Attention: The deadline to e-file your 2008 return was 10/15/2009, however, you can still use eSmart Tax to prepare, print and mail your 2008 return to the IRS/State for processing

Federal Tax Form 1040 - Individual Income Tax Return Instructions

General instructions for Form 1040

What's New

What's New for 2007

Tax benefits extended. The following tax benefits were extended through 2007.

Deduction for educator expenses in figuring adjusted gross income.
Tuition and fees deduction.
District of Columbia first-time homebuyer credit.

Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount is decreased to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately).

CAUTION: At the time these instructions went to print, Congress was expected to consider legislation that would increase the amounts above. To find out if legislation was enacted, and for more details, see the Instructions for Form 6251.

IRA deduction expanded. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2007 modified adjusted gross income (AGI) is less than $62,000 ($103,000 if married filing jointly or qualifying widow(er)). You may be able to deduct up to an additional $3,000 if you were a participant in a 401(k) plan and your employer was in bankruptcy in an earlier year. See the instructions for line 32 on page 27.

Standard mileage rates. The 2007 rate for business use of your vehicle is 48½ cents a mile. The 2007 rate for use of your vehicle to get medical care or to move is 20 cents a mile.

Earned income credit (EIC). You may be able to take the EIC if:

A child lived with you and you earned less than $37,783 ($39,783 if married filing jointly), or
A child did not live with you and you earned less than $12,590 ($14,590 if married filing jointly).

The maximum AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you. The maximum investment income you can have and still get the credit has increased to $2,900. See the instructions for lines 66a and 66b that begin on page 44.

Elective salary deferrals. The maximum amount you can defer under all plans is generally limited to $15,500 ($10,500 if you only have SIMPLE plans; $18,500 for section 403(b) plans if you qualify for the 15-year rule). See the instructions for line 7 on page 18.

Mailing your return. You may be mailing your return to a different address this year because the IRS has changed the filing location for several areas. If you received an envelope with your tax package, please use it. Otherwise, see Where Do You File? on the back cover.

Domestic production activities deduction. The deduction rate for 2007 is increased to 6%.

Unreported social security and Medicare tax on wages. If you are an employee and your employer did not withhold social security and Medicare tax, see Form 8919 to figure and report this tax.

Refundable credit for prior-year minimum tax. If you have an unused minimum tax credit carryforward from 2004, see Form 8801 to find if you can take this credit.

Health savings account (HSA) funding distributions. You may be able to elect to exclude from income a distribution made from your IRA to your HSA. See the instructions for lines 15a and 15b on page 21.

Insurance premiums for retired public safety officers. If you are a retired safety officer, you can elect to exclude from income distributions made directly from your eligible retirement plans to pay premiums for certain insurance. See the instructions for lines 16a and 16b on page 22.

Exemption for housing a person displaced by Hurricane Katrina expires. The additional exemption amount for housing a person displaced by Hurricane Katrina does not apply for 2007 or later years.

Telephone excise tax credit. This credit was available only on your 2006 return. If you filed but did not request it on your 2006 return, file Form 1040X using a simplified procedure explained in its instructions to amend your 2006 return. If you were not required to file a 2006 return, see the 2006 Form 1040EZ-T.

Filing Requirements

Introduction

These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.

Do You Have To File?

Use Chart A, B, or C to see if you must file a return. U.S. citizens who lived in or had income from a U.S. possession should see Pub. 570. Residents of Puerto Rico can use TeleTax topic 901 (see page 79) to see if they must file.

TIP: Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for the earned income credit, additional child tax credit, health coverage tax credit, or refundable credit for prior year minimum tax.

Chart A—For Most People

IF your filing status is . . . AND at the end of 2007
you were* . . . THEN file a return if your gross
income** was at least . . .


Single	under 65 65 or older	$8,750 10,050
Married filing jointly***	under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)	$17,500 18,550 19,600
Married filing separately (see page 13)	any age	$3,400
Head of household (see page 13)	under 65 65 or older	$11,250 12,550
Qualifying widow(er) with dependent child (see page 14)	under 65 65 or older	$14,100 15,150
* If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007.
** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). Do not include social security benefits unless you are married filing a separate return and you lived with your spouse at any time in 2007.
*** If you did not live with your spouse at the end of 2007 (or on the date your spouse died) and your gross income was at least $3,400, you must file a return regardless of your age.

Exception for children under age 18. If you are planning to file a tax return for your child who was under age 18 at the end of 2007 and certain other conditions apply, you can elect to include your child's income on your return. But you must use Form 8814 to do so. If you make this election, your child does not have to file a return. For details, use TeleTax topic 553 (see page 79) or see Form 8814. A child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8814 for such a child.

Resident aliens. These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details.

Nonresident aliens and dual-status aliens. These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.

You were married to a U.S. citizen or resident alien at the end of 2007.
You elected to be taxed as a resident alien.

CAUTION:Specific rules apply to determine if you are a resident alien, nonresident alien, or dual-status alien. Most nonresident aliens and dual-status aliens have different filing requirements and may have to file Form 1040NR or Form 1040NR-EZ. Pub. 519 discusses these requirements and other information to help aliens comply with U.S. tax law, including tax treaty benefits and special rules for students and scholars.

When and Where Should You File?

File Form 1040 by April 15, 2008. If you file after this date, you may have to pay interest and penalties. See page 78.

If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone, qualified hazardous duty area, or a contingency operation, see
Pub. 3.

See the back cover for filing instructions and addresses. For details on using a private delivery service, see page 9.

What if You Cannot File on Time?

You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868.

CAUTION: An automatic 6-month extension to file does not extend the time to pay your tax. See Form 4868.

If you are a U.S. citizen or resident alien, you may qualify for an automatic extension of time to file without filing Form 4868. You qualify if, on the due date of your return, you meet one of the following conditions.

You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico.
You are in military or naval service on duty outside the United States and Puerto Rico.

This extension gives you an extra 2 months to file and pay the tax, but interest will be charged from the original due date of the return on any unpaid tax. You must attach a statement to your return showing that you meet the requirements. If you are still unable to file your return by the end of the 2-month period, you can get an additional 4 months if, no later than June 16, 2008, you file Form 4868. This 4-month extension of time to file does not extend the time to pay your tax. See Form 4868.

Chart B—For Children and Other Dependents (See the instructions for line 6c that begin on page 15 to find out if someone can claim you as a dependent.)

If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Earned income includes wages, tips, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.
Single dependents. Were you either age 65 or older or blind?
	No. You must file a return if any of the following apply.
		Your unearned income was over $850. Your earned income was over $5,350. Your gross income was more than the larger of—
			$850, or Your earned income (up to $5,050) plus $300.
	Yes. You must file a return if any of the following apply.
		Your unearned income was over $2,150 ($3,450 if 65 or older and blind). Your earned income was over $6,650 ($7,950 if 65 or older and blind). Your gross income was more than—
				The larger of:	Plus	This amount:
			$850, or Your earned income (up to $5,050) plus $300			$1,300 ($2,600 if 65 or older and blind)
Married dependents. Were you either age 65 or older or blind?
	No. You must file a return if any of the following apply.
		Your unearned income was over $850. Your earned income was over $5,350. Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Your gross income was more than the larger of—
			$850, or Your earned income (up to $5,050) plus $300.
	Yes. You must file a return if any of the following apply.
		Your unearned income was over $1,900 ($2,950 if 65 or older and blind). Your earned income was over $6,400 ($7,450 if 65 or older and blind). Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Your gross income was more than—
				The larger of:	Plus	This amount:
			$850, or Your earned income (up to $5,050) plus $300			$1,050 ($2,100 if 65 or older and blind)

Chart C—Other Situations When You Must File

You must file a return if any of the four conditions below apply for 2007.
1.		You owe any special taxes, including any of the following.
	a.	Alternative minimum tax.
	b.	Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if you are filing a return only because you owe this tax, you can file Form 5329 by itself.
	c.	Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by itself.
	d.	Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.
	e.	Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings account distributions. See the instructions for line 63 on page 42.
	f.	Recapture taxes. See the instructions for line 44, that begin on page 33, and line 63, on page 42.
	g.	Additional tax on a health savings account from Form 8889, Part III.
2.		You received any advance earned income credit (EIC) payments from your employer. These payments are shown in Form W-2, box 9.
3.		You had net earnings from self-employment of at least $400.
4.		You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.

Where To Report Certain Items From 2007 Forms W-2, 1098, and 1099

If any federal income tax withheld is shown on these forms, include the tax withheld on Form 1040, line 64. If you itemize your deductions and any state or local income tax withheld is shown on these forms, include the tax withheld on Schedule A, line 5, if you do not elect to deduct state and local general sales taxes. Form Item and Box in Which It Should Appear Where To Report if Filing Form 1040


