US Internal Revenue Service: i1040ez--1994

8/14/2019 US Internal Revenue Service: i1040ez--1994

1/36

Commissioners message (page 3)

Free tax help (page 8)

How to make a gift to reduce the public debt (page 8)

How to get forms and publications (page 22)

Tax table (page 28)

Cat. No. 12063Z

Avoid common mistakes (page 21)

Instructions for Form

Whats inside?

Note: This booklet does not contain any tax forms.

Department of the TreasuryInternal Revenue Service

19941040EZ

Answers to frequently asked questions (page 6)

Certain people without children maytake the earned income credit onForm 1040EZ for 1994!You may be able to take this credit if youearned less than $9,000 and you or yourspouse were at least age 25. See the line 7instructions on page 15.

Would you like to get your refundwithin 21 days?If you would, have your return filedelectronically as millions of others do. SeeElectronic filing on page 5.

Whats new for 1994 (page 8)

Check your social security number(SSN)!An incorrect or missing SSN will delay your

refund. See page 8 for details on how toget an SSN.

Customer Service Standards (page 3)


2/36

P a g e 2

Table of contents Comm issioner s messa ge 3

Cust omer Service Sta nda rds for 1995 3

Pr ivacy Act and Paperwork Reduct ion Act Not ice 4

What a re my r ights as a taxpayer? 4

Electr onic filing 5

Recycling 5

Answers to frequent ly asked quest ions 6

Where to r epor t ce r ta in it ems from 1994 Forms W-2 and 1099 6

Sect ion 1 Before you fi l l in Form 1040EZ 7

Should I use Form 1040EZ? 7

What s new for 1994? 8

How do I make a gift to reduce the public debt? 8

What free tax help is ava ilable? 8

What if a t axpayer died? 9

What a re the filing da tes and pena lt ies? 10

How do I get copies of my tax returns? 10

Sect ion 2 Fi ling requirements 10Do I have to file? 10

Sect ion 3 Line instruct ions for Form 1040EZ 12

Name, address, and socia l secur ity number 12

President ia l Elect ion Campaign Fund 12

Income 12

Paymen ts and tax 15

Earned income credit 15

Refund or amount you owe 20

Sign your r eturn 21

Avoid common mistakes 21

Sect ion 4 General in formation 22

How do I get forms and publica t ions? 22

Where do I ca ll to ge t answers to my Federa l t ax quest ions? 25

What is Tele-Tax? 26

Tele-Tax Topics 27

Sect ion 5 Tax tab le 28

Sect ion 6 After you f il l in Form 1040EZ 33

Where do I file? 33

What do I need if I wr ite to the IRS? 33What should I do if I move? 33

How long should I keep my tax return? 34

Income tax withholding and es t imated tax payments for 1995 34

How do I amend my tax retu rn? 34

Index 35

Major categories of Federal income and outlaysfor fiscal year 1993 36


3/36

P a g e 3

If you file a complete and accurate tax returnand you are due a refund, your refund will beissued within 40 days if you file a paper returnor within 21 days if you file electronically.

I want you to know that the S in IRS represents a commitment to serve you.

We intend to meet your needs and expectations as taxpayers and as customers. If theservice you receive from the IRS does not measure up to our Customer ServiceStandards, please let us know.

Dear Taxpayer:

Margar et Milner Richar dson

The Internal Revenue Service has embarked on several major initiatives thatwill improve our service to you, the American taxpayer.

The National Performance Review (NPR), chartered by the President and led byth e Vice Pr esident, condu cted a n exten sive review of the F ederal governm ent. It spur pose is to ensu re a governmen t t hat works for people. The NP R recognized th eInt erna l Revenue Ser vice as a leader am ong governmen t a gencies in customer service,but challenged th e IRS to ma ke even more progress toward customer service, withemphasis on quality, fairness, and efficiency. Improving customer service is central toth e job of reinventing governmen t t o make it work bett er a nd cost less.

IRS accepted th e NPRs challenge. Our pla ns for cust omer service ar e a ma jorstep toward making better IRS customer service a reality.

We are also increasing our efforts to ensu re a ccur acy of retur n information,particularly Social Security Numbers. Not providing correct information may delayyour tax r efun d un til accur ate information is provided.

With improved service and increased accuracy, I believe that, together, we canmake this the most effective filing season ever.

NATIONALPERFORMANCE

REVIEW

Customer ServiceStandards for 1995

For 1995, we have set the following CustomerService Standards.

We will make tax forms and instructionssimpler and easier for you to use. We madesome good changes this year, but we want yourideas for future improvements. Please call us tollfree or write to us. (See page 4.)

To make it easier for you to meet your taxobligations, we will expand your opportunity forsimplified return filing and payment of your taxesthrough our electronic filing, joint federal/statefiling, touchtone phone, and electronic paymentprograms.

You will have more convenient access to taxlaw and account information. Our pre-recorded

tax information will continue to be available 24hours a day, 7 days a week, and access torefund status information will be extended. Wewill also extend the time that you will be able tocontact our tax assistors to 10 hours eachbusiness day. (See pages 25 and 26.)

Our goal is to answer your questions andprocess your tax returns accurately. To reachthat goal, we will continue to make improve-ments yearly.

Our goal is to resolve your account inquirieswith one contact. To reach that goal, we willmake improvements yearly.

If you provide sufficient and accurate informa-tion to our tax assistors but are given andreasonably rely on an incorrect answer, we will

cancel related penalties. If you have a problem that has not beenresolved through normal processes, you maycontact our Problem Resolution Office. Acaseworker will contact you within one weekand will work with you to resolve the problem.(See page 9.)

COMMISSIONER


4/36

P a g e 4

What should Iknow about thePrivacy Act andPaperworkReduction ActNotice?

The law says that when we ask you for information we must tell you our legalright to ask for the information, why we are asking for it, and how it will beused. We must also tell you what could happen if we do not receive theinformation and whether your response is voluntary, needed for a benefit, ormandat ory under th e law.

This notice applies to all papers you file with us, including this tax return. Italso applies t o any quest ions we need t o ask you so we can complete, corr ect, orprocess your return; figure your tax; and collect the tax, interest, or penalties.

Internal Revenue Code sections 6001, 6011, and 6012(a) say that you must file areturn or statement with us for any tax for which you are liable. Your responseis mandatory under these sections. Code section 6109 says that you must showyour social security number on what you file, so we know who you are and canprocess your return and other papers. You must fill in all parts of the tax formthat apply to you. However, you do not have to check the boxes for thePresidential Election Cam paign Fun d.

We may give th e informa tion t o the Depart ment of Just ice and to other Federalagencies, as provided by law. We may also give it to cities, states, the District ofColumbia, U.S. commonwealths or possessions, and certain foreign governmentsto carr y out their t ax laws.

If you do not file a ret ur n, do not give th e inform at ion ask ed for, or give false

information, you may be charged penalties and you may be subject to criminalprosecut ion. We ma y also ha ve to disallow t he exempt ions, credits, or dedu ctionshown on your ta x retur n. This could ma ke th e ta x higher or delay any r efund.Inter est m ay also be char ged.

Please keep this notice with your records. It may help you if we ask you forother information. If you have questions about the rules for filing and givinginform at ion, pleas e call or visit an y Int erna l Revenue S ervice office.

The t ime i t takes to prepare you r return. The time needed to complete andfile Form 1040EZ will vary depending on individual circumstances. Theestimated average time is:

Recordkeeping 5 min.

Learning about thelaw or the form 49 min.

Preparing the form 1 hr., 20 min.

Copying, assembl ing,and sending the formto the IRS 40 min.

We welcome comments on forms. If you have comments concerning theaccuracy of these time estimates or suggestions for making this form simpler, wewould be happy to hear from you. You can write to both the Internal RevenueService, Attention: Tax Forms Committee, PC:FP, Washington, DC 20224; andthe Office of Managemen t and Bu dget , Paperwork Reduction Project(1545-0675), Washington, DC 20503. Or , you can call the IRS with yoursuggestions at 1-800-829-9043 and leave a recorded message 24 hours a day, 7days a week.

DO NOT send your return to either of these offices. Instead, see Where do Ifi le? on page 33.

What are myrights as ataxpayer?

You have the right to be treated fairly, professionally, promptly, and courteouslyby Internal Revenue Service employees. Our goal at the IRS is to protect yourrights so that you will have the highest confidence in the integrity, efficiency,and fairness of our tax system. To ensure that you always receive suchtr eatm ent, you should know about the m any rights you h ave at each step of thetax process. For details, get Pub. 1 by calling 1-800-TAX-FORM (1-800-829-3676)or use the order blank on page 23.


5/36

P a g e 5

Recycl ing The IRS tries t o use recycled paper for all of its forms an d instr uctions. The taxforms and instructions you received are printed on recyclable paper. If yourcommunity has a recycling program, please recycle. But remember to keep a copy ofyour return and any worksheets you used.

Electronic f i l ing Last year, 14 million people filed their tax returns electronically. Electronic filingoffers the following benefits:

Electronic filing is available whether you prepare your own return or use a preparer.In addition to many tax preparers, other firms are approved by the IRS to offerelectronic filing services. An approved transmitter must sign your Form 8453, U.S.Individual Income Tax Declaration for Electronic Filing. For more details onelectronic filing, call Tele-Tax (see page 26) and listen to topic 252.

Another way to file your return with the IRS is to file an answer sheet return. Thisretu rn , called Form 1040PC, can be creat ed only by using a personal comput er. It isshorter than the regular tax return and can be processed faster and more accurately.A paid tax preparer may give you Form 1040PC to sign and file instead of the tax

return you are used to seeing. If you prepare your own return on a computer, youcan produce Form 1040PC using one of the many tax preparation software programssold in computer stores. The form is not available from the IRS. For more details,call Tele-Tax (see page 26) and listen to topic 251.

Accuracy. Computer programs quickly catch mistakes before they becomeproblems.

