Instructions for Form 1040, U.S. Individual Income Tax Return

Instructions for Form 1040

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If you were born before January 2, 1948, or were blind at the end of 2012, check the appropriate box(es) on line 39a. If you were married and checked the box on Form 1040, line 6b, and your spouse was born before January 2, 1948, or was blind at the end of 2012, also check the appropriate box(es) for your spouse. Be sure to enter the total number of boxes checked. Do not check any box(es) for your spouse if your filing status is head of household.

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If you were not totally blind as of December 31, 2012, you must get a statement certified by your eye doctor (ophthalmologist or optometrist) that:

You cannot see better than 20/200 in your better eye with glasses or contact lenses, or
Your field of vision is 20 degrees or less.

If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor (ophthalmologist or optometrist) to this effect instead.

You must keep the statement for your records.

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If your filing status is married filing separately (box 3 is checked), and your spouse itemizes deductions on his or her return, check the box on line 39b. Also check that box if you were a dual-status alien. But if you were a dual-status alien and you file a joint return with your spouse who was a U.S. citizen or resident alien at the end of 2012 and you and your spouse agree to be taxed on your combined worldwide income, do not check the box.

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In most cases, your federal income tax will be less if you take the larger of your itemized deductions or standard deduction.

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To figure your itemized deductions, fill in Schedule A.

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Most people can find their standard deduction by looking at the amounts listed under All others to the left of line 40.

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If you, or your spouse if filing jointly, can be claimed as a dependent on someone else's 2012 return, use the Standard Deduction Worksheet for Dependents to figure your standard deduction.

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If you checked any box on line 39a, use the chart below the Standard Deduction Worksheet for Dependents to figure your standard deduction.

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If you checked the box on line 39b, your standard deduction is zero, even if you were born before January 2, 1948, or were blind.

If you received a refund in 2012 of an amount (such as real estate taxes) that increased your standard deduction in an earlier year, you generally have to include the refund in your income. See Recoveries in Pub. 525.

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Standard Deduction Worksheet for Dependents—Line 40

Use this worksheet only if someone can claim you, or your spouse if filing jointly, as a dependent.

1.		Is your earned income* more than $650?
		Yes.	Add $300 to your earned income. Enter the total	1.
		No.	Enter $950
2.		Enter the amount shown below for your filing status.
	Single or married filing separately—$5,950 Married filing jointly or qualifying widow(er)—$11,900 Head of household—$8,700			2.
3.		Standard deduction.
	a.	Enter the smaller of line 1 or line 2. If born after January 1, 1948, and not blind, stop here and enter this amount on Form 1040, line 40. Otherwise, go to line 3b		3a.
	b.	If born before January 2, 1948, or blind, multiply the number on Form 1040, line 39a, by $1,150 ($1,450 if single or head of household)		3b.
	c.	Add lines 3a and 3b. Enter the total here and on Form 1040, line 40		3c.
* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27.

Standard Deduction Chart for People Who Were Born Before January 2, 1948, or Were Blind
Do not use this chart if someone can claim you, or your spouse if filing jointly, as a dependent. Instead, use the worksheet above.
Enter the number from the box on Form 1040, line 39a		▶	Do not use the number of exemptions from line 6d.
IF your filing status is . . .	AND the number in the box above is . . .			THEN your standard deduction is . . .
Single	1 2			$7,400 8,850
Married filing jointly or Qualifying widow(er)	1 2 3 4			$13,050 14,200 15,350 16,500
Married filing separately	1 2 3 4			$7,100 8,250 9,400 10,550
Head of household	1 2			$10,150 11,600

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Include in the total on line 44 all of the following taxes that apply.

Tax on your taxable income. Figure the tax using one of the methods described here.
Tax from Form 8814 (relating to the election to report child's interest or dividends). Check the appropriate box.
Tax from Form 4972 (relating to lump-sum distributions). Check the appropriate box.
Tax due to making a section 962 election (the election made by a domestic shareholder of a controlled foreign corporation to be taxed at corporate rates). See section 962 for details. Check the appropriate box and attach a statement showing how you figured the tax.
Recapture of an education credit. You may owe this tax if you claimed an education credit in an earlier year, and either tax-free educational assistance or a refund of qualified expenses was received in 2012 for the student. See Form 8863 for more details. Enter the amount and ECR in the space next to line 44.

