You may check the box on line 1 if any of the following was true on December 31, 2003.

You may check the box on line 2 if any of the following is true.

A husband and wife may file a joint return even if only one had income or if they did not live together all year. However, both persons must sign the return. If you file a joint return for 2003, you may not, after the due date for filing that return, amend it to file as married filing separately.

If you are married and file a separate return, you will usually pay more tax than if you use another filing status that you qualify for. Also, if you file a separate return, you cannot take the student loan interest deduction, the tuition and fees deduction, the education credits, or the earned income credit. You also cannot take the standard deduction if your spouse itemizes deductions.

Generally, you report only your own income, exemptions, deductions, and credits. Different rules apply to people in community property states. See page 24.

You may be able to file as head of household if you had a child living with you and you lived apart from your spouse during the last 6 months of 2003. See Married Persons Who Live Apart on page 21.

This filing status is for unmarried individuals who provide a home for certain other persons. (Some married persons who live apart may also qualify. See page 21.) You may check the box on line 4 only if as of December 31, 2003, you were unmarried or legally separated (according to your state law) under a decree of divorce or separate maintenance and either 1 or 2 below applies to you.

You may check the box on line 5 and use joint return tax rates for 2003 if all five of the following apply.

If your spouse died in 2003, you may not file as qualifying widow(er) with dependent child. Instead, see the instructions for line 2.

Check the box on line 6b if you file either (a) a joint return or (b) a separate return and your spouse had no income and is not filing a return. However, do not check the box if your spouse can be claimed as a dependent on another person's return. If you were divorced or legally separated at the end of 2003, you cannot take an exemption for your former spouse. If, at the end of 2003, your divorce was not final (an interlocutory decree), you are considered married for the whole year.

You can take an exemption for each of your dependents who was alive during some part of 2003. This includes a baby born in 2003 or a person who died in 2003. For more details, see Pub. 501. Any person who meets all five of the following tests qualifies as your dependent.

If you have more than six dependents, attach a statement to your return with the required information.

The person must be either your relative or have lived in your home all year as a member of your household. If the person is not your relative, the relationship must not violate local law.

The following people are considered your relatives.

Any relationships established by marriage are not treated as ended by divorce or death.

If the person is married and files a joint return, you cannot take an exemption for the person.

If the person and the person's spouse file a joint return only to get a refund and no tax liability would exist for either spouse on separate returns, you may be able to claim him or her if the other four tests
are met.

The person must be one of the following:

To find out who is a resident alien, use TeleTax topic 851 (see page 10) or see Pub. 519.

Generally, the person's gross income must be less than $3,050. Gross income does not include nontaxable income, such as welfare benefits or nontaxable social security benefits. Income earned by a permanently and totally disabled person for services performed at a sheltered workshop school is generally not included for purposes of the income test. See Pub. 501 for details.

The general rule is that you had to provide over half the person's total support in 2003. If you file a joint return, support can come from either spouse. If you remarried, the support provided by your new spouse is treated as support coming from you. For exceptions to the support test, see Children of Divorced or Separated Parents and Person Supported by Two or More Taxpayers on this page.

Support includes food, a place to live, clothing, medical and dental care, and education. It also includes items such as a car and furniture, but only if they are for the person's own use or benefit. In figuring total support:

Support does not include items such as income tax, social security and Medicare tax, life insurance premiums, scholarship grants, or funeral expenses.

If you care for a foster child, see Pub. 501 for special rules that apply.

Enter the total of your wages, salaries, tips, etc. If a joint return, also include your spouse's income. For most people, the amount to enter on this line should be shown in box 1 of their Form(s) W-2. But the following types of income must also be included in the total on line 7.

Each payer should send you a Form 1099-INT or Form 1099-OID. Enter your total taxable interest income on line 8a. But you must fill in and attach Schedule 1, Part I, if the total is over $1,500 or any of the other conditions listed at the beginning of the Schedule 1 instructions apply to you.

Include taxable interest from seller-financed mortgages, banks, savings and loan associations, money market certificates, credit unions, savings bonds, etc. Interest credited in 2003 on deposits that you could not withdraw because of the bankruptcy or insolvency of the financial institution may not have to be included in your 2003 income. For details, see Pub. 550.

If you get a 2003 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2003, see Pub. 550.