Acknowledgement . The IRS notifies your transmitter that your return has beenreceived and accepted.

Refunds . If you file a complete and accurate return, your refund will be issued

within 21 days.* You can also get the convenience and safety of direct deposit. File now , pay later. If you owe tax, file early and pay by April 17, 1995.

Simultaneous Federal /state f i l ing. You may be a ble to file your sta te r etur nelectronically with your Federal return. Check with your preparer or transmitter.

* Some refunds may be temporarily delayed as a result of compliance reviews to ensure that the returnsare a ccurate.


6/36

P a g e 6

Answers tofrequently askedquestions

How can I check on the status of my refund? Call Tele-Tax to getaut omat ed refund informa tion. See page 26 for the num ber.

Can I get the earne d income c redi t? If you earned less than $9,000 (lessthan $25,296 if a child lived with you), you may be able to take this credit. Butother rules apply. For details, see the instructions for line 7 on page 15.

How can I get forms and pu bl icat ions? Call 1-800-TAX-FORM(1-800-829-3676) during the times shown on page 22; or visit your local IRS

office, par ticipating librar y, bank, or post office; or use th e order blank onpage 23.

I receive d unem ployment compe nsat ion in 1994 in addition to my wage s .But Form 1040EZ doesnt have a l ine for une mploymen t compe nsat ion.Should I report i t on l ine 1? No. You cannot file Form 1040EZ. Instead, youmust file Form 1040A or Form 1040.

I asked my e mploye r seve ral t imes for my W-2 form, but I st i l l dont haveit . What s hou ld I do? If you dont get it by Februa ry 15, call th e nu mber list edon page 25 for your area. We will ask you for certain information. For details,see page 14.

I received an IRS not ice. I ve con tacted the IRS at least three t ime sabout i t , but the problem sti l l hasnt bee n fixed. What ca n I do? Call yourlocal IRS office and ask for Problem Resolution assistance. The number is listedin your phone book.

Do I have to f i le a return? It usua lly depends on your filing stat us, th eamount of your gross income, and whether you can be claimed as a dependent onan other per sons 1994 retur n. For deta ils, see page 10.

In addition to my regular job, I had a part-t ime business f ixing cars. DoI have to report the mone y I made in 1994 fix ing cars? Yes. This isself-employmen t income. You cann ot file Form 1040EZ. Inst ead, you m ust fileForm 1040 and Schedule C or C-EZ. You may also have to file Schedule SE topay self-employment tax.

Where to reportcertain items from1994 Forms W-2and 1099

Report any Federalincome tax withheldfrom these forms onForm 1040EZ, line 6

Form Item and box in which it should appear Where to report on Form 1040EZ

W-2 Wages, salaries, tips, etc. (box 1) Line 1Allocated tips (box 8) See Tip income on page 14Advance EIC payments (box 9)Dependent care benefits (box 10)

Must file Form 1040A or Form 1040

W-2G Gambling winnings (box 1) Must file Form 1040

1099-DIV

1099-INT Interest income (box 1)Interest on U.S. savings bonds and

Treasury obligations (box 3)

Line 2

Early withdrawal penalty (box 2)

See the instructions for line 2 thatbegin on page 14

Foreign tax paid (box 5)Must file Form 1040

1099-MISC

1099-OID Original issue discount (box 1)

Other periodic interest (box 2)

See the instructions onForm 1099-OID

Early withdrawal penalty (box 3) Must file Form 1040

1099-R

Dividends and distributions Must file Form 1040A or Form 1040

Miscellaneous income Must file Form 1040

Distributions from pensions,annuities, IRAs, etc.

Must file Form 1040A or Form 1040

1099-G Unemployment compensation (box 1) Must f ile Form 1040A or Form 1040

1099-C Canceled debt (box 2) Must file Form 1040 if taxable (seePub. 525)


7/36

P a g e 7

Section 1Before you fill in Form 1040EZ

Should I use Form1040EZ?

You can use Form 1040EZ ifal l e ight of the following apply:

1 . Your fi ling s ta tus is s ingle or married fi ling jointly (see below).

2. You do not claim any dependents.

3. You (and your spouse if mar ried filing a joint ret urn ) were under age 65 on

January 1, 1995, and not blind at the end of 1994.

4. Your ta xable income (line 5 of Form 1040EZ) is less tha n $50,000.

5. You ha d only wages, salaries, tips, and taxable scholarship or fellowshipgrants, and your taxable interest income was $400 or less.

6. You did not receive any advance earned income credit payments.

7. If you were a nonresident alien at an y time in 1994, your filing stat us mustbe ma rr ied filing joint ly. Specific rules a pply to determ ine if you wer e anonresident or resident alien. Get Pub. 519 for details, including the rules forstudents and scholars.

8. If you a re ma rried filing jointly and either you or your spouse worked for

more than one employer, the total wages of that person were not over$60,600.

If you dont meet al l e ight of the requirements above, you must use Form 1040Aor Form 1040. To find out which form to use, call Tele-Tax (see page 26) andlisten to topic 352. But if you were a nonresident a l ien at any time in 1994and do not file a joint return, you may have to use Form 1040NR. See Pub. 519.

Even if you can use Form 1040EZ, it may benefit you to use Form 1040A orForm 1040 instead. For example, you can claim the head of household filingstatus (which usually results in a lower tax than single) only on Form 1040A orForm 1040. Call Tele-Tax (see page 26) and listen to topic 353. Also, you canitem ize deductions only on F orm 1040. It would benefit you to item ize deductionsif they total more than your standard deduction, which is $3,800 for most single

people and $6,350 for most married people filing a joint return. Call Tele-Tax(see page 26) and listen to topic 501. But if someone can claim you (or yourspouse if married) as a dependent, your stan dard deduction is t he am ountentered on line E of the worksheet on the back of Form 1040EZ.

Single. You may use this filing status ifan y of the following was true onDecember 31, 1994:

You were never married, or

You were legally separated, according to your state law, under a decree ofdivorce or separate maintenance, or

You were widowed before January 1, 1994, and did not remarry in 1994.

Married fi l ing joint return. You may use this filing status ifan y of thefollowing is true:

You were married as of December 31, 1994, even if you did not live with yourspouse at th e end of 1994, or

Your spouse died in 1994 and you did not remarry in 1994, or

Your spouse died in 1995 before filing a 1994 retu rn .

(continued)


8/36

P a g e 8

A husband and wife may file a joint return even if only one had income or ifthey did not live together all year. However, both persons must sign the returnand both are r esponsible. This means t hat if one spouse does not pay th e ta xdue, the other may have to. If you file a joint return for 1994, you may not, afterthe du e date for filing that retu rn, am end it t o file as mar ried filing a separ at ereturn .

Nonresiden t a l iens and dual -status a l iens . You may be able to file a jointreturn. Get Pub. 519 for details.

Whats new for1994?

Social securi ty num ber (SSN). If you dont h ave t he m ailing label, mak e sur eyou enter your SSN. If filing a joint return, also be sure to enter you spousesSSN. If you dont en ter an SSN or if the SSN you ent er is incorr ect, it will ta keus longer to issue any refund shown on your return. To apply for an SSN, getForm SS-5 from your local Social Security Administration (SSA) office or call theSSA at 1-800-772-1213. Fill it in and return it to the SSA. It usually takes about2 weeks to get a n umber.

Earned income credi t . If you do not have any qualifying children, you earnedless than $9,000, and you or your spouse were at least age 25, you may be ableto take this credit. See the instructions for line 7 on page 15. If you can take thecredit, you do not ha ve to file Schedule E IC.

If you have a qualifying child (see page 17) and you earned less than $25,296,you m ay be able to ta ke a lar ger credit. But you m ust use Schedule EIC andForm 1040A or Form 1040 to do so.

Tax law changes . For more details, get Pub. 553.

How do I make agift to reducethe public debt?

If you wish to do so, enclose a separate check with your income tax return. Makeit payable to Bureau of the Public Debt. If you file Form 1040 for 1995 anditemize your deductions, you may be able to deduct this gift.

What free tax

help isavailable?

Tax forms an d publ icat ions. You can answer most of your tax questions by

reading the tax form instructions or one of our many free tax publications. Seepage 22.

Refund information. Our Tele-Tax service can tell you the status of yourrefund. For details, see page 26.

Recorded tax information by telephon e. Tele-Tax also has recorded taxinformation covering many topics. See page 26 for the number to call.

Telephone help. IRS representa tives are a vailable to help you with your taxquestions. If, after reading the tax form instructions and publications, you arenot sure how to fill in your return, or have a question about a notice youreceived from us, please call us. Use the number for your area on page 25.

Send the IRS wri t ten quest ions. You m ay send your written tax questions toyour IRS District Director. You should get an answer in about 30 days. If you

dont h ave th e addr ess, you can get it by calling th e nu mber for your a rea onpage 25.

Walk-in help. Assistors are available in most IRS offices throughout thecountry to help you prepare your return. An assistor will explain Form 1040EZ,Form 1040A, or Form 1040 and Schedules A and B to you and a number of othertaxpayers in a group setting. To find the location of the IRS office nearest you,look in the phone book under United States Government, Internal RevenueService.


9/36

P a g e 9

Volunteer Income Tax Assistance (VITA) and Tax Counseling for theElderly (TCE). These pr ogram s h elp older, disa bled, low-income, a ndnon-English-speaking people fill in their returns. For details, call the number foryour area on page 25. If you received a Federal income tax package in the mail,take it with you when you go for help.

Videotaped instruct ions for completing your return are available in Englishand Spanish at many libraries.

Telephone he lp for people with impaired he aring is available. See page 25

for the number to call. Brail le materials are a vailable at r egional libraries tha tha ve special services for people with disabilities.

