Tax Guide: Your Federal Income Tax

Publication 17
Your Federal Catalog Number 10311G
Income Tax For use in preparing

Department
of the For Individuals 2023 Returns
Treasury
Internal
Revenue
Service
TAX GUIDE
2023
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Jan 19, 2024

Your Federal
Department
Income Tax
of the
Treasury
For Individuals
Internal
Revenue Contents
Service
What's New ....................... 1 11 Taxes . . . . . . . . . . . . . . . . . . . . . . 97
12 Other Itemized Deductions . . . . . . . . . 101
Reminders . . . . . . . . . . . . . . . . . . . . . . . . 2
Part Four. Figuring Your Taxes, and
Introduction . . . . . . . . . . . . . . . . . . . . . . . 3 Refundable and Nonrefundable Credits . . 107
13 How To Figure Your Tax . . . . . . . . . . . 107
Part One. The Income Tax Return . . . . . . . . . . 6 14 Child Tax Credit and Credit for Other
1 Filing Information . . . . . . . . . . . . . . . . 6 Dependents . . . . . . . . . . . . . . . . . 109
2 Filing Status . . . . . . . . . . . . . . . . . . . 21
3 Dependents . . . . . . . . . . . . . . . . . . . 26 2023 Tax Table . . . . . . . . . . . . . . . . . . . . . 112
4 Tax Withholding and Estimated Tax . . . . . 37
2023 Tax Computation Worksheet . . . . . . . . 124
Part Two. Income and Adjustments
to Income . . . . . . . . . . . . . . . . . . . . . 46 2023 Tax Rate Schedules . . . . . . . . . . . . . . 124
5 Wages, Salaries, and Other Earnings . . . . 47
6 Interest Income . . . . . . . . . . . . . . . . . 54 Your Rights as a Taxpayer . . . . . . . . . . . . . 126
7 Social Security and Equivalent Railroad
How To Get Tax Help . . . . . . . . . . . . . . . . . 127
Retirement Benefits . . . . . . . . . . . . . . 62
8 Other Income . . . . . . . . . . . . . . . . . . 67 Index . . . . . . . . . . . . . . . . . . . . . . . . . . 130
9 Individual Retirement Arrangements
(IRAs) . . . . . . . . . . . . . . . . . . . . . 78 Where To File . . . . . . . . . . . . . . . . . . . . . 140
Part Three. Standard Deduction, Itemized
Deductions, and Other Deductions . . . . . . 93
10 Standard Deduction . . . . . . . . . . . . . . 93
All material in this The explanations and examples in this publication This publication covers some subjects on which a
publication may be reflect the interpretation by the Internal Revenue Service court may have made a decision more favorable to
reprinted freely. A (IRS) of: taxpayers than the interpretation by the IRS. Until these
citation to Your Federal • Tax laws enacted by Congress, differing interpretations are resolved by higher court
Income Tax (2023) decisions or in some other way, this publication will
would be appropriate. • Treasury regulations, and continue to present the interpretations by the IRS.
• Court decisions. All taxpayers have important rights when working with
the IRS. These rights are described in Your Rights as a
However, the information given does not cover every
Taxpayer in the back of this publication.
situation and is not intended to replace the law or change
its meaning.
What's New
This section summarizes important • Line 6m will be used to report Exception to the 10% additional Certain corrective distributions
tax changes that took effect in the credit for previously tax for early distributions. The not subject to 10% early distri-
2023. Most of these changes are owned clean vehicles from exception to the 10% additional tax bution tax. Beginning with distri-
discussed in more detail Form 8936. for early distributions include the butions made on December 29,
throughout this publication. following. 2022, and after, the 10% additional
• Line 13c will be used to report
Future developments. For the tax on early distributions will not
the elective payment election • Distributions from a retirement
latest information about the tax law amount from Form 3800. apply to the income attributed to a
plan in connection with feder-
topics covered in this publication, corrective IRA distribution, as long
ally declared disasters.
such as legislation enacted after it Credits for qualified sick and as the corrective distribution is
was published, go to IRS.gov/ family leave wages. The credits • Distribution from a retirement made on or before the due date (in-
Pub17. for qualified sick and family leave plan made to someone who is cluding extensions) of the income
wages paid in 2023 for leave taken terminally ill. tax return.
Due date of return. File Form
1040 or 1040-SR by April 15, 2024. before April 1, 2021, and for leave • Distributions to firefighters at Delayed refund for returns
If you live in Maine or Massachu- taken after March 31, 2021, and age 50 or with 25 years of claiming the additional child tax
setts, you have until April 17, 2024, before October 1, 2021, are now service under the plan. credit (ACTC). The IRS cannot is-
because of the Patriots’ Day and reported on Schedule 3, line 13z. sue refunds before mid-February
See Schedule H (Form 1040) for See Form 5329 and Pub. 590-B
Emancipation Day holidays. See 2024 for returns that properly claim
more information. for more information.
chapter 1, later. ACTC. This time frame applies to
Additonal child tax credit Alternative motor vehicle credit. Direct File. The IRS is taking the entire refund, not just the por-
amount increased. The maxi- The alternative motor vehicle credit steps to implement a Direct File pi- tion associated with ACTC.
mum additional child tax credit has expired. lot during the 2024 filing season. Standard mileage rate. The
amount has increased to $1,600 This pilot will give eligible taxpay- 2023 rate for business use of a ve-
Self-employed health insurance ers an option to prepare and elec- hicle is 65.5 cents a mile. The 2023
for each qualifying child.
deduction. Use Form 7206 and tronically file their 2023 federal tax rate for use of your vehicle to do
New clean vehicle credit. The its instructions to determine any
credit for new qualified plug-in returns directly with the IRS for volunteer work for certain charita-
amount of the self-employed health free. The Direct File pilot will be of- ble organizations is 14 cents a
electric drive motor vehicles has insurance deduction you may be
changed. This credit is now known fered to eligible taxpayers in partic- mile. The 2023 rate for operating
able to claim and report on Sched- ipating states who have relatively expenses for a car when you use it
as the clean vehicle credit. The ule 1 (Form 1040), line 17.
maximum amount of the credit and simple tax returns reporting only for medical reasons is 22 cents a
some of the requirements to claim Qualified charitable distribution certain types of income and claim- mile.
the credit have changed. The credit one-time election. Beginning in ing limited credits and deductions. Modified adjusted gross income
is still reported on Form 8936 and 2023, you can elect to make a See IRS.gov/DirectFile for pilot in- (AGI) limit for traditional IRA
Schedule 3 (Form 1040), line 6f. one-time distribution up to $50,000 formation and updates. contributions. For 2023, if you
For more information, see Form from an individual retirement ac- Health flexible spending ar- are covered by a retirement plan at
8936. count to charities through a charita- rangements (health FSAs) un- work, your deduction for contribu-
Previously owned clean vehicle ble remainder unitrust, or a charita- der cafeteria plans. For tax years tions to a traditional IRA is reduced
credit. This credit is available for ble gift annuity funded only by beginning in 2023, the dollar limita- (phased out) if your modified AGI
previously owned clean vehicles qualified distributions. See Pub. tion under section 1251(i) on volun- is:
acquired and placed in service af- 590-B for more information. tary employee salary reductions for • More than $116,000 but less
ter 2022. For more information, see Increase in required minimum contributions to health FSAs is than $136,000 for a married
Form 8936. distribution age. If you reach age $3,050. couple filing a joint return or a
Who must file. Generally, the 72 in 2023, the required beginning qualifying surviving spouse,
Temporary allowance of 100%
amount of income you can receive date for your first required mini- business meal deduction has • More than $73,000 but less
before you must file a return has mum distribution is April 1, 2025. expired. Section 210 of the Tax- than $83,000 for a single indi-
been increased. For more informa- See Pub. 590–B for more informa- payer Certainty and Disaster Tax vidual or head of household,
tion, see chapter 1, later. tion. Relief Act of 2020 provided for the or
Standard deduction amount in- temporary allowance of a 100%
creased. For 2023, the standard
IRA contribution limit increased. • Less than $10,000 for a mar-
Beginning in 2023, the IRA contri- business meal deduction for food ried individual filing a separate
deduction amount has been in- or beverages provided by a restau-
bution limit is increased to $6,500 return.
creased for all filers. The amounts rant and paid or incurred after De-
($7,500 for individuals age 50 or
are: cember 31, 2020, and before Janu- If you either live with your spouse
older) from $6,000 ($7,000 for indi-
or file a joint return, and your
• Single or Married filing sepa- viduals age 50 or older). ary 1, 2023.
rately—$13,850; spouse is covered by a retirement
Deferred compensation contri- Disaster tax relief. The special plan at work but you aren't, your
• Married filing jointly or Qualify- bution limit increased. If you rules that provide for tax-favored deduction is phased out if your
ing surviving participate in a 401(k) plan, 403(b) withdrawals and repayments now modified AGI is more than
spouse—$27,700; and plan, or the federal government’s apply to disasters that occur on or $218,000 but less than $228,000. If
Thrift Savings Plan, the total an- after January 26, 2021. See Disas- your modified AGI is $228,000 or
• Head of household—$20,800.
nual amount you can contribute is ter-Related Relief in Pub. 590-B for more, you can't take a deduction
See chapter 10, later. increased to $22,500 ($30,000 if more information. for contributions to a traditional
New lines on Schedule 3 (Form age 50 or older) for 2023. This also IRA. See How Much Can You De-
Distributions to terminally ill in-
1040). This year Schedule 3 applies to most 457 plans. duct in chapter 9, later.
dividuals. The exception to the
(Form 1040) has new lines. Modified AGI limit for Roth IRA
Insurance premiums for retired 10% additional tax for early distri-
• Line 5a will be used to report public safety officers. Eligible re- butions is expanded to apply to contributions. For 2023, your
the residential clean energy tired public safety officers can ex- distributions made after December Roth IRA contribution limit is re-
credit from Form 5695. clude from income up to $3,000 of 29, 2022, to an individual who has duced (phased out) in the following
been certified by a physician as situations.
• Line 5b will be used to report distributions from their eligible re-
the energy efficient home im- tirement plan that is paid directly to having a terminal illness. See Pub. • Your filing status is married fil-
provement credit from Form them and is used to pay for health 590-B for more information. ing jointly or qualifying surviv-
5695. insurance premiums. ing spouse and your modified
Publication 17 (2023) 1
AGI is at least $218,000. You AGI is $10,000 or more. See surviving spouse; $63,250 if mar- other amounts reported on Form
can't make a Roth IRA contri- Can You Contribute to a Roth ried filing separately). The income 1099-K are additional pieces of in-
bution if your modified AGI is IRA in chapter 9, later. levels at which the AMT exemption formation to help determine the
$228,000 or more. begins to phase out have incorrect amounts to report on your
2024 modified AGI limits. You creased to $578,150 ($1,156,300 if return.
• Your filing status is single, can find information about the 2024 married filing jointly or qualifying If you received a Form 1099-K
head of household, or married contribution and modified AGI lim- surviving spouse). that shows payments you didn’t re-
filing separately and you didn't its in Pub. 590-A.
live with your spouse at any ceive or is otherwise incorrect,
Reporting requirements for
time in 2023 and your modi- Tax law changes for 2024. When contact the Form 1099-K issuer.
Form 1099-K. Form 1099-K is is-
fied AGI is at least $138,000. you figure how much income tax Don’t contact the IRS; the IRS can’t
sued by third party settlement or-
You can't make a Roth IRA you want withheld from your pay correct an incorrect Form 1099-K.
ganizations and credit card compa-
contribution if your modified and when you figure your estima- If you can’t get it corrected, or you
nies to report payment transactions
AGI is $153,000 or more. ted tax, consider tax law changes sold a personal item at a loss, see
made to you for goods and serv-
effective in 2024. For more infor- the instructions for Schedule 1,
• Your filing status is married fil- ices.
mation, see Pub. 505. lines 8z and 24z, later, for more re-
ing separately, you lived with You must report all income on porting information.
your spouse at any time dur- Alternative minimum tax (AMT) your tax return unless excluded by
All IRS information about Form
ing the year, and your modi- exemption amount increased. law, whether you received the in-
1099-K is available by going to
fied AGI is more than zero. The AMT exemption amount is income electronically or not, and
IRS.gov/1099K.
You can't make a Roth IRA creased to $81,300 ($126,500 if whether you received a Form
contribution if your modified married filing jointly or qualifying 1099-K or not. The box 1a and
Reminders
Listed below are important theft and how to reduce your risk changes to the CTC for 2021 im- Premium tax credit (PTC). The
reminders and other items that may from it, see chapter 1, later. plemented by the American Res- ARP expanded the PTC by elimi-
help you file your 2023 tax return. Taxpayer identification num- cue Plan Act of (the ARP) 2021 nating the limitation that a taxpay-
Many of these items are explained bers. You must provide the tax- have expired. For tax year 2023, er's household income may not ex-
in more detail later in this payer identification number for the follow apply. ceed 400% of the federal poverty
publication. each person for whom you claim line and generally increases the
• The enhanced credit allowed
Publication 17 changes. We re- certain tax benefits. This applies credit amounts. For more informa-
for qualifying children under
moved the following 2019 chapters even if the person was born in tion, see Pub. 974 and Form 8962
age 6 and children under age
from this publication: 6, 8, 9, 10, 2023. Generally, this number is the and its instructions.
18 has expired. For 2023, the
13, 14, 15, 16, 18, 19, 20, 22, 24, person's SSN. See chapter 1, later. initial amount of the CTC is Credits for sick and family leave
25, 26, 29, 30, 31, 33, 34, 35, and Filing status name changed to $2,000 for each qualifying for certain self-employed indi-
36. You can find most of the infor- qualifying surviving spouse. child. The credit amount be- viduals are not available. The
mation previously found in those The filing status qualifying gins to phase out where modi- credits for sick and family leave for
chapters in the primary publication. widow(er) is now called qualifying fied AGI income exceeds certain self-employed individuals
Please see Publication 17 surviving spouse. The rules for the $200,000 ($400,000 in the were not extended and you can no
Changes, later. filing status have not changed. The case of a joint return). The longer claim these credits.
Special rules for eligible gains same rules that applied for qualify- amount of the CTC that can Identity verification. The IRS
invested in Qualified Opportu- ing widow(er) apply to qualifying be claimed as a refundable launched an improved identity veri-
nity Funds. If you have an eligible surviving spouse. credit is limited as it was in fication and sign-in process that
gain, you can invest that gain into a New lines 1a through 1z on 2020 except that the maxi- enables more people to securely
Qualified Opportunity Fund (QOF) Forms 1040 and 1040-SR. This mum ACTC amount for each access and use IRS online tools
and elect to defer part or all of the year, line 1 is expanded and there qualifying child increased to and applications. To provide verifi-
gain that is otherwise includible in are new lines 1a through 1z. Some $1,500. cation services, the IRS is using
income. The gain is deferred until amounts that in prior years were re- • The increased age allowance ID.me, a trusted technology pro-
the date you sell or exchange the ported on Form 1040, and some for a qualifying child has ex- vider. The new process is one
investment or December 31, 2026, amounts reported on Form pired. A child must be under more step the IRS is taking to en-
whichever is earlier. You may also 1040-SR, are now reported on age 17 at the end of 2023 to sure that taxpayer information is
be able to permanently exclude Schedule 1. be a qualifying child. provided only to the person who le-
gain from the sale or exchange of • Scholarships and fellowship gally has a right to the data. Tax-
For more information, see the In-
an investment in a QOF if the in- grants are now reported on payers using the new mo-
structions for Schedule 8812 (Form
vestment is held for at least 10 Schedule 1, line 8r. bile-friendly verification procedure
1040).
years. For information about what can gain entry to existing IRS on-
types of gains entitle you to elect • Pension or annuity from a Changes to the earned income line services such as the Child Tax
these special rules, see the In- nonqualified deferred com- Credit Update Portal, Online Ac-
credit (EIC). The enhancements
structions for Schedule D (Form pensation plan or a non-gov- count, Get Transcript Online, Get
for taxpayers without a qualifying
1040). For information on how to ernmental section 457 plan an Identity Protection PIN (IP PIN),
child implemented by the ARP
elect to use these special rules, are now reported on Schedule and Online Payment Agreement.
don't apply for 2023. This means,
see the Instructions for Form 8949. 1, line 8t. Additional IRS applications will
to claim the EIC without a qualify-
Secure your tax records from • Wages earned while incarcer- ing child in 2023, you must be at transition to the new method over
identity theft. Identity theft occurs ated are now reported on least age 25 but under age 65 at the next year. Each online service
when someone uses your personal Schedule 1, line 8u. the end of 2023. If you are married will also provide information that
information, such as your name, New line 6c on Forms 1040 and filing a joint return, either you or will instruct taxpayers on the steps
SSN, or other identifying informa- 1040-SR. A checkbox was added your spouse must be at least age they need to follow for access to
tion, without your permission, to on line 6c. Taxpayers who elect to 25 but under age 65 at the end of the service. You can also see
commit fraud or other crimes. An use the lump-sum election method 2023. It doesn't matter which IR-2021-228 for more information.
identity thief may use your SSN to for their benefits will check this box. spouse meets the age require- Adoption credit. The adoption
get a job or may file a tax return us- See Instructions for Form 1040. ment, as long as one of the spou- credit and the exclusion for em-
ing your SSN to receive a refund. Child tax credit (CTC) enhance- ses does. ployer-provided adoption benefits
For more information about identity ments have expired. Many are both $15,950 per eligible child
2 Publication 17 (2023)
in 2023. The amount begins to 8938 and its instructions or go to that are identified as frivolous. The do not receive it, and whether your
phase out if you have modified AGI IRS.gov/Form8938 for details. penalty for filing a frivolous tax re- response is voluntary, required to
in excess of $239,230 and is com- turn is $5,000. See chapter 1, later. obtain a benefit, or mandatory un-
Automatic 6-month extension to
pletely phased out if your modified der the law. A complete statement
file tax return. You can get an au- Filing erroneous claim for re-
AGI is $279,230 or more. on this subject can be found in your
tomatic 6-month extension of time fund or credit. You may have to
tax form instructions.
ACTC and bona fide residents to file your tax return. See chap- pay a penalty if you file an errone-
of Puerto Rico. Bona fide resi- ter 1, later. ous claim for refund or credit. See Preparer e-file mandate. Most
dents of Puerto Rico are no longer Payment of taxes. You can pay chapter 1, later. paid preparers must e-file returns
required to have three or more your taxes by making electronic they prepare and file. Your preparer
Access your online account.
qualifying children to be eligible to payments online; from a mobile de- may make you aware of this re-
You must authenticate your identity.
claim the ACTC. Bona fide resi- vice using the IRS2Go app; or in quirement and the options availa-
To securely log into your federal tax
dents of Puerto Rico may be eligi- cash, or by check or money order. ble to you.
account, go to IRS.gov/Account.
ble to claim the ACTC if they have Paying electronically is quick, easy, View the amount you owe, review Treasury Inspector General for
one or more qualifying children. and faster than mailing in a check your last 5 years of payment his- Tax Administration. If you want
Foreign-source income. If you or money order. See chapter 1, tory, access online payment op- to confidentially report misconduct,
are a U.S. citizen with income from later. tions, and create or modify an on- waste, fraud, or abuse by an IRS
sources outside the United States Faster ways to file your return. line payment agreement. You can employee, you can call
(foreign income), you must report The IRS offers fast, accurate ways also access your tax records on- 800-366-4484 (call 800-877-8339
all such income on your tax return to file your tax return information line. if you are deaf, hard of hearing, or
unless it is exempt by law or a tax without filing a paper tax return. have a speech disability, and are
Health care coverage. If you
treaty. This is true whether you live You can use IRS e-file (electronic using TTY/TDD equipment). You
need health care coverage, go to
inside or outside the United States filing). See chapter 1, later. can remain anonymous.
HealthCare.gov to learn about
and whether or not you receive a health insurance options for you Photographs of missing chil-
Free electronic filing. You may
Form W-2 or Form 1099 from the and your family, how to buy health dren. The IRS is a proud partner
be able to file your 2023 taxes on-
foreign payer. This applies to insurance, and how you might with the National Center for
line for free. See chapter 1, later.
earned income (such as wages qualify to get financial assistance Missing & Exploited Children®
and tips) as well as unearned in- Change of address. If you to buy health insurance. (NCMEC). Photographs of missing
come (such as interest, dividends, change your address, notify the children selected by the Center
capital gains, pensions, rents, and IRS. See chapter 1, later. Disclosure, Privacy Act, and pa-
may appear in this publication on
royalties). perwork reduction information.
Refund on a late-filed return. If pages that would otherwise be
If you live outside the United The IRS Restructuring and Reform
you were due a refund but you did blank. You can help bring these
States, you may be able to exclude Act of 1998, the Privacy Act of
not file a return, you must generally children home by looking at the
part or all of your foreign earned in- 1974, and the Paperwork Reduc-
file your return within 3 years from photographs and calling
come. For details, see Pub. 54. tion Act of 1980 require that when
the date the return was due (includ- 1-800-THE-LOST
we ask you for information, we
ing extensions) to get that refund. (1-800-843-5678) if you recognize
Foreign financial assets. If you must first tell you what our legal
See chapter 1, later. a child.
had foreign financial assets in right is to ask for the information,
2023, you may have to file Form Frivolous tax returns. The IRS why we are asking for it, how it will
8938 with your return. See Form has published a list of positions be used, what could happen if we
Introduction
This publication covers the general What is in this publication. This publications are provided for your • Pub. 587, Business Use of
rules for filing a federal income tax publication begins with the rules for information. Your Home.
return. It supplements the informa- filing a tax return. It explains:
Help from the IRS. There are
tion contained in your tax form in- Icons. Small graphic symbols,
1. Who must file a return, many ways you can get help from
structions. It explains the tax law to or icons, are used to draw your at-
the IRS. These are explained un-
make sure you pay only the tax you 2. When the return is due, tention to special information. See
der How To Get Tax Help at the
owe and no more. Table 1 for an explanation of each
3. How to e-file your return, and end of this publication.
icon used in this publication.
How this publication is ar-
4. Other general information. Comments and suggestions.
ranged. Pub. 17 closely follows What is not covered in this pub-
We welcome your comments about
Form 1040, U.S. Individual Income It will help you identify which filing lication. Some material that you
this publication and suggestions for
Tax Return, and Form 1040-SR, status you qualify for, whether you may find helpful is not included in
future editions.
U.S. Tax Return for Seniors, and can claim any dependents, and this publication but can be found in
their three Schedules 1 through 3. your tax form instructions booklet. You can send us comments
whether the income you receive is
Pub. 17 is divided into four parts. This includes lists of: through IRS.gov/FormComments.
taxable. The publication goes on to
Each part is further divided into Or, you can write to the Internal
explain the standard deduction, the • Where to report certain items
chapters, most of which generally Revenue Service, Tax Forms and
kinds of expenses you may be able shown on information docu-
discuss one line of the form or one Publications, 1111 Constitution
to deduct, and the various kinds of ments, and
line of one of the three schedules. Ave. NW, IR-6526, Washington,
credits you may be able to take to
The introduction at the beginning • Tax Topics you can read at DC 20224.
reduce your tax.
of each part lists the schedule(s) IRS.gov/TaxTopics. Although we can’t respond indi-
Throughout this publication are
discussed in that part. vidually to each comment received,
examples showing how the tax law If you operate your own busi-
The table of contents inside the we do appreciate your feedback
applies in typical situations. Also ness or have other self-employ-
front cover, the introduction to each and will consider your comments
throughout this publication are ment income, such as from baby-
part, and the index in the back of and suggestions as we revise our
flowcharts and tables that present sitting or selling crafts, see the
the publication are useful tools to tax forms, instructions, and publi-
tax information in an easy-to-un- following publications for more in-
help you find the information you cations. Don’t send tax questions,
derstand manner. formation.
need. tax returns, or payments to the
Many of the subjects discussed • Pub. 334, Tax Guide for Small above address.
in this publication are discussed in Business.
greater detail in other IRS publica- Getting answers to your tax
tions. References to those other • Pub. 225, Farmer's Tax Guide. questions. If you have a tax
question not answered by this pub- Getting tax forms, instruc- IRS.gov/OrderForms to order cur- forms and publications faster on-
lication or the How To Get Tax Help tions, and publications. Go to rent forms, instructions, and publi- line.
section at the end of this publica- IRS.gov/Forms to download cur- cations; call 800-829-3676 to order
IRS mission. Provide America's
tion, go to the IRS Interactive Tax rent and prior-year forms, instruc- prior-year forms and instructions.
taxpayers top-quality service by
Assistant page at IRS.gov/Help/ITA tions, and publications. The IRS will process your order for
helping them understand and meet
where you can find topics by using forms and publications as soon as
Ordering tax forms, instruc- their tax responsibilities and en-
the search feature or viewing the possible. Don’t resubmit requests
tions, and publications. Go to force the law with integrity and fair-
categories listed. you’ve already sent us. You can get
ness to all.
Publication 17 Changes
Note. This publication does not cover the topics listed in the following table. Please see the primary publication.
Chapter Removed Title of Chapter Primary Source
6 Tip Income Pub. 531, Reporting Tip Income
8 Dividends and Other Distributions Pub. 550, Investment Income and
Expenses
9 Rental Income and Expenses Pub. 527, Residential Rental Property
(Including Rental of Vacation Homes)
10 Retirement Plans, Pensions, and Annuities Pub. 575, Pension and Annuity Income
13 Basis of Property Pub. 551, Basis of Assets
14 Sale of Property Pub. 550
15 Selling Your Home Pub. 523, Selling Your Home
16 Reporting Gains and Losses Pub. 550
18 Alimony Pub. 504, Divorced or Separated
Individuals
19 Education-Related Adjustments Pub. 970, Tax Benefits for Education
20 Other Adjustments to Income Pub. 463, Travel, Gift, and Car Expenses
22 Medical and Dental Expenses Pub. 502, Medical and Dental Expenses
24 Interest Expense Pub. 550
Pub. 936, Home Mortgage Interest
Deduction
25 Charitable Contributions Pub. 561, Determining the Value of
Donated Property
Pub. 526, Charitable Contributions
26 Nonbusiness Casualty and Theft Losses Pub. 547, Casualties, Disasters, and Thefts
29 Tax on Unearned Income of Certain Minor Form 8615, Tax for Certain Children Who
Children Have Unearned Income
30 Child and Dependent Care Credit Pub. 503, Child and Dependent Care
Expenses
31 Credit for the Elderly or the Disabled Pub. 524, Credit for the Elderly or the
Disabled
33 Education Credits Pub. 970, Tax Benefits for Education
34 Earned Income Credit (EIC) Pub. 596, Earned Income Credit (EIC)
35 Premium Tax Credit Pub. 974, Premium Tax Credit (PTC)
36 Other Credits
Table 1. Legend of Icons
Icon Explanation
Items that may cause you particular problems, or an alert about pending legislation that may be enacted after
!
CAUTION
this publication goes to print.
An Internet site or an email address.
An address you may need.
Items you should keep in your personal records.

RECORDS
Items you may need to figure or a worksheet you may need to complete and keep for your records.
An important phone number.
TIP Helpful information you may need.
Part One.
The four chapters in this part provide basic information on the tax system.
The Income Tax They take you through the first steps of filling out a tax return. They also
provide information about dependents, and discuss recordkeeping
Return requirements, IRS e-file (electronic filing), certain penalties, and the two
methods used to pay tax during the year: withholding and estimated tax.
The Form 1040 and Form 1040-SR schedules that are discussed in these
chapters are:
• Schedule 1, Additional Income and Adjustments to Income; and
• Schedule 3 (Part II), Other Payments and Refundable Credits.
• See payment plan details or apply for a Service in combat zone. You are allowed ex-
new payment plan. tra time to take care of your tax matters if you
1. • Make a payment, view 5 years of payment
history and any pending or scheduled pay-
are a member of the Armed Forces who served
in a combat zone, or if you served in a combat
ments. zone in support of the Armed Forces. See Indi-
viduals Serving in Combat Zone, later, under
Filing • Access your tax records, including key
data from your most recent tax return, your
When Do I Have To File.
economic impact payment amounts, and Adoption taxpayer identification number. If

Information transcripts. a child has been placed in your home for purpo-
ses of legal adoption and you won't be able to
• View digital copies of select notices from get a social security number for the child in time
the IRS. to file your return, you may be able to get an
What's New • Approve or reject authorization requests adoption taxpayer identification number (ATIN).
For more information, see Social Security Num-
from tax professionals.
ber (SSN), later.
Due date of return. File Form 1040 or • View your address on file or manage your
1040-SR by April 15, 2024. If you live in Maine communication preferences. Taxpayer identification number for aliens. If
or Massachusetts, you have until April 17, 2024, you or your dependent is a nonresident or resi-
because of the Patriots’ Day and Emancipation
• Go to IRS.gov/SecureAccess to view the
required identity authentication process. dent alien who doesn't have and isn't eligible to
Day holidays. get a social security number, file Form W-7, Ap-
Change of address. If you change your ad- plication for IRS Individual Taxpayer Identifica-
New lines on Schedule 3. This year Schedule dress, you should notify the IRS. You can use tion Number, with the IRS. For more informa-
3 has new lines. Form 8822 to notify the IRS of the change. See tion, see Social Security Number (SSN), later.
• Line 5a will be used to report the residen- Change of Address, later, under What Happens
After I File. Individual taxpayer identification number
tial clean energy credit from Form 5695.
(ITIN) renewal. Some ITINs must be renewed.
• Line 5b will be used to report the energy Enter your social security number. You must If you haven't used your ITIN on a U.S. tax re-
efficient home improvement credit from enter your social security number (SSN) in the turn at least once for tax years 2020, 2021, or
Form 5695. spaces provided on your tax return. If you file a 2022, it has expired and must be renewed if you
joint return, enter the SSNs in the same order need to file a U.S. federal tax return. You don't
• Line 6m will be used to report the credit for as the names.
previously owned clean vehicles from Form need to renew your ITIN if you don't need to file
8936. Direct deposit of refund. Instead of getting a a federal tax return. You can find more informa-
paper check, you may be able to have your re- tion at IRS.gov/ITIN.
• Line 13c will be used to report the elective
payment election amount from Form 3800. fund deposited directly into your account at a ITINs assigned before 2013 have ex-
bank or other financial institution. See Direct TIP pired and must be renewed if you need
Who must file. Generally, the amount of in- Deposit under Refunds, later. If you choose di- to file a tax return. If you previously
come you can receive before you must file a re- rect deposit of your refund, you may be able to submitted a renewal application and it was ap-
turn has been increased. See Table 1-1, Ta- split the refund among two or three accounts. proved, you do not need to renew again unless
ble 1-2, and Table 1-3 for the specific amounts. you haven't used your ITIN on a federal tax re-
Pay online or by phone. If you owe additional
tax, you may be able to pay online or by phone. turn at least once for tax years 2020, 2021, or
Reminders See How To Pay, later. 2022.
Installment agreement. If you can’t pay the Frivolous tax submissions. The IRS has
File online. Rather than filing a return on pa- full amount due with your return, you may ask to published a list of positions that are identified as
per, you may be able to file electronically using make monthly installment payments. See In- frivolous. The penalty for filing a frivolous tax re-
IRS e-file. For more information, see Why stallment Agreement, later, under Amount You turn is $5,000. Also, the $5,000 penalty will ap-
Should I File Electronically, later. Owe. You may be able to apply online for a pay- ply to other specified frivolous submissions. For
ment agreement if you owe federal tax, interest, more information, see Civil Penalties, later.
Access your online account (individual tax- and penalties.
payers only). Go to IRS.gov/Account to se-
Automatic 6-month extension. You can get
curely access information about your federal tax
account. an automatic 6-month extension to file your tax Introduction
return if, no later than the date your return is
• View the amount you owe and a break- due, you file Form 4868. See Automatic This chapter discusses the following topics.
down by tax year. Extension, later. • Whether you have to file a return.
6 Chapter 1 Filing Information Publication 17 (2023)
• How to file electronically. Table 1-1. 2023 Filing Requirements for Most Taxpayers
• How to file for free.
• When, how, and where to file your return. THEN file a return if
AND at the end of 2023 you your gross income
• What happens if you pay too little or too IF your filing status is... were...* was at least...**
much tax.
Single under 65 $13,850
• What records you should keep and how
long you should keep them. 65 or older $15,700
• How you can change a return you have al- Married filing jointly*** under 65 (both spouses) $27,700
ready filed.
65 or older (one spouse) $29,200
Do I Have To 65 or older (both spouses) $30,700
File a Return? Married filing separately any age $5

Head of household under 65 $20,800
You must file a federal income tax return if you
are a citizen or resident of the United States or 65 or older $22,650
a resident of Puerto Rico and you meet the filing
Qualifying surviving spouse under 65 $27,700
requirements for any of the following categories
that apply to you. 65 or older $29,200
1. Individuals in general. (There are special
rules for individuals whose spouse has * If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse
died, executors, administrators, legal rep- died in 2023 or if you are preparing a return for someone who died in 2023, see Pub. 501.)
resentatives, U.S. citizens and residents ** Gross income means all income you received in the form of money, goods, property, and services that
living outside the United States, residents isn't exempt from tax, including any income from sources outside the United States or from the sale of
of Puerto Rico, and individuals with in- your main home (even if you can exclude part or all of it). Don't include any social security benefits unless
come from U.S. territories.) (a) you are married filing a separate return and you lived with your spouse at any time during 2023, or (b)
one-half of your social security benefits plus your other gross income and any tax-exempt interest is more
2. Dependents. than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the Instructions for Form 1040 or
3. Certain children under age 19 or full-time Pub. 915 to figure the taxable part of social security benefits you must include in gross income. Gross
income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a
students.
business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring
4. Self-employed persons. gross income, don't reduce your income by any losses, including any loss on Schedule C, line 7, or
Schedule F, line 9.
5. Aliens.
*** If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross
The filing requirements for each category are income was at least $5, you must file a return regardless of your age.
explained in this chapter.
(even if you can exclude all or part of it). Include Profit or Loss From Business; and line 9 of
The filing requirements apply even if you part of your social security benefits if: Schedule F (Form 1040), Profit or Loss From
don't owe tax. Farming. See Self-Employed Persons, later, for
1. You were married, filing a separate return,
Even if you don't have to file a return, it more information about your filing requirements.
and you lived with your spouse at any time
TIP may be to your advantage to do so. during 2023; or If you don't report all of your self-em-
See Who Should File, later. ployment income, your social security
2. Half of your social security benefits plus ! benefits may be lower when you retire.
your other gross income and any tax-ex-
CAUTION
File only one federal income tax return
for the year regardless of how many empt interest is more than $25,000
!
CAUTION jobs you had, how many Forms W-2 ($32,000 if married filing jointly).
Filing status. Your filing status depends on
whether you are single or married and on your
you received, or how many states you lived in family situation. Your filing status is determined
If either (1) or (2) applies, see the Instructions
during the year. Don't file more than one original on the last day of your tax year, which is De-
for Form 1040 or Pub. 915 to figure the social
return for the same year, even if you haven’t re- cember 31 for most taxpayers. See chapter 2
security benefits you must include in gross in-
ceived your refund or haven’t heard from the for an explanation of each filing status.
come.
IRS since you filed.
Common types of income are discussed in Age. If you are 65 or older at the end of the
Part Two of this publication. year, you can generally have a higher amount of
Individuals—In General Community property states. Community gross income than other taxpayers before you
property states include Arizona, California, must file. See Table 1-1. You are considered 65
If you are a U.S. citizen or resident, whether you Idaho, Louisiana, Nevada, New Mexico, Texas, on the day before your 65th birthday. For exam-
must file a return depends on three factors. Washington, and Wisconsin. If you and your ple, if your 65th birthday is on January 1, 2024,
spouse lived in a community property state, you you are considered 65 for 2023.
1. Your gross income.
must usually follow state law to determine what
2. Your filing status.
is community property and what is separate in- Surviving Spouses,
3. Your age. come. For details, see Form 8958 and Pub. Executors, Administrators,
555. and Legal Representatives
To find out whether you must file, see Ta-
ble 1-1, Table 1-2, and Table 1-3. Even if no ta- Nevada, Washington, and California do- You must file a final return for a decedent (a per-
ble shows that you must file, you may need to mestic partners. A registered domestic part- son who died) if both of the following are true.
file to get money back. See Who Should File, ner in Nevada, Washington, or California must
generally report half the combined community
• Your spouse died in 2023 or you are the
later.
executor, administrator, or legal represen-
income of the individual and their domestic
Gross income. This includes all income you tative.
partner. See Pub. 555.
receive in the form of money, goods, property, • The decedent met the filing requirements
and services that isn't exempt from tax. It also Self-employed individuals. If you are at the date of death.
includes income from sources outside the Uni- self-employed, your gross income includes the
ted States or from the sale of your main home amount on line 7 of Schedule C (Form 1040),
Publication 17 (2023) Chapter 1 Filing Information 7

For more information on rules for filing a de-
cedent's final return, see Pub. 559.
doesn't pay the tax due on this income, the pa-
rent is liable for the tax.
Aliens
Your status as an alien (resident, nonresident,
U.S. Citizens and Resident Aliens Certain Children Under or dual-status) determines whether and how
Living Abroad you must file an income tax return.
Age 19 or Full-Time The rules used to determine your alien sta-
To determine whether you must file a return, in-
clude in your gross income any income you re- Students tus are discussed in Pub. 519.
ceived abroad, including any income you can Resident alien. If you are a resident alien for
exclude under the foreign earned income exclu- If a child's only income is interest and dividends
the entire year, you must file a tax return follow-
sion. For information on special tax rules that (including capital gain distributions and Alaska
ing the same rules that apply to U.S. citizens.
may apply to you, see Pub. 54. It is available on- Permanent Fund dividends), the child was un-
Use the forms discussed in this publication.
line and at most U.S. embassies and consu- der age 19 at the end of 2023 or was a full-time
lates. See How To Get Tax Help in the back of student under age 24 at the end of 2023, and Nonresident alien. If you are a nonresident
this publication. certain other conditions are met, a parent can alien, the rules and tax forms that apply to you
elect to include the child's income on the pa- are different from those that apply to U.S. citi-
rent's return. If this election is made, the child zens and resident aliens. See Pub. 519 to find
Residents of Puerto Rico doesn't have to file a return. See Instructions for out if U.S. income tax laws apply to you and
If you are a U.S. citizen and also a bona fide Form 8814, Parents’ Election To Report Child’s which forms you should file.
resident of Puerto Rico, you must generally file Interest and Dividends.
Dual-status taxpayer. If you are a resident
a U.S. income tax return for any year in which
alien for part of the tax year and a nonresident
you meet the income requirements. This is in
addition to any legal requirement you may have
Self-Employed Persons alien for the rest of the year, you are a dual-sta-
tus taxpayer. Different rules apply for each part
to file an income tax return with Puerto Rico.
You are self-employed if you: of the year. For information on dual-status tax-
If you are a bona fide resident of Puerto Rico payers, see Pub. 519.
for the entire year, your U.S. gross income • Carry on a trade or business as a sole pro-
doesn't include income from sources within prietor,
Puerto Rico. It does, however, include any in- • Are an independent contractor, Who Should File
come you received for your services as an em-
ployee of the United States or a U.S. agency. If • Are a member of a partnership, or Even if you don't have to file, you should file a
you receive income from Puerto Rican sources • Are in business for yourself in any other federal income tax return to get money back if
that isn't subject to U.S. tax, you must reduce way. any of the following conditions apply.
your standard deduction. As a result, the
Self-employment can include work in addi- 1. You had federal income tax withheld or
amount of income you must have before you are
tion to your regular full-time business activities, made estimated tax payments.
required to file a U.S. income tax return is lower
such as certain part-time work you do at home
than the applicable amount in Table 1-1 or Ta- 2. You qualify for the earned income credit.
or in addition to your regular job.
ble 1-2. For more information, see Pub. 570. See Pub. 596 for more information.
You must file a return if your gross income is
at least as much as the filing requirement 3. You qualify for the additional child tax
Individuals With Income From amount for your filing status and age (shown in credit. See chapter 14 for more informa-
U.S. Territories Table 1-1). Also, you must file Form 1040 or tion.
If you had income from Guam, the Common- 1040-SR and Schedule SE (Form 1040),
4. You qualify for the premium tax credit. See
wealth of the Northern Mariana Islands, Ameri- Self-Employment Tax, if:
Pub. 974 for more information.
can Samoa, or the U.S. Virgin Islands, special 1. Your net earnings from self-employment
rules may apply when determining whether you 5. You qualify for the American opportunity
(excluding church employee income) were
must file a U.S. federal income tax return. In ad- credit. See Pub. 970 for more information.
$400 or more, or
dition, you may have to file a return with the indi- 6. You qualify for the credit for federal tax on
vidual island government. See Pub. 570 for 2. You had church employee income of
fuels. See chapter 13 for more information.
more information. $108.28 or more. (See Table 1-3.)
Dependents
Use Schedule SE (Form 1040) to figure your
self-employment tax. Self-employment tax is Form 1040 or 1040-SR
comparable to the social security and Medicare
Use Form 1040 or 1040-SR to file your return.
If you are a dependent (one who meets the de- tax withheld from an employee's wages. For
(But also see Why Should I File Electronically,
pendency tests in chapter 3), see Table 1-2 to more information about this tax, see Pub. 334.
later.)
find out whether you must file a return. You must
Employees of foreign governments or in-
also file if your situation is described in Ta- You can use Form 1040 or 1040-SR to re-
ternational organizations. If you are a U.S.
ble 1-3. port all types of income, deductions, and cred-
citizen who works in the United States for an in-
Responsibility of parent. Generally, a child is ternational organization, a foreign government, its.
responsible for filing their own tax return and for or a wholly owned instrumentality of a foreign
paying any tax on the return. If a dependent
child must file an income tax return but can’t file
government, and your employer isn't required to
withhold social security and Medicare taxes
Why Should I File
due to age or any other reason, then a parent, from your wages, you must include your earn- Electronically?
guardian, or other legally responsible person ings from services performed in the United
must file it for the child. If the child can’t sign the States when figuring your net earnings from
return, the parent or guardian must sign the self-employment. Electronic Filing
child's name followed by the words “By (your
signature), parent for minor child.” Ministers. You must include income from If your adjusted gross income (AGI) is less than
services you performed as a minister when fig- a certain amount, you are eligible for Free File,
Child's earnings. Amounts a child earns by uring your net earnings from self-employment, a free tax software service offered by IRS part-
performing services are included in the child’s unless you have an exemption from self-em- ners, to prepare and e-file your return for free. If
gross income and not the gross income of the ployment tax. This also applies to Christian Sci- your income is over the amount, you are still eli-
parent. This is true even if under local law the ence practitioners and members of a religious gible for Free File Fillable Forms, an electronic
child's parent has the right to the earnings and order who have not taken a vow of poverty. For version of IRS paper forms. Table 1-4 lists the
may actually have received them. But if the child more information, see Pub. 517. free ways to electronically file your return.

Table 1-2. 2023 Filing Requirements for Dependents each need to create a PIN and enter these PINs
as your electronic signatures.
See chapter 3 to find out if someone can claim you as a dependent. A PIN is any combination of five digits you
choose except five zeros. If you use a PIN, there
If your parents (or someone else) can claim you as a dependent, use this table to see if you
is nothing to sign and nothing to mail—not even
must file a return. (See Table 1-3 for other situations when you must file.) your Forms W-2.
In this table, unearned income includes taxable interest, ordinary dividends, and capital gain Your electronic return is considered a valid
distributions. It also includes unemployment compensation, taxable social security benefits, signed return only when it includes your PIN;
pensions, annuities, and distributions of unearned income from a trust. Earned income includes last name; date of birth; IP PIN, if applicable;
salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. (See and AGI from your originally filed 2022 federal
Scholarships and fellowships in chapter 8.) Gross income is the total of your earned and income tax return, if applicable. If you're filing
unearned income. jointly, your electronic return must also include
your spouse's PIN; last name; date of birth; IP
Single dependents—Were you either age 65 or older or blind?
PIN, if applicable; and AGI, if applicable, in or-
No. You must file a return if any of the following apply. der to be considered validly signed. Don't use
• Your unearned income was more than $1,250. AGI from an amended return (Form 1040-X) or
a math error correction made by the IRS. AGI is
• Your earned income was more than $13,850.
the amount shown on your 2022 Form 1040 or
• Your gross income was more than the larger of: Form 1040-SR, line 11. If you don't have your
• $1,250 or 2022 income tax return, you can request a tran-
• Your earned income (up to $13,450) plus $400. script by using our automated self-service tool.
Go to IRS.gov/Transcript. (If you filed electroni-
Yes. You must file a return if any of the following apply. cally last year, you, and your spouse if filing
• Your unearned income was more than $3,100 ($4,950 if 65 or older and blind). jointly, may use your prior year PIN to verify your
• Your earned income was more than $15,700 ($17,550 if 65 or older and blind). identity instead of your prior year AGI. The prior
• Your gross income was more than the larger of: year PIN is the five-digit PIN you used to elec-
tronically sign your 2022 return.) You will also be
• $3,100 ($4,950 if 65 or older and blind), or
prompted to enter your date of birth.
• Your earned income (up to $13,450) plus $2,250 ($4,100 if 65 or older and
blind). You can’t use the Self-Select PIN
! method if you are a first-time filer under
Married dependents—Were you either age 65 or older or blind? CAUTION age 16 at the end of 2023.
No. You must file a return if any of the following apply.
Practitioner PIN. The Practitioner PIN method
• Your unearned income was more than $1,250. allows you to authorize your tax practitioner to
• Your earned income was more than $13,850. enter or generate your PIN. Your electronic re-
• Your gross income was at least $5 and your spouse files a separate return and turn is considered a validly signed return only
itemizes deductions. when it includes your PIN; last name; date of
• Your gross income was more than the larger of: birth; and IP PIN, if applicable. If you’re filing
jointly, your electronic return must also include
• $1,250, or
your spouse’s PIN; last name; date of birth; and
• Your earned income (up to $13,450) plus $400. IP PIN, if applicable, in order to be considered a
Yes. You must file a return if any of the following apply. validly signed return. The practitioner can pro-
vide you with details.
• Your unearned income was more than $2,750 ($4,250 if 65 or older and blind).
• Your earned income was more than $15,350 ($16,850 if 65 or older and blind). Form 8453. You must send in a paper Form
• Your gross income was at least $5 and your spouse files a separate return and 8453 if you have to attach certain forms or other
itemizes deductions. documents that can’t be electronically filed. For
details, see Form 8453. For more details, visit
• Your gross income was more than the larger of: IRS.gov/efile.
• $2,750 ($4,250 if 65 or older and blind), or
Identity Protection PIN. If the IRS gave you
• Your earned income (up to $13,450) plus $1,900 ($3,400 if 65 or older and
an identity protection personal identification
blind).
number (IP PIN), enter it in the spaces provided
on your tax form. If the IRS hasn’t given you this
IRS e-file uses automa- return electronically using a personal identifica-
type of number, leave these spaces blank. For
tion to replace most of the tion number (PIN). If you are filing online, you
more information, see the Instructions for Form
manual steps needed to process paper returns. must use a Self-Select PIN. For 2023, if we is-
1040.
As a result, the processing of e-file returns is sued you an identity protection personal identifi-
faster and more accurate than the processing of cation number (IP PIN) (as described in more All taxpayers are now eligible for an IP
paper returns. However, as with a paper return, detail below), all six digits of your IP PIN must TIP PIN. For more information, see Pub.
you are responsible for making sure your return appear in the IP PIN spaces provided next to 5477. To apply for an IP PIN, go to
contains accurate information and is filed on the space for your occupation for your elec- IRS.gov/IPPIN and use the Get an IP PIN tool.
time. tronic signature to be complete. Failure to in-
clude an issued IP PIN on the electronic return Power of attorney. If an agent is signing your
If your return is filed with IRS e-file, you will re- will result in an invalid signature and a rejected return for you, a power of attorney (POA) must
ceive an acknowledgment that your return was return. If you are filing a joint return and both be filed. Attach the POA to Form 8453 and file it
received and accepted. If you owe tax, you can taxpayers were issued an IP PIN, enter both IP using that form's instructions. See Signatures,
e-file and pay electronically. The IRS has pro- PINs in the spaces provided. If you are filing later, for more information on POAs.
cessed more than one billion e-filed returns electronically using a tax practitioner, you can
State returns. In most states, you can file an
safely and securely. Using e-file doesn't affect use a Self-Select PIN or a Practitioner PIN.
electronic state return simultaneously with your
your chances of an IRS examination of your re- Self-Select PIN. The Self-Select PIN method federal return. For more information, check with
turn. allows you to create your own PIN. If you are your local IRS office, state tax agency, tax pro-
Requirements for an electronic return. To married filing jointly, you and your spouse will fessional, or the IRS website at IRS.gov/efile.
file your return electronically, you must sign the

Table 1-3. Other Situations When You Must File a 2023 Return
You must file a return if any of the following apply for 2023.
1. You owe any special taxes, including any of the following (see the instructions for Schedule 2 (Form 1040)).
a. Alternative minimum tax.
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.
c. Household employment taxes.
d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who
didn't withhold these taxes.
e. Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance
and additional taxes on health savings accounts.
f. Recapture taxes.
2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.
3. You had net earnings from self-employment of at least $400.
4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer
social security and Medicare taxes.
5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage
through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the
advance payments.
6. You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you are
paying in installments under section 965(h) or deferred by making an election under section 965(i).
Refunds. You can have a refund check mailed Table 1-4. Free Ways To e-file
to you, or you can have your refund deposited
directly to your checking or savings account or Use Free File for free tax software and free e-file.
split among two or three accounts. With e-file,
your refund will be issued faster than if you filed • IRS partners offer name-brand products for free.
on paper. • Many taxpayers are eligible for Free File software.
You may not get all of your refund if you owe
certain past-due amounts, such as federal tax, • Everyone is eligible for Free File Fillable Forms, an electronic version of IRS paper forms.
state income tax, state unemployment compen- • Free File software and Free File Fillable Forms are available only at IRS.gov/FreeFile.
sation debts, child support, spousal support, or
certain other federal nontax debts, such as stu- Use VITA/TCE for free tax help from volunteers and free e-file.
dent loans. See Offset against debts under Re- • Volunteers prepare your return and e-file it for free.
funds, later.
• Some sites also offer do-it-yourself software.
Refund inquiries. Information about your re-
turn will generally be available within 24 hours • You are eligible based either on your income or age.
after the IRS receives your e-filed return. See • Sites are located nationwide. Find one near you by visiting IRS.gov/VITA.
Refund Information, later.
Amount you owe. To avoid late-payment pen-
alties and interest, pay your taxes in full by April for a fee. Ask your employer or financial institu- prepare and e-file your federal tax return
15, 2024 (for most people). See How To Pay, tion if they offer IRS e-file as an employee, for free.
member, or customer benefit.
later, for information on how to pay the amount • VITA. Go to IRS.gov/VITA, download the
you owe. free IRS2Go app, or call 800-906-9887 to
Free Help With Your Return find the nearest VITA location for free tax
Using Your Personal Computer The Volunteer Income Tax Assistance (VITA) return preparation.
You can file your tax return in a fast,

program offers free tax help to people who gen- • TCE. Go to IRS.gov/TCE, download the
erally make $64,000 or less, persons with disa- free IRS2Go app, or call 888-227-7669 to
easy, and convenient way using your bilities, and limited-English-speaking taxpayers find the nearest TCE location for free tax
personal computer. A computer with In- who need help preparing their own tax returns. return preparation.
ternet access and tax preparation software are The Tax Counseling for the Elderly (TCE) pro-
all you need. Best of all, you can e-file from the gram offers free tax help for all taxpayers, par-
comfort of your home 24 hours a day, 7 days a ticularly those who are 60 years of age and
Using a Tax Professional
week. older. TCE volunteers specialize in answering Many tax professionals electronically file tax re-
IRS-approved tax preparation software is questions about pensions and retirement-rela- turns for their clients. You may personally enter
available online and in retail stores. For informa- ted issues unique to seniors. your PIN or complete Form 8879, IRS e-file Sig-
tion, visit IRS.gov/efile. You can go to IRS.gov to see your options nature Authorization, to authorize the tax profes-
for preparing and filing your return, which in- sional to enter your PIN on your return.
Through Employers and Financial clude the following.
Note. Tax professionals may charge a fee
Institutions • Free File. Go to IRS.gov/FreeFile. See if for IRS e-file. Fees can vary depending on the
you qualify to use brand-name software to professional and the specific services rendered.
Some businesses offer free e-file to their em-
ployees, members, or customers. Others offer it

Table 1-5. When To File Your 2023 Return
When Do I For U.S. citizens and residents who file returns on a calendar year
Have To File? basis.
April 15, 2024, is the due date for filing your For Certain Taxpayers
2023 income tax return if you use the calendar Outside
year. If you live in Maine or Massachusetts, you For Most Taxpayers the United States
have until April 17, 2024, because of the Patri-
ots’ Day and Emancipation Day holidays. For a No extension requested April 15, 2024 June 17, 2024
quick view of due dates for filing a return with or Automatic extension October 15, 2024 October 15, 2024
without an extension of time to file (discussed
later), see Table 1-5. ticipant in the IRS e-file program that transmits If you don't pay the tax due by the regu-
electronic tax return information directly to the ! lar due date (April 15 for most taxpay-
If you use a fiscal year (a year ending on the
IRS. CAUTION ers), you will owe interest. You may
last day of any month except December, or a
The electronic postmark is a record of when also be charged penalties, discussed later.
52-53-week year), your income tax return is due
the authorized electronic return transmitter re-
by the 15th day of the 4th month after the close How to get the automatic extension. You
ceived the transmission of your electronically
of your fiscal year. can get the automatic extension by:
filed return on its host system. The date and
When the due date for doing any act for tax time in your time zone controls whether your 1. Using IRS e-file (electronic filing), or
purposes—filing a return, paying taxes, electronically filed return is timely.
etc.—falls on a Saturday, Sunday, or legal holi- 2. Filing a paper form.
Filing late. If you don't file your return by the
day, the due date is delayed until the next busi- due date, you may have to pay a failure-to-file E-file options. There are two ways you can
ness day. penalty and interest. For more information, see use e-file to get an extension of time to file.
Filing paper returns on time. Your paper re- Penalties, later. Also see Interest under Amount Complete Form 4868 to use as a worksheet. If
turn is filed on time if it is mailed in an envelope You Owe, later. you think you may owe tax when you file your
that is properly addressed, has enough post- If you were due a refund but you didn't file a return, use Part II of the form to estimate your
age, and is postmarked by the due date. If you return, you must generally file within 3 years balance due. If you e-file Form 4868 to the IRS,
send your return by registered mail, the date of from the date the return was due (including ex- don't send a paper Form 4868.
the registration is the postmark date. The regis- tensions) to get that refund.
E-file using your personal computer or a
tration is evidence that the return was delivered.
Nonresident alien. If you are a nonresident tax professional. You can use a tax software
If you send a return by certified mail and have
alien and earn wages subject to U.S. income package with your personal computer or a tax
your receipt postmarked by a postal employee,
tax withholding, your 2023 U.S. income tax re- professional to file Form 4868 electronically.
the date on the receipt is the postmark date.
turn (Form 1040-NR) is due by: Free File and Free File Fillable Forms, both
The postmarked certified mail receipt is evi-
• April 15, 2024, if you use a calendar year; available at IRS.gov, allow you to prepare and
dence that the return was delivered.
or e-file Form 4868 for free. You will need to pro-
Private delivery services. If you choose to vide certain information from your 2022 tax re-
mail your return, you can use certain private de- • The 15th day of the 4th month after the end turn. If you wish to make a payment by direct
livery services designated by the IRS to meet of your fiscal year, if you use a fiscal year. transfer from your bank account, see Pay online
the “timely mailing treated as timely filing/ If you don't earn wages subject to U.S. in- under How To Pay, later, in this chapter.
paying” rule for tax returns and payments. come tax withholding, your return is due by:
These private delivery services include only the E-file and pay by credit or debit card or
following. • June 17, 2024, if you use a calendar year; by direct transfer from your bank account.
or You can get an extension by paying part or all of
• UPS Next Day Air Early A.M., UPS Next your estimate of tax due by using a credit or
Day Air, UPS Next Day Air Saver, UPS 2nd • The 15th day of the 6th month after the end
of your fiscal year, if you use a fiscal year. debit card or by direct transfer from your bank
Day Air, UPS 2nd Day Air A.M., UPS account. You can do this by phone or over the
Worldwide Express Plus, and UPS World- See Pub. 519 for more filing information. Internet. You don't file Form 4868. See Pay on-
wide Express. line under How To Pay, later, in this chapter.
Filing for a decedent. If you must file a final
• FedEx First Overnight, FedEx Priority income tax return for a taxpayer who died dur- Filing a paper Form 4868. You can get an ex-
Overnight, FedEx Standard Overnight, Fe- ing the year (a decedent), the return is due by tension of time to file by filing a paper Form
dEx 2 Day, FedEx International Next Flight the 15th day of the 4th month after the end of 4868. If you are a fiscal year taxpayer, you must
Out, FedEx International Priority, FedEx In- the decedent's normal tax year. See Pub. 559. file a paper Form 4868. Mail it to the address
ternational First, and FedEx International shown in the form instructions.
Economy.
Extensions of Time To File If you want to make a payment with the form,
• DHL Express 9:00, DHL Express 10:30, make your check or money order payable to
DHL Express 12:00, DHL Express World- You may be able to get an extension of time to “United States Treasury.” Write your SSN, day-
wide, DHL Express Envelope, DHL Import file your return. There are three types of situa- time phone number, and “2023 Form 4868” on
Express 10:30, DHL Import Express 12:00, tions where you may qualify for an extension. your check or money order.
and DHL Import Express Worldwide.
• Automatic extensions. When to file. You must request the automatic
To check for any updates to the list of desig- extension by the due date for your return. You
• You are outside the United States.
nated private delivery services, go to IRS.gov/ can file your return any time before the 6-month
PDS. For the IRS mailing addresses to use if • You are serving in a combat zone. extension period ends.
you’re using a private delivery service, go to
IRS.gov/PDSStreetAddresses. When you file your return. Enter any pay-
Automatic Extension ment you made related to the extension of time
The private delivery service can tell you how
to get written proof of the mailing date. If you can’t file your 2023 return by the due date, to file on Schedule 3 (Form 1040), line 10.
you may be able to get an automatic 6-month
Filing electronic returns on time. If you use extension of time to file.
IRS e-file, your return is considered filed on time
Individuals Outside the
if the authorized electronic return transmitter Example. If your return is due on April 15, United States
postmarks the transmission by the due date. An 2024, you will have until October 15, 2024, to You are allowed an automatic 2-month exten-
authorized electronic return transmitter is a par- file. sion, without filing Form 4868 (until June 17,

2024, if you use the calendar year), to file your 1. The Arabian peninsula area, effective Jan-
2023 return and pay any federal income tax due uary 17, 1991. Table 1-6. Six Steps for Preparing
if: Your Paper Return
2. The Kosovo area, effective March 24,
1. You are a U.S. citizen or resident; and 1999.
1 — Get your records together for income
2. On the due date of your return: 3. The Afghanistan area, effective Septem- and expenses.
ber 19, 2001.
a. You are living outside the United
2 — Get the forms, schedules, and
States and Puerto Rico, and your See Pub. 3 for more detailed information on publications you need.
main place of business or post of duty the locations comprising each combat zone.
is outside the United States and Pu- Pub. 3 also has information about other tax ben- 3 — Fill in your return.
erto Rico; or efits available to military personnel serving in a 4 — Check your return to make sure it is
b. You are in military or naval service on combat zone.
correct.
duty outside the United States and Extension period. The deadline for filing your
Puerto Rico. 5 — Sign and date your return.
return, paying any tax due, filing a claim for re-
fund, and taking other actions with the IRS is 6 — Attach all required forms and
However, if you pay the tax due after the reg-
extended in two steps. First, your deadline is schedules.
ular due date (April 15 for most taxpayers), in-
extended for 180 days after the later of:
terest will be charged from that date until the
date the tax is paid. 1. The last day you are in a combat zone or Electronic returns. For information you may
the last day the area qualifies as a combat find useful in preparing an electronic return, see
If you served in a combat zone or qualified
zone, or Why Should I File Electronically, earlier.
hazardous duty area, you may be eligible for a
longer extension of time to file. See Individuals Substitute tax forms. You can’t use your own
2. The last day of any continuous qualified
Serving in Combat Zone, later, for special rules version of a tax form unless it meets the require-
hospitalization (defined later) for injury
that apply to you. ments explained in Pub. 1167.
from service in the combat zone.
Married taxpayers. If you file a joint return, Form W-2. If you were an employee, you
Second, in addition to the 180 days, your
only one spouse has to qualify for this automatic should receive Form W-2 from your employer.
deadline is also extended by the number of
extension. If you and your spouse file separate You will need the information from this form to
days you had left to take action with the IRS
returns, the automatic extension applies only to prepare your return. See Form W-2 under Credit
when you entered the combat zone. For exam-
the spouse who qualifies. for Withholding and Estimated Tax for 2023 in
ple, you have 31/2 months (January 1–April 15)
chapter 4.
How to get the extension. To use this auto- to file your tax return. Any days left in this period
matic extension, you must attach a statement to when you entered the combat zone (or the en- Your employer is required to provide or send
your return explaining what situation qualified tire 31/2 months if you entered it before the be- Form W-2 to you no later than January 31,
you for the extension. (See the situations listed ginning of the year) are added to the 180 days. 2024. If it is mailed, you should allow adequate
under (2), earlier.) See Extension of Deadlines in Pub. 3 for more time to receive it before contacting your em-
information. ployer. If you still don't get the form by early
Extensions beyond 2 months. If you can’t file February, the IRS can help you by requesting
The rules on the extension for filing your re-
your return within the automatic 2-month exten- the form from your employer. When you request
turn also apply when you are deployed outside
sion period, you may be able to get an addi- IRS help, be prepared to provide the following
the United States (away from your permanent
tional 4-month extension, for a total of 6 information.
duty station) while participating in a designated
months. File Form 4868 and check the box on
line 8. contingency operation. • Your name, address (including ZIP code),
and phone number.
Qualified hospitalization. The hospitalization
No further extension. An extension of more
must be the result of an injury received while • Your SSN.
than 6 months will generally not be granted.
serving in a combat zone or a contingency op- • Your dates of employment.
However, if you are outside the United States
eration. Qualified hospitalization means:
and meet certain tests, you may be granted a • Your employer's name, address (including
longer extension. For more information, see • Any hospitalization outside the United ZIP code), and phone number.
When To File and Pay in Pub. 54. States, and
Form 1099. If you received certain types of in-
• Up to 5 years of hospitalization in the Uni- come, you may receive a Form 1099. For exam-
Individuals Serving in ted States. ple, if you received taxable interest of $10 or
Combat Zone See Pub. 3 for more information on qualified more, the payer is required to provide or send
The deadline for filing your tax return, paying hospitalizations. Form 1099 to you no later than January 31,
any tax you may owe, and filing a claim for re- 2024 (or by February 15, 2024, if furnished by a
fund is automatically extended if you serve in a
combat zone. This applies to members of the
How Do I Prepare broker). If it is mailed, you should allow ade-
quate time to receive it before contacting the
Armed Forces, as well as merchant marines My Return? payer. If you still don't get the form by February
15 (or by March 1, 2024, if furnished by a
serving aboard vessels under the operational
control of the Department of Defense, Red This section explains how to get ready to fill in broker), call the IRS for help.
Cross personnel, accredited correspondents, your tax return and when to report your income
and civilians under the direction of the Armed
Forces in support of the Armed Forces.
and expenses. It also explains how to complete
certain sections of the form. You may find Ta-
When Do I Report My
Combat zone. A combat zone is any area the
ble 1-6 helpful when you prepare your paper re- Income and Expenses?
turn.
President of the United States designates by You must figure your taxable income on the ba-
executive order as an area in which the U.S. sis of a tax year. A “tax year” is an annual ac-
Armed Forces are engaging or have engaged in counting period used for keeping records and
combat. An area usually becomes a combat reporting income and expenses. You must ac-
zone and ceases to be a combat zone on the count for your income and expenses in a way
dates the President designates by executive or- that clearly shows your taxable income. The
der. For purposes of the automatic extension, way you do this is called an accounting method.
the term “combat zone” includes the following This section explains which accounting periods
areas. and methods you can use.

Accounting Periods of the tax year is constructively received by you using an ITIN, stop using your ITIN. Use your
in that year. A check that was “made available SSN instead.
Most individual tax returns cover a calendar
to you” includes a check you have already re- Check that both the name and SSN on your
year—the 12 months from January 1 through
ceived, but not cashed or deposited. It also in- Form 1040 or 1040-SR, W-2, and 1099 agree
December 31. If you don't use a calendar year,
cludes, for example, your last paycheck of the with your social security card. If they don't, cer-
your accounting period is a fiscal year. A regular
year that your employer made available for you tain deductions and credits on your Form 1040
fiscal year is a 12-month period that ends on the
to pick up at the office before the end of the or 1040-SR may be reduced or disallowed and
last day of any month except December. A
year. It is constructively received by you in that you may not receive credit for your social secur-
52-53-week fiscal year varies from 52 to 53
year whether or not you pick it up before the end ity earnings. If your Form W-2 shows an incor-
weeks and always ends on the same day of the
of the year or wait to receive it by mail after the rect SSN or name, notify your employer or the
week.
end of the year. form-issuing agent as soon as possible to make
You choose your accounting period (tax
sure your earnings are credited to your social
year) when you file your first income tax return.
No constructive receipt. There may be security record. If the name or SSN on your so-
It can’t be longer than 12 months.
facts to show that you didn't constructively re- cial security card is incorrect, call the Social Se-
More information. For more information on ceive income. curity Administration (SSA) at 800-772-1213.
accounting periods, including how to change
Example. Lennon, a teacher, agreed to the Name change. If you changed your name be-
your accounting period, see Pub. 538.
school board's condition that, in Lennon’s ab- cause of marriage, divorce, etc., be sure to re-
sence, Lennon would receive only the differ- port the change to your local SSA office before
Accounting Methods ence between Lennon’s regular salary and the filing your return. This prevents delays in pro-
Your accounting method is the way you account salary of a substitute teacher hired by the cessing your return and issuing refunds. It also
for your income and expenses. Most taxpayers school board. Therefore, Lennon didn't con- safeguards your future social security benefits.
use either the cash method or an accrual structively receive the amount by which Len- Dependent's SSN. You must provide the SSN
method. You choose a method when you file non’s salary was reduced to pay the substitute of each dependent you claim, regardless of the
your first income tax return. If you want to teacher. dependent's age. This requirement applies to all
change your accounting method after that, you dependents (not just your children) claimed on
must generally get IRS approval. Use Form Accrual method. If you use an accrual
method, you generally report income when you your tax return.
3115 to request an accounting method change.
earn it, rather than when you receive it. You Your child must have an SSN valid for
Cash method. If you use this method, report generally deduct your expenses when you incur employment issued before the due
all items of income in the year in which you ac- them, rather than when you pay them.
!
CAUTION date of your 2023 return (including ex-
tually or constructively receive them. Generally, tensions) to be considered a qualifying child for
you deduct all expenses in the year you actually Income paid in advance. An advance pay- certain tax benefits on your original or amended
pay them. This is the method most individual ment of income is generally included in gross 2023 return. See chapter 14.
taxpayers use. income in the year you receive it. Your method
of accounting doesn't matter as long as the in- Exception. If your child was born and died
Constructive receipt. Generally, you con-
come is available to you. An advance payment in 2023 and didn't have an SSN, enter “DIED” in
structively receive income when it is credited to
may include rent or interest you receive in ad- column (2) of the Dependents section of Form
your account or set apart in any way that makes
vance and pay for services you will perform 1040 or 1040-SR and include a copy of the
it available to you. You don't need to have physi-
later. child's birth certificate, death certificate, or hos-
cal possession of it. For example, interest credi-
A limited deferral until the next tax year may pital records. The document must show that the
ted to your bank account on December 31,
be allowed for certain advance payments. See child was born alive.
2023, is taxable income to you in 2023 if you
Pub. 538 for specific information.
could have withdrawn it in 2023 (even if the No SSN. File Form SS-5, Application for a So-
amount isn't entered in your records or with- Additional information. For more information cial Security Card, with your local SSA office to
drawn until 2024). on accounting methods, including how to get an SSN for yourself or your dependent. It
change your accounting method, see Pub. 538. usually takes about 2 weeks to get an SSN. If
Garnished wages. If your employer uses
you or your dependent isn't eligible for an SSN,
your wages to pay your debts, or if your wages
are attached or garnished, the full amount is Social Security Number see Individual taxpayer identification number
(ITIN), later.
constructively received by you. You must in-
clude these wages in income for the year you
(SSN) If you are a U.S. citizen or resident alien, you
must show proof of age, identity, and citizenship
would have received them.
You must enter your SSN on your return. If you or alien status with your Form SS-5. If you are
Debts paid for you. If another person can- are married, enter the SSNs for both you and 12 or older and have never been assigned an
cels or pays your debts (but not as a gift or your spouse, whether you file jointly or sepa- SSN, you must appear in person with this proof
loan), you have constructively received the rately. at an SSA office.
amount and must generally include it in your If you are filing a joint return, include the Form SS-5 is available at any SSA office, on
gross income for the year. See Canceled Debts SSNs in the same order as the names. Use this the Internet at SSA.gov/forms/ss-5.pdf, or by
in chapter 8 for more information. same order in submitting other forms and docu- calling 800-772-1213. If you have any questions
ments to the IRS. about which documents you can use as proof of
Payment to third party. If a third party is age, identity, or citizenship, contact your SSA
paid income from property you own, you have If you, or your spouse if filing jointly,
office.
constructively received the income. It is the ! don't have an SSN (or ITIN) issued on
CAUTION or before the due date of your 2023 re-
If your dependent doesn't have an SSN by
same as if you had actually received the income
turn (including extensions), you can't claim cer- the time your return is due, you may want to ask
and paid it to the third party.
tain tax benefits on your original or an amended for an extension of time to file, as explained ear-
Payment to an agent. Income an agent re- 2023 return. lier under When Do I Have To File.
ceives for you is income you constructively re- If you don't provide a required SSN or if you
Once you are issued an SSN, use it to file provide an incorrect SSN, your tax may be in-
ceived in the year the agent receives it. If you in-
your tax return. Use your SSN to file your tax re- creased and any refund may be reduced.
dicate in a contract that your income is to be
turn even if your SSN does not authorize em-
paid to another person, you must include the Adoption taxpayer identification number
ployment or if you have been issued an SSN
amount in your gross income when the other (ATIN). If you are in the process of adopting a
that authorizes employment and you lose your
person receives it. child who is a U.S. citizen or resident and can’t
employment authorization. An ITIN will not be
Check received or available. A valid check issued to you once you have been issued an
that was made available to you before the end SSN. If you received your SSN after previously

get an SSN for the child until the adoption is fi- tify your account, this helps the IRS respond to Form 1040 or 1040-SR. If you file a paper re-
nal, you can apply for an ATIN to use instead of your correspondence promptly. turn, attach any forms and schedules behind
an SSN. Form 1040 or 1040-SR in order of the “Attach-
ment Sequence No.” shown in the upper right
File Form W-7A, Application for Taxpayer
Identification Number for Pending U.S. Adop-
Presidential Election corner of the form or schedule. Then, arrange
tions, with the IRS to get an ATIN if all of the fol- Campaign Fund all other statements or attachments in the same
lowing are true. order as the forms and schedules they relate to
This fund helps pay for Presidential election and attach them last. Don't attach items unless
• You have a child living with you who was campaigns. The fund also helps pay for pedia- required to do so.
placed in your home for legal adoption. tric medical research. If you want $3 to go to
• You can’t get the child's existing SSN even this fund, check the box. If you are filing a joint
though you have made a reasonable at- return, your spouse can also have $3 go to the Third Party Designee
tempt to get it from the birth parents, the fund. If you check the box, your tax or refund
If you want to allow your preparer, a friend, a
placement agency, and other persons. won't change.
family member, or any other person you choose
• You can’t get an SSN for the child from the to discuss your 2023 tax return with the IRS,
SSA because, for example, the adoption Computations check the “Yes” box in the “Third Party Desig-
isn't final. nee” area of your return. Also, enter the design-
The following information may be useful in mak- ee's name, phone number, and any five digits
• You are eligible to claim the child as a de- ing the return easier to complete.
pendent on your tax return. the designee chooses as their personal identifi-
Rounding off dollars. You can round off cents cation number (PIN).
After the adoption is final, you must apply for an If you check the “Yes” box, you, and your
to whole dollars on your return and schedules. If
SSN for the child. You can’t continue using the spouse if filing a joint return, are authorizing the
you do round to whole dollars, you must round
ATIN. IRS to call the designee to answer any ques-
all amounts. To round, drop amounts under 50
See Form W-7A for more information. tions that arise during the processing of your re-
cents and increase amounts from 50 to 99
Nonresident alien spouse. If your spouse is a cents to the next dollar. For example, $1.39 be- turn. You are also authorizing the designee to:
nonresident alien, your spouse must have either comes $1 and $2.50 becomes $3. • Give information that is missing from your
an SSN or an ITIN if: If you have to add two or more amounts to return to the IRS;
figure the amount to enter on a line, include
• You file a joint return, or • Call the IRS for information about the pro-
cents when adding the amounts and round off
• Your spouse is filing a separate return. cessing of your return or the status of your
only the total.
refund or payments;
If your spouse isn't eligible for an SSN, see the If you are entering amounts that include
following discussion on ITINs. cents, make sure to include the decimal point. • Receive copies of notices or transcripts re-
There is no cents column on Form 1040 or lated to your return, upon request; and
Individual taxpayer identification number 1040-SR.
(ITIN). The IRS will issue you an ITIN if you are
• Respond to certain IRS notices about math
Equal amounts. If you are asked to enter the errors, offsets (see Refunds, later), and re-
a nonresident or resident alien and you don't
smaller or larger of two equal amounts, enter turn preparation.
have and aren’t eligible to get an SSN. This also
applies to an alien spouse or dependent. To ap- that amount. You aren't authorizing the designee to re-
ply for an ITIN, file Form W-7 with the IRS. It ceive any refund check, bind you to anything
Negative amounts. If you file a paper return
usually takes about 7 weeks to get an ITIN. En- (including any additional tax liability), or other-
and you need to enter a negative amount, put
ter the ITIN on your tax return wherever an SSN wise represent you before the IRS. If you want
the amount in parentheses rather than using a
is requested. to expand the designee's authorization, see
minus sign. To combine positive and negative
Make sure your ITIN hasn’t expired. See In- Pub. 947.
amounts, add all the positive amounts together
dividual taxpayer identification number (ITIN) and then subtract the negative amounts. The authorization will automatically end no
renewal, earlier, for more information on expira- later than the due date (without any extensions)
tion and renewal of ITINs. You can also find for filing your 2024 tax return. This is April 15,
more information at IRS.gov/ITIN. Attachments 2025, for most people.
See your form instructions for more informa-
If you are applying for an ITIN for your- Depending on the form you file and the items re- tion.
TIP self, your spouse, or a dependent in or- ported on your return, you may have to com-
der to file your tax return, attach your plete additional schedules and forms and attach
completed tax return to your Form W-7. See the them to your paper return. Signatures
Form W-7 instructions for how and where to file.
You may be able to file a paperless re- You must sign and date your return. If you file a
You can’t e-file a return using an ITIN in TIP turn using IRS e-file. There's nothing to joint return, both you and your spouse must sign
the calendar year the ITIN is issued; attach or mail, not even your Forms the return, even if only one of you had income.
!
CAUTION however, you can e-file returns in the
W-2. See Why Should I File Electronically, ear-
lier. If you file a joint return, both spouses
following years.
! are generally liable for the tax, and the
Form W-2. Form W-2 is a statement from your CAUTION entire tax liability may be assessed
ITIN for tax use only. An ITIN is for federal against either spouse. See chapter 2.
employer of wages and other compensation
tax use only. It doesn't entitle you to social se-
paid to you and taxes withheld from your pay. Your return isn't considered a valid return un-
curity benefits or change your employment or
You should have a Form W-2 from each em- less you sign it in accordance with the require-
immigration status under U.S. law.
ployer. If you file a paper return, be sure to at- ments in the instructions for your return.
Penalty for not providing social security tach a copy of Form W-2 in the place indicated
You must handwrite your signature on your
number. If you don't include your SSN or the on your return. For more information, see Form
return if you file it on paper. Digital, electronic, or
SSN of your spouse or dependent as required, W-2 in chapter 4.
typed-font signatures are not valid signatures
you may have to pay a penalty. See the discus- for Forms 1040 or 1040-SR filed on paper.
sion on Penalties, later, for more information.
Form 1099-R. If you received a Form 1099-R If you electronically file your return, you can
SSN on correspondence. If you write to the showing federal income tax withheld, and you use an electronic signature to sign your return in
IRS about your tax account, be sure to include file a paper return, attach a copy of that form in accordance with the requirements contained in
your SSN (and the name and SSN of your the place indicated on your return. the instructions for your return.
spouse, if you filed a joint return) in your corre-
spondence. Because your SSN is used to iden-

Failure to sign your return in accordance The preparer must give you a copy of your Cashing your refund check. Cash your tax
with these requirements may prevent you from return in addition to the copy filed with the IRS. refund check soon after you receive it. Checks
obtaining a refund. If you prepare your own return, leave this expire the last business day of the 12th month
Enter your occupation. If you file a joint re- area blank. If another person prepares your re- of issue.
turn, enter both your occupation and your spou- turn and doesn't charge you, that person If your check has expired, you can apply to
se's occupation. shouldn't sign your return. the IRS to have it reissued.
If you have questions about whether a pre-
When someone can sign for you. You can Refund more or less than expected. If you
parer must sign your return, contact any IRS of-
appoint an agent to sign your return if you are: receive a check for a refund you aren’t entitled
fice. to, or for an overpayment that should have been
1. Unable to sign the return because of dis-
credited to estimated tax, don't cash the check.
ease or injury,
Refunds Call the IRS.
2. Absent from the United States for a contin- If you receive a check for more than the re-
uous period of at least 60 days before the When you complete your return, you will deter- fund you claimed, don't cash the check until you
due date for filing your return, or mine if you paid more income tax than you receive a notice explaining the difference.
owed. If so, you can get a refund of the amount If your refund check is for less than you
3. Given permission to do so by the IRS of-
you overpaid or you can choose to apply all or claimed, it should be accompanied by a notice
fice in your area.
part of the overpayment to your next year's explaining the difference. Cashing the check
Power of attorney. A return signed by an (2024) estimated tax. doesn't stop you from claiming an additional
agent in any of these cases must have a power If you choose to have a 2023 overpay- amount of refund.
of attorney (POA) attached that authorizes the ment applied to your 2024 estimated If you didn't receive a notice and you have
agent to sign for you. You can use a POA that !
CAUTION tax, you can’t change your mind and any questions about the amount of your refund,
states that the agent is granted authority to sign have any of it refunded to you after the due date you should wait 2 weeks. If you still haven’t re-
the return, or you can use Form 2848. Part I of (without extensions) of your 2023 return. ceived a notice, call the IRS.
Form 2848 must state that the agent is granted
authority to sign the return. Follow the Instructions for Form 1040 to Offset against debts. If you are due a refund
complete the entries to claim your refund and/or but haven’t paid certain amounts you owe, all or
Court-appointed conservator, guardian, or to apply your overpayment to your 2024 estima- part of your refund may be used to pay all or
other fiduciary. If you are a court-appointed ted tax. part of the past-due amount. This includes
conservator, guardian, or other fiduciary for a past-due federal income tax, other federal debts
mentally or physically incompetent individual If your refund for 2023 is large, you may (such as student loans), state income tax, child
who has to file a tax return, sign your name for TIP want to decrease the amount of in- and spousal support payments, and state un-
the individual. File Form 56. come tax withheld from your pay in employment compensation debt. You will be no-
2024. See chapter 4 for more information. tified if the refund you claimed has been offset
Unable to sign. If the taxpayer is mentally against your debts.
competent but physically unable to sign the re- DIRECT DEPOSIT Instead of getting a pa-
turn or POA, a valid “signature” is defined under Simple. Safe. Secure. per check, you may be Joint return and injured spouse. When a
state law. It can be anything that clearly indi- able to have your refund deposited directly into joint return is filed and only one spouse owes a
cates the taxpayer's intent to sign. For example, your checking, savings, health savings, broker- past-due amount, the other spouse can be con-
the taxpayer's “X” with the signatures of two wit- age, or other similar account, including an indi- sidered an injured spouse. An injured spouse
nesses might be considered a valid signature vidual retirement arrangement (IRA). Follow the should file Form 8379, Injured Spouse Alloca-
under a state's law. Instructions for Form 1040 to request direct de- tion, if both of the following apply and the
posit. If the direct deposit can’t be done, the IRS spouse wants a refund of their share of the
Spouse unable to sign. If your spouse is un- will send a check instead. overpayment shown on the joint return.
able to sign for any reason, see Signing a joint
return in chapter 2. Don't request a deposit of any part of your 1. You aren’t legally obligated to pay the
refund to an account that isn't in your name. past-due amount.
Child's return. If a child has to file a tax return Don't allow your tax preparer to deposit any part
but can’t sign the return, the child's parent, 2. You made and reported tax payments
of your refund into the preparer’s account. The (such as federal income tax withheld from
guardian, or another legally responsible person number of direct deposits to a single account or
must sign the child's name, followed by the your wages or estimated tax payments), or
prepaid debit card is limited to three refunds a claimed a refundable tax credit (see the
words “By (your signature), parent for minor year. After this limit is exceeded, paper checks
child.” credits listed under Who Should File, ear-
will be sent instead. Learn more at IRS.gov/ lier).
DepositLimit.
Paid Preparer IRA. You can have your refund (or part of it) di- Note. If the injured spouse's residence was
rectly deposited to a traditional IRA, Roth IRA, in a community property state at any time during
Generally, anyone you pay to prepare, assist in or SEP-IRA, but not a SIMPLE IRA. You must the tax year, special rules may apply. See the
preparing, or review your tax return must sign it establish the IRA at a bank or financial institu- Instructions for Form 8379.
and fill in the other blanks, including their Pre- tion before you request direct deposit. If you haven’t filed your joint return and you
parer Tax Identification Number (PTIN), in the know that your joint refund will be offset, file
paid preparer's area of your return. TreasuryDirect®. You can request a deposit Form 8379 with your return. You should receive
of your refund to a TreasuryDirect® online ac- your refund within 14 weeks from the date the
Many preparers are required to e-file the tax
count to buy U.S. Treasury marketable securi- paper return is filed or within 11 weeks from the
returns they prepare. They sign these e-filed re-
ties (if available) and savings bonds. For more date the return is filed electronically.
turns using their tax preparation software. How-
information, go to https://TreasuryDirect.gov. If you filed your joint return and your joint re-
ever, you can choose to have your return com-
pleted on paper if you prefer. In that case, the Split refunds. If you choose direct deposit, fund was offset, file Form 8379 by itself. When
paid preparer can sign the paper return man- you may be able to split the refund and have it filed after offset, it can take up to 8 weeks to re-
ually or use a rubber stamp or mechanical de- deposited into more than one account or use it ceive your refund. Don't attach the previously
vice. The preparer is personally responsible for to buy up to $5,000 in paper or electronic series filed tax return, but do include copies of all
affixing their signature to the return. I savings bonds. Complete Form 8888 and at- Forms W-2 and W-2G for both spouses and any
If the preparer is self-employed (that is, not tach it to your return. Forms 1099 that show income tax withheld. The
employed by any person or business to prepare processing of Form 8379 may be delayed if
Overpayment less than one dollar. If your these forms aren’t attached, or if the form is in-
the return), the preparer should check the
overpayment is less than $1, you won't get a re- complete when filed.
self-employed box in the “Paid Preparer Use
fund unless you ask for it in writing.
Only” space on the return.

A separate Form 8379 must be filed for each To get more information about EFTPS or to your 2023 income tax return. See chapter 4 for
tax year to be considered. enroll in EFTPS, visit EFTPS.gov or call information on how to pay estimated tax.
800-555-4477. To contact EFTPS using Tele-
An injured spouse claim is different
communications Relay Services (TRS) for peo- Interest
! from an innocent spouse relief request.
ple who are deaf, hard of hearing, or have a
CAUTION An injured spouse uses Form 8379 to
speech disability, dial 711 and then provide the Interest is charged on tax you don't pay by the
request the division of the tax overpayment at- due date of your return. Interest is charged even
TRS assistant the 800-555-4477 number or
tributed to each spouse. An innocent spouse if you get an extension of time for filing.
800-733-4829. Additional information about
uses Form 8857, Request for Innocent Spouse
EFTPS is also available in Pub. 966. If the IRS figures your tax for you, to
Relief, to request relief from joint liability for tax,
To pay using a debit or credit card, you can TIP avoid interest for late payment, you
interest, and penalties on a joint return for items
call one of the following service providers. must pay the bill by the date specified
of the other spouse (or former spouse) that
There is a convenience fee charged by these on the bill or by the due date of your return,
were incorrectly reported on the joint return. For
providers that varies by provider, card type, and whichever is later. For information, see Tax Fig-
information on innocent spouses, see Relief
from joint responsibility under Filing a Joint Re- payment amount. ured by IRS in chapter 13.
turn in chapter 2.
WorldPay US, Inc. Interest on penalties. Interest is charged on
844-PAY-TAX-8TM (844-729-8298) the failure-to-file penalty, the accuracy-related
Amount You Owe www.payUSAtax.com penalty, and the fraud penalty from the due date
of the return (including extensions) to the date
When you complete your return, you will deter- ACI Payments, Inc. of payment. Interest on other penalties starts on
mine if you have paid the full amount of tax that 888-UPAY-TAXTM (888-872-9829) the date of notice and demand, but isn't
you owe. If you owe additional tax, you should fed.acipayonline.com charged on penalties paid within 21 calendar
pay it with your return. days from the date of the notice (or within 10
business days if the notice is for $100,000 or
You don't have to pay if the amount you Link2Gov Corporation
more).
TIP owe is under $1. 888-PAY-1040TM (888-729-1040)
www.PAY1040.com Interest due to IRS error or delay. All or part
If the IRS figures your tax for you, you will re- of any interest you were charged can be for-
ceive a bill for any tax that is due. You should For the latest details on how to pay by given if the interest is due to an unreasonable
pay this bill within 30 days (or by the due date of phone, go to IRS.gov/Payments. error or delay by an officer or employee of the
your return, if later). See Tax Figured by IRS in IRS in performing a ministerial or managerial
Pay by cash. Cash is an in-person payment act.
chapter 13.
option for individuals provided through retail A ministerial act is a procedural or mechani-
If you don't pay your tax when due, you partners with a maximum of $1,000 per day per cal act that occurs during the processing of your
! may have to pay a failure-to-pay pen- transaction. To make a cash payment, choose a case. A managerial act includes personnel
CAUTION alty. See Penalties, later. For more in- payment processor online at transfers and extended personnel training. A
formation about your balance due, see Pub. fed.acipayonline.com or www.PAY1040.com. decision concerning the proper application of
594. Don’t send cash payments through the mail. federal tax law isn't a ministerial or managerial
Pay by check or money order. Make your act.
If the amount you owe for 2023 is large,
check or money order payable to “United States The interest can be forgiven only if you
TIP you may want to increase the amount Treasury” for the full amount due. Don't send aren’t responsible in any important way for the
of income tax withheld from your pay or
cash. Don't attach the payment to your return. error or delay and the IRS has notified you in
make estimated tax payments for 2024. See
Show your correct name, address, SSN, day- writing of the deficiency or payment. For more
chapter 4 for more information.
time phone number, and the tax year and form information, see Pub. 556.
number on the front of your check or money or- Interest and certain penalties may also be
How To Pay der. If you are filing a joint return, enter the SSN suspended for a limited period if you filed your
shown first on your tax return. return by the due date (including extensions)
You can pay online, by phone, by mobile device, and the IRS doesn't provide you with a notice
in cash, or by check or money order. Don't in- Notice to taxpayers presenting checks. specifically stating your liability and the basis for
clude any estimated tax payment for 2024 in When you provide a check as payment, you au- it before the close of the 36-month period begin-
this payment. Instead, make the estimated tax thorize us either to use information from your ning on the later of:
payment separately. check to make a one-time electronic fund trans-
fer from your account or to process the payment
• The date the return is filed, or
Bad check or payment. The penalty for writ-
ing a bad check to the IRS is $25 or 2% of the as a check transaction. When we use informa- • The due date of the return without regard
check, whichever is more. This penalty also ap- tion from your check to make an electronic fund to extensions.
plies to other forms of payment if the IRS transfer, funds may be withdrawn from your ac- For more information, see Pub. 556.
doesn't receive the funds. count as soon as the same day we receive your
payment, and you will not receive your check
Pay online. Paying online is convenient and back from your financial institution. Installment Agreement
secure and helps make sure we get your pay- If you can’t pay the full amount due with your re-
ments on time. No checks of $100 million or more accep- turn, you can ask to make monthly installment
You can pay online with a direct transfer ted. The IRS can’t accept a single check (in- payments for the full or a partial amount. How-
from your bank account using IRS Direct Pay or cluding a cashier’s check) for amounts of ever, you will be charged interest and may be
the Electronic Federal Tax Payment System $100,000,000 ($100 million) or more. If you are charged a late payment penalty on the tax not
(EFTPS), or by debit or credit card. sending $100 million or more by check, you’ll paid by the date your return is due, even if your
To pay your taxes online or for more informa- need to spread the payment over two or more request to pay in installments is granted. If your
tion, go to IRS.gov/Payments. checks with each check made out for an request is granted, you must also pay a fee. To
amount less than $100 million. This limit doesn’t limit the interest and penalty charges, pay as
Pay by phone. Paying by phone is another
apply to other methods of payment (such as much of the tax as possible with your return. But
safe and secure method of paying online. Use
electronic payments). Please consider a before requesting an installment agreement,
one of the following methods.
method of payment other than check if the you should consider other less costly alterna-
• EFTPS. amount of the payment is over $100 million. tives, such as a bank loan or credit card pay-
• Debit or credit card. ment.
Estimated tax payments. Don't include any
2024 estimated tax payment in the payment for

To apply for an installment agreement on- file it electronically. See Why Should I File Elec- You can use your checkbook to keep a re-
line, go to IRS.gov/OPA. You can also use Form tronically, earlier. cord of your income and expenses. You also
9465. need to keep documents, such as receipts and
Mailing your paper return. Mail your paper
In addition to paying by check or money or- sales slips, that can help prove a deduction.
return to the address shown in the Instructions
der, you can use a credit or debit card or direct In this section, you will find guidance about
for Form 1040.
payment from your bank account to make in- basic records that everyone should keep. The
stallment agreement payments. See How To section also provides guidance about specific
Pay, earlier. What Happens After records you should keep for certain items.
I File? Electronic records. All requirements that ap-
Gift To Reduce Debt ply to hard copy books and records also apply
Held by the Public After you send your return to the IRS, you may
have some questions. This section discusses
to electronic storage systems that maintain tax
books and records. When you replace hard
You can make a contribution (gift) to re- concerns you may have about recordkeeping, copy books and records, you must maintain the
duce debt held by the public. If you your refund, and what to do if you move. electronic storage systems for as long as they
wish to do so, make a separate check are material to the administration of tax law.
payable to “Bureau of the Fiscal Service.” What Records Should For details on electronic storage system re-
quirements, see Revenue Procedure 97-22,
Send your check to:
I Keep? which is on page 9 of Internal Revenue Bulletin
1997-13 at IRS.gov/pub/irs-irbs/irb97-13.pdf.
This part discusses why you should keep re-
Bureau of the Fiscal Service cords, what kinds of records you should keep, Copies of tax returns. You should keep cop-
ATTN: Department G and how long you should keep them. ies of your tax returns as part of your tax re-
P.O. Box 2188 cords. They can help you prepare future tax re-
Parkersburg, WV 26106-2188 You must keep records so that you can turns, and you will need them if you file an
prepare a complete and accurate in- amended return or are audited. Copies of your
RECORDS come tax return. The law doesn't re-
Or enclose your separate check in the envelope returns and other records can be helpful to your
quire any special form of records. However, you survivor or the executor or administrator of your
with your income tax return. Don't add this gift to
should keep all receipts, canceled checks or estate.
any tax you owe.
other proof of payment, and any other records If necessary, you can request a copy of a re-
For information on making this type of gift to support any deductions or credits you claim. turn and all attachments (including Form W-2)
online, go to TreasururyDirect.gov/Help-Center/ If you file a claim for refund, you must be from the IRS by using Form 4506. There is a
Public-Debt-FAQs/#DebtFinance and see the able to prove by your records that you have charge for a copy of a return. For information on
information under “How do you make a contri- overpaid your tax. the cost and where to file, see the Instructions
bution to reduce the debt?” This part doesn't discuss the records you for Form 4506.
You may be able to deduct this gift as a should keep when operating a business. For in- If you just need information from your return,
charitable contribution on next year's tax return formation on business records, see Pub. 583. you can order a transcript in one of the following
if you itemize your deductions on Schedule A ways.
(Form 1040).
Why Keep Records? • Go to IRS.gov/Transcript.
• Call 800-908-9946.
Name and Address Good records help you:
• Use Form 4506-T or Form 4506T-EZ.
• Identify sources of income. Your records
After you have completed your return, fill in your can identify the sources of your income to There is no fee for a transcript. For more infor-
name and address in the appropriate area of help you separate business from nonbusi- mation, see Form 4506-T.
Form 1040 or 1040-SR. ness income and taxable from nontaxable
You must include your SSN in the cor- income. Basic Records
! rect place on your tax return. • Keep track of expenses. You can use
CAUTION your records to identify expenses for which Basic records are documents that everybody
you can claim a deduction. This helps you should keep. These are the records that prove
P.O. box. If your post office doesn't deliver mail your income and expenses. If you own a home
determine if you can itemize deductions on
to your street address and you have a P.O. box, or investments, your basic records should con-
your tax return.
enter your P.O. box number on the line for your tain documents related to those items.
present home address instead of your street ad- • Keep track of the basis of property. You
dress. need to keep records that show the basis Income. Your basic records prove the amounts
of your property. This includes the original you report as income on your tax return. Your in-
Foreign address. If your address is outside cost or other basis of the property and any come may include wages, dividends, interest,
the United States or its territories, enter the city improvements you made. and partnership or S corporation distributions.
name on the appropriate line of your Form 1040 Your records can also prove that certain
or 1040-SR. Don't enter any other information • Prepare tax returns. You need records to amounts aren’t taxable, such as tax-exempt in-
on that line, but also complete the spaces below prepare your tax return. terest.
that line. • Support items reported on tax returns.
1. Foreign country name. The IRS may question an item on your re- Note. If you receive a Form W-2, keep Copy
turn. Your records will help you explain any C until you begin receiving social security bene-
2. Foreign province/state/county. item and arrive at the correct tax. If you fits. This will help protect your benefits in case
3. Foreign postal code. can’t produce the correct documents, you there is a question about your work record or
may have to pay additional tax and be sub- earnings in a particular year.
Don’t abbreviate the country name. Follow the ject to penalties.
Expenses. Your basic records prove the ex-
country's practice for entering the postal code
penses for which you claim a deduction (or
and the name of the province, county, or state.
Kinds of Records To Keep credit) on your tax return. Your deductions may
include alimony, charitable contributions, mort-
Where Do I File? The IRS doesn't require you to keep your re- gage interest, and real estate taxes. You may
cords in a particular way. Keep them in a man- also have childcare expenses for which you can
After you complete your return, you must send it ner that allows you and the IRS to determine claim a credit.
to the IRS. You can mail it or you may be able to your correct tax.

