2000 Instruction(s) 1040 (General Inst.)

Revised Proof
Ok to Print
Rtext sent (date)
Requested (init. & date)
(init. & date)
Page 1 of 120 of OTC Instructions for Form 1040
3
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Note. This booklet does not contain any tax forms.
Department of the Treasury
1040
Internal Revenue Service
www.irs.gov
2000
Including Instructions for Schedules A, B,
C, D, E, F, R, and SE
,
For details
see page 3 or go
to www.irs.gov.
Fast Refunds!
TRIP
ROUND
CLICK.ZIP.FAST
Payments!
Electronic

Filing!
Paperless
Let Your Paid
Loan
Deal
Preparer
More Student
With the
Deductible!
Directly
Interest
Need Help?
IRS!
You may be able to deduct
Tax return page refer-
See page 14.
up to $2,000.
You can now check a box
ences. See pages 4 and 5. to
on your return if you want
Quick and easy access
to allow your paid preparer
tax help and forms. See
to resolve certain issues
page 7.
with the IRS. See page 14.
Cat. No. 11325E

A Message From
Dear Taxpayer:
the Commissioner
With the arrival of the Year 2001 tax filing season, the IRS continues to make
tangible improvements in the way we serve you. We have worked hard over the
past year to make filing and paying your taxes easier and more convenient.
Millions of taxpayers are visiting our Web Site at www.irs.gov to get
information and download forms and publications. Assistance on our toll-free
telephone lines continues to improve so that more taxpayers can get through and
get the answers they need. We are resolving long-standing problems and making
sure that your rights are protected. We believe that these are some very positive
trends upon which we can build this year, and in the years to come.
However, we still have a long way to go before we can provide the level and
quality of service that you expect and deserve. We are in the midst of the most
comprehensive modernization of the IRS in more than 50 years. That includes
changes to our organization and technology. Many years of hard work lie ahead
but we are committed to making the IRS work better, and work better for you.
Thank you.
Sincerely,
Charles O. Rossotti
The IRS Mission
Provide America's taxpayers top quality service by helping them understand and meet their tax
responsibilities and by applying the tax law with integrity and fairness to all.
- 2 -

The Future of Tax
Filing Is Here!
The Fastest, Most Accurate Way To
File Your Tax Return
Take advantage of the benefits of IRS e-file!
FREE Filing! For free tax preparation and filing options, check out
the IRS Web Site at www.irs.gov and click on "Electronic Services."
Fast Refunds! You get your refund in half the time, even faster and
safer with Direct Deposit -- in as few as 10 days.
Security! Your privacy and security are assured.
Accuracy! Your chance of getting an error notice from the IRS is
significantly reduced because IRS e-file has less than a 1% error rate.
NEW Paperless Filing! Create your own Personal Identification
Number (PIN) and file a completely paperless return. There are no
forms to mail!
Proof of Acceptance! You get electronic acknowledgement within
48 hours that the IRS has accepted your return.
Electronic Payments! Convenient, safe, and secure electronic payment
options are available. Schedule a direct debit payment for withdrawal
or pay by credit card -- up to and including April 16, 2001.
File Federal and State Taxes Together! Double the benefits you get
from e-file.
Get all the details on page 54 or
check out the IRS Web Site at www.irs.gov,
click on "Electronic Services."
- 3 -

Tax Return Page Reference
Questions about what to put on a line? Help is on the page number in the circle.
Department of the Treasury--Internal Revenue Service
2000
Form
1040 U.S. Individual Income Tax Return
(99)
IRS Use Only--Do not write or staple in this space.
For the year Jan. 1Dec. 31, 2000, or other tax year beginning
, 2000, ending
, 20
19
OMB No. 1545-0074
Your first name and initial
Last name
Your social security number
Label
(See
L
19
instructions
A
B
If a joint return, spouse's first name and initial
Last name
Spouse's social security number
on page 19.)
E
19
FOR REFERENCE ONLY--DO NOT FILE
L
Use the IRS
label.
Home address (number and street). If you have a P.O. box, see page 19.
Apt. no.
H
Important!
Otherwise,
E
R
please print
You must enter
E
City, town or post office, state, and ZIP code. If you have a foreign address, see page 19.
or type.
your SSN(s) above.
Presidential
You
Spouse
Election Campaign
Note. Checking "Yes" will not change your tax or reduce your refund.
19
(See page 19.)
Do you, or your spouse if filing a joint return, want $3 to go to this fund?
Yes
No
Yes
No
1
Single
Filing Status
2
Married filing joint return (even if only one had income)
3
Married filing separate return. Enter spouse's social security no. above and full name here.
19
Check only
4
Head of household (with qualifying person). (See page 19.) If the qualifying person is a child but not your dependent,
one box.
enter this child's name here.
5
Qualifying widow(er) with dependent child (year spouse died
). (See page 19.)
6a
Yourself. If your parent (or someone else) can claim you as a dependent on his or her tax
No. of boxes
Exemptions 19
return, do not check box 6a
checked on
6a and 6b
b
Spouse
No. of your
(3) Dependent's
(4)
if qualifying
c
Dependents:
(2) Dependent's
children on 6c
relationship to
child for child tax
social security number
who:
(1) First name
Last name
you
credit (see page 20)
lived with you
did not live with
If more than six
you due to divorce
20
20
dependents,
20
or separation
20
see page 20.
(see page 20)
Dependents on 6c
not entered above
Add numbers
entered on
d
Total number of exemptions claimed
lines above
7
7
Wages, salaries, tips, etc. Attach Form(s) W-2
21
Income 52
8a
8a
Taxable interest. Attach Schedule B if required
21
8b
b
Tax-exempt interest. Do not include on line 8a
21
Attach
Forms W-2 and
B-1
9
9
Ordinary dividends. Attach Schedule B if required
21
W-2G here.
10
10
Taxable refunds, credits, or offsets of state and local income taxes (see page 22)
22
Also attach
11
22
Form(s) 1099-R
11
Alimony received
if tax was
12
12
Business income or (loss). Attach Schedule C or C-EZ
23
withheld.
13
13
Capital gain or (loss). Attach Schedule D if required. If not required, check here
23
21
14
14
Other gains or (losses). Attach Form 4797
23
15a
23
15b
If you did not
15a
Total IRA distributions
b Taxable amount (see page 23)
23
get a W-2,
16a
23
16b
16a
Total pensions and annuities
b Taxable amount (see page 23)
23
see page 21.
17
17
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
Enclose, but do
18
18
Farm income or (loss). Attach Schedule F
not attach, any
19
19
Unemployment compensation
25
payment. Also,
20a
25
20b
25
please use
20a
Social security benefits
b Taxable amount (see page 25)
25
Form 1040-V. 51
21
21
Other income. List type and amount (see page 25)
22
Add the amounts in the far right column for lines 7 through 21. This is your total income
22
23
27
23
IRA deduction (see page 27)
Adjusted
24
24
Student loan interest deduction (see page 27)
27
Gross
Medical savings account deduction. Attach Form 8853
25
25
29
Income
26
26
Moving expenses. Attach Form 3903
29
One-half of self-employment tax. Attach Schedule SE
27
27
29
Self-employed health insurance deduction (see page 29)
28
28
29
Self-employed SEP, SIMPLE, and qualified plans
29
29
30
30
Penalty on early withdrawal of savings
30
30
31a
Alimony paid
b Recipient's SSN
31a
30
30
32
Add lines 23 through 31a
32
33
Subtract line 32 from line 22. This is your adjusted gross income
33
30
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 56.
Cat. No. 11320B
Form 1040 (2000)
- 4 -

Tax Return Page Reference
Questions about what to put on a line? Help is on the page number in the circle.
Form 1040 (2000)
30
Page 2
34
Amount from line 33 (adjusted gross income)
34
Tax and
35a
Check if:
Credits
You were 65 or older,
Blind;
Spouse was 65 or older,
Blind.
Add the number of boxes checked above and enter the total here
35a
b If you are married filing separately and your spouse itemizes deductions, or
31
you were a dual-status alien, see page 31 and check here
A-1
35b
Standard
36
Enter your itemized deductions from Schedule A, line 28, or standard deduction shown
Deduction
for Most
on the left. But see page 31 to find your standard deduction if you checked any box on
People
line 35a or 35b or if someone can claim you as a dependent
36
31
Single:
37
37
Subtract line 36 from line 34
$4,400
38
If line 34 is $96,700 or less, multiply $2,800 by the total number of exemptions claimed on
Head of
38
line 6d. If line 34 is over $96,700, see the worksheet on page 32 for the amount to enter
32
household:
$6,450
39
39
Taxable income. Subtract line 38 from line 37. If line 38 is more than line 37, enter -0-
32
Married filing
40
40
Tax (see page 32). Check if any tax is from a
Form(s) 8814
b
Form 4972
32
jointly or
41
33
Qualifying
41
Alternative minimum tax. Attach Form 6251
widow(er):
42
Add lines 40 and 41
42
NEW
$7,350
43
43
Foreign tax credit. Attach Form 1116 if required
34
Married
filing
44
Credit for child and dependent care expenses. Attach Form 2441
44
35
separately:
45
Credit for the elderly or the disabled. Attach Schedule R
45
35
$3,675
46
46
Education credits. Attach Form 8863
35
32
47
47
Child tax credit (see page 36)
36
48
Adoption credit. Attach Form 8839
48
38
49
Other. Check if from a
Form 3800
b
Form 8396
49
38
c
Form 8801
d
Form (specify)
50
Add lines 43 through 49. These are your total credits
50
51
Subtract line 50 from line 42. If line 50 is more than line 42, enter -0-
51
52
52
Self-employment tax. Attach Schedule SE
Other
53
38
Taxes
53
Social security and Medicare tax on tip income not reported to employer. Attach Form 4137
54
Tax on IRAs, other retirement plans, and MSAs. Attach Form 5329 if required
54
38
55
55
Advance earned income credit payments from Form(s) W-2
38
56
Household employment taxes. Attach Schedule H
56
38
57
Add lines 51 through 56. This is your total tax
57
38
Payments 58
Federal income tax withheld from Forms W-2 and 1099
58
39
59
59
2000 estimated tax payments and amount applied from 1999 return
39
If you have a
40
60a
Earned income credit (EIC)
60a
qualifying
child, attach
b
Nontaxable earned income: amount
42
Schedule EIC.
and type
42
50
61
61
Excess social security and RRTA tax withheld (see page 50)
50
62
Additional child tax credit. Attach Form 8812
62
63
50
63
Amount paid with request for extension to file (see page 50)
50
64
Other payments. Check if from a
Form 2439 b
Form 4136
64
65
Add lines 58, 59, 60a, and 61 through 64. These are your total payments
65
66
66
If line 65 is more than line 57, subtract line 57 from line 65. This is the amount you overpaid
Refund
50
67a
67a
Amount of line 66 you want refunded to you
50
Have it
directly
deposited!
b
Routing number
c Type:
Checking
Savings
See page 50
and fill in 67b,
d
Account number
67c, and 67d.
68
Amount of line 66 you want applied to your 2001 estimated tax
68
51
69
Amount
If line 57 is more than line 65, subtract line 65 from line 57. This is the amount you owe.
51
For details on how to pay, see page 51
69
You Owe
70
Estimated tax penalty. Also include on line 69
70
52
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and
Sign
belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Here
Your signature
Date
Your occupation
Daytime phone number
Joint return?
52
NEW
52
See page 19.
52
()
Keep a copy
Spouse's signature. If a joint return, both must sign.
Date
Spouse's occupation
May the IRS discuss this return with the preparer
for your
records.
shown below (see page 52)?
Yes
No
Date
Preparer's SSN or PTIN
Preparer's
52
Check if
Paid
signature
self-employed
Preparer's Firm's name (or
EIN
Use Only
yours if self-employed),
address, and ZIP code
Phone no.
()
NEW
- 5 -
Form 1040 (2000)

IRS Customer Service Standards
At the IRS our goal is to continually improve the
Prompt refunds
quality of our services. To achieve that goal, we have
Initial contact resolution
developed
customer
service
standards
in
the
Canceling penalties
following areas:
Resolving problems
Easier filing and payment options

Simpler forms
Access to information

If you would like information about the IRS
Accuracy
standards and a report of our accomplishments, see
Pub. 2183.
Help With Unresolved Tax Issues
Office of the Taxpayer Advocate
Contacting Your Taxpayer Advocate
Information You Should
Be Prepared To Provide
If you have attempted to deal with an IRS problem
unsuccessfully, you should contact your Taxpayer
Your name, address, and social security number (or
Advocate.
employer identification number)
The Taxpayer Advocate independently represents your
Your telephone number and hours you can be reached
interests and concerns within the IRS by protecting your
The type of tax return and year(s) involved
rights and resolving problems that have not been fixed
A detailed description of your problem
through normal channels.
Your previous attempts to solve the problem and the
While Taxpayer Advocates cannot change the tax law or
office you contacted, and
make a technical tax decision, they can clear up problems
Description of the hardship you are facing (if
that resulted from previous contacts and ensure that your
applicable)
case is given a complete and impartial review.
How To Contact Your Taxpayer Advocate
Handling Your Tax Problems
Call the Taxpayer Advocate's toll-free number:
Your assigned personal advocate will listen to your point of
1-877-777-4778
view and will work with you to address your concerns. You
can expect the advocate to provide you with:
Call, write, or fax the Taxpayer Advocate office in your

area (see Pub. 1546 for addresses and phone numbers)
A "fresh look" at your new or on-going problem

TTY/TDD help is available by calling 1-800-829-4059
Timely acknowledgment
The name and phone number of the individual assigned
to your case
Updates on progress
Timeframes for action
Speedy resolution
Courteous service
- 6 -

Quick and Easy Access to Tax Help and Forms
Note. If you live outside the United States, see Pub. 54 to
Phone
find out how to get help and forms.
You can get forms, publications, and
automated information 24 hours a day,
Personal Computer
7 days a week, by phone.
You can access the IRS Web Site
Forms and Publications
24 hours a day, 7 days a week, at
www.irs.gov to:
Call 1-800-TAX-FORM (1-800-829-3676) to order current
and prior year forms, instructions, and publications. You
Download forms, instructions, and publications
should receive your order within 10 days.
See answers to frequently asked tax questions
TeleTax Topics
Search publications on-line by topic or keyword
Call 1-800-829-4477 to listen to pre-recorded messages

covering about 150 tax topics. See pages 11 and 12 for a list
Figure your withholding allowances using our W-4
of the topics.
calculator
Send us comments or request help by e-mail
Refund Information
Sign up to receive local and national tax news by
You can check the status of your 2000 refund using
e-mail
TeleTax's Refund Information service. See page 11.
You can also reach us using File Transfer Protocol
Walk-In
at ftp.irs.gov
You can pick up some of the most
requested forms, instructions, and
Fax
publications at many IRS offices, post
offices, and libraries. Some IRS offices,
You can get over 100 of the most
libraries, grocery stores, office supply
requested forms and instructions
stores, and copy centers have an extensive collection of
24 hours a day, 7 days a week, by fax.
products available to photocopy or print from a CD-ROM.
Just call 703-368-9694 from the
telephone connected to the fax machine.
See pages 8 and 9 for a list of the items
CD-ROM
available.
Order Pub. 1796, Federal Tax Products
on CD-ROM, and get:
Mail
You can order forms, instructions, and
Current year forms, instructions, and publications
publications by completing the order
blank on page 57. You should receive
Prior year forms, instructions, and publications
your order within 10 days after we
receive your request.
Popular tax forms that may be filled in
electronically, printed out for submission, and saved
for recordkeeping
The Internal Revenue Bulletin
Buy the CD-ROM on the Internet at www.irs.gov/cdorders
from the National Technical Information Service (NTIS) for
$21 (no handling fee) or call 1-877-CDFORMS
(1-877-233-6767) toll free to buy the CD-ROM for $21 (plus
a $5 handling fee).
You can also get help in other ways--See page 55 for
information.
- 7 -

Forms
The following forms and instructions are available through our Tax Fax service 24 hours
a day, 7 days a week. Just call 703-368-9694 from the telephone connected to the fax
by Fax
machine. When you call, you will hear instructions on how to use the service. Select the
option for getting forms. Then, enter the Catalog Number (Cat. No.) shown below for
each item you want. When you hang up the phone, the fax will begin.
No.
No.
Name of Form
Cat.
of
Name of Form
Cat.
of
or Instructions
Title of Form or Instructions
No.
Pages
or Instructions
Title of Form or Instructions
No.
Pages
Form SS-4
Application for Employer
16055
4
Schedule A
Organization Exempt Under Section
11285
6
Identification Number
(Form 990)
501(c)(3)
Instr. Sch. A
11294
8
Form SS-8
Determination of Worker Status for
16106
4
(Form 990)
Purposes of Federal Employment
Taxes and Income Tax Withholding
Form 990-EZ
Short Form Return of Organization
10642
2
Exempt From Income Tax
Form W-2c
Corrected Wage and Tax Statement
61437
8
Instr. 990-EZ
Specific Instructions for Form 990-EZ
50003
9
Form W-3c
Transmittal of Corrected Wage and
10164
2
Tax Statements
Form 1040
U.S. Individual Income Tax Return
11320
2
Instr. W-2c
25978
4
Instr. 1040
Line Instructions for Form 1040
11325
34
and W-3c
Instr. 1040
General Information for Form 1040
24811
26
Form W-4
Employee's Withholding Allowance
10220
2
Tax Table and
Tax Table and Tax Rate Schedules
24327
13
Certificate
Tax Rate Sch.
(Form 1040)
Form W-4P
Withholding Certificate for Pension
10225
4
Schedules A&B
Itemized Deductions & Interest and
11330
2
or Annuity Payments
(Form 1040)
Ordinary Dividends
Instr. Sch. A&B
24328
8
Form W-5
Earned Income Credit Advance
10227
3
Payment Certificate
Schedule C
Profit or Loss From Business
11334
2
(Form 1040)
(Sole Proprietorship)
Form W-7
Application for IRS Individual
10229
3
Instr. Sch. C
24329
8
Taxpayer Identification Number
Schedule C-EZ
Net Profit From Business
14374
2
Form W-7A
Application for Taxpayer
24309
2
(Form 1040)
(Sole Proprietorship)
Identification Number for Pending
Schedule D
Capital Gains and Losses
11338
2
U.S. Adoptions
(Form 1040)
Form W-7P
Application for Preparer Tax
26781
1
Instr. Sch. D
24331
8
Identification Number
Schedule D-1
Continuation Sheet for
10424
2
Form W-9
Request for Taxpayer Identification
10231
2
(Form 1040)
Schedule D
Number and Certification
Schedule E
Supplemental Income and Loss
11344
2
Instr. W-9
20479
2
(Form 1040)
Instr. Sch. E
24332
6
Form W-9S
Request for Student's or Borrower's
25240
2
Taxpayer Identification Number and
Schedule EIC
Earned Income Credit
13339
2
Certification
(Form 1040A
or 1040)
Form W-10
Dependent Care Provider's
10437
1
Identification and Certification
Schedule F
Profit or Loss From Farming
11346
2
(Form 1040)
Form 709
U.S. Gift (and Generation-Skipping
16783
4
Instr. Sch. F
24333
7
Transfer) Tax Return
Instr. 709
16784
8
Schedule H
Household Employment Taxes
12187
2
(Form 1040)
Form 709A
U.S. Short Form Gift Tax Return
10171
2
Instr. Sch. H
21451
8
Form 843
Claim for Refund and Request for
10180
1
Schedule J
Farm Income Averaging
25513
2
Abatement
(Form 1040)
Instr. 843
11200
2
Instr. Sch. J
25514
8
Form 940
Employer's Annual Federal
11234
2
Schedule R
Credit for the Elderly or the Disabled
11359
2
Unemployment (FUTA) Tax Return
(Form 1040)
Instr. 940
13660
6
Instr. Sch. R
11357
4
Form 940-EZ
Employer's Annual Federal
10983
2
Schedule SE
Self-Employment Tax
11358
2
Unemployment (FUTA) Tax Return
(Form 1040)
Instr. 940-EZ
25947
4
Instr. Sch. SE
24334
4
Form 941
Employer's Quarterly Federal Tax
17001
3
Form 1040A
U.S. Individual Income Tax Return
11327
2
Return
Instr. 941
14625
4
Schedule 1
Interest and Ordinary Dividends for
12075
1
(Form 1040A)
Form 1040A Filers
Form 941c
Supporting Statement To Correct
11242
4
Information
Schedule 2
Child and Dependent Care Expenses
10749
2
(Form 1040A)
for Form 1040A Filers
Form 990
Return of Organization Exempt From
11282
6
Instr. Sch. 2
30139
3
Income Tax
Schedule 3
Credit for the Elderly or the Disabled
12064
2
Instr. 990 &
General Instructions for Forms 990
22386
14
(Form 1040A)
for Form 1040A Filers
990-EZ
and 990-EZ
Instr. Sch. 3
12059
4
Instr. 990
Specific Instructions for Form 990
50002
16
Form 1040-ES
Estimated Tax for Individuals
11340
7
Form 1040EZ
Income Tax Return for Single and
11329
2
Joint Filers With No Dependents
- 8 -

No.
No.
Name of Form
Cat.
of
Name of Form
Cat.
of
or Instructions
Title of Form or Instructions
No.
Pages
or Instructions
Title of Form or Instructions
No.
Pages
Form 1040NR
U.S. Nonresident Alien Income Tax
11364
5
Form 6198
At-Risk Limitations
50012
1
Return
Instr. 6198
50013
7
Instr. 1040NR
11368
32
Form 6251
Alternative Minimum Tax--
13600
2
Form 1040NR-EZ
U.S. Income Tax Return for Certain
21534
2
Individuals
Nonresident Aliens With No
Instr. 6251
64277
8
Dependents
Form 6252
Installment Sale Income
13601
2
Instr. 1040NR-EZ
21718
12
Instr. 6252
64262
2
Form 1040-V
Payment Voucher
20975
2
Form 6781
Gains and Losses From Section 1256
13715
3
Form 1040X
Amended U.S. Individual Income Tax
11360
2
Contracts and Straddles
Return
Form 8271
Investor Reporting of Tax Shelter
61924
2
Instr. 1040X
11362
6
Registration Number
Form 1116
Foreign Tax Credit
11440
2
Form 8283
Noncash Charitable Contributions
62299
2
Instr. 1116
11441
12
Instr. 8283
62730
4
Form 1310
Statement of Person Claiming Refund
11566
2
Form 8300
Report of Cash Payments Over
62133
4
Due a Deceased Taxpayer
$10,000 Received in a Trade or
Form 2106
Employee Business Expenses
11700
2
Business
Instr. 2106
64188
4
Form 8332
Release of Claim to Exemption for
13910
1
Form 2106-EZ
Unreimbursed Employee Business
20604
2
Child of Divorced or Separated
Expenses
Parents
Form 8379
Injured Spouse Claim and Allocation
62474
2
Form 2120
Multiple Support Declaration
11712
1
Form 8582
Passive Activity Loss Limitations
63704
3
Form 2210
Underpayment of Estimated Tax by
11744
3
Instr. 8582
64294
12
Individuals, Estates, and Trusts
Instr. 2210
63610
6
Form 8586
Low-Income Housing Credit
63987
2
Form 2290
Heavy Highway Vehicle Use Tax
11250
3
Form 8606
Nondeductible IRAs
63966
2
Return
Instr. 8606
25399
8
Instr. 2290
27231
8
Form 8615
Tax for Children Under Age 14 Who
64113
1
Form 2441
Child and Dependent Care Expenses
11862
2
Have Investment Income of More
Instr. 2441
10842
3
Than $1,400
Form 2553
Election by a Small Business
18629
2
Instr. 8615
28914
2
Corporation
Form 8718
User Fee for Exempt Organization
64728
1
Instr. 2553
49978
2
Determination Letter Request
Form 2555
Foreign Earned Income
11900
3
Form 8801
Credit for Prior Year Minimum
10002
4
Instr. 2555
11901
4
Tax--Individuals, Estates, and Trusts
Form 2555-EZ
Foreign Earned Income Exclusion
13272
2
Form 8809
Request for Extension of Time To
10322
2
Instr. 2555-EZ
14623
3
File Information Returns
Form 2688
Application for Additional Extension
11958
2
Form 8812
Additional Child Tax Credit
10644
2
of Time To File U.S. Individual
Form 8814
Parents' Election To Report Child's
10750
2
Income Tax Return
Interest and Dividends
Form 2848
Power of Attorney and Declaration of
11980
2
Form 8815
Exclusion of Interest From Series EE
10822
2
Representative
and I U.S. Savings Bonds Issued
Instr. 2848
11981
4
After 1989
Form 3903
Moving Expenses
12490
2
Form 8822
Change of Address
12081
2
Form 4136
Credit for Federal Tax Paid on Fuels
12625
4
Form 8824
Like-Kind Exchanges
12311
4
Form 4137
Social Security and Medicare Tax on
12626
2
Form 8829
Expenses for Business Use of Your
13232
1
Unreported Tip Income
Home
Form 4506
Request for Copy or Transcript of
41721
2
Instr. 8829
15683
4
Tax Form
Form 8839
Qualified Adoption Expenses
22843
2
Form 4562
Depreciation and Amortization
12906
2
Instr. 8839
23077
4
Instr. 4562
12907
12
Form 8850
Pre-Screening Notice and
22851
2
Certification Request for the Work
Form 4684
Casualties and Thefts
12997
2
Opportunity and Welfare-to-Work
Instr. 4684
12998
4
Credits
Form 4797
Sales of Business Property
13086
2
Instr. 8850
24833
2
Instr. 4797
13087
7
Form 8853
Medical Savings Accounts and
24091
2
Form 4835
Farm Rental Income and Expenses
13117
2
Long-Term Care Insurance Contracts
Instr. 8853
24188
8
Form 4868
Application for Automatic Extension
13141
4
of Time To File U.S. Individual
Form 8857
Request for Innocent Spouse Relief
24647
4
Income Tax Return
Form 8859
District of Columbia First-Time
24779
2
Form 4952
Investment Interest Expense
13177
2
Homebuyer Credit
Deduction
Form 8862
Information To Claim Earned Income
25145
2
Form 4972
Tax on Lump-Sum Distributions
13187
1
Credit After Disallowance
Instr. 4972
13188
3
Instr. 8862
25343
2
Form 5329
Additional Taxes Attributable to
13329
2
Form 8863
Education Credits
25379
3
IRAs, Other Qualified Retirement
Form 9465
Installment Agreement Request
14842
2
Plans, Annuities, Modified
Endowment Contracts, and MSAs
Instr. 5329
13330
4
- 9 -

Partial List
The following publications are available through the IRS Web Site 24 hours a day, 7 days
a
week,
at
www.irs.gov.
You
can
also
order
publications
by
calling
of Publications 1-800-TAX-FORM (1-800-829-3676) or by completing the order blank on page 57. You
should receive your order within 10 days after we receive your request. For a complete
list of available publications, see Pub. 910.
Pub. No.
Title
Pub. No.
Title
1
Your Rights as a Taxpayer
570
Tax Guide for Individuals With Income From U.S.
3
Armed Forces' Tax Guide
Possessions
17
Your Federal Income Tax (For Individuals)
575
Pension and Annuity Income
225
Farmer's Tax Guide
584
Casualty, Disaster, and Theft Loss Workbook
(Personal-Use Property)
334
Tax Guide for Small Business (For Individuals Who
Use Schedule C or C-EZ)
587
Business Use of Your Home (Including Use by
Day-Care Providers)
378
Fuel Tax Credits and Refunds
590
Individual Retirement Arrangements (IRAs) (Including
463
Travel, Entertainment, Gift, and Car Expenses
Roth IRAs and Education IRAs)
501
Exemptions, Standard Deduction, and Filing
593
Tax Highlights for U.S. Citizens and Residents Going
Information
Abroad
502
Medical and Dental Expenses
594
The IRS Collection Process
503
Child and Dependent Care Expenses
595
Tax Highlights for Commercial Fishermen
504
Divorced or Separated Individuals
596
Earned Income Credit (EIC)
505
Tax Withholding and Estimated Tax
721
Tax Guide to U.S. Civil Service Retirement Benefits
508
Tax Benefits for Work-Related Education
901
U.S. Tax Treaties
509
Tax Calendars for 2001
907
Tax Highlights for Persons With Disabilities
514
Foreign Tax Credit for Individuals
908
Bankruptcy Tax Guide
516
U.S. Government Civilian Employees Stationed
910
Guide To Free Tax Services
Abroad
911
Direct Sellers
517
Social Security and Other Information for Members of
the Clergy and Religious Workers
915
Social Security and Equivalent Railroad Retirement
Benefits
519
U.S. Tax Guide for Aliens
919
How Do I Adjust My Tax Withholding?
520
Scholarships and Fellowships
925
Passive Activity and At-Risk Rules
521
Moving Expenses
926
Household Employer's Tax Guide
523
Selling Your Home
929
Tax Rules for Children and Dependents
524
Credit for the Elderly or the Disabled
936
Home Mortgage Interest Deduction
525
Taxable and Nontaxable Income
946
How To Depreciate Property
526
Charitable Contributions
947
Practice Before the IRS and Power of Attorney
527
Residential Rental Property
950
Introduction to Estate and Gift Taxes
529
Miscellaneous Deductions
967
The IRS Will Figure Your Tax
530
Tax Information for First-Time Homeowners
968
Tax Benefits for Adoption
531
Reporting Tip Income
970
Tax Benefits for Higher Education
533
Self-Employment Tax
971
Innocent Spouse Relief
534
Depreciating Property Placed in Service Before 1987
972
Child Tax Credit
535
Business Expenses
1542
Per Diem Rates
537
Installment Sales
1544
Reporting Cash Payments of Over $10,000
541
Partnerships
1546
The Taxpayer Advocate Service of the IRS
544
Sales and Other Dispositions of Assets
547
Casualties, Disasters, and Thefts
(Business and Nonbusiness)
Spanish Language Publications
550
Investment Income and Expenses
1SP
Your Rights as a Taxpayer
551
Basis of Assets
579SP
How To Prepare Your Federal Income Tax Return
552
Recordkeeping for Individuals
594SP
The IRS Collection Process
553
Highlights of 2000 Tax Changes
596SP
Earned Income Credit
554
Older Americans' Tax Guide
850
English-Spanish Glossary of Words and Phrases Used
555
Community Property
in Publications Issued by the Internal Revenue Service
556
Examination of Returns, Appeal Rights, and Claims
1544SP
Reporting Cash Payments of Over $10,000
for Refund
559
Survivors, Executors, and Administrators
561
Determining the Value of Donated Property
564
Mutual Fund Distributions
- 10 -

What Is
Call TeleTax at 1-800-829-4477 for:
Refund information. Check the status of your 2000 refund.
TeleTax?
Recorded tax information. There are about 150 topics that answer many Federal tax
questions.
Be sure to have a copy of your 2000 tax
Recorded Tax Information
How Do You Use Tele-
return available because you will need to
Recorded
tax
information
is
available
Tax?
know the first social security number shown
on your return, the filing status, and the
24 hours a day, 7 days a week. Select the
number of the topic you want to hear. Then,
Refund Information
exact whole-dollar amount of your refund.
Then, call 1-800-829-4477 and follow the
call 1-800-829-4477. Have paper and pencil
handy to take notes.
Refund information is not available until at
recorded instructions.
least 4 weeks after you file your return (3
Topics by Personal
weeks if you file electronically), and some-
The IRS updates refund informa-
times is not available for up to 6 weeks.
tion every 7 days, over the week-
Computer
Please wait at least 4 weeks from the date
end. Refunds are sent out weekly,
TeleTax topics are also available using a
you filed before calling to check the status
on Fridays. If you call to check
personal computer and modem (connect to
of your refund. Do not send in a copy of
the status of your refund and are not given
www.irs.gov).
your return unless asked to do so.
the date it will be issued, please wait until
the next week before calling back.
TeleTax Topics--
Topic
Topic
All
No.
Subject
No.
Subject
topics are available in Spanish
Collection
Filing Requirements, Filing
Status, and Exemptions
Topic
201
The collection process
No.
Subject
202
What to do if you can't pay your
351
Who must file?
tax
352
Which form--1040, 1040A, or
IRS Help Available
203
Failure to pay child support and
1040EZ?
101
IRS services--Volunteer tax
other Federal nontax obligations
353
What is your filing status?
assistance, toll-free telephone,
204
Offers in compromise
354
Dependents
walk-in assistance, and outreach
205
Innocent spouse relief
355
Estimated tax
programs
356
Decedents
102
Tax assistance for individuals with
Alternative Filing Methods*
disabilities and the hearing
252
Electronic filing
Types of Income
impaired
253
Substitute tax forms
401
Wages and salaries
103
Intro. to Federal taxes for small
254
How to choose a paid tax preparer
402
Tips
businesses/self-employed
255
TeleFile
403
Interest received
104
Taxpayer Advocate program--Help
404
Dividends
for problem situations
General Information
405
Refunds of state and local taxes
105
Public libraries--Tax information
301
When, where, and how to file
406
Alimony received
tapes and reproducible tax forms
302
Highlights of tax changes
407
Business income
303
Checklist of common errors when
IRS Procedures
408
Sole proprietorship
preparing your tax return
151
Your appeal rights
409
Capital gains and losses
304
Extensions of time to file your tax
152
Refunds--How long they should
410
Pensions and annuities
return
take
411
Pensions--The general rule and the
305
Recordkeeping
153
What to do if you haven't filed your
simplified method
306
Penalty for underpayment of
tax return (Nonfilers)
412
Lump-sum distributions
estimated tax
154
Form W-2--What to do if not
413
Rollovers from retirement plans
307
Backup withholding
received
414
Rental income and expenses
308
Amended returns
155
Forms and Publications--How to
415
Renting vacation property and
309
Roth IRA contributions
order
renting to relatives
310
Education IRA contributions
156
Copy of your tax return--How to
416
Farming and fishing income
311
Power of attorney information
get one
417
Earnings for clergy
157
Change of address--How to notify
418
Unemployment compensation
IRS
419
Gambling income and expenses
158
Ensuring proper credit of
420
Bartering income
payments
(Continued on page 12)
* The IRS no longer accepts the Form 1040PC format. If you used Form 1040PC in the past, the IRS encourages you to file using the fastest, most accurate way to file--IRS e-file.
- 11 -

TeleTax Topics
Topic
Topic
No.
Subject
No.
Subject
(Continued)
Tax Credits
Magnetic Media Filers--
Topic
601
Earned income credit (EIC)
1099 Series and Related
No.
Subject
602
Child and dependent care credit
Information Returns
421
Scholarship and fellowship grants
603
Credit for the elderly or the
801
Who must file magnetically
422
Nontaxable income
disabled
802
Applications, forms, and
423
Social security and equivalent
604
Advance earned income credit
information
railroad retirement benefits
605
Education credits
803
Waivers and extensions
424
401(k) plans
606
Child tax credits
804
Test files and combined Federal and
425
Passive activities--Losses and
607
Adoption credit
state filing
credits
608
Excess social security and RRTA
805
Electronic filing of information
426
Other income
tax withheld
returns
427
Stock options
Tax Information for Aliens
428
Roth IRA distributions
IRS Notices
and U.S. Citizens Living
651
Notices--What to do
Adjustments to Income
Abroad
652
Notice of underreported income--
451
Individual retirement
CP 2000
851
Resident and nonresident aliens
arrangements (IRAs)
653
IRS notices and bills, penalties, and
852
Dual-status alien
452
Alimony paid
interest charges
853
Foreign earned income
453
Bad debt deduction
exclusion--General
Basis of Assets,
454
Tax shelters
854
Foreign earned income
Depreciation, and Sale
exclusion--Who qualifies?
455
Moving expenses
of Assets
855
Foreign earned income
456
Student loan interest deduction
701
Sale of your home
exclusion--What qualifies?
Itemized Deductions
703
Basis of assets
856
Foreign tax credit
501
Should I itemize?
704
Depreciation
857
Individual Taxpayer Identification
502
Medical and dental expenses
705
Installment sales
Number--Form W-7
503
Deductible taxes
858
Alien tax clearance
Employer Tax Information
504
Home mortgage points
751
Social security and Medicare
Tax Information for Puerto
505
Interest expense
withholding rates
Rico Residents (in Spanish
506
Contributions
752
Form W-2--Where, when, and how
only)
507
Casualty and theft losses
to file
901
Who must file a U.S. income tax
508
Miscellaneous expenses
753
Form W-4--Employee's Withhold-
return in Puerto Rico
509
Business use of home
ing Allowance Certificate
902
Deductions and credits for Puerto
510
Business use of car
754
Form W-5--Advance earned income
Rico filers
511
Business travel expenses
credit
903
Federal employment taxes in Puerto
512
Business entertainment
755
Employer identification number
Rico
expenses
(EIN)--How to apply
904
Tax assistance for Puerto Rico
513
Educational expenses
756
Employment taxes for household
residents
514
Employee business expenses
employees
515
Disaster area losses
757
Form 941--Deposit requirements
758
Form 941--Employer's Quarterly
Tax Computation
Topic numbers are effective
Federal Tax Return
551
Standard deduction
January 1, 2001.
759
Form 940 and 940-EZ--Deposit
552
Tax and credits figured by the IRS
requirements
553
Tax on a child's investment income
760
Form
940
and
Form
940-EZ--
554
Self-employment tax
Employer's Annual Federal Unem-
555
Ten-year tax option for lump-sum
ployment Tax Returns
distributions
761
Tips--Withholding and reporting
556
Alternative minimum tax
762
Independent contractor vs.
557
Tax on early distributions from
employee
traditional and Roth IRAs
558
Tax on early distributions from
retirement plans
- 12 -

Calling the IRS If you cannot answer your question by using one of the methods listed on page 7, please
call us for assistance at 1-800-829-1040. You will not be charged for the call unless your
phone company charges you for local calls. General tax question assistance is available 24
hours a day, 7 days a week, from January 2, 2001, through April 17, 2001. Beginning
April 18, 2001, this assistance is available Monday through Saturday from 7:00 a.m. until
11:00 p.m. local time. Assistance for questions about a specific notice, letter, bill, or refund
is available year-round 24 hours a day, 7 days a week.
If you want to check the status of your 2000 refund, call TeleTax at
1-800-829-4477 (see page 11 for instructions).
The numbers in your street address.
Find out the status of your refund or
Before You Call
Your ZIP code.
what you owe.
If you are asking for an installment agree-
Determine if we have adjusted your ac-
IRS representatives care about the quality of
ment to pay your tax, you will be asked for
count or received payments you made.
the service we provide to you, our customer.
the highest amount you can pay each month
Request a transcript of your account.
You can help us provide accurate, complete
and the date on which you can pay it.
Find out where to send your tax return
answers to your questions by having the
or payment.
following information available.
Evaluation of Services Provided. The IRS

Request more time to pay or set up a
The tax form, schedule, or notice to
uses several methods to evaluate the quality
monthly installment agreement.
which your question relates.
of this telephone service. One method is for
The facts about your particular situa- a second IRS representative to sometimes
tion. The answer to the same question often
listen in on or record telephone calls. An-
varies from one taxpayer to another because
other is to ask some callers to complete a
Before You Hang Up
of differences in their age, income, whether
short survey at the end of the call.
they can be claimed as a dependent, etc.
If you do not fully understand the answer

you receive, or you feel our representative
The name of any IRS publication or
may not fully understand your question, our
other source of information that you used to
Making the Call
representative needs to know this. He or she
look for the answer.
will be happy to take additional time to be
To maintain your account security, you
Call 1-800-829-1040 (for TTY/TDD help,
sure your question is answered fully.
may be asked for the following information,
call 1-800-829-4059). If you have a pulse or
By law, you are responsible for paying
which you should also have available.
rotary dial phone, stay on the line and one
your share of Federal income tax. If we

of our representatives will answer.
Your social security number.
should make an error in answering your

If you have a touch-tone phone, you may
The amount of refund and filing status
question, you are still responsible for the
not need to speak to a representative to get
shown on your tax return.
payment of the correct tax. Should this
your answer. The system will direct you to
The "Caller ID Number" shown at the
occur, however, you will not be charged any
the appropriate assistance. You can press the
top of any notice you received.
penalty.
number for your topic as soon as you hear
Your personal identification num- it. You can do the following within the
ber (PIN) if you have one.
system.
Your date of birth.
Order tax forms and publications.
- 13 -

Before You Fill
See How To Avoid Common Mistakes on page 53.
If you were in the Balkans or the Persian Gulf area (for example, you participated in
In Form 1040
Operation Joint Forge or Operation Allied Force), see Pub. 3.
Business Standard Mileage
Did You Convert an
Rate
What To Look for in
IRA to a Roth IRA in The rate for business use of a vehicle during 2001
2000 is 321/2 cents a mile.
1998?
Earned Income Credit (EIC)
Student Loan Interest
If you did and you chose to report the tax-
Deduction
able amount over 4 years, see 1998 Roth
You may be able to take this credit if you
You may be able to deduct up to $2,500 of
IRA Conversions on page 23 to find out
earned less than $31,152 (less than $10,380
the interest you pay on a qualified student
the taxable amount you must report in 2000
if you do not have any qualifying children).
loan.
on line 15b.
See the instructions for lines 60a and 60b
that begin on page 40.
IRA Deduction Allowed to
Foster Child--New Definition
More People Covered by
For details on the changes for
for the Child Tax Credit and
Retirement Plans
2000 and 2001, see Pub. 553 or
the EIC
You may be able to take an IRA deduction
see What's Hot at www.irs.gov.
New rules apply to determine who is a foster
if you are covered by a retirement plan and
child for purposes of the child tax credit and
your 2001 modified adjusted gross income
the EIC. For details, see Qualifying Child
is less than the amount shown below that
What's New for
for Child Tax Credit on page 20 or Foster
applies to you.
Child on page 43.
Single, head of household, or married
2000?
filing separately and you lived apart from
Paid Preparer Authorization
your spouse for all of 2001--$43,000.
Married filing jointly or qualifying
Student Loan Interest
If you want to allow the IRS to discuss your
widow(er)--$63,000.
Deduction
2000 tax return with the paid preparer who
signed it, check the "Yes" box in the area
If you paid interest on a qualified student
where you sign your return. See page 52 for
loan, you may be able to deduct up to $2,000
details.
Photographs of
of the interest on line 24. See the instructions
for line 24 that begin on page 27.
Mailing Your Return
Missing Children
IRA Deduction Allowed to
You may be mailing your return to a differ-
The IRS is a proud partner with the National
ent service center this year because the IRS
More People Covered by
Center for Missing and Exploited Children.
has changed the filing location for several
Photographs of missing children selected by
Retirement Plans
areas. If you received an envelope with your
the Center may appear in this booklet on
You may be able to take an IRA deduction
tax package, please use it. Otherwise, see
pages that would otherwise be blank. You
if you were covered by a retirement plan and
Where Do You File? on the back cover.
can help bring these children home by look-
your modified adjusted gross income is less
ing
at
the
photographs
and
calling
than the amount shown below that applies
1-800-THE-LOST (1-800-843-5678) if you
to you.
recognize a child.
Single, head of household, or married
filing separately and you lived apart from
your spouse for all of 2000--$42,000.
Married filing jointly or qualifying
widow(er)--$62,000.
See the instructions for line 23 on
page 27.
- 14 -

Filing
These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.
Requirements
end of 2000 and who have elected to be
An automatic 4-month extension
Do You Have To
taxed as resident aliens. Other nonresident
to file does not extend the time
aliens and dual-status aliens have different
to pay your tax. See Form 4868.
File?
filing requirements. They may have to file
Form 1040NR or Form 1040NR-EZ. Spe-
Use Chart A, B, or C to see if you must
If you are a U.S. citizen or resident, you
cific rules apply to determine if you are a
file a return. U.S. citizens who lived in or
may qualify for an automatic extension of
resident or nonresident alien. See Pub. 519
had income from a U.S. possession should
time to file without filing Form 4868 or
for details, including the rules for students
see Pub. 570. Residents of Puerto Rico can
filing for an extension by phone, using tax
and scholars who are aliens.
use TeleTax topic 901 (see page 11) to see
software, or through a tax professional. You
if they must file.
qualify if, on the due date of your return,
you meet one of the following conditions.
Even if you do not otherwise
When Should You
You live outside the United States and
have to file a return, you should
File?
Puerto Rico and your main place of business
file one to get a refund of any
or post of duty is outside the United States
Federal income tax withheld.
and Puerto Rico.
Not later than April 16, 2001. If you file
You should also file if you are eligible for
after this date, you may have to pay interest
You are in military or naval service on
the earned income credit or the additional
and penalties. See page 55.
duty outside the United States and Puerto
child tax credit.
Rico.
What if You Cannot File on
This extension gives you an extra 2
Exception for Children Under Age 14. If
Time?
months to file and pay the tax, but interest
you are planning to file a return for your
will be charged from the original due date
child who was under age 14 on January 1,
You can get an automatic 4-month extension
of the return on any unpaid tax. You must
2001, and certain other conditions apply,
if, by April 16, 2001, you either:
attach a statement to your return showing
you may elect to report your child's income
File Form 4868 or
that you meet the requirements.
on your return. But you must use Form 8814
File for an extension by phone, using
to do so. If you make this election, your
tax software, or through a tax professional.
child does not have to file a return. For
If you expect to owe tax with your return,
details, use TeleTax topic 553 (see page 11)
Where Do You File?
you can even pay part or all of it by direct
or see Form 8814.
debit or credit card (American Express
See the back cover of this booklet for filing
Nonresident
Aliens
and
Dual-Status
Card, Discover Card, or MasterCard
instructions and addresses. For details on
Aliens. These rules also apply to nonresi-
card). See Form 4868 for details.
using a private delivery service to mail your
dent aliens and dual-status aliens who were
return or payment, see page 18.
married to U.S. citizens or residents at the
Chart A--For Most People
AND at the end of 2000
THEN file a return if your gross
IF your filing status is . . .
you were* . . .
income** was at least . . .
under 65
$7,200
Single
65 or older
8,300
under 65 (both spouses)
$12,950
Married filing jointly***
65 or older (one spouse)
13,800
65 or older (both spouses)
14,650
Married filing separately
any age
$2,800
under 65
$9,250
Head of household (see page 19)
65 or older
10,350
Qualifying widow(er) with dependent child
under 65
$10,150
(see page 19)
65 or older
11,000
* If you turned 65 on January 1, 2001, you are considered to be age 65 at the end of 2000.
** 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 may 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 2000.
*** If you did not live with your spouse at the end of 2000 (or on the date your spouse died) and your gross income was at least
$2,800, you must file a return regardless of your age.
- 15 -

Chart B--For Children and Other Dependents (See the instructions for line 6c on page 20 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.
If your gross income was $2,800 or more, you usually cannot be claimed as a dependent unless you were under age 19
or a student under age 24. For details, see Pub. 501.
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 $700.
Your earned income was over $4,400.
Your gross income was more than the larger of--
$700 or
Your earned income (up to $4,150) plus $250.
Yes. You must file a return if any of the following apply.
Your unearned income was over $1,800 ($2,900 if 65 or older and blind).
Your earned income was over $5,500 ($6,600 if 65 or older and blind).
Your gross income was more than--
The larger of:
Plus
This amount:
$700 or
$1,100 ($2,200 if 65
or older and blind)
Your earned income (up to $4,150) plus $250
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 $700.
Your earned income was over $3,675.
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--
$700 or
Your earned income (up to $3,425) plus $250.
Yes. You must file a return if any of the following apply.
Your unearned income was over $1,550 ($2,400 if 65 or older and blind).
Your earned income was over $4,525 ($5,375 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:
$700 or
$850 ($1,700 if 65
or older and blind)
Your earned income (up to $3,425) plus $250
Chart C--Other Situations When You Must File
You must file a return if any of the four conditions below apply for 2000.
1. You owe any special taxes, such as:
Social security and Medicare tax on tips you did not report to your employer,
Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance,
Alternative minimum tax,
Recapture taxes (see the instructions for line 40 that begin on page 32 and line 57 that begin on page 38), or
Tax on an individual retirement arrangement (IRA), other retirement plan, or on a medical savings account (MSA). But if you
are filing a return only because you owe this tax, you can file Form 5329 by itself.
2. You received any advance earned income credit (EIC) payments from your employer. These payments are shown in box 9 of your
W-2 form.
3. You had net earnings from self-employment of at least $400.
4. You earned wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer
social security and Medicare taxes.
- 16 -

Where To Report Certain Items From 2000 Forms W-2, 1098,
and 1099
Report on Form 1040, line 58, any amounts shown on these forms as Federal income tax withheld. If you itemize your deductions,
report on Schedule A, line 5, any amounts shown on these forms as state or local income tax withheld.
Form
Item and Box in Which it Should Appear
Where To Report if Filing Form 1040
W-2
Wages, salaries, tips, etc. (box 1)
Form 1040, line 7
Allocated tips (box 8)
See Tip income on page 21
Advance EIC payments (box 9)
Form 1040, line 55
Dependent care benefits (box 10)
Form 2441, line 10
Adoption benefits (box 13, code T)
Form 8839, line 18
Employer contributions to an MSA (box 13,
Form 8853, line 1b
code R)
W-2G
Gambling winnings (box 1)
Form 1040, line 21 (Schedule C or C-EZ for professional gamblers)
1098
Mortgage interest (box 1)
Schedule A, line 10*
Points (box 2)
Refund of overpaid interest (box 3)
Form 1040, line 21, but first see the instructions on Form 1098*
1098-E
Student loan interest (box 1)
See the instructions for Form 1040, line 24, that begin on page 27*
1099-A
Acquisition or abandonment of secured
See Pub. 544
property
1099-B
Stocks, bonds, etc. (box 2)
Schedule D
Bartering (box 3)
See Pub. 525
Aggregate profit or (loss) on futures
Form 6781
contracts (box 9)
1099-C
Canceled debt (box 2)
Form 1040, line 21, but first see the instructions on Form 1099-C*
1099-DIV
Ordinary dividends (box 1)
Form 1040, line 9
Total capital gain distributions (box 2a)
Form 1040, line 13, or, if required, Schedule D, line 13, column (f)
28% rate gain (box 2b)
Schedule D, line 13, column (g)
Unrecaptured section 1250 gain (box 2c)
See the worksheet for Schedule D, line 25, on page D-8
Section 1202 gain (box 2d)
See the instructions for Schedule D
Nontaxable distributions (box 3)
See the instructions for Form 1040, line 9, that begin on page 21
Investment expenses (box 5)
Schedule A, line 22
Foreign tax paid (box 6)
Form 1040, line 43, or Schedule A, line 8
1099-G
Unemployment compensation (box 1)
Form 1040, line 19. But if you repaid any unemployment
compensation in 2000, see the instructions for line 19 on page 25
State or local income tax refund (box 2)
See the instructions for Form 1040, line 10, on page 22*
Qualified state tuition program earnings
Form 1040, line 21
(box 5)
Taxable grants (box 6)
Form 1040, line 21*
Agriculture payments (box 7)
See the Schedule F instructions 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.
(Continued on page 18)
- 17 -

Form
Item and Box in Which it Should Appear
Where To Report if Filing Form 1040
1099-INT
Interest income (box 1)
Form 1040, line 8a
Early withdrawal penalty (box 2)
Form 1040, line 30
Interest on U.S. savings bonds and Treasury
See the instructions for Form 1040, line 8a, on page 21
obligations (box 3)
Investment expenses (box 5)
Schedule A, line 22
Foreign tax paid (box 6)
Form 1040, line 43, or Schedule A, line 8
1099-LTC
Long-term care and accelerated death
See Pub. 502 and the instructions for Form 8853
benefits
1099-MISC Rents (box 1)
See the instructions for Schedule E
Royalties (box 2)
Schedule E, line 4 (timber, coal, 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.
Other (boxes 5, 6, 8, 9, and 10)
See the instructions on Form 1099-MISC
1099-MSA
Distributions from medical savings accounts
Form 8853
1099-OID
Original issue discount (box 1)
See the instructions on Form 1099-OID
Other periodic interest (box 2)
Early withdrawal penalty (box 3)
Form 1040, line 30
1099-PATR
Patronage dividends and other distributions
Schedule C, C-EZ, or F or Form 4835, but first see the instructions
from a cooperative (boxes 1, 2, 3, and 5)
on Form 1099-PATR
Credits (boxes 7 and 8)
Form 3468 or Form 5884
Patron's AMT adjustment (box 9)
Form 6251, line 14j
1099-R
Distributions from IRAs**
See the instructions for Form 1040, lines 15a and 15b, on page 23
Distributions from pensions, annuities, etc.
See the instructions for Form 1040, lines 16a and 16b, that begin on
page 23
Capital gain (box 3)
See the instructions on Form 1099-R
1099-S
Gross proceeds from real estate transactions
Form 4797, Form 6252, or Schedule D. But if the property was your
(box 2)
home, see the instructions for Schedule D to find out if you must
report the sale or exchange.
Buyer's part of real estate tax (box 5)
See the instructions for Schedule A, line 6, on page A-2*
* 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, SIMPLE, and education IRAs.
Private Delivery Services
DHL Worldwide Express (DHL): DHL
Private delivery services cannot
"Same Day" Service, and DHL USA Over-
deliver items to P.O. boxes. You
You can use certain private delivery services
night.
must use the U.S. Postal Service
designated by the IRS to meet the "timely
Federal Express (FedEx): FedEx Prior-
to mail any item to an IRS P.O.
mailing as timely filing/paying" rule for tax
ity Overnight, FedEx Standard Overnight,
box address.
returns and payments. The most recent list
and FedEx 2Day.
of designated private delivery services was
published by the IRS in August 1999. The
United Parcel Service (UPS): UPS
list includes only the following:
Next Day Air, UPS Next Day Air Saver,

UPS 2nd Day Air, and UPS 2nd Day Air
Airborne Express (Airborne): Over-
A.M.
night Air Express Service, Next Afternoon
Service, and Second Day Service.
The private delivery service can tell you
how to get written proof of the mailing date.
- 18 -

Line
Instructions for
Form 1040
code. Please do not abbreviate the country
the fund. If you check "Yes," your tax or
Name and Address
name.
refund will not change.
Death of a Taxpayer
Use the Peel-Off Label
See page 54.
Filing Status
Using your peel-off name and address label
in this booklet will speed the processing of
Check only the filing status that applies to
your return. It also prevents common errors
you. The ones that will usually give you the
that can delay refunds or result in unneces-
Social Security
lowest tax are listed last.
sary notices. Put the label on your return
Married filing separately.
after you have finished it. Cross out any
Number (SSN)
errors and print the correct information. Add
Single.
An incorrect or missing SSN may increase
any missing items, such as your apartment
Head of household. This status is for
your tax or reduce your refund. To apply
number.
unmarried people who paid over half the
for an SSN, get Form SS-5 from your local
cost of keeping up a home for a qualifying
Address Change
Social Security Administration (SSA) office
person, such as a child or parent. Certain
or call the SSA at 1-800-772-1213. Fill in
married people who lived apart from their
If the address on your peel-off label is not
Form SS-5 and return it to the SSA. It usu-
spouse for the last 6 months of 2000 may
your current address, cross out your old ad-
ally takes about 2 weeks to get an SSN.
also be able to use this status.
dress and print your new address. If you plan
Check that your SSN is correct on your
to move after filing your return, see page
Married filing jointly or Qualifying
Forms W-2 and 1099. See page 53 for more
53.
widow(er)
with
dependent
child.
The
details.
Qualifying widow(er) status is for certain
Name Change
people whose spouse died in 1998 or 1999
IRS Individual Taxpayer Identifica-
and who had a child living with them whom
If you changed your name, be sure to report
tion Numbers (ITINs) for Aliens
they can claim as a dependent.
the change to your local Social Security Ad-
The IRS will issue you an ITIN if you are
ministration office before filing your return.
a nonresident or resident alien and you do
Joint and Several Tax Liability. If you file
This prevents delays in processing your
not have and are not eligible to get an SSN.
a joint return, both you and your spouse are
return and issuing refunds. It also safeguards
To apply for an ITIN, file Form W-7 with
generally responsible for the tax and any
your future social security benefits. If you
the IRS. It usually takes about 30 days to
interest or penalties due on the return. This
received a peel-off label, cross out your
get an ITIN. Enter your ITIN wherever
means that if one spouse does not pay the
former name and print your new name.
your SSN is requested on your tax return.
tax due, the other may have to. However,
see Innocent Spouse Relief on page 53.
What If You Do Not Have a Label?
Note. An ITIN is for tax use only. It does
Print or type the information in the spaces
not entitle you to social security benefits or
More than one filing status may
provided. If you are married filing a separate
change your employment or immigration
apply to you. Choose the one that
return, enter your husband's or wife's name
status under U.S. law.
will give you the lowest tax. If
on line 3 instead of below your name.
you are not sure about your filing
Nonresident Alien Spouse
status, use TeleTax topic 353 (see page 11)
If you filed a joint return for 1999
or see Pub. 501.
If your spouse is a nonresident alien and you
and you are filing a joint return
file a joint or separate return, your spouse
for 2000 with the same spouse,
must have either an SSN or an ITIN.
be sure to enter your names and
Exemptions
SSNs in the same order as on your 1999
return.
Presidential Election You usually can deduct $2,800 on line 38
for each exemption you can take.
P.O. Box
Campaign Fund
Enter your box number instead of your street
address only if your post office does not
This fund helps pay for Presidential election
Line 6b
deliver mail to your home.
campaigns. The fund reduces candidates'
dependence on large contributions from in-
Spouse
Foreign Address
dividuals and groups and places candidates
on an equal financial footing in the general
Check the box on line 6b if you file either
Enter the information in the following order:
election. If you want $3 to go to this fund,
(1) a joint return or (2) a separate return and
city, province or state, and country. Follow
check the "Yes" box. If you are filing a joint
your spouse had no income and is not filing
the country's practice for entering the postal
return, your spouse may also have $3 go to
a return. However, do not check the box if
- 19 -
Need more information or forms? See page 7.

Form 1040--Lines 6b and 6c
your spouse can be claimed as a dependent
the name or SSN on the dependent's social
Beginning in 2000, a foster child is any
on another person's return.
security card is not correct, call the Social
child you cared for as your own child and
Security Administration at 1-800-772-1213.
who:
Is (1) your brother, sister, stepbrother,
Line 6c
or stepsister; (2) a descendant (such as a
child, including an adopted child) of your
For details on how your depen-
Dependents
brother, sister, stepbrother, or stepsister; or
dent can get an SSN, see page
(3) a child placed with you by an authorized
You can take an exemption for each of your
19. If your dependent will not
placement agency, and
dependents. The following is a brief descrip-
have a number by April 16, 2001,
Lived with you for all of 2000. A child
tion of the five tests that must be met for a
see What if You Cannot File on Time? on
who was born or died in 2000 is considered
person to qualify as your dependent. If you
page 15.
to have lived with you for all of 2000 if your
have more than six dependents, attach a
home was the child's home for the entire
statement to your return with the required
If your dependent child was born and died
time he or she was alive during 2000.
information.
in 2000 and you do not have an SSN for the
child, you may attach a copy of the child's
Children Who Did Not Live With
Relationship Test. The person must be
birth certificate instead and enter "Died" in
You Due to Divorce or Separation
either your relative or have lived in your
column (2).
home as a family member all year. If the
If you are claiming a child who did not live
person is not your relative, the relationship
Adoption Taxpayer Identification Num-
with you under the rules in Pub. 501 for
must not violate local law.
bers (ATINs). If you have a dependent who
children of divorced or separated parents,
was placed with you by an authorized place-
attach Form 8332 or similar statement to
Joint Return Test. If the person is married,
ment agency and you do not know his or
your return. But see Exception below. If
he or she cannot file a joint return. But the
her SSN, you must get an ATIN for the
your divorce decree or separation agreement
person can file a joint return if the return is
dependent from the IRS. An authorized
went into effect after 1984 and it states you
filed only as a claim for refund and no tax
placement agency includes any person au-
can claim the child as your dependent with-
liability would exist for either spouse if they
thorized by state law to place children for
out regard to any condition, such as payment
had filed separate returns.
legal adoption. See Form W-7A for details.
of support, you may attach a copy of the
following pages from the decree or agree-
Citizen or Resident Test. The person must
Line 6c, Column (4)
ment instead.
be a U.S. citizen or resident alien, or a res-
Check the box in this column if your depen-
1. Cover page (put the other parent's SSN
ident of Canada or Mexico. There is an ex-
dent is a qualifying child for the child tax
on that page),
ception for certain adopted children. To find
credit (defined below). If you have at least
out who is a resident alien, use TeleTax
2. The page that states you can claim the
one qualifying child, you may be able to
topic 851 (see page 11) or see Pub. 519.
child as your dependent, and
take the child tax credit on line 47.
3. Signature page with the other parent's
Income Test. The person's gross income
signature and date of agreement.
Qualifying Child for Child Tax Credit. A
must be less than $2,800. But your child's
qualifying child for purposes of the child tax
gross income can be $2,800 or more if he
credit is a child who:
or she was either under age 19 at the end
Note. You must attach the required infor-
of 2000 or under age 24 at the end of 2000
Is claimed as your dependent on line mation even if you filed it in an earlier year.
and was a student.
6c, and
Was under age 17 at the end of 2000, Exception. You do not have to attach Form
Support Test. You must have provided over
and
8332 or similar statement if your divorce
half of the person's total support in 2000.
Is your son, daughter, adopted child, decree or written separation agreement went
But there are two exceptions to this test: one
grandchild, stepchild, or foster child, and
into effect before 1985 and it states that you
for children of divorced or separated parents
Is a U.S. citizen or resident alien.
can claim the child as your dependent.
and one for persons supported by two or
more taxpayers.
Other Dependent Children
Note. The above requirements are not the
Include the total number of children who did
For more details about the tests,
same as the requirements to be a qualifying
not live with you for reasons other than
including any exceptions that
child for the earned income credit.
divorce or separation on the line labeled
apply, see Pub. 501.
A child placed with you by an authorized
"Dependents on 6c not entered above." In-
placement agency for legal adoption is an
clude dependent children who lived in
Line 6c, Column (2)
adopted child even if the adoption is not
Canada or Mexico during 2000.
You must enter each dependent's social se-
final. An authorized placement agency in-
curity number (SSN). Be sure the name and
cludes any person authorized by state law
SSN entered agree with the dependent's
to place children for legal adoption.
Income
social security card. Otherwise, at the time
A grandchild is any descendant of your
we process your return, we may disallow the
son, daughter, or adopted child and includes
Foreign-Source Income
exemption claimed for the dependent and
your
great-grandchild,
great-great-
You must report unearned income, such as
reduce or disallow any other tax benefits
grandchild, etc.
interest, dividends, and pensions, from
(such as the child tax credit and the earned
sources outside the United States unless
income credit) based on that dependent. If
exempt by law or a tax treaty. You must
Need more information or forms? See page 7.
- 20 -

Form 1040--Lines 7 Through 9
also report earned income, such as wages
see if you may exclude part or all of the
Missing or Incorrect Form W-2?
and tips, from sources outside the United
benefits.
If you do not get a W-2 form from your
States.
Employer-provided adoption bene- employer by January 31, 2001, use TeleTax
If you worked abroad, you may be able
fits, which should be shown in box 13 of
topic 154 (see page 11) to find out what to
to exclude part or all of your earned income.
your W-2 form(s) with code T. But first
do. Even if you do not get a Form W-2, you
For details, see Pub. 54 and Form 2555 or
complete Form 8839 to see if you may ex-
must still report your earnings on line 7. If
2555-EZ.
clude part or all of the benefits.
you lose your Form W-2 or it is incorrect,
Scholarship and fellowship grants ask your employer for a new one.
Community Property States
not reported on a W-2 form. Also, enter
Community property states are Arizona, Ca-
"SCH" and the amount on the dotted line
lifornia,
Idaho,
Louisiana,
Nevada,
next to line 7. Exception. If you were a
Line 8a
New Mexico, Texas, Washington, and Wis-
degree candidate, include on line 7 only the
consin. If you and your spouse lived in a
amounts you used for expenses other than
Taxable Interest
community property state, you must usually
tuition and course-related expenses. For ex-
follow state law to determine what is com-
ample, amounts used for room, board, and
Each payer should send you a Form
munity income and what is separate income.
travel must be reported on line 7.
1099-INT or Form 1099-OID. Enter your
For details, see Pub. 555.
Excess salary deferrals. The amount total taxable interest income on line 8a. But
deferred should be shown in box 13 of your
you must fill in and attach Schedule B if
Rounding Off to Whole Dollars
W-2 form and the "Deferred compensation"
the total is over $400 or any of the other
conditions listed at the beginning of the
To round off cents to the nearest whole
box in box 15 should be checked. If the total
Schedule B instructions (see page B-1)
dollar on your forms and schedules, drop
amount you (or your spouse if filing jointly)
apply to you.
amounts under 50 cents and increase
deferred for 2000 under all plans was more
amounts from 50 to 99 cents to the next
than $10,500, include the excess on line 7.
Interest credited in 2000 on deposits that
dollar. If you do round off, do so for all
But a different limit may apply if amounts
you could not withdraw because of the bank-
amounts. But if you have to add two or more
were deferred under a tax-sheltered annuity
ruptcy or insolvency of the financial insti-
amounts to figure the amount to enter on a
plan or an eligible plan of a state or local
tution may not have to be included in your
line, include cents when adding and only
government or tax-exempt organization. See
2000 income. For details, see Pub. 550.
round off the total.
Pub. 525 for details.
If you get a 2000 Form 1099-INT
for U.S. savings bond interest
You may not deduct the amount
that includes amounts you report-
Line 7
deferred. It is not included as
ed before 2000, see Pub. 550.
income in box 1 of your W-2
Wages, Salaries, Tips, etc.
form.
Enter the total of your wages, salaries, tips,
Line 8b

etc. If a joint return, also include your
Disability pensions shown on Form
spouse's income. For most people, the
1099-R if you have not reached the mini-
Tax-Exempt Interest
amount to enter on this line should be shown
mum retirement age set by your employer.
in box 1 of their Form(s) W-2. But the
Disability pensions received after you reach
If you received any tax-exempt interest, such
following types of income must also be in-
that age and other pensions shown on Form
as from municipal bonds, report it on line
cluded in the total on line 7.
1099-R (other than payments from an IRA*)
8b. Include any exempt-interest dividends

are reported on lines 16a and 16b. Payments
from a mutual fund or other regulated in-
Wages received as a household em-
from an IRA are reported on lines 15a and
vestment company. Do not include interest
ployee for which you did not receive a W-2
15b.
earned on your IRA.
form because your employer paid you less

than $1,200 in 2000. Also, enter "HSH" and
Corrective distributions shown on
the amount not reported on a W-2 form on
Form 1099-R of (1) excess salary deferrals
the dotted line next to line 7.
plus earnings and (2) excess contributions
Line 9

plus earnings to a retirement plan. But do
Tip income you did not report to your
not include distributions from an IRA* on
Ordinary Dividends
employer. Also include allocated tips
line 7. Instead, report them on lines 15a and
shown on your W-2 form(s) unless you can
15b.
Each payer should send you a Form
prove that you received less. Allocated tips
*This includes a Roth, SEP, SIMPLE, or education IRA.
1099-DIV. Enter your total ordinary divi-
should be shown in box 8 of your W-2
dends on line 9. But you must fill in and
form(s). They are not included as income in
Were You a Statutory Employee?
attach Schedule B if the total is over $400
box 1. See Pub. 531 for more details.
or you received, as a nominee, ordinary div-
If you were, the "Statutory employee" box
idends that actually belong to someone else.
in box 15 of your W-2 form should be
You may owe social security and
checked. Statutory employees include full-
Capital Gain Distributions
Medicare tax on unreported or al-
time life insurance salespeople, certain agent
located tips. See the instructions
or commission drivers and traveling sales-
If you received any capital gain distribu-
for line 53 on page 38.
people, and certain homeworkers. If you
tions, see the instructions for line 13 on
have related business expenses to deduct,
page 23.
Dependent care benefits, which report the amount shown in box 1 of your
(Continued on page 22)
should be shown in box 10 of your W-2
W-2 form on Schedule C or C-EZ along
form(s). But first complete Form 2441 to
with your expenses.
- 21 -
Need more information or forms? See page 7.

