2016 Instruction 1040 US Tax Form Instructions I1040gi

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Dec 15, 2016 Cat. No. 24811V
1040
INSTRUCTIONS
2016
Get a faster refund, reduce errors, and save paper.
For more information on IRS Free File and e-file,
see Free Software Options for Doing Your Taxes in
these instructions or go to IRS.gov/freefile.
Department of the Treasury Internal Revenue Service IRS.gov IRS
is the fast, safe, and free
way to prepare and e-file
your taxes. See
IRS.gov/freefile.
See What’s New in these instructions.
THIS BOOKLET DOES NOT CONTAIN INSTRUCTIONS FOR ANY FORM 1040 SCHEDULES
For the latest information about developments
related to Form 1040 and its instructions, such
as legislation enacted after they were published, go
to IRS.gov/form1040.
FUTURE DEVELOPMENTS
2016 TAX CHANGES
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Table of Contents
Contents Page Contents Page
What's New ........................6
Filing Requirements ..................7
Do You Have To File? ..............7
When and Where Should You File? .....7
Where To Report Certain Items
From 2016 Forms W-2, 1095,
1097, 1098, and 1099 ........... 10
Line Instructions for Form 1040 ......... 13
Name and Address ............... 13
Social Security Number (SSN) ....... 13
Presidential Election Campaign Fund
........................... 13
Filing Status ................... 14
Exemptions .................... 15
Income ....................... 21
Adjusted Gross Income ............ 31
Tax and Credits ................. 38
Other Taxes .................... 50
Payments ..................... 53
Refund ....................... 71
Amount You Owe ................ 74
Third Party Designee .............. 75
Sign Your Return ................ 76
Assemble Your Return ............ 77
2016 Tax Table .................... 78
General Information ................. 91
Refund Information .................. 96
Tax Topics ....................... 97
Disclosure, Privacy Act, and Paperwork
Reduction Act Notice ............. 99
Order Form for Forms and Publications ... 101
Major Categories of Federal Income and
Outlays for Fiscal Year 2015 ....... 102
Index .......................... 104
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Department
of the
Treasury
Internal
Revenue
Service
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The Taxpayer Advocate Service Is Here To Help You
What is the Taxpayer Advocate Service?
The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps
taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and
understand your rights under the Taxpayer Bill of Rights.
What can the Taxpayer Advocate Service do for you?
We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our assistance,
your advocate will be with you at every turn and do everything possible. TAS can help you if:
Your problem is causing financial difficulty for you, your family, or your business.
You face (or your business is facing) an immediate threat of adverse action.
You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.
How can you reach us?
We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is at
www.TaxpayerAdvocate.irs.gov, at IRS.gov/advocate, and in your local directory. You can also call us at 1-877-777-4778.
How can you learn about your taxpayer rights?
The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at
www.TaxpayerAdvocate.irs.gov can help you understand what these rights mean to you and how they apply. These are your
rights. Know them. Use them.
How else does the Taxpayer Advocate Service help taxpayers?
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it
to us at IRS.gov/sams.
Low Income Taxpayer Clinics Help Taxpayers
Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Some serve individuals whose income is below a certain
level and who need to resolve a tax problem. These clinics provide professional representation before the IRS or in court on
audits, appeals, tax collection disputes, and other issues for free or for a small fee. Some clinics provide information about
taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. For
more information, and to find a clinic near you, read the LITC page on IRS.gov/litc or IRS Publication 4134, Low Income
Taxpayer Clinic List. You can also get this publication at your local IRS office or by calling 1-800-829-3676.
Suggestions for Improving the IRS
Taxpayer Advocacy Panel
Have a suggestion for improving the IRS and do not know who to contact? The Taxpayer Advocacy Panel (TAP) is a diverse
group of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS service
and customer satisfaction. The panel is demographically and geographically diverse, with at least one member from each state,
the District of Columbia, and Puerto Rico. Contact TAP at www.improveirs.org or 1-888-912-1227 (toll-free).
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Affordable Care Act—
What You Need To Know
Requirement To Reconcile Advance Payments of the Premium Tax Credit
The premium tax credit helps pay premiums for health insurance purchased from the Marketplace. Eligible
individuals may have advance payments of the premium tax credit made on their behalf directly to the insurance
company.
If you or a family member enrolled in health insurance through the Marketplace and advance payments of the premium
tax credit were made to your insurance company to reduce your monthly premium payment, you must attach
Form 8962 to your return to reconcile (compare) the advance payments with your premium tax credit for the year.
The Marketplace is required to send Form 1095-A by January 31, 2017, listing the advance payments and other
information you need to complete Form 8962.
1. You will need Form 1095-A from the Marketplace.
2. Complete Form 8962 to claim the credit and to reconcile your advance credit payments.
3. Include Form 8962 with your 1040, 1040A, or 1040NR. (Do not include Form 1095-A.)
Health Coverage Individual Responsibility Payment Increased
If you or someone in your household didn’t have qualifying health care coverage or qualify for a coverage
exemption for one or more months of 2016, the amount of your shared responsibility payment may be larger
this year than it was last year. For 2016, you must:
Report Health Care Coverage
Check the Full-year coverage
box on line 61 to indicate that
you, your spouse (if filing jointly),
and anyone you can or do claim
as a dependent had qualifying
health care coverage throughout
2016.
Claim a Coverage Exemption
Attach Form 8965 to claim an
exemption from the requirement
to have health care coverage.
For more information, go to
IRS.gov/form8965.
Make a Shared Responsibility Payment
Make a shared responsibility payment
if, for any month in 2016, you, your
spouse (if filing jointly), or anyone you
can or do claim as a dependent didn’t
have coverage and don’t qualify for a
coverage exemption. For more
information, go to IRS.gov/srp.
Health Coverage Reporting
• If you or someone in your family had health coverage in 2016, the provider of that coverage is required to send you
a Form 1095-A, 1095-B, or 1095-C (with Part III completed), that lists individuals in your family who were enrolled
in the coverage and shows their months of coverage. You may use this information to help complete line 61. You
should receive the Form 1095-A by early February 2017 and Form 1095-B or 1095-C by early March 2017, if
applicable. You do not need to wait to receive your Form 1095-B or 1095-C to file your return. You may rely on
other information about your coverage to complete line 61. Do not include Form 1095-A, Form 1095-B, or Form
1095-C with your tax return.
• If you or someone in your family was an employee in 2016, the employer may be required to send you a Form
1095-C. Part II of Form 1095-C shows whether your employer offered you health insurance coverage and, if
so, information about the offer. You should receive Form 1095-C by early March 2017. This information may
be relevant if you purchased health insurance coverage for 2016 through the Health Insurance Marketplace
and wish to claim the premium tax credit on line 69. However, you do not need to wait to receive this form to file
your return. You may rely on other information received from your employer. If you don’t wish to claim the
premium tax credit for 2016, you don’t need the information in Part II of Form 1095-C. For more information on
who is eligible for the premium tax credit, see the Instructions for Form 8962.
OR OR
A
8965
BC
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Why have 49 million Americans used Free File?
• Security—Free File uses the latest encryption technology to safeguard your information.
• Faster Refunds—Join the eight in 10 taxpayers who
get their refunds faster by using direct deposit and e-le.
• It’s Free—through IRS.gov/freele.
• Flexible Payments—File early; pay by April 18, 2017.
• Quick Receipt—Get an acknowledgment that your return was
received and accepted.
• Go Green—Reduce the amount of paper used.
IRS.gov is the gateway to all electronic services offered by the IRS, as well as the spot to download forms at IRS.gov/forms.
Free Software Options for Doing Your Taxes
• Greater Accuracy—Fewer errors mean faster processing.
Make your tax payments electronically—it’s easy.
You can make electronic payments online, by phone, or from a mobile device. Paying electronically is
safe and secure. The IRS uses the latest encryption technology and does not store the bank account
number you use to submit your payment. When you use any of the IRS electronic payment options, it
puts you in control of paying your tax bill and gives you peace of mind. You determine the payment
date, and you will receive an immediate conrmation from the IRS. It’s easy, secure, and much quicker
than mailing in a check or money order. Go to IRS.gov/payments to see all your electronic payment
options.
Do Your Taxes for Free
If your adjusted gross income was $64,000 or less in 2016, you can use free tax software to prepare and e-le your tax return.
Earned more? Use Free File Fillable Forms.
Free File. This public-private partnership, between the IRS and tax software providers, makes approximately a dozen brand
name commercial software products and e-le available for free. Seventy percent of the nation’s taxpayers are eligible.
Just visit IRS.gov/freele for details. Free File combines all the benets of e-le and easy-to-use software at no cost. Guided
questions will help ensure you get all the tax credits and deductions you are due. It’s fast, safe, and free.
You can review each software provider’s criteria for free usage or use an online tool to nd which free software products match
your situation. Some software providers offer state tax return preparation for free.
Free File Fillable Forms. The IRS offers electronic versions of IRS paper forms that also can be e-led for free. Free File
Fillable Forms is best for people experienced in preparing their own tax returns. There are no income limitations. Free File
Fillable Forms does basic math calculations. It supports only federal tax forms.
Volunteers are available in communities nationwide providing free tax assistance to low to moderate income (generally under
$54,000 in adjusted gross income) and elderly taxpayers (age 60 and older). At selected sites, taxpayers can input and
electronically le their own tax return with the assistance of an IRS-certied volunteer.
See How To Get Tax Help near the end of these instructions for additional information or visit IRS.gov (Keyword: VITA) for a
VITA/TCE site near you!
Free Tax Help Available Nationwide
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What's New For information about any additional changes to the 2016 tax law or any other devel-
opments affecting Form 1040 or its instructions, go to IRS.gov/form1040.
Due date of return. File Form 1040 by
April 18, 2017. The due date is April 18,
instead of April 15, because of the
Emancipation Day holiday in the Dis-
trict of Columbia—even if you do not
live in the District of Columbia.
Service at local IRS offices by ap
pointment. Many issues can be re-
solved conveniently on IRS.gov with no
waiting. However, if you need help from
an IRS Taxpayer Assistance Center
(TAC) you need to call to schedule an
appointment. Go to IRS.gov/taclocator
to find the location and telephone num-
ber of your local TAC.
Delayed refunds for returns claiming
certain credits. Due to changes in the
law, the IRS can’t issue refunds before
February 15, 2017, for returns that claim
the earned income credit or the addition-
al child tax credit. This delay applies to
the entire refund, not just the portion as-
sociated with these credits. Although the
IRS will begin releasing refunds for re-
turns that claim these credits on Febru-
ary 15, because of the time it generally
takes banking or financial systems to
process deposits, it is unlikely that your
refund will arrive in your bank account
or on a debit card before the week of
February 27 (assuming your return has
no processing issues and you elect direct
deposit).
If you filed your return before Febru-
ary 15, you can check Where’s My Re
fund on IRS.gov (IRS.gov/refunds) a few
days after February 15 for your projec-
ted deposit date. Where’s My Refund
and the IRS2Go phone app remain the
best ways to check the status of any re-
fund.
Delivery services. Eight delivery serv-
ices have been added to the list of desig-
nated private delivery services. For the
complete list see Private Delivery Serv
ices.
Cash payment option. There is a new
option for taxpayers who want to pay
their taxes in cash. For details, see Pay
by Cash under Amount You Owe in the
instructions for line 78.
Educator expenses. You may be able
to deduct certain expenses for professio-
nal development courses you have taken
related to the curriculum you teach or to
the students you teach. See the instruc-
tions for line 23.
Olympic and Paralympic medals and
USOC prize money. If you receive
Olympic and Paralympic medals and
United States Olympic Committee prize
money, the value of the medals and the
amount of the prize money may be non-
taxable. See the instructions for line 21
for more information.
Child tax credit and additional child
tax credit may be disallowed. If you
take the child tax credit or the additional
child tax credit even though you aren’t
eligible, you may not be able to take
these credits for up to 10 years. For
more information, see the Instructions
for Schedule 8812.
American opportunity credit may be
disallowed. If you take the American
opportunity credit even though you
aren’t eligible, you may not be able to
take this credit for up to 10 years. For
more information, see the Instructions
for Form 8863.
Health coverage tax credit (HCTC).
The HCTC is a tax credit that pays a
percentage of health insurance premi-
ums for certain eligible taxpayers and
their qualifying family members. The
HCTC is a separate tax credit with dif-
ferent eligibility rules than the premium
tax credit. You may have received
monthly advance payments of the
HCTC beginning in July 2016. For in-
formation on how to report these pay-
ments or on the HCTC generally, see the
Instructions for Form 8885.
Get Transcript Online. The Get Tran-
script Online tool on IRS.gov is availa-
ble again to get a copy of your tax tran-
scripts and similar documents. To guard
against fraud, you will now need to go
through a two-step authentication proc-
ess in order to use the online tool. For
more information, go to IRS.gov/
transcript.
Electronic Filing PIN. Electronic Fil-
ing PIN, an IRS-generated PIN used to
verify your signature on your self-pre-
pared, electronic tax return, is no longer
available. To validate your signature,
you must use your prior-year adjusted
gross income or prior-year self-select
PIN. See Electronic Return Signatures,
later.
Individual taxpayer identification
number (ITIN) renewal. If you were
assigned an ITIN before January 1,
2013, or if you have an ITIN that you
haven't included on a tax return in the
last three consecutive years, you may
need to renew it. For more information,
see the Instructions for Form W-7.
Personal exemption amount increased
for certain taxpayers. Your personal
exemption is increased to $4,050. But
the amount is reduced if your adjusted
gross income is more than $155,650 if
married filing separately; $259,400 if
single; $285,350 if head of household;
or $311,300 if married filing jointly or
qualifying widow(er). See the instruc-
tions for line 42.
Limit on itemized deductions. You
may not be able to deduct all of your
itemized deductions if your adjusted
gross income is more than $155,650 if
married filing separately; $259,400 if
single; $285,350 if head of household;
or $311,300 if married filing jointly or
qualifying widow(er).
Standard deduction for head of
household filing status. For 2016, the
standard deduction for head of house-
hold filing status has increased to
$9,300. The other standard deduction
amounts are unchanged.
Secure access. To combat identity
fraud, the IRS has upgraded its identity
verification process for certain self-help
tools on IRS.gov. To find out what types
of information new users will need, go
to IRS.gov/secureaccess.
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Filing
Requirements
These rules apply to all U.S. citizens, regardless of where they live, and resident ali-
ens.
Have you tried IRS efile? It's the fastest way to get your refund
and it's free if you are eligible. Visit IRS.gov for details.
Do You Have To
File?
Use Chart A, B, or C to see if you must
file a return. U.S. citizens who lived in
or had income from a U.S. possession
should see Pub. 570. Residents of Puerto
Rico can use Tax Topic 901 to see if
they must file.
Even if you do not otherwise
have to file a return, you should
file one to get a refund of any
federal income tax withheld. You should
also file if you are eligible for any of the
following credits.
Earned income credit.
Additional child tax credit.
American opportunity credit.
Credit for federal tax on fuels.
Premium tax credit.
Health coverage tax credit.
See Pub. 501 for details. Also see
Pub. 501 if you do not have to file but
received a Form 1099-B (or substitute
statement).
Requirement to reconcile advance
payments of the premium tax credit.
If you, your spouse with whom you are
filing a joint return, or a dependent was
enrolled in coverage through the Mar-
ketplace for 2016 and advance payments
of the premium tax credit were made for
this coverage, you must file a 2016 re-
turn and attach Form 8962. You (or
whoever enrolled you) should have re-
ceived Form 1095-A from the Market-
place with information about your cov-
erage and any advance payments.
You must attach Form 8962 even if
someone else enrolled you, your spouse,
or your dependent. If you are a depend-
ent who is claimed on someone else's
2016 return, you do not have to attach
Form 8962.
Exception for certain children under
age 19 or fulltime students. If certain
conditions apply, you can elect to in-
clude on your return the income of a
TIP
child who was under age 19 at the end
of 2016 or was a full-time student under
age 24 at the end of 2016. To do so, use
Form 8814. If you make this election,
your child doesn't have to file a return.
For details, use Tax Topic 553 or see
Form 8814.
A child born on January 1, 1993, is
considered to be age 24 at the end of
2016. Do not use Form 8814 for such a
child.
Resident aliens. These rules also apply
if you were a resident alien. Also, you
may qualify for certain tax treaty bene-
fits. See Pub. 519 for details.
Nonresident aliens and dualstatus ali
ens. These rules also apply if you were
a nonresident alien or a dual-status alien
and both of the following apply.
You were married to a U.S. citizen
or resident alien at the end of 2016.
You elected to be taxed as a resi-
dent alien.
See Pub. 519 for details.
Specific rules apply to deter
mine if you are a resident alien,
nonresident alien, or dualsta
tus alien. Most nonresident aliens and
dualstatus aliens have different filing
requirements and may have to file Form
1040NR or Form 1040NREZ. Pub. 519
discusses these requirements and other
information to help aliens comply with
U.S. tax law.
When and Where
Should You File?
File Form 1040 by April 18, 2017. (The
due date is April 18, instead of April 15,
because of the Emancipation Day holi-
day in the District of Columbia—even if
you do not live in the District of Colum-
bia.) If you file after this date, you may
have to pay interest and penalties. See
Interest and Penalties, later.
If you were serving in, or in support
of, the U.S. Armed Forces in a designa-
CAUTION
!
ted combat zone or contingency opera-
tion, you may be able to file later. See
Pub. 3 for details.
If you efile your return, there is no
need to mail it. However, if you choose
to mail it, filing instructions and ad-
dresses are at the end of these instruc-
tions.
What if You Can't File on
Time?
You can get an automatic 6-month ex-
tension if, no later than the date your re-
turn is due, you file Form 4868. For de-
tails, see Form 4868. Instead of filing
Form 4868, you can apply for an auto-
matic extension by making an electronic
payment by the due date of your return.
An automatic 6month exten
sion to file doesn't extend the
time to pay your tax. If you do
not pay your tax by the original due date
of your return, you will owe interest on
the unpaid tax and may owe penalties.
See Form 4868.
If you are a U.S. citizen or resident
alien, you may qualify for an automatic
extension of time to file without filing
Form 4868. You qualify if, on the due
date of your return, you meet one of the
following conditions.
You live outside the United States
and Puerto Rico and your main place of
business or post of duty is outside the
United States and Puerto Rico.
You are in military or naval serv-
ice on duty outside the United States and
Puerto Rico.
This extension gives you an extra 2
months to file and pay the tax, but inter-
est will be charged from the original due
date of the return on any unpaid tax.
You must include a statement showing
that you meet the requirements. If you
are still unable to file your return by the
end of the 2-month period, you can get
an additional 4 months if, no later than
June 15, 2017, you file Form 4868. This
4-month extension of time to file doesn't
CAUTION
!
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extend the time to pay your tax. See
Form 4868.
Private Delivery Services
If you choose to mail your return, you
can use certain private delivery services
designated by the IRS to meet the "time-
ly mailing treated as timely filing/
paying" rule for tax returns and pay-
ments. These private delivery services
include only the following.
DHL Express 9:00, DHL Express
10:30, DHL Express 12:00, DHL Ex-
press Worldwide, DHL Express Enve-
lope, DHL Import Express 10:30, DHL
Import Express 12:00, DHL Import Ex-
press Worldwide.
UPS Next Day Air Early AM, UPS
Next Day Air, UPS Next Day Air Saver,
UPS 2nd Day Air, UPS 2nd Day Air
A.M., UPS Worldwide Express Plus,
and UPS Worldwide Express.
