If the address on your peel-off label is not your current address, cross out your old address and print your new address. If you plan to move after filing your return, see page 60.

If you changed your name because of marriage, divorce, etc., be sure to report the change to your local Social Security Administration office before filing your return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. See page 60 for more details. If you received a peel-off label, cross out your former name and print your new name.

Print or type the information in the spaces provided. If you are married filing a separate return, enter your husband's or wife's name on line 3 instead of below your name.

If you filed a joint return for 2002 and you are filing a joint return for 2003 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2002 return.

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

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

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

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

Generally, you report only your own income, exemptions, deductions, and credits. Different rules apply to people in community property states. See page 22.

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

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

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

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

Check the box on line 6b if you file either (a) a joint return or (b) a separate return and your spouse had no income and is not filing a return. However, do not check the box if your spouse can be claimed as a dependent on another person's return.

You can take an exemption for each of your dependents. The following is a brief description of the five tests that must be met for a person to qualify as your dependent. If you have more than five dependents, attach a statement to your return with the required information.

Support Test.   You must have provided over half of the person's total support in 2003. But there are two exceptions to this test: One for children of divorced or separated parents and one for persons supported by two or more taxpayers.

  

  For more details about the tests, including any exceptions that apply, see Pub. 501.

Line 6c, Column (2)

You must enter each dependent's social security number (SSN). Be sure the name and SSN entered agree with the dependent's social security card. Otherwise, at the time we process your return, we may disallow the exemption claimed for the dependent and reduce or disallow any other tax benefits (such as the child tax credit) based on that dependent. If the name or SSN on the dependent's social security card is not correct, call the Social Security Administration at 1-800-772-1213.

For details on how your dependent can get an SSN, see page 19. If your dependent will not have a number by April 15, 2004, see What if You Cannot File on Time? on page 15.

If your dependent child was born and died in 2003 and you do not have an SSN for the child, you may attach a copy of the child's birth certificate instead and enter “Died” in column (2).

Adoption Taxpayer Identification Numbers (ATINs).   If you have a dependent who was placed with you by an authorized placement agency and you do not know his or her SSN, you must get an ATIN for the dependent from the IRS. An authorized placement agency includes any person authorized by state law to place children for legal adoption. See Form W-7A for details.

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

You may owe social security and Medicare tax on unreported or allocated tips. See the instructions for line 56 on
page 42.

A higher limit may apply to participants in section 457(b) deferred compensation plans for the 3 years before retirement age. Contact your plan administrator for more information.

You may not deduct the amount deferred. It is not included as income in box 1 of your Form W-2.

If you were, the “Statutory employee” box in box 13 of your Form W-2 should be checked. Statutory employees include fulltime life insurance salespeople, certain agent or commission drivers and traveling salespeople, and certain homeworkers. If you have related business expenses to deduct, report the amount shown in box 1 of your Form W-2 on Schedule C or C-EZ along with your expenses.

Your employer is required to provide or send Form W-2 to you no later than February 2, 2004. If you do not receive it by early February, use TeleTax topic 154 (see page 11) to find out what to do. Even if you do not get a Form W-2, you must still report your earnings on line 7. If you lose your Form W-2 or it is incorrect, ask your employer for a new one.

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

Interest credited in 2003 on deposits that you could not withdraw because of the bankruptcy or insolvency of the financial institution may not have to be included in your 2003 income. For details, see Pub. 550.

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

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

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

Some distributions are nontaxable because they are a return of your cost (or other basis). They will not be taxed until you recover your cost (or other basis). You must reduce your cost (or other basis) by these distributions. After you get back all of your cost (or other basis), you must report these distributions as capital gains on Schedule D. For details, see Pub. 550.

Dividends on insurance policies are a partial return of the premiums you paid. Do not report them as dividends. Include them in income only if they exceed the total of all net premiums you paid for the contract.

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

Be sure you use Schedule D or the Qualified Dividends and Capital Gain Tax Worksheet, whichever applies, to figure your tax. Your tax may be less. See the instructions for line 41 that begin on page 36 for details.

None of your refund is taxable if, in the year you paid the tax, you did not itemize deductions.

If you received a refund, credit, or offset of state or local income taxes in 2003, you may receive a Form 1099-G. If you chose to apply part or all of the refund to your 2003 estimated state or local income tax, the amount applied is treated as received in 2003. If the refund was for a tax you paid in 2002 and you itemized deductions for 2002, use the worksheet on page 24 to see if any of your refund is taxable.

Exception.   See Recoveries in Pub. 525 instead of using the worksheet on page 24 if any of the following apply.

• You received a refund in 2003 that is for a tax year other than 2002.
• You received a refund other than an income tax refund, such as a real property tax refund, in 2003 of an amount deducted or credit claimed in an earlier year.
• Your 2002 taxable income was less than zero.
• You made your last payment of 2002 estimated state or local income tax in 2003.
• You owed alternative minimum tax in 2002.
• You could not deduct the full amount of credits you were entitled to in 2002 because the total credits exceeded the amount shown on your 2002 Form 1040, line 44.
• You could be claimed as a dependent by someone else in 2002.