Home. Your basic records should enable you
to determine the basis or adjusted basis of your
that apply to income tax returns. Unless other-
wise stated, the years refer to the period begin-
Interest on Refunds
home. You need this information to determine if ning after the return was filed. Returns filed be- If you are due a refund, you may get interest on
you have a gain or loss when you sell your fore the due date are treated as being filed on it. The interest rates are adjusted quarterly.
home or to figure depreciation if you use part of the due date. If the refund is made within 45 days after the
your home for business purposes or for rent. due date of your return, no interest will be paid.
Your records should show the purchase price, Table 1-7. Period of Limitations If you file your return after the due date (includ-
settlement or closing costs, and the cost of any ing extensions), no interest will be paid if the re-
improvements. They may also show any casu- IF you... THEN the fund is made within 45 days after the date you
alty losses deducted and insurance reimburse- period is... filed. If the refund isn't made within this 45-day
ments for casualty losses. period, interest will be paid from the due date of
For detailed information on basis, including 1 File a return and (2), 3 years. the return or from the date you filed, whichever
which settlement or closing costs are included (3), and (4) don't apply is later.
in the basis of your home, see Pub. 551. to you, Accepting a refund check doesn't change
When you sell your home, your records 2 Don't report income 6 years. your right to claim an additional refund and in-
should show the sales price and any selling ex- terest. File your claim within the period of time
that you should and it is
penses, such as commissions. For information that applies. See Amended Returns and Claims
more than 25% of the
on selling your home, see Pub. 523. for Refund, later. If you don't accept a refund
gross income shown on
Investments. Your basic records should ena- your return, check, no more interest will be paid on the over-
ble you to determine your basis in an invest- payment included in the check.
ment and whether you have a gain or loss when 3 File a fraudulent return, No limit.
Interest on erroneous refund. All or part of
you sell it. Investments include stocks, bonds, 4 Don't file a return, No limit. any interest you were charged on an erroneous
and mutual funds. Your records should show the refund will generally be forgiven. Any interest
purchase price, sales price, and commissions. 5 File a claim for credit or The later of 3
charged for the period before demand for repay-
They may also show any reinvested dividends, refund after you filed years or 2
ment was made will be forgiven unless:
stock splits and dividends, load charges, and your return, years after tax
original issue discount (OID). was paid. 1. You, or a person related to you, caused
For information on stocks, bonds, and mu- the erroneous refund in any way; or
6 File a claim for a loss 7 years.
tual funds, see Pub. 550 and Pub. 551. 2. The refund is more than $50,000.
from worthless
securities or bad debt For example, if you claimed a refund of $100
Proof of Payment deduction, on your return, but the IRS made an error and
One of your basic records is proof of payment. sent you $1,000, you wouldn't be charged inter-
You should keep these records to support cer- est for the time you held the $900 difference.
tain amounts shown on your tax return. Proof of Property. Keep records relating to property un- You must, however, repay the $900 when the
payment alone isn't proof that the item claimed til the period of limitations expires for the year in IRS asks.
on your return is allowable. You should also which you dispose of the property in a taxable
keep other documents that will help prove that disposition. You must keep these records to fig-
the item is allowable. ure your basis for computing gain or loss when Change of Address
Generally, you prove payment with a cash you sell or otherwise dispose of the property.
Generally, if you received property in a non- If you have moved, file your return using your
receipt, financial account statement, credit card
taxable exchange, your basis in that property is new address.
statement, canceled check, or substitute check.
the same as the basis of the property you gave If you move after you filed your return, you
If you make payments in cash, you should get a
up. You must keep the records on the old prop- should give the IRS clear and concise notifica-
dated and signed receipt showing the amount
erty, as well as the new property, until the period tion of your change of address. The notification
and the reason for the payment.
of limitations expires for the year in which you may be written, electronic, or oral. Send written
If you make payments using your bank ac-
dispose of the new property in a taxable dispo- notification to the Internal Revenue Service
count, you may be able to prove payment with
sition. Center serving your old address. You can use
an account statement.
Form 8822, Change of Address. If you are ex-
Account statements. You may be able to pecting a refund, also notify the post office serv-
prove payment with a legible financial account Refund Information ing your old address. This will help in forwarding
statement prepared by your bank or other finan- your check to your new address (unless you
cial institution. You can go online to check the status of your chose direct deposit of your refund). For more
2023 refund 24 hours after the IRS receives information, see Revenue Procedure 2010-16,
Pay statements. You may have deductible ex- your e-filed return, or 4 weeks after you mail a 2010-19 I.R.B. 664, available at IRS.gov/irb/
penses withheld from your paycheck, such as paper return. If you filed Form 8379 with your re- 2010-19_IRB/ar07.html.
medical insurance premiums. You should keep turn, allow 14 weeks (11 weeks if you filed elec-
Be sure to include your SSN (and the name
your year-end or final pay statements as proof tronically) before checking your refund status.
and SSN of your spouse if you filed a joint re-
of payment of these expenses. Be sure to have a copy of your 2023 tax return
turn) in any correspondence with the IRS.
available because you will need to know the fil-
How Long To Keep ing status, the first SSN shown on the return,
and the exact whole-dollar amount of the re- What if I Made
Records fund. To check on your refund, do one of the fol-
a Mistake?
lowing.
You must keep your records as long as they
may be needed for the administration of any • Go to IRS.gov/Refunds. Errors may delay your refund or result in notices
provision of the Internal Revenue Code. Gener- • Download the free IRS2Go app to your being sent to you. If you discover an error, you
ally, this means you must keep records that sup- smart phone and use it to check your re- can file an amended return or claim for refund.
port items shown on your return until the period fund status.
of limitations for that return runs out.
• Call the automated refund hotline at Amended Returns and
The period of limitations is the period of time
in which you can amend your return to claim a
800-829-1954. Claims for Refund
credit or refund or the IRS can assess additional
tax. Table 1-7 contains the periods of limitations You should correct your return if, after you have
filed it, you find that:

1. You didn't report some income, may have additional time to file your amended tax of $500 paid before that period can’t be re-
return. See Pub. 556 for details. funded or credited.
2. You claimed deductions or credits you
shouldn't have claimed, Protective claim for refund. Generally, a pro-
If you file a claim more than 3 years after you
tective claim is a formal claim or amended re-
3. You didn't claim deductions or credits you file your return, the credit or refund can’t be
turn for credit or refund normally based on cur-
could have claimed, or more than the tax you paid within the 2 years
rent litigation or expected changes in tax law or
immediately before you file the claim.
4. You should have claimed a different filing other legislation. You file a protective claim
status. (Once you file a joint return, you when your right to a refund is contingent on fu- Example. You filed your 2019 tax return on
can’t choose to file separate returns for ture events and may not be determinable until April 15, 2020. You paid taxes of $500. On No-
that year after the due date of the return. after the statute of limitations expires. A valid vember 5, 2021, after an examination of your
However, an executor may be able to protective claim doesn't have to list a particular 2019 return, you had to pay an additional tax of
make this change for a deceased spouse.) dollar amount or demand an immediate refund. $200. On May 12, 2023, you file a claim for a re-
However, a valid protective claim must:
If you need a copy of your return, see Copies of fund of $300. However, because you filed your
tax returns under Kinds of Records To Keep, • Be in writing and signed; claim more than 3 years after you filed your re-
earlier, in this chapter. turn, your refund will be limited to the $200 you
• Include your name, address, SSN or ITIN,
and other contact information; paid during the 2 years immediately before you
Form 1040-X. Use Form 1040-X to correct a filed your claim.
return you have already filed. • Identify and describe the contingencies af-
fecting the claim; Financially disabled. The time periods for
Completing Form 1040-X. On Form claiming a refund are suspended for the period
1040-X, enter your income, deductions, and • Clearly alert the IRS to the essential nature in which you are financially disabled. For a joint
credits as you originally reported them on your of the claim; and income tax return, only one spouse has to be fi-
return; the changes you are making; and the • Identify the specific year(s) for which a re- nancially disabled for the time period to be sus-
corrected amounts. Then, figure the tax on the fund is sought. pended. You are financially disabled if you are
corrected amount of taxable income and the unable to manage your financial affairs because
amount you owe or your refund. Mail your protective claim for refund to the ad- of a medically determinable physical or mental
If you owe tax, the IRS offers several pay- dress listed in the Instructions for Form 1040-X impairment that can be expected to result in
ment options. See How To Pay, earlier. The tax under Where To File. death or that has lasted or can be expected to
owed won't be subtracted from any amount you Generally, the IRS will delay action on the last for a continuous period of not less than 12
had credited to your estimated tax. protective claim until the contingency is re- months. However, you aren’t treated as finan-
If you can’t pay the full amount due with your solved. cially disabled during any period your spouse or
return, you can ask to make monthly installment Limit on amount of refund. If you file your any other person is authorized to act on your
payments. See Installment Agreement, earlier. claim within 3 years after the date you filed your behalf in financial matters.
If you overpaid tax, you can have all or part return, the credit or refund can’t be more than To claim that you are financially disabled,
of the overpayment refunded to you, or you can the part of the tax paid within the 3-year period you must send in the following written state-
apply all or part of it to your estimated tax. If you (plus any extension of time for filing your return) ments with your claim for refund.
choose to get a refund, it will be sent separately immediately before you filed the claim. This
from any refund shown on your original return. 1. A statement from your qualified physician
time period is suspended while you are finan- that includes:
Filing Form 1040-X. When completing cially disabled, discussed later.
a. The name and a description of your
Form 1040-X, don't forget to show the year of
Tax paid. Payments, including estimated tax physical or mental impairment;
your original return and explain all changes you
payments, made before the due date (without
made. Be sure to attach any forms or schedules b. The physician's medical opinion that
regard to extensions) of the original return are
needed to explain your changes. Mail your the impairment prevented you from
considered paid on the due date. For example,
Form 1040-X to the Internal Revenue Service managing your financial affairs;
income tax withheld during the year is consid-
Center serving the area where you now live (as
ered paid on the due date of the return, which is c. The physician's medical opinion that
shown in the Instructions for Form 1040-X).
April 15 for most taxpayers. the impairment was or can be expec-
However, if you are filing Form 1040-X in re-
sponse to a notice you received from the IRS, ted to result in death, or that its dura-
Example 1. You made estimated tax pay- tion has lasted, or can be expected to
mail it to the address shown on the notice.
ments of $500 and got an automatic extension last, at least 12 months;
File a separate form for each tax year in-
of time to October 15, 2020, to file your 2019 in-
volved. d. The specific time period (to the best of
come tax return. When you filed your return on
You can file Form 1040-X electronically to the physician's knowledge); and
that date, you paid an additional $200 tax. On
amend 2019 or later Forms 1040 and 1040-SR.
October 16, 2023, you filed an amended return e. The following certification signed by
For more information, see Instructions for Form
and claimed a refund of $700. October 15, 2023 the physician: “I hereby certify that, to
1040-X.
was a Sunday so you had until the next busi- the best of my knowledge and belief,
Time for filing a claim for refund. Generally, ness day, October 16, to file your amended re- the above representations are true,
you must file your claim for a credit or refund turn. Because you filed your claim within 3 years correct, and complete.”
within 3 years after the date you filed your origi- after you filed your original return, you can get a
refund of up to $700, the tax paid within the 3 2. A statement made by the person signing
nal return or within 2 years after the date you
years plus the 6-month extension period imme- the claim for credit or refund that no per-
paid the tax, whichever is later. Returns filed be-
diately before you filed the claim. son, including your spouse, was author-
fore the due date (without regard to extensions)
ized to act on your behalf in financial mat-
are considered filed on the due date (even if the
Example 2. The situation is the same as in ters during the period of disability (or the
due date was a Saturday, Sunday, or legal holi-
Example 1, except you filed your return on Oc- exact dates that a person was authorized
day). These time periods are suspended while
tober 30, 2020, 2 weeks after the extension pe- to act for you).
you are financially disabled, discussed later.
If the last day for claiming a credit or refund riod ended. You paid an additional $200 on that Exceptions for special types of refunds. If
is a Saturday, Sunday, or legal holiday, you can date. On October 30, 2023, you filed an amen- you file a claim for one of the items in the follow-
file the claim on the next business day. ded return and claimed a refund of $700. Al- ing list, the dates and limits discussed earlier
If you don't file a claim within this period, you though you filed your claim within 3 years from may not apply. These items, and where to get
may not be entitled to a credit or a refund. the date you filed your original return, the refund more information, are as follows.
was limited to $200, the tax paid within the 3
Federally declared disaster. If you were years plus the 6-month extension period imme- • Bad debt. See Pub. 550.
affected by a federally declared disaster, you diately before you filed the claim. The estimated

• Worthless security. See Pub. 550. Penalties Accuracy-related penalty. You may have to
pay an accuracy-related penalty if you underpay
• Foreign tax paid or accrued. See Pub. 514.
The law provides penalties for failure to file re- your tax because:
turns or pay taxes as required. 1. You show negligence or disregard of the
• Net operating loss carryback. See Pub.
536. rules or regulations,
Civil Penalties 2. You substantially understate your income
• Carryback of certain business tax credits.
See Form 3800. If you don't file your return and pay your tax by tax,
the due date, you may have to pay a penalty.
• Claim based on an agreement with the IRS 3. You claim tax benefits for a transaction
You may also have to pay a penalty if you sub-
extending the period for assessment of tax. that lacks economic substance, or
stantially understate your tax, understate a re-
portable transaction, file an erroneous claim for 4. You fail to disclose a foreign financial as-
Processing claims for refund. Claims are refund or credit, file a frivolous tax submission, set.
usually processed 8–12 weeks after they are or fail to supply your SSN or ITIN. If you provide
fraudulent information on your return, you may The penalty is equal to 20% of the underpay-
filed. Your claim may be accepted as filed, disal-
have to pay a civil fraud penalty. ment. The penalty is 40% of any portion of the
lowed, or subject to examination. If a claim is
underpayment that is attributable to an undis-
examined, the procedures are the same as in Filing late. If you don't file your return by the closed noneconomic substance transaction or
the examination of a tax return. due date (including extensions), you may have an undisclosed foreign financial asset transac-
If your claim is disallowed, you will receive to pay a failure-to-file penalty. The penalty is tion. The penalty won't be figured on any part of
an explanation of why it was disallowed. usually 5% for each month or part of a month an underpayment on which the fraud penalty
Taking your claim to court. You can sue for a that a return is late, but not more than 25%. The (discussed later) is charged.
refund in court, but you must first file a timely penalty is based on the tax not paid by the due
date (without regard to extensions). Negligence or disregard. The term “negli-
claim with the IRS. If the IRS disallows your
gence” includes a failure to make a reasonable
claim or doesn't act on your claim within 6
Fraud. If your failure to file is due to fraud, attempt to comply with the tax law or to exercise
months after you file it, you can then take your
the penalty is 15% for each month or part of a ordinary and reasonable care in preparing a re-
claim to court. For information on the burden of
month that your return is late, up to a maximum turn. Negligence also includes failure to keep
proof in a court proceeding, see Pub. 556.
of 75%. adequate books and records. You won't have to
The IRS provides a direct method to move pay a negligence penalty if you have a reasona-
your claim to court if: Return over 60 days late. If you file your re- ble basis for a position you took.
• You are filing a claim for a credit or refund turn more than 60 days after the due date, or The term “disregard” includes any careless,
based solely on contested income tax or extended due date, the minimum penalty is the reckless, or intentional disregard.
on estate tax or gift tax issues considered smaller of $485 or 100% of the unpaid tax.
Adequate disclosure. You can avoid the
in your previously examined returns, and
Exception. You won't have to pay the pen- penalty for disregard of rules or regulations if
• You want to take your case to court instead alty if you show that you failed to file on time be- you adequately disclose on your return a posi-
of appealing it within the IRS. cause of reasonable cause and not because of tion that has at least a reasonable basis. See
When you file your claim with the IRS, you willful neglect. Disclosure statement, later.
get the direct method by requesting in writing This exception won't apply to an item that is
Paying tax late. You will have to pay a fail- attributable to a tax shelter. In addition, it won't
that your claim be immediately rejected. A no- ure-to-pay penalty of 1/2 of 1% (0.50%) of your
tice of claim disallowance will be sent to you. apply if you fail to keep adequate books and re-
unpaid taxes for each month, or part of a month, cords, or substantiate items properly.
You have 2 years from the date of mailing of after the due date that the tax isn't paid. This
the notice of claim disallowance to file a refund penalty doesn't apply during the automatic Substantial understatement of income
suit in the U.S. District Court having jurisdiction 6-month extension of time to file period if you tax. You understate your tax if the tax shown on
or in the U.S. Court of Federal Claims. paid at least 90% of your actual tax liability on or your return is less than the correct tax. The un-
Interest on refund. If you receive a refund be- before the due date of your return and pay the derstatement is substantial if it is more than the
cause of your amended return, interest will be balance when you file the return. larger of 10% of the correct tax or $5,000. How-
paid on it from the due date of your original re- The monthly rate of the failure-to-pay pen- ever, the amount of the understatement may be
turn or the date you filed your original return, alty is half the usual rate (0.25% instead of reduced to the extent the understatement is due
whichever is later, to the date you filed the 0.50%) if an installment agreement is in effect to:
amended return. However, if the refund isn't for that month. You must have filed your return 1. Substantial authority, or
made within 45 days after you file the amended by the due date (including extensions) to qualify
return, interest will be paid up to the date the re- for this reduced penalty. 2. Adequate disclosure and a reasonable ba-
fund is paid. If a notice of intent to levy is issued, the rate sis.
will increase to 1% at the start of the first month If an item on your return is attributable to a tax
Reduced refund. Your refund may be reduced beginning at least 10 days after the day that the shelter, there is no reduction for an adequate
by an additional tax liability that has been as- notice is issued. If a notice and demand for im- disclosure. However, there is a reduction for a
sessed against you. mediate payment is issued, the rate will in- position with substantial authority, but only if you
Also, your refund may be reduced by crease to 1% at the start of the first month be-
amounts you owe for past-due federal tax, state reasonably believed that your tax treatment was
ginning after the day that the notice and more likely than not the proper treatment.
income tax, state unemployment compensation demand is issued.
debts, child support, spousal support, or certain Substantial authority. Whether there is or
This penalty can’t be more than 25% of your
other federal nontax debts, such as student was substantial authority for the tax treatment of
unpaid tax. You won't have to pay the penalty if
loans. If your spouse owes these debts, see an item depends on the facts and circumstan-
you can show that you had a good reason for
Offset against debts under Refunds, earlier, for ces. Some of the items that may be considered
not paying your tax on time.
the correct refund procedures to follow. are court opinions, Treasury regulations, reve-
Combined penalties. If both the failure-to-file nue rulings, revenue procedures, and notices
Effect on state tax liability. If your return is penalty and the failure-to-pay penalty (dis- and announcements issued by the IRS and
changed for any reason, it may affect your state cussed earlier) apply in any month, the 5% (or published in the Internal Revenue Bulletin that
income tax liability. This includes changes 15%) failure-to-file penalty is reduced by the involve the same or similar circumstances as
made as a result of an examination of your re- failure-to-pay penalty. However, if you file your yours.
turn by the IRS. Contact your state tax agency return more than 60 days after the due date or
for more information. extended due date, the minimum penalty is the Disclosure statement. To adequately dis-
smaller of $485 or 100% of the unpaid tax. close the relevant facts about your tax treatment

of an item, use Form 8275. You must also have person when it is required on a return, state- mimic legitimate business emails and websites.
a reasonable basis for treating the item the way ment, or other document. The most common form is the act of sending an
you did. For example, if you have a bank account that email to a user falsely claiming to be an estab-
In cases of substantial understatement only, earns interest, you must give your SSN to the lished legitimate enterprise in an attempt to
items that meet the requirements of Revenue bank. The number must be shown on the Form scam the user into surrendering private informa-
Procedure 2022-41 (or later update) are consid- 1099-INT or other statement the bank sends tion that will be used for identity theft.
ered adequately disclosed on your return with- you. If you don't give the bank your SSN, you The IRS doesn't initiate contacts with tax-
out filing Form 8275. will be subject to the $50 penalty. (You may also payers via emails. Also, the IRS doesn't request
Use Form 8275-R to disclose items or posi- be subject to “backup” withholding of income detailed personal information through email or
tions contrary to regulations. tax. See chapter 4.) ask taxpayers for the PIN numbers, passwords,
You won't have to pay the penalty if you are or similar secret access information for their
Transaction lacking economic substance.
able to show that the failure was due to reason- credit card, bank, or other financial accounts.
For more information on economic substance,
able cause and not willful neglect. If you receive an unsolicited email claiming
see section 7701(o).
to be from the IRS, forward the message to
Foreign financial asset. For more informa- [email protected]. You may also report misuse
tion on undisclosed foreign financial assets, see
Criminal Penalties of the IRS name, logo, forms, or other IRS prop-
section 6662(j). You may be subject to criminal prosecution erty to the Treasury Inspector General for Tax
(brought to trial) for actions such as: Administration toll free at 800-366-4484. You
Reasonable cause. You won't have to pay a can forward suspicious emails to the Federal
penalty if you show a good reason (reasonable 1. Tax evasion;
Trade Commission (FTC) at [email protected] or
cause) for the way you treated an item. You 2. Willful failure to file a return, supply infor- report them at ftc.gov/complaint. You can con-
must also show that you acted in good faith. mation, or pay any tax due; tact them at ftc.gov/idtheft or 877-IDTHEFT
This doesn't apply to a transaction that lacks (877-438-4338). If you have been a victim of
economic substance. 3. Fraud and false statements;
identity theft, see IdentityTheft.gov or Pub.
Filing erroneous claim for refund or credit. 4. Preparing and filing a fraudulent return; or 5027. People who are deaf, hard of hearing, or
You may have to pay a penalty if you file an erro- have a speech disability and who have access
5. Identity theft.
neous claim for refund or credit. The penalty is to TTY/TDD equipment can call 866-653-4261.
equal to 20% of the disallowed amount of the Go to IRS.gov/IDProtection to learn more
claim, unless you can show a reasonable basis Identity Theft about identity theft and how to reduce your risk.
for the way you treated an item. However, any
disallowed amount due to a transaction that Identity theft occurs when someone uses your
lacks economic substance won't be treated as personal information such as your name, SSN,
having a reasonable basis. The penalty won't or other identifying information, without your
be figured on any part of the disallowed amount permission, to commit fraud or other crimes. An
of the claim that relates to the earned income identity thief may use your SSN to get a job or
credit or on which the accuracy-related or fraud
penalties are charged.
may file a tax return using your SSN to receive a
refund.
2.
To reduce your risk:
Frivolous tax submission. You may have to
pay a penalty of $5,000 if you file a frivolous tax
return or other frivolous submissions. A frivolous
• Protect your SSN,
• Ensure your employer is protecting your
Filing Status
tax return is one that doesn't include enough in- SSN, and
formation to figure the correct tax or that con-
tains information clearly showing that the tax
you reported is substantially incorrect. For more
• Be careful when choosing a tax preparer.
If your tax records are affected by identity
Introduction
information on frivolous returns, frivolous sub- theft and you receive a notice from the IRS, re- This chapter helps you determine which filing
missions, and a list of positions that are identi- spond right away to the name and phone num- status to use. There are five filing statuses.
fied as frivolous, see Notice 2010-33, 2010-17 ber printed on the IRS notice or letter. • Single.
I.R.B. 609, available at IRS.gov/irb/ If your SSN has been lost or stolen or you
2010-17_IRB/ar13.html. suspect you are a victim of tax-related identity • Married filing jointly.
You will have to pay the penalty if you filed theft, visit IRS.gov/IdentityTheft to learn what • Married filing separately.
this kind of return or submission based on a friv- steps you should take.
• Head of household.
olous position or a desire to delay or interfere For more information, see Pub. 5027.
with the administration of federal tax laws. This • Qualifying surviving spouse.
includes altering or striking out the preprinted All taxpayers are now eligible for an
TIP Identity Protection Personal Identifica- If more than one filing status applies to
language above the space provided for your
tion Number (IP PIN). For more infor- TIP you, choose the one that will give you
signature. the lowest tax.
mation, see Pub. 5477. To apply for an IP PIN,
This penalty is added to any other penalty
go to IRS.gov/IPPIN and use the Get an IP PIN You must determine your filing status before
provided by law.
tool. you can determine whether you must file a tax
Fraud. If there is any underpayment of tax on return (chapter 1), your standard deduction
Victims of identity theft who are experienc-
your return due to fraud, a penalty of 75% of the (chapter 10), and your tax (chapter 11). You
ing economic harm or a systemic problem, or
underpayment due to fraud will be added to also use your filing status to determine whether
are seeking help in resolving tax problems that
your tax. you are eligible to claim certain deductions and
have not been resolved through normal chan-
Joint return. The fraud penalty on a joint re- nels, may be eligible for Taxpayer Advocate credits.
turn doesn't apply to a spouse unless some part Service (TAS) assistance. You can reach TAS
of the underpayment is due to the fraud of that by calling the National Taxpayer Advocate help- Useful Items
spouse. line at 877-777-4778 or 800-829-4059 (TTY/ You may want to see:
TDD). Deaf or hard-of-hearing individuals can
Failure to supply SSN. If you don't include
also contact the IRS through the Telecommuni- Publication
your SSN or the SSN of another person where
cations Relay Services (TRS) at FCC.gov/TRS.
required on a return, statement, or other docu- 3 Armed Forces’ Tax Guide
ment, you will be subject to a penalty of $50 for Protect yourself from suspicious emails
3
each failure. You will also be subject to a pen- or phishing schemes. Phishing is the creation 501 Dependents, Standard Deduction,
501
alty of $50 if you don't give your SSN to another and use of email and websites designed to and Filing Information
Publication 17 (2023) Chapter 2 Filing Status 21

503 Child and Dependent Care Expenses
503 your tax year, you and your spouse meet any If you and your spouse decide to file a joint
one of the following tests. return, your tax may be lower than your com-
519 U.S. Tax Guide for Aliens
bined tax for the other filing statuses. Also, your
519
555 Community Property 1. You are married and living together.

555
standard deduction (if you don’t itemize deduc-

559 Survivors, Executors, and 2. You are living together in a common law tions) may be higher, and you may qualify for
marriage recognized in the state where tax benefits that don’t apply to other filing sta-
559
Administrators
you now live or in the state where the com- tuses.
596 Earned Income Credit (EIC) mon law marriage began.
How to file. On Form 1040 or 1040-SR, show
596
925 Passive Activity and At-Risk Rules

925
3. You are married and living apart, but not your filing status as married filing jointly by
971 Innocent Spouse Relief legally separated under a decree of di- checking the “Married filing jointly” box on the
vorce or separate maintenance. Filing Status line near the top of the form. Use
971
For these and other useful items, go to IRS.gov/

the Married filing jointly column of the Tax Table,
Forms. 4. You are separated under an interlocutory
or Section B of the Tax Computation Work-
(not final) decree of divorce.
sheet, to figure your tax.
Marital Status Spouse died during the year. If your If you and your spouse each have in-
spouse died during the year, you are consid-
In general, your filing status depends on TIP come, you may want to figure your tax
ered married for the whole year for filing status both on a joint return and on separate
whether you are considered unmarried or mar- purposes. returns (using the filing status of married filing
ried. If you didn't remarry before the end of the separately). You can choose the method that
Unmarried persons. You are considered un- tax year, you can file a joint return for yourself gives the two of you the lower combined tax un-
married for the whole year if, on the last day of and your deceased spouse. For the next 2 less you are required to file separately.
your tax year, you are either: years, you may be entitled to the special bene-
fits described later under Qualifying Surviving Spouse died. If your spouse died during the
• Unmarried, or Spouse. year, you are considered married for the whole
• Legally separated from your spouse under If you remarried before the end of the tax year and can choose married filing jointly as
a divorce or separate maintenance decree. year, you can file a joint return with your new your filing status. See Spouse died during the
spouse. Your deceased spouse's filing status is year under Married persons, earlier, for more in-
State law governs whether you are married married filing separately for that year.
or legally separated under a divorce or separate formation.
maintenance decree. Married persons living apart. If you live If your spouse died in 2024 before filing a
apart from your spouse and meet certain tests, 2023 return, you can choose married filing
Divorced persons. If you are divorced un- you may be able to file as head of household jointly as your filing status on your 2023 return.
der a final decree by the last day of the year, even if you aren't divorced or legally separated.
you are considered unmarried for the whole Divorced persons. If you are divorced under a
If you qualify to file as head of household in-
year. final decree by the last day of the year, you are
stead of married filing separately, your standard
considered unmarried for the whole year and
Divorce and remarriage. If you obtain a di- deduction will be higher. Also, your tax may be
you can’t choose married filing jointly as your fil-
vorce for the sole purpose of filing tax returns as lower, and you may be able to claim the earned
ing status.
unmarried individuals, and at the time of divorce income credit (EIC). See Head of Household,
you intend to and do, in fact, remarry each other later.
in the next tax year, you and your spouse must Filing a Joint Return
file as married individuals in both years. Single Both you and your spouse must include all of
Annulled marriages. If you obtain a court your income and deductions on your joint re-
decree of annulment, which holds that no valid Your filing status is single if you are considered turn.
marriage ever existed, you are considered un- unmarried and you don’t qualify for another fil-
married even if you filed joint returns for earlier ing status. To determine your marital status, see Accounting period. Both of you must use the
years. File Form 1040-X, Amended U.S. Individ- Marital Status, earlier. same accounting period, but you can use differ-
ual Income Tax Return, claiming single or head ent accounting methods. See Accounting Peri-
Spouse died before January 1, 2023. Your ods and Accounting Methods in chapter 1.
of household status for all tax years that are af- filing status may be single if your spouse died
fected by the annulment and not closed by the before January 1, 2023, and you didn't remarry Joint responsibility. Both of you may be held
statute of limitations for filing a tax return. Gen- before the end of 2023. You may, however, be responsible, jointly and individually, for the tax
erally, for a credit or refund, you must file Form able to use another filing status that will give and any interest or penalty due on your joint re-
1040-X within 3 years (including extensions) af- you a lower tax. See Head of Household and turn. This means that if one spouse doesn't pay
ter the date you filed your original return or Qualifying Surviving Spouse, later, to see if you the tax due, the other may have to. Or, if one
within 2 years after the date you paid the tax, qualify. spouse doesn't report the correct tax, both
whichever is later. If you filed your original return spouses may be responsible for any additional
early (for example, March 1), your return is con- How to file. On Form 1040 or 1040-SR, show taxes assessed by the IRS. One spouse may be
sidered filed on the due date (generally April your filing status as single by checking the “Sin- held responsible for all the tax due even if all the
15). However, if you had an extension to file (for gle” box on the Filing Status line near the top of income was earned by the other spouse.
example, until October 15) but you filed earlier the form. Use the Single column of the Tax Ta-
You may want to file separately if:
and we received it on July 1, your return is con- ble, or Section A of the Tax Computation Work-
sidered filed on July 1. sheet, to figure your tax. • You believe your spouse isn't reporting all
of their income, or
Married Filing Jointly
Head of household or qualifying surviv-
ing spouse. If you are considered unmarried, • You don’t want to be responsible for any
you may be able to file as head of household or taxes due if your spouse doesn't have
as qualifying surviving spouse. See Head of You can choose married filing jointly as your fil- enough tax withheld or doesn't pay enough
Household and Qualifying Surviving Spouse, ing status if you are considered married and estimated tax.
later, to see if you qualify. both you and your spouse agree to file a joint re-
Divorced taxpayer. You may be held jointly
turn. On a joint return, you and your spouse re-
Married persons. If you are considered mar- and individually responsible for any tax, interest,
port your combined income and deduct your
ried, you and your spouse can file a joint return and penalties due on a joint return filed before
combined allowable expenses. You can file a
or separate returns. your divorce. This responsibility may apply even
joint return even if one of you had no income or
if your divorce decree states that your former
Considered married. You are considered deductions.
married for the whole year if, on the last day of
22 Chapter 2 Filing Status Publication 17 (2023)

spouse will be responsible for any amounts due
on previously filed joint returns.
spouse. You can use a POA that states that you
have been granted authority to sign the return,
Special Rules
or you can use Form 2848. Part I of Form 2848 If you choose married filing separately as your
Relief from joint responsibility. In some
must state that you are granted authority to sign filing status, the following special rules apply.
cases, one spouse may be relieved of joint re-
the return. Because of these special rules, you usually pay
sponsibility for tax, interest, and penalties on a
more tax on a separate return than if you use
joint return for items of the other spouse that Nonresident alien or dual-status alien. Gen-
another filing status you qualify for.
were incorrectly reported on the joint return. You erally, a married couple can’t file a joint return if
can ask for relief no matter how small the liabil- either one is a nonresident alien at any time dur- 1. Your tax rate is generally higher than on a
ity. ing the tax year. However, if one spouse was a joint return.
There are three types of relief available. nonresident alien or dual-status alien who was
married to a U.S. citizen or resident alien at the 2. Your exemption amount for figuring the al-
1. Innocent spouse relief. ternative minimum tax is half that allowed
end of the year, the spouses can choose to file
2. Separation of liability (available only to a joint return. If you do file a joint return, you and on a joint return.
joint filers whose spouse has died, or who your spouse are both treated as U.S. residents 3. You can’t take the credit for child and de-
are divorced, legally separated, or haven't for the entire tax year. See chapter 1 of Pub. pendent care expenses in most cases,
lived together for the 12 months ending on 519. and the amount you can exclude from in-
the date the election for this relief is filed). come under an employer's dependent
3. Equitable relief. Married Filing care assistance program is limited to
$2,500 (instead of $5,000 on a joint re-
You must file Form 8857, Request for Inno- Separately turn). However, if you are legally separated
cent Spouse Relief, to request relief from joint or living apart from your spouse, you may
responsibility. Pub. 971 explains these kinds of You can choose married filing separately as be able to file a separate return and still
relief and who may qualify for them. your filing status if you are married. This filing take the credit. For more information about
status may benefit you if you want to be respon- these expenses, the credit, and the exclu-
Signing a joint return. For a return to be con-
sible only for your own tax or if it results in less sion, see What’s Your Filing Status? in
sidered a joint return, both spouses must gener-
tax than filing a joint return. Pub. 503.
ally sign the return.
If you and your spouse don’t agree to file a 4. You can’t take the EIC, unless you have a
Spouse died before signing. If your
joint return, you must use this filing status un- qualifying child and meet certain other re-
spouse died before signing the return, the exec-
less you qualify for head of household status, quirements. See Pub. 596.
utor or administrator must sign the return for
your spouse. If neither you nor anyone else has discussed later. 5. You can’t take the exclusion or credit for
yet been appointed as executor or administra- adoption expenses in most cases.
tor, you can sign the return for your spouse and You may be able to choose head of house-
hold filing status if you are considered unmar- 6. You can’t take the education credits (the
enter “Filing as surviving spouse” in the area
ried because you live apart from your spouse American opportunity credit and lifetime
where you sign the return.
and meet certain tests (explained under Head learning credit), or the deduction for stu-
Spouse away from home. If your spouse is of Household, later). This can apply to you even dent loan interest.
away from home, you should prepare the return, if you aren't divorced or legally separated. If you 7. You can’t exclude any interest income from
sign it, and send it to your spouse to sign so that qualify to file as head of household, instead of qualified U.S. savings bonds you used for
it can be filed on time. as married filing separately, your tax may be higher education expenses.
Injury or disease prevents signing. If your lower, you may be able to claim the EIC and
certain other benefits, and your standard de- 8. If you lived with your spouse at any time
spouse can’t sign because of disease or injury
duction will be higher. The head of household during the tax year:
and tells you to sign for them, you can sign your
spouse’s name in the proper space on the re- filing status allows you to choose the standard a. You can’t claim the credit for the eld-
turn followed by the words “By (your name), deduction even if your spouse chooses to item- erly or the disabled, and
Spouse.” Be sure to sign in the space provided ize deductions. See Head of Household, later,
for more information. b. You must include in income a greater
for your signature. Attach a dated statement,
percentage (up to 85%) of any social
signed by you, to the return. The statement You will generally pay more combined security or equivalent railroad retire-
should include the form number of the return TIP tax on separate returns than you would ment benefits you received.
you are filing, the tax year, and the reason your on a joint return for the reasons listed
spouse can’t sign; it should also state that your under Special Rules, later. However, unless you 9. The following credits and deductions are
spouse has agreed to your signing for them. are required to file separately, you should figure reduced at income levels half of those for
your tax both ways (on a joint return and on sep- a joint return.
Signing as guardian of spouse. If you are
the guardian of your spouse who is mentally in- arate returns). This way, you can make sure you a. The child tax credit and the credit for
competent, you can sign the return for your are using the filing status that results in the low- other dependents.
spouse as guardian. est combined tax. When figuring the combined
tax of a married couple, you may want to con- b. The retirement savings contributions
Spouse in combat zone. You can sign a sider state taxes as well as federal taxes. credit.
joint return for your spouse if your spouse can’t 10. Your capital loss deduction limit is $1,500
sign because they are serving in a combat zone How to file. If you file a separate return, you (instead of $3,000 on a joint return).
(such as the Persian Gulf Area, Serbia, Monte- generally report only your own income, credits,
negro, Albania, or Afghanistan), even if you and deductions. 11. If your spouse itemizes deductions, you
don’t have a power of attorney or other state- Select this filing status by checking the can’t claim the standard deduction. If you
ment. Attach a signed statement to your return “Married filing separately” box on the Filing Sta- can claim the standard deduction, your ba-
explaining that your spouse is serving in a com- tus line near the top of Form 1040 or 1040-SR. sic standard deduction is half of the
bat zone. For more information on special tax Enter your spouse's full name and SSN or ITIN amount allowed on a joint return.
rules for persons who are serving in a combat in the entry space at the bottom of the Filing Adjusted gross income (AGI) limits. If your
zone, or who are in missing status as a result of Status section. If your spouse doesn't have and AGI on a separate return is lower than it would
serving in a combat zone, see Pub. 3. isn't required to have an SSN or ITIN, enter have been on a joint return, you may be able to
Power of attorney. In order for you to sign a “NRA” in the space for your spouse's SSN. Use deduct a larger amount for certain deductions
return for your spouse in any of these cases, the Married filing separately column of the Tax that are limited by AGI, such as medical expen-
you must attach to the return a power of attor- Table, or Section C of the Tax Computation ses.
ney (POA) that authorizes you to sign for your Worksheet, to figure your tax.

Individual retirement arrangements (IRAs). 2. You paid more than half of the cost of not for other purposes, such as claiming the
You may not be able to deduct all or part of your keeping up a home for the year. EIC. Different tests apply depending on the tax
contributions to a traditional IRA if you or your benefit you claim.
3. A qualifying person lived with you in the
spouse was covered by an employee retirement
home for more than half the year (except If you were considered married for part
plan at work during the year. Your deduction is
for temporary absences, such as school). ! of the year and lived in a community
reduced or eliminated if your income is more
However, if the qualifying person is your CAUTION property state (listed earlier under Mar-
than a certain amount. This amount is much
dependent parent, your dependent parent ried Filing Separately), special rules may apply
lower for married individuals who file separately
doesn't have to live with you. See Special in determining your income and expenses. See
and lived together at any time during the year.
rule for parent, later, under Qualifying Per- Pub. 555 for more information.
For more information, see How Much Can You
son.
Deduct in chapter 9.
Nonresident alien spouse. You are consid-
If you qualify to file as head of house- ered unmarried for head of household purposes
Rental activity losses. If you actively partici-
pated in a passive rental real estate activity that TIP hold, your tax rate will usually be lower if your spouse was a nonresident alien at any
than the rates for single or married fil- time during the year and you don’t choose to
produced a loss, you can generally deduct the
ing separately. You will also receive a higher treat your nonresident spouse as a resident
loss from your nonpassive income, up to
standard deduction than if you file as single or alien. However, your spouse isn't a qualifying
$25,000. This is called a special allowance.
married filing separately. person for head of household purposes. You
However, married persons filing separate re-
turns who lived together at any time during the must have another qualifying person and meet
How to file. Indicate your choice of this filing
year can’t claim this special allowance. Married the other tests to be eligible to file as head of
status by checking the “Head of household” box
persons filing separate returns who lived apart household.
on the Filing Status line near the top of Form
at all times during the year are each allowed a
1040 or 1040-SR. If the child who qualifies you Choice to treat spouse as resident. You
$12,500 maximum special allowance for losses
for this filing status isn't claimed as your de- are considered married if you choose to treat
from passive real estate activities. See Rental
pendent in the Dependents section of Form your spouse as a resident alien. See chapter 1
Activities in Pub. 925 for more information.
1040 or 1040-SR, enter the child's name in the of Pub. 519.
Community property states. If you live in a entry space at the bottom of the Filing Status
community property state and file separately, section. Use the Head of a household column
your income may be considered separate in- of the Tax Table, or Section D of the Worksheet, Keeping Up a Home
come or community income for income tax pur- to figure your tax.
poses. Community property states include Ari- To qualify for head of household status, you
zona, California, Idaho, Louisiana, Nevada, New must pay more than half of the cost of keeping
Mexico, Texas, Washington, and Wisconsin. Considered Unmarried up a home for the year. You can determine
See Pub. 555 for more information. whether you paid more than half of the cost of
To qualify for head of household status, you
keeping up a home by using Worksheet 2-1.
must be either unmarried or considered unmar-
Joint Return After ried on the last day of the year. You are consid- Costs you include. Include in the cost of
Separate Returns ered unmarried on the last day of the tax year if keeping up a home expenses, such as rent,
you meet all of the following tests. mortgage interest, real estate taxes, insurance
You can change your filing status from a sepa-
on the home, repairs, utilities, and food eaten in
rate return to a joint return by filing an amended 1. You file a separate return. A separate re-
the home.
return using Form 1040-X. turn includes a return claiming married fil-
You can generally change to a joint return ing separately, single, or head of house- Costs you don’t include. Don’t include the
any time within 3 years from the due date of the hold filing status. costs of clothing, education, medical treatment,
separate return or returns. This doesn't include vacations, life insurance, or transportation. Also
2. You paid more than half of the cost of
any extensions. A separate return includes a re- don’t include the value of your services or those
keeping up your home for the tax year.
turn filed by you or your spouse claiming mar- of a member of your household.
ried filing separately, single, or head of house- 3. Your spouse didn't live in your home during
the last 6 months of the tax year. Your
hold filing status.
spouse is considered to live in your home Qualifying Person
even if your spouse is temporarily absent
Separate Returns After due to special circumstances. See Tempo- See Table 2-1 to see who is a qualifying person.
Joint Return rary absences under Qualifying Person, Any person not described in Table 2-1 isn't a
Once you file a joint return, you can’t choose to later. qualifying person.
file separate returns for that year after the due 4. Your home was the main home of your Example 1—Child. Your unmarried child
date of the return. child, stepchild, or foster child for more lived with you all year and was 18 years old at
Exception. A personal representative for a de- than half the year. (See Home of qualifying the end of the year. Your child didn't provide
cedent can change from a joint return elected person under Qualifying Person, later, for more than half of their own support and doesn't
by the surviving spouse to a separate return for rules applying to a child's birth, death, or meet the tests to be a qualifying child of anyone
the decedent. The personal representative has temporary absence during the year.) else. As a result, this child is your qualifying
1 year from the due date (including extensions) 5. You must be able to claim the child as a child (see Qualifying Child in chapter 3) and,
of the return to make the change. See Pub. 559 dependent. However, you meet this test if because this child is single, this is your qualify-
for more information on filing a return for a dece- you can’t claim the child as a dependent ing person for head of household purposes.
dent. only because the noncustodial parent can
claim the child using the rules described in Example 2—Child who isn't qualifying
Head of Household Children of divorced or separated parents person. The facts are the same as in Exam-
ple 1, except your child was 25 years old at the
(or parents who live apart) under Qualify-
ing Child in chapter 3, or referred to in end of the year and your child’s gross income
You may be able to file as head of household if
Support Test for Children of Divorced or was $5,000. Because your child doesn't meet
you meet all of the following requirements.
Separated Parents (or Parents Who Live the age test (explained under Qualifying Child in
1. You are unmarried or considered unmar- chapter 3), your child isn't your qualifying child.
Apart) under Qualifying Relative in chap-
ried on the last day of the year. See Marital Because the child doesn't meet the gross in-
ter 3. The general rules for claiming a child
Status, earlier, and Considered Unmar- come test (explained under Qualifying Relative
as a dependent are explained in chapter 3.
ried, later. in chapter 3), the child isn't your qualifying rela-
You may be considered unmarried for the tive. As a result, this child isn't your qualifying
purpose of using head of household status but person for head of household purposes.
24 Chapter 2 Filing Status Publication 17 (2023)

Worksheet 2-1. Cost of Keeping in the entry space at the bottom of the Filing
Status section. Use the Married filing jointly col-
Up a Home Keep for Your Records umn of the Tax Table, or Section B of the Tax
Computation Worksheet, to figure your tax.
Amount Eligibility rules. You are eligible to file your
You Paid Total Cost 2023 return as a qualifying surviving spouse if
you meet all of the following tests.
Property taxes $ $
Mortgage interest expense • You were entitled to file a joint return with
your spouse for the year your spouse died.
Rent It doesn't matter whether you actually filed
a joint return.
Utility charges
Repairs/Maintenance • Your spouse died in 2021 or 2022 and you
didn't remarry before the end of 2023.
Property insurance • You have a child or stepchild (not a foster
Food eaten in the home child) whom you can claim as a dependent
or could claim as a dependent except that,
Other household expenses for 2023:
Totals $ $ a. The child had gross income of
Minus total amount you paid ( ) $4,700 or more,
Amount others paid $ b. The child filed a joint return, or
c. You could be claimed as a depend-
If the total amount you paid is more than the amount others paid, you meet the ent on someone else’s return.
requirement of paying more than half of the cost of keeping up the home.
If the child isn't claimed as your de-
Example 3—Friend. Your friend lived with even if one or both of you are temporarily ab- pendent in the Dependents section on
you all year. Even though your friend may be sent from your home due to special circumstan- Form 1040 or 1040-SR, enter the child's
your qualifying relative if the gross income and ces, such as illness, education, business, vaca- name in the entry space at the bottom of
support tests (explained in chapter 3) are met, tion, military service, or detention in a juvenile the Filing Status section. If you don’t enter
your friend isn't your qualifying person for head facility. It must be reasonable to assume the ab- the name, it will take us longer to process
of household purposes because your friend isn't sent person will return to the home after the your return.
related to you in one of the ways listed under temporary absence. You must continue to keep • This child lived in your home all year, ex-
Relatives who don’t have to live with you in up the home during the absence. cept for temporary absences. See Tempo-
chapter 3. See Table 2-1. rary absences, earlier, under Head of
Adopted child or foster child. You may be
eligible to file as head of household if the per- Household. There are also exceptions, de-
Example 4—Friend's child. The facts are scribed later, for a child who was born or
son who qualifies you for this filing status was
the same as in Example 3, except your friend's died during the year and for a kidnapped
an adopted child or foster child. For more infor-
10-year-old child also lived with you all year. child.
mation, see Pub. 501.
Your friend’s child isn't your qualifying child and,
because the child is your friend's qualifying Kidnapped child. You may be eligible to file
• You paid more than half of the cost of
child, your friend’s child isn't your qualifying rel- keeping up a home for the year. See Keep-
as head of household even if the child who is
ative (see Not a Qualifying Child Test in chap- ing Up a Home, earlier, under Head of
your qualifying person has been kidnapped. For
ter 3). As a result, your friend’s child isn't your Household.
more information, see Pub. 501.
qualifying person for head of household purpo-
Example. Your spouse died in 2021 and
ses.
Qualifying Surviving you haven’t remarried. During 2022 and 2023
Home of qualifying person. Generally, the
qualifying person must live with you for more Spouse you continued to keep up a home for you and
your child who lives with you and whom you can
than half the year. claim as a dependent. For 2021, you were enti-
If your spouse died in 2023, you can use mar- tled to file a joint return for you and your de-
Special rule for parent. If your qualifying ried filing jointly as your filing status for 2023 if ceased spouse. For 2022 and 2023, you can file
person is your parent, you may be eligible to file you otherwise qualify to use that status. The as qualifying surviving spouse. After 2023, you
as head of household even if your parent year of death is the last year for which you can can file as head of household if you qualify.
doesn't live with you. However, you must be file jointly with your deceased spouse. See Mar-
able to claim your parent as a dependent. Also, ried Filing Jointly, earlier. Death or birth. You may be eligible to file as a
you must pay more than half of the cost of keep- qualifying surviving spouse if the child who
You may be eligible to use qualifying surviv- qualifies you for this filing status is born or dies
ing up a home that was the main home for the
ing spouse as your filing status for 2 years fol- during the year. You must have provided more
entire year for your parent.
lowing the year your spouse died. For example, than half of the cost of keeping up a home that
If you pay more than half of the cost of keep-
if your spouse died in 2022, and you haven't re- was the child's main home during the entire part
ing your parent in a rest home or home for the
married, you may be able to use this filing status of the year the child was alive.
elderly, that counts as paying more than half of
for 2023 and 2024.
the cost of keeping up your parent's main home. Adopted child. You may be eligible to file as a
This filing status entitles you to use joint re- qualifying surviving spouse if the child who
Death or birth. You may be eligible to file as turn tax rates and the highest standard deduc- qualifies you for this filing status you adopted in
head of household even if the individual who tion amount (if you don’t itemize deductions). It 2023 or was lawfully placed with you for legal
qualifies you for this filing status is born or dies doesn't entitle you to file a joint return. adoption by you in 2023. The child is consid-
during the year. If the individual is your qualify-
How to file. Indicate your choice of this filing ered to have lived with you for all of 2023 if your
ing child, the child must have lived with you for
status by checking the “Qualifying surviving main home was this child’s main home for the
more than half the part of the year the child was
spouse” box on the Filing Status line near the entire time since this child was adopted or
alive. If the individual is anyone else, see Pub.
top of Form 1040 or 1040-SR. If the child who placed with you in 2023.
501 for more information.
qualifies you for this filing status isn’t claimed as Kidnapped child. You may be eligible to file as
Temporary absences. You and your quali- your dependent in the Dependents section of a qualifying surviving spouse even if the child
fying person are considered to live together Form 1040 or 1040-SR, enter the child’s name

Table 2-1. Who Is a Qualifying Person Qualifying You To File as Head of Household?1
Caution. See the text of this chapter for the other requirements you must meet to claim head of household
filing status.
IF the person is your . . . AND . . . THEN that person is . . .

qualifying child (such as a son, the child is single a qualifying person, whether or
daughter, or grandchild who lived with not the child meets the Citizen or
you more than half the year and meets Resident Test in chapter 3.
certain other tests)2
the child is married and you can claim the a qualifying person.
child as a dependent
the child is married and you can’t claim the not a qualifying person.3
child as a dependent
qualifying relative4 who is your father or you can claim your parent as a dependent5 a qualifying person.6
mother
you can’t claim your parent as a dependent not a qualifying person.
qualifying relative other than your father
4
your relative lived with you more than half a qualifying person.
or mother (such as a grandparent, the year, and your relative is related to you in
brother, or sister who meets certain one of the ways listed under Relatives who
tests) don’t have to live with you in chapter 3 and
you can claim your relative as a dependent5
your relative didn't live with you more than not a qualifying person.
half the year
your relative isn't related to you in one of the not a qualifying person.
ways listed under Relatives who don’t have
to live with you in chapter 3 and is your
qualifying relative only because your relative
lived with you all year as a member of your
household
you can’t claim your relative as a dependent not a qualifying person.
1
A person can’t qualify more than one taxpayer to use the head of household filing status for the year.
2
The term “qualifying child” is defined in chapter 3. Note. If you are a noncustodial parent, the term “qualifying child” for head of household filing status doesn't include a child who is your
qualifying child only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. If you are the
custodial parent and those rules apply, the child is generally your qualifying child for head of household filing status even though the child isn't a qualifying child you can claim as a
dependent.
3
This person is a qualifying person if the only reason you can’t claim the person as a dependent is that you, or your spouse if filing jointly, can be claimed as a dependent on another
taxpayer’s return.
4
The term “qualifying relative” is defined in chapter 3.
5
If you can claim a person as a dependent only because of a multiple support agreement, that person isn't a qualifying person. See Multiple Support Agreement in chapter 3.
6
See Special rule for parent under Qualifying Person, earlier.
who qualifies you for this filing status has been Useful Items
kidnapped. See Pub. 501 for more information. You may want to see:
As mentioned earlier, the filing status
qualifying surviving spouse is available
3. Publication
!
CAUTION for only 2 years following the year your
501 Dependents, Standard Deduction,
spouse died.
Dependents
501
and Filing Information

503
Introduction 526 Charitable Contributions

526
This chapter discusses the following topics. Form (and Instructions)
• Dependents—You can generally claim 2120 Multiple Support Declaration

2120
your qualifying child or qualifying relative

as a dependent. 8332 Release/Revocation of Release of
8332
Claim to Exemption for Child by

• Social security number (SSN) requirement Custodial Parent
for dependents—You must list the SSN of
Dependents
any person you claim as a dependent.
How to claim dependents. On page 1 of your
Form 1040 or 1040-SR, enter the names of your The term “dependent” means:
dependents in the Dependents section.
• A qualifying child, or
26 Chapter 3 Dependents Publication 17 (2023)
Table 3-1. Overview of the Rules for Claiming a Dependent
Caution. This table is only an overview of the rules. For details, see the rest of this chapter.
• You can’t claim any dependents if you (or your spouse if filing jointly) could be claimed as a dependent by another taxpayer,
unless that taxpayer files a return only to claim a refund of withheld income tax or estimated tax paid.
• You can’t claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of
withheld income tax or estimated tax paid.
• You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of
Canada or Mexico.1
• You can’t claim a person as a dependent unless that person is your qualifying child or qualifying relative.
Tests To Be a Qualifying Child Tests To Be a Qualifying Relative

1. The child must be your son, daughter, stepchild, foster child, 1. The person can’t be your qualifying child or the
brother, sister, half brother, half sister, stepbrother, stepsister, qualifying child of any other taxpayer.
or a descendant of any of them.
2. The person either (a) must be related to you in one of
2. The child must be (a) under age 19 at the end of the year and the ways listed under Relatives who don’t have to live
younger than you (or your spouse if filing jointly); (b) under age with you, or (b) must live with you all year as a member
24 at the end of the year, a student, and younger than you (or of your household2 (and your relationship must not
your spouse if filing jointly); or (c) any age if permanently and violate local law).
totally disabled.
3. The person's gross income for the year must be less
3. The child must have lived with you for more than half of the than $4,700.3
year.2
4. You must provide more than half of the person's total
4. The child must not have provided more than half of the child’s support for the year.4
own support for the year.
5. The child must not be filing a joint return for the year (unless
that joint return is filed only to get a refund of income tax
withheld or estimated tax paid).
If the child meets the rules to be a qualifying child of more than one
person, generally only one person can actually treat the child as a
qualifying child. See Qualifying Child of More Than One Person,
later, to find out which person is the person entitled to claim the
child as a qualifying child.
1
There is an exception for certain adopted children.
2
There are exceptions for temporary absences, children who were born or died during the year, children who were adopted or lawfully placed for
adoption during the year, children who are eligible foster children placed during the year, children of divorced or separated parents (or parents who
live apart), and kidnapped children.
3
There is an exception if the person is disabled and has income from a sheltered workshop.
4
There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped
children.
• A qualifying relative. that child as a dependent. For more information, 1. Dependent taxpayer test.
see chapter 14.
2. Joint return test.
The terms “qualifying child” and “qualifying
relative” are defined later. Credit for other dependents. You may be en-
3. Citizen or resident test.
titled to a credit for other dependents for each
All the requirements for claiming a depend- qualifying child who does not qualify you for the These three tests are explained in detail
ent are summarized in Table 3-1. child tax credit and for each qualifying relative. here.
For more information, see chapter 14.
Housekeepers, maids, or servants. If these
people work for you, you can’t claim them as Dependent Taxpayer Test
dependents. Exceptions If you can be claimed as a dependent by an-
other taxpayer, you can’t claim anyone else as a
Child tax credit. You may be entitled to a child Even if you have a qualifying child or qualifying
dependent. Even if you have a qualifying child
tax credit for each qualifying child who was un- relative, you can claim that person as a depend-
der age 17 at the end of the year if you claimed ent only if these three tests are met.
Publication 17 (2023) Chapter 3 Dependents 27

or qualifying relative, you can’t claim that person and the child lived with you for the rest of the Age Test
as a dependent. year after placement.
To meet this test, a child must be:
If you are filing a joint return and your Child's place of residence. Children are usu- • Under age 19 at the end of the year and
spouse can be claimed as a dependent by an- ally citizens or residents of the country of their younger than you (or your spouse if filing
other taxpayer, you and your spouse can’t claim parents. jointly);
any dependents on your joint return.
If you were a U.S. citizen when your child
Exception. If you can be claimed as a depend- was born, the child may be a U.S. citizen and • A student under age 24 at the end of the
ent by another taxpayer, you can claim some- meet this test even if the other parent was a year and younger than you (or your spouse
one else as a dependent if the person who can nonresident alien and the child was born in a if filing jointly); or
claim you (or your spouse if filing a joint return) foreign country. • Permanently and totally disabled at any
as a dependent files a return only to claim a re- time during the year, regardless of age.
Foreign students' place of residence. For-
fund of income tax withheld or estimated.
eign students brought to this country under a
Example. Your child turned 19 on Decem-
qualified international education exchange pro-
Joint Return Test ber 10. Unless this child was permanently and
gram and placed in American homes for a tem-
totally disabled or a student, this child doesn't
You generally can’t claim a married person as a porary period generally aren't U.S. residents
meet the age test because, at the end of the
dependent if that person files a joint return. and don’t meet this test. You can’t claim them
year, this child wasn't under age 19.
as dependents. However, if you provided a
Exception. You can claim a person as a de- home for a foreign student, you may be able to Child must be younger than you or spouse.
pendent who files a joint return if that person take a charitable contribution deduction. See To be your qualifying child, a child who isn't per-
and that person’s spouse file the joint return Expenses Paid for Student Living With You in manently and totally disabled must be younger
only to claim a refund of income tax withheld or Pub. 526. than you. However, if you are married filing
estimated tax paid. jointly, the child must be younger than you or
U.S. national. A U.S. national is an individual
your spouse but doesn't have to be younger
Example 1—Child files joint return. You who, although not a U.S. citizen, owes their alle-
than both of you.
supported your 18-year-old child who lived with giance to the United States. U.S. nationals in-
you all year while your child’s spouse was in the clude American Samoans and Northern Ma-
Example 1—Child not younger than you
Armed Forces. Your child’s spouse earned riana Islanders who chose to become U.S.
or spouse. Your 23-year-old sibling, who is a
$35,000 for the year. The couple files a joint re- nationals instead of U.S. citizens.
student and unmarried, lives with you and your
turn. You can’t claim your child as a dependent. spouse, who provide more than half of your sib-
Example 2—Child files joint return only
Qualifying Child ling’s support. Your sibling isn't disabled. Both
you and your spouse are 21 years old, and you
as claim for refund of withheld tax. Your Five tests must be met for a child to be your file a joint return. Your sibling isn't your qualify-
18-year-old child and your child’s 17-year-old qualifying child. The five tests are: ing child because your sibling isn't younger than
spouse had $800 of wages from part-time jobs you or your spouse.
and no other income. They lived with you all 1. Relationship,
year. Neither is required to file a tax return. They 2. Age, Example 2—Child younger than your
don’t have a child. Taxes were taken out of their spouse but not younger than you. The facts
pay, so they filed a joint return only to get a re- 3. Residency,
are the same as in Example 1, except your
fund of the withheld taxes. The exception to the 4. Support, and spouse is 25 years old. Because your sibling is
joint return test applies, so you aren't disquali- younger than your spouse, and you and your
fied from claiming each of them as a dependent 5. Joint return.
spouse are filing a joint return, your sibling is
just because they file a joint return. You can your qualifying child, even though your sibling
These tests are explained next.
claim each of them as a dependent if all the isn't younger than you.
other tests to do so are met. If a child meets the five tests to be the
qualifying child of more than one per- Student defined. To qualify as a student, your
Example 3—Child files joint return to
!
CAUTION son, there are rules you must use to child must be, during some part of each of any 5
claim American opportunity credit. The determine which person can actually treat the calendar months of the year:
facts are the same as in Example 2, except no child as a qualifying child. See Qualifying Child 1. A full-time student at a school that has a
taxes were taken out of your child’s pay or your of More Than One Person, later. regular teaching staff and course of study,
child’s spouse’s pay. However, they file a joint and a regularly enrolled student body at
return to claim an American opportunity credit the school; or
of $124 and get a refund of that amount. Be- Relationship Test
cause they filed a joint return claiming the To meet this test, a child must be: 2. A student taking a full-time, on-farm train-
American opportunity credit, they aren't filing it ing course given by a school described in
only to get a refund of income tax withheld or • Your son, daughter, stepchild, or foster (1), or by a state, county, or local govern-
child, or a descendant (for example, your ment agency.
estimated tax paid. The exception to the joint re-
grandchild) of any of them; or
turn test doesn't apply, so you can’t claim either
The 5 calendar months don’t have to be con-
of them as a dependent. • Your brother, sister, half brother, half sister, secutive.
stepbrother, or stepsister, or a descendant
Citizen or Resident Test (for example, your niece or nephew) of any Full-time student. A full-time student is a
of them. student who is enrolled for the number of hours
You generally can’t claim a person as a depend-
Adopted child. An adopted child is always or courses the school considers to be full-time
ent unless that person is a U.S. citizen, U.S. res-
treated as your own child. The term “adopted attendance.
ident alien, U.S. national, or a resident of Can-
ada or Mexico. However, there is an exception child” includes a child who was lawfully placed
School defined. A school can be an ele-
for certain adopted children, as explained next. with you for legal adoption.
mentary school; a junior or senior high school; a
Exception for adopted child. If you are a U.S. Foster child. A foster child is an individual who college; a university; or a technical, trade, or
citizen or U.S. national who has legally adopted is placed with you by an authorized placement mechanical school. However, an on-the-job
a child who isn't a U.S. citizen, U.S. resident agency or by judgment, decree, or other order training course, correspondence school, or
alien, or U.S. national, this test is met if the child of any court of competent jurisdiction. school offering courses only through the Inter-
lived with you as a member of your household net doesn’t count as a school.
all year. This exception also applies if the child
Vocational high school students. Stu-
was lawfully placed with you for legal adoption
dents who work on “co-op” jobs in private

industry as a part of a school's regular course of Children of divorced or separated parents another taxpayer, if eligible, can claim the child
classroom and practical training are considered (or parents who live apart). In most cases, for the earned income credit.
full-time students. because of the residency test, a child of di-
vorced or separated parents is the qualifying Custodial parent and noncustodial pa-
Permanently and totally disabled. Your child rent. The custodial parent is the parent with
child of the custodial parent. However, the child
is permanently and totally disabled if both of the whom the child lived for the greater number of
will be treated as the qualifying child of the non-
following apply. nights during the year. The other parent is the
custodial parent if all four of the following state-
• Your child can’t engage in any substantial ments are true. noncustodial parent.
gainful activity because of a physical or If the parents divorced or separated during
1. The parents: the year and the child lived with both parents
mental condition.
a. Are divorced or legally separated un- before the separation, the custodial parent is
• A doctor determines the condition has las- the one with whom the child lived for the greater
ted or can be expected to last continuously der a decree of divorce or separate
maintenance; number of nights during the rest of the year.
for at least a year or can lead to death. A child is treated as living with a parent for a
b. Are separated under a written separa- night if the child sleeps:
Residency Test tion agreement; or
• At that parent's home, whether or not the
To meet this test, your child must have lived with c. Lived apart at all times during the last parent is present; or
you for more than half the year. There are ex- 6 months of the year, whether or not
• In the company of the parent, when the
ceptions for temporary absences, children who they are or were married.
child doesn't sleep at a parent's home (for
were born or died during the year, adopted or example, the parent and child are on vaca-
2. The child received over half of the child’s
foster children, kidnapped children, and chil- tion together).
support for the year from the parents.
dren of divorced or separated parents.
3. The child is in the custody of one or both Equal number of nights. If the child lived
Temporary absences. Your child is consid-
parents for more than half of the year. with each parent for an equal number of nights
ered to have lived with you during periods of
during the year, the custodial parent is the pa-
time when one of you, or both, is temporarily 4. Either of the following statements is true.
rent with the higher AGI.
absent due to special circumstances such as:
a. The custodial parent signs a written
• Illness, declaration, discussed later, that they December 31. The night of December 31 is
won't claim the child as a dependent treated as part of the year in which the night be-
• Education, gins. For example, the night of December 31,
for the year, and the noncustodial pa-
• Business, rent attaches this written declaration 2023, is treated as part of 2023.
• Vacation, to their return. (If the decree or agree- Emancipated child. If a child is emancipa-
ment went into effect after 1984 and ted under state law, the child is treated as not
• Military service, or before 2009, see Post-1984 and living with either parent. See Examples 5 and 6.
• Detention in a juvenile facility. pre-2009 divorce decree or separa-
tion agreement, later. If the decree or Absences. If a child wasn't with either pa-
Death or birth of child. A child who was born agreement went into effect after 2008, rent on a particular night (because, for example,
or died during the year is treated as having lived see Post-2008 divorce decree or sep- the child was staying at a friend's house), the
with you more than half of the year if your home aration agreement, later.) child is treated as living with the parent with
was the child's home more than half of the time whom the child normally would have lived for
the child was alive during the year. The same is b. A pre-1985 decree of divorce or sepa- that night, except for the absence. But if it can’t
true if the child lived with you more than half the rate maintenance or written separa- be determined with which parent the child nor-
year except for any required hospital stay follow- tion agreement that applies to 2023 mally would have lived or if the child wouldn’t
ing birth. states that the noncustodial parent have lived with either parent that night, the child
can claim the child as a dependent, is treated as not living with either parent that
Child born alive. You may be able to claim the decree or agreement wasn't night.
as a dependent a child born alive during the changed after 1984 to say the non-
year, even if the child lived only for a moment. custodial parent can’t claim the child Parent works at night. If, due to a parent's
State or local law must treat the child as having as a dependent, and the noncustodial nighttime work schedule, a child lives for a
been born alive. There must be proof of a live parent provides at least $600 for the greater number of days, but not nights, with the
birth shown by an official document, such as a child's support during the year. parent who works at night, that parent is treated
birth certificate. The child must be your qualify- as the custodial parent. On a school day, the
If statements (1) through (4) are all true, only child is treated as living at the primary resi-
ing child or qualifying relative, and all the other
the noncustodial parent can: dence registered with the school.
tests to claim the child as a dependent must be
met. • Claim the child as a dependent; and
Example 1—Child lived with one parent
• Claim the child as a qualifying child for the for a greater number of nights. You and your
Stillborn child. You can’t claim a stillborn child tax credit, the credit for other depend-
child as a dependent. child’s other parent are divorced. In 2023, your
ents, or the additional child tax credit.
child lived with you 210 nights and with the
Adopted or foster child. You can treat your However, this doesn’t allow the noncustodial other parent 155 nights. You are the custodial
adopted child or foster child as meeting the res- parent to claim head of household filing status, parent.
idency test as follows if you adopted the child in the credit for child and dependent care expen-
2023, the child was lawfully placed with you for ses, the exclusion for dependent care benefits, Example 2—Child is away at camp. In
legal adoption by you in 2023, or the child was or the earned income credit. See Applying the 2023, your child lives with each parent for alter-
an eligible foster child placed with you during tiebreaker rules to divorced or separated pa- nate weeks. In the summer, your child spends 6
2023. This child is considered to have lived with rents (or parents who live apart), later. weeks at summer camp. During those 6 weeks,
you for more than half of 2023 if your main your child is treated as living with you for 3
home was this child’s main home for more than Example—Earned income credit. Even if weeks and with your child’s other parent, your
half the time since this child was adopted or statements (1) through (4) are all true and the ex-spouse, for 3 weeks because this is how
placed with you in 2023. custodial parent signs Form 8332 or a substan- long the child would have lived with each parent
Kidnapped child. You may be able to treat tially similar statement that the custodial parent if the child had not attended summer camp.
your child as meeting the residency test even if won’t claim the child as a dependent for 2023,
the child has been kidnapped. See Pub. 501 for this doesn’t allow the noncustodial parent to Example 3—Child lived same number of
details. claim the child as a qualifying child for the nights with each parent. Your child lived with
earned income credit. The custodial parent or you 180 nights during the year and lived the

same number of nights with the child’s other pa- The noncustodial parent must attach all of child from a child placement agency are consid-
rent, your ex-spouse. Your AGI is $40,000. Your the following pages of the decree or agreement ered support provided by the agency. Similarly,
ex-spouse's AGI is $25,000. You are treated as to their tax return. payments you receive for the support of a foster
your child's custodial parent because you have child from a state or county are considered sup-
• The cover page (write the other parent's
the higher AGI. port provided by the state or county.
SSN on this page).
If you aren't in the trade or business of pro-
Example 4—Child is at parent’s home • The pages that include all of the informa- viding foster care and your unreimbursed
but with other parent. Your child normally tion identified in items (1) through (3) out-of-pocket expenses in caring for a foster
lives with you during the week and with the above. child were mainly to benefit an organization
child’s other parent, your ex-spouse, every other • The signature page with the other parent's qualified to receive deductible charitable contri-
weekend. You become ill and are hospitalized. signature and the date of the agreement. butions, the expenses are deductible as charita-
The other parent lives in your home with your ble contributions but aren't considered support
child for 10 consecutive days while you are in Post-2008 divorce decree or separation you provided. For more information about the
the hospital. Your child is treated as living with agreement. The noncustodial parent can’t at- deduction for charitable contributions, see Pub.
you during this 10-day period because your tach pages from the decree or agreement in- 526. If your unreimbursed expenses aren't de-
child was living in your home. stead of Form 8332 if the decree or agreement ductible as charitable contributions, they may
went into effect after 2008. The custodial parent qualify as support you provided.
Example 5—Child emancipated in May. must sign either Form 8332 or a similar state- If you are in the trade or business of provid-
Your child turned 18 in May 2023 and became ment whose only purpose is to release the cus- ing foster care, your unreimbursed expenses
emancipated under the law of the state where todial parent's claim to an exemption for a child, aren't considered support provided by you.
your child lives. As a result, your child isn't con- and the noncustodial parent must attach a copy
sidered in the custody of either parent for more to their return. The form or statement must re- Example 1. A foster child lived with a mar-
than half of the year. The special rule for chil- lease the custodial parent's claim to the child ried couple, the Smiths, for the last 3 months of
dren of divorced or separated parents doesn't without any conditions. For example, the re- the year. The Smiths cared for the foster child
apply. lease must not depend on the noncustodial pa- because they wanted to adopt the child (al-
rent paying support. though the child had not been placed with them
Example 6—Child emancipated in Au- for adoption). They didn't care for the foster
gust. Your child lives with you from January 1, The noncustodial parent must attach
the required information even if it was child as a trade or business or to benefit the
2023, until May 31, 2023, and lives with the ! filed with a return in an earlier year. agency that placed the foster child in their
child’s other parent, your ex-spouse, from June
CAUTION
home. The Smiths' unreimbursed expenses
1, 2023, through the end of the year. Your child aren't deductible as charitable contributions but
turns 18 and is emancipated under state law on Revocation of release of claim to an ex-
are considered support they provided for the
August 1, 2023. Because your child is treated emption. The custodial parent can revoke a re-
foster child.
as not living with either parent beginning on Au- lease of claim to an exemption. For the revoca-
gust 1, your child is treated as living with you tion to be effective for 2023, the custodial parent
Example 2. You provided $3,000 toward
the greater number of nights in 2023. You are must have given (or made reasonable efforts to
your 10-year-old foster child's support for the
the custodial parent. give) written notice of the revocation to the non-
year. The state government provided $4,000,
custodial parent in 2022 or earlier. The custo-
Written declaration. The custodial parent which is considered support provided by the
dial parent can use Part III of Form 8332 for this
must use either Form 8332 or a similar state- state, not by the child. See Support provided by
purpose and must attach a copy of the revoca-
ment (containing the same information required the state (welfare, food stamps, housing, etc.),
tion to their return for each tax year the custo-
by the form) to make the written declaration to later. Your foster child didn't provide more than
dial parent claims the child as a dependent as a
release a claim to an exemption for a child to half of their own support for the year.
result of the revocation.
the noncustodial parent. Although the exemp- Scholarships. A scholarship received by a
tion amount is zero for tax year 2023, this re- Remarried parent. If you remarry, the sup- child who is a student isn't taken into account in
lease allows the noncustodial parent to claim port provided by your new spouse is treated as determining whether the child provided more
the child tax credit, additional child tax credit, provided by you. than half of their own support.
and credit for other dependents, if applicable,
for the child. The noncustodial parent must at- Parents who never married. This special
tach a copy of the form or statement to their tax rule for divorced or separated parents also ap- Joint Return Test (To Be a
return. plies to parents who never married and who Qualifying Child)
The release can be for 1 year, for a number lived apart at all times during the last 6 months
To meet this test, the child can’t file a joint return
of specified years (for example, alternate of the year.
for the year.
years), or for all future years, as specified in the
declaration. Support Test (To Be a Qualifying Exception. An exception to the joint return test
applies if your child and the child’s spouse file a
Post-1984 and pre-2009 divorce decree Child) joint return only to claim a refund of income tax
or separation agreement. If the divorce de- To meet this test, the child can’t have provided withheld or estimated tax paid.
cree or separation agreement went into effect more than half of the child’s own support for the
after 1984 and before 2009, the noncustodial year. Example 1—Child files joint return. You
parent may be able to attach certain pages from This test is different from the support test to supported your 18-year-old child who lived with
the decree or agreement instead of Form 8332. be a qualifying relative, which is described later. you all year while your child’s spouse was in the
The decree or agreement must state all three of However, to see what is or isn't support, see Armed Forces. Your child’s spouse earned
the following. Support Test (To Be a Qualifying Relative), later. $35,000 for the year. The couple files a joint re-
If you aren't sure whether a child provided more turn so this child isn't your qualifying child.
1. The noncustodial parent can claim the
than half of their own support, you may find
child as a dependent without regard to any
Worksheet 3-1 helpful. Example 2—Child files joint return only
condition, such as payment of support.
as a claim for refund of withheld tax. Your
2. The custodial parent won't claim the child Example. You provided $4,000 toward your 18-year-old child and your child’s 17-year-old
as a dependent for the year. 16-year-old child's support for the year and the spouse had $800 of wages from part-time jobs
child provided $6,000. Your child provided more and no other income. They lived with you all
3. The years for which the noncustodial pa-
than half their own support. The child isn't your year. Neither is required to file a tax return. They
rent, rather than the custodial parent, can
qualifying child. don’t have a child. Taxes were taken out of their
claim the child as a dependent.
pay so they filed a joint return only to get a re-
Foster care payments and expenses. Pay-
fund of the withheld taxes. The exception to the
ments you receive for the support of a foster

Worksheet 3-1. Worksheet for Determining Support Keep for Your Records
Funds Belonging to the Person You Supported

1. Enter the total funds belonging to the person you supported, including income received (taxable
and nontaxable) and amounts borrowed during the year, plus the amount in savings and other
accounts at the beginning of the year. Don’t include funds provided by the state; include those
amounts on line 23 instead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount on line 1 that was used for the person's support . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Enter the amount on line 1 that was used for other purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the total amount in the person's savings and other accounts at the end of the year . . . . . . 4.
5. Add lines 2 through 4. (This amount should equal line 1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
Expenses for Entire Household (where the person you supported lived)
6. Lodging (complete line 6a or 6b):
a. Enter the total rent paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a.
b. Enter the fair rental value of the home. If the person you supported owned the home,
also include this amount in line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b.
7. Enter the total food expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the total amount of utilities (heat, light, water, etc., not included in line 6a or 6b) . . . . . . . . 8.
9. Enter the total amount of repairs (not included in line 6a or 6b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Enter the total of other expenses. Don’t include expenses of maintaining the home, such as
mortgage interest, real estate taxes, and insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Add lines 6a through 10. These are the total household expenses . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter total number of persons who lived in the household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
Expenses for the Person You Supported

13. Divide line 11 by line 12. This is the person's share of the household expenses . . . . . . . . . . . . . 13.
14. Enter the person's total clothing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Enter the person's total education expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Enter the person's total medical and dental expenses not paid for or reimbursed by
insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Enter the person's total travel and recreation expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Enter the total of the person's other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
19. Add lines 13 through 18. This is the total cost of the person's support for the year . . . . . . . . . . . 19.
Did the Person Provide More Than Half of the Person’s Own Support?
20. Multiply line 19 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.
21. Enter the amount from line 2, plus the amount from line 6b if the person you supported owned
the home. This is the amount the person provided for their own support . . . . . . . . . . . . . . . . . . . . 21.
22. Is line 21 more than line 20?
No. You meet the support test for this person to be your qualifying child. If this person also meets the other tests to be a
qualifying child, stop here; don’t complete lines 23–26. Otherwise, go to line 23 and fill out the rest of the worksheet to
determine if this person is your qualifying relative.
Yes. You don’t meet the support test for this person to be either your qualifying child or your qualifying relative. Stop
here.
Did You Provide More Than Half?

23. Enter the amount others provided for the person's support. Include amounts provided by state,
local, and other welfare societies or agencies. Don’t include any amounts included on
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.
24. Add lines 21 and 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.
25. Subtract line 24 from line 19. This is the amount you provided for the person's support . . . . . . . 25.
26. Is line 25 more than line 20?
Yes. You meet the support test for this person to be your qualifying relative.
No. You don’t meet the support test for this person to be your qualifying relative. You can’t claim this person as a
dependent unless you can do so under a multiple support agreement, the support test for children of divorced or
separated parents (or parents who live apart), or the special rule for kidnapped children. See Multiple Support Agreement
or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart), or Kidnapped child under
Qualifying Relative.

joint return test applies, so this child may be whom the child lived for the longer period is higher than yours, you can allow your parent
your qualifying child if all the other tests are met. of time during the year. If the child lived to claim one or more of the children. For exam-
with each parent for the same amount of ple, if you claim one child, your parent can claim
Example 3—Child files joint return to time, the IRS will treat the child as the qual- the other two.
claim American opportunity credit. The ifying child of the parent who had the
facts are the same as in Example 2, except no higher AGI for the year. Example 5—Taxpayer who is a qualify-
taxes were taken out of either spouse’s pay. ing child. The facts are the same as in Exam-
However, they file a joint return to claim an
• If no parent can claim the child as a qualify- ple 1, except you are only 18 years old and
ing child, the child is treated as the qualify-
American opportunity credit of $124 and get a didn't provide more than half of your own sup-
ing child of the person who had the highest
refund of that amount. Because they filed a joint port for the year. This means you are your pa-
AGI for the year.
return claiming the American opportunity credit, rent's qualifying child. If your parent can claim
they aren’t filing it only to get a refund of income • If a parent can claim the child as a qualify- you as a dependent, then you can’t claim your
tax withheld or estimated tax paid. The excep- ing child but no parent does so claim the child as a dependent because of the Depend-
tion to the joint return test doesn't apply, so this child, the child is treated as the qualifying ent Taxpayer Test, explained earlier, unless your
child isn't your qualifying child. child of the person who had the highest parent files a return only to claim a refund of in-
AGI for the year, but only if that person's come tax withheld or estimated tax paid.
AGI is higher than the highest AGI of any of
Qualifying Child of More Than One the child's parents who can claim the child. Example 6—Separated parents. You,
Person your spouse, and your 10-year-old child all lived
Subject to these tiebreaker rules, you and
If your qualifying child isn't a qualifying the other person may be able to choose which in the United States for all of 2023. On August
TIP child of anyone else, this topic doesn't of you claims the child as a qualifying child. 1, 2023, your spouse moved out of the house-
apply to you and you don’t need to hold. In August and September, your child lived
read about it. This is also true if your qualifying You may be able to qualify for the with you. For the rest of the year, your child lived
child isn't a qualifying child of anyone else ex- TIP earned income credit under the rules with your spouse, the child's other parent. Your
cept your spouse with whom you plan to file a for taxpayers without a qualifying child child is a qualifying child of both you and your
joint return. if you have a qualifying child for the earned in- spouse because your child lived with each of
come credit who is claimed as a qualifying child you for more than half the year and because
If a child is treated as the qualifying by another taxpayer. For more information, see your child met the relationship, age, support,
child of the noncustodial parent under Pub. 596. and joint return tests for both of you. At the end
!
CAUTION the rules for children of divorced or of the year, you and your spouse still weren't di-
separated parents (or parents who live apart) Example 1—Child lived with parent and vorced, legally separated, or separated under a
described earlier, see Applying the tiebreaker grandparent. You and your 3-year-old child J written separation agreement, so the rule for
rules to divorced or separated parents (or pa- lived with your parent all year. You are 25 years children of divorced or separated parents (or
rents who live apart), later. old and unmarried, and your AGI is $9,000. Your parents who live apart) doesn't apply.
parent's AGI is $15,000. Your child’s other pa- You and your spouse will file separate re-
Sometimes, a child meets the relationship, turns. Your spouse agrees to let you treat your
age, residency, support, and joint return tests to rent didn't live with you or your child. You
haven't signed Form 8332 (or a similar state- child as a qualifying child. This means, if your
be a qualifying child of more than one person. spouse doesn't claim your child as a qualifying
Although the child is a qualifying child of each of ment).
J is a qualifying child of both you and your child, you can claim this child as a qualifying
these persons, generally only one person can child for the child tax credit and exclusion for
actually treat the child as a qualifying child to parent because J meets the relationship, age,
residency, support, and joint return tests for dependent care benefits (if you qualify for each
take all of the following tax benefits (provided of those tax benefits). However, you can’t claim
the person is eligible for each benefit). both you and your parent. However, only one of
you can claim J. J isn't a qualifying child of any- head of household filing status because you
1. The child tax credit, credit for other de- one else, including J’s other parent. You agree and your spouse didn't live apart for the last 6
pendents, or additional child tax credit. to let your parent claim J. This means your pa- months of the year. As a result, your filing status
rent can claim J as a qualifying child for all of is married filing separately, so you can’t claim
2. Head of household filing status. the earned income credit because you don’t
the five tax benefits listed earlier, if your parent
3. The credit for child and dependent care qualifies for each of those benefits (and if you meet the requirements for certain separated
expenses. don’t claim J as a qualifying child for any of spouses to claim the earned income credit
those tax benefits). when they don’t file a joint return. You and your
4. The exclusion from income for dependent spouse didn't live apart for the last 6 months of
care benefits. 2023, and while you did live apart at the end of
Example 2—Parent has higher AGI than
5. The earned income credit. grandparent. The facts are the same as in Ex- 2023, you aren't legally separated under a writ-
ample 1, except your AGI is $18,000. Because ten separation agreement or decree of separate
The other person can’t take any of these maintenance. Therefore, you don't meet the re-
your parent's AGI isn't higher than yours, your
benefits based on this qualifying child. In other quirements to take the earned income credit as
parent can’t claim J. Only you can claim J.
words, you and the other person can’t agree to a separated spouse who is not filing a joint re-
divide these benefits between you. Example 3—Two persons claim same turn. You also can't take the credit for child and
Tiebreaker rules. To determine which person child. The facts are the same as in Example 1, dependent care expenses because your filing
can treat the child as a qualifying child to claim except you and your parent both claim J as a status is married filing separately and you and
these five tax benefits, the following tiebreaker qualifying child. In this case, you, as the child's your spouse didn't live apart for the last 6
rules apply. parent, will be the only one allowed to claim J months of 2023.
as a qualifying child. The IRS will disallow your
• If only one of the persons is the child's pa- parent's claim to the five tax benefits listed ear- Example 7—Separated parents claim
rent, the child is treated as the qualifying same child. The facts are the same as in Ex-
lier based on J. However, your parent may qual-
child of the parent. ample 6, except you and your spouse both
ify for the earned income credit as a taxpayer
• If the parents file a joint return together and without a qualifying child. claim your child as a qualifying child. In this
can claim the child as a qualifying child, case, only your spouse will be allowed to treat
the child is treated as the qualifying child of Example 4—Qualifying children split be- your child as a qualifying child. This is because,
the parents. tween two persons. The facts are the same during 2023, the child lived with your spouse
as in Example 1, except you also have two other longer than with you. If you claimed the child tax
• If the parents don’t file a joint return to- credit for your child, the IRS will disallow your
young children who are qualifying children of
gether but both parents claim the child as a claim to the child tax credit. If you don’t have an-
both you and your parent. Only one of you can
qualifying child, the IRS will treat the child other qualifying child or dependent, the IRS will
claim each child. However, if your parent's AGI
as the qualifying child of the parent with

also disallow your claim to the exclusion for de- Applying the tiebreaker rules to divorced or claim E as a qualifying child for the earned in-
pendent care benefits. In addition, because you separated parents (or parents who live come credit. Your parent also claims E as a
and your spouse didn't live apart for the last 6 apart). If a child is treated as the qualifying qualifying child for head of household filing sta-
months of the year, your spouse can’t claim child of the noncustodial parent under the rules tus. You, as the child's parent, will be the only
head of household filing status. As a result, your described earlier for children of divorced or sep- one allowed to claim E as a qualifying child for
spouse’s filing status is married filing separately. arated parents (or parents who live apart), only the earned income credit. The IRS will disallow
Your spouse can’t claim the earned income the noncustodial parent can claim the child as a your parent's claim to head of household filing
credit because your spouse doesn’t meet the dependent and claim the child tax credit, addi- status unless your parent has another qualifying
requirements to claim the earned income credit- tional child tax credit, or credit for other depend- child or dependent. Your parent can't claim the
for certain separated spouses. You and your ents for the child. However, only the custodial earned income credit as a taxpayer without a
spouse didn't live apart for the last 6 months of parent can claim the credit for child and de- qualifying child because your parent’s AGI is
2023, and, while you did live apart at the end of pendent care expenses or the exclusion for de- more than $17,640.
2023, you aren't legally separated under a writ- pendent care benefits for the child. Also, gener-
ten separation agreement or decree of separate ally, the noncustodial parent can't claim the
maintenance. Therefore, your spouse doesn't child as a qualifying child for head of household Qualifying Relative
meet the requirements to take the earned in- filing status or the earned income credit. In-
Four tests must be met for a person to be your
come credit as a separated spouse who isn’t fil- stead, generally, the custodial parent, if eligible,
qualifying relative. The four tests are:
ing a joint return. Your spouse also can't take or other eligible person can claim the child as a
the credit for child and dependent care expen- qualifying child for those two benefits. If the 1. Not a qualifying child test,
ses because your spouse’s filing status is mar- child is the qualifying child of more than one
2. Member of household or relationship test,
ried filing separately and you and your spouse person for these benefits, then the tiebreaker
didn't live apart for the last 6 months of 2023. rules just explained determine whether the cus- 3. Gross income test, and
todial parent or another eligible person can treat
4. Support test.
Example 8—Unmarried parents. You, the child as a qualifying child.
your 5-year-old child, L, and L’s other parent Age. Unlike a qualifying child, a qualifying rela-
lived together in the United States all year. You Example 1. You and your 5-year-old child, tive can be any age. There is no age test for a
and L’s other parent aren't married. L is a quali- E, lived all year with your parent in the United qualifying relative.
fying child of both you and L’s other parent be- States. Your parent paid the entire cost of keep-
cause L meets the relationship, age, residency, ing up the home. Your AGI is $10,000. Your pa- Kidnapped child. You may be able to treat a
support, and joint return tests for both you and rent's AGI is $25,000. E’s other parent lived in child as your qualifying relative even if the child
L’s other parent. Your AGI is $12,000 and L’s the United States all year, but didn’t live with has been kidnapped. See Pub. 501 for details.
other parent’s AGI is $14,000. L’s other parent you or E.
agrees to let you claim the child as a qualifying Under the rules explained earlier for children Not a Qualifying Child Test
child. This means you can claim L as a qualify- of divorced or separated parents (or parents A child isn't your qualifying relative if the child is
ing child for the child tax credit, head of house- who live apart), E is treated as the qualifying your qualifying child or the qualifying child of
hold filing status, the credit for child and de- child of E’s other parent, who can claim the any other taxpayer.
pendent care expenses, the exclusion for child tax credit for E. Because of this, you can’t
dependent care benefits, and the earned in- claim the child tax credit for E. However, those Example 1. Your 22-year-old child, who is a
come credit, if you qualify for each of those tax rules don't allow E’s other parent to claim E as a student, lives with you and meets all the tests to
benefits (and if L’s other parent doesn't claim L qualifying child for head of household filing sta- be your qualifying child. This child isn't your
as a qualifying child for any of those tax bene- tus, the credit for child and dependent care ex- qualifying relative.
fits). penses, the exclusion for dependent care bene-
fits, or the earned income credit. Example 2. Your 2-year-old child lives with
Example 9—Unmarried parents claim You and your parent didn't have any child your parents and meets all the tests to be their
same child. The facts are the same as in Ex- care expenses or dependent care benefits, so qualifying child. This child isn't your qualifying
ample 8, except you and L’s other parent both neither of you can claim the credit for child and relative.
claim L as a qualifying child. In this case, only dependent care expenses or the exclusion for
L’s other parent will be allowed to treat L as a dependent care benefits. But E is a qualifying Example 3. Your 30-year old child lives with
qualifying child. This is because L’s other pa- child of both you and your parent for head of you. This child isn’t a qualifying child because
rent’s AGI, $14,000, is more than your AGI, household filing status and the earned income the age test isn’t met. This child may be your
$12,000. If you claimed the child tax credit for L, credit because E meets the relationship, age, qualifying relative if the gross income test and
the IRS will disallow your claim to this credit. If residency, support, and joint return tests for the support test are met.
you don’t have another qualifying child or de- both you and your parent. (The support test
pendent, the IRS will also disallow your claim to doesn't apply for the earned income credit.) Example 4. Your 13-year-old grandchild
head of household filing status, the credit for However, you agree to let your parent claim E. only lived with you for 5 months during the year.
child and dependent care expenses, and the This means your parent can claim E for head of Your grandchild isn’t your qualifying child be-
exclusion for dependent care benefits. How- household filing status and the earned income cause the residency test isn’t met. Your grand-
ever, you may be able to claim the earned in- credit if your parent qualifies for each and if you child may be your qualifying relative if the gross
come credit as a taxpayer without a qualifying don’t claim E as a qualifying child for the earned income test and the support test are met.
child. income credit. (You can’t claim head of house-
hold filing status because your parent paid the Child of person not required to file a return.
Example 10—Child didn't live with a pa- entire cost of keeping up the home.) You may A child isn't the qualifying child of any other tax-
rent. You and your sibling’s child, M, lived with be able to claim the earned income credit as a payer and so may qualify as your qualifying rela-
your parent all year. You are 25 years old, and taxpayer without a qualifying child. tive if the child's parent (or other person for
your AGI is $9,300. Your parent’s AGI is whom the child is defined as a qualifying child)
$15,000. M’s parents file jointly, have an AGI of Example 2. The facts are the same as in isn't required to file an income tax return and ei-
less than $9,000, and don’t live with you or M. Example 1, except your AGI is $25,000 and ther:
M is a qualifying child of both you and your pa- your parent's AGI is $21,000. Your parent can’t • Doesn't file an income tax return, or
rent because M meets the relationship, age, claim E as a qualifying child for any purpose be-
residency, support, and joint return tests for cause your parent’s AGI isn't higher than yours. • Files a return only to get a refund of in-
both you and your parent. However, only your come tax withheld or estimated tax paid.
parent can treat M as a qualifying child. This is Example 3. The facts are the same as in
Example 1—Return not required. You
because your parent’s AGI, $15,000, is more Example 1, except you and your parent both
support an unrelated friend and your friend’s
than your AGI, $9,300.
3-year-old child, who lived with you all year in

your home. Your friend has no gross income, If at any time during the year the person was Death or birth. A person who died during the
isn't required to file a 2023 tax return, and your spouse, that person can’t be your qualify- year, but lived with you as a member of your
doesn't file a 2023 tax return. Both your friend ing relative. household until death, will meet this test. The
and your friend’s child are your qualifying rela- same is true for a child who was born during the
Relatives who don’t have to live with you. A
tives if the support test is met. year and lived with you as a member of your
person related to you in any of the following
household for the rest of the year. The test is
ways doesn't have to live with you all year as a
Example 2—Return filed to claim refund. also met if a child lived with you as a member of
member of your household to meet this test.
The facts are the same as in Example 1, except your household except for any required hospital
your friend had wages of $1,500 during the year • Your child, stepchild, or foster child, or a stay following birth.
and had income tax withheld from your friend’s descendant of any of them (for example, If your dependent died during the year and
wages. Your friend files a return only to get a re- your grandchild). (A legally adopted child is you otherwise qualify to claim that person as a
fund of the income tax withheld and doesn't considered your child.) dependent, you can still claim that person as a
claim the earned income credit or any other tax dependent.
• Your brother, sister, half brother, half sister,
credits or deductions. Both your friend and your stepbrother, or stepsister.
friend’s child are your qualifying relatives if the Example. Your parent, who met the tests to
support test is met. • Your father, mother, grandparent, or other be your qualifying relative, died on January 15.
direct ancestor, but not foster parent. You can claim your parent as a dependent on
Example 3—Earned income credit • Your stepfather or stepmother. your return.
claimed. The facts are the same as in Exam-
ple 2, except your friend had wages of $8,000 • A son or daughter of your brother or sister. Local law violated. A person doesn't meet
during the year and claimed the earned income this test if at any time during the year the rela-
• A son or daughter of your half brother or tionship between you and that person violates
credit. Your friend's child is the qualifying child half sister.
of another taxpayer (your friend), so you can’t local law.
claim your friend's child as your qualifying rela- • A brother or sister of your father or mother.
tive. Also, you can’t claim your friend as your • Your son-in-law, daughter-in-law, fa- Example. Your significant other, T, lived
qualifying relative because of the gross income ther-in-law, mother-in-law, brother-in-law, with you as a member of your household all
test, explained later. or sister-in-law. year. However, your relationship with T violated
the laws of the state where you live because T
Child in Canada or Mexico. You may be able Any of these relationships that were established was married to someone else. Therefore, T
to claim your child as a dependent even if the by marriage aren't ended by death or divorce. doesn't meet this test and you can’t claim T as a
child lives in Canada or Mexico. If the child dependent.
doesn't live with you, the child doesn't meet the Example. In 2017, you and your spouse
residency test to be your qualifying child. How- began supporting your spouse’s unmarried pa- Adopted child. An adopted child is always
ever, the child may still be your qualifying rela- rent, G. Your spouse died in 2022. Despite your treated as your own child. The term “adopted
tive. If the persons the child does live with aren't spouse’s death, G continues to meet this test, child” includes a child who was lawfully placed
U.S. citizens and have no U.S. gross income, even if G doesn’t live with you. You can claim G with you for legal adoption.
those persons aren't “taxpayers,” so the child as a dependent if all other tests are met, includ- Cousin. Your cousin must live with you all year
isn't the qualifying child of any other taxpayer. If ing the gross income and support tests. as a member of your household to meet this
the child isn't the qualifying child of any other test. A cousin is a descendant of a brother or
taxpayer, the child is your qualifying relative as Foster child. A foster child is an individual sister of your father or mother.
long as the gross income test and the support who is placed with you by an authorized place-
test are met. ment agency or by judgment, decree, or other
order of any court of competent jurisdiction. Gross Income Test
You can’t claim as a dependent a child who
lives in a foreign country other than Canada or To meet this test, a person's gross income for
Joint return. If you file a joint return, the per-
Mexico, unless the child is a U.S. citizen, U.S. the year must be less than $4,700.
son can be related to either you or your spouse.
resident alien, or U.S. national. There is an ex- Also, the person doesn't need to be related to Gross income defined. Gross income is all in-
ception for certain adopted children who lived the spouse who provides support. come in the form of money, property, and serv-
with you all year. See Citizen or Resident Test, For example, you provide more than half the ices that isn't exempt from tax.
earlier. support for your spouse’s stepparent. Your In a manufacturing, merchandising, or min-
spouse’s stepparent may be your qualifying rel- ing business, gross income is the total net sales
Example. You provide all the support of ative even if the stepparent doesn't live with minus the cost of goods sold, plus any miscella-
your children, ages 6, 8, and 12, who live in you. However, if you and your spouse file sepa- neous income from the business.
Mexico with your parent and have no income. rate returns, your spouse's stepparent can be Gross receipts from rental property are
You are single and live in the United States. your qualifying relative only if the stepparent gross income. Don’t deduct taxes, repairs, or
Your parent isn't a U.S. citizen and has no U.S. lives with you all year as a member of your other expenses to determine the gross income
income, so your parent isn't a “taxpayer.” Your household. from rental property.
children aren't your qualifying children because
they don’t meet the residency test. But since Temporary absences. A person is considered Gross income includes a partner's share of
they aren't the qualifying children of any other to live with you as a member of your household the gross (not a share of the net) partnership in-
taxpayer, they may be your qualifying relatives during periods of time when one of you, or both, come.
and you may be permitted to claim them as de- is temporarily absent due to special circumstan- Gross income also includes all taxable un-
pendents. You may also be able to claim your ces such as: employment compensation, taxable social se-
parent as a dependent if the gross income and curity benefits, and certain amounts received as
• Illness, scholarship and fellowship grants. Scholarships
support tests are met.
• Education, received by degree candidates and used for tui-
tion, fees, supplies, books, and equipment re-
Member of Household or • Business,
quired for particular courses generally aren't in-
Relationship Test • Vacation, cluded in gross income. For more information
To meet this test, a person must either: • Military service, or about scholarships, see chapter 8.
1. Live with you all year as a member of your • Detention in a juvenile facility. Disabled dependent working at sheltered
household, or workshop. For purposes of the gross income
If the person is placed in a nursing home for test, the gross income of an individual who is
2. Be related to you in one of the ways listed an indefinite period of time to receive constant permanently and totally disabled at any time
under Relatives who don’t have to live with medical care, the absence may be considered during the year doesn't include income for
you below. temporary.

services the individual performs at a sheltered are both considered provided by you in figuring the amount of support you provide each year is
workshop. The availability of medical care at the whether you provide more than half of the sup- the lump-sum payment divided by the relative's
workshop must be the main reason for the indi- port. If your allotment is used to support per- life expectancy. The amount of support you pro-
vidual's presence there. Also, the income must sons other than those you name, you can claim vide also includes any other amounts you provi-
come solely from activities at the workshop that them as dependents if they otherwise qualify. ded during the year.
are incident to this medical care.
A “sheltered workshop” is a school that: Example. You are in the Armed Forces. You
Total Support
authorize an allotment for your surviving parent
• Provides special instruction or training de- that your surviving parent uses to support them- To figure if you provided more than half of a per-
signed to alleviate the disability of the indi- son's support, you must first determine the total
selves and their sibling. If the allotment provides
vidual; and support provided for that person. Total support
more than half of each person's support, you
• Is operated by certain tax-exempt organi- can claim each of them as a dependent, if they includes amounts spent to provide food, lodg-
zations, or by a state, a U.S. territory, a po- otherwise qualify, even though you authorize the ing, clothing, education, medical and dental
litical subdivision of a state or territory, the allotment only for your surviving parent. care, recreation, transportation, and similar ne-
United States, or the District of Columbia. cessities.
Tax-exempt military quarters allowances. Generally, the amount of an item of support
Permanently and totally disabled has the These allowances are treated the same way as is the amount of the expense incurred in provid-
same meaning here as under Qualifying Child, dependency allotments in figuring support. The ing that item. For lodging, the amount of support
earlier. allotment of pay and the tax-exempt basic al- is the fair rental value of the lodging.
lowance for quarters are both considered as Expenses not directly related to any one
Support Test (To Be a Qualifying provided by you for support. member of a household, such as the cost of
Relative) Tax-exempt income. In figuring a person's to- food for the household, must be divided among
To meet this test, you must generally provide tal support, include tax-exempt income, sav- the members of the household.
more than half of a person's total support during ings, and borrowed amounts used to support
the calendar year. that person. Tax-exempt income includes cer- Example 1. G Brown, parent of M Miller,
tain social security benefits, welfare benefits, lives with F and M Miller and their two children.
However, if two or more persons provide
nontaxable life insurance proceeds, Armed G gets social security benefits of $2,400, which
support, but no one person provides more than
Forces family allotments, nontaxable pensions, G spends for clothing, transportation, and recre-
half of a person's total support, see Multiple
and tax-exempt interest. ation. G has no other income. F and M's total
Support Agreement, later.
food expense for the household is $5,200. They
How to determine if support test is met. Example 1. You provide $4,000 toward pay G's medical and drug expenses of $1,200.
You figure whether you have provided more your parent’s support during the year. Your pa- The fair rental value of the lodging provided for
than half of a person's total support by compar- rent has earned income of $600, nontaxable so- G is $1,800 a year, based on the cost of similar
ing the amount you contributed to that person's cial security benefits of $4,800, and tax-exempt rooming facilities. Figure G's total support as
support with the entire amount of support that interest of $200, all of which your parent uses follows.
person received from all sources. This includes for self-support. You can’t claim your parent as
support the person provided from the person’s a dependent because the $4,000 you provide Fair rental value of lodging . . . . . . . . . $ 1,800
own funds. isn’t more than half of your parent’s total support Clothing, transportation, and
You may find Worksheet 3-1 helpful in figur- of $9,600 ($4,000 + $600 +$4,800 + $200). recreation . . . . . . . . . . . . . . . . . 2,400
ing whether you provided more than half of a
person's support. Medical expenses . . . . . . . . . . . . . 1,200
Example 2. K, your sibling’s child, takes out
a student loan of $2,500 and uses it to pay col- Share of food (1/5 of $5,200) . . . . . . . 1,040
Person's own funds not used for support. A
lege tuition. K is personally responsible for the
person's own funds aren't support unless they Total support . . . . . . . . . . . . . . . $6,440
loan. You provide $2,000 toward K’s total sup-
are actually spent for support.
port. You can’t claim K as a dependent because
you provide less than half of K’s support. The support F and M provide, $4,040
Example. Your parent received $2,400 in ($1,800 lodging + $1,200 medical expenses +
social security benefits and $300 in interest, Social security benefits. If a married cou- $1,040 food), is more than half of G's $6,440 to-
paid $2,000 for lodging and $400 for recreation, ple receives benefits that are paid by one check tal support.
and put $300 in a savings account. made out to both of them, half of the total paid
Even though your parent received a total of is considered to be for the support of each Example 2. Your parents, A and B, live with
$2,700 ($2,400 + $300), your parent spent only spouse, unless they can show otherwise. you, your spouse, and your two children in a
$2,400 ($2,000 + $400) for your parent’s own If a child receives social security benefits house you own. The fair rental value of your pa-
support. If you spent more than $2,400 for your and uses them toward their own support, the rents' share of the lodging is $2,000 a year
parent’s support and no other support was re- benefits are considered as provided by the ($1,000 each), which includes furnishings and
ceived, you have provided more than half of child. utilities. A receives a nontaxable pension of
your parent’s support. $4,200, which A spends equally between A and
Support provided by the state (welfare, B for items of support such as clothing, trans-
Child's wages used for own support. You food stamps, housing, etc.). Benefits provi-
can’t include in your contribution to your child's portation, and recreation. Your total food ex-
ded by the state to a needy person are gener- pense for the household is $6,000. Your heat
support any support paid for by the child with ally considered support provided by the state.
the child's own wages, even if you paid the wa- and utility bills amount to $1,200. B has hospital
However, payments based on the needs of the and medical expenses of $600, which you pay
ges. recipient won't be considered as used entirely during the year. Figure your parents' total sup-
Year support is provided. The year you pro- for that person's support if it is shown that part port as follows.
vide the support is the year you pay for it, even if of the payments weren't used for that purpose.
you do so with borrowed money that you repay Foster care. Payments you receive for the sup-
in a later year. port of a foster child from a child placement
If you use a fiscal year to report your income, agency are considered support provided by the
you must provide more than half of the depend- agency. See Foster care payments and expen-
ent's support for the calendar year in which your ses, earlier.
fiscal year begins.
Home for the aged. If you make a lump-sum
Armed Forces dependency allotments. The advance payment to a home for the aged to
part of the allotment contributed by the govern- take care of your relative for life and the pay-
ment and the part taken out of your military pay ment is based on that person's life expectancy,

Support provided A B support of that person by the fair rental value of haven't provided more than half of your child’s
lodging the person provides you. support.
Fair rental value of lodging . . . $1,000 $1,000
Property. Property provided as support is Childcare expenses. If you pay someone to
Pension spent for their measured by its fair market value. Fair market provide child or dependent care, you can in-
support . . . . . . . . . . . . 2,100 2,100
value is the price that property would sell for on clude these payments in the amount you provi-
Share of food (1/6 of the open market. It is the price that would be ded for the support of your child or disabled de-
$6,000) . . . . . . . . . . . . 1,000 1,000 agreed upon between a willing buyer and a will- pendent, even if you claim a credit for the
Medical expenses for B . . . . . 600 ing seller, with neither being required to act, and payments. For information on the credit, see
both having reasonable knowledge of the rele- Pub. 503.
Parents' total support . . . . $4,100 $4,700 vant facts.
Other support items. Other items may be
You must apply the support test separately considered as support depending on the facts
Capital expenses. Capital items, such as
to each parent. You provide $2,000 ($1,000 in each case.
furniture, appliances, and cars, bought for a per-
lodging + $1,000 food) of A’s total support of son during the year can be included in total sup-
$4,100—less than half. You provide $2,600 to B port under certain circumstances. Don’t Include in Total Support
($1,000 lodging + $1,000 food + $600 medi- The following examples show when a capital The following items aren't included in total sup-
cal)—more than half of B’s total support of item is or isn't support. port.
$4,700. You meet the support test for B, but not
A. Heat and utility costs are included in the fair Example 1. You buy a $200 power lawn 1. Federal, state, and local income taxes
rental value of the lodging, so these aren't con- mower for your 13-year-old child. The child is paid by persons from their own income.
sidered separately. given the duty of keeping the lawn trimmed. Be- 2. Social security and Medicare taxes paid
Lodging. If you provide a person with lodging, cause the lawn mower benefits all members of by persons from their own income.
you are considered to provide support equal to the household, don’t include the cost of the
lawn mower in the support of your child. 3. Life insurance premiums.
the fair rental value of the room, apartment,
house, or other shelter in which the person 4. Funeral expenses.
Example 2. You buy a $150 television set
lives. Fair rental value includes a reasonable al- 5. Scholarships received by your child if your
as a birthday present for your 12-year-old child.
lowance for the use of furniture and appliances, child is a student.
The television set is placed in your child's bed-
and for heat and other utilities that are provided.
room. You can include the cost of the television 6. Survivors' and Dependents' Educational
Fair rental value defined. Fair rental value set in the support of your child. Assistance payments used for the support
is the amount you could reasonably expect to of the child who receives them.
receive from a stranger for the same kind of Example 3. You pay $5,000 for a car and
lodging. It is used instead of actual expenses register it in your name. You and your
17-year-old child use the car equally. Because Multiple Support Agreement
such as taxes, interest, depreciation, paint, in-
surance, utilities, and the cost of furniture and you own the car and don’t give it to your child Sometimes no one provides more than half of
appliances. In some cases, fair rental value may but merely let your child use it, don’t include the the support of a person. Instead, two or more
be equal to the rent paid. cost of the car in your child’s total support. How- persons, each of whom would be able to claim
If you provide the total lodging, the amount ever, you can include in your child's support the person as a dependent but for the support
of support you provide is the fair rental value of your out-of-pocket expenses of operating the test, together provide more than half of the per-
the room the person uses, or a share of the fair car for your child’s benefit. son's support.
rental value of the entire dwelling if the person When this happens, you can agree that any
Example 4. Your 17-year-old child, using one of you who individually provides more than
has use of your entire home. If you don’t provide
personal funds, buys a car for $4,500. You pro- 10% of the person's support, but only one, can
the total lodging, the total fair rental value must
vide the rest of your child's support, $4,000. Be- claim the person as a dependent. Each of the
be divided depending on how much of the total
cause the car is bought and owned by your others must sign a statement agreeing not to
lodging you provide. If you provide only a part
child, the car's fair market value ($4,500) must claim the person as a dependent for that year.
and the person supplies the rest, the fair rental
be included in your child’s support. Your child The person who claims the person as a de-
value must be divided between both of you ac-
has provided more than half of their own total pendent must keep these signed statements for
cording to the amount each provides.
support of $8,500 ($4,500 + $4,000), so this their own records. A multiple support declara-
Example. Your parents live rent free in a child isn't your qualifying child. You didn't pro- tion identifying each of the others who agreed
house you own. It has a fair rental value of vide more than half of this child’s total support, not to claim the person as a dependent must be
$5,400 a year furnished, which includes a fair so this child isn't your qualifying relative. You attached to the return of the person claiming the
rental value of $3,600 for the house and $1,800 can’t claim this child as a dependent. person as a dependent. Form 2120 can be
for the furniture. This doesn't include heat and Medical insurance premiums. Medical insur- used for this purpose.
utilities. The house is completely furnished with ance premiums you pay, including premiums for You can claim someone as a dependent un-
furniture belonging to your parents. You pay supplementary Medicare coverage, are inclu- der a multiple support agreement for someone
$600 for their utility bills. Utilities usually aren't ded in the support you provide. related to you or for someone who lived with
included in rent for houses in the area where you all year as a member of your household.
your parents live. Therefore, you consider the Medical insurance benefits. Medical insur-
total fair rental value of the lodging to be $6,000 ance benefits, including basic and supplemen- Example 1. You, and your siblings, S, B,
($3,600 fair rental value of the unfurnished tary Medicare benefits, aren't part of support. and D, provide the entire support of your parent
house + $1,800 allowance for the furnishings for the year. You provide 45%, S provides 35%,
provided by your parents + $600 cost of utilities) Tuition payments and allowances under the and B and D each provide 10%. Either you or S
of which you are considered to provide $4,200 GI Bill. Amounts veterans receive under the GI can claim your parent as a dependent; the one
($3,600 + $600). Bill for tuition payments and allowances while who doesn’t must sign a statement agreeing not
they attend school are included in total support. to claim your parent as a dependent. The one
Person living in their own home. The total who claims your parent as a dependent must
fair rental value of a person's home that the per- Example. During the year, your child re- attach Form 2120, or a similar declaration, to
son owns is considered support contributed by ceives $2,200 from the government under the their return and must keep the statement signed
that person. GI Bill. Your child uses this amount for your by the other for their records. Because neither B
child’s education. You provide the rest of your nor D provides more than 10% of the support,
Living with someone rent free. If you live child’s support, $2,000. Because GI benefits neither can claim your parent as a dependent
with a person rent free in that person’s home, are included in total support, your child’s total and neither has to sign a statement.
you must reduce the amount you provide for support is $4,200 ($2,200 + $2,000). You

Example 2. You and your sibling each pro- Taxpayer identification numbers for only income tax, but self-employment tax
vide 20% of your parent's support for the year. adoptees. If you have a child who was placed and alternative minimum tax as well.
The remaining 60% of your parent’s support is with you by an authorized placement agency, This chapter explains these methods. In ad-
provided equally by two persons who are unre- you may be able to claim the child as a depend- dition, it also explains the following.
lated. Your parent doesn't live with them. Be- ent. However, if you can’t get an SSN or an ITIN
cause more than half of your parent’s support is for the child, you must get an ATIN for the child • Credit for withholding and estimated
provided by persons who can’t claim your pa- from the IRS. See Form W-7A, Application for tax. When you file your 2023 income tax
rent as a dependent, no one can claim your pa- Taxpayer Identification Number for Pending U.S. return, take credit for all the income tax
rent as a dependent. Adoptions, for details. withheld from your salary, wages, pen-
sions, etc., and for the estimated tax you
paid for 2023. Also take credit for any ex-
Support Test for Children of cess social security or railroad retirement
Divorced or Separated Parents (or tax withheld. See Pub. 505.
Parents Who Live Apart)
• Underpayment penalty. If you didn't pay
In most cases, a child of divorced or separated
parents (or parents who live apart) will be a
qualifying child of one of the parents. See Chil-
4. enough tax during the year, either through
withholding or by making estimated tax
payments, you may have to pay a penalty.
dren of divorced or separated parents (or pa- In most cases, the IRS can figure this pen-
rents who live apart) under Qualifying Child,
earlier. However, if the child doesn't meet the re- Tax Withholding alty for you. See Underpayment Penalty for
2023 at the end of this chapter.
quirements to be a qualifying child of either pa-
rent, the child may be a qualifying relative of
one of the parents. If you think this might apply and Estimated Useful Items
to you, see Pub. 501. You may want to see:
Tax
Social Security Publication
Numbers (SSNs) 505 Tax Withholding and Estimated Tax

What's New for 2024
505
for Dependents Form (and Instructions)
Tax law changes for 2024. When you figure W-4 Employee's Withholding Certificate
You must show the SSN of any dependent you
W-4
how much income tax you want withheld from W-4P Withholding Certificate for Periodic
list in the Dependents section of your Form
your pay and when you figure your estimated
W-4P
1040 or 1040-SR. Pension or Annuity Payments

tax, consider tax law changes effective in 2024.
If you don’t show the dependent's SSN For more information, see Pub. 505, Tax With- W-4S Request for Federal Income Tax W-4S
when required, or if you show an incor- holding and Estimated Tax. Withholding From Sick Pay
!
CAUTION rect SSN, certain tax benefits may be
W-4V Voluntary Withholding Request
disallowed.
Reminders
W-4V
1040-ES Estimated Tax for Individuals

No SSN. If a person whom you expect to claim
1040-ES
as a dependent on your return doesn't have an 2210 Underpayment of Estimated Tax by

Estimated tax safe harbor for higher in-
2210
SSN, either you or that person should apply for Individuals, Estates, and Trusts
come taxpayers. If your 2023 adjusted gross
an SSN as soon as possible by filing Form income was more than $150,000 ($75,000 if 2210-F Underpayment of Estimated Tax
SS-5, Application for a Social Security Card, you are married filing a separate return), you
2210-F
by Farmers and Fishermen

with the Social Security Administration (SSA). must pay the smaller of 90% of your expected
You can get Form SS-5 online at SSA.gov/
forms/ss-5.pdf or at your local SSA office.
tax for 2024 or 110% of the tax shown on your
2023 return to avoid an estimated tax penalty.
Tax Withholding
It usually takes about 2 weeks to get an SSN
once the SSA has all the information it needs. If
for 2024
you don’t have a required SSN by the filing due Introduction This section discusses income tax withholding
date, you can file Form 4868 for an extension of on:
time to file. This chapter discusses how to pay your tax as
you earn or receive income during the year. In • Salaries and wages,
Born and died in 2023. If your child was general, the federal income tax is a • Tips,
born and died in 2023, and you don’t have an pay-as-you-go tax. There are two ways to pay
SSN for the child, you may attach a copy of the as you go. • Taxable fringe benefits,
child's birth certificate, death certificate, or hos-
• Withholding. If you are an employee, your • Sick pay,
pital records instead. The document must show
the child was born alive. If you do this, enter
employer probably withholds income tax • Pensions and annuities,
from your pay. Tax may also be withheld
“DIED” in column (2) of the Dependents section
from certain other income, such as pen-
• Gambling winnings,
of your Form 1040 or 1040-SR. • Unemployment compensation, and
sions, bonuses, commissions, and gam-
Alien or adoptee with no SSN. If your de- bling winnings. The amount withheld is • Certain federal payments.
pendent doesn't have and can’t get an SSN, paid to the IRS in your name.
you must show the Individual Taxpayer Identifi- This section explains the rules for withholding
• Estimated tax. If you don't pay your tax tax from each of these types of income.
cation Number (ITIN) or adoption taxpayer iden- through withholding, or don't pay enough
tification number (ATIN) instead of an SSN. tax that way, you may have to pay estima- This section also covers backup withholding
ted tax. People who are in business for on interest, dividends, and other payments.
Taxpayer identification numbers for ali-
themselves will generally have to pay their
ens. If your dependent is a resident or nonresi-
tax this way. Also, you may have to pay es-
dent alien who doesn't have and isn't eligible to
timated tax if you receive income such as Salaries and Wages
get an SSN, your dependent must apply for an
dividends, interest, capital gains, rent, and
ITIN. For details on how to apply, see Form Income tax is withheld from the pay of most em-
royalties. Estimated tax is used to pay not
W-7, Application for IRS Individual Taxpayer ployees. Your pay includes your regular pay, bo-
Identification Number. nuses, commissions, and vacation allowances.
Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 37

It also includes reimbursements and other ex- • Step 3. Complete this step if you claim de- Completing Form W-4 and
pense allowances paid under a nonaccountable pendents and other credits. Worksheets
plan. See Supplemental Wages, later, for more
• Step 4. Complete this optional step to Form W-4 has worksheets to help you figure the
information about reimbursements and allowan- make other adjustments. correct amount of withholding you can claim.
ces paid under a nonaccountable plan. *Other income The worksheets are for your own records. Don't
If your income is low enough that you won't *Deductions give them to your employer.
have to pay income tax for the year, you may be *Extra withholding
exempt from withholding. This is explained un- Multiple Jobs Worksheet. If you have income
der Exemption From Withholding, later. from more than one job at the same time, or are
You can ask your employer to withhold in- New Job married filing jointly and you and your spouse
come tax from noncash wages and other wages When you start a new job, you must fill out Form both work, complete the Multiple Jobs Work-
not subject to withholding. If your employer W-4 and give it to your employer. Your employer sheet on the Form W-4.
doesn't agree to withhold tax, or if not enough is should have copies of the form. If you need to If you and your spouse expect to file sepa-
withheld, you may have to pay estimated tax, as change the information later, you must fill out a rate returns, figure your withholding using sepa-
discussed later under Estimated Tax for 2024. new form. rate worksheets based on your own individual
If you work only part of the year (for exam- income, adjustments, deductions, and credits.
Military retirees. Military retirement pay is
ple, you start working after the beginning of the
treated in the same manner as regular pay for Deductions Worksheet. Use the Deductions
year), too much tax may be withheld. You may
income tax withholding purposes, even though Worksheet on Form W-4 if you plan to itemize
be able to avoid overwithholding if your em-
it is treated as a pension or annuity for other tax deductions or claim certain adjustments to in-
ployer agrees to use the part-year method. See
purposes. come and you want to reduce your withholding.
Part-Year Method in chapter 1 of Pub. 505 for
Also complete this worksheet when you have
Household workers. If you are a household more information.
changes to these items to see if you need to
worker, you can ask your employer to withhold
Employee also receiving pension income. change your withholding.
income tax from your pay. A household worker
If you receive pension or annuity income and
is an employee who performs household work
begin a new job, you will need to file Form W-4 Getting the Right Amount of Tax
in a private home, local college club, or local fra-
with your new employer. However, you can
ternity or sorority chapter.
choose to split your withholding between your
Withheld
Tax is withheld only if you want it withheld pension and job in any manner. In most situations, the tax withheld from your
and your employer agrees to withhold it. If you pay will be close to the tax you figure on your re-
don't have enough income tax withheld, you turn if you follow these two rules.
may have to pay estimated tax, as discussed Changing Your Withholding
later under Estimated Tax for 2024. During the year, changes may occur to your • You accurately complete all the Form W-4
worksheets that apply to you.
marital status, adjustments, deductions, or
Farmworkers. Generally, income tax is with-
held from your cash wages for work on a farm credits you expect to claim on your tax return. • You give your employer a new Form W-4
When this happens, you may need to give your when changes occur.
unless your employer does both of these:
employer a new Form W-4 to change your with- But because the worksheets and withhold-
• Pays you cash wages of less than $150 holding status. ing methods don't account for all possible situa-
during the year, and If a change in personal circumstances re- tions, you may not be getting the right amount
• Has expenditures for agricultural labor to- duces the amount of withholding you are enti- withheld. This is most likely to happen in the fol-
taling less than $2,500 during the year. tled to claim, you are required to give your em- lowing situations.
ployer a new Form W-4 within 10 days after the
Differential wage payments. When employ- change occurs. • You are married and both you and your
ees are on leave from employment for military spouse work.
duty, some employers make up the difference Changing your withholding for 2025. If
events in 2024 will change the amount of with-
• You have more than one job at a time.
between the military pay and civilian pay. Pay-
ments to an employee who is on active duty for holding you should claim for 2025, you must • You have nonwage income, such as inter-
a period of more than 30 days will be subject to give your employer a new Form W-4 by Decem- est, dividends, alimony, unemployment
income tax withholding, but not subject to social ber 1, 2024. If the event occurs in December compensation, or self-employment in-
security, Medicare, or federal unemployment 2024, submit a new Form W-4 within 10 days. come.
(FUTA) tax withholding. The wages and with- • You will owe additional amounts with your
holding will be reported on Form W-2, Wage Checking Your Withholding return, such as self-employment tax.
and Tax Statement.
After you have given your employer a Form • Your withholding is based on obsolete
W-4, you can check to see whether the amount Form W-4 information for a substantial part
Determining Amount of Tax of tax withheld from your pay is too little or too of the year.
Withheld Using Form W-4 much. If too much or too little tax is being with- • You work only part of the year.
The amount of income tax your employer withheld, you should give your employer a new
Form W-4 to change your withholding. You • You change the amount of your withholding
holds from your regular pay depends on two during the year.
things. should try to have your withholding match your
actual tax liability. If not enough tax is withheld, • You are subject to Additional Medicare Tax
• The amount you earn in each payroll pe- you will owe tax at the end of the year and may or Net Investment Income Tax (NIIT). If you
riod. have to pay interest and a penalty. If too much anticipate liability for Additional Medicare
• The information you give your employer on tax is withheld, you will lose the use of that Tax or NIIT, you may request that your em-
Form W-4. money until you get your refund. Always check ployer withhold an additional amount of in-
your withholding if there are personal or finan- come tax withholding on Form W-4.
Form W-4 includes steps to help you figure cial changes in your life or changes in the law
your withholding. Complete Steps 2 through 4 Cumulative wage method. If you change the
that might change your tax liability.
only if they apply to you. amount of your withholding during the year, too
much or too little tax may have been withheld
• Step 1. Enter your personal information in- Note. You can’t give your employer a pay-
cluding your filing status. ment to cover withholding on salaries and wa- for the period before you made the change. You
ges for past pay periods or a payment for esti- may be able to compensate for this if your em-
• Step 2. Complete this step if you have mated tax. ployer agrees to use the cumulative wage with-
more than one job at the same time or are holding method for the rest of the year. You
married filing jointly and you and your must ask your employer in writing to use this
spouse both work. method.
38 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

To be eligible, you must have been paid for You can claim exemption from withholding Penalties
the same kind of payroll period (weekly, bi- for 2024 only if both of the following situations
You may have to pay a penalty of $500 if both of
weekly, etc.) since the beginning of the year. apply.
the following apply.
• For 2023, you had a right to a refund of all • You make statements or claim withholding
Publication 505 federal income tax withheld because you
on your Form W-4 that reduce the amount
To make sure you are getting the right amount had no tax liability.
of tax withheld.
of tax withheld, get Pub. 505. It will help you • For 2024, you expect a refund of all federal • You have no reasonable basis for those
compare the total tax to be withheld during the income tax withheld because you expect to
year with the tax you can expect to figure on statements or withholding at the time you
have no tax liability.
prepare your Form W-4.
your return. It will also help you determine how
much, if any, additional withholding is needed Students. If you are a student, you aren’t auto- There is also a criminal penalty for willfully
each payday to avoid owing tax when you file matically exempt. See chapter 1 to find out if supplying false or fraudulent information on your
your return. If you don't have enough tax with- you must file a return. If you work only part time Form W-4 or for willfully failing to supply infor-
held, you may have to pay estimated tax, as ex- or only during the summer, you may qualify for mation that would increase the amount with-
plained under Estimated Tax for 2024, later. exemption from withholding. held. The penalty upon conviction can be either
Age 65 or older or blind. If you are 65 or a fine of up to $1,000 or imprisonment for up to
You can use the Tax Withholding Esti-
older or blind, use Worksheet 1-1 or 1-2 in 1 year, or both.
TIP mator at IRS.gov/W4App, instead of
chapter 1 of Pub. 505 to help you decide if you These penalties will apply if you deliberately
Pub. 505 or the worksheets included
qualify for exemption from withholding. Don't and knowingly falsify your Form W-4 in an at-
with Form W-4, to determine whether you need
use either worksheet if you will itemize deduc- tempt to reduce or eliminate the proper with-
to have your withholding increased or de-
tions or claim tax credits on your 2024 return. holding of taxes. A simple error or an honest
creased.
Instead, see Itemizing deductions or claiming mistake won't result in one of these penalties.
credits in chapter 1 of Pub. 505.
Rules Your Employer Must Follow Claiming exemption from withholding. To Tips
It may be helpful for you to know some of the claim exemption, you must give your employer a
withholding rules your employer must follow. Form W-4. Write “Exempt” on the form in the The tips you receive while working on your job
These rules can affect how to fill out your Form space below Step 4(c) and complete the appli- are considered part of your pay. You must in-
W-4 and how to handle problems that may cable steps of the form. clude your tips on your tax return on the same
arise. If you claim exemption, but later your situa- line as your regular pay. However, tax isn't with-
tion changes so that you will have to pay in- held directly from tip income, as it is from your
New Form W-4. When you start a new job,
come tax after all, you must file a new Form W-4 regular pay. Nevertheless, your employer will
your employer should have you complete a
within 10 days after the change. If you claim ex- take into account the tips you report when figur-
Form W-4. Beginning with your first payday,
emption in 2024, but you expect to owe income ing how much to withhold from your regular pay.
your employer will use the information you give
tax for 2025, you must file a new Form W-4 by For more information on reporting your tips
on the form to figure your withholding.
December 1, 2024. to your employer and on the withholding rules
If you later fill out a new Form W-4, your em-
Your claim of exempt status may be re- for tip income, see Pub. 531, Reporting Tip In-
ployer can put it into effect as soon as possible.
viewed by the IRS. come.
The deadline for putting it into effect is the start
of the first payroll period ending 30 or more An exemption is good for only 1 year. You How employer figures amount to withhold.
days after you turn it in. must give your employer a new Form W-4 by The tips you report to your employer are coun-
February 15 each year to continue your exemp- ted as part of your income for the month you re-
No Form W-4. If you don't give your employer
tion. port them. Your employer can figure your with-
a completed Form W-4, your employer must
holding in either of two ways.
withhold at the highest rate, as if you were sin-
gle. Supplemental Wages • By withholding at the regular rate on the
sum of your pay plus your reported tips.
Repaying withheld tax. If you find you are Supplemental wages include bonuses, commis-
having too much tax withheld because you sions, overtime pay, vacation allowances, cer- • By withholding at the regular rate on your
didn't claim the correct amount of withholding tain sick pay, and expense allowances under pay plus a percentage of your reported
you are entitled to, you should give your em- certain plans. The payer can figure withholding tips.
ployer a new Form W-4. Your employer can’t re- on supplemental wages using the same method
Not enough pay to cover taxes. If your regu-
pay any of the tax previously withheld. Instead, used for your regular wages. However, if these
lar pay isn't enough for your employer to with-
claim the full amount withheld when you file payments are identified separately from your
hold all the tax (including income tax and social
your tax return. regular wages, your employer or other payer of
security and Medicare taxes (or the equivalent
However, if your employer has withheld supplemental wages can withhold income tax
railroad retirement tax)) due on your pay plus
more than the correct amount of tax for the from these wages at a flat rate.
your tips, you can give your employer money to
Form W-4 you have in effect, you don't have to Expense allowances. Reimbursements or cover the shortage. See Pub. 531 for more infor-
fill out a new Form W-4 to have your withholding other expense allowances paid by your em- mation.
lowered to the correct amount. Your employer ployer under a nonaccountable plan are treated
can repay the amount that was withheld incor- Allocated tips. Your employer shouldn't with-
as supplemental wages.
rectly. If you aren’t repaid, your Form W-2 will hold income tax, Medicare tax, social security
Reimbursements or other expense allowan- tax, or railroad retirement tax on any allocated
reflect the full amount actually withheld, which ces paid under an accountable plan that are
you would claim when you file your tax return. tips. Withholding is based only on your pay plus
more than your proven expenses are treated as your reported tips. Your employer should refund
paid under a nonaccountable plan if you don't to you any incorrectly withheld tax. See Pub.
Exemption From Withholding return the excess payments within a reasonable 531 for more information.
If you claim exemption from withholding, your period of time.
employer won't withhold federal income tax For more information about accountable and
from your wages. The exemption applies only to nonaccountable expense allowance plans, see Taxable Fringe Benefits
income tax, not to social security, Medicare, or Pub. 505.
The value of certain noncash fringe benefits you
FUTA tax withholding.
receive from your employer is considered part
of your pay. Your employer must generally with-
hold income tax on these benefits from your
regular pay.