Do you want the IRS to figure the tax on your taxable income for you?

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See chapter 29 of Pub. 17 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you did not pay enough, we will send you a bill.

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Use one of the following methods to figure your tax.

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If your taxable income is less than $100,000, you must use the Tax Table, later in these instructions, to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet right after the Tax Table.

However, do not use the Tax Table or Tax Computation Worksheet to figure your tax if any of the following applies.

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Form 8615 generally must be used to figure the tax for any child who had more than $1,900 of investment income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions), and who either:

Was under age 18 at the end of 2012,
Was age 18 at the end of 2012 and did not have earned income that was more than half of the child's support, or
Was a full-time student over age 18 and under age 24 at the end of 2012 and did not have earned income that was more than half of the child's support.

But if the child files a joint return for 2012 or if neither of the child's parents was alive at the end of 2012, do not use Form 8615 to figure the child's tax.

A child born on January 1, 1995, is considered to be age 18 at the end of 2012; a child born on January 1, 1994, is considered to be age 19 at the end of 2012; a child born on January 1, 1989, is considered to be age 24 at the end of 2012.

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If you have to file Schedule D, and line 18 or 19 of Schedule D is more than zero, use the Schedule D Tax Worksheet in the Instructions for Schedule D to figure the amount to enter on Form 1040, line 44. But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet instead.

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Use the Qualified Dividends and Capital Gain Tax Worksheet, later, to figure your tax if you do not have to use the Schedule D Tax Worksheet and if any of the following applies.

You reported qualified dividends on Form 1040, line 9b.
You do not have to file Schedule D and you reported capital gain distributions on Form 1040, line 13.
You are filing Schedule D and Schedule D, lines 15 and 16, are both more than zero.

But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet instead.

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If you had income from farming or fishing (including certain amounts received in connection with the Exxon Valdez litigation), your tax may be less if you choose to figure it using income averaging on Schedule J.

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If you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555 or 2555-EZ, you must figure your tax using the Foreign Earned Income Tax Worksheet.

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Foreign Earned Income Tax Worksheet—Line 44

If Form 1040, line 43, is zero, do not complete this worksheet.
1.	Enter the amount from Form 1040, line 43	1.
2.	Enter the amount from your (and your spouse's, if filing jointly) Form 2555, lines 45 and 50, or Form 2555-EZ, line 18	2.
3.	Add lines 1 and 2	3.
4.	Tax on the amount on line 3. Use the Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or Form 8615, whichever applies. See the instructions for line 44 to see which tax computation method applies. (Do not use a second Foreign Earned Income Tax Worksheet to figure the tax on this line)	4.
5.	Tax on the amount on line 2. If the amount on line 2 is less than $100,000, use the Tax Table to figure this tax. If the amount on line 2 is $100,000 or more, use the Tax Computation Worksheet	5.
6.	Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on Form 1040, line 44	6.
*Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, you must determine if you have a capital gain excess. To find out if you have a capital gain excess, subtract Form 1040, line 43, from line 6 of your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.
If you do not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then complete lines 5 and 6 above.
If you have a capital gain excess, complete a second Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above. These modifications are to be made only for purposes of filling out the Foreign Earned Income Tax Worksheet above.
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your Qualified Dividends and Capital Gain Tax Worksheet or line 9 of your Schedule D Tax Worksheet by your capital gain excess.
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your Qualified Dividends and Capital Gain Tax Worksheet or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.
3. Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the Instructions for Schedule D (Form 1040).

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Qualified Dividends and Capital Gain Tax Worksheet—Line 44

See the earlier instructions for line 44 to see if you can use this worksheet to figure your tax.
Before completing this worksheet, complete Form 1040 through line 43.
If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Form 1040.