Unresolved tax problems. Th e Problem Resolut ion Program is for peoplewho have been unable to resolve their problems with the IRS. If you have a taxproblem you cannot clear up through normal channels, write to your local IRSDistrict Director or call your local IRS office and ask for Problem Resolutionassistance. People with impaired hearing who have access to TDD equipmentmay call 1-800-829-4059 to ask for help from Problem Resolution. This officecannot change the tax law or technical decisions. But it can help you clear upproblems that resulted from previous contacts. For more details, call Tele-Tax(see page 26) and listen to topic 104 or get Pub. 1546.

Do both the nameand socialsecurity numberon your tax formsagree with yoursocial securitycard?

If not, your refund ma y be delayed or you m ay n ot receive credit for your s ocialsecurity earn ings.

If your Form W-2, Form 1099, or other tax document shows an incorrect socialsecurity number or name, notify your employer or the form-issuing agent as soonas possible to make sure your earnings are credited to your social securityrecord. If the name or number on your social security card is incorrect, call theSocial S ecurity Administr at ion at 1-800-772-1213.

What if a taxpayerdied?

If a taxpayer died before filing a return for 1994, the taxpayers spouse orpersonal represent at ive may ha ve to file and sign a retu rn for t hat ta xpayer. Apersonal representative can be an executor, administrator, or anyone who is inchar ge of the deceased ta xpayers propert y. If th e deceased t axpa yer did not ha veto file a r eturn but h ad t ax withheld, a retu rn must be filed to get a refund. Theperson who files the r etu rn should print DECE ASED, th e deceased t axpayersname, and the date of death across the top of the return. If your spouse diedin 1994 and you did not remarry in 1994, or if your spouse died in 1995 beforefiling a return for 1994, you can file a joint return. A joint return should showyour spouses 1994 income before de at h a nd your income for a ll of 1994. WriteFiling as surviving spouse in the area where you sign the return. If someoneelse is the personal r epresentat ive, he or she m ust also sign. The survivingspouse or personal representative should promptly notify all payers of income,including finan cial inst itut ions, of th e taxpa yers deat h. This will ensu re th eproper report ing of income ea rn ed by the t axpayers esta te or heir s.

Claiming a refund for a deceased taxpayer. If you are filing a joint returnas a surviving spouse, file only the tax return to claim the refund. If you are acourt-appointed representative, file the return and attach a copy of the certificateth at shows your appointm ent . All oth er filers request ing the deceased ta xpayersrefund must file the return and attach Form 1310.

For m ore det ails, call Tele-Tax (see page 26) and listen to topic 356 or getPub. 559.


10/36

Page 10

What are the filingdates andpenalties?

When is my tax return due ? Your tax return must be postmarked byApril 17, 1995. If you need more time to complete your return, you can get anautomatic 4-month extension by filing Form 4868 with the IRS by April 17,1995. If you later find that you still need more time, Form 2688 may get you anadditional extension. However, even if you get an extension, the tax you owe isstill due April 17, 1995. If you make a payment with Form 4868 or Form 2688,see the instructions for line 8 on page 20.

What if I f i le or pay late? If you file or pay late, the IRS can charge you

interest and penalties on t he am ount you owe.

If you file late, the penalty is usually 5% of the amount due for each month orpart of a month your retu rn is late, unless you h ave a rea sonable explanat ion. Ifyou do, attach it to your return. The penalty cannot usually be more than 25% ofthe ta x due. We will char ge you int erest on th e penalty from t he due da te of theretu rn (including extensions). If your retu rn is more tha n 60 da ys late, th eminimum penalty will be $100 or the amount of any tax you owe, whichever issmaller.

If you pay your taxes late, the penalty is usually 12 of 1% of the unpaid amountfor each m onth or pa rt of a month the ta x is not pa id. The penalt y cann ot bemore than 25% of the unpaid amount. It applies to any unpaid tax on the return.It also applies to any additional tax shown on a bill not paid within 10 days of

the date of the bill.

Are there other pena l t ies? Yes. Oth er pen alt ies can be im posed for negligence,substa ntial u ndersta tement of tax, and fraud. We will char ge you int erest onthese pena lties from th e due da te of the ret urn (including extensions). Criminalpenalties may be imposed for willful failure to file, tax evasion, or making a falsesta tement . Get Pub. 17 for deta ils.

In addition to any other penalties, the law imposes a penalty of $500 for filing afrivolous return. A frivolous return is one that does not contain informationneeded to figure the correct tax or shows a substantially incorrect tax, becauseyou take a frivolous position or desire to delay or interfere with the tax laws.This includes a ltering or striking out t he preprint ed language a bove the spacewhere you sign.

Operation DesertStorm

If you were a participant in Operation Desert Storm, get Pub. 945.

How do I getcopies of my taxreturns?

If you need a copy of your tax return, use Form 4506. If you have questionsabout your account, call or write your local IRS office. If you want a printed copyof your account, it will be mailed to you free of charge.

Section 2Filing requirements

Do I haveto file? The following rules apply to all U.S. citizens and resident aliens. They also applyto nonresident a l iens and dual-status a l iens who were married to U.S.citizens or residents at the end of 1994 and who have elected to be treated asresident aliens. Specific rules apply to determine if you are a resident ornonresident alien. Get Pub. 519 for details.

Even if you do not have to file a return, you should file one to get a refund ofany Federal income tax withheld. You should also file to get a refund of theearned income credit if you can take the credit.

Note to paren tsExcept ion for chi ldren unde r age 14 . If you are planningto file a tax return for your child who was under age 14 on January 1, 1995, and


11/36

Page 11

certain other conditions apply, you can elect to include your childs income onyour return. But you must use Form 1040 and Form 8814 to do so. If you makethis election, your child will not have to file a return. Call Tele-Tax (see page 26)and listen to topic 553 or get Pub. 929 for details.

If you (or your spouse if filing a joint return) were age 65 or older on January 1,1995, call Tele-Tax (see page 26) and listen to topic 351 to see if you must file areturn. If you do, you must use Form 1040A or Form 1040. If you (and yourspouse if filing a joint return) were under age 65 on January 1, 1995, and an y of

the following three conditions apply to you, you must file a return.

1. Your fi l ing status is single and your gross income (see below) was atleast $6,250.

2. Your fi l ing statu s is m arried fi l ing jointly and your gross income (seebelow) was at least $11,250. But if you did not live with your spouse at theend of 1994 (or on the date your spouse died), you must file a return if yourgross income was at least $2,450.

3. Your pa rent s (or someone else) can claim you as a dependent on th eir 1994return (even if they chose not to claim you) and

Your taxable interest

income was:

$1 or more

$0

more than $600

more than $3,800 if singlemore tha n $3,175 if mar ried

AN D

The total of that incom e plus

your earned income was:

In the above chart, earned income includes wages, tips, and taxable scholarshipand fellowship grants.

Caution: If your gross income was $2,450 or more, you usually cannot beclaimed as a dependent unless you were under age 19 or under age 24 and astu dent. For details, call Tele-Tax (see page 26) and listen to topic 354.

Gross income means all income you received in the form of money, goods,property, an d services th at is not exempt from t ax.

Other s i tuat ions w hen you must f i le . You must also file a return using Form1040A or Form 1040 if you received any advance earned income credit paymentsfrom your employer. These payments should be shown in box 9 of your W-2 form.You must file a return using Form 1040 ifany of the following applies for 1994:

You owe any special taxes, such as social security and Medicare tax on tipsyou did not report to your employer, or

You owe uncollected social security and Medicare or RRTA tax on tips youreported to your employer or on your group-term life insu ra nce, or

You had net earnings from self-employment of at least $400, or

You ear ned wages of $108.28 or m ore from a church or qua lifiedchurch-controlled organization that is exempt from employer social securityand Medicare taxes, or

You owe tax on a qualified retirement plan, including an individualretirement arrangement (IRA). But if you are filing a return only becauseyou owe this tax, you can file Form 5329 by itself.


12/36

Page 12

Section 3Line instructions for Form 1040EZ

Name, address,and socialsecurity number

Why u se th e label? The mailing label on the front of the instruction booklet isdesigned to speed processing at Internal Revenue Service Centers and preventerr ors tha t delay refund checks. But dont a tt ach it u nt il you have finished yourretu rn. Cross out any err ors a nd print the correct informa tion. Add any m issingitems, such as your apartment number.

Address change. If the address on your mailing label is not your currentaddress, cross out your old address and print your new address. If you moveafter you file your 1994 return, see page 33.

Name change . If you changed your n am e because of mar riage, divorce, etc., besure to report this to your local Social Security Administration office before youfile your retur n. This prevents delays in processing your retu rn and issuingrefunds. It also safeguards your future social security benefits. If you received ama iling label, cross out your former nam e an d print your new na me.

If you did not re ceive a label , print the information in the spaces provided.

Social securi ty num ber (SSN). Ent er your SSN in th e area mar ked Yoursocial securit y nu mber. If you a re m ar ried, ent er your h usba nds or wifes SSN

in t he a rea ma rked Spouses social security n um ber. An incorr ect or missingSSN will delay your r efun d. To apply for an SSN, get Form SS-5 from your localSocial Security Administration (SSA) office or call the SSA at 1-800-772-1213.Fill it in and r etur n it t o the SSA. It usu ally takes about 2 weeks to get anumber.

Nonresident a l ien spouse. If your spouse is a nonresident alien, he or shemust get a social security nu mber. But if your spouse cannot get a num berbecau se he or she h ad no income from U.S. sources, print NRA in t he spa ce foryour spouses n um ber.

P.O. box. If your post office does not deliver mail to your home and you have aP.O. box, show your box number instead of your home address.

Foreign address . If your address is outside the United States or its possessionsor ter rit ories, prin t th e inform at ion on t he line for City, town or post office,state, and ZIP code in the following order: city, province or state, postal code,and the n ame of the count ry. Do not abbreviat e the count ry nam e.

PresidentialElectionCampaign Fund

Congress set up this fund to help pay for Presidential election campaign costs.The fund r educes can didat es dependen ce on la rge cont ribut ions from individualsand groups and places candidates on an equal financial footing in the generalelection. If you want $3 to go to this fund, check the Yes box. If you are filing ajoint ret ur n, your spouse m ay a lso have $3 go to the fun d. If you check Yes,your tax or refund will not change.