FedEx First Overnight, FedEx Pri-
ority Overnight, FedEx Standard Over-
night, FedEx 2 Day, FedEx International
Next Flight Out, FedEx International
Priority, FedEx International First, and
FedEx International Economy.
For more information, go to IRS.gov
and enter “private delivery service” in
the search box. The search results will
direct you to the IRS mailing address to
use if you are using a private delivery
service. You will also find any updates
to the list of designated private delivery
services.
The private delivery service can tell
you how to get written proof of the mail-
ing date.
Chart A—For Most People
IF your filing status is . . .
AND at the end of 2016
you were* . . .
THEN file a return if your gross
income** was at least . . .
Single
(see the instructions for line 1)
under 65
65 or older
$10,350
11,900
Married filing jointly***
(see the instructions for line 2)
under 65 (both spouses)
65 or older (one spouse)
65 or older (both spouses)
$20,700
21,950
23,200
Married filing separately (see the
instructions for line 3) any age $4,050
Head of household (see the instructions
for line 4)
under 65
65 or older
$13,350
14,900
Qualifying widow(er) with dependent
child (see the instructions for line 5)
under 65
65 or older
$16,650
17,900
*If you were born on January 1, 1952, you are considered to be age 65 at the end of 2016. (If your spouse died in 2016 or
if you are preparing a return for someone who died in 2016, see Pub. 501.)
**Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from
tax, including any income from sources outside the United States or from the sale of your main home (even if you can
exclude part or all of it). Do not include any social security benefits unless (a) you are married filing a separate return
and you lived with your spouse at any time in 2016 or (b) onehalf of your social security benefits plus your other gross
income and any taxexempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the
instructions for lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income.
Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means,
for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring gross income, do not reduce your
income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9.
***If you didn't live with your spouse at the end of 2016 (or on the date your spouse died) and your gross income was at
least $4,050, you must file a return regardless of your age.
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Chart B—For Children and Other Dependents (See the instructions for line 6c to find out if
someone can claim you as a dependent.)
If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes
unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a
trust. Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross
income is the total of your unearned and earned income.
Single dependents. Were you either age 65 or older or blind?
No. You must file a return if any of the following apply.
Your unearned income was over $1,050.
Your earned income was over $6,300.
Your gross income was more than the larger of—
$1,050, or
Your earned income (up to $5,950) plus $350.
Yes. You must file a return if any of the following apply.
Your unearned income was over $2,600 ($4,150 if 65 or older and blind).
Your earned income was over $7,850 ($9,400 if 65 or older and blind).
Your gross income was more than the larger of—
$2,600 ($4,150 if 65 or older and blind), or
Your earned income (up to $5,950) plus $1,900 ($3,450 if 65 or older and blind).
Married dependents. Were you either age 65 or older or blind?
No. You must file a return if any of the following apply.
Your unearned income was over $1,050.
Your earned income was over $6,300.
Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
Your gross income was more than the larger of—
$1,050, or
Your earned income (up to $5,950) plus $350.
Yes. You must file a return if any of the following apply.
Your unearned income was over $2,300 ($3,550 if 65 or older and blind).
Your earned income was over $7,550 ($8,800 if 65 or older and blind).
Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
Your gross income was more than the larger of—
$2,300 ($3,550 if 65 or older and blind), or
Your earned income (up to $5,950) plus $1,600 ($2,850 if 65 or older and blind).
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Chart C—Other Situations When You Must File
You must file a return if any of the five conditions below apply for 2016.
1. You owe any special taxes, including any of the following.
a. Alternative minimum tax.
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.
But if you are filing a return only because you owe this tax, you can file Form 5329 by itself.
c. Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by
itself.
d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer
who didn't withhold these taxes.
e. Recapture of first-time homebuyer credit. See the instructions for line 60b.
f. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or
on group-term life insurance and additional taxes on health savings accounts. See the instructions for line 62.
g. Recapture taxes. See the instructions for lines 44, 60b, and line 62.
2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA
distributions.
3. You had net earnings from self-employment of at least $400.
4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from
employer social security and Medicare taxes.
5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage
through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the
advance payments.
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Where To Report Certain Items From 2016 Forms W-2, 1095, 1097, 1098, and
1099
File electronically. You may be eligible for free tax software that will take the guesswork out of preparing your return. Free File
makes available free brand-name software and free efile. Visit IRS.gov/freefile for details.
If any federal income tax withheld is shown on these forms, include the tax withheld on Form 1040, line 64. If any state or local
income tax withheld is shown on these forms and you deduct state and local income taxes on Schedule A, line 5, include the tax
withheld in your deduction on that line.
Form Item and Box in Which It Should Appear Where To Report
W-2 Wages, tips, other compensation (box 1) Form 1040, line 7
Allocated tips (box 8) See Wages, Salaries, Tips, etc.
Dependent care benefits (box 10) Form 2441, Part III
Adoption benefits (box 12, code T) Form 8839, line 20
Employer contributions to an
Archer MSA (box 12, code R)
Form 8853, line 1
Employer contributions to a health savings account (box 12,
code W)
Form 8889, line 9
Uncollected social security and Medicare or RRTA tax
(box 12, code A, B, M, or N)
See the instructions for Form 1040, line 62
W-2G Gambling winnings (box 1) Form 1040, line 21 (Schedule C or C-EZ for professional gamblers)
1095-A Advance payment of premium tax credit (line 33, column c) See Form 8962 and its instructions
1097-BTC Bond tax credit See Form 8912 and its instructions
1098 Mortgage interest (box 1) Schedule A, line 10, but first see the instructions on Form 1098*
Refund of overpaid interest (box 4) Form 1040, line 21, but first see the instructions on Form 1098*
Mortgage insurance premiums (box 5) See the instructions for Schedule A, line 13*
Points (box 6) Schedule A, line 10, but first see the instructions on Form 1098*
1098-C Contributions of motor vehicles, boats, and airplanes Schedule A, line 17
1098-E Student loan interest (box 1) See the instructions for Form 1040, line 33*
1098-MA Homeowner mortgage payments (box 3) Schedule A, but first see the instructions on Form 1098-MA
1098-T Qualified tuition and related expenses
(box 1)
See the instructions for Form 1040, line 34, or Form 1040, line 50; but first see the
instructions on Form 1098-T*
1099-A Acquisition or abandonment of secured property See Pub. 4681
1099-B Sales price of stocks, bonds, etc. (box 1d), cost or other
basis (box 1e), and adjustments (boxes 1f and 1g)
Form 8949 or Schedule D, whichever applies; see the Instructions for Form 8949
Aggregate profit or (loss) on contracts (box 11) Form 6781, line 1
Bartering (box 13) See Pub. 525
1099-C Canceled debt (box 2) See Pub. 4681
1099-DIV Total ordinary dividends (box 1a) Form 1040, line 9a
Qualified dividends (box 1b) See the instructions for Form 1040, line 9b
Total capital gain distributions (box 2a) Form 1040, line 13, or, if required, Schedule D, line 13
Unrecaptured section 1250 gain (box 2b) See the instructions for Schedule D, line 19
Section 1202 gain (box 2c) See Exclusion of Gain on Qualified Small Business (QSB) Stock in the instructions for
Schedule D
Collectibles (28%) gain (box 2d) See the instructions for Schedule D, line 18
Nondividend distributions (box 3) See the instructions for Form 1040, line 9a
Investment expenses (box 5) Schedule A, line 23
Foreign tax paid (box 6) Form 1040, line 48, or Schedule A, line 8; but first see the instructions for line 48
Exempt-interest dividends (box 10) Form 1040, line 8b
Specified private activity bond interest dividends (box 11) Form 6251, line 12
1099-G Unemployment compensation (box 1) See the instructions for Form 1040, line 19
State or local income tax refunds, credits, or offsets (box 2) See the instructions for Form 1040, line 10, and if box 8 on Form 1099-G is checked, see the
box 8 instructions
RTAA payments (box 5) Form 1040, line 21
Taxable grants (box 6) Form 1040, line 21*
Agriculture payments (box 7) See the Instructions for Schedule F or Pub. 225*
Market gain (box 9) See the Instructions for Schedule F
*If the item relates to an activity for which you are required to file Schedule C, CEZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form
instead.
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Form Item and Box in Which It Should Appear Where To Report
1099-INT Interest income (box 1) See the instructions on Form 1099-INT
Early withdrawal penalty (box 2) Form 1040, line 30
Interest on U.S. savings bonds and
Treasury obligations (box 3)
See the instructions on Form 1099-INT and the instructions for Form 1040, line 8a
Investment expenses (box 5) Schedule A, line 23
Foreign tax paid (box 6) Form 1040, line 48, or Schedule A, line 8; but first see the instructions for line 48
Tax-exempt interest (box 8) Form 1040, line 8b
Specified private activity bond interest (box 9) Form 6251, line 12
Market discount (box 10) Form 1040, line 8a
Bond premium (box 11), bond premium on Treasury
obligations (box 12), and bond premium on tax-exempt
bond (box 13)
See the instructions on Form 1099-INT and Pub. 550
1099-K Payment card and third party network
transactions
Schedule C, C-EZ, E, or F
1099-LTC Long-term care and accelerated death benefits See Pub. 525 and the Instructions for Form 8853
1099-MISC Rents (box 1) See the Instructions for Schedule E*
Royalties (box 2) See the Instructions for Schedule E* (for timber, coal, and iron ore royalties, see Pub. 544)*
Other income (box 3) Form 1040, line 21*
Nonemployee compensation (box 7) Schedule C, C-EZ, or F; but if you were not self-employed, see the instructions on Form
1099-MISC
Excess golden parachute payments (box 13) See the instructions for Form 1040, line 62
Other (boxes 5, 6, 8, 9, 10, 14, and 15b) See the instructions on Form 1099-MISC
1099-OID Original issue discount (box 1)
Other periodic interest (box 2) See the instructions on Form 1099-OID
Early withdrawal penalty (box 3) Form 1040, line 30
Market discount (box 5) Form 1040, line 8a
Acquisition premium (box 6) See the instructions on Form 1099-OID and Pub. 550
Original issue discount on U.S. Treasury obligations (box 8) See the instructions on Form 1099-OID
Investment expenses (box 9) Schedule A, line 23
Bond premium (box 10) See the instructions on Form 1099-OID and Pub. 550
1099-PATR Patronage dividends and other distributions from a
cooperative (boxes 1, 2, 3, and 5)
Schedule C, C-EZ, or F or Form 4835; but first see the instructions on Form 1099-PATR
Domestic production activities deduction (box 6) Form 8903, line 23
Credits and other deductions (boxes 7, 8, and 10) See the instructions on Form 1099-PATR
Patron's AMT adjustment (box 9) Form 6251, line 27
1099-Q Qualified education program payments See the instructions for Form 1040, line 21
1099-QA Distributions from ABLE accounts See the instructions for line 21, Form 5329, and Pub. 907
1099-R Distributions from IRAs** See the instructions for Form 1040, lines 15a and 15b
Distributions from pensions, annuities, etc. See the instructions for Form 1040, lines 16a and 16b
Capital gain (box 3) See the instructions on Form 1099-R
Disability income with code 3 in box 7 See the instructions for Form 1040, line 7
1099-S Gross proceeds from real estate transactions
(box 2)
Form 4797, Form 6252, Form 8824, or Form 8949
Buyer's part of real estate tax (box 5) See the instructions for Schedule A, line 6*
1099-SA Distributions from health savings accounts (HSAs) Form 8889, line 14a
Distributions from MSAs*** Form 8853
SSA-1099 Social security benefits See the instructions for lines 20a and 20b
RRB-1099 Railroad retirement benefits See the instructions for lines 20a and 20b
*If the item relates to an activity for which you are required to file Schedule C, CEZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form
instead.
**This includes distributions from Roth, SEP, and SIMPLE IRAs.
***This includes distributions from Archer and Medicare Advantage MSAs.
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Line
Instructions for
Form 1040
You may be eligible for free tax software that will take the guesswork out of preparing
your return. Free File makes available free brand-name software and free efile. Visit
IRS.gov/freefile for details.
Section references are to the Internal Revenue Code.
Name and Address
Print or type the information in the
spaces provided. If you are married fil-
ing a separate return, enter your spouse's
name on line 3 instead of below your
name.
If you filed a joint return for
2015 and you are filing a joint
return for 2016 with the same
spouse, be sure to enter your names and
SSNs in the same order as on your 2015
return.
Name Change
If you changed your name because of
marriage, divorce, etc., be sure to report
the change to the Social Security Ad-
ministration (SSA) before filing your re-
turn. This prevents delays in processing
your return and issuing refunds. It also
safeguards your future social security
benefits.
Address Change
If you plan to move after filing your re-
turn, use Form 8822 to notify the IRS of
your new address.
P.O. Box
Enter your box number only if your post
office doesn't deliver mail to your home.
Foreign Address
If you have a foreign address, enter the
city name on the appropriate line. Do
not enter any other information on that
line, but also complete the spaces below
that line. Do not abbreviate the country
name. Follow the country's practice for
entering the postal code and the name of
the province, county, or state.
Death of a Taxpayer
See Death of a Taxpayer under General
Information, later.
TIP
Social Security
Number (SSN)
An incorrect or missing SSN can in-
crease your tax, reduce your refund, or
delay your refund. To apply for an SSN,
fill in Form SS-5 and return it, along
with the appropriate evidence docu-
ments, to the Social Security Adminis-
tration (SSA). You can get Form SS-5
online at www.socialsecurity.gov, from
your local SSA office, or by calling the
SSA at 1-800-772-1213. It usually takes
about 2 weeks to get an SSN once the
SSA has all the evidence and informa-
tion it needs.
Check that both the name and SSN
on your Forms 1040, W-2, and 1099
agree with your social security card. If
they do not, certain deductions and cred-
its on your Form 1040 may be reduced
or disallowed and you may not receive
credit for your social security earnings.
If your Form W-2 shows an incorrect
SSN or name, notify your employer or
the form-issuing agent as soon as possi-
ble to make sure your earnings are credi-
ted to your social security record. If the
name or SSN on your social security
card is incorrect, call the SSA.
IRS Individual Taxpayer
Identification Numbers
(ITINs) for Aliens
If you are a nonresident or resident alien
and you do not have and are not eligible
to get an SSN, you must apply for an
ITIN. It takes about 7 weeks to get an
ITIN.
If you already have an ITIN, enter it
wherever your SSN is requested on your
tax return.
Make sure your ITIN has not expired.
ITINs that have not been included on a
U.S. federal tax return at least once in
the last three consecutive years will ex-
pire. In addition, ITINs that were as-
signed before 2013 will expire accord-
ing to an annual schedule, regardless of
use. Expired ITINs must be renewed in
order to avoid delays in processing your
return.
An ITIN is for tax use only. It doesn't
entitle you to social security benefits or
change your employment or immigra-
tion status under U.S. law.
For more information on ITINs, in-
cluding application, expiration, and re-
newal, see Form W-7 and its instruc-
tions.
If you receive an SSN after previous-
ly using an ITIN, stop using your ITIN.
Use your SSN instead. Visit a local IRS
office or write a letter to the IRS ex-
plaining that you now have an SSN and
want all your tax records combined un-
der your SSN. Details about what to in-
clude with the letter and where to mail it
are at IRS.gov/ITINinfo.
Nonresident Alien Spouse
If your spouse is a nonresident alien, he
or she must have either an SSN or an
ITIN if:
You file a joint return,
You file a separate return and
claim an exemption for your spouse, or
Your spouse is filing a separate re-
turn.
Presidential Election
Campaign Fund
This fund helps pay for Presidential
election campaigns. The fund reduces
candidates' dependence on large contri-
butions from individuals and groups and
places candidates on an equal financial
footing in the general election. The fund
also helps pay for pediatric medical re-
search. If you want $3 to go to this fund,
check the box. If you are filing a joint
return, your spouse can also have $3 go
to the fund. If you check a box, your tax
or refund won't change.
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2016 Form 1040—Lines 1 Through 4
Filing Status
Check only the filing status that applies
to you. The ones that will usually give
you the lowest tax are listed last.
Married filing separately.
Single.
Head of household.
Married filing jointly.
Qualifying widow(er) with de-
pendent child.
For information about marital status, see
Pub. 501.
More than one filing status can
apply to you. You can choose
the one that will give you the
lowest tax.
Line 1
Single
You can check the box on line 1 if any
of the following was true on December
31, 2016.
You were never married.
You were legally separated accord-
ing to your state law under a decree of
divorce or separate maintenance. But if,
at the end of 2016, your divorce wasn't
final (an interlocutory decree), you are
considered married and can't check the
box on line 1.
You were widowed before January
1, 2016, and didn't remarry before the
end of 2016. But if you have a depend-
ent child, you may be able to use the
qualifying widow(er) filing status. See
the instructions for line 5.
Line 2
Married Filing Jointly
You can check the box on line 2 if any
of the following apply.
You were married at the end of
2016, even if you didn't live with your
spouse at the end of 2016.
Your spouse died in 2016 and you
didn't remarry in 2016.
You were married at the end of
2016, and your spouse died in 2017 be-
fore filing a 2016 return.
A married couple filing jointly report
their combined income and deduct their
combined allowable expenses on one re-
turn. They can file a joint return even if
only one had income or if they didn't
TIP
live together all year. However, both
persons must sign the return. Once you
file a joint return, you can't choose to
file separate returns for that year after
the due date of the return.
Joint and several tax liability. If you
file a joint return, both you and your
spouse are generally responsible for the
tax and interest or penalties due on the
return. This means that if one spouse
doesn't pay the tax due, the other may
have to. Or, if one spouse doesn't report
the correct tax, both spouses may be re-
sponsible for any additional taxes as-
sessed by the IRS. You may want to file
separately if:
You believe your spouse isn't re-
porting all of his or her income, or
You do not want to be responsible
for any taxes due if your spouse doesn't
have enough tax withheld or doesn't pay
enough estimated tax.
See the instructions for line 3. Also see
Innocent Spouse Relief under General
Information, later.
Nonresident aliens and dualstatus ali
ens. Generally, a married couple can't
file a joint return if either spouse is a
nonresident alien at any time during the
year. However, if you were a nonresi-
dent alien or a dual-status alien and were
married to a U.S. citizen or resident ali-
en at the end of 2016, you can elect to
be treated as a resident alien and file a
joint return. See Pub. 519 for details.
Line 3
Married Filing Separately
If you are married and file a separate re-
turn, you generally report only your own
income, exemptions, deductions, and
credits. Generally, you are responsible
only for the tax on your own income.
Different rules apply to people in com-
munity property states; see Pub. 555.
However, you will usually pay more
tax than if you use another filing status
for which you qualify. Also, if you file a
separate return, you can't take the stu-
dent loan interest deduction, the tuition
and fees deduction, the education cred-
its, or the earned income credit. You al-
so can't take the standard deduction if
your spouse itemizes deductions.
Be sure to enter your spouse's SSN or
ITIN on Form 1040. If your spouse
doesn't have and isn't required to have
an SSN or ITIN, enter “NRA.”
You may be able to file as head
of household if you had a child
living with you and you lived
apart from your spouse during the last 6
months of 2016. See Married persons
who live apart.
Line 4
Head of Household
This filing status is for unmarried indi-
viduals who provide a home for certain
other persons. You are considered un-
married for this purpose if any of the
following applies.
You were legally separated accord-
ing to your state law under a decree of
divorce or separate maintenance at the
end of 2016. But if, at the end of 2016,
your divorce wasn't final (an interlocuto-
ry decree), you are considered married.
You are married but lived apart
from your spouse for the last 6 months
of 2016 and you meet the other rules un-
der Married persons who live apart.
