Federal Help
What's New For 2015
For information about any additional change
to the 2015 tax law or any other developemnts
affecting Form 1040 or its instructions, go to
www.irs.gov/form1040.
Information reporting about health
coverage. If you or someone in your
family had health coverage in 2015, 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 of Form 1040. However, you do not need to
wait to receive these forms to file your
return. You may have had health care
coverage for some or all of 2015 even if
you didn’t receive a form with this information,
and you may rely on other information
about your coverage to complete
line 61 of Form 1040.For more information on why your
health provider might be asking for your
social security number, go to
www.irs.gov/ACASSN
Information reporting about
employment offer of coverage. If you or someone
in your family was an employee in 2015,
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.
This information may be relevant if you
purchased health insurance coverage for
2015 through the Health Insurance Marketplace
and wish to claim the premium
tax credit on line 69 of Form 1040. 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 do not wish to claim the premium
tax credit for 2015, you do not
need the information in Part II. For more
information on who is eligible for the
premium tax credit, see the instructions
for Form 8962.
Achieving a Better Life Experience
(ABLE) account. This is a new type of
savings account for individuals with disabilities
and their families. For 2015,
you can contribute up to $14,000. Distributions
are tax-free if used to pay the
beneficiary’s qualified disability expenses.
Do not deduct your contributions on
your tax return. For details, see Pub. 907
and the instructions for lines 21 and 59
at www.irs.gov/form1040.
Due date of return. File Form 1040 by
April 18, 2016. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of
Columbia - even if you do not live in the District of Columbia. If you live in Maine or Massachusetts, you
have until April 19, 2016. That is because
of the Patriots’ Day holiday in
those states.
Public safety officers. Certain amounts
received because of the death of a public
safety officer are nontaxable. See Pub.
525 for details.
Certain charitable contributions. A
special rule applies to cash contributions
made between January 1, 2015, and
April 15, 2015, to benefit the families of
slain New York detectives Wenjian Liu
or Rafael Ramos. See Pub. 526 for details.
Direct deposits of refund to a myRA®
account. You now can have your refund
directly deposited to a new retirement
savings program called myRA®.
This is a starter retirement account offered
by the Department of the Treasury.
See the instructions for lines 76a
through 76d at www.irs.gov/form1040. For more information and
to open a myRA account online, visit
www.myRA.gov.
Health coverage tax credit. The health
coverage tax credit, which expired at the
end of 2013, has been reinstated retroactive
to January 1, 2014. To see if you are
eligible for the credit, and to see how to
claim the credit for 2014 and 2015, visit
www.irs.gov/HCTC, or see Form 8885
and its instructions.
Earned income credit. If you didn't
have a social security number (an SSN)
by the due date of your 2015 return (including
extensions), you can't claim the
EIC on either your original or an amended
2015 return, even if you later get an
SSN. Also, if a child didn't have an SSN
by the due date of your return (including
extensions), you can't count that child as
a qualifying child in figuring the EIC on
either your original or an amended 2015 return, even if that child later gets an
SSN. See the instructions for lines 66a
and 66b at www.irs.gov/form1040.
Child tax credit. If you didn't have an
SSN (or ITIN) by the due date of your
2015 return (including extensions), you
can't claim the child tax credit on either
your original or an amended 2015 return,
even if you later get an SSN (or
ITIN). Also, no credit is allowed on either
your original or an amended 2015
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 later gets one of
those numbers. See the instructions for
line 52.
American opportunity credit. If you
didn't have an SSN (or ITIN) by the due
date of your 2015 return (including extensions),
you can't claim the American
opportunity credit on either your original
or an amended 2015 return, even if
you later get an SSN (or ITIN). Also,
you can't claim this credit on your original
or an amended 2015 return for a student
who didn't have an SSN, ATIN, or
ITIN by the due date of your return (including
extensions), even if the student
later gets one of those numbers. See
Pub. 970 and the instructions for Form
8863 for more information.
Additional child tax credit. You can't claim the
additional child tax credit if you file Form 2555, Foreign Earned
Income, or Form 2555-EZ, Foreign Earned Income Exclusion. See
Schedule 8812 and its instructions.
Health care 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 2015, the amount of your
shared responsibility payment may be
much more this year than it was last
year. Like last year, you must either:
- Indicate on line 61 that you, your
spouse (if filing jointly), and anyone you
can or do claim as a dependent had qualifying
health care coverage throughout
2015,
- Attach Form 8965 to claim an exemption
from the health care coverage
requirement for some or all of 2015, or
- Make a shared responsibility payment
if, for any month in 2015, you,
your spouse (if filing jointly), or anyone
you can or do claim as a dependent
didn’t have coverage and do not qualify
for a coverage exemption.