State and Local Income Tax Refund Worksheet—Line 10

Keep for your Records

1.		Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the amount on your 2002 Schedule A (Form 1040), line 5										1.
2.		Enter your total allowable itemized deductions from your 2002 Schedule A (Form 1040), line 28								2.
		Note. If the filing status on your 2002 Form 1040 was married filing separately and your spouse itemized deductions in 2002, skip lines 3, 4, and 5, and enter the amount from line 2 on line 6.
3.		Enter the amount shown below for the filing status claimed on your 2002 Form 1040.
	Single — $4,700 Married filing jointly or qualifying widow(er) — $7,850							3.
	Married filing separately—$3,925 Head of household — $6,900
4.		Did you fill in line 37a on your 2002 Form 1040?
		No.	Enter -0-.
		Yes.	Multiply the number in the box on line 37a of your 2002 Form 1040 by: $900 if your 2002 filing status was married filing jointly or					4.
			separately or qualifying widow(er); $1,150 if your 2002 filing status was single or head of household.
5.		Add lines 3 and 4								5.
6.		Is the amount on line 5 less than the amount on line 2?
		No.		None of your refund is taxable.
		Yes.	Subtract line 5 from line 2									6.
7.		Taxable part of your refund. Enter the smaller of line 1 or line 6 here and on Form 1040, line 10										7.

  Also, see Tax Benefit Rule in Pub. 525 instead of using the worksheet below if all three of the following apply.

1. You had to use the Itemized Deductions Worksheet in the 2002 Schedule A instructions because your 2002 adjusted gross income was over: $137,300 ($68,650 if married filing separately).
2. You could not deduct all of the amount on line 1 of the 2002 Itemized Deductions Worksheet.
3. The amount on line 8 of that 2002 worksheet would be more than the amount on line 4 of that worksheet if the amount on line 4 were reduced by 80% of the refund you received in 2003.

Enter amounts received as alimony or separate maintenance. You must let the person who made the payments know your social security number. If you do not, you may have to pay a $50 penalty. For more details, use TeleTax topic 406 (see page 11) or see Pub. 504.

If you operated a business or practiced your profession as a sole proprietor, report your income and expenses on Schedule C or C-EZ.

If you had a capital gain or loss, including any capital gain distributions, you must complete and attach Schedule D.

Exception.   You do not have to file Schedule D if all of the following apply.

• The only amounts you have to report on Schedule D are capital gain distributions from box 2a of Form(s) 1099-DIV or substitute statements and post-May 5 capital gain distributions from box 2b.
• None of the Forms 1099-DIV or substitute statements have an amount in box 2c (qualified 5-year gain), box 2d (unrecaptured section 1250 gain), box 2e (section 1202 gain), or box 2f (collectibles (28%) gain).
• You are not filing Form 4952 (relating to investment interest expense) or if the amount on line 4g of that form includes any qualified dividends, it also includes all of your net capital gain from the disposition of property held for investment.

  If all of the above apply, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 13a and check the box on that line. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 13a only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee. See the Instructions for Schedule B for filing requirements for Forms 1099-DIV and 1096.

  

  If you do not have to file Schedule D, be sure you use the Qualified Dividends and Capital Gain Tax Worksheet on page 37 to figure your tax. Your tax may be less if you use this worksheet.

If you checked the box on line 13a because you are not required to file Schedule D, enter your total post-May 5 capital gain distributions on line 13b. This amount should be shown in box 2b of your Form(s) 1099-DIV or substitute statements. Reduce your total post-May 5 capital gain distributions by any post-May 5 capital gain distributions you received as a nominee (see the instructions for line 13a that begin on
page 24).

If you sold or exchanged assets used in a trade or business, see the Instructions for Form 4797.

You should receive a Form 1099-R showing the amount of any distribution from your individual retirement arrangement (IRA). Unless otherwise noted in the line 15a and 15b instructions, an IRA includes a traditional IRA, Roth IRA, simplified employee pension (SEP) IRA, and a savings incentive match plan for employees (SIMPLE) IRA. Except as provided below, leave line 15a blank and enter the total distribution on line 15b.

Exception 2.   If any of the following apply, enter the total distribution on line 15a and see Form 8606 and its instructions to figure the amount to enter on line 15b.

• You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional or SEP IRAs for 2003 or an earlier year. If you made nondeductible contributions to these IRAs for 2003, also see Pub. 590.
• You received a distribution from a Roth IRA. But if either 1 or 2 below applies, enter -0- on line 15b; you do not have to see Form 8606 or its instructions.
  1. Distribution code T is shown in box 7 of your Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 1998.
  2. Distribution code Q is shown in box 7 of your Form 1099-R.
• You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2003.
• You had a 2002 or 2003 IRA contribution returned to you, with the related earnings or less any loss, by the due date (including extensions) of your tax return for that year.
• You made excess contributions to your IRA for an earlier year and had them returned to you in 2003.
• You recharacterized part or all of a contribution to a Roth IRA as a traditional IRA contribution, or vice versa.