You are married to a nonresident
alien at any time during the year and you
do not choose to treat him or her as a
resident alien.
Check the box on line 4 only if you are
unmarried (or considered unmarried)
and either Test 1 or Test 2 applies.
Test 1. You paid over half the cost of
keeping up a home that was the main
home for all of 2016 of your parent
whom you can claim as a dependent on
line 6c, except under a multiple support
agreement (see the line 6c instructions).
Your parent didn't have to live with you.
Test 2. You paid over half the cost of
keeping up a home in which you lived
and in which one of the following also
lived for more than half of the year (if
half or less, see Exception to time lived
with you).
1. Any person whom you can claim
as a dependent on line 6c. But do not in-
clude:
a. Your child whom you claim as
your dependent because of the rule for
Children of divorced or separated pa
rents in the line 6c instructions,
b. Any person who is your depend-
ent only because he or she lived with
you for all of 2016, or
TIP
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c. Any person you claimed as a de-
pendent under a multiple support agree-
ment. See the line 6c instructions.
2. Your unmarried qualifying child
who isn't your dependent.
3. Your married qualifying child
who isn't your dependent only because
you can be claimed as a dependent on
line 6c of someone else's 2016 return.
4. Your qualifying child who, even
though you are the custodial parent, isn't
your dependent because of the rule for
Children of divorced or separated pa
rents in the line 6c instructions.
If the child isn't claimed as your de-
pendent on line 6c, enter the child's
name on line 4. If you do not enter the
name, it will take us longer to process
your return.
Qualifying child. To find out if some-
one is your qualifying child, see Step 1
of the line 6c instructions.
Dependent. To find out if someone is
your dependent, see the instructions for
line 6c.
Exception to time lived with you.
Temporary absences by you or the other
person for special circumstances, such
as school, vacation, business, medical
care, military service, or detention in a
juvenile facility, count as time lived in
the home. Also see Kidnapped child in
the line 6c instructions, if applicable.
If the person for whom you kept up a
home was born or died in 2016, you still
may be able to file as head of household.
If the person is your qualifying child, the
child must have lived with you for more
than half the part of the year he or she
was alive. If the person is anyone else,
see Pub. 501.
Keeping up a home. To find out what
is included in the cost of keeping up a
home, see Pub. 501.
If you used payments you received
under Temporary Assistance for Needy
Families (TANF) or other public assis-
tance programs to pay part of the cost of
keeping up your home, you can't count
them as money you paid. However, you
must include them in the total cost of
keeping up your home to figure if you
paid over half the cost.
Married persons who live apart. Even
if you were not divorced or legally sepa-
rated at the end of 2016, you are consid-
ered unmarried if all of the following
apply.
You lived apart from your spouse
for the last 6 months of 2016. Tempora-
ry absences for special circumstances,
such as for business, medical care,
school, or military service, count as time
lived in the home.
You file a separate return from
your spouse.
You paid over half the cost of
keeping up your home for 2016.
Your home was the main home of
your child, stepchild, or foster child for
more than half of 2016 (if half or less,
see Exception to time lived with you,
earlier).
You can claim this child as your
dependent or could claim the child ex-
cept that the child's other parent can
claim him or her under the rule for Chil
dren of divorced or separated parents in
the line 6c instructions.
Adopted child. An adopted child is
always treated as your own child. An
adopted child includes a child lawfully
placed with you for legal adoption.
Foster child. A foster child is any
child placed with you by an authorized
placement agency or by judgment, de-
cree, or other order of any court of com-
petent jurisdiction.
Line 5
Qualifying Widow(er) With
Dependent Child
You can check the box on line 5 and use
joint return tax rates for 2016 if all of
the following apply.
1. Your spouse died in 2014 or 2015
and you didn't remarry before the end of
2016.
2. You have a child or stepchild you
can claim as a dependent on line 6c.
This doesn't include a foster child.
3. This child lived in your home for
all of 2016. If the child didn't live with
you for the required time, see Exception
to time lived with you, later.
4. You paid over half the cost of
keeping up your home.
5. You could have filed a joint re-
turn with your spouse the year he or she
died, even if you didn't actually do so.
If your spouse died in 2016, you can't
file as qualifying widow(er) with de-
pendent child. Instead, see the instruc-
tions for line 2.
Adopted child. An adopted child is al-
ways treated as your own child. An
adopted child includes a child lawfully
placed with you for legal adoption.
Dependent. To find out if someone is
your dependent, see the instructions for
line 6c.
Exception to time lived with you.
Temporary absences by you or the child
for special circumstances, such as
school, vacation, business, medical care,
military service, or detention in a juve-
nile facility, count as time lived in the
home. Also see Kidnapped child in the
line 6c instructions, if applicable.
A child is considered to have lived
with you for all of 2016 if the child was
born or died in 2016 and your home was
the child's home for the entire time he or
she was alive.
Keeping up a home. To find out what
is included in the cost of keeping up a
home, see Pub. 501.
If you used payments you received
under Temporary Assistance for Needy
Families (TANF) or other public assis-
tance programs to pay part of the cost of
keeping up your home, you can't count
them as money you paid. However, you
must include them in the total cost of
keeping up your home to figure if you
paid over half the cost.
Exemptions
You usually can deduct $4,050 on
line 42 for each exemption you can take.
Line 6b
Spouse
Check the box on line 6b if either of the
following applies.
1. Your filing status is married filing
jointly and your spouse can't be claimed
as a dependent on another person's re-
turn.
2. You were married at the end of
2016, your filing status is married filing
separately or head of household, and
both of the following apply.
a. Your spouse had no income and
isn't filing a return.
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b. Your spouse can't be claimed as a
dependent on another person's return.
If your filing status is head of house-
hold and you check the box on line 6b,
enter the name of your spouse on the
dotted line next to line 6b. Also, enter
your spouse's social security number in
the space provided at the top of your re-
turn. If you became divorced or legally
separated during 2016, you can't take an
exemption for your former spouse.
Death of your spouse. If your spouse
died in 2016 and you didn't remarry by
the end of 2016, check the box on
line 6b if you could have taken an ex-
emption for your spouse on the date of
death. For other filing instructions, see
Death of a Taxpayer under General In
formation, later.
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2016 Form 1040—Line 6c
Line 6c—Dependents
Dependents and Qualifying Child for Child
Tax Credit
Follow the steps below to find out if a person qualifies as your
dependent, qualifies you to take the child tax credit, or both. If
you have more than four dependents, check the box to the left of
line 6c and include a statement showing the information re-
quired in columns (1) through (4).
Do You Have a Qualifying
Child?
A qualifying child is a child who is your...
Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister,
half brother, half sister, or a descendant of any of them (for example, your
grandchild, niece, or nephew)
AND
was ...
Under age 19 at the end of 2016 and younger than you
(or your spouse, if filing jointly)
or
Under age 24 at the end of 2016, a student (defined later), and younger than
you (or your spouse, if filing jointly)
or
Any age and permanently and totally disabled (defined later)
AND
Who didn't provide over half of his or her own support for 2016 (see Pub.
501)
AND
Who isn't filing a joint return for 2016
or is filing a joint return for 2016 only to claim a refund of withheld income
tax or estimated tax paid (see Pub. 501 for details and examples)
AND
Who lived with you for more than half of 2016. If the child didn't live with
you for the required time, see Exception to time lived with you, later.
CAUTION
!
If the child meets the conditions to be a qualifying child of
any other person (other than your spouse if filing jointly) for
2016, see Qualifying child of more than one person, later.
Step 1
1. Do you have a child who meets the conditions to be your
qualifying child?
Yes. Go to Step 2. No. Go to Step 4.
Is Your Qualifying Child Your
Dependent?
1. Was the child a U.S. citizen, U.S. national, U.S. resident
alien, or a resident of Canada or Mexico? (See Pub. 519 for
the definition of a U.S. national or U.S. resident alien. If the
child was adopted, see Exception to citizen test, later.)
Yes. Continue
䊲
No.
STOP
You can't claim this child
as a dependent.
2. Was the child married?
Yes. See Married
person, later.
No. Continue
䊲
3. Could you, or your spouse if filing jointly, be claimed as a
dependent on someone else's 2016 tax return? See Steps 1,
2, and 4.
Yes. You can't claim
any dependents. Go to
Form 1040, line 7.
No. You can claim this
child as a dependent.
Complete Form 1040,
line 6c, columns (1)
through (3) for this child.
Then, go to Step 3.
Does Your Qualifying Child
Qualify You for the Child Tax
Credit?
1. Was the child under age 17 at the end of 2016?
Yes. Continue
䊲
No.
STOP
This child isn't a
qualifying child for the
child tax credit.
2. Was the child a U.S. citizen, U.S. national, or U.S. resident
alien? (See Pub. 519 for the definition of a U.S. national or
U.S. resident alien. If the child was adopted, see Exception
to citizen test, later.)
Yes. This child is a
qualifying child for the
child tax credit. Check
the box on Form 1040,
line 6c, column (4).
No.
STOP
This child isn't a
qualifying child for the
child tax credit.
Step 2
Step 3
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2016 Form 1040—Line 6c
Is Your Qualifying Relative
Your Dependent?
A qualifying relative is a person who is your...
Son, daughter, stepchild, foster child, or a descendant of any of them
(for example, your grandchild)
or
Brother, sister, half brother, half sister, or a son or daughter of any
of them (for example, your niece or nephew)
or
Father, mother, or an ancestor or sibling of either of them (for
example, your grandmother, grandfather, aunt, or uncle)
or
Stepbrother, stepsister, stepfather, stepmother, son-in-law,
daughter-in-law, father-in-law, mother-in-law, brother-in-law, or
sister-in-law
or
Any other person (other than your spouse) who lived with you all
year as a member of your household if your relationship didn't
violate local law. If the person didn't live with you for the required
time, see Exception to time lived with you, later.
AND
Who wasn't a qualifying child (see Step 1) of any taxpayer for 2016.
For this purpose, a person isn't a taxpayer if he or she isn't required
to file a U.S. income tax return and either doesn't file such a return
or files only to get a refund of withheld income tax or estimated tax
paid. See Pub. 501 for details and examples.
AND
Who had gross income of less than $4,050 in 2016. If the person
was permanently and totally disabled, see Exception to gross income
test, later.
AND
For whom you provided over half of his or her support in 2016. But
see Children of divorced or separated parents, Multiple support
agreements, and Kidnapped child, later.
1. Does any person meet the conditions to be your qualifying
relative?
Yes. Continue
䊲
No.
STOP
Go to Form 1040, line 7.
Step 4 2. Was your qualifying relative a U.S. citizen, U.S. national,
U.S. resident alien, or a resident of Canada or Mexico? (See
Pub. 519 for the definition of a U.S. national or U.S.
resident alien. If your qualifying relative was adopted, see
Exception to citizen test, later.)
Yes. Continue
䊲
No.
STOP
You can't claim this
person as a dependent.
3. Was your qualifying relative married?
Yes. See Married
person, later.
No. Continue
䊲
4. Could you, or your spouse if filing jointly, be claimed as a
dependent on someone else's 2016 tax return? See Steps 1,
2, and 4.
Yes.
STOP
You can't claim any
dependents. Go to Form
1040, line 7.
No. You can claim this
person as a dependent.
Complete Form 1040,
line 6c, columns (1)
through (3). Do not
check the box on Form
1040, line 6c, column
(4).
Definitions and Special Rules
Adopted child. An adopted child is always treated as your own
child. An adopted child includes a child lawfully placed with
you for legal adoption.
Adoption taxpayer identification numbers (ATINs). If you
have a dependent who was placed with you for legal adoption
and you do not know his or her SSN, you must get an ATIN for
the dependent from the IRS. See Form W-7A for details. If the
dependent isn't a U.S. citizen or resident alien, apply for an
ITIN instead, using Form W-7.
If you didn't have an SSN (or ITIN) by the due date of your
2016 return (including extensions), you can't claim the child tax
credit on either your original or an amended 2016 return, even if
you later get an SSN (or ITIN). Also, no child tax credit is al-
lowed on your original or an amended 2016 return with respect
to a child who didn't have an SSN, ATIN, or ITIN by the due
date of your return (including extensions), even if that child lat-
er gets one of those numbers.
If you apply for an ATIN or an ITIN on or before the due
date of your 2016 return (including extensions) and the IRS is-
sues you an ATIN or an ITIN as a result of the application, the
IRS will consider your ATIN or ITIN as issued on or before the
due date of your return.
Children of divorced or separated parents. A child will be
treated as the qualifying child or qualifying relative of his or her
noncustodial parent (defined later) if all of the following condi-
tions apply.
1. The parents are divorced, legally separated, separated un-
der a written separation agreement, or lived apart at all times
during the last 6 months of 2016 (whether or not they are or
were married).
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2016 Form 1040—Line 6c
2. The child received over half of his or her support for
2016 from the parents (and the rules on Multiple support agree
ments, later, do not apply). Support of a child received from a
parent's spouse is treated as provided by the parent.
3. The child is in custody of one or both of the parents for
more than half of 2016.
4. Either of the following applies.
a. The custodial parent signs Form 8332 or a substantially
similar statement that he or she won't claim the child as a de-
pendent for 2016, and the noncustodial parent includes a copy
of the form or statement with his or her return. If the divorce de-
cree or separation agreement went into effect after 1984 and be-
fore 2009, the noncustodial parent may be able to include cer-
tain pages from the decree or agreement instead of Form 8332.
See Post1984 and pre2009 decree or agreement and
Post2008 decree or agreement.
b. A pre-1985 decree of divorce or separate maintenance or
written separation agreement between the parents provides that
the noncustodial parent can claim the child as a dependent, and
the noncustodial parent provides at least $600 for support of the
child during 2016.
If conditions (1) through (4) apply, only the noncustodial pa-
rent can claim the child for purposes of the dependency exemp-
tion (line 6c) and the child tax credits (lines 52 and 67). Howev-
er, this doesn't allow the noncustodial parent to claim head of
household filing status, the credit for child and dependent care
expenses, the exclusion for dependent care benefits, the earned
income credit, or the health coverage tax credit. See Pub. 501
for details.
Example. Even if conditions (1) through (4) are met and the
custodial parent signs Form 8332 or a substantially similar
statement that he or she will not claim the child as a dependent
for 2016, this doesn't allow the noncustodial parent to claim the
child as a qualifying child for the earned income credit. The
custodial parent or another taxpayer, if eligible, can claim the
child for the earned income credit.
Custodial and noncustodial parents. The custodial parent is
the parent with whom the child lived for the greater number of
nights in 2016. The noncustodial parent is the other parent. If
the child was with each parent for an equal number of nights,
the custodial parent is the parent with the higher adjusted gross
income. See Pub. 501 for an exception for a parent who works
at night, rules for a child who is emancipated under state law,
and other details.
Post-1984 and pre-2009 decree or agreement. The decree
or agreement must state all three of the following.
1. The noncustodial parent can claim the child as a depend-
ent without regard to any condition, such as payment of support.
2. The other parent won't claim the child as a dependent.
3. The years for which the claim is released.
The noncustodial parent must include all of the following pa-
ges from the decree or agreement.
Cover page (include the other parent's SSN on that page).
The pages that include all the information identified in (1)
through (3) above.
Signature page with the other parent's signature and date
of agreement.
You must include the required information even if you
filed it with your return in an earlier year.
Post-2008 decree or agreement. If the divorce decree or
separation agreement went into effect after 2008, the noncusto-
dial parent can't include pages from the decree or agreement in-
stead of Form 8332. The custodial parent must sign either Form
8332 or a substantially similar statement the only purpose of
which is to release the custodial parent's claim to an exemption
for a child, and the noncustodial parent must include a copy
with his or her return. The form or statement must release the
custodial parent's claim to the child without any conditions. For
example, the release must not depend on the noncustodial pa-
rent paying support.
Release of exemption revoked. A custodial parent who has
revoked his or her previous release of a claim to exemption for
a child must include a copy of the revocation with his or her re-
turn. For details, see Form 8332.
Exception to citizen test. If you are a U.S. citizen or U.S. na-
tional and your adopted child lived with you all year as a mem-
ber of your household, that child meets the requirement to be a
U.S. citizen in Step 2, question 1; Step 3, question 2; and Step
4, question 2.
Exception to gross income test. If your relative (including a
person who lived with you all year as a member of your house-
hold) is permanently and totally disabled (defined later), certain
income for services performed at a sheltered workshop may be
excluded for this test. For details, see Pub. 501.
Exception to time lived with you. Temporary absences by you
or the other person for special circumstances, such as school,
vacation, business, medical care, military service, or detention
in a juvenile facility, count as time the person lived with you.
Also see Children of divorced or separated parents, earlier, or
Kidnapped child, later.
If the person meets all other requirements to be your qualify-
ing child but was born or died in 2016, the person is considered
to have lived with you for more than half of 2016 if your home
was this person's home for more than half the time he or she
was alive in 2016.
Any other person is considered to have lived with you for all
of 2016 if the person was born or died in 2016 and your home
was this person's home for the entire time he or she was alive in
2016.
Foster child. A foster child is any child placed with you by an
authorized placement agency or by judgment, decree, or other
order of any court of competent jurisdiction.
Kidnapped child. If your child is presumed by law enforce-
ment authorities to have been kidnapped by someone who isn't a
family member, you may be able to take the child into account
in determining your eligibility for head of household or qualify-
ing widow(er) filing status, the dependency exemption, the
child tax credit, and the earned income credit (EIC). For details,
see Pub. 501 (Pub. 596 for the EIC).
CAUTION
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2016 Form 1040—Line 6c
Married person. If the person is married and files a joint re-
turn, you can't claim that person as your dependent. However, if
the person is married but doesn't file a joint return or files a
joint return only to claim a refund of withheld income tax or es-
timated tax paid, you may be able to claim him or her as a de-
pendent. (See Pub. 501 for details and examples.) In that case,
go to Step 2, question 3 (for a qualifying child) or Step 4, ques-
tion 4 (for a qualifying relative).
Multiple support agreements. If no one person contributed
over half of the support of your relative (or a person who lived
with you all year as a member of your household) but you and
another person(s) provided more than half of your relative's
support, special rules may apply that would treat you as having
provided over half of the support. For details, see Pub. 501.
Permanently and totally disabled. A person is permanently
and totally disabled if, at any time in 2016, the person can't en-
gage in any substantial gainful activity because of a physical or
mental condition and a doctor has determined that this condition
has lasted or can be expected to last continuously for at least a
year or can be expected to lead to death.
Qualifying child of more than one person. Even if a child
meets the conditions to be the qualifying child of more than one
person, only one person can claim the child as a qualifying child
for all of the following tax benefits, unless the special rule for
Children of divorced or separated parents, described earlier,
applies.
1. Dependency exemption (line 6c).
2. Child tax credits (lines 52 and 67).
3. Head of household filing status (line 4).
4. Credit for child and dependent care expenses (line 49).
5. Exclusion for dependent care benefits (Form 2441, Part
III).
6. Earned income credit (lines 66a and 66b).
No other person can take any of the six tax benefits just listed
unless he or she has a different qualifying child. If you and any
other person can claim the child as a qualifying child, the fol-
lowing rules apply.
If only one of the persons is the child's parent, the child is
treated as the qualifying child of the parent.
If the parents file a joint return together and can claim the
child as a qualifying child, the child is treated as the qualifying
child of the parents.
If the parents do not file a joint return together but both
parents claim the child as a qualifying child, the IRS will treat
the child as the qualifying child of the parent with whom the
child lived for the longer period of time in 2016. If the child
lived with each parent for the same amount of time, the IRS will
treat the child as the qualifying child of the parent who had the
higher adjusted gross income (AGI) for 2016.
