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                                                                                           Publication 17
                           Your Federal                                                    Catalog Number 10311G

                           Income Tax                                                      For use in preparing
Department 
of the                     For Individuals                                                 2023              Returns
Treasury
Internal 
Revenue 
Service

       TAX GUIDE

       2023

       Get forms and other information faster and easier at:
       • IRS.gov (English)             • IRS.gov/Chinese (中文)             • IRS.gov/Russian (Pусский) 
       • IRS.gov/Spanish (Español)     • IRS.gov/Korean (한국어)             • IRS.gov/Vietnamese (Tiếng Việt) 

Jan 19, 2024

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                         Your Federal

Department               Income Tax
of the                   For Individuals
Treasury
Internal 
Revenue                  Contents
Service
                         What's New   . . . . . . . . . . . . . . . . . . . . . . . 1  11    Taxes   . . . . . . . . . . . . . . . . . . . . . . 97
                                                                                       12    Other Itemized Deductions       . . . . . . . . .   101
                         Reminders . . . . . . . . . . . . . . . . . . . . . . . .  2
                                                                                       Part Four.  Figuring Your Taxes, and 
                         Introduction . . . . . . . . . . . . . . . . . . . . . . . 3  Refundable and Nonrefundable Credits . .                  107
                                                                                       13    How To Figure Your Tax      . . . . . . . . . . .   107
                         Part One.  The Income Tax Return . . . . . . . . . .       6  14    Child Tax Credit and Credit for Other 
                           1  Filing Information . . . . . . . . . . . . . . . .    6          Dependents . . . . . . . . . . . . . . . . .      109
                           2  Filing Status . . . . . . . . . . . . . . . . . . .   21
                           3  Dependents . . . . . . . . . . . . . . . . . . .      26 2023 Tax Table. . . . . . . . . . . . . . . . . . . . .   112
                           4  Tax Withholding and Estimated Tax         . . . . .   37
                                                                                       2023 Tax Computation Worksheet          . . . . . . . .   124
                         Part Two.  Income and Adjustments 
                           to Income      . . . . . . . . . . . . . . . . . . . . . 46 2023 Tax Rate Schedules . . . . . . . . . . . . . .       124
                           5  Wages, Salaries, and Other Earnings         . . . .   47
                           6  Interest Income . . . . . . . . . . . . . . . . .     54 Your Rights as a Taxpayer     . . . . . . . . . . . . .   126
                           7  Social Security and Equivalent Railroad 
                                   Retirement Benefits . . . . . . . . . . . . . .  62                       . . . . . . . . . . . . . . . . .   127
                                                                                       How To Get Tax Help
                           8  Other Income . . . . . . . . . . . . . . . . . .      67 Index . . . . . . . . . . . . . . . . . . . . . . . . . . 130
                           9  Individual Retirement Arrangements 
                                   (IRAs) . . . . . . . . . . . . . . . . . . . . . 78 Where To File . . . . . . . . . . . . . . . . . . . . .   140
                         Part Three.  Standard Deduction, Itemized 
                           Deductions, and Other Deductions . . . . . .             93
                           10 Standard Deduction      . . . . . . . . . . . . . .   93

All material in this     The explanations and examples in this publication             This publication covers some subjects on which a 
publication may be       reflect the interpretation by the Internal Revenue Service    court may have made a decision more favorable to 
reprinted freely. A      (IRS) of:                                                     taxpayers than the interpretation by the IRS. Until these 
citation to Your Federal • Tax laws enacted by Congress,                               differing interpretations are resolved by higher court 
Income Tax (2023)                                                                      decisions or in some other way, this publication will 
would be appropriate.    • Treasury regulations, and                                   continue to present the interpretations by the IRS.
                         • Court decisions.                                            All taxpayers have important rights when working with 
                                                                                       the IRS. These rights are described in Your Rights as a 
                         However, the information given does not cover every           Taxpayer in the back of this publication.
                         situation and is not intended to replace the law or change 
                         its meaning.

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What's New
This section summarizes important • Line 6m will be used to report Exception to the 10% additional Certain corrective distributions
tax changes that took effect in the credit for previously tax for early distributions. The not subject to 10% early distri-
2023. Most of these changes are owned clean vehicles from exception to the 10% additional tax bution tax. Beginning with distri-
discussed in more detail Form 8936. for early distributions include the butions made on December 29,
throughout this publication. • Line 13c will be used to report following. 2022, and after, the 10% additional
Future developments. For the the elective payment election • Distributions from a retirement tax on early distributions will not
latest information about the tax law amount from Form 3800. plan in connection with feder- apply to the income attributed to a
topics covered in this publication, ally declared disasters. corrective IRA distribution, as long
such as legislation enacted after it Credits for qualified sick and as the corrective distribution is
was published, go to IRS.gov/ family leave wages. The credits • Distribution from a retirement made on or before the due date (in-
Pub17. for qualified sick and family leave plan made to someone who is cluding extensions) of the income
Due date of return. File Form wages paid in 2023 for leave taken terminally ill. tax return.
1040 or 1040-SR by April 15, 2024. before April 1, 2021, and for leave • Distributions to firefighters at Delayed refund for returns
If you live in Maine or Massachu- taken after March 31, 2021, and age 50 or with 25 years of claiming the additional child tax
setts, you have until April 17, 2024, before October 1, 2021, are now service under the plan. credit (ACTC). The IRS cannot is-
because of the Patriots’ Day and reported on Schedule 3, line 13z. sue refunds before mid-February
Emancipation Day holidays. See See Schedule H (Form 1040) for See Form 5329 and Pub. 590-B 2024 for returns that properly claim
chapter 1, later. more information. for more information. ACTC. This time frame applies to
Additonal child tax credit Alternative motor vehicle credit. Direct File. The IRS is taking the entire refund, not just the por-
amount increased. The maxi- The alternative motor vehicle credit steps to implement a Direct File pi- tion associated with ACTC.
mum additional child tax credit has expired. lot during the 2024 filing season. Standard mileage rate. The
amount has increased to $1,600 This pilot will give eligible taxpay- 2023 rate for business use of a ve-
for each qualifying child. Self-employed health insurance ers an option to prepare and elec- hicle is 65.5 cents a mile. The 2023
deduction. Use Form 7206 and tronically file their 2023 federal tax rate for use of your vehicle to do
New clean vehicle credit. The its instructions to determine any returns directly with the IRS for volunteer work for certain charita-
credit for new qualified plug-in amount of the self-employed health free. The Direct File pilot will be of- ble organizations is 14 cents a
electric drive motor vehicles has insurance deduction you may be fered to eligible taxpayers in partic- mile. The 2023 rate for operating
changed. This credit is now known able to claim and report on Sched- ipating states who have relatively expenses for a car when you use it
as the clean vehicle credit. The ule 1 (Form 1040), line 17. simple tax returns reporting only for medical reasons is 22 cents a
maximum amount of the credit and
some of the requirements to claim Qualified charitable distribution certain types of income and claim- mile.
the credit have changed. The credit one-time election. Beginning in ing limited credits and deductions. Modified adjusted gross income
is still reported on Form 8936 and 2023, you can elect to make a See IRS.gov/DirectFile for pilot in- (AGI) limit for traditional IRA
Schedule 3 (Form 1040), line 6f. one-time distribution up to $50,000 formation and updates. contributions. For 2023, if you
For more information, see Form from an individual retirement ac- Health flexible spending ar- are covered by a retirement plan at
8936. count to charities through a charita- rangements (health FSAs) un- work, your deduction for contribu-
Previously owned clean vehicle ble remainder unitrust, or a charita- der cafeteria plans. For tax years tions to a traditional IRA is reduced
credit. This credit is available for ble gift annuity funded only by beginning in 2023, the dollar limita- (phased out) if your modified AGI
previously owned clean vehicles qualified distributions. See Pub. tion under section 1251(i) on volun- is:
acquired and placed in service af- 590-B for more information. tary employee salary reductions for • More than $116,000 but less
ter 2022. For more information, see Increase in required minimum contributions to health FSAs is than $136,000 for a married
Form 8936. distribution age. If you reach age $3,050. couple filing a joint return or a
Who must file. Generally, the 72 in 2023, the required beginning Temporary allowance of 100% qualifying surviving spouse,
amount of income you can receive date for your first required mini- business meal deduction has • More than $73,000 but less
before you must file a return has mum distribution is April 1, 2025. expired. Section 210 of the Tax- than $83,000 for a single indi-
been increased. For more informa- See Pub. 590–B for more informa- payer Certainty and Disaster Tax vidual or head of household,
tion, see chapter 1, later. tion. Relief Act of 2020 provided for the or
Standard deduction amount in- IRA contribution limit increased. temporary allowance of a 100% • Less than $10,000 for a mar-
creased. For 2023, the standard Beginning in 2023, the IRA contri- business meal deduction for food ried individual filing a separate
deduction amount has been in- bution limit is increased to $6,500 or beverages provided by a restau- return.
creased for all filers. The amounts ($7,500 for individuals age 50 or rant and paid or incurred after De-
are: older) from $6,000 ($7,000 for indi- cember 31, 2020, and before Janu- If you either live with your spouse
• Single or Married filing sepa- viduals age 50 or older). ary 1, 2023. or file a joint return, and your
spouse is covered by a retirement
rately—$13,850; Disaster tax relief. The special plan at work but you aren't, your
Deferred compensation contri-
• Married filing jointly or Qualify- bution limit increased. If you rules that provide for tax-favored deduction is phased out if your
ing surviving participate in a 401(k) plan, 403(b) withdrawals and repayments now modified AGI is more than
spouse—$27,700; and plan, or the federal government’s apply to disasters that occur on or $218,000 but less than $228,000. If
• Head of household—$20,800. Thrift Savings Plan, the total an- after January 26, 2021. See Disas- your modified AGI is $228,000 or
nual amount you can contribute is ter-Related Relief in Pub. 590-B for more, you can't take a deduction
See chapter 10, later. increased to $22,500 ($30,000 if more information. for contributions to a traditional
New lines on Schedule 3 (Form age 50 or older) for 2023. This also Distributions to terminally ill in- IRA. See How Much Can You De-
1040). This year Schedule 3 applies to most 457 plans. dividuals. The exception to the duct in chapter 9, later.
(Form 1040) has new lines. Modified AGI limit for Roth IRA
Insurance premiums for retired 10% additional tax for early distri-
• Line 5a will be used to report public safety officers. Eligible re- butions is expanded to apply to contributions. For 2023, your
the residential clean energy tired public safety officers can ex- distributions made after December Roth IRA contribution limit is re-
credit from Form 5695. clude from income up to $3,000 of 29, 2022, to an individual who has duced (phased out) in the following
• Line 5b will be used to report distributions from their eligible re- been certified by a physician as situations.
the energy efficient home im- tirement plan that is paid directly to having a terminal illness. See Pub. • Your filing status is married fil-
provement credit from Form them and is used to pay for health 590-B for more information. ing jointly or qualifying surviv-
5695. insurance premiums. ing spouse and your modified

Publication 17 (2023) 1

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AGI is at least $218,000. You AGI is $10,000 or more. See surviving spouse; $63,250 if mar- other amounts reported on Form
can't make a Roth IRA contri- Can You Contribute to a Roth ried filing separately). The income 1099-K are additional pieces of in-
bution if your modified AGI is IRA in chapter 9, later. levels at which the AMT exemption formation to help determine the
$228,000 or more. begins to phase out have in- correct amounts to report on your
2024 modified AGI limits. You creased to $578,150 ($1,156,300 if return.
• Your filing status is single, can find information about the 2024 married filing jointly or qualifying If you received a Form 1099-K
head of household, or married contribution and modified AGI lim- surviving spouse). that shows payments you didn’t re-
filing separately and you didn't its in Pub. 590-A.
live with your spouse at any Reporting requirements for ceive or is otherwise incorrect,
time in 2023 and your modi- Tax law changes for 2024. When Form 1099-K. Form 1099-K is is- contact the Form 1099-K issuer.
fied AGI is at least $138,000. you figure how much income tax sued by third party settlement or- Don’t contact the IRS; the IRS can’t
You can't make a Roth IRA you want withheld from your pay ganizations and credit card compa- correct an incorrect Form 1099-K.
contribution if your modified and when you figure your estima- nies to report payment transactions If you can’t get it corrected, or you
AGI is $153,000 or more. ted tax, consider tax law changes made to you for goods and serv- sold a personal item at a loss, see
effective in 2024. For more infor- ices. the instructions for Schedule 1,
• Your filing status is married fil- mation, see Pub. 505. lines 8z and 24z, later, for more re-
ing separately, you lived with You must report all income on porting information.
your spouse at any time dur- Alternative minimum tax (AMT) your tax return unless excluded by
ing the year, and your modi- exemption amount increased. law, whether you received the in- All IRS information about Form
fied AGI is more than zero. The AMT exemption amount is in- come electronically or not, and 1099-K is available by going to
You can't make a Roth IRA creased to $81,300 ($126,500 if whether you received a Form IRS.gov/1099K.
contribution if your modified married filing jointly or qualifying 1099-K or not. The box 1a and

Reminders
Listed below are important theft and how to reduce your risk changes to the CTC for 2021 im- Premium tax credit (PTC). The
reminders and other items that may from it, see chapter 1, later. plemented by the American Res- ARP expanded the PTC by elimi-
help you file your 2023 tax return. Taxpayer identification num- cue Plan Act of (the ARP) 2021 nating the limitation that a taxpay-
Many of these items are explained bers. You must provide the tax- have expired. For tax year 2023, er's household income may not ex-
in more detail later in this payer identification number for the follow apply. ceed 400% of the federal poverty
publication. each person for whom you claim • The enhanced credit allowed line and generally increases the
Publication 17 changes. We re- certain tax benefits. This applies for qualifying children under credit amounts. For more informa-
moved the following 2019 chapters even if the person was born in age 6 and children under age tion, see Pub. 974 and Form 8962
from this publication: 6, 8, 9, 10, 2023. Generally, this number is the 18 has expired. For 2023, the and its instructions.
13, 14, 15, 16, 18, 19, 20, 22, 24, person's SSN. See chapter 1, later. initial amount of the CTC is Credits for sick and family leave
25, 26, 29, 30, 31, 33, 34, 35, and Filing status name changed to $2,000 for each qualifying for certain self-employed indi-
36. You can find most of the infor- qualifying surviving spouse. child. The credit amount be- viduals are not available. The
mation previously found in those The filing status qualifying gins to phase out where modi- credits for sick and family leave for
chapters in the primary publication. widow(er) is now called qualifying fied AGI income exceeds certain self-employed individuals
Please see Publication 17 surviving spouse. The rules for the $200,000 ($400,000 in the were not extended and you can no
Changes, later. filing status have not changed. The case of a joint return). The longer claim these credits.
Special rules for eligible gains same rules that applied for qualify- amount of the CTC that can Identity verification. The IRS
invested in Qualified Opportu- ing widow(er) apply to qualifying be claimed as a refundable launched an improved identity veri-
nity Funds. If you have an eligible surviving spouse. credit is limited as it was in fication and sign-in process that
gain, you can invest that gain into a New lines 1a through 1z on 2020 except that the maxi- enables more people to securely
Qualified Opportunity Fund (QOF) Forms 1040 and 1040-SR. This mum ACTC amount for each access and use IRS online tools
and elect to defer part or all of the year, line 1 is expanded and there qualifying child increased to and applications. To provide verifi-
gain that is otherwise includible in are new lines 1a through 1z. Some $1,500. cation services, the IRS is using
income. The gain is deferred until amounts that in prior years were re- • The increased age allowance ID.me, a trusted technology pro-
the date you sell or exchange the ported on Form 1040, and some for a qualifying child has ex- vider. The new process is one
investment or December 31, 2026, amounts reported on Form pired. A child must be under more step the IRS is taking to en-
whichever is earlier. You may also 1040-SR, are now reported on age 17 at the end of 2023 to sure that taxpayer information is
be able to permanently exclude Schedule 1. be a qualifying child. provided only to the person who le-
gain from the sale or exchange of • Scholarships and fellowship For more information, see the In- gally has a right to the data. Tax-
an investment in a QOF if the in- grants are now reported on structions for Schedule 8812 (Form payers using the new mo-
vestment is held for at least 10 Schedule 1, line 8r. 1040). bile-friendly verification procedure
years. For information about what can gain entry to existing IRS on-
types of gains entitle you to elect • Pension or annuity from a Changes to the earned income line services such as the Child Tax
these special rules, see the In- nonqualified deferred com- credit (EIC). The enhancements Credit Update Portal Online Ac-,
structions for Schedule D (Form pensation plan or a non-gov- for taxpayers without a qualifying count Get Transcript Online Get , ,
1040). For information on how to ernmental section 457 plan child implemented by the ARP an Identity Protection PIN (IP PIN),
elect to use these special rules, are now reported on Schedule don't apply for 2023. This means, and Online Payment Agreement.
see the Instructions for Form 8949. 1, line 8t. to claim the EIC without a qualify- Additional IRS applications will
Secure your tax records from • Wages earned while incarcer- ing child in 2023, you must be at transition to the new method over
identity theft. Identity theft occurs ated are now reported on least age 25 but under age 65 at the next year. Each online service
when someone uses your personal Schedule 1, line 8u. the end of 2023. If you are married will also provide information that
information, such as your name, New line 6c on Forms 1040 and filing a joint return, either you or will instruct taxpayers on the steps
SSN, or other identifying informa- 1040-SR. A checkbox was added your spouse must be at least age they need to follow for access to
tion, without your permission, to on line 6c. Taxpayers who elect to 25 but under age 65 at the end of the service. You can also see
commit fraud or other crimes. An use the lump-sum election method 2023. It doesn't matter which IR-2021-228 for more information.
identity thief may use your SSN to for their benefits will check this box. spouse meets the age require- Adoption credit. The adoption
get a job or may file a tax return us- See Instructions for Form 1040. ment, as long as one of the spou- credit and the exclusion for em-
ing your SSN to receive a refund. Child tax credit (CTC) enhance- ses does. ployer-provided adoption benefits
For more information about identity ments have expired. Many are both $15,950 per eligible child

2 Publication 17 (2023)

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in 2023. The amount begins to 8938 and its instructions or go to that are identified as frivolous. The do not receive it, and whether your
phase out if you have modified AGI IRS.gov/Form8938 for details. penalty for filing a frivolous tax re- response is voluntary, required to
in excess of $239,230 and is com- Automatic 6-month extension to turn is $5,000. See chapter 1, later. obtain a benefit, or mandatory un-
pletely phased out if your modified file tax return. You can get an au- Filing erroneous claim for re- der the law. A complete statement
AGI is $279,230 or more. tomatic 6-month extension of time fund or credit. You may have to on this subject can be found in your
ACTC and bona fide residents to file your tax return. See chap- pay a penalty if you file an errone- tax form instructions.
of Puerto Rico. Bona fide resi- ter 1, later. ous claim for refund or credit. See Preparer e-file mandate. Most
dents of Puerto Rico are no longer Payment of taxes. You can pay chapter 1, later. paid preparers must e-file returns
required to have three or more your taxes by making electronic Access your online account. they prepare and file. Your preparer
qualifying children to be eligible to payments online; from a mobile de- You must authenticate your identity. may make you aware of this re-
claim the ACTC. Bona fide resi- vice using the IRS2Go app; or in To securely log into your federal tax quirement and the options availa-
dents of Puerto Rico may be eligi- cash, or by check or money order. account, go to IRS.gov/Account. ble to you.
ble to claim the ACTC if they have Paying electronically is quick, easy, View the amount you owe, review Treasury Inspector General for
one or more qualifying children. and faster than mailing in a check your last 5 years of payment his- Tax Administration. If you want
Foreign-source income. If you or money order. See chapter 1, tory, access online payment op- to confidentially report misconduct,
are a U.S. citizen with income from later. tions, and create or modify an on- waste, fraud, or abuse by an IRS
sources outside the United States Faster ways to file your return. line payment agreement. You can employee, you can call
(foreign income), you must report The IRS offers fast, accurate ways also access your tax records on- 800-366-4484 (call 800-877-8339
all such income on your tax return to file your tax return information line. if you are deaf, hard of hearing, or
unless it is exempt by law or a tax without filing a paper tax return. Health care coverage. If you have a speech disability, and are
treaty. This is true whether you live You can use IRS e-file (electronic need health care coverage, go to using TTY/TDD equipment). You
inside or outside the United States filing). See chapter 1, later. HealthCare.gov to learn about can remain anonymous.
and whether or not you receive a Free electronic filing. You may health insurance options for you Photographs of missing chil-
Form W-2 or Form 1099 from the be able to file your 2023 taxes on- and your family, how to buy health dren. The IRS is a proud partner
foreign payer. This applies to line for free. See chapter 1, later. insurance, and how you might with the National Center for
earned income (such as wages qualify to get financial assistance Missing & Exploited Children®
and tips) as well as unearned in- Change of address. If you to buy health insurance. (NCMEC). Photographs of missing
come (such as interest, dividends, change your address, notify the children selected by the Center
capital gains, pensions, rents, and IRS. See chapter 1, later. Disclosure, Privacy Act, and pa- may appear in this publication on
perwork reduction information.
royalties). Refund on a late-filed return. If The IRS Restructuring and Reform pages that would otherwise be
If you live outside the United you were due a refund but you did Act of 1998, the Privacy Act of blank. You can help bring these
States, you may be able to exclude not file a return, you must generally 1974, and the Paperwork Reduc- children home by looking at the
part or all of your foreign earned in- file your return within 3 years from tion Act of 1980 require that when photographs and calling
come. For details, see Pub. 54. the date the return was due (includ- we ask you for information, we 1-800-THE-LOST
Foreign financial assets. If you ing extensions) to get that refund. must first tell you what our legal (1-800-843-5678) if you recognize
had foreign financial assets in See chapter 1, later. right is to ask for the information, a child.
2023, you may have to file Form Frivolous tax returns. The IRS why we are asking for it, how it will
8938 with your return. See Form has published a list of positions be used, what could happen if we

Introduction
This publication covers the general What is in this publication. This publications are provided for your • Pub. 587, Business Use of
rules for filing a federal income tax publication begins with the rules for information. Your Home.
return. It supplements the informa- filing a tax return. It explains:
tion contained in your tax form in- 1. Who must file a return, Icons. Small graphic symbols, Help from the IRS. There are
structions. It explains the tax law to or icons, are used to draw your at- many ways you can get help from
make sure you pay only the tax you 2. When the return is due, tention to special information. See the IRS. These are explained un-
owe and no more. 3. How to e-file your return, and Table 1 for an explanation of each der How To Get Tax Help at the
icon used in this publication. end of this publication.
How this publication is ar- 4. Other general information. What is not covered in this pub- Comments and suggestions.
ranged. Pub. 17 closely follows
Form 1040, U.S. Individual Income It will help you identify which filing lication. Some material that you We welcome your comments about
Tax Return, and Form 1040-SR, status you qualify for, whether you may find helpful is not included in this publication and suggestions for
U.S. Tax Return for Seniors, and can claim any dependents, and this publication but can be found in future editions.
their three Schedules 1 through 3. whether the income you receive is your tax form instructions booklet. You can send us comments
Pub. 17 is divided into four parts. taxable. The publication goes on to This includes lists of: through IRS.gov/FormComments.
Or, you can write to the Internal
Each part is further divided into explain the standard deduction, the • Where to report certain items Revenue Service, Tax Forms and
chapters, most of which generally kinds of expenses you may be able shown on information docu- Publications, 1111 Constitution
discuss one line of the form or one to deduct, and the various kinds of ments, and Ave. NW, IR-6526, Washington,
line of one of the three schedules. credits you may be able to take to DC 20224.
The introduction at the beginning reduce your tax. • Tax Topics you can read at
of each part lists the schedule(s) Throughout this publication are IRS.gov/TaxTopics. Although we can’t respond indi-
vidually to each comment received,
discussed in that part. examples showing how the tax law If you operate your own busi- we do appreciate your feedback
The table of contents inside the applies in typical situations. Also ness or have other self-employ- and will consider your comments
front cover, the introduction to each throughout this publication are ment income, such as from baby- and suggestions as we revise our
part, and the index in the back of flowcharts and tables that present sitting or selling crafts, see the tax forms, instructions, and publi-
the publication are useful tools to tax information in an easy-to-un- following publications for more in- cations. Don’t send tax questions,
help you find the information you derstand manner. formation. tax returns, or payments to the
need. Many of the subjects discussed • Pub. 334, Tax Guide for Small above address.
in this publication are discussed in Business.
greater detail in other IRS publica- Getting answers to your tax
tions. References to those other • Pub. 225, Farmer's Tax Guide. questions. If you have a tax

Publication 17 (2023) 3

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question not answered by this pub- Getting tax forms, instruc- IRS.gov/OrderForms to order cur- forms and publications faster on-
lication or the How To Get Tax Help tions, and publications. Go to rent forms, instructions, and publi- line.
section at the end of this publica- IRS.gov/Forms to download cur- cations; call 800-829-3676 to order
tion, go to the IRS Interactive Tax rent and prior-year forms, instruc- prior-year forms and instructions. IRS mission. Provide America's
Assistant page at IRS.gov/Help/ITA tions, and publications. The IRS will process your order for taxpayers top-quality service by
where you can find topics by using forms and publications as soon as helping them understand and meet
the search feature or viewing the Ordering tax forms, instruc- possible. Don’t resubmit requests their tax responsibilities and en-
categories listed. tions, and publications. Go to you’ve already sent us. You can get force the law with integrity and fair-
ness to all.

Publication 17 Changes

Note. This publication does not cover the topics listed in the following table. Please see the primary publication.
Chapter Removed Title of Chapter Primary Source
6 Tip Income Pub. 531, Reporting Tip Income
8 Dividends and Other Distributions Pub. 550, Investment Income and
Expenses
9 Rental Income and Expenses Pub. 527, Residential Rental Property
(Including Rental of Vacation Homes)
10 Retirement Plans, Pensions, and Annuities Pub. 575, Pension and Annuity Income
13 Basis of Property Pub. 551, Basis of Assets
14 Sale of Property Pub. 550
15 Selling Your Home Pub. 523, Selling Your Home
16 Reporting Gains and Losses Pub. 550
18 Alimony Pub. 504, Divorced or Separated
Individuals
19 Education-Related Adjustments Pub. 970, Tax Benefits for Education
20 Other Adjustments to Income Pub. 463, Travel, Gift, and Car Expenses
22 Medical and Dental Expenses Pub. 502, Medical and Dental Expenses
24 Interest Expense Pub. 550
Pub. 936, Home Mortgage Interest
Deduction
25 Charitable Contributions Pub. 561, Determining the Value of
Donated Property
Pub. 526, Charitable Contributions
26 Nonbusiness Casualty and Theft Losses Pub. 547, Casualties, Disasters, and Thefts
29 Tax on Unearned Income of Certain Minor Form 8615, Tax for Certain Children Who
Children Have Unearned Income
30 Child and Dependent Care Credit Pub. 503, Child and Dependent Care
Expenses
31 Credit for the Elderly or the Disabled Pub. 524, Credit for the Elderly or the
Disabled
33 Education Credits Pub. 970, Tax Benefits for Education
34 Earned Income Credit (EIC) Pub. 596, Earned Income Credit (EIC)
35 Premium Tax Credit Pub. 974, Premium Tax Credit (PTC)
36 Other Credits

4 Publication 17 (2023)

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Table 1. Legend of Icons

        Icon          Explanation
                      Items that may cause you particular problems, or an alert about pending legislation that may be enacted after 
        CAUTION!
                      this publication goes to print.
                      An Internet site or an email address.

                      An address you may need.

        RECORDS       Items you should keep in your personal records.

                      Items you may need to figure or a worksheet you may need to complete and keep for your records.

                      An important phone number.

        TIP           Helpful information you may need.

Publication 17 (2023)                                                                                                               5

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Part One.

The four chapters in this part provide basic information on the tax system.
The Income Tax They take you through the first steps of filling out a tax return. They also
provide information about dependents, and discuss recordkeeping
Return requirements, IRS e-file (electronic filing), certain penalties, and the two
methods used to pay tax during the year: withholding and estimated tax.
The Form 1040 and Form 1040-SR schedules that are discussed in these
chapters are:
• Schedule 1, Additional Income and Adjustments to Income; and
• Schedule 3 (Part II), Other Payments and Refundable Credits.

• See payment plan details or apply for a Service in combat zone. You are allowed ex-
new payment plan. tra time to take care of your tax matters if you
1. • Make a payment, view 5 years of payment are a member of the Armed Forces who served
history and any pending or scheduled pay- in a combat zone, or if you served in a combat
ments. zone in support of the Armed Forces. See Indi-
viduals Serving in Combat Zone, later, under
• Access your tax records, including key When Do I Have To File.
Filing data from your most recent tax return, your
economic impact payment amounts, and Adoption taxpayer identification number. If
Information transcripts. a child has been placed in your home for purpo-
ses of legal adoption and you won't be able to
• View digital copies of select notices from get a social security number for the child in time
the IRS. to file your return, you may be able to get an
What's New • Approve or reject authorization requests adoption taxpayer identification number (ATIN).
from tax professionals. For more information, see Social Security Num-
ber (SSN), later.
Due date of return. File Form 1040 or • View your address on file or manage your
1040-SR by April 15, 2024. If you live in Maine communication preferences. Taxpayer identification number for aliens. If
or Massachusetts, you have until April 17, 2024, Go to IRS.gov/SecureAccess to view the you or your dependent is a nonresident or resi-
because of the Patriots’ Day and Emancipation • dent alien who doesn't have and isn't eligible to
required identity authentication process.
Day holidays. get a social security number, file Form W-7, Ap-
Change of address. If you change your ad- plication for IRS Individual Taxpayer Identifica-
New lines on Schedule 3. This year Schedule dress, you should notify the IRS. You can use tion Number, with the IRS. For more informa-
3 has new lines. Form 8822 to notify the IRS of the change. See tion, see Social Security Number (SSN), later.
• Line 5a will be used to report the residen- Change of Address, later, under What Happens
tial clean energy credit from Form 5695. After I File. Individual taxpayer identification number
(ITIN) renewal. Some ITINs must be renewed.
• Line 5b will be used to report the energy Enter your social security number. You must If you haven't used your ITIN on a U.S. tax re-
efficient home improvement credit from enter your social security number (SSN) in the turn at least once for tax years 2020, 2021, or
Form 5695. spaces provided on your tax return. If you file a 2022, it has expired and must be renewed if you
• Line 6m will be used to report the credit for joint return, enter the SSNs in the same order need to file a U.S. federal tax return. You don't
previously owned clean vehicles from Form as the names. need to renew your ITIN if you don't need to file
8936. Direct deposit of refund. Instead of getting a a federal tax return. You can find more informa-
• Line 13c will be used to report the elective paper check, you may be able to have your re- tion at IRS.gov/ITIN.
payment election amount from Form 3800. fund deposited directly into your account at a ITINs assigned before 2013 have ex-
bank or other financial institution. See Direct TIP pired and must be renewed if you need
Who must file. Generally, the amount of in- Deposit under Refunds, later. If you choose di- to file a tax return. If you previously
come you can receive before you must file a re- rect deposit of your refund, you may be able to submitted a renewal application and it was ap-
turn has been increased. See Table 1-1 Ta-, split the refund among two or three accounts. proved, you do not need to renew again unless
ble 1-2, and Table 1-3 for the specific amounts. Pay online or by phone. If you owe additional you haven't used your ITIN on a federal tax re-
tax, you may be able to pay online or by phone. turn at least once for tax years 2020, 2021, or
See How To Pay, later. 2022.
Reminders
Installment agreement. If you can’t pay the Frivolous tax submissions. The IRS has
File online. Rather than filing a return on pa- full amount due with your return, you may ask to published a list of positions that are identified as
per, you may be able to file electronically using make monthly installment payments. See In- frivolous. The penalty for filing a frivolous tax re-
IRS e-file. For more information, see Why stallment Agreement, later, under Amount You turn is $5,000. Also, the $5,000 penalty will ap-
Should I File Electronically, later. Owe. You may be able to apply online for a pay- ply to other specified frivolous submissions. For
ment agreement if you owe federal tax, interest, more information, see Civil Penalties, later.
Access your online account (individual tax- and penalties.
payers only). Go to IRS.gov/Account to se-
curely access information about your federal tax Automatic 6-month extension. You can get
account. an automatic 6-month extension to file your tax Introduction
return if, no later than the date your return is
• View the amount you owe and a break- due, you file Form 4868. See Automatic This chapter discusses the following topics.
down by tax year. Extension, later. • Whether you have to file a return.
6 Chapter 1 Filing Information Publication 17 (2023)

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• How to file electronically.                         Table 1-1. 2023 Filing Requirements for Most Taxpayers
• How to file for free.
• When, how, and where to file your return.                                                                                     THEN file a return if 
                                                                                    AND at the end of 2023 you                  your gross income 
• What happens if you pay too little or too           IF your filing status is...   were...*                                    was at least...**
  much tax.
• What records you should keep and how                Single                        under 65                                         $13,850
  long you should keep them.                                                        65 or older                                      $15,700
• How you can change a return you have al-            Married filing jointly***     under 65 (both spouses)                          $27,700
  ready filed.
                                                                                    65 or older (one spouse)                         $29,200
Do I Have To                                                                        65 or older (both spouses)                       $30,700
File a Return?                                        Married filing separately     any age                                                         $5 
                                                      Head of household             under 65                                         $20,800
You must file a federal income tax return if you 
are a citizen or resident of the United States or                                   65 or older                                      $22,650
a resident of Puerto Rico and you meet the filing     Qualifying surviving spouse   under 65                                         $27,700
requirements for any of the following categories 
that apply to you.                                                                  65 or older                                      $29,200
1. Individuals in general. (There are special 
  rules for individuals whose spouse has              *   If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse 
  died, executors, administrators, legal rep-             died in 2023 or if you are preparing a return for someone who died in 2023, see Pub. 501.)
  resentatives, U.S. citizens and residents           **  Gross income means all income you received in the form of money, goods, property, and services that 
  living outside the United States, residents             isn't exempt from tax, including any income from sources outside the United States or from the sale of 
  of Puerto Rico, and individuals with in-                your main home (even if you can exclude part or all of it). Don't include any social security benefits unless 
  come from U.S. territories.)                            (a) you are married filing a separate return and you lived with your spouse at any time during 2023, or (b) 
                                                          one-half of your social security benefits plus your other gross income and any tax-exempt interest is more 
2. Dependents.                                            than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the Instructions for Form 1040 or 
3. Certain children under age 19 or full-time             Pub. 915 to figure the taxable part of social security benefits you must include in gross income. Gross 
  students.                                               income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a 
                                                          business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring 
4. Self-employed persons.                                 gross income, don't reduce your income by any losses, including any loss on Schedule C, line 7, or 
                                                          Schedule F, line 9.
5. Aliens.                                            *** If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross 
The  filing  requirements  for  each  category  are       income was at least $5, you must file a return regardless of your age.
explained in this chapter.
                                                      (even if you can exclude all or part of it). Include   Profit  or  Loss  From  Business;  and  line  9  of 
The  filing  requirements  apply  even  if  you       part of your social security benefits if:              Schedule  F  (Form  1040),  Profit  or  Loss  From 
don't owe tax.                                                                                               Farming. See       Self-Employed Persons, later, for 
                                                      1. You were married, filing a separate return, 
        Even if you don't have to file a return, it       and you lived with your spouse at any time         more information about your filing requirements.
TIP     may  be  to  your  advantage  to  do  so.         during 2023; or                                            If  you  don't  report  all  of  your  self-em-
        See Who Should File, later.                                                                           !      ployment  income,  your  social  security 
                                                      2. Half of your social security benefits plus 
        File only one federal income tax return           your other gross income and any tax-ex-            CAUTION benefits may be lower when you retire.
                                                          empt interest is more than $25,000 
CAUTION jobs  you  had,  how  many  Forms  W-2                                                               Filing  status.    Your  filing  status  depends  on 
!       for  the  year  regardless  of  how  many         ($32,000 if married filing jointly).               whether you are single or married and on your 
you  received,  or  how  many  states  you  lived  in If either (1) or (2) applies, see the Instructions     family situation. Your filing status is determined 
during the year. Don't file more than one original    for  Form 1040 or Pub. 915  to figure  the  social     on  the  last  day  of  your  tax  year,  which  is  De-
return for the same year, even if you haven’t re-     security  benefits  you  must  include  in  gross  in- cember  31  for  most  taxpayers.  See    chapter  2 
ceived  your  refund  or  haven’t  heard  from  the   come.                                                  for an explanation of each filing status.
IRS since you filed.
                                                        Common types of income are discussed in              Age. If  you  are  65  or  older  at  the  end  of  the 
                                                      Part Two of this publication.                          year, you can generally have a higher amount of 
Individuals—In General                                Community  property  states.  Community                gross  income  than  other  taxpayers  before  you 
                                                      property  states  include  Arizona,  California,       must file. See Table 1-1. You are considered 65 
If you are a U.S. citizen or resident, whether you    Idaho, Louisiana, Nevada, New Mexico, Texas,           on the day before your 65th birthday. For exam-
must file a return depends on three factors.          Washington,  and  Wisconsin.  If  you  and  your       ple, if your 65th birthday is on January 1, 2024, 
1. Your gross income.                                 spouse lived in a community property state, you        you are considered 65 for 2023.
                                                      must usually follow state law to determine what 
2. Your filing status.                                is community property and what is separate in-         Surviving Spouses,
3. Your age.                                          come.  For  details,  see  Form  8958  and  Pub.       Executors, Administrators,
                                                      555.
To  find  out  whether  you  must  file,  see Ta-                                                            and Legal Representatives
ble 1-1 Table 1-2, , and Table 1-3. Even if no ta-    Nevada,  Washington,  and  California  do-             You must file a final return for a decedent (a per-
ble shows that you must file, you may need to         mestic  partners. A  registered  domestic  part-       son who died) if both of the following are true.
file  to  get  money  back.  See Who  Should  File,   ner  in  Nevada,  Washington,  or  California  must      Your spouse died in 2023 or you are the 
later.                                                generally  report  half  the  combined  community      •
                                                      income  of  the  individual  and  their  domestic        executor, administrator, or legal represen-
Gross  income. This  includes  all  income  you       partner. See Pub. 555.                                   tative.
receive  in  the  form  of  money,  goods,  property,                                                        • The decedent met the filing requirements 
and services that isn't exempt from tax. It also      Self-employed  individuals.   If  you  are               at the date of death.
includes income from sources outside the Uni-         self-employed, your gross income includes the 
ted States or from the sale of your main home         amount  on  line  7  of  Schedule  C  (Form  1040), 
Publication 17 (2023)                                       Chapter 1   Filing Information                                                                               7

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  For more information on rules for filing a de-         doesn't pay the tax due on this income, the pa-            Aliens
cedent's final return, see Pub. 559.                     rent is liable for the tax.
                                                                                                                    Your  status  as  an  alien  (resident,  nonresident, 
U.S. Citizens and Resident Aliens                        Certain Children Under                                     or  dual-status)  determines  whether  and  how 
Living Abroad                                                                                                       you must file an income tax return.
                                                         Age 19 or Full-Time 
To determine whether you must file a return, in-                                                                        The rules used to determine your alien sta-
clude in your gross income any income you re-            Students                                                   tus are discussed in Pub. 519.
ceived  abroad,  including  any  income  you  can                                                                   Resident  alien. If  you  are  a  resident  alien  for 
exclude under the foreign earned income exclu-           If a child's only income is interest and dividends 
sion.  For  information  on  special  tax  rules  that   (including capital gain distributions and Alaska           the entire year, you must file a tax return follow-
may apply to you, see Pub. 54. It is available on-       Permanent  Fund  dividends),  the  child  was  un-         ing  the  same  rules  that  apply  to  U.S.  citizens. 
line  and  at  most  U.S.  embassies  and  consu-        der age 19 at the end of 2023 or was a full-time           Use the forms discussed in this publication.
lates. See How To Get Tax Help in the back of            student under age 24 at the end of 2023, and               Nonresident  alien.  If  you  are  a  nonresident 
this publication.                                        certain  other  conditions  are  met,  a  parent  can      alien, the rules and tax forms that apply to you 
                                                         elect  to  include  the  child's  income  on  the  pa-     are  different  from  those  that  apply  to  U.S.  citi-
                                                         rent's  return.  If  this  election  is  made,  the  child zens and resident aliens. See Pub. 519 to find 
Residents of Puerto Rico                                 doesn't have to file a return. See Instructions for        out  if  U.S.  income  tax  laws  apply  to  you  and 
If  you  are  a  U.S.  citizen  and  also  a  bona  fide Form 8814, Parents’ Election To Report Child’s             which forms you should file.
resident of Puerto Rico, you must generally file         Interest and Dividends.
a U.S. income tax return for any year in which                                                                      Dual-status  taxpayer. If  you  are  a  resident 
you  meet  the  income  requirements.  This  is  in                                                                 alien for part of the tax year and a nonresident 
addition to any legal requirement you may have           Self-Employed Persons                                      alien for the rest of the year, you are a dual-sta-
                                                                                                                    tus taxpayer. Different rules apply for each part 
to file an income tax return with Puerto Rico.           You are self-employed if you:                              of the year. For information on dual-status tax-
  If you are a bona fide resident of Puerto Rico                                                                    payers, see Pub. 519. 
for  the  entire  year,  your  U.S.  gross  income       • Carry on a trade or business as a sole pro-
doesn't include income from sources within                 prietor,
Puerto  Rico.  It  does,  however,  include  any  in-    • Are an independent contractor,                           Who Should File
come you received for your services as an em-
ployee of the United States or a U.S. agency. If         • Are a member of a partnership, or                        Even if you don't have to file, you should file a 
you receive income from Puerto Rican sources             • Are in business for yourself in any other                federal income tax return to get money back if 
that  isn't  subject  to  U.S.  tax,  you  must  reduce    way.                                                     any of the following conditions apply.
your  standard  deduction.  As  a  result,  the          Self-employment  can  include  work  in  addi-             1. You had federal income tax withheld or 
amount of income you must have before you are            tion to your regular full-time business activities,            made estimated tax payments. 
required to file a U.S. income tax return is lower       such as certain part-time work you do at home 
than the applicable amount in Table 1-1 or         Ta-   or in addition to your regular job.                        2. You qualify for the earned income credit. 
ble 1-2. For more information, see Pub. 570.                                                                            See Pub. 596 for more information. 
                                                         You must file a return if your gross income is 
                                                         at  least  as  much  as  the  filing  requirement          3. You qualify for the additional child tax 
Individuals With Income From                             amount for your filing status and age (shown in                credit. See chapter 14 for more informa-
U.S. Territories                                         Table  1-1).  Also,  you  must  file  Form  1040  or           tion.
If  you  had  income  from  Guam,  the  Common-          1040-SR  and  Schedule  SE  (Form  1040), 
wealth of the Northern Mariana Islands, Ameri-           Self-Employment Tax, if:                                   4. You qualify for the premium tax credit. See 
                                                                                                                        Pub. 974 for more information.
can  Samoa,  or  the  U.S.  Virgin Islands, special      1. Your net earnings from self-employment 
rules may apply when determining whether you               (excluding church employee income) were                  5. You qualify for the American opportunity 
must file a U.S. federal income tax return. In ad-         $400 or more, or                                             credit. See Pub. 970 for more information.
dition, you may have to file a return with the indi-                                                                6. You qualify for the credit for federal tax on 
vidual  island  government.  See  Pub.  570  for         2. You had church employee income of 
more information.                                          $108.28 or more. (See Table 1-3.)                            fuels. See chapter 13 for more information.
                                                         Use Schedule SE (Form 1040) to figure your 
Dependents                                               self-employment  tax.  Self-employment  tax  is            Form 1040 or 1040-SR
                                                         comparable to the social security and Medicare 
If you are a dependent (one who meets the de-            tax  withheld  from  an  employee's  wages.  For           Use Form 1040 or 1040-SR to file your return. 
pendency tests in chapter 3), see    Table 1-2 to        more information about this tax, see Pub. 334.             (But also see Why Should I File Electronically, 
                                                                                                                    later.)
find out whether you must file a return. You must 
also  file  if  your  situation  is  described  in Ta-   Employees of foreign governments or in-
ble 1-3.                                                 ternational  organizations.   If  you  are  a  U.S.            You  can  use  Form  1040  or  1040-SR  to  re-
                                                         citizen who works in the United States for an in-          port all types of income, deductions, and cred-
Responsibility of parent. Generally, a child is          ternational  organization,  a  foreign  government,        its.
responsible for filing their own tax return and for      or  a  wholly  owned  instrumentality  of  a  foreign 
paying  any  tax  on  the  return.  If  a  dependent     government, and your employer isn't required to            Why Should I File 
child must file an income tax return but can’t file      withhold  social  security  and  Medicare  taxes 
due to age or any other reason, then a parent,           from  your  wages,  you  must  include  your  earn-        Electronically?
guardian,  or  other  legally  responsible  person       ings  from  services  performed  in  the  United 
must file it for the child. If the child can’t sign the  States  when  figuring  your  net  earnings  from 
return,  the  parent  or  guardian  must  sign  the      self-employment.                                           Electronic Filing
child's  name  followed  by  the  words  “By  (your 
signature), parent for minor child.”                     Ministers. You  must  include  income  from                If your adjusted gross income (AGI) is less than 
                                                         services you performed as a minister when fig-             a certain amount, you are eligible for Free File, 
  Child's earnings. Amounts a child earns by             uring  your  net  earnings  from  self-employment,         a free tax software service offered by IRS part-
performing  services  are  included  in  the  child’s    unless  you  have  an  exemption  from  self-em-           ners, to prepare and e-file your return for free. If 
gross income and not the gross income of the             ployment tax. This also applies to Christian Sci-          your income is over the amount, you are still eli-
parent. This is true even if under local law the         ence  practitioners  and  members  of  a  religious        gible for Free File Fillable Forms, an electronic 
child's parent has the right to the earnings and         order who have not taken a vow of poverty. For             version of IRS paper forms. Table 1-4 lists the 
may actually have received them. But if the child        more information, see Pub. 517.                            free ways to electronically file your return.
8                                                          Chapter 1      Filing Information                                               Publication 17 (2023)

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Table 1-2. 2023 Filing Requirements for Dependents                                                                 each need to create a PIN and enter these PINs 
                                                                                                                   as your electronic signatures.
           See chapter 3 to find out if someone can claim you as a dependent.                                      A  PIN  is  any  combination  of  five  digits  you 
                                                                                                                   choose except five zeros. If you use a PIN, there 
If your parents (or someone else) can claim you as a dependent, use this table to see if you                       is nothing to sign and nothing to mail—not even 
must file a return. (See Table 1-3 for other situations when you must file.)                                       your Forms W-2.
In this table, unearned income includes taxable interest, ordinary dividends, and capital gain                     Your  electronic  return  is  considered  a  valid 
distributions. It also includes unemployment compensation, taxable social security benefits,                       signed  return  only  when  it  includes  your  PIN; 
pensions, annuities, and distributions of unearned income from a trust. Earned income includes                     last  name;  date  of  birth;  IP  PIN,  if  applicable; 
salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. (See                      and  AGI  from  your  originally  filed  2022  federal 
Scholarships and fellowships in chapter 8.) Gross income is the total of your earned and                           income  tax  return,  if  applicable.  If  you're  filing 
unearned income.                                                                                                   jointly, your electronic return must also include 
                                                                                                                   your spouse's PIN; last name; date of birth; IP 
Single dependents—Were you either age 65 or older or blind?                                                        PIN, if applicable; and AGI, if applicable, in or-
      No.  You must file a return if any of the following apply.                                                   der  to  be  considered  validly  signed.  Don't  use 
           • Your unearned income was more than $1,250.                                                            AGI from an amended return (Form 1040-X) or 
                                                                                                                   a math error correction made by the IRS. AGI is 
           • Your earned income was more than $13,850.                                                             the amount shown on your 2022 Form 1040 or 
           • Your gross income was more than the larger of:                                                        Form  1040-SR,  line  11.  If  you  don't  have  your 
           • $1,250 or                                                                                             2022 income tax return, you can request a tran-
           • Your earned income (up to $13,450) plus $400.                                                         script by using our automated self-service tool. 
                                                                                                                   Go to IRS.gov/Transcript. (If you filed electroni-
      Yes. You must file a return if any of the following apply.                                                   cally  last  year,  you,  and  your  spouse  if  filing 
           • Your unearned income was more than $3,100 ($4,950 if 65 or older and blind).                          jointly, may use your prior year PIN to verify your 
           • Your earned income was more than $15,700 ($17,550 if 65 or older and blind).                          identity instead of your prior year AGI. The prior 
           • Your gross income was more than the larger of:                                                        year PIN is the five-digit PIN you used to elec-
           • $3,100 ($4,950 if 65 or older and blind), or                                                          tronically sign your 2022 return.) You will also be 
                                                                                                                   prompted to enter your date of birth.
           • Your earned income (up to $13,450) plus $2,250 ($4,100 if 65 or older and 
           blind).                                                                                                         You  can’t  use  the  Self-Select  PIN 
Married dependents—Were you either age 65 or older or blind?                                                       !       method if you are a first-time filer under 
                                                                                                                   CAUTION age 16 at the end of 2023.
      No.  You must file a return if any of the following apply.
                                                                                                                   Practitioner PIN. The Practitioner PIN method 
           • Your unearned income was more than $1,250.                                                            allows  you  to  authorize  your  tax  practitioner  to 
           • Your earned income was more than $13,850.                                                             enter or generate your PIN. Your electronic re-
           • Your gross income was at least $5 and your spouse files a separate return and                         turn  is  considered  a  validly  signed  return  only 
           itemizes deductions.                                                                                    when  it  includes  your  PIN;  last  name;  date  of 
           • Your gross income was more than the larger of:                                                        birth;  and  IP  PIN,  if  applicable.  If  you’re  filing 
           • $1,250, or                                                                                            jointly, your electronic return must also include 
                                                                                                                   your spouse’s PIN; last name; date of birth; and 
           • Your earned income (up to $13,450) plus $400.                                                         IP PIN, if applicable, in order to be considered a 
      Yes. You must file a return if any of the following apply.                                                   validly  signed  return.  The  practitioner  can  pro-
           • Your unearned income was more than $2,750 ($4,250 if 65 or older and blind).                          vide you with details.
           • Your earned income was more than $15,350 ($16,850 if 65 or older and blind).                          Form  8453.   You  must  send  in  a  paper  Form 
           • Your gross income was at least $5 and your spouse files a separate return and                         8453 if you have to attach certain forms or other 
           itemizes deductions.                                                                                    documents that can’t be electronically filed. For 
                                                                                                                   details,  see  Form  8453.  For  more  details,  visit 
           • Your gross income was more than the larger of:                                                        IRS.gov/efile.
           • $2,750 ($4,250 if 65 or older and blind), or
           • Your earned income (up to $13,450) plus $1,900 ($3,400 if 65 or older and                             Identity  Protection  PIN. If  the  IRS  gave  you 
           blind).                                                                                                 an  identity  protection  personal  identification 
                                                                                                                   number (IP PIN), enter it in the spaces provided 
                 IRS     e-file  uses  automa-          return electronically using a personal identifica-         on your tax form. If the IRS hasn’t given you this 
                 tion to replace most of the            tion  number  (PIN).  If  you  are  filing  online,  you   type of number, leave these spaces blank. For 
manual steps needed to process paper returns.           must use a Self-Select PIN. For 2023, if we is-            more information, see the Instructions for Form 
As  a  result,  the  processing  of e-file  returns  is sued you an identity protection personal identifi-         1040.
faster and more accurate than the processing of         cation  number  (IP  PIN)  (as  described  in  more                All taxpayers are now eligible for an IP 
paper returns. However, as with a paper return,         detail below), all six digits of your IP PIN must          TIP     PIN.  For  more  information,  see  Pub. 
you are responsible for making sure your return         appear  in  the  IP  PIN  spaces  provided  next  to               5477.  To  apply  for  an  IP  PIN,  go  to 
contains  accurate  information  and  is  filed  on     the  space  for  your  occupation  for  your  elec-        IRS.gov/IPPIN and use the Get an IP PIN tool.
time.                                                   tronic  signature  to  be  complete.  Failure  to  in-
                                                        clude an issued IP PIN on the electronic return            Power of attorney.    If an agent is signing your 
If your return is filed with IRS e-file, you will re-   will result in an invalid signature and a rejected         return for you, a power of attorney (POA) must 
ceive an acknowledgment that your return was            return.  If  you  are  filing  a  joint  return  and  both be filed. Attach the POA to Form 8453 and file it 
received and accepted. If you owe tax, you can          taxpayers were issued an IP PIN, enter both IP             using  that  form's  instructions.  See Signatures, 
e-file  and  pay  electronically.  The  IRS  has  pro-  PINs  in  the  spaces  provided.  If  you  are  filing     later, for more information on POAs.
cessed  more  than  one  billion    e-filed  returns    electronically  using  a  tax  practitioner,  you  can     State  returns. In  most  states,  you  can  file  an 
safely  and  securely.  Using e-file  doesn't  affect   use a Self-Select PIN or a Practitioner PIN.               electronic state return simultaneously with your 
your chances of an IRS examination of your re-          Self-Select  PIN. The  Self-Select  PIN  method            federal return. For more information, check with 
turn.                                                   allows  you  to  create  your  own  PIN.  If  you  are     your local IRS office, state tax agency, tax pro-
Requirements  for  an  electronic  return. To           married  filing  jointly,  you  and  your  spouse  will    fessional, or the IRS website at IRS.gov/efile.
file your return electronically, you must sign the 

Publication 17 (2023)                                   Chapter 1         Filing Information                                                                      9

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Table 1-3. Other Situations When You Must File a 2023 Return

You must file a return if any of the following apply for 2023.
1. You owe any special taxes, including any of the following (see the instructions for Schedule 2 (Form 1040)).
a. Alternative minimum tax.
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.
c. Household employment taxes.
d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who
didn't withhold these taxes.
e. Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance
and additional taxes on health savings accounts.
f. Recapture taxes.
2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.
3. You had net earnings from self-employment of at least $400.
4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer
social security and Medicare taxes.
5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage
through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the
advance payments.
6. You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you are
paying in installments under section 965(h) or deferred by making an election under section 965(i).

Refunds. You can have a refund check mailed Table 1-4. Free Ways To e-file
to you, or you can have your refund deposited
directly to your checking or savings account or Use Free File for free tax software and free e-file.
split among two or three accounts. With e-file,
your refund will be issued faster than if you filed • IRS partners offer name-brand products for free.
on paper. • Many taxpayers are eligible for Free File software.
You may not get all of your refund if you owe
certain past-due amounts, such as federal tax, • Everyone is eligible for Free File Fillable Forms, an electronic version of IRS paper forms.
state income tax, state unemployment compen- • Free File software and Free File Fillable Forms are available only at IRS.gov/FreeFile.
sation debts, child support, spousal support, or
certain other federal nontax debts, such as stu- Use VITA/TCE for free tax help from volunteers and free e-file.
dent loans. See Offset against debts under Re- • Volunteers prepare your return and e-file it for free.
funds, later.
• Some sites also offer do-it-yourself software.
Refund inquiries. Information about your re-
turn will generally be available within 24 hours • You are eligible based either on your income or age.
after the IRS receives your e-filed return. See • Sites are located nationwide. Find one near you by visiting IRS.gov/VITA.
Refund Information, later.
Amount you owe. To avoid late-payment pen-
alties and interest, pay your taxes in full by April for a fee. Ask your employer or financial institu- prepare and e-file your federal tax return
15, 2024 (for most people). See How To Pay, tion if they offer IRS e-file as an employee, for free.
later, for information on how to pay the amount member, or customer benefit. • VITA. Go to IRS.gov/VITA, download the
you owe. free IRS2Go app, or call 800-906-9887 to
Free Help With Your Return find the nearest VITA location for free tax
Using Your Personal Computer The Volunteer Income Tax Assistance (VITA) return preparation.
program offers free tax help to people who gen- • TCE. Go to IRS.gov/TCE, download the
You can file your tax return in a fast, erally make $64,000 or less, persons with disa- free IRS2Go app, or call 888-227-7669 to
easy, and convenient way using your bilities, and limited-English-speaking taxpayers find the nearest TCE location for free tax
personal computer. A computer with In- who need help preparing their own tax returns. return preparation.
ternet access and tax preparation software are The Tax Counseling for the Elderly (TCE) pro-
all you need. Best of all, you can e-file from the gram offers free tax help for all taxpayers, par-
comfort of your home 24 hours a day, 7 days a ticularly those who are 60 years of age and Using a Tax Professional
week. older. TCE volunteers specialize in answering Many tax professionals electronically file tax re-
IRS-approved tax preparation software is questions about pensions and retirement-rela- turns for their clients. You may personally enter
available online and in retail stores. For informa- ted issues unique to seniors. your PIN or complete Form 8879, IRS e-file Sig-
tion, visit IRS.gov/efile. You can go to IRS.gov to see your options nature Authorization, to authorize the tax profes-
for preparing and filing your return, which in- sional to enter your PIN on your return.
Through Employers and Financial clude the following.
Note. Tax professionals may charge a fee
Institutions • Free File. Go to IRS.gov/FreeFile. See if for IRS e-file. Fees can vary depending on the
Some businesses offer free e-file to their em- you qualify to use brand-name software to professional and the specific services rendered.
ployees, members, or customers. Others offer it

10 Chapter 1 Filing Information Publication 17 (2023)

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                                                         Table 1-5.    When To File Your 2023 Return
When Do I                                                              For U.S. citizens and residents who file returns on a calendar year 
Have To File?                                                          basis.
April  15,  2024,  is  the  due  date  for  filing  your                                                                                For Certain Taxpayers 
2023 income tax return if you use the calendar                                                                                               Outside
year. If you live in Maine or Massachusetts, you                                                   For Most Taxpayers                    the United States
have until April 17, 2024, because of the Patri-
ots’ Day and Emancipation Day holidays. For a            No extension requested                       April 15, 2024                     June 17, 2024
quick view of due dates for filing a return with or      Automatic extension                       October 15, 2024                     October 15, 2024
without  an  extension  of  time  to  file  (discussed 
later), see Table 1-5.                                   ticipant in the IRS e-file program that transmits                  If you don't pay the tax due by the regu-
                                                         electronic  tax  return  information  directly  to  the            lar due date (April 15 for most taxpay-
If you use a fiscal year (a year ending on the           IRS.                                                      CAUTION! ers),  you  will  owe  interest.  You  may 
last  day  of  any  month  except  December,  or  a                                                                also be charged penalties, discussed later.
52-53-week year), your income tax return is due           The electronic postmark is a record of when 
by the 15th day of the 4th month after the close         the  authorized  electronic  return  transmitter  re-
of your fiscal year.                                     ceived  the  transmission  of  your  electronically       How  to  get  the  automatic  extension.      You 
                                                         filed  return  on  its  host  system.  The  date  and     can get the automatic extension by:
When the due date for doing any act for tax              time  in  your  time  zone  controls  whether  your       1. Using IRS e-file (electronic filing), or
purposes—filing  a  return,  paying  taxes,              electronically filed return is timely.
                                                                                                                   2. Filing a paper form.
etc.—falls on a Saturday, Sunday, or legal holi-         Filing  late. If  you  don't  file  your  return  by  the 
day, the due date is delayed until the next busi-        due  date,  you  may  have  to  pay  a  failure-to-file   E-file  options. There  are  two  ways  you  can 
ness day.                                                penalty and interest. For more information, see           use e-file  to  get  an  extension  of  time  to  file. 
Filing paper returns on time. Your paper re-             Penalties, later. Also see Interest under Amount          Complete Form 4868 to use as a worksheet. If 
turn is filed on time if it is mailed in an envelope     You Owe, later.                                           you  think  you  may  owe  tax  when  you  file  your 
that  is  properly  addressed,  has  enough  post-        If you were due a refund but you didn't file a           return,  use Part  II  of  the  form  to  estimate  your 
age, and is postmarked by the due date. If you           return,  you  must  generally  file  within  3  years     balance due. If you e-file Form 4868 to the IRS, 
send your return by registered mail, the date of         from the date the return was due (including ex-           don't send a paper Form 4868.
the registration is the postmark date. The regis-        tensions) to get that refund.
                                                                                                                   E-file using your personal computer or a 
tration is evidence that the return was delivered.       Nonresident  alien. If  you  are  a  nonresident          tax professional.    You can use a tax software 
If you send a return by certified mail and have          alien  and  earn  wages  subject  to  U.S.  income        package  with  your  personal  computer  or  a  tax 
your receipt postmarked by a postal employee,            tax withholding, your 2023 U.S. income tax re-            professional  to  file  Form  4868  electronically. 
the  date  on  the  receipt  is  the  postmark  date.    turn (Form 1040-NR) is due by:                            Free  File  and  Free  File  Fillable  Forms,  both 
The  postmarked  certified  mail  receipt  is  evi-
dence that the return was delivered.                     •     April 15, 2024, if you use a calendar year;         available  at  IRS.gov,  allow  you  to  prepare  and 
                                                               or                                                  e-file Form 4868 for free. You will need to pro-
Private delivery services.  If you choose to                                                                       vide certain information from your 2022 tax re-
mail your return, you can use certain private de-        •     The 15th day of the 4th month after the end         turn.  If  you  wish  to  make  a  payment  by  direct 
livery  services  designated  by  the  IRS  to  meet           of your fiscal year, if you use a fiscal year.      transfer from your bank account, see Pay online 
the  “timely  mailing  treated  as  timely  filing/       If  you  don't  earn  wages  subject  to  U.S.  in-      under How To Pay, later, in this chapter.
paying”  rule  for  tax  returns  and  payments.         come tax withholding, your return is due by:              E-file  and  pay  by  credit  or  debit  card  or 
These private delivery services include only the 
following.                                               •     June 17, 2024, if you use a calendar year;          by direct transfer from your bank account. 
                                                               or                                                  You can get an extension by paying part or all of 
•   UPS Next Day Air Early A.M., UPS Next                                                                          your  estimate  of  tax  due  by  using  a  credit  or 
    Day Air, UPS Next Day Air Saver, UPS 2nd             •     The 15th day of the 6th month after the end 
    Day Air, UPS 2nd Day Air A.M., UPS                         of your fiscal year, if you use a fiscal year.      debit card or by direct transfer from your bank 
                                                                                                                   account. You can do this by phone or over the 
    Worldwide Express Plus, and UPS World-               See Pub. 519 for more filing information.                 Internet. You don't file Form 4868. See  Pay on-
    wide Express.                                        Filing  for  a  decedent.  If  you  must  file  a  final  line under How To Pay, later, in this chapter.
•   FedEx First Overnight, FedEx Priority                income tax return for a taxpayer who died dur-            Filing a paper Form 4868. You can get an ex-
    Overnight, FedEx Standard Overnight, Fe-             ing the year (a decedent), the return is due by           tension  of  time  to  file  by  filing  a  paper  Form 
    dEx 2 Day, FedEx International Next Flight           the 15th day of the 4th month after the end of            4868. If you are a fiscal year taxpayer, you must 
    Out, FedEx International Priority, FedEx In-         the decedent's normal tax year. See Pub. 559.             file  a  paper  Form  4868.  Mail  it  to  the  address 
    ternational First, and FedEx International                                                                     shown in the form instructions.
    Economy.                                                                                                       If you want to make a payment with the form, 
                                                         Extensions of Time To File
•   DHL Express 9:00, DHL Express 10:30,                                                                           make  your  check  or  money  order  payable  to 
    DHL Express 12:00, DHL Express World-                You may be able to get an extension of time to            “United States Treasury.” Write your SSN, day-
    wide, DHL Express Envelope, DHL Import               file your return. There are three types of situa-         time phone number, and “2023 Form 4868” on 
    Express 10:30, DHL Import Express 12:00,             tions where you may qualify for an extension.             your check or money order.
                                                         •
    and DHL Import Express Worldwide.                          Automatic extensions.                               When to file. You must request the automatic 
To check for any updates to the list of desig-                 You are outside the United States.                  extension  by  the  due  date  for  your  return.  You 
nated  private  delivery  services,  go  to IRS.gov/     •
                                                                                                                   can file your return any time before the 6-month 
PDS.  For  the  IRS  mailing  addresses  to  use  if     •     You are serving in a combat zone.                   extension period ends.
you’re  using  a  private  delivery  service,  go  to 
                                                                                                                   When  you  file  your  return. Enter  any  pay-
IRS.gov/PDSStreetAddresses.                              Automatic Extension                                       ment you made related to the extension of time 
The private delivery service can tell you how 
to get written proof of the mailing date.                If you can’t file your 2023 return by the due date,       to file on Schedule 3 (Form 1040), line 10.
                                                         you  may  be  able  to  get  an  automatic  6-month 
Filing electronic returns on time.   If you use          extension of time to file.                                Individuals Outside the
IRS e-file, your return is considered filed on time 
if  the  authorized  electronic  return  transmitter      Example.     If your return is due on April 15,          United States
postmarks the transmission by the due date. An           2024,  you  will  have  until  October  15,  2024,  to    You  are  allowed  an  automatic  2-month  exten-
authorized electronic return transmitter is a par-       file.                                                     sion,  without  filing  Form  4868  (until  June  17, 
Publication 17 (2023)                                             Chapter 1  Filing Information                                                                  11

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2024, if you use the calendar year), to file your 1. The Arabian peninsula area, effective Jan-
2023 return and pay any federal income tax due uary 17, 1991. Table 1-6. Six Steps for Preparing
if: 2. The Kosovo area, effective March 24, Your Paper Return
1. You are a U.S. citizen or resident; and 1999.
1 — Get your records together for income
2. On the due date of your return: 3. The Afghanistan area, effective Septem- and expenses.
a. You are living outside the United ber 19, 2001.
2 — Get the forms, schedules, and
States and Puerto Rico, and your See Pub. 3 for more detailed information on publications you need.
main place of business or post of duty the locations comprising each combat zone.
is outside the United States and Pu- Pub. 3 also has information about other tax ben- 3 — Fill in your return.
erto Rico; or efits available to military personnel serving in a 4 — Check your return to make sure it is
b. You are in military or naval service on combat zone. correct.
duty outside the United States and Extension period. The deadline for filing your 5 — Sign and date your return.
Puerto Rico. return, paying any tax due, filing a claim for re-
However, if you pay the tax due after the reg- fund, and taking other actions with the IRS is 6 — Attach all required forms and
ular due date (April 15 for most taxpayers), in- extended in two steps. First, your deadline is schedules.
terest will be charged from that date until the extended for 180 days after the later of:
date the tax is paid. 1. The last day you are in a combat zone or Electronic returns. For information you may
If you served in a combat zone or qualified the last day the area qualifies as a combat find useful in preparing an electronic return, see
hazardous duty area, you may be eligible for a zone, or Why Should I File Electronically, earlier.
longer extension of time to file. See Individuals 2. The last day of any continuous qualified Substitute tax forms. You can’t use your own
Serving in Combat Zone, later, for special rules hospitalization (defined later) for injury version of a tax form unless it meets the require-
that apply to you. from service in the combat zone. ments explained in Pub. 1167.
Married taxpayers. If you file a joint return, Form W-2. If you were an employee, you
only one spouse has to qualify for this automatic Second, in addition to the 180 days, your
extension. If you and your spouse file separate deadline is also extended by the number of should receive Form W-2 from your employer.
returns, the automatic extension applies only to days you had left to take action with the IRS You will need the information from this form to
the spouse who qualifies. when you entered the combat zone. For exam- prepare your return. See Form W-2 under Credit
ple, you have 3 / months (January 1–April 15) 1 2 for Withholding and Estimated Tax for 2023 in
How to get the extension. To use this auto- to file your tax return. Any days left in this period chapter 4.
matic extension, you must attach a statement to when you entered the combat zone (or the en- Your employer is required to provide or send
your return explaining what situation qualified tire 3 / months if you entered it before the be-1 2 Form W-2 to you no later than January 31,
you for the extension. (See the situations listed ginning of the year) are added to the 180 days. 2024. If it is mailed, you should allow adequate
under (2), earlier.) See Extension of Deadlines in Pub. 3 for more time to receive it before contacting your em-
information. ployer. If you still don't get the form by early
Extensions beyond 2 months. If you can’t file February, the IRS can help you by requesting
your return within the automatic 2-month exten- The rules on the extension for filing your re-
sion period, you may be able to get an addi- turn also apply when you are deployed outside the form from your employer. When you request
tional 4-month extension, for a total of 6 the United States (away from your permanent IRS help, be prepared to provide the following
months. File Form 4868 and check the box on duty station) while participating in a designated information.
line 8. contingency operation. • Your name, address (including ZIP code),
and phone number.
No further extension. An extension of more Qualified hospitalization. The hospitalization
than 6 months will generally not be granted. must be the result of an injury received while • Your SSN.
However, if you are outside the United States serving in a combat zone or a contingency op- • Your dates of employment.
and meet certain tests, you may be granted a eration. Qualified hospitalization means:
• Your employer's name, address (including
longer extension. For more information, see • Any hospitalization outside the United ZIP code), and phone number.
When To File and Pay in Pub. 54. States, and
Form 1099. If you received certain types of in-
• Up to 5 years of hospitalization in the Uni- come, you may receive a Form 1099. For exam-
Individuals Serving in ted States. ple, if you received taxable interest of $10 or
Combat Zone See Pub. 3 for more information on qualified more, the payer is required to provide or send
The deadline for filing your tax return, paying hospitalizations. Form 1099 to you no later than January 31,
any tax you may owe, and filing a claim for re- 2024 (or by February 15, 2024, if furnished by a
fund is automatically extended if you serve in a broker). If it is mailed, you should allow ade-
combat zone. This applies to members of the How Do I Prepare quate time to receive it before contacting the
Armed Forces, as well as merchant marines My Return? payer. If you still don't get the form by February
serving aboard vessels under the operational 15 (or by March 1, 2024, if furnished by a
control of the Department of Defense, Red This section explains how to get ready to fill in broker), call the IRS for help.
Cross personnel, accredited correspondents, your tax return and when to report your income
and civilians under the direction of the Armed and expenses. It also explains how to complete
Forces in support of the Armed Forces. certain sections of the form. You may find Ta- When Do I Report My
Combat zone. A combat zone is any area the ble 1-6 helpful when you prepare your paper re- Income and Expenses?
President of the United States designates by turn.
You must figure your taxable income on the ba-
executive order as an area in which the U.S. sis of a tax year. A “tax year” is an annual ac-
Armed Forces are engaging or have engaged in counting period used for keeping records and
combat. An area usually becomes a combat reporting income and expenses. You must ac-
zone and ceases to be a combat zone on the count for your income and expenses in a way
dates the President designates by executive or- that clearly shows your taxable income. The
der. For purposes of the automatic extension, way you do this is called an accounting method.
the term “combat zone” includes the following This section explains which accounting periods
areas. and methods you can use.

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Accounting Periods of the tax year is constructively received by you using an ITIN, stop using your ITIN. Use your
Most individual tax returns cover a calendar in that year. A check that was “made available SSN instead.
year—the 12 months from January 1 through to you” includes a check you have already re- Check that both the name and SSN on your
December 31. If you don't use a calendar year, ceived, but not cashed or deposited. It also in- Form 1040 or 1040-SR, W-2, and 1099 agree
your accounting period is a fiscal year. A regular cludes, for example, your last paycheck of the with your social security card. If they don't, cer-
fiscal year is a 12-month period that ends on the year that your employer made available for you tain deductions and credits on your Form 1040
last day of any month except December. A to pick up at the office before the end of the or 1040-SR may be reduced or disallowed and
52-53-week fiscal year varies from 52 to 53 year. It is constructively received by you in that you may not receive credit for your social secur-
weeks and always ends on the same day of the year whether or not you pick it up before the end ity earnings. If your Form W-2 shows an incor-
week. of the year or wait to receive it by mail after the rect SSN or name, notify your employer or the
end of the year.
You choose your accounting period (tax form-issuing agent as soon as possible to make
sure your earnings are credited to your social
year) when you file your first income tax return. No constructive receipt. There may be security record. If the name or SSN on your so-
It can’t be longer than 12 months. facts to show that you didn't constructively re- cial security card is incorrect, call the Social Se-
More information. For more information on ceive income. curity Administration (SSA) at 800-772-1213.
accounting periods, including how to change
your accounting period, see Pub. 538. Example. Lennon, a teacher, agreed to the Name change. If you changed your name be-
school board's condition that, in Lennon’s ab- cause of marriage, divorce, etc., be sure to re-
sence, Lennon would receive only the differ- port the change to your local SSA office before
Accounting Methods ence between Lennon’s regular salary and the filing your return. This prevents delays in pro-
Your accounting method is the way you account salary of a substitute teacher hired by the cessing your return and issuing refunds. It also
for your income and expenses. Most taxpayers school board. Therefore, Lennon didn't con- safeguards your future social security benefits.
use either the cash method or an accrual structively receive the amount by which Len- Dependent's SSN. You must provide the SSN
method. You choose a method when you file non’s salary was reduced to pay the substitute of each dependent you claim, regardless of the
your first income tax return. If you want to teacher. dependent's age. This requirement applies to all
change your accounting method after that, you dependents (not just your children) claimed on
must generally get IRS approval. Use Form Accrual method. If you use an accrual
3115 to request an accounting method change. method, you generally report income when you your tax return.
earn it, rather than when you receive it. You Your child must have an SSN valid for
Cash method. If you use this method, report generally deduct your expenses when you incur ! employment issued before the due
all items of income in the year in which you ac- them, rather than when you pay them. CAUTION date of your 2023 return (including ex-
tually or constructively receive them. Generally, tensions) to be considered a qualifying child for
you deduct all expenses in the year you actually Income paid in advance. An advance pay- certain tax benefits on your original or amended
pay them. This is the method most individual ment of income is generally included in gross 2023 return. See chapter 14.
taxpayers use. income in the year you receive it. Your method
of accounting doesn't matter as long as the in- Exception. If your child was born and died
Constructive receipt. Generally, you con- come is available to you. An advance payment in 2023 and didn't have an SSN, enter “DIED” in
structively receive income when it is credited to may include rent or interest you receive in ad- column (2) of the Dependents section of Form
your account or set apart in any way that makes vance and pay for services you will perform 1040 or 1040-SR and include a copy of the
it available to you. You don't need to have physi- later. child's birth certificate, death certificate, or hos-
cal possession of it. For example, interest credi- A limited deferral until the next tax year may pital records. The document must show that the
ted to your bank account on December 31, be allowed for certain advance payments. See child was born alive.
2023, is taxable income to you in 2023 if you Pub. 538 for specific information.
could have withdrawn it in 2023 (even if the No SSN. File Form SS-5, Application for a So-
amount isn't entered in your records or with- Additional information. For more information cial Security Card, with your local SSA office to
drawn until 2024). on accounting methods, including how to get an SSN for yourself or your dependent. It
change your accounting method, see Pub. 538. usually takes about 2 weeks to get an SSN. If
Garnished wages. If your employer uses you or your dependent isn't eligible for an SSN,
your wages to pay your debts, or if your wages see Individual taxpayer identification number
are attached or garnished, the full amount is Social Security Number (ITIN), later.
constructively received by you. You must in-
clude these wages in income for the year you (SSN) If you are a U.S. citizen or resident alien, you
must show proof of age, identity, and citizenship
would have received them. You must enter your SSN on your return. If you or alien status with your Form SS-5. If you are
Debts paid for you. If another person can- are married, enter the SSNs for both you and 12 or older and have never been assigned an
cels or pays your debts (but not as a gift or your spouse, whether you file jointly or sepa- SSN, you must appear in person with this proof
loan), you have constructively received the rately. at an SSA office.
amount and must generally include it in your If you are filing a joint return, include the Form SS-5 is available at any SSA office, on
gross income for the year. See Canceled Debts SSNs in the same order as the names. Use this the Internet at SSA.gov/forms/ss-5.pdf, or by
in chapter 8 for more information. same order in submitting other forms and docu- calling 800-772-1213. If you have any questions
ments to the IRS. about which documents you can use as proof of
Payment to third party. If a third party is age, identity, or citizenship, contact your SSA
paid income from property you own, you have If you, or your spouse if filing jointly,
office.
constructively received the income. It is the ! don't have an SSN (or ITIN) issued on If your dependent doesn't have an SSN by
same as if you had actually received the income CAUTION or before the due date of your 2023 re-
and paid it to the third party. turn (including extensions), you can't claim cer- the time your return is due, you may want to ask
tain tax benefits on your original or an amended for an extension of time to file, as explained ear-
Payment to an agent. Income an agent re- 2023 return. lier under When Do I Have To File.
ceives for you is income you constructively re- If you don't provide a required SSN or if you
ceived in the year the agent receives it. If you in- Once you are issued an SSN, use it to file provide an incorrect SSN, your tax may be in-
dicate in a contract that your income is to be your tax return. Use your SSN to file your tax re- creased and any refund may be reduced.
paid to another person, you must include the turn even if your SSN does not authorize em-
amount in your gross income when the other ployment or if you have been issued an SSN Adoption taxpayer identification number
person receives it. that authorizes employment and you lose your (ATIN). If you are in the process of adopting a
employment authorization. An ITIN will not be child who is a U.S. citizen or resident and can’t
Check received or available. A valid check issued to you once you have been issued an
that was made available to you before the end SSN. If you received your SSN after previously
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get an SSN for the child until the adoption is fi-        tify your account, this helps the IRS respond to        Form 1040 or 1040-SR.     If you file a paper re-
nal, you can apply for an ATIN to use instead of          your correspondence promptly.                           turn,  attach  any  forms  and  schedules  behind 
an SSN.                                                                                                           Form 1040 or 1040-SR in order of the “Attach-
File  Form  W-7A,  Application  for  Taxpayer                                                                     ment  Sequence  No.”  shown  in  the  upper  right 
Identification  Number  for  Pending  U.S.  Adop-         Presidential Election                                   corner  of  the  form  or  schedule.  Then,  arrange 
tions, with the IRS to get an ATIN if all of the fol-     Campaign Fund                                           all other statements or attachments in the same 
lowing are true.                                                                                                  order as the forms and schedules they relate to 
                                                          This  fund  helps  pay  for  Presidential  election     and attach them last. Don't attach items unless 
•  You have a child living with you who was               campaigns. The fund also helps pay for pedia-           required to do so.
   placed in your home for legal adoption.                tric  medical  research.  If  you  want  $3  to  go  to 
•  You can’t get the child's existing SSN even            this fund, check the box. If you are filing a joint 
   though you have made a reasonable at-                  return, your spouse can also have $3 go to the          Third Party Designee
   tempt to get it from the birth parents, the            fund.  If  you  check  the  box,  your  tax  or  refund 
   placement agency, and other persons.                   won't change.                                           If  you  want  to  allow  your  preparer,  a  friend,  a 
                                                                                                                  family member, or any other person you choose 
•  You can’t get an SSN for the child from the                                                                    to  discuss  your  2023  tax  return  with  the  IRS, 
   SSA because, for example, the adoption                 Computations                                            check  the  “Yes”  box  in  the  “Third  Party  Desig-
   isn't final.                                                                                                   nee” area of your return. Also, enter the design-
                                                          The following information may be useful in mak-         ee's  name,  phone  number,  and  any  five  digits 
•  You are eligible to claim the child as a de-           ing the return easier to complete.                      the designee chooses as their personal identifi-
   pendent on your tax return.
After the adoption is final, you must apply for an        Rounding off dollars. You can round off cents           cation number (PIN).
SSN for the child. You can’t continue using the           to whole dollars on your return and schedules. If        If  you  check  the  “Yes”  box,  you,  and  your 
ATIN.                                                     you do round to whole dollars, you must round           spouse if filing a joint return, are authorizing the 
                                                          all amounts. To round, drop amounts under 50            IRS  to  call  the  designee  to  answer  any  ques-
See Form W-7A for more information.                       cents  and  increase  amounts  from  50  to  99         tions that arise during the processing of your re-
Nonresident alien spouse.      If your spouse is a        cents to the next dollar. For example, $1.39 be-        turn. You are also authorizing the designee to:
nonresident alien, your spouse must have either           comes $1 and $2.50 becomes $3.                          •    Give information that is missing from your 
an SSN or an ITIN if:                                     If you have to add two or more amounts to                    return to the IRS;
•  You file a joint return, or                            figure  the  amount  to  enter  on  a  line,  include        Call the IRS for information about the pro-
                                                          cents when adding the amounts and round off             •
                                                                                                                       cessing of your return or the status of your 
•  Your spouse is filing a separate return.               only the total.                                              refund or payments;
If your spouse isn't eligible for an SSN, see the         If  you  are  entering  amounts  that  include 
following discussion on ITINs.                            cents, make sure to include the decimal point.          •    Receive copies of notices or transcripts re-
                                                          There  is  no  cents  column  on  Form  1040  or             lated to your return, upon request; and
Individual  taxpayer  identification  number              1040-SR.                                                •    Respond to certain IRS notices about math 
(ITIN). The IRS will issue you an ITIN if you are                                                                      errors, offsets (see Refunds, later), and re-
a  nonresident  or  resident  alien  and  you  don't      Equal amounts.    If you are asked to enter the 
have and aren’t eligible to get an SSN. This also         smaller  or  larger  of  two  equal  amounts,  enter         turn preparation.
applies to an alien spouse or dependent. To ap-           that amount.                                             You  aren't  authorizing  the  designee  to  re-
ply  for  an  ITIN,  file  Form  W-7  with  the  IRS.  It Negative  amounts. If  you  file  a  paper  return      ceive  any  refund  check,  bind  you  to  anything 
usually takes about 7 weeks to get an ITIN. En-           and you need to enter a negative amount, put            (including  any  additional  tax  liability),  or  other-
ter the ITIN on your tax return wherever an SSN           the amount in parentheses rather than using a           wise represent you before the IRS. If you want 
is requested.                                             minus  sign.  To  combine  positive  and  negative      to  expand  the  designee's  authorization,  see 
Make sure your ITIN hasn’t expired. See In-               amounts, add all the positive amounts together          Pub. 947.
dividual  taxpayer  identification  number  (ITIN)        and then subtract the negative amounts.                  The  authorization  will  automatically  end  no 
renewal, earlier, for more information on expira-                                                                 later than the due date (without any extensions) 
tion  and  renewal  of  ITINs.  You  can  also  find                                                              for filing your 2024 tax return. This is April 15, 
more information at IRS.gov/ITIN.                         Attachments                                             2025, for most people.
                                                                                                                   See your form instructions for more informa-
        If you are applying for an ITIN for your-         Depending on the form you file and the items re-        tion.
TIP     self, your spouse, or a dependent in or-          ported  on  your  return,  you  may  have  to  com-
        der  to  file  your  tax  return,  attach  your   plete additional schedules and forms and attach 
completed tax return to your Form W-7. See the            them to your paper return.                              Signatures
Form W-7 instructions for how and where to file.
                                                                You may be able to file a paperless re-           You must sign and date your return. If you file a 
        You can’t e-file a return using an ITIN in        TIP   turn using IRS e-file. There's nothing to         joint return, both you and your spouse must sign 
                                                                attach  or  mail,  not  even  your  Forms         the return, even if only one of you had income.
!       the  calendar  year  the  ITIN  is  issued;       W-2. See Why Should I File Electronically, ear-
CAUTION however,  you  can  e-file  returns  in  the 
following years.                                          lier.                                                            If  you  file  a  joint  return,  both  spouses 
                                                                                                                           are generally liable for the tax, and the 
                                                          Form W-2. Form W-2 is a statement from your             CAUTION! entire  tax  liability  may  be  assessed 
ITIN for tax use only.  An ITIN is for federal            employer  of  wages  and  other  compensation           against either spouse. See chapter 2.
tax use only. It doesn't entitle you to social se-        paid  to  you  and  taxes  withheld  from  your  pay.    Your return isn't considered a valid return un-
curity  benefits  or  change  your  employment  or        You  should  have  a  Form  W-2  from  each  em-        less you sign it in accordance with the require-
immigration status under U.S. law.                        ployer. If you file a paper return, be sure to at-      ments in the instructions for your return.
Penalty  for  not  providing  social  security            tach a copy of Form W-2 in the place indicated           You  must  handwrite  your  signature  on  your 
number. If  you  don't  include  your  SSN  or  the       on your return. For more information, see Form          return if you file it on paper. Digital, electronic, or 
SSN of your spouse or dependent as required,              W-2 in chapter 4.                                       typed-font  signatures  are  not  valid  signatures 
you may have to pay a penalty. See the discus-                                                                    for Forms 1040 or 1040-SR filed on paper.
sion on Penalties, later, for more information.
                                                          Form  1099-R.   If  you  received  a  Form  1099-R       If you electronically file your return, you can 
SSN  on  correspondence.       If  you  write  to  the    showing  federal  income  tax  withheld,  and  you      use an electronic signature to sign your return in 
IRS about your tax account, be sure to include            file a paper return, attach a copy of that form in      accordance with the requirements contained in 
your  SSN  (and  the  name  and  SSN  of  your            the place indicated on your return.                     the instructions for your return.
spouse, if you filed a joint return) in your corre-
spondence. Because your SSN is used to iden-
14                                                              Chapter 1   Filing Information                                              Publication 17 (2023)

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Failure  to  sign  your  return  in  accordance          The preparer must give you a copy of your              Cashing  your  refund  check. Cash  your  tax 
with these requirements may prevent you from             return in addition to the copy filed with the IRS.     refund check soon after you receive it. Checks 
obtaining a refund.                                      If  you  prepare  your  own  return,  leave  this      expire the last business day of the 12th month 
Enter your occupation. If you file a joint re-           area blank. If another person prepares your re-        of issue.
turn, enter both your occupation and your spou-          turn  and  doesn't  charge  you,  that  person         If your check has expired, you can apply to 
se's occupation.                                         shouldn't sign your return.                            the IRS to have it reissued.
When  someone  can  sign  for  you.     You  can         If you have questions about whether a pre-             Refund  more  or  less  than  expected.    If  you 
appoint an agent to sign your return if you are:         parer must sign your return, contact any IRS of-       receive a check for a refund you aren’t entitled 
                                                         fice.
1. Unable to sign the return because of dis-                                                                    to, or for an overpayment that should have been 
ease or injury,                                                                                                 credited to estimated tax, don't cash the check. 
                                                         Refunds                                                Call the IRS.
2. Absent from the United States for a contin-                                                                  If you receive a check for more than the re-
uous period of at least 60 days before the               When you complete your return, you will deter-         fund you claimed, don't cash the check until you 
due date for filing your return, or                      mine  if  you  paid  more  income  tax  than  you      receive a notice explaining the difference.
                                                         owed. If so, you can get a refund of the amount        If  your  refund  check  is  for  less  than  you 
3. Given permission to do so by the IRS of-              you overpaid or you can choose to apply all or         claimed, it should be accompanied by a notice 
fice in your area.                                       part  of  the  overpayment  to  your  next  year's     explaining  the  difference.  Cashing  the  check 
Power  of  attorney.  A  return  signed  by  an          (2024) estimated tax.                                  doesn't  stop  you  from  claiming  an  additional 
agent in any of these cases must have a power                     If you choose to have a 2023 overpay-         amount of refund.
                                                                                                                If  you  didn't  receive  a  notice  and  you  have 
agent to sign for you. You can use a POA that            CAUTION  tax,  you  can’t  change  your  mind  and 
of  attorney  (POA)  attached  that  authorizes  the     !        ment  applied  to  your  2024  estimated      any questions about the amount of your refund, 
states that the agent is granted authority to sign       have any of it refunded to you after the due date      you should wait 2 weeks. If you still haven’t re-
the return, or you can use Form 2848. Part I of          (without extensions) of your 2023 return.              ceived a notice, call the IRS.
Form 2848 must state that the agent is granted 
authority to sign the return.                            Follow  the  Instructions  for  Form  1040  to         Offset against debts. If you are due a refund 
                                                         complete the entries to claim your refund and/or       but haven’t paid certain amounts you owe, all or 
Court-appointed  conservator,  guardian,  or             to apply your overpayment to your 2024 estima-         part  of  your  refund  may  be  used  to  pay  all  or 
other  fiduciary. If  you  are  a  court-appointed       ted tax.                                               part  of  the  past-due  amount.  This  includes 
conservator,  guardian,  or  other  fiduciary  for  a                                                           past-due federal income tax, other federal debts 
mentally  or  physically  incompetent  individual                 If your refund for 2023 is large, you may     (such as student loans), state income tax, child 
who has to file a tax return, sign your name for         TIP      want  to  decrease  the  amount  of  in-      and  spousal  support  payments,  and  state  un-
the individual. File Form 56.                                     come  tax  withheld  from  your  pay  in      employment compensation debt. You will be no-
                                                         2024. See chapter 4 for more information.              tified if the refund you claimed has been offset 
Unable  to  sign.    If  the  taxpayer  is  mentally                                                            against your debts.
competent but physically unable to sign the re-          DIRECT    DEPOSIT          Instead  of  getting  a  pa-
turn or POA, a valid “signature” is defined under             Simple. Safe. Secure. per  check,  you  may  be   Joint return and injured spouse.        When a 
state  law.  It  can  be  anything  that  clearly  indi- able to have your refund deposited directly into       joint return is filed and only one spouse owes a 
cates the taxpayer's intent to sign. For example,        your checking, savings, health savings, broker-        past-due amount, the other spouse can be con-
the taxpayer's “X” with the signatures of two wit-       age, or other similar account, including an indi-      sidered  an  injured  spouse.  An  injured  spouse 
nesses  might  be  considered  a  valid  signature       vidual retirement arrangement (IRA). Follow the        should  file  Form  8379,  Injured  Spouse  Alloca-
under a state's law.                                     Instructions for Form 1040 to request direct de-       tion,  if  both  of  the  following  apply  and  the 
                                                         posit. If the direct deposit can’t be done, the IRS    spouse  wants  a  refund  of  their  share  of  the 
Spouse unable to sign.    If your spouse is un-          will send a check instead.                             overpayment shown on the joint return.
able to sign for any reason, see Signing a joint 
return in chapter 2.                                     Don't  request  a  deposit  of  any  part  of  your    1. You aren’t legally obligated to pay the 
                                                         refund  to  an  account  that  isn't  in  your  name.  past-due amount.
Child's return. If a child has to file a tax return      Don't allow your tax preparer to deposit any part      2. You made and reported tax payments 
but  can’t  sign  the  return,  the  child's  parent,    of your refund into the preparer’s account. The        (such as federal income tax withheld from 
guardian, or another legally responsible person          number of direct deposits to a single account or       your wages or estimated tax payments), or 
must  sign  the  child's  name,  followed  by  the       prepaid debit card is limited to three refunds a       claimed a refundable tax credit (see the 
words  “By  (your  signature),  parent  for  minor       year. After this limit is exceeded, paper checks       credits listed under Who Should File, ear-
child.”                                                  will  be  sent  instead.  Learn  more  at IRS.gov/     lier).
                                                         DepositLimit.
Paid Preparer                                            IRA.  You can have your refund (or part of it) di-     Note.    If the injured spouse's residence was 
                                                         rectly deposited to a traditional IRA, Roth IRA,       in a community property state at any time during 
Generally, anyone you pay to prepare, assist in          or  SEP-IRA,  but  not  a  SIMPLE  IRA.  You  must     the  tax  year,  special  rules  may  apply.  See  the 
preparing, or review your tax return must sign it        establish the IRA at a bank or financial institu-      Instructions for Form 8379.
and fill in the other blanks, including their Pre-       tion before you request direct deposit.                If you haven’t filed your joint return and you 
parer  Tax  Identification  Number  (PTIN),  in  the                                                            know  that  your  joint  refund  will  be  offset,  file 
paid preparer's area of your return.                     TreasuryDirect®.   You  can  request  a  deposit       Form 8379 with your return. You should receive 
Many preparers are required to       e-file the tax      of your refund to a TreasuryDirect® online ac-         your refund within 14 weeks from the date the 
returns they prepare. They sign these   e-filed re-      count  to  buy  U.S.  Treasury  marketable  securi-    paper return is filed or within 11 weeks from the 
turns using their tax preparation software. How-         ties (if available) and savings bonds. For more        date the return is filed electronically.
ever, you can choose to have your return com-            information, go to https://TreasuryDirect.gov.         If you filed your joint return and your joint re-
pleted on paper if you prefer. In that case, the         Split  refunds. If  you  choose  direct  deposit,      fund was offset, file Form 8379 by itself. When 
paid  preparer  can  sign  the  paper  return  man-      you may be able to split the refund and have it        filed after offset, it can take up to 8 weeks to re-
ually or use a rubber stamp or mechanical de-            deposited into more than one account or use it         ceive  your  refund.  Don't  attach  the  previously 
vice. The preparer is personally responsible for         to buy up to $5,000 in paper or electronic series      filed  tax  return,  but  do  include  copies  of  all 
affixing their signature to the return.                  I  savings bonds. Complete Form 8888  and at-          Forms W-2 and W-2G for both spouses and any 
If the preparer is self-employed (that is, not           tach it to your return.                                Forms 1099 that show income tax withheld. The 
                                                                                                                processing  of  Form  8379  may  be  delayed  if 
employed by any person or business to prepare            Overpayment  less  than  one  dollar.         If  your these forms aren’t attached, or if the form is in-
the  return),  the  preparer  should  check  the         overpayment is less than $1, you won't get a re-       complete when filed.
self-employed  box  in  the  “Paid  Preparer  Use        fund unless you ask for it in writing.
Only” space on the return.
Publication 17 (2023)                                            Chapter 1          Filing Information                                                     15

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A separate Form 8379 must be filed for each To get more information about EFTPS or to your 2023 income tax return. See chapter 4 for
tax year to be considered. enroll in EFTPS, visit EFTPS.gov or call information on how to pay estimated tax.
800-555-4477. To contact EFTPS using Tele-
An injured spouse claim is different communications Relay Services (TRS) for peo- Interest
! from an innocent spouse relief request. ple who are deaf, hard of hearing, or have a
CAUTION An injured spouse uses Form 8379 to Interest is charged on tax you don't pay by the
speech disability, dial 711 and then provide the
request the division of the tax overpayment at- TRS assistant the 800-555-4477 number or due date of your return. Interest is charged even
tributed to each spouse. An innocent spouse 800-733-4829. Additional information about if you get an extension of time for filing.
uses Form 8857, Request for Innocent Spouse EFTPS is also available in Pub. 966. If the IRS figures your tax for you, to
Relief, to request relief from joint liability for tax,
interest, and penalties on a joint return for items To pay using a debit or credit card, you can TIP avoid interest for late payment, you
of the other spouse (or former spouse) that call one of the following service providers. must pay the bill by the date specified
were incorrectly reported on the joint return. For There is a convenience fee charged by these on the bill or by the due date of your return,
information on innocent spouses, see Relief providers that varies by provider, card type, and whichever is later. For information, see Tax Fig-
from joint responsibility under Filing a Joint Re- payment amount. ured by IRS in chapter 13.
turn in chapter 2.
WorldPay US, Inc. Interest on penalties. Interest is charged on
844-PAY-TAX-8 (844-729-8298)TM the failure-to-file penalty, the accuracy-related
www.payUSAtax.com
Amount You Owe penalty, and the fraud penalty from the due date
of the return (including extensions) to the date
When you complete your return, you will deter- ACI Payments, Inc. of payment. Interest on other penalties starts on
mine if you have paid the full amount of tax that 888-UPAY-TAX (888-872-9829)TM the date of notice and demand, but isn't
you owe. If you owe additional tax, you should fed.acipayonline.com charged on penalties paid within 21 calendar
pay it with your return. days from the date of the notice (or within 10
You don't have to pay if the amount you Link2Gov Corporation business days if the notice is for $100,000 or
TIP owe is under $1. 888-PAY-1040 (888-729-1040)TM more).
www.PAY1040.com Interest due to IRS error or delay. All or part
If the IRS figures your tax for you, you will re- of any interest you were charged can be for-
ceive a bill for any tax that is due. You should For the latest details on how to pay by given if the interest is due to an unreasonable
pay this bill within 30 days (or by the due date of phone, go to IRS.gov/Payments. error or delay by an officer or employee of the
IRS in performing a ministerial or managerial
your return, if later). See Tax Figured by IRS in Pay by cash. Cash is an in-person payment act.
chapter 13. option for individuals provided through retail A ministerial act is a procedural or mechani-
If you don't pay your tax when due, you partners with a maximum of $1,000 per day per cal act that occurs during the processing of your
! may have to pay a failure-to-pay pen- transaction. To make a cash payment, choose a case. A managerial act includes personnel
CAUTION alty. See Penalties, later. For more in- payment processor online at transfers and extended personnel training. A
formation about your balance due, see Pub. fed.acipayonline.com or www.PAY1040.com. decision concerning the proper application of
594. Don’t send cash payments through the mail. federal tax law isn't a ministerial or managerial
If the amount you owe for 2023 is large, Pay by check or money order. Make your act.
TIP you may want to increase the amount check or money order payable to “United States The interest can be forgiven only if you
of income tax withheld from your pay or Treasury” for the full amount due. Don't send aren’t responsible in any important way for the
make estimated tax payments for 2024. See cash. Don't attach the payment to your return. error or delay and the IRS has notified you in
chapter 4 for more information. Show your correct name, address, SSN, day- writing of the deficiency or payment. For more
time phone number, and the tax year and form information, see Pub. 556.
number on the front of your check or money or- Interest and certain penalties may also be
How To Pay der. If you are filing a joint return, enter the SSN suspended for a limited period if you filed your
shown first on your tax return. return by the due date (including extensions)
You can pay online, by phone, by mobile device, and the IRS doesn't provide you with a notice
in cash, or by check or money order. Don't in- Notice to taxpayers presenting checks. specifically stating your liability and the basis for
clude any estimated tax payment for 2024 in When you provide a check as payment, you au- it before the close of the 36-month period begin-
this payment. Instead, make the estimated tax thorize us either to use information from your ning on the later of:
payment separately. check to make a one-time electronic fund trans- The date the return is filed, or
Bad check or payment. The penalty for writ- fer from your account or to process the payment •
ing a bad check to the IRS is $25 or 2% of the as a check transaction. When we use informa- • The due date of the return without regard
check, whichever is more. This penalty also ap- tion from your check to make an electronic fund to extensions.
plies to other forms of payment if the IRS transfer, funds may be withdrawn from your ac- For more information, see Pub. 556.
doesn't receive the funds. count as soon as the same day we receive your
payment, and you will not receive your check
Pay online. Paying online is convenient and back from your financial institution. Installment Agreement
secure and helps make sure we get your pay- If you can’t pay the full amount due with your re-
ments on time. No checks of $100 million or more accep- turn, you can ask to make monthly installment
You can pay online with a direct transfer ted. The IRS can’t accept a single check (in- payments for the full or a partial amount. How-
from your bank account using IRS Direct Pay or cluding a cashier’s check) for amounts of ever, you will be charged interest and may be
the Electronic Federal Tax Payment System $100,000,000 ($100 million) or more. If you are charged a late payment penalty on the tax not
(EFTPS), or by debit or credit card. sending $100 million or more by check, you’ll paid by the date your return is due, even if your
To pay your taxes online or for more informa- need to spread the payment over two or more request to pay in installments is granted. If your
tion, go to IRS.gov/Payments. checks with each check made out for an request is granted, you must also pay a fee. To
amount less than $100 million. This limit doesn’t limit the interest and penalty charges, pay as
Pay by phone. Paying by phone is another apply to other methods of payment (such as much of the tax as possible with your return. But
safe and secure method of paying online. Use electronic payments). Please consider a before requesting an installment agreement,
one of the following methods. method of payment other than check if the you should consider other less costly alterna-
• EFTPS. amount of the payment is over $100 million. tives, such as a bank loan or credit card pay-
• Debit or credit card. Estimated tax payments. Don't include any ment.
2024 estimated tax payment in the payment for
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To apply for an installment agreement on- file it electronically. See Why Should I File Elec- You can use your checkbook to keep a re-
line, go to IRS.gov/OPA. You can also use Form tronically, earlier. cord of your income and expenses. You also
9465. need to keep documents, such as receipts and
Mailing your paper return. Mail your paper sales slips, that can help prove a deduction.
In addition to paying by check or money or- return to the address shown in the Instructions
der, you can use a credit or debit card or direct for Form 1040. In this section, you will find guidance about
payment from your bank account to make in- basic records that everyone should keep. The
stallment agreement payments. See How To section also provides guidance about specific
Pay, earlier. What Happens After records you should keep for certain items.
I File? Electronic records. All requirements that ap-
Gift To Reduce Debt ply to hard copy books and records also apply
After you send your return to the IRS, you may to electronic storage systems that maintain tax
Held by the Public have some questions. This section discusses books and records. When you replace hard
You can make a contribution (gift) to re- concerns you may have about recordkeeping, copy books and records, you must maintain the
duce debt held by the public. If you your refund, and what to do if you move. electronic storage systems for as long as they
wish to do so, make a separate check are material to the administration of tax law.
payable to “Bureau of the Fiscal Service.” For details on electronic storage system re-
What Records Should quirements, see Revenue Procedure 97-22,
Send your check to: I Keep? which is on page 9 of Internal Revenue Bulletin
1997-13 at IRS.gov/pub/irs-irbs/irb97-13.pdf.
This part discusses why you should keep re-
Bureau of the Fiscal Service cords, what kinds of records you should keep, Copies of tax returns. You should keep cop-
ATTN: Department G and how long you should keep them. ies of your tax returns as part of your tax re-
P.O. Box 2188 cords. They can help you prepare future tax re-
Parkersburg, WV 26106-2188 You must keep records so that you can turns, and you will need them if you file an
prepare a complete and accurate in-
Or enclose your separate check in the envelope RECORDS come tax return. The law doesn't re- amended return or are audited. Copies of your
returns and other records can be helpful to your
with your income tax return. Don't add this gift to quire any special form of records. However, you survivor or the executor or administrator of your
any tax you owe. should keep all receipts, canceled checks or estate.
other proof of payment, and any other records If necessary, you can request a copy of a re-
For information on making this type of gift to support any deductions or credits you claim. turn and all attachments (including Form W-2)
online, go to TreasururyDirect.gov/Help-Center/ If you file a claim for refund, you must be from the IRS by using Form 4506. There is a
Public-Debt-FAQs/#DebtFinance and see the able to prove by your records that you have charge for a copy of a return. For information on
information under “How do you make a contri- overpaid your tax. the cost and where to file, see the Instructions
bution to reduce the debt?” This part doesn't discuss the records you for Form 4506.
You may be able to deduct this gift as a should keep when operating a business. For in- If you just need information from your return,
charitable contribution on next year's tax return formation on business records, see Pub. 583. you can order a transcript in one of the following
if you itemize your deductions on Schedule A ways.
(Form 1040). • Go to IRS.gov/Transcript.
Why Keep Records?
• Call 800-908-9946.
Name and Address Good records help you:
• Use Form 4506-T or Form 4506T-EZ.
• Identify sources of income. Your records
After you have completed your return, fill in your can identify the sources of your income to There is no fee for a transcript. For more infor-
name and address in the appropriate area of help you separate business from nonbusi- mation, see Form 4506-T.
Form 1040 or 1040-SR. ness income and taxable from nontaxable
You must include your SSN in the cor- income. Basic Records
! rect place on your tax return. • Keep track of expenses. You can use
CAUTION your records to identify expenses for which Basic records are documents that everybody
P.O. box. If your post office doesn't deliver mail you can claim a deduction. This helps you should keep. These are the records that prove
to your street address and you have a P.O. box, determine if you can itemize deductions on your income and expenses. If you own a home
enter your P.O. box number on the line for your your tax return. or investments, your basic records should con-
tain documents related to those items.
present home address instead of your street ad- • Keep track of the basis of property. You
dress. need to keep records that show the basis Income. Your basic records prove the amounts
of your property. This includes the original you report as income on your tax return. Your in-
Foreign address. If your address is outside cost or other basis of the property and any come may include wages, dividends, interest,
the United States or its territories, enter the city improvements you made. and partnership or S corporation distributions.
name on the appropriate line of your Form 1040 Your records can also prove that certain
or 1040-SR. Don't enter any other information • Prepare tax returns. You need records to amounts aren’t taxable, such as tax-exempt in-
on that line, but also complete the spaces below prepare your tax return. terest.
that line. • Support items reported on tax returns.
1. Foreign country name. The IRS may question an item on your re- Note. If you receive a Form W-2, keep Copy
turn. Your records will help you explain any C until you begin receiving social security bene-
2. Foreign province/state/county. item and arrive at the correct tax. If you fits. This will help protect your benefits in case
3. Foreign postal code. can’t produce the correct documents, you there is a question about your work record or
may have to pay additional tax and be sub- earnings in a particular year.
Don’t abbreviate the country name. Follow the ject to penalties. Expenses. Your basic records prove the ex-
country's practice for entering the postal code
and the name of the province, county, or state. penses for which you claim a deduction (or
Kinds of Records To Keep credit) on your tax return. Your deductions may
include alimony, charitable contributions, mort-
Where Do I File? The IRS doesn't require you to keep your re- gage interest, and real estate taxes. You may
cords in a particular way. Keep them in a man- also have childcare expenses for which you can
After you complete your return, you must send it ner that allows you and the IRS to determine claim a credit.
to the IRS. You can mail it or you may be able to your correct tax.
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Home. Your  basic  records  should  enable  you       that apply to income tax returns. Unless other-          Interest on Refunds
to determine the basis or adjusted basis of your      wise stated, the years refer to the period begin-
home. You need this information to determine if       ning after the return was filed. Returns filed be-       If you are due a refund, you may get interest on 
you  have  a  gain  or  loss  when  you  sell  your   fore the due date are treated as being filed on          it. The interest rates are adjusted quarterly.
home or to figure depreciation if you use part of     the due date.                                            If the refund is made within 45 days after the 
your  home  for  business  purposes  or  for  rent.                                                            due date of your return, no interest will be paid. 
Your  records  should  show  the  purchase  price,    Table 1-7. Period of Limitations                         If you file your return after the due date (includ-
settlement or closing costs, and the cost of any                                                               ing extensions), no interest will be paid if the re-
improvements. They may also show any casu-              IF you...                  THEN the                    fund is made within 45 days after the date you 
alty losses deducted and insurance reimburse-                                      period is...                filed. If the refund isn't made within this 45-day 
ments for casualty losses.                                                                                     period, interest will be paid from the due date of 
For  detailed  information on basis, including        1 File a return and (2),     3 years.                    the return or from the date you filed, whichever 
which settlement or closing costs are included          (3), and (4) don't apply                               is later. 
in the basis of your home, see Pub. 551.                to you,                                                Accepting  a  refund  check  doesn't  change 
When  you  sell  your  home,  your  records           2 Don't report income        6 years.                    your right to claim an additional refund and in-
should show the sales price and any selling ex-         that you should and it is                              terest. File your claim within the period of time 
penses, such as commissions. For information            more than 25% of the                                   that applies. See Amended Returns and Claims 
on selling your home, see Pub. 523.                                                                            for  Refund,  later.  If  you  don't  accept  a  refund 
                                                        gross income shown on 
Investments.      Your  basic  records  should  ena-    your return,                                           check, no more interest will be paid on the over-
ble  you  to  determine  your  basis  in  an  invest-                                                          payment included in the check.
ment and whether you have a gain or loss when         3 File a fraudulent return,  No limit.
                                                                                                               Interest  on  erroneous  refund. All  or  part  of 
you  sell  it.  Investments  include  stocks,  bonds, 4 Don't file a return,       No limit.                   any interest you were charged on an erroneous 
and mutual funds. Your records should show the                                                                 refund  will  generally  be  forgiven.  Any  interest 
purchase  price,  sales  price,  and  commissions.    5 File a claim for credit or The later of 3              charged for the period before demand for repay-
They may also show any reinvested dividends,            refund after you filed     years or 2                  ment was made will be forgiven unless:
stock  splits  and  dividends,  load  charges,  and     your return,               years after tax 
original issue discount (OID).                                                     was paid.                   1. You, or a person related to you, caused 
                                                                                                               the erroneous refund in any way; or
For  information  on  stocks,  bonds,  and  mu-       6 File a claim for a loss    7 years.
tual funds, see Pub. 550 and Pub. 551.                  from worthless                                         2. The refund is more than $50,000.
                                                        securities or bad debt                                 For example, if you claimed a refund of $100 
Proof of Payment                                        deduction,                                             on your return, but the IRS made an error and 
One of your basic records is proof of payment.                                                                 sent you $1,000, you wouldn't be charged inter-
You should keep these records to support cer-                                                                  est  for  the  time  you  held  the  $900  difference. 
tain amounts shown on your tax return. Proof of       Property. Keep records relating to property un-          You  must,  however,  repay  the  $900  when  the 
payment alone isn't proof that the item claimed       til the period of limitations expires for the year in    IRS asks.
on  your  return  is  allowable.  You  should  also   which you dispose of the property in a taxable 
keep other documents that will help prove that        disposition. You must keep these records to fig-
the item is allowable.                                ure your basis for computing gain or loss when           Change of Address
Generally,  you  prove  payment  with  a  cash        you sell or otherwise dispose of the property.
receipt, financial account statement, credit card       Generally, if you received property in a non-          If  you  have  moved,  file  your  return  using  your 
statement, canceled check, or substitute check.       taxable exchange, your basis in that property is         new address.
If you make payments in cash, you should get a        the same as the basis of the property you gave           If  you  move  after  you  filed  your  return,  you 
dated  and  signed  receipt  showing  the  amount     up. You must keep the records on the old prop-           should give the IRS clear and concise notifica-
and the reason for the payment.                       erty, as well as the new property, until the period      tion of your change of address. The notification 
If  you  make  payments  using  your  bank  ac-       of  limitations  expires  for  the  year  in  which  you may be written, electronic, or oral. Send written 
count, you may be able to prove payment with          dispose of the new property in a taxable dispo-          notification  to  the  Internal  Revenue  Service 
an account statement.                                 sition.                                                  Center  serving  your  old  address.  You  can  use 
                                                                                                               Form 8822, Change of Address. If you are ex-
Account  statements.   You  may  be  able  to                                                                  pecting a refund, also notify the post office serv-
prove  payment  with  a  legible  financial  account  Refund Information                                       ing your old address. This will help in forwarding 
statement prepared by your bank or other finan-                                                                your  check  to  your  new  address  (unless  you 
cial institution.                                     You  can  go  online  to  check  the  status  of  your   chose direct deposit of your refund). For more 
                                                      2023  refund  24  hours  after  the  IRS  receives       information,  see  Revenue  Procedure  2010-16, 
Pay statements.   You may have deductible ex-         your e-filed return, or 4 weeks after you mail a         2010-19  I.R.B.  664,  available  at IRS.gov/irb/
penses  withheld  from  your  paycheck,  such  as     paper return. If you filed Form 8379 with your re-       2010-19_IRB/ar07.html.
medical insurance premiums. You should keep           turn, allow 14 weeks (11 weeks if you filed elec-        Be sure to include your SSN (and the name 
your year-end or final pay statements as proof        tronically)  before  checking  your  refund  status.     and SSN of your spouse if you filed a joint re-
of payment of these expenses.                         Be sure to have a copy of your 2023 tax return           turn) in any correspondence with the IRS.
                                                      available because you will need to know the fil-
                                                      ing  status,  the  first  SSN  shown  on  the  return, 
How Long To Keep                                      and  the  exact  whole-dollar  amount  of  the  re-      What if I Made
Records                                               fund. To check on your refund, do one of the fol-
                                                      lowing.                                                  a Mistake?
You  must  keep  your  records  as  long  as  they 
may  be  needed  for  the  administration  of  any    • Go to IRS.gov/Refunds.                                 Errors may delay your refund or result in notices 
provision of the Internal Revenue Code. Gener-        • Download the free IRS2Go app to your                   being sent to you. If you discover an error, you 
ally, this means you must keep records that sup-        smart phone and use it to check your re-               can file an amended return or claim for refund.
port items shown on your return until the period        fund status.
of limitations for that return runs out.                Call the automated refund hotline at                   Amended Returns and
The period of limitations is the period of time       •
                                                        800-829-1954.
in which you can amend your return to claim a                                                                  Claims for Refund
credit or refund or the IRS can assess additional 
tax. Table 1-7 contains the periods of limitations                                                             You should correct your return if, after you have 
                                                                                                               filed it, you find that:
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1. You didn't report some income, may have additional time to file your amended tax of $500 paid before that period can’t be re-
2. You claimed deductions or credits you return. See Pub. 556 for details. funded or credited.
shouldn't have claimed, Protective claim for refund. Generally, a pro- If you file a claim more than 3 years after you
3. You didn't claim deductions or credits you tective claim is a formal claim or amended re- file your return, the credit or refund can’t be
could have claimed, or turn for credit or refund normally based on cur- more than the tax you paid within the 2 years
rent litigation or expected changes in tax law or immediately before you file the claim.
4. You should have claimed a different filing other legislation. You file a protective claim
status. (Once you file a joint return, you when your right to a refund is contingent on fu- Example. You filed your 2019 tax return on
can’t choose to file separate returns for ture events and may not be determinable until April 15, 2020. You paid taxes of $500. On No-
that year after the due date of the return. after the statute of limitations expires. A valid vember 5, 2021, after an examination of your
However, an executor may be able to protective claim doesn't have to list a particular 2019 return, you had to pay an additional tax of
make this change for a deceased spouse.) dollar amount or demand an immediate refund. $200. On May 12, 2023, you file a claim for a re-
However, a valid protective claim must:
If you need a copy of your return, see Copies of fund of $300. However, because you filed your
tax returns under Kinds of Records To Keep, • Be in writing and signed; claim more than 3 years after you filed your re-
earlier, in this chapter. • Include your name, address, SSN or ITIN, turn, your refund will be limited to the $200 you
Form 1040-X. Use Form 1040-X to correct a and other contact information; paid during the 2 years immediately before you
filed your claim.
return you have already filed. • Identify and describe the contingencies af-
fecting the claim; Financially disabled. The time periods for
Completing Form 1040-X. On Form claiming a refund are suspended for the period
1040-X, enter your income, deductions, and • Clearly alert the IRS to the essential nature in which you are financially disabled. For a joint
credits as you originally reported them on your of the claim; and income tax return, only one spouse has to be fi-
return; the changes you are making; and the • Identify the specific year(s) for which a re- nancially disabled for the time period to be sus-
corrected amounts. Then, figure the tax on the fund is sought. pended. You are financially disabled if you are
corrected amount of taxable income and the unable to manage your financial affairs because
amount you owe or your refund. Mail your protective claim for refund to the ad- of a medically determinable physical or mental
If you owe tax, the IRS offers several pay- dress listed in the Instructions for Form 1040-X impairment that can be expected to result in
ment options. See How To Pay, earlier. The tax under Where To File. death or that has lasted or can be expected to
owed won't be subtracted from any amount you Generally, the IRS will delay action on the last for a continuous period of not less than 12
had credited to your estimated tax. protective claim until the contingency is re- months. However, you aren’t treated as finan-
If you can’t pay the full amount due with your solved. cially disabled during any period your spouse or
return, you can ask to make monthly installment Limit on amount of refund. If you file your any other person is authorized to act on your
payments. See Installment Agreement, earlier. claim within 3 years after the date you filed your behalf in financial matters.
If you overpaid tax, you can have all or part return, the credit or refund can’t be more than To claim that you are financially disabled,
of the overpayment refunded to you, or you can the part of the tax paid within the 3-year period you must send in the following written state-
apply all or part of it to your estimated tax. If you (plus any extension of time for filing your return) ments with your claim for refund.
choose to get a refund, it will be sent separately immediately before you filed the claim. This 1. A statement from your qualified physician
from any refund shown on your original return. time period is suspended while you are finan- that includes:
Filing Form 1040-X. When completing cially disabled, discussed later.
a. The name and a description of your
Form 1040-X, don't forget to show the year of Tax paid. Payments, including estimated tax physical or mental impairment;
your original return and explain all changes you payments, made before the due date (without
made. Be sure to attach any forms or schedules regard to extensions) of the original return are b. The physician's medical opinion that
needed to explain your changes. Mail your considered paid on the due date. For example, the impairment prevented you from
Form 1040-X to the Internal Revenue Service income tax withheld during the year is consid- managing your financial affairs;
Center serving the area where you now live (as ered paid on the due date of the return, which is c. The physician's medical opinion that
shown in the Instructions for Form 1040-X). April 15 for most taxpayers. the impairment was or can be expec-
However, if you are filing Form 1040-X in re-
ted to result in death, or that its dura-
sponse to a notice you received from the IRS, Example 1. You made estimated tax pay- tion has lasted, or can be expected to
mail it to the address shown on the notice. ments of $500 and got an automatic extension last, at least 12 months;
File a separate form for each tax year in- of time to October 15, 2020, to file your 2019 in-
volved. come tax return. When you filed your return on d. The specific time period (to the best of
You can file Form 1040-X electronically to that date, you paid an additional $200 tax. On the physician's knowledge); and
amend 2019 or later Forms 1040 and 1040-SR. October 16, 2023, you filed an amended return e. The following certification signed by
For more information, see Instructions for Form and claimed a refund of $700. October 15, 2023 the physician: “I hereby certify that, to
1040-X. was a Sunday so you had until the next busi- the best of my knowledge and belief,
Time for filing a claim for refund. Generally, ness day, October 16, to file your amended re- the above representations are true,
you must file your claim for a credit or refund turn. Because you filed your claim within 3 years correct, and complete.”
within 3 years after the date you filed your origi- after you filed your original return, you can get a
nal return or within 2 years after the date you refund of up to $700, the tax paid within the 3 2. A statement made by the person signing
paid the tax, whichever is later. Returns filed be- years plus the 6-month extension period imme- the claim for credit or refund that no per-
fore the due date (without regard to extensions) diately before you filed the claim. son, including your spouse, was author-
are considered filed on the due date (even if the ized to act on your behalf in financial mat-
due date was a Saturday, Sunday, or legal holi- Example 2. The situation is the same as in ters during the period of disability (or the
day). These time periods are suspended while Example 1, except you filed your return on Oc- exact dates that a person was authorized
you are financially disabled, discussed later. tober 30, 2020, 2 weeks after the extension pe- to act for you).
If the last day for claiming a credit or refund riod ended. You paid an additional $200 on that Exceptions for special types of refunds. If
is a Saturday, Sunday, or legal holiday, you can date. On October 30, 2023, you filed an amen- you file a claim for one of the items in the follow-
file the claim on the next business day. ded return and claimed a refund of $700. Al- ing list, the dates and limits discussed earlier
If you don't file a claim within this period, you though you filed your claim within 3 years from may not apply. These items, and where to get
may not be entitled to a credit or a refund. the date you filed your original return, the refund more information, are as follows.
was limited to $200, the tax paid within the 3
Federally declared disaster. If you were years plus the 6-month extension period imme- • Bad debt. See Pub. 550.
affected by a federally declared disaster, you diately before you filed the claim. The estimated
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• Worthless security. See Pub. 550. Penalties Accuracy-related penalty. You may have to
• Foreign tax paid or accrued. See Pub. 514. pay an accuracy-related penalty if you underpay
The law provides penalties for failure to file re- your tax because:
turns or pay taxes as required.
• Net operating loss carryback. See Pub. 1. You show negligence or disregard of the
536. rules or regulations,
• Carryback of certain business tax credits. Civil Penalties 2. You substantially understate your income
See Form 3800. If you don't file your return and pay your tax by tax,
the due date, you may have to pay a penalty.
• Claim based on an agreement with the IRS You may also have to pay a penalty if you sub- 3. You claim tax benefits for a transaction
extending the period for assessment of tax. stantially understate your tax, understate a re- that lacks economic substance, or
portable transaction, file an erroneous claim for 4. You fail to disclose a foreign financial as-
Processing claims for refund. Claims are refund or credit, file a frivolous tax submission, set.
usually processed 8–12 weeks after they are or fail to supply your SSN or ITIN. If you provide
filed. Your claim may be accepted as filed, disal- fraudulent information on your return, you may The penalty is equal to 20% of the underpay-
lowed, or subject to examination. If a claim is have to pay a civil fraud penalty. ment. The penalty is 40% of any portion of the
underpayment that is attributable to an undis-
examined, the procedures are the same as in Filing late. If you don't file your return by the closed noneconomic substance transaction or
the examination of a tax return. due date (including extensions), you may have an undisclosed foreign financial asset transac-
If your claim is disallowed, you will receive to pay a failure-to-file penalty. The penalty is tion. The penalty won't be figured on any part of
an explanation of why it was disallowed. usually 5% for each month or part of a month an underpayment on which the fraud penalty
Taking your claim to court. You can sue for a that a return is late, but not more than 25%. The (discussed later) is charged.
refund in court, but you must first file a timely penalty is based on the tax not paid by the due
claim with the IRS. If the IRS disallows your date (without regard to extensions). Negligence or disregard. The term “negli-
gence” includes a failure to make a reasonable
claim or doesn't act on your claim within 6 attempt to comply with the tax law or to exercise
months after you file it, you can then take your Fraud. If your failure to file is due to fraud,
claim to court. For information on the burden of the penalty is 15% for each month or part of a ordinary and reasonable care in preparing a re-
proof in a court proceeding, see Pub. 556. month that your return is late, up to a maximum turn. Negligence also includes failure to keep
of 75%. adequate books and records. You won't have to
The IRS provides a direct method to move pay a negligence penalty if you have a reasona-
your claim to court if: Return over 60 days late. If you file your re- ble basis for a position you took.
• You are filing a claim for a credit or refund turn more than 60 days after the due date, or The term “disregard” includes any careless,
based solely on contested income tax or extended due date, the minimum penalty is the reckless, or intentional disregard.
on estate tax or gift tax issues considered smaller of $485 or 100% of the unpaid tax.
in your previously examined returns, and Adequate disclosure. You can avoid the
Exception. You won't have to pay the pen- penalty for disregard of rules or regulations if
• You want to take your case to court instead alty if you show that you failed to file on time be- you adequately disclose on your return a posi-
of appealing it within the IRS. cause of reasonable cause and not because of tion that has at least a reasonable basis. See
When you file your claim with the IRS, you willful neglect. Disclosure statement, later.
This exception won't apply to an item that is
get the direct method by requesting in writing Paying tax late. You will have to pay a fail- attributable to a tax shelter. In addition, it won't
that your claim be immediately rejected. A no- ure-to-pay penalty of / of 1% (0.50%) of your 1 2
apply if you fail to keep adequate books and re-
tice of claim disallowance will be sent to you. unpaid taxes for each month, or part of a month, cords, or substantiate items properly.
You have 2 years from the date of mailing of after the due date that the tax isn't paid. This
the notice of claim disallowance to file a refund penalty doesn't apply during the automatic Substantial understatement of income
suit in the U.S. District Court having jurisdiction 6-month extension of time to file period if you tax. You understate your tax if the tax shown on
or in the U.S. Court of Federal Claims. paid at least 90% of your actual tax liability on or your return is less than the correct tax. The un-
Interest on refund. If you receive a refund be- before the due date of your return and pay the derstatement is substantial if it is more than the
cause of your amended return, interest will be balance when you file the return. larger of 10% of the correct tax or $5,000. How-
paid on it from the due date of your original re- The monthly rate of the failure-to-pay pen- ever, the amount of the understatement may be
turn or the date you filed your original return, alty is half the usual rate (0.25% instead of reduced to the extent the understatement is due
whichever is later, to the date you filed the 0.50%) if an installment agreement is in effect to:
amended return. However, if the refund isn't for that month. You must have filed your return 1. Substantial authority, or
made within 45 days after you file the amended by the due date (including extensions) to qualify
return, interest will be paid up to the date the re- for this reduced penalty. 2. Adequate disclosure and a reasonable ba-
fund is paid. If a notice of intent to levy is issued, the rate sis.
will increase to 1% at the start of the first month If an item on your return is attributable to a tax
Reduced refund. Your refund may be reduced beginning at least 10 days after the day that the shelter, there is no reduction for an adequate
by an additional tax liability that has been as- notice is issued. If a notice and demand for im- disclosure. However, there is a reduction for a
sessed against you. mediate payment is issued, the rate will in- position with substantial authority, but only if you
Also, your refund may be reduced by crease to 1% at the start of the first month be- reasonably believed that your tax treatment was
amounts you owe for past-due federal tax, state ginning after the day that the notice and more likely than not the proper treatment.
income tax, state unemployment compensation demand is issued.
debts, child support, spousal support, or certain This penalty can’t be more than 25% of your Substantial authority. Whether there is or
other federal nontax debts, such as student unpaid tax. You won't have to pay the penalty if was substantial authority for the tax treatment of
loans. If your spouse owes these debts, see you can show that you had a good reason for an item depends on the facts and circumstan-
Offset against debts under Refunds, earlier, for not paying your tax on time. ces. Some of the items that may be considered
the correct refund procedures to follow. are court opinions, Treasury regulations, reve-
Combined penalties. If both the failure-to-file nue rulings, revenue procedures, and notices
Effect on state tax liability. If your return is penalty and the failure-to-pay penalty (dis- and announcements issued by the IRS and
changed for any reason, it may affect your state cussed earlier) apply in any month, the 5% (or published in the Internal Revenue Bulletin that
income tax liability. This includes changes 15%) failure-to-file penalty is reduced by the involve the same or similar circumstances as
made as a result of an examination of your re- failure-to-pay penalty. However, if you file your yours.
turn by the IRS. Contact your state tax agency return more than 60 days after the due date or
for more information. extended due date, the minimum penalty is the Disclosure statement. To adequately dis-
smaller of $485 or 100% of the unpaid tax. close the relevant facts about your tax treatment
20 Chapter 1 Filing Information Publication 17 (2023)

