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

Topic #15 – 2011 Form 1040 Exclusive – Other Taxes

Line 56 - Self-employed tax. Attach Schedule SE

If you owe self-employment taxes, enter in on this line.

Line 57 – Unreported social security and Medicare tax form: a. 4137; b. 8919

Enter the total of any taxes from Form 4137 and Form 8919. Check the appropriate box(es).

Form 4137

If you received tips of $20 or more in any month and you did not report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the un-

reported tips. Do not include the value of any noncash tips, such as tickets or passes. You do not pay social security and Medicare taxes or RRTA tax on these noncash tips. To figure the social security and Medicare tax, use Form 4137. If you owe RRTA tax, contact your employer. Your employer will figure and collect the RRTA tax.

CAUTION

You may be charged a penalty equal to 50% of the social security and Medicare or RRTA tax due on tips you received but did not report to your employer.

Form 8919

If you are an employee who received wages from an employer who did not withhold social security and Medicare tax from your wages, use Form 8919 to figure your share of the unreported tax. Include on line 57 the amount from line 13 of Form 8919. Include the amount from line 6 of Form 8919 on Form 1040, line 7.

Line 58 – Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required

If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329.

1) You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution was not rolled over in a qualified rollover contribution.

2) Excess contributions were made to your IRAs, Coverdell education savings ac-counts (ESAs), Archer MSAs, or health savings accounts (HSAs).

3) You received taxable distributions from Coverdell ESAs or qualified tuition programs.

4) You were born before July 1, 1940, and did not take the minimum required distribution from your IRA or other qualified retirement plan

Exception

If only item (1) applies and distribution code 1 is correctly shown in box 7 of Form 1099-R, you do not have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (.10) and enter the result on line 58. The taxable amount of the distribution is the part of the distribution you reported on Form 1040, line 15b or line 16b, or on Form 4972. Also, enter “No” under the heading Other Taxes to the left of line 58 to indicate that you do not have to file Form 5329. But you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception, such as the exceptions for qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions, or a qualified reservist distribution.

Line 59a – Household employment taxes from Schedule H and

Enter the household employment taxes you owe for having a household employee. If any of the following apply, see Schedule H and its instructions to find out if you owe these taxes.

1) You paid any one household employee (defined below) cash wages of $1,700 or more in 2011. Cash wages include wages paid by check, money order, etc. But do not count amounts paid to an employee who was under age 18 at any time in 2011 and was a student.

2) You withheld federal income tax during 2011 at the request of any household employee.

3) You paid total cash wages of $1,000 or more in any calendar quarter of 2010 or 2011 to household employees.

Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, maids, yard workers, and similar domestic workers.

Line 59b – First-time homebuyer credit repayment. Attach Form 5405 if required

Enter the first-time homebuyer credit you have to repay if you:

1) Disposed of the home within 36 months after buying it,

2) Stopped using the home as your main home within 36 months after buying it, or

3) Bought the home in 2008. If you bought the home in 2008 and owned and used it as your main home for all of 2011, you can enter your 2011 repayment on this line without attaching Form 5405.

See the Form 5405 instructions for details and for exceptions to the repayment rule. Also see the Form 5405 instructions if the home you bought was destroyed, condemned, or disposed of under threat of condemnation and you did not buy a new home within 2 years.

Line 60 – other taxes. Enter code(s) from instructions

Use line 60 to report any taxes not reported elsewhere on your return or other schedules. To find out if you owe the tax, see the form or publication indicated. In the space next to line 60, enter the amount of the tax and the code that identifies it. If you need more room, attach a statement listing the line 60 the total of all of the following taxes amount of each tax and the code. Enter on you owe.

1) Additional tax on health savings account (HSA) distributions (see Form 8889, Part II). Identify as “HSA.”

2) Additional tax on an HSA because you did not remain an eligible individual during the testing period (see Form 8889, Part III). Identify as “HDHP.”

3) Additional tax on Archer MSA distributions (see Form 8853). Identify as “MSA.”

4) Additional tax on Medicare Advantage MSA distributions (see Form 8853). Identify as “Med MSA.”

5) Recapture of the following credits.

a) Investment credit (see Form 4255). Identify as “ICR.”

b) Low-income housing credit (see Form 8611). Identify as “LIHCR.”

c) Qualified plug-in electric vehicle credit (see Form 8834, Part I). Identify as “8834.”

d) Indian employment credit (see Form 8845). Identify as “IECR.”

e) New markets credit (see Form 8874). Identify as “NMCR.”

f) Credit for employer-provided childcare facilities (see Form 8882). Identify as “ECCFR.”

g) Alternative motor vehicle credit (see Form 8910). Identify as “AMVCR.”

h) Alternative fuel vehicle refueling property credit (see Form 8911). Identify as “ARPCR.”

i) Qualified plug-in electric drive motor vehicle credit (see Form 8936). Identify as “8936.”

6) Recapture of federal mortgage subsidy. If you sold your home in 2011 and it was financed (in whole or in part) from the proceeds of any tax-exempt qualified mortgage bond or you claimed the mortgage interest credit, see Form 8828. Identify as “FMSR.”

7) Recapture of COBRA premium assistance. If you received premium assistance under COBRA continuation coverage that covered you, your spouse, or any of your dependents, and your modified adjusted gross income is more than $125,000 ($250,000 if married filing jointly), see Pub. 502. Identify as “COBRA.”

8) Section 72(m)(5) excess benefits tax (see Pub. 560). Identify as “Sec. 72(m)(5).”

9) Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with codes A and B or M and N. Identify as “UT.”

10) Golden parachute payments. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in box 12 of Form W-2 with code K. If you received a Form

1099-MISC, the tax is 20% of the EPP shown in box 13. Identify as “EPP.”

11) Tax on accumulation distribution of trusts (see Form 4970). Identify as “ADT.”

12) Excise tax on insider stock compensation from an expatriated corporation. You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. See section 4985. Identify as “ISC.”

13) Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Identify as “453(l)(3).”

14) Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Identify as “453A(c).”

15) Additional tax on recapture of a charitable contribution deduction relating to a fractional interest in tangible personal property. See Pub. 526. Identify as “FITPP.”

16) Look-back interest under section 167(g) or 460(b). See Form 8697 or 8866. Identify as “From Form 8697” or “From Form 8866.”

17) Any negative amount on Form 8885, line 7, because of advance payments of the health coverage tax credit you received for months you were not eligible. Enter this additional tax as a positive amount. Identify as “HCTC.”

18) Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A. This income should be shown in box 12 of Form W-2 with code Z, or in box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as “NQDC.”

19) Additional tax on compensation you received from a nonqualified deferred compensation plan described in section 457A if the compensation would have been includible in your income in an earlier year except that the amount was not determinable until 2011. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 457A(c)(2). See section 457A for details. Identify as “457A.”

Line 61

Add lines 55 through 60 to get your total tax. If you are reading “Total Tax” because of what you read in the 2011 Form W-2 Instructions for Employee, see the line 60 instructions instead.

This concludes the section on Other Taxes of the 2011 Form 1040.

Next up: The payments section of the 2011 Form 1040.