Other Taxes
Line 59
Unreported Social Security and Medicare Tax from Forms 4137 and 8919
Enter the total of any taxes from Form 4137 and Form 8919. Check the appropriate box(es).
Form 4137. 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 social security and Medicare tax, use Form 4137. If you owe RRTA tax, contact your employer. Your employer will figure and collect the RRTA tax.
CAUTION: 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.
Form 8919. If you are an employee who received wages from an employer who did not withhold social security and Medicare tax from your wages, use Form 8919 to figure your share of the unreported tax. Include on line 59 the amount from line 13 of Form 8919. Include the amount from line 6 of Form 8919 on Form 1040, line 7.
Line 60
Additional Tax on IRAs, Other Qualified Retirement Plans, etc.
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.
You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution was not rolled over in a qualified rollover contribution.
Excess contributions were made to your IRAs, Coverdell education savings accounts (ESAs), Archer MSAs, or health savings accounts.
You received taxable distributions from Coverdell ESAs or qualified tuition programs.
You were born before July 1, 1936, and did not take the minimum required distribution from your IRA or other qualified retirement plan.
Line 62
Household Employment Taxes
If any of the following apply, see
Schedule H and its instructions to find out if you owe these taxes.
You paid any one household employee (defined below) cash wages of $1,500 or more in 2007. Cash wages include wages paid by check, money order, etc.
You withheld federal income tax during 2007 at the request of any household employee.
You paid total cash wages of $1,000 or more in any calendar quarter of 2006 or 2007 to household employees.
TIP: For item (1), do not count amounts paid to an employee who was under age 18 at any time in 2007 and was a student.
Household employee. Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, maids, yard workers, and similar domestic workers.
Line 63
Total Tax
Include in the total on line 63 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 63, enter the amount of the tax and identify it as indicated.
Additional tax on health savings account distributions (see Form 8889, Part II). Identify as “ HSA. ”
Additional tax on Archer MSA distributions (see Form 8853). Identify as “ MSA. ”
Additional tax on Medicare Advantage MSA distributions (see Form 8853). Identify as “ Med MSA. ”
Recapture of the following credits.
Investment credit (see Form 4255). Identify as “ ICR. ”
Low-income housing credit (see Form 8611). Identify as “ LIHCR. ”
Qualified electric vehicle credit (see Form 8834). Identify as “ QEVCR. ”
Indian employment credit (see Form 8845). Identify as “ IECR. ”
New markets credit (see Form 8874). Identify as “ NMCR. ”
Credit for employer-provided child care facilities (see Form 8882). Identify as “ ECCFR. ”
Alternative motor vehicle credit (see Form 8910). Identify as “ AMVCR. ”
Alternative fuel vehicle refueling property credit (see Form 8911). Identify as “ ARPCR. ”
Recapture of federal mortgage subsidy. If you sold your home in 2007 and it was financed (in whole or in part) from the proceeds of any tax-exempt qualified mortgage bond or you claimed the mortgage interest credit, see Form 8828. Identify as “ FMSR. ”
Section 72(m)(5) excess benefits tax (see Pub. 560). Identify as "Sec. 72(m)(5)."
Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with codes A and B or M and N. Identify as “ UT. ”
Golden parachute payments. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in box 12 of Form W-2 with code K. If you received a Form 1099-MISC, the tax is 20% of the EPP shown in box 13. Identify as “ EPP. ”
Tax on accumulation distribution of trusts (see Form 4970). Identify as “ ADT. ”
Excise tax on insider stock compensation from an expatriated corporation. You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. See section 4985. Identify as “ ISC. ”
Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. This income should be shown in box 12 of Form W-2 with code Z, or in box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as “ NQDC. ”
Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Identify as “ 453(l)(3). ”
Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Identify as “ 453A(c). ”
Payments
Line 64
Federal Income Tax Withheld
Add the amounts shown as federal income tax withheld on your Forms W-2, W-2G, and 1099-R. Enter the total on line 64. The amount withheld should be shown in box 2 of Form W-2 or W-2G, and in box 4 of Form 1099-R. Attach Forms W-2G and 1099-R to the front of your return if federal income tax was withheld.
If you received a 2007 Form 1099 showing federal income tax withheld on dividends, taxable or tax-exempt interest income, unemployment compensation, social security benefits, or other income you received, include the amount withheld in the total on line 64. This should be shown in box 4 of Form 1099 or box 6 of Form SSA-1099.