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of an item, use Form 8275. You must also have person when it is required on a return, state- mimic legitimate business emails and websites.
a reasonable basis for treating the item the way ment, or other document. The most common form is the act of sending an
you did. For example, if you have a bank account that email to a user falsely claiming to be an estab-
In cases of substantial understatement only, earns interest, you must give your SSN to the lished legitimate enterprise in an attempt to
items that meet the requirements of Revenue bank. The number must be shown on the Form scam the user into surrendering private informa-
Procedure 2022-41 (or later update) are consid- 1099-INT or other statement the bank sends tion that will be used for identity theft.
ered adequately disclosed on your return with- you. If you don't give the bank your SSN, you The IRS doesn't initiate contacts with tax-
out filing Form 8275. will be subject to the $50 penalty. (You may also payers via emails. Also, the IRS doesn't request
Use Form 8275-R to disclose items or posi- be subject to “backup” withholding of income detailed personal information through email or
tions contrary to regulations. tax. See chapter 4.) ask taxpayers for the PIN numbers, passwords,
Transaction lacking economic substance. You won't have to pay the penalty if you are or similar secret access information for their
For more information on economic substance, able to show that the failure was due to reason- credit card, bank, or other financial accounts.
see section 7701(o). able cause and not willful neglect. If you receive an unsolicited email claiming
to be from the IRS, forward the message to
Foreign financial asset. For more informa- phishing@irs.gov. You may also report misuse
tion on undisclosed foreign financial assets, see Criminal Penalties of the IRS name, logo, forms, or other IRS prop-
section 6662(j). You may be subject to criminal prosecution erty to the Treasury Inspector General for Tax
(brought to trial) for actions such as: Administration toll free at 800-366-4484. You
Reasonable cause. You won't have to pay a can forward suspicious emails to the Federal
penalty if you show a good reason (reasonable 1. Tax evasion;
Trade Commission (FTC) at spam@uce.gov or
cause) for the way you treated an item. You 2. Willful failure to file a return, supply infor- report them at ftc.gov/complaint. You can con-
must also show that you acted in good faith. mation, or pay any tax due; tact them at ftc.gov/idtheft or 877-IDTHEFT
This doesn't apply to a transaction that lacks (877-438-4338). If you have been a victim of
economic substance. 3. Fraud and false statements;
identity theft, see IdentityTheft.gov or Pub.
Filing erroneous claim for refund or credit. 4. Preparing and filing a fraudulent return; or 5027. People who are deaf, hard of hearing, or
You may have to pay a penalty if you file an erro- 5. Identity theft. have a speech disability and who have access
neous claim for refund or credit. The penalty is to TTY/TDD equipment can call 866-653-4261.
equal to 20% of the disallowed amount of the Go to IRS.gov/IDProtection to learn more
claim, unless you can show a reasonable basis Identity Theft about identity theft and how to reduce your risk.
for the way you treated an item. However, any
disallowed amount due to a transaction that Identity theft occurs when someone uses your
lacks economic substance won't be treated as personal information such as your name, SSN,
having a reasonable basis. The penalty won't or other identifying information, without your
be figured on any part of the disallowed amount permission, to commit fraud or other crimes. An
of the claim that relates to the earned income identity thief may use your SSN to get a job or
credit or on which the accuracy-related or fraud may file a tax return using your SSN to receive a
penalties are charged. refund. 2.
To reduce your risk:
Frivolous tax submission. You may have to
pay a penalty of $5,000 if you file a frivolous tax • Protect your SSN,
return or other frivolous submissions. A frivolous • Ensure your employer is protecting your Filing Status
tax return is one that doesn't include enough in- SSN, and
formation to figure the correct tax or that con-
tains information clearly showing that the tax • Be careful when choosing a tax preparer.
Introduction
you reported is substantially incorrect. For more If your tax records are affected by identity
information on frivolous returns, frivolous sub- theft and you receive a notice from the IRS, re- This chapter helps you determine which filing
missions, and a list of positions that are identi- spond right away to the name and phone num- status to use. There are five filing statuses.
fied as frivolous, see Notice 2010-33, 2010-17 ber printed on the IRS notice or letter. • Single.
I.R.B. 609, available at IRS.gov/irb/ If your SSN has been lost or stolen or you
2010-17_IRB/ar13.html. suspect you are a victim of tax-related identity • Married filing jointly.
You will have to pay the penalty if you filed theft, visit IRS.gov/IdentityTheft to learn what • Married filing separately.
this kind of return or submission based on a friv- steps you should take. • Head of household.
olous position or a desire to delay or interfere For more information, see Pub. 5027.
with the administration of federal tax laws. This • Qualifying surviving spouse.
includes altering or striking out the preprinted All taxpayers are now eligible for an
language above the space provided for your TIP Identity Protection Personal Identifica- If more than one filing status applies to
signature. tion Number (IP PIN). For more infor- TIP you, choose the one that will give you
This penalty is added to any other penalty mation, see Pub. 5477. To apply for an IP PIN, the lowest tax.
provided by law. go to IRS.gov/IPPIN and use the Get an IP PIN You must determine your filing status before
tool. you can determine whether you must file a tax
Fraud. If there is any underpayment of tax on Victims of identity theft who are experienc- return (chapter 1), your standard deduction
your return due to fraud, a penalty of 75% of the ing economic harm or a systemic problem, or (chapter 10), and your tax (chapter 11). You
underpayment due to fraud will be added to are seeking help in resolving tax problems that also use your filing status to determine whether
your tax. have not been resolved through normal chan- you are eligible to claim certain deductions and
Joint return. The fraud penalty on a joint re- nels, may be eligible for Taxpayer Advocate credits.
turn doesn't apply to a spouse unless some part Service (TAS) assistance. You can reach TAS
of the underpayment is due to the fraud of that by calling the National Taxpayer Advocate help- Useful Items
spouse. line at 877-777-4778 or 800-829-4059 (TTY/ You may want to see:
TDD). Deaf or hard-of-hearing individuals can
Failure to supply SSN. If you don't include also contact the IRS through the Telecommuni- Publication
your SSN or the SSN of another person where cations Relay Services (TRS) at FCC.gov/TRS.
required on a return, statement, or other docu- 3 3 Armed Forces’ Tax Guide
ment, you will be subject to a penalty of $50 for Protect yourself from suspicious emails
each failure. You will also be subject to a pen- or phishing schemes. Phishing is the creation 501 501 Dependents, Standard Deduction,
alty of $50 if you don't give your SSN to another and use of email and websites designed to and Filing Information
Publication 17 (2023) Chapter 2 Filing Status 21

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     503 503 Child and Dependent Care Expenses            your  tax  year,  you  and  your  spouse  meet  any      If you and your spouse decide to file a joint 
     519 519 U.S. Tax Guide for Aliens                    one of the following tests.                              return,  your  tax  may  be  lower  than  your  com-
     555 555 Community Property                           1. You are married and living together.                  bined tax for the other filing statuses. Also, your 
                                                                                                                   standard deduction (if you don’t itemize deduc-
     559 559 Survivors, Executors, and                    2. You are living together in a common law               tions)  may  be  higher,  and  you  may  qualify  for 
         Administrators                                         marriage recognized in the state where             tax benefits that don’t apply to other filing sta-
                                                                you now live or in the state where the com-        tuses.
     596 596 Earned Income Credit (EIC)                         mon law marriage began.                            How to file. On Form 1040 or 1040-SR, show 
     925 925 Passive Activity and At-Risk Rules           3. You are married and living apart, but not             your  filing  status  as  married  filing  jointly  by 
     971 971 Innocent Spouse Relief                             legally separated under a decree of di-            checking  the  “Married  filing  jointly”  box  on  the 
                                                                vorce or separate maintenance.                     Filing Status line near the top of the form. Use 
For these and other useful items, go to IRS.gov/                                                                   the Married filing jointly column of the Tax Table, 
Forms.                                                    4. You are separated under an interlocutory              or  Section  B  of  the  Tax  Computation  Work-
                                                                (not final) decree of divorce.                     sheet, to figure your tax.
Marital Status                                            Spouse  died  during  the  year.         If  your              If  you  and  your  spouse  each  have  in-
                                                          spouse  died  during  the  year,  you  are  consid-      TIP   come, you may want to figure your tax 
In  general,  your  filing  status  depends  on           ered married for the whole year for filing status              both on a joint return and on separate 
whether you are considered unmarried or mar-              purposes.                                                returns  (using  the  filing  status  of  married  filing 
ried.                                                     If  you  didn't  remarry  before  the  end  of  the      separately).  You  can  choose  the  method  that 
Unmarried  persons.      You  are  considered  un-        tax year, you can file a joint return for yourself       gives the two of you the lower combined tax un-
married for the whole year if, on the last day of         and  your  deceased  spouse.  For  the  next  2          less you are required to file separately.
your tax year, you are either:                            years, you may be entitled to the special bene-
                                                          fits  described  later  under Qualifying  Surviving      Spouse  died. If  your  spouse  died  during  the 
•  Unmarried, or                                          Spouse.                                                  year, you are considered married for the whole 
•  Legally separated from your spouse under               If  you  remarried  before  the  end  of  the  tax       year  and  can  choose  married  filing  jointly  as 
   a divorce or separate maintenance decree.              year,  you  can  file  a  joint  return  with  your  new your  filing  status.  See Spouse  died  during  the 
                                                          spouse. Your deceased spouse's filing status is          year under Married persons, earlier, for more in-
State law governs whether you are married                 married filing separately for that year.                 formation.
or legally separated under a divorce or separate 
maintenance decree.                                       Married  persons  living  apart.     If  you  live       If  your  spouse  died  in  2024  before  filing  a 
                                                          apart from your spouse and meet certain tests,           2023  return,  you  can  choose  married  filing 
Divorced  persons.       If  you  are  divorced  un-      you  may  be  able  to  file  as  head  of  household    jointly as your filing status on your 2023 return.
der  a  final  decree  by  the  last  day  of  the  year, even if you aren't divorced or legally separated.        Divorced persons.  If you are divorced under a 
you  are  considered  unmarried  for  the  whole          If  you  qualify  to  file  as  head  of  household  in- final decree by the last day of the year, you are 
year.                                                     stead of married filing separately, your standard        considered  unmarried  for  the  whole  year  and 
Divorce and remarriage.        If you obtain a di-        deduction will be higher. Also, your tax may be          you can’t choose married filing jointly as your fil-
vorce for the sole purpose of filing tax returns as       lower, and you may be able to claim the earned           ing status.
unmarried individuals, and at the time of divorce         income  credit  (EIC).  See   Head  of  Household, 
you intend to and do, in fact, remarry each other         later.
in the next tax year, you and your spouse must                                                                     Filing a Joint Return
file as married individuals in both years.
                                                          Single                                                   Both  you  and  your  spouse  must  include  all  of 
Annulled  marriages.          If  you  obtain  a  court                                                            your  income  and  deductions  on  your  joint  re-
decree of annulment, which holds that no valid            Your filing status is single if you are considered       turn.
marriage  ever  existed,  you  are  considered  un-       unmarried and you don’t qualify for another fil-
married even if you filed joint returns for earlier       ing status. To determine your marital status, see        Accounting period. Both of you must use the 
years. File Form 1040-X, Amended U.S. Individ-            Marital Status, earlier.                                 same accounting period, but you can use differ-
                                                                                                                   ent accounting methods. See Accounting Peri-
ual Income Tax Return, claiming single or head            Spouse  died  before  January  1,  2023.    Your         ods and Accounting Methods in chapter 1.
of household status for all tax years that are af-        filing  status  may  be  single  if  your  spouse  died 
fected by the annulment and not closed by the             before January 1, 2023, and you didn't remarry           Joint responsibility. Both of you may be held 
statute of limitations for filing a tax return. Gen-      before the end of 2023. You may, however, be             responsible,  jointly  and  individually,  for  the  tax 
erally, for a credit or refund, you must file Form        able  to  use  another  filing  status  that  will  give and any interest or penalty due on your joint re-
1040-X within 3 years (including extensions) af-          you  a  lower  tax.  See Head  of  Household  and        turn. This means that if one spouse doesn't pay 
ter  the  date  you  filed  your  original  return  or    Qualifying Surviving Spouse, later, to see if you        the  tax  due,  the  other  may  have  to.  Or,  if  one 
within  2  years  after  the  date  you  paid  the  tax,  qualify.                                                 spouse  doesn't  report  the  correct  tax,  both 
whichever is later. If you filed your original return                                                              spouses may be responsible for any additional 
early (for example, March 1), your return is con-         How to file. On Form 1040 or 1040-SR, show               taxes assessed by the IRS. One spouse may be 
sidered  filed  on  the  due  date  (generally  April     your filing status as single by checking the “Sin-       held responsible for all the tax due even if all the 
15). However, if you had an extension to file (for        gle” box on the Filing Status line near the top of       income was earned by the other spouse.
example, until October 15) but you filed earlier          the form. Use the Single column of the Tax Ta-           You may want to file separately if:
and we received it on July 1, your return is con-         ble, or Section A of the Tax Computation Work-
sidered filed on July 1.                                  sheet, to figure your tax.                               •    You believe your spouse isn't reporting all 
                                                                                                                        of their income, or
Head  of  household  or  qualifying  surviv-
ing  spouse. If  you  are  considered  unmarried,         Married Filing Jointly                                   •    You don’t want to be responsible for any 
you may be able to file as head of household or                                                                         taxes due if your spouse doesn't have 
as  qualifying  surviving  spouse.  See Head  of          You can choose married filing jointly as your fil-            enough tax withheld or doesn't pay enough 
Household  and Qualifying  Surviving  Spouse,             ing  status  if  you  are  considered  married  and           estimated tax.
later, to see if you qualify.                             both you and your spouse agree to file a joint re-       Divorced taxpayer.         You may be held jointly 
                                                          turn. On a joint return, you and your spouse re-         and individually responsible for any tax, interest, 
Married  persons. If  you  are  considered  mar-          port  your  combined  income  and  deduct  your          and penalties due on a joint return filed before 
ried, you and your spouse can file a joint return         combined  allowable  expenses.  You  can  file  a        your divorce. This responsibility may apply even 
or separate returns.                                      joint return even if one of you had no income or         if  your  divorce  decree  states  that  your  former 
Considered  married.          You  are  considered        deductions.
married for the whole year if, on the last day of 
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spouse will be responsible for any amounts due          spouse. You can use a POA that states that you             Special Rules
on previously filed joint returns.                      have been granted authority to sign the return, 
                                                        or you can use Form 2848. Part I of Form 2848              If you choose married filing separately as your 
Relief  from  joint  responsibility.  In  some          must state that you are granted authority to sign          filing  status,  the  following  special  rules  apply. 
cases, one spouse may be relieved of joint re-          the return.                                                Because of these special rules, you usually pay 
sponsibility for tax, interest, and penalties on a 
joint  return  for  items  of  the  other  spouse  that Nonresident alien or dual-status alien.         Gen-       more  tax  on  a  separate  return  than  if  you  use 
were incorrectly reported on the joint return. You      erally, a married couple can’t file a joint return if      another filing status you qualify for.
can ask for relief no matter how small the liabil-      either one is a nonresident alien at any time dur-         1. Your tax rate is generally higher than on a 
ity.                                                    ing the tax year. However, if one spouse was a                 joint return.
There are three types of relief available.              nonresident alien or dual-status alien who was 
1. Innocent spouse relief.                              married to a U.S. citizen or resident alien at the         2. Your exemption amount for figuring the al-
                                                        end of the year, the spouses can choose to file                ternative minimum tax is half that allowed 
2. Separation of liability (available only to           a joint return. If you do file a joint return, you and         on a joint return.
     joint filers whose spouse has died, or who         your spouse are both treated as U.S. residents             3. You can’t take the credit for child and de-
     are divorced, legally separated, or haven't        for  the  entire  tax  year.  See  chapter  1  of  Pub.        pendent care expenses in most cases, 
     lived together for the 12 months ending on         519.                                                           and the amount you can exclude from in-
     the date the election for this relief is filed).                                                                  come under an employer's dependent 
3. Equitable relief.                                    Married Filing                                                 care assistance program is limited to 
                                                                                                                       $2,500 (instead of $5,000 on a joint re-
You must file Form 8857, Request for Inno-              Separately                                                     turn). However, if you are legally separated 
cent  Spouse  Relief,  to  request  relief  from  joint                                                                or living apart from your spouse, you may 
responsibility. Pub. 971 explains these kinds of        You  can  choose  married  filing  separately  as              be able to file a separate return and still 
relief and who may qualify for them.                    your  filing  status  if  you  are  married.  This  filing     take the credit. For more information about 
                                                        status may benefit you if you want to be respon-               these expenses, the credit, and the exclu-
Signing a joint return.  For a return to be con-        sible only for your own tax or if it results in less           sion, see What’s Your Filing Status? in 
sidered a joint return, both spouses must gener-        tax than filing a joint return.                                Pub. 503.
ally sign the return.
Spouse  died  before  signing.        If  your             If you and your spouse don’t agree to file a            4. You can’t take the EIC, unless you have a 
spouse died before signing the return, the exec-        joint  return,  you  must  use  this  filing  status  un-      qualifying child and meet certain other re-
utor  or  administrator  must  sign  the  return  for   less  you  qualify  for  head  of  household  status,          quirements. See Pub. 596.
your spouse. If neither you nor anyone else has         discussed later.                                           5. You can’t take the exclusion or credit for 
yet  been  appointed  as  executor  or  administra-                                                                    adoption expenses in most cases.
tor, you can sign the return for your spouse and           You may be able to choose head of house-
enter  “Filing  as  surviving  spouse”  in  the  area   hold  filing  status  if  you  are  considered  unmar-     6. You can’t take the education credits (the 
where you sign the return.                              ried  because  you  live  apart  from  your  spouse            American opportunity credit and lifetime 
                                                        and  meet  certain  tests  (explained  under    Head           learning credit), or the deduction for stu-
Spouse away from home.     If your spouse is            of Household, later). This can apply to you even               dent loan interest.
away from home, you should prepare the return,          if you aren't divorced or legally separated. If you        7. You can’t exclude any interest income from 
sign it, and send it to your spouse to sign so that     qualify to file as head of household, instead of               qualified U.S. savings bonds you used for 
it can be filed on time.                                as  married  filing  separately,  your  tax  may  be           higher education expenses.
Injury or disease prevents signing.   If your           lower,  you  may  be  able  to  claim  the  EIC  and 
spouse can’t sign because of disease or injury          certain  other  benefits,  and  your  standard  de-        8. If you lived with your spouse at any time 
and tells you to sign for them, you can sign your       duction  will  be  higher.  The  head  of  household           during the tax year:
spouse’s  name  in  the  proper  space  on  the  re-    filing status allows you to choose the standard                a. You can’t claim the credit for the eld-
turn  followed  by  the  words  “By  (your  name),      deduction even if your spouse chooses to item-                 erly or the disabled, and
Spouse.” Be sure to sign in the space provided          ize  deductions.  See Head  of  Household,  later, 
for  your  signature.  Attach  a  dated  statement,     for more information.                                          b. You must include in income a greater 
                                                                                                                       percentage (up to 85%) of any social 
signed  by  you,  to  the  return.  The  statement            You  will  generally  pay  more  combined                security or equivalent railroad retire-
should  include  the  form  number  of  the  return     TIP   tax on separate returns than you would                   ment benefits you received.
you are filing, the tax year, and the reason your             on  a  joint  return  for  the  reasons  listed 
spouse can’t sign; it should also state that your       under Special Rules, later. However, unless you            9. The following credits and deductions are 
spouse has agreed to your signing for them.             are required to file separately, you should figure             reduced at income levels half of those for 
Signing as guardian of spouse.        If you are        your tax both ways (on a joint return and on sep-              a joint return.
the guardian of your spouse who is mentally in-         arate returns). This way, you can make sure you                a. The child tax credit and the credit for 
competent,  you  can  sign  the  return  for  your      are using the filing status that results in the low-           other dependents.
spouse as guardian.                                     est combined tax. When figuring the combined 
                                                        tax of a married couple, you may want to con-                  b. The retirement savings contributions 
Spouse  in  combat  zone.  You  can  sign  a            sider state taxes as well as federal taxes.                    credit.
joint return for your spouse if your spouse can’t                                                                  10. Your capital loss deduction limit is $1,500 
sign because they are serving in a combat zone          How  to  file. If  you  file  a  separate  return,  you        (instead of $3,000 on a joint return). 
(such as the Persian Gulf Area, Serbia, Monte-          generally report only your own income, credits, 
negro,  Albania,  or  Afghanistan),  even  if  you      and deductions.                                            11. If your spouse itemizes deductions, you 
don’t  have  a  power  of  attorney  or  other  state-     Select  this  filing  status  by  checking  the             can’t claim the standard deduction. If you 
ment. Attach a signed statement to your return          “Married filing separately” box on the Filing Sta-             can claim the standard deduction, your ba-
explaining that your spouse is serving in a com-        tus line near the top of Form 1040 or 1040-SR.                 sic standard deduction is half of the 
bat  zone.  For  more  information  on  special  tax    Enter your spouse's full name and SSN or ITIN                  amount allowed on a joint return.
rules for persons who are serving in a combat           in  the  entry  space  at  the  bottom  of  the Filing     Adjusted  gross  income  (AGI)  limits.    If  your 
zone, or who are in missing status as a result of       Status section. If your spouse doesn't have and            AGI on a separate return is lower than it would 
serving in a combat zone, see Pub. 3.                   isn't  required  to  have  an  SSN  or  ITIN,  enter       have been on a joint return, you may be able to 
Power of attorney.       In order for you to sign a     “NRA” in the space for your spouse's SSN. Use              deduct  a  larger  amount  for  certain  deductions 
return  for  your  spouse  in  any  of  these  cases,   the Married filing separately column of the Tax            that are limited by AGI, such as medical expen-
you must attach to the return a power of attor-         Table,  or  Section  C  of  the  Tax  Computation          ses.
ney  (POA)  that  authorizes  you  to  sign  for  your  Worksheet, to figure your tax.

Publication 17 (2023)                                         Chapter 2       Filing Status                                                                        23

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Individual  retirement  arrangements  (IRAs).         2. You paid more than half of the cost of                not  for  other  purposes,  such  as  claiming  the 
You may not be able to deduct all or part of your     keeping up a home for the year.                          EIC. Different tests apply depending on the tax 
contributions to a traditional IRA if you or your     3. A qualifying person lived with you in the             benefit you claim.
spouse was covered by an employee retirement          home for more than half the year (except                         If you were considered married for part 
plan at work during the year. Your deduction is       for temporary absences, such as school).                 !       of  the  year  and  lived  in  a community 
reduced  or  eliminated  if  your  income  is  more   However, if the qualifying person is your                CAUTION property state (listed earlier under Mar-
than  a  certain  amount.  This  amount  is  much     dependent parent, your dependent parent                  ried Filing Separately), special rules may apply 
lower for married individuals who file separately     doesn't have to live with you. See Special               in determining your income and expenses. See 
and lived together at any time during the year.       rule for parent, later, under Qualifying Per-            Pub. 555 for more information.
For more information, see How Much Can You            son.
Deduct in chapter 9.                                                                                           Nonresident  alien  spouse.     You  are  consid-
Rental  activity  losses. If  you  actively  partici-         If you qualify to file as head of house-         ered unmarried for head of household purposes 
pated in a passive rental real estate activity that   TIP     hold, your tax rate will usually be lower        if  your  spouse  was  a  nonresident  alien  at  any 
produced a loss, you can generally deduct the                 than the rates for single or married fil-        time  during  the  year  and  you  don’t  choose  to 
loss  from  your  nonpassive  income,  up  to         ing  separately.  You  will  also  receive  a  higher    treat  your  nonresident  spouse  as  a  resident 
$25,000.  This  is  called  a  special  allowance.    standard deduction than if you file as single or         alien.  However,  your  spouse  isn't  a  qualifying 
However,  married  persons  filing  separate  re-     married filing separately.                               person  for  head  of  household  purposes.  You 
turns who lived together at any time during the                                                                must have another qualifying person and meet 
year can’t claim this special allowance. Married      How  to  file. Indicate  your  choice  of  this  filing  the  other  tests  to  be  eligible  to  file  as  head  of 
persons filing separate returns who lived apart       status by checking the “Head of household” box           household. 
at all times during the year are each allowed a       on  the Filing  Status  line  near  the  top  of  Form 
$12,500 maximum special allowance for losses          1040 or 1040-SR. If the child who qualifies you          Choice  to  treat  spouse  as  resident.     You 
from  passive  real  estate  activities.  See Rental  for  this  filing  status  isn't  claimed  as  your  de- are  considered  married  if  you  choose  to  treat 
Activities in Pub. 925 for more information.          pendent  in  the Dependents  section  of  Form           your spouse as a resident alien. See chapter 1 
                                                      1040 or 1040-SR, enter the child's name in the           of Pub. 519.
Community  property  states. If  you  live  in  a     entry  space  at  the  bottom  of  the Filing  Status 
community  property  state  and  file  separately,    section.  Use  the Head  of  a  household  column 
your  income  may  be  considered  separate  in-      of the Tax Table, or Section D of the Worksheet,         Keeping Up a Home
come or community income for income tax pur-          to figure your tax.
poses.  Community  property states include  Ari-                                                               To  qualify  for  head  of  household  status,  you 
zona, California, Idaho, Louisiana, Nevada, New                                                                must pay more than half of the cost of keeping 
Mexico,  Texas,  Washington,  and  Wisconsin.         Considered Unmarried                                     up  a  home  for  the  year.  You  can  determine 
                                                                                                               whether you paid more than half of the cost of 
See Pub. 555 for more information.                    To  qualify  for  head  of  household  status,  you      keeping up a home by using Worksheet 2-1.
                                                      must be either unmarried or considered unmar-
Joint Return After                                    ried on the last day of the year. You are consid-        Costs  you  include.  Include  in  the  cost  of 
Separate Returns                                      ered unmarried on the last day of the tax year if        keeping  up  a  home  expenses,  such  as  rent, 
You can change your filing status from a sepa-        you meet all of the following tests.                     mortgage  interest,  real  estate  taxes,  insurance 
rate return to a joint return by filing an amended    1. You file a separate return. A separate re-            on the home, repairs, utilities, and food eaten in 
return using Form 1040-X.                             turn includes a return claiming married fil-             the home.
You  can  generally  change  to  a  joint  return     ing separately, single, or head of house-                Costs  you  don’t  include.  Don’t  include  the 
any time within 3 years from the due date of the      hold filing status.                                      costs of clothing, education, medical treatment, 
separate return or returns. This doesn't include      2. You paid more than half of the cost of                vacations, life insurance, or transportation. Also 
any extensions. A separate return includes a re-      keeping up your home for the tax year.                   don’t include the value of your services or those 
turn filed by you or your spouse claiming mar-                                                                 of a member of your household.
ried filing separately, single, or head of house-     3. Your spouse didn't live in your home during 
hold filing status.                                   the last 6 months of the tax year. Your 
                                                      spouse is considered to live in your home                Qualifying Person
                                                      even if your spouse is temporarily absent 
Separate Returns After                                due to special circumstances. See Tempo-                 See Table 2-1 to see who is a qualifying person. 
Joint Return                                          rary absences under Qualifying Person,                   Any  person  not  described  in Table  2-1  isn't  a 
Once you file a joint return, you can’t choose to     later.                                                   qualifying person.
file separate returns for that year after the due     4. Your home was the main home of your                   Example  1—Child.     Your  unmarried  child 
date of the return.                                   child, stepchild, or foster child for more               lived with you all year and was 18 years old at 
Exception. A personal representative for a de-        than half the year. (See Home of qualifying              the  end  of  the  year.  Your  child  didn't  provide 
cedent  can  change  from  a  joint  return  elected  person under Qualifying Person, later, for               more than half of their own support and doesn't 
by the surviving spouse to a separate return for      rules applying to a child's birth, death, or             meet the tests to be a qualifying child of anyone 
the decedent. The personal representative has         temporary absence during the year.)                      else.  As  a  result,  this  child  is  your  qualifying 
1 year from the due date (including extensions)       5. You must be able to claim the child as a              child  (see Qualifying  Child  in  chapter  3)  and, 
of the return to make the change. See Pub. 559        dependent. However, you meet this test if                because this child is single, this is your qualify-
for more information on filing a return for a dece-   you can’t claim the child as a dependent                 ing person for head of household purposes.
dent.                                                 only because the noncustodial parent can 
                                                      claim the child using the rules described in             Example  2—Child  who  isn't  qualifying 
Head of Household                                     Children of divorced or separated parents                person. The  facts  are  the  same  as  in Exam-
                                                      (or parents who live apart) under Qualify-               ple 1, except your child was 25 years old at the 
You may be able to file as head of household if       ing Child in chapter 3, or referred to in                end  of  the  year  and  your  child’s  gross  income 
you meet all of the following requirements.           Support Test for Children of Divorced or                 was  $5,000.  Because  your  child  doesn't  meet 
                                                      Separated Parents (or Parents Who Live                   the age test (explained under Qualifying Child in 
1. You are unmarried or considered unmar-             Apart) under Qualifying Relative in chap-                chapter 3), your child isn't your qualifying child. 
   ried on the last day of the year. See Marital      ter 3. The general rules for claiming a child            Because  the  child  doesn't  meet  the  gross  in-
   Status, earlier, and Considered Unmar-             as a dependent are explained in chapter 3.               come test (explained under   Qualifying Relative 
   ried, later.                                                                                                in chapter 3), the child isn't your qualifying rela-
                                                      You  may  be  considered  unmarried  for  the            tive.  As  a  result,  this  child  isn't  your  qualifying 
                                                      purpose of using head of household status but            person for head of household purposes.
24                                                            Chapter 2     Filing Status                                            Publication 17 (2023)

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Worksheet 2-1. Cost of Keeping in the entry space at the bottom of the Filing
Status section. Use the Married filing jointly col-
Up a Home Keep for Your Records umn of the Tax Table, or Section B of the Tax
Computation Worksheet, to figure your tax.
Amount Eligibility rules. You are eligible to file your
You Paid Total Cost 2023 return as a qualifying surviving spouse if
Property taxes $ $ you meet all of the following tests.
• You were entitled to file a joint return with
Mortgage interest expense your spouse for the year your spouse died.
Rent It doesn't matter whether you actually filed
Utility charges a joint return.
• Your spouse died in 2021 or 2022 and you
Repairs/Maintenance didn't remarry before the end of 2023.
Property insurance • You have a child or stepchild (not a foster
Food eaten in the home child) whom you can claim as a dependent
or could claim as a dependent except that,
Other household expenses for 2023:
Totals $ $ a. The child had gross income of
Minus total amount you paid ( ) $4,700 or more,
Amount others paid $ b. The child filed a joint return, or
c. You could be claimed as a depend-
If the total amount you paid is more than the amount others paid, you meet the ent on someone else’s return.
requirement of paying more than half of the cost of keeping up the home.
If the child isn't claimed as your de-
Example 3—Friend. Your friend lived with even if one or both of you are temporarily ab- pendent in the Dependents section on
you all year. Even though your friend may be sent from your home due to special circumstan- Form 1040 or 1040-SR, enter the child's
your qualifying relative if the gross income and ces, such as illness, education, business, vaca- name in the entry space at the bottom of
support tests (explained in chapter 3) are met, tion, military service, or detention in a juvenile the Filing Status section. If you don’t enter
your friend isn't your qualifying person for head facility. It must be reasonable to assume the ab- the name, it will take us longer to process
of household purposes because your friend isn't sent person will return to the home after the your return.
related to you in one of the ways listed under temporary absence. You must continue to keep • This child lived in your home all year, ex-
Relatives who don’t have to live with you in up the home during the absence. cept for temporary absences. See Tempo-
chapter 3. See Table 2-1. rary absences, earlier, under Head of
Adopted child or foster child. You may be
Example 4—Friend's child. The facts are eligible to file as head of household if the per- Household. There are also exceptions, de-
the same as in Example 3, except your friend's son who qualifies you for this filing status was scribed later, for a child who was born or
10-year-old child also lived with you all year. an adopted child or foster child. For more infor- died during the year and for a kidnapped
Your friend’s child isn't your qualifying child and, mation, see Pub. 501. child.
because the child is your friend's qualifying Kidnapped child. You may be eligible to file • You paid more than half of the cost of
child, your friend’s child isn't your qualifying rel- as head of household even if the child who is keeping up a home for the year. See Keep-
ative (see Not a Qualifying Child Test in chap- your qualifying person has been kidnapped. For ing Up a Home, earlier, under Head of
ter 3). As a result, your friend’s child isn't your more information, see Pub. 501. Household.
qualifying person for head of household purpo-
ses. Example. Your spouse died in 2021 and
Qualifying Surviving you haven’t remarried. During 2022 and 2023
Home of qualifying person. Generally, the you continued to keep up a home for you and
qualifying person must live with you for more Spouse your child who lives with you and whom you can
than half the year. claim as a dependent. For 2021, you were enti-
If your spouse died in 2023, you can use mar- tled to file a joint return for you and your de-
Special rule for parent. If your qualifying ried filing jointly as your filing status for 2023 if ceased spouse. For 2022 and 2023, you can file
person is your parent, you may be eligible to file you otherwise qualify to use that status. The as qualifying surviving spouse. After 2023, you
as head of household even if your parent year of death is the last year for which you can can file as head of household if you qualify.
doesn't live with you. However, you must be file jointly with your deceased spouse. See Mar-
able to claim your parent as a dependent. Also, ried Filing Jointly, earlier. Death or birth. You may be eligible to file as a
qualifying surviving spouse if the child who
you must pay more than half of the cost of keep- You may be eligible to use qualifying surviv- qualifies you for this filing status is born or dies
ing up a home that was the main home for the ing spouse as your filing status for 2 years fol- during the year. You must have provided more
entire year for your parent. lowing the year your spouse died. For example, than half of the cost of keeping up a home that
If you pay more than half of the cost of keep- if your spouse died in 2022, and you haven't re- was the child's main home during the entire part
ing your parent in a rest home or home for the married, you may be able to use this filing status of the year the child was alive.
elderly, that counts as paying more than half of for 2023 and 2024.
the cost of keeping up your parent's main home. Adopted child. You may be eligible to file as a
This filing status entitles you to use joint re- qualifying surviving spouse if the child who
Death or birth. You may be eligible to file as turn tax rates and the highest standard deduc- qualifies you for this filing status you adopted in
head of household even if the individual who tion amount (if you don’t itemize deductions). It 2023 or was lawfully placed with you for legal
qualifies you for this filing status is born or dies doesn't entitle you to file a joint return. adoption by you in 2023. The child is consid-
during the year. If the individual is your qualify-
ing child, the child must have lived with you for How to file. Indicate your choice of this filing ered to have lived with you for all of 2023 if your
more than half the part of the year the child was status by checking the “Qualifying surviving main home was this child’s main home for the
alive. If the individual is anyone else, see Pub. spouse” box on the Filing Status line near the entire time since this child was adopted or
501 for more information. top of Form 1040 or 1040-SR. If the child who placed with you in 2023.
qualifies you for this filing status isn’t claimed as Kidnapped child. You may be eligible to file as
Temporary absences. You and your quali- your dependent in the Dependents section of a qualifying surviving spouse even if the child
fying person are considered to live together Form 1040 or 1040-SR, enter the child’s name
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Table 2-1. Who Is a Qualifying Person Qualifying You To File as Head of Household?1
            Caution. See the text of this chapter for the other requirements you must meet to claim head of household 
            filing status.

IF the person is your . . .                                    AND . . .                                                               THEN that person is . . .
qualifying child (such as a son,                               the child is single                                                     a qualifying person, whether or 
daughter, or grandchild who lived with                                                                                                 not the child meets the Citizen or 
you more than half the year and meets                                                                                                  Resident Test in chapter 3.
certain other tests)2
                                                               the child is married and you can claim the                              a qualifying person.
                                                               child as a dependent
                                                               the child is married and you can’t claim the                            not a qualifying person.3
                                                               child as a dependent
qualifying relative  who is your father or 4                   you can claim your parent as a dependent5                               a qualifying person.6

mother                                                         you can’t claim your parent as a dependent                              not a qualifying person.
qualifying relative  other than your father 4                  your relative lived with you more than half                             a qualifying person.
or mother (such as a grandparent,                              the year, and your relative is related to you in 
brother, or sister who meets certain                           one of the ways listed under Relatives who 
tests)                                                         don’t have to live with you in chapter 3 and 
                                                               you can claim your relative as a dependent5

                                                               your relative didn't live with you more than                            not a qualifying person.
                                                               half the year
                                                               your relative isn't related to you in one of the                        not a qualifying person.
                                                               ways listed under Relatives who don’t have 
                                                               to live with you in chapter 3 and is your 
                                                               qualifying relative only because your relative 
                                                               lived with you all year as a member of your 
                                                               household
                                                               you can’t claim your relative as a dependent                            not a qualifying person.

1 A person can’t qualify more than one taxpayer to use the head of household filing status for the year.
2 The term “qualifying child” is defined in chapter 3. Note. If you are a noncustodial parent, the term “qualifying child” for head of household filing status doesn't include a child who is your 
qualifying child only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. If you are the 
custodial parent and those rules apply, the child is generally your qualifying child for head of household filing status even though the child isn't a qualifying child you can claim as a 
dependent.
3 This person is a qualifying person if the only reason you can’t claim the person as a dependent is that you, or your spouse if filing jointly, can be claimed as a dependent on another 
taxpayer’s return.
4 The term “qualifying relative” is defined in chapter 3.
5 If you can claim a person as a dependent only because of a multiple support agreement, that person isn't a qualifying person. See Multiple Support Agreement in chapter 3.
6 See Special rule for parent under Qualifying Person, earlier.

who qualifies you for this filing status has been                                                                               Useful Items
kidnapped. See Pub. 501 for more information.                                                                                   You may want to see:
        As  mentioned  earlier,  the  filing  status           3.
                                                                                                                                Publication
 !      qualifying surviving spouse is available 
CAUTION for only 2 years following the year your 
                                                                                                                                          501 
spouse died.                                                                                                                          501     Dependents, Standard Deduction, 
                                                                                                                                          and Filing Information
                                                               Dependents
                                                                                                                                      503 503 Child and Dependent Care Expenses
                                                                                                                                      526 526 Charitable Contributions
                                                               Introduction
                                                               This chapter discusses the following topics.                     Form (and Instructions)
                                                               • Dependents—You can generally claim                                   2120    2120 Multiple Support Declaration
                                                                 your qualifying child or qualifying relative                         8332    8332 Release/Revocation of Release of 
                                                                 as a dependent.
                                                                                                                                          Claim to Exemption for Child by 
                                                               • Social security number (SSN) requirement                                 Custodial Parent
                                                                 for dependents—You must list the SSN of 
                                                                 any person you claim as a dependent.
                                                                                                                                Dependents
                                                               How to claim dependents. On page 1 of your 
                                                               Form 1040 or 1040-SR, enter the names of your                    The term “dependent” means:
                                                               dependents in the Dependents section.
                                                                                                                                •   A qualifying child, or
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Table 3-1. Overview of the Rules for Claiming a Dependent
           Caution. This table is only an overview of the rules. For details, see the rest of this chapter.

  • You can’t claim any dependents if you (or your spouse if filing jointly) could be claimed as a dependent by another taxpayer, 
    unless that taxpayer files a return only to claim a refund of withheld income tax or estimated tax paid.

  • You can’t claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of 
    withheld income tax or estimated tax paid.

  • You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of 
    Canada or Mexico.1

  • You can’t claim a person as a dependent unless that person is your qualifying child or qualifying relative.

                  Tests To Be a Qualifying Child                                            Tests To Be a Qualifying Relative
  1. The child must be your son, daughter, stepchild, foster child,            1. The person can’t be your qualifying child or the 
    brother, sister, half brother, half sister, stepbrother, stepsister,          qualifying child of any other taxpayer.
    or a descendant of any of them.
                                                                               2. The person either (a) must be related to you in one of 
  2. The child must be (a) under age 19 at the end of the year and                the ways listed under Relatives who don’t have to live 
    younger than you (or your spouse if filing jointly); (b) under age            with you, or (b) must live with you all year as a member 
    24 at the end of the year, a student, and younger than you (or                of your household  (and your relationship must not 2
    your spouse if filing jointly); or (c) any age if permanently and             violate local law).
    totally disabled. 
                                                                               3. The person's gross income for the year must be less 
  3. The child must have lived with you for more than half of the                 than $4,700.3
    year.2

                                                                               4. You must provide more than half of the person's total 
  4. The child must not have provided more than half of the child’s               support for the year.4
    own support for the year.

  5. The child must not be filing a joint return for the year (unless 
    that joint return is filed only to get a refund of income tax 
    withheld or estimated tax paid).
If the child meets the rules to be a qualifying child of more than one 
person, generally only one person can actually treat the child as a 
qualifying child. See Qualifying Child of More Than One Person, 
later, to find out which person is the person entitled to claim the 
child as a qualifying child.
1 There is an exception for certain adopted children.
2 There are exceptions for temporary absences children who were born or died during the year, , children who were adopted or lawfully placed for 
adoption during the year, children who are eligible foster children placed during the year, children of divorced or separated parents (or parents who 
live apart), and kidnapped children.
3 There is an exception if the person is disabled and has income from a sheltered workshop.
4 There are exceptions for multiple support agreements children of divorced or separated parents (or parents who live apart),  , and kidnapped 
children.
• A qualifying relative.                             that child as a dependent. For more information,   1.   Dependent taxpayer test.
                                                     see chapter 14.
  The  terms  “qualifying  child”  and  “qualifying                                                     2.   Joint return test.
relative” are defined later.                         Credit for other dependents. You may be en-        3.   Citizen or resident test.
                                                     titled to a credit for other dependents for each 
  All the requirements for claiming a depend-        qualifying child who does not qualify you for the  These  three  tests  are  explained  in  detail 
ent are summarized in Table 3-1.                     child tax credit and for each qualifying relative. here.
                                                     For more information, see chapter 14.
Housekeepers,  maids,  or  servants.     If  these 
people  work  for  you,  you  can’t  claim  them  as                                                    Dependent Taxpayer Test
dependents.                                          Exceptions                                         If  you  can  be  claimed  as  a  dependent  by  an-
                                                                                                        other taxpayer, you can’t claim anyone else as a 
Child tax credit. You may be entitled to a child     Even if you have a qualifying child or qualifying  dependent. Even if you have a qualifying child 
tax credit for each qualifying child who was un-     relative, you can claim that person as a depend-
der age 17 at the end of the year if you claimed     ent only if these three tests are met.
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or qualifying relative, you can’t claim that person      and  the  child  lived  with  you  for  the  rest  of  the Age Test
as a dependent.                                          year after placement.                                      To meet this test, a child must be:
If  you  are  filing  a  joint  return  and  your        Child's place of residence.  Children are usu-             • Under age 19 at the end of the year and 
spouse can be claimed as a dependent by an-              ally citizens or residents of the country of their           younger than you (or your spouse if filing 
other taxpayer, you and your spouse can’t claim          parents.                                                     jointly);
any dependents on your joint return.
                                                         If  you  were  a  U.S.  citizen  when  your  child 
Exception. If you can be claimed as a depend-            was  born,  the  child  may  be  a  U.S.  citizen  and     • A student under age 24 at the end of the 
ent  by  another  taxpayer,  you  can  claim  some-      meet  this  test  even  if  the  other  parent  was  a       year and younger than you (or your spouse 
one else as a dependent if the person who can            nonresident  alien  and  the  child  was  born  in  a        if filing jointly); or
claim you (or your spouse if filing a joint return)      foreign country.                                           • Permanently and totally disabled at any 
as a dependent files a return only to claim a re-                                                                     time during the year, regardless of age.
fund of income tax withheld or estimated.                Foreign  students'  place  of  residence.   For-
                                                         eign  students  brought  to  this  country  under  a       Example.    Your  child  turned  19  on  Decem-
                                                         qualified international education exchange pro-
Joint Return Test                                        gram and placed in American homes for a tem-               ber 10. Unless this child was permanently and 
You generally can’t claim a married person as a          porary  period  generally  aren't  U.S.  residents         totally  disabled  or  a  student,  this  child  doesn't 
dependent if that person files a joint return.           and  don’t  meet  this  test.  You  can’t  claim  them     meet  the  age  test  because,  at  the  end  of  the 
                                                         as  dependents.  However,  if  you  provided  a            year, this child wasn't under age 19.
Exception. You  can  claim  a  person  as  a  de-        home for a foreign student, you may be able to             Child must be younger than you or spouse. 
pendent  who  files  a  joint  return  if  that  person  take  a  charitable  contribution  deduction.  See         To be your qualifying child, a child who isn't per-
and  that  person’s  spouse  file  the  joint  return    Expenses  Paid  for  Student  Living  With  You  in        manently and totally disabled must be younger 
only to claim a refund of income tax withheld or         Pub. 526.                                                  than  you.  However,  if  you  are  married  filing 
estimated tax paid.                                                                                                 jointly,  the  child  must  be  younger  than  you  or 
                                                         U.S.  national. A  U.S.  national  is  an  individual 
Example  1—Child  files  joint  return.        You       who, although not a U.S. citizen, owes their alle-         your  spouse  but  doesn't  have  to  be  younger 
supported your 18-year-old child who lived with          giance  to  the  United  States.  U.S.  nationals  in-     than both of you.
you all year while your child’s spouse was in the        clude  American  Samoans  and  Northern  Ma-               Example 1—Child not younger than you 
Armed  Forces.  Your  child’s  spouse  earned            riana  Islanders  who  chose  to  become  U.S.             or  spouse. Your  23-year-old  sibling,  who  is  a 
$35,000 for the year. The couple files a joint re-       nationals instead of U.S. citizens.                        student and unmarried, lives with you and your 
turn. You can’t claim your child as a dependent.                                                                    spouse, who provide more than half of your sib-
Example  2—Child  files  joint  return  only             Qualifying Child                                           ling’s  support.  Your  sibling  isn't  disabled.  Both 
                                                                                                                    you and your spouse are 21 years old, and you 
as  claim  for  refund  of  withheld  tax.     Your      Five  tests  must  be  met  for  a  child  to  be  your    file a joint return. Your sibling isn't your qualify-
18-year-old  child  and  your  child’s  17-year-old      qualifying child. The five tests are:                      ing child because your sibling isn't younger than 
spouse had $800 of wages from part-time jobs                                                                        you or your spouse.
and  no  other  income.  They  lived  with  you  all     1. Relationship,
year. Neither is required to file a tax return. They     2. Age,                                                    Example  2—Child  younger  than  your 
don’t have a child. Taxes were taken out of their                                                                   spouse but not younger than you.     The facts 
pay, so they filed a joint return only to get a re-      3. Residency,                                              are  the  same  as  in  Example  1,  except  your 
fund of the withheld taxes. The exception to the         4. Support, and                                            spouse is 25 years old. Because your sibling is 
joint  return  test  applies,  so  you aren't  disquali-                                                            younger  than  your  spouse,  and  you  and  your 
fied from claiming each of them as a dependent           5. Joint return.                                           spouse  are  filing  a  joint  return,  your  sibling  is 
just  because  they  file  a  joint  return.  You  can   These tests are explained next.                            your  qualifying  child,  even  though  your  sibling 
claim  each  of  them  as  a  dependent  if  all  the                                                               isn't younger than you.
other tests to do so are met.                                     If a child meets the five tests to be the 
                                                                  qualifying  child  of  more  than  one  per-      Student defined. To qualify as a student, your 
Example  3—Child  files  joint  return  to               CAUTION! son,  there  are  rules  you  must  use  to       child must be, during some part of each of any 5 
claim  American  opportunity  credit.          The       determine  which  person  can  actually  treat  the        calendar months of the year:
facts are the same as in Example 2, except no            child as a qualifying child. See Qualifying Child          1. A full-time student at a school that has a 
taxes were taken out of your child’s pay or your         of More Than One Person, later.                              regular teaching staff and course of study, 
child’s  spouse’s  pay.  However,  they  file  a  joint                                                               and a regularly enrolled student body at 
return  to  claim  an  American  opportunity  credit                                                                  the school; or
of  $124  and  get  a  refund  of  that  amount.  Be-    Relationship Test
cause  they  filed  a  joint  return  claiming  the      To meet this test, a child must be:                        2. A student taking a full-time, on-farm train-
American opportunity credit, they aren't filing it                                                                    ing course given by a school described in 
only  to  get  a  refund  of  income  tax  withheld  or  •  Your son, daughter, stepchild, or foster                  (1), or by a state, county, or local govern-
estimated tax paid. The exception to the joint re-          child, or a descendant (for example, your                 ment agency.
turn test doesn't apply, so you can’t claim either          grandchild) of any of them; or
of them as a dependent.                                  •  Your brother, sister, half brother, half sister,        The  5  calendar  months  don’t  have  to  be  con-
                                                            stepbrother, or stepsister, or a descendant             secutive.
Citizen or Resident Test                                    (for example, your niece or nephew) of any              Full-time  student.     A  full-time  student  is  a 
                                                            of them.
You generally can’t claim a person as a depend-                                                                     student who is enrolled for the number of hours 
ent unless that person is a U.S. citizen, U.S. res-      Adopted  child.  An  adopted  child  is  always            or courses the school considers to be full-time 
ident alien, U.S. national, or a resident of Can-        treated  as  your  own  child.  The  term  “adopted        attendance.
ada or Mexico. However, there is an exception            child” includes a child who was lawfully placed            School  defined.   A  school  can  be  an  ele-
for certain adopted children, as explained next.         with you for legal adoption.                               mentary school; a junior or senior high school; a 
Exception for adopted child.  If you are a U.S.          Foster child. A foster child is an individual who          college;  a  university;  or  a  technical,  trade,  or 
citizen or U.S. national who has legally adopted         is placed with you by an authorized placement              mechanical  school.  However,  an  on-the-job 
a  child  who  isn't  a  U.S.  citizen,  U.S.  resident  agency or by judgment, decree, or other order              training  course,  correspondence  school,  or 
alien, or U.S. national, this test is met if the child   of any court of competent jurisdiction.                    school  offering  courses  only  through  the  Inter-
lived with you as a member of your household                                                                        net doesn’t count as a school.
all year. This exception also applies if the child                                                                  Vocational  high  school  students.       Stu-
was lawfully placed with you for legal adoption                                                                     dents  who  work  on  “co-op”  jobs  in  private 
28                                                                 Chapter 3   Dependents                                                   Publication 17 (2023)

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industry as a part of a school's regular course of Children of divorced or separated parents another taxpayer, if eligible, can claim the child
classroom and practical training are considered (or parents who live apart). In most cases, for the earned income credit.
full-time students. because of the residency test, a child of di-
vorced or separated parents is the qualifying Custodial parent and noncustodial pa-
Permanently and totally disabled. Your child child of the custodial parent. However, the child rent. The custodial parent is the parent with
is permanently and totally disabled if both of the will be treated as the qualifying child of the non- whom the child lived for the greater number of
following apply. custodial parent if all four of the following state- nights during the year. The other parent is the
• Your child can’t engage in any substantial ments are true. noncustodial parent.
gainful activity because of a physical or If the parents divorced or separated during
mental condition. 1. The parents: the year and the child lived with both parents
• A doctor determines the condition has las- a. Are divorced or legally separated un- before the separation, the custodial parent is
ted or can be expected to last continuously der a decree of divorce or separate the one with whom the child lived for the greater
for at least a year or can lead to death. maintenance; number of nights during the rest of the year.
A child is treated as living with a parent for a
b. Are separated under a written separa- night if the child sleeps:
Residency Test tion agreement; or
• At that parent's home, whether or not the
To meet this test, your child must have lived with c. Lived apart at all times during the last parent is present; or
you for more than half the year. There are ex- 6 months of the year, whether or not In the company of the parent, when the
ceptions for temporary absences, children who they are or were married. •
child doesn't sleep at a parent's home (for
were born or died during the year, adopted or 2. The child received over half of the child’s example, the parent and child are on vaca-
foster children, kidnapped children, and chil- support for the year from the parents. tion together).
dren of divorced or separated parents.
3. The child is in the custody of one or both Equal number of nights. If the child lived
Temporary absences. Your child is consid- parents for more than half of the year. with each parent for an equal number of nights
ered to have lived with you during periods of during the year, the custodial parent is the pa-
time when one of you, or both, is temporarily 4. Either of the following statements is true.
rent with the higher AGI.
absent due to special circumstances such as: a. The custodial parent signs a written
• Illness, declaration, discussed later, that they December 31. The night of December 31 is
• Education, won't claim the child as a dependent treated as part of the year in which the night be-
for the year, and the noncustodial pa- gins. For example, the night of December 31,
• Business, rent attaches this written declaration 2023, is treated as part of 2023.
• Vacation, to their return. (If the decree or agree- Emancipated child. If a child is emancipa-
ment went into effect after 1984 and ted under state law, the child is treated as not
• Military service, or before 2009, see Post-1984 and living with either parent. See Examples 5 and .6
• Detention in a juvenile facility. pre-2009 divorce decree or separa-
tion agreement, later. If the decree or Absences. If a child wasn't with either pa-
Death or birth of child. A child who was born agreement went into effect after 2008, rent on a particular night (because, for example,
or died during the year is treated as having lived see Post-2008 divorce decree or sep- the child was staying at a friend's house), the
with you more than half of the year if your home aration agreement, later.) child is treated as living with the parent with
was the child's home more than half of the time whom the child normally would have lived for
the child was alive during the year. The same is b. A pre-1985 decree of divorce or sepa- that night, except for the absence. But if it can’t
true if the child lived with you more than half the rate maintenance or written separa- be determined with which parent the child nor-
year except for any required hospital stay follow- tion agreement that applies to 2023 mally would have lived or if the child wouldn’t
ing birth. states that the noncustodial parent have lived with either parent that night, the child
can claim the child as a dependent, is treated as not living with either parent that
Child born alive. You may be able to claim the decree or agreement wasn't night.
as a dependent a child born alive during the changed after 1984 to say the non-
year, even if the child lived only for a moment. custodial parent can’t claim the child Parent works at night. If, due to a parent's
State or local law must treat the child as having as a dependent, and the noncustodial nighttime work schedule, a child lives for a
been born alive. There must be proof of a live parent provides at least $600 for the greater number of days, but not nights, with the
birth shown by an official document, such as a child's support during the year. parent who works at night, that parent is treated
as the custodial parent. On a school day, the
birth certificate. The child must be your qualify- If statements (1) through (4) are all true, only child is treated as living at the primary resi-
ing child or qualifying relative, and all the other the noncustodial parent can: dence registered with the school.
tests to claim the child as a dependent must be
met. • Claim the child as a dependent; and
• Claim the child as a qualifying child for the Example 1—Child lived with one parent
Stillborn child. You can’t claim a stillborn child tax credit, the credit for other depend- for a greater number of nights. You and your
child as a dependent. ents, or the additional child tax credit. child’s other parent are divorced. In 2023, your
child lived with you 210 nights and with the
Adopted or foster child. You can treat your However, this doesn’t allow the noncustodial other parent 155 nights. You are the custodial
adopted child or foster child as meeting the res- parent to claim head of household filing status, parent.
idency test as follows if you adopted the child in the credit for child and dependent care expen-
2023, the child was lawfully placed with you for ses, the exclusion for dependent care benefits, Example 2—Child is away at camp. In
legal adoption by you in 2023, or the child was or the earned income credit. See Applying the 2023, your child lives with each parent for alter-
an eligible foster child placed with you during tiebreaker rules to divorced or separated pa- nate weeks. In the summer, your child spends 6
2023. This child is considered to have lived with rents (or parents who live apart), later. weeks at summer camp. During those 6 weeks,
you for more than half of 2023 if your main your child is treated as living with you for 3
home was this child’s main home for more than Example—Earned income credit. Even if weeks and with your child’s other parent, your
half the time since this child was adopted or statements (1) through (4) are all true and the ex-spouse, for 3 weeks because this is how
placed with you in 2023. custodial parent signs Form 8332 or a substan- long the child would have lived with each parent
Kidnapped child. You may be able to treat tially similar statement that the custodial parent if the child had not attended summer camp.
your child as meeting the residency test even if won’t claim the child as a dependent for 2023,
the child has been kidnapped. See Pub. 501 for this doesn’t allow the noncustodial parent to Example 3—Child lived same number of
details. claim the child as a qualifying child for the nights with each parent. Your child lived with
earned income credit. The custodial parent or you 180 nights during the year and lived the
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same number of nights with the child’s other pa- The noncustodial parent must attach all of child from a child placement agency are consid-
rent, your ex-spouse. Your AGI is $40,000. Your the following pages of the decree or agreement ered support provided by the agency. Similarly,
ex-spouse's AGI is $25,000. You are treated as to their tax return. payments you receive for the support of a foster
your child's custodial parent because you have • The cover page (write the other parent's child from a state or county are considered sup-
the higher AGI. SSN on this page). port provided by the state or county.
If you aren't in the trade or business of pro-
Example 4—Child is at parent’s home • The pages that include all of the informa- viding foster care and your unreimbursed
but with other parent. Your child normally tion identified in items (1) through (3) out-of-pocket expenses in caring for a foster
lives with you during the week and with the above. child were mainly to benefit an organization
child’s other parent, your ex-spouse, every other • The signature page with the other parent's qualified to receive deductible charitable contri-
weekend. You become ill and are hospitalized. signature and the date of the agreement. butions, the expenses are deductible as charita-
The other parent lives in your home with your ble contributions but aren't considered support
child for 10 consecutive days while you are in Post-2008 divorce decree or separation you provided. For more information about the
the hospital. Your child is treated as living with agreement. The noncustodial parent can’t at- deduction for charitable contributions, see Pub.
you during this 10-day period because your tach pages from the decree or agreement in- 526. If your unreimbursed expenses aren't de-
child was living in your home. stead of Form 8332 if the decree or agreement ductible as charitable contributions, they may
went into effect after 2008. The custodial parent qualify as support you provided.
Example 5—Child emancipated in May. must sign either Form 8332 or a similar state- If you are in the trade or business of provid-
Your child turned 18 in May 2023 and became ment whose only purpose is to release the cus- ing foster care, your unreimbursed expenses
emancipated under the law of the state where todial parent's claim to an exemption for a child, aren't considered support provided by you.
your child lives. As a result, your child isn't con- and the noncustodial parent must attach a copy
sidered in the custody of either parent for more to their return. The form or statement must re- Example 1. A foster child lived with a mar-
than half of the year. The special rule for chil- lease the custodial parent's claim to the child ried couple, the Smiths, for the last 3 months of
dren of divorced or separated parents doesn't without any conditions. For example, the re- the year. The Smiths cared for the foster child
apply. lease must not depend on the noncustodial pa- because they wanted to adopt the child (al-
rent paying support. though the child had not been placed with them
Example 6—Child emancipated in Au- for adoption). They didn't care for the foster
gust. Your child lives with you from January 1, The noncustodial parent must attach
child as a trade or business or to benefit the
2023, until May 31, 2023, and lives with the ! the required information even if it was agency that placed the foster child in their
child’s other parent, your ex-spouse, from June CAUTION filed with a return in an earlier year.
home. The Smiths' unreimbursed expenses
1, 2023, through the end of the year. Your child aren't deductible as charitable contributions but
turns 18 and is emancipated under state law on Revocation of release of claim to an ex-
August 1, 2023. Because your child is treated emption. The custodial parent can revoke a re- are considered support they provided for the
as not living with either parent beginning on Au- lease of claim to an exemption. For the revoca- foster child.
gust 1, your child is treated as living with you tion to be effective for 2023, the custodial parent Example 2. You provided $3,000 toward
the greater number of nights in 2023. You are must have given (or made reasonable efforts to your 10-year-old foster child's support for the
the custodial parent. give) written notice of the revocation to the non- year. The state government provided $4,000,
custodial parent in 2022 or earlier. The custo-
Written declaration. The custodial parent dial parent can use Part III of Form 8332 for this which is considered support provided by the
must use either Form 8332 or a similar state- purpose and must attach a copy of the revoca- state, not by the child. See Support provided by
ment (containing the same information required tion to their return for each tax year the custo- the state (welfare, food stamps, housing, etc.),
by the form) to make the written declaration to dial parent claims the child as a dependent as a later. Your foster child didn't provide more than
release a claim to an exemption for a child to result of the revocation. half of their own support for the year.
the noncustodial parent. Although the exemp- Scholarships. A scholarship received by a
tion amount is zero for tax year 2023, this re- Remarried parent. If you remarry, the sup- child who is a student isn't taken into account in
lease allows the noncustodial parent to claim port provided by your new spouse is treated as determining whether the child provided more
the child tax credit, additional child tax credit, provided by you. than half of their own support.
and credit for other dependents, if applicable,
for the child. The noncustodial parent must at- Parents who never married. This special
tach a copy of the form or statement to their tax rule for divorced or separated parents also ap- Joint Return Test (To Be a
return. plies to parents who never married and who Qualifying Child)
The release can be for 1 year, for a number lived apart at all times during the last 6 months
of specified years (for example, alternate of the year. To meet this test, the child can’t file a joint return
for the year.
years), or for all future years, as specified in the
declaration. Support Test (To Be a Qualifying Exception. An exception to the joint return test
applies if your child and the child’s spouse file a
Post-1984 and pre-2009 divorce decree Child) joint return only to claim a refund of income tax
or separation agreement. If the divorce de- To meet this test, the child can’t have provided withheld or estimated tax paid.
cree or separation agreement went into effect more than half of the child’s own support for the
after 1984 and before 2009, the noncustodial year. Example 1—Child files joint return. You
parent may be able to attach certain pages from This test is different from the support test to supported your 18-year-old child who lived with
the decree or agreement instead of Form 8332. be a qualifying relative, which is described later. you all year while your child’s spouse was in the
The decree or agreement must state all three of However, to see what is or isn't support, see Armed Forces. Your child’s spouse earned
the following. Support Test (To Be a Qualifying Relative), later. $35,000 for the year. The couple files a joint re-
1. The noncustodial parent can claim the If you aren't sure whether a child provided more turn so this child isn't your qualifying child.
child as a dependent without regard to any than half of their own support, you may find
condition, such as payment of support. Worksheet 3-1 helpful. Example 2—Child files joint return only
as a claim for refund of withheld tax. Your
2. The custodial parent won't claim the child Example. You provided $4,000 toward your 18-year-old child and your child’s 17-year-old
as a dependent for the year. 16-year-old child's support for the year and the spouse had $800 of wages from part-time jobs
3. The years for which the noncustodial pa- child provided $6,000. Your child provided more and no other income. They lived with you all
rent, rather than the custodial parent, can than half their own support. The child isn't your year. Neither is required to file a tax return. They
claim the child as a dependent. qualifying child. don’t have a child. Taxes were taken out of their
Foster care payments and expenses. Pay- pay so they filed a joint return only to get a re-
ments you receive for the support of a foster fund of the withheld taxes. The exception to the

30 Chapter 3 Dependents Publication 17 (2023)

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Worksheet 3-1. Worksheet for Determining Support                                                                                                               Keep for Your Records

                        Funds Belonging to the Person You Supported
1.  Enter the total funds belonging to the person you supported, including income received (taxable 
    and nontaxable) and amounts borrowed during the year, plus the amount in savings and other 
    accounts at the beginning of the year. Don’t include funds provided by the state; include those 
    amounts on line 23 instead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 1.   
2.  Enter the amount on line 1 that was used for the person's support . . . . . . . . . . . . . . . . . . . . . . . .                                          2.   
3.  Enter the amount on line 1 that was used for other purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      3.   
4.  Enter the total amount in the person's savings and other accounts at the end of the year . . . . . .                                                       4.   
5.  Add lines 2 through 4. (This amount should equal line 1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    5.   

            Expenses for Entire Household (where the person you supported lived)
6.  Lodging (complete line 6a or 6b):
    a. Enter the total rent paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             6a.  
    b. Enter the fair rental value of the home. If the person you supported owned the home, 
      also include this amount in line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      6b.  
7.  Enter the total food expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  7.   
8.  Enter the total amount of utilities (heat, light, water, etc., not included in line 6a or 6b) . . . . . . . .                                              8.   
9.  Enter the total amount of repairs (not included in line 6a or 6b) . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    9.   
10. Enter the total of other expenses. Don’t include expenses of maintaining the home, such as 
    mortgage interest, real estate taxes, and insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                10.  
11. Add lines 6a through 10. These are the total household expenses . . . . . . . . . . . . . . . . . . . . . . . .                                            11.  
12. Enter total number of persons who lived in the household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     12.  

                        Expenses for the Person You Supported
13. Divide line 11 by line 12. This is the person's share of the household expenses . . . . . . . . . . . . .                                                  13.  
14. Enter the person's total clothing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         14.  
15. Enter the person's total education expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            15.  
16. Enter the person's total medical and dental expenses not paid for or reimbursed by 
    insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      16.  
17. Enter the person's total travel and recreation expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  17.  
18. Enter the total of the person's other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           18.  
19. Add lines 13 through 18. This is the total cost of the person's support for the year . . . . . . . . . . .                                                 19.  

           Did the Person Provide More Than Half of the Person’s Own Support?
20. Multiply line 19 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 20.  
21. Enter the amount from line 2, plus the amount from line 6b if the person you supported owned 
    the home. This is the amount the person provided for their own support . . . . . . . . . . . . . . . . . . . .                                             21.  
22. Is line 21 more than line 20?
     
       No. You meet the support test for this person to be your qualifying child. If this person also meets the other tests to be a 
    qualifying child, stop here; don’t complete lines 23–26. Otherwise, go to line 23 and fill out the rest of the worksheet to 
    determine if this person is your qualifying relative. 
     
       Yes. You don’t meet the support test for this person to be either your qualifying child or your qualifying relative. Stop 
    here.
     
                                 Did You Provide More Than Half?
23. Enter the amount others provided for the person's support. Include amounts provided by state, 
    local, and other welfare societies or agencies. Don’t include any amounts included on 
    line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.  
24. Add lines 21 and 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            24.  
25. Subtract line 24 from line 19. This is the amount you provided for the person's support . . . . . . .                                                      25.  
26. Is line 25 more than line 20?
     
       Yes. You meet the support test for this person to be your qualifying relative.
     
       No. You don’t meet the support test for this person to be your qualifying relative. You can’t claim this person as a 
    dependent unless you can do so under a multiple support agreement, the support test for children of divorced or 
    separated parents (or parents who live apart), or the special rule for kidnapped children. See Multiple Support Agreement 
    or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart), or Kidnapped child under 
    Qualifying Relative.

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joint  return  test  applies,  so  this  child  may  be     whom the child lived for the longer period                is higher than yours, you can allow your parent 
your qualifying child if all the other tests are met.       of time during the year. If the child lived               to claim one or more of the children. For exam-
                                                            with each parent for the same amount of                   ple, if you claim one child, your parent can claim 
Example  3—Child  files  joint  return  to                  time, the IRS will treat the child as the qual-           the other two.
claim  American  opportunity  credit.           The         ifying child of the parent who had the 
facts are the same as in Example 2, except no               higher AGI for the year.                                  Example  5—Taxpayer  who  is  a  qualify-
taxes  were  taken  out  of  either  spouse’s  pay.         If no parent can claim the child as a qualify-            ing child. The facts are the same as in Exam-
However,  they  file  a  joint  return  to  claim  an     •                                                           ple  1,  except  you  are  only  18  years  old  and 
                                                            ing child, the child is treated as the qualify-
American opportunity credit of $124 and get a               ing child of the person who had the highest               didn't provide more than half of your own sup-
refund of that amount. Because they filed a joint           AGI for the year.                                         port for the year. This means you are your pa-
return claiming the American opportunity credit,                                                                      rent's  qualifying  child.  If  your  parent  can  claim 
they aren’t filing it only to get a refund of income      • If a parent can claim the child as a qualify-             you as a dependent, then you can’t claim your 
tax withheld or estimated tax paid. The excep-              ing child but no parent does so claim the                 child as a dependent because of the   Depend-
tion to the joint return test doesn't apply, so this        child, the child is treated as the qualifying             ent Taxpayer Test, explained earlier, unless your 
child isn't your qualifying child.                          child of the person who had the highest                   parent files a return only to claim a refund of in-
                                                            AGI for the year, but only if that person's               come tax withheld or estimated tax paid.
                                                            AGI is higher than the highest AGI of any of 
Qualifying Child of More Than One                           the child's parents who can claim the child.              Example       6—Separated parents.      You, 
Person                                                                                                                your spouse, and your 10-year-old child all lived 
                                                          Subject  to  these  tiebreaker  rules,  you  and 
        If your qualifying child isn't a qualifying       the other person may be able to choose which                in the United States for all of 2023. On August 
TIP     child of anyone else, this topic doesn't          of you claims the child as a qualifying child.              1, 2023, your spouse moved out of the house-
        apply  to  you  and  you  don’t  need  to                                                                     hold. In August and September, your child lived 
read about it. This is also true if your qualifying              You  may  be  able  to  qualify  for  the            with you. For the rest of the year, your child lived 
child isn't a qualifying child of anyone else ex-         TIP    earned  income  credit  under  the  rules            with your spouse, the child's other parent. Your 
cept your spouse with whom you plan to file a                    for taxpayers without a qualifying child             child is a qualifying child of both you and your 
joint return.                                             if you have a qualifying child for the earned in-           spouse  because  your  child  lived  with  each  of 
                                                          come credit who is claimed as a qualifying child            you  for  more  than  half  the  year  and  because 
        If  a  child  is  treated  as  the  qualifying    by another taxpayer. For more information, see              your  child  met  the  relationship,  age,  support, 
                                                          Pub. 596.                                                   and joint return tests for both of you. At the end 
CAUTION the  rules  for  children  of  divorced  or 
!       child  of  the  noncustodial  parent  under                                                                   of the year, you and your spouse still weren't di-
separated  parents  (or  parents  who  live  apart)       Example 1—Child lived with parent and                       vorced, legally separated, or separated under a 
described  earlier,  see Applying  the  tiebreaker        grandparent. You  and  your  3-year-old  child  J           written  separation  agreement,  so  the  rule  for 
rules  to  divorced  or  separated  parents  (or  pa-     lived with your parent all year. You are 25 years           children  of  divorced  or  separated  parents  (or 
rents who live apart), later.                             old and unmarried, and your AGI is $9,000. Your             parents who live apart) doesn't apply.
Sometimes,  a  child  meets  the  relationship,           parent's  AGI  is  $15,000.  Your  child’s  other  pa-      You  and  your  spouse  will  file  separate  re-
age, residency, support, and joint return tests to        rent  didn't  live  with  you  or  your  child.  You        turns. Your spouse agrees to let you treat your 
be a qualifying child of more than one person.            haven't  signed  Form  8332  (or  a  similar  state-        child  as  a  qualifying  child.  This  means,  if  your 
Although the child is a qualifying child of each of       ment).                                                      spouse doesn't claim your child as a qualifying 
these  persons,  generally  only  one  person  can        J is a qualifying child of both you and your                child,  you  can  claim  this  child  as  a  qualifying 
actually  treat  the  child  as  a  qualifying  child  to parent  because  J  meets  the  relationship,  age,         child  for  the  child  tax  credit  and  exclusion  for 
take  all  of  the  following  tax  benefits  (provided   residency,  support,  and  joint  return  tests  for        dependent care benefits (if you qualify for each 
the person is eligible for each benefit).                 both you and your parent. However, only one of              of those tax benefits). However, you can’t claim 
                                                          you can claim J. J isn't a qualifying child of any-         head  of  household  filing  status  because  you 
1. The child tax credit, credit for other de-             one else, including J’s other parent. You agree             and your spouse didn't live apart for the last 6 
   pendents, or additional child tax credit.              to let your parent claim J. This means your pa-             months of the year. As a result, your filing status 
2. Head of household filing status.                       rent  can  claim  J  as  a  qualifying  child  for  all  of is  married  filing  separately,  so  you  can’t  claim 
                                                          the five tax benefits listed earlier, if your parent        the  earned  income  credit  because  you  don’t 
3. The credit for child and dependent care                qualifies  for  each  of  those  benefits  (and  if  you    meet  the  requirements  for  certain  separated 
   expenses.                                              don’t  claim  J  as  a  qualifying  child  for  any  of     spouses  to  claim  the  earned  income  credit 
4. The exclusion from income for dependent                those tax benefits).                                        when they don’t file a joint return. You and your 
                                                                                                                      spouse didn't live apart for the last 6 months of 
   care benefits.                                                                                                     2023, and while you did live apart at the end of 
                                                          Example 2—Parent has higher AGI than 
5. The earned income credit.                              grandparent. The facts are the same as in      Ex-          2023, you aren't legally separated under a writ-
                                                          ample 1, except your AGI is $18,000. Because                ten separation agreement or decree of separate 
The  other  person  can’t  take  any  of  these           your  parent's  AGI  isn't  higher  than  yours,  your      maintenance. Therefore, you don't meet the re-
benefits based on this qualifying child. In other         parent can’t claim J. Only you can claim J.                 quirements to take the earned income credit as 
words, you and the other person can’t agree to                                                                        a separated spouse who is not filing a joint re-
divide these benefits between you.                        Example  3—Two  persons  claim  same                        turn. You also can't take the credit for child and 
Tiebreaker  rules. To  determine  which  person           child. The facts are the same as in Example 1,              dependent  care  expenses  because  your  filing 
can treat the child as a qualifying child to claim        except  you  and  your  parent  both  claim  J  as  a       status is married filing separately and you and 
these five tax benefits, the following tiebreaker         qualifying child. In this case, you, as the child's         your  spouse  didn't  live  apart  for  the  last  6 
rules apply.                                              parent, will be the only one allowed to claim J             months of 2023.
                                                          as a qualifying child. The IRS will disallow your 
•  If only one of the persons is the child's pa-          parent's claim to the five tax benefits listed ear-         Example  7—Separated  parents  claim 
   rent, the child is treated as the qualifying           lier based on J. However, your parent may qual-             same child.   The facts are the same as in Ex-
   child of the parent.                                   ify  for  the  earned  income  credit  as  a  taxpayer      ample  6,  except  you  and  your  spouse  both 
•  If the parents file a joint return together and        without a qualifying child.                                 claim  your  child  as  a  qualifying  child.  In  this 
   can claim the child as a qualifying child,                                                                         case, only your spouse will be allowed to treat 
   the child is treated as the qualifying child of        Example 4—Qualifying children split be-                     your child as a qualifying child. This is because, 
   the parents.                                           tween  two  persons. The  facts  are  the  same             during  2023,  the  child  lived  with  your  spouse 
•  If the parents don’t file a joint return to-           as in Example 1, except you also have two other             longer than with you. If you claimed the child tax 
   gether but both parents claim the child as a           young  children  who  are  qualifying  children  of         credit  for  your  child,  the  IRS  will  disallow  your 
   qualifying child, the IRS will treat the child         both you and your parent. Only one of you can               claim to the child tax credit. If you don’t have an-
   as the qualifying child of the parent with             claim each child. However, if your parent's AGI             other qualifying child or dependent, the IRS will 

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also disallow your claim to the exclusion for de- Applying the tiebreaker rules to divorced or claim E as a qualifying child for the earned in-
pendent care benefits. In addition, because you separated parents (or parents who live come credit. Your parent also claims E as a
and your spouse didn't live apart for the last 6 apart). If a child is treated as the qualifying qualifying child for head of household filing sta-
months of the year, your spouse can’t claim child of the noncustodial parent under the rules tus. You, as the child's parent, will be the only
head of household filing status. As a result, your described earlier for children of divorced or sep- one allowed to claim E as a qualifying child for
spouse’s filing status is married filing separately. arated parents (or parents who live apart), only the earned income credit. The IRS will disallow
Your spouse can’t claim the earned income the noncustodial parent can claim the child as a your parent's claim to head of household filing
credit because your spouse doesn’t meet the dependent and claim the child tax credit, addi- status unless your parent has another qualifying
requirements to claim the earned income credit- tional child tax credit, or credit for other depend- child or dependent. Your parent can't claim the
for certain separated spouses. You and your ents for the child. However, only the custodial earned income credit as a taxpayer without a
spouse didn't live apart for the last 6 months of parent can claim the credit for child and de- qualifying child because your parent’s AGI is
2023, and, while you did live apart at the end of pendent care expenses or the exclusion for de- more than $17,640.
2023, you aren't legally separated under a writ- pendent care benefits for the child. Also, gener-
ten separation agreement or decree of separate ally, the noncustodial parent can't claim the
maintenance. Therefore, your spouse doesn't child as a qualifying child for head of household Qualifying Relative
meet the requirements to take the earned in- filing status or the earned income credit. In- Four tests must be met for a person to be your
come credit as a separated spouse who isn’t fil- stead, generally, the custodial parent, if eligible, qualifying relative. The four tests are:
ing a joint return. Your spouse also can't take or other eligible person can claim the child as a
the credit for child and dependent care expen- qualifying child for those two benefits. If the 1. Not a qualifying child test,
ses because your spouse’s filing status is mar- child is the qualifying child of more than one 2. Member of household or relationship test,
ried filing separately and you and your spouse person for these benefits, then the tiebreaker
didn't live apart for the last 6 months of 2023. rules just explained determine whether the cus- 3. Gross income test, and
todial parent or another eligible person can treat 4. Support test.
Example 8—Unmarried parents. You, the child as a qualifying child.
your 5-year-old child, L, and L’s other parent Age. Unlike a qualifying child, a qualifying rela-
lived together in the United States all year. You Example 1. You and your 5-year-old child, tive can be any age. There is no age test for a
and L’s other parent aren't married. L is a quali- E, lived all year with your parent in the United qualifying relative.
fying child of both you and L’s other parent be- States. Your parent paid the entire cost of keep-
cause L meets the relationship, age, residency, ing up the home. Your AGI is $10,000. Your pa- Kidnapped child. You may be able to treat a
support, and joint return tests for both you and rent's AGI is $25,000. E’s other parent lived in child as your qualifying relative even if the child
L’s other parent. Your AGI is $12,000 and L’s the United States all year, but didn’t live with has been kidnapped. See Pub. 501 for details.
other parent’s AGI is $14,000. L’s other parent you or E.
agrees to let you claim the child as a qualifying Under the rules explained earlier for children Not a Qualifying Child Test
child. This means you can claim L as a qualify- of divorced or separated parents (or parents A child isn't your qualifying relative if the child is
ing child for the child tax credit, head of house- who live apart), E is treated as the qualifying your qualifying child or the qualifying child of
hold filing status, the credit for child and de- child of E’s other parent, who can claim the any other taxpayer.
pendent care expenses, the exclusion for child tax credit for E. Because of this, you can’t
dependent care benefits, and the earned in- claim the child tax credit for E. However, those Example 1. Your 22-year-old child, who is a
come credit, if you qualify for each of those tax rules don't allow E’s other parent to claim E as a student, lives with you and meets all the tests to
benefits (and if L’s other parent doesn't claim L qualifying child for head of household filing sta- be your qualifying child. This child isn't your
as a qualifying child for any of those tax bene- tus, the credit for child and dependent care ex- qualifying relative.
fits). penses, the exclusion for dependent care bene-
fits, or the earned income credit. Example 2. Your 2-year-old child lives with
Example 9—Unmarried parents claim You and your parent didn't have any child your parents and meets all the tests to be their
same child. The facts are the same as in Ex- care expenses or dependent care benefits, so qualifying child. This child isn't your qualifying
ample 8, except you and L’s other parent both neither of you can claim the credit for child and relative.
claim L as a qualifying child. In this case, only dependent care expenses or the exclusion for
L’s other parent will be allowed to treat L as a dependent care benefits. But E is a qualifying Example 3. Your 30-year old child lives with
qualifying child. This is because L’s other pa- child of both you and your parent for head of you. This child isn’t a qualifying child because
rent’s AGI, $14,000, is more than your AGI, household filing status and the earned income the age test isn’t met. This child may be your
$12,000. If you claimed the child tax credit for L, credit because E meets the relationship, age, qualifying relative if the gross income test and
the IRS will disallow your claim to this credit. If residency, support, and joint return tests for the support test are met.
you don’t have another qualifying child or de- both you and your parent. (The support test
pendent, the IRS will also disallow your claim to doesn't apply for the earned income credit.) Example 4. Your 13-year-old grandchild
head of household filing status, the credit for However, you agree to let your parent claim E. only lived with you for 5 months during the year.
child and dependent care expenses, and the This means your parent can claim E for head of Your grandchild isn’t your qualifying child be-
exclusion for dependent care benefits. How- household filing status and the earned income cause the residency test isn’t met. Your grand-
ever, you may be able to claim the earned in- credit if your parent qualifies for each and if you child may be your qualifying relative if the gross
come credit as a taxpayer without a qualifying don’t claim E as a qualifying child for the earned income test and the support test are met.
child. income credit. (You can’t claim head of house-
hold filing status because your parent paid the Child of person not required to file a return.
Example 10—Child didn't live with a pa- entire cost of keeping up the home.) You may A child isn't the qualifying child of any other tax-
rent. You and your sibling’s child, M, lived with be able to claim the earned income credit as a payer and so may qualify as your qualifying rela-
your parent all year. You are 25 years old, and taxpayer without a qualifying child. tive if the child's parent (or other person for
your AGI is $9,300. Your parent’s AGI is whom the child is defined as a qualifying child)
$15,000. M’s parents file jointly, have an AGI of Example 2. The facts are the same as in isn't required to file an income tax return and ei-
less than $9,000, and don’t live with you or M. Example 1, except your AGI is $25,000 and ther:
M is a qualifying child of both you and your pa- your parent's AGI is $21,000. Your parent can’t • Doesn't file an income tax return, or
rent because M meets the relationship, age, claim E as a qualifying child for any purpose be-
residency, support, and joint return tests for cause your parent’s AGI isn't higher than yours. • Files a return only to get a refund of in-
both you and your parent. However, only your come tax withheld or estimated tax paid.
parent can treat M as a qualifying child. This is Example 3. The facts are the same as in
because your parent’s AGI, $15,000, is more Example 1, except you and your parent both Example 1—Return not required. You
than your AGI, $9,300. support an unrelated friend and your friend’s
3-year-old child, who lived with you all year in
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your home. Your friend has no gross income, If at any time during the year the person was Death or birth. A person who died during the
isn't required to file a 2023 tax return, and your spouse, that person can’t be your qualify- year, but lived with you as a member of your
doesn't file a 2023 tax return. Both your friend ing relative. household until death, will meet this test. The
and your friend’s child are your qualifying rela- same is true for a child who was born during the
tives if the support test is met. Relatives who don’t have to live with you. A year and lived with you as a member of your
person related to you in any of the following household for the rest of the year. The test is
Example 2—Return filed to claim refund. ways doesn't have to live with you all year as a also met if a child lived with you as a member of
The facts are the same as in Example 1, except member of your household to meet this test. your household except for any required hospital
your friend had wages of $1,500 during the year • Your child, stepchild, or foster child, or a stay following birth.
and had income tax withheld from your friend’s descendant of any of them (for example, If your dependent died during the year and
wages. Your friend files a return only to get a re- your grandchild). (A legally adopted child is you otherwise qualify to claim that person as a
fund of the income tax withheld and doesn't considered your child.) dependent, you can still claim that person as a
claim the earned income credit or any other tax • Your brother, sister, half brother, half sister, dependent.
credits or deductions. Both your friend and your stepbrother, or stepsister.
friend’s child are your qualifying relatives if the Example. Your parent, who met the tests to
support test is met. • Your father, mother, grandparent, or other be your qualifying relative, died on January 15.
direct ancestor, but not foster parent. You can claim your parent as a dependent on
Example 3—Earned income credit • Your stepfather or stepmother. your return.
claimed. The facts are the same as in Exam-
ple 2, except your friend had wages of $8,000 • A son or daughter of your brother or sister. Local law violated. A person doesn't meet
during the year and claimed the earned income • A son or daughter of your half brother or this test if at any time during the year the rela-
credit. Your friend's child is the qualifying child half sister. tionship between you and that person violates
of another taxpayer (your friend), so you can’t local law.
claim your friend's child as your qualifying rela- • A brother or sister of your father or mother.
tive. Also, you can’t claim your friend as your • Your son-in-law, daughter-in-law, fa- Example. Your significant other, T, lived
qualifying relative because of the gross income ther-in-law, mother-in-law, brother-in-law, with you as a member of your household all
test, explained later. or sister-in-law. year. However, your relationship with T violated
the laws of the state where you live because T
Child in Canada or Mexico. You may be able Any of these relationships that were established was married to someone else. Therefore, T
to claim your child as a dependent even if the by marriage aren't ended by death or divorce. doesn't meet this test and you can’t claim T as a
child lives in Canada or Mexico. If the child dependent.
doesn't live with you, the child doesn't meet the Example. In 2017, you and your spouse
residency test to be your qualifying child. How- began supporting your spouse’s unmarried pa- Adopted child. An adopted child is always
ever, the child may still be your qualifying rela- rent, G. Your spouse died in 2022. Despite your treated as your own child. The term “adopted
tive. If the persons the child does live with aren't spouse’s death, G continues to meet this test, child” includes a child who was lawfully placed
U.S. citizens and have no U.S. gross income, even if G doesn’t live with you. You can claim G with you for legal adoption.
those persons aren't “taxpayers,” so the child as a dependent if all other tests are met, includ- Cousin. Your cousin must live with you all year
isn't the qualifying child of any other taxpayer. If ing the gross income and support tests. as a member of your household to meet this
the child isn't the qualifying child of any other test. A cousin is a descendant of a brother or
taxpayer, the child is your qualifying relative as Foster child. A foster child is an individual sister of your father or mother.
long as the gross income test and the support who is placed with you by an authorized place-
test are met. ment agency or by judgment, decree, or other
You can’t claim as a dependent a child who order of any court of competent jurisdiction. Gross Income Test
lives in a foreign country other than Canada or Joint return. If you file a joint return, the per- To meet this test, a person's gross income for
Mexico, unless the child is a U.S. citizen, U.S. son can be related to either you or your spouse. the year must be less than $4,700.
resident alien, or U.S. national. There is an ex- Also, the person doesn't need to be related to Gross income defined. Gross income is all in-
ception for certain adopted children who lived the spouse who provides support. come in the form of money, property, and serv-
with you all year. See Citizen or Resident Test, For example, you provide more than half the ices that isn't exempt from tax.
earlier. support for your spouse’s stepparent. Your In a manufacturing, merchandising, or min-
spouse’s stepparent may be your qualifying rel- ing business, gross income is the total net sales
Example. You provide all the support of ative even if the stepparent doesn't live with minus the cost of goods sold, plus any miscella-
your children, ages 6, 8, and 12, who live in you. However, if you and your spouse file sepa- neous income from the business.
Mexico with your parent and have no income. rate returns, your spouse's stepparent can be Gross receipts from rental property are
You are single and live in the United States. your qualifying relative only if the stepparent gross income. Don’t deduct taxes, repairs, or
Your parent isn't a U.S. citizen and has no U.S. lives with you all year as a member of your other expenses to determine the gross income
income, so your parent isn't a “taxpayer.” Your household. from rental property.
children aren't your qualifying children because
they don’t meet the residency test. But since Temporary absences. A person is considered Gross income includes a partner's share of
they aren't the qualifying children of any other to live with you as a member of your household the gross (not a share of the net) partnership in-
taxpayer, they may be your qualifying relatives during periods of time when one of you, or both, come.
and you may be permitted to claim them as de- is temporarily absent due to special circumstan- Gross income also includes all taxable un-
pendents. You may also be able to claim your ces such as: employment compensation, taxable social se-
curity benefits, and certain amounts received as
parent as a dependent if the gross income and • Illness, scholarship and fellowship grants. Scholarships
support tests are met.
• Education, received by degree candidates and used for tui-
Member of Household or • Business, tion, fees, supplies, books, and equipment re-
quired for particular courses generally aren't in-
Relationship Test • Vacation, cluded in gross income. For more information
To meet this test, a person must either: • Military service, or about scholarships, see chapter 8.
1. Live with you all year as a member of your • Detention in a juvenile facility. Disabled dependent working at sheltered
workshop. For purposes of the gross income
household, or If the person is placed in a nursing home for test, the gross income of an individual who is
2. Be related to you in one of the ways listed an indefinite period of time to receive constant permanently and totally disabled at any time
under Relatives who don’t have to live with medical care, the absence may be considered during the year doesn't include income for
you below. temporary.
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services the individual performs at a sheltered are both considered provided by you in figuring the amount of support you provide each year is
workshop. The availability of medical care at the whether you provide more than half of the sup- the lump-sum payment divided by the relative's
workshop must be the main reason for the indi- port. If your allotment is used to support per- life expectancy. The amount of support you pro-
vidual's presence there. Also, the income must sons other than those you name, you can claim vide also includes any other amounts you provi-
come solely from activities at the workshop that them as dependents if they otherwise qualify. ded during the year.
are incident to this medical care.
A “sheltered workshop” is a school that: Example. You are in the Armed Forces. You Total Support
authorize an allotment for your surviving parent
• Provides special instruction or training de- that your surviving parent uses to support them- To figure if you provided more than half of a per-
signed to alleviate the disability of the indi- selves and their sibling. If the allotment provides son's support, you must first determine the total
vidual; and more than half of each person's support, you support provided for that person. Total support
• Is operated by certain tax-exempt organi- can claim each of them as a dependent, if they includes amounts spent to provide food, lodg-
zations, or by a state, a U.S. territory, a po- otherwise qualify, even though you authorize the ing, clothing, education, medical and dental
litical subdivision of a state or territory, the allotment only for your surviving parent. care, recreation, transportation, and similar ne-
United States, or the District of Columbia. cessities.
Tax-exempt military quarters allowances. Generally, the amount of an item of support
Permanently and totally disabled has the These allowances are treated the same way as is the amount of the expense incurred in provid-
same meaning here as under Qualifying Child, dependency allotments in figuring support. The ing that item. For lodging, the amount of support
earlier. allotment of pay and the tax-exempt basic al- is the fair rental value of the lodging.
lowance for quarters are both considered as Expenses not directly related to any one
Support Test (To Be a Qualifying provided by you for support. member of a household, such as the cost of
Relative) Tax-exempt income. In figuring a person's to- food for the household, must be divided among
To meet this test, you must generally provide tal support, include tax-exempt income, sav- the members of the household.
more than half of a person's total support during ings, and borrowed amounts used to support
the calendar year. that person. Tax-exempt income includes cer- Example 1. G Brown, parent of M Miller,
However, if two or more persons provide tain social security benefits, welfare benefits, lives with F and M Miller and their two children.
support, but no one person provides more than nontaxable life insurance proceeds, Armed G gets social security benefits of $2,400, which
half of a person's total support, see Multiple Forces family allotments, nontaxable pensions, G spends for clothing, transportation, and recre-
Support Agreement, later. and tax-exempt interest. ation. G has no other income. F and M's total
food expense for the household is $5,200. They
How to determine if support test is met. Example 1. You provide $4,000 toward pay G's medical and drug expenses of $1,200.
You figure whether you have provided more your parent’s support during the year. Your pa- The fair rental value of the lodging provided for
than half of a person's total support by compar- rent has earned income of $600, nontaxable so- G is $1,800 a year, based on the cost of similar
ing the amount you contributed to that person's cial security benefits of $4,800, and tax-exempt rooming facilities. Figure G's total support as
support with the entire amount of support that interest of $200, all of which your parent uses follows.
person received from all sources. This includes for self-support. You can’t claim your parent as
support the person provided from the person’s a dependent because the $4,000 you provide Fair rental value of lodging . . . . . . . . . $ 1,800
own funds. isn’t more than half of your parent’s total support Clothing, transportation, and
You may find Worksheet 3-1 helpful in figur- of $9,600 ($4,000 + $600 +$4,800 + $200). recreation . . . . . . . . . . . . . . . . . 2,400
ing whether you provided more than half of a
person's support. Example 2. K, your sibling’s child, takes out Medical expenses . . . . . . . . . . . . . 1,200
Person's own funds not used for support. A a student loan of $2,500 and uses it to pay col- Share of food (1/5 of $5,200) . . . . . . . 1,040
person's own funds aren't support unless they lege tuition. K is personally responsible for the Total support. . . . . . . . . . . . . . . $6,440
are actually spent for support. loan. You provide $2,000 toward K’s total sup-
port. You can’t claim K as a dependent because
Example. Your parent received $2,400 in you provide less than half of K’s support. The support F and M provide, $4,040
($1,800 lodging + $1,200 medical expenses +
social security benefits and $300 in interest, Social security benefits. If a married cou- $1,040 food), is more than half of G's $6,440 to-
paid $2,000 for lodging and $400 for recreation, ple receives benefits that are paid by one check tal support.
and put $300 in a savings account. made out to both of them, half of the total paid
Even though your parent received a total of is considered to be for the support of each Example 2. Your parents, A and B, live with
$2,700 ($2,400 + $300), your parent spent only spouse, unless they can show otherwise. you, your spouse, and your two children in a
$2,400 ($2,000 + $400) for your parent’s own If a child receives social security benefits house you own. The fair rental value of your pa-
support. If you spent more than $2,400 for your and uses them toward their own support, the rents' share of the lodging is $2,000 a year
parent’s support and no other support was re- benefits are considered as provided by the ($1,000 each), which includes furnishings and
ceived, you have provided more than half of child. utilities. A receives a nontaxable pension of
your parent’s support. $4,200, which A spends equally between A and
Support provided by the state (welfare, B for items of support such as clothing, trans-
Child's wages used for own support. You food stamps, housing, etc.). Benefits provi- portation, and recreation. Your total food ex-
can’t include in your contribution to your child's ded by the state to a needy person are gener- pense for the household is $6,000. Your heat
support any support paid for by the child with ally considered support provided by the state. and utility bills amount to $1,200. B has hospital
the child's own wages, even if you paid the wa- However, payments based on the needs of the and medical expenses of $600, which you pay
ges. recipient won't be considered as used entirely during the year. Figure your parents' total sup-
Year support is provided. The year you pro- for that person's support if it is shown that part port as follows.
vide the support is the year you pay for it, even if of the payments weren't used for that purpose.
you do so with borrowed money that you repay Foster care. Payments you receive for the sup-
in a later year. port of a foster child from a child placement
If you use a fiscal year to report your income, agency are considered support provided by the
you must provide more than half of the depend- agency. See Foster care payments and expen-
ent's support for the calendar year in which your ses, earlier.
fiscal year begins.
Home for the aged. If you make a lump-sum
Armed Forces dependency allotments. The advance payment to a home for the aged to
part of the allotment contributed by the govern- take care of your relative for life and the pay-
ment and the part taken out of your military pay ment is based on that person's life expectancy,
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Support provided A B support of that person by the fair rental value of haven't provided more than half of your child’s
lodging the person provides you. support.
Fair rental value of lodging . . . $1,000 $1,000
Property. Property provided as support is Childcare expenses. If you pay someone to
Pension spent for their measured by its fair market value. Fair market provide child or dependent care, you can in-
support . . . . . . . . . . . . 2,100 2,100 value is the price that property would sell for on clude these payments in the amount you provi-
Share of food (1/6 of the open market. It is the price that would be ded for the support of your child or disabled de-
$6,000) . . . . . . . . . . . . 1,000 1,000 agreed upon between a willing buyer and a will- pendent, even if you claim a credit for the
Medical expenses for B. . . . . 600 ing seller, with neither being required to act, and payments. For information on the credit, see
both having reasonable knowledge of the rele- Pub. 503.
Parents' total support . . . . $4,100 $4,700 vant facts.
Other support items. Other items may be
You must apply the support test separately Capital expenses. Capital items, such as considered as support depending on the facts
to each parent. You provide $2,000 ($1,000 furniture, appliances, and cars, bought for a per- in each case.
lodging + $1,000 food) of A’s total support of son during the year can be included in total sup-
$4,100—less than half. You provide $2,600 to B port under certain circumstances. Don’t Include in Total Support
($1,000 lodging + $1,000 food + $600 medi- The following examples show when a capital The following items aren't included in total sup-
cal)—more than half of B’s total support of item is or isn't support. port.
$4,700. You meet the support test for B, but not
A. Heat and utility costs are included in the fair Example 1. You buy a $200 power lawn 1. Federal, state, and local income taxes
rental value of the lodging, so these aren't con- mower for your 13-year-old child. The child is paid by persons from their own income.
sidered separately. given the duty of keeping the lawn trimmed. Be- 2. Social security and Medicare taxes paid
Lodging. If you provide a person with lodging, cause the lawn mower benefits all members of by persons from their own income.
you are considered to provide support equal to the household, don’t include the cost of the
the fair rental value of the room, apartment, lawn mower in the support of your child. 3. Life insurance premiums.
house, or other shelter in which the person 4. Funeral expenses.
lives. Fair rental value includes a reasonable al- Example 2. You buy a $150 television set
lowance for the use of furniture and appliances, as a birthday present for your 12-year-old child. 5. Scholarships received by your child if your
and for heat and other utilities that are provided. The television set is placed in your child's bed- child is a student.
room. You can include the cost of the television 6. Survivors' and Dependents' Educational
Fair rental value defined. Fair rental value set in the support of your child. Assistance payments used for the support
is the amount you could reasonably expect to of the child who receives them.
receive from a stranger for the same kind of Example 3. You pay $5,000 for a car and
lodging. It is used instead of actual expenses register it in your name. You and your
such as taxes, interest, depreciation, paint, in- 17-year-old child use the car equally. Because Multiple Support Agreement
surance, utilities, and the cost of furniture and you own the car and don’t give it to your child Sometimes no one provides more than half of
appliances. In some cases, fair rental value may but merely let your child use it, don’t include the the support of a person. Instead, two or more
be equal to the rent paid. cost of the car in your child’s total support. How- persons, each of whom would be able to claim
If you provide the total lodging, the amount ever, you can include in your child's support the person as a dependent but for the support
of support you provide is the fair rental value of your out-of-pocket expenses of operating the test, together provide more than half of the per-
the room the person uses, or a share of the fair car for your child’s benefit. son's support.
rental value of the entire dwelling if the person When this happens, you can agree that any
has use of your entire home. If you don’t provide Example 4. Your 17-year-old child, using one of you who individually provides more than
the total lodging, the total fair rental value must personal funds, buys a car for $4,500. You pro- 10% of the person's support, but only one, can
be divided depending on how much of the total vide the rest of your child's support, $4,000. Be- claim the person as a dependent. Each of the
lodging you provide. If you provide only a part cause the car is bought and owned by your others must sign a statement agreeing not to
and the person supplies the rest, the fair rental child, the car's fair market value ($4,500) must claim the person as a dependent for that year.
value must be divided between both of you ac- be included in your child’s support. Your child The person who claims the person as a de-
cording to the amount each provides. has provided more than half of their own total pendent must keep these signed statements for
support of $8,500 ($4,500 + $4,000), so this their own records. A multiple support declara-
Example. Your parents live rent free in a child isn't your qualifying child. You didn't pro- tion identifying each of the others who agreed
house you own. It has a fair rental value of vide more than half of this child’s total support, not to claim the person as a dependent must be
$5,400 a year furnished, which includes a fair so this child isn't your qualifying relative. You attached to the return of the person claiming the
rental value of $3,600 for the house and $1,800 can’t claim this child as a dependent. person as a dependent. Form 2120 can be
for the furniture. This doesn't include heat and Medical insurance premiums. Medical insur- used for this purpose.
utilities. The house is completely furnished with ance premiums you pay, including premiums for You can claim someone as a dependent un-
furniture belonging to your parents. You pay supplementary Medicare coverage, are inclu- der a multiple support agreement for someone
$600 for their utility bills. Utilities usually aren't ded in the support you provide. related to you or for someone who lived with
included in rent for houses in the area where you all year as a member of your household.
your parents live. Therefore, you consider the Medical insurance benefits. Medical insur-
total fair rental value of the lodging to be $6,000 ance benefits, including basic and supplemen- Example 1. You, and your siblings, S, B,
($3,600 fair rental value of the unfurnished tary Medicare benefits, aren't part of support. and D, provide the entire support of your parent
house + $1,800 allowance for the furnishings for the year. You provide 45%, S provides 35%,
provided by your parents + $600 cost of utilities) Tuition payments and allowances under the and B and D each provide 10%. Either you or S
of which you are considered to provide $4,200 GI Bill. Amounts veterans receive under the GI can claim your parent as a dependent; the one
($3,600 + $600). Bill for tuition payments and allowances while who doesn’t must sign a statement agreeing not
they attend school are included in total support. to claim your parent as a dependent. The one
Person living in their own home. The total who claims your parent as a dependent must
fair rental value of a person's home that the per- Example. During the year, your child re- attach Form 2120, or a similar declaration, to
son owns is considered support contributed by ceives $2,200 from the government under the their return and must keep the statement signed
that person. GI Bill. Your child uses this amount for your by the other for their records. Because neither B
child’s education. You provide the rest of your nor D provides more than 10% of the support,
Living with someone rent free. If you live child’s support, $2,000. Because GI benefits neither can claim your parent as a dependent
with a person rent free in that person’s home, are included in total support, your child’s total and neither has to sign a statement.
you must reduce the amount you provide for support is $4,200 ($2,200 + $2,000). You
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Example 2. You and your sibling each pro- Taxpayer identification numbers for only income tax, but self-employment tax
vide 20% of your parent's support for the year. adoptees. If you have a child who was placed and alternative minimum tax as well.
The remaining 60% of your parent’s support is with you by an authorized placement agency, This chapter explains these methods. In ad-
provided equally by two persons who are unre- you may be able to claim the child as a depend- dition, it also explains the following.
lated. Your parent doesn't live with them. Be- ent. However, if you can’t get an SSN or an ITIN
cause more than half of your parent’s support is for the child, you must get an ATIN for the child • Credit for withholding and estimated
provided by persons who can’t claim your pa- from the IRS. See Form W-7A, Application for tax. When you file your 2023 income tax
rent as a dependent, no one can claim your pa- Taxpayer Identification Number for Pending U.S. return, take credit for all the income tax
rent as a dependent. Adoptions, for details. withheld from your salary, wages, pen-
sions, etc., and for the estimated tax you
paid for 2023. Also take credit for any ex-
Support Test for Children of cess social security or railroad retirement
Divorced or Separated Parents (or tax withheld. See Pub. 505.
Parents Who Live Apart) Underpayment penalty. If you didn't pay
•
In most cases, a child of divorced or separated enough tax during the year, either through
parents (or parents who live apart) will be a 4. withholding or by making estimated tax
qualifying child of one of the parents. See Chil- payments, you may have to pay a penalty.
dren of divorced or separated parents (or pa- In most cases, the IRS can figure this pen-
rents who live apart) under Qualifying Child, alty for you. See Underpayment Penalty for
earlier. However, if the child doesn't meet the re- Tax Withholding 2023 at the end of this chapter.
quirements to be a qualifying child of either pa-
rent, the child may be a qualifying relative of
one of the parents. If you think this might apply and Estimated Useful Items
to you, see Pub. 501. You may want to see:

