1040 Line 44 Instructions
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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.
Need more information or forms? Visit IRS.gov. -42-
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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 2555EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line.
Need more information or forms? Visit IRS.gov. -44-