If no parent can claim the child as a qualifying child, the
child is treated as the qualifying child of the person who had the
highest AGI for 2016.
If a parent can claim the child as a qualifying child but no
parent does so claim the child, the child is treated as the qualify-
ing child of the person who had the highest AGI for 2016, but
only if that person's AGI is higher than the highest AGI of any
parent of the child who can claim the child.
Example. Your daughter meets the conditions to be a quali-
fying child for both you and your mother. Your daughter doesn't
meet the conditions to be a qualifying child of any other person,
including her other parent. Under the rules just described, you
can claim your daughter as a qualifying child for all of the six
tax benefits just listed for which you otherwise qualify. Your
mother can't claim any of those six tax benefits unless she has a
different qualifying child. However, if your mother's AGI is
higher than yours and you do not claim your daughter as a qual-
ifying child, your daughter is the qualifying child of your moth-
er.
For more details and examples, see Pub. 501.
If you will be claiming the child as a qualifying child, go to
Step 2. Otherwise, stop; you can't claim any benefits based on
this child.
Social security number. You must enter each dependent's so-
cial security number (SSN). Be sure the name and SSN entered
agree with the dependent's social security card. Otherwise, at
the time we process your return, we may disallow the exemp-
tion claimed for the dependent and reduce or disallow any other
tax benefits (such as the child tax credit) based on that depend-
ent. If the name or SSN on the dependent's social security card
isn't correct or you need to get an SSN for your dependent, con-
tact the Social Security Administration. See Social Security
Number (SSN), earlier. If your dependent won't have a number
by the date your return is due, see What if You Can't File on
Time? earlier.
If your dependent child was born and died in 2016 and you
do not have an SSN for the child, enter “Died” in column (2)
and include a copy of the child's birth certificate, death certifi-
cate, or hospital records. The document must show the child
was born alive.
If you didn't have an SSN (or ITIN) by the due date of your
2016 return (including extensions), you can't claim the child tax
credit on either your original or an amended 2016 return, even if
you later get an SSN (or ITIN). Also, no child tax credit is al-
lowed on your original or an amended 2016 return with respect
to a child who didn't have an SSN, ATIN, or ITIN by the due
date of your return (including extensions), even if that child lat-
er gets one of those numbers.
If you apply for an ATIN or an ITIN on or before the due
date of your 2016 return (including extensions) and the IRS is-
sues you an ATIN or an ITIN as a result of the application, the
IRS will consider your ATIN or ITIN as issued on or before the
due date of your return.
Student. A student is a child who during any part of 5 calendar
months of 2016 was 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 doesn't include an
on-the-job training course, correspondence school, or school of-
fering courses only through the Internet.
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2016 Form 1040—Line 7
Income
Generally, you must report all income
except income that is exempt from tax
by law. For details, see the following in-
structions, especially the instructions for
lines 7 through 21. Also see Pub. 525.
Foreign-Source Income
You must report unearned income, such
as interest, dividends, and pensions,
from sources outside the United States
unless exempt by law or a tax treaty.
You must also report earned income,
such as wages and tips, from sources
outside the United States.
If you worked abroad, you may be
able to exclude part or all of your for-
eign earned income. For details, see
Pub. 54 and Form 2555 or 2555-EZ.
Foreign retirement plans. If you were
a beneficiary of a foreign retirement
plan, you may have to report the undis-
tributed income earned in your plan.
However, if you were the beneficiary of
a Canadian registered retirement plan,
see Rev. Proc. 2014-55, 2014-44 I.R.B.
753, available at IRS.gov//irb/
201444_IRB/ar10.html, to find out if
you can elect to defer tax on the undis-
tributed income.
Report distributions from foreign
pension plans on lines 16a and 16b.
Foreign accounts and trusts. You
must complete Part III of Schedule B if
you:
Had a foreign account, or
Received a distribution from, or
were a grantor of, or a transferor to, a
foreign trust.
Foreign financial assets. If you had
foreign financial assets in 2016, you
may have to file Form 8938. See Form
8938 and its instructions.
Chapter 11 Bankruptcy
Cases
If you are a debtor in a chapter 11 bank-
ruptcy case, income taxable to the bank-
ruptcy estate and reported on the estate's
income tax return includes:
Earnings from services you per-
formed after the beginning of the case
(both wages and self-employment in-
come), and
Income from property described in
section 541 of title 11 of the U.S. Code
that you either owned when the case be-
gan or that you acquired after the case
began and before the case was closed,
dismissed, or converted to a case under a
different chapter.
Because this income is taxable to the
estate, do not include this income on
your own individual income tax return.
The only exception is for purposes of
figuring your self-employment tax. For
that purpose, you must take into account
all your self-employment income for the
year from services performed both be-
fore and after the beginning of the case.
Also, you (or the trustee, if one is ap-
pointed) must allocate between you and
the bankruptcy estate the wages, salary,
or other compensation and withheld in-
come tax reported to you on Form W-2.
A similar allocation is required for in-
come and withheld income tax reported
to you on Forms 1099. You must also
include a statement that indicates you
filed a chapter 11 case and that explains
how income and withheld income tax re-
ported to you on Forms W-2 and 1099
are allocated between you and the estate.
For more details, including acceptable
allocation methods, see Notice 2006-83,
2006-40 I.R.B. 596, available at
IRS.gov/irb/200640_IRB/ar12.html.
Community Property States
Community property states are Arizona,
California, Idaho, Louisiana, Nevada,
New Mexico, Texas, Washington, and
Wisconsin. If you and your spouse lived
in a community property state, you must
usually follow state law to determine
what is community income and what is
separate income. For details, see Form
8958 and Pub. 555.
Nevada, Washington, and California
domestic partners. A registered do-
mestic partner in Nevada, Washington,
or California generally must report half
the combined community income of the
individual and his or her domestic part-
ner. See Form 8958 and Pub. 555.
Rounding Off to Whole
Dollars
You can round off cents to whole dollars
on your return and schedules. If you do
round to whole dollars, you must round
all amounts. To round, drop amounts un-
der 50 cents and increase amounts from
50 to 99 cents to the next dollar. For ex-
ample, $1.39 becomes $1 and $2.50 be-
comes $3.
If you have to add two or more
amounts to figure the amount to enter on
a line, include cents when adding the
amounts and round off only the total.
Line 7
Wages, Salaries, Tips, etc.
Enter the total of your wages, salaries,
tips, etc. If a joint return, also include
your spouse's income. For most people,
the amount to enter on this line should
be shown in box 1 of their Form(s) W-2.
But the following types of income must
also be included in the total on line 7.
All wages received as a household
employee. An employer is not required
to provide a Form W-2 to you if he or
she paid you wages of less then $2,000
in 2016. If you received wages as a
household employee and you didn’t re-
ceive a Form W-2 because an employer
paid you less than $2,000 in 2016, enter
“HSH” and the amount not reported to
you on a Form W-2 in the space to the
left of line 7. For information on em-
ployment taxes for household employ-
ees, see Tax Topic 756.
Tip income you didn't report to
your employer. This should include any
allocated tips shown in box 8 on your
Form(s) W-2 unless you can prove that
your unreported tips are less than the
amount in box 8. Allocated tips aren't in-
cluded as income in box 1. See Pub. 531
for more details. Also include the value
of any noncash tips you received, such
as tickets, passes, or other items of val-
ue. Although you do not report these
noncash tips to your employer, you must
report them on line 7.
You may owe social security
and Medicare or railroad re
tirement (RRTA) tax on unre
ported tips. See the instructions for
line 58.
Dependent care benefits, which
should be shown in box 10 of your
Form(s) W-2. But first complete Form
2441 to see if you can exclude part or all
of the benefits.
Employer-provided adoption bene-
fits, which should be shown in box 12 of
your Form(s) W-2 with code T. But see
the Instructions for Form 8839 to find
out if you can exclude part or all of the
benefits. You may also be able to ex-
clude amounts if you adopted a child
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2016 Form 1040—Lines 7 Through 9a
with special needs and the adoption be-
came final in 2016.
Scholarship and fellowship grants
not reported on Form W-2. Also, enter
“SCH” and the amount on the dotted
line next to line 7. However, if you were
a degree candidate, include on line 7 on-
ly the amounts you used for expenses
other than tuition and course-related ex-
penses. For example, amounts used for
room, board, and travel must be reported
on line 7.
Excess salary deferrals. The
amount deferred should be shown in
box 12 of your Form W-2, and the “Re-
tirement plan” box in box 13 should be
checked. If the total amount you (or
your spouse if filing jointly) deferred for
2016 under all plans was more than
$18,000 (excluding catch-up contribu-
tions as explained later), include the ex-
cess on line 7. This limit is (a) $12,500
if you have only SIMPLE plans, or (b)
$21,000 for section 403(b) plans if you
qualify for the 15-year rule in Pub. 571.
Although designated Roth contributions
are subject to this limit, do not include
the excess attributable to such contribu-
tions on line 7. They are already inclu-
ded as income in box 1 of your Form
W-2.
A higher limit may apply to partici-
pants in section 457(b) deferred com-
pensation plans for the 3 years before re-
tirement age. Contact your plan adminis-
trator for more information.
If you were age 50 or older at the end
of 2016, your employer may have al-
lowed an additional deferral (catch-up
contributions) of up to $6,000 ($3,000
for section 401(k)(11) and SIMPLE
plans). This additional deferral amount
isn't subject to the overall limit on elec-
tive deferrals.
You can't deduct the amount
deferred. It isn't included as in
come in box 1 of your Form
W2.
Disability pensions shown on
Form 1099-R if you have not reached
the minimum retirement age set by your
employer. But see Insurance Premiums
for Retired Public Safety Officers in the
instructions for lines 16a and 16b. Disa-
bility pensions received after you reach
minimum retirement age and other pay-
ments shown on Form 1099-R (other
than payments from an IRA*) are repor-
CAUTION
!
ted on lines 16a and 16b. Payments from
an IRA are reported on lines 15a and
15b.
Corrective distributions from a re-
tirement plan shown on Form 1099-R of
excess salary deferrals and excess con-
tributions (plus earnings). But do not in-
clude distributions from an IRA* on
line 7. Instead, report distributions from
an IRA on lines 15a and 15b.
Wages from Form 8919, line 6.
*This includes a Roth, SEP, or SIMPLE IRA.
Were You a Statutory Employee?
If you were, the “Statutory employee”
box in box 13 of your Form W-2 should
be checked. Statutory employees include
full-time life insurance salespeople and
certain agent or commission drivers,
traveling salespeople, and homeworkers.
If you have related business expenses to
deduct, report the amount shown in
box 1 of your Form W-2 on Schedule C
or C-EZ along with your expenses.
Missing or Incorrect Form W-2?
Your employer is required to provide or
send Form W-2 to you no later than
January 31, 2017. If you do not receive
it by early February, use Tax Topic 154
to find out what to do. Even if you do
not get a Form W-2, you must still re-
port your earnings on line 7. If you lose
your Form W-2 or it is incorrect, ask
your employer for a new one.
Line 8a
Taxable Interest
Each payer should send you a Form
1099-INT or Form 1099-OID. Enter
your total taxable interest income on
line 8a. But you must fill in and attach
Schedule B if the total is over $1,500 or
any of the other conditions listed at the
beginning of the Schedule B instructions
apply to you.
For more details about reporting taxa-
ble interest, including market discount
on bonds and adjustments for amortiza-
ble bond premium, see Pub. 550.
Interest credited in 2016 on deposits
that you couldn't withdraw because of
the bankruptcy or insolvency of the fi-
nancial institution may not have to be
included in your 2016 income. For de-
tails, see Pub. 550.
If you get a 2016 Form
1099INT for U.S. savings bond
interest that includes amounts
you reported before 2016, see Pub. 550.
Line 8b
Tax-Exempt Interest
If you received any tax-exempt interest,
such as from municipal bonds, each pay-
er should send you a Form 1099-INT.
Your tax-exempt interest should be
shown in box 8 of Form 1099-INT. En-
ter the total on line 8b. However, if you
acquired a tax-exempt bond at a premi-
um, only report the net amount of
tax-exempt interest on line 8b (that is,
the excess of the tax-exempt interest re-
ceived during the year over the amor-
tized bond premium for the year). See
Pub. 550 for more information. Also in-
clude on line 8b any exempt-interest
dividends from a mutual fund or other
regulated investment company. This
amount should be shown in box 10 of
Form 1099-DIV.
Do not include interest earned on
your IRA, health savings account, Arch-
er or Medicare Advantage MSA, or
Coverdell education savings account.
Line 9a
Ordinary Dividends
Each payer should send you a Form
1099-DIV. Enter your total ordinary div-
idends on line 9a. This amount should
be shown in box 1a of Form(s)
1099-DIV.
You must fill in and attach Sched-
ule B if the total is over $1,500 or you
received, as a nominee, ordinary divi-
dends that actually belong to someone
else.
Nondividend Distributions
Some distributions are a return of your
cost (or other basis). They won't be
taxed until you recover your cost (or
other basis). You must reduce your cost
(or other basis) by these distributions.
After you get back all of your cost (or
other basis), you must report these dis-
tributions as capital gains on Form 8949.
For details, see Pub. 550.
TIP
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2016 Form 1040—Lines 9a Through 10
Dividends on insurance policies
are a partial return of the pre
miums you paid. Do not report
them as dividends. Include them in in
come on line 21 only if they exceed the
total of all net premiums you paid for
the contract.
Line 9b
Qualified Dividends
Enter your total qualified dividends on
line 9b. Qualified dividends are also in-
cluded in the ordinary dividend total re-
quired to be shown on line 9a. Qualified
dividends are eligible for a lower tax
rate than other ordinary income. Gener-
ally, these dividends are shown in
box 1b of Form(s) 1099-DIV. See Pub.
550 for the definition of qualified divi-
dends if you received dividends not re-
ported on Form 1099-DIV.
Exception. Some dividends may be re-
ported as qualified dividends in box 1b
of Form 1099-DIV but aren't qualified
dividends. These include:
Dividends you received as a nomi-
nee. See the Schedule B instructions.
Dividends you received on any
share of stock that you held for less than
61 days during the 121-day period that
began 60 days before the ex-dividend
date. The ex-dividend date is the first
date following the declaration of a divi-
dend on which the purchaser of a stock
isn't entitled to receive the next dividend
payment. When counting the number of
days you held the stock, include the day
you disposed of the stock but not the day
you acquired it. See the examples that
follow. Also, when counting the number
of days you held the stock, you can't
count certain days during which your
risk of loss was diminished. See Pub.
550 for more details.
Dividends attributable to periods
totaling more than 366 days that you re-
ceived on any share of preferred stock
held for less than 91 days during the
181-day period that began 90 days be-
fore the ex-dividend date. When count-
ing the number of days you held the
stock, you can't count certain days dur-
ing which your risk of loss was dimin-
ished. See Pub. 550 for more details.
Preferred dividends attributable to peri-
ods totaling less than 367 days are sub-
ject to the 61-day holding period rule
just described.
TIP
Dividends on any share of stock to
the extent that you are under an obliga-
tion (including a short sale) to make re-
lated payments with respect to positions
in substantially similar or related proper-
ty.
Payments in lieu of dividends, but
only if you know or have reason to
know that the payments aren't qualified
dividends.
Example 1. You bought 5,000 shares
of XYZ Corp. common stock on July 8,
2016. XYZ Corp. paid a cash dividend
of 10 cents per share. The ex-dividend
date was July 16, 2016. Your Form
1099-DIV from XYZ Corp. shows $500
in box 1a (ordinary dividends) and in
box 1b (qualified dividends). However,
you sold the 5,000 shares on August 11,
2016. You held your shares of XYZ
Corp. for only 34 days of the 121-day
period (from July 9, 2016, through Au-
gust 11, 2016). The 121-day period be-
gan on May 17, 2016 (60 days before
the ex-dividend date), and ended on
September 14, 2016. You have no quali-
fied dividends from XYZ Corp. because
you held the XYZ stock for less than 61
days.
Example 2. The facts are the same as
in Example 1 except that you bought the
stock on July 15, 2016 (the day before
the ex-dividend date), and you sold the
stock on September 16, 2016. You held
the stock for 63 days (from July 16,
2016, through September 16, 2016). The
$500 of qualified dividends shown in
box 1b of Form 1099-DIV are all quali-
fied dividends because you held the
stock for 61 days of the 121-day period
(from July 16, 2016, through September
14, 2016).
Example 3. You bought 10,000
shares of ABC Mutual Fund common
stock on July 8, 2016. ABC Mutual
Fund paid a cash dividend of 10 cents a
share. The ex-dividend date was July 16,
2016. The ABC Mutual Fund advises
you that the part of the dividend eligible
to be treated as qualified dividends
equals 2 cents a share. Your Form
1099-DIV from ABC Mutual Fund
shows total ordinary dividends of $1,000
and qualified dividends of $200. How-
ever, you sold the 10,000 shares on Au-
gust 11, 2016. You have no qualified
dividends from ABC Mutual Fund be-
cause you held the ABC Mutual Fund
stock for less than 61 days.
Use the Qualified Dividends
and Capital Gain Tax Work
sheet or the Schedule D Tax
Worksheet, whichever applies, to figure
your tax. See the instructions for line 44
for details.
Line 10
Taxable Refunds, Credits, or
Offsets of State and Local
Income Taxes
None of your refund is taxable
if, in the year you paid the tax,
you either (a) didn't itemize de
ductions, or (b) elected to deduct state
and local general sales taxes instead of
state and local income taxes.
If you received a refund, credit, or offset
of state or local income taxes in 2016,
you may be required to report this
amount. If you didn't receive a Form
1099-G, check with the government
agency that made the payments to you.
Your 2016 Form 1099-G may have been
made available to you only in an elec-
tronic format, and you will need to get
instructions from the agency to retrieve
this document. Report any taxable re-
fund you received even if you didn't re-
ceive Form 1099-G.
If you chose to apply part or all of the
refund to your 2016 estimated state or
local income tax, the amount applied is
treated as received in 2016. If the refund
was for a tax you paid in 2015 and you
deducted state and local income taxes on
line 5 of your 2015 Schedule A, use the
State and Local Income Tax Refund
Worksheet in these instructions to see if
any of your refund is taxable.
Exception. See Itemized Deduction Re
coveries in Pub. 525 instead of using the
State and Local Income Tax Refund
Worksheet in these instructions if any of
the following applies.
1. You received a refund in 2016
that is for a tax year other than 2015.
2. You received a refund other than
an income tax refund, such as a general
sales tax or real property tax refund, in
2016 of an amount deducted or credit
claimed in an earlier year.
3. The amount on your 2015 Form
1040, line 42, was more than the amount
on your 2015 Form 1040, line 41.
TIP
TIP
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2016 Form 1040—Lines 10 Through 12
4. You had taxable income on your
2015 Form 1040, line 43, but no tax on
your Form 1040, line 44, because of the
0% tax rate on net capital gain and
qualified dividends in certain situations.
5. Your 2015 state and local income
tax refund is more than your 2015 state
and local income tax deduction minus
the amount you could have deducted as
your 2015 state and local general sales
taxes.
6. You made your last payment of
2015 estimated state or local income tax
in 2016.
7. You owed alternative minimum
tax in 2015.
8. You couldn't use the full amount
of credits you were entitled to in 2015
because the total credits were more than
the amount shown on your 2015 Form
1040, line 47.
9. You could be claimed as a de-
pendent by someone else in 2015.
10.
You received a refund because of
a jointly filed state or local income tax
return, but you aren't filing a joint 2016
Form 1040 with the same person.
11.
