Symbols

10% tax for early withdrawal from IRA or retirement plan (see Early withdrawal from deferred interest account, subheading: Tax on)

10-year tax option, 10-Year Tax Option

2004 Reminder:

Foreign income, Reminder

401(k) plans:

Tax treatment of contributions, Elective deferrals.

403(b) plans:

Rollovers, Rollovers, Rollover From Employer's Plan Into an IRA

457 plans (see Section 457 deferred compensation plans)

529 plans (see Qualified tuition programs)

A

Abandonment of home, Abandonment.

Abortion:

Deductibility as medical expense,

Abroad, citizens traveling or working (see Citizens outside U.S.) (see Foreign employment)

Academic period (see name of benefit)

Accelerated Cost Recovery System (ACRS):

Rental property, Depreciation Methods

Rental property:

Alternative minimum tax, Alternative minimum tax.

Accelerated death benefits, Accelerated Death Benefits, Accelerated Death Benefits, Exclusion for terminal illness.

Accident insurance, Accident or Health Plan

Accident insurance:

Cafeteria plans, Cafeteria plans.

Long-term care, Long-term care coverage., Long-Term Care Insurance Contracts

Accidental death benefits, Accidental death benefits.

Accidents, car, Deductible losses.

Accidents, car:

Value determination, Car value.

Willful negligence or intentional act as cause, Nondeductible losses.

Accountable plans for employee reimbursements, Accountable Plans, Related to employer.

Accountants:

Basis to include fees of, Cost Basis

CPA review courses, Bar or CPA Review Course

Preparers of tax returns, Paid Preparer

Accounting methods, Accounting Methods

Accrual method (see Accrual method taxpayers)

Cash method (see Cash method taxpayers)

Accounting methods:

Change of:

Depreciation, to deduct unclaimed amount, Changing your accounting method to deduct unclaimed depreciation.

Accounting periods, Accounting Periods

Accounting periods:

Calendar year, When Do I Have To File?, Accounting Periods, Accounting period.

Change in, standard deduction not allowed, Persons not eligible for the standard deduction.

Fiscal year, Accounting Periods, Fiscal year taxpayers., Fiscal Years

Fringe benefits, Accounting period.

Accrual method taxpayers, Accrual method.

Accrual method taxpayers:

Deceased taxpayer, Accrual method.

Taxes paid during tax year, deduction of, The tax must be paid during your tax year.

Accumulation distribution of trusts:

Tax on, Other taxes.

Accuracy-related penalties, Accuracy-related penalty.

ACRS (Accelerated Cost Recovery System):

Rental property, Depreciation Methods

Rental property:

Alternative minimum tax, Alternative minimum tax.

Activities not for profit, Activity not for profit.

Address:

Change of, Change of Address

Correcting label, Correcting the label.

Foreign, Foreign address.

Label, Peel-Off Address Label

No label received, No label.

P.O. box, P.O. box.

Service Centers, Mailing your return.

Adjusted basis, Adjusted Basis, Postponed gain from sale of home.

Home sale (see Sale of home)

Adjusted basis:

Clean-fuel vehicle and refueling property, Deduction for clean-fuel vehicle and refueling property.

Decreases to basis, Decreases to Basis

Depreciation, Depreciation and section 179 deduction.

Easements, Easements.

Electric vehicle credit, Credit for qualified electric vehicles.

Energy conservation subsidies exclusion, Exclusion of subsidies for energy conservation measures.

Examples (Table 14-1),

Gifts, Property Received as a Gift

Improvements, Improvements.

Increases to basis, Increases to Basis

Local assessments, Assessments for local improvements.

Sales of property, Adjusted basis.

Section 179 deduction, Depreciation and section 179 deduction.

Adjusted gross income (AGI)

Modified (see Modified adjusted gross income (MAGI))

Adjusted gross income (AGI):, Standard Deduction, 21. Education-Related Adjustments

(see also Deductions)

Business expenses, limit on deduction, 3. Limit on total itemized deductions.

Charitable contribution deduction limit, 50% Limit, 30% Limit

Form 1040, 1040A or 1040EZ, Adjusted gross income (AGI).

Itemized deduction limit, Reminders, Reminder

Medical and dental expenses and limit of deduction, How Much of the Expenses Can You Deduct?, What Tax Form Do You Use?

Retirement savings contribution credit, Special Rules, Adjusted gross income (AGI).

Adjustments, Adjustments and tax preference items.

Administrators, estate (see Executors and administrators)

Adopted child:

Earned Income Credit, Adopted child.

Adoption:

ATIN, Adoption taxpayer identification number (ATIN)., Adoption taxpayer identification number (ATIN).

Child tax credit, Adopted child.

(see also Child tax credit)

Credit Employer's assistance program, What's New for 2004, Child with special needs.

Credits, You can use Form 1040A if all of the following apply., Personal Expenses, What's New, Adoption Credit

Credits:

Claiming, When to claim the credit.

Married filing separately, Special Rules

Employer assistance, Adoption Assistance

Exemption for child, Personal Expenses

Expenses not deductible:

Foster care prior to, no charitable deduction, Foster parents.

No charitable deduction for, Personal Expenses

Foreign child, Foreign child.

Medical and dental expenses of adopted child, Adopted child.

Member of household test, Adoption.

Taxpayer identification number, Adoption taxpayer identification number (ATIN)., Taxpayer identification numbers for aliens.

Taxpayer identification numbers (TINs), Adoption taxpayer identification number (ATIN).

Advance earned income credit, Reminders, You can use Form 1040EZ if all of the following apply., Advance Earned Income Credit

Advance earned income credit:

Filing requirements (Table 1-3),

Age

Children's investments (see Children, subheading: Investment income of child under age 14)

Age:

Form 1040EZ, taxpayer under 65 may use, You can use Form 1040EZ if all of the following apply.

Gross income and filing requirements (Table 1-1),

IRAs:

Contribution cutoff at age 70½, Age 70½ rule.

Distribution prior to age 59½, Age 59½ rule.

Distribution required at age 70½, IRA owners., Excess Accumulations (Insufficient Distributions)

Pension distributions required at age 70½, Age 70½.

Retirement plan recipients over age 75, Who must use the General Rule.

Roth IRAs, Is there an age limit for contributions?, Must you withdraw or use Roth IRA assets?

Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older)

Standard deduction for age 65 or older:

Chart for filing status (Table 22-2), Electing to itemize for state tax or other purposes.

Agents, Losses on sales or trades of property.

(see also Fiduciaries)

Agents:

Income paid to, Payment to an agent.

Signing return, When someone can sign for you.

AGI (see Adjusted gross income (AGI))

Agricultural workers (see Farmworkers)

Agriculture (see Farming)

Aircraft:

Charitable gift of, deduction for fair market value, Cars, boats, and aircraft.

Airline club dues:

Not entertainment expenses, Club dues and membership fees.

Airport transportation:

Business-related travel expense, Table 28-1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes.

Alaska Permanent Fund dividends, Alaska Permanent Fund dividend.

Alaska Permanent Fund dividends:

Child's dividends, Child's Alaska Permanent Fund dividends.

Income from, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply., Alaska Permanent Fund dividends.

Investment income not to include, Investment income.

Alaska:

Standard meal allowance, Standard meal allowance for areas outside the continental United States.

Alcohol rehabilitation centers:

Deductibility of medical expense,

Alcoholic beverages:

IRA prohibited transactions in, Collectibles.

Aliens, Individual taxpayer identification number (ITIN) for aliens.

Dual-status (see Dual-status taxpayers)

Nonresident (see Nonresident aliens)

Resident (see Resident aliens)

Aliens:

Filing required, Aliens

Alimony, 20. Alimony, Deducting the recapture.

Alimony:

Death of recipient spouse, Liability for payments after death of recipient spouse.

Decrease in amount and recapture rule, Recapture Rule

Deduction, How To Deduct Alimony Paid

Deduction:

Difference from one year to another of more than $15,000, Recapture Rule

Definition of, Introduction

Form 1040 to be used:

Deduction for amount paid, How To Deduct Alimony Paid

Income received, reporting of, How To Report Alimony Received

Recapture, Including the recapture in income., Deducting the recapture.

Instruments executed after 1984, Instruments Executed After 1984

Instruments executed after 1984:

Alimony requirements (Table 20-1),

Instruments executed before 1985, Exception for instruments executed before 1985.

Joint return of spouses not allowed, Alimony requirements.

Jointly owned home, Payments for jointly-owned home.

Jointly owned home:

Separate residences in, Spouses cannot be members of the same household.

Taxes and insurance premiums, Taxes and insurance.

Life insurance premiums, Life insurance premiums.

Mortgage payments, Mortgage payments.

Mortgage payments:

Interest deduction, Divorced or separated individuals.

Payments designated as not alimony, Payments designated as not alimony.

Payments must be in cash, Payments must be in cash.

Payments not included as, Payments not alimony.

Payments to third party, Payments to a third party., Other payments to a third party., Payments to a third party.

Penalty for failure to provide social security number of recipient, How To Deduct Alimony Paid, How To Report Alimony Received

Recapture rule, Recapture Rule

Recipient reporting of, How To Report Alimony Received

Reporting of income, Introduction, Alimony., How To Report Alimony Received

Spouse defined for purposes of, Spouse or former spouse.

Spouses cannot be members of same household, Spouses cannot be members of the same household.

Substitute payments, Substitute payments.

Taxes and insurance paid on home owned as tenants in common, Taxes and insurance.

Termination of and recapture rule, Recapture Rule

Alternative filing methods

Electronic (see E-file)

Alternative minimum tax (AMT), Alternative Minimum Tax

Alternative minimum tax (AMT):

Accelerated depreciation and, Alternative minimum tax.

Child's tax, figuring of, Alternative minimum tax.

Credit for prior year tax, Credit for Prior Year Minimum Tax, How to claim the credit.

Exempt-interest dividends, Alternative minimum tax treatment.

Filing requirements (Table 1-3),

Incentive stock option, You can use Form 1040A if all of the following apply.

Payments, You can use Form 1040A if all of the following apply.

Amateur sports organizations:

Charitable contributions to, Types of Qualified Organizations

Ambulance service personnel:

Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty

Amended returns, Amended Returns and Claims for Refund, Form 1040X., Filing Form 1040X.

(see also Form 1040X)

Amended returns:

Itemized deduction, change to standard deduction, Changing your mind.

Standard deduction, change to itemized deductions, Changing your mind.

American citizens abroad (see Citizens outside U.S.)

Employment (see Foreign employment)

American Indians (see Indians)

American Samoa:

Income from, Individuals With Income From U.S. Possessions

Amortization:

Bond premiums, treatment of, Amortization of bond premium.

AMT (see Alternative minimum tax (AMT))

Annuities:, Rollovers

(see also Rollovers)

Cost computation, Cost (Investment in the Contract)

Credit for elderly or disabled persons, Credit for the elderly or the disabled.

Decedent's unrecovered investment in, Form W-2.

Early distributions from,

Early distributions from:

Deferred annuity contracts, 5% rate on certain early distributions from deferred annuity contracts., Additional exceptions for nonqualified annuity contracts.

Estimated tax, Withholding and estimated tax.

Exclusion limit, Exclusion limit.

Form 1099-R, The 1099 Series

General Rule:

Annuity starting before November 19, 1996, Annuity starting before November 19, 1996.

Nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule.

Purchased annuities, Purchased Annuities

Survivor's annuity, Survivors

Guaranteed payments, Guaranteed payments.

IRAs as, Kinds of traditional IRAs.

Joint return, Joint return.

Joint return:

Worksheet,

Loans from plan, Loans.

Lump-sum distributions, Lump-Sum Distributions

Multiple plan benefits, More than one program., More than one annuity.

Partly taxable payments, Partly taxable payments.

Purchased annuities, Purchased Annuities

Reporting of, How To Report

Retirement annuities, 11. Retirement Plans, Pensions, and Annuities

(see also Retirement plans)

Rollovers, Rollovers

Sale of, Sale of Annuity

Sale of:

Gain as ordinary income, Sale of annuity.

Simplified method to calculate tax-free part of annuity payment, Simplified Method

Simplified method to calculate tax-free part of annuity payment:

Survivor's annuity, Survivors

Worksheet for computation, How to use the Simplified Method.

Survivor annuities, Survivors

Trade of insurance policies and annuities, Insurance policies and annuities.

Unrecovered investment, Unrecovered Investment in Annuity

Withholding, Form W-2., Pensions and Annuities, Withholding and estimated tax.

Annulled marriages:

Filing status, Annulled marriages.

Anthrax incidents (see Terrorist attacks)

Antiques (see Collectibles)

Appliances:

Deterioration and damage, not casualty loss, Progressive deterioration.

Appraisal fees, Appraisal Fees

Appraisal fees:

Donated property, Appraisal Fees

Not deductible as interest, Amounts charged for services.

Real estate transactions, when required by lender, Settlement costs.

Appraisals:

Casualty or theft losses, Appraisal., Costs of photographs and appraisals.

Archer MSAs, Archer MSA, Archer MSA., Medical savings accounts (MSAs).

Archer MSAs:

Contributions, Archer MSA contributions.

Filing requirements (Table 1-3),

Medical expenses paid for decedent from, Decedent

Not deductible as medical expense,

Armed forces, Types of Qualified Organizations,

(see also Veterans' organizations)

Armed forces:, Veterans' benefits., Armed Forces reservists.

(see also Reservists)

(see also Veterans' benefits)

Combat zone:

Extension to file return, Individuals Serving in Combat Zone

Signing return for spouse, Spouse in combat zone.

Dependency allotments, Armed Forces dependency allotments.

Disability pay, Disability.

Disability pensions, Military and Government Disability Pensions

Military, Military uniforms.

Military quarters allotments, Tax-exempt military quarters allowances.

Moving expenses deduction, Members of the Armed Forces

Naval officers on permanent duty aboard ship, Members of the Armed Forces.

Permanent duty overseas, Members of the Armed Forces.

Real estate taxes when receiving housing allowance, Minister's and military personnel housing allowances., Ministers' and military housing allowance.

Rehabilitative program payments, Rehabilitative program payments.

Reserves, Armed Forces reservists traveling more than 100 miles from home., Armed Forces reservists., Armed Forces Reservists Traveling More Than 100 Miles From Home

Retirees' pay:

Taxable income, Military retirement pay.

Withholding, Military retirees.

Tuition payments and allowances under GI Bill, Tuition payments and allowances under the GI Bill.

Uniforms, Military uniforms.

Wages, Military

Art works:

As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc.

Capital gains or losses from sale or trade of, Investment interest deducted.

Artists, performing (see Performing artists)

Assessments, local (see Local assessments)

Assistance, tax (see Tax help)

Assumption of mortgage, Assumption of mortgage.

Assumption of mortgage:

Fees not included in basis, Settlement costs.

At-risk rules:

Rental property, Limits on Rental Losses, At-Risk Rules

ATAA workers, health coverage tax credit, ATAA workers.

Athletic events:

Charitable contributions, amount deductible, Athletic events.

ATIN (Adoption taxpayer identification number), Adoption taxpayer identification number (ATIN).

Attachment of wages, Garnisheed wages.

Attachments to return, Attachments

Attorneys' fees, Legal Expenses, Personal Legal Expenses

Attorneys' fees:

Basis to include, Cost Basis

Social security and railroad retirement benefits, deductions for, Legal expenses.

Title to property, for preparation, filing, etc., Settlement costs.

Attorneys:

Bar review courses, Bar or CPA Review Course

Audits:

Travel expense records, If your return is examined.

Auto insurance:

Medical expenses covered by, not deductible,

Automatic extension of time to file, Automatic Extension, When to file.

Automatic extension of time to file:

Form 4868, E-file options.

Automatic investment services:

Holding period, determination of, Automatic investment service.

Automobiles (see Cars)

Awards (see Prizes and awards)

Away-from-home travel (see Travel and transportation expenses)

B

Baby-sitting, Baby-sitting.

(see also Domestic help)

Back pay, award for, Back pay awards.

Back pay, award for:

Emotional distress damages under Title VII of Civil Rights Act of 1964, Court awards and damages.

Backup withholding, Backup Withholding, Backup withholding., Backup withholding.

Backup withholding:

Dividend income, Backup withholding., Reporting tax withheld.

Penalties, Penalties.

Bad check penalty, Payment not honored.

Bad debts:

Bank deposit, loss due to bank's insolvency or bankruptcy, Nonbusiness bad debt., Nonbusiness bad debt.

Bank deposit, loss due to bank's insolvency or bankruptcy:

Reporting on Schedule D (Form 1040), How to report.

Claim for refund, Exceptions for special types of refunds., Filing a claim for refund.

Nonbusiness, Nonbusiness Bad Debts

Recovery, Recoveries

Reporting of, How to report bad debts.

Short-term capital loss, How to report bad debts.

Baggage:

Business-related travel expense, Table 28-1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes.

Balance due, Refund or balance due.

Bankruptcy:

Canceled debt not deemed to be income, Excluded debt.

Financial institution's bankruptcy causing deductible loss, Loss on Deposits

Financial institution's bankruptcy causing deductible loss:

Reporting of, Loss on deposits.

Banks:

Automatic investment service, determination of holding period, Automatic investment service.

IRAs with, When and How Can a Traditional IRA Be Set Up?

Losses on deposits, when casualty losses, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits

Losses on deposits, when casualty losses:

Reporting of, Loss on deposits.

Money market accounts, Money Market Funds

Bar associations:

Charitable contributions to, Contributions to Nonqualified Organizations

Bar employees

Tips (see Tip income)

Bar review courses, Bar or CPA Review Course

Bargain sales:

As charitable contributions, Bargain sales.

Basis of purchase, Bargain purchases.

Barter income:, Bartering

Definition of bartering, Bartering

Form 1099-B, The 1099 Series, Form 1099-B from barter exchange.

Basis

Home sales (see Sale of home)

Basis:

Adjusted basis, Adjusted Basis

Allocation between business and personal use, Introduction

Bad debts, Basis in bad debt required.

Bargain purchases, Bargain purchases.

Bonds, Stocks and Bonds, Bond premium.

Cost basis, Useful Items - You may want to see:

Cost basis:

IRAs for nondeductible contributions, Cost basis., Partly taxable.

Definition of, Introduction

Gifts, Property Received as a Gift

Improvements to real estate, Improvements.

Inheritance, Inherited Property

Involuntary conversion, Involuntary Conversions

Like-kind exchanges, Basis of property received.

Other than cost, Basis Other Than Cost, Tax-exempt obligations., No gain or loss.

Points not to be included, Settlement costs., Points.

Property received for services, Property Received for Services

Real estate, Real Property

Restricted property, Restricted property.

Stock or stock rights, Basis.

Tax-exempt obligations:

Bonds, Tax-exempt obligations.

Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses

Beetles:

Damage or destruction to trees and plants, when casualty loss, Progressive deterioration.

Beneficiaries (see Estate beneficiaries) (see Trust beneficiaries)

Bequests (see Estate beneficiaries) (see Gifts) (see Inheritance)

Bingo, , Contributions From Which You Benefit

Birth control pills,

Birth of child:

Dependent exemption for, Child born alive., Death or birth.

Head of household, qualifying person to file as, Death or birth., Death or birth.

Social Security Number to be obtained, Born and died in 2004.

Blackmail:

Losses due to, Theft

Blind persons:

Exemption from withholding, Age 65 or older or blind.

Guide dogs, deductible as medical expense,

Impairment-related work expenses, deduction for, Impairment-Related Work Expenses (Business or Medical)

Standard deduction for, Introduction, Higher Standard Deduction for Blindness

Blood banks:

No charitable deduction for blood donations to, , Value of Time or Services

Blue books to determine fair market value, Cars, boats, and aircraft., Car value.