For information on fringe benefits, see
Fringe Benefits under Employee Compensation
• A stock bonus plan; and Federal Payments
• Any other plan that defers the time you re-
in chapter 5. You can choose to have income tax withheld
ceive compensation.
Although the value of your personal use of from certain federal payments you receive.
an employer-provided car, truck, or other high- The amount withheld depends on whether These payments are the following.
way motor vehicle is taxable, your employer can you receive payments spread out over more
than 1 year (periodic payments), within 1 year 1. Social security benefits.
choose not to withhold income tax on that
amount. Your employer must notify you if this (nonperiodic payments), or as an eligible roll- 2. Tier 1 railroad retirement benefits.
choice is made. over distribution (ERD). Income tax withholding
from an ERD is mandatory. 3. Commodity credit corporation loans you
For more information on withholding on taxa-
choose to include in your gross income.
ble fringe benefits, see chapter 1 of Pub. 505. More information. For more information on
withholding on pensions and annuities, includ- 4. Payments under the Agricultural Act of
1949 (7 U.S.C. 1421 et seq.), as amen-
Sick Pay ing a discussion of Form W-4P, see Pensions
and Annuities in chapter 1 of Pub. 505. ded, or title II of the Disaster Assistance
Act of 1988, that are treated as insurance
Sick pay is a payment to you to replace your
proceeds and that you receive because:
regular wages while you are temporarily absent Gambling Winnings
from work due to sickness or personal injury. To a. Your crops were destroyed or dam-
qualify as sick pay, it must be paid under a plan Income tax is withheld at a flat 24% rate from aged by drought, flood, or any other
to which your employer is a party. certain kinds of gambling winnings. natural disaster; or
If you receive sick pay from your employer or Gambling winnings of more than $5,000 b. You were unable to plant crops be-
an agent of your employer, income tax must be from the following sources are subject to in- cause of a natural disaster described
withheld. An agent who doesn't pay regular wa- come tax withholding. in (a).
ges to you may choose to withhold income tax
at a flat rate. • Any sweepstakes; wagering pool, including 5. Any other payment under federal law as
However, if you receive sick pay from a third payments made to winners of poker tour- determined by the Secretary.
party who isn't acting as an agent of your em- naments; or lottery.
To make this choice, fill out Form W-4V (or a
ployer, income tax will be withheld only if you • Any other wager, if the proceeds are at similar form provided by the payer) and give it to
choose to have it withheld. See Form W-4S, least 300 times the amount of the bet. the payer.
later.
It doesn't matter whether your winnings are paid If you don't choose to have income tax with-
If you receive payments under a plan in in cash, in property, or as an annuity. Winnings held, you may have to pay estimated tax. See
which your employer doesn't participate (such not paid in cash are taken into account at their Estimated Tax for 2024, later.
as an accident or health plan where you paid all fair market value. If you don't pay enough tax, either through
the premiums), the payments aren’t sick pay
withholding or estimated tax, or a combination
and usually aren’t taxable. Exception. Gambling winnings from bingo, of both, you may have to pay a penalty. See Un-
Union agreements. If you receive sick pay un- keno, and slot machines generally aren’t sub- derpayment Penalty for 2023 at the end of this
der a collective bargaining agreement between ject to income tax withholding. However, you chapter.
your union and your employer, the agreement may need to provide the payer with a social se-
curity number to avoid withholding. See Backup More information. For more information about
may determine the amount of income tax with-
withholding on gambling winnings in chapter 1 the tax treatment of social security and railroad
holding. See your union representative or your
of Pub. 505. If you receive gambling winnings retirement benefits, see chapter 7. Get Pub.
employer for more information.
not subject to withholding, you may need to pay 225, Farmer's Tax Guide, for information about
Form W-4S. If you choose to have income tax estimated tax. See Estimated Tax for 2024, the tax treatment of commodity credit corpora-
withheld from sick pay paid by a third party, later. tion loans or crop disaster payments.
such as an insurance company, you must fill out
If you don't pay enough tax, either through
Form W-4S. Its instructions contain a worksheet
you can use to figure the amount you want with-
withholding or estimated tax, or a combination Backup Withholding
of both, you may have to pay a penalty. See Un-
held. They also explain restrictions that may ap-
derpayment Penalty for 2023 at the end of this Banks or other businesses that pay you certain
ply.
chapter. kinds of income must file an information return
Give the completed form to the payer of your (Form 1099) with the IRS. The information re-
sick pay. The payer must withhold according to Form W-2G. If a payer withholds income tax
turn shows how much you were paid during the
your directions on the form. from your gambling winnings, you should re-
year. It also includes your name and taxpayer
ceive a Form W-2G, Certain Gambling Win-
Estimated tax. If you don't request withholding identification number (TIN). TINs are explained
nings, showing the amount you won and the
on Form W-4S, or if you don't have enough tax in chapter 1 under Social Security Number
amount withheld. Report the tax withheld on
withheld, you may have to make estimated tax (SSN).
Form 1040 or 1040-SR, line 25c.
payments. If you don't pay enough tax, either These payments generally aren’t subject to
through estimated tax or withholding, or a com- withholding. However, “backup” withholding is
bination of both, you may have to pay a penalty. Unemployment required in certain situations. Backup withhold-
See Underpayment Penalty for 2023 at the end
of this chapter.
Compensation ing can apply to most kinds of payments that
are reported on Form 1099.
The payer must withhold at a flat 24% rate in
You can choose to have income tax withheld
Pensions and Annuities from unemployment compensation. To make
the following situations.
this choice, fill out Form W-4V (or a similar form • You don't give the payer your TIN in the re-
Income tax will usually be withheld from your provided by the payer) and give it to the payer. quired manner.
pension or annuity distributions unless you All unemployment compensation is taxable. • The IRS notifies the payer that the TIN you
choose not to have it withheld. This rule applies If you don't have income tax withheld, you may gave is incorrect.
to distributions from: have to pay estimated tax. See Estimated Tax
for 2024, later. • You are required, but fail, to certify that you
• A traditional individual retirement arrange- aren’t subject to backup withholding.
ment (IRA); If you don't pay enough tax, either through
withholding or estimated tax, or a combination • The IRS notifies the payer to start withhold-
• A life insurance company under an endow- of both, you may have to pay a penalty. See Un- ing on interest or dividends because you
ment, annuity, or life insurance contract; derpayment Penalty for 2023 at the end of this have underreported interest or dividends
• A pension, annuity, or profit-sharing plan; chapter. on your income tax return. The IRS will do

Figure 4-A. Do You Have To Pay Estimated Tax?
Start Here
Will you owe $1,000 or more Will your income tax Will your income tax
for 2024 after subtracting Yes withholding and refundable No withholding and refundable No
income tax withholding and credits* be at least 90% credits* be at least 100%** of
refundable credits* from your (662/3% for farmers and the tax shown on your 2023
total tax? (Don’t subtract any fishermen) of the tax shown on tax return?
estimated tax payments.) your 2024 tax return? Note. Your 2023 return must
have covered a 12-month
No Yes period.
Yes
You are NOT required to pay

estimated tax.
You MUST make estimated

tax payment(s) by the
required due date(s).
See When To Pay

Estimated Tax.
*Use the refundable credits shown on the 2024 Estimated Tax Worksheet in Pub. 505.
**110% if less than two-thirds of your gross income for 2023 and 2024 is from farming or fishing and your 2023
adjusted gross income was more than $150,000 ($75,000 if your filing status for 2024 is married filing a separate return).
this only after it has mailed you four noti-

ces.
Who Doesn't Have To Pay 1. You expect to owe at least $1,000 in tax for
2024, after subtracting your withholding
Go to IRS.gov/Businesses/Small-
Estimated Tax and refundable credits.
Businesses-Self-Employed/Backup- If you receive salaries or wages, you can avoid 2. You expect your withholding plus your re-
Withholding for more information on kinds of having to pay estimated tax by asking your em- fundable credits to be less than the
payments subject to backup withholding. ployer to take more tax out of your earnings. To smaller of:
Penalties. There are civil and criminal penal- do this, give a new Form W-4 to your employer.
a. 90% of the tax to be shown on your
ties for giving false information to avoid backup See chapter 1 of Pub. 505.
2024 tax return, or
withholding. The civil penalty is $500. The crimi- Estimated tax not required. You don't have to b. 100% of the tax shown on your 2023
nal penalty, upon conviction, is a fine of up to pay estimated tax for 2024 if you meet all three tax return (but see Special rules for
$1,000 or imprisonment of up to 1 year, or both. of the following conditions. farmers, fishermen, and higher in-
• You had no tax liability for 2023. come taxpayers, later). Your 2023 tax
Estimated Tax for 2024 • You were a U.S. citizen or resident alien for return must cover all 12 months.
Estimated tax is the method used to pay tax on the whole year. If the result from using the general rule
income that isn't subject to withholding. This in- • Your 2023 tax year covered a 12-month pe- ! above suggests that you won't have
CAUTION enough withholding, complete the
cludes income from self-employment, interest, riod.
dividends, alimony, rent, gains from the sale of 2024 Estimated Tax Worksheet in Pub. 505 for a
You had no tax liability for 2023 if your total more accurate calculation.
assets, prizes, and awards. You may also have
tax was zero or you didn't have to file an income
to pay estimated tax if the amount of income tax
tax return. For the definition of “total tax” for Special rules for farmers, fishermen, and
being withheld from your salary, pension, or
2023, see Pub. 505, chapter 2. higher income taxpayers. If at least
other income isn't enough.
two-thirds of your gross income for tax year
Estimated tax is used to pay both income
tax and self-employment tax, as well as other
Who Must Pay Estimated 2023 or 2024 is from farming or fishing, substi-
tute 662/3% for 90% in (2a) under the General
taxes and amounts reported on your tax return. Tax rule, earlier. If your AGI for 2023 was more than
If you don't pay enough tax, either through with- $150,000 ($75,000 if your filing status for 2024
holding or estimated tax, or a combination of If you owe additional tax for 2023, you may have
is married filing a separate return), substitute
both, you may have to pay a penalty. If you don't to pay estimated tax for 2024.
110% for 100% in (2b) under General rule, ear-
pay enough by the due date of each payment You can use the following general rule as a lier. See Figure 4-A and Pub. 505, chapter 2, for
period (see When To Pay Estimated Tax, later), guide during the year to see if you will have more information.
you may be charged a penalty even if you are enough withholding, or if you should increase
due a refund when you file your tax return. For your withholding or make estimated tax pay- Aliens. Resident and nonresident aliens may
information on when the penalty applies, see ments. also have to pay estimated tax. Resident aliens
Underpayment Penalty for 2023 at the end of should follow the rules in this chapter unless no-
General rule. In most cases, you must pay es- ted otherwise. Nonresident aliens should get
this chapter. timated tax for 2024 if both of the following ap- Form 1040-ES (NR), U.S. Estimated Tax for
ply. Nonresident Alien Individuals.

You are an alien if you aren’t a citizen or na- Tax on $40,100 based on a Fiscal year taxpayers. If your tax year doesn't
tional of the United States. You are a resident separate return . . . . . . . $4,595 start on January 1, see the Form 1040-ES in-
alien if you either have a green card or meet the Tax on $8,400 based on a structions for your payment due dates.
substantial presence test. For more information separate return . . . . . . . 843
about the substantial presence test, see Pub. Total . . . . . . . . . . . . . . . $5,438 When To Start
519, U.S. Tax Guide for Aliens.
Taxpayer A's percentage of You don't have to make estimated tax payments
Married taxpayers. If you qualify to make joint total ($4,595 ÷ $5,438) . . . 85% until you have income on which you will owe in-
estimated tax payments, apply the rules dis- Taxpayer A's share of tax on come tax. If you have income subject to estima-
cussed here to your joint estimated income. joint return ted tax during the first payment period, you
You and your spouse can make joint estima- ($5,383 × 85%) . . . . . . . $4,576 must make your first payment by the due date
ted tax payments even if you aren’t living to- for the first payment period. You can pay all your
gether. estimated tax at that time, or you can pay it in
However, you and your spouse can’t make How To Figure installments. If you choose to pay in install-
joint estimated tax payments if:
Estimated Tax ments, make your first payment by the due date
for the first payment period. Make your remain-
• You are legally separated under a decree
To figure your estimated tax, you must figure ing installment payments by the due dates for
of divorce or separate maintenance,
your expected adjusted gross income (AGI), the later periods.
• You and your spouse have different tax taxable income, taxes, deductions, and credits
years, or No income subject to estimated tax during
for the year. first period. If you don't have income subject
• Either spouse is a nonresident alien (un- When figuring your 2024 estimated tax, it to estimated tax until a later payment period,
less that spouse elected to be treated as a may be helpful to use your income, deductions, you must make your first payment by the due
resident alien for tax purposes (see chap- and credits for 2023 as a starting point. Use date for that period. You can pay your entire es-
ter 1 of Pub. 519)). your 2023 federal tax return as a guide. You can timated tax by the due date for that period or
If you and your spouse can’t make estimated use Form 1040-ES and Pub. 505 to figure your you can pay it in installments by the due date for
tax payments, apply these rules to your sepa- estimated tax. Nonresident aliens use Form that period and the due dates for the remaining
rate estimated income. Making joint or separate 1040-ES (NR) and Pub. 505 to figure estimated periods.
estimated tax payments won't affect your choice tax (see chapter 8 of Pub. 519 for more informa-
of filing a joint tax return or separate returns for tion). Table 4-1. General Due Dates for
2024. You must make adjustments both for Estimated Tax
changes in your own situation and for recent Installment Payments
2023 separate returns and 2024 joint re- changes in the tax law. For a discussion of
turn. If you plan to file a joint return with your these changes, visit IRS.gov.
spouse for 2024 but you filed separate returns If you first Make Make later
For more complete information on how to have income installments installments
for 2023, your 2023 tax is the total of the tax figure your estimated tax for 2024, see chap- on which you by:* by:*
shown on your separate returns. You filed a ter 2 of Pub. 505. must pay
separate return if you filed as single, head of
estimated tax:
household, or married filing separately.
2023 joint return and 2024 separate re-
When To Pay Estimated Before April 1 April 15 June 15
Sept. 15
turns. If you plan to file a separate return for Tax Jan. 15, next
2024 but you filed a joint return for 2023, your year
2023 tax is your share of the tax on the joint re- For estimated tax purposes, the tax year is divi-
ded into four payment periods. Each period has April 1–May 31 June 15 Sept. 15
turn. You file a separate return if you file as sin-
a specific payment due date. If you don't pay Jan. 15, next
gle, head of household, or married filing sepa-
enough tax by the due date of each payment year
rately.
To figure your share of the tax on the joint re- period, you may be charged a penalty even if June 1–Aug. 31 Sept. 15 Jan. 15, next
turn, first figure the tax both you and your you are due a refund when you file your income year
spouse would have paid had you filed separate tax return. The payment periods and due dates
After Aug. 31 Jan. 15, next (None)
returns for 2023 using the same filing status as for estimated tax payments are shown next.
year
for 2024. Then, multiply the tax on the joint re-
turn by the following fraction. For the period: Due date:*
*See Saturday, Sunday, holiday rule and January
payment.
Jan. 1–March 31 . . . . . . April 15
April 1–May 31 . . . . . . . June 17 How much to pay to avoid a penalty. To de-
The tax you would have paid had June 1–August 31 . . . . . Sept. 16
termine how much you should pay by each pay-
you filed a separate return Sept. 1–Dec. 31 . . . . . . Jan. 15, next year
ment due date, see How To Figure Each Pay-
The total tax you and your ment next.
spouse would have paid had
.
*See Saturday, Sunday, holiday rule and January
you filed separate returns
payment. How To Figure
Example. Taxpayer A and Taxpayer B filed
Each Payment
a joint return for 2023 showing taxable income Saturday, Sunday, holiday rule. If the due
You should pay enough estimated tax by the
of $48,500 and tax of $5,383. Of the $48,500 date for an estimated tax payment falls on a
due date of each payment period to avoid a
taxable income, $40,100 was Taxpayer A’s and Saturday, Sunday, or legal holiday, the payment
penalty for that period. You can figure your re-
the rest was Taxpayer B's. For 2024, they plan will be on time if you make it on the next day
quired payment for each period by using either
to file married filing separately. Taxpayer A fig- that isn't a Saturday, Sunday, or legal holiday.
the regular installment method or the annual-
ures tax on the 2023 joint return as follows. January payment. If you file your 2024 Form ized income installment method. These meth-
1040 or 1040-SR by January 31, 2025, and pay ods are described in chapter 2 of Pub. 505. If
the rest of the tax you owe, you don't need to you don't pay enough during each payment pe-
make the payment due on January 15, 2025. riod, you may be charged a penalty even if you
are due a refund when you file your tax return.
If the earlier discussion of No income sub-
ject to estimated tax during first period or the

later discussion of Change in estimated tax ap- secure, and helps make sure we get your pay- communications Relay Services (TRS) for peo-
plies to you, you may benefit from reading An- ments on time. To pay your taxes online or for ple who are deaf, hard of hearing, or have a
nualized Income Installment Method in chap- more information, go to IRS.gov/Payments. You speech disability, dial 711 and then provide the
ter 2 of Pub. 505 for information on how to avoid can pay using any of the following methods. TRS assistant the 800-555-4477 number above
a penalty. or 800-733-4829. Additional information about
• IRS Direct Pay. For online transfers di-
EFTPS is also available in Pub. 966.
Underpayment penalty. Under the regular in- rectly from your checking or savings ac-
stallment method, if your estimated tax payment count at no cost to you, go to IRS.gov/
for any period is less than one-fourth of your es- Payments. Pay by Mobile Device
timated tax, you may be charged a penalty for • Pay by Card or Digital Wallet. To pay by To pay through your mobile device, download
underpayment of estimated tax for that period debit or credit card or digital wallet, go to the IRS2Go application.
when you file your tax return. Under the annual- IRS.gov/Payments. A fee is charged by
ized income installment method, your estimated these service providers.You can also pay
tax payments vary with your income, but the
Pay by Cash
by phone with a debit or credit card. See
amount required must be paid each period. See Cash is an in-person payment option for individ-
Debit or credit card under Pay by Phone,
Instructions for Form 2210 for more information. uals provided through retail partners with a
later.
maximum of $1,000 per day per transaction. To
Change in estimated tax. After you make an • Electronic Funds Withdrawal (EFW). make a cash payment, you must choose a pay-
estimated tax payment, changes in your in- This is an integrated e-file/e-pay option of- ment processor online with ACI Payments, Inc.
come, adjustments, deductions, or credits may fered only when filing your federal taxes at fed.acipayonline.com or www.Pay1040.com,
make it necessary for you to refigure your esti- electronically using tax preparation soft- our official payment provider. For more informa-
mated tax. Pay the unpaid balance of your ware, through a tax professional, or the IRS tion, go to IRS.gov/paywithcash or see Pub
amended estimated tax by the next payment at IRS.gov/OPA. 5250. Don't send cash payments through the
due date after the change or in installments by mail.
that date and the due dates for the remaining • Online Payment Agreement. If you can’t
payment periods. pay in full by the due date of your tax re-
turn, you can apply for an online monthly Pay by Check or Money Order
installment agreement at IRS.gov/ Using the Estimated Tax
Estimated Tax Payments Payments. Once you complete the online
Not Required Payment Voucher
process, you will receive immediate notifi-
cation of whether your agreement has Before submitting a payment through the mail
You don't have to pay estimated tax if your with-
been approved. A user fee is charged. using the estimated tax payment voucher,
holding in each payment period is at least as
please consider alternative methods. One of
much as: • IRS2GO. This is the mobile application of our safe, quick, and easy electronic payment
• One-fourth of your required annual pay- the IRS. You can access Direct Pay or Pay options might be right for you.
ment, or By Card by downloading the application.
If you choose to mail in your payment, each
• Your required annualized income install- payment of estimated tax by check or money or-
ment for that period. Electronic Federal Tax Payment der must be accompanied by a payment
System (EFTPS) voucher from Form 1040-ES.
You also don't have to pay estimated tax if you
This system allows you to pay your taxes online During 2023, if you:
will pay enough through withholding to keep the
amount you owe with your return under $1,000. or by phone directly from your checking or sav- • Made at least one estimated tax payment
ing account.There is no fee for this service. You but not by electronic means,
must be enrolled either online or have an enroll-
How To Pay Estimated Tax ment form mailed to you. See EFTPS under Pay
• Didn't use software or a paid preparer to
prepare or file your return,
by Phone, later.
There are several ways to pay estimated tax. then you should receive a copy of the 2024
• Credit an overpayment on your 2023 return Pay by Phone Form 1040-ES with payment vouchers.
to your 2024 estimated tax. The enclosed payment vouchers will be pre-
Paying by phone is another safe and secure printed with your name, address, and social se-
• Pay by direct transfer from your bank ac- method of paying electronically. Use one of the curity number. Using the preprinted vouchers
count, or pay by debit or credit card using a following methods: (1) call one of the debit or will speed processing, reduce the chance of er-
pay-by-phone system or the Internet. credit card providers, or (2) use the Electronic ror, and help save processing costs.
• Send in your payment (check or money or- Federal Tax Payment System (EFTPS) to pay
Use the window envelopes that came with
der) with a payment voucher from Form directly from your checking or savings account.
your Form 1040-ES package. If you use your
1040-ES. Debit or credit card. Call one of our service own envelopes, make sure you mail your pay-
providers. Each charges a fee that varies by ment vouchers to the address shown in the
Credit an Overpayment provider, card type, and payment amount. Form 1040-ES instructions for the place where
you live.
If you show an overpayment of tax after com-
WorldPay US, Inc.
pleting your Form 1040 or 1040-SR for 2023,
844-PAY-TAX-8TM (844-729-8298) No checks of $100 million or more accep-
you can apply part or all of it to your estimated
www.payUSAtax.com ted. The IRS can’t accept a single check (in-
tax for 2024. On line 36 of Form 1040 or
cluding a cashier’s check) for amounts of
1040-SR, enter the amount you want credited to
ACI Payments, Inc. (Formerly Official $100,000,000 ($100 million) or more. If you are
your estimated tax rather than refunded. Take
Payments) sending $100 million or more by check, you’ll
the amount you have credited into account
888-272-9829 need to spread the payment over two or more
when figuring your estimated tax payments.
www.fed.acipayonline.com checks with each check made out for an
You can’t have any of the amount you credi- amount less than $100 million. This limit doesn’t
ted to your estimated tax refunded to you until apply to other methods of payment (such as
you file your tax return for the following year. You Link2Gov Corporation electronic payments). Please consider a
also can’t use that overpayment in any other 888-PAY-1040TM (888-729-1040) method of payment other than check if the
way. www.PAY1040.com amount of the payment is over $100 million.
Pay Online EFTPS. To get more information about EFTPS Note. These criteria can change without no-
The IRS offers an electronic payment option or to enroll in EFTPS, visit EFTPS.gov or call tice. If you don't receive a Form 1040-ES pack-
that is right for you. Paying online is convenient, 800-555-4477. To contact EFTPS using Tele- age and you are required to make an estimated

tax payment, you should go to IRS.gov/ also receive copies to file with your state and lo- Corrected Wage and Tax Statement, is used to
Form1040ES and print a copy of Form 1040-ES cal returns. correct a Form W-2.
that includes four blank payment vouchers. In certain situations, you will receive two
Complete one of these and make your payment Form W-2 forms in place of the original incorrect form. This
timely to avoid penalties for paying late. will happen when your taxpayer identification
Your employer is required to provide or send number is wrong or missing, your name and ad-
Don't use the address shown in the In- Form W-2 to you no later than January 31, dress are wrong, or you received the wrong
! structions for Form 1040 for your esti- 2024. You should receive a separate Form W-2 type of form (for example, a Form 1099-DIV,
mated tax payments. from each employer you worked for. Dividends and Distributions, instead of a Form
CAUTION
If you didn't pay estimated tax last year, you If you stopped working before the end of 1099-INT, Interest Income). One new form you
can order Form 1040-ES from the IRS (see the 2023, your employer could have given you your receive will be the same incorrect form or have
inside back cover of this publication) or down- Form W-2 at any time after you stopped work- the same incorrect information, but all money
load it from IRS.gov. Follow the instructions to ing. However, your employer must provide or amounts will be zero. This form will have an “X”
make sure you use the vouchers correctly. send it to you by January 31, 2024. in the “CORRECTED” box at the top of the form.
If you ask for the form, your employer must The second new form should have all the cor-
Joint estimated tax payments. If you file a send it to you within 30 days after receiving your rect information, prepared as though it is the
joint return and are making joint estimated tax written request or within 30 days after your final original (the “CORRECTED” box won't be
payments, enter the names and social security wage payment, whichever is later. checked).
numbers on the payment voucher in the same
If you haven't received your Form W-2 by
order as they will appear on the joint return.
January 31, you should ask your employer for it.
Form Received After Filing
Change of address. You must notify the IRS if If you don't receive it by early February, call the
you are making estimated tax payments and IRS. If you file your return and you later receive a
you changed your address during the year. Form W-2 shows your total pay and other form for income that you didn't include on your
Complete Form 8822, Change of Address, and compensation and the income tax, social secur- return, you should report the income and take
mail it to the address shown in the instructions ity tax, and Medicare tax that was withheld dur- credit for any income tax withheld by filing Form
for that form. ing the year. Include the federal income tax 1040-X, Amended U.S. Individual Income Tax
withheld (as shown in box 2 of Form W-2) on Return.
Credit for Withholding Form 1040 or 1040-SR, line 25a.

In addition, Form W-2 is used to report any Separate Returns
and Estimated Tax taxable sick pay you received and any income If you are married but file a separate return, you
for 2023 tax withheld from your sick pay. can take credit only for the tax withheld from
your own income. Don't include any amount
When you file your 2023 income tax return, take Form W-2G withheld from your spouse's income. However,
credit for all the income tax and excess social different rules may apply if you live in a com-
If you had gambling winnings in 2023, the payer
security or railroad retirement tax withheld from munity property state.
may have withheld income tax. If tax was with-
your salary, wages, pensions, etc. Also take held, the payer will give you a Form W-2G Community property states are listed in
credit for the estimated tax you paid for 2023. showing the amount you won and the amount of chapter 2. For more information on these rules,
These credits are subtracted from your total tax. tax withheld. and some exceptions, see Pub. 555, Commun-
Because these credits are refundable, you ity Property.
Report the amounts you won on Schedule 1
should file a return and claim these credits, (Form 1040). Take credit for the tax withheld on
even if you don't owe tax. Form 1040 or 1040-SR, line 25c. Estimated Tax
Two or more employers. If you had two or
Take credit for all your estimated tax payments
more employers in 2023 and were paid wages The 1099 Series
for 2023 on Form 1040 or 1040-SR, line 26. In-
of more than $160,200, too much social secur- Most forms in the 1099 series aren’t filed with clude any overpayment from 2022 that you had
ity or tier 1 railroad retirement tax may have your return. These forms should be furnished to credited to your 2023 estimated tax.
been withheld from your pay. You may be able you by January 31, 2024 (or, for Forms 1099-B,
to claim the excess as a credit against your in- 1099-S, and certain Forms 1099-MISC, by Feb- Name changed. If you changed your name,
come tax when you file your return. See the In- ruary 15, 2024). Unless instructed to file any of and you made estimated tax payments using
structions for Form 1040 for more information. these forms with your return, keep them for your your old name, attach a brief statement to the
records. There are several different forms in this front of your paper tax return indicating:
Withholding series, which are not listed. See the instructions • When you made the payments,
for the specific Form 1099 for more information.
If you had income tax withheld during 2023, you
• The amount of each payment,
Form 1099-R. Attach Form 1099-R to your pa-
should be sent a statement by January 31, • Your name when you made the payments,
per return if box 4 shows federal income tax and
2024, showing your income and the tax with-
withheld. Include the amount withheld in the to-
held. Depending on the source of your income, • Your social security number.
tal on line 25b of Form 1040 or 1040-SR.
you should receive:
Backup withholding. If you were subject to The statement should cover payments you
• Form W-2, Wage and Tax Statement; made jointly with your spouse as well as any
backup withholding on income you received
• Form W-2G, Certain Gambling Winnings; during 2023, include the amount withheld, as you made separately.
or shown on your Form 1099, in the total on Be sure to report the change to the Social
line 25b of Form 1040 or 1040-SR. Security Administration. This prevents delays in
• A form in the 1099 series.
processing your return and issuing any refunds.
Forms W-2 and W-2G. If you file a paper re-
turn, always file Form W-2 with your income tax Form Not Correct
Separate Returns
return. File Form W-2G with your return only if it If you receive a form with incorrect information
shows any federal income tax withheld from on it, you should ask the payer for a corrected If you and your spouse made separate estima-
your winnings. form. Call the telephone number or write to the ted tax payments for 2023 and you file separate
You should get at least two copies of each address given for the payer on the form. The returns, you can take credit only for your own
form. If you file a paper return, attach one copy corrected Form W-2G or Form 1099 you receive payments.
to the front of your federal income tax return. will have an “X” in the “CORRECTED” box at the If you made joint estimated tax payments,
Keep one copy for your records. You should top of the form. A special form, Form W-2c, you must decide how to divide the payments
between your returns. One of you can claim all

of the estimated tax paid and the other none, or • Your total 2023 tax minus your withholding
you can divide it in any other way you agree on. Underpayment Penalty and refundable credits is less than $1,000;
If you can’t agree, you must divide the pay-
ments in proportion to each spouse's individual for 2023 • You didn't have a tax liability for 2022 and
your 2022 tax year was 12 months; or
tax as shown on your separate returns for 2023.
If you didn't pay enough tax, either through with- • You didn't have any withholding taxes and
holding or by making timely estimated tax pay- your current year tax less any household
Divorced Taxpayers ments, you will have an underpayment of esti- employment taxes is less than $1,000.
If you made joint estimated tax payments for mated tax and you may have to pay a penalty.
2023, and you were divorced during the year, Farmers and fishermen. Special rules apply if
either you or your former spouse can claim all of Generally, you won't have to pay a penalty you are a farmer or fisherman. See the Instruc-
the joint payments, or you each can claim part for 2023 if any of the following apply. tions for Form 2210-F for more information.
of them. If you can’t agree on how to divide the • The total of your withholding and estimated IRS can figure the penalty for you. If you
payments, you must divide them in proportion to tax payments was at least as much as your think you owe the penalty but you don't want to
each spouse's individual tax as shown on your 2022 tax (or 110% of your 2022 tax if your figure it yourself when you file your tax return,
separate returns for 2023. AGI was more than $150,000, $75,000 if you may not have to. Generally, the IRS will fig-
If you claim any of the joint payments on your 2023 filing status is married filing sep- ure the penalty for you and send you a bill. How-
your tax return, enter your former spouse's so- arately) and you paid all required estima- ever, if you think you are able to lower or elimi-
cial security number (SSN) in the space provi- ted tax payments on time; nate your penalty, you must complete Form
ded on the front of Form 1040 or 1040-SR. If • The tax balance due on your 2023 return is 2210 or Form 2210-F and attach it to your paper
you divorced and remarried in 2023, enter your no more than 10% of your total 2023 tax, return. See Instructions for Form 2210 for more
present spouse's SSN in the space provided on and you paid all required estimated tax information.
the front of Form 1040 or 1040-SR. Also, on the payments on time;
dotted line next to line 26, enter your former
spouse’s SSN, followed by “DIV.”

Part Two.
The five chapters in this part discuss many kinds of income and
Income and adjustments to income. They explain which income is and isn’t taxed and
discuss some of the adjustments to income that you can make in figuring
Adjustments to your adjusted gross income.
Income The Form 1040 and Form 1040-SR schedules that are discussed in these
chapters are:
• Schedule 1, Additional Income and Adjustments to Income;
• Schedule 2 (Part II), Other Taxes; and
• Schedule 3 (Part II), Other Payments and Refundable Credits.
Table V. Other Adjustments to Income

Use this table to find information about other adjustments to income not covered in this part of the publication.
IF you are looking for more information about the THEN see...
deduction for...
contributions to a health savings account Pub. 969, Health Savings Accounts and Other Tax-Favored
Health Plans.
moving expenses Pub. 3, Armed Forces’ Tax Guide.
part of your self-employment tax chapter 11.
self-employed health insurance Pub. 502, Medical and Dental Expenses.
payments to self-employed SEP, SIMPLE, and qualified plans Pub. 560, Retirement Plans for Small Business.
penalty on the early withdrawal of savings chapter 6.
contributions to an Archer MSA Pub. 969.
reforestation amortization or expense chapters 4 and 7 of Pub. 225, Farmer's Tax Guide.
contributions to Internal Revenue Code section 501(c)(18)(D) Pub. 525, Taxable and Nontaxable Income.
pension plans
expenses from the rental of personal property chapter 8.
certain required repayments of supplemental unemployment chapter 8.
benefits (sub-pay)
foreign housing costs chapter 4 of Pub. 54, Tax Guide for U.S. Citizens and Resident
Aliens Abroad.
jury duty pay given to your employer chapter 8.
contributions by certain ministers or chaplains to Internal Pub. 517, Social Security and Other Information for Members of
Revenue Code section 403(b) plans the Clergy and Religious Workers.
attorney fees and certain costs for actions involving IRS awards Pub. 525.
to whistleblowers

1040) if you're self-employed. Also, see Pub.
Employee 926 for more information.
5. Compensation
Miscellaneous
This section discusses various types of em- Compensation
Wages, Salaries, ployee compensation, including fringe benefits,
retirement plan contributions, stock options, This section discusses different types of em-
and restricted property. ployee compensation.
and Other Form W-2. If you’re an employee, you should Advance commissions and other earnings.
receive a Form W-2 from your employer show- If you receive advance commissions or other
Earnings ing the pay you received for your services. In-
clude your pay on Form 1040 or 1040-SR,
amounts for services to be performed in the fu-
ture and you’re a cash-method taxpayer, you
line 1a, even if you don’t receive a Form W-2. must include these amounts in your income in
In some instances, your employer isn’t re- the year you receive them.
What’s New quired to give you a Form W-2. Your employer If you repay unearned commissions or other
isn’t required to give you a Form W-2 if you per- amounts in the same year you receive them, re-
Deferred compensation contribution limit form household work in your employer's home duce the amount included in your income by the
increased. If you participate in a 401(k) plan, for less than $2,600 in cash wages during the repayment. If you repay them in a later tax year,
403(b) plan, or the federal government's Thrift calendar year and you have no federal income you can deduct the repayment as an itemized
Savings Plan, the total annual amount you can taxes withheld from your wages. Household deduction on your Schedule A (Form 1040),
contribute is increased to $22,500 ($30,000 if work is work done in or around an employer's line 16, or you may be able to take a credit for
age 50 or older) for 2023. This also applies to home. Some examples of workers who do that year. See Repayments in chapter 8.
most 457 plans. household work are:
Allowances and reimbursements. If you re-
Health flexible spending arrangements
• Babysitters, ceive travel, transportation, or other business
(health FSAs) under cafeteria plans. For tax • Caretakers, expense allowances or reimbursements from
years beginning in 2023, the dollar limitation un- your employer, see Pub. 463, Travel, Gift, and
• House cleaning workers, Car Expenses. If you’re a member of the military
der section 125(i) on voluntary employee salary
reductions for contributions to health FSAs is • Domestic workers, and you’re reimbursed for moving expenses,
$3,050. see Pub. 521, Moving Expenses.
• Drivers,
• Health aides, Back pay awards. If you receive an amount in
payment of a settlement or judgment for back
Introduction • Housekeepers, pay, you must include the amount of the pay-
• Maids, ment in your income. This includes payments
This chapter discusses compensation received
made to you for damages, unpaid life insurance
for services as an employee, such as wages, • Nannies, premiums, and unpaid health insurance premi-
salaries, and fringe benefits. The following top-
ics are included.
• Private nurses, and ums. They should be reported to you by your
employer on Form W-2.
• Bonuses and awards. • Yard workers.
See Schedule H (Form 1040), Household Bonuses and awards. If you receive a bonus
• Special rules for certain employees. Employment Taxes, and its instructions, and or award (cash, goods, services, etc.) from your
• Sickness and injury benefits. Pub. 926 for more information. employer, you must include its value in your in-
come. However, if your employer merely prom-
The chapter explains what income is inclu- If you performed services, other than as an
ises to pay you a bonus or award at some future
ded and isn’t included in the employee's gross independent contractor, and your employer
time, it isn’t taxable until you receive it or it’s
income and what’s not included. didn’t withhold social security and Medicare
made available to you.
taxes from your pay, you must file Form 8919,
Uncollected Social Security and Medicare Tax Employee achievement award. If you re-
Useful Items on Wages, with your Form 1040 or 1040-SR. ceive tangible personal property (other than
You may want to see: See Form 8919 and its instructions for more in- cash, a gift certificate, or an equivalent item) as
formation on how to figure unreported wages an award for length of service or safety achieve-
Publication and taxes and how to include them on your in- ment, you can generally exclude its value from
come tax return. your income. The amount you can exclude is
463 Travel, Gift, and Car Expenses
limited to your employer's cost and can’t be
463
Childcare providers. If you provide childcare,

502 Medical and Dental Expenses more than $1,600 for qualified plan awards or
either in the child's home or in your home or
502
$400 for nonqualified plan awards for all such

524 Credit for the Elderly or the Disabled other place of business, the pay you receive
awards you receive during the year. Your em-
must be included in your income. If you aren’t
524
525 Taxable and Nontaxable Income ployer can tell you whether your award is a
an employee, you’re probably self-employed
qualified plan award. Your employer must make
525
526 Charitable Contributions and must include payments for your services on
the award as part of a meaningful presentation,
Schedule C (Form 1040), Profit or Loss From
526
550 Investment Income and Expenses under conditions and circumstances that don’t
Business. You generally aren’t an employee un-
create a significant likelihood of it being dis-
550
less you’re subject to the will and control of the

554 Tax Guide for Seniors guised pay.
person who employs you as to what you’re to do
554
However, the exclusion doesn’t apply to the

575 Pension and Annuity Income and how you’re to do it.
following awards.
575
907 Tax Highlights for Persons With

907
Babysitting. If you’re paid to babysit, even • A length-of-service award if you received it

Disabilities for relatives or neighborhood children, whether for less than 5 years of service or if you re-
926 Household Employer's Tax Guide on a regular basis or only periodically, the rules ceived another length-of-service award
for childcare providers apply to you. during the year or the previous 4 years.
926
3920 Tax Relief for Victims of Terrorist

Self-employment tax. Whether you're an em- • A safety achievement award if you’re a
3920
Attacks
ployee or self-employed person, your income manager, administrator, clerical employee,
For these and other useful items, go to IRS.gov/ could be subject to self-employment tax. See or other professional employee or if more
Forms. the instructions for Schedules C and SE (Form than 10% of eligible employees previously
Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 47

received safety achievement awards dur- accrued annual leave when you retire or resign, your taxable noncash fringe benefits. Your em-
ing the year. this amount will be included as wages on your ployer has the option to report taxable noncash
Form W-2. fringe benefits by using either of the following
Example. You received three employee If you resign from one agency and are reem- rules.
achievement awards during the year: a nonqua- ployed by another agency, you may have to re-
lified plan award of a watch valued at $250, two
• The general rule: benefits are reported for
pay part of your lump-sum annual leave pay-
a full calendar year (January 1–December
qualified plan awards of a stereo valued at ment to the second agency. You can reduce
31).
$1,000, and a set of golf clubs valued at $500. gross wages by the amount you repaid in the
Assuming that the requirements for qualified same tax year in which you received it. Attach to • The special accounting period rule: bene-
plan awards are otherwise satisfied, each award your tax return a copy of the receipt or state- fits provided during the last 2 months of the
by itself would be excluded from income. How- ment given to you by the agency you repaid to calendar year (or any shorter period) are
ever, because the $1,750 total value of the explain the difference between the wages on treated as paid during the following calen-
awards is more than $1,600, you must include the return and the wages on your Forms W-2. dar year. For example, each year your em-
$150 ($1,750 – $1,600) in your income. ployer reports the value of benefits provi-
Outplacement services. If you choose to ded during the last 2 months of the prior
Differential wage payments. This is any pay- accept a reduced amount of severance pay so year and the first 10 months of the current
ment made to you by an employer for any pe- that you can receive outplacement services year.
riod during which you are, for a period of more (such as training in résumé writing and inter-
than 30 days, an active duty member of the uni- Your employer doesn’t have to use the same ac-
view techniques), you must include the unre-
formed services and represents all or a portion counting period for each fringe benefit, but must
duced amount of the severance pay in income.
of the wages you would have received from the use the same period for all employees who re-
employer during that period. These payments Sick pay. Pay you receive from your employer ceive a particular benefit.
are treated as wages and are subject to income while you’re sick or injured is part of your salary You must use the same accounting period
tax withholding, but not FICA or FUTA taxes. or wages. In addition, you must include in your that you use to report the benefit to claim an
The payments are reported as wages on Form income sick pay benefits received from any of employee business deduction (for use of a car,
W-2. the following payers. for example).
Government cost-of-living allowances. • A welfare fund. Form W-2. Your employer must include all tax-
Most payments received by U.S. Government • A state sickness or disability fund. able fringe benefits in Form W-2, box 1, as wa-
civilian employees for working abroad are taxa- ges, tips, and other compensation and, if appli-
ble. However, certain cost-of-living allowances
• An association of employers or employees. cable, in boxes 3 and 5 as social security and
are tax free. Pub. 516, U.S. Government Civilian • An insurance company, if your employer Medicare wages. Although not required, your
Employees Stationed Abroad, explains the tax paid for the plan. employer may include the total value of fringe
treatment of allowances, differentials, and other benefits in box 14 (or on a separate statement).
However, if you paid the premiums on an acci-
special pay you receive for employment abroad. However, if your employer provided you with a
dent or health insurance policy yourself, the
vehicle and included 100% of its annual lease
Nonqualified deferred compensation plans. benefits you receive under the policy aren’t tax-
value in your income, the employer must sepa-
Your employer may report to you the total able. For more information, see Pub. 525, Taxa-
rately report this value to you in box 14 (or on a
amount of deferrals for the year under a non- ble and Nontaxable Income.
separate statement).
qualified deferred compensation plan on Form Social security and Medicare taxes paid by
W-2, box 12, using code Y. This amount isn’t in- employer. If you and your employer have an
cluded in your income. Accident or Health Plan
agreement that your employer pays your social
However, if at any time during the tax year, security and Medicare taxes without deducting In most cases, the value of accident or health
the plan fails to meet certain requirements, or them from your gross wages, you must report plan coverage provided to you by your employer
isn’t operated under those requirements, all the amount of tax paid for you as taxable wages isn’t included in your income. Benefits you re-
amounts deferred under the plan for the tax on your tax return. The payment is also treated ceive from the plan may be taxable, as ex-
year and all preceding tax years to the extent as wages for figuring your social security and plained later under Sickness and Injury Bene-
vested and not previously included in income Medicare taxes and your social security and fits.
are included in your income for the current year. Medicare benefits. However, these payments For information on the items covered in this
This amount is included in your wages shown aren’t treated as social security and Medicare section, other than long-term care coverage,
on Form W-2, box 1. It’s also shown on Form wages if you’re a household worker or a farm see Pub. 969, Health Savings Accounts and
W-2, box 12, using code Z. worker. Other Tax-Favored Health Plans.
Note received for services. If your employer Stock appreciation rights. Don’t include a Long-term care coverage. Contributions by
gives you a secured note as payment for your stock appreciation right granted by your em- your employer to provide coverage for long-term
services, you must include the fair market value ployer in income until you exercise (use) the care services generally aren’t included in your
(usually the discount value) of the note in your right. When you use the right, you’re entitled to income. However, contributions made through a
income for the year you receive it. When you a cash payment equal to the fair market value of flexible spending or similar arrangement offered
later receive payments on the note, a propor- the corporation's stock on the date of use minus by your employer must be included in your in-
tionate part of each payment is the recovery of the fair market value on the date the right was come. This amount will be reported as wages in
the fair market value that you previously inclu- granted. You include the cash payment in your Form W-2, box 1.
ded in your income. Don’t include that part income in the year you use the right. Contributions you make to the plan are dis-
again in your income. Include the rest of the cussed in Pub. 502, Medical and Dental Expen-
payment in your income in the year of payment. ses.
If your employer gives you a nonnegotiable Fringe Benefits
unsecured note as payment for your services, Archer MSA contributions. Contributions by
payments on the note that are credited toward Fringe benefits received in connection with the your employer to your Archer MSA generally
the principal amount of the note are compensa- performance of your services are included in aren’t included in your income. Their total will be
tion income when you receive them. your income as compensation unless you pay reported in Form W-2, box 12, with code R. You
fair market value for them or they’re specifically must report this amount on Form 8853, Archer
Severance pay. If you receive a severance excluded by law. Refraining from the perform- MSAs and Long-Term Care Insurance Con-
payment when your employment with your em- ance of services (for example, under a covenant tracts. File the form with your return.
ployer ends or is terminated, you must include not to compete) is treated as the performance
this amount in your income. Health flexible spending arrangement
of services for purposes of these rules.
(health FSA). If your employer provides a
Accrued leave payment. If you’re a federal Accounting period. You must use the same health FSA that qualifies as an accident or
employee and receive a lump-sum payment for accounting period your employer uses to report health plan, the amount of your salary
48 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2023)

reduction, and reimbursements of your medical it, you generally don’t include its value in your Two or more employers. Your exclusion for
care expenses, in most cases, aren’t included in income. In most cases, don’t include in your in- employer-provided group-term life insurance
your income. come the value of discounts at company cafete- coverage can’t exceed the cost of $50,000 of
rias, cab fares home when working overtime, coverage, whether the insurance is provided by
Note. Health FSAs are subject to a limit on and company picnics. a single employer or multiple employers. If two
salary reduction contributions for plan years be- or more employers provide insurance coverage
Holiday gifts. If your employer gives you a tur-
ginning after 2012. For tax years beginning in that totals more than $50,000, the amounts re-
key, ham, or other item of nominal value at
2023, the dollar limitation (as indexed for infla- ported as wages on your Forms W-2 won’t be
Christmas or other holidays, don’t include the
tion) on voluntary employee salary reductions correct. You must figure how much to include in
value of the gift in your income. However, if your
for contributions to health FSAs is $3,050. your income. Reduce the amount you figure by
employer gives you cash or a cash equivalent,
any amount reported in Form W-2, box 12, with
Health reimbursement arrangement (HRA). you must include it in your income.
code C, add the result to the wages reported in
If your employer provides an HRA that qualifies
box 1, and report the total on your return.
as an accident or health plan, coverage and re-
Educational Assistance
imbursements of your medical care expenses Figuring the taxable cost. Use Worksheet
generally aren’t included in your income. You can exclude from your income up to $5,250 5-1 to figure the amount to include in your in-
of qualified employer-provided educational as- come.
Health savings account (HSA). If you’re an sistance. For more information, see Pub. 970,
eligible individual, you and any other person, in- Tax Benefits for Education.
cluding your employer or a family member, can Worksheet 5-1. Figuring the
make contributions to your HSA. Contributions,
Group-Term Life Insurance Cost of Group-Term Life
other than employer contributions, are deducti- Insurance To Include in
ble on your return whether or not you itemize In most cases, the cost of up to $50,000 of
deductions. Contributions made by your em- group-term life insurance coverage provided to
Income
ployer aren’t included in your income. Distribu- you by your employer (or former employer) isn’t Keep for Your Records
tions from your HSA that are used to pay quali- included in your income. However, you must in- 1. Enter the total amount of
fied medical expenses aren’t included in your clude in income the cost of employer-provided your insurance coverage
income. Distributions not used for qualified insurance that is more than the cost of $50,000 from your
medical expenses are included in your income. of coverage reduced by any amount you pay to- employer(s) . . . . . . . . . . . . 1.
See Pub. 969 for the requirements of an HSA. ward the purchase of the insurance. 2. Limit on exclusion for
Contributions by a partnership to a bona fide For exceptions, see Entire cost excluded employer-provided
and Entire cost taxed, later. group-term life insurance
partner's HSA aren’t contributions by an em- coverage . . . . . . . . . . . . . . 2. 50,000
ployer. The contributions are treated as a distri- If your employer provided more than 3. Subtract line 2 from
bution of money and aren’t included in the part- $50,000 of coverage, the amount included in line 1 . . . . . . . . . . . . . . . . . 3.
ner's gross income. Contributions by a your income is reported as part of your wages in 4. Divide line 3 by $1,000.
partnership to a partner's HSA for services ren- Form W-2, box 1. Also, it’s shown separately in Figure to the nearest
dered are treated as guaranteed payments that box 12 with code C. tenth . . . . . . . . . . . . . . . . . 4.
are includible in the partner's gross income. In 5. Go to Table 5-1. Using your
Group-term life insurance. This insurance is age on the last day of the tax
both situations, the partner can deduct the con-
term life insurance protection (insurance for a year, find your age group in
tribution made to the partner's HSA.
fixed period of time) that: the left column, and enter the
Contributions by an S corporation to a 2% cost from the column on the
shareholder-employee's HSA for services ren- • Provides a general death benefit, right for your age
dered are treated as guaranteed payments and • Is provided to a group of employees, group . . . . . . . . . . . . . . . . 5.
are includible in the shareholder-employee's 6. Multiply line 4 by
gross income. The shareholder-employee can • Is provided under a policy carried by the line 5 . . . . . . . . . . . . . . . . . 6.
deduct the contribution made to the share- employer, and 7. Enter the number of full
holder-employee's HSA. • Provides an amount of insurance to each months of coverage at this
employee based on a formula that prevents cost . . . . . . . . . . . . . . . . . . 7.
Qualified HSA funding distribution. You 8. Multiply line 6 by
individual selection.
can make a one-time distribution from your indi- line 7 . . . . . . . . . . . . . . . . . 8.
vidual retirement account (IRA) to an HSA and 9. Enter the
Permanent benefits. If your group-term life
you generally won’t include any of the distribu- premiums you paid
insurance policy includes permanent benefits, per month . . . . . 9.
tion in your income.
such as a paid-up or cash surrender value, you 10. Enter the number
must include in your income, as wages, the cost of months you paid
Adoption Assistance of the permanent benefits minus the amount the
You may be able to exclude from your income you pay for them. Your employer should be able premiums . . . . . 10.
amounts paid or expenses incurred by your em- to tell you the amount to include in your income. 11. Multiply line 9 by
ployer for qualified adoption expenses in con- line 10 . . . . . . . . . . . . . . . . 11.
nection with your adoption of an eligible child. Accidental death benefits. Insurance that 12. Subtract line 11 from line 8.
provides accidental or other death benefits but Include this amount in
See the Instructions for Form 8839, Qualified your income as
Adoption Expenses, for more information. doesn’t provide general death benefits (travel
wages . . . . . . . . . . . . . . . 12.
Adoption benefits are reported by your em- insurance, for example) isn’t group-term life in-
ployer in Form W-2, box 12, with code T. They surance.
are also included as social security and Medi- Former employer. If your former employer
care wages in boxes 3 and 5. However, they provided more than $50,000 of group-term life
aren’t included as wages in box 1. To determine insurance coverage during the year, the amount
the taxable and nontaxable amounts, you must included in your income is reported as wages in
complete Part III of Form 8839. File the form Form W-2, box 1. Also, it’s shown separately in
with your return. box 12 with code C. Box 12 will also show the
amount of uncollected social security and Medi-
De Minimis (Minimal) Benefits care taxes on the excess coverage, with codes
M and N. You must pay these taxes with your in-
If your employer provides you with a product or
come tax return. Include them on Schedule 2
service and the cost of it is so small that it would
(Form 1040), line 13.
be unreasonable for the employer to account for

Table 5-1. Cost of $1,000 of Entire cost excluded. You aren’t taxed on the Exclusion limit. The exclusion for commuter
Group-Term Life Insurance for 1 cost of group-term life insurance if any of the fol- vehicle transportation and transit pass fringe
lowing circumstances apply. benefits can’t be more than $300 a month.
Month
1. You’re permanently and totally disabled The exclusion for the qualified parking fringe
and have ended your employment. benefit can’t be more than $300 a month.
Age Cost
If the benefits have a value that is more than
Under 25 . . . . . . . . . . . . . . . . . $ 0.05 2. Your employer is the beneficiary of the pol- these limits, the excess must be included in
25 through 29 . . . . . . . . . . . . . . 0.06 icy for the entire period the insurance is in your income.
30 through 34 . . . . . . . . . . . . . . 0.08 force during the tax year.
35 through 39 . . . . . . . . . . . . . . 0.09 Commuter highway vehicle. This is a high-
3. A charitable organization (defined in Pub. way vehicle that seats at least six adults (not in-
40 through 44 . . . . . . . . . . . . . . 0.10
526, Charitable Contributions) to which cluding the driver). At least 80% of the vehicle's
45 through 49 . . . . . . . . . . . . . . 0.15
contributions are deductible is the only mileage must reasonably be expected to be:
50 through 54 . . . . . . . . . . . . . . 0.23 beneficiary of the policy for the entire pe-
55 through 59 . . . . . . . . . . . . . . 0.43 riod the insurance is in force during the tax • For transporting employees between their
60 through 64 . . . . . . . . . . . . . . 0.66 year. (You aren’t entitled to a deduction for homes and workplace, and
65 through 69 . . . . . . . . . . . . . . 1.27 a charitable contribution for naming a • On trips during which employees occupy at
70 and above . . . . . . . . . . . . . . 2.06 charitable organization as the beneficiary least half of the vehicle's adult seating ca-
of your policy.) pacity (not including the driver).
Example. You are 51 years old and work 4. The plan existed on January 1, 1984, and: Transit pass. This is any pass, token, farecard,
for employers A and B. Both employers provide voucher, or similar item entitling a person to ride
group-term life insurance coverage for you for a. You retired before January 2, 1984,
mass transit (whether public or private) free or
the entire year. Your coverage is $35,000 with and were covered by the plan when
at a reduced rate or to ride in a commuter high-
employer A and $45,000 with employer B. You you retired, or
way vehicle operated by a person in the busi-
pay premiums of $4.15 a month under the em- b. You reached age 55 before January 2, ness of transporting persons for compensation.
ployer B group plan. You figure the amount to 1984, and were employed by the em-
include in your income as shown in Worksheet ployer or its predecessor in 1983. Qualified parking. This is parking provided to
5-1. Figuring the Cost of Group-Term Life Insur- an employee at or near the employer's place of
ance To Include in Income—Illustrated next. Entire cost taxed. You’re taxed on the entire business. It also includes parking provided on
cost of group-term life insurance if either of the or near a location from which the employee
following circumstances apply. commutes to work by mass transit, in a com-
Worksheet 5-1. Figuring the muter highway vehicle, or by carpool. It doesn’t
Cost of Group-Term Life • The insurance is provided by your em-
include parking at or near the employee's home.
ployer through a qualified employees' trust,
Insurance To Include in
such as a pension trust or a qualified annu-
Income—Illustrated
Keep for Your Records
ity plan. Retirement Plan
• You're a key employee and your employer's Contributions
1. Enter the total amount of plan discriminates in favor of key employ-
your insurance coverage ees. Your employer's contributions to a qualified re-
from your tirement plan for you aren’t included in income
employer(s) . . . . . . . . . . . . 1. 80,000 at the time contributed. (Your employer can tell
2. Limit on exclusion for Retirement Planning Services
you whether your retirement plan is qualified.)
employer-provided Generally, don’t include the value of qualified re-
group-term life insurance However, the cost of life insurance coverage in-
tirement planning services provided to you and cluded in the plan may have to be included. See
coverage . . . . . . . . . . . . . . 2. 50,000
your spouse by your employer's qualified retire- Group-Term Life Insurance, earlier, under
3. Subtract line 2 from
line 1 . . . . . . . . . . . . . . . . . 3. 30,000 ment plan. Qualified services include retirement Fringe Benefits.
planning advice, information about your em- If your employer pays into a nonqualified
4. Divide line 3 by $1,000.
Figure to the nearest ployer's retirement plan, and information about plan for you, you must generally include the
tenth . . . . . . . . . . . . . . . . . 4. 30.0 how the plan may fit into your overall individual contributions in your income as wages for the
5. Go to Table 5-1. Using your retirement income plan. You can’t exclude the tax year in which the contributions are made.
age on the last day of the tax value of any tax preparation, accounting, legal, However, if your interest in the plan isn’t trans-
year, find your age group in or brokerage services provided by your em-
the left column, and enter the ferable or is subject to a substantial risk of for-
ployer. feiture (you have a good chance of losing it) at
cost from the column on the
right for your age the time of the contribution, you don’t have to in-
group . . . . . . . . . . . . . . . . 5. 0.23 Transportation clude the value of your interest in your income
6. Multiply line 4 by If your employer provides you with a qualified until it’s transferable or is no longer subject to a
line 5 . . . . . . . . . . . . . . . . . 6. 6.90 substantial risk of forfeiture.
transportation fringe benefit, it can be excluded
7. Enter the number of full from your income, up to certain limits. A quali-
months of coverage at this For information on distributions from re-
cost . . . . . . . . . . . . . . . . . . 7. 12 fied transportation fringe benefit is: TIP tirement plans, see Pub. 575, Pension
8. Multiply line 6 by • Transportation in a commuter highway ve- and Annuity Income (or Pub. 721, Tax
line 7 . . . . . . . . . . . . . . . . . 8. 82.80 hicle (such as a van) between your home Guide to U.S. Civil Service Retirement Benefits,
9. Enter the and work place, if you’re a federal employee or retiree).
premiums you paid
per month . . . . . 9. 4.15 • A transit pass, or
10. Enter the number Elective deferrals. If you’re covered by certain
• Qualified parking. kinds of retirement plans, you can choose to
of months you paid
the Cash reimbursement by your employer for these have part of your compensation contributed by
premiums . . . . . 10. 12 expenses under a bona fide reimbursement ar- your employer to a retirement fund, rather than
11. Multiply line 9 by rangement is also excludable. However, cash have it paid to you. The amount you set aside
line 10 . . . . . . . . . . . . . . . . 11. 49.80 reimbursement for a transit pass is excludable (called an “elective deferral”) is treated as an
12. Subtract line 11 from line 8. only if a voucher or similar item that can be ex- employer contribution to a qualified plan. An
Include this amount in changed only for a transit pass isn’t readily elective deferral, other than a designated Roth
your income as available for direct distribution to you. contribution (discussed later), isn’t included in
wages . . . . . . . . . . . . . . . 12. 33.00
wages subject to income tax at the time

contributed. Rather, it’s subject to income tax of a designated Roth contribution. See Pub. 525 If you’re a member of a religious organiza-
when distributed from the plan. However, it’s infor a discussion of the tax treatment of excess tion and you give your outside earnings to the
cluded in wages subject to social security and deferrals. religious organization, you must still include the
Medicare taxes at the time contributed. earnings in your income. However, you may be
Elective deferrals include elective contribu- Catch-up contributions. You may be al- entitled to a charitable contribution deduction
tions to the following retirement plans. lowed catch-up contributions (additional elec- for the amount paid to the organization. See
tive deferral) if you’re age 50 or older by the end Pub. 526.
1. Cash or deferred arrangements (section of the tax year.
401(k) plans). Pension. A pension or retirement pay for a
member of the clergy is usually treated as any
2. The Thrift Savings Plan for federal employ-
ees.
Stock Options other pension or annuity. It must be reported on
lines 5a and 5b of Form 1040 or 1040-SR.
3. Salary reduction simplified employee pen- If you receive a nonstatutory option to buy or
Housing. Special rules for housing apply to
sion plans (SARSEP). sell stock or other property as payment for your
members of the clergy. Under these rules, you
services, you will usually have income when
4. Savings incentive match plans for employ- don’t include in your income the rental value of
you receive the option, when you exercise the
ees (SIMPLE plans). a home (including utilities) or a designated
option (use it to buy or sell the stock or other
housing allowance provided to you as part of
5. Tax-sheltered annuity plans (section property), or when you sell or otherwise dispose
your pay. However, the exclusion can’t be more
403(b) plans). of the option. However, if your option is a statu-
than the reasonable pay for your services. If you
tory stock option, you won’t have any income
6. Section 501(c)(18)(D) plans. pay for the utilities, you can exclude any allow-
until you sell or exchange your stock. Your em-
ance designated for utility cost, up to your ac-
7. Section 457 plans. ployer can tell you which kind of option you
tual cost. The home or allowance must be provi-
hold. For more information, see Pub. 525.
Qualified automatic contribution arrange- ded as compensation for your services as an
ments. Under a qualified automatic contribu- ordained, licensed, or commissioned minister.
tion arrangement, your employer can treat you Restricted Property However, you must include the rental value of
as having elected to have a part of your com- the home or the housing allowance as earnings
pensation contributed to a section 401(k) plan. In most cases, if you receive property for your from self-employment on Schedule SE (Form
You are to receive written notice of your rights services, you must include its fair market value 1040) if you’re subject to the self-employment
and obligations under the qualified automatic in your income in the year you receive the prop- tax. For more information, see Pub. 517, Social
contribution arrangement. The notice must ex- erty. However, if you receive stock or other Security and Other Information for Members of
plain: property that has certain restrictions that affect the Clergy and Religious Workers.
its value, you don’t include the value of the
• Your rights to elect not to have elective
contributions made, or to have contribu-
property in your income until it has substantially
vested. (Although you can elect to include the
Members of Religious
tions made at a different percentage; and
value of the property in your income in the year Orders
• How contributions made will be invested in it’s transferred to you.) For more information,
the absence of any investment decision by see Restricted Property in Pub. 525. If you’re a member of a religious order who has
you. taken a vow of poverty, how you treat earnings
Dividends received on restricted stock. that you renounce and turn over to the order de-
You must be given a reasonable period of Dividends you receive on restricted stock are pends on whether your services are performed
time after receipt of the notice and before the treated as compensation and not as dividend for the order.
first elective contribution is made to make an income. Your employer should include these
election with respect to the contributions. payments on your Form W-2. Services performed for the order. If you’re
performing the services as an agent of the order
Overall limit on deferrals. For 2023, in in the exercise of duties required by the order,
Stock you elected to include in income.
most cases, you shouldn’t have deferred more don’t include in your income the amounts turned
Dividends you receive on restricted stock you
than a total of $22,500 of contributions to the over to the order.
elected to include in your income in the year
plans listed in (1) through (3) and (5) above. If your order directs you to perform services
transferred are treated the same as any other
The limit for SIMPLE plans is $15,500. The limit for another agency of the supervising church or
dividends. Report them on your return as divi-
for section 501(c)(18)(D) plans is the lesser of an associated institution, you’re considered to
dends. For a discussion of dividends, see Pub.
$7,000 or 25% of your compensation. The limit be performing the services as an agent of the
550, Investment Income and Expenses.
for section 457 plans is the lesser of your in- order. Any wages you earn as an agent of an or-
For information on how to treat dividends re-
cludible compensation or $22,500. Amounts der that you turn over to the order aren’t inclu-
ported on both your Form W-2 and Form
deferred under specific plan limits are part of ded in your income.
1099-DIV, see Dividends received on restricted
the overall limit on deferrals.
stock in Pub. 525.
Designated Roth contributions. Employ- Example. You’re a member of a church or-
ers with section 401(k) plans, section 403(b)
plans, and governmental section 457 plans can
Special Rules for der and have taken a vow of poverty. You re-
nounce any claims to your earnings and turn
create qualified Roth contribution programs so Certain Employees over to the order any salaries or wages you
earn. You’re a registered nurse, so your order
that you may elect to have part or all of your
elective deferrals to the plan designated as af- This section deals with special rules for people assigns you to work in a hospital that is an as-
ter-tax Roth contributions. Designated Roth in certain types of employment: members of the sociated institution of the church. However, you
contributions are treated as elective deferrals, clergy, members of religious orders, people remain under the general direction and control
except that they’re included in income at the working for foreign employers, military person- of the order. You’re considered to be an agent of
time contributed. nel, and volunteers. the order and any wages you earn at the hospi-
tal that you turn over to your order aren’t inclu-
Excess deferrals. Your employer or plan ded in your income.
administrator should apply the proper annual Clergy Services performed outside the order. If
limit when figuring your plan contributions. How-
you’re directed to work outside the order, your
ever, you’re responsible for monitoring the total Generally, if you’re a member of the clergy, you
services aren’t an exercise of duties required by
you defer to ensure that the deferrals aren’t must include in your income offerings and fees
the order unless they meet both of the following
more than the overall limit. you receive for marriages, baptisms, funerals,
requirements.
If you set aside more than the limit, the ex- masses, etc., in addition to your salary. If the of-
cess must generally be included in your income fering is made to the religious institution, it isn’t • They’re the kind of services that are ordina-
for that year, unless you have an excess deferral taxable to you. rily the duties of members of the order.

• They’re part of the duties that you must ex- rules may apply. See Foreign Employer in Pub. • Any bonus payment by a state or political
ercise for, or on behalf of, the religious or- 525. subdivision because of service in a combat
der as its agent. zone.
Employment abroad. For information on the
If you’re an employee of a third party, the serv- tax treatment of income earned abroad, see
ices you perform for the third party won’t be Pub. 54. Volunteers
considered directed or required of you by the
order. Amounts you receive for these services The tax treatment of amounts you receive as a
are included in your income, even if you have Military volunteer worker for the Peace Corps or similar
taken a vow of poverty. agency is covered in the following discussions.
Payments you receive as a member of a military
service are generally taxed as wages except for Peace Corps. Living allowances you receive
Example. You are a member of a religious
retirement pay, which is taxed as a pension. Al- as a Peace Corps volunteer or volunteer leader
order and have taken a vow of poverty. You re-
lowances generally aren’t taxed. For more infor- for housing, utilities, household supplies, food,
nounce all claims to your earnings and turn over
mation on the tax treatment of military allowan- and clothing are generally exempt from tax.
your earnings to the order.
You are a schoolteacher. You were instruc- ces and benefits, see Pub. 3, Armed Forces' Taxable allowances. The following allow-
ted by the superiors of the order to get a job Tax Guide. ances, however, must be included in your in-
with a private tax-exempt school. You became Differential wage payments. Any payments come and reported as wages.
an employee of the school, and, at your re-
quest, the school made the salary payments di-
made to you by an employer during the time • Allowances paid to your spouse and minor
you’re performing service in the uniformed serv- children while you’re a volunteer leader
rectly to the order. ices are treated as compensation. These wages training in the United States.
Because you are an employee of the school, are subject to income tax withholding and are
you’re performing services for the school rather reported on a Form W-2. See the discussion
• Living allowances designated by the Direc-
than as an agent of the order. The wages you tor of the Peace Corps as basic compen-
under Miscellaneous Compensation, earlier.
earn working for the school are included in your sation. These are allowances for personal
income. Military retirement pay. If your retirement pay items such as domestic help, laundry and
is based on age or length of service, it’s taxable clothing maintenance, entertainment and
and must be included in your income as a pen- recreation, transportation, and other mis-
Foreign Employer sion on lines 5a and 5b of Form 1040 or cellaneous expenses.
1040-SR. Don’t include in your income the
Special rules apply if you work for a foreign em- • Leave allowances.
amount of any reduction in retirement or re-
ployer. • Readjustment allowances or termination
tainer pay to provide a survivor annuity for your
U.S. citizen. If you’re a U.S. citizen who works spouse or children under the Retired Service- payments. These are considered received
in the United States for a foreign government, man's Family Protection Plan or the Survivor by you when credited to your account.
an international organization, a foreign em- Benefit Plan.
bassy, or any foreign employer, you must in- For more detailed discussion of survivor an- Example. You are a Peace Corps volun-
clude your salary in your income. nuities, see Pub. 575, Pension and Annuity In- teer and get $175 a month as a readjustment al-
come. lowance during your period of service, to be
Social security and Medicare taxes. paid to you in a lump sum at the end of your tour
You’re exempt from social security and Medi- of duty. Although the allowance isn’t available to
Disability. If you’re retired on disability, see
care employee taxes if you’re employed in the you until the end of your service, you must in-
Military and Government Disability Pensions un-
United States by an international organization or clude it in your income on a monthly basis as it’s
der Sickness and Injury Benefits, later.
a foreign government. However, you must pay credited to your account.
self-employment tax on your earnings from Veterans' benefits. Don’t include in your in-
services performed in the United States, even come any veterans' benefits paid under any law, Volunteers in Service to America (VISTA). If
though you aren’t self-employed. This rule also regulation, or administrative practice adminis- you’re a VISTA volunteer, you must include meal
applies if you’re an employee of a qualifying tered by the Department of Veterans Affairs and lodging allowances paid to you in your in-
wholly owned instrumentality of a foreign gov- (VA). The following amounts paid to veterans or come as wages.
ernment. their families aren’t taxable. National Senior Services Corps programs.
Employees of international organizations or • Education, training, and subsistence allow- Don’t include in your income amounts you re-
foreign governments. Your compensation for ances. ceive for supportive services or reimbursements
official services to an international organization for out-of-pocket expenses from the following
• Disability compensation and pension pay- programs.
is exempt from federal income tax if you aren’t a ments for disabilities paid either to veter-
citizen of the United States or you’re a citizen of ans or their families. • Retired Senior Volunteer Program (RSVP).
the Philippines (whether or not you’re a citizen
of the United States). • Grants for homes designed for wheelchair • Foster Grandparent Program.
Your compensation for official services to a living. • Senior Companion Program.
foreign government is exempt from federal in- • Grants for motor vehicles for veterans who Service Corps of Retired Executives
come tax if all of the following are true. lost their sight or the use of their limbs. (SCORE). If you receive amounts for suppor-
• You aren’t a citizen of the United States or • Veterans' insurance proceeds and divi- tive services or reimbursements for
you’re a citizen of the Philippines (whether dends paid either to veterans or their bene- out-of-pocket expenses from SCORE, don’t in-
or not you’re a citizen of the United States). ficiaries, including the proceeds of a veter- clude these amounts in gross income.
an's endowment policy paid before death.
• Your work is like the work done by employ- Volunteer tax counseling. Don’t include in
ees of the United States in foreign coun- • Interest on insurance dividends you leave your income any reimbursements you receive
tries. on deposit with the VA. for transportation, meals, and other expenses
you have in training for, or actually providing,
• The foreign government gives an equal ex- • Benefits under a dependent-care assis-
emption to employees of the United States tance program. volunteer federal income tax counseling for the
in its country. elderly (TCE).
• The death gratuity paid to a survivor of a You can deduct as a charitable contribution
Waiver of alien status. If you’re an alien member of the Armed Forces who died af- your unreimbursed out-of-pocket expenses in
who works for a foreign government or interna- ter September 10, 2001. taking part in the volunteer income tax assis-
tional organization and you file a waiver under • Payments made under the compensated tance (VITA) program. See Pub. 526.
section 247(b) of the Immigration and National- work therapy program.
ity Act to keep your immigrant status, different

Volunteer firefighters and emergency medi- age is generally the age at which you can first d. Is caused by an instrumentality of war.
cal responders. If you are a volunteer fire- receive a pension or annuity if you’re not disa-
4. You would be entitled to receive disability
fighter or emergency medical responder, don’t bled.
compensation from the Department of Vet-
include in your income the following benefits
You may be entitled to a tax credit if erans Affairs (VA) if you filed an applica-
you receive from a state or local government.
TIP you were permanently and totally disa- tion for it. Your exclusion under this condi-
• Rebates or reductions of property or in- bled when you retired. For information tion is equal to the amount you would be
come taxes you receive because of serv- on this credit and the definition of permanent entitled to receive from the VA.
ices you performed as a volunteer fire- and total disability, see Pub. 524, Credit for the
fighter or emergency medical responder. Elderly or the Disabled. Pension based on years of service. If you
receive a disability pension based on years of
• Payments you receive because of services Beginning on the day after you reach mini- service, in most cases you must include it in
you performed as a volunteer firefighter or mum retirement age, payments you receive are your income. However, if the pension qualifies
emergency medical responder, up to $50 taxable as a pension or annuity. Report the pay- for the exclusion for a service-connected disa-
for each month you provided services. ments on lines 5a and 5b of Form 1040 or bility (discussed earlier), don’t include in income
The excluded income reduces any related tax 1040-SR. The rules for reporting pensions are the part of your pension that you would have re-
or contribution deduction. explained in Disability Pensions in Pub. 575. ceived if the pension had been based on a per-
For information on disability payments from centage of disability. You must include the rest
Sickness and Injury a governmental program provided as a substi-
tute for unemployment compensation, see Un-
of your pension in your income.
Benefits employment Benefits in chapter 8. Retroactive VA determination. If you retire

from the armed services based on years of
Retirement and profit-sharing plans. If you service and are later given a retroactive serv-
This section discusses sickness and injury ben- receive payments from a retirement or
efits, including disability pensions, long-term ice-connected disability rating by the VA, your
profit-sharing plan that doesn’t provide for disa- retirement pay for the retroactive period is ex-
care insurance contracts, workers' compensa- bility retirement, don’t treat the payments as a
tion, and other benefits. cluded from income up to the amount of VA dis-
disability pension. The payments must be re- ability benefits you would have been entitled to
In most cases, you must report as income ported as a pension or annuity. For more infor- receive. You can claim a refund of any tax paid
any amount you receive for personal injury or mation on pensions, see Pub. 575. on the excludable amount (subject to the statute
sickness through an accident or health plan that Accrued leave payment. If you retire on disa- of limitations) by filing an amended return on
is paid for by your employer. If both you and bility, any lump-sum payment you receive for ac- Form 1040-X for each previous year during the
your employer pay for the plan, only the amount crued annual leave is a salary payment. The retroactive period. You must include with each
you receive that is due to your employer's pay- payment is not a disability payment. Include it in Form 1040-X a copy of the official VA determi-
ments is reported as income. However, certain your income in the tax year you receive it. nation letter granting the retroactive benefit. The
payments may not be taxable to you. For infor- letter must show the amount withheld and the
mation on nontaxable payments, see Military effective date of the benefit.
and Government Disability Pensions and Other
Military and Government If you receive a lump-sum disability sever-
Sickness and Injury Benefits, later in this dis- Disability Pensions ance payment and are later awarded VA disabil-
cussion. Certain military and government disability pen- ity benefits, exclude 100% of the severance
sions aren’t taxable. benefit from your income. However, you must
Don’t report as income any amounts
include in your income any lump-sum readjust-
TIP paid to reimburse you for medical ex- Service-connected disability. You may be ment or other nondisability severance payment
penses you incurred after the plan was able to exclude from income amounts you re- you received on release from active duty, even if
established. ceive as a pension, annuity, or similar allowance you’re later given a retroactive disability rating
for personal injury or sickness resulting from ac- by the VA.
Cost paid by you. If you pay the entire cost of tive service in one of the following government
a health or accident insurance plan, don’t in- services. Special period of limitation. In most ca-
clude any amounts you receive from the plan for ses, under the period of limitation, a claim for
personal injury or sickness as income on your
• The armed forces of any country.
credit or refund must be filed within 3 years from
tax return. If your plan reimbursed you for medi- • The National Oceanic and Atmospheric the time a return was filed or 2 years from the
cal expenses you deducted in an earlier year, Administration. time the tax was paid. However, if you receive a
you may have to include some, or all, of the re- • The Public Health Service. retroactive service-connected disability rating
imbursement in your income. See What if You determination, the period of limitation is exten-
Receive Insurance Reimbursement in a Later • The Foreign Service.
ded by a 1-year period beginning on the date of
Year? in Pub. 502, Medical and Dental Expen- the determination. This 1-year extended period
ses. Conditions for exclusion. Don’t include the
applies to claims for credit or refund filed after
disability payments in your income if any of the
Cafeteria plans. In most cases, if you’re cov- June 17, 2008, and doesn’t apply to any tax
following conditions apply.
ered by an accident or health insurance plan year that began more than 5 years before the
through a cafeteria plan, and the amount of the 1. You were entitled to receive a disability date of the determination.
insurance premiums wasn’t included in your in- payment before September 25, 1975.
Terrorist attack or military action. Don’t in-
come, you aren’t considered to have paid the 2. You were a member of a listed government clude in your income disability payments you re-
premiums and you must include any benefits service or its reserve component, or were ceive for injuries incurred as a direct result of a
you receive in your income. If the amount of the under a binding written commitment to be- terrorist attack or military action directed against
premiums was included in your income, you’re come a member, on September 24, 1975. the United States (or its allies), whether outside
considered to have paid the premiums, and any or within the United States or from military ac-
benefits you receive aren’t taxable. 3. You receive the disability payments for a
tion. See Pub. 3920 and Pub. 907 for more in-
combat-related injury. This is a personal
formation.
injury or sickness that:
Disability Pensions a. Results directly from armed conflict;
If you retired on disability, you must include in
Long-Term Care
b. Takes place while you’re engaged in
income any disability pension you receive under extra-hazardous service; Insurance Contracts
a plan that is paid for by your employer. You
must report your taxable disability payments on c. Takes place under conditions simulat- Long-term care insurance contracts in most ca-
line 1h of Form 1040 or 1040-SR until you reach ing war, including training exercises ses are treated as accident and health insur-
minimum retirement age. Minimum retirement such as maneuvers; or ance contracts. Amounts you receive from them

(other than policyholder dividends or premium retired because of an occupational sickness or your absence from work. These benefits
refunds) in most cases are excludable from in- injury. aren’t taxable even if your employer pays
come as amounts received for personal injury for the accident and health plan that pro-
If part of your workers' compensation
or sickness. To claim an exclusion for payments vides these benefits.
! reduces your social security or equiva-
made on a per diem or other periodic basis un-
CAUTION lent railroad retirement benefits re- Reimbursement for medical care. A reim-
der a long-term care insurance contract, you
ceived, that part is considered social security bursement for medical care is generally not tax-
must file Form 8853 with your return.
(or equivalent railroad retirement) benefits and able. However, it may reduce your medical ex-
A long-term care insurance contract is an in- may be taxable. For more information, see Pub. pense deduction. For more information, see
surance contract that only provides coverage 915, Social Security and Equivalent Railroad Pub. 502.
for qualified long-term care services. The con- Retirement Benefits.
tract must:
• Be guaranteed renewable; Return to work. If you return to work after
qualifying for workers' compensation, salary
• Not provide for a cash surrender value or payments you receive for performing light duties
other money that can be paid, assigned,
are taxable as wages.
pledged, or borrowed;
• Provide that refunds, other than refunds on
6.
the death of the insured or complete sur- Other Sickness and Injury
render or cancellation of the contract, and Benefits
dividends under the contract, may only be
used to reduce future premiums or in- In addition to disability pensions and annuities,
Interest Income
crease future benefits; and you may receive other payments for sickness or
injury.
• In most cases, not pay or reimburse expen-
ses incurred for services or items that Railroad sick pay. Payments you receive as
Reminders
would be reimbursed under Medicare, ex- sick pay under the Railroad Unemployment In-
cept where Medicare is a secondary payer surance Act are taxable and you must include Foreign source income. If you are a U.S. citi-
or the contract makes per diem or other them in your income. However, don’t include zen with interest income from sources outside
periodic payments without regard to ex- them in your income if they’re for an on-the-job the United States (foreign income), you must re-
penses. injury. port that income on your tax return unless it is
exempt by U.S. law. This is true whether you re-
Qualified long-term care services. Qualified If you received income because of a disabil-
side inside or outside the United States and
long-term care services are: ity, see Disability Pensions, earlier.
whether or not you receive a Form 1099 from
• Necessary diagnostic, preventive, thera- Federal Employees' Compensation Act the foreign payer.
peutic, curing, treating, mitigating, and re- (FECA). Payments received under this Act for
habilitative services, and maintenance and personal injury or sickness, including payments Automatic 6-month extension. If you receive
personal care services; and to beneficiaries in case of death, aren’t taxable. your Form 1099 reporting your interest income
However, you’re taxed on amounts you receive late and you need more time to file your tax re-
• Required by a chronically ill individual and under this Act as continuation of pay for up to turn, you can request a 6-month extension of
provided pursuant to a plan of care prescri- 45 days while a claim is being decided. Report time to file. See Automatic Extension in chap-
bed by a licensed health care practitioner. this income as wages. Also, pay for sick leave ter 1.
Chronically ill individual. A chronically ill indi- while a claim is being processed is taxable and
vidual is one who has been certified by a li- must be included in your income as wages. Children who have unearned income. See
censed health care practitioner within the previ- Form 8615 and its instructions for the rules and
If part of the payments you receive un-
ous 12 months as one of the following. rates that apply to certain children with un-
! der FECA reduces your social security
earned income.
• An individual who, for at least 90 days, is CAUTION or equivalent railroad retirement bene-
unable to perform at least two activities of fits received, that part is considered social se-
daily living without substantial assistance
due to loss of functional capacity. Activities
curity (or equivalent railroad retirement) benefits
and may be taxable. See Pub. 554 for more in- Introduction
of daily living are eating, toileting, transfer- formation. This chapter discusses the following topics.
ring, bathing, dressing, and continence.
Other compensation. Many other amounts • Different types of interest income.
• An individual who requires substantial su- you receive as compensation for sickness or in-
pervision to be protected from threats to • What interest is taxable and what interest
jury aren’t taxable. These include the following is nontaxable.
health and safety due to severe cognitive amounts.
impairment. • When to report interest income.
• Compensatory damages you receive for
Limit on exclusion. You can generally exclude physical injury or physical sickness, • How to report interest income on your tax
from gross income up to $420 a day for 2023. return.
whether paid in a lump sum or in periodic
See Limit on exclusion, under Long-Term Care payments. In general, any interest you receive or that is
Insurance Contracts, under Sickness and Injury credited to your account and can be withdrawn
Benefits in Pub. 525 for more information. • Benefits you receive under an accident or
is taxable income. Exceptions to this rule are
health insurance policy on which either you
discussed later in this chapter.
paid the premiums or your employer paid
Workers' Compensation the premiums but you had to include them You may be able to deduct expenses you
have in earning this income on Schedule A
in your income.
Amounts you receive as workers' compensation (Form 1040) if you itemize your deductions. See
for an occupational sickness or injury are fully • Disability benefits you receive for loss of in- Money borrowed to invest in certificate of de-
exempt from tax if they’re paid under a workers' come or earning capacity as a result of in- posit, later, and chapter 12.
compensation act or a statute in the nature of a juries under a no-fault car insurance policy.
workers' compensation act. The exemption also • Compensation you receive for permanent
applies to your survivors. The exemption, how- loss or loss of use of a part or function of
ever, doesn’t apply to retirement plan benefits your body, or for your permanent disfigure-
you receive based on your age, length of serv- ment. This compensation must be based
ice, or prior contributions to the plan, even if you only on the injury and not on the period of
54 Chapter 6 Interest Income Publication 17 (2023)

Useful Items and its instructions will tell you where to report your interest or dividend income. For more infor-
You may want to see: the income on your Form 1040 or 1040-SR. mation, see Backup Withholding in chapter 4.
Taxpayer identification number (TIN). You Reporting backup withholding. If backup
Publication must give your name and TIN (either a social withholding is deducted from your interest in-
537 Installment Sales security number (SSN), an employer identifica- come, the amount withheld will be reported on
tion number (EIN), an adoption taxpayer identifi- your Form 1099-INT. The Form 1099-INT will
537
550 Investment Income and Expenses

550
cation number (ATIN), or an individual tax iden- show any backup withholding as “Federal in-
tification number (ITIN)) to any person required come tax withheld.”
1212 Guide to Original Issue Discount
by federal tax law to make a return, statement,
1212
(OID) Instruments Joint accounts. If two or more persons hold

or other document that relates to you. This in-
property (such as a savings account or bond)
Form (and Instructions) cludes payers of interest. If you don't give your
as joint tenants, tenants by the entirety, or ten-
TIN to the payer of interest, the payer will gener-
1040 U.S. Individual Income Tax Return ants in common, each person's share of any in-
ally be required to backup withhold on the inter-
terest from the property is determined by local
1040
est payments at a rate of 24%, and you may

1040-SR U.S. Income Tax Return for law.
also be subject to a penalty. Use Form W-9, Re-
1040-SR
Seniors
quest for Taxpayer Identification Number and Income from property given to a child.
Schedule A (Form 1040) Itemized Schedule A (Form 1040)
Certification, to provide the necessary informa- Property you give as a parent to your child un-
Deductions tion. See Form W-9 and its instructions. der the Model Gifts of Securities to Minors Act,
Schedule B (Form 1040) Interest and the Uniform Gifts to Minors Act, or any similar
Schedule B (Form 1040)
TIN for joint account. Generally, if the law becomes the child's property.
Ordinary Dividends funds in a joint account belong to one person,
Income from the property is taxable to the
1099 General Instructions for Certain list that person's name first on the account and
child, except that any part used to satisfy a legal
give that person's TIN to the payer. (For infor-
1099
Information Returns obligation to support the child is taxable to the

mation on who owns the funds in a joint ac-
3115 Application for Change in parent or guardian having that legal obligation.
3115
count, see Joint accounts, later.) If the joint ac-

Accounting Method count contains combined funds, give the TIN of Savings account with parent as trustee.
8615 Tax for Certain Children Who Have the person whose name is listed first on the ac- Interest income from a savings account opened
count. This is because only one name and TIN for a minor child, but placed in the name and
8615
Unearned Income
can be shown on Form 1099. subject to the order of the parents as trustees,
8814 Parents' Election To Report Child's
8814
These rules apply to both joint ownership by is taxable to the child if, under the law of the
Interest and Dividends a married couple and to joint ownership by state in which the child resides, both of the fol-
8815 Exclusion of Interest From Series EE other individuals. For example, if you open a lowing are true.
joint savings account with your child using funds
• The savings account legally belongs to the
8815
and I U.S. Savings Bonds Issued

After 1989 belonging to the child, list the child's name first child.
on the account and give the child's TIN.
8818 Optional Form To Record Form W-9 and its instructions provide: If this • The parents aren't legally permitted to use
any of the funds to support the child.
8818
Redemption of Series EE and I U.S. Form W-9 is for a joint account (other than an
Savings Bonds Issued After 1989 account maintained by a foreign financial insti- Form 1099-INT. Interest income is generally
tution (FFI)), list first, and then circle, the name reported to you on Form 1099-INT, or a similar
of the person or entity whose number you en- statement, by banks, savings and loans, and
Forms.
tered in Part I of Form W-9. If you are providing other payers of interest. This form shows you
Form W-9 to an FFI to document a joint ac-
General Information count, each holder of the account that is a U.S.
the interest income you received during the
year. Keep this form for your records. You don't
person must provide a Form W-9. See Form have to attach it to your tax return.
A few items of general interest are covered W-9 and its instructions.
Report on your tax return the total interest in-
here.
Custodian account for your child. If your come you receive for the tax year. See the Form
Recordkeeping. You should keep a child is the actual owner of an account that is 1099-INT Instructions for Recipient to see
list showing sources of interest income recorded in your name as custodian for the whether you need to adjust any of the amounts
RECORDS and interest amounts received during reported to you.
child, give the child's TIN to the payer. For ex-
the year. Also, keep the forms you receive ample, you must give your child's SSN to the Interest not reported on Form 1099-INT.
showing your interest income (Forms 1099-INT, payer of interest on an account owned by your Even if you don't receive a Form 1099-INT, you
for example) as an important part of your re- child, even though the interest is paid to you as must still report all of your interest income. For
cords. custodian. example, you may receive distributive shares of
Tax on unearned income of certain chil- interest from partnerships or S corporations.
Penalty for failure to supply TIN. If you
dren. Part of a child's 2023 unearned income This interest is reported to you on Schedule K-1
don't give your TIN to the payer of interest, you
may be taxed at the parent's tax rate. If so, Form (Form 1065), Partner's Share of Income, De-
may have to pay a penalty. See Failure to supply
8615 must be completed and attached to the duction, Credits, etc.; or Schedule K-1 (Form
SSN under Penalties in chapter 1. Backup with-
child's tax return. If not, Form 8615 isn't required 1120-S), Shareholder's Share of Income, De-
holding may also apply.
and the child's income is taxed at his or her own ductions, Credits, etc.
tax rate. Backup withholding. Your interest income is
Nominees. Generally, if someone receives
generally not subject to regular withholding.
Some parents can choose to include the interest as a nominee for you, that person must
However, it may be subject to backup withhold-
child's interest and dividends on the parent's re- give you a Form 1099-INT showing the interest
ing to ensure that income tax is collected on the
turn. If you can, use Form 8814 for this purpose. received on your behalf.
income. Under backup withholding, the payer of
For more information about the tax on un- If you receive a Form 1099-INT and interest
interest must withhold, as income tax, on the
earned income of children and the parents' as a nominee for another person, see the dis-
amount you are paid, by applying the appropri-
election, go to Form 8615. cussion on nominee distributions under How To
ate withholding rate. The current rate is 24%.
Report Interest Income in Publication 550,
Beneficiary of an estate or trust. Interest you Withholding is required only if there is a condi-
chapter 1 or the Schedule B (Form 1040) in-
receive as a beneficiary of an estate or trust is tion for backup withholding, such as failing to
structions.
generally taxable income. You should receive a provide your TIN to the payer or failing to certify
Schedule K-1 (Form 1041), Beneficiary's Share your TIN under penalties of perjury, if required. Incorrect amount. If you receive a Form
of Income, Deductions, Credits, etc., from the fi- Backup withholding may also be required if 1099-INT that shows an incorrect amount or
duciary. Your copy of Schedule K-1 (Form 1041) the IRS has determined that you underreported other incorrect information, you should ask the
Publication 17 (2023) Chapter 6 Interest Income 55

issuer for a corrected form. The new Form • Domestic savings and loan associations, determined by the cost to the financial institu-
1099-INT you receive will have the “CORREC- tion.
• Federal savings and loan associations,
TED” box checked. and
Example. You open a savings account at
Form 1099-OID. Reportable interest income • Mutual savings banks. your local bank and deposit $800. The account
may also be shown on Form 1099-OID, Original
The “dividends” will be shown as interest in- earns $20 interest. You also receive a $15 cal-
Issue Discount. For more information about
come on Form 1099-INT. culator. If no other interest is credited to your
amounts shown on this form, see Original Issue account during the year, the Form 1099-INT you
Discount (OID), later in this chapter. Money market funds. Money market funds receive will show $35 interest for the year. You
The box references discussed below pay dividends and are offered by nonbank fi- must report $35 interest income on your tax re-
are from the January 2022 revisions of nancial institutions, such as mutual funds and turn.
!
CAUTION Form 1099-INT and Form 1099-DIV. stock brokerage houses. Generally, amounts
you receive from money market funds should be Interest on insurance dividends. Interest on
Later revisions may have different box referen-
reported as dividends, not as interest. insurance dividends left on deposit with an in-
ces. surance company that can be withdrawn annu-
Certificates of deposit and other deferred ally is taxable to you in the year it is credited to
Exempt-interest dividends. Exempt-interest interest accounts. If you buy a certificate of your account. However, if you can withdraw it
dividends you receive from a mutual fund or deposit or open a deferred interest account, in- only on the anniversary date of the policy (or
other regulated investment company (RIC) terest may be paid at fixed intervals of 1 year or other specified date), the interest is taxable in
aren't included in your taxable income. (How- less during the term of the account. You must the year that date occurs.
ever, see Information reporting requirement generally include this interest in your income
next.) Exempt-interest dividends should be when you actually receive it or are entitled to re- Prepaid insurance premiums. Any increase
shown on Form 1099-DIV, box 12. You don't receive it without paying a substantial penalty. in the value of prepaid insurance premiums, ad-
duce your basis for distributions that are ex- The same is true for accounts that mature in 1 vance premiums, or premium deposit funds is
empt-interest dividends. year or less and pay interest in a single payment interest if it is applied to the payment of premi-
at maturity. If interest is deferred for more than 1 ums due on insurance policies or made availa-
Information reporting requirement. Al-
year, see Original Issue Discount (OID), later. ble for you to withdraw.
though exempt-interest dividends aren't taxable,
you must show them on your tax return if you U.S. obligations. Interest on U.S. obligations
Interest subject to penalty for early with-
have to file. This is an information reporting reissued by any agency or instrumentality of the
drawal. If you withdraw funds from a deferred
quirement and doesn't change the exempt-inter- United States, such as U.S. Treasury bills,
interest account before maturity, you may have
est dividends into taxable income. notes, and bonds, is taxable for federal income
to pay a penalty. You must report the total
tax purposes.
Note. Exempt-interest dividends paid by a amount of interest paid or credited to your ac-
count during the year, without subtracting the Interest on tax refunds. Interest you receive
mutual fund or other RIC on specified private
penalty. See Penalty on early withdrawal of sav- on tax refunds is taxable income.
activity bonds may be subject to the alternative
minimum tax (AMT). The exempt-interest divi- ings in Publication 550, chapter 1 for more infor-
Interest on condemnation award. If the con-
dends subject to the AMT should be shown in mation on how to report the interest and deduct
demning authority pays you interest to compen-
box 13 of Form 1099-DIV. See Alternative Mini- the penalty.
sate you for a delay in payment of an award, the
mum Tax (AMT) in chapter 13 for more informa- Money borrowed to invest in certificate of interest is taxable.
tion. Publication 550, chapter 1 contains a dis- deposit. The interest you pay on money bor-
cussion on private activity bonds under State or Installment sale payments. If a contract for
rowed from a bank or savings institution to meet the sale or exchange of property provides for
Local Government Obligations. the minimum deposit required for a certificate of deferred payments, it also usually provides for
Interest on VA dividends. Interest on insur- deposit from the institution and the interest you interest payable with the deferred payments.
ance dividends left on deposit with the Depart- earn on the certificate are two separate items. Generally, that interest is taxable when you re-
ment of Veterans Affairs (VA) isn't taxable. This You must report the total interest income you ceive it. If little or no interest is provided for in a
includes interest paid on dividends on conver- earn on the certificate in your income. If you deferred payment contract, part of each pay-
ted United States Government Life Insurance itemize deductions, you can deduct the interest ment may be treated as interest. See Unstated
and on National Service Life Insurance policies. you pay as investment interest, up to the Interest and Original Issue Discount (OID) in
amount of your net investment income. See In- Pub. 537, Installment Sales.
Individual retirement arrangements (IRAs). terest Expenses in Publication 550, chapter 3.
Interest on a Roth IRA generally isn't taxable. In- Interest on annuity contract. Accumulated
terest on a traditional IRA is tax deferred. You Example. You purchase a $10,000 certifi- interest on an annuity contract you sell before
generally don't include interest earned in an IRA cate of deposit by borrowing $5,000 from Bank its maturity date is taxable.
in your income until you make withdrawals from and adding an additional $5,000 of your funds.
the IRA. See chapter 9. Usurious interest. Usurious interest is interest
The certificate earned $575 at maturity in 2023, charged at an illegal rate. This is taxable as in-
but you received only $265, which represented terest unless state law automatically changes it
Taxable the $575 you earned minus $310 interest
charged on your $5,000 loan. The bank gives
to a payment on the principal.
Interest—General you a Form 1099-INT for 2023 showing the Interest income on frozen deposits. Exclude
$575 interest you earned. The bank also gives from your gross income interest on frozen de-
Taxable interest includes interest you receive you a statement showing that you paid $310 of posits. A deposit is frozen if, at the end of the
from bank accounts, loans you make to others, interest for 2023. You must include the $575 in year, you can't withdraw any part of the deposit
and other sources. The following are some your income. If you itemize your deductions on because:
sources of taxable interest. Schedule A (Form 1040), you can deduct $310, • The financial institution is bankrupt or in-
Dividends that are actually interest. Certain subject to the net investment income limit. solvent, or
distributions commonly called dividends are ac- Gift for opening account. If you receive non- • The state where the institution is located
tually interest. You must report as interest cash gifts or services for making deposits or for has placed limits on withdrawals because
so-called dividends on deposits or on share ac- opening an account in a savings institution, you other financial institutions in the state are
counts in: may have to report the value as interest. bankrupt or insolvent.
• Cooperative banks, For deposits of less than $5,000, gifts or
services valued at more than $10 must be re-
• Credit unions, ported as interest. For deposits of $5,000 or
• Domestic building and loan associations, more, gifts or services valued at more than $20
must be reported as interest. The value is

The amount of interest you must exclude is If you prefer, write to: Reporting options for cash method tax-
the interest that was credited on the frozen de- payers. If you use the cash method of report-
posits minus the sum of: ing income, you can report the interest on Ser-
Treasury Retail Securities Services ies EE and Series I bonds in either of the
• The net amount you withdrew from these P.O. Box 9150 following ways.
deposits during the year, and
Minneapolis, MN 55480-9150
• The amount you could have withdrawn as 1. Method 1. Postpone reporting the interest
of the end of the year (not reduced by any until the earlier of the year you cash or dis-
penalty for premature withdrawals of a time pose of the bonds or the year they mature.
Accrual method taxpayers. If you use an ac- (However, see Savings bonds traded,
deposit). crual method of accounting, you must report in- later.)
If you receive a Form 1099-INT for interest interest on U.S. savings bonds each year as it ac- Note. Series EE bonds issued in 1993
come on deposits that were frozen at the end of crues. You can't postpone reporting interest matured in 2023. If you used method 1,
2023, see Frozen deposits under How To Re- until you receive it or until the bonds mature. Ac- you must generally report the interest on
port Interest Income in Publication 550, chap- crual methods of accounting are explained in these bonds on your 2023 return.
ter 1 for information about reporting this interest chapter 1 under Accounting Methods.
income exclusion on your tax return. 2. Method 2. Choose to report the increase
Cash method taxpayers. If you use the cash in redemption value as interest each year.
The interest you exclude is treated as credi- method of accounting, as most individual tax-
ted to your account in the following year. You payers do, you generally report the interest on You must use the same method for all Series EE
must include it in income in the year you can U.S. savings bonds when you receive it. The and Series I bonds you own. If you don't choose
withdraw it. cash method of accounting is explained in method 2 by reporting the increase in redemp-
chapter 1 under Accounting Methods. But see tion value as interest each year, you must use
Example. $100 of interest was credited on Reporting options for cash method taxpayers, method 1.
your frozen deposit during the year. You with- later.
drew $80 but couldn't withdraw any more as of If you plan to cash your bonds in the
the end of the year. You must include $80 in Series H and HH bonds. These bonds were TIP same year you will pay for higher edu-
your income and exclude $20 from your income issued at face value in exchange for other sav- cation expenses, you may want to use
for the year. You must include the $20 in your in- ings bonds. Series HH bonds were issued be- method 1 because you may be able to exclude
come for the year you can withdraw it. tween 1980 and 2004. They mature 20 years af- the interest from your income. To learn how, see
ter issue. Series HH bonds that have not Education Savings Bond Program, later.
Bonds traded flat. If you buy a bond at a dis- matured pay interest twice a year (usually by di-
count when interest has been defaulted or when rect deposit to your bank account). If you are a
the interest has accrued but hasn't been paid, Change from method 1. If you want to
cash method taxpayer, you must report this in- change your method of reporting the interest
the transaction is described as trading a bond terest as income in the year you receive it.
flat. The defaulted or unpaid interest isn't in- from method 1 to method 2, you can do so with-
Series H bonds were issued before 1980. All out permission from the IRS. In the year of
come and isn't taxable as interest if paid later.
Series H bonds have matured and are no longer change, you must report all interest accrued to
When you receive a payment of that interest, it
earning interest. date and not previously reported for all your
is a return of capital that reduces the remaining
In addition to the twice-a-year interest pay- bonds.
cost basis of your bond. Interest that accrues
ments, most H/HH bonds have a deferred inter- Once you choose to report the interest each
after the date of purchase, however, is taxable
est component. The reporting of this as income year, you must continue to do so for all Series
interest income for the year it is received or ac-
is addressed later in this chapter. EE and Series I bonds you own and for any you
crued. See Bonds Sold Between Interest Dates,
later, for more information. Series EE and Series I bonds. Interest on get later, unless you request permission to
these bonds is payable when you redeem the change, as explained next.
Below-market loans. Generally, a “below-mar-
bonds. The difference between the purchase
ket loan” means any loan if (A) in the case of a Change from method 2. To change from
price and the redemption value is taxable inter-
gift or demand loan, interest is payable on the method 2 to method 1, you must request per-
est.
loan at a rate less than the applicable Federal mission from the IRS. Permission for the
rate, or (B) in the case of a term loan, the Series E and EE bonds. Series E bonds change is automatically granted if you send the
amount loaned exceeds the present value (us- were issued before July 1980. All Series E IRS a statement that meets all the following re-
ing a discount rate equal to the applicable Fed- bonds have matured and are no longer earning quirements.
eral rate) of all payments due under the loan. interest. Series EE bonds were first offered in
(See Code section 7872 for details.) Section January 1980 and have a maturity period of 30 1. You have typed or printed the following
7872 applies to certain below-market loans, in- years; they were offered in paper (definitive) number at the top: “131.”
cluding gift loans, compensation-related loans, form until 2012. Paper Series EE and Series E 2. It includes your name and social security
and corporation-shareholder loans. (See Code bonds were issued at a discount and increase number under “131.”
section 7872(c).) If you are the lender of a be- in value as they earn interest. Electronic
low-market loan, you may have additional inter- (book-entry) Series EE bonds were first offered 3. It includes the year of change (both the be-
est income. See Below-Market Loans in Publi- in 2003; they are issued at face value and in- ginning and ending dates).
cation 550, chapter 1 for more information. crease in value as they earn interest. For all 4. It identifies the savings bonds for which
Series E and Series EE bonds, the purchase you are requesting this change.
U.S. Savings Bonds price plus all accrued interest is payable to you
at redemption. 5. It includes your agreement to:
This section provides tax information on U.S. Series I bonds. Series I bonds were first of- a. Report all interest on any bonds ac-
savings bonds. It explains how to report the in- fered in 1998. These are inflation-indexed quired during or after the year of
terest income on these bonds and how to treat bonds issued at face value with a maturity pe- change when the interest is realized
transfers of these bonds. riod of 30 years. Series I bonds increase in upon disposition, redemption, or final
U.S. savings bonds currently offered to indi- value as they earn interest. The face value plus maturity, whichever is earliest; and
viduals include Series EE bonds and Series I all accrued interest is payable to you at redemp- b. Report all interest on the bonds ac-
bonds. tion. quired before the year of change
For information about U.S. savings when the interest is realized upon dis-
bonds, go to TreasuryDirect.gov/ position, redemption, or final maturity,
savings-bonds/. whichever is earliest, with the excep-
tion of the interest reported in prior tax
years.