Line 65
2007 Estimated Tax Payments
Enter any estimated federal income tax payments you made for 2007. Include any overpayment from your 2006 return that you applied to your 2007 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 2007. 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 2007 or in 2008 before filing a 2007 return.
Divorced Taxpayers
If you got divorced in 2007 and you made joint estimated tax payments with your former spouse, enter your former spouse's SSN in the space provided on the front of
Form 1040. If you were divorced and remarried in 2007, enter your present spouse's SSN in the space provided on the front of Form 1040. Also, under the heading Payments to the left of line 65, enter your former spouse's SSN, followed by “ DIV. ”
Name Change
If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of Form 1040. On the statement, explain all the payments you and your spouse made in 2007 and the name(s) and SSN(s) under which you made them.
Lines 66a and 66b— Earned Income Credit (EIC)
What Is the EIC?
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.
To Take the EIC:
Follow the steps below.
Complete the worksheet that applies to you or let the IRS figure the credit for you.
If you have a qualifying child, complete and attach Schedule EIC.
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. See Form 8862, who must file, on page 47. You may also have to pay penalties.
Step 1. All Filers
1. If, in 2007:
2 children lived with you, is the amount on Form 1040, line 38, less than $37,783 ($39,783 if married filing
jointly)?
1 child lived with you, is the amount on Form 1040, line 38, less than $33,241 ($35,241 if married filing jointly)?
No children lived with you, is the amount on Form 1040, line 38, less than $12,590 ($14,590 if married filing
jointly)?
| Yes. Continue |
| No. |
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)?
| Yes. Continue |
| No. |
You cannot take the credit.
Enter “ No ” on the dotted line next to line 66a.
3. Is your filing status married filing separately?
| Yes. |
You cannot take the credit.
| No. |
Go to question 4.
4. Are you filing Form 2555 or 2555-EZ (relating to foreign earned income)?
| Yes. |
You cannot take the credit.
| No. Continue |
5. Were you or your spouse a nonresident alien for any part of 2007?
| Yes. |
See Nonresident aliens on page 47.
| No. |
Go to Step 2.
Step 2. Investment Income
1. Add the amounts from
Form 1040:
| Line 8a | ||||
| Line 8b | + | |||
| Line 9a | + | |||
| Line 13* | + | |||
| Investment Income | = | |||
| *If line 13 is a loss, enter -0-. | ||||
2. Is your investment income more than $2,900?
| Yes. Continue |
| No. |
Skip question 3; go to question 4.
3. Are you filing Form 4797 (relating to sales of business property)?
| Yes. |
See Form 4797 filers on page 47.
| No. |
You cannot take the credit.
4. Do any of the following apply for 2007?
You are filing Schedule E.
You are reporting income or a loss from the rental of personal property not used in a trade or business.
You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends).
| Yes. |
You must use Worksheet 1 in Pub. 596 to see if you can take the credit.
| No. |
Go to Step 3.
Continued from page 44
Step 3. Qualifying Child
| A qualifying child for the EIC is a child who is your... | ||
| Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew) | ||
| was ... | ||
| Under age 19 at the end of 2007 | ||
| or | ||
| Under age 24 at the end of 2007 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 2007. If the child did not live with you for the required time, see Exception to time lived with you on page 47. |
||
| If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing a joint return) for 2007, or the child was married, see page 47. | ||
1. Do you have at least one child who meets the conditions to be your qualifying child?
| Yes. |
The child must have a valid social security number as defined on page 47 unless the child was born and died in 2007. Go to question 2.
| No. |
Skip question 2; go to Step 4.
2. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2007?
| Yes. |
You cannot take the credit. Enter “ No ” on the dotted line next to line 66a.
| No. |
Skip Step 4; go to Step 5 on page 46.
Step 4. Filers Without a Qualifying Child
1. Is the amount on Form 1040, line 38, less than $12,590 ($14,590 if married filing jointly)?
| Yes. Continue |
| No. |
You cannot take the credit.
2. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2007?
| Yes. |
You cannot take the credit. Enter “ No ” on
the dotted line next to line 66a.
3. Can you, or your spouse if filing a joint return, be claimed as a dependent on someone else's 2007 tax return?
| Yes. |
You cannot take the credit.
| No. Continue |
4. Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2007?
| Yes. Continue |
| No. |
You cannot take the credit.