	W-2	Wages, tips, other compensation (box 1)	Form 1040, line 7
		Allocated tips (box 8)	See Wages, Salaries, Tips, etc. on page 18
		Advance EIC payment (box 9)	Form 1040, line 61
		Dependent care benefits (box 10)	Form 2441, Part III
		Adoption benefits (box 12, code T)	Form 8839, line 22
		Employer contributions to an Archer MSA (box 12, code R)	Form 8853, line 3
		Employer contributions to a health savings account (box 12, code W)	Form 8889, line 9
	W-2G	Gambling winnings (box 1)	Form 1040, line 21 (Schedule C or C-EZ for professional gamblers)
	1098	Mortgage interest (box 1) Points (box 2)	Schedule A, line 10*
		Refund of overpaid interest (box 3)	Form 1040, line 21, but first see the instructions on Form 1098*
		Mortgage insurance premiums (box 4)	See the instructions for Schedule A, line 13*
	1098-C	Contributions of motor vehicles, boats, and airplanes	Schedule A, line 17
	1098-E	Student loan interest (box 1)	See the instructions for Form 1040, line 33, on page 30*
	1098-T	Qualified tuition and related expenses (box 1)	See the instructions for Form 1040, line 34, on page 31, or Form 1040, line 49, on page 37, but first see the instructions on Form 1098-T*
	1099-A	Acquisition or abandonment of secured property	See Pub. 544
	1099-B	Stocks, bonds, etc. (box 2)	See the instructions on Form 1099-B
		Bartering (box 3)	See Pub. 525
		Aggregate profit or (loss) (box 11)	Form 6781, line 1
	1099-C	Canceled debt (box 2)	Form 1040, line 21, but first see the instructions on Form 1099-C*
	1099-DIV	Total ordinary dividends (box 1a)	Form 1040, line 9a
		Qualified dividends (box 1b)	See the instructions for Form 1040, line 9b, on page 19
		Total capital gain distributions (box 2a)	Form 1040, line 13, or, if required, Schedule D, line 13
		Unrecaptured section 1250 gain (box 2b)	See the instructions for Schedule D, line 19, that begin on page D-8
		Section 1202 gain (box 2c)	See Exclusion of Gain on Qualified Small Business (QSB) Stock in the instructions for Schedule D on page D-4
		Collectibles (28%) gain (box 2d)	See the instructions for Schedule D, line 18, on page D-8
		Nondividend distributions (box 3)	See the instructions for Form 1040, line 9a, on page 19
		Investment expenses (box 5)	Schedule A, line 23
		Foreign tax paid (box 6)	Form 1040, line 51, or Schedule A, line 8. But first see the instructions for line 51 that begin on page 37.
	1099-G	Unemployment compensation (box 1)	Form 1040, line 19. But if you repaid any unemployment compensation in 2007, see the instructions for line 19 on page 24.
		State or local income tax refunds, credits, or offsets (box 2)	See the instructions for Form 1040, line 10, that begin on page 20. If box 8 on Form 1099-G is checked, see the box 8 instructions.
		ATAA payments (box 5)	Form 1040, line 21
		Taxable grants (box 6)	Form 1040, line 21*
		Agriculture payments (box 7)	See the Instructions for Schedule F or Pub. 225*
* If the item relates to an activity for which you are required to file Schedule C, C-EZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form instead.
	1099-INT	Interest income (box 1)	See the instructions for Form 1040, line 8a, on page 19
		Early withdrawal penalty (box 2)	Form 1040, line 30
		Interest on U.S. savings bonds and Treasury obligations (box 3)	See the instructions for Form 1040, line 8a, on page 19
		Investment expenses (box 5)	Schedule A, line 23
		Foreign tax paid (box 6)	Form 1040, line 51, or Schedule A, line 8. But first see the instructions for line 51 that begin on page 37.
		Tax-exempt interest (box 8)	Form 1040, line 8b
		Specified private activity bond interest (box 9)	Form 6251, line 11
	1099-LTC	Long-term care and accelerated death benefits	See Pub. 525 and the Instructions for Form 8853
	1099-MISC	Rents (box 1)	See the Instructions for Schedule E*
		Royalties (box 2)	Schedule E, line 4 (for timber, coal, and iron ore royalties, see Pub. 544)*
		Other income (box 3)	Form 1040, line 21*
		Nonemployee compensation (box 7)	Schedule C, C-EZ, or F. But if you were not self-employed, see the instructions on Form 1099-MISC.
		Excess golden parachute payments (box 13)	See the instructions for Form 1040, line 63, on page 42
		Other (boxes 5, 6, 8, 9, 10, and 15b)	See the instructions on Form 1099-MISC
	1099-OID	Original issue discount (box 1) Other periodic interest (box 2)	See the instructions on Form 1099-OID
		Early withdrawal penalty (box 3)	Form 1040, line 30
		Original issue discount on U.S. Treasury obligations (box 6)	See the instructions on Form 1099-OID
		Investment expenses (box 7)	Schedule A, line 23
	1099-PATR	Patronage dividends and other distributions from a cooperative (boxes 1, 2, 3, and 5)	Schedule C, C-EZ, or F or Form 4835, but first see the instructions on Form 1099-PATR
		Domestic production activities deduction (box 6)	Form 8903, line 21
		Credits (boxes 7, 8, and 10)	Form 3468, 3800, 5884, 6478, 8835, 8844, 8845, 8861, 8864, 8896, or 8909
		Patron's AMT adjustment (box 9)	Form 6251, line 26
		Deduction for small refiner capital costs or qualified refinery property (box 10)	Schedule C, C-EZ, or F
	1099-Q	Qualified education program payments	See the instructions for Form 1040, line 21, on page 24
	1099-R	Distributions from IRAs**	See the instructions for Form 1040, lines 15a and 15b, that begin on page 21
		Distributions from pensions, annuities, etc.	See the instructions for Form 1040, lines 16a and 16b, that begin on page 22
		Capital gain (box 3)	See the instructions on Form 1099-R
	1099-S	Gross proceeds from real estate transactions (box 2)	Form 4797, Form 6252, or Schedule D. But if the property was your home, see the Instructions for Schedule D to find out if you must report the sale or exchange. Report an exchange of like-kind property on Form 8824 even if no gross proceeds are reported on Form 1099-S.
		Buyer's part of real estate tax (box 5)	See the instructions for Schedule A, line 6, on page A-5*
	1099-SA	Distributions from health savings accounts (HSAs)	Form 8889, line 14a
		Distributions from MSAs***	Form 8853
* If the item relates to an activity for which you are required to file Schedule C, C-EZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form instead.
** This includes distributions from Roth, SEP, and SIMPLE IRAs.
*** This includes distributions from Archer and Medicare Advantage MSAs.

Private Delivery Services

You can use certain private delivery services designated by the IRS to meet the "timely mailing as timely filing/paying" rule for tax returns and payments. These private delivery services include only the following.

DHL Express (DHL): DHL Same Day Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service.
Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.
United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

The private delivery service can tell you how to get written proof of the mailing date.

CAUTION: Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

Page 1 of illustrated Form 1040

Page 2 of illustrated Form 1040

Line Instructions for Form 1040

Introduction

Name and Address

Use the Peel-Off Label

Using your peel-off name and address label on the back of this booklet will speed the processing of your return. It also prevents common errors that can delay refunds or result in unnecessary notices. Put the label on your return after you have finished it. Cross out any incorrect information and print the correct information. Add any missing items, such as your apartment number.

Address Change

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, use Form 8822 to notify the IRS of your new address.

Name Change

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 76 for more details. If you received a peel-off label, cross out your former name and print your new name.

What if You Do Not Have a Label?

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

TIP: If you filed a joint return for 2006 and you are filing a joint return for 2007 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2006 return.

P.O. Box

Enter your box number only if your post office does not deliver mail to your home.

Foreign Address

Enter the information in the following order: City, province or state, and country. Follow the country's practice for entering the postal code. Do not abbreviate the country name.

Death of a Taxpayer

See page 77.

Social Security Number (SSN)

An incorrect or missing SSN can increase your tax or reduce your refund. To apply for an SSN, fill in Form SS-5 and return it, along with the appropriate evidence documents, to the Social Security Administration (SSA). You can get Form SS-5 online at www.socialsecurity.gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. It usually takes about 2 weeks to get an SSN once the SSA has all the evidence and information it needs.

Check that your SSN on your Forms W-2 and 1099 agrees with your social security card. If not, see page 76 for more details.

IRS Individual Taxpayer Identification Numbers (ITINs) for Aliens

If you are a nonresident or resident alien and you do not have and are not eligible to get an SSN, you must apply for an ITIN. For details on how to do so, see Form W-7 and its instructions. It usually takes about 4-6 weeks to get an ITIN.

If you already have an ITIN, enter it wherever your SSN is requested on your tax return.

Note.

An ITIN is for tax use only. It does not entitle you to social security benefits or change your employment or immigration status under U.S. law.

Nonresident Alien Spouse

If your spouse is a nonresident alien, he or she must have either an SSN or an ITIN if:

You file a joint return,
You file a separate return and claim an exemption for your spouse, or
Your spouse is filing a separate return.

Presidential Election Campaign Fund

This fund helps pay for Presidential election campaigns. The fund reduces candidates' dependence on large contributions from individuals and groups and places candidates on an equal financial footing in the general election. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse can also have $3 go to the fund. If you check a box, your tax or refund will not change.

Filing Status

Check only the filing status that applies to you. The ones that will usually give you the lowest tax are listed last.

Married filing separately.
Single.
Head of household.
Married filing jointly or qualifying widow(er) with dependent child.

TIP: More than one filing status can apply to you. Choose the one that will give you the lowest tax.

Line 1

Single

You can check the box on line 1 if any of the following was true on December 31, 2007.

You were never married.
You were legally separated, according to your state law, under a decree of divorce or separate maintenance.
You were widowed before
January 1, 2007, and did not remarry before the end of 2007. But if you have a dependent child, you may be able to use the qualifying widow(er) filing status. See the instructions for line 5 on page 14.

Line 2

Married Filing Jointly

You can check the box on line 2 if any of the following apply.

You were married at the end of 2007, even if you did not live with your spouse at the end of 2007.
Your spouse died in 2007 and you did not remarry in 2007.
You were married at the end of 2007, and your spouse died in 2008 before filing a 2007 return.

For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife. A husband and wife filing jointly report their combined income and deduct their combined allowable expenses on one return. They can 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. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return.

Joint and several tax liability. If you file a joint return, both you and your spouse are generally responsible for the tax and any interest or penalties due on the return. This means that if one spouse does not pay the tax due, the other may have to. However, see Innocent Spouse Relief on page 76.

Nonresident aliens and dual-status aliens. Generally, a husband and wife cannot file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a U.S. citizen or resident alien at the end of 2007, you may elect to be treated as a resident alien and file a joint return. See Pub. 519 for details.

Line 3

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 for which you qualify. 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 18.

Be sure to enter your spouse's SSN or ITIN on Form 1040 unless your spouse does not have and is not required to have an SSN or ITIN.

TIP: 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 2007. See Married persons who live apart on this page.

Line 4

Head of Household

This filing status is for unmarried individuals who provide a home for certain other persons. (Some married persons who live apart are considered unmarried. See Married persons who live apart on this page. If you are married to a nonresident alien, you may also be considered unmarried. See Nonresident alien spouse on this page.) You can check the box on line 4 only if you were unmarried or legally separated (according to your state law) under a decree of divorce or separate maintenance at the end of 2007 and either Test 1 or Test 2 below applies.

Test 1. You paid over half the cost of keeping up a home that was the main home for all of 2007 of your parent whom you can claim as a dependent, except under a multiple support agreement (see page 17). Your parent did not have to live with you.

Test 2. You paid over half the cost of keeping up a home in which you lived and in which one of the following also lived for more than half of the year (if half or less, see Exception to time lived with you on this page).

Any person whom you can claim as a dependent. But do not include:
1. Your qualifying child (as defined in Step 1 on page 15) whom you claim as your dependent based on the rule for Children of divorced or separated parents that begins on page 16,
2. Any person who is your dependent only because he or she lived with you for all of 2007, or
3. Any person you claimed as a dependent under a multiple support agreement. See page 17.
Your unmarried qualifying child who is not your dependent.
Your married qualifying child who is not your dependent only because you can be claimed as a dependent on someone else's 2007 return.
Your child who is neither your dependent nor your qualifying child because of the rule for Children of divorced or separated parents that begins on page 16.

If the child is not your dependent, enter the child's name on line 4. If you do not enter the name, it will take us longer to process your return.

Dependent. To find out if someone is your dependent, see the instructions for line 6c that begin on page 15.

Exception to time lived with you. Temporary absences for special circumstances, such as for school, vacation, medical care, military service, and detention in a juvenile facility, count as time lived in the home. If the person for whom you kept up a home was born or died in 2007, you can still file as head of household as long as the home was that person's main home for the part of the year he or she was alive. Also see Kidnapped child on page 17, if applicable.

Keeping up a home. To find out what is included in the cost of keeping up a home, see Pub. 501. If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost.

Married persons who live apart. Even if you were not divorced or legally separated at the end of 2007, you are considered unmarried if all of the following apply.

You lived apart from your spouse for the last 6 months of 2007. Temporary absences for special circumstances, such as for business, medical care, school, or military service, count as time lived in the home.
You file a separate return from your spouse.
You paid over half the cost of keeping up your home for 2007.
Your home was the main home of your child, stepchild, or foster child for more than half of 2007 (if half or less, see Exception to time lived with you above).
You can claim this child as your dependent or could claim the child except that the child's other parent can claim him or her under the rule for Children of divorced or separated parents that begins on page 16.

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.

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.

Nonresident alien spouse. You are considered unmarried for head of household filing status if your spouse was a nonresident alien at any time during the year and you do not choose to treat him or her as a resident alien. To claim head of household filing status, you must also meet Test 1 or Test 2 on this page.

Line 5

Qualifying Widow(er) With Dependent Child

You can check the box on line 5 and use joint return tax rates for 2007 if all of the following apply.