Tax Publication
Social Security
505 505 Tax Withholding and Estimated Tax
Numbers (SSNs)
What's New for 2024 Form (and Instructions)
for Dependents
Tax law changes for 2024. When you figure W-4 W-4 Employee's Withholding Certificate
You must show the SSN of any dependent you how much income tax you want withheld from W-4P W-4P Withholding Certificate for Periodic
list in the Dependents section of your Form your pay and when you figure your estimated Pension or Annuity Payments
1040 or 1040-SR. tax, consider tax law changes effective in 2024.
If you don’t show the dependent's SSN For more information, see Pub. 505, Tax With- W-4S W-4S Request for Federal Income Tax
! when required, or if you show an incor- holding and Estimated Tax. Withholding From Sick Pay
CAUTION rect SSN, certain tax benefits may be W-4V W-4V Voluntary Withholding Request
disallowed.
Reminders 1040-ES 1040-ES Estimated Tax for Individuals
No SSN. If a person whom you expect to claim 2210 2210 Underpayment of Estimated Tax by
as a dependent on your return doesn't have an Estimated tax safe harbor for higher in- Individuals, Estates, and Trusts
SSN, either you or that person should apply for come taxpayers. If your 2023 adjusted gross
an SSN as soon as possible by filing Form income was more than $150,000 ($75,000 if 2210-F 2210-F Underpayment of Estimated Tax
SS-5, Application for a Social Security Card, you are married filing a separate return), you by Farmers and Fishermen
with the Social Security Administration (SSA). must pay the smaller of 90% of your expected
You can get Form SS-5 online at SSA.gov/ tax for 2024 or 110% of the tax shown on your
forms/ss-5.pdf or at your local SSA office. 2023 return to avoid an estimated tax penalty. Tax Withholding
It usually takes about 2 weeks to get an SSN for 2024
once the SSA has all the information it needs. If
you don’t have a required SSN by the filing due Introduction This section discusses income tax withholding
date, you can file Form 4868 for an extension of on:
time to file. This chapter discusses how to pay your tax as
you earn or receive income during the year. In • Salaries and wages,
Born and died in 2023. If your child was general, the federal income tax is a • Tips,
born and died in 2023, and you don’t have an pay-as-you-go tax. There are two ways to pay
SSN for the child, you may attach a copy of the as you go. • Taxable fringe benefits,
child's birth certificate, death certificate, or hos- • Withholding. If you are an employee, your • Sick pay,
pital records instead. The document must show employer probably withholds income tax • Pensions and annuities,
the child was born alive. If you do this, enter from your pay. Tax may also be withheld Gambling winnings,
“DIED” in column (2) of the Dependents section from certain other income, such as pen- •
of your Form 1040 or 1040-SR. sions, bonuses, commissions, and gam- • Unemployment compensation, and
Alien or adoptee with no SSN. If your de- bling winnings. The amount withheld is • Certain federal payments.
pendent doesn't have and can’t get an SSN, paid to the IRS in your name.
This section explains the rules for withholding
you must show the Individual Taxpayer Identifi- • Estimated tax. If you don't pay your tax tax from each of these types of income.
cation Number (ITIN) or adoption taxpayer iden- through withholding, or don't pay enough
tification number (ATIN) instead of an SSN. tax that way, you may have to pay estima- This section also covers backup withholding
Taxpayer identification numbers for ali- ted tax. People who are in business for on interest, dividends, and other payments.
ens. If your dependent is a resident or nonresi- themselves will generally have to pay their
dent alien who doesn't have and isn't eligible to tax this way. Also, you may have to pay es-
get an SSN, your dependent must apply for an timated tax if you receive income such as Salaries and Wages
ITIN. For details on how to apply, see Form dividends, interest, capital gains, rent, and Income tax is withheld from the pay of most em-
W-7, Application for IRS Individual Taxpayer royalties. Estimated tax is used to pay not ployees. Your pay includes your regular pay, bo-
Identification Number. nuses, commissions, and vacation allowances.
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It also includes reimbursements and other ex- • Step 3. Complete this step if you claim de- Completing Form W-4 and
pense allowances paid under a nonaccountable pendents and other credits. Worksheets
plan. See Supplemental Wages, later, for more • Step 4. Complete this optional step to Form W-4 has worksheets to help you figure the
information about reimbursements and allowan- make other adjustments. correct amount of withholding you can claim.
ces paid under a nonaccountable plan. *Other income The worksheets are for your own records. Don't
If your income is low enough that you won't *Deductions give them to your employer.
have to pay income tax for the year, you may be *Extra withholding
exempt from withholding. This is explained un- Multiple Jobs Worksheet. If you have income
der Exemption From Withholding, later. from more than one job at the same time, or are
You can ask your employer to withhold in- New Job married filing jointly and you and your spouse
come tax from noncash wages and other wages When you start a new job, you must fill out Form both work, complete the Multiple Jobs Work-
not subject to withholding. If your employer W-4 and give it to your employer. Your employer sheet on the Form W-4.
doesn't agree to withhold tax, or if not enough is should have copies of the form. If you need to If you and your spouse expect to file sepa-
withheld, you may have to pay estimated tax, as change the information later, you must fill out a rate returns, figure your withholding using sepa-
discussed later under Estimated Tax for 2024. new form. rate worksheets based on your own individual
Military retirees. Military retirement pay is If you work only part of the year (for exam- income, adjustments, deductions, and credits.
treated in the same manner as regular pay for ple, you start working after the beginning of the
income tax withholding purposes, even though year), too much tax may be withheld. You may Deductions Worksheet. Use the Deductions
it is treated as a pension or annuity for other tax be able to avoid overwithholding if your em- Worksheet on Form W-4 if you plan to itemize
purposes. ployer agrees to use the part-year method. See deductions or claim certain adjustments to in-
Part-Year Method in chapter 1 of Pub. 505 for come and you want to reduce your withholding.
Household workers. If you are a household more information. Also complete this worksheet when you have
changes to these items to see if you need to
worker, you can ask your employer to withhold Employee also receiving pension income. change your withholding.
income tax from your pay. A household worker If you receive pension or annuity income and
is an employee who performs household work begin a new job, you will need to file Form W-4 Getting the Right Amount of Tax
in a private home, local college club, or local fra- with your new employer. However, you can
ternity or sorority chapter. choose to split your withholding between your Withheld
Tax is withheld only if you want it withheld pension and job in any manner. In most situations, the tax withheld from your
and your employer agrees to withhold it. If you pay will be close to the tax you figure on your re-
don't have enough income tax withheld, you turn if you follow these two rules.
may have to pay estimated tax, as discussed Changing Your Withholding
later under Estimated Tax for 2024. During the year, changes may occur to your • You accurately complete all the Form W-4
Farmworkers. Generally, income tax is with- marital status, adjustments, deductions, or worksheets that apply to you.
held from your cash wages for work on a farm credits you expect to claim on your tax return. • You give your employer a new Form W-4
unless your employer does both of these: When this happens, you may need to give your when changes occur.
employer a new Form W-4 to change your with- But because the worksheets and withhold-
• Pays you cash wages of less than $150 holding status. ing methods don't account for all possible situa-
during the year, and If a change in personal circumstances re- tions, you may not be getting the right amount
• Has expenditures for agricultural labor to- duces the amount of withholding you are enti- withheld. This is most likely to happen in the fol-
taling less than $2,500 during the year. tled to claim, you are required to give your em- lowing situations.
ployer a new Form W-4 within 10 days after the
Differential wage payments. When employ- change occurs. • You are married and both you and your
ees are on leave from employment for military spouse work.
duty, some employers make up the difference Changing your withholding for 2025. If You have more than one job at a time.
between the military pay and civilian pay. Pay- events in 2024 will change the amount of with- •
ments to an employee who is on active duty for holding you should claim for 2025, you must • You have nonwage income, such as inter-
a period of more than 30 days will be subject to give your employer a new Form W-4 by Decem- est, dividends, alimony, unemployment
income tax withholding, but not subject to social ber 1, 2024. If the event occurs in December compensation, or self-employment in-
security, Medicare, or federal unemployment 2024, submit a new Form W-4 within 10 days. come.
(FUTA) tax withholding. The wages and with- • You will owe additional amounts with your
holding will be reported on Form W-2, Wage Checking Your Withholding return, such as self-employment tax.
and Tax Statement. Your withholding is based on obsolete
After you have given your employer a Form •
W-4, you can check to see whether the amount Form W-4 information for a substantial part
Determining Amount of Tax of tax withheld from your pay is too little or too of the year.
Withheld Using Form W-4 much. If too much or too little tax is being with- • You work only part of the year.
The amount of income tax your employer with- held, you should give your employer a new
holds from your regular pay depends on two Form W-4 to change your withholding. You • You change the amount of your withholding
things. should try to have your withholding match your during the year.
actual tax liability. If not enough tax is withheld, • You are subject to Additional Medicare Tax
• The amount you earn in each payroll pe- you will owe tax at the end of the year and may or Net Investment Income Tax (NIIT). If you
riod. have to pay interest and a penalty. If too much anticipate liability for Additional Medicare
• The information you give your employer on tax is withheld, you will lose the use of that Tax or NIIT, you may request that your em-
Form W-4. money until you get your refund. Always check ployer withhold an additional amount of in-
your withholding if there are personal or finan- come tax withholding on Form W-4.
Form W-4 includes steps to help you figure cial changes in your life or changes in the law
your withholding. Complete Steps 2 through 4 that might change your tax liability. Cumulative wage method. If you change the
only if they apply to you. amount of your withholding during the year, too
• Step 1. Enter your personal information in- Note. You can’t give your employer a pay- much or too little tax may have been withheld
cluding your filing status. ment to cover withholding on salaries and wa- for the period before you made the change. You
• Step 2. Complete this step if you have ges for past pay periods or a payment for esti- may be able to compensate for this if your em-
more than one job at the same time or are mated tax. ployer agrees to use the cumulative wage with-
holding method for the rest of the year. You
married filing jointly and you and your must ask your employer in writing to use this
spouse both work. method.
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To be eligible, you must have been paid for You can claim exemption from withholding Penalties
the same kind of payroll period (weekly, bi- for 2024 only if both of the following situations You may have to pay a penalty of $500 if both of
weekly, etc.) since the beginning of the year. apply. the following apply.
• For 2023, you had a right to a refund of all
Publication 505 federal income tax withheld because you • You make statements or claim withholding
on your Form W-4 that reduce the amount
To make sure you are getting the right amount had no tax liability. of tax withheld.
of tax withheld, get Pub. 505. It will help you • For 2024, you expect a refund of all federal You have no reasonable basis for those
compare the total tax to be withheld during the income tax withheld because you expect to •
statements or withholding at the time you
year with the tax you can expect to figure on have no tax liability. prepare your Form W-4.
your return. It will also help you determine how
much, if any, additional withholding is needed Students. If you are a student, you aren’t auto- There is also a criminal penalty for willfully
each payday to avoid owing tax when you file matically exempt. See chapter 1 to find out if supplying false or fraudulent information on your
your return. If you don't have enough tax with- you must file a return. If you work only part time Form W-4 or for willfully failing to supply infor-
held, you may have to pay estimated tax, as ex- or only during the summer, you may qualify for mation that would increase the amount with-
plained under Estimated Tax for 2024, later. exemption from withholding. held. The penalty upon conviction can be either
You can use the Tax Withholding Esti- Age 65 or older or blind. If you are 65 or a fine of up to $1,000 or imprisonment for up to
TIP mator at IRS.gov/W4App, instead of older or blind, use Worksheet 1-1 or 1-2 in 1 year, or both.
Pub. 505 or the worksheets included chapter 1 of Pub. 505 to help you decide if you These penalties will apply if you deliberately
with Form W-4, to determine whether you need qualify for exemption from withholding. Don't and knowingly falsify your Form W-4 in an at-
to have your withholding increased or de- use either worksheet if you will itemize deduc- tempt to reduce or eliminate the proper with-
creased. tions or claim tax credits on your 2024 return. holding of taxes. A simple error or an honest
Instead, see Itemizing deductions or claiming mistake won't result in one of these penalties.
credits in chapter 1 of Pub. 505.
Rules Your Employer Must Follow Claiming exemption from withholding. To Tips
It may be helpful for you to know some of the claim exemption, you must give your employer a
withholding rules your employer must follow. Form W-4. Write “Exempt” on the form in the The tips you receive while working on your job
These rules can affect how to fill out your Form space below Step 4(c) and complete the appli- are considered part of your pay. You must in-
W-4 and how to handle problems that may cable steps of the form. clude your tips on your tax return on the same
arise. If you claim exemption, but later your situa- line as your regular pay. However, tax isn't with-
New Form W-4. When you start a new job, tion changes so that you will have to pay in- held directly from tip income, as it is from your
your employer should have you complete a come tax after all, you must file a new Form W-4 regular pay. Nevertheless, your employer will
Form W-4. Beginning with your first payday, within 10 days after the change. If you claim ex- take into account the tips you report when figur-
your employer will use the information you give emption in 2024, but you expect to owe income ing how much to withhold from your regular pay.
on the form to figure your withholding. tax for 2025, you must file a new Form W-4 by For more information on reporting your tips
If you later fill out a new Form W-4, your em- December 1, 2024. to your employer and on the withholding rules
ployer can put it into effect as soon as possible. Your claim of exempt status may be re- for tip income, see Pub. 531, Reporting Tip In-
The deadline for putting it into effect is the start viewed by the IRS. come.
of the first payroll period ending 30 or more An exemption is good for only 1 year. You How employer figures amount to withhold.
days after you turn it in. must give your employer a new Form W-4 by The tips you report to your employer are coun-
No Form W-4. If you don't give your employer February 15 each year to continue your exemp- ted as part of your income for the month you re-
a completed Form W-4, your employer must tion. port them. Your employer can figure your with-
holding in either of two ways.
withhold at the highest rate, as if you were sin-
gle. Supplemental Wages • By withholding at the regular rate on the
Repaying withheld tax. If you find you are Supplemental wages include bonuses, commis- sum of your pay plus your reported tips.
having too much tax withheld because you sions, overtime pay, vacation allowances, cer- • By withholding at the regular rate on your
didn't claim the correct amount of withholding tain sick pay, and expense allowances under pay plus a percentage of your reported
you are entitled to, you should give your em- certain plans. The payer can figure withholding tips.
ployer a new Form W-4. Your employer can’t re- on supplemental wages using the same method Not enough pay to cover taxes. If your regu-
pay any of the tax previously withheld. Instead, used for your regular wages. However, if these lar pay isn't enough for your employer to with-
claim the full amount withheld when you file payments are identified separately from your hold all the tax (including income tax and social
your tax return. regular wages, your employer or other payer of security and Medicare taxes (or the equivalent
However, if your employer has withheld supplemental wages can withhold income tax railroad retirement tax)) due on your pay plus
more than the correct amount of tax for the from these wages at a flat rate. your tips, you can give your employer money to
Form W-4 you have in effect, you don't have to Expense allowances. Reimbursements or cover the shortage. See Pub. 531 for more infor-
fill out a new Form W-4 to have your withholding other expense allowances paid by your em- mation.
lowered to the correct amount. Your employer ployer under a nonaccountable plan are treated Allocated tips. Your employer shouldn't with-
can repay the amount that was withheld incor- as supplemental wages. hold income tax, Medicare tax, social security
rectly. If you aren’t repaid, your Form W-2 will Reimbursements or other expense allowan- tax, or railroad retirement tax on any allocated
reflect the full amount actually withheld, which ces paid under an accountable plan that are tips. Withholding is based only on your pay plus
you would claim when you file your tax return. more than your proven expenses are treated as your reported tips. Your employer should refund
paid under a nonaccountable plan if you don't to you any incorrectly withheld tax. See Pub.
Exemption From Withholding return the excess payments within a reasonable 531 for more information.
If you claim exemption from withholding, your period of time.
employer won't withhold federal income tax For more information about accountable and
from your wages. The exemption applies only to nonaccountable expense allowance plans, see Taxable Fringe Benefits
income tax, not to social security, Medicare, or Pub. 505.
FUTA tax withholding. The value of certain noncash fringe benefits you
receive from your employer is considered part
of your pay. Your employer must generally with-
hold income tax on these benefits from your
regular pay.
Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 39

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For information on fringe benefits, see • A stock bonus plan; and Federal Payments
Fringe Benefits under Employee Compensation • Any other plan that defers the time you re-
in chapter 5. ceive compensation. You can choose to have income tax withheld
Although the value of your personal use of from certain federal payments you receive.
an employer-provided car, truck, or other high- The amount withheld depends on whether These payments are the following.
way motor vehicle is taxable, your employer can you receive payments spread out over more
choose not to withhold income tax on that than 1 year (periodic payments), within 1 year 1. Social security benefits.
amount. Your employer must notify you if this (nonperiodic payments), or as an eligible roll- 2. Tier 1 railroad retirement benefits.
choice is made. over distribution (ERD). Income tax withholding
For more information on withholding on taxa- from an ERD is mandatory. 3. Commodity credit corporation loans you
choose to include in your gross income.
ble fringe benefits, see chapter 1 of Pub. 505. More information. For more information on
withholding on pensions and annuities, includ- 4. Payments under the Agricultural Act of
ing a discussion of Form W-4P, see Pensions 1949 (7 U.S.C. 1421 et seq.), as amen-
Sick Pay and Annuities in chapter 1 of Pub. 505. ded, or title II of the Disaster Assistance
Sick pay is a payment to you to replace your Act of 1988, that are treated as insurance
proceeds and that you receive because:
regular wages while you are temporarily absent Gambling Winnings
from work due to sickness or personal injury. To a. Your crops were destroyed or dam-
qualify as sick pay, it must be paid under a plan Income tax is withheld at a flat 24% rate from aged by drought, flood, or any other
to which your employer is a party. certain kinds of gambling winnings. natural disaster; or
If you receive sick pay from your employer or Gambling winnings of more than $5,000 b. You were unable to plant crops be-
an agent of your employer, income tax must be from the following sources are subject to in- cause of a natural disaster described
withheld. An agent who doesn't pay regular wa- come tax withholding. in (a).
ges to you may choose to withhold income tax
at a flat rate. • Any sweepstakes; wagering pool, including 5. Any other payment under federal law as
However, if you receive sick pay from a third payments made to winners of poker tour- determined by the Secretary.
party who isn't acting as an agent of your em- naments; or lottery.
To make this choice, fill out Form W-4V (or a
ployer, income tax will be withheld only if you • Any other wager, if the proceeds are at similar form provided by the payer) and give it to
choose to have it withheld. See Form W-4S, least 300 times the amount of the bet. the payer.
later.
It doesn't matter whether your winnings are paid If you don't choose to have income tax with-
If you receive payments under a plan in in cash, in property, or as an annuity. Winnings held, you may have to pay estimated tax. See
which your employer doesn't participate (such not paid in cash are taken into account at their Estimated Tax for 2024, later.
as an accident or health plan where you paid all fair market value. If you don't pay enough tax, either through
the premiums), the payments aren’t sick pay
withholding or estimated tax, or a combination
and usually aren’t taxable. Exception. Gambling winnings from bingo, of both, you may have to pay a penalty. See Un-
Union agreements. If you receive sick pay un- keno, and slot machines generally aren’t sub- derpayment Penalty for 2023 at the end of this
der a collective bargaining agreement between ject to income tax withholding. However, you chapter.
your union and your employer, the agreement may need to provide the payer with a social se-
may determine the amount of income tax with- curity number to avoid withholding. See Backup More information. For more information about
holding. See your union representative or your withholding on gambling winnings in chapter 1 the tax treatment of social security and railroad
employer for more information. of Pub. 505. If you receive gambling winnings retirement benefits, see chapter 7. Get Pub.
not subject to withholding, you may need to pay 225, Farmer's Tax Guide, for information about
Form W-4S. If you choose to have income tax estimated tax. See Estimated Tax for 2024, the tax treatment of commodity credit corpora-
withheld from sick pay paid by a third party, later. tion loans or crop disaster payments.
such as an insurance company, you must fill out If you don't pay enough tax, either through
Form W-4S. Its instructions contain a worksheet withholding or estimated tax, or a combination Backup Withholding
you can use to figure the amount you want with- of both, you may have to pay a penalty. See Un-
held. They also explain restrictions that may ap- derpayment Penalty for 2023 at the end of this Banks or other businesses that pay you certain
ply. chapter. kinds of income must file an information return
Give the completed form to the payer of your (Form 1099) with the IRS. The information re-
sick pay. The payer must withhold according to Form W-2G. If a payer withholds income tax turn shows how much you were paid during the
your directions on the form. from your gambling winnings, you should re- year. It also includes your name and taxpayer
ceive a Form W-2G, Certain Gambling Win- identification number (TIN). TINs are explained
Estimated tax. If you don't request withholding nings, showing the amount you won and the in chapter 1 under Social Security Number
on Form W-4S, or if you don't have enough tax amount withheld. Report the tax withheld on (SSN).
withheld, you may have to make estimated tax Form 1040 or 1040-SR, line 25c.
payments. If you don't pay enough tax, either These payments generally aren’t subject to
through estimated tax or withholding, or a com- withholding. However, “backup” withholding is
bination of both, you may have to pay a penalty. Unemployment required in certain situations. Backup withhold-
See Underpayment Penalty for 2023 at the end ing can apply to most kinds of payments that
of this chapter. Compensation are reported on Form 1099.
You can choose to have income tax withheld The payer must withhold at a flat 24% rate in
Pensions and Annuities from unemployment compensation. To make the following situations.
this choice, fill out Form W-4V (or a similar form • You don't give the payer your TIN in the re-
Income tax will usually be withheld from your provided by the payer) and give it to the payer. quired manner.
pension or annuity distributions unless you All unemployment compensation is taxable. • The IRS notifies the payer that the TIN you
choose not to have it withheld. This rule applies If you don't have income tax withheld, you may gave is incorrect.
to distributions from: have to pay estimated tax. See Estimated Tax
• A traditional individual retirement arrange- for 2024, later. • You are required, but fail, to certify that you
ment (IRA); If you don't pay enough tax, either through aren’t subject to backup withholding.
withholding or estimated tax, or a combination • The IRS notifies the payer to start withhold-
• A life insurance company under an endow- of both, you may have to pay a penalty. See Un- ing on interest or dividends because you
ment, annuity, or life insurance contract; derpayment Penalty for 2023 at the end of this have underreported interest or dividends
• A pension, annuity, or profit-sharing plan; chapter. on your income tax return. The IRS will do
40 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

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Figure 4-A. Do You Have To Pay Estimated Tax?

Start Here
Will you owe $1,000 or more Will your income tax Will your income tax
for 2024 after subtracting Yes withholding and refundable No withholding and refundable No
income tax withholding and credits* be at least 90% credits* be at least 100%** of
refundable credits* from your (662/%3 for farmers and the tax shown on your 2023
total tax? (Don’t subtract any shermen) of the tax shown on tax return?
estimated tax payments.) your 2024 tax return? Note. Your 2023 return must
have covered a 12-month
No Yes period.
Yes

You are NOT required to pay
estimated tax.

You MUST make estimated
tax payment(s) by the
required due date(s).
See When To Pay
Estimated Tax.
*Use the refundable credits shown on the 2024 Estimated Tax Worksheet in Pub. 505.
**110% if less than two-thirds of your gross income for 2023 and 2024 is from farming or shing and your 2023
adjusted gross income was more than $150,000 ($75,000 if your ling status for 2024 is married ling a separate return).

this only after it has mailed you four noti- Who Doesn't Have To Pay 1. You expect to owe at least $1,000 in tax for
ces. 2024, after subtracting your withholding
Go to IRS.gov/Businesses/Small- Estimated Tax and refundable credits.
Businesses-Self-Employed/Backup- If you receive salaries or wages, you can avoid 2. You expect your withholding plus your re-
Withholding for more information on kinds of having to pay estimated tax by asking your em- fundable credits to be less than the
payments subject to backup withholding. ployer to take more tax out of your earnings. To smaller of:
Penalties. There are civil and criminal penal- do this, give a new Form W-4 to your employer. a. 90% of the tax to be shown on your
ties for giving false information to avoid backup See chapter 1 of Pub. 505. 2024 tax return, or
withholding. The civil penalty is $500. The crimi- Estimated tax not required. You don't have to b. 100% of the tax shown on your 2023
nal penalty, upon conviction, is a fine of up to pay estimated tax for 2024 if you meet all three tax return (but see Special rules for
$1,000 or imprisonment of up to 1 year, or both. of the following conditions. farmers, fishermen, and higher in-
• You had no tax liability for 2023. come taxpayers, later). Your 2023 tax
Estimated Tax for 2024 • You were a U.S. citizen or resident alien for return must cover all 12 months.
Estimated tax is the method used to pay tax on the whole year. If the result from using the general rule
income that isn't subject to withholding. This in- • Your 2023 tax year covered a 12-month pe- ! above suggests that you won't have
cludes income from self-employment, interest, riod. CAUTION enough withholding, complete the
2024 Estimated Tax Worksheet in Pub. 505 for a
dividends, alimony, rent, gains from the sale of You had no tax liability for 2023 if your total more accurate calculation.
assets, prizes, and awards. You may also have tax was zero or you didn't have to file an income
to pay estimated tax if the amount of income tax tax return. For the definition of “total tax” for Special rules for farmers, fishermen, and
being withheld from your salary, pension, or 2023, see Pub. 505, chapter 2. higher income taxpayers. If at least
other income isn't enough.
two-thirds of your gross income for tax year
Estimated tax is used to pay both income 2023 or 2024 is from farming or fishing, substi-
tax and self-employment tax, as well as other Who Must Pay Estimated 2 3 General
tute 66 / % for 90% in (2a) under the
taxes and amounts reported on your tax return. Tax rule, earlier. If your AGI for 2023 was more than
If you don't pay enough tax, either through with- $150,000 ($75,000 if your filing status for 2024
holding or estimated tax, or a combination of If you owe additional tax for 2023, you may have is married filing a separate return), substitute
both, you may have to pay a penalty. If you don't to pay estimated tax for 2024. 110% for 100% in (2b) under General rule, ear-
pay enough by the due date of each payment You can use the following general rule as a lier. See Figure 4-A and Pub. 505, chapter 2, for
period (see When To Pay Estimated Tax, later), guide during the year to see if you will have more information.
you may be charged a penalty even if you are enough withholding, or if you should increase
due a refund when you file your tax return. For your withholding or make estimated tax pay- Aliens. Resident and nonresident aliens may
information on when the penalty applies, see ments. also have to pay estimated tax. Resident aliens
should follow the rules in this chapter unless no-
Underpayment Penalty for 2023 at the end of General rule. In most cases, you must pay es- ted otherwise. Nonresident aliens should get
this chapter. timated tax for 2024 if both of the following ap- Form 1040-ES (NR), U.S. Estimated Tax for
ply. Nonresident Alien Individuals.

Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 41

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You are an alien if you aren’t a citizen or na-           Tax on $40,100 based on a                                 Fiscal year taxpayers.     If your tax year doesn't 
tional  of  the  United  States.  You  are  a  resident   separate return . . . . . . .           $4,595            start  on  January  1,  see  the  Form  1040-ES  in-
alien if you either have a green card or meet the         Tax on $8,400 based on a                                  structions for your payment due dates.
substantial presence test. For more information           separate return . . . . . . .            843
about  the  substantial  presence  test,  see  Pub.       Total . . . . . . . . . . . . . . .     $5,438            When To Start
519, U.S. Tax Guide for Aliens.
                                                          Taxpayer A's percentage of                                You don't have to make estimated tax payments 
Married taxpayers. If you qualify to make joint           total ($4,595 ÷ $5,438) . . .           85%               until you have income on which you will owe in-
estimated  tax  payments,  apply  the  rules  dis-        Taxpayer A's share of tax on                              come tax. If you have income subject to estima-
cussed here to your joint estimated income.               joint return                                              ted  tax  during  the  first  payment  period,  you 
You and your spouse can make joint estima-                ($5,383 × 85%) . . . . . . .            $4,576            must make your first payment by the due date 
ted  tax  payments  even  if  you  aren’t  living  to-                                                              for the first payment period. You can pay all your 
gether.                                                                                                             estimated tax at that time, or you can pay it in 
However,  you  and  your  spouse  can’t  make             How To Figure                                             installments.  If  you  choose  to  pay  in  install-
joint estimated tax payments if:                                                                                    ments, make your first payment by the due date 
                                                          Estimated Tax
•  You are legally separated under a decree                                                                         for the first payment period. Make your remain-
   of divorce or separate maintenance,                    To  figure  your  estimated  tax,  you  must  figure      ing  installment  payments  by  the  due  dates  for 
                                                          your  expected  adjusted  gross  income  (AGI),           the later periods.
•  You and your spouse have different tax                 taxable income, taxes, deductions, and credits            No income subject to estimated tax during 
   years, or                                              for the year.                                             first  period. If  you  don't  have  income  subject 
•  Either spouse is a nonresident alien (un-              When  figuring  your  2024  estimated  tax,  it           to  estimated  tax  until  a  later  payment  period, 
   less that spouse elected to be treated as a            may be helpful to use your income, deductions,            you  must  make  your  first  payment  by  the  due 
   resident alien for tax purposes (see chap-             and  credits  for  2023  as  a  starting  point.  Use     date for that period. You can pay your entire es-
   ter 1 of Pub. 519)).                                   your 2023 federal tax return as a guide. You can          timated  tax  by  the  due  date  for  that  period  or 
If you and your spouse can’t make estimated               use Form 1040-ES and Pub. 505 to figure your              you can pay it in installments by the due date for 
tax  payments,  apply  these  rules  to  your  sepa-      estimated  tax.  Nonresident  aliens  use  Form           that period and the due dates for the remaining 
rate estimated income. Making joint or separate           1040-ES (NR) and Pub. 505 to figure estimated             periods.
estimated tax payments won't affect your choice           tax (see chapter 8 of Pub. 519 for more informa-
of filing a joint tax return or separate returns for      tion).                                                    Table 4-1. General Due Dates for 
2024.                                                     You  must  make  adjustments  both  for                                Estimated Tax 
                                                          changes  in  your  own  situation  and  for  recent                    Installment Payments
2023 separate returns and 2024 joint re-                  changes  in  the  tax  law.  For  a  discussion  of 
turn. If you plan to file a joint return with your        these changes, visit IRS.gov.                             If you first      Make           Make later 
spouse for 2024 but you filed separate returns            For  more  complete  information  on  how  to             have income       installments   installments 
for  2023,  your  2023  tax  is  the  total  of  the  tax figure  your  estimated  tax  for  2024,  see  chap-      on which you      by:*           by:*
shown  on  your  separate  returns.  You  filed  a        ter 2 of Pub. 505.                                        must pay 
separate  return  if  you  filed  as  single,  head  of                                                             estimated tax:
household, or married filing separately.
2023  joint  return  and  2024  separate  re-             When To Pay Estimated                                     Before April 1    April 15       June 15
                                                                                                                                                     Sept. 15
turns.  If  you  plan  to  file  a  separate  return  for Tax                                                                                        Jan. 15, next 
2024 but you filed a joint return for 2023, your                                                                                                     year
2023 tax is your share of the tax on the joint re-        For estimated tax purposes, the tax year is divi-
turn. You file a separate return if you file as sin-      ded into four payment periods. Each period has            April 1–May 31    June 15        Sept. 15
gle, head of household, or married filing sepa-           a  specific  payment  due  date.  If  you  don't  pay                                      Jan. 15, next 
rately.                                                   enough  tax  by  the  due  date  of  each  payment                                         year
To figure your share of the tax on the joint re-          period,  you  may  be  charged  a  penalty  even  if      June 1–Aug. 31 Sept. 15          Jan. 15, next 
turn,  first  figure  the  tax  both  you  and  your      you are due a refund when you file your income                                             year
spouse would have paid had you filed separate             tax return. The payment periods and due dates 
returns for 2023 using the same filing status as          for estimated tax payments are shown next.                After Aug. 31     Jan. 15, next  (None)
                                                                                                                                      year
for 2024. Then, multiply the tax on the joint re-
turn by the following fraction.                           For the period:              Due date:*                   *See Saturday, Sunday, holiday rule and January 
                                                          Jan. 1–March 31 . . . . . .  April 15                     payment. 
                                                          April 1–May 31 . . . . . . . June 17                      How much to pay to avoid a penalty.            To de-
        The tax you would have paid had                   June 1–August 31 . . . . .   Sept. 16                     termine how much you should pay by each pay-
        you filed a separate return                       Sept. 1–Dec. 31 . . . . . .  Jan. 15, next year           ment  due  date,  see How  To  Figure  Each  Pay-
        The total tax you and your                                                                                  ment next.
        spouse would have paid had 
        you filed separate returns                        *See Saturday, Sunday, holiday rule and January 
                                                          payment.                                                  How To Figure
Example.     Taxpayer A and Taxpayer B filed                                                                        Each Payment
a joint return for 2023 showing taxable income            Saturday,  Sunday,  holiday  rule.    If  the  due 
of  $48,500  and  tax  of  $5,383.  Of  the  $48,500      date  for  an  estimated  tax  payment  falls  on  a      You  should  pay  enough  estimated  tax  by  the 
taxable income, $40,100 was Taxpayer A’s and              Saturday, Sunday, or legal holiday, the payment           due  date  of  each  payment  period  to  avoid  a 
the rest was Taxpayer B's. For 2024, they plan            will  be  on  time  if  you  make  it  on  the  next  day penalty for that period. You can figure your re-
to file married filing separately. Taxpayer A fig-        that isn't a Saturday, Sunday, or legal holiday.          quired payment for each period by using either 
                                                                                                                    the  regular  installment  method  or  the  annual-
ures tax on the 2023 joint return as follows.             January  payment.    If  you  file  your  2024  Form      ized  income  installment  method.  These  meth-
                                                          1040 or 1040-SR by January 31, 2025, and pay              ods  are  described  in  chapter  2  of  Pub.  505.  If 
                                                          the  rest  of  the  tax  you  owe,  you  don't  need  to  you don't pay enough during each payment pe-
                                                          make the payment due on January 15, 2025.                 riod, you may be charged a penalty even if you 
                                                                                                                    are due a refund when you file your tax return.
                                                                                                                    If  the  earlier  discussion  of No  income  sub-
                                                                                                                    ject  to  estimated  tax  during  first  period  or  the 
42                                                        Chapter 4 Tax Withholding and Estimated Tax                                          Publication 17 (2023)

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later discussion of Change in estimated tax ap- secure, and helps make sure we get your pay- communications Relay Services (TRS) for peo-
plies to you, you may benefit from reading An- ments on time. To pay your taxes online or for ple who are deaf, hard of hearing, or have a
nualized Income Installment Method in chap- more information, go to IRS.gov/Payments. You speech disability, dial 711 and then provide the
ter 2 of Pub. 505 for information on how to avoid can pay using any of the following methods. TRS assistant the 800-555-4477 number above
a penalty. • IRS Direct Pay. For online transfers di- or 800-733-4829. Additional information about
Underpayment penalty. Under the regular in- rectly from your checking or savings ac- EFTPS is also available in Pub. 966.
stallment method, if your estimated tax payment count at no cost to you, go to IRS.gov/
for any period is less than one-fourth of your es- Payments. Pay by Mobile Device
timated tax, you may be charged a penalty for • Pay by Card or Digital Wallet. To pay by To pay through your mobile device, download
underpayment of estimated tax for that period debit or credit card or digital wallet, go to the IRS2Go application.
when you file your tax return. Under the annual- IRS.gov/Payments. A fee is charged by
ized income installment method, your estimated these service providers.You can also pay Pay by Cash
tax payments vary with your income, but the by phone with a debit or credit card. See
amount required must be paid each period. See Debit or credit card under Pay by Phone, Cash is an in-person payment option for individ-
Instructions for Form 2210 for more information. later. uals provided through retail partners with a
maximum of $1,000 per day per transaction. To
Change in estimated tax. After you make an • Electronic Funds Withdrawal (EFW). make a cash payment, you must choose a pay-
estimated tax payment, changes in your in- This is an integrated e-file/e-pay option of- ment processor online with ACI Payments, Inc.
come, adjustments, deductions, or credits may fered only when filing your federal taxes at fed.acipayonline.com or www.Pay1040.com,
make it necessary for you to refigure your esti- electronically using tax preparation soft- our official payment provider. For more informa-
mated tax. Pay the unpaid balance of your ware, through a tax professional, or the IRS tion, go to IRS.gov/paywithcash or see Pub
amended estimated tax by the next payment at IRS.gov/OPA. 5250. Don't send cash payments through the
due date after the change or in installments by mail.
that date and the due dates for the remaining • Online Payment Agreement. If you can’t
payment periods. pay in full by the due date of your tax re-
turn, you can apply for an online monthly Pay by Check or Money Order
installment agreement at IRS.gov/ Using the Estimated Tax
Estimated Tax Payments Payments. Once you complete the online Payment Voucher
Not Required process, you will receive immediate notifi-
You don't have to pay estimated tax if your with- cation of whether your agreement has Before submitting a payment through the mail
holding in each payment period is at least as been approved. A user fee is charged. using the estimated tax payment voucher,
please consider alternative methods. One of
much as: • IRS2GO. This is the mobile application of our safe, quick, and easy electronic payment
• One-fourth of your required annual pay- the IRS. You can access Direct Pay or Pay options might be right for you.
ment, or By Card by downloading the application. If you choose to mail in your payment, each
• Your required annualized income install- payment of estimated tax by check or money or-
ment for that period. Electronic Federal Tax Payment der must be accompanied by a payment
You also don't have to pay estimated tax if you System (EFTPS) voucher from Form 1040-ES.
will pay enough through withholding to keep the This system allows you to pay your taxes online During 2023, if you:
amount you owe with your return under $1,000. or by phone directly from your checking or sav- • Made at least one estimated tax payment
ing account.There is no fee for this service. You but not by electronic means,
must be enrolled either online or have an enroll-
How To Pay Estimated Tax ment form mailed to you. See EFTPS under Pay • Didn't use software or a paid preparer to
by Phone, later. prepare or file your return,
There are several ways to pay estimated tax. then you should receive a copy of the 2024
• Credit an overpayment on your 2023 return Pay by Phone Form 1040-ES with payment vouchers.
to your 2024 estimated tax. The enclosed payment vouchers will be pre-
Paying by phone is another safe and secure printed with your name, address, and social se-
• Pay by direct transfer from your bank ac- method of paying electronically. Use one of the curity number. Using the preprinted vouchers
count, or pay by debit or credit card using a following methods: (1) call one of the debit or will speed processing, reduce the chance of er-
pay-by-phone system or the Internet. credit card providers, or (2) use the Electronic ror, and help save processing costs.
• Send in your payment (check or money or- Federal Tax Payment System (EFTPS) to pay Use the window envelopes that came with
der) with a payment voucher from Form directly from your checking or savings account. your Form 1040-ES package. If you use your
1040-ES. Debit or credit card. Call one of our service own envelopes, make sure you mail your pay-
providers. Each charges a fee that varies by ment vouchers to the address shown in the
Credit an Overpayment provider, card type, and payment amount. Form 1040-ES instructions for the place where
If you show an overpayment of tax after com- you live.
pleting your Form 1040 or 1040-SR for 2023, WorldPay US, Inc.
you can apply part or all of it to your estimated 844-PAY-TAX-8 (844-729-8298)TM No checks of $100 million or more accep-
tax for 2024. On line 36 of Form 1040 or www.payUSAtax.com ted. The IRS can’t accept a single check (in-
1040-SR, enter the amount you want credited to cluding a cashier’s check) for amounts of
your estimated tax rather than refunded. Take ACI Payments, Inc. (Formerly Official $100,000,000 ($100 million) or more. If you are
the amount you have credited into account Payments) sending $100 million or more by check, you’ll
when figuring your estimated tax payments. 888-272-9829 need to spread the payment over two or more
You can’t have any of the amount you credi- www.fed.acipayonline.com checks with each check made out for an
amount less than $100 million. This limit doesn’t
ted to your estimated tax refunded to you until apply to other methods of payment (such as
you file your tax return for the following year. You Link2Gov Corporation electronic payments). Please consider a
also can’t use that overpayment in any other 888-PAY-1040 (888-729-1040)TM
method of payment other than check if the
way. www.PAY1040.com amount of the payment is over $100 million.
Pay Online EFTPS. To get more information about EFTPS Note. These criteria can change without no-
The IRS offers an electronic payment option or to enroll in EFTPS, visit EFTPS.gov or call tice. If you don't receive a Form 1040-ES pack-
that is right for you. Paying online is convenient, 800-555-4477. To contact EFTPS using Tele- age and you are required to make an estimated

Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 43

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tax payment, you should go to IRS.gov/ also receive copies to file with your state and lo- Corrected Wage and Tax Statement, is used to
Form1040ES and print a copy of Form 1040-ES cal returns. correct a Form W-2.
that includes four blank payment vouchers. In certain situations, you will receive two
Complete one of these and make your payment Form W-2 forms in place of the original incorrect form. This
timely to avoid penalties for paying late. will happen when your taxpayer identification
Your employer is required to provide or send number is wrong or missing, your name and ad-
Don't use the address shown in the In- Form W-2 to you no later than January 31, dress are wrong, or you received the wrong
! structions for Form 1040 for your esti- 2024. You should receive a separate Form W-2 type of form (for example, a Form 1099-DIV,
CAUTION mated tax payments. from each employer you worked for. Dividends and Distributions, instead of a Form
If you didn't pay estimated tax last year, you If you stopped working before the end of 1099-INT, Interest Income). One new form you
can order Form 1040-ES from the IRS (see the 2023, your employer could have given you your receive will be the same incorrect form or have
inside back cover of this publication) or down- Form W-2 at any time after you stopped work- the same incorrect information, but all money
load it from IRS.gov. Follow the instructions to ing. However, your employer must provide or amounts will be zero. This form will have an “X”
make sure you use the vouchers correctly. send it to you by January 31, 2024. in the “CORRECTED” box at the top of the form.
If you ask for the form, your employer must The second new form should have all the cor-
Joint estimated tax payments. If you file a send it to you within 30 days after receiving your rect information, prepared as though it is the
joint return and are making joint estimated tax written request or within 30 days after your final original (the “CORRECTED” box won't be
payments, enter the names and social security wage payment, whichever is later. checked).
numbers on the payment voucher in the same If you haven't received your Form W-2 by
order as they will appear on the joint return. January 31, you should ask your employer for it. Form Received After Filing
Change of address. You must notify the IRS if If you don't receive it by early February, call the
you are making estimated tax payments and IRS. If you file your return and you later receive a
you changed your address during the year. Form W-2 shows your total pay and other form for income that you didn't include on your
Complete Form 8822, Change of Address, and compensation and the income tax, social secur- return, you should report the income and take
mail it to the address shown in the instructions ity tax, and Medicare tax that was withheld dur- credit for any income tax withheld by filing Form
for that form. ing the year. Include the federal income tax 1040-X, Amended U.S. Individual Income Tax
withheld (as shown in box 2 of Form W-2) on Return.
Form 1040 or 1040-SR, line 25a.
Credit for Withholding In addition, Form W-2 is used to report any Separate Returns
and Estimated Tax taxable sick pay you received and any income If you are married but file a separate return, you
tax withheld from your sick pay. can take credit only for the tax withheld from
for 2023 your own income. Don't include any amount
When you file your 2023 income tax return, take Form W-2G withheld from your spouse's income. However,
credit for all the income tax and excess social If you had gambling winnings in 2023, the payer different rules may apply if you live in a com-
security or railroad retirement tax withheld from may have withheld income tax. If tax was with- munity property state.
your salary, wages, pensions, etc. Also take held, the payer will give you a Form W-2G Community property states are listed in
credit for the estimated tax you paid for 2023. showing the amount you won and the amount of chapter 2. For more information on these rules,
These credits are subtracted from your total tax. tax withheld. and some exceptions, see Pub. 555, Commun-
Because these credits are refundable, you Report the amounts you won on Schedule 1 ity Property.
should file a return and claim these credits, (Form 1040). Take credit for the tax withheld on
even if you don't owe tax. Form 1040 or 1040-SR, line 25c. Estimated Tax
Two or more employers. If you had two or
more employers in 2023 and were paid wages The 1099 Series Take credit for all your estimated tax payments
for 2023 on Form 1040 or 1040-SR, line 26. In-
of more than $160,200, too much social secur- Most forms in the 1099 series aren’t filed with clude any overpayment from 2022 that you had
ity or tier 1 railroad retirement tax may have your return. These forms should be furnished to credited to your 2023 estimated tax.
been withheld from your pay. You may be able you by January 31, 2024 (or, for Forms 1099-B,
to claim the excess as a credit against your in- 1099-S, and certain Forms 1099-MISC, by Feb- Name changed. If you changed your name,
come tax when you file your return. See the In- ruary 15, 2024). Unless instructed to file any of and you made estimated tax payments using
structions for Form 1040 for more information. these forms with your return, keep them for your your old name, attach a brief statement to the
records. There are several different forms in this front of your paper tax return indicating:
Withholding series, which are not listed. See the instructions • When you made the payments,
for the specific Form 1099 for more information.
• The amount of each payment,
If you had income tax withheld during 2023, you Form 1099-R. Attach Form 1099-R to your pa- • Your name when you made the payments,
should be sent a statement by January 31, per return if box 4 shows federal income tax and
2024, showing your income and the tax with- withheld. Include the amount withheld in the to-
held. Depending on the source of your income, tal on line 25b of Form 1040 or 1040-SR. • Your social security number.
you should receive:
• Form W-2, Wage and Tax Statement; Backup withholding. If you were subject to The statement should cover payments you
backup withholding on income you received made jointly with your spouse as well as any
• Form W-2G, Certain Gambling Winnings; during 2023, include the amount withheld, as you made separately.
or shown on your Form 1099, in the total on Be sure to report the change to the Social
• A form in the 1099 series. line 25b of Form 1040 or 1040-SR. Security Administration. This prevents delays in
processing your return and issuing any refunds.
Forms W-2 and W-2G. If you file a paper re-
turn, always file Form W-2 with your income tax Form Not Correct
return. File Form W-2G with your return only if it If you receive a form with incorrect information Separate Returns
shows any federal income tax withheld from on it, you should ask the payer for a corrected If you and your spouse made separate estima-
your winnings. form. Call the telephone number or write to the ted tax payments for 2023 and you file separate
You should get at least two copies of each address given for the payer on the form. The returns, you can take credit only for your own
form. If you file a paper return, attach one copy corrected Form W-2G or Form 1099 you receive payments.
to the front of your federal income tax return. will have an “X” in the “CORRECTED” box at the If you made joint estimated tax payments,
Keep one copy for your records. You should top of the form. A special form, Form W-2c, you must decide how to divide the payments
between your returns. One of you can claim all
44 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

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of the estimated tax paid and the other none, or                                                            • Your total 2023 tax minus your withholding 
you can divide it in any other way you agree on.       Underpayment Penalty                                   and refundable credits is less than $1,000;
If  you  can’t  agree,  you  must  divide  the  pay-                                                        • You didn't have a tax liability for 2022 and 
ments in proportion to each spouse's individual        for 2023                                               your 2022 tax year was 12 months; or
tax as shown on your separate returns for 2023.
                                                       If you didn't pay enough tax, either through with-   • You didn't have any withholding taxes and 
                                                       holding or by making timely estimated tax pay-         your current year tax less any household 
Divorced Taxpayers                                     ments,  you  will  have  an  underpayment  of  esti-   employment taxes is less than $1,000.
If  you  made  joint  estimated  tax  payments  for    mated tax and you may have to pay a penalty.
2023,  and  you  were  divorced  during  the  year,                                                         Farmers and fishermen. Special rules apply if 
either you or your former spouse can claim all of      Generally,  you  won't  have  to  pay  a  penalty    you are a farmer or fisherman. See the Instruc-
the joint payments, or you each can claim part         for 2023 if any of the following apply.              tions for Form 2210-F for more information.
of them. If you can’t agree on how to divide the       • The total of your withholding and estimated        IRS  can  figure  the  penalty  for  you. If  you 
payments, you must divide them in proportion to          tax payments was at least as much as your          think you owe the penalty but you don't want to 
each spouse's individual tax as shown on your            2022 tax (or 110% of your 2022 tax if your         figure  it  yourself  when  you  file  your  tax  return, 
separate returns for 2023.                               AGI was more than $150,000, $75,000 if             you may not have to. Generally, the IRS will fig-
If  you  claim  any  of  the  joint  payments  on        your 2023 filing status is married filing sep-     ure the penalty for you and send you a bill. How-
your tax return, enter your former spouse's so-          arately) and you paid all required estima-         ever, if you think you are able to lower or elimi-
cial security number (SSN) in the space provi-           ted tax payments on time;                          nate  your  penalty,  you  must  complete  Form 
ded  on  the  front  of  Form  1040  or  1040-SR.  If  • The tax balance due on your 2023 return is         2210 or Form 2210-F and attach it to your paper 
you divorced and remarried in 2023, enter your           no more than 10% of your total 2023 tax,           return. See Instructions for Form 2210 for more 
present spouse's SSN in the space provided on            and you paid all required estimated tax            information.
the front of Form 1040 or 1040-SR. Also, on the          payments on time;
dotted  line  next  to  line  26,  enter  your  former 
spouse’s SSN, followed by “DIV.”

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Part Two.

The five chapters in this part discuss many kinds of income and
Income and adjustments to income. They explain which income is and isn’t taxed and
discuss some of the adjustments to income that you can make in figuring
Adjustments to your adjusted gross income.
The Form 1040 and Form 1040-SR schedules that are discussed in these
Income
chapters are:
• Schedule 1, Additional Income and Adjustments to Income;
• Schedule 2 (Part II), Other Taxes; and
• Schedule 3 (Part II), Other Payments and Refundable Credits.

Table V. Other Adjustments to Income
Use this table to find information about other adjustments to income not covered in this part of the publication.

IF you are looking for more information about the THEN see...
deduction for...
contributions to a health savings account Pub. 969, Health Savings Accounts and Other Tax-Favored
Health Plans.
moving expenses Pub. 3, Armed Forces’ Tax Guide.
part of your self-employment tax chapter 11.
self-employed health insurance Pub. 502, Medical and Dental Expenses.
payments to self-employed SEP, SIMPLE, and qualified plans Pub. 560, Retirement Plans for Small Business.
penalty on the early withdrawal of savings chapter 6.
contributions to an Archer MSA Pub. 969.
reforestation amortization or expense chapters 4 and 7 of Pub. 225, Farmer's Tax Guide.
contributions to Internal Revenue Code section 501(c)(18)(D) Pub. 525, Taxable and Nontaxable Income.
pension plans
expenses from the rental of personal property chapter 8.
certain required repayments of supplemental unemployment chapter 8.
benefits (sub-pay)
foreign housing costs chapter 4 of Pub. 54, Tax Guide for U.S. Citizens and Resident
Aliens Abroad.
jury duty pay given to your employer chapter 8.
contributions by certain ministers or chaplains to Internal Pub. 517, Social Security and Other Information for Members of
Revenue Code section 403(b) plans the Clergy and Religious Workers.
attorney fees and certain costs for actions involving IRS awards Pub. 525.
to whistleblowers

46 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

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1040) if you're self-employed. Also, see Pub.
Employee 926 for more information.
5. Compensation
Miscellaneous
This section discusses various types of em-
ployee compensation, including fringe benefits, Compensation
Wages, Salaries, retirement plan contributions, stock options, This section discusses different types of em-
and restricted property. ployee compensation.
and Other Form W-2. If you’re an employee, you should Advance commissions and other earnings.
receive a Form W-2 from your employer show- If you receive advance commissions or other
ing the pay you received for your services. In- amounts for services to be performed in the fu-
Earnings clude your pay on Form 1040 or 1040-SR, ture and you’re a cash-method taxpayer, you
line 1a, even if you don’t receive a Form W-2. must include these amounts in your income in
In some instances, your employer isn’t re- the year you receive them.
What’s New quired to give you a Form W-2. Your employer If you repay unearned commissions or other
isn’t required to give you a Form W-2 if you per- amounts in the same year you receive them, re-
Deferred compensation contribution limit form household work in your employer's home duce the amount included in your income by the
increased. If you participate in a 401(k) plan, for less than $2,600 in cash wages during the repayment. If you repay them in a later tax year,
403(b) plan, or the federal government's Thrift calendar year and you have no federal income you can deduct the repayment as an itemized
Savings Plan, the total annual amount you can taxes withheld from your wages. Household deduction on your Schedule A (Form 1040),
contribute is increased to $22,500 ($30,000 if work is work done in or around an employer's line 16, or you may be able to take a credit for
age 50 or older) for 2023. This also applies to home. Some examples of workers who do that year. See Repayments in chapter 8.
most 457 plans. household work are:
Allowances and reimbursements. If you re-
Health flexible spending arrangements • Babysitters, ceive travel, transportation, or other business
(health FSAs) under cafeteria plans. For tax • Caretakers, expense allowances or reimbursements from
your employer, see Pub. 463, Travel, Gift, and
years beginning in 2023, the dollar limitation un- • House cleaning workers, Car Expenses. If you’re a member of the military
der section 125(i) on voluntary employee salary
reductions for contributions to health FSAs is • Domestic workers, and you’re reimbursed for moving expenses,
$3,050. • Drivers, see Pub. 521, Moving Expenses.
• Health aides, Back pay awards. If you receive an amount in
payment of a settlement or judgment for back
Introduction • Housekeepers, pay, you must include the amount of the pay-
This chapter discusses compensation received • Maids, ment in your income. This includes payments
made to you for damages, unpaid life insurance
for services as an employee, such as wages, • Nannies, premiums, and unpaid health insurance premi-
salaries, and fringe benefits. The following top- Private nurses, and ums. They should be reported to you by your
ics are included. •
• Bonuses and awards. • Yard workers. employer on Form W-2.
• Special rules for certain employees. See Schedule H (Form 1040), Household Bonuses and awards. If you receive a bonus
Employment Taxes, and its instructions, and or award (cash, goods, services, etc.) from your
• Sickness and injury benefits. Pub. 926 for more information. employer, you must include its value in your in-
The chapter explains what income is inclu- If you performed services, other than as an come. However, if your employer merely prom-
ded and isn’t included in the employee's gross independent contractor, and your employer ises to pay you a bonus or award at some future
income and what’s not included. didn’t withhold social security and Medicare time, it isn’t taxable until you receive it or it’s
taxes from your pay, you must file Form 8919, made available to you.
Uncollected Social Security and Medicare Tax Employee achievement award. If you re-
Useful Items on Wages, with your Form 1040 or 1040-SR. ceive tangible personal property (other than
You may want to see: See Form 8919 and its instructions for more in- cash, a gift certificate, or an equivalent item) as
formation on how to figure unreported wages an award for length of service or safety achieve-
Publication and taxes and how to include them on your in- ment, you can generally exclude its value from
463 463 Travel, Gift, and Car Expenses come tax return. your income. The amount you can exclude is
Childcare providers. If you provide childcare, limited to your employer's cost and can’t be
502 502 Medical and Dental Expenses either in the child's home or in your home or more than $1,600 for qualified plan awards or
524 524 Credit for the Elderly or the Disabled other place of business, the pay you receive $400 for nonqualified plan awards for all such
must be included in your income. If you aren’t awards you receive during the year. Your em-
525 525 Taxable and Nontaxable Income an employee, you’re probably self-employed ployer can tell you whether your award is a
526 526 Charitable Contributions and must include payments for your services on qualified plan award. Your employer must make
Schedule C (Form 1040), Profit or Loss From the award as part of a meaningful presentation,
550 550 Investment Income and Expenses Business. You generally aren’t an employee un- under conditions and circumstances that don’t
554 554 Tax Guide for Seniors less you’re subject to the will and control of the create a significant likelihood of it being dis-
person who employs you as to what you’re to do guised pay.
575 575 Pension and Annuity Income and how you’re to do it. However, the exclusion doesn’t apply to the
following awards.
907 907 Tax Highlights for Persons With Babysitting. If you’re paid to babysit, even • A length-of-service award if you received it
Disabilities for relatives or neighborhood children, whether for less than 5 years of service or if you re-
926 926 Household Employer's Tax Guide on a regular basis or only periodically, the rules ceived another length-of-service award
for childcare providers apply to you. during the year or the previous 4 years.
3920 3920 Tax Relief for Victims of Terrorist
Attacks Self-employment tax. Whether you're an em- • A safety achievement award if you’re a
ployee or self-employed person, your income manager, administrator, clerical employee,
For these and other useful items, go to IRS.gov/ could be subject to self-employment tax. See or other professional employee or if more
Forms. the instructions for Schedules C and SE (Form than 10% of eligible employees previously
Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 47

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received safety achievement awards dur- accrued annual leave when you retire or resign, your taxable noncash fringe benefits. Your em-
ing the year. this amount will be included as wages on your ployer has the option to report taxable noncash
Form W-2. fringe benefits by using either of the following
Example. You received three employee If you resign from one agency and are reem- rules.
achievement awards during the year: a nonqua- ployed by another agency, you may have to re- • The general rule: benefits are reported for
lified plan award of a watch valued at $250, two pay part of your lump-sum annual leave pay- a full calendar year (January 1–December
qualified plan awards of a stereo valued at ment to the second agency. You can reduce 31).
$1,000, and a set of golf clubs valued at $500. gross wages by the amount you repaid in the
Assuming that the requirements for qualified same tax year in which you received it. Attach to • The special accounting period rule: bene-
plan awards are otherwise satisfied, each award your tax return a copy of the receipt or state- fits provided during the last 2 months of the
by itself would be excluded from income. How- ment given to you by the agency you repaid to calendar year (or any shorter period) are
ever, because the $1,750 total value of the explain the difference between the wages on treated as paid during the following calen-
awards is more than $1,600, you must include the return and the wages on your Forms W-2. dar year. For example, each year your em-
$150 ($1,750 – $1,600) in your income. ployer reports the value of benefits provi-
Outplacement services. If you choose to ded during the last 2 months of the prior
Differential wage payments. This is any pay- accept a reduced amount of severance pay so year and the first 10 months of the current
ment made to you by an employer for any pe- that you can receive outplacement services year.
riod during which you are, for a period of more (such as training in résumé writing and inter-
than 30 days, an active duty member of the uni- view techniques), you must include the unre- Your employer doesn’t have to use the same ac-
formed services and represents all or a portion duced amount of the severance pay in income. counting period for each fringe benefit, but must
of the wages you would have received from the use the same period for all employees who re-
employer during that period. These payments Sick pay. Pay you receive from your employer ceive a particular benefit.
are treated as wages and are subject to income while you’re sick or injured is part of your salary You must use the same accounting period
tax withholding, but not FICA or FUTA taxes. or wages. In addition, you must include in your that you use to report the benefit to claim an
The payments are reported as wages on Form income sick pay benefits received from any of employee business deduction (for use of a car,
W-2. the following payers. for example).
Government cost-of-living allowances. • A welfare fund. Form W-2. Your employer must include all tax-
Most payments received by U.S. Government • A state sickness or disability fund. able fringe benefits in Form W-2, box 1, as wa-
ges, tips, and other compensation and, if appli-
ble. However, certain cost-of-living allowances •
civilian employees for working abroad are taxa- An association of employers or employees. cable, in boxes 3 and 5 as social security and
are tax free. Pub. 516, U.S. Government Civilian • An insurance company, if your employer Medicare wages. Although not required, your
Employees Stationed Abroad, explains the tax paid for the plan. employer may include the total value of fringe
treatment of allowances, differentials, and other However, if you paid the premiums on an acci- benefits in box 14 (or on a separate statement).
special pay you receive for employment abroad. dent or health insurance policy yourself, the However, if your employer provided you with a
Nonqualified deferred compensation plans. benefits you receive under the policy aren’t tax- vehicle and included 100% of its annual lease
Your employer may report to you the total able. For more information, see Pub. 525, Taxa- value in your income, the employer must sepa-
amount of deferrals for the year under a non- ble and Nontaxable Income. rately report this value to you in box 14 (or on a
separate statement).
qualified deferred compensation plan on Form Social security and Medicare taxes paid by
W-2, box 12, using code Y. This amount isn’t in- employer. If you and your employer have an Accident or Health Plan
cluded in your income. agreement that your employer pays your social
However, if at any time during the tax year, security and Medicare taxes without deducting In most cases, the value of accident or health
the plan fails to meet certain requirements, or them from your gross wages, you must report plan coverage provided to you by your employer
isn’t operated under those requirements, all the amount of tax paid for you as taxable wages isn’t included in your income. Benefits you re-
amounts deferred under the plan for the tax on your tax return. The payment is also treated ceive from the plan may be taxable, as ex-
year and all preceding tax years to the extent as wages for figuring your social security and plained later under Sickness and Injury Bene-
vested and not previously included in income Medicare taxes and your social security and fits.
are included in your income for the current year. Medicare benefits. However, these payments For information on the items covered in this
This amount is included in your wages shown aren’t treated as social security and Medicare section, other than long-term care coverage,
on Form W-2, box 1. It’s also shown on Form wages if you’re a household worker or a farm see Pub. 969, Health Savings Accounts and
W-2, box 12, using code Z. worker. Other Tax-Favored Health Plans.
Note received for services. If your employer Stock appreciation rights. Don’t include a Long-term care coverage. Contributions by
gives you a secured note as payment for your stock appreciation right granted by your em- your employer to provide coverage for long-term
services, you must include the fair market value ployer in income until you exercise (use) the care services generally aren’t included in your
(usually the discount value) of the note in your right. When you use the right, you’re entitled to income. However, contributions made through a
income for the year you receive it. When you a cash payment equal to the fair market value of flexible spending or similar arrangement offered
later receive payments on the note, a propor- the corporation's stock on the date of use minus by your employer must be included in your in-
tionate part of each payment is the recovery of the fair market value on the date the right was come. This amount will be reported as wages in
the fair market value that you previously inclu- granted. You include the cash payment in your Form W-2, box 1.
ded in your income. Don’t include that part income in the year you use the right. Contributions you make to the plan are dis-
again in your income. Include the rest of the cussed in Pub. 502, Medical and Dental Expen-
payment in your income in the year of payment. ses.
If your employer gives you a nonnegotiable Fringe Benefits
unsecured note as payment for your services, Archer MSA contributions. Contributions by
payments on the note that are credited toward Fringe benefits received in connection with the your employer to your Archer MSA generally
the principal amount of the note are compensa- performance of your services are included in aren’t included in your income. Their total will be
tion income when you receive them. your income as compensation unless you pay reported in Form W-2, box 12, with code R. You
fair market value for them or they’re specifically must report this amount on Form 8853, Archer
Severance pay. If you receive a severance excluded by law. Refraining from the perform- MSAs and Long-Term Care Insurance Con-
payment when your employment with your em- ance of services (for example, under a covenant tracts. File the form with your return.
ployer ends or is terminated, you must include not to compete) is treated as the performance Health flexible spending arrangement
this amount in your income. of services for purposes of these rules. (health FSA). If your employer provides a
Accrued leave payment. If you’re a federal Accounting period. You must use the same health FSA that qualifies as an accident or
employee and receive a lump-sum payment for accounting period your employer uses to report health plan, the amount of your salary
48 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2023)

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reduction, and reimbursements of your medical it, you generally don’t include its value in your Two or more employers. Your exclusion for
care expenses, in most cases, aren’t included in income. In most cases, don’t include in your in- employer-provided group-term life insurance
your income. come the value of discounts at company cafete- coverage can’t exceed the cost of $50,000 of
rias, cab fares home when working overtime, coverage, whether the insurance is provided by
Note. Health FSAs are subject to a limit on and company picnics. a single employer or multiple employers. If two
salary reduction contributions for plan years be- or more employers provide insurance coverage
ginning after 2012. For tax years beginning in Holiday gifts. If your employer gives you a tur- that totals more than $50,000, the amounts re-
2023, the dollar limitation (as indexed for infla- key, ham, or other item of nominal value at ported as wages on your Forms W-2 won’t be
tion) on voluntary employee salary reductions Christmas or other holidays, don’t include the correct. You must figure how much to include in
for contributions to health FSAs is $3,050. value of the gift in your income. However, if your your income. Reduce the amount you figure by
employer gives you cash or a cash equivalent, any amount reported in Form W-2, box 12, with
Health reimbursement arrangement (HRA). you must include it in your income. code C, add the result to the wages reported in
If your employer provides an HRA that qualifies
box 1, and report the total on your return.
as an accident or health plan, coverage and re- Educational Assistance
imbursements of your medical care expenses Figuring the taxable cost. Use Worksheet
generally aren’t included in your income. You can exclude from your income up to $5,250 5-1 to figure the amount to include in your in-
of qualified employer-provided educational as- come.
Health savings account (HSA). If you’re an sistance. For more information, see Pub. 970,
eligible individual, you and any other person, in- Tax Benefits for Education.
cluding your employer or a family member, can Worksheet 5-1. Figuring the
make contributions to your HSA. Contributions, Cost of Group-Term Life
other than employer contributions, are deducti- Group-Term Life Insurance
Insurance To Include in
ble on your return whether or not you itemize In most cases, the cost of up to $50,000 of
deductions. Contributions made by your em- group-term life insurance coverage provided to Income
ployer aren’t included in your income. Distribu- you by your employer (or former employer) isn’t Keep for Your Records
tions from your HSA that are used to pay quali- included in your income. However, you must in- 1. Enter the total amount of
fied medical expenses aren’t included in your clude in income the cost of employer-provided your insurance coverage
income. Distributions not used for qualified insurance that is more than the cost of $50,000 from your
medical expenses are included in your income. of coverage reduced by any amount you pay to- employer(s) . . . . . . . . . . . . 1.
See Pub. 969 for the requirements of an HSA. ward the purchase of the insurance. 2. Limit on exclusion for
Contributions by a partnership to a bona fide For exceptions, see Entire cost excluded employer-provided
partner's HSA aren’t contributions by an em- and Entire cost taxed, later. group-term life insurance
coverage . . . . . . . . . . . . . . 2. 50,000
ployer. The contributions are treated as a distri- If your employer provided more than 3. Subtract line 2 from
bution of money and aren’t included in the part- $50,000 of coverage, the amount included in line 1 . . . . . . . . . . . . . . . . . 3.
ner's gross income. Contributions by a your income is reported as part of your wages in 4. Divide line 3 by $1,000.
partnership to a partner's HSA for services ren- Form W-2, box 1. Also, it’s shown separately in Figure to the nearest
dered are treated as guaranteed payments that box 12 with code C. tenth . . . . . . . . . . . . . . . . . 4.
are includible in the partner's gross income. In 5. Go to Table 5-1. Using your
both situations, the partner can deduct the con- Group-term life insurance. This insurance is age on the last day of the tax
tribution made to the partner's HSA. term life insurance protection (insurance for a year, find your age group in
fixed period of time) that:
Contributions by an S corporation to a 2% the left column, and enter the
shareholder-employee's HSA for services ren- • Provides a general death benefit, cost from the column on the
right for your age
dered are treated as guaranteed payments and • Is provided to a group of employees, group . . . . . . . . . . . . . . . . 5.
are includible in the shareholder-employee's 6. Multiply line 4 by
gross income. The shareholder-employee can • Is provided under a policy carried by the line 5 . . . . . . . . . . . . . . . . . 6.
deduct the contribution made to the share- employer, and 7. Enter the number of full
holder-employee's HSA. • Provides an amount of insurance to each months of coverage at this
Qualified HSA funding distribution. You employee based on a formula that prevents cost . . . . . . . . . . . . . . . . . . 7.
can make a one-time distribution from your indi- individual selection. 8. Multiply line 6 by
line 7 . . . . . . . . . . . . . . . . . 8.
vidual retirement account (IRA) to an HSA and Permanent benefits. If your group-term life 9. Enter the
you generally won’t include any of the distribu- insurance policy includes permanent benefits, premiums you paid
per month . . . . . 9.
tion in your income. such as a paid-up or cash surrender value, you 10. Enter the number
must include in your income, as wages, the cost of months you paid
Adoption Assistance of the permanent benefits minus the amount the
You may be able to exclude from your income you pay for them. Your employer should be able premiums . . . . . 10.
amounts paid or expenses incurred by your em- to tell you the amount to include in your income. 11. Multiply line 9 by
ployer for qualified adoption expenses in con- line 10 . . . . . . . . . . . . . . . . 11.
nection with your adoption of an eligible child. Accidental death benefits. Insurance that 12. Subtract line 11 from line 8.
See the Instructions for Form 8839, Qualified provides accidental or other death benefits but Include this amount in
Adoption Expenses, for more information. doesn’t provide general death benefits (travel your income as
Adoption benefits are reported by your em- insurance, for example) isn’t group-term life in- wages . . . . . . . . . . . . . . . 12.
ployer in Form W-2, box 12, with code T. They surance.
are also included as social security and Medi- Former employer. If your former employer
care wages in boxes 3 and 5. However, they provided more than $50,000 of group-term life
aren’t included as wages in box 1. To determine insurance coverage during the year, the amount
the taxable and nontaxable amounts, you must included in your income is reported as wages in
complete Part III of Form 8839. File the form Form W-2, box 1. Also, it’s shown separately in
with your return. box 12 with code C. Box 12 will also show the
amount of uncollected social security and Medi-
De Minimis (Minimal) Benefits care taxes on the excess coverage, with codes
If your employer provides you with a product or M and N. You must pay these taxes with your in-
service and the cost of it is so small that it would come tax return. Include them on Schedule 2
be unreasonable for the employer to account for (Form 1040), line 13.

Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 49

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Table 5-1. Cost of $1,000 of                           Entire cost excluded.     You aren’t taxed on the     Exclusion  limit. The  exclusion  for  commuter 
Group-Term Life Insurance for 1                        cost of group-term life insurance if any of the fol-  vehicle  transportation  and  transit  pass  fringe 
Month                                                  lowing circumstances apply.                           benefits can’t be more than $300 a month.
                                                       1. You’re permanently and totally disabled            The exclusion for the qualified parking fringe 
    Age                                          Cost    and have ended your employment.                     benefit can’t be more than $300 a month.
                                                                                                             If the benefits have a value that is more than 
Under 25. . . . . . . . . . . . . . . . . $      0.05  2. Your employer is the beneficiary of the pol-       these  limits,  the  excess  must  be  included  in 
25 through 29. . . . . . . . . . . . . .         0.06    icy for the entire period the insurance is in       your income.
30 through 34. . . . . . . . . . . . . .         0.08    force during the tax year.
35 through 39. . . . . . . . . . . . . .         0.09                                                        Commuter  highway  vehicle.    This  is  a  high-
40 through 44. . . . . . . . . . . . . .         0.10  3. A charitable organization (defined in Pub.         way vehicle that seats at least six adults (not in-
                                                         526, Charitable Contributions) to which             cluding the driver). At least 80% of the vehicle's 
45 through 49. . . . . . . . . . . . . .         0.15    contributions are deductible is the only            mileage must reasonably be expected to be:
50 through 54. . . . . . . . . . . . . .         0.23    beneficiary of the policy for the entire pe-
55 through 59. . . . . . . . . . . . . .         0.43    riod the insurance is in force during the tax       • For transporting employees between their 
60 through 64. . . . . . . . . . . . . .         0.66    year. (You aren’t entitled to a deduction for         homes and workplace, and
65 through 69. . . . . . . . . . . . . .         1.27    a charitable contribution for naming a              • On trips during which employees occupy at 
70 and above. . . . . . . . . . . . . .          2.06    charitable organization as the beneficiary            least half of the vehicle's adult seating ca-
                                                         of your policy.)                                      pacity (not including the driver).
Example.      You  are  51  years  old  and  work      4. The plan existed on January 1, 1984, and:          Transit pass. This is any pass, token, farecard, 
for employers A and B. Both employers provide                                                                voucher, or similar item entitling a person to ride 
group-term  life  insurance  coverage  for  you  for     a. You retired before January 2, 1984, 
the  entire  year.  Your  coverage  is  $35,000  with            and were covered by the plan when           mass transit (whether public or private) free or 
employer A and $45,000 with employer B. You                      you retired, or                             at a reduced rate or to ride in a commuter high-
                                                                                                             way  vehicle  operated  by  a  person  in  the  busi-
pay premiums of $4.15 a month under the em-              b. You reached age 55 before January 2,             ness of transporting persons for compensation.
ployer  B  group  plan.  You  figure  the  amount  to            1984, and were employed by the em-
include in your income as shown in           Worksheet           ployer or its predecessor in 1983.          Qualified parking.  This is parking provided to 
5-1. Figuring the Cost of Group-Term Life Insur-                                                             an employee at or near the employer's place of 
ance To Include in Income—Illustrated next.            Entire cost taxed.  You’re taxed on the entire        business.  It  also  includes  parking  provided  on 
                                                       cost of group-term life insurance if either of the    or  near  a  location  from  which  the  employee 
                                                       following circumstances apply.                        commutes  to  work  by  mass  transit,  in  a  com-
Worksheet 5-1. Figuring the                                                                                  muter highway vehicle, or by carpool. It doesn’t 
Cost of Group-Term Life                                • The insurance is provided by your em-
Insurance To Include in                                  ployer through a qualified employees' trust,        include parking at or near the employee's home.
                                                         such as a pension trust or a qualified annu-
Income—Illustrated                                       ity plan.                                           Retirement Plan 
Keep for Your Records
                                                       • You're a key employee and your employer's           Contributions
1.  Enter the total amount of                            plan discriminates in favor of key employ-
    your insurance coverage                              ees.                                                Your employer's contributions to a qualified re-
    from your                                                                                                tirement plan for you aren’t included in income 
    employer(s) . . . . . . . . . . . .      1.  80,000
2.  Limit on exclusion for                             Retirement Planning Services                          at the time contributed. (Your employer can tell 
                                                                                                             you  whether  your  retirement  plan  is  qualified.) 
    employer-provided                                  Generally, don’t include the value of qualified re-   However, the cost of life insurance coverage in-
    group-term life insurance                          tirement planning services provided to you and        cluded in the plan may have to be included. See 
    coverage . . . . . . . . . . . . . .     2.  50,000
                                                       your spouse by your employer's qualified retire-      Group-Term  Life  Insurance,  earlier,  under 
    line 1 . . . . . . . . . . . . . . . . . 3.  30,000
3.  Subtract line 2 from                               ment plan. Qualified services include retirement      Fringe Benefits.
4.  Divide line 3 by $1,000.                           planning  advice,  information  about  your  em-      If  your  employer  pays  into  a  nonqualified 
    Figure to the nearest                              ployer's retirement plan, and information about       plan  for  you,  you  must  generally  include  the 
    tenth . . . . . . . . . . . . . . . . .  4.  30.0  how the plan may fit into your overall individual     contributions  in  your  income  as  wages  for  the 
5.  Go to Table 5-1. Using your                        retirement  income  plan.  You  can’t  exclude  the   tax  year  in  which  the  contributions  are  made. 
    age on the last day of the tax                     value of any tax preparation, accounting, legal,      However, if your interest in the plan isn’t trans-
    year, find your age group in                       or  brokerage  services  provided  by  your  em-      ferable or is subject to a substantial risk of for-
    the left column, and enter the                     ployer.                                               feiture (you have a good chance of losing it) at 
    cost from the column on the 
    right for your age                                                                                       the time of the contribution, you don’t have to in-
    group  . . . . . . . . . . . . . . . .   5.  0.23  Transportation                                        clude the value of your interest in your income 
6.  Multiply line 4 by                                 If  your  employer  provides  you  with  a  qualified until it’s transferable or is no longer subject to a 
    line 5 . . . . . . . . . . . . . . . . . 6.  6.90                                                        substantial risk of forfeiture.
                                                       transportation fringe benefit, it can be excluded 
7.  Enter the number of full                           from your income, up to certain limits. A quali-          For information on distributions from re-
    months of coverage at this 
    cost . . . . . . . . . . . . . . . . . . 7.  12    fied transportation fringe benefit is:                TIP tirement plans, see Pub. 575, Pension 
8.  Multiply line 6 by                                 • Transportation in a commuter highway ve-                and Annuity Income (or Pub. 721, Tax 
    line 7 . . . . . . . . . . . . . . . . . 8.  82.80   hicle (such as a van) between your home             Guide to U.S. Civil Service Retirement Benefits, 
9.  Enter the                                            and work place,                                     if you’re a federal employee or retiree).
    premiums you paid 
    per month . . . . .  9.    4.15                    • A transit pass, or
                                                                                                             Elective deferrals. If you’re covered by certain 
10. Enter the number                                   • Qualified parking.                                  kinds  of  retirement  plans,  you  can  choose  to 
    of months you paid 
    the                                                Cash reimbursement by your employer for these         have part of your compensation contributed by 
    premiums . . . . .   10.      12                   expenses under a bona fide reimbursement ar-          your employer to a retirement fund, rather than 
11. Multiply line 9 by                                 rangement  is  also  excludable.  However,  cash      have it paid to you. The amount you set aside 
    line 10 . . . . . . . . . . . . . . . .  11. 49.80 reimbursement  for  a  transit  pass  is  excludable  (called  an  “elective  deferral”)  is  treated  as  an 
12. Subtract line 11 from line 8.                      only if a voucher or similar item that can be ex-     employer  contribution  to  a  qualified  plan.  An 
    Include this amount in                             changed  only  for  a  transit  pass  isn’t  readily  elective deferral, other than a designated Roth 
    your income as                                     available for direct distribution to you.             contribution  (discussed  later),  isn’t  included  in 
    wages . . . . . . . . . . . . . . .      12. 33.00
                                                                                                             wages  subject  to  income  tax  at  the  time 

50                                                     Chapter 5 Wages, Salaries, and Other Earnings                             Publication 17 (2023)

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contributed. Rather, it’s subject to income tax of a designated Roth contribution. See Pub. 525 If you’re a member of a religious organiza-
when distributed from the plan. However, it’s in- for a discussion of the tax treatment of excess tion and you give your outside earnings to the
cluded in wages subject to social security and deferrals. religious organization, you must still include the
Medicare taxes at the time contributed. earnings in your income. However, you may be
Elective deferrals include elective contribu- Catch-up contributions. You may be al- entitled to a charitable contribution deduction
tions to the following retirement plans. lowed catch-up contributions (additional elec- for the amount paid to the organization. See
tive deferral) if you’re age 50 or older by the end Pub. 526.
1. Cash or deferred arrangements (section of the tax year.
401(k) plans). Pension. A pension or retirement pay for a
member of the clergy is usually treated as any
2. The Thrift Savings Plan for federal employ- other pension or annuity. It must be reported on
ees. Stock Options
lines 5a and 5b of Form 1040 or 1040-SR.
3. Salary reduction simplified employee pen- If you receive a nonstatutory option to buy or Housing. Special rules for housing apply to
sion plans (SARSEP). sell stock or other property as payment for your members of the clergy. Under these rules, you
services, you will usually have income when
4. Savings incentive match plans for employ- you receive the option, when you exercise the don’t include in your income the rental value of
ees (SIMPLE plans). option (use it to buy or sell the stock or other a home (including utilities) or a designated
5. Tax-sheltered annuity plans (section property), or when you sell or otherwise dispose housing allowance provided to you as part of
403(b) plans). of the option. However, if your option is a statu- your pay. However, the exclusion can’t be more
tory stock option, you won’t have any income than the reasonable pay for your services. If you
6. Section 501(c)(18)(D) plans. until you sell or exchange your stock. Your em- pay for the utilities, you can exclude any allow-
7. Section 457 plans. ployer can tell you which kind of option you ance designated for utility cost, up to your ac-
hold. For more information, see Pub. 525. tual cost. The home or allowance must be provi-
Qualified automatic contribution arrange- ded as compensation for your services as an
ments. Under a qualified automatic contribu- ordained, licensed, or commissioned minister.
tion arrangement, your employer can treat you Restricted Property However, you must include the rental value of
as having elected to have a part of your com- the home or the housing allowance as earnings
pensation contributed to a section 401(k) plan. In most cases, if you receive property for your from self-employment on Schedule SE (Form
You are to receive written notice of your rights services, you must include its fair market value 1040) if you’re subject to the self-employment
and obligations under the qualified automatic in your income in the year you receive the prop- tax. For more information, see Pub. 517, Social
contribution arrangement. The notice must ex- erty. However, if you receive stock or other Security and Other Information for Members of
plain: property that has certain restrictions that affect the Clergy and Religious Workers.
• Your rights to elect not to have elective its value, you don’t include the value of the
contributions made, or to have contribu- property in your income until it has substantially
tions made at a different percentage; and vested. (Although you can elect to include the Members of Religious
value of the property in your income in the year Orders
• How contributions made will be invested in it’s transferred to you.) For more information,
the absence of any investment decision by see Restricted Property in Pub. 525. If you’re a member of a religious order who has
you. taken a vow of poverty, how you treat earnings
Dividends received on restricted stock. that you renounce and turn over to the order de-
You must be given a reasonable period of Dividends you receive on restricted stock are pends on whether your services are performed
time after receipt of the notice and before the treated as compensation and not as dividend for the order.
first elective contribution is made to make an income. Your employer should include these
election with respect to the contributions. payments on your Form W-2. Services performed for the order. If you’re
performing the services as an agent of the order
Overall limit on deferrals. For 2023, in Stock you elected to include in income. in the exercise of duties required by the order,
most cases, you shouldn’t have deferred more Dividends you receive on restricted stock you don’t include in your income the amounts turned
than a total of $22,500 of contributions to the elected to include in your income in the year over to the order.
plans listed in (1) through (3) and (5) above. transferred are treated the same as any other If your order directs you to perform services
The limit for SIMPLE plans is $15,500. The limit dividends. Report them on your return as divi- for another agency of the supervising church or
for section 501(c)(18)(D) plans is the lesser of dends. For a discussion of dividends, see Pub. an associated institution, you’re considered to
$7,000 or 25% of your compensation. The limit 550, Investment Income and Expenses. be performing the services as an agent of the
for section 457 plans is the lesser of your in- For information on how to treat dividends re- order. Any wages you earn as an agent of an or-
cludible compensation or $22,500. Amounts ported on both your Form W-2 and Form der that you turn over to the order aren’t inclu-
deferred under specific plan limits are part of 1099-DIV, see Dividends received on restricted ded in your income.
the overall limit on deferrals. stock in Pub. 525.
Designated Roth contributions. Employ- Example. You’re a member of a church or-
ers with section 401(k) plans, section 403(b) der and have taken a vow of poverty. You re-
plans, and governmental section 457 plans can Special Rules for nounce any claims to your earnings and turn
over to the order any salaries or wages you
create qualified Roth contribution programs so Certain Employees earn. You’re a registered nurse, so your order
that you may elect to have part or all of your
elective deferrals to the plan designated as af- This section deals with special rules for people assigns you to work in a hospital that is an as-
ter-tax Roth contributions. Designated Roth in certain types of employment: members of the sociated institution of the church. However, you
contributions are treated as elective deferrals, clergy, members of religious orders, people remain under the general direction and control
except that they’re included in income at the working for foreign employers, military person- of the order. You’re considered to be an agent of
time contributed. nel, and volunteers. the order and any wages you earn at the hospi-
tal that you turn over to your order aren’t inclu-
Excess deferrals. Your employer or plan ded in your income.
administrator should apply the proper annual Clergy Services performed outside the order. If
limit when figuring your plan contributions. How-
ever, you’re responsible for monitoring the total Generally, if you’re a member of the clergy, you you’re directed to work outside the order, your
you defer to ensure that the deferrals aren’t must include in your income offerings and fees services aren’t an exercise of duties required by
more than the overall limit. you receive for marriages, baptisms, funerals, the order unless they meet both of the following
If you set aside more than the limit, the ex- masses, etc., in addition to your salary. If the of- requirements.
cess must generally be included in your income fering is made to the religious institution, it isn’t • They’re the kind of services that are ordina-
for that year, unless you have an excess deferral taxable to you. rily the duties of members of the order.
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• They’re part of the duties that you must ex- rules may apply. See Foreign Employer in Pub. • Any bonus payment by a state or political
ercise for, or on behalf of, the religious or- 525. subdivision because of service in a combat
der as its agent. zone.
Employment abroad. For information on the
If you’re an employee of a third party, the serv- tax treatment of income earned abroad, see
ices you perform for the third party won’t be Pub. 54. Volunteers
considered directed or required of you by the
order. Amounts you receive for these services The tax treatment of amounts you receive as a
are included in your income, even if you have Military volunteer worker for the Peace Corps or similar
taken a vow of poverty. agency is covered in the following discussions.
Payments you receive as a member of a military
Example. You are a member of a religious service are generally taxed as wages except for Peace Corps. Living allowances you receive
order and have taken a vow of poverty. You re- retirement pay, which is taxed as a pension. Al- as a Peace Corps volunteer or volunteer leader
nounce all claims to your earnings and turn over lowances generally aren’t taxed. For more infor- for housing, utilities, household supplies, food,
your earnings to the order. mation on the tax treatment of military allowan- and clothing are generally exempt from tax.
You are a schoolteacher. You were instruc- ces and benefits, see Pub. 3, Armed Forces' Taxable allowances. The following allow-
ted by the superiors of the order to get a job Tax Guide. ances, however, must be included in your in-
with a private tax-exempt school. You became Differential wage payments. Any payments come and reported as wages.
an employee of the school, and, at your re- made to you by an employer during the time • Allowances paid to your spouse and minor
quest, the school made the salary payments di- you’re performing service in the uniformed serv- children while you’re a volunteer leader
rectly to the order. ices are treated as compensation. These wages training in the United States.
Because you are an employee of the school, are subject to income tax withholding and are
you’re performing services for the school rather reported on a Form W-2. See the discussion • Living allowances designated by the Direc-
than as an agent of the order. The wages you under Miscellaneous Compensation, earlier. tor of the Peace Corps as basic compen-
earn working for the school are included in your sation. These are allowances for personal
income. Military retirement pay. If your retirement pay items such as domestic help, laundry and
is based on age or length of service, it’s taxable clothing maintenance, entertainment and
and must be included in your income as a pen- recreation, transportation, and other mis-
Foreign Employer sion on lines 5a and 5b of Form 1040 or cellaneous expenses.
1040-SR. Don’t include in your income the
Special rules apply if you work for a foreign em- amount of any reduction in retirement or re- • Leave allowances.
ployer. tainer pay to provide a survivor annuity for your • Readjustment allowances or termination
U.S. citizen. If you’re a U.S. citizen who works spouse or children under the Retired Service- payments. These are considered received
in the United States for a foreign government, man's Family Protection Plan or the Survivor by you when credited to your account.
an international organization, a foreign em- Benefit Plan.
bassy, or any foreign employer, you must in- For more detailed discussion of survivor an- Example. You are a Peace Corps volun-
clude your salary in your income. nuities, see Pub. 575, Pension and Annuity In- teer and get $175 a month as a readjustment al-
come. lowance during your period of service, to be
Social security and Medicare taxes. paid to you in a lump sum at the end of your tour
You’re exempt from social security and Medi- Disability. If you’re retired on disability, see of duty. Although the allowance isn’t available to
care employee taxes if you’re employed in the Military and Government Disability Pensions un- you until the end of your service, you must in-
United States by an international organization or der Sickness and Injury Benefits, later. clude it in your income on a monthly basis as it’s
a foreign government. However, you must pay credited to your account.
self-employment tax on your earnings from Veterans' benefits. Don’t include in your in-
services performed in the United States, even come any veterans' benefits paid under any law, Volunteers in Service to America (VISTA). If
though you aren’t self-employed. This rule also regulation, or administrative practice adminis- you’re a VISTA volunteer, you must include meal
applies if you’re an employee of a qualifying tered by the Department of Veterans Affairs and lodging allowances paid to you in your in-
wholly owned instrumentality of a foreign gov- (VA). The following amounts paid to veterans or come as wages.
ernment. their families aren’t taxable. National Senior Services Corps programs.
Employees of international organizations or • Education, training, and subsistence allow- Don’t include in your income amounts you re-
foreign governments. Your compensation for ances. ceive for supportive services or reimbursements
for out-of-pocket expenses from the following
official services to an international organization • Disability compensation and pension pay- programs.
is exempt from federal income tax if you aren’t a ments for disabilities paid either to veter-
citizen of the United States or you’re a citizen of ans or their families. • Retired Senior Volunteer Program (RSVP).
the Philippines (whether or not you’re a citizen Foster Grandparent Program.
of the United States). • Grants for homes designed for wheelchair •
Your compensation for official services to a living. • Senior Companion Program.
foreign government is exempt from federal in- • Grants for motor vehicles for veterans who Service Corps of Retired Executives
come tax if all of the following are true. lost their sight or the use of their limbs. (SCORE). If you receive amounts for suppor-
• You aren’t a citizen of the United States or • Veterans' insurance proceeds and divi- tive services or reimbursements for
you’re a citizen of the Philippines (whether dends paid either to veterans or their bene- out-of-pocket expenses from SCORE, don’t in-
or not you’re a citizen of the United States). ficiaries, including the proceeds of a veter- clude these amounts in gross income.
• Your work is like the work done by employ- an's endowment policy paid before death. Volunteer tax counseling. Don’t include in
ees of the United States in foreign coun- • Interest on insurance dividends you leave your income any reimbursements you receive
tries. on deposit with the VA. for transportation, meals, and other expenses
• The foreign government gives an equal ex- • Benefits under a dependent-care assis- you have in training for, or actually providing,
emption to employees of the United States tance program. volunteer federal income tax counseling for the
elderly (TCE).
•
in its country. The death gratuity paid to a survivor of a You can deduct as a charitable contribution
Waiver of alien status. If you’re an alien member of the Armed Forces who died af- your unreimbursed out-of-pocket expenses in
who works for a foreign government or interna- ter September 10, 2001. taking part in the volunteer income tax assis-
tional organization and you file a waiver under • Payments made under the compensated tance (VITA) program. See Pub. 526.
section 247(b) of the Immigration and National- work therapy program.
ity Act to keep your immigrant status, different
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Volunteer firefighters and emergency medi- age is generally the age at which you can first d. Is caused by an instrumentality of war.
cal responders. If you are a volunteer fire- receive a pension or annuity if you’re not disa- 4. You would be entitled to receive disability
fighter or emergency medical responder, don’t bled. compensation from the Department of Vet-
include in your income the following benefits erans Affairs (VA) if you filed an applica-
you receive from a state or local government. You may be entitled to a tax credit if
TIP you were permanently and totally disa- tion for it. Your exclusion under this condi-
• Rebates or reductions of property or in- bled when you retired. For information tion is equal to the amount you would be
come taxes you receive because of serv- on this credit and the definition of permanent entitled to receive from the VA.
ices you performed as a volunteer fire- and total disability, see Pub. 524, Credit for the
fighter or emergency medical responder. Elderly or the Disabled. Pension based on years of service. If you
receive a disability pension based on years of
• Payments you receive because of services Beginning on the day after you reach mini- service, in most cases you must include it in
you performed as a volunteer firefighter or mum retirement age, payments you receive are your income. However, if the pension qualifies
emergency medical responder, up to $50 taxable as a pension or annuity. Report the pay- for the exclusion for a service-connected disa-
for each month you provided services. ments on lines 5a and 5b of Form 1040 or bility (discussed earlier), don’t include in income
The excluded income reduces any related tax 1040-SR. The rules for reporting pensions are the part of your pension that you would have re-
or contribution deduction. explained in Disability Pensions in Pub. 575. ceived if the pension had been based on a per-
For information on disability payments from centage of disability. You must include the rest
a governmental program provided as a substi- of your pension in your income.
Sickness and Injury tute for unemployment compensation, see Un-
Benefits employment Benefits in chapter 8. Retroactive VA determination. If you retire
from the armed services based on years of
Retirement and profit-sharing plans. If you service and are later given a retroactive serv-
This section discusses sickness and injury ben- receive payments from a retirement or ice-connected disability rating by the VA, your
efits, including disability pensions, long-term profit-sharing plan that doesn’t provide for disa- retirement pay for the retroactive period is ex-
care insurance contracts, workers' compensa- bility retirement, don’t treat the payments as a cluded from income up to the amount of VA dis-
tion, and other benefits. disability pension. The payments must be re- ability benefits you would have been entitled to
In most cases, you must report as income ported as a pension or annuity. For more infor- receive. You can claim a refund of any tax paid
any amount you receive for personal injury or mation on pensions, see Pub. 575. on the excludable amount (subject to the statute
sickness through an accident or health plan that Accrued leave payment. If you retire on disa- of limitations) by filing an amended return on
is paid for by your employer. If both you and bility, any lump-sum payment you receive for ac- Form 1040-X for each previous year during the
your employer pay for the plan, only the amount crued annual leave is a salary payment. The retroactive period. You must include with each
you receive that is due to your employer's pay- payment is not a disability payment. Include it in Form 1040-X a copy of the official VA determi-
ments is reported as income. However, certain your income in the tax year you receive it. nation letter granting the retroactive benefit. The
payments may not be taxable to you. For infor- letter must show the amount withheld and the
mation on nontaxable payments, see Military effective date of the benefit.
and Government Disability Pensions and Other Military and Government If you receive a lump-sum disability sever-
Sickness and Injury Benefits, later in this dis- Disability Pensions ance payment and are later awarded VA disabil-
cussion. Certain military and government disability pen- ity benefits, exclude 100% of the severance
Don’t report as income any amounts sions aren’t taxable. benefit from your income. However, you must
include in your income any lump-sum readjust-
TIP paid to reimburse you for medical ex- Service-connected disability. You may be ment or other nondisability severance payment
penses you incurred after the plan was able to exclude from income amounts you re- you received on release from active duty, even if
established. ceive as a pension, annuity, or similar allowance you’re later given a retroactive disability rating
for personal injury or sickness resulting from ac- by the VA.
Cost paid by you. If you pay the entire cost of tive service in one of the following government
a health or accident insurance plan, don’t in- services. Special period of limitation. In most ca-
clude any amounts you receive from the plan for ses, under the period of limitation, a claim for
personal injury or sickness as income on your • The armed forces of any country.
credit or refund must be filed within 3 years from
tax return. If your plan reimbursed you for medi- • The National Oceanic and Atmospheric the time a return was filed or 2 years from the
cal expenses you deducted in an earlier year, Administration. time the tax was paid. However, if you receive a
you may have to include some, or all, of the re- • The Public Health Service. retroactive service-connected disability rating
imbursement in your income. See What if You determination, the period of limitation is exten-
Receive Insurance Reimbursement in a Later • The Foreign Service.
ded by a 1-year period beginning on the date of
Year? in Pub. 502, Medical and Dental Expen- the determination. This 1-year extended period
ses. Conditions for exclusion. Don’t include the
disability payments in your income if any of the applies to claims for credit or refund filed after
Cafeteria plans. In most cases, if you’re cov- following conditions apply. June 17, 2008, and doesn’t apply to any tax
ered by an accident or health insurance plan year that began more than 5 years before the
through a cafeteria plan, and the amount of the 1. You were entitled to receive a disability date of the determination.
insurance premiums wasn’t included in your in- payment before September 25, 1975.
Terrorist attack or military action. Don’t in-
come, you aren’t considered to have paid the 2. You were a member of a listed government clude in your income disability payments you re-
premiums and you must include any benefits service or its reserve component, or were ceive for injuries incurred as a direct result of a
you receive in your income. If the amount of the under a binding written commitment to be- terrorist attack or military action directed against
premiums was included in your income, you’re come a member, on September 24, 1975. the United States (or its allies), whether outside
considered to have paid the premiums, and any or within the United States or from military ac-
benefits you receive aren’t taxable. 3. You receive the disability payments for a
combat-related injury. This is a personal tion. See Pub. 3920 and Pub. 907 for more in-
injury or sickness that: formation.
Disability Pensions a. Results directly from armed conflict;
Long-Term Care
If you retired on disability, you must include in b. Takes place while you’re engaged in
income any disability pension you receive under extra-hazardous service; Insurance Contracts
a plan that is paid for by your employer. You
must report your taxable disability payments on c. Takes place under conditions simulat- Long-term care insurance contracts in most ca-
line 1h of Form 1040 or 1040-SR until you reach ing war, including training exercises ses are treated as accident and health insur-
minimum retirement age. Minimum retirement such as maneuvers; or ance contracts. Amounts you receive from them
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(other than policyholder dividends or premium retired because of an occupational sickness or your absence from work. These benefits
refunds) in most cases are excludable from in- injury. aren’t taxable even if your employer pays
come as amounts received for personal injury for the accident and health plan that pro-
or sickness. To claim an exclusion for payments If part of your workers' compensation vides these benefits.
made on a per diem or other periodic basis un- ! reduces your social security or equiva-
der a long-term care insurance contract, you CAUTION lent railroad retirement benefits re- Reimbursement for medical care. A reim-
must file Form 8853 with your return. ceived, that part is considered social security bursement for medical care is generally not tax-
(or equivalent railroad retirement) benefits and able. However, it may reduce your medical ex-
A long-term care insurance contract is an in- may be taxable. For more information, see Pub. pense deduction. For more information, see
surance contract that only provides coverage 915, Social Security and Equivalent Railroad Pub. 502.
for qualified long-term care services. The con- Retirement Benefits.
tract must:
• Be guaranteed renewable; Return to work. If you return to work after
• Not provide for a cash surrender value or qualifying for workers' compensation, salary
other money that can be paid, assigned, payments you receive for performing light duties
pledged, or borrowed; are taxable as wages.
• Provide that refunds, other than refunds on 6.
the death of the insured or complete sur- Other Sickness and Injury
render or cancellation of the contract, and Benefits
dividends under the contract, may only be Interest Income
used to reduce future premiums or in- In addition to disability pensions and annuities,
crease future benefits; and you may receive other payments for sickness or
• In most cases, not pay or reimburse expen- injury.
ses incurred for services or items that Railroad sick pay. Payments you receive as Reminders
would be reimbursed under Medicare, ex- sick pay under the Railroad Unemployment In-
cept where Medicare is a secondary payer surance Act are taxable and you must include Foreign source income. If you are a U.S. citi-
or the contract makes per diem or other them in your income. However, don’t include zen with interest income from sources outside
periodic payments without regard to ex- them in your income if they’re for an on-the-job the United States (foreign income), you must re-
penses. injury. port that income on your tax return unless it is
Qualified long-term care services. Qualified If you received income because of a disabil- exempt by U.S. law. This is true whether you re-
long-term care services are: ity, see Disability Pensions, earlier. side inside or outside the United States and
whether or not you receive a Form 1099 from
• Necessary diagnostic, preventive, thera- Federal Employees' Compensation Act the foreign payer.
peutic, curing, treating, mitigating, and re- (FECA). Payments received under this Act for
habilitative services, and maintenance and personal injury or sickness, including payments Automatic 6-month extension. If you receive
personal care services; and to beneficiaries in case of death, aren’t taxable. your Form 1099 reporting your interest income
However, you’re taxed on amounts you receive late and you need more time to file your tax re-
• Required by a chronically ill individual and under this Act as continuation of pay for up to turn, you can request a 6-month extension of
provided pursuant to a plan of care prescri- 45 days while a claim is being decided. Report time to file. See Automatic Extension in chap-
bed by a licensed health care practitioner. this income as wages. Also, pay for sick leave ter 1.
Chronically ill individual. A chronically ill indi- while a claim is being processed is taxable and
vidual is one who has been certified by a li- must be included in your income as wages. Children who have unearned income. See
censed health care practitioner within the previ- If part of the payments you receive un- Form 8615 and its instructions for the rules and
rates that apply to certain children with un-
ous 12 months as one of the following. ! der FECA reduces your social security earned income.
• An individual who, for at least 90 days, is CAUTION or equivalent railroad retirement bene-
unable to perform at least two activities of fits received, that part is considered social se-
daily living without substantial assistance curity (or equivalent railroad retirement) benefits
due to loss of functional capacity. Activities and may be taxable. See Pub. 554 for more in- Introduction
of daily living are eating, toileting, transfer- formation. This chapter discusses the following topics.
ring, bathing, dressing, and continence.
Other compensation. Many other amounts • Different types of interest income.
• An individual who requires substantial su- you receive as compensation for sickness or in- • What interest is taxable and what interest
pervision to be protected from threats to jury aren’t taxable. These include the following is nontaxable.
health and safety due to severe cognitive amounts.
impairment. • When to report interest income.
• Compensatory damages you receive for
Limit on exclusion. You can generally exclude physical injury or physical sickness, • How to report interest income on your tax
from gross income up to $420 a day for 2023. whether paid in a lump sum or in periodic return.
See Limit on exclusion, under Long-Term Care payments. In general, any interest you receive or that is
Insurance Contracts, under Sickness and Injury credited to your account and can be withdrawn
Benefits in Pub. 525 for more information. • Benefits you receive under an accident or
health insurance policy on which either you is taxable income. Exceptions to this rule are
paid the premiums or your employer paid discussed later in this chapter.
Workers' Compensation the premiums but you had to include them You may be able to deduct expenses you
in your income. have in earning this income on Schedule A
Amounts you receive as workers' compensation (Form 1040) if you itemize your deductions. See
for an occupational sickness or injury are fully • Disability benefits you receive for loss of in- Money borrowed to invest in certificate of de-
exempt from tax if they’re paid under a workers' come or earning capacity as a result of in- posit, later, and chapter 12.
compensation act or a statute in the nature of a juries under a no-fault car insurance policy.
workers' compensation act. The exemption also • Compensation you receive for permanent
applies to your survivors. The exemption, how- loss or loss of use of a part or function of
ever, doesn’t apply to retirement plan benefits your body, or for your permanent disfigure-
you receive based on your age, length of serv- ment. This compensation must be based
ice, or prior contributions to the plan, even if you only on the injury and not on the period of

54 Chapter 6 Interest Income Publication 17 (2023)

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Useful Items and its instructions will tell you where to report your interest or dividend income. For more infor-
You may want to see: the income on your Form 1040 or 1040-SR. mation, see Backup Withholding in chapter 4.
Taxpayer identification number (TIN). You Reporting backup withholding. If backup
Publication must give your name and TIN (either a social withholding is deducted from your interest in-
537 537 Installment Sales security number (SSN), an employer identifica- come, the amount withheld will be reported on
tion number (EIN), an adoption taxpayer identifi- your Form 1099-INT. The Form 1099-INT will
550 550 Investment Income and Expenses cation number (ATIN), or an individual tax iden- show any backup withholding as “Federal in-
1212 1212 Guide to Original Issue Discount tification number (ITIN)) to any person required come tax withheld.”
(OID) Instruments by federal tax law to make a return, statement,
or other document that relates to you. This in- Joint accounts. If two or more persons hold
Form (and Instructions) cludes payers of interest. If you don't give your property (such as a savings account or bond)
TIN to the payer of interest, the payer will gener- as joint tenants, tenants by the entirety, or ten-
1040 1040 U.S. Individual Income Tax Return ally be required to backup withhold on the inter- ants in common, each person's share of any in-
1040-SR 1040-SR U.S. Income Tax Return for est payments at a rate of 24%, and you may terest from the property is determined by local
Seniors also be subject to a penalty. Use Form W-9, Re- law.
quest for Taxpayer Identification Number and Income from property given to a child.
Schedule A (Form 1040) Schedule A (Form 1040) Itemized Certification, to provide the necessary informa- Property you give as a parent to your child un-
Deductions tion. See Form W-9 and its instructions. der the Model Gifts of Securities to Minors Act,
the Uniform Gifts to Minors Act, or any similar
Schedule B (Form 1040) Schedule B (Form 1040) Interest and TIN for joint account. Generally, if the law becomes the child's property.
Ordinary Dividends funds in a joint account belong to one person, Income from the property is taxable to the
1099 1099 General Instructions for Certain list that person's name first on the account and child, except that any part used to satisfy a legal
Information Returns give that person's TIN to the payer. (For infor- obligation to support the child is taxable to the
mation on who owns the funds in a joint ac- parent or guardian having that legal obligation.
3115 3115 Application for Change in count, see Joint accounts, later.) If the joint ac-
Accounting Method count contains combined funds, give the TIN of Savings account with parent as trustee.
8615 8615 Tax for Certain Children Who Have the person whose name is listed first on the ac- Interest income from a savings account opened
Unearned Income count. This is because only one name and TIN for a minor child, but placed in the name and
can be shown on Form 1099. subject to the order of the parents as trustees,
8814 8814 Parents' Election To Report Child's These rules apply to both joint ownership by is taxable to the child if, under the law of the
Interest and Dividends a married couple and to joint ownership by state in which the child resides, both of the fol-
8815 8815 Exclusion of Interest From Series EE other individuals. For example, if you open a lowing are true.
and I U.S. Savings Bonds Issued joint savings account with your child using funds • The savings account legally belongs to the
After 1989 belonging to the child, list the child's name first child.
on the account and give the child's TIN.
8818 8818 Optional Form To Record Form W-9 and its instructions provide: If this • The parents aren't legally permitted to use
Redemption of Series EE and I U.S. Form W-9 is for a joint account (other than an any of the funds to support the child.
Savings Bonds Issued After 1989 account maintained by a foreign financial insti- Form 1099-INT. Interest income is generally
For these and other useful items, go to IRS.gov/ tution (FFI)), list first, and then circle, the name reported to you on Form 1099-INT, or a similar
Forms. of the person or entity whose number you en- statement, by banks, savings and loans, and
tered in Part I of Form W-9. If you are providing other payers of interest. This form shows you
Form W-9 to an FFI to document a joint ac- the interest income you received during the
General Information count, each holder of the account that is a U.S. year. Keep this form for your records. You don't
person must provide a Form W-9. See Form have to attach it to your tax return.
A few items of general interest are covered W-9 and its instructions. Report on your tax return the total interest in-
here.
Custodian account for your child. If your come you receive for the tax year. See the Form
Recordkeeping. You should keep a child is the actual owner of an account that is 1099-INT Instructions for Recipient to see
list showing sources of interest income recorded in your name as custodian for the whether you need to adjust any of the amounts
RECORDS and interest amounts received during child, give the child's TIN to the payer. For ex- reported to you.
the year. Also, keep the forms you receive ample, you must give your child's SSN to the Interest not reported on Form 1099-INT.
showing your interest income (Forms 1099-INT, payer of interest on an account owned by your Even if you don't receive a Form 1099-INT, you
for example) as an important part of your re- child, even though the interest is paid to you as must still report all of your interest income. For
cords. custodian. example, you may receive distributive shares of
Tax on unearned income of certain chil- Penalty for failure to supply TIN. If you interest from partnerships or S corporations.
dren. Part of a child's 2023 unearned income don't give your TIN to the payer of interest, you This interest is reported to you on Schedule K-1
may be taxed at the parent's tax rate. If so, Form may have to pay a penalty. See Failure to supply (Form 1065), Partner's Share of Income, De-
8615 must be completed and attached to the SSN under Penalties in chapter 1. Backup with- duction, Credits, etc.; or Schedule K-1 (Form
child's tax return. If not, Form 8615 isn't required holding may also apply. 1120-S), Shareholder's Share of Income, De-
and the child's income is taxed at his or her own ductions, Credits, etc.
tax rate. Backup withholding. Your interest income is
Some parents can choose to include the generally not subject to regular withholding. Nominees. Generally, if someone receives
child's interest and dividends on the parent's re- However, it may be subject to backup withhold- interest as a nominee for you, that person must
turn. If you can, use Form 8814 for this purpose. ing to ensure that income tax is collected on the give you a Form 1099-INT showing the interest
income. Under backup withholding, the payer of received on your behalf.
For more information about the tax on un- interest must withhold, as income tax, on the If you receive a Form 1099-INT and interest
earned income of children and the parents' amount you are paid, by applying the appropri- as a nominee for another person, see the dis-
election, go to Form 8615. ate withholding rate. The current rate is 24%. cussion on nominee distributions under How To
Beneficiary of an estate or trust. Interest you Withholding is required only if there is a condi- Report Interest Income in Publication 550,
receive as a beneficiary of an estate or trust is tion for backup withholding, such as failing to chapter 1 or the Schedule B (Form 1040) in-
generally taxable income. You should receive a provide your TIN to the payer or failing to certify structions.
Schedule K-1 (Form 1041), Beneficiary's Share your TIN under penalties of perjury, if required. Incorrect amount. If you receive a Form
of Income, Deductions, Credits, etc., from the fi- Backup withholding may also be required if 1099-INT that shows an incorrect amount or
duciary. Your copy of Schedule K-1 (Form 1041) the IRS has determined that you underreported other incorrect information, you should ask the
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issuer for a corrected form. The new Form • Domestic savings and loan associations, determined by the cost to the financial institu-
1099-INT you receive will have the “CORREC- • Federal savings and loan associations, tion.
TED” box checked. and
Example. You open a savings account at
Form 1099-OID. Reportable interest income • Mutual savings banks. your local bank and deposit $800. The account
may also be shown on Form 1099-OID, Original earns $20 interest. You also receive a $15 cal-
Issue Discount. For more information about The “dividends” will be shown as interest in-
amounts shown on this form, see Original Issue come on Form 1099-INT. culator. If no other interest is credited to your
account during the year, the Form 1099-INT you
Discount (OID), later in this chapter. Money market funds. Money market funds receive will show $35 interest for the year. You
The box references discussed below pay dividends and are offered by nonbank fi- must report $35 interest income on your tax re-
nancial institutions, such as mutual funds and turn.
! are from the January 2022 revisions of stock brokerage houses. Generally, amounts
CAUTION Form 1099-INT and Form 1099-DIV.
Later revisions may have different box referen- you receive from money market funds should be Interest on insurance dividends. Interest on
ces. reported as dividends, not as interest. insurance dividends left on deposit with an in-
surance company that can be withdrawn annu-
Certificates of deposit and other deferred ally is taxable to you in the year it is credited to
Exempt-interest dividends. Exempt-interest interest accounts. If you buy a certificate of your account. However, if you can withdraw it
dividends you receive from a mutual fund or deposit or open a deferred interest account, in- only on the anniversary date of the policy (or
other regulated investment company (RIC) terest may be paid at fixed intervals of 1 year or other specified date), the interest is taxable in
aren't included in your taxable income. (How- less during the term of the account. You must the year that date occurs.
ever, see Information reporting requirement generally include this interest in your income
next.) Exempt-interest dividends should be when you actually receive it or are entitled to re- Prepaid insurance premiums. Any increase
shown on Form 1099-DIV, box 12. You don't re- ceive it without paying a substantial penalty. in the value of prepaid insurance premiums, ad-
duce your basis for distributions that are ex- The same is true for accounts that mature in 1 vance premiums, or premium deposit funds is
empt-interest dividends. year or less and pay interest in a single payment interest if it is applied to the payment of premi-
Information reporting requirement. Al- at maturity. If interest is deferred for more than 1 ums due on insurance policies or made availa-
though exempt-interest dividends aren't taxable, year, see Original Issue Discount (OID), later. ble for you to withdraw.
you must show them on your tax return if you U.S. obligations. Interest on U.S. obligations
have to file. This is an information reporting re- Interest subject to penalty for early with- issued by any agency or instrumentality of the
quirement and doesn't change the exempt-inter- drawal. If you withdraw funds from a deferred United States, such as U.S. Treasury bills,
est dividends into taxable income. interest account before maturity, you may have notes, and bonds, is taxable for federal income
to pay a penalty. You must report the total tax purposes.
Note. Exempt-interest dividends paid by a amount of interest paid or credited to your ac-
mutual fund or other RIC on specified private count during the year, without subtracting the Interest on tax refunds. Interest you receive
activity bonds may be subject to the alternative penalty. See Penalty on early withdrawal of sav- on tax refunds is taxable income.
minimum tax (AMT). The exempt-interest divi- ings in Publication 550, chapter 1 for more infor- Interest on condemnation award. If the con-
dends subject to the AMT should be shown in mation on how to report the interest and deduct demning authority pays you interest to compen-
box 13 of Form 1099-DIV. See Alternative Mini- the penalty. sate you for a delay in payment of an award, the
mum Tax (AMT) in chapter 13 for more informa- Money borrowed to invest in certificate of interest is taxable.
tion. Publication 550, chapter 1 contains a dis- deposit. The interest you pay on money bor- Installment sale payments. If a contract for
cussion on private activity bonds under State or rowed from a bank or savings institution to meet the sale or exchange of property provides for
Local Government Obligations. the minimum deposit required for a certificate of deferred payments, it also usually provides for
Interest on VA dividends. Interest on insur- deposit from the institution and the interest you interest payable with the deferred payments.
ance dividends left on deposit with the Depart- earn on the certificate are two separate items. Generally, that interest is taxable when you re-
ment of Veterans Affairs (VA) isn't taxable. This You must report the total interest income you ceive it. If little or no interest is provided for in a
includes interest paid on dividends on conver- earn on the certificate in your income. If you deferred payment contract, part of each pay-
ted United States Government Life Insurance itemize deductions, you can deduct the interest ment may be treated as interest. See Unstated
and on National Service Life Insurance policies. you pay as investment interest, up to the Interest and Original Issue Discount (OID) in
amount of your net investment income. See In- Pub. 537, Installment Sales.
Individual retirement arrangements (IRAs). terest Expenses in Publication 550, chapter 3.
Interest on a Roth IRA generally isn't taxable. In- Interest on annuity contract. Accumulated
terest on a traditional IRA is tax deferred. You Example. You purchase a $10,000 certifi- interest on an annuity contract you sell before
generally don't include interest earned in an IRA cate of deposit by borrowing $5,000 from Bank its maturity date is taxable.
in your income until you make withdrawals from and adding an additional $5,000 of your funds. Usurious interest. Usurious interest is interest
the IRA. See chapter 9. The certificate earned $575 at maturity in 2023, charged at an illegal rate. This is taxable as in-
but you received only $265, which represented terest unless state law automatically changes it
Taxable the $575 you earned minus $310 interest to a payment on the principal.
charged on your $5,000 loan. The bank gives
Interest—General you a Form 1099-INT for 2023 showing the Interest income on frozen deposits. Exclude
$575 interest you earned. The bank also gives from your gross income interest on frozen de-
Taxable interest includes interest you receive you a statement showing that you paid $310 of posits. A deposit is frozen if, at the end of the
from bank accounts, loans you make to others, interest for 2023. You must include the $575 in year, you can't withdraw any part of the deposit
and other sources. The following are some your income. If you itemize your deductions on because:
sources of taxable interest. Schedule A (Form 1040), you can deduct $310, • The financial institution is bankrupt or in-
Dividends that are actually interest. Certain subject to the net investment income limit. solvent, or
distributions commonly called dividends are ac- Gift for opening account. If you receive non- • The state where the institution is located
tually interest. You must report as interest cash gifts or services for making deposits or for has placed limits on withdrawals because
so-called dividends on deposits or on share ac- opening an account in a savings institution, you other financial institutions in the state are
counts in: may have to report the value as interest. bankrupt or insolvent.
• Cooperative banks, For deposits of less than $5,000, gifts or
services valued at more than $10 must be re-
• Credit unions, ported as interest. For deposits of $5,000 or
• Domestic building and loan associations, more, gifts or services valued at more than $20
must be reported as interest. The value is
56 Chapter 6 Interest Income Publication 17 (2023)

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The amount of interest you must exclude is If you prefer, write to: Reporting options for cash method tax-
the interest that was credited on the frozen de- payers. If you use the cash method of report-
posits minus the sum of: ing income, you can report the interest on Ser-
• The net amount you withdrew from these Treasury Retail Securities Services ies EE and Series I bonds in either of the
deposits during the year, and P.O. Box 9150 following ways.
Minneapolis, MN 55480-9150
• The amount you could have withdrawn as 1. Method 1. Postpone reporting the interest
of the end of the year (not reduced by any until the earlier of the year you cash or dis-
pose of the bonds or the year they mature.
penalty for premature withdrawals of a time Accrual method taxpayers. If you use an ac- (However, see Savings bonds traded,
deposit). crual method of accounting, you must report in- later.)
If you receive a Form 1099-INT for interest in- terest on U.S. savings bonds each year as it ac- Note. Series EE bonds issued in 1993
come on deposits that were frozen at the end of crues. You can't postpone reporting interest matured in 2023. If you used method 1,
2023, see Frozen deposits under How To Re- until you receive it or until the bonds mature. Ac- you must generally report the interest on
port Interest Income in Publication 550, chap- crual methods of accounting are explained in these bonds on your 2023 return.
ter 1 for information about reporting this interest chapter 1 under Accounting Methods.
2. Method 2. Choose to report the increase
income exclusion on your tax return. Cash method taxpayers. If you use the cash in redemption value as interest each year.
The interest you exclude is treated as credi- method of accounting, as most individual tax-
ted to your account in the following year. You payers do, you generally report the interest on You must use the same method for all Series EE
must include it in income in the year you can U.S. savings bonds when you receive it. The and Series I bonds you own. If you don't choose
withdraw it. cash method of accounting is explained in method 2 by reporting the increase in redemp-
chapter 1 under Accounting Methods. But see tion value as interest each year, you must use
Example. $100 of interest was credited on Reporting options for cash method taxpayers, method 1.
your frozen deposit during the year. You with- later. If you plan to cash your bonds in the
drew $80 but couldn't withdraw any more as of
the end of the year. You must include $80 in Series H and HH bonds. These bonds were TIP same year you will pay for higher edu-
your income and exclude $20 from your income issued at face value in exchange for other sav- cation expenses, you may want to use
for the year. You must include the $20 in your in- ings bonds. Series HH bonds were issued be- method 1 because you may be able to exclude
come for the year you can withdraw it. tween 1980 and 2004. They mature 20 years af- the interest from your income. To learn how, see
ter issue. Series HH bonds that have not Education Savings Bond Program, later.
Bonds traded flat. If you buy a bond at a dis- matured pay interest twice a year (usually by di-
count when interest has been defaulted or when rect deposit to your bank account). If you are a Change from method 1. If you want to
the interest has accrued but hasn't been paid, cash method taxpayer, you must report this in- change your method of reporting the interest
the transaction is described as trading a bond terest as income in the year you receive it. from method 1 to method 2, you can do so with-
flat. The defaulted or unpaid interest isn't in- Series H bonds were issued before 1980. All out permission from the IRS. In the year of
come and isn't taxable as interest if paid later. Series H bonds have matured and are no longer change, you must report all interest accrued to
When you receive a payment of that interest, it earning interest. date and not previously reported for all your
is a return of capital that reduces the remaining
cost basis of your bond. Interest that accrues In addition to the twice-a-year interest pay- bonds.
after the date of purchase, however, is taxable ments, most H/HH bonds have a deferred inter- Once you choose to report the interest each
interest income for the year it is received or ac- est component. The reporting of this as income year, you must continue to do so for all Series
crued. See Bonds Sold Between Interest Dates, is addressed later in this chapter. EE and Series I bonds you own and for any you
later, for more information. Series EE and Series I bonds. Interest on get later, unless you request permission to
Below-market loans. Generally, a “below-mar- these bonds is payable when you redeem the change, as explained next.
ket loan” means any loan if (A) in the case of a bonds. The difference between the purchase
gift or demand loan, interest is payable on the price and the redemption value is taxable inter- Change from method 2. To change from
loan at a rate less than the applicable Federal est. method 2 to method 1, you must request per-
mission from the IRS. Permission for the
rate, or (B) in the case of a term loan, the Series E and EE bonds. Series E bonds change is automatically granted if you send the
amount loaned exceeds the present value (us- were issued before July 1980. All Series E IRS a statement that meets all the following re-
ing a discount rate equal to the applicable Fed- bonds have matured and are no longer earning quirements.
eral rate) of all payments due under the loan. interest. Series EE bonds were first offered in
(See Code section 7872 for details.) Section January 1980 and have a maturity period of 30 1. You have typed or printed the following
7872 applies to certain below-market loans, in- years; they were offered in paper (definitive) number at the top: “131.”
cluding gift loans, compensation-related loans, form until 2012. Paper Series EE and Series E 2. It includes your name and social security
and corporation-shareholder loans. (See Code bonds were issued at a discount and increase number under “131.”
section 7872(c).) If you are the lender of a be- in value as they earn interest. Electronic
low-market loan, you may have additional inter- (book-entry) Series EE bonds were first offered 3. It includes the year of change (both the be-
est income. See Below-Market Loans in Publi- in 2003; they are issued at face value and in- ginning and ending dates).
cation 550, chapter 1 for more information. crease in value as they earn interest. For all 4. It identifies the savings bonds for which
Series E and Series EE bonds, the purchase you are requesting this change.
price plus all accrued interest is payable to you
U.S. Savings Bonds at redemption. 5. It includes your agreement to:
This section provides tax information on U.S. Series I bonds. Series I bonds were first of- a. Report all interest on any bonds ac-
savings bonds. It explains how to report the in- fered in 1998. These are inflation-indexed quired during or after the year of
terest income on these bonds and how to treat bonds issued at face value with a maturity pe- change when the interest is realized
transfers of these bonds. riod of 30 years. Series I bonds increase in upon disposition, redemption, or final
U.S. savings bonds currently offered to indi- value as they earn interest. The face value plus maturity, whichever is earliest; and
viduals include Series EE bonds and Series I all accrued interest is payable to you at redemp- b. Report all interest on the bonds ac-
bonds. tion. quired before the year of change
For information about U.S. savings when the interest is realized upon dis-
bonds, go to TreasuryDirect.gov/ position, redemption, or final maturity,
savings-bonds/. whichever is earliest, with the excep-
tion of the interest reported in prior tax
years.

