If you were age 65 or older or blind, check the appropriate boxes on Line 35a. If you
were married and checked the box on Line 6b of Form 1040 and your spouse was age
65 or older or blind, also check the appropriate boxes for your spouse. Be sure to
enter the total number of boxes checked.
If you were age 65 or older on January 1, 2002, check the “65 or older” box on your 2001 return.
If you were partially blind as of December 31, 2001, you must get a statement certified
by your eye doctor or registered optometrist that:
- You cannot see better than 20/200 in your better eye with glasses or contact lenses, or
- Your field of vision is 20 degrees or less.
If your eye condition is not likely to improve beyond the conditions listed above,
you can get a statement certified by your eye doctor or registered optometrist to this
You must keep the statement for your records.
If your spouse itemizes deductions on a separate return or if you were a
dual-status alien, check the box on Line 35b. But if you were a dual-status
alien and you file a joint return with your spouse who was a U.S. citizen or
resident at the end of 2001 and you and your spouse agree to be taxed on your
combined worldwide income, do not check the box.
Line 36 - Itemized Deductions or Standard Deduction
In most cases, your Federal income tax will be less if you take the larger of:
- Your itemized deductions, or
- Your standard deduction.
If you checked the box on Line 35b, your standard deduction is zero.
To figure your itemized deductions,
fill in Schedule A.
Most people can find their standard deduction by looking at the amounts listed under “All others” to the left of line 36 of Form 1040. But if you checked any box on line 35a, or you (or your spouse if filing jointly) can be claimed as a dependent on someone’s 2001 return, use the worksheet below or the chart on page 32, whichever applies, to figure your standard deduction. Also, if you checked the box on line 35b, your standard deduction is zero, even if you were 65 or older or blind.
Electing To Itemize for State Tax or Other Purposes
If you itemize even though
your itemized deductions are less than your standard deduction, enter “IE” on the dotted line next
to Line 36.
Line 40 - Tax
Do you want the IRS to figure your tax for you?
Yes. See Pub. 967 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you did not pay enough, we will send you a bill.
No. Use one of the following methods to figure your tax. Also include in the total on line 40 any of the following taxes.
- Tax from Forms 8814 and 4972. Be sure to check the appropriate box(es).
- Tax from recapture of an education credit. You may owe this tax if (a) you claimed an education credit in an earlier year and (b) you, your spouse if filing jointly, or your dependent received in 2001 either tax-free educational assistance or a refund of qualified expenses. See Form 8863 for more details. If you owe this tax, enter the amount and “ECR” on the dotted line next to line 40.
Tax Table or Tax Rate Schedules. If your taxable income is less than $100,000, you must use the Tax Table, which starts on page 59, to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Rate Schedules on page 71.
Exception. Do not use the Tax Table or Tax Rate Schedules to figure your tax if either 1 or 2 below applies.
- You are required to figure your tax using the Tax Computation Worksheet for Certain Dependents below, Form 8615, Schedule D, or the Capital Gain Tax Worksheet on page 34.
- You use Schedule J (for farm income) to figure your tax.
Tax Computation Worksheet for Certain Dependents. If you, or your spouse if filing jointly, can be claimed as a dependent on someone’s 2001 return, you must use the worksheet below to figure your tax unless you received (before offset) an advance payment of your 2001 taxes. If any of the other methods listed in item 1 or 2 above apply to you, follow the Special Rules on the worksheet to figure your tax. Your tax may be less if this worksheet applies.
Form 8615. Form 8615 must generally be used to figure the tax for any child who was under age 14 on January 1, 2002, and who had more than $1,500 of investment income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions). But if neither of the child’s parents was alive on December 31, 2001, do not use Form 8615 to figure the child’s tax.
Schedule D. If you had a net capital gain on Schedule D (both lines 16 and 17 of Schedule D are gains) and the amount on Form 1040, line 39, is more than zero, use Part IV of Schedule D to figure your tax.
Capital Gain Tax Worksheet. If you received capital gain distributions but you are not required to file Schedule D, use the worksheet on page 34 to figure your tax.
Schedule J. If you had income from farming, your tax may be less if you choose to figure it using income averaging on Schedule J.
Line 41 - Alternative Minimum Tax
Use the worksheet on page 35 to see if you
should fill in Form 6251.
Exception. Fill in Form 6251 instead of
using the worksheet on page 35 if you
claimed or received any of the following items.
- Accelerated depreciation.
- Stock by exercising an incentive stock option and you did not
dispose of the stock in the same year.
- Tax-exempt interest from private activity bonds.
- Intangible drilling, circulation, research, experimental, or mining costs.
- Amortization of pollution-control facilities or depletion.
- Income or (loss) from tax-shelter farm activities or passive activities.
- Percentage-of-completion income from long-term contracts.
- Interest paid on a home mortgage not used to buy, build, or substantially improve your home.
- Investment interest expense reported on Form 4952.
- Net operating loss deduction.
- Alternative minimum tax adjustments from an estate, trust, electing large partnership, or a cooperative.
- Section 1202 exclusion.
Form 6251 should be filled in for a child under age 14 if the child’s adjusted gross income from Form 1040, Line 34,
exceeds the child’s earned income by more than $5,350.
