Instructions for Schedule J |
2003 Tax Year |
Specific Instructions
This is archived information that pertains only to the 2003 Tax Year. If you are looking for information for the current tax year, go to the Tax Prep Help Area.
To figure elected farm income, first figure your taxable income from farming. Taxable income from farming includes all income, gains,
losses, and deductions attributable to any farming business. However, it does not include gain from the sale or other disposition
of land.
Your elected farm income is the amount of your taxable income from farming that you elect to include on line 2. You do not have to
include all of your taxable income from farming on line 2. It may be to your advantage to include less than the full amount,
depending on how the
amount you include on line 2 affects your tax bracket for the current and prior 3 tax years.
Your elected farm income cannot exceed your taxable income. Also, the portion of your elected farm income treated as a net
capital gain cannot
exceed the smaller of your total net capital gain or your net capital gain attributable to your farming business. If your elected farm
income includes net capital gain, you must allocate an equal portion of the net capital gain to each of the base years. If,
for any base year, you had
a capital loss that resulted in a capital loss carryover to the next tax year, do not reduce the elected farm income allocated to that base
year by any part of the carryover.
Farming Business.
A farming business is the trade or business of cultivating land or raising or harvesting any agricultural or horticultural
commodity. This
includes:
- Operating a nursery or sod farm;
- Raising or harvesting of trees bearing fruits, nuts, or other crops;
- Raising ornamental trees (but not evergreen trees that are more than 6 years old when severed from the roots);
- Raising, shearing, feeding, caring for, training, and managing animals; and
- Leasing land to a tenant engaged in a farming business, but only if the lease payments are (a) based on a share of the
tenant's production (not a fixed amount) and (b) determined under a written agreement entered into before the tenant begins significant
activities on the land.
A farming business does not include:
- Contract harvesting of an agricultural or horticultural commodity grown or raised by someone else or
- Merely buying or reselling plants or animals grown or raised by someone else.
Generally, farm income, gains, losses, and deductions are reported on:
- Form 1040, line 7, to the extent of wages and other compensation you received as a shareholder in an S corporation engaged in a
farming business;
- Schedule D;
- Schedule E, Part II;
- Schedule F;
- Form 4797; and
- Form 4835.
Figure the tax on the amount on line 3 using the 2003 Tax Table, Tax Rate Schedules, or Qualified Dividends and Capital Gain Tax
Worksheet from your 2003 Form 1040 instruction booklet, or use Schedule D. Enter the tax on line 4.
If you used Schedule J to figure your tax for 2002 (that is, you entered the amount from line 22 of that Schedule J on Form
1040, line 42, or on
Form 1040X), enter on line 5 the amount from line 11 of your 2002 Schedule J. If you used Schedule J to figure your tax for
2001 but not 2002, enter
on line 5 the amount from line 15 of your 2001 Schedule J. If you used Schedule J to figure your tax for 2000 but not 2001
nor 2002, enter on line 5
the amount from line 3 of your 2000 Schedule J.
If you figured your tax for 2000, 2001, and 2002 without using Schedule J, enter on line 5 the taxable income from your 2000
tax return (or as
previously adjusted by the IRS, an amended return, etc.). But if that amount is zero or less, complete the worksheet below
to figure the amount to
enter on line 5.
If you filed your 2000 tax return using TeleFile, enter the taxable income from your TeleFile Tax Record. If you did not file
a tax return for
2000, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to
keep all your records for
2000 for at least 3 years after April 15, 2004 (or the date you file your 2003 tax return, if later), even if you did not
file a tax return for 2000.
Instructions for 2000 Taxable Income Worksheet
Line 2.
