Previous Page: Instructions for Form 1040 - Adjusted Gross Income Next Page: Instructions for Form 1040 - Other Taxes Use   to find additional occurrences of topic items.

taxmap/instr/i1040gi-012.htm#TXMP71bb9aee Tax and Credits(p32)

taxmap/instr/i1040gi-012.htm#TXMP759ad2f7 Line 39a(p32)

If you were born before January 2, 1943, or were blind at the end of 2007, 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, 1943, or was blind at the end of 2007, also check the appropriate box(es) for your spouse. Be sure to enter the total number of boxes checked.

taxmap/instr/i1040gi-012.htm#TXMP615958d4 Blindness(p32)

If you were partially blind as of December 31, 2007, you must get a statement certified by your eye doctor or registered 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.

taxmap/instr/i1040gi-012.htm#TXMP136c7cb3 Line 39b(p32)

If your filing status is married filing separately (box 3 is checked), and your spouse itemizes deductions on his or her return, check the box on line 39b. Also check that box if you were a dual-status alien. But if you were a dual-status alien and you file a joint return with your spouse who was a U.S. citizen or resident alien at the end of 2007 and you and your spouse agree to be taxed on your combined worldwide income, do not check the box.

taxmap/instr/i1040gi-012.htm#TXMP3679ca1a Line 40(p32)

taxmap/instr/i1040gi-012.htm#TXMP659d2004 Itemized Deductions or Standard Deduction(p32)

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

If you checked the box on line 39b, your standard deduction is zero.

taxmap/instr/i1040gi-012.htm#TXMP52688373 Itemized Deductions(p32)

To figure your itemized deductions, fill in Schedule A.

taxmap/instr/i1040gi-012.htm#TXMP1dd4829b Standard Deduction(p32)

Most people can find their standard deduction by looking at the amounts listed under All others to the left of Form 1040, line 40. But if you, or your spouse if filing jointly, can be claimed as a dependent on someone's 2007 return or you checked any box on line 39a, use the worksheet or the chart on page 32, whichever applies, to figure your standard deduction. Also, if you checked the box on line 39b, your standard deduction is zero, even if you were born before January 2, 1943, or were blind.

taxmap/instr/i1040gi-012.htm#TXMP31140e01 Line 44(p34)

taxmap/instr/i1040gi-012.htm#TXMP14cf4394 Tax(p34)

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

• Tax on your taxable income. Figure the tax using one of the methods described on this page and page 34.
• Tax from Form 8814 (relating to the election to report child's interest or dividends). Check the appropriate box.
• Tax from Form 4972 (relating to lump-sum distributions). Check the appropriate box.
• Tax from Form 8889, Part III (relating to health savings accounts). Check the appropriate box.
• Recapture of an education credit. You may owe this tax if you claimed an education credit in an earlier year, and either tax-free educational assistance or a refund of qualified expenses was received in 2007 for the student. See Form 8863 for more details. Enter the amount and ECR in the space next to line 44.
• Additional tax on recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property. See the instructions for line 21 on page 24. Enter the amount and FITPP in the space next to line 44.

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

taxmap/instr/i1040gi-012.htm#TXMP1a2b9d23 m Yes.(p34)

See Pub. 967 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you did not pay enough, we will send you a bill.

taxmap/instr/i1040gi-012.htm#TXMP3f476d74 m No.(p34)

Use one of the following methods to figure your tax.

taxmap/instr/i1040gi-012.htm#TXMP4fb278a0 Tax Table or Tax Computation Worksheet.(p34)

If your taxable income is less than $100,000, you must use the Tax Table that begins on page 63 to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet on  
page 75.

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

taxmap/instr/i1040gi-012.htm#TXMP33d2e029 Form 8615.(p34)

Form 8615 must generally be used to figure the tax for any child who was under age 18 at the end of 2007, and who had more than $1,700 of investment income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions). But if the child files a joint return for 2007 or if neither of the child's parents was alive at the end of 2007, do not use Form 8615 to figure the child's tax. Also, a child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8615 for such a child.

taxmap/instr/i1040gi-012.htm#TXMP1c0e5cf2 Schedule D Tax Worksheet.(p34)

If you have to file Schedule D and Schedule D, line 18 or 19, is more than zero, use the Schedule D Tax Worksheet on page D-10 of the Instructions for Schedule D to figure your tax.

taxmap/instr/i1040gi-012.htm#TXMP51d25f7d Qualified Dividends and Capital Gain Tax Worksheet.(p34)

If you do not have to use the Schedule D Tax Worksheet (see above), use the worksheet on page 35 to figure your tax if any of the following applies.