Boarding houses, Dwelling unit.

Boats:

Charitable gift of, deduction for fair market value, Cars, boats, and aircraft.

Bona fide business purpose:

Travel expenses, Bona fide business purpose.

Work-related education, Qualifying Work- Related Education

Bonds:

Adjusted basis for, Stocks and Bonds

Amortization of premium, Amortization of bond premium., Amortizable Premium on Taxable Bonds

As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds.

Convertible bonds, Convertible stocks and bonds.

Discounted

Capital gain or loss, Discounted Debt Instruments

Issued at discount, Original Issue Discount (OID)

Market discount bonds, Market discount bonds.

Original issue discount, Original Issue Discount (OID)

Redemption of, Redemption or retirement of bonds.

Retirement of, Retirement bonds., Redemption or retirement of bonds.

Sale of, Bonds Sold Between Interest Dates

Savings, U.S. Savings Bonds, Series HH Bonds., Series EE and series I bonds.

Sold at premium, computation of adjusted basis, Bond premium.

State or local government, tax-exempt, Tax-exempt state and local government bonds.

Tax-exempt, State or Local Government Obligations

Bonuses, Supplemental Wages, Bonuses and awards., Employee awards or bonuses.

Bookkeeping (see Recordkeeping requirements)

Borrowed funds, Loans., Items You Cannot Deduct

(see also Loans)

Borrowed funds:

Used for charitable contributions, deduction for, Borrowed funds.

Bottled water,

Boy Scouts:

Charitable contributions to, Examples.,

Breach of contract

employment, Damages for Breach of Employment Contract

Breach of contract:

Damages as income, Court awards and damages.

Bribes, Bribes.

Bribes and illegal payments, List of Nondeductible Expenses

Brokers, Brokerage and other accounts.

Brokers:

Form 1099-B, The 1099 Series, Sales and Trades

IRAs with, When and How Can a Traditional IRA Be Set Up?

IRAs with::

Commissions, Brokers' commissions., Brokers' commissions.

Receiving dividends, reporting on Form 1099-MISC, Form 1099-MISC.

Burglary:

Losses due to, Theft

Burial expenses, List of Nondeductible Expenses (see Funerals)

Burial expenses: (see Funerals)

Business associates, Meals and Incidental Expenses, Entertainment Expenses

(see also Entertainment expenses)

Business associates:

Business travel to meet, Transportation Expenses

Travel expenses of, paying for, Business associate.

Business expenses:, Meals and Incidental Expenses, Entertainment Expenses

(see also Entertainment expenses)

Job search expenses, Job interview expenses.

Meal expenses (see Meal and lodging expenses)

Reimbursements, Expense allowances., Allowances and reimbursements.

Reimbursements:

Returning excess for business expenses, Expense allowances., Returning Excess Reimbursements

Travel (see Travel and transportation expenses)

Work-related education, What Expenses Can Be Deducted

Business organizations:

Charitable contributions to, Contributions to Nonqualified Organizations

Business property:

As gift, adjusted basis for, Business property.

Basis for depreciation, Basis for depreciation.

Property use changed to, adjusted basis for, Property Changed to Business or Rental Use

Sales or exchanges, Other property transactions.

Sales or exchanges:

Like-kind exchanges, Like-kind exchanges.

Business tax credits:

Claim for refund, Exceptions for special types of refunds.

Business use of home, Home Office

C

Cafeteria plans, Cafeteria plans.

Calendar year taxpayers:

Accounting periods, When Do I Have To File?, Accounting Periods, Accounting period.

Filing due date, When Do I Have To File?

California Nonoccupational Disability Benefit Fund, Contributions to state benefit funds.

Campaign contributions, Campaign contributions., , Contributions to Nonqualified Organizations

Campaign contributions:

Presidential Election Campaign Fund, Presidential Election Campaign Fund

Campaign expenses, Campaign Expenses

Canada:

Contributions to charitable organizations in, Certain foreign charitable organizations., Contributions to Nonqualified Organizations

Cancellation of debt:, Canceled Debts

Exceptions to treatment as income, Exceptions

Candidates for public office:

Contributions to, no charitable deduction for, , Contributions to Nonqualified Organizations

Capital assets:

Coal and iron ore, Coal and iron ore.

Definition of, Capital Assets and Noncapital Assets

Capital gains :

Total net gain, Total net gain or loss.

Capital gains or losses, Capital Gains and Losses, How to report and postpone gain., 17. Reporting Gains and Losses, Tax computation.

Capital gains or losses:

Bad debts as short-term capital loss, How to report bad debts.

Carryover of, Long-term gains and losses., Capital loss carryover.

Carryover of:

Worksheet, Figuring your carryover.

Character of gain, Capital Gains and Losses

Character of loss, Capital Gains and Losses

Child's distributions and dividends, reporting of, Child's capital gain distributions., Capital gain distributions and qualified dividends.

Collectibles, Investment interest deducted.

Deductions, Capital Losses

Deductions:

Limit on, Limit on deduction.

Married filing separately, Special Rules

Distributions, Capital Gain Distributions

Form 1040 or 1040A to be used, You can use Form 1040A if all of the following apply., How To Report Dividend Income, Capital gain distributions only.

Hobbies, sales from collections, Hobby losses.

Holding period, determination of, Holding Period

How to report, Reporting Capital Gains and Losses

Installment sales and, Installment sales.

Lump-sum distributions from pensions and annuities, Capital Gain Treatment

Mutual funds paying, Capital Gain Distributions

Net capital gain, Capital Gains and Losses, Long-term gains and losses., Capital Gain Tax Rates

Net capital gain:

Included as investment income, Choosing to include net capital gain.

Net long-term capital loss, Long-term gains and losses.

Sale of personal items, Sale of personal items.

Sale or trade of property held more than 1 year, Long term or short term., Long-term gains and losses.

Schedule D, Reporting Capital Gains and Losses

Section 1250 gains from sale of real property, Capital Gains and Losses, Unrecaptured section 1250 gain.

State or local government bonds, tax-exempt, Tax-exempt state and local government bonds.

Tax rates, Capital Gain Tax Rates

Tax rates:

Maximum capital gain rates (Table 17-1),

Total net loss, Total net gain or loss.

Undistributed gains, Long-term gains and losses.

Undistributed gains:

Credit for tax on, Undistributed capital gains of mutual funds and REITs., Credit for Tax on Undistributed Capital Gain

Capital losses:

Decedent's deduction, Deduction for Losses

Car expenses

Depreciation (see Depreciation of car)

Car pools, Car pools.

Carrybacks:

Business tax credit carrybacks, Exceptions for special types of refunds.

Carryovers:

Capital loss, Long-term gains and losses., Capital loss carryover.

Capital loss:

Worksheet, Figuring your carryover.

Charitable contributions, when deduction exceeds adjusted-gross-income limits, Carryovers

Investment interest, Limit on Deduction

Cars, Transportation, Transporting school children., 19. Moving Expenses, 28. Car Expenses and Other Employee Business Expenses, Car Expenses

(see also Moving expenses)

(see also Travel and transportation)

Electric vehicles (see Electric cars)

Cars:, Car Expenses

(see also Standard mileage rates)

Accidents resulting in casualty loss, Deductible losses.

Accidents resulting in casualty loss:

Value determination, Car value.

Willful negligence or intentional act as cause, Nondeductible losses.

Actual expenses, Car Expenses, Actual Car Expenses

Advertising displays on, Advertising display on car.

Allowances from employers, Per Diem and Car Allowances

As capital assets, Capital Assets and Noncapital Assets

Blue book to determine fair market value, Cars, boats, and aircraft., Car value.

Business and personal use, allocation between, Business and personal use., Separating expenses.

Business-related travel expenses, Table 28-1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes.

Car pools, Car pools.

Charitable gift of, deduction for fair market value, Cars, boats, and aircraft.

Charitable organization service, use for, Car expenses., Car expenses.

Depreciation, Depreciation and section 179 deductions.

Employer-provided, Employer-Provided Vehicles

Fixed and variable rate (FAVR), Fixed and variable rate (FAVR).

Form 2106 or 2106-EZ, how to fill out, Car expenses.

Hauling tools or instruments, Hauling tools or instruments.

Interest on loans, not deductible, Personal Interest

Leased vehicles, Leasing a car.

Medical transportation, , Transportation, Car expenses.

Parking (see Parking fees)

Personal property taxes on, deduction of, Personal Property Taxes

Reporting of, How To Report

Reporting of:

Table 29-3 showing forms to be used, Table 28-3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements

Sale, trade-in, or other disposition, Sale, Trade-In, or Other Disposition

Section 179 deductions, Depreciation and section 179 deductions.

Work-related education, transportation for, Using your car.

Cash method taxpayers, Cash method.

Cash method taxpayers:

Bad debts, Basis in bad debt required.

Deceased taxpayer, Cash method.

Points, deduction of, Deduction allowed in year paid.

Real estate transactions, tax allocation, Buyers and sellers of real estate.

Taxes paid during tax year, deduction of, The tax must be paid during your tax year.

Worthless securities and negotiable promissory notes, Worthless securities.

Cash rebates, Cash rebates.

Cash:

Dividends paid as, Introduction

Rebates, Cash rebates.

Sales of property for, Payment of cash.

Casualties, Home destroyed or condemned.

Casualty insurance:

Premiums not in property basis, Settlement costs.

Reimbursements from, Casualty insurance and other reimbursements.

Casualty losses, 27. Nonbusiness Casualty and Theft Losses, Net operating loss (NOL)., Certain Casualty and Theft Losses, Certain Casualty and Theft Losses

Casualty losses:

Adjusted basis in property, Casualty and theft losses., Involuntary Conversions, Adjusted Basis, Adjustments to basis.

Amount of loss, Amount of Loss

Appraisals, Appraisal., Costs of photographs and appraisals.

Bank deposit, loss due to bank's insolvency or bankruptcy, Ordinary loss or casualty loss., Casualty loss or ordinary loss.

Costs:

Cleaning up or making repairs, Cost of cleaning up or making repairs.

Photographs and appraisals, Costs of photographs and appraisals.

Deductible losses, Deductible losses.

Deductible losses:

$100 rule, $100 Rule

When to take (Table 27-2),

Deduction limits, Deduction Limits

Deduction limits:

For personal property (Table 27-1),

Definition of casualty, Casualty

Disasters (see Disaster relief)

Employer's emergency disaster fund, Employer's emergency disaster fund.

Fair market value of property, Decrease in Fair Market Value

Form 4684 to be filed, Forms to file.

Insurance proceeds, treatment of, Insurance and Other Reimbursements

Net operating losses, Net operating loss (NOL).

Nondeductible losses, Deductible losses.

Proof of loss, Casualty loss proof.

Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes.

Reimbursement, Insurance and Other Reimbursements

Reporting of gain or loss, When To Report Gains and Losses, Casualty loss., How To Report Gains and Losses

Single casualty on multiple properties, Single Casualty on Multiple Properties

Cellular telephone, Depreciation on Computers or Cellular Telephones

Cemeteries:

Charitable contributions to, Types of Qualified Organizations

Certificate, mortgage credit, Who qualifies.

Certificates of deposit (CDs), Certificates of deposit (CDs)., 18. Individual Retirement Arrangements (IRAs)

(see also Individual retirement arrangements (IRAs))

Chambers of commerce:

Charitable contributions to, , Contributions to Nonqualified Organizations

Entertainment expenses for attending meetings, Trade association meetings.

Change of address, Change of Address

Change of name, Name change., Name changed.

Chaplains:

Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty

Charitable contributions, 26. Contributions, How To Report

Charitable contributions:

$250 or more, recordkeeping requirements, Contributions of $250 or More

$500 or more noncash contribution:

Form 8283 to be used, How To Report

Bargain sales as, Bargain sales.

Benefit received as result of contribution, Contributions From Which You Benefit, Contributions From Which You Benefit

Capital gain property as donation, Capital gain property.

Capital gain property as donation:

Limit on deduction, 50% Limit, 30% Limit, 20% Limit

Carryover of excess deduction, Carryovers

Cash, recordkeeping requirements, Cash Contributions

Deductions:

30% limit of adjusted gross income, 30% Limit

50% limit of adjusted gross income, 50% Limit

Examples of (Table 27-1),

Limits on, Contributions You Can Deduct, Limits on Deductions

Year to claim deduction, When To Deduct

Definition of, Introduction

Dwelling unit used as home, Donation of use of property.

Fair market value of property contributions, Contributions You Can Deduct, Determining Fair Market Value, Amount of deduction — general rule.

Fair market value of property contributions:

Recordkeeping requirements, Additional records.

Gifts to reduce public debt, Gift To Reduce Debt Held by the Public

Itemized deductions, limit on, Reminders

Large quantities of items, Large quantities.

Less than $250, recordkeeping requirements, Contributions of Less Than $250

Noncash contributions, recordkeeping requirements, Noncash Contributions

Nonqualified organizations, Contributions to Nonqualified Organizations

Not deductible, Contributions You Cannot Deduct

Ordinary income property as donation, Ordinary income property.

Payment partly for goods or services, Reminders

Property contributions, Contributions of Property

Property contributions:

Decreased in value, Giving Property That Has Decreased in Value

Increased in value, Giving Property That Has Increased in Value

Publication 78, list of qualified organizations, Organizations That Qualify To Receive Deductible Contributions

Qualified organizations, Organizations That Qualify To Receive Deductible Contributions

Qualified organizations:

Types of, Types of Qualified Organizations

Written statement from, Written statement.

Recordkeeping requirements, Records To Keep

Schedule A (Form 1040) to be used for deductions, How To Report

Time of making contribution, how to determine, Time of making contribution.

To individuals, not deductible, , Contributions to Individuals

Token items given by recipients, Token items.

Volunteers, deductibility of contributions (Table 27-2),

Written acknowledgment from recipient organization, Reminders, Records To Keep, Acknowledgment.

Charitable deduction for living expenses, Student living with you.

Charity benefit events:

Deduction amount for charitable contributions, Charity benefit events.

Check-writing fees, Check-Writing Fees on Personal Account

Checklists:

Medical and dental expense deductions (Table 23-1), What Medical Expenses Are Includible?

Checks:

As charitable contributions, Checks.

Canceled checks as evidence of travel expenses, Canceled check.

Constructive receipt of, Check received or available.

Payment of tax, Check or money order.

Penalty if not honored, Payment not honored.

Child and dependent care credit, You can use Form 1040A if all of the following apply.

Due diligence, Due diligence.

Earned income, Earned income.

Full-time student, Full-time student.

Keeping up a home test, Keeping Up a Home Test

Payments to relatives, Payments to Relatives

Child and dependent care credit:

Married filing separately, Special Rules

Child care

Credit (see Child and dependent care credit)

Employment taxes (see Domestic help)

Child care:

Baby-sitting, Baby-sitting.

Care providers, Child care providers.

Nursing care for healthy baby, not deductible as medical expense,

Child custody:

Support test for dependents, Custody.

Child support, Child support., Child support payments.

Child support:

Alimony, difference from, Payments not alimony., Alimony requirements., Child support.

Home jointly owned, Home jointly owned.

Paid in later year, Paid in a later year.

Remarried parent, Remarried parent.

Third party support, Third-party support.

Child tax credit, Reminders, Who Should File, You can use Form 1040A if all of the following apply.

Child tax credit:, 36. Child Tax Credit, Checking Your Withholding

Additional credit, Additional Child Tax Credit

Amount of credit, Reminders, Amount of Credit

Claiming, procedure for, Claiming the Credit

Eligibility, Child tax credit.

Form 8812, completed, How to claim the additional child tax credit.

Limits, Special Rules, Limits on the Credit

Limits:

Modified adjusted gross income, Modified AGI.

Married filing separately, Special Rules

Qualifying child, Child tax credit., Qualifying Child

Withholding, checking amount, Checking Your Withholding

Childcare:

Credit, 34. Child and Dependent Care Credit

Provider

Taxpayer identification number, Provider Identification Test

Children, Personal Expenses

(see also Adoption)

Credit for (see Child and dependent care credit) (see Child tax credit)

Dividends of (see this heading: Investment income of child under age 14)

Tax credit (see Child tax credit)

Children:, Adoption., Adoption Assistance

(see also Adoption)

Additional credit on child tax credit, Additional Child Tax Credit

Baby-sitters, Baby-sitting.

Birth of child:

Dependent exemption for, Child born alive., Death or birth.

Head of household, qualifying person to file as, Death or birth., Death or birth.

Social Security Number to be obtained, Born and died in 2004.

Care providers, Child care providers.

(see also Child care)

Child's tax, figuring of, Step 3. Figuring the Child's Tax (Form 8615, Part III)

Child's tax, figuring of:

Alternative minimum tax, Alternative minimum tax.

Custody of:

Support test for dependents, Custody.

Death of child

Stillborn child, Stillborn child.

Death of child:

Head of household, qualifying person to file as, Death or birth., Death or birth.

Deductions, Line 2 (deductions).

Definition of, Child defined.

Dependency exemption (see Dependents)

Earnings of, Child's earnings.

Election to use parent's return, effect of making, Effect of Making the Election

Election to use parent's return, effect of making:

Inclusion of child's income on parent's return (Figure 32-A), Effect of Making the Election

Exemption for dependents (see Dependents)

Filing requirements, Child's earnings.

Filing requirements:

As dependents (Table 1-2),

Gifts to, Income from property given to a child., Income from property received as a gift.

Income, calculation of, Figuring Child's Income

Income, calculation of:

Capital gains distributions, Capital gain distributions and qualified dividends.

Investment income of child under age 14, Tax on investment income of a child under age 14., 33. Tax on Investment Income of Certain Minor Children, Illustrated Example

Investment income of child under age 14:

Dependent filing requirements (Table 1-2),

Form 8615, use of (Figure 32-B),

General rules, Introduction

Interest and dividends, Children Under Age 14, You can use Form 1040A if all of the following apply., Tax on investment income of a child under age 14.

Investment income defined, Investment income defined.

Parental information, providing of, Providing Parental Information (Form 8615, lines A–C)

Parents' election to report on Form 1040, Children Under Age 14, Investment income of child reported on parent's return., Which Parent's Return To Use, Parent's Election To Report Child's Interest and Dividends

Trust income, Trust income.

Net investment income, figuring of, Step 1. Figuring the Child's Net Investment Income (Form 8615, Part I)

Nontaxable income, Nontaxable income.

Property received as gift, income from, Income from property received as a gift.

Signing return, parent for child, Spouse unable to sign.

Standard deduction for, Introduction, Standard Deduction for Dependents

Stillborn child, Stillborn child.

Support of (see Child support)

Tentative tax figured at parent's tax rate, Step 2. Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II)

Transporting school children, Transporting school children.

Chronic illness

Accelerated payment of life insurance proceeds (see Accelerated death benefits)

Long-term care (see Long-term care insurance contracts)

Church employees:

Filing requirements (Table 1-3),

Churches, temples, etc.:

Charitable contributions to, Examples.,

Charitable contributions to:

50% limit on deduction, 50% limit organizations.

Convention delegates, deduction of unreimbursed expenses, Conventions.

Citizens outside U.S.

Employment (see Foreign employment)

Citizens outside U.S.:

Business travel outside U.S., Travel Outside the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons

Business travel outside U.S.:

Self-employed persons, Exception 1 - No substantial control.

Standard meal allowance, Standard meal allowance for areas outside the continental United States.

Earned income exclusion, Reminders

Extension of time to file, Individuals Outside the United States

Filing requirements, U.S. Citizens and Residents Living Outside the United States

Moving expenses for move outside U.S., Moves to locations outside the United States.

Withholding from IRA distributions, IRA distributions delivered outside the United States.