If you received any tax-exempt interest, such as from municipal bonds, report it on line 8b. Include any exempt-interest dividends from a mutual fund. Do not include interest earned on your IRA or Coverdell education savings account.

Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends on line 9a. This amount should be shown in box 1a of your Form(s) 1099-DIV. But you must fill in and attach Schedule 1, Part II, if the total is over $1,500 or you received, as a nominee, ordinary dividends that actually belong to someone else. You must use Form 1040 if you received nontaxable distributions required to be reported as capital gains.

For more details, see Pub. 550.

Enter your total qualified dividends on line 9b. Qualified dividends are eligible for a lower tax rate than other ordinary income. Generally, these dividends are shown in box 1b of your Form(s) 1099-DIV. See Pub. 550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.

Be sure you use the Qualified Dividends and Capital Gain Tax Worksheet on page 34 to figure your tax. Your tax may be less if you use this worksheet.

Each payer should send you a Form 1099-DIV. Do any of the Forms 1099-DIV or substitute statements you, or your spouse if filing a joint return, received have an amount in box 2c (qualified 5-year gain), box 2d (unrecaptured section 1250 gain), box 2e (section 1202 gain), or box 2f (collectibles (28%) gain)?

Yes.	You must use Form 1040.
No.	You may use Form 1040A. See below for instructions on how to complete lines 10a and 10b.

On line 10a, enter your total capital gain distributions from box 2a of Form 1099-DIV. On line 10b, enter your post-May 5 capital gain distributions from box 2b of Form 1099-DIV. Also, be sure you use the Qualified Dividends and Capital Gain Tax Worksheet on page 34 to figure your tax. Your tax may be less if you use this worksheet.

If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on lines 10a and 10b only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee. See the Schedule 1 instructions for filing requirements for Forms 1099-DIV and 1096.

You should receive a Form 1099-R showing the amount of any distribution from your IRA. Unless otherwise noted in the line 11a and 11b instructions, an IRA includes a traditional IRA, Roth IRA, simplified employee pension (SEP) IRA, and a savings incentive match plan for employees (SIMPLE) IRA. Except as provided below, leave line 11a blank and enter the total distribution on line 11b.

You should receive a Form 1099-R showing the amount of your pension and annuity payments. See this page for details on rollovers and lump-sum distributions.

Do not report on lines 12a and 12b disability pensions received before you reach the minimum retirement age set by your employer. Instead, report them on line 7.

Attach Form(s) 1099-R to Form 1040A if any Federal income tax was withheld.

If you received U.S. Civil Service retirement benefits and you chose the alternative annuity option, see Pub. 721 to figure the taxable part of your annuity. Do not use the worksheet on page 27.

Lump-Sum Distributions.   If you received a lump-sum distribution from a profit-sharing or retirement plan, your Form 1099-R should have the “Total distribution” box in box 2b checked. You must use Form 1040 if you owe additional tax because you received an early distribution from a qualified retirement plan and the total amount was not rolled over. See Pub. 575 to find out if you owe this tax.

  Enter the total distribution on line 12a and the taxable part on line 12b.

  

  You may be able to pay less tax on the distribution if you were born before January 2, 1936, you meet certain other conditions, and you choose to use Form 4972 to figure the tax on any part of the distribution. You may also be able to use Form 4972 if you are the beneficiary of a deceased employee who was born before January 2, 1936. But you must use Form 1040 to do so. For details, see Form 4972.

You should receive a Form SSA-1099 showing in box 3 the total social security benefits paid to you. Box 4 will show the amount of any benefits you repaid in 2003. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1099.

Use the worksheet on page 29 to see if any of your benefits are taxable.

If you were an eligible educator in 2003, you can deduct up to $250 of qualified expenses you paid in 2003. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 900 hours during a school year.

Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary.

Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. You must reduce your qualified expenses by the following amounts.

For more details, use TeleTax topic 458 (see page 10).

If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2003, you must report them on Form 8606.

If you made contributions to a traditional IRA for 2003, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have had earned income to do so. A statement should be sent to you by June 1, 2004, that shows all contributions to your traditional IRA for 2003.

Use the worksheet on page 30 to figure the amount, if any, of your IRA deduction. But read the following list before you fill in the worksheet.

