Tax Figured by IRS

If you file by April 15, 2002, you can have the IRS figure your tax for you on Form 1040EZ, Form 1040A, or Form 1040.

If the IRS figures your tax and you paid too much, you will receive a refund. If you did not pay enough, you will receive a bill for the balance. To avoid interest or the penalty for late payment, you must pay the bill within 30 days of the date of the bill or by the due date for your return, whichever is later.

When the IRS cannot figure your tax. The IRS cannot figure your tax for you if any of the following apply.

1. You want your refund directly deposited.
2. You want any of your refund applied to your 2002 estimated tax.
3. Any of your income for the year was from other than wages, salaries, tips, interest, dividends, taxable social security benefits, unemployment compensation, IRA distributions, pensions, and annuities.
4. Your taxable income is $100,000 or more.
5. You itemize deductions.
6. You file any of the following forms.
   1. Form 2555, Foreign Earned Income.
   2. Form 2555-EZ, Foreign Earned Income Exclusion.
   3. Form 4137, Social Security and Medicare Tax on Unreported Tip Income.
   4. Form 4970, Tax on Accumulation Distribution of Trusts.
   5. Form 4972, Tax on Lump-Sum Distributions.
   6. Form 6198, At-Risk Limitations.
   7. Form 6251, Alternative Minimum Tax--Individuals.
   8. Form 8606, Nondeductible IRAs and Coverdell ESAs.
   9. Form 8615, Tax for Children Under Age 14 Who Have Investment Income of More Than $1,500.
   10. Form 8814, Parents' Election To Report Child's Interest and Dividends.
   11. Form 8839, Qualified Adoption Expenses.
   12. Form 8853, Archer MSAs and Long-Term Care Insurance Contracts.

Filing the Return

After you complete the line entries for the tax form you are filing (discussed next), attach the peel-off label, enter your social security number(s), sign the return, and mail it. If you do not have a peel-off label, fill in your name and address. See chapter 1 for more information.

Form 1040EZ Line Entries

Read lines 1 through 9 and fill in the lines that apply to you. If you are filing a joint return, write your taxable income and your spouse's taxable income to the left of line 6.

Earned income credit. If you can take this credit, as discussed in chapter 37, the IRS can figure it for you. Print "EIC" in the space to the right of line 9a. Enter the amount of any nontaxable earned income on line 9b.

If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your return. For details, see that form and its instructions.

Form 1040A Line Entries

Read lines 1 through 25 and fill in the lines that apply to you. If you are filing a joint return, write your taxable income and your spouse's taxable income to the left of line 25. Complete lines 27 through 30, 35, and 37 through 40 if they apply to you. Do not fill in lines 28 and 39a if you want the IRS to figure the credits shown on those lines. Also, enter any write-in information that applies to you in the space to the left of line 41.

Credit for child and dependent care expenses. If you can take this credit, as discussed in chapter 33, complete Schedule 2 and attach it to your return. Enter the amount of the credit on line 27 (Form 1040A). The IRS will not figure this credit.

Credit for the elderly or the disabled. If you can take this credit, as discussed in chapter 34, attach Schedule 3 (1040A), Credit for the Elderly or the Disabled for Form 1040A Filers. Print "CFE" in the space to the left of line 28 (Form 1040A). The IRS will figure this credit for you. On Schedule 3, check the box in Part I for your filing status and age. Complete Part II and lines 11 and 13 of Part III if they apply.

Earned income credit. If you can take this credit, as discussed in chapter 37, the IRS will figure it for you. Print "EIC" directly to the right of line 39a. Enter the amount of any nontaxable earned income on line 39b. If you have a qualifying child, you must fill in Schedule EIC, Earned Income Credit, and attach it to your return.

If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. For details, see that form and its instructions.

Form 1040 Line Entries

Read lines 1 through 39 and fill in the lines that apply to you.

If you are filing a joint return, write your taxable income and your spouse's taxable income in the space under the words "Adjusted Gross Income" on the front of your return.

Read lines 41 through 65. Fill in the lines that apply to you, but do not fill in the "Total" lines. Do not fill in lines 45 and 61a if you want the IRS to figure the credits shown on those lines.

Fill in any forms or schedules asked for on the lines you completed, and attach them to your return.

Credit for child and dependent care expenses. If you can take this credit, as discussed in chapter 33, complete Form 2441 and attach it to your return. Enter the amount of the credit on line 44. The IRS will not figure this credit.

Credit for the elderly or the disabled. If you can take this credit, as discussed in chapter 34, attach Schedule R, Credit for the Elderly or the Disabled. Print "CFE" on the dotted line next to line 45 of Form 1040. The IRS will figure the credit for you. On Schedule R check the box in Part I for your filing status and age. Complete Part II and lines 11 and 13 of Part III if they apply.

Earned income credit. If you can take this credit, as discussed in chapter 37, the IRS will figure it for you. Print "EIC" directly to the right of line 61a of Form 1040. Enter the amount of any nontaxable earned income in the space provided on line 61b. If you have a qualifying child, you must fill in Schedule EIC and attach it to your return.

If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. For details, see that form and its instructions.

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