Citizenship:

Dependency exemption test, Citizen or Resident Test

Civic associations:

Charitable contributions to, Contributions to Nonqualified Organizations

Contributions to, no charitable deduction for,

Civil defense organizations:

Charitable contributions to, Examples.

Civil service retirement benefits, Civil service retirement benefits.

Civil suits, Court awards and damages.

(see also Damages from lawsuits)

Civil tax penalties (see Penalties)

Clean-fuel vehicles, Deduction for clean-fuel vehicle and refueling property.

Clergy, Ministers.

Clergy:

Contributions that can be spent as individual wishes, not deductible charitable contribution, Contributions to Individuals

Housing, Clergy

Housing:

Real estate taxes when receiving housing allowance, Minister's and military personnel housing allowances., Ministers' and military housing allowance.

Life insurance proceeds when chaplain died in line of duty, Public Safety Officer Killed in the Line of Duty

Pensions, Pension.

Special income rules, Clergy

Clerical help, deductibility of, Clerical Help and Office Rent

Clients, Meals and Incidental Expenses, Entertainment Expenses

(see also Entertainment expenses)

Clients:

Business travel to meet, Transportation Expenses

Travel expenses of, paying for, Business associate.

Closing costs:

Real property transactions, Settlement costs.

Sale of home, Settlement fees or closing costs.

Clothing, work, Work Clothes and Uniforms

Clothing:

Military, Military uniforms.

Moth damage, not casualty loss, Progressive deterioration.

Uniforms:

Charitable organization requiring, deduction for cost and upkeep of, Uniforms.

Used clothing, charitable deduction for fair market value, Used clothing and household goods.

Club dues and membership fees:

Entertainment expenses, Club dues and membership fees.

Co-owners:

Dwelling unit used as home by co-owner, rental income and expense allocation, Shared equity financing agreement.

Coal and iron ore, Coal and iron ore.

Coins (see Collectibles)

Collectibles:

As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc.

Gains or losses from sale or trade of, Investment interest deducted.

IRA investment in, Investment in Collectibles, Exception.

Collective bargaining agreements, Union agreements.

College professor:

Research expenses, Research Expenses of a College Professor

Colleges and universities

Education costs (see Qualified tuition programs) (see Tuition)

Employer-provided educational assistance (see Educational assistance)

Colleges and universities:

Charitable contributions to, Examples.,

Charitable contributions to:

50% limit on deduction, 50% limit organizations.

Athletic events, amount deductible, Athletic events.

Combat pay election., What's New

Combat zone:

Extension to file return, Individuals Serving in Combat Zone

Signing return for spouse, Spouse in combat zone.

Comments on publication, Comments and suggestions.

Commission drivers:

Deduction of expenses, Statutory employees.

Commissions, Supplemental Wages

Commissions:

Advance, Advance commissions and other earnings.

IRAs with brokers, Brokers' commissions., Brokers' commissions.

Property basis to include when buyer pays, Settlement costs.

Sharing of (kickbacks), Kickbacks.

Unearned, deduction for repayment of, Advance commissions and other earnings.

Commodities:

Derivative financial instruments, Capital Assets and Noncapital Assets

Common law marriage, Considered married.

Communist organizations:

Charitable contributions to, Contributions to Nonqualified Organizations

Community property, Community income., Community property.

Community property:

Alimony, difference from, Payments not alimony.

IRAs, Community property laws.

Married filing separately, Community property states.

Medical and dental expenses, Community property states.

Commuting expenses, Commuting expenses., Commuting Expenses

Commuting expenses:

Employer-provided commuter vehicle, Commuter highway vehicle.

Compensation, 6. Wages, Salaries, and Other Earnings

(see also Wages and salaries)

Compensation:

Defined for IRA purposes, What is compensation?

Defined for Roth IRA purposes, Compensation.

Employee, Employee Compensation

Miscellaneous compensation, Miscellaneous Compensation

Nonemployee, Nonemployee compensation.

Computation of tax, Computations

Computation of tax:

Equal amounts, Equal amounts.

Negative amounts, Negative amounts.

Rounding off dollars, Rounding off dollars.

Computer, Depreciation on Computers or Cellular Telephones

Condemnation of property, Home destroyed or condemned., Condemnations.

Condemnation of property:

Basis computation, Involuntary Conversions

Disaster areas, government-ordered demolition of unsafe home, Deductible losses.

Period of ownership and use, Previous home destroyed or condemned.

Confidential information:

Privacy Act and paperwork reduction information, Reminders

Travel expenses and, Confidential information.

Conservation:

Charitable contribution to promote, recordkeeping requirement, Qualified Conservation Contribution

Constructive receipt of income, Constructive receipt., Payment to an agent., Constructive receipt.

Contributions, Gift To Reduce Debt Held by the Public, Donation of use of property., Campaign contributions., 26. Contributions, , Contributions to Nonqualified Organizations, How To Report

(see also Campaign contributions)

(see also Charitable contributions)

Retirement (see specific type of plan)

Contributions:

Political, Political Contributions

Controlled corporations:

Nontaxable stock purchase of, Property for stock of a controlled corporation.

Related party transactions, Losses on sales or trades of property.

Conventions:

Delegates:

Deduction of unreimbursed expenses, Conventions.

Travel expenses, Conventions

Travel expenses, Conventions

Work-related education, deduction of travel expenses for overseas conventions, Cruises and conventions.

Conversion (see specific retirement or IRA plan)

Convertible stocks and bonds, Convertible stocks and bonds.

Cooperative housing:

Depreciation deduction for rented unit, Cooperative apartments.

Dwelling unit used as home, Introduction

Mortgage interest statements, Mortgage Interest Statement

Real estate taxes, deduction of, Tenant-shareholders in a cooperative housing corporation.

Real estate taxes, deduction of:

Taxes that are deductible (Table 24-1),

Sale or trade of:

Form 1099-S to report, Form 1099-S transactions.

Period of ownership and use, Cooperative apartment.

Cooperatives:

Patronage dividends, Patronage dividends.

Copyrights, Capital Assets and Noncapital Assets

Copyrights:

Infringement damages, Court awards and damages.

Royalties, Royalties

Corporations, S Corporation Income

(see also S corporations)

Corporations:

Controlled corporations, Property for stock of a controlled corporation., Losses on sales or trades of property.

Director fees as self-employment income, Corporate director.

Reorganizations and nontaxable trade of stock, Corporate reorganizations.

Corrections (see Errors)

Cosmetic surgery:

Not deductible as medical expense,

Cosmetics:

Not deductible as medical expense,

Cost basis, Useful Items - You may want to see:

Cost basis:

IRAs for nondeductible contributions, Cost basis., Partly taxable.

Cost-of-living allowances, Government cost-of-living allowances.

Country clubs:

Charitable contributions to, Contributions to Nonqualified Organizations

Dues:

Charitable deduction not allowed, , Membership fees or dues.

Entertainment expense deduction not allowed, Club dues and membership fees.

Coupon bonds, Coupon bonds.

Court awards and damages (see Damages from lawsuits)

Coverdell ESAs, Coverdell education savings account (ESA).

Coverdell ESAs:

Additional tax on, Other taxes.

Filing requirements (Table 1-3),

CPAs (see Accountants)

Credit card payment of taxes:

Estimated tax, How To Pay Estimated Tax, Payment by Electronic Funds Withdrawal or Credit Card

Credit cards:

Annual fees, not deductible, Items You Cannot Deduct

Benefits, taxability of insurance, Credit card insurance.

Charitable contributions charged to, Credit card.

Finance charges, not deductible, Personal Interest

Payment of taxes, Reminders, E-file and pay by credit card., Credit card.

Payment of taxes:

Convenience fee of service providers, Credit card.

Installment agreements, Installment Agreement

Credit for child and dependent care expenses, Credit for child and dependent care expenses., Credit for child and dependent care expenses.

Credit for the elderly or the disabled, Credit for the elderly or the disabled., Credit for the elderly or the disabled.

Nontaxable payments, Nontaxable payments.

Credit reports:

Costs not included in property basis, Settlement costs.

Fees for, not deductible, Items You Cannot Deduct

Credits, You can use Form 1040A if all of the following apply., Credits., Earned income credit., Credit for child and dependent care expenses., Credit for the elderly or the disabled., Earned income credit., Credit for child and dependent care expenses., Credit for the elderly or the disabled., Earned income credit.

(see also Adoption)

Child and dependent care (see Child and dependent care credit)

Child tax (see Child tax credit)

Earned income (see Earned Income Credit)

Education (see Education credits)

Health coverage tax (see Health coverage tax credit)

Credits:

Alternative minimum tax, credit for prior year tax, Credit for Prior Year Minimum Tax, How to claim the credit.

Capital gains, undistributed, credit for tax on, Undistributed capital gains of mutual funds and REITs., Credit for Tax on Undistributed Capital Gain

Changing claim, Amended Returns and Claims for Refund

Child and dependent care, 34. Child and Dependent Care Credit

Child tax (see Child tax credit)

Decedent's return, Credits

Earned income, 38. Earned Income Credit (see Earned Income Credit)

Electric vehicles (see Electric cars)

Empowerment zone and renewal community employment credit, Credits.

Excess withholding of social security and tier 1 railroad retirement tax (see Excess withholding credit)

For the disabled, 35. Credit for the Elderly or the Disabled

For the elderly, 35. Credit for the Elderly or the Disabled

Foreign tax (see Foreign tax credit)

Fuel from a nonconventional source, Credits.

Hope scholarship, Special Rules

Lifetime learning (see Lifetime learning credit)

Mortgage interest (see Mortgage interest credit)

Nonrefundable credits, Nonrefundable credits.

Other than those on Form 1040A, Form 1040 to be used, You must use Form 1040 if any of the following apply.

Refundable, Refundable credits., Refundable Credits

Retirement savings contribution (see Retirement savings contribution credit)

Cremation:

Not deductible as medical expense,

Criminal prosecutions:

Travel expenses for federal staff, Exception for federal crime investigations or prosecutions.

Cruises:

Travel expenses when incidental business activities, Trip Primarily for Personal Reasons

Work-related education, deduction of expenses, Cruises and conventions.

Custodial fees, Investment Fees and Expenses

Custodial parent:

Child and dependent care credit, Custodial parent.

Customers, Meals and Incidental Expenses, Entertainment Expenses

(see also Entertainment expenses)

Customers:

Business travel to meet, Transportation Expenses

Travel expenses of, paying for, Business associate.

D

Daily allowance (see Per diem)

Damage to property (see Casualty losses)

Disasters (see Disaster relief)

Damages, Damages for Breach of Employment Contract

Damages from lawsuits, Court awards and damages.

Damages from lawsuits:

Medical expenses as part of settlement, Damages for Personal Injuries

Dating your return, Signatures

Daycare centers (see Child and dependent care credit) (see Child care)

De minimis benefits, De Minimis (Minimal) Benefits

Deadlines (see Due dates)

Death (see Decedents)

Death benefits:

Accelerated, Accelerated Death Benefits, Accelerated Death Benefits, Exclusion for terminal illness.

Life insurance proceeds (see Life insurance)

Public safety officers who died or were killed in line of duty, tax exclusion, Reminders, Public Safety Officer Killed in the Line of Duty

Debt instruments (see Bonds or Notes)

Debts, Exceptions for special types of refunds., Recoveries

(see also Bad debts)

Canceled (see Cancellation of debt)

Debts:

Nonrecourse, Mortgage relief upon sale or other disposition.

Paid by another, Debts paid for you.

Payoff of debt included in sales transaction, Debt paid off.

Public, gifts to reduce, Gift To Reduce Debt Held by the Public

Recourse, Mortgage relief upon sale or other disposition.

Refund offset against, Refunds., Offset against debts.

Deceased taxpayers (see Decedents)

Decedents, Surviving Spouses, Executors, Administrators, and Legal Representatives, 4. Decedents, Deductions in Respect of the Decedent (see Executors and administrators)

(see also Executors and administrators)

Funeral expenses, Contributions to Individuals

Decedents:

Accelerated death benefits, Accelerated Death Benefits

Capital loss of, Decedent's capital loss.

Deceased spouse, Surviving Spouses, Executors, Administrators, and Legal Representatives

Deceased spouse:

Personal exemption, Death of spouse.

Deductions in respect of, Deductions in Respect of the Decedent

Dependent of survivor, Decedent as your dependent.

Due dates, Filing for a decedent.

Effect on tax liability of survivors, Tax Effect on Others

Executors and administrators, Executor., Administrator., Personal representative.

Filing requirements, Surviving Spouses, Executors, Administrators, and Legal Representatives

Funeral expenses (see Funerals)

Income in respect of, Income in Respect of the Decedent

Joint returns, Joint return., Personal representative may revoke joint return election., Joint return by surviving spouse.

Medical and dental expenses, Decedent

Moving expenses deduction for survivors of decedent working abroad, Survivors of decedents who were working abroad.

Savings bonds, Decedents.

Spouse's death, Spouse died., Spouse died during the year.

Standard deduction, Decedent's final return.

Transfer of property at death, Other property transactions.

Declaration of rights of taxpayers:

IRS request for information, Reminders

Deductions, Nonbusiness Bad Debts, How to report bad debts., Capital Losses

(see also Bad debts)

(see also Capital losses)

Casualty losses (see Capital losses)

IRA contributions (see Individual retirement arrangements (IRAs))

Itemizing (see Itemized deductions)

Student loan interest deduction (see Student loans)

Tuition and fees (see Tuition)

Deductions:, Special Rules, 3. Personal Exemptions and Dependents, What's New for 2004, Your Own Exemption, Phaseout of Exemptions, Depreciation Methods, Recoveries, 22. Standard Deduction, Points, Treatment by buyer., Meals and Incidental Expenses, Entertainment Expenses

(see also Depreciation)

(see also Entertainment expenses)

(see also Personal exemption)

(see also Points)

(see also Recovery of amounts previously deducted)

(see also Standard deduction)

Alimony, deductible by payer, Introduction, How To Deduct Alimony Paid

Business expenses (see Business expenses)

Casualty losses, Certain Casualty and Theft Losses

Changing claim after filing, need to amend, Amended Returns and Claims for Refund

Charitable contributions, 26. Contributions, How To Report

(see also Charitable contributions)

Clean-fuel vehicles, Deduction for clean-fuel vehicle and refueling property.

Decedent, in respect of, Deductions in Respect of the Decedent

Dental expenses (see Medical and dental expenses)

Depreciation, Depreciation and section 179 deduction.

Disaster relief contributions to qualified organizations, Reminders

Educator expenses, You can use Form 1040A if all of the following apply., Educator Expenses

Estate, Excess Deductions of an Estate

Fee-basis government officials, Special Rules

Impairment-related work expenses, Impairment-Related Work Expenses (Business or Medical), Impairment-related work expenses of disabled employees.

Interest (see Interest payments)

Investment expenses, Investment expenses.

Itemizing (see Itemized deductions)

Long-term care insurance contracts,

Meal expenses (see Meal and lodging expenses)

Medical expenses (see Medical and dental expenses)

Mortgage interest (see Mortgages)

Moving expenses, Who Can Deduct Moving Expenses, Where to deduct.

Not itemizing, use of Form 1040A, You can use Form 1040A if all of the following apply.

Pass-through entities, Indirect Deductions of Pass-Through Entities

Penalties, no deduction permitted, Penalties.

Performing artists' expenses, Expenses of certain performing artists.

Personal exemption (see Personal exemption)

Prepaid insurance premiums, Prepaid insurance premiums.

Prescription medicines,

Rental expenses, When to deduct., Property Not Used as a Home

Repayments, Repayments

Section 179 deductions:

Adjustment to basis for, Depreciation and section 179 deduction.

Car expenses, Depreciation and section 179 deductions.

Self-employed persons:

Health insurance premiums, Health Insurance Costs for Self-Employed Persons

Social security and railroad retirement benefits, Deductions Related to Your Benefits

Standard deduction, Standard Deduction, 22. Standard Deduction, Married persons who filed separate returns.

Stop-smoking programs,

Student loan interest deduction (see Student loans)

Theft loss, Certain Casualty and Theft Losses

Transportation expenses (see Travel and transportation expenses)

Tuition and fees (see Tuition)

Union dues (see Labor unions)

Work-related education, What Expenses Can Be Deducted

Deeds:

Preparation costs for, Amounts charged for services.

Recording fees, basis to include, Real estate taxes.

Deferred annuity contracts (see Annuities)

Deferred compensation plans (see Retirement plans)

Deferred compensation:

Limit, Elective deferrals.

Delinquent taxes:

Real estate transactions, tax allocation, Real estate taxes for prior years.

Delivery services, Reminders, Private delivery services.

Delivery services:

Business-related travel expense, Table 28-1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes.

Demutualization of life insurance companies, Demutualization of life insurance companies.

Dental expenses (see Medical and dental expenses)

Dentures:

Deductibility as medical expense,

Dependent care:

Benefits, Dependent care benefits., Dependent Care Benefits

Forfeitures, Forfeitures.

Center, Dependent care center.

Credit for, 34. Child and Dependent Care Credit

Dependent's education expenses, claiming:

Education credit, Who Can Claim a Dependent's Expenses, Tuition reduction.

Dependents, Who Should File, You can use Form 1040A if all of the following apply.

(see also Adoption)

(see also Child tax credit)

Dependents:, Adoption.

(see also Adoption)

Born and died within year, Exception., Born and died in 2004.

Child, defined, Child defined.

Deceased dependent's medical and dental expenses, What if you pay medical expenses of a deceased spouse or dependent?

Disabled dependent care expenses, deduction for, Disabled Dependent Care Expenses

Exemptions, Single persons., Exemptions for Dependents

Exemptions:

Chart summarizing claims (Figure 3-A),

Child born alive, Child born alive.

Child tax credit available, Child tax credit.

Death during year, Death of dependent., Decedent as your dependent.

Disabled, Disabled dependents.

Housekeepers, maids, servants, Housekeepers, maids, or servants.

Kidnapped child, Kidnapped child.

Stillborn child, Stillborn child.

Filing requirements, Child's earnings.

Filing requirements:

Earned income, unearned income, and gross income levels (Table 1-2),

Foster children (see Foster care)

Medical and dental expenses of, Dependent.

Social security number, Dependent's social security number.

Social Security Number, Phaseout of Exemptions

Social security number:

Adoption taxpayer identification number, Adoption taxpayer identification number (ATIN).

Alien dependents, Alien dependent.

Social Security Number:

Adoption taxpayer identification number, Taxpayer identification numbers for aliens.

Alien dependents, Born and died in 2004.

Standard deduction for, Standard Deduction for Dependents

Standard deduction for:

Worksheet (Table 22-3), Electing to itemize for state tax or other purposes.

Tests to claim, Dependency Tests

Tests to claim:

Citizen or residency test, Citizen or Resident Test

Gross income test, Gross Income Test

Joint return test, Joint Return Test

Member of household or relationship test, Member of Household or Relationship Test

Multiple support agreement, Multiple Support Agreement

Support test, Support Test

Travel expenses for, Travel expenses for another individual.

Tuition deduction for, Who Can Claim a Dependent's Expenses

Depletion allowance, Depletion.

Deposits:

Loss on, Loss on Deposits

Losses on, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits

Losses on:

Reporting of, Loss on deposits.

Depreciation

Cellular telephone, Depreciation on Computers or Cellular Telephones

Computer, Depreciation on Computers or Cellular Telephones

Home computer, Depreciation on Home Computer

Depreciation:

ACRS, Depreciation Methods

(see also ACRS (Accelerated Cost Recovery System))

Adjustment to basis for, Depreciation and section 179 deduction.

Alternative minimum tax and accelerated depreciation, Alternative minimum tax.

Cars, Depreciation and section 179 deductions.

Change of use of property, Basis for depreciation.

Cooperative apartments, deduction for rented unit, Cooperative apartments.