If you made contributions to both a traditional IRA and a Roth IRA for 2003, do not use the worksheet on page 30. Instead, use the worksheet in Pub. 590 to figure the amount, if any, of your IRA deduction.

By April 1 of the year after the year in which you reach age 70½, you must start taking minimum required distributions from your traditional IRA. If you do not, you may have to pay a 50% additional tax on the amount that should have been distributed. For details, including how to figure the minimum required distribution, see Pub. 590.

You must use Form 1040 if you owe tax on any excess contributions made to an IRA or any excess accumulations in an IRA. For details, see Pub. 590.

Social Security Benefits Worksheet—Lines 14a and 14b

1.		Enter the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099				1.
2.		Enter one-half of line 1							2.
3.		Enter the total of the amounts from Form 1040A, lines 7, 8a, 9a, 10a, 11b, 12b, and 13							3.
4.		Enter the amount, if any, from Form 1040A, line 8b							4.
5.		Add lines 2, 3, and 4							5.
6.		Enter the total of the amounts from Form 1040A, lines 16 and 17							6.
7.		Is the amount on line 6 less than the amount on line 5?
			No.		None of your social security benefits are taxable.
			Yes. Subtract line 6 from line 5						7.
8.		If you are: Married filing jointly, enter $32,000. Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2003, enter $25,000.							8.
		Married filing separately and you lived with your spouse at any time in 2003, skip lines 8 through 15; multiply line 7 by 85% (.85) and enter the result on line 16. Then go to line 17.
9.		Is the amount on line 8 less than the amount on line 7?
			No.		None of your social security benefits are taxable. You do not have to enter any amount on line 14a or 14b of Form 1040A. But if you are married filing separately and you lived apart from your spouse for all of 2003, enter -0- on line 14b. Be sure you entered “D” to the right of the word “benefits” on line 14a.
			Yes. Subtract line 8 from line 7						9.
10.		Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2003							10.
11.		Subtract line 10 from line 9. If zero or less, enter -0-							11.
12.		Enter the smaller of line 9 or line 10							12.
13.		Enter one-half of line 12							13.
14.		Enter the smaller of line 2 or line 13							14.
15.		Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-							15.
16.		Add lines 14 and 15							16.
17.		Multiply line 1 by 85% (.85)							17.
18.		Taxable social security benefits. Enter the smaller of line 16 or line 17							18.
	Enter the amount from line 1 above on Form 1040A, line 14a. Enter the amount from line 18 above on Form 1040A, line 14b.
			If part of your benefits are taxable for 2003 and they include benefits paid in 2003 that were for an earlier year, you may be able to reduce the taxable amount. See Pub. 915 for details.

[D]

IRA Deduction Worksheet—Line 17

Your IRA

Spouse's IRA

1a.

Were you covered by a retirement plan (see page 31)?

1a.

Yes No

b.

If married filing jointly, was your spouse covered by a retirement plan?

1b.

Yes No

Next. If you checked “No” on line 1a (and “No” on line 1b if married filing jointly), skip lines 2 through 6, enter $3,000 ($3,500 if age 50 or older at the end of 2003) on line 7a (and 7b if applicable), and go to line 8. Otherwise, go to line 2.

2.

Enter the amount shown below that applies to you.

Single, head of household, or married filing separately and you lived apart from your spouse for all of 2003, enter $50,000

Qualifying widow(er), enter $70,000

2a.

2b.

Married filing jointly, enter $70,000 in both columns. But if you checked “No” on either line 1a or 1b, enter $160,000 for the person who was not covered by a plan Married filing separately and you lived with your spouse at any time in 2003, enter $10,000

3.

Enter the amount from Form 1040A, line 15

3.

4.

Enter the amount, if any, from Form 1040A, line 16

4.

5.

Subtract line 4 from line 3. Enter the result in both columns

5a.

5b.

6.

Is the amount on line 5 less than the amount on line 2?

No.

None of your IRA contributions are deductible. For details on nondeductible IRA contributions, see Form 8606.

Yes.

Subtract line 5 from line 2 in each column. If the result is $10,000or more, enter $3,000 ($3,500 if age 50 or older at the end of 2003) on line 7 for that column and go to line 8. Otherwise, go to line 7

6a.

6b.

7.