Line 43 - Foreign Tax Credit
If you paid income tax to a foreign country, you may be able to take this credit. But you
must complete and attach Form 1116 to do
Exception. You do not have to file Form 1116 to take this credit if all five of
the following apply.
- All of your gross foreign-source income is from interest and dividends and
all of that income and the foreign tax paid on it is reported to you on Form 1099-INT or Form 1099-DIV (or substitute statement).
- If you have dividend income from shares of stock, you held those shares for at
least 16 days.
- You are not filing Form 4563 or excluding income from sources within Puerto
- The total of your foreign taxes is not more than $300 (not more than $600 if married filing jointly).
- All of your foreign taxes were:
- Legally owed and not eligible for a refund, and
- Paid to countries that are recognized by the United States and do not support terrorism.
For more details about these requirements, see the
Instructions for Form 1116.
Do you meet all five requirements that begin on page 34?
____Yes. Enter on line 43 the smaller of your total foreign tax or the amount on
Form 1040, line 40.
____No. See Form 1116 to find out if you can take the credit and, if you can, if you
have to file Form 1116.
Line 44 - Credit for Child and Dependent Care Expenses
You may be able to take this credit if you paid someone to care for your child under age 13 or your dependent or spouse who
could not care for himself or herself. For details, use Tele-Tax Topic 602
or see Form 2441.
- Credit for the Elderly or the Disabled
You may be able to take this credit if by the end of 2001 (a) you were age 65 or older,
or (b) you retired on permanent and total disability and you had taxable disability
income. But you usually cannot take the credit if the amount on Form 1040, Line 34,
is $17,500 or more ($20,000 if married filing jointly and only one spouse is eligible for
the credit; $25,000 if married filing jointly and both spouses are eligible; $12,500 if
married filing separately). See Schedule R and its instructions for details.
Credit Figured by the IRS. If you can take this credit and you want us to figure it for you, see the Instructions for Schedule R.
Line 46 - Education Credits
If you (or your dependent) paid qualified expenses in 2001 for yourself, your
spouse, or your dependent to enroll in or attend an eligible educational
institution, you may be able to take an education credit. See Form 8863
for details. However, you cannot take an education credit if any of the following apply:
- You are claimed as a dependent on someone's (such as your parent's)
2001 tax return.
- Your filing status is married filing separately.
- The amount on Form 1040, line 34, is $50,000 or more ($100,000 or
more if married filing jointly).
- You (or your spouse) were a nonresident alien for any part of 2001
unless your filing status is married filing jointly.
Line 47- Rate Reduction credit Worksheet
Before you begin:
received (before offset) an advance payment of your 2001 taxes equal to the
amount shown below for your 2001 filing status , stop. You cannot take credit
because you have received the maximum amount of the credit.
- Single or married filing separately -$300
- Head of household-$500
- Married filing jointly or qualifying widow(er) -$600
If you , or your spouse if filling a joint return , can be
claimed as a dependant on another person's return, stop. You cannot take
If you received (before offset) an advance payment and you
filed a joint return for 2000, you and your spouse are each considered to
have received one-half of the payment.
If you received Notice 1257, 1277, or 1278 have it available. The notice shows
the amount of your advance payment (before offset).
Line 48 - Child Tax Credit
What is the Child Tax Credit?
This credit is for people who have a qualifying child as defined in the
instructions for line 6c, column (4), on page 20. It is in addition to the
credit for child and dependent care expenses on Form 1040, line 44, and the
earned income credit on Form 1040, Line 61a.
Three Steps To Take the Child Tax Credit!
Step 1. Make sure you have a qualifying child for the child tax credit.
See the instructions for line 6c, column (4), on page 20.
Step 2. Make sure you checked the box in column (4) of line 6c on Form 1040
for each qualifying child.
Step 3. Answer the questions on this page to see if you may use the worksheet
on page 38 to figure your credit or if you must use Pub. 972, Child Tax
Credit. If you need Pub. 972, see page 7.
Line 49 - Adoption Credit
You may be able to take this credit if you paid expenses in 2001 to adopt a child.
See Form 8839 for details.
Line 50 - Other Credits
Include in the total on Line 50 any of the following credits and check the appropriate
boxes. If box d is checked, also enter the form number. To find out if you can take
the credit, see the form or publication indicated.
- Mortgage interest credit. If a state or local government gave you a mortgage
credit certificate, see Form 8396.
- Credit for prior year minimum tax. If you paid alternative minimum tax in a prior
year, see Form 8801.
- Qualified electric vehicle credit. If you placed a new electric vehicle in service in
2001, see Form 8834.
- General business credit. This credit consists of a number of credits that usually
apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See
Form 3800 or Pub. 334.
- Empowerment zone employment credit. See Form 8844.
- District of Columbia first-time home-buyer credit. See Form
If you sold fuel produced from a nonconventional source, see Internal Revenue Code
section 29 to find out if you can take the nonconventional source fuel credit. If you
can, attach a schedule showing how you figured the credit. Include the credit in the
total on Line 51. Enter the amount and “FNS” on the dotted line next to Line 51.
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