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Table 6-1. Who Pays the Tax on U.S. Savings Bond Interest be taxable to you, you can continue to defer re-
porting the interest earned each year. You must
IF... THEN the interest must be reported by... include the total interest in your income in the
you buy a bond in your name and the name of another you. year you cash or dispose of the bonds or the
person as co-owners, using only your own funds year the bonds finally mature, whichever is ear-
you buy a bond in the name of another person, who is the the person for whom you bought the bond. lier.
sole owner of the bond
The same rules apply to previously unrepor-
you and another person buy a bond as co-owners, each both you and the other co-owner, in proportion to the ted interest on Series EE or Series E bonds if
contributing part of the purchase price amount each paid for the bond.
the transfer to a trust consisted of Series HH
you and your spouse, who live in a community property you and your spouse. If you file separate returns, both you bonds you acquired in a trade for the Series EE
state, buy a bond that is community property and your spouse generally report one-half of the interest.
or Series E bonds. See Savings bonds traded,
You must attach this statement to your tax and have not previously reported. But, if the later.
return for the year of change, which you must bonds were reissued in your name alone, you Decedents. The manner of reporting interest
file by the due date (including extensions). don't have to report the interest accrued at that income on Series EE or Series I bonds, after the
You can have an automatic extension of 6 time. death of the owner (decedent), depends on the
months from the due date of your return for the This same rule applies when bonds (other accounting and income-reporting methods pre-
year of change (excluding extensions) to file the than bonds held as community property) are viously used by the decedent. This is explained
statement with an amended return. On the transferred between spouses or incident to di- in Publication 550, chapter 1.
statement, type or print “Filed pursuant to sec- vorce.
tion 301.9100-2.” To get this extension, you Savings bonds traded. Prior to September
must have filed your original return for the year Purchased jointly. If you and a co-owner 2004, you could trade (exchange) Series E or
of the change by the due date (including exten- each contributed funds to buy Series EE or Ser- EE bonds for Series H or HH bonds. At the time
sions). ies I bonds jointly and later have the bonds reis- of the trade, you had the choice to postpone
Instead of filing this statement, you can re- sued in the co-owner's name alone, you must (defer) reporting the interest earned on your
quest permission to change from method 2 to include in your gross income for the year of reis- Series E or EE bonds until the Series H or HH
method 1 by filing Form 3115, Application for sue your share of all the interest earned on the bonds received in the trade were redeemed or
Change in Accounting Method. In that case, fol- bonds that you have not previously reported. matured. Any cash you received in the transac-
low the form instructions for an automatic The former co-owner doesn't have to include in tion was income up to the amount of the interest
change. No user fee is required. gross income at the time of reissue his or her that had accrued on the Series E or EE bonds.
share of the interest earned that was not repor- The amount of income that you chose to post-
Co-owners. If a U.S. savings bond is issued in ted before the transfer. This interest, however, pone reporting was recorded on the face of the
the names of co-owners, such as you and your as well as all interest earned after the reissue, is Series H or HH bonds as “Deferred Interest”;
child or you and your spouse, interest on the income to the former co-owner. this amount is also equal to the difference be-
bond is generally taxable to the co-owner who This income-reporting rule also applies tween the redemption value of the Series H or
bought the bond. when a new co-owner purchases your share of HH bonds and your cost. Your cost is the sum of
the bond and the bonds are reissued in the the amount you paid for the exchanged Series E
One co-owner's funds used. If you used name of your former co-owner and a new or EE bonds plus any amount you had to pay at
your funds to buy the bond, you must pay the co-owner. But the new co-owner will report only the time of the transaction.
tax on the interest. This is true even if you let the his or her share of the interest earned after the
other co-owner redeem the bond and keep all transfer. Example. You traded Series EE bonds (on
the proceeds. Under these circumstances, the If bonds that you and a co-owner bought which you postponed reporting the interest) for
co-owner who redeemed the bond will receive a jointly are reissued to each of you separately in $2,500 in Series HH bonds and $223 in cash.
Form 1099-INT at the time of redemption and the same proportion as your contribution to the You reported the $223 as taxable income on
must provide you with another Form 1099-INT purchase price, neither you nor your co-owner your tax return. At the time of the trade, the Ser-
showing the amount of interest from the bond has to report at that time the interest earned be- ies EE bonds had accrued interest of $523 and
taxable to you. The co-owner who redeemed fore the bonds were reissued. a redemption value of $2,723. You hold the Ser-
the bond is a “nominee.” See Nominee distribu- ies HH bonds until maturity, when you receive
tions under How To Report Interest Income in Example 1. You and your spouse each $2,500. You must report $300 as interest in-
Publication 550, chapter 1 for more information spent an equal amount to buy a $1,000 Series come in the year of maturity. This is the differ-
about how a person who is a nominee reports EE savings bond. The bond was issued to you ence between their redemption value, $2,500,
interest income belonging to another person. and your spouse as co-owners. You both post- and your cost, $2,200 (the amount you paid for
Both co-owners' funds used. If you and pone reporting interest on the bond. You later the Series EE bonds). It is also the difference
the other co-owner each contribute part of the have the bond reissued as two $500 bonds, one between the accrued interest of $523 on the
bond's purchase price, the interest is generally in your name and one in your spouse's name. At Series EE bonds and the $223 cash received
taxable to each of you, in proportion to the that time, neither you nor your spouse has to re- on the trade.
amount each of you paid. port the interest earned to the date of reissue.
Note. The $300 amount that is reportable
Community property. If you and your Example 2. You bought a $1,000 Series EE upon redemption or maturity may be found re-
spouse live in a community property state and savings bond entirely with your own funds. The corded on the face of the Series HH bond as
hold bonds as community property, one-half of bond was issued to you and your spouse as “Deferred Interest.” If more than one Series HH
the interest is considered received by each of co-owners. You both postpone reporting interest bond is received in the exchange, the total
you. If you file separate returns, each of you on the bond. You later have the bond reissued amount of interest postponed/deferred in the
must generally report one-half of the bond inter- as two $500 bonds, one in your name and one transaction is divided proportionately among
est. For more information about community in your spouse's name. You must report half the the Series HH bonds.
property, see Pub. 555. interest earned to the date of reissue.
Choice to report interest in year of trade.
Table 6-1. These rules are also shown in Ta- Transfer to a trust. If you own Series EE or You can choose to treat all of the previously un-
ble 6-1. Series I bonds and transfer them to a trust, giv- reported accrued interest on the Series EE
ing up all rights of ownership, you must include bonds traded for Series HH bonds as income in
Ownership transferred. If you bought Series in your income for that year the interest earned the year of the trade. If you made this choice, it
EE or Series I bonds entirely with your own to the date of transfer if you have not already re- is treated as a change from method 1. See
funds and had them reissued in your co-owner's ported it. However, if you are considered the Change from method 1, earlier. If you choose to
name or beneficiary's name alone, you must in- owner of the trust and if the increase in value report the interest, then the “Deferred Interest”
clude in your gross income for the year of reis- both before and after the transfer continues to
sue all interest that you earned on these bonds
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notation on the face of the Series HH bonds re- Interest on U.S. savings bonds is ex- 2. Expenses used to figure the tax-free por-
ceived in the trade will be $0 or blank. TIP empt from state and local taxes. The tion of distributions from a Coverdell ESA.
Form 1099-INT you receive will indi- 3. Expenses used to figure the tax-free por-
Form 1099-INT for U.S. savings bonds inter- cate the amount that is for U.S. savings bond in- tion of distributions from a qualified tuition
est. When you cash a bond, the bank or other terest in box 3. Do not include this income on program.
payer that redeems it must give you a Form your state or local income tax return.
1099-INT if the interest part of the payment you 4. Any tax-free payments (other than gifts or
receive is $10 or more. Box 3 of your Form inheritances) received for educational ex-
1099-INT should show the interest as the differ- penses, such as:
ence between the amount you received and the Education Savings Bond
amount paid for the bond. However, your Form Program a. Veterans' educational assistance ben-
1099-INT may show more interest than you efits,
have to include on your income tax return. For You may be able to exclude from income all or b. Qualified tuition reductions, or
example, this may happen if any of the following part of the interest you receive on the redemp-
are true. tion of qualified U.S. savings bonds during the c. Employer-provided educational assis-
year if you pay qualified higher educational ex- tance.
• You chose to report the increase in the re- penses during the same year. This exclusion is 5. Any expense used in figuring the Ameri-
demption value of the bond each year. The known as the Education Savings Bond Pro- can opportunity and lifetime learning cred-
interest shown on your Form 1099-INT gram. its.
won't be reduced by amounts previously You don't qualify for this exclusion if your fil-
included in income. ing status is married filing separately. Amount excludable. If the total proceeds
• You received the bond from a decedent. (interest and principal) from the qualified U.S.
The interest shown on your Form 1099-INT Form 8815. Use Form 8815 to figure your savings bonds you redeem during the year
won't be reduced by any interest reported exclusion. Attach the form to your Form 1040 or aren't more than your adjusted qualified higher
by the decedent before death, or on the 1040-SR. education expenses for the year, you may be
decedent's final return, or by the estate on Qualified U.S. savings bonds. A qualified able to exclude all of the interest. If the pro-
the estate's income tax return. U.S. savings bond is a Series EE bond issued ceeds are more than the expenses, you may be
• Ownership of the bond was transferred. after 1989 or a Series I bond. The bond must be able to exclude only part of the interest.
The interest shown on your Form 1099-INT issued either in your name (sole owner) or in To determine the excludable amount, multi-
won't be reduced by interest that accrued your and your spouse's names (co-owners). ply the interest part of the proceeds by a frac-
before the transfer. You must be at least 24 years old before the tion. The numerator of the fraction is the quali-
Note. This is true for paper bonds, but bond's issue date. For example, a bond bought fied higher education expenses you paid during
the Treasury reporting process for elec- by a parent and issued in the name of his or her the year. The denominator of the fraction is the
tronic bonds is more refined—if Treasury is child under age 24 doesn't qualify for the exclu- total proceeds you received during the year.
aware that the transfer of an electronic sav- sion by the parent or child.
Example. In January 2023, Mark and Joan,
ings bond is a reportable event, then the The issue date of a bond may be ear- a married couple, cashed qualified Series EE
transferor will receive a Form 1099-INT for ! lier than the date the bond is pur- U.S. savings bonds with a total denomination of
the year of the transfer for the interest ac- CAUTION chased because the issue date as- $10,000 that they bought in January 2007 for
crued up to the time of the transfer; when signed to a bond is the first day of the month in $5,000. They received proceeds of $8,848, rep-
the transferee later disposes of the bond which it is purchased. resenting principal of $5,000 and interest of
(redemption, maturity, or further transfer),
$3,848. In 2023, they paid $4,000 of their
the transferee will receive a Form 1099-INT Beneficiary. You can designate any individual daughter's college tuition. They aren't claiming
reduced by the amount reported to the (including a child) as a beneficiary of the bond. an education credit for that amount, and their
transferor at the time of the original trans-
daughter doesn't have any tax-free educational
fer. Verification by IRS. If you claim the exclu- assistance. They can exclude $1,739.60
• You were named as a co-owner, and the sion, the IRS will check it by using bond re- ($3,848 × ($4,000 ÷ $8,848)) of interest in 2023.
other co-owner contributed funds to buy demption information from the Department of They must include the remaining $2,108.40
the bond. The interest shown on your Form the Treasury. ($3,848 − $1,739.60) interest in gross income.
1099-INT won't be reduced by the amount Qualified expenses. Qualified higher edu- Modified adjusted gross income limit.
you received as nominee for the other cation expenses are tuition and fees required The interest exclusion is limited if your modified
co-owner. (See Co-owners, earlier in this for you, your spouse, or your dependent (for adjusted gross income (modified AGI) is:
chapter, for more information about the re- whom you claim an exemption) to attend an eli-
porting requirements.) gible educational institution. • $137,800 to $167,800 for married taxpay-
• You received the bond in a taxable distribu- Qualified expenses include any contribution ers filing jointly, and
tion from a retirement or profit-sharing you make to a qualified tuition program or to a • $91,850 to $106,850 for all other taxpay-
plan. The interest shown on your Form Coverdell education savings account (ESA). ers.
1099-INT won't be reduced by the interest Qualified expenses don't include expenses You don't qualify for the interest exclusion if your
portion of the amount taxable as a distribu- for room and board or for courses involving modified AGI is equal to or more than the upper
tion from the plan and not taxable as inter- sports, games, or hobbies that aren't part of a limit for your filing status.
est. (This amount is generally shown on degree- or certificate-granting program. Modified AGI, for purposes of this exclusion,
Form 1099-R, Distributions From Pen- is adjusted gross income (Form 1040 or
sions, Annuities, Retirement or Profit-Shar- Eligible educational institutions. These
ing Plans, IRAs, Insurance Contracts, etc., institutions include most public, private, and 1040-SR, line 11) figured before the interest ex-
for the year of distribution.) nonprofit universities, colleges, and vocational clusion, and modified by adding back any:
schools that are accredited and eligible to par- 1. Foreign earned income exclusion,
For more information on including the cor- ticipate in student aid programs run by the U.S.
rect amount of interest on your return, see How Department of Education. 2. Foreign housing exclusion and deduction,
To Report Interest Income, later. Pub. 550 in- 3. Exclusion of income for bona fide resi-
cludes examples showing how to report these Reduction for certain benefits. You must
amounts. reduce your qualified higher education expen- dents of American Samoa,
ses by all of the following tax-free benefits. 4. Exclusion for income from Puerto Rico,
1. Tax-free part of scholarships and fellow- 5. Exclusion for adoption benefits received
ships (see Scholarships and fellowships in under an employer's adoption assistance
chapter 8). program, and
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6. Deduction for student loan interest. Or, on the Internet, go to For information on federally guaranteed
TreasuryDirect.gov/marketable- bonds, mortgage revenue bonds, arbitrage
Use the Line 9 Worksheet in the Form 8815 securities/. bonds, private activity bonds, qualified bonds,
instructions to figure your modified AGI. and tax credit bonds, including whether interest
If you have investment interest expense in- For information on Series EE, Series I, and on some of these bonds is taxable, see State or
curred to earn royalties and other investment in- Series HH savings bonds, see U.S. Savings Local Government Obligations in Publication
come, see Education Savings Bond Program Bonds, earlier. 550, chapter 1.
and Royalties included in modified AGI in Publi-
cation 550, chapter 1. Treasury inflation-protected securities Information reporting requirement. If you file
(TIPS). These securities pay interest twice a a tax return, you are required to show any
Recordkeeping. If you claim the inter- year at a fixed rate, based on a principal amount tax-exempt interest you received on your return.
est exclusion, you must keep a written adjusted to take into account inflation and defla- Tax-exempt interest paid to you will be reported
RECORDS record of the qualified U.S. savings tion. For the tax treatment of these securities, to you on Form 1099-INT, box 8. This is an infor-
bonds you redeem. Your record must include see Inflation-Indexed Debt Instruments under mation reporting requirement only. It doesn't
the serial number, issue date, face value, and Original Issue Discount (OID) in IRS.gov/ change tax-exempt interest to taxable interest.
total redemption proceeds (principal and inter- Pub550.
est) of each bond. You can use Form 8818 to
record this information. You should also keep Original Issue Discount
bills, receipts, canceled checks, or other docu- Bonds Sold Between
(OID)
mentation that shows you paid qualified higher Interest Dates
education expenses during the year. OID is a form of interest. You generally include
If you sell a bond between interest payment OID in your income as it accrues over the term
dates, part of the sales price represents interest of the debt instrument, whether or not you re-
U.S. Treasury Bills, accrued to the date of sale. You must report that ceive any payments from the issuer.
part of the sales price as interest income for the A debt instrument generally has OID when
Notes, and Bonds year of sale. the instrument is issued for a price that is less
Treasury bills, notes, and bonds are direct debts If you buy a bond between interest payment than its stated redemption price at maturity. OID
(obligations) of the U.S. Government. dates, part of the purchase price represents in- is the difference between the stated redemption
terest accrued before the date of purchase. price at maturity and the issue price.
Taxation of interest. Interest income from When that interest is paid to you, treat it as a All debt instruments that pay no interest be-
Treasury bills, notes, and bonds is subject to nontaxable return of your capital investment, fore maturity are presumed to be issued at a
federal income tax but is exempt from all state rather than as interest income. See Accrued in- discount. Zero coupon bonds are one example
and local income taxes. You should receive a terest on bonds under How To Report Interest of these instruments.
Form 1099-INT showing the interest paid to you Income in Publication 550, chapter 1 for infor-
for the year in box 3. mation on reporting the payment. The OID accrual rules generally don't apply
to short-term obligations (those with a fixed ma-
Treasury bills. These bills generally have a turity date of 1 year or less from date of issue).
4-week, 8-week, 13-week, 26-week, or 52-week Insurance See Discount on Short-Term Obligations in
maturity period. They are generally issued at a Publication 550, chapter 1.
discount in the amount of $100 and multiples of Life insurance proceeds paid to you as benefi-
$100. The difference between the discounted ciary of the insured person are usually not taxa- De minimis OID. You can treat the discount as
price you pay for the bills and the face value you ble. But if you receive the proceeds in install- zero if it is less than one-fourth of 1% (0.0025)
receive at maturity is interest income. Generally, ments, you must usually report a part of each of the stated redemption price at maturity multi-
you report this interest income when the bill is installment payment as interest income. plied by the number of full years from the date
of original issue to maturity. This small discount
paid at maturity. If you paid a premium for a bill For more information about insurance pro- is known as de minimis OID.
(more than the face value), you generally report ceeds received in installments, see Pub. 525,
the premium as a section 171 deduction when Taxable and Nontaxable Income. Example 1. You bought a 10-year bond
the bill is paid at maturity.
If you reinvest your Treasury bill at its matur- Annuity. If you buy an annuity with life insur- with a stated redemption price at maturity of
ity in a new Treasury bill, note, or bond, you will ance proceeds, the annuity payments you re- $1,000, issued at $980 with OID of $20.
receive payment for the difference between the ceive are taxed as pension and annuity income One-fourth of 1% of $1,000 (stated redemption
proceeds of the maturing bill (par amount less from a nonqualified plan, not as interest income. price) times 10 (the number of full years from
any tax withheld) and the purchase price of the See chapter 5 for information on pension and the date of original issue to maturity) equals
new Treasury security. However, you must re- annuity income from nonqualified plans. $25. Because the $20 discount is less than $25,
port the full amount of the interest income on the OID is treated as zero. (If you hold the bond
at maturity, you will recognize $20 ($1,000 −
each of your Treasury bills at the time it reaches State or Local $980) of capital gain.)
maturity.
Government Obligations
Treasury notes and bonds. Treasury notes Example 2. The facts are the same as in
generally have maturity periods of more than 1 Interest on a bond used to finance government Example 1, except that the bond was issued at
year, ranging up to 10 years. Maturity periods operations generally isn't taxable if the bond is $950. The OID is $50. Because the $50 dis-
for Treasury bonds are generally longer than 10 issued by a state, the District of Columbia, a ter- count is more than the $25 figured in Exam-
years. Both are generally issued in denomina- ritory of the United States, or any of their politi- ple 1, you must include the OID in income as it
tions of $100 to $1,000,000 and generally pay cal subdivisions. accrues over the term of the bond.
interest every 6 months. Generally, you report Bonds issued after 1982 by an Indian tribal Debt instrument bought after original is-
this interest for the year paid. For more informa- government (including tribal economic develop- sue. If you buy a debt instrument with de mini-
tion, see U.S. Treasury Bills, Notes, and Bonds ment bonds issued after February 17, 2009) are mis OID at a premium, the de minimis OID isn't
in Publication 550, chapter 1. treated as issued by a state. Interest on these includible in income. If you buy a debt instru-
For other information on Treasury notes bonds is generally tax exempt if the bonds are ment with de minimis OID at a discount, the dis-
or bonds, write to: part of an issue of which substantially all pro- count is reported under the market discount
ceeds are to be used in the exercise of any es- rules. See Market Discount Bonds in Publica-
Treasury Retail Securities Services sential government function. However, the es- tion 550, chapter 1.
P.O. Box 9150 sential government function requirement does
Minneapolis, MN 55480-9150 not apply to tribal economic development bonds Exceptions to reporting OID as current in-
issued after February 17, 2009. See section come. The OID rules discussed in this chapter
7871(f). don't apply to the following debt instruments.
60 Chapter 6 Interest Income Publication 17 (2023)

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1. Tax-exempt obligations. (However, see Pub. 1212 and the Form 1099-OID Instructions use the cash method, you must include in in-
Stripped tax-exempt obligations under for Recipient. come on your 2023 return the $163.20 interest
Stripped Bonds and Coupons in Publica- If you acquired your debt instrument after you received in that year.
tion 550, chapter 1.) 2013, unless you have informed your payer that
2. U.S. savings bonds. you do not want to amortize bond premium, Constructive receipt. You constructively re-
your payer must generally report either (1) a net ceive income when it is credited to your account
3. Short-term debt instruments (those with a amount of OID that reflects the offset of OID by or made available to you. You don't need to
fixed maturity date of not more than 1 year the amount of bond premium or acquisition pre- have physical possession of it. For example,
from the date of issue). mium amortization for the year, or (2) a gross you are considered to receive interest, divi-
4. Loans between individuals if all the follow- amount for both the OID and the bond premium dends, or other earnings on any deposit or ac-
ing are true. or acquisition premium amortization for the count in a bank, savings and loan, or similar fi-
year. nancial institution, or interest on life insurance
a. The loan is not made in the course of policy dividends left to accumulate, when they
a trade or business of the lender. Refiguring periodic interest shown on Form are credited to your account and subject to your
1099-OID. If you disposed of a debt instrument withdrawal.
b. The amount of the loan, plus the or acquired it from another holder during the You constructively receive income on the de-
amount of any outstanding prior loans year, see Bonds Sold Between Interest Dates, posit or account even if you must:
between the same individuals, is earlier, for information about the treatment of
$10,000 or less. periodic interest that may be shown in box 2 of • Make withdrawals in multiples of even
c. Avoiding any federal tax isn't one of Form 1099-OID for that instrument. amounts;
the principal purposes of the loan. Certificates of deposit (CDs). A CD is a debt • Give a notice to withdraw before making
5. A debt instrument purchased at a pre- instrument. If you buy a CD with a maturity of the withdrawal;
mium. more than 1 year, you must include in income • Withdraw all or part of the account to with-
each year a part of the total interest due and re- draw the earnings; or
Form 1099-OID. The issuer of the debt instru- port it in the same manner as other OID.
ment (or your broker if you held the instrument This also applies to similar deposit arrange- • Pay a penalty on early withdrawals, unless
the interest you are to receive on an early
through a broker) should give you Form ments with banks, building and loan associa- withdrawal or redemption is substantially
1099-OID, or a similar statement, if the total OID tions, etc., including: less than the interest payable at maturity.
for the calendar year is $10 or more. Form Time deposits,
1099-OID will show, in box 1, the amount of OID • Accrual method. If you use an accrual
for the part of the year that you held the bond. It • Bonus plans, method, you report your interest income when
will also show, in box 2, the stated interest you • Savings certificates, you earn it, whether or not you have received it.
must include in your income. Box 8 shows OID Interest is earned over the term of the debt in-
on a U.S. Treasury obligation for the part of the • Deferred income certificates, strument.
year you owned it and isn't included in box 1. A • Bonus savings certificates, and
copy of Form 1099-OID will be sent to the IRS. Example. If, in the previous example, you
Don't file your copy with your return. Keep it for • Growth savings certificates. use an accrual method, you must include the in-
your records. Bearer CDs. CDs issued after 1982 must terest in your income as you earn it. You would
In most cases, you must report the entire generally be in registered form. Bearer CDs are report the interest as follows: 2021, $26.67;
amount in boxes 1, 2, and 8 of Form 1099-OID CDs not in registered form. They aren't issued 2022, $81.06; and 2023, $55.47.
as interest income. But see Refiguring OID in the depositor's name and are transferable Coupon bonds. Interest on bearer bonds with
shown on Form 1099-OID, later in this discus- from one individual to another. detachable coupons is generally taxable in the
sion, for more information. Banks must provide the IRS and the person year the coupon becomes due and payable. It
Form 1099-OID not received. If you had OID redeeming a bearer CD with a Form 1099-INT. doesn't matter when you mail the coupon for
for the year but didn't receive a Form 1099-OID, More information. See Publication 550, chap- payment.
you may have to figure the correct amount of ter 1 for more information about OID and related
OID to report on your return. See Pub. 1212 for topics, such as market discount bonds.
details on how to figure the correct OID. How To Report
Nominee. If someone else is the holder of When To Report Interest Income
record (the registered owner) of an OID instru- Generally, you report all your taxable interest in-
ment belonging to you and receives a Form Interest Income
come on Form 1040 or 1040-SR, line 2b.
1099-OID on your behalf, that person must give
you a Form 1099-OID. When to report your interest income depends
on whether you use the cash method or an ac- Schedule B (Form 1040). You must com-
Refiguring OID shown on Form 1099-OID. crual method to report income. plete Schedule B (Form 1040), Part I, if you file
You may need to refigure the OID shown in Form 1040 or 1040-SR and any of the following
box 1 or box 8 of Form 1099-OID if either of the Cash method. Most individual taxpayers use apply.
following applies. the cash method. If you use this method, you
generally report your interest income in the year 1. Your taxable interest income is more than
• You bought the debt instrument after its in which you actually or constructively receive it. $1,500.
original issue and paid a premium or an ac- However, there are special rules for reporting 2. You are claiming the interest exclusion un-
quisition premium. the discount on certain debt instruments. See der the Education Savings Bond Program
• The debt instrument is a stripped bond or a U.S. Savings Bonds and Original Issue Dis- (discussed earlier).
stripped coupon (including certain zero count (OID), earlier.
coupon instruments). 3. You received interest from a seller-fi-
Example. On September 1, 2021, you nanced mortgage, and the buyer used the
If you acquired your debt instrument before loaned another individual $2,000 at 4% interest, property as a home.
2014, your payer is only required to report a compounded annually. You aren't in the busi- 4. You received a Form 1099-INT for U.S.
gross amount of OID in box 1 or box 8 of Form ness of lending money. The note stated that savings bond interest that includes
1099-OID. principal and interest would be due on August amounts you reported in a previous tax
For information about figuring the correct 31, 2023. In 2023, you received $2,163.20 year.
amount of OID to include in your income, see ($2,000 principal and $163.20 interest). If you
Figuring OID on Long-Term Debt Instruments in 5. You received, as a nominee, interest that
actually belongs to someone else.
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6. You received a Form 1099-INT for interest premium, see the Form 1099-INT Instructions amounts reported on Form 1040-SR, are now
on frozen deposits. for Recipient. reported on Schedule 1.
7. You received a Form 1099-INT for interest Box 4 of Form 1099-INT will contain an • Scholarships and fellowship grants are
on a bond you bought between interest amount if you were subject to backup withhold- now reported on Schedule 1, line 8r.
payment dates. ing. Include the amount from box 4 on Form
1040 or 1040-SR, line 25b (federal income tax • Pension or annuity from a nonqualified de-
8. You are reporting OID in an amount less withheld). ferred compensation plan or a nongovern-
than the amount shown on Form Box 5 of Form 1099-INT shows investment mental section 457 plan is now reported on
1099-OID. expenses. This amount is not deductible. See Schedule 1, line 8t.
9. You reduce interest income from bonds by chapter 12 for more information about invest- • Wages earned while incarcerated are now
amortizable bond premium. ment expenses. reported on Schedule 1, line 8u.
Box 6 of Form 1099-INT shows foreign tax Line 6c on Forms 1040 and 1040-SR. A
In Part I, line 1, list each payer's name and the paid. You may be able to claim this tax as a de- checkbox was added on line 6c. Taxpayers who
amount received from each. If you received a duction or a credit on your Form 1040 or elect to use the lump-sum election method for
Form 1099-INT or Form 1099-OID from a bro- 1040-SR. See your tax return instructions. their benefits will check this box. See
kerage firm, list the brokerage firm as the payer. Box 7 of Form 1099-INT shows the country Lump-Sum Election in Pub. 915, Social Security
The box references discussed below or U.S. territory to which the foreign tax was and Equivalent Railroad Retirement Benefits,
paid. for details.
! are from the January 2022 revisions of
CAUTION Form 1099-INT and Form 1099-DIV. U.S. savings bond interest previously re-
Later revisions may have different box referen- ported. If you received a Form 1099-INT for
ces. U.S. savings bond interest, the form may show Introduction
interest you don't have to report. See Form This chapter explains the federal income tax
Reporting tax-exempt interest. Total your 1099-INT for U.S. savings bonds interest, ear- rules for social security benefits and equivalent
tax-exempt interest (such as interest or accrued lier. tier 1 railroad retirement benefits. It explains the
OID on certain state and municipal bonds, in- On Schedule B (Form 1040), Part I, line 1, following topics.
cluding zero coupon municipal bonds) reported report all the interest shown on your Form
on Form 1099-INT, box 8; Form 1099-OID, 1099-INT. Then follow these steps. • How to figure whether your benefits are
taxable.
box 11; and exempt-interest dividends from a 1. Several rows above line 2, enter a subtotal How to report your taxable benefits.
mutual fund or other regulated investment com- of all interest listed on line 1. •
pany reported on Form 1099-DIV, box 12. Add • How to use the Social Security Benefits
these amounts to any other tax-exempt interest 2. Below the subtotal, enter “U.S. Savings Worksheet (with examples).
you received. Report the total on line 2a of Form Bond Interest Previously Reported” and
1040 or 1040-SR. enter amounts previously reported or inter- • Deductions related to your benefits and
Form 1099-INT, box 9, and Form 1099-DIV, est accrued before you received the bond. how to treat repayments that are more than
the benefits you received during the year.
box 13, show the tax-exempt interest subject to 3. Subtract these amounts from the subtotal
the AMT on Form 6251. These amounts are al- and enter the result on line 2. Social security benefits include monthly re-
ready included in the amounts on Form tirement, survivor, and disability benefits. They
1099-INT, box 8, and Form 1099-DIV, box 12. More information. For more information about don’t include Supplemental Security Income
Don't add the amounts in Form 1099-INT, box 9, how to report interest income, see Publication (SSI) payments, which aren’t taxable.
and Form 1099-DIV, box 13, to, or subtract them 550, chapter 1 or the instructions for the form Equivalent tier 1 railroad retirement benefits
from, the amounts on Form 1099-INT, box 8, you must file. are the part of tier 1 benefits that a railroad em-
and Form 1099-DIV, box 12. ployee or beneficiary would have been entitled
Don't report interest from an IRA as to receive under the social security system.
They are commonly called the social security
! tax-exempt interest. equivalent benefit (SSEB) portion of tier 1 bene-
CAUTION
fits.
Form 1099-INT. Your taxable interest income, If you received these benefits during 2023,
except for interest from U.S. savings bonds and 7. you should have received a Form SSA-1099,
Treasury obligations, is shown in box 1 of Form Social Security Benefit Statement; or Form
1099-INT. Add this amount to any other taxable RRB-1099, Payments by the Railroad Retire-
interest income you received. See the Form ment Board. These forms show the amounts re-
1099-INT Instructions for Recipient if you have Social Security ceived and repaid, and taxes withheld for the
interest from a security acquired at a premium. year. You may receive more than one of these
You must report all of your taxable interest in- forms for the same year. You should add the
come even if you don't receive a Form and Equivalent amounts shown on all the Forms SSA-1099 and
1099-INT. Contact your financial institution if Forms RRB-1099 you receive for the year to de-
you don't receive a Form 1099-INT by February Railroad termine the total amounts received and repaid,
15. Your identifying number may be truncated and taxes withheld for that year. See the Appen-
on any Form 1099-INT you receive. dix at the end of Pub. 915 for more information.
If you forfeited interest income because of Retirement
the early withdrawal of a time deposit, the de- Note. When the term “benefits” is used in
ductible amount will be shown on Form this chapter, it applies to both social security
1099-INT in box 2. See Penalty on early with- Benefits benefits and the SSEB portion of tier 1 railroad
drawal of savings in Publication 550, chapter 1. retirement benefits.
Box 3 of Form 1099-INT shows the interest my Social Security account. Social security
income you received from U.S. savings bonds, Reminders beneficiaries may quickly and easily obtain in-
Treasury bills, Treasury notes, and Treasury formation from the SSA's website with a my So-
bonds. Generally, add the amount shown in Lines 1a through 1z on Forms 1040 and cial Security account to:
box 3 to any other taxable interest income you 1040-SR. Line 1 was expanded and there are • Keep track of your earnings and verify
received. If part of the amount shown in box 3 lines 1a through 1z. Some amounts that in prior them every year,
was previously included in your interest income, years were reported on Form 1040, and some
see U.S. savings bond interest previously repor- • Get an estimate of your future benefits if
ted, later. If you acquired the security at a you are still working,
62 Chapter 7 Social Security and Equivalent Railroad Retirement Publication 17 (2023)
Benefits

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• Get a letter with proof of your benefits if 1. One-half of your benefits; plus
Worksheet 7-1. A Quick Way To Check if Your
you currently receive them, 2. All your other income, including tax-ex- Benefits May Be Taxable
• Change your address, empt interest.
Note. If you plan to file a joint income tax return,
• Start or change your direct deposit, Exclusions. When making this comparison, include your spouse's amounts, if any, on lines
• Get a replacement Medicare card, and don’t reduce your other income by any exclu- A, C, and D.
• Get a replacement Form SSA-1099 for the sions for:
tax season. • Interest from qualified U.S. savings bonds, A. Enter the total amount from
box 5 of all your Forms
For more information and to set up an account, • Employer-provided adoption benefits, SSA-1099 and RRB-1099.
go to SSA.gov/myaccount. • Interest on education loans, Include the full amount of
any lump-sum benefit
What isn’t covered in this chapter. This • Foreign earned income or foreign housing, payments received in 2023,
chapter doesn’t cover the tax rules for the fol- or for 2023 and earlier years.
lowing railroad retirement benefits. (If you received more than
• Income earned by bona fide residents of
• Non-social security equivalent benefit American Samoa or Puerto Rico. one form, combine the
(NSSEB) portion of tier 1 benefits. amounts from box 5 and
Children's benefits. The rules in this chapter enter the total.) . . . . . . . A.
• Tier 2 benefits. apply to benefits received by children. See Who Note. If the amount on line A is zero or less,
• Vested dual benefits. is taxed, later. stop here; none of your benefits are taxable this
• Supplemental annuity benefits. Figuring total income. To figure the total of year.
For information on these benefits, see Pub. 575, one-half of your benefits plus your other in- B. Multiply line A by 50%
Pension and Annuity Income. come, use Worksheet 7-1, discussed later. If (0.50). . . . . . . . . . . . . B.
This chapter doesn’t cover the tax rules for the total is more than your base amount, part of
social security benefits reported on Form your benefits may be taxable. C. Enter your total income that
SSA-1042S, Social Security Benefit Statement; If you are married and file a joint return for is taxable (excluding line A),
or Form RRB-1042S, Statement for Nonresi- 2023, you and your spouse must combine your such as pensions, wages,
dent Alien Recipients of Payments by the Rail- incomes and your benefits to figure whether any interest, ordinary dividends,
road Retirement Board. For information about of your combined benefits are taxable. Even if and capital gain
these benefits, see Pub. 519, U.S. Tax Guide for your spouse didn’t receive any benefits, you distributions. Don’t reduce
Aliens; and Pub. 915. must add your spouse's income to yours to fig- your income by any
This chapter also doesn’t cover the tax rules ure whether any of your benefits are taxable. deductions, exclusions
(listed earlier), or
for foreign social security benefits. These bene- If the only income you received during exemptions. . . . . . . . . . C.
fits are taxable as annuities, unless they are ex- TIP 2023 was your social security or the D. Enter any tax-exempt
empt from U.S. tax or treated as a U.S. social SSEB portion of tier 1 railroad retire-
security benefit under a tax treaty. ment benefits, your benefits generally aren’t tax- interest income, such as
able and you probably don’t have to file a return. interest on municipal
Useful Items If you have income in addition to your benefits, bonds . . . . . . . . . . . . . D.
You may want to see: you may have to file a return even if none of E. Add lines B, C, and D . . . . E.
your benefits are taxable. See Do I Have To File Note. Compare the amount on line E to your
a Return? in chapter 1, earlier; Pub. 501; or your base amount for your filing status. If the
Publication tax return instructions to find out if you have to amount on line E equals or is less than the base
501 501 Dependents, Standard Deduction, file a return. amount for your filing status, none of your
and Filing Information benefits are taxable this year. If the amount on
505 505 Tax Withholding and Estimated Tax Base amount. Your base amount is: line E is more than your base amount, some of
519 519 U.S. Tax Guide for Aliens • $25,000 if you are single, head of house- your benefits may be taxable and you will need
hold, or qualifying surviving spouse; to complete Worksheet 1 in Pub. 915 (or the
Social Security Benefits Worksheet in your tax
•
575 575 Pension and Annuity Income $25,000 if you are married filing separately form instructions). If none of your benefits are
590-A 590-A Contributions to Individual and lived apart from your spouse for all of taxable, but you must otherwise file a tax return,
Retirement Arrangements (IRAs) 2023; see Benefits not taxable, later, under How To
915 915 Social Security and Equivalent • $32,000 if you are married filing jointly; or Report Your Benefits.
Railroad Retirement Benefits $0 if you are married filing separately and
•
Form (and Instructions) lived with your spouse at any time during Example. You and your spouse (both over
2023. 65) are filing a joint return for 2023 and you both
1040-ES 1040-ES Estimated Tax for Individuals received social security benefits during the year.
Worksheet 7-1. You can use Worksheet 7-1 to In January 2024, you received a Form
SSA-1099 SSA-1099 Social Security Benefit figure the amount of income to compare with SSA-1099 showing net benefits of $1,500 in
Statement your base amount. This is a quick way to check box 5. Your spouse received a Form SSA-1099
RRB-1099 RRB-1099 Payments by the Railroad whether some of your benefits may be taxable. showing net benefits of $700 in box 5. You also
Retirement Board received a taxable pension of $30,100 and in-
W-4V W-4V Voluntary Withholding Request terest income of $700. You didn’t have any
tax-exempt interest income. Your benefits aren’t
For these and other useful items, go to IRS.gov/ taxable for 2023 because your income, as fig-
Forms. ured in Worksheet 7-1, isn’t more than your
base amount ($32,000) for married filing jointly.
Even though none of your benefits are taxa-
Are Any of Your ble, you must file a return for 2023 because your
Benefits Taxable? taxable gross income ($30,800) exceeds the
minimum filing requirement amount for your fil-
To find out whether any of your benefits may be ing status.
taxable, compare the base amount (explained
later) for your filing status with the total of:
Publication 17 (2023) Chapter 7 Social Security and Equivalent Railroad Retirement 63
Benefits

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Your gross benefits are shown in box 3 of use the special worksheets in Appendix B
Filled-in Worksheet 7-1. A Quick Way To Form SSA-1099 or RRB-1099. Your repayments of Pub. 590-A to figure both your IRA de-
Check if Your Benefits May Be Taxable are shown in box 4. The amount in box 5 shows duction and your taxable benefits.
Note. If you plan to file a joint income tax return, your net benefits for 2023 (box 3 minus box 4). 2. Situation 1 doesn’t apply and you take an
include your spouse's amounts, if any, on lines Use the amount in box 5 to figure whether any exclusion for interest from qualified U.S.
A, C, and D. of your benefits are taxable. savings bonds (Form 8815), for adoption
Tax withholding and estimated tax. You can benefits (Form 8839), for foreign earned
A. Enter the total amount from choose to have federal income tax withheld income or housing (Form 2555), or for in-
box 5 of all your Forms from your social security benefits and/or the come earned in American Samoa (Form
SSA-1099 and RRB-1099. SSEB portion of your tier 1 railroad retirement 4563) or Puerto Rico by bona fide resi-
Include the full amount of benefits. If you choose to do this, you must dents. In this situation, you must use
any lump-sum benefit complete a Form W-4V. Worksheet 1 in Pub. 915 to figure your tax-
payments received in 2023, able benefits.
for 2023 and earlier years. If you don’t choose to have income tax with-
(If you received more than held, you may have to request additional with- 3. You received a lump-sum payment for an
one form, combine the holding from other income or pay estimated tax earlier year. In this situation, also complete
amounts from box 5 and during the year. For details, see chapter 4, ear- Worksheet 2 or 3 and Worksheet 4 in Pub.
enter the total.) . . . . . . . A. $2,200 lier; Pub. 505; or the Instructions for Form 915. See Lump-sum election next.
1040-ES.
Note. If the amount on line A is zero or less, Lump-sum election. You must include the tax-
stop here; none of your benefits are taxable this able part of a lump-sum (retroactive) payment
year. How To Report Your of benefits received in 2023 in your 2023 in-
B. Multiply line A by 50% Benefits come, even if the payment includes benefits for
(0.50). . . . . . . . . . . . . B. 1,100 an earlier year.
C. Enter your total income that If part of your benefits are taxable, you must use Line 6c: Check the box on line 6c if you
is taxable (excluding line A), Form 1040 or 1040-SR. TIP elect to use the lump-sum election
such as pensions, wages, Reporting on Form 1040 or 1040-SR. Report method for your benefits. If any of your
interest, ordinary dividends, your net benefits (the total amount from box 5 of benefits are taxable for 2023 and they include a
and capital gain all your Forms SSA-1099 and Forms lump-sum benefit payment that was for an ear-
distributions. Don’t reduce RRB-1099) on line 6a and the taxable part on lier year, you may be able to reduce the taxable
your income by any line 6b. If you are married filing separately and amount with the lump-sum election. See
deductions, exclusions you lived apart from your spouse for all of 2023, Lump-Sum Election in Pub. 915 for details.
(listed earlier), or also enter “D” to the right of the word “benefits”
exemptions. . . . . . . . . . C. 30,800 on line 6a. This type of lump-sum benefit payment
TIP shouldn’t be confused with the
D. Enter any tax-exempt Benefits not taxable. Report your net benefits lump-sum death benefit that both the
interest income, such as (the total amount from box 5 of all your Forms SSA and RRB pay to many of their beneficia-
interest on municipal SSA-1099 and Forms RRB-1099) on Form ries. No part of the lump-sum death benefit is
bonds . . . . . . . . . . . . D. -0- 1040 or 1040-SR, line 6a. Enter -0- on Form subject to tax.
E. Add lines B, C, and D . . . E. $31,900 1040 or 1040-SR, line 6b. If you are married fil-
Note. Compare the amount on line E to your ing separately and you lived apart from your Generally, you use your 2023 income to fig-
base amount for your filing status. If the spouse for all of 2023, also enter “D” to the right ure the taxable part of the total benefits re-
amount on line E equals or is less than the base of the word “benefits” on Form 1040 or ceived in 2023. However, you may be able to
amount for your filing status, none of your 1040-SR, line 6a. figure the taxable part of a lump-sum payment
benefits are taxable this year. If the amount on for an earlier year separately, using your income
for the earlier year. You can elect this method if
line E is more than your base amount, some of How Much Is Taxable? it lowers your taxable benefits.
your benefits may be taxable and you will need
to complete Worksheet 1 in Pub. 915 (or the If part of your benefits are taxable, how much is Making the election. If you received a
Social Security Benefits Worksheet in your tax taxable depends on the total amount of your lump-sum benefit payment in 2023 that includes
form instructions). If none of your benefits are benefits and other income. Generally, the higher benefits for one or more earlier years, follow the
taxable, but you otherwise must file a tax return, that total amount, the greater the taxable part of instructions in Pub. 915 under Lump-Sum Elec-
see Benefits not taxable, later, under How To your benefits. tion to see whether making the election will
Report Your Benefits. lower your taxable benefits. That discussion
Maximum taxable part. Generally, up to 50%
Who is taxed. Benefits are included in the tax- of your benefits will be taxable. However, up to also explains how to make the election.
able income (to the extent they are taxable) of 85% of your benefits can be taxable if either of Because the earlier year's taxable ben-
the person who has the legal right to receive the the following situations applies to you. ! efits are included in your 2023 income,
benefits. For example, if you and your child re- • The total of one-half of your benefits and all CAUTION no adjustment is made to the earlier
ceive benefits, but the check for your child is your other income is more than $34,000 year's return. Don’t file an amended return for
made out in your name, you must use only your ($44,000 if you are married filing jointly). the earlier year.
part of the benefits to see whether any benefits • You are married filing separately and lived
are taxable to you. One-half of the part that be- with your spouse at any time during 2023. Examples
longs to your child must be added to your child's
other income to see whether any of those bene- Which worksheet to use. A worksheet you The following are a few examples you can use
fits are taxable to your child. can use to figure your taxable benefits is in the as a guide to figure the taxable part of your ben-
Instructions for Form 1040. You can use either
Repayment of benefits. Any repayment of that worksheet or Worksheet 1 in Pub. 915, un- efits.
benefits you made during 2023 must be sub- less any of the following situations applies to Example 1. George White is single and
tracted from the gross benefits you received in you. files Form 1040 for 2023. He received the fol-
2023. It doesn’t matter whether the repayment
was for a benefit you received in 2023 or in an 1. You contributed to a traditional individual lowing income in 2023.
earlier year. If you repaid more than the gross retirement arrangement (IRA) and you or
benefits you received in 2023, see Repayments your spouse is covered by a retirement
More Than Gross Benefits, later. plan at work. In this situation, you must

64 Chapter 7 Social Security and Equivalent Railroad Retirement Publication 17 (2023)
Benefits

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Fully taxable pension . . . . . . . .        $18,600         Note. If you are married filing separately                     Filled-in Worksheet 1.
Wages from part-time job      . . . . .         9,400        and you lived with your spouse at any               Figuring Your Taxable Benefits
Taxable interest income . . . . . .            990           time in 2023, skip lines 9 through 16, 
                                                             multiply line 8 by 85% (0.85), and enter            1.  Enter the total amount from 
Total . . . . . . . . . . . . . . . . . .    $28,990         the result on line 17. Then, go to line 18.             box 5 of all your Forms 
                                                         10. Is the amount on line 9 less than the                   SSA-1099 and RRB-1099. Also 
George  also  received  social  security  bene-              amount on line 8?                                       enter this amount on Form 1040 
fits  during  2023.  The  Form  SSA-1099  he  re-            STOP                                                    or 1040-SR, line 6a. . . . . . .    $5,600
ceived in January 2024 shows $5,980 in box 5.                No.       None of your benefits are                 2.  Multiply line 1 by 50% (0.50). . .          2,800
To  figure  his  taxable  benefits,  George  com-            taxable. Enter -0- on Form 1040 or                  3.  Combine the amounts from Form 
pletes the worksheet shown here.                             1040-SR, line 6b. If you are married                    1040 or 1040-SR, lines 1z, 2b, 
                                                             filing separately and you lived apart                   3b, 4b, 5b, 7, and 8. . . . . . . .         29,750
          Filled-in Worksheet 1.                             from your spouse for all of 2023, be sure           4.  Enter the amount, if any, from 
Figuring Your Taxable Benefits                               you entered “D” to the right of the word                Form 1040 or 1040-SR, 
                                                             “benefits” on Form 1040 or 1040-SR,                     line 2a. . . . . . . . . . . . . . .        -0-
1. Enter the total amount from                               line 6a.
   box 5 of all your Forms                                   Yes. Subtract line 9 from line 8. . . . .    6,980  5.  Enter the total of any exclusions/
   SSA-1099 and RRB-1099. Also                           11. Enter $12,000 if married filing jointly; or             adjustments for:
   enter this amount on Form 1040                            $9,000 if single, head of household,                    •     Adoption benefits (Form 8839, 
   or 1040-SR, line 6a . . . . . . .    $5,980               qualifying surviving spouse, or married                       line 28),
2. Multiply line 1 by 50% (0.50). . . . . . .  2,990         filing separately and you lived apart                   •     Foreign earned income or housing 
3. Combine the amounts from Form 1040                        from your spouse for all of 2023. . . . .    9,000            (Form 2555, lines 45 and 50), and
   or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7,              12. Subtract line 11 from line 10. If zero or               •     Certain income of bona fide 
   and 8. . . . . . . . . . . . . . . . . . .  28,990        less, enter -0-. . . . . . . . . . . . . . . -0-              residents of American Samoa 
4. Enter the amount, if any, from Form                   13. Enter the smaller of line 10                                  (Form 4563, line 15) or Puerto 
   1040 or 1040-SR, line 2a. . . . . . . .     -0-           or line 11. . . . . . . . . . . . . . . . .  6,980            Rico. . . . . . . .  . . . . . . . .  -0-
5. Enter the total of any exclusions/                    14. Multiply line 13 by 50% (0.50). . . . . .    3,490  6.  Combine lines 2, 3, 4, and 5 
   adjustments for:                                      15. Enter the smaller of line 2 or line 14. .    2,990      above. . . . . . . . . . . . . . .          32,550
   •    Adoption benefits (Form 8839,                    16. Multiply line 12 by 85% (0.85). If line 12          7.  Enter the total of the amounts 
        line 28),                                            is zero, enter -0-. . . . . . . . . . . . .  -0-        from Schedule 1 (Form 1040), 
   •    Foreign earned income or housing                 17. Add lines 15 and 16. . . . . . . . . . .     2,990      lines 11 through 20, and 23 and 
        (Form 2555, lines 45 and 50), and                18. Multiply line 1 by 85% (0.85). . . . . . .   5,083      25. . . . . . . . . . . . . . . . .         1,000
   •    Certain income of bona fide                      19. Taxable benefits. Enter the smaller of              8.  Is the amount on line 7 less than the 
        residents of American Samoa                          line 17 or line 18. Also enter this amount              amount on line 6? 
        (Form 4563, line 15) or Puerto                       on Form 1040 or 1040-SR, line 6b. . .        $2,990       STOP
        Rico. . . . . . . .   . . . . . . . .  -0-                                                                   No.        None of your social security 
6. Combine lines 2, 3, 4, and 5 above. . .     31,980    The  amount  on  line  19  of  George's  work-              benefits are taxable. Enter -0- on Form 
7. Enter the total of the amounts from                sheet  shows  that  $2,990  of  his  social  security          1040 or 1040-SR, line 6b.
                                                                                                                     Yes.  Subtract line 7 from 
   Schedule 1 (Form 1040), lines 11                   benefits is taxable. On line 6a of his Form 1040,              line 6. . . . . . . . . . . . . . .         31,550
   through 20, and 23 and 25. . . . . . . .    -0-    George  enters  his  net  benefits  of  $5,980.  On        9.  If you are:
8. Is the amount on line 7 less than the              line 6b, he enters his taxable benefits of $2,990.             •     Married filing jointly, enter 
   amount on line 6? 
      STOP                                                                                                                 $32,000; or 
   No.        None of your social security               Example  2.        Ray  and  Alice  Hopkins  file  a        •     Single, head of household, 
   benefits are taxable. Enter -0- on Form            joint  return  on  Form  1040  for  2023.  Ray  is  re-              qualifying surviving spouse, or 
   1040 or 1040-SR, line 6b.                          tired  and  received  a  fully  taxable  pension  of                 married filing separately and you 
   Yes.   Subtract line 7 from line 6. . . . . 31,980 $15,500. He also received social security bene-                      lived apart from your spouse for 
9. If you are:                                        fits, and his Form SSA-1099 for 2023 shows net                       all of 2023, enter $25,000. .  . .    32,000
   •    Married filing jointly, enter                 benefits of $5,600 in box 5. Alice worked during               Note. If you are married filing separately 
        $32,000; or                                   the year and had wages of $14,000. She made                    and you lived with your spouse at any 
   •    Single, head of household,                    a  deductible  payment  to  her  IRA  account  of              time in 2023, skip lines 9 through 16, 
        qualifying surviving spouse, or               $1,000 and isn’t covered by a retirement plan at               multiply line 8 by 85% (0.85), and enter 
        married filing separately and you             work. Ray and Alice have two savings accounts                  the result on line 17. Then, go to line 18. 
        lived apart from your spouse for              with a total of $250 in taxable interest income.           10. Is the amount on line 9 less than the 
        all of 2023, enter $25,000. .     . .  25,000 They complete Worksheet 1, shown below, en-                    amount on line 8? 
                                                      tering $29,750 ($15,500 + $14,000 + $250) on                     STOP
                                                      line  3.  They  find  none  of  Ray's  social  security        No.        None of your benefits are 
                                                      benefits are taxable. On Form 1040, they enter                 taxable. Enter -0- on Form 1040 or 
                                                      $5,600 on line 6a and -0- on line 6b.                          1040-SR, line 6b. If you are married 
                                                                                                                     filing separately and you lived apart 
                                                                                                                     from your spouse for all of 2023, be sure 
                                                                                                                     you entered “D” to the right of the word 
                                                                                                                     “benefits” on Form 1040 or 1040-SR, 
                                                                                                                     line 6a.
                                                                                                                     Yes.  Subtract line 9 from line 8. . . . .   

Publication 17 (2023)                          Chapter 7 Social Security and Equivalent Railroad Retirement                                                      65
                                                                               Benefits

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11. Enter $12,000 if married filing jointly; or                    Filled-in Worksheet 1.                           Note. If you are married filing separately 
    $9,000 if single, head of household,                   Figuring Your Taxable Benefits                           and you lived with your spouse at any 
    qualifying surviving spouse, or married                                                                         time in 2023, skip lines 9 through 16, 
    filing separately and you lived apart                  Before you begin:                                        multiply line 8 by 85% (0.85), and enter 
    from your spouse for all of 2023. . . . .              • If you are married filing separately and you lived     the result on line 17. Then, go to line 18. 
12. Subtract line 11 from line 10. If zero or                 apart from your spouse for all of 2023, enter “D” 10. Is the amount on line 9 less than the 
    less, enter -0-. . . . . . . . . . . . . . .              to the right of the word “benefits” on Form 1040      amount on line 8? 
13. Enter the smaller of line 10                              or 1040-SR, line 6a.                                      STOP
    or line 11. . . . . . . . . . . . . . . . .            • Don’t use this worksheet if you repaid benefits        No.       None of your benefits are 
14. Multiply line 13 by 50% (0.50). . . . . .                 in 2023 and your total repayments (box 4 of           taxable. Enter -0- on Form 1040 or 
15. Enter the smaller of line 2 or line 14. .                 Forms SSA-1099 and RRB-1099) were more                1040-SR, line 6b. If you are married 
16. Multiply line 12 by 85% (0.85). If line 12                than your gross benefits for 2023 (box 3 of           filing separately and you lived apart 
    is zero, enter -0-. . . . . . . . . . . . .               Forms SSA-1099 and RRB-1099). None of your            from your spouse for all of 2023, be sure 
17. Add lines 15 and 16. . . . . . . . . . .                  benefits are taxable for 2023. For more               you entered “D” to the right of the word 
18. Multiply line 1 by 85% (0.85). . . . . . .                information, see Repayments More Than Gross           “benefits” on Form 1040 or 1040-SR, 
                                                              Benefits, later.                                      line 6a.
19. Taxable benefits. Enter the smaller of                 • If you are filing Form 8815, Exclusion of Interest     Yes. Subtract line 9 from line 8. . . . .    13,500
    line 17 or line 18. Also enter this amount                From Series EE and I U.S. Savings Bonds           11. Enter $12,000 if married filing jointly; or 
    on Form 1040 or 1040-SR, line 6b . . .                    Issued After 1989, don’t include the amount           $9,000 if single, head of household, 
                                                              from line 2b of Form 1040 or 1040-SR on line 3        qualifying surviving spouse, or married 
Example  3.        Joe  and  Betty  Johnson  file  a          of this worksheet. Instead, include the amount        filing separately and you lived apart 
joint return on Form 1040 for 2023. Joe is a re-              from Schedule B (Form 1040), line 2.                  from your spouse for all of 2023. . . . .    12,000
tired  railroad  worker  and  in  2023  received  the      1. Enter the total amount from                       12. Subtract line 11 from line 10. If zero or 
SSEB portion of tier 1 railroad retirement bene-              box 5 of all your Forms                               less, enter -0-. . . . . . . . . . . . . . .  1,500
fits.  Joe's  Form  RRB-1099  shows  $10,000  in              SSA-1099 and RRB-1099. Also                       13. Enter the smaller of line 10 
box 5. Betty is a retired government worker and               enter this amount on Form 1040                        or line 11. . . . . . . . . . . . . . . . .  12,000
received  a  fully  taxable  pension  of  $38,000.            or 1040-SR, line 6a . . . . . . . $10,000         14. Multiply line 13 by 50% (0.50). . . . . .    6,000
They had $2,300 in taxable interest income plus            2. Multiply line 1 by 50% (0.50). . . . . . .  5,000 15. Enter the smaller of line 2 or line 14. .    5,000
interest  of  $200  on  a  qualified  U.S.  savings        3. Combine the amounts from Form 1040                16. Multiply line 12 by 85% (0.85). If line 12 
bond.  The  savings  bond  interest  qualified  for           or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7,              is zero, enter -0-. . . . . . . . . . . . .  1,275
the exclusion. They figure their taxable benefits             and 8. . . . . . . . . . . . . . . . . . . 40,500 17. Add lines 15 and 16. . . . . . . . . . .     6,275
by completing Worksheet 1, shown below. Be-                4. Enter the amount, if any, from Form               18. Multiply line 1 by 85% (0.85). . . . . . .   8,500
cause they have qualified U.S. savings bond in-               1040 or 1040-SR, line 2a. . . . . . . .     -0-
                                                                                                                19. Taxable benefits. Enter the smaller of 
terest,  they  follow  the  note  at  the  beginning  of   5. Enter the total of any exclusions/                    line 17 or line 18. Also enter this amount 
the worksheet and use the amount from line 2 of               adjustments for:                                      on Form 1040 or 1040-SR, line 6b. . .        $6,275
their  Schedule  B  (Form  1040)  on  line  3  of  the        •    Adoption benefits (Form 8839, 
worksheet instead of the amount from line 2b of                    line 28),                                    More than 50% of Joe's net benefits are tax-
their  Form  1040.  On  line  3  of  the  worksheet,          •    Foreign earned income or housing             able because the income on line 8 of the work-
they enter $40,500 ($38,000 + $2,500).                             (Form 2555, lines 45 and 50), and            sheet  ($45,500)  is  more  than  $44,000.  (See 
                                                              •    Certain income of bona fide                  Maximum taxable part under         How Much Is Tax-
                                                                   residents of American Samoa                  able,  earlier.)  Joe  and  Betty  enter  $10,000  on 
                                                                   (Form 4563, line 15) or Puerto               Form 1040, line 6a; and $6,275 on Form 1040, 
                                                                   Rico. . . . . . . . . . . . . . . .    -0-   line 6b.
                                                           6. Combine lines 2, 3, 4, and 5 above. . .    45,500
                                                           7. Enter the total of the amounts from               Deductions Related to 
                                                              Schedule 1 (Form 1040), lines 11 
                                                              through 20, and 23 and 25. . . . . . . .    -0-   Your Benefits
                                                           8. Is the amount on line 7 less than the             You may be entitled to deduct certain amounts 
                                                              amount on line 6?                                 related to the benefits you receive.
                                                                STOP
                                                              No.      None of your social security             Disability  payments.       You  may  have  received 
                                                              benefits are taxable. Enter -0- on Form           disability payments from your employer or an in-
                                                              1040 or 1040-SR, line 6b.                         surance company that you included as income 
                                                              Yes. Subtract line 7 from line 6. . . . .  45,500 on  your  tax  return  in  an  earlier  year.  If  you  re-
                                                           9. If you are:                                       ceived  a  lump-sum  payment  from  the  SSA  or 
                                                              •    Married filing jointly, enter                RRB, and you had to repay the employer or in-
                                                                   $32,000; or                                  surance  company  for  the  disability  payments, 
                                                              •    Single, head of household,                   you can take an itemized deduction for the part 
                                                                   qualifying surviving spouse, or              of the payments you included in gross income 
                                                                   married filing separately and you 
                                                                   lived apart from your spouse for             in  the  earlier  year.  If  the  amount  you  repay  is 
                                                                   all of 2023, enter $25,000. .   . .   32,000 more than $3,000, you may be able to claim a 
                                                                                                                tax credit instead. Claim the deduction or credit 
                                                                                                                in the same way explained under Repayment of 
                                                                                                                benefits  received  in  an  earlier  year  under Re-
                                                                                                                payments More Than Gross Benefits next.

                                                                                                                Repayments More Than 
                                                                                                                Gross Benefits
                                                                                                                In  some  situations,  your  Form  SSA-1099  or 
                                                                                                                RRB-1099 will show that the total benefits you 
                                                                                                                repaid (box 4) are more than the gross benefits 
                                                                                                                (box 3) you received. If this occurred, your net 

66                                               Chapter 7 Social Security and Equivalent Railroad Retirement                                Publication 17 (2023)
                                                                                Benefits

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benefits in box 5 will be a negative figure (a fig- Useful Items
ure in parentheses) and none of your benefits You may want to see:
will be taxable. Don’t use a worksheet in this
case. If you receive more than one form, a neg- 8.
Publication
ative figure in box 5 of one form is used to offset
a positive figure in box 5 of another form for that 502 502 Medical and Dental Expenses
If you have any questions about this nega- Other Income
same year. 504 504 Divorced or Separated Individuals
tive figure, contact your local SSA office or your 523 523 Selling Your Home
local RRB field office.
525
Joint return. If you and your spouse file a joint What’s New 525 Taxable and Nontaxable Income
return, and your Form SSA-1099 or RRB-1099 544 544 Sales and Other Dispositions of
has a negative figure in box 5, but your spouse's Temporary allowance of 100% business Assets
doesn’t, subtract the amount in box 5 of your meal deduction has expired. Section 210 of
form from the amount in box 5 of your spouse's the Taxpayer Certainty and Disaster Tax Relief 547 547 Casualties, Disasters, and Thefts
form. You do this to get your net benefits when Act of 2020 provided for the temporary allow- 550 550 Investment Income and Expenses
figuring if your combined benefits are taxable. ance of a 100% business meal deduction for
food or beverages provided by a restaurant and 4681 4681 Canceled Debts, Foreclosures,
Example. John and Mary file a joint return paid or incurred after December 31, 2020, and Repossessions, and Abandonments
for 2023. John received Form SSA-1099 show- before January 1, 2023.
ing $3,000 in box 5. Mary also received Form For these and other useful items, go to IRS.gov/
SSA-1099 and the amount in box 5 was ($500). Forms.
John and Mary will use $2,500 ($3,000 minus Reminders
$500) as the amount of their net benefits when
figuring if any of their combined benefits are tax- Unemployment compensation. If you re- Bartering
able. ceived unemployment compensation but did not Bartering is an exchange of property or serv-
receive Form 1099-G, Certain Government Pay- ices. You must include in your income, at the
Repayment of benefits received in an ear- ments, through the mail, you may need to ac- time received, the fair market value of property
lier year. If the total amount shown in box 5 of cess your information through your state’s web- or services you receive in bartering. If you ex-
all of your Forms SSA-1099 and RRB-1099 is a site to get your electronic Form 1099-G. change services with another person and you
negative figure, you may be able to deduct part
of this negative figure that represents benefits both have agreed ahead of time on the value of
you included in gross income in an earlier year if the services, that value will be accepted as fair
the figure is more than $3,000. If the figure is Introduction market value unless the value can be shown to
$3,000 or less, it is a miscellaneous itemized You must include on your return all items of in- be otherwise.
deduction and can no longer be deducted. come you receive in the form of money, prop- Generally, you report this income on Sched-
Deduction more than $3,000. If this de- erty, and services unless the tax law states that ule C (Form 1040), Profit or Loss From Busi-
duction is more than $3,000, you should figure you don’t include them. Some items, however, ness. However, if the barter involves an ex-
your tax two ways. are only partly excluded from income. This change of something other than services, such
chapter discusses many kinds of income and as in Example 3 below, you may have to use an-
1. Figure your tax for 2023 with the itemized explains whether they’re taxable or nontaxable. other form or schedule instead.
deduction included on Schedule A (Form
1040), line 16. • Income that’s taxable must be reported on
your tax return and is subject to tax. Example 1. You’re a self-employed attor-
ney who performs legal services for a client, a
steps. •
2. Figure your tax for 2023 in the following Income that’s nontaxable may have to be small corporation. The corporation gives you
shown on your tax return but isn’t taxable. shares of its stock as payment for your services.
a. Figure the tax without the itemized de- This chapter begins with discussions of the You must include the fair market value of the
duction included on Schedule A following income items. shares in your income on Schedule C (Form
(Form 1040), line 16. 1040) in the year you receive them.
• Bartering.
b. For each year after 1983 for which
part of the negative figure represents • Canceled debts. Example 2. You’re self-employed and a
a repayment of benefits, refigure your • Sales parties at which you’re the host or member of a barter club. The club uses “credit
taxable benefits as if your total bene- hostess. units” as a means of exchange. It adds credit
fits for the year were reduced by that units to your account for goods or services you
part of the negative figure. Then refig- • Life insurance proceeds. provide to members, which you can use to pur-
ure the tax for that year. • Partnership income. chase goods or services offered by other mem-
bers of the barter club. The club subtracts credit
c. Subtract the total of the refigured tax • S corporation income. units from your account when you receive
amounts in (b) from the total of your • Recoveries (including state income tax re- goods or services from other members. You
actual tax amounts. funds). must include in your income the value of the
d. Subtract the result in (c) from the re- • Rents from personal property. credit units that are added to your account,
sult in (a). even though you may not actually receive goods
• Repayments. or services from other members until a later tax
Compare the tax figured in methods 1 and 2. Royalties. year.
Your tax for 2023 is the smaller of the two •
amounts. If method 1 results in less tax, take • Unemployment benefits. Example 3. You own a small apartment
the itemized deduction on Schedule A (Form • Welfare and other public assistance bene- building. In return for 6 months rent-free use of
1040), line 16. If method 2 results in less tax, fits. an apartment, an artist gives you a work of art
claim a credit for the amount from step 2c she created. You must report as rental income
above on Schedule 3 (Form 1040), line 13z. En- These discussions are followed by brief discus- on Schedule E (Form 1040), Supplemental In-
ter “I.R.C. 1341” on the entry line. If both meth- sions of other income items. come and Loss, the fair market value of the art-
ods produce the same tax, deduct the repay- work, and the artist must report as income on
ment on Schedule A (Form 1040), line 16. Schedule C (Form 1040) the fair rental value of
the apartment.
Publication 17 (2023) Chapter 8 Other Income 67

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Form 1099-B from barter exchange. If you included in the amount you realize. You may The cancellation of your loan won’t
exchanged property or services through a bar- have a taxable gain if the amount you realize ex- ! qualify for tax-free treatment if it was
ter exchange, Form 1099-B, Proceeds From ceeds your adjusted basis in the property. Re- CAUTION made by an educational organization or
Broker and Barter Exchange Transactions, or a port any gain on nonbusiness property as a tax-exempt section 501(c)(3) organization and
similar statement from the barter exchange capital gain. was canceled because of the services you per-
should be sent to you by February 15, 2024. It See Pub. 4681 for more information. formed for either organization. See Exception,
should show the value of cash, property, serv- later.
ices, credits, or scrip you received from ex- Stockholder debt. If you’re a stockholder in a
changes during 2023. The IRS will also receive corporation and the corporation cancels or for-
a copy of Form 1099-B. gives your debt to it, the canceled debt is a con- Educational organization described in
structive distribution that’s generally dividend in- section 170(b)(1)(A)(ii). This is an educa-
come to you. For more information, see Pub. tional organization that maintains a regular fac-
Canceled Debts 542, Corporations. ulty and curriculum and normally has a regularly
If you’re a stockholder in a corporation and enrolled body of students in attendance at the
In most cases, if a debt you owe is canceled or you cancel a debt owed to you by the corpora- place where it carries on its educational activi-
forgiven, other than as a gift or bequest, you tion, you generally don’t realize income. This is ties.
must include the canceled amount in your in- because the canceled debt is considered as a
come. You have no income from the canceled contribution to the capital of the corporation Qualified lenders. These include the fol-
debt if it’s intended as a gift to you. A debt in- equal to the amount of debt principal that you lowing.
cludes any indebtedness for which you’re liable canceled. 1. The United States, or an instrumentality or
or which attaches to property you hold. agency thereof.
Repayment of canceled debt. If you included
If the debt is a nonbusiness debt, report the a canceled amount in your income and later pay 2. A state or territory of the United States; or
canceled amount on Schedule 1 (Form 1040), the debt, you may be able to file a claim for re- the District of Columbia; or any political
line 8c. If it’s a business debt, report the amount fund for the year the amount was included in in- subdivision thereof.
on Schedule C (Form 1040) (or on Schedule F come. You can file a claim on Form 1040-X,
(Form 1040), Profit or Loss From Farming, if the Amended U.S. Individual Income Tax Return, if 3. A public benefit corporation that is tax-ex-
debt is farm debt and you’re a farmer). the statute of limitations for filing a claim is still empt under section 501(c)(3); and that
Form 1099-C. If a federal government agency, open. The statute of limitations generally has assumed control of a state, county, or
financial institution, or credit union cancels or doesn’t end until 3 years after the due date of municipal hospital; and whose employees
forgives a debt you owe of $600 or more, you your original return. are considered public employees under
state law.
will receive a Form 1099-C, Cancellation of
4. An educational organization described in
Debt. The amount of the canceled debt is Exceptions section 170(b)(1)(A)(ii), if the loan is
shown in box 2.
Interest included in canceled debt. If any There are several exceptions to the inclusion of made:
interest is forgiven and included in the amount canceled debt in income. These are explained a. As part of an agreement with an entity
of canceled debt in box 2, the amount of inter- next. described in (1), (2), or (3) under
est will also be shown in box 3. Whether or not Student loans. Generally, if you are responsi- which the funds to make the loan were
you must include the interest portion of the can- ble for making loan payments, and the loan is provided to the educational organiza-
celed debt in your income depends on whether canceled or repaid by someone else, you must tion; or
the interest would be deductible when you paid include the amount that was canceled or paid b. Under a program of the educational
it. See Deductible debt under Exceptions, later. on your behalf in your gross income for tax pur- organization that is designed to en-
If the interest wouldn’t be deductible (such poses. However, in certain circumstances, you courage its students to serve in occu-
as interest on a personal loan), include in your may be able to exclude amounts from gross in- pations with unmet needs or in areas
income the amount from box 2 of Form 1099-C. come as a result of the cancellation or repay- with unmet needs where services pro-
If the interest would be deductible (such as on a ment of certain student loans. These exclusions vided by the students (or former stu-
business loan), include in your income the net are for: dents) are for or under the direction of
amount of the canceled debt (the amount a governmental unit or a tax-exempt
shown in box 2 less the interest amount shown • Student loan cancellation due to meeting
in box 3). certain work requirements; section 501(c)(3) organization.
Discounted mortgage loan. If your financial • Cancellation of certain loans after Decem- Special rule for student loan discharges for
ber 31, 2020, and before January 1, 2026 2021 through 2025. The American Rescue
institution offers a discount for the early pay- (see Special rule for student loan dis- Plan Act of 2021 modified the treatment of stu-
ment of your mortgage loan, the amount of the charges for 2021 through 2025); or dent loan forgiveness for discharges in 2021
discount is canceled debt. You must include the through 2025. Generally, if you are responsible
canceled amount in your income. • Certain student loan repayment assistance for making loan payments, and the loan is can-
programs.
Mortgage relief upon sale or other disposi- celed or repaid by someone else, you must in-
tion. If you’re personally liable for a mortgage Exclusion for student loan cancellation due clude the amount that was canceled or paid on
(recourse debt), and you’re relieved of the mort- to meeting certain work requirements. If your behalf in your gross income for tax purpo-
gage when you dispose of the property, you your student loan is canceled in part or in whole ses. However, in certain circumstances, you
may realize gain or loss up to the fair market in 2023 due to meeting certain work require- may be able to exclude this amount from gross
value of the property. Also, to the extent the ments, you may not have to include the can- income if the loan was one of the following.
mortgage discharge exceeds the fair market celed debt in your income. To qualify for this • A loan for postsecondary educational ex-
value of the property, it’s income from discharge work-related exclusion, your loan must have penses.
of indebtedness unless it qualifies for exclusion been made by a qualified lender to assist you in
under Excluded debt, later. Report any income attending an eligible educational organization • A private education loan.
from discharge of indebtedness on nonbusi- described in section 170(b)(1)(A)(ii). In addition, • A loan from an educational organization
ness debt that doesn’t qualify for exclusion as the cancellation must be pursuant to a provision described in section 170(b)(1)(A)(ii).
other income on Schedule 1 (Form 1040), in the student loan that all or part of the debt will
line 8c. be canceled if you work: • A loan from an organization exempt from
tax under section 501(a) to refinance a stu-
If you aren’t personally liable for a mortgage • For a certain period of time, dent loan.
(nonrecourse debt), and you’re relieved of the
mortgage when you dispose of the property • In certain professions, and See Pub. 4681 and Pub. 970 for more informa-
(such as through foreclosure), that relief is • For any of a broad class of employers. tion.
68 Chapter 8 Other Income Publication 17 (2023)

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Loan for postsecondary educational expen-                any loan made by the organization if the loan is       Student  loan  repayment  assistance.         Stu-
ses.   This  is  any  loan  provided  expressly  for     made:                                                  dent loan repayments made to you are tax free 
postsecondary    education,    regardless    of          • As part of an agreement with an entity de-           if you received them for any of the following.
whether  provided  through  the  educational  or-          scribed earlier under which the funds to             • The National Health Service Corps 
ganization  or  directly  to  the  borrower,  if  such     make the loan were provided to the educa-              (NHSC) Loan Repayment Program.
loan was made, insured, or guaranteed by one               tional organization; or                              • A state education loan repayment program 
of the following.
• The United States, or an instrumentality or            • Under a program of the educational organi-             eligible for funds under the Public Health 
                                                           zation that is designed to encourage its               Service Act.
  agency thereof.                                          students to serve in occupations with un-            • Any other state loan repayment or loan for-
• A state or territory of the United States; or            met needs or in areas with unmet needs                 giveness program that is intended to pro-
  the District of Columbia; or any political               where the services provided by the stu-                vide for the increased availability of health 
  subdivision thereof.                                     dents (or former students) are for or under            services in underserved or health profes-
• An eligible educational organization.                    the direction of a governmental unit or                sional shortage areas (as determined by 
                                                           tax-exempt section 501(c)(3) organization.             such a state).
Eligible  educational  organization.   An  eligi-
ble  educational  organization  is  generally  any       Educational organization described in sec-                     You can’t deduct the interest you paid 
accredited public, nonprofit, or proprietary (pri-       tion  170(b)(1)(A)(ii).   This  is  an  educational     !      on  a  student  loan  to  the  extent  pay-
vately  owned  profit-making)  college,  university,     organization that maintains a regular faculty and      CAUTION ments were made through your partici-
vocational school, or other postsecondary edu-           curriculum and normally has a regularly enrolled       pation in any of the above programs.
cational  organization.  Also,  the  organization        body  of  students  in  attendance  at  the  place 
must  be  eligible  to  participate  in  a  student  aid where it carries on its educational activities.        Deductible debt.  You don’t have income from 
program  administered  by  the  U.S.  Department                 The  cancellation  of  your  loan  won’t       the cancellation of a debt if your payment of the 
                                                                                                                debt  would  be  deductible.  This  exception  ap-
An eligible educational organization also in-            CAUTION made by an educational organization, a 
of Education.                                            !       qualify  for  tax-free  treatment  if  it  was plies  only  if  you  use  the  cash  method  of  ac-
cludes  certain  educational  organizations  loca-       tax-exempt section 501(c)(3) organization, or a        counting. For more information, see chapter 5 of 
ted outside the United States that are eligible to       private education lender (as defined in section        Pub. 334, Tax Guide for Small Business.
participate  in  a  student  aid  program  adminis-      140(a)(7) of the Truth in Lending Act) and was         Price  reduced  after  purchase. In  most  ca-
tered by the U.S. Department of Education.               canceled  because  of  the  services  you  per-        ses, if the seller reduces the amount of debt you 
                                                         formed  for  either  such  organization  or  private   owe for property you purchased, you don’t have 
        The  educational  organization  should           education lender. See Exception, later.                income from the reduction. The reduction of the 
TIP     be able to tell you if it is an eligible edu-
                                                                                                                debt is treated as a purchase price adjustment 
        cational organization.                           Section  501(c)(3)  organization.       This  is       and reduces your basis in the property.
                                                         any  corporation,  community  chest,  fund,  or 
Private  education  loan.   A  private  education        foundation  organized  and  operated  exclusively      Excluded debt. Don’t include a canceled debt 
loan is a loan provided by a private educational         for one or more of the following purposes.             in your gross income in the following situations.
lender that:
• Is not made, insured, or guaranteed under              • Charitable.                                          • The debt is canceled in a bankruptcy case 
  Title IV of the Higher Education Act of                • Religious.                                             under title 11 of the U.S. Code. See Pub. 
                                                                                                                  908, Bankruptcy Tax Guide. 
  1965; and                                              • Educational.                                           The debt is canceled when you’re insol-
                                                                                                                •
• Is issued expressly for postsecondary edu-             • Scientific.                                            vent. However, you can’t exclude any 
  cational expenses to a borrower, regard-                                                                        amount of canceled debt that’s more than 
  less of whether the loan is provided                   • Literary.
                                                                                                                  the amount by which you’re insolvent. See 
  through the educational organization that              • Testing for public safety.                             Pub. 908. 
  the student attends or directly to the bor-
  rower from the private educational lender.             • Fostering national or international amateur          • The debt is qualified farm debt and is can-
  A private education loan does not include                sports competition (but only if none of its            celed by a qualified person. See chapter 3 
  an extension of credit under an open end                 activities involve providing athletic facilities       of Pub. 225, Farmer's Tax Guide. 
  consumer credit plan, a reverse mortgage                 or equipment).
                                                                                                                • The debt is qualified real property business 
  transaction, a residential mortgage trans-             • The prevention of cruelty to children or ani-          debt. See chapter 5 of Pub. 334. 
  action, or any other loan that is secured by             mals.
  real property or a dwelling.                                                                                  • The cancellation is intended as a gift.
                                                         Exception.    In most cases, the cancellation 
Private educational lender.    A private educa-          of  a  student  loan  made  by  an  educational  or-   • The debt is qualified principal residence in-
tional lender is one of the following.                   ganization  because  of  services  you  performed        debtedness.
• A financial institution that solicits, makes,          for that organization or another organization that     Forgiveness  of  Paycheck  Protection  Pro-
  or extends private education loans.                    provided  the  funds  for  the  loan  must  be  inclu- gram (PPP) loans.  The forgiveness of a PPP 
                                                         ded in gross income on your tax return.                loan  creates  tax-exempt  income,  so  although 
• A federal credit union that solicits, makes                                                                   you  don't  need  to  report  the  income  from  the 
  or extends private education loans.                    Refinanced  loan.     If  you  refinanced  a  stu-
                                                         dent loan with another loan from an eligible ed-       forgiveness of your PPP loan on Form 1040 or 
• Any other person engaged in the business               ucational  organization  or  a  tax-exempt  organi-    1040-SR, you do need to report certain informa-
  of soliciting, making, or extending private            zation,  that  loan  may  also  be  considered  as     tion related to your PPP loan.
  education loans.                                       made by a qualified lender. The refinanced loan         Rev. Proc. 2021-48, 2021-49 I.R.B. 835, per-
        The  cancellation  of  your  loan  won’t         is considered made by a qualified lender if it’s       mits  taxpayers  to  treat  tax-exempt  income  re-
                                                         made under a program of the refinancing organ-         sulting from the forgiveness of a PPP loan as re-
!       qualify for tax-free treatment if it is can-     ization  that  is  designed  to  encourage  students   ceived or accrued (1) as, and to the extent that, 
CAUTION celed  because  of  services  you  per-
formed  for  the  private  educational  lender  that     to serve in occupations with unmet needs or in         eligible expenses are paid or incurred; (2) when 
made the loan or other organization that provi-          areas with unmet needs where the services re-          you apply for forgiveness of the PPP loan; or (3) 
ded the funds.                                           quired of the students are for or under the direc-     when forgiveness of the PPP loan is granted. If 
                                                         tion of a governmental unit or a tax-exempt sec-       you have tax-exempt income resulting from the 
Loan  from  an  educational  organization  de-           tion 501(c)(3) organization.                           forgiveness of a PPP loan, attach a statement to 
                                                                                                                your  return  reporting  each  tax  year  for  which 
scribed  in  section  170(b)(1)(A)(ii).   This  is                                                              you are applying Rev. Proc. 2021-48, and which 
                                                                                                                section of Rev. Proc. 2021-48 you are applying–

Publication 17 (2023)                                            Chapter 8     Other Income                                                                   69

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either section 3.01(1), (2), or (3). Any statement To determine the excluded part, divide the be expected to result in death within 24 months
should include the following information for amount held by the insurance company (gener- from the date of the certification.
each PPP loan. ally, the total lump sum payable at the death of
1. Your name, address, and ITIN or SSN; the insured person) by the number of install- Exclusion for chronic illness. If the insured is
ments to be paid. Include anything over this ex- a chronically ill individual who’s not terminally ill,
2. A statement that you are applying or ap- cluded part in your income as interest. accelerated death benefits paid on the basis of
costs incurred for qualified long-term care serv-
plied section 3.01(1), (2), or (3) of Rev. Surviving spouse. If your spouse died be- ices are fully excludable. Accelerated death
Proc. 2021-48, and for what tax year; fore October 23, 1986, and insurance proceeds benefits paid on a per diem or other periodic ba-
3. The amount of tax-exempt income from paid to you because of the death of your spouse sis are excludable up to a limit. For 2023, this
forgiveness of the PPP loan that you are are received in installments, you can exclude up limit is $420. It applies to the total of the accel-
treating as received or accrued and for to $1,000 a year of the interest included in the erated death benefits and any periodic pay-
what tax year; and installments. If you remarry, you can continue to ments received from long-term care insurance
4. Whether forgiveness of the PPP loan has take the exclusion. contracts. For information on the limit and the
definitions of chronically ill individual, qualified
been granted as of the date you file your Surrender of policy for cash. If you surren- long-term care services, and long-term care in-
return. der a life insurance policy for cash, you must in- surance contracts, see Long-Term Care Insur-
clude in income any proceeds that are more ance Contracts under Sickness and Injury Ben-
Write “RP 2021-48” at the top of your at- than the cost of the life insurance policy. In most efits in Pub. 525.
tached statement. cases, your cost (or investment in the contract)
is the total of premiums that you paid for the life Exception. The exclusion doesn’t apply to any
Host insurance policy, less any refunded premiums, amount paid to a person (other than the in-
rebates, dividends, or unrepaid loans that sured) who has an insurable interest in the life
If you host a party or event at which sales are weren’t included in your income. of the insured because the insured:
made, any gift or gratuity you receive for giving You should receive a Form 1099-R showing • Is a director, officer, or employee of the
the event is a payment for helping a direct seller the total proceeds and the taxable part. Report person; or
make sales. You must report this item as in- these amounts on lines 5a and 5b of Form 1040
come at its fair market value. or 1040-SR. • Has a financial interest in the person's
business.
Your out-of-pocket party expenses are sub- More information. For more information, see
ject to the 50% limit for meal expenses. For tax Life Insurance Proceeds in Pub. 525. Form 8853. To claim an exclusion for acceler-
years 2018 and after, no deduction is allowed ated death benefits made on a per diem or
for any expenses related to activities generally other periodic basis, you must file Form 8853,
considered entertainment, amusement, or rec- Endowment Contract Archer MSAs and Long-Term Care Insurance
reation. Taxpayers may continue to deduct 50% Proceeds Contracts, with your return. You don’t have to
of the cost of business meals if the taxpayer (or file Form 8853 to exclude accelerated death
an employee of the taxpayer) is present and the An endowment contract is a policy under which benefits paid on the basis of actual expenses
food or beverages are not considered lavish or you’re paid a specified amount of money on a incurred.
extravagant. The meals may be provided to a certain date unless you die before that date, in
current or potential business customer, client, which case the money is paid to your designa-
consultant, or similar business contact. Food ted beneficiary. Endowment proceeds paid in a Public Safety Officer Killed
and beverages that are provided during enter- lump sum to you at maturity are taxable only if or Injured in the Line of
tainment events will not be considered enter- the proceeds are more than the cost of the pol-
tainment if purchased separately from the icy. To determine your cost, subtract any Duty
event. amount that you previously received under the
contract and excluded from your income from A spouse, former spouse, and child of a public
For more information about the limit for meal the total premiums (or other consideration) paid safety officer killed in the line of duty can ex-
expenses, see Pub. 463, Travel, Gift, and Car for the contract. Include in your income the part clude from gross income survivor benefits re-
Expenses. of the lump-sum payment that’s more than your ceived from a governmental section 401(a) plan
cost. attributable to the officer’s service. See section
101(h).
Life Insurance A public safety officer who’s permanently
Proceeds Accelerated Death and totally disabled or killed in the line of duty
and a surviving spouse or child can exclude
Benefits
Life insurance proceeds paid to you because of from income death or disability benefits re-
the death of the insured person aren’t taxable Certain amounts paid as accelerated death ceived from the federal Bureau of Justice Assis-
unless the policy was turned over to you for a benefits under a life insurance contract or viati- tance or death benefits paid by a state program.
price. This is true even if the proceeds were cal settlement before the insured's death are ex- See section 104(a)(6).
paid under an accident or health insurance pol- cluded from income if the insured is terminally For this purpose, the term “public safety offi-
icy or an endowment contract. However, inter- or chronically ill. cer” includes law enforcement officers, firefight-
est income received as a result of life insurance ers, chaplains, and rescue squad and ambu-
proceeds may be taxable. Viatical settlement. This is the sale or assign- lance crew members. For more information, see
ment of any part of the death benefit under a life Pub. 559, Survivors, Executors, and Administra-
Proceeds not received in installments. If insurance contract to a viatical settlement pro- tors.
death benefits are paid to you in a lump sum or vider. A viatical settlement provider is a person
other than at regular intervals, include in your in- who regularly engages in the business of buy-
come only the benefits that are more than the ing or taking assignment of life insurance con- Partnership Income
amount payable to you at the time of the insured tracts on the lives of insured individuals who are
person's death. If the benefit payable at death terminally or chronically ill and who meets the A partnership generally isn’t a taxable entity.
isn’t specified, you include in your income the requirements of section 101(g)(2)(B) of the In- The income, gains, losses, deductions, and
benefit payments that are more than the present ternal Revenue Code. credits of a partnership are passed through to
value of the payments at the time of death. the partners based on each partner's distribu-
Exclusion for terminal illness. Accelerated tive share of these items.
Proceeds received in installments. If you death benefits are fully excludable if the insured
receive life insurance proceeds in installments, is a terminally ill individual. This is a person who Schedule K-1 (Form 1065). Although a part-
you can exclude part of each installment from has been certified by a physician as having an nership generally pays no tax, it must file an in-
your income. illness or physical condition that can reasonably formation return on Form 1065, U.S. Return of
70 Chapter 8 Other Income Publication 17 (2023)

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Partnership Income, and send Schedule K-1 crease to an amount carried over to the current line 1, and the total of all other recoveries as
(Form 1065) to each partner. In addition, the year that resulted from the deduction or credit is other income on Schedule 1 (Form 1040),
partnership will send each partner a copy of the considered to have reduced your tax in the ear- line 8z.
Partner's Instructions for Schedule K-1 (Form lier year. For more information, see Pub. 525.
1065) to help each partner report his or her Standard deduction limit. You are generally
share of the partnership's income, deductions, Federal income tax refund. Refunds of fed- allowed to claim the standard deduction if you
credits, and tax preference items. eral income taxes aren’t included in your in- don’t itemize your deductions. Only your item-
come because they’re never allowed as a de- ized deductions that are more than your stand-
Keep Schedule K-1 (Form 1065) for duction from income. ard deduction are subject to the recovery rule
your records. Don’t attach it to your (unless you’re required to itemize your deduc-
RECORDS Form 1040 or 1040-SR, unless you’re State tax refund. If you received a state or lo- tions). If your total deductions on the earlier
specifically required to do so. cal income tax refund (or credit or offset) in year return weren’t more than your income for
2023, you must generally include it in income if that year, include in your income this year the
For more information on partnerships, see you deducted the tax in an earlier year. The lesser of:
Pub. 541, Partnerships. payer should send Form 1099-G to you by Jan-
uary 31, 2024. The IRS will also receive a copy • Your recoveries, or
Qualified joint venture. If you and your of the Form 1099-G. If you file Form 1040 or • The amount by which your itemized deduc-
spouse each materially participate as the only 1040-SR, use the State and Local Income Tax tions exceeded the standard deduction.
members of a jointly owned and operated busi- Refund Worksheet in the 2023 instructions for
ness, and you file a joint return for the tax year, Schedule 1 (Form 1040) to figure the amount (if Example. For 2022, you filed a joint return.
you can make a joint election to be treated as a any) to include in your income. See Pub. 525 for Your taxable income was $60,000 and you
qualified joint venture instead of a partnership. when you must use another worksheet. weren’t entitled to any tax credits. Your standard
To make this election, you must divide all items If you could choose to deduct for a tax year deduction was $25,900, and you had itemized
of income, gain, loss, deduction, and credit at- either: deductions of $27,400. In 2023, you received
tributable to the business between you and your the following recoveries for amounts deducted
spouse in accordance with your respective in- • State and local income taxes, or
on your 2022 return.
terests in the venture. For further information on • State and local general sales taxes, then
how to make the election and which sched- the maximum refund that you may have to in- Medical expenses. . . . . . . . . . . . . . . $200
ule(s) to file, see the instructions for your indi- clude in income is limited to the excess of the State and local income tax refund. . . . . . . 400
vidual tax return. tax you chose to deduct for that year over the Refund of mortgage interest. . . . . . . . . . 325
tax you didn’t choose to deduct for that year. Total recoveries. . . . . . . . . . . . . . . . $925
S Corporation Income For examples, see Pub. 525.
In most cases, an S corporation doesn’t pay tax Mortgage interest refund. If you received a None of the recoveries were more than the de-
on its income. Instead, the income, losses, de- refund or credit in 2023 of mortgage interest ductions taken for 2022. The difference be-
ductions, and credits of the corporation are paid in an earlier year, the amount should be tween the state and local income tax you de-
passed through to the shareholders based on shown in Form 1098, box 4, Mortgage Interest ducted and your local general sales tax was
each shareholder's pro rata share. Statement. Don’t subtract the refund amount more than $400.
from the interest you paid in 2023. You may Your total recoveries are less than the
Schedule K-1 (Form 1120-S). An S corpora- have to include it in your income under the rules amount by which your itemized deductions ex-
tion must file a return on Form 1120-S, U.S. In- explained in the following discussions. ceeded the standard deduction ($27,400 −
$25,900 = $1,500), so you must include your to-
come Tax Return for an S Corporation, and Interest on recovery. Interest on any of the tal recoveries in your income for 2023. Report
send Schedule K-1 (Form 1120-S) to each amounts you recover must be reported as inter- the state and local income tax refund of $400
shareholder. In addition, the S corporation will est income in the year received. For example, on Schedule 1 (Form 1040), line 1, and the bal-
send each shareholder a copy of the Share- report any interest you received on state or local ance of your recoveries, $525, on Schedule 1
holder's Instructions for Schedule K-1 (Form income tax refunds on Form 1040, 1040-SR, or (Form 1040), line 8z.
1120-S) to help each shareholder report her or 1040-NR, line 2b.
his share of the S corporation's income, losses, Standard deduction for earlier years. To
credits, and deductions. Recovery and expense in same year. If the determine if amounts recovered in the current
Keep Schedule K-1 (Form 1120-S) for refund or other recovery and the expense occur year must be included in your income, you must
your records. Don’t attach it to your in the same year, the recovery reduces the de- know the standard deduction for your filing sta-
RECORDS Form 1040 or 1040-SR, unless you’re duction or credit and isn’t reported as income. tus for the year the deduction was claimed.
specifically required to do so. Recovery for 2 or more years. If you receive Look in the instructions for your tax return from
a refund or other recovery that’s for amounts prior years to locate the standard deduction for
For more information on S corporations and you paid in 2 or more separate years, you must the filing status for that prior year. If you filed
their shareholders, see the Instructions for Form allocate, on a pro rata basis, the recovered Form 1040-NR, you couldn’t claim the standard
1120-S. amount between the years in which you paid it. deduction except for certain nonresident aliens
This allocation is necessary to determine the from India (see Pub. 519).
amount of recovery from any earlier years and
Recoveries to determine the amount, if any, of your allowa- Example. You filed a joint return on Form
A recovery is a return of an amount you deduc- ble deduction for this item for the current year. 1040 for 2022 with taxable income of $45,000.
ted or took a credit for in an earlier year. The For information on how to figure the allocation, Your itemized deductions were $26,150. The
most common recoveries are refunds, reim- see Recoveries in Pub. 525. standard deduction that you could have claimed
bursements, and rebates of deductions item- was $25,900. In 2023, you recovered $2,100 of
your 2022 itemized deductions. None of the re-
ized on Schedule A (Form 1040). You may also Itemized Deduction coveries were more than the actual deductions
have recoveries of nonitemized deductions for 2022. Include $250 of the recoveries in your
(such as payments on previously deducted bad Recoveries
debts) and recoveries of items for which you 2023 income. This is the smaller of your recov-
previously claimed a tax credit. If you recover any amount that you deducted in eries ($2,100) or the amount by which your
an earlier year on Schedule A (Form 1040), you itemized deductions were more than the stand-
Tax benefit rule. You must include a recovery must generally include the full amount of the re- ard deduction ($26,150 − $25,900 = $250).
in your income in the year you receive it up to covery in your income in the year you receive it. Recovery limited to deduction. You don’t in-
the amount by which the deduction or credit you clude in your income any amount of your recov-
took for the recovered amount reduced your tax Where to report. Enter your state or local in-
in the earlier year. For this purpose, any in- come tax refund on Schedule 1 (Form 1040), ery that’s more than the amount you deducted

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in the earlier year. The amount you include in repayment qualifies as an expense or loss in- amount of the credit to any other credits on this
your income is limited to the smaller of: curred in your trade or business or in a for-profit line, and see the instructions there.
• The amount deducted on Schedule A transaction. An example of this computation can be
found in Pub. 525.
(Form 1040), or Type of deduction. The type of deduction
• The amount recovered. you’re allowed in the year of repayment de- Repaid wages subject to social security
pends on the type of income you included in the and Medicare taxes. If you had to repay an
Example. During 2022, you paid $1,700 for earlier year. You generally deduct the repay- amount that you included in your wages or com-
medical expenses. Of this amount, you deduc- ment on the same form or schedule on which pensation in an earlier year on which social se-
ted $200 on your 2022 Schedule A (Form you previously reported it as income. For exam- curity, Medicare, or tier 1 RRTA taxes were paid,
1040). In 2023, you received a $500 reimburse- ple, if you reported it as self-employment in- ask your employer to refund the excess amount
ment from your medical insurance for your 2022 come, deduct it as a business expense on to you. If the employer refuses to refund the
expenses. The only amount of the $500 reim- Schedule C (Form 1040) or Schedule F (Form taxes, ask for a statement indicating the amount
bursement that must be included in your income 1040). If you reported it as a capital gain, de- of the overcollection to support your claim. File
for 2023 is $200—the amount actually deduc- duct it as a capital loss as explained in the In- a claim for refund using Form 843, Claim for Re-
ted. structions for Schedule D (Form 1040). If you fund and Request for Abatement.
reported it as wages, unemployment compen-
Other recoveries. See Recoveries in Pub. sation, or other nonbusiness income, you may Repaid wages subject to Additional Medi-
525 if: be able to deduct it as an other itemized deduc- care Tax. Employers can’t make an adjust-
• You have recoveries of items other than tion if the amount repaid is over $3,000. ment or file a claim for refund for Additional
Medicare Tax withholding when there is a re-
itemized deductions, or Beginning in 2018, you can no longer payment of wages received by an employee in a
• You received a recovery for an item for ! claim any miscellaneous itemized de- prior year because the employee determines li-
which you claimed a tax credit (other than CAUTION ductions, so if the amount repaid was ability for Additional Medicare Tax on the em-
investment credit or foreign tax credit) in a $3,000 or less, you are not able to deduct it ployee's income tax return for the prior year. If
prior year. from your income in the year you repaid it. you had to repay an amount that you included in
your wages or compensation in an earlier year,
Repaid social security benefits. If you repaid and on which Additional Medicare Tax was
Rents From Personal social security benefits or equivalent railroad re- paid, you may be able to recover the Additional
tirement benefits, see Repayment of benefits. in Medicare Tax paid on the amount. To recover
Property chapter 7. Additional Medicare Tax on the repaid wages or
If you rent out personal property, such as equip- Repayment over $3,000. If the amount you compensation, you must file Form 1040-X for
ment or vehicles, how you report your income repaid was more than $3,000, you can deduct the prior year in which the wages or compensa-
and expenses is in most cases determined by: the repayment as an other itemized deduction tion was originally received. See the Instruc-
• Whether or not the rental activity is a busi- on Schedule A (Form 1040), line 16, if you in- tions for Form 1040-X.
ness, and cluded the income under a claim of right. This
means that at the time you included the income, Royalties
• Whether or not the rental activity is con- it appeared that you had an unrestricted right to
ducted for profit. it. However, you can choose to take a credit for Royalties from copyrights, patents, and oil, gas,
In most cases, if your primary purpose is in- the year of repayment. Figure your tax under and mineral properties are taxable as ordinary
come or profit and you’re involved in the rental both methods and compare the results. Use the income.
activity with continuity and regularity, your rental method (deduction or credit) that results in less
activity is a business. tax. In most cases, you report royalties in Part I
of Schedule E (Form 1040). However, if you
Reporting business income and expenses. When determining whether the amount hold an operating oil, gas, or mineral interest or
If you’re in the business of renting personal ! you repaid was more or less than are in business as a self-employed writer, inven-
property, report your income and expenses on CAUTION $3,000, consider the total amount be-
tor, artist, etc., report your income and expen-
Schedule C (Form 1040). The form instructions ing repaid on the return. Each instance of re- ses on Schedule C (Form 1040).
have information on how to complete them. payment isn’t considered separately.
Copyrights and patents. Royalties from copy-
Reporting nonbusiness income. If you rights on literary, musical, or artistic works, and
aren’t in the business of renting personal prop- Method 1. Figure your tax for 2023 claiming
erty, report your rental income on Schedule 1 a deduction for the repaid amount. If you deduct similar property, or from patents on inventions,
(Form 1040), line 8l. it as an other itemized deduction, enter it on are amounts paid to you for the right to use your
Schedule A (Form 1040), line 16. work over a specified period of time. Royalties
Reporting nonbusiness expenses. If you are generally based on the number of units
rent personal property for profit, include your Method 2. Figure your tax for 2023 claiming sold, such as the number of books, tickets to a
rental expenses in the total amount you enter on a credit for the repaid amount. Follow these performance, or machines sold.
Schedule 1 (Form 1040), line 24b, and see the steps.
Oil, gas, and minerals. Royalty income from
instructions there. 1. Figure your tax for 2023 without deducting oil, gas, and mineral properties is the amount
If you don’t rent personal property for profit, the repaid amount. you receive when natural resources are extrac-
your deductions are limited and you can’t report ted from your property. The royalties are based
a loss to offset other income. See Activity not 2. Refigure your tax from the earlier year
for profit under Other Income, later. without including in income the amount on units, such as barrels, tons, etc., and are
you repaid in 2023. paid to you by a person or company that leases
the property from you.
3. Subtract the tax in (2) from the tax shown
Repayments on your return for the earlier year. This is Depletion. If you’re the owner of an eco-
If you had to repay an amount that you included the credit. nomic interest in mineral deposits or oil and gas
in your income in an earlier year, you may be 4. Subtract the answer in (3) from the tax for wells, you can recover your investment through
able to deduct the amount repaid from your in- 2023 figured without the deduction (step the depletion allowance.
come for the year in which you repaid it. Or, if 1).
the amount you repaid is more than $3,000, you Coal and iron ore. Under certain circum-
may be able to take a credit against your tax for If method 1 results in less tax, deduct the stances, you can treat amounts you receive
the year in which you repaid it. Generally, you amount repaid. If method 2 results in less tax, from the disposal of coal and iron ore as pay-
can claim a deduction or credit only if the claim the credit figured in (3) above on Sched- ments from the sale of a capital asset, rather
ule 3 (Form 1040), line 13b, by adding the than as royalty income. For information about
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gain or loss from the sale of coal and iron ore, • Trade readjustment allowances under the credit against your tax for the later year instead
see chapter 2 of Pub. 544. Trade Act of 1974. of deducting the amount repaid. For more infor-
Sale of property interest. If you sell your • Unemployment assistance under the Dis- mation on this, see Repayments, earlier.
complete interest in oil, gas, or mineral rights, aster Relief and Emergency Assistance Private unemployment fund. Unemployment
the amount you receive is considered payment Act. benefit payments from a private (nonunion) fund
for the sale of property used in a trade or busi- • Unemployment assistance under the Air- to which you voluntarily contribute are taxable
ness under section 1231, not royalty income. line Deregulation Act of 1978 Program. only if the amounts you receive are more than
Under certain circumstances, the sale is subject your total payments into the fund. Report the
to capital gain or loss treatment as explained in taxable amount on Schedule 1 (Form 1040),
the Instructions for Schedule D (Form 1040). Governmental program. If you contribute line 8z.
For more information on selling section 1231 to a governmental unemployment compensa- Payments by a union. Benefits paid to you as
property, see chapter 3 of Pub. 544. tion program and your contributions aren’t de- an unemployed member of a union from regular
If you retain a royalty, an overriding royalty, ductible, amounts you receive under the pro- union dues are included in your income on
or a net profit interest in a mineral property for gram aren’t included as unemployment Schedule 1 (Form 1040), line 8z. However, if
the life of the property, you have made a lease compensation until you recover your contribu- you contribute to a special union fund and your
or a sublease, and any cash you receive for the tions. If you deducted all of your contributions to payments to the fund aren’t deductible, the un-
assignment of other interests in the property is the program, the entire amount you receive un- employment benefits you receive from the fund
ordinary income subject to a depletion allow- der the program is included in your income. are includible in your income only to the extent
ance. they’re more than your contributions.
Repayment of unemployment compensa-
Part of future production sold. If you own tion. If you repaid in 2023 unemployment com- Guaranteed annual wage. Payments you re-
mineral property but sell part of the future pro- pensation you received in 2023, subtract the ceive from your employer during periods of un-
duction, in most cases you treat the money you amount you repaid from the total amount you re- employment, under a union agreement that
receive from the buyer at the time of the sale as ceived and enter the difference on Schedule 1 guarantees you full pay during the year, are tax-
a loan from the buyer. Don’t include it in your in- (Form 1040), line 7. On the dotted line next to able as wages. Include them on line 1a of Form
come or take depletion based on it. your entry, enter “Repaid” and the amount you 1040 or 1040-SR.
When production begins, you include all the repaid. If you repaid unemployment compensa- State employees. Payments similar to a
proceeds in your income, deduct all the produc- tion in 2023 that you included in income in an state's unemployment compensation may be
tion expenses, and deduct depletion from that earlier year, you can deduct the amount repaid made by the state to its employees who aren’t
amount to arrive at your taxable income from on Schedule A (Form 1040), line 16, if you item- covered by the state's unemployment compen-
the property. ize deductions and the amount is more than sation law. Although the payments are fully tax-
$3,000. See Repayments, earlier. able, don’t report them as unemployment com-
Unemployment Tax withholding. You can choose to have pensation. Report these payments on Schedule
federal income tax withheld from your unem- 1 (Form 1040), line 8z.
Benefits ployment compensation. To make this choice,
The tax treatment of unemployment benefits complete Form W-4V, Voluntary Withholding
you receive depends on the type of program Request, and give it to the paying office. Tax will Welfare and Other
paying the benefits. be withheld at 10% of your payment. Public Assistance
Unemployment compensation. You must in- If you don’t choose to have tax withheld Benefits
clude in income all unemployment compensa- ! from your unemployment compensa-
tion you receive. You should receive a Form CAUTION tion, you may be liable for estimated Don’t include in your income governmental ben-
1099-G showing in box 1 the total unemploy- tax. If you don’t pay enough tax, either through efit payments from a public welfare fund based
ment compensation paid to you. In most cases, withholding or estimated tax, or a combination upon need, such as payments to blind individu-
you enter unemployment compensation on of both, you may have to pay a penalty. For als under a state public assistance law. Pay-
Schedule 1 (Form 1040), line 7. more information on estimated tax, see chap- ments from a state fund for the victims of crime
ter 4. shouldn’t be included in the victims' incomes if
If you received unemployment com- they’re in the nature of welfare payments. Don’t
! pensation but did not receive Form Supplemental unemployment benefits. deduct medical expenses that are reimbursed
CAUTION 1099-G through the mail, you may Benefits received from an employer-financed by such a fund. You must include in your income
need to access your information through your fund (to which the employees didn’t contribute) any welfare payments that are compensation for
state’s website to get your electronic Form aren’t unemployment compensation. They are services or that are obtained fraudulently.
1099-G. taxable as wages. For more information, see
Supplemental Unemployment Benefits in sec- Reemployment Trade Adjustment Assis-
Types of unemployment compensation. tion 5 of Pub. 15-A, Employer's Supplemental tance (RTAA) payments. RTAA payments re-
Unemployment compensation generally in- Tax Guide. Report these payments on line 1a of ceived from a state must be included in your in-
cludes any amount received under an unem- Form 1040 or 1040-SR. come. The state must send you Form 1099-G to
ployment compensation law of the United advise you of the amount you should include in
States or of a state. It includes the following Repayment of benefits. You may have to income. The amount should be reported on
benefits. repay some of your supplemental unemploy- Schedule 1 (Form 1040), line 8z.
ment benefits to qualify for trade readjustment
• Benefits paid by a state or the District of allowances under the Trade Act of 1974. If you Persons with disabilities. If you have a disa-
Columbia from the Federal Unemployment repay supplemental unemployment benefits in bility, you must include in income compensation
Trust Fund. the same year you receive them, reduce the to- you receive for services you perform unless the
• State unemployment insurance benefits. tal benefits by the amount you repay. If you re- compensation is otherwise excluded. However,
pay the benefits in a later year, you must include you don’t include in income the value of goods,
• Railroad unemployment compensation the full amount of the benefits received in your services, and cash that you receive, not in re-
benefits. income for the year you received them. turn for your services, but for your training and
• Disability payments from a government Deduct the repayment in the later year as an rehabilitation because you have a disability. Ex-
program paid as a substitute for unemploy- adjustment to gross income on Form 1040 or cludable amounts include payments for trans-
ment compensation. (Amounts received as 1040-SR. Include the repayment on Schedule 1 portation and attendant care, such as inter-
workers' compensation for injuries or ill- (Form 1040), line 24e, and see the instructions preter services for the deaf, reader services for
ness aren’t unemployment compensation. there. If the amount you repay in a later year is the blind, and services to help individuals with
See chapter 5 for more information.) more than $3,000, you may be able to take a an intellectual disability do their work.