Form 1040--Lines 9 Through 11
Nontaxable Distributions
apply part or all of the refund to your 2000
Also, see Tax Benefit Rule in Pub. 525
estimated state or local income tax, the
instead of using the worksheet below if all
Some distributions are nontaxable because
amount applied is treated as received in
three of the following apply.
they are a return of your cost. They will not
2000. If the refund was for a tax you paid
be taxed until you recover your cost. You
1. You had to use the Itemized Deductions
in 1999 and you itemized deductions for
must reduce your cost (or other basis) by
Worksheet in the 1999 Schedule A instruc-
1999, use the worksheet below to see if any
these distributions. After you get back all of
tions because your 1999 adjusted gross
of your refund is taxable.
your cost (or other basis), you must report
income was over: $126,600 if single, mar-
these distributions as capital gains on
ried filing jointly, head of household, or
Exceptions. See Recoveries in Pub. 525
Schedule D. For details, see Pub. 550.
qualifying widow(er); $63,300 if married
instead of using the worksheet below if any
filing separately.
of the following apply.
Dividends on insurance policies
2. You could not deduct all of the amount

are a partial return of the premi-
You received a refund in 2000 that is
on line 1 of the 1999 Itemized Deductions
ums you paid. Do not report
for a tax year other than 1999.
Worksheet.
them as dividends. Include them
You received a refund other than an
3. The amount on line 8 of that 1999
in income only if they exceed the total of
income tax refund, such as a real property
worksheet would be more than the amount
all net premiums you paid for the contract.
tax refund, in 2000 of an amount deducted
on line 4 of that worksheet if the amount on
or credit claimed in an earlier year.
line 4 were reduced by 80% of the refund
Your 1999 taxable income was less you received in 2000.
Line 10
than zero.
You made your last payment of 1999
Taxable Refunds, Credits, or
estimated state or local income tax in 2000.
Line 11
Offsets of State and Local
You owed alternative minimum tax in
Income Taxes
1999.
Alimony Received
You could not deduct the full amount Enter amounts received as alimony or sep-
of credits you were entitled to in 1999 be-
None of your refund is taxable if,
arate maintenance. You must let the person
cause the total credits exceeded the tax
in the year you paid the tax, you
who made the payments know your social
shown on your 1999 Form 1040, line 40.
did not itemize deductions.
security number. If you do not, you may
You could be claimed as a dependent have to pay a $50 penalty. For more details,
by someone else in 1999.
use TeleTax topic 406 (see page 11) or see
If you received a refund, credit, or offset of
Pub. 504.
state or local income taxes in 2000, you may
receive a Form 1099-G. If you chose to
State and Local Income Tax Refund Worksheet--Line 10
Keep for Your Records
1. Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the
amount on your 1999 Schedule A (Form 1040), line 5
1.
2. Enter your total allowable itemized deductions from your 1999 Schedule A
(Form 1040), line 28
2.
Note. If the filing status on your 1999 Form 1040 was married filing separately
and your spouse itemized deductions in 1999, 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 1999 Form 1040.
Single--$4,300
Married filing jointly or
qualifying widow(er)--$7,200
3.
Married filing separately--$3,600
Head of household--$6,350
4. Did you fill in line 35a on your 1999 Form 1040?
No.
Enter -0-.
Yes. Multiply the number on line 35a of your 1999
Form 1040 by: $850 if your 1999 filing status
4.
was married filing jointly or separately or
qualifying widow(er); $1,050 if your 1999
filing status was single or head of household
5. Add lines 3 and 4
5.
6. Subtract line 5 from line 2. If zero or less, enter -0-
6.
7. Taxable part of your refund. Enter the smaller of line 1 or line 6 here and on Form 1040,
line 10
7.
Need more information or forms? See page 7.
- 22 -

Form 1040--Lines 12 Through 16b
15b instructions, an IRA includes a tradi-
line 15b the amount from your 1998 Form
Line 12
tional IRA, Roth IRA, education (Ed) IRA,
8606, line 17. But you may have to enter a
simplified employee pension (SEP) IRA,
different amount on line 15b if any of the
Business Income or (Loss)
and a savings incentive match plan for em-
following apply.
ployees (SIMPLE) IRA. Leave line 15a
You received a distribution from a Roth
If you operated a business or practiced your
blank and enter the total distribution on
IRA in 2000. Use Form 8606 to figure the
profession as a sole proprietor, report your
line 15b.
amount to enter on line 15b.
income and expenses on Schedule C or
C-EZ.
You received a distribution from a Roth
Exception. Do not enter your total IRA dis-
IRA in 1998 or 1999. See Pub. 590 to figure
tribution on line 15b if any of the following
the amount to enter on line 15b.
apply.
Line 13
The owner of the Roth IRA died in
1. You made nondeductible contributions
2000. See Pub. 590 to figure the amount to
to any of your traditional or SEP IRAs for
Capital Gain or (Loss)
enter on line 15b.
2000 or an earlier year. Instead, use Form
If you had a capital gain or loss, including
8606 to figure the amount to enter on line
Note. If you received a distribution from
any capital gain distributions from a
15b; enter the total distribution on line 15a.
another type of IRA, figure the taxable
mutual fund, you must complete and attach
If you made nondeductible contributions to
amount of the distribution and enter the total
Schedule D.
these IRAs for 2000, also see Pub. 590.
of the taxable amounts on line 15b.
2. You converted part or all of a tradi-
Exception. You do not have to file
tional, SEP, or SIMPLE IRA to a Roth IRA
Schedule D if all three of the following
in 2000. Instead, use Form 8606 to figure
Lines 16a and 16b
apply.
the amount to enter on line 15b; enter the
1. The only amounts you have to report
total distribution on line 15a.
Pensions and Annuities
on Schedule D are capital gain distributions
3. You made an excess contribution in
from box 2a of Forms 1099-DIV or substi-
You should receive a Form 1099-R show-
2000 to your IRA and withdrew it during
tute statements.
ing the amount of your pension and annuity
the period of January 1, 2001, through
payments. See page 25 for details on roll-
2. None of the Forms 1099-DIV or sub-
April 16, 2001. Enter the total distribution
overs and lump-sum distributions. Do not
stitute statements have an amount in box 2b
on line 15a and the taxable part (the earn-
include the following payments on lines 16a
(28% rate gain), box 2c (unrecaptured sec-
ings) on line 15b.
and 16b. Instead, report them on line 7.
tion 1250 gain), or box 2d (section 1202
4. You received a distribution from an Ed
gain).
Disability pensions received before you
or Roth IRA and the total distribution was
reach the minimum retirement age set by
3. You are not filing Form 4952 (relating
not rolled over into another IRA of the same
your employer.
to investment interest expense deduction) or
type. Instead, use Form 8606 to figure the
the amount on line 4e of that form is not
amount to enter on line 15b; enter the total
Corrective distributions of excess
more than zero.
distribution on line 15a.
salary deferrals or excess contributions to
retirement plans.
If all three of the above apply, enter your
5. You rolled your IRA distribution over
capital gain distributions on line 13 and
into another IRA of the same type (for ex-
check the box on that line. Also, be sure you
ample, from one traditional IRA to another
Attach Form(s) 1099-R to Form
use the Capital Gain Tax Worksheet on
traditional IRA). Enter the total distribution
1040 if any Federal income tax
page 33 to figure your tax.
on line 15a and put "Rollover" next to line
was withheld.
15b. If the total on line 15a was rolled over,
enter zero on line 15b. If the total was not
Line 14
Fully Taxable Pensions and
rolled over, enter the part not rolled over on
Annuities
line 15b. But if item 1 above also applies,
Other Gains or (Losses)
use Form 8606 to figure the taxable part.
If your pension or annuity is fully taxable,
enter it on line 16b; do not make an entry
If you sold or exchanged assets used in a
If you rolled over the distribution (a) in
on line 16a. Your payments are fully taxable
trade or business, see the Instructions for
2001 or (b) from a conduit IRA into a qual-
if either of the following applies.
Form 4797.
ified plan, attach a statement explaining
what you did.
You did not contribute to the cost (see
page 25) of your pension or annuity or
Lines 15a and 15b
You may have to pay an addi-
You got your entire cost back tax free
tional tax if (1) you received an
before 2000.
IRA Distributions
early distribution from your IRA
Fully taxable pensions and annuities also
and the total distribution was not
Note. If you converted part or all of an IRA
include military retirement pay shown on
rolled over or (2) you were born before
to a Roth IRA in 1998 and you chose to
Form 1099-R. For details on military dis-
July 1, 1929, and received less than the
report the taxable amount over 4 years, see
ability pensions, see Pub. 525. If you re-
minimum required distribution. See the in-
1998 Roth IRA Conversions on this page.
ceived a Form RRB-1099-R, see Pub. 575
structions for line 54 on page 38 for details.
to find out how to report your benefits.
You should receive a Form 1099-R show-
Partially Taxable Pensions and
1998 Roth IRA Conversions. If you con-
ing the amount of the distribution from your
Annuities
verted an IRA to a Roth IRA in 1998 and
individual retirement arrangement (IRA).
you chose to report the taxable amount over
If your pension or annuity is partially taxa-
Unless otherwise noted in the line 15a and
4 years, leave line 15a blank and enter on
ble and your Form 1099-R does not show
- 23 -
Need more information or forms? See page 7.

Form 1040--Lines 16a and 16b
the taxable part, you must use the General
lower taxable amount by using the General
method. But if your annuity starting date
Rule to figure the taxable part. The General
Rule or the Simplified Method.
was after November 18, 1996, and all three
Rule is explained in Pub. 939. However, if
Once you have figured the taxable part of
of the following apply, you must use the
your annuity starting date (defined on this
your pension or annuity, enter that amount
Simplified Method.
page) was after July 1, 1986, you may be
on line 16b and the total on line 16a.
1. The payments are for (a) your life or
able to use the Simplified Method explained
(b) your life and that of your beneficiary.
on this page. But if your annuity starting
Annuity Starting Date
2. The payments are from a qualified em-
date was after November 18, 1996, and
ployee plan, a qualified employee annuity,
items 1, 2, and 3 under Simplified Method
Your annuity starting date is the later of the
or a tax-sheltered annuity.
apply, you must use the Simplified Method
first day of the first period for which you
to figure the taxable part.
received a payment, or the date the plan's
3. At the time the pension or annuity pay-
obligations became fixed.
ments began, either you were under age 75
You can ask the IRS to figure the taxable
or the number of years of guaranteed pay-
part for you for an $85 fee. For details, see
Simplified Method
ments was fewer than 5. See Pub. 575 for
Pub. 939.
the definition of guaranteed payments.
If your Form 1099-R shows a taxable
If your annuity starting date (defined above)
If all three apply, use the worksheet below
amount, you may report that amount on
was after July 1, 1986, and all three of the
to figure the taxable part of your pension or
line 16b. But you may be able to report a
following apply, you can use this simpler
Simplified Method Worksheet--Lines 16a and 16b
Keep for Your Records
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 2000 on Form 1040, line 16a.
1. Enter the total pension or annuity payments received this year. Also, enter this amount on Form 1040,
line 16a
1.
2. Enter your cost in the plan at the annuity starting date plus any death benefit
exclusion (see page 25)
2.
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
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
9.
Table 1 for Line 3 Above
AND your annuity starting date was--
IF the age at annuity starting date
before November 19, 1996,
after November 18, 1996,
(see page 25) was . . .
enter on line 3 . . .
enter on line 3 . . .
55 or under
300
360
5660
260
310
6165
240
260
6670
170
210
71 or older
120
160
Table 2 for Line 3 Above
IF the combined ages at annuity starting date
(see page 25) were . . .
THEN enter on line 3 . . .
110 or under
410
111120
360
121130
310
131140
260
141 or older
210
Need more information or forms? See page 7.
- 24 -

Form 1040--Lines 16a Through 21
annuity. For more details on the Simplified
direct rollover, from one qualified employ-
repaid more than $3,000, see Repayments
Method, see Pub. 575 or Pub. 721 for U.S.
er's plan to another or to an IRA or SEP.
in Pub. 525 for details on how to report the
Civil Service retirement.
Enter on line 16a the total distribution
repayment.
before income tax or other deductions were
If you received U.S. Civil Ser-
withheld. This amount should be shown in
vice retirement benefits and you
box 1 of Form 1099-R. From the total on
Lines 20a and 20b
chose
the
lump-sum
credit
line 16a, subtract any contributions (usually
option, use the worksheet in Pub.
shown in box 5) that were taxable to you
Social Security Benefits
721. Do not use the worksheet on page 24.
when made. From that result, subtract the
amount that was rolled over either directly
You should receive a Form SSA-1099
Age (or Combined Ages) at
or within 60 days of receiving the distribu-
showing in box 3 the total social security
Annuity Starting Date
tion. Enter the remaining amount, even if
benefits paid to you. Box 4 will show the
amount of any benefits you repaid in 2000.
If you are the retiree, use your age on the
zero, on line 16b. Also, put "Rollover" next
If you received railroad retirement benefits
annuity starting date. If you are the survivor
to line 16b.
treated as social security, you should receive
of a retiree, use the retiree's age on his or
Special rules apply to partial rollovers of
a Form RRB-1099.
her annuity starting date. But if your annuity
property. For more details on rollovers, in-
starting date was after 1997 and the pay-
cluding distributions under qualified domes-
Use the worksheet on page 26 to see if
ments are for your life and that of your
tic relations orders, see Pub. 575.
any of your benefits are taxable.
beneficiary, use your combined ages on the
annuity starting date.
Lump-Sum Distributions
Exceptions. Do not use the worksheet on
page 26 if any of the following apply.
If you are the beneficiary of an employee
If you received a lump-sum distribution
who died, see Pub. 575. If there is more than
You made contributions to a traditional
from a profit-sharing or retirement plan,
one beneficiary, see Pub. 575 or Pub. 721
IRA for 2000 and you were covered by a
your Form 1099-R should have the "Total
to figure each beneficiary's taxable amount.
retirement plan at work or through self-
distribution" box in box 2b checked. You
employment. Instead, use the worksheets in
may owe an additional tax if you received
Changing Methods
Pub. 590 to see if any of your social security
an early distribution from a qualified retire-
benefits are taxable and to figure your IRA
If your annuity starting date was after July
ment plan and the total amount was not
deduction.
1, 1986, and before November 19, 1996,
rolled over. For details, see the instructions
You repaid any benefits in 2000 and
you may be able to change from the General
for line 54 on page 38.
your total repayments (box 4) were more
Rule to the Simplified Method (or the other
Enter the total distribution on line 16a and
than your total benefits for 2000 (box 3).
way around). For details, see Pub. 575 or
the taxable part on line 16b.
None of your benefits are taxable for 2000.
Pub. 721.
In addition, you may be able to take an
You may be able to pay less tax
Cost
itemized deduction for part of the excess
on the distribution if you were
repayments if they were for benefits you
born before 1936, you meet cer-
Your cost is generally your net investment
included in gross income in an earlier year.
tain other conditions, and you
in the plan as of the annuity starting date.
For more details, see Pub. 915.
choose to use Form 4972 to figure the tax
It should be shown in box 9b of Form
on any part of the distribution. You may also
You file Form 2555, 2555-EZ, 4563,
1099-R for the first year you received pay-
be able to use Form 4972 if you are the
or 8815, or you exclude employer-provided
ments from the plan.
beneficiary of a deceased employee who
adoption benefits or income from sources
within Puerto Rico. Instead, use the work-
Death Benefit Exclusion. If you are the
was born before 1936. For details, see Form
sheet in Pub. 915.
beneficiary of a deceased employee or
4972.
former employee who died before August
21, 1996, amounts paid to you by, or on
behalf of, an employer because of the death
Line 19
Line 21
of the employee may qualify for a death
benefit exclusion of up to $5,000. If you are
Unemployment
Other Income
entitled to this exclusion, add it to the
Compensation
amount you enter on line 2 of the worksheet
Do not report on this line any
on page 24. Do this even if the Form 1099-R
You should receive a Form 1099-G show-
income from self-employment
shows a taxable amount. The payer of the
ing the total unemployment compensation
or fees received as a notary
annuity cannot add the death benefit exclu-
paid to you in 2000.
public. Instead, you must use
sion to your cost when figuring the taxable
If you received an overpayment of unem-
Schedule C, C-EZ, or F, even if you do not
amount. Special rules apply if you are the
ployment compensation in 2000 and you
have any business expenses. Also, do not
survivor under a joint and survivor's annu-
repaid any of it in 2000, subtract the amount
report on line 21 any nonemployee compen-
ity. For details, see Pub. 939.
you repaid from the total amount you re-
sation shown on Form 1099-MISC. In-
ceived. Enter the result on line 19. Also,
stead, see the chart on page 18 to find out
Rollovers
enter "Repaid" and the amount you repaid
where to report that income.
A rollover is a tax-free distribution of cash
on the dotted line next to line 19. If, in 2000,
or other assets from one retirement plan that
you repaid unemployment compensation
Use line 21 to report any other income not
is contributed to another plan. Use lines 16a
that you included in gross income in an
reported on your return or other schedules.
and 16b to report a rollover, including a
earlier year, you may deduct the amount
See examples that begin on page 26. List
repaid on Schedule A, line 22. But if you
the type and amount of income. If necessary,
- 25 -
Need more information or forms? See page 7.

Form 1040--Lines 20a Through 21
show the required information on an at-
Examples of income to report on line 21
Jury duty fees. Also, see the instruc-
tached statement. For more details, see Mis-
are:
tions for line 32 on page 30.
cellaneous Taxable Income in Pub. 525.
Prizes and awards.
Alaska Permanent Fund dividends.
Gambling winnings, including lotter-
Qualified state tuition program earn-
Do not report any nontaxable
ies, raffles, a lump-sum payment from the
ings.
income on line 21, such as child
sale of a right to receive future lottery pay-
support; money or property that
Reimbursements or other amounts re-
ments, etc. For details on gambling losses,
was inherited, willed to you, or
ceived for items deducted in an earlier year,
see the instructions for Schedule A, line 27,
received as a gift; or life insurance proceeds
such as medical expenses, real estate taxes,
on page A-6.
received because of a person's death.
or home mortgage interest. See Recoveries
Social Security Benefits Worksheet--Lines 20a and 20b
Keep for Your Records
Before you begin:
Complete Form 1040, lines 21, 23, and 25 through 31a, if they apply to you.
Figure any amount to be entered on the dotted line next to line 32 (see page 30).
If you are married filing separately and you lived apart from your spouse for all
of 2000, enter "D" to the right of the word "benefits" on line 20a.
Be sure you have read the Exceptions on page 25 to see if you must use a
publication instead of this worksheet 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 RRB-1099
1.
2. Is the amount on line 1 more than zero?
No.
STOP
None of your social security benefits are taxable.
Yes. Enter one-half of line 1
2.
3. Add the amounts on Form 1040, lines 7, 8a, 9 through 14, 15b, 16b, 17 through 19, and 21. Do not
include amounts from box 5 of Forms SSA-1099 or RRB-1099
3.
4. Enter the amount, if any, from Form 1040, line 8b
4.
5. Add lines 2, 3, and 4
5.
6. Add the amounts on Form 1040, lines 23, and 25 through 31a, and any amount you entered on the
dotted line next to line 32
6.
7. Subtract line 6 from line 5
7.
8. Enter: $25,000 if single, head of household, qualifying widow(er), or married filing separately and you
lived apart from your spouse for all of 2000; $32,000 if married filing jointly; -0- if married filing
separately and you lived with your spouse at any time in 2000
8.
9. Is the amount on line 8 less than the amount on line 7?
STOP
No.
None of your social security benefits are taxable. You do not have to enter any amounts
on lines 20a or 20b of Form 1040. But if you are married filing separately and you
lived apart from your spouse for all of 2000, enter -0- on line 20b. 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: $9,000 if single, head of household, qualifying widow(er), or married filing separately and you
lived apart from your spouse for all of 2000; $12,000 if married filing jointly; -0- if married filing
separately and you lived with your spouse at any time in 2000
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
18.
Enter the amount from line 1 above on Form 1040, line 20a.
Enter the amount from line 18 above on Form 1040, line 20b.
If part of your benefits are taxable for 2000 and they include benefits paid in 2000 that were for an earlier year, you may
be able to reduce the taxable amount. See Pub. 915 for details.
Need more information or forms? See page 7.
- 26 -

Form 1040--Lines 21 Through 24
in Pub. 525 for details on how to figure the
If you made contributions to your IRA Married Persons Filing Separately. If you
amount to report.
in 2000 that you deducted for 1999, do not
were not covered by a retirement plan but
Income from the rental of personal include them in the worksheet.
your spouse was, you are considered cov-
property if you engaged in the rental for
If you received a distribution from a ered by a plan unless you lived apart from
profit but were not in the business of renting
nonqualified deferred compensation plan or
your spouse for all of 2000.
such property. Also, see the instructions for
section 457 plan that is included in box 1
line 32 on page 30.
of your W-2 form, do not include that dis-
Income from an activity not engaged in tribution on line 8 of the worksheet. The Line 24
for profit. See Pub. 535.
distribution should be shown in box 11 of

your W-2 form.
Loss on certain corrective distributions
Student Loan Interest
of excess deferrals. See Pub. 525.
You must file a joint return to deduct Deduction
contributions to your spouse's IRA. Enter
the total IRA deduction for you and your
Use the worksheet on page 29 to figure your
spouse on line 23.
student loan interest deduction if all five of
Adjusted Gross

the following apply.
Do not include rollover contributions
Income
in figuring your deduction. Instead, see the
1. You paid interest in 2000 on a qualified
instructions for lines 15a and 15b on page
student loan (see below).
23.
2. At least part of the interest paid in 2000
Do not include trustee's fees that were was paid during the first 60 months that
Line 23
billed separately and paid by you for your
interest payments were required to be made.
IRA. These fees can be deducted only as an
See Example below.
IRA Deduction
itemized deduction on Schedule A.
3. Your filing status is any status except
If the total of your IRA deduction on married filing separately.
If you made any nondeductible
Form 1040 plus any nondeductible contri-
4. Your modified adjusted gross income
contributions to a traditional in-
bution to your traditional IRAs shown on
(AGI) is less than: $55,000 if single, head
dividual retirement arrangement
Form 8606 is less than your total traditional
of household, or qualifying widow(er);
(IRA) for 2000, you must report
IRA contributions for 2000, see Pub. 590
$75,000 if married filing jointly. Most
them on Form 8606.
for special rules.
people can use lines 3 through 5 of the work-
sheet on page 29 to figure their modified
By April 1 of the year after the
AGI.
If you made contributions to a traditional
year in which you turn age 701/
IRA for 2000, you may be able to take an
2,
5. You are not claimed as a dependent on
you must start taking minimum
IRA deduction. But you, or your spouse if
someone's (such as your parent's) 2000 tax
required distributions from your
filing a joint return, must have had earned
return.
traditional IRA. If you do not, you may have
income to do so. For IRA purposes, earned
to pay a 50% additional tax on the amount
income includes certain alimony received.
Example. You took out a qualified student
that should have been distributed. For de-
See Pub. 590 for details. You should receive
loan in 1993 while in college. You had 6
tails, including how to figure the minimum
a statement by May 31, 2001, that shows all
years to repay the loan and your first month-
required distribution, see Pub. 590.
contributions to your traditional IRA for
ly payment was due July 1995, after you
2000.
graduated. You made a payment every
Were You Covered by a
month as required. If you meet items 3
Use the worksheet on page 28 to figure
Retirement Plan?
through 5 listed above, you may use only
the amount, if any, of your IRA deduction.
the interest you paid for January through
But read the following list before you fill
If you were covered by a retirement plan
June 2000 to figure your deduction. June is
in the worksheet.
(qualified pension, profit-sharing (including
the end of the 60-month period (July 1995

401(k)), annuity, SEP, SIMPLE, etc.) at
If you were age 701/2 or older at the end
work or through self-employment, your IRA
June 2000).
of 2000, you cannot deduct any contribu-
deduction may be reduced or eliminated.
tions made to your traditional IRA for 2000
But you can still make contributions to an
Qualified Student Loan. This is any loan
or treat them as nondeductible contributions.
IRA even if you cannot deduct them. In any
you took out to pay the qualified higher
You cannot deduct contributions to a case, the income earned on your IRA con- education expenses for yourself, your
Roth IRA or an education IRA.
tributions is not taxed until it is paid to you.
spouse, or anyone who was your dependent
when the loan was taken out. The person for
The "Pension plan" box in box 15 of your
whom the expenses were paid must have
If you made contributions to both
W-2 form should be checked if you were
been an eligible student (see page 28). How-
a traditional IRA and a Roth IRA
covered by a plan at work even if you were
ever, a loan is not a qualified student loan
for 2000, do not use the work-
not vested in the plan. You are also covered
if (1) any of the proceeds were used for other
sheet on page 28. Instead, use the
by a plan if you were self-employed and had
purposes or (2) the loan was from either a
worksheet in Pub. 590 to figure the amount,
a SEP, SIMPLE, or qualified retirement
related person or a person who borrowed the
if any, of your IRA deduction.
plan.
proceeds under a qualified employer plan or
If you were covered by a retirement plan
a contract purchased under such a plan. To
You cannot deduct contributions to a and you file Form 2555, 2555-EZ, or 8815, find out who is a related person, see Pub.
401(k) plan, SIMPLE plan, or the Federal
or you exclude employer-provided adoption
970.
Thrift Savings Plan. These amounts are not
benefits, see Pub. 590 to figure the amount,
Qualified higher education expenses
included as income in box 1 of your W-2
if any, of your IRA deduction.
generally include tuition, fees, room and
form.
board, and related expenses such as books
- 27 -
Need more information or forms? See page 7.

Form 1040--Lines 23 and 24
and supplies. The expenses must be for ed-
Excludable U.S. series EE and I sav-
An eligible student is a person who:
ucation in a degree, certificate, or similar
ings bond interest from Form 8815.
Was enrolled in a degree, certificate, or
program at an eligible educational institu-
Qualified distributions from an educa- other program (including a program of study
tion. An eligible educational institution in-
tion IRA.
abroad that was approved for credit by the
cludes most colleges, universities, and
Any scholarship, educational assis- institution at which the student was en-
certain vocational schools. You must reduce
tance allowance, or other payment (but not
rolled) leading to a recognized educational
the expenses by the following nontaxable
gifts, inheritances, etc.) excluded from
credential at an eligible educational institu-
benefits.
income.
tion and
Employer-provided educational assis-
For more details on these expenses, see
tance benefits that are not included in
Pub. 970.
box 1 of your W-2 form(s).
IRA Deduction Worksheet--Line 23
Keep for Your Records
Before you begin:
Complete Form 1040, lines 25 through 31a, if they apply to you.
Figure any amount to be entered on the dotted line next to line 32 (see page 30).
Be sure you have read the list on page 27.
Your
Spouse's
IRA
IRA
1a. Were you covered by a retirement plan (see page 27)?
1a.
Yes
No
1b. If married filing jointly, was your spouse covered by a retirement plan?
1b.
Yes
No
Next. If you checked "No" on line 1a, and, if married filing jointly, "No" on line
1b, skip lines 26, enter $2,000 on line 7a (and 7b if applicable), and go to line 8.
Otherwise, go to line 2.
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 2000, enter $42,000
Qualifying widow(er), enter $62,000
Married filing jointly, enter $62,000 in both columns. But if you checked
2a.
2b.
"No" on either line 1a or 1b, enter $160,000 for the person who was not
covered by a plan
Married filing separately and you lived with your spouse at any time in
2000, enter $10,000
3.
Enter the amount from Form 1040, line 22
3.
4.
Add amounts on Form 1040, lines 25 through 31a, and any
amount you entered on the dotted line next to line 32
4.
5.
Subtract line 4 from line 3. Enter the result in both columns
5a.
5b.
6.
Is the amount on line 5 less than the amount on line 2?
No.
STOP
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. If the result is $10,000 or
more, enter $2,000 on line 7 for that column
6a.
6b.
7.
Multiply lines 6a and 6b by 20% (.20). 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
7a.
7b.
8.
Enter your wages, and your spouse's if filing jointly, and other
earned income from Form 1040, minus any deductions on Form
1040, lines 27 and 29. Do not reduce wages by any loss from
self-employment
8.
If married filing jointly and line 8 is less than $4,000, stop here and see
Pub. 590 to figure your IRA deduction.
9.
Enter traditional IRA contributions made, or that will be made by April 16, 2001,
for 2000 to your IRA on line 9a and to your spouse's IRA on line 9b
9a.
9b.
10.
On line 10a, enter the smallest of line 7a, 8, or 9a. On line 10b, enter the smallest
of line 7b, 8, or 9b. This is the most you can deduct. Add the amounts on lines 10a
and 10b and enter the total on Form 1040, line 23. Or, if you want, you may deduct
a smaller amount and treat the rest as a nondeductible contribution (see Form 8606) 10a.
10b.
Need more information or forms? See page 7.
- 28 -

Form 1040--Lines 24 Through 28
Carried at least half the normal full-
The insurance plan must be established
time workload for the course of study he or
Line 27
under your business. But if you were also
she was pursuing.
eligible to participate in any subsidized
One-Half of Self-
health plan maintained by your or your
Employment Tax
spouse's employer for any month or part of
Line 25
a month in 2000, amounts paid for health
If you were self-employed and owe self-
insurance coverage for that month cannot be
employment tax, fill in Schedule SE to
Medical Savings Account
used to figure the deduction. For example,
figure the amount of your deduction.
if you were eligible to participate in a sub-
Deduction
sidized health plan maintained by your
If you made contributions to a medical sav-
spouse's employer from September 30
ings account for 2000, you may be able to
Line 28
through December 31, you cannot use
take this deduction. See Form 8853.
amounts paid for health insurance coverage
Self-Employed Health
for September through December to figure
your deduction. For more details, see Pub.
Insurance Deduction
Line 26
535.
You may be able to deduct part of the
If you qualify to take the deduction, use
amount paid for health insurance for your-
Moving Expenses
the worksheet on page 30 to figure the
self, your spouse, and dependents if either
amount you can deduct.
If you moved in connection with your job
of the following applies.
or business or started a new job, you may
You were self-employed and had a net Exception. Use Pub. 535 instead of the
be able to take this deduction. But your new
profit for the year.
worksheet on page 30 to find out how to
workplace must be at least 50 miles farther

figure your deduction if any of the following
You received wages in 2000 from an S
from your old home than your old home was
apply.
corporation in which you were a more-
from your old workplace. If you had no
than-2% shareholder. Health insurance ben-
You had more than one source of
former workplace, your new workplace
efits paid for you may be shown in box 14
income subject to self-employment tax.
must be at least 50 miles from your old
of your W-2 form.
You file Form 2555 or 2555-EZ.
home. Use TeleTax topic 455 (see page 11)
You are using amounts paid for quali-
or see Form 3903.
fied long-term care insurance to figure the
deduction.
Student Loan Interest Deduction Worksheet--Line 24
Keep for Your Records
Before you begin:
Complete Form 1040, lines 25 through 31a, if they apply to you.
Figure any amount to be entered on the dotted line next to line 32 (see page 30).
See the instructions for line 24 that begin on page 27.
If you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, skip lines
3 and 4 below and see Pub. 970 to figure your modified AGI to enter on line 5 below.
1. Enter the total interest you paid in 2000 on qualified student loans (defined on page 27). Do not include
interest that was required to be paid after the first 60 months
1.
2. Enter the smaller of line 1 or $2,000
2.
3. Enter the amount from Form 1040, line 22
3.
4. Enter the total of the amounts from Form 1040, line 23, lines 25 through 31a,
plus any amount you entered on the dotted line next to line 32
4.
5. Modified AGI. Subtract line 4 from line 3
5.
6. Enter the amount shown below for your filing status.
Single, head of household, or qualifying widow(er)--$40,000
6.
Married filing jointly--$60,000
7. Is the amount on line 5 more than the amount on line 6?
No.
Skip lines 7 and 8, enter -0- on line 9, and go to line 10.
Yes. Subtract line 6 from line 5
7.
8. Divide line 7 by $15,000. Enter the result as a decimal (rounded to at least three places). Do not enter
more than "1.000"
8.
.
9. Multiply line 2 by line 8
9.
10. Student loan interest deduction. Subtract line 9 from line 2. Enter the result here and on Form 1040,
line 24. Do not include this amount in figuring any other deduction on your return (such as on
Schedule A, C, E, etc.)
10.
- 29 -
Need more information or forms? See page 7.

Form 1040--Lines 28 Through 35a
Performing-arts-related expenses (see
Line 29
Form 2106 or 2106-EZ). Identify as
Tax and Credits
"QPA."
Self-Employed SEP, SIMPLE,
Jury duty pay given to your employer
and Qualified Plans
(see Pub. 525). Identify as "Jury Pay."
Line 35a
Deductible expenses related to income
If you were self-employed or a partner, you
If you were age 65 or older or blind, check
reported on line 21 from the rental of per-
may be able to take this deduction. See Pub.
the appropriate box(es) on line 35a. If you
sonal property engaged in for profit. Identify
560 or, if you were a minister, Pub. 517.
were married and checked the box on line
as "PPR."
6b of Form 1040 and your spouse was age
Reforestation amortization (see Pub. 65 or older or blind, also check the appro-
Line 30
535). Identify as "RFST."
priate box(es) for your spouse. Be sure to
Repayment of supplemental unemploy- enter the total number of boxes checked.
Penalty on Early Withdrawal
ment benefits under the Trade Act of 1974
(see Pub. 525). Identify as "Sub-Pay TRA."
of Savings
Age
Contributions to section 501(c)(18) If you were age 65 or older on January 1,
The Form 1099-INT or Form 1099-OID
pension plans (see Pub. 525). Identify as
2001, check the "65 or older" box on your
you received will show the amount of any
"501(c)(18)."
2000 return.
penalty you were charged.
Contributions by certain chaplains to
section 403(b) plans (see Pub. 517). Identify
Blindness
as "403(b)."
Lines 31a and 31b
Deduction for clean-fuel vehicles (see If you were partially blind as of December
Pub. 535). Identify as "Clean-Fuel."
31, 2000, you must get a statement certified
Alimony Paid

by your eye doctor or registered optometrist
Employee business expenses of fee-
that:
If you made payments to or for your spouse
basis state or local government officials (see
You cannot see better than 20/200 in
or former spouse under a divorce or sepa-
Form 2106 or 2106-EZ). Identify as
your better eye with glasses or contact lenses
ration instrument, you may be able to take
"FBO."
or
this deduction. Use TeleTax topic 452 (see
Your field of vision is 20 degrees or
page 11) or see Pub. 504.
Line 33
less.
If your eye condition is not likely to im-
If line 33 is less than zero, you may have a
Line 32
prove beyond the conditions listed above,
net operating loss that you can carry to an-
you can get a statement certified by your
Include in the total on line 32 any of the
other tax year. See Pub. 536.
eye doctor or registered optometrist to this
following adjustments. To find out if you
effect instead.
can take the deduction, see the form or pub-
You must keep the statement for your
lication indicated. On the dotted line next to
records.
line 32, enter the amount of your deduction
and identify it as indicated.
Self-Employed Health Insurance Deduction Worksheet--Line 28
Keep for Your Records
Before you begin:
Be sure you have read the Exception on page 29 to see if you can use this
worksheet instead of Pub. 535 to figure your deduction.
Complete Form 1040, line 29, if it applies to you.
1. Enter the total amount paid in 2000 for health insurance coverage established under your business for
2000 for you, your spouse, and dependents. But do not include amounts for any month you were eligible
to participate in an employer-sponsored health plan
1.
2. Multiply line 1 by 60% (.60)
2.
3. Enter your net profit and any other earned income* from the business under which the insurance plan is
established, minus any deductions you claim on Form 1040, lines 27 and 29
3.
4. Self-employed health insurance deduction. Enter the smaller of line 2 or line 3 here and on
Form 1040, line 28. Do not include this amount in figuring any medical expense deduction on Schedule
A (Form 1040)
4.
* Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. 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 wages from that corporation.
Need more information or forms? See page 7.
- 30 -

Form 1040--Lines 35b Through 36
Line 35b
Line 36
If you checked the box on line
35b, your standard deduction is
If your spouse itemizes deductions on a sep-
Itemized Deductions or
zero.
arate return or if you were a dual-status
alien, check the box on line 35b. But if you
Standard Deduction
Itemized Deductions
were a dual-status alien and you file a joint
In most cases, your Federal income tax will
To figure your itemized deductions, fill in
return with your spouse who was a U.S.
be less if you take the larger of:
Schedule A.
citizen or resident at the end of 2000 and
Your itemized deductions or
you and your spouse agree to be taxed on
(Continued on page 32)
your combined worldwide income, do not
Your standard deduction.
check the box.
Standard Deduction Chart for People Age 65 or Older or Blind--Line 36
If someone can claim you (or your spouse if married filing jointly) as a dependent, use the worksheet below instead.
Do not use the number of exemptions from
Enter the number from the box on line 35a of
line 6d.
Form 1040
AND the number in the
THEN your standard
IF your filing status is . . .
box above is . . .
deduction is . . .
1
$5,500
Single
2
6,600
1
$8,200
Married filing jointly
2
9,050
or
3
9,900
Qualifying widow(er)
4
10,750
1
$4,525
2
5,375
Married filing separately
3
6,225
4
7,075
1
$7,550
Head of household
2
8,650
Standard Deduction Worksheet for Dependents--Line 36
Keep for Your Records
Use this worksheet only if someone can claim you (or your spouse if married filing jointly) as a dependent.
1.
Add $250 to your earned income*. Enter the total
1.
2.
2.
700.00
Minimum standard deduction
3.
Enter the larger of line 1 or line 2
3.
4.
Enter the amount shown below for your filing status.
Single--$4,400
Married filing separately--$3,675
4.
Married filing jointly or qualifying widow(er)--$7,350
Head of household--$6,450
5.
Standard deduction.
a. Enter the smaller of line 3 or line 4. If under 65 and not blind, stop here and enter this amount on
Form 1040, line 36. Otherwise, go to line 5b
5a.
b. If 65 or older or blind, multiply the number on Form 1040, line 35a, by: $1,100 if single or head of
household; $850 if married filing jointly or separately, or qualifying widow(er)
5b.
c. Add lines 5a and 5b. Enter the total here and on Form 1040, line 36
5c.
*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.
- 31 -
Need more information or forms? See page 7.

Form 1040--Lines 36 Through 40
Standard Deduction
Line 39
Line 40
Most people can find their standard deduc-
tion by looking at the amounts to the left of
Taxable Income
Tax
line 36 of Form 1040. But if you checked
any box on line 35a, or you (or your spouse
If You Want, the IRS Will Figure
Use one of the following methods to figure
if filing jointly) can be claimed as a depen-
Your Tax and Some of Your
your tax. Also include in the total on line
dent on someone's 2000 return, use the chart
Credits
40 any of the following taxes.
or worksheet on page 31 that applies to you
Tax from Forms 8814 and 4972. Be
to figure your standard deduction. Also, if
Tax. If you have paid too much, we will
sure to check the appropriate box(es).
you checked the box on line 35b, your stan-
send you a refund. If you did not pay
dard deduction is zero, even if you were age
Tax from recapture of an education
enough, we will send you a bill. For details,
65 or older or blind.
credit. See Form 8863 to find out if you
including who is eligible and what to do,
owe this tax and, if you do, how to figure
see Pub. 967.
Electing To Itemize for State Tax
the amount to include on line 40. You may
or Other Purposes
Credit for the Elderly or the Disabled. If
owe this tax if (1) you claimed an education
you can take this credit and you want us to
credit on your 1998 or 1999 return and (2)
If you itemize even though your itemized
figure it for you, see the Instructions for
you, your spouse if filing jointly, or your
deductions are less than your standard de-
Schedule R.
dependent received in 2000 either a refund
duction, enter "IE" next to line 36.
of qualified tuition and related expenses or
Earned Income Credit (EIC). Follow the
tax-free educational assistance. Enter the
steps that begin on page 40 to see if you can
amount and "ECR" on the dotted line next
take this credit and, if you can, what to do
to line 40.
if you want us to figure it for you. But first,
complete your Form 1040 through line 59.
Tax Table or Tax Rate Schedules
If your taxable income is less than $100,000,
you must use the Tax Table, which starts
Deduction for Exemptions Worksheet--Line 38
Keep for Your Records
1. Is the amount on Form 1040, line 34, more than the amount shown on line 4 below for your filing status?
No.
STOP
Multiply $2,800 by the total number of exemptions claimed on Form 1040, line 6d, and enter
the result on line 38.
Yes.
Continue
2. Multiply $2,800 by the total number of exemptions claimed on Form 1040, line 6d
2.
3. Enter the amount from Form 1040, line 34
3.
4. Enter the amount shown below for your filing status.
Single--$128,950
Married filing jointly or qualifying widow(er)--$193,400
4.
Married filing separately--$96,700
Head of household--$161,150
5. Subtract line 4 from line 3
5.
Note. If line 5 is more than: $122,500 if single, married filing jointly, head of
household, or qualifying widow(er); $61,250 if married filing separately, stop here.
You cannot take a deduction for exemptions. Enter -0- on Form 1040,
line 38.
6. Divide line 5 by: $2,500 if single, married filing jointly, head of household, or
qualifying widow(er); $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 amount
7.
.
8. Multiply line 2 by line 7
8.
9. Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form 1040, line 38
9.
Need more information or forms? See page 7.
- 32 -

Form 1040--Lines 40 Through 41
on page 59 to figure your tax. Be sure you
Schedule D
Exception. Fill in Form 6251 instead of
use the correct column. If your taxable
using the worksheet on page 34 if you
If you had a net capital gain on Schedule D
income is $100,000 or more, use the Tax
claimed or received any of the following
(both lines 16 and 17 of Schedule D are
Rate Schedules on page 71.
items.
gains) and the amount on Form 1040, line
1. Accelerated depreciation.
Exceptions. Do not use the Tax Table or
39, is more than zero, use Part IV of Sched-
2. Stock by exercising an incentive stock
Tax Rate Schedules to figure your tax if
ule D to figure your tax.
option and you did not dispose of the stock
either of the following applies.
Capital Gain Tax Worksheet
in the same year.
You are required to use Form 8615,
3. Tax-exempt interest from private activ-
Schedule D, or the Capital Gain Tax
If you received capital gain distributions but
ity bonds.
Worksheet below or
you are not required to file Schedule D, use

the worksheet below to figure your tax.
4. Intangible drilling, circulation, re-
You use Schedule J (for farm income).
search, experimental, or mining costs.
Schedule J
Form 8615
5. Amortization of pollution-control facil-
If you had income from farming, your tax
ities or depletion.
Form 8615 must generally be used to figure
may be less if you choose to figure it using
the tax for any child who was under age 14
6. Income or (loss) from tax-shelter farm
income averaging on Schedule J.
on January 1, 2001, and who had more than
activities or passive activities.
$1,400 of investment income, such as taxa-
7. Percentage-of-completion income from
ble interest, ordinary dividends, or capital
long-term contracts.
gains (including capital gain distributions).
Line 41
8. Interest paid on a home mortgage not
But if neither of the child's parents was alive
used to buy, build, or substantially improve
on December 31, 2000, do not use Form
Alternative Minimum Tax
your home.
8615 to figure the child's tax.
Use the worksheet on page 34 to see if you
9. Investment interest expense reported on
should fill in Form 6251.
Form 4952.
(Continued on page 34)
Capital Gain Tax Worksheet--Line 40
Keep for Your Records
Before you begin:
Be sure you do not have to file Schedule D (see the instructions for
Form 1040, line 13, on page 23).
Be sure you checked the box on line 13 of Form 1040.
1. Enter the amount from Form 1040, line 39
1.
2. Enter the amount from Form 1040, line 13
2.
3. Subtract line 2 from line 1. If zero or less, enter -0-
3.
4. Figure the tax on the amount on line 3. Use the Tax Table or Tax Rate Schedules, whichever applies
4.
5. Enter the smaller of:
The amount on line 1 or
$26,250 if single; $43,850 if married filing jointly or
5.
qualifying widow(er); $21,925 if married filing separately;
or $35,150 if head of household.
6. Is the amount on line 3 equal to or more than the amount on line 5?
Yes. Leave lines 6 through 8 blank; go to line 9 and check the "No" box.
No. Enter the amount from line 3
6.
7. Subtract line 6 from line 5
7.
8. Multiply line 7 by 10% (.10)
8.
9. Are the amounts on lines 2 and 7 the same?
Yes. Leave lines 9 through 12 blank; go to line 13.
No. Enter the smaller of line 1 or line 2
9.
10. Enter the amount, if any, from line 7
10.
11. Subtract line 10 from line 9. If zero or less, enter -0-
11.
12. Multiply line 11 by 20% (.20)
12.
13. Add lines 4, 8, and 12
13.
14. Figure the tax on the amount on line 1. Use the Tax Table or Tax Rate Schedules, whichever applies
14.
15. Tax on all taxable income (including capital gain distributions). Enter the smaller of line 13 or
line 14 here and on Form 1040, line 40
15.
- 33 -
Need more information or forms? See page 7.

Form 1040--Lines 41 Through 43
10. Net operating loss deduction.
1. All of your gross foreign-source
11. Alternative minimum tax adjustments
Line 43
income is from interest and dividends and
from an estate, trust, electing large partner-
all of that income and the foreign tax paid
ship, or a cooperative.
Foreign Tax Credit
on it is reported to you on Form 1099-INT
or Form 1099-DIV (or substitute state-
12. Section 1202 exclusion.
If you paid income tax to a foreign country,
ment).
you may be able to take this credit. But you
Form 6251 should be filled in for
2. If you have dividend income from
must complete and attach Form 1116 to do
a child under age 14 if the child's
shares of stock, you held those shares for at
so.
adjusted
gross
income
from
least 16 days.
Form 1040, line 34, exceeds the
Exception. You do not have to file
3. You are not filing Form 4563 or ex-
child's earned income by more than $5,200.
Form 1116 to take this credit if all five of
cluding income from sources within Puerto
the following apply.
Rico.
(Continued on page 35)
Worksheet To See if You Should Fill in Form 6251--Line 41
Keep for Your Records
Before you begin:
Be sure you have read the Exception that begins on page 33 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 43, above), enter that credit on line 43.
1. Enter the amount from Form 1040, line 37
1.
2. Are you filing Schedule A?
Yes. Leave line 2 blank and go to line 3.
No. Enter your standard deduction from Form 1040, line 36, and go to line 5
2.
3. Enter the smaller of the amount on Schedule A, line 4, or 2.5% (.025) of the amount on Form 1040,
line 34
3.
4. Add lines 9 and 26 of Schedule A and enter the total
4.
5. Add lines 1 through 4 above
5.
6. 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
6.
Married filing separately--$22,500
7. Is the amount on line 5 more than the amount on line 6?
No.
STOP
You do not need to fill in Form 6251.
Yes. Subtract line 6 from line 5
7.
8. Enter the amount shown below for your filing status.
Single or head of household--$112,500
8.
Married filing jointly or qualifying widow(er)--$150,000
Married filing separately--$75,000
9. Is the amount on line 5 more than the amount on line 8?
No. Enter -0- here and on line 10 and go to line 11.
9.
Yes. Subtract line 8 from line 5.
10. Multiply line 9 by 25% (.25) and enter the result but do not enter more than line 6 above
10.
11. Add lines 7 and 10
11.
12. Is the amount on line 11 more than the amount shown below for your filing status?
Single, married filing jointly, head of household, or qualifying widow(er)--$175,000
Married filing separately--$87,500
Yes.
STOP
Fill in Form 6251 to see if you owe the alternative minimum tax.
No. Multiply line 11 by 26% (.26)
12.
13. Enter the amount from Form 1040, line 40, minus the total of any tax from Form 4972 and any amount
on Form 1040, line 43
13.
Next. Is the amount on line 12 more than the amount on line 13?
Yes. Fill in Form 6251 to see if you owe the alternative minimum tax.
No. Do not fill in Form 6251.
Need more information or forms? See page 7.
- 34 -

Form 1040--Lines 43 Through 46
4. The total of your foreign taxes is not
more than $300 (not more than $600 if mar-
Line 44
Line 46
ried filing jointly).
5. All of your foreign taxes were:
Credit for Child and
Education Credits
Legally owed and not eligible for a Dependent Care Expenses
If you (or your dependent) paid qualified
refund and
You may be able to take this credit if you
expenses in 2000 for yourself, your spouse,
Paid to countries that are recognized by paid someone to care for your child under or your dependent to enroll in or attend an
the United States and do not support terror-
age 13 or your dependent or spouse who
eligible educational institution, you may be
ism.
could not care for himself or herself. For
able to take an education credit. See Form
details, use TeleTax topic 602 (see page 11)
8863 for details. However, you cannot take
or see Form 2441.
an education credit if any of the following
Note. If you need more information about
apply.
these requirements, see the Instructions for
You are claimed as a dependent on
Form 1116.
Line 45
someone's (such as your parent's) 2000 tax
return.
Do you meet all five requirements that
begin on page 34?
Credit for the Elderly or the
Your filing status is married filing sep-
Disabled
arately.
The amount on Form 1040, line 34, is
Yes. Enter on line 43 the smaller of
You may be able to take this credit if by the
$50,000 or more ($100,000 or more if mar-
your total foreign tax or the amount on
end of 2000 (1) you were age 65 or older
ried filing jointly).
Form 1040, line 40.
or (2) you retired on permanent and total
You (or your spouse) were a nonresi-
disability and you had taxable disability
dent alien for any part of 2000 unless your
income. But you usually cannot take the
No. See Form 1116 to find out if you
filing status is married filing jointly.
credit if the amount on Form 1040, line 34,
can take the credit and, if you can, if you
is $17,500 or more ($20,000 if married filing
have to file Form 1116.
jointly and only one spouse is eligible for
the credit; $25,000 if married filing jointly
and both spouses are eligible; $12,500 if
married filing separately). See Schedule R
and its instructions for details.
- 35 -
Need more information or forms? See page 7.

Form 1040--Line 47
Line 47--Child Tax Credit
What Is the Child Tax Credit?
Questions
Who Must Use Pub. 972
Pub.
972
This credit is for people who have a qualifying child as defined
in the instructions for line 6c, column (4), on page 20. It is in
addition to the credit for child and dependent care expenses on
1. Are you excluding income from Puerto Rico or are you
Form 1040, line 44, and the earned income credit on
filing any of the following forms?
Form 1040, line 60a.
Form 2555 or 2555-EZ (relating to foreign earned
If you only have one or two qualifying children and
income)
the amount on Form 1040, line 42, is zero, you
cannot take this credit. You also cannot take the
Form 4563 (exclusion of income for residents of
additional child tax credit on Form 1040, line 62.
American Samoa)
No. Continue
Yes. STOP
Three Steps To Take the Child Tax Credit!
You must use Pub. 972 to
Step 1.
Make sure you have a qualifying child for the child
figure your credit instead
tax credit. See the instructions for line 6c,
of the worksheet on
column (4), on page 20.
page 37.
Step 2.
Make sure you checked the box in column (4) of
line 6c on Form 1040 for each qualifying child.
2. Is the amount on Form 1040, line 34, more than the amount
shown below for your filing status?
Step 3.
Answer the questions on this page to see if you may
use the worksheet on page 37 to figure your credit or
Married filing jointly $110,000
if you must use Pub. 972, Child Tax Credit. If you
need Pub. 972, see page 7.
Single, head of household, or qualifying widow(er)
$75,000
Married filing separately $55,000
You
STOP
Will
1040
No. Continue
Yes.
You must use Pub. 972 to
Need:
figure your credit instead
of the worksheet on
page 37.
3. Do you have three or more qualifying children for the child
tax credit?
No.
STOP
Yes. Continue
Use the worksheet
on page 37 to figure
your credit.
4. Are you claiming any of the following credits?
Adoption credit, Form 8839 (see the instructions for
Form 1040, line 48, on page 38)
Mortgage interest credit, Form 8396 (see the instructions
for Form 1040, line 49, on page 38)
District of Columbia first-time homebuyer credit,
Form 8859
No. Use the
Yes. You must use
worksheet on
Pub. 972 to figure your
page 37 to figure
child tax credit instead of
your child tax credit.
the worksheet on page 37.
You will also need the
form(s) listed above for
any credit(s) you are
claiming.
Need more information or forms? See page 7.
- 36 -

Form 1040--Line 47
Child Tax Credit Worksheet--Line 47
Keep for Your Records
Do not use this worksheet if you answered "Yes" to question 1, 2, or 4 on page 36.
Instead, use Pub. 972.
1.
Number of qualifying children:
$500. Enter the result.
1
2.
Enter the amount from Form 1040, line 42.
2
3.
Add the amounts from Form 1040:
Line 43
Line 44
+
Line 45
+
Line 46
+
Enter the total.
3
4.
Are the amounts on lines 2 and 3 the same?
Yes. STOP
You cannot take this credit because there is no tax
to reduce. However, see the TIP below before
completing the rest of your Form 1040.
No. Subtract line 3 from line 2.
4
5.
Is the amount on line 1 more than the amount on line 4?
Yes. Enter the amount from line 4.
See the TIP below.
This is your child tax
credit.
5
No. Enter the amount from line 1.
Enter this amount on
Form 1040, line 47.
1040
You may be able to take the additional child tax credit
on Form 1040, line 62, only if you answered "Yes" on
line 4 or line 5 above and the amount on line 1 is
$1,500 or more.
First, complete your Form 1040 through line 61.
Then, use Form 8812 to figure any additional child
tax credit.
- 37 -
Need more information or forms? See page 7.

Form 1040--Lines 48 Through 57
Line 48
Other Taxes
Line 55
Adoption Credit
Advance Earned Income
Credit Payments
You may be able to take this credit if you
Line 53
paid expenses in 2000 to adopt a child. See
Enter the total amount of advance earned
Form 8839 for details.
Social Security and
income credit (EIC) payments you received.
Medicare Tax on Tip Income
These payments are shown in box 9 of your
W-2 form(s).
Line 49
Not Reported to Employer
If you received tips of $20 or more in any
Other Credits
month and you did not report the full amount
Line 56
to your employer, you must pay the social
Include in the total on line 49 any of the
security and Medicare or railroad retirement
Household Employment
following credits and check the appropriate
(RRTA) tax on the unreported tips. You
box(es). If box d is checked, also enter the
Taxes
must also pay this tax if your W-2 form(s)
form number. To find out if you can take
shows allocated tips that you are including
If any of the following apply, see Schedule
the credit, see the form or publication indi-
in your income on Form 1040, line 7.
H and its instructions to find out if you owe
cated.
To figure the tax, use Form 4137. To pay
these taxes.
Mortgage interest credit. If a state or the RRTA tax, contact your employer. Your
1. You paid any one household employee
local government gave you a mortgage
employer will figure and collect the tax.
(defined below) cash wages of $1,200 or
credit certificate, see Form 8396.
more in 2000. Cash wages include wages
Credit for prior year minimum tax. If
You may be charged a penalty
paid by checks, money orders, etc.
you paid alternative minimum tax in a prior
equal to 50% of the social secu-
2. You withheld Federal income tax
year, see Form 8801.
rity and Medicare tax due on tips
during 2000 at the request of any household
Qualified electric vehicle credit. If you
you received but did not report
employee.
placed a new electric vehicle in service in
to your employer.
3. You paid total cash wages of $1,000
2000, see Form 8834.
or more in any calendar quarter of 1999 or
General business credit. This credit
2000 to household employees.
consists of a number of credits that usually
Line 54
apply only to individuals who are partners,
For item 1, do not count amounts
shareholders in an S corporation, self-
Tax on IRAs, Other
paid to an employee who was
employed, or who have rental property. See
Retirement Plans, and MSAs
under age 18 at any time in 2000
Form 3800 or Pub. 334.
and was a student.
Empowerment
zone
employment
If any of the following apply, see Form
credit. See Form 8844.
5329 and its instructions to find out if you
Household Employee. Any person who

owe this tax and if you must file Form 5329.
District of Columbia first-time home-
does household work is a household em-
buyer credit. See Form 8859.
1. You received any early distributions
from (a) an IRA or other qualified retire-
ployee if you can control what will be done
ment plan, (b) an annuity, or (c) a modified
and how it will be done. Household work
includes work done in or around your home
Line 50
endowment contract entered into after June
20, 1988.
by babysitters, nannies, health aides, maids,
yard workers, and similar domestic workers.
If you sold fuel produced from a noncon-
2. You made excess contributions to your
ventional source, see Internal Revenue Code
IRA or MSA.
section 29 to find out if you can take the
3. You were bor n before July 1, 1929,
nonconventional source fuel credit. If you
Line 57
and did not take the minimum required dis-
can, attach a schedule showing how you
tribution from your IRA or other qualified
figured the credit. Include the credit in the
retirement plan.
Total Tax
total on line 50. Enter the amount and "FNS"
Include in the total on line 57 any of the
on the dotted line next to line 50.
Exception. If only item 1 applies to you
following taxes. To find out if you owe the
and distribution code 1 is correctly shown
tax, see the form or publication indicated.
in box 7 of your Form 1099-R, you do not
On the dotted line next to line 57, enter the
have to file Form 5329. Instead, multiply
amount of the tax and identify it as indicat-
the taxable amount of the distribution by
ed.
10% (.10) and enter the result on line 54.
The taxable amount of the distribution is the
Recapture of the Following Credits.
part of the distribution you reported on line
Investment credit (see Form 4255).
15b or line 16b of Form 1040 or on Form
Identify as "ICR."
4972. Also, put "No" next to line 54 to
Low-income housing credit (see
indicate that you do not have to file Form
Form 8611). Identify as "LIHCR."
5329. But if distribution code 1 is incorrect-
ly shown in box 7, you must file Form 5329.
(Continued on page 39)
Need more information or forms? See page 7.
- 38 -

Form 1040--Lines 57 Through 59
Qualified electric vehicle credit (see
If you and your spouse paid joint estimat-
Pub. 535). Identify as "QEVCR."
Payments
ed tax but are now filing separate income
Indian employment credit. Identify as
tax returns, either of you can claim all of
"IECR."
the amount paid. Or you can each claim part
of it. See Pub. 505 for details on how to
Recapture of Federal Mortgage Subsidy.
Line 58
report your payments. Be sure to show both
If you sold your home in 2000 and it was
social security numbers (SSNs) in the space
financed (in whole or in part) from the pro-
Federal Income Tax
provided on the separate returns. If you or
ceeds of any tax-exempt qualified mortgage
Withheld
your spouse paid separate estimated tax but
bond or you claimed the mortgage interest
you are now filing a joint return, add the
credit, see Form 8828. Identify as "FMSR."
Add the amounts shown as Federal income
amounts you each paid. Follow these in-
tax withheld on your Forms W-2, W-2G,
structions even if your spouse died in 2000
Section 72(m)(5) Excess Benefits Tax (see
and 1099-R. Enter the total on line 58. The
or in 2001 before filing a 2000 return.
Pub. 560). Identify as "Sec. 72(m)(5)."
amount withheld should be shown in box 2
of Form W-2 or W-2G, and in box 4 of Form
Divorced Taxpayers
Uncollected Social Security and Medicare
1099-R. If line 58 includes amounts with-
If you got divorced in 2000 and you made
or RRTA Tax on Tips or Group-Term
held as shown on Form 1099-R, attach the
joint estimated tax payments with your
Life Insurance. This tax should be shown
Form 1099-R to the front of your return.
former spouse, put your former spouse's
in box 13 of your Form W-2 with codes A
If you received a 2000 Form 1099 show-
SSN in the space provided on the front of
and B or M and N. Identify as "UT."
ing Federal income tax withheld on divi-
Form 1040. If you were divorced and re-
dends,
interest
income,
unemployment
married in 2000, put your present spouse's
Golden Parachute Payments. If you re-
compensation, social security benefits, or
SSN in the space provided on the front of
ceived an excess parachute payment (EPP),
other income you received, include the
Form 1040. Also, under the heading "Pay-
you must pay a 20% tax on it. This tax
amount withheld in the total on line 58. This
ments" to the left of line 59, put your former
should be shown in box 13 of your W-2
should be shown in box 4 of the 1099 form
spouse's SSN, followed by "DIV."
form with code K. If you received a Form
or box 6 of Form SSA-1099.
1099-MISC, the tax is 20% of the EPP
Name Change
shown in box 13. Identify as "EPP."
If you changed your name because of mar-
Tax on Accumulation Distribution of
Line 59
riage, divorce, etc., and you made estimated
Trusts. Enter the amount from Form 4970
tax payments using your former name,
and identify as "ADT."
2000 Estimated Tax
attach a statement to the front of Form 1040.
Payments
On the statement, explain all the payments
you and your spouse made in 2000 and the
Enter any payments you made on your es-
name(s) and SSN(s) under which you made
timated
Federal
income
tax
(Form
them.
1040-ES) for 2000. Include any overpay-
ment from your 1999 return that you applied
to your 2000 estimated tax.
- 39 -
Need more information or forms? See page 7.

Form 1040--Lines 60a and 60b
Lines 60a and 60b--
Earned Income Credit (EIC)
Step 2
Investment Income
1. Add the amounts from
Line 8a
What Is the EIC?
Form 1040:
Line 8b +
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.
Line 9
+
Line 13 +
To Take the EIC:
Follow the steps below.
Investment Income =
Complete the worksheet that applies to you or let the IRS
figure the credit for you.
2. Is your investment income more than $2,400?
If you have a qualifying child, complete and attach
Yes. Continue
No. Skip the next
Schedule EIC.
question; go to Step 3.
3. Are you filing Form 4797 (relating to sales of business
You
W-2(s)
property)?
Will
1040
Yes. See Form 4797
No.
STOP
Need:
Filers on page 43.
You cannot take the credit.
If you take the EIC even though you are not eligible
and it is determined that your error is due to reckless
Step 3
Who Must Use Pub. 596
or intentional disregard of the EIC rules, you will not
be allowed to take the credit for 2 years even if you
Some people must use Pub. 596, Earned Income Credit, to see
are otherwise eligible to do so. If you fraudulently take the EIC,
if they can take the credit and how to figure it. To see if you
you will not be allowed to take the credit for 10 years. You may
must use Pub. 596, answer the following questions.
also have to pay penalties.
1. Are you filing Schedule E?
No. Continue
Yes.
Step 1
All Filers
2. Are you claiming a loss on
1. Is the amount on Form 1040, line 34, less than $31,152 (or
Form 1040, line 12, 13, or 18?
$10,380 if a child did not live with you in 2000)?
STOP You must
No. Continue
Yes.
Yes. Continue
No.
STOP
use Pub. 596
You cannot take the credit.
to see if you
3. Are you reporting income or a loss
from the rental of personal property
can take the
2. Do you, and your spouse if filing a joint return, have a
not used in a trade or business?
credit and
social security number that allows you to work (see
how to figure
page 43)?
No. Continue
Yes.
it.
Yes. Continue
No.
STOP
4. Did you, or your spouse if filing a
You cannot take the credit.
joint return, receive a distribution
Put "No" directly to the
from a pension, annuity, or IRA that
Pub.
right of line 60a.
is not fully taxable?
596
3. Is your filing status married filing separately?
No. Continue
Yes.
To get
Yes. STOP
No. Continue
5. Are you reporting income on Form
Pub. 596, see
You cannot take
1040, line 21, from Form 8814
the credit.
page 7.
(relating to election to report child's
interest and dividends)?
4. Are you filing Form 2555 or 2555-EZ (relating to foreign
earned income)?
No. Continue
Yes.
Yes. STOP
No. Continue
6. Did you enter an amount other than
You cannot take
zero on Form 1040, line 41?
the credit.
No. Continue
Yes.
5. Were you a nonresident alien for any part of 2000?
7. Did a child live with you in 2000?
Yes. See Nonresident
No. Go to Step 2.
Yes. Go to Step 4
No. Go to Step 5 on
Aliens on page 43.
on page 41.
page 41.
Need more information or forms? See page 7.
- 40 -

Form 1040--Lines 60a and 60b
Continued from page 40
Step 4
Qualifying Child
Step 5
Filers Without a Qualifying Child
1. Look at the qualifying child conditions in Step 4. Could
A qualifying child is a child who is your...
you, or your spouse if filing a joint return, be a qualifying
Son
Grandchild
child of another person in 2000?
Daughter
Stepchild
Yes. STOP
No. Continue
You cannot take the
Adopted child
Foster child (see page 43)
credit. Put "No"
directly to the right
If the child was married, see page 43.
of line 60a.
AND
2. Can you, or your spouse if filing a joint return, be claimed
as a dependent on someone else's 2000 tax return?
was at the end of 2000...
Yes. STOP
No. Continue
You cannot take
Under age 19
the credit.
or
3. Were you, or your spouse if filing a joint return, at least age
25 but under age 65 at the end of 2000?
Under age 24 and a student (see page 43)
Yes. Continue
No.
STOP
or
You cannot take the credit.
Any age and permanently and totally disabled (see page 43)
Put "No" directly to the
right of line 60a.
AND
4. Was your home, and your spouse's if filing a joint return, in
the United States for more than half of 2000? Members of
who...
the military stationed outside the United States, see page 43
before you answer.
Lived with you in the United States for more than half
of 2000 or, if a foster child, for all of 2000.
Yes. Go to Step 6.
No.
STOP
If the child did not live with you for the
You cannot take the credit.
required time, see Exception to "Time Lived With You"
Put "No" directly to the
Condition on page 43.
right of line 60a.
1. Look at the qualifying child conditions above. Could you, or
Step 6
Modified Adjusted Gross Income
your spouse if filing a joint return, be a qualifying child of
another person in 2000?
1. Add the amounts from
Line 8b
Yes. STOP
No. Continue
Form 1040:
You cannot take the
Line 34
+
credit. Put "No"
Modified Adjusted
Box
directly to the right
=
Gross Income
A
of line 60a.
2. Do you have at least one child who meets the above
2. If you have:
conditions to be your qualifying child?
2 or more qualifying children, is Box A less than
Yes. Continue
No. Skip the next question;
$31,152?
go to Step 5, question 2.
1 qualifying child, is Box A less than $27,413?
3. Does the child meet the conditions to be a qualifying child
No qualifying children, is Box A less than $10,380?
of any other person (other than your spouse if filing a joint
return) for 2000?
Yes. Go to Step 7
No.
STOP
Yes. See Qualifying
No. This child is your
on page 42.
You cannot take the credit.
Child of More Than
qualifying child. The child
One Person on
must have a social security
page 43.
number as defined on page
(Continued on page 42)
43 unless the child was
born and died in 2000.
Skip Step 5; go to Step 6.
- 41 -
Need more information or forms? See page 7.

Form 1040--Lines 60a and 60b
Continued from page 41
Step 7
Nontaxable and Taxable Earned
Step 8
Total Earned Income
Income
1. Nontaxable Earned Income (Step 7, Box B)
1. Add all your nontaxable earned income, including your
spouse's if filing a joint return. This includes anything of
Taxable Earned Income (Step 7, Box C) +
value (money, goods, or services) that is not taxable that
you received from your employer for your work. Types of
Total Earned Income =
Box
D
nontaxable earned income are listed below.
Salary deferrals, such as a 401(k) plan or the Federal Thrift Savings
2. If you have:
Plan, shown in box 13 of your W-2 form. See page 43.
Salary reductions, such as under a cafeteria plan, unless they are
2 or more qualifying children, is Box D less than $31,152?
included in box 1 of your W-2 form. See page 43.
1 qualifying child, is Box D less than $27,413?
Mandatory contributions to a state or local retirement plan.
No qualifying children, is Box D less than $10,380?
Military employee basic housing, subsistence, and combat zone
compensation. These amounts are shown in box 13 of your W-2
Yes. Go to Step 9.
No.
STOP
form with code Q.
You cannot take the credit.
Meals and lodging provided for the convenience of your employer.
Put "No" directly to the
Housing allowances or rental value of a parsonage for clergy
right of line 60a.
members. If filing Schedule SE, see Clergy on this page.
Excludable dependent care benefits from Form 2441, line 18,
employer-provided adoption benefits from Form 8839, line 26, and
Step 9
How To Figure the Credit
educational assistance benefits (these benefits may be shown in box
14 of your W-2 form).
1. Do you want the IRS to figure the credit for you?
Certain amounts received by Native Americans. See Pub. 596.
Yes. See Credit
No. Go to Worksheet A
Note. Nontaxable earned income does not include welfare
Figured by the IRS
on page 44.
benefits or workfare payments (see page 43), or qualified foster
below.
care payments.
Definitions and Special Rules
Nontaxable Earned Income =
Box
(listed in alphabetical order)
B
Adopted Child. Any child placed with you by an authorized
placement agency for legal adoption. An authorized placement agency
Enter the amount and type of your nontaxable
1040
includes any person authorized by state law to place children for legal
earned income on Form 1040, line 60b.
adoption. The adoption does not have to be final.
2. Are you filing Schedule SE because you had church
Church Employees. Determine how much of the amount on
employee income of $108.28 or more?
Form 1040, line 7, was also reported on Schedule SE, line 5a. Subtract
that amount from the amount on Form 1040, line 7, and enter the result
Yes. See Church
No. Continue
in the first space of Step 7, line 3. Be sure to answer "Yes" on line 4
Employees on this
of Step 7.
page.
Clergy. If you are filing Schedule SE and the amount on line 2 of that
schedule includes an amount that was also reported on Form 1040,
3. Figure taxable earned income:
line 7:
Form 1040, line 7
1. Put "Clergy" directly to the right of line 60a of Form 1040.
Subtract:
2. Do not include any housing allowance or rental value of the
Any taxable scholarship or
parsonage as nontaxable earned income in Box B if it is
fellowship grant not reported on
required to be included on Schedule SE, line 2.
a W-2 form
3. Determine how much of the amount on Form 1040, line 7, was

also reported on Schedule SE, line 2.
Any amount paid to an inmate

4. Subtract that amount from the amount on Form 1040, line 7.
in a penal institution for work
Enter the result in the first space of Step 7, line 3.
(put "PRI" and the amount
5. Be sure to answer "Yes" on line 4 of Step 7.
subtracted on the dotted line
next to line 7 of Form 1040)
Credit Figured by the IRS. To have the IRS figure the credit for
you:
Taxable Earned Income =
Box
1. Put "EIC" directly to the right of line 60a of Form 1040.
C
2. Be sure you entered the amount and the type of any nontaxable
earned income (Step 7, Box B, on this page) on Form 1040,
4. Were you self-employed, or are you filing Schedule SE
line 60b.
because you had church employee income, or are you filing
3. If you have a qualifying child, complete and attach
Schedule C or C-EZ as a statutory employee?
Schedule EIC. If your 1997, 1998, or 1999 EIC was reduced or
disallowed, see Form 8862, Who Must File, on page 43.
Yes. Skip Steps 8 and
No. Go to Step 8.
9; go to Worksheet B
on page 45.
(Continued on page 43)
Need more information or forms? See page 7.
- 42 -

Form 1040--Lines 60a and 60b
Continued from page 42
Exception to "Time Lived With You" Condition. A child is
Modified AGI is the total of the amounts on Form 1040, lines 8b
considered to have lived with you for all of 2000 if the child was born
and 34, increased by:
or died in 2000 and your home was this child's home for the entire
Any loss claimed on Form 1040, line 13,
time he or she was alive in 2000. Temporary absences, such as for
school, vacation, medical care, or detention in a juvenile facility, count
Any loss from the rental of personal property not used in a trade
as time lived at home. If you were in the military stationed outside the
or business,
United States, see Members of the Military below.
75% of any losses on Form 1040, lines 12 and 18,
Form 4797 Filers. If the amount on Form 1040, line 13, includes an
Certain nontaxable distributions from a pension, annuity, or IRA
amount from Form 4797, you must use Pub. 596 to see if you can take
(see Pub. 596), and
the EIC and how to figure it. To get Pub. 596, see page 7. Otherwise,
Certain amounts reported on Schedule E (see Pub. 596).
stop; you cannot take the EIC.
Example. You and your 5-year-old daughter moved in with your
Form 8862, Who Must File. You must file Form 8862 if your 1997,
mother in April 2000. You are not a qualifying child of your mother.
1998, or 1999 EIC was reduced or disallowed for any reason other than
Your daughter meets the conditions to be a qualifying child for both
a math or clerical error. But do not file Form 8862 if, after your EIC
you and your mother. Your modified AGI for 2000 was $8,000 and
was reduced or disallowed in an earlier year:
your mother's was $14,000. Because your mother's modified AGI was
You filed Form 8862 (or other documents) and your EIC was
higher, your daughter is your mother's qualifying child. You cannot
then allowed and
take any EIC, even if your mother does not claim the credit. You
would put "No" directly to the right of line 60a.
Your EIC has not been reduced or disallowed again for any
reason other than a math or clerical error.
Salary Deferrals. Contributions from your pay to certain retirement
Also, do not file Form 8862 or take the credit if it was determined that
plans, such as a 401(k) plan or the Federal Thrift Savings Plan, shown
your error was due to reckless or intentional disregard of the EIC rules
in box 13 of your W-2 form. The "Deferred compensation" box in box
or fraud.
15 of your W-2 form should be checked.
Foster Child. Any child you cared for as your own child and who is
Salary Reductions. Amounts you could have been paid but chose
(1) your brother, sister, stepbrother, or stepsister; (2) a descendant (such
instead to have your employer contribute to certain benefit plans, such
as a child, including an adopted child) of your brother, sister,
as a cafeteria plan. A cafeteria plan is a plan that allows you to choose
stepbrother, or stepsister; or (3) a child placed with you by an
to receive either cash or certain benefits that are not taxed (such as
authorized placement agency. For example, if you acted as the parent
accident and health insurance).
of your niece or nephew, this child is considered your foster child.
Social Security Number (SSN). For purposes of taking the EIC, an
Grandchild. Any descendant of your son, daughter, or adopted child.
SSN is a number issued by the Social Security Administration to a
For example, a grandchild includes your great-grandchild,
U.S. citizen or to a person who has permission from the Immigration
great-great-grandchild, etc.
and Naturalization Service to work in the United States. It does not
include an SSN issued only to allow a person to apply for or receive
Married Child. A child who was married at the end of 2000 is a
Federally funded benefits. If your social security card, or your spouse's
qualifying child only if (1) you can claim him or her as your dependent
if filing a joint return, says "Not valid for employment," you cannot
on Form 1040, line 6c, or (2) this child's other parent claims him or
take the EIC.
her as a dependent under the rules in Pub. 501 for children of divorced
or separated parents.
To find out how to get an SSN, see page 19. If you will not have an
SSN by April 16, 2001, see What if You Cannot File on Time? on
Members of the Military. If you were on extended active duty
page 15.
outside the United States, your home is considered to be in the United
States during that duty period. Extended active duty is military duty
Student. A child who during any 5 months of 2000:
ordered for an indefinite period or for a period of more than 90 days.
Was enrolled as a full-time student at a school or
Once you begin serving extended active duty, you are considered to be
Took a full-time, on-farm training course given by a school or a
on extended active duty even if you serve fewer than 90 days.
state, county, or local government agency.
Nonresident Aliens. If your filing status is married filing jointly, go
A school includes technical, trade, and mechanical schools. It does
to Step 2 on page 40. Otherwise, stop; you cannot take the EIC.
not include on-the-job training courses, correspondence schools, or
night schools.
Permanently and Totally Disabled Child. A child who cannot
engage in any substantial gainful activity because of a physical or
Welfare Benefits, Effect of Credit on. Any refund you receive as
mental condition and a doctor has determined that this condition:
a result of taking the EIC will not be used to determine if you are

eligible for the following programs, or how much you can receive from
Has lasted or can be expected to last continuously for at least a
them.
year or

Temporary Assistance for Needy Families (TANF).
Can lead to death.
Medicaid and supplemental security income (SSI).
Qualifying Child of More Than One Person. If the child meets
Food stamps and low-income housing.
the conditions to be a qualifying child of more than one person, only
the person who had the highest modified AGI (adjusted gross income)
Workfare Payments. Cash payments certain people receive from a
for 2000 may treat that child as a qualifying child. The other person(s)
state or local agency that administers public assistance programs funded
cannot take the EIC for people who do not have a qualifying child. If
under the Federal Temporary Assistance for Needy Families (TANF)
the other person is your spouse and you are filing a joint return, this
program in return for certain work activities such as:
rule does not apply. If you have the highest modified AGI, this child is
Work experience activities (including work associated with
your qualifying child. The child must have a social security number as
remodeling or repairing publicly assisted housing) if sufficient
defined on this page unless the child was born and died in 2000. Skip
private sector employment is not available or
Step 5; go to Step 6 on page 41. If you do not have the highest
Community service program activities.
modified AGI, stop; you cannot take the EIC. Put "No" directly to the
right of line 60a.
- 43 -
Need more information or forms? See page 7.