Correcting amount claimed, Claiming the correct amount of depreciation.

Form 4562:

Rental property depreciation, Depreciation

MACRS, Depreciation Methods, MACRS

(see also MACRS (Modified Accelerated Cost Recovery System))

Methods of, Depreciation Methods

Property used in trade or business, as noncapital assets, Capital Assets and Noncapital Assets

Real property:

Gain from disposition of property, Gain from disposition., Depreciation after May 6, 1997.

Land, no depreciation of, Land.

Rental property, Depreciation., Depreciation

Rental property:

Special depreciation allowance, Special Depreciation Allowance

Useful lives and either straight line or accelerated method of depreciation, Depreciation Methods

Destroyed records, Destroyed records.

Diaper service,

Direct deposit of refunds, Refunds

Directors' fees, Corporate director.

Disabilities, persons with, Physically or mentally not able to care for oneself.

Blind (see Blind persons)

Credit for (see Elderly or disabled, credit for)

Disabilities, persons with: (see Physically or mentally not able to care for oneself.)

Accrued leave payment, Accrued leave payment.

Armed forces, Disability.

Blind (see Blind persons)

Cafeteria plans, Cafeteria plans.

Credit for, 35. Credit for the Elderly or the Disabled

Dependency exemption, gross income test for, Disabled dependents.

Dependent who is disabled, deduction for care expenses, Disabled Dependent Care Expenses

Expenses for, Impairment-Related Work Expenses

Guide dogs, deductible as medical expense,

Impairment-related work expenses of, Impairment-Related Work Expenses (Business or Medical), Impairment-related work expenses of disabled employees.

Impairment-related work expenses of:

Work-related education, Impairment-Related Work Expenses

Income, Disability Pensions

Insurance costs, Cost paid by you.

Military and government pensions, Military and Government Disability Pensions

Public assistance benefits, Persons with disabilities.

Reporting of disability pension income, How to report.

Retirement, pensions, and profit-sharing plans, Disability income., Retirement and profit-sharing plans.

Signing of return by court-appointed representative, Unable to sign.

Social security and railroad retirement benefits, deductions for, Disability payments.

Special school or home for, deductibility of medical expense,

Terrorist attack as cause of injury, disability payments excluded from taxation, Disability Pensions

Workers' compensation, Workers' Compensation

Disability benefits:

Earned Income Credit, Disability Benefits

Disability insurance payments:

Earned Income Credit, Disability insurance payments.

Disability, permanent and total disability, Permanent and total disability.

Disability:

Income, Disability income.

Disaster Assistance Act of 1988:

Withholding, Federal Payments

Disaster relief, Terrorist attack or military action., Disability Pensions, Disaster relief.

(see also Terrorist attacks)

Disaster relief:, Disaster relief payments.

Cash gifts to victims, Cash gifts.

Deductions for contributions to qualified organizations, Reminders

Disaster Relief and Emergency Assistance Act:

Grants, Disaster relief grants.

Unemployment assistance, Types of unemployment compensation.

Employer's emergency disaster fund, Employer's emergency disaster fund.

Government-ordered demolition or relocation of home that is unsafe due to, Deductible losses.

Grants or payments, Disaster relief grants.

Replacement of lost or destroyed property, Disaster relief.

Disclosure statement, Disclosure statement.

Discount, bonds and notes issued at, Original Issue Discount (OID)

Discounted debt instruments:, The 1099 Series

(see also Original issue discount (OID))

Capital gain or loss, Discounted Debt Instruments

Discounts:

Employee discounts, effect on basis, Bargain purchases.

Distributions, Eligible rollover distributions.

(see also Rollovers)

Early (see Early withdrawal from deferred interest account)

Hardship (see Hardship distributions)

Lump sum (see Lump-sum distributions)

Required minimum distributions (see Individual retirement arrangements (IRAs)) (see Pensions)

Distributions:, The 1099 Series

(see also Dividends)

Liquidating distributions, Liquidating Distributions

Nondividend distributions, Nondividend Distributions

Return of capital, Nondividend Distributions

District of Columbia first-time homebuyer credit, Credits.

Dividends, 9. Dividends and Other Corporate Distributions, More information.

Alaska Permanent Fund (see Alaska Permanent Fund dividends)

Form 1099-DIV (see Form 1099-DIV)

Dividends:, Form 1099-DIV.

(see also Form 1099-DIV)

Alaska Permanent Fund (see Alaska Permanent Fund dividends)

As stock dividends and stock rights, Distributions of Stock and Stock Rights

Backup withholding, Backup withholding.

Beneficiary of estate or trust receiving, Beneficiary of an estate or trust.

Buying more stock with, Dividends Used to Buy More Stock

Deceased taxpayer, reporting of, Interest and Dividend Income (Forms 1099)

Defined, Introduction

Exempt-interest dividends, Other Distributions

Expenses related to, deduction of, Expenses related to dividend income.

Fees to collect, Fees to Collect Interest and Dividends

Foreign income, Reminder

Form 1040A, use of, You can use Form 1040A if all of the following apply.

Holding period, determination of, Stock dividends.

Insurance dividends, Dividends on insurance policies.

Money market funds, Money Market Funds

Nominees receiving on behalf of another, Nominees.

Nondividend distributions, Nondividend Distributions

Ordinary dividends, Ordinary Dividends

Patronage dividends, Patronage dividends.

Qualified, Qualified Dividends, Qualified dividends.

Real estate investment trusts (REITs) paying, Capital Gain Distributions

Redemption treated as, Dividend versus sale or trade.

Reinvestment plans, Dividends Used to Buy More Stock

Reporting of, How To Report Dividend Income

Reporting of:

As interest, Introduction

Scrip dividends, Scrip dividends.

Sold stock, Dividends on stock sold.

Stockholder debts when canceled as, Stockholder debt.

Veterans' insurance, Dividends on veterans' insurance.

Divorced taxpayers, Alimony.

(see also Alimony)

Divorced taxpayers:

Child and dependent care credit, Child of Divorced or Separated Parents

Child custody:

Support test for dependents, Custody.

Definition of divorce instrument for purposes of alimony, Divorce or separation instrument.

Dependent support test, Support Test for Child of Divorced or Separated Parents

Dependent support test:

Chart (Figure 3-B),

Post-1984 divorce decree or separation agreement, Divorce decree or separation agreement made after 1984.

Estimated tax payments, Divorced Taxpayers

Filing status, Divorced persons., Divorced persons.

IRAs, Spousal IRA., Transfers Incident to Divorce

Medical and dental expenses of children of, Child of divorced or separated parents.

Mortgage interest, payment as alimony, Divorced or separated individuals.

Personal exemption, Divorced or separated spouse.

Real estate taxes, allocation of, Divorced individuals.

Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses

Use of home after divorce, Use of home after divorce.

Doctors' bills (see Medical and dental expenses)

Documentary evidence:

Recordkeeping requirements, Documentary evidence.

Domestic help:

Dependent exemption not applicable, Housekeepers, maids, or servants.

Withholding, Household workers.

Domestic relations orders, qualified (QDROs):

Rollover of retirement plan distribution, Alternate payee under qualified domestic relations order.

Donations (see Charitable contributions)

Droughts:

Losses of property due to, Progressive deterioration.

Drug or alcohol rehabilitation centers:

Deductibility of medical expense,

Drugs:

As medical expenses:

Over-the-counter drugs, not deductible,

Prescription medicines, deductibility,

Dry cleaning:

Business-related travel expense, Table 28-1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes., Incidental expenses.

Dual-status taxpayers, Dual-status taxpayer.

Dual-status taxpayers:

Joint returns not available, Nonresident alien or dual-status alien.

Standard deduction, Persons not eligible for the standard deduction.

Due dates, Balance due., When Do I Have To File?, Private delivery services.

Extension (see Extension of time to file)

Due dates:

2004 dates (Table 1-5),

Deceased taxpayer, When and where to file.

Disaster areas, postponed deadlines, Postponed tax deadlines.

Nonresident aliens' returns, Nonresident alien.

Due diligence

Child and dependent care credit, Due diligence.

Dues:

Chamber of Commerce, Dues to Chambers of Commerce and Professional Societies

Club, Club Dues

Union, Union Dues and Expenses

Dwelling units, Keeping Up a Home, Home jointly owned.

(see also Home)

Cooperative (see Cooperative housing)

Dwelling units:, Personal Use of Dwelling Unit (Including Vacation Home), Dwelling Unit Used as Home, Examples, How To Divide Expenses

(see also Vacation homes)

Cooperative (see Cooperative housing)

Defined, Dwelling unit.

Renting (see Rental income and expenses)

E

E-file, Reminders, Reminders, IRS e-file

E-file:

Extensions of time to file, How to get the automatic extension.

Forms 8453 and 8453-OL for signature requirements, Forms 8453 and 8453-OL.

On time filing, Electronically filed returns.

Early withdrawal from deferred interest account

Form 1099-R reporting (see Form 1099-R)

Form 5329 reporting (see Form 5329)

Early withdrawal from deferred interest account:

Annuities,

Higher education expenses, exception from penalty, Reminders

IRAs:

Early distributions, defined, Early distributions defined.

Penalties, Early distributions tax., Early Distributions

Section 457 deferred compensation plans,

Tax on, Special Additional Taxes, Tax on Early Distributions

Earned income, Rule 15. Your Earned Income Must Be Less Than:

Child and dependent care credit, Earned income.

Earned Income Credit, Earned income credit., Earned income credit., Earned income credit., 38. Earned Income Credit

Earned Income Credit:

2004 changes, What's New for 2004

Advance, Reminders, You can use Form 1040EZ if all of the following apply.

Advance:

Filing requirements (Table 1-3),

Amount of earned income, What's New for 2004

Considered unmarried, Earned income credit.

Disability benefits, Disability Benefits

Disability insurance payments, Disability insurance payments.

Filing claim, Who Should File

Foster child, Eligible foster child.

Investment income, limit on, What's New for 2004

Married filing separately, Special Rules

Military personnel, Military personnel stationed outside the United States.

Social security card, Social security number.

Social Security Number, Social security number.

Earned income:

Defined:

For purposes of standard deduction, Earned income defined.

Dependent filing requirements (Table 1-2),

Employee, Rule 7. You Must Have Earned Income

Nontaxable, What's New

Self-employed, Rule 7. You Must Have Earned Income

Earthquakes, Disaster relief.

(see also Disaster relief)

Earthquakes:

Casualty loss caused by, Deductible losses.

Easements:

Adjustment to basis for, Easements.

Education credits, You can use Form 1040A if all of the following apply.

Education credits:, 37. Education Credits, Information for Only the Hope Credit, Illustrated Example (see Hope credit; Lifetime learning credit)

(see also Hope credit)

Academic period, Academic period.

Can you claim (Figure 37-A), When Must the Credit Be Repaid (Recaptured)

Comparison chart (Table 37-1),

Dependent's education expenses, claiming, Who Can Claim a Dependent's Expenses

Eligible educational institution, Eligible educational institution.

Expenses, qualified education, What Expenses Qualify, Comprehensive or bundled fees.

Form 8863, completed sample, Illustrated Example

General requirements, Who Can Claim a Credit

Income limits, Effect of the Amount of Your Income on the Amount of Your Credit

Married filing separately, Special Rules, Who Cannot Claim a Credit

Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI).

Phaseout of credit, Effect of the Amount of Your Income on the Amount of Your Credit

Qualified education expenses, What Expenses Qualify, Comprehensive or bundled fees.

Recapture of, You can use Form 1040A if all of the following apply.

Recapture of:

Filing requirements (Table 1-3),

Timing of, When Must the Credit Be Repaid (Recaptured)

Refund of expenses, Refunds.

Tuition deduction and, No Double Benefit Allowed

Who cannot claim, Who Cannot Claim a Credit, Can You Claim a Credit

Education expenses, You can use Form 1040A if all of the following apply.

(see also Tuition)

Employer-provided (see Educational assistance)

Tuition (see Qualified tuition programs)

Education expenses:, Tuition and Fees Deduction

(see also Tuition)

Employer-provided (see Educational assistance)

Teacher's out-of-pocket expenses, You can use Form 1040A if all of the following apply., Educator Expenses

Work-related education, deduction of expenses, Cruises and conventions.

Education savings accounts (see Coverdell ESAs)

Education:

Savings bond program, Education Savings Bond Program

Educational assistance, You can use Form 1040A if all of the following apply.

(see also Tuition)

Scholarships (see Scholarships and fellowships)

Tuition (see Qualified tuition programs)

Educational assistance:, Tuition and Fees Deduction

(see also Tuition)

Employer-provided, Educational Assistance

Employer-provided:

Tuition deduction, effect on, Tax-free educational assistance.

Educational institution (see Eligible educational institution)

Educational organizations:

As related party in transactions, Losses on sales or trades of property.

Charitable contributions to, Types of Qualified Organizations, Examples.,

Charitable contributions to:

50% limit on deduction, 50% limit organizations.

Educator out-of-pocket expenses, You can use Form 1040A if all of the following apply., Educator Expenses

Educators:

Excess over limit, Educator Expenses Over Limit

Expenses, Educators.

EE series bonds (see U.S. savings bonds)

EIC (see Earned Income Credit)

Elderly or disabled, credit for, You can use Form 1040A if all of the following apply.

Elderly or disabled, credit for:

Married filing separately, Special Rules

Elderly persons, 11. Retirement Plans, Pensions, and Annuities, Employee Pensions and Annuities

(see also Pensions)

Credit for (see Elderly or disabled, credit for)

Long-term care (see Long-term care insurance contracts)

Elderly persons:

Exemption from withholding, Age 65 or older or blind.

Home for the aged, Home for the aged.

Nutrition Program for the Elderly, Nutrition Program for the Elderly.

Standard deduction for age 65 or older, Introduction, Higher Standard Deduction for Age (65 or Older)

Standard deduction for age 65 or older:

Filing status (Chart), Electing to itemize for state tax or other purposes.

Tax Counseling for the Elderly, Free Help With Your Return

Election precinct officials:

Fees, reporting of, Election precinct official.

Elective deferrals, 11. Retirement Plans, Pensions, and Annuities

(see also Retirement plans)

Elective deferrals:

Limits, Elective deferrals.

Elective surgery:

Not deductible as medical expense,

Electric cars:

Credit, Car Expenses

Credits, Qualified Electric Vehicle Credit

Credits:

Adjustment to basis, Credit for qualified electric vehicles.

Amount of, Amount of credit.

Filing requirements (Table 1-3),

How to claim, How to claim the credit.

Qualified electric vehicle, Qualified electric vehicle.

Recapture of, Recapture.

Electronic filing (see E-file)

Electronic payment options, Reminders, Credit card.

Electronic payment options:

Credit card, Credit card., How To Pay Estimated Tax

Electronic Federal Tax Payment System (EFTPS), Electronic Federal Tax Payment System (EFTPS)., How To Pay Estimated Tax

Electronic funds withdrawal, Electronic funds withdrawal., Reminders, How To Pay Estimated Tax, Payment by Electronic Funds Withdrawal or Credit Card

Electronic reporting

Returns (see E-file)

Electronic reporting:

Tip statement from employees to employers, Electronic tip statement.

Eligible educational institution:

Education credits, Eligible educational institution.

Foreign schools, Eligible educational institution., Eligible educational institution.

Student loan interest deduction, Eligible educational institution.

Tuition and fees deduction, Eligible educational institution.

Eligible student:

Hope credit, Who Is an Eligible Student

Lifetime learning credit, Who Is an Eligible Student

Student loan interest deduction, Eligible student.

Tuition and fees deduction, Who Is an Eligible Student

Embezzlement:

Losses due to, Theft

Reporting embezzled funds, Illegal income.

Emergency medical service personnel:

Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty

Emotional distress damages, Emotional distress.

Employee benefits (see Fringe benefits) (see specific type of benefit (e.g., Health insurance, Life insurance, etc.))

Employee business expenses, 28. Car Expenses and Other Employee Business Expenses, Illustrated Example

Employee business expenses:

Commuting expenses, Commuting expenses.

Deductions for, Introduction, Who does not need to use this chapter.

Deductions for:

Form 2106 for deducting, Both self-employed and an employee.

Impairment-related work expenses, deduction for, Impairment-Related Work Expenses (Business or Medical), Impairment-related work expenses of disabled employees.

Meals (see Meal and lodging expenses)

Reimbursements, Expense allowances., Allowances and reimbursements., Reimbursement, allowance, or advance., Per Diem and Car Allowances, Reporting your expenses with a per diem or car allowance.

(see also Per diem)

Reimbursements:

Returning excess, Expense allowances., Returning Excess Reimbursements

Travel (see Travel and transportation expenses)

Work-related education, 29. Tax Benefits for Work-Related Education, Employees

Employee expenses:

Cellular telephone, Depreciation on Computers or Cellular Telephones

Home computer, Depreciation on Computers or Cellular Telephones, Depreciation on Home Computer

Miscellaneous, Unreimbursed Employee Expenses (Line 20)

Employees

Business expenses (see Employee business expenses)

Overseas employment (see Foreign employment)

Employees:, Fringe Benefits, De Minimis (Minimal) Benefits

(see also Fringe benefits)

Awards for service, Bonuses and awards.

Business expenses (see Employee business expenses)

Discounts for, effect on basis, Bargain purchases.

Form W-4 to be filled out when starting new job, New Form W-4.

Fringe benefits (see Fringe benefits)

Jury duty pay, Jury duty.

Employers, Amount of contribution.

(see also Payroll deductions)

Educational assistance from (see Educational assistance)

Overseas employment (see Foreign employment)

Employers:

E-file options, Through Employers and Financial Institutions

Educational assistance from (see Educational assistance)

Form W-4, having new employees fill out, New Form W-4.

Overseas employment (see Foreign employment)

Vehicles provided by, Employer-Provided Vehicles

Withholding rules, Rules Your Employer Must Follow

Employment

Taxes:

FICA withholding (see Withholding)

Employment taxes, Reminders, Household services., Employment Taxes for Household Employers

(see also Social security and Medicare taxes)

FICA withholding (see Withholding)

Employment:

Agency fees, Employment agency fees., Job Search Expenses

Résumé expenses, Résumé.

Taxes:, Social security and Medicare taxes paid by employer.

(see also Social security and Medicare taxes)

Household help (see Domestic help)

Tip income, You must use Form 1040 if any of the following apply.,

Employment::

Taxes:

Tip income, Why report tips to your employer?

Empowerment zone, Credits.

Endowment proceeds, Endowment Contract Proceeds

Energy assistance, Payments to reduce cost of winter energy.

Energy conservation:

Measures and modifications, Energy conservation measure.

Subsidies, Energy conservation subsidies.

Subsidies:

Exclusion as adjustment to basis, Exclusion of subsidies for energy conservation measures.

Utility rebates, Utility rebates.

Entertainers and musicians, Work Clothes and Uniforms

Entertainment expenses, Meals and Incidental Expenses, Entertainment Expenses

Entertainment expenses:

50% limit, 50% Limit

50% limit:

Figure 28-A summary of rules,

Allocation of costs, Separating costs., Separating expenses.

Business-related gifts vs., Gift or entertainment., Gift or entertainment.

Form 2106 or 2106-EZ, how to fill out, Meal and entertainment expenses.

Meal expenses included, A meal as a form of entertainment.

Proof of expenses, How To Prove Expenses

Proof of expenses:

Table 29-2 summary, Table 28-2. How To Prove Certain Business Expenses

Recordkeeping requirements, Recordkeeping

Reporting of, How To Report

Reporting of:

Table 29-3 showing forms to be used, Table 28-3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements

Taking turns paying for meals or entertainment, Taking turns paying for meals or entertainment.

Tickets:

Face-value as deductible amount, Entertainment.