Note.

If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 15b. Enter the total amount of those distributions on line 15a.

  

  You may have to pay an additional tax if (a) you received an early distribution from your IRA and the total was not rolled over or (b) you were born before July 1, 1932, and received less than the minimum required distribution from your traditional, SEP, and SIMPLE IRAs. See the instructions for line 57 on page 42 for details.

You should receive a Form 1099-R showing the amount of your pension and annuity payments. See page 27 for details on
rollovers and lump-sum distributions. Do not include the following payments on lines 16a and 16b. Instead, report them on line 7.

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

If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. Your payments are fully taxable if (a) you did not contribute to the cost (see page 27) of your pension or annuity or (b) you got your entire cost back tax free before 2003.

Fully taxable pensions and annuities also include military retirement pay shown on Form 1099-R. For details on military disability pensions, see Pub. 525. If you received a Form RRB-1099-R, see Pub. 575 to find out how to report your benefits.

Enter the total pension or annuity payments you received in 2003 on line 16a. If your Form 1099-R does not show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 16b. But if your annuity starting date (defined on page 26) was after July 1, 1986, see Simplified Method on page 26 to find out if you must use that method to figure the taxable part.

You can ask the IRS to figure the taxable part for you for a $90 fee. For details, see Pub. 939.

If your Form 1099-R shows a taxable amount, you may report that amount on line 16b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method.

Your annuity starting date is the later of the first day of the first period for which you received a payment, or the date the plan's obligations became fixed.

You must use the Simplified Method if (a) your annuity starting date (defined on this page) was after July 1, 1986, and you used this method last year to figure the taxable part or (b) your annuity starting date was after November 18, 1996, and both of the following apply.

If you must use the Simplified Method, complete the worksheet on page 26 to figure the taxable part of your pension or annuity. For more details on the Simplified Method, see Pub. 575 or Pub. 721 for U.S. Civil Service retirement.

If you received U.S. Civil Service retirement benefits and you chose the alternative annuity option, see Pub. 721 to figure the taxable part of your annuity. Do not use the worksheet on page 26.

If you are the retiree, use your age on the annuity starting date. If you are the survivor of a retiree, use the retiree's age on his or her annuity starting date. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, use your combined ages on the annuity starting date.

If you are the beneficiary of an employee who died, see Pub. 575. If there is more than one beneficiary, see Pub. 575 or Pub. 721 to figure each beneficiary's taxable amount.

Your cost is generally your net investment in the plan as of the annuity starting date. It does not include pre-tax contributions. Your net investment should be shown in box 9b of Form 1099-R for the first year you received payments from the plan.

A rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan. Use lines 16a and 16b to report a rollover, including a direct rollover, from one qualified employer's plan to another or to an IRA or SEP.

Enter on line 16a the total distribution before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract any contributions (usually shown in box 5) that were taxable to you when made. From that result, subtract the amount that was rolled over. Enter the remaining amount, even if zero, on line 16b. Also, enter "Rollover" next to line 16b.

Special rules apply to partial rollovers of property. For more details on rollovers, including distributions under qualified domestic relations orders, see Pub. 575.

If you received a lump-sum distribution from a profit-sharing or retirement plan, your Form 1099-R should have the "Total distribution" box in box 2b checked. You may owe an additional tax if you received an early distribution from a qualified retirement plan and the total amount was not rolled over. For details, see the instructions for line 57 on page 42.

Enter the total distribution on line 16a and the taxable part on line 16b.

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

You should receive a Form 1099-G showing the total unemployment compensation paid to you in 2003.

If you received an overpayment of unemployment compensation in 2003 and you repaid any of it in 2003, subtract the amount you repaid from the total amount you received. Enter the result on line 19. Also, enter “Repaid” and the amount you repaid on the dotted line next to line 19. If, in 2003, you repaid unemployment compensation that you included in gross income in an earlier year, you may deduct the amount repaid on Schedule A, line 22. But if you repaid more than $3,000, see Repayments in Pub. 525 for details on how to report the repayment.

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

Use the worksheet on page 28 to see if any of your benefits are taxable.

Do not report on this line any income from self-employment or fees received as a notary public. Instead, you must use Schedule C, C-EZ, or F, even if you do not have any business expenses. Also, do not report on line 21 any nonemployee compensation shown on Form 1099-MISC. Instead, see the chart on page 18 to find out where to report that income.

Use line 21 to report any income not reported elsewhere on your return or other schedules. See the examples that begin below. List the type and amount of income. If necessary, show the required information on an attached statement. For more details, see Miscellaneous Income in Pub. 525.

Do not report any nontaxable amounts on line 21, such as any advance child tax credit payment you received; child support; money or property that was inherited, willed to you, or received as a gift; or life insurance proceeds received because of a person's death.