Any net capital loss deduction on your 2000 Schedule D, line 18, is not allowed for farm income averaging purposes
to the extent it did not reduce
your capital loss carryover to 2001. This could happen if the taxable income before subtracting exemptions shown on your 2000
Form 1040, line 37 (or
as previously adjusted), was less than zero. Enter the amount by which your 2000 capital loss carryover to 2001 (the sum of
your short- and long-term
capital loss carryovers) exceeds the excess of the loss on your 2000 Schedule D, line 17, over the loss on your 2000 Schedule
D, line 18. If you had
any net operating loss (NOL) carrybacks to 2000, be sure you refigured your 2000 capital loss carryover to 2001.
Line 3.
If you had an NOL for 2000, enter the amount of that NOL as figured on line 27 of the 2000 Form 1045, Schedule A,
you filed with Form
1045 or Form 1040X. If you did not have an NOL for 2000, enter the portion, if any, of the NOL carryovers and carrybacks to 2000
that were not
used in 2000 and were carried to years after 2000.
Example.
John Farmington did not use farm income averaging for 2000, 2001, nor 2002. John has $18,000 of elected farm income
on line 2. The taxable income
before subtracting exemptions shown on his 2000 Form 1040, line 37, was $3,800. A deduction for exemptions of $2,800 was shown
on line 38, and line
39, taxable income, was $1,000. However, John had a $22,550 NOL in 2001, $9,000 of which was remaining to carry to 2000 after
the NOL was carried back
to 1999. To complete line 1 of the worksheet, John combines the $9,000 NOL deduction with the $1,000 from his 2000 Form 1040,
line 39. The result is a
negative $8,000, John's 2000 taxable income, which he enters as a positive amount on line 1 of the 2000 worksheet.
When John filed his 2000 tax return, he had a $3,000 net capital loss deduction on Schedule D, line 18 (which was
also entered on Form 1040, line
13), a $7,000 loss on Schedule D, line 17, and a $4,000 capital loss carryover to 2001. However, when John carried back the
2001 NOL to 2000, he
refigured his 2000 capital loss carryover to 2001 as $7,000. John adds the $3,000 from Schedule D, line 18, and the $7,000
carryover. He subtracts
from the result the $7,000 loss on his Schedule D, line 17, and enters $3,000 on line 2 of the worksheet.
John had $1,000 of taxable income in 2000 that reduced the 2001 NOL carryback. The $2,800 of exemptions and $3,000
net capital loss deduction also
reduced the amount of the 2001 NOL carryback. Therefore, only $2,200 was available to carry to 2002 and later years, as shown
on his 2001 Form 1045,
Schedule B, line 9. John enters the $2,200 on line 3 of the worksheet, and $5,200 on line 4. He then subtracts the $5,200
from the $8,000 on line 1
and enters the result, $2,800, on line 5 of the worksheet. He enters a negative $2,800 on Schedule J, line 5. He combines
that amount with the $6,000
on Schedule J, line 6, and enters $3,200 on Schedule J, line 7.
2000 Taxable Income Worksheet—Line 5 Keep for your Records
Complete this worksheet if you figured your tax for both 2001 and 2002 without using Schedule J
and your 2000 taxable income was zero or less. See the instructions above before completing this worksheet.
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Figure the taxable income from your 2000 tax return (or as previously adjusted) without limiting it to
zero. If you had an NOL for 2000, do not include any NOL carryovers or carrybacks to 2000. Enter the result as a positive amount
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If there is a loss on your 2000 Schedule D, line 18, add that loss (as a positive amount) and your 2000 capital loss carryover
to 2001.
Subtract from that sum the amount of the loss on your 2000 Schedule D, line 17, and enter the result
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If you had an NOL for 2000, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the
NOL
carryovers and carrybacks to 2000 that were not used in 2000 and were carried to years after 2000
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Add lines 2 and 3 |
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Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 5 |
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If line 7 is zero, enter zero on line 8. Otherwise, figure the tax on the amount on line 7 using:
- The 2000 Tax Rate Schedules below,
- The 2000 Capital Gain Tax Worksheet below, or
- The Schedule D you filed for 2000 (but use the 2000 Tax Rate Schedules below instead of the 2000 Tax Table when figuring the
tax on Schedule
D, lines 33 and 53).