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Disaster relief grants. Don’t include post-dis- disasters. They’re paid to you through state and you don’t expect to make a profit. An example of
aster grants received under the Robert T. Staf- local governments based on the provisions of this type of activity is a hobby or a farm you op-
ford Disaster Relief and Emergency Assistance the Robert T. Stafford Disaster Relief and Emer- erate mostly for recreation and pleasure. Enter
Act in your income if the grant payments are gency Assistance Act or the National Flood In- this income on Schedule 1 (Form 1040), line 8j.
made to help you meet necessary expenses or surance Act. Deductions for expenses related to the activity
serious needs for medical, dental, housing, per- You can’t increase the basis or adjusted ba- are limited. They can’t total more than the in-
sonal property, transportation, childcare, or fu- sis of your property for improvements made with come you report and can be taken only if you
neral expenses. Don’t deduct casualty losses or nontaxable disaster mitigation payments. itemize deductions on Schedule A (Form 1040).
medical expenses that are specifically reim-
bursed by these disaster relief grants. If you Home Affordable Modification Program Alaska Permanent Fund dividend. If you re-
have deducted a casualty loss for the loss of (HAMP). If you benefit from Pay-for-Perform- ceived a payment from Alaska's mineral income
your personal residence and you later receive a ance Success Payments under HAMP, the pay- fund (Alaska Permanent Fund dividend), report
disaster relief grant for the loss of the same resi- ments aren’t taxable. it as income on Schedule 1 (Form 1040),
line 8g. The state of Alaska sends each recipi-
dence, you may have to include part or all of the Mortgage assistance payments under sec- ent a document that shows the amount of the
grant in your taxable income. See Recoveries, tion 235 of the National Housing Act. Pay- payment with the check. The amount is also re-
earlier. Unemployment assistance payments ments made under section 235 of the National ported to the IRS.
under the Act are taxable unemployment com- Housing Act for mortgage assistance aren’t in-
pensation. See Unemployment compensation cluded in the homeowner's income. Interest Alimony. Include in your income on Schedule
under Unemployment Benefits, earlier. paid for the homeowner under the mortgage as- 1 (Form 1040), line 2a, any taxable alimony pay-
Disaster relief payments. You can exclude sistance program can’t be deducted. ments you receive. Amounts you receive for
child support aren’t income to you. Alimony and
from income any amount you receive that’s a Medicare. Medicare benefits received under ti- child support payments are discussed in Pub.
qualified disaster relief payment. A qualified dis- tle XVIII of the Social Security Act aren’t includi- 504.
aster relief payment is an amount paid to you: ble in the gross income of the individuals for
1. To reimburse or pay reasonable and nec- whom they’re paid. This includes basic (Part A Don’t include alimony payments you re-
essary personal, family, living, or funeral (Hospital Insurance Benefits for the Aged)) and ! ceive under a divorce or separation
expenses that result from a qualified dis- supplementary (Part B (Supplementary Medical CAUTION agreement (1) executed after 2018, or
aster; Insurance Benefits for the Aged)). (2) executed before 2019 but later modified if
the modification expressly states the repeal of
2. To reimburse or pay reasonable and nec- Social security benefits (including the deduction for alimony payments applies to
essary expenses incurred for the repair or lump-sum payments attributable to prior the modification.
rehabilitation of your home or repair or re- years), Supplemental Security Income (SSI)
placement of its contents to the extent it’s benefits, and lump-sum death benefits. The Bribes. If you receive a bribe, include it in your
due to a qualified disaster; Social Security Administration (SSA) provides income.
benefits such as old-age benefits, benefits to
3. By a person engaged in the furnishing or disabled workers, and benefits to spouses and Campaign contributions. These contributions
sale of transportation as a common carrier dependents. These benefits may be subject to aren’t income to a candidate unless they’re di-
because of the death or personal physical federal income tax depending on your filing sta- verted to her or his personal use. To be nontax-
injuries incurred as a result of a qualified tus and other income. See chapter 7 in this pub- able, the contributions must be spent for cam-
disaster; or lication and Pub. 915, Social Security and paign purposes or kept in a fund for use in
4. By a federal, state, or local government; Equivalent Railroad Retirement Benefits, for future campaigns. However, interest earned on
agency; or instrumentality in connection more information. An individual originally denied bank deposits, dividends received on contrib-
with a qualified disaster in order to pro- benefits, but later approved, may receive a uted securities, and net gains realized on sales
mote the general welfare. lump-sum payment for the period when benefits of contributed securities are taxable and must
were denied (which may be prior years). See be reported on Form 1120-POL, U.S. Income
You can exclude this amount only to the extent Pub. 915 for information on how to make a Tax Return for Certain Political Organizations.
any expense it pays for isn’t paid for by insur- lump-sum election, which may reduce your tax Excess campaign funds transferred to an office
ance or otherwise. The exclusion doesn’t apply liability. There are also other types of benefits account must be included in the officeholder's
if you were a participant or conspirator in a ter- paid by the SSA. However, SSI benefits and income on Schedule 1 (Form 1040), line 8z, in
rorist action or a representative of one. lump-sum death benefits (one-time payment to the year transferred.
A qualified disaster is: spouse and children of deceased) aren’t sub- Carpools. Don’t include in your income
• A disaster which results from a terrorist or ject to federal income tax. For more information amounts you receive from the passengers for
military action; on these benefits, go to SSA.gov. driving a car in a carpool to and from work.
• A federally declared disaster; or Nutrition Program for the Elderly. Food ben- These amounts are considered reimbursement
efits you receive under the Nutrition Program for for your expenses. However, this rule doesn’t
• A disaster which results from an accident the Elderly aren’t taxable. If you prepare and apply if you have developed carpool arrange-
involving a common carrier, or from any serve free meals for the program, include in ments into a profit-making business of trans-
other event, which is determined to be your income as wages the cash pay you re- porting workers for hire.
catastrophic by the Secretary of the Treas- ceive, even if you’re also eligible for food bene- Cash rebates. A cash rebate you receive from
ury or his or her delegate. fits. a dealer or manufacturer of an item you buy
For amounts paid under item (4) above, a Payments to reduce cost of winter energy. isn’t income, but you must reduce your basis by
disaster is qualified if it’s determined by an ap- Payments made by a state to qualified people to the amount of the rebate.
plicable federal, state, or local authority to war- reduce their cost of winter energy use aren’t
rant assistance from the federal, state, or local taxable. Example. You buy a new car for $24,000
government, agency, or instrumentality. cash and receive a $2,000 rebate check from
Disaster mitigation payments. You can ex- the manufacturer. The $2,000 isn’t income to
clude from income any amount you receive Other Income you. Your basis in the car is $22,000. This is the
basis on which you figure gain or loss if you sell
that’s a qualified disaster mitigation payment. The following brief discussions are arranged in the car and depreciation if you use it for busi-
Qualified disaster mitigation payments are most alphabetical order. Other income items briefly ness.
commonly paid to you in the period immediately discussed below are referenced to publications
following damage to property as a result of a which provide more topical information. Casualty insurance and other reimburse-
natural disaster. However, disaster mitigation ments. You generally shouldn’t report these re-
payments are used to mitigate (reduce the se- Activity not for profit. You must include on imbursements on your return unless you’re
verity of) potential damage from future natural your return income from an activity from which
74 Chapter 8 Other Income Publication 17 (2023)

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figuring gain or loss from the casualty or theft. Down payment assistance. If you purchase a the estate or trust income and any credits you’re
See Pub. 547 for more information. home and receive assistance from a nonprofit allowed on your individual income tax return.
corporation to make the down payment, that as-
Child support payments. You shouldn’t re- sistance isn’t included in your income. If the cor- Losses. Losses of estates and trusts gener-
port these payments on your return. See Pub. poration qualifies as a tax-exempt charitable or- ally aren’t deductible by the beneficiaries.
504 for more information. ganization, the assistance is treated as a gift Grantor trust. Income earned by a grantor
Court awards and damages. To determine if and is included in your basis of the house. If the trust is taxable to the grantor, not the benefi-
settlement amounts you receive by compromise corporation doesn’t qualify, the assistance is ciary, if the grantor keeps certain control over
or judgment must be included in your income, treated as a rebate or reduction of the purchase the trust. (The grantor is the one who transfer-
you must consider the item that the settlement price and isn’t included in your basis. red property to the trust.) This rule applies if the
replaces. The character of the income as ordi- Employment agency fees. If you get a job property (or income from the property) put into
nary income or capital gain depends on the na- through an employment agency, and the fee is the trust will or may revert (be returned) to the
ture of the underlying claim. Include the follow- paid by your employer, the fee isn’t includible in grantor or the grantor's spouse.
ing as ordinary income. your income if you aren’t liable for it. However, if Generally, a trust is a grantor trust if the
1. Interest on any award. you pay it and your employer reimburses you for grantor has a reversionary interest valued (at
it, it’s includible in your income. the date of transfer) at more than 5% of the
2. Compensation for lost wages or lost profits value of the transferred property.
in most cases. Energy conservation subsidies. You can ex-
3. Punitive damages, in most cases. It clude from gross income any subsidy provided, Expenses paid by another. If your personal
doesn’t matter if they relate to a physical either directly or indirectly, by public utilities for expenses are paid for by another person, such
injury or physical sickness. the purchase or installation of an energy con- as a corporation, the payment may be taxable
servation measure for a dwelling unit. to you depending upon your relationship with
4. Amounts received in settlement of pension that person and the nature of the payment. But
rights (if you didn’t contribute to the plan). Energy conservation measure. This in- if the payment makes up for a loss caused by
cludes installations or modifications that are pri- that person, and only restores you to the posi-
5. Damages for: marily designed to reduce consumption of elec- tion you were in before the loss, the payment
a. Patent or copyright infringement, tricity or natural gas, or improve the isn’t includible in your income.
management of energy demand.
b. Breach of contract, or Fees for services. Include all fees for your
Dwelling unit. This includes a house, services in your income. Examples of these
c. Interference with business operations. apartment, condominium, mobile home, boat, fees are amounts you receive for services you
6. Back pay and damages for emotional dis- or similar property. If a building or structure con- perform as:
tress received to satisfy a claim under title tains both dwelling and other units, any subsidy • A corporate director;
VII of the Civil Rights Act of 1964. must be properly allocated.
• An executor, administrator, or personal
7. Attorney fees and costs (including contin- Estate and trust income. An estate or trust, representative of an estate;
gent fees) where the underlying recovery unlike a partnership, may have to pay federal in-
is included in gross income. come tax. If you’re a beneficiary of an estate or • A manager of a trade or business you op-
trust, you may be taxed on your share of its in- erated before declaring chapter 11 bank-
8. Attorney fees and costs relating to whistle- come distributed or required to be distributed to ruptcy;
blower awards where the underlying re- you. However, there is never a double tax. Es- • A notary public; or
covery is included in gross income. tates and trusts file their returns on Form 1041,
Don’t include in your income compensatory U.S. Income Tax Return for Estates and Trusts, • An election precinct official.
damages for personal physical injury or physical and your share of the income is reported to you Nonemployee compensation. If you aren’t
sickness (whether received in a lump sum or in- on Schedule K-1 (Form 1041). an employee and the fees for your services from
stallments). Current income required to be distrib- a single payer in the course of the payer's trade
Emotional distress. Emotional distress it- uted. If you’re the beneficiary of an estate or or business total $600 or more for the year, the
self isn’t a physical injury or physical sickness, trust that must distribute all of its current in- payer should send you a Form 1099-NEC. You
but damages you receive for emotional distress come, you must report your share of the distrib- may need to report your fees as self-employ-
due to a physical injury or sickness are treated utable net income, whether or not you actually ment income. See Self-Employed Persons in
as received for the physical injury or sickness. received it. chapter 1 for a discussion of when you’re con-
Don’t include them in your income. sidered self-employed.
If the emotional distress is due to a personal Current income not required to be dis-
injury that isn’t due to a physical injury or sick- tributed. If you’re the beneficiary of an estate Corporate director. Corporate director fees
ness (for example, employment discrimination or trust and the fiduciary has the choice of are self-employment income. Report these pay-
or injury to reputation), you must include the whether to distribute all or part of the current in- ments on Schedule C (Form 1040).
damages in your income, except for any dam- come, you must report: Personal representatives. All personal
ages that aren’t more than amounts paid for • All income that’s required to be distributed representatives must include in their gross in-
medical care due to that emotional distress. to you, whether or not it’s actually distrib- come fees paid to them from an estate. If you
Emotional distress includes physical symptoms uted, plus aren’t in the trade or business of being an exec-
utor (for instance, you’re the executor of a
headaches, insomnia, and stomach disorders. •
that result from emotional distress, such as All other amounts actually paid or credited friend's or relative's estate), report these fees on
to you, Schedule 1 (Form 1040), line 8z. If you’re in the
Credit card insurance. In most cases, if you up to the amount of your share of distributable trade or business of being an executor, report
receive benefits under a credit card disability or net income. these fees as self-employment income on
unemployment insurance plan, the benefits are Schedule C (Form 1040). The fee isn’t includi-
taxable to you. These plans make the minimum How to report. Treat each item of income ble in income if it’s waived.
monthly payment on your credit card account if the same way that the estate or trust would treat
you can’t make the payment due to injury, ill- it. For example, if a trust's dividend income is Manager of trade or business for bank-
ness, disability, or unemployment. Report on distributed to you, you report the distribution as ruptcy estate. Include in your income all pay-
Schedule 1 (Form 1040), line 8z, the amount of dividend income on your return. The same rule ments received from your bankruptcy estate for
benefits you received during the year that’s applies to distributions of tax-exempt interest managing or operating a trade or business that
more than the amount of the premiums you paid and capital gains. you operated before you filed for bankruptcy.
during the year. The fiduciary of the estate or trust must tell Report this income on Schedule 1 (Form 1040),
you the type of items making up your share of line 8z.
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Notary public. Report payments for these at its fair market value in the first year it’s your If you collect stamps, coins, or other
services on Schedule C (Form 1040). These undisputed possession. ! items as a hobby for recreation and
payments aren’t subject to self-employment tax. CAUTION pleasure, and you sell any of the items,
See the separate Instructions for Schedule SE Free tour. If you received a free tour from a your gain is taxable as a capital gain. (See Pub.
(Form 1040) for details. travel agency for organizing a group of tourists, 550.) However, if you sell items from your col-
you must include its value in your income. Re- lection at a loss, you can’t deduct the loss.
Election precinct official. You should re- port the fair market value of the tour on Sched-
ceive a Form W-2 showing payments for serv- ule 1 (Form 1040), line 8z, if you aren’t in the Illegal activities. Income from illegal activities,
ices performed as an election official or election trade or business of organizing tours. You can’t such as money from dealing illegal drugs, must
worker. Report these payments on line 1a of deduct your expenses in serving as the volun- be included in your income on Schedule 1
Form 1040 or 1040-SR. tary leader of the group at the group's request. If (Form 1040), line 8z, or on Schedule C (Form
you organize tours as a trade or business, re- 1040) if from your self-employment activity.
Foster care providers. Generally, payment port the tour's value on Schedule C (Form
you receive from a state, a political subdivision, 1040). Indian fishing rights. If you’re a member of a
or a qualified foster care placement agency for qualified Indian tribe that has fishing rights se-
caring for a qualified foster individual in your Gambling winnings. You must include your cured by treaty, Executive order, or an Act of
home is excluded from your income. However, gambling winnings in income on Schedule 1 Congress as of March 17, 1988, don’t include in
you must include in your income payment to the (Form 1040), line 8b. Winnings from fantasy your income amounts you receive from activities
extent it’s received for the care of more than five sports leagues are gambling winnings. If you related to those fishing rights. The income isn’t
qualified foster individuals age 19 years or itemize your deductions on Schedule A (Form subject to income tax, self-employment tax, or
older. 1040), you can deduct gambling losses you had employment taxes.
A qualified foster individual is a person who: during the year, but only up to the amount of
your winnings. If you’re in the trade or business Interest on frozen deposits. In general, you
1. Is living in a foster family home; and of gambling, use Schedule C (Form 1040). exclude from your income the amount of inter-
est earned on a frozen deposit. See Interest in-
2. Was placed there by: Lotteries and raffles. Winnings from lotter- come on frozen deposits in chapter 6.
a. An agency of a state or one of its polit- ies and raffles are gambling winnings. In addi- Interest on qualified savings bonds. You
ical subdivisions, or tion to cash winnings, you must include in your may be able to exclude from income the interest
b. A qualified foster care placement income the fair market value of bonds, cars, from qualified U.S. savings bonds you redeem if
agency. houses, and other noncash prizes. you pay qualified higher education expenses in
If you win a state lottery prize payable the same year. For more information on this ex-
Difficulty-of-care payments. These are TIP in installments, see Pub. 525 for more clusion, see Education Savings Bond Program
payments that are designated by the payer as information. under U.S. Savings Bonds in chapter 6.
compensation for providing the additional care
that’s required for physically, mentally, or emo- Job interview expenses. If a prospective em-
tionally handicapped qualified foster individuals. Form W-2G. You may have received a Form ployer asks you to appear for an interview and
A state must determine that this compensation W-2G, Certain Gambling Winnings, showing the either pays you an allowance or reimburses you
is needed, and the care for which the payments amount of your gambling winnings and any tax for your transportation and other travel expen-
are made must be provided in the foster care taken out of them. Include the amount from ses, the amount you receive is generally not
provider's home in which the qualified foster in- box 1 on Schedule 1 (Form 1040), line 8b. In- taxable. You include in income only the amount
dividual was placed. clude the amount shown in box 4 on Form 1040 you receive that’s more than your actual expen-
Certain Medicaid waiver payments are trea- or 1040-SR, line 25c, as federal income tax ses.
ted as difficulty-of-care payments when re- withheld.
Jury duty. Jury duty pay you receive must be
ceived by an individual care provider for caring included in your income on Schedule 1 (Form
for an eligible individual living in the provider's Reporting winnings and recordkeeping.
home. See Notice 2014-7, available at For more information on reporting gambling 1040), line 8h. If you gave any of your jury duty
IRS.gov/irb/2014-04_IRB#NOT-2014-7, and re- winnings and recordkeeping, see Gambling pay to your employer because your employer
lated questions and answers, available at Losses up to the Amount of Gambling Winnings continued to pay you while you served jury duty,
IRS.gov/Individuals/Certain-Medicaid-Waiver- in chapter 12. include the amount you gave your employer as
an income adjustment on Schedule 1 (Form
Payments-May-Be-Excludable-From-Income, Gifts and inheritances. In most cases, prop- 1040), line 24a, and see the instructions there.
for more information. erty you receive as a gift, bequest, or inheri-
You must include in your income diffi- tance isn’t included in your income. However, if Kickbacks. You must include kickbacks, side
culty-of-care payments to the extent they’re re- property you receive this way later produces in- commissions, push money, or similar payments
ceived for more than: come such as interest, dividends, or rents, that you receive in your income on Schedule 1
• 10 qualified foster individuals under age income is taxable to you. If property is given to a (Form 1040), line 8z, or on Schedule C (Form
19, or trust and the income from it is paid, credited, or 1040) if from your self-employment activity.
• 5 qualified foster individuals age 19 or distributed to you, that income is also taxable to
older. you. If the gift, bequest, or inheritance is the in- Example. You sell cars and help arrange
come from the property, that income is taxable car insurance for buyers. Insurance brokers pay
Maintaining space in home. If you’re paid to you. back part of their commissions to you for refer-
ring customers to them. You must include the
to maintain space in your home for emergency kickbacks in your income.
foster care, you must include the payment in Inherited pension or individual retire-
your income. ment arrangement (IRA). If you inherited a Medical savings accounts (Archer MSAs
pension or an IRA, you may have to include part and Medicare Advantage MSAs). In most ca-
Reporting taxable payments. If you re- of the inherited amount in your income. See ses, you don’t include in income amounts you
ceive payments that you must include in your in- Survivors and Beneficiaries in Pub. 575 if you withdraw from your Archer MSA or Medicare
come and you’re in business as a foster care inherited a pension. See What if You Inherit an Advantage MSA if you use the money to pay for
provider, report the payments on Schedule C IRA? in Pubs. 590-A and 590-B if you inherited qualified medical expenses. Generally, qualified
(Form 1040). See Pub. 587, Business Use of an IRA. medical expenses are those you can deduct on
Your Home, to help you determine the amount Hobby losses. Losses from a hobby aren’t de- Schedule A (Form 1040). For more information
you can deduct for the use of your home. ductible from other income. A hobby is an activ- about qualified medical expenses, see Pub.
Found property. If you find and keep property ity from which you don’t expect to make a profit. 502. For more information about Archer MSAs
that doesn’t belong to you that has been lost or See Activity not for profit, earlier. or Medicare Advantage MSAs, see Pub. 969,
abandoned (treasure trove), it’s taxable to you
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Health Savings Accounts and Other Tax-Fa- In most cases, the beneficiary doesn’t in- Prizes. Scholarship prizes won in a contest
vored Health Plans. clude in income any earnings distributed from a aren’t scholarships or fellowships if you don’t
QTP if the total distribution is less than or equal have to use the prizes for educational purposes.
Prizes and awards. If you win a prize in a to adjusted qualified higher education expen- You must include these amounts in your income
lucky number drawing, television or radio quiz ses. See Pub. 970 for more information. on Schedule 1 (Form 1040), line 8i, whether or
program, beauty contest, or other event, you not you use the amounts for educational purpo-
must include it in your income. For example, if Railroad retirement annuities. The following ses.
you win a $50 prize in a photography contest, types of payments are treated as pension or an-
you must report this income on Schedule 1 nuity income and are taxable under the rules Sharing/gig economy. A sharing economy is
(Form 1040), line 8i. If you refuse to accept a explained in Pub. 575, Pension and Annuity In- one in which assets are shared between individ-
prize, don’t include its value in your income. come. uals for a fee, usually through the internet. For
Prizes and awards in goods or services • Tier 1 railroad retirement benefits that are example, you rent out your car when you don’t
must be included in your income at their fair more than the social security equivalent need it, or you share your wi-fi account for a fee.
market value. benefit. A gig economy is one in which a short-term
contract or freelance work is the norm, as op-
Employee awards or bonuses. Cash • Tier 2 benefits. posed to a permanent job. For example, you
awards or bonuses given to you by your em- drive for a ride-sharing service, or work as a fit-
ployer for good work or suggestions must gen- • Vested dual benefits.
ness trainer, babysitter, or tutor.
erally be included in your income as wages. Rewards. If you receive a reward for providing Generally, if you have income from sharing
However, certain noncash employee achieve- information, include it in your income. economy transactions, or you did gig work, you
ment awards can be excluded from income.
See Bonuses and awards in chapter 5. Sale of home. You may be able to exclude must include all income received whether you
from income all or part of any gain from the sale received a Form 1099-K, Payment Card and
Pulitzer, Nobel, and similar prizes. If you or exchange of your main home. See Pub. 523. Third-Party Network Transactions, or not. See
were awarded a prize in recognition of accom- the Instructions for Schedule C (Form 1040)
plishments in religious, charitable, scientific, ar- Sale of personal items. If you sold an item and the Instructions for Schedule SE (Form
tistic, educational, literary, or civic fields, you you owned for personal use, such as a car, re- 1040).
must generally include the value of the prize in frigerator, furniture, stereo, jewelry, or silver-
your income. However, you don’t include this ware, your gain is taxable as a capital gain. Re- State tax payments. Do not include pay-
prize in your income if you meet all of the follow- port it as explained in the Instructions for ments on your tax return made by states under
ing requirements. Schedule D (Form 1040). You can’t deduct a legislatively provided social benefit programs
loss. for the promotion of the general welfare. To
• You were selected without any action on However, if you sold an item you held for in- qualify for the general welfare exclusion, state
your part to enter the contest or proceed- vestment, such as gold or silver bullion, coins, payments must be paid from a governmental
ing. or gems, any gain is taxable as a capital gain fund, be for the promotion of general welfare
• You aren’t required to perform substantial and any loss is deductible as a capital loss. (that is, based on the need of the individual or
future services as a condition to receiving family receiving such payments), and not repre-
the prize or award. Example. You sold a painting on an online sent compensation for services.
• The prize or award is transferred by the auction website for $100. You bought the paint-
payer directly to a governmental unit or ing for $20 at a garage sale years ago. Report Spillover payments under certain 2022
tax-exempt charitable organization as des- your gain as a capital gain as explained in the state tax payment programs. In 2022, some
ignated by you. Instructions for Schedule D (Form 1040). states implemented programs to provide state
payments to certain individuals residing in their
See Pub. 525 for more information about the Scholarships and fellowships. A candidate states. Many of these programs were related to
conditions that apply to the transfer. for a degree can exclude amounts received as a the various consequences of the COVID-19
qualified scholarship or fellowship. A qualified pandemic. Some of those 2022 programs provi-
Qualified Opportunity Fund (QOF). Effective scholarship or fellowship is any amount you re- ded for payments to be made in early 2023. For
December 22, 2017, Code section 1400Z-2 ceive that’s for: special tax refunds or payments that were ex-
provides a temporary deferral on inclusion in cluded from federal income in 2022, the same
gross income for capital gains invested in • Tuition and fees to enroll at or attend an
QOFs, and permanent exclusion of capital educational institution; or tax treatment applies to the special tax refund or
payments received in 2023. This means taxpay-
gains from the sale or exchange of an invest- • Fees, books, supplies, and equipment re- ers who didn’t get a payment under the program
ment in the QOF if the investment is held for at quired for courses at the educational insti- during 2022 may exclude from federal income a
least 10 years. See the Instructions for Form tution. state payment provided under the 2022 pro-
8949 on how to report your election to defer eli- Amounts used for room and board don’t qualify gram even if they actually received the payment
gible gains invested in a QOF. See the instruc- for the exclusion. See Pub. 970 for more infor- in 2023. See IRS News Release IR-2023-158 at
tions for Form 8997, Initial and Annual State- mation on qualified scholarships and fellowship IRS.gov/Newsroom/IRS-Issues-Guidance-On-
ment of Qualified Opportunity Fund (QOF) grants. State-Tax-Payments for more information.
Investments, for reporting information. For addi-
tional information, see Opportunity Zones Fre- Payment for services. In most cases, you Stolen property. If you steal property, you
quently Asked Questions at IRS.gov/ must include in income the part of any scholar- must report its fair market value in your income
Newsroom/Opportunity-Zones-Frequently- ship or fellowship that represents payment for in the year you steal it unless you return it to its
Asked-Questions. past, present, or future teaching, research, or rightful owner in the same year.
other services. This applies even if all candi- Transporting school children. Don’t include
Qualified tuition programs (QTPs). A QTP dates for a degree must perform the services to in your income a school board mileage allow-
(also known as a 529 program) is a program set receive the degree. ance for taking children to and from school if
up to allow you to either prepay or contribute to For information about the rules that apply to you aren’t in the business of taking children to
an account established for paying a student's a tax-free qualified tuition reduction provided to school. You can’t deduct expenses for providing
qualified higher education expenses at an eligi- employees and their families by an educational this transportation.
ble educational institution. A program can be institution, see Pub. 970.
established and maintained by a state, an Union benefits and dues. Amounts deducted
agency or instrumentality of a state, or an eligi- Department of Veterans Affairs (VA) pay- from your pay for union dues, assessments,
ble educational institution. ments. Allowances paid by the VA aren’t inclu- contributions, or other payments to a union
The part of a distribution representing the ded in your income. These allowances aren’t can’t be excluded from your income.
amount paid or contributed to a QTP isn’t inclu- considered scholarship or fellowship grants.
ded in income. This is a return of the investment Strike and lockout benefits. Benefits paid
in the program. to you by a union as strike or lockout benefits,
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including both cash and the fair market value of Modified adjusted gross income (AGI) limit date by which the amount must be distributed.
other property, are usually included in your in- for traditional IRA contributions. For 2023, if The report is due January 31 of the year in
come as compensation. You can exclude these you are covered by a retirement plan at work, which the minimum distribution is required. It
benefits from your income only when the facts your deduction for contributions to a traditional can be provided with the year-end fair market
clearly show that the union intended them as IRA is reduced (phased out) if your modified value statement that you normally get each
gifts to you. AGI is: year. No report is required for IRAs of owners
Utility rebates. If you’re a customer of an elec- • More than $116,000 but less than who have died.
tric utility company and you participate in the $136,000 for a married couple filing a joint IRA interest. Although interest earned from
utility's energy conservation program, you may return or a qualifying surviving spouse, your IRA is generally not taxed in the year
receive on your monthly electric bill either: • More than $73,000 but less than $83,000 earned, it isn't tax-exempt interest. Tax on your
• A reduction in the purchase price of elec- for a single individual or head of house- traditional IRA is generally deferred until you
tricity furnished to you (rate reduction), or hold, or take a distribution. Don't report this interest on
your tax return as tax-exempt interest.
• A nonrefundable credit against the pur- • Less than $10,000 for a married individual
chase price of the electricity. filing a separate return. Net Investment Income Tax (NIIT). For pur-
poses of the NIIT, net investment income
The amount of the rate reduction or nonrefunda- If you either live with your spouse or file a joint doesn't include distributions from a qualified re-
ble credit isn’t included in your income. return, and your spouse is covered by a retire- tirement plan including IRAs (for example,
ment plan at work but you aren’t, your deduction 401(a), 403(a), 403(b), 408, 408A, or 457(b)
is phased out if your modified AGI is more than plans). However, these distributions are taken
$218,000 but less than $228,000. If your modi- into account when determining the modified
fied AGI is $228,000 or more, you can’t take a AGI threshold. Distributions from a nonqualified
deduction for contributions to a traditional IRA. retirement plan are included in net investment
See How Much Can You Deduct, later. income. See Form 8960, Net Investment In-
9. Modified AGI limit for Roth IRA contribu- come Tax—Individuals, Estates, and Trusts, and
tions. For 2023, your Roth IRA contribution its instructions for more information.
limit is reduced (phased out) in the following sit- Form 8606. To designate contributions as non-
uations.
Individual deductible, you must file Form 8606.
• Your filing status is married filing jointly or
qualifying surviving spouse and your modi- The term “50 or older” is used several
Retirement fied AGI is at least $218,000. You can’t TIP times in this chapter. It refers to an IRA
make a Roth IRA contribution if your modi- owner who is age 50 or older by the
fied AGI is $228,000 or more. end of the tax year.
Arrangements
• Your filing status is single, head of house-
hold, or married filing separately and you
(IRAs) didn’t live with your spouse at any time in Introduction
2023 and your modified AGI is at least An IRA is a personal savings plan that gives you
$138,000. You can’t make a Roth IRA con- tax advantages for setting aside money for your
tribution if your modified AGI is $153,000 retirement.
What’s New or more. This chapter discusses the following topics.
IRA contribution limit increased. Beginning • Your filing status is married filing sepa- • The rules for a traditional IRA (any IRA that
in 2023, the IRA contribution limit is increased rately, you lived with your spouse at any isn't a Roth or SIMPLE IRA).
to $6,500 ($7,500 for individuals age 50 or time during the year, and your modified
older) from $6,000 ($7,000 for individuals age AGI is more than zero. You can’t make a • The Roth IRA, which features nondeducti-
50 or older). Roth IRA contribution if your modified AGI ble contributions and tax-free distributions.
Increase in required minimum distribution is $10,000 or more. Simplified Employee Pensions (SEPs) and
age. Individuals who reach age 72 after De- See Can You Contribute to a Roth IRA, later. Savings Incentive Match Plans for Employees
(SIMPLE) plans aren't discussed in this chapter.
cember 31, 2022, may delay receiving their re- 2024 modified AGI limits. You can find infor- For more information on these plans and em-
quired minimum distributions until April 1 of the mation about the 2024 contribution and AGI lim- ployees' SEP IRAs and SIMPLE IRAs that are
year following the year in which they turn age its in Pub. 590-A. part of these plans, see Pub. 560.
73.
Disaster tax relief. The special rules that pro- For information about contributions, deduc-
tions, withdrawals, transfers, rollovers, and
vide for tax-favored withdrawals and repay- Reminders other transactions, see Pub. 590-A and Pub.
ments now apply to disasters that occur on or 590-B.
after January 26, 2021. See Disaster-Related Maximum age for making traditional IRA
Relief in Pub. 590-B for more information. contributions repealed. For tax years begin- Useful Items
Distributions to terminally ill individuals. ning after 2019, there is no age limit on making You may want to see:
The exception to the 10% additional tax for contributions to your traditional IRA. For more
early distributions is expanded to apply to distri- information, see Pub. 590-A.
butions made after December 29, 2022, to an Publication
individual who has been certified by a physician Contributions to both traditional and Roth
as having a terminal illness. See Pub. 590-B for IRAs. For information on your combined contri- 560 560 Retirement Plans for Small Business
more information. bution limit if you contribute to both traditional 575 575 Pension and Annuity Income
Certain corrective distributions not subject and Roth IRAs, see Roth IRAs and traditional
to 10% early distribution tax. Beginning with IRAs, later. 590-A 590-A Contributions to Individual
Retirement Arrangements (IRAs)
distributions made on December 29, 2022, and Statement of required minimum distribu-
after, the 10% additional tax on early distribu- tion. If a minimum distribution from your IRA is 590-B 590-B Distributions from Individual
tions will not apply to the income attributed to a required, the trustee, custodian, or issuer that Retirement Arrangements (IRAs)
corrective IRA distribution, as long as the cor- held the IRA at the end of the preceding year
rective distribution is made on or before the due must either report the amount of the required
date (including extensions) of the income tax re- minimum distribution to you, or offer to figure it
turn. for you. The report or offer must include the
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Form (and Instructions) trade or business (provided your personal serv- This is the rule even in states with community
ices are a material income-producing factor) re- property laws.
5329 5329 Additional Taxes on Qualified Plans duced by the total of:
(Including IRAs) and Other Brokers' commissions. Brokers' commis-
Tax-Favored Accounts • The deduction for contributions made on sions paid in connection with your traditional
your behalf to retirement plans, and IRA are subject to the contribution limit.
8606 8606 Nondeductible IRAs • The deductible part of your self-employ- Trustees' fees. Trustees' administrative fees
ment tax.
8915-F 8915-F Qualified Disaster Retirement aren't subject to the contribution limit.
Plan Distributions and Repayments Compensation includes earnings from Qualified reservist repayments. If you are (or
self-employment even if they aren't subject to were) a member of a reserve component and
For these and other useful items, go to IRS.gov/ self-employment tax because of your religious you were ordered or called to active duty after
Forms. beliefs. September 11, 2001, you may be able to con-
tribute (repay) to an IRA amounts equal to any
Nontaxable combat pay. For IRA purpo- qualified reservist distributions you received.
Traditional IRAs ses, if you were a member of the U.S. Armed You can make these repayment contributions
Forces, your compensation includes any non- even if they would cause your total contributions
In this chapter, the original IRA (sometimes taxable combat pay you receive. to the IRA to be more than the general limit on
called an ordinary or regular IRA) is referred to
as a “traditional IRA.” A traditional IRA is any What isn't compensation? Compensation contributions. To be eligible to make these re-
IRA that isn't a Roth IRA or a SIMPLE IRA. Two doesn't include any of the following items. payment contributions, you must have received
a qualified reservist distribution from an IRA or
advantages of a traditional IRA are: • Earnings and profits from property, such as from a section 401(k) or 403(b) plan or similar
• You may be able to deduct some or all of rental income, interest income, and divi- arrangement.
your contributions to it, depending on your dend income. For more information, see Qualified reservist
circumstances; and • Pension or annuity income. repayments under How Much Can Be Contrib-
• Generally, amounts in your IRA, including • Deferred compensation received (compen- uted? in chapter 1 of Pub. 590-A.
earnings and gains, aren't taxed until they sation payments postponed from a past Contributions on your behalf to a tradi-
are distributed. year). ! tional IRA reduce your limit for contribu-
• Income from a partnership for which you CAUTION tions to a Roth IRA. (See Roth IRAs,
Who Can Open a don't provide services that are a material later.)
Traditional IRA? income-producing factor.
General limit. For 2023, the most that can be
• Conservation Reserve Program (CRP) contributed to your traditional IRA is generally
You can open and make contributions to a tradi- payments reported on Schedule SE (Form the smaller of the following amounts.
tional IRA if you (or, if you file a joint return, your 1040), line 1b.
• $6,500 ($7,500 if you are 50 or older).
spouse) received taxable compensation during • Any amounts (other than combat pay) you
the year. exclude from income, such as foreign • Your taxable compensation (defined ear-
For tax years beginning after 2019, earned income and housing costs. lier) for the year.
TIP there is no age limit on making contri- This is the most that can be contributed regard-
butions to your traditional IRA. For less of whether the contributions are to one or
more information, see Pub. 590-A. When and How Can a more traditional IRAs or whether all or part of
Traditional IRA Be the contributions are nondeductible. (See Non-
What is compensation? Generally, compen- deductible Contributions, later.) Qualified re-
sation is what you earn from working. Compen- Opened? servist repayments don't affect this limit.
sation includes wages, salaries, tips, professio-
nal fees, bonuses, and other amounts you You can open a traditional IRA at any time. Example 1. You are 34 years old and single
receive for providing personal services. The IRS However, the time for making contributions for and earned $24,000 in 2023. Your IRA contribu-
treats as compensation any amount properly any year is limited. See When Can Contribu- tions for 2023 are limited to $6,500.
shown in box 1 (Wages, tips, other compensa- tions Be Made, later.
tion) of Form W-2, Wage and Tax Statement, You can open different kinds of IRAs with a Example 2. You are an unmarried college
provided that this amount is reduced by any variety of organizations. You can open an IRA at student working part time and earned $3,500 in
amount properly shown in box 11 (Nonqualified a bank or other financial institution or with a mu- 2023. Your IRA contributions for 2023 are limi-
plans). tual fund or life insurance company. You can ted to $3,500, the amount of your compensa-
Scholarship or fellowship payments are gen- also open an IRA through your stockbroker. Any tion.
erally compensation for this purpose only if re- IRA must meet Internal Revenue Code require-
ported in box 1 of your Form W-2. However, for ments. Kay Bailey Hutchison Spousal IRA limit. For
2023, if you file a joint return and your taxable
tax years beginning after 2019, certain non-tui- Kinds of traditional IRAs. Your traditional IRA compensation is less than that of your spouse,
tion fellowship and stipend payments not repor- can be an individual retirement account or an- the most that can be contributed for the year to
ted to you on Form W-2 are treated as taxable nuity. It can be part of either a SEP or an em- your IRA is the smaller of the following amounts.
compensation for IRA purposes. These ployer or employee association trust account.
amounts include taxable non-tuition fellowship 1. $6,500 ($7,500 if you are 50 or older).
and stipend payments made to aid you in the 2. The total compensation includible in the
pursuit of graduate or postdoctoral study and in- How Much Can Be gross income of both you and your spouse
cluded in your gross income under the rules dis- Contributed? for the year, reduced by the following two
cussed in chapter 1 of Pub. 970, Tax Benefits amounts.
for Education. There are limits and other rules that affect the
Compensation also includes commissions amount that can be contributed to a traditional a. Your spouse's IRA contribution for the
and taxable alimony and separate maintenance IRA. These limits and other rules are explained year to a traditional IRA.
payments. below. b. Any contribution for the year to a Roth
Self-employment income. If you are Community property laws. Except as dis- IRA on behalf of your spouse.
self-employed (a sole proprietor or a partner), cussed later under Kay Bailey Hutchison This means that the total combined contribu-
compensation is the net earnings from your Spousal IRA limit, each spouse figures their tions that can be made for the year to your IRA
limit separately, using their own compensation. and your spouse's IRA can be as much as
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$13,000 ($14,000 if only one of you is 50 or for total contributions to one or more traditional For Which Year(s) Are You
older, or $15,000 if both of you are 50 or older). IRAs of up to the lesser of: Covered?
• $6,500 ($7,500 if you are 50 or older in Special rules apply to determine the tax years
When Can Contributions 2023), or for which you are covered by an employer plan.
Be Made? • 100% of your compensation. These rules differ depending on whether the
plan is a defined contribution plan or a defined
This limit is reduced by any contributions made benefit plan.
As soon as you open your traditional IRA, con- to a 501(c)(18) plan on your behalf.
tributions can be made to it through your Tax year. Your tax year is the annual account-
chosen sponsor (trustee or other administrator). Kay Bailey Hutchison Spousal IRA. In the ing period you use to keep records and report
Contributions must be in the form of money case of a married couple with unequal compen- income and expenses on your income tax re-
(cash, check, or money order). Property can't sation who file a joint return, the deduction for turn. For almost all people, the tax year is the
be contributed. contributions to the traditional IRA of the spouse calendar year.
with less compensation is limited to the lesser
Contributions must be made by due date. of the following amounts. Defined contribution plan. Generally, you are
Contributions can be made to your traditional covered by a defined contribution plan for a tax
IRA for a year at any time during the year or by 1. $6,500 ($7,500 if the spouse with the year if amounts are contributed or allocated to
the due date for filing your return for that year, lower compensation is 50 or older in your account for the plan year that ends with or
not including extensions. 2023). within that tax year.
Designating year for which contribution is 2. The total compensation includible in the A defined contribution plan is a plan that
made. If an amount is contributed to your tradi- gross income of both spouses for the year provides for a separate account for each person
tional IRA between January 1 and April 15, you reduced by the following three amounts. covered by the plan. Types of defined contribu-
tion plans include profit-sharing plans, stock bo-
should tell the sponsor which year (the current a. The IRA deduction for the year of the nus plans, and money purchase pension plans.
year or the previous year) the contribution is for. spouse with the greater compensa- For additional information, see Pub. 590-A.
If you don't tell the sponsor which year it is for, tion.
the sponsor can assume, and report to the IRS, Defined benefit plan. If you are eligible to par-
that the contribution is for the current year (the b. Any designated nondeductible contri- ticipate in your employer's defined benefit plan
year the sponsor received it). bution for the year made on behalf of for the plan year that ends within your tax year,
the spouse with the greater compen-
Filing before a contribution is made. You sation. you are covered by the plan. This rule applies
can file your return claiming a traditional IRA even if you:
contribution before the contribution is actually c. Any contributions for the year to a • Declined to participate in the plan,
made. Generally, the contribution must be made Roth IRA on behalf of the spouse with
by the due date of your return, not including ex- the greater compensation. • Didn't make a required contribution, or
tensions. • Didn't perform the minimum service re-
This limit is reduced by any contributions to a
Contributions not required. You don't have to 501(c)(18) plan on behalf of the spouse with the quired to accrue a benefit for the year.
contribute to your traditional IRA for every tax lesser compensation. A defined benefit plan is any plan that isn't a
year, even if you can. defined contribution plan. In a defined benefit
Note. If you were divorced or legally sepa- plan, the level of benefits to be provided to each
rated (and didn't remarry) before the end of the participant is spelled out in the plan. The plan
How Much Can You year, you can't deduct any contributions to your administrator figures the amount needed to pro-
Deduct? spouse's IRA. After a divorce or legal separa- vide those benefits, and those amounts are
tion, you can deduct only contributions to your contributed to the plan. Defined benefit plans in-
Generally, you can deduct the lesser of: own IRA. Your deductions are subject to the clude pension plans and annuity plans.
• The contributions to your traditional IRA for rules for single individuals.
No vested interest. If you accrue a benefit for
the year, or Covered by an employer retirement plan. If a plan year, you are covered by that plan even if
• The general limit (or the Kay Bailey Hutchi- you or your spouse was covered by an em- you have no vested interest in (legal right to) the
son Spousal IRA limit, if it applies). ployer retirement plan at any time during the accrual.
year for which contributions were made, your
However, if you or your spouse was covered by deduction may be further limited. This is dis- Situations in Which You Aren’t
an employer retirement plan, you may not be cussed later under Limit if Covered by Employer
able to deduct this amount. See Limit if Covered Plan. Limits on the amount you can deduct don't Covered
by Employer Plan, later. affect the amount that can be contributed. See Unless you are covered under another em-
You may be able to claim a credit for Nondeductible Contributions, later. ployer plan, you aren't covered by an employer
TIP contributions to your traditional IRA. plan if you are in one of the situations described
For more information, see chapter 3 of Are You Covered by an Employer below.
Pub. 590-A. Plan? Social security or railroad retirement. Cov-
Trustees' fees. Trustees' administrative fees The Form W-2 you receive from your employer erage under social security or railroad retire-
that are billed separately and paid in connection has a box used to indicate whether you were ment isn't coverage under an employer retire-
with your traditional IRA aren't deductible as covered for the year. The “Retirement plan” box ment plan.
IRA contributions. You are also not able to de- should be checked if you were covered. Benefits from a previous employer's plan. If
duct these fees as an itemized deduction. Reservists and volunteer firefighters should you receive retirement benefits from a previous
also see Situations in Which You Aren’t Cov- employer's plan, you aren't covered by that
Brokers' commissions. Brokers' commis- ered, later. plan.
sions are part of your IRA contribution and, as If you aren't certain whether you were cov- Reservists. If the only reason you participate
such, are deductible subject to the limits. ered by your employer's retirement plan, you in a plan is because you are a member of a re-
Full deduction. If neither you nor your spouse should ask your employer. serve unit of the U.S. Armed Forces, you may
was covered for any part of the year by an em- Federal judges. For purposes of the IRA de- not be covered by the plan. You aren't covered
ployer retirement plan, you can take a deduction duction, federal judges are covered by an em- by the plan if both of the following conditions are
ployer retirement plan. met.
1. The plan you participate in is established
for its employees by:
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Table 9-1. Effect of Modified AGI on Deduction if You Are Covered by 1 to only a partial (reduced) deduction or no de-
Retirement Plan at Work duction at all, depending on your income and
your filing status.
If you are covered by a retirement plan at work, use this table to determine if your modified AGI Your deduction begins to decrease (phase
affects the amount of your deduction. out) when your income rises above a certain
amount and is eliminated altogether when it
IF your filing status is... AND your modified AGI is... THEN you can take... reaches a higher amount. These amounts vary
depending on your filing status.
Single $73,000 or less a full deduction. To determine if your deduction is subject to
more than $73,000 a partial deduction. phaseout, you must determine your modified
or but less than $83,000 AGI and your filing status. See Filing status and
Modified AGI, later. Then use Table 9-1 or Ta-
Head of household $83,000 or more no deduction. ble 9-2 to determine if the phaseout applies.
Married filing jointly $116,000 or less a full deduction. Social security recipients. Instead of using
more than $116,000 a partial deduction. Table 9-1 or Table 9-2, use the worksheets in
or but less than $136,000 Appendix B of Pub. 590-A if, for the year, all of
the following apply.
Qualifying surviving $136,000 or more no deduction. • You received social security benefits.
spouse • You received taxable compensation.
Married filing less than $10,000 a partial deduction. • Contributions were made to your traditional
separately2 IRA.
$10,000 or more no deduction.
• You or your spouse was covered by an em-
1 Modified AGI (adjusted gross income). See Modified AGI, later. ployer retirement plan.
2 If you didn't live with your spouse at any time during the year, your filing status is considered Single for this Use those worksheets to figure your IRA deduc-
purpose (therefore, your IRA deduction is determined under the “Single” column). tion, your nondeductible contribution, and the
taxable portion, if any, of your social security
Table 9-2. Effect of Modified AGI on Deduction if You Aren’t Covered by 1 benefits.
Retirement Plan at Work Deduction phaseout. If you are covered by an
If you aren't covered by a retirement plan at work, use this table to determine if your modified AGI employer retirement plan and you didn't receive
affects the amount of your deduction. any social security retirement benefits, your IRA
deduction may be reduced or eliminated de-
pending on your filing status and modified AGI
IF your filing status is... AND your modified AGI is... THEN you can take... as shown in Table 9-1.
Single, any amount a full deduction. If your spouse is covered. If you aren't
Head of household, or covered by an employer retirement plan, but
Qualifying surviving spouse your spouse is, and you didn't receive any so-
cial security benefits, your IRA deduction may
Married filing jointly or any amount a full deduction. be reduced or eliminated entirely depending on
separately with a spouse who your filing status and modified AGI as shown in
isn't covered by a plan at work Table 9-2.
Married filing jointly with a $218,000 or less a full deduction. Filing status. Your filing status depends pri-
spouse who covered by a plan is more than $218,000 a partial deduction. marily on your marital status. For this purpose,
at work but less than $228,000 you need to know if your filing status is single,
head of household, married filing jointly, qualify-
$228,000 or more no deduction. ing surviving spouse, or married filing sepa-
Married filing separately with a less than $10,000 a partial deduction. rately. If you need more information on filing sta-
spouse who covered by a plan is $10,000 or more no deduction. tus, see chapter 2.
at work2 Lived apart from spouse. If you didn't live
with your spouse at any time during the year
1 Modified AGI (adjusted gross income). See Modified AGI, later. and you file a separate return, your filing status,
2 You are entitled to the full deduction if you didn't live with your spouse at any time during the year. for this purpose, is single.
Modified AGI. You may be able to use Work-
a. The United States, 1. The plan you participate in is established sheet 9-1 to figure your modified AGI. However,
b. A state or political subdivision of a for its employees by: if you made contributions to your IRA for 2023
state, or a. The United States, and received a distribution from your IRA in
2023, see Pub. 590-A.
c. An instrumentality of either (a) or (b) b. A state or political subdivision of a
above. state, or Don't assume that your modified AGI is
the same as your compensation. Your
2. You didn't serve more than 90 days on ac- c. An instrumentality of either (a) or (b) CAUTION! modified AGI may include income in
tive duty during the year (not counting duty above. addition to your compensation (discussed ear-
for training). 2. Your accrued retirement benefits at the be- lier), such as interest, dividends, and income
Volunteer firefighters. If the only reason you ginning of the year won't provide more from IRA distributions.
participate in a plan is because you are a volun- than $1,800 per year at retirement. When filing Form 1040 or 1040-SR, refigure
teer firefighter, you may not be covered by the the AGI amount on line 11 without taking into
plan. You aren't covered by the plan if both of Limit if Covered by Employer Plan account any of the following amounts.
the following conditions are met.
If either you or your spouse was covered by an • IRA deduction.
employer retirement plan, you may be entitled
• Student loan interest deduction.
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•  Foreign earned income exclusion.                  From Series EE and I U.S. Savings Bonds • Exclusion of employer-provided adoption 
•  Foreign housing exclusion or deduction.           Issued After 1989.                        benefits shown on Form 8839, Qualified 
                                                                                               Adoption Expenses.
•  Exclusion of qualified savings bond interest 
   shown on Form 8815, Exclusion of Interest                                                 This is your modified AGI.

82                                         Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

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Worksheet 9-1. Figuring Your Modified AGI
Keep for Your Records
Use this worksheet to figure your modified AGI for traditional IRA purposes.
1. Enter your AGI from Form 1040 or 1040-SR, line 11, figured without taking into account the amount from
Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . . . . . . . . . . . . . 2.
3. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 . . . . . . . . . . . . . . . . . 3.
4. Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter any excludable savings bond interest from Form 8815, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 . . . . . . . . . . . . . . . . . . 6.
7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes . . . . . . . . . . . . . . . . . . . . . . 7.

Both contributions for 2023 and distribu- Form 8606. To designate contributions as non- Inherited IRAs
tions in 2023. If all three of the following apply, deductible, you must file Form 8606.
any IRA distributions you received in 2023 may You don't have to designate a contribution If you inherit a traditional IRA, you are called a
be partly tax free and partly taxable. as nondeductible until you file your tax return. beneficiary. A beneficiary can be any person or
• You received distributions in 2023 from one When you file, you can even designate other- entity the owner chooses to receive the benefits
or more traditional IRAs. wise deductible contributions as nondeductible. of the IRA after the owner dies. Beneficiaries of
You must file Form 8606 to report nondeduc- a traditional IRA must include in their gross in-
• You made contributions to a traditional IRA tible contributions even if you don't have to file a come any taxable distributions they receive.
for 2023. tax return for the year.
Inherited from spouse. If you inherit a tradi-
• Some of those contributions may be non- A Form 8606 isn't used for the year that tional IRA from your spouse, you generally have
deductible contributions. ! you make a rollover from a qualified re- the following three choices.
If this is your situation, you must figure the taxa- CAUTION tirement plan to a traditional IRA and
ble part of the traditional IRA distribution before the rollover includes nontaxable amounts. In 1. Treat it as your own IRA by designating
you can figure your modified AGI. To do this, those situations, a Form 8606 is completed for yourself as the account owner.
you can use Worksheet 1-1 in Pub. 590-B. the year you take a distribution from that IRA. 2. Treat it as your own by rolling it over into
If at least one of the above doesn't apply, fig- See Form 8606 under Distributions Fully or your IRA, or to the extent it is taxable, into
ure your modified AGI using Worksheet 9-1. Partly Taxable, later. a:
How to figure your reduced IRA deduction. Failure to report nondeductible contribu- a. Qualified employer plan,
You can figure your reduced IRA deduction for tions. If you don't report nondeductible contri- b. Qualified employee annuity plan (sec-
Form 1040 or 1040-SR by using the worksheets butions, all of the contributions to your tradi- tion 403(a) plan),
in chapter 1 of Pub. 590-A. Also, the Instruc- tional IRA will be treated as deductible
tions for Form 1040 include similar worksheets contributions when withdrawn. All distributions c. Tax-sheltered annuity plan (section
that you may be able to use instead. from your IRA will be taxed unless you can 403(b) plan), or
show, with satisfactory evidence, that nonde- d. Deferred compensation plan of a state
Reporting Deductible ductible contributions were made. or local government (section 457
Contributions Penalty for overstatement. If you overstate plan).
When filing Form 1040 or 1040-SR, enter your the amount of nondeductible contributions on 3. Treat yourself as the beneficiary rather
IRA deduction on Schedule 1 (Form 1040), your Form 8606 for any tax year, you must pay a than treating the IRA as your own.
line 20. penalty of $100 for each overstatement, unless
it was due to reasonable cause. Treating it as your own. You will be consid-
ered to have chosen to treat the IRA as your
Nondeductible Penalty for failure to file Form 8606. You own if:
will have to pay a $50 penalty if you don't file a
Contributions required Form 8606, unless you can prove that • Contributions (including rollover contribu-
Although your deduction for IRA contributions the failure was due to reasonable cause. tions) are made to the inherited IRA, or
may be reduced or eliminated, contributions • You don't take the required minimum distri-
can be made to your IRA up to the general limit Tax on earnings on nondeductible contribu- bution for a year as a beneficiary of the
or, if it applies, the Kay Bailey Hutchison tions. As long as contributions are within the IRA.
Spousal IRA limit. The difference between your contribution limits, none of the earnings or gains You will only be considered to have chosen to
total permitted contributions and your IRA de- on contributions (deductible or nondeductible) treat the IRA as your own if:
duction, if any, is your nondeductible contribu- will be taxed until they are distributed. See You are the sole beneficiary of the IRA, and
tion. When Can You Withdraw or Use IRA Assets, •
later. • You have an unlimited right to withdraw
Example. You are 30 years old and single. amounts from it.
In 2023, you were covered by a retirement plan Cost basis. You will have a cost basis in your
at work. Your salary was $67,000. Your modified traditional IRA if you made any nondeductible However, if you receive a distribution from
AGI was $85,000. You made a $6,500 IRA con- contributions. Your cost basis is the sum of the your deceased spouse's IRA, you can roll that
tribution for 2023. Because you were covered nondeductible contributions to your IRA minus distribution over into your own IRA within the
by a retirement plan and your modified AGI was any withdrawals or distributions of nondeducti- 60-day time limit, as long as the distribution isn't
over $83,000, you can't deduct the $6,500 IRA ble contributions. a required distribution, even if you aren't the
contribution. You must designate this contribu- sole beneficiary of your deceased spouse's
tion as a nondeductible contribution by report- IRA.
ing it on Form 8606, as explained next. Inherited from someone other than spouse.
If you inherit a traditional IRA from anyone other
than your deceased spouse, you can't treat the
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inherited IRA as your own. This means that you other (or the same) IRA in any 1-year period, re-
can't make any contributions to the IRA. It also gardless of the number of IRAs you own. The
means you can't roll over any amounts into or Treatment of rollovers. You can't deduct a limit applies by aggregating all of an individual's
out of the inherited IRA. However, you can make rollover contribution, but you must report the IRAs, including SEP and SIMPLE IRAs, as well
a trustee-to-trustee transfer as long as the IRA rollover distribution on your tax return as dis- as traditional and Roth IRAs, effectively treating
into which amounts are being moved is set up cussed later under Reporting rollovers from them as one IRA for purposes of the limit. How-
and maintained in the name of the deceased IRAs and Reporting rollovers from employer ever, trustee-to-trustee transfers between IRAs
IRA owner for the benefit of you as beneficiary. plans. aren't limited and rollovers from traditional IRAs
For more information, see Inherited IRAs un- Rollover notice. A written explanation of to Roth IRAs (conversions) aren't limited.
der Rollover From One IRA Into Another, later. rollover treatment must be given to you by the
plan (other than an IRA) making the distribution. Example. You have three traditional IRAs:
Can You Move Retirement See Written explanation to recipients in Pub. IRA-1, IRA-2, and IRA-3. You didn't take any
590-A. distributions from your IRAs in 2023. On Janu-
Plan Assets? ary 1, 2024, you took a distribution from IRA-1
Kinds of rollovers from a traditional IRA. and rolled it over into IRA-2 on the same day.
You can transfer, tax free, assets (money or You may be able to roll over, tax free, a distribu- For 2024, you can't roll over any other 2023 IRA
property) from other retirement plans (including tion from your traditional IRA into a qualified distribution, including a rollover distribution in-
traditional IRAs) to a traditional IRA. You can plan. These plans include the federal Thrift Sav- volving IRA-3. This wouldn’t apply to a
make the following kinds of transfers. ings Plan (for federal employees), deferred trustee-to-trustee transfer or a Roth IRA conver-
compensation plans of state or local govern- sion.
• Transfers from one trustee to another. ments (section 457 plans), and tax-sheltered
• Rollovers. annuity plans (section 403(b) plans). The part of Partial rollovers. If you withdraw assets from a
• Transfers incident to a divorce. the distribution that you can roll over is the part traditional IRA, you can roll over part of the with-
that would otherwise be taxable (includible in drawal tax free and keep the rest of it. The
Transfers to Roth IRAs. Under certain condi- your income). Qualified plans may, but aren't re- amount you keep will generally be taxable (ex-
tions, you can move assets from a traditional quired to, accept such rollovers. cept for the part that is a return of nondeductible
IRA or from a designated Roth account to a contributions). The amount you keep may be
Roth IRA. You can also move assets from a Time limit for making a rollover contribu- subject to the 10% additional tax on early distri-
qualified retirement plan to a Roth IRA. See Can tion. You must generally make the rollover con- butions, discussed later under What Acts Result
You Move Amounts Into a Roth IRA? under tribution by the 60th day after the day you re- in Penalties or Additional Taxes.
Roth IRAs, later. ceive the distribution from your traditional IRA or
your employer's plan. Required distributions. Amounts that must
be distributed during a particular year under the
The IRS may waive the 60-day requirement required minimum distribution rules (discussed
Trustee-to-Trustee Transfer where the failure to do so would be against later) aren't eligible for rollover treatment.
A transfer of funds in your traditional IRA from equity or good conscience, such as in the event
one trustee directly to another, either at your re- of a casualty, disaster, or other event beyond Inherited IRAs. If you inherit a traditional IRA
quest or at the trustee's request, isn't a rollover. your reasonable control. For more information, from your spouse, you can generally roll it over,
This includes the situation where the current see Can You Move Retirement Plan Assets? in or you can choose to make the inherited IRA
trustee issues a check to the new trustee, but chapter 1 of Pub. 590-A. your own. See Treating it as your own, earlier.
gives it to you to deposit. Because there is no Not inherited from spouse. If you inherit a
distribution to you, the transfer is tax free. Be- Extension of rollover period. If an amount
cause it isn't a rollover, it isn't affected by the distributed to you from a traditional IRA or a traditional IRA from someone other than your
1-year waiting period required between roll- qualified employer retirement plan is a frozen spouse, you can't roll it over or allow it to receive
overs, discussed later under Rollover From One deposit at any time during the 60-day period al- a rollover contribution. You must withdraw the
IRA Into Another. For information about direct lowed for a rollover, special rules extend the roll- IRA assets within a certain period. For more in-
transfers to IRAs from retirement plans other over period. For more information, see Can You formation, see When Must You Withdraw As-
than IRAs, see Can You Move Retirement Plan Move Retirement Plan Assets? in chapter 1 of sets? (Required Minimum Distributions) in
Assets? in chapter 1 and Can You Move Pub. 590-A. chapter 1 of Pub. 590-B.
Amounts Into a Roth IRA? in chapter 2 of Pub. Reporting rollovers from IRAs. Report any
590-A. Rollover From One IRA Into rollover from one traditional IRA to the same or
Another another traditional IRA on Form 1040 or
1040-SR as follows.
Rollovers You can withdraw, tax free, all or part of the as- Enter the total amount of the distribution on
Generally, a rollover is a tax-free distribution to sets from one traditional IRA if you reinvest Form 1040 or 1040-SR, line 4a. If the total
you of cash or other assets from one retirement them within 60 days in the same or another tra- amount on Form 1040 or 1040-SR, line 4a, was
plan that you contribute (roll over) to another re- ditional IRA. Because this is a rollover, you can't rolled over, enter zero on Form 1040 or
tirement plan. The contribution to the second deduct the amount that you reinvest in an IRA. 1040-SR, line 4b. If the total distribution wasn't
retirement plan is called a rollover contribution. rolled over, enter the taxable portion of the part
Waiting period between rollovers. Generally,
Note. An amount rolled over tax free from if you make a tax-free rollover of any part of a that wasn't rolled over on Form 1040 or
one retirement plan to another is generally in- distribution from a traditional IRA, you can't, 1040-SR, line 4b. Enter “Rollover” next to Form
cludible in income when it is distributed from the within a 1-year period, make a tax-free rollover 1040 or 1040-SR, line 4b. For more information,
second plan. of any later distribution from that same IRA. You see the Instructions for Form 1040.
also can't make a tax-free rollover of any If you rolled over the distribution into a quali-
Kinds of rollovers to a traditional IRA. You amount distributed, within the same 1-year pe- fied plan (other than an IRA) or you make the
can roll over amounts from the following plans riod, from the IRA into which you made the rollover in 2024, attach a statement explaining
into a traditional IRA. tax-free rollover. what you did.
• A traditional IRA. The 1-year period begins on the date you re-
ceive the IRA distribution, not on the date you
• An employer's qualified retirement plan for roll it over into an IRA. Rules apply to the num-
its employees. ber of rollovers you can have with your tradi-
• A deferred compensation plan of a state or tional IRAs. See Application of one-rollover limi-
local government (section 457 plan). tation next.
• A tax-sheltered annuity plan (section Application of one-rollover limitation. You
403(b) plan). can make only one rollover from an IRA to an-
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Rollover From Employer's Plan receive the distribution on your behalf can be If you must include any amount in your gross
Into an IRA treated as an eligible rollover distribution if you income, you may have to increase your with-
are the designated beneficiary of the plan and holding or make estimated tax payments. See
You can roll over into a traditional IRA all or part not the employee's spouse. The IRA is treated chapter 4.
of an eligible rollover distribution you receive as an inherited IRA. For more information about
from your (or your deceased spouse's): inherited IRAs, see Inherited IRAs, earlier. Recharacterizations
• Employer's qualified pension, profit-shar- Reporting rollovers from employer plans. You may be able to treat a contribution made to
ing, or stock bonus plan; Enter the total distribution (before income tax or one type of IRA as having been made to a dif-
• Annuity plan; other deductions were withheld) on Form 1040 ferent type of IRA. This is called recharacteriz-
• Tax-sheltered annuity plan (section 403(b) or 1040-SR, line 4a. This amount should be ing the contribution. See Can You Move Retire-
plan); or shown in box 1 of Form 1099-R, Distributions ment Plan Assets? in chapter 1 of Pub. 590-A
From Pensions, Annuities, Retirement or for more detailed information.
• Governmental deferred compensation plan Profit-Sharing Plans, IRAs, Insurance Con-
(section 457 plan). tracts, etc. From this amount, subtract any con- How to recharacterize a contribution. To re-
A qualified plan is one that meets the re- tributions (usually shown in box 5 of Form characterize a contribution, you must generally
quirements of the Internal Revenue Code. 1099-R) that were taxable to you when made. have the contribution transferred from the first
From that result, subtract the amount that was IRA (the one to which it was made) to the sec-
Eligible rollover distribution. Generally, an rolled over either directly or within 60 days of re- ond IRA in a trustee-to-trustee transfer. If the
eligible rollover distribution is any distribution of ceiving the distribution. Enter the remaining transfer is made by the due date (including ex-
all or part of the balance to your credit in a quali- amount, even if zero, on Form 1040 or tensions) for your tax return for the year during
fied retirement plan except the following. 1040-SR, line 4b. Also, enter "Rollover" next to which the contribution was made, you can elect
1. A required minimum distribution (ex- Form 1040 or 1040-SR, line 4b. to treat the contribution as having been origi-
plained later under When Must You With- nally made to the second IRA instead of to the
first IRA. If you recharacterize your contribution,
draw IRA Assets? (Required Minimum Transfers Incident to Divorce you must do all three of the following.
Distributions)). If an interest in a traditional IRA is transferred • Include in the transfer any net income allo-
2. A hardship distribution. from your spouse or former spouse to you by a cable to the contribution. If there was a
3. Any of a series of substantially equal peri- divorce or separate maintenance decree or a loss, the net income you must transfer may
odic distributions paid at least once a year written document related to such a decree, the be a negative amount.
over: interest in the IRA, starting from the date of the
transfer, is treated as your IRA. The transfer is • Report the recharacterization on your tax
a. Your lifetime or life expectancy, tax free. For detailed information, see Distribu- return for the year during which the contri-
tions under divorce or similar proceedings (al- bution was made.
b. The lifetimes or life expectancies of ternate payees) under Rollover From Employ- • Treat the contribution as having been
you and your beneficiary, or er's Plan Into an IRA in Pub. 590-A. made to the second IRA on the date that it
c. A period of 10 years or more. was actually made to the first IRA.
4. Corrective distributions of excess contribu- Converting From Any Traditional No recharacterizations of conversions
tions or excess deferrals, and any income IRA to a Roth IRA made in 2018 or later. A conversion of a tradi-
allocable to the excess, or of excess an- tional IRA to a Roth IRA, and a rollover from any
nual additions and any allocable gains. Allowable conversions. You can withdraw all
or part of the assets from a traditional IRA and other eligible retirement plan to a Roth IRA,
5. A loan treated as a distribution because it reinvest them (within 60 days) in a Roth IRA. made in tax years beginning after tax year
doesn't satisfy certain requirements either The amount that you withdraw and timely con- 2017, can’t be recharacterized as having been
when made or later (such as upon de- tribute (convert) to the Roth IRA is called a con- made to a traditional IRA. If you made a conver-
fault), unless the participant's accrued version contribution. If properly (and timely) rol- sion in the 2017 tax year, you had until the due
benefits are reduced (offset) to repay the led over, the 10% additional tax on early date (including extensions) for filing the return
loan. For more information, see Plan loan distributions won't apply. However, a part or all for that tax year to recharacterize it.
offsets under Time Limit for Making a Roll- of the conversion contribution from your tradi- No deduction allowed. You can't deduct the
over Contribution in Pub. 590-A. tional IRA is included in your gross income. contribution to the first IRA. Any net income you
6. Dividends on employer securities. Required distributions. You can't convert transfer with the recharacterized contribution is
7. The cost of life insurance coverage. amounts that must be distributed from your tra- treated as earned in the second IRA.
ditional IRA for a particular year (including the How do you recharacterize a contribution?
Your rollover into a traditional IRA may in- calendar year in which you reach age 72 under To recharacterize a contribution, you must notify
clude both amounts that would be taxable and the required minimum distribution rules (dis- both the trustee of the first IRA (the one to
amounts that wouldn’t be taxable if they were cussed later)). which the contribution was actually made) and
distributed to you but not rolled over. To the ex- Income. You must include in your gross in- the trustee of the second IRA (the one to which
tent the distribution is rolled over into a tradi- come distributions from a traditional IRA that the contribution is being moved) that you have
tional IRA, it isn’t includible in your income. you would have had to include in income if you elected to treat the contribution as having been
Any nontaxable amounts that you roll hadn't converted them into a Roth IRA. These made to the second IRA rather than the first.
TIP over into your traditional IRA become amounts are normally included in income on You must make the notifications by the date of
part of your basis (cost) in your IRAs. your return for the year that you converted them the transfer. Only one notification is required if
To recover your basis when you take distribu- from a traditional IRA to a Roth IRA. both IRAs are maintained by the same trustee.
tions from your IRA, you must complete Form You don't include in gross income any part of The notification(s) must include all of the follow-
8606 for the year of the distribution. See Form a distribution from a traditional IRA that is a re- ing information.
8606 under Distributions Fully or Partly Taxable, turn of your basis, as discussed later. • The type and amount of the contribution to
later. You must file Form 8606 to report 2023 con- the first IRA that is to be recharacterized.
versions from traditional, SEP, or SIMPLE IRAs • The date on which the contribution was
Rollover by nonspouse beneficiary. A direct to a Roth IRA in 2023 (unless you recharacter- made to the first IRA and the year for which
transfer from a deceased employee's qualified ized the entire amount) and to figure the amount it was made.
pension, profit-sharing, or stock bonus plan; an- to include in income.
nuity plan; tax-sheltered annuity (section • A direction to the trustee of the first IRA to
403(b)) plan; or governmental deferred com- transfer in a trustee-to-trustee transfer the
pensation (section 457) plan to an IRA set up to
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amount of the contribution and any net in- tions under What Acts Result in Penalties or Ad- decedent's IRA, see When Must You Withdraw
come (or loss) allocable to the contribution ditional Taxes? in Pub. 590-B. Assets? (Required Minimum Distributions) in
to the trustee of the second IRA. chapter 1 of Pub. 590-B.
• The name of the trustee of the first IRA and When Must You Withdraw
the name of the trustee of the second IRA. Are Distributions Taxable?
IRA Assets? (Required
• Any additional information needed to make
the transfer. Minimum Distributions) In general, distributions from a traditional IRA
are taxable in the year you receive them.
Reporting a recharacterization. If you elect You can't keep funds in a traditional IRA indefi-
to recharacterize a contribution to one IRA as a nitely. Eventually, they must be distributed. If Exceptions. Exceptions to distributions from
contribution to another IRA, you must report the there are no distributions, or if the distributions traditional IRAs being taxable in the year you re-
recharacterization on your tax return as directed aren't large enough, you may have to pay a 25% ceive them are:
by Form 8606 and its instructions. You must excise tax on the amount not distributed as re- • Rollovers;
treat the contribution as having been made to quired. See Excess Accumulations (Insufficient
the second IRA. Distributions), later. The requirements for dis- • Qualified charitable distributions (QCDs),
tributing IRA funds differ depending on whether discussed later;
you are the IRA owner or the beneficiary of a • Tax-free withdrawals of contributions, dis-
When Can You Withdraw decedent's IRA. cussed earlier; and
or Use IRA Assets? Required minimum distribution. The amount • The return of nondeductible contributions,
There are rules limiting use of your IRA assets that must be distributed each year is referred to discussed later under Distributions Fully or
and distributions from it. Violation of the rules as the “required minimum distribution.” Partly Taxable.
generally results in additional taxes in the year Distributions not eligible for rollover. Although a conversion of a traditional
of violation. See What Acts Result in Penalties Amounts that must be distributed (required min- ! IRA is considered a rollover for Roth
or Additional Taxes, later. imum distributions) during a particular year CAUTION IRA purposes, it isn't an exception to
Contributions returned before the due date aren't eligible for rollover treatment. the rule that distributions from a traditional IRA
are taxable in the year you receive them. Con-
of return. If you made IRA contributions in IRA owners. If you are the owner of a tradi- version distributions are includible in your gross
2023, you can withdraw them tax free by the tional IRA, you must generally start receiving income subject to this rule and the special rules
due date of your return. If you have an extension distributions from your IRA by April 1 of the year for conversions explained in Converting From
of time to file your return, you can withdraw following the year in which you reach age 72. Any Traditional IRA Into a Roth IRA under Can
them tax free by the extended due date. You April 1 of the year following the year in which You Move Retirement Plan Assets? in chapter 1
can do this if, for each contribution you with- you reach age 72 is referred to as the “required of Pub. 590-A.
draw, both of the following conditions apply. beginning date.”
• You didn't take a deduction for the contri- Distributions by the required beginning Qualified charitable distributions (QCDs). A
bution. date. You must receive at least a minimum QCD is generally a nontaxable distribution
• You withdraw any interest or other income amount for each year starting with the year you made directly by the trustee of your IRA to an
earned on the contribution. You can take reach age 72. If you don't (or didn't) receive that organization eligible to receive tax deductible
into account any loss on the contribution minimum amount in the year you become age contributions. See Qualified Charitable Distribu-
while it was in the IRA when figuring the 72, then you must receive distributions for the tions in Pub. 590-B for more information.
amount that must be withdrawn. If there year you become age 72 by April 1 of the next A QCD will count towards your required
was a loss, the net income earned on the year. TIP minimum distribution. See Qualified
contribution may be a negative amount. If an IRA owner dies after reaching age 72 charitable distributions under Are Dis-
but before April 1 of the next year, no minimum tributions Taxable? in chapter 1 of Pub. 590-B
Note. To figure the amount you must with- distribution is required because death occurred for more information.
draw, see Worksheet 1-4 under When Can You before the required beginning date.
Withdraw or Use Assets? in chapter 1 of Pub. Individuals who reach age 72 after De- Ordinary income. Distributions from tradi-
590-A. TIP cember 31, 2022, may delay receiving tional IRAs that you include in income are taxed
their required minimum distributions as ordinary income.
Earnings includible in income. You must until April 1 of the year following the year in No special treatment. In figuring your tax, you
include in income any earnings on the contribu- which they reach age 73. can't use the 10-year tax option or capital gain
tions you withdraw. Include the earnings in in-
treatment that applies to lump-sum distributions
come for the year in which you made the contri- Even if you begin receiving distribu- from qualified retirement plans.
butions, not in the year in which you withdraw ! tions before you attain age 72, you
them. CAUTION must begin figuring and receiving re-
Generally, except for any part of a with- quired minimum distributions by your required Distributions Fully or Partly
beginning date. Taxable
CAUTION contributions (basis), any withdrawal of
! drawal that is a return of nondeductible Distributions from your traditional IRA may be
your contributions after the due date (or exten- Distributions after the required beginning fully or partly taxable, depending on whether
ded due date) of your return will be treated as a date. The required minimum distribution for your IRA includes any nondeductible contribu-
taxable distribution. Excess contributions can any year after the year you turn age 72 must be tions.
also be recovered tax free as discussed under made by December 31 of that later year. Fully taxable. If only deductible contributions
What Acts Result in Penalties or Additional were made to your traditional IRA (or IRAs, if
Taxes, later. you have more than one), you have no basis in
Beneficiaries. If you are the beneficiary of a
Early distributions tax. The 10% additional decedent's traditional IRA, the requirements for your IRA. Because you have no basis in your
tax on distributions made before you reach age distributions from that IRA generally depend on IRA, any distributions are fully taxable when re-
59 / doesn't apply to these tax-free withdraw-1 2 whether the IRA owner died before or after the ceived. See Reporting taxable distributions on
als of your contributions. However, the distribu- required beginning date for distributions. your return, later.
tion of interest or other income must be repor- More information. For more information, in- Partly taxable. If you made nondeductible
ted on Form 5329 and, unless the distribution cluding how to figure your required minimum contributions or rolled over any after-tax
qualifies as an exception to the age 59 / rule, it 1 2 distribution each year and how to figure your re- amounts to any of your traditional IRAs, you
will be subject to this tax. See Early Distribu- quired distribution if you are a beneficiary of a have a cost basis (investment in the contract)
86 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

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equal to the amount of those contributions. • Making excess contributions. • Stamps,
These nondeductible contributions aren't taxed • Taking early distributions. • Coins,
when they are distributed to you. They are a re-
turn of your investment in your IRA. • Allowing excess amounts to accumulate • Alcoholic beverages, and
Only the part of the distribution that repre- (failing to take required distributions). • Certain other tangible personal property.
sents nondeductible contributions and rolled There are penalties for overstating the
over after-tax amounts (your cost basis) is tax amount of nondeductible contributions and for Exception. Your IRA can invest in one-,
free. If nondeductible contributions have been failure to file a Form 8606, if required. one-half-, one-quarter-, or one-tenth-ounce U.S.
made or after-tax amounts have been rolled gold coins, or one-ounce silver coins minted by
over to your IRA, distributions consist partly of the Treasury Department. It can also invest in
nondeductible contributions (basis) and partly Prohibited Transactions certain platinum coins and certain gold, silver,
of deductible contributions, earnings, and gains Generally, a prohibited transaction is any im- palladium, and platinum bullion.
(if there are any). Until all of your basis has proper use of your traditional IRA by you, your
been distributed, each distribution is partly non- beneficiary, or any disqualified person. Excess Contributions
taxable and partly taxable. Disqualified persons include your fiduciary Generally, an excess contribution is the amount
and members of your family (spouse, ancestor,
Form 8606. You must complete Form 8606 lineal descendent, and any spouse of a lineal contributed to your traditional IRA(s) for the year
and attach it to your return if you receive a distri- descendent). that is more than the smaller of:
bution from a traditional IRA and have ever • The maximum deductible amount for the
made nondeductible contributions or rolled over The following are examples of prohibited
after-tax amounts to any of your traditional transactions with a traditional IRA. year (for 2023, this is $6,500 ($7,500 if you
are 50 or older)); or
IRAs. Using the form, you will figure the nontax- • Borrowing money from it; see Pub. 590-B.
able distributions for 2023 and your total IRA • Selling property to it. • Your taxable compensation for the year.
basis for 2023 and earlier years. An excess contribution could be the result of
• Using it as security for a loan. your contribution, your spouse's contribution,
Note. If you are required to file Form 8606 • Buying property for personal use (present your employer's contribution, or an improper
but you aren't required to file an income tax re- or future) with IRA funds. rollover contribution. If your employer makes
turn, you must still file Form 8606. Send it to the contributions on your behalf to a SEP IRA, see
IRS at the time and place you would otherwise Effect on an IRA account. Generally, if you or chapter 2 of Pub. 560.
file an income tax return. your beneficiary engages in a prohibited trans-
action in connection with your traditional IRA Tax on excess contributions. In general, if
Distributions reported on Form 1099-R. If account at any time during the year, the account the excess contributions for a year aren't with-
you receive a distribution from your traditional stops being an IRA as of the first day of that drawn by the date your return for the year is due
IRA, you will receive Form 1099-R, or a similar year. (including extensions), you are subject to a 6%
statement. IRA distributions are shown in boxes tax. You must pay the 6% tax each year on ex-
1 and 2a of Form 1099-R. The number or letter Effect on you or your beneficiary. If your ac- cess amounts that remain in your traditional IRA
codes in box 7 tell you what type of distribution count stops being an IRA because you or your at the end of your tax year. The tax can't be
you received from your IRA. beneficiary engaged in a prohibited transaction, more than 6% of the combined value of all your
the account is treated as distributing all its as- IRAs as of the end of your tax year. The addi-
Withholding. Federal income tax is withheld sets to you at their fair market values on the first tional tax is figured on Form 5329.
from distributions from traditional IRAs unless day of the year. If the total of those values is
you choose not to have tax withheld. See chap- more than your basis in the IRA, you will have a Excess contributions withdrawn by due
ter 4. taxable gain that is includible in your income. date of return. You won't have to pay the 6%
IRA distributions delivered outside the For information on figuring your gain and report- tax if you withdraw an excess contribution made
United States. In general, if you are a U.S. citi- ing it in income, see Are Distributions Taxable, during a tax year and you also withdraw interest
zen or resident alien and your home address is earlier. The distribution may be subject to addi- or other income earned on the excess contribu-
outside the United States or its territories, you tional taxes or penalties. tion. You must complete your withdrawal by the
date your tax return for that year is due, includ-
can't choose exemption from withholding on Taxes on prohibited transactions. If some- ing extensions.
distributions from your traditional IRA. one other than the owner or beneficiary of a tra-
Reporting taxable distributions on your re- ditional IRA engages in a prohibited transaction, How to treat withdrawn contributions.
turn. Report fully taxable distributions, includ- that person may be liable for certain taxes. In Don't include in your gross income an excess
ing early distributions, on Form 1040 or general, there is a 15% tax on the amount of the contribution that you withdraw from your tradi-
1040-SR, line 4b (no entry is required on Form prohibited transaction and a 100% additional tional IRA before your tax return is due if both
1040 or 1040-SR, line 4a). If only part of the dis- tax if the transaction isn't corrected. the following conditions are met.
tribution is taxable, enter the total amount on More information. For more information on • No deduction was allowed for the excess
Form 1040 or 1040-SR, line 4a, and the taxable prohibited transactions, see What Acts Result in contribution.
part on Form 1040 or 1040-SR, line 4b. Penalties or Additional Taxes? in chapter 1 of • You withdraw the interest or other income
Pub. 590-A. earned on the excess contribution.
What Acts Result in You can take into account any loss on the con-
Investment in Collectibles tribution while it was in the IRA when figuring
Penalties or Additional If your traditional IRA invests in collectibles, the the amount that must be withdrawn. If there was
Taxes? amount invested is considered distributed to a loss, the net income you must withdraw may
you in the year invested. You may have to pay be a negative amount.
The tax advantages of using traditional IRAs for the 10% additional tax on early distributions,
retirement savings can be offset by additional discussed later. How to treat withdrawn interest or other
taxes and penalties if you don't follow the rules. income. You must include in your gross in-
There are additions to the regular tax for us- Collectibles. These include: come the interest or other income that was
ing your IRA funds in prohibited transactions. • Artworks, earned on the excess contribution. Report it on
your return for the year in which the excess con-
activities. •
There are also additional taxes for the following Rugs, tribution was made. Your withdrawal of interest
• Investing in collectibles. • Antiques, or other income may be subject to an additional
• Having unrelated business income; see • Metals, 10% tax on early distributions, discussed later.
Beginning on or after December 29, 2022,
Pub. 590-B. • Gems, the 10% additional tax will not apply to your
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withdrawal of interest or other income, if with- Excess Contributions under What Acts Result in Note. Distributions that are timely and prop-
drawn on or before the due date (including ex- Penalties or Additional Taxes? in Pub. 590-A. erly rolled over, as discussed earlier, aren't sub-
tensions) of the income tax return. See Pub. ject to either regular income tax or the 10% ad-
590-B for more information. Early Distributions ditional tax. Certain withdrawals of excess
contributions after the due date of your return
Excess contributions withdrawn after due You must include early distributions of taxable are also tax free and therefore not subject to the
date of return. In general, you must include all amounts from your traditional IRA in your gross 10% additional tax. (See Excess contributions
distributions (withdrawals) from your traditional income. Early distributions are also subject to withdrawn after due date of return, earlier.) This
IRA in your gross income. However, if the fol- an additional 10% tax. See the discussion of also applies to transfers incident to divorce, as
lowing conditions are met, you can withdraw ex- Form 5329 under Reporting Additional Taxes, discussed earlier.
cess contributions from your IRA and not in- later, to figure and report the tax.
clude the amount withdrawn in your gross Receivership distributions. Early distribu-
income. Early distributions defined. Early distribu- tions (with or without your consent) from sav-
tions are generally amounts distributed from ings institutions placed in receivership are sub-
• Total contributions (other than rollover con- your traditional IRA account or annuity before ject to this tax unless one of the exceptions
tributions) for 2023 to your IRA weren't you are age 59 / .1 2
more than $6,500 ($7,500 if you are 50 or listed earlier applies. This is true even if the dis-
older). Age 59 / rule. 1 2 Generally, if you are under age tribution is from a receiver that is a state agency.
59 / , you must pay a 10% additional tax on the 1 2
Additional 10% tax. The additional tax on
• You didn't take a deduction for the excess distribution of any assets (money or other prop- early distributions is 10% of the amount of the
contribution being withdrawn. erty) from your traditional IRA. Distributions be- early distribution that you must include in your
The withdrawal can take place at any time, even fore you are age 59 / are called early distribu-1 2
gross income. This tax is in addition to any reg-
after the due date, including extensions, for fil- tions. ular income tax resulting from including the dis-
ing your tax return for the year. The 10% additional tax applies to the part of tribution in income.
Excess contribution deducted in an earlier the distribution that you have to include in gross
year. If you deducted an excess contribution in income. It is in addition to any regular income Nondeductible contributions. The tax on
an earlier year for which the total contributions tax on that amount. early distributions doesn't apply to the part of a
distribution that represents a return of your non-
weren't more than the maximum deductible After age 59 / and before age 72. 1 2 After deductible contributions (basis).
amount for that year (see the following table), you reach age 59 / , you can receive distribu-1 2
you can still remove the excess from your tradi- tions without having to pay the 10% additional More information. For more information on
tional IRA and not include it in your gross in- tax. Even though you can receive distributions early distributions, see What Acts Result in Pen-
come. To do this, file Form 1040-X for that year after you reach age 59 / , distributions aren't re-1 2 alties or Additional Taxes? in chapter 1 of Pub.
and don't deduct the excess contribution on the quired until you reach age 72. See When Must 590-B.
amended return. Generally, you can file an You Withdraw IRA Assets? (Required Minimum
amended return within 3 years after you filed Distributions), earlier. Excess Accumulations
your return or 2 years from the time the tax was (Insufficient Distributions)
paid, whichever is later. Exceptions. There are several exceptions to
the age 59 / rule. Even if you receive a distribu-1 2 You can't keep amounts in your traditional IRA
tion before you are age 59 / , you may not have 1 2 indefinitely. Generally, you must begin receiving
Contribution to pay the 10% additional tax if you are in one of distributions by April 1 of the year following the
limit if 50 or the following situations. year in which you reach age 72. The required
older at the
Contribution end of the • You have unreimbursed medical expenses minimum distribution for any year after the year
Year(s) limit year that are more than 7.5% of your AGI. in which you reach age 72 must be made by
December 31 of that later year.
2023 $6,500 $7,500 • The distribution is for the cost of your medi-
cal insurance due to a period of unemploy- Individuals who reach age 72 after De-
2019 through $6,000 $7,000 ment. TIP cember 31, 2022, may delay receiving
2022 their required minimum distributions
• You are totally and permanently disabled.
2013 through $5,500 $6,500 until April 1 of the year following the year in
2018 • You have been certified as having a termi- which they reach age 73.
2008 through $5,000 $6,000 nal illness.
Tax on excess. If distributions are less than
•
2012 You are the beneficiary of a deceased IRA the required minimum distribution for the year,
2006 or 2007 $4,000 $5,000 owner. you may have to pay a 25% excise tax for that
2005 $4,000 $4,500
• You are receiving distributions in the form year on the amount not distributed as required.
2002 through $3,000 $3,500 of a series of substantially equal periodic
2004 payments. The excise tax on distributions that are
TIP less than the required minimum distri-
1997 through $2,000 — • The distribution is income on a corrective bution amount is reduced to 25% for
2001
before 1997 $2,250 — distribution. tax years beginning after December 29, 2022.
• The distribution is for your qualified higher Also, there is an additional reduction to 10% for
Excess due to incorrect rollover informa- education expenses. taxpayers meeting additional requirements. See
tion. If an excess contribution in your traditional Pub. 590-B for more information.
IRA is the result of a rollover and the excess oc- • You use the distributions to buy, build, or
curred because the information the plan was re- rebuild a first home. Request to waive the tax. If the excess accu-
quired to give you was incorrect, you can with- • The distribution is due to an IRS levy of the mulation is due to reasonable error, and you
draw the excess contribution. The limits IRA or retirement plan. have taken, or are taking, steps to remedy the
insufficient distribution, you can request that the
mentioned above are increased by the amount • The distribution is a qualified reservist dis- tax be waived. If you believe you qualify for this
of the excess that is due to the incorrect infor- tribution. relief, attach a statement of explanation and
mation. You will have to amend your return for
the year in which the excess occurred to correct Most of these exceptions are explained under complete Form 5329 as instructed under
the reporting of the rollover amounts in that Early Distributions under What Acts Result in Waiver of tax for reasonable cause in the In-
year. Don't include in your gross income the Penalties or Additional Taxes? in chapter 1 of structions for Form 5329.
part of the excess contribution caused by the in- Pub. 590-B. Exemption from tax. If you are unable to take
correct information. For more information, see required distributions because you have a

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traditional IRA invested in a contract issued by You must file Form 5329 to report your ad- and your modified AGI (defined later) is less
an insurance company that is in state insurer ditional taxes. than:
delinquency proceedings, the 25% excise tax • If you rolled over part or all of a distribution • $228,000 for married filing jointly or qualify-
doesn't apply if the conditions and requirements from a qualified retirement plan, the part ing surviving spouse;
of Revenue Procedure 92-10 are satisfied. rolled over isn't subject to the tax on early $153,000 for single, head of household, or
More information. For more information on distributions. •
married filing separately and you didn't live
excess accumulations, see What Acts Result in • If you have a qualified disaster distribution. with your spouse at any time during the
Penalties or Additional Taxes? in chapter 1 of year; or
Pub. 590-B.
Roth IRAs • $10,000 for married filing separately and
you lived with your spouse at any time dur-
Reporting Additional Taxes Regardless of your age, you may be able to es- ing the year.
Generally, you must use Form 5329 to report tablish and make nondeductible contributions to
the tax on excess contributions, early distribu- a retirement plan called a Roth IRA. You may be eligible to claim a credit for
TIP contributions to your Roth IRA. For
tions, and excess accumulations. Contributions not reported. You don't report more information, see chapter 3 of Pub.
Filing a tax return. If you must file an individ- Roth IRA contributions on your return. 590-A.
ual income tax return, complete Form 5329 and
attach it to your Form 1040 or 1040-SR. Enter Is there an age limit for contributions? Con-
the total additional taxes due on Schedule 2 What Is a Roth IRA? tributions can be made to your Roth IRA regard-
(Form 1040), line 8. A Roth IRA is an individual retirement plan that, less of your age.
Not filing a tax return. If you don't have to file except as explained in this chapter, is subject to Can you contribute to a Roth IRA for your
a tax return but do have to pay one of the addi- the rules that apply to a traditional IRA (defined spouse? You can contribute to a Roth IRA for
tional taxes mentioned earlier, file the comple- earlier). It can be either an account or an annu- your spouse provided the contributions satisfy
ted Form 5329 with the IRS at the time and ity. Individual retirement accounts and annuities the Kay Bailey Hutchison Spousal IRA limit (dis-
place you would have filed your Form 1040 or are described under How Can a Traditional IRA cussed under How Much Can Be Contributed,
1040-SR. Be sure to include your address on Be Opened? in chapter 1 of Pub. 590-A. earlier, under Traditional IRAs), you file jointly,
page 1 and your signature and date on page 2. To be a Roth IRA, the account or annuity and your modified AGI is less than $228,000.
Enclose, but don't attach, a check or money or- must be designated as a Roth IRA when it is
der made payable to “United States Treasury” opened. A deemed IRA can be a Roth IRA. Be- Compensation. Compensation includes wa-
for the tax you owe, as shown on Form 5329. ginning in tax year 2023, both a SEP or SIMPLE ges, salaries, tips, professional fees, bonuses,
Enter your social security number and “2023 IRA can be designated as a Roth IRA. and other amounts received for providing per-
Form 5329” on your check or money order. Unlike a traditional IRA, you can't deduct sonal services. It also includes commissions,
contributions to a Roth IRA. But, if you satisfy self-employment income, nontaxable combat
Form 5329 not required. You don't have to the requirements, qualified distributions (dis- pay, military differential pay, taxable alimony and
use Form 5329 if any of the following situations cussed later) are tax free. You can leave separate maintenance payments, and taxable
exists. amounts in your Roth IRA as long as you live. non-tuition fellowship and stipend payments.
• Distribution code 1 (early distribution) is See What is compensation, earlier, for more
correctly shown in box 7 of all your Forms information.
1099-R. If you don't owe any other addi- When Can a Roth IRA Be Modified AGI. Your modified AGI for Roth IRA
tional tax on a distribution, multiply the tax- Opened? purposes is your AGI as shown on your return
able part of the early distribution by 10% with some adjustments. Use Worksheet 9-2 to
(0.10) and enter the result on Schedule 2 You can open a Roth IRA at any time. However, determine your modified AGI.
(Form 1040), line 8. Enter “No” to the left of the time for making contributions for any year is
the line to indicate that you don't have to limited. See When Can You Make Contributions
file Form 5329. However, if you owe this tax under Can You Contribute to a Roth IRA? next.
and also owe any other additional tax on a
distribution, don't enter this 10% additional
tax directly on your Form 1040 or 1040-SR. Can You Contribute to a
Roth IRA?
Generally, you can contribute to a Roth IRA if
you have taxable compensation (defined later)

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Worksheet 9-2.   Modified AGI for Roth IRA Purposes                                                                                            Keep for Your Records
Use this worksheet to figure your modified AGI for Roth IRA purposes.
       1.  Enter your AGI from Form 1040 or 1040-SR, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     1.   
       2.  Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth 
           IRA (included on Form 1040 or 1040-SR, line 4b) and a rollover from a qualified retirement 
           plan to a Roth IRA (included on Form 1040 or 1040-SR, line 5b) . . . . . . . . . . . . . . . . . . . . . .                          2.   
       3.  Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.   
       4.  Enter any traditional IRA deduction from Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . .                                4.   
       5.  Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . .                                    5.   
       6.  Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 . . . . . .                                        6.   
       7.  Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . .                         7.   
       8.  Enter any excludable savings bond interest from Form 8815, line 14            . . . . . . . . . . . . . . . . . .                   8.   
       9.  Enter any excluded employer-provided adoption benefits from Form 8839, line 28 . . . . . . . .                                      9.   
      10.  Add the amounts on lines 3 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            10.  
      11.  Enter:
           • $228,000 if married filing jointly or qualifying surviving spouse,
           • $10,000 if married filing separately and you lived with your 
           spouse at any time during the year, or
           • $153,000 for all others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11.  
                Is the amount on line 10 more than the amount on line 11?
                If yes, then see the Note below.
                If no, then the amount on line 10 is your modified AGI for Roth IRA purposes.
           Note. If the amount on line 10 is more than the amount on line 11 and you have other income or loss items, such as social 
           security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the 
           purpose of figuring your modified AGI for Roth IRA purposes. (If you receive social security benefits, use Worksheet 1 in 
           Appendix B of Pub. 590-A to refigure your AGI.) Then, go to line 3 above in this Worksheet 9-2 to refigure your modified AGI. If 
           you don't have other income or loss items subject to AGI-based phaseouts, your modified AGI for Roth IRA purposes is the 
           amount on line 10.
How Much Can Be Contributed?                         Roth  IRAs  and  traditional  IRAs. If  contribu-     • Your taxable compensation minus all con-
The  contribution  limit  for  Roth  IRAs  generally tions are made to both Roth IRAs and traditional        tributions (other than employer contribu-
depends  on  whether  contributions  are  made       IRAs established for your benefit, your contribu-       tions under a SEP or SIMPLE IRA plan) for 
only to Roth IRAs or to both traditional IRAs and    tion limit for Roth IRAs is generally the same as       the year to all IRAs other than Roth IRAs.
Roth IRAs.                                           your  limit  would  be  if  contributions  were  made However, if your modified AGI is above a certain 
                                                     only to Roth IRAs, but then reduced by all con-       amount, your contribution limit may be reduced, 
Roth IRAs only. If contributions are made only       tributions for the year to all IRAs other than Roth   as  explained  next  under               Contribution  limit  re-
to Roth IRAs, your contribution limit is generally   IRAs.  Employer  contributions  under  a  SEP  or     duced.
the lesser of the following amounts.                 SIMPLE IRA plan don't affect this limit.
•  $6,500 ($7,500 if you are 50 or older in          This  means  that  your  contribution  limit  is      Contribution  limit  reduced.            If  your  modified 
   2023).                                            generally the lesser of the following amounts.        AGI  is  above  a  certain  amount,  your  contribu-
                                                                                                           tion limit is gradually reduced. Use Table 9-3 to 
•  Your taxable compensation.                        • $6,500 ($7,500 if you are 50 or older in            determine if this reduction applies to you.
                                                       2023) minus all contributions (other than 
However, if your modified AGI is above a certain       employer contributions under a SEP or 
amount, your contribution limit may be reduced,        SIMPLE IRA plan) for the year to all IRAs 
as  explained  later  under Contribution  limit  re-   other than Roth IRAs.
duced.

90                                          Chapter 9  Individual Retirement Arrangements (IRAs)                                                    Publication 17 (2023)

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Table 9-3. Effect of Modified AGI on Roth IRA Contribution
This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI.

IF you have taxable compensation and AND your modified
your filing status is... AGI is... THEN...
Married filing jointly or less than $218,000 you can contribute up to $6,500 ($7,500 if you are 50 or
Qualifying surviving spouse older in 2023).
at least $218,000 the amount you can contribute is reduced as explained
but less than $228,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$228,000 or more you can't contribute to a Roth IRA.
Married filing separately and you lived zero (-0-) you can contribute up to $6,500 ($7,500 if you are 50 or
with your spouse at any time during the year older in 2023).
more than zero (-0-) the amount you can contribute is reduced as explained
but less than $10,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$10,000 or more you can't contribute to a Roth IRA.
Single, Head of household, or Married less than $138,000 you can contribute up to $6,500 ($7,500 if you are 50 or
filing separately and you didn't live with older in 2023).
your spouse at any time during the year at least $138,000 the amount you can contribute is reduced as explained
but less than $153,000 under Contribution limit reduced in chapter 2 of Pub.
590-A.
$153,000 or more you can't contribute to a Roth IRA.

Figuring the reduction. If the amount you Withdrawal of excess contributions. For Conversion methods. You can convert
can contribute to your Roth IRA is reduced, see purposes of determining excess contributions, amounts from a traditional IRA to a Roth IRA in
Worksheet 2-2 under Can You Contribute to a any contribution that is withdrawn on or before any of the following ways.
Roth IRA? in chapter 2 of Pub. 590-A for how to the due date (including extensions) for filing • Rollover. You can receive a distribution
figure the reduction. your tax return for the year is treated as an from a traditional IRA and roll it over (con-
amount not contributed. This treatment applies tribute it) to a Roth IRA within 60 days after
When Can You Make only if any earnings on the contributions are the distribution.
also withdrawn. The earnings are considered to
Contributions? have been earned and received in the year the • Trustee-to-trustee transfer. You can di-
You can make contributions to a Roth IRA for a excess contribution was made. rect the trustee of the traditional IRA to
year at any time during the year or by the due transfer an amount from the traditional IRA
date of your return for that year (not including Applying excess contributions. If contribu- to the trustee of the Roth IRA.
extensions). tions to your Roth IRA for a year were more than
the limit, you can apply the excess contribution • Same trustee transfer. If the trustee of
You can make contributions for 2023 by in one year to a later year if the contributions for the traditional IRA also maintains the Roth
TIP the due date (not including extensions) that later year are less than the maximum al- IRA, you can direct the trustee to transfer
for filing your 2023 tax return. lowed for that year. an amount from the traditional IRA to the
Roth IRA.
What if You Contribute Too Much? Can You Move Amounts Same trustee. Conversions made with the
same trustee can be made by redesignating the
A 6% excise tax applies to any excess contribu- Into a Roth IRA? traditional IRA as a Roth IRA, rather than open-
tion to a Roth IRA. ing a new account or issuing a new contract.
You may be able to convert amounts from either
Excess contributions. These are the contri- a traditional, SEP, or SIMPLE IRA into a Roth Rollover from a qualified retirement plan
butions to your Roth IRAs for a year that equal IRA. You may be able to roll amounts over from into a Roth IRA. You can roll over into a Roth
the total of: a qualified retirement plan to a Roth IRA. You IRA all or part of an eligible rollover distribution
1. Amounts contributed for the tax year to may be able to recharacterize contributions you receive from your (or your deceased spou-
your Roth IRAs (other than amounts prop- made to one IRA as having been made directly se's):
erly and timely rolled over from a Roth IRA to a different IRA. You can roll amounts over • Employer's qualified pension, profit-shar-
or properly converted from a traditional from a designated Roth account or from one ing, or stock bonus plan;
IRA or rolled over from a qualified retire- Roth IRA to another Roth IRA.
ment plan, as described later) that are • Annuity plan;
more than your contribution limit for the Conversions • Tax-sheltered annuity plan (section 403(b)
year; plus You can convert a traditional IRA to a Roth IRA. plan); or
2. Any excess contributions for the preceding The conversion is treated as a rollover, regard- • Governmental deferred compensation plan
year, reduced by the total of: less of the conversion method used. Most of the (section 457 plan).
a. Any distributions out of your Roth rules for rollovers, described earlier under Roll- Any amount rolled over is subject to the same
IRAs for the year, plus over From One IRA Into Another under Tradi- rules as those for converting a traditional IRA
tional IRAs, apply to these rollovers. However, into a Roth IRA. Also, the rollover contribution
b. Your contribution limit for the year mi- the 1-year waiting period doesn't apply. must meet the rollover requirements that apply
nus your contributions to all your IRAs to the specific type of retirement plan.
for the year.