Gift vs. entertainment deduction, Gift or entertainment., Gift or entertainment.

Equipment, Hauling tools or instruments.

(see also Tools)

Equipment:

Rental for rental property, Rental of equipment.

Equitable relief (see Innocent spouse relief)

Errors:

Address label, correction of, Correcting the label.

Depreciation, correcting amount on Form 1040X, Claiming the correct amount of depreciation.

Discovery after filing, need to amend return, What If I Made a Mistake?

Form 1099 showing incorrect amount, Incorrect amount shown on a Form 1099.

Form W-2c for corrected wage and tax statement, Form Not Correct

IRAs, failure to take required distribution, Request to excuse the tax.

Refunds, Interest on erroneous refund.

Escrow:

Taxes placed in, when deductible, Taxes placed in escrow.

Estate beneficiaries, Inherited Property, Inherited property.

(see also Inheritance)

IRAs (see Individual retirement arrangements (IRAs))

Estate beneficiaries:, Gifts and inheritances.

(see also Inheritance)

Consistent treatment of estate items, Reminders

Dividends received by, Beneficiary of an estate or trust.

IRAs (see Individual retirement arrangements (IRAs))

Losses of estate, Losses.

Receiving income from estate, Estate and trust income., Current income not required to be distributed.

Rollover restrictions, Rollover by surviving spouse.

Estate tax:

Deduction, Taxes and Fees You Cannot Deduct

Return, filing threshold, Reminders

Estates

Tax, Federal Estate Tax on Income in Respect of a Decedent (see Estate tax)

Survivor's annuity, Estate tax.

Estates:, Estate and trust income.

(see also Estate beneficiaries)

Income, Estate and trust income.

Investment interest, Partners, shareholders, and beneficiaries.

Estimated tax, 5. Tax Withholding and Estimated Tax, IRS can figure the penalty for you.

Estimated tax:

Amount to pay to avoid penalty, How much to pay to avoid a penalty.

Avoiding, Who Does Not Have To Pay Estimated Tax

Change in estimated tax, Change in estimated tax.

Credit for, Introduction, Credit for Withholding and Estimated Tax, Estimated Tax

Definition, Introduction

Divorced taxpayers, Divorced Taxpayers

Electronic funds withdrawal, Reminders, How To Pay Estimated Tax, Payment by Electronic Funds Withdrawal or Credit Card

Figuring amount of tax, How To Figure Estimated Tax

First period, no income subject to estimated tax in, No income subject to estimated tax during first period.

Fiscal year taxpayers, Fiscal year taxpayers.

Married taxpayers, Married taxpayers.

Name change, Name changed.

Not required, Estimated tax not required.

Overpayment applied to, Refunds

Payment-vouchers, How To Pay Estimated Tax, Using the Payment-Vouchers

Payments, Estimated tax payments., How To Pay Estimated Tax

Payments:

Figuring amount of each payment, How To Figure Each Payment

Schedule, When To Pay Estimated Tax, No income subject to estimated tax during first period.

When to start, When To Start

Who must make, Who Must Pay Estimated Tax?

Penalty for underpayment, Introduction, Underpayment penalty., Underpayment Penalty, Penalty for underpayment of estimated tax.

Penalty for underpayment:

IRS computation of, Form 2210, Underpayment Penalty

Pension payments, Withholding and estimated tax.

Safe harbor for higher income individuals, Reminders

Saturday, Sunday, holiday rule, Saturday, Sunday, holiday rule.

Separate returns, Separate Returns

Social security or railroad retirement benefits, Tax withholding and estimated tax.

State and local income taxes, deduction of, Estimated tax payments.

Unemployment compensation, Tax withholding.

Estimates:

Travel expenses, How To Prove Expenses

Excess benefits tax (see Section 72(m)(5))

Excess reimbursements:

Business expense reimbursements, Expense allowances., Returning Excess Reimbursements

Medical expenses, Excess reimbursement.

Medical expenses:

Excess algorithm (Figure 23-A), Reimbursement in a later year.

Excess withholding credit, What's New, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld

Excess withholding credit:

How to claim, How to claim the credit.

Joint returns, One employer.

Exchange students:

Expenses paid for, deductible when under agreement with qualified organization, Expenses Paid for Student Living With You

Exchanges, What Is a Sale or Trade?, How to report.

(see also Trade of property)

Exchanges:

Like-kind exchanges, Like-Kind Exchanges, Like-kind exchanges.

Partially nontaxable exchange, Partially nontaxable exchanges., Partly nontaxable exchange.

Tax-free:

Definition of, Nontaxable Exchanges

Holding period, determination of, Nontaxable trades.

Taxable exchange, defined, Taxable Exchanges

Excise taxes:, When Must You Withdraw IRA Assets? (Required Minimum Distributions)

(see also Penalties)

Basis to include, Cost Basis

Deductibility (Table 24-1),

IRAs for failure to take minimum distributions, When Must You Withdraw IRA Assets? (Required Minimum Distributions)

Roth IRAs, What If You Contribute Too Much?, Results of failed conversions.

Exclusions from gross income

Capital gains from home sale (see Sale of home)

Exclusions from gross income:

Accelerated death benefits, Accelerated Death Benefits, Accelerated Death Benefits

Annuities, Exclusion limit.

Canceled debt, Excluded debt.

Commuting benefits for employees, Exclusion limit.

De minimis benefits, De Minimis (Minimal) Benefits

Disability pensions of federal employees and military, Military and Government Disability Pensions, Conditions for exclusion.

Education Savings Bond Program, Interest on qualified savings bonds.

Educational assistance from employer, Educational Assistance

Elective deferrals, limit on exclusion, Elective deferrals.

Employee awards, Employee achievement award.

Energy conservation subsidies, Energy conservation subsidies., Utility rebates.

Foreign earned income, Reminders

Frozen deposit interest, Interest on frozen deposits.

Group-term life insurance, Entire cost excluded.

Holocaust victims restitution, Reminders, Holocaust victims restitution.

Long-term care insurance contracts, Long-Term Care Insurance Contracts, Limit on exclusion.

Parking fees, employer-provided, Transportation

Public safety officers who died or were killed in line of duty, death benefits, Reminders, Public Safety Officer Killed in the Line of Duty

Sale of home, Sale of home.

Scholarships, Scholarships and fellowships.

Strike benefits, Strike and lockout benefits.

Terrorist attack as cause of injury, disability payments, Reminders, Disability Pensions

Executors and administrators, Surviving Spouses, Executors, Administrators, and Legal Representatives

Executors and administrators:

Administrator defined, Administrator.

Duties, Duties

Duties:

Final return, Final Return for the Decedent

Notification of IRS, Notifying the IRS.

Election to file jointly may be revoked, Personal representative may revoke joint return election.

Executor defined, Executor.

Fees, reporting of, Executor, administrator, or personal representative of an estate.

Personal representative defined, Personal representative.

Related party transactions, Losses on sales or trades of property.

Exempt-interest dividends, Exempt-interest dividends.

Exempt-interest dividends:

Alternative minimum tax, Alternative minimum tax treatment.

Dividend reporting, Exempt-interest dividends.

Information-reporting requirement, Information reporting requirement.

Exemption amount:

2004 changes, What's New for 2004

Exemptions

Securities, tax-exempt (see Securities)

Exemptions:, Single persons., Exemptions for Dependents

(see also Dependents)

Final return for decedent, Exemptions

From withholding, Exemption From Withholding

Personal (see Personal exemption)

Phaseout, Special Rules, What's New for 2004, Phaseout of Exemptions

State or local government bonds, tax-exempt, Tax-exempt state and local government bonds.

Expatriates, Expatriates.

Expenses paid by another, Expenses paid by another.

Extension of time to file, Extensions of Time To File

Extension of time to file:

Additional extension, Form 2688, Extension beyond 4 months.

Additional extension, Form 2688:

Not approved, Extension not approved.

Notice of approval, Extension approved.

Automatic, Automatic Extension, When to file.

Citizens outside U.S., Individuals Outside the United States

E-file options, How to get the automatic extension.

Inclusion on return, When you file your return.

Extortion:

Losses due to, Theft

Eye surgery:

Deductibility as medical expense,

Eyeglasses:

As medical expense,

F

Failure to comply with tax laws (see Penalties)

Fair market value (FMV), Fair market value (FMV).

Fair market value (FMV):

Casualty loss, Decrease in Fair Market Value

Definition of, Fair market value (FMV).

Sales of property, Fair market value.

Stolen property, FMV of stolen property.

Fair rental price, Fair rental price.

Family, Child's earnings., Related Party Transactions, Step 3. Figuring the Child's Tax (Form 8615, Part III), Adopted child.

(see also Child tax credit)

(see also Children)

(see also Dependents)

(see also Related party transactions)

Adoption credit (see Adoption)

Care credit (see Child and dependent care credit)

Family:, Single persons., Dependency Tests, Child defined.

(see also Dependents)

Standard meal allowance not allowed if related to employer, Related to employer.

Farming:

Activity not for profit, Activity not for profit.

Canceled debt, treatment of, Excluded debt.

Patronage dividends, Patronage dividends.

Farmworkers:

Estimated tax, Aliens.

Withholding, Farmworkers.

Federal crime investigations or prosecutions:

Travel expenses, Exception for federal crime investigations or prosecutions.

Federal Employees' Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA).

Federal employees:

Accrued leave payment, Accrued leave payment.

Cost-of-living allowances, Government cost-of-living allowances.

Disability pensions, Military and Government Disability Pensions

Disability pensions:

Based on years of service, Pension based on years of service.

Exclusion, conditions for, Conditions for exclusion.

Terrorist attack, Terrorist attack or military action.

FECA payments, Federal Employees' Compensation Act (FECA).

Federal government

Employees (see Federal employees)

Federal government:

Charitable contributions to, Types of Qualified Organizations,

Federal income tax:

Interest on, not deductible, Personal Interest

Not deductible, Taxes and Fees You Cannot Deduct

Not deductible:

Deductibility (Table 24-1),

Federal judges:

Employer retirement plan coverage, Federal judges.

Fee-basis officials, State and local government officials paid on a fee basis., Officials Paid on a Fee Basis

Fee-basis officials:

Business expenses of, Special Rules

Work-related education expenses, Performing Artists and Fee-Basis Officials

Fees (see specific types of deductions and income)

Professional license, Professional Accreditation Fees

Fees, comprehensive/ bundled, Comprehensive or bundled fees., Comprehensive or bundled fees.

Fellowships (see Scholarships and fellowships)

Fertility enhancement procedures:

Deductibility as medical expense,

FICA withholding (see Social security and Medicare taxes) (see Withholding)

Fiduciaries, Surviving Spouses, Executors, Administrators, and Legal Representatives, Trustees' fees., Trustees' fees.

(see also Executors and administrators)

(see also Trustees)

Fiduciaries:, Executor., Administrator., Personal representative.

(see also Executors and administrators)

Notice to IRS, Notifying the IRS.

Prohibited transactions, Prohibited Transactions

Related party transactions, Losses on sales or trades of property.

Figures (see Tables and figures)

Figuring taxes and credits, Are Any of Your Benefits Taxable?, How Do You Figure the Deduction, How Do You Figure the Deduction, Figuring Your Tax, How to figure the credit if you did not work for a railroad.

(see also Worksheets)

Filing requirements, 1. Filing Information, Criminal Penalties

Electronic (see E-file)

Late filing penalties (see Penalties)

Unmarried persons (see Single taxpayers)

Filing requirements:, Married Filing Separately

(see also Married filing separately)

Calendar year filers, When Do I Have To File?

Citizens outside U.S., U.S. Citizens and Residents Living Outside the United States

Deceased taxpayer, When and where to file.

Dependents, Child's earnings.,

Estate tax return, filing threshold, Reminders

Extensions, Extensions of Time To File

Gross income levels (Table 1-1),

Individual taxpayers, Individuals—In General

Joint filing, Married Filing Jointly, Accounting period., Relief from joint liability., Married persons.

(see also Joint returns)

Most taxpayers (Table 1-1),

Other situations requiring filing (Table 1-3),

TeleFile, Using a Telephone (TeleFile)

When to file, When Do I Have To File?

Where to file, What's New, Where Do I File?

Who must file, What's New, Do I Have To File a Return?, Who Should File, Who must file the return?

Filing status, Filing status., 2. Filing Status, Death or birth.

Filing status:

Annulled marriages, Annulled marriages.

Change to, after time of filing, Amended Returns and Claims for Refund

Divorced taxpayers, Divorced persons.

Head of household, Head of household or qualifying widow(er) with dependent child., Head of Household

Head of household:

Qualifying person to file as, Qualifying Person

Joint returns, Married Filing Jointly

Married filing separately, Married Filing Separately

Surviving spouse, Head of household or qualifying widow(er) with dependent child.

Unmarried persons, Individuals—In General, Unmarried persons.

(see also Single taxpayers)

Final return for decedent, Final Return for the Decedent

Final return for decedent:

Archer MSA, Archer MSA

Business income, Business Income

Capital loss deduction on, Decedent's capital loss.

Credits, Credits, Tax withheld and estimated payments.

Estimated tax payments, Tax withheld and estimated payments.

Exemptions, Exemptions

Filing, Filing the return.

Income and deductions, determination of, Determining income and deductions.

Income and deductions, determination of:

Interest and dividends, Interest and Dividend Income (Forms 1099)

Itemized deductions, Itemized Deductions

Joint return, Joint return.

Losses, deduction for, Deduction for Losses

Medical expenses, Medical expenses., Decedent

Medicare Advantage MSA, Archer MSA

Partnership income, Partnership income.

Pension, unrecovered investment in, Unrecovered investment in pension.

Refund, file to claim, Filing to get a refund., Claiming a refund.

S corporation income, S corporation income.

Self-employment income, Self-employment income., Coverdell Education Savings Account (ESA)

Standard deduction, Standard Deduction, Decedent's final return.

Third party designee, Third party designee.

When and where to file, When and where to file.

Who must file, Who must file the return?

Who must sign, Signing the return.

Withheld tax, credit for, Tax withheld and estimated payments.

Finance charges:

Credit cards, retail installment contracts, etc., not deductible, Personal Interest

Financial institutions, Deposit in Insolvent or Bankrupt Financial Institution, When and How Can a Traditional IRA Be Set Up?

(see also Banks)

Financially disabled persons, Financially disabled.

Fines (see Penalties)

Deductibility, Fines or Penalties

Firefighters:

Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty

Volunteer firefighters:

Charitable contributions to, Examples.

IRAs, Volunteer firefighters.

Fires:

Arson, no casualty loss for, Nondeductible losses.

Casualty loss caused by, Deductible losses., Personal property.

First-time homebuyer credit:

District of Columbia, Credits.

First-year expensing (see Section 179 deductions)

Fiscal year, Accounting Periods, Fiscal year taxpayers., Fiscal Years

Fishermen:

Estimated tax, Aliens.

Indian fishing rights, Indian fishing rights.

Fleet operations:

Standard mileage rate not allowed, Standard mileage rate not allowed.

Flexible spending account or arrangement, , Long-term care services.

Floods, Disaster relief.

(see also Disaster relief)

Floods:

Casualty loss caused by, Deductible losses.

FMV (see Fair market value)

Food benefits:

Nutrition program for the elderly, Nutrition Program for the Elderly.

Foreclosure, Foreclosure or repossession., Mortgage ending early.

Foreign children:

Adoption credit, Foreign child.

Foreign employment, Employees of foreign governments or international organizations., Foreign Employer

Foreign employment:

Employment abroad, Employment abroad.

Pension plan contributions, Foreign employment contributions.

Social security and Medicare taxes, Social security and Medicare taxes.

U.S. citizen, U.S. citizen.

Waiver of alien status, Waiver of alien status.

Foreign governments, employees of, Employees of international organizations or foreign governments.

Foreign income taxes:

Deduction of, Foreign Income Taxes

Deduction of:

Form 1116 to claim credit, Foreign income taxes.

Schedule A or Form 1040 reporting, Foreign income taxes.

Definition of, Foreign taxes.

Foreign income:

Dividends, Reminder

Earned income exclusion, Reminders

Reporting of, Reminders

Sale of foreign property, Reminder

Foreign nationals (see Resident aliens)

Foreign organizations:

Charitable contributions to, Certain foreign charitable organizations., , Contributions to Nonqualified Organizations

Foreign schools, Eligible educational institution., Eligible educational institution.

Foreign Service, Members of the uniformed services or Foreign Service.

Foreign students, Foreign students' place of residence.

Foreign students:

Expenses paid for, deductible when under agreement with qualified organization, Expenses Paid for Student Living With You

Foreign tax credit, Foreign Tax Credit

Foreign tax credit:

Election not to file Form 1116, Election not to file Form 1116.

How to claim, How to claim the credit.

Limit on, Limit on the credit.

Forfeitures

Dependent care benefits, Forfeitures.

Forgiveness of debt (see Cancellation of debt)

Form 1040-ES(NR):

Estimated tax for nonresident aliens, Aliens.

Form 1040-ES:

Estimated tax, How To Figure Estimated Tax, Using the Payment-Vouchers

Form 1040:

Deceased taxpayer, Who must file the return?

Estimated tax payments, Estimated Tax

Foreign income taxes, deduction of, Foreign income taxes.

Gambling winnings, Form W-2G.

Overpayment offset against next year's tax, Crediting an Overpayment

Schedule A:

General sales taxes, deduction of, General sales tax deduction.

State and local income taxes, deduction of, State and local income taxes.

State benefit funds, mandatory contributions to, Contributions to state benefit funds.

Taxes, deduction of, Other taxes.

Schedule B:

Nominee distributions, How to report.

Schedule C:

Real estate or personal property taxes on property used in business, deduction of, Real estate taxes and personal property taxes.

Schedule E:

Real estate or personal property taxes on rental property, deduction of, Real estate taxes and personal property taxes.

Schedule F:

Real estate or personal property taxes on property used in business, deduction of, Real estate taxes and personal property taxes.

Self-employment tax, deduction of, Self-employment tax.

Form 1040A:

Estimated tax payments, Estimated Tax

Overpayment offset against next year's tax, Crediting an Overpayment

Schedule 1:

Nominee distributions, How to report.

Form 1040X:

Deceased taxpayer, Claiming a refund.

Form 1041:

Estate income tax return, Introduction

Form 1096, File Form 1099-B or Form 1099-S with the IRS.

Form 1099-B, File Form 1099-B or Form 1099-S with the IRS.

Form 1099-B:

Barter income, The 1099 Series

Form 1099-DIV:

Dividend income statement, How to report., The 1099 Series

Form 1099-G:

Government payments, The 1099 Series

Form 1099-INT, Form 1099-INT.

Form 1099-INT:

Interest income statement, Interest and Dividend Income (Forms 1099), How to report., The 1099 Series

Form 1099-MISC:

Miscellaneous income, The 1099 Series

Withheld state and local taxes, Withheld taxes.

Form 1099-OID:

Original issue discount, from issuer or broker, The 1099 Series

Form 1099-R:

Retirement plan distributions, The 1099 Series

Withheld state and local taxes shown on, Withheld taxes.

Form 1099-S, File Form 1099-B or Form 1099-S with the IRS.

Form 1099-S:

Real estate transactions proceeds, Form 1099-S.

Form 1116:

Foreign tax credit, Foreign income taxes.

Form 1310:

Statement of person claiming refund of deceased person, Introduction, Claiming a refund.

Form 2210:

Underpayment of estimated tax, IRS can figure the penalty for you.

Form 4810:

Prompt assessment request, Introduction

Form 56:

Fiduciary relationship notice, Introduction, Notifying the IRS.

Form 706:

Estate tax return, Introduction

Form 843:

Claim for refund and request for abatement, Claiming a refund.