You had to use the Itemized De-
ductions Worksheet in the 2015 Instruc-
tions for Schedule A and both of the fol-
lowing apply.
a. You couldn't deduct all of the
amount on the 2015 Itemized Deduc-
tions Worksheet, line 1.
b. The amount on line 8 of that 2015
worksheet would be more than the
amount on line 4 of that worksheet if the
amount on line 4 were reduced by 80%
of the refund you received in 2016.
Line 11
Alimony Received
Enter amounts received as alimony or
separate maintenance. You must let the
person who made the payments know
your social security number. If you do
not, you may have to pay a penalty. For
more details, see Pub. 504.
Line 12
Business Income or (Loss)
If you operated a business or practiced
your profession as a sole proprietor, re-
port your income and expenses on
Schedule C or C-EZ.
State and Local Income Tax Refund Worksheet—Line 10 Keep for Your Records
Be sure you have read the Exception in the instructions for this line to see if you can use this
worksheet instead of Pub. 525 to figure if any of your refund is taxable.
Before you begin:
1. Enter the income tax refund from Form(s) 1099G (or similar statement). But don’t enter more than
the amount of your state and local income taxes shown on your 2015 Schedule A, line 5 ........... 1.
2. Enter your total itemized deductions from your 2015 Schedule A, line 29 .......... 2.
Note. If the filing status on your 2015 Form 1040 was married filing separately and
your spouse itemized deductions in 2015, skip lines 3 through 5, enter the amount
from line 2 on line 6, and go to line 7.
3. Enter the amount shown below for the filing status claimed on your
2015 Form 1040.
Single or married filing separately—$6,300
Married filing jointly or qualifying widow(er)—$12,600
Head of household—$9,250 3.
4. Did you fill in line 39a on your 2015 Form 1040?
No. Enter -0-.
4.
Yes. Multiply the number in the box on line 39a of your
2015 Form 1040 by $1,250 ($1,550 if your 2015
filing status was single or head of household).
5. Add lines 3 and 4 ......................................................... 5.
6. Is the amount on line 5 less than the amount on line 2?
No.
STOP
None of your refund is taxable.
Yes. Subtract line 5 from line 2 ........................................................ 6.
7. Taxable part of your refund. Enter the smaller of line 1 or line 6 here and on Form
1040, line 10 .......................................................................... 7.
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2016 Form 1040—Lines 13 Through 15b
Line 13
Capital Gain or (Loss)
If you sold a capital asset, such as a
stock or bond, you must complete and
attach Form 8949 and Schedule D.
Exception 1. You do not have to file
Form 8949 or Schedule D if both of the
following apply.
1. You have no capital losses, and
your only capital gains are capital gain
distributions from Form(s) 1099-DIV,
box 2a (or substitute statements).
2. None of the Form(s) 1099-DIV
(or substitute statements) have an
amount in box 2b (unrecaptured section
1250 gain), box 2c (section 1202 gain),
or box 2d (collectibles (28%) gain).
Exception 2. You must file Sched-
ule D, but generally do not have to file
Form 8949, if Exception 1 doesn't apply
and your only capital gains and losses
are:
Capital gain distributions,
A capital loss carryover from
2015,
A gain from Form 2439 or 6252 or
Part I of Form 4797,
A gain or loss from Form 4684,
6781, or 8824,
A gain or loss from a partnership,
S corporation, estate, or trust, or
Gains and losses from transactions
for which you received a Form 1099-B
(or substitute statement) that shows ba-
sis was reported to the IRS and for
which you do not need to make any ad-
justments in column (g) of Form 8949 or
enter any codes in column (f) of Form
8949.
If Exception 1 applies, enter your to-
tal capital gain distributions (from
box 2a of Form(s) 1099-DIV) on line 13
and check the box on that line. If you re-
ceived capital gain distributions as a
nominee (that is, they were paid to you
but actually belong to someone else), re-
port on line 13 only the amount that be-
longs to you. Include a statement show-
ing the full amount you received and the
amount you received as a nominee. See
the Schedule B instructions for filing re-
quirements for Forms 1099-DIV and
1096.
If you do not have to file Sched
ule D, use the Qualified Divi
dends and Capital Gain Tax
Worksheet in the line 44 instructions to
figure your tax.
Line 14
Other Gains or (Losses)
If you sold or exchanged assets used in a
trade or business, see the Instructions for
Form 4797.
Lines 15a and 15b
IRA Distributions
You should receive a Form 1099-R
showing the total amount of any distri-
bution from your IRA before income tax
or other deductions were withheld. This
amount should be shown in box 1 of
Form 1099-R. Unless otherwise noted in
the line 15a and 15b instructions, an
IRA includes a traditional IRA, Roth
IRA (including a myRA), simplified em-
ployee pension (SEP) IRA, and a sav-
ings incentive match plan for employees
(SIMPLE) IRA. Except as provided
next, leave line 15a blank and enter the
total distribution (from Form 1099-R,
box 1) on line 15b.
Exception 1. Enter the total distribution
on line 15a if you rolled over part or all
of the distribution from one:
Roth IRA to another Roth IRA, or
IRA (other than a Roth IRA) to a
qualified plan or another IRA (other
than a Roth IRA).
Also, enter “Rollover” next to
line 15b. If the total distribution was rol-
led over in a qualified rollover, enter -0-
on line 15b. If the total distribution
wasn't rolled over in a qualified rollover,
enter the part not rolled over on line 15b
unless Exception 2 applies to the part
not rolled over. Generally, a qualified
rollover must be made within 60 days
after the day you received the distribu-
tion. For more details on rollovers, see
Pub. 590-A and Pub. 590-B.
If you rolled over the distribution into
a qualified plan other than an IRA or
you made the rollover in 2017, include a
statement explaining what you did.
Exception 2. If any of the following ap-
ply, enter the total distribution on
line 15a and see Form 8606 and its in-
TIP
structions to figure the amount to enter
on line 15b.
1. You received a distribution from
an IRA (other than a Roth IRA) and you
made nondeductible contributions to any
of your traditional or SEP IRAs for 2016
or an earlier year. If you made nonde-
ductible contributions to these IRAs for
2016, also see Pub. 590-A and Pub.
590-B.
2. You received a distribution from
a Roth IRA. But if either (a) or (b) be-
low applies, enter -0- on line 15b; you
do not have to see Form 8606 or its in-
structions.
a. Distribution code T is shown in
box 7 of Form 1099-R and you made a
contribution (including a conversion) to
a Roth IRA for 2011 or an earlier year.
b. Distribution code Q is shown in
box 7 of Form 1099-R.
3. You converted part or all of a tra-
ditional, SEP, or SIMPLE IRA to a Roth
IRA in 2016.
4. You had a 2015 or 2016 IRA con-
tribution returned to you, with the rela-
ted earnings or less any loss, by the due
date (including extensions) of your tax
return for that year.
5. You made excess contributions to
your IRA for an earlier year and had
them returned to you in 2016.
6. You recharacterized part or all of
a contribution to a Roth IRA as a tradi-
tional IRA contribution, or vice versa.
Exception 3. If the distribution is a
qualified charitable distribution (QCD),
enter the total distribution on line 15a. If
the total amount distributed is a QCD,
enter -0- on line 15b. If only part of the
distribution is a QCD, enter the part that
is not a QCD on line 15b unless Excep
tion 2 applies to that part. Enter “QCD”
next to line 15b.
A QCD is a distribution made direct-
ly by the trustee of your IRA (other than
an ongoing SEP or SIMPLE IRA) to an
organization eligible to receive tax-de-
ductible contributions (with certain ex-
ceptions). You must have been at least
age 7012 when the distribution was
made.
Generally, your total QCDs for the
year can't be more than $100,000. (On a
joint return, your spouse can also have a
QCD of up to $100,000.) The amount of
the QCD is limited to the amount that
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2016 Form 1040—Lines 15b Through 16b
would otherwise be included in your in-
come. If your IRA includes nondeducti-
ble contributions, the distribution is first
considered to be paid out of otherwise
taxable income. See Pub. 590-A for de-
tails.
You can't claim a charitable
contribution deduction for any
QCD not included in your in
come.
Exception 4. If the distribution is a
health savings account (HSA) funding
distribution (HFD), enter the total distri-
bution on line 15a. If the total amount
distributed is an HFD and you elect to
exclude it from income, enter -0- on
line 15b. If only part of the distribution
is an HFD and you elect to exclude that
part from income, enter the part that isn't
an HFD on line 15b unless Exception 2
applies to that part. Enter “HFD” next to
line 15b.
An HFD is a distribution made di-
rectly by the trustee of your IRA (other
than an ongoing SEP or SIMPLE IRA)
to your HSA. If eligible, you generally
can elect to exclude an HFD from your
income once in your lifetime. You can't
exclude more than the limit on HSA
contributions or more than the amount
that would otherwise be included in your
income. If your IRA includes nondeduc-
tible contributions, the HFD is first con-
sidered to be paid out of otherwise taxa-
ble income. See Pub. 969 for details.
The amount of an HFD reduces
the amount you can contribute
to your HSA for the year. If you
fail to maintain eligibility for an HSA
for the 12 months following the month of
the HFD, you may have to report the
HFD as income and pay an additional
tax. See Form 8889, Part III.
More than one exception applies. If
more than one exception applies, include
a statement showing the amount of each
exception, instead of making an entry
next to line 15b. For example: “Line 15b
– $1,000 Rollover and $500 HFD.” But
you do not need to attach a statement if
only Exception 2 and one other excep-
tion apply.
More than one distribution. If you (or
your spouse if filing jointly) received
more than one distribution, figure the
taxable amount of each distribution and
enter the total of the taxable amounts on
CAUTION
!
CAUTION
!
line 15b. Enter the total amount of those
distributions on line 15a.
You may have to pay an addi
tional tax if (a) you received an
early distribution from your
IRA and the total wasn't rolled over, or
(b) you were born before July 1, 1945,
and received less than the minimum re
quired distribution from your tradition
al, SEP, and SIMPLE IRAs. See the in
structions for line 59 for details.
More information. For more informa-
tion about IRAs, see Pub. 590-A and
Pub. 590-B.
Lines 16a and 16b
Pensions and Annuities
You should receive a Form 1099-R
showing the total amount of your pen-
sion and annuity payments before in-
come tax or other deductions were with-
held. This amount should be shown in
box 1 of Form 1099-R. Pension and an-
nuity payments include distributions
from 401(k), 403(b), and governmental
457(b) plans. Rollovers and lump-sum
distributions are explained later. Do not
include the following payments on lines
16a and 16b. Instead, report them on
line 7.
Disability pensions received before
you reach the minimum retirement age
set by your employer.
Corrective distributions (including
any earnings) of excess salary deferrals
or excess contributions to retirement
plans. The plan must advise you of the
year(s) the distributions are includible in
income.
Attach Form(s) 1099R to Form
1040 if any federal income tax
was withheld.
Fully Taxable Pensions and
Annuities
Your payments are fully taxable if (a)
you didn't contribute to the cost (see
Cost, later) of your pension or annuity,
or (b) you got your entire cost back tax
free before 2016. But see Insurance Pre
miums for Retired Public Safety Offi
cers, later. If your pension or annuity is
fully taxable, enter the total pension or
annuity payments (from Form(s)
1099-R, box 1) on line 16b; do not make
an entry on line 16a.
CAUTION
!
TIP
Fully taxable pensions and annuities
also include military retirement pay
shown on Form 1099-R. For details on
military disability pensions, see Pub.
525. If you received a Form
RRB-1099-R, see Pub. 575 to find out
how to report your benefits.
Partially Taxable Pensions and
Annuities
Enter the total pension or annuity pay-
ments (from Form 1099-R, box 1) on
line 16a. If your Form 1099-R doesn't
show the taxable amount, you must use
the General Rule explained in Pub. 939
to figure the taxable part to enter on
line 16b. But if your annuity starting
date (defined later) was after July 1,
1986, see Simplified Method, later, to
find out if you must use that method to
figure the taxable part.
You can ask the IRS to figure the tax-
able part for you for a $1,000 fee. For
details, see Pub. 939.
If your Form 1099-R shows a taxable
amount, you can report that amount on
line 16b. But you may be able to report a
lower taxable amount by using the Gen-
eral Rule or the Simplified Method or if
the exclusion for retired public safety of-
ficers, discussed next, applies.
Insurance Premiums for Retired
Public Safety Officers
If you are an eligible retired public safe-
ty officer (law enforcement officer, fire-
fighter, chaplain, or member of a rescue
squad or ambulance crew), you can elect
to exclude from income distributions
made from your eligible retirement plan
that are used to pay the premiums for
coverage by an accident or health plan
or a long-term care insurance contract.
You can do this only if you retired be-
cause of disability or because you
reached normal retirement age. The pre-
miums can be for coverage for you, your
spouse, or dependents. The distribution
must be from a plan maintained by the
employer from which you retired as a
public safety officer. Also, the distribu-
tion must be made directly from the plan
to the provider of the accident or health
plan or long-term care insurance con-
tract. You can exclude from income the
smaller of the amount of the premiums
or $3,000. You can make this election
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2016 Form 1040—Lines 16b Through 20b
only for amounts that would otherwise
be included in your income.
An eligible retirement plan is a gov-
ernmental plan that is a qualified trust or
a section 403(a), 403(b), or 457(b) plan.
If you make this election, reduce the
otherwise taxable amount of your pen-
sion or annuity by the amount excluded.
The amount shown in box 2a of Form
1099-R doesn't reflect the exclusion. Re-
port your total distributions on line 16a
and the taxable amount on line 16b. En-
ter “PSO” next to line 16b.
If you are retired on disability and re-
porting your disability pension on line 7,
include only the taxable amount on that
line and enter “PSO” and the amount ex-
cluded on the dotted line next to line 7.
Simplified Method
You must use the Simplified Method if
either of the following applies.
1. Your annuity starting date was af-
ter July 1, 1986, and you used this meth-
od last year to figure the taxable part.
2. Your annuity starting date was af-
ter November 18, 1996, and both of the
following apply.
a. The payments are from a quali-
fied employee plan, a qualified employ-
ee annuity, or a tax-sheltered annuity.
b. On your annuity starting date, ei-
ther you were under age 75 or the num-
ber of years of guaranteed payments was
fewer than 5. See Pub. 575 for the defi-
nition of guaranteed payments.
If you must use the Simplified Meth-
od, complete the Simplified Method
Worksheet in these instructions to figure
the taxable part of your pension or annu-
ity. For more details on the Simplified
Method, see Pub. 575 (or Pub. 721 for
U.S. Civil Service retirement benefits).
If you received U.S. Civil Serv
ice retirement benefits and you
chose the alternative annuity
option, see Pub. 721 to figure the taxa
ble part of your annuity. Do not use the
Simplified Method Worksheet in these
instructions.
Annuity Starting Date
Your annuity starting date is the later of
the first day of the first period for which
you received a payment or the date the
plan's obligations became fixed.
CAUTION
!
Age (or Combined Ages) at
Annuity Starting Date
If you are the retiree, use your age on
the annuity starting date. If you are the
survivor of a retiree, use the retiree's age
on his or her annuity starting date. But if
your annuity starting date was after 1997
and the payments are for your life and
that of your beneficiary, use your com-
bined ages on the annuity starting date.
If you are the beneficiary of an em-
ployee who died, see Pub. 575. If there
is more than one beneficiary, see Pub.
575 or Pub. 721 to figure each benefi-
ciary's taxable amount.
Cost
Your cost is generally your net invest-
ment in the plan as of the annuity start-
ing date. It doesn't include pre-tax con-
tributions. Your net investment should
be shown in box 9b of Form 1099-R for
the first year you received payments
from the plan.
Rollovers
Generally, a qualified rollover is a
tax-free distribution of cash or other as-
sets from one retirement plan that is
contributed to another plan within 60
days of receiving the distribution. How-
ever, a qualified rollover to a Roth IRA
or a designated Roth account is general-
ly not a tax-free distribution. Use lines
16a and 16b to report a qualified roll-
over, including a direct rollover, from
one qualified employer's plan to another
or to an IRA or SEP.
Enter on line 16a the distribution
from Form 1099-R, box 1. From this
amount, subtract any contributions (usu-
ally shown in box 5) that were taxable to
you when made. From that result, sub-
tract the amount of the qualified roll-
over. Enter the remaining amount on
line 16b. If the remaining amount is zero
and you have no other distribution to re-
port on line 16b, enter zero on line 16b.
Also, enter "Rollover" next to line 16b.
See Pub. 575 for more details on roll-
overs, including special rules that apply
to rollovers from designated Roth ac-
counts, partial rollovers of property, and
distributions under qualified domestic
relations orders.
Lump-Sum Distributions
If you received a lump-sum distribution
from a profit-sharing or retirement plan,
your Form 1099-R should have the "To-
tal distribution" box in box 2b checked.
You may owe an additional tax if you
received an early distribution from a
qualified retirement plan and the total
amount wasn't rolled over in a qualified
rollover. For details, see the instructions
for line 59.
Enter the total distribution on
line 16a and the taxable part on line 16b.
For details, see Pub. 575.
If you or the plan participant
was born before January 2,
1936, you could pay less tax on
the distribution. See Form 4972.
Line 19
Unemployment
Compensation
You should receive a Form 1099-G
showing in box 1 the total unemploy-
ment compensation paid to you in 2016.
Report this amount on line 19. However,
if you made contributions to a govern-
mental unemployment compensation
program or to a governmental paid fami-
ly leave program and you aren't itemiz-
ing deductions, reduce the amount you
report on line 19 by those contributions.
If you are itemizing deductions, see the
instructions on Form 1099-G.
If you received an overpayment of
unemployment compensation in 2016
and you repaid any of it in 2016, sub-
tract the amount you repaid from the to-
tal amount you received. Enter the result
on line 19. Also, enter “Repaid” and the
amount you repaid on the dotted line
next to line 19. If, in 2016, you repaid
unemployment compensation that you
included in gross income in an earlier
year, you can deduct the amount repaid
on Schedule A, line 23. But if you re-
paid more than $3,000, see Repayments
in Pub. 525 for details on how to report
the repayment.
Lines 20a and 20b
Social Security Benefits
You should receive a Form SSA-1099
showing in box 3 the total social securi-
ty benefits paid to you. Box 4 will show
TIP
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2016 Form 1040—Lines 16a and 16b
Simplified Method Worksheet—Lines 16a and 16b Keep for Your Records
Before you begin: If you are the beneciary of a deceased employee or former employee who died before August 21, 1996, include
any death benet exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below.
More than one pension or annuity. If you had more than one partially taxable pension or annuity, gure the taxable part of each separately. Enter
the total of the taxable parts on Form 1040, line 16b. Enter the total pension or annuity payments received in 2016 on Form 1040, line 16a.
1.
1.
2. 2.
Note. If you completed this worksheet last year, skip line 3 and enter the amount from line 4
of last year’s worksheet on line 4 below (even if the amount of your pension or annuity has
changed). Otherwise, go to line 3.
3. Enter the appropriate number from Table 1 below. But if your annuity starting date was after
1997 and the payments are for your life and that of your beneciary, enter the appropriate
number from Table 2 below 3.
4. Divide line 2 by the number on line 3 4.
5. Multiply line 4 by the number of months for which this year’s payments were made. If your
annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8.
Otherwise, go to line 6 5.
6. Enter the amount, if any, recovered tax free in years after 1986. If you completed this
worksheet last year, enter the amount from line 10 of last year’s worksheet 6.