For more information, see the instructions
for line 61
at www.irs.gov/form1040
and Form 8965.Requirement to reconcile advance
payments of the premium tax credit.
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, which you figure on
Form 8962. The Marketplace is required to
send Form 1095-A by February 1, 2016,
listing the advance payments and other
information you need to figure your premium
tax credit. Use Form 1095-A to complete Form
8962. Attach Form 8962 to your return. Do
not attach Form 1095-A to your return.
Form W2 verification code.
The IRS is testing the use of a 16-character
code to verify certain Forms W-2. If you are
e-filing and your Form W-2 includes
a code in a box labeled “Verification Code,”
enter the code when prompted by your
software; disregard the prompt if your Form
W-2 doesn't have the code. If you are filing
a paper Form 1040, you do not have to use
the code.
Instructions
Taxpayer
Information
Lines 1- 3 - Name
Enter the information in the spaces provided. If you are married filing a
separate return, you will be able to enter your spouse’s name on Step 1.2 -
Filing Status.
TIP: If you filed a joint return for 2014 and you are filing a
joint return for 2015 with the same spouse, be sure to enter your names and
SSNs in the same order as on your 2014 return.
Name Change
If you changed your name because of marriage, divorce, etc., be sure to report
the change to the Social Security Administration (SSA) before filing your
return. This prevents delays in processing your return and issuing refunds. It
also safeguards your future social security benefits.
Line 4 - Social Security Number (SSN)
An incorrect or missing SSN can increase 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 documents, to the Social Security
Administration (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 information 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 credits 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 possible to make
sure your earnings are credited 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. For details on how to do so, see Form W-7
and its instructions.
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.
An ITIN is for tax use only. It does not entitle you to
social security benefits or change your employment or immigration status under
U.S. law.
If you receive an SSN after previously
using an ITIN, stop using your ITIN.
Use your SSN instead. Visit a local IRS
office or write a letter to the IRS explaining
that you now have an SSN and
want all your tax records combined under
your SSN. Details about what to include
with the letter and where to mail it
are at www.irs.gov/Individuals/Additional-ITIN-Information.
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 return.
Line 8 - Blindness
If you were not totally blind as of December 31, 2015, you must get a
statement certified by your eye doctor (ophthalmologist or optometrist) that:
-
You cannot see better than 20/200 in your better eye with glasses or contact
lenses, or
-
Your field of vision is 20 degrees or less.
If your eye condition is not likely to improve beyond the conditions listed
above, you can get a statement certified by your eye doctor or registered
optometrist to this effect instead.
You must keep the statement for your records.
Line 9 - Permanently and Totally Disabled
A person is permanently and totally disabled if, at any time in 2015,
the person couldn't
engage in any substantial gainful activity because of a physical
or mental condition and a doctor has determined that this condition
(a) has lasted or can be expected to last continuously for at
least a year, or (b) can be expected to lead to death.
Line 10 - Presidential Election Campaign Fund
This fund helps pay for Presidential election campaigns. The fund
reduces candidates' dependence on large contributions from individuals and
groups and places candidates on an equal financial footing in the general
election. 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 will not change.
Line 11 - Death of a Taxpayer
If a taxpayer died before filing a return for 2015, the taxpayer's
spouse or per sonal representative may have to file and sign a return for that
taxpayer. A personal representative can be an executor, administrator, or
anyone who is in charge of the deceased taxpayer's property. If the deceased
taxpayer did not have to file a return but had tax withheld, a return must be
filed to get a refund. The person who files the return must enter “Deceased,”
the deceased taxpayer's name, and the date of death across the top of the
return. If this information is not provided, it may delay the processing of the
return.
If your spouse died in 2015 and you did not remarry in 2015, or if your spouse
died in 2016 before filing a return for 2015, you can file a joint return. A
joint return should show your spouse's 2015 income before death and your income
for all of 2015. Enter “Filing as surviving spouse” in the area where you sign
the return. If someone else is the personal representative, he or she must also
sign.
The surviving spouse or personal representative should promptly notify all
payers of income, including financial institutions, of the taxpayer's death.
This will ensure the proper reporting of income earned by the taxpayer's estate
or heirs. A deceased taxpayer's social security number should not be used for
tax years after the year of death, except for estate tax return purposes.