Table 6-1. Who Pays the Tax on U.S. Savings Bond Interest be taxable to you, you can continue to defer re-
porting the interest earned each year. You must
IF... THEN the interest must be reported by... include the total interest in your income in the
you buy a bond in your name and the name of another you. year you cash or dispose of the bonds or the
person as co-owners, using only your own funds
year the bonds finally mature, whichever is ear-
you buy a bond in the name of another person, who is the the person for whom you bought the bond. lier.
sole owner of the bond
The same rules apply to previously unrepor-
you and another person buy a bond as co-owners, each both you and the other co-owner, in proportion to the ted interest on Series EE or Series E bonds if
contributing part of the purchase price amount each paid for the bond.
the transfer to a trust consisted of Series HH
you and your spouse, who live in a community property you and your spouse. If you file separate returns, both you bonds you acquired in a trade for the Series EE
state, buy a bond that is community property and your spouse generally report one-half of the interest.
or Series E bonds. See Savings bonds traded,
You must attach this statement to your tax and have not previously reported. But, if the later.
return for the year of change, which you must bonds were reissued in your name alone, you Decedents. The manner of reporting interest
file by the due date (including extensions). don't have to report the interest accrued at that income on Series EE or Series I bonds, after the
You can have an automatic extension of 6 time. death of the owner (decedent), depends on the
months from the due date of your return for the This same rule applies when bonds (other accounting and income-reporting methods pre-
year of change (excluding extensions) to file the than bonds held as community property) are viously used by the decedent. This is explained
statement with an amended return. On the transferred between spouses or incident to di- in Publication 550, chapter 1.
statement, type or print “Filed pursuant to sec- vorce.
tion 301.9100-2.” To get this extension, you Savings bonds traded. Prior to September
must have filed your original return for the year Purchased jointly. If you and a co-owner 2004, you could trade (exchange) Series E or
of the change by the due date (including exten- each contributed funds to buy Series EE or Ser- EE bonds for Series H or HH bonds. At the time
sions). ies I bonds jointly and later have the bonds reis- of the trade, you had the choice to postpone
Instead of filing this statement, you can re- sued in the co-owner's name alone, you must (defer) reporting the interest earned on your
quest permission to change from method 2 to include in your gross income for the year of reis- Series E or EE bonds until the Series H or HH
method 1 by filing Form 3115, Application for sue your share of all the interest earned on the bonds received in the trade were redeemed or
Change in Accounting Method. In that case, fol- bonds that you have not previously reported. matured. Any cash you received in the transac-
low the form instructions for an automatic The former co-owner doesn't have to include in tion was income up to the amount of the interest
change. No user fee is required. gross income at the time of reissue his or her that had accrued on the Series E or EE bonds.
share of the interest earned that was not repor- The amount of income that you chose to post-
Co-owners. If a U.S. savings bond is issued in ted before the transfer. This interest, however, pone reporting was recorded on the face of the
the names of co-owners, such as you and your as well as all interest earned after the reissue, is Series H or HH bonds as “Deferred Interest”;
child or you and your spouse, interest on the income to the former co-owner. this amount is also equal to the difference be-
bond is generally taxable to the co-owner who This income-reporting rule also applies tween the redemption value of the Series H or
bought the bond. when a new co-owner purchases your share of HH bonds and your cost. Your cost is the sum of
the bond and the bonds are reissued in the the amount you paid for the exchanged Series E
One co-owner's funds used. If you used name of your former co-owner and a new or EE bonds plus any amount you had to pay at
your funds to buy the bond, you must pay the co-owner. But the new co-owner will report only the time of the transaction.
tax on the interest. This is true even if you let the his or her share of the interest earned after the
other co-owner redeem the bond and keep all transfer. Example. You traded Series EE bonds (on
the proceeds. Under these circumstances, the If bonds that you and a co-owner bought which you postponed reporting the interest) for
co-owner who redeemed the bond will receive a jointly are reissued to each of you separately in $2,500 in Series HH bonds and $223 in cash.
Form 1099-INT at the time of redemption and the same proportion as your contribution to the You reported the $223 as taxable income on
must provide you with another Form 1099-INT purchase price, neither you nor your co-owner your tax return. At the time of the trade, the Ser-
showing the amount of interest from the bond has to report at that time the interest earned be- ies EE bonds had accrued interest of $523 and
taxable to you. The co-owner who redeemed fore the bonds were reissued. a redemption value of $2,723. You hold the Ser-
the bond is a “nominee.” See Nominee distribu-
ies HH bonds until maturity, when you receive
tions under How To Report Interest Income in Example 1. You and your spouse each $2,500. You must report $300 as interest in-
Publication 550, chapter 1 for more information spent an equal amount to buy a $1,000 Series come in the year of maturity. This is the differ-
about how a person who is a nominee reports EE savings bond. The bond was issued to you ence between their redemption value, $2,500,
interest income belonging to another person. and your spouse as co-owners. You both post- and your cost, $2,200 (the amount you paid for
pone reporting interest on the bond. You later the Series EE bonds). It is also the difference
Both co-owners' funds used. If you and
have the bond reissued as two $500 bonds, one between the accrued interest of $523 on the
the other co-owner each contribute part of the
in your name and one in your spouse's name. At Series EE bonds and the $223 cash received
bond's purchase price, the interest is generally
that time, neither you nor your spouse has to re- on the trade.
taxable to each of you, in proportion to the
port the interest earned to the date of reissue.
amount each of you paid.
Note. The $300 amount that is reportable
Community property. If you and your Example 2. You bought a $1,000 Series EE upon redemption or maturity may be found re-
spouse live in a community property state and savings bond entirely with your own funds. The corded on the face of the Series HH bond as
hold bonds as community property, one-half of bond was issued to you and your spouse as “Deferred Interest.” If more than one Series HH
the interest is considered received by each of co-owners. You both postpone reporting interest bond is received in the exchange, the total
you. If you file separate returns, each of you on the bond. You later have the bond reissued amount of interest postponed/deferred in the
must generally report one-half of the bond inter- as two $500 bonds, one in your name and one transaction is divided proportionately among
est. For more information about community in your spouse's name. You must report half the the Series HH bonds.
property, see Pub. 555. interest earned to the date of reissue.
Choice to report interest in year of trade.
Transfer to a trust. If you own Series EE or You can choose to treat all of the previously un-
Table 6-1. These rules are also shown in Ta-
Series I bonds and transfer them to a trust, giv- reported accrued interest on the Series EE
ble 6-1.
ing up all rights of ownership, you must include bonds traded for Series HH bonds as income in
Ownership transferred. If you bought Series in your income for that year the interest earned the year of the trade. If you made this choice, it
EE or Series I bonds entirely with your own to the date of transfer if you have not already reis treated as a change from method 1. See
funds and had them reissued in your co-owner's ported it. However, if you are considered the Change from method 1, earlier. If you choose to
name or beneficiary's name alone, you must in- owner of the trust and if the increase in value report the interest, then the “Deferred Interest”
clude in your gross income for the year of reis- both before and after the transfer continues to
sue all interest that you earned on these bonds

notation on the face of the Series HH bonds re- Interest on U.S. savings bonds is ex- 2. Expenses used to figure the tax-free por-
ceived in the trade will be $0 or blank. TIP empt from state and local taxes. The tion of distributions from a Coverdell ESA.
Form 1099-INT you receive will indi-
Form 1099-INT for U.S. savings bonds inter- 3. Expenses used to figure the tax-free por-
cate the amount that is for U.S. savings bond in-
est. When you cash a bond, the bank or other tion of distributions from a qualified tuition
terest in box 3. Do not include this income on
payer that redeems it must give you a Form program.
your state or local income tax return.
1099-INT if the interest part of the payment you 4. Any tax-free payments (other than gifts or
receive is $10 or more. Box 3 of your Form inheritances) received for educational ex-
1099-INT should show the interest as the differ-
ence between the amount you received and the
Education Savings Bond penses, such as:
amount paid for the bond. However, your Form Program a. Veterans' educational assistance ben-
1099-INT may show more interest than you efits,
have to include on your income tax return. For You may be able to exclude from income all or
b. Qualified tuition reductions, or
example, this may happen if any of the following part of the interest you receive on the redemp-
are true. tion of qualified U.S. savings bonds during the c. Employer-provided educational assis-
year if you pay qualified higher educational ex- tance.
• You chose to report the increase in the re- penses during the same year. This exclusion is
demption value of the bond each year. The 5. Any expense used in figuring the Ameri-
known as the Education Savings Bond Pro-
interest shown on your Form 1099-INT can opportunity and lifetime learning cred-
gram.
won't be reduced by amounts previously its.
You don't qualify for this exclusion if your fil-
included in income.
ing status is married filing separately. Amount excludable. If the total proceeds
• You received the bond from a decedent. (interest and principal) from the qualified U.S.
The interest shown on your Form 1099-INT Form 8815. Use Form 8815 to figure your savings bonds you redeem during the year
won't be reduced by any interest reported exclusion. Attach the form to your Form 1040 or aren't more than your adjusted qualified higher
by the decedent before death, or on the 1040-SR. education expenses for the year, you may be
decedent's final return, or by the estate on Qualified U.S. savings bonds. A qualified able to exclude all of the interest. If the pro-
the estate's income tax return. U.S. savings bond is a Series EE bond issued ceeds are more than the expenses, you may be
• Ownership of the bond was transferred. after 1989 or a Series I bond. The bond must be able to exclude only part of the interest.
The interest shown on your Form 1099-INT issued either in your name (sole owner) or in To determine the excludable amount, multi-
won't be reduced by interest that accrued your and your spouse's names (co-owners). ply the interest part of the proceeds by a frac-
before the transfer. You must be at least 24 years old before the tion. The numerator of the fraction is the quali-
Note. This is true for paper bonds, but bond's issue date. For example, a bond bought fied higher education expenses you paid during
the Treasury reporting process for elec- by a parent and issued in the name of his or her the year. The denominator of the fraction is the
tronic bonds is more refined—if Treasury is child under age 24 doesn't qualify for the exclu- total proceeds you received during the year.
aware that the transfer of an electronic sav- sion by the parent or child.
ings bond is a reportable event, then the Example. In January 2023, Mark and Joan,
The issue date of a bond may be ear- a married couple, cashed qualified Series EE
transferor will receive a Form 1099-INT for
! lier than the date the bond is pur- U.S. savings bonds with a total denomination of
the year of the transfer for the interest ac-
CAUTION chased because the issue date as- $10,000 that they bought in January 2007 for
crued up to the time of the transfer; when
signed to a bond is the first day of the month in $5,000. They received proceeds of $8,848, rep-
the transferee later disposes of the bond
which it is purchased. resenting principal of $5,000 and interest of
(redemption, maturity, or further transfer),
the transferee will receive a Form 1099-INT $3,848. In 2023, they paid $4,000 of their
Beneficiary. You can designate any individual daughter's college tuition. They aren't claiming
reduced by the amount reported to the
(including a child) as a beneficiary of the bond. an education credit for that amount, and their
transferor at the time of the original trans-
fer. daughter doesn't have any tax-free educational
Verification by IRS. If you claim the exclu-
assistance. They can exclude $1,739.60
• You were named as a co-owner, and the sion, the IRS will check it by using bond re-
($3,848 × ($4,000 ÷ $8,848)) of interest in 2023.
other co-owner contributed funds to buy demption information from the Department of
They must include the remaining $2,108.40
the bond. The interest shown on your Form the Treasury.
($3,848 − $1,739.60) interest in gross income.
1099-INT won't be reduced by the amount Qualified expenses. Qualified higher edu-
you received as nominee for the other Modified adjusted gross income limit.
cation expenses are tuition and fees required The interest exclusion is limited if your modified
co-owner. (See Co-owners, earlier in this for you, your spouse, or your dependent (for
chapter, for more information about the re- adjusted gross income (modified AGI) is:
whom you claim an exemption) to attend an eli-
porting requirements.) gible educational institution. • $137,800 to $167,800 for married taxpay-
• You received the bond in a taxable distribu- Qualified expenses include any contribution ers filing jointly, and
tion from a retirement or profit-sharing you make to a qualified tuition program or to a • $91,850 to $106,850 for all other taxpay-
plan. The interest shown on your Form Coverdell education savings account (ESA). ers.
1099-INT won't be reduced by the interest Qualified expenses don't include expenses
You don't qualify for the interest exclusion if your
portion of the amount taxable as a distribu- for room and board or for courses involving
modified AGI is equal to or more than the upper
tion from the plan and not taxable as inter- sports, games, or hobbies that aren't part of a
limit for your filing status.
est. (This amount is generally shown on degree- or certificate-granting program.
Modified AGI, for purposes of this exclusion,
Form 1099-R, Distributions From Pen-
Eligible educational institutions. These is adjusted gross income (Form 1040 or
sions, Annuities, Retirement or Profit-Shar-
institutions include most public, private, and 1040-SR, line 11) figured before the interest ex-
ing Plans, IRAs, Insurance Contracts, etc.,
nonprofit universities, colleges, and vocational clusion, and modified by adding back any:
for the year of distribution.)
schools that are accredited and eligible to par- 1. Foreign earned income exclusion,
For more information on including the cor- ticipate in student aid programs run by the U.S.
rect amount of interest on your return, see How Department of Education. 2. Foreign housing exclusion and deduction,
To Report Interest Income, later. Pub. 550 in-
3. Exclusion of income for bona fide resi-
cludes examples showing how to report these Reduction for certain benefits. You must
dents of American Samoa,
amounts. reduce your qualified higher education expen-
ses by all of the following tax-free benefits. 4. Exclusion for income from Puerto Rico,
1. Tax-free part of scholarships and fellow- 5. Exclusion for adoption benefits received
ships (see Scholarships and fellowships in under an employer's adoption assistance
chapter 8). program, and

6. Deduction for student loan interest. Or, on the Internet, go to For information on federally guaranteed
TreasuryDirect.gov/marketable- bonds, mortgage revenue bonds, arbitrage
Use the Line 9 Worksheet in the Form 8815 securities/. bonds, private activity bonds, qualified bonds,
instructions to figure your modified AGI. and tax credit bonds, including whether interest
If you have investment interest expense in- For information on Series EE, Series I, and
on some of these bonds is taxable, see State or
curred to earn royalties and other investment in- Series HH savings bonds, see U.S. Savings
Local Government Obligations in Publication
come, see Education Savings Bond Program Bonds, earlier.
550, chapter 1.
and Royalties included in modified AGI in Publi-
Treasury inflation-protected securities Information reporting requirement. If you file
cation 550, chapter 1.
(TIPS). These securities pay interest twice a a tax return, you are required to show any
Recordkeeping. If you claim the inter- year at a fixed rate, based on a principal amount tax-exempt interest you received on your return.
est exclusion, you must keep a written adjusted to take into account inflation and defla- Tax-exempt interest paid to you will be reported
RECORDS record of the qualified U.S. savings tion. For the tax treatment of these securities, to you on Form 1099-INT, box 8. This is an infor-
bonds you redeem. Your record must include see Inflation-Indexed Debt Instruments under mation reporting requirement only. It doesn't
the serial number, issue date, face value, and Original Issue Discount (OID) in IRS.gov/ change tax-exempt interest to taxable interest.
total redemption proceeds (principal and inter- Pub550.
est) of each bond. You can use Form 8818 to
record this information. You should also keep Original Issue Discount
Bonds Sold Between
bills, receipts, canceled checks, or other docu-
(OID)
mentation that shows you paid qualified higher Interest Dates
education expenses during the year. OID is a form of interest. You generally include
If you sell a bond between interest payment OID in your income as it accrues over the term
dates, part of the sales price represents interest of the debt instrument, whether or not you re-
U.S. Treasury Bills, accrued to the date of sale. You must report that ceive any payments from the issuer.
Notes, and Bonds part of the sales price as interest income for the
year of sale.
A debt instrument generally has OID when
the instrument is issued for a price that is less
Treasury bills, notes, and bonds are direct debts If you buy a bond between interest payment than its stated redemption price at maturity. OID
(obligations) of the U.S. Government. dates, part of the purchase price represents in- is the difference between the stated redemption
terest accrued before the date of purchase. price at maturity and the issue price.
Taxation of interest. Interest income from When that interest is paid to you, treat it as a
Treasury bills, notes, and bonds is subject to All debt instruments that pay no interest be-
nontaxable return of your capital investment,
federal income tax but is exempt from all state fore maturity are presumed to be issued at a
rather than as interest income. See Accrued in-
and local income taxes. You should receive a discount. Zero coupon bonds are one example
terest on bonds under How To Report Interest
Form 1099-INT showing the interest paid to you of these instruments.
Income in Publication 550, chapter 1 for infor-
for the year in box 3. The OID accrual rules generally don't apply
mation on reporting the payment.
to short-term obligations (those with a fixed ma-
Treasury bills. These bills generally have a turity date of 1 year or less from date of issue).
4-week, 8-week, 13-week, 26-week, or 52-week Insurance See Discount on Short-Term Obligations in
maturity period. They are generally issued at a Publication 550, chapter 1.
discount in the amount of $100 and multiples of Life insurance proceeds paid to you as benefi-
$100. The difference between the discounted De minimis OID. You can treat the discount as
ciary of the insured person are usually not taxa-
price you pay for the bills and the face value you zero if it is less than one-fourth of 1% (0.0025)
ble. But if you receive the proceeds in install-
receive at maturity is interest income. Generally, of the stated redemption price at maturity multi-
ments, you must usually report a part of each
you report this interest income when the bill is plied by the number of full years from the date
installment payment as interest income.
paid at maturity. If you paid a premium for a bill of original issue to maturity. This small discount
For more information about insurance pro-
(more than the face value), you generally report is known as de minimis OID.
ceeds received in installments, see Pub. 525,
the premium as a section 171 deduction when Taxable and Nontaxable Income.
the bill is paid at maturity. Example 1. You bought a 10-year bond
If you reinvest your Treasury bill at its matur- Annuity. If you buy an annuity with life insur- with a stated redemption price at maturity of
ity in a new Treasury bill, note, or bond, you will ance proceeds, the annuity payments you re- $1,000, issued at $980 with OID of $20.
receive payment for the difference between the ceive are taxed as pension and annuity income One-fourth of 1% of $1,000 (stated redemption
proceeds of the maturing bill (par amount less from a nonqualified plan, not as interest income. price) times 10 (the number of full years from
any tax withheld) and the purchase price of the See chapter 5 for information on pension and the date of original issue to maturity) equals
new Treasury security. However, you must re- annuity income from nonqualified plans. $25. Because the $20 discount is less than $25,
port the full amount of the interest income on the OID is treated as zero. (If you hold the bond
at maturity, you will recognize $20 ($1,000 −
each of your Treasury bills at the time it reaches
maturity.
State or Local $980) of capital gain.)
Government Obligations
Treasury notes and bonds. Treasury notes Example 2. The facts are the same as in
generally have maturity periods of more than 1 Interest on a bond used to finance government Example 1, except that the bond was issued at
year, ranging up to 10 years. Maturity periods operations generally isn't taxable if the bond is $950. The OID is $50. Because the $50 dis-
for Treasury bonds are generally longer than 10 issued by a state, the District of Columbia, a ter- count is more than the $25 figured in Exam-
years. Both are generally issued in denomina- ritory of the United States, or any of their politi- ple 1, you must include the OID in income as it
tions of $100 to $1,000,000 and generally pay cal subdivisions. accrues over the term of the bond.
interest every 6 months. Generally, you report Bonds issued after 1982 by an Indian tribal
this interest for the year paid. For more informa- Debt instrument bought after original is-
government (including tribal economic develop-
tion, see U.S. Treasury Bills, Notes, and Bonds sue. If you buy a debt instrument with de mini-
ment bonds issued after February 17, 2009) are
in Publication 550, chapter 1. mis OID at a premium, the de minimis OID isn't
treated as issued by a state. Interest on these
includible in income. If you buy a debt instru-
For other information on Treasury notes bonds is generally tax exempt if the bonds are
ment with de minimis OID at a discount, the dis-
or bonds, write to: part of an issue of which substantially all pro-
count is reported under the market discount
ceeds are to be used in the exercise of any es-
rules. See Market Discount Bonds in Publica-
Treasury Retail Securities Services sential government function. However, the es-
tion 550, chapter 1.
P.O. Box 9150 sential government function requirement does
Minneapolis, MN 55480-9150 not apply to tribal economic development bonds Exceptions to reporting OID as current in-
issued after February 17, 2009. See section come. The OID rules discussed in this chapter
7871(f). don't apply to the following debt instruments.

1. Tax-exempt obligations. (However, see Pub. 1212 and the Form 1099-OID Instructions use the cash method, you must include in in-
Stripped tax-exempt obligations under for Recipient. come on your 2023 return the $163.20 interest
Stripped Bonds and Coupons in Publica- If you acquired your debt instrument after you received in that year.
tion 550, chapter 1.) 2013, unless you have informed your payer that
you do not want to amortize bond premium, Constructive receipt. You constructively re-
2. U.S. savings bonds.
your payer must generally report either (1) a net ceive income when it is credited to your account
3. Short-term debt instruments (those with a amount of OID that reflects the offset of OID by or made available to you. You don't need to
fixed maturity date of not more than 1 year the amount of bond premium or acquisition pre- have physical possession of it. For example,
from the date of issue). mium amortization for the year, or (2) a gross you are considered to receive interest, divi-
amount for both the OID and the bond premium dends, or other earnings on any deposit or ac-
4. Loans between individuals if all the follow-
or acquisition premium amortization for the count in a bank, savings and loan, or similar fi-
ing are true.
year. nancial institution, or interest on life insurance
a. The loan is not made in the course of policy dividends left to accumulate, when they
a trade or business of the lender. Refiguring periodic interest shown on Form are credited to your account and subject to your
1099-OID. If you disposed of a debt instrument withdrawal.
b. The amount of the loan, plus the or acquired it from another holder during the You constructively receive income on the de-
amount of any outstanding prior loans year, see Bonds Sold Between Interest Dates, posit or account even if you must:
between the same individuals, is earlier, for information about the treatment of
$10,000 or less. periodic interest that may be shown in box 2 of • Make withdrawals in multiples of even
Form 1099-OID for that instrument. amounts;
c. Avoiding any federal tax isn't one of
the principal purposes of the loan. Certificates of deposit (CDs). A CD is a debt • Give a notice to withdraw before making
instrument. If you buy a CD with a maturity of the withdrawal;
5. A debt instrument purchased at a pre-
mium. more than 1 year, you must include in income • Withdraw all or part of the account to with-
each year a part of the total interest due and re- draw the earnings; or
Form 1099-OID. The issuer of the debt instru- port it in the same manner as other OID.
ment (or your broker if you held the instrument
• Pay a penalty on early withdrawals, unless
This also applies to similar deposit arrange- the interest you are to receive on an early
through a broker) should give you Form ments with banks, building and loan associa- withdrawal or redemption is substantially
1099-OID, or a similar statement, if the total OID tions, etc., including: less than the interest payable at maturity.
for the calendar year is $10 or more. Form
1099-OID will show, in box 1, the amount of OID
• Time deposits,
Accrual method. If you use an accrual
for the part of the year that you held the bond. It • Bonus plans, method, you report your interest income when
will also show, in box 2, the stated interest you • Savings certificates, you earn it, whether or not you have received it.
must include in your income. Box 8 shows OID Interest is earned over the term of the debt in-
on a U.S. Treasury obligation for the part of the • Deferred income certificates, strument.
year you owned it and isn't included in box 1. A • Bonus savings certificates, and
copy of Form 1099-OID will be sent to the IRS. Example. If, in the previous example, you
Don't file your copy with your return. Keep it for • Growth savings certificates. use an accrual method, you must include the in-
your records. Bearer CDs. CDs issued after 1982 must terest in your income as you earn it. You would
In most cases, you must report the entire generally be in registered form. Bearer CDs are report the interest as follows: 2021, $26.67;
amount in boxes 1, 2, and 8 of Form 1099-OID CDs not in registered form. They aren't issued 2022, $81.06; and 2023, $55.47.
as interest income. But see Refiguring OID in the depositor's name and are transferable Coupon bonds. Interest on bearer bonds with
shown on Form 1099-OID, later in this discus- from one individual to another. detachable coupons is generally taxable in the
sion, for more information. Banks must provide the IRS and the person year the coupon becomes due and payable. It
redeeming a bearer CD with a Form 1099-INT. doesn't matter when you mail the coupon for
Form 1099-OID not received. If you had OID
for the year but didn't receive a Form 1099-OID, More information. See Publication 550, chap- payment.
you may have to figure the correct amount of ter 1 for more information about OID and related
OID to report on your return. See Pub. 1212 for
details on how to figure the correct OID.
topics, such as market discount bonds. How To Report
Nominee. If someone else is the holder of When To Report Interest Income
record (the registered owner) of an OID instru-
ment belonging to you and receives a Form Interest Income Generally, you report all your taxable interest in-
come on Form 1040 or 1040-SR, line 2b.
1099-OID on your behalf, that person must give
you a Form 1099-OID. When to report your interest income depends
on whether you use the cash method or an ac- Schedule B (Form 1040). You must com-
Refiguring OID shown on Form 1099-OID. crual method to report income. plete Schedule B (Form 1040), Part I, if you file
You may need to refigure the OID shown in Form 1040 or 1040-SR and any of the following
box 1 or box 8 of Form 1099-OID if either of the Cash method. Most individual taxpayers use apply.
following applies. the cash method. If you use this method, you
generally report your interest income in the year 1. Your taxable interest income is more than
• You bought the debt instrument after its in which you actually or constructively receive it. $1,500.
original issue and paid a premium or an ac- However, there are special rules for reporting 2. You are claiming the interest exclusion un-
quisition premium. the discount on certain debt instruments. See der the Education Savings Bond Program
• The debt instrument is a stripped bond or a U.S. Savings Bonds and Original Issue Dis- (discussed earlier).
stripped coupon (including certain zero count (OID), earlier.
coupon instruments). 3. You received interest from a seller-fi-
Example. On September 1, 2021, you nanced mortgage, and the buyer used the
If you acquired your debt instrument before loaned another individual $2,000 at 4% interest, property as a home.
2014, your payer is only required to report a compounded annually. You aren't in the busi-
gross amount of OID in box 1 or box 8 of Form 4. You received a Form 1099-INT for U.S.
ness of lending money. The note stated that savings bond interest that includes
1099-OID. principal and interest would be due on August
For information about figuring the correct amounts you reported in a previous tax
31, 2023. In 2023, you received $2,163.20 year.
amount of OID to include in your income, see ($2,000 principal and $163.20 interest). If you
Figuring OID on Long-Term Debt Instruments in 5. You received, as a nominee, interest that
actually belongs to someone else.

6. You received a Form 1099-INT for interest premium, see the Form 1099-INT Instructions amounts reported on Form 1040-SR, are now
on frozen deposits. for Recipient. reported on Schedule 1.
7. You received a Form 1099-INT for interest Box 4 of Form 1099-INT will contain an • Scholarships and fellowship grants are
on a bond you bought between interest amount if you were subject to backup withhold- now reported on Schedule 1, line 8r.
payment dates. ing. Include the amount from box 4 on Form
1040 or 1040-SR, line 25b (federal income tax • Pension or annuity from a nonqualified de-
8. You are reporting OID in an amount less withheld). ferred compensation plan or a nongovern-
than the amount shown on Form Box 5 of Form 1099-INT shows investment mental section 457 plan is now reported on
1099-OID. expenses. This amount is not deductible. See Schedule 1, line 8t.
9. You reduce interest income from bonds by chapter 12 for more information about invest- • Wages earned while incarcerated are now
amortizable bond premium. ment expenses. reported on Schedule 1, line 8u.
Box 6 of Form 1099-INT shows foreign tax Line 6c on Forms 1040 and 1040-SR. A
In Part I, line 1, list each payer's name and the paid. You may be able to claim this tax as a de- checkbox was added on line 6c. Taxpayers who
amount received from each. If you received a duction or a credit on your Form 1040 or elect to use the lump-sum election method for
Form 1099-INT or Form 1099-OID from a bro- 1040-SR. See your tax return instructions. their benefits will check this box. See
kerage firm, list the brokerage firm as the payer. Box 7 of Form 1099-INT shows the country Lump-Sum Election in Pub. 915, Social Security
The box references discussed below or U.S. territory to which the foreign tax was and Equivalent Railroad Retirement Benefits,
are from the January 2022 revisions of paid. for details.
!
CAUTION Form 1099-INT and Form 1099-DIV.
U.S. savings bond interest previously re-
Introduction
Later revisions may have different box referen- ported. If you received a Form 1099-INT for
ces. U.S. savings bond interest, the form may show
interest you don't have to report. See Form This chapter explains the federal income tax
Reporting tax-exempt interest. Total your 1099-INT for U.S. savings bonds interest, ear- rules for social security benefits and equivalent
tax-exempt interest (such as interest or accrued lier. tier 1 railroad retirement benefits. It explains the
OID on certain state and municipal bonds, in- On Schedule B (Form 1040), Part I, line 1, following topics.
cluding zero coupon municipal bonds) reported report all the interest shown on your Form
1099-INT. Then follow these steps. • How to figure whether your benefits are
on Form 1099-INT, box 8; Form 1099-OID,
taxable.
box 11; and exempt-interest dividends from a 1. Several rows above line 2, enter a subtotal
mutual fund or other regulated investment com- of all interest listed on line 1.
• How to report your taxable benefits.
pany reported on Form 1099-DIV, box 12. Add • How to use the Social Security Benefits
these amounts to any other tax-exempt interest 2. Below the subtotal, enter “U.S. Savings Worksheet (with examples).
you received. Report the total on line 2a of Form Bond Interest Previously Reported” and
1040 or 1040-SR. enter amounts previously reported or inter- • Deductions related to your benefits and
Form 1099-INT, box 9, and Form 1099-DIV, est accrued before you received the bond. how to treat repayments that are more than
box 13, show the tax-exempt interest subject to the benefits you received during the year.
3. Subtract these amounts from the subtotal
the AMT on Form 6251. These amounts are al- and enter the result on line 2. Social security benefits include monthly re-
ready included in the amounts on Form tirement, survivor, and disability benefits. They
1099-INT, box 8, and Form 1099-DIV, box 12. More information. For more information about don’t include Supplemental Security Income
Don't add the amounts in Form 1099-INT, box 9, how to report interest income, see Publication (SSI) payments, which aren’t taxable.
and Form 1099-DIV, box 13, to, or subtract them 550, chapter 1 or the instructions for the form Equivalent tier 1 railroad retirement benefits
from, the amounts on Form 1099-INT, box 8, you must file. are the part of tier 1 benefits that a railroad em-
and Form 1099-DIV, box 12. ployee or beneficiary would have been entitled
to receive under the social security system.
Don't report interest from an IRA as
They are commonly called the social security
! tax-exempt interest.
equivalent benefit (SSEB) portion of tier 1 bene-
fits.
CAUTION
Form 1099-INT. Your taxable interest income, If you received these benefits during 2023,
except for interest from U.S. savings bonds and
Treasury obligations, is shown in box 1 of Form
7. you should have received a Form SSA-1099,
Social Security Benefit Statement; or Form
1099-INT. Add this amount to any other taxable RRB-1099, Payments by the Railroad Retire-
interest income you received. See the Form
1099-INT Instructions for Recipient if you have Social Security ment Board. These forms show the amounts re-
ceived and repaid, and taxes withheld for the
interest from a security acquired at a premium. year. You may receive more than one of these
You must report all of your taxable interest in-
come even if you don't receive a Form
and Equivalent forms for the same year. You should add the
amounts shown on all the Forms SSA-1099 and
1099-INT. Contact your financial institution if Forms RRB-1099 you receive for the year to de-
you don't receive a Form 1099-INT by February
15. Your identifying number may be truncated
Railroad termine the total amounts received and repaid,
and taxes withheld for that year. See the Appen-
on any Form 1099-INT you receive.
If you forfeited interest income because of Retirement dix at the end of Pub. 915 for more information.
the early withdrawal of a time deposit, the de- Note. When the term “benefits” is used in
ductible amount will be shown on Form
1099-INT in box 2. See Penalty on early with-
Benefits this chapter, it applies to both social security
benefits and the SSEB portion of tier 1 railroad
drawal of savings in Publication 550, chapter 1. retirement benefits.
Box 3 of Form 1099-INT shows the interest
income you received from U.S. savings bonds, Reminders my Social Security account. Social security
beneficiaries may quickly and easily obtain in-
Treasury bills, Treasury notes, and Treasury formation from the SSA's website with a my So-
bonds. Generally, add the amount shown in Lines 1a through 1z on Forms 1040 and cial Security account to:
box 3 to any other taxable interest income you 1040-SR. Line 1 was expanded and there are
received. If part of the amount shown in box 3 • Keep track of your earnings and verify
lines 1a through 1z. Some amounts that in prior them every year,
was previously included in your interest income, years were reported on Form 1040, and some
see U.S. savings bond interest previously repor- • Get an estimate of your future benefits if
ted, later. If you acquired the security at a you are still working,
62 Chapter 7 Social Security and Equivalent Railroad Retirement Publication 17 (2023)

Benefits
• Get a letter with proof of your benefits if 1. One-half of your benefits; plus
you currently receive them, Worksheet 7-1. A Quick Way To Check if Your
2. All your other income, including tax-ex- Benefits May Be Taxable
• Change your address, empt interest.
Note. If you plan to file a joint income tax return,
• Start or change your direct deposit, Exclusions. When making this comparison, include your spouse's amounts, if any, on lines
• Get a replacement Medicare card, and don’t reduce your other income by any exclu- A, C, and D.
sions for:
• Get a replacement Form SSA-1099 for the
A. Enter the total amount from
tax season. • Interest from qualified U.S. savings bonds,
box 5 of all your Forms
For more information and to set up an account, • Employer-provided adoption benefits, SSA-1099 and RRB-1099.
go to SSA.gov/myaccount. • Interest on education loans, Include the full amount of
any lump-sum benefit
What isn’t covered in this chapter. This • Foreign earned income or foreign housing, payments received in 2023,
chapter doesn’t cover the tax rules for the fol- or for 2023 and earlier years.
lowing railroad retirement benefits.
• Income earned by bona fide residents of (If you received more than
• Non-social security equivalent benefit American Samoa or Puerto Rico. one form, combine the
(NSSEB) portion of tier 1 benefits. amounts from box 5 and
Children's benefits. The rules in this chapter enter the total.) . . . . . . . A.
• Tier 2 benefits. apply to benefits received by children. See Who
Note. If the amount on line A is zero or less,
• Vested dual benefits. is taxed, later.
stop here; none of your benefits are taxable this
• Supplemental annuity benefits. Figuring total income. To figure the total of year.
For information on these benefits, see Pub. 575, one-half of your benefits plus your other in- B. Multiply line A by 50%
Pension and Annuity Income. come, use Worksheet 7-1, discussed later. If (0.50) . . . . . . . . . . . . . B.
the total is more than your base amount, part of
This chapter doesn’t cover the tax rules for C. Enter your total income that
your benefits may be taxable.
social security benefits reported on Form is taxable (excluding line A),
SSA-1042S, Social Security Benefit Statement; If you are married and file a joint return for
2023, you and your spouse must combine your such as pensions, wages,
or Form RRB-1042S, Statement for Nonresi- interest, ordinary dividends,
dent Alien Recipients of Payments by the Rail- incomes and your benefits to figure whether any
of your combined benefits are taxable. Even if and capital gain
road Retirement Board. For information about distributions. Don’t reduce
these benefits, see Pub. 519, U.S. Tax Guide for your spouse didn’t receive any benefits, you
must add your spouse's income to yours to fig- your income by any
Aliens; and Pub. 915. deductions, exclusions
ure whether any of your benefits are taxable.
This chapter also doesn’t cover the tax rules (listed earlier), or
for foreign social security benefits. These bene- If the only income you received during exemptions . . . . . . . . . . C.
fits are taxable as annuities, unless they are ex- TIP 2023 was your social security or the
empt from U.S. tax or treated as a U.S. social D. Enter any tax-exempt
SSEB portion of tier 1 railroad retire-
security benefit under a tax treaty. interest income, such as
ment benefits, your benefits generally aren’t tax-
interest on municipal
able and you probably don’t have to file a return.
bonds . . . . . . . . . . . . . D.
Useful Items If you have income in addition to your benefits,
You may want to see: you may have to file a return even if none of E. Add lines B, C, and D . . . . E.
your benefits are taxable. See Do I Have To File Note. Compare the amount on line E to your
a Return? in chapter 1, earlier; Pub. 501; or your base amount for your filing status. If the
Publication tax return instructions to find out if you have to amount on line E equals or is less than the base
501 Dependents, Standard Deduction,
501
file a return. amount for your filing status, none of your
and Filing Information benefits are taxable this year. If the amount on
Base amount. Your base amount is: line E is more than your base amount, some of
505 Tax Withholding and Estimated Tax
• $25,000 if you are single, head of house- your benefits may be taxable and you will need
505
519 U.S. Tax Guide for Aliens to complete Worksheet 1 in Pub. 915 (or the
hold, or qualifying surviving spouse;
519
575 Pension and Annuity Income Social Security Benefits Worksheet in your tax
• $25,000 if you are married filing separately form instructions). If none of your benefits are
575
590-A Contributions to Individual

590-A
and lived apart from your spouse for all of taxable, but you must otherwise file a tax return,
Retirement Arrangements (IRAs) 2023; see Benefits not taxable, later, under How To
915 Social Security and Equivalent
915
• $32,000 if you are married filing jointly; or Report Your Benefits.

Railroad Retirement Benefits
• $0 if you are married filing separately and
lived with your spouse at any time during Example. You and your spouse (both over
Form (and Instructions) 65) are filing a joint return for 2023 and you both
2023.
1040-ES Estimated Tax for Individuals received social security benefits during the year.
Worksheet 7-1. You can use Worksheet 7-1 to In January 2024, you received a Form
1040-ES
SSA-1099 Social Security Benefit figure the amount of income to compare with SSA-1099 showing net benefits of $1,500 in
SSA-1099
Statement your base amount. This is a quick way to check box 5. Your spouse received a Form SSA-1099
RRB-1099 Payments by the Railroad RRB-1099
whether some of your benefits may be taxable. showing net benefits of $700 in box 5. You also
Retirement Board received a taxable pension of $30,100 and in-
W-4V Voluntary Withholding Request terest income of $700. You didn’t have any
tax-exempt interest income. Your benefits aren’t
W-4V
For these and other useful items, go to IRS.gov/ taxable for 2023 because your income, as fig-
Forms. ured in Worksheet 7-1, isn’t more than your
base amount ($32,000) for married filing jointly.
Are Any of Your Even though none of your benefits are taxa-
ble, you must file a return for 2023 because your
Benefits Taxable? taxable gross income ($30,800) exceeds the
minimum filing requirement amount for your fil-
To find out whether any of your benefits may be ing status.
taxable, compare the base amount (explained
later) for your filing status with the total of:
Publication 17 (2023) Chapter 7 Social Security and Equivalent Railroad Retirement 63

Benefits
Your gross benefits are shown in box 3 of use the special worksheets in Appendix B
Filled-in Worksheet 7-1. A Quick Way To Form SSA-1099 or RRB-1099. Your repayments of Pub. 590-A to figure both your IRA de-
Check if Your Benefits May Be Taxable are shown in box 4. The amount in box 5 shows duction and your taxable benefits.
Note. If you plan to file a joint income tax return, your net benefits for 2023 (box 3 minus box 4).
2. Situation 1 doesn’t apply and you take an
include your spouse's amounts, if any, on lines Use the amount in box 5 to figure whether any
exclusion for interest from qualified U.S.
A, C, and D. of your benefits are taxable.
savings bonds (Form 8815), for adoption
Tax withholding and estimated tax. You can benefits (Form 8839), for foreign earned
A. Enter the total amount from
choose to have federal income tax withheld income or housing (Form 2555), or for in-
from your social security benefits and/or the come earned in American Samoa (Form
SSA-1099 and RRB-1099.
SSEB portion of your tier 1 railroad retirement 4563) or Puerto Rico by bona fide resi-
Include the full amount of
benefits. If you choose to do this, you must dents. In this situation, you must use
any lump-sum benefit
complete a Form W-4V. Worksheet 1 in Pub. 915 to figure your tax-
payments received in 2023,
If you don’t choose to have income tax with- able benefits.
for 2023 and earlier years.
held, you may have to request additional with- 3. You received a lump-sum payment for an
(If you received more than
holding from other income or pay estimated tax earlier year. In this situation, also complete
one form, combine the
during the year. For details, see chapter 4, ear- Worksheet 2 or 3 and Worksheet 4 in Pub.
amounts from box 5 and
lier; Pub. 505; or the Instructions for Form 915. See Lump-sum election next.
enter the total.) . . . . . . . A. $2,200
1040-ES.
Note. If the amount on line A is zero or less,
Lump-sum election. You must include the tax-
How To Report Your
stop here; none of your benefits are taxable this
able part of a lump-sum (retroactive) payment
year.
of benefits received in 2023 in your 2023 in-
B. Multiply line A by 50% Benefits come, even if the payment includes benefits for
(0.50) . . . . . . . . . . . . . B. 1,100 an earlier year.
C. Enter your total income that If part of your benefits are taxable, you must use
Line 6c: Check the box on line 6c if you
is taxable (excluding line A), Form 1040 or 1040-SR.
TIP elect to use the lump-sum election
such as pensions, wages, Reporting on Form 1040 or 1040-SR. Report method for your benefits. If any of your
interest, ordinary dividends, your net benefits (the total amount from box 5 of benefits are taxable for 2023 and they include a
and capital gain all your Forms SSA-1099 and Forms lump-sum benefit payment that was for an ear-
distributions. Don’t reduce RRB-1099) on line 6a and the taxable part on lier year, you may be able to reduce the taxable
your income by any line 6b. If you are married filing separately and amount with the lump-sum election. See
deductions, exclusions you lived apart from your spouse for all of 2023, Lump-Sum Election in Pub. 915 for details.
(listed earlier), or also enter “D” to the right of the word “benefits”
exemptions . . . . . . . . . . C. 30,800 on line 6a. This type of lump-sum benefit payment
D. Enter any tax-exempt TIP shouldn’t be confused with the
Benefits not taxable. Report your net benefits lump-sum death benefit that both the
interest income, such as (the total amount from box 5 of all your Forms
interest on municipal SSA and RRB pay to many of their beneficia-
SSA-1099 and Forms RRB-1099) on Form ries. No part of the lump-sum death benefit is
bonds . . . . . . . . . . . . D. -0- 1040 or 1040-SR, line 6a. Enter -0- on Form subject to tax.
E. Add lines B, C, and D . . . E. $31,900 1040 or 1040-SR, line 6b. If you are married fil-
ing separately and you lived apart from your Generally, you use your 2023 income to fig-
Note. Compare the amount on line E to your
spouse for all of 2023, also enter “D” to the right ure the taxable part of the total benefits re-
base amount for your filing status. If the
of the word “benefits” on Form 1040 or ceived in 2023. However, you may be able to
amount on line E equals or is less than the base
1040-SR, line 6a. figure the taxable part of a lump-sum payment
amount for your filing status, none of your
for an earlier year separately, using your income
benefits are taxable this year. If the amount on
for the earlier year. You can elect this method if
line E is more than your base amount, some of How Much Is Taxable? it lowers your taxable benefits.
your benefits may be taxable and you will need
to complete Worksheet 1 in Pub. 915 (or the If part of your benefits are taxable, how much is Making the election. If you received a
Social Security Benefits Worksheet in your tax taxable depends on the total amount of your lump-sum benefit payment in 2023 that includes
form instructions). If none of your benefits are benefits and other income. Generally, the higher benefits for one or more earlier years, follow the
taxable, but you otherwise must file a tax return, that total amount, the greater the taxable part of instructions in Pub. 915 under Lump-Sum Elec-
see Benefits not taxable, later, under How To your benefits. tion to see whether making the election will
Report Your Benefits. lower your taxable benefits. That discussion
Maximum taxable part. Generally, up to 50%
also explains how to make the election.
Who is taxed. Benefits are included in the tax- of your benefits will be taxable. However, up to
able income (to the extent they are taxable) of 85% of your benefits can be taxable if either of Because the earlier year's taxable ben-
the person who has the legal right to receive the the following situations applies to you. ! efits are included in your 2023 income,
CAUTION no adjustment is made to the earlier
benefits. For example, if you and your child re- • The total of one-half of your benefits and all
ceive benefits, but the check for your child is your other income is more than $34,000 year's return. Don’t file an amended return for
made out in your name, you must use only your ($44,000 if you are married filing jointly). the earlier year.
part of the benefits to see whether any benefits
• You are married filing separately and lived
are taxable to you. One-half of the part that be-
longs to your child must be added to your child's
with your spouse at any time during 2023. Examples
other income to see whether any of those bene- Which worksheet to use. A worksheet you
The following are a few examples you can use
fits are taxable to your child. can use to figure your taxable benefits is in the
as a guide to figure the taxable part of your ben-
Instructions for Form 1040. You can use either
Repayment of benefits. Any repayment of efits.
that worksheet or Worksheet 1 in Pub. 915, un-
benefits you made during 2023 must be sub-
less any of the following situations applies to
tracted from the gross benefits you received in Example 1. George White is single and
you.
2023. It doesn’t matter whether the repayment files Form 1040 for 2023. He received the fol-
was for a benefit you received in 2023 or in an 1. You contributed to a traditional individual lowing income in 2023.
earlier year. If you repaid more than the gross retirement arrangement (IRA) and you or
benefits you received in 2023, see Repayments your spouse is covered by a retirement
More Than Gross Benefits, later. plan at work. In this situation, you must

Benefits
Fully taxable pension . . . . . . . . $18,600 Note. If you are married filing separately Filled-in Worksheet 1.
Wages from part-time job . . . . . 9,400
and you lived with your spouse at any Figuring Your Taxable Benefits
time in 2023, skip lines 9 through 16,
Taxable interest income . . . . . . 990
multiply line 8 by 85% (0.85), and enter 1. Enter the total amount from
Total . . . . . . . . . . . . . . . . . . $28,990 the result on line 17. Then, go to line 18. box 5 of all your Forms
10. Is the amount on line 9 less than the SSA-1099 and RRB-1099. Also
George also received social security bene- amount on line 8? enter this amount on Form 1040
fits during 2023. The Form SSA-1099 he re- STOP
or 1040-SR, line 6a . . . . . . . $5,600
ceived in January 2024 shows $5,980 in box 5. No. None of your benefits are 2. Multiply line 1 by 50% (0.50) . . . 2,800
To figure his taxable benefits, George com- taxable. Enter -0- on Form 1040 or 3. Combine the amounts from Form
pletes the worksheet shown here. 1040-SR, line 6b. If you are married 1040 or 1040-SR, lines 1z, 2b,
filing separately and you lived apart 3b, 4b, 5b, 7, and 8 . . . . . . . . 29,750
Filled-in Worksheet 1. from your spouse for all of 2023, be sure 4. Enter the amount, if any, from
Figuring Your Taxable Benefits you entered “D” to the right of the word Form 1040 or 1040-SR,
“benefits” on Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . -0-
1. Enter the total amount from line 6a.
Yes. Subtract line 9 from line 8 . . . . . 6,980 5. Enter the total of any exclusions/
11. Enter $12,000 if married filing jointly; or adjustments for:
SSA-1099 and RRB-1099. Also
enter this amount on Form 1040 $9,000 if single, head of household, • Adoption benefits (Form 8839,
qualifying surviving spouse, or married line 28),
or 1040-SR, line 6a . . . . . . . $5,980
filing separately and you lived apart • Foreign earned income or housing
2. Multiply line 1 by 50% (0.50) . . . . . . . 2,990 (Form 2555, lines 45 and 50), and
3. Combine the amounts from Form 1040 from your spouse for all of 2023 . . . . . 9,000
12. Subtract line 11 from line 10. If zero or • Certain income of bona fide
or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, residents of American Samoa
less, enter -0- . . . . . . . . . . . . . . . -0-
and 8 . . . . . . . . . . . . . . . . . . . 28,990 (Form 4563, line 15) or Puerto
4. Enter the amount, if any, from Form 13. Enter the smaller of line 10
Rico . . . . . . . . . . . . . . . . -0-
1040 or 1040-SR, line 2a . . . . . . . . -0- or line 11 . . . . . . . . . . . . . . . . . 6,980
5. Enter the total of any exclusions/ 14. Multiply line 13 by 50% (0.50) . . . . . . 3,490
6. Combine lines 2, 3, 4, and 5
adjustments for: 15. Enter the smaller of line 2 or line 14 . . 2,990 above . . . . . . . . . . . . . . . 32,550
• Adoption benefits (Form 8839, 16. Multiply line 12 by 85% (0.85). If line 12 7. Enter the total of the amounts
line 28), is zero, enter -0- . . . . . . . . . . . . . -0- from Schedule 1 (Form 1040),
• Foreign earned income or housing 17. Add lines 15 and 16 . . . . . . . . . . . 2,990 lines 11 through 20, and 23 and
(Form 2555, lines 45 and 50), and 25 . . . . . . . . . . . . . . . . . 1,000
18. Multiply line 1 by 85% (0.85) . . . . . . . 5,083
• Certain income of bona fide 8. Is the amount on line 7 less than the
19. Taxable benefits. Enter the smaller of
residents of American Samoa amount on line 6?
line 17 or line 18. Also enter this amount
(Form 4563, line 15) or Puerto
-0- on Form 1040 or 1040-SR, line 6b . . . $2,990
No. None of your social security
STOP
Rico . . . . . . . . . . . . . . . .
6. Combine lines 2, 3, 4, and 5 above . . . 31,980 benefits are taxable. Enter -0- on Form
The amount on line 19 of George's work-
7. Enter the total of the amounts from 1040 or 1040-SR, line 6b.
sheet shows that $2,990 of his social security
Schedule 1 (Form 1040), lines 11 Yes. Subtract line 7 from
benefits is taxable. On line 6a of his Form 1040, 31,550
through 20, and 23 and 25 . . . . . -0- line 6 . . . . . . . . . . . . . . .
. . . George enters his net benefits of $5,980. On 9. If you are:
8. Is the amount on line 7 less than the line 6b, he enters his taxable benefits of $2,990.
amount on line 6? • Married filing jointly, enter
$32,000; or
Example 2. Ray and Alice Hopkins file a • Single, head of household,
STOP
benefits are taxable. Enter -0- on Form

joint return on Form 1040 for 2023. Ray is re- qualifying surviving spouse, or
1040 or 1040-SR, line 6b. tired and received a fully taxable pension of married filing separately and you
Yes. Subtract line 7 from line 6 . . . . . 31,980 $15,500. He also received social security bene- lived apart from your spouse for
fits, and his Form SSA-1099 for 2023 shows net all of 2023, enter $25,000 . . . . 32,000
9. If you are:
• Married filing jointly, enter benefits of $5,600 in box 5. Alice worked during Note. If you are married filing separately
$32,000; or the year and had wages of $14,000. She made and you lived with your spouse at any
• Single, head of household, a deductible payment to her IRA account of time in 2023, skip lines 9 through 16,
$1,000 and isn’t covered by a retirement plan at multiply line 8 by 85% (0.85), and enter
qualifying surviving spouse, or
work. Ray and Alice have two savings accounts the result on line 17. Then, go to line 18.
married filing separately and you
with a total of $250 in taxable interest income. 10. Is the amount on line 9 less than the
lived apart from your spouse for
25,000 They complete Worksheet 1, shown below, en- amount on line 8?
all of 2023, enter $25,000 . . . .
tering $29,750 ($15,500 + $14,000 + $250) on STOP
line 3. They find none of Ray's social security No. None of your benefits are
taxable. Enter -0- on Form 1040 or
benefits are taxable. On Form 1040, they enter
1040-SR, line 6b. If you are married
$5,600 on line 6a and -0- on line 6b.
filing separately and you lived apart
from your spouse for all of 2023, be sure
you entered “D” to the right of the word
“benefits” on Form 1040 or 1040-SR,
line 6a.
Yes. Subtract line 9 from line 8 . . . . .
Publication 17 (2023) Chapter 7 Social Security and Equivalent Railroad Retirement 65

Benefits
11. Enter $12,000 if married filing jointly; or Filled-in Worksheet 1. Note. If you are married filing separately
$9,000 if single, head of household, Figuring Your Taxable Benefits and you lived with your spouse at any
qualifying surviving spouse, or married time in 2023, skip lines 9 through 16,
filing separately and you lived apart Before you begin: multiply line 8 by 85% (0.85), and enter
from your spouse for all of 2023 . . . . . • If you are married filing separately and you lived the result on line 17. Then, go to line 18.
12. Subtract line 11 from line 10. If zero or apart from your spouse for all of 2023, enter “D” 10. Is the amount on line 9 less than the
less, enter -0- . . . . . . . . . . . . . . . to the right of the word “benefits” on Form 1040 amount on line 8?
13. Enter the smaller of line 10 or 1040-SR, line 6a. STOP
or line 11 . . . . . . . . . . . . . . . . . • Don’t use this worksheet if you repaid benefits No. None of your benefits are
14. Multiply line 13 by 50% (0.50) . . . . . . in 2023 and your total repayments (box 4 of taxable. Enter -0- on Form 1040 or
15. Enter the smaller of line 2 or line 14 . . Forms SSA-1099 and RRB-1099) were more 1040-SR, line 6b. If you are married
16. Multiply line 12 by 85% (0.85). If line 12 than your gross benefits for 2023 (box 3 of filing separately and you lived apart
is zero, enter -0- . . . . . . . . . . . . . Forms SSA-1099 and RRB-1099). None of your from your spouse for all of 2023, be sure
17. Add lines 15 and 16 . . . . . . . . . . . benefits are taxable for 2023. For more you entered “D” to the right of the word
information, see Repayments More Than Gross “benefits” on Form 1040 or 1040-SR,
18. Multiply line 1 by 85% (0.85) . . . . . . .
Benefits, later. line 6a.
19. Taxable benefits. Enter the smaller of • If you are filing Form 8815, Exclusion of Interest Yes. Subtract line 9 from line 8 . . . . . 13,500
line 17 or line 18. Also enter this amount From Series EE and I U.S. Savings Bonds 11. Enter $12,000 if married filing jointly; or
on Form 1040 or 1040-SR, line 6b . . . Issued After 1989, don’t include the amount $9,000 if single, head of household,
from line 2b of Form 1040 or 1040-SR on line 3 qualifying surviving spouse, or married
Example 3. Joe and Betty Johnson file a of this worksheet. Instead, include the amount filing separately and you lived apart
joint return on Form 1040 for 2023. Joe is a re- from Schedule B (Form 1040), line 2. from your spouse for all of 2023 . . . . . 12,000
tired railroad worker and in 2023 received the 1. Enter the total amount from 12. Subtract line 11 from line 10. If zero or
SSEB portion of tier 1 railroad retirement bene- less, enter -0- . . . . . . . . . . . . . . . 1,500
fits. Joe's Form RRB-1099 shows $10,000 in SSA-1099 and RRB-1099. Also 13. Enter the smaller of line 10
or line 11 . . . . . . . . . . . . . . . . . 12,000
box 5. Betty is a retired government worker and enter this amount on Form 1040
received a fully taxable pension of $38,000. or 1040-SR, line 6a . . . . . . . $10,000 14. Multiply line 13 by 50% (0.50) . . . . . . 6,000
They had $2,300 in taxable interest income plus 2. Multiply line 1 by 50% (0.50) . . . . . . . 5,000 15. Enter the smaller of line 2 or line 14 . . 5,000
interest of $200 on a qualified U.S. savings 3. Combine the amounts from Form 1040 16. Multiply line 12 by 85% (0.85). If line 12
bond. The savings bond interest qualified for or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, is zero, enter -0- . . . . . . . . . . . . . 1,275
the exclusion. They figure their taxable benefits and 8 . . . . . . . . . . . . . . . . . . . 40,500 17. Add lines 15 and 16 . . . . . . . . . . . 6,275
by completing Worksheet 1, shown below. Be- 4. Enter the amount, if any, from Form 18. Multiply line 1 by 85% (0.85) . . . . . . . 8,500
cause they have qualified U.S. savings bond in- 1040 or 1040-SR, line 2a . . . . . . . . -0-
19. Taxable benefits. Enter the smaller of
terest, they follow the note at the beginning of line 17 or line 18. Also enter this amount
5. Enter the total of any exclusions/
the worksheet and use the amount from line 2 of on Form 1040 or 1040-SR, line 6b . . . $6,275
adjustments for:
their Schedule B (Form 1040) on line 3 of the • Adoption benefits (Form 8839,
worksheet instead of the amount from line 2b of line 28),
More than 50% of Joe's net benefits are tax-
their Form 1040. On line 3 of the worksheet, • Foreign earned income or housing able because the income on line 8 of the work-
they enter $40,500 ($38,000 + $2,500). (Form 2555, lines 45 and 50), and sheet ($45,500) is more than $44,000. (See
• Certain income of bona fide Maximum taxable part under How Much Is Tax-
residents of American Samoa able, earlier.) Joe and Betty enter $10,000 on
(Form 4563, line 15) or Puerto Form 1040, line 6a; and $6,275 on Form 1040,
Rico . . . . . . . . . . . . . . . . -0- line 6b.
Deductions Related to
6. Combine lines 2, 3, 4, and 5 above . . . 45,500
7. Enter the total of the amounts from
Schedule 1 (Form 1040), lines 11
through 20, and 23 and 25 . . . . . . . . -0- Your Benefits
8. Is the amount on line 7 less than the
You may be entitled to deduct certain amounts
amount on line 6?
related to the benefits you receive.
STOP
Disability payments. You may have received
benefits are taxable. Enter -0- on Form disability payments from your employer or an in-
1040 or 1040-SR, line 6b. surance company that you included as income
Yes. Subtract line 7 from line 6 . . . . . 45,500
on your tax return in an earlier year. If you re-
9. If you are: ceived a lump-sum payment from the SSA or
• Married filing jointly, enter RRB, and you had to repay the employer or in-
$32,000; or surance company for the disability payments,
• Single, head of household, you can take an itemized deduction for the part
qualifying surviving spouse, or
of the payments you included in gross income
married filing separately and you
in the earlier year. If the amount you repay is
lived apart from your spouse for
all of 2023, enter $25,000 . . . . 32,000 more than $3,000, you may be able to claim a
tax credit instead. Claim the deduction or credit
in the same way explained under Repayment of
benefits received in an earlier year under Re-
payments More Than Gross Benefits next.
Repayments More Than

Gross Benefits
In some situations, your Form SSA-1099 or
RRB-1099 will show that the total benefits you
repaid (box 4) are more than the gross benefits
(box 3) you received. If this occurred, your net

Benefits
benefits in box 5 will be a negative figure (a fig- Useful Items
ure in parentheses) and none of your benefits You may want to see:
will be taxable. Don’t use a worksheet in this
case. If you receive more than one form, a neg- 8. Publication
ative figure in box 5 of one form is used to offset
a positive figure in box 5 of another form for that 502 Medical and Dental Expenses
same year. Other Income
502
If you have any questions about this nega- 504 Divorced or Separated Individuals
504
tive figure, contact your local SSA office or your 523 Selling Your Home
local RRB field office.
What’s New
523
525 Taxable and Nontaxable Income

Joint return. If you and your spouse file a joint
525
return, and your Form SSA-1099 or RRB-1099 544 Sales and Other Dispositions of
has a negative figure in box 5, but your spouse's Temporary allowance of 100% business
544
Assets
doesn’t, subtract the amount in box 5 of your meal deduction has expired. Section 210 of
form from the amount in box 5 of your spouse's the Taxpayer Certainty and Disaster Tax Relief 547 Casualties, Disasters, and Thefts
547
form. You do this to get your net benefits when Act of 2020 provided for the temporary allow-
figuring if your combined benefits are taxable. ance of a 100% business meal deduction for
550
food or beverages provided by a restaurant and 4681 Canceled Debts, Foreclosures,

Example. John and Mary file a joint return paid or incurred after December 31, 2020, and
4681
Repossessions, and Abandonments

for 2023. John received Form SSA-1099 show- before January 1, 2023.
ing $3,000 in box 5. Mary also received Form For these and other useful items, go to IRS.gov/
Forms.
SSA-1099 and the amount in box 5 was ($500).
John and Mary will use $2,500 ($3,000 minus Reminders
$500) as the amount of their net benefits when
figuring if any of their combined benefits are tax- Unemployment compensation. If you re-
Bartering
able. ceived unemployment compensation but did not Bartering is an exchange of property or serv-
receive Form 1099-G, Certain Government Pay- ices. You must include in your income, at the
Repayment of benefits received in an ear-
ments, through the mail, you may need to ac- time received, the fair market value of property
lier year. If the total amount shown in box 5 of
cess your information through your state’s web- or services you receive in bartering. If you ex-
all of your Forms SSA-1099 and RRB-1099 is a
site to get your electronic Form 1099-G. change services with another person and you
negative figure, you may be able to deduct part
of this negative figure that represents benefits both have agreed ahead of time on the value of
the services, that value will be accepted as fair
you included in gross income in an earlier year if
the figure is more than $3,000. If the figure is Introduction market value unless the value can be shown to
$3,000 or less, it is a miscellaneous itemized be otherwise.
You must include on your return all items of in-
deduction and can no longer be deducted. come you receive in the form of money, prop- Generally, you report this income on Sched-
Deduction more than $3,000. If this de- erty, and services unless the tax law states that ule C (Form 1040), Profit or Loss From Busi-
duction is more than $3,000, you should figure you don’t include them. Some items, however, ness. However, if the barter involves an ex-
your tax two ways. are only partly excluded from income. This change of something other than services, such
chapter discusses many kinds of income and as in Example 3 below, you may have to use an-
1. Figure your tax for 2023 with the itemized explains whether they’re taxable or nontaxable. other form or schedule instead.
deduction included on Schedule A (Form
1040), line 16. • Income that’s taxable must be reported on
your tax return and is subject to tax. Example 1. You’re a self-employed attor-
2. Figure your tax for 2023 in the following ney who performs legal services for a client, a
steps.
• Income that’s nontaxable may have to be small corporation. The corporation gives you
shown on your tax return but isn’t taxable. shares of its stock as payment for your services.
a. Figure the tax without the itemized de- You must include the fair market value of the
This chapter begins with discussions of the
duction included on Schedule A shares in your income on Schedule C (Form
following income items.
(Form 1040), line 16. 1040) in the year you receive them.
• Bartering.
b. For each year after 1983 for which
part of the negative figure represents • Canceled debts. Example 2. You’re self-employed and a
a repayment of benefits, refigure your • Sales parties at which you’re the host or member of a barter club. The club uses “credit
taxable benefits as if your total bene- hostess. units” as a means of exchange. It adds credit
fits for the year were reduced by that units to your account for goods or services you
part of the negative figure. Then refig- • Life insurance proceeds. provide to members, which you can use to pur-
ure the tax for that year. • Partnership income. chase goods or services offered by other mem-
bers of the barter club. The club subtracts credit
c. Subtract the total of the refigured tax • S corporation income. units from your account when you receive
amounts in (b) from the total of your • Recoveries (including state income tax re- goods or services from other members. You
actual tax amounts. funds). must include in your income the value of the
d. Subtract the result in (c) from the re- credit units that are added to your account,
• Rents from personal property.
even though you may not actually receive goods
sult in (a).
• Repayments. or services from other members until a later tax
Compare the tax figured in methods 1 and 2. year.
Your tax for 2023 is the smaller of the two
• Royalties.
amounts. If method 1 results in less tax, take • Unemployment benefits. Example 3. You own a small apartment
the itemized deduction on Schedule A (Form • Welfare and other public assistance bene- building. In return for 6 months rent-free use of
1040), line 16. If method 2 results in less tax, fits. an apartment, an artist gives you a work of art
claim a credit for the amount from step 2c she created. You must report as rental income
above on Schedule 3 (Form 1040), line 13z. En- These discussions are followed by brief discus- on Schedule E (Form 1040), Supplemental In-
ter “I.R.C. 1341” on the entry line. If both meth- sions of other income items. come and Loss, the fair market value of the art-
ods produce the same tax, deduct the repay- work, and the artist must report as income on
ment on Schedule A (Form 1040), line 16. Schedule C (Form 1040) the fair rental value of
the apartment.
Publication 17 (2023) Chapter 8 Other Income 67

Form 1099-B from barter exchange. If you included in the amount you realize. You may The cancellation of your loan won’t
exchanged property or services through a bar- have a taxable gain if the amount you realize ex- ! qualify for tax-free treatment if it was
ter exchange, Form 1099-B, Proceeds From ceeds your adjusted basis in the property. Re- CAUTION made by an educational organization or
Broker and Barter Exchange Transactions, or a port any gain on nonbusiness property as a tax-exempt section 501(c)(3) organization and
similar statement from the barter exchange capital gain. was canceled because of the services you per-
should be sent to you by February 15, 2024. It See Pub. 4681 for more information. formed for either organization. See Exception,
should show the value of cash, property, serv- later.
ices, credits, or scrip you received from ex- Stockholder debt. If you’re a stockholder in a
changes during 2023. The IRS will also receive corporation and the corporation cancels or for-
gives your debt to it, the canceled debt is a con- Educational organization described in
a copy of Form 1099-B.
structive distribution that’s generally dividend in- section 170(b)(1)(A)(ii). This is an educa-
come to you. For more information, see Pub. tional organization that maintains a regular fac-
Canceled Debts 542, Corporations. ulty and curriculum and normally has a regularly
If you’re a stockholder in a corporation and enrolled body of students in attendance at the
In most cases, if a debt you owe is canceled or you cancel a debt owed to you by the corpora- place where it carries on its educational activi-
forgiven, other than as a gift or bequest, you tion, you generally don’t realize income. This is ties.
must include the canceled amount in your in- because the canceled debt is considered as a
come. You have no income from the canceled contribution to the capital of the corporation Qualified lenders. These include the fol-
debt if it’s intended as a gift to you. A debt in- equal to the amount of debt principal that you lowing.
cludes any indebtedness for which you’re liable canceled. 1. The United States, or an instrumentality or
or which attaches to property you hold.
Repayment of canceled debt. If you included agency thereof.
If the debt is a nonbusiness debt, report the a canceled amount in your income and later pay 2. A state or territory of the United States; or
canceled amount on Schedule 1 (Form 1040), the debt, you may be able to file a claim for re- the District of Columbia; or any political
line 8c. If it’s a business debt, report the amount fund for the year the amount was included in in- subdivision thereof.
on Schedule C (Form 1040) (or on Schedule F come. You can file a claim on Form 1040-X,
(Form 1040), Profit or Loss From Farming, if the Amended U.S. Individual Income Tax Return, if 3. A public benefit corporation that is tax-ex-
debt is farm debt and you’re a farmer). the statute of limitations for filing a claim is still empt under section 501(c)(3); and that
open. The statute of limitations generally has assumed control of a state, county, or
Form 1099-C. If a federal government agency, municipal hospital; and whose employees
financial institution, or credit union cancels or doesn’t end until 3 years after the due date of
your original return. are considered public employees under
forgives a debt you owe of $600 or more, you state law.
will receive a Form 1099-C, Cancellation of
Debt. The amount of the canceled debt is Exceptions 4. An educational organization described in
section 170(b)(1)(A)(ii), if the loan is
shown in box 2.
There are several exceptions to the inclusion of made:
Interest included in canceled debt. If any
canceled debt in income. These are explained a. As part of an agreement with an entity
interest is forgiven and included in the amount
next. described in (1), (2), or (3) under
of canceled debt in box 2, the amount of inter-
est will also be shown in box 3. Whether or not which the funds to make the loan were
Student loans. Generally, if you are responsi-
you must include the interest portion of the can- provided to the educational organiza-
ble for making loan payments, and the loan is
celed debt in your income depends on whether tion; or
canceled or repaid by someone else, you must
the interest would be deductible when you paid include the amount that was canceled or paid b. Under a program of the educational
it. See Deductible debt under Exceptions, later. on your behalf in your gross income for tax pur- organization that is designed to en-
If the interest wouldn’t be deductible (such poses. However, in certain circumstances, you courage its students to serve in occu-
as interest on a personal loan), include in your may be able to exclude amounts from gross in- pations with unmet needs or in areas
income the amount from box 2 of Form 1099-C. come as a result of the cancellation or repay- with unmet needs where services pro-
If the interest would be deductible (such as on a ment of certain student loans. These exclusions vided by the students (or former stu-
business loan), include in your income the net are for: dents) are for or under the direction of
amount of the canceled debt (the amount a governmental unit or a tax-exempt
shown in box 2 less the interest amount shown
• Student loan cancellation due to meeting
certain work requirements; section 501(c)(3) organization.
in box 3).
• Cancellation of certain loans after Decem- Special rule for student loan discharges for
Discounted mortgage loan. If your financial 2021 through 2025. The American Rescue
ber 31, 2020, and before January 1, 2026
institution offers a discount for the early pay- Plan Act of 2021 modified the treatment of stu-
(see Special rule for student loan dis-
ment of your mortgage loan, the amount of the dent loan forgiveness for discharges in 2021
charges for 2021 through 2025); or
discount is canceled debt. You must include the through 2025. Generally, if you are responsible
canceled amount in your income. • Certain student loan repayment assistance for making loan payments, and the loan is can-
programs.
Mortgage relief upon sale or other disposi- celed or repaid by someone else, you must in-
tion. If you’re personally liable for a mortgage Exclusion for student loan cancellation due clude the amount that was canceled or paid on
(recourse debt), and you’re relieved of the mort- to meeting certain work requirements. If your behalf in your gross income for tax purpo-
gage when you dispose of the property, you your student loan is canceled in part or in whole ses. However, in certain circumstances, you
may realize gain or loss up to the fair market in 2023 due to meeting certain work require- may be able to exclude this amount from gross
value of the property. Also, to the extent the ments, you may not have to include the can- income if the loan was one of the following.
mortgage discharge exceeds the fair market celed debt in your income. To qualify for this • A loan for postsecondary educational ex-
value of the property, it’s income from discharge work-related exclusion, your loan must have penses.
of indebtedness unless it qualifies for exclusion been made by a qualified lender to assist you in
under Excluded debt, later. Report any income attending an eligible educational organization • A private education loan.
from discharge of indebtedness on nonbusi- described in section 170(b)(1)(A)(ii). In addition, • A loan from an educational organization
ness debt that doesn’t qualify for exclusion as the cancellation must be pursuant to a provision described in section 170(b)(1)(A)(ii).
other income on Schedule 1 (Form 1040), in the student loan that all or part of the debt will
be canceled if you work: • A loan from an organization exempt from
line 8c.
tax under section 501(a) to refinance a stu-
If you aren’t personally liable for a mortgage • For a certain period of time, dent loan.
(nonrecourse debt), and you’re relieved of the
mortgage when you dispose of the property • In certain professions, and See Pub. 4681 and Pub. 970 for more informa-
(such as through foreclosure), that relief is • For any of a broad class of employers. tion.
68 Chapter 8 Other Income Publication 17 (2023)

Loan for postsecondary educational expen- any loan made by the organization if the loan is Student loan repayment assistance. Stu-
ses. This is any loan provided expressly for made: dent loan repayments made to you are tax free
postsecondary education, regardless of if you received them for any of the following.
• As part of an agreement with an entity de-
whether provided through the educational or- scribed earlier under which the funds to • The National Health Service Corps
ganization or directly to the borrower, if such make the loan were provided to the educa- (NHSC) Loan Repayment Program.
loan was made, insured, or guaranteed by one tional organization; or
of the following. • A state education loan repayment program
• Under a program of the educational organi- eligible for funds under the Public Health
• The United States, or an instrumentality or zation that is designed to encourage its Service Act.
agency thereof. students to serve in occupations with un-
• Any other state loan repayment or loan for-
• A state or territory of the United States; or met needs or in areas with unmet needs giveness program that is intended to pro-
the District of Columbia; or any political where the services provided by the stu- vide for the increased availability of health
subdivision thereof. dents (or former students) are for or under services in underserved or health profes-
the direction of a governmental unit or
• An eligible educational organization. sional shortage areas (as determined by
tax-exempt section 501(c)(3) organization. such a state).
Eligible educational organization. An eligi-
Educational organization described in sec-
ble educational organization is generally any You can’t deduct the interest you paid
tion 170(b)(1)(A)(ii). This is an educational
accredited public, nonprofit, or proprietary (pri- ! on a student loan to the extent pay-
organization that maintains a regular faculty and
vately owned profit-making) college, university, CAUTION ments were made through your partici-
curriculum and normally has a regularly enrolled
vocational school, or other postsecondary edu- pation in any of the above programs.
body of students in attendance at the place
cational organization. Also, the organization
where it carries on its educational activities. Deductible debt. You don’t have income from
must be eligible to participate in a student aid
program administered by the U.S. Department The cancellation of your loan won’t the cancellation of a debt if your payment of the
of Education. qualify for tax-free treatment if it was debt would be deductible. This exception ap-
An eligible educational organization also in-
!
CAUTION made by an educational organization, a plies only if you use the cash method of ac-
cludes certain educational organizations loca- tax-exempt section 501(c)(3) organization, or a counting. For more information, see chapter 5 of
ted outside the United States that are eligible to private education lender (as defined in section Pub. 334, Tax Guide for Small Business.
participate in a student aid program adminis- 140(a)(7) of the Truth in Lending Act) and was Price reduced after purchase. In most ca-
tered by the U.S. Department of Education. canceled because of the services you per- ses, if the seller reduces the amount of debt you
formed for either such organization or private owe for property you purchased, you don’t have
The educational organization should
education lender. See Exception, later. income from the reduction. The reduction of the
TIP be able to tell you if it is an eligible edu-
cational organization. debt is treated as a purchase price adjustment
Section 501(c)(3) organization. This is and reduces your basis in the property.
any corporation, community chest, fund, or
Private education loan. A private education
foundation organized and operated exclusively Excluded debt. Don’t include a canceled debt
loan is a loan provided by a private educational
for one or more of the following purposes. in your gross income in the following situations.
lender that:
• Charitable. • The debt is canceled in a bankruptcy case
• Is not made, insured, or guaranteed under under title 11 of the U.S. Code. See Pub.
Title IV of the Higher Education Act of • Religious.
908, Bankruptcy Tax Guide.
1965; and • Educational.
• The debt is canceled when you’re insol-
• Is issued expressly for postsecondary edu- • Scientific. vent. However, you can’t exclude any
cational expenses to a borrower, regard-
• Literary. amount of canceled debt that’s more than
less of whether the loan is provided the amount by which you’re insolvent. See
through the educational organization that • Testing for public safety. Pub. 908.
the student attends or directly to the bor-
rower from the private educational lender. • Fostering national or international amateur • The debt is qualified farm debt and is can-
A private education loan does not include sports competition (but only if none of its celed by a qualified person. See chapter 3
an extension of credit under an open end activities involve providing athletic facilities of Pub. 225, Farmer's Tax Guide.
consumer credit plan, a reverse mortgage or equipment).
• The debt is qualified real property business
transaction, a residential mortgage trans- • The prevention of cruelty to children or ani- debt. See chapter 5 of Pub. 334.
action, or any other loan that is secured by mals.
real property or a dwelling. • The cancellation is intended as a gift.
Exception. In most cases, the cancellation
Private educational lender. A private educa- of a student loan made by an educational or- • The debt is qualified principal residence in-
debtedness.
tional lender is one of the following. ganization because of services you performed
for that organization or another organization that Forgiveness of Paycheck Protection Pro-
• A financial institution that solicits, makes,
or extends private education loans. provided the funds for the loan must be inclu- gram (PPP) loans. The forgiveness of a PPP
ded in gross income on your tax return. loan creates tax-exempt income, so although
• A federal credit union that solicits, makes you don't need to report the income from the
or extends private education loans. Refinanced loan. If you refinanced a stu-
forgiveness of your PPP loan on Form 1040 or
dent loan with another loan from an eligible ed-
• Any other person engaged in the business 1040-SR, you do need to report certain informa-
ucational organization or a tax-exempt organi-
of soliciting, making, or extending private tion related to your PPP loan.
zation, that loan may also be considered as
education loans. made by a qualified lender. The refinanced loan Rev. Proc. 2021-48, 2021-49 I.R.B. 835, per-
is considered made by a qualified lender if it’s mits taxpayers to treat tax-exempt income re-
The cancellation of your loan won’t
made under a program of the refinancing organ- sulting from the forgiveness of a PPP loan as re-
! qualify for tax-free treatment if it is can-
ization that is designed to encourage students ceived or accrued (1) as, and to the extent that,
CAUTION celed because of services you per-
to serve in occupations with unmet needs or in eligible expenses are paid or incurred; (2) when
formed for the private educational lender that
areas with unmet needs where the services re- you apply for forgiveness of the PPP loan; or (3)
made the loan or other organization that provi-
quired of the students are for or under the direc- when forgiveness of the PPP loan is granted. If
ded the funds.
tion of a governmental unit or a tax-exempt sec- you have tax-exempt income resulting from the
tion 501(c)(3) organization. forgiveness of a PPP loan, attach a statement to
Loan from an educational organization de-
your return reporting each tax year for which
scribed in section 170(b)(1)(A)(ii). This is
you are applying Rev. Proc. 2021-48, and which
section of Rev. Proc. 2021-48 you are applying–

either section 3.01(1), (2), or (3). Any statement To determine the excluded part, divide the be expected to result in death within 24 months
should include the following information for amount held by the insurance company (gener- from the date of the certification.
each PPP loan. ally, the total lump sum payable at the death of
Exclusion for chronic illness. If the insured is
the insured person) by the number of install-
1. Your name, address, and ITIN or SSN; a chronically ill individual who’s not terminally ill,
ments to be paid. Include anything over this ex-
accelerated death benefits paid on the basis of
2. A statement that you are applying or ap- cluded part in your income as interest.
costs incurred for qualified long-term care serv-
plied section 3.01(1), (2), or (3) of Rev.
Surviving spouse. If your spouse died be- ices are fully excludable. Accelerated death
Proc. 2021-48, and for what tax year;
fore October 23, 1986, and insurance proceeds benefits paid on a per diem or other periodic ba-
3. The amount of tax-exempt income from paid to you because of the death of your spouse sis are excludable up to a limit. For 2023, this
forgiveness of the PPP loan that you are are received in installments, you can exclude up limit is $420. It applies to the total of the accel-
treating as received or accrued and for to $1,000 a year of the interest included in the erated death benefits and any periodic pay-
what tax year; and installments. If you remarry, you can continue to ments received from long-term care insurance
take the exclusion. contracts. For information on the limit and the
4. Whether forgiveness of the PPP loan has
definitions of chronically ill individual, qualified
been granted as of the date you file your Surrender of policy for cash. If you surren-
long-term care services, and long-term care in-
return. der a life insurance policy for cash, you must in-
surance contracts, see Long-Term Care Insur-
clude in income any proceeds that are more
Write “RP 2021-48” at the top of your at- ance Contracts under Sickness and Injury Ben-
than the cost of the life insurance policy. In most
tached statement. efits in Pub. 525.
cases, your cost (or investment in the contract)
is the total of premiums that you paid for the life Exception. The exclusion doesn’t apply to any
Host insurance policy, less any refunded premiums, amount paid to a person (other than the in-
rebates, dividends, or unrepaid loans that sured) who has an insurable interest in the life
If you host a party or event at which sales are weren’t included in your income. of the insured because the insured:
made, any gift or gratuity you receive for giving You should receive a Form 1099-R showing • Is a director, officer, or employee of the
the event is a payment for helping a direct seller the total proceeds and the taxable part. Report person; or
make sales. You must report this item as in- these amounts on lines 5a and 5b of Form 1040
come at its fair market value. or 1040-SR. • Has a financial interest in the person's
business.
Your out-of-pocket party expenses are sub- More information. For more information, see
ject to the 50% limit for meal expenses. For tax Life Insurance Proceeds in Pub. 525. Form 8853. To claim an exclusion for acceler-
years 2018 and after, no deduction is allowed ated death benefits made on a per diem or
for any expenses related to activities generally other periodic basis, you must file Form 8853,
considered entertainment, amusement, or rec- Endowment Contract Archer MSAs and Long-Term Care Insurance
reation. Taxpayers may continue to deduct 50% Proceeds Contracts, with your return. You don’t have to
file Form 8853 to exclude accelerated death
of the cost of business meals if the taxpayer (or
an employee of the taxpayer) is present and the An endowment contract is a policy under which benefits paid on the basis of actual expenses
food or beverages are not considered lavish or you’re paid a specified amount of money on a incurred.
extravagant. The meals may be provided to a certain date unless you die before that date, in
current or potential business customer, client,
consultant, or similar business contact. Food
which case the money is paid to your designa-
ted beneficiary. Endowment proceeds paid in a
Public Safety Officer Killed
and beverages that are provided during enter- lump sum to you at maturity are taxable only if or Injured in the Line of
tainment events will not be considered enter-
tainment if purchased separately from the
the proceeds are more than the cost of the pol-
icy. To determine your cost, subtract any
Duty
event. amount that you previously received under the
A spouse, former spouse, and child of a public
contract and excluded from your income from
For more information about the limit for meal safety officer killed in the line of duty can ex-
the total premiums (or other consideration) paid
expenses, see Pub. 463, Travel, Gift, and Car clude from gross income survivor benefits re-
for the contract. Include in your income the part
Expenses. ceived from a governmental section 401(a) plan
of the lump-sum payment that’s more than your
attributable to the officer’s service. See section
cost.
Life Insurance 101(h).
A public safety officer who’s permanently
Proceeds Accelerated Death and totally disabled or killed in the line of duty
Benefits and a surviving spouse or child can exclude
from income death or disability benefits re-
Life insurance proceeds paid to you because of
the death of the insured person aren’t taxable Certain amounts paid as accelerated death ceived from the federal Bureau of Justice Assis-
unless the policy was turned over to you for a benefits under a life insurance contract or viati- tance or death benefits paid by a state program.
price. This is true even if the proceeds were cal settlement before the insured's death are ex- See section 104(a)(6).
paid under an accident or health insurance pol- cluded from income if the insured is terminally For this purpose, the term “public safety offi-
icy or an endowment contract. However, inter- or chronically ill. cer” includes law enforcement officers, firefight-
est income received as a result of life insurance ers, chaplains, and rescue squad and ambu-
Viatical settlement. This is the sale or assign- lance crew members. For more information, see
proceeds may be taxable.
ment of any part of the death benefit under a life Pub. 559, Survivors, Executors, and Administra-
Proceeds not received in installments. If insurance contract to a viatical settlement pro- tors.
death benefits are paid to you in a lump sum or vider. A viatical settlement provider is a person
other than at regular intervals, include in your in- who regularly engages in the business of buy-
come only the benefits that are more than the ing or taking assignment of life insurance con- Partnership Income
amount payable to you at the time of the insured tracts on the lives of insured individuals who are
person's death. If the benefit payable at death terminally or chronically ill and who meets the A partnership generally isn’t a taxable entity.
isn’t specified, you include in your income the requirements of section 101(g)(2)(B) of the In- The income, gains, losses, deductions, and
benefit payments that are more than the present ternal Revenue Code. credits of a partnership are passed through to
value of the payments at the time of death. the partners based on each partner's distribu-
Exclusion for terminal illness. Accelerated tive share of these items.
Proceeds received in installments. If you death benefits are fully excludable if the insured
receive life insurance proceeds in installments, is a terminally ill individual. This is a person who Schedule K-1 (Form 1065). Although a part-
you can exclude part of each installment from has been certified by a physician as having an nership generally pays no tax, it must file an in-
your income. illness or physical condition that can reasonably formation return on Form 1065, U.S. Return of

Partnership Income, and send Schedule K-1 crease to an amount carried over to the current line 1, and the total of all other recoveries as
(Form 1065) to each partner. In addition, the year that resulted from the deduction or credit is other income on Schedule 1 (Form 1040),
partnership will send each partner a copy of the considered to have reduced your tax in the ear- line 8z.
Partner's Instructions for Schedule K-1 (Form lier year. For more information, see Pub. 525.
Standard deduction limit. You are generally
1065) to help each partner report his or her
Federal income tax refund. Refunds of fed- allowed to claim the standard deduction if you
share of the partnership's income, deductions,
eral income taxes aren’t included in your in- don’t itemize your deductions. Only your item-
credits, and tax preference items.
come because they’re never allowed as a de- ized deductions that are more than your stand-
Keep Schedule K-1 (Form 1065) for duction from income. ard deduction are subject to the recovery rule
your records. Don’t attach it to your (unless you’re required to itemize your deduc-
RECORDS Form 1040 or 1040-SR, unless you’re
State tax refund. If you received a state or lo-
tions). If your total deductions on the earlier
cal income tax refund (or credit or offset) in
specifically required to do so. year return weren’t more than your income for
2023, you must generally include it in income if
that year, include in your income this year the
you deducted the tax in an earlier year. The
For more information on partnerships, see lesser of:
payer should send Form 1099-G to you by Jan-
Pub. 541, Partnerships.
uary 31, 2024. The IRS will also receive a copy • Your recoveries, or
Qualified joint venture. If you and your of the Form 1099-G. If you file Form 1040 or • The amount by which your itemized deduc-
spouse each materially participate as the only 1040-SR, use the State and Local Income Tax tions exceeded the standard deduction.
members of a jointly owned and operated busi- Refund Worksheet in the 2023 instructions for
ness, and you file a joint return for the tax year, Schedule 1 (Form 1040) to figure the amount (if Example. For 2022, you filed a joint return.
you can make a joint election to be treated as a any) to include in your income. See Pub. 525 for Your taxable income was $60,000 and you
qualified joint venture instead of a partnership. when you must use another worksheet. weren’t entitled to any tax credits. Your standard
To make this election, you must divide all items If you could choose to deduct for a tax year deduction was $25,900, and you had itemized
of income, gain, loss, deduction, and credit at- either: deductions of $27,400. In 2023, you received
tributable to the business between you and your the following recoveries for amounts deducted
spouse in accordance with your respective in- • State and local income taxes, or
on your 2022 return.
terests in the venture. For further information on • State and local general sales taxes, then
how to make the election and which sched- the maximum refund that you may have to in- Medical expenses . . . . . . . . . . . . . . . $200
ule(s) to file, see the instructions for your indi- clude in income is limited to the excess of the State and local income tax refund . . . . . . . 400
vidual tax return. tax you chose to deduct for that year over the Refund of mortgage interest . . . . . . . . . . 325
tax you didn’t choose to deduct for that year.
S Corporation Income For examples, see Pub. 525.
Total recoveries . . . . . . . . . . . . . . . . $925
Mortgage interest refund. If you received a None of the recoveries were more than the de-
In most cases, an S corporation doesn’t pay tax
refund or credit in 2023 of mortgage interest ductions taken for 2022. The difference be-
on its income. Instead, the income, losses, de-
paid in an earlier year, the amount should be tween the state and local income tax you de-
ductions, and credits of the corporation are
shown in Form 1098, box 4, Mortgage Interest ducted and your local general sales tax was
passed through to the shareholders based on
Statement. Don’t subtract the refund amount more than $400.
each shareholder's pro rata share.
from the interest you paid in 2023. You may Your total recoveries are less than the
Schedule K-1 (Form 1120-S). An S corpora- have to include it in your income under the rules amount by which your itemized deductions ex-
tion must file a return on Form 1120-S, U.S. In- explained in the following discussions. ceeded the standard deduction ($27,400 −
come Tax Return for an S Corporation, and $25,900 = $1,500), so you must include your to-
Interest on recovery. Interest on any of the
send Schedule K-1 (Form 1120-S) to each tal recoveries in your income for 2023. Report
amounts you recover must be reported as inter-
shareholder. In addition, the S corporation will the state and local income tax refund of $400
est income in the year received. For example,
send each shareholder a copy of the Share- on Schedule 1 (Form 1040), line 1, and the bal-
report any interest you received on state or local
holder's Instructions for Schedule K-1 (Form ance of your recoveries, $525, on Schedule 1
income tax refunds on Form 1040, 1040-SR, or
1120-S) to help each shareholder report her or (Form 1040), line 8z.
1040-NR, line 2b.
his share of the S corporation's income, losses,
Standard deduction for earlier years. To
credits, and deductions. Recovery and expense in same year. If the
determine if amounts recovered in the current
refund or other recovery and the expense occur
Keep Schedule K-1 (Form 1120-S) for year must be included in your income, you must
in the same year, the recovery reduces the de-
your records. Don’t attach it to your know the standard deduction for your filing sta-
duction or credit and isn’t reported as income.
RECORDS Form 1040 or 1040-SR, unless you’re tus for the year the deduction was claimed.
specifically required to do so. Recovery for 2 or more years. If you receive Look in the instructions for your tax return from
a refund or other recovery that’s for amounts prior years to locate the standard deduction for
For more information on S corporations and you paid in 2 or more separate years, you must the filing status for that prior year. If you filed
their shareholders, see the Instructions for Form allocate, on a pro rata basis, the recovered Form 1040-NR, you couldn’t claim the standard
1120-S. amount between the years in which you paid it. deduction except for certain nonresident aliens
This allocation is necessary to determine the from India (see Pub. 519).
Recoveries amount of recovery from any earlier years and
to determine the amount, if any, of your allowa- Example. You filed a joint return on Form
ble deduction for this item for the current year. 1040 for 2022 with taxable income of $45,000.
A recovery is a return of an amount you deduc-
For information on how to figure the allocation, Your itemized deductions were $26,150. The
ted or took a credit for in an earlier year. The
see Recoveries in Pub. 525. standard deduction that you could have claimed
most common recoveries are refunds, reim-
was $25,900. In 2023, you recovered $2,100 of
bursements, and rebates of deductions item-
your 2022 itemized deductions. None of the re-
ized on Schedule A (Form 1040). You may also Itemized Deduction coveries were more than the actual deductions
have recoveries of nonitemized deductions
(such as payments on previously deducted bad Recoveries for 2022. Include $250 of the recoveries in your
2023 income. This is the smaller of your recov-
debts) and recoveries of items for which you
If you recover any amount that you deducted in eries ($2,100) or the amount by which your
previously claimed a tax credit.
an earlier year on Schedule A (Form 1040), you itemized deductions were more than the stand-
Tax benefit rule. You must include a recovery must generally include the full amount of the re- ard deduction ($26,150 − $25,900 = $250).
in your income in the year you receive it up to covery in your income in the year you receive it. Recovery limited to deduction. You don’t in-
the amount by which the deduction or credit you
Where to report. Enter your state or local include in your income any amount of your recov-
took for the recovered amount reduced your tax
come tax refund on Schedule 1 (Form 1040), ery that’s more than the amount you deducted
in the earlier year. For this purpose, any in-

in the earlier year. The amount you include in repayment qualifies as an expense or loss in- amount of the credit to any other credits on this
your income is limited to the smaller of: curred in your trade or business or in a for-profit line, and see the instructions there.
transaction. An example of this computation can be
• The amount deducted on Schedule A
found in Pub. 525.
(Form 1040), or Type of deduction. The type of deduction
• The amount recovered. you’re allowed in the year of repayment de- Repaid wages subject to social security
pends on the type of income you included in the and Medicare taxes. If you had to repay an
Example. During 2022, you paid $1,700 for earlier year. You generally deduct the repay- amount that you included in your wages or com-
medical expenses. Of this amount, you deduc- ment on the same form or schedule on which pensation in an earlier year on which social se-
ted $200 on your 2022 Schedule A (Form you previously reported it as income. For exam- curity, Medicare, or tier 1 RRTA taxes were paid,
1040). In 2023, you received a $500 reimburse- ple, if you reported it as self-employment in- ask your employer to refund the excess amount
ment from your medical insurance for your 2022 come, deduct it as a business expense on to you. If the employer refuses to refund the
expenses. The only amount of the $500 reim- Schedule C (Form 1040) or Schedule F (Form taxes, ask for a statement indicating the amount
bursement that must be included in your income 1040). If you reported it as a capital gain, de- of the overcollection to support your claim. File
for 2023 is $200—the amount actually deduc- duct it as a capital loss as explained in the In- a claim for refund using Form 843, Claim for Re-
ted. structions for Schedule D (Form 1040). If you fund and Request for Abatement.
reported it as wages, unemployment compen-
Other recoveries. See Recoveries in Pub. Repaid wages subject to Additional Medi-
sation, or other nonbusiness income, you may
525 if: care Tax. Employers can’t make an adjust-
be able to deduct it as an other itemized deduc-
ment or file a claim for refund for Additional
• You have recoveries of items other than tion if the amount repaid is over $3,000.
Medicare Tax withholding when there is a re-
itemized deductions, or Beginning in 2018, you can no longer payment of wages received by an employee in a
• You received a recovery for an item for ! claim any miscellaneous itemized de- prior year because the employee determines li-
which you claimed a tax credit (other than CAUTION ductions, so if the amount repaid was ability for Additional Medicare Tax on the em-
investment credit or foreign tax credit) in a $3,000 or less, you are not able to deduct it ployee's income tax return for the prior year. If
prior year. from your income in the year you repaid it. you had to repay an amount that you included in
your wages or compensation in an earlier year,
Rents From Personal Repaid social security benefits. If you repaid
social security benefits or equivalent railroad re-
and on which Additional Medicare Tax was
paid, you may be able to recover the Additional
Property tirement benefits, see Repayment of benefits. in
chapter 7.
Medicare Tax paid on the amount. To recover
Additional Medicare Tax on the repaid wages or
If you rent out personal property, such as equip- compensation, you must file Form 1040-X for
Repayment over $3,000. If the amount you
ment or vehicles, how you report your income the prior year in which the wages or compensa-
repaid was more than $3,000, you can deduct
and expenses is in most cases determined by: tion was originally received. See the Instruc-
the repayment as an other itemized deduction
tions for Form 1040-X.
• Whether or not the rental activity is a busi- on Schedule A (Form 1040), line 16, if you in-
ness, and cluded the income under a claim of right. This
• Whether or not the rental activity is con-
means that at the time you included the income, Royalties
it appeared that you had an unrestricted right to
ducted for profit. Royalties from copyrights, patents, and oil, gas,
it. However, you can choose to take a credit for
In most cases, if your primary purpose is in- the year of repayment. Figure your tax under and mineral properties are taxable as ordinary
come or profit and you’re involved in the rental both methods and compare the results. Use the income.
activity with continuity and regularity, your rental method (deduction or credit) that results in less
activity is a business. tax. In most cases, you report royalties in Part I
of Schedule E (Form 1040). However, if you
Reporting business income and expenses. When determining whether the amount hold an operating oil, gas, or mineral interest or
If you’re in the business of renting personal ! you repaid was more or less than are in business as a self-employed writer, inven-
property, report your income and expenses on CAUTION $3,000, consider the total amount be-
tor, artist, etc., report your income and expen-
Schedule C (Form 1040). The form instructions ing repaid on the return. Each instance of re- ses on Schedule C (Form 1040).
have information on how to complete them. payment isn’t considered separately.
Copyrights and patents. Royalties from copy-
Reporting nonbusiness income. If you rights on literary, musical, or artistic works, and
Method 1. Figure your tax for 2023 claiming
aren’t in the business of renting personal prop- similar property, or from patents on inventions,
a deduction for the repaid amount. If you deduct
erty, report your rental income on Schedule 1 are amounts paid to you for the right to use your
it as an other itemized deduction, enter it on
(Form 1040), line 8l. work over a specified period of time. Royalties
Schedule A (Form 1040), line 16.
Reporting nonbusiness expenses. If you are generally based on the number of units
rent personal property for profit, include your Method 2. Figure your tax for 2023 claiming sold, such as the number of books, tickets to a
rental expenses in the total amount you enter on a credit for the repaid amount. Follow these performance, or machines sold.
Schedule 1 (Form 1040), line 24b, and see the steps.
Oil, gas, and minerals. Royalty income from
instructions there. 1. Figure your tax for 2023 without deducting oil, gas, and mineral properties is the amount
If you don’t rent personal property for profit, the repaid amount. you receive when natural resources are extrac-
your deductions are limited and you can’t report ted from your property. The royalties are based
2. Refigure your tax from the earlier year
a loss to offset other income. See Activity not on units, such as barrels, tons, etc., and are
without including in income the amount
for profit under Other Income, later. paid to you by a person or company that leases
you repaid in 2023.
the property from you.
Repayments 3. Subtract the tax in (2) from the tax shown
on your return for the earlier year. This is Depletion. If you’re the owner of an eco-
If you had to repay an amount that you included the credit. nomic interest in mineral deposits or oil and gas
in your income in an earlier year, you may be 4. Subtract the answer in (3) from the tax for wells, you can recover your investment through
able to deduct the amount repaid from your in- 2023 figured without the deduction (step the depletion allowance.
come for the year in which you repaid it. Or, if 1).
the amount you repaid is more than $3,000, you Coal and iron ore. Under certain circum-
may be able to take a credit against your tax for If method 1 results in less tax, deduct the stances, you can treat amounts you receive
the year in which you repaid it. Generally, you amount repaid. If method 2 results in less tax, from the disposal of coal and iron ore as pay-
can claim a deduction or credit only if the claim the credit figured in (3) above on Sched- ments from the sale of a capital asset, rather
ule 3 (Form 1040), line 13b, by adding the than as royalty income. For information about

gain or loss from the sale of coal and iron ore, • Trade readjustment allowances under the credit against your tax for the later year instead
see chapter 2 of Pub. 544. Trade Act of 1974. of deducting the amount repaid. For more infor-
mation on this, see Repayments, earlier.
Sale of property interest. If you sell your • Unemployment assistance under the Dis-
complete interest in oil, gas, or mineral rights, aster Relief and Emergency Assistance Private unemployment fund. Unemployment
the amount you receive is considered payment Act. benefit payments from a private (nonunion) fund
for the sale of property used in a trade or busi- • Unemployment assistance under the Air- to which you voluntarily contribute are taxable
ness under section 1231, not royalty income. line Deregulation Act of 1978 Program. only if the amounts you receive are more than
Under certain circumstances, the sale is subject your total payments into the fund. Report the
to capital gain or loss treatment as explained in taxable amount on Schedule 1 (Form 1040),
the Instructions for Schedule D (Form 1040). Governmental program. If you contribute line 8z.
For more information on selling section 1231 to a governmental unemployment compensa- Payments by a union. Benefits paid to you as
property, see chapter 3 of Pub. 544. tion program and your contributions aren’t de- an unemployed member of a union from regular
If you retain a royalty, an overriding royalty, ductible, amounts you receive under the pro- union dues are included in your income on
or a net profit interest in a mineral property for gram aren’t included as unemployment Schedule 1 (Form 1040), line 8z. However, if
the life of the property, you have made a lease compensation until you recover your contribu- you contribute to a special union fund and your
or a sublease, and any cash you receive for the tions. If you deducted all of your contributions to payments to the fund aren’t deductible, the un-
assignment of other interests in the property is the program, the entire amount you receive unemployment benefits you receive from the fund
ordinary income subject to a depletion allow- der the program is included in your income. are includible in your income only to the extent
ance. they’re more than your contributions.
Repayment of unemployment compensa-
Part of future production sold. If you own tion. If you repaid in 2023 unemployment com- Guaranteed annual wage. Payments you re-
mineral property but sell part of the future pro- pensation you received in 2023, subtract the ceive from your employer during periods of un-
duction, in most cases you treat the money you amount you repaid from the total amount you reemployment, under a union agreement that
receive from the buyer at the time of the sale as ceived and enter the difference on Schedule 1 guarantees you full pay during the year, are tax-
a loan from the buyer. Don’t include it in your in- (Form 1040), line 7. On the dotted line next to able as wages. Include them on line 1a of Form
come or take depletion based on it. your entry, enter “Repaid” and the amount you 1040 or 1040-SR.
When production begins, you include all the repaid. If you repaid unemployment compensa-
proceeds in your income, deduct all the produc- State employees. Payments similar to a
tion in 2023 that you included in income in an
tion expenses, and deduct depletion from that state's unemployment compensation may be
earlier year, you can deduct the amount repaid
amount to arrive at your taxable income from made by the state to its employees who aren’t
on Schedule A (Form 1040), line 16, if you item-
the property. covered by the state's unemployment compen-
ize deductions and the amount is more than
sation law. Although the payments are fully tax-
$3,000. See Repayments, earlier.
Unemployment
able, don’t report them as unemployment com-
Tax withholding. You can choose to have pensation. Report these payments on Schedule
Benefits federal income tax withheld from your unem-
ployment compensation. To make this choice,
1 (Form 1040), line 8z.
The tax treatment of unemployment benefits complete Form W-4V, Voluntary Withholding
Request, and give it to the paying office. Tax will
Welfare and Other
you receive depends on the type of program
paying the benefits. be withheld at 10% of your payment. Public Assistance
Unemployment compensation. You must in- If you don’t choose to have tax withheld Benefits
clude in income all unemployment compensa- ! from your unemployment compensa-
CAUTION tion, you may be liable for estimated Don’t include in your income governmental ben-
tion you receive. You should receive a Form
1099-G showing in box 1 the total unemploy- tax. If you don’t pay enough tax, either through efit payments from a public welfare fund based
ment compensation paid to you. In most cases, withholding or estimated tax, or a combination upon need, such as payments to blind individu-
you enter unemployment compensation on of both, you may have to pay a penalty. For als under a state public assistance law. Pay-
Schedule 1 (Form 1040), line 7. more information on estimated tax, see chap- ments from a state fund for the victims of crime
ter 4. shouldn’t be included in the victims' incomes if
If you received unemployment com- they’re in the nature of welfare payments. Don’t
! pensation but did not receive Form Supplemental unemployment benefits. deduct medical expenses that are reimbursed
CAUTION 1099-G through the mail, you may Benefits received from an employer-financed by such a fund. You must include in your income
need to access your information through your fund (to which the employees didn’t contribute) any welfare payments that are compensation for
state’s website to get your electronic Form aren’t unemployment compensation. They are services or that are obtained fraudulently.
1099-G. taxable as wages. For more information, see
Supplemental Unemployment Benefits in sec- Reemployment Trade Adjustment Assis-
Types of unemployment compensation. tion 5 of Pub. 15-A, Employer's Supplemental tance (RTAA) payments. RTAA payments re-
Unemployment compensation generally in- Tax Guide. Report these payments on line 1a of ceived from a state must be included in your in-
cludes any amount received under an unem- Form 1040 or 1040-SR. come. The state must send you Form 1099-G to
ployment compensation law of the United advise you of the amount you should include in
States or of a state. It includes the following Repayment of benefits. You may have to income. The amount should be reported on
benefits. repay some of your supplemental unemploy- Schedule 1 (Form 1040), line 8z.
ment benefits to qualify for trade readjustment
• Benefits paid by a state or the District of Persons with disabilities. If you have a disa-
allowances under the Trade Act of 1974. If you
Columbia from the Federal Unemployment bility, you must include in income compensation
repay supplemental unemployment benefits in
Trust Fund. you receive for services you perform unless the
the same year you receive them, reduce the to-
compensation is otherwise excluded. However,
• State unemployment insurance benefits. tal benefits by the amount you repay. If you re-
you don’t include in income the value of goods,
pay the benefits in a later year, you must include
• Railroad unemployment compensation the full amount of the benefits received in your
services, and cash that you receive, not in re-
benefits. turn for your services, but for your training and
income for the year you received them.
rehabilitation because you have a disability. Ex-
• Disability payments from a government Deduct the repayment in the later year as an
cludable amounts include payments for trans-
program paid as a substitute for unemploy- adjustment to gross income on Form 1040 or
portation and attendant care, such as inter-
ment compensation. (Amounts received as 1040-SR. Include the repayment on Schedule 1
preter services for the deaf, reader services for
workers' compensation for injuries or ill- (Form 1040), line 24e, and see the instructions
the blind, and services to help individuals with
ness aren’t unemployment compensation. there. If the amount you repay in a later year is
an intellectual disability do their work.
See chapter 5 for more information.) more than $3,000, you may be able to take a