5. Was your home, and your spouse's if filing a joint return, in the United States for more than half of 2007? Members of the military stationed outside the United States, see page 47 before you answer.
| Yes. |
Go to Step 5
on page 46.
| No. |
You cannot take the credit. Enter “ No ” on the dotted line next to line 66a.
Continued from page 45
Step 5. Earned Income
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?
| Yes. |
See Clergy or Church employees, whichever applies, on this page.
| No. Continue |
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 received for work performed while an inmate in a penal institution (enter “ PRI ” and the amount subtracted on the dotted line next to Form 1040, line 7). |
||||
| • | Amount received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “ DFC ” and the amount subtracted on the dotted line next to Form 1040, line 7). This amount may be shown in box 11 of 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. | - |
|||
| Add all of your nontaxable combat pay if you elect to include it in earned income. Also enter this amount on Form 1040, line 66b. See Combat pay, nontaxable on this page. | + | ||||
Electing to include nontaxable combat pay may increase or decrease your EIC. Figure the credit with and without your nontaxable combat pay before making the election. |
|||||
| Earned Income = | |||||
3. Were you self-employed at any time in 2007, 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?
| Yes. |
Skip question 4 and Step 6; go to Worksheet B on
page 49.
| No. Continue |
4. If you have:
2 or more qualifying children, is your earned income less than $37,783 ($39,783 if married filing jointly)?
1 qualifying child, is your earned income less than $33,241 ($35,241 if married filing jointly)?
No qualifying children, is your earned income less than $12,590 ($14,590 if married filing jointly)?
| Yes. |
Go to Step 6.
| No. |
You cannot take the credit.
Step 6. How To Figure the Credit
1. Do you want the IRS to figure the credit for you?
| Yes. |
See Credit figured by the IRS below.
| No. |
Go to Worksheet A on page 48.
Definitions and Special Rules
(listed in alphabetical order)
Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
Church employees. Determine how much of the amount on Form 1040, line 7, was also reported on Schedule SE, line 5a. Subtract that amount from the amount on Form 1040, line 7, and enter the result in the first space of Step 5, line 2. Be sure to answer “ Yes ” to question 3 in Step 5.
Clergy. The following instructions apply to ministers, members of religious orders who have not taken a vow of poverty, and Christian Science practitioners. If you are filing Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on Form 1040, line 7:
Enter “ Clergy ” on the dotted line next to Form 1040, line 66a.
Determine how much of the amount on Form 1040, line 7, was also reported on Schedule SE, line 2.
Subtract that amount from the amount on Form 1040,
line 7. Enter the result in the first space of Step 5, line 2.Be sure to answer “ Yes ” to question 3 in Step 5.
Combat pay, nontaxable. If you were a member of the U.S. Armed Forces who served in a combat zone, certain pay is excluded from your income. See Combat Zone Exclusion in Pub. 3. You can elect to include this pay in your earned income when figuring the EIC. The amount of your nontaxable combat pay should be shown in box 12 of Form(s) W-2 with code Q. If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election.
Credit figured by the IRS. To have the IRS figure your EIC:
Enter “ EIC ” on the dotted line next to Form 1040, line 66a.
Be sure you enter the nontaxable combat pay you elect to include in earned income on Form 1040, line 66b. See Combat pay, nontaxable above.
If you have a qualifying child, complete and attach Schedule EIC. If your EIC for a year after 1996 was reduced or disallowed, see Form 8862, who must file on page 47.
Exception to time lived with you. A child is considered to have lived with you for all of 2007 if the child was born or died in 2007 and your home was this child's home for the entire time he or she was alive in 2007. Temporary absences for special circumstances, such as for school, vacation, medical care, military service, or detention in a juvenile facility, count as time lived at home. Also see Kidnapped child on page 17 or Members of the military below.
Form 4797 filers. If the amount on Form 1040, line 13, includes an amount from Form 4797, you must use Worksheet 1 in Pub. 596 to see if you can take the EIC. Otherwise, stop; you cannot take the EIC.
Form 8862, who must file. You must file Form 8862 if your EIC for a year after 1996 was reduced or disallowed for any reason other than a math or clerical error. But do not file Form 8862 if either of the following applies.
