| Instructions for Form 1040-C |
2006 Tax Year |
Instructions for Form 1040-C - Notices
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Disclosure, Privacy Act, and Paperwork Reduction Act Notice.
We ask for the information on this form to carry out the Internal Revenue laws of the United States. Sections 6001, 6011,
6012(a), 6851, and their
regulations require that you give us the information. We need it to ensure that you are complying with these laws and to allow
us to figure and
collect the right amount of tax. Section 6109 requires paid return preparers to provide their identifying number.
Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows
or requires the Internal
Revenue Service to disclose or give the information shown on your tax return to others as described in the Code. For example,
we may disclose your tax
information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District
of Columbia, U.S.
commonwealths or possessions, and certain foreign governments to carry out their tax laws. We may also disclose this information
to other countries
under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and
intelligence agencies to
combat terrorism. If you do not give the information asked for, you may be charged penalties and, in certain cases, you may
be subject to criminal
prosecution.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless
the form displays a valid
OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may
become material in the
administration of any Internal Revenue law.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time
is: Recordkeeping,
2 hr., 4 min.; Learning about the law or the form, 45 min.; Preparing the form, 2 hr., 20 min.; and Copying,
assembling, and sending the form to the IRS, 59 min.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would
be happy to hear from
you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution
Ave. NW, IR-6406,
Washington, DC 20224. Do not send the tax form to this address. Instead, see How To Get the Certificate on page 3.
Deduction for Exemptions Worksheet and 2007 Tax Rate Schedules. Summary: First is an example of the worksheet used to calculate the taxpayer deduction for exemptions to be entered on Schedule
D (Form
1040C), line 4 or line 12. Following the worksheet are the 2007 Tax Rate Schedules (Groups I and II). The line items to be
completed for the worksheet
and all text presented in the schedules are:
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Deduction for Exemptions Worksheet:
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“1. Is the amount on Schedule D, line 1 or line 9, more than the amount shown on line 4 below for your filing status?”
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“No. Stop. Multiply $3,400 by the total number of exemptions claimed on Form 1040-C, line 14d, and enter the result on Schedule
D, line 4 or
line 12, whichever applies.”
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“Yes. Go to line 2.”
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“2. Multiply $3,400 by the total number of exemptions claimed on Form 1040-C, line 14d” field
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“3. Enter the amount from Schedule D, line 1 or line 9” field
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“4. Enter the amount shown below for your filing status.” field
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“Single, enter $156,400”
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“Married filing jointly or Qualifying widow(er), enter $234,600”
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“Married filing separately, enter $117,300”
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“Head of household, enter $195,500”
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“5. Subtract line 4 from line 3 and enter here.” field
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“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)” field
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“7. Multiply line 6 by 2% (.02) and enter the result as a decimal” field
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“8. Multiply line 2 by line 7” field
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“9. Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Schedule D, line 4 or line 12, whichever
applies” field
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2007 Tax Rate Schedules (Groups I and II):
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Caution. Do not use these Tax Rate Schedules to figure your 2006 taxes. Use only to figure your 2007taxes.
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Schedule X--Single Taxpayers (Groups I and II)
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If the amount on Schedule D, line 5 or 13 is Over $0, but not over $7,825; The tax is 10% of the amount over $0
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If the amount on Schedule D, line 5 or 13, is Over 7,825, but not over 31,850; The tax is $782.50 plus 15% of the amount over
7,825
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If the amount on Schedule D, line 5 or 13, is Over 31,850, but not over 77,100; The tax is 4,386.25 plus 25% of the amount
over
31,850
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If the amount on Schedule D, line 5 or 13, is Over 77,100, but not over 160,850; The tax is 15,698.75 plus 28% of the amount
over
77,100
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If the amount on Schedule D, line 5 or 13, is Over 160,850, but not over 349,700; The tax is 39,148.75 plus 33% of the amount
over
160,850
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If the amount on Schedule D, line 5 or 13, is Over 349,700; The tax is 101,469.25 plus 35% of the amount over
349,700
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Schedule Z--Head of Household (Group I only)
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If the amount on Schedule D, line 5 is Over $0, but not over $11,200; The tax is 10% of the amount over $0
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If the amount on Schedule D, line 5, is Over 11,200, but not over 42,650; The tax is $1,120.00 plus 15% of the amount over
11,200
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If the amount on Schedule D, line 5, is Over 42,650, but not over 110,100; The tax is 5837.50 plus 25% of the amount over
42,650
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If the amount on Schedule D, line 5, is Over 110,100, but not over 178,350; The tax is 22,700.00 plus 28% of the amount over
110,100
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If the amount on Schedule D, line 5, is Over 178,350, but not over 349,700; The tax is 41,810.00 plus 33% of the amount over
178,350
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If the amount on Schedule D, line 5, is Over 349,700; The tax is 98,355.50 plus 35% of the amount over
349,700
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Schedule Y--Married Taxpayers and Qualifying Widows and Widowers:
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Married Filing Joint Return (Group I only) and Qualifying Widows and Widowers (Groups I and II)
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If the amount on Schedule D, line 5 or 13, is Over $0, but not over $15,650; The tax is 10% of the amount over $0
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If the amount on Schedule D, line 5 or 13, is Over 15,650, but not over 63,700; The tax is $1,565.00 plus 15% of the amount
over
15,650
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If the amount on Schedule D, line 5 or 13, is Over 63,700, but not over 128,500; The tax is 8,772.00 plus 25% of the amount
over
63,700
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If the amount on Schedule D, line 5 or 13, is Over 128,500, but not over 195,850; The tax is 24,972.50 plus 28% of the amount
over
128,500
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If the amount on Schedule D, line 5 or 13, is Over 195,850, but not over 349,700; The tax is 43,830.50 plus 33% of the amount
over
195,850
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If the amount on Schedule D, line 5 or 13, is Over 349,700; The tax is 94,601.00 plus 35% of the amount over
349,700
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Married Filing Separate Return (Groups I and II)
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If the amount on Schedule D, line 5 or 13, is Over $0, but not over $7,825; The tax is 10% of the amount over $0
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If the amount on Schedule D, line 5 or 13, is Over 7,825, but not over 31,850; The tax is $782.50 plus 15% of the amount over
7,825
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If the amount on Schedule D, line 5 or 13, is Over 31,850, but not over 64,250; The tax is 4,386.25 plus 25% of the amount
over
31,850
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If the amount on Schedule D, line 5 or 13, is Over 64,250, but not over 97,925; The tax is 12,486.25 plus 28% of the amount
over
64,250
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If the amount on Schedule D, line 5 or 13, is Over 97,925, but not over 174,850; The tax is 21,915.25 plus 33% of the amount
over
97,925
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If the amount on Schedule D, line 5 or 13, is Over 174,850; The tax is 47,300.50 plus 35% of the amount over
174,850
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