Disaster relief grants. Don’t include post-dis- disasters. They’re paid to you through state and you don’t expect to make a profit. An example of
aster grants received under the Robert T. Staf- local governments based on the provisions of this type of activity is a hobby or a farm you op-
ford Disaster Relief and Emergency Assistance the Robert T. Stafford Disaster Relief and Emer- erate mostly for recreation and pleasure. Enter
Act in your income if the grant payments are gency Assistance Act or the National Flood In- this income on Schedule 1 (Form 1040), line 8j.
made to help you meet necessary expenses or surance Act. Deductions for expenses related to the activity
serious needs for medical, dental, housing, per- You can’t increase the basis or adjusted ba- are limited. They can’t total more than the in-
sonal property, transportation, childcare, or fu- sis of your property for improvements made with come you report and can be taken only if you
neral expenses. Don’t deduct casualty losses or nontaxable disaster mitigation payments. itemize deductions on Schedule A (Form 1040).
medical expenses that are specifically reim-
Home Affordable Modification Program Alaska Permanent Fund dividend. If you re-
bursed by these disaster relief grants. If you
(HAMP). If you benefit from Pay-for-Perform- ceived a payment from Alaska's mineral income
have deducted a casualty loss for the loss of
ance Success Payments under HAMP, the pay- fund (Alaska Permanent Fund dividend), report
your personal residence and you later receive a
ments aren’t taxable. it as income on Schedule 1 (Form 1040),
disaster relief grant for the loss of the same resi-
line 8g. The state of Alaska sends each recipi-
dence, you may have to include part or all of the Mortgage assistance payments under sec- ent a document that shows the amount of the
grant in your taxable income. See Recoveries, tion 235 of the National Housing Act. Pay- payment with the check. The amount is also re-
earlier. Unemployment assistance payments ments made under section 235 of the National ported to the IRS.
under the Act are taxable unemployment com- Housing Act for mortgage assistance aren’t in-
pensation. See Unemployment compensation cluded in the homeowner's income. Interest Alimony. Include in your income on Schedule
under Unemployment Benefits, earlier. paid for the homeowner under the mortgage as- 1 (Form 1040), line 2a, any taxable alimony pay-
sistance program can’t be deducted. ments you receive. Amounts you receive for
Disaster relief payments. You can exclude
child support aren’t income to you. Alimony and
from income any amount you receive that’s a Medicare. Medicare benefits received under ti- child support payments are discussed in Pub.
qualified disaster relief payment. A qualified dis- tle XVIII of the Social Security Act aren’t includi- 504.
aster relief payment is an amount paid to you: ble in the gross income of the individuals for
whom they’re paid. This includes basic (Part A Don’t include alimony payments you re-
1. To reimburse or pay reasonable and nec-
(Hospital Insurance Benefits for the Aged)) and ! ceive under a divorce or separation
essary personal, family, living, or funeral
supplementary (Part B (Supplementary Medical CAUTION agreement (1) executed after 2018, or
expenses that result from a qualified dis-
Insurance Benefits for the Aged)). (2) executed before 2019 but later modified if
aster;
the modification expressly states the repeal of
2. To reimburse or pay reasonable and nec- Social security benefits (including the deduction for alimony payments applies to
essary expenses incurred for the repair or lump-sum payments attributable to prior the modification.
rehabilitation of your home or repair or re- years), Supplemental Security Income (SSI)
placement of its contents to the extent it’s benefits, and lump-sum death benefits. The Bribes. If you receive a bribe, include it in your
due to a qualified disaster; Social Security Administration (SSA) provides income.
benefits such as old-age benefits, benefits to
3. By a person engaged in the furnishing or disabled workers, and benefits to spouses and Campaign contributions. These contributions
sale of transportation as a common carrier dependents. These benefits may be subject to aren’t income to a candidate unless they’re di-
because of the death or personal physical federal income tax depending on your filing sta- verted to her or his personal use. To be nontax-
injuries incurred as a result of a qualified tus and other income. See chapter 7 in this pub- able, the contributions must be spent for cam-
disaster; or lication and Pub. 915, Social Security and paign purposes or kept in a fund for use in
Equivalent Railroad Retirement Benefits, for future campaigns. However, interest earned on
4. By a federal, state, or local government;
more information. An individual originally denied bank deposits, dividends received on contrib-
agency; or instrumentality in connection
benefits, but later approved, may receive a uted securities, and net gains realized on sales
with a qualified disaster in order to pro-
lump-sum payment for the period when benefits of contributed securities are taxable and must
mote the general welfare.
were denied (which may be prior years). See be reported on Form 1120-POL, U.S. Income
You can exclude this amount only to the extent Pub. 915 for information on how to make a Tax Return for Certain Political Organizations.
any expense it pays for isn’t paid for by insur- lump-sum election, which may reduce your tax Excess campaign funds transferred to an office
ance or otherwise. The exclusion doesn’t apply liability. There are also other types of benefits account must be included in the officeholder's
if you were a participant or conspirator in a ter- paid by the SSA. However, SSI benefits and income on Schedule 1 (Form 1040), line 8z, in
rorist action or a representative of one. lump-sum death benefits (one-time payment to the year transferred.
A qualified disaster is: spouse and children of deceased) aren’t sub- Carpools. Don’t include in your income
ject to federal income tax. For more information
• A disaster which results from a terrorist or amounts you receive from the passengers for
on these benefits, go to SSA.gov. driving a car in a carpool to and from work.
military action;
Nutrition Program for the Elderly. Food ben- These amounts are considered reimbursement
• A federally declared disaster; or for your expenses. However, this rule doesn’t
efits you receive under the Nutrition Program for
• A disaster which results from an accident the Elderly aren’t taxable. If you prepare and apply if you have developed carpool arrange-
involving a common carrier, or from any serve free meals for the program, include in ments into a profit-making business of trans-
other event, which is determined to be your income as wages the cash pay you reporting workers for hire.
catastrophic by the Secretary of the Treas- ceive, even if you’re also eligible for food bene-
ury or his or her delegate. Cash rebates. A cash rebate you receive from
fits. a dealer or manufacturer of an item you buy
For amounts paid under item (4) above, a Payments to reduce cost of winter energy. isn’t income, but you must reduce your basis by
disaster is qualified if it’s determined by an ap- Payments made by a state to qualified people to the amount of the rebate.
plicable federal, state, or local authority to war- reduce their cost of winter energy use aren’t
rant assistance from the federal, state, or local taxable. Example. You buy a new car for $24,000
government, agency, or instrumentality. cash and receive a $2,000 rebate check from
Disaster mitigation payments. You can ex-
clude from income any amount you receive
Other Income the manufacturer. The $2,000 isn’t income to
you. Your basis in the car is $22,000. This is the
that’s a qualified disaster mitigation payment. basis on which you figure gain or loss if you sell
The following brief discussions are arranged in the car and depreciation if you use it for busi-
Qualified disaster mitigation payments are most alphabetical order. Other income items briefly
commonly paid to you in the period immediately ness.
discussed below are referenced to publications
following damage to property as a result of a which provide more topical information. Casualty insurance and other reimburse-
natural disaster. However, disaster mitigation ments. You generally shouldn’t report these re-
payments are used to mitigate (reduce the se- Activity not for profit. You must include on imbursements on your return unless you’re
verity of) potential damage from future natural your return income from an activity from which

figuring gain or loss from the casualty or theft. Down payment assistance. If you purchase a the estate or trust income and any credits you’re
See Pub. 547 for more information. home and receive assistance from a nonprofit allowed on your individual income tax return.
corporation to make the down payment, that as-
Child support payments. You shouldn’t re- Losses. Losses of estates and trusts gener-
sistance isn’t included in your income. If the cor-
port these payments on your return. See Pub. ally aren’t deductible by the beneficiaries.
poration qualifies as a tax-exempt charitable or-
504 for more information.
ganization, the assistance is treated as a gift Grantor trust. Income earned by a grantor
Court awards and damages. To determine if and is included in your basis of the house. If the trust is taxable to the grantor, not the benefi-
settlement amounts you receive by compromise corporation doesn’t qualify, the assistance is ciary, if the grantor keeps certain control over
or judgment must be included in your income, treated as a rebate or reduction of the purchase the trust. (The grantor is the one who transfer-
you must consider the item that the settlement price and isn’t included in your basis. red property to the trust.) This rule applies if the
replaces. The character of the income as ordi- property (or income from the property) put into
Employment agency fees. If you get a job
nary income or capital gain depends on the na- the trust will or may revert (be returned) to the
through an employment agency, and the fee is
ture of the underlying claim. Include the follow- grantor or the grantor's spouse.
paid by your employer, the fee isn’t includible in
ing as ordinary income. Generally, a trust is a grantor trust if the
your income if you aren’t liable for it. However, if
1. Interest on any award. you pay it and your employer reimburses you for grantor has a reversionary interest valued (at
it, it’s includible in your income. the date of transfer) at more than 5% of the
2. Compensation for lost wages or lost profits value of the transferred property.
in most cases. Energy conservation subsidies. You can ex-
clude from gross income any subsidy provided, Expenses paid by another. If your personal
3. Punitive damages, in most cases. It expenses are paid for by another person, such
either directly or indirectly, by public utilities for
doesn’t matter if they relate to a physical as a corporation, the payment may be taxable
the purchase or installation of an energy con-
injury or physical sickness. to you depending upon your relationship with
servation measure for a dwelling unit.
4. Amounts received in settlement of pension that person and the nature of the payment. But
rights (if you didn’t contribute to the plan). Energy conservation measure. This in- if the payment makes up for a loss caused by
cludes installations or modifications that are pri- that person, and only restores you to the posi-
5. Damages for: marily designed to reduce consumption of election you were in before the loss, the payment
a. Patent or copyright infringement, tricity or natural gas, or improve the isn’t includible in your income.
management of energy demand.
b. Breach of contract, or Fees for services. Include all fees for your
Dwelling unit. This includes a house, services in your income. Examples of these
c. Interference with business operations. apartment, condominium, mobile home, boat, fees are amounts you receive for services you
6. Back pay and damages for emotional dis- or similar property. If a building or structure con- perform as:
tress received to satisfy a claim under title tains both dwelling and other units, any subsidy
• A corporate director;
VII of the Civil Rights Act of 1964. must be properly allocated.
• An executor, administrator, or personal
7. Attorney fees and costs (including contin- Estate and trust income. An estate or trust, representative of an estate;
gent fees) where the underlying recovery unlike a partnership, may have to pay federal in-
is included in gross income. come tax. If you’re a beneficiary of an estate or • A manager of a trade or business you op-
trust, you may be taxed on your share of its in- erated before declaring chapter 11 bank-
8. Attorney fees and costs relating to whistle- come distributed or required to be distributed to ruptcy;
blower awards where the underlying re-
covery is included in gross income.
you. However, there is never a double tax. Es- • A notary public; or
tates and trusts file their returns on Form 1041,
U.S. Income Tax Return for Estates and Trusts, • An election precinct official.
Don’t include in your income compensatory
damages for personal physical injury or physical and your share of the income is reported to you Nonemployee compensation. If you aren’t
sickness (whether received in a lump sum or in- on Schedule K-1 (Form 1041). an employee and the fees for your services from
stallments). a single payer in the course of the payer's trade
Current income required to be distrib-
or business total $600 or more for the year, the
Emotional distress. Emotional distress it- uted. If you’re the beneficiary of an estate or
payer should send you a Form 1099-NEC. You
self isn’t a physical injury or physical sickness, trust that must distribute all of its current in-
may need to report your fees as self-employ-
but damages you receive for emotional distress come, you must report your share of the distrib-
ment income. See Self-Employed Persons in
due to a physical injury or sickness are treated utable net income, whether or not you actually
chapter 1 for a discussion of when you’re con-
as received for the physical injury or sickness. received it.
sidered self-employed.
Don’t include them in your income.
If the emotional distress is due to a personal Current income not required to be dis-
Corporate director. Corporate director fees
injury that isn’t due to a physical injury or sick- tributed. If you’re the beneficiary of an estate
are self-employment income. Report these pay-
ness (for example, employment discrimination or trust and the fiduciary has the choice of
ments on Schedule C (Form 1040).
or injury to reputation), you must include the whether to distribute all or part of the current in-
damages in your income, except for any dam- come, you must report: Personal representatives. All personal
ages that aren’t more than amounts paid for • All income that’s required to be distributed representatives must include in their gross in-
medical care due to that emotional distress. to you, whether or not it’s actually distrib- come fees paid to them from an estate. If you
Emotional distress includes physical symptoms uted, plus aren’t in the trade or business of being an exec-
that result from emotional distress, such as utor (for instance, you’re the executor of a
headaches, insomnia, and stomach disorders.
• All other amounts actually paid or credited friend's or relative's estate), report these fees on
to you,
Schedule 1 (Form 1040), line 8z. If you’re in the
Credit card insurance. In most cases, if you up to the amount of your share of distributable trade or business of being an executor, report
receive benefits under a credit card disability or net income. these fees as self-employment income on
unemployment insurance plan, the benefits are Schedule C (Form 1040). The fee isn’t includi-
taxable to you. These plans make the minimum How to report. Treat each item of income ble in income if it’s waived.
monthly payment on your credit card account if the same way that the estate or trust would treat
you can’t make the payment due to injury, ill- it. For example, if a trust's dividend income is Manager of trade or business for bank-
ness, disability, or unemployment. Report on distributed to you, you report the distribution as ruptcy estate. Include in your income all pay-
Schedule 1 (Form 1040), line 8z, the amount of dividend income on your return. The same rule ments received from your bankruptcy estate for
benefits you received during the year that’s applies to distributions of tax-exempt interest managing or operating a trade or business that
more than the amount of the premiums you paid and capital gains. you operated before you filed for bankruptcy.
during the year. The fiduciary of the estate or trust must tell Report this income on Schedule 1 (Form 1040),
you the type of items making up your share of line 8z.

Notary public. Report payments for these at its fair market value in the first year it’s your If you collect stamps, coins, or other
services on Schedule C (Form 1040). These undisputed possession. ! items as a hobby for recreation and
payments aren’t subject to self-employment tax. CAUTION pleasure, and you sell any of the items,
Free tour. If you received a free tour from a
See the separate Instructions for Schedule SE your gain is taxable as a capital gain. (See Pub.
travel agency for organizing a group of tourists,
(Form 1040) for details. 550.) However, if you sell items from your col-
you must include its value in your income. Re-
lection at a loss, you can’t deduct the loss.
Election precinct official. You should report the fair market value of the tour on Sched-
ceive a Form W-2 showing payments for serv- ule 1 (Form 1040), line 8z, if you aren’t in the Illegal activities. Income from illegal activities,
ices performed as an election official or election trade or business of organizing tours. You can’t such as money from dealing illegal drugs, must
worker. Report these payments on line 1a of deduct your expenses in serving as the volun- be included in your income on Schedule 1
Form 1040 or 1040-SR. tary leader of the group at the group's request. If (Form 1040), line 8z, or on Schedule C (Form
you organize tours as a trade or business, re- 1040) if from your self-employment activity.
Foster care providers. Generally, payment port the tour's value on Schedule C (Form
you receive from a state, a political subdivision, 1040). Indian fishing rights. If you’re a member of a
or a qualified foster care placement agency for qualified Indian tribe that has fishing rights se-
caring for a qualified foster individual in your Gambling winnings. You must include your
cured by treaty, Executive order, or an Act of
home is excluded from your income. However, gambling winnings in income on Schedule 1
Congress as of March 17, 1988, don’t include in
you must include in your income payment to the (Form 1040), line 8b. Winnings from fantasy
your income amounts you receive from activities
extent it’s received for the care of more than five sports leagues are gambling winnings. If you
related to those fishing rights. The income isn’t
qualified foster individuals age 19 years or itemize your deductions on Schedule A (Form
subject to income tax, self-employment tax, or
older. 1040), you can deduct gambling losses you had
employment taxes.
during the year, but only up to the amount of
A qualified foster individual is a person who:
your winnings. If you’re in the trade or business Interest on frozen deposits. In general, you
1. Is living in a foster family home; and of gambling, use Schedule C (Form 1040). exclude from your income the amount of inter-
est earned on a frozen deposit. See Interest in-
2. Was placed there by:
Lotteries and raffles. Winnings from lotter- come on frozen deposits in chapter 6.
a. An agency of a state or one of its polit- ies and raffles are gambling winnings. In addi-
Interest on qualified savings bonds. You
ical subdivisions, or tion to cash winnings, you must include in your
may be able to exclude from income the interest
income the fair market value of bonds, cars,
b. A qualified foster care placement from qualified U.S. savings bonds you redeem if
houses, and other noncash prizes.
agency. you pay qualified higher education expenses in
If you win a state lottery prize payable the same year. For more information on this ex-
Difficulty-of-care payments. These are clusion, see Education Savings Bond Program
TIP in installments, see Pub. 525 for more
payments that are designated by the payer as information. under U.S. Savings Bonds in chapter 6.
compensation for providing the additional care
that’s required for physically, mentally, or emo- Job interview expenses. If a prospective em-
tionally handicapped qualified foster individuals. Form W-2G. You may have received a Form ployer asks you to appear for an interview and
A state must determine that this compensation W-2G, Certain Gambling Winnings, showing the either pays you an allowance or reimburses you
is needed, and the care for which the payments amount of your gambling winnings and any tax for your transportation and other travel expen-
are made must be provided in the foster care taken out of them. Include the amount from ses, the amount you receive is generally not
provider's home in which the qualified foster in- box 1 on Schedule 1 (Form 1040), line 8b. In- taxable. You include in income only the amount
dividual was placed. clude the amount shown in box 4 on Form 1040 you receive that’s more than your actual expen-
Certain Medicaid waiver payments are trea- or 1040-SR, line 25c, as federal income tax ses.
ted as difficulty-of-care payments when re- withheld.
Jury duty. Jury duty pay you receive must be
ceived by an individual care provider for caring included in your income on Schedule 1 (Form
for an eligible individual living in the provider's Reporting winnings and recordkeeping.
1040), line 8h. If you gave any of your jury duty
home. See Notice 2014-7, available at For more information on reporting gambling
pay to your employer because your employer
IRS.gov/irb/2014-04_IRB#NOT-2014-7, and re- winnings and recordkeeping, see Gambling
continued to pay you while you served jury duty,
lated questions and answers, available at Losses up to the Amount of Gambling Winnings
include the amount you gave your employer as
IRS.gov/Individuals/Certain-Medicaid-Waiver- in chapter 12.
an income adjustment on Schedule 1 (Form
Payments-May-Be-Excludable-From-Income, Gifts and inheritances. In most cases, prop- 1040), line 24a, and see the instructions there.
for more information. erty you receive as a gift, bequest, or inheri-
You must include in your income diffi- Kickbacks. You must include kickbacks, side
tance isn’t included in your income. However, if
culty-of-care payments to the extent they’re re- commissions, push money, or similar payments
property you receive this way later produces in-
ceived for more than: you receive in your income on Schedule 1
come such as interest, dividends, or rents, that
(Form 1040), line 8z, or on Schedule C (Form
• 10 qualified foster individuals under age income is taxable to you. If property is given to a
1040) if from your self-employment activity.
19, or trust and the income from it is paid, credited, or
distributed to you, that income is also taxable to
• 5 qualified foster individuals age 19 or you. If the gift, bequest, or inheritance is the in-
Example. You sell cars and help arrange
older. car insurance for buyers. Insurance brokers pay
come from the property, that income is taxable
back part of their commissions to you for refer-
to you.
Maintaining space in home. If you’re paid ring customers to them. You must include the
to maintain space in your home for emergency kickbacks in your income.
Inherited pension or individual retire-
foster care, you must include the payment in
ment arrangement (IRA). If you inherited a Medical savings accounts (Archer MSAs
your income.
pension or an IRA, you may have to include part and Medicare Advantage MSAs). In most ca-
Reporting taxable payments. If you re- of the inherited amount in your income. See ses, you don’t include in income amounts you
ceive payments that you must include in your in- Survivors and Beneficiaries in Pub. 575 if you withdraw from your Archer MSA or Medicare
come and you’re in business as a foster care inherited a pension. See What if You Inherit an Advantage MSA if you use the money to pay for
provider, report the payments on Schedule C IRA? in Pubs. 590-A and 590-B if you inherited qualified medical expenses. Generally, qualified
(Form 1040). See Pub. 587, Business Use of an IRA. medical expenses are those you can deduct on
Your Home, to help you determine the amount Schedule A (Form 1040). For more information
Hobby losses. Losses from a hobby aren’t de-
you can deduct for the use of your home. about qualified medical expenses, see Pub.
ductible from other income. A hobby is an activ-
502. For more information about Archer MSAs
Found property. If you find and keep property ity from which you don’t expect to make a profit.
or Medicare Advantage MSAs, see Pub. 969,
that doesn’t belong to you that has been lost or See Activity not for profit, earlier.
abandoned (treasure trove), it’s taxable to you

Health Savings Accounts and Other Tax-Fa- In most cases, the beneficiary doesn’t in- Prizes. Scholarship prizes won in a contest
vored Health Plans. clude in income any earnings distributed from a aren’t scholarships or fellowships if you don’t
QTP if the total distribution is less than or equal have to use the prizes for educational purposes.
Prizes and awards. If you win a prize in a
to adjusted qualified higher education expen- You must include these amounts in your income
lucky number drawing, television or radio quiz
ses. See Pub. 970 for more information. on Schedule 1 (Form 1040), line 8i, whether or
program, beauty contest, or other event, you
not you use the amounts for educational purpo-
must include it in your income. For example, if Railroad retirement annuities. The following
ses.
you win a $50 prize in a photography contest, types of payments are treated as pension or an-
you must report this income on Schedule 1 nuity income and are taxable under the rules Sharing/gig economy. A sharing economy is
(Form 1040), line 8i. If you refuse to accept a explained in Pub. 575, Pension and Annuity In- one in which assets are shared between individ-
prize, don’t include its value in your income. come. uals for a fee, usually through the internet. For
Prizes and awards in goods or services example, you rent out your car when you don’t
• Tier 1 railroad retirement benefits that are
must be included in your income at their fair need it, or you share your wi-fi account for a fee.
more than the social security equivalent
market value. benefit. A gig economy is one in which a short-term
contract or freelance work is the norm, as op-
Employee awards or bonuses. Cash • Tier 2 benefits. posed to a permanent job. For example, you
awards or bonuses given to you by your em-
• Vested dual benefits. drive for a ride-sharing service, or work as a fit-
ployer for good work or suggestions must gen-
ness trainer, babysitter, or tutor.
erally be included in your income as wages. Rewards. If you receive a reward for providing Generally, if you have income from sharing
However, certain noncash employee achieve- information, include it in your income. economy transactions, or you did gig work, you
ment awards can be excluded from income.
Sale of home. You may be able to exclude must include all income received whether you
See Bonuses and awards in chapter 5.
from income all or part of any gain from the sale received a Form 1099-K, Payment Card and
Pulitzer, Nobel, and similar prizes. If you or exchange of your main home. See Pub. 523. Third-Party Network Transactions, or not. See
were awarded a prize in recognition of accom- the Instructions for Schedule C (Form 1040)
plishments in religious, charitable, scientific, ar- Sale of personal items. If you sold an item and the Instructions for Schedule SE (Form
tistic, educational, literary, or civic fields, you you owned for personal use, such as a car, re- 1040).
must generally include the value of the prize in frigerator, furniture, stereo, jewelry, or silver-
your income. However, you don’t include this ware, your gain is taxable as a capital gain. Re- State tax payments. Do not include pay-
prize in your income if you meet all of the follow- port it as explained in the Instructions for ments on your tax return made by states under
ing requirements. Schedule D (Form 1040). You can’t deduct a legislatively provided social benefit programs
loss. for the promotion of the general welfare. To
• You were selected without any action on However, if you sold an item you held for in- qualify for the general welfare exclusion, state
your part to enter the contest or proceed- vestment, such as gold or silver bullion, coins, payments must be paid from a governmental
ing. or gems, any gain is taxable as a capital gain fund, be for the promotion of general welfare
• You aren’t required to perform substantial and any loss is deductible as a capital loss. (that is, based on the need of the individual or
future services as a condition to receiving family receiving such payments), and not repre-
the prize or award. Example. You sold a painting on an online sent compensation for services.
auction website for $100. You bought the paint-
• The prize or award is transferred by the Spillover payments under certain 2022
payer directly to a governmental unit or ing for $20 at a garage sale years ago. Report
your gain as a capital gain as explained in the state tax payment programs. In 2022, some
tax-exempt charitable organization as des- states implemented programs to provide state
ignated by you. Instructions for Schedule D (Form 1040).
payments to certain individuals residing in their
See Pub. 525 for more information about the Scholarships and fellowships. A candidate states. Many of these programs were related to
conditions that apply to the transfer. for a degree can exclude amounts received as a the various consequences of the COVID-19
qualified scholarship or fellowship. A qualified pandemic. Some of those 2022 programs provi-
Qualified Opportunity Fund (QOF). Effective scholarship or fellowship is any amount you re- ded for payments to be made in early 2023. For
December 22, 2017, Code section 1400Z-2 ceive that’s for: special tax refunds or payments that were ex-
provides a temporary deferral on inclusion in cluded from federal income in 2022, the same
gross income for capital gains invested in • Tuition and fees to enroll at or attend an
educational institution; or tax treatment applies to the special tax refund or
QOFs, and permanent exclusion of capital payments received in 2023. This means taxpay-
gains from the sale or exchange of an invest- • Fees, books, supplies, and equipment re- ers who didn’t get a payment under the program
ment in the QOF if the investment is held for at quired for courses at the educational insti- during 2022 may exclude from federal income a
least 10 years. See the Instructions for Form tution. state payment provided under the 2022 pro-
8949 on how to report your election to defer eli- gram even if they actually received the payment
Amounts used for room and board don’t qualify
gible gains invested in a QOF. See the instruc- in 2023. See IRS News Release IR-2023-158 at
for the exclusion. See Pub. 970 for more infor-
tions for Form 8997, Initial and Annual State- IRS.gov/Newsroom/IRS-Issues-Guidance-On-
mation on qualified scholarships and fellowship
ment of Qualified Opportunity Fund (QOF) State-Tax-Payments for more information.
grants.
Investments, for reporting information. For addi-
tional information, see Opportunity Zones Fre- Payment for services. In most cases, you Stolen property. If you steal property, you
quently Asked Questions at IRS.gov/ must include in income the part of any scholar- must report its fair market value in your income
Newsroom/Opportunity-Zones-Frequently- ship or fellowship that represents payment for in the year you steal it unless you return it to its
Asked-Questions. past, present, or future teaching, research, or rightful owner in the same year.
other services. This applies even if all candi- Transporting school children. Don’t include
Qualified tuition programs (QTPs). A QTP dates for a degree must perform the services to in your income a school board mileage allow-
(also known as a 529 program) is a program set receive the degree. ance for taking children to and from school if
up to allow you to either prepay or contribute to For information about the rules that apply to you aren’t in the business of taking children to
an account established for paying a student's a tax-free qualified tuition reduction provided to school. You can’t deduct expenses for providing
qualified higher education expenses at an eligi- employees and their families by an educational this transportation.
ble educational institution. A program can be institution, see Pub. 970.
established and maintained by a state, an Union benefits and dues. Amounts deducted
agency or instrumentality of a state, or an eligi- Department of Veterans Affairs (VA) pay- from your pay for union dues, assessments,
ble educational institution. ments. Allowances paid by the VA aren’t inclu- contributions, or other payments to a union
The part of a distribution representing the ded in your income. These allowances aren’t can’t be excluded from your income.
amount paid or contributed to a QTP isn’t inclu- considered scholarship or fellowship grants.
ded in income. This is a return of the investment Strike and lockout benefits. Benefits paid
in the program. to you by a union as strike or lockout benefits,

including both cash and the fair market value of Modified adjusted gross income (AGI) limit date by which the amount must be distributed.
other property, are usually included in your infor traditional IRA contributions. For 2023, if The report is due January 31 of the year in
come as compensation. You can exclude these you are covered by a retirement plan at work, which the minimum distribution is required. It
benefits from your income only when the facts your deduction for contributions to a traditional can be provided with the year-end fair market
clearly show that the union intended them as IRA is reduced (phased out) if your modified value statement that you normally get each
gifts to you. AGI is: year. No report is required for IRAs of owners
who have died.
Utility rebates. If you’re a customer of an elec- • More than $116,000 but less than
tric utility company and you participate in the $136,000 for a married couple filing a joint IRA interest. Although interest earned from
utility's energy conservation program, you may return or a qualifying surviving spouse, your IRA is generally not taxed in the year
receive on your monthly electric bill either: • More than $73,000 but less than $83,000 earned, it isn't tax-exempt interest. Tax on your
traditional IRA is generally deferred until you
• A reduction in the purchase price of elec- for a single individual or head of house-
tricity furnished to you (rate reduction), or hold, or take a distribution. Don't report this interest on
your tax return as tax-exempt interest.
• A nonrefundable credit against the pur- • Less than $10,000 for a married individual
chase price of the electricity. filing a separate return. Net Investment Income Tax (NIIT). For pur-
poses of the NIIT, net investment income
The amount of the rate reduction or nonrefunda- If you either live with your spouse or file a joint doesn't include distributions from a qualified re-
ble credit isn’t included in your income. return, and your spouse is covered by a retire- tirement plan including IRAs (for example,
ment plan at work but you aren’t, your deduction 401(a), 403(a), 403(b), 408, 408A, or 457(b)
is phased out if your modified AGI is more than plans). However, these distributions are taken
$218,000 but less than $228,000. If your modi- into account when determining the modified
fied AGI is $228,000 or more, you can’t take a AGI threshold. Distributions from a nonqualified
deduction for contributions to a traditional IRA. retirement plan are included in net investment
See How Much Can You Deduct, later.
9. Modified AGI limit for Roth IRA contribu-
income. See Form 8960, Net Investment In-
come Tax—Individuals, Estates, and Trusts, and
tions. For 2023, your Roth IRA contribution its instructions for more information.
limit is reduced (phased out) in the following sit-
Form 8606. To designate contributions as non-
Individual uations.
• Your filing status is married filing jointly or
deductible, you must file Form 8606.
The term “50 or older” is used several
Retirement qualifying surviving spouse and your modi-
fied AGI is at least $218,000. You can’t TIP times in this chapter. It refers to an IRA
owner who is age 50 or older by the
make a Roth IRA contribution if your modi-
Arrangements fied AGI is $228,000 or more.
end of the tax year.
• Your filing status is single, head of house-

(IRAs) hold, or married filing separately and you
didn’t live with your spouse at any time in Introduction
2023 and your modified AGI is at least An IRA is a personal savings plan that gives you
$138,000. You can’t make a Roth IRA con- tax advantages for setting aside money for your
What’s New tribution if your modified AGI is $153,000
or more.
retirement.
This chapter discusses the following topics.
IRA contribution limit increased. Beginning • Your filing status is married filing sepa- • The rules for a traditional IRA (any IRA that
in 2023, the IRA contribution limit is increased rately, you lived with your spouse at any isn't a Roth or SIMPLE IRA).
to $6,500 ($7,500 for individuals age 50 or time during the year, and your modified
older) from $6,000 ($7,000 for individuals age AGI is more than zero. You can’t make a • The Roth IRA, which features nondeducti-
Roth IRA contribution if your modified AGI ble contributions and tax-free distributions.
50 or older).
is $10,000 or more. Simplified Employee Pensions (SEPs) and
Increase in required minimum distribution
age. Individuals who reach age 72 after De- See Can You Contribute to a Roth IRA, later. Savings Incentive Match Plans for Employees
cember 31, 2022, may delay receiving their re- (SIMPLE) plans aren't discussed in this chapter.
2024 modified AGI limits. You can find infor- For more information on these plans and em-
quired minimum distributions until April 1 of the
mation about the 2024 contribution and AGI lim- ployees' SEP IRAs and SIMPLE IRAs that are
year following the year in which they turn age
its in Pub. 590-A. part of these plans, see Pub. 560.
73.
For information about contributions, deduc-
Disaster tax relief. The special rules that pro-
vide for tax-favored withdrawals and repay-
ments now apply to disasters that occur on or
Reminders tions, withdrawals, transfers, rollovers, and
other transactions, see Pub. 590-A and Pub.
590-B.
after January 26, 2021. See Disaster-Related
Maximum age for making traditional IRA
Relief in Pub. 590-B for more information.
contributions repealed. For tax years begin-
Distributions to terminally ill individuals. Useful Items
ning after 2019, there is no age limit on making
The exception to the 10% additional tax for You may want to see:
contributions to your traditional IRA. For more
early distributions is expanded to apply to distri- information, see Pub. 590-A.
butions made after December 29, 2022, to an Publication
individual who has been certified by a physician Contributions to both traditional and Roth
IRAs. For information on your combined contri- 560 Retirement Plans for Small Business
as having a terminal illness. See Pub. 590-B for
560
more information. bution limit if you contribute to both traditional 575 Pension and Annuity Income
and Roth IRAs, see Roth IRAs and traditional
575
Certain corrective distributions not subject 590-A Contributions to Individual

IRAs, later.
to 10% early distribution tax. Beginning with
590-A
Retirement Arrangements (IRAs)

distributions made on December 29, 2022, and Statement of required minimum distribu-
after, the 10% additional tax on early distribution. If a minimum distribution from your IRA is 590-B Distributions from Individual
590-B
tions will not apply to the income attributed to a required, the trustee, custodian, or issuer that Retirement Arrangements (IRAs)
corrective IRA distribution, as long as the cor- held the IRA at the end of the preceding year
rective distribution is made on or before the due must either report the amount of the required
date (including extensions) of the income tax re- minimum distribution to you, or offer to figure it
turn. for you. The report or offer must include the
78 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

Form (and Instructions) trade or business (provided your personal serv- This is the rule even in states with community
ices are a material income-producing factor) re- property laws.
5329 Additional Taxes on Qualified Plans duced by the total of:
Brokers' commissions. Brokers' commis-
5329
(Including IRAs) and Other

Tax-Favored Accounts • The deduction for contributions made on sions paid in connection with your traditional
your behalf to retirement plans, and IRA are subject to the contribution limit.
8606 Nondeductible IRAs
8606
• The deductible part of your self-employ- Trustees' fees. Trustees' administrative fees
ment tax. aren't subject to the contribution limit.
8915-F Qualified Disaster Retirement
Compensation includes earnings from
8915-F
Plan Distributions and Repayments Qualified reservist repayments. If you are (or
self-employment even if they aren't subject to were) a member of a reserve component and
For these and other useful items, go to IRS.gov/ self-employment tax because of your religious you were ordered or called to active duty after
Forms. beliefs. September 11, 2001, you may be able to con-
tribute (repay) to an IRA amounts equal to any
Traditional IRAs Nontaxable combat pay. For IRA purpo-
ses, if you were a member of the U.S. Armed
qualified reservist distributions you received.
You can make these repayment contributions
Forces, your compensation includes any non- even if they would cause your total contributions
In this chapter, the original IRA (sometimes taxable combat pay you receive.
called an ordinary or regular IRA) is referred to to the IRA to be more than the general limit on
as a “traditional IRA.” A traditional IRA is any What isn't compensation? Compensation contributions. To be eligible to make these re-
IRA that isn't a Roth IRA or a SIMPLE IRA. Two doesn't include any of the following items. payment contributions, you must have received
advantages of a traditional IRA are: a qualified reservist distribution from an IRA or
• Earnings and profits from property, such as from a section 401(k) or 403(b) plan or similar
• You may be able to deduct some or all of rental income, interest income, and divi- arrangement.
your contributions to it, depending on your dend income.
For more information, see Qualified reservist
circumstances; and • Pension or annuity income. repayments under How Much Can Be Contrib-
• Generally, amounts in your IRA, including • Deferred compensation received (compen- uted? in chapter 1 of Pub. 590-A.
earnings and gains, aren't taxed until they sation payments postponed from a past Contributions on your behalf to a tradi-
are distributed. year).
! tional IRA reduce your limit for contribu-
• Income from a partnership for which you tions to a Roth IRA. (See Roth IRAs,
Who Can Open a
CAUTION
don't provide services that are a material later.)

Traditional IRA? income-producing factor.
General limit. For 2023, the most that can be
• Conservation Reserve Program (CRP) contributed to your traditional IRA is generally
You can open and make contributions to a tradi- payments reported on Schedule SE (Form the smaller of the following amounts.
tional IRA if you (or, if you file a joint return, your 1040), line 1b.
spouse) received taxable compensation during • $6,500 ($7,500 if you are 50 or older).
• Any amounts (other than combat pay) you
the year. exclude from income, such as foreign • Your taxable compensation (defined ear-
earned income and housing costs. lier) for the year.
For tax years beginning after 2019,
TIP there is no age limit on making contri- This is the most that can be contributed regard-
butions to your traditional IRA. For
more information, see Pub. 590-A.
When and How Can a less of whether the contributions are to one or
more traditional IRAs or whether all or part of
Traditional IRA Be the contributions are nondeductible. (See Non-
What is compensation? Generally, compen-
sation is what you earn from working. Compen-
Opened? deductible Contributions, later.) Qualified re-
servist repayments don't affect this limit.
sation includes wages, salaries, tips, professio-
You can open a traditional IRA at any time. Example 1. You are 34 years old and single
nal fees, bonuses, and other amounts you
However, the time for making contributions for and earned $24,000 in 2023. Your IRA contribu-
receive for providing personal services. The IRS
any year is limited. See When Can Contribu- tions for 2023 are limited to $6,500.
treats as compensation any amount properly
tions Be Made, later.
shown in box 1 (Wages, tips, other compensa-
tion) of Form W-2, Wage and Tax Statement, You can open different kinds of IRAs with a Example 2. You are an unmarried college
provided that this amount is reduced by any variety of organizations. You can open an IRA at student working part time and earned $3,500 in
amount properly shown in box 11 (Nonqualified a bank or other financial institution or with a mu- 2023. Your IRA contributions for 2023 are limi-
plans). tual fund or life insurance company. You can ted to $3,500, the amount of your compensa-
also open an IRA through your stockbroker. Any tion.
Scholarship or fellowship payments are gen-
IRA must meet Internal Revenue Code require-
erally compensation for this purpose only if re- Kay Bailey Hutchison Spousal IRA limit. For
ments.
ported in box 1 of your Form W-2. However, for 2023, if you file a joint return and your taxable
tax years beginning after 2019, certain non-tui- Kinds of traditional IRAs. Your traditional IRA compensation is less than that of your spouse,
tion fellowship and stipend payments not repor- can be an individual retirement account or an- the most that can be contributed for the year to
ted to you on Form W-2 are treated as taxable nuity. It can be part of either a SEP or an em- your IRA is the smaller of the following amounts.
compensation for IRA purposes. These ployer or employee association trust account.
amounts include taxable non-tuition fellowship 1. $6,500 ($7,500 if you are 50 or older).
and stipend payments made to aid you in the
pursuit of graduate or postdoctoral study and in- How Much Can Be 2. The total compensation includible in the
gross income of both you and your spouse
cluded in your gross income under the rules dis- Contributed? for the year, reduced by the following two
cussed in chapter 1 of Pub. 970, Tax Benefits amounts.
for Education. There are limits and other rules that affect the
Compensation also includes commissions a. Your spouse's IRA contribution for the
amount that can be contributed to a traditional
and taxable alimony and separate maintenance year to a traditional IRA.
IRA. These limits and other rules are explained
payments. below. b. Any contribution for the year to a Roth
IRA on behalf of your spouse.
Self-employment income. If you are Community property laws. Except as dis-
self-employed (a sole proprietor or a partner), cussed later under Kay Bailey Hutchison This means that the total combined contribu-
compensation is the net earnings from your Spousal IRA limit, each spouse figures their tions that can be made for the year to your IRA
limit separately, using their own compensation. and your spouse's IRA can be as much as
Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 79

$13,000 ($14,000 if only one of you is 50 or for total contributions to one or more traditional For Which Year(s) Are You
older, or $15,000 if both of you are 50 or older). IRAs of up to the lesser of: Covered?
• $6,500 ($7,500 if you are 50 or older in Special rules apply to determine the tax years
When Can Contributions 2023), or for which you are covered by an employer plan.
Be Made? • 100% of your compensation. These rules differ depending on whether the
plan is a defined contribution plan or a defined
This limit is reduced by any contributions made benefit plan.
As soon as you open your traditional IRA, con- to a 501(c)(18) plan on your behalf.
tributions can be made to it through your Tax year. Your tax year is the annual account-
chosen sponsor (trustee or other administrator). Kay Bailey Hutchison Spousal IRA. In the ing period you use to keep records and report
Contributions must be in the form of money case of a married couple with unequal compen- income and expenses on your income tax re-
(cash, check, or money order). Property can't sation who file a joint return, the deduction for turn. For almost all people, the tax year is the
be contributed. contributions to the traditional IRA of the spouse calendar year.
with less compensation is limited to the lesser
Contributions must be made by due date. Defined contribution plan. Generally, you are
of the following amounts.
Contributions can be made to your traditional covered by a defined contribution plan for a tax
IRA for a year at any time during the year or by 1. $6,500 ($7,500 if the spouse with the year if amounts are contributed or allocated to
the due date for filing your return for that year, lower compensation is 50 or older in your account for the plan year that ends with or
not including extensions. 2023). within that tax year.
Designating year for which contribution is 2. The total compensation includible in the A defined contribution plan is a plan that
made. If an amount is contributed to your tradi- gross income of both spouses for the year provides for a separate account for each person
tional IRA between January 1 and April 15, you reduced by the following three amounts. covered by the plan. Types of defined contribu-
should tell the sponsor which year (the current tion plans include profit-sharing plans, stock bo-
a. The IRA deduction for the year of the
year or the previous year) the contribution is for. nus plans, and money purchase pension plans.
spouse with the greater compensa-
If you don't tell the sponsor which year it is for, For additional information, see Pub. 590-A.
tion.
the sponsor can assume, and report to the IRS, Defined benefit plan. If you are eligible to par-
that the contribution is for the current year (the b. Any designated nondeductible contri-
ticipate in your employer's defined benefit plan
year the sponsor received it). bution for the year made on behalf of
for the plan year that ends within your tax year,
the spouse with the greater compen-
Filing before a contribution is made. You you are covered by the plan. This rule applies
sation.
can file your return claiming a traditional IRA even if you:
contribution before the contribution is actually c. Any contributions for the year to a
• Declined to participate in the plan,
made. Generally, the contribution must be made Roth IRA on behalf of the spouse with
by the due date of your return, not including ex- the greater compensation. • Didn't make a required contribution, or
tensions.
This limit is reduced by any contributions to a • Didn't perform the minimum service re-
Contributions not required. You don't have to 501(c)(18) plan on behalf of the spouse with the quired to accrue a benefit for the year.
contribute to your traditional IRA for every tax lesser compensation. A defined benefit plan is any plan that isn't a
year, even if you can. defined contribution plan. In a defined benefit
Note. If you were divorced or legally sepa- plan, the level of benefits to be provided to each
rated (and didn't remarry) before the end of the participant is spelled out in the plan. The plan
How Much Can You year, you can't deduct any contributions to your administrator figures the amount needed to pro-
Deduct? spouse's IRA. After a divorce or legal separa- vide those benefits, and those amounts are
tion, you can deduct only contributions to your contributed to the plan. Defined benefit plans in-
Generally, you can deduct the lesser of: own IRA. Your deductions are subject to the clude pension plans and annuity plans.
• The contributions to your traditional IRA for rules for single individuals.
No vested interest. If you accrue a benefit for
the year, or Covered by an employer retirement plan. If a plan year, you are covered by that plan even if
• The general limit (or the Kay Bailey Hutchi- you or your spouse was covered by an em- you have no vested interest in (legal right to) the
son Spousal IRA limit, if it applies). ployer retirement plan at any time during the accrual.
year for which contributions were made, your
However, if you or your spouse was covered by deduction may be further limited. This is dis-
an employer retirement plan, you may not be Situations in Which You Aren’t
cussed later under Limit if Covered by Employer
able to deduct this amount. See Limit if Covered Plan. Limits on the amount you can deduct don't Covered
by Employer Plan, later. affect the amount that can be contributed. See Unless you are covered under another em-
You may be able to claim a credit for Nondeductible Contributions, later. ployer plan, you aren't covered by an employer
TIP contributions to your traditional IRA. plan if you are in one of the situations described
below.
For more information, see chapter 3 of Are You Covered by an Employer
Pub. 590-A. Plan? Social security or railroad retirement. Cov-
The Form W-2 you receive from your employer erage under social security or railroad retire-
Trustees' fees. Trustees' administrative fees ment isn't coverage under an employer retire-
that are billed separately and paid in connection has a box used to indicate whether you were
covered for the year. The “Retirement plan” box ment plan.
with your traditional IRA aren't deductible as
IRA contributions. You are also not able to de- should be checked if you were covered. Benefits from a previous employer's plan. If
duct these fees as an itemized deduction. Reservists and volunteer firefighters should you receive retirement benefits from a previous
also see Situations in Which You Aren’t Cov- employer's plan, you aren't covered by that
Brokers' commissions. Brokers' commis- ered, later. plan.
sions are part of your IRA contribution and, as
If you aren't certain whether you were cov-
such, are deductible subject to the limits. Reservists. If the only reason you participate
ered by your employer's retirement plan, you
in a plan is because you are a member of a re-
Full deduction. If neither you nor your spouse should ask your employer.
serve unit of the U.S. Armed Forces, you may
was covered for any part of the year by an em- not be covered by the plan. You aren't covered
Federal judges. For purposes of the IRA de-
ployer retirement plan, you can take a deduction by the plan if both of the following conditions are
duction, federal judges are covered by an em-
ployer retirement plan. met.
1. The plan you participate in is established
for its employees by:

Table 9-1. Effect of Modified AGI1 on Deduction if You Are Covered by to only a partial (reduced) deduction or no de-
Retirement Plan at Work duction at all, depending on your income and
your filing status.
If you are covered by a retirement plan at work, use this table to determine if your modified AGI Your deduction begins to decrease (phase
affects the amount of your deduction. out) when your income rises above a certain
amount and is eliminated altogether when it
IF your filing status is... AND your modified AGI is... THEN you can take... reaches a higher amount. These amounts vary
depending on your filing status.
Single $73,000 or less a full deduction. To determine if your deduction is subject to
phaseout, you must determine your modified
more than $73,000 a partial deduction.
or AGI and your filing status. See Filing status and
but less than $83,000
Modified AGI, later. Then use Table 9-1 or Ta-
Head of household $83,000 or more no deduction. ble 9-2 to determine if the phaseout applies.
Married filing jointly $116,000 or less a full deduction. Social security recipients. Instead of using
Table 9-1 or Table 9-2, use the worksheets in
more than $116,000 a partial deduction. Appendix B of Pub. 590-A if, for the year, all of
or
but less than $136,000 the following apply.
Qualifying surviving $136,000 or more no deduction. • You received social security benefits.
spouse
• You received taxable compensation.
Married filing less than $10,000 a partial deduction. • Contributions were made to your traditional
separately2 IRA.
$10,000 or more no deduction.
• You or your spouse was covered by an em-
1
Modified AGI (adjusted gross income). See Modified AGI, later. ployer retirement plan.
2
If you didn't live with your spouse at any time during the year, your filing status is considered Single for this Use those worksheets to figure your IRA deduc-
purpose (therefore, your IRA deduction is determined under the “Single” column). tion, your nondeductible contribution, and the
taxable portion, if any, of your social security
Table 9-2. Effect of Modified AGI1 on Deduction if You Aren’t Covered by benefits.
Retirement Plan at Work Deduction phaseout. If you are covered by an
If you aren't covered by a retirement plan at work, use this table to determine if your modified AGI employer retirement plan and you didn't receive
affects the amount of your deduction. any social security retirement benefits, your IRA
deduction may be reduced or eliminated de-
pending on your filing status and modified AGI
IF your filing status is... AND your modified AGI is... THEN you can take... as shown in Table 9-1.
Single, any amount a full deduction. If your spouse is covered. If you aren't
Head of household, or covered by an employer retirement plan, but
Qualifying surviving spouse your spouse is, and you didn't receive any so-
cial security benefits, your IRA deduction may
Married filing jointly or any amount a full deduction. be reduced or eliminated entirely depending on
separately with a spouse who your filing status and modified AGI as shown in
isn't covered by a plan at work Table 9-2.
Married filing jointly with a $218,000 or less a full deduction. Filing status. Your filing status depends pri-
spouse who is covered by a plan marily on your marital status. For this purpose,
more than $218,000 a partial deduction.
at work you need to know if your filing status is single,
but less than $228,000
head of household, married filing jointly, qualify-
$228,000 or more no deduction. ing surviving spouse, or married filing sepa-
rately. If you need more information on filing sta-
Married filing separately with a less than $10,000 a partial deduction.
tus, see chapter 2.
spouse who is covered by a plan
$10,000 or more no deduction.
at work2 Lived apart from spouse. If you didn't live
with your spouse at any time during the year
1
Modified AGI (adjusted gross income). See Modified AGI, later. and you file a separate return, your filing status,
2
You are entitled to the full deduction if you didn't live with your spouse at any time during the year. for this purpose, is single.
Modified AGI. You may be able to use Work-
a. The United States, 1. The plan you participate in is established
sheet 9-1 to figure your modified AGI. However,
for its employees by:
b. A state or political subdivision of a if you made contributions to your IRA for 2023
state, or a. The United States, and received a distribution from your IRA in
2023, see Pub. 590-A.
c. An instrumentality of either (a) or (b) b. A state or political subdivision of a
above. state, or Don't assume that your modified AGI is
! the same as your compensation. Your
2. You didn't serve more than 90 days on ac- c. An instrumentality of either (a) or (b) CAUTION modified AGI may include income in
tive duty during the year (not counting duty above.
addition to your compensation (discussed ear-
for training).
2. Your accrued retirement benefits at the be- lier), such as interest, dividends, and income
Volunteer firefighters. If the only reason you ginning of the year won't provide more from IRA distributions.
participate in a plan is because you are a volun- than $1,800 per year at retirement.
When filing Form 1040 or 1040-SR, refigure
teer firefighter, you may not be covered by the the AGI amount on line 11 without taking into
plan. You aren't covered by the plan if both of Limit if Covered by Employer Plan account any of the following amounts.
the following conditions are met.
If either you or your spouse was covered by an • IRA deduction.
employer retirement plan, you may be entitled
• Student loan interest deduction.
• Foreign earned income exclusion. From Series EE and I U.S. Savings Bonds • Exclusion of employer-provided adoption
• Foreign housing exclusion or deduction. Issued After 1989. benefits shown on Form 8839, Qualified
Adoption Expenses.
• Exclusion of qualified savings bond interest
shown on Form 8815, Exclusion of Interest This is your modified AGI.

Worksheet 9-1. Figuring Your Modified AGI
Keep for Your Records
Use this worksheet to figure your modified AGI for traditional IRA purposes.
1. Enter your AGI from Form 1040 or 1040-SR, line 11, figured without taking into account the amount from
Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . . . . . . . . . . . . . 2.
3. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 . . . . . . . . . . . . . . . . . 3.
4. Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter any excludable savings bond interest from Form 8815, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 .................. 6.
7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes . . . . . . . . . . . . . . . . . . . . . . 7.
Both contributions for 2023 and distribu-

tions in 2023. If all three of the following apply,
Form 8606. To designate contributions as non-
deductible, you must file Form 8606.
Inherited IRAs
any IRA distributions you received in 2023 may You don't have to designate a contribution If you inherit a traditional IRA, you are called a
be partly tax free and partly taxable. as nondeductible until you file your tax return. beneficiary. A beneficiary can be any person or
• You received distributions in 2023 from one When you file, you can even designate other- entity the owner chooses to receive the benefits
or more traditional IRAs. wise deductible contributions as nondeductible. of the IRA after the owner dies. Beneficiaries of
You must file Form 8606 to report nondeduc- a traditional IRA must include in their gross in-
• You made contributions to a traditional IRA tible contributions even if you don't have to file a come any taxable distributions they receive.
for 2023. tax return for the year.
• Some of those contributions may be non- Inherited from spouse. If you inherit a tradi-
A Form 8606 isn't used for the year that tional IRA from your spouse, you generally have
deductible contributions.
! you make a rollover from a qualified re- the following three choices.
If this is your situation, you must figure the taxa- CAUTION tirement plan to a traditional IRA and
ble part of the traditional IRA distribution before the rollover includes nontaxable amounts. In 1. Treat it as your own IRA by designating
you can figure your modified AGI. To do this, those situations, a Form 8606 is completed for yourself as the account owner.
you can use Worksheet 1-1 in Pub. 590-B. the year you take a distribution from that IRA. 2. Treat it as your own by rolling it over into
If at least one of the above doesn't apply, fig- See Form 8606 under Distributions Fully or your IRA, or to the extent it is taxable, into
ure your modified AGI using Worksheet 9-1. Partly Taxable, later. a:
How to figure your reduced IRA deduction. a. Qualified employer plan,
Failure to report nondeductible contribu-
You can figure your reduced IRA deduction for
tions. If you don't report nondeductible contri- b. Qualified employee annuity plan (sec-
Form 1040 or 1040-SR by using the worksheets
butions, all of the contributions to your tradi- tion 403(a) plan),
in chapter 1 of Pub. 590-A. Also, the Instruc-
tional IRA will be treated as deductible
tions for Form 1040 include similar worksheets c. Tax-sheltered annuity plan (section
contributions when withdrawn. All distributions
that you may be able to use instead. 403(b) plan), or
from your IRA will be taxed unless you can
show, with satisfactory evidence, that nonde- d. Deferred compensation plan of a state
Reporting Deductible ductible contributions were made. or local government (section 457
Contributions Penalty for overstatement. If you overstate plan).
When filing Form 1040 or 1040-SR, enter your the amount of nondeductible contributions on 3. Treat yourself as the beneficiary rather
IRA deduction on Schedule 1 (Form 1040), your Form 8606 for any tax year, you must pay a than treating the IRA as your own.
line 20. penalty of $100 for each overstatement, unless
it was due to reasonable cause. Treating it as your own. You will be consid-
ered to have chosen to treat the IRA as your
Nondeductible Penalty for failure to file Form 8606. You own if:
Contributions will have to pay a $50 penalty if you don't file a
required Form 8606, unless you can prove that • Contributions (including rollover contribu-
the failure was due to reasonable cause. tions) are made to the inherited IRA, or
Although your deduction for IRA contributions
may be reduced or eliminated, contributions • You don't take the required minimum distri-
can be made to your IRA up to the general limit Tax on earnings on nondeductible contribu- bution for a year as a beneficiary of the
or, if it applies, the Kay Bailey Hutchison tions. As long as contributions are within the IRA.
Spousal IRA limit. The difference between your contribution limits, none of the earnings or gains You will only be considered to have chosen to
total permitted contributions and your IRA de- on contributions (deductible or nondeductible) treat the IRA as your own if:
duction, if any, is your nondeductible contribu- will be taxed until they are distributed. See
tion. When Can You Withdraw or Use IRA Assets,
• You are the sole beneficiary of the IRA, and
later. • You have an unlimited right to withdraw
Example. You are 30 years old and single. amounts from it.
In 2023, you were covered by a retirement plan Cost basis. You will have a cost basis in your
at work. Your salary was $67,000. Your modified traditional IRA if you made any nondeductible However, if you receive a distribution from
AGI was $85,000. You made a $6,500 IRA con- contributions. Your cost basis is the sum of the your deceased spouse's IRA, you can roll that
tribution for 2023. Because you were covered nondeductible contributions to your IRA minus distribution over into your own IRA within the
by a retirement plan and your modified AGI was any withdrawals or distributions of nondeducti- 60-day time limit, as long as the distribution isn't
over $83,000, you can't deduct the $6,500 IRA ble contributions. a required distribution, even if you aren't the
contribution. You must designate this contribu- sole beneficiary of your deceased spouse's
tion as a nondeductible contribution by report- IRA.
ing it on Form 8606, as explained next. Inherited from someone other than spouse.
If you inherit a traditional IRA from anyone other
than your deceased spouse, you can't treat the

inherited IRA as your own. This means that you other (or the same) IRA in any 1-year period, re-
can't make any contributions to the IRA. It also gardless of the number of IRAs you own. The
Treatment of rollovers. You can't deduct a
means you can't roll over any amounts into or limit applies by aggregating all of an individual's
rollover contribution, but you must report the
out of the inherited IRA. However, you can make IRAs, including SEP and SIMPLE IRAs, as well
rollover distribution on your tax return as dis-
a trustee-to-trustee transfer as long as the IRA as traditional and Roth IRAs, effectively treating
cussed later under Reporting rollovers from
into which amounts are being moved is set up them as one IRA for purposes of the limit. How-
IRAs and Reporting rollovers from employer
and maintained in the name of the deceased ever, trustee-to-trustee transfers between IRAs
plans.
IRA owner for the benefit of you as beneficiary. aren't limited and rollovers from traditional IRAs
For more information, see Inherited IRAs un- Rollover notice. A written explanation of to Roth IRAs (conversions) aren't limited.
der Rollover From One IRA Into Another, later. rollover treatment must be given to you by the
Example. You have three traditional IRAs:
plan (other than an IRA) making the distribution.
IRA-1, IRA-2, and IRA-3. You didn't take any
Can You Move Retirement See Written explanation to recipients in Pub.
590-A.
distributions from your IRAs in 2023. On Janu-
Plan Assets? ary 1, 2024, you took a distribution from IRA-1
Kinds of rollovers from a traditional IRA. and rolled it over into IRA-2 on the same day.
You can transfer, tax free, assets (money or You may be able to roll over, tax free, a distribu- For 2024, you can't roll over any other 2023 IRA
property) from other retirement plans (including tion from your traditional IRA into a qualified distribution, including a rollover distribution in-
traditional IRAs) to a traditional IRA. You can plan. These plans include the federal Thrift Sav- volving IRA-3. This wouldn’t apply to a
make the following kinds of transfers. ings Plan (for federal employees), deferred trustee-to-trustee transfer or a Roth IRA conver-
compensation plans of state or local govern- sion.
• Transfers from one trustee to another. ments (section 457 plans), and tax-sheltered
Partial rollovers. If you withdraw assets from a
• Rollovers. annuity plans (section 403(b) plans). The part of
traditional IRA, you can roll over part of the with-
the distribution that you can roll over is the part
• Transfers incident to a divorce. drawal tax free and keep the rest of it. The
that would otherwise be taxable (includible in
Transfers to Roth IRAs. Under certain condi- amount you keep will generally be taxable (ex-
your income). Qualified plans may, but aren't re-
tions, you can move assets from a traditional cept for the part that is a return of nondeductible
quired to, accept such rollovers.
IRA or from a designated Roth account to a contributions). The amount you keep may be
Roth IRA. You can also move assets from a Time limit for making a rollover contribu- subject to the 10% additional tax on early distri-
qualified retirement plan to a Roth IRA. See Can tion. You must generally make the rollover con- butions, discussed later under What Acts Result
You Move Amounts Into a Roth IRA? under tribution by the 60th day after the day you re- in Penalties or Additional Taxes.
Roth IRAs, later. ceive the distribution from your traditional IRA or
Required distributions. Amounts that must
your employer's plan.
be distributed during a particular year under the
The IRS may waive the 60-day requirement
Trustee-to-Trustee Transfer where the failure to do so would be against
required minimum distribution rules (discussed
later) aren't eligible for rollover treatment.
A transfer of funds in your traditional IRA from equity or good conscience, such as in the event
one trustee directly to another, either at your re- of a casualty, disaster, or other event beyond Inherited IRAs. If you inherit a traditional IRA
quest or at the trustee's request, isn't a rollover. your reasonable control. For more information, from your spouse, you can generally roll it over,
This includes the situation where the current see Can You Move Retirement Plan Assets? in or you can choose to make the inherited IRA
trustee issues a check to the new trustee, but chapter 1 of Pub. 590-A. your own. See Treating it as your own, earlier.
gives it to you to deposit. Because there is no
Extension of rollover period. If an amount Not inherited from spouse. If you inherit a
distribution to you, the transfer is tax free. Be-
distributed to you from a traditional IRA or a traditional IRA from someone other than your
cause it isn't a rollover, it isn't affected by the
qualified employer retirement plan is a frozen spouse, you can't roll it over or allow it to receive
1-year waiting period required between roll-
deposit at any time during the 60-day period al- a rollover contribution. You must withdraw the
overs, discussed later under Rollover From One
lowed for a rollover, special rules extend the roll- IRA assets within a certain period. For more in-
IRA Into Another. For information about direct
over period. For more information, see Can You formation, see When Must You Withdraw As-
transfers to IRAs from retirement plans other
Move Retirement Plan Assets? in chapter 1 of sets? (Required Minimum Distributions) in
than IRAs, see Can You Move Retirement Plan
Pub. 590-A. chapter 1 of Pub. 590-B.
Assets? in chapter 1 and Can You Move
Amounts Into a Roth IRA? in chapter 2 of Pub. Reporting rollovers from IRAs. Report any
590-A. Rollover From One IRA Into rollover from one traditional IRA to the same or
Another another traditional IRA on Form 1040 or
Rollovers 1040-SR as follows.
You can withdraw, tax free, all or part of the as- Enter the total amount of the distribution on
Generally, a rollover is a tax-free distribution to sets from one traditional IRA if you reinvest Form 1040 or 1040-SR, line 4a. If the total
you of cash or other assets from one retirement them within 60 days in the same or another tra- amount on Form 1040 or 1040-SR, line 4a, was
plan that you contribute (roll over) to another re- ditional IRA. Because this is a rollover, you can't rolled over, enter zero on Form 1040 or
tirement plan. The contribution to the second deduct the amount that you reinvest in an IRA. 1040-SR, line 4b. If the total distribution wasn't
retirement plan is called a rollover contribution.
Waiting period between rollovers. Generally, rolled over, enter the taxable portion of the part
if you make a tax-free rollover of any part of a that wasn't rolled over on Form 1040 or
Note. An amount rolled over tax free from
distribution from a traditional IRA, you can't, 1040-SR, line 4b. Enter “Rollover” next to Form
one retirement plan to another is generally in-
within a 1-year period, make a tax-free rollover 1040 or 1040-SR, line 4b. For more information,
cludible in income when it is distributed from the
of any later distribution from that same IRA. You see the Instructions for Form 1040.
second plan.
also can't make a tax-free rollover of any If you rolled over the distribution into a quali-
Kinds of rollovers to a traditional IRA. You amount distributed, within the same 1-year pe- fied plan (other than an IRA) or you make the
can roll over amounts from the following plans riod, from the IRA into which you made the rollover in 2024, attach a statement explaining
into a traditional IRA. tax-free rollover. what you did.
• A traditional IRA. The 1-year period begins on the date you re-
ceive the IRA distribution, not on the date you
• An employer's qualified retirement plan for roll it over into an IRA. Rules apply to the num-
its employees. ber of rollovers you can have with your tradi-
• A deferred compensation plan of a state or tional IRAs. See Application of one-rollover limi-
local government (section 457 plan). tation next.
• A tax-sheltered annuity plan (section Application of one-rollover limitation. You
403(b) plan). can make only one rollover from an IRA to an-

Rollover From Employer's Plan receive the distribution on your behalf can be If you must include any amount in your gross
Into an IRA treated as an eligible rollover distribution if you income, you may have to increase your with-
are the designated beneficiary of the plan and holding or make estimated tax payments. See
You can roll over into a traditional IRA all or part not the employee's spouse. The IRA is treated chapter 4.
of an eligible rollover distribution you receive as an inherited IRA. For more information about
from your (or your deceased spouse's): inherited IRAs, see Inherited IRAs, earlier. Recharacterizations
• Employer's qualified pension, profit-shar- Reporting rollovers from employer plans.
ing, or stock bonus plan; You may be able to treat a contribution made to
Enter the total distribution (before income tax or one type of IRA as having been made to a dif-
• Annuity plan; other deductions were withheld) on Form 1040 ferent type of IRA. This is called recharacteriz-
• Tax-sheltered annuity plan (section 403(b) or 1040-SR, line 4a. This amount should be ing the contribution. See Can You Move Retire-
plan); or shown in box 1 of Form 1099-R, Distributions ment Plan Assets? in chapter 1 of Pub. 590-A
From Pensions, Annuities, Retirement or for more detailed information.
• Governmental deferred compensation plan Profit-Sharing Plans, IRAs, Insurance Con-
(section 457 plan). tracts, etc. From this amount, subtract any con- How to recharacterize a contribution. To re-
tributions (usually shown in box 5 of Form characterize a contribution, you must generally
A qualified plan is one that meets the re-
1099-R) that were taxable to you when made. have the contribution transferred from the first
quirements of the Internal Revenue Code.
From that result, subtract the amount that was IRA (the one to which it was made) to the sec-
Eligible rollover distribution. Generally, an rolled over either directly or within 60 days of re- ond IRA in a trustee-to-trustee transfer. If the
eligible rollover distribution is any distribution of ceiving the distribution. Enter the remaining transfer is made by the due date (including ex-
all or part of the balance to your credit in a quali- amount, even if zero, on Form 1040 or tensions) for your tax return for the year during
fied retirement plan except the following. 1040-SR, line 4b. Also, enter "Rollover" next to which the contribution was made, you can elect
Form 1040 or 1040-SR, line 4b. to treat the contribution as having been origi-
1. A required minimum distribution (ex-
nally made to the second IRA instead of to the
plained later under When Must You With-
first IRA. If you recharacterize your contribution,
draw IRA Assets? (Required Minimum Transfers Incident to Divorce you must do all three of the following.
Distributions)).
If an interest in a traditional IRA is transferred
• Include in the transfer any net income allo-
2. A hardship distribution. from your spouse or former spouse to you by a cable to the contribution. If there was a
divorce or separate maintenance decree or a
3. Any of a series of substantially equal peri- loss, the net income you must transfer may
written document related to such a decree, the
odic distributions paid at least once a year be a negative amount.
interest in the IRA, starting from the date of the
over: • Report the recharacterization on your tax
transfer, is treated as your IRA. The transfer is
a. Your lifetime or life expectancy, tax free. For detailed information, see Distribu- return for the year during which the contri-
tions under divorce or similar proceedings (al- bution was made.
b. The lifetimes or life expectancies of
ternate payees) under Rollover From Employ- • Treat the contribution as having been
you and your beneficiary, or
er's Plan Into an IRA in Pub. 590-A. made to the second IRA on the date that it
c. A period of 10 years or more. was actually made to the first IRA.
4. Corrective distributions of excess contribu- Converting From Any Traditional No recharacterizations of conversions
tions or excess deferrals, and any income IRA to a Roth IRA made in 2018 or later. A conversion of a tradi-
allocable to the excess, or of excess an- tional IRA to a Roth IRA, and a rollover from any
Allowable conversions. You can withdraw all
nual additions and any allocable gains. other eligible retirement plan to a Roth IRA,
or part of the assets from a traditional IRA and
5. A loan treated as a distribution because it reinvest them (within 60 days) in a Roth IRA. made in tax years beginning after tax year
doesn't satisfy certain requirements either The amount that you withdraw and timely con- 2017, can’t be recharacterized as having been
when made or later (such as upon de- tribute (convert) to the Roth IRA is called a con- made to a traditional IRA. If you made a conver-
fault), unless the participant's accrued version contribution. If properly (and timely) rol- sion in the 2017 tax year, you had until the due
benefits are reduced (offset) to repay the led over, the 10% additional tax on early date (including extensions) for filing the return
loan. For more information, see Plan loan distributions won't apply. However, a part or all for that tax year to recharacterize it.
offsets under Time Limit for Making a Roll- of the conversion contribution from your tradi- No deduction allowed. You can't deduct the
over Contribution in Pub. 590-A. tional IRA is included in your gross income. contribution to the first IRA. Any net income you
6. Dividends on employer securities. Required distributions. You can't convert transfer with the recharacterized contribution is
amounts that must be distributed from your tra- treated as earned in the second IRA.
7. The cost of life insurance coverage.
ditional IRA for a particular year (including the How do you recharacterize a contribution?
Your rollover into a traditional IRA may in- calendar year in which you reach age 72 under To recharacterize a contribution, you must notify
clude both amounts that would be taxable and the required minimum distribution rules (dis- both the trustee of the first IRA (the one to
amounts that wouldn’t be taxable if they were cussed later)). which the contribution was actually made) and
distributed to you but not rolled over. To the ex- the trustee of the second IRA (the one to which
Income. You must include in your gross in-
tent the distribution is rolled over into a tradi- the contribution is being moved) that you have
come distributions from a traditional IRA that
tional IRA, it isn’t includible in your income. elected to treat the contribution as having been
you would have had to include in income if you
Any nontaxable amounts that you roll hadn't converted them into a Roth IRA. These made to the second IRA rather than the first.
amounts are normally included in income on You must make the notifications by the date of
TIP over into your traditional IRA become
part of your basis (cost) in your IRAs. your return for the year that you converted them the transfer. Only one notification is required if
To recover your basis when you take distribu- from a traditional IRA to a Roth IRA. both IRAs are maintained by the same trustee.
tions from your IRA, you must complete Form The notification(s) must include all of the follow-
You don't include in gross income any part of
8606 for the year of the distribution. See Form ing information.
a distribution from a traditional IRA that is a re-
8606 under Distributions Fully or Partly Taxable, turn of your basis, as discussed later. • The type and amount of the contribution to
later. You must file Form 8606 to report 2023 con- the first IRA that is to be recharacterized.
versions from traditional, SEP, or SIMPLE IRAs • The date on which the contribution was
Rollover by nonspouse beneficiary. A direct to a Roth IRA in 2023 (unless you recharacter- made to the first IRA and the year for which
transfer from a deceased employee's qualified ized the entire amount) and to figure the amount it was made.
pension, profit-sharing, or stock bonus plan; an- to include in income.
nuity plan; tax-sheltered annuity (section • A direction to the trustee of the first IRA to
403(b)) plan; or governmental deferred com- transfer in a trustee-to-trustee transfer the
pensation (section 457) plan to an IRA set up to

amount of the contribution and any net in- tions under What Acts Result in Penalties or Ad- decedent's IRA, see When Must You Withdraw
come (or loss) allocable to the contribution ditional Taxes? in Pub. 590-B. Assets? (Required Minimum Distributions) in
to the trustee of the second IRA. chapter 1 of Pub. 590-B.
• The name of the trustee of the first IRA and When Must You Withdraw
the name of the trustee of the second IRA.
IRA Assets? (Required Are Distributions Taxable?
• Any additional information needed to make
the transfer. Minimum Distributions) In general, distributions from a traditional IRA
are taxable in the year you receive them.
Reporting a recharacterization. If you elect You can't keep funds in a traditional IRA indefi-
to recharacterize a contribution to one IRA as a nitely. Eventually, they must be distributed. If Exceptions. Exceptions to distributions from
contribution to another IRA, you must report the there are no distributions, or if the distributions traditional IRAs being taxable in the year you re-
recharacterization on your tax return as directed aren't large enough, you may have to pay a 25% ceive them are:
by Form 8606 and its instructions. You must excise tax on the amount not distributed as re- • Rollovers;
treat the contribution as having been made to quired. See Excess Accumulations (Insufficient
the second IRA. Distributions), later. The requirements for dis- • Qualified charitable distributions (QCDs),
discussed later;
tributing IRA funds differ depending on whether
When Can You Withdraw you are the IRA owner or the beneficiary of a • Tax-free withdrawals of contributions, dis-
decedent's IRA. cussed earlier; and
or Use IRA Assets? Required minimum distribution. The amount • The return of nondeductible contributions,
that must be distributed each year is referred to discussed later under Distributions Fully or
There are rules limiting use of your IRA assets Partly Taxable.
as the “required minimum distribution.”
and distributions from it. Violation of the rules
generally results in additional taxes in the year Distributions not eligible for rollover. Although a conversion of a traditional
of violation. See What Acts Result in Penalties Amounts that must be distributed (required min- ! IRA is considered a rollover for Roth
or Additional Taxes, later. imum distributions) during a particular year CAUTION IRA purposes, it isn't an exception to
aren't eligible for rollover treatment. the rule that distributions from a traditional IRA
Contributions returned before the due date are taxable in the year you receive them. Con-
of return. If you made IRA contributions in IRA owners. If you are the owner of a tradi- version distributions are includible in your gross
2023, you can withdraw them tax free by the tional IRA, you must generally start receiving income subject to this rule and the special rules
due date of your return. If you have an extension distributions from your IRA by April 1 of the year for conversions explained in Converting From
of time to file your return, you can withdraw following the year in which you reach age 72. Any Traditional IRA Into a Roth IRA under Can
them tax free by the extended due date. You April 1 of the year following the year in which You Move Retirement Plan Assets? in chapter 1
can do this if, for each contribution you with- you reach age 72 is referred to as the “required of Pub. 590-A.
draw, both of the following conditions apply. beginning date.”
• You didn't take a deduction for the contri- Distributions by the required beginning Qualified charitable distributions (QCDs). A
bution. date. You must receive at least a minimum QCD is generally a nontaxable distribution
amount for each year starting with the year you made directly by the trustee of your IRA to an
• You withdraw any interest or other income organization eligible to receive tax deductible
earned on the contribution. You can take reach age 72. If you don't (or didn't) receive that
minimum amount in the year you become age contributions. See Qualified Charitable Distribu-
into account any loss on the contribution
72, then you must receive distributions for the tions in Pub. 590-B for more information.
while it was in the IRA when figuring the
amount that must be withdrawn. If there year you become age 72 by April 1 of the next A QCD will count towards your required
was a loss, the net income earned on the year. TIP minimum distribution. See Qualified
contribution may be a negative amount. If an IRA owner dies after reaching age 72 charitable distributions under Are Dis-
but before April 1 of the next year, no minimum tributions Taxable? in chapter 1 of Pub. 590-B
Note. To figure the amount you must with- distribution is required because death occurred for more information.
draw, see Worksheet 1-4 under When Can You before the required beginning date.
Withdraw or Use Assets? in chapter 1 of Pub. Individuals who reach age 72 after De- Ordinary income. Distributions from tradi-
590-A. tional IRAs that you include in income are taxed
TIP cember 31, 2022, may delay receiving
their required minimum distributions as ordinary income.
Earnings includible in income. You must until April 1 of the year following the year in No special treatment. In figuring your tax, you
include in income any earnings on the contribu- which they reach age 73. can't use the 10-year tax option or capital gain
tions you withdraw. Include the earnings in in-
treatment that applies to lump-sum distributions
come for the year in which you made the contri- Even if you begin receiving distribu- from qualified retirement plans.
butions, not in the year in which you withdraw tions before you attain age 72, you
them. !
CAUTION must begin figuring and receiving re-
quired minimum distributions by your required Distributions Fully or Partly

Generally, except for any part of a with-
drawal that is a return of nondeductible beginning date. Taxable
!
CAUTION contributions (basis), any withdrawal of Distributions from your traditional IRA may be
your contributions after the due date (or exten- Distributions after the required beginning fully or partly taxable, depending on whether
ded due date) of your return will be treated as a date. The required minimum distribution for your IRA includes any nondeductible contribu-
taxable distribution. Excess contributions can any year after the year you turn age 72 must be tions.
also be recovered tax free as discussed under made by December 31 of that later year. Fully taxable. If only deductible contributions
What Acts Result in Penalties or Additional were made to your traditional IRA (or IRAs, if
Taxes, later. you have more than one), you have no basis in
Beneficiaries. If you are the beneficiary of a
decedent's traditional IRA, the requirements for your IRA. Because you have no basis in your
Early distributions tax. The 10% additional
distributions from that IRA generally depend on IRA, any distributions are fully taxable when re-
tax on distributions made before you reach age
whether the IRA owner died before or after the ceived. See Reporting taxable distributions on
591/2 doesn't apply to these tax-free withdraw-
required beginning date for distributions. your return, later.
als of your contributions. However, the distribu-
tion of interest or other income must be repor- More information. For more information, in- Partly taxable. If you made nondeductible
ted on Form 5329 and, unless the distribution cluding how to figure your required minimum contributions or rolled over any after-tax
qualifies as an exception to the age 591/2 rule, it distribution each year and how to figure your re- amounts to any of your traditional IRAs, you
will be subject to this tax. See Early Distribu- quired distribution if you are a beneficiary of a have a cost basis (investment in the contract)

equal to the amount of those contributions. • Making excess contributions. • Stamps,
These nondeductible contributions aren't taxed
• Taking early distributions. • Coins,
when they are distributed to you. They are a re-
turn of your investment in your IRA. • Allowing excess amounts to accumulate • Alcoholic beverages, and
Only the part of the distribution that repre- (failing to take required distributions).
• Certain other tangible personal property.
sents nondeductible contributions and rolled There are penalties for overstating the
over after-tax amounts (your cost basis) is tax amount of nondeductible contributions and for Exception. Your IRA can invest in one-,
free. If nondeductible contributions have been failure to file a Form 8606, if required. one-half-, one-quarter-, or one-tenth-ounce U.S.
made or after-tax amounts have been rolled gold coins, or one-ounce silver coins minted by
over to your IRA, distributions consist partly of the Treasury Department. It can also invest in
nondeductible contributions (basis) and partly
Prohibited Transactions certain platinum coins and certain gold, silver,
of deductible contributions, earnings, and gains Generally, a prohibited transaction is any im- palladium, and platinum bullion.
(if there are any). Until all of your basis has proper use of your traditional IRA by you, your
been distributed, each distribution is partly non- beneficiary, or any disqualified person. Excess Contributions
taxable and partly taxable. Disqualified persons include your fiduciary
Generally, an excess contribution is the amount
and members of your family (spouse, ancestor,
Form 8606. You must complete Form 8606 contributed to your traditional IRA(s) for the year
lineal descendent, and any spouse of a lineal
and attach it to your return if you receive a distri- that is more than the smaller of:
descendent).
bution from a traditional IRA and have ever
The following are examples of prohibited • The maximum deductible amount for the
made nondeductible contributions or rolled over year (for 2023, this is $6,500 ($7,500 if you
transactions with a traditional IRA.
after-tax amounts to any of your traditional are 50 or older)); or
IRAs. Using the form, you will figure the nontax- • Borrowing money from it; see Pub. 590-B.
able distributions for 2023 and your total IRA • Your taxable compensation for the year.
• Selling property to it.
basis for 2023 and earlier years. An excess contribution could be the result of
• Using it as security for a loan. your contribution, your spouse's contribution,
Note. If you are required to file Form 8606 • Buying property for personal use (present your employer's contribution, or an improper
but you aren't required to file an income tax re- or future) with IRA funds. rollover contribution. If your employer makes
turn, you must still file Form 8606. Send it to the contributions on your behalf to a SEP IRA, see
IRS at the time and place you would otherwise Effect on an IRA account. Generally, if you or
chapter 2 of Pub. 560.
file an income tax return. your beneficiary engages in a prohibited trans-
action in connection with your traditional IRA Tax on excess contributions. In general, if
Distributions reported on Form 1099-R. If account at any time during the year, the account the excess contributions for a year aren't with-
you receive a distribution from your traditional stops being an IRA as of the first day of that drawn by the date your return for the year is due
IRA, you will receive Form 1099-R, or a similar year. (including extensions), you are subject to a 6%
statement. IRA distributions are shown in boxes tax. You must pay the 6% tax each year on ex-
1 and 2a of Form 1099-R. The number or letter Effect on you or your beneficiary. If your ac-
cess amounts that remain in your traditional IRA
codes in box 7 tell you what type of distribution count stops being an IRA because you or your
at the end of your tax year. The tax can't be
you received from your IRA. beneficiary engaged in a prohibited transaction,
more than 6% of the combined value of all your
the account is treated as distributing all its as-
Withholding. Federal income tax is withheld IRAs as of the end of your tax year. The addi-
sets to you at their fair market values on the first
from distributions from traditional IRAs unless tional tax is figured on Form 5329.
day of the year. If the total of those values is
you choose not to have tax withheld. See chap- more than your basis in the IRA, you will have a Excess contributions withdrawn by due
ter 4. taxable gain that is includible in your income. date of return. You won't have to pay the 6%
For information on figuring your gain and report- tax if you withdraw an excess contribution made
IRA distributions delivered outside the
ing it in income, see Are Distributions Taxable, during a tax year and you also withdraw interest
United States. In general, if you are a U.S. citi-
earlier. The distribution may be subject to addi- or other income earned on the excess contribu-
zen or resident alien and your home address is
tional taxes or penalties. tion. You must complete your withdrawal by the
outside the United States or its territories, you
date your tax return for that year is due, includ-
can't choose exemption from withholding on Taxes on prohibited transactions. If some-
ing extensions.
distributions from your traditional IRA. one other than the owner or beneficiary of a tra-
ditional IRA engages in a prohibited transaction, How to treat withdrawn contributions.
Reporting taxable distributions on your re-
that person may be liable for certain taxes. In Don't include in your gross income an excess
turn. Report fully taxable distributions, includ-
general, there is a 15% tax on the amount of the contribution that you withdraw from your tradi-
ing early distributions, on Form 1040 or
prohibited transaction and a 100% additional tional IRA before your tax return is due if both
1040-SR, line 4b (no entry is required on Form
tax if the transaction isn't corrected. the following conditions are met.
1040 or 1040-SR, line 4a). If only part of the dis-
tribution is taxable, enter the total amount on More information. For more information on • No deduction was allowed for the excess
Form 1040 or 1040-SR, line 4a, and the taxable prohibited transactions, see What Acts Result in contribution.
part on Form 1040 or 1040-SR, line 4b. Penalties or Additional Taxes? in chapter 1 of
• You withdraw the interest or other income
Pub. 590-A. earned on the excess contribution.
What Acts Result in You can take into account any loss on the con-
Investment in Collectibles
Penalties or Additional If your traditional IRA invests in collectibles, the
tribution while it was in the IRA when figuring
the amount that must be withdrawn. If there was
Taxes? amount invested is considered distributed to a loss, the net income you must withdraw may
you in the year invested. You may have to pay be a negative amount.
The tax advantages of using traditional IRAs for the 10% additional tax on early distributions,
retirement savings can be offset by additional discussed later. How to treat withdrawn interest or other
taxes and penalties if you don't follow the rules. income. You must include in your gross in-
There are additions to the regular tax for us- Collectibles. These include: come the interest or other income that was
ing your IRA funds in prohibited transactions. • Artworks, earned on the excess contribution. Report it on
There are also additional taxes for the following your return for the year in which the excess con-
activities.
• Rugs, tribution was made. Your withdrawal of interest
• Antiques, or other income may be subject to an additional
• Investing in collectibles. 10% tax on early distributions, discussed later.
• Metals,
• Having unrelated business income; see Beginning on or after December 29, 2022,
Pub. 590-B. • Gems, the 10% additional tax will not apply to your

withdrawal of interest or other income, if with- Excess Contributions under What Acts Result in Note. Distributions that are timely and prop-
drawn on or before the due date (including ex- Penalties or Additional Taxes? in Pub. 590-A. erly rolled over, as discussed earlier, aren't sub-
tensions) of the income tax return. See Pub. ject to either regular income tax or the 10% ad-
590-B for more information. Early Distributions ditional tax. Certain withdrawals of excess
contributions after the due date of your return
Excess contributions withdrawn after due You must include early distributions of taxable are also tax free and therefore not subject to the
date of return. In general, you must include all amounts from your traditional IRA in your gross 10% additional tax. (See Excess contributions
distributions (withdrawals) from your traditional income. Early distributions are also subject to withdrawn after due date of return, earlier.) This
IRA in your gross income. However, if the fol- an additional 10% tax. See the discussion of also applies to transfers incident to divorce, as
lowing conditions are met, you can withdraw ex- Form 5329 under Reporting Additional Taxes, discussed earlier.
cess contributions from your IRA and not in- later, to figure and report the tax.
clude the amount withdrawn in your gross Receivership distributions. Early distribu-
income. Early distributions defined. Early distributions (with or without your consent) from sav-
tions are generally amounts distributed from ings institutions placed in receivership are sub-
• Total contributions (other than rollover con- your traditional IRA account or annuity before
tributions) for 2023 to your IRA weren't ject to this tax unless one of the exceptions
you are age 591/2. listed earlier applies. This is true even if the dis-
more than $6,500 ($7,500 if you are 50 or
older). Age 591/2 rule. Generally, if you are under age tribution is from a receiver that is a state agency.
591/2, you must pay a 10% additional tax on the Additional 10% tax. The additional tax on
• You didn't take a deduction for the excess distribution of any assets (money or other prop-
contribution being withdrawn. early distributions is 10% of the amount of the
erty) from your traditional IRA. Distributions be- early distribution that you must include in your
The withdrawal can take place at any time, even fore you are age 591/2 are called early distribu- gross income. This tax is in addition to any reg-
after the due date, including extensions, for fil- tions. ular income tax resulting from including the dis-
ing your tax return for the year. The 10% additional tax applies to the part of tribution in income.
the distribution that you have to include in gross
Excess contribution deducted in an earlier Nondeductible contributions. The tax on
income. It is in addition to any regular income
year. If you deducted an excess contribution in early distributions doesn't apply to the part of a
tax on that amount.
an earlier year for which the total contributions distribution that represents a return of your non-
weren't more than the maximum deductible After age 591/2 and before age 72. After deductible contributions (basis).
amount for that year (see the following table), you reach age 591/2, you can receive distribu-
you can still remove the excess from your tradi- tions without having to pay the 10% additional More information. For more information on
tional IRA and not include it in your gross in- tax. Even though you can receive distributions early distributions, see What Acts Result in Pen-
come. To do this, file Form 1040-X for that year after you reach age 591/2, distributions aren't re- alties or Additional Taxes? in chapter 1 of Pub.
and don't deduct the excess contribution on the quired until you reach age 72. See When Must 590-B.
amended return. Generally, you can file an You Withdraw IRA Assets? (Required Minimum
amended return within 3 years after you filed Distributions), earlier. Excess Accumulations
your return or 2 years from the time the tax was (Insufficient Distributions)
paid, whichever is later. Exceptions. There are several exceptions to
the age 591/2 rule. Even if you receive a distribu- You can't keep amounts in your traditional IRA
tion before you are age 591/2, you may not have indefinitely. Generally, you must begin receiving
Contribution to pay the 10% additional tax if you are in one of distributions by April 1 of the year following the
limit if 50 or the following situations. year in which you reach age 72. The required
older at the minimum distribution for any year after the year
Contribution end of the • You have unreimbursed medical expenses
that are more than 7.5% of your AGI. in which you reach age 72 must be made by
Year(s) limit year December 31 of that later year.
2023 $6,500 $7,500 • The distribution is for the cost of your medi-
cal insurance due to a period of unemploy- Individuals who reach age 72 after De-
2019 through TIP cember 31, 2022, may delay receiving
$6,000 $7,000 ment.
2022 their required minimum distributions
2013 through • You are totally and permanently disabled. until April 1 of the year following the year in
$5,500 $6,500
2018 • You have been certified as having a termi- which they reach age 73.
2008 through nal illness.
$5,000 $6,000 Tax on excess. If distributions are less than
2012
• You are the beneficiary of a deceased IRA the required minimum distribution for the year,
2006 or 2007 $4,000 $5,000 owner.
2005 $4,000 $4,500 you may have to pay a 25% excise tax for that
2002 through
• You are receiving distributions in the form year on the amount not distributed as required.
$3,000 $3,500 of a series of substantially equal periodic
2004 The excise tax on distributions that are
payments.
1997 through TIP less than the required minimum distri-
$2,000 — • The distribution is income on a corrective bution amount is reduced to 25% for
2001
before 1997 $2,250 — distribution. tax years beginning after December 29, 2022.
• The distribution is for your qualified higher Also, there is an additional reduction to 10% for
Excess due to incorrect rollover informa- education expenses. taxpayers meeting additional requirements. See
tion. If an excess contribution in your traditional Pub. 590-B for more information.
IRA is the result of a rollover and the excess oc- • You use the distributions to buy, build, or
rebuild a first home. Request to waive the tax. If the excess accu-
curred because the information the plan was re-
quired to give you was incorrect, you can with- • The distribution is due to an IRS levy of the mulation is due to reasonable error, and you
draw the excess contribution. The limits IRA or retirement plan. have taken, or are taking, steps to remedy the
mentioned above are increased by the amount insufficient distribution, you can request that the
• The distribution is a qualified reservist dis- tax be waived. If you believe you qualify for this
of the excess that is due to the incorrect infor- tribution.
mation. You will have to amend your return for relief, attach a statement of explanation and
the year in which the excess occurred to correct Most of these exceptions are explained under complete Form 5329 as instructed under
the reporting of the rollover amounts in that Early Distributions under What Acts Result in Waiver of tax for reasonable cause in the In-
year. Don't include in your gross income the Penalties or Additional Taxes? in chapter 1 of structions for Form 5329.
part of the excess contribution caused by the in- Pub. 590-B.
Exemption from tax. If you are unable to take
correct information. For more information, see required distributions because you have a

traditional IRA invested in a contract issued by You must file Form 5329 to report your ad- and your modified AGI (defined later) is less
an insurance company that is in state insurer ditional taxes. than:
delinquency proceedings, the 25% excise tax • If you rolled over part or all of a distribution • $228,000 for married filing jointly or qualify-
doesn't apply if the conditions and requirements from a qualified retirement plan, the part ing surviving spouse;
of Revenue Procedure 92-10 are satisfied. rolled over isn't subject to the tax on early
distributions.
• $153,000 for single, head of household, or
More information. For more information on married filing separately and you didn't live
excess accumulations, see What Acts Result in • If you have a qualified disaster distribution. with your spouse at any time during the
Penalties or Additional Taxes? in chapter 1 of year; or
Pub. 590-B.
Roth IRAs • $10,000 for married filing separately and
you lived with your spouse at any time dur-
Reporting Additional Taxes Regardless of your age, you may be able to es- ing the year.
Generally, you must use Form 5329 to report tablish and make nondeductible contributions to
a retirement plan called a Roth IRA. You may be eligible to claim a credit for
the tax on excess contributions, early distribu-
tions, and excess accumulations. TIP contributions to your Roth IRA. For
Contributions not reported. You don't report more information, see chapter 3 of Pub.
Filing a tax return. If you must file an individ- Roth IRA contributions on your return. 590-A.
ual income tax return, complete Form 5329 and
attach it to your Form 1040 or 1040-SR. Enter
the total additional taxes due on Schedule 2
What Is a Roth IRA? Is there an age limit for contributions? Con-
tributions can be made to your Roth IRA regard-
(Form 1040), line 8. A Roth IRA is an individual retirement plan that, less of your age.
Not filing a tax return. If you don't have to file except as explained in this chapter, is subject to Can you contribute to a Roth IRA for your
a tax return but do have to pay one of the addi- the rules that apply to a traditional IRA (defined spouse? You can contribute to a Roth IRA for
tional taxes mentioned earlier, file the comple- earlier). It can be either an account or an annu- your spouse provided the contributions satisfy
ted Form 5329 with the IRS at the time and ity. Individual retirement accounts and annuities the Kay Bailey Hutchison Spousal IRA limit (dis-
place you would have filed your Form 1040 or are described under How Can a Traditional IRA cussed under How Much Can Be Contributed,
1040-SR. Be sure to include your address on Be Opened? in chapter 1 of Pub. 590-A. earlier, under Traditional IRAs), you file jointly,
page 1 and your signature and date on page 2. To be a Roth IRA, the account or annuity and your modified AGI is less than $228,000.
Enclose, but don't attach, a check or money or- must be designated as a Roth IRA when it is
opened. A deemed IRA can be a Roth IRA. Be- Compensation. Compensation includes wa-
der made payable to “United States Treasury”
ginning in tax year 2023, both a SEP or SIMPLE ges, salaries, tips, professional fees, bonuses,
for the tax you owe, as shown on Form 5329.
IRA can be designated as a Roth IRA. and other amounts received for providing per-
Enter your social security number and “2023
sonal services. It also includes commissions,
Form 5329” on your check or money order. Unlike a traditional IRA, you can't deduct
self-employment income, nontaxable combat
contributions to a Roth IRA. But, if you satisfy
Form 5329 not required. You don't have to pay, military differential pay, taxable alimony and
the requirements, qualified distributions (dis-
use Form 5329 if any of the following situations separate maintenance payments, and taxable
cussed later) are tax free. You can leave
exists. non-tuition fellowship and stipend payments.
amounts in your Roth IRA as long as you live.
• Distribution code 1 (early distribution) is See What is compensation, earlier, for more
correctly shown in box 7 of all your Forms information.
1099-R. If you don't owe any other addi- When Can a Roth IRA Be Modified AGI. Your modified AGI for Roth IRA
tional tax on a distribution, multiply the tax- Opened? purposes is your AGI as shown on your return
able part of the early distribution by 10% with some adjustments. Use Worksheet 9-2 to
(0.10) and enter the result on Schedule 2 You can open a Roth IRA at any time. However, determine your modified AGI.
(Form 1040), line 8. Enter “No” to the left of the time for making contributions for any year is
the line to indicate that you don't have to limited. See When Can You Make Contributions
file Form 5329. However, if you owe this tax under Can You Contribute to a Roth IRA? next.
and also owe any other additional tax on a
distribution, don't enter this 10% additional
tax directly on your Form 1040 or 1040-SR.
Can You Contribute to a
Roth IRA?
Generally, you can contribute to a Roth IRA if
you have taxable compensation (defined later)

Worksheet 9-2. Modified AGI for Roth IRA Purposes Keep for Your Records
Use this worksheet to figure your modified AGI for Roth IRA purposes.
1. Enter your AGI from Form 1040 or 1040-SR, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth
IRA (included on Form 1040 or 1040-SR, line 4b) and a rollover from a qualified retirement
plan to a Roth IRA (included on Form 1040 or 1040-SR, line 5b) . . . . . . . . . . . . . . . . . . . . . . 2.
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter any traditional IRA deduction from Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . . 4.
5. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . . 5.
6. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 . . . . . . 6.
7. Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter any excludable savings bond interest from Form 8815, line 14 .................. 8.
9. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 . . . . . . . . 9.
10. Add the amounts on lines 3 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter:
• $228,000 if married filing jointly or qualifying surviving spouse,
• $10,000 if married filing separately and you lived with your
spouse at any time during the year, or
• $153,000 for all others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
Is the amount on line 10 more than the amount on line 11?
If yes, then see the Note below.
If no, then the amount on line 10 is your modified AGI for Roth IRA purposes.
Note. If the amount on line 10 is more than the amount on line 11 and you have other income or loss items, such as social
security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the
purpose of figuring your modified AGI for Roth IRA purposes. (If you receive social security benefits, use Worksheet 1 in
Appendix B of Pub. 590-A to refigure your AGI.) Then, go to line 3 above in this Worksheet 9-2 to refigure your modified AGI. If
you don't have other income or loss items subject to AGI-based phaseouts, your modified AGI for Roth IRA purposes is the
amount on line 10.
How Much Can Be Contributed? Roth IRAs and traditional IRAs. If contribu- • Your taxable compensation minus all con-
tions are made to both Roth IRAs and traditional tributions (other than employer contribu-
The contribution limit for Roth IRAs generally
IRAs established for your benefit, your contributions under a SEP or SIMPLE IRA plan) for
depends on whether contributions are made
tion limit for Roth IRAs is generally the same as the year to all IRAs other than Roth IRAs.
only to Roth IRAs or to both traditional IRAs and
your limit would be if contributions were made
Roth IRAs. However, if your modified AGI is above a certain
only to Roth IRAs, but then reduced by all con- amount, your contribution limit may be reduced,
Roth IRAs only. If contributions are made only tributions for the year to all IRAs other than Roth as explained next under Contribution limit re-
to Roth IRAs, your contribution limit is generally IRAs. Employer contributions under a SEP or duced.
the lesser of the following amounts. SIMPLE IRA plan don't affect this limit.
This means that your contribution limit is Contribution limit reduced. If your modified
• $6,500 ($7,500 if you are 50 or older in AGI is above a certain amount, your contribu-
2023). generally the lesser of the following amounts.
tion limit is gradually reduced. Use Table 9-3 to
• Your taxable compensation. • $6,500 ($7,500 if you are 50 or older in determine if this reduction applies to you.
2023) minus all contributions (other than
However, if your modified AGI is above a certain employer contributions under a SEP or
amount, your contribution limit may be reduced, SIMPLE IRA plan) for the year to all IRAs
as explained later under Contribution limit re- other than Roth IRAs.
duced.

Table 9-3. Effect of Modified AGI on Roth IRA Contribution
This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI.
IF you have taxable compensation and AND your modified

your filing status is... AGI is... THEN...
Married filing jointly or less than $218,000 you can contribute up to $6,500 ($7,500 if you are 50 or
Qualifying surviving spouse older in 2023).
at least $218,000 the amount you can contribute is reduced as explained
but less than $228,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$228,000 or more you can't contribute to a Roth IRA.
Married filing separately and you lived zero (-0-) you can contribute up to $6,500 ($7,500 if you are 50 or
with your spouse at any time during the year older in 2023).
more than zero (-0-) the amount you can contribute is reduced as explained
590-A.
Single, Head of household, or Married less than $138,000 you can contribute up to $6,500 ($7,500 if you are 50 or
filing separately and you didn't live with older in 2023).
your spouse at any time during the year
at least $138,000 the amount you can contribute is reduced as explained
590-A.
Figuring the reduction. If the amount you Withdrawal of excess contributions. For Conversion methods. You can convert
can contribute to your Roth IRA is reduced, see purposes of determining excess contributions, amounts from a traditional IRA to a Roth IRA in
Worksheet 2-2 under Can You Contribute to a any contribution that is withdrawn on or before any of the following ways.
Roth IRA? in chapter 2 of Pub. 590-A for how to the due date (including extensions) for filing
• Rollover. You can receive a distribution
figure the reduction. your tax return for the year is treated as an from a traditional IRA and roll it over (con-
amount not contributed. This treatment applies tribute it) to a Roth IRA within 60 days after
When Can You Make only if any earnings on the contributions are the distribution.
also withdrawn. The earnings are considered to
Contributions? have been earned and received in the year the • Trustee-to-trustee transfer. You can di-
You can make contributions to a Roth IRA for a excess contribution was made. rect the trustee of the traditional IRA to
year at any time during the year or by the due transfer an amount from the traditional IRA
date of your return for that year (not including Applying excess contributions. If contribu- to the trustee of the Roth IRA.
extensions). tions to your Roth IRA for a year were more than
the limit, you can apply the excess contribution • Same trustee transfer. If the trustee of
You can make contributions for 2023 by in one year to a later year if the contributions for the traditional IRA also maintains the Roth
TIP the due date (not including extensions) that later year are less than the maximum al- IRA, you can direct the trustee to transfer
for filing your 2023 tax return. lowed for that year. an amount from the traditional IRA to the
Roth IRA.
What if You Contribute Too Much? Can You Move Amounts Same trustee. Conversions made with the
same trustee can be made by redesignating the
A 6% excise tax applies to any excess contribu- Into a Roth IRA? traditional IRA as a Roth IRA, rather than open-
tion to a Roth IRA. ing a new account or issuing a new contract.
You may be able to convert amounts from either
Excess contributions. These are the contri- a traditional, SEP, or SIMPLE IRA into a Roth Rollover from a qualified retirement plan
butions to your Roth IRAs for a year that equal IRA. You may be able to roll amounts over from into a Roth IRA. You can roll over into a Roth
the total of: a qualified retirement plan to a Roth IRA. You IRA all or part of an eligible rollover distribution
1. Amounts contributed for the tax year to may be able to recharacterize contributions you receive from your (or your deceased spou-
your Roth IRAs (other than amounts prop- made to one IRA as having been made directly se's):
erly and timely rolled over from a Roth IRA to a different IRA. You can roll amounts over • Employer's qualified pension, profit-shar-
or properly converted from a traditional from a designated Roth account or from one ing, or stock bonus plan;
IRA or rolled over from a qualified retire- Roth IRA to another Roth IRA.
ment plan, as described later) that are • Annuity plan;
more than your contribution limit for the Conversions • Tax-sheltered annuity plan (section 403(b)
year; plus plan); or
You can convert a traditional IRA to a Roth IRA.
2. Any excess contributions for the preceding The conversion is treated as a rollover, regard- • Governmental deferred compensation plan
year, reduced by the total of: less of the conversion method used. Most of the (section 457 plan).
rules for rollovers, described earlier under Roll- Any amount rolled over is subject to the same
a. Any distributions out of your Roth
over From One IRA Into Another under Tradi- rules as those for converting a traditional IRA
IRAs for the year, plus
tional IRAs, apply to these rollovers. However, into a Roth IRA. Also, the rollover contribution
b. Your contribution limit for the year mi- the 1-year waiting period doesn't apply. must meet the rollover requirements that apply
nus your contributions to all your IRAs to the specific type of retirement plan.
for the year.