You filed Form 8862 for another year, the EIC was allowed for that year, and your EIC has not been reduced or disallowed again for any reason other than a math or clerical error.
You are taking the EIC without a qualifying child and the only reason your EIC was reduced or disallowed in the other year was because it was determined that a child listed on Schedule EIC was not your qualifying child.
2 years after the most recent tax year for which there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or
10 years after the most recent tax year for which there was a final determination that your EIC claim was due to fraud.
Foster child. A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. For more details on authorized placement agencies, see Pub. 596.
Married child. A child who was married at the end of 2007 is a qualifying child only if (a) you can claim him or her as your dependent on Form 1040, line 6c, or (b) you could have claimed him or her as your dependent except for the special rule for Children of divorced or separated parents that begins on page 16.
Members of the military. If you were on extended active duty outside the United States, your home is considered to be in the United States during that duty period. Extended active duty is military duty ordered for an indefinite period or for a period of more than 90 days. Once you begin serving extended active duty, you are considered to be on extended active duty even if you do not serve more than 90 days.
Nonresident aliens. If your filing status is married filing jointly, go to Step 2 on page 44. Otherwise, stop; you cannot take the EIC. Enter “ No ” on the dotted line next to line 66a.
Permanently and totally disabled. A person is permanently and totally disabled if, at any time in 2007, the person cannot engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition (a) has lasted or can be expected to last continuously for at least a year, or (b) can be expected to lead to death.
Qualifying child of more than one person. If the child is the qualifying child of more than one person, only one person can claim the child as a qualifying child for all of the following tax benefits, unless the special rule for Children of divorced or separated parents beginning on page 16 applies.
Dependency exemption (line 6c).
Child tax credits (lines 52 and 68).
Head of household filing status (line 4).
Credit for child and dependent care expenses (line 47).
Exclusion for dependent care benefits (Form 2441, Part III).
Earned income credit (lines 66a and 66b).
If only one of the persons is the child's parent, the child will be treated as the qualifying child of the parent.
If two of the persons are the child's parents, the child will be treated as the qualifying child of the parent with whom the child lived for the longer period of time in 2007. If the child lived with each parent for the same amount of time, the child will be treated as the qualifying child of the parent who had the higher adjusted gross income (AGI) for 2007.
If none of the persons is the child's parent, the child will be treated as the qualifying child of the person who had the highest AGI for 2007.
Example. Your daughter meets the conditions to be a qualifying child for both you and your mother. If you and your mother both claim tax benefits based on the child, the rules above apply. Under these rules, you are entitled to treat your daughter as a qualifying child for all of the six tax benefits listed above for which you otherwise qualify. Your mother would not be entitled to take any of the six tax benefits listed above unless she has a different qualifying child. If you will not be taking the EIC with a qualifying child, enter “ No ” on the dotted line next to line 66a. Otherwise, go to Step 3, question 1, on page 45.
Social security number (SSN). For the EIC, a valid SSN is a number issued by the Social Security Administration unless “ Not Valid for Employment ” is printed on the social security card and the number was issued solely to apply for or receive a federally funded benefit. To find out how to get an SSN, see page 12. If you will not have an SSN by the date your return is due, see What if You Cannot File on Time? on page 6.
Student. A student is a child who during any part of 5 calendar months of 2007 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet.
Welfare benefits, effect of credit on. Any refund you receive as a result of taking the EIC will not be used to determine if you are eligible for the following programs or how much you can receive from them. But if the refund you receive because of the EIC is not spent within a certain period of time, it can count as an asset (or resource) and affect your eligibility.
Temporary Assistance for Needy Families (TANF).
Medicaid and supplemental security income (SSI).
Food stamps and low-income housing.
Line 67
Excess Social Security and Tier 1 RRTA Tax Withheld
If you, or your spouse if filing a joint return, had more than one employer for 2007 and total wages of more than $97,500, 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 $6,045. But if any one employer withheld more than $6,045, you cannot claim the excess on your return. The employer should adjust the tax for you. If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. 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.
Line 68
Additional Child Tax Credit
What Is the Additional Child Tax Credit?
This credit is for certain people who have at least one qualifying child as defined in the instructions for line 6c on page 15. The additional child tax credit may give you a refund even if you do not owe any tax.
Two Steps To Take the Additional Child Tax Credit!