Form 1040--Lines 60a and 60b
Worksheet A--Earned Income Credit (EIC)--Lines 60a and 60b
Keep for Your Records
Before you begin:
Be sure you are using the correct worksheet. Do not use this worksheet if you
were self-employed, or you are filing Schedule SE because you had church
employee income, or you are filing Schedule C or C-EZ as a statutory
employee. Instead, use Worksheet B on page 45.
Part 1
1.
Enter your total earned income from Step 8,
1
Box D, on page 42.
All Filers Using
Worksheet A
2.
Look up the amount on line 1 above in the EIC Table on pages 4749
2
to find the credit. Enter the credit here.
STOP
If line 2 is zero,
You cannot take the credit.
Put "No" directly to the right of line 60a.
3.
Enter your modified adjusted gross income from
3
Step 6, Box A, on page 41.
4.
Are the amounts on lines 3 and 1 the same?
Yes. Skip line 5; enter the amount from line 2 on line 6.
No.
Go to line 5.
5.
Is the amount on line 3 less than:
Part 2
$5,800 if you do not have a qualifying child or
Filers Who
$12,700 if you have one or more qualifying children?
Answered
Yes. Leave line 5 blank; enter the amount from line 2 on line 6.
"No" on
No.
Look up the amount on line 3 in the EIC Table on
Line 4
5
pages 4749 to find the credit. Enter the credit here.
Look at the amounts on lines 5 and 2.
Then, enter the smaller amount on line 6.
Part 3
6.
This is your earned income credit.
6
Enter this amount on
Your Earned
Reminder--
Form 1040, line 60a.
Income Credit
Be sure you entered the amount and the type of any nontaxable earned
income (Step 7, Box B, on page 42) on Form 1040, line 60b.
1040
If you have a qualifying child, complete and attach Schedule EIC.
1040
EIC
If your 1997, 1998, or 1999 EIC was reduced or disallowed, see
page 43 to find out if you must file Form 8862 to take the credit
for 2000.
Need more information or forms? See page 7.
- 44 -

Form 1040--Lines 60a and 60b
Worksheet B--Earned Income Credit (EIC)--Lines 60a and 60b
Keep for Your Records
Use this worksheet if you were self-employed, or you are filing Schedule SE because you
had church employee income, or you are filing Schedule C or C-EZ as a statutory employee.
Complete the parts below (Parts 1 through 3) that apply to you. Then, continue to Part 4.
If you are married filing a joint return, include your spouse's amounts, if any, with yours to figure the
amounts to enter in Parts 1 through 3.
1a. Enter the amount from Schedule SE, Section A, line 3, or
1a
Part 1
Section B, line 3, whichever applies.
Self-Employed
+ 1b
b. Enter any amount from Schedule SE, Section B, line 4b, and line 5a.
and People
= 1c
With Church
c. Add lines 1a and 1b.
Employee
d. Enter the amount from Schedule SE, Section A, line 6, or
1d
Income Filing
Section B, line 13, whichever applies.
Schedule SE
e. Subtract line 1d from 1c.
= 1e
2.
Do not include on these lines any statutory employee income or any amount exempt from
Part 2
self-employment tax as the result of the filing and approval of Form 4029 or Form 4361.
Self-Employed
a. Enter any net farm profit from Schedule F, line 36, and from farm
2a
NOT Filing
partnerships, Schedule K-1 (Form 1065), line 15a.
Schedule SE
b. Enter any net profit from Schedule C, line 31; Schedule C-EZ, line 3;
Schedule K-1 (Form 1065), line 15a (other than farming); and
+ 2b
For example, your
Schedule K-1 (Form 1065-B), box 9.
net earnings from
self-employment
c. Add lines 2a and 2b.
= 2c
were less than $400.
Part 3
Statutory
3.
Enter the amount from Schedule C, line 1, or Schedule C-EZ, line 1, that
3
Employees
you are filing as a statutory employee.
Filing Schedule
C or C-EZ
Part 4
4a
4a. Add lines 1e, 2c, and 3.
All Filers Using
+ 4b
b. Enter your nontaxable earned income from Step 7, Box B, on page 42.
Worksheet B
+ 4c
c. Enter your taxable earned income from Step 7, Box C, on page 42.
Note. If line 4d
includes income on
which you should
d. Add lines 4a, 4b, and 4c. This is your total earned income.
= 4d
have paid self-
employment tax but
5.
If you have:
did not, we may
reduce your credit by
2 or more qualifying children, is line 4d less than $31,152?
the amount of
1 qualifying child, is line 4d less than $27,413?
self-employment tax
No qualifying children, is line 4d less than $10,380?
not paid.
Yes. If you want the IRS to figure your credit, see page 42. If you want to figure
the credit yourself, enter the amount from line 4d on line 6 (page 46).
STOP
No.
You cannot take the credit.
Put "No" directly to the right of line 60a.
(Continued on page 46)
- 45 -
Need more information or forms? See page 7.

Form 1040--Lines 60a and 60b
Worksheet B--Continued from page 45
Keep for Your Records
Part 5
6.
Enter your total earned income from Part 4, line 4d,
6
on page 45.
All Filers Using
Worksheet B
7.
Look up the amount on line 6 above in the EIC Table on pages 4749
7
to find the credit. Enter the credit here.
STOP
If line 7 is zero,
You cannot take the credit.
Put "No" directly to the right of line 60a.
8.
Enter your modified adjusted gross income from
8
Step 6, Box A, on page 41.
9.
Are the amounts on lines 8 and 6 the same?
Yes. Skip line 10; enter the amount from line 7 on line 11.
No.
Go to line 10.
10.
Is the amount on line 8 less than:
$5,800 if you do not have a qualifying child or
$12,700 if you have one or more qualifying children?
Yes. Leave line 10 blank; enter the amount from line 7 on line 11.
No.
Look up the amount on line 8 in the EIC Table on
10
pages 4749 to find the credit. Enter the credit here.
Look at the amounts on lines 10 and 7.
Then, enter the smaller amount on line 11.
Part 6
11.
This is your earned income credit.
11
Enter this amount on
Your Earned
Reminder--
Form 1040, line 60a.
Income Credit
Be sure you entered the amount and the type of any nontaxable earned
income (Step 7, Box B, on page 42) on Form 1040, line 60b.
1040
If you have a qualifying child, complete and attach Schedule EIC.
1040
EIC
If your 1997, 1998, or 1999 EIC was reduced or disallowed, see
page 43 to find out if you must file Form 8862 to take the credit
for 2000.
Need more information or forms? See page 7.
- 46 -

2000 Earned Income Credit (EIC) Table
If the amount
And you have--
you are looking
up from the
No
One
Two
This is not a tax table.
worksheet is--
children
child children
At
But less
Your credit is--
least
than
1. To find your credit, read
2. Then, read across to the
Example. If you have
down the "At least But less
4,800
4,850
353 1,641 1,930
column that includes the number
one qualifying child and
than" columns and find the line
of qualifying children you have.
the amount you are looking
4,850
4,900
353 1,658 1,950
that includes the amount you
Enter the credit from that
up from your EIC
4,900
4,950
353 1,675 1,970
were told to look up from your
column on your EIC Worksheet.
Worksheet is $4,875, you
4,950
5,000
353 1,692 1,990
EIC Worksheet.
would enter $1,658.
If the amount
And you have--
If the amount
And you have--
If the amount
And you have--
If the amount
And you have--
you are looking
you are looking
you are looking
you are looking
up from the
No
One
Two
up from the
No
One
Two
up from the
No
One
Two
up from the
No
One
Two
worksheet is--
children
child
children worksheet is--
children
child children worksheet is--
children
child children worksheet is--
children
child children
At
But less
Your credit is--
At
But less
Your credit is--
At
But less
Your credit is--
At
But less
Your credit is--
least
than
least
than
least
than
least
than
$1
$50
$2
$9
$10
2,200
2,250 170
757
890
4,400
4,450 339 1,505 1,770
6,600
6,650 287 2,253 2,650
50
100
62630
2,250
2,300 174
774
910
4,450
4,500 342 1,522 1,790
6,650
6,700 283 2,270 2,670
100
150
10
43
50
2,300
2,350 178
791
930
4,500
4,550 346 1,539 1,810
6,700
6,750 280 2,287 2,690
150
200
13
60
70
2,350
2,400 182
808
950
4,550
4,600 350 1,556 1,830
6,750
6,800 276 2,304 2,710
200
250
17
77
90
2,400
2,450 186
825
970
4,600
4,650 353 1,573 1,850
6,800
6,850 272 2,321 2,730
250
300
21
94
110
2,450
2,500 189
842
990
4,650
4,700 353 1,590 1,870
6,850
6,900 268 2,338 2,750
300
350
25
111
130
2,500
2,550 193
859 1,010
4,700
4,750 353 1,607 1,890
6,900
6,950 264 2,353 2,770
350
400
29
128
150
2,550
2,600 197
876 1,030
4,750
4,800 353 1,624 1,910
6,950
7,000 260 2,353 2,790
400
450
33
145
170
2,600
2,650 201
893 1,050
4,800
4,850 353 1,641 1,930
7,000
7,050 257 2,353 2,810
450
500
36
162
190
2,650
2,700 205
910 1,070
4,850
4,900 353 1,658 1,950
7,050
7,100 253 2,353 2,830
500
550
40
179
210
2,700
2,750 208
927 1,090
4,900
4,950 353 1,675 1,970
7,100
7,150 249 2,353 2,850
550
600
44
196
230
2,750
2,800 212
944 1,110
4,950
5,000 353 1,692 1,990
7,150
7,200 245 2,353 2,870
600
650
48
213
250
2,800
2,850 216
961 1,130
5,000
5,050 353 1,709 2,010
7,200
7,250 241 2,353 2,890
650
700
52
230
270
2,850
2,900 220
978 1,150
5,050
5,100 353 1,726 2,030
7,250
7,300 238 2,353 2,910
700
750
55
247
290
2,900
2,950 224
995 1,170
5,100
5,150 353 1,743 2,050
7,300
7,350 234 2,353 2,930
750
800
59
264
310
2,950
3,000 228 1,012 1,190
5,150
5,200 353 1,760 2,070
7,350
7,400 230 2,353 2,950
800
850
63
281
330
3,000
3,050 231 1,029 1,210
5,200
5,250 353 1,777 2,090
7,400
7,450 226 2,353 2,970
850
900
67
298
350
3,050
3,100 235 1,046 1,230
5,250
5,300 353 1,794 2,110
7,450
7,500 222 2,353 2,990
900
950
71
315
370
3,100
3,150 239 1,063 1,250
5,300
5,350 353 1,811 2,130
7,500
7,550 218 2,353 3,010
950
1,000
75
332
390
3,150
3,200 243 1,080 1,270
5,350
5,400 353 1,828 2,150
7,550
7,600 215 2,353 3,030
1,000
1,050
78
349
410
3,200
3,250 247 1,097 1,290
5,400
5,450 353 1,845 2,170
7,600
7,650 211 2,353 3,050
1,050
1,100
82
366
430
3,250
3,300 251 1,114 1,310
5,450
5,500 353 1,862 2,190
7,650
7,700 207 2,353 3,070
1,100
1,150
86
383
450
3,300
3,350 254 1,131 1,330
5,500
5,550 353 1,879 2,210
7,700
7,750 203 2,353 3,090
1,150
1,200
90
400
470
3,350
3,400 258 1,148 1,350
5,550
5,600 353 1,896 2,230
7,750
7,800 199 2,353 3,110
1,200
1,250
94
417
490
3,400
3,450 262 1,165 1,370
5,600
5,650 353 1,913 2,250
7,800
7,850 195 2,353 3,130
1,250
1,300
98
434
510
3,450
3,500 266 1,182 1,390
5,650
5,700 353 1,930 2,270
7,850
7,900 192 2,353 3,150
1,300
1,350 101
451
530
3,500
3,550 270 1,199 1,410
5,700
5,750 353 1,947 2,290
7,900
7,950 188 2,353 3,170
1,350
1,400 105
468
550
3,550
3,600 273 1,216 1,430
5,750
5,800 353 1,964 2,310
7,950
8,000 184 2,353 3,190
1,400
1,450 109
485
570
3,600
3,650 277 1,233 1,450
5,800
5,850 348 1,981 2,330
8,000
8,050 180 2,353 3,210
1,450
1,500 113
502
590
3,650
3,700 281 1,250 1,470
5,850
5,900 345 1,998 2,350
8,050
8,100 176 2,353 3,230
1,500
1,550 117
519
610
3,700
3,750 285 1,267 1,490
5,900
5,950 341 2,015 2,370
8,100
8,150 173 2,353 3,250
1,550
1,600 120
536
630
3,750
3,800 289 1,284 1,510
5,950
6,000 337 2,032 2,390
8,150
8,200 169 2,353 3,270
1,600
1,650 124
553
650
3,800
3,850 293 1,301 1,530
6,000
6,050 333 2,049 2,410
8,200
8,250 165 2,353 3,290
1,650
1,700 128
570
670
3,850
3,900 296 1,318 1,550
6,050
6,100 329 2,066 2,430
8,250
8,300 161 2,353 3,310
1,700
1,750 132
587
690
3,900
3,950 300 1,335 1,570
6,100
6,150 326 2,083 2,450
8,300
8,350 157 2,353 3,330
1,750
1,800 136
604
710
3,950
4,000 304 1,352 1,590
6,150
6,200 322 2,100 2,470
8,350
8,400 153 2,353 3,350
1,800
1,850 140
621
730
4,000
4,050 308 1,369 1,610
6,200
6,250 318 2,117 2,490
8,400
8,450 150 2,353 3,370
1,850
1,900 143
638
750
4,050
4,100 312 1,386 1,630
6,250
6,300 314 2,134 2,510
8,450
8,500 146 2,353 3,390
1,900
1,950 147
655
770
4,100
4,150 316 1,403 1,650
6,300
6,350 310 2,151 2,530
8,500
8,550 142 2,353 3,410
1,950
2,000 151
672
790
4,150
4,200 319 1,420 1,670
6,350
6,400 306 2,168 2,550
8,550
8,600 138 2,353 3,430
2,000
2,050 155
689
810
4,200
4,250 323 1,437 1,690
6,400
6,450 303 2,185 2,570
8,600
8,650 134 2,353 3,450
2,050
2,100 159
706
830
4,250
4,300 327 1,454 1,710
6,450
6,500 299 2,202 2,590
8,650
8,700 130 2,353 3,470
2,100
2,150 163
723
850
4,300
4,350 331 1,471 1,730
6,500
6,550 295 2,219 2,610
8,700
8,750 127 2,353 3,490
2,150
2,200 166
740
870
4,350
4,400 335 1,488 1,750
6,550
6,600 291 2,236 2,630
8,750
8,800 123 2,353 3,510
(Continued on page 48)
- 47 -
Need more information or forms? See page 7.

2000 Earned Income Credit (EIC) Table Continued
(Caution. This is not a tax table.)
If the amount
And you have--
If the amount
And you have--
If the amount
And you have--
If the amount
And you have--
you are looking
you are looking
you are looking
you are looking
up from the
No
One
Two
up from the
No
One
Two
up from the
No
One
Two
up from the
No
One
Two
worksheet is--
children
child
children worksheet is--
children
child children worksheet is--
children
child children worksheet is--
children
child children
At
But less
Your credit is--
At
But less
Your credit is--
At
But less
Your credit is--
At
But less
Your credit is--
least
than
least
than
least
than
least
than
8,800
8,850 119 2,353 3,530 13,850
13,900
0 2,163 3,638 16,650
16,700
0 1,716 3,049 19,450
19,500
0 1,269 2,459
8,850
8,900 115 2,353 3,550 13,900
13,950
0 2,155 3,628 16,700
16,750
0 1,708 3,038 19,500
19,550
0 1,261 2,449
8,900
8,950 111 2,353 3,570 13,950
14,000
0 2,147 3,617 16,750
16,800
0 1,700 3,028 19,550
19,600
0 1,253 2,438
8,950
9,000 107 2,353 3,590 14,000
14,050
0 2,139 3,607 16,800
16,850
0 1,692 3,017 19,600
19,650
0 1,245 2,427
9,000
9,050 104 2,353 3,610 14,050
14,100
0 2,131 3,596 16,850
16,900
0 1,684 3,007 19,650
19,700
0 1,237 2,417
9,050
9,100 100 2,353 3,630 14,100
14,150
0 2,123 3,586 16,900
16,950
0 1,676 2,996 19,700
19,750
0 1,229 2,406
9,100
9,150
96 2,353 3,650 14,150
14,200
0 2,115 3,575 16,950
17,000
0 1,668 2,986 19,750
19,800
0 1,221 2,396
9,150
9,200
92 2,353 3,670 14,200
14,250
0 2,108 3,565 17,000
17,050
0 1,660 2,975 19,800
19,850
0 1,213 2,385
9,200
9,250
88 2,353 3,690 14,250
14,300
0 2,100 3,554 17,050
17,100
0 1,652 2,965 19,850
19,900
0 1,205 2,375
9,250
9,300
85 2,353 3,710 14,300
14,350
0 2,092 3,544 17,100
17,150
0 1,644 2,954 19,900
19,950
0 1,197 2,364
9,300
9,350
81 2,353 3,730 14,350
14,400
0 2,084 3,533 17,150
17,200
0 1,636 2,943 19,950
20,000
0 1,189 2,354
9,350
9,400
77 2,353 3,750 14,400
14,450
0 2,076 3,523 17,200
17,250
0 1,628 2,933 20,000
20,050
0 1,181 2,343
9,400
9,450
73 2,353 3,770 14,450
14,500
0 2,068 3,512 17,250
17,300
0 1,620 2,922 20,050
20,100
0 1,173 2,333
9,450
9,500
69 2,353 3,790 14,500
14,550
0 2,060 3,502 17,300
17,350
0 1,612 2,912 20,100
20,150
0 1,165 2,322
9,500
9,550
65 2,353 3,810 14,550
14,600
0 2,052 3,491 17,350
17,400
0 1,604 2,901 20,150
20,200
0 1,157 2,312
9,550
9,600
62 2,353 3,830 14,600
14,650
0 2,044 3,480 17,400
17,450
0 1,596 2,891 20,200
20,250
0 1,149 2,301
9,600
9,650
58 2,353 3,850 14,650
14,700
0 2,036 3,470 17,450
17,500
0 1,588 2,880 20,250
20,300
0 1,141 2,291
9,650
9,700
54 2,353 3,870 14,700
14,750
0 2,028 3,459 17,500
17,550
0 1,580 2,870 20,300
20,350
0 1,133 2,280
9,700
9,750
50 2,353 3,888 14,750
14,800
0 2,020 3,449 17,550
17,600
0 1,572 2,859 20,350
20,400
0 1,125 2,270
9,750
9,800
46 2,353 3,888 14,800
14,850
0 2,012 3,438 17,600
17,650
0 1,564 2,849 20,400
20,450
0 1,117 2,259
9,800
9,850
42 2,353 3,888 14,850
14,900
0 2,004 3,428 17,650
17,700
0 1,556 2,838 20,450
20,500
0 1,109 2,248
9,850
9,900
39 2,353 3,888 14,900
14,950
0 1,996 3,417 17,700
17,750
0 1,548 2,828 20,500
20,550
0 1,101 2,238
9,900
9,950
35 2,353 3,888 14,950
15,000
0 1,988 3,407 17,750
17,800
0 1,540 2,817 20,550
20,600
0 1,093 2,227
9,950
10,000
31 2,353 3,888 15,000
15,050
0 1,980 3,396 17,800
17,850
0 1,532 2,807 20,600
20,650
0 1,085 2,217
10,000
10,050
27 2,353 3,888 15,050
15,100
0 1,972 3,386 17,850
17,900
0 1,524 2,796 20,650
20,700
0 1,077 2,206
10,050
10,100
23 2,353 3,888 15,100
15,150
0 1,964 3,375 17,900
17,950
0 1,516 2,786 20,700
20,750
0 1,069 2,196
10,100
10,150
20 2,353 3,888 15,150
15,200
0 1,956 3,365 17,950
18,000
0 1,508 2,775 20,750
20,800
0 1,061 2,185
10,150
10,200
16 2,353 3,888 15,200
15,250
0 1,948 3,354 18,000
18,050
0 1,500 2,764 20,800
20,850
0 1,053 2,175
10,200
10,250
12 2,353 3,888 15,250
15,300
0 1,940 3,344 18,050
18,100
0 1,492 2,754 20,850
20,900
0 1,045 2,164
10,250
10,300
8 2,353 3,888 15,300
15,350
0 1,932 3,333 18,100
18,150
0 1,484 2,743 20,900
20,950
0 1,037 2,154
10,300
10,350
4 2,353 3,888 15,350
15,400
0 1,924 3,323 18,150
18,200
0 1,476 2,733 20,950
21,000
0 1,029 2,143
10,350
10,400
* 2,353 3,888 15,400
15,450
0 1,916 3,312 18,200
18,250
0 1,468 2,722 21,000
21,050
0 1,021 2,133
10,400
12,700
0 2,353 3,888 15,450
15,500
0 1,908 3,301 18,250
18,300
0 1,460 2,712 21,050
21,100
0 1,013 2,122
12,700
12,750
0 2,347 3,881 15,500
15,550
0 1,900 3,291 18,300
18,350
0 1,452 2,701 21,100
21,150
0 1,005 2,112
12,750
12,800
0 2,339 3,870 15,550
15,600
0 1,892 3,280 18,350
18,400
0 1,444 2,691 21,150
21,200
0
997 2,101
12,800
12,850
0 2,331 3,860 15,600
15,650
0 1,884 3,270 18,400
18,450
0 1,436 2,680 21,200
21,250
0
989 2,091
12,850
12,900
0 2,323 3,849 15,650
15,700
0 1,876 3,259 18,450
18,500
0 1,428 2,670 21,250
21,300
0
981 2,080
12,900
12,950
0 2,315 3,839 15,700
15,750
0 1,868 3,249 18,500
18,550
0 1,420 2,659 21,300
21,350
0
973 2,069
12,950
13,000
0 2,307 3,828 15,750
15,800
0 1,860 3,238 18,550
18,600
0 1,412 2,649 21,350
21,400
0
965 2,059
13,000
13,050
0 2,299 3,817 15,800
15,850
0 1,852 3,228 18,600
18,650
0 1,404 2,638 21,400
21,450
0
957 2,048
13,050
13,100
0 2,291 3,807 15,850
15,900
0 1,844 3,217 18,650
18,700
0 1,396 2,628 21,450
21,500
0
949 2,038
13,100
13,150
0 2,283 3,796 15,900
15,950
0 1,836 3,207 18,700
18,750
0 1,388 2,617 21,500
21,550
0
941 2,027
13,150
13,200
0 2,275 3,786 15,950
16,000
0 1,828 3,196 18,750
18,800
0 1,380 2,606 21,550
21,600
0
933 2,017
13,200
13,250
0 2,267 3,775 16,000
16,050
0 1,820 3,186 18,800
18,850
0 1,372 2,596 21,600
21,650
0
925 2,006
13,250
13,300
0 2,259 3,765 16,050
16,100
0 1,812 3,175 18,850
18,900
0 1,364 2,585 21,650
21,700
0
917 1,996
13,300
13,350
0 2,251 3,754 16,100
16,150
0 1,804 3,165 18,900
18,950
0 1,356 2,575 21,700
21,750
0
909 1,985
13,350
13,400
0 2,243 3,744 16,150
16,200
0 1,796 3,154 18,950
19,000
0 1,348 2,564 21,750
21,800
0
901 1,975
13,400
13,450
0 2,235 3,733 16,200
16,250
0 1,788 3,144 19,000
19,050
0 1,340 2,554 21,800
21,850
0
893 1,964
13,450
13,500
0 2,227 3,723 16,250
16,300
0 1,780 3,133 19,050
19,100
0 1,332 2,543 21,850
21,900
0
885 1,954
13,500
13,550
0 2,219 3,712 16,300
16,350
0 1,772 3,122 19,100
19,150
0 1,324 2,533 21,900
21,950
0
877 1,943
13,550
13,600
0 2,211 3,702 16,350
16,400
0 1,764 3,112 19,150
19,200
0 1,316 2,522 21,950
22,000
0
869 1,933
13,600
13,650
0 2,203 3,691 16,400
16,450
0 1,756 3,101 19,200
19,250
0 1,309 2,512 22,000
22,050
0
861 1,922
13,650
13,700
0 2,195 3,681 16,450
16,500
0 1,748 3,091 19,250
19,300
0 1,301 2,501 22,050
22,100
0
853 1,912
13,700
13,750
0 2,187 3,670 16,500
16,550
0 1,740 3,080 19,300
19,350
0 1,293 2,491 22,100
22,150
0
845 1,901
13,750
13,800
0 2,179 3,659 16,550
16,600
0 1,732 3,070 19,350
19,400
0 1,285 2,480 22,150
22,200
0
837 1,890
13,800
13,850
0 2,171 3,649 16,600
16,650
0 1,724 3,059 19,400
19,450
0 1,277 2,470 22,200
22,250
0
829 1,880
*If the amount you are looking up from the worksheet is at least $10,350 but less than $10,380, your credit is $1. Otherwise, you cannot take the credit.
(Continued on page 49)
Need more information or forms? See page 7.
- 48 -

2000 Earned Income Credit (EIC) Table Continued
(Caution. This is not a tax table.)
If the amount
And you have--
If the amount
And you have--
If the amount
And you have--
If the amount
And you have--
you are looking
you are looking
you are looking
you are looking
up from the
No
One
Two
up from the
No
One
Two
up from the
No
One
Two
up from the
No
One
Two
worksheet is--
children
child
children worksheet is--
children
child children worksheet is--
children
child children worksheet is--
children
child children
At
But less
Your credit is--
At
But less
Your credit is--
At
But less
Your credit is--
At
But less
Your credit is--
least
than
least
than
least
than
least
than
22,250
22,300
0
821 1,869
24,650 24,700
0
438 1,364 27,050 27,100
0
54
859
29,450 29,500
0
0
353
22,300
22,350
0
813 1,859
24,700 24,750
0
430 1,353 27,100 27,150
0
46
848
29,500 29,550
0
0
343
22,350
22,400
0
805 1,848
24,750 24,800
0
422 1,343 27,150 27,200
0
38
837
29,550 29,600
0
0
332
22,400
22,450
0
797 1,838
24,800 24,850
0
414 1,332 27,200 27,250
0
30
827
29,600 29,650
0
0
321
22,450
22,500
0
789 1,827
24,850 24,900
0
406 1,322 27,250 27,300
0
22
816
29,650 29,700
0
0
311
22,500
22,550
0
781 1,817
24,900 24,950
0
398 1,311 27,300 27,350
0
14
806
29,700 29,750
0
0
300
22,550
22,600
0
773 1,806
24,950 25,000
0
390 1,301 27,350 27,400
0
6
795
29,750 29,800
0
0
290
22,600
22,650
0
765 1,796
25,000 25,050
0
382 1,290 27,400 27,450
0
**
785
29,800 29,850
0
0
279
22,650
22,700
0
757 1,785
25,050 25,100
0
374 1,280 27,450 27,500
0
0
774
29,850 29,900
0
0
269
22,700
22,750
0
749 1,775
25,100 25,150
0
366 1,269 27,500 27,550
0
0
764
29,900 29,950
0
0
258
22,750
22,800
0
741 1,764
25,150 25,200
0
358 1,259 27,550 27,600
0
0
753
29,950 30,000
0
0
248
22,800
22,850
0
733 1,754
25,200 25,250
0
350 1,248 27,600 27,650
0
0
743
30,000 30,050
0
0
237
22,850
22,900
0
725 1,743
25,250 25,300
0
342 1,238 27,650 27,700
0
0
732
30,050 30,100
0
0
227
22,900
22,950
0
717 1,733
25,300 25,350
0
334 1,227 27,700 27,750
0
0
722
30,100 30,150
0
0
216
22,950
23,000
0
709 1,722
25,350 25,400
0
326 1,217 27,750 27,800
0
0
711
30,150 30,200
0
0
206
23,000
23,050
0
701 1,711
25,400 25,450
0
318 1,206 27,800 27,850
0
0
701
30,200 30,250
0
0
195
23,050
23,100
0
693 1,701
25,450 25,500
0
310 1,195 27,850 27,900
0
0
690
30,250 30,300
0
0
185
23,100
23,150
0
685 1,690
25,500 25,550
0
302 1,185 27,900 27,950
0
0
680
30,300 30,350
0
0
174
23,150
23,200
0
677 1,680
25,550 25,600
0
294 1,174 27,950 28,000
0
0
669
30,350 30,400
0
0
164
23,200
23,250
0
669 1,669
25,600 25,650
0
286 1,164 28,000 28,050
0
0
658
30,400 30,450
0
0
153
23,250
23,300
0
661 1,659
25,650 25,700
0
278 1,153 28,050 28,100
0
0
648
30,450 30,500
0
0
142
23,300
23,350
0
653 1,648
25,700 25,750
0
270 1,143 28,100 28,150
0
0
637
30,500 30,550
0
0
132
23,350
23,400
0
645 1,638
25,750 25,800
0
262 1,132 28,150 28,200
0
0
627
30,550 30,600
0
0
121
23,400
23,450
0
637 1,627
25,800 25,850
0
254 1,122 28,200 28,250
0
0
616
30,600 30,650
0
0
111
23,450
23,500
0
629 1,617
25,850 25,900
0
246 1,111 28,250 28,300
0
0
606
30,650 30,700
0
0
100
23,500
23,550
0
621 1,606
25,900 25,950
0
238 1,101 28,300 28,350
0
0
595
30,700 30,750
00
90
23,550
23,600
0
613 1,596
25,950 26,000
0
230 1,090 28,350 28,400
0
0
585
30,750 30,800
00
79
23,600
23,650
0
605 1,585
26,000 26,050
0
222 1,080 28,400 28,450
0
0
574
30,800 30,850
00
69
23,650
23,700
0
597 1,575
26,050 26,100
0
214 1,069 28,450 28,500
0
0
564
30,850 30,900
00
58
23,700
23,750
0
589 1,564
26,100 26,150
0
206 1,059 28,500 28,550
0
0
553
30,900 30,950
00
48
23,750
23,800
0
581 1,553
26,150 26,200
0
198 1,048 28,550 28,600
0
0
543
30,950 31,000
00
37
23,800
23,850
0
573 1,543
26,200 26,250
0
190 1,038 28,600 28,650
0
0
532
31,000 31,050
00
27
23,850
23,900
0
565 1,532
26,250 26,300
0
182 1,027 28,650 28,700
0
0
522
31,050 31,100
00
16
23,900
23,950
0
557 1,522
26,300 26,350
0
174 1,016 28,700 28,750
0
0
511
31,100 31,150
006
23,950
24,000
0
549 1,511
26,350 26,400
0
166 1,006 28,750 28,800
0
0
500
31,150 31,152
001
24,000
24,050
0
541 1,501
26,400 26,450
0
158
995 28,800 28,850
0
0
490
31,152 or more
000
24,050
24,100
0
533 1,490
26,450 26,500
0
150
985 28,850 28,900
0
0
479
24,100
24,150
0
525 1,480
26,500 26,550
0
142
974 28,900 28,950
0
0
469
24,150
24,200
0
517 1,469
26,550 26,600
0
134
964 28,950 29,000
0
0
458
24,200
24,250
0
510 1,459
26,600 26,650
0
126
953 29,000 29,050
0
0
448
24,250
24,300
0
502 1,448
26,650 26,700
0
118
943 29,050 29,100
0
0
437
24,300
24,350
0
494 1,438
26,700 26,750
0
110
932 29,100 29,150
0
0
427
24,350
24,400
0
486 1,427
26,750 26,800
0
102
922 29,150 29,200
0
0
416
24,400
24,450
0
478 1,417
26,800 26,850
0
94
911 29,200 29,250
0
0
406
24,450
24,500
0
470 1,406
26,850 26,900
0
86
901 29,250 29,300
0
0
395
24,500
24,550
0
462 1,396
26,900 26,950
0
78
890 29,300 29,350
0
0
385
24,550
24,600
0
454 1,385
26,950 27,000
0
70
880 29,350 29,400
0
0
374
24,600
24,650
0
446 1,374
27,000 27,050
0
62
869 29,400 29,450
0
0
364
**If the amount you are looking up from the worksheet is at least $27,400 but less than $27,413, your credit is $1. Otherwise, you cannot take the credit.
- 49 -
Need more information or forms? See page 7.

Form 1040--Lines 61 Through 67d
include any amounts paid with Form 2688
Line 61
or 2350.
Lines 67b Through 67d
Excess Social Security and
Direct Deposit of Refund
RRTA Tax Withheld
Line 64
Complete lines 67b through 67d if you want
If you, or your spouse if filing a joint return,
us to directly deposit the amount shown on
Other Payments
had more than one employer for 2000 and
line 67a into your account at a bank or other
total wages of more than $76,200, too much
Check the box(es) on line 64 to report any
financial institution (such as a mutual fund,
social security tax may have been withheld.
credit from Form 2439 or 4136.
brokerage firm, or credit union) instead of
You can take a credit on this line for the
sending you a check.
amount withheld in excess of $4,724.40. But
if any one employer withheld more than
Why Use Direct Deposit?
$4,724.40, you must ask that employer to
Refund
You get your refund fast--even faster
refund the excess to you. You cannot claim
if you e-file!
it on your return. Figure this amount sepa-
Payment is more secure--there is no
rately for you and your spouse.
Line 66
check to get lost.
If you had more than one railroad em-
More convenient. No trip to the bank
ployer for 2000 and your total compensation
Amount Overpaid
to deposit your check.
was over $56,700, too much railroad retire-
ment (RRTA) tax may have been withheld.
If line 66 is under $1, we will send a refund
Saves tax dollars. A refund by direct
deposit costs less than a check.
For more details, see Pub. 505.
only on written request.
If you want to check the status of your
refund, please wait at least 4 weeks from the
You can check with your finan-
cial institution to make sure your
Line 62
date you filed your return to do so. See page
11 for details.
deposit will be accepted and to
get the correct routing and ac-
Additional Child Tax Credit
If the amount you overpaid is
count numbers. The IRS is not responsible
for a lost refund if you enter the wrong
What Is the Additional Child Tax
large, you may want to decrease
account information.
Credit?
the amount of income tax with-
held from your pay. See Income
This credit is for certain people who have
Tax Withholding and Estimated Tax Pay-
If you file a joint return and fill in lines
three or more qualifying children as defined
ments for 2001 on page 53.
67b through 67d, you are appointing your
in the instructions for line 6c, column (4),
spouse as an agent to receive the refund.
on page 20. The additional child tax credit
Refund Offset
This appointment cannot be changed later.
may give you a refund even if you do not
If you owe past-due Federal tax, state
Line 67b
owe any tax.
income tax, child support, spousal support,
The routing number must be nine digits.
Two Steps To Take the
or certain Federal nontax debts, such as stu-
The first two digits must be 01 through 12
Additional Child Tax Credit!
dent loans, all or part of the overpayment
on line 66 may be used (offset) to pay the
or 21 through 32. Otherwise, the direct de-
posit will be rejected and a check sent in-
Step 1. Be sure you figured the amount, if
past-due amount. Offsets for Federal taxes
stead. On the sample check on page 51, the
any, of your child tax credit. See the instruc-
are made by the IRS. All other offsets are
routing number is 250250025.
tions for line 47 that begin on page 36.
made by the Treasury Department's Finan-
cial Management Service (FMS). You will
Your check may state that it is payable
through a bank different from the financial
Step 2. Read the TIP at the end of your
receive a notice from FMS showing the
institution at which you have your checking
Child Tax Credit Worksheet. Use Form
amount of the offset and the agency receiv-
account. If so, do not use the routing
8812 to see if you can take the additional
ing it. To find out if you may have an offset
number on that check. Instead, contact your
child tax credit only if you meet the two
or if you have any questions about it, contact
financial institution for the correct routing
conditions given in that TIP.
the agency(ies) you owe the debt to.
number to enter on line 67b.
Injured Spouse Claim
Line 67d
Line 63
If you file a joint return and your spouse has
not paid past-due Federal tax, state income
The account number can be up to 17 char-
Amount Paid With Request
tax, child support, spousal support, or a Fed-
acters (both numbers and letters). Include
hyphens but omit spaces and special sym-
for Extension To File
eral nontax debt, such as a student loan, part
or all of the overpayment on line 66 may be
bols. Enter the number from left to right and
If you either filed Form 4868 or used direct
used (offset) to pay the past-due amount.
leave any unused boxes blank. On the
debit or your credit card to get an automatic
But your part of the overpayment may be
sample check on page 51, the account
extension of time to file Form 1040, enter
refunded to you after the offset occurs if
number is 20202086. Be sure not to include
any amount you paid with that form or by
certain conditions apply and you complete
the check number.
direct debit or credit card. If you paid by
Form 8379. For details, use TeleTax topic
(Continued on page 51)
credit card, do not include on line 63 the
203 (see page 11) or see Form 8379.
convenience fee you were charged. Also,
Need more information or forms? See page 7.
- 50 -

Form 1040--Lines 67b Through 69
Some financial institutions will
You can pay by check, money order, or
customer service number or visiting the pro-
not allow a joint refund to be
credit card. Do not include any estimated
vider's Web Site shown below. If you paid
deposited into an individual ac-
tax payment in your check, money order, or
by credit card, enter on page 1 of Form
count. If the direct deposit is re-
amount you charge. Instead, make the esti-
1040 in the upper left corner the confirma-
jected, a check will be sent instead. The IRS
mated tax payment separately.
tion number you were given at the end of
is not responsible if a financial institution
the transaction and the amount you charged
rejects a direct deposit.
To Pay by Check or Money Order. Make
(not including the convenience fee).
your check or money order payable to the
"United States Treasury" for the full
Official Payments Corporation
Line 68
amount due. Do not send cash. Do not
1-800-2PAY-TAX (1-800-272-9829)
attach the payment to your return. Write
1-877-754-4413 (Customer Service)
"2000 Form 1040" and your name, address,
www.officialpayments.com
Applied to 2001 Estimated
daytime phone number, and social security
Tax
number (SSN) on your payment. If you are
PhoneCharge, Inc.
1-888-ALLTAXX (1-888-255-8299)
Enter on line 68 the amount, if any, of the
filing a joint return, enter the SSN shown
1-877-851-9964 (Customer Service)
overpayment on line 66 you want applied to
first on your tax return.
www.About1888ALLTAXX.com
your 2001 estimated tax. We will apply this
To help us process your payment, enter
amount to your account unless you attach a
the amount on the right side of the check
You may need to (a) increase the
statement requesting us to apply it to your
like this: $ XXX.XX. Do not use dashes
amount of income tax withheld
spouse's account. Include your spouse's
or
lines
(for
example,
do
not
enter
from your pay or (b) make esti-
social security number in the attached state-
"$ XXX" or "$ XXX XX ").
100
mated tax payments for 2001.
ment. This election to apply part or all of
Then, please complete Form 1040-V fol-
See Income Tax Withholding and Esti-
the amount overpaid to your 2001 estimated
lowing the instructions on that form and
mated Tax Payments for 2001 on page 53.
tax cannot be changed later.
enclose it in the envelope with your pay-
ment. Although you do not have to use Form
What if You Cannot Pay?
1040-V, doing so allows us to process your
If you cannot pay the full amount shown on
Amount You Owe
payment more accurately and efficiently.
line 69 when you file, you may ask to make
To Pay by Credit Card. You may use your
monthly installment payments. You may
American Express Card, Discover Card,
have up to 60 months to pay. However, you
Line 69
or MasterCard card. To pay by credit card,
will be charged interest and may be charged
call toll free or access by Internet one of the
a late payment penalty on the tax not paid
Amount You Owe
service providers listed on this page and
by April 16, 2001, even if your request to
follow the instructions of the provider. A
pay in installments is granted. You must also
convenience fee will be charged by the ser-
pay a fee. To limit the interest and penalty
vice provider based on the amount you are
charges, pay as much of the tax as possible
You do not have to pay if line 69
paying. Fees may vary between the provid-
when you file. But before requesting an in-
is under $1.
ers. You will be told what the fee is during
stallment agreement, you should consider
the transaction and you will have the option
other less costly alternatives, such as a bank
Include any estimated tax penalty from line
to either continue or cancel the transaction.
loan.
70 in the amount you enter on line 69.
You can also find out what the fee will be
To ask for an installment agreement, use
by calling the provider's toll-free automated
Form 9465. You should receive a response
to your request for installments within 30
days. But if you file your return after March
Sample Check
31, it may take us longer to reply.
FRANK MAPLE
1234
KATHY MAPLE
123 Main Street
15-0000/0000
Anyplace, NJ 07000
PAY TO THE
ORDER OF
$
SAMPLE
DOLLARS
Routing
Account
ANYPLACE BANK
number
number
Do not include
Anyplace, NJ 07000
(line 67b)
(line 67d)
the check number.
For
|:250250025|:202020
.
"'86"
1234
Note. The routing and account numbers may be in different places on your check.
- 51 -
Need more information or forms? See page 7.

Form 1040--Line 70
enter the total on line 69. If you are due a
Line 70
refund, subtract the penalty from the over-
Paid Preparer
payment you show on line 66. Do not file
Estimated Tax Penalty
Form
2210
with
your
return
unless
Authorization
Form 2210 indicates that you must do so.
You must include household em-
Instead, keep it for your records.
If you want to allow the IRS to discuss your
ployment
taxes
reported
on
2000 tax return with the paid preparer who
line 56 to see if you owe the pen-
Because Form 2210 is complicat-
signed it, check the "Yes" box in the signa-
alty if line 58 is more than zero
ed, if you want to, you can leave
ture area of the return. This authorization
or you would owe the penalty even if you
line 70 blank and the IRS will
applies only to the individual whose signa-
did not include those taxes. But if you en-
figure the penalty and send you
ture appears in the "Paid Preparer's Use
tered an amount on Schedule H, line 7, in-
a bill. We will not charge you interest on
Only" section of your return. It does not
clude the total of that amount plus the
the penalty if you pay by the date specified
apply to the firm, if any, shown in that sec-
amount on Form 1040, line 56.
on the bill.
tion.
If you check the "Yes" box, you, and your
spouse if filing a joint return, are authorizing
You may owe this penalty if:
the IRS to call the paid preparer to answer
Line 69 is at least $1,000 and it is more Sign Your Return
any questions that may arise during the pro-
than 10% of the tax shown on your return
cessing of your return. You are also autho-
or
Form 1040 is not considered a valid return
rizing the paid preparer to:

unless you sign it. If you are filing a joint
You did not pay enough estimated tax
return, your spouse must also sign. If your
Give the IRS any information that is
by any of the due dates. This is true even if
spouse cannot sign the return, see Pub. 501.
missing from your return,
you are due a refund.
If you have someone prepare your return,
Call the IRS for information about the
For most people, the "tax shown on your
you are still responsible for the correctness
processing of your return or the status of
return" is the amount on line 57 minus the
of the return. If you are filing a joint return
your refund or payment(s), and
total of any amounts shown on lines 60a and
as a surviving spouse, see Death of a Tax-
Respond to certain IRS notices that you
62 and Forms 8828, 4137, 4136, and 5329
payer on page 54.
have shared with the preparer about math
(Parts III, IV, V, VI, and VII only).
errors, offsets, and return preparation. The
Child's Return
Exceptions. You will not owe the penalty
notices will not be sent to the preparer.
if your 1999 tax return was for a tax year
If your child cannot sign the return, either
You are not authorizing the paid preparer
of 12 full months and either of the follow-
parent may sign the child's name in the
to receive any refund check, bind you to
ing applies.
space provided. Then, add "By (your signa-
anything (including any additional tax lia-
ture), parent for minor child."
1. You had no tax liability for 1999 and
bility), or otherwise represent you before the
you were a U.S. citizen or resident for all
IRS. If you want to expand the paid prepar-
Daytime Phone Number
of 1999 or
er's authorization, see Pub. 947.
2. The total of lines 58, 59, and 61 on
Providing your daytime phone number may
The authorization cannot be revoked.
your 2000 return is at least as much as the
help speed the processing of your return. We
However, the authorization will automati-
tax liability shown on your 1999 return.
may have questions about items on your
cally end no later than the due date (without
Your estimated tax payments for 2000 must
return, such as the earned income credit,
regard to extensions) for filing your 2001
have been made on time and for the required
credit for child and dependent care expenses,
tax return. This is April 15, 2002, for most
amount.
etc. By answering our questions over the
people.
phone, we may be able to continue process-
If your 1999 adjusted gross
ing your return without mailing you a letter.
income was over $150,000 (over
If you are filing a joint return, you may enter
Assemble Your
$75,000 if your 2000 filing status
either your or your spouse's daytime phone
is married filing separately), item
number.
Return
2 above applies only if the total of lines 58,
Paid Preparer Must Sign Your
59, and 61 on your 2000 return is at least
Assemble any schedules and forms behind
Return
108.6% of the tax liability shown on your
Form 1040 in order of the "Attachment Se-
1999 return. This rule does not apply to
Generally, anyone you pay to prepare your
quence No." shown in the upper right corner
farmers and fishermen.
return must sign it by hand in the space
of the schedule or form. If you have sup-
provided. Signature stamps or labels cannot
porting statements, arrange them in the same
Figuring the Penalty
be used. The preparer must give you a copy
order as the schedules or forms they support
and attach them last. Do not attach corre-
If the Exceptions above do not apply and
of the return for your records. Someone who
spondence or other items unless required to
you choose to figure the penalty yourself,
prepares your return but does not charge you
do so. Attach a copy of Forms W-2, W-2G,
see Form 2210 (or 2210-F for farmers and
should not sign your return.
and 2439 to the front of Form 1040. Also
fishermen) to find out if you owe the pen-
attach Form(s) 1099-R if tax was withheld.
alty. If you do, you can use the form to
figure the amount. In certain situations, you
may be able to lower your penalty. For de-
tails, see the Instructions for Form 2210 (or
2210-F). Enter the penalty on Form 1040,
line 70. Add the penalty to any tax due and
Need more information or forms? See page 7.
- 52 -

General Information
How To Avoid
What Are Your Rights as
Do Both the Name and
Common Mistakes
a Taxpayer?
SSN on Your Tax Forms
Mistakes may delay your refund or result in
You have the right to be treated fairly, pro-
Agree With Your Social
notices being sent to you.
fessionally, promptly, and courteously by
Security Card?
1. Make sure you entered the correct name
IRS employees. Our goal at the IRS is to
If not, certain deductions and credits may
and SSN for each dependent you claim on
protect your rights so that you will have the
be reduced or disallowed, your refund may
line 6c. Also, make sure you check the box
highest confidence in the integrity, efficien-
be delayed, and you may not receive credit
in column (4) of line 6c for each dependent
cy, and fairness of our tax system. To ensure
for your social security earnings. If your
who is also a qualifying child for the child
that you always receive such treatment, you
Form W-2, Form 1099, or other tax docu-
tax credit.
should know about the many rights you have
at each step of the tax process. For details,
ment shows an incorrect SSN or name,
2. Check your math, especially for the
see Pub. 1.
notify your employer or the form-issuing
child tax credit, earned income credit, taxa-
agent as soon as possible to make sure your
ble social security benefits, total income,
earnings are credited to your social security
itemized deductions or standard deduction,
Innocent Spouse Relief
record. If the name or SSN on your social
deduction for exemptions, taxable income,
security card is incorrect, call the Social Se-
total tax, Federal income tax withheld, and
You may qualify for relief from liability for
curity Administration at 1-800-772-1213.
refund or amount you owe.
tax on a joint return if (1) there is an under-
statement of tax because your spouse omit-
3. Be sure you use the correct method to
ted income or claimed false deductions or
figure your tax. See the instructions for line
How Do You Make a Gift
credits, (2) you are divorced, separated, or
40 that begin on page 32.
no longer living with your spouse, or (3)
To Reduce the Public
4. Be sure to enter your social security
given all the facts and circumstances, it
Debt?
number (SSN) in the space provided on page
would not be fair to hold you liable for the
1 of Form 1040. If you are married filing a
If you wish to do so, make a check payable
tax. See Form 8857 or Pub. 971 for more
joint or separate return, also enter your
to "Bureau of the Public Debt." You can
details.
spouse's SSN. Be sure to enter your SSN in
send it to: Bureau of the Public Debt,
the space next to your name.
Department G, P.O. Box 2188, Parkersburg,
WV 26106-2188. Or you can enclose the
5. Make sure your name and address are
Income Tax
check with your income tax return when you
correct on the peel-off label. If not, enter the
Withholding and
file. Do not add your gift to any tax you
correct information. If you did not get a
Estimated Tax
may owe. See page 51 for details on how
peel-off
label,
enter
your
(and
your
to pay any tax you owe.
spouse's) name in the same order as shown
Payments for 2001
on your last return.
If the amount you owe or the amount you
If you itemize your deductions
6. If you are taking the standard deduction
overpaid is large, you may want to file a
for 2001, you may be able to
and you checked any box on line 35a or you
new Form W-4 with your employer to
deduct this gift.
(or your spouse if filing jointly) can be
change the amount of income tax withheld
claimed as a dependent on someone else's
from your 2001 pay. In general, you do not
2000 return, see page 31 to be sure you
have to make estimated tax payments if you
Address Change
entered the correct amount on line 36.
expect that your 2001 Form 1040 will show
If you move after you file, always notify the
7. If you received capital gain distribu-
a tax refund or a tax balance due the IRS
IRS in writing of your new address. To do
tions but were not required to file Schedule
of less than $1,000. If your total estimated
this, you can use Form 8822.
D, make sure you check the box on line 13.
tax (including any household employment
8. Remember to sign and date Form 1040
taxes or alternative minimum tax) for 2001
and enter your occupation.
is $1,000 or more, see Form 1040-ES. It
How Long Should
has a worksheet you can use to see if you
9. Attach your W-2 form(s) and other re-
Records Be Kept?
have to make estimated tax payments. For
quired forms and schedules. Put all forms
more details, see Pub. 505.
Keep a copy of your tax return, worksheets
and schedules in the proper order. See As-
you used, and records of all items appearing
semble Your Return on page 52.
on it (such as W-2 and 1099 forms) until
10. If you owe tax and are paying by
the statute of limitations runs out for that
check or money order, be sure to include all
return. Usually, this is 3 years from the date
the required information on your payment.
the return was due or filed, or 2 years from
See the instructions for line 69 on page 51
the date the tax was paid, whichever is later.
for details.
You should keep some records longer. For
- 53 -

example, keep property records (including
Claiming a Refund for a Deceased
check the IRS Web Site and click on "Elec-
those on your home) as long as they are
Taxpayer
tronic Services" for an "Authorized IRS
needed to figure the basis of the original or
If you are filing a joint return as a surviving
e-file Provider" near you.
replacement property. For more details, see
spouse, you only need to file the tax return
IRS e-file Through Your Personal Com-
Pub. 552.
to claim the refund. If you are a court-
puter. You can file your tax return in a fast,
appointed representative, file the return and
safe, convenient way through your personal
Amended Return
attach a copy of the certificate that shows
computer right from home. And now it's
your appointment. All other filers requesting
paperless! Find free filing opportunities at
File Form 1040X to change a return you
the deceased taxpayer's refund must file the
our Web Site, click on "Electronic Services"
already filed. Generally, Form 1040X must
return and attach Form 1310.
and then click on "IRS e-file Partners." For
be filed within 3 years after the date the
For more details, use TeleTax topic 356
a list of software companies that participate
original return was filed, or within 2 years
(see page 11) or see Pub. 559.
in the IRS e-file program, visit our Web Site,
after the date the tax was paid, whichever is
click on "Electronic Services" and then click
later. But you may have more time to file
on "On-Line Filing Software Companies."
Form 1040X if you are physically or men-
Depending on which software program you
tally unable to manage your financial affairs.
use to file your taxes, you will need a
See Pub. 556 for details.
modem and/or Internet access. IRS e-file
using a personal computer is available
Need a Copy of Your
24 hours a day, 7 days a week.
Tax Return?
CLICK.ZIP.FAST ROUND TRIP
IRS e-file Using a Tele-
phone. For millions of el-
If you need a copy of your tax return, use
Fast Refunds
igible taxpayers, TeleFile
Form 4506. If you have questions about
Secure
is the easiest way to file.
your account, call or write your local IRS
Your Easiest Way
To File
TeleFile allows you to file
office. If you want a printed copy of your
Accurate
your simple Federal tax return using a touch-
account, it will be mailed to you free of
Join the 40 million taxpayers who e-file!
tone phone. Only taxpayers who met the
charge.
You can file and get your refund or even
qualifications for Form 1040EZ in the prior
pay electronically. IRS e-file offers fast,
year may qualify to use TeleFile for the
Death of a Taxpayer
safe, accurate, and easy alternatives to tra-
current year. A TeleFile Tax Package is au-
ditional paper returns. There is a quick and
tomatically mailed to those who qualify.
If a taxpayer died before filing a return for
automatic IRS computer check for errors or
TeleFile is completely paperless--there are
2000, the taxpayer's spouse or personal rep-
other missing information upon receipt of
no forms to mail. Just complete the TeleFile
resentative may have to file and sign a return
the tax return information. This year, more
Tax Record in the booklet, pick up a tele-
for that taxpayer. A personal representative
forms and schedules can be e-filed--even
phone, and call the toll-free number any time
can be an executor, administrator, or anyone
those with a foreign address! The chance of
day or night. TeleFile usually takes about
who is in charge of the deceased taxpayer's
an audit of an e-filed tax return is no greater
10 minutes and it's absolutely FREE. Par-
property. If the deceased taxpayer did not
than a paper tax return. Millions of taxpayers
ents: If your children receive a TeleFile
have to file a return but had tax withheld, a
just like you filed their tax returns electron-
Tax Package, please encourage them to
return must be filed to get a refund. The
ically using an IRS e-file option because of
use TeleFile.
person who files the return should enter
the many benefits:
IRS e-file Through Employers and Finan-
"DECEASED," the deceased taxpayer's
FREE Filing!
cial Institutions. Some businesses offer free
name, and the date of death across the top
Fast Refunds!
e-file to their employees, members, or cus-
of the return.
Security!
tomers. Others offer it for a fee. Ask your
If your spouse died in 2000 and you did
employer or financial institution if they offer
not remarry in 2000, you can file a joint
Accuracy!
IRS e-file as an employee, member, or cus-
return. You can also file a joint return if
NEW Paperless Filing!
tomer benefit.
your spouse died in 2001 before filing a
Proof of Acceptance!
return for 2000. A joint return should show

Visit a VITA or TCE Site. Volunteer
Electronic Payments!
your spouse's 2000 income before death and
Income Tax Assistance (VITA) and Tax

your income for all of 2000. Enter "Filing
File Federal and State Tax Returns
Counseling for the Elderly (TCE) sites are
as surviving spouse" in the area where you
Together!
open to low-income individuals, others who
sign the return. If someone else is the per-
Here's How You Can Participate in
need help with their tax returns, and the
sonal representative, he or she must also
IRS e-file
elderly. Both programs are free and can be
sign.
found in community locations such as li-
braries, colleges, universities, shopping
The surviving spouse or personal repre-
Use an Authorized IRS
malls, and retirement and senior centers.
sentative should promptly notify all payers
e-file Provider. Many tax
Find the closest VITA or TCE site by calling
of income, including financial institutions,
professionals file tax re-
1-800-829-1040. Remember to take your,
of the taxpayer's death. This will ensure the
turns
electronically
for
your spouse's, and your dependent's social
proper reporting of income earned by the
their clients. Ask for IRS
security card and other identifying docu-
taxpayer's estate or heirs. A deceased tax-
e-file. You can prepare
ments. Ask for IRS e-file at these sites.
payer's social security number should not
your own return and have a professional
be used for tax years after the year of death,
electronically transmit it to the IRS or you
More About IRS e-file Benefits
except for estate tax return purposes.
can have your return prepared and transmit-
ted by a tax professional. Depending on the
Get
a
Fast
Refund.
Choose
Direct
tax professional and the specific services
Deposit--a fast, simple, safe, secure way to
requested, a fee may be charged. Look for
have your Federal income tax refund depos-
the "Authorized IRS e-file Provider" sign or
ited automatically into your checking or sav-
- 54 -

ings account. To choose Direct Deposit,
Form 1040PC Is History! The IRS no
taxpayers indicate on the refund portion of
longer accepts the Form 1040PC format. If
Interest and Penalties
the electronic return, the financial institu-
you used Form 1040PC in the past, the IRS
tion's routing number, the account number,
encourages you to file using the fastest, most
You do not have to figure the
and the type of account--either checking or
accurate way to file--IRS e-file!
amount of any interest or penal-
savings. Taxpayers who file electronically
ties you may owe. Because fig-
and choose Direct Deposit receive their re-
uring these amounts can be com-
funds in less than half the time that paper
Other Ways To Get Help
plicated, we will do it for you if you want.
filers do!
Send Your Written Tax Questions to the
We will send you a bill for any amount due.
Paperless Filing. Paperless filing is avail-
IRS. You should get an answer in about 30
If you include interest or penalties (other
able to most taxpayers who file electroni-
days. If you do not have the address, call
than the estimated tax penalty) with your
cally using tax preparation software or file
us. See page 13 for the number. Do not send
payment, identify and enter the amount in
through a tax professional. The process in-
questions with your return.
the bottom margin of Form 1040, page 2.
cludes self-selecting a five-digit Personal
Assistance With Your Return. IRS offices
Please do not include interest or penalties
Identification Number (PIN) and entering
can help you prepare your return. An assister
(other than the estimated tax penalty) in the
two pieces of information from your 1999
will explain a Form 1040EZ, 1040A, or
amount you owe on line 69.
tax return. If you don't have your 1999
1040 with Schedules A and B to you and
return, call the IRS (see page 13) to get a
Interest
other taxpayers in a group setting. You may
free transcript of your account. It may take
also be able to file your return electronically
We will charge you interest on taxes not
7 to 10 days to receive the transcript. Pa-
by computer free of charge at some IRS
paid by their due date, even if an extension
perless filing is also available for first-time
offices. To find the IRS office nearest you,
of time to file is granted. We will also charge
filers who were 16 or older on December
look in the phone book under "United States
you interest on penalties imposed for failure
31, 2000. There's nothing to sign and noth-
Government, Internal Revenue Service" or
to file, negligence, fraud, substantial valua-
ing to mail; not even your W-2s.
call us. See page 13 for the number.
tion misstatements, and substantial under-
Electronic Payment Options. If you have
statements of tax. Interest is charged on the
VITA and TCE. These programs help
a balance due, you can make your payment
penalty from the due date of the return (in-
older, disabled, low-income, and non-
electronically.
cluding extensions).
English-speaking people fill in their returns.
Direct Debit. You can file and pay in a
For details, call us. See page 13 for the
Penalties
single step by authorizing a direct debit (au-
number. If you received a Federal income
Late Filing. If you do not file your return
tomatic withdrawal) payment from your
tax package in the mail, take it with you
by the due date (including extensions), the
checking or savings account. This option is
when you go for help. Also take a copy of
penalty is usually 5% of the amount due for
available through tax software packages, tax
your 1999 tax return if you have it. Or to
each month or part of a month your return
professionals, and TeleFile. If you select the
find the nearest AARP Tax-Aide site, visit
is late, unless you have a reasonable expla-
direct debit payment option, you will be
AARP's Web Site at www.aarp.org/taxaide
nation. If you do, attach it to your return.
prompted to enter your account number,
or call 1-877-227-7844.
The penalty can be as much as 25% (more
your financial institution's routing number,
in some cases) of the tax due. If your return
On-Line Services. If you subscribe to an
and account type (checking or savings). You
is more than 60 days late, the minimum
on-line service, ask about on-line filing or
can schedule the payment for a future date
penalty will be $100 or the amount of any
tax information.
up to and including the tax return due date
tax you owe, whichever is smaller.
(April 16, 2001). Check with your financial
Large-Print
Forms
and
Instructions.
Late Payment of Tax. If you pay your taxes
institution to make sure that an automatic
Pub. 1614 has large-print copies of Form
late, the penalty is usually 1/2 of 1% of the
withdrawal is allowed and to get the correct
1040, Schedules A, B, D, E, EIC, and R,
unpaid amount for each month or part of a
routing and account numbers.
and Form 1040-V, and their instructions.
month the tax is not paid. The penalty can
Credit Card. You can also file and pay
You can use the large-print forms and sched-
be as much as 25% of the unpaid amount.
in a single step by authorizing a credit card
ules as worksheets to figure your tax, but
It applies to any unpaid tax on the return.
payment. This option is available through
you cannot file on them. You can get Pub.
This penalty is in addition to interest charges
some tax software packages and tax profes-
1614 by phone or mail. See pages 7 and 57.
on late payments.
sionals. Two other ways to pay by credit
Help for People With Disabilities. Tele-
Frivolous Return. In addition to any other
card are by phone or Internet (see page 51,
phone help is available using TTY/TDD
penalties, the law imposes a penalty of $500
"Amount You Owe" for details). Service
equipment. See page 13 for the number.
for filing a frivolous return. A frivolous
providers charge a convenience fee for credit
Braille materials are available at libraries
return is one that does not contain informa-
card payments.
that have special services for people with
tion needed to figure the correct tax or shows
File Federal and State Tax Returns To-
disabilities.
a substantially incorrect tax because you
gether. File Federal and state tax returns
take a frivolous position or desire to delay
together using e-file and double the benefits
or interfere with the tax laws. This includes
of e-file! The tax preparation software auto-
altering or striking out the preprinted lan-
matically transfers relevant data from the
guage above the space where you sign.
Federal return to the state return as the in-
Other. Other penalties can be imposed for
formation is entered. All states that have
negligence, substantial understatement of
income taxes support e-file. Most states
tax, and fraud. Criminal penalties may be
offer the same benefits that IRS e-file offers.
imposed for willful failure to file, tax eva-
Check the IRS Web Site for a list of com-
sion, or making a false statement. See Pub.
panies that provide state on-line filing soft-
17 for details on some of these penalties.
ware.
- 55 -

Disclosure, Privacy Act, and Paperwork Reduction Act Notice
The IRS Restructuring and Reform Act of 1998,
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information to Committees of Congress; Federal,
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material in the administration of any Internal Rev-
other Federal agencies for the purposes of deter-
for information we must first tell you our legal
enue law.
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We ask for tax return information to carry out
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Please keep this notice with your records. It
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This notice applies to all papers you file with
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Your Return
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We Welcome Comments on Forms
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you. But you do not have to check the boxes for
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You are not required to provide the informa-
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Estimated Preparation Time
The time needed to complete and file Form 1040, its schedules, and accompanying worksheets will vary depending on individual circumstances.
The estimated average times are:
Copying,
Learning
assembling,
about
and sending
the law or
Preparing
the form
Form
Recordkeeping
the form
the form
to the IRS
Totals
Form 1040
2 hr., 45 min.
3 hr., 25 min.
6 hr., 16 min.
35 min.
13 hr., 1 min.
Sch. A
3 hr., 4 min.
39 min.
1 hr., 34 min.
20 min.
5 hr., 37 min.
Sch. B
33 min.
8 min.
25 min.
20 min.
1 hr., 26 min.
Sch. C
6 hr., 2 min.
1 hr., 21 min.
2 hr., 19 min.
41 min.
10 hr., 23 min.
Sch. C-EZ
45 min.
3 min.
35 min.
20 min.
1 hr., 43 min.
Sch. D
1 hr., 30 min.
3 hr., 4 min.
1 hr., 50 min.
34 min.
6 hr., 58 min.
Sch. D-1
13 min.
1 min.
11 min.
34 min.
59 min.
Sch. E
3 hr., 3 min.
1 hr., 1 min.
1 hr., 25 min.
34 min.
6 hr., 3 min.
Sch. EIC
- - - - -
1 min.
13 min.
20 min.
34 min.
Sch. F:
Cash Method
3 hr., 29 min.
36 min.
1 hr., 27 min.
20 min.
5 hr., 52 min.
Accrual Method
3 hr., 36 min.
26 min.
1 hr., 25 min.
20 min.
5 hr., 47 min.
Sch. H
1 hr., 38 min.
30 min.
53 min.
34 min.
3 hr., 35 min.
Sch. J
19 min.
10 min.
1 hr., 11 min.
20 min.
2 hr.
Sch. R
19 min.
15 min.
30 min.
34 min.
1 hr., 38 min.
Sch. SE:
Short
13 min.
14 min.
12 min.
13 min.
52 min.
Long
26 min.
20 min.
33 min.
20 min.
1 hr., 39 min.
- 56 -

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See pages 8 through 10 for the titles of the forms and publications. We will mail you two
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please order only the items you need to prepare your return.
Publications
For faster ways of getting the items you need, such as by computer or
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Print or type your name and address accu-
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Circle the forms and
Schedule F
Schedule 3
publications you need. The
1040
2441
8812
Pub. 463
Pub. 527
Pub. 910
(1040)
(1040A)
instructions for any form
you order will be included.
Schedules A&B
Schedule H
1040EZ
3903
8822
Pub. 501
Pub. 529
Pub. 926
(1040)
(1040)
Schedule C
Schedule J
1040-ES
4562
8829
Pub. 502
Pub. 535
Pub. 929
(1040)
(1040)
(2001)
Schedule
Schedule R
1040-V
4868
8863
Pub. 505
Pub. 550
Pub. 936
C-EZ (1040)
(1040)
Schedule D
Schedule SE
1040X
5329
9465
Pub. 508
Pub. 554
Pub. 970
(1040)
(1040)
Schedule D-1
1040A
2106
8283
Pub. 1
Pub. 521
Pub. 575
Pub. 972
(1040)
Schedule E
Schedule 1
2106-EZ
8582
Pub. 17
Pub. 523
Pub. 590
(1040)
(1040A)
Schedule EIC
Schedule 2
2210
8606
Pub. 334
Pub. 525
Pub. 596
(1040A or 1040)
(1040A)
N
- 57 -