Income. You must include in your gross in- only be made to another designated Roth action from a Roth IRA, you may have to pay the
come distributions from a qualified retirement count or to a Roth IRA. For more information 10% additional tax on early distributions. You
plan that you would have had to include in in- about designated Roth accounts, see Designa- must generally pay the 10% additional tax on
come if you hadn't rolled them over into a Roth ted Roth accounts under Rollovers in Pub. 575. any amount attributable to the part of the
IRA. You don't include in gross income any part amount converted or rolled over (the conversion
of a distribution from a qualified retirement plan or rollover contribution) that you had to include
that is a return of basis (after-tax contributions) Are Distributions Taxable? in income. A separate 5-year period applies to
to the plan that was taxable to you when paid. You don't include in your gross income qualified each conversion and rollover. See Ordering
These amounts are normally included in income distributions or distributions that are a return of rules for distributions, later, to determine the
on your return for the year of the rollover from your regular contributions from your Roth amount, if any, of the distribution that is attribut-
the qualified employer plan to a Roth IRA. IRA(s). You also don't include distributions from able to the part of the conversion or rollover
your Roth IRA that you roll over tax free into an- contribution that you had to include in income.
If you must include any amount in your
gross income, you may have to in- other Roth IRA. You may have to include part of Additional tax on other early distributions.
!
CAUTION crease your withholding or make esti- other distributions in your income. See Ordering Unless an exception applies, you must pay the
mated tax payments. See Pub. 505, Tax With- rules for distributions, later. 10% additional tax on the taxable part of any
holding and Estimated Tax. What are qualified distributions? A qualified distributions that aren't qualified distributions.
distribution is any payment or distribution from See Pub. 590-B for more information.
For more information, see Rollover From
Employer's Plan Into a Roth IRA in chapter 2 of your Roth IRA that meets the following require- Ordering rules for distributions. If you re-
Pub. 590-A. ments. ceive a distribution from your Roth IRA that isn't
1. It is made after the 5-year period begin- a qualified distribution, part of it may be taxable.
Converting from a SIMPLE IRA. Generally,
ning with the first tax year for which a con- There is a set order in which contributions (in-
you can convert an amount in your SIMPLE IRA
to a Roth IRA under the same rules explained tribution was made to a Roth IRA set up cluding conversion contributions and rollover
for your benefit. contributions from qualified retirement plans)
earlier under Converting From Any Traditional
and earnings are considered to be distributed
IRA to a Roth IRA under Traditional IRAs. 2. The payment or distribution is: from your Roth IRA. Regular contributions are
However, you can't convert any amount dis-
a. Made on or after the date you reach distributed first. See Ordering Rules for Distribu-
tributed from the SIMPLE IRA plan during the
age 591/2, tions under Are Distributions Taxable? in chap-
2-year period beginning on the date you first
ter 2 of Pub. 590-B for more information.
participated in any SIMPLE IRA plan main- b. Made because you are disabled,
tained by your employer. Must you withdraw or use Roth IRA assets?
c. Made to a beneficiary or to your es- You aren't required to take distributions from
More information. For more detailed informa- tate after your death, or your Roth IRA at any age. The minimum distri-
tion on conversions, see Can You Move
d. To pay up to $10,000 (lifetime limit) of bution rules that apply to traditional IRAs don't
Amounts Into a Roth IRA? in chapter 2 of Pub.
certain qualified first-time homebuyer apply to Roth IRAs while the owner is alive.
590-A.
amounts. See First home under What However, after the death of a Roth IRA owner,
Acts Result in Penalties or Additional certain minimum distribution rules that apply to
Rollover From a Roth IRA Taxes? in chapter 1 of Pub. 590-B for traditional IRAs also apply to Roth IRAs.
You can withdraw, tax free, all or part of the as- more information. More information. For more detailed informa-
sets from one Roth IRA if you contribute them tion on Roth IRAs, see chapter 2 of Pub. 590-A
Additional tax on distributions of conver-
within 60 days to another Roth IRA. Most of the and Pub. 590-B.
sion and certain rollover contributions
rules for rollovers, explained earlier under Roll-
within 5-year period. If, within the 5-year pe-
over From One IRA Into Another under Tradi-
riod starting with the first day of your tax year in
tional IRAs, apply to these rollovers.
which you convert an amount from a traditional
Rollover from designated Roth account. A IRA or roll over an amount from a qualified re-
rollover from a designated Roth account can tirement plan to a Roth IRA, you take a distribu-

Part Three.
After you have figured your adjusted gross income, you are ready to
Standard subtract the deductions used to figure taxable income. You can subtract
either the standard deduction or itemized deductions, and, if you qualify,
Deduction, the qualified business income deduction. Itemized deductions are
deductions for certain expenses that are listed on Schedule A (Form 1040).
Itemized The three chapters in this part discuss the standard deduction and certain
itemized deductions. See chapter 10 for the factors to consider when
Deductions, and deciding whether to take the standard deduction or itemized deductions.
Other chapters are:
Deductions • Schedule 1, Additional Income and Adjustments to Income;
• Schedule 2 (Part II), Other Taxes; and
• Schedule 3 (Part I), Nonrefundable Credits.
You benefit from the standard deduc- 970 Tax Benefits for Education
970
TIP tion if your standard deduction is more

10. than the total of your allowable itemized
deductions.
Form (and Instructions)
Schedule A (Form 1040) Itemized

Schedule A (Form 1040)
Persons not eligible for the standard de- Deductions

Standard duction. Your standard deduction is zero and
you should itemize any deductions you have if:
Deduction • Your filing status is married filing sepa- Standard Deduction

rately, and your spouse itemizes deduc-
tions on their return;
Amount
• You are filing a tax return for a short tax The standard deduction amount depends on
What's New year because of a change in your annual your filing status, whether you are 65 or older or
accounting period; or blind, and whether another taxpayer can claim
Standard deduction increased. The stand- • You are a nonresident or dual-status alien you as a dependent. Generally, the standard
ard deduction for taxpayers who don't itemize during the year. You are considered a deduction amounts are adjusted each year for
their deductions on Schedule A (Form 1040) dual-status alien if you were both a nonres- inflation. The standard deduction amounts for
has increased. The amount of your standard ident and resident alien during the year. most people are shown in Table 10-1.
deduction depends on your filing status and Decedent's final return. The standard deduc-
If you are a nonresident alien who is married
other factors. Use the 2023 Standard Deduction tion for a decedent's final tax return is the same
to a U.S. citizen or resident alien at the end of
Tables near the end of this chapter to figure as it would have been had the decedent contin-
the year, you can choose to be treated as a U.S.
your standard deduction. ued to live. However, if the decedent wasn't 65
resident. (See Pub. 519.) If you make this
choice, you can take the standard deduction. or older at the time of death, the higher stand-
ard deduction for age can't be claimed.
Introduction If you can be claimed as a dependent
on another person’s return (such as
This chapter discusses the following topics.
!
CAUTION your parents’ return), your standard de- Higher Standard
• How to figure the amount of your standard duction may be limited. See Standard Deduc- Deduction for Age (65 or
tion for Dependents, later.
deduction.
Older)
• The standard deduction for dependents.
• Who should itemize deductions. Useful Items If you are age 65 or older on the last day of the
You may want to see: year and don't itemize deductions, you are enti-
Most taxpayers have a choice of either tak- tled to a higher standard deduction. You are
ing a standard deduction or itemizing their de- considered 65 on the day before your 65th birth-
Publication
ductions. If you have a choice, you can use the day. Therefore, you can take a higher standard
method that gives you the lower tax. 501 Dependents, Standard Deduction, deduction for 2023 if you were born before Jan-
The standard deduction is a dollar amount
501
and Filing Information uary 2, 1959.

that reduces your taxable income. It is a benefit Use Table 10-2 to figure the standard de-
that eliminates the need for many taxpayers to 502 Medical and Dental Expenses
duction amount.
502
itemize actual deductions, such as medical ex-

526 Charitable Contributions Death of a taxpayer. If you are preparing a re-
penses, charitable contributions, and taxes, on
526
Schedule A (Form 1040). The standard deduc- 530 Tax Information for Homeowners turn for someone who died in 2023, read this
tion is higher for taxpayers who: before using Table 10-2 or Table 10-3. Consider
530
547 Casualties, Disasters, and Thefts the taxpayer to be 65 or older at the end of 2023
• Are 65 or older, or only if they were 65 or older at the time of death.
547
• Are blind. 550 Investment Income and Expenses

550
Even if the taxpayer was born before January 2,

936 Home Mortgage Interest Deduction
936
1959, they are not considered 65 or older at the
Publication 17 (2023) Chapter 10 Standard Deduction 93

end of 2023 unless they were 65 or older at the increased standard deduction and how to report your parents' 2023 tax return. You are married
time of death. it on Form 1040 or 1040-SR. filing a separate return. Your spouse doesn't
A person is considered to reach age 65 on itemize deductions. You have $1,500 in interest
income and wages of $3,800 and no itemized
the day before their 65th birthday.
Examples deductions. You find your standard deduction
by using Table 10-3. You enter earned income,
Higher Standard The following examples illustrate how to deter-
$3,800, on line 1. You add lines 1 and 2 and en-
mine your standard deduction using Tables
Deduction for Blindness 10-1 and 10-2.
ter $4,200 ($3,800 + $400) on line 3. On line 5,
you enter $4,200, the larger of lines 3 and 4.
If you are blind on the last day of the year and Because you are married filing a separate re-
Example 1. Hunter, 46, and Avery, 33, are
you don't itemize deductions, you are entitled to turn, you enter $13,850 on line 6. On line 7a,
filing a joint return for 2023. Neither is blind, and
a higher standard deduction. you enter $4,200 as the standard deduction
neither can be claimed as a dependent. They
amount because it is smaller than $13,850, the
Not totally blind. If you aren't totally blind, you decide not to itemize their deductions. They use
amount on line 6.
must get a certified statement from an eye doc- Table 10-1. Their standard deduction is
tor (ophthalmologist or optometrist) that: $27,700.
Example 3. You are single and can be
• You can't see better than 20/200 in the bet- claimed as a dependent on your parents' 2023
Example 2. The facts are the same as in
ter eye with glasses or contact lenses, or tax return. You are 18 years old and blind and
Example 1, except that Hunter is blind at the
have interest income of $1,300, wages of
• Your field of vision is 20 degrees or less. end of 2023. Hunter and Avery use Table 10-2.
$2,900, and no itemized deductions. You use
Their standard deduction is $29,200.
If your eye condition isn't likely to improve Table 10-3 to find the standard deduction
beyond these limits, the statement should in- amount. You enter wages of $2,900 on line 1,
Example 3. Dylan and Dru are filing a joint
clude this fact. Keep the statement in your re- and add lines 1 and 2 and enter $3,300 ($2,900
return for 2023. Both are over age 65. Neither is
cords. + $400) on line 3. On line 5, you enter $3,300,
blind, and neither can be claimed as a depend-
If your vision can be corrected beyond these the larger of lines 3 and 4. Because you are sin-
ent. If they don't itemize deductions, they use
limits only by contact lenses that you can wear gle, you enter $13,850 on line 6 and $3,300 on
Table 10-2. Their standard deduction is
only briefly because of pain, infection, or ulcers, line 7a. This is the smaller of the amounts on
$30,700.
you can take the higher standard deduction for lines 5 and 6. Because you checked one box in
the top part of the worksheet, you enter $1,850
blindness if you otherwise qualify.
Standard Deduction for on line 7b, then add the amounts on lines 7a
Spouse 65 or Older or Dependents and 7b and enter the standard deduction

amount of $5,150 ($3,300 + $1,850) on line 7c.
Blind The standard deduction for an individual who Example 4. You are 18 years old and single
can be claimed as a dependent on another per- and can be claimed as a dependent on your pa-
You can take the higher standard deduction if son's tax return is generally limited to the rents’ 2023 tax return. You have wages of
your spouse is age 65 or older or blind and: greater of: $7,000, interest income of $500, a business
• You file a joint return, or • $1,250, or loss of $3,000, and no itemized deductions. You
• You file a separate return and your spouse use Table 10-3 to figure the standard deduction
• The individual's earned income for the year
had no gross income and can't be claimed amount. You enter $4,000 ($7,000 − $3,000) on
plus $400 (but not more than the regular
as a dependent by another taxpayer. line 1, and add lines 1 and 2 and enter $4,400
standard deduction amount, generally
($4,000 + $400) on line 3. On line 5, you enter
Death of a spouse. If your spouse died in $13,850).
$4,400, the larger of lines 3 and 4, and, be-
2023 before reaching age 65, you can't take a cause you are single, $13,850 on line 6. On
However, if the individual is 65 or older or
higher standard deduction because of your line 7a, you enter $4,400 as the standard de-
blind, the standard deduction may be higher.
spouse. Even if your spouse was born before duction amount because it is smaller than
January 2, 1959, your spouse isn't considered If you (or your spouse, if filing jointly) can be $13,850, the amount on line 6.
65 or older at the end of 2023 unless your claimed as a dependent on someone else's re-
spouse was 65 or older at the time of death.
A person is considered to reach age 65 on
turn, use Table 10-3 to determine your standard
deduction.
Who Should Itemize
the day before their 65th birthday.
Earned income defined. Earned income is You should itemize deductions if your total de-
salaries, wages, tips, professional fees, and ductions are more than your standard deduction
Example. Your spouse was born on Febru-
other amounts received as pay for work you ac- amount. Also, you should itemize if you don't
ary 14, 1958, and died on February 13, 2023.
tually perform. qualify for the standard deduction, as discussed
Your spouse is considered age 65 at the time of
For purposes of the standard deduction, earlier under Persons not eligible for the stand-
death. However, if your spouse died on Febru-
earned income also includes any part of a taxa- ard deduction.
ary 12, 2023, your spouse isn't considered age
65 at the time of death and isn't 65 or older at ble scholarship or fellowship grant. See chap- You should first figure your itemized deduc-
the end of 2023. ter 1 of Pub. 970 for more information on what tions and compare that amount to your standard
qualifies as a scholarship or fellowship grant. deduction to make sure you are using the
You can't claim the higher standard de-
duction for an individual other than method that gives you the greater benefit.
! yourself and your spouse.
Example 1. You are 16 years old and sin-
When to itemize. You may benefit from
CAUTION
gle. Your parents can claim you as a dependent
on their 2023 tax return. You have interest in- itemizing your deductions on Schedule A (Form
come of $780 and wages of $150. You have no 1040) if you:
Higher Standard itemized deductions and use Table 10-3 to find • Don't qualify for the standard deduction,
Deduction for Net Disaster your standard deduction. You enter $150
• Had large uninsured medical and dental
(earned income) on line 1, $550 ($150 + $400)
Loss on line 3, $1,250 (the larger of $550 and expenses during the year,
$1,250) on line 5, and $13,850 on line 6. Your • Paid interest and taxes on your home,
Your standard deduction may be increased by standard deduction, on line 7a, is $1,250 (the
any net qualified disaster loss. smaller of $1,250 and $13,850). • Had large uninsured casualty or theft los-
See the Instructions for Form 1040 and the ses,
Instructions for Schedule A (Form 1040) for Example 2. You are a 22-year-old college • Made large contributions to qualified chari-
more information on how to figure your student and can be claimed as a dependent on ties, or
94 Chapter 10 Standard Deduction Publication 17 (2023)

• Have total itemized deductions that are turn rather than taking the standard deduction. Married persons who filed separate re-
more than the standard deduction to which You may want to do this if, for example, the tax turns. You can change methods of taking de-
you are otherwise entitled. benefit of itemizing your deductions on your ductions only if you and your spouse both make
state tax return is greater than the tax benefit the same changes. Both of you must file a con-
These deductions are explained in chapter 11
you lose on your federal return by not taking the sent to assessment for any additional tax either
and in the publications listed under Useful
standard deduction. To make this election, you one may owe as a result of the change.
Items, earlier.
must check the box on line 18 of Schedule A. You and your spouse can use the method
If you decide to itemize your deductions,
that gives you the lower total tax, even though
complete Schedule A and attach it to your Form Changing your mind. If you don't itemize your
one of you may pay more tax than you would
1040 or 1040-SR. Enter the amount from deductions and later find that you should have
have paid by using the other method. You both
Schedule A, line 17, on Form 1040 or 1040-SR, itemized—or if you itemize your deductions and
must use the same method of claiming deduc-
line 12. later find you shouldn't have—you can change
tions. If one itemizes deductions, the other
your return by filing Form 1040-X, Amended
Electing to itemize for state tax or other should itemize because they won't qualify for
purposes. Even if your itemized deductions U.S. Individual Income Tax Return. See Amen-
the standard deduction. See Persons not eligi-
ded Returns and Claims for Refund in chapter 1
are less than your standard deduction, you can ble for the standard deduction, earlier.
for more information on amended returns.
elect to itemize deductions on your federal re-
Publication 17 (2023) Chapter 10 Standard Deduction 95

2023 Standard Deduction Tables
If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you can't take the standard deduction
!
CAUTION
even if you were born before January 2, 1959, or are blind.
Table 10-1. Standard Deduction Chart for Most People*
IF your filing status is... THEN your standard deduction is...

Single or Married filing separately $13,850
Married filing jointly or Qualifying surviving spouse 27,700
Head of household 20,800
* Don't use this chart if you were born before January 2, 1959, are blind, or if someone else can claim you (or your spouse, if filing jointly) as a dependent. Use Table 10-2 or
10-3 instead.
Table 10-2. Standard Deduction Chart for People Born Before January 2, 1959, or Who Are Blind*
Check the correct number of boxes below. Then go to the chart.

You: Born before January 2, 1959 Blind
Your spouse: Born before January 2, 1959 Blind
Total number of boxes checked

IF AND THEN
your filing status is... the number in the box above is... your standard deduction is...
Single 1 $15,700
2 17,550
Married filing jointly 1 $29,200
2 30,700
3 32,200
4 33,700
Qualifying surviving spouse 1 $29,200
2 30,700
Married filing 1 $15,350
separately** 2 16,850
3 18,350
4 19,850
Head of household 1 $22,650
2 24,500
* If someone else can claim you (or your spouse, if filing jointly) as a dependent, use Table 10-3 instead.
** You can check the boxes for Your Spouse if your filing status is married filing separately and your spouse had no income, isn’t filing a return, and can’t be claimed as a
dependent on another person’s return.
Table 10-3. Standard Deduction Worksheet for Dependents

Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent.
Check the correct number of boxes below. Then go to the worksheet.

You: Born before January 2, 1959 Blind
Your spouse: Born before January 2, 1959 Blind
Total number of boxes checked

1. Enter your earned income (defined below). If none, enter -0-. 1.
2. Additional amount. 2. $400
3. Add lines 1 and 2. 3.
4. Minimum standard deduction. 4. $1,250
5. Enter the larger of line 3 or line 4. 5.
6. Enter the amount shown below for your filing status.

• Single or Married filing separately—$13,850 6.
• Married filing jointly—$27,700
• Head of household—$20,800
7. Standard deduction.
a. Enter the smaller of line 5 or line 6. If born after January 1, 1959, and not blind, stop here. This is your
standard deduction. Otherwise, go on to line 7b. 7a.
b. If born before January 2, 1959, or blind, multiply $1,850 ($1,500 if married) by the number in the box above. 7b.
c. Add lines 7a and 7b. This is your standard deduction for 2023. 7c.
Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any
taxable scholarship or fellowship grant.
96 Chapter 10 Standard Deduction Publication 17 (2023)

Useful Items contributions to state benefit funds) and foreign
You may want to see: income taxes.
Publication State and Local Income

502 Medical and Dental Expenses Taxes
11.
502

You can deduct state and local income taxes.
503
504 Divorced or Separated Individuals

Exception. You can’t deduct state and local in-
504
Taxes 514 Foreign Tax Credit for Individuals

514

come taxes you pay on income that is exempt
from federal income tax, unless the exempt in-
come is interest income. For example, you can’t
525
530 Tax Information for Homeowners deduct the part of a state's income tax that is on
Reminders
530
a cost-of-living allowance exempt from federal

Form (and Instructions) income tax.
Limitation on deduction for state and local Schedule A (Form 1040) Itemized
What To Deduct
taxes. The Tax Cuts and Jobs Act provided for Deductions
a temporary limitation on the deduction for state Schedule C (Form 1040) Profit or Loss Your deduction may be for withheld taxes, esti-
and local taxes. See Limitation on deduction for mated tax payments, or other tax payments as
Schedule C (Form 1040)
From Business (Sole Proprietorship)

state and local taxes, later. follows.
No deduction for foreign taxes paid for real Schedule E (Form 1040) Supplemental Schedule E (Form 1040)
estate. You can no longer deduct foreign taxes Income and Loss Withheld taxes. You can deduct state and lo-
you paid on real estate. cal income taxes withheld from your salary in
Schedule F (Form 1040) Profit or Loss
the year they are withheld. Your Form(s) W-2
Schedule F (Form 1040)
From Farming
will show these amounts. Forms W-2G, 1099-B,
Introduction Schedule SE (Form 1040) Schedule SE (Form 1040)
1099-DIV, 1099-G, 1099-K, 1099-MISC,

Self-Employment Tax 1099-NEC, 1099-OID, and 1099-R may also
This chapter discusses which taxes you can de- show state and local income taxes withheld.
duct if you itemize deductions on Schedule A 1116 Foreign Tax Credit
1116
(Form 1040). It also explains which taxes you Estimated tax payments. You can deduct es-
can deduct on other schedules or forms and timated tax payments you made during the year
Forms.
which taxes you can’t deduct. to a state or local government. However, you
must have a reasonable basis for making the
Tests To Deduct
This chapter covers the following topics.
estimated tax payments. Any estimated state or
• Income taxes (federal, state, local, and for-
eign). Any Tax local tax payments that aren’t made in good
faith at the time of payment aren’t deductible.
• General sales taxes (state and local).
The following two tests must be met for you to Example. You made an estimated state in-
• Real estate taxes (state, local, and for- deduct any tax.
eign). come tax payment. However, the estimate of
• The tax must be imposed on you. your state tax liability shows that you will get a
• Personal property taxes (state and local). refund of the full amount of your estimated pay-
• You must pay the tax during your tax year.
• Taxes and fees you can’t deduct. ment. You had no reasonable basis to believe
The tax must be imposed on you. In gen- you had any additional liability for state income
Use Table 11-1 as a guide to determine
eral, you can deduct only taxes imposed on taxes and you can’t deduct the estimated tax
which taxes you can deduct.
you. payment.
The end of the chapter contains a section
Generally, you can deduct property taxes Refund applied to taxes. You can deduct any
that explains which forms you use to deduct dif-
only if you are an owner of the property. If your part of a refund of prior-year state or local in-
ferent types of taxes.
spouse owns the property and pays the real es- come taxes that you chose to have credited to
Business taxes. You can deduct certain taxes tate taxes, the taxes are deductible on your your 2023 estimated state or local income
only if they are ordinary and necessary expen- spouse's separate return or on your joint return. taxes.
ses of your trade or business or of producing in-
You must pay the tax during your tax year. Don’t reduce your deduction by either of the
come. For information on these taxes, see Busi-
If you are a cash basis taxpayer, you can deduct following items.
ness Expenses in Chapter 8 of Pub. 334.
only those taxes you actually paid during your
• Any state or local income tax refund (or
State or local taxes. These are taxes imposed tax year. If you pay your taxes by check and the credit) you expect to receive for 2023.
by the 50 states, U.S. territories, or any of their check is honored by your financial institution,
political subdivisions (such as a county or city), the day you mail or deliver the check is the date • Any refund of (or credit for) prior-year state
or by the District of Columbia. of payment. If you use a pay-by-phone account and local income taxes you actually re-
(such as a credit card or electronic funds with- ceived in 2023.
Indian tribal government. An Indian tribal
drawal), the date reported on the statement of However, part or all of this refund (or credit)
government recognized by the Secretary of the
the financial institution showing when payment may be taxable. See Refund (or credit) of state
Treasury as performing substantial government
was made is the date of payment. If you contest or local income taxes, later.
functions will be treated as a state for purposes
a tax liability and are a cash basis taxpayer, you
of claiming a deduction for taxes. Income taxes, Separate federal returns. If you and your
can deduct the tax only in the year you actually
real estate taxes, and personal property taxes spouse file separate state, local, and federal in-
pay it (or transfer money or other property to
imposed by that Indian tribal government (or by come tax returns, each of you can deduct on
provide for satisfaction of the contested liabil-
any of its subdivisions that are treated as politi- your federal return only the amount of your own
ity). See Pub. 538 for details.
cal subdivisions of a state) are deductible. state and local income tax that you paid during
If you use an accrual method of accounting,
General sales taxes. These are taxes im- see Pub. 538 for more information. the tax year.
posed at one rate on retail sales of a broad
Joint state and local returns. If you and
range of classes of items.
Income Taxes your spouse file joint state and local returns and
Foreign taxes. These are taxes imposed by a separate federal returns, each of you can de-
foreign country or any of its political subdivi- This section discusses the deductibility of state duct on your separate federal return a part of
sions. and local income taxes (including employee the state and local income taxes paid during the
Publication 17 (2023) Chapter 11 Taxes 97

tax year. You can deduct only the amount of the can’t take a deduction or credit for foreign in- • Nontaxable part of IRA, pension, or annuity
total taxes that is proportionate to your gross income taxes paid on income that is exempt from distributions, excluding rollovers.
come compared to the combined gross income U.S. tax under the foreign earned income exclu-
• Public assistance payments.
of you and your spouse. However, you can’t de- sion or the foreign housing exclusion. For infor-
duct more than the amount you actually paid mation on these exclusions, see Pub. 54, Tax If you lived in different states during the
during the year. You can avoid this calculation if Guide for U.S. Citizens and Resident Aliens same tax year, you must prorate your applicable
you and your spouse are jointly and individually Abroad. For information on the foreign tax table amount for each state based on the days
liable for the full amount of the state and local credit, see Pub. 514. you lived in each state. See the instructions for
income taxes. If so, you and your spouse can Schedule A (Form 1040), line 5a, for details.
deduct on your separate federal returns the
State and Local
amount you each actually paid. State and Local Real
General Sales Taxes
Joint federal return. If you file a joint federal
return, you can deduct the state and local in-
Estate Taxes
You can elect to deduct state and local general
come taxes both of you paid. Deductible real estate taxes are any state and
sales taxes, instead of state and local income
Contributions to state benefit funds. As an taxes, as an itemized deduction on Schedule A local taxes on real property levied for the gen-
employee, you can deduct mandatory contribu- (Form 1040), line 5a. You can use either your eral public welfare. You can deduct these taxes
tions to state benefit funds withheld from your actual expenses or the state and local sales tax only if they are assessed uniformly against all
wages that provide protection against loss of tables to figure your sales tax deduction. property under the jurisdiction of the taxing au-
wages. For example, certain states require em- thority. The proceeds must be for general com-
Actual expenses. Generally, you can deduct munity or governmental purposes and not be a
ployees to make contributions to state funds
the actual state and local general sales taxes payment for a special privilege granted or serv-
providing disability or unemployment insurance
(including compensating use taxes) if the tax ice rendered to you.
benefits. Mandatory payments made to the fol-
rate was the same as the general sales tax rate.
lowing state benefit funds are deductible as
state income taxes on Schedule A (Form 1040), Deductible real estate taxes generally don’t
Food, clothing, and medical supplies.
line 5a. include taxes charged for local benefits and im-
Sales taxes on food, clothing, and medical sup-
provements that increase the value of the prop-
• Alaska Unemployment Compensation plies are deductible as a general sales tax even
erty. They also don’t include itemized charges
Fund. if the tax rate was less than the general sales
for services (such as trash collection) assessed
tax rate.
• California Nonoccupational Disability Ben- against specific property or certain people, even
efit Fund. Motor vehicles. Sales taxes on motor vehi- if the charge is paid to the taxing authority. For
cles are deductible as a general sales tax even more information about taxes and charges that
• New Jersey Nonoccupational Disability
if the tax rate was less than the general sales aren’t deductible, see Real Estate-Related
Benefit Fund.
tax rate. However, if you paid sales tax on a mo- Items You Can’t Deduct, later.
• New Jersey Unemployment Compensation tor vehicle at a rate higher than the general
Fund. Tenant-shareholders in a cooperative hous-
sales tax, you can deduct only the amount of ing corporation. Generally, if you are a ten-
• New York Nonoccupational Disability Ben- the tax that you would have paid at the general ant-stockholder in a cooperative housing corpo-
efit Fund. sales tax rate on that vehicle. Include any state ration, you can deduct the amount paid to the
and local general sales taxes paid for a leased corporation that represents your share of the
• Pennsylvania Unemployment Compensa- motor vehicle. For purposes of this section, mo-
tion Fund. real estate taxes the corporation paid or incur-
tor vehicles include cars, motorcycles, motor red for your dwelling unit. The corporation
• Rhode Island Temporary Disability Benefit homes, recreational vehicles, sport utility vehi- should provide you with a statement showing
Fund. cles, trucks, vans, and off-road vehicles. your share of the taxes. For more information,
• Washington State Supplemental Work- If you use the actual expenses method, see Special Rules for Cooperatives in Pub. 530.
men's Compensation Fund. you must have receipts to show the
! general sales taxes paid.
Division of real estate taxes between buy-
Employee contributions to private or ers and sellers. If you bought or sold real es-
CAUTION
! voluntary disability plans aren’t deduc- tate during the year, the real estate taxes must
CAUTION tible. Trade or business items. Don't include be divided between the buyer and the seller.
sales taxes paid on items used in your trade or The buyer and the seller must divide the real
Refund (or credit) of state or local income business on Schedule A (Form 1040). Instead, estate taxes according to the number of days in
taxes. If you receive a refund of (or credit for) go to the instructions for the form you are using the real property tax year (the period to which
state or local income taxes in a year after the to report business income and expenses to see the tax is imposed relates) that each owned the
year in which you paid them, you may have to if you can deduct these taxes. property. The seller is treated as paying the
include the refund in income on Schedule 1 Optional sales tax tables. Instead of using taxes up to, but not including, the date of sale.
(Form 1040), line 1, in the year you receive it. your actual expenses, you can figure your state The buyer is treated as paying the taxes begin-
This includes refunds resulting from taxes that and local general sales tax deduction using the ning with the date of sale. This applies regard-
were overwithheld, applied from a prior-year re- state and local sales tax tables in the Instruc- less of the lien dates under local law. Generally,
turn, not figured correctly, or figured again be- tions for Schedule A (Form 1040). You may also this information is included on the settlement
cause of an amended return. If you didn’t item- be able to add the state and local general sales statement provided at the closing.
ize your deductions in the previous year, don’t taxes paid on certain specified items. If you (the seller) can’t deduct taxes until
include the refund in income. If you deducted they are paid because you use the cash method
Your applicable table amount is based on
the taxes in the previous year, include all or part of accounting, and the buyer of your property is
the state where you live, your income, and your
of the refund on Schedule 1 (Form 1040), line 1, personally liable for the tax, you are considered
family size. Your income is your adjusted gross
in the year you receive the refund. For a discus- to have paid your part of the tax at the time of
income plus any nontaxable items such as the
sion of how much to include, see Recoveries in the sale. This lets you deduct the part of the tax
following.
Pub. 525, Taxable and Nontaxable Income, for to the date of sale even though you didn’t ac-
more information. • Tax-exempt interest. tually pay it. However, you must also include the
• Veterans’ benefits. amount of that tax in the selling price of the
Foreign Income Taxes • Nontaxable combat pay. property. The buyer must include the same
amount in his or her cost of the property.
Generally, you can take either a deduction or a • Workers’ compensation. You figure your deduction for taxes on each
credit for income taxes imposed on you by a for- • Nontaxable part of social security and rail- property bought or sold during the real property
eign country or a U.S. territory. However, you road retirement benefits. tax year as follows.
98 Chapter 11 Taxes Publication 17 (2023)

3 to December 31, including their date of pur- sale, the seller is entitled to a 2023 tax deduc-
Worksheet 11-1. Figuring chase). They figure their deduction for taxes on tion of $931. This is the sum of the $680 for
their new home as follows. 2022 and the $251 for the 122 days the seller
Your State and Local Real owned the home in 2023. The seller must also
Estate Tax Deduction Worksheet 11-1. Figuring Your include the $931 in the selling price when they
Keep for Your Records State and Local Real Estate Tax figure the gain or loss on the sale. The seller
should contact the Browns in January 2024 to
1. Enter the total state and local real estate Deduction — Taxes on New Home find out how much real estate tax is due for
taxes for the real property tax
year . . . . . . . . . . . . . . . . . . . . 2023.
1. Enter the total state and local real estate
2. Enter the number of days in the real $732
property tax year that you owned the taxes for the real property tax year . . . Form 1099-S. For certain sales or ex-
property . . . . . . . . . . . . . . . . . changes of real estate, the person responsible
2. Enter the number of days in the real
3. Divide line 2 by 365 (for leap years, property tax year that you owned the for closing the sale (generally, the settlement
divide line 2 by 366) . . . . . . . . . . . . 243
property . . . . . . . . . . . . . . . . agent) prepares Form 1099-S, Proceeds From
4. Multiply line 1 by line 3. This is your
3. Divide line 2 by 365 (for leap years, Real Estate Transactions, to report certain infor-
deduction. Enter it on Schedule A (Form
1040), line 5b . . . . . . . . . . . . . . divide line 2 by 366) . . . . . . . . . . 0.6658 mation to the IRS and to the seller of the prop-
Note. Repeat steps 1 through 4 for each property you bought
erty. Box 2 of Form 1099-S is for the gross pro-
4. Multiply line 1 by line 3. This is your
or sold during the real property tax year. Your total deduction is ceeds from the sale and should include the
the sum of the line 4 amounts for all of the properties. deduction. Enter it on Schedule A (Form
1040), line 5b . . . . . . . . . . . . . $487 portion of the seller's real estate tax liability that
the buyer will pay after the date of sale. The
Real estate taxes for prior years. Don’t di- buyer includes these taxes in the cost basis of
Since Dennis and Beth paid all of the taxes on
vide delinquent taxes between the buyer and the property, and the seller both deducts this
the new home, they add $245 ($732 paid less
seller if the taxes are for any real property tax amount as a tax paid and includes it in the sales
$487 deduction) to their cost of the new home.
year before the one in which the property is price of the property.
(The sellers add this $245 to their selling price
sold. Even if the buyer agrees to pay the delin- For a real estate transaction that involves a
and deduct the $245 as a real estate tax.)
quent taxes, the buyer can’t deduct them. The home, any real estate tax the seller paid in ad-
Dennis and Beth's real estate tax deduction
buyer must add them to the cost of the property. vance but that is the liability of the buyer ap-
for their old and new homes is the sum of $214
The seller can deduct these taxes paid by the pears on Form 1099-S, box 6. The buyer de-
and $487, or $701. They will enter this amount
buyer. However, the seller must include them in ducts this amount as a real estate tax, and the
on Schedule A (Form 1040), line 5b.
the selling price. seller reduces their real estate tax deduction (or
Examples. The following examples illustrate Example 2. George and Helen Brown includes it in income) by the same amount. See
how real estate taxes are divided between bought a new home on May 3, 2023. Their real Refund (or rebate), later.
buyer and seller. property tax year for the new home is the calen- Taxes placed in escrow. If your monthly mort-
dar year. Real estate taxes for 2022 were as- gage payment includes an amount placed in es-
Example 1. Dennis and Beth White's real sessed in their state on January 1, 2023. The crow (put in the care of a third party) for real es-
property tax year for both their old home and taxes became due on May 31, 2023, and Octo- tate taxes, you may not be able to deduct the
their new home is the calendar year, with pay- ber 31, 2023. total amount placed in escrow. You can deduct
ment due August 1. The tax on their old home, The Browns agreed to pay all taxes due after only the real estate tax that the third party ac-
sold on May 7, was $620. The tax on their new the date of purchase. Real estate taxes for 2022 tually paid to the taxing authority. If the third
home, bought on May 3, was $732. Dennis and were $680. They paid $340 on May 31, 2023, party doesn’t notify you of the amount of real
Beth are considered to have paid a proportion- and $340 on October 31, 2023. These taxes estate tax that was paid for you, contact the
ate share of the real estate taxes on the old were for the 2022 real property tax year. The third party or the taxing authority to find the
home even though they didn’t actually pay them Browns can’t deduct them since they didn’t own proper amount to show on your return.
to the taxing authority. On the other hand, they the property until 2023. Instead, they must add
can claim only a proportionate share of the $680 to the cost of their new home. Tenants by the entirety. If you and your
taxes they paid on their new property even In January 2024, the Browns receive their spouse held property as tenants by the entirety
though they paid the entire amount. 2023 property tax statement for $752, which and you file separate federal returns, each of
Dennis and Beth owned their old home dur- they will pay in 2024. The Browns owned their you can deduct only the taxes each of you paid
ing the real property tax year for 126 days (Jan- new home during the 2023 real property tax on the property.
uary 1 to May 6, the day before the sale). They year for 243 days (May 3 to December 31).
Divorced individuals. If your divorce or sepa-
figure their deduction for taxes on their old They will figure their 2024 deduction for taxes
ration agreement states that you must pay the
home as follows. as follows.
real estate taxes for a home owned by you and
your spouse, part of your payments may be de-
Worksheet 11-1. Figuring Your Worksheet 11-1. Figuring Your ductible as alimony and part as real estate
State and Local Real Estate Tax State and Local Real Estate Tax taxes. See Payments to a third party in Pub. 504
Deduction — Taxes on Old Home Deduction — Taxes on New Home for more information.
Ministers’ and military housing allowances.
1. Enter the total state and local real estate 1. Enter the total state and local real estate
$620 taxes for the real property tax year . . . $752 If you are a minister or a member of the uni-
taxes for the real property tax year . . .
formed services and receive a housing allow-
2. Enter the number of days in the real 2. Enter the number of days in the real ance that you can exclude from income, you still
property tax year that you owned the property tax year that you owned the
126 243 can deduct all of the real estate taxes you pay
property . . . . . . . . . . . . . . . . property . . . . . . . . . . . . . . . .
on your home.
3. Divide line 2 by 365 (for leap years, 3. Divide line 2 by 365 (for leap years,
divide line 2 by 366) . . . . . . . . . . 0.3452 divide line 2 by 366) . . . . . . . . . . 0.6658 Refund (or rebate). If you received a refund or
rebate in 2023 of real estate taxes you paid in
4. Multiply line 1 by line 3. This is your 4. Multiply line 1 by line 3. This is your
2023, you must reduce your deduction by the
deduction. Enter it on Schedule A (Form deduction. Claim it on Schedule A
1040), line 5b . . . . . . . . . . . . . $214 (Form 1040), line 5b . . . . . . . . . . $501 amount refunded to you. If you received a re-
fund or rebate in 2023 of real estate taxes you
Since the buyers of their old home paid all of The remaining $251 ($752 paid less $501 de- deducted in an earlier year, you generally must
the taxes, Dennis and Beth also include the duction) of taxes paid in 2024, along with the include the refund or rebate in income in the
$214 in the selling price of the old home. (The $680 paid in 2023, is added to the cost of their year you receive it. However, the amount you in-
buyers add the $214 to their cost of the home.) new home. clude in income is limited to the amount of the
Dennis and Beth owned their new home dur- Because the taxes up to the date of sale are deduction that reduced your tax in the earlier
ing the real property tax year for 243 days (May considered paid by the seller on the date of
Publication 17 (2023) Chapter 11 Taxes 99

Table 11-1. Which Taxes Can You Deduct?
Type of Tax You Can Deduct You Can’t Deduct

Fees and Charges Fees and charges that are expenses of your trade or Fees and charges that aren’t expenses of your trade or
business or of producing income. business or of producing income, such as fees for
driver's licenses, car inspections, parking, or
charges for water bills (see Taxes and Fees You
Can’t Deduct).
Fines and penalties.
Income Taxes State and local income taxes. Federal income taxes.
Foreign income taxes. Employee contributions to private or voluntary
disability plans.
Employee contributions to state funds listed under State and local general sales taxes if you choose to
Contributions to state benefit funds. deduct state and local income taxes.
General Sales Taxes State and local general sales taxes, including State and local income taxes if you choose to deduct
compensating use taxes. state and local general sales taxes.
Other Taxes Taxes that are expenses of your trade or business. Federal excise taxes, such as tax on gasoline, that
aren’t expenses of your trade or business or of
producing income.
Taxes on property producing rent or royalty income. Per capita taxes.
One-half of self-employment tax paid.
Personal Property State and local personal property taxes. Customs duties that aren’t expenses of your trade or
Taxes business or of producing income.
Real Estate Taxes State and local real estate taxes. Real estate taxes that are treated as imposed on
someone else (see Division of real estate taxes
between buyers and sellers).
Tenant's share of real estate taxes paid by a Foreign real estate taxes.
cooperative housing corporation.
Taxes for local benefits (with exceptions). See Real
Estate-Related Items You Can’t Deduct.
Trash and garbage pickup fees (with exceptions). See
Real Estate-Related Items You Can’t Deduct.
Rent increase due to higher real estate taxes.
Homeowners' association charges.
year. For more information, see Recoveries in Local benefit taxes are deductible only if • A periodic charge for a residential service
Pub. 525. they are for maintenance, repair, or interest (such as a $20 per month or $240 annual
charges related to those benefits. If only a part fee charged to each homeowner for trash
of the taxes is for maintenance, repair, or inter- collection), or
Real Estate-Related Items est, you must be able to show the amount of
• A flat fee charged for a single service pro-
You Can’t Deduct that part to claim the deduction. If you can’t de- vided by your government (such as a $30
termine what part of the tax is for maintenance, charge for mowing your lawn because it
Payments for the following items generally repair, or interest, none of it is deductible. was allowed to grow higher than permitted
aren’t deductible as real estate taxes.
Taxes for local benefits may be inclu- under your local ordinance).
• Taxes for local benefits. ded in your real estate tax bill. If your
!
CAUTION taxing authority (or mortgage lender)
You must look at your real estate tax bill
• Itemized charges for services (such as to determine if any nondeductible item-
trash and garbage pickup fees). doesn’t furnish you a copy of your real estate !
CAUTION ized charges, such as those listed
tax bill, ask for it. You should use the rules above, are included in the bill. If your taxing au-
• Transfer taxes (or stamp taxes). above to determine if the local benefit tax is de- thority (or mortgage lender) doesn’t furnish you
• Rent increases due to higher real estate ductible. Contact the taxing authority if you a copy of your real estate tax bill, ask for it.
taxes. need additional information about a specific
charge on your real estate tax bill.
• Homeowners' association charges. Exception. Service charges used to main-
tain or improve services (such as trash collec-
Taxes for local benefits. Deductible real es- Itemized charges for services. An itemized tion or police and fire protection) are deductible
tate taxes generally don’t include taxes charged charge for services assessed against specific as real estate taxes if:
for local benefits and improvements tending to property or certain people isn’t a tax, even if the
increase the value of your property. These in- charge is paid to the taxing authority. For exam- • The fees or charges are imposed at a like
clude assessments for streets, sidewalks, water ple, you can’t deduct the charge as a real estate rate against all property in the taxing juris-
mains, sewer lines, public parking facilities, and tax if it is: diction;
similar improvements. You should increase the • The funds collected aren’t earmarked; in-
• A unit fee for the delivery of a service (such
basis of your property by the amount of the as- stead, they are commingled with general
as a $5 fee charged for every 1,000 gallons
sessment. revenue funds; and
of water you use),
100 Chapter 11 Taxes Publication 17 (2023)

• Funds used to maintain or improve serv- the wages of a household worker may be credit against your U.S. income tax on Schedule
ices aren’t limited to or determined by the included in medical expenses that you can 3 (Form 1040), line 1. To claim the credit, you
amount of these fees or charges collected. deduct, or childcare expenses that allow may have to complete and attach Form 1116.
you to claim the child and dependent care For more information, see the Instructions for
Transfer taxes (or stamp taxes). Transfer
credit. For more information, see Pub. 502 Form 1040 or Pub. 514.
taxes and similar taxes and charges on the sale
and Pub. 503.
of a personal home aren’t deductible. If they are Real estate taxes and personal property
paid by the seller, they are expenses of the sale • Estate, inheritance, legacy, or succes- taxes. Real estate and personal property taxes
and reduce the amount realized on the sale. If sion taxes. You can deduct the estate tax are deducted on Schedule A (Form 1040), lines
paid by the buyer, they are included in the cost attributable to income in respect of a dece- 5b and 5c, respectively, unless they are paid on
basis of the property. dent if you, as a beneficiary, must include property used in your business, in which case
that income in your gross income. In that they are deducted on Schedule C (Form 1040)
Rent increase due to higher real estate case, deduct the estate tax on Schedule A or Schedule F (Form 1040). Taxes on property
taxes. If your landlord increases your rent in (Form 1040), line 16. For more information, that produces rent or royalty income are deduc-
the form of a tax surcharge because of in- see Pub. 559. ted on Schedule E (Form 1040).
creased real estate taxes, you can’t deduct the
increase as taxes. • Federal income taxes. This includes in- Self-employment tax. Deduct one-half of your
come taxes withheld from your pay. self-employment tax on Schedule 1 (Form
Homeowners' association charges. These
• Fines and penalties. You can’t deduct 1040), line 15.
charges aren’t deductible because they are im-
posed by the homeowners' association, rather fines and penalties paid to a government Other taxes. All other deductible taxes are de-
than the state or local government. for violation of any law, including related ducted on Schedule A (Form 1040), line 6.
amounts forfeited as collateral deposits.
Personal Property • Foreign personal or real property

taxes.
Taxes • Gift taxes.
Personal property tax is deductible if it is a state • License fees. You can’t deduct license
or local tax that is: fees for personal purposes (such as mar-
riage, driver's, and pet license fees).
12.
• Charged on personal property;
• Per capita taxes. You can’t deduct state
• Based only on the value of the personal
property; and
or local per capita taxes.
Other Itemized
• Charged on a yearly basis, even if it is col- Many taxes and fees other than those listed
lected more or less than once a year. above are also nondeductible, unless they are
ordinary and necessary expenses of a business
Deductions
A tax that meets the above requirements or income-producing activity. For other nonde-
can be considered charged on personal prop- ductible items, see Real Estate-Related Items
erty even if it is for the exercise of a privilege.
For example, a yearly tax based on value quali-
You Can’t Deduct, earlier. What's New
fies as a personal property tax even if it is called
a registration fee and is for the privilege of regis- Where To Deduct Standard mileage rate. The 2023 rate for
tering motor vehicles or using them on the high- business use of a vehicle is 65.5 cents a mile.
You deduct taxes on the following schedules.
ways.
If the tax is partly based on value and partly
State and local income taxes. These taxes
are deducted on Schedule A (Form 1040),
Reminders
based on other criteria, it may qualify in part. line 5a, even if your only source of income is
from business, rents, or royalties. No miscellaneous itemized deductions al-
Example. Your state charges a yearly motor lowed. You can no longer claim any miscella-
vehicle registration tax of 1% of value plus 50 Limitation on deduction for state and lo- neous itemized deductions. Miscellaneous
cents per hundredweight. You paid $32 based cal taxes. The deduction for state and local itemized deductions are those deductions that
on the value ($1,500) and weight (3,400 lbs.) of taxes is limited to $10,000 ($5,000 if married fil- would have been subject to the 2%-of-adjus-
your car. You can deduct $15 (1% × $1,500) as ing married separately). State and local taxes ted-gross-income (AGI) limitation. See Miscella-
a personal property tax because it is based on are the taxes that you include on Schedule A neous Itemized Deductions, later.
the value. The remaining $17 ($0.50 × 34), (Form 1040), lines 5a, 5b, and 5c. Include taxes
based on the weight, isn’t deductible. Fines and penalties. Rules regarding deduct-
imposed by a U.S. territory with your state and
ing fines and penalties have changed. See
local taxes on Schedule A (Form 1040), lines
Taxes and Fees 5a, 5b, and 5c. However, don't include any U.S.
territory taxes you paid that are allocable to ex-
Fines and Penalties, later.
You Can’t Deduct cluded income.

You may want to take a credit for U.S.
Introduction
Many federal, state, and local government taxes
aren’t deductible because they don’t fall within TIP territory tax instead of a deduction. See This chapter explains that you can no longer
the categories discussed earlier. Other taxes the instructions for Schedule 3 (Form claim any miscellaneous itemized deductions,
and fees, such as federal income taxes, aren’t 1040), line 1, for details. unless you fall into one of the qualified catego-
deductible because the tax law specifically pro- ries of employment claiming a deduction relat-
General sales taxes. Sales taxes are deduc- ing to unreimbursed employee expenses. Mis-
hibits a deduction for them. See Table 11-1.
ted on Schedule A (Form 1040), line 5a. You cellaneous itemized deductions are those
Taxes and fees that are generally not deduc- must check the box on line 5a. If you elect to deductions that would have been subject to the
tible include the following items. deduct sales taxes, you can’t deduct state and 2%-of-AGI limitation. You can still claim certain
local income taxes on Schedule A (Form 1040), expenses as itemized deductions on Sched-
• Employment taxes. This includes social line 5a. ule A (Form 1040), Schedule A (Form
security, Medicare, and railroad retirement
1040-NR), or as an adjustment to income on
taxes withheld from your pay. However, Foreign income taxes. Generally, income
Form 1040 or 1040-SR. This chapter covers the
one-half of self-employment tax you pay is taxes you pay to a foreign country or U.S. terri-
following topics.
deductible. In addition, the social security tory can be claimed as an itemized deduction
and other employment taxes you pay on on Schedule A (Form 1040), line 6, or as a • Miscellaneous itemized deductions.
Publication 17 (2023) Chapter 12 Other Itemized Deductions 101
• Expenses you can't deduct. state or local government official, or an em- jointly and both of you were eligible educators,
ployee with impairment-related work expenses. the maximum deduction is $600. However, nei-
• Expenses you can deduct.
ther spouse can deduct more than $300 of their
• How to report your deductions. Armed Forces reservist (member of a re-
qualified expenses. For additional information,
serve component). You are a member of a
You must keep records to verify your see Educator Expenses in Pub. 529, Miscella-
reserve component of the Armed Forces of the
deductions. You should keep receipts, neous Deductions.
United States if you are in the Army, Navy, Ma-
RECORDS canceled checks, substitute checks, fi-
rine Corps, Air Force, or Coast Guard Reserve; Educator expenses include amounts
nancial account statements, and other docu- the Army National Guard of the United States; TIP paid or incurred after March 12, 2020,
mentary evidence. For more information on re- or the Reserve Corps of the Public Health Serv- for personal protective equipment, dis-
cordkeeping, see What Records Should I ice. infectant, and other supplies used for the pre-
Keep? in chapter 1. vention of the spread of coronavirus. For more
Qualified performing artist. You are a
information, see the instructions for Schedule 1
qualified performing artist if you:
(Form 1040), line 11, and Educator Expenses in
Useful Items 1. Performed services in the performing arts Pub. 529, Miscellaneous Deductions.
You may want to see: as an employee for at least two employers
during the tax year,
Publication 2. Received from at least two of the employ-
Expenses You Can’t
463 Travel, Gift, and Car Expenses
463
ers wages of $200 or more per employer, Deduct
525
3. Had allowable business expenses attribut- Because of the suspension of miscellaneous

529 Miscellaneous Deductions able to the performing arts of more than itemized deductions, there are two categories of
10% of gross income from the performing
529
547 Casualties, Disasters, and Thefts expenses you can't deduct: miscellaneous item-
arts, and ized deductions subject to the 2%-of-AGI limita-
547
575 Pension and Annuity Income

4. Had AGI of $16,000 or less before deduct- tion, and those expenses that are traditionally
575
587 Business Use of Your Home

587
ing expenses as a performing artist. nondeductible under the Internal Revenue

946 How To Depreciate Property Code. Both categories of deduction are dis-
Fee-basis state or local government offi- cussed next.
946
Form (and Instructions) cial. You are a qualifying fee-basis official if

you are employed by a state or political subdivi-
Schedule A (Form 1040) Itemized
sion of a state and are compensated, in whole
Miscellaneous Deductions Subject
to 2% AGI
Deductions
or in part, on a fee basis.
2106 Employee Business Expenses Unless you fall into one of the qualified catego-
Employee with impairment-related work
2106
8839 Qualified Adoption Expenses ries of employment under Unreimbursed Em-

expenses. Impairment-related work expenses
ployee Expenses, earlier, miscellaneous item-
8839
Schedule K-1 (Form 1041) Beneficiary's are the allowable expenses of an individual with
ized deductions that are subject to the
Schedule K-1 (Form 1041)
Share of Income, Deductions, physical or mental disabilities for attendant care

2%-of-AGI limitation can no longer be claimed.
Credits, etc. at their place of employment. They also include
For expenses not related to unreimbursed em-
For these and other useful items, go to IRS.gov/ other expenses in connection with the place of
ployee expenses, you generally can't deduct the
Forms. employment that enable the employee to work.
following expenses, even if you fall into one of
See Pub. 463, Travel, Gift, and Car Expenses,
the qualified categories of employment listed
Miscellaneous
for more details.
earlier.
Allowable unreimbursed employee expen-
Itemized Deductions ses. If you qualify as an employee in one of Appraisal Fees
the categories mentioned above, you may be
You can no longer claim any miscellaneous able to deduct the following items as unreim- Appraisal fees you pay to figure a casualty loss
itemized deductions that are subject to the bursed employee expenses. or the fair market value of donated property are
2%-of-AGI limitation, including unreimbursed miscellaneous itemized deductions and can no
Unreimbursed employee expenses for indi-
employee expenses. However, you may be able longer be deducted.
viduals in these categories of employment are
to deduct certain unreimbursed employee busi- deducted as adjustments to gross income.
ness expenses if you fall into one of the follow- Qualified employees listed in one of the catego- Casualty and Theft Losses
ing categories of employment listed under Un- ries above must complete Form 2106, Em- Damaged or stolen property used in performing
reimbursed Employee Expenses next. ployee Business Expenses, to take the deduc- services as an employee is a miscellaneous de-
tion. duction and can no longer be deducted. For
Unreimbursed Employee You can deduct only unreimbursed em-
ployee expenses that are paid or incurred dur-
other casualty and theft losses, see Pub. 547,
Casualties, Disasters, and Thefts.
Expenses ing your tax year, for carrying on your trade or
business of being an employee, and ordinary
You can no longer claim a deduction for unreim-
and necessary.
Clerical Help and Office Rent
bursed employee expenses unless you fall into Office expenses, such as rent and clerical help,
An expense is ordinary if it's common and
one of the following categories of employment. you pay in connection with your investments
accepted in your trade, business, or profession.
• Armed Forces reservists. An expense is necessary if it's appropriate and and collecting taxable income on those invest-
helpful to your business. An expense doesn't ments are miscellaneous itemized deductions
• Qualified performing artists. and are no longer deductible.
have to be required to be considered neces-
• Fee-basis state or local government offi- sary.
cials.
Credit or Debit Card Convenience
• Employees with impairment-related work
expenses. Educator Expenses Fees
The convenience fee charged by the card pro-
If you were an eligible educator in 2023, you cessor for paying your income tax (including es-
Categories of Employment can deduct up to $300 of qualified expenses timated tax payments) by credit or debit card is
you paid in 2023 as an adjustment to gross in- a miscellaneous itemized deduction and is no
You can deduct unreimbursed employee expen- come on Schedule 1 (Form 1040), line 11, longer deductible.
ses only if you qualify as an Armed Forces re- rather than as a miscellaneous itemized
servist, a qualified performing artist, a fee-basis deduction. If you and your spouse are filing
102 Chapter 12 Other Itemized Deductions Publication 17 (2023)

Depreciation on Home Computer Loss on Deposits
If you use your home computer to produce in- For information on whether, and if so, how, you Nondeductible
come (for example, to manage your investments
that produce taxable income), the depreciation
may deduct a loss on your deposit in a qualified
financial institution, see Loss on Deposits in
Expenses
of the computer for that part of the usage of the Pub. 547. In addition to the miscellaneous itemized de-
computer is a miscellaneous itemized deduc- ductions discussed earlier, you can't deduct the
tion and is no longer deductible. Repayments of Income following expenses.
Generally, repayments of amounts that you in-
Fees To Collect Interest and cluded in income in an earlier year is a miscella- List of Nondeductible
Dividends neous itemized deduction and can no longer be
Fees you pay to a broker, bank, trustee, or simi- deducted. If you had to repay more than $3,000 Expenses
lar agent to collect your taxable bond interest or that you included in your income in an earlier • Adoption expenses.
dividends on shares of stock are miscellaneous year, you may be able to deduct the amount.
itemized deductions and can no longer be de- See Repayments Under Claim of Right, later. • Broker's commissions.
ducted. • Burial or funeral expenses, including the
Repayments of Social Security cost of a cemetery lot.
Hobby Expenses Benefits • Campaign expenses.
A hobby isn't a business because it isn't carried For information on how to deduct your repay- • Capital expenses.
on to make a profit. Hobby expenses are mis- ments of certain social security benefits, see
cellaneous itemized deductions and can no lon- Repayments More Than Gross Benefits in
• Check-writing fees.
ger be deducted. chapter 7. • Club dues.
• Commuting expenses.
Indirect Deductions of Safe Deposit Box Rent • Fees and licenses, such as car licenses,
Pass-Through Entities Rent you pay for a safe deposit box you use to marriage licenses, and dog tags.
Pass-through entities include partnerships, S store taxable income-producing stocks, bonds, • Fines or penalties.
corporations, and mutual funds that aren't pub- or investment-related papers is a miscellaneous
licly offered. Deductions of pass-through enti- itemized deduction and can no longer be de- • Health spa expenses.
ties are passed through to the partners or ducted. You also can't deduct the rent if you use • Hobby losses, but see Hobby Expenses,
shareholders. The partner’s or shareholder’s the box for jewelry, other personal items, or earlier.
share of passed-through deductions for invest- tax-exempt securities.
• Home repairs, insurance, and rent.
ment expenses are miscellaneous itemized de-
ductions and can no longer be deducted. Service Charges on Dividend • Home security system.
Reinvestment Plans • Illegal bribes and kickbacks.
Nonpublicly offered mutual funds. These
funds will send you a Form 1099-DIV, Dividends Service charges you pay as a subscriber in a • Investment-related seminars.
and Distributions, or a substitute form, showing dividend reinvestment plan are a miscellaneous • Life insurance premiums paid by the in-
your share of gross income and investment ex- itemized deduction and can no longer be de- sured.
penses. The investment expenses reported on ducted. These service charges include pay-
Form 1099-DIV are a miscellaneous itemized ments for: • Lobbying expenses.
deduction and are no longer deductible. • Holding shares acquired through a plan, • Losses from the sale of your home, furni-
ture, personal car, etc.
• Collecting and reinvesting cash dividends,
Investment Fees and Expenses and • Lost or misplaced cash or property.
Investment fees, custodial fees, trust adminis- • Keeping individual records and providing • Lunches with co-workers.
tration fees, and other expenses you paid for detailed statements of accounts. • Meals while working late.
managing your investments that produce taxa-
ble income are miscellaneous itemized deduc- • Medical expenses as business expenses
tions and are no longer deductible. Tax Preparation Fees other than medical examinations required
Tax preparation fees on the return for the year in by your employer.
Legal Expenses which you pay them are a miscellaneous item- • Personal disability insurance premiums.
ized deduction and can no longer be deducted.
You can usually deduct legal expenses that you These fees include the cost of tax preparation
• Personal legal expenses.
incur in attempting to produce or collect taxable software programs and tax publications. They • Personal, living, or family expenses.
income or that you pay in connection with the also include any fee you paid for electronic filing
determination, collection, or refund of any tax. • Political contributions.
of your return.
Legal expenses that you incur in attempting • Professional accreditation fees.
to produce or collect taxable income, or that you • Professional reputation improvement ex-
pay in connection with the determination, col- Trustee's Administrative Fees for
pense.
lection, or refund of any tax are miscellaneous IRA
itemized deductions and are no longer deducti- Trustee's administrative fees that are billed sep- • Relief fund contributions.
ble. arately and paid by you in connection with your • Residential telephone line.
You can deduct expenses of resolving tax is- IRA are a miscellaneous itemized deduction
• Stockholders’ meeting attendance expen-
sues relating to profit or loss from business re- and can no longer be deducted. For more infor- ses.
ported on Schedule C (Form 1040), Profit or mation about IRAs, see chapter 9.
Loss From Business, from rentals or royalties • Tax-exempt income earning/collecting ex-
reported on Schedule E (Form 1040), Supple- penses.
mental Income and Loss, or from farm income • The value of wages never received or lost
and expenses reported on Schedule F (Form vacation time.
1040), Profit or Loss From Farming, on that
schedule. Expenses for resolving nonbusiness • Travel expenses for another individual.
tax issues are miscellaneous itemized deduc- • Voluntary unemployment benefit fund con-
tions and are no longer deductible. tributions.

• Wristwatches. or penalties include amounts paid such as park- Lost or Mislaid Cash or Property
ing tickets, tax penalties, and penalties deduc-
You can't deduct a loss based on the mere dis-
Adoption Expenses ted from teachers' paychecks after an illegal
appearance of money or property. However, an
strike.
You can't deduct the expenses of adopting a accidental loss or disappearance of property
No deduction is allowed for the restitution can qualify as a casualty if it results from an
child, but you may be able to take a credit for amount or amount paid to come into compli-
those expenses. See the Instructions for Form identifiable event that is sudden, unexpected, or
ance with the law unless the amounts are spe- unusual. See Pub. 547 for more information.
8839, Qualified Adoption Expenses, for more cifically identified in the settlement agreement
information. or court order. Also, any amount paid or incur-
red as reimbursement to the government for the Lunches With Co-Workers
Campaign Expenses costs of any investigation or litigation are not eli- You can't deduct the expenses of lunches with
You can't deduct campaign expenses of a can- gible for the exceptions and are nondeductible. co-workers, except while traveling away from
didate for any office, even if the candidate is home on business. See Pub. 463 for information
running for reelection to the office. These in- Health Spa Expenses on deductible expenses while traveling away
clude qualification and registration fees for pri- from home.
You can't deduct health spa expenses, even if
mary elections. there is a job requirement to stay in excellent
Legal fees. You can't deduct legal fees paid physical condition, such as might be required of Meals While Working Late
to defend charges that arise from participation a law enforcement officer. You can't deduct the cost of meals while work-
in a political campaign. ing late. However, you may be able to claim a
Home Security System deduction if the cost of meals is a deductible
entertainment expense, or if you're traveling
Check-Writing Fees on Personal You can't deduct the cost of a home security away from home. See Pub. 463 for information
Account system as a miscellaneous deduction. How- on deductible entertainment expenses and ex-
If you have a personal checking account, you ever, you may be able to claim a deduction for a penses while traveling away from home.
can't deduct fees charged by the bank for the home security system as a business expense if
privilege of writing checks, even if the account you have a home office. See Security system
under Figuring the Deduction in Pub. 587. Personal Legal Expenses
pays interest.
You can't deduct personal legal expenses such
Investment-Related Seminars as those for the following.
Club Dues
Generally, you can't deduct the cost of member- You can't deduct any expenses for attending a • Custody of children.
ship in any club organized for business, pleas- convention, seminar, or similar meeting for in- • Breach of promise to marry suit.
ure, recreation, or other social purpose. This investment purposes.
• Civil or criminal charges resulting from a
cludes business, social, athletic, luncheon, personal relationship.
sporting, airline, hotel, golf, and country clubs. Life Insurance Premiums
You can't deduct dues paid to an organiza- • Damages for personal injury, except for
You can't deduct premiums you pay on your life certain unlawful discrimination and whis-
tion if one of its main purposes is to: insurance. You may be able to deduct, as ali- tle-blower claims.
• Conduct entertainment activities for mem- mony, premiums you pay on life insurance poli-
bers or their guests, or cies assigned to your former spouse. See Pub. • Preparation of a title (or defense or perfec-
504, Divorced or Separated Individuals, for in- tion of a title).
• Provide members or their guests with ac- formation on alimony.
cess to entertainment facilities. • Preparation of a will.
Dues paid to airline, hotel, and luncheon • Property claims or property settlement in a
Lobbying Expenses divorce.
clubs aren't deductible.
You generally can't deduct amounts paid or in- You can't deduct these expenses even if a
curred for lobbying expenses. These include ex- result of the legal proceeding is the loss of in-
Commuting Expenses penses to: come-producing property.
You can't deduct commuting expenses (the cost
of transportation between your home and your
• Influence legislation;
main or regular place of work). If you haul tools, • Participate or intervene in any political Political Contributions
instruments, or other items in your car to and campaign for, or against, any candidate for You can't deduct contributions made to a politi-
from work, you can deduct only the additional public office; cal candidate, a campaign committee, or a
cost of hauling the items such as the rent on a • Attempt to influence the general public, or newsletter fund. Advertisements in convention
trailer to carry the items. segments of the public, about elections, bulletins and admissions to dinners or programs
legislative matters, or referendums; or that benefit a political party or political candi-
Fines and Penalties date aren't deductible.
• Communicate directly with covered execu-
Generally, no deduction is allowed for fines and tive branch officials in any attempt to influ-
penalties paid to a government or specified ence the official actions or positions of Professional Accreditation Fees
nongovernmental entity for the violation of any those officials. You can't deduct professional accreditation fees
law except in the following situations. such as the following.
Lobbying expenses also include any amounts
• Amounts that constitute restitution. paid or incurred for research, preparation, plan- • Accounting certificate fees paid for the ini-
ning, or coordination of any of these activities. tial right to practice accounting.
• Amounts paid to come into compliance
with the law. Dues used for lobbying. If a tax-exempt • Bar exam fees and incidental expenses in
• Amounts paid or incurred as the result of organization notifies you that part of the dues or securing initial admission to the bar.
certain court orders in which no govern- other amounts you pay to the organization are • Medical and dental license fees paid to get
ment or specified nongovernmental used to pay nondeductible lobbying expenses, initial licensing.
agency is a party. you can't deduct that part. See Lobbying Ex-
penses in Pub. 529 for information on excep-
• Amounts paid or incurred for taxes due. tions. Professional Reputation
Nondeductible amounts include an amount You can't deduct expenses of radio and TV ap-
paid in settlement of your actual or potential lia- pearances to increase your personal prestige or
bility for a fine or penalty (civil or criminal). Fines establish your professional reputation.

Relief Fund Contributions Excess Deductions of an Estate or
You can't deduct contributions paid to a private Expenses You Can Trust
plan that pays benefits to any covered em-
ployee who can't work because of any injury or
Deduct Generally, if an estate or trust has an excess de-
duction resulting from total deductions being
illness not related to the job. You can deduct the items listed below as item- greater than its gross income, in the estate’s or
ized deductions. Report these items on Sched- trust's last tax year, a beneficiary can deduct the
Residential Telephone Service ule A (Form 1040), line 16, or Schedule A (Form excess deductions, depending on its character.
1040-NR), line 7. The excess deductions retain their character as
You can't deduct any charge (including taxes)
an adjustment to arrive at adjusted gross in-
for basic local telephone service for the first tel-
come on Schedule 1 (Form 1040), as a
ephone line to your residence, even if it's used List of Deductions non-miscellaneous itemized deduction reported
in a trade or business.
on Schedule A (Form 1040), or as a miscellane-
Each of the following items is discussed in de-
ous itemized deduction. For more information
tail after the list (except where indicated).
Stockholders' Meetings on excess deductions of an estate or trust, see
You can't deduct transportation and other ex- • Amortizable premium on taxable bonds. the Instructions for Schedule K-1 (Form 1041)
penses you pay to attend stockholders' meet- • Casualty and theft losses from income- for a Beneficiary Filing Form 1040.
ings of companies in which you own stock but producing property.
have no other interest. You can't deduct these
• Excess deductions of an estate or trust. Federal Estate Tax on Income in
expenses even if you're attending the meeting Respect of a Decedent
to get information that would be useful in mak- • Federal estate tax on income in respect of
ing further investments. a decedent. You can deduct the federal estate tax attributa-
ble to income in respect of a decedent that you
• Gambling losses up to the amount of gam- as a beneficiary include in your gross income.
Tax-Exempt Income Expenses bling winnings. Income in respect of the decedent is gross in-
You can't deduct expenses to produce tax-ex- • Impairment-related work expenses of per- come that the decedent would have received
empt income. You can't deduct interest on a sons with disabilities. had death not occurred and that wasn't properly
debt incurred or continued to buy or carry includible in the decedent's final income tax re-
• Losses from Ponzi-type investment turn. See Pub. 559, Survivors, Executors, and
tax-exempt securities. schemes (see Pub. 547 for more informa-
If you have expenses to produce both taxa- Administrators, for more information.
tion).
ble and tax-exempt income, but you can't iden-
tify the expenses that produce each type of in- • Repayments of more than $3,000 under a Gambling Losses up to the
come, you must divide the expenses based on claim of right.
Amount of Gambling Winnings
the amount of each type of income to determine • Unlawful discrimination claims.
the amount that you can deduct. You must report the full amount of your gam-
• Unrecovered investment in an annuity. bling winnings for the year on Schedule 1 (Form
1040), line 8b. You deduct your gambling losses
Travel Expenses for Another for the year on Schedule A (Form 1040), line 16.
Amortizable Premium on Taxable
Individual You can't deduct gambling losses that are more
Bonds
You generally can't deduct travel expenses you than your winnings.
pay or incur for a spouse, dependent, or other In general, if the amount you pay for a bond is
greater than its stated principal amount, the ex- You can't reduce your gambling win-
individual who accompanies you (or your em- nings by your gambling losses and re-
ployee) on business or personal travel unless cess is bond premium. You can elect to amor- !
CAUTION port the difference. You must report the
the spouse, dependent, or other individual is an tize the premium on taxable bonds. The amorti-
zation of the premium is generally an offset to full amount of your winnings as income and
employee of the taxpayer, the travel is for a claim your losses (up to the amount of win-
bona fide business purpose, and such expen- interest income on the bond rather than a sepa-
rate deduction item. nings) as an itemized deduction. Therefore,
ses would otherwise be deductible by the your records should show your winnings sepa-
spouse, dependent, or other individual. See Part of the premium on some bonds may be
an itemized deduction on Schedule A (Form rately from your losses.
Pub. 463 for more information on deductible
travel expenses. 1040). For more information, see Amortizable
Diary of winnings and losses. You
Premium on Taxable Bonds in Pub. 529, and
must keep an accurate diary or similar
Bond Premium Amortization in chapter 3 of
Voluntary Unemployment Pub. 550, Investment Income and Expenses.
RECORDS record of your losses and winnings.
Benefit Fund Contributions Your diary should contain at least the following
You can't deduct voluntary unemployment ben- Casualty and Theft Losses of information.
efit fund contributions you make to a union fund Income-Producing Property
or a private fund. However, you can deduct con- • The date and type of your specific wager or
tributions as taxes if state law requires you to You can deduct a casualty or theft loss as an wagering activity.
make them to a state unemployment fund that itemized deduction on Schedule A (Form 1040), • The name and address or location of the
covers you for the loss of wages from unem- line 16, if the damaged or stolen property was gambling establishment.
ployment caused by business conditions. income-producing property (property held for
investment, such as stocks, notes, bonds, gold, • The names of other persons present with
silver, vacant lots, and works of art). First, report you at the gambling establishment.
Wristwatches the loss in Form 4684, Section B. You may also • The amount(s) you won or lost.
You can't deduct the cost of a wristwatch, even have to include the loss on Form 4797 if you're
See Pub. 529 for more information.
if there is a job requirement that you know the otherwise required to file that form. To figure
correct time to properly perform your duties. your deduction, add all casualty or theft losses
from this type of property included on Form Impairment-Related Work
4684, lines 32 and 38b, or Form 4797, line 18a. Expenses
For more information on casualty and theft los- If you have a physical or mental disability that
ses, see Pub. 547. limits your being employed, or substantially lim-
its one or more of your major life activities, such
as performing manual tasks, walking, speaking,
breathing, learning, and working, you can
deduct your impairment-related work expenses.

Impairment-related work expenses are ordi- amount you repaid or take a credit against your Unrecovered Investment in
nary and necessary business expenses for at- tax. See Repayments in chapter 8 for more in- Annuity
tendant care services at your place of work and formation.
for other expenses in connection with your A retiree who contributed to the cost of an annu-
place of work that are necessary for you to be ity can exclude from income a part of each pay-
Unlawful Discrimination Claims ment received as a tax-free return of the retir-
able to work.
You may be able to deduct, as an adjustment to ee's investment. If the retiree dies before the
Self-employed. If you're self-employed, en- income on Schedule 1 (Form 1040), line 24h, entire investment is recovered tax free, any un-
ter your impairment-related work expenses on attorney fees and court costs for actions settled recovered investment can be deducted on the
the appropriate form (Schedule C (Form 1040), or decided after October 22, 2004, involving a retiree's final income tax return. See Pub. 575,
Schedule E (Form 1040), or Schedule F (Form claim of unlawful discrimination, a claim against Pension and Annuity Income, for more informa-
1040)) used to report your business income and the U.S. Government, or a claim made under tion about the tax treatment of pensions and an-
expenses. section 1862(b)(3)(A) of the Social Security Act. nuities.
However, the amount you can deduct on
Repayments Under Claim of Right Schedule 1 (Form 1040), line 24h, is limited to
the amount of the judgment or settlement you
If you had to repay more than $3,000 that you
are including in income for the tax year. See
included in your income in an earlier year be-
Pub. 525, Taxable and Nontaxable Income, for
cause at the time you thought you had an unre-
more information.
stricted right to it, you may be able to deduct the

Part Four.
The two chapters in this part explain how to figure your tax. They also
Figuring Your discuss tax credits that, unlike deductions, are subtracted directly from your
tax and reduce your tax dollar for dollar.
Taxes, and
Refundable and chapters are:
• Schedule 1, Additional Income and Adjustments to Income;
Nonrefundable
• Schedule 2, Additional Taxes; and
Credits • Schedule 3, Additional Credits and Payments.
Form (and Instructions)

W-2 Wage and Tax Statement
Figuring Your Tax
13.
W-2
Schedule SE (Form 1040) Your income tax is based on your taxable in-
come. After you figure your income tax and
Schedule SE (Form 1040)
Self-Employment Tax
AMT, if any, subtract your tax credits and add
How To Figure Schedule 8812 (Form 1040) Credits for
Qualifying Children and Other
Schedule 8812 (Form 1040)
any other taxes you may owe. The result is your

total tax. Compare your total tax with your total
Dependents payments to determine whether you are entitled
Your Tax 1116 Foreign Tax Credit
1116
to a refund or must make a payment.
3800 General Business Credit
3800
This section provides a general outline of

how to figure your tax. You can find step-by-step
Introduction 4136 Credit for Federal Tax Paid on Fuels
4136
directions in the Instructions for Form 1040.

4970 Tax on Accumulation Distribution of
After you have figured your income and deduc- Tax. Most taxpayers use either the Tax Table or
4970
Trusts
tions, your next step is to figure your tax. This the Tax Computation Worksheet to figure their
chapter discusses: 5329 Additional Taxes on Qualified Plans income tax. However, there are special meth-
ods if your income includes any of the following
5329
(Including IRAs) and Other

• The general steps you take to figure your Tax-Favored Accounts items.
tax,
5405 Repayment of the First-Time • A net capital gain. See Pub. 550.
• An additional tax you may have to pay 5405
Homebuyer Credit • Qualified dividends taxed at the same

called the alternative minimum tax (AMT),
and 5695 Residential Energy Credits
5695
rates as a net capital gain. See Pub. 550.
• The conditions you must meet if you want 5884 Work Opportunity Credit • Lump-sum distributions. See Pub. 575.
the IRS to figure your tax. • Farming or fishing income. See Schedule J
5884
8396 Mortgage Interest Credit

(Form 1040).
8396
Useful Items 8801 Credit for Prior Year Minimum

8801
• Tax for certain children who have unearned

You may want to see: Tax—Individuals, Estates, and Trusts income. See Form 8615.
8835 Renewable Electricity Production • Parent's election to report child's interest
Publication
8835
Credit and dividends. See Form 8814.

503
8839 Qualified Adoption Expenses

8839
• Foreign earned income exclusion or the

505 Tax Withholding and Estimated Tax 8846 Credit for Employer Social Security housing exclusion. (See Form 2555, For-
eign Earned Income, and the Foreign
8846
and Medicare Taxes Paid on Certain

505
524 Credit for the Elderly or the Disabled Employee Tips Earned Income Tax Worksheet in the In-
structions for Form 1040.)
524
525 Taxable and Nontaxable Income 8853 Archer MSAs and Long-Term Care
Credits. After you figure your income tax and
525
8853
531 Reporting Tip Income Insurance Contracts

531
any AMT (discussed later), determine if you are

8880 Credit for Qualified Retirement eligible for any tax credits. Eligibility information
8880
Savings Contributions for these tax credits is discussed in other publi-

550
560 Retirement Plans for Small Business cations and your form instructions. The follow-
8889 Health Savings Accounts (HSAs)
560
(SEP, SIMPLE, and Qualified Plans) ing items are some of the credits you may be
8889
8910 Alternative Motor Vehicle Credit able to subtract from your tax and shows where
575 Pension and Annuity Income
8910
you can find more information on each credit.

8912 Credit to Holders of Tax Credit
575
596 Earned Income Credit (EIC) • Adoption credit. See Form 8839.
8912
596
Bonds
926 Household Employer’s Tax Guide
926
8936 Clean Vehicle Credits • Alternative motor vehicle credit. See Form
8910.
8936
969 Health Savings Accounts and Other 8959 Additional Medicare Tax
• Child and dependent care credit. See Pub.
969
Tax-Favored Health Plans

8959
8960 Net Investment Income 503.

970 Tax Benefits for Education
8960
Tax—Individuals, Estates, and Trusts

• Child tax credit. See Schedule 8812 (Form
970
974 Premium Tax Credit (PTC)

974 8962 Premium Tax Credit (PTC)
8962 1040).
Publication 17 (2023) Chapter 13 How To Figure Your Tax 107

• Credit for employer social security and • Net investment income tax. See Form U.S. savings bonds instead of receiving a paper
Medicare taxes paid on certain employee 8960. check.
tips. See Form 8846.
• Recapture of an education credit. See Pub.
• Credit to holders of tax credit bonds. See 970. Alternative
Minimum Tax (AMT)
Form 8912.
• Recapture of other credits. See the Instruc-
• Education credit. See Pub. 970. tions for Form 1040.
• Elderly or disabled credit. See Pub. 524. • Repayment of first-time homebuyer credit. This section briefly discusses an additional tax
See Form 5405. you may have to pay.
• Foreign tax credit. See Form 1116.
• General business credit. See Form 3800. • Section 72(m)(5) excess benefits tax. See The tax law gives special treatment to some
Pub. 560. kinds of income and allows special deductions
• Mortgage interest credit. See Form 8396. and credits for some kinds of expenses. Tax-
• Self-employment tax. See Schedule SE
• Clean vehicle credits. See Form 8936. (Form 1040). payers who benefit from this special treatment
may have to pay at least a minimum amount of
• Premium tax credit. See Pub. 974. • Social security and Medicare tax on tips. tax through an additional tax called AMT.
• Prior year minimum tax credit. See Form See Pub. 531.
8801. You may have to pay the AMT if your taxable
• Social security and Medicare tax on wa- income for regular tax purposes, combined with
• Renewable electricity production credit. ges. See Pub. 525. certain adjustments and tax preference items, is
See Form 8835. • Tax on accumulation distribution of trusts. more than a certain amount. See Form 6251,
• Residential clean energy credit. See Form See Form 4970. Alternative Minimum Tax—Individuals.
5695. • Tax on golden parachute payments. See Adjustments and tax preference items. The
• Retirement savings contribution credit. See the Instructions for Form 1040. more common adjustments and tax preference
Form 8880. • Uncollected social security and Medicare items include:
• Work opportunity credit. See Form 5884. tax on group-term life insurance. See Form • Addition of the standard deduction (if
W-2. claimed);
Some credits (such as the earned income
credit) aren’t listed because they are treated as • Uncollected social security and Medicare • Addition of itemized deductions claimed for
payments. See Payments, later. tax on tips. See Pub. 531. state and local taxes and certain interest;
Other taxes. After you subtract your tax cred- You may also have to pay AMT (discussed • Subtraction of any refund of state and local
its, determine whether there are any other taxes later in this chapter). taxes included in gross income;
you must pay. This chapter doesn’t explain Payments. After you determine your total tax, • Changes to accelerated depreciation of
these other taxes. You can find that information figure the total payments you have already certain property;
in other publications and your form instructions. made for the year. Include credits that are trea-
See the following list for other taxes you may • Difference between gain or loss on the sale
ted as payments. This chapter doesn’t explain of property reported for regular tax purpo-
need to add to your income tax. these payments and credits. You can find that ses and AMT purposes;
• Additional Medicare tax. See Form 8959. information in other publications and your form
instructions. See the following list of payments • Addition of certain income from incentive
• Additional tax on ABLE accounts. See and credits that you may be able to include in stock options;
Pub. 969.
your total payments. • Change in certain passive activity loss de-
• Additional tax on Archer MSAs and • American opportunity credit. See Pub. 970. ductions;
long-term care insurance contracts. See
Form 8853. • Additional child tax credit. See Schedule • Addition of certain depletion that is more
8812 (Form 1040). than the adjusted basis of the property;
• Additional tax on Coverdell ESAs. See
Form 5329. • Credit for federal tax on fuels. See Form • Addition of part of the deduction for certain
4136. intangible drilling costs; and
• Additional tax on HSAs. See Form 8889.
• Credit for tax on undistributed capital gain. • Addition of tax-exempt interest on certain
• Additional tax on income you received from See the Instructions for Form 1040. private activity bonds.
a nonqualified deferred compensation plan
that fails to meet certain requirements. See • Earned income credit. See Pub. 596. More information. For more information about
the Instructions for Form 1040. the AMT, see the Instructions for Form 6251.
• Estimated tax paid. See Pub. 505.
• Additional tax on qualified plans and other
tax-favored accounts. See Form 5329.
• Excess social security and RRTA tax with-
held. See the Instructions for Form 1040. Tax Figured by the IRS
• Additional tax on qualified retirement plans • Federal income tax withheld. See Pub. If you file by the due date of your return (not
and IRAs. See Form 5329. 505. counting extensions) — April 15, 2024, for most
• Additional tax on qualified tuition pro- • Net premium tax credit. See the Instruc- people — you can have the IRS figure your tax
grams. See Pub. 970. tions for Form 8962 or the Instructions for for you on Form 1040 or 1040-SR.
• Excise tax on insider stock compensation Form 1040. If the IRS figures your tax and you paid too
from an expatriated corporation. See the • Qualified sick and family leave credits. See much, you will receive a refund. If you didn’t pay
Instructions for Form 1040. the Instructions for Form 1040. enough, you will receive a bill for the balance.
• Household employment taxes. See Pub. To avoid interest or the penalty for late payment,
• Tax paid with extension. See the Instruc- you must pay the bill within 30 days of the date
926. tions for Form 1040.
of the bill or by the due date for your return,
• Interest on the deferred tax on gain from Refund or balance due. To determine whichever is later.
certain installment sales with a sales price whether you are entitled to a refund or whether
over $150,000. See the Instructions for The IRS can also figure the credit for the eld-
you must make a payment, compare your total
Form 1040. erly or the disabled and the earned income
payments with your total tax. If you are entitled
credit for you.
• Interest on the tax due on installment in- to a refund, see your form instructions for infor-
come from the sale of certain residential mation on having it directly deposited into one When the IRS cannot figure your tax. The
lots and timeshares. See the Instructions or more of your accounts (including a traditional IRS can’t figure your tax for you if any of the
for Form 1040. IRA, Roth IRA, or a SEP-IRA), or to purchase following apply.
108 Chapter 13 How To Figure Your Tax Publication 17 (2023)

1. You want your refund directly deposited Fill in and attach any schedules and forms on Schedule EIC, line 2, the credit will be re-
into your checking or savings account. asked for on the lines you completed to your pa- duced or disallowed unless the child was born
per return. Attach a copy of each of your Forms and died in 2023.
2. You want any part of your refund applied to
W-2 to your paper return. Also, attach to your If your credit for any year after 1996 was re-
your 2024 estimated tax.
paper return any Form 1099-R you received that duced or disallowed by the IRS, you may also
3. You had income for the year from sources has withholding tax in box 4. have to file Form 8862 with your return. For de-
other than wages, salaries, tips, interest, Mail your return to the Internal Revenue tails, see the Instructions for Form 1040.
dividends, taxable social security benefits, Service Center for the area where you live. A list
unemployment compensation, IRA distri- of Service Center addresses is in the instruc-
butions, pensions, and annuities. tions for your tax return.
4. Your taxable income is $100,000 or more.
5. You itemize deductions.
Form 1040 or 1040-SR Line Entries
6. You file any of the following forms.
If you want the IRS to figure your tax. Read
Form 1040 or 1040-SR, lines 1 through 15, and
14.
a. Form 2555, Foreign Earned Income. Schedule 1 (Form 1040), if applicable. Fill in the
lines that apply to you and attach Schedule 1
b. Form 4137, Social Security and Medi-
care Tax on Unreported Tip Income.
(Form 1040), if applicable. Don’t complete Form
1040 or 1040-SR, line 16 or 17.
Child Tax Credit
c. Form 4970, Tax on Accumulation Dis-
tribution of Trusts.
If you are filing a joint return, use the space
on the dotted line next to the words “Adjusted and Credit for
Gross Income” on the first page of your return to
d. Form 4972, Tax on Lump-Sum Distri-
butions.
separately show your taxable income and your
spouse's taxable income.
Other
Read Form 1040 or 1040-SR, lines 19
e. Form 6198, At-Risk Limitations.
f. Form 6251, Alternative Minimum
through 33, and Schedules 2 and 3 (Form Dependents
1040), if applicable. Fill in the lines that apply to
Tax—Individuals.
you and attach Schedules 2 and 3 (Form 1040),
g. Form 8606, Nondeductible IRAs.
h. Form 8615, Tax for Certain Children
if applicable. Don’t fill in Form 1040 or 1040-SR,
lines 22, 24, 33, or 34 through 38. Don’t fill in What’s New
Schedule 2 (Form 1040), line 1 or 3. Also, don’t
Who Have Unearned Income.
complete Schedule 3 (Form 1040), line 6d, if ACTC amount increased. The maximum
i. Form 8814, Parents' Election To Re- you are completing Schedule R (Form 1040), or amount of ACTC for each qualifying child in-
port Child's Interest and Dividends. Form 1040 or 1040-SR, line 27, if you want the creased to $1,600.
IRS to figure the credits shown on those lines.
j. Form 8839, Qualified Adoption Ex-
penses. Payments. If you have federal income tax with-
held that is shown on Form W-2, box 2; Form
Reminders
k. Form 8853, Archer MSAs and
1099, box 4; Form W-2G, box 4; or another form
Long-Term Care Insurance Contracts. Schedule 8812 (Form 1040). The Schedule
(see the Instructions for Form 1040 for more in-
formation), enter the amount on Form 1040 or 8812 (Form 1040) and its instructions are the
l. Form 8889, Health Savings Accounts
1040-SR, line 25. Enter any estimated tax pay- single source for figuring and reporting the child
(HSAs).
ments you made on Form 1040 or 1040-SR, tax credit, credit for other dependents, and ad-
m. Form 8919, Uncollected Social Secur- ditional child tax credit. The instructions now in-
line 26.
ity and Medicare Tax on Wages. clude all applicable worksheets for figuring
Credit for child and dependent care expen- these credits. As a result, Pub. 972, Child Tax
ses. If you can take this credit, complete Form
Filing the Return 2441 and attach it to your paper return. Enter
Credit, won’t be revised. For prior-year versions
of Pub. 972, go to IRS.gov/Pub972.
After you complete the line entries for the tax the amount of the credit on Schedule 3 (Form
1040), line 2. The IRS will not figure this credit. Abbreviations used throughout this chap-
form you are filing, fill in your name and ad- ter. The following abbreviations will be used in
dress. Enter your social security number in the Net premium tax credit. If you take this credit, this chapter when appropriate.
space provided. If you are married, enter the so- complete Form 8962, Premium Tax Credit
cial security numbers of you and your spouse, (PTC), and attach it to your return. Enter the
• ACTC means additional child tax credit.
even if you file separately. Sign and date your amount of the credit on Schedule 3 (Form • ATIN means adoption taxpayer identifica-
return and enter your occupation(s). If you are 1040), line 9. The IRS will not figure this credit. tion number.
filing a joint return, both you and your spouse
must sign it. Enter your daytime phone number Credit for the elderly or the disabled. If you • CTC means child tax credit.
in the space provided. This may help speed the can take this credit, the IRS can figure it for you. • ITIN means individual taxpayer identifica-
processing of your return if we have a question Enter “CFE” on the line next to Schedule 3 tion number.
that can be answered over the phone. If you are (Form 1040), line 6d, and attach Schedule R
(Form 1040) to your paper return. On Sched- • ODC means credit for other dependents.
filing a joint return, you may enter either your or
your spouse's daytime phone number. ule R (Form 1040), check the box in Part I for • SSN means social security number.
your filing status and age. Complete Parts II and
If you want to allow your preparer, a friend, a
III, lines 11 and 13, if they apply.
• TIN means taxpayer identification number.
family member, or any other person you choose A TIN may be an ATIN, an ITIN, or an SSN.
to discuss your 2023 tax return with the IRS, Earned income credit. If you can take this Other abbreviations may be used in this chapter
check the “Yes” box in the “Third Party Desig- credit, the IRS can figure it for you. Enter “EIC” and will be defined as needed.
nee” area on your return. Also, enter the design- on the dotted line on Form 1040 or 1040-SR,
ee's name, phone number, and any five digits line 27. If you elect to use your nontaxable com- Delayed refund for returns claiming the
the designee chooses as their personal identifi- bat pay in figuring your EIC, enter the amount ACTC. The IRS can’t issue refunds before
cation number (PIN). If you check the “Yes” box, on Form 1040 or 1040-SR, line 1i. mid-February 2024 for returns that properly
you, and your spouse if filing a joint return, are If you have a qualifying child, you must fill in claim the ACTC. This time frame applies to the
authorizing the IRS to call the designee to an- Schedule EIC (Form 1040), Earned Income
swer any questions that may arise during the Credit, and attach it to your paper return. If you
processing of your return. don’t provide the child's social security number
Publication 17 (2023) Chapter 14 Child Tax Credit and Credit for Other Dependents 109
entire refund, not just the portion associated you have a dependent who doesn’t have an 4. The child lived with you for more than half
with the ACTC. SSN, ITIN, or ATIN issued on or before the due of 2023 (see Exceptions to time lived with
date of your 2023 return (including extensions), you, later).
you can’t use that dependent to claim the ODC
Introduction on either your original or amended 2023 tax re-
5. The child is claimed as a dependent on
your return. See chapter 3 for more infor-
turn.
The CTC is a credit that may reduce your tax by mation about claiming someone as a de-
If you apply for an ITIN or ATIN for the dependent.
as much as $2,000 for each child who qualifies pendent on or before the due date of your 2023
you for the credit. See Limits on the CTC and return (including extensions) and the IRS issues 6. The child doesn’t file a joint return for the
ODC, later. the ITIN or ATIN as a result of the application, year (or files it only to claim a refund of
The ACTC is a credit you may be able to the IRS will consider the ITIN or ATIN as issued withheld income tax or estimated tax
take if you are not able to claim the full amount on or before the due date of your return. paid).
of the CTC.
The ODC is a credit that may reduce your 7. The child was a U.S. citizen, U.S. national,
tax by as much as $500 for each eligible de- Improper Claims or U.S. resident alien. For more informa-
pendent. tion, see Pub. 519. If the child was adop-
If you erroneously claim the CTC, ACTC, or ted, see Adopted child, later.
The CTC and the ACTC shouldn’t be ODC, and it is later determined that your error
! confused with the child and dependent was due to reckless or intentional disregard of Example. Your child turned 17 on Decem-
CAUTION care credit discussed in Pub. 503. the CTC, ACTC, or ODC rules, you will not be ber 30, 2023, and is a citizen of the United
allowed to claim any of these credits for 2 years. States and claimed as a dependent on your re-
If it is determined that your error was due to turn. You can't use the child to claim the CTC or
Useful Items fraud, you will not be allowed to claim any of ACTC because the child was not under age 17
You may want to see: these credits for 10 years. You may also have to at the end of 2023.
pay penalties.
Form (and Instructions) If your child is age 17 or older at the
Form 8862 may be required. If your CTC (re- TIP end of 2023, see Credit for Other De-
Schedule 8812 (Form 1040) Credits for
Schedule 8812 (Form 1040)
fundable or nonrefundable depending on the pendents (ODC), later.

Qualifying Children and Other tax year), ACTC, or ODC for a year after 2015
Dependents was denied or reduced for any reason other Adopted child. An adopted child is always
than a math or clerical error, you must attach treated as your own child. An adopted child in-
8862 Information To Claim Certain Credits
Form 8862 to your tax return to claim the CTC, cludes a child lawfully placed with you for legal
8862
After Disallowance
ACTC, or ODC, unless an exception applies. adoption.
For these and other useful items, go to IRS.gov/ See Form 8862, Information To Claim Certain If you are a U.S. citizen or U.S. national and
Forms. Credits After Disallowance, and its instructions your adopted child lived with you all year as a
for more information, including whether an ex- member of your household in 2023, that child
Taxpayer Identification ception applies. meets condition 7, earlier, to be a qualifying
child for the child tax credit (or condition 3, later,
Number Requirements Child Tax Credit (CTC) to be a qualifying person for the ODC).
Exceptions to time lived with you. A child is
You must have a TIN by the due date of your The CTC is for individuals who claim a child as considered to have lived with you for more than
return. If you, or your spouse if filing jointly, a dependent if the child meets additional condi- half of 2023 if the child was born or died in 2023
don’t have an SSN or ITIN issued on or before tions (described later). and your home was this child's home for more
the due date of your 2023 return (including ex-
than half the time the child was alive. Temporary
tensions), you can’t claim the CTC, ODC, or Note. This credit is different from and in ad- absences by you or the child for special circum-
ACTC on either your original or amended 2023 dition to the credit for child and dependent care stances, such as school, vacation, business,
tax return. expenses and the earned income credit that medical care, military service, or detention in a
If you apply for an ITIN on or before the due you may also be eligible to claim. juvenile facility, count as time the child lived with
date of your 2023 return (including extensions) you.
and the IRS issues you an ITIN as a result of the The maximum amount you can claim for the
credit is $2,000 for each child who qualifies you There are also exceptions for kidnapped
application, the IRS will consider your ITIN as
for the CTC. But, see Limits on the CTC and children and children of divorced or separated
issued on or before the due date of your return.
ODC, later. parents. For details, see Residency Test in
Each qualifying child you use for CTC or chapter 3.
ACTC must have the required SSN. If you For more information about claiming the
Qualifying child of more than one person.
have a qualifying child who doesn’t have the re- CTC, see Claiming the CTC and ODC, later.
A special rule applies if your qualifying child is
quired SSN, you can’t use the child to claim the
the qualifying child of more than one person.
CTC or ACTC on either your original or amen-
ded 2023 tax return. The required SSN is one Qualifying Child for the For details, see Qualifying Child of More Than
that is valid for employment and is issued be- CTC One Person in chapter 3.
fore the due date of your 2023 return (including
extensions). A child qualifies you for the CTC if the child Required SSN
If your qualifying child was born and died in meets all of the following conditions.
2023 and you don’t have an SSN for the child, In addition to being a qualifying child for the
1. The child is your son, daughter, stepchild,
attach a copy of the child’s birth certificate, CTC, your child must have the required SSN.
foster child, brother, sister, stepbrother,
death certificate, or hospital records. The docu- The required SSN is one that is valid for em-
stepsister, half brother, half sister, or a de-
ment must show the child was born alive. ployment and that is issued by the Social Se-
scendant of any of them (for example, your
If your qualifying child doesn’t have the re- curity Administration (SSA) before the due date
grandchild, niece, or nephew).
quired SSN but has another type of TIN issued of your 2023 return (including extensions).
on or before the due date of your 2023 return 2. The child was under age 17 at the end of
If your qualifying child does not have
(including extensions), you may be able to claim 2023.
TIP the required SSN, see Credit for Other
the ODC for that child. See Credit for Other De- 3. The child didn’t provide over half the Dependents (ODC), later.
pendents (ODC), later. child’s own support for 2023.
If your child was a U.S. citizen when the
Each dependent you use for the ODC must child received the SSN, the SSN is valid for
have a TIN by the due date of your return. If
110 Chapter 14 Child Tax Credit and Credit for Other Dependents Publication 17 (2023)
employment. If “Not Valid for Employment” is Example. Your sibling’s 10-year-old child • You must file Schedule 8812 (Form 1040).
printed on your child’s social security card and lives in Mexico and qualifies as your dependent.
• You must file Form 8862, if applicable. See
your child’s immigration status has changed so The child is not a U.S. citizen, U.S. national, or Improper Claims, earlier.
that your child is now a U.S. citizen or perma- U.S. resident alien. You can't use this depend-
nent resident, ask the SSA for a new social se- ent to claim the ODC. • You must enter a timely issued TIN on your
curity card without the legend. However, if “Valid tax return for you and your spouse (if filing
You can’t use the same child to claim jointly). See Taxpayer Identification Num-
for Work Only With DHS Authorization” is prin-
! the CTC or ACTC, and the ODC. ber Requirements, earlier.
ted on your child’s social security card, your
child has the required SSN only as long as the • For each qualifying child under 17 for
CAUTION
Department of Homeland Security (DHS) au- whom you are claiming the CTC, you must
thorization is valid. Timely Issued TIN enter the required SSN for the child in col-
If your child doesn’t have the required SSN, umn (2) of the Dependents section of your
you can't use the child to claim the CTC or In addition to being a qualifying person for the tax return and check the Child tax credit
ACTC on either your original or amended 2023 ODC, the person must have an SSN, ITIN, or box in column (4). See Child Tax Credit
tax return. ATIN issued to the dependent on or before the (CTC), earlier.
due date of your 2023 return (including exten-
• For each dependent for whom you are
Credit for Other sions). If the person has not been issued an
SSN, ITIN, or ATIN by that date, you can’t use
claiming the ODC, you must enter the
Dependents (ODC) the person to claim the ODC on either your orig-
timely issued TIN for the dependent in col-
umn (2) of the Dependents section of your
inal or amended 2023 return. For more informa-
tax return and check the Credit for other
This credit is for individuals with a dependent tion, see Taxpayer Identification Number Re-
dependents box in column (4). See Credit
who meets additional conditions (described quirements, earlier.
for Other Dependents (ODC), earlier.
later).
Note. This credit is different from and in ad-

Limits on the CTC and Don't check both the Child tax credit
box and the Credit for other depend-
!
dition to the credit for child and dependent care
expenses that you may also be eligible to claim.
ODC CAUTION ents box for the same person.
The credit amount of your CTC or ODC may be

The maximum amount you can claim for this
credit is $500 for each qualifying dependent. reduced if your modified adjusted gross income Additional Child Tax
See Limits on the CTC and ODC, later. (AGI) is more than the amounts shown below
for your filing status.
Credit (ACTC)
For more information about claiming the
ODC, see Claiming the CTC and ODC, later. • Married filing jointly — $400,000. This credit is for certain individuals who get less
than the full amount of the CTC.
• All other filing statuses — $200,000.
Qualifying Person for the Modified AGI. For purposes of the CTC and
The ODC can’t be used to figure the
ACTC. Only your CTC can be used to
ODC ODC, your modified AGI is the amount on line 3 !
CAUTION figure your ACTC. If you are claiming
of Schedule 8812. the ODC but not the CTC, you can’t claim the
A person qualifies you for the ODC if the person ACTC.
meets all of the following conditions. For more information about limits on the
CTC and ODC, see the Instructions for Sched- Foreign earned income. If you file Form 2555
1. The person is claimed as a dependent on
ule 8812 (Form 1040). (relating to foreign earned income), you can’t
your return. See chapter 3 for more infor-
mation about claiming someone as a de- claim the ACTC.
pendent. Claiming the CTC and Bona fide residents of Puerto Rico. Bona
2. The person can’t be used by you to claim ODC fide residents of Puerto Rico are no longer re-
quired to have three or more qualifying children
the CTC or ACTC. See Child Tax Credit
(CTC), earlier. To claim the CTC or ODC, be sure you meet the to be eligible to claim the ACTC. See Schedule
following requirements. 8812 (Form 1040) and its instructions.
3. The person was a U.S. citizen, U.S. na-
tional, or U.S. resident alien. For more in- • You must file Form 1040, 1040-SR, or How to claim the ACTC. To claim the ACTC,
formation, see Pub. 519. If the person is 1040-NR and include the name and TIN of see Schedule 8812 (Form 1040) and its instruc-
your adopted child, see Adopted child, each dependent for whom you are claiming tions.
earlier. the CTC or ODC.
Publication 17 (2023) Chapter 14 Child Tax Credit and Credit for Other Dependents 111
2023 See the instructions for line 16 to see if you must use the Tax Table
below to figure your tax. Sample Table
Tax Table !
CAUTION
At But
Least Less
Single Married Married Head
filing filing of a
Than jointly* sepa- house-
rately hold
Example. A married couple are filing a joint return. Their taxable income on Form
1040, line 15, is $25,300. First, they find the $25,300–$25,350 taxable income line. Your tax is—
Next, they find the column for married filing jointly and read down the column. The 25,200 25,250 2,807 2,587 2,807 2,713
amount shown where the taxable income line and filing status column meet is 25,250 25,300 2,813 2,593 2,813 2,719
$2,599. This is the tax amount they should enter in the entry space on Form 1040, 25,300 25,350 2,819 2,599 2,819 2,725
line 16. 25,350 25,400 2,825 2,605 2,825 2,731
If line 15 If line 15 If line 15

(taxable And you are— (taxable And you are— (taxable And you are—
income) is— income) is— income) is—
At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of
least less filing filing a least less filing filing a least less filing filing a
than jointly * sepa- house- than jointly * sepa- house- than jointly * sepa- house-
rately hold rately hold rately hold
Your tax is— Your tax is— Your tax is—

0
5
5
15
0
1
0
1
0
1
0
1 1,000 2,000
15 25 2 2 2 2
25 50 4 4 4 4 1,000 1,025 101 101 101 101 2,000 2,025 201 201 201 201
50 75 6 6 6 6 1,025 1,050 104 104 104 104 2,025 2,050 204 204 204 204
1,050 1,075 106 106 106 106 2,050 2,075 206 206 206 206
75 100 9 9 9 9 1,075 1,100 109 109 109 109 2,075 2,100 209 209 209 209
100 125 11 11 11 11 1,100 1,125 111 111 111 111 2,100 2,125 211 211 211 211
125 150 14 14 14 14
150 175 16 16 16 16 1,125 1,150 114 114 114 114 2,125 2,150 214 214 214 214
175 200 19 19 19 19 1,150 1,175 116 116 116 116 2,150 2,175 216 216 216 216
1,175 1,200 119 119 119 119 2,175 2,200 219 219 219 219
200 225 21 21 21 21 1,200 1,225 121 121 121 121 2,200 2,225 221 221 221 221
225 250 24 24 24 24 1,225 1,250 124 124 124 124 2,225 2,250 224 224 224 224
250 275 26 26 26 26
275 300 29 29 29 29 1,250 1,275 126 126 126 126 2,250 2,275 226 226 226 226
300 325 31 31 31 31 1,275 1,300 129 129 129 129 2,275 2,300 229 229 229 229
1,300 1,325 131 131 131 131 2,300 2,325 231 231 231 231
325 350 34 34 34 34 1,325 1,350 134 134 134 134 2,325 2,350 234 234 234 234
350 375 36 36 36 36 1,350 1,375 136 136 136 136 2,350 2,375 236 236 236 236
375 400 39 39 39 39
400 425 41 41 41 41 1,375 1,400 139 139 139 139 2,375 2,400 239 239 239 239
425 450 44 44 44 44 1,400 1,425 141 141 141 141 2,400 2,425 241 241 241 241
1,425 1,450 144 144 144 144 2,425 2,450 244 244 244 244
450 475 46 46 46 46 1,450 1,475 146 146 146 146 2,450 2,475 246 246 246 246
475 500 49 49 49 49 1,475 1,500 149 149 149 149 2,475 2,500 249 249 249 249
500 525 51 51 51 51
525 550 54 54 54 54 1,500 1,525 151 151 151 151 2,500 2,525 251 251 251 251
550 575 56 56 56 56 1,525 1,550 154 154 154 154 2,525 2,550 254 254 254 254
1,550 1,575 156 156 156 156 2,550 2,575 256 256 256 256
575 600 59 59 59 59 1,575 1,600 159 159 159 159 2,575 2,600 259 259 259 259
600 625 61 61 61 61 1,600 1,625 161 161 161 161 2,600 2,625 261 261 261 261
625 650 64 64 64 64
650 675 66 66 66 66 1,625 1,650 164 164 164 164 2,625 2,650 264 264 264 264
675 700 69 69 69 69 1,650 1,675 166 166 166 166 2,650 2,675 266 266 266 266
1,675 1,700 169 169 169 169 2,675 2,700 269 269 269 269
700 725 71 71 71 71 1,700 1,725 171 171 171 171 2,700 2,725 271 271 271 271
725 750 74 74 74 74 1,725 1,750 174 174 174 174 2,725 2,750 274 274 274 274
750 775 76 76 76 76
1,750 1,775 176 176 176 176 2,750 2,775 276 276 276 276
775 800 79 79 79 79
1,775 1,800 179 179 179 179 2,775 2,800 279 279 279 279
800 825 81 81 81 81
1,800 1,825 181 181 181 181 2,800 2,825 281 281 281 281
825 850 84 84 84 84 1,825 1,850 184 184 184 184 2,825 2,850 284 284 284 284
850 875 86 86 86 86 1,850 1,875 186 186 186 186 2,850 2,875 286 286 286 286
875 900 89 89 89 89 1,875 1,900 189 189 189 189 2,875 2,900 289 289 289 289
900 925 91 91 91 91 1,900 1,925 191 191 191 191 2,900 2,925 291 291 291 291
925 950 94 94 94 94 1,925 1,950 194 194 194 194 2,925 2,950 294 294 294 294
950 975 96 96 96 96 1,950 1,975 196 196 196 196 2,950 2,975 296 296 296 296
975 1,000 99 99 99 99 1,975 2,000 199 199 199 199 2,975 3,000 299 299 299 299
(Continued)
* This column must also be used by a qualifying surviving spouse.