IncomeLines 15

Rounding off to wh ole dol lars . You may find it easier to do your return if youround off cents to the nearest whole dollar. You can drop amounts that are lessthan 50 cents. For example, $129.39 becomes $129. Increase amounts that are50 cents or more t o the next whole dollar. F or example, $235.50 becomes $236. Ifyou do round off, do so for all amounts. But if you have to add two or moream ount s to figure t he am ount to enter on a line, include cents when adding andonly roun d off the t otal.

Example. You received two W-2 forms, one showing wages of $5,009.55 and oneshowing wages of $8,760.73. On Form 1040EZ, line 1, you would enter 13,770.00($5,009.55 + $8,760.73 = $13,770.28).


13/36

Page 13

Refunds of state or local income taxes . If you received a refund, credit, oroffset in 1994 of state or local income taxes, the state or other taxing authoritymay send you a Form 1099-G. You do not have to include any of it as incomefor 1994 if, in th e year you paid t he t ax, you filed Form 1040EZ or Form 1040A.But if the refund, credit, or offset was for a tax you deducted as an itemizeddeduction on Form 1040, you may have to report part or all of it as income onForm 1040 for 1994. Call Tele-Tax (see page 26) and listen to topic 405 fordetails.

Social securi ty bene f its . Social security and equivalent railroad ret irementbenefits you received may be taxable in some instances. Use the worksheetbelow to see if any of your benefits are taxable. If they are, you MUST use Form1040A or Form 1040.

Social security benefits include any monthly benefit under title II of the SocialSecurity Act or t he par t of a tier 1 r ailroad r etirement benefit tr eated a s a socialsecurity benefit. Social security benefits include monthly survivor and disabilitybenefits paid to you. They do not include any supplemental security income (SSI)payments. By January 31, 1995, you should receive Form SSA-1099 or FormRRB-1099. These forms will show the total benefits paid to you in 1994 and theamount of any benefits you repaid in 1994. For more details, get Pub. 915.

Worksheet to see if any of your social security and/or equivalent railroad

retirement benefits are taxable (keep for your records)

If you are filing a joint return and your spouse also received a Form SSA-1099 orForm RRB-1099, add your spouses a mount s t o your s on lines 1, 3, a nd 4 below.

1. Enter the amount from box 5 ofall your Forms SSA-1099 andForms RRB-1099. If the amounton line 1 is zero or less, stophere; none of your social securitybenefits a re t axable. 1.

2. Enter one-half of the amount on line 1. 2.

3. Enter your total wages, salaries, tips, etc., fromForm (s) W-2. 3.

4. Ent er your total inter est income, including anytax-exempt interest . 4.

5. Add lines 2 through 4. 5.

6. En ter 25,000 if single; 32,000 if filing a joint r etu rn . 6.

7. Subt ra ct line 6 from line 5. If zero or less, en ter -0-. 7.

If the amount on line 7 of the worksheet is zero, none of your social security

benefits are taxable this year. You can use Form 1040EZ. Do not list yourbenefits as income. If the amount on line 7 is more than zero, some of yourbenefits are taxable this year. You MUST use Form 1040A or Form 1040.

Line 1 Enter the total of your income from wages, salaries, and tips. This should beshown in box 1 of your W-2 form from your em ployer. For a joint ret ur n, be su reto include your spouses income on line 1.

You must use Form 1040A or Form 1040 if you received benefits for 1994 underyour employers dependen t car e plan .

(continued)


14/36

Page 14

If you used an employer-provided vehicle for both personal and businesspurposes and 100% of its annual lease value was included as wages on your W-2form, you may be able to deduct the business use of the vehicle. But you mustuse Form 1040 and Form 2106 to do so. For details, get Pub. 917.

If you don t ge t a W-2 form by January 31, 1995, ask your employer for one. Ifyou dont get it by Febru ar y 15, call the n um ber for your a rea listed on page 25.You will be asked for your employers name, address, telephone number, and, ifknown, ident ificat ion n um ber. You will also be asked for your addr ess, social

security number, daytime telephone number, dates of employment, and your bestestim at e of your tota l wages an d Feder al income t ax with held. Even if you dontget a W-2 form, you must still report your earnings. If you lose your W-2 form orit is incorrect, ask your employer for a new one.

Tip income . Be sure to report all tip income you actually received, even if it isnot in cluded in box 1 of your W-2 form (s). But you mu st use Form 1040 andForm 4137 instead of Form 1040EZ if (1) you received tips of $20 or more in anymonth and did not report the full amount to your employer OR (2) your W-2form(s) shows al located t ips that you must report as income. You must reportas income t he a mount of allocat ed tips shown on your W-2 form (s) un less youcan prove with adequate records that you received a smaller amount. Allocatedtips should be shown in box 8 of your W-2 form(s). They are not included in box1 of your W-2 form(s). Use Form 4137 to figure the social security and Medicare

tax on unreported tips. If you reported the full amount to your employer but thesocial security and Medicare tax was not withheld, you must still pay the taxes.For more details on tips, get Pub. 531.

Scholarship and fel lowship grants . If you received a scholarship orfellowship, part or all of it may be taxable even if you didnt receive a W-2 form.If you were a degree candidate, the amounts you used for expenses other thantuition and course-related expenses are taxable. For example, amounts used forroom, board, and travel are taxable. If you were not a degree candidate, the fullamount of the scholarship or fellowship grant is taxable. Add the taxableamount not reported on a W-2 form to any other amounts on line 1. Then, printSCH in the space to the right of the words W-2 form(s) on line 1. AfterSCH, show the taxable amount not reported on a W-2 form.

Lin e 2 In te re st . Report all of your taxable interest income on line 2. Include taxableinterest from banks, savings and loan associations, money market certificates,credit unions, savings bonds, etc. Also, include any interest you received or thatwas credited to your account so you could withdraw it, even if it wasnt enteredin your passbook. If interest was credited in 1994 on deposits that you could notwithdraw because of the bankruptcy or insolvency of the financial institution,you may be able to exclude part or all of that interest from your 1994 income.But you must use Form 1040A or Form 1040 to do so. Get Pub. 550 for details.

Each payer should send you a Form 1099-INT or Form 1099-OID showinginterest you must report. A copy of the form is also sent to the IRS. Even if youdid not receive a Form 1099-INT or Form 1099-OID, you must report all taxableinterest.

Be sure each payer of interest income has your correct social security number.Otherwise, the payer may withhold 31% of the interest income (backupwithh olding). You ma y also be subject t o penalt ies.

If you cashed series EE U.S. savings bonds in 1994 that were issued after 1989and you pa id certa in higher education expenses dur ing the year, you may beable to exclude from income part or all of the interest on those bonds. But youmust use Form 8815 and Form 1040A or Form 1040 to do so.


15/36

Page 15

You must use Form 1040A or Form 1040 ife i ther of the following applies:

You r eceived interest as a nominee (tha t is, in your nam e but the interestincome actually belongs to someone else), or

You received a 1994 Form 1099-INT for U.S. savings bond interest thatincludes amounts you reported before 1994.

For m ore d eta ils, call Tele-Tax (see page 26) an d listen to topic 403.

Tax-exem pt interes t . If you had tax-exempt interest, such as from municipalbonds, pr int TEI in th e spa ce to right of the words Form 1040EZ on line 2.After TEI, show the amount of your tax-exempt interest. Do not addta x-exempt interest in th e total on line 2.

Line 5 Subtract line 4 from line 3. Your tax is figured on this amount.

Tax figured by the IRS. If you want the IRS to figure your tax, complete lines6 and 7 if they apply to you. But if you want us to figure your earned incomecredit, read the instructions below. If you are filing a joint return, use the spaceunder the Note to the left of line 5 to show separately your taxable income andyour spouses ta xable income. Skip lines 8 th rough 11. Sign a nd da te your ret ur n(both spouses must sign a joint return) and enter your occupation(s). Attach the

first copy or Copy B of all your W-2 forms and mail your return by April 17,1995.

If you pa id too much t ax, we will send you a refund. If you didn t pay en oughtax, we will send you a bill. We wont charge you interest or a late paymentpenalty if you pay within 30 days of the notice date or by April 17, 1995,whichever is later. If you want to figure your own tax, complete the rest of yourreturn .

We wi l l a l so f igure the earned income credi t (EIC). If you can take thiscredit, enter the type and amount of any nontaxable earned income (see page 18)in the spaces marked Type and $ to the left of line 7. Then, print EIC inthe space to the right of the words earned income below on line 7. If you donthave to file a return but are filing only to take the earned income credit, follow

all of the above instructions.

Paymentsand tax

Lines 69

Line 6 Enter the total amount of Federal income tax withheld. This should beshown in box 2 of your 1994 Form(s) W-2.

Backup withholding. If you received a 1994 Form 1099-INT or Form1099-OID showing Feder al in come ta x withh eld (backup withh olding), includethe tax withheld in the total on line 6. This should be shown in box 4 of Form1099-INT or Form 1099-OID. To the left of line 6, print Form 1099.

Li ne 7 E ar ne d i nc o me c r e di t (E IC). The EIC is a special credit for certain workers. Itred uces t ax you owe. It m ay give you a refun d even if you dont owe an y ta x. Tosee if you can take this credit, answer the questions on page 16. But first see theCaution below. The credit can be as mu ch as $306 if you dont ha ve a qualifyingchild (defined on page 17). If you have one qualifying child, the credit can be asmuch as $2,038. If you have more than one qualifying child, it can be as muchas $2,528.

Caution: Y ou cannot take the credit if you were the qualifying child of anotherperson in 1994. If you were, prin t N o next t o line 7.

(continued)


16/36

Page 16

Questions to see if you can take the earned income credit

4. Was your home in the United States for more than half of 1994?

5. Is the total of your taxable and nontaxable earned income (seepage 18) less than $9,000? (Nontaxable earned income includesmilitary housing and subsistence, and contributions to a 401(k) plan.)