Examples of income to report on line 21 are:

Social Security Benefits Worksheet—Lines 20a and 20b

1.		Enter the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099				1.
2.		Enter one-half of line 1							2.
3.		Enter the total of the amounts from Form 1040, lines 7, 8a, 9a, 10 through 12, 13a, 14, 15b, 16b, 17 through 19, and 21							3.
4.		Enter the amount, if any, from Form 1040, line 8b							4.
5.		Add lines 2, 3, and 4							5.
6.		Enter the total of the amounts from Form 1040, lines 23, 24, and 27 through 32a, plus any amount you entered on the dotted line next to line 33							6.
7.		Is the amount on line 6 less than the amount on line 5?
			No.		None of your social security benefits are taxable.
			Yes. Subtract line 6 from line 5						7.
8.		If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2003, enter $25,000							8.
		Married filing separately and you lived with your spouse at any time in 2003, skip lines 8 through 15; multiply line 7 by 85% (.85) and enter the result on line 16. Then go to line 17
9.		Is the amount on line 8 less than the amount on line 7?
			No.		None of your social security benefits are taxable. You do not have to enter any amounts on line 20a or 20b of Form 1040. But if you are married filing separately and you lived apart from your spouse for all of 2003, enter -0- on line 20b. Be sure you entered “D” to the right of the word “benefits” on line 20a.
			Yes. Subtract line 8 from line 7						9.
10.		Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2003							10.
11.		Subtract line 10 from line 9. If zero or less, enter -0-							11.
12.		Enter the smaller of line 9 or line 10							12.
13.		Enter one-half of line 12							13.
14.		Enter the smaller of line 2 or line 13							14.
15.		Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-							15.
16.		Add lines 14 and 15							16.
17.		Multiply line 1 by 85% (.85)							17.
18.		Taxable social security benefits. Enter the smaller of line 16 or line 17							18.
	Enter the amount from line 1 above on Form 1040, line 20a. Enter the amount from line 18 above on Form 1040, line 20b.
			If part of your benefits are taxable for 2003 and they include benefits paid in 2003 that were for an earlier year, you may be able to reduce the taxable amount. See Pub. 915 for details.

[D]

You may have to pay an additional tax if you received a taxable distribution from a Coverdell ESA. See the Instructions for Form 5329.

You may have to pay an additional tax if you received qualified tuition program earnings that are included on line 21. See the Instructions for Form 5329.

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

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

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

For more details, use TeleTax topic 458 (see page 11).

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

If you made contributions to a traditional IRA for 2003, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have had earned income to do so. For IRA purposes, earned income includes certain alimony received. See Pub. 590 for details. A statement should be sent to you by June 1, 2004, that shows all contributions to your traditional IRA for 2003.

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

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

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

IRA Deduction Worksheet—Line 24

Your IRA

Spouse's IRA

1a.

Were you covered by a retirement plan (see above)?

1a.

Yes No

b.

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

1b.

Yes No

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

2.

Enter the amount shown below that applies to you.

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

Qualifying widow(er), enter $70,000

2a.

2b.

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

3.

Enter the amount from Form 1040, line 22

3.

4.

Enter total of the amounts from Form 1040, lines 23, 27 through 32a, plus any amount you entered on the dotted line next to line 33

4.

5.

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

5a.

5b.

6.

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

No.

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

Yes.

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

6a.

6b.

7.

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

7a.

7b.

8.

Enter your wages, and your spouses if filing jointly, and other earned income from Form 1040, minus any deductions on Form 1040, lines 28 and 30. Do not reduce wages by any loss from self-employment

8.

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

9.

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

9a.

9b.

10.

On line 10a, enter the smallest of line 7a, 8, or 9a. On line 10b, enter the smallest of line 7b, 8, or 9b. This is the most you can deduct. Add the amounts on lines 10a and 10b and enter the total on Form 1040, line 24. Or, if you want, you may deduct a smaller amount and treat the rest as a nondeductible contribution (see Form 8606)

10a.

10b.

You may be able to take the retirement savings contributions credit. See the instructions for line 48 on page 39.

[D]

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

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

Qualified Student Loan.   This is any loan you took out to pay the qualified higher education expenses for yourself, your spouse, or anyone who was your dependent when the loan was taken out. The person for whom the expenses were paid must have been an eligible student (defined on page 32). However, a loan is not a qualified student loan if (a) any of the proceeds were used for other purposes or (b) the loan was from either a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. To find out who is a related person, see Pub. 970.

Student Loan Interest Deduction Worksheet—Line 25

1.		Enter the total interest you paid in 2003 on qualified student loans (defined above). Do not enter more than $2,500						1.
2.		Enter the amount from Form 1040, line 22				2.
3.		Enter the total of the amounts from Form 1040, lines 23, 24, 27 through 32a, plus any amount you entered on the dotted line next to line 33				3.
4.		Subtract line 3 from line 2				4.
5.		Enter the amount shown below for your filing status.
	Single, head of household, or qualifying widow(er)—$50,000 Married filing jointly—$100,000					5.
6.		Is the amount on line 4 more than the amount on line 5?
		No.	Skip lines 6 and 7, enter -0- on line 8, and go to line 9.
		Yes.	Subtract line 5 from line 4			6.
7.		Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000						7.	.
8.		Multiply line 1 by line 7						8.
9.		Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on Form 1040, line 25. Do not include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.)						9.

