Form 1040 U.S. Individual Income Tax Return 2005. Summary: This is an example of Form 1040 (2005) completed as pertains to the example in the text. The completed line items are:

Under “Label Here”:

“Your first name and initial” field contains Glenn M.

“Last name” field contains Johnson

“Your social security number” field contains 765-00-4321

“Home address (number and street). If you have a P.O. box, see page 16” field contains 5603 East Main Street

“City, town or post office, state, and ZIP code. If you have a foreign address, see page 16.” field contains Anytown, Virginia 20000

Under “Presidential Election Campaign”:

“Do you, or your spouse if filing a joint return, want $3 to go to this fund? You--Yes” checkbox checked

Under “Filing Status”:

“Single” checkbox checked

Under “Exemptions”:

“6a. Yourself. If someone can claim you as a dependent, do not check box 6a” checkbox checked

“Number of boxes checked on 6a and 6b” field contains 1

“6d. Total number of exemptions claimed” field contains 1

Under “Income”:

“7. Wages, salaries, tips, etcetera. Attach Form(s) W-2” field contains 1,225

“8a. Taxable interest. Attach Schedule B if required” field contains 425

“12. Business income or (loss). Attach Schedule C or C-EZ” field contains negative 5,000

“13. Capital gain or (loss). Attach Schedule D if required. If not required, check here” field contains 1,000 Footnote: Net capital gain ($2,000 gain less $1,000 loss)

“22. Add the amounts in the far right column for lines 7 through 21. This is your total income” field contains negative 2,350

Under “Adjusted Gross Income”:

“37. Subtract line 36 from line 22. This is your adjusted gross income” field contains negative 2,350