2000 Tax Rate Schedules—Line 8
Schedule X—Use if your 2000 filing status was
Single |
Schedule Y-2—Use if your 2000 filing status was
Married filing separately |
If Schedule J, line 7, is:
Over— |
But not over— |
Enter on
Schedule J,
line 8
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of the amount over— |
If Schedule J, line 7, is:
Over— |
But not over— |
Enter on
Schedule J,
line 8
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of the amount over— |
$0
26,250
63,550
132,600
288,350
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$26,250
63,550
132,600
288,350
.............
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$3,937.50 + 14,381.50 + 35,787.00 + 91,857.00 + |
15% 28% 31% 36% 39.6% |
$0 26,250 63,550 132,600 288,350 |
$0
21,925
52,975
80,725
144,175
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$21,925
52,975
80,725
144,175
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$3,288.75 + 11,982.75 + 20,585.25 + 43,427.25 + |
15% 28% 31% 36% 39.6% |
$0 21,925 52,975 80,725 144,175 |
Schedule Y-1—Use if your 2000 filing status was
Married
filing jointly or Qualifying widow(er) |
Schedule Z—Use if your 2000 filing status was Head of
household |
If Schedule J, line 7, is:
Over— |
But not over— |
Enter on
Schedule J,
line 8
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of the amount over— |
If Schedule J, line 7, is:
Over— |
But not over— |
Enter on
Schedule J,
line 8
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of the amount over— |
$0
43,850
105,950
161,450
288,350
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$43,850
105,950
161,450
288,350
.............
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...........
$6,577.50 + 23,965.50 + 41,170.50 + 86,854.50 +
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15% 28% 31% 36% 39.6% |
$0 43,850
105,950
161,450
288,350 |
$0
35,150
90,800
147,050
288,350
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$35,150
90,800
147,050
288,350
.............
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$5,272.50 + 20,854.50 + 38,292.00 + 89,160.00 + |
15% 28% 31% 36% 39.6% |
$0 35,150 90,800 147,050 288,350 |
2000 Capital Gain Tax Worksheet—Line 8
Use this worksheet only if you entered capital gain distributions directly on line 13
of your 2000 Form 1040 (or line 10 of your 2000 Form 1040A) and checked the box on that line and elected farm income included on Schedule
J, lines 5 and 6, does not include any net capital gain.
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Amount from Schedule J, line 7 |
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Amount from your 2000 Form 1040, line 13 (or Form 1040A, line 10) |
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Subtract line 2 from line 1. If zero or less, enter -0- |
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Figure the tax on the amount on line 3. Use the 2000 Tax Rate Schedules above |
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Enter the smaller of:
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- The amount on line 1 above or
- $26,250 if single for 2000; $43,850 if married filing
jointly or qualifying widow(er); $21,925 if married
filing separately; or $35,150 if head of household.
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Enter the amount from line 3 |
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Subtract line 6 from line 5. If zero or less, enter -0- and go to line 9 |
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Multiply line 7 by 10% (.10) |
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Enter the smaller of line 1 or line 2
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Enter the amount from line 7 |
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Subtract line 10 from line 9. If zero or less, enter -0- and go to line 13 |
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Multiply line 11 by 20% (.20) |
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Add lines 4, 8, and 12 |
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Figure the tax on the amount on line 1. Use the 2000 Tax Rate Schedules above |
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Tax. Enter the smaller of line 13 or line 14 here and on Schedule J, line 8.
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If you used Schedule J to figure your tax for 2002 (that is, you entered the amount from line 22 of that Schedule J on Form
1040, line 42, or on
Form 1040X), enter on line 9 the amount from line 15 of your 2002 Schedule J. If you used Schedule J to figure your tax for
2001 but not 2002, enter
on line 9 the amount from line 3 of your 2001 Schedule J.