[D]

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

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

An eligible student is a person who:

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

Tuition and Fees Deduction Worksheet—Line 26

1.	Enter the amount from Form 1040, line 22	1.
2.	Enter the total of the amounts from Form 1040, lines 23 through 25, 27 through 32a, plus any amount you entered on the dotted line next to line 33	2.
3.	Subtract line 2 from line 1. If the result is more than $65,000 ($130,000 if married filing jointly), You cannot take the deduction for tuition and fees	3.
4.	Tuition and fees deduction. Enter the total qualified tuition and fees (defined above) you paid in 2003. Do not enter more than $3,000. Also, enter this amount on Form 1040, line 26. Do not include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.)	4.

[D]

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

If you moved in connection with your job or business or started a new job, you may be able to take this deduction. But your new workplace must be at least 50 miles farther from your old home than your old home was from your old workplace. If you had no former workplace, your new workplace must be at least 50 miles from your old home. Use TeleTax topic 455 (see page 11) or see Form 3903.

If you were self-employed and owe self-employment tax, fill in Schedule SE to figure the amount of your deduction.

You may be able to deduct the amount you paid for health insurance for yourself, your spouse, and your dependents if either of the following applies.

The insurance plan must be established under your business. But if you were also eligible to participate in any subsidized health plan maintained by your or your spouse's employer for any month or part of a month in 2003, amounts paid for health insurance coverage for that month cannot be used to figure the deduction. For example, if you were eligible to participate in a subsidized health plan maintained by your spouse's employer from September 30 through December 31, you cannot use amounts paid for health insurance coverage for September through December to figure your deduction.

For more details, see Pub. 535.

If you qualify to take the deduction, use the worksheet below to figure the amount you can deduct.

If you were self-employed or a partner, you may be able to take this deduction. See Pub. 560 or, if you were a minister, Pub. 517.

The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged.

If you made payments to or for your spouse or former spouse under a divorce or separation instrument, you may be able to take this deduction. Use TeleTax topic 452 (see page 11) or see Pub. 504.

If you were partially blind as of December 31, 2003, you must get a statement certified by your eye doctor or registered optometrist that:

If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to this effect instead.

You must keep the statement for your records.

In most cases, your Federal income tax will be less if you take the larger of your:

If you checked the box on line 36b, your standard deduction is zero.

Standard Deduction

Most people can find their standard deduction by looking at the amounts listed under “All others” to the left of line 37 of Form 1040. But if you, or your spouse if filing jointly, can be claimed as a dependent on someone's 2003 return or you checked any box on line 36a, use the worksheet below or the chart on page 35, whichever applies, to figure your standard deduction. Also, if you checked the box on line 36b, your standard deduction is zero, even if you were born before January 2, 1939, or were blind.

Standard Deduction Worksheet for Dependents—Line 37

Keep for your Records

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

1.		Add $250 to your earned income*. Enter the total				1.
2.		Minimum standard deduction				2.	750.00
3.		Enter the larger of line 1 or line 2				3.
4.		Enter the amount shown below for your filing status.
	Single or married filing separately—$4,750 Married filing jointly or qualifying widow(er)—$9,500 Head of household—$7,000				.	4.
5.		Standard deduction.
	a.	Enter the smaller of line 3 or line 4. If born after January 1, 1939, and not blind, stop here and enter this amount on Form 1040, line 37. Otherwise, go to line 5b				5a.
	b.	If born before January 2, 1939, or blind, multiply the number on Form 1040, line 36a, by $950 ($1,150 if single or head of household)				5b.
	c.	Add lines 5a and 5b. Enter the total here and on Form 1040, line 37				5c.
* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 28.

Electing To Itemize for State Tax or Other Purposes

If you itemize even though your itemized deductions are less than your standard deduction, enter “IE” on the dotted line next to line 37.

Standard Deduction Chart for People Who Were Born Before January 2, 1939, or Were Blind—Line 37

Do not use this chart if someone can claim you, or your spouse if filing jointly, as a dependent. Instead, use the worksheet on page 34.
Enter the number from the box on line 36a of Form 1040				▶				Do not use the number of exemptions from line 6d.
IF your filing status is . . .			AND the number in the box above is . . .						THEN your standard deduction is . . .
Single				1 2						$5,900 7,050
Married filing jointly or Qualifying widow(er)				1 2 3 4						$10,450 11,400 12,350 13,300
Married filing separately				1 2 3 4						$5,700 6,650 7,600 8,550
Head of household				1 2						$8,150 9,300