Multiply lines 6a and 6b by 30% (.30) (or by 35% (.35) in the column for the IRA of a person who is age 50 or older at the end of 2003). If the result is not a multiple of $10, increase it to the next multiple of $10 (for example, increase $490.30 to $500). If the result is $200 or more, enter the result. But if it is less than $200, enter $200

7a.

7b.

8.

Enter the amount from Form 1040A, line 7

8.

If married filing jointly and line 8 is less than $6,000 ($6,500 if one spouse is age 50 or older at the end of 2003; $7,000 if both spouses are age 50 or older at the end of 2003), stop here and see Pub. 590 to figure your IRA deduction.

9.

Enter traditional IRA contributions made, or that will be made by April 15, 2004, for 2003 to your IRA on line 9a and to your spouse's IRA on line 9b

9a.

9b.

10.

On line 10a, enter the smallest of line 7a, 8, or 9a. On line 10b, enter the smallest of line 7b, 8, or 9b. This is the most you can deduct. Add the amounts on lines 10a and 10b and enter the total on Form 1040A, line 17. Or, if you want, you may deduct a smaller amount and treat the rest as a nondeductible contribution (see Form 8606)

10a.

10b.

You may also be able to take the retirement savings contributions credit. See the instructions for line 32 on page 36.

[D]

If you were covered by a retirement plan and you file Form 8815 or you excluded employer-provided adoption benefits, see Pub. 590 to figure the amount, if any, of your IRA deduction.

You can take this deduction only if all of the following apply.

Use the worksheet below to figure your student loan interest deduction.

Qualified Student Loan.   This is any loan you took out to pay the qualified higher education expenses for yourself, your spouse, or anyone who was your dependent when the loan was taken out. The person for whom the expenses were paid must have been an eligible student (defined below). However, a loan is not a qualified student loan if (a) any of the proceeds were used for other purposes or (b) the loan was from either a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. To find out who is a related person, see Pub. 970.

  Qualified higher education expenses generally include tuition, fees, room and board, and related expenses such as books and supplies. The expenses must be for education in a degree, certificate, or similar program at an eligible educational institution. An eligible educational institution includes most colleges, universities, and certain vocational schools. You must reduce the expenses by the following benefits.

• Employer-provided educational assistance benefits that are not included in box 1 of your Form(s) W-2.
• Excludable U.S. series EE and I savings bond interest from Form 8815.
• Nontaxable qualified state tuition program earnings.
• Nontaxable earnings from Coverdell education savings accounts.
• Any scholarship, educational assistance allowance, or other payment (but not gifts, inheritances, etc.) excluded from income.

  For more details on these expenses, see Pub. 970.

  An eligible student is a person who:

• Was enrolled in a degree, certificate, or other program (including a program of study abroad that was approved for credit by the institution at which the student was enrolled) leading to a recognized educational credential at an eligible educational institution and
• Carried at least half the normal full-time workload for the course of study he or she was pursuing.

Student Loan Interest Deduction Worksheet—Line 18

1.		Enter the total interest you paid in 2003 on qualified student loans (defined above). Do not enter more than $2,500						1.
2.		Enter the amount from Form 1040A, line 15				2.
3.		Enter the total of the amounts from Form 1040A, lines 16 and 17				3.
4.		Subtract line 3 from line 2				4.
5.		Enter the amount shown below for your filing status.
	Single, head of household, or qualifying widow(er)—$50,000 Married filing jointly—$100,000					5.
6.		Is the amount on line 4 more than the amount on line 5?
		No.	Skip lines 6 and 7, enter -0- on line 8, and go to line 9.
		Yes.	Subtract line 5 from line 4			6.
7.		Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000						7.	.
8.		Multiply line 1 by line 7						8.
9.		Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on Form 1040A, line 18						9.

[D]

You can take this deduction only if all of the following apply.

Use the worksheet below to figure your tuition and fees deductions.

Most people can find their standard deduction by looking at the amounts listed under “All others” to the left of line 24 of Form 1040A. But if you, or your spouse if filing jointly, can be claimed as a dependent on someone's 2003 return or you checked any box on line 23a, use the chart or worksheet on page 33 that applies to you to figure your standard deduction. Also, if you checked the box on line 23b, you cannot take the standard deduction even if you were born before January 2, 1939, or were blind.

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 the Tax Table on pages 58–63 to figure your tax unless you are required to use Form 8615 (see page 36), or the Qualified Dividends and Capital Gain Tax Worksheet (see page 34). Also include in the total on line 28 any of the following taxes.