Step 1. Be sure you figured the amount, if any, of your child tax credit. See the instructions for line 52 that begin on page 39.
Step 2. Read the TIP at the end of your Child Tax Credit Worksheet. Use Form 8812 to see if you can take the additional child tax credit, but only if you meet the condition given in that TIP.
Line 69
Amount Paid With Request for Extension To File
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 69 the convenience fee you were charged. Also, include any amounts paid with Form 2350.
Line 70
Check the box(es) on line 70 to report any credit from Form 2439, 4136, or 8885.
Line 71
Refundable Credit for Prior Year Minimum Tax
If you have an unused minimum tax credit carryforward from 2004, you may be able to claim at least part of it as a refundable credit. Enter on line 71 the amount, if any, from Form 8801, line 27.
Refund
Line 73
Amount Overpaid
If line 73 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 79 for details.
TIP: 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 2008 on page 76.
Refund Offset
If you owe past-due federal tax, state income tax, child support, spousal support, or certain federal nontax debts, such as student loans, all or part of the overpayment on line 73 may be used (offset) to pay the past-due amount. Offsets for federal taxes are made by the IRS. All other offsets are made by the Treasury Department's Financial Management Service (FMS). For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from FMS. To find out if you may have an offset or if you have any questions about it, contact the agency to which you owe the debt.
Injured Spouse
If you file a joint return and your spouse has not paid past-due federal tax, state income tax, child support, spousal support, or a federal nontax debt, such as a student loan, part or all of the overpayment on line 73 may be used (offset) to pay the past-due amount. But your part of the overpayment may be refunded to you if certain conditions apply and you complete Form 8379. For details, use TeleTax topic 203 (see page 79) or see Form 8379.
Lines 74a Through 74d
| Fast Refunds! Choose direct deposit-a fast, simple, safe, secure way to have your refund deposited automatically to your checking or savings account, including an individual retirement arrangement (IRA). See the information about IRAs on page 60. |
Why Use Direct Deposit?
You get your refund faster by direct deposit than you do by check.
Payment is more secure. There is no check that can get lost or stolen.
It is more convenient. You do not have to make a trip to the bank to deposit your check.
It saves tax dollars. It costs the government less to refund by direct deposit.
If you want us to directly deposit the amount shown on line 74a to your checking or savings account, including an IRA, at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States:
Check the box on line 74a and attach Form 8888 if you want to split the direct deposit of your refund among two or three accounts, or
Complete lines 74b through 74d if you want your refund deposited to only one account.
Otherwise, we will send you a check.
Note.
If you do not want your refund directly deposited to your account, do not check the box on line 74a. Draw a line through the boxes on lines 74b and 74d.
CAUTION: The IRS is not responsible for a lost refund if you enter the wrong account information. Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted. Do not use the routing number on a deposit slip if it is different from the routing number on your checks.
If you file a joint return and check the box on line 74a and attach Form 8888 or fill in lines 74b through 74d, your spouse may get at least part of the refund.
If the direct deposit to your account(s) is different from the amount you expected, you will receive an explanation in the mail about 2 weeks after your refund is deposited.
Line 74a
You cannot file Form 8888 and split your refund among two or three accounts if Form 8379 is filed with your return.
Line 74b
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 below, the routing number is 250250025. Jeffrey and Suzanne Maple would use that routing number unless their financial institution instructed them to use a different routing number for direct deposits.
Ask your financial institution for the correct routing number to enter on line 74b if:
Your deposit is to a savings account that does not allow you to write checks, or
Your checks state they are payable through a financial institution different from the one at which you have your checking account.
.
Sample Check-Lines 74b Through 74d
Line 74c
Check the appropriate box for the type of account. Do not check more than one box. If the deposit is to an IRA, ask your financial institution whether you should check the “ Checking ” or “ Savings ” box. You must check the correct box to ensure your deposit is accepted.
Line 74d
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. Do not include the check number.
CAUTION: Some financial institutions will not allow a joint refund to be deposited to 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.