2000
Use if your taxable income is less than $100,000.
Sample Table
If $100,000 or more, use the Tax Rate Schedules.
At
But
Single
Married Married Head
Example. Mr. and Mrs. Brown are filing a joint return. Their
Tax
least
less
filing
filing
of a
taxable income on line 39 of Form 1040 is $25,300. First,
than
jointly
sepa-
house-
they find the $25,30025,350 income line. Next, they find
*
rately
hold
Table
the column for married filing jointly and read down the
Your tax is--
column. The amount shown where the income line and filing
25,200 25,250 3,784
3,784
4,213 3,784
status column meet is $3,799. This is the tax amount they
25,250 25,300 3,791
3,791
4,227 3,791
should enter on line 40 of their Form 1040.
25,300 25,350 3,799
3,799
4,241 3,799
25,350 25,400 3,806
3,806
4,255 3,806
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married Head
At
But
Single
Married Married Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
05
00
0
0
1,300
1,325
197
197
197
197
2,700
2,725
407
407
407
407
515
22
2
2
1,325
1,350
201
201
201
201
2,725
2,750
411
411
411
411
15
25
33
3
3
1,350
1,375
204
204
204
204
2,750
2,775
414
414
414
414
25
50
66
6
6
1,375
1,400
208
208
208
208
2,775
2,800
418
418
418
418
50
75
99
9
9
1,400
1,425
212
212
212
212
2,800
2,825
422
422
422
422
75
100
13
13
13
13
1,425
1,450
216
216
216
216
2,825
2,850
426
426
426
426
1,450
1,475
219
219
219
219
2,850
2,875
429
429
429
429
100
125
17
17
17
17
1,475
1,500
223
223
223
223
2,875
2,900
433
433
433
433
125
150
21
21
21
21
150
175
24
24
24
24
1,500
1,525
227
227
227
227
2,900
2,925
437
437
437
437
175
200
28
28
28
28
1,525
1,550
231
231
231
231
2,925
2,950
441
441
441
441
1,550
1,575
234
234
234
234
2,950
2,975
444
444
444
444
200
225
32
32
32
32
1,575
1,600
238
238
238
238
2,975
3,000
448
448
448
448
225
250
36
36
36
36
250
275
39
39
39
39
1,600
1,625
242
242
242
242
1,625
1,650
246
246
246
246
3,000
275
300
43
43
43
43
1,650
1,675
249
249
249
249
300
325
47
47
47
47
1,675
1,700
253
253
253
253
3,000
3,050
454
454
454
454
325
350
51
51
51
51
3,050
3,100
461
461
461
461
1,700
1,725
257
257
257
257
350
375
54
54
54
54
3,100
3,150
469
469
469
469
1,725
1,750
261
261
261
261
375
400
58
58
58
58
3,150
3,200
476
476
476
476
1,750
1,775
264
264
264
264
400
425
62
62
62
62
1,775
1,800
268
268
268
268
3,200
3,250
484
484
484
484
425
450
66
66
66
66
1,800
1,825
272
272
272
272
3,250
3,300
491
491
491
491
450
475
69
69
69
69
1,825
1,850
276
276
276
276
3,300
3,350
499
499
499
499
475
500
73
73
73
73
1,850
1,875
279
279
279
279
3,350
3,400
506
506
506
506
500
525
77
77
77
77
1,875
1,900
283
283
283
283
3,400
3,450
514
514
514
514
525
550
81
81
81
81
1,900
1,925
287
287
287
287
3,450
3,500
521
521
521
521
550
575
84
84
84
84
1,925
1,950
291
291
291
291
3,500
3,550
529
529
529
529
575
600
88
88
88
88
1,950
1,975
294
294
294
294
3,550
3,600
536
536
536
536
600
625
92
92
92
92
1,975
2,000
298
298
298
298
3,600
3,650
544
544
544
544
625
650
96
96
96
96
3,650
3,700
551
551
551
551
650
675
99
99
99
99
2,000
3,700
3,750
559
559
559
559
675
700
103
103
103
103
3,750
3,800
566
566
566
566
2,000
2,025
302
302
302
302
700
725
107
107
107
107
3,800
3,850
574
574
574
574
2,025
2,050
306
306
306
306
725
750
111
111
111
111
3,850
3,900
581
581
581
581
2,050
2,075
309
309
309
309
750
775
114
114
114
114
3,900
3,950
589
589
589
589
2,075
2,100
313
313
313
313
775
800
118
118
118
118
3,950
4,000
596
596
596
596
2,100
2,125
317
317
317
317
800
825
122
122
122
122
2,125
2,150
321
321
321
321
4,000
825
850
126
126
126
126
2,150
2,175
324
324
324
324
850
875
129
129
129
129
2,175
2,200
328
328
328
328
4,000
4,050
604
604
604
604
875
900
133
133
133
133
4,050
4,100
611
611
611
611
2,200
2,225
332
332
332
332
900
925
137
137
137
137
4,100
4,150
619
619
619
619
2,225
2,250
336
336
336
336
925
950
141
141
141
141
4,150
4,200
626
626
626
626
2,250
2,275
339
339
339
339
950
975
144
144
144
144
2,275
2,300
343
343
343
343
4,200
4,250
634
634
634
634
975
1,000
148
148
148
148
4,250
4,300
641
641
641
641
2,300
2,325
347
347
347
347
4,300
4,350
649
649
649
649
2,325
2,350
351
351
351
351
1,000
4,350
4,400
656
656
656
656
2,350
2,375
354
354
354
354
2,375
2,400
358
358
358
358
4,400
4,450
664
664
664
664
1,000
1,025
152
152
152
152
4,450
4,500
671
671
671
671
2,400
2,425
362
362
362
362
1,025
1,050
156
156
156
156
4,500
4,550
679
679
679
679
2,425
2,450
366
366
366
366
1,050
1,075
159
159
159
159
4,550
4,600
686
686
686
686
2,450
2,475
369
369
369
369
1,075
1,100
163
163
163
163
2,475
2,500
373
373
373
373
4,600
4,650
694
694
694
694
1,100
1,125
167
167
167
167
4,650
4,700
701
701
701
701
2,500
2,525
377
377
377
377
1,125
1,150
171
171
171
171
4,700
4,750
709
709
709
709
2,525
2,550
381
381
381
381
1,150
1,175
174
174
174
174
4,750
4,800
716
716
716
716
2,550
2,575
384
384
384
384
1,175
1,200
178
178
178
178
2,575
2,600
388
388
388
388
4,800
4,850
724
724
724
724
4,850
4,900
731
731
731
731
1,200
1,225
182
182
182
182
2,600
2,625
392
392
392
392
4,900
4,950
739
739
739
739
1,225
1,250
186
186
186
186
2,625
2,650
396
396
396
396
4,950
5,000
746
746
746
746
1,250
1,275
189
189
189
189
2,650
2,675
399
399
399
399
1,275
1,300
193
193
193
193
2,675
2,700
403
403
403
403
(Continued on page 60)
* This column must also be used by a qualifying widow(er).
-59-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
5,000
8,000
11,000
5,000
5,050
754
754
754
754
8,000
8,050
1,204
1,204
1,204
1,204
11,000 11,050
1,654
1,654
1,654
1,654
5,050
5,100
761
761
761
761
8,050
8,100
1,211
1,211
1,211
1,211
11,050 11,100
1,661
1,661
1,661
1,661
5,100
5,150
769
769
769
769
8,100
8,150
1,219
1,219
1,219
1,219
11,100 11,150
1,669
1,669
1,669
1,669
5,150
5,200
776
776
776
776
8,150
8,200
1,226
1,226
1,226
1,226
11,150 11,200
1,676
1,676
1,676
1,676
5,200
5,250
784
784
784
784
8,200
8,250
1,234
1,234
1,234
1,234
11,200 11,250
1,684
1,684
1,684
1,684
5,250
5,300
791
791
791
791
8,250
8,300
1,241
1,241
1,241
1,241
11,250 11,300
1,691
1,691
1,691
1,691
5,300
5,350
799
799
799
799
8,300
8,350
1,249
1,249
1,249
1,249
11,300 11,350
1,699
1,699
1,699
1,699
5,350
5,400
806
806
806
806
8,350
8,400
1,256
1,256
1,256
1,256
11,350 11,400
1,706
1,706
1,706
1,706
5,400
5,450
814
814
814
814
8,400
8,450
1,264
1,264
1,264
1,264
11,400 11,450
1,714
1,714
1,714
1,714
5,450
5,500
821
821
821
821
8,450
8,500
1,271
1,271
1,271
1,271
11,450 11,500
1,721
1,721
1,721
1,721
5,500
5,550
829
829
829
829
8,500
8,550
1,279
1,279
1,279
1,279
11,500 11,550
1,729
1,729
1,729
1,729
5,550
5,600
836
836
836
836
8,550
8,600
1,286
1,286
1,286
1,286
11,550 11,600
1,736
1,736
1,736
1,736
5,600
5,650
844
844
844
844
8,600
8,650
1,294
1,294
1,294
1,294
11,600 11,650
1,744
1,744
1,744
1,744
5,650
5,700
851
851
851
851
8,650
8,700
1,301
1,301
1,301
1,301
11,650 11,700
1,751
1,751
1,751
1,751
5,700
5,750
859
859
859
859
8,700
8,750
1,309
1,309
1,309
1,309
11,700 11,750
1,759
1,759
1,759
1,759
5,750
5,800
866
866
866
866
8,750
8,800
1,316
1,316
1,316
1,316
11,750 11,800
1,766
1,766
1,766
1,766
5,800
5,850
874
874
874
874
8,800
8,850
1,324
1,324
1,324
1,324
11,800 11,850
1,774
1,774
1,774
1,774
5,850
5,900
881
881
881
881
8,850
8,900
1,331
1,331
1,331
1,331
11,850 11,900
1,781
1,781
1,781
1,781
5,900
5,950
889
889
889
889
8,900
8,950
1,339
1,339
1,339
1,339
11,900 11,950
1,789
1,789
1,789
1,789
5,950
6,000
896
896
896
896
8,950
9,000
1,346
1,346
1,346
1,346
11,950 12,000
1,796
1,796
1,796
1,796
6,000
9,000
12,000
6,000
6,050
904
904
904
904
9,000
9,050
1,354
1,354
1,354
1,354
12,000 12,050
1,804
1,804
1,804
1,804
6,050
6,100
911
911
911
911
9,050
9,100
1,361
1,361
1,361
1,361
12,050 12,100
1,811
1,811
1,811
1,811
6,100
6,150
919
919
919
919
9,100
9,150
1,369
1,369
1,369
1,369
12,100 12,150
1,819
1,819
1,819
1,819
6,150
6,200
926
926
926
926
9,150
9,200
1,376
1,376
1,376
1,376
12,150 12,200
1,826
1,826
1,826
1,826
6,200
6,250
934
934
934
934
9,200
9,250
1,384
1,384
1,384
1,384
12,200 12,250
1,834
1,834
1,834
1,834
6,250
6,300
941
941
941
941
9,250
9,300
1,391
1,391
1,391
1,391
12,250 12,300
1,841
1,841
1,841
1,841
6,300
6,350
949
949
949
949
9,300
9,350
1,399
1,399
1,399
1,399
12,300 12,350
1,849
1,849
1,849
1,849
6,350
6,400
956
956
956
956
9,350
9,400
1,406
1,406
1,406
1,406
12,350 12,400
1,856
1,856
1,856
1,856
6,400
6,450
964
964
964
964
9,400
9,450
1,414
1,414
1,414
1,414
12,400 12,450
1,864
1,864
1,864
1,864
6,450
6,500
971
971
971
971
9,450
9,500
1,421
1,421
1,421
1,421
12,450 12,500
1,871
1,871
1,871
1,871
6,500
6,550
979
979
979
979
9,500
9,550
1,429
1,429
1,429
1,429
12,500 12,550
1,879
1,879
1,879
1,879
6,550
6,600
986
986
986
986
9,550
9,600
1,436
1,436
1,436
1,436
12,550 12,600
1,886
1,886
1,886
1,886
6,600
6,650
994
994
994
994
9,600
9,650
1,444
1,444
1,444
1,444
12,600 12,650
1,894
1,894
1,894
1,894
6,650
6,700
1,001
1,001
1,001
1,001
9,650
9,700
1,451
1,451
1,451
1,451
12,650 12,700
1,901
1,901
1,901
1,901
6,700
6,750
1,009
1,009
1,009
1,009
9,700
9,750
1,459
1,459
1,459
1,459
12,700 12,750
1,909
1,909
1,909
1,909
6,750
6,800
1,016
1,016
1,016
1,016
9,750
9,800
1,466
1,466
1,466
1,466
12,750 12,800
1,916
1,916
1,916
1,916
6,800
6,850
1,024
1,024
1,024
1,024
9,800
9,850
1,474
1,474
1,474
1,474
12,800 12,850
1,924
1,924
1,924
1,924
6,850
6,900
1,031
1,031
1,031
1,031
9,850
9,900
1,481
1,481
1,481
1,481
12,850 12,900
1,931
1,931
1,931
1,931
6,900
6,950
1,039
1,039
1,039
1,039
9,900
9,950
1,489
1,489
1,489
1,489
12,900 12,950
1,939
1,939
1,939
1,939
6,950
7,000
1,046
1,046
1,046
1,046
9,950 10,000
1,496
1,496
1,496
1,496
12,950 13,000
1,946
1,946
1,946
1,946
7,000
10,000
13,000
7,000
7,050
1,054
1,054
1,054
1,054
10,000 10,050
1,504
1,504
1,504
1,504
13,000 13,050
1,954
1,954
1,954
1,954
7,050
7,100
1,061
1,061
1,061
1,061
10,050 10,100
1,511
1,511
1,511
1,511
13,050 13,100
1,961
1,961
1,961
1,961
7,100
7,150
1,069
1,069
1,069
1,069
10,100 10,150
1,519
1,519
1,519
1,519
13,100 13,150
1,969
1,969
1,969
1,969
7,150
7,200
1,076
1,076
1,076
1,076
10,150 10,200
1,526
1,526
1,526
1,526
13,150 13,200
1,976
1,976
1,976
1,976
7,200
7,250
1,084
1,084
1,084
1,084
10,200 10,250
1,534
1,534
1,534
1,534
13,200 13,250
1,984
1,984
1,984
1,984
7,250
7,300
1,091
1,091
1,091
1,091
10,250 10,300
1,541
1,541
1,541
1,541
13,250 13,300
1,991
1,991
1,991
1,991
7,300
7,350
1,099
1,099
1,099
1,099
10,300 10,350
1,549
1,549
1,549
1,549
13,300 13,350
1,999
1,999
1,999
1,999
7,350
7,400
1,106
1,106
1,106
1,106
10,350 10,400
1,556
1,556
1,556
1,556
13,350 13,400
2,006
2,006
2,006
2,006
7,400
7,450
1,114
1,114
1,114
1,114
10,400 10,450
1,564
1,564
1,564
1,564
13,400 13,450
2,014
2,014
2,014
2,014
7,450
7,500
1,121
1,121
1,121
1,121
10,450 10,500
1,571
1,571
1,571
1,571
13,450 13,500
2,021
2,021
2,021
2,021
7,500
7,550
1,129
1,129
1,129
1,129
10,500 10,550
1,579
1,579
1,579
1,579
13,500 13,550
2,029
2,029
2,029
2,029
7,550
7,600
1,136
1,136
1,136
1,136
10,550 10,600
1,586
1,586
1,586
1,586
13,550 13,600
2,036
2,036
2,036
2,036
7,600
7,650
1,144
1,144
1,144
1,144
10,600 10,650
1,594
1,594
1,594
1,594
13,600 13,650
2,044
2,044
2,044
2,044
7,650
7,700
1,151
1,151
1,151
1,151
10,650 10,700
1,601
1,601
1,601
1,601
13,650 13,700
2,051
2,051
2,051
2,051
7,700
7,750
1,159
1,159
1,159
1,159
10,700 10,750
1,609
1,609
1,609
1,609
13,700 13,750
2,059
2,059
2,059
2,059
7,750
7,800
1,166
1,166
1,166
1,166
10,750 10,800
1,616
1,616
1,616
1,616
13,750 13,800
2,066
2,066
2,066
2,066
7,800
7,850
1,174
1,174
1,174
1,174
10,800 10,850
1,624
1,624
1,624
1,624
13,800 13,850
2,074
2,074
2,074
2,074
7,850
7,900
1,181
1,181
1,181
1,181
10,850 10,900
1,631
1,631
1,631
1,631
13,850 13,900
2,081
2,081
2,081
2,081
7,900
7,950
1,189
1,189
1,189
1,189
10,900 10,950
1,639
1,639
1,639
1,639
13,900 13,950
2,089
2,089
2,089
2,089
7,950
8,000
1,196
1,196
1,196
1,196
10,950 11,000
1,646
1,646
1,646
1,646
13,950 14,000
2,096
2,096
2,096
2,096
* This column must also be used by a qualifying widow(er).
(Continued on page 61)
-60-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
14,000
17,000
20,000
14,000 14,050
2,104
2,104
2,104
2,104
17,000 17,050
2,554
2,554
2,554
2,554
20,000 20,050
3,004
3,004
3,004
3,004
14,050 14,100
2,111
2,111
2,111
2,111
17,050 17,100
2,561
2,561
2,561
2,561
20,050 20,100
3,011
3,011
3,011
3,011
14,100 14,150
2,119
2,119
2,119
2,119
17,100 17,150
2,569
2,569
2,569
2,569
20,100 20,150
3,019
3,019
3,019
3,019
14,150 14,200
2,126
2,126
2,126
2,126
17,150 17,200
2,576
2,576
2,576
2,576
20,150 20,200
3,026
3,026
3,026
3,026
14,200 14,250
2,134
2,134
2,134
2,134
17,200 17,250
2,584
2,584
2,584
2,584
20,200 20,250
3,034
3,034
3,034
3,034
14,250 14,300
2,141
2,141
2,141
2,141
17,250 17,300
2,591
2,591
2,591
2,591
20,250 20,300
3,041
3,041
3,041
3,041
14,300 14,350
2,149
2,149
2,149
2,149
17,300 17,350
2,599
2,599
2,599
2,599
20,300 20,350
3,049
3,049
3,049
3,049
14,350 14,400
2,156
2,156
2,156
2,156
17,350 17,400
2,606
2,606
2,606
2,606
20,350 20,400
3,056
3,056
3,056
3,056
14,400 14,450
2,164
2,164
2,164
2,164
17,400 17,450
2,614
2,614
2,614
2,614
20,400 20,450
3,064
3,064
3,064
3,064
14,450 14,500
2,171
2,171
2,171
2,171
17,450 17,500
2,621
2,621
2,621
2,621
20,450 20,500
3,071
3,071
3,071
3,071
14,500 14,550
2,179
2,179
2,179
2,179
17,500 17,550
2,629
2,629
2,629
2,629
20,500 20,550
3,079
3,079
3,079
3,079
14,550 14,600
2,186
2,186
2,186
2,186
17,550 17,600
2,636
2,636
2,636
2,636
20,550 20,600
3,086
3,086
3,086
3,086
14,600 14,650
2,194
2,194
2,194
2,194
17,600 17,650
2,644
2,644
2,644
2,644
20,600 20,650
3,094
3,094
3,094
3,094
14,650 14,700
2,201
2,201
2,201
2,201
17,650 17,700
2,651
2,651
2,651
2,651
20,650 20,700
3,101
3,101
3,101
3,101
14,700 14,750
2,209
2,209
2,209
2,209
17,700 17,750
2,659
2,659
2,659
2,659
20,700 20,750
3,109
3,109
3,109
3,109
14,750 14,800
2,216
2,216
2,216
2,216
17,750 17,800
2,666
2,666
2,666
2,666
20,750 20,800
3,116
3,116
3,116
3,116
14,800 14,850
2,224
2,224
2,224
2,224
17,800 17,850
2,674
2,674
2,674
2,674
20,800 20,850
3,124
3,124
3,124
3,124
14,850 14,900
2,231
2,231
2,231
2,231
17,850 17,900
2,681
2,681
2,681
2,681
20,850 20,900
3,131
3,131
3,131
3,131
14,900 14,950
2,239
2,239
2,239
2,239
17,900 17,950
2,689
2,689
2,689
2,689
20,900 20,950
3,139
3,139
3,139
3,139
14,950 15,000
2,246
2,246
2,246
2,246
17,950 18,000
2,696
2,696
2,696
2,696
20,950 21,000
3,146
3,146
3,146
3,146
15,000
18,000
21,000
15,000 15,050
2,254
2,254
2,254
2,254
18,000 18,050
2,704
2,704
2,704
2,704
21,000 21,050
3,154
3,154
3,154
3,154
15,050 15,100
2,261
2,261
2,261
2,261
18,050 18,100
2,711
2,711
2,711
2,711
21,050 21,100
3,161
3,161
3,161
3,161
15,100 15,150
2,269
2,269
2,269
2,269
18,100 18,150
2,719
2,719
2,719
2,719
21,100 21,150
3,169
3,169
3,169
3,169
15,150 15,200
2,276
2,276
2,276
2,276
18,150 18,200
2,726
2,726
2,726
2,726
21,150 21,200
3,176
3,176
3,176
3,176
15,200 15,250
2,284
2,284
2,284
2,284
18,200 18,250
2,734
2,734
2,734
2,734
21,200 21,250
3,184
3,184
3,184
3,184
15,250 15,300
2,291
2,291
2,291
2,291
18,250 18,300
2,741
2,741
2,741
2,741
21,250 21,300
3,191
3,191
3,191
3,191
15,300 15,350
2,299
2,299
2,299
2,299
18,300 18,350
2,749
2,749
2,749
2,749
21,300 21,350
3,199
3,199
3,199
3,199
15,350 15,400
2,306
2,306
2,306
2,306
18,350 18,400
2,756
2,756
2,756
2,756
21,350 21,400
3,206
3,206
3,206
3,206
15,400 15,450
2,314
2,314
2,314
2,314
18,400 18,450
2,764
2,764
2,764
2,764
21,400 21,450
3,214
3,214
3,214
3,214
15,450 15,500
2,321
2,321
2,321
2,321
18,450 18,500
2,771
2,771
2,771
2,771
21,450 21,500
3,221
3,221
3,221
3,221
15,500 15,550
2,329
2,329
2,329
2,329
18,500 18,550
2,779
2,779
2,779
2,779
21,500 21,550
3,229
3,229
3,229
3,229
15,550 15,600
2,336
2,336
2,336
2,336
18,550 18,600
2,786
2,786
2,786
2,786
21,550 21,600
3,236
3,236
3,236
3,236
15,600 15,650
2,344
2,344
2,344
2,344
18,600 18,650
2,794
2,794
2,794
2,794
21,600 21,650
3,244
3,244
3,244
3,244
15,650 15,700
2,351
2,351
2,351
2,351
18,650 18,700
2,801
2,801
2,801
2,801
21,650 21,700
3,251
3,251
3,251
3,251
15,700 15,750
2,359
2,359
2,359
2,359
18,700 18,750
2,809
2,809
2,809
2,809
21,700 21,750
3,259
3,259
3,259
3,259
15,750 15,800
2,366
2,366
2,366
2,366
18,750 18,800
2,816
2,816
2,816
2,816
21,750 21,800
3,266
3,266
3,266
3,266
15,800 15,850
2,374
2,374
2,374
2,374
18,800 18,850
2,824
2,824
2,824
2,824
21,800 21,850
3,274
3,274
3,274
3,274
15,850 15,900
2,381
2,381
2,381
2,381
18,850 18,900
2,831
2,831
2,831
2,831
21,850 21,900
3,281
3,281
3,281
3,281
15,900 15,950
2,389
2,389
2,389
2,389
18,900 18,950
2,839
2,839
2,839
2,839
21,900 21,950
3,289
3,289
3,289
3,289
15,950 16,000
2,396
2,396
2,396
2,396
18,950 19,000
2,846
2,846
2,846
2,846
21,950 22,000
3,296
3,296
3,303
3,296
16,000
19,000
22,000
16,000 16,050
2,404
2,404
2,404
2,404
19,000 19,050
2,854
2,854
2,854
2,854
22,000 22,050
3,304
3,304
3,317
3,304
16,050 16,100
2,411
2,411
2,411
2,411
19,050 19,100
2,861
2,861
2,861
2,861
22,050 22,100
3,311
3,311
3,331
3,311
16,100 16,150
2,419
2,419
2,419
2,419
19,100 19,150
2,869
2,869
2,869
2,869
22,100 22,150
3,319
3,319
3,345
3,319
16,150 16,200
2,426
2,426
2,426
2,426
19,150 19,200
2,876
2,876
2,876
2,876
22,150 22,200
3,326
3,326
3,359
3,326
16,200 16,250
2,434
2,434
2,434
2,434
19,200 19,250
2,884
2,884
2,884
2,884
22,200 22,250
3,334
3,334
3,373
3,334
16,250 16,300
2,441
2,441
2,441
2,441
19,250 19,300
2,891
2,891
2,891
2,891
22,250 22,300
3,341
3,341
3,387
3,341
16,300 16,350
2,449
2,449
2,449
2,449
19,300 19,350
2,899
2,899
2,899
2,899
22,300 22,350
3,349
3,349
3,401
3,349
16,350 16,400
2,456
2,456
2,456
2,456
19,350 19,400
2,906
2,906
2,906
2,906
22,350 22,400
3,356
3,356
3,415
3,356
16,400 16,450
2,464
2,464
2,464
2,464
19,400 19,450
2,914
2,914
2,914
2,914
22,400 22,450
3,364
3,364
3,429
3,364
16,450 16,500
2,471
2,471
2,471
2,471
19,450 19,500
2,921
2,921
2,921
2,921
22,450 22,500
3,371
3,371
3,443
3,371
16,500 16,550
2,479
2,479
2,479
2,479
19,500 19,550
2,929
2,929
2,929
2,929
22,500 22,550
3,379
3,379
3,457
3,379
16,550 16,600
2,486
2,486
2,486
2,486
19,550 19,600
2,936
2,936
2,936
2,936
22,550 22,600
3,386
3,386
3,471
3,386
16,600 16,650
2,494
2,494
2,494
2,494
19,600 19,650
2,944
2,944
2,944
2,944
22,600 22,650
3,394
3,394
3,485
3,394
16,650 16,700
2,501
2,501
2,501
2,501
19,650 19,700
2,951
2,951
2,951
2,951
22,650 22,700
3,401
3,401
3,499
3,401
16,700 16,750
2,509
2,509
2,509
2,509
19,700 19,750
2,959
2,959
2,959
2,959
22,700 22,750
3,409
3,409
3,513
3,409
16,750 16,800
2,516
2,516
2,516
2,516
19,750 19,800
2,966
2,966
2,966
2,966
22,750 22,800
3,416
3,416
3,527
3,416
16,800 16,850
2,524
2,524
2,524
2,524
19,800 19,850
2,974
2,974
2,974
2,974
22,800 22,850
3,424
3,424
3,541
3,424
16,850 16,900
2,531
2,531
2,531
2,531
19,850 19,900
2,981
2,981
2,981
2,981
22,850 22,900
3,431
3,431
3,555
3,431
16,900 16,950
2,539
2,539
2,539
2,539
19,900 19,950
2,989
2,989
2,989
2,989
22,900 22,950
3,439
3,439
3,569
3,439
16,950 17,000
2,546
2,546
2,546
2,546
19,950 20,000
2,996
2,996
2,996
2,996
22,950 23,000
3,446
3,446
3,583
3,446
* This column must also be used by a qualifying widow(er).
(Continued on page 62)
-61-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
23,000
26,000
29,000
23,000 23,050
3,454
3,454
3,597
3,454
26,000 26,050
3,904
3,904
4,437
3,904
29,000 29,050
4,715
4,354
5,277
4,354
23,050 23,100
3,461
3,461
3,611
3,461
26,050 26,100
3,911
3,911
4,451
3,911
29,050 29,100
4,729
4,361
5,291
4,361
23,100 23,150
3,469
3,469
3,625
3,469
26,100 26,150
3,919
3,919
4,465
3,919
29,100 29,150
4,743
4,369
5,305
4,369
23,150 23,200
3,476
3,476
3,639
3,476
26,150 26,200
3,926
3,926
4,479
3,926
29,150 29,200
4,757
4,376
5,319
4,376
23,200 23,250
3,484
3,484
3,653
3,484
26,200 26,250
3,934
3,934
4,493
3,934
29,200 29,250
4,771
4,384
5,333
4,384
23,250 23,300
3,491
3,491
3,667
3,491
26,250 26,300
3,945
3,941
4,507
3,941
29,250 29,300
4,785
4,391
5,347
4,391
23,300 23,350
3,499
3,499
3,681
3,499
26,300 26,350
3,959
3,949
4,521
3,949
29,300 29,350
4,799
4,399
5,361
4,399
23,350 23,400
3,506
3,506
3,695
3,506
26,350 26,400
3,973
3,956
4,535
3,956
29,350 29,400
4,813
4,406
5,375
4,406
23,400 23,450
3,514
3,514
3,709
3,514
26,400 26,450
3,987
3,964
4,549
3,964
29,400 29,450
4,827
4,414
5,389
4,414
23,450 23,500
3,521
3,521
3,723
3,521
26,450 26,500
4,001
3,971
4,563
3,971
29,450 29,500
4,841
4,421
5,403
4,421
23,500 23,550
3,529
3,529
3,737
3,529
26,500 26,550
4,015
3,979
4,577
3,979
29,500 29,550
4,855
4,429
5,417
4,429
23,550 23,600
3,536
3,536
3,751
3,536
26,550 26,600
4,029
3,986
4,591
3,986
29,550 29,600
4,869
4,436
5,431
4,436
23,600 23,650
3,544
3,544
3,765
3,544
26,600 26,650
4,043
3,994
4,605
3,994
29,600 29,650
4,883
4,444
5,445
4,444
23,650 23,700
3,551
3,551
3,779
3,551
26,650 26,700
4,057
4,001
4,619
4,001
29,650 29,700
4,897
4,451
5,459
4,451
23,700 23,750
3,559
3,559
3,793
3,559
26,700 26,750
4,071
4,009
4,633
4,009
29,700 29,750
4,911
4,459
5,473
4,459
23,750 23,800
3,566
3,566
3,807
3,566
26,750 26,800
4,085
4,016
4,647
4,016
29,750 29,800
4,925
4,466
5,487
4,466
23,800 23,850
3,574
3,574
3,821
3,574
26,800 26,850
4,099
4,024
4,661
4,024
29,800 29,850
4,939
4,474
5,501
4,474
23,850 23,900
3,581
3,581
3,835
3,581
26,850 26,900
4,113
4,031
4,675
4,031
29,850 29,900
4,953
4,481
5,515
4,481
23,900 23,950
3,589
3,589
3,849
3,589
26,900 26,950
4,127
4,039
4,689
4,039
29,900 29,950
4,967
4,489
5,529
4,489
23,950 24,000
3,596
3,596
3,863
3,596
26,950 27,000
4,141
4,046
4,703
4,046
29,950 30,000
4,981
4,496
5,543
4,496
24,000
27,000
30,000
24,000 24,050
3,604
3,604
3,877
3,604
27,000 27,050
4,155
4,054
4,717
4,054
30,000 30,050
4,995
4,504
5,557
4,504
24,050 24,100
3,611
3,611
3,891
3,611
27,050 27,100
4,169
4,061
4,731
4,061
30,050 30,100
5,009
4,511
5,571
4,511
24,100 24,150
3,619
3,619
3,905
3,619
27,100 27,150
4,183
4,069
4,745
4,069
30,100 30,150
5,023
4,519
5,585
4,519
24,150 24,200
3,626
3,626
3,919
3,626
27,150 27,200
4,197
4,076
4,759
4,076
30,150 30,200
5,037
4,526
5,599
4,526
24,200 24,250
3,634
3,634
3,933
3,634
27,200 27,250
4,211
4,084
4,773
4,084
30,200 30,250
5,051
4,534
5,613
4,534
24,250 24,300
3,641
3,641
3,947
3,641
27,250 27,300
4,225
4,091
4,787
4,091
30,250 30,300
5,065
4,541
5,627
4,541
24,300 24,350
3,649
3,649
3,961
3,649
27,300 27,350
4,239
4,099
4,801
4,099
30,300 30,350
5,079
4,549
5,641
4,549
24,350 24,400
3,656
3,656
3,975
3,656
27,350 27,400
4,253
4,106
4,815
4,106
30,350 30,400
5,093
4,556
5,655
4,556
24,400 24,450
3,664
3,664
3,989
3,664
27,400 27,450
4,267
4,114
4,829
4,114
30,400 30,450
5,107
4,564
5,669
4,564
24,450 24,500
3,671
3,671
4,003
3,671
27,450 27,500
4,281
4,121
4,843
4,121
30,450 30,500
5,121
4,571
5,683
4,571
24,500 24,550
3,679
3,679
4,017
3,679
27,500 27,550
4,295
4,129
4,857
4,129
30,500 30,550
5,135
4,579
5,697
4,579
24,550 24,600
3,686
3,686
4,031
3,686
27,550 27,600
4,309
4,136
4,871
4,136
30,550 30,600
5,149
4,586
5,711
4,586
24,600 24,650
3,694
3,694
4,045
3,694
27,600 27,650
4,323
4,144
4,885
4,144
30,600 30,650
5,163
4,594
5,725
4,594
24,650 24,700
3,701
3,701
4,059
3,701
27,650 27,700
4,337
4,151
4,899
4,151
30,650 30,700
5,177
4,601
5,739
4,601
24,700 24,750
3,709
3,709
4,073
3,709
27,700 27,750
4,351
4,159
4,913
4,159
30,700 30,750
5,191
4,609
5,753
4,609
24,750 24,800
3,716
3,716
4,087
3,716
27,750 27,800
4,365
4,166
4,927
4,166
30,750 30,800
5,205
4,616
5,767
4,616
24,800 24,850
3,724
3,724
4,101
3,724
27,800 27,850
4,379
4,174
4,941
4,174
30,800 30,850
5,219
4,624
5,781
4,624
24,850 24,900
3,731
3,731
4,115
3,731
27,850 27,900
4,393
4,181
4,955
4,181
30,850 30,900
5,233
4,631
5,795
4,631
24,900 24,950
3,739
3,739
4,129
3,739
27,900 27,950
4,407
4,189
4,969
4,189
30,900 30,950
5,247
4,639
5,809
4,639
24,950 25,000
3,746
3,746
4,143
3,746
27,950 28,000
4,421
4,196
4,983
4,196
30,950 31,000
5,261
4,646
5,823
4,646
25,000
28,000
31,000
25,000 25,050
3,754
3,754
4,157
3,754
28,000 28,050
4,435
4,204
4,997
4,204
31,000 31,050
5,275
4,654
5,837
4,654
25,050 25,100
3,761
3,761
4,171
3,761
28,050 28,100
4,449
4,211
5,011
4,211
31,050 31,100
5,289
4,661
5,851
4,661
25,100 25,150
3,769
3,769
4,185
3,769
28,100 28,150
4,463
4,219
5,025
4,219
31,100 31,150
5,303
4,669
5,865
4,669
25,150 25,200
3,776
3,776
4,199
3,776
28,150 28,200
4,477
4,226
5,039
4,226
31,150 31,200
5,317
4,676
5,879
4,676
25,200 25,250
3,784
3,784
4,213
3,784
28,200 28,250
4,491
4,234
5,053
4,234
31,200 31,250
5,331
4,684
5,893
4,684
25,250 25,300
3,791
3,791
4,227
3,791
28,250 28,300
4,505
4,241
5,067
4,241
31,250 31,300
5,345
4,691
5,907
4,691
25,300 25,350
3,799
3,799
4,241
3,799
28,300 28,350
4,519
4,249
5,081
4,249
31,300 31,350
5,359
4,699
5,921
4,699
25,350 25,400
3,806
3,806
4,255
3,806
28,350 28,400
4,533
4,256
5,095
4,256
31,350 31,400
5,373
4,706
5,935
4,706
25,400 25,450
3,814
3,814
4,269
3,814
28,400 28,450
4,547
4,264
5,109
4,264
31,400 31,450
5,387
4,714
5,949
4,714
25,450 25,500
3,821
3,821
4,283
3,821
28,450 28,500
4,561
4,271
5,123
4,271
31,450 31,500
5,401
4,721
5,963
4,721
25,500 25,550
3,829
3,829
4,297
3,829
28,500 28,550
4,575
4,279
5,137
4,279
31,500 31,550
5,415
4,729
5,977
4,729
25,550 25,600
3,836
3,836
4,311
3,836
28,550 28,600
4,589
4,286
5,151
4,286
31,550 31,600
5,429
4,736
5,991
4,736
25,600 25,650
3,844
3,844
4,325
3,844
28,600 28,650
4,603
4,294
5,165
4,294
31,600 31,650
5,443
4,744
6,005
4,744
25,650 25,700
3,851
3,851
4,339
3,851
28,650 28,700
4,617
4,301
5,179
4,301
31,650 31,700
5,457
4,751
6,019
4,751
25,700 25,750
3,859
3,859
4,353
3,859
28,700 28,750
4,631
4,309
5,193
4,309
31,700 31,750
5,471
4,759
6,033
4,759
25,750 25,800
3,866
3,866
4,367
3,866
28,750 28,800
4,645
4,316
5,207
4,316
31,750 31,800
5,485
4,766
6,047
4,766
25,800 25,850
3,874
3,874
4,381
3,874
28,800 28,850
4,659
4,324
5,221
4,324
31,800 31,850
5,499
4,774
6,061
4,774
25,850 25,900
3,881
3,881
4,395
3,881
28,850 28,900
4,673
4,331
5,235
4,331
31,850 31,900
5,513
4,781
6,075
4,781
25,900 25,950
3,889
3,889
4,409
3,889
28,900 28,950
4,687
4,339
5,249
4,339
31,900 31,950
5,527
4,789
6,089
4,789
25,950 26,000
3,896
3,896
4,423
3,896
28,950 29,000
4,701
4,346
5,263
4,346
31,950 32,000
5,541
4,796
6,103
4,796
* This column must also be used by a qualifying widow(er).
(Continued on page 63)
-62-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
32,000
35,000
38,000
32,000 32,050
5,555
4,804
6,117
4,804
35,000 35,050
6,395
5,254
6,957
5,254
38,000 38,050
7,235
5,704
7,797
6,078
32,050 32,100
5,569
4,811
6,131
4,811
35,050 35,100
6,409
5,261
6,971
5,261
38,050 38,100
7,249
5,711
7,811
6,092
32,100 32,150
5,583
4,819
6,145
4,819
35,100 35,150
6,423
5,269
6,985
5,269
38,100 38,150
7,263
5,719
7,825
6,106
32,150 32,200
5,597
4,826
6,159
4,826
35,150 35,200
6,437
5,276
6,999
5,280
38,150 38,200
7,277
5,726
7,839
6,120
32,200 32,250
5,611
4,834
6,173
4,834
35,200 35,250
6,451
5,284
7,013
5,294
38,200 38,250
7,291
5,734
7,853
6,134
32,250 32,300
5,625
4,841
6,187
4,841
35,250 35,300
6,465
5,291
7,027
5,308
38,250 38,300
7,305
5,741
7,867
6,148
32,300 32,350
5,639
4,849
6,201
4,849
35,300 35,350
6,479
5,299
7,041
5,322
38,300 38,350
7,319
5,749
7,881
6,162
32,350 32,400
5,653
4,856
6,215
4,856
35,350 35,400
6,493
5,306
7,055
5,336
38,350 38,400
7,333
5,756
7,895
6,176
32,400 32,450
5,667
4,864
6,229
4,864
35,400 35,450
6,507
5,314
7,069
5,350
38,400 38,450
7,347
5,764
7,909
6,190
32,450 32,500
5,681
4,871
6,243
4,871
35,450 35,500
6,521
5,321
7,083
5,364
38,450 38,500
7,361
5,771
7,923
6,204
32,500 32,550
5,695
4,879
6,257
4,879
35,500 35,550
6,535
5,329
7,097
5,378
38,500 38,550
7,375
5,779
7,937
6,218
32,550 32,600
5,709
4,886
6,271
4,886
35,550 35,600
6,549
5,336
7,111
5,392
38,550 38,600
7,389
5,786
7,951
6,232
32,600 32,650
5,723
4,894
6,285
4,894
35,600 35,650
6,563
5,344
7,125
5,406
38,600 38,650
7,403
5,794
7,965
6,246
32,650 32,700
5,737
4,901
6,299
4,901
35,650 35,700
6,577
5,351
7,139
5,420
38,650 38,700
7,417
5,801
7,979
6,260
32,700 32,750
5,751
4,909
6,313
4,909
35,700 35,750
6,591
5,359
7,153
5,434
38,700 38,750
7,431
5,809
7,993
6,274
32,750 32,800
5,765
4,916
6,327
4,916
35,750 35,800
6,605
5,366
7,167
5,448
38,750 38,800
7,445
5,816
8,007
6,288
32,800 32,850
5,779
4,924
6,341
4,924
35,800 35,850
6,619
5,374
7,181
5,462
38,800 38,850
7,459
5,824
8,021
6,302
32,850 32,900
5,793
4,931
6,355
4,931
35,850 35,900
6,633
5,381
7,195
5,476
38,850 38,900
7,473
5,831
8,035
6,316
32,900 32,950
5,807
4,939
6,369
4,939
35,900 35,950
6,647
5,389
7,209
5,490
38,900 38,950
7,487
5,839
8,049
6,330
32,950 33,000
5,821
4,946
6,383
4,946
35,950 36,000
6,661
5,396
7,223
5,504
38,950 39,000
7,501
5,846
8,063
6,344
33,000
36,000
39,000
33,000 33,050
5,835
4,954
6,397
4,954
36,000 36,050
6,675
5,404
7,237
5,518
39,000 39,050
7,515
5,854
8,077
6,358
33,050 33,100
5,849
4,961
6,411
4,961
36,050 36,100
6,689
5,411
7,251
5,532
39,050 39,100
7,529
5,861
8,091
6,372
33,100 33,150
5,863
4,969
6,425
4,969
36,100 36,150
6,703
5,419
7,265
5,546
39,100 39,150
7,543
5,869
8,105
6,386
33,150 33,200
5,877
4,976
6,439
4,976
36,150 36,200
6,717
5,426
7,279
5,560
39,150 39,200
7,557
5,876
8,119
6,400
33,200 33,250
5,891
4,984
6,453
4,984
36,200 36,250
6,731
5,434
7,293
5,574
39,200 39,250
7,571
5,884
8,133
6,414
33,250 33,300
5,905
4,991
6,467
4,991
36,250 36,300
6,745
5,441
7,307
5,588
39,250 39,300
7,585
5,891
8,147
6,428
33,300 33,350
5,919
4,999
6,481
4,999
36,300 36,350
6,759
5,449
7,321
5,602
39,300 39,350
7,599
5,899
8,161
6,442
33,350 33,400
5,933
5,006
6,495
5,006
36,350 36,400
6,773
5,456
7,335
5,616
39,350 39,400
7,613
5,906
8,175
6,456
33,400 33,450
5,947
5,014
6,509
5,014
36,400 36,450
6,787
5,464
7,349
5,630
39,400 39,450
7,627
5,914
8,189
6,470
33,450 33,500
5,961
5,021
6,523
5,021
36,450 36,500
6,801
5,471
7,363
5,644
39,450 39,500
7,641
5,921
8,203
6,484
33,500 33,550
5,975
5,029
6,537
5,029
36,500 36,550
6,815
5,479
7,377
5,658
39,500 39,550
7,655
5,929
8,217
6,498
33,550 33,600
5,989
5,036
6,551
5,036
36,550 36,600
6,829
5,486
7,391
5,672
39,550 39,600
7,669
5,936
8,231
6,512
33,600 33,650
6,003
5,044
6,565
5,044
36,600 36,650
6,843
5,494
7,405
5,686
39,600 39,650
7,683
5,944
8,245
6,526
33,650 33,700
6,017
5,051
6,579
5,051
36,650 36,700
6,857
5,501
7,419
5,700
39,650 39,700
7,697
5,951
8,259
6,540
33,700 33,750
6,031
5,059
6,593
5,059
36,700 36,750
6,871
5,509
7,433
5,714
39,700 39,750
7,711
5,959
8,273
6,554
33,750 33,800
6,045
5,066
6,607
5,066
36,750 36,800
6,885
5,516
7,447
5,728
39,750 39,800
7,725
5,966
8,287
6,568
33,800 33,850
6,059
5,074
6,621
5,074
36,800 36,850
6,899
5,524
7,461
5,742
39,800 39,850
7,739
5,974
8,301
6,582
33,850 33,900
6,073
5,081
6,635
5,081
36,850 36,900
6,913
5,531
7,475
5,756
39,850 39,900
7,753
5,981
8,315
6,596
33,900 33,950
6,087
5,089
6,649
5,089
36,900 36,950
6,927
5,539
7,489
5,770
39,900 39,950
7,767
5,989
8,329
6,610
33,950 34,000
6,101
5,096
6,663
5,096
36,950 37,000
6,941
5,546
7,503
5,784
39,950 40,000
7,781
5,996
8,343
6,624
34,000
37,000
40,000
34,000 34,050
6,115
5,104
6,677
5,104
37,000 37,050
6,955
5,554
7,517
5,798
40,000 40,050
7,795
6,004
8,357
6,638
34,050 34,100
6,129
5,111
6,691
5,111
37,050 37,100
6,969
5,561
7,531
5,812
40,050 40,100
7,809
6,011
8,371
6,652
34,100 34,150
6,143
5,119
6,705
5,119
37,100 37,150
6,983
5,569
7,545
5,826
40,100 40,150
7,823
6,019
8,385
6,666
34,150 34,200
6,157
5,126
6,719
5,126
37,150 37,200
6,997
5,576
7,559
5,840
40,150 40,200
7,837
6,026
8,399
6,680
34,200 34,250
6,171
5,134
6,733
5,134
37,200 37,250
7,011
5,584
7,573
5,854
40,200 40,250
7,851
6,034
8,413
6,694
34,250 34,300
6,185
5,141
6,747
5,141
37,250 37,300
7,025
5,591
7,587
5,868
40,250 40,300
7,865
6,041
8,427
6,708
34,300 34,350
6,199
5,149
6,761
5,149
37,300 37,350
7,039
5,599
7,601
5,882
40,300 40,350
7,879
6,049
8,441
6,722
34,350 34,400
6,213
5,156
6,775
5,156
37,350 37,400
7,053
5,606
7,615
5,896
40,350 40,400
7,893
6,056
8,455
6,736
34,400 34,450
6,227
5,164
6,789
5,164
37,400 37,450
7,067
5,614
7,629
5,910
40,400 40,450
7,907
6,064
8,469
6,750
34,450 34,500
6,241
5,171
6,803
5,171
37,450 37,500
7,081
5,621
7,643
5,924
40,450 40,500
7,921
6,071
8,483
6,764
34,500 34,550
6,255
5,179
6,817
5,179
37,500 37,550
7,095
5,629
7,657
5,938
40,500 40,550
7,935
6,079
8,497
6,778
34,550 34,600
6,269
5,186
6,831
5,186
37,550 37,600
7,109
5,636
7,671
5,952
40,550 40,600
7,949
6,086
8,511
6,792
34,600 34,650
6,283
5,194
6,845
5,194
37,600 37,650
7,123
5,644
7,685
5,966
40,600 40,650
7,963
6,094
8,525
6,806
34,650 34,700
6,297
5,201
6,859
5,201
37,650 37,700
7,137
5,651
7,699
5,980
40,650 40,700
7,977
6,101
8,539
6,820
34,700 34,750
6,311
5,209
6,873
5,209
37,700 37,750
7,151
5,659
7,713
5,994
40,700 40,750
7,991
6,109
8,553
6,834
34,750 34,800
6,325
5,216
6,887
5,216
37,750 37,800
7,165
5,666
7,727
6,008
40,750 40,800
8,005
6,116
8,567
6,848
34,800 34,850
6,339
5,224
6,901
5,224
37,800 37,850
7,179
5,674
7,741
6,022
40,800 40,850
8,019
6,124
8,581
6,862
34,850 34,900
6,353
5,231
6,915
5,231
37,850 37,900
7,193
5,681
7,755
6,036
40,850 40,900
8,033
6,131
8,595
6,876
34,900 34,950
6,367
5,239
6,929
5,239
37,900 37,950
7,207
5,689
7,769
6,050
40,900 40,950
8,047
6,139
8,609
6,890
34,950 35,000
6,381
5,246
6,943
5,246
37,950 38,000
7,221
5,696
7,783
6,064
40,950 41,000
8,061
6,146
8,623
6,904
* This column must also be used by a qualifying widow(er).
(Continued on page 64)
-63-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
41,000
44,000
47,000
41,000 41,050
8,075
6,154
8,637
6,918
44,000 44,050
8,915
6,627
9,477
7,758
47,000 47,050
9,755
7,467 10,317
8,598
41,050 41,100
8,089
6,161
8,651
6,932
44,050 44,100
8,929
6,641
9,491
7,772
47,050 47,100
9,769
7,481 10,331
8,612
41,100 41,150
8,103
6,169
8,665
6,946
44,100 44,150
8,943
6,655
9,505
7,786
47,100 47,150
9,783
7,495 10,345
8,626
41,150 41,200
8,117
6,176
8,679
6,960
44,150 44,200
8,957
6,669
9,519
7,800
47,150 47,200
9,797
7,509 10,359
8,640
41,200 41,250
8,131
6,184
8,693
6,974
44,200 44,250
8,971
6,683
9,533
7,814
47,200 47,250
9,811
7,523 10,373
8,654
41,250 41,300
8,145
6,191
8,707
6,988
44,250 44,300
8,985
6,697
9,547
7,828
47,250 47,300
9,825
7,537 10,387
8,668
41,300 41,350
8,159
6,199
8,721
7,002
44,300 44,350
8,999
6,711
9,561
7,842
47,300 47,350
9,839
7,551 10,401
8,682
41,350 41,400
8,173
6,206
8,735
7,016
44,350 44,400
9,013
6,725
9,575
7,856
47,350 47,400
9,853
7,565 10,415
8,696
41,400 41,450
8,187
6,214
8,749
7,030
44,400 44,450
9,027
6,739
9,589
7,870
47,400 47,450
9,867
7,579 10,429
8,710
41,450 41,500
8,201
6,221
8,763
7,044
44,450 44,500
9,041
6,753
9,603
7,884
47,450 47,500
9,881
7,593 10,443
8,724
41,500 41,550
8,215
6,229
8,777
7,058
44,500 44,550
9,055
6,767
9,617
7,898
47,500 47,550
9,895
7,607 10,457
8,738
41,550 41,600
8,229
6,236
8,791
7,072
44,550 44,600
9,069
6,781
9,631
7,912
47,550 47,600
9,909
7,621 10,471
8,752
41,600 41,650
8,243
6,244
8,805
7,086
44,600 44,650
9,083
6,795
9,645
7,926
47,600 47,650
9,923
7,635 10,485
8,766
41,650 41,700
8,257
6,251
8,819
7,100
44,650 44,700
9,097
6,809
9,659
7,940
47,650 47,700
9,937
7,649 10,499
8,780
41,700 41,750
8,271
6,259
8,833
7,114
44,700 44,750
9,111
6,823
9,673
7,954
47,700 47,750
9,951
7,663 10,513
8,794
41,750 41,800
8,285
6,266
8,847
7,128
44,750 44,800
9,125
6,837
9,687
7,968
47,750 47,800
9,965
7,677 10,527
8,808
41,800 41,850
8,299
6,274
8,861
7,142
44,800 44,850
9,139
6,851
9,701
7,982
47,800 47,850
9,979
7,691 10,541
8,822
41,850 41,900
8,313
6,281
8,875
7,156
44,850 44,900
9,153
6,865
9,715
7,996
47,850 47,900
9,993
7,705 10,555
8,836
41,900 41,950
8,327
6,289
8,889
7,170
44,900 44,950
9,167
6,879
9,729
8,010
47,900 47,950 10,007
7,719 10,569
8,850
41,950 42,000
8,341
6,296
8,903
7,184
44,950 45,000
9,181
6,893
9,743
8,024
47,950 48,000 10,021
7,733 10,583
8,864
42,000
45,000
48,000
42,000 42,050
8,355
6,304
8,917
7,198
45,000 45,050
9,195
6,907
9,757
8,038
48,000 48,050 10,035
7,747 10,597
8,878
42,050 42,100
8,369
6,311
8,931
7,212
45,050 45,100
9,209
6,921
9,771
8,052
48,050 48,100 10,049
7,761 10,611
8,892
42,100 42,150
8,383
6,319
8,945
7,226
45,100 45,150
9,223
6,935
9,785
8,066
48,100 48,150 10,063
7,775 10,625
8,906
42,150 42,200
8,397
6,326
8,959
7,240
45,150 45,200
9,237
6,949
9,799
8,080
48,150 48,200 10,077
7,789 10,639
8,920
42,200 42,250
8,411
6,334
8,973
7,254
45,200 45,250
9,251
6,963
9,813
8,094
48,200 48,250 10,091
7,803 10,653
8,934
42,250 42,300
8,425
6,341
8,987
7,268
45,250 45,300
9,265
6,977
9,827
8,108
48,250 48,300 10,105
7,817 10,667
8,948
42,300 42,350
8,439
6,349
9,001
7,282
45,300 45,350
9,279
6,991
9,841
8,122
48,300 48,350 10,119
7,831 10,681
8,962
42,350 42,400
8,453
6,356
9,015
7,296
45,350 45,400
9,293
7,005
9,855
8,136
48,350 48,400 10,133
7,845 10,695
8,976
42,400 42,450
8,467
6,364
9,029
7,310
45,400 45,450
9,307
7,019
9,869
8,150
48,400 48,450 10,147
7,859 10,709
8,990
42,450 42,500
8,481
6,371
9,043
7,324
45,450 45,500
9,321
7,033
9,883
8,164
48,450 48,500 10,161
7,873 10,723
9,004
42,500 42,550
8,495
6,379
9,057
7,338
45,500 45,550
9,335
7,047
9,897
8,178
48,500 48,550 10,175
7,887 10,737
9,018
42,550 42,600
8,509
6,386
9,071
7,352
45,550 45,600
9,349
7,061
9,911
8,192
48,550 48,600 10,189
7,901 10,751
9,032
42,600 42,650
8,523
6,394
9,085
7,366
45,600 45,650
9,363
7,075
9,925
8,206
48,600 48,650 10,203
7,915 10,765
9,046
42,650 42,700
8,537
6,401
9,099
7,380
45,650 45,700
9,377
7,089
9,939
8,220
48,650 48,700 10,217
7,929 10,779
9,060
42,700 42,750
8,551
6,409
9,113
7,394
45,700 45,750
9,391
7,103
9,953
8,234
48,700 48,750 10,231
7,943 10,793
9,074
42,750 42,800
8,565
6,416
9,127
7,408
45,750 45,800
9,405
7,117
9,967
8,248
48,750 48,800 10,245
7,957 10,807
9,088
42,800 42,850
8,579
6,424
9,141
7,422
45,800 45,850
9,419
7,131
9,981
8,262
48,800 48,850 10,259
7,971 10,821
9,102
42,850 42,900
8,593
6,431
9,155
7,436
45,850 45,900
9,433
7,145
9,995
8,276
48,850 48,900 10,273
7,985 10,835
9,116
42,900 42,950
8,607
6,439
9,169
7,450
45,900 45,950
9,447
7,159 10,009
8,290
48,900 48,950 10,287
7,999 10,849
9,130
42,950 43,000
8,621
6,446
9,183
7,464
45,950 46,000
9,461
7,173 10,023
8,304
48,950 49,000 10,301
8,013 10,863
9,144
43,000
46,000
49,000
43,000 43,050
8,635
6,454
9,197
7,478
46,000 46,050
9,475
7,187 10,037
8,318
49,000 49,050 10,315
8,027 10,877
9,158
43,050 43,100
8,649
6,461
9,211
7,492
46,050 46,100
9,489
7,201 10,051
8,332
49,050 49,100 10,329
8,041 10,891
9,172
43,100 43,150
8,663
6,469
9,225
7,506
46,100 46,150
9,503
7,215 10,065
8,346
49,100 49,150 10,343
8,055 10,905
9,186
43,150 43,200
8,677
6,476
9,239
7,520
46,150 46,200
9,517
7,229 10,079
8,360
49,150 49,200 10,357
8,069 10,919
9,200
43,200 43,250
8,691
6,484
9,253
7,534
46,200 46,250
9,531
7,243 10,093
8,374
49,200 49,250 10,371
8,083 10,933
9,214
43,250 43,300
8,705
6,491
9,267
7,548
46,250 46,300
9,545
7,257 10,107
8,388
49,250 49,300 10,385
8,097 10,947
9,228
43,300 43,350
8,719
6,499
9,281
7,562
46,300 46,350
9,559
7,271 10,121
8,402
49,300 49,350 10,399
8,111 10,961
9,242
43,350 43,400
8,733
6,506
9,295
7,576
46,350 46,400
9,573
7,285 10,135
8,416
49,350 49,400 10,413
8,125 10,975
9,256
43,400 43,450
8,747
6,514
9,309
7,590
46,400 46,450
9,587
7,299 10,149
8,430
49,400 49,450 10,427
8,139 10,989
9,270
43,450 43,500
8,761
6,521
9,323
7,604
46,450 46,500
9,601
7,313 10,163
8,444
49,450 49,500 10,441
8,153 11,003
9,284
43,500 43,550
8,775
6,529
9,337
7,618
46,500 46,550
9,615
7,327 10,177
8,458
49,500 49,550 10,455
8,167 11,017
9,298
43,550 43,600
8,789
6,536
9,351
7,632
46,550 46,600
9,629
7,341 10,191
8,472
49,550 49,600 10,469
8,181 11,031
9,312
43,600 43,650
8,803
6,544
9,365
7,646
46,600 46,650
9,643
7,355 10,205
8,486
49,600 49,650 10,483
8,195 11,045
9,326
43,650 43,700
8,817
6,551
9,379
7,660
46,650 46,700
9,657
7,369 10,219
8,500
49,650 49,700 10,497
8,209 11,059
9,340
43,700 43,750
8,831
6,559
9,393
7,674
46,700 46,750
9,671
7,383 10,233
8,514
49,700 49,750 10,511
8,223 11,073
9,354
43,750 43,800
8,845
6,566
9,407
7,688
46,750 46,800
9,685
7,397 10,247
8,528
49,750 49,800 10,525
8,237 11,087
9,368
43,800 43,850
8,859
6,574
9,421
7,702
46,800 46,850
9,699
7,411 10,261
8,542
49,800 49,850 10,539
8,251 11,101
9,382
43,850 43,900
8,873
6,585
9,435
7,716
46,850 46,900
9,713
7,425 10,275
8,556
49,850 49,900 10,553
8,265 11,115
9,396
43,900 43,950
8,887
6,599
9,449
7,730
46,900 46,950
9,727
7,439 10,289
8,570
49,900 49,950 10,567
8,279 11,129
9,410
43,950 44,000
8,901
6,613
9,463
7,744
46,950 47,000
9,741
7,453 10,303
8,584
49,950 50,000 10,581
8,293 11,143
9,424
* This column must also be used by a qualifying widow(er).
(Continued on page 65)
-64-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
50,000
53,000
56,000
50,000 50,050 10,595
8,307 11,157
9,438
53,000 53,050 11,435
9,147 11,998 10,278
56,000 56,050 12,275
9,987 12,928 11,118
50,050 50,100 10,609
8,321 11,171
9,452
53,050 53,100 11,449
9,161 12,014 10,292
56,050 56,100 12,289 10,001 12,944 11,132
50,100 50,150 10,623
8,335 11,185
9,466
53,100 53,150 11,463
9,175 12,029 10,306
56,100 56,150 12,303 10,015 12,959 11,146
50,150 50,200 10,637
8,349 11,199
9,480
53,150 53,200 11,477
9,189 12,045 10,320
56,150 56,200 12,317 10,029 12,975 11,160
50,200 50,250 10,651
8,363 11,213
9,494
53,200 53,250 11,491
9,203 12,060 10,334
56,200 56,250 12,331 10,043 12,990 11,174
50,250 50,300 10,665
8,377 11,227
9,508
53,250 53,300 11,505
9,217 12,076 10,348
56,250 56,300 12,345 10,057 13,006 11,188
50,300 50,350 10,679
8,391 11,241
9,522
53,300 53,350 11,519
9,231 12,091 10,362
56,300 56,350 12,359 10,071 13,021 11,202
50,350 50,400 10,693
8,405 11,255
9,536
53,350 53,400 11,533
9,245 12,107 10,376
56,350 56,400 12,373 10,085 13,037 11,216
50,400 50,450 10,707
8,419 11,269
9,550
53,400 53,450 11,547
9,259 12,122 10,390
56,400 56,450 12,387 10,099 13,052 11,230
50,450 50,500 10,721
8,433 11,283
9,564
53,450 53,500 11,561
9,273 12,138 10,404
56,450 56,500 12,401 10,113 13,068 11,244
50,500 50,550 10,735
8,447 11,297
9,578
53,500 53,550 11,575
9,287 12,153 10,418
56,500 56,550 12,415 10,127 13,083 11,258
50,550 50,600 10,749
8,461 11,311
9,592
53,550 53,600 11,589
9,301 12,169 10,432
56,550 56,600 12,429 10,141 13,099 11,272
50,600 50,650 10,763
8,475 11,325
9,606
53,600 53,650 11,603
9,315 12,184 10,446
56,600 56,650 12,443 10,155 13,114 11,286
50,650 50,700 10,777
8,489 11,339
9,620
53,650 53,700 11,617
9,329 12,200 10,460
56,650 56,700 12,457 10,169 13,130 11,300
50,700 50,750 10,791
8,503 11,353
9,634
53,700 53,750 11,631
9,343 12,215 10,474
56,700 56,750 12,471 10,183 13,145 11,314
50,750 50,800 10,805
8,517 11,367
9,648
53,750 53,800 11,645
9,357 12,231 10,488
56,750 56,800 12,485 10,197 13,161 11,328
50,800 50,850 10,819
8,531 11,381
9,662
53,800 53,850 11,659
9,371 12,246 10,502
56,800 56,850 12,499 10,211 13,176 11,342
50,850 50,900 10,833
8,545 11,395
9,676
53,850 53,900 11,673
9,385 12,262 10,516
56,850 56,900 12,513 10,225 13,192 11,356
50,900 50,950 10,847
8,559 11,409
9,690
53,900 53,950 11,687
9,399 12,277 10,530
56,900 56,950 12,527 10,239 13,207 11,370
50,950 51,000 10,861
8,573 11,423
9,704
53,950 54,000 11,701
9,413 12,293 10,544
56,950 57,000 12,541 10,253 13,223 11,384
51,000
54,000
57,000
51,000 51,050 10,875
8,587 11,437
9,718
54,000 54,050 11,715
9,427 12,308 10,558
57,000 57,050 12,555 10,267 13,238 11,398
51,050 51,100 10,889
8,601 11,451
9,732
54,050 54,100 11,729
9,441 12,324 10,572
57,050 57,100 12,569 10,281 13,254 11,412
51,100 51,150 10,903
8,615 11,465
9,746
54,100 54,150 11,743
9,455 12,339 10,586
57,100 57,150 12,583 10,295 13,269 11,426
51,150 51,200 10,917
8,629 11,479
9,760
54,150 54,200 11,757
9,469 12,355 10,600
57,150 57,200 12,597 10,309 13,285 11,440
51,200 51,250 10,931
8,643 11,493
9,774
54,200 54,250 11,771
9,483 12,370 10,614
57,200 57,250 12,611 10,323 13,300 11,454
51,250 51,300 10,945
8,657 11,507
9,788
54,250 54,300 11,785
9,497 12,386 10,628
57,250 57,300 12,625 10,337 13,316 11,468
51,300 51,350 10,959
8,671 11,521
9,802
54,300 54,350 11,799
9,511 12,401 10,642
57,300 57,350 12,639 10,351 13,331 11,482
51,350 51,400 10,973
8,685 11,535
9,816
54,350 54,400 11,813
9,525 12,417 10,656
57,350 57,400 12,653 10,365 13,347 11,496
51,400 51,450 10,987
8,699 11,549
9,830
54,400 54,450 11,827
9,539 12,432 10,670
57,400 57,450 12,667 10,379 13,362 11,510
51,450 51,500 11,001
8,713 11,563
9,844
54,450 54,500 11,841
9,553 12,448 10,684
57,450 57,500 12,681 10,393 13,378 11,524
51,500 51,550 11,015
8,727 11,577
9,858
54,500 54,550 11,855
9,567 12,463 10,698
57,500 57,550 12,695 10,407 13,393 11,538
51,550 51,600 11,029
8,741 11,591
9,872
54,550 54,600 11,869
9,581 12,479 10,712
57,550 57,600 12,709 10,421 13,409 11,552
51,600 51,650 11,043
8,755 11,605
9,886
54,600 54,650 11,883
9,595 12,494 10,726
57,600 57,650 12,723 10,435 13,424 11,566
51,650 51,700 11,057
8,769 11,619
9,900
54,650 54,700 11,897
9,609 12,510 10,740
57,650 57,700 12,737 10,449 13,440 11,580
51,700 51,750 11,071
8,783 11,633
9,914
54,700 54,750 11,911
9,623 12,525 10,754
57,700 57,750 12,751 10,463 13,455 11,594
51,750 51,800 11,085
8,797 11,647
9,928
54,750 54,800 11,925
9,637 12,541 10,768
57,750 57,800 12,765 10,477 13,471 11,608
51,800 51,850 11,099
8,811 11,661
9,942
54,800 54,850 11,939
9,651 12,556 10,782
57,800 57,850 12,779 10,491 13,486 11,622
51,850 51,900 11,113
8,825 11,675
9,956
54,850 54,900 11,953
9,665 12,572 10,796
57,850 57,900 12,793 10,505 13,502 11,636
51,900 51,950 11,127
8,839 11,689
9,970
54,900 54,950 11,967
9,679 12,587 10,810
57,900 57,950 12,807 10,519 13,517 11,650
51,950 52,000 11,141
8,853 11,703
9,984
54,950 55,000 11,981
9,693 12,603 10,824
57,950 58,000 12,821 10,533 13,533 11,664
52,000
55,000
58,000
52,000 52,050 11,155
8,867 11,717
9,998
55,000 55,050 11,995
9,707 12,618 10,838
58,000 58,050 12,835 10,547 13,548 11,678
52,050 52,100 11,169
8,881 11,731 10,012
55,050 55,100 12,009
9,721 12,634 10,852
58,050 58,100 12,849 10,561 13,564 11,692
52,100 52,150 11,183
8,895 11,745 10,026
55,100 55,150 12,023
9,735 12,649 10,866
58,100 58,150 12,863 10,575 13,579 11,706
52,150 52,200 11,197
8,909 11,759 10,040
55,150 55,200 12,037
9,749 12,665 10,880
58,150 58,200 12,877 10,589 13,595 11,720
52,200 52,250 11,211
8,923 11,773 10,054
55,200 55,250 12,051
9,763 12,680 10,894
58,200 58,250 12,891 10,603 13,610 11,734
52,250 52,300 11,225
8,937 11,787 10,068
55,250 55,300 12,065
9,777 12,696 10,908
58,250 58,300 12,905 10,617 13,626 11,748
52,300 52,350 11,239
8,951 11,801 10,082
55,300 55,350 12,079
9,791 12,711 10,922
58,300 58,350 12,919 10,631 13,641 11,762
52,350 52,400 11,253
8,965 11,815 10,096
55,350 55,400 12,093
9,805 12,727 10,936
58,350 58,400 12,933 10,645 13,657 11,776
52,400 52,450 11,267
8,979 11,829 10,110
55,400 55,450 12,107
9,819 12,742 10,950
58,400 58,450 12,947 10,659 13,672 11,790
52,450 52,500 11,281
8,993 11,843 10,124
55,450 55,500 12,121
9,833 12,758 10,964
58,450 58,500 12,961 10,673 13,688 11,804
52,500 52,550 11,295
9,007 11,857 10,138
55,500 55,550 12,135
9,847 12,773 10,978
58,500 58,550 12,975 10,687 13,703 11,818
52,550 52,600 11,309
9,021 11,871 10,152
55,550 55,600 12,149
9,861 12,789 10,992
58,550 58,600 12,989 10,701 13,719 11,832
52,600 52,650 11,323
9,035 11,885 10,166
55,600 55,650 12,163
9,875 12,804 11,006
58,600 58,650 13,003 10,715 13,734 11,846
52,650 52,700 11,337
9,049 11,899 10,180
55,650 55,700 12,177
9,889 12,820 11,020
58,650 58,700 13,017 10,729 13,750 11,860
52,700 52,750 11,351
9,063 11,913 10,194
55,700 55,750 12,191
9,903 12,835 11,034
58,700 58,750 13,031 10,743 13,765 11,874
52,750 52,800 11,365
9,077 11,927 10,208
55,750 55,800 12,205
9,917 12,851 11,048
58,750 58,800 13,045 10,757 13,781 11,888
52,800 52,850 11,379
9,091 11,941 10,222
55,800 55,850 12,219
9,931 12,866 11,062
58,800 58,850 13,059 10,771 13,796 11,902
52,850 52,900 11,393
9,105 11,955 10,236
55,850 55,900 12,233
9,945 12,882 11,076
58,850 58,900 13,073 10,785 13,812 11,916
52,900 52,950 11,407
9,119 11,969 10,250
55,900 55,950 12,247
9,959 12,897 11,090
58,900 58,950 13,087 10,799 13,827 11,930
52,950 53,000 11,421
9,133 11,983 10,264
55,950 56,000 12,261
9,973 12,913 11,104
58,950 59,000 13,101 10,813 13,843 11,944
* This column must also be used by a qualifying widow(er).
(Continued on page 66)
-65-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
59,000
62,000
65,000
59,000 59,050 13,115 10,827 13,858 11,958
62,000 62,050 13,955 11,667 14,788 12,798
65,000 65,050 14,839 12,507 15,718 13,638
59,050 59,100 13,129 10,841 13,874 11,972
62,050 62,100 13,969 11,681 14,804 12,812
65,050 65,100 14,854 12,521 15,734 13,652
59,100 59,150 13,143 10,855 13,889 11,986
62,100 62,150 13,983 11,695 14,819 12,826
65,100 65,150 14,870 12,535 15,749 13,666
59,150 59,200 13,157 10,869 13,905 12,000
62,150 62,200 13,997 11,709 14,835 12,840
65,150 65,200 14,885 12,549 15,765 13,680
59,200 59,250 13,171 10,883 13,920 12,014
62,200 62,250 14,011 11,723 14,850 12,854
65,200 65,250 14,901 12,563 15,780 13,694
59,250 59,300 13,185 10,897 13,936 12,028
62,250 62,300 14,025 11,737 14,866 12,868
65,250 65,300 14,916 12,577 15,796 13,708
59,300 59,350 13,199 10,911 13,951 12,042
62,300 62,350 14,039 11,751 14,881 12,882
65,300 65,350 14,932 12,591 15,811 13,722
59,350 59,400 13,213 10,925 13,967 12,056
62,350 62,400 14,053 11,765 14,897 12,896
65,350 65,400 14,947 12,605 15,827 13,736
59,400 59,450 13,227 10,939 13,982 12,070
62,400 62,450 14,067 11,779 14,912 12,910
65,400 65,450 14,963 12,619 15,842 13,750
59,450 59,500 13,241 10,953 13,998 12,084
62,450 62,500 14,081 11,793 14,928 12,924
65,450 65,500 14,978 12,633 15,858 13,764
59,500 59,550 13,255 10,967 14,013 12,098
62,500 62,550 14,095 11,807 14,943 12,938
65,500 65,550 14,994 12,647 15,873 13,778
59,550 59,600 13,269 10,981 14,029 12,112
62,550 62,600 14,109 11,821 14,959 12,952
65,550 65,600 15,009 12,661 15,889 13,792
59,600 59,650 13,283 10,995 14,044 12,126
62,600 62,650 14,123 11,835 14,974 12,966
65,600 65,650 15,025 12,675 15,904 13,806
59,650 59,700 13,297 11,009 14,060 12,140
62,650 62,700 14,137 11,849 14,990 12,980
65,650 65,700 15,040 12,689 15,920 13,820
59,700 59,750 13,311 11,023 14,075 12,154
62,700 62,750 14,151 11,863 15,005 12,994
65,700 65,750 15,056 12,703 15,935 13,834
59,750 59,800 13,325 11,037 14,091 12,168
62,750 62,800 14,165 11,877 15,021 13,008
65,750 65,800 15,071 12,717 15,951 13,848
59,800 59,850 13,339 11,051 14,106 12,182
62,800 62,850 14,179 11,891 15,036 13,022
65,800 65,850 15,087 12,731 15,966 13,862
59,850 59,900 13,353 11,065 14,122 12,196
62,850 62,900 14,193 11,905 15,052 13,036
65,850 65,900 15,102 12,745 15,982 13,876
59,900 59,950 13,367 11,079 14,137 12,210
62,900 62,950 14,207 11,919 15,067 13,050
65,900 65,950 15,118 12,759 15,997 13,890
59,950 60,000 13,381 11,093 14,153 12,224
62,950 63,000 14,221 11,933 15,083 13,064
65,950 66,000 15,133 12,773 16,013 13,904
60,000
63,000
66,000
60,000 60,050 13,395 11,107 14,168 12,238
63,000 63,050 14,235 11,947 15,098 13,078
66,000 66,050 15,149 12,787 16,028 13,918
60,050 60,100 13,409 11,121 14,184 12,252
63,050 63,100 14,249 11,961 15,114 13,092
66,050 66,100 15,164 12,801 16,044 13,932
60,100 60,150 13,423 11,135 14,199 12,266
63,100 63,150 14,263 11,975 15,129 13,106
66,100 66,150 15,180 12,815 16,059 13,946
60,150 60,200 13,437 11,149 14,215 12,280
63,150 63,200 14,277 11,989 15,145 13,120
66,150 66,200 15,195 12,829 16,075 13,960
60,200 60,250 13,451 11,163 14,230 12,294
63,200 63,250 14,291 12,003 15,160 13,134
66,200 66,250 15,211 12,843 16,090 13,974
60,250 60,300 13,465 11,177 14,246 12,308
63,250 63,300 14,305 12,017 15,176 13,148
66,250 66,300 15,226 12,857 16,106 13,988
60,300 60,350 13,479 11,191 14,261 12,322
63,300 63,350 14,319 12,031 15,191 13,162
66,300 66,350 15,242 12,871 16,121 14,002
60,350 60,400 13,493 11,205 14,277 12,336
63,350 63,400 14,333 12,045 15,207 13,176
66,350 66,400 15,257 12,885 16,137 14,016
60,400 60,450 13,507 11,219 14,292 12,350
63,400 63,450 14,347 12,059 15,222 13,190
66,400 66,450 15,273 12,899 16,152 14,030
60,450 60,500 13,521 11,233 14,308 12,364
63,450 63,500 14,361 12,073 15,238 13,204
66,450 66,500 15,288 12,913 16,168 14,044
60,500 60,550 13,535 11,247 14,323 12,378
63,500 63,550 14,375 12,087 15,253 13,218
66,500 66,550 15,304 12,927 16,183 14,058
60,550 60,600 13,549 11,261 14,339 12,392
63,550 63,600 14,389 12,101 15,269 13,232
66,550 66,600 15,319 12,941 16,199 14,072
60,600 60,650 13,563 11,275 14,354 12,406
63,600 63,650 14,405 12,115 15,284 13,246
66,600 66,650 15,335 12,955 16,214 14,086
60,650 60,700 13,577 11,289 14,370 12,420
63,650 63,700 14,420 12,129 15,300 13,260
66,650 66,700 15,350 12,969 16,230 14,100
60,700 60,750 13,591 11,303 14,385 12,434
63,700 63,750 14,436 12,143 15,315 13,274
66,700 66,750 15,366 12,983 16,245 14,114
60,750 60,800 13,605 11,317 14,401 12,448
63,750 63,800 14,451 12,157 15,331 13,288
66,750 66,800 15,381 12,997 16,261 14,128
60,800 60,850 13,619 11,331 14,416 12,462
63,800 63,850 14,467 12,171 15,346 13,302
66,800 66,850 15,397 13,011 16,276 14,142
60,850 60,900 13,633 11,345 14,432 12,476
63,850 63,900 14,482 12,185 15,362 13,316
66,850 66,900 15,412 13,025 16,292 14,156
60,900 60,950 13,647 11,359 14,447 12,490
63,900 63,950 14,498 12,199 15,377 13,330
66,900 66,950 15,428 13,039 16,307 14,170
60,950 61,000 13,661 11,373 14,463 12,504
63,950 64,000 14,513 12,213 15,393 13,344
66,950 67,000 15,443 13,053 16,323 14,184
61,000
64,000
67,000
61,000 61,050 13,675 11,387 14,478 12,518
64,000 64,050 14,529 12,227 15,408 13,358
67,000 67,050 15,459 13,067 16,338 14,198
61,050 61,100 13,689 11,401 14,494 12,532
64,050 64,100 14,544 12,241 15,424 13,372
67,050 67,100 15,474 13,081 16,354 14,212
61,100 61,150 13,703 11,415 14,509 12,546
64,100 64,150 14,560 12,255 15,439 13,386
67,100 67,150 15,490 13,095 16,369 14,226
61,150 61,200 13,717 11,429 14,525 12,560
64,150 64,200 14,575 12,269 15,455 13,400
67,150 67,200 15,505 13,109 16,385 14,240
61,200 61,250 13,731 11,443 14,540 12,574
64,200 64,250 14,591 12,283 15,470 13,414
67,200 67,250 15,521 13,123 16,400 14,254
61,250 61,300 13,745 11,457 14,556 12,588
64,250 64,300 14,606 12,297 15,486 13,428
67,250 67,300 15,536 13,137 16,416 14,268
61,300 61,350 13,759 11,471 14,571 12,602
64,300 64,350 14,622 12,311 15,501 13,442
67,300 67,350 15,552 13,151 16,431 14,282
61,350 61,400 13,773 11,485 14,587 12,616
64,350 64,400 14,637 12,325 15,517 13,456
67,350 67,400 15,567 13,165 16,447 14,296
61,400 61,450 13,787 11,499 14,602 12,630
64,400 64,450 14,653 12,339 15,532 13,470
67,400 67,450 15,583 13,179 16,462 14,310
61,450 61,500 13,801 11,513 14,618 12,644
64,450 64,500 14,668 12,353 15,548 13,484
67,450 67,500 15,598 13,193 16,478 14,324
61,500 61,550 13,815 11,527 14,633 12,658
64,500 64,550 14,684 12,367 15,563 13,498
67,500 67,550 15,614 13,207 16,493 14,338
61,550 61,600 13,829 11,541 14,649 12,672
64,550 64,600 14,699 12,381 15,579 13,512
67,550 67,600 15,629 13,221 16,509 14,352
61,600 61,650 13,843 11,555 14,664 12,686
64,600 64,650 14,715 12,395 15,594 13,526
67,600 67,650 15,645 13,235 16,524 14,366
61,650 61,700 13,857 11,569 14,680 12,700
64,650 64,700 14,730 12,409 15,610 13,540
67,650 67,700 15,660 13,249 16,540 14,380
61,700 61,750 13,871 11,583 14,695 12,714
64,700 64,750 14,746 12,423 15,625 13,554
67,700 67,750 15,676 13,263 16,555 14,394
61,750 61,800 13,885 11,597 14,711 12,728
64,750 64,800 14,761 12,437 15,641 13,568
67,750 67,800 15,691 13,277 16,571 14,408
61,800 61,850 13,899 11,611 14,726 12,742
64,800 64,850 14,777 12,451 15,656 13,582
67,800 67,850 15,707 13,291 16,586 14,422
61,850 61,900 13,913 11,625 14,742 12,756
64,850 64,900 14,792 12,465 15,672 13,596
67,850 67,900 15,722 13,305 16,602 14,436
61,900 61,950 13,927 11,639 14,757 12,770
64,900 64,950 14,808 12,479 15,687 13,610
67,900 67,950 15,738 13,319 16,617 14,450
61,950 62,000 13,941 11,653 14,773 12,784
64,950 65,000 14,823 12,493 15,703 13,624
67,950 68,000 15,753 13,333 16,633 14,464
* This column must also be used by a qualifying widow(er).
(Continued on page 67)
-66-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
68,000
71,000
74,000
68,000 68,050 15,769 13,347 16,648 14,478
71,000 71,050 16,699 14,187 17,578 15,318
74,000 74,050 17,629 15,027 18,508 16,158
68,050 68,100 15,784 13,361 16,664 14,492
71,050 71,100 16,714 14,201 17,594 15,332
74,050 74,100 17,644 15,041 18,524 16,172
68,100 68,150 15,800 13,375 16,679 14,506
71,100 71,150 16,730 14,215 17,609 15,346
74,100 74,150 17,660 15,055 18,539 16,186
68,150 68,200 15,815 13,389 16,695 14,520
71,150 71,200 16,745 14,229 17,625 15,360
74,150 74,200 17,675 15,069 18,555 16,200
68,200 68,250 15,831 13,403 16,710 14,534
71,200 71,250 16,761 14,243 17,640 15,374
74,200 74,250 17,691 15,083 18,570 16,214
68,250 68,300 15,846 13,417 16,726 14,548
71,250 71,300 16,776 14,257 17,656 15,388
74,250 74,300 17,706 15,097 18,586 16,228
68,300 68,350 15,862 13,431 16,741 14,562
71,300 71,350 16,792 14,271 17,671 15,402
74,300 74,350 17,722 15,111 18,601 16,242
68,350 68,400 15,877 13,445 16,757 14,576
71,350 71,400 16,807 14,285 17,687 15,416
74,350 74,400 17,737 15,125 18,617 16,256
68,400 68,450 15,893 13,459 16,772 14,590
71,400 71,450 16,823 14,299 17,702 15,430
74,400 74,450 17,753 15,139 18,632 16,270
68,450 68,500 15,908 13,473 16,788 14,604
71,450 71,500 16,838 14,313 17,718 15,444
74,450 74,500 17,768 15,153 18,648 16,284
68,500 68,550 15,924 13,487 16,803 14,618
71,500 71,550 16,854 14,327 17,733 15,458
74,500 74,550 17,784 15,167 18,663 16,298
68,550 68,600 15,939 13,501 16,819 14,632
71,550 71,600 16,869 14,341 17,749 15,472
74,550 74,600 17,799 15,181 18,679 16,312
68,600 68,650 15,955 13,515 16,834 14,646
71,600 71,650 16,885 14,355 17,764 15,486
74,600 74,650 17,815 15,195 18,694 16,326
68,650 68,700 15,970 13,529 16,850 14,660
71,650 71,700 16,900 14,369 17,780 15,500
74,650 74,700 17,830 15,209 18,710 16,340
68,700 68,750 15,986 13,543 16,865 14,674
71,700 71,750 16,916 14,383 17,795 15,514
74,700 74,750 17,846 15,223 18,725 16,354
68,750 68,800 16,001 13,557 16,881 14,688
71,750 71,800 16,931 14,397 17,811 15,528
74,750 74,800 17,861 15,237 18,741 16,368
68,800 68,850 16,017 13,571 16,896 14,702
71,800 71,850 16,947 14,411 17,826 15,542
74,800 74,850 17,877 15,251 18,756 16,382
68,850 68,900 16,032 13,585 16,912 14,716
71,850 71,900 16,962 14,425 17,842 15,556
74,850 74,900 17,892 15,265 18,772 16,396
68,900 68,950 16,048 13,599 16,927 14,730
71,900 71,950 16,978 14,439 17,857 15,570
74,900 74,950 17,908 15,279 18,787 16,410
68,950 69,000 16,063 13,613 16,943 14,744
71,950 72,000 16,993 14,453 17,873 15,584
74,950 75,000 17,923 15,293 18,803 16,424
69,000
72,000
75,000
69,000 69,050 16,079 13,627 16,958 14,758
72,000 72,050 17,009 14,467 17,888 15,598
75,000 75,050 17,939 15,307 18,818 16,438
69,050 69,100 16,094 13,641 16,974 14,772
72,050 72,100 17,024 14,481 17,904 15,612
75,050 75,100 17,954 15,321 18,834 16,452
69,100 69,150 16,110 13,655 16,989 14,786
72,100 72,150 17,040 14,495 17,919 15,626
75,100 75,150 17,970 15,335 18,849 16,466
69,150 69,200 16,125 13,669 17,005 14,800
72,150 72,200 17,055 14,509 17,935 15,640
75,150 75,200 17,985 15,349 18,865 16,480
69,200 69,250 16,141 13,683 17,020 14,814
72,200 72,250 17,071 14,523 17,950 15,654
75,200 75,250 18,001 15,363 18,880 16,494
69,250 69,300 16,156 13,697 17,036 14,828
72,250 72,300 17,086 14,537 17,966 15,668
75,250 75,300 18,016 15,377 18,896 16,508
69,300 69,350 16,172 13,711 17,051 14,842
72,300 72,350 17,102 14,551 17,981 15,682
75,300 75,350 18,032 15,391 18,911 16,522
69,350 69,400 16,187 13,725 17,067 14,856
72,350 72,400 17,117 14,565 17,997 15,696
75,350 75,400 18,047 15,405 18,927 16,536
69,400 69,450 16,203 13,739 17,082 14,870
72,400 72,450 17,133 14,579 18,012 15,710
75,400 75,450 18,063 15,419 18,942 16,550
69,450 69,500 16,218 13,753 17,098 14,884
72,450 72,500 17,148 14,593 18,028 15,724
75,450 75,500 18,078 15,433 18,958 16,564
69,500 69,550 16,234 13,767 17,113 14,898
72,500 72,550 17,164 14,607 18,043 15,738
75,500 75,550 18,094 15,447 18,973 16,578
69,550 69,600 16,249 13,781 17,129 14,912
72,550 72,600 17,179 14,621 18,059 15,752
75,550 75,600 18,109 15,461 18,989 16,592
69,600 69,650 16,265 13,795 17,144 14,926
72,600 72,650 17,195 14,635 18,074 15,766
75,600 75,650 18,125 15,475 19,004 16,606
69,650 69,700 16,280 13,809 17,160 14,940
72,650 72,700 17,210 14,649 18,090 15,780
75,650 75,700 18,140 15,489 19,020 16,620
69,700 69,750 16,296 13,823 17,175 14,954
72,700 72,750 17,226 14,663 18,105 15,794
75,700 75,750 18,156 15,503 19,035 16,634
69,750 69,800 16,311 13,837 17,191 14,968
72,750 72,800 17,241 14,677 18,121 15,808
75,750 75,800 18,171 15,517 19,051 16,648
69,800 69,850 16,327 13,851 17,206 14,982
72,800 72,850 17,257 14,691 18,136 15,822
75,800 75,850 18,187 15,531 19,066 16,662
69,850 69,900 16,342 13,865 17,222 14,996
72,850 72,900 17,272 14,705 18,152 15,836
75,850 75,900 18,202 15,545 19,082 16,676
69,900 69,950 16,358 13,879 17,237 15,010
72,900 72,950 17,288 14,719 18,167 15,850
75,900 75,950 18,218 15,559 19,097 16,690
69,950 70,000 16,373 13,893 17,253 15,024
72,950 73,000 17,303 14,733 18,183 15,864
75,950 76,000 18,233 15,573 19,113 16,704
70,000
73,000
76,000
70,000 70,050 16,389 13,907 17,268 15,038
73,000 73,050 17,319 14,747 18,198 15,878
76,000 76,050 18,249 15,587 19,128 16,718
70,050 70,100 16,404 13,921 17,284 15,052
73,050 73,100 17,334 14,761 18,214 15,892
76,050 76,100 18,264 15,601 19,144 16,732
70,100 70,150 16,420 13,935 17,299 15,066
73,100 73,150 17,350 14,775 18,229 15,906
76,100 76,150 18,280 15,615 19,159 16,746
70,150 70,200 16,435 13,949 17,315 15,080
73,150 73,200 17,365 14,789 18,245 15,920
76,150 76,200 18,295 15,629 19,175 16,760
70,200 70,250 16,451 13,963 17,330 15,094
73,200 73,250 17,381 14,803 18,260 15,934
76,200 76,250 18,311 15,643 19,190 16,774
70,250 70,300 16,466 13,977 17,346 15,108
73,250 73,300 17,396 14,817 18,276 15,948
76,250 76,300 18,326 15,657 19,206 16,788
70,300 70,350 16,482 13,991 17,361 15,122
73,300 73,350 17,412 14,831 18,291 15,962
76,300 76,350 18,342 15,671 19,221 16,802
70,350 70,400 16,497 14,005 17,377 15,136
73,350 73,400 17,427 14,845 18,307 15,976
76,350 76,400 18,357 15,685 19,237 16,816
70,400 70,450 16,513 14,019 17,392 15,150
73,400 73,450 17,443 14,859 18,322 15,990
76,400 76,450 18,373 15,699 19,252 16,830
70,450 70,500 16,528 14,033 17,408 15,164
73,450 73,500 17,458 14,873 18,338 16,004
76,450 76,500 18,388 15,713 19,268 16,844
70,500 70,550 16,544 14,047 17,423 15,178
73,500 73,550 17,474 14,887 18,353 16,018
76,500 76,550 18,404 15,727 19,283 16,858
70,550 70,600 16,559 14,061 17,439 15,192
73,550 73,600 17,489 14,901 18,369 16,032
76,550 76,600 18,419 15,741 19,299 16,872
70,600 70,650 16,575 14,075 17,454 15,206
73,600 73,650 17,505 14,915 18,384 16,046
76,600 76,650 18,435 15,755 19,314 16,886
70,650 70,700 16,590 14,089 17,470 15,220
73,650 73,700 17,520 14,929 18,400 16,060
76,650 76,700 18,450 15,769 19,330 16,900
70,700 70,750 16,606 14,103 17,485 15,234
73,700 73,750 17,536 14,943 18,415 16,074
76,700 76,750 18,466 15,783 19,345 16,914
70,750 70,800 16,621 14,117 17,501 15,248
73,750 73,800 17,551 14,957 18,431 16,088
76,750 76,800 18,481 15,797 19,361 16,928
70,800 70,850 16,637 14,131 17,516 15,262
73,800 73,850 17,567 14,971 18,446 16,102
76,800 76,850 18,497 15,811 19,376 16,942
70,850 70,900 16,652 14,145 17,532 15,276
73,850 73,900 17,582 14,985 18,462 16,116
76,850 76,900 18,512 15,825 19,392 16,956
70,900 70,950 16,668 14,159 17,547 15,290
73,900 73,950 17,598 14,999 18,477 16,130
76,900 76,950 18,528 15,839 19,407 16,970
70,950 71,000 16,683 14,173 17,563 15,304
73,950 74,000 17,613 15,013 18,493 16,144
76,950 77,000 18,543 15,853 19,423 16,984
* This column must also be used by a qualifying widow(er).
(Continued on page 68)
-67-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
77,000
80,000
83,000
77,000 77,050 18,559 15,867 19,438 16,998
80,000 80,050 19,489 16,707 20,368 17,838
83,000 83,050 20,419 17,547 21,413 18,678
77,050 77,100 18,574 15,881 19,454 17,012
80,050 80,100 19,504 16,721 20,384 17,852
83,050 83,100 20,434 17,561 21,431 18,692
77,100 77,150 18,590 15,895 19,469 17,026
80,100 80,150 19,520 16,735 20,399 17,866
83,100 83,150 20,450 17,575 21,449 18,706
77,150 77,200 18,605 15,909 19,485 17,040
80,150 80,200 19,535 16,749 20,415 17,880
83,150 83,200 20,465 17,589 21,467 18,720
77,200 77,250 18,621 15,923 19,500 17,054
80,200 80,250 19,551 16,763 20,430 17,894
83,200 83,250 20,481 17,603 21,485 18,734
77,250 77,300 18,636 15,937 19,516 17,068
80,250 80,300 19,566 16,777 20,446 17,908
83,250 83,300 20,496 17,617 21,503 18,748
77,300 77,350 18,652 15,951 19,531 17,082
80,300 80,350 19,582 16,791 20,461 17,922
83,300 83,350 20,512 17,631 21,521 18,762
77,350 77,400 18,667 15,965 19,547 17,096
80,350 80,400 19,597 16,805 20,477 17,936
83,350 83,400 20,527 17,645 21,539 18,776
77,400 77,450 18,683 15,979 19,562 17,110
80,400 80,450 19,613 16,819 20,492 17,950
83,400 83,450 20,543 17,659 21,557 18,790
77,450 77,500 18,698 15,993 19,578 17,124
80,450 80,500 19,628 16,833 20,508 17,964
83,450 83,500 20,558 17,673 21,575 18,804
77,500 77,550 18,714 16,007 19,593 17,138
80,500 80,550 19,644 16,847 20,523 17,978
83,500 83,550 20,574 17,687 21,593 18,818
77,550 77,600 18,729 16,021 19,609 17,152
80,550 80,600 19,659 16,861 20,539 17,992
83,550 83,600 20,589 17,701 21,611 18,832
77,600 77,650 18,745 16,035 19,624 17,166
80,600 80,650 19,675 16,875 20,554 18,006
83,600 83,650 20,605 17,715 21,629 18,846
77,650 77,700 18,760 16,049 19,640 17,180
80,650 80,700 19,690 16,889 20,570 18,020
83,650 83,700 20,620 17,729 21,647 18,860
77,700 77,750 18,776 16,063 19,655 17,194
80,700 80,750 19,706 16,903 20,585 18,034
83,700 83,750 20,636 17,743 21,665 18,874
77,750 77,800 18,791 16,077 19,671 17,208
80,750 80,800 19,721 16,917 20,603 18,048
83,750 83,800 20,651 17,757 21,683 18,888
77,800 77,850 18,807 16,091 19,686 17,222
80,800 80,850 19,737 16,931 20,621 18,062
83,800 83,850 20,667 17,771 21,701 18,902
77,850 77,900 18,822 16,105 19,702 17,236
80,850 80,900 19,752 16,945 20,639 18,076
83,850 83,900 20,682 17,785 21,719 18,916
77,900 77,950 18,838 16,119 19,717 17,250
80,900 80,950 19,768 16,959 20,657 18,090
83,900 83,950 20,698 17,799 21,737 18,930
77,950 78,000 18,853 16,133 19,733 17,264
80,950 81,000 19,783 16,973 20,675 18,104
83,950 84,000 20,713 17,813 21,755 18,944
78,000
81,000
84,000
78,000 78,050 18,869 16,147 19,748 17,278
81,000 81,050 19,799 16,987 20,693 18,118
84,000 84,050 20,729 17,827 21,773 18,958
78,050 78,100 18,884 16,161 19,764 17,292
81,050 81,100 19,814 17,001 20,711 18,132
84,050 84,100 20,744 17,841 21,791 18,972
78,100 78,150 18,900 16,175 19,779 17,306
81,100 81,150 19,830 17,015 20,729 18,146
84,100 84,150 20,760 17,855 21,809 18,986
78,150 78,200 18,915 16,189 19,795 17,320
81,150 81,200 19,845 17,029 20,747 18,160
84,150 84,200 20,775 17,869 21,827 19,000
78,200 78,250 18,931 16,203 19,810 17,334
81,200 81,250 19,861 17,043 20,765 18,174
84,200 84,250 20,791 17,883 21,845 19,014
78,250 78,300 18,946 16,217 19,826 17,348
81,250 81,300 19,876 17,057 20,783 18,188
84,250 84,300 20,806 17,897 21,863 19,028
78,300 78,350 18,962 16,231 19,841 17,362
81,300 81,350 19,892 17,071 20,801 18,202
84,300 84,350 20,822 17,911 21,881 19,042
78,350 78,400 18,977 16,245 19,857 17,376
81,350 81,400 19,907 17,085 20,819 18,216
84,350 84,400 20,837 17,925 21,899 19,056
78,400 78,450 18,993 16,259 19,872 17,390
81,400 81,450 19,923 17,099 20,837 18,230
84,400 84,450 20,853 17,939 21,917 19,070
78,450 78,500 19,008 16,273 19,888 17,404
81,450 81,500 19,938 17,113 20,855 18,244
84,450 84,500 20,868 17,953 21,935 19,084
78,500 78,550 19,024 16,287 19,903 17,418
81,500 81,550 19,954 17,127 20,873 18,258
84,500 84,550 20,884 17,967 21,953 19,098
78,550 78,600 19,039 16,301 19,919 17,432
81,550 81,600 19,969 17,141 20,891 18,272
84,550 84,600 20,899 17,981 21,971 19,112
78,600 78,650 19,055 16,315 19,934 17,446
81,600 81,650 19,985 17,155 20,909 18,286
84,600 84,650 20,915 17,995 21,989 19,126
78,650 78,700 19,070 16,329 19,950 17,460
81,650 81,700 20,000 17,169 20,927 18,300
84,650 84,700 20,930 18,009 22,007 19,140
78,700 78,750 19,086 16,343 19,965 17,474
81,700 81,750 20,016 17,183 20,945 18,314
84,700 84,750 20,946 18,023 22,025 19,154
78,750 78,800 19,101 16,357 19,981 17,488
81,750 81,800 20,031 17,197 20,963 18,328
84,750 84,800 20,961 18,037 22,043 19,168
78,800 78,850 19,117 16,371 19,996 17,502
81,800 81,850 20,047 17,211 20,981 18,342
84,800 84,850 20,977 18,051 22,061 19,182
78,850 78,900 19,132 16,385 20,012 17,516
81,850 81,900 20,062 17,225 20,999 18,356
84,850 84,900 20,992 18,065 22,079 19,196
78,900 78,950 19,148 16,399 20,027 17,530
81,900 81,950 20,078 17,239 21,017 18,370
84,900 84,950 21,008 18,079 22,097 19,210
78,950 79,000 19,163 16,413 20,043 17,544
81,950 82,000 20,093 17,253 21,035 18,384
84,950 85,000 21,023 18,093 22,115 19,224
79,000
82,000
85,000
79,000 79,050 19,179 16,427 20,058 17,558
82,000 82,050 20,109 17,267 21,053 18,398
85,000 85,050 21,039 18,107 22,133 19,238
79,050 79,100 19,194 16,441 20,074 17,572
82,050 82,100 20,124 17,281 21,071 18,412
85,050 85,100 21,054 18,121 22,151 19,252
79,100 79,150 19,210 16,455 20,089 17,586
82,100 82,150 20,140 17,295 21,089 18,426
85,100 85,150 21,070 18,135 22,169 19,266
79,150 79,200 19,225 16,469 20,105 17,600
82,150 82,200 20,155 17,309 21,107 18,440
85,150 85,200 21,085 18,149 22,187 19,280
79,200 79,250 19,241 16,483 20,120 17,614
82,200 82,250 20,171 17,323 21,125 18,454
85,200 85,250 21,101 18,163 22,205 19,294
79,250 79,300 19,256 16,497 20,136 17,628
82,250 82,300 20,186 17,337 21,143 18,468
85,250 85,300 21,116 18,177 22,223 19,308
79,300 79,350 19,272 16,511 20,151 17,642
82,300 82,350 20,202 17,351 21,161 18,482
85,300 85,350 21,132 18,191 22,241 19,322
79,350 79,400 19,287 16,525 20,167 17,656
82,350 82,400 20,217 17,365 21,179 18,496
85,350 85,400 21,147 18,205 22,259 19,336
79,400 79,450 19,303 16,539 20,182 17,670
82,400 82,450 20,233 17,379 21,197 18,510
85,400 85,450 21,163 18,219 22,277 19,350
79,450 79,500 19,318 16,553 20,198 17,684
82,450 82,500 20,248 17,393 21,215 18,524
85,450 85,500 21,178 18,233 22,295 19,364
79,500 79,550 19,334 16,567 20,213 17,698
82,500 82,550 20,264 17,407 21,233 18,538
85,500 85,550 21,194 18,247 22,313 19,378
79,550 79,600 19,349 16,581 20,229 17,712
82,550 82,600 20,279 17,421 21,251 18,552
85,550 85,600 21,209 18,261 22,331 19,392
79,600 79,650 19,365 16,595 20,244 17,726
82,600 82,650 20,295 17,435 21,269 18,566
85,600 85,650 21,225 18,275 22,349 19,406
79,650 79,700 19,380 16,609 20,260 17,740
82,650 82,700 20,310 17,449 21,287 18,580
85,650 85,700 21,240 18,289 22,367 19,420
79,700 79,750 19,396 16,623 20,275 17,754
82,700 82,750 20,326 17,463 21,305 18,594
85,700 85,750 21,256 18,303 22,385 19,434
79,750 79,800 19,411 16,637 20,291 17,768
82,750 82,800 20,341 17,477 21,323 18,608
85,750 85,800 21,271 18,317 22,403 19,448
79,800 79,850 19,427 16,651 20,306 17,782
82,800 82,850 20,357 17,491 21,341 18,622
85,800 85,850 21,287 18,331 22,421 19,462
79,850 79,900 19,442 16,665 20,322 17,796
82,850 82,900 20,372 17,505 21,359 18,636
85,850 85,900 21,302 18,345 22,439 19,476
79,900 79,950 19,458 16,679 20,337 17,810
82,900 82,950 20,388 17,519 21,377 18,650
85,900 85,950 21,318 18,359 22,457 19,490
79,950 80,000 19,473 16,693 20,353 17,824
82,950 83,000 20,403 17,533 21,395 18,664
85,950 86,000 21,333 18,373 22,475 19,504
* This column must also be used by a qualifying widow(er).
(Continued on page 69)
-68-