Tax From Recapture of Education Credits.   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 2003 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” to the left of the entry space for line 28.

Standard Deduction Chart for People Born Before January 2, 1939, or Who Were Blind—Line 24

Do not use this chart if someone can claim you, or your spouse if married filing jointly, as a dependent. Instead, use the worksheet below.
Enter the number from the box on line 23a of Form 1040A				▶				Do not use the number of exemptions from line 6d.
IF your filing status is . . .				AND the number in the box above is . . .					THEN enter on Form 1040A, line 24 . . .
Single				1 2						$5,900 7,050
Married filing jointly or Qualifying widow(er)				1 2 3 4						$10,450 11,400 12,350 13,300
Married filing separately				1 2 3 4						$5,700 6,650 7,600 8,550
Head of household				1 2						$8,150 9,300

Standard Deduction Worksheet for Dependents—Line 24

Keep for your Records

Use this worksheet only if someone can claim you, or your spouse if married filing jointly, as a dependent.

1.		Add $250 to the amount from Form 1040A, line 7. Enter the total				1.
2.		Minimum standard deduction				2.	750.00
3.		Enter the larger of line 1 or line 2				3.
4.		Enter the amount shown below for your filing status.
	Single or married filing separately—$4,750 Married filing jointly or qualifying widow(er)—$9,500 Head of household—$7,000				.	4.
5.		Standard deduction.
	a.	Enter the smaller of line 3 or line 4. If born after January 1, 1939, and not blind, stop here and enter this amount on Form 1040A, line 24. Otherwise, go to line 5b				5a.
	b.	If born before January 2, 1939, or blind, multiply the number on Form 1040A, line 23a, by: $950 ($1,150 if single or head of household)				5b.
	c.	Add lines 5a and 5b. Enter the total here and on Form 1040A, line 24				5c.

If filing for a child who was under age 14 at the end of 2003, add the amount on Form 1040A, line 22, to the child's tax-exempt interest from private activity bonds issued after August 7, 1986. If that total is more than the total of $5,600 plus the amount on Form 1040A, line 7, do not file this form. Instead, file Form 1040 for the child. Use Form 6251 to see if the child owes this tax.

Alternative Minimum Tax Worksheet—Line 28

1.		Enter the amount from Form 1040A, line 22, plus any tax-exempt interest from private activity bonds issued after August 7, 1986							1.
2.		Enter the amount shown below for your filing status.
		Single or head of household—$40,250 Married filing jointly or qualifying widow(er)—$58,000 Married filing separately—$29,000							2.
3.		Subtract line 2 from line 1. If zero or less, stop here; you do not owe this tax							3.
4.		Is your filing status married filing separately?
		No.		Skip lines 4 and 5; enter the amount from line 3 on line 6, and go to line 7.
		Yes.		Subtract $75,000 from the amount on line 1. If zero or less, enter -0- here and on line 5,
				and go to line 6	4.
5.		Multiply line 4 by 25% (.25)							5.
6.		Add lines 3 and 5							6.
7.		Multiple line 6 by 26% (.26)			7.
8.		Did you use the Qualified Dividends and Capital Gain Tax Worksheet on page 34 to figure the tax on the amount on Form 1040A, line 27?
		No.		Skip lines 8 through 27; enter the amount from line 7 on line 28 and go to line 29.
		Yes.		Enter the amount from line 4 of that
				worksheet	8.
9.		Enter the smaller of line 6 or line 8							9.
10.		Subtract line 9 from line 6							10.
11.		Multiply line 10 by 26% (.26)										11.
12.		Enter the amount from line 8 of the Qualified Dividends and Capital Gain Tax Worksheet on page 34. If line 8 is zero or blank, enter -0- here and on
		line 13 below and go to line 19							12.
13.		Enter the smaller of line 9 or line 12							13.
14.		Add the amounts on Form 1040A, lines 9b and 10b			14.
15.		Enter the smaller of line 13 or line 14							15.
16.		Multiply line 15 by 5% (.05)										16.
17.		Subtract line 15 from line 13							17.
18.		Multiply line 17 by 10% (.10)										18.
		If lines 8 and 13 are the same, skip lines 19 through 26 and go to line 27. Otherwise, go to line 19.
19.		Subtract line 13 from line 9							19.
20.		Add the amounts on Form 1040A, lines 9b and 10b			20.
21.		Enter the amount from line 15. If line 15 is blank, enter -0-			21.
22.		Subtract line 21 from line 20			22.
23.		Enter the smaller of line 19 or line 22							23.
24.		Multiply line 23 by 15% (.15)										24.
25.		Subtract line 23 from line 19							25.
26.		Multiply line 25 by 20% (.20)										26.
27.		Add lines 11, 16, 18, 24, and 26										27.
28.		Enter the smaller of line 7 or line 27										28.
29.		Enter the amount you would enter on Form 1040A, line 28, if you do not owe this tax										29.
30.		Alternative minimum tax. Is the amount on line 28 more than the amount on line 29?
		No.		You do not owe this tax.
		Yes.		Subtract line 29 from line 28. Also include this amount in the total on Form 1040A, line 28. Enter “AMT” and show the amount in the space to the left of line 28								30.