1. Do you have at least one qualifying child (defined on page 17)?

Stop. You cannot take the credit. Print No next to line 7.

Go to question 3.

2. Were you (or your spouse if filing a joint return) at least age 25 at theend of 1994?

No.

Yes.

Yes.

No.

Stop. You m ay be able to tak e the credit but you must useSchedule EIC and Form 1040A or Form 1040 to do so. Fordetails, get Pub. 596.

Go to question 2.

Yes.

No. Go to question 2.


Go to question 5.

No.

Yes.

Go to question 6.

No.

Yes.


6. Is the amount on Form 1040EZ, line 3, less than $9,000?

You can take the credit. If you want the IRS to f igure it foryou , print EIC in the space to the right of the words earnedincome below on line 7. Also, enter the type and amount of anynontaxable earned income in the spaces marked Type and $to the left of line 7. If you w ant to f igure the credi tyoursel f , fill in the worksheet on page 17.

Stop. You cannot take the credit.

3. Can your parents (or someone else) claim you as a dependent on their 1994tax return?

Go to question 4.

Stop. You cannot take the credit.

No.

Yes.

Yes.

No.


17/36

Page 17

Earned incomecredit worksheet

Earned income credit worksheetLine 7 (keep for your records)

1. Ent er t he a mount from Form 1040EZ, line 1. 1.

2. If you received a taxable scholarship or fellowshipgrant tha t wasn t r eported on a W-2 form, ent er th atamount here. 2.

3. Subtract line 2 from line 1. 3.

4. Enter any nontaxable earned income (see page 18).

Types of nontaxable earned income includecont ribut ions to a 401(k) plan, wh ich should be sh ownin box 13 of your W-2 form , an d m ilitar y housing a ndsubsistence. 4.

5. Add lines 3 and 4. 5.

Caution: If lin e 5 is $9,000 or more, you cannot taketh e credit . Prin t N O next to lin e 7 of Form 1040E Z.

6. Look up the amount on l ine 5above in the EIC Table on page19 to find your credit. Enter thecredit h ere. 6.

7. Ent er t he a mount from Form 1040EZ, line 3. 7.

8 . Is l in e 7 $5 ,0 00 o r mo re ?

YES. Look up the amounton l ine 7 above inthe EIC Table onpage 19 to find yourcredit. Enter thecredit h ere. 8.

NO. Go to line 9.

9 . E ar ne d i n co m e c re d it .

If you checked YES on line 8, enter the smal ler ofline 6 or line 8.

If you checked NO on line 8, ent er t he a mount fromline 6. 9.

Next : Take the amount from line 9 above and enter it on Form 1040EZ, line 7.AN D

If you had any nontaxable earned income (see line 4 above), enter the typand amount of that income in the spaces marked Type and $ on line 7

If you want theIRS to figure yourcredit, see page 15.

Qualifying child. A qualifying child is a child who:

1. Is your son, daught er, adopted child, gran dchild, stepchild, or foster child,and

2. Was (at the end of 1994)

under age 19, or

under age 24 and a full-time st udent, or

any age and permanently and totally disabled, an d

3. Either lived with you in th e United Stat es for more tha n ha lf of 1994 (for allof 1994 if a foster child) OR was born or died in 1994 and your home was thechilds home for t he en tire t ime he or sh e was a live dur ing 1994.

(continued)


18/36

Page 18

Special rules apply if the child was married or is also a qualifying child ofanother person (other than your spouse if filing a joint return). For details, callTele-Tax (see page 26) and listen to t opic 601 or get P ub. 596.

Taxable earned income. This is usua lly the amount reported on Form 1040EZ,line 1. But if line 1 includes an amount for a taxable scholarship or fellowshipgrant tha t wasn t r eported on a W-2 form, subtr act tha t a mount from t he totalon line 1. The result is your taxable earned income for purposes of the earnedincome credit.

Nontaxable earned income. Certain earn ed income is not ta xable, but it m ustbe included to see if you can take the earned income credit. It is also used tofigure th e credit. It includes an ythin g of value (money, goods, or services) tha t isnot t axable wh ich you received from your employer for your work. S omeexamples are listed below.

Basic quar ters and subsistence allowances and the value of in-kind qua rter sand subsistence received from the U.S. military. This amount may be shownon your last Leave an d Ea rn ings Sta tem ent for 1994. If it isnt or you needadditional help, contact your legal assistance office or unit tax advisor.

Housing allowances or rental value of a parsonage for clergy members.

Meals and lodging provided for the convenience of your employer.

Voluntary salary deferrals. If you chose to have your employer contributepart of your pay to certa in retiremen t plan s (such a s a 401(k) plan or t heFederal Thrift Savings Plan) instead of having it paid to you, the Deferredcompensation box in box 15 of your W-2 form should be checked. Theamount deferred should be shown in box 13 of your W-2 form.

Volunta ry salar y reductions, such as under a cafeteria plan, unless th ey areincluded in box 1 of your W-2 form(s). For details, see Pub. 596.

Combat zone excluded pay. If you served in Operation Desert Storm, contactyour legal assistance office or unit tax advisor to find out the amount youreceived in 1994.

Note: N ontaxable earned in com e does n ot include w elfare benefits.

Effect of credi t on certain w el fare be nef i ts . Any refund you receive as theresult of claiming the earned income credit will not be used to determine if youare eligible for the following benefit programs, or how much you can receive fromthem.

Aid to Families With Dependent Children (AFDC).

Medicaid and supplemental security income (SSI).

Food st am ps a nd low-income h ousin g.


19/36

1994 Earned Income Credit (EIC)Table

If the amount online 5 or line 7 ofthe worksheet is

Atleast

Butlessthan

Yourcreditis

Caution: This is not a tax table.

To find your credit: First, read down the At leastBut less thancolumns and find the line that includes the amount you entered online 5 or line 7 of the Earned income credit worksheet on page17. Next, read across and find the credit. Then, enter the credit online 6 or line 8 of the worksheet, whichever applies.

$1 $5050 100

100 150150 200

200 250250 300300 350350 400

400 450450 500

500 550550 600

600 650650 700700 750750 800

800 850850 900900 950950 1,000

1,000 1,0501,050 1,1001,100 1,1501,150 1,200

1,200 1,2501,250 1,3001,300 1,3501,350 1,400

1,400 1,4501,450 1,5001,500 1,5501,550 1,600

1,600 1,6501,650 1,7001,700 1,7501,750 1,800

1,800 1,8501,850 1,900

1,900 1,9501,950 2,000

2,000 2,0502,050 2,1002,100 2,1502,150 2,200

2,200 2,2502,250 2,3002,300 2,3502,350 2,400

2,400 2,4502,450 2,5002,500 2,5502,550 2,600

2,600 2,6502,650 2,7002,700 2,7502,750 2,800

2,800 2,8502,850 2,9002,900 2,9502,950 3,000

3,000 3,0503,050 3,100

3,100 3,1503,150 3,200

3,200 3,2503,250 3,3003,300 3,3503,350 3,400

3,400 3,4503,450 3,5003,500 3,5503,550 3,600

3,600 3,6503,650 3,7003,700 3,7503,750 3,800

3,800 3,8503,850 3,9003,900 3,9503,950 4,000

4,000 4,0504,050 4,1004,100 4,1504,150 4,200

5,000 5,0505,050 5,1005,100 5,1505,150 5,200

5,200 5,2505,250 5,3005,300 5,3505,350 5,400

5,400 5,4505,450 5,5005,500 5,5505,550 5,600

5,600 5,6505,650 5,700

5,700 5,7505,750 5,800

5,800 5,8505,850 5,9005,900 5,9505,950 6,000

6,000 6,0506,050 6,1006,100 6,1506,150 6,200

6,200 6,2506,250 6,3006,300 6,3506,350 6,400

6,400 6,4506,450 6,5006,500 6,5506,550 6,600

6,600 6,6506,650 6,7006,700 6,7506,750 6,800

6,800 6,8506,850 6,9006,900 6,9506,950 7,000

7,000 7,0507,050 7,100

7,100 7,1507,150 7,200

7,200 7,2507,250 7,3007,300 7,3507,350 7,400

7,400 7,4507,450 7,5007,500 7,5507,550 7,600

7,600 7,6507,650 7,7007,700 7,7507,750

Page 19


Atleast

Butlessthan

Yourcreditis


Atleast

Butlessthan

Yourcreditis

$26

1013

17212529

3336

4044

48525559

63677175

78828690

9498101105

109113117120

124128132136

140143

147151

155159163166

170174178182

186189193197

201205208212

216220224228

231235

239243

247251254258

262266270273

277281285289

293296300304

306306306306

304300296293

289285281277

273270266262

258254

251247

243239235231

228224220216

212208205201

197193189186

182178174170

166163159155

151147

143140

136132128124

120117113109

105101

987,800 94

7,800 7,850 907,850 7,900 867,900 7,950 827,950 8,000 78

8,000 8,050 758,050 8,100 718,100 8,150 678,150 8,200 63

8,200 8,250 598,250 8,300 55

8,300 8,350 528,350 8,400 48

8,400 8,450 448,450 8,500 408,500 8,550 368,550 8,600 33

8,600 8,650 298,650 8,700 258,700 8,750 218,750 8,800 17

8,800 8,850 138,850 8,900 108,900 8,950 68,950 9,000 2


Atleast

Butlessthan

Yourcreditis

4,200 4,2504,250 4,3004,300 4,3504,350 4,400

306306306306

4,400 4,4504,450 4,500

4,500 4,5504,550 4,600

306306

306306

4,600 4,6504,650 4,7004,700 4,7504,750 4,800

306306306306

4,800 4,8504,850 4,9004,900 4,9504,950 5,000

306306306306

$9,000or more

youmay nottake the

credit


20/36

Page 20

Line 8 Add lines 6 and 7. En ter the total on line 8.