Individual Retirement Arrangement (IRA)
You can have your refund directly deposited to a traditional IRA, Roth IRA, or SEP-IRA, but not a SIMPLE IRA. You must establish the IRA at a bank or other financial institution before you request direct deposit. Make sure your direct deposit will be accepted. You must also notify the trustee of your account of the year to which the deposit is to be applied unless the trustee will not accept a deposit for 2007. If you do not, the trustee can assume the deposit is for the year during which you are filing the return. For example, if you file your 2007 return during 2008 and do not notify the trustee in advance, the trustee can assume the deposit to your IRA is for 2008. If you designate your deposit to be for 2007, you must verify that the deposit was actually made to the account by the due date of the return (without regard to extensions). If the deposit is not made to your account by the due date of the return (without regard to extensions), the deposit is not an IRA contribution for 2007. You must file an amended 2007 return and reduce any IRA deduction and any retirement savings contributions credit you claimed.
CAUTION: You and your spouse, if filing jointly, each may be able to contribute up to $4,000 ($5,000 if age 50 or older at the end of 2007) to a traditional IRA or Roth IRA for 2007. The limit for 2008 is $5,000 ($6,000 if age 50 or older at the end of 2008). A higher limit may apply for 2007 and 2008 if you were a participant in a 401(k) plan and your employer was in bankruptcy in an earlier year. You may owe a penalty if your contributions exceed these limits.
TIP: For more information on IRAs, see Pub. 590, Individual Retirement Arrangements (IRAs).
Line 75
Applied to Your 2008 Estimated Tax
Enter on line 75 the amount, if any, of the overpayment on line 73 you want applied to your 2008 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.
CAUTION: This election to apply part or all of the amount overpaid to your 2008 estimated tax cannot be changed later.
Line 76
Amount You Owe
TIP: To save interest and penalties, pay your taxes in full by April 15, 2008. You do not have to pay if line 76 is under $1.
Include any estimated tax penalty from line 77 in the amount you enter on line 76.
You can pay by check, money order, or credit card. Do not include any estimated tax payment for 2008 in your check, money order, or amount you charge. Instead, make the estimated tax payment separately.
To pay by check or money order. Make your check or money order payable to the “ United States Treasury ” for the full amount due. Do not send cash. Do not attach the payment to your return. Write “ 2007 Form 1040 ” and your name, address, daytime phone number, and social security number (SSN) on your payment. If you are filing a joint return, enter the SSN shown first on your tax return. To help process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes or lines (for example, do not enter “ $ XXX- ” or
“ $ XXXxx/100 ”). Then, complete Form 1040-V following the instructions on that form and enclose it in the envelope with your tax return and payment. Although you do not have to use Form 1040-V, doing so allows us to process your payment more accurately and efficiently.
To pay by credit card. You can 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.
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
What If You Cannot Pay?
If you cannot pay the full amount shown on line 76 when you file, you can ask to make monthly installment payments for the full or a partial amount. You may have up to 60 months to pay. However, even if your request to pay in installments is granted, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2008. 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 or credit card payment.
To ask for an installment agreement, you can apply online or use Form 9465. To apply online, go to www.irs.gov, use the pull-down menu under “ I need to... ” and select “ Set Up a Payment Plan. ” If you use Form 9465, you should receive a response to your request to make installment payments within 30 days. But if you file your return after March 31, it may take us longer to reply.
Line 77
Estimated Tax Penalty
You may owe this penalty if:
Line 76 is at least $1,000 and it is more than 10% of the tax shown on your return, or
You did not pay enough estimated tax by any of the due dates. This is true even if you are due a refund.
For most people, the “ tax shown on your return ” is the amount on your 2007 Form 1040, line 63, minus the total of any amounts shown on lines 66a, 68, and 71 and Forms 8828, 4137, 4136, 5329 (Parts III through VIII only), 8885, and 8919. Also subtract from line 63 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, and any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. When figuring the amount on line 63, include the amount on line 62 only if line 64 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 62.
Exception. You will not owe the penalty if your 2006 tax return was for a tax year of 12 full months and either of the following applies.You had no tax shown on your 2006 return and you were a U.S. citizen or resident for all of 2006, or
The total of lines 64, 65, and 67 on your 2007 return is at least 100% of the tax shown on your 2006 return (110% of that amount if you are not a farmer or fisherman and your adjusted gross income shown on that return is more than $150,000, or if married filing separately for 2007, more than $75,000). Your estimated tax payments for 2007 must have been made on time and for the required amount.
Figuring the Penalty
If the Exception on this page 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 77. Add the penalty to any tax due and enter the total on line 76. If you are due a refund, subtract the penalty from the overpayment you show on line 73. Do not file Form 2210 with your return unless Form 2210 indicates that you must do so. Instead, keep it for your records.