[D]

Form 8615 must generally be used to figure the tax if this return is for a child who was under age 14 at the end of 2003, and who had more than $1,500 of investment income, such as taxable interest, ordinary dividends, or capital gain distributions. But if neither of the child's parents was alive at the end of 2003, do not use Form 8615 to figure the child's tax.

A child born on January 1, 1990, is considered to be age 14 at the end of 2003. Do not use Form 8615 for such a child.

If you received qualified dividends or capital gain distributions, use the worksheet on page 34 to figure your tax.

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 TeleTax topic 602 (see page 10) or see Schedule 2 and its instructions.

You may be able to take this credit if by the end of 2003 (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 1040A, line 22, is $17,500 or more ($20,000 or more if married filing jointly and only one spouse is eligible for the credit; $25,000 or more if married filing jointly and both spouses are eligible; $12,500 or more if married filing separately). See Schedule 3 and its instructions for details.

If you (or your dependent) paid qualified expenses in 2003 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 may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions to a traditional or Roth IRA, (b) elective deferrals to a 401(k), 403(b), governmental 457, SEP, or SIMPLE plan, (c) voluntary employee contributions to a qualified retirement plan (including the Federal Thrift Savings Plan), or (d) contributions to a 501(c)(18)(D) plan.

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

You were a student if during any 5 months of 2003 you:

A school includes technical, trade, and mechanical schools. It does not include on-the-job training courses, correspondence schools, or night schools.

For more details, use TeleTax topic 610 (see page 10) or see Form 8880.

This credit is for people who have a qualifying child as defined below. It is in addition to the credit for child and dependent care expenses on Form 1040A, line 29, and the earned income credit on Form 1040A, line 41.

1. Is the amount on Form 1040A, line 22, more than the amount shown below for your filing status?

You must use Pub. 972 to figure your credit.

2. Are you claiming the adoption credit on Form 8839 (see the instructions for Form 1040A, line 34, on page 39)? Use the worksheet on page 38 to figure your child tax credit. You must use
Pub. 972 to figure your child tax credit. You will also need Form 8839.

You may be able to take this credit if either of the following applies.

See the Instructions for Form 8839 for details.

Enter the total amount of advance earned income credit (EIC) payments you received. These payments are shown in box 9 of your Form(s) W-2.

Add the amounts shown as Federal income tax withheld on your Forms W-2 and 1099-R. Enter the total on line 39. The amount of Federal income tax withheld should be shown in box 2 of Form W-2 and in box 4 of Form 1099-R.

If you received a 2003 Form 1099 showing Federal income tax withheld on dividends, interest income, unemployment compensation, or social security benefits, include the amount withheld in the total on line 39. This should be shown in box 4 of the Form 1099 or box 6 of Form SSA-1099. If Federal income tax was withheld from your Alaska Permanent Fund dividends, include the tax withheld in the total on line 39.

Enter any estimated Federal income tax payments you made using Form 1040-ES for 2003. Include any overpayment from your 2002 return that you applied to your 2003 estimated tax.

If you and your spouse paid joint estimated tax but are now filing separate income tax returns, you can divide the amount paid in any way you choose as long as you both agree. If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2003. For an example of how to do this, see Pub. 505. Be sure to show both social security numbers (SSNs) in the space provided on the separate returns. If you or your spouse paid separate estimated tax but you are now filing a joint return, add the amounts you each paid. Follow these instructions even if your spouse died in 2003 or in 2004 before filing a 2003 return. Also, see Pub. 505 if either of the following apply.