Form RRB-1099:

Railroad retirement benefits, The 1099 Series

Form SSA-1099:

Social security benefits, The 1099 Series

Form W-2:

Employer-reported income statement, Withholding

Filing with return, Forms W-2 and W-2G.

Separate form from each employer, Form W-2

Withheld state and local taxes, Withheld taxes.

Form W-2c:

Corrected wage and tax statement, Form Not Correct

Form W-2G:

Withheld state and local taxes shown on, Withheld taxes.

Form W-4:

Employee withholding allowance certificate, New Form W-4.

Form W–2G:

Gambling winnings withholding statement, Form W-2G., Withholding, Form W-2G

Form W–4:

Employee withholding allowance certificate, Determining Amountof Tax Withheld Using Form W-4, Who Does Not Have To Pay Estimated Tax

Filling out form and worksheets, Completing Form W-4 and Worksheets

Form W–4P:

Pensions and annuities withholding certificate, More information.

Form W–4S:

Sick pay withholding request, Form W-4S.

Form W–4V:

Unemployment compensation, voluntary withholding request, Unemployment Compensation, Federal Payments

Form(s) 1099:

Taxable income report, Interest and Dividend Income (Forms 1099), Backup Withholding, The 1099 Series

Form:

1040, Form 1040., Form 1040 Line Entries

Adjusted gross income, Adjusted gross income (AGI).

Adoption expenses, How to claim the credit.

Alternative minimum tax, Credit for prior year tax, How to claim the credit.

Electric vehicle credit, How to claim the credit.

Excess withholding credit, How to claim the credit.

Foreign tax credit, How to claim the credit.

Health insurance credit, How To Claim the Credit

Mortgage interest credit, How to claim the credit.

Schedule A:, Mortgage interest deduction, Reduced home mortgage interest deduction.

Undistributed long-term capital gains, Credit for Tax on Undistributed Capital Gain

1040, Schedule A

Charitable contributions, Gift To Reduce Debt Held by the Public, Form 1040 required., How To Report

Employee business expense deduction, After you complete the form., 2. Limit on miscellaneous itemized deductions.

Federal employees buying back sick leave, Federal Employees' Compensation Act (FECA).

Gifts, deduction of, Gifts.

Home mortgage interest deduction, Home Mortgage Interest

Investment expenses deduction, Investment expenses.

Investment interest deduction, Investment interest.

Itemized deduction limit, When to itemize.

Loss of deposits due to bank's insolvency or bankruptcy cause, How to report.

Medical and dental expenses, What Tax Form Do You Use?

Outplacement services, deduction, Outplacement services.

Travel expenses, deduction of, Allowance less than or equal to the federal rate.

Unearned commission, deduction for repayment of, Advance commissions and other earnings.

1040, Schedule B

Dividends, Reminders, Form 1040.

Interest income, Reminders

1040, Schedule C

Barter income, Bartering

Child care providers, Child care providers.

Corporate director fees, Corporate director.

Forgiveness of debts, Canceled Debts

Foster-care providers, Reporting taxable payments.

Kickbacks, Kickbacks.

Notary fees, Notary public.

Oil, gas, or mineral interest royalties, Royalties

Rental income and expenses, How To Report Rental Income and Expenses, Reporting business income and expenses.

Statutory employees, Statutory employees.

Work-related education expenses, Self-Employed Persons

1040, Schedule C-EZ

Child care providers, Child care providers.

Corporate director fees, Corporate director.

Foster-care providers, Reporting taxable payments.

Kickbacks, Kickbacks.

Notary fees, Notary public.

Oil, gas, or mineral interest royalties, Royalties

Rental income and expenses, How To Report Rental Income and Expenses, Reporting business income and expenses.

Statutory employees, Statutory employees.

Work-related education expenses, Self-Employed Persons

1040, Schedule D

Business property sales, How to report.

Capital gains or losses, Reporting Capital Gains and Losses, Capital gain distributions only.

Child's capital gain distributions, Child's capital gain distributions.

Fractional shares, sale of, Fractional shares.

Home sale, capital gains from,

Nonbusiness bad debts, loss of deposits due to bank's insolvency or bankruptcy, How to report.

Reconciling Form 1099 with, Reconciling Forms 1099 with Schedule D.

Sale expenses, Sale expenses.

Undistributed long-term capital gains, Long-term gains and losses.

Worthless securities, How to report loss.

1040, Schedule E

Income-producing property, deduction of interest on loan for, Income-producing rental or royalty interest.

Rental income and expenses, How To Report Rental Income and Expenses, Form 1098., Schedule E (Form 1040)

Royalties, Royalties

1040, Schedule F

Self-employed persons, Both self-employed and an employee.

Work-related education expenses, Self-Employed Persons

1040, Schedule SE, Self-Employed Persons, Housing.

1040-V:

Payment voucher, Check or money order.

1040:

Address label, Peel-Off Address Label

Alaska Permanent Fund dividends, Alaska Permanent Fund dividends.

Alien taxpayer identification numbers, Born and died in 2004.

Armed forces' retirement pay, Military retirement pay.

Attachments to, Form 1040.

Capital gains, How To Report Dividend Income

Charitable contributions, deduction to be itemized, Form 1040 required.

Check mailed with, Check or money order.

Child's capital gain distributions, Child's capital gain distributions.

Clergy pension, Pension.

Deduction for alimony paid, How To Deduct Alimony Paid

Disability retirement pay, How to report.

Dividends, How To Report Dividend Income, Form 1040.

Educator expenses, How the deduction is claimed.

Executors' and administrators' fees, Executor, administrator, or personal representative of an estate.

FECA benefits, Railroad sick pay.

Insurance distributions, Dividends on insurance policies.

IRAs, Reporting taxable distributions on your return., Filing a tax return.

Personal exemption, How you claim an exemption.

Presidential Election Campaign Fund, Presidential Election Campaign Fund

Railroad retirement benefits, reporting on, Reporting on Form 1040.

Recapture of alimony, Including the recapture in income.

Reporting of alimony received, How To Report Alimony Received

Reporting taxes on tips not reported to employer, Reporting social security and Medicare taxes on tips not reported to your employer.

Reporting uncollected taxes on tips, Reporting uncollected social security and Medicare taxes on tips.

Social security benefits, reporting on, Reporting on Form 1040.

Social Security Numbers, Phaseout of Exemptions

Student loan interest deduction, How Do You Figure the Deduction

Tip income reporting, How to report tips.

Use of, Form 1040, Single, Married Filing Jointly, How to file., How to file.

Wages and salary reporting, Form W-2.

Workers' compensation, Return to work.

1040A, Form 1040A., Form 1040A Line Entries

Adjusted gross income, Adjusted gross income (AGI).

Adoption expenses, How to claim the credit.

Excess withholding credit, How to claim the credit.

1040A, Schedule 1

Dividends, Reminders, Form 1040A.

1040A:

Address label, Peel-Off Address Label

Alaska Permanent Fund dividends, Alaska Permanent Fund dividends.

Alien taxpayer identification numbers, Born and died in 2004.

Armed forces' retirement pay, Military retirement pay.

Attachments to return, Form 1040A.

Capital gains, How To Report Dividend Income

Clergy pension, Pension.

Disability retirement pay, How to report.

Dividend income reporting, Form 1040A.

Dividends, How To Report Dividend Income

Educator expenses, How the deduction is claimed.

FECA benefits, Railroad sick pay.

Insurance distributions, Dividends on insurance policies.

IRA distributions, Reporting taxable distributions on your return.

Personal exemption, How you claim an exemption.

Presidential Election Campaign Fund, Presidential Election Campaign Fund

Railroad retirement benefits, reporting on, Reporting on Form 1040A.

Rehabilitative program payments, Rehabilitative program payments.

Reporting pay, Form W-2.

Social security benefits, reporting on, Reporting on Form 1040A.

Social Security Numbers, Phaseout of Exemptions

Student loan interest deduction, How Do You Figure the Deduction

Tip income reporting, How to report tips.

Use of, Form 1040A, Single, Married Filing Jointly, How to file., How to file.

Workers' compensation, Return to work.

1040EZ, Form 1040EZ Line Entries

1040EZ:

Address label, Peel-Off Address Label

Alaska Permanent Fund dividends, Alaska Permanent Fund dividends.

FECA benefits, Railroad sick pay.

Interest up to $1,500, Reminders

No attachments, Form 1040EZ.

Personal exemption, How you claim an exemption.

Presidential Election Campaign Fund, Presidential Election Campaign Fund

Reporting pay, Form W-2.

Tip income reporting, How to report tips.

Use of, Form 1040EZ, Single, Married Filing Jointly

Workers' compensation, Return to work.

1040NR-EZ:

Nonresident alien easy return, Nonresident alien.

1040NR:

Nonresident alien return, Nonresident alien.

1040X

Child's return, Parent's return information not known timely.

1040X:

Amended individual return, Form 1040X.

Annulled marriages, Annulled marriages.

Bad debts, claim for refund, Filing a claim for refund.

Change of filing status, Joint Return After Separate Returns

Check mailed with, Check or money order.

Completing, Completing Form 1040X.

Depreciation| Correcting amount of, Claiming the correct amount of depreciation.

Filing, Filing Form 1040X.

Itemized deduction, change to standard deduction, Changing your mind.

Standard deduction, change to itemized deductions, Changing your mind.

Worthless securities, claim for refund, Filing a claim for refund.

1065:

Partnership income, Schedule K-1 (Form 1065).

1098-E, How Do You Figure the Deduction

1098-T, Comprehensive or bundled fees., Form 1098-T., Form 1098-T.

1098:

More than one borrower (not spouse), reporting of mortgage interest deduction by attaching of, More than one borrower.

Mortgage interest overpaid in earlier year, Refunds of interest.

Mortgage interest statement, Form 1098., Mortgage interest refund., Mortgage Interest Statement

Points reported on, Mortgage Interest Statement

Prepaid interest reported on, Prepaid interest on Form 1098.

Refund of interest reported on, Refunded interest.

1099-A:

Acquisition or abandonment of secured property, Form 1099-A and Form 1099-C.

1099-B:

Barter income, Form 1099-B from barter exchange.

Broker to report sales of stocks, bonds, or commodities, Sales and Trades, Form 1099-B transactions.

1099-C:

Cancellation of debt, Form 1099-C., Form 1099-A and Form 1099-C.

1099-DIV:

Dividend income statement, Stock you chose to include in income., Form 1099-DIV., Form 1099-DIV.

Return of capital, Nondividend Distributions

1099-G:

State income tax refund, State income tax refund.

1099-INT, Form 1099-INT.

1099-MISC:

Brokers receiving dividends, Form 1099-MISC.

Nonemployee compensation, Nonemployee compensation.

1099-OID, Form 1099-OID.

1099-R, Form 1099-INT for U.S. savings bonds interest.

1099-R:

Early distributions of pension funds, Special Additional Taxes, Exceptions to tax.

IRA distributions, Distributions reported on Form 1099-R., Form 5329 not required.

Life insurance policy surrendered for cash, Surrender of policy for cash.

Retirement plan distributions, Form W-2.

1099-S:

Real estate transactions proceeds, Form 1099-S., Form 1099-S transactions.

1099:

Taxable income report, Form 1099., Reminder

1116

Foreign tax credit, How to claim the credit.

1120S:

S corporation income, Schedule K-1 (Form 1120S).

2106-EZ:

Business-related expenses, Reporting your expenses under a nonaccountable plan.

Performing artists, Where to report.

Work-related education expenses, Form 2106 or 2106-EZ.

2106:

Business-related expenses, Both self-employed and an employee., Employees., Reporting your expenses under a nonaccountable plan.

Performing artists, Where to report.

Travel expenses, Allowance less than or equal to the federal rate., Allowance more than the federal rate.

Work-related education expenses, Form 2106 or 2106-EZ.

2119:

Postponement of gain from sale of home, Adjusted Basis

2439

Notice to shareholder on undistributed long-term capital gains, Credit for Tax on Undistributed Capital Gain

2439:

Notice to shareholder on undistributed long-term capital gains, Undistributed capital gains of mutual funds and REITs.

2441, Form 1040.

2555, Rule 5. You Cannot File Form 2555 or Form 2555-EZ

2555-EZ, Rule 5. You Cannot File Form 2555 or Form 2555-EZ

2688:

Additional extension of time to file, Extension beyond 4 months.

2848:

Power of attorney and declaration of representative, Power of attorney., Other reasons spouse cannot sign.

3115, Change from method 2.

3800:

General business credit, Exceptions for special types of refunds.

3903:

Moving expenses, Form 3903.

4029, Approved Form 4361 or Form 4029

4070:

Reporting tips to employer, How to report.

4070A:

Daily record of tips, How to keep a daily tip record.

4137:

Social security and Medicare taxes on tips not reported to employer, Reporting social security and Medicare taxes on tips not reported to your employer.

4361, Approved Form 4361 or Form 4029

4506-T

Tax return transcript request, Transcript of tax return.

4506:

Copy of tax return request, Copies of returns.

4562:

Depreciation of rental property, Depreciation

4684:

Bank deposit, loss due to bank's insolvency or bankruptcy, How to report.

Casualty or theft loss, Forms to file., How To Report Gains and Losses

4797:

Sales of business property, How to report.,

Small business stock losses, Losses on Section 1244 (Small Business) Stock

4868, E-file options., No SSN.

4868:

Automatic extension of time to file, E-file options., No SSN.

Filing electronic form, E-file using your personal computer or a tax professional.

Filing paper form, Filing a paper Form 4868.

4952:

Investment interest expense deduction, Form 4952

Net capital gain, election to include as investment income, Choosing to include net capital gain.

4972:

Lump-sum distributions, Lump-Sum Distributions

5329:

Early distributions of sheltered funds, Special Additional Taxes, Exceptions to tax.

Required minimum distributions, failure to take, Form 5329., Request to excuse the tax., Reporting Additional Taxes, Not filing a tax return., Form 5329 not required.

6251, More information.

Alternative minimum tax, Alternative minimum tax.

6252:

Installment sale income, Installment sale.

8271:

Investor report of tax shelter registration number, Failure to furnish tax shelter registration number.

8275-R:

Regulation disclosure statement, Disclosure statement.

8275:

Disclosure statement, Disclosure statement.

8283:

Charitable noncash contribution of more than $500 value, How To Report

8332, Child of Divorced or Separated Parents

8332:

Written declaration releasing child exemption to noncustodial parent, Written declaration., Divorce decree or separation agreement made after 1984.

8379:

Injured spouse claim, Joint return and injured spouse.

8396

Mortgage interest credit, How to claim the credit., Reduced home mortgage interest deduction.

8396:

Mortgage interest credit, Mortgage interest credit.

843

Claim for refund and request for abatement, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld

8453-OL:

Address label, Peel-Off Address Label

E-file, for signature requirement, Forms 8453 and 8453-OL.

8453:

Address label, Peel-Off Address Label

E-file, for signature requirement, Forms 8453 and 8453-OL.

8582:

Passive activity gains or losses, Limits on passive activity deductions and credits., Passive activity gains and losses.

8606:

IRA contributions, Nondeductible, Reminders, Form 8606., Form 8606.

IRA contributions, Recharacterization of, Reporting a recharacterization.

8615, Tax on investment income of a child under age 14.

Children under age 14 with more than $1,600 of investment income, Tax for Children Under Age 14 Who Have Investment Income of More Than $1,600,

Net investment income, Step 1. Figuring the Child's Net Investment Income (Form 8615, Part I)

Parental information, Providing Parental Information (Form 8615, lines A–C), Parent with different tax year., Parent's return information not known timely.

Sample completed form, Illustrated Example

8615:

Children under age 14 with more than $1,600 of investment income, Tax on investment income of a child under age 14.

Form 1040A may be used when filing, You can use Form 1040A if all of the following apply.

8801

Alternative minimum tax, How to claim the credit.

8812

Additional child tax credit, How to claim the additional child tax credit.

8814, Tax on investment income of a child under age 14.

Additional tax, figuring of, Figuring Additional Tax

Calculation of child's income, Figuring Child's Income

Capital gains distributions, Capital gain distributions and qualified dividends.

Parents' election to report child's interest and dividends, How to make the election.

Reduced deductions or credits, Reduced deductions or credits.

Sample form, Illustrated Example

8814:

Parents' election to report child's interest and dividends, Tax on investment income of a child under age 14., Investment income of child reported on parent's return.

8815, Form 8815.

8818, Education Savings Bond Program

8822:

Change of address, Change of Address

8824:

Like-kind exchanges, How to report.

8828:

Recapture of federal mortgage subsidy, How to figure and report the recapture.

8834

Electric vehicle credit, How to claim the credit.

8839

Qualified adoption expenses, How to claim the credit.

8839:

Qualified adoption expenses, Adoption Assistance

8853:

Accelerated death benefits, Form 8853.

Archer MSAs and long-term care insurance contracts, Archer MSA contributions.

8857:

Innocent spouse relief, Relief from joint liability.

8862, If Improper Claim Made in Prior Year

8863, Claiming the Credit, Claiming the Credit

Completed sample, Illustrated Example

8874:

New markets credit, filing requirements (Table 1-3),

8879:

Authorization for E-file provider to use self-selected PIN, Using an Authorized IRS e-file Provider

8880, How to figure and report the credit.

8885

Health insurance credit, How To Claim the Credit

9465:

Installment agreement request, Installment Agreement

Requiring Form 1040 to be used when filing, You must use Form 1040 if any of the following apply.

RRB-1042S:

Railroad retirement benefits for nonresident aliens, Introduction

RRB-1099:

Railroad retirement benefits, Introduction

SS-5, Getting an SSN.

SS-5:

Social security number request, No social security number.

Social Security Number request, No SSN.

SSA-1042S:

Social security benefits for nonresident aliens, Introduction

SSA-1099:

Social security benefits, Introduction

W-10, Getting the information.

W-2:

Box 12 with code L, Who does not need to use this chapter., Allowance more than the federal rate., Reimbursements.

Election precinct officials' fees, Election precinct official.

Employer retirement plan participation indicated, Are You Covered by an Employer Plan?

Employer-reported income statement, Form W-2., Form W-2., Reminder, Form W-2., Back pay awards., Accrued leave payment., Restricted Property, Stock you chose to include in income.

Fringe benefits, Form W-2., Long-term care coverage., Archer MSA contributions., Adoption Assistance

Recordkeeping, What Records Should I Keep?

Reimbursements reported as part of income, Who does not need to use this chapter., Reimbursement for personal expenses., Employee meets accountable plan rules., Per diem allowance more than federal rate., Reporting your expenses under a nonaccountable plan.

Statutory employees, Statutory employees.

Uncollected taxes, Giving your employer money for taxes.

W-2G:

Gambling winnings withholding statement, Form W-2G.

W-4P:

Rollover distributions, election not to have tax withheld, Withholding and estimated tax.

W-4V

Voluntary withholding request, Tax withholding.

W-5, Advance Earned Income Credit

W-7:

Individual taxpayer identification number request, Born and died in 2004.

W-7A:

Adoption taxpayer identification number request, Adoption taxpayer identification number (ATIN)., Taxpayer identification numbers for aliens.

W-9:

TIN of home seller and purchaser, Home mortgage interest and points.

Forms, What's New

(see also Tax returns)

Forms:

8836, What's New

W-5, How To Get Advance Payments for 2005

Foster care:

Adoption as motive for, no charitable deduction, Foster parents.

Care providers' payments, Foster-care providers.

Charitable deduction for nonprofit care, Foster parents.

Child tax credit, Qualifying Child

Dependency exemption for:

Member of household test, Foster child.

Support test, Foster care payments and expenses.

Difficulty-of-care payments, Difficulty-of-care payments.

Emergency foster care, maintaining space in home for, Maintaining space in home.