7. Subtract line 6 from line 2 7.
8. Enter the smaller of line 5 or line 7 8.
9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form
1040, line 16b. If your Form 1099-R shows a larger amount, use the amount on this line instead of the amount from
Form 1099-R. If you are a retired public safety ofcer, see Insurance Premiums for Retired Public Safety Ofcers
before entering an amount on line 16b 9.
10. Was your annuity starting date before 1987?
Yes. STOP Do not complete the rest of this worksheet.
No. Add lines 6 and 8. This is the amount you have recovered tax free through 2016. You will need this
number if you need to ll out this worksheet next year 10.
Table 1 for Line 3 Above
AND your annuity starting date was—
IF the age at annuity starting
date was . . .
before November 19, 1996,
enter on line 3 . . .
after November 18, 1996,
enter on line 3 . . .
360
310
260
210
160
300
260
240
170
120
55 or under
56–60
61–65
66–70
71 or older
Table 2 for Line 3 Above
IF the combined ages at annuity
starting date were . . . THEN enter on line 3 . . .
410
360
310
260
210
110 or under
111–120
121–130
131–140
141 or older
11.
11.
Balance of cost to be recovered. Subtract line 10 from line 2. If zero, you won’t have to complete this
worksheet next year. The payments you receive next year will generally be fully taxable
Enter the total pension or annuity payments from Form 1099-R, box 1. Also, enter this amount on Form 1040,
line 16a
Enter your cost in the plan at the annuity starting date . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .
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2016 Form 1040—Lines 20b and 21
the amount of any benefits you repaid in
2016. If you received railroad retirement
benefits treated as social security, you
should receive a Form RRB-1099.
Use the Social Security Benefits
Worksheet in these instructions to see if
any of your benefits are taxable.
Exception. Do not use the Social Se-
curity Benefits Worksheet in these in-
structions if any of the following ap-
plies.
You made contributions to a tradi-
tional IRA for 2016 and you or your
spouse were covered by a retirement
plan at work or through self-employ-
ment. Instead, use the worksheets in
Pub. 590-A to see if any of your social
security benefits are taxable and to fig-
ure your IRA deduction.
You repaid any benefits in 2016
and your total repayments (box 4) were
more than your total benefits for 2016
(box 3). None of your benefits are taxa-
ble for 2016. Also, you may be able to
take an itemized deduction or a credit
for part of the excess repayments if they
were for benefits you included in gross
income in an earlier year. For more de-
tails, see Pub. 915.
You file Form 2555, 2555-EZ,
4563, or 8815, or you exclude employ-
er-provided adoption benefits or income
from sources within Puerto Rico. In-
stead, use the worksheet in Pub. 915.
Benefits for earlier year re-
ceived in 2016? If any of your
benefits are taxable for 2016
and they include a lumpsum benefit
payment that was for an earlier year,
you may be able to reduce the taxable
amount. See Lump-Sum Election in
Pub. 915 for details.
Social security information. Social se-
curity beneficiaries can now get a varie-
ty of information from the SSA website
with a my Social Security account, in-
cluding getting a replacement Form
SSA-1099 if needed. For more informa-
tion and to set up an account, go to
www.socialsecurity.gov/myaccount.
Form RRB1099. If you need a re-
placement Form RRB-1099, call the
Railroad Retirement Board at
1-877-772-5772 or go to www.rrb.gov.
TIP
Line 21
Other Income
Do not report on this line any
income from selfemployment
or fees received as a notary
public. Instead, you must use Sched
ule C, CEZ, or F, even if you do not
have any business expenses. Also, do not
report on line 21 any nonemployee com
pensation shown on Form 1099MISC
(unless it isn't selfemployment income,
such as income from a hobby or a
sporadic activity). Instead, see the in
structions on Form 1099MISC to find
out where to report that income.
Taxable income. Use line 21 to report
any taxable income not reported else-
where on your return or other schedules.
List the type and amount of income. If
necessary, include a statement showing
the required information. For more de-
tails, see Miscellaneous Income in Pub.
525.
Examples of income to report on
line 21 include the following.
Most prizes and awards. But see
Olympic and Paralympic medals and
USOC prize money, later.
Jury duty pay. Also see the instruc-
tions for line 36.
Alaska Permanent Fund dividends.
Reimbursements or other amounts
received for items deducted in an earlier
year, such as medical expenses, real es-
tate taxes, general sales taxes, or home
mortgage interest. See Recoveries in
Pub. 525 for details on how to figure the
amount to report.
Income from the rental of personal
property if you engaged in the rental for
profit but were not in the business of
renting such property. Also see the in-
structions for line 36.
Income from an activity not engag-
ed in for profit. See Pub. 535.
Amounts deemed to be income
from a health savings account (HSA) be-
cause you didn't remain an eligible indi-
vidual during the testing period. See
Form 8889, Part III.
Gambling winnings, including lot-
teries, raffles, a lump-sum payment from
the sale of a right to receive future lot-
tery payments, etc. For details on gam-
bling losses, see the instructions for
Schedule A, line 28.
CAUTION
!
Attach Form(s) W2G to Form
1040 if any federal income tax
was withheld.
Reemployment trade adjustment
assistance (RTAA) payments. These
payments should be shown in box 5 of
Form 1099-G.
Loss on certain corrective distribu-
tions of excess deferrals. See Retirement
Plan Contributions in Pub. 525.
Dividends on insurance policies if
they exceed the total of all net premiums
you paid for the contract.
Recapture of a charitable contribu-
tion deduction relating to the contribu-
tion of a fractional interest in tangible
personal property. See Fractional Inter
est in Tangible Personal Property in
Pub. 526. Interest and an additional 10%
tax apply to the amount of the recapture.
See the instructions for line 62.
Recapture of a charitable contribu-
tion deduction if the charitable organiza-
tion disposes of the donated property
within 3 years of the contribution. See
Recapture if no exempt use in Pub. 526.
Canceled debts. These amounts
may be shown in box 2 of Form 1099-C.
However, part or all of your income
from the cancellation of debt may be
nontaxable. See Pub. 4681 or go to
IRS.gov and enter “canceled debt” or
“foreclosure” in the search box.
Taxable part of disaster relief pay-
ments. See Pub. 525 to figure the taxa-
ble part, if any. If any of your disaster
relief payment is taxable, attach a state-
ment showing the total payment re-
ceived and how you figured the taxable
part.
Taxable distributions from a Cov-
erdell education savings account (ESA)
or a qualified tuition program (QTP).
Distributions from these accounts may
be taxable if (a) they are more than the
qualified higher education expenses of
the designated beneficiary in 2016, and
(b) they were not included in a qualified
rollover. See Pub. 970. Nontaxable dis-
tributions from these accounts, including
rollovers, do not have to be reported on
Form 1040.
You may have to pay an addi
tional tax if you received a tax
able distribution from a Cover
dell ESA or a QTP. See the Instructions
for Form 5329.
Taxable distributions from a health
savings account (HSA) or an Archer
TIP
CAUTION
!
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2016 Form 1040—Lines 20a and 20b
Social Security Benefits Worksheet—Lines 20a and 20b Keep for Your Records
Complete Form 1040, lines 21 and 23 through 32, if they apply to you.
Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for
line 36).
If you are married filing separately and you lived apart from your spouse for all of 2016, enter “D” to
the right of the word “benefits” on line 20a. If you do not, you may get a math error notice from the
IRS.
Be sure you have read the Exception in the line 20a and 20b instructions to see if you can use this
worksheet instead of a publication to find out if any of your benefits are taxable.
Before you begin:
1. Enter the total amount from box 5 of all your Forms SSA1099 and
Forms RRB1099. Also, enter this amount on Form 1040, line 20a .... 1.
2. Multiply line 1 by 50% (0.50) ........................................................ 2.
3. Combine the amounts from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19,
and 21 ............................................................................ 3.
4. Enter the amount, if any, from Form 1040, line 8b ....................................... 4.
5. Combine lines 2, 3, and 4 ............................................................ 5.
6. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in
adjustments you entered on the dotted line next to line 36 ................................. 6.
7. Is the amount on line 6 less than the amount on line 5?
No.
STOP
None of your social security benefits are taxable. Enter -0- on Form 1040,
line 20b.
Yes. Subtract line 6 from line 5 ................................................... 7.
8. If you are:
Married filing jointly, enter $32,000
Single, head of household, qualifying widow(er), or married filing
separately and you lived apart from your spouse for all of 2016,
enter $25,000 ............... 8.
Married filing separately and you lived with your spouse at any time
in 2016, skip lines 8 through 15; multiply line 7 by 85% (0.85) and
enter the result on line 16. Then, go to line 17
9. Is the amount on line 8 less than the amount on line 7?
No.
STOP
None of your social security benefits are taxable. Enter -0- on Form 1040,
line 20b. If you are married filing separately and you lived apart from your
spouse for all of 2016, be sure you entered “D” to the right of the word
“benefits” on line 20a.
Yes. Subtract line 8 from line 7 ................................................... 9.
10. Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying
widow(er), or married filing separately and you lived apart from your spouse for all
of 2016 ........................................................................... 10.
11. Subtract line 10 from line 9. If zero or less, enter -0- ..................................... 11.
12. Enter the smaller of line 9 or line 10 .................................................. 12.
13. Enter one-half of line 12 ............................................................. 13.
14. Enter the smaller of line 2 or line 13 .................................................. 14.
15. Multiply line 11 by 85% (0.85). If line 11 is zero, enter -0- ................................ 15.
16. Add lines 14 and 15 ................................................................. 16.
17. Multiply line 1 by 85% (0.85) ........................................................ 17.
18. Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount
on Form 1040, line 20b .............................................................. 18.
TIP
If any of your benefits are taxable for 2016 and they include a lumpsum benefit payment that was for an earlier
year, you may be able to reduce the taxable amount. See Lump-Sum Election in Pub. 915 for details.
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2016 Form 1040—Lines 21 Through 24
MSA. Distributions from these accounts
may be taxable if (a) they are more than
the unreimbursed qualified medical ex-
penses of the account beneficiary or ac-
count holder in 2016, and (b) they were
not included in a qualified rollover. See
Pub. 969.
You may have to pay an addi
tional tax if you received a tax
able distribution from an HSA
or an Archer MSA. See the Instructions
for Form 8889 for HSAs or the Instruc
tions for Form 8853 for Archer MSAs.
Taxable distributions from an
ABLE account. Distributions from this
type of account may be taxable if (a)
they are more than the designated bene-
ficiary's qualified disability expenses,
and (b) they were not included in a
qualified rollover. Enter “ABLE” and
the taxable amount on the dotted line
next to line 21. See Pub. 907 for more
information.
You may have to pay an addi
tional tax if you received a tax
able distribution from an ABLE
account. See the Instructions for Form
5329.
Nontaxable income. Do not report any
nontaxable income on line 21. Examples
of nontaxable income include the fol-
lowing.
Child support.
Payments you received to help you
pay your mortgage loan under the HFA
Hardest Hit Fund or the Emergency
Homeowners' Loan Program or similar
state program.
Any Pay-for-Performance Success
Payments that reduce the principal bal-
ance of your home mortgage under the
Home Affordable Modification Pro-
gram.
Life insurance proceeds received
because of someone's death (other than
from certain employer-owned life insur-
ance contracts).
Gifts and bequests. However, if
you received a gift or bequest from a
foreign person of more than $15,671,
you may have to report information
about it on Form 3520, Part IV. See the
Instructions for Form 3520.
Net operating loss (NOL) deduction.
Include on line 21 any NOL deduction
from an earlier year. Subtract it from
any income on line 21 and enter the re-
sult. If the result is less than zero, enter
CAUTION
!
CAUTION
!
it in parentheses. On the dotted line next
to line 21, enter “NOL” and show the
amount of the deduction in parentheses.
See Pub. 536 for details.
Medicaid waiver payments to care
provider. Certain Medicaid waiver
payments you received for caring for
someone living in your home with you
may be nontaxable. If these payments
were incorrectly reported to you in
box 1 of Form(s) W-2, and you can't get
a corrected Form W-2, include the
amount on line 7. On line 21, subtract
the nontaxable amount of the payments
from any income on line 21 and enter
the result. If the result is less than zero,
enter it in parentheses. Enter “Notice
2014-7” and the nontaxable amount on
the dotted line next to line 21. For more
information about these payments, see
Pub. 525.
Olympic and Paralympic medals and
USOC prize money. The value of
Olympic and Paralympic medals and the
amount of United States Olympic Com-
mittee prize money you receive on ac-
count of your participation in the Olym-
pic or Paralympic Games may be
nontaxable. These amounts should be re-
ported to you in box 3 of Form
1099-MISC. To see if these amounts are
nontaxable, first figure your adjusted
gross income including the amount of
your medals and prize money. If your
adjusted gross income is not more than
$1,000,000 ($500,000 if married filing
separately), these amounts are nontaxa-
ble and you should include the amount
in box 3 of Form 1099-MISC on line 21,
then subtract it by including it on line 36
along with any other write-in adjust-
ments. On the dotted line next to line 36,
enter the nontaxable amount and identi-
fy as “USOC.”
Adjusted Gross
Income
Line 23
Educator Expenses
If you were an eligible educator in 2016,
you can deduct on line 23 up to $250 of
qualified expenses you paid in 2016. If
you and your spouse are filing jointly
and both of you were eligible educators,
the maximum deduction is $500. How-
ever, neither spouse can deduct more
than $250 of his or her qualified expen-
ses on line 23. You may be able to de-
duct expenses that are more than the
$250 (or $500) limit on Schedule A,
line 21. An eligible educator is a kinder-
garten through grade 12 teacher, instruc-
tor, counselor, principal, or aide who
worked in a school for at least 900 hours
during a school year.
Qualified expenses include ordinary
and necessary expenses paid:
For professional development
courses you have taken related to the
curriculum you teach or to the students
you teach, or
In connection with books, sup-
plies, equipment (including computer
equipment, software, and services), and
other materials used in the classroom.
An ordinary expense is one that is
common and accepted in your educa-
tional field. A necessary expense is one
that is helpful and appropriate for your
profession as an educator. An expense
does not have to be required to be con-
sidered necessary.
Qualified expenses do not include ex-
penses for home schooling or for non-
athletic supplies for courses in health or
physical education.
You must reduce your qualified ex-
penses by the following amounts.
Excludable U.S. series EE and I
savings bond interest from Form 8815.
Nontaxable qualified tuition pro-
gram earnings or distributions.
Any nontaxable distribution of
Coverdell education savings account
earnings.
Any reimbursements you received
for these expenses that were not reported
to you in box 1 of your Form W-2.
For more details, use Tax Topic 458
or see Pub. 529.
Line 24
Certain Business Expenses
of Reservists, Performing
Artists, and Fee-Basis
Government Officials
Include the following deductions on
line 24.
Certain business expenses of Na-
tional Guard and reserve members who
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2016 Form 1040—Lines 24 Through 29
traveled more than 100 miles from home
to perform services as a National Guard
or reserve member.
Performing-arts-related expenses
as a qualified performing artist.
Business expenses of fee-basis
state or local government officials.
For more details, see Form 2106 or
2106-EZ.
Line 25
Health Savings Account
(HSA) Deduction
You may be able to take this deduction
if contributions (other than employer
contributions, rollovers, and qualified
HSA funding distributions from an IRA)
were made to your HSA for 2016. See
Form 8889.
Line 26
Moving Expenses
If you moved in connection with your
job or business or started a new job, you
may be able to take this deduction. But
your new workplace must be at least 50
miles farther from your old home than
your old home was from your old work-
place. If you had no former workplace,
your new workplace must be at least 50
miles from your old home. Use Tax
Topic 455 or see Form 3903.
Line 27
Deductible Part of
Self-Employment Tax
If you were self-employed and owe
self-employment tax, fill in Schedule SE
to figure the amount of your deduction.
If you completed Section A of Sched-
ule SE, the deductible part of your
self-employment tax is on line 6. If you
completed Section B of Schedule SE, it
is on line 13.
Line 28
Self-Employed SEP,
SIMPLE, and Qualified Plans
If you were self-employed or a partner,
you may be able to take this deduction.
See Pub. 560 or, if you were a minister,
Pub. 517.
Line 29
Self-Employed Health
Insurance Deduction
You may be able to deduct the amount
you paid for health insurance for your-
self, your spouse, and your dependents.
The insurance can also cover your child
who was under age 27 at the end of
2016, even if the child wasn't your de-
pendent. A child includes your son,
daughter, stepchild, adopted child, or
foster child (defined in the line 6c in-
structions).
One of the following statements must
be true.
You were self-employed and had a
net profit for the year reported on
Schedule C, C-EZ, or F.
You were a partner with net earn-
ings from self-employment.
You used one of the optional
methods to figure your net earnings
from self-employment on Schedule SE.
Self-Employed Health Insurance Deduction Worksheet—Line 29 Keep for Your Records
If, during 2016, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA
(ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation
pension payee, see the Instructions for Form 8885 to figure the amount to enter on line 1 of this
worksheet.
Be sure you have read the Exceptions in the instructions for this line to see if you can use this
worksheet instead of Pub. 535 to figure your deduction.
Before you begin:
1. Enter the total amount paid in 2016 for health insurance coverage established under your business
(or the S corporation in which you were a more-than-2% shareholder) for 2016 for you, your
spouse, and your dependents. Your insurance can also cover your child who was under age 27 at
the end of 2016, even if the child wasn't your dependent. But do not include amounts for any month
you were eligible to participate in an employer-sponsored health plan or amounts paid from
retirement plan distributions that were nontaxable because you are a retired public safety
officer .............................................................................. 1.
2. Enter your net profit* and any other earned income** from the business under which the insurance
plan is established, minus any deductions on Form 1040, lines 27 and 28. Do not include
Conservation Reserve Program payments exempt from self-employment tax ................... 2.
3. Selfemployed health insurance deduction. Enter the smaller of line 1 or line 2 here and on
Form 1040, line 29. Do not include this amount in figuring any medical expense deduction on
Schedule A .......................................................................... 3.
*If you used either optional method to figure your net earnings from selfemployment, do not enter your net profit. Instead, enter the
amount from Schedule SE, Section B, line 4b.
**Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it doesn't include
capital gain income. If you were a morethan2% shareholder in the S corporation under which the insurance plan is established, earned
income is your Medicare wages (box 5 of Form W2) from that corporation.
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2016 Form 1040—Lines 29 Through 32
You received wages in 2016 from
an S corporation in which you were a
more-than-2% shareholder. Health in-
surance premiums paid or reimbursed by
the S corporation are shown as wages on
Form W-2.
The insurance plan must be establish-
ed under your business. Your personal
services must have been a material in-
come-producing factor in the business.
If you are filing Schedule C, C-EZ, or F,
the policy can be either in your name or
in the name of the business.
If you are a partner, the policy can be
either in your name or in the name of the
partnership. You can either pay the pre-
miums yourself or your partnership can
pay them and report them as guaranteed
payments. If the policy is in your name
and you pay the premiums yourself, the
partnership must reimburse you and re-
port the premiums as guaranteed pay-
ments.
If you are a more-than-2% sharehold-
er in an S corporation, the policy can be
either in your name or in the name of the
S corporation. You can either pay the
premiums yourself or the S corporation
can pay them and report them as wages.
If the policy is in your name and you
pay the premiums yourself, the S corpo-
ration must reimburse you. You can de-
duct the premiums only if the S corpora-
tion reports the premiums paid or reim-
bursed as wages in box 1 of your Form
W-2 in 2016 and you also report the pre-
mium payments or reimbursements as
wages on Form 1040, line 7.