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Income. You must include in your gross in- only be made to another designated Roth ac- tion from a Roth IRA, you may have to pay the
come distributions from a qualified retirement count or to a Roth IRA. For more information 10% additional tax on early distributions. You
plan that you would have had to include in in- about designated Roth accounts, see Designa- must generally pay the 10% additional tax on
come if you hadn't rolled them over into a Roth ted Roth accounts under Rollovers in Pub. 575. any amount attributable to the part of the
IRA. You don't include in gross income any part amount converted or rolled over (the conversion
of a distribution from a qualified retirement plan or rollover contribution) that you had to include
that is a return of basis (after-tax contributions) Are Distributions Taxable? in income. A separate 5-year period applies to
to the plan that was taxable to you when paid. You don't include in your gross income qualified each conversion and rollover. See Ordering
These amounts are normally included in income distributions or distributions that are a return of rules for distributions, later, to determine the
on your return for the year of the rollover from your regular contributions from your Roth amount, if any, of the distribution that is attribut-
the qualified employer plan to a Roth IRA. IRA(s). You also don't include distributions from able to the part of the conversion or rollover
If you must include any amount in your your Roth IRA that you roll over tax free into an- contribution that you had to include in income.
other Roth IRA. You may have to include part of Additional tax on other early distributions.
CAUTION crease your withholding or make esti-
! gross income, you may have to in- other distributions in your income. See Ordering Unless an exception applies, you must pay the
mated tax payments. See Pub. 505, Tax With- rules for distributions, later. 10% additional tax on the taxable part of any
holding and Estimated Tax. What are qualified distributions? A qualified distributions that aren't qualified distributions.
For more information, see Rollover From distribution is any payment or distribution from See Pub. 590-B for more information.
Employer's Plan Into a Roth IRA in chapter 2 of your Roth IRA that meets the following require- Ordering rules for distributions. If you re-
Pub. 590-A. ments. ceive a distribution from your Roth IRA that isn't
Converting from a SIMPLE IRA. Generally, 1. It is made after the 5-year period begin- a qualified distribution, part of it may be taxable.
you can convert an amount in your SIMPLE IRA ning with the first tax year for which a con- There is a set order in which contributions (in-
to a Roth IRA under the same rules explained tribution was made to a Roth IRA set up cluding conversion contributions and rollover
earlier under Converting From Any Traditional for your benefit. contributions from qualified retirement plans)
and earnings are considered to be distributed
IRA to a Roth IRA under Traditional IRAs. 2. The payment or distribution is: from your Roth IRA. Regular contributions are
However, you can't convert any amount dis- distributed first. See Ordering Rules for Distribu-
tributed from the SIMPLE IRA plan during the a. Made on or after the date you reach
2-year period beginning on the date you first age 59 / ,1 2 tions under Are Distributions Taxable? in chap-
ter 2 of Pub. 590-B for more information.
participated in any SIMPLE IRA plan main- b. Made because you are disabled,
tained by your employer. Must you withdraw or use Roth IRA assets?
c. Made to a beneficiary or to your es- You aren't required to take distributions from
More information. For more detailed informa- tate after your death, or your Roth IRA at any age. The minimum distri-
tion on conversions, see Can You Move bution rules that apply to traditional IRAs don't
Amounts Into a Roth IRA? in chapter 2 of Pub. d. To pay up to $10,000 (lifetime limit) of
590-A. certain qualified first-time homebuyer apply to Roth IRAs while the owner is alive.
amounts. See First home under What However, after the death of a Roth IRA owner,
Acts Result in Penalties or Additional certain minimum distribution rules that apply to
Rollover From a Roth IRA Taxes? in chapter 1 of Pub. 590-B for traditional IRAs also apply to Roth IRAs.
You can withdraw, tax free, all or part of the as- more information. More information. For more detailed informa-
sets from one Roth IRA if you contribute them tion on Roth IRAs, see chapter 2 of Pub. 590-A
within 60 days to another Roth IRA. Most of the Additional tax on distributions of conver-
rules for rollovers, explained earlier under Roll- sion and certain rollover contributions and Pub. 590-B.
over From One IRA Into Another under Tradi- within 5-year period. If, within the 5-year pe-
tional IRAs, apply to these rollovers. riod starting with the first day of your tax year in
which you convert an amount from a traditional
Rollover from designated Roth account. A IRA or roll over an amount from a qualified re-
rollover from a designated Roth account can tirement plan to a Roth IRA, you take a distribu-

92 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

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Part Three.

After you have figured your adjusted gross income, you are ready to
Standard subtract the deductions used to figure taxable income. You can subtract
either the standard deduction or itemized deductions, and, if you qualify,
Deduction, the qualified business income deduction. Itemized deductions are
deductions for certain expenses that are listed on Schedule A (Form 1040).
Itemized The three chapters in this part discuss the standard deduction and certain
itemized deductions. See chapter 10 for the factors to consider when
Deductions, and deciding whether to take the standard deduction or itemized deductions.
The Form 1040 and Form 1040-SR schedules that are discussed in these
Other chapters are:
Deductions • Schedule 1, Additional Income and Adjustments to Income;
• Schedule 2 (Part II), Other Taxes; and
• Schedule 3 (Part I), Nonrefundable Credits.

You benefit from the standard deduc- 970 970 Tax Benefits for Education
TIP tion if your standard deduction is more
than the total of your allowable itemized Form (and Instructions)
10. deductions.
Schedule A (Form 1040) Schedule A (Form 1040) Itemized
Persons not eligible for the standard de- Deductions
duction. Your standard deduction is zero and
Standard you should itemize any deductions you have if:
• Your filing status is married filing sepa- Standard Deduction
Deduction rately, and your spouse itemizes deduc-
tions on their return; Amount
• You are filing a tax return for a short tax The standard deduction amount depends on
What's New year because of a change in your annual your filing status, whether you are 65 or older or
accounting period; or blind, and whether another taxpayer can claim
Standard deduction increased. The stand- • You are a nonresident or dual-status alien you as a dependent. Generally, the standard
ard deduction for taxpayers who don't itemize during the year. You are considered a deduction amounts are adjusted each year for
their deductions on Schedule A (Form 1040) dual-status alien if you were both a nonres- inflation. The standard deduction amounts for
has increased. The amount of your standard ident and resident alien during the year. most people are shown in Table 10-1.
deduction depends on your filing status and Decedent's final return. The standard deduc-
other factors. Use the 2023 Standard Deduction If you are a nonresident alien who is married
Tables near the end of this chapter to figure to a U.S. citizen or resident alien at the end of tion for a decedent's final tax return is the same
your standard deduction. the year, you can choose to be treated as a U.S. as it would have been had the decedent contin-
resident. (See Pub. 519.) If you make this ued to live. However, if the decedent wasn't 65
choice, you can take the standard deduction. or older at the time of death, the higher stand-
ard deduction for age can't be claimed.
Introduction If you can be claimed as a dependent
on another person’s return (such as
This chapter discusses the following topics. CAUTION! your parents’ return), your standard de- Higher Standard
• How to figure the amount of your standard duction may be limited. See Standard Deduc- Deduction for Age (65 or
deduction. tion for Dependents, later.
Older)
• The standard deduction for dependents.
• Who should itemize deductions. Useful Items If you are age 65 or older on the last day of the
You may want to see: year and don't itemize deductions, you are enti-
Most taxpayers have a choice of either tak- tled to a higher standard deduction. You are
ing a standard deduction or itemizing their de- Publication considered 65 on the day before your 65th birth-
ductions. If you have a choice, you can use the day. Therefore, you can take a higher standard
method that gives you the lower tax. 501 501 Dependents, Standard Deduction, deduction for 2023 if you were born before Jan-
The standard deduction is a dollar amount and Filing Information uary 2, 1959.
that reduces your taxable income. It is a benefit Use Table 10-2 to figure the standard de-
that eliminates the need for many taxpayers to 502 502 Medical and Dental Expenses duction amount.
itemize actual deductions, such as medical ex- 526 526 Charitable Contributions Death of a taxpayer. If you are preparing a re-
penses, charitable contributions, and taxes, on
Schedule A (Form 1040). The standard deduc- 530 530 Tax Information for Homeowners turn for someone who died in 2023, read this
tion is higher for taxpayers who: before using Table 10-2 or Table 10-3. Consider
547
• Are 65 or older, or 547 Casualties, Disasters, and Thefts the taxpayer to be 65 or older at the end of 2023
only if they were 65 or older at the time of death.
• Are blind. 550 550 Investment Income and Expenses Even if the taxpayer was born before January 2,
936 936 Home Mortgage Interest Deduction 1959, they are not considered 65 or older at the

Publication 17 (2023) Chapter 10 Standard Deduction 93

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end of 2023 unless they were 65 or older at the increased standard deduction and how to report your parents' 2023 tax return. You are married
time of death. it on Form 1040 or 1040-SR. filing a separate return. Your spouse doesn't
A person is considered to reach age 65 on itemize deductions. You have $1,500 in interest
the day before their 65th birthday. income and wages of $3,800 and no itemized
Examples deductions. You find your standard deduction
by using Table 10-3. You enter earned income,
Higher Standard The following examples illustrate how to deter- $3,800, on line 1. You add lines 1 and 2 and en-
mine your standard deduction using Tables ter $4,200 ($3,800 + $400) on line 3. On line 5,
Deduction for Blindness 10-1 and 10-2. you enter $4,200, the larger of lines 3 and 4.
If you are blind on the last day of the year and Example 1. Hunter, 46, and Avery, 33, are Because you are married filing a separate re-
you don't itemize deductions, you are entitled to filing a joint return for 2023. Neither is blind, and turn, you enter $13,850 on line 6. On line 7a,
a higher standard deduction. neither can be claimed as a dependent. They you enter $4,200 as the standard deduction
Not totally blind. If you aren't totally blind, you decide not to itemize their deductions. They use amount because it is smaller than $13,850, the
must get a certified statement from an eye doc- Table 10-1. Their standard deduction is amount on line 6.
tor (ophthalmologist or optometrist) that: $27,700. Example 3. You are single and can be
• You can't see better than 20/200 in the bet- Example 2. The facts are the same as in claimed as a dependent on your parents' 2023
ter eye with glasses or contact lenses, or Example 1, except that Hunter is blind at the tax return. You are 18 years old and blind and
• Your field of vision is 20 degrees or less. end of 2023. Hunter and Avery use Table 10-2. have interest income of $1,300, wages of
Their standard deduction is $29,200. $2,900, and no itemized deductions. You use
If your eye condition isn't likely to improve Table 10-3 to find the standard deduction
beyond these limits, the statement should in- Example 3. Dylan and Dru are filing a joint amount. You enter wages of $2,900 on line 1,
clude this fact. Keep the statement in your re- return for 2023. Both are over age 65. Neither is and add lines 1 and 2 and enter $3,300 ($2,900
cords. blind, and neither can be claimed as a depend- + $400) on line 3. On line 5, you enter $3,300,
If your vision can be corrected beyond these ent. If they don't itemize deductions, they use the larger of lines 3 and 4. Because you are sin-
limits only by contact lenses that you can wear Table 10-2. Their standard deduction is gle, you enter $13,850 on line 6 and $3,300 on
only briefly because of pain, infection, or ulcers, $30,700. line 7a. This is the smaller of the amounts on
you can take the higher standard deduction for lines 5 and 6. Because you checked one box in
blindness if you otherwise qualify. the top part of the worksheet, you enter $1,850
Standard Deduction for on line 7b, then add the amounts on lines 7a
and 7b and enter the standard deduction
Spouse 65 or Older or Dependents amount of $5,150 ($3,300 + $1,850) on line 7c.
Blind The standard deduction for an individual who Example 4. You are 18 years old and single
can be claimed as a dependent on another per- and can be claimed as a dependent on your pa-
You can take the higher standard deduction if son's tax return is generally limited to the rents’ 2023 tax return. You have wages of
your spouse is age 65 or older or blind and: greater of: $7,000, interest income of $500, a business
• You file a joint return, or • $1,250, or loss of $3,000, and no itemized deductions. You
• You file a separate return and your spouse • The individual's earned income for the year use Table 10-3 to figure the standard deduction
had no gross income and can't be claimed plus $400 (but not more than the regular amount. You enter $4,000 ($7,000 − $3,000) on
as a dependent by another taxpayer. standard deduction amount, generally line 1, and add lines 1 and 2 and enter $4,400
Death of a spouse. If your spouse died in $13,850). ($4,000 + $400) on line 3. On line 5, you enter
$4,400, the larger of lines 3 and 4, and, be-
2023 before reaching age 65, you can't take a However, if the individual is 65 or older or cause you are single, $13,850 on line 6. On
higher standard deduction because of your blind, the standard deduction may be higher. line 7a, you enter $4,400 as the standard de-
spouse. Even if your spouse was born before duction amount because it is smaller than
January 2, 1959, your spouse isn't considered If you (or your spouse, if filing jointly) can be $13,850, the amount on line 6.
65 or older at the end of 2023 unless your claimed as a dependent on someone else's re-
spouse was 65 or older at the time of death. turn, use Table 10-3 to determine your standard
A person is considered to reach age 65 on deduction. Who Should Itemize
the day before their 65th birthday.
Earned income defined. Earned income is You should itemize deductions if your total de-
Example. Your spouse was born on Febru- salaries, wages, tips, professional fees, and ductions are more than your standard deduction
ary 14, 1958, and died on February 13, 2023. other amounts received as pay for work you ac- amount. Also, you should itemize if you don't
Your spouse is considered age 65 at the time of tually perform. qualify for the standard deduction, as discussed
death. However, if your spouse died on Febru- For purposes of the standard deduction, earlier under Persons not eligible for the stand-
ary 12, 2023, your spouse isn't considered age earned income also includes any part of a taxa- ard deduction.
65 at the time of death and isn't 65 or older at ble scholarship or fellowship grant. See chap- You should first figure your itemized deduc-
the end of 2023. ter 1 of Pub. 970 for more information on what tions and compare that amount to your standard
qualifies as a scholarship or fellowship grant.
You can't claim the higher standard de- deduction to make sure you are using the
method that gives you the greater benefit.
! duction for an individual other than Example 1. You are 16 years old and sin-
CAUTION yourself and your spouse. gle. Your parents can claim you as a dependent When to itemize. You may benefit from
on their 2023 tax return. You have interest in- itemizing your deductions on Schedule A (Form
come of $780 and wages of $150. You have no 1040) if you:
Higher Standard itemized deductions and use Table 10-3 to find • Don't qualify for the standard deduction,
Deduction for Net Disaster your standard deduction. You enter $150
(earned income) on line 1, $550 ($150 + $400) • Had large uninsured medical and dental
Loss on line 3, $1,250 (the larger of $550 and expenses during the year,
$1,250) on line 5, and $13,850 on line 6. Your • Paid interest and taxes on your home,
Your standard deduction may be increased by standard deduction, on line 7a, is $1,250 (the
any net qualified disaster loss. smaller of $1,250 and $13,850). • Had large uninsured casualty or theft los-
See the Instructions for Form 1040 and the ses,
Instructions for Schedule A (Form 1040) for Example 2. You are a 22-year-old college • Made large contributions to qualified chari-
more information on how to figure your student and can be claimed as a dependent on ties, or
94 Chapter 10 Standard Deduction Publication 17 (2023)

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• Have total itemized deductions that are              turn rather than taking the standard deduction.          Married  persons  who  filed  separate  re-
  more than the standard deduction to which            You may want to do this if, for example, the tax         turns. You  can  change  methods  of  taking  de-
  you are otherwise entitled.                          benefit  of  itemizing  your  deductions  on  your       ductions only if you and your spouse both make 
These  deductions  are  explained  in chapter  11      state  tax  return  is  greater  than  the  tax  benefit the same changes. Both of you must file a con-
and  in  the  publications  listed  under Useful       you lose on your federal return by not taking the        sent to assessment for any additional tax either 
Items, earlier.                                        standard deduction. To make this election, you           one may owe as a result of the change.
If  you  decide  to  itemize  your  deductions,        must check the box on line 18 of Schedule A.             You  and  your  spouse  can  use  the  method 
                                                                                                                that gives you the lower total tax, even though 
complete Schedule A and attach it to your Form         Changing your mind. If you don't itemize your            one  of  you  may  pay  more  tax  than  you  would 
1040  or  1040-SR.  Enter  the  amount  from           deductions and later find that you should have           have paid by using the other method. You both 
Schedule A, line 17, on Form 1040 or 1040-SR,          itemized—or if you itemize your deductions and           must use the same method of claiming deduc-
line 12.                                               later find you shouldn't have—you can change             tions.  If  one  itemizes  deductions,  the  other 
Electing  to  itemize  for  state  tax  or  other      your  return  by  filing  Form  1040-X,  Amended         should  itemize  because  they  won't  qualify  for 
purposes. Even  if  your  itemized  deductions         U.S. Individual Income Tax Return. See Amen-             the standard deduction. See   Persons not eligi-
are less than your standard deduction, you can         ded Returns and Claims for Refund in chapter 1           ble for the standard deduction, earlier.
elect  to  itemize  deductions  on  your  federal  re- for more information on amended returns.

Publication 17 (2023)                                  Chapter 10 Standard Deduction                                                                    95

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2023 Standard Deduction Tables
If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you can't take the standard deduction
CAUTION! even if you were born before January 2, 1959, or are blind.

Table 10-1. Standard Deduction Chart for Most People*

IF your filing status is... THEN your standard deduction is...
Single or Married filing separately $13,850
Married filing jointly or Qualifying surviving spouse 27,700
Head of household 20,800
* Don't use this chart if you were born before January 2, 1959, are blind, or if someone else can claim you (or your spouse, if filing jointly) as a dependent. Use Table 10-2 or
10-3 instead.
Table 10-2. Standard Deduction Chart for People Born Before January 2, 1959, or Who Are Blind*
Check the correct number of boxes below. Then go to the chart.
You: Born before January 2, 1959 Blind
Your spouse: Born before January 2, 1959 Blind
Total number of boxes checked
IF AND THEN
your filing status is... the number in the box above is... your standard deduction is...
Single 1 $15,700
2 17,550
Married filing jointly 1 $29,200
2 30,700
3 32,200
4 33,700
Qualifying surviving spouse 1 $29,200
2 30,700
Married filing 1 $15,350
separately** 2 16,850
3 18,350
4 19,850
Head of household 1 $22,650
2 24,500
* If someone else can claim you (or your spouse, if filing jointly) as a dependent, use Table 10-3 instead.
** You can check the boxes for Your Spouse if your filing status is married filing separately and your spouse had no income, isn’t filing a return, and can’t be claimed as a
dependent on another person’s return.
Table 10-3. Standard Deduction Worksheet for Dependents
Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent.
Check the correct number of boxes below. Then go to the worksheet.
You: Born before January 2, 1959 Blind
Your spouse: Born before January 2, 1959 Blind
Total number of boxes checked
1. Enter your earned income (defined below). If none, enter -0-. 1.
2. Additional amount. 2. $400
3. Add lines 1 and 2. 3.
4. Minimum standard deduction. 4. $1,250
5. Enter the larger of line 3 or line 4. 5.
6. Enter the amount shown below for your filing status.
• Single or Married filing separately—$13,850 6.
• Married filing jointly—$27,700
• Head of household—$20,800
7. Standard deduction.
a. Enter the smaller of line 5 or line 6. If born after January 1, 1959, and not blind, stop here. This is your
standard deduction. Otherwise, go on to line 7b. 7a.
b. If born before January 2, 1959, or blind, multiply $1,850 ($1,500 if married) by the number in the box above. 7b.
c. Add lines 7a and 7b. This is your standard deduction for 2023. 7c.
Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any
taxable scholarship or fellowship grant.

96 Chapter 10 Standard Deduction Publication 17 (2023)

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                                                        Useful Items                                                                                                                                                    contributions to state benefit funds) and foreign 
                                                        You may want to see:                                                                                                                                            income taxes.

                                                        Publication                                                                                                                                                     State and Local Income 
                                                            502 502 Medical and Dental Expenses                                                                                                                         Taxes
11.                                                         503 503 Child and Dependent Care Expenses
                                                                                                                                                                                                                        You can deduct state and local income taxes.
                                                            504 504 Divorced or Separated Individuals
                                                                                                                                                                                                                        Exception.   You can’t deduct state and local in-
                                                            514 514 Foreign Tax Credit for Individuals                                                                                                                  come taxes you pay on income that is exempt 
Taxes                                                       525 525 Taxable and Nontaxable Income                                                                                                                       from federal income tax, unless the exempt in-
                                                                                                                                                                                                                        come is interest income. For example, you can’t 
                                                            530 530 Tax Information for Homeowners                                                                                                                      deduct the part of a state's income tax that is on 
                                                                                                                                                                                                                        a  cost-of-living  allowance  exempt  from  federal 
Reminders                                               Form (and Instructions)                                                                                                                                         income tax.
Limitation on deduction for state and local                 Schedule A (Form 1040)                                                       Schedule A (Form 1040) Itemized 
taxes.  The Tax Cuts and Jobs Act provided for                  Deductions                                                                                                                                              What To Deduct
a temporary limitation on the deduction for state           Schedule C (Form 1040)                                                                              Schedule C (Form 1040) Profit or Loss                   Your deduction may be for withheld taxes, esti-
and local taxes. See Limitation on deduction for                From Business (Sole Proprietorship)                                                                                                                     mated tax payments, or other tax payments as 
state and local taxes, later.                                                                                                                                                                                           follows.
No deduction for foreign taxes paid for real                Schedule E (Form 1040)                                Schedule E (Form 1040) Supplemental 
estate.  You can no longer deduct foreign taxes                 Income and Loss                                                                                                                                         Withheld taxes. You can deduct state and lo-
you paid on real estate.                                    Schedule F (Form 1040)         Schedule F (Form 1040) Profit or Loss                                                                                        cal  income  taxes  withheld  from  your  salary  in 
                                                                From Farming                                                                                                                                            the  year  they  are  withheld.  Your  Form(s)  W-2 
                                                                                                                                                                                                                        will show these amounts. Forms W-2G, 1099-B, 
                                                                                                                                                                                       Schedule SE (Form 1040) 
Introduction                                                Schedule SE (Form 1040)                                                                                                                                     1099-DIV,    1099-G, 1099-K, 1099-MISC, 
                                                                Self-Employment Tax                                                                                                                                     1099-NEC,  1099-OID,  and  1099-R  may  also 
This chapter discusses which taxes you can de-                                                                                                                                                                          show state and local income taxes withheld.
duct  if  you  itemize  deductions  on  Schedule  A         1116    1116 Foreign Tax Credit
(Form  1040).  It  also  explains  which  taxes  you    For these and other useful items, go to IRS.gov/                                                                                                                Estimated tax payments.      You can deduct es-
can  deduct  on  other  schedules  or  forms  and       Forms.                                                                                                                                                          timated tax payments you made during the year 
which taxes you can’t deduct.                                                                                                                                                                                           to  a  state  or  local  government.  However,  you 
This chapter covers the following topics.                                                                                                                                                                               must  have  a  reasonable  basis  for  making  the 
• Income taxes (federal, state, local, and for-         Tests To Deduct                                                                                                                                                 estimated tax payments. Any estimated state or 
                                                                                                                                                                                                                        local  tax  payments  that  aren’t  made  in  good 
  eign).                                                Any Tax                                                                                                                                                         faith at the time of payment aren’t deductible.
• General sales taxes (state and local).
                                                        The following two tests must be met for you to                                                                                                                  Example.     You made an estimated state in-
• Real estate taxes (state, local, and for-             deduct any tax.                                                                                                                                                 come  tax  payment.  However,  the  estimate  of 
  eign).
                                                        • The tax must be imposed on you.                                                                                                                               your state tax liability shows that you will get a 
• Personal property taxes (state and local).                                                                                                                                                                            refund of the full amount of your estimated pay-
                                                        • You must pay the tax during your tax year.
• Taxes and fees you can’t deduct.                                                                                                                                                                                      ment.  You  had  no  reasonable  basis  to  believe 
                                                        The  tax  must  be  imposed  on  you.                                                                                                                  In  gen- you had any additional liability for state income 
Use      Table  11-1  as  a  guide  to  determine       eral,  you  can  deduct  only  taxes  imposed  on                                                                                                               taxes  and  you  can’t  deduct  the  estimated  tax 
which taxes you can deduct.                             you.                                                                                                                                                            payment.
The  end  of  the  chapter  contains  a  section 
that explains which forms you use to deduct dif-        Generally,  you  can  deduct  property  taxes                                                                                                                   Refund applied to taxes.     You can deduct any 
ferent types of taxes.                                  only if you are an owner of the property. If your                                                                                                               part  of  a  refund  of  prior-year  state  or  local  in-
                                                        spouse owns the property and pays the real es-                                                                                                                  come taxes that you chose to have credited to 
Business taxes. You can deduct certain taxes            tate  taxes,  the  taxes  are  deductible  on  your                                                                                                             your  2023  estimated  state  or  local  income 
only if they are ordinary and necessary expen-          spouse's separate return or on your joint return.                                                                                                               taxes.
ses of your trade or business or of producing in-
come. For information on these taxes, see Busi-         You must pay the tax during your tax year.                                                                                                                      Don’t reduce your deduction by either of the 
ness Expenses in Chapter 8 of Pub. 334.                 If you are a cash basis taxpayer, you can deduct                                                                                                                following items.
                                                        only  those  taxes  you  actually  paid  during  your 
State or local taxes.  These are taxes imposed          tax year. If you pay your taxes by check and the                                                                                                                • Any state or local income tax refund (or 
                                                                                                                                                                                                                          credit) you expect to receive for 2023.
by the 50 states, U.S. territories, or any of their     check  is  honored  by  your  financial  institution, 
political subdivisions (such as a county or city),      the day you mail or deliver the check is the date                                                                                                               • Any refund of (or credit for) prior-year state 
or by the District of Columbia.                         of payment. If you use a pay-by-phone account                                                                                                                     and local income taxes you actually re-
Indian  tribal  government.     An  Indian  tribal      (such as a credit card or electronic funds with-                                                                                                                  ceived in 2023.
government recognized by the Secretary of the           drawal), the date reported on the statement of                                                                                                                  However, part or all of this refund (or credit) 
Treasury as performing substantial government           the financial institution showing when payment                                                                                                                  may be taxable. See  Refund (or credit) of state 
functions will be treated as a state for purposes       was made is the date of payment. If you contest                                                                                                                 or local income taxes, later.
of claiming a deduction for taxes. Income taxes,        a tax liability and are a cash basis taxpayer, you 
real  estate  taxes,  and  personal  property  taxes    can deduct the tax only in the year you actually                                                                                                                Separate  federal  returns.  If  you  and  your 
imposed by that Indian tribal government (or by         pay  it  (or  transfer  money  or  other  property  to                                                                                                          spouse file separate state, local, and federal in-
any of its subdivisions that are treated as politi-     provide  for  satisfaction  of  the  contested  liabil-                                                                                                         come  tax  returns,  each  of  you  can  deduct  on 
cal subdivisions of a state) are deductible.            ity). See Pub. 538 for details.                                                                                                                                 your federal return only the amount of your own 
                                                        If you use an accrual method of accounting,                                                                                                                     state and local income tax that you paid during 
General  sales  taxes.   These  are  taxes  im-         see Pub. 538 for more information.                                                                                                                              the tax year.
posed  at  one  rate  on  retail  sales  of  a  broad 
range of classes of items.                                                                                                                                                                                              Joint  state  and  local  returns. If  you  and 
                                                        Income Taxes                                                                                                                                                    your spouse file joint state and local returns and 
Foreign taxes. These are taxes imposed by a                                                                                                                                                                             separate  federal  returns,  each  of  you  can  de-
foreign  country  or  any  of  its  political  subdivi- This section discusses the deductibility of state                                                                                                               duct  on  your  separate  federal  return  a  part  of 
sions.                                                  and  local  income  taxes  (including  employee                                                                                                                 the state and local income taxes paid during the 
Publication 17 (2023)                                                    Chapter 11 Taxes                                                                                                                                                                              97

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tax year. You can deduct only the amount of the can’t take a deduction or credit for foreign in- • Nontaxable part of IRA, pension, or annuity
total taxes that is proportionate to your gross in- come taxes paid on income that is exempt from distributions, excluding rollovers.
come compared to the combined gross income U.S. tax under the foreign earned income exclu- • Public assistance payments.
of you and your spouse. However, you can’t de- sion or the foreign housing exclusion. For infor-
duct more than the amount you actually paid mation on these exclusions, see Pub. 54, Tax If you lived in different states during the
during the year. You can avoid this calculation if Guide for U.S. Citizens and Resident Aliens same tax year, you must prorate your applicable
you and your spouse are jointly and individually Abroad. For information on the foreign tax table amount for each state based on the days
liable for the full amount of the state and local credit, see Pub. 514. you lived in each state. See the instructions for
income taxes. If so, you and your spouse can Schedule A (Form 1040), line 5a, for details.
deduct on your separate federal returns the
amount you each actually paid. State and Local
State and Local Real
Joint federal return. If you file a joint federal General Sales Taxes
return, you can deduct the state and local in- Estate Taxes
come taxes both of you paid. You can elect to deduct state and local general
sales taxes, instead of state and local income Deductible real estate taxes are any state and
Contributions to state benefit funds. As an taxes, as an itemized deduction on Schedule A local taxes on real property levied for the gen-
employee, you can deduct mandatory contribu- (Form 1040), line 5a. You can use either your eral public welfare. You can deduct these taxes
tions to state benefit funds withheld from your actual expenses or the state and local sales tax only if they are assessed uniformly against all
wages that provide protection against loss of tables to figure your sales tax deduction. property under the jurisdiction of the taxing au-
wages. For example, certain states require em- thority. The proceeds must be for general com-
ployees to make contributions to state funds Actual expenses. Generally, you can deduct munity or governmental purposes and not be a
providing disability or unemployment insurance the actual state and local general sales taxes payment for a special privilege granted or serv-
benefits. Mandatory payments made to the fol- (including compensating use taxes) if the tax ice rendered to you.
lowing state benefit funds are deductible as rate was the same as the general sales tax rate.
state income taxes on Schedule A (Form 1040), Food, clothing, and medical supplies. Deductible real estate taxes generally don’t
line 5a. Sales taxes on food, clothing, and medical sup- include taxes charged for local benefits and im-
• Alaska Unemployment Compensation plies are deductible as a general sales tax even provements that increase the value of the prop-
Fund. if the tax rate was less than the general sales erty. They also don’t include itemized charges
tax rate. for services (such as trash collection) assessed
• California Nonoccupational Disability Ben- against specific property or certain people, even
efit Fund. Motor vehicles. Sales taxes on motor vehi- if the charge is paid to the taxing authority. For
• New Jersey Nonoccupational Disability cles are deductible as a general sales tax even more information about taxes and charges that
Benefit Fund. if the tax rate was less than the general sales aren’t deductible, see Real Estate-Related
tax rate. However, if you paid sales tax on a mo- Items You Can’t Deduct, later.
• New Jersey Unemployment Compensation tor vehicle at a rate higher than the general Tenant-shareholders in a cooperative hous-
Fund. sales tax, you can deduct only the amount of ing corporation. Generally, if you are a ten-
• New York Nonoccupational Disability Ben- the tax that you would have paid at the general ant-stockholder in a cooperative housing corpo-
efit Fund. sales tax rate on that vehicle. Include any state ration, you can deduct the amount paid to the
and local general sales taxes paid for a leased corporation that represents your share of the
• Pennsylvania Unemployment Compensa- motor vehicle. For purposes of this section, mo- real estate taxes the corporation paid or incur-
tion Fund. tor vehicles include cars, motorcycles, motor red for your dwelling unit. The corporation
• Rhode Island Temporary Disability Benefit homes, recreational vehicles, sport utility vehi- should provide you with a statement showing
Fund. cles, trucks, vans, and off-road vehicles. your share of the taxes. For more information,
• Washington State Supplemental Work- If you use the actual expenses method, see Special Rules for Cooperatives in Pub. 530.
men's Compensation Fund. ! you must have receipts to show the Division of real estate taxes between buy-
Employee contributions to private or CAUTION general sales taxes paid.
ers and sellers. If you bought or sold real es-
tate during the year, the real estate taxes must
CAUTION tible.
! voluntary disability plans aren’t deduc- Trade or business items. Don't include be divided between the buyer and the seller.
sales taxes paid on items used in your trade or The buyer and the seller must divide the real
Refund (or credit) of state or local income business on Schedule A (Form 1040). Instead, estate taxes according to the number of days in
taxes. If you receive a refund of (or credit for) go to the instructions for the form you are using the real property tax year (the period to which
state or local income taxes in a year after the to report business income and expenses to see the tax is imposed relates) that each owned the
year in which you paid them, you may have to if you can deduct these taxes. property. The seller is treated as paying the
include the refund in income on Schedule 1 Optional sales tax tables. Instead of using taxes up to, but not including, the date of sale.
(Form 1040), line 1, in the year you receive it. your actual expenses, you can figure your state The buyer is treated as paying the taxes begin-
This includes refunds resulting from taxes that and local general sales tax deduction using the ning with the date of sale. This applies regard-
were overwithheld, applied from a prior-year re- state and local sales tax tables in the Instruc- less of the lien dates under local law. Generally,
turn, not figured correctly, or figured again be- tions for Schedule A (Form 1040). You may also this information is included on the settlement
cause of an amended return. If you didn’t item- be able to add the state and local general sales statement provided at the closing.
ize your deductions in the previous year, don’t taxes paid on certain specified items. If you (the seller) can’t deduct taxes until
include the refund in income. If you deducted Your applicable table amount is based on they are paid because you use the cash method
the taxes in the previous year, include all or part the state where you live, your income, and your of accounting, and the buyer of your property is
of the refund on Schedule 1 (Form 1040), line 1, family size. Your income is your adjusted gross personally liable for the tax, you are considered
in the year you receive the refund. For a discus- income plus any nontaxable items such as the to have paid your part of the tax at the time of
sion of how much to include, see Recoveries in following. the sale. This lets you deduct the part of the tax
Pub. 525, Taxable and Nontaxable Income, for to the date of sale even though you didn’t ac-
more information. • Tax-exempt interest. tually pay it. However, you must also include the
• Veterans’ benefits. amount of that tax in the selling price of the
Foreign Income Taxes • Nontaxable combat pay. property. The buyer must include the same
amount in his or her cost of the property.
Generally, you can take either a deduction or a • Workers’ compensation. You figure your deduction for taxes on each
credit for income taxes imposed on you by a for- • Nontaxable part of social security and rail- property bought or sold during the real property
eign country or a U.S. territory. However, you road retirement benefits. tax year as follows.
98 Chapter 11 Taxes Publication 17 (2023)

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3 to December 31, including their date of pur- sale, the seller is entitled to a 2023 tax deduc-
Worksheet 11-1. Figuring chase). They figure their deduction for taxes on tion of $931. This is the sum of the $680 for
their new home as follows. 2022 and the $251 for the 122 days the seller
Your State and Local Real owned the home in 2023. The seller must also
Estate Tax Deduction Worksheet 11-1. Figuring Your include the $931 in the selling price when they
Keep for Your Records State and Local Real Estate Tax figure the gain or loss on the sale. The seller
should contact the Browns in January 2024 to
1. Enter the total state and local real estate Deduction — Taxes on New Home find out how much real estate tax is due for
year . . . . . . . . . . . . . . . . . . . .
taxes for the real property tax 2023.
2. Enter the number of days in the real 1. Enter the total state and local real estate
taxes for the real property tax year . . . $732
property tax year that you owned the Form 1099-S. For certain sales or ex-
property . . . . . . . . . . . . . . . . . 2. Enter the number of days in the real changes of real estate, the person responsible
3. Divide line 2 by 365 (for leap years, . property tax year that you owned the for closing the sale (generally, the settlement
divide line 2 by 366) . . . . . . . . . . . property . . . . . . . . . . . . . . . . 243 agent) prepares Form 1099-S, Proceeds From
4. Multiply line 1 by line 3. This is your 3. Divide line 2 by 365 (for leap years, Real Estate Transactions, to report certain infor-
deduction. Enter it on Schedule A (Form 0.6658 mation to the IRS and to the seller of the prop-
1040), line 5b . . . . . . . . . . . . . . divide line 2 by 366). . . . . . . . . .
Note. Repeat steps 1 through 4 for each property you bought 4. Multiply line 1 by line 3. This is your erty. Box 2 of Form 1099-S is for the gross pro-
or sold during the real property tax year. Your total deduction is deduction. Enter it on Schedule A (Form ceeds from the sale and should include the
the sum of the line 4 amounts for all of the properties. $487 portion of the seller's real estate tax liability that
1040), line 5b. . . . . . . . . . . . .
the buyer will pay after the date of sale. The
Real estate taxes for prior years. Don’t di- Since Dennis and Beth paid all of the taxes on buyer includes these taxes in the cost basis of
vide delinquent taxes between the buyer and the new home, they add $245 ($732 paid less the property, and the seller both deducts this
seller if the taxes are for any real property tax $487 deduction) to their cost of the new home. amount as a tax paid and includes it in the sales
year before the one in which the property is (The sellers add this $245 to their selling price price of the property.
sold. Even if the buyer agrees to pay the delin- and deduct the $245 as a real estate tax.) For a real estate transaction that involves a
quent taxes, the buyer can’t deduct them. The Dennis and Beth's real estate tax deduction home, any real estate tax the seller paid in ad-
buyer must add them to the cost of the property. for their old and new homes is the sum of $214 vance but that is the liability of the buyer ap-
The seller can deduct these taxes paid by the and $487, or $701. They will enter this amount pears on Form 1099-S, box 6. The buyer de-
buyer. However, the seller must include them in on Schedule A (Form 1040), line 5b. ducts this amount as a real estate tax, and the
the selling price. seller reduces their real estate tax deduction (or
Examples. The following examples illustrate Example 2. George and Helen Brown includes it in income) by the same amount. See
how real estate taxes are divided between bought a new home on May 3, 2023. Their real Refund (or rebate), later.
buyer and seller. property tax year for the new home is the calen- Taxes placed in escrow. If your monthly mort-
dar year. Real estate taxes for 2022 were as- gage payment includes an amount placed in es-
Example 1. Dennis and Beth White's real sessed in their state on January 1, 2023. The crow (put in the care of a third party) for real es-
property tax year for both their old home and taxes became due on May 31, 2023, and Octo- tate taxes, you may not be able to deduct the
their new home is the calendar year, with pay- ber 31, 2023. total amount placed in escrow. You can deduct
ment due August 1. The tax on their old home, The Browns agreed to pay all taxes due after only the real estate tax that the third party ac-
sold on May 7, was $620. The tax on their new the date of purchase. Real estate taxes for 2022 tually paid to the taxing authority. If the third
home, bought on May 3, was $732. Dennis and were $680. They paid $340 on May 31, 2023, party doesn’t notify you of the amount of real
Beth are considered to have paid a proportion- and $340 on October 31, 2023. These taxes estate tax that was paid for you, contact the
ate share of the real estate taxes on the old were for the 2022 real property tax year. The third party or the taxing authority to find the
home even though they didn’t actually pay them Browns can’t deduct them since they didn’t own proper amount to show on your return.
to the taxing authority. On the other hand, they the property until 2023. Instead, they must add
can claim only a proportionate share of the $680 to the cost of their new home. Tenants by the entirety. If you and your
taxes they paid on their new property even In January 2024, the Browns receive their spouse held property as tenants by the entirety
though they paid the entire amount. 2023 property tax statement for $752, which and you file separate federal returns, each of
Dennis and Beth owned their old home dur- they will pay in 2024. The Browns owned their you can deduct only the taxes each of you paid
ing the real property tax year for 126 days (Jan- new home during the 2023 real property tax on the property.
uary 1 to May 6, the day before the sale). They year for 243 days (May 3 to December 31). Divorced individuals. If your divorce or sepa-
figure their deduction for taxes on their old They will figure their 2024 deduction for taxes ration agreement states that you must pay the
home as follows. as follows. real estate taxes for a home owned by you and
your spouse, part of your payments may be de-
Worksheet 11-1. Figuring Your Worksheet 11-1. Figuring Your ductible as alimony and part as real estate
State and Local Real Estate Tax State and Local Real Estate Tax taxes. See Payments to a third party in Pub. 504
Deduction — Taxes on Old Home Deduction — Taxes on New Home for more information.
1. Enter the total state and local real estate 1. Enter the total state and local real estate Ministers’ and military housing allowances.
taxes for the real property tax year . . . $620 taxes for the real property tax year . . . $752 If you are a minister or a member of the uni-
formed services and receive a housing allow-
2. Enter the number of days in the real 2. Enter the number of days in the real ance that you can exclude from income, you still
property tax year that you owned the property tax year that you owned the can deduct all of the real estate taxes you pay
property . . . . . . . . . . . . . . . . 126 property . . . . . . . . . . . . . . . . 243
on your home.
3. Divide line 2 by 365 (for leap years, 3. Divide line 2 by 365 (for leap years,
divide line 2 by 366). . . . . . . . . . 0.3452 divide line 2 by 366). . . . . . . . . . 0.6658 Refund (or rebate). If you received a refund or
rebate in 2023 of real estate taxes you paid in
4. Multiply line 1 by line 3. This is your 4. Multiply line 1 by line 3. This is your 2023, you must reduce your deduction by the
deduction. Enter it on Schedule A (Form deduction. Claim it on Schedule A
1040), line 5b. . . . . . . . . . . . . $214 (Form 1040), line 5b. . . . . . . . . . $501 amount refunded to you. If you received a re-
fund or rebate in 2023 of real estate taxes you
Since the buyers of their old home paid all of The remaining $251 ($752 paid less $501 de- deducted in an earlier year, you generally must
the taxes, Dennis and Beth also include the duction) of taxes paid in 2024, along with the include the refund or rebate in income in the
$214 in the selling price of the old home. (The $680 paid in 2023, is added to the cost of their year you receive it. However, the amount you in-
buyers add the $214 to their cost of the home.) new home. clude in income is limited to the amount of the
Dennis and Beth owned their new home dur- Because the taxes up to the date of sale are deduction that reduced your tax in the earlier
ing the real property tax year for 243 days (May considered paid by the seller on the date of
Publication 17 (2023) Chapter 11 Taxes 99

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Table 11-1. Which Taxes Can You Deduct?

Type of Tax You Can Deduct You Can’t Deduct
Fees and Charges Fees and charges that are expenses of your trade or Fees and charges that aren’t expenses of your trade or
business or of producing income. business or of producing income, such as fees for
driver's licenses, car inspections, parking, or
charges for water bills (see Taxes and Fees You
Can’t Deduct).
Fines and penalties.
Income Taxes State and local income taxes. Federal income taxes.
Foreign income taxes. Employee contributions to private or voluntary
disability plans.
Employee contributions to state funds listed under State and local general sales taxes if you choose to
Contributions to state benefit funds. deduct state and local income taxes.
General Sales Taxes State and local general sales taxes, including State and local income taxes if you choose to deduct
compensating use taxes. state and local general sales taxes.
Other Taxes Taxes that are expenses of your trade or business. Federal excise taxes, such as tax on gasoline, that
aren’t expenses of your trade or business or of
producing income.
Taxes on property producing rent or royalty income. Per capita taxes.
One-half of self-employment tax paid.
Personal Property State and local personal property taxes. Customs duties that aren’t expenses of your trade or
Taxes business or of producing income.
Real Estate Taxes State and local real estate taxes. Real estate taxes that are treated as imposed on
someone else (see Division of real estate taxes
between buyers and sellers ).
Tenant's share of real estate taxes paid by a Foreign real estate taxes.
cooperative housing corporation.
Taxes for local benefits (with exceptions). See Real
Estate-Related Items You Can’t Deduct.
Trash and garbage pickup fees (with exceptions). See
Real Estate-Related Items You Can’t Deduct.
Rent increase due to higher real estate taxes.
Homeowners' association charges.
year. For more information, see Recoveries in Local benefit taxes are deductible only if • A periodic charge for a residential service
Pub. 525. they are for maintenance, repair, or interest (such as a $20 per month or $240 annual
charges related to those benefits. If only a part fee charged to each homeowner for trash
of the taxes is for maintenance, repair, or inter- collection), or
Real Estate-Related Items est, you must be able to show the amount of • A flat fee charged for a single service pro-
You Can’t Deduct that part to claim the deduction. If you can’t de- vided by your government (such as a $30
termine what part of the tax is for maintenance, charge for mowing your lawn because it
Payments for the following items generally repair, or interest, none of it is deductible. was allowed to grow higher than permitted
aren’t deductible as real estate taxes.
Taxes for local benefits may be inclu- under your local ordinance).
• Taxes for local benefits. ! ded in your real estate tax bill. If your You must look at your real estate tax bill
• Itemized charges for services (such as CAUTION taxing authority (or mortgage lender)
to determine if any nondeductible item-
trash and garbage pickup fees). doesn’t furnish you a copy of your real estate CAUTION! ized charges, such as those listed
tax bill, ask for it. You should use the rules above, are included in the bill. If your taxing au-
• Transfer taxes (or stamp taxes). above to determine if the local benefit tax is de- thority (or mortgage lender) doesn’t furnish you
• Rent increases due to higher real estate ductible. Contact the taxing authority if you a copy of your real estate tax bill, ask for it.
taxes. need additional information about a specific
• Homeowners' association charges. charge on your real estate tax bill. Exception. Service charges used to main-
tain or improve services (such as trash collec-
Taxes for local benefits. Deductible real es- Itemized charges for services. An itemized tion or police and fire protection) are deductible
tate taxes generally don’t include taxes charged charge for services assessed against specific as real estate taxes if:
for local benefits and improvements tending to property or certain people isn’t a tax, even if the
increase the value of your property. These in- charge is paid to the taxing authority. For exam- • The fees or charges are imposed at a like
clude assessments for streets, sidewalks, water ple, you can’t deduct the charge as a real estate rate against all property in the taxing juris-
mains, sewer lines, public parking facilities, and tax if it is: diction;
similar improvements. You should increase the • A unit fee for the delivery of a service (such • The funds collected aren’t earmarked; in-
basis of your property by the amount of the as- as a $5 fee charged for every 1,000 gallons stead, they are commingled with general
sessment. of water you use), revenue funds; and

100 Chapter 11 Taxes Publication 17 (2023)

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• Funds used to maintain or improve serv- the wages of a household worker may be credit against your U.S. income tax on Schedule
ices aren’t limited to or determined by the included in medical expenses that you can 3 (Form 1040), line 1. To claim the credit, you
amount of these fees or charges collected. deduct, or childcare expenses that allow may have to complete and attach Form 1116.
you to claim the child and dependent care For more information, see the Instructions for
Transfer taxes (or stamp taxes). Transfer credit. For more information, see Pub. 502 Form 1040 or Pub. 514.
taxes and similar taxes and charges on the sale and Pub. 503.
of a personal home aren’t deductible. If they are Real estate taxes and personal property
paid by the seller, they are expenses of the sale • Estate, inheritance, legacy, or succes- taxes. Real estate and personal property taxes
and reduce the amount realized on the sale. If sion taxes. You can deduct the estate tax are deducted on Schedule A (Form 1040), lines
paid by the buyer, they are included in the cost attributable to income in respect of a dece- 5b and 5c, respectively, unless they are paid on
basis of the property. dent if you, as a beneficiary, must include property used in your business, in which case
that income in your gross income. In that they are deducted on Schedule C (Form 1040)
Rent increase due to higher real estate case, deduct the estate tax on Schedule A or Schedule F (Form 1040). Taxes on property
taxes. If your landlord increases your rent in (Form 1040), line 16. For more information, that produces rent or royalty income are deduc-
the form of a tax surcharge because of in- see Pub. 559. ted on Schedule E (Form 1040).
creased real estate taxes, you can’t deduct the
increase as taxes. • Federal income taxes. This includes in- Self-employment tax. Deduct one-half of your
come taxes withheld from your pay. self-employment tax on Schedule 1 (Form
Homeowners' association charges. These 1040), line 15.
charges aren’t deductible because they are im- • Fines and penalties. You can’t deduct
posed by the homeowners' association, rather fines and penalties paid to a government Other taxes. All other deductible taxes are de-
than the state or local government. for violation of any law, including related ducted on Schedule A (Form 1040), line 6.
amounts forfeited as collateral deposits.
Personal Property • Foreign personal or real property
taxes.
Taxes • Gift taxes.
Personal property tax is deductible if it is a state • License fees. You can’t deduct license
or local tax that is: fees for personal purposes (such as mar- 12.
riage, driver's, and pet license fees).
• Charged on personal property;
• Based only on the value of the personal • Per capita taxes. You can’t deduct state
or local per capita taxes.
property; and Other Itemized
• Charged on a yearly basis, even if it is col- Many taxes and fees other than those listed
lected more or less than once a year. above are also nondeductible, unless they are
ordinary and necessary expenses of a business Deductions
A tax that meets the above requirements or income-producing activity. For other nonde-
can be considered charged on personal prop- ductible items, see Real Estate-Related Items
erty even if it is for the exercise of a privilege. You Can’t Deduct, earlier. What's New
For example, a yearly tax based on value quali-
fies as a personal property tax even if it is called
a registration fee and is for the privilege of regis- Where To Deduct Standard mileage rate. The 2023 rate for
tering motor vehicles or using them on the high- business use of a vehicle is 65.5 cents a mile.
ways. You deduct taxes on the following schedules.
State and local income taxes. These taxes
If the tax is partly based on value and partly are deducted on Schedule A (Form 1040), Reminders
based on other criteria, it may qualify in part. line 5a, even if your only source of income is
from business, rents, or royalties. No miscellaneous itemized deductions al-
Example. Your state charges a yearly motor lowed. You can no longer claim any miscella-
vehicle registration tax of 1% of value plus 50 Limitation on deduction for state and lo- neous itemized deductions. Miscellaneous
cents per hundredweight. You paid $32 based cal taxes. The deduction for state and local itemized deductions are those deductions that
on the value ($1,500) and weight (3,400 lbs.) of taxes is limited to $10,000 ($5,000 if married fil- would have been subject to the 2%-of-adjus-
your car. You can deduct $15 (1% × $1,500) as ing married separately). State and local taxes ted-gross-income (AGI) limitation. See Miscella-
a personal property tax because it is based on are the taxes that you include on Schedule A neous Itemized Deductions, later.
the value. The remaining $17 ($0.50 × 34), (Form 1040), lines 5a, 5b, and 5c. Include taxes
based on the weight, isn’t deductible. imposed by a U.S. territory with your state and Fines and penalties. Rules regarding deduct-
local taxes on Schedule A (Form 1040), lines ing fines and penalties have changed. See
Taxes and Fees 5a, 5b, and 5c. However, don't include any U.S. Fines and Penalties, later.
territory taxes you paid that are allocable to ex-
You Can’t Deduct cluded income.
Many federal, state, and local government taxes You may want to take a credit for U.S. Introduction
aren’t deductible because they don’t fall within TIP territory tax instead of a deduction. See This chapter explains that you can no longer
the categories discussed earlier. Other taxes the instructions for Schedule 3 (Form claim any miscellaneous itemized deductions,
and fees, such as federal income taxes, aren’t 1040), line 1, for details. unless you fall into one of the qualified catego-
deductible because the tax law specifically pro- ries of employment claiming a deduction relat-
hibits a deduction for them. See Table 11-1. General sales taxes. Sales taxes are deduc- ing to unreimbursed employee expenses. Mis-
ted on Schedule A (Form 1040), line 5a. You cellaneous itemized deductions are those
Taxes and fees that are generally not deduc- must check the box on line 5a. If you elect to deductions that would have been subject to the
tible include the following items. deduct sales taxes, you can’t deduct state and 2%-of-AGI limitation. You can still claim certain
local income taxes on Schedule A (Form 1040), expenses as itemized deductions on Sched-
• Employment taxes. This includes social line 5a. ule A (Form 1040), Schedule A (Form
security, Medicare, and railroad retirement
taxes withheld from your pay. However, Foreign income taxes. Generally, income 1040-NR), or as an adjustment to income on
one-half of self-employment tax you pay is taxes you pay to a foreign country or U.S. terri- Form 1040 or 1040-SR. This chapter covers the
deductible. In addition, the social security tory can be claimed as an itemized deduction following topics.
and other employment taxes you pay on on Schedule A (Form 1040), line 6, or as a • Miscellaneous itemized deductions.
Publication 17 (2023) Chapter 12 Other Itemized Deductions 101

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•   Expenses you can't deduct.                                                             state  or  local  government  official,  or  an  em-     jointly and both of you were eligible educators, 
•   Expenses you can deduct.                                                               ployee with impairment-related work expenses.            the maximum deduction is $600. However, nei-
                                                                                                                                                    ther spouse can deduct more than $300 of their 
•   How to report your deductions.                                                         Armed Forces reservist (member of a re-                  qualified  expenses.  For  additional  information, 
                                                                                           serve  component).   You  are  a  member  of  a          see Educator Expenses in Pub. 529, Miscella-
        You  must  keep  records  to  verify  your                                         reserve component of the Armed Forces of the             neous Deductions.
        deductions.  You  should  keep  receipts,                                          United States if you are in the Army, Navy, Ma-
RECORDS canceled checks, substitute checks, fi-                                            rine Corps, Air Force, or Coast Guard Reserve;                   Educator  expenses  include  amounts 
nancial  account  statements,  and  other  docu-                                           the Army National Guard of the United States;            TIP     paid or incurred after March 12, 2020, 
mentary evidence. For more information on re-                                              or the Reserve Corps of the Public Health Serv-                  for personal protective equipment, dis-
cordkeeping,  see   What  Records  Should  I                                               ice.                                                     infectant,  and  other  supplies  used  for  the  pre-
Keep? in chapter 1.                                                                                                                                 vention of the spread of coronavirus. For more 
                                                                                           Qualified  performing  artist.      You  are  a          information, see the instructions for Schedule 1 
                                                                                           qualified performing artist if you:                      (Form 1040), line 11, and Educator Expenses in 
Useful Items                                                                               1. Performed services in the performing arts             Pub. 529, Miscellaneous Deductions.
You may want to see:                                                                             as an employee for at least two employers 
                                                                                                 during the tax year,
Publication                                                                                2. Received from at least two of the employ-             Expenses You Can’t 
    463   463 Travel, Gift, and Car Expenses                                                     ers wages of $200 or more per employer,            Deduct
    525   525 Taxable and Nontaxable Income                                                3. Had allowable business expenses attribut-             Because  of  the  suspension  of  miscellaneous 
    529   529 Miscellaneous Deductions                                                           able to the performing arts of more than           itemized deductions, there are two categories of 
    547   547 Casualties, Disasters, and Thefts                                                  10% of gross income from the performing            expenses you can't deduct: miscellaneous item-
                                                                                                 arts, and                                          ized deductions subject to the 2%-of-AGI limita-
    575   575 Pension and Annuity Income                                                                                                            tion,  and  those  expenses  that  are  traditionally 
                                                                                           4. Had AGI of $16,000 or less before deduct-
    587   587 Business Use of Your Home                                                          ing expenses as a performing artist.               nondeductible  under  the  Internal  Revenue 
    946   946 How To Depreciate Property                                                                                                            Code.  Both  categories  of  deduction  are  dis-
                                                                                           Fee-basis state or local government offi-                cussed next.
Form (and Instructions)                                                                    cial.   You  are  a  qualifying  fee-basis  official  if 
                                                                                           you are employed by a state or political subdivi-
    Schedule A (Form 1040)   Schedule A (Form 1040) Itemized                               sion of a state and are compensated, in whole            Miscellaneous Deductions Subject 
          Deductions                                                                       or in part, on a fee basis.                              to 2% AGI
    2106      2106 Employee Business Expenses                                                                                                       Unless you fall into one of the qualified catego-
                                                                                           Employee  with  impairment-related  work                 ries  of  employment  under Unreimbursed  Em-
    8839      8839 Qualified Adoption Expenses                                             expenses.  Impairment-related work expenses              ployee  Expenses,  earlier,  miscellaneous  item-
    Schedule K-1 (Form 1041)                        Schedule K-1 (Form 1041) Beneficiary's are the allowable expenses of an individual with         ized  deductions  that  are  subject  to  the 
          Share of Income, Deductions,                                                     physical or mental disabilities for attendant care       2%-of-AGI limitation can no longer be claimed. 
          Credits, etc.                                                                    at their place of employment. They also include          For expenses not related to unreimbursed em-
For these and other useful items, go to IRS.gov/                                           other expenses in connection with the place of           ployee expenses, you generally can't deduct the 
Forms.                                                                                     employment that enable the employee to work.             following expenses, even if you fall into one of 
                                                                                           See Pub. 463, Travel, Gift, and Car Expenses,            the  qualified  categories  of  employment  listed 
                                                                                           for more details.                                        earlier.
Miscellaneous                                                                              Allowable  unreimbursed  employee  expen-
Itemized Deductions                                                                        ses.    If  you  qualify  as  an  employee  in  one  of  Appraisal Fees
                                                                                           the  categories  mentioned  above,  you  may  be 
You  can  no  longer  claim  any  miscellaneous                                            able  to  deduct  the  following  items  as  unreim-     Appraisal fees you pay to figure a casualty loss 
itemized  deductions  that  are  subject  to  the                                          bursed employee expenses.                                or the fair market value of donated property are 
2%-of-AGI  limitation,  including  unreimbursed                                            Unreimbursed  employee  expenses  for  indi-             miscellaneous itemized deductions and can no 
employee expenses. However, you may be able                                                viduals  in  these  categories  of  employment  are      longer be deducted.
to deduct certain unreimbursed employee busi-                                              deducted  as  adjustments  to  gross  income. 
ness expenses if you fall into one of the follow-                                          Qualified employees listed in one of the catego-         Casualty and Theft Losses
ing categories of employment listed under                                    Un-           ries  above  must  complete  Form  2106,  Em-            Damaged or stolen property used in performing 
reimbursed Employee Expenses next.                                                         ployee Business Expenses, to take the deduc-             services as an employee is a miscellaneous de-
                                                                                           tion.                                                    duction  and  can  no  longer  be  deducted.  For 
Unreimbursed Employee                                                                      You  can  deduct  only  unreimbursed  em-                other  casualty  and  theft  losses,  see  Pub.  547, 
                                                                                           ployee expenses that are paid or incurred dur-           Casualties, Disasters, and Thefts.
Expenses                                                                                   ing your tax year, for carrying on your trade or 
                                                                                           business  of  being  an  employee,  and  ordinary 
You can no longer claim a deduction for unreim-                                            and necessary.                                           Clerical Help and Office Rent
bursed employee expenses unless you fall into                                                                                                       Office expenses, such as rent and clerical help, 
one of the following categories of employment.                                             An  expense  is  ordinary  if  it's  common  and 
                                                                                           accepted in your trade, business, or profession.         you  pay  in  connection  with  your  investments 
•   Armed Forces reservists.                                                               An expense is necessary if it's appropriate and          and collecting taxable income on those invest-
•   Qualified performing artists.                                                          helpful  to  your  business.  An  expense  doesn't       ments  are  miscellaneous  itemized  deductions 
                                                                                           have  to  be  required  to  be  considered  neces-       and are no longer deductible.
•   Fee-basis state or local government offi-                                              sary.
    cials.
                                                                                                                                                    Credit or Debit Card Convenience 
•   Employees with impairment-related work                                                                                                          Fees
    expenses.                                                                              Educator Expenses
                                                                                                                                                    The convenience fee charged by the card pro-
                                                                                           If  you  were  an  eligible  educator  in  2023,  you    cessor for paying your income tax (including es-
Categories of Employment                                                                   can  deduct  up  to  $300  of  qualified  expenses       timated tax payments) by credit or debit card is 
                                                                                           you paid in 2023 as an adjustment to gross in-           a  miscellaneous  itemized  deduction  and  is  no 
You can deduct unreimbursed employee expen-                                                come  on  Schedule  1  (Form  1040),  line  11,          longer deductible.
ses only if you qualify as an Armed Forces re-                                             rather  than  as  a  miscellaneous  itemized 
servist, a qualified performing artist, a fee-basis                                        deduction.  If  you  and  your  spouse  are  filing 
102                                                                                        Chapter 12      Other Itemized Deductions                                     Publication 17 (2023)

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Depreciation on Home Computer Loss on Deposits
If you use your home computer to produce in- For information on whether, and if so, how, you Nondeductible
come (for example, to manage your investments may deduct a loss on your deposit in a qualified Expenses
that produce taxable income), the depreciation financial institution, see Loss on Deposits in
of the computer for that part of the usage of the Pub. 547. In addition to the miscellaneous itemized de-
computer is a miscellaneous itemized deduc- ductions discussed earlier, you can't deduct the
tion and is no longer deductible. Repayments of Income following expenses.
Generally, repayments of amounts that you in-
Fees To Collect Interest and cluded in income in an earlier year is a miscella- List of Nondeductible
Dividends neous itemized deduction and can no longer be
Fees you pay to a broker, bank, trustee, or simi- deducted. If you had to repay more than $3,000 Expenses
lar agent to collect your taxable bond interest or that you included in your income in an earlier • Adoption expenses.
dividends on shares of stock are miscellaneous year, you may be able to deduct the amount.
itemized deductions and can no longer be de- See Repayments Under Claim of Right, later. • Broker's commissions.
ducted. • Burial or funeral expenses, including the
Repayments of Social Security cost of a cemetery lot.
Hobby Expenses Benefits • Campaign expenses.
A hobby isn't a business because it isn't carried For information on how to deduct your repay- • Capital expenses.
on to make a profit. Hobby expenses are mis- ments of certain social security benefits, see Check-writing fees.
cellaneous itemized deductions and can no lon- Repayments More Than Gross Benefits in •
ger be deducted. chapter 7. • Club dues.
• Commuting expenses.
Indirect Deductions of Safe Deposit Box Rent • Fees and licenses, such as car licenses,
Pass-Through Entities Rent you pay for a safe deposit box you use to marriage licenses, and dog tags.
Pass-through entities include partnerships, S store taxable income-producing stocks, bonds, • Fines or penalties.
corporations, and mutual funds that aren't pub- or investment-related papers is a miscellaneous
licly offered. Deductions of pass-through enti- itemized deduction and can no longer be de- • Health spa expenses.
ties are passed through to the partners or ducted. You also can't deduct the rent if you use • Hobby losses, but see Hobby Expenses,
shareholders. The partner’s or shareholder’s the box for jewelry, other personal items, or earlier.
share of passed-through deductions for invest- tax-exempt securities.
ment expenses are miscellaneous itemized de- • Home repairs, insurance, and rent.
ductions and can no longer be deducted. Service Charges on Dividend • Home security system.
Nonpublicly offered mutual funds. These Reinvestment Plans • Illegal bribes and kickbacks.
funds will send you a Form 1099-DIV, Dividends Service charges you pay as a subscriber in a • Investment-related seminars.
and Distributions, or a substitute form, showing dividend reinvestment plan are a miscellaneous • Life insurance premiums paid by the in-
your share of gross income and investment ex- itemized deduction and can no longer be de- sured.
penses. The investment expenses reported on ducted. These service charges include pay-
Form 1099-DIV are a miscellaneous itemized ments for: • Lobbying expenses.
deduction and are no longer deductible. • Holding shares acquired through a plan, • Losses from the sale of your home, furni-
ture, personal car, etc.
• Collecting and reinvesting cash dividends,
Investment Fees and Expenses and • Lost or misplaced cash or property.
Investment fees, custodial fees, trust adminis- • Keeping individual records and providing • Lunches with co-workers.
tration fees, and other expenses you paid for detailed statements of accounts. • Meals while working late.
managing your investments that produce taxa-
ble income are miscellaneous itemized deduc- • Medical expenses as business expenses
tions and are no longer deductible. Tax Preparation Fees other than medical examinations required
Tax preparation fees on the return for the year in by your employer.
Legal Expenses which you pay them are a miscellaneous item- • Personal disability insurance premiums.
ized deduction and can no longer be deducted.
You can usually deduct legal expenses that you These fees include the cost of tax preparation • Personal legal expenses.
incur in attempting to produce or collect taxable software programs and tax publications. They • Personal, living, or family expenses.
income or that you pay in connection with the also include any fee you paid for electronic filing • Political contributions.
determination, collection, or refund of any tax. of your return.
Legal expenses that you incur in attempting • Professional accreditation fees.
to produce or collect taxable income, or that you • Professional reputation improvement ex-
pay in connection with the determination, col- Trustee's Administrative Fees for
pense.
lection, or refund of any tax are miscellaneous IRA
itemized deductions and are no longer deducti- Trustee's administrative fees that are billed sep- • Relief fund contributions.
ble. arately and paid by you in connection with your • Residential telephone line.
You can deduct expenses of resolving tax is- IRA are a miscellaneous itemized deduction • Stockholders’ meeting attendance expen-
sues relating to profit or loss from business re- and can no longer be deducted. For more infor- ses.
ported on Schedule C (Form 1040), Profit or mation about IRAs, see chapter 9.
Loss From Business, from rentals or royalties • Tax-exempt income earning/collecting ex-
reported on Schedule E (Form 1040), Supple- penses.
mental Income and Loss, or from farm income • The value of wages never received or lost
and expenses reported on Schedule F (Form vacation time.
1040), Profit or Loss From Farming, on that
schedule. Expenses for resolving nonbusiness • Travel expenses for another individual.
tax issues are miscellaneous itemized deduc- • Voluntary unemployment benefit fund con-
tions and are no longer deductible. tributions.
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• Wristwatches. or penalties include amounts paid such as park- Lost or Mislaid Cash or Property
ing tickets, tax penalties, and penalties deduc- You can't deduct a loss based on the mere dis-
Adoption Expenses ted from teachers' paychecks after an illegal appearance of money or property. However, an
strike. accidental loss or disappearance of property
You can't deduct the expenses of adopting a No deduction is allowed for the restitution can qualify as a casualty if it results from an
child, but you may be able to take a credit for amount or amount paid to come into compli- identifiable event that is sudden, unexpected, or
those expenses. See the Instructions for Form ance with the law unless the amounts are spe- unusual. See Pub. 547 for more information.
8839, Qualified Adoption Expenses, for more cifically identified in the settlement agreement
information. or court order. Also, any amount paid or incur-
red as reimbursement to the government for the Lunches With Co-Workers
Campaign Expenses costs of any investigation or litigation are not eli- You can't deduct the expenses of lunches with
You can't deduct campaign expenses of a can- gible for the exceptions and are nondeductible. co-workers, except while traveling away from
didate for any office, even if the candidate is home on business. See Pub. 463 for information
running for reelection to the office. These in- Health Spa Expenses on deductible expenses while traveling away
from home.
clude qualification and registration fees for pri- You can't deduct health spa expenses, even if
mary elections. there is a job requirement to stay in excellent
Legal fees. You can't deduct legal fees paid physical condition, such as might be required of Meals While Working Late
to defend charges that arise from participation a law enforcement officer. You can't deduct the cost of meals while work-
in a political campaign. ing late. However, you may be able to claim a
Home Security System deduction if the cost of meals is a deductible
entertainment expense, or if you're traveling
Check-Writing Fees on Personal You can't deduct the cost of a home security away from home. See Pub. 463 for information
Account system as a miscellaneous deduction. How- on deductible entertainment expenses and ex-
If you have a personal checking account, you ever, you may be able to claim a deduction for a penses while traveling away from home.
can't deduct fees charged by the bank for the home security system as a business expense if
privilege of writing checks, even if the account you have a home office. See Security system
pays interest. under Figuring the Deduction in Pub. 587. Personal Legal Expenses
You can't deduct personal legal expenses such
Club Dues Investment-Related Seminars as those for the following.
Generally, you can't deduct the cost of member- You can't deduct any expenses for attending a • Custody of children.
ship in any club organized for business, pleas- convention, seminar, or similar meeting for in- • Breach of promise to marry suit.
ure, recreation, or other social purpose. This in- vestment purposes.
• Civil or criminal charges resulting from a
cludes business, social, athletic, luncheon, personal relationship.
sporting, airline, hotel, golf, and country clubs. Life Insurance Premiums
• Damages for personal injury, except for
You can't deduct dues paid to an organiza- You can't deduct premiums you pay on your life certain unlawful discrimination and whis-
tion if one of its main purposes is to: insurance. You may be able to deduct, as ali- tle-blower claims.
• Conduct entertainment activities for mem- mony, premiums you pay on life insurance poli-
bers or their guests, or cies assigned to your former spouse. See Pub. • Preparation of a title (or defense or perfec-
504, Divorced or Separated Individuals, for in- tion of a title).
• Provide members or their guests with ac- formation on alimony. • Preparation of a will.
cess to entertainment facilities.
• Property claims or property settlement in a
Dues paid to airline, hotel, and luncheon Lobbying Expenses divorce.
clubs aren't deductible.
You generally can't deduct amounts paid or in- You can't deduct these expenses even if a
curred for lobbying expenses. These include ex- result of the legal proceeding is the loss of in-
Commuting Expenses penses to: come-producing property.
You can't deduct commuting expenses (the cost Influence legislation;
of transportation between your home and your •
main or regular place of work). If you haul tools, • Participate or intervene in any political Political Contributions
instruments, or other items in your car to and campaign for, or against, any candidate for You can't deduct contributions made to a politi-
from work, you can deduct only the additional public office; cal candidate, a campaign committee, or a
cost of hauling the items such as the rent on a • Attempt to influence the general public, or newsletter fund. Advertisements in convention
trailer to carry the items. segments of the public, about elections, bulletins and admissions to dinners or programs
legislative matters, or referendums; or that benefit a political party or political candi-
date aren't deductible.
Fines and Penalties • Communicate directly with covered execu-
Generally, no deduction is allowed for fines and tive branch officials in any attempt to influ-
penalties paid to a government or specified ence the official actions or positions of Professional Accreditation Fees
nongovernmental entity for the violation of any those officials. You can't deduct professional accreditation fees
law except in the following situations. Lobbying expenses also include any amounts such as the following.
• Amounts that constitute restitution. paid or incurred for research, preparation, plan- • Accounting certificate fees paid for the ini-
• Amounts paid to come into compliance ning, or coordination of any of these activities. tial right to practice accounting.
with the law. Dues used for lobbying. If a tax-exempt • Bar exam fees and incidental expenses in
• Amounts paid or incurred as the result of organization notifies you that part of the dues or securing initial admission to the bar.
certain court orders in which no govern- other amounts you pay to the organization are • Medical and dental license fees paid to get
ment or specified nongovernmental used to pay nondeductible lobbying expenses, initial licensing.
agency is a party. you can't deduct that part. See Lobbying Ex-
penses in Pub. 529 for information on excep-
• Amounts paid or incurred for taxes due. tions. Professional Reputation
Nondeductible amounts include an amount You can't deduct expenses of radio and TV ap-
paid in settlement of your actual or potential lia- pearances to increase your personal prestige or
bility for a fine or penalty (civil or criminal). Fines establish your professional reputation.
104 Chapter 12 Other Itemized Deductions Publication 17 (2023)

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Relief Fund Contributions Excess Deductions of an Estate or
You can't deduct contributions paid to a private Expenses You Can Trust
plan that pays benefits to any covered em- Deduct Generally, if an estate or trust has an excess de-
ployee who can't work because of any injury or duction resulting from total deductions being
illness not related to the job. You can deduct the items listed below as item- greater than its gross income, in the estate’s or
ized deductions. Report these items on Sched- trust's last tax year, a beneficiary can deduct the
Residential Telephone Service ule A (Form 1040), line 16, or Schedule A (Form excess deductions, depending on its character.
You can't deduct any charge (including taxes) 1040-NR), line 7. The excess deductions retain their character as
an adjustment to arrive at adjusted gross in-
for basic local telephone service for the first tel- come on Schedule 1 (Form 1040), as a
ephone line to your residence, even if it's used List of Deductions non-miscellaneous itemized deduction reported
in a trade or business. on Schedule A (Form 1040), or as a miscellane-
Each of the following items is discussed in de-
tail after the list (except where indicated). ous itemized deduction. For more information
Stockholders' Meetings on excess deductions of an estate or trust, see
You can't deduct transportation and other ex- • Amortizable premium on taxable bonds. the Instructions for Schedule K-1 (Form 1041)
penses you pay to attend stockholders' meet- • Casualty and theft losses from income- for a Beneficiary Filing Form 1040.
ings of companies in which you own stock but producing property.
have no other interest. You can't deduct these Excess deductions of an estate or trust. Federal Estate Tax on Income in
expenses even if you're attending the meeting •
Respect of a Decedent
to get information that would be useful in mak- • Federal estate tax on income in respect of
ing further investments. a decedent. You can deduct the federal estate tax attributa-
ble to income in respect of a decedent that you
• Gambling losses up to the amount of gam- as a beneficiary include in your gross income.
Tax-Exempt Income Expenses bling winnings. Income in respect of the decedent is gross in-
You can't deduct expenses to produce tax-ex- • Impairment-related work expenses of per- come that the decedent would have received
empt income. You can't deduct interest on a sons with disabilities. had death not occurred and that wasn't properly
includible in the decedent's final income tax re-
debt incurred or continued to buy or carry • Losses from Ponzi-type investment turn. See Pub. 559, Survivors, Executors, and
tax-exempt securities. schemes (see Pub. 547 for more informa- Administrators, for more information.
If you have expenses to produce both taxa- tion).
ble and tax-exempt income, but you can't iden-
tify the expenses that produce each type of in- • Repayments of more than $3,000 under a Gambling Losses up to the
come, you must divide the expenses based on claim of right.
Amount of Gambling Winnings
the amount of each type of income to determine • Unlawful discrimination claims. You must report the full amount of your gam-
the amount that you can deduct.
• Unrecovered investment in an annuity. bling winnings for the year on Schedule 1 (Form
1040), line 8b. You deduct your gambling losses
Travel Expenses for Another for the year on Schedule A (Form 1040), line 16.
Amortizable Premium on Taxable
Individual You can't deduct gambling losses that are more
Bonds
You generally can't deduct travel expenses you than your winnings.
pay or incur for a spouse, dependent, or other In general, if the amount you pay for a bond is
individual who accompanies you (or your em- greater than its stated principal amount, the ex- You can't reduce your gambling win-
ployee) on business or personal travel unless cess is bond premium. You can elect to amor- ! nings by your gambling losses and re-
the spouse, dependent, or other individual is an tize the premium on taxable bonds. The amorti- CAUTION port the difference. You must report the
employee of the taxpayer, the travel is for a zation of the premium is generally an offset to full amount of your winnings as income and
bona fide business purpose, and such expen- interest income on the bond rather than a sepa- claim your losses (up to the amount of win-
ses would otherwise be deductible by the rate deduction item. nings) as an itemized deduction. Therefore,
spouse, dependent, or other individual. See Part of the premium on some bonds may be your records should show your winnings sepa-
Pub. 463 for more information on deductible an itemized deduction on Schedule A (Form rately from your losses.
travel expenses. 1040). For more information, see Amortizable
Premium on Taxable Bonds in Pub. 529, and Diary of winnings and losses. You
Bond Premium Amortization in chapter 3 of must keep an accurate diary or similar
Voluntary Unemployment Pub. 550, Investment Income and Expenses. RECORDS record of your losses and winnings.
Benefit Fund Contributions Your diary should contain at least the following
You can't deduct voluntary unemployment ben- Casualty and Theft Losses of information.
efit fund contributions you make to a union fund Income-Producing Property • The date and type of your specific wager or
or a private fund. However, you can deduct con-
tributions as taxes if state law requires you to You can deduct a casualty or theft loss as an wagering activity.
make them to a state unemployment fund that itemized deduction on Schedule A (Form 1040), • The name and address or location of the
covers you for the loss of wages from unem- line 16, if the damaged or stolen property was gambling establishment.
ployment caused by business conditions. income-producing property (property held for
investment, such as stocks, notes, bonds, gold, • The names of other persons present with
silver, vacant lots, and works of art). First, report you at the gambling establishment.
Wristwatches the loss in Form 4684, Section B. You may also • The amount(s) you won or lost.
You can't deduct the cost of a wristwatch, even have to include the loss on Form 4797 if you're See Pub. 529 for more information.
if there is a job requirement that you know the otherwise required to file that form. To figure
correct time to properly perform your duties. your deduction, add all casualty or theft losses
from this type of property included on Form Impairment-Related Work
4684, lines 32 and 38b, or Form 4797, line 18a. Expenses
For more information on casualty and theft los- If you have a physical or mental disability that
ses, see Pub. 547. limits your being employed, or substantially lim-
its one or more of your major life activities, such
as performing manual tasks, walking, speaking,
breathing, learning, and working, you can
deduct your impairment-related work expenses.
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Impairment-related work expenses are ordi- amount you repaid or take a credit against your Unrecovered Investment in
nary and necessary business expenses for at- tax. See Repayments in chapter 8 for more in- Annuity
tendant care services at your place of work and formation.
for other expenses in connection with your A retiree who contributed to the cost of an annu-
ity can exclude from income a part of each pay-
place of work that are necessary for you to be Unlawful Discrimination Claims ment received as a tax-free return of the retir-
able to work.
You may be able to deduct, as an adjustment to ee's investment. If the retiree dies before the
Self-employed. If you're self-employed, en- income on Schedule 1 (Form 1040), line 24h, entire investment is recovered tax free, any un-
ter your impairment-related work expenses on attorney fees and court costs for actions settled recovered investment can be deducted on the
the appropriate form (Schedule C (Form 1040), or decided after October 22, 2004, involving a retiree's final income tax return. See Pub. 575,
Schedule E (Form 1040), or Schedule F (Form claim of unlawful discrimination, a claim against Pension and Annuity Income, for more informa-
1040)) used to report your business income and the U.S. Government, or a claim made under tion about the tax treatment of pensions and an-
expenses. section 1862(b)(3)(A) of the Social Security Act. nuities.
However, the amount you can deduct on
Repayments Under Claim of Right Schedule 1 (Form 1040), line 24h, is limited to
the amount of the judgment or settlement you
If you had to repay more than $3,000 that you are including in income for the tax year. See
included in your income in an earlier year be- Pub. 525, Taxable and Nontaxable Income, for
cause at the time you thought you had an unre- more information.
stricted right to it, you may be able to deduct the

106 Chapter 12 Other Itemized Deductions Publication 17 (2023)

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Part Four.

                                                           The two chapters in this part explain how to figure your tax. They also 
Figuring Your                                              discuss tax credits that, unlike deductions, are subtracted directly from your 
                                                           tax and reduce your tax dollar for dollar.
Taxes, and 
                                                           The Form 1040 and Form 1040-SR schedules that are discussed in these 
Refundable and                                             chapters are:
                                                           • Schedule 1, Additional Income and Adjustments to Income;
Nonrefundable 
                                                           • Schedule 2, Additional Taxes; and
Credits                                                    • Schedule 3, Additional Credits and Payments.

                                                           Form (and Instructions)
                                                               W-2 W-2 Wage and Tax Statement                                                                   Figuring Your Tax
13.                                                            Schedule SE (Form 1040)            Schedule SE (Form 1040)                                       Your  income  tax  is  based  on  your  taxable  in-
                                                                   Self-Employment Tax                                                                          come.  After  you  figure  your  income  tax  and 
                                                                                                                                                                AMT,  if  any,  subtract  your  tax  credits  and  add 
                                                               Schedule 8812 (Form 1040)                                  Schedule 8812 (Form 1040) Credits for any other taxes you may owe. The result is your 
How To Figure                                                      Qualifying Children and Other                                                                total tax. Compare your total tax with your total 
                                                                   Dependents                                                                                   payments to determine whether you are entitled 
Your Tax                                                       1116    1116 Foreign Tax Credit                                                                  to a refund or must make a payment.
                                                               3800    3800 General Business Credit                                                             This  section  provides  a  general  outline  of 
                                                               4136    4136 Credit for Federal Tax Paid on Fuels                                                how to figure your tax. You can find step-by-step 
                                                                                                                                                                directions in the Instructions for Form 1040.
Introduction                                                   4970    4970 Tax on Accumulation Distribution of                                                 Tax. Most taxpayers use either the Tax Table or 
After you have figured your income and deduc-                      Trusts                                                                                       the Tax  Computation  Worksheet  to  figure  their 
tions,  your  next  step  is  to  figure  your  tax.  This 
chapter discusses:                                             5329    5329 Additional Taxes on Qualified Plans                                                 income  tax.  However,  there  are  special  meth-
                                                                   (Including IRAs) and Other                                                                   ods if your income includes any of the following 
• The general steps you take to figure your                        Tax-Favored Accounts                                                                         items.
  tax,
                                                                       5405 
• An additional tax you may have to pay                        5405         Repayment of the First-Time                                                         •   A net capital gain. See Pub. 550.
  called the alternative minimum tax (AMT),                        Homebuyer Credit                                                                             •   Qualified dividends taxed at the same 
  and                                                          5695    5695 Residential Energy Credits                                                              rates as a net capital gain. See Pub. 550.
• The conditions you must meet if you want                     5884    5884 Work Opportunity Credit                                                             •   Lump-sum distributions. See Pub. 575.
  the IRS to figure your tax.                                                                                                                                   •   Farming or fishing income. See Schedule J 
                                                               8396    8396 Mortgage Interest Credit                                                                (Form 1040).
Useful Items                                                   8801    8801 Credit for Prior Year Minimum                                                       •   Tax for certain children who have unearned 
You may want to see:                                               Tax—Individuals, Estates, and Trusts                                                             income. See Form 8615.
                                                               8835    8835 Renewable Electricity Production                                                    •   Parent's election to report child's interest 
Publication                                                        Credit                                                                                           and dividends. See Form 8814.
    503 503 Child and Dependent Care Expenses                  8839    8839 Qualified Adoption Expenses                                                         •   Foreign earned income exclusion or the 
    505 505 Tax Withholding and Estimated Tax                  8846    8846 Credit for Employer Social Security                                                     housing exclusion. (See Form 2555, For-
                                                                   and Medicare Taxes Paid on Certain                                                               eign Earned Income, and the Foreign 
    524 524 Credit for the Elderly or the Disabled                 Employee Tips                                                                                    Earned Income Tax Worksheet in the In-
                                                                                                                                                                    structions for Form 1040.)
    525 525 Taxable and Nontaxable Income                      8853    8853 Archer MSAs and Long-Term Care 
    531 531 Reporting Tip Income                                   Insurance Contracts                                                                          Credits. After  you  figure  your  income  tax  and 
                                                                                                                                                                any AMT (discussed later), determine if you are 
                                                                       8880 
    550 550 Investment Income and Expenses                     8880         Credit for Qualified Retirement                                                     eligible for any tax credits. Eligibility information 
                                                                   Savings Contributions                                                                        for these tax credits is discussed in other publi-
    560 560 Retirement Plans for Small Business                8889    8889 Health Savings Accounts (HSAs)                                                      cations  and  your  form  instructions.  The  follow-
        (SEP, SIMPLE, and Qualified Plans)                                                                                                                      ing  items  are  some  of  the  credits  you  may  be 
                                                               8910    8910 Alternative Motor Vehicle Credit                                                    able to subtract from your tax and shows where 
    575 575 Pension and Annuity Income                                                                                                                          you can find more information on each credit.
                                                               8912    8912 Credit to Holders of Tax Credit 
    596 596 Earned Income Credit (EIC)                             Bonds                                                                                        •   Adoption credit. See Form 8839.
    926 926 Household Employer’s Tax Guide                     8936    8936 Clean Vehicle Credits                                                               •   Alternative motor vehicle credit. See Form 
                                                                                                                                                                    8910.
    969 969 Health Savings Accounts and Other                  8959    8959 Additional Medicare Tax
                                                                                                                                                                •   Child and dependent care credit. See Pub. 
        Tax-Favored Health Plans                               8960    8960 Net Investment Income                                                                   503.
    970 970 Tax Benefits for Education                             Tax—Individuals, Estates, and Trusts
                                                                                                                                                                •   Child tax credit. See Schedule 8812 (Form 
    974 974 Premium Tax Credit (PTC)                           8962    8962 Premium Tax Credit (PTC)                                                                1040).
Publication 17 (2023)                                        Chapter 13     How To Figure Your Tax                                                                                                           107

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• Credit for employer social security and • Net investment income tax. See Form U.S. savings bonds instead of receiving a paper
Medicare taxes paid on certain employee 8960. check.
tips. See Form 8846. • Recapture of an education credit. See Pub.
• Credit to holders of tax credit bonds. See 970. Alternative
Form 8912. • Recapture of other credits. See the Instruc-
• Education credit. See Pub. 970. tions for Form 1040. Minimum Tax (AMT)
• Elderly or disabled credit. See Pub. 524. • Repayment of first-time homebuyer credit. This section briefly discusses an additional tax
• Foreign tax credit. See Form 1116. See Form 5405. you may have to pay.
• General business credit. See Form 3800. • Section 72(m)(5) excess benefits tax. See The tax law gives special treatment to some
Pub. 560. kinds of income and allows special deductions
• Mortgage interest credit. See Form 8396. and credits for some kinds of expenses. Tax-
• Self-employment tax. See Schedule SE
• Clean vehicle credits. See Form 8936. (Form 1040). payers who benefit from this special treatment
may have to pay at least a minimum amount of
• Premium tax credit. See Pub. 974. • Social security and Medicare tax on tips. tax through an additional tax called AMT.
• Prior year minimum tax credit. See Form See Pub. 531.
You may have to pay the AMT if your taxable
8801. • Social security and Medicare tax on wa- income for regular tax purposes, combined with
• Renewable electricity production credit. ges. See Pub. 525. certain adjustments and tax preference items, is
See Form 8835. • Tax on accumulation distribution of trusts. more than a certain amount. See Form 6251,
• Residential clean energy credit. See Form See Form 4970. Alternative Minimum Tax—Individuals.
5695. • Tax on golden parachute payments. See Adjustments and tax preference items. The
• Retirement savings contribution credit. See the Instructions for Form 1040. more common adjustments and tax preference
Form 8880. • Uncollected social security and Medicare items include:
• Work opportunity credit. See Form 5884. tax on group-term life insurance. See Form • Addition of the standard deduction (if
W-2.
Some credits (such as the earned income claimed);
credit) aren’t listed because they are treated as • Uncollected social security and Medicare • Addition of itemized deductions claimed for
payments. See Payments, later. tax on tips. See Pub. 531. state and local taxes and certain interest;
Other taxes. After you subtract your tax cred- You may also have to pay AMT (discussed • Subtraction of any refund of state and local
its, determine whether there are any other taxes later in this chapter). taxes included in gross income;
you must pay. This chapter doesn’t explain Payments. After you determine your total tax, • Changes to accelerated depreciation of
these other taxes. You can find that information figure the total payments you have already certain property;
in other publications and your form instructions. made for the year. Include credits that are trea- • Difference between gain or loss on the sale
See the following list for other taxes you may ted as payments. This chapter doesn’t explain of property reported for regular tax purpo-
need to add to your income tax. these payments and credits. You can find that ses and AMT purposes;
• Additional Medicare tax. See Form 8959. information in other publications and your form
instructions. See the following list of payments • Addition of certain income from incentive
• Additional tax on ABLE accounts. See and credits that you may be able to include in stock options;
Pub. 969. your total payments. • Change in certain passive activity loss de-
• Additional tax on Archer MSAs and • American opportunity credit. See Pub. 970. ductions;
long-term care insurance contracts. See
Form 8853. • Additional child tax credit. See Schedule • Addition of certain depletion that is more
8812 (Form 1040). than the adjusted basis of the property;
• Additional tax on Coverdell ESAs. See
Form 5329. • Credit for federal tax on fuels. See Form • Addition of part of the deduction for certain
4136. intangible drilling costs; and
• Additional tax on HSAs. See Form 8889.
• Additional tax on income you received from • Credit for tax on undistributed capital gain. • Addition of tax-exempt interest on certain
See the Instructions for Form 1040. private activity bonds.
a nonqualified deferred compensation plan
that fails to meet certain requirements. See • Earned income credit. See Pub. 596. More information. For more information about
the Instructions for Form 1040. • Estimated tax paid. See Pub. 505. the AMT, see the Instructions for Form 6251.
• Additional tax on qualified plans and other • Excess social security and RRTA tax with-
tax-favored accounts. See Form 5329. held. See the Instructions for Form 1040. Tax Figured by the IRS
• Additional tax on qualified retirement plans • Federal income tax withheld. See Pub. If you file by the due date of your return (not
and IRAs. See Form 5329. 505. counting extensions) — April 15, 2024, for most
• Additional tax on qualified tuition pro- • Net premium tax credit. See the Instruc- people — you can have the IRS figure your tax
grams. See Pub. 970. tions for Form 8962 or the Instructions for for you on Form 1040 or 1040-SR.
• Excise tax on insider stock compensation Form 1040. If the IRS figures your tax and you paid too
from an expatriated corporation. See the • Qualified sick and family leave credits. See much, you will receive a refund. If you didn’t pay
Instructions for Form 1040. the Instructions for Form 1040. enough, you will receive a bill for the balance.
To avoid interest or the penalty for late payment,
• Household employment taxes. See Pub. • Tax paid with extension. See the Instruc- you must pay the bill within 30 days of the date
926. tions for Form 1040. of the bill or by the due date for your return,
• Interest on the deferred tax on gain from Refund or balance due. To determine whichever is later.
certain installment sales with a sales price whether you are entitled to a refund or whether The IRS can also figure the credit for the eld-
over $150,000. See the Instructions for you must make a payment, compare your total erly or the disabled and the earned income
Form 1040. payments with your total tax. If you are entitled credit for you.
• Interest on the tax due on installment in- to a refund, see your form instructions for infor-
come from the sale of certain residential mation on having it directly deposited into one When the IRS cannot figure your tax. The
lots and timeshares. See the Instructions or more of your accounts (including a traditional IRS can’t figure your tax for you if any of the
for Form 1040. IRA, Roth IRA, or a SEP-IRA), or to purchase following apply.
108 Chapter 13 How To Figure Your Tax Publication 17 (2023)

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1. You want your refund directly deposited Fill in and attach any schedules and forms on Schedule EIC, line 2, the credit will be re-
into your checking or savings account. asked for on the lines you completed to your pa- duced or disallowed unless the child was born
2. You want any part of your refund applied to per return. Attach a copy of each of your Forms and died in 2023.
your 2024 estimated tax. W-2 to your paper return. Also, attach to your If your credit for any year after 1996 was re-
paper return any Form 1099-R you received that duced or disallowed by the IRS, you may also
3. You had income for the year from sources has withholding tax in box 4. have to file Form 8862 with your return. For de-
other than wages, salaries, tips, interest, Mail your return to the Internal Revenue tails, see the Instructions for Form 1040.
dividends, taxable social security benefits, Service Center for the area where you live. A list
unemployment compensation, IRA distri- of Service Center addresses is in the instruc-
butions, pensions, and annuities. tions for your tax return.
4. Your taxable income is $100,000 or more.
5. You itemize deductions. Form 1040 or 1040-SR Line Entries
If you want the IRS to figure your tax. Read
6. You file any of the following forms. Form 1040 or 1040-SR, lines 1 through 15, and 14.
a. Form 2555, Foreign Earned Income. Schedule 1 (Form 1040), if applicable. Fill in the
lines that apply to you and attach Schedule 1
b. Form 4137, Social Security and Medi- (Form 1040), if applicable. Don’t complete Form
care Tax on Unreported Tip Income. 1040 or 1040-SR, line 16 or 17. Child Tax Credit
c. Form 4970, Tax on Accumulation Dis- If you are filing a joint return, use the space
tribution of Trusts. on the dotted line next to the words “Adjusted and Credit for
Gross Income” on the first page of your return to
d. Form 4972, Tax on Lump-Sum Distri- separately show your taxable income and your
butions. spouse's taxable income. Other
e. Form 6198, At-Risk Limitations. Read Form 1040 or 1040-SR, lines 19
through 33, and Schedules 2 and 3 (Form Dependents
f. Form 6251, Alternative Minimum 1040), if applicable. Fill in the lines that apply to
Tax—Individuals. you and attach Schedules 2 and 3 (Form 1040),
g. Form 8606, Nondeductible IRAs. if applicable. Don’t fill in Form 1040 or 1040-SR,
lines 22, 24, 33, or 34 through 38. Don’t fill in What’s New
h. Form 8615, Tax for Certain Children Schedule 2 (Form 1040), line 1 or 3. Also, don’t
Who Have Unearned Income. complete Schedule 3 (Form 1040), line 6d, if ACTC amount increased. The maximum
i. Form 8814, Parents' Election To Re- you are completing Schedule R (Form 1040), or amount of ACTC for each qualifying child in-
port Child's Interest and Dividends. Form 1040 or 1040-SR, line 27, if you want the creased to $1,600.
IRS to figure the credits shown on those lines.
j. Form 8839, Qualified Adoption Ex-
penses. Payments. If you have federal income tax with-
held that is shown on Form W-2, box 2; Form Reminders
k. Form 8853, Archer MSAs and 1099, box 4; Form W-2G, box 4; or another form
Long-Term Care Insurance Contracts. (see the Instructions for Form 1040 for more in- Schedule 8812 (Form 1040). The Schedule
l. Form 8889, Health Savings Accounts formation), enter the amount on Form 1040 or 8812 (Form 1040) and its instructions are the
(HSAs). 1040-SR, line 25. Enter any estimated tax pay- single source for figuring and reporting the child
ments you made on Form 1040 or 1040-SR, tax credit, credit for other dependents, and ad-
m. Form 8919, Uncollected Social Secur- line 26. ditional child tax credit. The instructions now in-
ity and Medicare Tax on Wages. clude all applicable worksheets for figuring
Credit for child and dependent care expen- these credits. As a result, Pub. 972, Child Tax
ses. If you can take this credit, complete Form Credit, won’t be revised. For prior-year versions
Filing the Return 2441 and attach it to your paper return. Enter of Pub. 972, go to IRS.gov/Pub972.
After you complete the line entries for the tax the amount of the credit on Schedule 3 (Form
form you are filing, fill in your name and ad- 1040), line 2. The IRS will not figure this credit. Abbreviations used throughout this chap-
ter. The following abbreviations will be used in
dress. Enter your social security number in the Net premium tax credit. If you take this credit, this chapter when appropriate.
space provided. If you are married, enter the so- complete Form 8962, Premium Tax Credit ACTC means additional child tax credit.
cial security numbers of you and your spouse, (PTC), and attach it to your return. Enter the •
even if you file separately. Sign and date your amount of the credit on Schedule 3 (Form • ATIN means adoption taxpayer identifica-
return and enter your occupation(s). If you are 1040), line 9. The IRS will not figure this credit. tion number.
filing a joint return, both you and your spouse CTC means child tax credit.
must sign it. Enter your daytime phone number Credit for the elderly or the disabled. If you •
in the space provided. This may help speed the can take this credit, the IRS can figure it for you. • ITIN means individual taxpayer identifica-
processing of your return if we have a question Enter “CFE” on the line next to Schedule 3 tion number.
that can be answered over the phone. If you are (Form 1040), line 6d, and attach Schedule R
filing a joint return, you may enter either your or (Form 1040) to your paper return. On Sched- • ODC means credit for other dependents.
your spouse's daytime phone number. ule R (Form 1040), check the box in Part I for • SSN means social security number.
If you want to allow your preparer, a friend, a your filing status and age. Complete Parts II and TIN means taxpayer identification number.
family member, or any other person you choose III, lines 11 and 13, if they apply. •
A TIN may be an ATIN, an ITIN, or an SSN.
to discuss your 2023 tax return with the IRS, Earned income credit. If you can take this Other abbreviations may be used in this chapter
check the “Yes” box in the “Third Party Desig- credit, the IRS can figure it for you. Enter “EIC” and will be defined as needed.
nee” area on your return. Also, enter the design- on the dotted line on Form 1040 or 1040-SR,
ee's name, phone number, and any five digits line 27. If you elect to use your nontaxable com- Delayed refund for returns claiming the
the designee chooses as their personal identifi- bat pay in figuring your EIC, enter the amount ACTC. The IRS can’t issue refunds before
cation number (PIN). If you check the “Yes” box, on Form 1040 or 1040-SR, line 1i. mid-February 2024 for returns that properly
you, and your spouse if filing a joint return, are If you have a qualifying child, you must fill in claim the ACTC. This time frame applies to the
authorizing the IRS to call the designee to an- Schedule EIC (Form 1040), Earned Income
swer any questions that may arise during the Credit, and attach it to your paper return. If you
processing of your return. don’t provide the child's social security number

Publication 17 (2023) Chapter 14 Child Tax Credit and Credit for Other Dependents 109

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entire refund, not just the portion associated you have a dependent who doesn’t have an 4. The child lived with you for more than half
with the ACTC. SSN, ITIN, or ATIN issued on or before the due of 2023 (see Exceptions to time lived with
date of your 2023 return (including extensions), you, later).
you can’t use that dependent to claim the ODC
Introduction on either your original or amended 2023 tax re- 5. The child is claimed as a dependent on
turn. your return. See chapter 3 for more infor-
mation about claiming someone as a de-
The CTC is a credit that may reduce your tax by If you apply for an ITIN or ATIN for the de- pendent.
as much as $2,000 for each child who qualifies pendent on or before the due date of your 2023
you for the credit. See Limits on the CTC and return (including extensions) and the IRS issues 6. The child doesn’t file a joint return for the
ODC, later. the ITIN or ATIN as a result of the application, year (or files it only to claim a refund of
The ACTC is a credit you may be able to the IRS will consider the ITIN or ATIN as issued withheld income tax or estimated tax
take if you are not able to claim the full amount on or before the due date of your return. paid).
of the CTC.
The ODC is a credit that may reduce your 7. The child was a U.S. citizen, U.S. national,
tax by as much as $500 for each eligible de- Improper Claims or U.S. resident alien. For more informa-
pendent. tion, see Pub. 519. If the child was adop-
If you erroneously claim the CTC, ACTC, or ted, see Adopted child, later.
The CTC and the ACTC shouldn’t be ODC, and it is later determined that your error
! confused with the child and dependent was due to reckless or intentional disregard of Example. Your child turned 17 on Decem-
CAUTION care credit discussed in Pub. 503. the CTC, ACTC, or ODC rules, you will not be ber 30, 2023, and is a citizen of the United
allowed to claim any of these credits for 2 years. States and claimed as a dependent on your re-
If it is determined that your error was due to turn. You can't use the child to claim the CTC or
Useful Items fraud, you will not be allowed to claim any of ACTC because the child was not under age 17
You may want to see: these credits for 10 years. You may also have to at the end of 2023.
pay penalties.
Form (and Instructions) If your child is age 17 or older at the
Form 8862 may be required. If your CTC (re- TIP end of 2023, see Credit for Other De-
Schedule 8812 (Form 1040) Schedule 8812 (Form 1040) Credits for fundable or nonrefundable depending on the pendents (ODC), later.
Qualifying Children and Other tax year), ACTC, or ODC for a year after 2015
Dependents was denied or reduced for any reason other Adopted child. An adopted child is always
8862 8862 Information To Claim Certain Credits than a math or clerical error, you must attach treated as your own child. An adopted child in-
After Disallowance Form 8862 to your tax return to claim the CTC, cludes a child lawfully placed with you for legal
ACTC, or ODC, unless an exception applies. adoption.
For these and other useful items, go to IRS.gov/ See Form 8862, Information To Claim Certain If you are a U.S. citizen or U.S. national and
Forms. Credits After Disallowance, and its instructions your adopted child lived with you all year as a
for more information, including whether an ex- member of your household in 2023, that child
ception applies. meets condition 7, earlier, to be a qualifying
Taxpayer Identification child for the child tax credit (or condition 3, later,
to be a qualifying person for the ODC).
Number Requirements Child Tax Credit (CTC)
Exceptions to time lived with you. A child is
You must have a TIN by the due date of your The CTC is for individuals who claim a child as considered to have lived with you for more than
return. If you, or your spouse if filing jointly, a dependent if the child meets additional condi- half of 2023 if the child was born or died in 2023
don’t have an SSN or ITIN issued on or before tions (described later). and your home was this child's home for more
the due date of your 2023 return (including ex- than half the time the child was alive. Temporary
tensions), you can’t claim the CTC, ODC, or Note. This credit is different from and in ad- absences by you or the child for special circum-
ACTC on either your original or amended 2023 dition to the credit for child and dependent care stances, such as school, vacation, business,
tax return. expenses and the earned income credit that medical care, military service, or detention in a
If you apply for an ITIN on or before the due you may also be eligible to claim. juvenile facility, count as time the child lived with
date of your 2023 return (including extensions) you.
and the IRS issues you an ITIN as a result of the The maximum amount you can claim for the
application, the IRS will consider your ITIN as credit is $2,000 for each child who qualifies you There are also exceptions for kidnapped
issued on or before the due date of your return. for the CTC. But, see Limits on the CTC and children and children of divorced or separated
ODC, later. parents. For details, see Residency Test in
Each qualifying child you use for CTC or chapter 3.
ACTC must have the required SSN. If you For more information about claiming the Qualifying child of more than one person.
have a qualifying child who doesn’t have the re- CTC, see Claiming the CTC and ODC, later. A special rule applies if your qualifying child is
quired SSN, you can’t use the child to claim the the qualifying child of more than one person.
CTC or ACTC on either your original or amen- For details, see Qualifying Child of More Than
ded 2023 tax return. The required SSN is one Qualifying Child for the
One Person in chapter 3.
that is valid for employment and is issued be- CTC
fore the due date of your 2023 return (including
extensions). A child qualifies you for the CTC if the child Required SSN
If your qualifying child was born and died in meets all of the following conditions.
2023 and you don’t have an SSN for the child, 1. The child is your son, daughter, stepchild, In addition to being a qualifying child for the
attach a copy of the child’s birth certificate, foster child, brother, sister, stepbrother, CTC, your child must have the required SSN.
death certificate, or hospital records. The docu- stepsister, half brother, half sister, or a de- The required SSN is one that is valid for em-
ment must show the child was born alive. scendant of any of them (for example, your ployment and that is issued by the Social Se-
If your qualifying child doesn’t have the re- grandchild, niece, or nephew). curity Administration (SSA) before the due date
quired SSN but has another type of TIN issued of your 2023 return (including extensions).
on or before the due date of your 2023 return 2. The child was under age 17 at the end of
(including extensions), you may be able to claim 2023. If your qualifying child does not have
TIP the required SSN, see Credit for Other
the ODC for that child. See Credit for Other De- 3. The child didn’t provide over half the Dependents (ODC), later.
pendents (ODC), later. child’s own support for 2023.
If your child was a U.S. citizen when the
Each dependent you use for the ODC must child received the SSN, the SSN is valid for
have a TIN by the due date of your return. If
110 Chapter 14 Child Tax Credit and Credit for Other Dependents Publication 17 (2023)

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employment. If “Not Valid for Employment” is Example. Your sibling’s 10-year-old child • You must file Schedule 8812 (Form 1040).
printed on your child’s social security card and lives in Mexico and qualifies as your dependent. • You must file Form 8862, if applicable. See
your child’s immigration status has changed so The child is not a U.S. citizen, U.S. national, or Improper Claims, earlier.
that your child is now a U.S. citizen or perma- U.S. resident alien. You can't use this depend-
nent resident, ask the SSA for a new social se- ent to claim the ODC. • You must enter a timely issued TIN on your
curity card without the legend. However, if “Valid tax return for you and your spouse (if filing
for Work Only With DHS Authorization” is prin- You can’t use the same child to claim jointly). See Taxpayer Identification Num-
ted on your child’s social security card, your ! the CTC or ACTC, and the ODC. ber Requirements, earlier.
CAUTION
child has the required SSN only as long as the • For each qualifying child under 17 for
Department of Homeland Security (DHS) au- whom you are claiming the CTC, you must
thorization is valid. Timely Issued TIN enter the required SSN for the child in col-
If your child doesn’t have the required SSN, umn (2) of the Dependents section of your
you can't use the child to claim the CTC or In addition to being a qualifying person for the tax return and check the Child tax credit
ACTC on either your original or amended 2023 ODC, the person must have an SSN, ITIN, or box in column (4). See Child Tax Credit
tax return. ATIN issued to the dependent on or before the (CTC), earlier.
due date of your 2023 return (including exten- For each dependent for whom you are
sions). If the person has not been issued an •
Credit for Other SSN, ITIN, or ATIN by that date, you can’t use claiming the ODC, you must enter the
Dependents (ODC) the person to claim the ODC on either your orig- timely issued TIN for the dependent in col-
inal or amended 2023 return. For more informa- umn (2) of the Dependents section of your
This credit is for individuals with a dependent tion, see Taxpayer Identification Number Re- tax return and check the Credit for other
who meets additional conditions (described quirements, earlier. dependents box in column (4). See Credit
for Other Dependents (ODC), earlier.
later).
Don't check both the Child tax credit
Note. This credit is different from and in ad- Limits on the CTC and ! box and the Credit for other depend-
dition to the credit for child and dependent care ODC CAUTION ents box for the same person.
expenses that you may also be eligible to claim.
The maximum amount you can claim for this The credit amount of your CTC or ODC may be
credit is $500 for each qualifying dependent. reduced if your modified adjusted gross income Additional Child Tax
See Limits on the CTC and ODC, later. (AGI) is more than the amounts shown below
for your filing status. Credit (ACTC)
For more information about claiming the
ODC, see Claiming the CTC and ODC, later. • Married filing jointly — $400,000. This credit is for certain individuals who get less
• All other filing statuses — $200,000. than the full amount of the CTC.
The ODC can’t be used to figure the
Qualifying Person for the Modified AGI. For purposes of the CTC and ! ACTC. Only your CTC can be used to
ODC ODC, your modified AGI is the amount on line 3 CAUTION figure your ACTC. If you are claiming
of Schedule 8812. the ODC but not the CTC, you can’t claim the
A person qualifies you for the ODC if the person ACTC.
meets all of the following conditions. For more information about limits on the
CTC and ODC, see the Instructions for Sched- Foreign earned income. If you file Form 2555
1. The person is claimed as a dependent on ule 8812 (Form 1040). (relating to foreign earned income), you can’t
your return. See chapter 3 for more infor-
mation about claiming someone as a de- claim the ACTC.
pendent. Claiming the CTC and Bona fide residents of Puerto Rico. Bona
2. The person can’t be used by you to claim ODC fide residents of Puerto Rico are no longer re-
the CTC or ACTC. See Child Tax Credit quired to have three or more qualifying children
(CTC), earlier. To claim the CTC or ODC, be sure you meet the to be eligible to claim the ACTC. See Schedule
3. The person was a U.S. citizen, U.S. na- following requirements. 8812 (Form 1040) and its instructions.
tional, or U.S. resident alien. For more in- • You must file Form 1040, 1040-SR, or How to claim the ACTC. To claim the ACTC,
formation, see Pub. 519. If the person is 1040-NR and include the name and TIN of see Schedule 8812 (Form 1040) and its instruc-
your adopted child, see Adopted child, each dependent for whom you are claiming tions.
earlier. the CTC or ODC.

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                                  See the instructions for line 16 to see if you must use the Tax Table 
2023                              below to figure your tax.                                                     Sample Table
Tax Table               CAUTION!                                                                                At    But      Single  Married  Married  Head 
                                                                                                                Least Less             ling    ling    of a 
                                                                                                                      Than             jointly* sepa-    house-
                        Example. A married couple are filing a joint return. Their taxable income on Form                                       rately   hold
                        1040, line 15, is $25,300. First, they find the $25,300–$25,350 taxable income line.                           Your tax is—
                        Next, they find the column for married filing jointly and read down the column. The     25,200 25,250  2,807   2,587     2,807 2,713
                        amount  shown  where  the  taxable  income  line  and  filing  status  column  meet  is 25,250 25,300  2,813   2,593     2,813 2,719
                        $2,599. This is the tax amount they should enter in the entry space on Form 1040,       25,300 25,350  2,819   2,599     2,819 2,725
                        line 16.                                                                                25,350 25,400  2,825   2,605     2,825 2,731

If line 15                                         If line 15                                                   If line 15
(taxable                And you are—               (taxable                And you are—                         (taxable               And you are—
income) is—                                        income) is—                                                  income) is—
At       But     Single Married  Married  Head of  At       But     Single Married  Married  Head of  At                  But   Single Married  Married  Head of 
least    less           filing    filing    a      least    less           filing    filing a                   least     less         filing    filing    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—
      0       5  0             0         0       0
      5       15 1             1         1       1    1,000                                                        2,000
      15      25 2             2         2       2
      25      50 4             4         4       4 1,000      1,025 101    101       101      101                  2,000  2,025 201          201       201    201
      50      75 6             6         6       6 1,025      1,050 104    104       104      104                  2,025  2,050 204          204       204    204
      75     100 9             9         9       9 1,050      1,075 106    106       106      106                  2,050  2,075 206          206       206    206
   100       125 11            11        11   11   1,075      1,100 109    109       109      109                  2,075  2,100 209          209       209    209
   125       150 14            14        14   14   1,100      1,125 111    111       111      111                  2,100  2,125 211          211       211    211
   150       175 16            16        16   16   1,125      1,150 114    114       114      114                  2,125  2,150 214          214       214    214
   175       200 19            19        19   19   1,150      1,175 116    116       116      116                  2,150  2,175 216          216       216    216
                                                   1,175      1,200 119    119       119      119                  2,175  2,200 219          219       219    219
   200       225 21            21        21   21   1,200      1,225 121    121       121      121                  2,200  2,225 221          221       221    221
   225       250 24            24        24   24   1,225      1,250 124    124       124      124                  2,225  2,250 224          224       224    224
   250       275 26            26        26   26
   275       300 29            29        29   29   1,250      1,275 126    126       126      126                  2,250  2,275 226          226       226    226
   300       325 31            31        31   31   1,275      1,300 129    129       129      129                  2,275  2,300 229          229       229    229
                                                   1,300      1,325 131    131       131      131                  2,300  2,325 231          231       231    231
   325       350 34            34        34   34   1,325      1,350 134    134       134      134                  2,325  2,350 234          234       234    234
   350       375 36            36        36   36   1,350      1,375 136    136       136      136                  2,350  2,375 236          236       236    236
   375       400 39            39        39   39   1,375      1,400 139    139       139      139                  2,375  2,400 239          239       239    239
   400       425 41            41        41   41   1,400      1,425 141    141       141      141                  2,400  2,425 241          241       241    241
   425       450 44            44        44   44   1,425      1,450 144    144       144      144                  2,425  2,450 244          244       244    244
   450       475 46            46        46   46   1,450      1,475 146    146       146      146                  2,450  2,475 246          246       246    246
   475       500 49            49        49   49   1,475      1,500 149    149       149      149                  2,475  2,500 249          249       249    249
   500       525 51            51        51   51   1,500      1,525 151    151       151      151                  2,500  2,525 251          251       251    251
   525       550 54            54        54   54   1,525      1,550 154    154       154      154                  2,525  2,550 254          254       254    254
   550       575 56            56        56   56   1,550      1,575 156    156       156      156                  2,550  2,575 256          256       256    256
   575       600 59            59        59   59   1,575      1,600 159    159       159      159                  2,575  2,600 259          259       259    259
   600       625 61            61        61   61   1,600      1,625 161    161       161      161                  2,600  2,625 261          261       261    261
   625       650 64            64        64   64   1,625      1,650 164    164       164      164                  2,625  2,650 264          264       264    264
   650       675 66            66        66   66   1,650      1,675 166    166       166      166                  2,650  2,675 266          266       266    266
   675       700 69            69        69   69   1,675      1,700 169    169       169      169                  2,675  2,700 269          269       269    269
   700       725 71            71        71   71   1,700      1,725 171    171       171      171                  2,700  2,725 271          271       271    271
   725       750 74            74        74   74   1,725      1,750 174    174       174      174                  2,725  2,750 274          274       274    274
   750       775 76            76        76   76   1,750      1,775 176    176       176      176                  2,750  2,775 276          276       276    276
   775       800 79            79        79   79   1,775      1,800 179    179       179      179                  2,775  2,800 279          279       279    279
   800       825 81            81        81   81   1,800      1,825 181    181       181      181                  2,800  2,825 281          281       281    281
   825       850 84            84        84   84   1,825      1,850 184    184       184      184                  2,825  2,850 284          284       284    284
   850       875 86            86        86   86   1,850      1,875 186    186       186      186                  2,850  2,875 286          286       286    286
   875       900 89            89        89   89   1,875      1,900 189    189       189      189                  2,875  2,900 289          289       289    289
   900       925 91            91        91   91   1,900      1,925 191    191       191      191                  2,900  2,925 291          291       291    291
   925       950 94            94        94   94   1,925      1,950 194    194       194      194                  2,925  2,950 294          294       294    294
   950       975 96            96        96   96   1,950      1,975 196    196       196      196                  2,950  2,975 296          296       296    296
   975     1,000 99            99        99   99   1,975      2,000 199    199       199      199                  2,975  3,000 299          299       299    299

                                                                                                                                                 (Continued)
* This column must also be used by a qualifying surviving spouse.