1.	Enter the amount from Form 1040, line 43. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet			1.
2.	Enter the amount from Form 1040, line 9b*		2.
3.	Are you filing Schedule D?*
	Yes.	Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-	3.
	No.	Enter the amount from Form 1040, line 13
4.	Add lines 2 and 3		4.
5.	If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter -0-		5.
6.	Subtract line 5 from line 4. If zero or less, enter -0-			6.
7.	Subtract line 6 from line 1. If zero or less, enter -0-			7.
8.	Enter:
	$35,350 if single or married filing separately,
	$70,700 if married filing jointly or qualifying widow(er), $47,350 if head of household.			8.
9.	Enter the smaller of line 1 or line 8			9.
10.	Enter the smaller of line 7 or line 9			10.
11.	Subtract line 10 from line 9. This amount is taxed at 0%			11.
12.	Enter the smaller of line 1 or line 6			12.
13.	Enter the amount from line 11			13.
14.	Subtract line 13 from line 12			14.
15.	Multiply line 14 by 15% (.15)				15.
16.	Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure this tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet				16.
17.	Add lines 15 and 16				17.
18.	Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure this tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet				18.
19.	Tax on all taxable income. Enter the smaller of line 17 or line 18. Also include this amount on Form 1040, line 44. If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet				19.
*If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line.

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Use Form 6251 to figure the amount, if any, of your alternative minimum tax (AMT). Also see the Instructions for Form 6251 to see if you must file the form.

An electronic AMT Assistant is available on IRS.gov to help you see if you should fill out Form 6251. Enter AMT Assistant in the search box.

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If you paid income tax to a foreign country, you may be able to take this credit. Generally, you must complete and attach Form 1116 to do so.

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You do not have to complete Form 1116 to take this credit if all of the following apply.

All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement).
The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly).
You held the stock or bonds on which the dividends or interest were paid for at least 16 days and were not obligated to pay these amounts to someone else.
You are not filing Form 4563 or excluding income from sources within Puerto Rico.
All of your foreign taxes were:
1. Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and
2. Paid to countries that are recognized by the United States and do not support terrorism.

For more details on these requirements, see the Instructions for Form 1116.

Do you meet all five requirements above?

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Enter on line 47 the smaller of (a) your total foreign taxes, or (b) the amount on Form 1040, line 44.

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See Form 1116 to find out if you can take the credit and, if you can, if you have to file Form 1116.

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You may be able to take this credit if you paid someone to care for:

Your qualifying child under age 13 whom you claim as your dependent,
Your disabled spouse or any other disabled person who could not care for himself or herself, or
Your child whom you could not claim as a dependent because of the rules for Children of divorced or separated parents in the instructions for line 6c.

For details, use TeleTax topic 602 or see Form 2441.

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If you (or your dependent) paid qualified expenses in 2012 for yourself, your spouse, or your dependent to enroll in or attend an eligible educational institution, you may be able to take an education credit. See Form 8863 for details. However, you cannot take an education credit if any of the following applies.

You, or your spouse if filing jointly, are claimed as a dependent on someone else's (such as your parent's) 2012 tax return.
Your filing status is married filing separately.
The amount on Form 1040, line 38, is $90,000 or more ($180,000 or more if married filing jointly).
You are taking a deduction for tuition and fees on Form 1040, line 34, for the same student.
You, or your spouse, were a nonresident alien for any part of 2012 unless your filing status is married filing jointly.

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You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions, other than rollover contributions, to a traditional or Roth IRA; (b) elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan; (c) voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan); or (d) contributions to a 501(c)(18)(D) plan.

However, you cannot take the credit if either of the following applies.

The amount on Form 1040, line 38, is more than $28,750 ($43,125 if head of household; $57,500 if married filing jointly).
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1995, (b) is claimed as a dependent on someone else's 2012 tax return, or (c) was a student (defined next).

You were a student if during any part of 5 calendar months of 2012 you:

Were enrolled as a full-time student at a school, or
Took a full-time, on-farm training course given by a school or a state, county, or local government agency.

A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet.