If you figured your tax for both 2001 and 2002 without using Schedule J, enter on line 9 the taxable income from your 2001
tax return (or as
previously adjusted by the IRS, an amended return, etc.). But if that amount is zero or less, complete the worksheet below
to figure the amount to
enter on line 9.
If you filed your 2001 tax return using TeleFile, enter the taxable income from your TeleFile Tax Record. If you did not file
a tax return for
2001, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to
keep all your records for
2001 until at least 3 years after April 15, 2004 (or the date you file your 2003 tax return, if later), even if you did not
file a tax return for
2001.
Instructions for 2001 Taxable Income Worksheet
Line 2.
Any net capital loss deduction on your 2001 Schedule D, line 18, is not allowed for farm income averaging purposes
to the extent it did not reduce
your capital loss carryover to 2002. This could happen if the taxable income before subtracting exemptions shown on your 2001
Form 1040, line 37 (or
as previously adjusted), was less than zero. Enter the amount by which your 2001 capital loss carryover to 2002 (the sum of
your short- and long-term
capital loss carryovers) exceeds the excess of the loss on your 2001 Schedule D, line 17, over the loss on your 2001 Schedule
D, line 18. If you had
any NOL carrybacks to 2001, be sure you refigured your 2001 capital loss carryover to 2002.
Line 3.
If you had an NOL for 2001, enter the amount of that NOL as figured on line 27 of the 2001 Form 1045, Schedule A,
you filed with Form 1045 or Form
1040X. If you did not have an NOL for 2001, enter the portion, if any, of the NOL carryovers and carrybacks to 2001 that were
not used in 2001 and
were carried to years after 2001.
Example.
John Farmington did not use farm income averaging for 2000, 2001, nor 2002. The taxable income before subtracting
exemptions on his 2001 Form 1040,
line 37, is a negative $30,100. A deduction for exemptions of $2,900 is shown on line 38, and line 39, taxable income, is
limited to zero. John
subtracts from the $30,100 loss the $2,900 deduction for exemptions. The result is a negative $33,000, John's 2001 taxable
income, which he enters as
a positive amount on line 1 of the 2001 worksheet.
John had a $3,000 net capital loss deduction on Schedule D, line 18 (which was also entered on Form 1040, line 13),
and a $7,000 loss on Schedule
D, line 17 (as adjusted). He also had a $7,000 capital loss carryover to 2002. John adds the $3,000 from Schedule D, line
18, and the $7,000
carryover. He subtracts from the result the $7,000 loss on his Schedule D, line 17, and enters $3,000 on line 2 of the worksheet.
John enters $22,550 on line 3 of the worksheet, the 2001 NOL from his 2001 Form 1045, Schedule A, line 27. Of the
$33,000 negative taxable income,
the $2,900 deduction for exemptions, the $3,000 capital loss deduction, and his $4,550 standard deduction were not allowed
in figuring the NOL. John
had a $22,550 loss on his 2001 Schedule F, the only other item on his 2001 tax return.
John enters $25,550 on line 4 and $7,450 on line 5. He enters $7,450 as a negative amount on Schedule J, line 9. He
enters $6,000 on Schedule J,
line 10, and a negative $1,450 on Schedule J, line 11. If he uses Schedule J to figure his tax for 2004, he will enter the
negative $1,450 amount on
his 2004 Schedule J as his 2001 taxable income for farm income averaging purposes.
2001 Taxable Income Worksheet—Line 9 Keep for your Records
Complete this worksheet if you did not use Schedule J to figure your tax for 2002 and your 2001
taxable income was zero or less. See the instructions above before completing this worksheet.
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1. |
Figure the taxable income from your 2001 tax return (or as previously adjusted) without limiting it to
zero. If you had an NOL for 2001, do not include any NOL carryovers or carrybacks to 2001. Enter the result as a positive amount
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1. |
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2. |
If there is a loss on your 2001 Schedule D, line 18, add that loss (as a positive amount) and your 2001 capital loss carryover
to 2002.