Claiming a Refund for a Deceased Taxpayer
If you are filing a joint return as a surviving spouse, you only need to file
the tax return to claim the refund. If you are a court-appointed
representative, file the return and include a copy of the certificate that
shows your appointment. All other filers requesting the deceased tax- payer's
refund must file the return and attach Form 1310.
For more details, use Tax Topic 356 or see Pub. 559.
Taxpayer
Address
Address Change
If you plan to move after filing your return, use Form 8822 to notify
the IRS of your new address.
P.O. Box
Enter your box number only if your post office does not 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.
Filing
Status
Filing Status
Check only the filing status
that applies to you. The ones that will
usually give you the lowest tax are
listed las
-
Married filing separately.
-
Single.
-
Head of household.
-
Married filing jointly.
-
Qualifying widow(er) with dependent child.
For more information about marital
status, see Pub. 501
TIP: 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, 2015.
-
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 2015, your divorce was
not final (an interlocutory decree), you are considered married and cannot
check the box on line 1.
-
You were widowed before January 1, 2015, and did not remarry before the end of
2015. But if you have a dependent 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 2015, even if you did not live with your spouse
at the end of 2015.
-
Your spouse died in 2015 and you did not remarry in 2015.
-
You were married at the end of 2015, and your spouse died in 2016 before filing
a 2015 return.
A married couple filing jointly report their combined income and deduct their
combined allowable expenses on one return. They can file a joint return even if
only one had income or if they did not live together all year. However, both
persons must sign the return. Once you file a joint return, you cannot 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 does not pay the tax
due, the other may have to. Or, if one spouse does not report the correct tax,
both spouses may be responsible for any additional taxes assessed by the IRS.
You may want to file separately if:
-
You believe your spouse is not reporting all of his or her income, or
-
You do not want to be responsible for any taxes due if your spouse does not
have enough tax withheld or does not pay enough estimated tax.
See the instructions for Married Filing Separately.
Also see Innocent Spouse
Relief.
Nonresident aliens and dualstatus aliens. Generally, a
married couple cannot file a joint return if either spouse is a nonresident
alien at any time during the year. However, if you were a nonresident alien or
a dual-status alien and were married to a U.S. citizen or resident alien at the
end of 2015, 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 return, 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 community 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 cannot take the
student loan interest deduction, the tuition and fees deduction, the education
credits, or the earned income credit. You also cannot 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 does not
have and is not required to have an SSN or ITIN, enter “NRA.”
TIP: 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 2015. See Married persons who live
apart.
Line 4 - Head of Household
This filing status is for unmarried individuals who provide a home for
certain other persons. You are considered unmarried for this purpose if any of
the following applies.
-
You were legally separated according to your state law under a decree of
divorce or separate maintenance at the end of 2015. But if, at the end of 2015,
your divorce was not final (an interlocutory decree), you are considered
married.
-
You are married but lived apart from your spouse for the last 6 months of 2015
and you meet the other rules under 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 2015 of your parent whom you can claim as a
dependent, except under a multiple support agreement.
Your parent did not 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).
-
Any person whom you can claim as a dependent. But do not include:
-
Your child whom you claim as your dependent because of the rule for
Children of divorced or separated parents,
-
Any person who is your dependent only because he or she lived with you for all
of 2015, or
-
Any person you claimed as a dependent under a multiple support agreement. See
multiple support agreement.
-
Your unmarried qualifying child who is not your dependent.
-
Your married qualifying child who is not your dependent only because you can be
claimed as a dependent on someone else's 2015 return.
-
Your qualifying child who, even though you are the custodial parent, is not
your dependent because of the rule for Children of divorced or
separated parents.
If the child is not your dependent, 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 someone is your qualifying child, see Step 1 of the Dependents
Instructions.
Dependent. To find out
if someone is your dependent, see the Dependents Instructions.
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 if applicable.
If the person for whom you kept up a home was born or died in 2015, 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 assistance programs to pay part of the cost of keeping
up your home, you cannot 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 separated at the end of 2015, you are
considered unmarried if all of the following apply.
-
You lived apart from your spouse for the last 6 months of 2015. Temporary
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 2015.
-
Your home was the main home of your child, stepchild, or foster child for more
than half of 2015 (if half or less, see Exception to
time lived with you).
-
You can claim this child as your dependent or could claim the child except that
the child's other parent can claim him or her under the rule for Children
of divorced or separated parents.