The EIC is a credit for certain people who work. The credit may give you a refund even if you do not owe any tax.

If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you will not be allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you will not be allowed to take the credit for 10 years. You may also have to pay penalties.

1. If, in 2003:

You cannot take the credit.

2. Do you, and your spouse if filing a joint return, have a social security number that allows you to work or is valid for EIC purposes (see page 43)? You cannot take the credit. Put “No” to the left of the entry space for line 41.

3. Is your filing status married filing separately? You cannot take the credit.

4. Were you a nonresident alien for any part of 2003? See Nonresident Aliens on page 43. Go to Step 2.

1. Add the amounts from
Form 1040A:

2. Is your investment income more than $2,600? You cannot take the credit.

3. Did a child live with you in 2003? Go to Step 3 on page 41. Go to Step 4 on
page 41.

	Son, daughter, adopted child, stepchild, or a descendant of any of them (for example, your grandchild)
	or
	Brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew) whom you cared for as you would your own child
	or
	Foster child (any child placed with you by an authorized placement agency whom you cared for as you would your own child)
was at the end of 2003...
Under age 19
or
Under age 24 and a student (see page 43)
or
Any age and permanently and totally disabled (see page 43)
who...
Lived with you in the United States for more than half of 2003. If the child did not live with you for the required time, see Exception to “Time Lived With You” Condition on page 42.
	Note. If the child was married, see page 43.

1. Look at the qualifying child conditions above. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2003? You cannot take the credit. Put “No” to the left of the entry space for line 41.

2. Do you have at least one child who meets the above conditions to be your qualifying child? Go to
question 3. Skip question 3; go to Step 4, question 2.

3. Does the child meet the conditions to be a qualifying child of any other person (other than your spouse if filing a joint return) for 2003? See Qualifying Child of More Than One Person on
page 43. This child is your qualifying child. The child must have a valid social security number as defined on page 43 unless the child was born and died in 2003. Skip Step 4; go to Step 5 on page 42.

1. Look at the qualifying child conditions in Step 3. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2003? You cannot take the credit. Put “No” to the left of the entry space for line 41.

2. Can you, or your spouse if filing a joint return, be claimed as a dependent on someone else's 2003 tax return? You cannot take the credit.

3. Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2003? You cannot take the credit.

4. Was your home, and your spouse's if filing a joint return, in the United States for more than half of 2003? Members of the military stationed outside the United States, see page 43 before you answer. Go to Step 5
on page 42. You cannot take the credit. Put “No” to the left of the entry space for line 41.

1. Figure earned income:

	Form 1040A, line 7
Subtract, if included on line 7, any:
•	Taxable scholarship or fellowship grant not reported on a Form W-2.
•	Amount paid to an inmate in a penal institution for work (put “PRI” and the amount subtracted to the left of the entry space for line 7 of Form 1040A).
•	Amount received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (put “DFC” and the amount subtracted to the left of the entry space for line 7 of Form 1040A). This amount may be shown in box 11 of your Form W-2. If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity.		–
	Earned Income =

2. If you have:

Go to Step 6. You cannot take the credit.

1. Do you want the IRS to figure the credit for you? See Credit Figured by the IRS on this page. Go to the worksheet on page 44.

This credit is for certain people who have a qualifying child as defined in the instructions for line 6c, column (4), on page 23. The additional child tax credit may give you a refund even if you do not owe any tax.

If line 44 is under $1, we will send the refund only if you request it when you file your return.

If you want to check the status of your refund, please wait at least 6 weeks (3 weeks if you filed electronically) from the date you filed to do so. But, if you filed Form 8379 with your return, allow 14 weeks (11 weeks if you filed electronically). See page 10 for details.

If the amount you overpaid is large, you may want to decrease the amount of income tax withheld from your pay by filing a new Form W-4. See Income Tax Withholding and Estimated Tax Payments for 2004 on page 53.

Receive your refund in as few as 10 days with IRS e-file!

Complete lines 45b through 45d if you want us to directly deposit the amount shown on line 45a into your checking or savings account at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) instead of sending you a check.