Subtract from that sum the amount of the loss on your 2001 Schedule D, line 17, and enter the result
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3. |
If you had an NOL for 2001, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the
NOL
carryovers and carrybacks to 2001 that were not used in 2001 and were carried to years after 2001
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4. |
Add lines 2 and 3 |
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Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 9 |
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If line 11 is zero or less, enter zero on line 12. Otherwise, figure the tax on the amount on line 11 using:
- The 2001 Tax Rate Schedules below,
- The 2001 Capital Gain Tax Worksheet below, or
- The Schedule D you filed for 2001 (but use the 2001 Tax Rate Schedules below instead of the 2001 Tax Table when figuring the
tax on Schedule
D, lines 25 and 39, or on lines 15 and 36 of the Schedule D Tax Worksheet).
Exception.
You must use the 2001 Tax Computation Worksheet for Certain Dependents and Nonresident Alien Individuals
on page J-6 if you, or your spouse if filing jointly, did not receive (before
offset) an advance payment of your 2001 taxes and either of the following apply.
2001 Tax Rate Schedules—Line 12
Schedule X—Use if your 2001 filing status was
Single |
Schedule Y-2—Use if your 2001 filing status was
Married filing separately |
If Schedule J, line 11, is:
Over— |
But not over— |
Enter on
Schedule J,
line 12
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of the amount over— |
If Schedule J, line 11, is:
Over— |
But not over— |
Enter on
Schedule J,
line 12
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of the amount over— |
$0
27,050
65,550
136,750
297,350
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$27,050
65,550
136,750
297,350
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$4,057.50 + 14,645.00 + 36,361.00 + 93,374.00 + |
15% 27.5% 30.5% 35.5% 39.1% |
$0 27,050 65,550 136,750 297,350 |
$0
22,600
54,625
83,250
148,675
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$22,600
54,625
83,250
148,675
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$3,390.00 + 12,196.88 + 20,927.50 + 44,153.38 + |
15% 27.5% 30.5% 35.5% 39.1% |
$0 22,600 54,625 83,250 148,675 |
Schedule Y-1—Use if your 2001 filing status was
Married
filing jointly or Qualifying widow(er) |
Schedule Z—Use if your 2001 filing status was Head of
household |
If Schedule J, line 11, is:
Over— |
But not over— |
Enter on
Schedule J,
line 12
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of the amount over— |
If Schedule J, line 11, is:
Over— |
But not over— |
Enter on
Schedule J,
line 12
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of the amount over— |
$0
45,200
109,250
166,500
297,350
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$45,200
109,250
166,500
297,350
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$6,780.00 + 24,393.75 + 41,855.00 + 88,306.75 +
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15% 27.5% 30.5% 35.5% 39.1% |
$0 45,200
109,250
166,500
297,350 |
$0
36,250
93,650
151,650
297,350
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$36,250
93,650
151,650
297,350
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$5,437.50 + 21,222.50 + 38,912.50 + 90,636.00 + |
15% 27.5% 30.5% 35.5% 39.1% |
$0 36,250 93,650 151,650 297,350 |
2001 Capital Gain Tax Worksheet—Line 12
Use this worksheet only if you entered capital gain distributions directly on line 13
of your 2001 Form 1040 (or line 10 of your 2001 Form 1040A) and checked the box on that line and elected farm income included on Schedule
J, lines 9 and 10, does not include any net capital gain.
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Amount from Schedule J, line 11 |
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Amount from your 2001 Form 1040, line 13 (or Form 1040A, line 10) |
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Subtract line 2 from line 1. If zero or less, enter -0- |
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Figure the tax on the amount on line 3. Use the 2001 Tax Rate Schedules above |
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Enter the smaller of:
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- The amount on line 1 above or
- $27,050 if single for 2001; $45,200 if married
filing jointly or qualifying widow(er); $22,600 if
married filing separately; or $36,250 if head of
household.