112                                                                                                                                    Publication 17 (2023)

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                                                                                                                 2023 Tax Table — Continued

If line 15                                      If line 15                                      If line 15
(taxable                And you are—            (taxable                And you are—            (taxable                And you are—
income) is—                                     income) is—                                     income) is—
At       But     Single Married  Married  Head of  At    But     Single Married  Married  Head of  At     But    Single Married  Married  Head of 
least    less           filing    filing a      least    less           filing    filing a      least     less          filing    filing 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—
   3,000                                              6,000                                           9,000
3,000      3,050 303    303       303      303  6,000      6,050 603    603       603      603  9,000     9,050  903    903       903      903
3,050      3,100 308    308       308      308  6,050      6,100 608    608       608      608  9,050     9,100  908    908       908      908
3,100      3,150 313    313       313      313  6,100      6,150 613    613       613      613  9,100     9,150  913    913       913      913
3,150      3,200 318    318       318      318  6,150      6,200 618    618       618      618  9,150     9,200  918    918       918      918
3,200      3,250 323    323       323      323  6,200      6,250 623    623       623      623  9,200     9,250  923    923       923      923
3,250      3,300 328    328       328      328  6,250      6,300 628    628       628      628  9,250     9,300  928    928       928      928
3,300      3,350 333    333       333      333  6,300      6,350 633    633       633      633  9,300     9,350  933    933       933      933
3,350      3,400 338    338       338      338  6,350      6,400 638    638       638      638  9,350     9,400  938    938       938      938
3,400      3,450 343    343       343      343  6,400      6,450 643    643       643      643  9,400     9,450  943    943       943      943
3,450      3,500 348    348       348      348  6,450      6,500 648    648       648      648  9,450     9,500  948    948       948      948
3,500      3,550 353    353       353      353  6,500      6,550 653    653       653      653  9,500     9,550  953    953       953      953
3,550      3,600 358    358       358      358  6,550      6,600 658    658       658      658  9,550     9,600  958    958       958      958
3,600      3,650 363    363       363      363  6,600      6,650 663    663       663      663  9,600     9,650  963    963       963      963
3,650      3,700 368    368       368      368  6,650      6,700 668    668       668      668  9,650     9,700  968    968       968      968
3,700      3,750 373    373       373      373  6,700      6,750 673    673       673      673  9,700     9,750  973    973       973      973
3,750      3,800 378    378       378      378  6,750      6,800 678    678       678      678  9,750     9,800  978    978       978      978
3,800      3,850 383    383       383      383  6,800      6,850 683    683       683      683  9,800     9,850  983    983       983      983
3,850      3,900 388    388       388      388  6,850      6,900 688    688       688      688  9,850     9,900  988    988       988      988
3,900      3,950 393    393       393      393  6,900      6,950 693    693       693      693  9,900     9,950  993    993       993      993
3,950      4,000 398    398       398      398  6,950      7,000 698    698       698      698  9,950     10,000 998    998       998      998
   4,000                                              7,000                                           10,000
4,000      4,050 403    403       403      403  7,000      7,050 703    703       703      703  10,000    10,050 1,003  1,003     1,003    1,003
4,050      4,100 408    408       408      408  7,050      7,100 708    708       708      708  10,050    10,100 1,008  1,008     1,008    1,008
4,100      4,150 413    413       413      413  7,100      7,150 713    713       713      713  10,100    10,150 1,013  1,013     1,013    1,013
4,150      4,200 418    418       418      418  7,150      7,200 718    718       718      718  10,150    10,200 1,018  1,018     1,018    1,018
4,200      4,250 423    423       423      423  7,200      7,250 723    723       723      723  10,200    10,250 1,023  1,023     1,023    1,023
4,250      4,300 428    428       428      428  7,250      7,300 728    728       728      728  10,250    10,300 1,028  1,028     1,028    1,028
4,300      4,350 433    433       433      433  7,300      7,350 733    733       733      733  10,300    10,350 1,033  1,033     1,033    1,033
4,350      4,400 438    438       438      438  7,350      7,400 738    738       738      738  10,350    10,400 1,038  1,038     1,038    1,038
4,400      4,450 443    443       443      443  7,400      7,450 743    743       743      743  10,400    10,450 1,043  1,043     1,043    1,043
4,450      4,500 448    448       448      448  7,450      7,500 748    748       748      748  10,450    10,500 1,048  1,048     1,048    1,048
4,500      4,550 453    453       453      453  7,500      7,550 753    753       753      753  10,500    10,550 1,053  1,053     1,053    1,053
4,550      4,600 458    458       458      458  7,550      7,600 758    758       758      758  10,550    10,600 1,058  1,058     1,058    1,058
4,600      4,650 463    463       463      463  7,600      7,650 763    763       763      763  10,600    10,650 1,063  1,063     1,063    1,063
4,650      4,700 468    468       468      468  7,650      7,700 768    768       768      768  10,650    10,700 1,068  1,068     1,068    1,068
4,700      4,750 473    473       473      473  7,700      7,750 773    773       773      773  10,700    10,750 1,073  1,073     1,073    1,073
4,750      4,800 478    478       478      478  7,750      7,800 778    778       778      778  10,750    10,800 1,078  1,078     1,078    1,078
4,800      4,850 483    483       483      483  7,800      7,850 783    783       783      783  10,800    10,850 1,083  1,083     1,083    1,083
4,850      4,900 488    488       488      488  7,850      7,900 788    788       788      788  10,850    10,900 1,088  1,088     1,088    1,088
4,900      4,950 493    493       493      493  7,900      7,950 793    793       793      793  10,900    10,950 1,093  1,093     1,093    1,093
4,950      5,000 498    498       498      498  7,950      8,000 798    798       798      798  10,950    11,000 1,098  1,098     1,098    1,098
   5,000                                              8,000                                           11,000
5,000      5,050 503    503       503      503  8,000      8,050 803    803       803      803  11,000    11,050 1,103  1,103     1,103    1,103
5,050      5,100 508    508       508      508  8,050      8,100 808    808       808      808  11,050    11,100 1,109  1,108     1,109    1,108
5,100      5,150 513    513       513      513  8,100      8,150 813    813       813      813  11,100    11,150 1,115  1,113     1,115    1,113
5,150      5,200 518    518       518      518  8,150      8,200 818    818       818      818  11,150    11,200 1,121  1,118     1,121    1,118
5,200      5,250 523    523       523      523  8,200      8,250 823    823       823      823  11,200    11,250 1,127  1,123     1,127    1,123
5,250      5,300 528    528       528      528  8,250      8,300 828    828       828      828  11,250    11,300 1,133  1,128     1,133    1,128
5,300      5,350 533    533       533      533  8,300      8,350 833    833       833      833  11,300    11,350 1,139  1,133     1,139    1,133
5,350      5,400 538    538       538      538  8,350      8,400 838    838       838      838  11,350    11,400 1,145  1,138     1,145    1,138
5,400      5,450 543    543       543      543  8,400      8,450 843    843       843      843  11,400    11,450 1,151  1,143     1,151    1,143
5,450      5,500 548    548       548      548  8,450      8,500 848    848       848      848  11,450    11,500 1,157  1,148     1,157    1,148
5,500      5,550 553    553       553      553  8,500      8,550 853    853       853      853  11,500    11,550 1,163  1,153     1,163    1,153
5,550      5,600 558    558       558      558  8,550      8,600 858    858       858      858  11,550    11,600 1,169  1,158     1,169    1,158
5,600      5,650 563    563       563      563  8,600      8,650 863    863       863      863  11,600    11,650 1,175  1,163     1,175    1,163
5,650      5,700 568    568       568      568  8,650      8,700 868    868       868      868  11,650    11,700 1,181  1,168     1,181    1,168
5,700      5,750 573    573       573      573  8,700      8,750 873    873       873      873  11,700    11,750 1,187  1,173     1,187    1,173
5,750      5,800 578    578       578      578  8,750      8,800 878    878       878      878  11,750    11,800 1,193  1,178     1,193    1,178
5,800      5,850 583    583       583      583  8,800      8,850 883    883       883      883  11,800    11,850 1,199  1,183     1,199    1,183
5,850      5,900 588    588       588      588  8,850      8,900 888    888       888      888  11,850    11,900 1,205  1,188     1,205    1,188
5,900      5,950 593    593       593      593  8,900      8,950 893    893       893      893  11,900    11,950 1,211  1,193     1,211    1,193
5,950      6,000 598    598       598      598  8,950      9,000 898    898       898      898  11,950    12,000 1,217  1,198     1,217    1,198

                                                                                                                                  (Continued)
* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)                                                                                                                      113

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   12,000                                              15,000                                            18,000
12,000     12,050 1,223  1,203     1,223    1,203 15,000     15,050 1,583  1,503     1,583    1,503 18,000    18,050 1,943  1,803     1,943    1,849
12,050     12,100 1,229  1,208     1,229    1,208 15,050     15,100 1,589  1,508     1,589    1,508 18,050    18,100 1,949  1,808     1,949    1,855
12,100     12,150 1,235  1,213     1,235    1,213 15,100     15,150 1,595  1,513     1,595    1,513 18,100    18,150 1,955  1,813     1,955    1,861
12,150     12,200 1,241  1,218     1,241    1,218 15,150     15,200 1,601  1,518     1,601    1,518 18,150    18,200 1,961  1,818     1,961    1,867
12,200     12,250 1,247  1,223     1,247    1,223 15,200     15,250 1,607  1,523     1,607    1,523 18,200    18,250 1,967  1,823     1,967    1,873
12,250     12,300 1,253  1,228     1,253    1,228 15,250     15,300 1,613  1,528     1,613    1,528 18,250    18,300 1,973  1,828     1,973    1,879
12,300     12,350 1,259  1,233     1,259    1,233 15,300     15,350 1,619  1,533     1,619    1,533 18,300    18,350 1,979  1,833     1,979    1,885
12,350     12,400 1,265  1,238     1,265    1,238 15,350     15,400 1,625  1,538     1,625    1,538 18,350    18,400 1,985  1,838     1,985    1,891
12,400     12,450 1,271  1,243     1,271    1,243 15,400     15,450 1,631  1,543     1,631    1,543 18,400    18,450 1,991  1,843     1,991    1,897
12,450     12,500 1,277  1,248     1,277    1,248 15,450     15,500 1,637  1,548     1,637    1,548 18,450    18,500 1,997  1,848     1,997    1,903
12,500     12,550 1,283  1,253     1,283    1,253 15,500     15,550 1,643  1,553     1,643    1,553 18,500    18,550 2,003  1,853     2,003    1,909
12,550     12,600 1,289  1,258     1,289    1,258 15,550     15,600 1,649  1,558     1,649    1,558 18,550    18,600 2,009  1,858     2,009    1,915
12,600     12,650 1,295  1,263     1,295    1,263 15,600     15,650 1,655  1,563     1,655    1,563 18,600    18,650 2,015  1,863     2,015    1,921
12,650     12,700 1,301  1,268     1,301    1,268 15,650     15,700 1,661  1,568     1,661    1,568 18,650    18,700 2,021  1,868     2,021    1,927
12,700     12,750 1,307  1,273     1,307    1,273 15,700     15,750 1,667  1,573     1,667    1,573 18,700    18,750 2,027  1,873     2,027    1,933
12,750     12,800 1,313  1,278     1,313    1,278 15,750     15,800 1,673  1,578     1,673    1,579 18,750    18,800 2,033  1,878     2,033    1,939
12,800     12,850 1,319  1,283     1,319    1,283 15,800     15,850 1,679  1,583     1,679    1,585 18,800    18,850 2,039  1,883     2,039    1,945
12,850     12,900 1,325  1,288     1,325    1,288 15,850     15,900 1,685  1,588     1,685    1,591 18,850    18,900 2,045  1,888     2,045    1,951
12,900     12,950 1,331  1,293     1,331    1,293 15,900     15,950 1,691  1,593     1,691    1,597 18,900    18,950 2,051  1,893     2,051    1,957
12,950     13,000 1,337  1,298     1,337    1,298 15,950     16,000 1,697  1,598     1,697    1,603 18,950    19,000 2,057  1,898     2,057    1,963
   13,000                                              16,000                                            19,000
13,000     13,050 1,343  1,303     1,343    1,303 16,000     16,050 1,703  1,603     1,703    1,609 19,000    19,050 2,063  1,903     2,063    1,969
13,050     13,100 1,349  1,308     1,349    1,308 16,050     16,100 1,709  1,608     1,709    1,615 19,050    19,100 2,069  1,908     2,069    1,975
13,100     13,150 1,355  1,313     1,355    1,313 16,100     16,150 1,715  1,613     1,715    1,621 19,100    19,150 2,075  1,913     2,075    1,981
13,150     13,200 1,361  1,318     1,361    1,318 16,150     16,200 1,721  1,618     1,721    1,627 19,150    19,200 2,081  1,918     2,081    1,987
13,200     13,250 1,367  1,323     1,367    1,323 16,200     16,250 1,727  1,623     1,727    1,633 19,200    19,250 2,087  1,923     2,087    1,993
13,250     13,300 1,373  1,328     1,373    1,328 16,250     16,300 1,733  1,628     1,733    1,639 19,250    19,300 2,093  1,928     2,093    1,999
13,300     13,350 1,379  1,333     1,379    1,333 16,300     16,350 1,739  1,633     1,739    1,645 19,300    19,350 2,099  1,933     2,099    2,005
13,350     13,400 1,385  1,338     1,385    1,338 16,350     16,400 1,745  1,638     1,745    1,651 19,350    19,400 2,105  1,938     2,105    2,011
13,400     13,450 1,391  1,343     1,391    1,343 16,400     16,450 1,751  1,643     1,751    1,657 19,400    19,450 2,111  1,943     2,111    2,017
13,450     13,500 1,397  1,348     1,397    1,348 16,450     16,500 1,757  1,648     1,757    1,663 19,450    19,500 2,117  1,948     2,117    2,023
13,500     13,550 1,403  1,353     1,403    1,353 16,500     16,550 1,763  1,653     1,763    1,669 19,500    19,550 2,123  1,953     2,123    2,029
13,550     13,600 1,409  1,358     1,409    1,358 16,550     16,600 1,769  1,658     1,769    1,675 19,550    19,600 2,129  1,958     2,129    2,035
13,600     13,650 1,415  1,363     1,415    1,363 16,600     16,650 1,775  1,663     1,775    1,681 19,600    19,650 2,135  1,963     2,135    2,041
13,650     13,700 1,421  1,368     1,421    1,368 16,650     16,700 1,781  1,668     1,781    1,687 19,650    19,700 2,141  1,968     2,141    2,047
13,700     13,750 1,427  1,373     1,427    1,373 16,700     16,750 1,787  1,673     1,787    1,693 19,700    19,750 2,147  1,973     2,147    2,053
13,750     13,800 1,433  1,378     1,433    1,378 16,750     16,800 1,793  1,678     1,793    1,699 19,750    19,800 2,153  1,978     2,153    2,059
13,800     13,850 1,439  1,383     1,439    1,383 16,800     16,850 1,799  1,683     1,799    1,705 19,800    19,850 2,159  1,983     2,159    2,065
13,850     13,900 1,445  1,388     1,445    1,388 16,850     16,900 1,805  1,688     1,805    1,711 19,850    19,900 2,165  1,988     2,165    2,071
13,900     13,950 1,451  1,393     1,451    1,393 16,900     16,950 1,811  1,693     1,811    1,717 19,900    19,950 2,171  1,993     2,171    2,077
13,950     14,000 1,457  1,398     1,457    1,398 16,950     17,000 1,817  1,698     1,817    1,723 19,950    20,000 2,177  1,998     2,177    2,083
   14,000                                              17,000                                            20,000
14,000     14,050 1,463  1,403     1,463    1,403 17,000     17,050 1,823  1,703     1,823    1,729 20,000    20,050 2,183  2,003     2,183    2,089
14,050     14,100 1,469  1,408     1,469    1,408 17,050     17,100 1,829  1,708     1,829    1,735 20,050    20,100 2,189  2,008     2,189    2,095
14,100     14,150 1,475  1,413     1,475    1,413 17,100     17,150 1,835  1,713     1,835    1,741 20,100    20,150 2,195  2,013     2,195    2,101
14,150     14,200 1,481  1,418     1,481    1,418 17,150     17,200 1,841  1,718     1,841    1,747 20,150    20,200 2,201  2,018     2,201    2,107
14,200     14,250 1,487  1,423     1,487    1,423 17,200     17,250 1,847  1,723     1,847    1,753 20,200    20,250 2,207  2,023     2,207    2,113
14,250     14,300 1,493  1,428     1,493    1,428 17,250     17,300 1,853  1,728     1,853    1,759 20,250    20,300 2,213  2,028     2,213    2,119
14,300     14,350 1,499  1,433     1,499    1,433 17,300     17,350 1,859  1,733     1,859    1,765 20,300    20,350 2,219  2,033     2,219    2,125
14,350     14,400 1,505  1,438     1,505    1,438 17,350     17,400 1,865  1,738     1,865    1,771 20,350    20,400 2,225  2,038     2,225    2,131
14,400     14,450 1,511  1,443     1,511    1,443 17,400     17,450 1,871  1,743     1,871    1,777 20,400    20,450 2,231  2,043     2,231    2,137
14,450     14,500 1,517  1,448     1,517    1,448 17,450     17,500 1,877  1,748     1,877    1,783 20,450    20,500 2,237  2,048     2,237    2,143
14,500     14,550 1,523  1,453     1,523    1,453 17,500     17,550 1,883  1,753     1,883    1,789 20,500    20,550 2,243  2,053     2,243    2,149
14,550     14,600 1,529  1,458     1,529    1,458 17,550     17,600 1,889  1,758     1,889    1,795 20,550    20,600 2,249  2,058     2,249    2,155
14,600     14,650 1,535  1,463     1,535    1,463 17,600     17,650 1,895  1,763     1,895    1,801 20,600    20,650 2,255  2,063     2,255    2,161
14,650     14,700 1,541  1,468     1,541    1,468 17,650     17,700 1,901  1,768     1,901    1,807 20,650    20,700 2,261  2,068     2,261    2,167
14,700     14,750 1,547  1,473     1,547    1,473 17,700     17,750 1,907  1,773     1,907    1,813 20,700    20,750 2,267  2,073     2,267    2,173
14,750     14,800 1,553  1,478     1,553    1,478 17,750     17,800 1,913  1,778     1,913    1,819 20,750    20,800 2,273  2,078     2,273    2,179
14,800     14,850 1,559  1,483     1,559    1,483 17,800     17,850 1,919  1,783     1,919    1,825 20,800    20,850 2,279  2,083     2,279    2,185
14,850     14,900 1,565  1,488     1,565    1,488 17,850     17,900 1,925  1,788     1,925    1,831 20,850    20,900 2,285  2,088     2,285    2,191
14,900     14,950 1,571  1,493     1,571    1,493 17,900     17,950 1,931  1,793     1,931    1,837 20,900    20,950 2,291  2,093     2,291    2,197
14,950     15,000 1,577  1,498     1,577    1,498 17,950     18,000 1,937  1,798     1,937    1,843 20,950    21,000 2,297  2,098     2,297    2,203

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

114                                                                                                                         Publication 17 (2023)

- 117 -

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   21,000                                              24,000                                            27,000
21,000     21,050 2,303  2,103     2,303    2,209 24,000     24,050 2,663  2,443     2,663    2,569 27,000    27,050 3,023  2,803     3,023    2,929
21,050     21,100 2,309  2,108     2,309    2,215 24,050     24,100 2,669  2,449     2,669    2,575 27,050    27,100 3,029  2,809     3,029    2,935
21,100     21,150 2,315  2,113     2,315    2,221 24,100     24,150 2,675  2,455     2,675    2,581 27,100    27,150 3,035  2,815     3,035    2,941
21,150     21,200 2,321  2,118     2,321    2,227 24,150     24,200 2,681  2,461     2,681    2,587 27,150    27,200 3,041  2,821     3,041    2,947
21,200     21,250 2,327  2,123     2,327    2,233 24,200     24,250 2,687  2,467     2,687    2,593 27,200    27,250 3,047  2,827     3,047    2,953
21,250     21,300 2,333  2,128     2,333    2,239 24,250     24,300 2,693  2,473     2,693    2,599 27,250    27,300 3,053  2,833     3,053    2,959
21,300     21,350 2,339  2,133     2,339    2,245 24,300     24,350 2,699  2,479     2,699    2,605 27,300    27,350 3,059  2,839     3,059    2,965
21,350     21,400 2,345  2,138     2,345    2,251 24,350     24,400 2,705  2,485     2,705    2,611 27,350    27,400 3,065  2,845     3,065    2,971
21,400     21,450 2,351  2,143     2,351    2,257 24,400     24,450 2,711  2,491     2,711    2,617 27,400    27,450 3,071  2,851     3,071    2,977
21,450     21,500 2,357  2,148     2,357    2,263 24,450     24,500 2,717  2,497     2,717    2,623 27,450    27,500 3,077  2,857     3,077    2,983
21,500     21,550 2,363  2,153     2,363    2,269 24,500     24,550 2,723  2,503     2,723    2,629 27,500    27,550 3,083  2,863     3,083    2,989
21,550     21,600 2,369  2,158     2,369    2,275 24,550     24,600 2,729  2,509     2,729    2,635 27,550    27,600 3,089  2,869     3,089    2,995
21,600     21,650 2,375  2,163     2,375    2,281 24,600     24,650 2,735  2,515     2,735    2,641 27,600    27,650 3,095  2,875     3,095    3,001
21,650     21,700 2,381  2,168     2,381    2,287 24,650     24,700 2,741  2,521     2,741    2,647 27,650    27,700 3,101  2,881     3,101    3,007
21,700     21,750 2,387  2,173     2,387    2,293 24,700     24,750 2,747  2,527     2,747    2,653 27,700    27,750 3,107  2,887     3,107    3,013
21,750     21,800 2,393  2,178     2,393    2,299 24,750     24,800 2,753  2,533     2,753    2,659 27,750    27,800 3,113  2,893     3,113    3,019
21,800     21,850 2,399  2,183     2,399    2,305 24,800     24,850 2,759  2,539     2,759    2,665 27,800    27,850 3,119  2,899     3,119    3,025
21,850     21,900 2,405  2,188     2,405    2,311 24,850     24,900 2,765  2,545     2,765    2,671 27,850    27,900 3,125  2,905     3,125    3,031
21,900     21,950 2,411  2,193     2,411    2,317 24,900     24,950 2,771  2,551     2,771    2,677 27,900    27,950 3,131  2,911     3,131    3,037
21,950     22,000 2,417  2,198     2,417    2,323 24,950     25,000 2,777  2,557     2,777    2,683 27,950    28,000 3,137  2,917     3,137    3,043
   22,000                                              25,000                                            28,000
22,000     22,050 2,423  2,203     2,423    2,329 25,000     25,050 2,783  2,563     2,783    2,689 28,000    28,050 3,143  2,923     3,143    3,049
22,050     22,100 2,429  2,209     2,429    2,335 25,050     25,100 2,789  2,569     2,789    2,695 28,050    28,100 3,149  2,929     3,149    3,055
22,100     22,150 2,435  2,215     2,435    2,341 25,100     25,150 2,795  2,575     2,795    2,701 28,100    28,150 3,155  2,935     3,155    3,061
22,150     22,200 2,441  2,221     2,441    2,347 25,150     25,200 2,801  2,581     2,801    2,707 28,150    28,200 3,161  2,941     3,161    3,067
22,200     22,250 2,447  2,227     2,447    2,353 25,200     25,250 2,807  2,587     2,807    2,713 28,200    28,250 3,167  2,947     3,167    3,073
22,250     22,300 2,453  2,233     2,453    2,359 25,250     25,300 2,813  2,593     2,813    2,719 28,250    28,300 3,173  2,953     3,173    3,079
22,300     22,350 2,459  2,239     2,459    2,365 25,300     25,350 2,819  2,599     2,819    2,725 28,300    28,350 3,179  2,959     3,179    3,085
22,350     22,400 2,465  2,245     2,465    2,371 25,350     25,400 2,825  2,605     2,825    2,731 28,350    28,400 3,185  2,965     3,185    3,091
22,400     22,450 2,471  2,251     2,471    2,377 25,400     25,450 2,831  2,611     2,831    2,737 28,400    28,450 3,191  2,971     3,191    3,097
22,450     22,500 2,477  2,257     2,477    2,383 25,450     25,500 2,837  2,617     2,837    2,743 28,450    28,500 3,197  2,977     3,197    3,103
22,500     22,550 2,483  2,263     2,483    2,389 25,500     25,550 2,843  2,623     2,843    2,749 28,500    28,550 3,203  2,983     3,203    3,109
22,550     22,600 2,489  2,269     2,489    2,395 25,550     25,600 2,849  2,629     2,849    2,755 28,550    28,600 3,209  2,989     3,209    3,115
22,600     22,650 2,495  2,275     2,495    2,401 25,600     25,650 2,855  2,635     2,855    2,761 28,600    28,650 3,215  2,995     3,215    3,121
22,650     22,700 2,501  2,281     2,501    2,407 25,650     25,700 2,861  2,641     2,861    2,767 28,650    28,700 3,221  3,001     3,221    3,127
22,700     22,750 2,507  2,287     2,507    2,413 25,700     25,750 2,867  2,647     2,867    2,773 28,700    28,750 3,227  3,007     3,227    3,133
22,750     22,800 2,513  2,293     2,513    2,419 25,750     25,800 2,873  2,653     2,873    2,779 28,750    28,800 3,233  3,013     3,233    3,139
22,800     22,850 2,519  2,299     2,519    2,425 25,800     25,850 2,879  2,659     2,879    2,785 28,800    28,850 3,239  3,019     3,239    3,145
22,850     22,900 2,525  2,305     2,525    2,431 25,850     25,900 2,885  2,665     2,885    2,791 28,850    28,900 3,245  3,025     3,245    3,151
22,900     22,950 2,531  2,311     2,531    2,437 25,900     25,950 2,891  2,671     2,891    2,797 28,900    28,950 3,251  3,031     3,251    3,157
22,950     23,000 2,537  2,317     2,537    2,443 25,950     26,000 2,897  2,677     2,897    2,803 28,950    29,000 3,257  3,037     3,257    3,163
   23,000                                              26,000                                            29,000
23,000     23,050 2,543  2,323     2,543    2,449 26,000     26,050 2,903  2,683     2,903    2,809 29,000    29,050 3,263  3,043     3,263    3,169
23,050     23,100 2,549  2,329     2,549    2,455 26,050     26,100 2,909  2,689     2,909    2,815 29,050    29,100 3,269  3,049     3,269    3,175
23,100     23,150 2,555  2,335     2,555    2,461 26,100     26,150 2,915  2,695     2,915    2,821 29,100    29,150 3,275  3,055     3,275    3,181
23,150     23,200 2,561  2,341     2,561    2,467 26,150     26,200 2,921  2,701     2,921    2,827 29,150    29,200 3,281  3,061     3,281    3,187
23,200     23,250 2,567  2,347     2,567    2,473 26,200     26,250 2,927  2,707     2,927    2,833 29,200    29,250 3,287  3,067     3,287    3,193
23,250     23,300 2,573  2,353     2,573    2,479 26,250     26,300 2,933  2,713     2,933    2,839 29,250    29,300 3,293  3,073     3,293    3,199
23,300     23,350 2,579  2,359     2,579    2,485 26,300     26,350 2,939  2,719     2,939    2,845 29,300    29,350 3,299  3,079     3,299    3,205
23,350     23,400 2,585  2,365     2,585    2,491 26,350     26,400 2,945  2,725     2,945    2,851 29,350    29,400 3,305  3,085     3,305    3,211
23,400     23,450 2,591  2,371     2,591    2,497 26,400     26,450 2,951  2,731     2,951    2,857 29,400    29,450 3,311  3,091     3,311    3,217
23,450     23,500 2,597  2,377     2,597    2,503 26,450     26,500 2,957  2,737     2,957    2,863 29,450    29,500 3,317  3,097     3,317    3,223
23,500     23,550 2,603  2,383     2,603    2,509 26,500     26,550 2,963  2,743     2,963    2,869 29,500    29,550 3,323  3,103     3,323    3,229
23,550     23,600 2,609  2,389     2,609    2,515 26,550     26,600 2,969  2,749     2,969    2,875 29,550    29,600 3,329  3,109     3,329    3,235
23,600     23,650 2,615  2,395     2,615    2,521 26,600     26,650 2,975  2,755     2,975    2,881 29,600    29,650 3,335  3,115     3,335    3,241
23,650     23,700 2,621  2,401     2,621    2,527 26,650     26,700 2,981  2,761     2,981    2,887 29,650    29,700 3,341  3,121     3,341    3,247
23,700     23,750 2,627  2,407     2,627    2,533 26,700     26,750 2,987  2,767     2,987    2,893 29,700    29,750 3,347  3,127     3,347    3,253
23,750     23,800 2,633  2,413     2,633    2,539 26,750     26,800 2,993  2,773     2,993    2,899 29,750    29,800 3,353  3,133     3,353    3,259
23,800     23,850 2,639  2,419     2,639    2,545 26,800     26,850 2,999  2,779     2,999    2,905 29,800    29,850 3,359  3,139     3,359    3,265
23,850     23,900 2,645  2,425     2,645    2,551 26,850     26,900 3,005  2,785     3,005    2,911 29,850    29,900 3,365  3,145     3,365    3,271
23,900     23,950 2,651  2,431     2,651    2,557 26,900     26,950 3,011  2,791     3,011    2,917 29,900    29,950 3,371  3,151     3,371    3,277
23,950     24,000 2,657  2,437     2,657    2,563 26,950     27,000 3,017  2,797     3,017    2,923 29,950    30,000 3,377  3,157     3,377    3,283

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)                                                                                                                          115

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   30,000                                              33,000                                            36,000
30,000     30,050 3,383  3,163     3,383    3,289 33,000     33,050 3,743  3,523     3,743    3,649 36,000    36,050 4,103  3,883     4,103    4,009
30,050     30,100 3,389  3,169     3,389    3,295 33,050     33,100 3,749  3,529     3,749    3,655 36,050    36,100 4,109  3,889     4,109    4,015
30,100     30,150 3,395  3,175     3,395    3,301 33,100     33,150 3,755  3,535     3,755    3,661 36,100    36,150 4,115  3,895     4,115    4,021
30,150     30,200 3,401  3,181     3,401    3,307 33,150     33,200 3,761  3,541     3,761    3,667 36,150    36,200 4,121  3,901     4,121    4,027
30,200     30,250 3,407  3,187     3,407    3,313 33,200     33,250 3,767  3,547     3,767    3,673 36,200    36,250 4,127  3,907     4,127    4,033
30,250     30,300 3,413  3,193     3,413    3,319 33,250     33,300 3,773  3,553     3,773    3,679 36,250    36,300 4,133  3,913     4,133    4,039
30,300     30,350 3,419  3,199     3,419    3,325 33,300     33,350 3,779  3,559     3,779    3,685 36,300    36,350 4,139  3,919     4,139    4,045
30,350     30,400 3,425  3,205     3,425    3,331 33,350     33,400 3,785  3,565     3,785    3,691 36,350    36,400 4,145  3,925     4,145    4,051
30,400     30,450 3,431  3,211     3,431    3,337 33,400     33,450 3,791  3,571     3,791    3,697 36,400    36,450 4,151  3,931     4,151    4,057
30,450     30,500 3,437  3,217     3,437    3,343 33,450     33,500 3,797  3,577     3,797    3,703 36,450    36,500 4,157  3,937     4,157    4,063
30,500     30,550 3,443  3,223     3,443    3,349 33,500     33,550 3,803  3,583     3,803    3,709 36,500    36,550 4,163  3,943     4,163    4,069
30,550     30,600 3,449  3,229     3,449    3,355 33,550     33,600 3,809  3,589     3,809    3,715 36,550    36,600 4,169  3,949     4,169    4,075
30,600     30,650 3,455  3,235     3,455    3,361 33,600     33,650 3,815  3,595     3,815    3,721 36,600    36,650 4,175  3,955     4,175    4,081
30,650     30,700 3,461  3,241     3,461    3,367 33,650     33,700 3,821  3,601     3,821    3,727 36,650    36,700 4,181  3,961     4,181    4,087
30,700     30,750 3,467  3,247     3,467    3,373 33,700     33,750 3,827  3,607     3,827    3,733 36,700    36,750 4,187  3,967     4,187    4,093
30,750     30,800 3,473  3,253     3,473    3,379 33,750     33,800 3,833  3,613     3,833    3,739 36,750    36,800 4,193  3,973     4,193    4,099
30,800     30,850 3,479  3,259     3,479    3,385 33,800     33,850 3,839  3,619     3,839    3,745 36,800    36,850 4,199  3,979     4,199    4,105
30,850     30,900 3,485  3,265     3,485    3,391 33,850     33,900 3,845  3,625     3,845    3,751 36,850    36,900 4,205  3,985     4,205    4,111
30,900     30,950 3,491  3,271     3,491    3,397 33,900     33,950 3,851  3,631     3,851    3,757 36,900    36,950 4,211  3,991     4,211    4,117
30,950     31,000 3,497  3,277     3,497    3,403 33,950     34,000 3,857  3,637     3,857    3,763 36,950    37,000 4,217  3,997     4,217    4,123
   31,000                                              34,000                                            37,000
31,000     31,050 3,503  3,283     3,503    3,409 34,000     34,050 3,863  3,643     3,863    3,769 37,000    37,050 4,223  4,003     4,223    4,129
31,050     31,100 3,509  3,289     3,509    3,415 34,050     34,100 3,869  3,649     3,869    3,775 37,050    37,100 4,229  4,009     4,229    4,135
31,100     31,150 3,515  3,295     3,515    3,421 34,100     34,150 3,875  3,655     3,875    3,781 37,100    37,150 4,235  4,015     4,235    4,141
31,150     31,200 3,521  3,301     3,521    3,427 34,150     34,200 3,881  3,661     3,881    3,787 37,150    37,200 4,241  4,021     4,241    4,147
31,200     31,250 3,527  3,307     3,527    3,433 34,200     34,250 3,887  3,667     3,887    3,793 37,200    37,250 4,247  4,027     4,247    4,153
31,250     31,300 3,533  3,313     3,533    3,439 34,250     34,300 3,893  3,673     3,893    3,799 37,250    37,300 4,253  4,033     4,253    4,159
31,300     31,350 3,539  3,319     3,539    3,445 34,300     34,350 3,899  3,679     3,899    3,805 37,300    37,350 4,259  4,039     4,259    4,165
31,350     31,400 3,545  3,325     3,545    3,451 34,350     34,400 3,905  3,685     3,905    3,811 37,350    37,400 4,265  4,045     4,265    4,171
31,400     31,450 3,551  3,331     3,551    3,457 34,400     34,450 3,911  3,691     3,911    3,817 37,400    37,450 4,271  4,051     4,271    4,177
31,450     31,500 3,557  3,337     3,557    3,463 34,450     34,500 3,917  3,697     3,917    3,823 37,450    37,500 4,277  4,057     4,277    4,183
31,500     31,550 3,563  3,343     3,563    3,469 34,500     34,550 3,923  3,703     3,923    3,829 37,500    37,550 4,283  4,063     4,283    4,189
31,550     31,600 3,569  3,349     3,569    3,475 34,550     34,600 3,929  3,709     3,929    3,835 37,550    37,600 4,289  4,069     4,289    4,195
31,600     31,650 3,575  3,355     3,575    3,481 34,600     34,650 3,935  3,715     3,935    3,841 37,600    37,650 4,295  4,075     4,295    4,201
31,650     31,700 3,581  3,361     3,581    3,487 34,650     34,700 3,941  3,721     3,941    3,847 37,650    37,700 4,301  4,081     4,301    4,207
31,700     31,750 3,587  3,367     3,587    3,493 34,700     34,750 3,947  3,727     3,947    3,853 37,700    37,750 4,307  4,087     4,307    4,213
31,750     31,800 3,593  3,373     3,593    3,499 34,750     34,800 3,953  3,733     3,953    3,859 37,750    37,800 4,313  4,093     4,313    4,219
31,800     31,850 3,599  3,379     3,599    3,505 34,800     34,850 3,959  3,739     3,959    3,865 37,800    37,850 4,319  4,099     4,319    4,225
31,850     31,900 3,605  3,385     3,605    3,511 34,850     34,900 3,965  3,745     3,965    3,871 37,850    37,900 4,325  4,105     4,325    4,231
31,900     31,950 3,611  3,391     3,611    3,517 34,900     34,950 3,971  3,751     3,971    3,877 37,900    37,950 4,331  4,111     4,331    4,237
31,950     32,000 3,617  3,397     3,617    3,523 34,950     35,000 3,977  3,757     3,977    3,883 37,950    38,000 4,337  4,117     4,337    4,243
   32,000                                              35,000                                            38,000
32,000     32,050 3,623  3,403     3,623    3,529 35,000     35,050 3,983  3,763     3,983    3,889 38,000    38,050 4,343  4,123     4,343    4,249
32,050     32,100 3,629  3,409     3,629    3,535 35,050     35,100 3,989  3,769     3,989    3,895 38,050    38,100 4,349  4,129     4,349    4,255
32,100     32,150 3,635  3,415     3,635    3,541 35,100     35,150 3,995  3,775     3,995    3,901 38,100    38,150 4,355  4,135     4,355    4,261
32,150     32,200 3,641  3,421     3,641    3,547 35,150     35,200 4,001  3,781     4,001    3,907 38,150    38,200 4,361  4,141     4,361    4,267
32,200     32,250 3,647  3,427     3,647    3,553 35,200     35,250 4,007  3,787     4,007    3,913 38,200    38,250 4,367  4,147     4,367    4,273
32,250     32,300 3,653  3,433     3,653    3,559 35,250     35,300 4,013  3,793     4,013    3,919 38,250    38,300 4,373  4,153     4,373    4,279
32,300     32,350 3,659  3,439     3,659    3,565 35,300     35,350 4,019  3,799     4,019    3,925 38,300    38,350 4,379  4,159     4,379    4,285
32,350     32,400 3,665  3,445     3,665    3,571 35,350     35,400 4,025  3,805     4,025    3,931 38,350    38,400 4,385  4,165     4,385    4,291
32,400     32,450 3,671  3,451     3,671    3,577 35,400     35,450 4,031  3,811     4,031    3,937 38,400    38,450 4,391  4,171     4,391    4,297
32,450     32,500 3,677  3,457     3,677    3,583 35,450     35,500 4,037  3,817     4,037    3,943 38,450    38,500 4,397  4,177     4,397    4,303
32,500     32,550 3,683  3,463     3,683    3,589 35,500     35,550 4,043  3,823     4,043    3,949 38,500    38,550 4,403  4,183     4,403    4,309
32,550     32,600 3,689  3,469     3,689    3,595 35,550     35,600 4,049  3,829     4,049    3,955 38,550    38,600 4,409  4,189     4,409    4,315
32,600     32,650 3,695  3,475     3,695    3,601 35,600     35,650 4,055  3,835     4,055    3,961 38,600    38,650 4,415  4,195     4,415    4,321
32,650     32,700 3,701  3,481     3,701    3,607 35,650     35,700 4,061  3,841     4,061    3,967 38,650    38,700 4,421  4,201     4,421    4,327
32,700     32,750 3,707  3,487     3,707    3,613 35,700     35,750 4,067  3,847     4,067    3,973 38,700    38,750 4,427  4,207     4,427    4,333
32,750     32,800 3,713  3,493     3,713    3,619 35,750     35,800 4,073  3,853     4,073    3,979 38,750    38,800 4,433  4,213     4,433    4,339
32,800     32,850 3,719  3,499     3,719    3,625 35,800     35,850 4,079  3,859     4,079    3,985 38,800    38,850 4,439  4,219     4,439    4,345
32,850     32,900 3,725  3,505     3,725    3,631 35,850     35,900 4,085  3,865     4,085    3,991 38,850    38,900 4,445  4,225     4,445    4,351
32,900     32,950 3,731  3,511     3,731    3,637 35,900     35,950 4,091  3,871     4,091    3,997 38,900    38,950 4,451  4,231     4,451    4,357
32,950     33,000 3,737  3,517     3,737    3,643 35,950     36,000 4,097  3,877     4,097    4,003 38,950    39,000 4,457  4,237     4,457    4,363

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

116                                                                                                                         Publication 17 (2023)

- 119 -

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   39,000                                              42,000                                            45,000
39,000     39,050 4,463  4,243     4,463    4,369 42,000     42,050 4,823  4,603     4,823    4,729 45,000    45,050 5,213  4,963     5,213    5,089
39,050     39,100 4,469  4,249     4,469    4,375 42,050     42,100 4,829  4,609     4,829    4,735 45,050    45,100 5,224  4,969     5,224    5,095
39,100     39,150 4,475  4,255     4,475    4,381 42,100     42,150 4,835  4,615     4,835    4,741 45,100    45,150 5,235  4,975     5,235    5,101
39,150     39,200 4,481  4,261     4,481    4,387 42,150     42,200 4,841  4,621     4,841    4,747 45,150    45,200 5,246  4,981     5,246    5,107
39,200     39,250 4,487  4,267     4,487    4,393 42,200     42,250 4,847  4,627     4,847    4,753 45,200    45,250 5,257  4,987     5,257    5,113
39,250     39,300 4,493  4,273     4,493    4,399 42,250     42,300 4,853  4,633     4,853    4,759 45,250    45,300 5,268  4,993     5,268    5,119
39,300     39,350 4,499  4,279     4,499    4,405 42,300     42,350 4,859  4,639     4,859    4,765 45,300    45,350 5,279  4,999     5,279    5,125
39,350     39,400 4,505  4,285     4,505    4,411 42,350     42,400 4,865  4,645     4,865    4,771 45,350    45,400 5,290  5,005     5,290    5,131
39,400     39,450 4,511  4,291     4,511    4,417 42,400     42,450 4,871  4,651     4,871    4,777 45,400    45,450 5,301  5,011     5,301    5,137
39,450     39,500 4,517  4,297     4,517    4,423 42,450     42,500 4,877  4,657     4,877    4,783 45,450    45,500 5,312  5,017     5,312    5,143
39,500     39,550 4,523  4,303     4,523    4,429 42,500     42,550 4,883  4,663     4,883    4,789 45,500    45,550 5,323  5,023     5,323    5,149
39,550     39,600 4,529  4,309     4,529    4,435 42,550     42,600 4,889  4,669     4,889    4,795 45,550    45,600 5,334  5,029     5,334    5,155
39,600     39,650 4,535  4,315     4,535    4,441 42,600     42,650 4,895  4,675     4,895    4,801 45,600    45,650 5,345  5,035     5,345    5,161
39,650     39,700 4,541  4,321     4,541    4,447 42,650     42,700 4,901  4,681     4,901    4,807 45,650    45,700 5,356  5,041     5,356    5,167
39,700     39,750 4,547  4,327     4,547    4,453 42,700     42,750 4,907  4,687     4,907    4,813 45,700    45,750 5,367  5,047     5,367    5,173
39,750     39,800 4,553  4,333     4,553    4,459 42,750     42,800 4,913  4,693     4,913    4,819 45,750    45,800 5,378  5,053     5,378    5,179
39,800     39,850 4,559  4,339     4,559    4,465 42,800     42,850 4,919  4,699     4,919    4,825 45,800    45,850 5,389  5,059     5,389    5,185
39,850     39,900 4,565  4,345     4,565    4,471 42,850     42,900 4,925  4,705     4,925    4,831 45,850    45,900 5,400  5,065     5,400    5,191
39,900     39,950 4,571  4,351     4,571    4,477 42,900     42,950 4,931  4,711     4,931    4,837 45,900    45,950 5,411  5,071     5,411    5,197
39,950     40,000 4,577  4,357     4,577    4,483 42,950     43,000 4,937  4,717     4,937    4,843 45,950    46,000 5,422  5,077     5,422    5,203
   40,000                                              43,000                                            46,000
40,000     40,050 4,583  4,363     4,583    4,489 43,000     43,050 4,943  4,723     4,943    4,849 46,000    46,050 5,433  5,083     5,433    5,209
40,050     40,100 4,589  4,369     4,589    4,495 43,050     43,100 4,949  4,729     4,949    4,855 46,050    46,100 5,444  5,089     5,444    5,215
40,100     40,150 4,595  4,375     4,595    4,501 43,100     43,150 4,955  4,735     4,955    4,861 46,100    46,150 5,455  5,095     5,455    5,221
40,150     40,200 4,601  4,381     4,601    4,507 43,150     43,200 4,961  4,741     4,961    4,867 46,150    46,200 5,466  5,101     5,466    5,227
40,200     40,250 4,607  4,387     4,607    4,513 43,200     43,250 4,967  4,747     4,967    4,873 46,200    46,250 5,477  5,107     5,477    5,233
40,250     40,300 4,613  4,393     4,613    4,519 43,250     43,300 4,973  4,753     4,973    4,879 46,250    46,300 5,488  5,113     5,488    5,239
40,300     40,350 4,619  4,399     4,619    4,525 43,300     43,350 4,979  4,759     4,979    4,885 46,300    46,350 5,499  5,119     5,499    5,245
40,350     40,400 4,625  4,405     4,625    4,531 43,350     43,400 4,985  4,765     4,985    4,891 46,350    46,400 5,510  5,125     5,510    5,251
40,400     40,450 4,631  4,411     4,631    4,537 43,400     43,450 4,991  4,771     4,991    4,897 46,400    46,450 5,521  5,131     5,521    5,257
40,450     40,500 4,637  4,417     4,637    4,543 43,450     43,500 4,997  4,777     4,997    4,903 46,450    46,500 5,532  5,137     5,532    5,263
40,500     40,550 4,643  4,423     4,643    4,549 43,500     43,550 5,003  4,783     5,003    4,909 46,500    46,550 5,543  5,143     5,543    5,269
40,550     40,600 4,649  4,429     4,649    4,555 43,550     43,600 5,009  4,789     5,009    4,915 46,550    46,600 5,554  5,149     5,554    5,275
40,600     40,650 4,655  4,435     4,655    4,561 43,600     43,650 5,015  4,795     5,015    4,921 46,600    46,650 5,565  5,155     5,565    5,281
40,650     40,700 4,661  4,441     4,661    4,567 43,650     43,700 5,021  4,801     5,021    4,927 46,650    46,700 5,576  5,161     5,576    5,287
40,700     40,750 4,667  4,447     4,667    4,573 43,700     43,750 5,027  4,807     5,027    4,933 46,700    46,750 5,587  5,167     5,587    5,293
40,750     40,800 4,673  4,453     4,673    4,579 43,750     43,800 5,033  4,813     5,033    4,939 46,750    46,800 5,598  5,173     5,598    5,299
40,800     40,850 4,679  4,459     4,679    4,585 43,800     43,850 5,039  4,819     5,039    4,945 46,800    46,850 5,609  5,179     5,609    5,305
40,850     40,900 4,685  4,465     4,685    4,591 43,850     43,900 5,045  4,825     5,045    4,951 46,850    46,900 5,620  5,185     5,620    5,311
40,900     40,950 4,691  4,471     4,691    4,597 43,900     43,950 5,051  4,831     5,051    4,957 46,900    46,950 5,631  5,191     5,631    5,317
40,950     41,000 4,697  4,477     4,697    4,603 43,950     44,000 5,057  4,837     5,057    4,963 46,950    47,000 5,642  5,197     5,642    5,323
   41,000                                              44,000                                            47,000
41,000     41,050 4,703  4,483     4,703    4,609 44,000     44,050 5,063  4,843     5,063    4,969 47,000    47,050 5,653  5,203     5,653    5,329
41,050     41,100 4,709  4,489     4,709    4,615 44,050     44,100 5,069  4,849     5,069    4,975 47,050    47,100 5,664  5,209     5,664    5,335
41,100     41,150 4,715  4,495     4,715    4,621 44,100     44,150 5,075  4,855     5,075    4,981 47,100    47,150 5,675  5,215     5,675    5,341
41,150     41,200 4,721  4,501     4,721    4,627 44,150     44,200 5,081  4,861     5,081    4,987 47,150    47,200 5,686  5,221     5,686    5,347
41,200     41,250 4,727  4,507     4,727    4,633 44,200     44,250 5,087  4,867     5,087    4,993 47,200    47,250 5,697  5,227     5,697    5,353
41,250     41,300 4,733  4,513     4,733    4,639 44,250     44,300 5,093  4,873     5,093    4,999 47,250    47,300 5,708  5,233     5,708    5,359
41,300     41,350 4,739  4,519     4,739    4,645 44,300     44,350 5,099  4,879     5,099    5,005 47,300    47,350 5,719  5,239     5,719    5,365
41,350     41,400 4,745  4,525     4,745    4,651 44,350     44,400 5,105  4,885     5,105    5,011 47,350    47,400 5,730  5,245     5,730    5,371
41,400     41,450 4,751  4,531     4,751    4,657 44,400     44,450 5,111  4,891     5,111    5,017 47,400    47,450 5,741  5,251     5,741    5,377
41,450     41,500 4,757  4,537     4,757    4,663 44,450     44,500 5,117  4,897     5,117    5,023 47,450    47,500 5,752  5,257     5,752    5,383
41,500     41,550 4,763  4,543     4,763    4,669 44,500     44,550 5,123  4,903     5,123    5,029 47,500    47,550 5,763  5,263     5,763    5,389
41,550     41,600 4,769  4,549     4,769    4,675 44,550     44,600 5,129  4,909     5,129    5,035 47,550    47,600 5,774  5,269     5,774    5,395
41,600     41,650 4,775  4,555     4,775    4,681 44,600     44,650 5,135  4,915     5,135    5,041 47,600    47,650 5,785  5,275     5,785    5,401
41,650     41,700 4,781  4,561     4,781    4,687 44,650     44,700 5,141  4,921     5,141    5,047 47,650    47,700 5,796  5,281     5,796    5,407
41,700     41,750 4,787  4,567     4,787    4,693 44,700     44,750 5,147  4,927     5,147    5,053 47,700    47,750 5,807  5,287     5,807    5,413
41,750     41,800 4,793  4,573     4,793    4,699 44,750     44,800 5,158  4,933     5,158    5,059 47,750    47,800 5,818  5,293     5,818    5,419
41,800     41,850 4,799  4,579     4,799    4,705 44,800     44,850 5,169  4,939     5,169    5,065 47,800    47,850 5,829  5,299     5,829    5,425
41,850     41,900 4,805  4,585     4,805    4,711 44,850     44,900 5,180  4,945     5,180    5,071 47,850    47,900 5,840  5,305     5,840    5,431
41,900     41,950 4,811  4,591     4,811    4,717 44,900     44,950 5,191  4,951     5,191    5,077 47,900    47,950 5,851  5,311     5,851    5,437
41,950     42,000 4,817  4,597     4,817    4,723 44,950     45,000 5,202  4,957     5,202    5,083 47,950    48,000 5,862  5,317     5,862    5,443

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)                                                                                                                          117

- 120 -

Page 120 of 142                  Fileid: … ations/p17/2023/a/xml/cycle02/source                                    9:53 - 19-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   48,000                                              51,000                                            54,000
48,000     48,050 5,873  5,323     5,873    5,449 51,000     51,050 6,533  5,683     6,533    5,809 54,000    54,050 7,193  6,043     7,193    6,169
48,050     48,100 5,884  5,329     5,884    5,455 51,050     51,100 6,544  5,689     6,544    5,815 54,050    54,100 7,204  6,049     7,204    6,175
48,100     48,150 5,895  5,335     5,895    5,461 51,100     51,150 6,555  5,695     6,555    5,821 54,100    54,150 7,215  6,055     7,215    6,181
48,150     48,200 5,906  5,341     5,906    5,467 51,150     51,200 6,566  5,701     6,566    5,827 54,150    54,200 7,226  6,061     7,226    6,187
48,200     48,250 5,917  5,347     5,917    5,473 51,200     51,250 6,577  5,707     6,577    5,833 54,200    54,250 7,237  6,067     7,237    6,193
48,250     48,300 5,928  5,353     5,928    5,479 51,250     51,300 6,588  5,713     6,588    5,839 54,250    54,300 7,248  6,073     7,248    6,199
48,300     48,350 5,939  5,359     5,939    5,485 51,300     51,350 6,599  5,719     6,599    5,845 54,300    54,350 7,259  6,079     7,259    6,205
48,350     48,400 5,950  5,365     5,950    5,491 51,350     51,400 6,610  5,725     6,610    5,851 54,350    54,400 7,270  6,085     7,270    6,211
48,400     48,450 5,961  5,371     5,961    5,497 51,400     51,450 6,621  5,731     6,621    5,857 54,400    54,450 7,281  6,091     7,281    6,217
48,450     48,500 5,972  5,377     5,972    5,503 51,450     51,500 6,632  5,737     6,632    5,863 54,450    54,500 7,292  6,097     7,292    6,223
48,500     48,550 5,983  5,383     5,983    5,509 51,500     51,550 6,643  5,743     6,643    5,869 54,500    54,550 7,303  6,103     7,303    6,229
48,550     48,600 5,994  5,389     5,994    5,515 51,550     51,600 6,654  5,749     6,654    5,875 54,550    54,600 7,314  6,109     7,314    6,235
48,600     48,650 6,005  5,395     6,005    5,521 51,600     51,650 6,665  5,755     6,665    5,881 54,600    54,650 7,325  6,115     7,325    6,241
48,650     48,700 6,016  5,401     6,016    5,527 51,650     51,700 6,676  5,761     6,676    5,887 54,650    54,700 7,336  6,121     7,336    6,247
48,700     48,750 6,027  5,407     6,027    5,533 51,700     51,750 6,687  5,767     6,687    5,893 54,700    54,750 7,347  6,127     7,347    6,253
48,750     48,800 6,038  5,413     6,038    5,539 51,750     51,800 6,698  5,773     6,698    5,899 54,750    54,800 7,358  6,133     7,358    6,259
48,800     48,850 6,049  5,419     6,049    5,545 51,800     51,850 6,709  5,779     6,709    5,905 54,800    54,850 7,369  6,139     7,369    6,265
48,850     48,900 6,060  5,425     6,060    5,551 51,850     51,900 6,720  5,785     6,720    5,911 54,850    54,900 7,380  6,145     7,380    6,271
48,900     48,950 6,071  5,431     6,071    5,557 51,900     51,950 6,731  5,791     6,731    5,917 54,900    54,950 7,391  6,151     7,391    6,277
48,950     49,000 6,082  5,437     6,082    5,563 51,950     52,000 6,742  5,797     6,742    5,923 54,950    55,000 7,402  6,157     7,402    6,283
   49,000                                              52,000                                            55,000
49,000     49,050 6,093  5,443     6,093    5,569 52,000     52,050 6,753  5,803     6,753    5,929 55,000    55,050 7,413  6,163     7,413    6,289
49,050     49,100 6,104  5,449     6,104    5,575 52,050     52,100 6,764  5,809     6,764    5,935 55,050    55,100 7,424  6,169     7,424    6,295
49,100     49,150 6,115  5,455     6,115    5,581 52,100     52,150 6,775  5,815     6,775    5,941 55,100    55,150 7,435  6,175     7,435    6,301
49,150     49,200 6,126  5,461     6,126    5,587 52,150     52,200 6,786  5,821     6,786    5,947 55,150    55,200 7,446  6,181     7,446    6,307
49,200     49,250 6,137  5,467     6,137    5,593 52,200     52,250 6,797  5,827     6,797    5,953 55,200    55,250 7,457  6,187     7,457    6,313
49,250     49,300 6,148  5,473     6,148    5,599 52,250     52,300 6,808  5,833     6,808    5,959 55,250    55,300 7,468  6,193     7,468    6,319
49,300     49,350 6,159  5,479     6,159    5,605 52,300     52,350 6,819  5,839     6,819    5,965 55,300    55,350 7,479  6,199     7,479    6,325
49,350     49,400 6,170  5,485     6,170    5,611 52,350     52,400 6,830  5,845     6,830    5,971 55,350    55,400 7,490  6,205     7,490    6,331
49,400     49,450 6,181  5,491     6,181    5,617 52,400     52,450 6,841  5,851     6,841    5,977 55,400    55,450 7,501  6,211     7,501    6,337
49,450     49,500 6,192  5,497     6,192    5,623 52,450     52,500 6,852  5,857     6,852    5,983 55,450    55,500 7,512  6,217     7,512    6,343
49,500     49,550 6,203  5,503     6,203    5,629 52,500     52,550 6,863  5,863     6,863    5,989 55,500    55,550 7,523  6,223     7,523    6,349
49,550     49,600 6,214  5,509     6,214    5,635 52,550     52,600 6,874  5,869     6,874    5,995 55,550    55,600 7,534  6,229     7,534    6,355
49,600     49,650 6,225  5,515     6,225    5,641 52,600     52,650 6,885  5,875     6,885    6,001 55,600    55,650 7,545  6,235     7,545    6,361
49,650     49,700 6,236  5,521     6,236    5,647 52,650     52,700 6,896  5,881     6,896    6,007 55,650    55,700 7,556  6,241     7,556    6,367
49,700     49,750 6,247  5,527     6,247    5,653 52,700     52,750 6,907  5,887     6,907    6,013 55,700    55,750 7,567  6,247     7,567    6,373
49,750     49,800 6,258  5,533     6,258    5,659 52,750     52,800 6,918  5,893     6,918    6,019 55,750    55,800 7,578  6,253     7,578    6,379
49,800     49,850 6,269  5,539     6,269    5,665 52,800     52,850 6,929  5,899     6,929    6,025 55,800    55,850 7,589  6,259     7,589    6,385
49,850     49,900 6,280  5,545     6,280    5,671 52,850     52,900 6,940  5,905     6,940    6,031 55,850    55,900 7,600  6,265     7,600    6,391
49,900     49,950 6,291  5,551     6,291    5,677 52,900     52,950 6,951  5,911     6,951    6,037 55,900    55,950 7,611  6,271     7,611    6,397
49,950     50,000 6,302  5,557     6,302    5,683 52,950     53,000 6,962  5,917     6,962    6,043 55,950    56,000 7,622  6,277     7,622    6,403
   50,000                                              53,000                                            56,000
50,000     50,050 6,313  5,563     6,313    5,689 53,000     53,050 6,973  5,923     6,973    6,049 56,000    56,050 7,633  6,283     7,633    6,409
50,050     50,100 6,324  5,569     6,324    5,695 53,050     53,100 6,984  5,929     6,984    6,055 56,050    56,100 7,644  6,289     7,644    6,415
50,100     50,150 6,335  5,575     6,335    5,701 53,100     53,150 6,995  5,935     6,995    6,061 56,100    56,150 7,655  6,295     7,655    6,421
50,150     50,200 6,346  5,581     6,346    5,707 53,150     53,200 7,006  5,941     7,006    6,067 56,150    56,200 7,666  6,301     7,666    6,427
50,200     50,250 6,357  5,587     6,357    5,713 53,200     53,250 7,017  5,947     7,017    6,073 56,200    56,250 7,677  6,307     7,677    6,433
50,250     50,300 6,368  5,593     6,368    5,719 53,250     53,300 7,028  5,953     7,028    6,079 56,250    56,300 7,688  6,313     7,688    6,439
50,300     50,350 6,379  5,599     6,379    5,725 53,300     53,350 7,039  5,959     7,039    6,085 56,300    56,350 7,699  6,319     7,699    6,445
50,350     50,400 6,390  5,605     6,390    5,731 53,350     53,400 7,050  5,965     7,050    6,091 56,350    56,400 7,710  6,325     7,710    6,451
50,400     50,450 6,401  5,611     6,401    5,737 53,400     53,450 7,061  5,971     7,061    6,097 56,400    56,450 7,721  6,331     7,721    6,457
50,450     50,500 6,412  5,617     6,412    5,743 53,450     53,500 7,072  5,977     7,072    6,103 56,450    56,500 7,732  6,337     7,732    6,463
50,500     50,550 6,423  5,623     6,423    5,749 53,500     53,550 7,083  5,983     7,083    6,109 56,500    56,550 7,743  6,343     7,743    6,469
50,550     50,600 6,434  5,629     6,434    5,755 53,550     53,600 7,094  5,989     7,094    6,115 56,550    56,600 7,754  6,349     7,754    6,475
50,600     50,650 6,445  5,635     6,445    5,761 53,600     53,650 7,105  5,995     7,105    6,121 56,600    56,650 7,765  6,355     7,765    6,481
50,650     50,700 6,456  5,641     6,456    5,767 53,650     53,700 7,116  6,001     7,116    6,127 56,650    56,700 7,776  6,361     7,776    6,487
50,700     50,750 6,467  5,647     6,467    5,773 53,700     53,750 7,127  6,007     7,127    6,133 56,700    56,750 7,787  6,367     7,787    6,493
50,750     50,800 6,478  5,653     6,478    5,779 53,750     53,800 7,138  6,013     7,138    6,139 56,750    56,800 7,798  6,373     7,798    6,499
50,800     50,850 6,489  5,659     6,489    5,785 53,800     53,850 7,149  6,019     7,149    6,145 56,800    56,850 7,809  6,379     7,809    6,505
50,850     50,900 6,500  5,665     6,500    5,791 53,850     53,900 7,160  6,025     7,160    6,151 56,850    56,900 7,820  6,385     7,820    6,511
50,900     50,950 6,511  5,671     6,511    5,797 53,900     53,950 7,171  6,031     7,171    6,157 56,900    56,950 7,831  6,391     7,831    6,517
50,950     51,000 6,522  5,677     6,522    5,803 53,950     54,000 7,182  6,037     7,182    6,163 56,950    57,000 7,842  6,397     7,842    6,523

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

118                                                                                                                         Publication 17 (2023)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   57,000                                              60,000                                            63,000
57,000     57,050 7,853  6,403     7,853    6,529 60,000     60,050 8,513  6,763     8,513    6,907 63,000    63,050 9,173  7,123     9,173    7,567
57,050     57,100 7,864  6,409     7,864    6,535 60,050     60,100 8,524  6,769     8,524    6,918 63,050    63,100 9,184  7,129     9,184    7,578
57,100     57,150 7,875  6,415     7,875    6,541 60,100     60,150 8,535  6,775     8,535    6,929 63,100    63,150 9,195  7,135     9,195    7,589
57,150     57,200 7,886  6,421     7,886    6,547 60,150     60,200 8,546  6,781     8,546    6,940 63,150    63,200 9,206  7,141     9,206    7,600
57,200     57,250 7,897  6,427     7,897    6,553 60,200     60,250 8,557  6,787     8,557    6,951 63,200    63,250 9,217  7,147     9,217    7,611
57,250     57,300 7,908  6,433     7,908    6,559 60,250     60,300 8,568  6,793     8,568    6,962 63,250    63,300 9,228  7,153     9,228    7,622
57,300     57,350 7,919  6,439     7,919    6,565 60,300     60,350 8,579  6,799     8,579    6,973 63,300    63,350 9,239  7,159     9,239    7,633
57,350     57,400 7,930  6,445     7,930    6,571 60,350     60,400 8,590  6,805     8,590    6,984 63,350    63,400 9,250  7,165     9,250    7,644
57,400     57,450 7,941  6,451     7,941    6,577 60,400     60,450 8,601  6,811     8,601    6,995 63,400    63,450 9,261  7,171     9,261    7,655
57,450     57,500 7,952  6,457     7,952    6,583 60,450     60,500 8,612  6,817     8,612    7,006 63,450    63,500 9,272  7,177     9,272    7,666
57,500     57,550 7,963  6,463     7,963    6,589 60,500     60,550 8,623  6,823     8,623    7,017 63,500    63,550 9,283  7,183     9,283    7,677
57,550     57,600 7,974  6,469     7,974    6,595 60,550     60,600 8,634  6,829     8,634    7,028 63,550    63,600 9,294  7,189     9,294    7,688
57,600     57,650 7,985  6,475     7,985    6,601 60,600     60,650 8,645  6,835     8,645    7,039 63,600    63,650 9,305  7,195     9,305    7,699
57,650     57,700 7,996  6,481     7,996    6,607 60,650     60,700 8,656  6,841     8,656    7,050 63,650    63,700 9,316  7,201     9,316    7,710
57,700     57,750 8,007  6,487     8,007    6,613 60,700     60,750 8,667  6,847     8,667    7,061 63,700    63,750 9,327  7,207     9,327    7,721
57,750     57,800 8,018  6,493     8,018    6,619 60,750     60,800 8,678  6,853     8,678    7,072 63,750    63,800 9,338  7,213     9,338    7,732
57,800     57,850 8,029  6,499     8,029    6,625 60,800     60,850 8,689  6,859     8,689    7,083 63,800    63,850 9,349  7,219     9,349    7,743
57,850     57,900 8,040  6,505     8,040    6,631 60,850     60,900 8,700  6,865     8,700    7,094 63,850    63,900 9,360  7,225     9,360    7,754
57,900     57,950 8,051  6,511     8,051    6,637 60,900     60,950 8,711  6,871     8,711    7,105 63,900    63,950 9,371  7,231     9,371    7,765
57,950     58,000 8,062  6,517     8,062    6,643 60,950     61,000 8,722  6,877     8,722    7,116 63,950    64,000 9,382  7,237     9,382    7,776
   58,000                                              61,000                                            64,000
58,000     58,050 8,073  6,523     8,073    6,649 61,000     61,050 8,733  6,883     8,733    7,127 64,000    64,050 9,393  7,243     9,393    7,787
58,050     58,100 8,084  6,529     8,084    6,655 61,050     61,100 8,744  6,889     8,744    7,138 64,050    64,100 9,404  7,249     9,404    7,798
58,100     58,150 8,095  6,535     8,095    6,661 61,100     61,150 8,755  6,895     8,755    7,149 64,100    64,150 9,415  7,255     9,415    7,809
58,150     58,200 8,106  6,541     8,106    6,667 61,150     61,200 8,766  6,901     8,766    7,160 64,150    64,200 9,426  7,261     9,426    7,820
58,200     58,250 8,117  6,547     8,117    6,673 61,200     61,250 8,777  6,907     8,777    7,171 64,200    64,250 9,437  7,267     9,437    7,831
58,250     58,300 8,128  6,553     8,128    6,679 61,250     61,300 8,788  6,913     8,788    7,182 64,250    64,300 9,448  7,273     9,448    7,842
58,300     58,350 8,139  6,559     8,139    6,685 61,300     61,350 8,799  6,919     8,799    7,193 64,300    64,350 9,459  7,279     9,459    7,853
58,350     58,400 8,150  6,565     8,150    6,691 61,350     61,400 8,810  6,925     8,810    7,204 64,350    64,400 9,470  7,285     9,470    7,864
58,400     58,450 8,161  6,571     8,161    6,697 61,400     61,450 8,821  6,931     8,821    7,215 64,400    64,450 9,481  7,291     9,481    7,875
58,450     58,500 8,172  6,577     8,172    6,703 61,450     61,500 8,832  6,937     8,832    7,226 64,450    64,500 9,492  7,297     9,492    7,886
58,500     58,550 8,183  6,583     8,183    6,709 61,500     61,550 8,843  6,943     8,843    7,237 64,500    64,550 9,503  7,303     9,503    7,897
58,550     58,600 8,194  6,589     8,194    6,715 61,550     61,600 8,854  6,949     8,854    7,248 64,550    64,600 9,514  7,309     9,514    7,908
58,600     58,650 8,205  6,595     8,205    6,721 61,600     61,650 8,865  6,955     8,865    7,259 64,600    64,650 9,525  7,315     9,525    7,919
58,650     58,700 8,216  6,601     8,216    6,727 61,650     61,700 8,876  6,961     8,876    7,270 64,650    64,700 9,536  7,321     9,536    7,930
58,700     58,750 8,227  6,607     8,227    6,733 61,700     61,750 8,887  6,967     8,887    7,281 64,700    64,750 9,547  7,327     9,547    7,941
58,750     58,800 8,238  6,613     8,238    6,739 61,750     61,800 8,898  6,973     8,898    7,292 64,750    64,800 9,558  7,333     9,558    7,952
58,800     58,850 8,249  6,619     8,249    6,745 61,800     61,850 8,909  6,979     8,909    7,303 64,800    64,850 9,569  7,339     9,569    7,963
58,850     58,900 8,260  6,625     8,260    6,751 61,850     61,900 8,920  6,985     8,920    7,314 64,850    64,900 9,580  7,345     9,580    7,974
58,900     58,950 8,271  6,631     8,271    6,757 61,900     61,950 8,931  6,991     8,931    7,325 64,900    64,950 9,591  7,351     9,591    7,985
58,950     59,000 8,282  6,637     8,282    6,763 61,950     62,000 8,942  6,997     8,942    7,336 64,950    65,000 9,602  7,357     9,602    7,996
   59,000                                              62,000                                            65,000
59,000     59,050 8,293  6,643     8,293    6,769 62,000     62,050 8,953  7,003     8,953    7,347 65,000    65,050 9,613  7,363     9,613    8,007
59,050     59,100 8,304  6,649     8,304    6,775 62,050     62,100 8,964  7,009     8,964    7,358 65,050    65,100 9,624  7,369     9,624    8,018
59,100     59,150 8,315  6,655     8,315    6,781 62,100     62,150 8,975  7,015     8,975    7,369 65,100    65,150 9,635  7,375     9,635    8,029
59,150     59,200 8,326  6,661     8,326    6,787 62,150     62,200 8,986  7,021     8,986    7,380 65,150    65,200 9,646  7,381     9,646    8,040
59,200     59,250 8,337  6,667     8,337    6,793 62,200     62,250 8,997  7,027     8,997    7,391 65,200    65,250 9,657  7,387     9,657    8,051
59,250     59,300 8,348  6,673     8,348    6,799 62,250     62,300 9,008  7,033     9,008    7,402 65,250    65,300 9,668  7,393     9,668    8,062
59,300     59,350 8,359  6,679     8,359    6,805 62,300     62,350 9,019  7,039     9,019    7,413 65,300    65,350 9,679  7,399     9,679    8,073
59,350     59,400 8,370  6,685     8,370    6,811 62,350     62,400 9,030  7,045     9,030    7,424 65,350    65,400 9,690  7,405     9,690    8,084
59,400     59,450 8,381  6,691     8,381    6,817 62,400     62,450 9,041  7,051     9,041    7,435 65,400    65,450 9,701  7,411     9,701    8,095
59,450     59,500 8,392  6,697     8,392    6,823 62,450     62,500 9,052  7,057     9,052    7,446 65,450    65,500 9,712  7,417     9,712    8,106
59,500     59,550 8,403  6,703     8,403    6,829 62,500     62,550 9,063  7,063     9,063    7,457 65,500    65,550 9,723  7,423     9,723    8,117
59,550     59,600 8,414  6,709     8,414    6,835 62,550     62,600 9,074  7,069     9,074    7,468 65,550    65,600 9,734  7,429     9,734    8,128
59,600     59,650 8,425  6,715     8,425    6,841 62,600     62,650 9,085  7,075     9,085    7,479 65,600    65,650 9,745  7,435     9,745    8,139
59,650     59,700 8,436  6,721     8,436    6,847 62,650     62,700 9,096  7,081     9,096    7,490 65,650    65,700 9,756  7,441     9,756    8,150
59,700     59,750 8,447  6,727     8,447    6,853 62,700     62,750 9,107  7,087     9,107    7,501 65,700    65,750 9,767  7,447     9,767    8,161
59,750     59,800 8,458  6,733     8,458    6,859 62,750     62,800 9,118  7,093     9,118    7,512 65,750    65,800 9,778  7,453     9,778    8,172
59,800     59,850 8,469  6,739     8,469    6,865 62,800     62,850 9,129  7,099     9,129    7,523 65,800    65,850 9,789  7,459     9,789    8,183
59,850     59,900 8,480  6,745     8,480    6,874 62,850     62,900 9,140  7,105     9,140    7,534 65,850    65,900 9,800  7,465     9,800    8,194
59,900     59,950 8,491  6,751     8,491    6,885 62,900     62,950 9,151  7,111     9,151    7,545 65,900    65,950 9,811  7,471     9,811    8,205
59,950     60,000 8,502  6,757     8,502    6,896 62,950     63,000 9,162  7,117     9,162    7,556 65,950    66,000 9,822  7,477     9,822    8,216

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)                                                                                                                          119

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Page 122 of 142                  Fileid: … ations/p17/2023/a/xml/cycle02/source                                    9:53 - 19-Jan-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                     2023 Tax Table — Continued

If line 15                                        If line 15                                        If line 15
(taxable                 And you are—             (taxable                 And you are—             (taxable                And you are—
income) is—                                       income) is—                                       income) is—
At       But      Single Married  Married  Head of  At     But      Single Married  Married  Head of  At      But    Single Married  Married  Head of 
least    less            filing    filing a       least    less            filing    filing a       least     less          filing    filing 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—
   66,000                                              69,000                                            72,000
66,000     66,050 9,833  7,483     9,833    8,227 69,000     69,050 10,493 7,843     10,493   8,887 72,000    72,050 11,153 8,203     11,153   9,547
66,050     66,100 9,844  7,489     9,844    8,238 69,050     69,100 10,504 7,849     10,504   8,898 72,050    72,100 11,164 8,209     11,164   9,558
66,100     66,150 9,855  7,495     9,855    8,249 69,100     69,150 10,515 7,855     10,515   8,909 72,100    72,150 11,175 8,215     11,175   9,569
66,150     66,200 9,866  7,501     9,866    8,260 69,150     69,200 10,526 7,861     10,526   8,920 72,150    72,200 11,186 8,221     11,186   9,580
66,200     66,250 9,877  7,507     9,877    8,271 69,200     69,250 10,537 7,867     10,537   8,931 72,200    72,250 11,197 8,227     11,197   9,591
66,250     66,300 9,888  7,513     9,888    8,282 69,250     69,300 10,548 7,873     10,548   8,942 72,250    72,300 11,208 8,233     11,208   9,602
66,300     66,350 9,899  7,519     9,899    8,293 69,300     69,350 10,559 7,879     10,559   8,953 72,300    72,350 11,219 8,239     11,219   9,613
66,350     66,400 9,910  7,525     9,910    8,304 69,350     69,400 10,570 7,885     10,570   8,964 72,350    72,400 11,230 8,245     11,230   9,624
66,400     66,450 9,921  7,531     9,921    8,315 69,400     69,450 10,581 7,891     10,581   8,975 72,400    72,450 11,241 8,251     11,241   9,635
66,450     66,500 9,932  7,537     9,932    8,326 69,450     69,500 10,592 7,897     10,592   8,986 72,450    72,500 11,252 8,257     11,252   9,646
66,500     66,550 9,943  7,543     9,943    8,337 69,500     69,550 10,603 7,903     10,603   8,997 72,500    72,550 11,263 8,263     11,263   9,657
66,550     66,600 9,954  7,549     9,954    8,348 69,550     69,600 10,614 7,909     10,614   9,008 72,550    72,600 11,274 8,269     11,274   9,668
66,600     66,650 9,965  7,555     9,965    8,359 69,600     69,650 10,625 7,915     10,625   9,019 72,600    72,650 11,285 8,275     11,285   9,679
66,650     66,700 9,976  7,561     9,976    8,370 69,650     69,700 10,636 7,921     10,636   9,030 72,650    72,700 11,296 8,281     11,296   9,690
66,700     66,750 9,987  7,567     9,987    8,381 69,700     69,750 10,647 7,927     10,647   9,041 72,700    72,750 11,307 8,287     11,307   9,701
66,750     66,800 9,998  7,573     9,998    8,392 69,750     69,800 10,658 7,933     10,658   9,052 72,750    72,800 11,318 8,293     11,318   9,712
66,800     66,850 10,009 7,579     10,009   8,403 69,800     69,850 10,669 7,939     10,669   9,063 72,800    72,850 11,329 8,299     11,329   9,723
66,850     66,900 10,020 7,585     10,020   8,414 69,850     69,900 10,680 7,945     10,680   9,074 72,850    72,900 11,340 8,305     11,340   9,734
66,900     66,950 10,031 7,591     10,031   8,425 69,900     69,950 10,691 7,951     10,691   9,085 72,900    72,950 11,351 8,311     11,351   9,745
66,950     67,000 10,042 7,597     10,042   8,436 69,950     70,000 10,702 7,957     10,702   9,096 72,950    73,000 11,362 8,317     11,362   9,756
   67,000                                              70,000                                            73,000
67,000     67,050 10,053 7,603     10,053   8,447 70,000     70,050 10,713 7,963     10,713   9,107 73,000    73,050 11,373 8,323     11,373   9,767
67,050     67,100 10,064 7,609     10,064   8,458 70,050     70,100 10,724 7,969     10,724   9,118 73,050    73,100 11,384 8,329     11,384   9,778
67,100     67,150 10,075 7,615     10,075   8,469 70,100     70,150 10,735 7,975     10,735   9,129 73,100    73,150 11,395 8,335     11,395   9,789
67,150     67,200 10,086 7,621     10,086   8,480 70,150     70,200 10,746 7,981     10,746   9,140 73,150    73,200 11,406 8,341     11,406   9,800
67,200     67,250 10,097 7,627     10,097   8,491 70,200     70,250 10,757 7,987     10,757   9,151 73,200    73,250 11,417 8,347     11,417   9,811
67,250     67,300 10,108 7,633     10,108   8,502 70,250     70,300 10,768 7,993     10,768   9,162 73,250    73,300 11,428 8,353     11,428   9,822
67,300     67,350 10,119 7,639     10,119   8,513 70,300     70,350 10,779 7,999     10,779   9,173 73,300    73,350 11,439 8,359     11,439   9,833
67,350     67,400 10,130 7,645     10,130   8,524 70,350     70,400 10,790 8,005     10,790   9,184 73,350    73,400 11,450 8,365     11,450   9,844
67,400     67,450 10,141 7,651     10,141   8,535 70,400     70,450 10,801 8,011     10,801   9,195 73,400    73,450 11,461 8,371     11,461   9,855
67,450     67,500 10,152 7,657     10,152   8,546 70,450     70,500 10,812 8,017     10,812   9,206 73,450    73,500 11,472 8,377     11,472   9,866
67,500     67,550 10,163 7,663     10,163   8,557 70,500     70,550 10,823 8,023     10,823   9,217 73,500    73,550 11,483 8,383     11,483   9,877
67,550     67,600 10,174 7,669     10,174   8,568 70,550     70,600 10,834 8,029     10,834   9,228 73,550    73,600 11,494 8,389     11,494   9,888
67,600     67,650 10,185 7,675     10,185   8,579 70,600     70,650 10,845 8,035     10,845   9,239 73,600    73,650 11,505 8,395     11,505   9,899
67,650     67,700 10,196 7,681     10,196   8,590 70,650     70,700 10,856 8,041     10,856   9,250 73,650    73,700 11,516 8,401     11,516   9,910
67,700     67,750 10,207 7,687     10,207   8,601 70,700     70,750 10,867 8,047     10,867   9,261 73,700    73,750 11,527 8,407     11,527   9,921
67,750     67,800 10,218 7,693     10,218   8,612 70,750     70,800 10,878 8,053     10,878   9,272 73,750    73,800 11,538 8,413     11,538   9,932
67,800     67,850 10,229 7,699     10,229   8,623 70,800     70,850 10,889 8,059     10,889   9,283 73,800    73,850 11,549 8,419     11,549   9,943
67,850     67,900 10,240 7,705     10,240   8,634 70,850     70,900 10,900 8,065     10,900   9,294 73,850    73,900 11,560 8,425     11,560   9,954
67,900     67,950 10,251 7,711     10,251   8,645 70,900     70,950 10,911 8,071     10,911   9,305 73,900    73,950 11,571 8,431     11,571   9,965
67,950     68,000 10,262 7,717     10,262   8,656 70,950     71,000 10,922 8,077     10,922   9,316 73,950    74,000 11,582 8,437     11,582   9,976
   68,000                                              71,000                                            74,000
68,000     68,050 10,273 7,723     10,273   8,667 71,000     71,050 10,933 8,083     10,933   9,327 74,000    74,050 11,593 8,443     11,593   9,987
68,050     68,100 10,284 7,729     10,284   8,678 71,050     71,100 10,944 8,089     10,944   9,338 74,050    74,100 11,604 8,449     11,604   9,998
68,100     68,150 10,295 7,735     10,295   8,689 71,100     71,150 10,955 8,095     10,955   9,349 74,100    74,150 11,615 8,455     11,615 10,009
68,150     68,200 10,306 7,741     10,306   8,700 71,150     71,200 10,966 8,101     10,966   9,360 74,150    74,200 11,626 8,461     11,626 10,020
68,200     68,250 10,317 7,747     10,317   8,711 71,200     71,250 10,977 8,107     10,977   9,371 74,200    74,250 11,637 8,467     11,637 10,031
68,250     68,300 10,328 7,753     10,328   8,722 71,250     71,300 10,988 8,113     10,988   9,382 74,250    74,300 11,648 8,473     11,648 10,042
68,300     68,350 10,339 7,759     10,339   8,733 71,300     71,350 10,999 8,119     10,999   9,393 74,300    74,350 11,659 8,479     11,659 10,053
68,350     68,400 10,350 7,765     10,350   8,744 71,350     71,400 11,010 8,125     11,010   9,404 74,350    74,400 11,670 8,485     11,670 10,064
68,400     68,450 10,361 7,771     10,361   8,755 71,400     71,450 11,021 8,131     11,021   9,415 74,400    74,450 11,681 8,491     11,681 10,075
68,450     68,500 10,372 7,777     10,372   8,766 71,450     71,500 11,032 8,137     11,032   9,426 74,450    74,500 11,692 8,497     11,692 10,086
68,500     68,550 10,383 7,783     10,383   8,777 71,500     71,550 11,043 8,143     11,043   9,437 74,500    74,550 11,703 8,503     11,703 10,097
68,550     68,600 10,394 7,789     10,394   8,788 71,550     71,600 11,054 8,149     11,054   9,448 74,550    74,600 11,714 8,509     11,714 10,108
68,600     68,650 10,405 7,795     10,405   8,799 71,600     71,650 11,065 8,155     11,065   9,459 74,600    74,650 11,725 8,515     11,725 10,119
68,650     68,700 10,416 7,801     10,416   8,810 71,650     71,700 11,076 8,161     11,076   9,470 74,650    74,700 11,736 8,521     11,736 10,130
68,700     68,750 10,427 7,807     10,427   8,821 71,700     71,750 11,087 8,167     11,087   9,481 74,700    74,750 11,747 8,527     11,747 10,141
68,750     68,800 10,438 7,813     10,438   8,832 71,750     71,800 11,098 8,173     11,098   9,492 74,750    74,800 11,758 8,533     11,758 10,152
68,800     68,850 10,449 7,819     10,449   8,843 71,800     71,850 11,109 8,179     11,109   9,503 74,800    74,850 11,769 8,539     11,769 10,163
68,850     68,900 10,460 7,825     10,460   8,854 71,850     71,900 11,120 8,185     11,120   9,514 74,850    74,900 11,780 8,545     11,780 10,174
68,900     68,950 10,471 7,831     10,471   8,865 71,900     71,950 11,131 8,191     11,131   9,525 74,900    74,950 11,791 8,551     11,791 10,185
68,950     69,000 10,482 7,837     10,482   8,876 71,950     72,000 11,142 8,197     11,142   9,536 74,950    75,000 11,802 8,557     11,802 10,196

                                                                                                                                      (Continued)
* This column must also be used by a qualifying surviving spouse.

120                                                                                                                         Publication 17 (2023)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                   2023 Tax Table — Continued

If line 15                                       If line 15                                       If line 15
(taxable                 And you are—            (taxable                 And you are—            (taxable                And you are—
income) is—                                      income) is—                                      income) is—
At       But      Single Married  Married  Head of  At    But      Single Married  Married  Head of  At     But    Single Married  Married  Head of 
least    less            filing    filing a      least    less            filing    filing a      least     less          filing    filing 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—
   75,000                                              78,000                                           81,000
75,000     75,050 11,813 8,563     11,813 10,207 78,000     78,050 12,473 8,923     12,473 10,867 81,000    81,050 13,133 9,283     13,133 11,527
75,050     75,100 11,824 8,569     11,824 10,218 78,050     78,100 12,484 8,929     12,484 10,878 81,050    81,100 13,144 9,289     13,144 11,538
75,100     75,150 11,835 8,575     11,835 10,229 78,100     78,150 12,495 8,935     12,495 10,889 81,100    81,150 13,155 9,295     13,155 11,549
75,150     75,200 11,846 8,581     11,846 10,240 78,150     78,200 12,506 8,941     12,506 10,900 81,150    81,200 13,166 9,301     13,166 11,560
75,200     75,250 11,857 8,587     11,857 10,251 78,200     78,250 12,517 8,947     12,517 10,911 81,200    81,250 13,177 9,307     13,177 11,571
75,250     75,300 11,868 8,593     11,868 10,262 78,250     78,300 12,528 8,953     12,528 10,922 81,250    81,300 13,188 9,313     13,188 11,582
75,300     75,350 11,879 8,599     11,879 10,273 78,300     78,350 12,539 8,959     12,539 10,933 81,300    81,350 13,199 9,319     13,199 11,593
75,350     75,400 11,890 8,605     11,890 10,284 78,350     78,400 12,550 8,965     12,550 10,944 81,350    81,400 13,210 9,325     13,210 11,604
75,400     75,450 11,901 8,611     11,901 10,295 78,400     78,450 12,561 8,971     12,561 10,955 81,400    81,450 13,221 9,331     13,221 11,615
75,450     75,500 11,912 8,617     11,912 10,306 78,450     78,500 12,572 8,977     12,572 10,966 81,450    81,500 13,232 9,337     13,232 11,626
75,500     75,550 11,923 8,623     11,923 10,317 78,500     78,550 12,583 8,983     12,583 10,977 81,500    81,550 13,243 9,343     13,243 11,637
75,550     75,600 11,934 8,629     11,934 10,328 78,550     78,600 12,594 8,989     12,594 10,988 81,550    81,600 13,254 9,349     13,254 11,648
75,600     75,650 11,945 8,635     11,945 10,339 78,600     78,650 12,605 8,995     12,605 10,999 81,600    81,650 13,265 9,355     13,265 11,659
75,650     75,700 11,956 8,641     11,956 10,350 78,650     78,700 12,616 9,001     12,616 11,010 81,650    81,700 13,276 9,361     13,276 11,670
75,700     75,750 11,967 8,647     11,967 10,361 78,700     78,750 12,627 9,007     12,627 11,021 81,700    81,750 13,287 9,367     13,287 11,681
75,750     75,800 11,978 8,653     11,978 10,372 78,750     78,800 12,638 9,013     12,638 11,032 81,750    81,800 13,298 9,373     13,298 11,692
75,800     75,850 11,989 8,659     11,989 10,383 78,800     78,850 12,649 9,019     12,649 11,043 81,800    81,850 13,309 9,379     13,309 11,703
75,850     75,900 12,000 8,665     12,000 10,394 78,850     78,900 12,660 9,025     12,660 11,054 81,850    81,900 13,320 9,385     13,320 11,714
75,900     75,950 12,011 8,671     12,011 10,405 78,900     78,950 12,671 9,031     12,671 11,065 81,900    81,950 13,331 9,391     13,331 11,725
75,950     76,000 12,022 8,677     12,022 10,416 78,950     79,000 12,682 9,037     12,682 11,076 81,950    82,000 13,342 9,397     13,342 11,736
   76,000                                              79,000                                           82,000
76,000     76,050 12,033 8,683     12,033 10,427 79,000     79,050 12,693 9,043     12,693 11,087 82,000    82,050 13,353 9,403     13,353 11,747
76,050     76,100 12,044 8,689     12,044 10,438 79,050     79,100 12,704 9,049     12,704 11,098 82,050    82,100 13,364 9,409     13,364 11,758
76,100     76,150 12,055 8,695     12,055 10,449 79,100     79,150 12,715 9,055     12,715 11,109 82,100    82,150 13,375 9,415     13,375 11,769
76,150     76,200 12,066 8,701     12,066 10,460 79,150     79,200 12,726 9,061     12,726 11,120 82,150    82,200 13,386 9,421     13,386 11,780
76,200     76,250 12,077 8,707     12,077 10,471 79,200     79,250 12,737 9,067     12,737 11,131 82,200    82,250 13,397 9,427     13,397 11,791
76,250     76,300 12,088 8,713     12,088 10,482 79,250     79,300 12,748 9,073     12,748 11,142 82,250    82,300 13,408 9,433     13,408 11,802
76,300     76,350 12,099 8,719     12,099 10,493 79,300     79,350 12,759 9,079     12,759 11,153 82,300    82,350 13,419 9,439     13,419 11,813
76,350     76,400 12,110 8,725     12,110 10,504 79,350     79,400 12,770 9,085     12,770 11,164 82,350    82,400 13,430 9,445     13,430 11,824
76,400     76,450 12,121 8,731     12,121 10,515 79,400     79,450 12,781 9,091     12,781 11,175 82,400    82,450 13,441 9,451     13,441 11,835
76,450     76,500 12,132 8,737     12,132 10,526 79,450     79,500 12,792 9,097     12,792 11,186 82,450    82,500 13,452 9,457     13,452 11,846
76,500     76,550 12,143 8,743     12,143 10,537 79,500     79,550 12,803 9,103     12,803 11,197 82,500    82,550 13,463 9,463     13,463 11,857
76,550     76,600 12,154 8,749     12,154 10,548 79,550     79,600 12,814 9,109     12,814 11,208 82,550    82,600 13,474 9,469     13,474 11,868
76,600     76,650 12,165 8,755     12,165 10,559 79,600     79,650 12,825 9,115     12,825 11,219 82,600    82,650 13,485 9,475     13,485 11,879
76,650     76,700 12,176 8,761     12,176 10,570 79,650     79,700 12,836 9,121     12,836 11,230 82,650    82,700 13,496 9,481     13,496 11,890
76,700     76,750 12,187 8,767     12,187 10,581 79,700     79,750 12,847 9,127     12,847 11,241 82,700    82,750 13,507 9,487     13,507 11,901
76,750     76,800 12,198 8,773     12,198 10,592 79,750     79,800 12,858 9,133     12,858 11,252 82,750    82,800 13,518 9,493     13,518 11,912
76,800     76,850 12,209 8,779     12,209 10,603 79,800     79,850 12,869 9,139     12,869 11,263 82,800    82,850 13,529 9,499     13,529 11,923
76,850     76,900 12,220 8,785     12,220 10,614 79,850     79,900 12,880 9,145     12,880 11,274 82,850    82,900 13,540 9,505     13,540 11,934
76,900     76,950 12,231 8,791     12,231 10,625 79,900     79,950 12,891 9,151     12,891 11,285 82,900    82,950 13,551 9,511     13,551 11,945
76,950     77,000 12,242 8,797     12,242 10,636 79,950     80,000 12,902 9,157     12,902 11,296 82,950    83,000 13,562 9,517     13,562 11,956
   77,000                                              80,000                                           83,000
77,000     77,050 12,253 8,803     12,253 10,647 80,000     80,050 12,913 9,163     12,913 11,307 83,000    83,050 13,573 9,523     13,573 11,967
77,050     77,100 12,264 8,809     12,264 10,658 80,050     80,100 12,924 9,169     12,924 11,318 83,050    83,100 13,584 9,529     13,584 11,978
77,100     77,150 12,275 8,815     12,275 10,669 80,100     80,150 12,935 9,175     12,935 11,329 83,100    83,150 13,595 9,535     13,595 11,989
77,150     77,200 12,286 8,821     12,286 10,680 80,150     80,200 12,946 9,181     12,946 11,340 83,150    83,200 13,606 9,541     13,606 12,000
77,200     77,250 12,297 8,827     12,297 10,691 80,200     80,250 12,957 9,187     12,957 11,351 83,200    83,250 13,617 9,547     13,617 12,011
77,250     77,300 12,308 8,833     12,308 10,702 80,250     80,300 12,968 9,193     12,968 11,362 83,250    83,300 13,628 9,553     13,628 12,022
77,300     77,350 12,319 8,839     12,319 10,713 80,300     80,350 12,979 9,199     12,979 11,373 83,300    83,350 13,639 9,559     13,639 12,033
77,350     77,400 12,330 8,845     12,330 10,724 80,350     80,400 12,990 9,205     12,990 11,384 83,350    83,400 13,650 9,565     13,650 12,044
77,400     77,450 12,341 8,851     12,341 10,735 80,400     80,450 13,001 9,211     13,001 11,395 83,400    83,450 13,661 9,571     13,661 12,055
77,450     77,500 12,352 8,857     12,352 10,746 80,450     80,500 13,012 9,217     13,012 11,406 83,450    83,500 13,672 9,577     13,672 12,066
77,500     77,550 12,363 8,863     12,363 10,757 80,500     80,550 13,023 9,223     13,023 11,417 83,500    83,550 13,683 9,583     13,683 12,077
77,550     77,600 12,374 8,869     12,374 10,768 80,550     80,600 13,034 9,229     13,034 11,428 83,550    83,600 13,694 9,589     13,694 12,088
77,600     77,650 12,385 8,875     12,385 10,779 80,600     80,650 13,045 9,235     13,045 11,439 83,600    83,650 13,705 9,595     13,705 12,099
77,650     77,700 12,396 8,881     12,396 10,790 80,650     80,700 13,056 9,241     13,056 11,450 83,650    83,700 13,716 9,601     13,716 12,110
77,700     77,750 12,407 8,887     12,407 10,801 80,700     80,750 13,067 9,247     13,067 11,461 83,700    83,750 13,727 9,607     13,727 12,121
77,750     77,800 12,418 8,893     12,418 10,812 80,750     80,800 13,078 9,253     13,078 11,472 83,750    83,800 13,738 9,613     13,738 12,132
77,800     77,850 12,429 8,899     12,429 10,823 80,800     80,850 13,089 9,259     13,089 11,483 83,800    83,850 13,749 9,619     13,749 12,143
77,850     77,900 12,440 8,905     12,440 10,834 80,850     80,900 13,100 9,265     13,100 11,494 83,850    83,900 13,760 9,625     13,760 12,154
77,900     77,950 12,451 8,911     12,451 10,845 80,900     80,950 13,111 9,271     13,111 11,505 83,900    83,950 13,771 9,631     13,771 12,165
77,950     78,000 12,462 8,917     12,462 10,856 80,950     81,000 13,122 9,277     13,122 11,516 83,950    84,000 13,782 9,637     13,782 12,176

                                                                                                                                    (Continued)
* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)                                                                                                                        121

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                   2023 Tax Table — Continued

If line 15                                       If line 15                                       If line 15
(taxable                 And you are—            (taxable                 And you are—            (taxable                And you are—
income) is—                                      income) is—                                      income) is—
At       But      Single Married  Married  Head of  At    But      Single Married  Married  Head of  At     But    Single Married  Married  Head of 
least    less            filing    filing a      least    less            filing    filing a      least     less          filing    filing 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—
   84,000                                              87,000                                           90,000
84,000     84,050 13,793 9,643     13,793 12,187 87,000     87,050 14,453 10,003    14,453 12,847 90,000    90,050 15,113 10,421    15,113 13,507
84,050     84,100 13,804 9,649     13,804 12,198 87,050     87,100 14,464 10,009    14,464 12,858 90,050    90,100 15,124 10,432    15,124 13,518
84,100     84,150 13,815 9,655     13,815 12,209 87,100     87,150 14,475 10,015    14,475 12,869 90,100    90,150 15,135 10,443    15,135 13,529
84,150     84,200 13,826 9,661     13,826 12,220 87,150     87,200 14,486 10,021    14,486 12,880 90,150    90,200 15,146 10,454    15,146 13,540
84,200     84,250 13,837 9,667     13,837 12,231 87,200     87,250 14,497 10,027    14,497 12,891 90,200    90,250 15,157 10,465    15,157 13,551
84,250     84,300 13,848 9,673     13,848 12,242 87,250     87,300 14,508 10,033    14,508 12,902 90,250    90,300 15,168 10,476    15,168 13,562
84,300     84,350 13,859 9,679     13,859 12,253 87,300     87,350 14,519 10,039    14,519 12,913 90,300    90,350 15,179 10,487    15,179 13,573
84,350     84,400 13,870 9,685     13,870 12,264 87,350     87,400 14,530 10,045    14,530 12,924 90,350    90,400 15,190 10,498    15,190 13,584
84,400     84,450 13,881 9,691     13,881 12,275 87,400     87,450 14,541 10,051    14,541 12,935 90,400    90,450 15,201 10,509    15,201 13,595
84,450     84,500 13,892 9,697     13,892 12,286 87,450     87,500 14,552 10,057    14,552 12,946 90,450    90,500 15,212 10,520    15,212 13,606
84,500     84,550 13,903 9,703     13,903 12,297 87,500     87,550 14,563 10,063    14,563 12,957 90,500    90,550 15,223 10,531    15,223 13,617
84,550     84,600 13,914 9,709     13,914 12,308 87,550     87,600 14,574 10,069    14,574 12,968 90,550    90,600 15,234 10,542    15,234 13,628
84,600     84,650 13,925 9,715     13,925 12,319 87,600     87,650 14,585 10,075    14,585 12,979 90,600    90,650 15,245 10,553    15,245 13,639
84,650     84,700 13,936 9,721     13,936 12,330 87,650     87,700 14,596 10,081    14,596 12,990 90,650    90,700 15,256 10,564    15,256 13,650
84,700     84,750 13,947 9,727     13,947 12,341 87,700     87,750 14,607 10,087    14,607 13,001 90,700    90,750 15,267 10,575    15,267 13,661
84,750     84,800 13,958 9,733     13,958 12,352 87,750     87,800 14,618 10,093    14,618 13,012 90,750    90,800 15,278 10,586    15,278 13,672
84,800     84,850 13,969 9,739     13,969 12,363 87,800     87,850 14,629 10,099    14,629 13,023 90,800    90,850 15,289 10,597    15,289 13,683
84,850     84,900 13,980 9,745     13,980 12,374 87,850     87,900 14,640 10,105    14,640 13,034 90,850    90,900 15,300 10,608    15,300 13,694
84,900     84,950 13,991 9,751     13,991 12,385 87,900     87,950 14,651 10,111    14,651 13,045 90,900    90,950 15,311 10,619    15,311 13,705
84,950     85,000 14,002 9,757     14,002 12,396 87,950     88,000 14,662 10,117    14,662 13,056 90,950    91,000 15,322 10,630    15,322 13,716
   85,000                                              88,000                                           91,000
85,000     85,050 14,013 9,763     14,013 12,407 88,000     88,050 14,673 10,123    14,673 13,067 91,000    91,050 15,333 10,641    15,333 13,727
85,050     85,100 14,024 9,769     14,024 12,418 88,050     88,100 14,684 10,129    14,684 13,078 91,050    91,100 15,344 10,652    15,344 13,738
85,100     85,150 14,035 9,775     14,035 12,429 88,100     88,150 14,695 10,135    14,695 13,089 91,100    91,150 15,355 10,663    15,355 13,749
85,150     85,200 14,046 9,781     14,046 12,440 88,150     88,200 14,706 10,141    14,706 13,100 91,150    91,200 15,366 10,674    15,366 13,760
85,200     85,250 14,057 9,787     14,057 12,451 88,200     88,250 14,717 10,147    14,717 13,111 91,200    91,250 15,377 10,685    15,377 13,771
85,250     85,300 14,068 9,793     14,068 12,462 88,250     88,300 14,728 10,153    14,728 13,122 91,250    91,300 15,388 10,696    15,388 13,782
85,300     85,350 14,079 9,799     14,079 12,473 88,300     88,350 14,739 10,159    14,739 13,133 91,300    91,350 15,399 10,707    15,399 13,793
85,350     85,400 14,090 9,805     14,090 12,484 88,350     88,400 14,750 10,165    14,750 13,144 91,350    91,400 15,410 10,718    15,410 13,804
85,400     85,450 14,101 9,811     14,101 12,495 88,400     88,450 14,761 10,171    14,761 13,155 91,400    91,450 15,421 10,729    15,421 13,815
85,450     85,500 14,112 9,817     14,112 12,506 88,450     88,500 14,772 10,177    14,772 13,166 91,450    91,500 15,432 10,740    15,432 13,826
85,500     85,550 14,123 9,823     14,123 12,517 88,500     88,550 14,783 10,183    14,783 13,177 91,500    91,550 15,443 10,751    15,443 13,837
85,550     85,600 14,134 9,829     14,134 12,528 88,550     88,600 14,794 10,189    14,794 13,188 91,550    91,600 15,454 10,762    15,454 13,848
85,600     85,650 14,145 9,835     14,145 12,539 88,600     88,650 14,805 10,195    14,805 13,199 91,600    91,650 15,465 10,773    15,465 13,859
85,650     85,700 14,156 9,841     14,156 12,550 88,650     88,700 14,816 10,201    14,816 13,210 91,650    91,700 15,476 10,784    15,476 13,870
85,700     85,750 14,167 9,847     14,167 12,561 88,700     88,750 14,827 10,207    14,827 13,221 91,700    91,750 15,487 10,795    15,487 13,881
85,750     85,800 14,178 9,853     14,178 12,572 88,750     88,800 14,838 10,213    14,838 13,232 91,750    91,800 15,498 10,806    15,498 13,892
85,800     85,850 14,189 9,859     14,189 12,583 88,800     88,850 14,849 10,219    14,849 13,243 91,800    91,850 15,509 10,817    15,509 13,903
85,850     85,900 14,200 9,865     14,200 12,594 88,850     88,900 14,860 10,225    14,860 13,254 91,850    91,900 15,520 10,828    15,520 13,914
85,900     85,950 14,211 9,871     14,211 12,605 88,900     88,950 14,871 10,231    14,871 13,265 91,900    91,950 15,531 10,839    15,531 13,925
85,950     86,000 14,222 9,877     14,222 12,616 88,950     89,000 14,882 10,237    14,882 13,276 91,950    92,000 15,542 10,850    15,542 13,936
   86,000                                              89,000                                           92,000
86,000     86,050 14,233 9,883     14,233 12,627 89,000     89,050 14,893 10,243    14,893 13,287 92,000    92,050 15,553 10,861    15,553 13,947
86,050     86,100 14,244 9,889     14,244 12,638 89,050     89,100 14,904 10,249    14,904 13,298 92,050    92,100 15,564 10,872    15,564 13,958
86,100     86,150 14,255 9,895     14,255 12,649 89,100     89,150 14,915 10,255    14,915 13,309 92,100    92,150 15,575 10,883    15,575 13,969
86,150     86,200 14,266 9,901     14,266 12,660 89,150     89,200 14,926 10,261    14,926 13,320 92,150    92,200 15,586 10,894    15,586 13,980
86,200     86,250 14,277 9,907     14,277 12,671 89,200     89,250 14,937 10,267    14,937 13,331 92,200    92,250 15,597 10,905    15,597 13,991
86,250     86,300 14,288 9,913     14,288 12,682 89,250     89,300 14,948 10,273    14,948 13,342 92,250    92,300 15,608 10,916    15,608 14,002
86,300     86,350 14,299 9,919     14,299 12,693 89,300     89,350 14,959 10,279    14,959 13,353 92,300    92,350 15,619 10,927    15,619 14,013
86,350     86,400 14,310 9,925     14,310 12,704 89,350     89,400 14,970 10,285    14,970 13,364 92,350    92,400 15,630 10,938    15,630 14,024
86,400     86,450 14,321 9,931     14,321 12,715 89,400     89,450 14,981 10,291    14,981 13,375 92,400    92,450 15,641 10,949    15,641 14,035
86,450     86,500 14,332 9,937     14,332 12,726 89,450     89,500 14,992 10,300    14,992 13,386 92,450    92,500 15,652 10,960    15,652 14,046
86,500     86,550 14,343 9,943     14,343 12,737 89,500     89,550 15,003 10,311    15,003 13,397 92,500    92,550 15,663 10,971    15,663 14,057
86,550     86,600 14,354 9,949     14,354 12,748 89,550     89,600 15,014 10,322    15,014 13,408 92,550    92,600 15,674 10,982    15,674 14,068
86,600     86,650 14,365 9,955     14,365 12,759 89,600     89,650 15,025 10,333    15,025 13,419 92,600    92,650 15,685 10,993    15,685 14,079
86,650     86,700 14,376 9,961     14,376 12,770 89,650     89,700 15,036 10,344    15,036 13,430 92,650    92,700 15,696 11,004    15,696 14,090
86,700     86,750 14,387 9,967     14,387 12,781 89,700     89,750 15,047 10,355    15,047 13,441 92,700    92,750 15,707 11,015    15,707 14,101
86,750     86,800 14,398 9,973     14,398 12,792 89,750     89,800 15,058 10,366    15,058 13,452 92,750    92,800 15,718 11,026    15,718 14,112
86,800     86,850 14,409 9,979     14,409 12,803 89,800     89,850 15,069 10,377    15,069 13,463 92,800    92,850 15,729 11,037    15,729 14,123
86,850     86,900 14,420 9,985     14,420 12,814 89,850     89,900 15,080 10,388    15,080 13,474 92,850    92,900 15,740 11,048    15,740 14,134
86,900     86,950 14,431 9,991     14,431 12,825 89,900     89,950 15,091 10,399    15,091 13,485 92,900    92,950 15,751 11,059    15,751 14,145
86,950     87,000 14,442 9,997     14,442 12,836 89,950     90,000 15,102 10,410    15,102 13,496 92,950    93,000 15,762 11,070    15,762 14,156

                                                                                                                                    (Continued)
* This column must also be used by a qualifying surviving spouse.