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

taxmap/instr/i1040gi-012.htm#TXMP4df13bec Schedule J.(p35)

If you had income from farming or fishing, your tax may be less if you choose to figure it using income averaging on Schedule J.

taxmap/instr/i1040gi-012.htm#TXMP75bbbea7 Foreign Earned Income Tax Worksheet.(p35)

If you claimed the foreign earned income exclusion or the housing exclusion on Form 2555 or Form 2555-EZ, you must figure your tax using the worksheet below.

taxmap/instr/i1040gi-012.htm#TXMP46133e97 Line 45(p37)

taxmap/instr/i1040gi-012.htm#TXMP7440a77f Alternative Minimum Tax(p37)

Use the worksheet below to see if you should fill in Form 6251.

An electronic version of this worksheet is available on  www.irs.gov. Enter AMT Assistant in the search box on the website.

taxmap/instr/i1040gi-012.htm#TXMP268fda00 Exception.(p37)

Fill in Form 6251 instead of using the worksheet below if you claimed or received any of the following items.

• Accelerated depreciation.
• Stock by exercising an incentive stock option and you did not dispose of the stock in the same year.
• Tax-exempt interest from private activity bonds.
• Intangible drilling, circulation, research, experimental, or mining costs.
• Amortization of pollution-control facilities or depletion.
• Income or (loss) from tax-shelter farm activities or passive activities.
• Income from long-term contracts not figured using the percentage-of-completion method.
• Interest paid on a home mortgage not used to buy, build, or substantially improve your home.
• Investment interest expense reported on Form 4952.
• Net operating loss deduction.
• Alternative minimum tax adjustments from an estate, trust, electing large partnership, or cooperative.
• Section 1202 exclusion.
• Credit for child care and dependent care expenses.
• Credit for the elderly or the disabled.
• Education credits.
• Residential energy credits.
• Mortgage interest credit.
• District of Columbia first-time homebuyer credit.
• Any general business credit claimed on Form 3800.
• Empowerment zone and renewal community employment credit.
• Qualified electric vehicle credit.
• Alternative motor vehicle credit.
• Alternative fuel vehicle refueling property credit.
• Credit for prior year minimum tax.

Form 6251 should be filled in for a child who was under age 18 at the end of 2007 if the child's adjusted gross income from Form 1040, line 38, exceeds the child's earned income by more than $6,300.

taxmap/instr/i1040gi-012.htm#TXMP57e2a045 Line 47(p38)

taxmap/instr/i1040gi-012.htm#TXMP048281f0 Credit for Child and Dependent Care Expenses(p38)

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

1. Your qualifying child under age 13 whom you claim as your dependent.
2. Your disabled spouse who could not care for himself or herself, and who lived with you for more than half the year.
3. Any disabled person not able to care for himself or herself, who lived with you for more than half the year, and whom you claim as a dependent.
4. Any disabled person not able to care for himself or herself, who lived with you for more than half the year, and whom you could have claimed as a dependent except that:
   1. The person filed a joint return,
   2. The person had $3,400 or more of gross income, or
   3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2007 return.
5. Your child whom you could not claim as a dependent because of the rules for that begin on page 16.

For details, use TeleTax topic 602 (see page 79) or see Form 2441.

taxmap/instr/i1040gi-012.htm#TXMP38a2422c Line 48(p38)

taxmap/instr/i1040gi-012.htm#TXMP5d1fdd54 Credit for the Elderly or the Disabled(p38)

You may be able to take this credit if by the end of 2007 (a) you were age 65 or older, or (b) you retired on permanent and total disability and you had taxable disability income. But you usually cannot take the credit if the amount on Form 1040, line 38, is $17,500 or more ($20,000 or more if married filing jointly and only one spouse is eligible for the credit; $25,000 or more if married filing jointly and both spouses are eligible; $12,500 or more if married filing separately). See Schedule R and its instructions for details.