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Enter the amount from line 3 |
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Subtract line 6 from line 5. If zero or less, enter -0- and go to line 9 |
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Multiply line 7 by 10% (.10) |
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Enter the smaller of line 1 or line 2
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Enter the amount from line 7 |
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Subtract line 10 from line 9. If zero or less, enter -0- and go to line 13 |
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Multiply line 11 by 20% (.20) |
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Add lines 4, 8, and 12 |
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Figure the tax on the amount on line 1. Use the 2001 Tax Rate Schedules above |
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Tax. Enter the smaller of line 13 or line 14 here and on Schedule J, line
12.
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2001 Tax Computation Worksheet for Certain Dependents and Nonresident Alien Individuals — Line 12 Keep for your Records
Use this worksheet only if you, or your spouse if filing jointly, did not
receive (before offset) an advance payment of your 2001 taxes and (a) you, or your spouse if filing jointly, could be claimed as a
dependent on someone else's 2001 tax return or (b) you filed Form 1040NR for 2001.
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Special Rules. If:
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The 2001 Capital Gain Tax Worksheet on page J-5 applies, use this worksheet
to figure the tax on lines 4 and 14 of the 2001 Capital Gain Tax Worksheet.
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Part IV of the 2001 Schedule D applies, use this
worksheet to figure the tax on lines 25 and 39 of Part IV. If the 2001 Schedule D Tax Worksheet applies, use this worksheet to figure the
tax on lines 15 and 36 of the Schedule D Tax Worksheet.
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Figure the tax on the amount on Schedule J, line 11 (or the applicable line of the worksheet or
schedule listed above). Use the 2001 Tax Rate Schedules on page J-5
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Is the amount on line 1 more than the amount shown below for your 2001 filing status? |
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Single or married filing separately—$900 |
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Married filing jointly or qualifying widow(er)—$1,800 |
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Head of household—$1,500 |
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Yes. Enter: $300 if single or married filing separately for 2001; $500 if
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head of household; $600 if married filing jointly or qualifying widow(er). |
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No. Divide the amount on line 1 by 3.0.
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Subtract line 2 from line 1. Enter the result here and on Schedule J, line 12 (or the applicable line
of the worksheet or schedule listed above)
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If you used Schedule J to figure your tax for 2002 (that is, you entered the amount from line 22 of that Schedule J on Form
1040, line 42, or on
Form 1040X), enter on line 13 the amount from line 3 of that Schedule J.
If you did not use Schedule J to figure your tax for 2002, enter on line 13 the taxable income from your 2002 tax return (or
as previously adjusted
by the IRS, an amended return, etc.). But if that amount is zero or less, complete the worksheet below to figure the amount
to enter on line 13.
If you filed your 2002 tax return using TeleFile, enter the taxable income from your TeleFile Tax Record. If you did not file
a tax return for
2002, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to
keep all your records for
2002 until at least 3 years after April 15, 2004 (or the date you file your 2003 tax return, if later), even if you did not
file a tax return for
2002.
Instructions for 2002 Taxable Income Worksheet
Line 2.
Any net capital loss deduction on your 2002 Schedule D, line 18, is not allowed for farm income averaging purposes
to the extent it did not reduce
your capital loss carryover to 2003. This could happen if the taxable income before subtracting exemptions shown on your 2002
Form 1040, line 39 (or
as previously adjusted), was less than zero. Enter the amount by which your 2002 capital loss carryover to 2003 (the sum of
your short- and long-term
capital loss carryovers) exceeds the excess of the loss on your 2002 Schedule D, line 17, over the loss on your 2002 Schedule
D, line 18.
Line 3.