2000 Tax Table--Continued
If line 39
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
At
But
Single
Married Married Head
least
less
filing
filing
of a
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
Your tax is--
86,000
89,000
92,000
86,000 86,050 21,349 18,387 22,493 19,518
89,000 89,050 22,279 19,227 23,573 20,358
92,000 92,050 23,209 20,067 24,653 21,234
86,050 86,100 21,364 18,401 22,511 19,532
89,050 89,100 22,294 19,241 23,591 20,372
92,050 92,100 23,224 20,081 24,671 21,250
86,100 86,150 21,380 18,415 22,529 19,546
89,100 89,150 22,310 19,255 23,609 20,386
92,100 92,150 23,240 20,095 24,689 21,265
86,150 86,200 21,395 18,429 22,547 19,560
89,150 89,200 22,325 19,269 23,627 20,400
92,150 92,200 23,255 20,109 24,707 21,281
86,200 86,250 21,411 18,443 22,565 19,574
89,200 89,250 22,341 19,283 23,645 20,414
92,200 92,250 23,271 20,123 24,725 21,296
86,250 86,300 21,426 18,457 22,583 19,588
89,250 89,300 22,356 19,297 23,663 20,428
92,250 92,300 23,286 20,137 24,743 21,312
86,300 86,350 21,442 18,471 22,601 19,602
89,300 89,350 22,372 19,311 23,681 20,442
92,300 92,350 23,302 20,151 24,761 21,327
86,350 86,400 21,457 18,485 22,619 19,616
89,350 89,400 22,387 19,325 23,699 20,456
92,350 92,400 23,317 20,165 24,779 21,343
86,400 86,450 21,473 18,499 22,637 19,630
89,400 89,450 22,403 19,339 23,717 20,470
92,400 92,450 23,333 20,179 24,797 21,358
86,450 86,500 21,488 18,513 22,655 19,644
89,450 89,500 22,418 19,353 23,735 20,484
92,450 92,500 23,348 20,193 24,815 21,374
86,500 86,550 21,504 18,527 22,673 19,658
89,500 89,550 22,434 19,367 23,753 20,498
92,500 92,550 23,364 20,207 24,833 21,389
86,550 86,600 21,519 18,541 22,691 19,672
89,550 89,600 22,449 19,381 23,771 20,512
92,550 92,600 23,379 20,221 24,851 21,405
86,600 86,650 21,535 18,555 22,709 19,686
89,600 89,650 22,465 19,395 23,789 20,526
92,600 92,650 23,395 20,235 24,869 21,420
86,650 86,700 21,550 18,569 22,727 19,700
89,650 89,700 22,480 19,409 23,807 20,540
92,650 92,700 23,410 20,249 24,887 21,436
86,700 86,750 21,566 18,583 22,745 19,714
89,700 89,750 22,496 19,423 23,825 20,554
92,700 92,750 23,426 20,263 24,905 21,451
86,750 86,800 21,581 18,597 22,763 19,728
89,750 89,800 22,511 19,437 23,843 20,568
92,750 92,800 23,441 20,277 24,923 21,467
86,800 86,850 21,597 18,611 22,781 19,742
89,800 89,850 22,527 19,451 23,861 20,582
92,800 92,850 23,457 20,291 24,941 21,482
86,850 86,900 21,612 18,625 22,799 19,756
89,850 89,900 22,542 19,465 23,879 20,596
92,850 92,900 23,472 20,305 24,959 21,498
86,900 86,950 21,628 18,639 22,817 19,770
89,900 89,950 22,558 19,479 23,897 20,610
92,900 92,950 23,488 20,319 24,977 21,513
86,950 87,000 21,643 18,653 22,835 19,784
89,950 90,000 22,573 19,493 23,915 20,624
92,950 93,000 23,503 20,333 24,995 21,529
87,000
90,000
93,000
87,000 87,050 21,659 18,667 22,853 19,798
90,000 90,050 22,589 19,507 23,933 20,638
93,000 93,050 23,519 20,347 25,013 21,544
87,050 87,100 21,674 18,681 22,871 19,812
90,050 90,100 22,604 19,521 23,951 20,652
93,050 93,100 23,534 20,361 25,031 21,560
87,100 87,150 21,690 18,695 22,889 19,826
90,100 90,150 22,620 19,535 23,969 20,666
93,100 93,150 23,550 20,375 25,049 21,575
87,150 87,200 21,705 18,709 22,907 19,840
90,150 90,200 22,635 19,549 23,987 20,680
93,150 93,200 23,565 20,389 25,067 21,591
87,200 87,250 21,721 18,723 22,925 19,854
90,200 90,250 22,651 19,563 24,005 20,694
93,200 93,250 23,581 20,403 25,085 21,606
87,250 87,300 21,736 18,737 22,943 19,868
90,250 90,300 22,666 19,577 24,023 20,708
93,250 93,300 23,596 20,417 25,103 21,622
87,300 87,350 21,752 18,751 22,961 19,882
90,300 90,350 22,682 19,591 24,041 20,722
93,300 93,350 23,612 20,431 25,121 21,637
87,350 87,400 21,767 18,765 22,979 19,896
90,350 90,400 22,697 19,605 24,059 20,736
93,350 93,400 23,627 20,445 25,139 21,653
87,400 87,450 21,783 18,779 22,997 19,910
90,400 90,450 22,713 19,619 24,077 20,750
93,400 93,450 23,643 20,459 25,157 21,668
87,450 87,500 21,798 18,793 23,015 19,924
90,450 90,500 22,728 19,633 24,095 20,764
93,450 93,500 23,658 20,473 25,175 21,684
87,500 87,550 21,814 18,807 23,033 19,938
90,500 90,550 22,744 19,647 24,113 20,778
93,500 93,550 23,674 20,487 25,193 21,699
87,550 87,600 21,829 18,821 23,051 19,952
90,550 90,600 22,759 19,661 24,131 20,792
93,550 93,600 23,689 20,501 25,211 21,715
87,600 87,650 21,845 18,835 23,069 19,966
90,600 90,650 22,775 19,675 24,149 20,806
93,600 93,650 23,705 20,515 25,229 21,730
87,650 87,700 21,860 18,849 23,087 19,980
90,650 90,700 22,790 19,689 24,167 20,820
93,650 93,700 23,720 20,529 25,247 21,746
87,700 87,750 21,876 18,863 23,105 19,994
90,700 90,750 22,806 19,703 24,185 20,834
93,700 93,750 23,736 20,543 25,265 21,761
87,750 87,800 21,891 18,877 23,123 20,008
90,750 90,800 22,821 19,717 24,203 20,848
93,750 93,800 23,751 20,557 25,283 21,777
87,800 87,850 21,907 18,891 23,141 20,022
90,800 90,850 22,837 19,731 24,221 20,862
93,800 93,850 23,767 20,571 25,301 21,792
87,850 87,900 21,922 18,905 23,159 20,036
90,850 90,900 22,852 19,745 24,239 20,878
93,850 93,900 23,782 20,585 25,319 21,808
87,900 87,950 21,938 18,919 23,177 20,050
90,900 90,950 22,868 19,759 24,257 20,893
93,900 93,950 23,798 20,599 25,337 21,823
87,950 88,000 21,953 18,933 23,195 20,064
90,950 91,000 22,883 19,773 24,275 20,909
93,950 94,000 23,813 20,613 25,355 21,839
88,000
91,000
94,000
88,000 88,050 21,969 18,947 23,213 20,078
91,000 91,050 22,899 19,787 24,293 20,924
94,000 94,050 23,829 20,627 25,373 21,854
88,050 88,100 21,984 18,961 23,231 20,092
91,050 91,100 22,914 19,801 24,311 20,940
94,050 94,100 23,844 20,641 25,391 21,870
88,100 88,150 22,000 18,975 23,249 20,106
91,100 91,150 22,930 19,815 24,329 20,955
94,100 94,150 23,860 20,655 25,409 21,885
88,150 88,200 22,015 18,989 23,267 20,120
91,150 91,200 22,945 19,829 24,347 20,971
94,150 94,200 23,875 20,669 25,427 21,901
88,200 88,250 22,031 19,003 23,285 20,134
91,200 91,250 22,961 19,843 24,365 20,986
94,200 94,250 23,891 20,683 25,445 21,916
88,250 88,300 22,046 19,017 23,303 20,148
91,250 91,300 22,976 19,857 24,383 21,002
94,250 94,300 23,906 20,697 25,463 21,932
88,300 88,350 22,062 19,031 23,321 20,162
91,300 91,350 22,992 19,871 24,401 21,017
94,300 94,350 23,922 20,711 25,481 21,947
88,350 88,400 22,077 19,045 23,339 20,176
91,350 91,400 23,007 19,885 24,419 21,033
94,350 94,400 23,937 20,725 25,499 21,963
88,400 88,450 22,093 19,059 23,357 20,190
91,400 91,450 23,023 19,899 24,437 21,048
94,400 94,450 23,953 20,739 25,517 21,978
88,450 88,500 22,108 19,073 23,375 20,204
91,450 91,500 23,038 19,913 24,455 21,064
94,450 94,500 23,968 20,753 25,535 21,994
88,500 88,550 22,124 19,087 23,393 20,218
91,500 91,550 23,054 19,927 24,473 21,079
94,500 94,550 23,984 20,767 25,553 22,009
88,550 88,600 22,139 19,101 23,411 20,232
91,550 91,600 23,069 19,941 24,491 21,095
94,550 94,600 23,999 20,781 25,571 22,025
88,600 88,650 22,155 19,115 23,429 20,246
91,600 91,650 23,085 19,955 24,509 21,110
94,600 94,650 24,015 20,795 25,589 22,040
88,650 88,700 22,170 19,129 23,447 20,260
91,650 91,700 23,100 19,969 24,527 21,126
94,650 94,700 24,030 20,809 25,607 22,056
88,700 88,750 22,186 19,143 23,465 20,274
91,700 91,750 23,116 19,983 24,545 21,141
94,700 94,750 24,046 20,823 25,625 22,071
88,750 88,800 22,201 19,157 23,483 20,288
91,750 91,800 23,131 19,997 24,563 21,157
94,750 94,800 24,061 20,837 25,643 22,087
88,800 88,850 22,217 19,171 23,501 20,302
91,800 91,850 23,147 20,011 24,581 21,172
94,800 94,850 24,077 20,851 25,661 22,102
88,850 88,900 22,232 19,185 23,519 20,316
91,850 91,900 23,162 20,025 24,599 21,188
94,850 94,900 24,092 20,865 25,679 22,118
88,900 88,950 22,248 19,199 23,537 20,330
91,900 91,950 23,178 20,039 24,617 21,203
94,900 94,950 24,108 20,879 25,697 22,133
88,950 89,000 22,263 19,213 23,555 20,344
91,950 92,000 23,193 20,053 24,635 21,219
94,950 95,000 24,123 20,893 25,715 22,149
* This column must also be used by a qualifying widow(er).
(Continued on page 70)
-69-

2000 Tax Table--Continued
If line 39
If line 39
(taxable
And you are--
(taxable
And you are--
income) is--
income) is--
At
But
Single
Married Married
Head
At
But
Single
Married Married
Head
least
less
filing
filing
of a
least
less
filing
filing
of a
than
jointly
sepa-
house-
than
jointly
sepa-
house-
*
rately
hold
*
rately
hold
Your tax is--
Your tax is--
95,000
98,000
95,000 95,050 24,139 20,907 25,733 22,164
98,000 98,050 25,069 21,747 26,813 23,094
95,050 95,100 24,154 20,921 25,751 22,180
98,050 98,100 25,084 21,761 26,831 23,110
95,100 95,150 24,170 20,935 25,769 22,195
98,100 98,150 25,100 21,775 26,849 23,125
95,150 95,200 24,185 20,949 25,787 22,211
98,150 98,200 25,115 21,789 26,867 23,141
95,200 95,250 24,201 20,963 25,805 22,226
98,200 98,250 25,131 21,803 26,885 23,156
95,250 95,300 24,216 20,977 25,823 22,242
98,250 98,300 25,146 21,817 26,903 23,172
95,300 95,350 24,232 20,991 25,841 22,257
98,300 98,350 25,162 21,831 26,921 23,187
95,350 95,400 24,247 21,005 25,859 22,273
98,350 98,400 25,177 21,845 26,939 23,203
95,400 95,450 24,263 21,019 25,877 22,288
98,400 98,450 25,193 21,859 26,957 23,218
95,450 95,500 24,278 21,033 25,895 22,304
98,450 98,500 25,208 21,873 26,975 23,234
95,500 95,550 24,294 21,047 25,913 22,319
98,500 98,550 25,224 21,887 26,993 23,249
95,550 95,600 24,309 21,061 25,931 22,335
98,550 98,600 25,239 21,901 27,011 23,265
95,600 95,650 24,325 21,075 25,949 22,350
98,600 98,650 25,255 21,915 27,029 23,280
95,650 95,700 24,340 21,089 25,967 22,366
98,650 98,700 25,270 21,929 27,047 23,296
95,700 95,750 24,356 21,103 25,985 22,381
98,700 98,750 25,286 21,943 27,065 23,311
95,750 95,800 24,371 21,117 26,003 22,397
98,750 98,800 25,301 21,957 27,083 23,327
95,800 95,850 24,387 21,131 26,021 22,412
98,800 98,850 25,317 21,971 27,101 23,342
95,850 95,900 24,402 21,145 26,039 22,428
98,850 98,900 25,332 21,985 27,119 23,358
95,900 95,950 24,418 21,159 26,057 22,443
98,900 98,950 25,348 21,999 27,137 23,373
95,950 96,000 24,433 21,173 26,075 22,459
98,950 99,000 25,363 22,013 27,155 23,389
96,000
99,000
96,000 96,050 24,449 21,187 26,093 22,474
99,000 99,050 25,379 22,027 27,173 23,404
96,050 96,100 24,464 21,201 26,111 22,490
99,050 99,100 25,394 22,041 27,191 23,420
96,100 96,150 24,480 21,215 26,129 22,505
99,100 99,150 25,410 22,055 27,209 23,435
96,150 96,200 24,495 21,229 26,147 22,521
99,150 99,200 25,425 22,069 27,227 23,451
96,200 96,250 24,511 21,243 26,165 22,536
99,200 99,250 25,441 22,083 27,245 23,466
96,250 96,300 24,526 21,257 26,183 22,552
99,250 99,300 25,456 22,097 27,263 23,482
96,300 96,350 24,542 21,271 26,201 22,567
99,300 99,350 25,472 22,111 27,281 23,497
96,350 96,400 24,557 21,285 26,219 22,583
99,350 99,400 25,487 22,125 27,299 23,513
96,400 96,450 24,573 21,299 26,237 22,598
99,400 99,450 25,503 22,139 27,317 23,528
96,450 96,500 24,588 21,313 26,255 22,614
99,450 99,500 25,518 22,153 27,335 23,544
96,500 96,550 24,604 21,327 26,273 22,629
99,500 99,550 25,534 22,167 27,353 23,559
96,550 96,600 24,619 21,341 26,291 22,645
99,550 99,600 25,549 22,181 27,371 23,575
96,600 96,650 24,635 21,355 26,309 22,660
99,600 99,650 25,565 22,195 27,389 23,590
96,650 96,700 24,650 21,369 26,327 22,676
99,650 99,700 25,580 22,209 27,407 23,606
96,700 96,750 24,666 21,383 26,345 22,691
99,700 99,750 25,596 22,223 27,425 23,621
96,750 96,800 24,681 21,397 26,363 22,707
99,750 99,800 25,611 22,237 27,443 23,637
96,800 96,850 24,697 21,411 26,381 22,722
99,800 99,850 25,627 22,251 27,461 23,652
96,850 96,900 24,712 21,425 26,399 22,738
99,850 99,900 25,642 22,265 27,479 23,668
96,900 96,950 24,728 21,439 26,417 22,753
99,900 99,950 25,658 22,279 27,497 23,683
96,950 97,000 24,743 21,453 26,435 22,769
99,950 100,000 25,673 22,293 27,515 23,699
97,000
97,000 97,050 24,759 21,467 26,453 22,784
97,050 97,100 24,774 21,481 26,471 22,800
97,100 97,150 24,790 21,495 26,489 22,815
97,150 97,200 24,805 21,509 26,507 22,831
97,200 97,250 24,821 21,523 26,525 22,846
97,250 97,300 24,836 21,537 26,543 22,862
$100,000
97,300 97,350 24,852 21,551 26,561 22,877
or over --
97,350 97,400 24,867 21,565 26,579 22,893
97,400 97,450 24,883 21,579 26,597 22,908
use the
97,450 97,500 24,898 21,593 26,615 22,924
Tax Rate
97,500 97,550 24,914 21,607 26,633 22,939
97,550 97,600 24,929 21,621 26,651 22,955
Schedules
97,600 97,650 24,945 21,635 26,669 22,970
on page 71
97,650 97,700 24,960 21,649 26,687 22,986
97,700 97,750 24,976 21,663 26,705 23,001
97,750 97,800 24,991 21,677 26,723 23,017
97,800 97,850 25,007 21,691 26,741 23,032
97,850 97,900 25,022 21,705 26,759 23,048
97,900 97,950 25,038 21,719 26,777 23,063
97,950 98,000 25,053 21,733 26,795 23,079
* This column must also be used by a qualifying widow(er).
-70-

Instructions for Schedules to Form 1040
2000
Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your
Federal income tax will be less if you take the larger of your itemized deductions or your
Instructions for
standard deduction.
If you itemize, you may deduct a part of your medical and dental expenses and unreim-
Schedule A,
bursed employee business expenses, and amounts you paid for certain taxes, interest,
contributions, and miscellaneous expenses. You may also deduct certain casualty and theft
losses.
Itemized
Do not include on Schedule A items deducted elsewhere, such as on
Deductions
Schedule C, C-EZ, E, or F.
Nursing help (including your share of premiums were paid. See the following chart
Medical and Dental
the employment taxes paid). If you paid
for details.
someone to do both nursing and housework,
Expenses
you may deduct only the cost of the nursing
IF the person
THEN the most
help.
was, at the end
you may deduct
You may deduct only the part of your med-
Hospital care (including meals and
of 2000, age . . .
is . . .
ical and dental expenses that exceeds 7.5%
lodging), clinic costs, and lab fees.
of the amount on Form 1040, line 34.
40 or under
$ 220
Qualified long-term care services (see
Pub. 502 discusses the types of expenses
Pub. 502).
4150
$ 410
that may and may not be deducted. It also
The supplemental part of Medicare in-
explains when you may deduct capital ex-
surance (Medicare B).
5160
$ 820
penses and special care expenses for disa-
bled persons.
A program to stop smoking and for
6170
$ 2,200
prescription medicines to alleviate nicotine
If you received a distribution
withdrawal.
71 or older
$ 2,750
from your medical savings ac-
Medical treatment at a center for drug
count in 2000, see Pub. 969 to
or alcohol addiction.
figure your deduction.
Examples of Medical and Dental
Medical aids such as eyeglasses, con- Payments You May Not Deduct
Examples of Medical and Dental
tact lenses, hearing aids, braces, crutches,
The basic cost of Medicare insurance
Payments You May Deduct
wheelchairs, and guide dogs, including the
(Medicare A).
cost of maintaining them.
To the extent you were not reimbursed, you

may deduct what you paid for:
Surgery to improve vision including
If you were 65 or older but not

radial keratotomy or other laser eye surgery.
Insurance premiums for medical and
entitled to social security bene-

dental care, including premiums for quali-
Lodging expenses (but not meals)
fits, you may deduct premiums
fied long-term care contracts as defined in
while away from home to receive medical
you voluntarily paid for Medi-
Pub. 502. But see Limit on Long-Term
care in a hospital or a medical care facility
care A coverage.
Care Premiums You May Deduct on this
related to a hospital. Do not include more
page. Reduce the insurance premiums by
than $50 a night for each eligible person.
Cosmetic surgery unless it was neces-
any self-employed health insurance deduc-
Ambulance service and other travel sary to improve a deformity related to a
tion you claimed on Form 1040, line 28.
costs to get medical care. If you used your
congenital abnormality, an injury from an
own car, you may claim what you spent for
accident or trauma, or a disfiguring disease.
You cannot deduct insurance
gas and oil to go to and from the place you
Life insurance or income protection
premiums paid with pretax dol-
received the care; or you may claim 10 cents
policies.
lars because the premiums are
a mile. Add parking and tolls to the amount
The Medicare tax on your wages and
not included in box 1 of your
you claim under either method.
tips or the Medicare tax paid as part of the
W-2 form(s).
self-employment tax or household employ-
Note. Certain medical expenses paid out of
ment taxes.
Prescription medicines or insulin.
a deceased taxpayer's estate may be claimed
Nursing care for a healthy baby. But
Medical doctors, osteopathic doctors, on the deceased taxpayer's final return. See you may be able to take a credit for the
dentists, eye doctors, podiatrists, chiroprac-
Pub. 502 for details.
amount you paid. See the instructions for
tors, psychiatrists, psychologists, physical
Form 1040, line 44.
therapists, occupational therapists, acupunc-
Limit on Long-Term Care Premiums You
Illegal operations or drugs.
turists, and psychoanalysts (medical care
May Deduct. The amount you may deduct
Nonprescription medicines (including
only).
for qualified long-term care contracts (as
nicotine gum and certain nicotine patches).
Medical examinations, X-ray and lab- defined in Pub. 502) depends on the age, at
Travel your doctor told you to take for
oratory services, insulin treatment, and
the end of 2000, of the person for whom the
rest or a change.
whirlpool baths your doctor ordered.
Funeral, burial, or cremation costs.
A-1
Cat. No. 24328L

ly on property throughout the community,
Line 1
and the proceeds must be used for general
Taxes You Paid
community or governmental purposes. Pub.
Medical and Dental Expenses
530 explains the deductions homeowners
Taxes You May Not Deduct
may take.
Enter the total of your medical and dental
expenses (see page A-1), after you reduce
Federal income and excise taxes.
Do not include the following amounts on
these expenses by any payments received
Social security, Medicare, Federal un- line 6.
from insurance or other sources. See Reim-
employment (FUTA), and railroad retire-
Itemized charges for services to specif-
bursements below.
ment (RRTA) taxes.
ic property or persons (for example, a $20
Do not forget to include insur-
Customs duties.
monthly charge per house for trash collec-
ance premiums you paid for med-

tion, a $5 charge for every 1,000 gallons of
Federal estate and gift taxes. But see
ical and dental care. But if you
water consumed, or a flat charge for mowing
the instructions for line 27 on page A-6.
claimed the self-employed health
a lawn that had grown higher than permitted
Certain state and local taxes, including:
insurance deduction on Form 1040, line 28,
under a local ordinance).
general sales tax, tax on gasoline, car in-
reduce the premiums by the amount on
Charges for improvements that tend to
spection fees, assessments for sidewalks or
line 28.
increase the value of your property (for ex-
other improvements to your property, tax
ample, an assessment to build a new side-
you paid for someone else, and license fees
walk). The cost of a property improvement
Whose Medical and Dental Expenses Can
(marriage, driver's, dog, etc.).
is added to the basis of the property. How-
You Include? You may include medical
ever, a charge is deductible if it is used only
and dental bills you paid for:
to maintain an existing public facility in ser-
Yourself and your spouse.
Line 5
vice (for example, a charge to repair an ex-
All dependents you claim on your
isting sidewalk, and any interest included in
State and Local Income Taxes
return.
that charge).
Your child whom you do not claim as Include on this line the state and local
If your mortgage payments include your
a dependent because of the rules explained
income taxes listed below.
real estate taxes, you may deduct only the
in Pub. 501 for children of divorced or sep-

amount the mortgage company actually paid
State and local income taxes withheld
arated parents.
to the taxing authority in 2000.
from your salary during 2000. Your W-2
Any person you could have claimed as form(s) will show these amounts. Forms
If you sold your home in 2000, any real
a dependent on your return if that person
W-2G, 1099-G, 1099-R, and 1099-MISC
estate tax charged to the buyer should be
had not received $2,800 or more of gross
may also show state and local income taxes
shown on your settlement statement and in
income or had not filed a joint return.
withheld.
box 5 of any Form 1099-S you received.
This amount is considered a refund of real
Example. You provided over half of your
State and local income taxes paid in estate taxes. See Refunds and Rebates
mother's support but may not claim her as
2000 for a prior year, such as taxes paid
next. Any real estate taxes you paid at clos-
a dependent because she received wages of
with your 1999 state or local income tax
ing should be shown on your settlement
$2,800 in 2000. You may include on line 1
return. Do not include penalties or interest.
statement.
any medical and dental expenses you paid
State and local estimated tax payments
in 2000 for your mother.
made during 2000, including any part of a
Refunds and Rebates. If you received a
prior year refund that you chose to have
refund or rebate in 2000 of real estate taxes
Reimbursements. If your insurance compa-
credited to your 2000 state or local income
you paid in 2000, reduce your deduction by
ny paid the provider directly for part of your
taxes.
the amount of the refund or rebate. If you
expenses, and you paid only the amount that
Mandatory contributions you made to received a refund or rebate in 2000 of real
remained, include on line 1 only the amount
the California, New Jersey, or New York
estate taxes you paid in an earlier year, do
you paid. If you received a reimbursement
Nonoccupational Disability Benefit Fund,
not reduce your deduction by this amount.
in 2000 for medical or dental expenses you
Rhode Island Temporary Disability Benefit
Instead, you must include the refund or
paid in 2000, reduce your 2000 expenses by
Fund, or Washington State Supplemental
rebate in income on Form 1040, line 21, if
this amount. If you received a reimburse-
Workmen's Compensation Fund.
you deducted the real estate taxes in the
ment in 2000 for prior year medical or dental
earlier year and the deduction reduced your
expenses, do not reduce your 2000 expenses
Do not reduce your deduction by:
tax. Pub. 525 tells you how to figure the
by this amount. But if you deducted the
Any state or local income tax refund or amount to include in income.
expenses in the earlier year and the deduc-
credit you expect to receive for 2000 or
tion reduced your tax, you must include the
Any refund of, or credit for, prior year
reimbursement in income on Form 1040,
state and local income taxes you actually
line 21. See Pub. 502 for details on how to
Line 7
received in 2000. Instead, see the instruc-
figure the amount to include.
tions for Form 1040, line 10.
Personal Property Taxes
Cafeteria Plans. Do not include on line 1
Enter personal property tax you paid, but
insurance premiums paid by an employer-
Line 6
only if it is based on value alone and it is
sponsored health insurance plan (cafeteria
charged on a yearly basis.
plan) unless the premiums are included in
Real Estate Taxes
box 1 of your W-2 form(s). Also, do not
Example. You paid a yearly fee for the
include any other medical and dental ex-
Include taxes (state, local, or foreign) you
registration of your car. Part of the fee was
penses paid by the plan unless the amount
paid on real estate you own that was not
based on the car's value and part was based
paid is included in box 1 of your W-2
used for business, but only if the taxes are
on its weight. You may deduct only the part
form(s).
based on the assessed value of the property.
of the fee that was based on the car's value.
Also, the assessment must be made uniform-
A-2

2000. The limit is $50,000 if married filing
Line 8
separately. An example of this type of mort-
Line 12
gage is a home equity loan used to pay off
Other Taxes
credit card bills, buy a car, or pay tuition.
Points Not Reported on Form 1098
If you had any deductible tax not listed on
2. You took out any mortgages after Oc-
Points are shown on your settlement state-
line 5, 6, or 7, list the type and amount of
tober 13, 1987, and used the proceeds to
ment. Points you paid only to borrow money
tax. Enter only one total on line 8. Include
buy, build, or improve your home, and these
are generally deductible over the life of the
on this line income tax you paid to a foreign
mortgages plus any mortgages you took out
loan. See Pub. 936 to figure the amount you
country or U.S. possession.
on or before October 13, 1987, totaled over
may deduct. Points paid for other purposes,
$1 million at any time during 2000. The
You may want to take a credit
such as for a lender's services, are not de-
limit is $500,000 if married filing separate-
for the foreign tax instead of a
ductible.
ly.
deduction. See the instructions
Refinancing. Generally, you must deduct
for Form 1040, line 43, for
If the total amount of all mort-
points you paid to refinance a mortgage over
details.
gages is more than the fair
market value of the home, addi-
the life of the loan. This is true even if the
tional limits apply. See Pub. 936.
new mortgage is secured by your main
home.
Interest You Paid
Line 10
If you used part of the proceeds to im-
prove your main home, you may be able
Whether your interest expense is treated as
Enter on line 10 mortgage interest and points
to deduct the part of the points related to the
investment interest, personal interest, or
reported to you on Form 1098. If this form
improvement in the year paid. See Pub. 936
business interest depends on how and when
shows any refund of overpaid interest, do
for details.
you used the loan proceeds. See Pub. 535
not reduce your deduction by the refund.
for details.
Instead, see the instructions for Form 1040,
If you paid off a mortgage early,
line 21.
deduct any remaining points in
In general, if you paid interest in 2000
the year you paid off the mort-
that applies to any period after 2000, you
If you paid more interest to the recipient
gage.
may deduct only amounts that apply for
than is shown on Form 1098, see Pub. 936
2000.
to find out if you can deduct the additional
interest. If you can, attach a statement ex-
plaining the difference and enter "See at-
Line 13
Lines 10 and 11
tached" next to line 10.
Investment Interest
Note. If you are claiming the mortgage in-
Home Mortgage Interest
Investment interest is interest paid on money
terest credit (see the instructions for Form
you borrowed that is allocable to property
A home mortgage is any loan that is se-
1040, line 49), subtract the amount shown
held for investment. It does not include any
cured by your main home or second home.
on line 3 of Form 8396 from the total de-
interest allocable to passive activities or to
It includes first and second mortgages, home
ductible interest you paid on your home
securities that generate tax-exempt income.
equity loans, and refinanced mortgages.
mortgage. Enter the result on line 10.
Complete and attach Form 4952 to figure
A home may be a house, condominium,
Line 11
your deduction.
cooperative, mobile home, boat, or similar
property. It must provide basic living ac-
If you did not receive a Form 1098 from the
Exception. You do not have to file Form
commodations including sleeping space,
recipient, report your deductible mortgage
4952 if all three of the following apply.
toilet, and cooking facilities.
interest on line 11.
1. Your investment interest expense is not
If you bought your home from the recip-
Limit on Home Mortgage Interest. If you
more than your investment income from in-
ient, be sure to show that recipient's name,
took out any mortgages after October 13,
terest and ordinary dividends.
identifying no., and address on the dotted
1987, your deduction may be limited. Any
2. You have no other deductible invest-
lines next to line 11. If the recipient is an
additional amounts borrowed after October
ment expenses.
individual, the identifying no. is his or her
13, 1987, on a line-of-credit mortgage you
social security number (SSN). Otherwise, it
3. You have no disallowed investment
had on that date are treated as a mortgage
is the employer identification number. You
interest expense from 1999.
taken out after October 13, 1987. If you
must also let the recipient know your SSN.
refinanced a mortgage you had on October
If you do not show the required information
13, 1987, treat the new mortgage as taken
Note. Alaska Permanent Fund dividends, in-
about the recipient or let the recipient know
out on or before October 13, 1987. But if
cluding those reported on Form 8814, are
your SSN, you may have to pay a $50 pen-
you refinanced for more than the balance of
not investment income.
alty.
the old mortgage, treat the excess as a mort-
If you and at least one other person (other
gage taken out after October 13, 1987.
For more details, see Pub. 550.
than your spouse if filing a joint return) were
See Pub. 936 to figure your deduction if
liable for and paid interest on the mortgage,
either 1 or 2 next applies. If you had more
and the other person received the Form
than one home at the same time, the dollar
1098, attach a statement to your return
amounts in 1 and 2 apply to the total mort-
showing the name and address of that
gages on both homes.
person. Next to line 11, enter "See attached."
1. You took out any mortgages after Oc-
tober 13, 1987, and used the proceeds for
purposes other than to buy, build, or im-
prove your home, and all of these mortgages
totaled over $100,000 at any time during
A-3

In figuring whether a gift is $250 or more,
Gifts to foreign organizations. But you
Gifts to Charity
do not combine separate donations. For ex-
may be able to deduct gifts to certain U.S.
ample, if you gave your church $25 each
organizations that transfer funds to foreign
You may deduct contributions or gifts you
week for a total of $1,300, treat each $25
charities and certain Canadian, Israeli, and
gave to organizations that are religious,
payment as a separate gift. If you made do-
Mexican charities. See Pub. 526 for details.
charitable, educational, scientific, or literary
nations through payroll deductions, treat
Gifts to organizations engaged in cer-
in purpose. You may also deduct what you
each deduction from each paycheck as a
tain political activities that are of direct fi-
gave to organizations that work to prevent
separate gift. See Pub. 526 if you made a
nancial interest to your trade or business.
cruelty to children or animals. Examples of
separate gift of $250 or more through pay-
See
Internal
Revenue
Code
section
these organizations are:
roll deduction.
170(f)(9).
Churches,
temples,
synagogues,
1. The amount of any money contributed
Gifts to groups whose purpose is to
mosques, Salvation Army, Red Cross,
and a description (but not value) of any
lobby for changes in the laws.
CARE, Goodwill Industries, United Way,
property donated.
Gifts to civic leagues, social and sports
Boy Scouts, Girl Scouts, Boys and Girls
2. Whether the organization did or did not
clubs, labor unions, and chambers of com-
Clubs of America, etc.
give you any goods or services in return for
merce.
Fraternal orders, if the gifts will be used your contribution. If you did receive any
Value of benefits received in connec-
for the purposes listed above.
goods or services, a description and estimate
tion with a contribution to a charitable or-

of the value must be included. If you re-
Veterans' and certain cultural groups.
ganization. See Pub. 526 for exceptions.
ceived only intangible religious benefits
Nonprofit schools, hospitals, and or- (such as admission to a religious ceremony),
ganizations whose purpose is to find a cure
the organization must state this, but it does
for, or help people who have, arthritis,
not have to describe or value the benefit.
Line 15
asthma, birth defects, cancer, cerebral palsy,
cystic fibrosis, diabetes, heart disease, he-
You must get the statement by
Gifts by Cash or Check
mophilia, mental illness or retardation, mul-
the date you file your return or
tiple
sclerosis,
muscular
dystrophy,
the due date (including exten-
Enter the total contributions you made in
tuberculosis, etc.
sions) for filing your return,
cash or by check (including out-of-pocket

whichever is earlier. Do not attach the state-
expenses).
Federal, state, and local governments if
ment to your return. Instead, keep it for your
the gifts are solely for public purposes.
records.
If you do not know whether you
Line 16
may deduct what you gave to an
Limit on the Amount You May Deduct.
organization, check with that or-
See Pub. 526 to figure the amount of your
Other Than by Cash or Check
ganization or with the IRS.
deduction if any of the following apply.
Enter your contributions of property. If you
Contributions You May Deduct
Your cash contributions or contribu- gave used items, such as clothing or furni-
tions of ordinary income property are more
ture, deduct their fair market value at the
Contributions may be in cash (keep canceled
than 30% of the amount on Form 1040,
time you gave them. Fair market value is
checks, receipts, or other reliable written re-
line 34.
what a willing buyer would pay a willing
cords showing the name of the organization
Your gifts of capital gain property are seller when neither has to buy or sell and
and the date and amount given), property,
more than 20% of the amount on Form 1040,
both are aware of the conditions of the sale.
or out-of-pocket expenses you paid to do
line 34.
volunteer work for the kinds of organiza-
If the amount of your deduction is more
tions described earlier. If you drove to and
You gave gifts of property that in- than $500, you must complete and attach
from the volunteer work, you may take 14
creased in value or gave gifts of the use of
Form 8283. For this purpose, the "amount
cents a mile or the actual cost of gas and
property.
of your deduction" means your deduction
oil. Add parking and tolls to the amount you
before applying any income limits that
You May Not Deduct as
claim under either method. But do not
could result in a carryover of contributions.
Contributions
deduct any amounts that were repaid to you.
If your total deduction is over $5,000, you
Travel expenses (including meals and may also have to get appraisals of the values
Gifts From Which You Benefit. If you
lodging) while away from home unless there
of the donated property. See Form 8283 and
made a gift and received a benefit in return,
was no significant element of personal
its instructions for details.
such as food, entertainment, or merchandise,
pleasure, recreation, or vacation in the
you may generally only deduct the amount
travel.
Recordkeeping. If you gave property, you
that is more than the value of the benefit.

should keep a receipt or written statement
Political contributions.
But this rule does not apply to certain mem-
from the organization you gave the property
Dues, fees, or bills paid to country
bership benefits provided in return for an
to, or a reliable written record, that shows
clubs, lodges, fraternal orders, or similar
annual payment of $75 or less. For details,
the organization's name and address, the
groups.
see Pub. 526.
date and location of the gift, and a descrip-
Cost of raffle, bingo, or lottery tickets. tion of the property. For each gift of prop-
Example. You paid $70 to a charitable
erty, you should also keep reliable written
organization to attend a fund-raising dinner
Cost of tuition.
records that include:
and the value of the dinner was $40. You
Value of your time or services.
may deduct only $30.