taxmap/instr/i1040gi-012.htm#TXMP2db063c1 Credit figured by the IRS.(p38)

If you can take this credit and you want us to figure it for you, see the Instructions for Schedule R.

taxmap/instr/i1040gi-012.htm#TXMP4fa572be Line 49(p38)

taxmap/instr/i1040gi-012.htm#TXMP76df3e25 Education Credits(p38)

If you (or your dependent) paid qualified expenses in 2007 for yourself, your spouse, or your dependent to enroll in or attend an eligible educational institution, you may be able to take an education credit. See Form 8863 for details. However, you cannot take an education credit if any of the following applies.

• You, or your spouse if filing jointly, are claimed as a dependent on someone's (such as your parent's) 2007 tax return.
• Your filing status is married filing separately.
• The amount on Form 1040, line 38, is $57,000 or more ($114,000 or more if married filing jointly).
• You are taking a deduction for tuition and fees on Form 1040, line 34, for the same student.
• You, or your spouse, were a nonresident alien for any part of 2007 unless your filing status is married filing jointly.

taxmap/instr/i1040gi-012.htm#TXMP2f62fb59 Line 50(p38)

taxmap/instr/i1040gi-012.htm#TXMP75e36868 Residential Energy Credits(p38)

Complete Form 5695 to claim either of the following credits.

taxmap/instr/i1040gi-012.htm#TXMP1aeeda45 Nonbusiness energy property credit.(p38)

You may be able to take this credit for any of the following improvements to your main home located in the United States in 2007 if they are new and meet certain requirements for energy efficiency.

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

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

• Certain electric heat pump water heaters, electric heat pumps, geothermal heat pumps, central air conditioners, and natural gas, propane, or oil water heaters.
• A qualified natural gas, propane, or oil furnace or hot water boiler.
• An advanced main air circulating fan used in a natural gas, propane, or oil furnace.

For details, see Form 5695.

taxmap/instr/i1040gi-012.htm#TXMP5827e7e9 Residential energy efficient property credit.(p38)

You may be able to take this credit if you paid for any of the following during 2007.

• Qualified solar electric property for use in your home located in the United States.
• Qualified solar water heating property for use in your home located in the United States.
• Qualified fuel cell property installed on or in connection with your main home located in the United States.

For details, see Form 5695.

taxmap/instr/i1040gi-012.htm#TXMP4b180c00 Special rule.(p38)

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

taxmap/instr/i1040gi-012.htm#TXMP5865cbcf Line 51(p38)

taxmap/instr/i1040gi-012.htm#TXMP47f6b4b0 Foreign Tax Credit(p38)

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

taxmap/instr/i1040gi-012.htm#TXMP3722f5ea Exception.(p39)

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

1. All of your gross foreign source 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. If you had dividend income from shares of stock, you held those shares for at least 16 days.
3. You are not filing Form 4563 or excluding income from sources within Puerto Rico.
4. The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly).
5. All of your foreign taxes were:
   1. Legally owed and not eligible for a refund, and
   2. Paid to countries that are recognized by the United States and do not support terrorism.

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

Do you meet all five requirements above?

taxmap/instr/i1040gi-012.htm#TXMP67d28a8e m Yes.(p39)

See Election to Claim the Foreign Tax Credit Without Filing Form 1116 in the Instructions for Form 1116 to figure the amount to enter on Form 1040, line 51.

taxmap/instr/i1040gi-012.htm#TXMP659b78ea m No.(p39)

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

taxmap/instr/i1040gi-012.htm#TXMP74d4db8b Line 52—Child Tax Credit(p40)

taxmap/instr/i1040gi-012.htm#TXMP33ab7211 (p40)

Step 1.	Make sure you have a qualifying child for the child tax credit (see the instructions for line 6c).
Step 2.	Make sure that for each qualifying child you either checked the box on Form 1040, line 6c, column (4), or completed Form 8901 (if the child is not your dependent).
Step 3.	Answer the questions on this page to see if you can use the worksheet on page 40 to figure your credit or if you must use Pub. 972.

taxmap/instr/i1040gi-012.htm#TXMP6442830d  Questions   Who Must Use  Pub. 972(p40)

1.