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, decree, or other order of
any court of competent jurisdiction.
Line 5 - Qualifying Widow(er) With Dependent
Child
You can check the box on line 5 and use joint return tax rates for 2015
if all of the following apply
-
Your spouse died in 2013 or 2014 and you did not remarry before the end of
2015.
-
You have a child or stepchild you can claim as a dependent. This does not
include a foster child.
-
This child lived in your home for all of 2015. If the child did not live with
you for the required time, see Exception to time lived
with you.
-
You paid over half the cost of keeping up your home.
-
You could have filed a joint return with your spouse the year he or she died,
even if you did not actually do so.
If your spouse died in 2015, you cannot file as qualifying widow(er) with
dependent child. Instead, see Status 2.
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.
Dependent.
To find out if someone is your
dependent, see Dependents Instructions.
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 juvenile facility, count as time lived in the home. Also see Kidnapped
child if applicable.
A child is considered to have lived with you for all of 2015 if the child was
born or died in 2015 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 assistance programs to pay part of the cost of keeping
up your home, you cannot 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.
Spouse
Information
Line 11 - Death of Spouse
If your spouse died in 2015 and you did not remarry by the end of 2015,
enter the date of death if you could have taken an exemption for your spouse on
the date of death. For other filing instructions, see Death of a
Taxpayer.
Special
Cases
Line 2 - Nontaxable Combat Pay Election
If you were a member of the U.S. Armed Forces who served in a combat
zone, certain pay is excluded from your income. See Combat Zone Exclusion
in Pub. 3. You can elect to include this pay in your earned income when
figuring the EIC. The amount of your nontaxable combat pay should be shown in
box 12 of Form(s) W-2 with code Q. If you are filing a joint return and both
you and your spouse received nontaxable combat pay, you can each make your own
election. In other words, if one of you makes the election, the other one can
also make it but does not have to.
Line 4 - Third Party Designee
If you want to allow your preparer, a friend, a family member, or any
other person you choose to discuss your 2015 tax return with the IRS, check the
“Yes” box in the “Third Party Designee” area of your return. Also, enter the
designee's name, phone number, and any five digits the designee chooses as his
or her personal identification number (PIN).
If you check the “Yes” box, you, and your spouse if filing a joint return, are
authorizing the IRS to call the designee to answer any questions that may arise
during the processing of your return. You are also authorizing the designee to:
-
Give the IRS any information that is missing from your return,
-
Call the IRS for information about the processing of your return or the status
of your refund or payment(s),
-
Receive copies of notices or transcripts related to your return, upon request,
and
-
Respond to certain IRS notices about math errors, offsets, and return
preparation.
You are not authorizing the designee to receive any refund check, bind you to
anything (including any additional tax liability), or otherwise represent you
before the IRS. If you want to expand the designee’s authorization, see Pub.
947.
The authorization will automatically end no later than the due date (without
regard to extensions) for filing your 2016 tax return. This is April 18, 2017,
for most people.
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.
Step 1: Do You Have a Qualifying Child?
A qualifying childis 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 2015 and younger than you (or your spouse, if filing
jointly), or
-
Under age 24 at the end of 2015, a student, and younger
than you (or your spouse, if filing jointly), or
-
Any age and permanently and totally disabled
AND
-
Who did not provide over half of his or her own support for 2015 (see Pub. 501)
AND
-
Who is not filing a joint return for 2015 or is filing a joint return for 2015
only as a claim for refund of withheld income
tax or estimaed tax paid (see Pub. 501 for
details and examples)
AND
CAUTION: If the child meets the conditions to be a
qualifying child of any other person (other than your spouse if filing jointly)
for 2015, see Qualifying child of more than one person.
If you have a child who meets the conditions to be your qualifying child,
continue to Step 2. If not, skip to Step 4.
Step 2: Is Your Qualifying Child Your Dependent?
-
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.)
-
Yes - Continue to line 2.
-
No - Stop, you can't claim this child as a dependent. Go to the next page.
-
Was the child married?
-
Could you, or your spouse if filing jointly, be claimed as a dependent on
someone else’s 2015 tax return? See Steps 1,
2, and 4.
-
Yes - You can't claim any dependents. Go to the next page.
-
No - You can claim this child as a dependent. Complete lines 1-4 and line 7 for
this child. Then, go to Step 3.
Step 3: Does Your Qualifying Child Qualify You for the
Child Tax Credit?
-
Was the child under age 17 at the end of 2015?
-
Yes - Continue.