Your spouse died in 2005 or 2006 and you did not remarry before the end of 2007.
You have a child or stepchild whom you claim as a dependent. This does not include a foster child.
This child lived in your home for all of 2007. If the child did not live with you for the required time, see Exception to time lived with you on this page.
You paid over half the cost of keeping up your home.
You could have filed a joint return with your spouse the year he or she died, even if you did not actually do so.

If your spouse died in 2007, you cannot file as qualifying widow(er) with dependent child. Instead, see the instructions for line 2 on page 13.

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.

Dependent. To find out if someone is your dependent, see the instructions for line 6c that begin on page 15.

Exception to time lived with you. Temporary absences for special circumstances, such as for school, vacation, medical care, military service, and detention in a juvenile facility, count as time lived in the home. 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 the child's home for the entire time he or she was alive. Also see Kidnapped child on page 17, if applicable.

Exemptions

You usually can deduct $3,400 on line 42 for each exemption you can take.

Line 6b

Spouse

Check the box on line 6b if either of the following applies.

Your filing status is married filing jointly and your spouse cannot be claimed as a dependent on another person's return.
You were married at the end of 2007, your filing status is married filing separately or head of household, and both of the following apply.
1. Your spouse had no income and is not filing a return.
2. Your spouse cannot be claimed as a dependent on another person's return.

If your filing status is head of household and you check the box on line 6b, enter the name of your spouse on the dotted line next to line 6b. Also, enter your spouse's social security number in the space provided at the top of your return.

Line 6c—Dependents

Dependents and Qualifying Child for Child Tax Credit

Follow the steps below to find out if a person qualifies as your dependent, qualifies you to take the child tax credit, or both. If you have more than four dependents, attach a statement to your return with the required information.

Step 1. Do You Have a Qualifying Child?

A qualifying child 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 17)
or
Any age and permanently and totally disabled (see page 17)

who...
Did not provide over half of his or her own support for 2007 (see Pub. 501)

who...
Lived with you 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 17.
		If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing jointly) for 2007, see Qualifying child of more than one person on page 17.

1. Do you have a child who meets the conditions to be your qualifying child?

Yes.

Go to Step 2.

No.

Go to Step 4 on page 16.

Step 2. Is Your Qualifying Child Your Dependent?

1. Was the child a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico? If the child was adopted, see Exception to citizen test on page 17.

Yes. Continue

No.

You cannot claim this child as a dependent. Go to Form 1040, line 7.

2. Was the child married?

Yes.

See Married person on page 17.

No. Continue

3. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else's 2007 tax return? See Steps 1, 2, and 4.

Yes.

You cannot claim any dependents. Go to Step 3.

No.

You can claim this child as a dependent. Complete Form 1040, line 6c, columns (1) through (3) for this child. Then, go to Step 3.

Step 3. Does Your Qualifying Child Qualify You for the Child Tax Credit?

1. Was the child under age 17 at the end of 2007?

Yes. Continue

No.

This child is not a qualifying child for the child tax credit. Go to Form 1040, line 7.

2. Was the child a U.S. citizen, U.S. national, or U.S. resident alien? If the child was adopted, see Exception to citizen test on page 17.

Yes.

This child is a qualifying child for the child tax credit. If this child is your dependent, check the box on Form 1040, line 6c, column (4). Otherwise, you must complete and attach Form 8901.

No.

This child is not a qualifying child for the child tax credit. Go to Form 1040, line 7.

Step 4. Is Your Qualifying Relative Your Dependent?

A qualifying relative is a person who is your...
Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild)
or
Brother, sister, or a son or daughter of either of them (for example, your niece or nephew)
or
Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle)
or
Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
or
Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law. If the person did not live with you for the required time, see Exception to time lived with you on page 17

who was not...
A qualifying child (see Step 1) of any taxpayer for 2007 (see Pub. 501 if the child lived in Canada or Mexico)

who...
Had gross income of less than $3,400 in 2007. If the person was permanently and totally disabled, see Exception to gross income test on page 17

For whom you provided...
Over half of his or her support in 2007. But see the special rule for Children of divorced or separated parents that begins on this page, Multiple support agreements on page 17, and Kidnapped child on page 17.

1. Does any person meet the conditions to be your qualifying relative?

Yes. Continue

No.

Go to Form 1040, line 7.

2. Was your qualifying relative a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico? If your qualifying relative was adopted, see Exception to the citizen test on page 17.

Yes. Continue

No.

You cannot claim this person as a dependent. Go to Form 1040, line 7.

3. Was your qualifying relative married?

Yes.

See Married person on page 17.

No. Continue

4. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else's 2007 tax return? See Steps 1, 2, and 4.

Yes.

You cannot claim any dependents. Go to Form 1040, line 7.

No.

You can claim this person as a dependent. Complete Form 1040, line 6c, columns (1) through (3). Do not check the box on Form 1040, line 6c, column (4).

Definitions and Special Rules

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.

Adoption taxpayer identification numbers (ATINs). If you have a dependent who was placed with you for legal adoption and you do not know his or her SSN, you must get an ATIN for the dependent from the IRS. See Form W-7A for details.

Children of divorced or separated parents. A child will be treated as being the qualifying child or qualifying relative of his or her noncustodial parent (the parent with whom the child lived for the lesser part of 2007) if all of the following conditions apply.

The parents are divorced, legally separated, separated under a written separation agreement, or lived apart at all times during the last 6 months of 2007.
The child received over half of his or her support for 2007 from the parents (without regard to the rules on Multiple support agreements on page 17). Support of a child received from a parent's spouse is treated as provided by the parent.
The child is in custody of one or both of the parents for more than half of 2007.
Either of the following applies.
1. The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for 2007, and the noncustodial parent attaches the form or statement to his or her return. If the divorce decree or separation agreement went into effect after 1984, the noncustodial parent can attach certain pages from the decree or agreement instead of Form 8332. See Post-1984 decree or agreement on page 17.
2. A pre-1985 decree of divorce or separate maintenance or written separation agreement between the parents provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2007.

If conditions (1) through (4) apply, only the noncustodial parent can claim the child for purposes of the dependency exemption (line 6c) and the child tax credits (lines 52 and 68). However, this special rule does not apply to head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. See Pub. 501 for details.

Post-1984 decree or agreement. The decree or agreement must state all three of the following.

The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.
The other parent will not claim the child as a dependent.
The years for which the claim is released.

The noncustodial parent must attach all of the following pages from the decree or agreement.

Cover page (include the other parent's SSN on that page).
The pages that include all the information identified in (1) through (3) above.
Signature page with the other parent's signature and date of agreement.

CAUTION: You must attach the required information even if you filed it with your return in an earlier year.

Exception to citizen test. If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household, that child meets the citizen test.

Exception to gross income test. If your relative (including a person who lived with you all year as a member of your household) is permanently and totally disabled (defined on this page), certain income for services performed at a sheltered workshop may be excluded for this test. For details, see Pub. 501.

Exception to time lived with you. A person is considered to have lived with you for all of 2007 if the person was born or died in 2007 and your home was this person's home for the entire time he or she was alive. Temporary absences for special circumstances, such as for school, vacation, medical care, military service, or detention in a juvenile facility, count as time lived with you. Also see Children of divorced or separated parents that begins on page 16 or Kidnapped child below.

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.

Kidnapped child. If your child is presumed by law enforcement authorities to have been kidnapped by someone who is not a family member, you may be able to take the child into account in determining your eligibility for head of household or qualifying widow(er) filing status, the deduction for dependents, child tax credit, and the earned income credit (EIC). For details, see Pub. 501 (Pub. 596 for the EIC).

Married person. If the person is married, you cannot claim that person as your dependent if he or she files a joint return. But this rule does not apply if the return is filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns. If the person meets this exception, go to Step 2, question 3, on page 15 (for a qualifying child) or Step 4, question 4, on page 16 (for a qualifying relative). If the person does not meet this exception, go to Step 3 on page 15 (for a qualifying child) or Form 1040, line 7 (for a qualifying relative).

Multiple support agreements. If no one person contributed over half of the support of your relative (including a person who lived with you all year as a member of your household) but you and another person(s) provided more than half of your relative's support, special rules may apply that would treat you as having provided over half of the support. For details, see Pub. 501.

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 has lasted or can be expected to last continuously for at least a year or 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).

No other person can take any of the six tax benefits listed above unless he or she has a different qualifying child. If you and any other person claim the child as a qualifying child, the IRS will apply the following rules.

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 are 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 be claiming the child as a qualifying child, go to Step 2 on page 15. Otherwise, stop; you cannot claim any benefits based on this child. Go to Form 1040, line 7.

Social security number. 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 12. If your dependent will not have a number by the date your return is due, see What if You Cannot File on Time? on page 6. If your dependent child was born and died in 2007 and you do not have an SSN for the child, you can attach a copy of the child's birth certificate instead and enter “ Died ” in column (2).

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.

Income

Foreign-Source Income

You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. You must also report earned income, such as wages and tips, from sources outside the United States.

If you worked abroad, you may be able to exclude part or all of your earned income. For details, see Pub. 54 and Form 2555 or 2555-EZ.

Foreign retirement plans. If you were a beneficiary of a foreign retirement plan, you may have to report the undistributed income earned in your plan. However, if you were the beneficiary of a Canadian registered retirement plan, see Form 8891 to find out if you can elect to defer tax on the undistributed income. Report distributions from foreign pension plans on lines 16a and 16b.

Chapter 11 Bankruptcy Cases

If you are a debtor in a chapter 11 bankruptcy case that was filed on or after October 17, 2005, income taxable to the bankruptcy estate and reported on the estate's income tax return includes:

Earnings from services you performed after the beginning of the case (both wages and self-employment income), and
Income from property described in section 541 of title 11 of the U.S. Code that you either owned when the case began or that you acquired after the case began and before the case was closed, dismissed, or converted to a case under a different chapter.

Because this income is taxable to the estate, do not include this income on your own individual income tax return. The only exception is for purposes of figuring your self-employment tax. For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Also, you (or the trustee, if one is appointed) must allocate between you and the bankruptcy estate the wages, salary, or other compensation and withheld income tax reported to you on Form W-2. A similar allocation is required for income and withheld income tax reported to you on Forms 1099. You must also attach a statement to your tax return that indicates you filed a chapter 11 case and that explains how income and withheld income tax reported to you on Forms W-2 and 1099 are allocated between you and the estate.

Community Property States

Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. If you and your spouse lived in a community property state, you must usually follow state law to determine what is community income and what is separate income. For details, see Pub. 555.

California domestic partners. A registered domestic partner in California must report all wages, salaries, and other compensation received for his or her personal services on his or her own return. Therefore, a registered domestic partner cannot report half the combined income earned by the individual and his or her domestic partner as a married person filing separately does in California.

Rounding Off to Whole Dollars

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Line 7

Wages, Salaries, Tips, etc.

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.

Wages received as a household employee for which you did not receive a Form W-2 because your employer paid you less than $1,500 in 2007. Also, enter "HSH" and the amount not reported on Form W-2 on the dotted line next to line 7.
Tip income you did not report to your employer. Also include allocated tips shown on your Form(s) W-2 unless you can prove that you received less. Allocated tips should be shown in box 8 of your Form(s) W-2. They are not included as income in box 1. See Pub. 531 for more details.

CAUTION: You may owe social security and Medicare tax on unreported or allocated tips. See the instructions for line 59 on
page 41.