How you figured the property's value
Value of blood given to a blood bank.
at the time you gave it. If the value was
The transfer of a future interest in tan-
Gifts of $250 or More. You may deduct a
determined by an appraisal, keep a signed
gible personal property (generally, until the
gift of $250 or more only if you have a
copy of the appraisal.
entire interest has been transferred).
statement from the charitable organization
(Continued on page A-5)
showing the information in 1 and 2 on this
Gifts to individuals and groups that are
page.
run for personal profit.
A-4

The cost or other basis of the property
Examples of other expenses to include on
if you must reduce it by any ordinary income
Job Expenses
line 20 are:
or capital gain that would have resulted if
Safety equipment, small tools, and sup-
the property had been sold at its fair market
and Most Other
plies you needed for your job.
value.
Uniforms required by your employer,
How you figured your deduction if you Miscellaneous
and which you may not usually wear away
chose to reduce your deduction for gifts of
Deductions
from work.
capital gain property.
Protective clothing required in your
Any conditions attached to the gift.
Pub. 529 discusses the types of expenses
work, such as hard hats, safety shoes, and
that may and may not be deducted.
glasses.
Note. If your total deduction for gifts of
Examples of expenses you may not
Physical examinations your employer
property is over $500, you gave less than
deduct are:
said you must have.
your entire interest in the property, or you
Political contributions.
made a "qualified conservation contribu-
Dues to professional organizations and
tion," your records should contain additional
Personal legal expenses.
chambers of commerce.
information. See Pub. 526 for details.
Lost or misplaced cash or property.
Subscriptions to professional journals.
Expenses for meals during regular or
Fees to employment agencies and other
extra work hours.
costs to look for a new job in your present
Line 17
The cost of entertaining friends.
occupation, even if you do not get a new
Commuting expenses. See Pub. 529 for job.
Carryover From Prior Year
the definition of commuting.
Certain business use of part of your
Enter any carryover of contributions that
Travel expenses for employment away home. For details, including limits that
you could not deduct in an earlier year be-
from home if that period of employment
apply, use TeleTax topic 509 (see page 11
cause they exceeded your adjusted gross
exceeds 1 year. See Pub. 529 for an excep-
of the Form 1040 instructions) or see Pub.
income limit. See Pub. 526 for details.
tion for certain Federal employees.
587.
Travel as a form of education.
Certain educational expenses. For de-

tails, use TeleTax topic 513 (see page 11 of
Expenses of attending a seminar, con-
the Form 1040 instructions) or see Pub. 508.
Casualty and Theft
vention, or similar meeting unless it is re-
lated to your employment.
You may be able to take a credit
Losses

for your educational expenses in-
Club dues. See Pub. 529 for exceptions.
stead
of
a
deduction.
See
Expenses of adopting a child. But you
Form 8863 for details.
may be able to take a credit for your ex-
Line 19
penses. See Form 8839 for details.
Fines and penalties.
Complete and attach Form 4684 to figure
Line 21
the amount of your loss to enter on line 19.
Expenses of producing tax-exempt
income.
You may be able to deduct part or all of
Tax Preparation Fees
each loss caused by theft, vandalism, fire,
Enter the fees you paid for preparation of
storm, or similar causes, and car, boat, and
your tax return, including fees paid for filing
other accidents. You may also be able to
Line 20
your return electronically.
deduct money you had in a financial insti-
tution but lost because of the insolvency or
Unreimbursed Employee Expenses
bankruptcy of the institution.
Enter the total job expenses you paid for
Line 22
You may deduct nonbusiness casualty or
which you were not reimbursed. (Amounts
theft losses only to the extent that--
your employer included in box 1 of your
Other Expenses
1. The amount of each separate casualty
W-2 form are not considered reimburse-
Enter the total amount you paid to produce
or theft loss is more than $100 and
ments.) But you must fill in and attach
or collect taxable income and manage or
2. The total amount of all losses during
Form 2106 if:
protect property held for earning income.
the year is more than 10% of the amount on
1. You claim any travel, transportation,
But do not include any personal expenses.
Form 1040, line 34.
meal, or entertainment expenses for your job
List the type and amount of each expense
Special rules apply if you had both gains
or
on the dotted lines next to line 22. If you
and losses from nonbusiness casualties or
2. Your employer paid you for any of your
need more space, attach a statement showing
thefts. See Form 4684 for details.
job expenses reportable on line 20.
the type and amount of each expense. Enter
Use line 22 of Schedule A to deduct the
one total on line 22.
costs of proving that you had a property loss.
If you used your own vehicle and
Examples of expenses to include on
Examples of these costs are appraisal fees
item 2 does not apply, you may
line 22 are:
and photographs used to establish the
be able to file Form 2106-EZ
Certain legal and accounting fees.
amount of your loss.
instead.
Clerical help and office rent.
For information on Federal disaster area
If you do not have to file Form 2106 or
Custodial (for example, trust account)
losses, see Pub. 547.
2106-EZ, list the type and amount of each
fees.
expense on the dotted lines next to line 20.
Your share of the investment expenses
If you need more space, attach a statement
of a regulated investment company.
showing the type and amount of each ex-
pense. Enter one total on line 20.
(Continued on page A-6)
A-5

Certain losses on nonfederally insured
Gambling losses, but only to the extent
deposits in an insolvent or bankrupt finan-
of
gambling
winnings
reported
on
Total Itemized
cial institution. For details, including limits
Form 1040, line 21.
that apply, see Pub. 529.
Casualty and theft losses from income- Deductions
Casualty and theft losses from property producing property from Form 4684,
used in performing services as an employee
lines 32 and 38b, or Form 4797, line 18b(1).
from Form 4684, lines 32 and 38b, or
Federal estate tax on income in respect Line 28
Form 4797, line 18b(1).
of a decedent.
Deduction for repayment of amounts
Amortizable bond premium on bonds Use the worksheet below to figure the
under a claim of right if $3,000 or less.
acquired before October 23, 1986.
amount to enter on line 28 if the amount on

Form 1040, line 34, is over $128,950 if
Deduction for repayment of amounts
single, married filing jointly, head of house-
under a claim of right if over $3,000. See
hold, or qualifying widow(er); $64,475 if
Other Miscellaneous Pub. 525 for details.
married filing separately.
Certain unrecovered investment in a
Deductions
pension.
Impairment-related work expenses of a
disabled person.
Line 27
For more details, see Pub. 529.
Only the expenses listed next can be deduct-
ed on this line. List the type and amount of
each expense on the dotted lines next to line
27. If you need more space, attach a state-
ment showing the type and amount of each
expense. Enter one total on line 27.
Itemized Deductions Worksheet--Line 28
Keep for Your Records
1. Add the amounts on Schedule A, lines 4, 9, 14, 18, 19, 26, and 27
1.
2. Add the amounts on Schedule A, lines 4, 13, and 19, plus any gambling and casualty or theft losses
included on line 27
2.
Be sure your total gambling and casualty or theft losses are clearly identified on the dotted
lines next to line 27.
3. Is the amount on line 2 less than the amount on line 1?
STOP
No.
Your deduction is not limited. Enter the amount from line 1 above on Schedule A,
line 28.
Yes. Subtract line 2 from line 1
3.
4. Multiply line 3 above by 80% (.80)
4.
5. Enter the amount from Form 1040, line 34
5.
6. Enter: $128,950 if single, married filing jointly, head of household, or
qualifying widow(er); $64,475 if married filing separately
6.
7. Is the amount on line 6 less than the amount on line 5?
STOP
No.
Your deduction is not limited. Enter the amount from line 1
above on Schedule A, line 28.
Yes. Subtract line 6 from line 5
7.
8. Multiply line 7 above by 3% (.03)
8.
9. Enter the smaller of line 4 or line 8
9.
10.
Total itemized deductions. Subtract line 9 from line 1. Enter the result here and on Schedule A,
line 28
10.
A-6

2000
Use Schedule B (Form 1040) if any of the following apply.
You had over $400 of taxable interest.
Instructions for
Any of the Special Rules listed in the instructions for line 1 below apply to you.
You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued
Schedule B,
after 1989.
You had over $400 of ordinary dividends.
Interest and
You received ordinary dividends as a nominee.
Ordinary
You (1) had a foreign account or (2) received a distribution from, or were a grantor of,
or transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts
and trusts.
Dividends
You may list more than one
a subtotal of all interest listed on line 1.
on Schedule B. But identify the amount to
payer on each entry space for
Below this subtotal, enter "Nominee Distri-
be subtracted as "ABP Adjustment."
lines 1 and 5, but be sure to clear-
bution" and show the total interest you re-
ly show the amount paid next to
ceived as a nominee. Subtract this amount
the payer's name. Add the separate amounts
from the subtotal and enter the result on
Line 3
paid by the payers listed on an entry space
line 2.
and enter the total in the "Amount" column.
If you received interest as a nom-
Excludable Interest on
If you still need more space, attach separate
inee, you must give the actual
statements that are the same size as the print-
Series EE and I U.S. Savings
owner a Form 1099-INT unless
ed schedule. Use the same format as lines 1
Bonds Issued After 1989
the owner is your spouse. You
and 5, but show your totals on Schedule B.
must also file a Form 1096 and a
If, during 2000, you cashed series EE or I
Be sure to put your name and social security
Form 1099-INT with the IRS. For more de-
U.S. savings bonds issued after 1989 and
number (SSN) on the statements and attach
tails, see the General Instructions for
you paid qualified higher education ex-
them at the end of your return.
Forms 1099, 1098, 5498, and W-2G and
penses for yourself, your spouse, or your
Instructions for Forms 1099-INT and
dependents, you may be able to exclude part
1099-OID.
or all of the interest on those bonds. See
Part I. Interest
Form 8815 for details.
Accrued Interest
When you buy bonds between interest pay-
Line 1
ment dates and pay accrued interest to the
Part II. Ordinary
seller, this interest is taxable to the seller. If
you received a Form 1099 for interest as a
Interest
Dividends
purchaser of a bond with accrued interest,
Report on line 1 all of your taxable interest.
follow the rules earlier under Nominees to
Note. You may have to file Form 5471 if,
List each payer's name and show the
see how to report the accrued interest on
in 2000, you were an officer or director of
amount.
Schedule B. But identify the amount to be
a foreign corporation. You may also have to
subtracted as "Accrued Interest."
file Form 5471 if, in 2000, you owned 10%
Special Rules
or more of the total (1) value of a foreign
Tax-Exempt Interest
corporation's stock or (2) combined voting
Seller-Financed Mortgages
power of all classes of a foreign corpora-
If you received a Form 1099-INT for tax-
tion's stock with voting rights. For details,
If you sold your home or other property and
exempt interest, follow the rules earlier
see Form 5471 and its instructions.
the buyer used the property as a personal
under Nominees to see how to report the
residence, list first any interest the buyer
interest on Schedule B. But identify the
paid you on a mortgage or other form of
amount to be subtracted as "Tax-Exempt
Line 5
seller financing. Be sure to show the buyer's
Interest."
name, address, and SSN. You must also let
Original Issue Discount (OID)
the buyer know your SSN. If you do not
Ordinary Dividends
show the buyer's name, address, and SSN,
If you are reporting OID in an amount less
Report on line 5 all of your ordinary divi-
or let the buyer know your SSN, you may
than the amount shown on Form 1099-OID,
dends. List each payer's name and show the
have to pay a $50 penalty.
follow the rules earlier under Nominees to
amount.
see how to report the OID on Schedule B.
Nominees
Do not report capital gain distri-
But identify the amount to be subtracted as
butions on line 5. Instead, see the
If you received a Form 1099-INT that in-
"OID Adjustment."
instructions
for
Form
1040,
cludes interest you received as a nominee
line 13.
Amortizable Bond Premium
(that is, in your name, but the interest actu-
ally belongs to someone else), report the
(Continued on page B-2)
If you are reducing your interest income on
total on line 1. Do this even if you later
a bond by the amount of amortizable bond
distributed some or all of this income to
premium, follow the rules earlier under
others. Under your last entry on line 1, put
Nominees to see how to report the interest
B-1

Nominees
2. At any time during the year you had
See Form TD F 90-22.1 to find out if
an interest in or signature or other authority
you are considered to have an interest in or
If you received a Form 1099-DIV that in-
over a financial account in a foreign country
signature or other authority over a financial
cludes ordinary dividends you received as a
(such as a bank account, securities account,
account in a foreign country (such as a bank
nominee (that is, in your name, but the or-
or other financial account).
account, securities account, or other finan-
dinary dividends actually belong to someone
cial account).
else), report the total on line 5. Do this even
if you later distributed some or all of this
If you checked the "Yes" box on line 7a,
Note. Item 2 does not apply to foreign se-
income to others. Under your last entry on
file Form TD F 90-22.1 by June 30, 2001,
curities held in a U.S. securities account.
line 5, put a subtotal of all ordinary divi-
with the Department of the Treasury at
dends listed on line 5. Below this subtotal,
the address shown on that form. Do not
enter "Nominee Distribution" and show the
Exceptions. Check the "No" box if any of
attach it to Form 1040.
total ordinary dividends you received as a
the following applies to you.
Line 7b
nominee. Subtract this amount from the sub-
The combined value of the accounts
total and enter the result on line 6.
was $10,000 or less during the whole year.
If you checked the "Yes" box on line 7a,
If you received ordinary divi-
The accounts were with a U.S. military enter the name of the foreign country or
dends as a nominee, you must
banking facility operated by a U.S. financial
countries in the space provided on line 7b.
give
the
actual
owner
a
institution.
Attach a separate statement if you need more
Form
1099-DIV
unless
the
You were an officer or employee of a space.
owner is your spouse. You must also file a
commercial bank that is supervised by the
Form 1096 and a Form 1099-DIV with the
Comptroller of the Currency, the Board of
IRS. For more details, see the General In-
Governors of the Federal Reserve System,
Line 8
structions for Forms 1099, 1098, 5498,
or the Federal Deposit Insurance Corpora-
and W-2G and Instructions for Form
tion; the account was in your employer's
Foreign Trusts
1099-DIV.
name; and you did not have a personal fi-
nancial interest in the account.
If you received a distribution from a foreign

trust, you must provide additional informa-
You were an officer or employee of a
tion. For this purpose, a loan of cash or
Part III. Foreign
domestic corporation with securities listed
marketable securities generally is consid-
on national securities exchanges or with
Accounts and Trusts
ered to be a distribution. See Form 3520 for
assets of more than $1 million and 500 or
details.
more shareholders of record; the account
was in your employer's name; you did not
If you were the grantor of, or transferor
to, a foreign trust that existed during 2000,
Lines 7a and 7b
have a personal financial interest in the ac-
count; and the corporation's chief financial
you may have to file Form 3520.
officer has given you written notice that the
Foreign Accounts
corporation has filed a current report that
includes the account.
Line 7a
Check the "Yes" box on line 7a if either 1
or 2 below applies to you.
1. You own more than 50% of the stock
in any corporation that owns one or more
foreign bank accounts.
B-2

2000
Use Schedule C (Form 1040) to report income or loss from a business you operated or a
profession you practiced as a sole proprietor. Also, use Schedule C to report wages and
expenses you had as a statutory employee. An activity qualifies as a business if your
Instructions for
primary purpose for engaging in the activity is for income or profit and you are involved
in the activity with continuity and regularity. For example, a sporadic activity or a hobby
Schedule C,
does not qualify as a business. To report income from a nonbusiness activity, see the
instructions for Form 1040, line 21.
Profit or Loss
Small businesses and statutory employees with expenses of $2,500 or less may be able
to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ to find out if you qualify
to file it.
From Business
You may be subject to state and local taxes and other requirements such as business
licenses and fees. Check with your state and local governments for more information.
tractor-trailers, or buses in your trade or
business, you may have to pay a Federal
General Instructions
Line D
highway motor vehicle use tax. See Form
2290 to find out if you owe this tax.
You need an EIN only if you had a qualified
A Change To Note
retirement plan or were required to file an
Information Returns. You may have to file
Generally, if your average annual gross re-
employment, excise, estate, trust, or alcohol,
information returns for wages paid to em-
ceipts for the 3 prior tax years are $1 million
tobacco, and firearms tax return. If you need
ployees, certain payments of fees and other
or less, you may be eligible to adopt or
an EIN, file Form SS-4. If you do not have
nonemployee compensation, interest, rents,
change to the cash method of accounting. If
an EIN, leave line D blank. Do not enter
royalties, real estate transactions, annuities,
you make this change, you will not be re-
your SSN.
and pensions. You may also have to file an
quired to account for inventories. Instead,
information return if you sold $5,000 or
you may treat inventory in the same manner
more of consumer products to a person on
as costs of materials and supplies that are
a buy-sell, deposit-commission, or other
Line E
not incidental. For details, see Cost of
similar basis for resale. For details, see the
Goods Sold on page C-6.
2000 General Instructions for Forms
Enter your business address. Show a street
address instead of a box number. Include the
Other Schedules and Forms
1099, 1098, 5498, and W-2G.
suite or room number, if any. If you con-
You May Have To File
If you received cash of more than $10,000
ducted the business from your home located
in one or more related transactions in your
at the address shown on Form 1040, page
Schedule A to deduct interest, taxes, and
trade or business, you may have to file Form
1, you do not have to complete this line.
casualty losses not related to your business.
8300. For details, see Pub. 1544.
Schedule E to report rental real estate and
Additional Information
royalty income or (loss) that is not subject
Line F
to self-employment tax.
See Pub. 334 for more information for small
businesses.
Generally, you can use the cash method,
Schedule F to report profit or (loss) from
accrual method, or any other method per-
farming.
mitted by the Internal Revenue Code. In all
Schedule SE to pay self-employment tax on
Specific Instructions cases, the method used must clearly reflect
income from any trade or business.
income. If inventories are required, you
must use the accrual method for sales and
Form 4562 to claim depreciation on assets
purchases of inventory. See Cost of Goods
placed in service in 2000, to claim amorti-
Filers of Form 1041. Do not complete the
Sold on page C-6. Special rules apply to
zation that began in 2000, or to report in-
block labeled "Social security number." In-
long-term contracts. See Internal Revenue
formation on listed property.
stead, enter your employer identification
Code section 460 for details.
Form 4684 to report a casualty or theft gain
number (EIN) on line D.
If you use the cash method, show all
or loss involving property used in your trade
items of taxable income actually or con-
or business or income-producing property.
structively received during the year (in cash,
property, or services). Income is construc-
Form 4797 to report sales, exchanges, and
Line A
tively received when it is credited to your
involuntary conversions (not from a casualty
Describe the business or professional activ-
account or set aside for you to use. Also,
or theft) of trade or business property.
ity that provided your principal source of
show amounts actually paid during the year
for deductible expenses.
Form 8271 if you are claiming or reporting
income reported on line 1. If you owned
on Schedule C or C-EZ any income, deduc-
more than one business, you must complete
If you use the accrual method, report
tion, loss, credit, or other tax benefit from
a separate Schedule C for each business.
income when you earn it and deduct ex-
a tax shelter.
Give the general field or activity and the
penses when you incur them even if you do
type of product or service. If your general
not pay them during the tax year.
Form 8594 to report certain purchases or
field or activity is wholesale or retail trade,
Accrual-basis taxpayers are put on a cash
sales of groups of assets that constitute a
or services connected with production serv-
basis for deducting business expenses owed
trade or business.
ices (mining, construction, or manufactur-
to a related cash-basis taxpayer. Other rules
ing), also give the type of customer or client.
Form 8824 to report like-kind exchanges.
determine the timing of deductions based on
For example, "wholesale sale of hardware
economic performance. See Pub. 538.
Form 8829 to claim expenses for business
to retailers" or "appraisal of real estate for
use of your home.
lending institutions."
To change your accounting method (in-
cluding treatment of inventories), you must
Heavy Highway Vehicle Use Tax. If you
usually get permission from the IRS. In gen-
use certain highway trucks, truck-trailers,
eral, you must file Form 3115 during the
C-1
Cat. No. 24329W

tax year in which you want to make the
6. The activity is a personal service ac-
change.
tivity in which you materially participated
for any 3 prior tax years. A personal service
Part I. Income
activity is an activity that involves perform-
Line G
ing personal services in the fields of health,
law, engineering, architecture, accounting,
Line 1
Participation, for purposes of the following
actuarial science, performing arts, consult-
seven material participation tests, generally
ing, or any other trade or business in which
Enter gross receipts from your trade or busi-
includes any work you did in connection
capital is not a material income-producing
ness. Include amounts you received in your
with an activity if you owned an interest in
factor.
trade or business that were properly shown
the activity at the time you did the work.
7. Based on all the facts and circum-
on Forms 1099-MISC. If the total amounts
The capacity in which you did the work does
stances, you participated in the activity on
that were reported in box 7 of Forms
not matter. However, work is not treated as
a regular, continuous, and substantial basis
1099-MISC are more than the total you are
participation if it is work that an owner
during the tax year. But you do not meet
reporting on line 1, attach a statement ex-
would not customarily do in the same type
this test if you participated in the activity
plaining the difference.
of activity and one of your main reasons for
for 100 hours or less during the tax year.
doing the work was to avoid the disallow-
Statutory Employees. If you received a
Your participation in managing the activity
ance of losses or credits from the activity
Form W-2 and the "Statutory employee"
does not count in determining if you meet
under the passive activity rules.
box in box 15 of that form was checked,
this test if any person (except you) (a) re-
report your income and expenses related to
Work you did as an investor in an activity
ceived compensation for performing man-
that income on Schedule C or C-EZ. Enter
is not treated as participation unless you
agement services in connection with the
your statutory employee income from box
were directly involved in the day-to-day
activity or (b) spent more hours during the
1 of Form W-2 on line 1 of Schedule C or
management or operations of the activity.
tax year than you spent performing manage-
C-EZ, and check the box on that line. Social
Work done as an investor includes:
ment services in connection with the activity
security and Medicare tax should have been
(regardless of whether the person was com-
1. Studying and reviewing financial state-
withheld from your earnings; therefore, you
pensated for the services).
ments or reports on the activity,
do not owe self-employment tax on these
If you meet any of the above tests, check
2. Preparing or compiling summaries or
earnings. Statutory employees include full-
the "Yes" box.
analyses of the finances or operations of the
time life insurance agents, certain agent or
activity for your own use, and
If you do not meet any of the above tests,
commission drivers and traveling salesper-
check the "No" box. This business is a pas-
sons, and certain homeworkers.
3. Monitoring the finances or operations
sive activity. If you have a loss from this
of the activity in a nonmanagerial capacity.
If you had both self-employment income
business, see Limit on Losses below. If you
and statutory employee income, you must
Participation by your spouse during the
have a profit from this business activity but
file two Schedules C. You cannot use
tax year in an activity you own can be count-
have current year losses from other passive
Schedule C-EZ or combine these amounts
ed as your participation in the activity. This
activities or you have prior year unallowed
on a single Schedule C.
applies even if your spouse did not own an
passive activity losses, see the Instructions
interest in the activity and whether or not
for Form 8582.
Installment Sales. Generally, the install-
you and your spouse file a joint return.
ment method may not be used to report
Exception for Oil and Gas. If you are filing
income from the sale of (a) personal prop-
Material Participation. For purposes of the
Schedule C to report income and deductions
erty regularly sold under the installment
passive activity rules, you materially partic-
from an oil or gas well in which you own
method or (b) real property held for resale
ipated in the operation of this trade or busi-
a working interest directly or through an
to customers. But the installment method
ness activity during 2000 if you meet any
entity that does not limit your liability,
may be used to report income from sales of
of the following seven tests.
check the "Yes" box. The activity of owning
certain residential lots and timeshares if you
1. You participated in the activity for
the working interest is not a passive activity
elect to pay interest on the tax due on that
more than 500 hours during the tax year.
regardless of your participation.
income after the year of sale. See Internal
2. Your participation in the activity for
Revenue Code section 453(l)(2)(B) for de-
Limit on Losses. If you checked the "No"
the tax year was substantially all of the par-
tails. If you make this election, include the
box and you have a loss from this business,
ticipation in the activity of all individuals
interest on Form 1040, line 57. Also, enter
you may have to use Form 8582 to figure
(including individuals who did not own any
"453(l)(3)" and the amount of the interest
your allowable loss, if any, to enter on
interest in the activity) for the tax year.
on the dotted line to the left of line 57.
Schedule C, line 31. Generally, you can
3. You participated in the activity for
deduct losses from passive activities only to
If you use the installment method, attach
more than 100 hours during the tax year,
the extent of income from passive activities.
a schedule to your return. Show separately
and you participated at least as much as any
for 2000 and the 3 preceding years: gross
For details, see Pub. 925.
other person for the tax year. This includes
sales, cost of goods sold, gross profit, per-
individuals who did not own any interest in
centage of gross profit to gross sales,
the activity.
amounts collected, and gross profit on
Line H
amounts collected.
4. The activity is a significant participa-
tion activity for the tax year, and you par-
If you started or acquired this business in
ticipated in all significant participation
2000, check the box on line H. Also, check
activities for more than 500 hours during the
the box if you are reopening or restarting
Line 6
year. An activity is a "significant participa-
this business after temporarily closing it, and
Report on line 6 amounts from finance re-
tion activity" if it involves the conduct of a
you did not file a 1999 Schedule C or C-EZ
serve income, scrap sales, bad debts you
trade or business, you participated in the
for this business.
recovered, interest (such as on notes and
activity for more than 100 hours during the
accounts receivable), state gasoline or fuel
tax year, and you did not materially partic-
tax refunds you got in 2000, credit for Fed-
ipate under any of the material participation
eral tax paid on gasoline or other fuels
tests (other than this test 4).
claimed on your 1999 Form 1040, prizes and
5. You materially participated in the ac-
awards related to your trade or business, and
tivity for any 5 of the prior 10 tax years.
other kinds of miscellaneous business
income. Include amounts you received in
C-2

your trade or business as shown on Form
having a useful life substantially beyond the
1099-PATR. Also, include any recapture of
Line 10
tax year. You can also depreciate improve-
the deduction for clean-fuel vehicles used in
ments made to leased business property.
your business and clean-fuel vehicle refuel-
You can deduct the actual expenses of run-
However, stock in trade, inventories, and
ing property. For details, see Pub. 535.
ning your car or truck, or take the standard
land are not depreciable. Depreciation starts
If the business use percentage of any
mileage rate. You must use actual expenses
when you first use the property in your busi-
listed property (defined in the instructions
if you used your vehicle for hire (such as a
ness or for the production of income. It ends
for line 13 on this page) decreased to 50%
taxicab), or you used more than one vehicle
when you take the property out of service,
or less in 2000, report on this line any re-
simultaneously in your business (such as in
deduct all your depreciable cost or other
capture of excess depreciation, including
fleet operations). You cannot use actual ex-
basis, or no longer use the property in your
any section 179 expense deduction. Use
penses for a leased vehicle if you previously
business or for the production of income.
Form 4797 to figure the recapture. Also, if
used the standard mileage rate for that ve-
You may also choose under Internal Reve-
the business use percentage drops to 50% or
hicle.
nue Code section 179 to expense part of the
less on leased listed property (other than a
You can take the standard mileage rate
cost of certain property you bought in 2000
vehicle), include on this line any inclusion
for 2000 only if:
for use in your business. See the Instructions
amount. See Pub. 946 to figure the amount.
for Form 4562 to figure the amount to enter
You owned the vehicle and use the on line 13.
standard mileage rate for the first year you
placed the vehicle in service or
When To Attach Form 4562. You must
Part II. Expenses
You leased the vehicle and are using complete and attach Form 4562 only if:
the standard mileage rate for the entire lease
You are claiming depreciation on prop-
Capitalizing Costs of Property. If you pro-
period (except the period, if any, before
erty placed in service during 2000,
duced real or tangible personal property or
1998).
You are claiming depreciation on listed
acquired property for resale, certain ex-
If you deduct actual expenses:
property (defined below), regardless of the
penses attributable to the property generally
date it was placed in service, or
must be included in inventory costs or cap-
Include on line 10 the business portion
italized. In addition to direct costs, produc-
of expenses for gasoline, oil, repairs, insur-
You are claiming a section 179 expense
ers of inventory property generally must also
ance, tires, license plates, etc., and
deduction.
include part of certain indirect costs in their
Show depreciation on line 13 and rent
If you acquired depreciable property for
inventory. Purchasers of personal property
or lease payments on line 20a.
the first time in 2000, see Pub. 946.
acquired for resale must include part of cer-
If you take the standard mileage rate, mul-
Listed property generally includes, but
tain indirect costs in inventory only if the
tiply the number of business miles by 32.5
is not limited to:
average annual gross receipts for the 3 prior
cents. Add to this amount your parking fees
tax years exceed $10 million. Also, you
Passenger automobiles weighing 6,000
and tolls, and enter the total on line 12. Do
must capitalize part of the indirect costs that
pounds or less,
not deduct depreciation, rent or lease pay-
benefit real or tangible personal property

ments, or your actual operating expenses.
Any other property used for transpor-
constructed for use in a trade or business,
tation if the nature of the property lends
or noninventory property produced for sale
For details, see Pub. 463.
itself to personal use, such as motorcycles,
to customers. Reduce the amounts on lines
Information on Your Vehicle. If you claim
pickup trucks, etc.,
826 and Part V by amounts capitalized. For
any car and truck expenses, you must pro-
Any property used for entertainment or
details, see Pub. 538.
vide certain information on the use of your
recreational purposes (such as photographic,
Exception for Cash Method Producers
vehicle by completing one of the following.
phonographic, communication, and video
Who Do Not Account for Inventories. Pro-
Part IV of Schedule C or Part III of recording equipment),
ducers whose average annual gross receipts
Schedule C-EZ if: (a) you are claiming the
Cellular telephones or other similar tel-
are $1 million or less that use the cash
standard mileage rate, you lease your vehi-
ecommunications equipment, and
method of accounting and choose not to ac-
cle, or your vehicle is fully depreciated and
Computers or peripheral equipment.
count for inventories may currently deduct
(b) you are not required to file Form 4562
expenditures for direct labor and all indirect
for any other reason. If you used more than
Exceptions. Listed property does not in-
costs that would otherwise be included in
one vehicle during the year, attach your own
clude photographic, phonographic, commu-
inventory costs. See Cost of Goods Sold on
schedule with the information requested in
nication,
or
video
equipment
used
page C-6 for more details.
Part IV of Schedule C, or Part III of Sched-
exclusively in your trade or business or at
your regular business establishment. It also
Exception for Creative Property. If you
ule C-EZ, for each additional vehicle.
does not include any computer or peripheral
are an artist, author, or photographer, you
Part V of Form 4562 if you are claim- equipment used exclusively at a regular
may be exempt from the capitalization rules.
ing depreciation on your vehicle or you are
business establishment and owned or leased
However, your personal efforts must have
required to file Form 4562 for any other
by the person operating the establishment.
created (or reasonably be expected to create)
reason (see the instructions for line 13
For purposes of these exceptions, a portion
the property. This exception does not apply
below).
of your home is treated as a regular business
to any expense related to printing, photo-
establishment only if that portion meets the
graphic plates, motion picture films, video
requirements under Internal Revenue Code
tapes, or similar items. These expenses are
Line 12
section 280A(c)(1) for deducting expenses
subject to the capitalization rules. For de-
for the business use of your home.
tails, see Pub. 538.
Enter your deduction for depletion on this
line. If you have timber depletion, attach
See the instructions for line 6 on page C-2
Form T. See Pub. 535 for details.
if the business use percentage of any listed
property decreased to 50% or less in 2000.
Line 9
Include debts and partial debts from sales or
Line 13
services that were included in income and
Line 14
are definitely known to be worthless. If you
Depreciation and Section 179 Expense
later collect a debt that you deducted as a
Deduction. Depreciation is the annual de-
Deduct contributions to employee benefit
bad debt, include it as income in the year
duction allowed to recover the cost or other
programs that are not an incidental part of
collected. For details, see Pub. 535.
basis of business or investment property
a pension or profit-sharing plan included on
C-3

line 19. Examples are accident and health
line 16b. Attach a statement to your return
Enter on line 20b amounts paid to rent or
plans, group-term life insurance, and depen-
showing the name and address of the person
lease other property, such as office space in
dent care assistance programs.
who received the Form 1098. In the margin
a building.
Do not include on line 14 any contribu-
next to line 16b, enter "See attached."
tions you made on your behalf as a self-
Do not deduct interest you paid or accrued
employed person to an accident and health
on debts allocable to investment property.
Line 21
plan or for group-term life insurance. You
This interest is generally deducted on
may be able to deduct on Form 1040, line
Schedule A. For details, see Pub. 550.
Deduct the cost of repairs and maintenance.
28, part of the amount you paid for health
Include labor, supplies, and other items that
insurance on behalf of yourself, your spouse,
do not add to the value or increase the life
and dependents, even if you do not itemize
of the property. Do not deduct the value of
Line 17
your deductions. See the instructions for
your own labor. Do not deduct amounts
Form 1040, line 28, for details.
Include on this line fees for tax advice re-
spent to restore or replace property; they
lated to your business and for preparation of
must be capitalized.
the tax forms related to your business.
Line 15
Line 22
Deduct premiums paid for business insur-
Line 19
ance on line 15. Deduct on line 14 amounts
Generally, you can deduct the cost of sup-
paid for employee accident and health in-
Enter your deduction for contributions to a
plies only to the extent you actually con-
surance. Do not deduct amounts credited to
pension, profit-sharing, or annuity plan, or
sumed and used them in your business
a reserve for self-insurance or premiums
plans for the benefit of your employees. If
during the tax year (unless you deducted
paid for a policy that pays for your lost
the plan includes you as a self-employed
them in a prior tax year). However, if you
earnings due to sickness or disability. For
person, enter contributions made as an em-
had incidental supplies on hand for which
details, see Pub. 535.
ployer on your behalf on Form 1040, line
you kept no inventories or records of use,
29, not on Schedule C.
you may deduct the cost of supplies you
actually purchased during the tax year, pro-
Generally, you must file the applicable
vided that method clearly reflects income.
Lines 16a and 16b
form listed below if you maintain a pension,
profit-sharing, or other funded-deferred
Interest Allocation Rules. The tax treat-
compensation plan. The filing requirement
ment of interest expense differs depending
is not affected by whether or not the plan
Line 23
on its type. For example, home mortgage
qualified under the Internal Revenue Code,
interest and investment interest are treated
You can deduct the following taxes and li-
or whether or not you claim a deduction for
differently. "Interest allocation" rules re-
censes on this line.
the current tax year. There is a penalty for
quire you to allocate (classify) your interest
failure to timely file these forms.
State and local sales taxes imposed on
expense so it is deducted (or capitalized) on
you as the seller of goods or services. If you
the correct line of your return and gets the
Form 5500. File this form for a plan that
collected this tax from the buyer, you must
right tax treatment. These rules could affect
is not a one-participant plan (see below).
also include the amount collected in gross
how much interest you are allowed to deduct
Form 5500-EZ. File this form for a one-
receipts or sales on line 1.
on Schedule C or C-EZ.
participant plan. A one-participant plan is
Real estate and personal property taxes
Generally, you allocate interest expense
a plan that only covers you (or you and your
on business assets.
by tracing how the proceeds of the loan were
spouse).
Licenses and regulatory fees for your
used. See Pub. 535 for details.
For details, see Pub. 560.
trade or business paid each year to state or
If you paid interest in 2000 that applies
local governments. But some licenses, such
to future years, deduct only the part that
as liquor licenses, may have to be amortized.
applies to 2000. If you paid interest on a
Lines 20a and 20b
See Pub. 535 for details.
debt secured by your main home and any of
Social security and Medicare taxes paid
the proceeds from that debt were used in
If you rented or leased vehicles, machinery,
to match required withholding from your
connection with your trade or business, see
or equipment, enter on line 20a the business
employees' wages. Also, Federal unemploy-
Pub. 535 to figure the amount that is de-
portion of your rental cost. But if you leased
ment tax paid. Reduce your deduction by
ductible on Schedule C or C-EZ.
a vehicle for a term of 30 days or more, you
may have to reduce your deduction by an
the amount of the current year credit shown
If you have a mortgage on real property
amount called the inclusion amount.
on line 4 of Form 8846.
used in your business (other than your main
Federal highway use tax.
home), enter on line 16a the interest you
paid for 2000 to banks or other financial
You may have to do this if--
Do not deduct on this line:
institutions for which you received a Form
And the vehicle's
Federal income taxes, including your
1098. If you did not receive a Form 1098,
The lease
fair market value on
self-employment tax. However, you may
enter the interest on line 16b.
deduct one-half of your self-employment tax
term began
the first day of the
If you paid more mortgage interest than
on Form 1040, line 27.
during . . .
lease exceeded . . .
is shown on Form 1098 or similar statement,
Estate and gift taxes.
see Pub. 535 to find out if you can deduct
1999 or 2000
$15,500
Taxes assessed to pay for improve-
the additional interest. If you can, include
1997 or 1998
15,800
ments, such as paving and sewers.
the amount on line 16a. Attach a statement
to your return explaining the difference.
1995 or 1996
15,500
Taxes on your home or personal use
Enter "See attached" in the margin next to
property.
If the lease term began before 1995, see Pub.
line 16a.
463 to find out if you have an inclusion
State and local sales taxes on property
If you and at least one other person (other
amount.
purchased for use in your business. Instead,
than your spouse if you file a joint return)
treat these taxes as part of the cost of the
were liable for and paid interest on the mort-
See Pub. 463 to figure your inclusion
property.
gage and the other person received the Form
amount.
State and local sales taxes imposed on
1098, report your share of the interest on
the buyer that you were required to collect
C-4

and pay over to state or local governments.
bar and medical associations), business
Form 5884, Work Opportunity Credit,
These taxes are not included in gross re-
leagues, trade associations, chambers of
Form 8844, Empowerment Zone Em-
ceipts or sales nor are they a deductible ex-
commerce, boards of trade, and real estate
ployment Credit,
pense. However, if the state or local
boards, unless a principal purpose of the
government allowed you to retain any part
organization is to entertain, or provide en-
Form 8845, Indian Employment
of the sales tax you collected, you must
tertainment facilities for, members or their
Credit, and
include that amount as income on line 6.
guests.
Form 8861, Welfare-to-Work Credit.
Other taxes and license fees not related
There are exceptions to these rules as well
to your business.
as other rules that apply to sky-box rentals
If you provided taxable fringe
and tickets to entertainment events. See Pub.
benefits to your employees, such
463.
as personal use of a car, do not
Line 24a
Generally, you may deduct only 50% of
deduct as wages the amount ap-
your business meal and entertainment ex-
plicable to depreciation and other expenses
Enter your expenses for lodging and trans-
penses, including meals incurred while away
claimed elsewhere.
portation connected with overnight travel
from home on business. For individuals sub-
for business while away from your tax
ject to the Department of Transportation
home. Generally, your tax home is your
(DOT) hours of service limits, that percent-
Line 30
main place of business regardless of where
age is increased to 60% for business meals
you maintain your family home. You cannot
consumed during, or incident to, any period
Business Use of Your Home. You may be
deduct expenses paid or incurred in connec-
of duty for which those limits are in effect.
able to deduct certain expenses for business
tion with employment away from home if
Individuals subject to the DOT hours of ser-
use of your home, subject to limitations.
that period of employment exceeds 1 year.
vice limits include the following persons:
You must attach Form 8829 if you claim
Also, you cannot deduct travel expenses for

this deduction. For details, see the Instruc-
Certain
air
transportation
workers
your spouse, your dependent, or any other
tions for Form 8829 and Pub. 587.
(such as pilots, crew, dispatchers, mechan-
individual unless that person is your em-
ics, and control tower operators) who are
ployee, the travel is for a bona fide business
under Federal Aviation Administration reg-
purpose, and the expenses would otherwise
ulations.
be deductible by that person.
Line 31
Interstate truck operators who are under
Do not include expenses for meals and
If you have a loss, the amount of loss you
DOT regulations.
entertainment on this line. Instead, see the
can deduct this year may be limited. Go to
instructions for lines 24b and 24c below.
Certain merchant mariners who are line 32 before entering your loss on line 31.
under Coast Guard regulations.
If you answered "No" to Question G on
You cannot deduct expenses for attending
Schedule C, also see the Instructions for
a foreign convention unless it is directly
However, you may fully deduct meals and
Form 8582. Enter the net profit or deduct-
related to your trade or business and it is as
entertainment furnished or reimbursed to an
ible loss here. Combine this amount with
reasonable for the meeting to be held outside
employee if you properly treat the expense
any profit or loss from other businesses, and
the North American area as within it. These
as wages subject to withholding. You may
enter the total on Form 1040, line 12, and
rules apply to both employers and employ-
also fully deduct meals and entertainment
Schedule SE, line 2. Estates and trusts
ees. Other rules apply to luxury water travel.
provided to a nonemployee to the extent the
expenses are includible in the gross income
should enter the total on Form 1041, line 3.
For details, see Pub. 463.
of that person and reported on Form
If you have a net profit on line 31, this
1099-MISC. See Pub. 463 for details and
amount is earned income and may qualify
other exceptions.
you for the earned income credit. See the
Lines 24b and 24c
Figure how much of the amount on line
instructions for Form 1040, lines 60a and
60b, for details.
On line 24b, enter your total business meal
24b is not deductible and enter that amount
and entertainment expenses. Include meals
on line 24c.
Statutory Employees. Include your net
while traveling away from home for busi-
profit or deductible loss from line 31 with
ness. Instead of the actual cost of your meals
other Schedule C amounts on Form 1040,
while traveling away from home, you may
Line 25
line 12. However, do not report this amount
use the standard meal allowance. For more
on Schedule SE, line 2. If you are required
details, see Pub. 463.
Deduct only utility expenses for your trade
to file Schedule SE because of other self-
or business.
Business meal expenses are deductible
employment income, see the Instructions for
only if they are (a) directly related to or
Schedule SE.
Local Telephone Service. If you used your
associated with the active conduct of your
home phone for business, do not deduct the
trade or business, (b) not lavish or extrava-
base rate (including taxes) of the first phone
gant, and (c) incurred while you or your
line into your residence. But you can deduct
Line 32
employee is present at the meal.
expenses for any additional costs you in-
At-Risk Rules. Generally, if you have (a)
You cannot deduct any expense paid or
curred for business that are more than the
a business loss and (b) amounts in the busi-
incurred for a facility (such as a yacht or
cost of the base rate for the first phone line.
ness for which you are not at risk, you will
hunting lodge) used for any activity usually
For example, if you had a second line, you
have to complete Form 6198 to figure your
considered entertainment, amusement, or
can deduct the business percentage of the
allowable loss. The at-risk rules generally
recreation.
charges for that line, including the base rate
charges.
limit the amount of loss (including loss on
Also, you cannot deduct membership
the disposition of assets) you can claim to
dues for any club organized for business,
the amount you could actually lose in the
pleasure, recreation, or other social purpose.
business.
This includes country clubs, golf and athlet-
Line 26
Check box 32b if you have amounts for
ic clubs, airline and hotel clubs, and clubs
which you are not at risk in this business,
operated to provide meals under conditions
Enter the total salaries and wages for the tax
such as the following.
favorable to business discussion. But it does
year. Do not include salaries and wages de-
not include civic or public service organi-
ducted elsewhere on your return or amounts
Nonrecourse loans used to finance the
zations, professional organizations (such as
paid to yourself. Reduce your deduction by
business, to acquire property used in the
the current year credits claimed on:
business, or to acquire the business that are
C-5

not secured by your own property (other
If you want to change to the cash method
include the cost of business equipment or
than property used in the business). How-
of accounting, you must file Form 3115.
furniture, replacements or permanent im-
ever, there is an exception for certain non-
You may also have to make an adjustment
provements to property, or personal, living,
recourse financing borrowed by you in
to prevent amounts of income or expense
and family expenses. Do not include chari-
connection with holding real property.
from being duplicated or omitted. This is
table contributions. Also, you may not
Cash, property, or borrowed amounts called a section 481(a) adjustment, which is deduct fines or penalties paid to a govern-
used in the business (or contributed to the
taken into account over a period not to
ment for violating any law. For details on
business, or used to acquire the business)
exceed 4 years. For example, if you accrued
business expenses, see Pub. 535.
that are protected against loss by a guaran-
sales in 1999 for which you received pay-
Amortization. Include amortization in this
tee, stop-loss agreement, or other similar ar-
ment in 2000, you must report those sales
part. For amortization that begins in 2000,
rangement (excluding casualty insurance
in both years as a result of changing your
you must complete and attach Form 4562.
and insurance against tort liability).
accounting method and will make a section

481(a) adjustment to prevent duplication of
You may amortize:
Amounts borrowed for use in the busi-
income. See Rev. Proc. 99-49, 1999-52
ness from a person who has an interest in
The cost of pollution-control facilities.
I.R.B. 725, to figure the amount of this ad-
the business, other than as a creditor, or who
justment for 2000. Include any positive sec-
Amounts paid for research and experi-
is related under Internal Revenue Code sec-
tion 481(a) adjustment on line 6. If the
mentation.
tion 465(b)(3) to a person (other than you)
section 481(a) adjustment is negative, report
Certain business startup costs.
having such an interest.
it in Part V.
Qualified forestation and reforestation
If all amounts are at risk in this business,
For eligibility requirements and further
costs. See Pub. 535 for limitations.
check box 32a and enter your loss on line
details on changing to the cash method of
31. But if you answered "No" to Question
Amounts paid to acquire, protect,
accounting, see Pub. 553.
G, you may need to complete Form 8582
expand, register, or defend trademarks or
to figure your deductible loss. See the In-
trade names.
structions for Form 8582 for details.
Note. Certain direct and indirect expenses
Goodwill and certain other intangibles.
may have to be capitalized or included in
If you checked box 32b, see Form 6198
In general, you may not amortize real
inventory. See the instructions for Part II
to determine the amount of your deductible
property construction period interest and
beginning on page C-3.
loss. But if you answered "No" to Question
taxes. Special rules apply for allocating in-
G, your loss may be further limited. See the
terest to real or personal property produced
Instructions for Form 8582. If your at-risk
in your trade or business.
amount is zero or less, enter zero on line 31.
Line 33
Be sure to attach Form 6198 to your return.
At-Risk Loss Deduction. Any loss from
If you checked box 32b and you do not
Your inventories can be valued at cost; cost
this activity that was not allowed as a de-
attach Form 6198, the processing of your
or market value, whichever is lower; or any
duction last year because of the at-risk rules
tax return may be delayed.
other method approved by the IRS. Howev-
is treated as a deduction allocable to this
er, you are required to use cost if you are
activity in 2000.
Any loss from this business not allowed
using the cash method of accounting.
for 2000 because of the at-risk rules is treat-
Capital Construction Fund. Do not claim
ed as a deduction allocable to the business
on Schedule C or C-EZ the deduction for
in 2001. For details, see the Instructions for
amounts contributed to a capital construc-
Form 6198 and Pub. 925.
Line 35
tion fund set up under the Merchant Marine
Act of 1936. Instead, reduce the amount you
If you are changing your method of account-
would otherwise enter on Form 1040, line
ing from accrual to cash beginning with
39, by the amount of the deduction. Next to
Part III. Cost of
2000 and you do not want to account for
line 39, enter "CCF" and the amount of the
inventories, refigure last year's closing in-
Goods Sold
deduction. For details, see Pub. 595.
ventory using the cash method and enter the
result on line 35. If there is a difference
Deduction for Clean-Fuel Vehicles and
Generally, if you engaged in a trade or busi-
between last year's closing inventory and
Clean-Fuel Vehicle Refueling Property.
ness in which the production, purchase, or
the refigured amount, attach an explanation
You may deduct part of the cost of qualified
sale of merchandise was an income-
and take it into account when figuring your
clean-fuel vehicle property used in your
producing factor, you must take inventories
section
481(a)
adjustment
(explained
business and qualified clean-fuel vehicle re-
into account at the beginning and end of
above).
fueling property. See Pub. 535 for details.
your tax year.
Disabled Access Credit and the Deduction
However, if your average annual gross
for Removing Barriers to Individuals
receipts for the 3 prior tax years are $1
Line 41
With Disabilities and the Elderly. You
million or less and you are an eligible tax-
may be able to claim a tax credit of up to
payer who adopts or changes to the cash
If you are using the cash method of account-
$5,000 for eligible expenditures paid or in-
method of accounting, you will not be re-
ing and you do not want to account for
curred in 2000 to provide access to your
quired to account for inventories. If you are
inventories, enter on line 41 the portion of
business for individuals with disabilities.
not required to account for inventories and
your raw materials and merchandise pur-
See Form 8826 for details. You can also
do not want to do so, you must treat inven-
chased for resale that are included on line
deduct up to $15,000 of costs paid or in-
tory in the same manner as costs of materials
40 and were not sold during the year.
curred in 2000 to remove architectural or
and supplies that are not incidental. Under
transportation barriers to individuals with
this rule, inventory costs for raw materials
disabilities and the elderly. However, you
purchased for use in producing finished
cannot take both the credit and the deduction
goods and merchandise purchased for resale
Part V. Other
on the same expenditures.
are deductible in the year the finished goods
Expenses
or merchandise are sold (or, if later, the year
you paid for the raw materials or merchan-
Include all ordinary and necessary business
dise). Enter amounts paid for all raw mate-
expenses not deducted elsewhere on Sched-
rials and merchandise during 2000 on line
ule C. List the type and amount of each
36. The amount you can deduct for 2000 is
expense separately in the space provided.
figured on line 42.
Enter the total on lines 48 and 27. Do not
C-6

Principal Business or Professional Activity Codes
These codes for the Principal Business or Profes-
Select the category that best describes your pri-
Schedule C or C-EZ (for example, 531210, the
sional Activity classify sole proprietorships by the
mary business activity (for example, Real Estate).
Code for offices of real estate agents and brokers).
type of activity they are engaged in to facilitate the
Then select the activity that best identifies the prin-
Note. If your principal source of income is from
administration of the Internal Revenue Code. These
cipal source of your sales or receipts (for example,
farming activities, you should file Schedule F,
six-digit codes are based on the North American
real estate agent). Now find the six-digit code
Profit or Loss From Farming.
Industry Classification System (NAICS).
assigned to this activity and enter it on line B of
Accommodation, Food
Support Activities for Agriculture &
Finance & Insurance
Information
Forestry
Services, & Drinking
511000
Publishing industries
115210
Support activities for animal
Credit Intermediation & Related
Places
production (including farriers)
Activities
Broadcasting & Telecommunications
115110
Support activities for crop
522100
Depository credit
Accommodation
513000
Broadcasting &
production (including cotton
intermediation (including
telecommunications
721310
Rooming & boarding houses
ginning, soil preparation,
commercial banking, savings
721210
RV (recreational vehicle) parks
planting, & cultivating)
institutions, & credit unions)
Information Services & Data
& recreational camps
115310
Support activities for forestry
522200
Nondepository credit
Processing Services
721100
Travel accommodation
intermediation (including sales
514210
Data processing services
(including hotels, motels, &
Arts, Entertainment, &
financing & consumer lending)
514100
Information services (including
bed & breakfast inns)
Recreation
522300
Activities related to credit
news syndicates, libraries, &
intermediation (including loan
on-line information services)
Food Services & Drinking Places
Amusement, Gambling, & Recreation
brokers)
722410
Drinking places (alcoholic
Motion Picture & Sound Recording
Industries
beverages)
Insurance Agents, Brokers, & Related
512100
Motion picture & video
722110
Full-service restaurants
713100
Amusement parks & arcades
Activities
industries (except video rental)
722210
Limited-service eating places
713200
Gambling industries
524210
Insurance agencies &
512200
Sound recording industries
722300
Special food services
713900
Other amusement & recreation
brokerages
(including food service
services (including golf
524290
Other insurance related
Manufacturing
contractors & caterers)
courses, skiing facilities,
activities
marinas, fitness centers,
315000
Apparel mfg.
Administrative &
bowling centers, skating rinks,
Securities, Commodity Contracts, &
312000
Beverage & tobacco product
miniature golf courses)
Other Financial Investments &
mfg.
Support and Waste
Related Activities
334000
Computer & electronic product
Museums, Historical Sites, & Similar
Management &
mfg.
Institutions
523140
Commodity contracts brokers
335000
Electrical equipment,
Remediation Services
523130
Commodity contracts dealers
712100
Museums, historical sites, &
appliance, & component mfg.
523110
Investment bankers &
similar institutions
332000
Fabricated metal product mfg.
Administrative & Support Services
securities dealers
337000
Furniture & related product
561430
Business service centers
Performing Arts, Spectator Sports, &
523210
Securities & commodity
mfg.
(including private mail centers
Related Industries
exchanges
333000
Machinery mfg.
& copy shops)
711410
Agents & managers for artists,
523120
Securities brokers
339110
Medical equipment & supplies
561740
Carpet & upholstery cleaning
athletes, entertainers, & other
523900
Other financial investment
mfg.
services
public figures
activities (including investment
322000
Paper mfg.
561440
Collection agencies
711510
Independent artists, writers, &
advice)
324100
Petroleum & coal products
561450
Credit bureaus
performers
Health Care & Social
mfg.
561410
Document preparation services
711100
Performing arts companies
326000
Plastics & rubber products
561300
Employment services
711300
Promoters of performing arts,
Assistance
mfg.
561710
Exterminating & pest control
sports, & similar events
Ambulatory Health Care Services
331000
Primary metal mfg.
services
711210
Spectator sports (including
323100
Printing & related support
561210
Facilities support
professional sports clubs &
621610
Home health care services
activities
(management) services
racetrack operations)
621510
Medical & diagnostic
313000
Textile mills
561600
Investigation & security
laboratories
314000
Textile product mills
services
Construction
621310
Offices of chiropractors
336000
Transportation equipment mfg.
561720
Janitorial services
233110
Land subdivision & land
621210
Offices of dentists
321000
Wood product mfg.
561730
Landscaping services
development
621330
Offices of mental health
339900
Other miscellaneous mfg.
561110
Office administrative services
233300
Nonresidential building
practitioners (except
561420
Telephone call centers
construction
physicians)
Chemical Manufacturing
(including telephone answering
233200
Residential building
621320
Offices of optometrists
325100
Basic chemical mfg.
services & telemarketing
construction
621340
Offices of physical,
325500
Paint, coating, & adhesive
bureaus)
occupational & speech
Heavy Construction
mfg.
561500
Travel arrangement &
therapists, & audiologists
325300
Pesticide, fertilizer, & other
reservation services
234100
Highway, street, bridge, &
621111
Offices of physicians (except
agricultural chemical mfg.
561490
Other business support
tunnel construction
mental health specialists)
325410
Pharmaceutical & medicine
services (including
234900
Other heavy construction
621112
Offices of physicians, mental
mfg.
repossession services, court
health specialists
Special Trade Contractors
325200
Resin, synthetic rubber, &
reporting, & stenotype
621391
Offices of podiatrists
artificial & synthetic fibers &
services)
235500
Carpentry & floor contractors
621399
Offices of all other
filaments mfg.
561790
Other services to buildings &
235710
Concrete contractors
miscellaneous health
325600
Soap, cleaning compound, &
dwellings
235310
Electrical contractors
practitioners
toilet preparation mfg.
561900
Other support services
235400
Masonry, drywall, insulation,
621400
Outpatient care centers
325900
Other chemical product &
(including packaging &
& tile contractors
621900
Other ambulatory health care
preparation mfg.
labeling services, &
235210
Painting & wall covering
services (including ambulance
convention & trade show
contractors
services, blood, & organ
Food Manufacturing
organizers)
235110
Plumbing, heating, &
banks)
311110
Animal food mfg.
air-conditioning contractors
Waste Management & Remediation
Hospitals
311800
Bakeries & tortilla mfg.
235610
Roofing, siding, & sheet metal
Services
311500
Dairy product mfg.
contractors
622000
Hospitals
311400
Fruit & vegetable preserving
562000
Waste management &
235810
Water well drilling contractors
Nursing & Residential Care Facilities
& speciality food mfg.
remediation services
235900
Other special trade contractors
623000
Nursing & residential care
311200
Grain & oilseed milling
Agriculture, Forestry,
facilities
311610
Animal slaughtering &
processing
Hunting, & Fishing
Educational Services
Social Assistance
311710
Seafood product preparation &
611000
Educational services (including
112900
Animal production (including
624410
Child day care services
packaging
schools, colleges, &
breeding of cats and dogs)
624200
Community food & housing,
311300
Sugar & confectionery product
114110
Fishing
universities)
& emergency & other relief
mfg.
113000
Forestry & logging (including
services
311900
Other food mfg. (including
forest nurseries & timber
624100
Individual & family services
coffee, tea, flavorings, &
tracts)
624310
Vocational rehabilitation
seasonings)
114210
Hunting & trapping
services
C-7

Principal Business or Professional Activity Codes (continued)
Leather & Allied Product
541350
Building inspection services
448110
Men's clothing stores
Transportation &
Manufacturing
541340
Drafting services
448210
Shoe stores
541330
Engineering services
448120
Women's clothing stores
Warehousing
316210
Footwear mfg. (including
541360
Geophysical surveying &
448190
Other clothing stores
481000
Air transportation
leather, rubber, & plastics)
mapping services
485510
Charter bus industry
316110
Leather & hide tanning &
Electronic & Appliance Stores
541320
Landscape architecture services
484110
General freight trucking, local
finishing
541370
Surveying & mapping (except
443130
Camera & photographic
484120
General freight trucking,
316990
Other leather & allied product
geophysical) services
supplies stores
long-distance
mfg.
541380
Testing laboratories
443120
Computer & software stores
485210
Interurban & rural bus
Nonmetallic Mineral Product
443111
Household appliance stores
transportation
Manufacturing
Computer Systems Design & Related
443112
Radio, television, & other
486000
Pipeline transportation
Services
327300
Cement & concrete product
electronics stores
482110
Rail transportation
mfg.
541510
Computer systems design &
Food & Beverage Stores
487000
Scenic & sightseeing
327100
Clay product & refractory mfg.
related services
transportation
327210
Glass & glass product mfg.
445310
Beer, wine, & liquor stores
Specialized Design Services
485410
School & employee bus
327400
Lime & gypsum product mfg.
445220
Fish & seafood markets
transportation
541400
Specialized design services
327900
Other nonmetallic mineral
445230
Fruit & vegetable markets
484200
Specialized freight trucking
(including interior, industrial,
product mfg.
445100
Grocery stores (including
(including household moving
graphic, & fashion design)
supermarkets & convenience
vans)
Mining
Other Professional, Scientific, &
stores without gas)
485300
Taxi & limousine service
445210
Meat markets
212110
Coal mining
Technical Services
485110
Urban transit systems
445290
Other specialty food stores
212200
Metal ore mining
541800
Advertising & related services
483000
Water transportation
212300
Nonmetallic mineral mining &
541600
Management, scientific, &
Furniture & Home Furnishing Stores
485990
Other transit & ground
quarrying
technical consulting services
passenger transportation
442110
Furniture stores
211110
Oil & gas extraction
541910
Market research & public
488000
Support activities for
442200
Home furnishings stores
213110
Support activities for mining
opinion polling
transportation (including motor
541920
Photographic services
Gasoline Stations
vehicle towing)
Other Services
541700
Scientific research &
447100
Gasoline stations (including
Couriers & Messengers
development services
convenience stores with gas)
Personal & Laundry Services
492000
Couriers & messengers
541930
Translation & interpretation
812111
Barber shops
General Merchandise Stores
services
Warehousing & Storage Facilities
812112
Beauty salons
541940
Veterinary services
452000
General merchandise stores
493100
Warehousing & storage
812220
Cemeteries & crematories
541990
All other professional,
Health & Personal Care Stores
(except lessors of
812310
Coin-operated laundries &
scientific, & technical services
miniwarehouses & self-storage
drycleaners
446120
Cosmetics, beauty supplies, &
units)
812320
Drycleaning & laundry
Real Estate & Rental &
perfume stores
services (except coin-operated)
446130
Optical goods stores
Leasing
Utilities
(including laundry &
446110
Pharmacies & drug stores
drycleaning drop off & pickup
Real Estate
446190
Other health & personal care
221000
Utilities
sites)
stores
531100
Lessors of real estate
812210
Funeral homes & funeral
Wholesale Trade
(including miniwarehouses &
Motor Vehicle & Parts Dealers
services
self-storage units)
441300
Automotive parts, accessories,
Wholesale Trade, Durable Goods
812330
Linen & uniform supply
531210
Offices of real estate agents &
& tire stores
421600
Electrical goods
812113
Nail salons
brokers
441222
Boat dealers
421200
Furniture & home furnishing
812930
Parking lots & garages
531320
Offices of real estate
441221
Motorcycle dealers
421700
Hardware, & plumbing &
812910
Pet care (except veterinary)
appraisers
441110
New car dealers
heating equipment & supplies
services
531310
Real estate property managers
441210
Recreational vehicle dealers
421940
Jewelry, watch, precious stone,
812920
Photofinishing
531390
Other activities related to real
(including motor home &
& precious metals
812190
Other personal care services
estate
travel trailer dealers)
421300
Lumber & other construction
(including diet & weight
441120
Used car dealers
materials
reducing centers)
Rental & Leasing Services
441229
All other motor vehicle dealers
421800
Machinery, equipment, &
812990
All other personal services
532100
Automotive equipment rental
supplies
& leasing
Sporting Goods, Hobby, Book, &
Repair & Maintenance
421500
Metal & mineral (except
532400
Commercial & industrial
Music Stores
811120
Automotive body, paint,
petroleum)
machinery & equipment rental
451211
Book stores
interior, & glass repair
421100
Motor vehicle & motor vehicle
& leasing
451120
Hobby, toy, & game stores
811110
Automotive mechanical &
parts & supplies
532210
Consumer electronics &
451140
Musical instrument & supplies
electrical repair & maintenance
421400
Professional & commercial
appliances rental
stores
811190
Other automotive repair &
equipment & supplies
532220
Formal wear & costume rental
451212
News dealers & newsstands
maintenance (including oil
421930
Recyclable materials
532310
General rental centers
451220
Prerecorded tape, compact
change & lubrication shops &
421910
Sporting & recreational goods
532230
Video tape & disc rental
disc, & record stores
car washes)
& supplies
532290
Other consumer goods rental
451130
Sewing, needlework, & piece
811310
Commercial & industrial
421920
Toy & hobby goods &
goods stores
machinery & equipment
Religious, Grantmaking,
supplies
451110
Sporting goods stores
(except automotive &
421990
Other miscellaneous durable
electronic) repair &
Civic, Professional, &
Miscellaneous Store Retailers
goods
maintenance
Similar Organizations
453920
Art dealers
Wholesale Trade, Nondurable Goods
811210
Electronic & precision
813000
Religious, grantmaking, civic,
453110
Florists
422300
Apparel, piece goods, &
equipment repair &
professional, & similar
453220
Gift, novelty, & souvenir
notions
maintenance
organizations
stores
422800
Beer, wine, & distilled
811430
Footwear & leather goods
453930
Manufactured (mobile) home
alcoholic beverage
repair
Retail Trade
dealers
422920
Books, periodicals, &
811410
Home & garden equipment &
453210
Office supplies & stationery
newspapers
appliance repair &
Building Material & Garden Equipment
stores
422600
Chemical & allied products
maintenance
& Supplies Dealers
453910
Pet & pet supplies stores
422210
Drugs & druggists' sundries
811420
Reupholstery & furniture repair
444130
Hardware stores
453310
Used merchandise stores
422500
Farm product raw materials
811490
Other personal & household
444110
Home centers
453990
All other miscellaneous store
422910
Farm supplies
goods repair & maintenance
444200
Lawn & garden equipment &
retailers (including tobacco,
422930
Flower, nursery stock, &
supplies stores
Professional, Scientific,
candle, & trophy shops)
florists' supplies
444120
Paint & wallpaper stores
422400
Grocery & related products
& Technical Services
444190
Other building materials
Nonstore Retailers
422950
Paint, varnish, & supplies
dealers
454110
Electronic shopping &
541100
Legal services
422100
Paper & paper products
mail-order houses
541211
Offices of certified public
Clothing & Accessories Stores
422700
Petroleum & petroleum
454310
Fuel dealers
accountants
448130
Children's & infants' clothing
products
454210
Vending machine operators
541214
Payroll services
stores
422940
Tobacco & tobacco products
454390
Other direct selling
541213
Tax preparation services
448150
Clothing accessories stores
422990
Other miscellaneous
establishments (including
541219
Other accounting services
448140
Family clothing stores
nondurable goods
door-to-door retailing, frozen
Architectural, Engineering, & Related
448310
Jewelry stores
food plan providers, party plan
999999
Unclassified establishments
Services
448320
Luggage & leather goods
merchandisers, & coffee-break
(unable to classify)
stores
541310
Architectural services
service providers)
C-8

2000
Use Schedule D (Form 1040) to report:
The sale or exchange of a capital asset (defined on this page) not reported on another
Instructions for
form or schedule.
Gains from involuntary conversions (other than from casualty or theft) of capital assets
Schedule D,
not held for business or profit.
Capital gain distributions not reported directly on Form 1040, line 13.
Capital Gains
Nonbusiness bad debts.
Additional Information. See Pub. 544 and Pub. 550 for more details. For a comprehensive
and Losses
filled-in example of Schedule D, see Pub. 550.
Section references are to the Internal Revenue Code unless otherwise noted.
capital asset is any property held by you
If you disposed of property that you ac-
General Instructions
except the following.
quired by inheritance, report the disposition
Stock in trade or other property includ- as a long-term gain or loss, regardless of
how long you held the property.
Other Forms You May Have
ed in inventory or held mainly for sale to
customers.
A nonbusiness bad debt must be treated
To File
Accounts or notes receivable for serv- as a short-term capital loss. See Pub. 550
Use Form 4797 to report the following.
ices performed in the ordinary course of
for what qualifies as a nonbusiness bad debt

and how to enter it on Schedule D.
The sale or exchange of:
your trade or business or as an employee,
or from the sale of stock in trade or other
1. Property used in a trade or business;
property held mainly for sale to customers.
Capital Gain Distributions
2. Depreciable and amortizable property;
Depreciable property used in your trade These distributions are paid by mutual funds
3. Oil, gas, geothermal, or other mineral
or business, even if it is fully depreciated.
(or other regulated investment companies)
property; and
Real estate used in your trade or busi- from their net realized long-term capital
4. Section 126 property.
ness.
gains. Enter on line 13, column (f), the total
The involuntary conversion (other than
Copyrights, literary, musical, or artistic capital gain distributions paid to you during
from casualty or theft) of property used in
compositions, letters or memoranda, or sim-
the year, regardless of how long you held
a trade or business and capital assets held
ilar property: (a) created by your personal
your investment. This amount is shown in
for business or profit.
efforts; (b) prepared or produced for you (in
box 2a of Form 1099-DIV. Include on line

13, column (g), the total of the amounts
The disposition of noncapital assets
the case of letters, memoranda, or similar
reported to you as 28% rate gain from col-
other than inventory or property held pri-
property); or (c) that you received from
lectibles. This amount is shown in box 2b
marily for sale to customers in the ordinary
someone who created them or for whom
of Form 1099-DIV.
course of your trade or business.
they were created, as mentioned in (a) or

(b), in a way (such as by gift) that entitled
If you received a Form 1099-DIV with an
Ordinary loss on the sale, exchange, or
you to the basis of the previous owner.
amount in box 2c, see the Unrecaptured
worthlessness of small business investment
Section 1250 Gain Worksheet for line 25
company (section 1242) stock.
U.S. Government publications, includ- on page D-8. If you received a Form

ing the Congressional Record, that you re-
Ordinary loss on the sale, exchange, or
ceived from the government, other than by
1099-DIV with an amount in box 2d, see
worthlessness of small business (section
purchase at the normal sales price, or that
Exclusion of Gain on Qualified Small
1244) stock.
you got from someone who had received it
Business Stock (Section 1202) on page
Ordinary loss on securities held in con- in a similar way, if your basis is determined D-4.
nection with your trading business, if you
by reference to the previous owner's basis.
If you received capital gain distributions
previously made a mark-to-market election.
Certain commodities derivative finan- as a nominee (that is, they were paid to you
See Special Rules for Traders in Securi-
cial instruments held by a dealer. See section
but actually belong to someone else), report
ties beginning on page D-3.
1221(a)(6).
on line 13 only the amount that belongs to
Use Form 4684 to report involuntary con-

you. Attach a statement showing the full
Certain hedging transactions entered
versions of property due to casualty or theft.
amount you received and the amount you
into in the normal course of your trade or
Use Form 6781 to report gains and losses
received as a nominee. See the Instructions
business. See section 1221(a)(7).
from section 1256 contracts and straddles.
for Schedule B for filing requirements for
Supplies regularly used in your trade Forms 1099-DIV and 1096.
Use Form 8824 if you made one or more
or business.
"like-kind" exchanges. A like-kind ex-
Sale of Your Home
change occurs when you exchange business
Short Term or Long Term
or investment property for property of a like
If you sold or exchanged your main home
kind. For exchanges of capital assets, in-
Separate your capital gains and losses ac-
in 2000, do not report it on your tax return
clude the gain or (loss) from Form 8824, if
cording to how long you held or owned the
unless your gain exceeds your exclusion
any, on line 4 or line 11.
property. The holding period for short-term
amount. Generally, if you meet the two tests
capital gains and losses is 1 year or less. The
on page D-2, you can exclude up to
Capital Asset
holding period for long-term capital gains
$250,000 of gain. If both you and your
and losses is more than 1 year. To figure
spouse meet these tests and you file a joint
Most property you own and use for personal
the holding period, begin counting on the
return, you can exclude up to $500,000 of
purposes, pleasure, or investment is a capital
day after you received the property and in-
gain (but only one spouse needs to meet the
asset. For example, your house, furniture,
clude the day you disposed of it.
ownership requirement in Test 1).
car, stocks, and bonds are capital assets. A
D-1
Cat. No. 24331I

Test 1. You owned and used the home as
Nondeductible Losses
In general, no gain or loss is recognized
your main home for 2 years or more during
on the transfer of property from an individ-
the 5-year period ending on the date you
Do not deduct a loss from the direct or
ual to a spouse or a former spouse if the
sold or exchanged your home.
indirect sale or exchange of property be-
transfer is incident to a divorce. See Pub.
tween any of the following.
Test 2. You have not sold or exchanged
504.
another main home during the 2-year period
Members of a family.
Amounts received on the retirement of
ending on the date of the sale or exchange
A corporation and an individual a debt instrument generally are treated as
of your home.
owning more than 50% of the corporation's
received in exchange for the debt instru-
See Pub. 523 for details, including how
stock (unless the loss is from a distribution
ment. See Pub. 550.
to report any taxable gain on Schedule D,
in complete liquidation of a corporation).
Any loss on the disposition of convert-
if:
A grantor and a fiduciary of a trust.
ed wetland or highly erodible cropland that
You do not meet one of the above two
A fiduciary and a beneficiary of the is first used for farming after March 1, 1986,
tests,
same trust.
is reported as a long-term capital loss on

Schedule D, but any gain is reported as or-
You (or your spouse if married) used
A fiduciary and a beneficiary of another dinary income on Form 4797.
any part of the home for business or rental
trust created by the same grantor.
purposes after May 6, 1997, or

Amounts received by shareholders in
An executor of an estate and a benefi-

corporate liquidations. See Pub. 550.
Your gain exceeds your exclusion
ciary of that estate, unless the sale or ex-
amount.
change was to satisfy a pecuniary bequest
Cash received in lieu of fractional
(that is, a bequest of a sum of money).
shares of stock as a result of a stock split or
Partnership Interests

stock dividend. See Pub. 550 for details.
An individual and a tax-exempt organ-
ization controlled by the individual or the
Mutual fund load charges may not be
A sale or other disposition of an interest in
individual's family.
taken into account in determining gain or
a partnership may result in ordinary income,
loss on certain dispositions of stock in
collectibles gain (28% rate gain), or unre-
See Pub. 544 for more details on sales
mutual funds if reinvestment rights were ex-
captured section 1250 gain. For details on
and exchanges between related parties.
ercised. For details, see Pub. 564.
28% rate gain, see page D-6. For details on
If you disposed of (a) an asset used in an
A sale or exchange of S corporation
unrecaptured section 1250 gain, see the
activity to which the at-risk rules apply or
stock or an interest in a trust held for more
worksheet for line 25 on page D-8.
(b) any part of your interest in an activity
than 1 year may result in collectibles gain
to which the at-risk rules apply, and you
Capital Assets Held for
(28% rate gain). For details, see page D-6.
have amounts in the activity for which you
Personal Use
are not at risk, see the instructions for Form
Certain constructive ownership trans-
6198.
actions. Gain in excess of the gain you
Generally, gain from the sale or exchange
would have recognized if you had held a
If the loss is allowable under the at-risk
of a capital asset held for personal use is a
financial asset directly during the term of a
rules, it may then be subject to the passive
capital gain. Report it on Schedule D, Part
derivative contract must be treated as ordi-
activity rules. See Form 8582 and its in-
I or Part II. However, if you converted de-
nary income. See section 1260 for details.
structions for details on reporting capital
preciable property to personal use, all or part
If any portion of the constructive ownership
gains and losses from a passive activity.
of the gain on the sale or exchange of that
transaction was open in any prior year, you
property may have to be recaptured as or-
may have to pay interest. See section
Items for Special Treatment
dinary income. Use Part III of Form 4797
1260(b) for details, including how to figure
to figure the amount of ordinary income
Transactions by a securities dealer. See the interest. Include the interest as an addi-
recapture. The recapture amount is included
section 1236.
tional tax on Form 1040, line 57. Write
on line 31 (and line 13) of Form 4797. Do
Bonds and other debt instruments. See "Section 1260(b) interest" and the amount
not enter any gain for this property on line
Pub. 550 for details.
of the interest to the left of line 57. This
32 of Form 4797. If you are not completing

interest is not deductible.
Certain real estate subdivided for sale
Part III for any other properties, enter "N/A"
that may be considered a capital asset. See
on line 32. If the total gain is more than the
Wash Sales
section 1237.
recapture amount, enter "From Form 4797"
in column (a) of line 1 or line 8 of Schedule
Gain on the sale of depreciable prop- A wash sale occurs when you sell or other-
D, skip columns (b) through (e), and in
erty to a more than 50% owned entity or to
wise dispose of stock or securities (including
column (f) enter the excess of the total gain
a trust of which you are a beneficiary. See
a contract or option to acquire or sell stock
over the recapture amount.
Pub. 544 for details.
or securities) at a loss and, within 30 days
before or after the sale or disposition, you
Loss from the sale or exchange of a cap-
Gain on the disposition of stock in an directly or indirectly:
ital asset held for personal use is not deduct-
interest charge domestic international sales

ible. But if you had a loss from the sale or
corporation. See section 995(c).
Buy substantially identical stock or se-
exchange of real estate held for personal use

curities,
Gain on the sale or exchange of stock
for which you received a Form 1099-S, you
in certain foreign corporations. See section
Acquire substantially identical stock or
must report the transaction on Schedule D
1248.
securities in a fully taxable trade, or
even though the loss is not deductible. For
Transfer of property to a partnership
Enter into a contract or option to ac-
example, you have a loss on the sale of a
that would be treated as an investment com-
quire substantially identical stock or securi-
vacation home that is not your main home
pany if it were incorporated. See Pub. 541.
ties.
and received a Form 1099-S for the trans-

You cannot deduct losses from wash
action. Report the transaction on line 1 or
Sales of stock received under a quali-
sales unless the loss was incurred in the
8, depending on how long you owned the
fied public utility dividend reinvestment
ordinary course of your business as a dealer
home. Complete columns (a) through (e).
plan. See Pub. 550 for details.
in stock or securities. The basis of the sub-
Because the loss is not deductible, enter zero
Transfer of appreciated property to a stantially identical property (or contract or
in column (f).
political organization. See section 84.
option to acquire such property) is its cost
D-2

increased by the disallowed loss. For more
securities) from a trading business on Sched-
Constructive Sale
details on wash sales, see Pub. 550.
ule C (instead of Schedule A).
Treatment for Certain
Report a wash sale transaction on line 1
A trader also may hold securities for in-
Appreciated Positions
or 8. Enter the full amount of the (loss) in
vestment. The rules for investors generally
column (f). Directly below the line on which
will apply to those securities. Allocate in-
Generally, you must recognize gain (but not
you reported the loss, enter "Wash Sale" in
terest and other expenses between your trad-
loss) on the date you enter into a construc-
column (a), and enter as a positive amount
ing business and your investment securities.
tive sale of any appreciated position in stock,
in column (f) the amount of the loss not
a partnership interest, or certain debt instru-
allowed.
Mark-To-Market Election for
ments as if the position were disposed of at
Traders
fair market value on that date.
Special Rules for Traders in
A trader may make an election under section
You are treated as making a constructive
Securities
475(f) to report all gains and losses from
sale of an appreciated position when you (or
a related person, in some cases) do one of
You are a trader in securities if you are
securities held in connection with a trading
the following.
engaged in the business of buying and sell-
business as ordinary income (or loss), in-
Enter into a short sale of the same or
ing securities for your own account. To be
cluding securities held at the end of the year.
substantially identical property (that is, a
engaged in business as a trader in securities:
Securities held at the end of the year are
"short sale against the box").