For more details, use TeleTax topic 610 or see Form 8880.

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Child Tax Credits

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Child Tax Credits (continued)

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You may be able to take this credit by completing and attaching Form 5695 if you paid for any of the following during 2012.

Qualified solar electric property for use in your home located in the United States.
Qualified solar water heating property for use in your home located in the United States.
Qualified fuel cell property installed on or in connection with your main home located in the United States.
Qualified small wind energy property for use in connection with your home located in the United States.
Qualified geothermal heat pump property installed on or in connection with your home located in the United States.

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You may be able to take this credit by completing and attaching Form 5695 for any of the following improvements to your main home located in the United States in 2012 if they are new and meet certain requirements for energy efficiency.

Any insulation material or system primarily designed to reduce heat gain or loss in your home.
Exterior windows (including skylights).
Exterior doors.
A metal roof or asphalt roof with pigmented coatings or cooling granules primarily designed to reduce the heat gain in your home.

You may also be able to take this credit for the cost of the following items if the items meet certain performance and quality standards.

Certain electric heat pump water heaters, electric heat pumps, central air conditioners, and natural gas, propane, or oil water heaters.
A qualified furnace or hot water boiler that uses natural gas, propane, or oil.
A stove that burns biomass fuel to heat your home or to heat water for use in your home.
An advanced main air circulating fan used in a natural gas, propane, or oil furnace.

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If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of these credits.

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For details, see Form 5695.

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Enter the total of the following credits on line 53 and check the appropriate box(es). Check all boxes that apply. If box c is checked, also enter the applicable form number. To find out if you can take the credit, see the form or publication indicated.

General business credit. This credit consists of a number of credits that usually apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See Form 3800 or Pub. 334.
Credit for prior year minimum tax. If you paid alternative minimum tax in a prior year, see Form 8801.
Mortgage interest credit. If a state or local government gave you a mortgage credit certificate, see Form 8396.
Credit for the elderly or the disabled. See Schedule R.
Adoption credit. You may be able to take this credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2012. See the Instructions for Form 8839.
District of Columbia first-time homebuyer credit. See Form 8859.
Qualified plug-in electric drive motor vehicle credit. See Form 8936.
Qualified electric vehicle credit. You cannot claim this credit for a vehicle placed in service after 2006. You can claim this credit only if you have an electric vehicle passive activity credit carried forward from a prior year. See Form 8834, Part II.
Alternative motor vehicle credit. See Form 8910 if you placed a new fuel cell motor vehicle in service during 2012.
Alternative fuel vehicle refueling property credit. See Form 8911.
Credit to holders of tax credit bonds. See Form 8912.

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Tax and Credits(p37)

Line 39a(p37)

Blindness(p37)

Line 39b(p37)

Line 40(p37)

Itemized Deductions or Standard Deduction(p37)

Itemized Deductions(p38)

Standard Deduction(p38)

Exception 1 – dependent.(p38)

Exception 2 – box on line 39a checked.(p38)

Exception 3 – box on line 39b checked.(p38)

Line 44(p38)

Tax(p38)

□ Yes.(p38)

□ No.(p38)

Tax Table or Tax Computation Worksheet.(p38)

Form 8615.(p38)

Schedule D Tax Worksheet.(p38)

Qualified Dividends and Capital Gain Tax Worksheet.(p38)

Schedule J.(p38)

Foreign Earned Income Tax Worksheet.(p38)

Line 45(p42)

Alternative Minimum Tax(p42)

Line 47(p42)

Foreign Tax Credit(p42)

Exception.(p42)

□ Yes.(p42)

□ No.(p42)

Line 48(p42)

Credit for Child and Dependent Care Expenses(p42)

Line 49(p42)

Education Credits(p42)

Line 50(p42)

Retirement Savings Contributions Credit (Saver's Credit)(p42)

Line 52(p45)

Residential Energy Credits(p45)

Residential energy efficient property credit.(p45)

Nonbusiness energy property credit.(p45)

Condos and co-ops.(p45)

More details.(p45)

Line 53(p45)

Other Credits(p45)