Dependent care benefits, which should be shown in box 10 of your Form(s) W-2. But first complete Form 2441 to see if you can exclude part or all of the benefits.
Employer-provided adoption benefits, which should be shown in box 12 of your Form(s) W-2 with code T. But see the Instructions for Form 8839 to find out if you can exclude part or all of the benefits. You may also be able to exclude amounts if you adopted a child with special needs and the adoption became final in 2007.
Scholarship and fellowship grants not reported on Form W-2. Also, enter “ SCH ” and the amount on the dotted line next to line 7. However, if you were a degree candidate, include on line 7 only the amounts you used for expenses other than tuition and course-related expenses. For example, amounts used for room, board, and travel must be reported on line 7.
Excess salary deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the “ Retirement plan ” box in box 13 should be checked. If the total amount you (or your spouse if filing jointly) deferred for 2007 under all plans was more than $15,500 (excluding catch-up contributions as explained below), include the excess on line 7. This limit is (a) $10,500 if you only have SIMPLE plans, or (b) $18,500 for section 403(b) plans if you qualify for the 15-year rule in Pub. 571. Although designated Roth contributions are subject to this limit, do not include the excess attributable to such contributions on line 7. They are already included as income in box 1 of your Form W-2.

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.

If you were age 50 or older at the end of 2007, your employer may have allowed an additional deferral (catch-up contributions) of up to $5,000 ($2,500 for section 401(k)(11) and SIMPLE plans). This additional deferral amount is not subject to the overall limit on elective deferrals.

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

Disability pensions shown on Form 1099-R if you have not reached the minimum retirement age set by your employer. Disability pensions received after you reach that age and other payments shown on Form 1099-R (other than payments from an IRA*) are reported on lines 16a and 16b. Payments from an IRA are reported on lines 15a and 15b.
Corrective distributions from a retirement plan shown on Form 1099-R of excess salary deferrals and excess contributions (plus earnings). But do not include distributions from an IRA* on line 7. Instead, report distributions from an IRA on lines 15a and 15b.
Wages from Form 8919, line 6.

* This includes a Roth, SEP, or SIMPLE IRA.

Were You a Statutory Employee?

If you were, the “ Statutory employee ” box in box 13 of your Form W-2 should be checked. Statutory employees include full-time 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.

Missing or Incorrect Form W-2?

Your employer is required to provide or send Form W-2 to you no later than
January 31, 2008. If you do not receive it by early February, use TeleTax topic 154 (see page 79) 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.

Line 8a

Taxable Interest

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 2007 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 2007 income. For details, see
Pub. 550.

TIP: If you get a 2007 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2007, see Pub. 550.

Line 8b

Tax-Exempt Interest

If you received any tax-exempt interest, such as from municipal bonds, each payer should send you a Form 1099-INT. Your tax-exempt interest, plus any exempt-interest dividends from a mutual fund or other regulated investment company, should be included in box 8 of Form 1099-INT. Enter the total on line 8b. Do not include interest earned on your IRA or Coverdell education savings account.

Line 9a

Ordinary Dividends

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 Form(s) 1099-DIV.

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.

Nondividend Distributions

Some distributions 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.

TIP: Dividends on insurance policies are a partial return of the premiums you paid. Do not report them as dividends. Include them in income on line 21 only if they exceed the total of all net premiums you paid for the contract.

Line 9b

Qualified Dividends

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 Form(s) 1099-DIV. See Pub. 550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.

Exception. Some dividends may be reported as qualified dividends in box 1b of Form 1099-DIV but are not qualified dividends. These include:

Dividends you received as a nominee. See the Instructions for Schedule B.
Dividends you received on any share of stock that you held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. When counting the number of days you held the stock, include the day you disposed of the stock but not the day you acquired it. See the examples on this page. Also, when counting the number of days you held the stock, you cannot count certain days during which your risk of loss was diminished. See Pub. 550 for more details.
Dividends attributable to periods totaling more than 366 days that you received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. When counting the number of days you held the stock, you cannot count certain days during which your risk of loss was diminished. See Pub. 550 for more details. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule on this page.
Dividends on any share of stock to the extent that you are under an obligation (including a short sale) to make related payments with respect to positions in substantially similar or related property.
Payments in lieu of dividends, but only if you know or have reason to know that the payments are not qualified dividends.

Example 1. You bought 5,000 shares of XYZ Corp. common stock on June 28, 2007. XYZ Corp. paid a cash dividend of 10 cents per share. The ex-dividend date was July 6, 2007. Your Form 1099-DIV from XYZ Corp. shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). However, you sold the 5,000 shares on August 1, 2007. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from June 29, 2007, through August 1, 2007). The 121-day period began on May 7, 2007 (60 days before the ex-dividend date), and ended on September 4, 2007. You have no qualified dividends from XYZ Corp. because you held the XYZ stock for less than 61 days.

Example 2. Assume the same facts as in Example 1 except that you bought the stock on July 5, 2007 (the day before the ex-dividend date), and you sold the stock on September 6, 2007. You held the stock for 63 days (from July 6, 2007, through September 6, 2007). The $500 of qualified dividends shown in box 1b of Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 6, 2007, through September 4, 2007).

Example 3. You bought 10,000 shares of ABC Mutual Fund common stock on June 28, 2007. ABC Mutual Fund paid a cash dividend of 10 cents a share. The ex-dividend date was July 6, 2007. The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. However, you sold the 10,000 shares on August 1, 2007. You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days.

TIP: Be sure you use the Qualified Dividends and Capital Gain Tax Worksheet or the
Schedule D Tax Worksheet, whichever applies, to figure your tax. Your tax may be less if you use the worksheet that applies. See the instructions for line 44 that begin on page 33 for details.

Line 10

Taxable Refunds, Credits, or Offsets of State and Local Income Taxes

TIP: None of your refund is taxable if, in the year you paid the tax, you either (a) did not itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes.

If you received a refund, credit, or offset of state or local income taxes in 2007, you may receive a Form 1099-G. If you chose to apply part or all of the refund to your 2007 estimated state or local income tax, the amount applied is treated as received in 2007. If the refund was for a tax you paid in 2006 and you deducted state and local income taxes on line 5 of your 2006 Schedule A, use the worksheet below to see if any of your refund is taxable.

Exception. See Itemized Deduction Recoveries in Pub. 525 instead of using the worksheet below if any of the following applies.

You received a refund in 2007 that is for a tax year other than 2006.
You received a refund other than an income tax refund, such as a general sales tax or real property tax refund, in 2007 of an amount deducted or credit claimed in an earlier year.
The amount on your 2006 Form 1040, line 42, was more than the amount on your 2006 Form 1040, line 41.
Your 2006 state and local income tax refund is more than your 2006 state and local income tax deduction minus the amount you could have deducted as your 2006 state and local general sales taxes.
You made your last payment of 2006 estimated state or local income tax in 2007.
You owed alternative minimum tax in 2006.
You could not deduct the full amount of credits you were entitled to in 2006 because the total credits exceeded the amount shown on your 2006 Form 1040, line 46.
You could be claimed as a dependent by someone else in 2006.
You had to use the Itemized Deductions Worksheet in the 2006 Instructions for Schedules A&B because your 2006 adjusted gross income was over $150,500 ($75,250 if married filing separately) and both of the following apply.
1. You could not deduct all of the amount on the 2006 Itemized Deductions Worksheet, line 1.
2. The amount on line 8 of that 2006 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 2007.

Line 11

Alimony Received

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, see Pub. 504.

State and Local Income Tax Refund Worksheet—Line 10

Before you begin:

Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 525 to figure if any of your refund is taxable.


1.		Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the amount of your state and local income taxes shown on your 2006 Schedule A, line 5					1.
2.		Enter your total allowable itemized deductions from your 2006 Schedule A, line 28				2.

		Note. If the filing status on your 2006 Form 1040 was married filing separately and your spouse itemized deductions in 2006, 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 2006 Form 1040.
	Single or married filing separately— $5,150 Married filing jointly or qualifying widow(er)— $10,300				3.
	Head of household— $7,550
4.		Did you fill in line 39a on your 2006 Form 1040?
		No.	Enter -0-.
		Yes.	Multiply the number in the box on line 39a of your 2006 Form 1040 by $1,000 ($1,250 if your 2006 filing status was single or head of household).		4.
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.

Line 12

Business Income or (Loss)

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

Line 13

Capital Gain or (Loss)

If you had a capital gain or loss, including any capital gain distributions or a capital loss carryover from 2006, you must complete and attach Schedule D.

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

The only amounts you have to report on Schedule D are capital gain distributions from Form(s) 1099-DIV, box 2a, or substitute statements.
None of the Form(s) 1099-DIV or substitute statements have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).

If both of the above apply, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 13 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 13 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.

TIP: If you do not have to file Schedule D, use the Qualified Dividends and Capital Gain Tax Worksheet on page 35 to figure your tax. Your tax is usually less if you use this worksheet.

Line 14

Other Gains or (Losses)

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

Lines 15a and 15b

IRA Distributions

You should receive a Form 1099-R showing the amount of any distribution from your 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 1. Enter the total distribution on line 15a if you rolled over part or all of the distribution from one:

IRA to another IRA of the same type (for example, from one traditional IRA to another traditional IRA), or
SEP or SIMPLE IRA to a traditional IRA.

Also, enter “ Rollover ” next to line 15b. If the total distribution was rolled over in a qualified rollover, enter -0- on line 15b. If the total distribution was not rolled over in a qualified rollover, enter the part not rolled over on line 15b unless Exception 2 applies to the part not rolled over. Generally, a qualified rollover must be made within 60 days after the day you received the distribution. For more details on rollovers, see
Pub. 590. If you rolled over the distribution into a qualified plan other than an IRA or you made the rollover in 2008, attach a statement explaining what you did.

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 2007 or an earlier year. If you made nondeductible contributions to these IRAs for 2007, also see Pub. 590.
You received a distribution from a Roth IRA. But if either (a) or (b) 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 Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 2002 or an earlier year.
2. Distribution code Q is shown in box 7 of Form 1099-R.
You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2007.
You had a 2006 or 2007 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 2007.
You recharacterized part or all of a contribution to a Roth IRA as a traditional IRA contribution, or vice versa.

Exception 3. If the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 15a. If the total amount distributed is a QCD, enter -0- on line 15b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 15b unless Exception 2 applies to that part. Enter “ QCD ” next to line 15b. A QCD is a distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions (with certain exceptions). You must have been at least age 70½ when the distribution was made. Your total QCDs for the year cannot be more than $100,000. (On a joint return, your spouse can also have a QCD of up to $100,000.) The amount of the QCD is limited to the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. See Pub. 590 for details.

CAUTION:You cannot claim a charitable contribution deduction for any QCD not included in your income.

Exception 4. If the distribution is a qualified health savings account (HSA) funding distribution (HFD), enter the total distribution on line 15a. If the total amount distributed is an HFD and you elect to exclude it from income, enter -0- on line 15b. If only part of the distribution is an HFD and you elect to exclude that part from income, enter the part that is not an HFD on line 15b unless Exception 2 applies to that part. Enter “ HFD ” next to line 15b. An HFD is a distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to your HSA. If eligible, you generally can elect to exclude an HFD from your income once in your lifetime. You cannot exclude more than the limit on HSA contributions or more than the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income. See Pub. 590 for details.

CAUTION:The amount of an HFD reduces the amount you can contribute to your HSA for the year. If you fail to maintain eligibility for an HSA for the 12 months following the month of the HFD, you may have to report the HFD as income and pay an additional tax. See Form 8889, Part III.

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.

CAUTION: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, 1936, and received less than the minimum required distribution from your traditional, SEP, and SIMPLE IRAs. See the instructions for line 60 that begin on page 41 for details.