"marked to market" by treating them as if
You must seek to profit from daily
they were sold (and reacquired) for fair
Enter into an offsetting notional prin-
market movements in the prices of securi-
market value on the last business day of the
cipal contract relating to the same or sub-
ties and not from dividends, interest, or cap-
year. Generally, the election must be made
stantially identical property.
ital appreciation.
by the due date (not including extensions)

Enter into a futures or forward contract
Your activity must be substantial.
of the tax return for the year prior to the
to deliver the same or substantially identical
You must carry on the activity with year for which the election becomes effec- property.
continuity and regularity.
tive. To be effective for 2000, the election
must have been made by April 17, 2000.
Acquire the same or substantially iden-
The following facts and circumstances
tical property (if the appreciated position is
should be considered in determining if your
Starting with the year the election be-
a short sale, offsetting notional principal
activity is a business.
comes effective, a trader reports all gains
contract, or a futures or forward contract).

and losses from securities held in connection
Typical holding periods for securities
with the trading business, including securi-
bought and sold.
Exception. Generally, constructive sale
ties held at the end of the year, in Part II of
The frequency and dollar amount of
treatment does not apply if:
Form 4797. If you previously made the elec-
your trades during the year.

tion, see the instructions for Form 4797. For
You closed the transaction before the
The extent to which you pursue the details on making the mark-to-market elec- end of the 30th day after the end of the year
activity to produce income for a livelihood.
tion for 2001, see Pub. 550 or Rev. Proc.
in which it was entered into,

The amount of time you devote to the
99-17, 1999-7 I.R.B. 52.
You held the appreciated position to
activity.
If you hold securities for investment, they
which the transaction relates throughout the
60-day period starting on the date the trans-
You are considered an investor, and not
must be identified as such in your records
action was closed, and
a trader, if your activity does not meet the
on the day they are acquired (for example,

above definition of a business. It does not
by holding the securities in a separate bro-
At no time during that 60-day period
matter whether you call yourself a trader or
kerage account). Securities held for invest-
was your risk of loss reduced by holding
a "day trader."
ment are not marked-to-market.
certain other positions.
Like an investor, a trader must report each
For details and other exceptions to these
Short Sales
sale of securities (taking into account com-
rules, see Pub. 550.
missions and any other costs of acquiring or
A short sale is a contract to sell property
disposing of the securities) on Schedule D
Gain or Loss From Options
you borrowed for delivery to a buyer. At a
or D-1 or on an attached statement contain-
later date, you either buy substantially iden-
Report on Schedule D gain or loss from the
ing all the same information for each sale
tical property and deliver it to the lender or
closing or expiration of an option that is not
in a similar format. However, if a trader
deliver property that you held but did not
a section 1256 contract but is a capital asset
previously made the mark-to-market elec-
want to transfer at the time of the sale. Usu-
in your hands. If an option you purchased
tion (see below), each transaction is reported
ally, your holding period is the amount of
expired, enter the expiration date in column
in Part II of Form 4797 instead of Schedules
time you actually held the property eventu-
(c) and enter "EXPIRED" in column (d).
D and D-1. Regardless of whether a trader
ally delivered to the lender to close the short
If an option that was granted (written) ex-
reports his or her gains and losses on Sched-
sale. However, your gain when closing a
pired, enter the expiration date in column
ules D and D-1 or Form 4797, the gain or
short sale is short term if you (a) held sub-
(b) and enter "EXPIRED" in column (e).
loss from the disposition of securities is not
stantially identical property for 1 year or less
Fill in the other columns as appropriate. See
taken into account when figuring net earn-
on the date of the short sale or (b) acquired
Pub. 550 for more details.
ings from self-employment on Schedule SE.
property substantially identical to the prop-
See the Instructions for Schedule SE for an
erty sold short after the short sale but on or
Undistributed Capital Gains
exception that applies to section 1256 con-
before the date you close the short sale.
tracts.
If you held substantially identical proper-
Include on line 11, column (f), the amount
The limitation on investment interest ex-
ty for more than 1 year on the date of a short
from box 1a of Form 2439. This represents
pense that applies to investors does not
sale, any loss realized on the short sale is a
your share of the undistributed long-term
apply to interest paid or incurred in a trading
long-term capital loss, even if the property
capital gains of the regulated investment
business. A trader reports interest expense
used to close the short sale was held 1 year
company (including a mutual fund) or real
and other expenses (excluding commissions
or less.
estate investment trust.
and other costs of acquiring or disposing of
Include on line 11, column (g), the
amount, if any, from box 1b of Form 2439.
D-3

If there is an amount in box 1c of Form
farmers' cooperative. See section 1042(g)
Specialized Small Business
2439, see the worksheet for line 25 on page
for details and exceptions.
Investment Companies
D-8. If there is an amount in box 1d of Form
You must make the election no later than
(SSBICs)
2439, see Exclusion of Gain on Qualified
the due date (including extensions) for filing
Small Business Stock (Section 1202) on
your tax return for the year in which you
If you sold publicly traded securities, you
this page.
sold the stock. If your original return was
may elect to postpone all or part of the gain
Enter on Form 1040, line 64, the tax paid,
filed on time, you may make the election on
on that sale if you bought common stock or
as shown in box 2 of Form 2439. Add to
an amended return filed no later than 6
a partnership interest in an SSBIC during
the basis of your stock the excess of the
months after the due date of your return
the 60-day period that began on the date of
amount included in income over the amount
(excluding extensions). Write "Filed pursu-
the sale. An SSBIC is any partnership or
of the credit for the tax paid. See Pub. 550
ant to section 301.9100-2" at the top of the
corporation licensed by the Small Business
for details.
amended return, and file it at the same ad-
Administration under section 301(d) of the
dress you used for your original return.
Small Business Investment Act of 1958.
Installment Sales
To make the election, report the entire
You must recognize gain to the extent the
gain realized on the sale on line 8. Directly
sale proceeds exceed the cost (not taken into
If you sold property (other than publicly
below the line on which you reported the
account previously) of your SSBIC stock or
traded stocks or securities) at a gain and you
gain, enter in column (a) "Section 1042 elec-
partnership interest purchased during the
will receive a payment in a tax year after
tion," and enter as a (loss) in column (f) the
60-day period that began on the date of the
the year of sale, you generally must report
amount of the gain you are postponing or
sale. The gain you may elect to postpone is
the sale on the installment method unless
expect to postpone. If the actual postponed
limited to $50,000 a year and $500,000
you elect not to. Use Form 6252 to report
gain is different from the amount you report,
during your lifetime (reduce these amounts
the sale on the installment method. Also use
file an amended return.
by one-half if you are married filing sepa-
Form 6252 to report any payment received
rately). Reduce the basis of your SSBIC
in 2000 from a sale made in an earlier year
Also attach the following statements.
stock or partnership interest by any post-
that you reported on the installment method.
1. A "statement of election" that indicates
poned gain.
To elect out of the installment method,
you are making an election under section
You must make the election no later than
report the full amount of the gain on Sched-
1042(a) and that includes the following in-
the due date (including extensions) for filing
ule D on a timely filed return (including
formation: (a) a description of the securities
your tax return for the year in which you
extensions) for the year of the sale. If your
sold, the date of the sale, the amount realized
sold the securities. If your original return
original return was filed on time, you may
on the sale, and the adjusted basis of the
was filed on time, you may make the elec-
make the election on an amended return
qualified securities; (b) the name of the
tion on an amended return filed no later than
filed no later than 6 months after the due
ESOP or cooperative to which the qualified
6 months after the due date of your return
date of your return (excluding extensions).
securities were sold; and (c) for a sale that
(excluding extensions). Write "Filed pursu-
Write
"Filed
pursuant
to
section
was part of a single, interrelated transaction
ant to section 301.9100-2" at the top of the
301.9100-2" at the top of the amended
under a prearranged agreement between tax-
amended return, and file it at the same ad-
return, and file it at the same address you
payers involving other sales of qualified se-
dress you used for your original return.
used for your original return.
curities, the names and identifying numbers
of the other taxpayers under the agreement
To make the election, report the entire
gain realized on the sale on line 1 or 8.
Sales of Stock to ESOPs or
and the number of shares sold by the other
Directly below the line on which you re-
Certain Cooperatives
taxpayers.
ported the gain, enter in column (a) "SSBIC
2. A notarized "statement of purchase"
rollover," and enter as a (loss) in column (f)
If you sold qualified securities (defined in
describing the qualified replacement prop-
the amount of the postponed gain. Also
section 1042(c)(1)) held for at least 3 years
erty, date of purchase, and the cost of the
attach a schedule showing (a) how you fig-
to an employee stock ownership plan
property and declaring the property to be
ured the postponed gain, (b) the name of the
(ESOP) or eligible worker-owned coopera-
qualified replacement property for the qual-
SSBIC in which you purchased common
tive, you may be able to elect to postpone
ified stock you sold. The statement must
stock or a partnership interest, (c) the date
all or part of the gain on the sale if you
have been notarized no later than 30 days
of that purchase, and (d) your new basis in
bought qualified replacement property (se-
after the purchase. If you have not yet pur-
that SSBIC stock or partnership interest.
curities) within the period that began 3
chased the qualified replacement property,
months before the sale and ended 12 months
you must attach the notarized "statement of
Exclusion of Gain on
after the sale. If you make the election, you
purchase" to your income tax return for the
must recognize gain on the sale only to the
year following the election year (or the elec-
Qualified Small Business
extent the proceeds from the sale exceed the
tion will not be valid).
Stock (Section 1202)
cost of the qualified replacement property.
3. A verified written statement of the do-
You must reduce the basis of the replace-
Section 1202 allows for an exclusion of up
mestic corporation whose employees are
ment property by any postponed gain. If you
to 50% of the eligible gain on the sale or
covered by the ESOP acquiring the qualified
dispose of any replacement property, you
exchange of qualified small business stock.
securities, or of any authorized officer of the
may have to recognize all of the postponed
The section 1202 exclusion applies only to
cooperative, consenting to the taxes under
gain.
qualified small business stock held for more
sections 4978 and 4979A on certain dispo-
than 5 years. To be qualified small business
Generally, to qualify for the election the
sitions and prohibited allocations of the
stock, the stock must meet all of the fol-
ESOP or cooperative must own immediately
stock purchased by the ESOP or coopera-
lowing tests.
after the sale at least 30% of the outstanding
tive.
stock of the corporation that issued the qual-
It must be stock in a C corporation (that
For details, see section 1042 and Tempo-
ified securities. Also, the qualified replace-
is, not S corporation stock).
rary Regulations section 1.1042-1T.
ment property must have been issued by a
It must have been originally issued
domestic operating corporation.
after August 10, 1993.
Similar rules apply to the sale of stock of
As of the date the stock was issued, the
a qualified refiner or processor to an eligible
corporation was a qualified small business
(QSB). A QSB is a domestic C corporation
D-4

with total gross assets of $50 million or less
at all times thereafter until the stock was
to postpone gain. The benefit of the post-
(a) at all times after August 9, 1993, and
sold to qualify for the exclusion.
poned gain applies to your share of the
before the stock was issued and (b) imme-
entity's postponed gain if you held an inter-
diately after the stock was issued. Gross
How To Report
est in the entity for the entire period the
assets include those of any predecessor of
entity held the QSB stock. If a pass-through
Report in column (f) of line 8 the entire gain
the corporation. All corporations that are
entity sold QSB stock held for more than 6
realized on the sale of QSB stock. In column
members of the same parent-subsidiary con-
months and you held an interest in the entity
(g) of line 8, report as 28% rate gain an
trolled group are treated as one corporation.
for the entire period the entity held the stock,
amount equal to the section 1202 exclusion.
You must have acquired the stock at its
you also may elect to postpone gain if you,
Complete all other columns as indicated.
original issue (either directly or through an
rather than the pass-through entity, purchase
Directly below the line on which you re-
underwriter), either in exchange for money
the replacement QSB stock within the
ported the gain, enter in column (a) "Section
or other property or as pay for services
60-day period.
1202 exclusion," and enter as a (loss) in
(other than as an underwriter) to the corpo-
column (f) the amount of the allowable ex-
You must recognize gain to the extent the
ration. In certain cases, you may meet the
clusion.
sale proceeds exceed the cost of the replace-
test if you acquired the stock from another
ment stock. Reduce the basis of the replace-
person who met the test (such as by gift or
Gain From Form 1099-DIV. If you re-
ment stock by any postponed gain.
inheritance) or through a conversion or ex-
ceived a Form 1099-DIV with a gain in box
You must make the election no later than
change of QSB stock you held.
2d, part or all of that gain (which is also
the due date (including extensions) for filing
During substantially all the time you included in box 2a) may be eligible for the your tax return for the tax year in which the
held the stock:
section 1202 exclusion. In column (a) of line
QSB stock was sold. If your original return
1. The corporation was a C corporation,
8, enter the name of the corporation whose
was filed on time, you may make the elec-
stock was sold. In column (f), enter the
tion on an amended return filed no later than
2. At least 80% of the value of the cor-
amount of your allowable exclusion as a
6 months after the due date of your return
poration's assets were used in the active
loss. In column (g), enter the amount of your
(excluding extensions). Write "Filed pursu-
conduct of one or more qualified businesses
allowable exclusion as a gain.
ant to section 301.9100-2" at the top of the
(defined below), and
amended return, and file it at the same ad-
3. The corporation was not a foreign cor-
Gain From Form 2439. If you received a
dress you used for your original return.
poration, DISC, former DISC, regulated in-
Form 2439 with a gain in box 1d, part or
To make the election, report the entire
vestment company, real estate investment
all of that gain (which is also included in
gain realized on the sale on line 1 or 8.
trust, REMIC, FASIT, cooperative, or a cor-
box 1a) may be eligible for the section 1202
Directly below the line on which you re-
poration that has made (or that has a sub-
exclusion. In column (a) of line 8, enter the
ported the gain, enter in column (a) "Section
sidiary that has made) a section 936 election.
name of the corporation whose stock was
1045 rollover," and enter as a (loss) in
sold. In column (f), enter the amount of your
column (f) the amount of the postponed
Note. A specialized small business invest-
allowable exclusion as a loss. In column (g),
gain.
ment company (SSBIC) is treated as having
enter the amount of your allowable exclu-
met test 2 above.
sion as a gain.
Gain From an Installment Sale of QSB
Specific Instructions
A qualified business is any business
Stock. If all payments are not received in
other than a--
the year of sale, a sale of QSB stock that is

Column (b)--Date Acquired
Business involving services performed
not traded on an established securities
in the fields of health, law, engineering, ar-
market generally is treated as an installment
Enter in this column the date the asset was
chitecture, accounting, actuarial science,
sale and is reported on Form 6252. Figure
acquired. Use the trade date for stocks and
performing arts, consulting, athletics, finan-
the allowable section 1202 exclusion for the
bonds traded on an exchange or over-the-
cial services, or brokerage services.
year by multiplying the total amount of the
counter market. For stock or other property
Business whose principal asset is the exclusion by a fraction, the numerator of sold short, enter the date the stock or prop-
reputation or skill of one or more employees.
which is the amount of eligible gain to be
erty was delivered to the broker or lender to

recognized for the tax year and the denom-
Banking, insurance, financing, leasing,
close the short sale.
inator of which is the total amount of eligi-
investing, or similar business.
If you disposed of property that you ac-
ble gain. In column (a) of line 8, enter the
Farming business (including the raising
quired by inheritance, report the gain or
name of the corporation whose stock was
or harvesting of trees).
(loss) on line 8 and enter "INHERITED"
sold. In column (f), enter the amount of your

in column (b) instead of the date you ac-
Business involving the production of
allowable exclusion as a loss. In column (g),
quired the property.
products for which percentage depletion can
enter the amount of your allowable exclu-
be claimed.
sion as a gain.
If you sold a block of stock (or similar

property) that was acquired through several
Business of operating a hotel, motel,
different purchases, you may report the sale
restaurant, or similar business.
Alternative Minimum Tax. You must enter
42% of your allowable exclusion for the
on one line and enter "VARIOUS" in
For more details about limits and addi-
year on Form 6251, line 14m.
column (b). However, you still must report
tional requirements that may apply, see sec-
the short-term gain or (loss) on the sale in
tion 1202.
Rollover of Gain From QSB
Part I and the long-term gain or (loss) in
Part II.
Pass-Through Entities
Stock
If you held an interest in a pass-through
If you sold QSB stock (defined on page D-4)
Column (c)--Date Sold
entity (a partnership, S corporation, or
that you held for more than 6 months, you
Enter in this column the date the asset was
mutual fund or other regulated investment
may elect to postpone gain if you purchase
sold. Use the trade date for stocks and bonds
company) that sold QSB stock, you must
other QSB stock during the 60-day period
traded on an exchange or over-the-counter
have held the interest on the date the pass-
that began on the date of the sale. A pass-
market. For stock or other property sold
through entity acquired the QSB stock and
through entity also may make the election
short, enter the date you sold the stock or
D-5

property you borrowed to open the short sale
be able to use the actual cost as the basis.
Column (f)--Gain or (Loss)
transaction.
If you do not use the actual cost, attach an
explanation of your basis.
You must make a separate entry in this
Column (d)--Sales Price
column for each transaction reported on
If you sold stock, adjust your basis by
lines 1 and 8 and any other line(s) that ap-
subtracting all the nontaxable distributions
Enter in this column either the gross sales
plies to you. For lines 1 and 8, subtract the
you received before the sale. Also adjust
price or the net sales price from the sale. If
amount in column (e) from the amount in
your basis for any stock splits. See Pub. 550
you sold stocks or bonds and you received
column (d). Enter negative amounts in pa-
for details.
a Form 1099-B or substitute statement from
rentheses.
your broker that shows gross sales price,
You may elect to use an average basis for
enter that amount in column (d). But if Form
all shares of a mutual fund if you acquired
Column (g)--28% Rate Gain
1099-B (or substitute statement) indicates
the shares at various times and prices and
or (Loss)
that gross proceeds minus commissions and
you left the shares on deposit in an account
option premiums were reported to the IRS,
handled by a custodian or agent who ac-
Enter in column (g) only the amount, if any,
enter that net amount in column (d). If you
quired or redeemed those shares. If you are
from Part II, column (f), that is equal to the
enter the net amount in column (d), do not
reporting an average basis, include "AVGB"
amount of your section 1202 exclusion from
include the commissions and option premi-
in column (a) of Schedule D. For details on
the eligible gain on qualified small business
ums from the sale in column (e).
making the election and how to figure av-
stock (see page D-4) or from collectibles
erage basis, see Pub. 564.
You should not have received a Form
gains and losses. A collectibles gain or loss
1099-B (or substitute statement) for a trans-
The basis of property acquired by gift is
is any long-term gain or deductible long-
action merely representing the return of your
generally the basis of the property in the
term loss from the sale or exchange of a
original investment in a nontransferable ob-
hands of the donor. The basis of property
collectible that is a capital asset.
ligation, such as a savings bond or a certif-
acquired from a decedent is generally the
Collectibles include works of art, rugs,
icate of deposit. But if you did, report the
fair market value at the date of death. See
antiques, metals (such as gold, silver, and
amount shown on Form 1099-B (or substi-
Pub. 544 for details.
platinum bullion), gems, stamps, coins, al-
tute statement) in both columns (d) and (e).
Increase the cost or other basis of an orig-
coholic beverages, and certain other tangible
inal issue discount (OID) debt instrument by
property.
Be sure to add all sales price en-
the amount of OID that has been included
tries on lines 1 and 8, column (d),
Also include gain (but not loss) from the
in gross income for that instrument.
to amounts on lines 2 and 9,
sale or exchange of an interest in a partner-
column (d). Enter the totals on
If a charitable contribution deduction is
ship, S corporation, or trust held for more
lines 3 and 10.
allowed because of a bargain sale of prop-
than 1 year and attributable to unrealized
erty to a charitable organization, the adjust-
appreciation of collectibles. For details, see
Column (e)--Cost or Other
ed basis for purposes of determining gain
Regulations section 1.1(h)-1. Also attach the
statement required under Regulations sec-
Basis
from the sale is the amount that has the same
ratio to the adjusted basis as the amount
tion 1.1(h)-1(e).
In general, the cost or other basis is the cost
realized has to the fair market value.
of the property plus purchase commissions
Increase your cost or other basis by any
Lines 1 and 8
and improvements, minus depreciation,
expense of sale, such as broker's fees, com-
Enter all sales and exchanges of capital
amortization, and depletion. If you inherited
missions, state and local transfer taxes, and
assets, including stocks, bonds, etc., and real
the property, got it as a gift, or received it
option premiums, before making an entry in
estate (if not reported on Form 4684, 4797,
in a tax-free exchange, involuntary conver-
column (e), unless you reported the net sales
6252, 6781, or 8824). Include these trans-
sion, or "wash sale" of stock, you may not
price in column (d).
actions even if you did not receive a Form
For more details, see Pub. 551.
1099-B or Form 1099-S (or substitute state-
Capital Loss Carryover Worksheet--Line 18
Keep for Your Records
Use this worksheet to figure your capital loss carryovers from 2000 to 2001 if Schedule D, line 18, is a loss and (a) that loss is a
smaller loss than the loss on Schedule D, line 17, or (b) Form 1040, line 37, is a loss. Otherwise, you do not have any carryovers.
1. Enter the amount from Form 1040, line 37. If a loss, enclose the amount in parentheses
1.
2. Enter the loss from Schedule D, line 18, as a positive amount
2.
3. Combine lines 1 and 2. If zero or less, enter -0-
3.
4. Enter the smaller of line 2 or line 3
4.
Note. If line 7 of Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to line 9.
5. Enter the loss from Schedule D, line 7, as a positive amount
5.
6. Enter any gain from Schedule D, line 16
6.
7. Add lines 4 and 6
7.
8. Short-term capital loss carryover to 2001. Subtract line 7 from line 5. If zero or less, enter -0-
8.
Note. If line 16 of Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13.
9. Enter the loss from Schedule D, line 16, as a positive amount
9.
10. Enter any gain from Schedule D, line 7
10.
11. Subtract line 5 from line 4. If zero or less, enter -0-
11.
12. Add lines 10 and 11
12.
13. Long-term capital loss carryover to 2001. Subtract line 12 from line 9. If zero or less, enter -0-
13.
D-6

ment) for the transaction. You can use ab-
(or the comparable lines of Form 4797 for
(or the comparable lines of Form 4797 for
breviations to describe the property as long
the year of sale) for the property.
the year of sale) for the property.
as they are based on the descriptions of the
Step 2. Reduce the amount figured in step
Step 2. Reduce the amount figured in
property as shown on Form 1099-B or
1 by any section 1250 ordinary income re-
step 1 by any section 1250 ordinary income
1099-S (or substitute statement).
capture for the sale. This is the amount from
recapture for the sale. This is the amount
Use Schedule D-1 if you need more space
line 26g of the 2000 Form 4797 (or the
from line 26g of the 2000 Form 4797 (or
to list transactions for lines 1 and 8. Use as
comparable line of Form 4797 for the year
the comparable line of Form 4797 for the
many Schedules D-1 as you need. Enter on
of sale) for the property. The result is your
year of sale) for the property. The result is
Schedule D, lines 2 and 9, the combined
total unrecaptured section 1250 gain that
your total unrecaptured section 1250 gain
totals from all your Schedules D-1.
must be allocated to the installment pay-
that must be allocated to the installment pay-
ments received from the sale.
ments received from the sale.
Add the following amounts re-
ported to you for 2000 on Forms
Step 3. Generally, the amount of section
Step 3. Generally, the amount of cap-
1099-B and 1099-S (or substitute
1231 gain on each installment payment is
ital gain on each installment payment is
statements) not reported on an-
treated as unrecaptured section 1250 gain
treated as unrecaptured section 1250 gain
other form or schedule: (a) proceeds from
until the total unrecaptured section 1250
until the total unrecaptured section 1250
transactions involving stocks, bonds, and
gain figured in step 2 has been used in full.
gain figured in step 2 has been used in full.
other securities and (b) gross proceeds from
Figure the amount of gain treated as unre-
Figure the amount of gain treated as unre-
real estate transactions (other than the sale
captured section 1250 gain for installment
captured section 1250 gain for installment
of your main home if you had no taxable
payments received in 2000 as the smaller
payments received in 2000 as the smaller
gain). If this total is more than the total of
of (a) the amount from line 26 or line 37 of
of (a) the amount from line 26 or line 37 of
lines 3 and 10, attach an explanation of the
the 2000 Form 6252, whichever applies, or
the 2000 Form 6252, whichever applies, or
difference.
(b) the amount of unrecaptured section 1250
(b) the amount of unrecaptured section 1250
gain remaining to be reported. This amount
gain remaining to be reported. This amount
Line 25
is generally the total unrecaptured section
is generally the total unrecaptured section
1250 gain for the sale reduced by all gain
1250 gain for the sale reduced by all gain
Complete the worksheet on page D-8 if any
reported in prior years (excluding section
reported in prior years (excluding section
of the following apply to you.
1250 ordinary income recapture). However,
1250 ordinary income recapture). However,
During 2000, you sold or otherwise dis- if you chose not to treat all of the gain from if you chose not to treat all of the gain from
posed of section 1250 property (generally,
payments received after May 6, 1997, and
payments received after May 6, 1997, and
real property that you depreciated) held
before August 24, 1999, as unrecaptured
before August 24, 1999, as unrecaptured
more than 1 year.
section 1250 gain, use only the amount you
section 1250 gain, use only the amount you

chose to treat as unrecaptured section 1250
chose to treat as unrecaptured section 1250
You received installment payments in
gain for those payments to reduce the total
gain for those payments to reduce the total
2000 for section 1250 property held more
unrecaptured section 1250 gain remaining to
unrecaptured section 1250 gain remaining to
than 1 year for which you are reporting gain
be reported for the sale. Include this amount
be reported for the sale. Include this amount
on the installment method.
on line 4.
on line 12.
You received a Schedule K-1 from an
Other sales or dispositions of section
estate or trust, partnership, or S corporation
Line 10. Include on line 10 your share of
1250 property. For each sale of property
that shows "unrecaptured section 1250 gain"
the partnership's unrecaptured section 1250
held more than 1 year (for which you did
reportable for 2000.
gain that would result if the partnership had
not make an entry in Part I of Form 4797),
You received a Form 1099-DIV or transferred all of its section 1250 property figure the smaller of (a) the depreciation
Form 2439 from a real estate investment
in a fully taxable transaction immediately
allowed or allowable or (b) the total gain
trust or regulated investment company (in-
before you sold or exchanged your interest
for the sale. This is the smaller of line 22
cluding a mutual fund) that reports "unre-
in that partnership. If you recognized less
or line 24 of Form 4797 for the property.
captured section 1250 gain" for 2000.
than all of the realized gain, the partnership
Next, reduce that amount by any section
You reported a long-term capital gain will be treated as having transferred only a 1250 ordinary income recapture for the sale.
from the sale or exchange of an interest in
proportionate amount of each section 1250
This is the amount from line 26g of Form
a partnership that owned section 1250 prop-
property. For details, see Regulations sec-
4797 for the property. The result is the total
erty.
tion 1.1(h)-1. Also attach the statement re-
unrecaptured section 1250 gain for the sale.
quired
under
Regulations
section
Include this amount on line 12.
Instructions for the Unrecaptured
1.1(h)-1(e).
Section 1250 Gain Worksheet
Line 12. An example of an amount to in-
Lines 1 through 3. If you had more than
clude on line 12 is unrecaptured section
one property described on line 1, complete
1250 gain from the sale of a vacation home
lines 1 through 3 for each property on a
you previously used as a rental property but
separate worksheet. Enter the total of the
converted to personal use prior to the sale.
line 3 amounts for all properties on line 3
To figure the amount to enter on line 12,
and go to line 4.
follow the applicable instructions below.
Installment sales. To figure the amount
Line 4. To figure the amount to enter on
to include on line 12, follow the steps below
line 4, follow the steps below for each in-
for each installment sale of property held
stallment sale of trade or business property
more than 1 year for which you did not make
held more than 1 year.
an entry in Part I of Form 4797 for the year
Step 1. Figure the smaller of (a) the de-
of sale.
preciation allowed or allowable or (b) the
Step 1. Figure the smaller of (a) the
total gain for the sale. This is the smaller
depreciation allowed or allowable or (b) the
of line 22 or line 24 of the 2000 Form 4797
total gain for the sale. This is the smaller
of line 22 or line 24 of the 2000 Form 4797
D-7

Unrecaptured Section 1250 Gain Worksheet--Line 25
Keep for Your Records
Note: If you are not reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to line 10.
1. Did you have a section 1250 property in Part III of Form 4797 for which you made an entry in Part I
of Form 4797 (but not on Form 6252)?
No. Leave lines 1 through 3 blank. Go to line 4.
Yes. Enter the smaller of line 22 or line 24 of Form 4797 for that property. If you had more than
one such property, see instructions
1.
2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on line 1
2.
3. Subtract line 2 from line 1
3.
4. Do you have any unrecaptured section 1250 gain from an installment sale of trade or business property
held more than 1 year that you are reporting on Form 6252?
No. Leave line 4 blank. Go to line 5.
Yes. Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252
from installment sales of trade or business property held more than 1 year (see instructions)
4.
5. Was any amount reported to you on a Schedule K-1 from a partnership or an S corporation as
"unrecaptured section 1250 gain"?
No. Leave line 5 blank. Go to line 6.
Yes. Enter the total amount of that unrecaptured section 1250 gain
5.
6. Add lines 3 through 5
6.
7. Enter the smaller of line 6 or the gain from Form 4797, line 7
7.
8. Enter the amount, if any, from Form 4797, line 8
8.
9. Subtract line 8 from line 7. If zero or less, enter -0-
9.
10. Do you have any gain from the sale or exchange of an interest in a partnership attributable to unrecaptured
section 1250 gain?
No. Leave line 10 blank. Go to line 11.
Yes. Enter the total amount of that unrecaptured section 1250 gain (see instructions)
10.
11. Was any amount reported to you on a Schedule K-1, Form 1099-DIV, or Form 2439 as "unrecaptured
section 1250 gain" from an estate, trust, real estate investment trust, or mutual fund (or other regulated
investment company)?
No. Leave line 11 blank. Go to line 12.
Yes. Enter the total amount of that unrecaptured section 1250 gain
11.
12. Do you have any unrecaptured section 1250 gain from sales (including installment sales) or other
dispositions of section 1250 property held more than 1 year for which you did not make an entry in
Part I of Form 4797 for the year of sale (see instructions)?
No. Leave line 12 blank. Go to line 13.
Yes. Enter the total amount of that unrecaptured section 1250 gain
12.
13. Add lines 9 through 12
13.
14. Enter the gain or (loss) from Schedule D, line 15
14.
15. Enter the (loss), if any, from Schedule D, line 7. If Schedule D, line 7, is zero
or a gain, enter -0-
15.
16. Combine lines 14 and 15. If the result is zero or a gain, enter -0-. If the result is a (loss), enter it as a
positive amount
16.
17. Subtract line 16 from line 13. If zero or less, enter -0-. Enter the result here and on Schedule D,
line 25
17.
D-8

2000
Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties,
partnerships, S corporations, estates, trusts, and residual interests in REMICs.
Instructions for
You may attach your own schedule(s) to report income or loss from any of these sources.
Use the same format as on Schedule E.
Schedule E,
Enter separately on Schedule E the total income and the total loss for each part. Enclose
loss figures in (parentheses).
Supplemental
Income and Loss
fering it for rent, if you rented or tried to
Part I
Filers of Form 1041
rent it for at least 12 consecutive months (or
for a period of less than 12 consecutive
If you are a fiduciary filing Schedule E with
months at the end of which you sold or
Income or Loss From Rental
Form 1041, enter the estate's or trust's em-
exchanged it).
Real Estate and Royalties
ployer identification number (EIN) in the
space for "Your social security number."
Check "Yes" if you or your family used
Use Part I to report:
the unit for personal purposes in 2000 more

than the greater of:
Income and expenses from rentals of
real estate (including personal property
Line 1
1. 14 days or
leased with real estate) and
2. 10% of the total days it was rented to
Royalty income and expenses.
For rental real estate property only, show:
others at a fair rental price.

See the instructions for lines 3 and 4 to
The kind of property you rented (for
Otherwise, check "No."
determine if you should report your rental
example, townhouse).
If you checked "No," you can deduct all
real estate and royalty income on Schedule
The street address, city or town, and your expenses for the rental part, subject to
C, Schedule C-EZ, or Form 4835 instead
state. You do not have to give the ZIP code.
the At-Risk Rules and the Passive Activity
of Schedule E.
Your percentage of ownership in the Loss Rules explained on pages E-3 and E-4.
If you own a part interest in a rental real
property, if less than 100%.
If you checked "Yes" and rented the unit
estate property, report only your part of the
out for fewer than 15 days, do not report the
income and expenses on Schedule E.
rental income and do not deduct any rental
If you have more than three rental real
Line 2
expenses. If you itemize deductions on
estate or royalty properties, complete and
Schedule A, you may deduct allowable in-
If you rented out a dwelling unit that you
attach as many Schedules E as you need to
terest, taxes, and casualty losses.
also used for personal purposes during the
list them. Complete lines 1 and 2 for each
If you checked "Yes" and rented the unit
year, you may not be able to deduct all the
rental real estate property. Leave these lines
out for at least 15 days, you may not be able
expenses for the rental part. "Dwelling unit"
blank for each royalty property. But fill in
to deduct all your rental expenses. You can
(unit) means a house, apartment, condomin-
the "Totals" column on only one Schedule
deduct all of the following expenses for the
ium, or similar property.
E. The figures in the "Totals" column on
rental part on Schedule E.
that Schedule E should be the combined
A day of personal use is any day, or part
Mortgage interest.
totals of all your Schedules E.
of a day, that the unit was used by:
Real estate taxes.
If you are also using page 2 of Schedule
You for personal purposes;
Casualty losses.
E, use the same Schedule E on which you
Any other person for personal pur-
entered the combined totals for Part I.
poses, if that person owns part of the unit
Other rental expenses not related to
(unless rented to that person under a "shared
your use of the unit as a home, such as
Personal Property. Do not use Schedule E
equity" financing agreement);
advertising expenses and rental agents' fees.
to report income and expenses from the
Anyone in your family (or in the family
If any income is left after deducting these
rental of personal property, such as equip-
of someone else who owns part of the unit),
expenses, you can deduct other expenses,
ment or vehicles. Instead, use Schedule C
unless the unit is rented at a fair rental price
including depreciation, up to the amount of
or C-EZ if you are in the business of renting
to that person as his or her main home;
remaining income. You can carry over to
personal property. You are in the business

2001 the amounts you cannot deduct.
of renting personal property if the primary
Anyone who pays less than a fair rental
See Pub. 527 for details.
purpose for renting the property is income
price for the unit; or
or profit and you are involved in the rental
Anyone under an agreement that lets
activity with continuity and regularity.
you use some other unit.
Line 3
If your rental of personal property is not
Do not count as personal use:
a business, see the Instructions for Form
If you received rental income from real
1040, lines 21 and 32, to find out how to
Any day you spent working substan- estate (including personal property leased
report the income and expenses.
tially full time repairing and maintaining the
with real estate) and you were not in the real
unit, even if family members used it for
estate business, report the income on line 3.
recreational purposes on that day; or
Include income received for renting a room
Any days you used the unit as your or other space. If you received services or
main home before or after renting it or of-
E-1
Cat. No. 24332T

property instead of money as rent, report the
If you deduct actual auto expenses:
fair market value as rental income.
General Instructions for
Include on line 6 the rental activity por-
Be sure to enter the total of all your rents
Lines 5 Through 21
tion of the cost of gasoline, oil, repairs, in-
in the "Totals" column even if you have only
surance, tires, etc. and
one property.
Enter your rental and royalty expenses for
Show auto rental or lease payments on
each property in the appropriate column.
If you provided significant services to the
line 18 and depreciation on line 20.
You can deduct all ordinary and necessary
renter, such as maid service, report the rental
expenses, such as taxes, interest, repairs, in-
If you take the standard mileage rate, mul-
activity on Schedule C or C-EZ, not on
surance, management fees, agents' commis-
tiply the number of miles you drove your
Schedule E. Significant services do not in-
sions, and depreciation.
auto in connection with your rental activities
clude the furnishing of heat and light, clean-
by 32.5 cents. Include this amount and your
ing of public areas, trash collection, or
Do not deduct the value of your own labor
parking fees and tolls on line 6.
similar services.
or amounts paid for capital investments or
capital improvements.
If you claim any auto expenses (actual or
If you were in the real estate sales busi-
the standard mileage rate), you must com-
ness, include on line 3 only the rent received
Enter your total expenses for mortgage
plete Part V of Form 4562 and attach Form
from real estate (including personal property
interest (line 12), total expenses before de-
4562 to your return.
leased with real estate) you held for invest-
preciation expense or depletion (line 19),
See Pub. 527 and Pub. 463 for details.
ment or speculation. Do not use Schedule E
and depreciation expenses or depletion (line
to report income and expenses from rentals
20) in the "Totals" column even if you have
of real estate held for sale to customers in
only one property.
the ordinary course of your real estate sales
Line 10
business. Instead, use Schedule C or C-EZ
Renting Out Part of Your Home. If you
Include on line 10 fees for tax advice and
for these rentals.
rent out only part of your home or other
property, deduct the part of your expenses
the preparation of tax forms related to your
For more details on rental income, use
that applies to the rented part.
rental real estate or royalty properties.
TeleTax topic 414 (see page 11 of the Form
Do not deduct legal fees paid or incurred
1040 instructions) or see Pub. 527.
Credit or Deduction for Access Expendi-
to defend or protect title to property, to re-
tures. You may be able to claim a tax credit
cover property, or to develop or improve
Rental Income From Farm Production or
for eligible expenditures paid or incurred in
property. Instead, you must capitalize these
Crop Shares. Report farm rental income
2000 to provide access to your business for
fees and add them to the property's basis.
and expenses on Form 4835 if:
individuals with disabilities. See Form 8826
You received rental income based on for details.
crops or livestock produced by the tenant
You can also deduct up to $15,000 of
Lines 12 and 13
and
qualified costs paid or incurred in 2000 to
You did not manage or operate the farm remove architectural or transportation barri- In general, to determine the interest expense
to any great extent.
ers to individuals with disabilities and the
allocable to your rental activities, you must
elderly.
have records to show how the proceeds of
each debt were used. Specific tracing rules
You cannot take both the credit and the
Line 4
apply for allocating debt proceeds and re-
deduction for the same expenditures. See
payment. See Pub. 535 for details.
Pub. 535 for details.
Report on line 4 royalties from oil, gas, or
If you have a mortgage on your rental
mineral properties (not including operating
property, enter on line 12 the amount of
interests); copyrights; and patents. Use a
interest you paid for 2000 to banks or other
separate column (A, B, or C) for each roy-
Line 6
financial institutions. Be sure to fill in the
alty property. Be sure to enter the total of
You may deduct ordinary and necessary
"Totals" column.
all your royalties in the "Totals" column
auto and travel expenses related to your
Do not deduct prepaid interest when you
even if you have only one source of royal-
rental activities, including 50% of meal ex-
paid it. You can deduct it only in the year
ties.
penses incurred while traveling away from
to which it is properly allocable. Points, in-
If you received $10 or more in royalties
home. You generally can either deduct your
cluding loan origination fees, charged only
during 2000, the payer should send you a
actual expenses or take the standard mileage
for the use of money must be deducted over
Form 1099-MISC or similar statement by
rate. You must use actual expenses if you
the life of the loan.
January 31, 2001, showing the amount you
use more than one vehicle simultaneously
If you paid $600 or more in interest on a
received.
in your rental activities (as in fleet opera-
mortgage during 2000, the recipient should
If you are in business as a self-employed
tions). You cannot use actual expenses for
send you a Form 1098 or similar statement
writer, inventor, artist, etc., report your roy-
a leased vehicle if you previously used the
by January 31, 2001, showing the total in-
alty income and expenses on Schedule C or
standard mileage rate for that vehicle.
terest received from you.
C-EZ.
You can use the standard mileage rate for
If you paid more mortgage interest than
You may be able to treat amounts re-
2000 only if:
is shown on your Form 1098 or similar state-
ceived as "royalties" for the transfer of a
You owned the vehicle and use the ment, see Pub. 535 to find out if you can
patent or amounts received on the disposal
standard mileage rate for the first year you
deduct the additional interest. If you can,
of coal and iron ore as the sale of a capital
placed the vehicle in service or
enter the entire amount on line 12. Attach a
asset. For details, see Pub. 544.
You leased the vehicle and are using statement to your return explaining the dif-
Enter on line 4 the gross amount of roy-
the standard mileage rate for the entire lease
ference. Write "See attached" in the left
alty income, even if state or local taxes were
period (except the period, if any, before
margin next to line 12.
withheld from oil or gas payments you re-
1998).
ceived. Include taxes withheld by the pro-
Note. If the recipient was not a financial
ducer on line 16.
institution or you did not receive a Form
E-2

1098 from the recipient, report your deduct-
A section 179 expense deduction or nancing for which no one is personally liable
ible mortgage interest on line 13.
amortization of costs that began in 2000.
for repayment and is:
If you and at least one other person (other
See Pub. 527 for more information on
Borrowed by you in connection with
than your spouse if you file a joint return)
depreciation of residential rental property.
holding real property,
were liable for and paid interest on the mort-
See Pub. 946 for a more comprehensive
Not convertible from a debt obligation
gage, and the other person received Form
guide to depreciation.
to an ownership interest, and
1098, report your share of the interest on
If you own mineral property or an oil, gas,
Loaned or guaranteed by any Federal,
line 13. Attach a statement to your return
or geothermal well, you may be able to take
state, or local government, or borrowed by
showing the name and address of the person
a deduction for depletion. See Pub. 535 for
you from a qualified person.
who received Form 1098. In the left margin
details.
next to line 13, write "See attached."
A qualified person is a person who ac-
tively and regularly engages in the business
of lending money, such as a bank or savings
Line 22
Line 14
and loan association. A qualified person
cannot be:
You may deduct the cost of repairs made to
At-Risk Rules
Related to you (unless the nonrecourse
keep your property in good working condi-
Generally, you must complete Form 6198
financing obtained is commercially reason-
tion. Repairs generally do not add signifi-
to figure your allowable loss if you have:
able and on the same terms as loans involv-
cant value to the property or extend its life.

ing unrelated persons),
A loss from an activity carried on as a
Examples of repairs are fixing a broken lock
trade or business or for the production of
The seller of the property (or a person
or painting a room. Improvements that in-
income and
related to the seller), or
crease the value of the property or extend
A person who receives a fee due to your
its life, such as replacing a roof or renovat-
Amounts in the activity for which you investment in real property (or a person re-
ing a kitchen, must be capitalized and de-
are not at risk.
lated to that person).
preciated (that is, they cannot be deducted
The at-risk rules generally limit the
in full in the year they are paid or incurred).
amount of loss (including loss on the dispo-
If you have amounts for which you are
See the instructions for line 20.
sition of assets) you can claim to the amount
not at risk, use Form 6198 to determine the
you could actually lose in the activity. How-
amount of your deductible loss. Enter that
ever, the at-risk rules do not apply to losses
amount in the appropriate column of Sched-
Line 17
from an activity of holding real property, if
ule E, line 22. In the space to the left of line
you acquired your interest in the activity
22, write "Form 6198." Attach Form 6198
You may deduct the cost of ordinary and
before 1987 and the property was placed in
to your return.
necessary telephone calls related to your
service before 1987. The activity of holding
rental activities or royalty income (for ex-
mineral property does not qualify for this
ample, calls to the renter). However, the
exception.
Line 23
base rate (including taxes and other charges)
In most cases, you are not at risk for
for local telephone service for the first tele-
Note. Do not complete line 23 if the amount
amounts such as the following.
phone line into your residence is a personal
on line 22 is from royalty properties.
Nonrecourse loans used to finance the
expense and is not deductible.
activity, to acquire property used in the ac-
If you have a rental real estate loss from
tivity, or to acquire your interest in the ac-
a passive activity (defined on page E-4), the
tivity that are not secured by your own
Line 20
amount of loss you can deduct may be lim-
property (other than property used in the
ited by the passive activity loss rules. You
Depreciation is the annual deduction you
activity). However, there is an exception for
may need to complete Form 8582 to figure
must take to recover the cost or other basis
certain nonrecourse financing borrowed by
the amount of loss, if any, to enter on line
of business or investment property having a
you in connection with holding real proper-
23.
useful life substantially beyond the tax year.
ty. See Qualified nonrecourse financing
If your rental real estate loss is not from
Land is not depreciable.
below.
a passive activity or you meet the following

Depreciation starts when you first use the
Cash, property, or borrowed amounts
exception, you do not have to complete
property in your business or for the produc-
used in the activity (or contributed to the
Form 8582. Enter the loss from line 22 on
tion of income. It ends when you deduct all
activity, or used to acquire your interest in
line 23.
your depreciable cost or other basis or no
the activity) that are protected against loss
longer use the property in your business or
by a guarantee, stop-loss agreement, or other
Exception for Certain Rental Real Estate
for the production of income.
similar arrangement (excluding casualty in-
Activities. If you meet all three of the fol-
surance and insurance against tort liability).
lowing conditions, your rental real estate
See the Instructions for Form 4562 to

losses are not limited by the passive activity
figure the amount of depreciation to enter
Amounts borrowed for use in the ac-
loss rules. If you do not meet all three of
on line 20. Be sure to fill in the "Totals"
tivity from a person who has an interest in
these conditions, see the Instructions for
column.
the activity (other than as a creditor) or who
is related, under Internal Revenue Code sec-
Form 8582 to find out if you must complete
You must complete and attach Form 4562
tion 465(b)(3), to a person (other than you)
and attach Form 8582.
only if you are claiming:
having such an interest.
1. Rental real estate activities are your
Depreciation on property first placed in
Qualified
nonrecourse
financing
is
only passive activities.
service during 2000;
treated as an amount at risk if it is secured
2. You do not have any prior year unal-
Depreciation on listed property (de- by real property used in an activity of hold- lowed losses from any passive activities.
fined in the Instructions for Form 4562),
ing real property that is subject to the at-risk
3. All of the following apply if you have
including a vehicle, regardless of the date it
rules. Qualified nonrecourse financing is fi-
an overall net loss from these activities:
was placed in service; or
E-3

You actively participated (defined
Losses from passive activities may be
If you are married filing jointly, either you
below) in all of the rental real estate activ-
subject first to the at-risk rules. Losses de-
or your spouse must separately meet both of
ities;
ductible under the at-risk rules are then sub-
the above conditions, without taking into
If married filing separately, you lived ject to the passive activity loss rules.
account services performed by the other
apart from your spouse all year;
You generally can deduct losses from pas-
spouse.
Your overall net loss from these activ- sive activities only to the extent of income
A real property trade or business is any
ities is $25,000 or less ($12,500 or less if
from passive activities. An exception applies
real property development, redevelopment,
married filing separately);
to certain rental real estate activities (as pre-
construction,
reconstruction,
acquisition,

viously explained).
conversion, rental, operation, management,
You have no current or prior year un-
leasing, or brokerage trade or business.
allowed credits from passive activities; and
Passive Activity. A passive activity is any
Services you performed as an employee are
Your modified adjusted gross income business activity in which you do not ma- not treated as performed in a real property
(defined later) is $100,000 or less ($50,000
terially participate and any rental activity,
trade or business unless you owned more
or less if married filing separately).
except as provided on this page. If you are
than 5% of the stock (or more than 5% of
a limited partner, you generally are not treat-
the capital or profits interest) in the employ-
Active Participation. You can meet the
ed as having materially participated in the
er.
active participation requirement without
partnership's activities for the year.
regular, continuous, and substantial involve-
If you were a real estate professional for
The rental of real or personal property is
ment in real estate activities. But you must
2000, complete line 42 on page 2 of Sched-
generally a rental activity under the passive
have participated in making management
ule E.
activity loss rules, but exceptions apply. If
decisions or arranging for others to provide
your rental of property is not treated as a
Other Exceptions. The rental of your home
services (such as repairs) in a significant and
rental activity, you must determine whether
that you also used for personal purposes is
bona fide sense. Such management deci-
it is a trade or business activity, and if so,
not a passive activity. See the instructions
sions include:
whether you materially participated in the
for line 2.
Approving new tenants,
activity for the tax year.
A working interest in an oil or gas well
Deciding on rental terms,
See the Instructions for Form 8582 to de-
that you held directly or through an entity
Approving capital or repair expendi- termine whether you materially participated that did not limit your liability is not a pas-
tures, and
in the activity and for the definition of
sive activity even if you do not materially
Other similar decisions.
"rental activity."
participate.
You are not considered to actively partic-
See Pub. 925 for special rules that apply
Royalty income not derived in the ordi-
ipate if, at any time during the tax year, your
to rentals of:
nary course of a trade or business reported
interest (including your spouse's interest) in
Substantially nondepreciable property,
on Schedule E generally is not considered
the activity was less than 10% by value of

income from a passive activity.
Property incidental to development ac-
all interests in the activity.
tivities, and
For details on passive activities, see the

Instructions for Form 8582 and Pub. 925.
Modified Adjusted Gross Income. This is
Property to activities in which you ma-
your adjusted gross income from Form
terially participate.
1040, line 33, without taking into account:
Exception for Real Estate Professionals.
Any passive activity loss,
Parts II and III
If you were a real estate professional in
Rental real estate losses allowed under 2000, any rental real estate activity in which If you need more space in Part II or III to
the exception for real estate professionals
you materially participated is not a passive
list your income or losses, attach a contin-
(explained on this page),
activity. You were a real estate profession-
uation sheet using the same format as shown
Taxable social security or equivalent al only if you met both of the following in Part II or III. However, be sure to com-
railroad retirement benefits,
conditions.
plete the "Totals" columns for lines 28a and
Deductible contributions to a tradition-
1. More than half of the personal services
28b, or lines 33a and 33b, as appropriate. If
al IRA or certain other qualified retirement
you performed in trades or businesses were
you also completed Part I on more than one
plans under Internal Revenue Code section
performed in real property trades or busi-
Schedule E, use the same Schedule E on
219,
nesses in which you materially participated.
which you entered the combined totals in

Part I.
The student loan interest deduction,
2. You performed more than 750 hours

of services in real property trades or busi-
The deduction for one-half of self-
Tax Shelter Registration Number. Com-
nesses in which you materially participated.
employment tax, and
plete and attach Form 8271 if you are re-

For purposes of this rule, each interest in
The exclusion of amounts received
porting any deduction, loss, credit, other tax
rental real estate is a separate activity, unless
under an employer's adoption assistance
benefit, or income from an interest pur-
you elect to treat all your interests in rental
program.
chased or otherwise acquired in a tax shelter.
real estate as one activity. To make this
However, if you file Form 8815, include
Form 8271 is used to report the name, tax
election, attach a statement to your original
in your modified adjusted gross income the
shelter registration number, and identifying
tax return that declares you are a qualifying
savings bond interest excluded on line 14 of
number of the tax shelter. There is a $250
taxpayer for the year and you are making
that form.
penalty if you do not report the registration
the election under Internal Revenue Code
number of the tax shelter on your tax return.
section 469(c)(7)(A). The election applies
Passive Activity Loss Rules
for the year made and all later years in which
Tax Preference Items. If you are a partner,
The passive activity loss rules may limit the
you are a real estate professional. You may
a shareholder in an S corporation, or a ben-
amount of losses you can deduct. These
revoke the election only if your facts and
eficiary of an estate or trust, you must take
rules apply to losses in Parts I, II, and III,
circumstances materially change.
into account your share of preferences and
and line 39 of Schedule E.
adjustments from these entities for the alter-
E-4

native minimum tax on Form 6251 or
complete Form 8582. Instead, enter your al-
while U.S. persons controlled that partner-
Schedule I of Form 1041.
lowable loss in Part II, column (g).
ship.
If you have passive activity income, com-
You had an acquisition, disposition, or
plete Part II, column (h), for that activity.
change in proportional interest of a foreign
Part II
If you have nonpassive income or losses,
partnership that:
complete Part II, columns (i) through (k), as
1. Increased your direct interest to at least
appropriate.
10% or reduced your direct interest of at
Income or Loss From
least 10% to less than 10% or
Partnerships and
Partnerships
2. Changed your direct interest by at least
S Corporations
See the Schedule K-1 instructions before
a 10% interest.
If you are a member of a partnership or joint
entering on your return other partnership
You contributed property to a foreign
venture or a shareholder in an S corporation,
items from a passive activity or income or
partnership in exchange for a partnership
use Part II to report your share of the part-
loss from any publicly traded partnership.
interest if:
nership or S corporation income (even if not
If you have other partnership items, such
1. Immediately after the contribution, you
received) or loss.
as depletion, from a nonpassive activity,
owned, directly or indirectly, at least a 10%
You should receive a Schedule K-1 from
show each item on a separate line in Part II.
interest in the partnership or
the partnership or S corporation. You should
You may deduct unreimbursed ordinary and
2. The fair market value of the property
also receive a copy of the Partner's or Share-
necessary expenses you paid on behalf of
you contributed to the partnership in ex-
holder's Instructions for Schedule K-1. Your
the partnership if you were required to pay
change for a partnership interest, when
copy of Schedule K-1 and its instructions
these expenses under the partnership agree-
added to other contributions of property you
will tell you where on your return to report
ment. Enter deductible unreimbursed part-
made to the partnership during the preceding
your share of the items. If you did not re-
nership
expenses
from
nonpassive
12-month period, exceeds $100,000.
ceive these instructions with your Schedule
activities on a separate line in Part II,
Also, you may have to file Form 8865 to
K-1, see page 7 of the Form 1040 instruc-
column (i). However, enter on Schedule A
report certain dispositions by a foreign part-
tions for how to get a copy. Do not attach
any unreimbursed partnership expenses de-
nership of property you previously contrib-
Schedules K-1 to your return. Keep them
ductible as itemized deductions.
uted to that partnership if you were a partner
for your records.
Report allowable interest expense paid or
at the time of the disposition.
If you are treating items on your tax return
incurred from debt-financed acquisitions in
For more details, including penalties for
differently from the way the partnership
Part II or on Schedule A depending on the
failing to file Form 8865, see Form 8865
(other than an electing large partnership) or
type of expenditure to which the interest is
and its separate instructions.
S corporation reported them on its return,
allocated. See Pub. 535 for details.
you may have to file Form 8082. If you are
If you claimed a credit for Federal tax on
S Corporations
a partner in an electing large partnership,
gasoline or other fuels on your 1999 Form
you must report the items shown on Sched-
1040 based on information received from
If you are a shareholder in an S corporation,
ule K-1 (Form 1065-B) on your tax return
the partnership, enter as income in column
your share of the corporation's aggregate
the same way that the partnership reported
(h) or column (k), whichever applies, the
losses and deductions (combined income,
the items on Schedule K-1.
amount of the credit claimed for 1999.
losses, and deductions) is limited to the ad-
justed basis of your corporate stock and any
If you have losses or deductions from a
Special Rules That Limit Losses. Please
debt the corporation owes you. Any loss or
prior year that you could not deduct because
note the following.
deduction not allowed this year because of
of the at-risk or basis rules, and the amounts
If you have a current year loss, or a
the basis limitation may be carried forward
are now deductible, do not combine the prior
prior year unallowed loss, from a partner-
and deducted in a later year subject to the
year amounts with any current year amounts
ship or an S corporation, see At-Risk Rules
basis limitation for that year.
to arrive at a net figure to report on Schedule
and Passive Activity Loss Rules on pages
E. Instead, report the prior year amounts and
If you are claiming a deduction for your
E-3 and E-4.
the current year amounts on separate lines
share of an aggregate loss, attach to your
Partners and S corporation shareholders
of Schedule E.
return a computation of the adjusted basis
should get a separate statement of income,
of your corporate stock and of any debt the
Part or all of your share of partnership
expenses, deductions, and credits for each
corporation owes you. See the Schedule K-1
income or loss from the operation of the
activity engaged in by the partnership and
instructions for details.
business may be considered net earnings
S corporation. If you are subject to the at-
from self-employment that must be reported
After applying the basis limitation, the
risk rules for any activity, use Form 6198
on Schedule SE. Enter the amount from
deductible amount of your aggregate losses
to figure the amount of any deductible loss.
Schedule K-1 (Form 1065), line 15a (or
and deductions may be further reduced by
If the activity is nonpassive, enter any de-
from Schedule K-1 (Form 1065-B), box 9
the at-risk rules and the passive activity loss
ductible loss from Form 6198 on the appro-
(code K-1)), on Schedule SE, after you
rules explained earlier.
priate line in Part II, column (i), of Schedule
reduce this amount by any allowable ex-
If you have losses or deductions from a
E.
penses attributable to that income.
prior year that you could not deduct because
If you have a passive activity loss, you
of the basis or at-risk limitations, and the
generally need to complete Form 8582 to
Foreign Partnerships. If you are a U.S.
amounts are now deductible, do not com-
figure the amount of the allowable loss to
person, you may have to file Form 8865 if
bine the prior year amounts with any current
enter in Part II, column (g), for that activity.
any of the following applies:
year amounts to arrive at a net figure to
But if you are a general partner or an S
You controlled a foreign partnership report on Schedule E. Instead, report the
corporation shareholder reporting your share
(that is, you owned more than a 50% direct
prior year amounts and the current year
of a partnership or an S corporation loss
or indirect interest in the partnership).
amounts on separate lines of Schedule E.
from a rental real estate activity and you
You owned at least a 10% direct or
Distributions of prior year accumulated
meet all three of the conditions listed in the
indirect interest in a foreign partnership
earnings and profits of S corporations are
instructions for line 23, you do not have to
E-5

dividends and are reported on Form 1040,
If you are the holder of a residual interest
2. You file your 2000 tax return and pay
line 9.
in more than one REMIC, attach a contin-
the tax due by March 1, 2001.
Interest expense relating to the acquisition
uation sheet using the same format as in Part
of shares in an S corporation may be fully
IV. Enter the totals of columns (d) and (e)
deductible on Schedule E. For details, see
on line 38 of Schedule E. If you also com-
Pub. 535.
pleted Part I on more than one Schedule E,
use the same Schedule E on which you en-
Your share of the net income of an S
tered the combined totals in Part I.
corporation
is
not
subject
to
self-
employment tax.
REMIC income or loss is not income or
loss from a passive activity.
Part III
Note. If you are the holder of a regular
interest in a REMIC, do not use Schedule
E to report the income you received. Instead,
Income or Loss From
report it on Form 1040, line 8a.
Estates and Trusts
If you are a beneficiary of an estate or trust,
Column (c). Report the total of the amounts
use Part III to report your part of the income
shown on Schedule(s) Q, line 2c. This is the
(even if not received) or loss. You should
smallest amount you are allowed to report
receive a Schedule K-1 (Form 1041) from
as your taxable income (Form 1040, line
the fiduciary. Your copy of Schedule K-1
39). It is also the smallest amount you are
and its instructions will tell you where on
allowed to report as your alternative mini-
your return to report the items from Sched-
mum taxable income (AMTI) (Form 6251,
ule K-1. Do not attach Schedule K-1 to your
line 21).
return. Keep it for your records.
If the amount in column (c) is larger than
If you are treating items on your tax return
your taxable income would otherwise be,
differently from the way the estate or trust
enter the amount from column (c) on Form
reported them on its return, you may have
1040, line 39. Similarly, if the amount in
to file Form 8082.
column (c) is larger than your AMTI would
If you have estimated taxes credited to
otherwise be, enter the amount from column
you from a trust (Schedule K-1, line 14a),
(c) on Form 6251, line 21. Write "Sch. Q"
write "ES payment claimed" and the amount
on the dotted line to the left of this amount
on the dotted line next to line 36. Do not
on Form 1040 or 6251.
include this amount in the total on line 36.
Instead, enter the amount on Form 1040, line
Note. These rules also apply to estates and
59.
trusts that hold a residual interest in a
A U.S. person who transferred property
REMIC. Be sure to make the appropriate
to a foreign trust may have to report the
entries on the comparable lines on Form
income received by the trust as a result of
1041.
the transferred property if, during 2000, the
trust had a U.S. beneficiary. For details, see
Do not include the amount
Form 3520.
shown in column (c) in the total
on line 38 of Schedule E.
Part IV
Column (e). Report the total of the amounts
shown on Schedule(s) Q, line 3b. If you
Income or Loss From Real
itemize your deductions on Schedule A, in-
Estate Mortgage Investment
clude this amount on line 22.
Conduits (REMICs)
If you are the holder of a residual interest
in a real estate mortgage investment conduit
Part V
(REMIC), use Part IV to report your total
share of the REMIC's taxable income or loss
Summary
for each quarter included in your tax year.
You should receive Schedule Q (Form
1066) and instructions from the REMIC for
Line 41
each quarter. Do not attach Schedules Q to
your return. Keep them for your records.
You will not be charged a penalty for un-
If you are treating REMIC items on your
derpayment of estimated tax if:
tax return differently from the way the
1. Your gross farming or fishing income
REMIC reported them on its return, you
for 1999 or 2000 is at least two-thirds of
may have to file Form 8082.
your gross income and
E-6

