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Pub. 501, Exemptions, Standard Deduction, and Filing Information 2004 Tax Year

Introductory Material

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

What's New for 2004

Who must file. Generally, the amount of income you can receive before you must file a return has increased. Table 1 shows the filing requirements for most taxpayers.

Exemption amount. The amount you can deduct for each exemption has increased from $3,050 in 2003 to $3,100 in 2004.

Exemption phaseout. You lose all or part of the benefit of your exemptions if your adjusted gross income is above a certain amount. The amount at which this phaseout begins depends on your filing status. For 2004, the phaseout begins at $107,025 for married persons filing separately; $142,700 for single individuals; $178,350 for heads of household; and $214,050 for married persons filing jointly or qualifying widow(er)s. See Phaseout of Exemptions, later.

Standard deduction. The standard deduction for most taxpayers who do not itemize deductions on Schedule A of Form 1040 is higher in 2004 than it was in 2003. The amount depends on your filing status. The 2004 Standard Deduction Tables are shown near the end of this publication as Tables 5, 6, and 7.

Itemized deductions. Some of your itemized deductions may be limited if your adjusted gross income is more than $142,700 ($71,350 if you are married filing separately). See Who Should Itemize, later.

What's New for 2005

Exemption for dependent. Beginning in 2005, you will use new rules to determine whether you can claim an exemption for a dependent. For details, see Publication 553, Highlights of 2004 Tax Changes.

Head of household filing status. Beginning in 2005, you will use new rules to determine whether someone is your qualifying person so you can claim head of household filing status. See Publication 553 for more information.

Reminders

Election to report child's unearned income on parent's return.  You may be able to include your child's interest and dividend income on your tax return by using Form 8814, Parents' Election To Report Child's Interest and Dividends. If you choose to do this, your child will not have to file a return.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Introduction

This publication discusses some tax rules that affect every person who may have to file a federal income tax return. It answers some basic questions: who must file; who should file; what filing status to use; how many exemptions to claim; and the amount of the standard deduction.

The first section of this publication explains who must file an income tax return. If you have little or no gross income, reading this section will help you decide if you have to file a return.

Table 1. 2004 Filing Requirements Chart for Most Taxpayers

IF your filing status is... AND at the end of 2004 you were... * THEN file a return if your gross income was at least... **
single under 65  $7,950
65 or older $9,150
head of household under 65 $10,250
65 or older $11,450
married, filing jointly *** under 65 (both spouses) $15,900
65 or older (one spouse) $16,850
65 or older (both spouses) $17,800
married, filing separately any age  $3,100
qualifying widow(er) with dependent child under 65 $12,800
65 or older $13,750
* If you were born before January 2, 1940, you are considered to be 65 or older at the end of 2004.
** Gross income means all income you received in the form of money, goods, property, and
services that is not exempt from tax, including any income from sources outside the United
States (even if you may exclude part or all of it). Do not include social security benefits unless
you are married filing a separate return and you lived with your spouse at any time during
2004.
*** If you didn't live with your spouse at the end of 2004 (or on the date your spouse died) and
your gross income was at least $3,100, you must file a return regardless of your age.

The second section is about who should file a return. Reading this section will help you decide if you should file a return, even if you are not required to do so.

The third section helps you determine which filing status to use. Filing status is important in determining whether you must file a return, your standard deduction, and your tax rate. It also helps determine what credits you may be entitled to.

The fourth section discusses exemptions, which reduce your taxable income. The discussions include the social security number requirement for dependents, the rules for multiple support agreements, and the rules for divorced or separated parents.

The fifth section gives the rules and dollar amounts for the standard deduction — a benefit for taxpayers who do not itemize their deductions. This section also discusses the standard deduction for taxpayers who are blind or age 65 or older, and special rules for dependents. In addition, this section should help you decide whether you would be better off taking the standard deduction or itemizing your deductions.

The last section explains how to get tax help from the IRS.

This publication is for U.S. citizens and resident aliens only. If you are a resident alien for the entire year, you must follow the same tax rules that apply to U.S. citizens. The rules to determine if you are a resident or nonresident alien are discussed in chapter 1 of Publication 519, U.S. Tax Guide for Aliens.

Nonresident aliens.   If you were a nonresident alien at any time during the year, the rules and tax forms that apply to you may be different from those that apply to U.S. citizens. See Publication 519.

Comments and suggestions.   We welcome your comments about this publication and your suggestions for future editions.

  You can write to us at the following address:


Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW
Washington, DC 20224

  We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

  You can email us at *[email protected]. (The asterisk must be included in the address.) Please put “Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products.

Tax questions.   If you have a tax question, visit www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either of the addresses listed above.

Ordering forms and publications.   Visit www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to one of the three addresses shown under How To Get Tax Help in the back of this publication.

Useful Items - You may want to see:

Publication

  • 559 Survivors, Executors, and Administrators

  • 929 Tax Rules for Children and Dependents

Form (and Instructions)

  • 1040X
    Amended U.S. Individual Income Tax Return

  • 2848
    Power of Attorney and Declaration of Representative

  • 8332
    Release of Claim to Exemption for Child of Divorced or Separated Parents

  • 8814
    Parents' Election To Report Child's Interest and Dividends

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