Lines 16a and 16b

Pensions and Annuities

You should receive a Form 1099-R showing the amount of your pension and annuity payments, including distributions from 401(k) and 403(b) plans. See this page and page 23 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.

Disability pensions received before you reach the minimum retirement age set by your employer.
Corrective distributions (including any earnings) of excess salary deferrals or excess contributions to retirement plans. The plan must advise you of the year(s) the distributions are includible in income.

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

Fully Taxable Pensions and Annuities

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 this page) of your pension or annuity, or (b) you got your entire cost back tax free before 2007. But see Insurance Premiums for Retired Public Safety Officers on this page.

Simplified Method Worksheet—Lines 16a and 16b

Before you begin:

If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, include any death benefit exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below.

Note. If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040, line 16b. Enter the total pension or annuity payments received in 2007 on Form 1040, line 16a.

1.	Enter the total pension or annuity payments received in 2007. Also, enter this amount on Form 1040, line 16a						1.
2.	Enter your cost in the plan at the annuity starting date				2.
	Note. If you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Otherwise, go to line 3.
3.	Enter the appropriate number from Table 1 below. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below				3.
4.	Divide line 2 by the number on line 3				4.
5.	Multiply line 4 by the number of months for which this year's payments were made. If your annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8. Otherwise, go to line 6				5.
6.	Enter the amount, if any, recovered tax free in years after 1986. If you completed this worksheet last year, enter the amount from line 10 of last year's worksheet				6.
7.	Subtract line 6 from line 2				7.
8.	Enter the smaller of line 5 or line 7						8.
9.	Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form 1040, line 16b. If your Form 1099-R shows a larger amount, use the amount on this line instead of the amount from Form 1099-R. If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers on page 22 before entering an amount on line 16b.						9.
10.	Was your annuity starting date before 1987?
	Yes.	Leave line 10 blank.
	No.	Add lines 6 and 8. This is the amount you have recovered tax free through 2007. You will need this number when you fill out this worksheet next year					10.

Table 1 for Line 3 Above
			AND your annuity starting date was—
	IF the age at annuity starting date (see page 22) was . . .		before November 19, 1996, enter on line 3 . . .			after November 18, 1996, enter on line 3 . . .
	55 or under		300			360
	56-60		260			310
	61-65		240			260
	66-70		170			210
	71 or older		120			160
Table 2 for Line 3 Above
	IF the combined ages at annuity starting date (see page 22) were . . .			THEN enter on line 3 . . .
	110 or under			410
	111-120			360
	121-130			310
	131-140			260
	141 or older			210

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.

Partially Taxable Pensions and Annuities

Enter the total pension or annuity payments you received in 2007 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 below) was after July 1, 1986, see Simplified Method below 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 $380 fee. For details, see Pub. 939.

If your Form 1099-R shows a taxable amount, you can 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 or if the exclusion for retired public safety officers, discussed next, applies.

Insurance Premiums for Retired Public Safety Officers

If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. The premiums can be for coverage for you, your spouse, or dependents. The distribution must be made directly from the plan to the insurance provider. You can exclude from income the smaller of the amount of the insurance premiums or $3,000. You can only make this election for amounts that would otherwise be included in your income.

An eligible retirement plan is a governmental plan that is:

a qualified trust,
a section 403(a) plan,
a section 403(b) annuity, or
a section 457(b) plan.

If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The amount shown in box 2a of Form 1099-R does not reflect the exclusion. Report your total distributions on line 16a and the taxable amount on line 16b. Enter “ PSO ” next to line 16b.

Annuity Starting Date

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.

Simplified Method

You must use the Simplified Method if either of the following applies.

Your annuity starting date (defined above) was after July 1, 1986, and you used this method last year to figure the taxable part.
Your annuity starting date was after November 18, 1996, and both of the following apply.
1. The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.
2. On your annuity starting date, either you were under age 75 or the number of years of guaranteed payments was fewer than 5. See Pub. 575 for the definition of guaranteed payments.

If you must use the Simplified Method, complete the worksheet on page 23 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 benefits.

CAUTION: 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 23.

Age (or Combined Ages) at Annuity Starting Date

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.

Cost

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.

Rollovers

Generally, a qualified rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan within 60 days of receiving the distribution. Use lines 16a and 16b to report a qualified 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 of the qualified rollover. 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.

Lump-Sum Distributions

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 in a qualified rollover. For details, see the instructions for line 60 that begin on page 41.

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

TIP: You may be able to pay less tax on the distribution if you were born before January 2, 1936, or you are the beneficiary of a deceased employee who was born before January 2, 1936. For details, see Form 4972.

Line 19

Unemployment Compensation

You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you in 2007. Report the amount in box 1 on line 19. However, if you made contributions to a governmental unemployment compensation program and you are not itemizing deductions, reduce the amount you report on line 19 by those contributions.

If you received an overpayment of unemployment compensation in 2007 and you repaid any of it in 2007, 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 2007, you repaid unemployment compensation that you included in gross income in an earlier year, you can deduct the amount repaid on Schedule A, line 23. But if you repaid more than $3,000, see Repayments in Pub. 525 for details on how to report the repayment.

Lines 20a and 20b

Social Security Benefits

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 2007. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1099.

Use the worksheet on page 25 to see if any of your benefits are taxable.

Exception. Do not use the worksheet on page 25 if any of the following applies.

You made contributions to a traditional IRA for 2007 and you or your spouse were covered by a retirement plan at work or through self-employment. Instead, use the worksheets in Pub. 590 to see if any of your social security benefits are taxable and to figure your IRA deduction.
You repaid any benefits in 2007 and your total repayments (box 4) were more than your total benefits for 2007 (box 3). None of your benefits are taxable for 2007. Also, you may be able to take an itemized deduction or a credit for part of the excess repayments if they were for benefits you included in gross income in an earlier year. For more details, see Pub. 915.
You file Form 2555, 2555-EZ, 4563, or 8815, or you exclude employer-provided adoption benefits or income from sources within Puerto Rico. Instead, use the worksheet in Pub. 915.

Line 21

Other Income

CAUTION: 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 9 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 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. Nontaxable amounts include:

Child support.
Life insurance proceeds received because of someone's death (other than from certain employer-owned life insurance contracts).
Gifts and bequests. However, if you received a gift or bequest from a foreign person of more than $13,258, you may have to report information about it on Form 3520, Part IV. See the instructions for Form 3520.

Examples of income to report on line 21 are:

Taxable distributions from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Distributions from these accounts may be taxable if (a) they are more than the qualified higher education expenses of the designated beneficiary in 2007, and (b) they were not included in a qualified rollover. Nontaxable distributions from these accounts, including rollovers, do not have to be reported on Form 1040. See Pub. 970.

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

CAUTION: You may have to pay an additional tax if you received a taxable distribution from an HSA or an Archer MSA. See the Instructions for Form 8889 for HSAs or the Instructions for Form 8853 for Archer MSAs.

TIP: Attach Form(s) W-2G to
Form 1040 if any federal income tax was withheld.

Taxable distributions from a health savings account (HSA) or an Archer MSA. Distributions from these accounts may be taxable if (a) they are more than the unreimbursed qualified medical expenses of the account beneficiary or account holder in 2007, and (b) they were not included in a qualified rollover. See Pub. 969.
Amounts deemed to be income from an HSA because you did not remain an eligible individual during the testing period. See Form 8889, Part III.
Prizes and awards.
Gambling winnings, including lotteries, raffles, a lump-sum payment from the sale of a right to receive future lottery payments, etc. For details on gambling losses, see the instructions for Schedule A, line 28, on page A-10.
Jury duty pay. Also, see the instructions for line 36 on page 31.
Alaska Permanent Fund dividends.
Alternative trade adjustment assistance payments. These payments should be shown in box 5 of Form 1099-G.
Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, general sales taxes, or home mortgage interest. See Recoveries in Pub. 525 for details on how to figure the amount to report.
Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property. Also, see the instructions for line 36 on page 31.
Income from an activity not engaged in for profit. See Pub. 535.
Loss on certain corrective distributions of excess deferrals. See Retirement Plan Contributions in Pub. 525.
Dividends on insurance policies if they exceed the total of all net premiums you paid for the contract.
Recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property. See Fractional Interest in Tangible Personal Property in Pub. 526. Interest and an additional 10% tax apply to the amount of the recapture. See the instructions for line 44 on page 33.
Recapture of a charitable contribution deduction if the charitable organization disposes of the donated property within 3 years of the contribution. See Recapture if no exempt use in Pub. 526.
Canceled debts. These amounts may be shown in box 2 of Form 1099-C.

Social Security Benefits Worksheet—Lines 20a and 20b

Before you begin:

Complete Form 1040, lines 21 and 23 through 32, if they apply to you.
Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 31).
If you are married filing separately and you lived apart from your spouse for all of 2007, enter “ D ” to the right of the word “ benefits ” on line 20a.
Be sure you have read the Exception on page 24 to see if you can use this worksheet instead of a publication to find out if any of your benefits are taxable.


1.	Enter the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099. Also, enter this amount on Form 1040, line 20a			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 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 through 32, and any write-in adjustments you entered on the dotted line next to line 36				6.
7.	Is the amount on line 6 less than the amount on line 5?
		No.	None of your social security benefits are taxable. Enter -0- on Form 1040, line 20b.
		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 2007, enter $25,000				8.
	Married filing separately and you lived with your spouse at any time in 2007, 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. Enter -0- on Form 1040, line 20b. If you are married filing separately and you lived apart from your spouse for all of 2007, 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 2007				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. Also enter this amount on Form 1040, line 20b				18.
		If any of your benefits are taxable for 2007 and they include a lump-sum benefit payment that was for an earlier year, you may be able to reduce the taxable amount. See Pub. 915 for details.

Adjusted Gross Income

Line 23

Educator Expenses

If you were an eligible educator in 2007, you can deduct on line 23 up to $250 of qualified expenses you paid in 2007. 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 on line 23. You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A, line 21. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked 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.

Excludable U.S. series EE and I savings bond interest from Form 8815.
Nontaxable qualified tuition program earnings or distributions.
Any nontaxable distribution of Coverdell education savings account earnings.
Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2.

For more details, use TeleTax topic 458 (see page 79) or see Pub. 529.

Line 24

Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials

Include the following deductions on line 24.

Certain business expenses of National Guard and reserve members who traveled more than 100 miles from home to perform services as a National Guard or reserve member.
Performing-arts-related expenses as a qualified performing artist.
Business expenses of fee-basis state or local government officials.

For more details, see Form 2106 or 2106-EZ.

Line 25

Health Savings Account (HSA) Deduction

You may be able to take this deduction if contributions (other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA) were made to your HSA for 2007. See Form 8889.

Line 26

Moving Expenses

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 79) or see Form 3903.

Line 27

One-Half of Self-Employment Tax

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

Line 28

Self-Employed SEP, SIMPLE, and Qualified Plans

If you were self-employed or a partner, you may be able to take this deduction.

Line 29

Self-Employed Health Insurance Deduction

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

You were self-employed and had a net profit for the year.
You used one of the optional methods to figure your net earnings from self-employment on Schedule SE.
You received wages in 2007 from an S corporation in which you were a more-than-2% shareholder. Health insurance benefits paid for you may be shown in box 14 of Form W-2.

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 2007, 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. Also, amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction.

Self-Employed Health Insurance Deduction Worksheet—Line 29

Before you begin:

If, during 2007, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA recipient, or Pension Benefit Guaranty Corporation pension recipient, see the Note on page 26.
Be sure you have read the Exception on page 26 to see if you can use this worksheet instead of Pub. 535 to figure your deduction.