Expenses unreimbursed and not deductible as charitable contributions, Foster parents.

Foster child:

Earned Income Credit, Eligible foster child.

Foster Grandparent Program, National Senior Services Corps programs.

Found property, Found property.

Fractional shares:

Payment for, Fractional shares.

Fraternal societies:

Charitable contributions to, Types of Qualified Organizations

Dues, no charitable deduction, , Contributions From Which You Benefit

Fraud:

Losses due to, Theft

Penalties, Fraud., Penalties

Reporting anonymously to IRS, Reminders

Free tax services, How To Get Tax Help

Freight:

Basis to include, Cost Basis

Fringe benefits:

Accident and health insurance, Accident or Health Plan

Accounting period, Accounting period.

Adoption, employer assistance, Adoption Assistance

Archer MSA contributions, Archer MSA contributions.

De minimis benefits, De Minimis (Minimal) Benefits

Education assistance, Educational Assistance

Employer-provided vehicles, Employer-Provided Vehicles

Form W-2, Form W-2.

Group-term life insurance premiums, Group-Term Life Insurance

Holiday gifts, Holiday gifts.

Retirement planning services, Retirement Planning Services

Taxable income, Fringe Benefits

Transportation, Transportation

Withholding, Taxable Fringe Benefits

Frozen deposits:

Interest on, Interest on frozen deposits.

IRA rollover period extension, Extension of rollover period.

Fuels:

Clean-fuel vehicles, Deduction for clean-fuel vehicle and refueling property.

Full-time student

Child and dependent care credit, Full-time student.

Fund-raising events:

Charitable contributions, amount deductible, Contributions From Which You Benefit

Rental of dwelling unit used as home, Donation of use of property.

Funerals:

Clergy, payment for, Clergy

Expenses, Do Not Include in Total Support, List of Nondeductible Expenses

Expenses:

Contributions to cover, not deductible as charitable donations, Contributions to Individuals

Not deductible,

Future interests:

Definition of, Future interest.

Tangible personal property, charitable deduction for, Future interests in tangible personal property.

G

Gains and losses, You can use Form 1040A if all of the following apply., Special Rules, 17. Reporting Gains and Losses

(see also Capital gains)

(see also Capital gains or losses)

(see also Capital losses)

Gains and losses:

Casualty (see Casualty losses)

Claim for refund for loss, Exceptions for special types of refunds.

Collectibles, Investment interest deducted.

Financial institution's bankruptcy causing deductible loss, Loss on Deposits

Financial institution's bankruptcy causing deductible loss:

Reporting of, Loss on deposits.

Gambling, Gambling Losses Up to the Amount of Gambling Winnings (see Gambling winnings and losses)

Hobby losses, Hobby losses.

Ordinary gain and loss, Capital or Ordinary Gain or Loss

Ordinary gain and loss:

Bank deposit, loss due to bank's insolvency or bankruptcy, Casualty loss or ordinary loss.

Ordinary loss, Capital or Ordinary Gain or Loss

Ordinary loss:

Bank deposit, loss due to bank's insolvency or bankruptcy, Ordinary loss or casualty loss.

Passive activity, Rental activity losses., Passive Activity Limits, Passive activity gains and losses.

(see also Passive activity)

Related party sale or trade of depreciable property, Gain on sale or trade of depreciable property.

Short-term, Capital Gains and Losses, Short-term gains and losses.

Short-term:

Priority in deducting, Use short-term losses first.

Sale or trade of property held 1 year or less, Long term or short term.

Theft (see Theft losses)

Total net gain, Total net gain or loss.

Gambling winnings and losses, Gambling winnings., Gambling Losses Up to the Amount of Gambling Winnings

Gambling winnings and losses:

Form 1040, Form W-2G.

Withholding, Gambling Winnings, Form W-2G

Gaming Industry Tip Compliance Agreement Program, Tip Rate Determination and Education Program

Garbage pickup:

Deductibility (Table 24-1),

Garnishment and attachment, Garnisheed wages.

Gas royalties, Oil, gas, and minerals.

Gems:

As capital assets, Capital Assets and Noncapital Assets

IRA prohibited transactions in, Collectibles.

General business credit, Credits.

General Rule (see Annuities)

General sales taxes:

deduction of:, General Sales Taxes

Deduction of:

Schedule A (Form 1040), General sales tax deduction.

GI Bill:

Support test for dependents, Tuition payments and allowances under the GI Bill.

Gift taxes:

Not deductible, Taxes and Fees You Cannot Deduct

Gifts:

$25 limit on business-related expenses, $25 limit.

$4 or less for business-related expenses, Exceptions.

Adjusted basis for, Property Received as a Gift

Business-related expenses, Gift or entertainment., Gift Expenses, Gift or entertainment.

Children, income from property given to, Income from property received as a gift.

Disaster victims receiving cash gifts, Cash gifts.

Holding period, determination of, Property received as a gift.

Holiday gifts, Holiday gifts.

Incidental costs of business-related expenses, Incidental costs.

Not taxed, Gifts and inheritances., Gifts and inheritances.

Proof of expenses (Table 29-2 summary), Table 28-2. How To Prove Certain Business Expenses

Recordkeeping requirements, Recordkeeping

Reporting of expenses, Gifts.

Reporting of expenses:

Table 29-3 showing forms to be used, Table 28-3. Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements

Right to income in respect of decedent, Giving your right to income as a gift.

Schedule A (Form 1040) for deduction, Gifts.

To reduce the public debt, Gift To Reduce Debt Held by the Public

Girl Scouts:

Charitable contributions to, Examples.,

Glasses:

As medical expense,

Gold and silver:

As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc.

Capital gains or losses from sale or trade of, Investment interest deducted.

IRA investments in, Exception.

Golden parachute payments:

Tax on, Other taxes.

Golf clubs (see Country clubs)

Goodwill Industries (see Charitable contributions)

Government employees

Federal (see Federal employees)

State (see State or local governments)

Graduate school, Qualified Education Expenses

(see also Educational assistance)

Tuition deduction (see Tuition)

Grants (see Scholarships and fellowships)

Grants, disaster relief, Disaster relief grants.

Gratuities (see Tip income)

Gross income:

Adjustments other than on Form 1040A, Form 1040 to be used, You must use Form 1040 if any of the following apply.

Age, higher filing threshold after 65, Age.

Defined, Gross income., Gross income defined.

Defined:

Filing requirements (Table 1-1),

Dependency exemption, test for, Gross Income Test

Dependent filing requirements (Table 1-2),

Rental income, Rental Income

Group-term life insurance:

Accidental death benefits, Accidental death benefits.

Definition, Group-term life insurance.

Exclusion from income, Entire cost excluded.

Exclusion from income:

Limitation on, Group-Term Life Insurance

Permanent benefits, Permanent benefits.

Taxable cost, calculation of, Figuring the taxable cost.

Uncollected social security/Medicare taxes, You must use Form 1040 if any of the following apply.

Uncollected social security/Medicare taxes:

Reporting of (Table 1-3),

Uncollected tax, Other taxes.

Guam:

Income from, Individuals With Income From U.S. Possessions

Guide dogs:

Deductibility as medical expense,

H

H.R. 10 plans, Qualified plans for self-employed individuals.

Handicapped persons (see Disabilities, persons with)

Hardship distributions, Hardship distributions.

Hawaii:

Standard meal allowance, Standard meal allowance for areas outside the continental United States.

Head of household, Head of household or qualifying widow(er) with dependent child., Head of Household

Head of household:

Cost of keeping up home, Keeping Up a Home

Cost of keeping up home:

Worksheet,

Filing requirements (Table 1-1), How to file.

How to file, How to file.

Kidnapped child, Kidnapped child.

Qualifying person to file as, Qualifying Person

Qualifying person to file as:

Summary (Table 2-1), Table 2-1. Who Is a Qualifying Person for Filing as Head of Household? 1

Qualifying surviving spouse with dependent child, Qualifying Widow(er) With Dependent Child

Health coverage tax credit, Who Should File, Health Coverage Tax Credit

Health insurance credit, Reminders

Health insurance:, Accident or Health Plan

(see also Accident insurance)

Auto insurance policy covering, not deductible as medical expense,

Premiums:

Credit for workers displaced by foreign trade or receiving pension from PBGC, Reminders

Deductible as medical expense,

Dependents, Medical insurance premiums.

Self-employed persons, deductible expenses, Health Insurance Costs for Self-Employed Persons

Reimbursement, Insurance Reimbursement

Health savings account,

Health Spa, Health Spa Expenses

Health:

Flexible spending arrangement, Health flexible spending arrangement (health FSA).

Reimbursement arrangement, Health reimbursement arrangement (HRA).

Savings account, What's New

Savings accounts, What's New

Hearing aids:

As medical expense,

Hedging transactions, Capital Assets and Noncapital Assets

Help (see Tax help)

High income taxpayers:

Estimated tax, Special rules for farmers, fishermen, and higher income taxpayers.

High-low rate method to compute per diem, High-low rate.

Higher education (see Colleges and universities)

Hobbies, Hobby Expenses

Hobbies:

Activity not for profit, Activity not for profit.

Losses, Hobby losses.

Holding period:

Determination of, Holding Period

Holiday gifts, Holiday gifts.

Holiday, deadline falling on, Saturday, Sunday, holiday rule.

Holocaust victims restitution, Reminders, Holocaust victims restitution.

Home, Personal Use of Dwelling Unit (Including Vacation Home), Dwelling Unit Used as Home, Examples, How To Divide Expenses, 19. Moving Expenses

(see also Moving expenses)

(see also Vacation homes)

Damage to (see Casualty losses)

Points, Points on home mortgage.

Home equity loans:

Car purchased by, Interest on car loans.

Interest deduction, Home Mortgage Interest, Fully deductible interest.

Proceeds invested in tax-exempt securities, interest not deductible, Mortgage proceeds invested in tax-exempt securities.

Home improvement loans, Home improvement loan.

Home office:

Capital gains exclusion, Business Use or Rental of Home

Travel to another work location, Office in the home.

Home schooling:

Expenses not deductible, Qualified expenses.

Home:, Home Mortgage Interest, Fully deductible interest., Refinancing., 27. Nonbusiness Casualty and Theft Losses

(see also Casualty losses)

(see also Mortgages)

(see also Refinancing)

Abandonment of, Abandonment.

Acquisition debt, Fully deductible interest.

(see also Mortgages)

As capital asset, Capital Assets and Noncapital Assets

Basis (see Sale of home)

Business use of, Home Office

Closing costs, Settlement fees or closing costs.

Cost of keeping up, Keeping Up a Home

Cost of keeping up:

Worksheet,

Foreclosure, Foreclosure or repossession.

Improvements:

For medical care, deductibility,

Loans for, Home improvement loan.

Jointly owned, Home jointly owned.

Jointly owned:

Mortgage payments as alimony, Payments for jointly-owned home.

Separate residences in and alimony payments, Spouses cannot be members of the same household.

Taxes and insurance premiums as alimony, Taxes and insurance.

Main home, defined, Main Home

Office, Home Office

Possession before final settlement, rent not deductible as interest, Rental payments.

Repossession, Foreclosure or repossession.

Security system, Home Security System

Settlement fees, Settlement fees or closing costs.

Tax home, determination for travel-related business expenses, Tax Home

Tenants in common, taxes and insurance premiums as alimony, Taxes and insurance.

Homeowners' associations:

Charges, Homeowners' association charges.

Charges:

Deductibility (Table 24-1),

Charitable contributions to, , Contributions to Nonqualified Organizations

Homeworkers:

Deduction of expenses, Statutory employees.

Hope credit

Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI).

Hope credit:, Information for Only the Hope Credit

Can you claim (Figure 37-A), When Must the Credit Be Repaid (Recaptured)

Claiming the credit, Claiming the Credit

Comparison with lifetime learning chart (Table 37-1),

Eligible student, Who Is an Eligible Student

Figuring the credit, Figuring the Credit

Married filing separately, Special Rules, Who Cannot Claim a Credit

Tuition deduction and, Who Cannot Take the Deduction, No Double Benefit Allowed

Hospitals:

Charitable contributions to nonprofits, Examples.,

Charitable contributions to nonprofits:

50% limit on deduction, 50% limit organizations.

Meals and lodging provided for patients, deductibility,

Payments for services for specific patient, not deductible as charitable contributions, Contributions to Individuals

Services fees, deductibility of medical expense,

Hotels:

Club dues:

Not entertainment expenses, Club dues and membership fees.

Not considered dwelling units, Dwelling unit.

Household employees, Employment Taxes for Household Employers

Household furnishings

Antiques (see Collectibles)

Household furnishings:

As capital assets, Capital Assets and Noncapital Assets

Household members, Head of household or qualifying widow(er) with dependent child., Head of Household, Member of Household or Relationship Test

(see also Head of household)

Household members:

Adoption, Adoption.

Alimony payments, spouses cannot be members of same household, Spouses cannot be members of the same household.

Cousin, Cousin.

Death or birth, Death or birth.

Foster child, Foster child.

Joint return, Joint return.

Local law violated, Local law violated.

Relatives who do not have to live with you, Relatives who do not have to live with you.

Temporary absences, Temporary absences.

Household services, Care of a Qualifying Person, Household services.

Household workers (see Domestic help)

Housing, Keeping Up a Home, Personal Use of Dwelling Unit (Including Vacation Home), Dwelling Unit Used as Home, Examples, How To Divide Expenses

(see also Home)

(see also Vacation homes)

Cooperative (see Cooperative housing)

Rental property (see Rental income and expenses)

Housing:

Alimony payments made to cover, Payments to a third party.

Clergy, Clergy

Military quarters allotments, Tax-exempt military quarters allowances.

Hurricanes, Disaster relief.

(see also Disaster relief)

Hurricanes:

Casualty loss due to, Deductible losses.

I

Icons, use of, Icons., Introduction

Identification number, qualifying person, Taxpayer identification number.

Illegal income:

Reporting of, Illegal income.

Impairment (see Disabilities, persons with)

Impairment-related work expenses, Impairment-Related Work Expenses, Impairment-related work expenses., Impairment-Related Work Expenses

Improvements

Rental property (see Rental income and expenses)

Improvements:

Real estate, adjustments to basis for, Improvements.

Incidental expenses:

Business-related gifts, Incidental costs.

Travel-related, Incidental expenses.

Income, 6. Wages, Salaries, and Other Earnings, Reimbursement for medical care.

Rental (see Rental income and expenses)

Tips (see Tip income)

Income aid payment, Repayment of Income Aid Payment

Income in respect of decedent (IRD), Income in Respect of the Decedent

Income in respect of decedent (IRD):

Archer MSA, Archer MSA.

Coverdell ESA, Coverdell education savings account (ESA).

Fair market value, Fair market value (FMV).

Giving right to income, Giving your right to income as a gift.

How to report, How To Report

Inherited IRAs:

Roth, Roth IRAs.

Traditional, Inherited IRAs.

Other income, Other income.

Transfer of right to, Transferring your right to income.

Type of, Type of income.

Income taxes (see Federal income tax)

Federal (see Federal income tax)

Foreign (see Foreign income taxes)

State or local (see State or local income taxes)

Income-producing expenses, Other Expenses (Line 22)

Income-producing property:

Deduction of interest on loan for, Income-producing rental or royalty interest.

Income:, Gross income defined., 6. Wages, Salaries, and Other Earnings, 13. Other Income, Alimony., Utility rebates.

(see also Alimony)

(see also Gross income)

(see also Wages and salaries)

Bartering, Bartering

Canceled debts, Canceled Debts

Constructive receipt of, Constructive receipt., Payment to an agent., Constructive receipt.

Excess reimbursement of medical expenses, Excess reimbursement.

Illegal income, Stolen property.

Interest, 8. Interest Income

Investment income, Investment income defined.

Jury duty pay, Jury duty.

Life insurance proceeds, Life Insurance Proceeds

Nonemployee compensation, Nonemployee compensation.

Paid to agent, Payment to an agent.

Paid to third party, Payment to third party.

Partnership, Partnership income., Partnership Income

Prepaid, Income paid in advance.

Recovery, Recoveries

Royalties, Royalties

S corporation, S corporation income., S Corporation Income

Self-employment, Self-employment income., Coverdell Education Savings Account (ESA)

Tax exempt, Tax-exempt income.

Taxable income in excess of $100,000, You must use Form 1040 if any of the following apply.

Taxable income less than $100,000, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply.

Underreported, Amended Returns and Claims for Refund

Indefinite absence from job:

Work-related education during, Indefinite absence.

Independent contractors:

Homeworkers, deduction of expenses, Statutory employees.

Indians:

Employment credit, recapture of:

Filing requirements (Table 1-3),

Fishing rights, Indian fishing rights.

Taxes collected by tribal governments, deduction of, Indian tribal government.

Individual retirement arrangements (IRAs), Rollovers, 18. Individual Retirement Arrangements (IRAs), Reminders, Rollovers, Roth IRAs, More information.

(see also Rollovers)

(see also Roth IRAs)

Distributions

Required minimum distributions (see this heading: Required distributions)

Early distributions (see Early withdrawal from deferred interest account)

Married couples (see this heading: Spousal IRAs)

Penalties

Early distributions (see Early withdrawal from deferred interest account)

Withdrawals

Early (see Early withdrawal from deferred interest account)

Required (see this heading: Required distributions)

Individual retirement arrangements (IRAs):

Administrative fees, Trustees' fees., Trustees' fees., Trustee's Administrative Fees for IRA

Age 59½ for distribution, Age 59½ rule.

Age 59½ for distribution:

Exception to rule, Exceptions.

Age 70½:

Contributions cut off at, Age 70½ rule.

Distributions required at, IRA owners., Excess Accumulations (Insufficient Distributions)

Compensation, defined, What is compensation?

Contribution limits, How Much Can Be Contributed?, General limit.

Contribution limits:

Age 50 or older, $3,500, General limit.

Under age 50, $3,000, General limit.

Contributions, You can use Form 1040EZ if all of the following apply., Special Rules, Individual retirement arrangements (IRAs).

Contributions:

Credit, Reminders

Designating year for which contribution is made, Designating year for which contribution is made.

Excess, Excess Contributions

Filing before contribution is made, Filing before a contribution is made.

Nondeductible, Nondeductible Contributions

Not required annually, Contributions not required.

Roth IRA contribution for same year, How Much Can Be Contributed?, Roth IRAs and traditional IRAs.

Time of, When Can Contributions Be Made?

Withdrawal before filing due date, Contributions returned before the due date of return.

Cost basis, Cost basis., Partly taxable.

Deduction for, You can use Form 1040A if all of the following apply., How Much Can You Deduct?

Deduction for:

Filing status and, Deduction phaseout.

Participant covered by employer retirement plan (Table 18-1),

Participant not covered by employer retirement plan (Table 18-2),

Phaseout, What's New for 2004, Deduction phaseout.

Definition of, Traditional IRAs, What Is a Traditional IRA?

Distributions:

At age 59½, Age 59½ rule., Exceptions.

Divorced taxpayers, Transfers Incident to Divorce

Education IRAs (see Coverdell ESAs)

Employer retirement plan participants, What's New for 2005, Covered by an employer retirement plan., Limit If Covered by Employer Plan

Establishing account, Who Can Set Up a Traditional IRA?

Establishing account:

Time of, When and How Can a Traditional IRA Be Set Up?

Where to set up account, When and How Can a Traditional IRA Be Set Up?

Excess contributions, Excess Contributions

Figuring modified AGI (Worksheet 18-1),

Forms to use:

Form 1099-R for reporting distributions, The 1099 Series, Distributions reported on Form 1099-R.

Form 8606 for nondeductible contributions, Reminders

Inherited IRAs, Inherited IRAs., Inherited pension or IRA., Inherited IRAs, Inherited IRAs., Inherited IRAs.