-
No - Stop. This child is not a qualifying child for the child tax credit. Go to
the next page.
-
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.)
-
Yes - This child is a qualifying child for the child tax credit. Check the box
on line 10.
-
No - Stop. This child is not a qualifying child for the child tax credit. Go to
the next page.
Step 4: 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 did not violate local law. If the
person did not live with you for the required time, see Exception
to time lived with you
AND...
-
Who was not a qualifying child (see Step 1) of any
taxpayer for 2015. For this purpose, a person is not a taxpayer if he or she is
not required to file a U.S. income tax return and either does
not 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...
AND...
Step 4 continued:
-
Does any person meet the conditions to be your qualifying relative?
-
Yes - Continue.
-
No - Stop, go to the next page.
-
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.)
-
Yes - Continue.
-
No - Stop, you can't claim this person as a dependent. Go to the next page.
-
Was your qualifying relative married?
-
Could you, or your spouse if filing jointly, be claimed as a dependent on
someone else’s 2015 tax return? See Steps 1,
2, and 4.
-
Yes - Stop, you can't claim any dependents. Go to the next page.
-
No - You can claim this person as a dependent. Complete lines 1-9, but do not
check line 10.
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 (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 2015
return (including extensions), you can't claim the child tax
credit on either your original or an amended 2015 return,
even if you later get an SSN (or ITIN). Also, no child tax
credit is allowed on your original or an amended 2015 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 later gets one of those numbers. See the
instructions for line 52.
Children of divorced or separated parents. A
child will be treated as the qualifying child or qualifying relative of his or
her noncustodial parent if all of the
following conditions apply.
-
The parents are divorced, legally separated, separated under a written
separation agreement, or lived apart at all times during the last 6 months of
2015 (whether or not they are or were married)
-
The child received over half of his or her support for 2015 from the parents
(and the rules on Multiple support agreements do
not apply). Support of a child received from a parent’s spouse is treated as
provided by the parent.
-
The child is in custody of one or both of the parents for more than half of
2015.
-
Either of the following applies.
-
The custodial parent signs Form 8332 or a
substantially similar statement that he or she
won't claim the child as a dependent for 2015,
and the noncustodial parent includes a copy of
the form or statement with his or her return. If
the divorce decree or separation agreement went
into effect after 1984 and before 2009, the
noncustodial parent may be able to include
certain 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.
-
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
2015.
If conditions (1) through (4) apply, only the
noncustodial parent can claim the child for purposes of
the dependency exemption (line 6c) and the child tax
credits (lines 52 and 67). However, 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 2015, 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 2015. 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.
-
The noncustodial parent can claim the child as a dependent without regard to
any condition, such as payment of support.
-
The other parent will not claim the child as a dependent.
-
The years for which the claim is released.
The noncustodial parent must attach all of the following pages 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.
Caution. 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
noncustodial parent cannot attach pages from the decree or agreement instead 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 parent paying support.
Released 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
return. For details, see Form 8332.
Exception to citizen test. If you
are a U.S. citizen or U.S. national and your adopted child lived with you all
year as a member 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 household) is permanently and totally disabled,
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 or Kidnapped
child.
If the person meets all other requirements to be your qualifying child but was
born or died in 2015, the person is considered to have lived with you for more
than half of 2015 if your home was this person's home for more than half the
time he or she was alive in 2015.
Any other person is considered to have lived with you for all of 2015 if the
person was born or died in 2015 and your home was this person's home for the
entire time he or she was alive in 2015.
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 enforcement authorities to have been kidnapped by someone who
is not a family member, you may be able to take the child into account in
determining your eligibility for head of household or qualifying 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).
Married person. If the person is
married and files a joint return, you cannot claim that person as your
dependent. Go to Form 1040, line 7. However, if the person is married but does
not file a joint return or files a joint return only to claim a refund of
withheld income tax or estimated tax paid, you may be able to claim him or her
as a dependent. (See Pub. 501 for details and examples.) Go to Step
2, question 3 (for a qualifying child) or Step 4,
question 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 2015, the person
cannot engage in any substantial gainful activity because of a physical or
mental condition and a doctor has determined that this condi-tion 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 applies.
-
Dependency exemption.
-
Child tax credits.
-
Head of household filing status.
-
Credit for child and dependent care expenses.
-
Exclusion for dependent care benefits (Form 2441, Part III).
-
Earned income credit.
No other person can take any of the six tax benefits listed above unless he or
she has a different qualifying child. If you and any other person can claim the
child as a qualifying child, the following 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 2015.