1.	Enter the total amount paid in 2007 for health insurance coverage established under your business
	for 2007 for you, your spouse, and your dependents. But do not include amounts for any month you were eligible to participate in an employer-sponsored health plan or amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer	1.
2.	Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Form 1040, lines 27 and 28	2.
3.	Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on Form 1040, line 29. Do not include this amount in figuring any medical expense deduction on Schedule A	3.
* If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the amount from Schedule SE, Section B, line 4b.
** Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it does not include capital gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is established, earned income is your Medicare wages (box 5 of Form W-2) from that corporation.

For more details, see Pub. 535.

Note.

If, during 2007, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA recipient, or Pension Benefit Guaranty Corporation pension recipient, you must complete Form 8885 before completing the worksheet on page 27. When figuring the amount to enter on line 1 of the worksheet on page 27, do not include:

Any amounts you included on Form 8885, line 4,
Any qualified health insurance premiums you paid to “ U.S. Treasury-HCTC, ” or
Any health coverage tax credit advance payments shown in box 1 of Form 1099-H.

If you qualify to take the deduction, use the worksheet on page 27 to figure the amount you can deduct.

Exception. Use Pub. 535 instead of the worksheet on page 27 to figure your deduction if any of the following applies.

You had more than one source of income subject to self-employment tax.
You file Form 2555 or 2555-EZ.
You are using amounts paid for qualified long-term care insurance to figure the deduction.

Line 30

Penalty on Early Withdrawal of Savings

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

Lines 31a and 31b

Alimony Paid

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 79) or see Pub. 504.

Line 32

IRA Deduction

TIP: If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2007, you must report them on Form 8606.

If you made contributions to a traditional IRA for 2007, 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 alimony and separate maintenance payments reported on line 11. If you were a member of the U.S. Armed Forces, earned income includes any nontaxable combat pay you received. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor. For more details, see Pub. 590. A statement should be sent to you by May 31, 2008, that shows all contributions to your traditional IRA for 2007.

Use the worksheet on pages 28 and 29 to figure the amount, if any, of your IRA deduction. But read the following list before you fill in the worksheet.

If you were age 70½ or older at the end of 2007, you cannot deduct any contributions made to your traditional IRA for 2007 or treat them as nondeductible contributions.
You cannot deduct contributions to a Roth IRA. But you may be able to take the retirement savings contributions credit (saver's credit). See the instructions for line 53 on page 41.

CAUTION: If you are filing a joint return and you or your spouse made contributions to both a traditional IRA and a Roth IRA for 2007, do not use the worksheet on pages 28 and 29. Instead, see Pub. 590 to figure the amount, if any, of your IRA deduction.

You cannot deduct elective deferrals to a 401(k) plan, section 457 plan, SIMPLE plan, or the federal Thrift Savings Plan. These amounts are not included as income in box 1 of your Form W-2. But you may be able to take the retirement savings contributions credit. See the instructions for line 53 on page 41.
If you made contributions to your IRA in 2007 that you deducted for 2006, do not include them in the worksheet.
If you received income from a nonqualified deferred compensation plan or nongovernmental section 457 plan that is included in box 1 of your Form W-2, or in box 7 of Form 1099-MISC, do not include that income on line 8 of the worksheet. The income should be shown in (a) box 11 of your Form W-2, (b) box 12 of your Form W-2 with code Z, or (c) box 15b of Form 1099-MISC. If it is not, contact your employer or the payer for the amount of the income.
You must file a joint return to deduct contributions to your spouse's IRA. Enter the total IRA deduction for you and your spouse on line 32.
Do not include qualified rollover contributions in figuring your deduction. Instead, see the instructions for lines 15a and 15b that begin on page 21.
Do not include trustees' fees that were billed separately and paid by you for your IRA. These fees can be deducted only as an itemized deduction on Schedule A.
Do not include any repayments of qualified reservist distributions. You cannot deduct them. For information on how to report these repayments, see Qualified reservist repayments in Pub. 590.
If the total of your IRA deduction on line 32 plus any nondeductible contribution to your traditional IRAs shown on Form 8606 is less than your total traditional IRA contributions for 2007, see Pub. 590 for special rules.
You may be able to deduct up to an additional $3,000 if all the following conditions are met.
1. You must have been a participant in a 401(k) plan under which the employer matched at least 50% of your contributions to the plan with stock of the company.
2. You must have been a participant in the 401(k) plan 6 months before the employer filed for bankruptcy.
3. The employer (or a controlling corporation) must have been a debtor in a bankruptcy case in an earlier year.
4. The employer (or any other person) must have been subject to indictment or conviction based on business transactions related to the bankruptcy.

If this applies to you, do not use the worksheet on pages 28 and 29. Instead, use the worksheet in Pub. 590.

TIP: 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.

Were You Covered by a Retirement Plan?

If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. But you can still make contributions to an IRA even if you cannot deduct them. In any case, the income earned on your IRA contributions is not taxed until it is paid to you.

The “ Retirement plan ” box in box 13 of your Form W-2 should be checked if you were covered by a plan at work even if you were not vested in the plan. You are also covered by a plan if you were self-employed and had a SEP, SIMPLE, or qualified retirement plan.

If you were covered by a retirement plan and you file Form 2555, 2555-EZ, or 8815, or you exclude employer-provided adoption benefits, see Pub. 590 to figure the amount, if any, of your IRA deduction.

Married persons filing separately. If you were not covered by a retirement plan but your spouse was, you are considered covered by a plan unless you lived apart from your spouse for all of 2007.

TIP: You may be able to take the retirement savings contributions credit. See the instructions for line 53 on page 41.

IRA Deduction Worksheet—Line 32

Note

CAUTION: If you were age 70½ or older at the end of 2007, you cannot deduct any contributions made to your traditional IRA or treat them as nondeductible contributions. Do not complete this worksheet for anyone age 70½ or older at the end of 2007. If you are married filing jointly and only one spouse was under age 70½ at the end of 2007, complete this worksheet only for that spouse.

Before you begin:

Be sure you have read the list on page 27. You may not be eligible to use this worksheet.
Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 31).

Your IRA

Spouse's IRA

1a.

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

1a.

es No

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 the applicable amount below on line 7a (and line 7b if applicable), and go to line 8.

$4,000, if under age 50 at the end of 2007.
$5,000, if age 50 or older but under age 70½ at the end of 2007.

Otherwise, go to line 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 2007, enter $62,000

Qualifying widow(er), enter $103,000

2a.

2b.

Married filing jointly, enter $103,000 in both columns. But if you checked
“ No ” on either line 1a or 1b, enter $166,000 for the person who was not
covered by a plan
Married filing separately and you lived with your spouse at any time in 2007,
enter $10,000

Enter the amount from Form 1040, line 22

Enter the total of the amounts from Form 1040, lines 23 through 31a, plus any write-in adjustments you entered on the dotted line next to line 36

Subtract line 4 from line 3. If married filing jointly, enter the result in both columns

5a.

5b.

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. Follow the instruction below that applies to you.

If single, head of household, or married filing separately, and the result is $10,000 or more, enter the applicable amount below on
line 7 for that column and go to line 8.
i. $4,000, if under age 50 at the end of 2007.
ii. $5,000, if age 50 or older but under age 70½ at the end
of 2007.
Otherwise, go to line 7.

6a.

6b.

If married filing jointly or qualifying widow(er), and the result is
$20,000 or more ($10,000 or more in the column for the IRA of
a person who was not covered by a retirement plan), enter the
applicable amount below on line 7 for that column and go to
line 8.
i. $4,000, if under age 50 at the end of 2007.
ii. $5,000 if age 50 or older but under age 70½ at the end
of 2007.
Otherwise, go to line 7.

IRA Deduction Worksheet—Line 32 (continued)

Your IRA

Spouse's IRA

Multiply lines 6a and 6b by the percentage below that applies to you. 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.

Single, head of household, or married filing separately, multiply by 40%
(.40)(or by 50% (.50) in the column for the IRA of a person who is age
50 or older at the end of 2007)

7a.

7b.

Married filing jointly or qualifying widow(er), multiply by 20% (.20) (or by
25% (.25) in the column for the IRA of a person who is age 50 or older at
the end of 2007). But if you checked “ No ” on either line 1a or 1b, then in
the column for the IRA of the person who was not covered by a retirement
plan, multiply by 40% (.40) (or by 50% (.50) if age 50 or older at the end
of 2007)

Enter the total of your (and your spouse's if filing jointly):

Wages, salaries, tips, etc. Generally, this is the
amount reported in box 1 of Form W-2. See page 27
for exceptions

Alimony and separate maintenance payments reported
on Form 1040, line 11

Nontaxable combat pay. This amount should be
reported in box 12 of Form W-2 with code Q

Enter the earned income you (and your spouse if filing jointly) received as a self-employed individual or a partner. Generally, this is your (and your spouse's if filing jointly) net earnings from self-employment if your personal services were a material income-producing factor, minus any deductions on Form 1040, lines 27 and 28. If zero or less, enter -0-. For more details, see Pub. 590

10.

Add lines 8 and 9

10.

If married filing jointly and line 10 is less than $8,000 ($9,000 if one spouse is age 50 or older at the end of 2007; $10,000 if both spouses are age 50 or older at the end of 2007), stop here and see Pub. 590 to figure your IRA deduction.

11.

Enter traditional IRA contributions made, or that will be made by April 15, 2008, for 2007 to your IRA on line 11a and to your spouse's IRA on line 11b

11a.

11b.

12.

On line 12a, enter the smallest of line 7a, 10, or 11a. On line 12b, enter the smallest of line 7b, 10, or 11b. This is the most you can deduct. Add the amounts on lines 12a and 12b and enter the total on Form 1040, line 32. Or, if you want, you can deduct a smaller amount and treat the rest as a nondeductible contribution (see Form 8606)

12a.

12b.

Line 33

Student Loan Interest Deduction

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

You paid interest in 2007 on a qualified student loan (see below).
Your filing status is any status except married filing separately.
Your modified adjusted gross income (AGI) is less than: $70,000 if single, head of household, or qualifying widow(er); $140,000 if married filing jointly. Use lines 2 through 4 of the worksheet below to figure your modified AGI.
You, or your spouse if filing jointly, are not claimed as a dependent on someone's (such as your parent's) 2007 tax return.

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

Exception. Use Pub. 970 instead of the worksheet below to figure your student loan interest deduction if you file Form 2555, 2555-EZ, or 4563, or you exclude income from sources within Puerto Rico.

Qualified student loan. A qualified student loan is any loan you took out to pay the qualified higher education expenses for any of the following individuals.

Yourself or your spouse.
Any person who was your dependent when the loan was taken out.
Any person you could have claimed as a dependent for the year the loan was taken out except that:
1. The person filed a joint return,
2. The person had gross income that was equal to or more than the exemption amount for that year ($3,400 for 2007), or
3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's return.

The person for whom the expenses were paid must have been an eligible student (see this page). 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 33

Before you begin:

Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 31).

Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 970 to figure your deduction.


1.		Enter the total interest you paid in 2007 on qualified student loans (see 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 through 32, plus any write-in adjustments you entered on the dotted line next to line 36		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)—$55,000 Married filing jointly—$110,000			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 33. Do not include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.)			9.

Qualified higher education expenses. 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.