Deduction for Exemptions Worksheet—Line 39

Keep for your Records

1.		Is the amount on Form 1040, line 35, more than the amount shown on line 4 below for your filing status?
		No.		Multiply $3,050 by the total number of exemptions claimed on Form 1040, line 6d, and enter the result on line 39.
		Yes.	Continue
2.		Multiply $3,050 by the total number of exemptions claimed on Form 1040, line 6d								2.
3.		Enter the amount from Form 1040, line 35						3.
4.		Enter the amount shown below for your filing status.
	Single—$139,500 Married filing jointly or qualifying widow(er)—$209,250 Married filing separately—$104,625 Head of household—$174,400							4.
5.		Subtract line 4 from line 3. If the result is more than $122,500 ($61,250 if married
		filing separately), You cannot take a deduction for exemptions						5.
6.		Divide line 5 by $2,500 ($1,250 if married filing separately). If the result is not a whole number, increase it to the next higher whole number (for example, increase 0.0004 to 1)						6.
7.		Multiply line 6 by 2% (.02) and enter the result as a decimal								7.	.
8.		Multiply line 2 by line 7								8.
9.		Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form 1040, line 39								9.

Do you want the IRS to figure your tax for you?

Qualified Dividends and Capital Gain Tax Worksheet.   If you received qualified dividends or capital gain distributions but you are not required to file Schedule D, use the worksheet on page 37 to figure your tax.

Qualified Dividends and Capital Gain Tax Worksheet—Line 41

1.		Enter the amount from Form 1040, line 40							1.
2.		Enter the amount from Form 1040, line 9b			2.
3.		Enter the amount from Form 1040, line 13a			3.
4.		Add lines 2 and 3			4.
5.		If you are claiming investment interest expense on Form 4952, enter the amount from line 4g of that form. Otherwise, enter -0-			5.
6.		Subtract line 5 from line 4. If zero or less, enter -0-							6.
7.		Subtract line 6 from line 1. If zero or less, enter -0-							7.
8.		Enter the smaller of:
		The amount on line 1 or
		$56,800 if married filing jointly or qualifying widow(er),							8.
		$28,400 if single or married filing separately, or
		$38,050 if head of household.
9.		Is the amount on line 7 equal to or more than the amount on line 8?
		Yes.	Skip lines 9 through 15; go to line 16 and check the "No" box.
		No.	Enter the amount from line 7						9.
10.		Subtract line 9 from line 8							10.
11.		Add the amounts from Form 1040, line 13b, and line 2 above			11.
12.		Enter the smaller of line 10 or line 11							12.
13.		Multiply line 12 by 5% (.05)										13.
14.		Subtract line 12 from line 10. If zero, go to line 16							14.
15.		Multiply line 14 by 10% (.10)										15.
16.		Are the amounts on lines 6 and 10 the same?
		Yes.	Skip lines 16 through 25; go to line 26.
		No.	Enter the smaller of line 1 or line 6						16.
17.		Enter the amount from line 10 (if line 10 is blank, enter -0-)							17.
18.		Subtract line 17 from line 16							18.
19.		Add the amounts from Form 1040, line 13b, and line 2 above			19.
20.		Enter the amount from line 12 (if line 12 is blank, enter -0-)			20.
21.		Subtract line 20 from line 19			21.
22.		Enter the smaller of line 18 or line 21							22.
23.		Multiply line 22 by 15% (.15)										23.
24.		Subtract line 22 from line 18. If zero, go to line 26							24.
25.		Multiply line 24 by 20% (.20)										25.
26.		Figure the tax on the amount on line 7. Use the Tax Table or Tax Rate Schedules, whichever applies										26.
27.		Add lines 13, 15, 23, 25, and 26										27.
28.		Figure the tax on the amount on line 1. Use the Tax Table or Tax Rate Schedules, whichever applies										28.
29.		Tax on all taxable income. Enter the smaller of line 27 or line 28 here and on Form 1040, line 41										29.

[D]

Use the worksheet below to see if you should fill in Form 6251.

Exception.   Fill in Form 6251 instead of using the worksheet below if you claimed or received any of the following items.

• Accelerated depreciation.
• Stock by exercising an incentive stock option and you did not dispose of the stock in the same year.
• Tax-exempt interest from private activity bonds.
• Intangible drilling, circulation, research, experimental, or mining costs.
• Amortization of pollution-control facilities or depletion.
• Income or (loss) from tax-shelter farm activities or passive activities.
• Income from long-term contracts not figured using the percentage-of-completion method.
• Interest paid on a home mortgage not used to buy, build, or substantially improve your home.
• Investment interest expense reported on Form 4952.
• Net operating loss deduction.
• Alternative minimum tax adjustments from an estate, trust, electing large partnership, or cooperative.
• Section 1202 exclusion.

  

  Form 6251 should be filled in for a child who was under age 14 at the end of 2003 if the child's adjusted gross income from Form 1040, line 35, exceeds the child's earned income by more than $5,600.

If you paid income tax to a foreign country, you may be able to take this credit. Generally, you must complete and attach Form 1116 to do so.

You may be able to take this credit if you paid someone to care for your child under age 13 or your dependent or spouse who could not care for himself or herself. For details, use TeleTax topic 602 (see page 11) or see Form 2441.