But if you were also eligible to par-
ticipate in any subsidized health plan
maintained by your or your spouse's em-
ployer for any month or part of a month
in 2016, amounts paid for health insur-
ance coverage for that month can't be
used to figure the deduction. Also, if
you were eligible for any month or part
of a month to participate in any subsi-
dized health plan maintained by the em-
ployer of either your dependent or your
child who was under age 27 at the end
of 2016, do not use amounts paid for
coverage for that month to figure the de-
duction.
Example. If you were eligible to par-
ticipate in a subsidized health plan main-
tained by your spouse's employer from
September 30 through December 31,
you can't use amounts paid for health in-
surance coverage for September through
December to figure your deduction.
Medicare premiums you voluntarily
pay to obtain insurance in your name
that is similar to qualifying private
health insurance can be used to figure
the deduction. Amounts paid for health
insurance coverage from retirement plan
distributions that were nontaxable be-
cause you are a retired public safety of-
ficer can't be used to figure the deduc-
tion.
For more details, see Pub. 535.
If you qualify to take the deduction,
use the Self-Employed Health Insurance
Deduction Worksheet to figure the
amount you can deduct.
Exceptions. Use Pub. 535 instead of
the Self-Employed Health Insurance De-
duction Worksheet in these instructions
to figure your deduction if any of the
following applies.
You had more than one source of
income subject to self-employment tax.
You file Form 2555 or 2555-EZ.
You are using amounts paid for
qualified long-term care insurance to
figure the deduction.
Use Pub. 974 instead of the work-
sheet in these instructions if the insur-
ance plan was considered to be estab-
lished under your business and was ob-
tained through the Marketplace, and ad-
vance payments of the premium tax
credit were made or you are claiming
the premium tax credit.
Line 30
Penalty on Early Withdrawal
of Savings
The Form 1099-INT or Form 1099-OID
you received will show the amount of
any penalty you were charged.
Lines 31a and 31b
Alimony Paid
If you made payments to or for your
spouse or former spouse under a divorce
or separation instrument, you may be
able to take this deduction. Use Tax
Topic 452 or see Pub. 504.
Line 32
IRA Deduction
If you made any nondeductible
contributions to a traditional
individual retirement arrange
ment (IRA) for 2016, you must report
them on Form 8606.
If you made contributions to a tradition-
al IRA for 2016, you may be able to take
an IRA deduction. But you, or your
spouse if filing a joint return, must have
had earned income to do so. For IRA
purposes, earned income includes alimo-
ny and separate maintenance payments
reported on line 11. If you were a mem-
ber of the U.S. Armed Forces, earned in-
come includes any nontaxable combat
pay you received. If you were self-em-
ployed, earned income is generally your
net earnings from self-employment if
your personal services were a material
income-producing factor. For more de-
tails, see Pub. 590-A. A statement
should be sent to you by May 31, 2017,
that shows all contributions to your tra-
ditional IRA for 2016.
Use the IRA Deduction Worksheet to
figure the amount, if any, of your IRA
deduction. But read the following
11-item list before you fill in the work-
sheet.
1. If you were age 7012 or older at
the end of 2016, you can't deduct any
contributions made to your traditional
IRA for 2016 or treat them as nondeduc-
tible contributions.
2. You can't deduct contributions to
a Roth IRA. But you may be able to take
the retirement savings contributions
credit (saver's credit). See the instruc-
tions for line 51.
3. If you are filing a joint return and
you or your spouse made contributions
to both a traditional IRA and a Roth IRA
for 2016, do not use the IRA Deduction
Worksheet in these instructions. Instead,
see Pub. 590-A to figure the amount, if
any, of your IRA deduction.
4. You can't deduct elective defer-
rals to a 401(k) plan, 403(b) plan, sec-
tion 457 plan, SIMPLE plan, or the fed-
eral Thrift Savings Plan. These amounts
aren't included as income in box 1 of
your Form W-2. But you may be able to
take the retirement savings contributions
credit. See the instructions for line 51.
TIP
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2016 Form 1040—Line 32
5. If you made contributions to your
IRA in 2016 that you deducted for 2015,
do not include them in the worksheet.
6. If you received income from a
nonqualified deferred compensation
plan or nongovernmental section 457
plan that is included in box 1 of your
Form W-2, or in box 7 of Form
1099-MISC, do not include that income
on line 8 of the worksheet. The income
should be shown in (a) box 11 of your
Form W-2, (b) box 12 of your Form
W-2 with code Z, or (c) box 15b of
Form 1099-MISC. If it isn't, contact
your employer or the payer for the
amount of the income.
7. You must file a joint return to de-
duct contributions to your spouse's IRA.
Enter the total IRA deduction for you
and your spouse on line 32.
8. Do not include qualified rollover
contributions in figuring your deduction.
Instead, see the instructions for lines 15a
and 15b.
9. Do not include trustees' fees that
were billed separately and paid by you
for your IRA. These fees can be deduc-
ted only as an itemized deduction on
Schedule A.
10.
Do not include any repayments of
qualified reservist distributions. You
can't deduct them. For information on
how to report these repayments, see
Qualified reservist repayments in Pub.
590-A.
11.
If the total of your IRA deduction
on line 32 plus any nondeductible con-
tribution to your traditional IRAs shown
on Form 8606 is less than your total tra-
ditional IRA contributions for 2016, see
Pub. 590-A for special rules.
By April 1 of the year after the
year in which you turn age 7012,
you must start taking minimum
required distributions from your tradi
tional IRA. If you do not, you may have
to pay a 50% additional tax on the
amount that should have been distrib
uted. For details, including how to fig
ure the minimum required distribution,
see Pub. 590B.
Were You Covered by a
Retirement Plan?
If you were covered by a retirement plan
(qualified pension, profit-sharing (in-
cluding 401(k)), annuity, SEP, SIMPLE,
etc.) at work or through self-employ-
ment, your IRA deduction may be re-
duced or eliminated. But you can still
make contributions to an IRA even if
TIP
you can't deduct them. In any case, the
income earned on your IRA contribu-
tions isn't taxed until it is paid to you.
The “Retirement plan” box in box 13
of your Form W-2 should be checked if
you were covered by a plan at work
even if you were not vested in the plan.
You are also covered by a plan if you
were self-employed and had a SEP,
SIMPLE, or qualified retirement plan.
If you were covered by a retirement
plan and you file Form 2555, 2555-EZ,
or 8815, or you exclude employer-provi-
ded adoption benefits, see Pub. 590-A to
figure the amount, if any, of your IRA
deduction.
Married persons filing separately. If
you were not covered by a retirement
plan but your spouse was, you are con-
sidered covered by a plan unless you
lived apart from your spouse for all of
2016.
You may be able to take the re
tirement savings contributions
credit. See the line 51 instruc
tions.
TIP
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2016 Form 1040—Line 32
IRA Deduction Worksheet—Line 32 Keep for Your Records
If you were age 7012 or older at the end of 2016, you can't deduct any contributions made to your traditional IRA or treat
them as nondeductible contributions. Do not complete this worksheet for anyone age 7012 or older at the end of 2016. If
you are married filing jointly and only one spouse was under age 7012 at the end of 2016, complete this worksheet only for
that spouse.
Be sure you have read the 11-item list in the instructions for this line. You may not be able to use this worksheet.
Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36).
If you are married filing separately and you lived apart from your spouse for all of 2016, enter “D” on the dotted
line next to Form 1040, line 32. If you do not, you may get a math error notice from the IRS.
Before you begin:
Your IRA Spouse's IRA
1a. Were you covered by a retirement plan (see Were You Covered by a
Retirement Plan?)? ............................................. 1a. Yes No
b. If married filing jointly, was your spouse covered by a retirement plan? ......................... 1b. Yes No
Next. If you checked “No” on line 1a (and “No” on line 1b if married filing
jointly), skip lines 2 through 6, enter the applicable amount below on line 7a
(and line 7b if applicable), and go to line 8.
$5,500, if under age 50 at the end of 2016.
$6,500, if age 50 or older but under age 7012 at the end of 2016.
Otherwise, go to line 2.
2. Enter the amount shown below that applies to you.
Single, head of household, or married filing separately and you lived
apart from your spouse for all of 2016, enter $71,000.
Qualifying widow(er), enter $118,000. 2a. 2b.
Married filing jointly, enter $118,000 in both columns. But if you checked
“No” on either line 1a or 1b, enter $194,000 for the person who wasn't
covered by a plan.
Married filing separately and you lived with your spouse at any time in
2016, enter $10,000.
3. Enter the amount from Form 1040, line 22 ....... 3.
4. Enter the total of the amounts from Form 1040, lines
23 through 31a, plus any write-in adjustments you
entered on the dotted line next to line 36 ......... 4.
5. Subtract line 4 from line 3. If married filing jointly, enter the result in both
columns ..................................................... 5a. 5b.
6. Is the amount on line 5 less than the amount on line 2?
No.
STOP
None of your IRA contributions are deductible. For details on
nondeductible IRA contributions, see Form 8606.
Yes. Subtract line 5 from line 2 in each column. Follow the instruction
below that applies to you.
If single, head of household, or married filing separately,
and the result is $10,000 or more, enter the applicable
amount below on line 7 for that column and go to line 8.
i. $5,500, if under age 50 at the end of 2016.
ii. $6,500, if age 50 or older but under age 7012 at the
end of 2016.
If the result is less than $10,000, go to line 7. 6a. 6b.
If married filing jointly or qualifying widow(er), and the
result is $20,000 or more ($10,000 or more in the column
for the IRA of a person who wasn't covered by a
retirement plan), enter the applicable amount below on
line 7 for that column and go to line 8.
i. $5,500, if under age 50 at the end of 2016.
ii. $6,500 if age 50 or older but under age 7012 at the
end of 2016.
Otherwise, go to line 7.
CAUTION
!
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2016 Form 1040—Line 32
IRA Deduction Worksheet—Continued
Your IRA Spouse's IRA
7. Multiply lines 6a and 6b by the percentage below that applies to you. If the
result isn't a multiple of $10, increase it to the next multiple of $10 (for
example, increase $490.30 to $500). If the result is $200 or more, enter the
result. But if it is less than $200, enter $200.
Single, head of household, or married filing separately, multiply by 55%
(0.55) (or by 65% (0.65) in the column for the IRA of a person who is age
50 or older at the end of 2016).
Married filing jointly or qualifying widow(er), multiply by 27.5% (0.275)
(or by 32.5% (0.325) in the column for the IRA of a person who is age 50 or
older at the end of 2016). But if you checked “No” on either line 1a
or 1b, then in the column for the IRA of the person who wasn't covered by a
retirement plan, multiply by 55% (0.55) (or by 65% (0.65) if age 50 or
older at the end of 2016).
7a. 7b.
8. Enter the total of your (and your spouse's if filing
jointly):
Wages, salaries, tips, etc. Generally, this is the
amount reported in box 1 of Form W-2. Exceptions
are explained earlier in these instructions for line 32. 8.
Alimony and separate maintenance payments
reported on Form 1040, line 11.
Nontaxable combat pay. This amount should be
reported in box 12 of Form W-2 with code Q.
9. Enter the earned income you (and your spouse if
filing jointly) received as a self-employed individual
or a partner. Generally, this is your (and your
spouse's if filing jointly) net earnings from
self-employment if your personal services were a
material income-producing factor, minus any
deductions on Form 1040, lines 27 and 28. If zero or
less, enter -0-. For more details, see Pub.
590-A .................................. 9.
10. Add lines 8 and 9 ......................... 10.
CAUTION
!
If married filing jointly and line 10 is less than $11,000 ($12,000 if
one spouse is age 50 or older at the end of 2016; $13,000 if both
spouses are age 50 or older at the end of 2016), stop here and use
the worksheet in Pub. 590A to figure your IRA deduction.
11. Enter traditional IRA contributions made, or that will be made by April 18,
2017 for 2016 to your IRA on line 11a and to your spouse's IRA on
line 11b ..................................................... 11a. 11b.
12. On line 12a, enter the smallest of line 7a, 10, or 11a. On line 12b, enter the
smallest of line 7b, 10, or 11b. This is the most you can deduct. Add the
amounts on lines 12a and 12b and enter the total on Form 1040, line 32. Or, if
you want, you can deduct a smaller amount and treat the rest as a
nondeductible contribution (see Form 8606) .......................... 12a. 12b.
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2016 Form 1040—Line 33
Line 33
Student Loan Interest
Deduction
You can take this deduction only if all of
the following apply.
You paid interest in 2016 on a
qualified student loan (defined later).
Your filing status is any status ex-
cept married filing separately.
Your modified adjusted gross in-
come (AGI) is less than: $80,000 if sin-
gle, head of household, or qualifying
widow(er); $160,000 if married filing
jointly. Use lines 2 through 4 of the
worksheet in these instructions to figure
your modified AGI.
You, or your spouse if filing joint-
ly, aren't claimed as a dependent on
someone else's (such as your parent's)
2016 tax return.
Use the worksheet in these instruc-
tions to figure your student loan interest
deduction.
Exception. Use Pub. 970 instead of the
worksheet in these instructions to figure
your student loan interest deduction if
you file Form 2555, 2555-EZ, or 4563,
or you exclude income from sources
within Puerto Rico.
Qualified student loan. A qualified
student loan is any loan you took out to
pay the qualified higher education ex-
penses for any of the following individu-
als who was an eligible student.
1. Yourself or your spouse.
2. Any person who was your de-
pendent when the loan was taken out.
3. Any person you could have
claimed as a dependent for the year the
loan was taken out except that:
a. The person filed a joint return,
b. The person had gross income that
was equal to or more than the exemption
amount for that year ($4,050 for 2016),
or
c. You, or your spouse if filing
jointly, could be claimed as a dependent
on someone else's return.
However, a loan isn't a qualified stu-
dent loan if (a) any of the proceeds were
used for other purposes, or (b) the loan
was from either a related person or a
person who borrowed the proceeds un-
der a qualified employer plan or a con-
tract purchased under such a plan. For
details, see Pub. 970.
Qualified higher education expenses.
Qualified higher education expenses
generally include tuition, fees, room and
board, and related expenses such as
books and supplies. The expenses must
be for education in a degree, certificate,
or similar program at an eligible educa-
tional institution. An eligible education-
al institution includes most colleges,
universities, and certain vocational
schools. For details, see Pub. 970.
Student Loan Interest Deduction Worksheet—Line 33 Keep for Your Records
Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36).
Be sure you have read the Exception in the instructions for this line to see if you can use this worksheet instead of Pub.
970 to figure your deduction.
Before you begin:
1. Enter the total interest you paid in 2016 on qualified student loans (see the instructions for line 33). Do not enter more
than $2,500 ............................................................................ 1.
2. Enter the amount from Form 1040, line 22 ...................................... 2.
3. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in
adjustments you entered on the dotted line next to line 36 ........................... 3.
4. Subtract line 3 from line 2 .................................................. 4.
5. Enter the amount shown below for your filing status.
Single, head of household, or qualifying
widow(er)—$65,000
Married filing jointly—$130,000
.. ...........
5.
6. Is the amount on line 4 more than the amount on line 5?
No. Skip lines 6 and 7, enter -0- on line 8, and go to line 9.
Yes. Subtract line 5 from line 4 .......................................... 6.
7. Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three
places). If the result is 1.000 or more, enter 1.000 ................................................. 7. .
8. Multiply line 1 by line 7 ................................................................... 8.
9. Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on
Form 1040, line 33. Do not include this amount in figuring any other deduction on your return (such as on
Schedule A, C, E, etc.) .................................................................... 9.
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2016 Form 1040—Lines 34 Through 39a
Line 34
Tuition and Fees
If you paid qualified tuition and fees for
yourself, your spouse, or your depend-
ent(s), you may be able to take this de-
duction. See Form 8917.
You may be able to take a cred
it for your educational expenses
instead of a deduction. See the
instructions for lines 50 and 68 for de
tails.
Line 35
Domestic Production
Activities Deduction
You may be able to deduct up to 9% of
your qualified production activities in-
come from the following activities.
1. Construction of real property per-
formed in the United States.
2. Engineering or architectural serv-
ices performed in the United States for
construction of real property in the Uni-
ted States.
3. Any lease, rental, license, sale,
exchange, or other disposition of:
a. Tangible personal property, com-
puter software, and sound recordings
that you manufactured, produced, grew,
or extracted in whole or in significant
part in the United States,
b. Any qualified film you produced,
or
c. Electricity, natural gas, or potable
water you produced in the United States.
Your deduction may be reduced if
you had oil-related qualified production
activities income.
The deduction doesn't apply to in-
come derived from:
The sale of food and beverages
you prepared at a retail establishment;
Property you leased, licensed, or
rented for use by any related person;
The transmission or distribution of
electricity, natural gas, or potable water;
or
The lease, rental, license, sale, ex-
change, or other disposition of land.
For details, see Form 8903 and its in-
structions.
TIP
Line 36
Include in the total on line 36 any of the
following write-in adjustments. To find
out if you can take the deduction, see the
form or publication indicated. On the
dotted line next to line 36, enter the
amount of your deduction and identify it
as indicated.
Archer MSA deduction (see Form
8853). Identify as “MSA.”
Jury duty pay if you gave the pay
to your employer because your employ-
er paid your salary while you served on
the jury. Identify as “Jury Pay.”
Deductible expenses related to in-
come reported on line 21 from the rental
of personal property engaged in for prof-
it. Identify as “PPR.”
Nontaxable amount of the value of
Olympic and Paralympic medals and
USOC prize money reported on line 21.
Identify as “USOC.”
Reforestation amortization and ex-
penses (see Pub. 535). Identify as
“RFST.”
Repayment of supplemental unem-
ployment benefits under the Trade Act
of 1974 (see Pub. 525). Identify as
“Sub-Pay TRA.”
Contributions to section 501(c)(18)
(D) pension plans (see Pub. 525). Identi-
fy as “501(c)(18)(D).”
Contributions by certain chaplains
to section 403(b) plans (see Pub. 517).
Identify as “403(b).”
Attorney fees and court costs for
actions involving certain unlawful dis-
crimination claims, but only to the ex-
tent of gross income from such actions
(see Pub. 525). Identify as “UDC.”
Attorney fees and court costs you
paid in connection with an award from
the IRS for information you provided
that helped the IRS detect tax law viola-
tions, up to the amount of the award in-
cludible in your gross income. Identify
as “WBF.”
Line 37
If line 37 is less than zero, you may have
a net operating loss that you can carry to
another tax year. See the Instructions for
Form 1045 for details.
Tax and Credits
Line 39a
If you were born before January 2, 1952,
or were blind at the end of 2016, 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, 1952, or was
blind at the end of 2016, 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.
Death of spouse in 2016. If your
spouse was born before January 2, 1952,
but died in 2016 before reaching age 65,
do not check the box that says “Spouse
was born before January 2, 1952.”
A person is considered to reach age
65 on the day before his or her 65th
birthday.
Example. Your spouse was born on
February 14, 1951, and died on February
13, 2016. Your spouse is considered age
65 at the time of death. Check the appro-
priate box for your spouse on line 39a.
However, if your spouse died on Febru-
ary 12, 2016, your spouse isn't consid-
ered age 65. Do not check the box.
Death of taxpayer in 2016. If you are
preparing a return for someone who died
in 2016, see Pub. 501 before completing
line 39a.
Blindness
If you were not totally blind as of De-
cember 31, 2016, you must get a state-
ment certified by your eye doctor (oph-
thalmologist or optometrist) that:
You can't 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 isn't 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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2016 Form 1040—Lines 39b Through 42
Line 39b
If your filing status is married filing sep-
arately (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 resi-
dent alien at the end of 2016 and you
and your spouse agree to be taxed on
your combined worldwide income, do
not check the box.