Employer-provided educational assistance benefits that are not included in box 1 of Form(s) W-2.
Excludable U.S. series EE and I savings bond interest from Form 8815.
Any nontaxable distribution of qualified tuition program earnings.
Any nontaxable distribution of Coverdell education savings account earnings.
Any scholarship, educational assistance allowance, or other payment (but not gifts, inheritances, etc.) excluded from income.

Eligible student. An eligible student is a person who:

Was enrolled in a degree, certificate, or other program (including a program of study abroad that was approved for credit by the institution at which the student was enrolled) leading to a recognized educational credential at an eligible educational institution, and
Carried at least half the normal full-time workload for the course of study he or she was pursuing.

Line 34

Tuition and Fees Deduction

If you paid qualified tuition and fees for yourself, your spouse, or your dependent(s), you may be able to take this deduction. See Form 8917.

TIP: You may be able to take a credit for your educational expenses instead of a deduction. See the instructions for line 49 on page 37 for details.

Line 35

Domestic Production Activities Deduction

You may be able to deduct up to 6% of your qualified production activities income from the following activities.

Construction of real property performed in the United States.
Engineering or architectural services performed in the United States for construction of real property in the United States.
Any lease, rental, license, sale, exchange, or other disposition of:
1. Tangible personal property, computer software, and sound recordings that you manufactured, produced, grew, or extracted in whole or in significant part within the United States,
2. Any qualified film you produced, or
3. Electricity, natural gas, or potable water you produced in the United States.

The deduction does not apply to income derived from:

The sale of food and beverages you prepared at a retail establishment;
Property you leased, licensed, or rented for use by any related person;
The transmission or distribution of electricity, natural gas, or potable water; or
The lease, rental, license, sale, exchange, or other disposition of land.

For details, see Form 8903 and its instructions.

Line 36

Include in the total on line 36 any of the following write-in adjustments. To find out if you can take the deduction, see the form or publication indicated. On the dotted line next to line 36, enter the amount of your deduction and identify it as indicated.

Archer MSA deduction (see Form 8853). Identify as “ MSA. ”
Jury duty pay if you gave the pay to your employer because your employer paid your salary while you served on the jury. Identify as “ Jury Pay. ”
Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Identify as “ PPR. ”
Reforestation amortization and expenses (see Pub. 535). Identify as “ RFST. ”
Repayment of supplemental unemployment benefits under the Trade Act of 1974 (see Pub. 525). Identify as “ Sub-Pay TRA. ”
Contributions to section 501(c)(18)(D) pension plans (see Pub. 525). Identify as “ 501(c)(18)(D). ”
Contributions by certain chaplains to section 403(b) plans (see Pub. 517). Identify as “ 403(b). ”
Attorney fees and court costs for actions settled or decided after October 22, 2004, involving certain unlawful discrimination claims, but only to the extent of gross income from such actions (see Pub. 525). Identify as “ UDC. ”
Attorney fees and court costs paid by you in connection with an award from the IRS for information you provided after December 19, 2006, that substantially contributed to the detection of tax law violations, up to the amount of the award includible in your gross income. Identify as “ WBF. ”

Line 37

If line 37 is less than zero, you may have a net operating loss that you can carry to another tax year. See the Instructions for Form 1045 for details.

Tax and Credits

Line 39a

If you were born before January 2, 1943, or were blind at the end of 2007, check the appropriate box(es) on line 39a. If you were married and checked the box on Form 1040, line 6b, and your spouse was born before January 2, 1943, or was blind at the end of 2007, also check the appropriate box(es) for your spouse. Be sure to enter the total number of boxes checked.

Blindness

If you were partially blind as of December 31, 2007, you must get a statement certified by your eye doctor or registered optometrist that:

You cannot see better than 20/200 in your better eye with glasses or contact lenses, or
Your field of vision is 20 degrees or less.

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.

Line 39b

If your filing status is married filing separately (box 3 is checked), and your spouse itemizes deductions on his or her return, check the box on line 39b. Also check that box if you were a dual-status alien. But if you were a dual-status alien and you file a joint return with your spouse who was a U.S. citizen or resident alien at the end of 2007 and you and your spouse agree to be taxed on your combined worldwide income, do not check the box.

Line 40

Itemized Deductions or Standard Deduction

In most cases, your federal income tax will be less if you take the larger of your itemized deductions or standard deduction.

CAUTION: If you checked the box on line 39b, your standard deduction is zero.

Itemized Deductions

To figure your itemized deductions, fill in Schedule A.

Standard Deduction

Most people can find their standard deduction by looking at the amounts listed under “ All others ” to the left of Form 1040, line 40. But if you, or your spouse if filing jointly, can be claimed as a dependent on someone's 2007 return or you checked any box on line 39a, use the worksheet or the chart on page 32, whichever applies, to figure your standard deduction. Also, if you checked the box on line 39b, your standard deduction is zero, even if you were born before January 2, 1943, or were blind.

Standard Deduction Worksheet for Dependents—Line 40

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

1.		Is your earned income * more than $550?
		Yes.	Add $300 to your earned income. Enter the total	.	1.
		No.	Enter $850
2.		Enter the amount shown below for your filing status.
	Single or married filing separately—$5,350 Married filing jointly—$10,700 Head of household—$7,850			.	2.
3.		Standard deduction.
	a.	Enter the smaller of line 1 or line 2. If born after January 1, 1943, and not blind, stop here and enter this amount on Form 1040, line 40. Otherwise, go to line 3b			3a.
	b.	If born before January 2, 1943, or blind, multiply the number on Form 1040, line 39a, by $1,050 ($1,300 if single or head of household)			3b.
	c.	Add lines 3a and 3b. Enter the total here and on Form 1040, line 40			3c.
* 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 27.

Standard Deduction Chart for People Who Were Born Before January 2, 1943, or Were Blind—Line 40

Do not use this chart if someone can claim you, or your spouse if filing jointly, as a dependent. Instead, use the worksheet above.
Enter the number from the box on Form 1040, line 39a		▶	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			$6,650 7,950
Married filing jointly or Qualifying widow(er)	1 2 3 4			$11,750 12,800 13,850 14,900
Married filing separately	1 2 3 4			$6,400 7,450 8,500 9,550
Head of household	1 2			$9,150 10,450

Line 44

Tax

Deduction for Exemptions Worksheet—Line 42

1.		Is the amount on Form 1040, line 38, more than the amount shown on line 4 below for your filing status?
		No.		Multiply $3,400 by the total number of exemptions claimed on Form 1040, line 6d, and enter the result on Form 1040, line 42.
		Yes.	Continue
2.		Multiply $3,400 by the total number of exemptions claimed on Form 1040, line 6d				2.
3.		Enter the amount from Form 1040, line 38			3.
4.		Enter the amount shown below for your filing status.
	Single—$156,400 Married filing jointly or qualifying widow(er)—$234,600 Married filing separately—$117,300 Head of household—$195,500				4.
5.		Subtract line 4 from line 3			5.
6.		Is line 5 more than $122,500 ($61,250 if married filing separately)?
		Yes.	Multiply $1,133 by the total number of exemptions claimed on Form 1040, line 6d. Enter the result here and on Form 1040, line 42. Do not complete the rest of this worksheet.
		No.	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.		Divide line 8 by 1.5				9.
10.		Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on Form 1040, line 42				10.

Include in the total on line 44 all of the following taxes that apply.

Tax on your taxable income. Figure the tax using one of the methods described on this page and page 34.
Tax from Form 8814 (relating to the election to report child's interest or dividends). Check the appropriate box.
Tax from Form 4972 (relating to lump-sum distributions). Check the appropriate box.
Tax from Form 8889, Part III (relating to health savings accounts). Check the appropriate box.
Recapture of an education credit. You may owe this tax if you claimed an education credit in an earlier year, and either tax-free educational assistance or a refund of qualified expenses was received in 2007 for the student. See Form 8863 for more details. Enter the amount and “ ECR ” in the space next to line 44.
Additional tax on recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property. See the instructions for line 21 on page 24. Enter the amount and “ FITPP ” in the space next to line 44.

Do you want the IRS to figure the tax on your taxable income for you?

□ Yes. See Pub. 967 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you did not pay enough, we will send you a bill.

□ No. Use one of the following methods to figure your tax.

Tax Table or Tax Computation Worksheet. If your taxable income is less than $100,000, you must use the Tax Table that begins on page 63 to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet on
page 75.

However, do not use the Tax Table or Tax Computation Worksheet to figure your tax if any of the following applies.

Form 8615. Form 8615 must generally be used to figure the tax for any child who was under age 18 at the end of 2007, and who had more than $1,700 of investment income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions). But if the child files a joint return for 2007 or if neither of the child's parents was alive at the end of 2007, do not use Form 8615 to figure the child's tax. Also, a child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8615 for such a child.

Schedule D Tax Worksheet. If you have to file Schedule D and Schedule D, line 18 or 19, is more than zero, use the Schedule D Tax Worksheet on page D-10 of the Instructions for Schedule D to figure your tax.

Qualified Dividends and Capital Gain Tax Worksheet. If you do not have to use the Schedule D Tax Worksheet (see above), use the worksheet on page 35 to figure your tax if any of the following applies.

You reported qualified dividends on Form 1040, line 9b.
You do not have to file Schedule D and you reported capital gain distributions on Form 1040, line 13.
You are filing Schedule D and Schedule D, lines 15 and 16, are both more than zero.

Schedule J. If you had income from farming or fishing, your tax may be less if you choose to figure it using income averaging on Schedule J.

Foreign Earned Income Tax Worksheet. If you claimed the foreign earned income exclusion or the housing exclusion on Form 2555 or Form 2555-EZ, you must figure your tax using the worksheet below.

Foreign Earned Income Tax Worksheet—Line 44

Before you begin:

See the instructions above to see if you must use this worksheet to figure your tax.

1.	Enter the amount from Form 1040, line 41		1.
2.	Enter the amount from Form 1040, line 42		2.
3.	Subtract line 2 from line 1. If less than zero, enter the amount in parentheses		3.
4.	Enter the amount from your (and your spouse's, if filing jointly) Form 2555, line 45, or Form 2555-EZ, line 18	4.
5.	Enter the total amount of any itemized deductions you could not claim because they are related to excluded income	5.
6.	Subtract line 5 from line 4. If zero or less, enter -0-		6.
7.	Combine lines 3 and 6. If zero or less, enter -0-		7.
8.	Tax on amount on line 7. Use the Tax Table, Tax Computation Worksheet, Schedule D Tax Worksheet, Qualified Dividends and Capital Gain Tax Worksheet, or Form 8615**, whichever applies. See the instructions for line 44 that begin on page 33 to see which tax computation method applies			8.
9.	Tax on amount on line 6. Use the Tax Table or Tax Computation Worksheet, whichever applies			9.
10.	Subtract line 9 from line 8. Enter the result. If zero or less, enter -0-. Also include this amount on Form 1040, line 44			10.
*Enter the amount from line 7 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet if you use either of those worksheets to figure the tax on line 8 above. Complete the rest of either of those worksheets according to the worksheet's instructions. Then complete lines 9 and 10 above.
**If you use Form 8615 to figure the tax on line 8 above, enter the amount from line 7 above on line 4 of Form 8615. If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 7 and 8 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Complete the rest of Form 8615 according to its instructions. Then complete lines 9 and 10 above .

Qualified Dividends and Capital Gain Tax Worksheet—Line 44

Before you begin:

See the instructions for line 44 that begin on page 33 to see if you can use this worksheet to figure your tax.
If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Form 1040.