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 2015.
- 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 2015.
- 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 qualifying child of the person who
had the highest AGI for 2015, 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 qualifying 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 qualifying child, your daughter is the qualifying
child of your mother.
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 cannot claim any benefits based on this child.
Go to Form 1040, line 7.
Social security number. You must
enter each dependent's social 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 exemption claimed for the dependent
and reduce or disallow any other tax benefits (such as the child tax credit)
based on that dependent. If the name or SSN on the dependent's social security
card is not correct or you need to get an SSN for your dependent, contact the
Social Security Administration. See Social Security Number (SSN).
If your dependent won't have a number by the date your return is due, see
What
if You Cannot File on Time?.
If your dependent child was born and died in 2015 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 certificate, or hospital records. The document must show the
child was born alive.
Student. A student is a child who
during any part of 5 calendar months of 2015 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 does not include an on-the-job
training course, correspondence school, or school of-fering courses only
through the Internet.
Innocent Spouse Relief
Generally, both you and your spouse are each responsible for paying the
full amount of tax, interest, and penalties on your joint return. However, you
may qualify for relief from liability for tax on a joint return if
-
there is an understatement of tax because your spouse omitted income or claimed
false deductions or credits
-
you are divorced, separated, or no longer living with your spouse, or
-
given all the facts and circumstances, it would not be fair to hold you liable
for the tax
You may also qualify for relief if you were a married resident of a community
property state but did not file a joint return and are now liable for an
underpaid or understated tax. File Form 8857 to request relief. In some cases,
Form 8857 may need to be filed within 2 years of the date on which the IRS
first attempted to collect the tax from you. Do not file Form 8857 with your
Form 1040.
For more information, see Pub. 971 and Form 8857 or you can call the Innocent
Spouse office toll-free at 1-855-851-2009.
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 domestic partner in Nevada, Washington, or
California generally must report half the combined community
income of the individual and his or her domestic partner.
See Form 8958 and Pub. 555.
What If You Can't File on Time?
You can get an automatic 6-month extension
if, no later than the date your return
is due, you file Form 4868. For details,
see Form 4868. Instead of filing
Form 4868, you can apply for an automatic
extension by making an electronic
payment by the due date of your return.CAUTION. An automatic 6-month extension
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 service
on duty outside the United States and
Puerto Rico.
This extension gives you an extra 2 months to
file and pay the tax, but interest 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, 2016, you
file Form 4868. This 4-month extension of time
to file doesn't extend the time to pay your tax.
See Form 4868.
Form
1040
Unemployment Compensation (line 19) You
should receive a Form 1099-G showing in box 1 the total unemployment
compensation paid to you in 2015. Report this amount on line 19. However, if
you made contributions to a governmental unemployment compensation program and
you are not itemizing 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 2015 and you
repaid any of it in 2015, subtract the amount you repaid from the total 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 2015, 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 repaid more
than $3,000, see Repayments in Pub. 525 for details on how to report the
repayment.
W-2 - Missing or Incorrect Form W-2?
Your employer is required to provide or send Form W-2 to you no later
than February 1, 2016. If you do not receive it by early February, use
TeleTax topic 154 to find out what to do. Even if you do not get a Form
W-2, you must still report your earnings on line 1. If you lose your Form W-2
or it is incorrect, ask your employer for a new one.
1099-INT
If you received any tax-exempt interest, such as from
municipal bonds, each payer should send you a Form 1099-INT.
1099-OID
Original issue discount (OID) is the excess of an obligation’s stated
redemption price at maturity over its issue price (acquisition price for a
stripped bond or coupon). OID is taxable as interest over the life of the
obligation. If you are the holder of an OID obligation, generally you must
include an amount of OID in your gross income each year you hold the
obligation. Obligations that may have OID include a bond, debenture, note,
certificate, or other evidence of indebtedness having a term of more than 1
year. For example, the OID rules may apply to certificates of deposit (CDs),
time deposits, bonus savings plans, and other deposit arrangements, especially
if the payment of interest is deferred until maturity. In addition, the OID
rules apply to Treasury inflation-protected securities. See Pub. 550,
Investment Income and Expenses, for more information.
If, as the record holder, you receive Form 1099-OID showing amounts belonging to
another person, you are considered a nominee recipient. Complete a Form
1099-OID for each of the other owners showing the amounts allocable to each.