Line 40
Itemized Deductions or
Standard Deduction
In most cases, your federal income tax
will be less if you take the larger of your
itemized deductions or standard deduc-
tion.
Itemized Deductions
To figure your itemized deductions, fill
in Schedule A.
Standard Deduction
Most people can find their standard de-
duction by looking at the amounts listed
under “All others” to the left of line 40.
Exception 1—dependent. If you, or
your spouse if filing jointly, can be
claimed as a dependent on someone
else's 2016 return, use the Standard De-
duction Worksheet for Dependents to
figure your standard deduction.
Exception 2—box on line 39a checked.
If you checked any box on line 39a, fig-
ure your standard deduction using the
Standard Deduction Chart for People
Who Were Born Before January 2,
1952, or Were Blind.
Exception 3—box on line 39b
checked. If you checked the box on
line 39b, your standard deduction is
zero, even if you were born before Janu-
ary 2, 1952, or were blind.
Line 42
Exemptions
If the amount on line 38 is over
$155,650, use the Deduction for Exemp-
tions Worksheet to figure your deduc-
tion for exemptions.
Standard Deduction Worksheet for Dependents—Line 40 Keep for Your Records
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 $700?
Yes. Add $350 to your earned income. Enter the total ........................... 1.
No. Enter $1,050
2. Enter the amount shown below for your filing status.
Single or married filing separately—$6,300
Married filing jointly—$12,600
Head of household—$9,300
........................... 2.
3. Standard deduction.
a. Enter the smaller of line 1 or line 2. If born after January 1, 1952, 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, 1952, or blind, multiply the number on Form 1040, line 39a, by $1,250
($1,550 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 taxable scholarship or fellowship grant. 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.
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2016 Form 1040—Line 40
Standard Deduction Chart for People Who Were Born Before January 2, 1952, 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 ................ ▶
CAUTION
!
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
$7,850
9,400
Married filing jointly
or
Qualifying widow(er)
1
2
3
4
$13,850
15,100
16,350
17,600
Married filing separately
1
2
3
4
$7,550
8,800
10,050
11,300
Head of household 1
2
$10,850
12,400
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2016 Form 1040—Lines 42 and 44
Deduction for Exemptions Worksheet—Line 42 Keep for Your Records
1. Is the amount on Form 1040, line 38, more than the amount shown on line 4 below for your filing status?
No.
STOP
Multiply $4,050 by the total number of exemptions claimed on Form 1040, line 6d, and enter the
result on line 42.
Yes. Continue.
2. Multiply $4,050 by the total number of exemptions claimed on Form 1040, line 6d ......... 2.
3. Enter the amount from Form 1040, line 38 ..................... 3.
4. Enter the amount shown below for your filing status.
Single —$259,400
Married filing jointly or qualifying
widow(er)—$311,300
Married filing separately—$155,650
Head of household—$285,350
.... 4.
5. Subtract line 4 from line 3. If the result is more than $122,500
($61,250 if married filing separately) ,
STOP
Enter -0- on
line 42 .................................................... 5.
6. Divide line 5 by $2,500 ($1,250 if married filing separately). If the
result isn't a whole number, increase it to the next higher whole
number (for example, increase .00004 to 1) ..................... 6.
7. Multiply line 6 by 2% (0.02) and enter the result as a decimal (rounded to at least three
places) .......................................................................... 7.
8. Multiply line 2 by line 7 ........................................................... 8.
9. Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form
1040, line 42 .................................................................... 9.
Line 44
Tax
Include in the total on line 44 all of the
following taxes that apply.
Tax on your taxable income. Fig-
ure the tax using one of the methods de-
scribed here.
Tax from Form(s) 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 ap-
propriate box.
Tax due to making a section 962
election (the election made by a domes-
tic shareholder of a controlled foreign
corporation to be taxed at corporate
rates). See section 962 for details. Check
box c and enter the amount and “962” in
the space next to that box. 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 re-
ceived in 2016 for the student. See Form
8863 for more details. Check box c and
enter the amount and “ECR” in the
space next to that box.
Any tax from Form 8621, line 16e,
relating to a section 1291 fund. Check
box c and enter the amount of the tax
and “1291TAX” in the space next to that
box.
Do you want the IRS to figure the
tax on your taxable income for you?
Yes. See chapter 30 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 didn't
pay enough, we will send you a bill.
No. Use one of the following meth-
ods to figure your tax.
Tax Table or Tax Computation
Worksheet. 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 cor-
rect column. If your taxable income is
$100,000 or more, use the Tax Compu-
tation Worksheet right after the Tax Ta-
ble.
However, do not use the Tax Table or
Tax Computation Worksheet to figure
your tax if any of the following applies.
Form 8615. Form 8615 generally must
be used to figure the tax for any child
who had more than $2,100 of unearned
income, such as taxable interest, ordina-
ry dividends, or capital gains (including
capital gain distributions), and who ei-
ther:
1. Was under age 18 at the end of
2016,
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2016 Form 1040—Line 44
2. Was age 18 at the end of 2016
and didn't have earned income that was
more than half of the child's support, or
3. Was a full-time student at least
age 19 but under age 24 at the end of
2016 and didn't have earned income that
was more than half of the child's sup-
port.
But if the child files a joint return for
2016 or if neither of the child's parents
was alive at the end of 2016, do not use
Form 8615 to figure the child's tax.
A child born on January 1, 1999, is
considered to be age 18 at the end of
2016; a child born on January 1, 1998, is
considered to be age 19 at the end of
2016; a child born on January 1, 1993, is
considered to be age 24 at the end of
2016.
Schedule D Tax Worksheet. 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.
Qualified Dividends and Capital Gain
Tax Worksheet. Use the Qualified
Dividends and Capital Gain Tax Work-
sheet, 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 distribu-
tions 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.
Schedule J. 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.
Foreign Earned Income Tax Work
sheet. 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 Work-
sheet.
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2016 Form 1040—Line 44
Foreign Earned Income Tax Worksheet—Line 44 Keep for Your Records
CAUTION
!
If Form 1040, line 43, is zero, do not complete this worksheet.
1. Enter the amount from Form 1040, line 43 ................................................ 1.
2a. Enter the amount from your (and your spouse's, if filing jointly) Form 2555, lines 45 and 50, or
Form 2555-EZ, line 18 ................................................................. 2a.
b. Enter the total amount of any itemized deductions or exclusions you couldn't claim because they are
related to excluded income .............................................................. b.
c. Subtract line 2b from line 2a. If zero or less, enter -0- ....................................... c.
3. Add lines 1 and 2c ..................................................................... 3.
4. Figure the 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. Figure the tax on the amount on line 2c. If the amount on line 2c is less than $100,000, use the
Tax Table to figure this tax. If the amount on line 2c 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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2016 Form 1040—Line 44
Qualified Dividends and Capital Gain Tax Worksheet—Line 44 Keep for Your Records
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.
Before you begin:
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:
$37,650 if single or married filing separately,
$75,300 if married filing jointly or qualifying widow(er),
$50,400 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. Enter:
$415,050 if single,
$233,475 if married filing separately,
$466,950 if married filing jointly or qualifying widow(er),
$441,000 if head of household.
.............15.
16. Enter the smaller of line 1 or line 15 ...................................
16.
17. Add lines 7 and 11 ..................................................
17.
18. Subtract line 17 from line 16. If zero or less, enter -0- ....................
18.
19. Enter the smaller of line 14 or line 18 ..................................
19.
20. Multiply line 19 by 15% (0.15) ....................................... 20.
21. Add lines 11 and 19 .................................................
21.
22. Subtract line 21 from line 12 .........................................
22.
23. Multiply line 22 by 20% (0.20) ....................................... 23.
24. 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 the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation
Worksheet .........................................................................24.
25. Add lines 20, 23, and 24 ..............................................................25.
26. 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 the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation
Worksheet .........................................................................26.
27. Tax on all taxable income. Enter the smaller of line 25 or line 26. 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 .........27.
*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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2016 Form 1040—Lines 45 Through 49
Line 45
Alternative Minimum Tax
(AMT)
If you aren't sure whether you owe the
AMT, complete the Worksheet To See if
You Should Fill in Form 6251.
Exception. Fill in Form 6251 instead of
using the worksheet if you claimed or
received any of the following items.
Accelerated depreciation.
Tax-exempt interest from private
activity bonds.
Intangible drilling, circulation, re-
search, experimental, or mining costs.
Amortization of pollution-control
facilities or depletion.
Income or (loss) from tax-shelter
farm activities, passive activities, part-
nerships, S corporations, or activities for
which you aren't at risk.
Income from long-term contracts
not figured using the percent-
age-of-completion method.
Interest paid on a home mortgage
not used to buy, build, or substantially
improve your home.
Investment interest expense repor-
ted on Form 4952.
Net operating loss deduction.
Alternative minimum tax adjust-
ments from an estate, trust, electing
large partnership, or cooperative.
Section 1202 exclusion.
Stock by exercising an incentive
stock option and you didn't dispose of
the stock in the same year.
Any general business credit claim-
ed on Form 3800 if either line 6 (in Part
I) or line 25 of Form 3800 is more than
zero.
Qualified electric vehicle credit.
Alternative fuel vehicle refueling
property tax.
Credit for prior year minimum tax.
Foreign tax credit.
Form 6251 should be filled in
for certain children who are
under age 24 at the end of
2016. See the Instructions for Form
6251 for more information.
For help with the alternative mini-
mum tax, go to IRS.gov/AMT.
CAUTION
!
Line 46
Excess Advance Premium
Tax Credit Repayment
The premium tax credit helps pay premi-
ums for health insurance purchased from
the Marketplace. Eligible individuals
may have advance payments of the pre-
mium tax credit paid on their behalf di-
rectly to the insurance company. If you,
your spouse with whom you are filing a
joint return, or your dependent was en-
rolled in coverage purchased from the
Marketplace and advance payments of
the premium tax credit were made for
the coverage, complete Form 8962 to
reconcile (compare) the advance pay-
ments with your premium tax credit.
You (or whoever enrolled you) should
have received Form 1095-A from the
Marketplace with information about
your coverage and any advance credit
payments. If the advance credit pay-
ments were more than the premium tax
credit you can claim, the amount you
must repay will be shown on Form
8962, line 29. Enter that amount, if any,
on Form 1040, line 46.
You may have to repay excess ad-
vance payments of the premium tax
credit even if someone else enrolled
you, your spouse, or your dependent in
Marketplace coverage. In that case, an-
other individual may have received the
Form 1095-A for the coverage. You
may also have to repay excess advance
payments of the premium tax credit if
you enrolled an individual in coverage
through the Marketplace, you do not
claim the individual as a dependent on
your return, and no one else claims that
individual as a dependent. For more in-
formation, see the Instructions for Form
8962.
Line 48
Foreign Tax Credit
If you paid income tax to a foreign
country or U.S. possession, you may be
able to take this credit. Generally, you
must complete and attach Form 1116 to
do so.
Exception. You do not have to com-
plete Form 1116 to take this credit if all
of the following apply.
1. 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).
2. The total of your foreign taxes
wasn't more than $300 (not more than
$600 if married filing jointly).
3. 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 some-
one else.
4. You are not filing Form 4563 or
excluding income from sources within
Puerto Rico.
5. All of your foreign taxes were:
a. Legally owed and not eligible for
a refund or reduced tax rate under a tax
treaty, and
b. Paid to countries that are recog-
nized by the United States and do not
support terrorism.
For more details on these require-
ments, see the Instructions for Form
1116.
Do you meet all five requirements
just listed?
Yes. Enter on line 48 the smaller of
(a) your total foreign taxes, or (b) the to-
tal of the amounts on Form 1040, lines
44 and 46.
No. See Form 1116 to find out if
you can take the credit and, if you can, if
you have to file Form 1116.
Line 49
Credit for Child and
Dependent Care Expenses
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 couldn't care for
himself or herself, or
Your child whom you couldn't
claim as a dependent because of the
rules for Children of divorced or separa
ted parents in the instructions for
line 6c.
For details, use Tax Topic 602 or see
Form 2441.
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Worksheet To See if You Should Fill in Form 6251—Line 45 Keep for Your Records
Be sure you have read the Exception in the instructions for this line to see if you must fill in Form 6251 instead of
using this worksheet.
Before you begin:
1. Are you filing Schedule A?
No. Skip lines 1 through 3; enter on line 4 the amount from Form 1040, line 38, and go to line 5.
Yes. Enter the amount from Form 1040, line 41 ................................................ 1.
2. If you or your spouse was age 65 or older, enter the smaller of the amount on Schedule A, line 4, or 2.5% (0.025) of
the amount on Form 1040, line 38. If zero or less, enter -0- ............................................ 2.
3. Enter the total of the amounts from Schedule A, lines 9 and 27 ......................................... 3.
4. Add lines 1 through 3 ........................................................................ 4.
5. Enter any tax refund from Form 1040, lines 10 and 21 ............................................... 5.
6. If you completed the Itemized Deductions Worksheet in the Instructions for Schedule A, enter the amount from
line 9 of that worksheet ....................................................................... 6.
7. Add lines 5 and 6 ........................................................................... 7.
8. Subtract line 7 from line 4 .................................................................... 8.
9. Enter the amount shown below for your filing status.
Single or head of household—$53,900
Married filing jointly or qualifying widow(er)—$83,800
Married filing separately—$41,900
...........
9.
10. Is the amount on line 8 more than the amount on line 9?
No.
STOP
You do not need to fill in Form 6251. Do not complete the rest of this worksheet.
Yes. Subtract line 9 from line 8 ............................................................ 10.
11. Enter the amount shown below for your filing status.
Single or head of household—$119,700
Married filing jointly or qualifying widow(er)—$159,700
Married filing separately—$79,850
...........
11.
12. Is the amount on line 8 more than the amount on line 11?
No. Enter -0-. Skip line 13. Enter on line 14 the amount from line 10, and go to line 15.
Yes. Subtract line 11 from line 8 ............................................................ 12.
13. Multiply line 12 by 25% (0.25) and enter the smaller of the result or line 9 ............................... 13.
14. Add lines 10 and 13 ......................................................................... 14.
15. Is the amount on line 14 more than $186,300 ($93,150 if married filing separately)?
Yes.
STOP
Fill in Form 6251 to see if you owe the alternative minimum tax.
No. Multiply line 14 by 26% (0.26) ......................................................... 15.
16. Add Form 1040, line 44 (minus any tax from Form 4972), and Form 1040, line 46. (If you used Schedule J to figure
your tax on Form 1040, line 44, refigure that tax without using Schedule J before including it in this
calculation) ................................................................................ 16.
Next. Is the amount on line 15 more than the amount on line 16?
Yes. Fill in Form 6251 to see if you owe the alternative minimum tax.
No. You do not owe alternative minimum tax and do not need to fill out Form 6251. Leave line 45 blank.
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Line 50
Education Credits
If you (or your dependent) paid qualified
expenses in 2016 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. How-
ever, you can't take an education credit
if any of the following applies.
You, or your spouse if filing joint-
ly, are claimed as a dependent on some-
one else's (such as your parent's) 2016
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 tui-
tion and fees on Form 1040, line 34, for
the same student.
You, or your spouse, were a non-
resident alien for any part of 2016 unless
your filing status is married filing joint-
ly.
You may be able to increase an edu-
cation credit if the student chooses to in-
clude all or part of a Pell grant or certain
other scholarships or fellowships in in-
come.
For more information, see Pub. 970,
the instructions for line 68, and IRS.gov/
EdCredit.
Line 51
Retirement Savings
Contributions Credit
(Saver's Credit)
You may be able to take this credit if
you, or your spouse if filing jointly,
made (a) contributions, other than roll-
over contributions, to a traditional or
Roth IRA (including a myRA); (b) elec-
tive deferrals to a 401(k) or 403(b) plan
(including designated Roth contribu-
tions) or to a governmental 457, SEP, or
SIMPLE plan; (c) voluntary employee
contributions to a qualified retirement
plan (including the federal Thrift Sav-
ings Plan); or (d) contributions to a
501(c)(18)(D) plan.
However, you can't take the credit if
either of the following applies.
1. The amount on Form 1040,
line 38, is more than $30,750 ($46,125 if
head of household; $61,500 if married
filing jointly).
2. The person(s) who made the
qualified contribution or elective defer-
ral (a) was born after January 1, 1999,
(b) is claimed as a dependent on some-
one else's 2016 tax return, or (c) was a
student (defined next).
You were a student if during any part
of 5 calendar months of 2016 you:
Were enrolled as a full-time stu-
dent 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 doesn't include
an on-the-job training course, corre-
spondence school, or school offering
courses only through the Internet.
For more details, use Tax Topic 610
or see Form 8880.
-47- Need more information or forms? Visit IRS.gov.
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2016 Form 1040—Line 52
Yes. Subtract line 3 from line 2.
1.
4.
5.
1
Number of qualifying children: $1,000.
Enter the result.
Is the amount on line 2 more than the amount on line 3?
If the result is not a multiple of $1,000,
increase it to the next multiple of $1,000.
For example, increase $425 to $1,000,
increase $1,025 to $2,000, etc.
No. Leave line 4 blank. Enter -0- on line 5, and go
to line 6.
Multiply the amount on line 4 by 5% (0.05). Enter the result.
4
2. 2
Enter the amount from Form 1040, line 38.
3. Enter the amount shown below for your ling status.
3
CAUTION
●Married ling jointly — $110,000
●Single, head of household, or
qualifying widow(er) — $75,000
●Married ling separately — $55,000
No.
STOP
6. Is the amount on line 1 more than the amount on line 5?
You cannot take the child tax credit on Form 1040,
line 52. You also cannot take the additional child
tax credit on Form 1040, line 67. Complete the rest
of your Form 1040.
Yes. Subtract line 5 from line 1. Enter the result.
Go to Part 2.
5
Part 1
6
2016 Child Tax Credit Worksheet—Line 52 Keep for Your Records
1. To be a qualifying child for the child tax credit, the child must be your dependent, under age 17 at the end
of 2016, and meet all the conditions in Steps 1 through 3 in the instructions for line 6c. Make sure you checked
the box on Form 1040, line 6c, column (4), for each qualifying child.
2. If you do not have a qualifying child, you cannot claim the child tax credit.
3. Be sure to see “Social security number” in the instructions for line 6c. If your qualifying child has an ITIN
instead of an SSN, le Schedule 8812.
4. Do not use this worksheet, but use Pub. 972 instead, if:
a. You are claiming the adoption credit, mortgage interest credit, District of Columbia rst-time homebuyer
credit, or residential energy efcient property credit;
b. You are excluding income from Puerto Rico; or
c. You are ling Form 2555, 2555-EZ, or 4563.
Need more information or forms? Visit IRS.gov. -48-
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2016 Form 1040—Line 52
2016 Child Tax Credit Worksheet—Continued
1040
Yes.
STOP
9.
10.
Are the amounts on lines 7 and 8 the same?
You cannot take this credit because there is no tax
to reduce. However, you may be able to take the
additional child tax credit. See the TIP below.
No. Subtract line 8 from line 7.
Is the amount on line 6 more than the amount on line 9?
Yes. Enter the amount from line 9.
Also, you may be able to take the
additional child tax credit. See the
TIP below.
No. Enter the amount from line 6.
This is your child tax
credit.
Enter this amount on
Form 1040, line 52.
You may be able to take the additional child tax credit
on Form 1040, line 67, if you answered “Yes” on line 9 or
line 10 above.
First, complete your Form 1040 through lines 66a and 66b.
Then, use Schedule 8812 to figure any additional child tax
credit.
9
10
7. 7
Enter the amount from Form 1040, line 47.
8. Add