You may be able to take this credit if by the end of 2003 (a) you were age 65 or older or (b) you retired on permanent and total disability and you had taxable disability income. But you usually cannot take the credit if the amount on Form 1040, line 35, is $17,500 or more ($20,000 or more if married filing jointly and only one spouse is eligible for the credit; $25,000 or more if married filing jointly and both spouses are eligible; $12,500 or more if married filing separately). See Schedule R and its instructions for details.

If you (or your dependent) paid qualified expenses in 2003 for yourself, your spouse, or your dependent to enroll in or attend an eligible educational institution, you may be able to take an education credit. See Form 8863 for details. However, you cannot take an education credit if any of the following apply.

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

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

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

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

For more details, use TeleTax topic 610 (see page 11) or see Form 8880.

This credit is for people who have a qualifying child (defined below). It is in addition to the credit for child and dependent care expenses on Form 1040, line 45, and the earned income credit on Form 1040, line 63.

1. Are you excluding income from Puerto Rico or are you filing any of the following forms?

You must use Pub. 972 to figure your credit.

2. Is the amount on Form 1040, line 35, more than the amount shown below for your filing status?

You must use Pub. 972 to figure your credit.

3. Are you claiming any of the following credits?

Use the worksheet on page 41 to figure your child tax credit. You must use
Pub. 972 to figure your child tax credit. You will also need the form(s) listed above for any credit(s) you are claiming.

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

See the Instructions for Form 8839 for details.

Include the following credits on line 52 and check the appropriate box(es). If box c is checked, also enter the form number, if applicable. To find out if you can take the credit, see the form or publication indicated.

If you received tips of $20 or more in any month and you did not report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips. You must also pay this tax if your Form(s) W-2 shows allocated tips that you are including in your income on Form 1040, line 7.

To figure the tax, use Form 4137. To pay the RRTA tax, contact your employer. Your employer will figure and collect the tax.

You may be charged a penalty equal to 50% of the social security and Medicare tax due on tips you received but did not report to your employer.

If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329.

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

If any of the following apply, see
Schedule H and its instructions to find out if you owe these taxes.

For item 1, do not count amounts paid to an employee who was under age 18 at any time in 2003 and was a student.

Include in the total on line 60 any of the following taxes. To find out if you owe the tax, see the form or publication indicated. On the dotted line next to line 60, enter the amount of the tax and identify it as indicated.

Add the amounts shown as Federal income tax withheld on your Forms W-2, W-2G, and 1099-R. Enter the total on line 61. The amount withheld should be shown in box 2 of Form W-2 or W-2G, and in box 4 of Form 1099-R. If line 61 includes amounts withheld as shown on Form 1099-R, attach the Form 1099-R to the front of your return.

If you received a 2003 Form 1099 showing Federal income tax withheld on dividends, interest income, unemployment compensation, social security benefits, or other income you received, include the amount withheld in the total on line 61. This should be shown in box 4 of the Form 1099 or box 6 of Form SSA-1099.

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

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

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

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

1. If, in 2003:

You cannot take the credit.

2. Do you, and your spouse if filing a joint return, have a social security number that allows you to work or is valid for EIC purposes (see page 47)? You cannot take the credit.
Put “No” on the dotted line next to line 63.

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

4. Are you filing Form 2555 or 2555-EZ (relating to foreign earned income)? You cannot take the credit.

5. Were you a nonresident alien for any part of 2003? See Nonresident Aliens on page 47. Go to Step 2.

1. Add the amounts from
Form 1040:

2. Is your investment income more than $2,600? Skip question 3; go to question 4.

3. Are you filing Form 4797 (relating to sales of business property)? See Form 4797 Filers on page 46. You cannot take the credit.

4. Do any of the following apply for 2003?

You must use Worksheet 1 in Pub. 596 to see if you can take the credit. To get Pub. 596, see page 7.

5. Did a child live with you in 2003? Go to Step 3
on page 45. Go to Step 4 on
page 45.

Son, daughter, adopted child, stepchild, or a descendant of any of them (for example, your grandchild)

or

Brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew), whom you cared for as you would your own child

or

Foster child (any child placed with you by an authorized placement agency whom you cared for as you would your own child)

was at the end of 2003...

Under age 19

or

Under age 24 and a student (see page 47)

or

Any age and permanently and totally disabled (see page 47)

who...

Lived with you in the United States for more than half of 2003. If the child did not live with you for the required time, see Exception to “Time Lived With You” Condition on page 46.

Note. If the child was married, see page 47.

1. Look at the qualifying child conditions above. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2003? You cannot take the credit. Put “No” on
the dotted line next to
line 63.

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

3. Does the child meet the conditions to be a qualifying child of any other person (other than your spouse if filing a joint return) for 2003? See Qualifying Child of More Than One Person on
page 47. This child is your qualifying child. The child must have a valid social
security number as defined on page 47 unless the child was born and died in 2003. Skip Step 4; go to Step 5 on page 46.

1. Look at the qualifying child conditions in Step 3. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2003? You cannot take the credit. Put “No” on
the dotted line next to
line 63.