File Copy A of the form with the IRS. Furnish Copy B to each owner. List
yourself as the “payer” and the other owner as the “recipient.” File Form(s)
1099-OID with Form 1096, Annual Summary and Transmittal of U.S. Information
Returns, with the Internal Revenue Service Center for your area. On Form 1096,
list yourself as the “filer.” A husband or wife is not required to file a
nominee return to show amounts owned by the other. If you bought or sold an
obligation during the year and you are not a nominee, you are not required to
issue or file Form 1099-OID showing the OID or stated interest allocable to the
seller/buyer of the obligation.
The information provided may be different for covered and
noncovered securities. For a description of covered securities, see the
Instructions for Form 8949. For a covered security acquired with acquisition
premium, your payer may report either (1) a net amount of OID that reflects the
offset of OID by the amount of acquisition premium amortization for the year or
(2) a gross amount for both the OID and the acquisition premium amortization
for the year. For a noncovered security acquired with acquisition premium, your
payer is only required to report the gross amount of OID.
Seller-Financed Mortgages
If you sold your home or other property and the buyer used the
property as a personal residence, be sure to show the buyer’s name, address,
and SSN. You must also let the buyer know your SSN. If you do not show the
buyer’s name, address, and SSN, or let the buyer know your SSN, you may have to
pay a $50 penalty.
1099-R
Generally, distributions from pensions, annuities,
profit-sharing and retirement plans (including section 457 state and local
government plans), IRAs, insurance contracts, etc., are reported to recipients
on Form 1099-R.
Form W-2G
The payer must furnish a Form W-2G to you if you
receive:
-
$1,200 or more in gambling winnings from bingo or slot machines;
-
$1,500 or more in proceeds (the amount of winnings minus the amount of the
wager) from keno;
-
More than $5,000 in winnings (reduced by the wager or buy-in) from a poker
tournament;
-
$600 or more in gambling winnings (except winnings from bingo, keno, slot
machines, and poker tournaments) and the payout is at least 300 times the
amount of the wager; or
-
Any other gambling winnings subject to federal income tax withholding.
Keep an accurate record of your winnings and losses, and be able to prove those
amounts with receipts, tickets, statements, or similar items that you have
saved. For additional information, see Pub. 529, Miscellaneous Deductions, and
Pub. 525, Taxable and Nontaxable Income.
Schedule C-EZ
You can use Schedule C-EZ instead of Schedule C if you operated a
business or practiced a profession as a sole proprietorship or qualified joint
venture, or you were a statutory employee and you have met all the requirements
listed on the previous page.
For more information on electing to be taxed as a qualified joint venture
(including the possible social security benefits of this election), see
Qualified Joint Venture in the instructions for Schedule C.
You can also go to IRS.gov and enter "qualified joint venture" in the search
box.
Schedule C - Profit or Loss from Business
Use Schedule C (Form 1040) to report income or loss
from a business you operated or a profession you practiced as a sole
proprietor. An activity qualifies as a business if your primary purpose for
engaging in the activity is for income or profit and you are involved in the
activity with continuity and regularity. For example, a sporadic activity or a
hobby does not qualify as a business.
Also, use Schedule C to report (a) wages and expenses you had as a statutory
employee, (b) income and deductions of qualified joint ventures, and (c)
certain income shown on Form 1099-MISC, Miscellaneous Income. See the Instructions
for Recipient (back of Copy B of Form 1099-MISC) for the types of
income to report on Schedule C.
Small businesses and statutory employees with expenses of $5,000 or less may be
able to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for
details.
You may be subject to state and local taxes and other requirements such as
business licenses and fees. Check with your state and local governments for
more information.
Schedule C - Other Expenses
Include all ordinary and necessary business expenses not deducted
elsewhere on Schedule C. Enter the type and amount of each expense separately
in a new copy. Do not include the cost of business equipment or furniture,
replacements or permanent improvements to property, or personal, living, and
family expenses. Do not include charitable contributions. Also, you cannot
deduct fines or penalties paid to a government for violating any law. For
details on business expenses, see Pub. 535.
Amortization. Include amortization in this part. For
amortization that begins in 2014, you must complete and attach Form 4562.
You can elect to amortize such costs as:
-
The cost of pollution-control facilities;
-
Amounts paid for research and experimentation;
-
Qualified revitalization expenditures;
-
Amounts paid to acquire, protect, expand, register, or defend trademarks or
trade names;
-
Goodwill and certain other intangibles.
In most cases, you cannot amortize real property construction period interest
and taxes. Special rules apply for allocating interest to real or personal
property produced in your trade or business.