Amount paid with e xtensions of t ime to f i le . If you filed Form 4868 to getan automatic extension of time to file, include in the total on line 8 the amountyou paid with that form. To the left of line 8, print Form 4868 and show theamount paid. Also, include any amount paid with Form 2688 if you filed for anadditional extension.

Refund oramount youowe

Lines 10 and 11

Lin e 10 Re fu nd. If line 10 is less than $1, we will send the refund only if you request itwhen you file your return. If your refund is large, you may want to decrease theamount of income tax withheld from your pay. See Income tax withholdingand e st imated tax paym ents for 1995 on page 34.

Injured spou se cla im. If you file a joint return and your spouse has not paidchild or spousal support payments or certain Federal debts such a s stu dentloans, all or part of the refund on line 10 may be used to pay the past dueamount. But your part of the amount on line 10 may be refunded to you ifallthree of the following apply:

1 . You are not required to pay the pas t due amount .

2. You r eceived and r eported income (such a s wages, ta xable interest, etc.) onthe joint return.

3. You m ade and r eported payments (such a s Federal income ta x withheld fromyour wages) on the joint return.

Ifall three of the above apply to you and you want your part of the amount online 10 refunded to you, complete Form 8379. Print Injured spouse at the top ofForm 1040EZ and attach Form 8379. If you have already filed your return for1994, file Form 8379 by itself to get your refund. You may also be able to file aninjured spouse claim for prior years. See Form 8379 for details.

Lin e 11 Am ou nt yo u o we . Enclose in the envelope with your return a check or moneyorder payable to the Internal Revenue Service for the full amount when you file.Do not attach the payment to the return. Write your name, address, social

security number, daytime phone number, and 1994 Form 1040EZ on yourpayment. You dont have to pay if line 11 is under $1.

If you owe tax for 1994, you may need to increase the amount of income taxwithheld from your pay. See Income tax withholding and est imated taxpaymen ts for 1995 on page 34.

Instal lment payments . If you cannot pay the full amount shown on line 11with your retu rn, you m ay ask t o make monthly installment payments. However,you will be char ged inter est a nd a late payment penalty on t he ta x not pa id byApril 17, 1995, even if your request to pay in installments is granted. To limitthe interest and penalty charges, pay as mu ch of the t ax as possible when youfile. But before requesting an installment agreement, you should consider otherless costly alterna tives, such as a ba nk loan.

To ask for an installment agreement, use Form 9465, Installment AgreementRequest. You can get Form 9465 by calling 1-800-TAX-FORM (1-800-829-3676).You should receive a response to your request for installments within 30 days.But if you file your return after March 31, it may take us longer to reply.


21/36

Page 21

Pe nal ty for not paying enough tax du ring the year. You may have to pay apenalty if line 11 is at least $500 and it is more than 10% of the tax shown online 9 of your return. You may choose to have the IRS figure the penalty for you.If you owe a pena lty, th e IRS will send you a bill. However, if you wa nt to figurethe penalty yourself on Form 2210, you must file Form 1040A or Form 1040 todo so. The penalty may be waived under certain conditions. Get Pub. 505 fordetails.

Except ions to the penal ty . You will not owe the penalty if:

1. You ha d no tax liability for 1993, you were a U .S. citizen or resident for all of1993, AND your 1993 tax return was for a tax year of 12 full months, or

2. Line 6 on your 1994 return is at least as much as your 1993 tax liability,AND your 1993 tax return was for a tax year of 12 full months.

Sign your return Form 1040EZ is not considered a valid return unless you sign it. If you are filinga joint ret urn , your spouse must also sign. Be sure to date your r etur n a nd ent eryour occupation(s). If you are filing a joint return as a surviving spouse, seeWhat if a taxpayer died? on page 9.

Childs return. If your child can not sign t he r etu rn , sign your childs na me inthe space provided. Then, add By (your signature), parent for minor child.

Paid preparers must s ign your return. Generally, anyone you pay to prepareyour retu rn must sign it in th e space below your signat ure a nd provide certa inother information. The preparer must give you a copy of the return for yourrecords. Someone who prepares your return but does not charge you should notsign your return.

Avoid commonmistakes

Errors maydelay your

refund

1. Did you check your additions, subtra ctions, etc., especially when figuringyour taxable income, Federal income tax withheld, and your refund oramount you owe?

2. Did you check the Yes box on line 4 if your par ent s (or someone else) canclaim you as a dependent on their 1994 return, even if they choose not to

claim you? If no one can claim you as a dependent, did you check the Nobox?

3. Did you ent er an am oun t on line 4? If you checked th e Yes box on line 4,did you fill in the worksheet on the back of Form 1040EZ to figure theamount to enter? If you checked the No box, did you enter 6,250.00 ifsingle; 11,250.00 if married filing jointly?

4 . Did you use the amount from l ine 5 to find your tax in the tax table? Didyou enter the correct tax on line 9?

5. If the a mount on line 3 is under $9,000 and you (or your spouse if filing a joint return) were at least age 25, did you read the instructions for line 7 tosee if you can take the earned income credit?

6. If you didnt get a label, did you ent er your n am e, address, and socialsecurity number in the spaces provided on Form 1040EZ? If you are marriedfiling jointly, did you en ter your spouses n am e a nd s ocial secur ity nu mber?

7. If you got a label, does it show the correct na me(s), address, and socialsecurity number(s)? If not, did you enter the correct information?

8. Did you a tt ach your W-2 form(s) to the left m ar gin of your r etur n? Did yousign and date Form 1040EZ and enter your occupation?


22/36

Page 22

Section 4General information

How do I getforms andpublications?

Generally, we mail forms to you based on what you filed last year. Forms,schedules, an d publications you m ay need ar e listed below. If you dont ha ve anytax questions and you only need tax forms and publications, you can:

Visit your local IRS office.

Visit a par ticipating ba nk or post office to get F orm s 1040, 1040A, 1040EZ,

Schedules A, B, and EIC, Schedules 1 and 2, and their instructions. Visit a participating library, which stocks a wider variety of forms and

publications.

Use the order blank on page 23. You should either receive your order ornotification of the status of your order within 7-15 workdays after we receiveyour request.

Call 1-800-TAX-FORM (1-800-829-3676). The hours of operation during thefiling season are 8:00 A.M. to 5:00 P.M. (weekdays) and 9:00 A.M. to 3:00P.M. (Satu rdays). For callers in Alaska a nd H awaii, the hours a re Pa cificStandard Time. For callers in Puerto Rico, the hours are Eastern StandardTime. You should get your order or n otificat ion of the s ta tu s of your orderwithin 7-15 workdays after you call.

You can get the following forms, schedules, and instructions at participating banks, postoff ices, or l ibraries.

Form 1040Instr uctions for F orm 1040 & SchedulesSchedule A for itemized deductionsSchedule B for int erest and dividend incomeif over $400; and for answering the foreignaccount s or foreign tr usts questionsSchedu le EIC qualifying child information for theearn ed income credit

Form 1040AInstructions for Form 1040A & SchedulesSchedule 1 for F orm 1040A filersto report interest and dividend incomeSchedule 2 for F orm 1040A filersto report child and dependent car e expensesForm 1040EZInstr uctions for F orm 1040EZ

You can photocopy the i tems l i s ted be low (as wel l as those l i s ted above) at partic ipat inglibraries or order them from the IRS.

Schedu le 3, Credit for the E lderly orthe Disabled for F orm 1040A Filers

Schedu le C, Profit or Loss From BusinessSche dule C-EZ, Net Profit From BusinessSchedule D , Capital Gains and LossesSchedu le E, Supplemental Income and LossSchedule F , Profit or Loss From FarmingSchedule R, Credit for th e Elderly or the

DisabledSchedu le SE, Self-Employment TaxForm 1040-ES, Estimated Tax for IndividualsForm 1040X, Amended U.S. Individual

Income Tax ReturnForm 2106, Employee Business ExpensesForm 2106-EZ, Unreimbursed Employee Business

ExpensesForm 2119, Sale of Your HomeForm 2210, Underpayment of Estimated Tax

by Individuals, Estates, and TrustsForm 2441, Child and Dependent Care

ExpensesForm 3903, Moving ExpensesForm 4562, Depreciat ion and Amortizat ionForm 4868, Application for Automatic

Extension of Time To File U.S. IndividualIncome Tax Return

Form 5329, Additional Taxes Attribut ableto Qualified Retirement Plans (Including IRAs),Annuities, and Modified Endowment Contr acts

Form 8283, Noncash Charitable ContributionsForm 8582, Passive Activity Loss Limit ationsForm 8606, Nondeductible IRAs (Contributions,

Distributions, and Basis)

Form 8822, Change of AddressForm 8829, Expenses for Business Use of Your

HomePub. 1, Your Rights as a Ta xpayerPub. 17, Your Federa l Income Ta xPub. 334, Tax Guide for Sm all BusinessPub. 463, Travel, Entertainment, and Gift

ExpensesPub. 501, Exemptions, Standard Deduction,

and Filing Informa tionPub. 502, Medical and Dental ExpensesPub. 505, Tax Withholding and Estimated TaxPub. 508, Educational ExpensesPub. 521, Moving ExpensesPub. 523, Selling Your HomePub. 525, Taxable and Nontaxable IncomePub. 527, Residential Rental Property

(Including Rental of Vacation Homes)Pub. 529, Miscellaneous DeductionsPub. 550, Investment Income and ExpensesPub. 554, Tax Information for

Older AmericansPub. 575, Pension and Annuity IncomePub. 590, Individual Retirement

Arrangement s (IRAs)Pub. 596, Earned Income CreditPub. 910, Guide to Free Tax Services

(includes a list of publications)Pub. 917, Business Use of a CarPub. 929, Tax Rules for Children and

DependentsPub. 936, Home Mortgage Interest Deduction


23/36

Page 23

How do I use theorder blank?

