Saturday, December 24, 2011

Topic #16 – 2011 Form 1040 Exclusive – Payments


Line 62 – Federal income tax withheld from Forms W-2 and 1099

Add the amounts shown as federal income tax withheld on your Forms W-2, W-2G, and 1099-R. Enter the total on line 62. The amount withheld should be shown in box 2 of Form W-2 or W-2G, and in box 4 of Form 1099-R. Attach Forms W-2G and 1099-R to the front of your return if federal income tax was withheld. If you received a 2011 Form 1099 showing federal income tax withheld on dividends, taxable or tax-exempt interest income, unemployment compensation, social security benefits, or other income you received, include the amount withheld in the total on line 62. This should be shown in box 4 of Form 1099 or box 6 of Form SSA-1099.



Line 63 – 2011 estimated tax payments and amount applied from 2010 return

Enter any estimated federal income tax payments you made for 2011. Include any overpayment that you applied to your 2011 estimated tax from:

1) Your 2010 return, or

2) An amended return (Form 1040X). If you and your spouse paid joint estimated tax but are now filing separate income tax returns, you can divide the amount paid in any way you choose as long as you both agree. If you cannot agree, you must divide the payments in proportion to each spouse’s individual tax as shown on your separate returns for 2011. For an example of how to do this, see Pub. 505. You may want to attach an explanation of how you and your spouse divided the payments. Be sure to show both social security numbers (SSNs) in the space provided on the separate returns. If you or your spouse paid separate estimated tax but you are now filing a joint return, add the amounts you each paid. Follow these instructions even if your spouse died in 2011 or in 2012 before filing a 2011 return.

Divorced Taxpayers

If you got divorced in 2011 and you made joint estimated tax payments with your former spouse, enter your former spouse’s SSN in the space provided on the front of Form 1040. If you were divorced and re-married in 2011, enter your present spouse’s SSN in the space provided on the front of Form 1040. Also, under the heading Payments to the left of line 63, enter your former spouse’s SSN, followed by “DIV.”

Name Change

If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of Form 1040. On the statement, explain all
the payments you and your spouse made in 2011 and the name(s) and SSN(s) under which you made them.



Line 64a – Earned income credit (EIC)

What Is the EIC?

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

To Take the EIC:

• Follow the steps in the 2011 Form 1040 Instructions.
• Complete the worksheet that applies to you or let the IRS figure the credit for you.
• If you have a qualifying child, complete and attach Schedule EIC. For help in determining if you are eligible for the EIC, go to www.irs.gov/eitc and click on “EITC Assistant.” This service is available in English and Spanish.

CAUTION

If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you will not be allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you will not be allowed to take the credit for 10 years. See Form 8862, who must file, later. You may also have to pay penalties.

Use the worksheet starting on page 45 of the 2011 Form 1040 instructions to figure out your earned income tax credit.



Line 64b – Nontaxable combat pay election

If you have nontaxable combat pay, you might want to make a comparison to see which if the inclusion gives you the greater amount.



Line 65 – Additional child tax credit. Attach Form 8812

What Is the Additional Child Tax Credit?

This credit is for certain people who have at least one qualifying child as defined in the instructions for line 6c. The additional child tax credit may give you a refund even if you do not owe any tax.

Two Steps To Take the Additional Child Tax Credit!

Step 1

Be sure you figured the amount, if any, of your child tax credit. See the instructions for line 51.

Step 2

Read the TIP at the end of your Child Tax Credit Worksheet. Use Form 8812 to see if you can take the additional child tax credit, but only if you meet the condition given in that TIP.



Line 66 – American opportunity credit from Form 8863, line 14

If you meet the requirements to claim an education credit (see the instructions for line 49), enter on line 66 the amount, if any, from Form 8863, line 14.



Line 67 – First-time homebuyer credit from Form 5405, line 10

You can claim this credit only if:

1) You (or your spouse if married) were a member of the uniformed services or Foreign Service, or an employee of the intelligence community, on qualified official extended duty outside the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010, and
2) You bought a main home in the United States in 2011 before May 1. For more details and additional requirements, see Form 5405 and its instructions.



Line 68 – Amount paid with request for extension to file

If you filed Form 4868 to get an automatic extension of time to file Form 1040, enter any amount you paid with that form or by electronic funds withdrawal, credit or debit card, or the Electronic Federal Tax Payment System (EFTPS). If you paid by credit or debit card, do not include on line 68 the convenience fee you were charged. Also, include any amounts paid with Form 2350. You may be able to deduct any credit or debit card convenience fees on your 2012 Schedule A.



Line 69 – Excess social security and tier 1 RRTA tax withheld

If you, or your spouse if filing a joint return, had more than one employer for 2011 and total wages of more than $106,800, too much social security or tier 1 railroad retirement (RRTA) tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $4,485.60. But if any one employer withheld more than $4,485.60, you cannot claim the excess on your return. The employer should adjust the tax for you. If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Figure this amount separately for you and your spouse. You cannot claim a refund for excess tier 2 RRTA tax on Form 1040. Instead, use Form 843.
For more details, see Pub. 505.



Line 70 – Credit for federal tax on fuels. Attach Form 4136

Enter any credit for federal excise taxes paid on fuels that are ultimately used for a nontaxable purpose (for example, an off-highway business use). Attach Form 4136.



Line 71 – Credits from Form: a. 2439; b. 8839; c. 8801; d. 8885

Check the box(es) on line 71 to report any credit from Form 2439, 8839, 8801 (line 27), or 8885. If you claim more than one of these credits, enter the total on line 71. If you are claiming a credit for repayment of amounts you included in your in- come in an earlier year because it appeared you had a right to the income, include the credit on line 71 and enter “I.R.C. 1341” to the right of line 71. See Pub. 525 for details about this credit.



Line 72

Add lines 62, 63, 64a, and 65 through 71. These are your total payments

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Next up: Refund, Amount You Owe, Third Party Designee, Sign Here, Paid Preparer Use Only

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