For a complete list, see the
Instructions for Form 4562, Part VI.
At-risk loss deduction. Any loss from this business that was
not allowed as a deduction last year only because of the at-risk rules is
treated as a deduction allocable to this business in 2014.
Bad debts. Include debts and partial debts from sales or
services that were included in income and are definitely known to be worthless.
If you later collect a debt that you deducted as a bad debt, include it as
income in the year collected. For details, see Pub. 535.
Business start-up costs. If your business began in 2014, you
can elect to deduct up to $5,000 of certain business start-up costs. The $5,000
limit is reduced (but not below zero) by the amount by which your total
start-up costs exceed $50,000. Your remaining start-up costs can be amortized
over a 180-month period, beginning with the month the business began.
For details, see chapters 7 and 8 of Pub. 535. For amortization that begins in
2014, you must complete and attach Form 4562.
Costs of making commercial buildings energy efficient. You may
be able to deduct part or all of the cost of modify-ing existing commercial
buildings to make them energy efficient. For details, see section 179D, Notice
2006-52, No-tice 2008-40, and Notice 2012-26. No-tice 2006-52, 2006-26 I.R.B.
1175, is available at
www.irs.gov/irb/2006-26_IRB/ar11.html. Notice 2008-40, 2008-14 I.R.B.
725, is available at
www.irs.gov/irb/2008-14_IRB/ar12.html. Notice 2012-26, 2012-17 I.R.B.
847, is available at
www.irs.gov/irb/2012-17_IRB/ar08.html.
Deduction for removing barriers to individuals with disabilities and the
elderly. You may be able to deduct up to $15,000 of costs paid or
incurred in 2014 to remove architectural or transportation barriers to
individuals with disabilities and the elderly. However, you cannot take both a
credit (on Form 8826) and a deduction for the same expenditures.
Excess farm loss deduction. Any loss from this business
activity, which in-cludes processing a farm commodity as part of your farming
business, that was not allowed last year because of the excess farm loss rules
is treated as a deduction allocable to this business activity in 2014.
See the Instructions for Schedule F for a definition of farming business for this purpose
and for more information about excess farm losses.
Forestation and reforestation costs. Reforestation costs are
generally capital expenditures. However, for each qualified timber property,
you can elect to expense up to $10,000 ($5,000 if married filing separately) of
qualifying reforestation costs paid or incurred in 2014.
You can elect to amortize the remaining costs over 84 months. For amortization
that begins in 2014, you must complete and attach Form 4562.
The amortization election does not apply to trusts and the expense election does
not apply to estates and trusts. For details on reforestation expenses, see
chapters 7 and 8 of Pub. 535.
What is Teletax? - Recorded Tax Information
Recorded tax information is available 24 hours a day, 7 days a week.
Select the number of the topic you want to hear. Then, call 1-800-829-4477.
Have paper and pencil handy to take notes.
Topics by Internet
TeleTax topics are also available at www.irs.gov/taxtopics.
Lines 1a and 8a - Transactions Not Reported on Form
8949
You can report on line 1a (for short-term transactions) or
line 8a (for long-term transactions) the aggregate totals from any transactions
(except sales of collectibles) for which:
-
You received a Form 1099-B (or substitute statement) that
shows basis was reported to the IRS and does not show any adjustments in box
1g, and
-
You do not need to make any adjustments to the basis or
type of gain or loss (short term or long term) reported on Form 1099-B (or
substitute statement), or to your gain or loss.
If you choose to report these transactions on lines 1a and
8a, do not report them on Form 8949. You do not need to attach a statement to
explain the entries on lines 1a and 8a and, if you efile your return, you
do not need to file Form 8453.
Part III - Capital Gain
Distributions - Line 7
These distributions are paid by a mutual fund (or other
regulated investment company) or real estate investment trust from its net
realized long-term capital gains. Distributions of net realized short-term
capital gains are not treated as capital gains. Instead, they are included on
Form 1099-DIV as ordinary dividends. Enter on Schedule D, line 7, the total
capital gain distributions paid to you during the year, regardless of how long
you held your investment. This amount is shown in box 2a of Form 1099-DIV
If you received capital gain distributions as a nominee (that
is, they were paid to you but actually belong to someone else), report on
Schedule D, line 7, only the amount that belongs to you. Attach a statement
showing the full amount you received and the amount you received as a nominee.
See the Instructions for Schedule B to learn about the requirement for you to
file Forms 1099-DIV and 1096.
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