2000
Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040,
1041, 1065, or 1065-B.
Instructions for
This activity may subject you to state and local taxes and other requirements such as
business licenses and fees. Check with your state and local governments for more infor-
Schedule F,
mation.
Additional Information. Pub. 225 has samples of filled-in forms and schedules, and lists
Profit or Loss
important dates that apply to farmers.
From Farming
Heavy Highway Vehicle Use
General Instructions
Tax
Lines A and B
If you use certain highway trucks, truck-
On line A, enter your principal crop or ac-
Other Schedules and Forms
trailers, tractor-trailers, or buses in your
tivity for the current year.
You May Have To File
trade or business, you may have to pay a
On line B, enter one of the 14 principal
Federal highway motor vehicle use tax. See
agricultural activity codes listed in Part IV
Schedule E to report rental income from
Form 2290 to find out if you owe this tax.
on page 2 of Schedule F. Select the code
pastureland that is based on a flat charge.
that best describes the source of most of your
Report this income in Part I of Schedule E.
Information Returns
income.
But report on line 10 of Schedule F pasture
income received from taking care of some-
You may have to file information returns for
one else's livestock.
wages paid to employees, certain payments
of fees and other nonemployee compensa-
Line C
Schedule J to figure your tax by averaging
tion, interest, rents, royalties, annuities, and
Under the cash method, include all income
your farm income over the previous 3 years.
pensions. You may also have to file an in-
in the year you actually get it. Generally,
Doing so may reduce your tax.
formation return if you sold $5,000 or more
deduct expenses when you pay them. If you
of consumer products to a person on a buy-
use the cash method, check the box labeled
Schedule SE to pay self-employment tax on
sell, deposit-commission, or other similar
"Cash." Complete Parts I and II of Schedule
income from any trade or business, includ-
basis for resale. For more information, see
F.
ing farming.
the 2000 General Instructions for Forms
Under the accrual method, include
1099, 1098, 5498, and W-2G.
Form 4562 to claim depreciation on assets
income in the year you earn it. It does not
If you received cash of more than $10,000
placed in service in 2000, to claim amorti-
matter when you get it. Deduct expenses
in one or more related transactions in your
zation that began in 2000, or to report in-
when you incur them. If you use the accrual
farming business, you may have to file
formation on vehicles and other listed
method, check the box labeled "Accrual."
Form 8300. For details, see Pub. 1544.
property.
Complete Parts II, III, and line 11 of Sched-
ule F.
Form 4684 to report a casualty or theft gain
Estimated Tax
Other rules apply that determine the
or loss involving farm business property in-
If you had to make estimated tax payments
timing of deductions based on economic
cluding livestock held for draft, breeding,
in 2000 and you underpaid your estimated
performance. See Pub. 538 for details.
sport, or dairy purposes.
tax, you will not be charged a penalty if
Farming syndicates cannot use the cash
See Pub. 225 for more information on
both of the following apply.
method of accounting. A farming syndicate
how to report various farm losses, such as
1. Your gross farming or fishing income
may be a partnership, any other noncorpor-
losses due to death of livestock or damage
for 1999 or 2000 is at least two-thirds of
ate group, or an S corporation if:
to crops or other farm property.
your gross income.
1. The interests in the business have ever
2. You file your 2000 tax return and pay
been for sale in a way that would require
Form 4797 to report sales, exchanges, or
the tax due by March 1, 2001.
registration with any Federal or state agency
involuntary conversions (other than from a
or
casualty or theft) of certain farm property.
For details, see Pub. 225.
Also, use this form to report sales of live-
2. More than 35% of the loss during any
stock held for draft, breeding, sport, or dairy
tax year is shared by limited partners or
purposes.
limited entrepreneurs. A limited partner is
Specific Instructions one who can lose only the amount invested
Form 4835 to report rental income based
or required to be invested in the partnership.
on farm production or crop shares if you did
A limited entrepreneur is a person who
not
materially
participate
(for
self-
Filers of Forms 1041,
does not take any active part in managing
employment tax purposes) in the manage-
the business.
1065, and 1065-B
ment or operation of the farm. This income
is not subject to self-employment tax. See
Do not complete the block labeled "Social
Pub. 225.
security number (SSN)." Instead, enter your
employer identification number (EIN) on
Form 8824 to report like-kind exchanges.
line D.
F-1
Cat. No. 24333E

and Reform Act of 1996 are required to be
Line D
included in income only in the year of actual
Lines 1 and 2
receipt.
You
need
an
employer
identification
On line 1, show amounts received from sales
number (EIN) only if you had a qualified
If you ran the farm yourself and received
of livestock and other items bought for
retirement plan or were required to file an
rents based on crop shares or farm produc-
resale. On line 2, show the cost or other
employment, excise, estate, trust, partner-
tion, report these rents as income on line 4.
basis of the livestock and other items you
ship, or alcohol, tobacco, and firearms tax
actually sold.
return. If you need an EIN, file Form SS-4.
If you do not have an EIN, leave line D
Sales of Livestock
blank. Do not enter your SSN.
Because of Weather-
Line 4
Related Conditions
Show amounts received from sales of live-
Line E
If you sold livestock because of drought,
stock, produce, grains, and other products
flood, or other weather-related conditions,
you raised.
Material Participation. For the definition
you can elect to report the income from the
of material participation for purposes of the
sale in the year after the year of sale if all
passive activity rules, see the instructions
of the following apply.
Lines 5a and 5b
for Schedule C, line G, on page C-2. If you

meet any of the material participation tests
Your main business is farming.
If you received distributions from a cooper-
described in those instructions, check the
You can show that you sold the live- ative in 2000, you should receive Form
"Yes" box.
stock only because of weather-related con-
1099-PATR. On line 5a, show your total
If you are a retired or disabled farmer,
ditions.
distributions from cooperatives. This in-
you are treated as materially participating in
Your area qualified for Federal aid.
cludes patronage dividends, nonpatronage
a farming business if you materially partic-
distributions, per-unit retain allocations, and
ipated 5 of the 8 years preceding your re-
redemption of nonqualified notices and per-
tirement or disability. Also, a surviving
Forms 1099 or
unit retain allocations.
spouse is treated as materially participating
CCC-1099-G
Show patronage dividends (distributions)
in a farming activity if the real property used
received in cash, and the dollar amount of
for farming meets the estate tax rules for
If you received Forms 1099 or CCC-1099-G
qualified written notices of allocation. If you
special valuation of farm property passed
showing amounts paid to you, first deter-
received property as patronage dividends,
from a qualifying decedent, and the surviv-
mine if the amounts are to be included with
report the fair market value of the property
ing spouse actively manages the farm.
farm income. Then, use the following chart
as income. Include cash advances received
Check the "No" box if you did not ma-
to determine where to report the income on
from a marketing cooperative. If you re-
terially participate. If you checked "No" and
Schedule F. Include the Form 1099 or
ceived per-unit retains in cash, show the
you have a loss from this business, see Limit
CCC-1099-G
amounts
with
any
other
amount of cash. If you received qualified
on Losses below. If you have a profit from
income reported on that line.
per-unit retain certificates, show the stated
this business activity but have current year
dollar amount of the certificate.
losses from other passive activities or prior
Do not include as income on line 5b pa-
year unallowed passive activity losses, see
Information
Where to
tronage dividends from buying personal or
the instructions for Form 8582.
return
report
family items, capital assets, or depreciable
Form 1099-PATR
Line 5a
assets. Enter these amounts on line 5a only.
Limit on Losses. If you checked the "No"
If you do not report patronage dividends
box on line E and you have a loss from this
Form 1099-A
Line 7b
from these items as income, you must sub-
business, you may have to use Form 8582
Form 1099-MISC
tract the amount of the dividend from the
to figure your allowable loss, if any, to enter
(for crop insurance)
Line 8a
cost or other basis of these items.
on Schedule F, line 36. Generally, you can
Forms 1099-G or
deduct losses from passive activities only to
CCC-1099-G
the extent of income from passive activities.
(for disaster payments)
Line 8a
Lines 6a and 6b
For details, see Pub. 925.
Forms 1099-G or
Enter on line 6a the total of the following
CCC-1099-G
amounts.
(for other agricultural
Part I. Farm
Price support payments.
program payments)
Line 6a
Market gain from the repayment of a
Income--Cash
secured Commodity Credit Corporation
You may also receive Form 1099-MISC
Method
(CCC) loan for less than the original loan
for other types of income. In this case, report
amount.
it on whichever line best describes the
In Part I, show income received for items
income. For example, if you received a
Diversion payments.
listed on lines 1 through 10. Generally,
Form 1099-MISC for custom farming work,
Cost-share payments (sight drafts).
count both the cash actually or constructive-
include this amount on line 9, "Custom hire
Payments in the form of materials (such
ly received and the fair market value of
(machine work) income."
as fertilizer or lime) or services (such as
goods or other property received for these
grading or building dams).
items. Income is constructively received
when it is credited to your account or set
These amounts are government payments
aside for you to use. However, farm produc-
you received, usually reported to you on
tion flexibility contract payments received
Form 1099-G. You may also receive Form
under the Federal Agriculture Improvement
CCC-1099-G from the Department of Agri-
F-2

culture showing the amounts and types of
Enter on line 8a the total crop insurance
The gain or loss on the sale of com-
payments made to you.
proceeds you received in 2000, even if you
modity futures contracts if the contracts
On line 6b, report only the taxable
elect to include them in income for 2001.
were made to protect you from price
amount. For example, do not report the
Enter on line 8b the taxable amount of
changes. These are a form of business in-
market gain shown on Form CCC-1099-G
the proceeds you received in 2000. Do not
surance and are considered hedges. If you
on line 6b if you elected to report CCC loan
include proceeds you elect to include in
had a loss in a closed futures contract, en-
proceeds as income in the year received (see
income for 2001.
close it in parentheses.
Lines 7a Through 7c below). No gain re-
Enter on line 8d the amount, if any, of
sults from redemption of the commodity be-
crop insurance proceeds you received in
For property acquired and hedg-
cause you previously reported the CCC loan
1999 and elected to include in income for
ing positions established, you
proceeds as income. You are treated as re-
2000.
must clearly identify on your
purchasing the commodity for the amount
books and records both the hedg-
of the loan repayment. However, if you did
ing transaction and the item(s) or aggregate
not report the CCC loan proceeds under the
Line 9
risk that is being hedged.
election, you must report the market gain on
line 6b.
Enter on this line the income you received
Purchase or sales contracts are not true
for custom hire (machine work).
hedges if they offset losses that already oc-
curred. If you bought or sold commodity
Lines 7a Through 7c
futures with the hope of making a profit due
Line 10
to favorable price changes, report the profit
Commodity Credit Corporation Loans.
or loss on Form 6781 instead of this line.
Generally, you do not report CCC loan pro-
Use this line to report income not shown on
ceeds as income. However, if you pledge
lines 1 through 9. For example, include the
part or all of your production to secure a
following income items on line 10.
CCC loan, you may elect to report the loan

Part II. Farm
Illegal Federal irrigation subsidies. See
proceeds as income in the year you receive
Pub. 225.
Expenses
them, instead of the year you sell the crop.
If you make this election (or made the elec-
Bartering income.
Do not deduct the following.
tion in a prior year), report loan proceeds
Income from discharge of indebted-
Personal or living expenses (such as
you received in 2000 on line 7a. Attach a
ness. Generally, if a debt is canceled or for-
taxes, insurance, or repairs on your home)
statement to your return showing the details
given, you must include the canceled
that do not produce farm income.
of the loan(s).
amount in income. If a Federal agency, fi-
nancial institution, or credit union canceled
Expenses of raising anything you or
Forfeited CCC Loans. Include the full
or forgave a debt you owed of $600 or more,
your family used.
amount forfeited on line 7b, even if you
it should send you a Form 1099-C, or sim-
The value of animals you raised that
reported the loan proceeds as income.
ilar statement, by January 31, 2001, showing
died.
If you did not elect to report the loan
the amount of debt canceled in 2000. How-
Inventory losses.
proceeds as income, also include the forfeit-
ever, certain solvent farmers may exclude
Personal losses.
ed amount on line 7c.
discharged qualified farm indebtedness from
income. For information on whether you
If you were repaid for any part of an
If you did elect to report the loan proceeds
must include any discharge of indebtedness
expense, you must subtract the amount you
as income, you generally will not have an
in income, see Pub. 225.
were repaid from the deduction.
entry on line 7c. But if the amount forfeited
is different from your basis in the commod-
State gasoline or fuel tax refund you Capitalizing Costs of Property. If you pro-
ity, you may have an entry on line 7c.
got in 2000.
duced real or tangible personal property or
See Pub. 225 for details on the tax con-
The amount of credit for Federal tax acquired property for resale, certain ex-
sequences of electing to report CCC loan
paid on fuels claimed on your 1999 Form
penses must be included in inventory costs
proceeds as income or forfeiting CCC loans.
1040.
or capitalized. These expenses include the
The amount of credit for alcohol used direct costs of the property and the share of
as a fuel that was entered on Form 6478.
any indirect costs allocable to that property.
Lines 8a Through 8d
Any recapture of excess depreciation, However, these rules generally do not apply
including any section 179 expense deduc-
to:
In general, you must report crop insurance
tion, if the business use percentage of any
1. Expenses of producing any plant that
proceeds in the year you receive them. Fed-
listed property decreased to 50% or less in
has a preproductive period of 2 years or less,
eral crop disaster payments are treated as
2000. Use Form 4797 to figure the recap-
2. Expenses of raising animals, or
crop insurance proceeds. However, if 2000
ture. See the instructions for Schedule C,
was the year of damage, you may elect to
3. Expenses of replanting certain crops if
line 13, on page C-3 for the definition of
include certain proceeds in income for 2001.
they were lost or damaged by reason of
listed property.
To make this election, check the box on line
freezing temperatures, disease, drought,
The inclusion amount on leased listed
8c and attach a statement to your return. See
pests, or casualty.
property (other than vehicles) when the busi-
Pub. 225 for a description of the proceeds
ness use percentage drops to 50% or less.
for which an election may be made and for
Note. Exceptions 1 and 2 above do not apply
See Pub. 946 to figure the amount.
what you must include in your statement.
to tax shelters, farm syndicates, or partner-
Any recapture of the deduction for
Generally, if you elect to defer any eligi-
ships required to use the accrual method of
clean-fuel vehicles used in your business
ble crop insurance proceeds, you must defer
accounting under Internal Revenue Code
and clean-fuel vehicle refueling property.
all such crop insurance proceeds (including
section 447 or 448.
For details on how to figure recapture, see
Federal disaster payments).
Pub. 535.
F-3

But you may be able to deduct rather than
plies not used or consumed during the year.
include (but are not limited to) the cost of
capitalize the expenses of producing a plant
They also include the cost of poultry that
leveling, grading and terracing, contour fur-
with a preproductive period of more than 2
would be allowable as a deduction in a later
rowing, the construction, control, and pro-
years. See Election To Deduct Certain
tax year if you were to (a) capitalize the cost
tection of diversion channels, drainage
Preproductive Period Expenses below.
of poultry bought for use in your farm busi-
ditches, earthen dams, watercourses, outlets
Do not reduce your deductions on lines
ness and deduct it ratably over the lesser of
and ponds, the eradication of brush, and the
12 through 34e by the preproductive period
12 months or the useful life of the poultry
planting of windbreaks.
expenses you are required to capitalize. In-
and (b) deduct the cost of poultry bought
These expenses can be deducted only if
stead, enter the total amount capitalized in
for resale in the year you sell or otherwise
they are consistent with a conservation plan
parentheses on line 34f. See Preproductive
dispose of it.
approved by the Natural Resources Conser-
Period Expenses on page F-6 for details.
If the limit applies, you can deduct pre-
vation Service (NRCS) of the Department
If you revoked an election made before
paid farm supplies that do not exceed 50%
of Agriculture for the area in which your
1989 to deduct preproductive period ex-
of your other deductible farm expenses in
land is located. If no plan exists, the ex-
penses for animals, you must continue to
the year of payment. You can deduct the
penses must be consistent with a plan of a
apply the alternative depreciation rules to
excess only in the year you use or consume
comparable state agency. You cannot deduct
property placed in service while your elec-
the supplies (other than poultry, which is
the expenses if they were paid or incurred
tion was in effect. Also, the expenses you
deductible as explained above). For details
for land used in farming in a foreign country.
previously chose to deduct will have to be
and exceptions to these rules, see Pub. 225.
Do not deduct expenses you pay or incur
recaptured as ordinary income when you
to drain or fill wetlands, to prepare land for
dispose of the animals.
center pivot irrigation systems, or to clear
Line 12
land.
Election To Deduct Certain Preproduc-
The amount you deduct may not exceed
tive Period Expenses. If the preproductive
You can deduct the actual expenses of run-
25% of your gross income from farming
period of any plant you produce is more than
ning your car or truck, or take the standard
(excluding certain gains from selling assets
2 years, you may choose to currently deduct
mileage rate. You must use actual expenses
such as farm machinery and land). If your
the expenses rather than capitalize them. But
if you used your vehicle for hire or you used
conservation expenses are more than the
you may not make this election for the costs
more than one vehicle simultaneously in
limit, the excess may be carried forward and
of planting or growing citrus or almond
your business (such as in fleet operations).
deducted in later tax years. However, the
groves that are incurred before the end of
You cannot use actual expenses for a leased
amount deductible for any 1 year may not
the 4th tax year beginning with the tax year
vehicle if you previously used the standard
exceed the 25% gross income limit for that
you planted them in their permanent grove.
mileage rate for that vehicle.
year.
By deducting the preproductive period ex-
You can take the standard mileage rate
For details, see Pub. 225.
penses for which you may make this elec-
for 2000 only if:
tion, you are treated as having made the
You owned the vehicle and use the
election.
standard mileage rate for the first year you
Line 15
placed the vehicle in service or
Note. In the case of a partnership or S cor-
You leased the vehicle and are using Enter amounts paid for custom hire or ma-
poration, the election must be made by the
the standard mileage rate for the entire lease
chine work (the machine operator furnished
partner or shareholder. This election may
period (except the period, if any, before
the equipment). Do not include amounts
not be made by tax shelters, farm syndicates,
1998).
paid for rental or lease of equipment that
or partners in partnerships required to use
If you deduct actual expenses:
you operated yourself. You should report
the accrual method of accounting under In-
those amounts on line 26a.
ternal Revenue Code section 447 or 448.
Include on line 12 the business portion
of expenses for gasoline, oil, repairs, insur-
If you make the election to deduct pre-
ance, tires, license plates, etc., and
Line 16
productive expenses for plants, any gain you
Show depreciation on line 16 and rent
realize when disposing of the plants is or-
or lease payments on line 26a.
You can deduct depreciation of buildings,
dinary income up to the amount of the pre-
If you take the standard mileage rate, mul-
improvements, cars and trucks, machinery,
productive expenses you deducted. Also, the
tiply the number of business miles by 32.5
and other farm equipment of a permanent
alternative depreciation rules apply to prop-
cents. Add to this amount your parking fees
nature.
erty placed in service in any tax year your
and tolls, and enter the total on line 12. Do
Do not deduct depreciation on your home,
election is in effect. Unless you obtain the
not deduct depreciation, rent or lease pay-
furniture or other personal items, land, live-
consent of the IRS, you must make this elec-
ments, or your actual operating expenses.
stock you bought or raised for resale, or
tion for the first tax year in which you
If you claim any car or truck expenses
other property in your inventory.
engage in a farming business involving the
(actual or the standard mileage rate), you
production of property subject to the capi-
You may also choose under Internal Rev-
must provide the information requested in
talization rules. You may not revoke this
enue Code section 179 to expense a portion
Part V of Form 4562. Be sure to attach
election without the consent of the IRS.
of the cost of certain tangible property you
Form 4562 to your return.
bought in 2000 for use in your business.
For details, see Pub. 225.
For details, see Pub. 463.
For details, including when you must
Prepaid Farm Supplies. Generally, if you
complete and attach Form 4562, see the in-
use the cash method of accounting and your
structions for Schedule C, line 13, on page
prepaid farm supplies are more than 50% of
Line 14
C-3.
your other deductible farm expenses, your
Deductible soil and water conservation ex-
deduction for those supplies may be limited.
penses generally are those that are paid to
Prepaid farm supplies include expenses for
conserve soil and water or to prevent erosion
feed, seed, fertilizer, and similar farm sup-
of land used for farming. These expenses
F-4

from that debt were used in your farming
employed person, see the instructions for
Line 17
business, see Pub. 535 to figure the amount
Schedule C, line 19, on page C-4.
that is deductible on Schedule F.
Deduct contributions to employee benefit
programs that are not an incidental part of
If you have a mortgage on real property
a pension or profit-sharing plan included on
used in your farming business (other than
Lines 26a and 26b
line 25. Examples are accident and health
your main home), enter on line 23a the in-
If you rented or leased vehicles, machinery,
plans, group-term life insurance, and depen-
terest you paid for 2000 to banks or other
or equipment, enter on line 26a the business
dent care assistance programs.
financial institutions for which you received
a Form 1098.
portion of your rental cost. But if you leased
Do not include on line 17 any contribu-
a vehicle for a term of 30 days or more, you
tions you made on your behalf as a self-
If you did not receive a Form 1098 from
may have to reduce your deduction by an
employed person to an accident and health
the recipient, report your mortgage interest
inclusion amount. For details, see the in-
plan or for group-term life insurance. You
on line 23b.
structions for Schedule C, lines 20a and 20b,
may be able to deduct on Form 1040, line
If you paid more mortgage interest than
on page C-4.
28, part of the amount you paid for health
is shown on Form 1098 or similar statement,
Enter on line 26b amounts paid to rent or
insurance on behalf of yourself, your spouse,
see Pub. 535 to find out if you can deduct
lease other property such as pasture or farm
and dependents even if you do not itemize
the additional interest. If you can, enter the
land.
your deductions. See the instructions for
amount on line 23a. Attach a statement to
Form 1040, line 28, for details.
your return explaining the difference and
write "See attached" in the left margin next
to line 23a.
Line 27
Line 18
If you and at least one other person (other
Enter amounts you paid for repairs and
than your spouse if you file a joint return)
maintenance of farm buildings, machinery,
Generally, you cannot currently deduct ex-
were liable for and paid interest on the mort-
and equipment. You can also include what
penses for feed to be consumed by your
gage and the other person received the Form
you paid for tools of short life or minimal
livestock in a later tax year. See Prepaid
1098, report your share of the interest on
cost, such as shovels and rakes.
Farm Supplies on page F-4.
line 23b. Attach a statement to your return
Do not deduct repairs or maintenance on
showing the name and address of the person
your home.
who received the Form 1098. In the left
Line 20
margin next to line 23b, write "See at-
tached."
Do not include the cost of transportation
Line 31
On line 23b, enter the interest on other
incurred in purchasing livestock held for
loans related to this farm. Do not deduct
Deduct the following taxes on this line.
resale as freight paid. Instead, add these
interest you prepaid in 2000 for later years;
costs to the cost of the livestock, and deduct
Real estate and personal property taxes
include only the part that applies to 2000.
them when the livestock is sold.
on farm business assets.
Social security and Medicare taxes you
paid to match what you are required to with-
Line 22
Line 24
hold from farm employees' wages and any
Enter the amounts you paid for farm labor.
Federal unemployment tax paid.
Deduct on this line premiums paid for farm
Do not include amounts paid to yourself.
Federal highway use tax.
business insurance. Deduct on line 17
Reduce your deduction by the current year
Do not deduct the following on this line.
amounts paid for employee accident and
credits claimed on:
health insurance. Amounts credited to a re-
Federal income taxes including your
serve for self-insurance or premiums paid
Form 5884, Work Opportunity Credit, self-employment tax. However, you may
for a policy that pays for your lost earnings
Form 8844, Empowerment Zone Em- deduct one-half of your self-employment tax
due to sickness or disability are not deduct-
ployment Credit,
on Form 1040, line 27.
ible.
Form 8845, Indian Employment
Estate and gift taxes.
Credit, and
Taxes assessed for improvements, such
Form 8861, Welfare-to-Work Credit.
as paving and sewers.
Lines 23a and 23b
Count the cost of boarding farm labor but
Taxes on your home or personal use
property.
Interest Allocation Rules. The tax treat-
not the value of any products they used from
ment of interest expense differs depending
the farm. Count only what you paid house-
State and local sales taxes on property
on its type. For example, home mortgage
hold help to care for farm laborers.
purchased for use in your farm business.
interest and investment interest are treated
If you provided taxable fringe
Instead, treat these taxes as part of the cost
differently. "Interest allocation" rules re-
benefits to your employees, such
of the property.
quire you to allocate (classify) your interest
as personal use of a car, do not
Other taxes not related to the farm busi-
expense so it is deducted on the correct line
include in farm labor the amounts
ness.
of your return and gets the right tax treat-
you depreciated or deducted elsewhere.
ment. These rules could affect how much
interest you are allowed to deduct on Sched-
Line 32
ule F.
Line 25
Generally, you allocate interest expense
Enter amounts you paid for gas, electricity,
by tracing how the proceeds of the loan are
Enter your deduction for contributions to
water, etc., for business use on the farm. Do
used. See Pub. 535 for details.
employee pension, profit-sharing, or annuity
not include personal utilities. You cannot
deduct the base rate (including taxes) of the
If you paid interest on a debt secured by
plans. If the plan included you as a self-
first telephone line into your residence, even
your main home and any of the proceeds
F-5

if you use it for business. See the instruc-
For details, see Capitalizing Costs of
figure your allowable loss to enter on line
tions for Schedule C, line 25, on page C-5.
Property on page F-3 and Pub. 225.
36. See the Instructions for Form 8582.
If you checked box 37b, get Form 6198
to determine the amount of your deductible
Lines 34a Through 34f
Line 36
loss and enter that amount on line 36. But
if you answered "No" to Question E, your
Include all ordinary and necessary farm ex-
If you have a loss, the amount of loss you
loss may be further limited. See the Instruc-
penses not deducted elsewhere on Schedule
can deduct this year may be limited. Go on
tions for Form 8582. If your at-risk amount
F, such as advertising, office supplies, etc.
to line 37 before entering your loss on line
is zero or less, enter zero on line 36. Be sure
Do not include fines or penalties paid to a
36. If you answered "No" to Question E on
to attach Form 6198 to your return. If you
government for violating any law.
Schedule F, also see the Instructions for
checked box 37b and you fail to attach Form
Form 8582. Enter the net profit or deduct-
6198, the processing of your tax return may
Amortization. You can amortize qualifying
ible loss here and on Form 1040, line 18,
be delayed.
forestation and reforestation costs over 84
and Schedule SE, line 1. Estates and trusts
months. You can also amortize certain busi-
Any loss from this activity not allowed
should enter the net profit or deductible loss
ness startup costs over a period of at least
for 2000 because of the at-risk rules is treat-
here and on Form 1041, line 6. Partnerships
60 months. For details, see Pub. 535. For
ed as a deduction allocable to the activity
should stop here and enter the profit or loss
amortization that begins in 2000, you must
in 2001.
on this line and on Form 1065, line 5 (or
complete and attach Form 4562.
Form 1065-B, line 7).
For details, see Pub. 925. Also, see the
Instructions for Form 6198.
If you have a net profit on line 36, this
At-Risk Loss Deduction. Any loss from
amount is earned income and may qualify
this activity that was not allowed as a de-
you for the earned income credit if you meet
duction last year because of the at-risk rules
certain conditions. See the instructions for
is treated as a deduction allocable to this
Part III. Farm
Form 1040, lines 60a and 60b, for details.
activity in 2000.
Income--Accrual
Bad Debts. See the instructions for Sched-
Method
ule C, line 9, on page C-3.
Line 37
If you use the accrual method, report farm
At-Risk Rules. Generally, if you have (a)
Business Use of Your Home. You may be
income when you earn it, not when you
a loss from a farming activity and (b)
able to deduct certain expenses for business
receive it. Generally, you must include an-
amounts in the activity for which you are
use of your home, subject to limitations. Use
imals and crops in your inventory if you use
not at risk, you will have to complete Form
the worksheet in Pub. 587 to figure your
this method. See Pub. 538 for exceptions,
6198 to figure your allowable loss.
allowable deduction. Do not use Form
inventory methods, how to change methods
8829.
The at-risk rules generally limit the
of accounting, and for rules that require cer-
amount of loss (including loss on the dispo-
tain costs to be capitalized or included in
Deduction for Clean-Fuel Vehicles and
sition of assets) you can claim to the amount
inventory.
Clean-Fuel Vehicle Refueling Property.
you could actually lose in the activity.
You may deduct part of the cost of qualified
Check box 37b if you have amounts for
clean-fuel vehicle property used in your
which you are not at risk in this activity,
Line 38
business and qualified clean-fuel vehicle re-
such as the following.
fueling property. See Pub. 535 for details.
Nonrecourse loans used to finance the Enter the amount earned from the sale of
activity, to acquire property used in the ac-
livestock, produce, grains, and other prod-
Legal and Professional Fees. You can
tivity, or to acquire the activity that are not
ucts you raised.
deduct on this line fees for tax advice related
secured by your own property (other than
to your farm business and for preparation of
property used in the activity). However,
the tax forms related to your farm business.
there is an exception for certain nonrecourse
Lines 39a Through 41c
financing borrowed by you in connection
Travel, Meals, and Entertainment. Gen-
with holding real property.
See the instructions for lines 5a through 7c
erally, you can deduct expenses for farm
beginning on page F-2.
business travel and 50% of your business
Cash, property, or borrowed amounts
meals and entertainment. But there are ex-
used in the activity (or contributed to the
ceptions and limitations. See the instructions
activity, or used to acquire the activity) that
Lines 43 and 44
for Schedule C, lines 24a through 24c, on
are protected against loss by a guarantee,
page C-5.
stop-loss agreement, or other similar ar-
See the instructions for lines 9 and 10 on
rangement (excluding casualty insurance
page F-3.
Preproductive Period Expenses. If you
and insurance against tort liability).
had preproductive period expenses in 2000
Amounts borrowed for use in the ac-
and you decided to capitalize them, you
tivity from a person who has an interest in
must enter the total of these expenses in
the activity, other than as a creditor, or who
parentheses on line 34f and write "263A" in
is related under Internal Revenue Code sec-
the space to the left of the total.
tion 465(b)(3) to a person (other than you)
If you entered an amount in parentheses
having such an interest.
on line 34f because you have preproductive
If all amounts are at risk in this business,
period expenses you are capitalizing, sub-
check box 37a and enter your loss on line
tract the amount on line 34f from the total
36. But if you answered "No" to Question
of lines 12 through 34e. Enter the result on
E, you may need to complete Form 8582 to
line 35.
F-6

Department of the Treasury
Internal Revenue Service
2000 Instructions for Schedule R (Form 1040)
Credit for the
Use Schedule R to figure the credit for the elderly or the disabled.
Additional Information. See Pub. 524 for more details.
Elderly or the
Disabled
Married Persons Filing Separate Returns
Who Can Take the Credit
If your filing status is married filing separately and you lived
with your spouse at any time during 2000, you cannot take
The credit is based on your filing status, age, and income. If
the credit.
you are married filing a joint return, it is also based on your
spouse's age and income.
Nonresident Aliens
You may be able to take this credit if either of the following
applies.
If you were a nonresident alien at any time during 2000, you

may be able to take the credit only if your filing status is
You were age 65 or older at the end of 2000 or
married filing a joint return.
You were under age 65 at the end of 2000 and you meet
all three of the following.
Income Limits
1. You were permanently and totally disabled on the date
See the chart below.
you retired. If you retired before 1977, you must have been
permanently and totally disabled on January 1, 1976, or January
Want the IRS To Figure Your Credit?
1, 1977.
If you can take the credit and you want us to figure it for you,
2. You received taxable disability income for 2000.
check the box in Part I of Schedule R for your filing status
3. On January 1, 2000, you had not reached mandatory
and age. Fill in Part II and lines 11 and 13 of Part III if they
retirement age (the age when your employer's retirement pro-
apply to you. Then, enter "CFE" on the dotted line next to line
gram would have required you to retire).
45 on Form 1040 and attach Schedule R to your return.
For the definition of permanent and total disability, see What
Is Permanent and Total Disability? on page R-2. Also, see
the instructions for Part II.
Income Limits for the Credit for the Elderly or the Disabled
THEN you generally cannot take the credit if:
The amount on Form 1040,
IF you are . . .
line 34, is . . .
Or you received . . .
Single, head of household, or qualifying
$17,500 or more
$5,000 or more of nontaxable social
widow(er)
security or other nontaxable pensions
Married filing a joint return and only
$20,000 or more
$5,000 or more of nontaxable social
one spouse is eligible for the credit
security or other nontaxable pensions
Married filing a joint return and both
$25,000 or more
$7,500 or more of nontaxable social
spouses are eligible for the credit
security or other nontaxable pensions
Married filing a separate return and you
$12,500 or more
$3,750 or more of nontaxable social
lived apart from your spouse for all of
security or other nontaxable pensions
2000
R-1
Cat. No. 11357O

What Is Permanent and Total Disability?
In figuring the credit, disability income does not include
any amount you received from your employer's pension plan
A person is permanently and totally disabled if both 1 and
after you have reached mandatory retirement age.
2 below apply.
For more details on disability income, see Pub. 525.
1. He or she cannot engage in any substantial gainful activity
because of a physical or mental condition and
2. A physician determines that the condition has lasted or
Part II. Statement of Permanent and
can be expected to last continuously for at least a year or can
lead to death.
Total Disability
Examples 1 and 2 on this page show situations in which the
If you checked box 2, 4, 5, 6, or 9 in Part I and you did not
individuals are considered engaged in a substantial gainful
file a physician's statement for 1983 or an earlier year, or you
activity. Example 3 shows a person who might not be consid-
filed or got a statement for tax years after 1983 and your
ered engaged in a substantial gainful activity. In each example,
physician signed on line A of the statement, you must have
the person was under age 65 at the end of the year.
your physician complete a statement certifying that:
You were permanently and totally disabled on the date
Example 1. Sue retired on disability as a sales clerk. She now
you retired or
works as a full-time babysitter at the minimum wage. Although
she does different work, Sue babysits on ordinary terms for
If you retired before 1977, you were permanently and
the minimum wage. She cannot take the credit because she is
totally disabled on January 1, 1976, or January 1, 1977.
engaged in a substantial gainful activity.
You do not have to file this statement with your Form 1040.
But you must keep it for your records. You may use the
Example 2. Mary, the president of XYZ Corporation, retired
physician's statement on page R-4 for this purpose. Your phy-
on disability because of her terminal illness. On her doctor's
sician should show on the statement if the disability has lasted
advice, she works part time as a manager and is paid more
or can be expected to last continuously for at least a year, or
than the minimum wage. Her employer sets her days and hours.
if there is no reasonable probability that the disabled condition
Although Mary's illness is terminal and she works part time,
will ever improve. If you file a joint return and you checked
the work is done at her employer's convenience. Mary is con-
box 5 in Part I, you and your spouse must each get a statement.
sidered engaged in a substantial gainful activity and cannot
If you filed a physician's statement for 1983 or an earlier
take the credit.
year, or you filed or got a statement for tax years after 1983
Example 3. John, who retired on disability, took a job with a
and your physician signed on line B of the statement, you do
former employer on a trial basis. The purpose of the job was
not have to get another statement for 2000. But you must check
to see if John could do the work. The trial period lasted for
the box on line 2 in Part II to certify all three of the following:
some time during which John was paid at a rate equal to the
1. You filed or got a physician's statement in an earlier year.
minimum wage. But because of John's disability, he was given
2. You were permanently and totally disabled during 2000.
only light duties of a nonproductive, make-work nature. Unless
3. You were unable to engage in any substantial gainful
the activity is both substantial and gainful, John is not engaged
activity during 2000 because of your physical or mental con-
in a substantial gainful activity. The activity was gainful be-
dition.
cause John was paid at a rate at or above the minimum wage.
However, the activity was not substantial because the duties
If you checked box 4, 5, or 6 in Part I, enter in the space
were of a nonproductive, make-work nature. More facts are
above the box on line 2 in Part II the first name(s) of the
needed to determine if John is able to engage in a substantial
spouse(s) for whom the box is checked.
gainful activity.
If the Department of Veterans Affairs (VA) certifies that you
are permanently and totally disabled, you can use VA Form
Disability Income
21-0172 instead of the physician's statement. VA Form
Generally, disability income is the total amount you were paid
21-0172 must be signed by a person authorized by the VA to
under your employer's accident and health plan or pension plan
do so. You can get this form from your local VA regional
that is included in your income as wages or payments instead
office.
of wages for the time you were absent from work because of
permanent and total disability. However, any payment you
received from a plan that does not provide for disability re-
tirement is not disability income.
R-2

than the Internal Revenue Code. Do not include amounts that
Part III. Figure Your Credit
are treated as a return of your cost of a pension or annuity.
Do not include on line 13b any pension, annuity, or similar
Line 11
allowance for personal injuries or sickness resulting from active
If you checked box 2, 4, 5, 6, or 9 in Part I, use the following
service in the armed forces of any country, or in the National
chart to complete line 11.
Oceanic and Atmospheric Administration or the Public Health
Service. Also, do not include a disability annuity payable under
IF you checked . . .
THEN enter on line 11. . .
section 808 of the Foreign Service Act of 1980.
Box 6
The total of $5,000 plus the
Line 20
disability income you reported on
Use the worksheet below to figure the credit you may take if
Form 1040 for the spouse who
either 1 or 2 below apply.
was under age 65.
1. The amount on line 20 is more than the amount on Form
Box 2, 4, or 9
The total amount of disability
1040, line 42, minus any amount on Form 1040, line 43, or
income you reported on Form
2. You are claiming the credit for child and dependent care
1040.
expenses on Form 1040, line 44.
Box 5
The total amount of disability
If neither 1 nor 2 above apply to you, enter on Form 1040,
income you reported on Form
line 45, the amount from Schedule R, line 20.
1040 for both you and your
spouse.
Credit Limit Worksheet--Line 20
(keep for your records)
Example 1. Bill, age 63, retired on permanent and total dis-
ability in 2000. He received $4,000 of taxable disability income
1. Enter the amount from Form 1040,
that he reported on Form 1040, line 7. He filed a joint return
line
42,
minus
any
amount
on
with his wife who was age 67 in 2000. On line 11, Bill enters
Form 1040, line 43
1.
$9,000 ($5,000 plus the $4,000 of disability income reported
2. Enter
the
amount,
if
any,
from
on Form 1040).
Form 1040, line 44
2.
Example 2. John checked box 2 in Part I and enters $5,000
3. Subtract line 2 from line 1
3.
on line 10. He received $3,000 of taxable disability income,
4. Enter the credit you first figured on
which he enters on line 11. John also enters $3,000 on line 12
Schedule R, line 20
4.
(the smaller of line 10 or line 11). The largest amount he can
5. Enter the smaller of line 3 or line 4 here
use to figure the credit is $3,000.
and on Form 1040, line 45. If line 3 is
the smaller amount, also replace the
Lines 13a Through 18
amount on Schedule R, line 20, with that
The amount on which you figure your credit may be reduced
amount
5.
if you received certain types of nontaxable pensions and an-
nuities. The amount may also be reduced if your adjusted gross
income is over a certain amount, depending on which box you
checked in Part I.
Line 13a. Enter any social security benefits (before deduction
of Medicare premiums) you (and your spouse if filing a joint
return) received for 2000 that are not taxable. Also, enter any
tier 1 railroad retirement benefits treated as social security that
are not taxable.
If any of your social security or equivalent railroad retirement
benefits are taxable, the amount to enter on this line is generally
the difference between the amounts entered on Form 1040, line
20a and line 20b.
Note. If your social security or equivalent railroad retirement
benefits are reduced because of workers' compensation bene-
fits, treat the workers' compensation benefits as social security
benefits when completing Schedule R, line 13a.
Line 13b. Enter the total of the following types of income that
you (and your spouse if filing a joint return) received for 2000.
Veterans' pensions (but not military disability pensions).
Any other pension, annuity, or disability benefit that is
excluded from income under any provision of Federal law other
R-3

Instructions for Physician's Statement
Taxpayer
1. He or she cannot engage in any substantial gainful
activity because of a physical or mental condition and
If you retired after 1976, enter the date you retired in the
space provided on the statement below.
2. A physician determines that the disability has lasted or
can be expected to last continuously for at least a year or
can lead to death.
Physician
A person is permanently and totally disabled if both of the
following apply:
Physician's Statement (keep for your records)
I certify that
Name of disabled person
was permanently and totally disabled on January 1, 1976, or January 1, 1977, or was permanently and totally disabled on the date
he or she retired. If retired after 1976, enter the date retired.
Physician: Sign your name on either line A or B below.
A The disability has lasted or can be expected to
last continuously for at least a year
Physician's signature
Date
B There is no reasonable probability that the
disabled condition will ever improve
Physician's signature
Date
Physician's name
Physician's address
R-4

2000
Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment.
The Social Security Administration uses the information from Schedule SE to figure your
Instructions for
benefits under the social security program. This tax applies no matter how old you are and
even if you are already getting social security or Medicare benefits.
Schedule SE,
Additional Information. See Pub. 533.
Self-Employment
Tax
religious order who has not taken a vow of
must pay SE tax, you may not reduce your
General Instructions
poverty, or a Christian Science practitioner.
net earnings by the foreign housing exclu-
But if you filed Form 4361 and received
sion or deduction.
IRS approval, you will be exempt from
A Change To Note
See Pub. 517 for details.
paying SE tax on those net earnings. If you
For 2000, the maximum amount of self-
had no other income subject to SE tax, write
Members of Certain Religious
employment income subject to social secu-
"ExemptForm 4361" on line 52 of Form
Sects
rity tax is $76,200.
1040. However, if you had other earnings
of $400 or more subject to SE tax, see line
If you have conscientious objections to
social security insurance because of your
Who Must File Schedule SE
A at the top of Long Schedule SE.
membership in and belief in the teachings
You must file Schedule SE if:
Revocation of Election. If you previously
of a religious sect recognized as being in
existence at all times since December 31,
1. You were self-employed and your net
filed Form 4361 and received IRS approval,
1950, and which has provided a reasonable
earnings from self-employment from other
you can revoke that election to be exempt
level of living for its dependent members,
than church employee income were $400 or
from SE tax. To do so, you must file Form
you are exempt from SE tax if you received
more or
2031. See Form 2031 for details.
IRS approval by filing Form 4029. In this
2. You had church employee income of
case, do not file Schedule SE. Instead, write
$108.28
or
more--see
Employees
of
Note. Once you file Form 2031 to elect
"ExemptForm 4029" on Form 1040, line
Churches and Church Organizations
social security coverage on your earnings as
52. See Pub. 517 for details.
below.
a minister you cannot revoke that election.
U.S. Citizens Employed by Foreign
Who Must Pay Self-
If you must pay SE tax, include this
Governments or International
Employment (SE) Tax?
income on line 2 of either Short or Long
Organizations
Schedule SE. But do not report it on line 5a
Self-Employed Persons
of Long Schedule SE; it is not considered
You must pay SE tax on income you earned
church employee income. Also, include on
as a U.S. citizen employed by a foreign gov-
You must pay SE tax if you had net earnings
line 2:
ernment (or, in certain cases, by a wholly
of $400 or more as a self-employed person.
The rental value of a home or an al- owned instrumentality of a foreign govern-
If you are in business for yourself or you
lowance for a home furnished to you (in-
ment or an international organization under
are a farmer, you are self-employed.
cluding payments for utilities) and
the International Organizations Immunities
You must also pay SE tax on your share

Act) for services performed in the United
The value of meals and lodging
of certain partnership income and your guar-
States,
Puerto
Rico,
Guam,
American
provided to you, your spouse, and your de-
anteed payments. See Partnership Income
Samoa, the Commonwealth of the Northern
pendents for your employer's convenience.
or Loss on page SE-2.
Mariana Islands (CNMI), or the Virgin Is-
However, do not include on line 2:
lands. Report income from this employment
Employees of Churches and
Retirement benefits you received from on Schedule SE (Section A or B), line 2. If
Church Organizations
a church plan after retirement or
you performed services elsewhere as an em-

ployee of a foreign government or an inter-
If you had church employee income of
The rental value of a home or an al-
national organization, those earnings are
$108.28 or more, you must pay SE tax.
lowance for a home furnished to you (in-
exempt from SE tax.
Church employee income is wages you re-
cluding
payments
for
utilities)
after
ceived as an employee (other than as a min-
retirement.
U.S. Citizens or Resident Aliens
ister or member of a religious order) from
If you were a duly ordained minister who
Living Outside the United States
a church or qualified church-controlled or-
was an employee of a church and you must
ganization that has a certificate in effect
pay SE tax, the unreimbursed business ex-
If you are a self-employed U.S. citizen or
electing an exemption from employer social
penses that you incurred as a church em-
resident alien living outside the United
security and Medicare taxes.
ployee are allowed only as an itemized
States, in most cases you must pay SE tax.
deduction for income tax purposes. Subtract
You may not reduce your foreign earnings
Ministers and Members of
the allowable amount from your SE earnings
from self-employment by your foreign
Religious Orders
when figuring your SE tax.
earned income exclusion.
In most cases, you must pay SE tax on sal-
If you were a U.S. citizen or resident alien
Exception. The United States has social se-
aries and other income for services you per-
serving outside the United States as a min-
curity agreements with many countries to
formed as a minister, a member of a
ister or member of a religious order and you
eliminate dual taxes under two social secu-
SE-1
Cat. No. 24334P

rity systems. Under these agreements, you
Fiscal Year Filers
be treated as SE income by the nonmember
must generally pay social security and Med-
spouse even in community property states.
icare taxes to only the country you live in.
If your tax year is a fiscal year, use the tax
rate and earnings base that apply at the time
The United States now has social security
Share Farming
the fiscal year begins. Do not prorate the tax
agreements with the following countries:
or earnings base for a fiscal year that over-
You are considered self-employed if you
Austria, Belgium, Canada, Finland, France,
laps the date of a rate or earnings base
produced crops or livestock on someone
Germany, Greece, Ireland, Italy, Luxem-
change.
else's land for a share of the crops or live-
bourg, the Netherlands, Norway, Portugal,
stock produced (or a share of the proceeds
Spain, Sweden, Switzerland, and the United
from the sale of them). This applies even if
Kingdom. Additional agreements are ex-
you paid another person (an agent) to do the
pected in the future. For more information,
Specific Instructions actual work or management for you. Report
contact:
your net earnings for income tax purposes
Read the chart on page 1 of Schedule SE to
on Schedule F (Form 1040) and for SE tax
Social Security Administration
see if you can use Section A, Short Schedule
purposes on Schedule SE. See Pub. 225 for
Office of International Programs
SE, or if you must use Section B, Long
details.
P.O. Box 17741
Schedule SE. For either section, you need
Baltimore, MD 21235
to know what to include as net earnings from
Other Income and Losses
self-employment. Read the following in-
More Than One Business
structions to see what to include as net earn-
Included in Net Earnings
ings and how to fill in lines 1 and 2 of either
From Self-Employment
If you were a farmer and had at least one
Short or Long Schedule SE. Enter all neg-
other business or you had two or more busi-
Rental income from a farm if, as land-
ative amounts in parentheses.
nesses,
your
net
earnings
from
self-
lord, you materially participated in the pro-
employment are the combined net earnings
duction or management of the production of
from all of your businesses. If you had a
farm products on this land. This income is
loss in one business, it reduces the income
Net Earnings From Self-
farm earnings. To determine whether you
from another. Figure the combined SE tax
Employment
materially participated in farm management
on one Schedule SE.
or production, do not consider the activities
of any agent who acted for you. The material
What Is Included in Net SE
Joint Returns
participation tests are explained in Pub. 225.
Earnings?
Cash or a payment-in-kind from the
Show the name of the spouse with SE
In most cases, net earnings include your net
Department of Agriculture for participating
income on Schedule SE. If both spouses
profit from a farm or nonfarm business. If
in a land diversion program.
have SE income, each must file a separate
you were a partner in a partnership, see the
Payments for the use of rooms or other
Schedule SE. However, if one spouse qual-
following instructions.
space when you also provided substantial
ifies to use Short Schedule SE and the other
services. Examples are hotel rooms, board-
has to use Long Schedule SE, both can use
Partnership Income or Loss
ing houses, tourist camps or homes, parking
the same form. One spouse should complete
lots, warehouses, and storage garages.
the front and the other the back.
If you were a general or limited partner in
Income from the retail sale of newspa-
Include the total profits or losses from all
a partnership, include on line 1 or line 2,
pers and magazines if you were age 18 or
businesses on Form 1040, as appropriate.
whichever applies, the amount from line 15a
older and kept the profits.
Enter the combined SE tax on Form 1040,
of Schedule K-1 (Form 1065) or the amount
line 52.
identified
as
net
earnings
from
self-
Amounts received by current or former
employment in box 9 of Schedule K-1
self-employed insurance agents and sales-
Community Income
(Form 1065-B). General partners should
persons that are:
reduce this amount before entering it on
1. Paid after retirement but figured as a
In most cases, if any of the income from a
Schedule SE by any section 179 expense
percentage of commissions received from
business (including farming) is community
deduction claimed, unreimbursed partner-
the paying company before retirement,
income, all of the income from that business
ship
expenses
claimed,
and
depletion
is SE earnings of the spouse who carried on
2. Renewal commissions, or
claimed on oil and gas properties. If you
the business. The facts in each case will
reduce the amount you enter on Schedule
3. Deferred commissions paid after retire-
determine which spouse carried on the busi-
SE, attach an explanation.
ment for sales made before retirement.
ness. If you and your spouse are partners in
If a partner died and the partnership con-
However, certain termination payments
a partnership, see Partnership Income or
tinued, include in SE income the deceased's
received by former insurance salespersons
Loss below.
distributive share of the partnership's ordi-
are not included in net earnings from self-
If you and your spouse had community
nary income or loss through the end of the
employment (as explained below).
income and file separate returns, attach
month in which he or she died. See Internal
Income of certain crew members of
Schedule SE to the return of the spouse with
Revenue Code section 1402(f).
fishing vessels with crews of normally fewer
the SE income. Also, attach Schedule(s) C,
If you were married and both you and
than 10 people. See Pub. 595 for details.
C-EZ, or F.
your spouse were partners in a partnership,
Fees as a state or local government em-
Community income included on
each of you must pay SE tax on your own
ployee if you were paid only on a fee basis
Schedule(s) C, C-EZ, or F must
share of the partnership income. Each of you
and the job was not covered under a Federal-
be divided for income tax pur-
must file a Schedule SE and report the part-
state social security coverage agreement.
poses on the basis of the commu-
nership income or loss on Schedule E (Form
Interest received in the course of any
nity property laws.
1040), Part II, for income tax purposes.
trade or business, such as interest on notes
SE income belongs to the person who is
or accounts receivable.
the member of the partnership and cannot
SE-2

Fees and other payments received by ceive the income in the course of your trade have a loss or a small amount of income
you for services as a director of a corpora-
or business as a dealer in stocks or securities.
from self-employment.
tion.
Gain or loss from:
Recapture amounts under sections 179
Earned Income Credit. Using the optional
1. The sale or exchange of a capital asset;
and 280F that you included in gross income
methods may qualify you to claim the
2. The sale, exchange, involuntary con-
because the business use of the property
earned income credit or give you a larger
version, or other disposition of property
dropped to 50% or less. Do not include
credit if your net SE earnings (determined
unless the property is stock in trade or other
amounts you recaptured on the disposition
without using the optional methods) are less
property that would be includible in inven-
of property. See Form 4797.
than $1,600. Figure the earned income credit
tory, or held primarily for sale to customers

with and without using the optional methods
Fees you received as a professional fi-
in the ordinary course of the business; or
to see if the optional methods will benefit
duciary. This may also apply to fees paid to
3. Certain transactions in timber, coal, or
you.
you as a nonprofessional fiduciary if the fees
domestic iron ore.
relate to active participation in the operation
Child and Dependent Care Credit. The
of the estate's business, or the management
Net operating losses from other years.
optional methods may also help you qualify
of an estate that required extensive manage-
Termination payments you received as for this credit or give you a larger credit if
ment activities over a long period of time.
a former insurance salesperson if all of the
your net SE earnings (determined without
Gain or loss from section 1256 con- following conditions are met.
using the optional methods) are less than
tracts or related property by an options or
1. The payment was received from an
$1,600. Figure this credit with and without
commodities dealer in the normal course of
insurance company because of services you
using the optional methods to see if the op-
dealing in or trading section 1256 contracts.
performed as an insurance salesperson for
tional methods will benefit you.
the company.
Income and Losses Not
2. The payment was received after termi-
Note. Using the optional methods may give
Included in Net Earnings
nation of your agreement to perform serv-
you the benefits described above but they
From Self-Employment
ices for the company.
may also increase your SE tax.
Salaries, fees, etc., subject to social se-
3. You did not perform any services for
Farm Optional Method
curity or Medicare tax that you received for
the company after termination and before
performing services as an employee, includ-
the end of the year in which you received
You may use this method to figure your net
ing services performed as a public official
the payment.
earnings from farm self-employment if your
(except as a fee basis government employee
4. You entered into a covenant not to
gross farm income was $2,400 or less or
as explained earlier under Other Income
compete against the company for at least a
your net farm profits (defined below) were
and Losses Included in Net Earnings
1-year period beginning on the date of ter-
less than $1,733. There is no limit on how
From Self-Employment) or as an employee
mination.
many years you can use this method.
or employee representative under the rail-
5. The amount of the payment depended
Under this method, you report on line 15,
road retirement system.
primarily on policies sold by or credited to
Part II, two-thirds of your gross farm
Fees received for services performed as your account during the last year of the income, up to $1,600, as your net earnings.
a notary public. If you have no other income
agreement, or the extent to which those pol-
This method can increase or decrease your
subject to SE tax, write "Exempt-Notary"
icies remain in force for some period after
net SE farm earnings even if the farming
on Form 1040, line 52. However, if you have
termination, or both.
business had a loss.
other earnings of $400 or more subject to
6. The amount of the payment did not
You may change the method after you file
SE tax, write "Exempt-Notary" and, in pa-
depend to any extent on length of service or
your return. That is, you can change from
rentheses, the amount of your net profit as
overall earnings from services performed for
the regular to the optional method or from
a notary public from Schedule C or Schedule
the company (regardless of whether eligibil-
the optional to the regular method.
C-EZ on the dotted line to the left of line
ity for the payment depended on length of
For a farm partnership, figure your share
3, Schedule SE. Subtract that amount from
service).
of gross income based on the partnership
the total of lines 1 and 2 and enter the result
agreement. With guaranteed payments, your
on line 3.
Statutory Employee Income
share of the partnership's gross income is
Income you received as a retired part-
your guaranteed payments plus your share
If you were required to check the box on
ner under a written partnership plan that
of the gross income after it is reduced by all
line 1 of Schedule C or C-EZ because you
provides for lifelong periodic retirement
guaranteed payments made by the partner-
were a statutory employee, do not include
payments if you had no other interest in the
ship. If you were a limited partner, include
the net profit or (loss) from line 31 of that
partnership and did not perform services for
only guaranteed payments for services you
Schedule C (or the net profit from line 3 of
it during the year.
actually rendered to or on behalf of the part-
Schedule C-EZ) on line 2 of Short or Long
Income from real estate rentals if you
nership.
Schedule SE. But if you file Long Schedule
did not receive the income in the course of
SE, be sure to include statutory employee
Net farm profits is the total of the
a trade or business as a real estate dealer.
social security wages and tips from Form
amounts from Schedule F (Form 1040), line
Report this income on Schedule E.
W-2 on line 8a.
36, and Schedule K-1 (Form 1065), line 15a,
Income from farm rentals (including
from farm partnerships.
rentals paid in crop shares) if, as landlord,
Optional Methods
Nonfarm Optional Method
you did not materially participate in the pro-
duction or management of the production of
How Can the Optional Methods
You may be able to use this method to figure
farm products on the land. See Pub. 225 for
Help You?
your net earnings from nonfarm self-
details.
Social Security Coverage. The optional
employment if your nonfarm profits (de-
Dividends on shares of stock and inter- methods may give you credit toward your fined below) were less than $1,733 and also
est on bonds, notes, etc., if you did not re-
social security coverage even though you
less than 72.189% of your gross nonfarm
income. To use this method, you also must
SE-3

be regularly self-employed. You meet this
requirement if your actual net earnings from
self-employment were $400 or more in 2 of
the 3 years preceding the year you use the
nonfarm method. The net earnings of $400
or more could be from either farm or non-
farm earnings or both. The net earnings in-
clude your distributive share of partnership
income or loss subject to SE tax. Use of the
nonfarm optional method from nonfarm
self-employment is limited to 5 years. The
5 years do not have to be consecutive.
Under this method, you report on line 17,
Part II, two-thirds of your gross nonfarm
income, up to $1,600, as your net earnings.
But you may not report less than your
actual net earnings from nonfarm self-
employment.
You may change the method after you file
your return. That is, you can change from
the regular to the optional method or from
the optional to the regular method. To do
so, file Form 1040X.
Figure your share of gross income from
a nonfarm partnership in the same manner
as a farm partnership. See Farm Optional
Method on page SE-3 for details.
Net nonfarm profits is the total of the
amounts from Schedule C (Form 1040), line
31 (or Schedule C-EZ (Form 1040), line 3),
Schedule K-1 (Form 1065), line 15a
(from other than farm partnerships), and
Schedule K-1 (Form 1065-B), box 9.
Using Both Optional Methods
If you can use both methods, you may report
less than your total actual net earnings from
farm and nonfarm self-employment, but you
cannot report less than your actual net earn-
ings from nonfarm self-employment alone.
If you use both methods to figure net
earnings, you cannot report more than
$1,600 of net SE earnings.
SE-4

2000
Use only if your taxable income (Form 1040, line 39) is $100,000 or more.
If less, use the Tax Table. Even though you cannot use the Tax Rate Schedules
Tax Rate
below if your taxable income is less than $100,000, all levels of taxable
income are shown so taxpayers can see the tax rate that applies to each level.
Schedules
Schedule X--Use if your filing status is Single
If the amount on
Enter on
Form 1040, line
Form 1040,
of the
39, is:
line 40
But not
amount
Over--
over--
over--
$0
$26,250
15%
$0
26,250
63,550
$3,937.50 +
28%
26,250
63,550
132,600
14,381.50 +
31%
63,550
132,600
288,350
35,787.00 +
36%
132,600
288,350
91,857.00 + 39.6%
288,350
Schedule Y-1--Use if your filing status is Married filing jointly or Qualifying widow(er)
If the amount on
Enter on
Form 1040, line
Form 1040,
of the
39, is:
line 40
But not
amount
Over--
over--
over--
$0
$43,850
15%
$0
43,850
105,950
$6,577.50 +
28%
43,850
105,950
161,450
23,965.50 +
31%
105,950
161,450
288,350
41,170.50 +
36%
161,450
288,350
86,854.50 + 39.6%
288,350
Schedule Y-2--Use if your filing status is Married filing separately
If the amount on
Enter on
Form 1040, line
Form 1040,
of the
39, is:
line 40
But not
amount
Over--
over--
over--
$0
$21,925
15%
$0
21,925
52,975
$3,288.75 +
28%
21,925
52,975
80,725
11,982.75 +
31%
52,975
80,725
144,175
20,585.25 +
36%
80,725
144,175
43,427.25 + 39.6%
144,175
Schedule Z--Use if your filing status is Head of household
If the amount on
Enter on
Form 1040, line
Form 1040,
of the
39, is:
line 40
But not
amount
Over--
over--
over--
$0
$35,150
15%
$0
35,150
90,800
$5,272.50 +
28%
35,150
90,800
147,050
20,854.50 +
31%
90,800
147,050
288,350
38,292.00 +
36%
147,050
288,350
89,160.00 + 39.6%
288,350
-71-

Major Categories of Federal Income and Outlays for Fiscal Year 1999
Income and Outlays. These pie charts show the relative sizes of the major categories of Federal income and outlays for fiscal year 1999.
Income
Outlays
Social security, Medicare,
Personal income
Law enforcement and
Surplus to pay down
Social security,
and unemployment and other
taxes
general government
the debt
Medicare, and other
retirement taxes
48%
2%
7%
retirement 1
34%
35%
Social
programs 4
17%
Excise, customs, estate,
National defense,
Corporate
gift, and miscellaneous
Physical, human,
veterans, and foreign
income taxes
taxes
and community
Net interest on
affairs 2
10%
8%
development 3
the debt
18%
12%
9%
On or before the first Monday in February of each year, the
2. National defense, veterans, and foreign affairs: About 15%
President is required by law to submit to the Congress a budget
of outlays were to equip, modernize, and pay our armed forces
proposal for the fiscal year that begins the following October. The
and to fund other national defense activities; about 2% were for
budget plan sets forth the President's proposed receipts, spending,
veterans benefits and services; and about 1% were for international
and the surplus or deficit for the Federal Government. The plan
activities, including military and economic assistance to foreign
includes recommendations for new legislation as well as recom-
countries and the maintenance of U.S. embassies abroad.
mendations to change, eliminate, and add programs. After receiv-
3. Physical, human, and community development: These
ing the President's proposal, the Congress reviews it and makes
outlays were for agriculture; natural resources; environment; trans-
changes. It first passes a budget resolution setting its own targets
portation; aid for elementary and secondary education and direct
for receipts, outlays, and the surplus or deficit. Next, individual
assistance to college students; job training; deposit insurance,
spending and revenue bills that are consistent with the goals of
commerce and housing credit, and community development; and
the budget resolution are enacted.
space, energy, and general science programs.
In fiscal year 1999 (which began on October 1, 1998, and ended
4. Social programs: About 12% of total outlays were for Med-
on September 30, 1999), Federal income was $1,827 billion and
icaid, food stamps, temporary assistance for needy families, sup-
outlays were $1,703 billion, leaving a surplus of $124 billion.
plemental security income, and related programs; and 6% for
health research and public health programs, unemployment com-
Footnotes for Certain Federal Outlays
pensation, assisted housing, and social services.
1. Social security, Medicare, and other retirement: These
programs provide income support for the retired and disabled and
medical care for the elderly.
Note. Detail may not add to totals due to rounding.The percentages on this page exclude undistributed offsetting receipts, which were -$40 billion in fiscal year 1999. In the budget,
these receipts are offset against spending in figuring the outlay totals shown above. These receipts are for the U.S. Government's share of its employee retirement programs, rents and
royalties on the Outer Continental Shelf, and proceeds from the sale of assets.

Index to Instructions
Foreign-Source Income
2021
Pensions and Annuities
2325
A
Foreign Tax Credit
3435
Preparer--Tax Return
52
Form W-2
21
Presidential Election $3 Check-Off
19
Address Change
19 and 53
Forms W-2, 1098, and 1099, Where To
Private Delivery Services
18
Addresses of Internal Revenue Service
Report Certain Items From
1718
Centers
Back Cover
Public Debt, Gift To Reduce the
53
Forms, How To Get
7
Adjusted Gross Income
2730
Publications, How To Get
7
Adoption Expenses--
Credit for
38
G
Q
Employer-Provided Benefits for
21
Gambling
26 and A-6*
Qualified Retirement Plans--Deduction for
30
Advance Earned Income Credit Payments
38
Gifts to Charity
A-4*
Qualified State Tuition Program Earnings
17 and 26
After School Child Care Expenses
35
Golden Parachute Payments
39
Alimony Paid
30
Group-Term Life Insurance, Uncollected Tax on
39
R
Alimony Received
22
Railroad Retirement Benefits--
Alternative Minimum Tax
3334
H
Treated as a Pension
23
Amended Return
54
Head of Household
19
Treated as Social Security
25
Amount You Owe
51
Health Insurance Deduction--
Records--How Long To Keep
5354
Annuities
2325
Self-Employed
29 and 30
Refund
5051
At-Risk Rules
C-6*, E-3*, and F-6*
Help With Unresolved Tax Issues
6
Refund Information
11
Attachments to the Return
52
Home, Sale of
D-2*
Refund Offset
50
Household Employment Taxes
38
Refunds, Credits, or Offsets of State and
B
Local Income Taxes
22
Blindness--Proof of
3031
I
Rental Income and Expenses (Schedule E)
E-1*
Business Income and Expenses (Schedule C)
C-1*
Income
2027
Retirement Plan Deduction--Self-Employed
30
Business Use of Home
A-5*, C-5*, and F-6*
Income Tax Withholding (Federal)
39 and 53
Rights of Taxpayers
53
Individual Retirement Arrangements (IRAs)--
Rollovers
23 and 25
C
Contributions to (line 23)
14 and 27
Roth IRAs
23
Rounding Off to Whole Dollars
21
Capital Gains and Losses (Schedule D)
D-1*
Distributions from (lines 15a and 15b)
23
Royalties
E-1*
Capital Gain Distributions
21, 23, and D-1*
Nondeductible Contributions to
23 and 27
Capital Gain Tax Worksheet
33
Injured Spouse Claim
50
Casualty and Theft Losses
A-5*
Innocent Spouse Relief
53
S
Charity--Gifts to
A-4*
Installment Payments
13 and 51
Sale of Home
D-2*
Child and Dependent Care Expenses--
Interest--
Schedules, Instructions for
A-1*
Credit for
35
Late Payment of Tax
55
Scholarship and Fellowship Grants
21
Child Tax Credits
20, 3637, and 50
Penalty on Early Withdrawal of Savings
30
S Corporations
E-5*
Children of Divorced or Separated
Interest Income--
Self-Employment Tax--
Parents--Exemption for
20
Exclusion of Savings Bond Interest
B-1*
Income Subject to
SE-2*
Community Property States
21
Nominee
B-1*
Deduction for One-Half of
29
Contributions To Reduce the Public Debt
53
Taxable
21 and B-1*
Signing Your Return
52
Corrective Distributions
21
Tax-Exempt
21 and B-1*
Social Security and Equivalent Railroad
Customer Service Standards
6
Interest You Paid
A-3*
Retirement Benefits
25
Itemized Deductions or Standard Deduction
3132
Social Security Number
19 and 53
D
Standard Deduction or Itemized Deductions
3132
Day-Care Center Expenses
35
L
State and Local Income Taxes--Taxable
Refunds, Credits, or Offsets of
22
Death of a Taxpayer
54
Line Instructions for Form 1040
1952
Statutory Employees
21, C-2*, and C-6*
Debt, Gift To Reduce the Public
53
Long-Term Care Insurance
29 and A-1*
Student Loan Interest Deduction
14 and 2729
Dependent Care Benefits
21
Lump-Sum Distributions
25
Dependents--
Exemptions for
20
M
T
Standard Deduction
31
Tax and Credits
3038
Medical and Dental Expenses
A-1*
Who Can Be Claimed as
20
Figured by the IRS
32
Medical Savings Accounts (MSAs)
29
Direct Deposit of Refund
5051
Other Taxes--
Mileage Rates, Standard
14, A-1*, A-4*, and C-3*
Disclosure, Privacy Act, and Paperwork Reduction
Alternative Minimum Tax
3334
Act Notice
56
Miscellaneous Itemized Deductions
A-5* and A-6*
Lump-Sum Distributions
25
Dividends--
Mortgage Interest Credit
38 and A-3*
IRAs, Other Retirement Plans, and MSAs
38
Nominee
B-2*
Moving Expenses
29
Recapture
3839
Other Distributions
2122
Section 72(m)(5)
39
Divorced or Separated Parents--Children of
20
N
Self-Employment Tax
SE-1*
Dual-Status Aliens
15
Name Change
19 and 53
Tax Rate Schedules
71
National Debt, Gift To Reduce the
53
Tax Table
5970
E
Nonresident Alien
15 and 19
Taxes You Paid
A-2*
Earned Income Credit (EIC)
14 and 4049
Taxpayer Advocate, Office of
6
Nontaxable Earned Income
42
O
Telephone Assistance--
Education--
Federal Tax Information
1113
Order Blank for Forms and Publications
57
Credits
35 and A-5*
TeleTax Information
1112
Original Issue Discount (OID)
B-1*
Expenses
2729, 35, and A-5*
Tip Income
21 and 38
Other Income
2527
Recapture of Education Credits
32
Tips Reported to Employer, Uncollected Tax on
39
Other Taxes
3839
Elderly Persons--
Trusts--Foreign
B-2*
Expenses for Care of
35
P
Credit for
35
U
Paid Preparer Authorization
52
Standard Deduction
31
Unemployment Compensation
25
Partnerships
E-5*
Electronic Filing (e-file)
3 and 5455
U.S. Citizens and Resident Aliens
Partnership Expenses, Unreimbursed
E-5*
Employee Business Expenses
A-5*
Living Abroad
15 and 20
Passive Activity--
Estates and Trusts
E-6*
Losses
C-2*, E-4*, and F-2*
Estimated Tax
39, 51, 52, and 53
Material Participation
C-2* and F-2*
W
Excess Salary Deferrals
21
Payments
3950
What if You Cannot Pay?
13 and 51
Excess Social Security and RRTA Tax Withheld
50
Penalty--
When Should You File?
15
Exemptions
1920
Early Withdrawal of Savings
30
Where Do You File?
15 and Back Cover
Extension of Time To File
15 and 50
Estimated Tax
52
Who Must File
1516
Frivolous Return
55
Who Should File
15
F
Late Filing
55
Widows and Widowers, Qualifying
19
Farm Income and Expenses (Schedule F)
F-1*
Late Payment
55
Winnings--Prizes, Gambling, and Lotteries
Farm Income Averaging (Schedule J)
J-1*
Other
55
(Other Income)
2527
Filing Requirements
1516
Withholding--Federal Income Tax
39 and 53
Filing Status
19
Foreign Accounts and Trusts
B-2*
* These items may not be included in this package. To reduce printing costs, we have sent you only the forms you may need based on what you filed last year.

Where Do You
If an envelope addressed to
"Internal Revenue
Envelopes without enough postage will
Service Center" came with this booklet, please use
be returned to you by the post office.
File?
it. If you do not have one or if you moved during
Your envelope may need additional
the year, mail your return to the Internal Revenue
postage if it contains more than five
Service Center shown that applies to you.
pages or is oversized (for example, it is over 1/4"
thick). Also, include your complete return address.
THEN use this address if you:
Are not enclosing a check or
Are enclosing a check or money
IF you live in...
money order...
order...
Internal Revenue Service Center
Internal Revenue Service Center
Florida, Georgia, South Carolina, West Virginia
Atlanta, GA 39901-0002
Atlanta, GA 39901-0102
Delaware, New Jersey, New York (New York City and counties of Nassau,
Internal Revenue Service Center
Internal Revenue Service Center
Rockland, Suffolk, and Westchester)
Holtsville, NY 00501-0002
Holtsville, NY 00501-0102
New York (all other counties), Connecticut, Maine, Massachusetts,
Internal Revenue Service Center
Internal Revenue Service Center
New Hampshire, Rhode Island, Vermont
Andover, MA 05501-0002
Andover, MA 05501-0102
Internal Revenue Service Center
Internal Revenue Service Center
Illinois, Iowa, Kansas, Minnesota, Missouri, Oregon, Wisconsin
Kansas City, MO 64999-0002
Kansas City, MO 64999-0102
Internal Revenue Service Center
Internal Revenue Service Center
District of Columbia, Indiana, Maryland, Pennsylvania, Virginia
Philadelphia, PA 19255-0002
Philadelphia, PA 19255-0102
Internal Revenue Service Center
Internal Revenue Service Center
Michigan, Ohio
Cincinnati, OH 45999-0002
Cincinnati, OH 45999-0102
Internal Revenue Service Center
Internal Revenue Service Center
Colorado, Idaho, Montana, New Mexico, Oklahoma, Texas, Wyoming
Austin, TX 73301-0002
Austin, TX 73301-0102
Arizona, California (counties of Alpine, Amador, Butte, Calaveras, Colusa,
Contra Costa, Del Norte, El Dorado, Glenn, Humboldt, Lake, Lassen,
Marin, Mendocino, Modoc, Napa, Nevada, Placer, Plumas, Sacramento,
Internal Revenue Service Center
Internal Revenue Service Center
San Joaquin, Shasta, Sierra, Siskiyou, Solano, Sonoma, Sutter, Tehama,
Ogden, UT 84201-0002
Ogden, UT 84201-0102
Trinity, Yolo, and Yuba), Nevada, North Dakota, South Dakota, Utah,
Washington
Internal Revenue Service Center
Internal Revenue Service Center
California (all other counties), Alaska, Hawaii
Fresno, CA 93888-0002
Fresno, CA 93888-0102
Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Nebraska,
Internal Revenue Service Center
Internal Revenue Service Center
North Carolina, Tennessee
Memphis, TN 37501-0002
Memphis, TN 37501-0102
All APO and FPO addresses, American Samoa, nonpermanent residents of
Guam or the Virgin Islands*, Puerto Rico (or if excluding income under
Internal Revenue Service Center
Internal Revenue Service Center
Internal Revenue Code section 933), a foreign country: U.S. citizens and
Philadelphia, PA 19255-0215 USA
Philadelphia, PA 19255-0215 USA
those filing Form 2555, 2555-EZ, or 4563
* Permanent residents of Guam should use: Department of Revenue and Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921;
permanent residents of the Virgin Islands should use: V.I. Bureau of Internal Revenue, 9601 Estate Thomas, Charlotte Amalie, St. Thomas, VI 00802.
What's Inside?
Instructions for Form 1040
Help with unresolved tax issues
Index (inside back cover)
(page 6)
Free tax help (pages 7 and 55)
When to file (page 15)
What's new for 2000 (page 14)
How to get forms and publications
(page 7)
Commissioner's message (page 2)
Tax table (page 59)
How to comment on forms (page 56)
How to make a gift to reduce the
How to avoid common mistakes
public debt (page 53)
(page 53)