1. Cut the order b lank on the dot ted line and be sure to print or type yourname accurately in the space provided.

2. Circle the items you need. Use the blank spaces to order items not listed. Ifyou n eed more space, atta ch a separ at e sheet of paper listing the additionalitems you need. To help reduce waste, please order only the items you thinkyou will need to prepa re your r etu rn . We will send you t wo copies of eachform and one copy of each publication or set of instructions you circle.

3. Enclose the order blank in your own envelope and send it to the IRS addressshown on page 24. Do not use the envelope we sent you in your tax packagebecau se t his en velope can be used only for filing your income t ax r etu rn . Youshould receive your order or n otificat ion of the st at us of your order within7-15 workdays after we receive your request.

Order blank

Circle theforms,instructions, andpublicationsyou need

Detach at th is line

Fill in yourname andaddress

Schedule R(1040) &

instructions

8582 &instructions

2441 &instructions

1040

Pub. 508

1040EZ

Instructionsfor 1040 &Schedules

Instructionsfor 1040EZ

ScheduleSE (1040)

Pub. 590

8829 &instructions

Pub. 521Schedules

A&B(1040)

1040-ES &instructions

(1995)

3903 &instructions

Pub. 1

1040A Pub. 523

Pub. 910Instructionsfor 1040A &Schedules

Schedule C(1040)

1040X &instructions

4562 &instructions

Pub. 17

Pub. 525

Pub. 917Schedule D

(1040)Schedule 1

(1040A)

2106 &instructions

Pub. 929

Pub. 334

Pub. 527

4868 &instructions

Schedule E(1040)

Schedule 2(1040A)

2119 &instructions

5329 &instructions

Pub. 463

Pub. 529

Schedule 3(1040A) &

instructions

Schedule F(1040)

Pub. 505

ScheduleEIC (1040A

or 1040)

Pub. 596

8822 &instructions

Name

Number, street, and apt. number

City, town or post office, state, and ZIP code

ScheduleC-EZ (1040)

2210 &instructions

8283 &instructions

8606 &instructions

Pub. 501

Pub. 502 Pub. 550

Pub. 575

Pub. 554

Pub. 936

The items in bold type may be picked up at many banks, post offices, and libraries.

2106-EZ &instructions


24/36

Page 24

Send y our order blank to:If you l ive in:

Where do I sendmy order for freeforms andpublications?

Alaska, Arizona, California, Colorado,Hawa ii, Idaho, Kansa s, Monta na,Nevada , New Mexico, Oklah oma,Oregon, Utah, Washington, Wyoming,

Guam, Northern Marianas, AmericanSamoa

Western Area Distribution CenterRancho Cordova, CA95743-0001

Alabama, Arkansas, Illinois, Indiana,Iowa, Kentucky, Louisiana, Michigan,Minnesota , Mississippi, Missouri,Nebraska , North Dakota, Ohio, SouthDakota , Tenness ee, Texas, Wisconsin

Centra l Area Distribution CenterP.O. Box 8903Bloomington, IL 61702-8903

Connecticut, Delaware, District ofColum bia, Florida, Georgia, Maine,Maryland, Massachusetts, NewHampshire, New Jersey, New York,North Carolina, P ennsylvania, RhodeIsland, South Carolina, Vermont,Virginia, West Virginia

Eastern Area Distribution CenterP.O. Box 85074Richmond, VA 23261-5074

Foreign addressesTaxpayers with mailing addresses in foreign countriesshould send the order blank t o either: East ern Area Distribution Center, P.O.Box 25866, Richmond, VA 23286-8107; or Western Area Distribution Center,Rancho Cordova, CA 95743-0001, whichever is closer. Send letter requests forother forms and publications to: Eastern Area Distribution Center, P.O. Box25866, Richm ond, VA 23286-8107.

Puerto RicoEastern Area Distribution Center, P.O. Box 25866, Richmond, VA23286-8107

Virgin IslandsV.I. Bureau of Internal Revenue, Lockhart Gardens No. 1-A,Charlotte Amalie, St. Thomas, VI 00802

Caution: Do not send your tax return to any of the addresses listed below.Instead, see Where d o I fi le? on page 33.


25/36

Page 25

Where do I call toget answers to myFederal taxquestions?

If you want to checkon the status of yourrefund, call Tele-Tax.

See page 26 for thenumber.

Call the IRS with your tax question. If you cannot answer your tax question byreadin g the ta x form instr uctions or one of our free tax pu blications, please call us. Youwill not be charged for the call unless your phone company charges you for local calls.This service is available Monda y th rough F riday from 7:30 a.m. to 5:30 p.m. (hours inAlaska and Hawaii may vary).

Before you cal lIRS representatives care about the quality of the service we provide toyou, our cust omer. You can help u s pr ovide accura te, complete a nswers to your taxquestions by having the following information available:

1. The tax form, schedule, or notice to which your question r elates.

2. The facts about your part icular situation. The answer to the same question oftenvaries from one ta xpayer to a nother becaus e of differences in t heir a ge, income,whether they can be claimed as a dependent, etc.

3. The name of any IRS publication or other source of informat ion t hat you u sed to lookfor the answer.

Before you han g upIf you do not fully understand the answer you receive, or you feelour representative may not fully understand your question, our representative needs toknow this. The representative will be happy to take the additional time required to besure he or she has a nswered your question fully and in the m anner that is most h elpfulto you. By law, you are responsible for paying your fair share of Federal income tax. Ifwe should make an error in answering your question, you are still responsible for the

payment of th e corr ect tax. Sh ould t his occur, however, you will not be char ged anypenalty. To make sure that IRS representatives give accurate and courteous answers, asecond IRS repr esenta tive sometimes listens in on t elephone calls. No record is kept ofan y taxpa yers identit y.

Choos ing the r ight numberUse only the n um ber listed below for your st at e or local calling area . Use a localnumber only if it is not a long distance call for you. Do not dial 1-800 whe n u sing a local num ber. However, ifyour area does not have a local number, dial 1-800-829-1040.

Alabama1-800-829-1040

AlaskaAnchorage, 561-7484Elsewh ere, 1-800-829-1040

ArizonaPh oenix, 640-3900

Elsewh ere, 1-800-829-1040Arkansas1-800-829-1040

CaliforniaOakland, 839-1040Elsewh ere, 1-800-829-1040

ColoradoDenver, 825-7041Elsewh ere, 1-800-829-1040

Connect icut1-800-829-1040

Delaware1-800-829-1040

District of Columbia1-800-829-1040

Florida

Jacksonville, 354-1760Elsewh ere, 1-800-829-1040

GeorgiaAtlanta, 522-0050Elsewh ere, 1-800-829-1040

Hawai iOahu, 541-1040Elsewh ere, 1-800-829-1040

Idaho1-800-829-1040

Ill inoisChicago, 435-1040

In a rea code 708,1-312-435-1040

Elsewh ere, 1-800-829-1040

IndianaIndianapolis, 226-5477Elsewh ere, 1-800-829-1040

IowaDes Moines, 283-0523Elsewh ere, 1-800-829-1040

Kansas1-800-829-1040

Kentucky1-800-829-1040

Louisiana1-800-829-1040

Maine1-800-829-1040

MarylandBaltimore, 962-2590Elsewh ere, 1-800-829-1040

Massachusetts

Boston, 536-1040Elsewh ere, 1-800-829-1040

MichiganDetroit, 237-0800Elsewh ere, 1-800-829-1040

MinnesotaMinneapolis, 644-7515St. Paul, 644-7515Elsewh ere, 1-800-829-1040

Mississippi1-800-829-1040

MissouriSt. Louis, 342-1040Elsewh ere, 1-800-829-1040

Montana1-800-829-1040

NebraskaOmaha, 422-1500

Elsewh ere, 1-800-829-1040Nevada1-800-829-1040

New Hampshire1-800-829-1040

New Jersey1-800-829-1040

New Mexico1-800-829-1040

New YorkBronx, 488-9150Brooklyn, 488-9150Buffalo, 685-5432Manhattan, 732-0100Nassa u, 222-1131Queens, 488-9150Stat en Islan d, 488-9150

Suffolk, 724-5000Elsewh ere, 1-800-829-1040

North Carolina1-800-829-1040

North Dakota1-800-829-1040

OhioCincinnati, 621-6281Cleveland, 522-3000Elsewh ere, 1-800-829-1040

Oklahoma1-800-829-1040

OregonPortland, 221-3960Elsewh ere, 1-800-829-1040

PennsylvaniaPhiladelphia, 574-9900

Pitt sburgh, 281-0112Elsewh ere, 1-800-829-1040

Puerto RicoSan J uan Metro Area,

766-5040Elsewh ere, 1-800-829-1040

Rhode Island1-800-829-1040

South Carolina1-800-829-1040

South Dakota1-800-829-1040

TennesseeNashville, 834-9005Elsewh ere, 1-800-829-1040

Texas

Dallas, 742-2440Houston, 541-0440Elsewh ere, 1-800-829-1040

Utah1-800-829-1040

Vermont1-800-829-1040

VirginiaRichmond, 649-2361Elsewh ere, 1-800-829-1040

WashingtonSeattle, 442-1040Elsewh ere, 1-800-829-1040

West Virginia1-800-829-1040

WisconsinMilwaukee, 271-3780

Elsewh ere, 1-800-829-1040Wyoming1-800-829-1040

Phone Help for PeopleWith Impaired Hearing

All ar eas in U.S.,including Alaska ,Hawa ii, Virgin Islands,and Puert o Rico:1-800-829-4059Note: This number isanswered by TDDequipment only.

Hours of TDD Operation

8:00 A.M. to 6:30 P.M. EST(Jan. 1April 1)

9:00 A.M. to 7:30 P.M. EDT(April 2April 17)

9:00 A.M. to 5:30 P.M. EDT(April 18Oct. 28)

8:00 A.M. to 4:30 P.M. EST(Oct. 29Dec. 31)


26/36

Page 26

What is Tele-Tax? Automated refund information allows you to check t he st at us of your refund.Recorded tax information includes about 140 topics that answer many Federal taxquestions. You can listen t o up to th ree t opics on ea ch call you mak e.