1.	Enter the amount from Form 1040, line 43			1.
2.	Enter the amount from Form 1040, line 9b		2.
3.	Are you filing Schedule D?
	Yes.	Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is a loss, enter -0-	3.
	No.	Enter the amount from Form 1040, line 13
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
	$31,850 if single or married filing separately,			8.
	$63,700 if married filing jointly or qualifying widow(er), $42,650 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 11; go to line 12 and check the "No" box.
	No.	Enter the amount from line 7		9.
10.	Subtract line 9 from line 8			10.
11.	Multiply line 10 by 5% (.05)				11.
12.	Are the amounts on lines 6 and 10 the same?
	Yes.	Skip lines 12 through 15; go to line 16.
	No.	Enter the smaller of line 1 or line 6		12.
13.	Enter the amount from line 10 (if line 10 is blank, enter -0-)			13.
14.	Subtract line 13 from line 12			14.
15.	Multiply line 14 by 15% (.15)				15.
16.	Figure the tax on the amount on line 7. Use the Tax Table or Tax Computation Worksheet, whichever applies				16.
17.	Add lines 11, 15, and 16				17.
18.	Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies				18.
19.	Tax on all taxable income. Enter the smaller of line 17 or line 18. Also include this amount on Form 1040, line 44				19.

Line 45

Alternative Minimum Tax

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

Worksheet To See if You Should Fill in Form 6251—Line 45

Before you begin:

Be sure you have read the Exception above to see if you must fill in Form 6251 instead of using this worksheet.
If you are claiming the foreign tax credit (see the instructions for Form 1040, line 51, that begin on page 37), enter that credit on line 51.

1.		Are you filing Schedule A?
		No.	Skip lines 1 through 3; enter on line 4 the amount from Form 1040, line 38, and go to line 5.
		Yes.	Enter the amount from Form 1040, line 41		1.
2.		Enter the smaller of the amount on Schedule A, line 4, or 2.5% (.025) of the amount on Form 1040, line 38. If zero or less, enter -0-			2.
3.		Enter the total of the amounts from Schedule A, lines 9 and 27			3.
4.		Add lines 1 through 3 above			4.
5.		Enter any tax refund from Form 1040, lines 10 and 21			5.
6.		Subtract line 5 from line 4			6.
7.		Enter the amount shown below for your filing status.
	Single or head of household—$33,750 Married filing jointly or qualifying widow(er)—$45,000 Married filing separately—$22,500				7.
8.		Is the amount on line 6 more than the amount on line 7?
		No.		You do not need to fill in Form 6251.
		Yes.	Subtract line 7 from line 6		8.
9.		Enter the amount shown below for your filing status.
	Single or head of household—$112,500 Married filing jointly or qualifying widow(er)—$150,000 Married filing separately—$75,000				9.
10.		Is the amount on line 6 more than the amount on line 9?
		No.	Skip lines 10 and 11; enter on line 12 the amount from line 8, and go to line 13.
		Yes.	Subtract line 9 from line 6		10.
11.		Multiply line 10 by 25% (.25) and enter the smaller of the result or line 7 above			11.
12.		Add lines 8 and 11			12.
13.		Is the amount on line 12 more than $175,000 ($87,500 if married filing separately)?
		Yes.		Fill in Form 6251 to see if you owe the alternative minimum tax.
		No.	Multiply line 12 by 26% (.26)		13.
14.		Enter the amount from Form 1040, line 44, minus the total of any tax from Form 4972 and any amount on Form 1040, line 51. If you used Schedule J to figure your tax, the amount for Form 1040, line 44, must be refigured without using Schedule J			14.
Next. Is the amount on line 13 more than the amount on line 14?
		Yes.	Fill in Form 6251 to see if you owe the alternative minimum tax.
		No.	You do not owe alternative minimum tax and do not need to fill in Form 6251. Leave line 45 blank.

. 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.
Credit for child care and dependent care expenses.
Credit for the elderly or the disabled.
Education credits.
Residential energy credits.
Mortgage interest credit.
District of Columbia first-time homebuyer credit.
Any general business credit claimed on Form 3800.
Empowerment zone and renewal community employment credit.
Qualified electric vehicle credit.
Alternative motor vehicle credit.
Alternative fuel vehicle refueling property credit.
Credit for prior year minimum tax.

CAUTION: Form 6251 should be filled in for a child who was under age 18 at the end of 2007 if the child's adjusted gross income from Form 1040, line 38, exceeds the child's earned income by more than $6,300.

Line 47

Credit for Child and Dependent Care Expenses

You may be able to take this credit if you paid someone to care for:

Your qualifying child under age 13 whom you claim as your dependent.
Your disabled spouse who could not care for himself or herself, and who lived with you for more than half the year.
Any disabled person not able to care for himself or herself, who lived with you for more than half the year, and whom you claim as a dependent.
Any disabled person not able to care for himself or herself, who lived with you for more than half the year, and whom you could have claimed as a dependent except that:
1. The person filed a joint return,
2. The person had $3,400 or more of gross income, or
3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2007 return.
Your child whom you could not claim as a dependent because of the rules for Children of divorced or separated parents that begin on page 16.

For details, use TeleTax topic 602 (see page 79) or see Form 2441.

Line 48

Credit for the Elderly or the Disabled

You may be able to take this credit if by the end of 2007 (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 38, 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.

Credit figured by the IRS. If you can take this credit and you want us to figure it for you, see the Instructions for Schedule R.

Line 49

Education Credits

If you (or your dependent) paid qualified expenses in 2007 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 applies.

You, or your spouse if filing jointly, are claimed as a dependent on someone's (such as your parent's) 2007 tax return.
Your filing status is married filing separately.
The amount on Form 1040, line 38, is $57,000 or more ($114,000 or more if married filing jointly).
You are taking a deduction for tuition and fees on Form 1040, line 34, for the same student.
You, or your spouse, were a nonresident alien for any part of 2007 unless your filing status is married filing jointly.

Line 50

Residential Energy Credits

Complete Form 5695 to claim either of the following credits.

Nonbusiness energy property credit. You may be able to take this credit for any of the following improvements to your main home located in the United States in 2007 if they are new and meet certain requirements for energy efficiency.

Any insulation material or system primarily designed to reduce heat gain or loss in your home.
Exterior windows (including skylights).
Exterior doors.
A metal roof with pigmented coatings primarily designed to reduce heat gain in your home.

You may also be able to take this credit for the cost of any of the following items if the items meet certain performance and quality standards.

Certain electric heat pump water heaters, electric heat pumps, geothermal heat pumps, central air conditioners, and natural gas, propane, or oil water heaters.
A qualified natural gas, propane, or oil furnace or hot water boiler.
An advanced main air circulating fan used in a natural gas, propane, or oil furnace.

For details, see Form 5695.

Residential energy efficient property credit. You may be able to take this credit if you paid for any of the following during 2007.

Qualified solar electric property for use in your home located in the United States.
Qualified solar water heating property for use in your home located in the United States.
Qualified fuel cell property installed on or in connection with your main home located in the United States.

For details, see Form 5695.

Special rule. If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of these credits.

Line 51

Foreign Tax Credit

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.

Exception. You do not have to complete Form 1116 to take this credit if all five of the following apply.

All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement).
If you had dividend income from shares of stock, you held those shares for at least 16 days.
You are not filing Form 4563 or excluding income from sources within Puerto Rico.
The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly).
All of your foreign taxes were:
1. Legally owed and not eligible for a refund, and
2. Paid to countries that are recognized by the United States and do not support terrorism.

For more details on these requirements, see the Instructions for Form 1116. Do you meet all five requirements above?

□ Yes. See Election to Claim the Foreign Tax Credit Without Filing Form 1116 in the Instructions for Form 1116 to figure the amount to enter on Form 1040, line 51.

□ No. See Form 1116 to find out if you can take the credit and, if you can, if you have to file Form 1116.

Line 52—Child Tax Credit

Three Steps To Take the Child Tax Credit!

Step 1.	Make sure you have a qualifying child for the child tax credit (see the instructions for line 6c).
Step 2.	Make sure that for each qualifying child you either checked the box on Form 1040, line 6c, column (4), or completed Form 8901 (if the child is not your dependent).
Step 3.	Answer the questions on this page to see if you can use the worksheet on page 40 to figure your credit or if you must use Pub. 972.

Who Must Use Pub. 972

1. Is the amount on Form 1040, line 38, more than the amount shown below for your filing status?

Married filing jointly - $110,000

Single, head of household, or qualifying widow(er) - $75,000

Married filing separately - $55,000

Yes.

You must use Pub. 972 to figure your credit.

No.

Go to question 2.

2. Are you claiming any of the following credits?

Residential energy credits, Form 5695.

Retirement savings contributions credit, Form 8880.

Mortgage interest credit, Form 8396.

District of Columbia first-time homebuyer credit, Form 8859.

Adoption credit, Form 8839.

Yes.

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.

No. Continue

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

Form 2555 or 2555-EZ (relating to foreign earned income).

Form 4563 (exclusion of income for residents of American Samoa).

Yes.

You must use Pub. 972 to figure your credit.

No.

Use the worksheet on page 40 to figure your credit.

Line 53

Retirement Savings Contributions Credit (Saver's Credit)

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) or 403(b) plan (including designated Roth contributions) or to a 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.

The amount on Form 1040, line 38, is more than $26,000 ($39,000 if head of household; $52,000 if married filing jointly).
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1990, (b) is claimed as a dependent on someone else's 2007 tax return, or (c) was a student (defined below).

You were a student if during any part of 5 calendar months of 2007 you:

Were 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.

For more details, use TeleTax topic 610 (see page 79) or see Form 8880.

Line 54

Include the following credits on line 54 and check the appropriate box(es). To find out if you can take the credit, see the form indicated.

Mortgage interest credit. If a state or local government gave you a mortgage credit certificate, see Form 8396.
District of Columbia first-time homebuyer credit. See Form 8859.
Adoption credit. You may be able to take this credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2007. See the Instructions for Form 8839.

Line 55

Other Credits

Include the following credits on line 55 and check the appropriate box(es). If box c is checked, also enter the applicable form number. To find out if you can take the credit, see the form or publication indicated.

Credit for prior year minimum tax. If you paid alternative minimum tax in a prior year, see Form 8801.
Qualified electric vehicle credit. This credit does not apply to vehicles placed in service after 2006. However, you may be able to take the credit if you received a 2006 Schedule K-1 showing the credit from an entity with a fiscal year ending in 2007 or have an unallowed passive activity credit from a prior year. See Form 8834.
General business credit. This credit consists of a number of credits that usually apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See Form 3800 or Pub. 334.
Empowerment zone and renewal community employment credit. See
Form 8844.
Credit for alcohol used as fuel. See Form 6478.
Renewable electricity, refined coal, and Indian coal production credit for electricity and refined coal produced at facilities placed in service after October 22, 2004, and Indian coal produced at facilities placed in service after August 8, 2005. See Form 8835, Section B.
Work opportunity credit. See Form 5884.
Credit for employer social security and Medicare taxes paid on certain employee tips. See Form 8846.
New York Liberty Zone business employee credit. If you have a carryforward of this credit, see Form 5884.
Qualified zone academy bond credit. This credit applies only to S corporation shareholders. See Form 8860.
Clean renewable energy bond credit. See Form 8912.
Credit for Gulf tax credit bonds. See Form 8912.
Alternative motor vehicle credit. If you placed an alternative motor vehicle (such as a qualified hybrid vehicle) in service during 2007, see Form 8910.
Alternative fuel vehicle refueling property credit. See Form 8911.

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