2023 Tax Table — Continued

3,000 6,000 9,000

3,000 3,050 303 303 303 303 6,000 6,050 603 603 603 603 9,000 9,050 903 903 903 903
3,050 3,100 308 308 308 308 6,050 6,100 608 608 608 608 9,050 9,100 908 908 908 908
3,100 3,150 313 313 313 313 6,100 6,150 613 613 613 613 9,100 9,150 913 913 913 913
3,150 3,200 318 318 318 318 6,150 6,200 618 618 618 618 9,150 9,200 918 918 918 918
3,200 3,250 323 323 323 323 6,200 6,250 623 623 623 623 9,200 9,250 923 923 923 923
3,250 3,300 328 328 328 328 6,250 6,300 628 628 628 628 9,250 9,300 928 928 928 928
3,300 3,350 333 333 333 333 6,300 6,350 633 633 633 633 9,300 9,350 933 933 933 933
3,350 3,400 338 338 338 338 6,350 6,400 638 638 638 638 9,350 9,400 938 938 938 938
3,400 3,450 343 343 343 343 6,400 6,450 643 643 643 643 9,400 9,450 943 943 943 943
3,450 3,500 348 348 348 348 6,450 6,500 648 648 648 648 9,450 9,500 948 948 948 948
3,500 3,550 353 353 353 353 6,500 6,550 653 653 653 653 9,500 9,550 953 953 953 953
3,550 3,600 358 358 358 358 6,550 6,600 658 658 658 658 9,550 9,600 958 958 958 958
3,600 3,650 363 363 363 363 6,600 6,650 663 663 663 663 9,600 9,650 963 963 963 963
3,650 3,700 368 368 368 368 6,650 6,700 668 668 668 668 9,650 9,700 968 968 968 968
3,700 3,750 373 373 373 373 6,700 6,750 673 673 673 673 9,700 9,750 973 973 973 973
3,750 3,800 378 378 378 378 6,750 6,800 678 678 678 678 9,750 9,800 978 978 978 978
3,800 3,850 383 383 383 383 6,800 6,850 683 683 683 683 9,800 9,850 983 983 983 983
3,850 3,900 388 388 388 388 6,850 6,900 688 688 688 688 9,850 9,900 988 988 988 988
3,900 3,950 393 393 393 393 6,900 6,950 693 693 693 693 9,900 9,950 993 993 993 993
3,950 4,000 398 398 398 398 6,950 7,000 698 698 698 698 9,950 10,000 998 998 998 998
4,000 7,000 10,000

4,000 4,050 403 403 403 403 7,000 7,050 703 703 703 703 10,000 10,050 1,003 1,003 1,003 1,003
4,050 4,100 408 408 408 408 7,050 7,100 708 708 708 708 10,050 10,100 1,008 1,008 1,008 1,008
4,100 4,150 413 413 413 413 7,100 7,150 713 713 713 713 10,100 10,150 1,013 1,013 1,013 1,013
4,150 4,200 418 418 418 418 7,150 7,200 718 718 718 718 10,150 10,200 1,018 1,018 1,018 1,018
4,200 4,250 423 423 423 423 7,200 7,250 723 723 723 723 10,200 10,250 1,023 1,023 1,023 1,023
4,250 4,300 428 428 428 428 7,250 7,300 728 728 728 728 10,250 10,300 1,028 1,028 1,028 1,028
4,300 4,350 433 433 433 433 7,300 7,350 733 733 733 733 10,300 10,350 1,033 1,033 1,033 1,033
4,350 4,400 438 438 438 438 7,350 7,400 738 738 738 738 10,350 10,400 1,038 1,038 1,038 1,038
4,400 4,450 443 443 443 443 7,400 7,450 743 743 743 743 10,400 10,450 1,043 1,043 1,043 1,043
4,450 4,500 448 448 448 448 7,450 7,500 748 748 748 748 10,450 10,500 1,048 1,048 1,048 1,048
4,500 4,550 453 453 453 453 7,500 7,550 753 753 753 753 10,500 10,550 1,053 1,053 1,053 1,053
4,550 4,600 458 458 458 458 7,550 7,600 758 758 758 758 10,550 10,600 1,058 1,058 1,058 1,058
4,600 4,650 463 463 463 463 7,600 7,650 763 763 763 763 10,600 10,650 1,063 1,063 1,063 1,063
4,650 4,700 468 468 468 468 7,650 7,700 768 768 768 768 10,650 10,700 1,068 1,068 1,068 1,068
4,700 4,750 473 473 473 473 7,700 7,750 773 773 773 773 10,700 10,750 1,073 1,073 1,073 1,073
4,750 4,800 478 478 478 478 7,750 7,800 778 778 778 778 10,750 10,800 1,078 1,078 1,078 1,078
4,800 4,850 483 483 483 483 7,800 7,850 783 783 783 783 10,800 10,850 1,083 1,083 1,083 1,083
4,850 4,900 488 488 488 488 7,850 7,900 788 788 788 788 10,850 10,900 1,088 1,088 1,088 1,088
4,900 4,950 493 493 493 493 7,900 7,950 793 793 793 793 10,900 10,950 1,093 1,093 1,093 1,093
4,950 5,000 498 498 498 498 7,950 8,000 798 798 798 798 10,950 11,000 1,098 1,098 1,098 1,098
5,000 8,000 11,000

5,000 5,050 503 503 503 503 8,000 8,050 803 803 803 803 11,000 11,050 1,103 1,103 1,103 1,103
5,050 5,100 508 508 508 508 8,050 8,100 808 808 808 808 11,050 11,100 1,109 1,108 1,109 1,108
5,100 5,150 513 513 513 513 8,100 8,150 813 813 813 813 11,100 11,150 1,115 1,113 1,115 1,113
5,150 5,200 518 518 518 518 8,150 8,200 818 818 818 818 11,150 11,200 1,121 1,118 1,121 1,118
5,200 5,250 523 523 523 523 8,200 8,250 823 823 823 823 11,200 11,250 1,127 1,123 1,127 1,123
5,250 5,300 528 528 528 528 8,250 8,300 828 828 828 828 11,250 11,300 1,133 1,128 1,133 1,128
5,300 5,350 533 533 533 533 8,300 8,350 833 833 833 833 11,300 11,350 1,139 1,133 1,139 1,133
5,350 5,400 538 538 538 538 8,350 8,400 838 838 838 838 11,350 11,400 1,145 1,138 1,145 1,138
5,400 5,450 543 543 543 543 8,400 8,450 843 843 843 843 11,400 11,450 1,151 1,143 1,151 1,143
5,450 5,500 548 548 548 548 8,450 8,500 848 848 848 848 11,450 11,500 1,157 1,148 1,157 1,148
5,500 5,550 553 553 553 553 8,500 8,550 853 853 853 853 11,500 11,550 1,163 1,153 1,163 1,153
5,550 5,600 558 558 558 558 8,550 8,600 858 858 858 858 11,550 11,600 1,169 1,158 1,169 1,158
5,600 5,650 563 563 563 563 8,600 8,650 863 863 863 863 11,600 11,650 1,175 1,163 1,175 1,163
5,650 5,700 568 568 568 568 8,650 8,700 868 868 868 868 11,650 11,700 1,181 1,168 1,181 1,168
5,700 5,750 573 573 573 573 8,700 8,750 873 873 873 873 11,700 11,750 1,187 1,173 1,187 1,173
5,750 5,800 578 578 578 578 8,750 8,800 878 878 878 878 11,750 11,800 1,193 1,178 1,193 1,178
5,800 5,850 583 583 583 583 8,800 8,850 883 883 883 883 11,800 11,850 1,199 1,183 1,199 1,183
5,850 5,900 588 588 588 588 8,850 8,900 888 888 888 888 11,850 11,900 1,205 1,188 1,205 1,188
5,900 5,950 593 593 593 593 8,900 8,950 893 893 893 893 11,900 11,950 1,211 1,193 1,211 1,193
5,950 6,000 598 598 598 598 8,950 9,000 898 898 898 898 11,950 12,000 1,217 1,198 1,217 1,198
(Continued)


12,000 15,000 18,000

12,000 12,050 1,223 1,203 1,223 1,203 15,000 15,050 1,583 1,503 1,583 1,503 18,000 18,050 1,943 1,803 1,943 1,849
12,050 12,100 1,229 1,208 1,229 1,208 15,050 15,100 1,589 1,508 1,589 1,508 18,050 18,100 1,949 1,808 1,949 1,855
12,100 12,150 1,235 1,213 1,235 1,213 15,100 15,150 1,595 1,513 1,595 1,513 18,100 18,150 1,955 1,813 1,955 1,861
12,150 12,200 1,241 1,218 1,241 1,218 15,150 15,200 1,601 1,518 1,601 1,518 18,150 18,200 1,961 1,818 1,961 1,867
12,200 12,250 1,247 1,223 1,247 1,223 15,200 15,250 1,607 1,523 1,607 1,523 18,200 18,250 1,967 1,823 1,967 1,873
12,250 12,300 1,253 1,228 1,253 1,228 15,250 15,300 1,613 1,528 1,613 1,528 18,250 18,300 1,973 1,828 1,973 1,879
12,300 12,350 1,259 1,233 1,259 1,233 15,300 15,350 1,619 1,533 1,619 1,533 18,300 18,350 1,979 1,833 1,979 1,885
12,350 12,400 1,265 1,238 1,265 1,238 15,350 15,400 1,625 1,538 1,625 1,538 18,350 18,400 1,985 1,838 1,985 1,891
12,400 12,450 1,271 1,243 1,271 1,243 15,400 15,450 1,631 1,543 1,631 1,543 18,400 18,450 1,991 1,843 1,991 1,897
12,450 12,500 1,277 1,248 1,277 1,248 15,450 15,500 1,637 1,548 1,637 1,548 18,450 18,500 1,997 1,848 1,997 1,903
12,500 12,550 1,283 1,253 1,283 1,253 15,500 15,550 1,643 1,553 1,643 1,553 18,500 18,550 2,003 1,853 2,003 1,909
12,550 12,600 1,289 1,258 1,289 1,258 15,550 15,600 1,649 1,558 1,649 1,558 18,550 18,600 2,009 1,858 2,009 1,915
12,600 12,650 1,295 1,263 1,295 1,263 15,600 15,650 1,655 1,563 1,655 1,563 18,600 18,650 2,015 1,863 2,015 1,921
12,650 12,700 1,301 1,268 1,301 1,268 15,650 15,700 1,661 1,568 1,661 1,568 18,650 18,700 2,021 1,868 2,021 1,927
12,700 12,750 1,307 1,273 1,307 1,273 15,700 15,750 1,667 1,573 1,667 1,573 18,700 18,750 2,027 1,873 2,027 1,933
12,750 12,800 1,313 1,278 1,313 1,278 15,750 15,800 1,673 1,578 1,673 1,579 18,750 18,800 2,033 1,878 2,033 1,939
12,800 12,850 1,319 1,283 1,319 1,283 15,800 15,850 1,679 1,583 1,679 1,585 18,800 18,850 2,039 1,883 2,039 1,945
12,850 12,900 1,325 1,288 1,325 1,288 15,850 15,900 1,685 1,588 1,685 1,591 18,850 18,900 2,045 1,888 2,045 1,951
12,900 12,950 1,331 1,293 1,331 1,293 15,900 15,950 1,691 1,593 1,691 1,597 18,900 18,950 2,051 1,893 2,051 1,957
12,950 13,000 1,337 1,298 1,337 1,298 15,950 16,000 1,697 1,598 1,697 1,603 18,950 19,000 2,057 1,898 2,057 1,963
13,000 16,000 19,000

13,000 13,050 1,343 1,303 1,343 1,303 16,000 16,050 1,703 1,603 1,703 1,609 19,000 19,050 2,063 1,903 2,063 1,969
13,050 13,100 1,349 1,308 1,349 1,308 16,050 16,100 1,709 1,608 1,709 1,615 19,050 19,100 2,069 1,908 2,069 1,975
13,100 13,150 1,355 1,313 1,355 1,313 16,100 16,150 1,715 1,613 1,715 1,621 19,100 19,150 2,075 1,913 2,075 1,981
13,150 13,200 1,361 1,318 1,361 1,318 16,150 16,200 1,721 1,618 1,721 1,627 19,150 19,200 2,081 1,918 2,081 1,987
13,200 13,250 1,367 1,323 1,367 1,323 16,200 16,250 1,727 1,623 1,727 1,633 19,200 19,250 2,087 1,923 2,087 1,993
13,250 13,300 1,373 1,328 1,373 1,328 16,250 16,300 1,733 1,628 1,733 1,639 19,250 19,300 2,093 1,928 2,093 1,999
13,300 13,350 1,379 1,333 1,379 1,333 16,300 16,350 1,739 1,633 1,739 1,645 19,300 19,350 2,099 1,933 2,099 2,005
13,350 13,400 1,385 1,338 1,385 1,338 16,350 16,400 1,745 1,638 1,745 1,651 19,350 19,400 2,105 1,938 2,105 2,011
13,400 13,450 1,391 1,343 1,391 1,343 16,400 16,450 1,751 1,643 1,751 1,657 19,400 19,450 2,111 1,943 2,111 2,017
13,450 13,500 1,397 1,348 1,397 1,348 16,450 16,500 1,757 1,648 1,757 1,663 19,450 19,500 2,117 1,948 2,117 2,023
13,500 13,550 1,403 1,353 1,403 1,353 16,500 16,550 1,763 1,653 1,763 1,669 19,500 19,550 2,123 1,953 2,123 2,029
13,550 13,600 1,409 1,358 1,409 1,358 16,550 16,600 1,769 1,658 1,769 1,675 19,550 19,600 2,129 1,958 2,129 2,035
13,600 13,650 1,415 1,363 1,415 1,363 16,600 16,650 1,775 1,663 1,775 1,681 19,600 19,650 2,135 1,963 2,135 2,041
13,650 13,700 1,421 1,368 1,421 1,368 16,650 16,700 1,781 1,668 1,781 1,687 19,650 19,700 2,141 1,968 2,141 2,047
13,700 13,750 1,427 1,373 1,427 1,373 16,700 16,750 1,787 1,673 1,787 1,693 19,700 19,750 2,147 1,973 2,147 2,053
13,750 13,800 1,433 1,378 1,433 1,378 16,750 16,800 1,793 1,678 1,793 1,699 19,750 19,800 2,153 1,978 2,153 2,059
13,800 13,850 1,439 1,383 1,439 1,383 16,800 16,850 1,799 1,683 1,799 1,705 19,800 19,850 2,159 1,983 2,159 2,065
13,850 13,900 1,445 1,388 1,445 1,388 16,850 16,900 1,805 1,688 1,805 1,711 19,850 19,900 2,165 1,988 2,165 2,071
13,900 13,950 1,451 1,393 1,451 1,393 16,900 16,950 1,811 1,693 1,811 1,717 19,900 19,950 2,171 1,993 2,171 2,077
13,950 14,000 1,457 1,398 1,457 1,398 16,950 17,000 1,817 1,698 1,817 1,723 19,950 20,000 2,177 1,998 2,177 2,083
14,000 17,000 20,000

14,000 14,050 1,463 1,403 1,463 1,403 17,000 17,050 1,823 1,703 1,823 1,729 20,000 20,050 2,183 2,003 2,183 2,089
14,050 14,100 1,469 1,408 1,469 1,408 17,050 17,100 1,829 1,708 1,829 1,735 20,050 20,100 2,189 2,008 2,189 2,095
14,100 14,150 1,475 1,413 1,475 1,413 17,100 17,150 1,835 1,713 1,835 1,741 20,100 20,150 2,195 2,013 2,195 2,101
14,150 14,200 1,481 1,418 1,481 1,418 17,150 17,200 1,841 1,718 1,841 1,747 20,150 20,200 2,201 2,018 2,201 2,107
14,200 14,250 1,487 1,423 1,487 1,423 17,200 17,250 1,847 1,723 1,847 1,753 20,200 20,250 2,207 2,023 2,207 2,113
14,250 14,300 1,493 1,428 1,493 1,428 17,250 17,300 1,853 1,728 1,853 1,759 20,250 20,300 2,213 2,028 2,213 2,119
14,300 14,350 1,499 1,433 1,499 1,433 17,300 17,350 1,859 1,733 1,859 1,765 20,300 20,350 2,219 2,033 2,219 2,125
14,350 14,400 1,505 1,438 1,505 1,438 17,350 17,400 1,865 1,738 1,865 1,771 20,350 20,400 2,225 2,038 2,225 2,131
14,400 14,450 1,511 1,443 1,511 1,443 17,400 17,450 1,871 1,743 1,871 1,777 20,400 20,450 2,231 2,043 2,231 2,137
14,450 14,500 1,517 1,448 1,517 1,448 17,450 17,500 1,877 1,748 1,877 1,783 20,450 20,500 2,237 2,048 2,237 2,143
14,500 14,550 1,523 1,453 1,523 1,453 17,500 17,550 1,883 1,753 1,883 1,789 20,500 20,550 2,243 2,053 2,243 2,149
14,550 14,600 1,529 1,458 1,529 1,458 17,550 17,600 1,889 1,758 1,889 1,795 20,550 20,600 2,249 2,058 2,249 2,155
14,600 14,650 1,535 1,463 1,535 1,463 17,600 17,650 1,895 1,763 1,895 1,801 20,600 20,650 2,255 2,063 2,255 2,161
14,650 14,700 1,541 1,468 1,541 1,468 17,650 17,700 1,901 1,768 1,901 1,807 20,650 20,700 2,261 2,068 2,261 2,167
14,700 14,750 1,547 1,473 1,547 1,473 17,700 17,750 1,907 1,773 1,907 1,813 20,700 20,750 2,267 2,073 2,267 2,173
14,750 14,800 1,553 1,478 1,553 1,478 17,750 17,800 1,913 1,778 1,913 1,819 20,750 20,800 2,273 2,078 2,273 2,179
14,800 14,850 1,559 1,483 1,559 1,483 17,800 17,850 1,919 1,783 1,919 1,825 20,800 20,850 2,279 2,083 2,279 2,185
14,850 14,900 1,565 1,488 1,565 1,488 17,850 17,900 1,925 1,788 1,925 1,831 20,850 20,900 2,285 2,088 2,285 2,191
14,900 14,950 1,571 1,493 1,571 1,493 17,900 17,950 1,931 1,793 1,931 1,837 20,900 20,950 2,291 2,093 2,291 2,197
14,950 15,000 1,577 1,498 1,577 1,498 17,950 18,000 1,937 1,798 1,937 1,843 20,950 21,000 2,297 2,098 2,297 2,203
(Continued)


21,000 24,000 27,000

21,000 21,050 2,303 2,103 2,303 2,209 24,000 24,050 2,663 2,443 2,663 2,569 27,000 27,050 3,023 2,803 3,023 2,929
21,050 21,100 2,309 2,108 2,309 2,215 24,050 24,100 2,669 2,449 2,669 2,575 27,050 27,100 3,029 2,809 3,029 2,935
21,100 21,150 2,315 2,113 2,315 2,221 24,100 24,150 2,675 2,455 2,675 2,581 27,100 27,150 3,035 2,815 3,035 2,941
21,150 21,200 2,321 2,118 2,321 2,227 24,150 24,200 2,681 2,461 2,681 2,587 27,150 27,200 3,041 2,821 3,041 2,947
21,200 21,250 2,327 2,123 2,327 2,233 24,200 24,250 2,687 2,467 2,687 2,593 27,200 27,250 3,047 2,827 3,047 2,953
21,250 21,300 2,333 2,128 2,333 2,239 24,250 24,300 2,693 2,473 2,693 2,599 27,250 27,300 3,053 2,833 3,053 2,959
21,300 21,350 2,339 2,133 2,339 2,245 24,300 24,350 2,699 2,479 2,699 2,605 27,300 27,350 3,059 2,839 3,059 2,965
21,350 21,400 2,345 2,138 2,345 2,251 24,350 24,400 2,705 2,485 2,705 2,611 27,350 27,400 3,065 2,845 3,065 2,971
21,400 21,450 2,351 2,143 2,351 2,257 24,400 24,450 2,711 2,491 2,711 2,617 27,400 27,450 3,071 2,851 3,071 2,977
21,450 21,500 2,357 2,148 2,357 2,263 24,450 24,500 2,717 2,497 2,717 2,623 27,450 27,500 3,077 2,857 3,077 2,983
21,500 21,550 2,363 2,153 2,363 2,269 24,500 24,550 2,723 2,503 2,723 2,629 27,500 27,550 3,083 2,863 3,083 2,989
21,550 21,600 2,369 2,158 2,369 2,275 24,550 24,600 2,729 2,509 2,729 2,635 27,550 27,600 3,089 2,869 3,089 2,995
21,600 21,650 2,375 2,163 2,375 2,281 24,600 24,650 2,735 2,515 2,735 2,641 27,600 27,650 3,095 2,875 3,095 3,001
21,650 21,700 2,381 2,168 2,381 2,287 24,650 24,700 2,741 2,521 2,741 2,647 27,650 27,700 3,101 2,881 3,101 3,007
21,700 21,750 2,387 2,173 2,387 2,293 24,700 24,750 2,747 2,527 2,747 2,653 27,700 27,750 3,107 2,887 3,107 3,013
21,750 21,800 2,393 2,178 2,393 2,299 24,750 24,800 2,753 2,533 2,753 2,659 27,750 27,800 3,113 2,893 3,113 3,019
21,800 21,850 2,399 2,183 2,399 2,305 24,800 24,850 2,759 2,539 2,759 2,665 27,800 27,850 3,119 2,899 3,119 3,025
21,850 21,900 2,405 2,188 2,405 2,311 24,850 24,900 2,765 2,545 2,765 2,671 27,850 27,900 3,125 2,905 3,125 3,031
21,900 21,950 2,411 2,193 2,411 2,317 24,900 24,950 2,771 2,551 2,771 2,677 27,900 27,950 3,131 2,911 3,131 3,037
21,950 22,000 2,417 2,198 2,417 2,323 24,950 25,000 2,777 2,557 2,777 2,683 27,950 28,000 3,137 2,917 3,137 3,043
22,000 25,000 28,000

22,000 22,050 2,423 2,203 2,423 2,329 25,000 25,050 2,783 2,563 2,783 2,689 28,000 28,050 3,143 2,923 3,143 3,049
22,050 22,100 2,429 2,209 2,429 2,335 25,050 25,100 2,789 2,569 2,789 2,695 28,050 28,100 3,149 2,929 3,149 3,055
22,100 22,150 2,435 2,215 2,435 2,341 25,100 25,150 2,795 2,575 2,795 2,701 28,100 28,150 3,155 2,935 3,155 3,061
22,150 22,200 2,441 2,221 2,441 2,347 25,150 25,200 2,801 2,581 2,801 2,707 28,150 28,200 3,161 2,941 3,161 3,067
22,200 22,250 2,447 2,227 2,447 2,353 25,200 25,250 2,807 2,587 2,807 2,713 28,200 28,250 3,167 2,947 3,167 3,073
22,250 22,300 2,453 2,233 2,453 2,359 25,250 25,300 2,813 2,593 2,813 2,719 28,250 28,300 3,173 2,953 3,173 3,079
22,300 22,350 2,459 2,239 2,459 2,365 25,300 25,350 2,819 2,599 2,819 2,725 28,300 28,350 3,179 2,959 3,179 3,085
22,350 22,400 2,465 2,245 2,465 2,371 25,350 25,400 2,825 2,605 2,825 2,731 28,350 28,400 3,185 2,965 3,185 3,091
22,400 22,450 2,471 2,251 2,471 2,377 25,400 25,450 2,831 2,611 2,831 2,737 28,400 28,450 3,191 2,971 3,191 3,097
22,450 22,500 2,477 2,257 2,477 2,383 25,450 25,500 2,837 2,617 2,837 2,743 28,450 28,500 3,197 2,977 3,197 3,103
22,500 22,550 2,483 2,263 2,483 2,389 25,500 25,550 2,843 2,623 2,843 2,749 28,500 28,550 3,203 2,983 3,203 3,109
22,550 22,600 2,489 2,269 2,489 2,395 25,550 25,600 2,849 2,629 2,849 2,755 28,550 28,600 3,209 2,989 3,209 3,115
22,600 22,650 2,495 2,275 2,495 2,401 25,600 25,650 2,855 2,635 2,855 2,761 28,600 28,650 3,215 2,995 3,215 3,121
22,650 22,700 2,501 2,281 2,501 2,407 25,650 25,700 2,861 2,641 2,861 2,767 28,650 28,700 3,221 3,001 3,221 3,127
22,700 22,750 2,507 2,287 2,507 2,413 25,700 25,750 2,867 2,647 2,867 2,773 28,700 28,750 3,227 3,007 3,227 3,133
22,750 22,800 2,513 2,293 2,513 2,419 25,750 25,800 2,873 2,653 2,873 2,779 28,750 28,800 3,233 3,013 3,233 3,139
22,800 22,850 2,519 2,299 2,519 2,425 25,800 25,850 2,879 2,659 2,879 2,785 28,800 28,850 3,239 3,019 3,239 3,145
22,850 22,900 2,525 2,305 2,525 2,431 25,850 25,900 2,885 2,665 2,885 2,791 28,850 28,900 3,245 3,025 3,245 3,151
22,900 22,950 2,531 2,311 2,531 2,437 25,900 25,950 2,891 2,671 2,891 2,797 28,900 28,950 3,251 3,031 3,251 3,157
22,950 23,000 2,537 2,317 2,537 2,443 25,950 26,000 2,897 2,677 2,897 2,803 28,950 29,000 3,257 3,037 3,257 3,163
23,000 26,000 29,000

23,000 23,050 2,543 2,323 2,543 2,449 26,000 26,050 2,903 2,683 2,903 2,809 29,000 29,050 3,263 3,043 3,263 3,169
23,050 23,100 2,549 2,329 2,549 2,455 26,050 26,100 2,909 2,689 2,909 2,815 29,050 29,100 3,269 3,049 3,269 3,175
23,100 23,150 2,555 2,335 2,555 2,461 26,100 26,150 2,915 2,695 2,915 2,821 29,100 29,150 3,275 3,055 3,275 3,181
23,150 23,200 2,561 2,341 2,561 2,467 26,150 26,200 2,921 2,701 2,921 2,827 29,150 29,200 3,281 3,061 3,281 3,187
23,200 23,250 2,567 2,347 2,567 2,473 26,200 26,250 2,927 2,707 2,927 2,833 29,200 29,250 3,287 3,067 3,287 3,193
23,250 23,300 2,573 2,353 2,573 2,479 26,250 26,300 2,933 2,713 2,933 2,839 29,250 29,300 3,293 3,073 3,293 3,199
23,300 23,350 2,579 2,359 2,579 2,485 26,300 26,350 2,939 2,719 2,939 2,845 29,300 29,350 3,299 3,079 3,299 3,205
23,350 23,400 2,585 2,365 2,585 2,491 26,350 26,400 2,945 2,725 2,945 2,851 29,350 29,400 3,305 3,085 3,305 3,211
23,400 23,450 2,591 2,371 2,591 2,497 26,400 26,450 2,951 2,731 2,951 2,857 29,400 29,450 3,311 3,091 3,311 3,217
23,450 23,500 2,597 2,377 2,597 2,503 26,450 26,500 2,957 2,737 2,957 2,863 29,450 29,500 3,317 3,097 3,317 3,223
23,500 23,550 2,603 2,383 2,603 2,509 26,500 26,550 2,963 2,743 2,963 2,869 29,500 29,550 3,323 3,103 3,323 3,229
23,550 23,600 2,609 2,389 2,609 2,515 26,550 26,600 2,969 2,749 2,969 2,875 29,550 29,600 3,329 3,109 3,329 3,235
23,600 23,650 2,615 2,395 2,615 2,521 26,600 26,650 2,975 2,755 2,975 2,881 29,600 29,650 3,335 3,115 3,335 3,241
23,650 23,700 2,621 2,401 2,621 2,527 26,650 26,700 2,981 2,761 2,981 2,887 29,650 29,700 3,341 3,121 3,341 3,247
23,700 23,750 2,627 2,407 2,627 2,533 26,700 26,750 2,987 2,767 2,987 2,893 29,700 29,750 3,347 3,127 3,347 3,253
23,750 23,800 2,633 2,413 2,633 2,539 26,750 26,800 2,993 2,773 2,993 2,899 29,750 29,800 3,353 3,133 3,353 3,259
23,800 23,850 2,639 2,419 2,639 2,545 26,800 26,850 2,999 2,779 2,999 2,905 29,800 29,850 3,359 3,139 3,359 3,265
23,850 23,900 2,645 2,425 2,645 2,551 26,850 26,900 3,005 2,785 3,005 2,911 29,850 29,900 3,365 3,145 3,365 3,271
23,900 23,950 2,651 2,431 2,651 2,557 26,900 26,950 3,011 2,791 3,011 2,917 29,900 29,950 3,371 3,151 3,371 3,277
23,950 24,000 2,657 2,437 2,657 2,563 26,950 27,000 3,017 2,797 3,017 2,923 29,950 30,000 3,377 3,157 3,377 3,283
(Continued)


30,000 33,000 36,000

30,000 30,050 3,383 3,163 3,383 3,289 33,000 33,050 3,743 3,523 3,743 3,649 36,000 36,050 4,103 3,883 4,103 4,009
30,050 30,100 3,389 3,169 3,389 3,295 33,050 33,100 3,749 3,529 3,749 3,655 36,050 36,100 4,109 3,889 4,109 4,015
30,100 30,150 3,395 3,175 3,395 3,301 33,100 33,150 3,755 3,535 3,755 3,661 36,100 36,150 4,115 3,895 4,115 4,021
30,150 30,200 3,401 3,181 3,401 3,307 33,150 33,200 3,761 3,541 3,761 3,667 36,150 36,200 4,121 3,901 4,121 4,027
30,200 30,250 3,407 3,187 3,407 3,313 33,200 33,250 3,767 3,547 3,767 3,673 36,200 36,250 4,127 3,907 4,127 4,033
30,250 30,300 3,413 3,193 3,413 3,319 33,250 33,300 3,773 3,553 3,773 3,679 36,250 36,300 4,133 3,913 4,133 4,039
30,300 30,350 3,419 3,199 3,419 3,325 33,300 33,350 3,779 3,559 3,779 3,685 36,300 36,350 4,139 3,919 4,139 4,045
30,350 30,400 3,425 3,205 3,425 3,331 33,350 33,400 3,785 3,565 3,785 3,691 36,350 36,400 4,145 3,925 4,145 4,051
30,400 30,450 3,431 3,211 3,431 3,337 33,400 33,450 3,791 3,571 3,791 3,697 36,400 36,450 4,151 3,931 4,151 4,057
30,450 30,500 3,437 3,217 3,437 3,343 33,450 33,500 3,797 3,577 3,797 3,703 36,450 36,500 4,157 3,937 4,157 4,063
30,500 30,550 3,443 3,223 3,443 3,349 33,500 33,550 3,803 3,583 3,803 3,709 36,500 36,550 4,163 3,943 4,163 4,069
30,550 30,600 3,449 3,229 3,449 3,355 33,550 33,600 3,809 3,589 3,809 3,715 36,550 36,600 4,169 3,949 4,169 4,075
30,600 30,650 3,455 3,235 3,455 3,361 33,600 33,650 3,815 3,595 3,815 3,721 36,600 36,650 4,175 3,955 4,175 4,081
30,650 30,700 3,461 3,241 3,461 3,367 33,650 33,700 3,821 3,601 3,821 3,727 36,650 36,700 4,181 3,961 4,181 4,087
30,700 30,750 3,467 3,247 3,467 3,373 33,700 33,750 3,827 3,607 3,827 3,733 36,700 36,750 4,187 3,967 4,187 4,093
30,750 30,800 3,473 3,253 3,473 3,379 33,750 33,800 3,833 3,613 3,833 3,739 36,750 36,800 4,193 3,973 4,193 4,099
30,800 30,850 3,479 3,259 3,479 3,385 33,800 33,850 3,839 3,619 3,839 3,745 36,800 36,850 4,199 3,979 4,199 4,105
30,850 30,900 3,485 3,265 3,485 3,391 33,850 33,900 3,845 3,625 3,845 3,751 36,850 36,900 4,205 3,985 4,205 4,111
30,900 30,950 3,491 3,271 3,491 3,397 33,900 33,950 3,851 3,631 3,851 3,757 36,900 36,950 4,211 3,991 4,211 4,117
30,950 31,000 3,497 3,277 3,497 3,403 33,950 34,000 3,857 3,637 3,857 3,763 36,950 37,000 4,217 3,997 4,217 4,123
31,000 34,000 37,000

31,000 31,050 3,503 3,283 3,503 3,409 34,000 34,050 3,863 3,643 3,863 3,769 37,000 37,050 4,223 4,003 4,223 4,129
31,050 31,100 3,509 3,289 3,509 3,415 34,050 34,100 3,869 3,649 3,869 3,775 37,050 37,100 4,229 4,009 4,229 4,135
31,100 31,150 3,515 3,295 3,515 3,421 34,100 34,150 3,875 3,655 3,875 3,781 37,100 37,150 4,235 4,015 4,235 4,141
31,150 31,200 3,521 3,301 3,521 3,427 34,150 34,200 3,881 3,661 3,881 3,787 37,150 37,200 4,241 4,021 4,241 4,147
31,200 31,250 3,527 3,307 3,527 3,433 34,200 34,250 3,887 3,667 3,887 3,793 37,200 37,250 4,247 4,027 4,247 4,153
31,250 31,300 3,533 3,313 3,533 3,439 34,250 34,300 3,893 3,673 3,893 3,799 37,250 37,300 4,253 4,033 4,253 4,159
31,300 31,350 3,539 3,319 3,539 3,445 34,300 34,350 3,899 3,679 3,899 3,805 37,300 37,350 4,259 4,039 4,259 4,165
31,350 31,400 3,545 3,325 3,545 3,451 34,350 34,400 3,905 3,685 3,905 3,811 37,350 37,400 4,265 4,045 4,265 4,171
31,400 31,450 3,551 3,331 3,551 3,457 34,400 34,450 3,911 3,691 3,911 3,817 37,400 37,450 4,271 4,051 4,271 4,177
31,450 31,500 3,557 3,337 3,557 3,463 34,450 34,500 3,917 3,697 3,917 3,823 37,450 37,500 4,277 4,057 4,277 4,183
31,500 31,550 3,563 3,343 3,563 3,469 34,500 34,550 3,923 3,703 3,923 3,829 37,500 37,550 4,283 4,063 4,283 4,189
31,550 31,600 3,569 3,349 3,569 3,475 34,550 34,600 3,929 3,709 3,929 3,835 37,550 37,600 4,289 4,069 4,289 4,195
31,600 31,650 3,575 3,355 3,575 3,481 34,600 34,650 3,935 3,715 3,935 3,841 37,600 37,650 4,295 4,075 4,295 4,201
31,650 31,700 3,581 3,361 3,581 3,487 34,650 34,700 3,941 3,721 3,941 3,847 37,650 37,700 4,301 4,081 4,301 4,207
31,700 31,750 3,587 3,367 3,587 3,493 34,700 34,750 3,947 3,727 3,947 3,853 37,700 37,750 4,307 4,087 4,307 4,213
31,750 31,800 3,593 3,373 3,593 3,499 34,750 34,800 3,953 3,733 3,953 3,859 37,750 37,800 4,313 4,093 4,313 4,219
31,800 31,850 3,599 3,379 3,599 3,505 34,800 34,850 3,959 3,739 3,959 3,865 37,800 37,850 4,319 4,099 4,319 4,225
31,850 31,900 3,605 3,385 3,605 3,511 34,850 34,900 3,965 3,745 3,965 3,871 37,850 37,900 4,325 4,105 4,325 4,231
31,900 31,950 3,611 3,391 3,611 3,517 34,900 34,950 3,971 3,751 3,971 3,877 37,900 37,950 4,331 4,111 4,331 4,237
31,950 32,000 3,617 3,397 3,617 3,523 34,950 35,000 3,977 3,757 3,977 3,883 37,950 38,000 4,337 4,117 4,337 4,243
32,000 35,000 38,000

32,000 32,050 3,623 3,403 3,623 3,529 35,000 35,050 3,983 3,763 3,983 3,889 38,000 38,050 4,343 4,123 4,343 4,249
32,050 32,100 3,629 3,409 3,629 3,535 35,050 35,100 3,989 3,769 3,989 3,895 38,050 38,100 4,349 4,129 4,349 4,255
32,100 32,150 3,635 3,415 3,635 3,541 35,100 35,150 3,995 3,775 3,995 3,901 38,100 38,150 4,355 4,135 4,355 4,261
32,150 32,200 3,641 3,421 3,641 3,547 35,150 35,200 4,001 3,781 4,001 3,907 38,150 38,200 4,361 4,141 4,361 4,267
32,200 32,250 3,647 3,427 3,647 3,553 35,200 35,250 4,007 3,787 4,007 3,913 38,200 38,250 4,367 4,147 4,367 4,273
32,250 32,300 3,653 3,433 3,653 3,559 35,250 35,300 4,013 3,793 4,013 3,919 38,250 38,300 4,373 4,153 4,373 4,279
32,300 32,350 3,659 3,439 3,659 3,565 35,300 35,350 4,019 3,799 4,019 3,925 38,300 38,350 4,379 4,159 4,379 4,285
32,350 32,400 3,665 3,445 3,665 3,571 35,350 35,400 4,025 3,805 4,025 3,931 38,350 38,400 4,385 4,165 4,385 4,291
32,400 32,450 3,671 3,451 3,671 3,577 35,400 35,450 4,031 3,811 4,031 3,937 38,400 38,450 4,391 4,171 4,391 4,297
32,450 32,500 3,677 3,457 3,677 3,583 35,450 35,500 4,037 3,817 4,037 3,943 38,450 38,500 4,397 4,177 4,397 4,303
32,500 32,550 3,683 3,463 3,683 3,589 35,500 35,550 4,043 3,823 4,043 3,949 38,500 38,550 4,403 4,183 4,403 4,309
32,550 32,600 3,689 3,469 3,689 3,595 35,550 35,600 4,049 3,829 4,049 3,955 38,550 38,600 4,409 4,189 4,409 4,315
32,600 32,650 3,695 3,475 3,695 3,601 35,600 35,650 4,055 3,835 4,055 3,961 38,600 38,650 4,415 4,195 4,415 4,321
32,650 32,700 3,701 3,481 3,701 3,607 35,650 35,700 4,061 3,841 4,061 3,967 38,650 38,700 4,421 4,201 4,421 4,327
32,700 32,750 3,707 3,487 3,707 3,613 35,700 35,750 4,067 3,847 4,067 3,973 38,700 38,750 4,427 4,207 4,427 4,333
32,750 32,800 3,713 3,493 3,713 3,619 35,750 35,800 4,073 3,853 4,073 3,979 38,750 38,800 4,433 4,213 4,433 4,339
32,800 32,850 3,719 3,499 3,719 3,625 35,800 35,850 4,079 3,859 4,079 3,985 38,800 38,850 4,439 4,219 4,439 4,345
32,850 32,900 3,725 3,505 3,725 3,631 35,850 35,900 4,085 3,865 4,085 3,991 38,850 38,900 4,445 4,225 4,445 4,351
32,900 32,950 3,731 3,511 3,731 3,637 35,900 35,950 4,091 3,871 4,091 3,997 38,900 38,950 4,451 4,231 4,451 4,357
32,950 33,000 3,737 3,517 3,737 3,643 35,950 36,000 4,097 3,877 4,097 4,003 38,950 39,000 4,457 4,237 4,457 4,363
(Continued)


39,000 42,000 45,000

39,000 39,050 4,463 4,243 4,463 4,369 42,000 42,050 4,823 4,603 4,823 4,729 45,000 45,050 5,213 4,963 5,213 5,089
39,050 39,100 4,469 4,249 4,469 4,375 42,050 42,100 4,829 4,609 4,829 4,735 45,050 45,100 5,224 4,969 5,224 5,095
39,100 39,150 4,475 4,255 4,475 4,381 42,100 42,150 4,835 4,615 4,835 4,741 45,100 45,150 5,235 4,975 5,235 5,101
39,150 39,200 4,481 4,261 4,481 4,387 42,150 42,200 4,841 4,621 4,841 4,747 45,150 45,200 5,246 4,981 5,246 5,107
39,200 39,250 4,487 4,267 4,487 4,393 42,200 42,250 4,847 4,627 4,847 4,753 45,200 45,250 5,257 4,987 5,257 5,113
39,250 39,300 4,493 4,273 4,493 4,399 42,250 42,300 4,853 4,633 4,853 4,759 45,250 45,300 5,268 4,993 5,268 5,119
39,300 39,350 4,499 4,279 4,499 4,405 42,300 42,350 4,859 4,639 4,859 4,765 45,300 45,350 5,279 4,999 5,279 5,125
39,350 39,400 4,505 4,285 4,505 4,411 42,350 42,400 4,865 4,645 4,865 4,771 45,350 45,400 5,290 5,005 5,290 5,131
39,400 39,450 4,511 4,291 4,511 4,417 42,400 42,450 4,871 4,651 4,871 4,777 45,400 45,450 5,301 5,011 5,301 5,137
39,450 39,500 4,517 4,297 4,517 4,423 42,450 42,500 4,877 4,657 4,877 4,783 45,450 45,500 5,312 5,017 5,312 5,143
39,500 39,550 4,523 4,303 4,523 4,429 42,500 42,550 4,883 4,663 4,883 4,789 45,500 45,550 5,323 5,023 5,323 5,149
39,550 39,600 4,529 4,309 4,529 4,435 42,550 42,600 4,889 4,669 4,889 4,795 45,550 45,600 5,334 5,029 5,334 5,155
39,600 39,650 4,535 4,315 4,535 4,441 42,600 42,650 4,895 4,675 4,895 4,801 45,600 45,650 5,345 5,035 5,345 5,161
39,650 39,700 4,541 4,321 4,541 4,447 42,650 42,700 4,901 4,681 4,901 4,807 45,650 45,700 5,356 5,041 5,356 5,167
39,700 39,750 4,547 4,327 4,547 4,453 42,700 42,750 4,907 4,687 4,907 4,813 45,700 45,750 5,367 5,047 5,367 5,173
39,750 39,800 4,553 4,333 4,553 4,459 42,750 42,800 4,913 4,693 4,913 4,819 45,750 45,800 5,378 5,053 5,378 5,179
39,800 39,850 4,559 4,339 4,559 4,465 42,800 42,850 4,919 4,699 4,919 4,825 45,800 45,850 5,389 5,059 5,389 5,185
39,850 39,900 4,565 4,345 4,565 4,471 42,850 42,900 4,925 4,705 4,925 4,831 45,850 45,900 5,400 5,065 5,400 5,191
39,900 39,950 4,571 4,351 4,571 4,477 42,900 42,950 4,931 4,711 4,931 4,837 45,900 45,950 5,411 5,071 5,411 5,197
39,950 40,000 4,577 4,357 4,577 4,483 42,950 43,000 4,937 4,717 4,937 4,843 45,950 46,000 5,422 5,077 5,422 5,203
40,000 43,000 46,000

40,000 40,050 4,583 4,363 4,583 4,489 43,000 43,050 4,943 4,723 4,943 4,849 46,000 46,050 5,433 5,083 5,433 5,209
40,050 40,100 4,589 4,369 4,589 4,495 43,050 43,100 4,949 4,729 4,949 4,855 46,050 46,100 5,444 5,089 5,444 5,215
40,100 40,150 4,595 4,375 4,595 4,501 43,100 43,150 4,955 4,735 4,955 4,861 46,100 46,150 5,455 5,095 5,455 5,221
40,150 40,200 4,601 4,381 4,601 4,507 43,150 43,200 4,961 4,741 4,961 4,867 46,150 46,200 5,466 5,101 5,466 5,227
40,200 40,250 4,607 4,387 4,607 4,513 43,200 43,250 4,967 4,747 4,967 4,873 46,200 46,250 5,477 5,107 5,477 5,233
40,250 40,300 4,613 4,393 4,613 4,519 43,250 43,300 4,973 4,753 4,973 4,879 46,250 46,300 5,488 5,113 5,488 5,239
40,300 40,350 4,619 4,399 4,619 4,525 43,300 43,350 4,979 4,759 4,979 4,885 46,300 46,350 5,499 5,119 5,499 5,245
40,350 40,400 4,625 4,405 4,625 4,531 43,350 43,400 4,985 4,765 4,985 4,891 46,350 46,400 5,510 5,125 5,510 5,251
40,400 40,450 4,631 4,411 4,631 4,537 43,400 43,450 4,991 4,771 4,991 4,897 46,400 46,450 5,521 5,131 5,521 5,257
40,450 40,500 4,637 4,417 4,637 4,543 43,450 43,500 4,997 4,777 4,997 4,903 46,450 46,500 5,532 5,137 5,532 5,263
40,500 40,550 4,643 4,423 4,643 4,549 43,500 43,550 5,003 4,783 5,003 4,909 46,500 46,550 5,543 5,143 5,543 5,269
40,550 40,600 4,649 4,429 4,649 4,555 43,550 43,600 5,009 4,789 5,009 4,915 46,550 46,600 5,554 5,149 5,554 5,275
40,600 40,650 4,655 4,435 4,655 4,561 43,600 43,650 5,015 4,795 5,015 4,921 46,600 46,650 5,565 5,155 5,565 5,281
40,650 40,700 4,661 4,441 4,661 4,567 43,650 43,700 5,021 4,801 5,021 4,927 46,650 46,700 5,576 5,161 5,576 5,287
40,700 40,750 4,667 4,447 4,667 4,573 43,700 43,750 5,027 4,807 5,027 4,933 46,700 46,750 5,587 5,167 5,587 5,293
40,750 40,800 4,673 4,453 4,673 4,579 43,750 43,800 5,033 4,813 5,033 4,939 46,750 46,800 5,598 5,173 5,598 5,299
40,800 40,850 4,679 4,459 4,679 4,585 43,800 43,850 5,039 4,819 5,039 4,945 46,800 46,850 5,609 5,179 5,609 5,305
40,850 40,900 4,685 4,465 4,685 4,591 43,850 43,900 5,045 4,825 5,045 4,951 46,850 46,900 5,620 5,185 5,620 5,311
40,900 40,950 4,691 4,471 4,691 4,597 43,900 43,950 5,051 4,831 5,051 4,957 46,900 46,950 5,631 5,191 5,631 5,317
40,950 41,000 4,697 4,477 4,697 4,603 43,950 44,000 5,057 4,837 5,057 4,963 46,950 47,000 5,642 5,197 5,642 5,323
41,000 44,000 47,000

41,000 41,050 4,703 4,483 4,703 4,609 44,000 44,050 5,063 4,843 5,063 4,969 47,000 47,050 5,653 5,203 5,653 5,329
41,050 41,100 4,709 4,489 4,709 4,615 44,050 44,100 5,069 4,849 5,069 4,975 47,050 47,100 5,664 5,209 5,664 5,335
41,100 41,150 4,715 4,495 4,715 4,621 44,100 44,150 5,075 4,855 5,075 4,981 47,100 47,150 5,675 5,215 5,675 5,341
41,150 41,200 4,721 4,501 4,721 4,627 44,150 44,200 5,081 4,861 5,081 4,987 47,150 47,200 5,686 5,221 5,686 5,347
41,200 41,250 4,727 4,507 4,727 4,633 44,200 44,250 5,087 4,867 5,087 4,993 47,200 47,250 5,697 5,227 5,697 5,353
41,250 41,300 4,733 4,513 4,733 4,639 44,250 44,300 5,093 4,873 5,093 4,999 47,250 47,300 5,708 5,233 5,708 5,359
41,300 41,350 4,739 4,519 4,739 4,645 44,300 44,350 5,099 4,879 5,099 5,005 47,300 47,350 5,719 5,239 5,719 5,365
41,350 41,400 4,745 4,525 4,745 4,651 44,350 44,400 5,105 4,885 5,105 5,011 47,350 47,400 5,730 5,245 5,730 5,371
41,400 41,450 4,751 4,531 4,751 4,657 44,400 44,450 5,111 4,891 5,111 5,017 47,400 47,450 5,741 5,251 5,741 5,377
41,450 41,500 4,757 4,537 4,757 4,663 44,450 44,500 5,117 4,897 5,117 5,023 47,450 47,500 5,752 5,257 5,752 5,383
41,500 41,550 4,763 4,543 4,763 4,669 44,500 44,550 5,123 4,903 5,123 5,029 47,500 47,550 5,763 5,263 5,763 5,389
41,550 41,600 4,769 4,549 4,769 4,675 44,550 44,600 5,129 4,909 5,129 5,035 47,550 47,600 5,774 5,269 5,774 5,395
41,600 41,650 4,775 4,555 4,775 4,681 44,600 44,650 5,135 4,915 5,135 5,041 47,600 47,650 5,785 5,275 5,785 5,401
41,650 41,700 4,781 4,561 4,781 4,687 44,650 44,700 5,141 4,921 5,141 5,047 47,650 47,700 5,796 5,281 5,796 5,407
41,700 41,750 4,787 4,567 4,787 4,693 44,700 44,750 5,147 4,927 5,147 5,053 47,700 47,750 5,807 5,287 5,807 5,413
41,750 41,800 4,793 4,573 4,793 4,699 44,750 44,800 5,158 4,933 5,158 5,059 47,750 47,800 5,818 5,293 5,818 5,419
41,800 41,850 4,799 4,579 4,799 4,705 44,800 44,850 5,169 4,939 5,169 5,065 47,800 47,850 5,829 5,299 5,829 5,425
41,850 41,900 4,805 4,585 4,805 4,711 44,850 44,900 5,180 4,945 5,180 5,071 47,850 47,900 5,840 5,305 5,840 5,431
41,900 41,950 4,811 4,591 4,811 4,717 44,900 44,950 5,191 4,951 5,191 5,077 47,900 47,950 5,851 5,311 5,851 5,437
41,950 42,000 4,817 4,597 4,817 4,723 44,950 45,000 5,202 4,957 5,202 5,083 47,950 48,000 5,862 5,317 5,862 5,443
(Continued)


48,000 51,000 54,000

48,000 48,050 5,873 5,323 5,873 5,449 51,000 51,050 6,533 5,683 6,533 5,809 54,000 54,050 7,193 6,043 7,193 6,169
48,050 48,100 5,884 5,329 5,884 5,455 51,050 51,100 6,544 5,689 6,544 5,815 54,050 54,100 7,204 6,049 7,204 6,175
48,100 48,150 5,895 5,335 5,895 5,461 51,100 51,150 6,555 5,695 6,555 5,821 54,100 54,150 7,215 6,055 7,215 6,181
48,150 48,200 5,906 5,341 5,906 5,467 51,150 51,200 6,566 5,701 6,566 5,827 54,150 54,200 7,226 6,061 7,226 6,187
48,200 48,250 5,917 5,347 5,917 5,473 51,200 51,250 6,577 5,707 6,577 5,833 54,200 54,250 7,237 6,067 7,237 6,193
48,250 48,300 5,928 5,353 5,928 5,479 51,250 51,300 6,588 5,713 6,588 5,839 54,250 54,300 7,248 6,073 7,248 6,199
48,300 48,350 5,939 5,359 5,939 5,485 51,300 51,350 6,599 5,719 6,599 5,845 54,300 54,350 7,259 6,079 7,259 6,205
48,350 48,400 5,950 5,365 5,950 5,491 51,350 51,400 6,610 5,725 6,610 5,851 54,350 54,400 7,270 6,085 7,270 6,211
48,400 48,450 5,961 5,371 5,961 5,497 51,400 51,450 6,621 5,731 6,621 5,857 54,400 54,450 7,281 6,091 7,281 6,217
48,450 48,500 5,972 5,377 5,972 5,503 51,450 51,500 6,632 5,737 6,632 5,863 54,450 54,500 7,292 6,097 7,292 6,223
48,500 48,550 5,983 5,383 5,983 5,509 51,500 51,550 6,643 5,743 6,643 5,869 54,500 54,550 7,303 6,103 7,303 6,229
48,550 48,600 5,994 5,389 5,994 5,515 51,550 51,600 6,654 5,749 6,654 5,875 54,550 54,600 7,314 6,109 7,314 6,235
48,600 48,650 6,005 5,395 6,005 5,521 51,600 51,650 6,665 5,755 6,665 5,881 54,600 54,650 7,325 6,115 7,325 6,241
48,650 48,700 6,016 5,401 6,016 5,527 51,650 51,700 6,676 5,761 6,676 5,887 54,650 54,700 7,336 6,121 7,336 6,247
48,700 48,750 6,027 5,407 6,027 5,533 51,700 51,750 6,687 5,767 6,687 5,893 54,700 54,750 7,347 6,127 7,347 6,253
48,750 48,800 6,038 5,413 6,038 5,539 51,750 51,800 6,698 5,773 6,698 5,899 54,750 54,800 7,358 6,133 7,358 6,259
48,800 48,850 6,049 5,419 6,049 5,545 51,800 51,850 6,709 5,779 6,709 5,905 54,800 54,850 7,369 6,139 7,369 6,265
48,850 48,900 6,060 5,425 6,060 5,551 51,850 51,900 6,720 5,785 6,720 5,911 54,850 54,900 7,380 6,145 7,380 6,271
48,900 48,950 6,071 5,431 6,071 5,557 51,900 51,950 6,731 5,791 6,731 5,917 54,900 54,950 7,391 6,151 7,391 6,277
48,950 49,000 6,082 5,437 6,082 5,563 51,950 52,000 6,742 5,797 6,742 5,923 54,950 55,000 7,402 6,157 7,402 6,283
49,000 52,000 55,000

49,000 49,050 6,093 5,443 6,093 5,569 52,000 52,050 6,753 5,803 6,753 5,929 55,000 55,050 7,413 6,163 7,413 6,289
49,050 49,100 6,104 5,449 6,104 5,575 52,050 52,100 6,764 5,809 6,764 5,935 55,050 55,100 7,424 6,169 7,424 6,295
49,100 49,150 6,115 5,455 6,115 5,581 52,100 52,150 6,775 5,815 6,775 5,941 55,100 55,150 7,435 6,175 7,435 6,301
49,150 49,200 6,126 5,461 6,126 5,587 52,150 52,200 6,786 5,821 6,786 5,947 55,150 55,200 7,446 6,181 7,446 6,307
49,200 49,250 6,137 5,467 6,137 5,593 52,200 52,250 6,797 5,827 6,797 5,953 55,200 55,250 7,457 6,187 7,457 6,313
49,250 49,300 6,148 5,473 6,148 5,599 52,250 52,300 6,808 5,833 6,808 5,959 55,250 55,300 7,468 6,193 7,468 6,319
49,300 49,350 6,159 5,479 6,159 5,605 52,300 52,350 6,819 5,839 6,819 5,965 55,300 55,350 7,479 6,199 7,479 6,325
49,350 49,400 6,170 5,485 6,170 5,611 52,350 52,400 6,830 5,845 6,830 5,971 55,350 55,400 7,490 6,205 7,490 6,331
49,400 49,450 6,181 5,491 6,181 5,617 52,400 52,450 6,841 5,851 6,841 5,977 55,400 55,450 7,501 6,211 7,501 6,337
49,450 49,500 6,192 5,497 6,192 5,623 52,450 52,500 6,852 5,857 6,852 5,983 55,450 55,500 7,512 6,217 7,512 6,343
49,500 49,550 6,203 5,503 6,203 5,629 52,500 52,550 6,863 5,863 6,863 5,989 55,500 55,550 7,523 6,223 7,523 6,349
49,550 49,600 6,214 5,509 6,214 5,635 52,550 52,600 6,874 5,869 6,874 5,995 55,550 55,600 7,534 6,229 7,534 6,355
49,600 49,650 6,225 5,515 6,225 5,641 52,600 52,650 6,885 5,875 6,885 6,001 55,600 55,650 7,545 6,235 7,545 6,361
49,650 49,700 6,236 5,521 6,236 5,647 52,650 52,700 6,896 5,881 6,896 6,007 55,650 55,700 7,556 6,241 7,556 6,367
49,700 49,750 6,247 5,527 6,247 5,653 52,700 52,750 6,907 5,887 6,907 6,013 55,700 55,750 7,567 6,247 7,567 6,373
49,750 49,800 6,258 5,533 6,258 5,659 52,750 52,800 6,918 5,893 6,918 6,019 55,750 55,800 7,578 6,253 7,578 6,379
49,800 49,850 6,269 5,539 6,269 5,665 52,800 52,850 6,929 5,899 6,929 6,025 55,800 55,850 7,589 6,259 7,589 6,385
49,850 49,900 6,280 5,545 6,280 5,671 52,850 52,900 6,940 5,905 6,940 6,031 55,850 55,900 7,600 6,265 7,600 6,391
49,900 49,950 6,291 5,551 6,291 5,677 52,900 52,950 6,951 5,911 6,951 6,037 55,900 55,950 7,611 6,271 7,611 6,397
49,950 50,000 6,302 5,557 6,302 5,683 52,950 53,000 6,962 5,917 6,962 6,043 55,950 56,000 7,622 6,277 7,622 6,403
50,000 53,000 56,000

50,000 50,050 6,313 5,563 6,313 5,689 53,000 53,050 6,973 5,923 6,973 6,049 56,000 56,050 7,633 6,283 7,633 6,409
50,050 50,100 6,324 5,569 6,324 5,695 53,050 53,100 6,984 5,929 6,984 6,055 56,050 56,100 7,644 6,289 7,644 6,415
50,100 50,150 6,335 5,575 6,335 5,701 53,100 53,150 6,995 5,935 6,995 6,061 56,100 56,150 7,655 6,295 7,655 6,421
50,150 50,200 6,346 5,581 6,346 5,707 53,150 53,200 7,006 5,941 7,006 6,067 56,150 56,200 7,666 6,301 7,666 6,427
50,200 50,250 6,357 5,587 6,357 5,713 53,200 53,250 7,017 5,947 7,017 6,073 56,200 56,250 7,677 6,307 7,677 6,433
50,250 50,300 6,368 5,593 6,368 5,719 53,250 53,300 7,028 5,953 7,028 6,079 56,250 56,300 7,688 6,313 7,688 6,439
50,300 50,350 6,379 5,599 6,379 5,725 53,300 53,350 7,039 5,959 7,039 6,085 56,300 56,350 7,699 6,319 7,699 6,445
50,350 50,400 6,390 5,605 6,390 5,731 53,350 53,400 7,050 5,965 7,050 6,091 56,350 56,400 7,710 6,325 7,710 6,451
50,400 50,450 6,401 5,611 6,401 5,737 53,400 53,450 7,061 5,971 7,061 6,097 56,400 56,450 7,721 6,331 7,721 6,457
50,450 50,500 6,412 5,617 6,412 5,743 53,450 53,500 7,072 5,977 7,072 6,103 56,450 56,500 7,732 6,337 7,732 6,463
50,500 50,550 6,423 5,623 6,423 5,749 53,500 53,550 7,083 5,983 7,083 6,109 56,500 56,550 7,743 6,343 7,743 6,469
50,550 50,600 6,434 5,629 6,434 5,755 53,550 53,600 7,094 5,989 7,094 6,115 56,550 56,600 7,754 6,349 7,754 6,475
50,600 50,650 6,445 5,635 6,445 5,761 53,600 53,650 7,105 5,995 7,105 6,121 56,600 56,650 7,765 6,355 7,765 6,481
50,650 50,700 6,456 5,641 6,456 5,767 53,650 53,700 7,116 6,001 7,116 6,127 56,650 56,700 7,776 6,361 7,776 6,487
50,700 50,750 6,467 5,647 6,467 5,773 53,700 53,750 7,127 6,007 7,127 6,133 56,700 56,750 7,787 6,367 7,787 6,493
50,750 50,800 6,478 5,653 6,478 5,779 53,750 53,800 7,138 6,013 7,138 6,139 56,750 56,800 7,798 6,373 7,798 6,499
50,800 50,850 6,489 5,659 6,489 5,785 53,800 53,850 7,149 6,019 7,149 6,145 56,800 56,850 7,809 6,379 7,809 6,505
50,850 50,900 6,500 5,665 6,500 5,791 53,850 53,900 7,160 6,025 7,160 6,151 56,850 56,900 7,820 6,385 7,820 6,511
50,900 50,950 6,511 5,671 6,511 5,797 53,900 53,950 7,171 6,031 7,171 6,157 56,900 56,950 7,831 6,391 7,831 6,517
50,950 51,000 6,522 5,677 6,522 5,803 53,950 54,000 7,182 6,037 7,182 6,163 56,950 57,000 7,842 6,397 7,842 6,523
(Continued)


57,000 60,000 63,000

57,000 57,050 7,853 6,403 7,853 6,529 60,000 60,050 8,513 6,763 8,513 6,907 63,000 63,050 9,173 7,123 9,173 7,567
57,050 57,100 7,864 6,409 7,864 6,535 60,050 60,100 8,524 6,769 8,524 6,918 63,050 63,100 9,184 7,129 9,184 7,578
57,100 57,150 7,875 6,415 7,875 6,541 60,100 60,150 8,535 6,775 8,535 6,929 63,100 63,150 9,195 7,135 9,195 7,589
57,150 57,200 7,886 6,421 7,886 6,547 60,150 60,200 8,546 6,781 8,546 6,940 63,150 63,200 9,206 7,141 9,206 7,600
57,200 57,250 7,897 6,427 7,897 6,553 60,200 60,250 8,557 6,787 8,557 6,951 63,200 63,250 9,217 7,147 9,217 7,611
57,250 57,300 7,908 6,433 7,908 6,559 60,250 60,300 8,568 6,793 8,568 6,962 63,250 63,300 9,228 7,153 9,228 7,622
57,300 57,350 7,919 6,439 7,919 6,565 60,300 60,350 8,579 6,799 8,579 6,973 63,300 63,350 9,239 7,159 9,239 7,633
57,350 57,400 7,930 6,445 7,930 6,571 60,350 60,400 8,590 6,805 8,590 6,984 63,350 63,400 9,250 7,165 9,250 7,644
57,400 57,450 7,941 6,451 7,941 6,577 60,400 60,450 8,601 6,811 8,601 6,995 63,400 63,450 9,261 7,171 9,261 7,655
57,450 57,500 7,952 6,457 7,952 6,583 60,450 60,500 8,612 6,817 8,612 7,006 63,450 63,500 9,272 7,177 9,272 7,666
57,500 57,550 7,963 6,463 7,963 6,589 60,500 60,550 8,623 6,823 8,623 7,017 63,500 63,550 9,283 7,183 9,283 7,677
57,550 57,600 7,974 6,469 7,974 6,595 60,550 60,600 8,634 6,829 8,634 7,028 63,550 63,600 9,294 7,189 9,294 7,688
57,600 57,650 7,985 6,475 7,985 6,601 60,600 60,650 8,645 6,835 8,645 7,039 63,600 63,650 9,305 7,195 9,305 7,699
57,650 57,700 7,996 6,481 7,996 6,607 60,650 60,700 8,656 6,841 8,656 7,050 63,650 63,700 9,316 7,201 9,316 7,710
57,700 57,750 8,007 6,487 8,007 6,613 60,700 60,750 8,667 6,847 8,667 7,061 63,700 63,750 9,327 7,207 9,327 7,721
57,750 57,800 8,018 6,493 8,018 6,619 60,750 60,800 8,678 6,853 8,678 7,072 63,750 63,800 9,338 7,213 9,338 7,732
57,800 57,850 8,029 6,499 8,029 6,625 60,800 60,850 8,689 6,859 8,689 7,083 63,800 63,850 9,349 7,219 9,349 7,743
57,850 57,900 8,040 6,505 8,040 6,631 60,850 60,900 8,700 6,865 8,700 7,094 63,850 63,900 9,360 7,225 9,360 7,754
57,900 57,950 8,051 6,511 8,051 6,637 60,900 60,950 8,711 6,871 8,711 7,105 63,900 63,950 9,371 7,231 9,371 7,765
57,950 58,000 8,062 6,517 8,062 6,643 60,950 61,000 8,722 6,877 8,722 7,116 63,950 64,000 9,382 7,237 9,382 7,776
58,000 61,000 64,000

58,000 58,050 8,073 6,523 8,073 6,649 61,000 61,050 8,733 6,883 8,733 7,127 64,000 64,050 9,393 7,243 9,393 7,787
58,050 58,100 8,084 6,529 8,084 6,655 61,050 61,100 8,744 6,889 8,744 7,138 64,050 64,100 9,404 7,249 9,404 7,798
58,100 58,150 8,095 6,535 8,095 6,661 61,100 61,150 8,755 6,895 8,755 7,149 64,100 64,150 9,415 7,255 9,415 7,809
58,150 58,200 8,106 6,541 8,106 6,667 61,150 61,200 8,766 6,901 8,766 7,160 64,150 64,200 9,426 7,261 9,426 7,820
58,200 58,250 8,117 6,547 8,117 6,673 61,200 61,250 8,777 6,907 8,777 7,171 64,200 64,250 9,437 7,267 9,437 7,831
58,250 58,300 8,128 6,553 8,128 6,679 61,250 61,300 8,788 6,913 8,788 7,182 64,250 64,300 9,448 7,273 9,448 7,842
58,300 58,350 8,139 6,559 8,139 6,685 61,300 61,350 8,799 6,919 8,799 7,193 64,300 64,350 9,459 7,279 9,459 7,853
58,350 58,400 8,150 6,565 8,150 6,691 61,350 61,400 8,810 6,925 8,810 7,204 64,350 64,400 9,470 7,285 9,470 7,864
58,400 58,450 8,161 6,571 8,161 6,697 61,400 61,450 8,821 6,931 8,821 7,215 64,400 64,450 9,481 7,291 9,481 7,875
58,450 58,500 8,172 6,577 8,172 6,703 61,450 61,500 8,832 6,937 8,832 7,226 64,450 64,500 9,492 7,297 9,492 7,886
58,500 58,550 8,183 6,583 8,183 6,709 61,500 61,550 8,843 6,943 8,843 7,237 64,500 64,550 9,503 7,303 9,503 7,897
58,550 58,600 8,194 6,589 8,194 6,715 61,550 61,600 8,854 6,949 8,854 7,248 64,550 64,600 9,514 7,309 9,514 7,908
58,600 58,650 8,205 6,595 8,205 6,721 61,600 61,650 8,865 6,955 8,865 7,259 64,600 64,650 9,525 7,315 9,525 7,919
58,650 58,700 8,216 6,601 8,216 6,727 61,650 61,700 8,876 6,961 8,876 7,270 64,650 64,700 9,536 7,321 9,536 7,930
58,700 58,750 8,227 6,607 8,227 6,733 61,700 61,750 8,887 6,967 8,887 7,281 64,700 64,750 9,547 7,327 9,547 7,941
58,750 58,800 8,238 6,613 8,238 6,739 61,750 61,800 8,898 6,973 8,898 7,292 64,750 64,800 9,558 7,333 9,558 7,952
58,800 58,850 8,249 6,619 8,249 6,745 61,800 61,850 8,909 6,979 8,909 7,303 64,800 64,850 9,569 7,339 9,569 7,963
58,850 58,900 8,260 6,625 8,260 6,751 61,850 61,900 8,920 6,985 8,920 7,314 64,850 64,900 9,580 7,345 9,580 7,974
58,900 58,950 8,271 6,631 8,271 6,757 61,900 61,950 8,931 6,991 8,931 7,325 64,900 64,950 9,591 7,351 9,591 7,985
58,950 59,000 8,282 6,637 8,282 6,763 61,950 62,000 8,942 6,997 8,942 7,336 64,950 65,000 9,602 7,357 9,602 7,996
59,000 62,000 65,000

59,000 59,050 8,293 6,643 8,293 6,769 62,000 62,050 8,953 7,003 8,953 7,347 65,000 65,050 9,613 7,363 9,613 8,007
59,050 59,100 8,304 6,649 8,304 6,775 62,050 62,100 8,964 7,009 8,964 7,358 65,050 65,100 9,624 7,369 9,624 8,018
59,100 59,150 8,315 6,655 8,315 6,781 62,100 62,150 8,975 7,015 8,975 7,369 65,100 65,150 9,635 7,375 9,635 8,029
59,150 59,200 8,326 6,661 8,326 6,787 62,150 62,200 8,986 7,021 8,986 7,380 65,150 65,200 9,646 7,381 9,646 8,040
59,200 59,250 8,337 6,667 8,337 6,793 62,200 62,250 8,997 7,027 8,997 7,391 65,200 65,250 9,657 7,387 9,657 8,051
59,250 59,300 8,348 6,673 8,348 6,799 62,250 62,300 9,008 7,033 9,008 7,402 65,250 65,300 9,668 7,393 9,668 8,062
59,300 59,350 8,359 6,679 8,359 6,805 62,300 62,350 9,019 7,039 9,019 7,413 65,300 65,350 9,679 7,399 9,679 8,073
59,350 59,400 8,370 6,685 8,370 6,811 62,350 62,400 9,030 7,045 9,030 7,424 65,350 65,400 9,690 7,405 9,690 8,084
59,400 59,450 8,381 6,691 8,381 6,817 62,400 62,450 9,041 7,051 9,041 7,435 65,400 65,450 9,701 7,411 9,701 8,095
59,450 59,500 8,392 6,697 8,392 6,823 62,450 62,500 9,052 7,057 9,052 7,446 65,450 65,500 9,712 7,417 9,712 8,106
59,500 59,550 8,403 6,703 8,403 6,829 62,500 62,550 9,063 7,063 9,063 7,457 65,500 65,550 9,723 7,423 9,723 8,117
59,550 59,600 8,414 6,709 8,414 6,835 62,550 62,600 9,074 7,069 9,074 7,468 65,550 65,600 9,734 7,429 9,734 8,128
59,600 59,650 8,425 6,715 8,425 6,841 62,600 62,650 9,085 7,075 9,085 7,479 65,600 65,650 9,745 7,435 9,745 8,139
59,650 59,700 8,436 6,721 8,436 6,847 62,650 62,700 9,096 7,081 9,096 7,490 65,650 65,700 9,756 7,441 9,756 8,150
59,700 59,750 8,447 6,727 8,447 6,853 62,700 62,750 9,107 7,087 9,107 7,501 65,700 65,750 9,767 7,447 9,767 8,161
59,750 59,800 8,458 6,733 8,458 6,859 62,750 62,800 9,118 7,093 9,118 7,512 65,750 65,800 9,778 7,453 9,778 8,172
59,800 59,850 8,469 6,739 8,469 6,865 62,800 62,850 9,129 7,099 9,129 7,523 65,800 65,850 9,789 7,459 9,789 8,183
59,850 59,900 8,480 6,745 8,480 6,874 62,850 62,900 9,140 7,105 9,140 7,534 65,850 65,900 9,800 7,465 9,800 8,194
59,900 59,950 8,491 6,751 8,491 6,885 62,900 62,950 9,151 7,111 9,151 7,545 65,900 65,950 9,811 7,471 9,811 8,205
59,950 60,000 8,502 6,757 8,502 6,896 62,950 63,000 9,162 7,117 9,162 7,556 65,950 66,000 9,822 7,477 9,822 8,216
(Continued)


66,000 69,000 72,000

66,000 66,050 9,833 7,483 9,833 8,227 69,000 69,050 10,493 7,843 10,493 8,887 72,000 72,050 11,153 8,203 11,153 9,547
66,050 66,100 9,844 7,489 9,844 8,238 69,050 69,100 10,504 7,849 10,504 8,898 72,050 72,100 11,164 8,209 11,164 9,558
66,100 66,150 9,855 7,495 9,855 8,249 69,100 69,150 10,515 7,855 10,515 8,909 72,100 72,150 11,175 8,215 11,175 9,569
66,150 66,200 9,866 7,501 9,866 8,260 69,150 69,200 10,526 7,861 10,526 8,920 72,150 72,200 11,186 8,221 11,186 9,580
66,200 66,250 9,877 7,507 9,877 8,271 69,200 69,250 10,537 7,867 10,537 8,931 72,200 72,250 11,197 8,227 11,197 9,591
66,250 66,300 9,888 7,513 9,888 8,282 69,250 69,300 10,548 7,873 10,548 8,942 72,250 72,300 11,208 8,233 11,208 9,602
66,300 66,350 9,899 7,519 9,899 8,293 69,300 69,350 10,559 7,879 10,559 8,953 72,300 72,350 11,219 8,239 11,219 9,613
66,350 66,400 9,910 7,525 9,910 8,304 69,350 69,400 10,570 7,885 10,570 8,964 72,350 72,400 11,230 8,245 11,230 9,624
66,400 66,450 9,921 7,531 9,921 8,315 69,400 69,450 10,581 7,891 10,581 8,975 72,400 72,450 11,241 8,251 11,241 9,635
66,450 66,500 9,932 7,537 9,932 8,326 69,450 69,500 10,592 7,897 10,592 8,986 72,450 72,500 11,252 8,257 11,252 9,646
66,500 66,550 9,943 7,543 9,943 8,337 69,500 69,550 10,603 7,903 10,603 8,997 72,500 72,550 11,263 8,263 11,263 9,657
66,550 66,600 9,954 7,549 9,954 8,348 69,550 69,600 10,614 7,909 10,614 9,008 72,550 72,600 11,274 8,269 11,274 9,668
66,600 66,650 9,965 7,555 9,965 8,359 69,600 69,650 10,625 7,915 10,625 9,019 72,600 72,650 11,285 8,275 11,285 9,679
66,650 66,700 9,976 7,561 9,976 8,370 69,650 69,700 10,636 7,921 10,636 9,030 72,650 72,700 11,296 8,281 11,296 9,690
66,700 66,750 9,987 7,567 9,987 8,381 69,700 69,750 10,647 7,927 10,647 9,041 72,700 72,750 11,307 8,287 11,307 9,701
66,750 66,800 9,998 7,573 9,998 8,392 69,750 69,800 10,658 7,933 10,658 9,052 72,750 72,800 11,318 8,293 11,318 9,712
66,800 66,850 10,009 7,579 10,009 8,403 69,800 69,850 10,669 7,939 10,669 9,063 72,800 72,850 11,329 8,299 11,329 9,723
66,850 66,900 10,020 7,585 10,020 8,414 69,850 69,900 10,680 7,945 10,680 9,074 72,850 72,900 11,340 8,305 11,340 9,734
66,900 66,950 10,031 7,591 10,031 8,425 69,900 69,950 10,691 7,951 10,691 9,085 72,900 72,950 11,351 8,311 11,351 9,745
66,950 67,000 10,042 7,597 10,042 8,436 69,950 70,000 10,702 7,957 10,702 9,096 72,950 73,000 11,362 8,317 11,362 9,756
67,000 70,000 73,000

67,000 67,050 10,053 7,603 10,053 8,447 70,000 70,050 10,713 7,963 10,713 9,107 73,000 73,050 11,373 8,323 11,373 9,767
67,050 67,100 10,064 7,609 10,064 8,458 70,050 70,100 10,724 7,969 10,724 9,118 73,050 73,100 11,384 8,329 11,384 9,778
67,100 67,150 10,075 7,615 10,075 8,469 70,100 70,150 10,735 7,975 10,735 9,129 73,100 73,150 11,395 8,335 11,395 9,789
67,150 67,200 10,086 7,621 10,086 8,480 70,150 70,200 10,746 7,981 10,746 9,140 73,150 73,200 11,406 8,341 11,406 9,800
67,200 67,250 10,097 7,627 10,097 8,491 70,200 70,250 10,757 7,987 10,757 9,151 73,200 73,250 11,417 8,347 11,417 9,811
67,250 67,300 10,108 7,633 10,108 8,502 70,250 70,300 10,768 7,993 10,768 9,162 73,250 73,300 11,428 8,353 11,428 9,822
67,300 67,350 10,119 7,639 10,119 8,513 70,300 70,350 10,779 7,999 10,779 9,173 73,300 73,350 11,439 8,359 11,439 9,833
67,350 67,400 10,130 7,645 10,130 8,524 70,350 70,400 10,790 8,005 10,790 9,184 73,350 73,400 11,450 8,365 11,450 9,844
67,400 67,450 10,141 7,651 10,141 8,535 70,400 70,450 10,801 8,011 10,801 9,195 73,400 73,450 11,461 8,371 11,461 9,855
67,450 67,500 10,152 7,657 10,152 8,546 70,450 70,500 10,812 8,017 10,812 9,206 73,450 73,500 11,472 8,377 11,472 9,866
67,500 67,550 10,163 7,663 10,163 8,557 70,500 70,550 10,823 8,023 10,823 9,217 73,500 73,550 11,483 8,383 11,483 9,877
67,550 67,600 10,174 7,669 10,174 8,568 70,550 70,600 10,834 8,029 10,834 9,228 73,550 73,600 11,494 8,389 11,494 9,888
67,600 67,650 10,185 7,675 10,185 8,579 70,600 70,650 10,845 8,035 10,845 9,239 73,600 73,650 11,505 8,395 11,505 9,899
67,650 67,700 10,196 7,681 10,196 8,590 70,650 70,700 10,856 8,041 10,856 9,250 73,650 73,700 11,516 8,401 11,516 9,910
67,700 67,750 10,207 7,687 10,207 8,601 70,700 70,750 10,867 8,047 10,867 9,261 73,700 73,750 11,527 8,407 11,527 9,921
67,750 67,800 10,218 7,693 10,218 8,612 70,750 70,800 10,878 8,053 10,878 9,272 73,750 73,800 11,538 8,413 11,538 9,932
67,800 67,850 10,229 7,699 10,229 8,623 70,800 70,850 10,889 8,059 10,889 9,283 73,800 73,850 11,549 8,419 11,549 9,943
67,850 67,900 10,240 7,705 10,240 8,634 70,850 70,900 10,900 8,065 10,900 9,294 73,850 73,900 11,560 8,425 11,560 9,954
67,900 67,950 10,251 7,711 10,251 8,645 70,900 70,950 10,911 8,071 10,911 9,305 73,900 73,950 11,571 8,431 11,571 9,965
67,950 68,000 10,262 7,717 10,262 8,656 70,950 71,000 10,922 8,077 10,922 9,316 73,950 74,000 11,582 8,437 11,582 9,976
68,000 71,000 74,000

68,000 68,050 10,273 7,723 10,273 8,667 71,000 71,050 10,933 8,083 10,933 9,327 74,000 74,050 11,593 8,443 11,593 9,987
68,050 68,100 10,284 7,729 10,284 8,678 71,050 71,100 10,944 8,089 10,944 9,338 74,050 74,100 11,604 8,449 11,604 9,998
68,100 68,150 10,295 7,735 10,295 8,689 71,100 71,150 10,955 8,095 10,955 9,349 74,100 74,150 11,615 8,455 11,615 10,009
68,150 68,200 10,306 7,741 10,306 8,700 71,150 71,200 10,966 8,101 10,966 9,360 74,150 74,200 11,626 8,461 11,626 10,020
68,200 68,250 10,317 7,747 10,317 8,711 71,200 71,250 10,977 8,107 10,977 9,371 74,200 74,250 11,637 8,467 11,637 10,031
68,250 68,300 10,328 7,753 10,328 8,722 71,250 71,300 10,988 8,113 10,988 9,382 74,250 74,300 11,648 8,473 11,648 10,042
68,300 68,350 10,339 7,759 10,339 8,733 71,300 71,350 10,999 8,119 10,999 9,393 74,300 74,350 11,659 8,479 11,659 10,053
68,350 68,400 10,350 7,765 10,350 8,744 71,350 71,400 11,010 8,125 11,010 9,404 74,350 74,400 11,670 8,485 11,670 10,064
68,400 68,450 10,361 7,771 10,361 8,755 71,400 71,450 11,021 8,131 11,021 9,415 74,400 74,450 11,681 8,491 11,681 10,075
68,450 68,500 10,372 7,777 10,372 8,766 71,450 71,500 11,032 8,137 11,032 9,426 74,450 74,500 11,692 8,497 11,692 10,086
68,500 68,550 10,383 7,783 10,383 8,777 71,500 71,550 11,043 8,143 11,043 9,437 74,500 74,550 11,703 8,503 11,703 10,097
68,550 68,600 10,394 7,789 10,394 8,788 71,550 71,600 11,054 8,149 11,054 9,448 74,550 74,600 11,714 8,509 11,714 10,108
68,600 68,650 10,405 7,795 10,405 8,799 71,600 71,650 11,065 8,155 11,065 9,459 74,600 74,650 11,725 8,515 11,725 10,119
68,650 68,700 10,416 7,801 10,416 8,810 71,650 71,700 11,076 8,161 11,076 9,470 74,650 74,700 11,736 8,521 11,736 10,130
68,700 68,750 10,427 7,807 10,427 8,821 71,700 71,750 11,087 8,167 11,087 9,481 74,700 74,750 11,747 8,527 11,747 10,141
68,750 68,800 10,438 7,813 10,438 8,832 71,750 71,800 11,098 8,173 11,098 9,492 74,750 74,800 11,758 8,533 11,758 10,152
68,800 68,850 10,449 7,819 10,449 8,843 71,800 71,850 11,109 8,179 11,109 9,503 74,800 74,850 11,769 8,539 11,769 10,163
68,850 68,900 10,460 7,825 10,460 8,854 71,850 71,900 11,120 8,185 11,120 9,514 74,850 74,900 11,780 8,545 11,780 10,174
68,900 68,950 10,471 7,831 10,471 8,865 71,900 71,950 11,131 8,191 11,131 9,525 74,900 74,950 11,791 8,551 11,791 10,185
68,950 69,000 10,482 7,837 10,482 8,876 71,950 72,000 11,142 8,197 11,142 9,536 74,950 75,000 11,802 8,557 11,802 10,196
(Continued)


75,000 78,000 81,000

75,000 75,050 11,813 8,563 11,813 10,207 78,000 78,050 12,473 8,923 12,473 10,867 81,000 81,050 13,133 9,283 13,133 11,527
75,050 75,100 11,824 8,569 11,824 10,218 78,050 78,100 12,484 8,929 12,484 10,878 81,050 81,100 13,144 9,289 13,144 11,538
75,100 75,150 11,835 8,575 11,835 10,229 78,100 78,150 12,495 8,935 12,495 10,889 81,100 81,150 13,155 9,295 13,155 11,549
75,150 75,200 11,846 8,581 11,846 10,240 78,150 78,200 12,506 8,941 12,506 10,900 81,150 81,200 13,166 9,301 13,166 11,560
75,200 75,250 11,857 8,587 11,857 10,251 78,200 78,250 12,517 8,947 12,517 10,911 81,200 81,250 13,177 9,307 13,177 11,571
75,250 75,300 11,868 8,593 11,868 10,262 78,250 78,300 12,528 8,953 12,528 10,922 81,250 81,300 13,188 9,313 13,188 11,582
75,300 75,350 11,879 8,599 11,879 10,273 78,300 78,350 12,539 8,959 12,539 10,933 81,300 81,350 13,199 9,319 13,199 11,593
75,350 75,400 11,890 8,605 11,890 10,284 78,350 78,400 12,550 8,965 12,550 10,944 81,350 81,400 13,210 9,325 13,210 11,604
75,400 75,450 11,901 8,611 11,901 10,295 78,400 78,450 12,561 8,971 12,561 10,955 81,400 81,450 13,221 9,331 13,221 11,615
75,450 75,500 11,912 8,617 11,912 10,306 78,450 78,500 12,572 8,977 12,572 10,966 81,450 81,500 13,232 9,337 13,232 11,626
75,500 75,550 11,923 8,623 11,923 10,317 78,500 78,550 12,583 8,983 12,583 10,977 81,500 81,550 13,243 9,343 13,243 11,637
75,550 75,600 11,934 8,629 11,934 10,328 78,550 78,600 12,594 8,989 12,594 10,988 81,550 81,600 13,254 9,349 13,254 11,648
75,600 75,650 11,945 8,635 11,945 10,339 78,600 78,650 12,605 8,995 12,605 10,999 81,600 81,650 13,265 9,355 13,265 11,659
75,650 75,700 11,956 8,641 11,956 10,350 78,650 78,700 12,616 9,001 12,616 11,010 81,650 81,700 13,276 9,361 13,276 11,670
75,700 75,750 11,967 8,647 11,967 10,361 78,700 78,750 12,627 9,007 12,627 11,021 81,700 81,750 13,287 9,367 13,287 11,681
75,750 75,800 11,978 8,653 11,978 10,372 78,750 78,800 12,638 9,013 12,638 11,032 81,750 81,800 13,298 9,373 13,298 11,692
75,800 75,850 11,989 8,659 11,989 10,383 78,800 78,850 12,649 9,019 12,649 11,043 81,800 81,850 13,309 9,379 13,309 11,703
75,850 75,900 12,000 8,665 12,000 10,394 78,850 78,900 12,660 9,025 12,660 11,054 81,850 81,900 13,320 9,385 13,320 11,714
75,900 75,950 12,011 8,671 12,011 10,405 78,900 78,950 12,671 9,031 12,671 11,065 81,900 81,950 13,331 9,391 13,331 11,725
75,950 76,000 12,022 8,677 12,022 10,416 78,950 79,000 12,682 9,037 12,682 11,076 81,950 82,000 13,342 9,397 13,342 11,736
76,000 79,000 82,000

76,000 76,050 12,033 8,683 12,033 10,427 79,000 79,050 12,693 9,043 12,693 11,087 82,000 82,050 13,353 9,403 13,353 11,747
76,050 76,100 12,044 8,689 12,044 10,438 79,050 79,100 12,704 9,049 12,704 11,098 82,050 82,100 13,364 9,409 13,364 11,758
76,100 76,150 12,055 8,695 12,055 10,449 79,100 79,150 12,715 9,055 12,715 11,109 82,100 82,150 13,375 9,415 13,375 11,769
76,150 76,200 12,066 8,701 12,066 10,460 79,150 79,200 12,726 9,061 12,726 11,120 82,150 82,200 13,386 9,421 13,386 11,780
76,200 76,250 12,077 8,707 12,077 10,471 79,200 79,250 12,737 9,067 12,737 11,131 82,200 82,250 13,397 9,427 13,397 11,791
76,250 76,300 12,088 8,713 12,088 10,482 79,250 79,300 12,748 9,073 12,748 11,142 82,250 82,300 13,408 9,433 13,408 11,802
76,300 76,350 12,099 8,719 12,099 10,493 79,300 79,350 12,759 9,079 12,759 11,153 82,300 82,350 13,419 9,439 13,419 11,813
76,350 76,400 12,110 8,725 12,110 10,504 79,350 79,400 12,770 9,085 12,770 11,164 82,350 82,400 13,430 9,445 13,430 11,824
76,400 76,450 12,121 8,731 12,121 10,515 79,400 79,450 12,781 9,091 12,781 11,175 82,400 82,450 13,441 9,451 13,441 11,835
76,450 76,500 12,132 8,737 12,132 10,526 79,450 79,500 12,792 9,097 12,792 11,186 82,450 82,500 13,452 9,457 13,452 11,846
76,500 76,550 12,143 8,743 12,143 10,537 79,500 79,550 12,803 9,103 12,803 11,197 82,500 82,550 13,463 9,463 13,463 11,857
76,550 76,600 12,154 8,749 12,154 10,548 79,550 79,600 12,814 9,109 12,814 11,208 82,550 82,600 13,474 9,469 13,474 11,868
76,600 76,650 12,165 8,755 12,165 10,559 79,600 79,650 12,825 9,115 12,825 11,219 82,600 82,650 13,485 9,475 13,485 11,879
76,650 76,700 12,176 8,761 12,176 10,570 79,650 79,700 12,836 9,121 12,836 11,230 82,650 82,700 13,496 9,481 13,496 11,890
76,700 76,750 12,187 8,767 12,187 10,581 79,700 79,750 12,847 9,127 12,847 11,241 82,700 82,750 13,507 9,487 13,507 11,901
76,750 76,800 12,198 8,773 12,198 10,592 79,750 79,800 12,858 9,133 12,858 11,252 82,750 82,800 13,518 9,493 13,518 11,912
76,800 76,850 12,209 8,779 12,209 10,603 79,800 79,850 12,869 9,139 12,869 11,263 82,800 82,850 13,529 9,499 13,529 11,923
76,850 76,900 12,220 8,785 12,220 10,614 79,850 79,900 12,880 9,145 12,880 11,274 82,850 82,900 13,540 9,505 13,540 11,934
76,900 76,950 12,231 8,791 12,231 10,625 79,900 79,950 12,891 9,151 12,891 11,285 82,900 82,950 13,551 9,511 13,551 11,945
76,950 77,000 12,242 8,797 12,242 10,636 79,950 80,000 12,902 9,157 12,902 11,296 82,950 83,000 13,562 9,517 13,562 11,956
77,000 80,000 83,000

77,000 77,050 12,253 8,803 12,253 10,647 80,000 80,050 12,913 9,163 12,913 11,307 83,000 83,050 13,573 9,523 13,573 11,967
77,050 77,100 12,264 8,809 12,264 10,658 80,050 80,100 12,924 9,169 12,924 11,318 83,050 83,100 13,584 9,529 13,584 11,978
77,100 77,150 12,275 8,815 12,275 10,669 80,100 80,150 12,935 9,175 12,935 11,329 83,100 83,150 13,595 9,535 13,595 11,989
77,150 77,200 12,286 8,821 12,286 10,680 80,150 80,200 12,946 9,181 12,946 11,340 83,150 83,200 13,606 9,541 13,606 12,000
77,200 77,250 12,297 8,827 12,297 10,691 80,200 80,250 12,957 9,187 12,957 11,351 83,200 83,250 13,617 9,547 13,617 12,011
77,250 77,300 12,308 8,833 12,308 10,702 80,250 80,300 12,968 9,193 12,968 11,362 83,250 83,300 13,628 9,553 13,628 12,022
77,300 77,350 12,319 8,839 12,319 10,713 80,300 80,350 12,979 9,199 12,979 11,373 83,300 83,350 13,639 9,559 13,639 12,033
77,350 77,400 12,330 8,845 12,330 10,724 80,350 80,400 12,990 9,205 12,990 11,384 83,350 83,400 13,650 9,565 13,650 12,044
77,400 77,450 12,341 8,851 12,341 10,735 80,400 80,450 13,001 9,211 13,001 11,395 83,400 83,450 13,661 9,571 13,661 12,055
77,450 77,500 12,352 8,857 12,352 10,746 80,450 80,500 13,012 9,217 13,012 11,406 83,450 83,500 13,672 9,577 13,672 12,066
77,500 77,550 12,363 8,863 12,363 10,757 80,500 80,550 13,023 9,223 13,023 11,417 83,500 83,550 13,683 9,583 13,683 12,077
77,550 77,600 12,374 8,869 12,374 10,768 80,550 80,600 13,034 9,229 13,034 11,428 83,550 83,600 13,694 9,589 13,694 12,088
77,600 77,650 12,385 8,875 12,385 10,779 80,600 80,650 13,045 9,235 13,045 11,439 83,600 83,650 13,705 9,595 13,705 12,099
77,650 77,700 12,396 8,881 12,396 10,790 80,650 80,700 13,056 9,241 13,056 11,450 83,650 83,700 13,716 9,601 13,716 12,110
77,700 77,750 12,407 8,887 12,407 10,801 80,700 80,750 13,067 9,247 13,067 11,461 83,700 83,750 13,727 9,607 13,727 12,121
77,750 77,800 12,418 8,893 12,418 10,812 80,750 80,800 13,078 9,253 13,078 11,472 83,750 83,800 13,738 9,613 13,738 12,132
77,800 77,850 12,429 8,899 12,429 10,823 80,800 80,850 13,089 9,259 13,089 11,483 83,800 83,850 13,749 9,619 13,749 12,143
77,850 77,900 12,440 8,905 12,440 10,834 80,850 80,900 13,100 9,265 13,100 11,494 83,850 83,900 13,760 9,625 13,760 12,154
77,900 77,950 12,451 8,911 12,451 10,845 80,900 80,950 13,111 9,271 13,111 11,505 83,900 83,950 13,771 9,631 13,771 12,165
77,950 78,000 12,462 8,917 12,462 10,856 80,950 81,000 13,122 9,277 13,122 11,516 83,950 84,000 13,782 9,637 13,782 12,176
(Continued)


84,000 87,000 90,000

84,000 84,050 13,793 9,643 13,793 12,187 87,000 87,050 14,453 10,003 14,453 12,847 90,000 90,050 15,113 10,421 15,113 13,507
84,050 84,100 13,804 9,649 13,804 12,198 87,050 87,100 14,464 10,009 14,464 12,858 90,050 90,100 15,124 10,432 15,124 13,518
84,100 84,150 13,815 9,655 13,815 12,209 87,100 87,150 14,475 10,015 14,475 12,869 90,100 90,150 15,135 10,443 15,135 13,529
84,150 84,200 13,826 9,661 13,826 12,220 87,150 87,200 14,486 10,021 14,486 12,880 90,150 90,200 15,146 10,454 15,146 13,540
84,200 84,250 13,837 9,667 13,837 12,231 87,200 87,250 14,497 10,027 14,497 12,891 90,200 90,250 15,157 10,465 15,157 13,551
84,250 84,300 13,848 9,673 13,848 12,242 87,250 87,300 14,508 10,033 14,508 12,902 90,250 90,300 15,168 10,476 15,168 13,562
84,300 84,350 13,859 9,679 13,859 12,253 87,300 87,350 14,519 10,039 14,519 12,913 90,300 90,350 15,179 10,487 15,179 13,573
84,350 84,400 13,870 9,685 13,870 12,264 87,350 87,400 14,530 10,045 14,530 12,924 90,350 90,400 15,190 10,498 15,190 13,584
84,400 84,450 13,881 9,691 13,881 12,275 87,400 87,450 14,541 10,051 14,541 12,935 90,400 90,450 15,201 10,509 15,201 13,595
84,450 84,500 13,892 9,697 13,892 12,286 87,450 87,500 14,552 10,057 14,552 12,946 90,450 90,500 15,212 10,520 15,212 13,606
84,500 84,550 13,903 9,703 13,903 12,297 87,500 87,550 14,563 10,063 14,563 12,957 90,500 90,550 15,223 10,531 15,223 13,617
84,550 84,600 13,914 9,709 13,914 12,308 87,550 87,600 14,574 10,069 14,574 12,968 90,550 90,600 15,234 10,542 15,234 13,628
84,600 84,650 13,925 9,715 13,925 12,319 87,600 87,650 14,585 10,075 14,585 12,979 90,600 90,650 15,245 10,553 15,245 13,639
84,650 84,700 13,936 9,721 13,936 12,330 87,650 87,700 14,596 10,081 14,596 12,990 90,650 90,700 15,256 10,564 15,256 13,650
84,700 84,750 13,947 9,727 13,947 12,341 87,700 87,750 14,607 10,087 14,607 13,001 90,700 90,750 15,267 10,575 15,267 13,661
84,750 84,800 13,958 9,733 13,958 12,352 87,750 87,800 14,618 10,093 14,618 13,012 90,750 90,800 15,278 10,586 15,278 13,672
84,800 84,850 13,969 9,739 13,969 12,363 87,800 87,850 14,629 10,099 14,629 13,023 90,800 90,850 15,289 10,597 15,289 13,683
84,850 84,900 13,980 9,745 13,980 12,374 87,850 87,900 14,640 10,105 14,640 13,034 90,850 90,900 15,300 10,608 15,300 13,694
84,900 84,950 13,991 9,751 13,991 12,385 87,900 87,950 14,651 10,111 14,651 13,045 90,900 90,950 15,311 10,619 15,311 13,705
84,950 85,000 14,002 9,757 14,002 12,396 87,950 88,000 14,662 10,117 14,662 13,056 90,950 91,000 15,322 10,630 15,322 13,716
85,000 88,000 91,000

85,000 85,050 14,013 9,763 14,013 12,407 88,000 88,050 14,673 10,123 14,673 13,067 91,000 91,050 15,333 10,641 15,333 13,727
85,050 85,100 14,024 9,769 14,024 12,418 88,050 88,100 14,684 10,129 14,684 13,078 91,050 91,100 15,344 10,652 15,344 13,738
85,100 85,150 14,035 9,775 14,035 12,429 88,100 88,150 14,695 10,135 14,695 13,089 91,100 91,150 15,355 10,663 15,355 13,749
85,150 85,200 14,046 9,781 14,046 12,440 88,150 88,200 14,706 10,141 14,706 13,100 91,150 91,200 15,366 10,674 15,366 13,760
85,200 85,250 14,057 9,787 14,057 12,451 88,200 88,250 14,717 10,147 14,717 13,111 91,200 91,250 15,377 10,685 15,377 13,771
85,250 85,300 14,068 9,793 14,068 12,462 88,250 88,300 14,728 10,153 14,728 13,122 91,250 91,300 15,388 10,696 15,388 13,782
85,300 85,350 14,079 9,799 14,079 12,473 88,300 88,350 14,739 10,159 14,739 13,133 91,300 91,350 15,399 10,707 15,399 13,793
85,350 85,400 14,090 9,805 14,090 12,484 88,350 88,400 14,750 10,165 14,750 13,144 91,350 91,400 15,410 10,718 15,410 13,804
85,400 85,450 14,101 9,811 14,101 12,495 88,400 88,450 14,761 10,171 14,761 13,155 91,400 91,450 15,421 10,729 15,421 13,815
85,450 85,500 14,112 9,817 14,112 12,506 88,450 88,500 14,772 10,177 14,772 13,166 91,450 91,500 15,432 10,740 15,432 13,826
85,500 85,550 14,123 9,823 14,123 12,517 88,500 88,550 14,783 10,183 14,783 13,177 91,500 91,550 15,443 10,751 15,443 13,837
85,550 85,600 14,134 9,829 14,134 12,528 88,550 88,600 14,794 10,189 14,794 13,188 91,550 91,600 15,454 10,762 15,454 13,848
85,600 85,650 14,145 9,835 14,145 12,539 88,600 88,650 14,805 10,195 14,805 13,199 91,600 91,650 15,465 10,773 15,465 13,859
85,650 85,700 14,156 9,841 14,156 12,550 88,650 88,700 14,816 10,201 14,816 13,210 91,650 91,700 15,476 10,784 15,476 13,870
85,700 85,750 14,167 9,847 14,167 12,561 88,700 88,750 14,827 10,207 14,827 13,221 91,700 91,750 15,487 10,795 15,487 13,881
85,750 85,800 14,178 9,853 14,178 12,572 88,750 88,800 14,838 10,213 14,838 13,232 91,750 91,800 15,498 10,806 15,498 13,892
85,800 85,850 14,189 9,859 14,189 12,583 88,800 88,850 14,849 10,219 14,849 13,243 91,800 91,850 15,509 10,817 15,509 13,903
85,850 85,900 14,200 9,865 14,200 12,594 88,850 88,900 14,860 10,225 14,860 13,254 91,850 91,900 15,520 10,828 15,520 13,914
85,900 85,950 14,211 9,871 14,211 12,605 88,900 88,950 14,871 10,231 14,871 13,265 91,900 91,950 15,531 10,839 15,531 13,925
85,950 86,000 14,222 9,877 14,222 12,616 88,950 89,000 14,882 10,237 14,882 13,276 91,950 92,000 15,542 10,850 15,542 13,936
86,000 89,000 92,000

86,000 86,050 14,233 9,883 14,233 12,627 89,000 89,050 14,893 10,243 14,893 13,287 92,000 92,050 15,553 10,861 15,553 13,947
86,050 86,100 14,244 9,889 14,244 12,638 89,050 89,100 14,904 10,249 14,904 13,298 92,050 92,100 15,564 10,872 15,564 13,958
86,100 86,150 14,255 9,895 14,255 12,649 89,100 89,150 14,915 10,255 14,915 13,309 92,100 92,150 15,575 10,883 15,575 13,969
86,150 86,200 14,266 9,901 14,266 12,660 89,150 89,200 14,926 10,261 14,926 13,320 92,150 92,200 15,586 10,894 15,586 13,980
86,200 86,250 14,277 9,907 14,277 12,671 89,200 89,250 14,937 10,267 14,937 13,331 92,200 92,250 15,597 10,905 15,597 13,991
86,250 86,300 14,288 9,913 14,288 12,682 89,250 89,300 14,948 10,273 14,948 13,342 92,250 92,300 15,608 10,916 15,608 14,002
86,300 86,350 14,299 9,919 14,299 12,693 89,300 89,350 14,959 10,279 14,959 13,353 92,300 92,350 15,619 10,927 15,619 14,013
86,350 86,400 14,310 9,925 14,310 12,704 89,350 89,400 14,970 10,285 14,970 13,364 92,350 92,400 15,630 10,938 15,630 14,024
86,400 86,450 14,321 9,931 14,321 12,715 89,400 89,450 14,981 10,291 14,981 13,375 92,400 92,450 15,641 10,949 15,641 14,035
86,450 86,500 14,332 9,937 14,332 12,726 89,450 89,500 14,992 10,300 14,992 13,386 92,450 92,500 15,652 10,960 15,652 14,046
86,500 86,550 14,343 9,943 14,343 12,737 89,500 89,550 15,003 10,311 15,003 13,397 92,500 92,550 15,663 10,971 15,663 14,057
86,550 86,600 14,354 9,949 14,354 12,748 89,550 89,600 15,014 10,322 15,014 13,408 92,550 92,600 15,674 10,982 15,674 14,068
86,600 86,650 14,365 9,955 14,365 12,759 89,600 89,650 15,025 10,333 15,025 13,419 92,600 92,650 15,685 10,993 15,685 14,079
86,650 86,700 14,376 9,961 14,376 12,770 89,650 89,700 15,036 10,344 15,036 13,430 92,650 92,700 15,696 11,004 15,696 14,090
86,700 86,750 14,387 9,967 14,387 12,781 89,700 89,750 15,047 10,355 15,047 13,441 92,700 92,750 15,707 11,015 15,707 14,101
86,750 86,800 14,398 9,973 14,398 12,792 89,750 89,800 15,058 10,366 15,058 13,452 92,750 92,800 15,718 11,026 15,718 14,112
86,800 86,850 14,409 9,979 14,409 12,803 89,800 89,850 15,069 10,377 15,069 13,463 92,800 92,850 15,729 11,037 15,729 14,123
86,850 86,900 14,420 9,985 14,420 12,814 89,850 89,900 15,080 10,388 15,080 13,474 92,850 92,900 15,740 11,048 15,740 14,134
86,900 86,950 14,431 9,991 14,431 12,825 89,900 89,950 15,091 10,399 15,091 13,485 92,900 92,950 15,751 11,059 15,751 14,145
86,950 87,000 14,442 9,997 14,442 12,836 89,950 90,000 15,102 10,410 15,102 13,496 92,950 93,000 15,762 11,070 15,762 14,156
(Continued)