How do I useTele-Tax?

Automated refund information

Be sure to have a copy of your t ax ret urn available becau se you will need to kn ow th efirst social security number shown on your return, the filing status, and the exactwhole-dollar amount of your refund.

Then, call the a ppropriate ph one num ber listed below an d follow th e recorded

instructions.The IRS updates refund information every 7 days. If you call to find out about the statusof your refund a nd do not r eceive a refund m ailing date, please wait 7 days before callingback.

Touch-tone service is available Monday through Friday from 7:00 A.M. to 11:30 P.M.(Hours may vary in your area.)

Recorded tax information

A complete list of these topics is on page 27.

Touch-tone ser vice is a vailable 24 hours a day, 7 days a week.

Select the number of the topic you want to hear. Then, call the appropriate phonenumber listed below.

For the direc tory of topics, l i sten to topic 123.

Have paper and pencil handy to take notes.

Choos ing the r ight numberUse only the n um ber listed below for your st at e or local calling area . Use a localnumber only if it is not a long distance call for you. Do not dial 1-800 whe n u sing a local num ber. However, ifyour area does not have a local number, dial 1-800-829-4477.

Alabama1-800-829-4477

Alaska1-800-829-4477

ArizonaPhoenix, 640-3933Elsewhere,1-800-829-4477

Arkansas1-800-829-4477

California

Counties of Alpine,Amador, Butte,Calaveras, Colusa,Contra Costa, Del

Norte, El Dorado,Glenn, H um boldt,

Lake, Lassen, Marin ,Mendocino, Mod oc,Napa, Nevada,Placer, Plum as,Sacramento,San Joaquin, Sh asta,Sierra, Siskiyou,S olano, Sonoma,S utter, Teham a,Trin ity, Yolo, andYuba,

1-800-829-4032Oakland, 839-4245Elsewhere,1-800-829-4477

ColoradoDenver, 592-1118Elsewhere,1-800-829-4477

Connecticut1-800-829-4477

Delaware1-800-829-4477

District of Columbia628-2929

Florida1-800-829-4477

GeorgiaAtlanta, 331-6572Elsewhere,1-800-829-4477

Hawai i

1-800-829-4477Idaho1-800-829-4477

Il l inoisChicago, 886-9614In area code 708,1-312-886-9614

Springfield, 789-0489Elsewhere,1-800-829-4477

IndianaIndianapolis, 631-1010Elsewhere,1-800-829-4477

IowaDes Moines, 284-7454

Elsewhere,1-800-829-4477

Kansas1-800-829-4477

Kentucky1-800-829-4477

Louis iana1-800-829-4477

Maine1-800-829-4477

MarylandBaltimore, 244-7306Elsewhere,1-800-829-4477

MassachusettsBoston, 536-0709Elsewhere,1-800-829-4477

MichiganDetroit, 961-4282Elsewhere,1-800-829-4477

MinnesotaSt. Paul, 644-7748Elsewhere,1-800-829-4477

Mississippi1-800-829-4477

MissouriSt. Louis, 241-4700Elsewhere,1-800-829-4477

Montana

1-800-829-4477NebraskaOmaha, 221-3324Elsewhere,1-800-829-4477

Nevada1-800-829-4477

New Hampshire1-800-829-4477

New Jersey1-800-829-4477

New Mexico1-800-829-4477

New YorkBronx, 488-8432Brooklyn, 488-8432Buffalo, 685-5533Manhattan, 406-4080Queens, 488-8432Staten Island, 488-8432Elsewhere,1-800-829-4477

North Carolina1-800-829-4477

North Dakota1-800-829-4477

OhioCincinn at i, 421-0329Cleveland, 522-3037Elsewhere,1-800-829-4477

Oklahoma1-800-829-4477

Oregon

Portland, 294-5363Elsewhere,1-800-829-4477

PennsylvaniaPhiladelphia, 627-1040Pittsburgh, 261-1040Elsewhere,1-800-829-4477

Puerto Rico1-800-829-4477

Rhode Is land1-800-829-4477

South Carolina1-800-829-4477

South Dakota1-800-829-4477

TennesseeNashville, 781-5040Elsewhere,

1-800-829-4477TexasDallas, 767-1792Houst on, 541-3400Elsewhere,1-800-829-4477

Utah1-800-829-4477

Vermont1-800-829-4477

VirginiaRichm ond, 783-1569Elsewhere,1-800-829-4477

WashingtonSeatt le, 343-7221Elsewhere,1-800-829-4477

West Virginia1-800-829-4477

WisconsinMilwau kee, 273-8100Elsewhere,1-800-829-4477

Wyoming1-800-829-4477


27/36

TopicTopicTopicSubjectSubjectSubject No.No.No.Tele-Tax Topics

Topic TopicS ubject S ubject N o. N o.

IRS Help Available

IRS servicesVolunteer t axassistance, toll-freetelephone, walk-inassistance, and outreachprograms

101

Tax assistance forindividuals withdisabilities and t hehearing impaired

102

Small Business TaxEducation Program(STEP)Tax help forsmall businesses

103

Problem ResolutionProgramHelp forproblem situations

104

Public librariesTaxinformat ion tapes an dreproducible tax forms

105

Topic numbers areeffective January 1,1995.

911

151

152

153

154

155

156

157

201202

203

204

251

252

253

254

301

302

303

304

305

306

307

308309

310

311

312

999

351

352

353

354

355

356

401

402

403

404

405

406

407

408

409

410

411

412

413

414

415

416

417

418

419

420

421

422

423

424

425

426

451

452

453

454

501

502

503

504

505

506

507

508

509

510

511

512

513

514

515

551

552

553

554

555

556

557

558

601

602

603

651

652

653

701

702

703

704

705

706

751

752

753

755

756

757

758

759

760

761

762

801

802

803

804

805

806

807

851

852

853

854

855

856

901

902

903

904

951

952

953

954

955

956

957

958

959

960

Hardship assistanceapplications

IRS ProceduresYour appeal rights

RefundsHow longthey should take

What to do if youhavent filed your taxretur n (Nonfilers)

Form W-2What to doif not r eceived

Forms andpublicationsHow toorder

Copy of your ta xreturnHow to get one

Change of addressHow to notify IRS

Collection

The collection processWhat to do if you cantpay your t ax

Failure t o pay childsupport and otherFederal obligations

Offers in compromise

Alternative Fi l ingMethods

Form 1040PC taxreturn

Electronic filing

Substitute tax forms

How to choose a taxpreparer

General Information

When, where, and howto file

Highlights of taxchanges

Checklist of commonerrors when preparingyour tax return

Extensions of time tofile your t ax retur n

Recordkeeping

Penalty forunderpayment ofestimated tax

Backup withholding

Amended returnsTax fraudHow toreport

Tax-exempt status fororganizations

How to a pply fortax-exempt status

Power of attorneyinformation

Local in forma tion

Fil ing Requirements,Fi l ing Status, and

Exemptions

Who must file?

Which form 1040,1040A, or 1040EZ?

What is your filing

status?

Dependents

Estimated tax

Decedents

Types of Income

Wages and salaries

Tips

Interest received

Dividends

Refunds of state a ndlocal taxes

Alimony received

Business income

Sole proprietorship

Capital gains an d losses

Pensions and annuities

PensionsThe generalrule an d th e simplifiedgeneral rule

Lump-sum distributions

Rollovers fromretirement plans

Rental income an dexpenses

Renting vacationproperty and renting torelatives

Royalties

Farming and fishingincome

Earnings for clergy

Unemployment

compensationGambling income andexpenses

Bartering income

Scholarship a ndfellowship grants

Nontaxable income

Social security andequivalent railroadretirement benefits

401(k) plans

Passive activitiesLosses and credits

Adjustments to Income

Individual ret irementarra ngements (IRAs)

Alimony pa id

Bad debt deduction

Tax shelters

Itemized Deductions

Should I itemize?

Medical and denta lexpenses

Deductible taxes

Home mortgage points

Interest expense

Contributions

Casualty losses

Miscellaneous expen ses

Business use of home

Business use of car

Business travelexpenses

Business entertainmentexpenses

Educational expenses

Employee businessexpenses

Disaster ar ea losses

Tax Computation

Standar d deduction

Tax and credits figuredby IRS

Tax on a childsinvestment income

Self-employment tax

Five- or ten-year

averaging for lump-sumdistributions

Alternat ive minimumtax

Estate tax

Gift ta x

Tax Credits

Earned income credit(EIC)

Child and dependentcare credit

Credit for the elderly orthe disabled

IRS Notices and Letters

NoticesWhat to do

Notice of underreportedincomeCP 2000

IRS notices and billsand penalty andinterest charges

Basis of Assets,Depreciation, and Sale of

Assets

Sale of your homeGeneral

Sale of your h omeHowto report gain

Sale of your home

Exclusion of gain, a ge55 and over

Basis of assets

Depreciation

Installment sales

Employer TaxInformation

Social security andMedicare withholdingrates

Form W-2Where,when, and how to file

Form W-4Employeeswithholding allowancecertificate

Employer identificationnumber (EIN)How t oapply

Employment taxes forhousehold em ployees

Form 941Depositrequirements

Form 941EmployersQuarterly Federal TaxReturn

Form 940/940-EZDeposit r equirements

Form 940/940-EZEmp loyers Annua lFederal U nemploymentTax Return

Form 945AnnualReturn of Withheld

Federal Income TaxTipsWithholding andreporting

Magnetic MediaFilers1099 Series and

Related InformationReturns

(For electronic fi l ing ofindividual returns, l i sten

to Topic 252.)

Who must filemagnetically

Acceptable media andlocating a third par ty toprepare your files

Applications, forms, andinformation

Waivers and extensions

Test files and combined

Documents

US Internal Revenue Service: i1040ez--1994