TIP: Because Form 2210 is complicated, you can leave line 77 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.
Third Party Designee
If you want to allow a friend, family member, or any other person you choose to discuss your 2007 tax return with the IRS, check the “ Yes ” box in the “ Third Party Designee ” area of your return. Also, enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN). But if you want to allow the paid preparer who signed your return to discuss it with the IRS, just enter “ Preparer ” in the space for the designee's name. You do not have to provide the other information requested.
If you check the “ Yes ” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to:
Give the IRS any information that is missing from your return,
Call the IRS for information about the processing of your return or the status of your refund or payment(s),
Receive copies of notices or transcripts related to your return, upon request, and
Respond to certain IRS notices about math errors, offsets, and return preparation.
You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authorization, see Pub. 947.
The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2008 tax return. This is April 15, 2009, for most people. If you wish to revoke the authorization before it ends, see Pub. 947.
Sign Your Return
Form 1040 is not considered a valid return unless you sign it. If you are filing a joint return, your spouse must also sign. If your spouse cannot sign the return, see Pub. 501. Be sure to date your return and enter your occupation(s). If you have someone prepare your return, you are still responsible for the correctness of the return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848. If you are filing a joint return as a surviving spouse, see Death of a Taxpayer on page 77.
Child's Return
If your child cannot sign the return, either parent can sign the child's name in the space provided. Then, enter “ By (your signature), parent for minor child. ”
Daytime Phone Number
Providing your daytime phone number may help speed the processing of your return. We may have questions about items on your return, such as the earned income credit, credit for child and dependent care expenses, etc. If you answer our questions over the phone, we may be able to continue processing your return without mailing you a letter. If you are filing a joint return, you can enter either your or your spouse's daytime phone number.
Paid Preparer Must Sign Your Return
Generally, anyone you pay to prepare your return must sign it in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return.
Electronic Return Signatures!
Create your own personal identification number (PIN) and file a paperless return electronically or use a tax professional. If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures.
A PIN is any combination of five digits you choose except five zeros. If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2.
To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2006 federal income tax return, if applicable. Do not use your AGI from an amended return (Form 1040X) or a math error correction made by IRS. AGI is the amount shown on your 2006 Form 1040, line 38; Form 1040A, line 21; or Form 1040EZ, line 4. If you do not have your 2006 income tax return, call the IRS at 1-800-829-1040 to get a free transcript of your return. (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. The prior year PIN is the five digit PIN you used to electronically sign your 2006 return.) You will also be prompted to enter your date of birth (DOB). Make sure your DOB is accurate and matches the information on record with the Social Security Administration by checking your annual social security statement.
If you are filing your return electronically using a tax practitioner, you are required to sign the return electronically. The practitioner will tell you how.
CAUTION: You cannot sign your return electronically (but can still file electronically) if you are not using a tax practitioner and you are a first-time filer under age 16 at the end of 2007 or if you are attaching or filing Form 1098-C, 3115, 3468 (if attachments are required), 4136 (if certificate or statement required), 5713, 8283 (if a statement is required for Section A or if Section B is completed), 8332 (or certain pages from a post-1984 decree or agreement), 8858, 8864 (if certification or statement required), 8885, Schedule D-1 (Form 1040) (if you elect not to include your transactions on the electronic STCGL or LTCGL records), or Worksheets 1 through 4 from Pub. 517 (or other statement showing the required information and computations).
Form 8453-OL. Your return is not complete without your signature. If you are not filing through a tax practitioner and you are not eligible or choose not to sign your return with an electronic signature, you must complete, sign, and file Form 8453-OL.
Assemble Your Return
Assemble any schedules and forms behind Form 1040 in order of the “ Attachment Sequence No. ” shown in the upper right corner of the schedule or form. If you have supporting statements, arrange them in the same order as the schedules or forms they support and attach them last. Do not attach correspondence or other items unless required to do so. Attach a copy of Forms W-2 and 2439 to the front of Form 1040. If you received a Form W-2c (a corrected Form W-2), attach a copy of your original Forms W-2 and any Forms W-2c. Also attach Forms W-2G and 1099-R to the front of Form 1040 if tax was withheld.
Keeping Your Data Protected