93,000 96,000 99,000

93,000 93,050 15,773 11,081 15,773 14,167 96,000 96,050 16,446 11,741 16,446 14,840 99,000 99,050 17,166 12,401 17,166 15,560
93,050 93,100 15,784 11,092 15,784 14,178 96,050 96,100 16,458 11,752 16,458 14,852 99,050 99,100 17,178 12,412 17,178 15,572
93,100 93,150 15,795 11,103 15,795 14,189 96,100 96,150 16,470 11,763 16,470 14,864 99,100 99,150 17,190 12,423 17,190 15,584
93,150 93,200 15,806 11,114 15,806 14,200 96,150 96,200 16,482 11,774 16,482 14,876 99,150 99,200 17,202 12,434 17,202 15,596
93,200 93,250 15,817 11,125 15,817 14,211 96,200 96,250 16,494 11,785 16,494 14,888 99,200 99,250 17,214 12,445 17,214 15,608
93,250 93,300 15,828 11,136 15,828 14,222 96,250 96,300 16,506 11,796 16,506 14,900 99,250 99,300 17,226 12,456 17,226 15,620
93,300 93,350 15,839 11,147 15,839 14,233 96,300 96,350 16,518 11,807 16,518 14,912 99,300 99,350 17,238 12,467 17,238 15,632
93,350 93,400 15,850 11,158 15,850 14,244 96,350 96,400 16,530 11,818 16,530 14,924 99,350 99,400 17,250 12,478 17,250 15,644
93,400 93,450 15,861 11,169 15,861 14,255 96,400 96,450 16,542 11,829 16,542 14,936 99,400 99,450 17,262 12,489 17,262 15,656
93,450 93,500 15,872 11,180 15,872 14,266 96,450 96,500 16,554 11,840 16,554 14,948 99,450 99,500 17,274 12,500 17,274 15,668
93,500 93,550 15,883 11,191 15,883 14,277 96,500 96,550 16,566 11,851 16,566 14,960 99,500 99,550 17,286 12,511 17,286 15,680
93,550 93,600 15,894 11,202 15,894 14,288 96,550 96,600 16,578 11,862 16,578 14,972 99,550 99,600 17,298 12,522 17,298 15,692
93,600 93,650 15,905 11,213 15,905 14,299 96,600 96,650 16,590 11,873 16,590 14,984 99,600 99,650 17,310 12,533 17,310 15,704
93,650 93,700 15,916 11,224 15,916 14,310 96,650 96,700 16,602 11,884 16,602 14,996 99,650 99,700 17,322 12,544 17,322 15,716
93,700 93,750 15,927 11,235 15,927 14,321 96,700 96,750 16,614 11,895 16,614 15,008 99,700 99,750 17,334 12,555 17,334 15,728
93,750 93,800 15,938 11,246 15,938 14,332 96,750 96,800 16,626 11,906 16,626 15,020 99,750 99,800 17,346 12,566 17,346 15,740
93,800 93,850 15,949 11,257 15,949 14,343 96,800 96,850 16,638 11,917 16,638 15,032 99,800 99,850 17,358 12,577 17,358 15,752
93,850 93,900 15,960 11,268 15,960 14,354 96,850 96,900 16,650 11,928 16,650 15,044 99,850 99,900 17,370 12,588 17,370 15,764
93,900 93,950 15,971 11,279 15,971 14,365 96,900 96,950 16,662 11,939 16,662 15,056 99,900 99,950 17,382 12,599 17,382 15,776
93,950 94,000 15,982 11,290 15,982 14,376 96,950 97,000 16,674 11,950 16,674 15,068 99,950 100,000 17,394 12,610 17,394 15,788
94,000 97,000
94,000 94,050 15,993 11,301 15,993 14,387 97,000 97,050 16,686 11,961 16,686 15,080 $100,000
94,050 94,100 16,004 11,312 16,004 14,398 97,050 97,100 16,698 11,972 16,698 15,092 or over
94,100 94,150 16,015 11,323 16,015 14,409 97,100 97,150 16,710 11,983 16,710 15,104 use the Tax
94,150 94,200 16,026 11,334 16,026 14,420 97,150 97,200 16,722 11,994 16,722 15,116 Computation
94,200 94,250 16,037 11,345 16,037 14,431 97,200 97,250 16,734 12,005 16,734 15,128 Worksheet
94,250 94,300 16,048 11,356 16,048 14,442 97,250 97,300 16,746 12,016 16,746 15,140
94,300 94,350 16,059 11,367 16,059 14,453 97,300 97,350 16,758 12,027 16,758 15,152
94,350 94,400 16,070 11,378 16,070 14,464 97,350 97,400 16,770 12,038 16,770 15,164
94,400 94,450 16,081 11,389 16,081 14,475 97,400 97,450 16,782 12,049 16,782 15,176
94,450 94,500 16,092 11,400 16,092 14,486 97,450 97,500 16,794 12,060 16,794 15,188
94,500 94,550 16,103 11,411 16,103 14,497 97,500 97,550 16,806 12,071 16,806 15,200
94,550 94,600 16,114 11,422 16,114 14,508 97,550 97,600 16,818 12,082 16,818 15,212
94,600 94,650 16,125 11,433 16,125 14,519 97,600 97,650 16,830 12,093 16,830 15,224
94,650 94,700 16,136 11,444 16,136 14,530 97,650 97,700 16,842 12,104 16,842 15,236
94,700 94,750 16,147 11,455 16,147 14,541 97,700 97,750 16,854 12,115 16,854 15,248
94,750 94,800 16,158 11,466 16,158 14,552 97,750 97,800 16,866 12,126 16,866 15,260
94,800 94,850 16,169 11,477 16,169 14,563 97,800 97,850 16,878 12,137 16,878 15,272
94,850 94,900 16,180 11,488 16,180 14,574 97,850 97,900 16,890 12,148 16,890 15,284
94,900 94,950 16,191 11,499 16,191 14,585 97,900 97,950 16,902 12,159 16,902 15,296
94,950 95,000 16,202 11,510 16,202 14,596 97,950 98,000 16,914 12,170 16,914 15,308
95,000 98,000
95,000 95,050 16,213 11,521 16,213 14,607 98,000 98,050 16,926 12,181 16,926 15,320
95,050 95,100 16,224 11,532 16,224 14,618 98,050 98,100 16,938 12,192 16,938 15,332
95,100 95,150 16,235 11,543 16,235 14,629 98,100 98,150 16,950 12,203 16,950 15,344
95,150 95,200 16,246 11,554 16,246 14,640 98,150 98,200 16,962 12,214 16,962 15,356
95,200 95,250 16,257 11,565 16,257 14,651 98,200 98,250 16,974 12,225 16,974 15,368
95,250 95,300 16,268 11,576 16,268 14,662 98,250 98,300 16,986 12,236 16,986 15,380
95,300 95,350 16,279 11,587 16,279 14,673 98,300 98,350 16,998 12,247 16,998 15,392
95,350 95,400 16,290 11,598 16,290 14,684 98,350 98,400 17,010 12,258 17,010 15,404
95,400 95,450 16,302 11,609 16,302 14,696 98,400 98,450 17,022 12,269 17,022 15,416
95,450 95,500 16,314 11,620 16,314 14,708 98,450 98,500 17,034 12,280 17,034 15,428
95,500 95,550 16,326 11,631 16,326 14,720 98,500 98,550 17,046 12,291 17,046 15,440
95,550 95,600 16,338 11,642 16,338 14,732 98,550 98,600 17,058 12,302 17,058 15,452
95,600 95,650 16,350 11,653 16,350 14,744 98,600 98,650 17,070 12,313 17,070 15,464
95,650 95,700 16,362 11,664 16,362 14,756 98,650 98,700 17,082 12,324 17,082 15,476
95,700 95,750 16,374 11,675 16,374 14,768 98,700 98,750 17,094 12,335 17,094 15,488
95,750 95,800 16,386 11,686 16,386 14,780 98,750 98,800 17,106 12,346 17,106 15,500
95,800 95,850 16,398 11,697 16,398 14,792 98,800 98,850 17,118 12,357 17,118 15,512
95,850 95,900 16,410 11,708 16,410 14,804 98,850 98,900 17,130 12,368 17,130 15,524
95,900 95,950 16,422 11,719 16,422 14,816 98,900 98,950 17,142 12,379 17,142 15,536
95,950 96,000 16,434 11,730 16,434 14,828 98,950 99,000 17,154 12,390 17,154 15,548

2023 Tax Computation Worksheet—Line 16
See Line 16 in the Instructions for Form 1040 to see if you must use the worksheet below to figure your tax.
!
CAUTION
Note. If you’re required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified
Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax
Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you’re looking up. Enter the
result on the appropriate line of the form or worksheet that you’re completing.
Section A—Use if your filing status is Single. Complete the row below that applies to you.
Tax.
Subtract (d) from (c).
(a) (b) (c) Enter the result here and
Taxable income. Enter the amount from Multiplication Multiply (d) on Form 1040 or
If line 15 is— line 15. amount (a) by (b) Subtraction amount 1040-SR, line 16.
At least $100,000 but not over $182,100 $ × 24% (0.24) $ $ 6,600.00 $
Over $182,100 but not over $231,250 $ × 32% (0.32) $ $ 21,168.00 $
Over $231,250 but not over $578,125 $ × 35% (0.35) $ $ 28,105.50 $
Over $578,125 $ × 37% (0.37) $ $ 39,668.00 $
Section B—Use if your filing status is Married filing jointly or Qualifying surviving spouse. Complete the row below that applies to you.
Tax.
Taxable income. Enter the amount Multiplication Multiply (d) on Form 1040 or
If line 15 is— from line 15. amount (a) by (b) Subtraction amount 1040-SR, line 16.
Over $190,750 but not over $364,200 $ × 24% (0.24) $ $ 13,200.00 $
Over $364,200 but not over $462,500 $ × 32% (0.32) $ $ 42,336.00 $
Over $462,500 but not over $693,750 $ × 35% (0.35) $ $ 56,211.00 $
Over $693,750 $ × 37% (0.37) $ $ 70,086.00 $
Section C—Use if your filing status is Married filing separately. Complete the row below that applies to you.
Tax.
Taxable income. Enter the amount from Multiplication Multiply (d) on Form 1040 or
If line 15 is— line 15. amount (a) by (b) Subtraction amount 1040-SR, line 16.
Over $182,100 but not over $231,250 $ × 32% (0.32) $ $ 21,168.00 $
Over $231,250 but not over $346,875 $ × 35% (0.35) $ $ 28,105.50 $
Over $346,875 $ × 37% (0.37) $ $ 35,043.00 $
Section D—Use if your filing status is Head of household. Complete the row below that applies to you.
Tax.
(a) (c) Enter the result here and
Taxable income. Enter the amount (b) Multiply (d) on Form 1040 or
If line 15 is— from line 15. Multiplication amount (a) by (b) Subtraction amount 1040-SR, line 16.
Over $182,100 but not over $231,250 $ × 32% (0.32) $ $ 22,774.00 $
Over $231,250 but not over $578,100 $ × 35% (0.35) $ $ 29,711.50 $
Over $578,100 $ × 37% (0.37) $ $ 41,273.50 $

2023 Tax Rate Schedules
The Tax Rate Schedules are shown so you can see the tax rate that applies to all levels of taxable income. Don’t use them to figure your tax. Instead,
see chapter 13.
!
CAUTION
Schedule X—If your filing status is Single
If your taxable income is: The tax is:

Over— But not over— of the amount over—
$0 $11,000 - - - - - - - 10% $0
11,000 44,725 $1,100.00 + 12% 11,000
44,725 95,375 5,147.00 + 22% 44,725
95,375 182,100 16,290.00 + 24% 95,375
182,100 231,250 37,104.00 + 32% 182,100
231,250 578,125 52,832.00 + 35% 231,250
578,125 ------- 174,238.25 + 37% 578,125
Schedule Y-1—If your filing status is Married filing jointly or Qualifying surviving spouse

$0 $22,000 - - - - - - - 10% $0
22,000 89,450 $2,200.00 + 12% 22,000
89,450 190,750 10,294.00 + 22% 89,450
190,750 364,200 32,580.00 + 24% 190,750
364,200 462,500 74,208.00 + 32% 364,200
462,500 693,750 105,664.00 + 35% 462,500
693,750 ------- 186,601.50 + 37% 693,750
Schedule Y-2—If your filing status is Married filing separately

$0 $11,000 - - - - - - - 10% $0
11,000 44,725 $1,100.00 + 12% 11,000
44,725 95,375 5,147.00 + 22% 44,725
95,375 182,100 16,290.00 + 24% 95,375
182,100 231,250 37,104.00 + 32% 182,100
231,250 346,875 52,832.00 + 35% 231,250
346,875 ------- 93,300.75 + 37% 346,875
Schedule Z—If your filing status is Head of household

$0 $15,700 - - - - - - - 10% $0
15,700 59,850 $1,570.00 + 12% 15,700
59,850 95,350 6,868.00 + 22% 59,850
95,350 182,100 14,678.00 + 24% 95,350
182,100 231,250 35,498.00 + 32% 182,100
231,250 578,100 51,226.00 + 35% 231,250
578,100 ------- 172,623.50 + 37% 578,100

Your Rights as a Taxpayer
This section explains your rights as ers have the right to know when the as Forms 1099 and W-2, on stud- Your Appeal Rights and How to
a taxpayer and the processes for IRS has finished an audit. ies of past examinations, or on cer- Prepare a Protest if You Don't
examination, appeal, collection, tain issues identified by compli- Agree, and Pub. 556.
7. The Right to Privacy. Taxpay-
and refunds. ance projects. Second, we use If you do not wish to use the
ers have the right to expect that
information from outside sources IRS Independent Office of Appeals
any IRS inquiry, examination, or
that indicates that a return may
The Taxpayer Bill of enforcement action will comply
have incorrect amounts. These
or disagree with its findings, you
may be able to take your case to
Rights with the law and be no more intru-
sive than necessary, and will re-
sources may include newspapers, the U.S. Tax Court, U.S. Court of
public records, and individuals. If Federal Claims, or the U.S. District
1. The Right to Be Informed. spect all due process rights, includ-
we determine that the information Court where you live. If you take
Taxpayers have the right to know ing search and seizure protections,
is accurate and reliable, we may your case to court, the IRS will
what they need to do to comply and will provide, where applicable,
use it to select a return for exami- have the burden of proving certain
with the tax laws. They are entitled a collection due process hearing.
nation. facts if you kept adequate records
to clear explanations of the laws 8. The Right to Confidentiality. Pub. 556, Examination of Re- to show your tax liability, cooper-
and IRS procedures in all tax Taxpayers have the right to expect turns, Appeal Rights, and Claims ated with the IRS, and meet certain
forms, instructions, publications, that any information they provide to for Refund, explains the rules and other conditions. If the court agrees
notices, and correspondence. the IRS will not be disclosed unless procedures that we follow in exami- with you on most issues in your
They have the right to be informed authorized by the taxpayer or by nations. The following sections case and finds that our position
of IRS decisions about their tax ac- law. Taxpayers have the right to ex- give an overview of how we con- was largely unjustified, you may be
counts and to receive clear explan- pect appropriate action will be duct examinations. able to recover some of your ad-
ations of the outcomes. taken against employees, return ministrative and litigation costs.
By mail. We handle many exami-
2. The Right to Quality Service. preparers, and others who wrong- You will not be eligible to recover
nations and inquiries by mail. We
Taxpayers have the right to receive fully use or disclose taxpayer return these costs unless you tried to re-
will send you a letter with either a
prompt, courteous, and professio- information. solve your case administratively, in-
request for more information or a
nal assistance in their dealings with cluding going through the appeals
9. The Right to Retain Repre- reason why we believe a change to
the IRS, to be spoken to in a way system, and you gave us the infor-
sentation. Taxpayers have the your return may be needed. You
they can easily understand, to re- mation necessary to resolve the
right to retain an authorized repre- can respond by mail or you can re-
ceive clear and easily understand- case.
sentative of their choice to repre- quest a personal interview with an
able communications from the IRS, sent them in their dealings with the examiner. If you mail us the re-
and to speak to a supervisor about
inadequate service.
IRS. Taxpayers have the right to quested information or provide an Collections
seek assistance from a Low In- explanation, we may or may not
3. The Right to Pay No More come Taxpayer Clinic if they cannot agree with you, and we will explain Pub. 594, The IRS Collection Proc-
than the Correct Amount of Tax. afford representation. the reasons for any changes. Do ess, explains your rights and re-
Taxpayers have the right to pay not hesitate to write to us about sponsibilities regarding payment of
10. The Right to a Fair and Just federal taxes. It describes the fol-
only the amount of tax legally due, anything you do not understand.
Tax System. Taxpayers have the lowing.
including interest and penalties, right to expect the tax system to By interview. If we notify you that
and to have the IRS apply all tax consider facts and circumstances we will conduct your examination • What to do when you owe
payments properly. that might affect their underlying li- through a personal interview, or taxes. It describes what to do
abilities, ability to pay, or ability to you request such an interview, you if you get a tax bill and what to
4. The Right to Challenge the
provide information timely. Taxpay- have the right to ask that the ex- do if you think your bill is
IRS’s Position and Be Heard.
ers have the right to receive assis- amination take place at a reasona- wrong. It also covers making
Taxpayers have the right to raise
tance from the Taxpayer Advocate ble time and place that is conven- installment payments, delay-
objections and provide additional
Service if they are experiencing fi- ient for both you and the IRS. If our ing collection action, and sub-
documentation in response to for-
nancial difficulty or if the IRS has examiner proposes any changes to mitting an offer in compro-
mal IRS actions or proposed ac-
not resolved their tax issues prop- your return, they will explain the mise.
tions, to expect that the IRS will
consider their timely objections erly and timely through its normal reasons for the changes. If you do • IRS collection actions. It cov-
and documentation promptly and channels. not agree with these changes, you ers liens, releasing a lien, lev-
fairly, and to receive a response if can meet with the examiner's su- ies, releasing a levy, seizures
the IRS does not agree with their
position.
Examinations pervisor. and sales, and release of
property.
5. The Right to Appeal an IRS
(Audits) Repeat examinations. If we ex-
amined your return for the same • IRS certification to the State
Decision in an Independent Fo- We accept most taxpayers’ returns items in either of the 2 previous Department of a seriously de-
rum. Taxpayers are entitled to a as filed. If we inquire about your re- years and proposed no change to linquent tax debt, which will
fair and impartial administrative ap- turn or select it for examination, it your tax liability, contact us as soon generally result in denial of a
peal of most IRS decisions, includ- does not suggest that you are disas possible so we can see if we passport application and may
ing many penalties, and have the honest. The inquiry or examination should discontinue the examina- lead to revocation of a pass-
right to receive a written response may or may not result in more tax. tion. port.
regarding the IRS Independent Of- We may close your case without Your collection appeal rights
fice of Appeals' decision. Taxpay-
ers generally have the right to take
change; or, you may receive a re-
fund.
Appeals are explained in detail in Pub.
1660, Collection Appeal Rights.
their cases to court. The process of selecting a re- If you do not agree with the exam- Innocent spouse relief. Gener-
6. The Right to Finality. Taxpay- turn for examination usually begins iner's proposed changes, you can
in one of two ways. First, we use ally, both you and your spouse are
ers have the right to know the max- appeal them to the IRS Independ- each responsible for paying the full
imum amount of time they have to computer programs to identify re- ent Office of Appeals. Most differ-
turns that may have incorrect amount of tax, interest, and penal-
challenge the IRS’s position as well ences can be settled without ex- ties due on your joint return. How-
as the maximum amount of time amounts. These programs may be pensive and time-consuming court
based on information returns, such ever, if you qualify for innocent
the IRS has to audit a particular tax trials. Your appeal rights are ex- spouse relief, you may be relieved
year or collect a tax debt. Taxpay- plained in detail in both Pub. 5,

of part or all of the joint liability. To
request relief, you must file Form
sons, you have a right to request a
list of those contacted. Your re-
Taxpayer Advocate How To Get Tax Help.
8857, Request for Innocent quest can be made by telephone, Service (TAS) • Forms and Publications:
IRS.gov/Forms and
Spouse Relief. For more informa- in writing, or during a personal in- IRS.gov/OrderForms.
tion on innocent spouse relief, see terview. TAS is an independent organiza-
Pub. 971, Innocent Spouse Relief, tion within the IRS that can help • Small Business Ombudsman:
and Form 8857. protect your taxpayer rights. They A small business entity can
Refunds can offer you help if your tax prob- participate in the regulatory
Potential third-party contacts. lem is causing a hardship, or process and comment on en-
Generally, the IRS will deal directly You may file a claim for refund if
you've tried but haven't been able forcement actions of the IRS
with you or your duly authorized you think you paid too much tax.
to resolve your problem with the by calling 888-REG-FAIR.
representative. However, we some- You must generally file the claim
IRS. If you qualify for their assis- • Treasury Inspector General for
times talk with other persons if we within 3 years from the date you
tance, which is always free, will do Tax Administration: You can
need information that you have filed your original return or 2 years
everything possible to help you. Go confidentially report miscon-
been unable to provide, or to verify from the date you paid the tax,
to TaxpayerAdvocate.IRS.gov or duct, waste, fraud, or abuse
information we have received. If we whichever is later. The law gener-
call 877-777-4778. by an IRS employee by calling
do contact other persons, such as ally provides for interest on your re-
a neighbor, a bank, an employer, or fund if it is not paid within 45 days 800-366-4484. People who
employees, we will generally need of the date you filed your return or Tax Information are deaf, hard of hearing, or
to tell them limited information, claim for refund. Pub. 556, has have a speech disability and
such as your name. The law pro- more information on refunds. The IRS provides the following who have access to TTY/TDD
hibits us from disclosing any more If you were due a refund but you sources for forms, publications, equipment can call
information than is necessary to did not file a return, you must gen- and additional information. 800-877-8339. You can re-
obtain or verify the information we erally file your return within 3 years main anonymous.
are seeking. Our need to contact from the date the return was due
• Internet: IRS.gov.
other persons may continue as (including extensions) to get that • Tax Questions:
long as there is activity in your refund. IRS.gov/Help/Tax-Law-
case. If we do contact other per- Questions and
How To Get Tax Help

If you have questions about a tax preparation, e-filing, and di- Also, the IRS offers Free Getting answers to your
issue; need help preparing your tax rect deposit or payment op- Fillable Forms, which can be tax questions. On
return; or want to download free tions. completed online and then IRS.gov, you can get
publications, forms, or instructions, e-filed regardless of income. up-to-date information on current
• VITA. The Volunteer Income
go to IRS.gov to find resources that events and changes in tax law.
Tax Assistance (VITA) pro- Using online tools to help pre-
can help you right away. gram offers free tax help to pare your return. Go to IRS.gov/ • IRS.gov/Help: A variety of
Preparing and filing your tax re- people with low-to-moderate Tools for the following. tools to help you get answers
turn. After receiving all your wage incomes, persons with disabil- to some of the most common
ities, and limited-Eng-
• The Earned Income Tax Credit
and earnings statements (Forms tax questions.
Assistant (IRS.gov/
W-2, W-2G, 1099-R, 1099-MISC, lish-speaking taxpayers who
need help preparing their own
EITCAssistant) determines if • IRS.gov/ITA: The Interactive
1099-NEC, etc.); unemployment you’re eligible for the earned Tax Assistant, a tool that will
compensation statements (by mail tax returns. Go to IRS.gov/
income credit (EIC). ask you questions and, based
or in a digital format) or other gov- VITA, download the free
on your input, provide an-
ernment payment statements IRS2Go app, or call • The Online EIN Application
(IRS.gov/EIN) helps you get swers on a number of tax top-
(Form 1099-G); and interest, divi- 800-906-9887 for information
an employer identification ics.
dend, and retirement statements on free tax return preparation.
from banks and investment firms • TCE. The Tax Counseling for
number (EIN) at no cost. • IRS.gov/Forms: Find forms, in-
(Forms 1099), you have several op- structions, and publications.
the Elderly (TCE) program of- • The Tax Withholding
tions to choose from to prepare You will find details on the
fers free tax help for all tax- Estimator (IRS.gov/W4App)
and file your tax return. You can most recent tax changes and
payers, particularly those who makes it easier for you to esti-
prepare the tax return yourself, see interactive links to help you
are 60 years of age and older. mate the federal income tax
if you qualify for free tax prepara- find answers to your ques-
TCE volunteers specialize in you want your employer to
tion, or hire a tax professional to tions.
answering questions about withhold from your paycheck.
prepare your return. pensions and retirement-rela- This is tax withholding. See • You may also be able to ac-
Free options for tax preparation. ted issues unique to seniors. how your withholding affects cess tax information in your
Your options for preparing and fil- Go to IRS.gov/TCE or down- your refund, take-home pay, or e-filing software.
ing your return online or in your lo- load the free IRS2Go app for tax due.
cal community, if you qualify, in- information on free tax return • The First-Time Homebuyer Need someone to prepare your
clude the following. preparation. Credit Account Look-up tax return? There are various
• Free File. This program lets • MilTax. Members of the U.S. (IRS.gov/HomeBuyer) tool types of tax return preparers, in-
you prepare and file your fed- Armed Forces and qualified provides information on your cluding enrolled agents, certified
eral individual income tax re- veterans may use MilTax, a repayments and account bal- public accountants (CPAs), ac-
turn for free using software or free tax service offered by the ance. countants, and many others who
Free File Fillable Forms. How- Department of Defense don’t have professional credentials.
• The Sales Tax Deduction If you choose to have someone
ever, state tax preparation through Military OneSource. Calculator (IRS.gov/SalesTax)
may not be available through For more information, go to prepare your tax return, choose
figures the amount you can
Free File. Go to IRS.gov/ MilitaryOneSource claim if you itemize deduc-
FreeFile to see if you qualify (MilitaryOneSource.mil/ tions on Schedule A (Form
for free online federal tax MilTax). 1040).

that preparer wisely. A paid tax pre- Free Over-the-Phone Interpreter cess information about your federal nels to request or verify per-
parer is: (OPI) Service. The IRS is com- tax account. sonal or financial information.
mitted to serving taxpayers with This includes requests for per-
• Primarily responsible for the • View the amount you owe and
limited-English proficiency (LEP) sonal identification numbers
overall substantive accuracy a breakdown by tax year.
by offering OPI services. The OPI (PINs), passwords, or similar
of your return,
Service is a federally funded pro- • See payment plan details or information for credit cards,
• Required to sign the return, gram and is available at Taxpayer apply for a new payment plan. banks, or other financial ac-
and Assistance Centers (TACs), most counts.
• Make a payment or view 5
• Required to include their pre- IRS offices, and every VITA/TCE years of payment history and • Go to IRS.gov/IdentityTheft,
parer tax identification number tax return site. The OPI Service is any pending or scheduled the IRS Identity Theft Central
(PTIN). accessible in more than 350 lan- payments. webpage, for information on
guages.
Although the tax preparer • Access your tax records, in- identity theft and data security
always signs the return, Accessibility Helpline available cluding key data from your protection for taxpayers, tax
!
CAUTION you're ultimately responsi- for taxpayers with disabilities. most recent tax return, and professionals, and busi-
ble for providing all the information Taxpayers who need information transcripts. nesses. If your SSN has been
required for the preparer to accu- about accessibility services can lost or stolen or you suspect
call 833-690-0598. The Accessibil- • View digital copies of select you’re a victim of tax-related
rately prepare your return and for notices from the IRS.
the accuracy of every item reported ity Helpline can answer questions identity theft, you can learn
on the return. Anyone paid to pre- related to current and future acces- • Approve or reject authoriza- what steps you should take.
pare tax returns for others should sibility products and services avail- tion requests from tax profes- • Get an Identity Protection PIN
have a thorough understanding of able in alternative media formats sionals. (IP PIN). IP PINs are six-digit
tax matters. For more information (for example, braille, large print, au-
• View your address on file or numbers assigned to taxpay-
on how to choose a tax preparer, dio, etc.). The Accessibility Help- ers to help prevent the misuse
manage your communication
go to Tips for Choosing a Tax line does not have access to your of their SSNs on fraudulent
preferences.
Preparer on IRS.gov. IRS account. For help with tax law, federal income tax returns.
refunds, or account-related issues, Get a transcript of your return. When you have an IP PIN, it
go to IRS.gov/LetUsHelp. With an online account, you can prevents someone else from
Employers can register to use access a variety of information to filing a tax return with your
Business Services Online. The Note. Form 9000, Alternative help you during the filing season. SSN. To learn more, go to
Social Security Administration Media Preference, or Form You can get a transcript, review IRS.gov/IPPIN.
(SSA) offers online service at 9000(SP) allows you to elect to re- your most recently filed tax return,
SSA.gov/employer for fast, free, ceive certain types of written corre- and get your adjusted gross in- Ways to check on the status of
and secure W-2 filing options to spondence in the following formats. come. Create or access your on- your refund.
CPAs, accountants, enrolled line account at IRS.gov/Account.
• Standard Print. • Go to IRS.gov/Refunds.
agents, and individuals who proc-
ess Form W-2, Wage and Tax • Large Print. Tax Pro Account. This tool lets • Download the official IRS2Go
Statement, and Form W-2c, Cor- your tax professional submit an au- app to your mobile device to
• Braille. thorization request to access your check your refund status.
rected Wage and Tax Statement.
• Audio (MP3). individual taxpayer IRS online ac-
IRS social media. Go to IRS.gov/ count. For more information, go to • Call the automated refund hot-
SocialMedia to see the various so- • Plain Text File (TXT). IRS.gov/TaxProAccount. line at 800-829-1954.
cial media tools the IRS uses to • Braille Ready File (BRF).
Using direct deposit. The safest The IRS can’t issue re-
share the latest information on tax funds before mid-February
changes, scam alerts, initiatives, Disasters. Go to IRS.gov/ and easiest way to receive a tax re- !
CAUTION for returns that claimed the
products, and services. At the IRS, DisasterRelief to review the availa- fund is to e-file and choose direct
ble disaster tax relief. deposit, which securely and elec- EIC or the additional child tax
privacy and security are our high- credit (ACTC). This applies to the
est priority. We use these tools to tronically transfers your refund di-
Getting tax forms and publica- entire refund, not just the portion
share public information with you. rectly into your financial account.
tions. Go to IRS.gov/Forms to associated with these credits.
Don’t post your social security Direct deposit also avoids the pos-
view, download, or print all the
number (SSN) or other confidential sibility that your check could be
forms, instructions, and publica- Making a tax payment. Pay-
information on social media sites. lost, stolen, destroyed, or returned
tions you may need. Or, you can go ments of U.S. tax must be remitted
Always protect your identity when undeliverable to the IRS. Eight in
to IRS.gov/OrderForms to place an to the IRS in U.S. dollars. Digital
using any social networking site. 10 taxpayers use direct deposit to
order. assets are not accepted. Go to
receive their refunds. If you don’t
The following IRS YouTube IRS.gov/Payments for information
Getting tax publications and in- have a bank account, go to
channels provide short, informative on how to make a payment using
structions in eBook format. IRS.gov/DirectDeposit for more in-
videos on various tax-related top- any of the following options.
Download and view most tax publi- formation on where to find a bank
ics in English, Spanish, and ASL.
cations and instructions (including or credit union that can open an ac- • IRS Direct Pay: Pay your indi-
• Youtube.com/irsvideos. the Instructions for Form 1040) on count online. vidual tax bill or estimated tax
• Youtube.com/ mobile devices as eBooks at payment directly from your
Reporting and resolving your
irsvideosmultilingua. IRS.gov/eBooks. checking or savings account
tax-related identity theft issues.
IRS eBooks have been tested at no cost to you.
• Youtube.com/irsvideosASL. using Apple's iBooks for iPad. Our • Tax-related identity theft hap-
pens when someone steals
• Debit Card, Credit Card, or
Watching IRS videos. The IRS eBooks haven’t been tested on Digital Wallet: Choose an ap-
Video portal (IRSVideos.gov) con- other dedicated eBook readers, your personal information to
proved payment processor to
tains video and audio presenta- and eBook functionality may not commit tax fraud. Your taxes
pay online or by phone.
tions for individuals, small busi- operate as intended. can be affected if your SSN is
nesses, and tax professionals. used to file a fraudulent return • Electronic Funds Withdrawal:
Access your online account (in- or to claim a refund or credit. Schedule a payment when fil-
Online tax information in other dividual taxpayers only). Go to ing your federal taxes using
languages. You can find informa- IRS.gov/Account to securely ac- • The IRS doesn’t initiate con- tax return preparation soft-
tact with taxpayers by email,
tion on IRS.gov/MyLanguage if ware or through a tax profes-
text messages (including
English isn’t your native language. sional.
shortened links), telephone
calls, or social media chan-

• Electronic Federal Tax Understanding an IRS notice or rights. TAS strives to ensure that • Download Pub. 1546, The
Payment System: Best option letter you’ve received. Go to every taxpayer is treated fairly and Taxpayer Advocate Service Is
for businesses. Enrollment is IRS.gov/Notices to find additional that you know and understand your Your Voice at the IRS, availa-
required. information about responding to an rights under the Taxpayer Bill of ble at IRS.gov/pub/irs-pdf/
IRS notice or letter. Rights. p1546.pdf;
• Check or Money Order: Mail
your payment to the address Responding to an IRS notice or • Call the IRS toll free at
listed on the notice or instruc- letter. You can now upload re- How Can You Learn 800-TAX-FORM
tions. sponses to all notices and letters About Your Taxpayer (800-829-3676) to order a
using the Document Upload Tool. Rights? copy of Pub. 1546;
• Cash: You may be able to pay
your taxes with cash at a par- For notices that require additional • Check your local directory; or
The Taxpayer Bill of Rights de-
ticipating retail store. action, taxpayers will be redirected
scribes 10 basic rights that all tax- • Call TAS toll free at
appropriately on IRS.gov to take
• Same-Day Wire: You may be payers have when dealing with the 877-777-4778.
further action. To learn more about
able to do same-day wire from IRS. Go to
the tool, go to IRS.gov/Upload.
your financial institution. Con- TaxpayerAdvocate.IRS.gov to help
you understand what these rights How Else Does TAS Help
tact your financial institution Note. You can use Sched-
for availability, cost, and time mean to you and how they apply. Taxpayers?
ule LEP (Form 1040), Request for
frames. These are your rights. Know them. TAS works to resolve large-scale
Change in Language Preference,
Use them. problems that affect many taxpay-
to state a preference to receive no-
Note. The IRS uses the latest tices, letters, or other written com- ers. If you know of one of these
encryption technology to ensure munications from the IRS in an al- What Can TAS Do for broad issues, report it to TAS at
that the electronic payments you IRS.gov/SAMS. Be sure to not in-
ternative language. You may not You?
make online, by phone, or from a immediately receive written com- clude any personal taxpayer infor-
mobile device using the IRS2Go TAS can help you resolve problems mation.
munications in the requested lan-
app are safe and secure. Paying that you can’t resolve with the IRS.
guage. The IRS’s commitment to And their service is free. If you
electronically is quick, easy, and
faster than mailing in a check or
LEP taxpayers is part of a qualify for their assistance, you will Low Income
multi-year timeline that began pro-
money order. viding translations in 2023. You will
be assigned to one advocate who
will work with you throughout the
Taxpayer Clinics
What if I can’t pay now? Go to continue to receive communica- process and will do everything pos- (LITCs)
IRS.gov/Payments for more infor- tions, including notices and letters, sible to resolve your issue. TAS can
mation about your options. in English until they are translated LITCs are independent from the
help you if:
to your preferred language. IRS and TAS. LITCs represent indi-
• Apply for an online payment • Your problem is causing finan- viduals whose income is below a
agreement (IRS.gov/OPA) to Contacting your local TAC. cial difficulty for you, your fam- certain level and who need to re-
meet your tax obligation in Keep in mind, many questions can ily, or your business; solve tax problems with the IRS.
monthly installments if you be answered on IRS.gov without
• You face (or your business is LITCs can represent taxpayers in
can’t pay your taxes in full to- visiting a TAC. Go to IRS.gov/
facing) an immediate threat of audits, appeals, and tax collection
day. Once you complete the LetUsHelp for the topics people
adverse action; or disputes before the IRS and in
online process, you will re- ask about most. If you still need
court. In addition, LITCs can pro-
ceive immediate notification of help, TACs provide tax help when a • You’ve tried repeatedly to con- vide information about taxpayer
whether your agreement has tax issue can’t be handled online or tact the IRS but no one has re- rights and responsibilities in differ-
been approved. by phone. All TACs now provide sponded, or the IRS hasn’t re- ent languages for individuals who
service by appointment, so you’ll sponded by the date
• Use the Offer in Compromise know in advance that you can get
speak English as a second lan-
promised. guage. Services are offered for free
Pre-Qualifier to see if you can the service you need without long
settle your tax debt for less or a small fee. For more information
wait times. Before you visit, go to
than the full amount you owe. IRS.gov/TACLocator to find the
How Can You Reach TAS? or to find an LITC near you, go to
For more information on the the LITC page at
nearest TAC and to check hours, TAS has offices in every state, the
Offer in Compromise program, TaxpayerAdvocate.IRS.gov/LITC or
available services, and appoint- District of Columbia, and Puerto
go to IRS.gov/OIC. see IRS Pub. 4134, Low Income
ment options. Or, on the IRS2Go Rico. To find your advocate’s num-
Taxpayer Clinic List, at
Filing an amended return. Go to app, under the Stay Connected ber:
IRS.gov/pub/irs-pdf/p4134.pdf.
IRS.gov/Form1040X for information tab, choose the Contact Us option • Go to
and updates. and click on “Local Offices.” TaxpayerAdvocate.IRS.gov/
Checking the status of your Contact-Us;
amended return. Go to IRS.gov/ The Taxpayer
WMAR to track the status of Form
1040-X amended returns.
Advocate Service
It can take up to 3 weeks
(TAS) Is Here To
! from the date you filed Help You
CAUTION your amended return for it
to show up in our system, and pro-

What Is TAS?
cessing it can take up to 16 weeks. TAS is an independent organiza-
tion within the IRS that helps tax-
payers and protects taxpayer

To help us develop a more useful index, please let us know if you have ideas for index entries.
Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
Distribution required at age Assistance (See Tax help) Reimbursements 39, 47

10% tax for early withdrawal from 72 86, 88 Assistance, tax (See Tax help) Returning excess business
IRA or retirement plan Roth IRAs 89, 92 ATIN (Adoption taxpayer expenses 39
(See Early withdrawal from Standard deduction for age 65 or identification number) 13 Business tax credits:
deferred interest account, older 93
subheading: Tax on) Attachment of wages 13 Claim for refund 20
Age test 28 Attachments to return 14
2023 Tax Rate Schedules 125
Agents: Attorney contingency fee: C
401(k) plans:
Income paid to 13 As income 75
Tax treatment of contributions 50 Cafeteria plans 53
Signing return 15 Attorney fees, whistleblower
403(b) plans: Calendar year taxpayers:
Agricultural workers (See Farmers) awards:
Rollovers 85, 91 Accounting periods 11, 13, 48
Agriculture (See Farming) As income 75
529 plans (See Qualified tuition Filing due date 11
programs) Alaska Permanent Fund Attorneys' fees 103, 104
dividends 74 Automatic extension of time to California Nonoccupational
59 1/2 rule: Disability Benefit Fund 98
Alaska Unemployment file 11
Age 59 1/2 rule 88 Compensation Fund 98 Campaign contributions 74
Form 4868 11
60-day rule 84 Alcoholic beverages: Presidential Election Campaign
Awards (See Prizes and awards)
72 rule: IRA prohibited transactions in 87 Fund 14
Age 72 rule 86 Aliens: Campaign expenses 104
B Canada:
Dual-status (See Dual-status
A taxpayers) Babysitting 47 Resident of 28, 34
Filing required 8 Back pay, award for 47 Cancellation of debt 68
Abroad, citizens traveling or
working 8, 52 Nonresident (See Nonresident Emotional distress damages Exceptions to treatment as
(See also Foreign employment) aliens) under title VII of Civil Rights income 68
Resident (See Resident aliens) Act of 1964 75 Capital assets:
Absence, temporary 29, 34
Alimony: Backup withholding 40, 44, 55 Coal and iron ore 72
Accelerated death benefits 70
Reporting of income 74 Penalties 41 Capital expenses 36
Accident insurance 48
Alternative filing methods: Bad debts: Capital gains or losses:
Cafeteria plans 53
Electronic (See E-file) Claim for refund 19 Hobbies, sales from
Long-term care 48, 53
Alternative minimum tax Recovery 71 collections 76
Accidental death benefits 49
(AMT) 108 Balance due 108 Sale of personal items 77
Accounting methods 13
Ambulance service personnel: Bankruptcy: Carpools 74
Accrual method (See Accrual
method taxpayers) Life insurance proceeds when Canceled debt not deemed to be Carrybacks:
death in line of duty 70 income 69 Business tax credit
Cash method (See Cash method
taxpayers) Amended returns 18, 19 Banks: carrybacks 20
(See also Form 1040-X) IRAs with 79 Cars 50, 77
Accounting periods 13
Itemized deduction, change to Barter income 67 (See also Travel and transportation)
Calendar year 11, 13, 48 standard deduction 95 Definition of bartering 67 Personal property taxes on,
Change in, standard deduction Standard deduction, change to deduction of 101
not allowed 93 Form 1099-B 68
itemized deductions 95 Cash:
Fiscal year 13, 42 Basis:
American citizens abroad 8 Rebates 74
Fringe benefits 48 (See also Citizens outside U.S.) Cost basis:
IRAs for nondeductible Cash method taxpayers 13
Accrual method taxpayers 13 Employment (See Foreign
contributions 83, 86 Real estate transactions, tax
Taxes paid during tax year, employment) allocation 98
deduction of 97 American Indians (See Indians) Beneficiaries 75
(See also Estate beneficiaries) Taxes paid during tax year,
Accuracy-related penalties 20 American Samoa: deduction of 97
(See also Trust beneficiaries)
Activities not for profit 74 Income from 8 Cash rebates 74
Bequests 75, 76
Address 17 Annuities: (See also Estate beneficiaries) Casualty insurance:
Change of 18 Decedent's unrecovered (See also Inheritance) Reimbursements from 74
Foreign 17 investment in 14 Birth of child 29 Casualty losses 102, 105
P.O. box 17 IRAs as 79 Head of household, qualifying Certificates of deposit (CDs) 61,
Adjusted gross income (AGI): Unrecovered investment 106 person to file as 25 78
Modified (See Modified adjusted Withholding 14, 40 Social security number to be (See also Individual retirement
gross income (MAGI)) Annulled marriages: obtained 37 arrangements (IRAs))
Retirement savings contribution Filing status 22 Birth of dependent 34 Change of address 18
credit 23 Anthrax incidents (See Terrorist Blind persons: Change of name 13, 44
Adjustments 108 attacks) Exemption from withholding 39 Chaplains:
Administrators, estate Antiques (See Collectibles) Standard deduction for 93, 94 Life insurance proceeds when
(See Executors and Appraisal fees 102 Bonds: death in line of duty 70
administrators) Charitable contributions:
Archer MSAs 76 Amortization of premium 105
Adopted child 28, 34, 37 Gifts to reduce public debt 17
Contributions 48 Issued at discount 60
Adoption: Charitable distributions,
Armed Forces: Original issue discount 60
ATIN 13 qualified 86
Combat zone: Sale of 60
Child tax credit 110 Check-writing fees 104
Extension to file return 12 Savings 57
Credits: Checks:
Signing return for spouse 23 Tax-exempt 60
Married filing separately 23 Constructive receipt of 13
Dependency allotments 35 Bonuses 39, 47, 77
Employer assistance 49 Child and dependent care credit:
Disability pay 52 Bookkeeping (See Recordkeeping
Taxpayer identification requirements) Married filing separately 23
number 13, 37 Disability pensions 53
GI Bill benefits 36 Breach of contract: Child born alive 29
Age: Child care:
Military quarters allotments 35 Damages as income 75
Children's investments Babysitting 47
(See Children, subheading: Real estate taxes when receiving Bribes 74, 103
Investment income of child housing allowance 99 Brokers: Care providers 47
under age 18) Rehabilitative program IRAs with 79 Expenses 36
Gross income and filing payments 52 Commissions 79, 80 Child custody 29
requirements (Table 1-1) 6 Retiree's pay withholding 38 Burial: Child support 75
IRAs: Retirees' pay: Expenses 103 Child tax credit 8, 27, 109-111
Distribution prior to age Taxable income 52 Business expenses: Claiming the credit 111
59 1/2 88 Wages 52 Job search expenses 76 Limit on credit 111

Child tax credit (Cont.)
Limits 23 Signing return for spouse 23 Earned income (See Earned Married, filing joint return 28, 30
Married filing separately 23 Commissions 39 income credit) Qualifying child 28
Child, qualifying 28 Advance 47 Lifetime learning (See Lifetime Qualifying relative 33
Children 49 IRAs with brokers 79, 80 learning credit) Social security number 13
(See also Adoption) Sharing of (kickbacks) 76 Custodial fees 103 Adoption taxpayer
Additional child tax credit 111 Unearned, deduction for Custody of child 29 identification number 13,
Adoption (See Adopted child) repayment of 47 37
Babysitters 47 Common law marriage 22 D Alien dependents 37
Birth of child: Community property 7, 58 Standard deduction for 94
Damages from lawsuits 75 Dependents not allowed to claim
Head of household, qualifying IRAs 79
person to file as 25 Dating your return 14 dependents 27
Married filing separately 24
Social security number to be Daycare centers 47 Depletion allowance 72
Commuting expenses 104 (See also Child care)
obtained 37 Employer-provided commuter Deposits:
Care providers 47 De minimis benefits 49 Loss on 103
vehicle 50
(See also Child care) Deadlines (See Due dates) Depreciation:
Compensation 47
Credit for 8 (See also Wages and salaries) Death (See Decedents) Home computer 103
(See also Child tax credit) Defined for IRA purposes 79 Death benefits: Differential wage payments 48
Custody of 29 Defined for Roth IRA Accelerated 70 Differential wages:
Death of child: purposes 89 Life insurance proceeds (See Life Wages for reservists:
Head of household, qualifying Employee 47 insurance)
Military reserves 52
person to file as 25 Miscellaneous compensation 47 Public safety officers who died or
were killed in line of duty, tax Direct deposit of refunds 15
Dividends of (See this heading: Nonemployee 75
Investment income of child exclusion 70 Directors' fees 75
under age 18) Unemployment 73 Death of child 29 Disabilities, persons with:
Earnings of 8 Computation of tax 14 Death of dependent 34 Accrued leave payment 53
Filing requirements 8 Equal amounts 14 Debt instruments (See Bonds or Armed Forces 52
As dependents (Table 1-2) 7 Negative amounts 14 Notes) Blind (See Blind persons)
Gifts to 55 Rounding off dollars 14 Debts 19, 71 Cafeteria plans 53
Investment income of child under Confidential information: (See also Bad debts) Credit for (See Elderly or
age 18: Privacy Act and paperwork Canceled (See Cancellation of disabled, credit for)
Dependent filing requirements reduction information 3 debt) Insurance costs 53
(Table 1-2) 7 Constructive receipt of Nonrecourse 68 Military and government
Interest and dividends 8 income 13, 61 Paid by another 13 pensions 53
Parents' election to report on Contributions 17, 74 Public, gifts to reduce 17 Public assistance benefits 73
Form 1040 or 1040-SR 8 (See also Campaign contributions) Recourse 68 Reporting of disability pension
(See also Charitable contributions) income 53
Kidnapped 29, 33 Refund offset against 10, 15
Nontaxable combat pay 79 Retirement, pensions, and
Signing return, parent for child 15 Deceased taxpayers
Political 104 (See Decedents) profit-sharing plans 53
Standard deduction for 93, 94
Reservist repayments 79 Decedents 7 Signing of return by
Stillborn 29
Convenience fees 102 (See also Executors and court-appointed
Support of (See Child support) representative 15
Conversion (See specific retirement administrators)
Tax credit (See Child tax credit) or IRA plan) Social security and railroad
Deceased spouse 7
Transporting school children 77 Cooperative housing: retirement benefits,
Due dates 11
Unearned income of 55 Real estate taxes, deduction deductions for 66
Filing requirements 7
Chronic illness: of 98 Workers' compensation 54
Savings bonds 58
Accelerated payment of life Taxes that are deductible Disabled:
insurance proceeds Spouse's death 22
(Table 11-1) 100 Child 29
(See Accelerated death Standard deduction 93
Copyrights: Dependent 34
benefits) Declaration of rights of taxpayers:
Infringement damages 75 Disaster Assistance Act of 1988:
Long-term care (See Long-term IRS request for information 3
care insurance contracts) Royalties 72 Withholding 40
Deductions 71, 93
Citizen or resident test 28 Corporations 71 (See also Recovery of amounts Disaster relief 53, 74
(See also S corporations) previously deducted) (See also Terrorist attacks)
Citizens outside U.S.:
Director fees as self-employment Casualty losses 105 Disaster Relief and Emergency
Earned income exclusion 3 income 75 Assistance Act:
Employment (See Foreign Changing claim after filing, need
Corrections (See Errors) to amend 19 Grants 74
employment)
Cost basis: Itemizing (See Itemized Unemployment assistance 73
Extension of time to file 11
IRAs for nondeductible deductions) Grants or payments 74
Filing requirements 8 contributions 83, 86 Pass-through entities 103 Disclosure statement 20
Withholding from IRA Cost-of-living allowances 48
distributions 87 Repayments 72 Discount, bonds and notes issued
Coupon bonds 61 Social security and railroad at 60
Civil suits 75
(See also Damages from lawsuits) Court awards and damages retirement benefits 66 Distributions:
(See Damages from lawsuits) Standard deduction 93, 95 Qualified charitable 86
Civil tax penalties (See Penalties)
Cousin 34 Student loan interest deduction Required minimum
Clergy 8
Credit cards: (See Student loans) distributions 84, 86
Housing 51 (See also Individual retirement
Benefits, taxability of Theft loss 105
Real estate taxes when insurance 75 arrangements (IRAs))
receiving housing Deferred compensation:
Payment of taxes 3 Dividends:
allowance 99 Limit 50
Credit for child and dependent Alaska Permanent Fund
Life insurance proceeds when Nonqualified plans 48 (See Alaska Permanent Fund
chaplain died in line of care expenses 109
Delinquent taxes: dividends)
duty 70 Credit for other dependents 109,
111 Real estate transactions, tax Fees to collect 103
Pensions 51 allocation 99
Claiming the credit 111 Stockholder debts when canceled
Special income rules 51 Delivery services 11 as 68
Clerical help, deductibility of 102 Limit on credit 111
Dependent taxpayer test 27 Divorced parents 29, 33
Coal and iron ore 72 Qualifying person 111
Dependents 8, 26 Divorced taxpayers 74
Collectibles: Credit for the elderly or the (See also Child tax credit)
disabled 109 (See also Alimony)
IRA investment in 87 Birth of 34 Child custody 29
Credit or debit cards:
Colleges and universities: Born and died within year 13, 37 Estimated tax payments 45
Payment of taxes 11
Education costs 77 Death of 34 Filing status 22
(See also Qualified tuition Credits 107, 109
Filing requirements 8 IRAs 80, 85
programs) American opportunity 23
Earned income, unearned Real estate taxes, allocation
Combat zone: Child tax (See Child tax credit) income, and gross income of 99
Extension to file return 12 Credit for other dependents 109 levels (Table 1-2) 7

Domestic help: Embezzlement: Definition 37 Farmers:
Withholding 38 Reporting embezzled funds 76 Divorced taxpayers 45 Estimated tax 41
Domestic help, can’t be claimed Emergency medical service Figuring amount of tax 42 Withholding 38
as dependent 27 personnel: First period, no income subject to Farming:
Donations (See Charitable Life insurance proceeds when estimated tax in 42 Activity not for profit 74
contributions) death in line of duty 70 Fiscal year taxpayers 42 Canceled debt, treatment of 69
Down payment assistance 75 Emotional distress damages 75 Married taxpayers 42 Federal employees:
Dual-status taxpayers 8 Employee benefits 48, 49 Name change 44 Accrued leave payment 48
Joint returns not available 23 (See also Fringe benefits) Not required 41 Cost-of-living allowances 48
Standard deduction 93 Employee business expenses: Overpayment applied to 15 Disability pensions 53
Due dates 10, 11 Reimbursements 39, 47 Payment vouchers 43 Based on years of service 53
2020 dates (Table 1-5) 11 Returning excess 39 Payments 16, 43 Exclusion, conditions for 53
Extension (See Extension of time Employee expenses: Figuring amount of each Terrorist attack 53
to file) Home computer 103 payment 42 FECA payments 54
Nonresident aliens' returns 11 Miscellaneous 102 Schedule 42 Federal Employees'
Dues: Employees 39, 48, 49 When to start 42 Compensation Act (FECA)
Club 104 (See also Fringe benefits) Who must make 41 payments 54
Dwelling units: Awards for service 47 Penalty for underpayment 37, 43, Federal government:
Cooperative (See Cooperative Business expenses 45 Employees (See Federal
housing) (See Employee business Saturday, Sunday, holiday rule 42 employees)
expenses)
Separate returns 44 Federal income tax:
Form W-4 to be filled out when
E starting new job 39 Social security or railroad Not deductible 101
retirement benefits 64 Deductibility (Table 11-1) 100
E-file 3, 6, 8 Fringe benefits 39
State and local income taxes, Federal judges:
Extensions of time to file 11 Jury duty pay 76 deduction of 97
Overseas employment Employer retirement plan
On time filing 11 Unemployment compensation 73 coverage 80
Early withdrawal from deferred (See Foreign employment)
Excise taxes 86 Fees 75
interest account: Employers: (See also Penalties) (See also specific types of
Higher education expenses, E-file options 10 Deductibility (Table 11-1) 100 deductions and income)
exception from penalty 78 Educational assistance from IRAs for failure to take minimum Professional license 104
IRAs: (See Educational assistance) distributions 86 Fellowships (See Scholarships and
Early distributions, defined 88 Form W-4, having new employees Roth IRAs 91 fellowships)
Penalties 86, 88 fill out 39
Exclusions from gross income: FICA withholding 12, 37, 48
Earned income: Overseas employment (See also Social security and
(See Foreign employment) Accelerated death benefits 70
Defined: Canceled debt 69 Medicare taxes)
Withholding rules 39 (See also Withholding)
For purposes of standard Commuting benefits for
deduction 94 Employment: Fiduciaries 7, 79, 80
employees 50
Dependent filing requirements Agency fees 75 (See also Executors and
De minimis benefits 49 administrators)
(Table 1-2) 7 Taxes 48
(See also Social security and Disability pensions of federal (See also Trustees)
Earned income credit 109 employees and military 53
Medicare taxes) Fees for services 75
Filing claim 8 Education Savings Bond
FICA withholding 12 Prohibited transactions 87
Married filing separately 23 (See also Withholding) Program 76
Figuring taxes and credits 63, 107
Education: Employment taxes 37, 38, 44 Educational assistance from (See also Worksheets)
Savings bond program 59 employer 49
Endowment proceeds 70 Filing requirements 6-21, 23
Education credits: Elective deferrals, limit on (See also Married filing separately)
Energy assistance 74 exclusion 50
Married filing separately 23 Energy conservation: Calendar year filers 11
Education expenses: Employee awards 47
Measures and modifications 75 Citizens outside U.S. 8
Employer-provided Energy conservation
Subsidies 75 subsidies 75, 78 Dependents 7, 8
(See Educational assistance) Electronic (See E-file)
Utility rebates 78 Foreign earned income 3
Tuition (See Qualified tuition Extensions 11
programs) Equitable relief (See Innocent Frozen deposit interest 76
spouse relief) Group-term life insurance 50 Gross income levels
Educational assistance: (Table 1-1) 6
Errors: Long-term care insurance
Employer-provided 49 Individual taxpayers 7
Corrected wage and tax contracts 53, 54
Scholarships (See Scholarships statement 44 Joint filing 22, 23
and fellowships) Parking fees,
Discovery after filing, need to employer-provided 50 (See also Joint returns)
Tuition (See Qualified tuition amend return 18 Late filing penalties
programs) Public safety officers who died or
Refunds 18 were killed in line of duty, (See Penalties)
EIC (See Earned income credit) Most taxpayers (Table 1-1) 6
Escrow: death benefits 70
Elderly or disabled, credit for: Unmarried persons (See Single
Taxes placed in, when Sale of home 77
Married filing separately 23 deductible 99 taxpayers)
Scholarships 77
Elderly persons: Estate beneficiaries: When to file 11
Strike benefits 77
Credit for (See Elderly or IRAs (See Individual retirement Where to file 17
disabled, credit for) Executors and administrators 7
arrangements (IRAs)) Exempt-interest dividends 56 Who must file 7, 8
Exemption from withholding 39 Losses of estate 75 Filing status 7, 21-25
Home for the aged 35 Exemptions:
Receiving income from estate 75 From withholding 39 Annulled marriages 22
Long-term care (See Long-term Estate tax: Change to, after time of filing 19
care insurance contracts) Expenses paid by another 75
Deduction 101 Extension of time to file 11 Divorced taxpayers 22
Nutrition Program for the
Elderly 74 Estates 75 Automatic 11 Head of household 22, 24
(See also Estate beneficiaries) Qualifying person to file as 24
Standard deduction for age 65 or Citizens outside U.S. 11
older 93 Income 75 Joint returns 22
E-file options 11
Tax Counseling for the Elderly 10 Tax 101, 105 Married filing separately 23
(See also Estate tax) Inclusion on return 11
Election precinct officials: Surviving spouse 22
Estimated: Unmarried persons 7, 22
Fees, reporting of 76 F
Credit for 44 (See also Single taxpayers)
Elective deferrals:
Payment vouchers 43 Failure to comply with tax laws Final return for decedent:
Limits 50
Estimated tax 37 (See Penalties) Standard deduction 93
Electronic filing (See E-file)
Amount to pay to avoid Fair rental value 36 Financial institutions 79
Electronic payment options 3 penalty 42 Family 8, 110 (See also Banks)
Electronic reporting: Avoiding 41 (See also Child tax credit) Financially disabled persons 19
Returns (See E-file) Change in estimated tax 43 (See also Children) Fines 11, 20, 21
Credit for 37, 44 (See also Penalties)

Fines (Cont.)
Deductibility 104 Itemized deduction, change to 8275-R: Schedule A:
Firefighters: standard deduction 95 Regulation disclosure State and local income taxes,
Life insurance proceeds when Standard deduction, change statement 21 deduction of 101
death in line of duty 70 to itemized deductions 95 8379: State benefit funds,
Volunteer firefighters: 1040, Schedule A: Injured spouse claim 15 mandatory contributions
IRAs 81 Unearned commission, 8606: to 98
Fiscal year 13, 42 deduction for repayment IRA contributions, Taxes, deduction of 101
of 47 Nondeductible 78, 83, 87 Schedule C:
Fishermen:
1040, Schedule C: IRA contributions, Real estate or personal
Estimated tax 41
Barter income 67 Recharacterization of 86 property taxes on property
Indian fishing rights 76 used in business,
Child care providers 47 8615 55
Food benefits: deduction of 101
Corporate director fees 75 8814 55
Nutrition program for the Schedule E:
elderly 74 Forgiveness of debts 68 8815 59
Foster-care providers 76 Real estate or personal
Food stamps 35 8818 60 property taxes on rental
Foreign employment 8, 52 Kickbacks 76 8822: property, deduction of 101
Employment abroad 52 Notary fees 76 Change of address 18 Schedule F:
Social security and Medicare Oil, gas, or mineral interest 8839: Real estate or personal
taxes 52 royalties 72 Qualified adoption property taxes on property
U.S. citizen 52 Rental income and expenses 49 used in business,
expenses 72 8853: deduction of 101
Waiver of alien status 52
1040, Schedule E: Accelerated death Self-employment tax, deduction
Foreign governments, employees
of 52 Royalties 72 benefits 70 of 101
Foreign income: 1040, Schedule SE 51 Archer MSAs and long-term Form 1040-ES:
Earned income exclusion 3 1065: care insurance Estimated tax 42, 44
Partnership income 70 contracts 48 Form 1099-K:
Reporting of 3
1098: 8857: Payment card and third-party
Foreign income taxes:
Mortgage interest Innocent spouse relief 23 network transactions 77
Deduction of 98
statement 71 8879: Form 1099-MISC:
Form 1116 to claim credit 101
1099: Authorization for E-file Withheld state and local taxes 97
Schedule A or Form 1040 or provider to use
1040-SR reporting 101 Taxable income report 12 Form 1099-NEC:
1099-B: self-selected PIN 10 Withheld state and local taxes 97
Definition of 97 9465:
Foreign nationals (See Resident Barter income 68 Form 1099-R:
1099-C: Installment agreement Withheld state and local taxes
aliens) request 16
Foreign students 28 Cancellation of debt 68 shown on 97
Form 8919: Form 1099-S:
Forgiveness of debt 1099-DIV:
Uncollected social security Real estate transactions
(See Cancellation of debt) Dividend income and Medicare tax on
Form 11, 51, 63 statement 51 proceeds 99
wages 47
1040 26, 109 1099-G: Form 1116:
RRB-1042S:
Alien taxpayer identification State tax refunds 71 Foreign tax credit 101
Railroad retirement benefits
numbers 37 1099-INT 55, 62 for nonresident aliens 63 Form 8332:
Armed Forces' retirement 1099-MISC: RRB-1099: Release of exemption to
pay 52 Nonemployee noncustodial parent 30
Railroad retirement
Child care providers 47 compensation 75 benefits 62, 63 Form W-2:
Clergy pension 51 1099-OID 61 SS-5: Employer-reported income
Corporate director fees 75 1099-R 59 statement 44
Social security number
Disability retirement pay 53 IRA distributions 87, 89 request 13, 37 Filing with return 44
FECA benefits 54 Life insurance policy SSA-1042S: Separate form from each
surrendered for cash 70 employer 44
Foster-care providers 76 Social security benefits for
Retirement plan nonresident aliens 63 Withheld state and local taxes 97
Kickbacks 76
distributions 14 SSA-1099: Form W-2c:
Notary fees 76
1120S: Social security benefits 62 Corrected wage and tax
Oil, gas, or mineral interest statement 44
royalties 72 S corporation income 71 W-2:
2555 111 Form W-2G:
Rental income and Election precinct officials'
expenses 72 2848: fees 76 Gambling winnings withholding
statement 40, 44
Wages and salary Power of attorney and Employer retirement plan
reporting 47 declaration of participation indicated 80 Withheld state and local taxes
representative 15, 23 shown on 97
Workers' compensation 54 Employer-reported income
3115 58 statement 12, 14, 47, 48, Form W-4:
1040 or 1040-SR:
3800: 51 Employee withholding allowance
Address 17 certificate 38, 39, 41
Attachments to 14 General business credit 20 Fringe benefits 48, 49
W-2G: Form W-4S:
IRAs 87, 89 4506 17
Gambling winnings Sick pay withholding request 40
Presidential Election 4506-T:
withholding statement 76 Form W-4V 40
Campaign Fund 14 Tax return transcript
request 17 W-4V: Unemployment compensation,
Railroad retirement benefits, voluntary withholding
reporting on 64 4868 11, 37 Voluntary withholding
request 73 request 40
Social security benefits, Automatic extension of time to Form(s) 1099 44
reporting on 64 file 11, 37 W-7:
Individual taxpayer Foster care:
Use of 22, 23 Filing electronic form 11
identification number Care providers' payments 76
1040 or 1040-SR, Schedule A: Filing paper form 11
request 37 Child tax credit 110
Charitable contributions 17 5329:
W-7A: Difficulty-of-care payments 76
1040 or 1040-SR, Required minimum
Schedule SE 8 distributions, failure to Adoption taxpayer Emergency foster care,
take 89 identification number maintaining space in home
1040-NR: request 14, 37 for 76
Nonresident alien return 11 56:
Form 1040: Foster care payments and
1040-X: Notice Concerning Fiduciary expenses 30, 35
Relationship 15 Estimated tax payments 44
Amended individual return 19 Gambling winnings 40 Foster child 28, 30, 34, 35
Annulled marriages 22 6251 108
Overpayment offset against next Foster Grandparent Program 52
Change of filing status 24 8275:
year's tax 43 Found property 76
Completing 19 Disclosure statement 20
Form 1040 or 1040-SR: Fraud:
Filing 19 Foreign income taxes, deduction Penalties 20, 39
of 101

Fraud (Cont.)
Reporting anonymously to IRS 3 Income taxes: Effect on deduction if covered
Fringe benefits: H Federal (See Federal income tax) by employer retirement
Accident and health Foreign (See Foreign income plan (Table 9-1) 81
insurance 48 HAMP: taxes) Effect on deduction if not
Accounting period 48 Home affordable modification: State or local (See State or local covered by employer
Pay-for-performance 74 income taxes) retirement plan
Adoption, employer (Table 9-2) 81
assistance 49 Handicapped persons Income-producing expenses 102
(See Disabilities, persons with) Worksheet 9-1 83
Archer MSA contributions 48 Indians:
Head of household 22, 24 Nondeductible contributions 83
De minimis benefits 49 Fishing rights 76
Health: Early withdrawal 88
Education assistance 49 Taxes collected by tribal
Flexible spending governments, deduction of 97 Tax on earnings on 83
Form W-2 48
arrangement 48 Individual retirement Ordinary income, distributions
Group-term life insurance as 86
premiums 49 Health insurance 48 arrangements (IRAs) 78, 84,
(See also Accident insurance) 89 Penalties 87
Holiday gifts 49
Reimbursement arrangement 49 (See also Rollovers) Early distributions (See Early
Retirement planning services 50 (See also Roth IRAs) withdrawal from deferred
Taxable income 48 Savings account 49
Administrative fees 79, 80, 103 interest account)
Transportation 50 Health coverage tax credit 8
Age 59 1/2 for distribution 88 Excess contributions 87
Withholding 39 Health insurance premiums 36
Exception to rule 88 Form 8606 not filed for
Frozen deposits: Health Spa 104 nondeductible
Help (See Tax help) Age 72:
Interest on 76 contributions 78, 83
High income taxpayers: Distributions required at 86,
IRA rollover period extension 84 88 Overstatement of
Funeral expenses 36 Estimated tax 41 nondeductible
Compensation, defined 79 contributions 83
Funerals: Hobbies 103
Contribution limits 79 Prohibited transactions 87
Clergy, payment for 51 Activity not for profit 74
Age 50 or older, 79 Required distributions, failure
Expenses 103 Losses 76
Under age 50, 79 to take 86, 88
Holiday gifts 49
Contributions 23, 24 Prohibited transactions 87
Holiday, deadline falling on 42
G Home:
Designating year for which Recharacterization of
contribution is made 80 contribution 85
Gains and losses 23 Aged, home for 35 Excess 87
(See also Losses) Reporting of:
Cost of keeping up 24 Filing before contribution is
Claim for refund for loss 20 Distributions 87
Worksheet 25 made 80
Gambling 105 Recharacterization of
Security system 104 Nondeductible 83 contributions 86
Hobby losses 76 Homeowners' associations: Not required annually 80 Required distributions 84, 86
Passive activity 24 Charges 101 Roth IRA contribution for same Excess accumulations 88
Gambling winnings and Deductibility (Table 11-1) 100 year 90
losses 76, 105 Retirement savings contribution
Hope credit: Time of 80 credit 23
Withholding 40, 44 Married filing separately 23 Withdrawal before filing due Self-employed persons 79
Garbage pickup: Host 70 date 86 Taxability 88
Deductibility (Table 11-1) 100 Household furnishings: Cost basis 83, 86 Distributions 86
Garnishment and attachment 13 Antiques (See Collectibles) Deduction for 80 Time of taxation 79
Gas royalties 72 Household members 22 Participant covered by Transfers permitted 84
Gems: (See also Head of household) employer retirement plan
(Table 9-1) 81 To Roth IRAs 84, 85
IRA prohibited transactions in 87 Household workers (See Domestic
Participant not covered by Trustee administrative fees 103
General due dates, estimated help)
tax 42 employer retirement plan Trustee-to-trustee transfers 84
Household workers, can’t claim as
GI Bill benefits 36 dependent 27 (Table 9-2) 81 IRA to Roth IRA 91
Gift taxes: Housing 24 Phaseout 81 Types of 79
Not deductible 101 (See also Home) Definition of 79 Withdrawals 86, 87
Gifts: Clergy 51 Distributions: Early (See Early withdrawal
Cooperative (See Cooperative At age 59 1/2 88 from deferred interest
Holiday gifts 49 account)
Not taxed 76 housing) Required minimum
distributions (See this Required (See this heading:
To reduce the public debt 17 heading: Required Required distributions)
Gold and silver: I distributions) Withholding 14, 40, 87
IRA investments in 87 Icons, use of 3, 4 Divorced taxpayers 85 Individual taxpayer identification
Government employees: Identity theft 2, 21 Early distributions (See Early number (ITIN) 14, 37
Federal (See Federal employees) Illegal activities: withdrawal from deferred Individual taxpayers (See Single
Grants, disaster relief 74 Reporting of 76 interest account) taxpayers)
Gratuities (See Tip income) Income 47, 67, 74 Employer retirement plan Information returns 12, 14, 47, 48,
Gross income: (See also Alimony) participants 80, 81 51
(See also Wages and salaries) Establishing account 79 (See also Form 1099)
Age, higher filing threshold after (See also Form W-2)
65 7 Bartering 67 Time of 79
Where to open account 79 Partnerships to provide 70
Defined 7 Canceled debts 68
Excess contributions 87 Inheritance 75
Filing requirements Constructive receipt of 13, 61 (See also Estate beneficiaries)
(Table 1-1) 6 Gross 34 Figuring modified AGI (Worksheet
9-1) 83 IRAs (See Individual retirement
Dependent filing requirements Illegal activities 77 arrangements (IRAs))
(Table 1-2) 7 Forms to use:
Interest 54 Not taxed 76
Gross income test 34 Form 1099-R for reporting
Jury duty pay 76 Inheritance tax:
Group-term life insurance: distributions 87
Life insurance proceeds 70 Deductibility of 101
Accidental death benefits 49 Form 8606 for nondeductible
Nonemployee compensation 75 contributions 78 Deduction 101
Definition 49
Paid to agent 13 Inherited IRAs 76, 83, 84 Injured spouse 15
Exclusion from income 50
Paid to third party 13 Required distributions 86 Claim for refund 15
Limitation on 49
Partnership 70 Interest on, treatment of 78 Innocent spouse relief:
Permanent benefits 49
Prepaid 13 Kay Bailey Hutchison Spousal Form 8857 23
Taxable cost, calculation of 49
Recovery 71 IRAs 79-81 Joint returns 23
Guam:
Royalties 72 Married couples (See this Insolvency:
Income from 8 heading: Kay Bailey Hutchison
S corporation 71 Canceled debt not deemed to be
Tax exempt 35 Spousal IRAs) income 69
Underreported 19 Modified adjusted gross income Installment agreements 16
(MAGI):
Computation of 81

Insurance: Dependents on 34 Local law violated 34 Medical insurance premiums 36
Accident (See Accident Divorced taxpayers 22 Lockout benefits 77 Medical savings accounts
insurance) Estimated tax 42 Lodging 36 (MSAs) 48, 76
Life 40, 49 Extension for citizens outside Long-term care insurance (See also Archer MSAs)
(See also Group-term life U.S. 12 contracts 53 Medicare Advantage MSA 76
insurance) Filing status 22 Chronically ill individual 54, 70 Medicare 48, 52
(See also Life insurance) (See also Social security and
Fraud penalty 21 Exclusion, limit of 54
Reimbursements: Medicare taxes)
Guardian of spouse, signing Qualified services defined 54
From casualty insurance 74 as 23 Benefits 74
Losses 20, 24
Insurance companies: Injured spouse 15 (See also Gains and losses) Medicare Advantage MSA
State delinquency proceedings, (See Medical savings
Innocent spouse 23 Capital 23 accounts (MSAs))
IRA distributions not made
due to 88 Nonresident or dual-status alien Casualty 102, 105 Medicare taxes, not support 36
spouse 23 Gambling (See Gambling
Insurance premiums: Member of household or
Responsibility for 22 winnings and losses) relationship test 34
Life 36, 104
Separate return after joint 24 Theft 102, 105 Mentally incompetent persons 53
Medical 36
Signing 15, 23 Lost property 104 (See also Disabilities, persons with)
Paid in advance 56
Social security and railroad Lotteries and raffles 76 Signing of return by
Insurance proceeds: retirement benefits 67 (See also Gambling winnings and court-appointed
Dividends, interest on 56 State and local income taxes, losses) representative 15
Installment payments 60 deduction of 98 Mexico:
Life 60 Judges, federal: M Resident of 28, 34
Interest: Employer retirement plan Military (See Armed forces)
Fees to collect 103 coverage 80 MAGI (See Modified adjusted gross
income (MAGI)) Mineral royalties 72
Frozen deposits 56 Jury duty pay 76 Ministers (See Clergy)
Usurious 56 Mailing returns (See Tax returns)
Married dependents, filing joint Miscellaneous deductions 101
Interest income 54 K return 28, 30 Missing children:
Form 1099-INT 12 Photographs of, included in IRS
Kickbacks 76 Married filing separately 23
Frozen deposits, from 76 publications 3
Kiddie tax (See Children, Community property states 24
Recovery of income, on 71 Mistakes (See Errors)
subheading: Unearned income of) Credits, treatment of 23
Savings bonds 76 Modified adjusted gross income
(See also U.S. savings bonds) Kidnapped children: Deductions:
(MAGI):
Tax refunds, from 18 Qualifying child 29 Changing method from or to
itemized deductions 95 IRAs, computation for:
Interest payments 71 Qualifying relative 33
Treatment of 23 Effect on deduction if covered
(See also Mortgages) by employer retirement
Canceled debt including 68 L Earned income credit 23 plan (Table 9-1) 81, 83
Student loans deduction 23 How to file 23 Effect on deduction if not
Labor unions 40 Itemized deductions 23, 95
Interference with business covered by employer
Dues and fees 77 One spouse has itemized so retirement plan
operations:
Sick pay withholding under union other must as well 93 (Table 9-2) 81
Damages as income 75 agreements 40
Internal Revenue Service (IRS): Joint state and local income taxes Worksheet 9-1 83
Strike and lockout benefits 77 filed, but separate federal Roth IRAs, computation for 89
Fraud or misconduct of employee, Unemployment compensation returns 97
reporting anonymously 3 Phaseout (Table 9-3) 89
payments from 73 Rollovers 23
International employment Worksheet 9-2 89
Late filing 3 Social security and railroad
(See Foreign employment) Money market certificates 56
Penalties 11, 20 retirement benefits 64
International organizations, Mortgage:
employees of 52 Late payment: State and local income taxes 97
Relief 68
Internet: Penalties on tax payments 20 Tenants by the entirety, allocation
of real estate taxes 99 Mortgages:
Electronic filing over (See E-file) Law enforcement officers:
Married taxpayers 22-24 Assistance payments 74
Investments: Life insurance proceeds when
death in line of duty 70 (See also Joint returns) Discounted mortgage loan 68
Fees 103 (See also Married filing separately) Interest:
Legal expenses 103, 104
Seminars 104 Age 65 or older spouse: Refund of 71
Liability insurance:
IRAs (See Individual retirement Standard deduction 94 MSAs (See Medical savings
arrangements (IRAs)) Reimbursements from 74
Blind spouse: accounts (MSAs))
Itemized deductions: License fees:
Standard deduction 94 Multiple support agreement 36
Changing from standard to Deductibility of 101
Deceased spouse 6, 7, 22 Municipal bonds 60
itemized deduction (or vice Nondeductibility of 103 (See also Surviving spouse) Mutual funds:
versa) 95 Life insurance 49, 70 Dual-status alien spouse 23 Nonpublicly offered 103
Choosing to itemize 94 (See also Accelerated death
benefits) Estimated tax 42
Form 1040 to be used 71
(See also Group-term life insurance) Filing status 6, 7, 22 N
Married filing separately 23, 95
Form 1099-R for surrender of IRAs 79, 80
One spouse has itemized 93 policy for cash 70 Name change 13, 44
Spouse covered by employer
Recovery 71 Premiums 104 plan 80, 81 National Housing Act:
Standard deduction to be Proceeds 60 Living apart 22 Mortgage assistance 74
compared with 94 National of the United States 28
As income 70 Nonresident alien spouse 14, 23
State tax, for 95 Native Americans (See Indians)
Public safety officers who died or Roth IRAs 89
ITIN (See Individual taxpayer were killed in line of duty, tax Negligence penalties 20
identification number (ITIN)) Signatures when spouse unable
exclusion 70 to sign 15 Net operating losses:
ITINs (See Individual taxpayer Surrender of policy for cash 70
identification number (ITIN)) Social security or railroad Refund of carryback 20
Withholding 40 retirement benefits, New Jersey Nonoccupational
Life insurance premiums 36 taxability 63 Disability Benefit Fund 98
J Lifetime learning credit: Mass transit passes, New Jersey Unemployment
employer-provided 50 Compensation Fund 98
Job search: Married filing separately 23
Maximum age. The age restriction New York Nonoccupational
Deduction of expenses for Limits: for contributions to a
Interviews 76 Disability Benefit Fund 98
Miscellaneous deductions 102 traditional IRA has been
Joint accounts 55 Nobel Prize 77
Loans 19 eliminated.:
Joint return test 28, 30 (See also Debts) Nominees 55, 61
Traditional IRA contributions 78
Joint returns: Lobbying expenses 104 Nonemployee compensation 75
Medical and dental expenses:
Accounting period 22 Local assessments: Nonresident aliens 8
Reimbursements, treatment
After separate return 24 Deductibility of 100 of 54 Due dates 11
Deceased spouse 22 Local income taxes, itemized Medical insurance (See Accident Estimated tax 41
deductions 95 insurance)

Nonresident aliens (Cont.)
Individual taxpayer identification Disaster relief 74 Personal injury suits: Lump-sum election 64
number (ITIN) 14 Payroll deductions 101 Damages from 75 Married filing separately 23, 64
Spouse 14 Payroll taxes 48 Personal property: Repayment of benefits 64
Joint returns not available 23 (See also Social security and Rental income from 72 Reporting of 64
Separated 24 Medicare taxes) Personal property taxes: Taxability of 63, 64
Standard deduction 93 Peace Corps allowances 52 Deduction of 101 Withholding 40
Taxpayer identification Penalties 43, 45 Schedule A, C, E, or F (Form Not tax deductible 101
number 37 Accuracy-related 20 1040) 101 Withholding for 64
Waiver of alien status 52 Backup withholding 41 Taxes (See Personal property Railroad Unemployment
Northern Mariana Islands: Civil penalties 20 taxes) Insurance Act 54
Income from 8 Criminal 21 Personal representatives Real estate:
Not-for-profit activities 74 Deductibility 104 (See Fiduciaries) Canceled business debt,
Notary fees 76 Defenses 20 Persons with disabilities treatment of 69
Notes: Estimated tax (See this heading: (See Disabilities, persons with) Division of real estate taxes 98
Discounted 48, 60 Underpayment of estimated Place for filing 17 Form 1099-S to report sale
Received for services 48 tax) Political campaign expenses 104 proceeds 99
Nursing homes: Failure to include social security Political contributions Itemized charges for services not
number 14, 21 (See Campaign contributions) deductible 100
Insurance for care in (See Long-
term care insurance contracts) Failure to pay tax 20 Power of attorney 15, 23 Real estate-related items not
Nutrition Program for the Form 8606 not filed for Premature distributions (See Early deductible 100
Elderly 74 nondeductible IRA withdrawal from deferred interest Transfer taxes 101
contributions 78, 83 account) Real estate taxes:
Fraud 20, 21 Prepaid: Assessments (See Local
O Frivolous tax submission 21 Insurance 56 assessments)
OASDI 74 Interest on 16 Preparers of tax returns 15 Cooperative housing 98
Occupational taxes: IRAs 87 Presidential Election Campaign deduction of 98
Deduction of: Early distributions 88 Fund 14 Deduction of:
Taxes that are deductible Excess contributions 87 Price reduced after purchase 69 List of deductible taxes
(Table 11-1) 100 Form 8606 not filed for Principal residence (See Home) (Table 11-1) 100
Office rent, deductibility of 102 nondeductible Privacy Act and paperwork Schedule A, C, E, or F (Form
Offset against debts 10, 15 contributions 78, 83 reduction information 3 1040) 101
Oil, gas, and minerals: Overstatement of Private delivery services 11 Refund, treatment of 99
nondeductible Prizes and awards 47, 77 Rebates (See Refunds)
Future production sold 73 contributions 83 (See also Bonuses) Recharacterization:
Royalties from 72 Required distributions, failure Exclusion from income 47 IRA contributions 85
Schedule C or C-EZ 72 to take 86 Pulitzer, Nobel, and similar Recordkeeping:
Sale of property interest 73 Late filing 11, 20 prizes 77
Options 51 Exception 20 Gambling 105
Scholarship prizes 77
Ordinary gain and loss (See Gains Late payment 20 Savings bonds used for
Professional license fees 104 education 60
and losses) Negligence 20 Professional Reputation 104 Recordkeeping requirements 17
Original issue discount (OID) 60 Reportable transaction Profit-sharing plans: Basic records 17
Other taxes 108 understatements 20 Withholding 14, 40 Copies of returns 17
Outplacement services 48 Roth IRAs: Property: Electronic records 17
Overpayment of tax 15 Conversion contributions
(See also Tax refunds) Found 76 Gambling 76
withdrawn in 5-year
Overseas work (See Foreign period 92 Stolen 77 Period of retention 18
employment) Excess contributions 91 Public assistance benefits 73 Proof of payments 18
Overtime pay 39 Substantial understatement of Public debt: Why keep records 17
income tax 20 Gifts to reduce 17 Recovery of amounts previously
P Tax evasion 21 Public transportation passes, deducted 71
Underpayment of estimated employer-provided 50 Itemized deductions 71
Paper vs. electronic return (See E- tax 37, 43, 45 Publications (See Tax help)
file) Mortgage interest refund 71
Willful failure to file 21 Puerto Rico: Over multiple years 71
Paperwork Reduction Act of Residents of 8
1980 3 Withholding 39, 41 Tax refunds 71
Pennsylvania Unemployment Pulitzer Prize 77 Refunds 108
Parental responsibility
(See Children) Compensation Fund 98 Punitive damages: State tax 71
Parents who never married 30 Pensions 38, 62 As income 75 Taxes (See Tax refunds)
(See also Railroad retirement
Parents, divorced or benefits) Rehabilitative program
separated 29
Clergy 51
Q payments 52
Parking fees: Reimbursement 71
Contributions: Qualified opportunity fund 77 (See also Recovery of amounts
Employer-provided fringe benefit: Qualified plans 84
Retirement savings previously deducted)
Exclusion from income 50 contribution credit 23 (See also Rollovers)
Partners and partnerships 103 Employee business expenses 47
Taxation of 50 Qualified tuition programs 77 Relationship test 28, 34
Income 70 Decedent's unrecovered Qualifying child 28
Pass-through entities 103 Relative, qualifying 33
investment in 14 Qualifying relative 33
Passive activity: Relief fund contributions 105
Disability pensions 53
Losses 24 Religious organizations 8, 51
Elective deferral limitation 50 R (See also Clergy)
Patents: Employer plans:
Raffles 76 Rental income and expenses:
Infringement damages 75 Benefits from previous
Railroad retirement Increase due to higher real estate
Royalties 72 employer's plan 80 taxes 101
Payment of estimated tax 43 Rollover to IRA 85, 91 benefits 62-67, 77
Deductions related to 66 Deductibility (Table 11-1) 100
By check or money order 43 Situations in which no Losses from rental real estate
Credit an overpayment 43 coverage 80 Employer retirement plans
different from 80 activities 24
Payment of tax 3, 10, 16, 19, 43 Inherited pensions 76 Personal property rental 72
Military (See Armed Forces) Equivalent tier 1 (social security
By credit or debit card 11 equivalent benefit Repayments 72
Delivery services 11 Unrecovered investment in 106 (SSEB)) 62, 77 Amount previously included in
Estimated tax 16 Withholding 14, 40 Estimated tax 64 income 106
Installment agreements Per capita taxes: Form RRB-1042S for nonresident Railroad retirement benefits 64
(See Installment agreements) Deductibility of 101 aliens 63 Social security benefits 64, 72
Late payment penalties 20 Personal exemption 37 Form RRB-1099 62 Unemployment compensation 73
Payments 108, 109 Joint returns 67

Reporting: Treatment of 84 Scholarships and fellowships: Social security and Medicare
Rollovers 85 Waiting period between 84 Earned income including 94 taxes:
Required minimum Roth IRAs 89-92 Exclusion from gross income 77 Support, not included in 36
distributions 84, 86 (See also Rollovers) Teaching or research Social security benefits 35, 62, 67
(See also Individual retirement Age: fellowships 77 Deductions related to 66
arrangements (IRAs)) Distributions after age Section 457 deferred Employer retirement plans
Rescue squad members: 59 1/2 92 compensation plans: different from 80
Life insurance proceeds when No limit for contributions 89 Rollovers: Estimated tax 64
death in line of duty 70 No required distribution To IRAs 85, 91 Foreign employer 52
Reservists: age 92 Securities: Form SSA-1042S for nonresident
IRAs 80 Compensation, defined 89 Claim for refund 20 aliens 63
Repayments 79 Contribution limits 90 Options 51 Form SSA-1099 62
Residency: Age 50 or older, 90 Stock appreciation rights 48 IRAs for recipients of benefits 81
Home outside U.S. (See Citizens Under age 50, 90 Self-employed persons 101 Joint returns 67
outside U.S.) Contributions 89 (See also Self-employment tax) Lump-sum election 64
Residency test 29 No deduction for 89 Corporate directors as 75 Married filing separately 23, 64
Resident aliens: Roth IRA only 90 Definition 8 Paid by employer 48
Estimated tax 41 Time to make 91 Foreign government or Repayment of benefits 64, 72
IRA distributions, withholding To traditional IRA for same international organizations, Repayments 103
from 87 year 90 U.S. citizens employed by 8 Reporting of 64
Social security number (SSN) 13 Conversion 91 Gross income 7 Taxability of 63, 64
Spouse treated as 24 Definition of 89 IRAs 79 Withholding 40
Retired Senior Volunteer Distributions: Ministers 8
Program 52 Withholding for 64
Qualified distributions 92 Nonemployee compensation 75 Not deductible 101
Retirees: Self-employment tax:
Effect of modified AGI on Social security number (SSN) 13
Armed Forces: contributions (Table 9-3) 89 Deduction of 101
Taxable income 52 Child's 2
Establishing account 89 List of deductible taxes Number to be obtained at
Retirement planning services 50 Excess contributions 91 (Table 11-1) 100 birth 37
Retirement plans 23, 38, 62 IRA transfer to 84, 85 Seminars:
(See also Railroad retirement Correspondence with IRS, include
Modified adjusted gross income Investment-related 104 SSN 14
benefits)
(See also Roth IRAs) (MAGI) 89 Senior Companion Program 52 Dependents 2, 13
Clergy 51 Computation (Worksheet Separate returns (See Married filing Exception 13
9-2) 89 separately) Failure to include penalty 14
Contributions 50
Phaseout (Table 9-3) 89 Separated parents 29, 33 Form SS-5 to request number 13
Credit for (See Retirement
savings contribution credit) Penalties: Separated taxpayers 22 Nonresident alien spouse 14
Taxation of 50 Conversion contributions Filing status 23, 24 Resident aliens 13
withdrawn in 5-year IRAs 80
Decedent's unrecovered period 92 Spouse 7, 14, 15, 22, 23, 70
investment in 14 Nonresident alien spouse 24 (See also Married taxpayers)
Excess contributions 91 SEPs (See Simplified employee
Disability pensions 53 Spouse's death 94
Recharacterizations 85 pensions (SEPs))
Elective deferral limitation 50 SSN (See Social security number
Spousal contributions 89 Series EE and E savings (SSN))
Employer plans:
Taxability 92 bonds 57 Stamp taxes:
Benefits from previous
employer's plan 80 Withdrawals 92 Series HH and H savings Real estate transactions and 101
Excess contributions 91 bonds 57
Rollover to IRA 85, 91 Stamps (See Collectibles)
Not taxable 92 Series I savings bonds 57
Situations in which no Standard deduction 93, 95
coverage 80 Rounding off dollars 14 Service charges 103
State:
Inherited pensions 76 Royalties 72 Service Corps of Retired
Executives (SCORE) 52 Obligations, interest on 60
IRAs (See Individual retirement State or local governments:
Severance pay 48
arrangements (IRAs)) S Accrued leave payment 48 Employees:
Military (See Armed Forces) Unemployment
Withholding 14, 40 S corporations 103 Outplacement services 48
compensation 73
Retirement savings contribution Shareholders 71 Short tax year:
State or local income taxes 95
credit: Safe deposit box 103 Change in annual accounting
period 93 Deduction of 97
Adjusted gross income limit 23 Salaries (See Wages and salaries)
Sick pay: List of deductible taxes
Returns, tax (See Tax returns) Sale of home 77 (Table 11-1) 100
Rewards 77 Division of real estate taxes 98 Collective bargaining
agreements 40 Schedule A (Form 1040) 101
Rhode Island Temporary Disability Sale of property: Electronic returns filed with
Benefit Fund 98 Personal items 77 FECA payments 54
federal 9
Rollovers 84 Sales and exchanges: Income 48
Exception to deduction 97
Definition of 84 Bonds 60 Railroad Unemployment
Insurance Act 54 Federal changes, effect on 20
Excess due to incorrect rollover Saturday, deadline falling on 42 Form W-2 to show withheld
information 88 Withholding 39, 40
Savings: taxes 97
From 403 plan to IRA 84 Signatures 14
Bonds 57, 62 Joint state and local returns but
From employer's plan to IRA 84, Agent, use of 15 federal returns filed
Bonds used for education 59
85 Joint returns 23 separately 97
Certificate 56, 61
From IRA to IRA 84 Mentally incompetent 15 Married filing separately 97
Schedule 17, 47, 51, 54
From IRA to Roth IRA 91 (See also Form 1040) Parent for child 15 Refunds, treatment of 97, 98
From Roth IRA to Roth IRA 92 (See also Form 1040 or 1040-SR) Physically disabled 15 State or local taxes:
From section 457 plan to IRA 84 Form 1040, A-F, R, SE (See Form Signing your return 9 Refunds 71
From SIMPLE IRA to Roth 1040) Silver (See Gold and silver) Statute of limitations:
IRA 92 K-1: SIMPLE plans: Claim for refund 15
Inherited IRAs 84 Partnership income 70 Rollover to Roth IRA 92 Claim for refunds 19
Married filing separately 23 S corporation income 71 Simplified employee pensions Stillborn child 29
Partial rollovers 84 K-1, Form 1041 55 (SEPs): Stock appreciation rights 48
Reporting: Schedule A (Form 1040): IRAs as 79 Stock bonus plans 40
From employer's plan to Itemized deductions 95 Single taxpayers 22 Stock options 51
IRA 85 Schedules A–F, R, SE (Form 1040) Filing requirements 7 Stockholders 20
IRA to IRA 84 (See Form 1040) Filing status 7, 22 (See also Securities)
Taxability 84, 89 Scholarships 30, 34, 36 Gross income filing requirements Debts 68
Time limits (60-day rule) 84 (Table 1-1) 6

Stockholders' meeting Tax help 3, 10, 127 Tax-exempt income 35 Travel and transportation
expenses 105 Tax Counseling for the Elderly 10 Taxes 38, 97-101, 107 expenses:
Stocks 20 Volunteer counseling (Volunteer Alternative minimum 108 Commuting expenses:
(See also Securities) Income Tax Assistance Business taxes, deduction of 97 Employer-provided commuter
Stolen funds: program) 10, 52 Deduction of 97 vehicle 50
Reporting of 77 Tax preference items 108 Schedules to use 101 Expenses paid for others 105
Stolen property 77 Tax rates 22 Types of taxes deductible Fringe benefits 50
Strike benefits 77 Married filing separately (Table 11-1) 100 Job search expenses 76
Student loans: (Schedule Y-2) 23 Estate (See Estate tax) Parking fees:
Cancellation of debt 68 Tax refunds: Excise (See Excise taxes) Employer-provided fringe
Interest deduction: Agreement with IRS extending Federal income taxes, not benefit 50
Married filing separately 23 assessment period, claim deductible 101 School children, transporting
based on 20 of 77
Students: Foreign taxes 97
Bad debts 19 Transit pass 50
Defined 28 Income tax, deduction of 98
Business tax credit Treasury bills, notes, and
Exemption from withholding 39 carrybacks 20 Gift taxes 101
bonds 60
Foreign 28 Cashing check 15 How to figure
Treasury Inspector General:
Loans (See Student loans) Check's expiration date 15 Income taxes, deduction of 97
Telephone number to report
Scholarships (See Scholarships Claim for 18, 20 Indian tribal government taxes, anonymously fraud or
and fellowships) deduction of 97 misconduct of IRS
Limitations period 19
Tuition programs, qualified Inheritance tax 101 employee 3
(See Qualified tuition Litigation 20
Kiddie tax (See Children, Treasury notes 56
programs) Direct deposit 15 subheading: Unearned
Erroneous refunds 18 Trust beneficiaries:
Substitute forms 12 income of)
Federal income tax refunds 71 Losses of trust 75
Sunday, deadline falling on 42 Not deductible 101
Financially disabled 19 Receiving income from trust 75,
Supplemental wages 39 Personal property taxes: 76
Support test: Foreign tax paid or accrued 20 Deduction of 101 Trustees:
Qualifying child 30 General rules 10 Real estate taxes (See Real Administrative fees 103
Qualifying relative 35 Inquiries 10 estate taxes)
IRA 103
Surviving spouse: Interest on 18, 20, 56 Taxes, not support 36
IRAs:
Filing status 22 Late filed returns 3 Taxpayer identification number
(TIN): Fees 79, 80
With dependent child 25 Limits 19
Adoption (ATIN) 13 Transfer from trustee to
Gross income filing requirements Exceptions 19 trustee 84, 91
(Table 1–1) 6 More or less than expected 15 Individual (ITIN) 14, 37
Trusts 75
Life insurance proceeds paid Net operating loss carryback 20 Social security number (See also Trust beneficiaries)
to 70 Offset: (See Social security number
(SSN)) Grantor trusts 75
Single filing status 22 Against debts 10, 15 Income 75
Tax (See Estate tax) Telephones 105
Against next year's tax 15 TTY/TDD information 127
Surviving Spouse (See Surviving Fraud or misconduct of IRS
Offset against next year's tax 43 employee, number for Tuition:
spouse) Past-due 10, 18 reporting anonymously 3 Qualified programs
Real estate taxes, treatment Temporary absences 29, 34 (See Qualified tuition
T of 99 Tenants: programs)
Reduced 20 By the entirety 55 Tuition programs, qualified
Tables and figures: (See Qualified tuition programs)
State and local income tax In common 55
Estimated tax, who must make refunds 97, 98 Tuition, benefits under GI Bill 36
payments (Figure 4-A) 42 Tenants by the entirety:
State liability, effect on 20
Filing requirements: Real estate taxes, allocation when
Dependents (Table 1-2) 7
Under $1 15 filing separately 99 U
Withholding 8 Terminal illness:
Gross income levels U.S. citizen or resident 28
(Table 1-1) 6 Worthless securities 20 Accelerated payment of life
Tax returns 11, 14, 22 U.S. national 28
Head of household, qualifying insurance proceeds
(See also Due dates) (See Accelerated death U.S. obligations, interest 56, 57
person (Table 2-1) 24
(See also Joint Returns) benefits) U.S. savings bonds:
Individual retirement (See also Signatures)
arrangements (IRAs): Viatical settlements 70 Education, used for 23
Aliens 8 Terrorist attacks: Interest on 76
Figuring modified AGI
(Worksheet 9-1) 83 Amended 18, 19, 95 Disability pensions for federal U.S. territories:
(See also Form 1040-X) employees 53 Deduction of income tax paid
Modified AGI, effect on
deduction if covered by Attachments to returns 14 Theft losses 102, 105 to 98
retirement plan at work Child 15 Third parties: Income from 8
(Table 9 -1) 81 Copies of 17 Designee for IRS to discuss return U.S. Treasury bills, notes, and
Modified AGI, effect on Dating of 14 with 14 bonds 60
deduction if not covered by Filing of 6 Income from taxpayer's property U.S. Virgin Islands:
retirement plan at work (See also Filing requirements) paid to 13 Income from 8
(Table 9-2) 81 Forms to use 8 Tiebreaker rules 32 Underpayment penalties 37, 43,
Roth IRAs, effect of modified Free preparation help 10 45
AGI on contributions Tip income:
(Table 9-3) 89 How to file 12 Allocated tips 39 IRS computation 45
Roth IRAs, modified AGI Mailing of 17 Withholding 39 Unearned income:
(Worksheet 9-2) 89 Paid preparer 15 Underwithholding 39 Children 55
Roth IRA and modified adjusted Payment with 16 Total support 35 Unearned income of child
gross income (MAGI) Private delivery services 11 Tour guides: (See Children, subheading:
phaseout (Table 9-3) 89 Steps to prepare (Table 1-6) 12 Unearned income of)
Free tour for organizing tour 76
Standard deduction tables 96 Third party designee 14 Unemployment compensation 73
Trade Act of 1974:
Tax returns: Who must file 7, 8 Credit card insurance paying 75
Trade readjustment allowances
Due dates (Table 1-5) 11 Tax Returns: under 73 Mandatory contributions to state
Steps to prepare funds, deduction of 98
Transcript of 17 Traditional IRAs (See Individual
(Table 1-6) 12 retirement arrangements (IRAs)) Private fund, from 73
Tax table 112-123
Taxes that are deductible Transfer taxes: Repayment of benefits 73
Tax year 11-13
(Table 11-1) 100 (See also Accounting periods) Real estate transactions and 101 Reporting on Form 1040 73
Tax computation worksheet 124 Tax-exempt: Transit passes 50 Supplemental benefits 73
Tax Counseling for the Elderly 10 Bonds and other obligations 60 Voluntary benefit fund
Tax credits (See Credits) contributions 105
Income 105
Tax evasion 21 Withholding 40, 73
Interest 60
Tax figured by IRS 108

Unions 40, 73, 77 Archer MSA contributions 48 Supplemental 39 IRA distributions 87
(See also Labor unions) Awards and prizes 47 Volunteer work 52 New job 38
Unmarried persons (See Single Babysitting 47 Withholding (See Withholding) Penalties 37, 39, 41
taxpayers) Back pay awards 47 War zone (See Combat zone) Pensions and annuities 14, 40
Usurious interest 56 Bonuses 47 Washington State Supplemental Railroad retirement benefits 40,
Utilities: Child care providers 47 Workmen's Compensation 64
Energy conservation Children's earnings 8 Fund 98 Repaying withheld tax 39
subsidies 75, 78 Welfare benefits 35, 73 Salaries and wages 37
Clergy 51
Rebates 78 What's new 1 Separate returns 44
De minimis benefits 49
Elective deferrals 50 Where to file 17 Sick pay 40
V Employee achievement award 47 Winter energy payments 75 Social security benefits 40, 64
Employee compensation 47 Withholding 12, 37 State and local income taxes,
Veterans benefits 52 (See also Form W-2)
Farmworkers 38 deduction for 97
Retroactive determination 53 Agricultural Act of 1949
Foreign employer 52 Supplemental wages 39
Special statute of limitations. 53 payments 40
Form W-2 (See Form W-2) Tips (See Tip income)
Veterans' benefits: Changing amount withheld 38
Fringe benefits 48 Unemployment
Educational assistance 77 For 2022 38 compensation 40, 73
Viatical settlements 70 Garnished 13 Checking amount of 38 Workers' compensation 54
VISTA volunteers 52 Government cost-of-living Claim for refund 8
allowances 48 Mandatory contributions to state
Volunteer firefighters: Commodity credit loans 40 funds, deduction of 98
IRAs 81 Household workers 38
Credit for 37, 44 Return to work 54
Volunteer work 52 Long-term care coverage 48
Cumulative wage method 38 Worksheets:
Tax counseling (Volunteer Income Military retirees 38, 52
Definition 37 Head of household status and
Tax Assistance program) 10, Military service 52 cost of keeping up home 25
Determining amount to
52 Miscellaneous compensation 47 withhold 38 Individual retirement
Vouchers for payment of tax 43 Note for services 48 Disaster Assistance Act of 1988 arrangements (IRAs),
Outplacement services 48 payments 40 modified AGI computation
W Religious orders 51 Employers, rules for 39 (Worksheet 9-1) 83
Restricted property 51 Exemption from 39 Roth IRA modified adjusted gross
W-2 form (See Form W-2) income (MAGI), computation
Dividends on restricted Federal income taxes, not
Wages and salaries 12, 47-54 stock 51 (Worksheet 9-2) 89
(See also Form W-2) deductible 101
Retirement plan contributions by Social security or railroad
Accident and health Form W-4: retirement benefits, to figure
employer 50 Provided by employer 39
insurance 48 taxability 63, 64
Severance pay 48 Fringe benefits 39
Accrued leave payment 48 Support test 31
Sick pay 48, 54 Gambling winnings 40, 44
Adoption, employer Wristwatch 105
assistance 49 Social security and Medicare General rules 37
taxes paid by employer 48 Write-offs (See Cancellation of
Advance commissions 47 Highest rate, employer must debt)
Stock appreciation rights 48 withhold at if no W-4 39
Allowances and
reimbursements 39, 47 Stock options 51 Incorrect form 44

Where To File
Mail your return to the address shown below that applies to you. If you want to use a private delivery service, see Private
delivery services in chapter 1.
TIP
Envelopes without enough postage will be returned to you by the post office. Your envelope may need
additional postage if it contains more than five pages or is oversized (for example, it is over 1/4 inch thick). Also, include
your complete return address.
THEN send your return to the address OR send your return to the address
below if you are requesting a refund or below if you ARE enclosing a
IF you live in... are NOT enclosing a payment... payment (check or money order)...
Alabama, Georgia, North Carolina, South Carolina, Department of the Treasury Internal Revenue Service
Tennessee Internal Revenue Service P.O. Box 1214
Austin, TX 73301-0002 Charlotte, NC 28201-1214
Alaska, California, Colorado, Hawaii, Idaho, Kansas, Department of the Treasury Internal Revenue Service
Michigan, Montana, Nebraska, Nevada, North Dakota, Internal Revenue Service P.O. Box 802501
Ohio, Oregon, South Dakota, Utah, Washington, Wyoming Ogden, UT 84201-0002 Cincinnati, OH 45280-2501
Arizona, New Mexico Department of the Treasury Internal Revenue Service
Internal Revenue Service P.O. Box 802501
Austin, TX 73301-0002 Cincinnati, OH 45280-2501
Arkansas, Oklahoma Department of the Treasury Internal Revenue Service
Austin, TX 73301-0002 Louisville, KY 40293-1000
Connecticut, Delaware, District of Columbia, Illinois,
Indiana, Iowa, Kentucky, Maine, Maryland, Department of the Treasury Internal Revenue Service
Massachusetts, Minnesota, Missouri, New Hampshire, Internal Revenue Service P.O. Box 931000
New Jersey, New York, Rhode Island, Vermont, Virginia, Kansas City, MO 64999-0002 Louisville, KY 40293-1000
West Virginia, Wisconsin
Florida, Louisiana, Mississippi, Texas Department of the Treasury Internal Revenue Service
Austin, TX 73301-0002 Charlotte, NC 28201-1214
Pennsylvania Department of the Treasury Internal Revenue Service
Kansas City, MO 64999-0002 Cincinnati, OH 45280-2501
A foreign country, U.S. territory*, or use an APO or FPO Department of the Treasury Internal Revenue Service
address, or file Form 2555 or 4563, or are a dual-status Internal Revenue Service P.O. Box 1303
alien Austin, TX 73301-0215 Charlotte, NC 28201-1303
*If you live in American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands, see Pub. 570.

Tax Guide: Your Federal Income Tax

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Tax Guide: Your Federal Income Tax

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Publication 17

Your Federal Catalog Number 10311G

Income Tax For use in preparing

Jan 19, 2024

An address you may need.

Items you should keep in your personal records.

An important phone number.

TIP Helpful information you may need.

economic impact payment amounts, and Adoption taxpayer identification number. If

Reminders See How To Pay, later. 2022.

Do I Have To 65 or older (both spouses) $30,700

File a Return? Married filing separately any age $5

Publication 17 (2023) Chapter 1 Filing Information 7

8 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 1 Filing Information 9

You can file your tax return in a fast,

10 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 1 Filing Information 11

12 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 1 Filing Information 13

14 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 1 Filing Information 15

16 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 1 Filing Information 17

18 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 1 Filing Information 19

20 Chapter 1 Filing Information Publication 17 (2023)

Publication 17 (2023) Chapter 2 Filing Status 21

555 Community Property 1. You are married and living together.

standard deduction (if you don’t itemize deduc-

925 Passive Activity and At-Risk Rules

For these and other useful items, go to IRS.gov/

22 Chapter 2 Filing Status Publication 17 (2023)

Publication 17 (2023) Chapter 2 Filing Status 23

24 Chapter 2 Filing Status Publication 17 (2023)

Publication 17 (2023) Chapter 2 Filing Status 25

IF the person is your . . . AND . . . THEN that person is . . .

and Filing Information

503 Child and Dependent Care Expenses

Introduction 526 Charitable Contributions

This chapter discusses the following topics. Form (and Instructions)

• Dependents—You can generally claim 2120 Multiple Support Declaration

your qualifying child or qualifying relative

Claim to Exemption for Child by

Tests To Be a Qualifying Child Tests To Be a Qualifying Relative

Publication 17 (2023) Chapter 3 Dependents 27

28 Chapter 3 Dependents Publication 17 (2023)

Publication 17 (2023) Chapter 3 Dependents 29

30 Chapter 3 Dependents Publication 17 (2023)

Funds Belonging to the Person You Supported

Expenses for the Person You Supported

Did You Provide More Than Half?

Publication 17 (2023) Chapter 3 Dependents 31

32 Chapter 3 Dependents Publication 17 (2023)

Publication 17 (2023) Chapter 3 Dependents 33

34 Chapter 3 Dependents Publication 17 (2023)

Publication 17 (2023) Chapter 3 Dependents 35

36 Chapter 3 Dependents Publication 17 (2023)