If you had an NOL for 2002, enter the amount of that NOL as figured on line 27 of the 2002 Form 1045, Schedule A,
you filed with Form 1045 or Form
1040X. If you did not have an NOL for 2002, enter the portion, if any, of the NOL carryovers and carrybacks to 2002 that were
not used in 2002 and
were carried to years after 2002.
Example.
John Farmington did not use farm income averaging for 2000, 2001, nor 2002. The taxable income before subtracting
exemptions on his 2002 Form 1040,
line 39, is a negative $1,000. This amount includes an NOL deduction (NOLD) on his 2002 Form 1040, line 21, of $2,200. The
$2,200 is the portion of
the 2001 NOL that was remaining from 2000 to be carried to 2002. See the examples on pages J-2 and J-4. A deduction for exemptions
of $3,000 is shown
on Form 1040, line 40, and line 41, taxable income, is limited to zero. John does not have an NOL for 2002. John subtracts
from the $1,000 negative
amount on Form 1040, line 39, the $3,000 deduction for exemptions. The result is a negative $4,000, John's 2002 taxable income,
which he enters as a
positive amount on line 1 of the 2002 worksheet.
John had a $3,000 net capital loss deduction on Schedule D, line 18 (which was also entered on Form 1040, line 13),
a $7,000 loss on Schedule D,
line 17, and a $5,000 capital loss carryover to 2003 (his 2002 capital loss carryover to 2003 was $5,000, not $4,000, because
the amount on his Form
1040, line 39, was a negative $1,000). John adds the $3,000 from Schedule D, line 18, and the $5,000 carryover. He reduces
the result by the $7,000
loss on his Schedule D, line 17, and enters $1,000 on line 2 of the worksheet.
John enters zero on line 3 of the worksheet because he does not have an NOL for 2002 and did not have an NOL carryover
from 2002 available to carry
to 2003 and later years. The NOLD for 2002 of $2,200 was reduced to zero because it did not exceed his modified taxable income
of $4,200. Modified
taxable income is figured by adding back the $3,000 net capital loss deduction and the $3,000 of exemptions to negative taxable
income (figured
without regard to the NOLD) of $1,800. John enters $1,000 on line 4 and $3,000 on line 5. He enters $3,000 as a negative amount
on Schedule J, line
13. He enters $6,000 on Schedule J, line 14, and $3,000 on Schedule J, line 15. If he uses Schedule J to figure his tax for
2004, he will enter $3,000
on his 2004 Schedule J as his 2002 taxable income for farm income averaging purposes.
2002 Taxable Income Worksheet—Line 13 Keep for your Records
Complete this worksheet if your 2002 taxable income is zero or less. See the instructions above
before completing this worksheet.
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1. |
Figure the taxable income from your 2002 tax return (or as previously adjusted) without limiting it to
zero. If you had an NOL for 2002, do not include any NOL carryovers or carrybacks to 2002. Enter the result as a positive amount
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1. |
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2. |
If there is a loss on your 2002 Schedule D, line 18, add that loss (as a positive amount) and your 2002 capital loss carryover
to 2003.
Subtract from that sum the amount of the loss on your 2002 Schedule D, line 17, and enter the result
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2. |
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3. |
If you had an NOL for 2002, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the
NOL
carryovers and carrybacks to 2002 that were not used in 2002 and were carried to years after 2002
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4. |
Add lines 2 and 3 |
4. |
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Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 13 |
5. |
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If line 15 is zero or less, enter zero on line 16. Otherwise, figure the tax on the amount on line 15 using:
- The 2002 Tax Rate Schedules below,
- The 2002 Capital Gain Tax Worksheet below, or
- The Schedule D you filed for 2002 (but use the 2002 Tax Rate Schedules below instead of the 2002 Tax Table when figuring the
tax on Schedule
D, lines 25 and 39, or on lines 15 and 36 of the Schedule D Tax Worksheet).