You can check with your financial institution to make sure your direct deposit will be accepted and to get the correct routing and account numbers. The IRS is not responsible for a lost refund if you enter the wrong account information.

If you file a joint return and fill in lines 45b through 45d, you are appointing your spouse as an agent to receive the refund. This appointment cannot be changed later.

Line 45d.   The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. On the sample check on page 51, the account number is 20202086. Be sure not to include the check number.

  

  Some financial institutions will not allow a joint refund to be deposited into an individual account. The IRS is not responsible if a financial institution rejects a direct deposit. If the direct deposit is rejected, a check will be sent instead.

Sample Check—Lines 45b Through 45d

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Sample Check-Lines 45b through 45d

Enter on line 46 the amount, if any, of the overpayment on line 44 you want applied to your estimated tax for 2004. We will apply this amount to your account unless you attach a statement requesting us to apply it to your spouse's account. Include your spouse's social security number in the attached statement.

This election to apply part or all of the amount overpaid to your 2004 estimated tax cannot be changed later.

You do not have to pay if line 47 is under $1.

Include any estimated tax penalty from line 48 in the amount you enter on line 47.

You can pay by check, money order, or credit card. Do not include any estimated tax payment for 2004 in your check, money order, or amount you charge. Instead, make the estimated tax payment separately.

To Pay by Credit Card.   You may use your American Express® Card, Discover® Card, MasterCard® card, or Visa® card. To pay by credit card, call toll free or visit the website of either service provider listed on this page and follow the instructions. A convenience fee will be charged by the service provider based on the amount you are paying. Fees may vary between the providers. You will be told what the fee is during the transaction and you will have the option to either continue or cancel the transaction. You can also find out what the fee will be by calling the provider's toll-free automated customer service number or visiting the provider's website shown below. If you pay by credit card before filing your return, please enter on page 1 of Form 1040A in the upper left corner the confirmation number you were given at the end of the transaction and the amount you charged (not including the convenience fee).

	Link2Gov Corporation 1-888-PAY-1040 SM (1-888-729-1040) 1-888-658-5465 (Customer Service) www.PAY1040.com
	Official Payments Corporation 1-800-2PAY-TAX SM (1-800-272-9829) 1-877-754-4413 (Customer Service) www.officialpayments.com

  

  You may need to (a) increase the amount of income tax withheld from your pay by filing a new Form W-4 or (b) make estimated tax payments for 2004. See Income Tax Withholding and Estimated Tax Payments for 2004 on page 53.

If you cannot pay the full amount shown on line 47 when you file, you may ask to make monthly installment payments. You may have up to 60 months to pay. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2004, even if your request to pay in installments is granted. You must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan.

To ask for an installment agreement, use Form 9465. You should receive a response to your request for installments within 30 days. But if you file your return after March 31, it may take us longer to reply.

You may owe this penalty if:

The “tax shown on your return” is the amount on line 38 minus the total of any amounts shown on lines 41 and 42.

Exception.   You will not owe the penalty if your 2002 tax return was for a tax year of 12 full months and either of the following applies.

1. You had no tax liability for 2002 and you were a U.S. citizen or resident for all of 2002 or
2. The total of lines 39 and 40 on your 2003 return is at least as much as the tax liability shown on your 2002 return. Your estimated tax payments for 2003 must have been made on time and for the required amount.

  

  If your 2003 filing status is married filing separately and your 2002 adjusted gross income was over $75,000, item 2 above may not apply. For details, see Form 2210 and its instructions.

Figuring the Penalty.   If the Exception above does not apply and you choose to figure the penalty yourself, see Form 2210 to find out if you owe the penalty. If you do, you can use the form to figure the amount. Enter the penalty on Form 1040A, line 48. Add the penalty to any tax due and enter the total on line 47. If you are due a refund, subtract the penalty from the overpayment you show on line 44. Do not file Form 2210 with your return unless Form 2210 indicates that you must do so. Instead, keep it for your records.

  

  Because Form 2210 is complicated, if you want to, you can leave line 48 blank and the IRS will figure the penalty and send you a bill. We will not charge you interest on the penalty if you pay by the date specified on the bill. If your income varied during the year, the annualized income installment method may lower the amount of your penalty. But you must file Form 2210 because the IRS cannot figure your penalty under this method. See the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.