Inherited IRAs:

Conversion to Roth IRAs, Inherited IRAs.

Required distributions, Beneficiaries.

Interest on, treatment of, Reminders

Modified adjusted gross income (MAGI):

Computation of, Modified adjusted gross income (AGI).

Effect on deduction if covered by employer retirement plan (Table 18-1),

Effect on deduction if not covered by employer retirement plan (Table 18-2),

Worksheet 18-1,

Nondeductible contributions, Nondeductible Contributions

Nondeductible contributions:

Early withdrawal, Nondeductible contributions.

Tax on earnings on, Tax on earnings on nondeductible contributions.

Ordinary income, distributions as, Ordinary income.

Penalties, What Acts Result in Penalties or Additional Taxes?

Penalties:

Excess contributions, Excess Contributions

Form 8606 not filed for nondeductible contributions, Reminders, Penalty for failure to file Form 8606.

Overstatement of nondeductible contributions, Penalty for overstatement.

Prohibited transactions, Effect on an IRA account.

Required distributions, failure to take, When Must You Withdraw IRA Assets? (Required Minimum Distributions), Excess Accumulations (Insufficient Distributions)

Prohibited transactions, Prohibited Transactions

Recharacterization of contribution, Recharacterizations

Reporting of:

Distributions, Reporting taxable distributions on your return.

Filing requirements (Table 1-3),

Recharacterization of contributions, Reporting a recharacterization.

Required distributions, Required distributions., When Must You Withdraw IRA Assets? (Required Minimum Distributions)

Required distributions:

Excess accumulations, Excess Accumulations (Insufficient Distributions)

Retirement savings contribution credit, Special Rules, Retirement Savings Contributions Credit

Self-employed persons, Self-employment income.

Spousal IRAs, Reminders, Reminders, Spousal IRA limit., Spousal IRA., If your spouse is covered.

Taxability, Exceptions.

Taxability:

Distributions, Are Distributions Taxable?

Time of taxation, Traditional IRAs

Transfers permitted, Can You Move Retirement Plan Assets?

Transfers permitted:

To Roth IRAs, Transfers to Roth IRAs., Converting From Any Traditional IRA to a Roth IRA

Trustee administrative fees, Trustee's Administrative Fees for IRA

Trustee-to-trustee transfers, Trustee-to-Trustee Transfer

Trustee-to-trustee transfers:

IRA to Roth IRA, Conversion methods.

Types of, Kinds of traditional IRAs.

Withdrawals, When Can You Withdraw or Use IRA Assets?, How to treat withdrawn contributions.

Withholding, Form W-2., Pensions and Annuities, Withholding.

Individual taxpayer identification numbers (ITINs), Individual taxpayer identification number (ITIN)., Born and died in 2004.

Individual taxpayers (see Single taxpayers)

Information returns, Form W-2., Form 1099., Form W-2., Backup Withholding, Withholding

(see also Form 1099)

(see also Form W-2)

(see also Form W–2)

Information returns:, Interest and Dividend Income (Forms 1099), Reminder, Back pay awards., Accrued leave payment., Stock you chose to include in income.

(see also Form 1099)

(see also Form W-2)

Partnerships to provide, Schedule K-1 (Form 1065).

Inheritance, Estate and trust income.

(see also Estate beneficiaries)

IRAs (see Individual retirement arrangements (IRAs))

Inheritance tax

Deduction, Taxes and Fees You Cannot Deduct

Inheritance tax:

Deductibility of, Taxes and Fees You Cannot Deduct

Inheritance:

Adjusted basis for, Inherited Property

Holding period, determination of, Inherited property.

IRAs (see Individual retirement arrangements (IRAs))

Not taxed, Gifts and inheritances., Gifts and inheritances.

Injured spouse, Joint return and injured spouse.

Injured spouse:

Claim for refund, Joint return and injured spouse., Exceptions for special types of refunds.

Innocent spouse relief:

Form 8857, Relief from joint liability.

Joint returns, Relief from joint liability.

Insider stock compensation from expatriated corporation

Tax on, Other taxes.

Insolvency:

Canceled debt not deemed to be income, Excluded debt.

Financial institution's insolvency causing deductible loss, Deposit in Insolvent or Bankrupt Financial Institution

Reporting of, Loss on deposits.

Installment agreements, Installment Agreement

Installment sales, Other property transactions.

Installment sales:

Capital gains and, Installment sales.

Home sale, Installment sale.

Insulin:

Deductibility as medical expense,

Insurance, Medical insurance premiums.

(see also Health insurance)

Accident (see Accident insurance)

Life (see Group-term life insurance) (see Life insurance)

Premiums (see Insurance premiums)

Insurance agents:

Deduction of expenses, Statutory employees.

Insurance companies:

State delinquency proceedings, IRA distributions not made due to, Exemption from tax.

Insurance premiums:

Alimony when spouse owns life insurance policy, Life insurance premiums.

Casualty insurance, Settlement costs.

FHA mortgage insurance premiums, not deductible, Items You Cannot Deduct

Health insurance, Medical insurance premiums.

Health insurance:

Credit for workers displaced by foreign trade or receiving pension from PBGC, Reminders

Deductible as medical expense,

Self-employed persons, deductible, Health Insurance Costs for Self-Employed Persons

Home, Homeowners' Insurance Premiums

Homeowners', Homeowners' Insurance Premiums

Liability, Business Liability Insurance

Life, Life Insurance Premiums

Life insurance,

Life insurance:

Alimony, Life insurance premiums.

Mortgage, Amounts charged for services., Homeowners' Insurance Premiums

Paid in advance, Prepaid insurance premiums.

Rental expenses, deduction of premiums paid in advance, Insurance premiums paid in advance.

Insurance proceeds:

Dividends, interest on, Interest on insurance dividends.

Installment payments, Insurance

Life, Insurance

Insurance:

Alimony deduction for, when home owned as tenants in common, Taxes and insurance.

Casualty or theft loss, reimbursement to adjust loss, Insurance and Other Reimbursements

Distributions from, reporting of, Dividends on insurance policies.

Dividends:

Interest on, Dividends on insurance policies.

Form 1099-R to report benefits, The 1099 Series

Life (see Life insurance)

Living expenses paid by, possible income from, Insurance payments for living expenses.

Reimbursements:

From casualty insurance, Casualty insurance and other reimbursements.

State insurer delinquency proceedings preventing minimum pension distributions, State insurer delinquency proceedings.

Trade of policies and annuities, Insurance policies and annuities.

Withholding against benefits, Form W-2.

Interest income, 8. Interest Income

Interest income:

Children:

Gifts to children, Income from property received as a gift.

Deceased taxpayer, reporting of, Interest and Dividend Income (Forms 1099)

Dividends as, Introduction

Form 1099-INT, Form 1099., The 1099 Series

Frozen deposits, from, Interest on frozen deposits.

Property purchase financed without adequate stated interest, treatment of, How To Figure Gain or Loss

Recovery of income, on, Interest on recovery.

Reporting on Forms 1040, 1040A, or 1040EZ, Reminders, You can use Form 1040A if all of the following apply.

Reporting on Forms 1040, 1040A, or 1040EZ:

Form 1040EZ filing threshold, Reminders, You can use Form 1040EZ if all of the following apply.

Savings bonds, Interest and Dividend Income (Forms 1099), Interest on qualified savings bonds.

(see also U.S. savings bonds)

Securities, Form 1040 to be used, You must use Form 1040 if any of the following apply.

Tax refunds, from, Interest on erroneous refund.

Interest payments, Form 1098., 25. Interest Expense, Income-producing rental or royalty interest.

(see also Mortgages)

Interest payments:, Mortgage interest refund.

(see also Mortgages)

Allocation of interest according to use of loan, Allocation of Interest

Canceled debt including, Interest included in canceled debt.

Car loans, Interest on car loans.

Deductions:

Forms to use (Table 25-1), Mortgage proceeds used for business or investment.,

Not allowed, Items You Cannot Deduct

Reporting of, How To Report

Investment interest, Investment Interest

Investment interest:

Limit on deduction, Limit on Deduction

Personal interest not deductible, Reminders, Items You Cannot Deduct, Personal Interest

Reporting of deductions, How To Report

Student loan interest deduction, Student Loan Interest Deduction

Student loans deduction, You can use Form 1040EZ if all of the following apply., You can use Form 1040A if all of the following apply., Special Rules, Reminders, Personal Interest

Unstated interest, Loans with low or no interest., How To Figure Gain or Loss

Interest:

Fees to collect, Fees to Collect Interest and Dividends

Frozen deposits, Interest income on frozen deposits.

Usurious, Usurious interest.

Interference with business operations:

Damages as income, Court awards and damages.

Internal Revenue Service (IRS):

Fraud or misconduct of employee, reporting anonymously, Reminders

Mission of, IRS mission.

Underpayment penalties, computation by, Underpayment Penalty

Web site of, Help from the IRS., Free tax services.

International employment (see Foreign employment)

International organizations, employees of, Employees of international organizations or foreign governments.

Internet

Electronic filing over (see E-file)

Internet:

Standard meal allowance rates, Amount of standard meal allowance.

Web site of IRS, Help from the IRS., Free tax services.

Inventory, retail, Capital Assets and Noncapital Assets

Investment property

Rental property (see Rental income and expenses)

Investments:

Classes as travel expenses, Conventions

Expenses, Investment expenses.

Fees, Investment Fees and Expenses

Property

As capital asset, Investment Property

Definition, Investment Property

Like-kind exchanges, Like-kind exchanges.

Seminars, Investment-Related Seminars

Involuntary conversion, Condemnations., Deductible losses.

(see also Condemnation of property)

Involuntary conversion:

Basis computation, Involuntary Conversions

Basis for depreciation, Basis for depreciation.

IRAs (see Individual retirement arrangements (IRAs))

Israel:

Contributions to charitable organizations in, Certain foreign charitable organizations., Contributions to Nonqualified Organizations

Itemized deductions:

Adjusted gross income limiting, Reminders, Reminder

Changing from standard to itemized deduction (or vice versa), Changing your mind.

Choosing to itemize, Who Should Itemize, When to itemize.

Final return for decedent, Itemized Deductions

Form 1040 to be used, You must use Form 1040 if any of the following apply., Where to report.

IE written on Form 1040, Electing to itemize for state tax or other purposes.

Limits on, Special Rules, 31. Limit on Itemized Deductions

Limits on:

Charitable donations, deduction for, Reminders

Married filing separately, Special Rules, Married persons who filed separate returns.

Married filing separately:

One spouse has itemized, Persons not eligible for the standard deduction.

Recovery, Itemized Deduction Recoveries

Standard deduction to be compared with, Who Should Itemize

State tax, for, Electing to itemize for state tax or other purposes.

Itinerant workers:

Deduction of expenses, Statutory employees.

Tax home, determination of, Tax Home

ITINs, Individual taxpayer identification number (ITIN) for aliens. (see Individual taxpayer identification numbers (ITINs))

J

Jewelry:

As capital assets, Capital Assets and Noncapital Assets

Job (see headings starting with "Employee" or "Employer")

Search

Expenses, Job Search Expenses

Job search:

Deduction of expenses for Interviews, Job interview expenses.

Joint accounts, Joint accounts.

Joint accounts:

Dividends, reporting of, Stock certificate in two or more names.

Joint returns:

Accounting period, Accounting period.

After separate return, Joint Return After Separate Returns

Carryover of capital loss, Joint and separate returns.

Deceased spouse, Spouse died during the year., Filing the return., Joint return., Joint return by surviving spouse.

Deceased spouse:

Personal representative may revoke election, Personal representative may revoke joint return election.

Dependency exemption, Joint return., Joint Return Test

Divorced taxpayers, Divorced persons., Divorced taxpayer.

Estimated tax, Married taxpayers.

Excess social security/railroad retirement tax withholding credit, Joint return.

Extension for citizens outside U.S., Married taxpayers.

Filing status, Married Filing Jointly

Form 1040EZ, use of, You can use Form 1040EZ if all of the following apply.

Fraud penalty, Joint return.

Guardian of spouse, signing as, Signing as guardian of spouse.

Injured spouse, Joint return and injured spouse.

Injured spouse:

Claim for refund, Exceptions for special types of refunds.

Innocent spouse, Relief from joint liability.

Investment income of child under age 14, Which Parent's Return To Use

Nonresident or dual-status alien spouse, Nonresident alien or dual-status alien.

Pensions or annuities, Joint return.

Pensions or annuities:

Worksheet,

Personal exemption, Married persons., Joint return.

Responsibility for, Reminders, Accounting period.

Separate return after joint, Separate Returns After Joint Return

Signing, Spouse unable to sign., Signing a joint return.

Signing:

Deceased spouse, Signing the return.

Social security and railroad retirement benefits, Joint return.

State and local income taxes, deduction of, Joint federal return.

Judges, federal:

Employer retirement plan coverage, Federal judges.

Jury duty pay, Jury duty.

K

Keogh plans, 11. Retirement Plans, Pensions, and Annuities, Qualified plans for self-employed individuals.

(see also Retirement plans)

Kickbacks, Kickbacks.

Kiddie tax (see Children, subheading: Investment income of child under age 14)

Kidnapped children, Reminders, Kidnapped child., Kidnapped child.

Losses due to ransom, Theft

Kidnapped children:

Child tax credit, Kidnapped child.

Personal exemption, Kidnapped child.

L

Labels, Peel-Off Address Label

Labels:

Address correction, Correcting the label.

Social Security Number to be written on, Reminders

Labor unions:

Collective bargaining agreements, Union agreements.

Contributions to, no charitable deduction for,

Dues and fees, Union benefits and dues., Contributions to Nonqualified Organizations

Sick pay withholding under union agreements, Union agreements.

Strike and lockout benefits, Strike and lockout benefits.

Trips from union hall to place of work, Union members' trips from a union hall.

Unemployment compensation payments from, Payments by a union.

Land, Real Property

(see also Real estate)

Land:

Depreciation not allowed for, Land.

Landlords (see Rental income and expenses)

Landscaping:

Cost of, when casualty or theft loss involved, Progressive deterioration., Landscaping.

Larceny:

Losses due to, Theft

Late filing, Reminders, Late-filed return.

Late filing:

Penalties, Filing late., Filing late., Return over 60 days late.

Late payment:

Penalties on tax payments, Paying tax late.

Public utility charges, not deductible, Personal Interest

Laundry:

Business-related travel expense, Table 28-1. Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes., Incidental expenses.

Law enforcement officers:

Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty

Lead-based paint removal:

Deductibility as medical expense,

Leased property:

Casualty or theft loss, Leased property.

Leased vehicles:

Car expenses, Leasing a car.

Leases (see Rental income and expenses)

Legal expenses, Legal Expenses, Personal Legal Expenses

Liability insurance:

Reimbursements from, Casualty insurance and other reimbursements.

License and similar fees, List of Nondeductible Expenses

License fees:

Deductibility of, Taxes and Fees You Cannot Deduct

Life insurance, You must use Form 1040 if any of the following apply.

(see also Group-term life insurance)

Accelerated death benefits (see Accelerated death benefits)

Life insurance:, Group-term life insurance., Accelerated Death Benefits

(see also Accelerated death benefits)

(see also Group-term life insurance)

Alimony, premiums when spouse owns policy, Life insurance premiums.

Demutualization of companies, Demutualization of life insurance companies.

Form 1099-R for surrender of policy for cash, Surrender of policy for cash.

Premiums, Life Insurance Premiums

Not deductible,

Proceeds, Insurance

As income, Life Insurance Proceeds

Public safety officers who died or were killed in line of duty, tax exclusion, Reminders, Public Safety Officer Killed in the Line of Duty

Surrender of policy for cash, Surrender of policy for cash.

Withholding, Pensions and Annuities

Life-care fees:

Paid to retirement home and designated for medical care, deductibility,

Lifetime learning credit

Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI).

Lifetime learning credit:

Can you claim (Figure 37-A), When Must the Credit Be Repaid (Recaptured)

Claiming the credit, Claiming the Credit

Comparison with Hope credit chart (Table 37-1),

Eligible student, Who Is an Eligible Student

Figuring the credit, Figuring the Credit

Married filing separately, Special Rules, Who Cannot Claim a Credit

Tuition deduction and, Who Cannot Take the Deduction, No Double Benefit Allowed

Like-kind exchange, Home acquired in like-kind exchange.

Like-kind exchanges, Like-kind exchanges.

Like-kind exchanges:

Basis for depreciation, Basis for depreciation.

Qualifications, Like-Kind Exchanges

Limit on credit., Limit on credit.

Limit on itemized deduction:

2004 changes, What's New for 2004

Limits:

Itemized deductions, 31. Limit on Itemized Deductions

Miscellaneous deductions, Deductions Subject to the 2% Limit

Line of credit for home:

Interest, Home Mortgage Interest

Liquidating distributions, Liquidating Distributions

Living expenses:

Insurance paying, possible income from, Insurance payments for living expenses.

Loans, You can use Form 1040EZ if all of the following apply., Exceptions for special types of refunds., Student Loan Interest Deduction

(see also Debts)

(see also Student loans)

Home mortgages (see Mortgages)

Loans:, Personal Interest

(see also Student loans)

Fees for, not deductible, Items You Cannot Deduct

Home improvement loans, Home improvement loan.

Origination fees (see Points)

Retirement plans, from, Loans.

Lobbying expenses, Lobbying Expenses

Lobbying:

Contributions for, not charitable deductions, , Contributions From Which You Benefit

Local assessments:

Adjusted basis for, Assessments for local improvements.

Deductibility of, Taxes for local benefits.

Rental property, deductions for, Local benefit taxes.

Local government employees

Section 457 plans for employees (see Section 457 deferred compensation plans)

Lockout benefits, Strike and lockout benefits.

Lodges (see Social clubs)

Lodging (see Meal and lodging expenses)

Long-term care insurance contracts, Long-Term Care Insurance Contracts

Long-term care insurance contracts:

Chronically ill individual, Chronically ill individual., Exclusion for chronic illness.

Deductibility of medical expense,

Exclusion, limit of, Limit on exclusion.

Qualified services defined, Qualified long-term care services.

Long-term debt instruments, Long-term debt instruments issued after 1954 and before May 28, 1969 (or before July 2, 1982, if a government instrument).

Long-term gains and losses (see Capital gains or losses)

Losses, Passive Activity Limits (see Gains and losses)

(see also Passive activity)

Capital (see Capital gains or losses)

Casualty (see Casualty losses)

Gambling (see Gambling winnings and losses)

Theft (see Theft losses)

Losses:

Casualty, Certain Casualty and Theft Losses, Certain Casualty and Theft Losses

Theft, Certain Casualty and Theft Losses, Certain Casualty and Theft Losses

Lost property, Lost or Mislaid Cash or Property

Lost property:

When deemed casualty loss, Mislaid or lost property.

Lotteries and raffles, Gambling winnings., Lotteries and raffles.

(see also Gambling winnings and losses)

Lotteries and raffles:, Lotteries and raffles.

No charitable deduction for tickets, , Contributions From Which You Benefit

Lump-sum distributions, Lump-Sum Distributions

Lump-sum distributions:

10-year tax option, 10-Year Tax Option

Capital gain treatment, Capital Gain Treatment

Cost calculation, Cost.

Election of, Electing optional lump-sum treatment.

Form 4972, Lump-Sum Distributions

Net unrealized appreciation (NUA), Taxable and tax-free parts of the distribution., Net unrealized appreciation (NUA).

Rollovers of, How to treat the distribution.

Taxable and tax-free parts, Taxable and tax-free parts of the distribution.

Luxury travel:

Travel expenses when incidental business activities, Trip Primarily for Personal Reasons

Work-related education, deduction of expenses, Cruises and conventions.