2002 Tax Rate Schedules—Line 16
Schedule X—Use if your 2002 filing status was
Single |
Schedule Y-2—Use if your 2002 filing status was
Married filing separately |
If Schedule J, line 15, is:
Over— |
But not over— |
Enter on
Schedule J,
line 16
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of the amount over— |
If Schedule J, line 15, is:
Over— |
But not over— |
Enter on
Schedule J,
line 16
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of the amount over— |
$0
6,000
27,950
67,700
141,250
307,050
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$6,000 27,950
67,700
141,250
307,050
.............
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...........
$600.00 +
3,892.50 +
14,625.00 +
36,690.00 +
94,720.00 +
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10% 15%
27% 30% 35% 38.6% |
$0 6,000 27,950 67,700 141,250 307,050 |
$0
6,000
23,350
56,425
85,975
153,525
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$6,000 23,350
56,425
85,975
153,525
.............
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...........
$600.00 + 3,202.50 + 12,132.75 + 20,997.75 + 44,640.25 + |
10%
15% 27% 30% 35% 38.6% |
$0
6,000 23,350 56,425 85,975 153,525 |
Schedule Y-1—Use if your 2002 filing status was
Married
filing jointly or Qualifying widow(er) |
Schedule Z—Use if your 2002 filing status was Head of
household |
If Schedule J, line 15, is:
Over— |
But not over— |
Enter on
Schedule J,
line 16
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of the amount over— |
If Schedule J, line 15, is:
Over— |
But not over— |
Enter on
Schedule J,
line 16
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of the amount over— |
$0
12,000
46,700
112,850
171,950
307,050
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$12,000 46,700
112,850
171,950
307,050
.............
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...........
$1,200.00 +
6,405.00 +
24,265.50 +
41,995.50 +
89,280.50 +
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10%
15%
27% 30% 35% 38.6% |
$0
12,00046,700
112,850
171,950
307,050 |
$0
10,000
37,450
96,700
156,600
307,050
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$10,000 37,450
96,700
156,600
307,050
.............
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...........
$1,000.00 + 5,117.50 + 21,115.00 + 39,085.00 + 91,742.50 + |
10%
15% 27% 30% 35% 38.6% |
$0
10,00037,450 96,700 156,600
307,050 |
2002 Capital Gain Tax Worksheet—Line 16
Use this worksheet only if you entered capital gain distributions directly on line 13
of your 2002 Form 1040 (or line 10 of your 2002 Form 1040A) and checked the box on that line and elected farm income on Schedule J, line 2,
does not include any net capital gain.
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Amount from Schedule J, line 15 |
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1. |
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2. |
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Amount from your 2002 Form 1040, line 13 (or Form 1040A, line 10) |
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2. |
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Subtract line 2 from line 1. If zero or less, enter -0- |
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3. |
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Figure the tax on the amount on line 3. Use the 2002 Tax Rate Schedules above |
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5. |
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Enter the smaller of:
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- The amount on line 1 above or
- $27,950 if single for 2002; $46,700 if married
filing jointly or qualifying widow(er); $23,350 if
married filing separately; or $37,450 if head of
household.
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5. |
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Enter the amount from line 3 |
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Subtract line 6 from line 5. If zero or less, enter -0- and go to line 9 |
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Multiply line 7 by 10% (.10) |
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Enter the smaller of line 1 or line 2
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Enter the amount from line 7 |
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Subtract line 10 from line 9. If zero or less, enter -0- and go to line 13 |
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12. |
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Multiply line 11 by 20% (.20) |
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13. |
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Add lines 4, 8, and 12 |
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Figure the tax on the amount on line 1. Use the 2002 Tax Rate Schedules above |
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15. |
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Tax. Enter the smaller of line 13 or line 14 here and on Schedule J, line
16.
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15. |
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If you filed your 2000, 2001, or 2002 tax return using TeleFile, enter your tax from your TeleFile Tax Record. If you amended
your return or the
IRS made changes to it, enter the corrected amount.
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