122                                                                                                                       Publication 17 (2023)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

                                                                                                                   2023 Tax Table — Continued

If line 15                                       If line 15                                       If line 15
(taxable                 And you are—            (taxable                 And you are—            (taxable                   And you are—
income) is—                                      income) is—                                      income) is—
At       But      Single Married  Married  Head of  At    But      Single Married  Married  Head of  At     But    Single Married  Married  Head of 
least    less            filing    filing a      least    less            filing    filing a      least     less          filing    filing 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—
   93,000                                              96,000                                           99,000
93,000     93,050 15,773 11,081    15,773 14,167 96,000     96,050 16,446 11,741    16,446 14,840 99,000    99,050 17,166    12,401 17,166 15,560
93,050     93,100 15,784 11,092    15,784 14,178 96,050     96,100 16,458 11,752    16,458 14,852 99,050    99,100 17,178    12,412 17,178 15,572
93,100     93,150 15,795 11,103    15,795 14,189 96,100     96,150 16,470 11,763    16,470 14,864 99,100    99,150 17,190    12,423 17,190 15,584
93,150     93,200 15,806 11,114    15,806 14,200 96,150     96,200 16,482 11,774    16,482 14,876 99,150    99,200 17,202    12,434 17,202 15,596
93,200     93,250 15,817 11,125    15,817 14,211 96,200     96,250 16,494 11,785    16,494 14,888 99,200    99,250 17,214    12,445 17,214 15,608
93,250     93,300 15,828 11,136    15,828 14,222 96,250     96,300 16,506 11,796    16,506 14,900 99,250    99,300 17,226    12,456 17,226 15,620
93,300     93,350 15,839 11,147    15,839 14,233 96,300     96,350 16,518 11,807    16,518 14,912 99,300    99,350 17,238    12,467 17,238 15,632
93,350     93,400 15,850 11,158    15,850 14,244 96,350     96,400 16,530 11,818    16,530 14,924 99,350    99,400 17,250    12,478 17,250 15,644
93,400     93,450 15,861 11,169    15,861 14,255 96,400     96,450 16,542 11,829    16,542 14,936 99,400    99,450 17,262    12,489 17,262 15,656
93,450     93,500 15,872 11,180    15,872 14,266 96,450     96,500 16,554 11,840    16,554 14,948 99,450    99,500 17,274    12,500 17,274 15,668
93,500     93,550 15,883 11,191    15,883 14,277 96,500     96,550 16,566 11,851    16,566 14,960 99,500    99,550 17,286    12,511 17,286 15,680
93,550     93,600 15,894 11,202    15,894 14,288 96,550     96,600 16,578 11,862    16,578 14,972 99,550    99,600 17,298    12,522 17,298 15,692
93,600     93,650 15,905 11,213    15,905 14,299 96,600     96,650 16,590 11,873    16,590 14,984 99,600    99,650 17,310    12,533 17,310 15,704
93,650     93,700 15,916 11,224    15,916 14,310 96,650     96,700 16,602 11,884    16,602 14,996 99,650    99,700 17,322    12,544 17,322 15,716
93,700     93,750 15,927 11,235    15,927 14,321 96,700     96,750 16,614 11,895    16,614 15,008 99,700    99,750 17,334    12,555 17,334 15,728
93,750     93,800 15,938 11,246    15,938 14,332 96,750     96,800 16,626 11,906    16,626 15,020 99,750    99,800 17,346    12,566 17,346 15,740
93,800     93,850 15,949 11,257    15,949 14,343 96,800     96,850 16,638 11,917    16,638 15,032 99,800    99,850 17,358    12,577 17,358 15,752
93,850     93,900 15,960 11,268    15,960 14,354 96,850     96,900 16,650 11,928    16,650 15,044 99,850    99,900 17,370    12,588 17,370 15,764
93,900     93,950 15,971 11,279    15,971 14,365 96,900     96,950 16,662 11,939    16,662 15,056 99,900    99,950 17,382    12,599 17,382 15,776
93,950     94,000 15,982 11,290    15,982 14,376 96,950     97,000 16,674 11,950    16,674 15,068 99,950 100,000   17,394    12,610 17,394 15,788
   94,000                                              97,000
                                                                                                                             
94,000     94,050 15,993 11,301    15,993 14,387 97,000     97,050 16,686 11,961    16,686 15,080                  $100,000
94,050     94,100 16,004 11,312    16,004 14,398 97,050     97,100 16,698 11,972    16,698 15,092                  or over
94,100     94,150 16,015 11,323    16,015 14,409 97,100     97,150 16,710 11,983    16,710 15,104                  use the Tax
94,150     94,200 16,026 11,334    16,026 14,420 97,150     97,200 16,722 11,994    16,722 15,116                  Computation
94,200     94,250 16,037 11,345    16,037 14,431 97,200     97,250 16,734 12,005    16,734 15,128                  Worksheet
94,250     94,300 16,048 11,356    16,048 14,442 97,250     97,300 16,746 12,016    16,746 15,140                            
94,300     94,350 16,059 11,367    16,059 14,453 97,300     97,350 16,758 12,027    16,758 15,152
94,350     94,400 16,070 11,378    16,070 14,464 97,350     97,400 16,770 12,038    16,770 15,164
94,400     94,450 16,081 11,389    16,081 14,475 97,400     97,450 16,782 12,049    16,782 15,176
94,450     94,500 16,092 11,400    16,092 14,486 97,450     97,500 16,794 12,060    16,794 15,188
94,500     94,550 16,103 11,411    16,103 14,497 97,500     97,550 16,806 12,071    16,806 15,200
94,550     94,600 16,114 11,422    16,114 14,508 97,550     97,600 16,818 12,082    16,818 15,212
94,600     94,650 16,125 11,433    16,125 14,519 97,600     97,650 16,830 12,093    16,830 15,224
94,650     94,700 16,136 11,444    16,136 14,530 97,650     97,700 16,842 12,104    16,842 15,236
94,700     94,750 16,147 11,455    16,147 14,541 97,700     97,750 16,854 12,115    16,854 15,248
94,750     94,800 16,158 11,466    16,158 14,552 97,750     97,800 16,866 12,126    16,866 15,260
94,800     94,850 16,169 11,477    16,169 14,563 97,800     97,850 16,878 12,137    16,878 15,272
94,850     94,900 16,180 11,488    16,180 14,574 97,850     97,900 16,890 12,148    16,890 15,284
94,900     94,950 16,191 11,499    16,191 14,585 97,900     97,950 16,902 12,159    16,902 15,296
94,950     95,000 16,202 11,510    16,202 14,596 97,950     98,000 16,914 12,170    16,914 15,308
   95,000                                              98,000
95,000     95,050 16,213 11,521    16,213 14,607 98,000     98,050 16,926 12,181    16,926 15,320
95,050     95,100 16,224 11,532    16,224 14,618 98,050     98,100 16,938 12,192    16,938 15,332
95,100     95,150 16,235 11,543    16,235 14,629 98,100     98,150 16,950 12,203    16,950 15,344
95,150     95,200 16,246 11,554    16,246 14,640 98,150     98,200 16,962 12,214    16,962 15,356
95,200     95,250 16,257 11,565    16,257 14,651 98,200     98,250 16,974 12,225    16,974 15,368
95,250     95,300 16,268 11,576    16,268 14,662 98,250     98,300 16,986 12,236    16,986 15,380
95,300     95,350 16,279 11,587    16,279 14,673 98,300     98,350 16,998 12,247    16,998 15,392
95,350     95,400 16,290 11,598    16,290 14,684 98,350     98,400 17,010 12,258    17,010 15,404
95,400     95,450 16,302 11,609    16,302 14,696 98,400     98,450 17,022 12,269    17,022 15,416
95,450     95,500 16,314 11,620    16,314 14,708 98,450     98,500 17,034 12,280    17,034 15,428
95,500     95,550 16,326 11,631    16,326 14,720 98,500     98,550 17,046 12,291    17,046 15,440
95,550     95,600 16,338 11,642    16,338 14,732 98,550     98,600 17,058 12,302    17,058 15,452
95,600     95,650 16,350 11,653    16,350 14,744 98,600     98,650 17,070 12,313    17,070 15,464
95,650     95,700 16,362 11,664    16,362 14,756 98,650     98,700 17,082 12,324    17,082 15,476
95,700     95,750 16,374 11,675    16,374 14,768 98,700     98,750 17,094 12,335    17,094 15,488
95,750     95,800 16,386 11,686    16,386 14,780 98,750     98,800 17,106 12,346    17,106 15,500
95,800     95,850 16,398 11,697    16,398 14,792 98,800     98,850 17,118 12,357    17,118 15,512
95,850     95,900 16,410 11,708    16,410 14,804 98,850     98,900 17,130 12,368    17,130 15,524
95,900     95,950 16,422 11,719    16,422 14,816 98,900     98,950 17,142 12,379    17,142 15,536
95,950     96,000 16,434 11,730    16,434 14,828 98,950     99,000 17,154 12,390    17,154 15,548

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)                                                                                                                        123

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Computation Worksheet—Line 16

        See Line 16 in the Instructions for Form 1040 to see if you must use the worksheet below to figure your tax.
CAUTION!

Note. If you’re required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified 
Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax 
Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you’re looking up. Enter the 
result on the appropriate line of the form or worksheet that you’re completing.

Section A—Use if your filing status is Single. Complete the row below that applies to you.
                                                                                                                            Tax. 
                                                                                                                            Subtract (d) from (c). 
                                               (a)                (b)                     (c)                             Enter the result here and 
           Taxable income.              Enter the amount from     Multiplication          Multiply           (d)            on Form 1040 or 
              If line 15 is—                   line 15.           amount                   (a) by (b) Subtraction amount    1040-SR, line 16.
At least $100,000 but not over $182,100  $                         × 24% (0.24)        $                      $  6,600.00  $
Over $182,100 but not over $231,250      $                         × 32% (0.32)        $                      $ 21,168.00  $
Over $231,250 but not over $578,125      $                         × 35% (0.35)        $                      $ 28,105.50  $
Over $578,125                            $                        × 37% (0.37)         $                     $ 39,668.00   $

Section B—Use if your filing status is Married filing jointly   Qualifying surviving spouse.or  Complete the row below that applies to you.
                                                                                                                            Tax. 
                                                                                                                            Subtract (d) from (c). 
                                               (a)                (b)                     (c)                             Enter the result here and 
           Taxable income.                     Enter the amount   Multiplication          Multiply           (d)            on Form 1040 or 
              If line 15 is—                   from line 15.      amount                   (a) by (b) Subtraction amount    1040-SR, line 16.
At least $100,000 but not over $190,750  $                         × 22% (0.22)   $                           $  9,385.00  $
Over $190,750 but not over $364,200      $                         × 24% (0.24)   $                           $ 13,200.00  $
Over $364,200 but not over $462,500      $                         × 32% (0.32)   $                          $ 42,336.00   $
Over $462,500 but not over $693,750      $                         × 35% (0.35)   $                           $ 56,211.00  $
Over $693,750                            $                        × 37% (0.37)    $                           $ 70,086.00  $

Section C—Use if your filing status is Married filing separately. Complete the row below that applies to you.
                                                                                                                            Tax. 
                                                                                                                            Subtract (d) from (c). 
                                               (a)                (b)                     (c)                             Enter the result here and 
           Taxable income.              Enter the amount from     Multiplication          Multiply           (d)            on Form 1040 or 
              If line 15 is—                   line 15.           amount                   (a) by (b) Subtraction amount    1040-SR, line 16.
At least $100,000 but not over $182,100  $                         × 24% (0.24)   $                           $  6,600.00  $
Over $182,100 but not over $231,250      $                         × 32% (0.32)   $                           $ 21,168.00  $
Over $231,250 but not over $346,875      $                         × 35% (0.35)   $                           $ 28,105.50  $
Over $346,875                            $                        × 37% (0.37)    $                           $ 35,043.00  $

Section D—Use if your filing status is Head of household. Complete the row below that applies to you.
                                                                                                                            Tax. 
                                                                                                                            Subtract (d) from (c). 
                                               (a)                                        (c)                             Enter the result here and 
           Taxable income.              Enter the amount          (b)                     Multiply           (d)            on Form 1040 or 
              If line 15 is—                   from line 15.    Multiplication amount      (a) by (b) Subtraction amount    1040-SR, line 16.
At least $100,000 but not over $182,100  $                         × 24% (0.24)        $                      $  8,206.00  $
Over $182,100 but not over $231,250      $                         × 32% (0.32)        $                      $ 22,774.00  $
Over $231,250 but not over $578,100      $                         × 35% (0.35)        $                      $ 29,711.50  $
Over $578,100                            $                        × 37% (0.37)         $                      $ 41,273.50  $

124                                                                                                                         Publication 17 (2023)

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2023 Tax Rate Schedules

        The Tax Rate Schedules are shown so you can see the tax rate that applies to all levels of taxable income. Don’t use them to figure your tax. Instead, 
        see chapter 13.
CAUTION!

Schedule X—If your filing status is Single
If your taxable income is:                                     The tax is:
 Over—                     But not over—                                                   of the amount over—
            $0             $11,000                             - - - - - - - 10%                                         $0
        11,000             44,725                              $1,100.00 + 12%                                           11,000
        44,725             95,375                              5,147.00 + 22%                                            44,725
        95,375             182,100                             16,290.00 + 24%                                           95,375
        182,100            231,250                             37,104.00 + 32%                                           182,100
        231,250            578,125                             52,832.00 + 35%                                           231,250
        578,125            - - - - - - -                       174,238.25 + 37%                                          578,125

Schedule Y-1—If your filing status is Married filing jointly or Qualifying surviving spouse
If your taxable income is:                                     The tax is:
 Over—                     But not over—                                                   of the amount over—
            $0             $22,000                             - - - - - - - 10%                                         $0
        22,000             89,450                              $2,200.00 + 12%                                           22,000
        89,450             190,750                             10,294.00 + 22%                                           89,450
        190,750            364,200                             32,580.00 + 24%                                           190,750
        364,200            462,500                             74,208.00 + 32%                                           364,200
        462,500            693,750                             105,664.00 + 35%                                          462,500
        693,750            - - - - - - -                       186,601.50 + 37%                                          693,750

Schedule Y-2—If your filing status is Married filing separately
If your taxable income is:                                     The tax is:
 Over—                     But not over—                                                   of the amount over—
            $0             $11,000                             - - - - - - - 10%                                         $0
        11,000             44,725                              $1,100.00 + 12%                                           11,000
        44,725             95,375                              5,147.00 + 22%                                            44,725
        95,375             182,100                             16,290.00 + 24%                                           95,375
        182,100            231,250                             37,104.00 + 32%                                           182,100
        231,250            346,875                             52,832.00 + 35%                                           231,250
        346,875            - - - - - - -                       93,300.75 + 37%                                           346,875

Schedule Z—If your filing status is Head of household
If your taxable income is:                                     The tax is:
 Over—                     But not over—                                                   of the amount over—
            $0             $15,700                             - - - - - - - 10%                                         $0
        15,700             59,850                              $1,570.00 + 12%                                           15,700
        59,850             95,350                              6,868.00 + 22%                                            59,850
        95,350             182,100                             14,678.00 + 24%                                           95,350
        182,100            231,250                             35,498.00 + 32%                                           182,100
        231,250            578,100                             51,226.00 + 35%                                           231,250
        578,100            - - - - - - -                       172,623.50 + 37%                                          578,100

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Your Rights as a Taxpayer

This section explains your rights as ers have the right to know when the as Forms 1099 and W-2, on stud- Your Appeal Rights and How to
a taxpayer and the processes for IRS has finished an audit. ies of past examinations, or on cer- Prepare a Protest if You Don't
examination, appeal, collection, tain issues identified by compli- Agree, and Pub. 556.
and refunds. 7. The Right to Privacy. Taxpay- ance projects. Second, we use If you do not wish to use the
ers have the right to expect that information from outside sources IRS Independent Office of Appeals
any IRS inquiry, examination, or that indicates that a return may or disagree with its findings, you
The Taxpayer Bill of enforcement action will comply have incorrect amounts. These may be able to take your case to
with the law and be no more intru- sources may include newspapers, the U.S. Tax Court, U.S. Court of
Rights sive than necessary, and will re- public records, and individuals. If Federal Claims, or the U.S. District
1. The Right to Be Informed. spect all due process rights, includ- we determine that the information Court where you live. If you take
Taxpayers have the right to know ing search and seizure protections, is accurate and reliable, we may your case to court, the IRS will
what they need to do to comply and will provide, where applicable, use it to select a return for exami- have the burden of proving certain
with the tax laws. They are entitled a collection due process hearing. nation. facts if you kept adequate records
to clear explanations of the laws 8. The Right to Confidentiality. Pub. 556, Examination of Re- to show your tax liability, cooper-
and IRS procedures in all tax Taxpayers have the right to expect turns, Appeal Rights, and Claims ated with the IRS, and meet certain
forms, instructions, publications, that any information they provide to for Refund, explains the rules and other conditions. If the court agrees
notices, and correspondence. the IRS will not be disclosed unless procedures that we follow in exami- with you on most issues in your
They have the right to be informed authorized by the taxpayer or by nations. The following sections case and finds that our position
of IRS decisions about their tax ac- law. Taxpayers have the right to ex- give an overview of how we con- was largely unjustified, you may be
counts and to receive clear explan- pect appropriate action will be duct examinations. able to recover some of your ad-
ations of the outcomes. taken against employees, return ministrative and litigation costs.
2. The Right to Quality Service. preparers, and others who wrong- By mail. We handle many exami- You will not be eligible to recover
Taxpayers have the right to receive fully use or disclose taxpayer return nations and inquiries by mail. We these costs unless you tried to re-
prompt, courteous, and professio- information. will send you a letter with either a solve your case administratively, in-
request for more information or a cluding going through the appeals
nal assistance in their dealings with 9. The Right to Retain Repre- reason why we believe a change to system, and you gave us the infor-
the IRS, to be spoken to in a way sentation. Taxpayers have the your return may be needed. You mation necessary to resolve the
they can easily understand, to re- right to retain an authorized repre- can respond by mail or you can re- case.
ceive clear and easily understand- sentative of their choice to repre- quest a personal interview with an
able communications from the IRS, sent them in their dealings with the examiner. If you mail us the re-
and to speak to a supervisor about IRS. Taxpayers have the right to quested information or provide an Collections
inadequate service. seek assistance from a Low In- explanation, we may or may not
3. The Right to Pay No More come Taxpayer Clinic if they cannot agree with you, and we will explain Pub. 594, The IRS Collection Proc-
than the Correct Amount of Tax. afford representation. the reasons for any changes. Do ess, explains your rights and re-
Taxpayers have the right to pay 10. The Right to a Fair and Just not hesitate to write to us about sponsibilities regarding payment of
only the amount of tax legally due, Tax System. Taxpayers have the anything you do not understand. federal taxes. It describes the fol-
lowing.
including interest and penalties, right to expect the tax system to By interview. If we notify you that
and to have the IRS apply all tax consider facts and circumstances we will conduct your examination • What to do when you owe
payments properly. that might affect their underlying li- through a personal interview, or taxes. It describes what to do
4. The Right to Challenge the abilities, ability to pay, or ability to you request such an interview, you if you get a tax bill and what to
IRS’s Position and Be Heard. provide information timely. Taxpay- have the right to ask that the ex- do if you think your bill is
Taxpayers have the right to raise ers have the right to receive assis- amination take place at a reasona- wrong. It also covers making
objections and provide additional tance from the Taxpayer Advocate ble time and place that is conven- installment payments, delay-
documentation in response to for- Service if they are experiencing fi- ient for both you and the IRS. If our ing collection action, and sub-
mal IRS actions or proposed ac- nancial difficulty or if the IRS has examiner proposes any changes to mitting an offer in compro-
tions, to expect that the IRS will not resolved their tax issues prop- your return, they will explain the mise.
consider their timely objections erly and timely through its normal reasons for the changes. If you do • IRS collection actions. It cov-
and documentation promptly and channels. not agree with these changes, you ers liens, releasing a lien, lev-
fairly, and to receive a response if can meet with the examiner's su- ies, releasing a levy, seizures
the IRS does not agree with their pervisor. and sales, and release of
position. Examinations property.
Repeat examinations. If we ex-
5. The Right to Appeal an IRS (Audits) amined your return for the same • IRS certification to the State
Decision in an Independent Fo- We accept most taxpayers’ returns items in either of the 2 previous Department of a seriously de-
rum. Taxpayers are entitled to a as filed. If we inquire about your re- years and proposed no change to linquent tax debt, which will
fair and impartial administrative ap- turn or select it for examination, it your tax liability, contact us as soon generally result in denial of a
peal of most IRS decisions, includ- does not suggest that you are dis- as possible so we can see if we passport application and may
ing many penalties, and have the honest. The inquiry or examination should discontinue the examina- lead to revocation of a pass-
right to receive a written response may or may not result in more tax. tion. port.
regarding the IRS Independent Of- We may close your case without Your collection appeal rights
fice of Appeals' decision. Taxpay- change; or, you may receive a re- Appeals are explained in detail in Pub.
ers generally have the right to take fund. 1660, Collection Appeal Rights.
their cases to court. The process of selecting a re- If you do not agree with the exam- Innocent spouse relief. Gener-
6. The Right to Finality. Taxpay- turn for examination usually begins iner's proposed changes, you can ally, both you and your spouse are
ers have the right to know the max- in one of two ways. First, we use appeal them to the IRS Independ- each responsible for paying the full
imum amount of time they have to computer programs to identify re- ent Office of Appeals. Most differ- amount of tax, interest, and penal-
challenge the IRS’s position as well turns that may have incorrect ences can be settled without ex- ties due on your joint return. How-
as the maximum amount of time amounts. These programs may be pensive and time-consuming court ever, if you qualify for innocent
the IRS has to audit a particular tax based on information returns, such trials. Your appeal rights are ex- spouse relief, you may be relieved
year or collect a tax debt. Taxpay- plained in detail in both Pub. 5,

126 Publication 17 (2023)

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of part or all of the joint liability. To  sons, you have a right to request a        Taxpayer Advocate                            How To Get Tax Help.
request  relief,  you  must  file  Form    list  of  those  contacted.  Your  re-                                                • Forms and Publications:
8857,   Request      for Innocent          quest  can  be  made  by  telephone,       Service (TAS)                                IRS.gov/Forms and
Spouse  Relief.  For  more  informa-       in  writing,  or  during  a  personal  in-                                              IRS.gov/OrderForms.
tion on innocent spouse relief, see        terview.                                   TAS  is  an independent  organiza-
Pub. 971, Innocent Spouse Relief,                                                     tion  within  the  IRS  that  can  help    • Small Business Ombudsman: 
and Form 8857.                                                                        protect  your  taxpayer  rights.  They       A small business entity can 
                                           Refunds                                    can offer you help if your tax prob-         participate in the regulatory 
Potential  third-party  contacts.                                                     lem  is  causing  a  hardship,  or           process and comment on en-
Generally, the IRS will deal directly      You  may  file  a  claim  for  refund  if                                               forcement actions of the IRS 
with  you  or  your  duly  authorized      you  think  you  paid  too  much  tax.     you've  tried  but  haven't  been  able 
representative. However, we some-          You  must  generally  file  the  claim     to  resolve  your  problem  with  the        by calling 888-REG-FAIR.
times talk with other persons if we        within  3  years  from  the  date  you     IRS.  If  you  qualify  for  their  assis- • Treasury Inspector General for 
need  information  that  you  have         filed your original return or 2 years      tance, which is always free, will do         Tax Administration: You can 
been unable to provide, or to verify       from  the  date  you  paid  the  tax,      everything possible to help you. Go          confidentially report miscon-
information we have received. If we        whichever  is  later.  The  law  gener-    to TaxpayerAdvocate.IRS.gov  or              duct, waste, fraud, or abuse 
do contact other persons, such as          ally provides for interest on your re-     call 877-777-4778.                           by an IRS employee by calling 
a neighbor, a bank, an employer, or        fund if it is not paid within 45 days                                                   800-366-4484. People who 
employees, we will generally need          of the date you filed your return or       Tax Information                              are deaf, hard of hearing, or 
to  tell  them  limited  information,      claim  for  refund.  Pub.  556,  has                                                    have a speech disability and 
such  as  your  name.  The  law  pro-      more information on refunds.               The  IRS  provides  the  following           who have access to TTY/TDD 
hibits us from disclosing any more         If you were due a refund but you           sources  for  forms,  publications,          equipment can call 
information  than  is  necessary  to       did not file a return, you must gen-       and additional information.                  800-877-8339. You can re-
obtain or verify the information we        erally file your return within 3 years                                                  main anonymous.
are  seeking.  Our  need  to  contact      from  the  date  the  return  was  due     •  Internet: IRS.gov.
other  persons  may  continue  as          (including  extensions)  to  get  that     •  Tax Questions:
long  as  there  is  activity  in  your    refund.                                       IRS.gov/Help/Tax-Law-
case.  If  we  do  contact  other  per-                                                  Questions and

How To Get Tax Help

If  you  have  questions  about  a  tax      preparation, e-filing, and di-                Also,  the  IRS  offers  Free               Getting answers to your 
issue; need help preparing your tax          rect deposit or payment op-                 Fillable  Forms,  which  can  be              tax    questions.        On 
return;  or  want  to  download  free        tions.                                      completed  online  and  then                  IRS.gov,  you  can  get 
publications, forms, or instructions,      • VITA. The Volunteer Income                  e-filed regardless of income.           up-to-date  information  on  current 
                                                                                                                                 events and changes in tax law.
go to IRS.gov to find resources that         Tax Assistance (VITA) pro-               Using  online  tools  to  help  pre-
can help you right away.                     gram offers free tax help to             pare your return.  Go to IRS.gov/          • IRS.gov/Help: A variety of 
Preparing and filing your tax re-            people with low-to-moderate              Tools for the following.                     tools to help you get answers 
turn.  After receiving all your wage         incomes, persons with disabil-                                                        to some of the most common 
and  earnings  statements  (Forms            ities, and limited-Eng-                  •  The Earned Income Tax Credit 
W-2,  W-2G,  1099-R,  1099-MISC,             lish-speaking taxpayers who                 Assistant IRS.gov/ (                      tax questions.
1099-NEC,  etc.);  unemployment              need help preparing their own               EITCAssistant) determines if            • IRS.gov/ITA: The Interactive 
compensation statements (by mail             tax returns. Go to IRS.gov/                 you’re eligible for the earned            Tax Assistant, a tool that will 
or in a digital format) or other gov-        VITA, download the free                     income credit (EIC).                      ask you questions and, based 
ernment payment          statements          IRS2Go app, or call                      •  The Online EIN Application                on your input, provide an-
(Form  1099-G);  and  interest,  divi-       800-906-9887 for information                (IRS.gov/EIN) helps you get               swers on a number of tax top-
dend,  and  retirement  statements           on free tax return preparation.             an employer identification                ics.
from  banks  and  investment  firms        • TCE. The Tax Counseling for                 number (EIN) at no cost.                • IRS.gov/Forms: Find forms, in-
(Forms 1099), you have several op-           the Elderly (TCE) program of-            •  The Tax Withholding                       structions, and publications. 
tions  to  choose  from  to  prepare         fers free tax help for all tax-             Estimator IRS.gov/W4App (  )              You will find details on the 
and  file  your  tax  return.  You  can      payers, particularly those who              makes it easier for you to esti-          most recent tax changes and 
prepare the tax return yourself, see         are 60 years of age and older.              mate the federal income tax               interactive links to help you 
if  you  qualify  for  free  tax  prepara-   TCE volunteers specialize in                you want your employer to                 find answers to your ques-
tion,  or  hire  a  tax  professional  to    answering questions about                   withhold from your paycheck.              tions.
prepare your return.                         pensions and retirement-rela-               This is tax withholding. See            • You may also be able to ac-
Free options for tax preparation.            ted issues unique to seniors.               how your withholding affects              cess tax information in your 
Your  options  for  preparing  and  fil-     Go to IRS.gov/TCE or down-                  your refund, take-home pay, or            e-filing software.
ing your return online or in your lo-        load the free IRS2Go app for                tax due.
cal  community,  if  you  qualify,  in-      information on free tax return           •  The First-Time Homebuyer                Need  someone  to  prepare  your 
clude the following.                         preparation.                                Credit Account Look-up                  tax  return? There  are  various 
• Free File. This program lets             • MilTax. Members of the U.S.                 (IRS.gov/HomeBuyer) tool                types  of  tax  return  preparers,  in-
  you prepare and file your fed-             Armed Forces and qualified                  provides information on your            cluding  enrolled  agents,  certified 
  eral individual income tax re-             veterans may use MilTax, a                  repayments and account bal-             public  accountants  (CPAs),  ac-
  turn for free using software or            free tax service offered by the             ance.                                   countants,  and  many  others  who 
  Free File Fillable Forms. How-             Department of Defense                    •  The Sales Tax Deduction                 don’t have professional credentials. 
  ever, state tax preparation                through Military OneSource.                 Calculator IRS.gov/SalesTax (  )        If  you  choose  to  have  someone 
  may not be available through               For more information, go to                 figures the amount you can              prepare  your  tax  return,  choose 
  Free File. Go to IRS.gov/                  MilitaryOneSource                           claim if you itemize deduc-
  FreeFile to see if you qualify             (MilitaryOneSource.mil/                     tions on Schedule A (Form 
  for free online federal tax                MilTax).                                    1040).

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that preparer wisely. A paid tax pre- Free Over-the-Phone Interpreter cess information about your federal nels to request or verify per-
parer is: (OPI) Service. The IRS is com- tax account. sonal or financial information.
• Primarily responsible for the mitted to serving taxpayers with • View the amount you owe and This includes requests for per-
overall substantive accuracy limited-English proficiency (LEP) a breakdown by tax year. sonal identification numbers
of your return, by offering OPI services. The OPI (PINs), passwords, or similar
Service is a federally funded pro- • See payment plan details or information for credit cards,
• Required to sign the return, gram and is available at Taxpayer apply for a new payment plan. banks, or other financial ac-
and Assistance Centers (TACs), most • Make a payment or view 5 counts.
• Required to include their pre- IRS offices, and every VITA/TCE years of payment history and • Go to IRS.gov/IdentityTheft,
parer tax identification number tax return site. The OPI Service is any pending or scheduled the IRS Identity Theft Central
(PTIN). accessible in more than 350 lan- payments. webpage, for information on
guages.
Although the tax preparer • Access your tax records, in- identity theft and data security
Accessibility Helpline available cluding key data from your protection for taxpayers, tax
! always signs the return, for taxpayers with disabilities. most recent tax return, and professionals, and busi-
CAUTION you're ultimately responsi-
ble for providing all the information Taxpayers who need information transcripts. nesses. If your SSN has been
required for the preparer to accu- about accessibility services can lost or stolen or you suspect
rately prepare your return and for call 833-690-0598. The Accessibil- • View digital copies of select you’re a victim of tax-related
the accuracy of every item reported ity Helpline can answer questions notices from the IRS. identity theft, you can learn
on the return. Anyone paid to pre- related to current and future acces- • Approve or reject authoriza- what steps you should take.
pare tax returns for others should sibility products and services avail- tion requests from tax profes- • Get an Identity Protection PIN
have a thorough understanding of able in alternative media formats sionals. (IP PIN). IP PINs are six-digit
tax matters. For more information (for example, braille, large print, au- • View your address on file or numbers assigned to taxpay-
on how to choose a tax preparer, dio, etc.). The Accessibility Help- manage your communication ers to help prevent the misuse
go to Tips for Choosing a Tax line does not have access to your preferences. of their SSNs on fraudulent
Preparer on IRS.gov. IRS account. For help with tax law, federal income tax returns.
refunds, or account-related issues, Get a transcript of your return. When you have an IP PIN, it
go to IRS.gov/LetUsHelp. With an online account, you can prevents someone else from
Employers can register to use access a variety of information to filing a tax return with your
Business Services Online. The Note. Form 9000, Alternative help you during the filing season. SSN. To learn more, go to
Social Security Administration Media Preference, or Form You can get a transcript, review IRS.gov/IPPIN.
(SSA) offers online service at 9000(SP) allows you to elect to re- your most recently filed tax return,
SSA.gov/employer for fast, free, ceive certain types of written corre- and get your adjusted gross in- Ways to check on the status of
and secure W-2 filing options to spondence in the following formats. come. Create or access your on- your refund.
CPAs, accountants, enrolled line account at IRS.gov/Account. • Go to IRS.gov/Refunds.
agents, and individuals who proc- • Standard Print.
ess Form W-2, Wage and Tax • Large Print. Tax Pro Account. This tool lets • Download the official IRS2Go
your tax professional submit an au- app to your mobile device to
Statement, and Form W-2c, Cor- • Braille. thorization request to access your check your refund status.
rected Wage and Tax Statement.
• Audio (MP3). individual taxpayer IRS online ac-
IRS social media. Go to IRS.gov/ count. For more information, go to • Call the automated refund hot-
SocialMedia to see the various so- • Plain Text File (TXT). IRS.gov/TaxProAccount. line at 800-829-1954.
cial media tools the IRS uses to • Braille Ready File (BRF). Using direct deposit. The safest The IRS can’t issue re-
share the latest information on tax ! funds before mid-February
changes, scam alerts, initiatives, Disasters. Go to IRS.gov/ and easiest way to receive a tax re- CAUTION
products, and services. At the IRS, DisasterRelief to review the availa- fund is to e-file and choose direct for returns that claimed the
privacy and security are our high- ble disaster tax relief. deposit, which securely and elec- EIC or the additional child tax
tronically transfers your refund di- credit (ACTC). This applies to the
est priority. We use these tools to Getting tax forms and publica- rectly into your financial account. entire refund, not just the portion
share public information with you. tions. Go to IRS.gov/Forms to Direct deposit also avoids the pos- associated with these credits.
Don’t post your social security view, download, or print all the sibility that your check could be
number (SSN) or other confidential forms, instructions, and publica- lost, stolen, destroyed, or returned Making a tax payment. Pay-
information on social media sites. tions you may need. Or, you can go undeliverable to the IRS. Eight in ments of U.S. tax must be remitted
Always protect your identity when to IRS.gov/OrderForms to place an 10 taxpayers use direct deposit to to the IRS in U.S. dollars. Digital
using any social networking site. order. receive their refunds. If you don’t assets are not accepted. Go to
The following IRS YouTube IRS.gov/Payments for information
channels provide short, informative Getting tax publications and in- have a bank account, go to
videos on various tax-related top- structions in eBook format. IRS.gov/DirectDeposit for more in- on how to make a payment using
ics in English, Spanish, and ASL. Download and view most tax publi- formation on where to find a bank any of the following options.
cations and instructions (including or credit union that can open an ac- • IRS Direct Pay: Pay your indi-
• Youtube.com/irsvideos. the Instructions for Form 1040) on count online. vidual tax bill or estimated tax
payment directly from your
• Youtube.com/ mobile devices as eBooks at Reporting and resolving your checking or savings account
irsvideosmultilingua. IRS.gov/eBooks. tax-related identity theft issues. at no cost to you.
IRS eBooks have been tested
• Youtube.com/irsvideosASL. using Apple's iBooks for iPad. Our • Tax-related identity theft hap- Debit Card, Credit Card, or
Watching IRS videos. The IRS eBooks haven’t been tested on pens when someone steals •
Digital Wallet: Choose an ap-
Video portal (IRSVideos.gov) con- other dedicated eBook readers, your personal information to proved payment processor to
tains video and audio presenta- and eBook functionality may not commit tax fraud. Your taxes pay online or by phone.
tions for individuals, small busi- operate as intended. can be affected if your SSN is
used to file a fraudulent return • Electronic Funds Withdrawal:
nesses, and tax professionals. Access your online account (in- or to claim a refund or credit. Schedule a payment when fil-
Online tax information in other dividual taxpayers only). Go to ing your federal taxes using
languages. You can find informa- IRS.gov/Account to securely ac- • The IRS doesn’t initiate con- tax return preparation soft-
tion on IRS.gov/MyLanguage if tact with taxpayers by email, ware or through a tax profes-
English isn’t your native language. text messages (including sional.
shortened links), telephone
calls, or social media chan-

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• Electronic Federal Tax Understanding an IRS notice or rights. TAS strives to ensure that • Download Pub. 1546, The
Payment System: Best option letter you’ve received. Go to every taxpayer is treated fairly and Taxpayer Advocate Service Is
for businesses. Enrollment is IRS.gov/Notices to find additional that you know and understand your Your Voice at the IRS, availa-
required. information about responding to an rights under the Taxpayer Bill of ble at IRS.gov/pub/irs-pdf/
• Check or Money Order: Mail IRS notice or letter. Rights. p1546.pdf;
your payment to the address Responding to an IRS notice or • Call the IRS toll free at
listed on the notice or instruc- letter. You can now upload re- How Can You Learn 800-TAX-FORM
tions. sponses to all notices and letters About Your Taxpayer (800-829-3676) to order a
• Cash: You may be able to pay using the Document Upload Tool. Rights? copy of Pub. 1546;
your taxes with cash at a par- For notices that require additional The Taxpayer Bill of Rights de- • Check your local directory; or
ticipating retail store. action, taxpayers will be redirected scribes 10 basic rights that all tax- • Call TAS toll free at
appropriately on IRS.gov to take
• Same-Day Wire: You may be further action. To learn more about payers have when dealing with the 877-777-4778.
able to do same-day wire from the tool, go to IRS.gov/Upload. IRS. Go to
your financial institution. Con- TaxpayerAdvocate.IRS.gov to help
tact your financial institution Note. You can use Sched- you understand what these rights How Else Does TAS Help
for availability, cost, and time ule LEP (Form 1040), Request for mean to you and how they apply. Taxpayers?
frames. Change in Language Preference, These are your rights. Know them. TAS works to resolve large-scale
to state a preference to receive no- Use them. problems that affect many taxpay-
Note. The IRS uses the latest tices, letters, or other written com- ers. If you know of one of these
encryption technology to ensure munications from the IRS in an al- What Can TAS Do for broad issues, report it to TAS at
that the electronic payments you ternative language. You may not You? IRS.gov/SAMS. Be sure to not in-
clude any personal taxpayer infor-
make online, by phone, or from a immediately receive written com- TAS can help you resolve problems mation.
mobile device using the IRS2Go munications in the requested lan- that you can’t resolve with the IRS.
app are safe and secure. Paying guage. The IRS’s commitment to And their service is free. If you
electronically is quick, easy, and LEP taxpayers is part of a qualify for their assistance, you will Low Income
faster than mailing in a check or multi-year timeline that began pro- be assigned to one advocate who Taxpayer Clinics
money order. viding translations in 2023. You will will work with you throughout the
What if I can’t pay now? Go to continue to receive communica- process and will do everything pos- (LITCs)
IRS.gov/Payments for more infor- tions, including notices and letters, sible to resolve your issue. TAS can
mation about your options. in English until they are translated help you if: LITCs are independent from the
to your preferred language. IRS and TAS. LITCs represent indi-
• Apply for an online payment • Your problem is causing finan- viduals whose income is below a
agreement IRS.gov/OPA ( ) to Contacting your local TAC. cial difficulty for you, your fam- certain level and who need to re-
meet your tax obligation in Keep in mind, many questions can ily, or your business; solve tax problems with the IRS.
monthly installments if you be answered on IRS.gov without LITCs can represent taxpayers in
can’t pay your taxes in full to- visiting a TAC. Go to IRS.gov/ • You face (or your business is
day. Once you complete the LetUsHelp for the topics people facing) an immediate threat of audits, appeals, and tax collection
online process, you will re- ask about most. If you still need adverse action; or disputes before the IRS and in
court. In addition, LITCs can pro-
ceive immediate notification of help, TACs provide tax help when a • You’ve tried repeatedly to con- vide information about taxpayer
whether your agreement has tax issue can’t be handled online or tact the IRS but no one has re- rights and responsibilities in differ-
been approved. by phone. All TACs now provide sponded, or the IRS hasn’t re- ent languages for individuals who
service by appointment, so you’ll sponded by the date speak English as a second lan-
• Use the Offer in Compromise know in advance that you can get promised. guage. Services are offered for free
Pre-Qualifier to see if you can the service you need without long or a small fee. For more information
settle your tax debt for less wait times. Before you visit, go to or to find an LITC near you, go to
than the full amount you owe. IRS.gov/TACLocator to find the How Can You Reach TAS?
For more information on the nearest TAC and to check hours, TAS has offices in every state, the the LITC page at
Offer in Compromise program, available services, and appoint- District of Columbia, and Puerto TaxpayerAdvocate.IRS.gov/LITC or
go to IRS.gov/OIC. ment options. Or, on the IRS2Go Rico. To find your advocate’s num- see IRS Pub. 4134, Low Income
Filing an amended return. Go to app, under the Stay Connected ber: Taxpayer Clinic List, at
IRS.gov/pub/irs-pdf/p4134.pdf.
IRS.gov/Form1040X for information tab, choose the Contact Us option • Go to
and updates. and click on “Local Offices.” TaxpayerAdvocate.IRS.gov/
Checking the status of your Contact-Us;
amended return. Go to IRS.gov/ The Taxpayer
WMAR to track the status of Form
1040-X amended returns. Advocate Service
It can take up to 3 weeks (TAS) Is Here To
! from the date you filed Help You
CAUTION your amended return for it
to show up in our system, and pro- What Is TAS?
cessing it can take up to 16 weeks. TAS is an independent organiza-
tion within the IRS that helps tax-
payers and protects taxpayer

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                          To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                     See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                                           Distribution required at age   Assistance (See Tax help)              Reimbursements    39 47, 
10% tax for early withdrawal from             72  86 88,                  Assistance, tax (See Tax help)         Returning excess business 
  IRA or retirement plan              Roth IRAs    89 92,                 ATIN (Adoption taxpayer                    expenses    39
  (See Early withdrawal from          Standard deduction for age 65 or      identification number)     13       Business tax credits:
  deferred interest account,               older 93                       Attachment of wages     13             Claim for refund  20
  subheading: Tax on)                Age test 28                          Attachments to return   14
2023 Tax Rate Schedules     125      Agents:                              Attorney contingency fee:             C
401(k) plans:                         Income paid to   13                   As income    75
  Tax treatment of contributions  50  Signing return   15                 Attorney fees, whistleblower          Cafeteria plans  53
403(b) plans:                        Agricultural workers (See Farmers)     awards:                             Calendar year taxpayers:
  Rollovers  85 91,                  Agriculture (See Farming)              As income    75                      Accounting periods     11 13 48, , 
529 plans (See Qualified tuition     Alaska Permanent Fund                Attorneys' fees 103 104,               Filing due date 11
  programs)                           dividends    74                     Automatic extension of time to        California Nonoccupational 
59 1/2 rule:                         Alaska Unemployment                    file  11                             Disability Benefit Fund    98
  Age 59 1/2 rule  88                 Compensation Fund       98            Form 4868    11                     Campaign contributions     74
60-day rule  84                      Alcoholic beverages:                 Awards (See Prizes and awards)         Presidential Election Campaign 
72 rule:                              IRA prohibited transactions in   87                                            Fund   14
                                                                                                                Campaign expenses     104
  Age 72 rule 86                     Aliens:                              B                                     Canada:
                                      Dual-status (See Dual-status 
A                                          taxpayers)                     Babysitting 47                         Resident of   28 34, 
Abroad, citizens traveling or         Filing required  8                  Back pay, award for   47              Cancellation of debt  68
  working    8 52,                    Nonresident (See Nonresident          Emotional distress damages           Exceptions to treatment as 
 (See also Foreign employment)             aliens)                              under title VII of Civil Rights      income   68
Absence, temporary    29 34,          Resident (See Resident aliens)            Act of 1964  75                 Capital assets:
Accelerated death benefits     70    Alimony:                             Backup withholding    40 44 55, ,      Coal and iron ore 72
Accident insurance   48               Reporting of income    74             Penalties 41                        Capital expenses  36
  Cafeteria plans  53                Alternative filing methods:          Bad debts:                            Capital gains or losses:
  Long-term care   48 53,             Electronic (See E-file)               Claim for refund 19                  Hobbies, sales from 
Accidental death benefits      49    Alternative minimum tax                Recovery  71                             collections 76
Accounting methods     13             (AMT)    108                        Balance due    108                     Sale of personal items   77
  Accrual method (See Accrual        Ambulance service personnel:         Bankruptcy:                           Carpools  74
     method taxpayers)                Life insurance proceeds when          Canceled debt not deemed to be      Carrybacks:
  Cash method (See Cash method             death in line of duty 70             income   69                      Business tax credit 
     taxpayers)                      Amended returns   18 19,             Banks:                                     carrybacks  20
Accounting periods   13              (See also Form 1040-X)                 IRAs with 79                        Cars 50 77, 
  Calendar year    11 13 48, ,        Itemized deduction, change to       Barter income   67                    (See also Travel and transportation)
                                           standard deduction    95         Definition of bartering 67           Personal property taxes on, 
  Change in, standard deduction       Standard deduction, change to         Form 1099-B    68                        deduction of  101
     not allowed   93                      itemized deductions   95       Basis:                                Cash:
  Fiscal year 13 42,                 American citizens abroad    8          Cost basis:                          Rebates    74
  Fringe benefits  48                (See also Citizens outside U.S.)                                           Cash method taxpayers      13
Accrual method taxpayers       13     Employment (See Foreign                   IRAs for nondeductible 
  Taxes paid during tax year,              employment)                             contributions  83 86,         Real estate transactions, tax 
     deduction of   97               American Indians (See Indians)       Beneficiaries  75                          allocation  98
                                                                          (See also Estate beneficiaries)        Taxes paid during tax year, 
Accuracy-related penalties     20    American Samoa:                      (See also Trust beneficiaries)             deduction of  97
Activities not for profit 74          Income from   8                     Bequests   75 76,                     Cash rebates  74
Address  17                          Annuities:                           (See also Estate beneficiaries)       Casualty insurance:
  Change of   18                      Decedent's unrecovered              (See also Inheritance)                 Reimbursements from      74
  Foreign  17                              investment in  14              Birth of child 29                     Casualty losses  102 105, 
  P.O. box   17                       IRAs as   79                          Head of household, qualifying       Certificates of deposit (CDs)   61, 
Adjusted gross income (AGI):          Unrecovered investment     106            person to file as 25             78
  Modified (See Modified adjusted     Withholding   14 40,                  Social security number to be        (See also Individual retirement 
     gross income (MAGI))            Annulled marriages:                        obtained  37                     arrangements (IRAs))
  Retirement savings contribution     Filing status 22                    Birth of dependent    34              Change of address  18
     credit  23                      Anthrax incidents (See Terrorist     Blind persons:                        Change of name   13 44, 
Adjustments   108                     attacks)                              Exemption from withholding    39    Chaplains:
Administrators, estate               Antiques (See Collectibles)            Standard deduction for   93 94,      Life insurance proceeds when 
  (See Executors and                 Appraisal fees 102                   Bonds:                                     death in line of duty 70
  administrators)                                                           Amortization of premium    105      Charitable contributions:
Adopted child   28 34 37, ,          Archer MSAs   76
Adoption:                             Contributions   48                    Issued at discount  60               Gifts to reduce public debt 17
  ATIN   13                          Armed Forces:                          Original issue discount  60         Charitable distributions, 
  Child tax credit 110                Combat zone:                          Sale of  60                          qualified  86
  Credits:                                 Extension to file return 12      Savings  57                         Check-writing fees 104
     Married filing separately 23          Signing return for spouse  23    Tax-exempt    60                    Checks:
  Employer assistance     49          Dependency allotments      35       Bonuses   39 47 77, ,                  Constructive receipt of   13
  Taxpayer identification             Disability pay 52                   Bookkeeping (See Recordkeeping        Child and dependent care credit:
     number   13 37,                  Disability pensions  53               requirements)                        Married filing separately  23
Age:                                  GI Bill benefits 36                 Breach of contract:                   Child born alive 29
  Children's investments              Military quarters allotments  35      Damages as income      75           Child care:
     (See Children, subheading:       Real estate taxes when receiving    Bribes  74 103,                        Babysitting  47
     Investment income of child            housing allowance  99          Brokers:                               Care providers  47
     under age 18)                    Rehabilitative program                IRAs with 79                         Expenses   36
  Gross income and filing                  payments  52                         Commissions     79 80,          Child custody  29
     requirements (Table 1-1)     6   Retiree's pay withholding  38       Burial:                               Child support  75
  IRAs:                               Retirees' pay:                        Expenses  103                       Child tax credit 8 27 109 111, , -
     Distribution prior to age             Taxable income  52             Business expenses:                     Claiming the credit  111
         59 1/2 88                    Wages     52                          Job search expenses     76           Limit on credit 111

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Child tax credit (Cont.)
 Limits  23                           Signing return for spouse    23      Earned income (See Earned            Married, filing joint return 28 30, 
 Married filing separately 23        Commissions   39                         income credit)                    Qualifying child  28
Child, qualifying 28                  Advance    47                        Lifetime learning (See Lifetime      Qualifying relative 33
Children 49                           IRAs with brokers   79 80,              learning credit)                  Social security number     13
(See also Adoption)                   Sharing of (kickbacks)  76         Custodial fees 103                        Adoption taxpayer 
 Additional child tax credit 111      Unearned, deduction for            Custody of child 29                            identification number 13, 
 Adoption (See Adopted child)          repayment of    47                                                               37
 Babysitters   47                    Common law marriage      22         D                                         Alien dependents   37
                                                                                                                Standard deduction for     94
 Birth of child:                     Community property     7 58,        Damages from lawsuits     75          Dependents not allowed to claim 
  Head of household, qualifying       IRAs   79                          Dating your return   14                dependents     27
         person to file as 25         Married filing separately  24      Daycare centers  47                   Depletion allowance    72
  Social security number to be       Commuting expenses       104        (See also Child care)                 Deposits:
         obtained  37                 Employer-provided commuter         De minimis benefits   49               Loss on  103
 Care providers    47                  vehicle     50                    Deadlines (See Due dates)             Depreciation:
 Credit for 8                        (See also Wages and salaries)
 (See also Child care)               Compensation   47                   Death (See Decedents)                  Home computer     103
 (See also Child tax credit)          Defined for IRA purposes     79    Death benefits:                       Differential wage payments    48
 Custody of    29                     Defined for Roth IRA                 Accelerated  70                     Differential wages:
 Death of child:                       purposes     89                     Life insurance proceeds (See Life    Wages for reservists:
  Head of household, qualifying       Employee     47                         insurance)
         person to file as 25         Miscellaneous compensation      47   Public safety officers who died or      Military reserves  52
                                                                              were killed in line of duty, tax Direct deposit of refunds   15
 Dividends of (See this heading:      Nonemployee     75                      exclusion  70                    Directors' fees 75
  Investment income of child          Unemployment     73                Death of child 29                     Disabilities, persons with:
  under age 18)
 Earnings of   8                     Computation of tax 14               Death of dependent    34               Accrued leave payment      53
 Filing requirements   8              Equal amounts    14                Debt instruments (See Bonds or         Armed Forces     52
  As dependents (Table 1-2)       7   Negative amounts    14               Notes)                               Blind (See Blind persons)
 Gifts to   55                        Rounding off dollars    14         Debts  19 71,                          Cafeteria plans  53
 Investment income of child under    Confidential information:           (See also Bad debts)                   Credit for (See Elderly or 
  age 18:                             Privacy Act and paperwork            Canceled (See Cancellation of           disabled, credit for)
  Dependent filing requirements        reduction information      3           debt)                             Insurance costs   53
         (Table 1-2)  7              Constructive receipt of               Nonrecourse   68                     Military and government 
  Interest and dividends     8        income    13 61,                     Paid by another   13                    pensions    53
  Parents' election to report on     Contributions 17 74,                  Public, gifts to reduce 17           Public assistance benefits   73
         Form 1040 or 1040-SR     8  (See also Campaign contributions)     Recourse    68                       Reporting of disability pension 
 Kidnapped     29 33,                (See also Charitable contributions)   Refund offset against   10 15,          income    53
 Signing return, parent for child 15  Nontaxable combat pay      79      Deceased taxpayers                     Retirement, pensions, and 
 Standard deduction for    93 94,     Political 104                        (See Decedents)                         profit-sharing plans    53
 Stillborn  29                        Reservist repayments    79         Decedents  7                           Signing of return by 
 Support of (See Child support)      Convenience fees  102               (See also Executors and                   court-appointed 
 Tax credit (See Child tax credit)   Conversion (See specific retirement    administrators)                        representative   15
                                      or IRA plan)                         Deceased spouse     7                Social security and railroad 
 Transporting school children   77   Cooperative housing:                  Due dates   11                          retirement benefits, 
 Unearned income of     55            Real estate taxes, deduction         Filing requirements  7                  deductions for   66
Chronic illness:                       of    98                            Savings bonds     58                 Workers' compensation      54
 Accelerated payment of life           Taxes that are deductible           Spouse's death    22                Disabled:
  insurance proceeds                         (Table 11-1) 100              Standard deduction   93              Child  29
  (See Accelerated death             Copyrights:                         Declaration of rights of taxpayers:    Dependent      34
  benefits)                           Infringement damages     75          IRS request for information  3      Disaster Assistance Act of 1988:
 Long-term care (See Long-term        Royalties  72                      Deductions   71 93,                    Withholding    40
  care insurance contracts)
Citizen or resident test 28          Corporations  71                    (See also Recovery of amounts         Disaster relief 53 74, 
Citizens outside U.S.:               (See also S corporations)              previously deducted)               (See also Terrorist attacks)
 Earned income exclusion     3        Director fees as self-employment     Casualty losses   105                Disaster Relief and Emergency 
                                       income      75                      Changing claim after filing, need       Assistance Act:
 Employment (See Foreign             Corrections (See Errors)                 to amend   19                        Grants    74
  employment)                        Cost basis:                           Itemizing (See Itemized                 Unemployment assistance      73
 Extension of time to file 11         IRAs for nondeductible                  deductions)                       Grants or payments    74
 Filing requirements   8               contributions   83 86,              Pass-through entities   103         Disclosure statement   20
 Withholding from IRA                Cost-of-living allowances   48        Repayments    72                    Discount, bonds and notes issued 
  distributions    87                Coupon bonds   61                     Social security and railroad         at 60
Civil suits 75                       Court awards and damages                 retirement benefits  66          Distributions:
(See also Damages from lawsuits)      (See Damages from lawsuits)          Standard deduction   93 95,          Qualified charitable  86
Civil tax penalties (See Penalties)  Cousin  34                            Student loan interest deduction      Required minimum 
Clergy 8                             Credit cards:                            (See Student loans)                  distributions  84 86, 
 Housing    51                        Benefits, taxability of              Theft loss  105                      (See also Individual retirement 
  Real estate taxes when               insurance    75                   Deferred compensation:                     arrangements (IRAs))
         receiving housing            Payment of taxes  3                  Limit 50                            Dividends:
         allowance   99                                                                                         Alaska Permanent Fund 
 Life insurance proceeds when        Credit for child and dependent        Nonqualified plans   48                 (See Alaska Permanent Fund 
  chaplain died in line of            care expenses    109               Delinquent taxes:                         dividends)
  duty      70                       Credit for other dependents    109,   Real estate transactions, tax        Fees to collect  103
 Pensions   51                        111                                     allocation 99                     Stockholder debts when canceled 
 Special income rules    51           Claiming the credit 111            Delivery services   11                    as   68
Clerical help, deductibility of 102   Limit on credit 111                Dependent taxpayer test     27        Divorced parents   29 33, 
Coal and iron ore  72                 Qualifying person   111            Dependents    8 26,                   Divorced taxpayers   74
Collectibles:                        Credit for the elderly or the       (See also Child tax credit)           (See also Alimony)
 IRA investment in    87              disabled    109                      Birth of 34                          Child custody  29
Colleges and universities:           Credit or debit cards:                Born and died within year  13 37,    Estimated tax payments     45
 Education costs     77               Payment of taxes  11                 Death of 34                          Filing status  22
 (See also Qualified tuition         Credits 107 109,                      Filing requirements  8               IRAs   80 85, 
   programs)                          American opportunity    23              Earned income, unearned           Real estate taxes, allocation 
Combat zone:                          Child tax (See Child tax credit)           income, and gross income          of   99
 Extension to file return  12         Credit for other dependents   109          levels (Table 1-2)  7

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Domestic help:                         Embezzlement:                          Definition 37                         Farmers:
  Withholding    38                     Reporting embezzled funds        76   Divorced taxpayers    45               Estimated tax    41
Domestic help, can’t be claimed        Emergency medical service              Figuring amount of tax  42             Withholding   38
  as dependent      27                  personnel:                            First period, no income subject to    Farming:
Donations (See Charitable               Life insurance proceeds when           estimated tax in     42               Activity not for profit 74
  contributions)                             death in line of duty 70         Fiscal year taxpayers 42               Canceled debt, treatment of      69
Down payment assistance        75      Emotional distress damages        75   Married taxpayers   42                Federal employees:
Dual-status taxpayers      8           Employee benefits     48 49,           Name change     44                     Accrued leave payment      48
  Joint returns not available  23      (See also Fringe benefits)             Not required  41                       Cost-of-living allowances     48
  Standard deduction       93          Employee business expenses:            Overpayment applied to    15           Disability pensions    53
Due dates   10 11,                      Reimbursements       39 47,           Payment vouchers    43                      Based on years of service    53
  2020 dates (Table 1-5)      11        Returning excess     39               Payments   16 43,                           Exclusion, conditions for   53
  Extension (See Extension of time     Employee expenses:                      Figuring amount of each                    Terrorist attack 53
       to file)                         Home computer        103                   payment    42                     FECA payments       54
  Nonresident aliens' returns    11     Miscellaneous    102                   Schedule      42                     Federal Employees' 
Dues:                                  Employees   39 48 49, ,                 When to start    42                   Compensation Act (FECA) 
  Club  104                            (See also Fringe benefits)              Who must make        41               payments     54
Dwelling units:                         Awards for service   47               Penalty for underpayment     37 43, , Federal government:
  Cooperative (See Cooperative          Business expenses                      45                                    Employees (See Federal 
       housing)                              (See Employee business           Saturday, Sunday, holiday rule   42         employees)
                                             expenses)
E                                       Form W-4 to be filled out when        Separate returns  44                  Federal income tax:
                                             starting new job  39             Social security or railroad            Not deductible   101
E-file 3 6 8,  ,                        Fringe benefits  39                    retirement benefits    64                  Deductibility (Table 11-1)   100
  Extensions of time to file  11        Jury duty pay    76                   State and local income taxes,         Federal judges:
                                                                               deduction of   97                     Employer retirement plan 
  On time filing    11                  Overseas employment                   Unemployment compensation        73         coverage    80
Early withdrawal from deferred               (See Foreign employment)       Excise taxes  86                        Fees 75
  interest account:                    Employers:                           (See also Penalties)                    (See also specific types of 
  Higher education expenses,            E-file options   10                   Deductibility (Table 11-1)   100       deductions and income)
       exception from penalty    78     Educational assistance from           IRAs for failure to take minimum       Professional license    104
  IRAs:                                      (See Educational assistance)      distributions  86                    Fellowships (See Scholarships and 
       Early distributions, defined 88  Form W-4, having new employees        Roth IRAs   91                         fellowships)
       Penalties    86 88,                   fill out 39                    Exclusions from gross income:           FICA withholding    12 37 48, , 
Earned income:                          Overseas employment                   Accelerated death benefits   70       (See also Social security and 
  Defined:                                   (See Foreign employment)                                                Medicare taxes)
       For purposes of standard         Withholding rules    39               Canceled debt   69                    (See also Withholding)
         deduction     94              Employment:                            Commuting benefits for                Fiduciaries 7 79 80, , 
  Dependent filing requirements         Agency fees     75                     employees      50                    (See also Executors and 
       (Table 1-2)  7                   Taxes  48                             De minimis benefits   49               administrators)
Earned income credit       109          (See also Social security and         Disability pensions of federal        (See also Trustees)
  Filing claim   8                            Medicare taxes)                  employees and military      53        Fees for services   75
  Married filing separately   23             FICA withholding   12            Education Savings Bond                 Prohibited transactions    87
                                              (See also Withholding)           Program      76
Education:                             Employment taxes      37 38 44, ,      Educational assistance from           Figuring taxes and credits     63 107, 
  Savings bond program        59       Endowment proceeds       70             employer      49                     (See also Worksheets)
Education credits:                     Energy assistance     74               Elective deferrals, limit on          Filing requirements    6 21 23- , 
                                                                               exclusion     50                     (See also Married filing separately)
  Married filing separately   23       Energy conservation:                   Employee awards    47                  Calendar year filers    11
Education expenses:                     Measures and modifications       75   Energy conservation                    Citizens outside U.S.   8
  Employer-provided                     Subsidies     75                       subsidies     75 78,                  Dependents    7 8, 
       (See Educational assistance)                                                                                  Electronic (See E-file)
  Tuition (See Qualified tuition        Utility rebates  78                   Foreign earned income     3
       programs)                       Equitable relief (See Innocent         Frozen deposit interest   76           Extensions   11
Educational assistance:                 spouse relief)                        Group-term life insurance    50        Gross income levels 
  Employer-provided        49          Errors:                                Long-term care insurance                    (Table 1-1) 6
  Scholarships (See Scholarships        Corrected wage and tax                 contracts     53 54,                  Individual taxpayers    7
       and fellowships)                      statement   44                   Parking fees,                          Joint filing 22 23, 
  Tuition (See Qualified tuition        Discovery after filing, need to        employer-provided      50             (See also Joint returns)
       programs)                             amend return    18               Public safety officers who died or     Late filing penalties 
EIC (See Earned income credit)          Refunds    18                          were killed in line of duty,               (See Penalties)
Elderly or disabled, credit for:       Escrow:                                 death benefits    70                  Most taxpayers (Table 1-1)       6
  Married filing separately   23        Taxes placed in, when                 Sale of home   77                      Unmarried persons (See Single 
                                             deductible  99                   Scholarships   77                           taxpayers)
Elderly persons:                       Estate beneficiaries:                  Strike benefits 77                     When to file  11
  Credit for (See Elderly or            IRAs (See Individual retirement     Executors and administrators      7      Where to file    17
       disabled, credit for)                 arrangements (IRAs))           Exempt-interest dividends      56        Who must file    7 8, 
  Exemption from withholding     39     Losses of estate     75             Exemptions:                             Filing status 7 21 25, -
  Home for the aged    35               Receiving income from estate     75   From withholding   39                  Annulled marriages      22
  Long-term care (See Long-term        Estate tax:                          Expenses paid by another       75        Change to, after time of filing   19
       care insurance contracts)
  Nutrition Program for the             Deduction     101                   Extension of time to file 11             Divorced taxpayers      22
       Elderly   74                    Estates 75                             Automatic   11                         Head of household      22 24, 
  Standard deduction for age 65 or     (See also Estate beneficiaries)        Citizens outside U.S. 11                    Qualifying person to file as 24
       older     93                     Income     75                         E-file options 11                      Joint returns 22
  Tax Counseling for the Elderly    10  Tax    101 105,                       Inclusion on return 11                 Married filing separately   23
Election precinct officials:            (See also Estate tax)                                                        Surviving spouse    22
  Fees, reporting of   76              Estimated:                                                                    Unmarried persons       7 22, 
Elective deferrals:                     Credit for    44                    F                                        (See also Single taxpayers)
  Limits 50                             Payment vouchers     43             Failure to comply with tax laws         Final return for decedent:
Electronic filing (See E-file)         Estimated tax  37                      (See Penalties)                        Standard deduction      93
Electronic payment options       3      Amount to pay to avoid              Fair rental value 36                    Financial institutions   79
                                             penalty  42                    Family 8 110,                           (See also Banks)
Electronic reporting:                   Avoiding   41                       (See also Child tax credit)             Financially disabled persons       19
  Returns (See E-file)                  Change in estimated tax      43     (See also Children)                     Fines 11 20 21, , 
                                        Credit for    37 44,                                                        (See also Penalties)
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Fines (Cont.)
Deductibility    104                  Itemized deduction, change to      8275-R:                            Schedule A:
Firefighters:                               standard deduction    95     Regulation disclosure                   State and local income taxes, 
Life insurance proceeds when          Standard deduction, change               statement 21                         deduction of  101
     death in line of duty 70               to itemized deductions    95 8379:                                   State benefit funds, 
Volunteer firefighters:               1040, Schedule A:                  Injured spouse claim    15                 mandatory contributions 
     IRAs   81                        Unearned commission,               8606:                                      to  98
Fiscal year 13 42,                          deduction for repayment      IRA contributions,                      Taxes, deduction of  101
Fishermen:                                  of 47                              Nondeductible   78 83 87, ,  Schedule C:
Estimated tax    41                   1040, Schedule C:                  IRA contributions,                      Real estate or personal 
Indian fishing rights  76             Barter income     67                     Recharacterization of  86            property taxes on property 
Food benefits:                        Child care providers   47          8615  55                                   used in business, 
Nutrition program for the             Corporate director fees     75     8814  55                                   deduction of  101
     elderly  74                      Forgiveness of debts    68         8815  59                           Schedule E:
Food stamps   35                      Foster-care providers   76         8818  60                                Real estate or personal 
                                                                                                                    property taxes on rental 
Foreign employment     8 52,          Kickbacks     76                   8822:                                      property, deduction of  101
Employment abroad       52            Notary fees     76                 Change of address     18           Schedule F:
Social security and Medicare          Oil, gas, or mineral interest      8839:                                   Real estate or personal 
     taxes  52                              royalties 72                 Qualified adoption                         property taxes on property 
U.S. citizen  52                      Rental income and                        expenses  49                         used in business, 
Waiver of alien status  52                  expenses    72               8853:                                      deduction of  101
Foreign governments, employees        1040, Schedule E:                  Accelerated death                  Self-employment tax, deduction 
of   52                               Royalties   72                           benefits 70                       of 101
Foreign income:                       1040, Schedule SE   51             Archer MSAs and long-term          Form 1040-ES:
Earned income exclusion      3        1065:                                    care insurance               Estimated tax    42 44, 
Reporting of     3                    Partnership income     70                contracts 48                 Form 1099-K:
Foreign income taxes:                 1098:                              8857:                              Payment card and third-party 
Deduction of     98                   Mortgage interest                  Innocent spouse relief   23             network transactions     77
     Form 1116 to claim credit  101         statement   71               8879:                              Form 1099-MISC:
     Schedule A or Form 1040 or       1099:                              Authorization for E-file           Withheld state and local taxes    97
     1040-SR reporting       101      Taxable income report   12               provider to use              Form 1099-NEC:
Definition of  97                     1099-B:                                  self-selected PIN 10         Withheld state and local taxes    97
Foreign nationals (See Resident       Barter income     68               9465:                              Form 1099-R:
aliens)                               1099-C:                            Installment agreement              Withheld state and local taxes 
Foreign students   28                 Cancellation of debt   68                request  16                       shown on    97
Forgiveness of debt                   1099-DIV:                          Form 8919:                         Form 1099-S:
(See Cancellation of debt)            Dividend income                    Uncollected social security        Real estate transactions 
Form 11 51 63, ,                            statement   51                     and Medicare tax on               proceeds    99
                                                                               wages 47
1040 26 109,                          1099-G:                            RRB-1042S:                         Form 1116:
     Alien taxpayer identification    State tax refunds    71            Railroad retirement benefits       Foreign tax credit    101
     numbers       37                 1099-INT   55 62,                        for nonresident aliens  63   Form 8332:
     Armed Forces' retirement         1099-MISC:                         RRB-1099:                          Release of exemption to 
     pay      52                      Nonemployee                        Railroad retirement                     noncustodial parent      30
     Child care providers  47               compensation   75                  benefits 62 63,              Form W-2:
     Clergy pension   51              1099-OID   61                      SS-5:                              Employer-reported income 
     Corporate director fees   75     1099-R  59                         Social security number                  statement   44
     Disability retirement pay 53     IRA distributions    87 89,              request  13 37,              Filing with return  44
     FECA benefits   54               Life insurance policy              SSA-1042S:                         Separate form from each 
     Foster-care providers   76             surrendered for cash  70     Social security benefits for            employer    44
     Kickbacks   76                   Retirement plan                          nonresident aliens 63        Withheld state and local taxes    97
     Notary fees   76                       distributions 14             SSA-1099:                          Form W-2c:
     Oil, gas, or mineral interest    1120S:                             Social security benefits  62       Corrected wage and tax 
     royalties     72                 S corporation income    71         W-2:                                    statement   44
     Rental income and                2555 111                           Election precinct officials'       Form W-2G:
     expenses        72               2848:                                    fees 76                      Gambling winnings withholding 
     Wages and salary                 Power of attorney and              Employer retirement plan                statement   40 44, 
     reporting     47                       declaration of                     participation indicated 80   Withheld state and local taxes 
     Workers' compensation     54           representative 15 23,        Employer-reported income                shown on    97
1040 or 1040-SR:                      3115 58                                  statement 12 14 47 48, , , , Form W-4:
     Address   17                     3800:                                    51                           Employee withholding allowance 
     Attachments to   14              General business credit     20     Fringe benefits   48 49,                certificate 38 39 41, , 
     IRAs   87 89,                    4506 17                            W-2G:                              Form W-4S:
     Presidential Election            4506-T:                            Gambling winnings                  Sick pay withholding request    40
     Campaign Fund         14         Tax return transcript                    withholding statement   76   Form W-4V   40
     Railroad retirement benefits,          request 17                   W-4V:                              Unemployment compensation, 
     reporting on      64             4868 11 37,                        Voluntary withholding                   voluntary withholding 
     Social security benefits,        Automatic extension of time to           request  73                       request 40
     reporting on      64                   file 11 37,                  W-7:                               Form(s) 1099 44
     Use of   22 23,                  Filing electronic form  11         Individual taxpayer                Foster care:
1040 or 1040-SR, Schedule A:          Filing paper form    11                  identification number        Care providers' payments      76
     Charitable contributions  17     5329:                                    request  37                  Child tax credit 110
1040 or 1040-SR,                      Required minimum                   W-7A:                              Difficulty-of-care payments     76
     Schedule SE     8                      distributions, failure to    Adoption taxpayer                  Emergency foster care, 
1040-NR:                                    take 89                            identification number             maintaining space in home 
     Nonresident alien return  11     56:                                      request  14 37,                   for 76
1040-X:                               Notice Concerning Fiduciary        Form 1040:                         Foster care payments and 
     Amended individual return     19       Relationship  15             Estimated tax payments  44         expenses     30 35, 
     Annulled marriages    22         6251 108                           Gambling winnings 40               Foster child 28 30 34 35, , , 
     Change of filing status 24       8275:                              Overpayment offset against next    Foster Grandparent Program      52
     Completing    19                 Disclosure statement    20         year's tax  43                     Found property   76
                                                                         Form 1040 or 1040-SR:              Fraud:
     Filing 19                                                           Foreign income taxes, deduction    Penalties    20 39, 
                                                                         of    101
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Fraud (Cont.)
  Reporting anonymously to IRS    3                                       Income taxes:                           Effect on deduction if covered 
Fringe benefits:                     H                                     Federal (See Federal income tax)           by employer retirement 
  Accident and health                                                      Foreign (See Foreign income                plan (Table 9-1)    81
       insurance 48                  HAMP:                                    taxes)                              Effect on deduction if not 
  Accounting period    48              Home affordable modification:       State or local (See State or local         covered by employer 
  Adoption, employer                       Pay-for-performance     74         income taxes)                           retirement plan 
       assistance  49                Handicapped persons                  Income-producing expenses      102          (Table 9-2)  81
  Archer MSA contributions   48        (See Disabilities, persons with)   Indians:                                Worksheet 9-1    83
  De minimis benefits   49           Head of household      22 24,         Fishing rights  76                   Nondeductible contributions   83
  Education assistance  49           Health:                               Taxes collected by tribal              Early withdrawal    88
  Form W-2   48                        Flexible spending                      governments, deduction of     97    Tax on earnings on      83
  Group-term life insurance                arrangement    48              Individual retirement                 Ordinary income, distributions 
       premiums  49                    Health insurance    48              arrangements (IRAs)       78 84, ,     as  86
  Holiday gifts  49                     (See also Accident insurance)      89                                   Penalties  87
  Retirement planning services   50    Reimbursement arrangement       49 (See also Rollovers)                    Early distributions (See Early 
  Taxable income     48                Savings account    49              (See also Roth IRAs)                        withdrawal from deferred 
  Transportation   50                Health coverage tax credit    8       Administrative fees    79 80 103, ,        interest account)
  Withholding   39                   Health insurance premiums     36      Age 59 1/2 for distribution 88         Excess contributions    87
Frozen deposits:                     Health Spa 104                           Exception to rule   88              Form 8606 not filed for 
  Interest on 76                     Help (See Tax help)                   Age 72:                                    nondeductible 
  IRA rollover period extension 84   High income taxpayers:                   Distributions required at  86,          contributions   78 83, 
Funeral expenses     36                Estimated tax     41                        88                             Overstatement of 
Funerals:                            Hobbies  103                          Compensation, defined     79               nondeductible 
                                                                                                                      contributions   83
  Clergy, payment for   51             Activity not for profit 74          Contribution limits  79                Prohibited transactions    87
  Expenses   103                       Losses   76                            Age 50 or older,    79              Required distributions, failure 
                                     Holiday gifts  49                        Under age 50,     79                    to take  86 88, 
                                     Holiday, deadline falling on  42      Contributions   23 24,               Prohibited transactions   87
G                                    Home:                                    Designating year for which        Recharacterization of 
                                                                                   contribution is made  80       contribution   85
Gains and losses    23                 Aged, home for     35                  Excess    87                      Reporting of:
(See also Losses)                      Cost of keeping up    24               Filing before contribution is       Distributions  87
  Claim for refund for loss 20             Worksheet     25                        made   80                      Recharacterization of 
  Gambling   105                       Security system    104                 Nondeductible     83                    contributions   86
  Hobby losses     76                Homeowners' associations:                Not required annually    80       Required distributions  84 86, 
  Passive activity  24                 Charges  101                           Roth IRA contribution for same      Excess accumulations      88
Gambling winnings and                      Deductibility (Table 11-1) 100          year 90                      Retirement savings contribution 
  losses    76 105,                  Hope credit:                             Time of   80                        credit   23
  Withholding   40 44,                 Married filing separately   23         Withdrawal before filing due      Self-employed persons     79
Garbage pickup:                      Host  70                                      date  86                     Taxability 88
  Deductibility (Table 11-1) 100     Household furnishings:                Cost basis 83 86,                      Distributions  86
Garnishment and attachment      13     Antiques (See Collectibles)         Deduction for   80                   Time of taxation 79
Gas royalties 72                     Household members         22             Participant covered by            Transfers permitted   84
Gems:                                (See also Head of household)                  employer retirement plan       To Roth IRAs   84 85, 
  IRA prohibited transactions in 87  Household workers (See Domestic               (Table 9-1)  81
General due dates, estimated           help)                                  Participant not covered by        Trustee administrative fees   103
  tax  42                            Household workers, can’t claim as             employer retirement plan     Trustee-to-trustee transfers  84
GI Bill benefits 36                    dependent    27                             (Table 9-2)  81                IRA to Roth IRA     91
Gift taxes:                          Housing  24                              Phaseout     81                   Types of   79
  Not deductible   101               (See also Home)                       Definition of 79                     Withdrawals    86 87, 
Gifts:                                 Clergy  51                          Distributions:                         Early (See Early withdrawal 
  Holiday gifts  49                    Cooperative (See Cooperative           At age 59 1/2   88                      from deferred interest 
  Not taxed  76                            housing)                           Required minimum                        account)
  To reduce the public debt  17                                                    distributions (See this        Required (See this heading: 
Gold and silver:                     I                                             heading: Required                  Required distributions)
                                                                                   distributions)               Withholding   14 40 87, , 
  IRA investments in   87            Icons, use of  3 4,                   Divorced taxpayers     85           Individual taxpayer identification 
Government employees:                Identity theft 2 21,                  Early distributions (See Early       number (ITIN)    14 37, 
  Federal (See Federal employees)    Illegal activities:                      withdrawal from deferred         Individual taxpayers (See Single 
Grants, disaster relief 74             Reporting of    76                     interest account)                 taxpayers)
Gratuities (See Tip income)          Income  47 67 74, ,                   Employer retirement plan            Information returns 12 14 47 48, , , , 
Gross income:                        (See also Alimony)                       participants  80 81,              51
  Age, higher filing threshold after (See also Wages and salaries)         Establishing account   79           (See also Form 1099)
       65 7                            Bartering 67                           Time of   79                     (See also Form W-2)
  Defined   7                          Canceled debts     68                  Where to open account      79     Partnerships to provide   70
       Filing requirements             Constructive receipt of  13 61,     Excess contributions   87           Inheritance 75
        (Table 1-1)   6                Gross   34                          Figuring modified AGI (Worksheet    (See also Estate beneficiaries)
  Dependent filing requirements        Illegal activities 77                  9-1)  83                          IRAs (See Individual retirement 
       (Table 1-2) 7                   Interest 54                         Forms to use:                          arrangements (IRAs))
Gross income test    34                Jury duty pay   76                     Form 1099-R for reporting         Not taxed  76
                                                                                   distributions  87           Inheritance tax:
Group-term life insurance:             Life insurance proceeds     70         Form 8606 for nondeductible       Deductibility of 101
  Accidental death benefits  49        Nonemployee compensation        75          contributions  78            Deduction  101
  Definition 49                        Paid to agent   13                  Inherited IRAs  76 83 84, ,         Injured spouse  15
  Exclusion from income    50          Paid to third party  13                Required distributions   86       Claim for refund 15
       Limitation on 49                Partnership  70                     Interest on, treatment of 78        Innocent spouse relief:
  Permanent benefits    49             Prepaid  13                         Kay Bailey Hutchison Spousal         Form 8857  23
  Taxable cost, calculation of 49      Recovery   71                          IRAs  79 81-                      Joint returns  23
Guam:                                  Royalties 72                        Married couples (See this           Insolvency:
  Income from    8                     S corporation   71                     heading: Kay Bailey Hutchison     Canceled debt not deemed to be 
                                       Tax exempt   35                        Spousal IRAs)                       income   69
                                       Underreported      19               Modified adjusted gross income      Installment agreements     16
                                                                              (MAGI):
                                                                              Computation of     81

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Insurance:                              Dependents on    34                  Local law violated 34                 Medical insurance premiums     36
  Accident (See Accident                Divorced taxpayers   22              Lockout benefits 77                   Medical savings accounts 
      insurance)                        Estimated tax  42                    Lodging 36                             (MSAs)    48 76, 
  Life  40 49,                          Extension for citizens outside       Long-term care insurance              (See also Archer MSAs)
   (See also Group-term life                U.S.  12                           contracts   53                       Medicare Advantage MSA       76
       insurance)                       Filing status 22                       Chronically ill individual 54 70,   Medicare   48 52, 
   (See also Life insurance)            Fraud penalty  21                      Exclusion, limit of 54              (See also Social security and 
  Reimbursements:                       Guardian of spouse, signing            Qualified services defined     54    Medicare taxes)
      From casualty insurance   74          as 23                            Losses 20 24,                          Benefits  74
Insurance companies:                    Injured spouse   15                  (See also Gains and losses)            Medicare Advantage MSA 
  State delinquency proceedings,        Innocent spouse    23                  Capital 23                              (See Medical savings 
                                                                                                                       accounts (MSAs))
      IRA distributions not made        Nonresident or dual-status alien       Casualty  102 105,                  Medicare taxes, not support   36
      due to  88                            spouse  23                         Gambling (See Gambling              Member of household or 
Insurance premiums:                     Responsibility for 22                    winnings and losses)               relationship test    34
  Life  36 104,                         Separate return after joint 24         Theft 102 105,                      Mentally incompetent persons      53
  Medical  36                           Signing   15 23,                     Lost property  104                    (See also Disabilities, persons with)
  Paid in advance 56                    Social security and railroad         Lotteries and raffles 76               Signing of return by 
Insurance proceeds:                         retirement benefits 67           (See also Gambling winnings and           court-appointed 
  Dividends, interest on  56            State and local income taxes,          losses)                                 representative    15
  Installment payments    60                deduction of 98                                                        Mexico:
  Life  60                            Judges, federal:                       M                                      Resident of   28 34, 
Interest:                               Employer retirement plan                                                   Military (See Armed forces)
  Fees to collect 103                       coverage  80                     MAGI (See Modified adjusted gross 
  Frozen deposits 56                  Jury duty pay   76                       income (MAGI))                      Mineral royalties 72
  Usurious  56                                                               Mailing returns (See Tax returns)     Ministers (See Clergy)
                                                                             Married dependents, filing joint      Miscellaneous deductions     101
Interest income   54                  K                                        return  28 30,                      Missing children:
  Form 1099-INT   12                                                         Married filing separately    23        Photographs of, included in IRS 
  Frozen deposits, from   76          Kickbacks   76
  Recovery of income, on    71        Kiddie tax (See Children,                Community property states       24      publications  3
                                        subheading: Unearned income of)        Credits, treatment of    23         Mistakes (See Errors)
  Savings bonds   76                  Kidnapped children:                      Deductions:                         Modified adjusted gross income 
   (See also U.S. savings bonds)                                                                                    (MAGI):
  Tax refunds, from  18                 Qualifying child 29                      Changing method from or to 
Interest payments   71                  Qualifying relative 33                       itemized deductions       95   IRAs, computation for:
(See also Mortgages)                                                             Treatment of   23                     Effect on deduction if covered 
  Canceled debt including    68       L                                        Earned income credit     23                   by employer retirement 
                                                                                                                             plan (Table 9-1) 81 83, 
                                                                               How to file 23                          Effect on deduction if not 
  Student loans deduction    23       Labor unions  40                         Itemized deductions      23 95,               covered by employer 
Interference with business              Dues and fees    77                      One spouse has itemized so                  retirement plan 
  operations:
  Damages as income       75            Sick pay withholding under union             other must as well    93                (Table 9-2) 81
                                            agreements   40                    Joint state and local income taxes      Worksheet 9-1     83
Internal Revenue Service (IRS):         Strike and lockout benefits  77          filed, but separate federal        Roth IRAs, computation for   89
  Fraud or misconduct of employee,      Unemployment compensation                returns   97                          Phaseout (Table 9-3)    89
      reporting anonymously    3            payments from    73                Rollovers 23                            Worksheet 9-2     89
International employment              Late filing 3                            Social security and railroad        Money market certificates    56
  (See Foreign employment)                                                       retirement benefits    64
International organizations,            Penalties 11 20,                                                           Mortgage:
  employees of    52                  Late payment:                            State and local income taxes    97
Internet:                               Penalties on tax payments    20        Tenants by the entirety, allocation  Relief   68
  Electronic filing over (See E-file) Law enforcement officers:                  of real estate taxes   99         Mortgages:
Investments:                            Life insurance proceeds when         Married taxpayers  22 24-              Assistance payments      74
  Fees    103                               death in line of duty 70         (See also Joint returns)               Discounted mortgage loan     68
  Seminars   104                      Legal expenses   103 104,              (See also Married filing separately)   Interest:
IRAs (See Individual retirement       Liability insurance:                     Age 65 or older spouse:                 Refund of     71
  arrangements (IRAs))                  Reimbursements from     74               Standard deduction       94       MSAs (See Medical savings 
Itemized deductions:                  License fees:                            Blind spouse:                        accounts (MSAs))
  Changing from standard to             Deductibility of 101                     Standard deduction       94       Multiple support agreement    36
      itemized deduction (or vice       Nondeductibility of  103               Deceased spouse     6 7 22,  ,      Municipal bonds   60
                                                                               (See also Surviving spouse)         Mutual funds:
      versa)  95                      Life insurance  49 70,                   Dual-status alien spouse    23       Nonpublicly offered   103
  Choosing to itemize  94             (See also Accelerated death 
  Form 1040 to be used    71            benefits)                              Estimated tax  42
  Married filing separately 23 95,    (See also Group-term life insurance)     Filing status 6 7 22,  ,            N
      One spouse has itemized    93     Form 1099-R for surrender of           IRAs  79 80, 
                                            policy for cash 70                   Spouse covered by employer        Name change    13 44, 
  Recovery   71                         Premiums    104                              plan   80 81,                 National Housing Act:
  Standard deduction to be              Proceeds    60                         Living apart  22                     Mortgage assistance      74
      compared with  94                                                        Nonresident alien spouse    14 23,  National of the United States  28
  State tax, for 95                         As income    70
ITIN (See Individual taxpayer           Public safety officers who died or     Roth IRAs   89                      Native Americans (See Indians)
  identification number (ITIN))             were killed in line of duty, tax   Signatures when spouse unable       Negligence penalties   20
                                            exclusion 70                         to sign   15                      Net operating losses:
ITINs (See Individual taxpayer          Surrender of policy for cash 70        Social security or railroad          Refund of carryback    20
                                        Withholding   40
  identification number (ITIN))                                                  retirement benefits,              New Jersey Nonoccupational 
                                      Life insurance premiums     36             taxability  63                     Disability Benefit Fund     98
J                                     Lifetime learning credit:              Mass transit passes,                  New Jersey Unemployment 
Job search:                             Married filing separately 23           employer-provided        50          Compensation Fund         98
  Deduction of expenses for           Limits:                                Maximum age. The age restriction      New York Nonoccupational 
                                                                               for contributions to a               Disability Benefit Fund     98
      Interviews  76                    Miscellaneous deductions     102       traditional IRA has been            Nobel Prize 77
Joint accounts   55                   Loans 19                                 eliminated.:                        Nominees   55 61, 
Joint return test 28 30,              (See also Debts)                         Traditional IRA contributions   78  Nonemployee compensation       75
Joint returns:                        Lobbying expenses     104              Medical and dental expenses:          Nonresident aliens    8
  Accounting period  22               Local assessments:                       Reimbursements, treatment            Due dates    11
  After separate return   24            Deductibility of 100                     of  54
  Deceased spouse    22               Local income taxes, itemized           Medical insurance (See Accident        Estimated tax    41
                                        deductions    95                       insurance)
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Nonresident aliens (Cont.)
  Individual taxpayer identification     Disaster relief 74                 Personal injury suits:                Lump-sum election    64
     number (ITIN)   14                 Payroll deductions    101             Damages from     75                 Married filing separately 23 64, 
  Spouse   14                           Payroll taxes 48                    Personal property:                    Repayment of benefits   64
     Joint returns not available     23 (See also Social security and         Rental income from    72            Reporting of  64
     Separated    24                     Medicare taxes)                    Personal property taxes:              Taxability of 63 64, 
  Standard deduction   93               Peace Corps allowances      52        Deduction of   101                  Withholding   40
  Taxpayer identification               Penalties 43 45,                       Schedule A, C, E, or F (Form       Not tax deductible      101
     number   37                         Accuracy-related     20                     1040)   101                  Withholding for  64
  Waiver of alien status  52             Backup withholding      41           Taxes (See Personal property       Railroad Unemployment 
Northern Mariana Islands:                Civil penalties  20                   taxes)                             Insurance Act    54
  Income from   8                        Criminal  21                       Personal representatives             Real estate:
Not-for-profit activities 74             Deductibility 104                    (See Fiduciaries)                   Canceled business debt, 
Notary fees 76                           Defenses    20                     Persons with disabilities             treatment of     69
Notes:                                   Estimated tax (See this heading:     (See Disabilities, persons with)    Division of real estate taxes 98
  Discounted  48 60,                     Underpayment of estimated          Place for filing 17                   Form 1099-S to report sale 
  Received for services   48             tax)                               Political campaign expenses    104    proceeds      99
Nursing homes:                           Failure to include social security Political contributions               Itemized charges for services not 
  Insurance for care in (See Long-       number       14 21,                  (See Campaign contributions)        deductible      100
     term care insurance contracts)      Failure to pay tax   20            Power of attorney   15 23,            Real estate-related items not 
Nutrition Program for the                Form 8606 not filed for            Premature distributions (See Early    deductible      100
  Elderly  74                            nondeductible IRA                    withdrawal from deferred interest   Transfer taxes  101
                                         contributions      78 83,            account)                           Real estate taxes:
                                         Fraud 20 21,                       Prepaid:                              Assessments (See Local 
O                                        Frivolous tax submission   21        Insurance  56                       assessments)
OASDI   74                               Interest on  16                    Preparers of tax returns   15         Cooperative housing    98
Occupational taxes:                      IRAs 87                            Presidential Election Campaign        deduction of  98
  Deduction of:                          Early distributions     88           Fund   14                           Deduction of:
     Taxes that are deductible           Excess contributions       87      Price reduced after purchase   69     List of deductible taxes 
         (Table 11-1)  100               Form 8606 not filed for            Principal residence (See Home)                (Table 11-1) 100
Office rent, deductibility of 102              nondeductible                Privacy Act and paperwork             Schedule A, C, E, or F (Form 
Offset against debts  10 15,                   contributions     78 83,       reduction information    3                  1040) 101
Oil, gas, and minerals:                  Overstatement of                   Private delivery services  11         Refund, treatment of  99
  Future production sold  73                   nondeductible                Prizes and awards   47 77,           Rebates (See Refunds)
                                               contributions     83         (See also Bonuses)                   Recharacterization:
  Royalties from  72                     Required distributions, failure      Exclusion from income    47         IRA contributions   85
     Schedule C or C-EZ     72                 to take   86                   Pulitzer, Nobel, and similar       Recordkeeping:
  Sale of property interest 73           Late filing 11 20,                    prizes    77                       Gambling   105
Options  51                              Exception       20                   Scholarship prizes    77            Savings bonds used for 
Ordinary gain and loss (See Gains        Late payment    20                 Professional license fees  104        education       60
  and losses)                            Negligence   20                    Professional Reputation    104       Recordkeeping requirements     17
Original issue discount (OID)   60       Reportable transaction             Profit-sharing plans:                 Basic records   17
Other taxes 108                          understatements         20           Withholding    14 40,               Copies of returns   17
Outplacement services     48             Roth IRAs:                         Property:                             Electronic records   17
Overpayment of tax   15                  Conversion contributions             Found   76                          Gambling   76
Overseas work (See Foreign                     period    92
(See also Tax refunds)                         withdrawn in 5-year            Stolen  77                          Period of retention  18
  employment)                            Excess contributions       91      Public assistance benefits  73        Proof of payments    18
Overtime pay  39                         Substantial understatement of      Public debt:                          Why keep records     17
                                         income tax       20                  Gifts to reduce 17                 Recovery of amounts previously 
P                                        Tax evasion   21                   Public transportation passes,         deducted    71
                                         Underpayment of estimated            employer-provided     50            Itemized deductions   71
Paper vs. electronic return (See E-      tax      37 43 45, ,               Publications (See Tax help)           Mortgage interest refund  71
  file)                                  Willful failure to file 21         Puerto Rico:                          Over multiple years  71
Paperwork Reduction Act of               Withholding   39 41,                 Residents of   8                    Tax refunds   71
Parental responsibility                 Pennsylvania Unemployment 
  1980   3                                                                  Pulitzer Prize 77                    Refunds  108
  (See Children)                         Compensation Fund          98      Punitive damages:                     State tax  71
Parents who never married     30        Pensions  38 62,                      As income    75                     Taxes (See Tax refunds)
                                        (See also Railroad retirement                                            Rehabilitative program 
Parents, divorced or                     benefits)                          Q                                     payments    52
  separated   29                         Clergy   51                                                             Reimbursement    71
Parking fees:                            Contributions:                     Qualified opportunity fund  77       (See also Recovery of amounts 
  Employer-provided fringe benefit:      Retirement savings                 Qualified plans  84                   previously deducted)
     Exclusion from income    50               contribution credit      23  (See also Rollovers)                  Employee business expenses      47
Partners and partnerships     103        Taxation of      50                Qualified tuition programs  77       Relationship test 28 34, 
  Income   70                            Decedent's unrecovered             Qualifying child 28                  Relative, qualifying 33
Pass-through entities  103               investment in        14            Qualifying relative 33               Relief fund contributions  105
Passive activity:                        Disability pensions     53                                              Religious organizations  8 51, 
  Losses   24                            Elective deferral limitation   50  R                                    (See also Clergy)
Patents:                                 Employer plans:                                                         Rental income and expenses:
  Infringement damages    75             Benefits from previous             Raffles 76
  Royalties 72                                 employer's plan      80      Railroad retirement                   Increase due to higher real estate 
Payment of estimated tax    43           Rollover to IRA         85 91,       benefits  62 67 77- ,               taxes      101
  By check or money order    43          Situations in which no               Deductions related to 66            Deductibility (Table 11-1)    100
  Credit an overpayment     43                 coverage     80                Employer retirement plans           Losses from rental real estate 
Payment of tax  3 10 16 19 43, , , ,     Inherited pensions      76            different from   80                activities    24
  By credit or debit card 11             Military (See Armed Forces)          Equivalent tier 1 (social security  Personal property rental  72
  Delivery services  11                  Unrecovered investment in      106    equivalent benefit                Repayments  72
                                                                               (SSEB))       62 77,               Amount previously included in 
  Estimated tax   16                     Withholding   14 40,                 Estimated tax  64                   income      106
  Installment agreements                Per capita taxes:                     Form RRB-1042S for nonresident      Railroad retirement benefits  64
     (See Installment agreements)        Deductibility of 101                  aliens    63                       Social security benefits 64 72, 
  Late payment penalties    20          Personal exemption       37           Form RRB-1099     62                Unemployment compensation       73
Payments   108 109,                                                           Joint returns  67
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Reporting:                             Treatment of  84                  Scholarships and fellowships:        Social security and Medicare 
 Rollovers  85                         Waiting period between   84        Earned income including     94       taxes:
Required minimum                     Roth IRAs 89 92-                     Exclusion from gross income    77    Support, not included in   36
 distributions   84 86,              (See also Rollovers)                 Teaching or research                Social security benefits    35 62 67, , 
(See also Individual retirement        Age:                                    fellowships 77                  Deductions related to  66
 arrangements (IRAs))                   Distributions after age          Section 457 deferred                  Employer retirement plans 
Rescue squad members:                          59 1/2 92                  compensation plans:                       different from 80
 Life insurance proceeds when           No limit for contributions   89   Rollovers:                           Estimated tax    64
 death in line of duty    70            No required distribution               To IRAs 85 91,                  Foreign employer     52
Reservists:                                    age  92                   Securities:                           Form SSA-1042S for nonresident 
 IRAs   80                             Compensation, defined    89        Claim for refund  20                      aliens 63
 Repayments    79                      Contribution limits  90            Options    51                        Form SSA-1099       62
Residency:                              Age 50 or older,    90            Stock appreciation rights   48       IRAs for recipients of benefits    81
 Home outside U.S. (See Citizens        Under age 50,      90            Self-employed persons    101          Joint returns  67
 outside U.S.)                         Contributions  89                 (See also Self-employment tax)        Lump-sum election      64
Residency test 29                       No deduction for    89            Corporate directors as  75           Married filing separately  23 64, 
Resident aliens:                        Roth IRA only     90              Definition  8                        Paid by employer    48
 Estimated tax   41                     Time to make      91              Foreign government or                Repayment of benefits      64 72, 
 IRA distributions, withholding         To traditional IRA for same            international organizations,    Repayments     103
 from      87                                  year 90                         U.S. citizens employed by   8   Reporting of   64
 Social security number (SSN)     13   Conversion    91                   Gross income     7                   Taxability of  63 64, 
 Spouse treated as    24               Definition of 89                   IRAs   79                            Withholding    40
Retired Senior Volunteer               Distributions:                     Ministers  8                         Withholding for   64
 Program    52                          Qualified distributions    92     Nonemployee compensation       75         Not deductible   101
Retirees:                              Effect of modified AGI on         Self-employment tax:                 Social security number (SSN)        13
 Armed Forces:                          contributions (Table 9-3)     89  Deduction of   101                   Child's  2
 Taxable income       52               Establishing account     89             List of deductible taxes             Number to be obtained at 
Retirement planning services    50     Excess contributions     91               (Table 11-1)   100                   birth   37
Retirement plans   23 38 62, ,         IRA transfer to  84 85,           Seminars:                             Correspondence with IRS, include 
(See also Railroad retirement          Modified adjusted gross income     Investment-related    104                 SSN  14
 benefits)                              (MAGI)      89                   Senior Companion Program       52     Dependents     2 13, 
(See also Roth IRAs)
 Clergy   51                            Computation (Worksheet           Separate returns (See Married filing       Exception  13
 Contributions   50                            9-2) 89                    separately)                          Failure to include penalty       14
 Credit for (See Retirement             Phaseout (Table 9-3)       89    Separated parents   29 33,            Form SS-5 to request number          13
        savings contribution credit)   Penalties:                        Separated taxpayers    22             Nonresident alien spouse         14
 Taxation of     50                     Conversion contributions          Filing status  23 24,                Resident aliens   13
 Decedent's unrecovered                        withdrawn in 5-year        IRAs   80                           Spouse  7 14 15 22 23 70, , , , , 
 investment in     14                          period 92                  Nonresident alien spouse      24    (See also Married taxpayers)
 Disability pensions  53                Excess contributions       91    SEPs (See Simplified employee        Spouse's death   94
 Elective deferral limitation  50      Recharacterizations  85            pensions (SEPs))                    SSN (See Social security number 
 Employer plans:                       Spousal contributions    89       Series EE and E savings               (SSN))
 Benefits from previous                Taxability 92                      bonds    57                         Stamp taxes:
        employer's plan  80            Withdrawals   92                  Series HH and H savings               Real estate transactions and       101
 Rollover to IRA      85 91,            Excess contributions       91     bonds    57                         Stamps (See Collectibles)
 Situations in which no                 Not taxable     92               Series I savings bonds   57          Standard deduction     93 95, 
        coverage   80                Rounding off dollars   14           Service charges   103                State:
 Inherited pensions   76             Royalties 72                        Service Corps of Retired              Obligations, interest on   60
 IRAs (See Individual retirement                                          Executives (SCORE)      52
 arrangements (IRAs))                S                                   Severance pay   48                   State or local governments:
 Military (See Armed Forces)                                              Accrued leave payment     48         Employees:
 Withholding   14 40,                S corporations   103                 Outplacement services     48              Unemployment 
Retirement savings contribution        Shareholders   71                 Short tax year:                              compensation    73
 credit:                             Safe deposit box   103               Change in annual accounting         State or local income taxes       95
 Adjusted gross income limit    23   Salaries (See Wages and salaries)         period 93                       Deduction of   97
Returns, tax (See Tax returns)       Sale of home   77                   Sick pay:                                  List of deductible taxes 
Rewards   77                           Division of real estate taxes 98   Collective bargaining                       (Table 11-1)    100
Rhode Island Temporary Disability    Sale of property:                         agreements  40                       Schedule A (Form 1040)        101
 Benefit Fund    98                    Personal items   77                FECA payments      54                Electronic returns filed with 
Rollovers 84                         Sales and exchanges:                 Income   48                               federal 9
 Definition of 84                      Bonds   60                         Railroad Unemployment                Exception to deduction     97
 Excess due to incorrect rollover    Saturday, deadline falling on   42        Insurance Act   54              Federal changes, effect on       20
 information      88                 Savings:                             Withholding    39 40,                Form W-2 to show withheld 
 From 403 plan to IRA   84             Bonds   57 62,                    Signatures  14                             taxes  97
 From employer's plan to IRA    84,    Bonds used for education    59     Agent, use of  15                    Joint state and local returns but 
                                                                                                                    federal returns filed 
 85                                    Certificate 56 61,                 Joint returns  23                         separately  97
 From IRA to IRA   84                Schedule  17 47 51 54, , ,           Mentally incompetent    15           Married filing separately  97
 From IRA to Roth IRA   91           (See also Form 1040)                 Parent for child 15                  Refunds, treatment of   97 98, 
 From Roth IRA to Roth IRA      92   (See also Form 1040 or 1040-SR)      Physically disabled   15            State or local taxes:
 From section 457 plan to IRA   84     Form 1040, A-F, R, SE (See Form   Signing your return   9               Refunds    71
 From SIMPLE IRA to Roth                1040)                            Silver (See Gold and silver)         Statute of limitations:
 IRA       92                          K-1:                              SIMPLE plans:                         Claim for refund   15
 Inherited IRAs  84                     Partnership income      70        Rollover to Roth IRA   92            Claim for refunds   19
 Married filing separately 23           S corporation income       71    Simplified employee pensions         Stillborn child 29
 Partial rollovers 84                  K-1, Form 1041   55                (SEPs):                             Stock appreciation rights   48
 Reporting:                          Schedule A (Form 1040):              IRAs as    79                       Stock bonus plans    40
 From employer's plan to               Itemized deductions  95           Single taxpayers  22                 Stock options   51
        IRA   85                     Schedules A–F, R, SE (Form 1040)     Filing requirements   7             Stockholders    20
 IRA to IRA      84                    (See Form 1040)                    Filing status  7 22,                (See also Securities)
 Taxability 84 89,                   Scholarships   30 34 36, ,           Gross income filing requirements     Debts  68
 Time limits (60-day rule) 84                                                  (Table 1-1) 6

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Stockholders' meeting               Tax help 3 10 127, ,                 Tax-exempt income   35                Travel and transportation 
  expenses    105                    Tax Counseling for the Elderly   10 Taxes 38 97 101 107, - ,               expenses  :
Stocks 20                            Volunteer counseling (Volunteer     Alternative minimum      108           Commuting expenses:
(See also Securities)                 Income Tax Assistance              Business taxes, deduction of      97     Employer-provided commuter 
Stolen funds:                         program)      10 52,               Deduction of     97                            vehicle  50
  Reporting of  77                  Tax preference items    108          Schedules to use         101           Expenses paid for others   105
Stolen property  77                 Tax rates 22                         Types of taxes deductible              Fringe benefits   50
Strike benefits 77                   Married filing separately                    (Table 11-1)    100           Job search expenses     76
Student loans:                        (Schedule Y-2)       23            Estate (See Estate tax)                Parking fees:
  Cancellation of debt   68         Tax refunds:                         Excise (See Excise taxes)                Employer-provided fringe 
  Interest deduction:                Agreement with IRS extending        Federal income taxes, not                      benefit 50
    Married filing separately 23      assessment period, claim           deductible        101                  School children, transporting 
Students:                             based on      20                   Foreign taxes    97                      of    77
  Defined  28                        Bad debts   19                      Income tax, deduction of        98     Transit pass    50
  Exemption from withholding   39    Business tax credit                 Gift taxes   101                      Treasury bills, notes, and 
                                      carrybacks      20
  Foreign  28                        Cashing check     15                How to figure                          bonds    60
  Loans (See Student loans)          Check's expiration date    15       Income taxes, deduction of      97    Treasury Inspector General :
  Scholarships (See Scholarships     Claim for  18 20,                   Indian tribal government taxes,        Telephone number to report 
    and fellowships)                  Limitations period     19          deduction of       97                    anonymously fraud or 
                                                                                                                  misconduct of IRS 
  Tuition programs, qualified         Litigation    20                   Inheritance tax    101                   employee      3
    (See Qualified tuition                                               Kiddie tax (See Children,             Treasury notes   56
    programs)                        Direct deposit 15                   subheading: Unearned                  Trust beneficiaries:
Substitute forms 12                  Erroneous refunds     18            income of)                             Losses of trust   75
Sunday, deadline falling on   42     Federal income tax refunds    71    Not deductible     101                 Receiving income from trust    75, 
Supplemental wages     39            Financially disabled    19          Personal property taxes:                 76
Support test:                        Foreign tax paid or accrued   20    Deduction of       101                Trustees:
  Qualifying child 30                General rules  10                   Real estate taxes (See Real            Administrative fees    103
  Qualifying relative  35            Inquiries  10                       estate taxes)                          IRA    103
Surviving spouse:                    Interest on 18 20 56, ,             Taxes, not support  36                 IRAs:
  Filing status 22                   Late filed returns  3               Taxpayer identification number           Fees    79 80, 
    With dependent child    25       Limits   19                         (TIN):
  Gross income filing requirements    Exceptions      19                 Adoption (ATIN)    13                    Transfer from trustee to 
    (Table 1–1)  6                   More or less than expected    15    Individual (ITIN)  14 37,                      trustee  84 91, 
  Life insurance proceeds paid       Net operating loss carryback   20   Social security number                Trusts  75
    to  70                           Offset:                             (See Social security number           (See also Trust beneficiaries)
  Single filing status 22             Against debts      10 15,          (SSN))                                 Grantor trusts  75
  Tax (See Estate tax)                Against next year's tax      15    Telephones   105                       Income   75
Surviving Spouse (See Surviving      Offset against next year's tax 43   Fraud or misconduct of IRS            TTY/TDD information     127
                                                                         employee, number for                  Tuition:
  spouse)                            Past-due   10 18,                   reporting anonymously           3      Qualified programs 
                                     Real estate taxes, treatment        Temporary absences       29 34,          (See Qualified tuition 
T                                     of     99                          Tenants:                                 programs)
Tables and figures:                  Reduced    20                       By the entirety    55                 Tuition programs, qualified 
  Estimated tax, who must make       State and local income tax          In common      55                      (See Qualified tuition programs)
    payments (Figure 4-A)     42      refunds    97 98,                  Tenants by the entirety:              Tuition, benefits under GI Bill 36
  Filing requirements:               State liability, effect on 20       Real estate taxes, allocation when 
    Dependents (Table 1-2)    7      Under $1    15                      filing separately        99           U
    Gross income levels              Withholding    8                    Terminal illness:                     U.S. citizen or resident 28
        (Table 1-1)    6             Worthless securities    20          Accelerated payment of life           U.S. national 28
  Head of household, qualifying     Tax returns 11 14 22, ,              insurance proceeds                    U.S. obligations, interest 56 57, 
    person (Table 2-1)    24        (See also Due dates)                 (See Accelerated death 
  Individual retirement             (See also Joint Returns)             benefits)                             U.S. savings bonds:
    arrangements (IRAs):            (See also Signatures)                Viatical settlements     70            Education, used for    23
    Figuring modified AGI            Aliens   8                          Terrorist attacks:                     Interest on  76
        (Worksheet 9-1)   83         Amended     18 19 95, ,             Disability pensions for federal       U.S. territories:
    Modified AGI, effect on          (See also Form 1040-X)              employees          53                  Deduction of income tax paid 
        deduction if covered by      Attachments to returns     14       Theft losses 102 105,                    to    98
        retirement plan at work      Child   15                          Third parties:                         Income from     8
        (Table 9 -1)   81            Copies of   17                      Designee for IRS to discuss return    U.S. Treasury bills, notes, and 
    Modified AGI, effect on          Dating of  14                       with      14                           bonds    60
        deduction if not covered by  Filing of 6                         Income from taxpayer's property       U.S. Virgin Islands:
        retirement plan at work      (See also Filing requirements)      paid to      13                        Income from     8
        (Table 9-2)    81            Forms to use   8                    Tiebreaker rules   32                 Underpayment penalties     37 43, , 
    Roth IRAs, effect of modified    Free preparation help   10          Tip income:                            45
        AGI on contributions                                                                                    IRS computation    45
        (Table 9-3)    89            How to file 12                      Allocated tips   39
    Roth IRAs, modified AGI          Mailing of  17                      Withholding     39                    Unearned income:
        (Worksheet 9-2)   89         Paid preparer  15                   Underwithholding         39            Children  55
  Roth IRA and modified adjusted     Payment with   16                   Total support  35                     Unearned income of child 
    gross income (MAGI)              Private delivery services  11       Tour guides:                           (See Children, subheading: 
                                                                                                                Unearned income of)
    phaseout (Table 9-3)    89       Steps to prepare (Table 1-6)  12    Free tour for organizing tour   76    Unemployment compensation       73
  Standard deduction tables   96     Third party designee    14          Trade Act of 1974:                     Credit card insurance paying   75
  Tax returns:                       Who must file  7 8,                 Trade readjustment allowances          Mandatory contributions to state 
    Due dates (Table 1-5)   11      Tax Returns:                         under        73                          funds, deduction of    98
    Steps to prepare                 Transcript of  17                   Traditional IRAs (See Individual       Private fund, from  73
        (Table 1-6)    12           Tax table 112 123-                   retirement arrangements (IRAs))
  Taxes that are deductible         Tax year 11 13-                      Transfer taxes:                        Repayment of benefits    73
    (Table 11-1)   100              (See also Accounting periods)        Real estate transactions and      101  Reporting on Form 1040    73
Tax computation worksheet     124   Tax-exempt:                          Transit passes  50                     Supplemental benefits    73
Tax Counseling for the Elderly   10  Bonds and other obligations   60                                           Voluntary benefit fund 
                                                                                                                  contributions    105
Tax credits (See Credits)            Income    105                                                              Withholding     40 73, 
Tax evasion  21                      Interest  60
Tax figured by IRS 108
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Unions   40 73 77, ,                  Archer MSA contributions  48      Supplemental    39              IRA distributions 87
(See also Labor unions)               Awards and prizes    47           Volunteer work  52              New job     38
Unmarried persons (See Single         Babysitting 47                    Withholding (See Withholding)   Penalties   37 39 41, , 
  taxpayers)                          Back pay awards    47            War zone (See Combat zone)       Pensions and annuities    14 40, 
Usurious interest    56               Bonuses  47                      Washington State Supplemental    Railroad retirement benefits    40, 
Utilities:                            Child care providers 47           Workmen's Compensation          64
  Energy conservation                 Children's earnings  8            Fund   98                       Repaying withheld tax   39
  subsidies      75 78,               Clergy 51                        Welfare benefits 35 73,          Salaries and wages      37
  Rebates     78                      De minimis benefits  49          What's new  1                    Separate returns    44
                                      Elective deferrals 50            Where to file 17                 Sick pay    40
V                                     Employee achievement award   47  Winter energy payments    75     Social security benefits  40 64, 
Veterans benefits    52               Employee compensation     47     Withholding   12 37,             State and local income taxes, 
  Retroactive determination 53        Farmworkers 38                   (See also Form W-2)              deduction for     97
  Special statute of limitations. 53  Foreign employer   52             Agricultural Act of 1949        Supplemental wages      39
                                                                        payments      40                Tips (See Tip income)
Veterans' benefits:                   Form W-2 (See Form W-2)           Changing amount withheld    38  Unemployment 
  Educational assistance 77           Fringe benefits   48              For 2022     38                 compensation        40 73, 
Viatical settlements 70               Garnished   13                    Checking amount of   38         Workers' compensation     54
VISTA volunteers     52               Government cost-of-living         Claim for refund  8             Mandatory contributions to state 
Volunteer firefighters:               allowances       48               Commodity credit loans   40     funds, deduction of       98
  IRAs     81                         Household workers    38           Credit for 37 44,               Return to work  54
Volunteer work   52                   Long-term care coverage   48      Cumulative wage method     38   Worksheets:
  Tax counseling (Volunteer Income    Military retirees 38 52,          Definition 37                   Head of household status and 
  Tax Assistance program)         10, Military service  52              Determining amount to           cost of keeping up home         25
  52                                  Miscellaneous compensation   47   withhold     38                 Individual retirement 
Vouchers for payment of tax    43     Note for services  48             Disaster Assistance Act of 1988 arrangements (IRAs), 
                                      Outplacement services    48       payments      40                modified AGI computation 
W                                     Religious orders  51              Employers, rules for 39         (Worksheet 9-1)         83
                                      Restricted property  51           Exemption from    39            Roth IRA modified adjusted gross 
W-2 form (See Form W-2)               Dividends on restricted           Federal income taxes, not       income (MAGI), computation 
Wages and salaries   12 47 54, -      stock       51                    deductible      101             (Worksheet 9-2)         89
(See also Form W-2)                   Retirement plan contributions by  Form W-4:                       Social security or railroad 
                                                                                                        retirement benefits, to figure 
  Accident and health                 employer    50                    Provided by employer      39    taxability      63 64, 
  insurance      48                   Severance pay     48              Fringe benefits 39              Support test    31
  Accrued leave payment  48           Sick pay 48 54,                   Gambling winnings   40 44,      Wristwatch  105
  Adoption, employer                  Social security and Medicare      General rules  37               Write-offs (See Cancellation of 
  assistance     49                   taxes paid by employer    48      Highest rate, employer must     debt)
  Advance commissions   47            Stock appreciation rights 48      withhold at if no W-4    39
  Allowances and                      Stock options 51                  Incorrect form  44
  reimbursements        39 47, 

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Where To File
Mail your return to the address shown below that applies to you. If you want to use a private delivery service, see Private 
delivery services in chapter 1.

TIP
      Envelopes without enough postage will be returned to you by the post office. Your envelope may need 
additional postage if it contains more than five pages or is oversized (for example, it is over 1/4 inch thick). Also, include 
your complete return address.

                                                         THEN send your return to the address    OR send your return to the address 
                                                         below if you are requesting a refund or below if you ARE enclosing a 
IF you live in...                                        are NOT enclosing a payment...          payment (check or money order)...
Alabama, Georgia, North Carolina, South Carolina,        Department of the Treasury              Internal Revenue Service
Tennessee                                                Internal Revenue Service                P.O. Box 1214
                                                         Austin, TX 73301-0002                   Charlotte, NC 28201-1214
Alaska, California, Colorado, Hawaii, Idaho, Kansas,     Department of the Treasury              Internal Revenue Service
Michigan, Montana, Nebraska, Nevada, North Dakota,       Internal Revenue Service                P.O. Box 802501
Ohio, Oregon, South Dakota, Utah, Washington, Wyoming Ogden, UT 84201-0002                       Cincinnati, OH 45280-2501
Arizona, New Mexico                                      Department of the Treasury              Internal Revenue Service
                                                         Internal Revenue Service                P.O. Box 802501
                                                         Austin, TX 73301-0002                   Cincinnati, OH 45280-2501
Arkansas, Oklahoma                                       Department of the Treasury              Internal Revenue Service
                                                         Internal Revenue Service                P.O. Box 931000
                                                         Austin, TX 73301-0002                   Louisville, KY 40293-1000
Connecticut, Delaware, District of Columbia, Illinois, 
Indiana, Iowa, Kentucky, Maine, Maryland,                Department of the Treasury              Internal Revenue Service
Massachusetts, Minnesota, Missouri, New Hampshire,       Internal Revenue Service                P.O. Box 931000
New Jersey, New York, Rhode Island, Vermont, Virginia,   Kansas City, MO 64999-0002              Louisville, KY 40293-1000
West Virginia, Wisconsin
Florida, Louisiana, Mississippi, Texas                   Department of the Treasury              Internal Revenue Service
                                                         Internal Revenue Service                P.O. Box 1214
                                                         Austin, TX 73301-0002                   Charlotte, NC 28201-1214
Pennsylvania                                             Department of the Treasury              Internal Revenue Service
                                                         Internal Revenue Service                P.O. Box 802501
                                                         Kansas City, MO 64999-0002              Cincinnati, OH 45280-2501
A foreign country, U.S. territory*, or use an APO or FPO Department of the Treasury              Internal Revenue Service
address, or file Form 2555 or 4563, or are a dual-status Internal Revenue Service                P.O. Box 1303
alien                                                    Austin, TX 73301-0215                   Charlotte, NC 28201-1303
*If you live in American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands, see Pub. 570.

140                                                                                                                       Publication 17 (2023)

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