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

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

4. Was your home, and your spouse's if filing a joint return, in the United States for more than half of 2003? Members of the military stationed outside the United States, see page 47 before you answer. Go to Step 5
on page 46. You cannot take the credit. Put “No” on the dotted line next to line 63.

1. Are you filing Schedule SE because you were a member of the clergy or you had church employee income of $108.28 or more? See Clergy or Church Employees, whichever applies, on this page.

2. Figure earned income:

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

3. Were you self-employed, or are you filing Schedule SE because you were a member of the clergy or you had church employee income, or are you filing Schedule C or C-EZ as a statutory employee? Skip question 4 and Step 6; go to Worksheet B on
page 49.

4. If you have:

Go to Step 6. You cannot take the credit.

1. Do you want the IRS to figure the credit for you? See Credit
Figured by the IRS on this page. Go to Worksheet A on page 48.

If you, or your spouse if filing a joint return, had more than one employer for 2003 and total wages of more than $87,000, too much social security or tier 1 railroad retirement (RRTA) tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $5,394. But if any one employer withheld more than $5,394, you must ask that employer to refund the excess to you. You cannot claim it on your return. Figure this amount separately for you and your spouse.

You cannot claim a refund for excess tier 2 RRTA tax on Form 1040. Instead, use Form 843.

For more details, see Pub. 505.

If you filed Form 4868 to get an automatic extension of time to file Form 1040, enter any amount you paid with that form or by electronic funds withdrawal or credit card. If you paid by credit card, do not include on line 66 the convenience fee you were charged. Also, include any amounts paid with Form 2688 or 2350.

Check the box(es) on line 67 to report any credit from Form 2439, 4136, or 8885.

If line 69 is under $1, we will send a refund only on written request.

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

If the amount you overpaid is large, you may want to decrease the amount of income tax withheld from your pay by filing a new Form W-4. See Income Tax Withholding and Estimated Tax Payments for 2004 on page 60.

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

If you file a joint return and fill in lines 70b through 70d, you are appointing your spouse as an agent to receive the refund. This appointment cannot be changed later.

The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Otherwise, the direct deposit will be rejected and a check sent instead. On the sample check on page 57, the routing number is 250250025.

Your check may state that it is payable through a financial institution different from the one at which you have your checking account. If so, do not use the routing number on that check. Instead, contact your financial institution for the correct routing number to enter on line 70b.

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

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

Enter on line 71 the amount, if any, of the overpayment on line 69 you want applied to your 2004 estimated tax. We will apply this amount to your account unless you attach a statement requesting us to apply it to your spouse's account. Include your spouse's social security number in the attached statement.

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

You do not have to pay if line 72 is under $1.

Include any estimated tax penalty from line 73 in the amount you enter on line 72.

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

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

Link2Gov Corporation
1-888-PAY-1040 ^SM (1-888-729-1040)
1-888-658-5465 (Customer Service)
www.PAY1040.com

Official Payments Corporation
1-800-2PAY-TAX ^SM (1-800-272-9829)
1-877-754-4413 (Customer Service)
www.officialpayments.com

  

  You may need to (a) increase the amount of income tax withheld from your pay by filing a new Form W-4 or (b) make estimated tax payments for 2004. See Income Tax Withholding and Estimated Tax Payments for 2004 on page 60.

If you cannot pay the full amount shown on line 72 when you file, you may ask to make monthly installment payments. You may have up to 60 months to pay. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2004, even if your request to pay in installments is granted. You must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan.

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

You may owe this penalty if:

For most people, the “tax shown on your return” is the amount on line 60 minus the total of any amounts shown on lines 63 and 65 and Forms 8828, 4137, 4136, 5329 (Parts III, IV, V, VI, and VII only), and 8885. When figuring the amount on line 60, include the amount on line 59 only if line 61 is more than zero or you would owe the penalty even if you did not include those taxes. But if you entered an amount on Schedule H, line 7, include the total of that amount plus the amount on Form 1040,
line 59.

If your 2002 adjusted gross income was over $150,000 (over $75,000 if your 2003 filing status is married filing separately), item 2 above applies only if the total of lines 61, 62, and 64 on your 2003 return is at least 110% of the tax liability shown on your 2002 return. This rule does not apply to farmers and fishermen.

Figuring the Penalty

If the Exception above does not apply and you choose to figure the penalty yourself, see Form 2210 (or 2210-F for farmers and fishermen) to find out if you owe the penalty. If you do, you can use the form to figure the amount.

Enter the penalty on line 73. Add the penalty to any tax due and enter the total on line 72. If you are due a refund, subtract the penalty from the overpayment you show on line 69. Do not file Form 2210 with your return unless Form 2210 indicates that you must do so. Instead, keep it for your records.

Because Form 2210 is complicated, if you want to, you can leave line 73 blank and the IRS will figure the penalty and send you a bill. We will not charge you interest on the penalty if you pay by the date specified on the bill. If your income varied during the year, the annualized income installment method may reduce the amount of your penalty. But you must file Form 2210 because the IRS cannot figure your penalty under this method. See the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.