Is the amount on Form 1040, line 38, more than the amount shown below for your filing status? ●  Married filing jointly – $110,000 ●  Single, head of household, or qualifying widow(er) – $75,000 ●  Married filing separately – $55,000 Yes. Stop.   You must use Pub. 972 to figure your credit. No.   Go to question 2.

2.

Are you claiming any of the following credits? ●  Residential energy credits, Form 5695. ●  Retirement savings contributions credit, Form 8880. ●  Mortgage interest credit, Form 8396. ●  District of Columbia first-time homebuyer credit, Form 8859. ●  Adoption credit, Form 8839. Yes. Stop.   You must use Pub. 972 to figure your child tax credit. You will also need the form(s) listed above for any credit(s) you are claiming. No.   Continue...

3.

Are you excluding income from Puerto Rico or are you filing any of the following forms? ●  Form 2555 or 2555-EZ (relating to foreign earned income). ●  Form 4563 (exclusion of income for residents of American Samoa). Yes. Stop.   You must use Pub. 972 to figure your credit. No.   Use the worksheet on page 40 to figure your credit.

taxmap/instr/i1040gi-012.htm#TXMP4994551d Line 53(p42)

taxmap/instr/i1040gi-012.htm#TXMP04232c9b Retirement Savings Contributions Credit (Saver's Credit)(p42)

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

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

1. The amount on Form 1040, line 38, is more than $26,000 ($39,000 if head of household; $52,000 if married filing jointly).
2. The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1990, (b) is claimed as a dependent on someone else's 2007 tax return, or (c) was a student (defined below).

You were a student if during any part of 5 calendar months of 2007 you:

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

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

For more details, use TeleTax topic 610 (see page 79) or see Form 8880.

taxmap/instr/i1040gi-012.htm#TXMP280f3f42 Line 54(p42)

Include the following credits on line 54 and check the appropriate box(es). To find out if you can take the credit, see the form indicated.

• Mortgage interest credit. If a state or local government gave you a mortgage credit certificate, see Form 8396.
• District of Columbia first-time homebuyer credit. See Form 8859.
• Adoption credit. You may be able to take this credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2007. See the Instructions for Form 8839.

taxmap/instr/i1040gi-012.htm#TXMP5f080fd8 Line 55(p42)

taxmap/instr/i1040gi-012.htm#TXMP69955b6e Other Credits(p42)

Include the following credits on line 55 and check the appropriate box(es). If box c is checked, also enter the applicable form number. To find out if you can take the credit, see the form or publication indicated.

• Credit for prior year minimum tax. If you paid alternative minimum tax in a prior year, see Form 8801.
• Qualified electric vehicle credit. This credit does not apply to vehicles placed in service after 2006. However, you may be able to take the credit if you received a 2006 Schedule K-1 showing the credit from an entity with a fiscal year ending in 2007 or have an unallowed passive activity credit from a prior year. See Form 8834.
• General business credit. This credit consists of a number of credits that usually apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See Form 3800 or Pub. 334.
• Empowerment zone and renewal community employment credit. See  
  Form 8844.
• Credit for alcohol used as fuel. See Form 6478.
• Renewable electricity, refined coal, and Indian coal production credit for electricity and refined coal produced at facilities placed in service after October 22, 2004, and Indian coal produced at facilities placed in service after August 8, 2005. See Form 8835, Section B.
• Work opportunity credit. See Form 5884.
• Credit for employer social security and Medicare taxes paid on certain employee tips. See Form 8846.
• New York Liberty Zone business employee credit. If you have a carryforward of this credit, see Form 5884.
• Qualified zone academy bond credit. This credit applies only to S corporation shareholders. See Form 8860.
• Clean renewable energy bond credit. See Form 8912.
• Credit for Gulf tax credit bonds. See Form 8912.
• Alternative motor vehicle credit. If you placed an alternative motor vehicle (such as a qualified hybrid vehicle) in service during 2007, see Form 8910.
• Alternative fuel vehicle refueling property credit. See Form 8911.

Previous Page:  Instructions for Form 1040 - Adjusted Gross Income Next Page:  Instructions for Form 1040 - Other Taxes Use   to find additional occurrences of topic items.