Publication 501: Exemptions, Standard Deduction, and Filing Information; Publication 501 Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
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Table of Contents

Important Changes

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 $3,000 in 2002 to $3,050 in 2003.

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 2003, the phaseout begins at $104,625 for married persons filing separately; $139,500 for single individuals; $174,400 for heads of household; and $209,250 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 2003 than it was in 2002. The amount depends on your filing status. The 2003 Standard Deduction Tables are shown near the end of this publication as Tables 7, 8, and 9.

Itemized deductions. Some of your itemized deductions may be limited if your adjusted gross income is more than $139,500 ($69,750 if you are married filing separately). See Who Should Itemize, later.

Important Reminders

Social security number for dependents. You must list either the social security number (SSN), individual taxpayer identification number (ITIN), or adoption taxpayer identification number (ATIN) of every person for whom you claim an exemption. If you do not list the dependent's SSN, ITIN, or ATIN, the exemption may be disallowed. See Social Security Numbers for Dependents, later.

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 1.2003 Filing Requirements Chart for Most Taxpayers

IF your filing status is...	AND at the end of 2003 you were... ^*	THEN file a return if your gross income was at least... ^**
single	under 65	$7,800
single	65 or older	$8,950
head of household	under 65	$10,050
head of household	65 or older	$11,200
married, filing jointly ^***	under 65 (both spouses)	$15,600
	65 or older (one spouse)	$16,550
	65 or older (both spouses)	$17,500
married, filing separately	any age	$3,050
qualifying widow(er) with dependent child	under 65	$12,550
qualifying widow(er) with dependent child	65 or older	$13,500

* If you were born before January 2, 1939, you are considered to be 65 or older at the end of 2003.

** 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
2003.

*** If you didn't live with your spouse at the end of 2003 (or on the date your spouse died) and
your gross income was at least $3,050, 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.

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.

Comments and suggestions.

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

You can e-mail us at *taxforms@irs.gov. Please put “Publications Comment” on the subject line.

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.

Publication 501Introductory Material

Important Changes

Important Reminders

Introduction

Useful Items - You may want to see:

Publication 501
Introductory Material