U.S. Individual Income Tax Return

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Page 1 of 15 of 2008 Instructions for Schedules A & B (Form 1040)8:49 - 14-NOV-2008
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Department of the Treasury
Internal Revenue Service

2008 Instructions for Schedules A & B
(Form 1040)
Instructions for
Schedule A,
Itemized
Deductions

Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal
income tax will be less if you take the larger of your itemized deductions or your standard
deduction.
If you itemize, you can deduct a part of your medical and dental expenses and unreimbursed employee business expenses, and amounts you paid for certain taxes, interest,
contributions, and miscellaneous expenses. You can also deduct certain casualty and theft
losses.
If you and your spouse paid expenses jointly and are filing separate returns for 2008, see
Pub. 504 to figure the portion of joint expenses that you can claim as itemized deductions.

Do not include on Schedule A items deducted elsewhere, such as on Form 1040
or Schedule C, C-EZ, E, or F.

Section references are to the Internal
Revenue Code unless otherwise noted.

What’s New
Qualified contributions. Certain cash con-

tributions you made for relief efforts in a
Midwestern disaster area are not subject to
the overall limitation on itemized deductions or the 50% adjusted gross income
limitation. See Pub. 526 for more details.
Standard mileage rates. The 2008 rate for

use of your vehicle to get medical care is 19
cents a mile (27 cents a mile after June 30,
2008). The 2008 rate for charitable use of
your vehicle to provide relief related to a
Midwestern disaster area is 36 cents a mile
(41 cents a mile after June 30, 2008).
State and local general sales taxes. The op-

tion to deduct state and local general sales
taxes instead of state and local income
taxes was extended through 2009. See the
instructions for line 5 that begin on page
A-2.
Qualified mortgage insurance premiums.

The deduction for qualified mortgage insurance premiums for mortgage insurance
contracts issued after December 31, 2006,
was extended through 2010. See the instructions for line 13 on page A-6.
Disaster area casualties and thefts. Special rules apply to casualty and theft losses
that occurred in the Kansas disaster area, a
Midwestern disaster area, or a federally declared disaster area. See the instructions for
line 20 that begin on page A-8.
Qualified conservation contributions. The

special deduction limit for qualified conservation contributions has been extended
through 2009. See Pub. 526 for more details.

Medical and Dental
Expenses
You can deduct only the part of your medical and dental expenses that exceeds 7.5%
of the amount on Form 1040, line 38.
Pub. 502 discusses the types of expenses that you can and cannot deduct. It
also explains when you can deduct capital
expenses and special care expenses for disabled persons.

If you received a distribution
from a health savings account
or a medical savings account in
2008, see Pub. 969 to figure
your deduction.

Examples of Medical and
Dental Payments You Can
Deduct
To the extent you were not reimbursed, you
can deduct what you paid for:
• Insurance premiums for medical and
dental care, including premiums for qualified long-term care contracts as defined in
Pub. 502. But see Limit on long-term care
premiums you can deduct on page A-2. Reduce the insurance premiums by any
self-employed health insurance deduction
you claimed on Form 1040, line 29. You
cannot deduct insurance premiums paid
with pretax dollars because the premiums
are not included in box 1 of your Form(s)
W-2. If you are a retired public safety officer, you cannot deduct any premiums you
paid to the extent they were paid for with a
tax-free distribution from your retirement
plan.

If, during 2008, you were an eligible trade adjustment assistance (TAA) recipient,
alternative TAA (ATAA) recipient, or Pension Benefit Guaranty Corpora-

A-1
Cat. No. 24328L

tion pension recipient, you must reduce
your insurance premiums by any amounts
used to figure the health coverage tax
credit. See the instructions for line 1 on
page A-2.

• Prescription medicines or insulin.
• Acupuncturists, chiropractors, den-

tists, eye doctors, medical doctors, occupational therapists, osteopathic doctors,
physical therapists, podiatrists, psychiatrists, psychoanalysts (medical care only),
and psychologists.
• Medical examinations, X-ray and laboratory services, insulin treatment, and
whirlpool baths your doctor ordered.
• Diagnostic tests, such as a full-body
scan, pregnancy test, or blood sugar test kit.
• Nursing help (including your share of
the employment taxes paid). If you paid
someone to do both nursing and housework, you can deduct only the cost of the
nursing help.
• Hospital care (including meals and
lodging), clinic costs, and lab fees.
• Qualified long-term care services (see
Pub. 502).
• The supplemental part of Medicare insurance (Medicare B).
• The premiums you pay for Medicare
Part D insurance.
• A program to stop smoking and for
prescription medicines to alleviate nicotine
withdrawal.
• A weight-loss program as treatment
for a specific disease (including obesity)
diagnosed by a doctor.
• Medical treatment at a center for drug
or alcohol addiction.
• Medical aids such as eyeglasses, contact lenses, hearing aids, braces, crutches,
wheelchairs, and guide dogs, including the
cost of maintaining them.

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• Surgery to improve defective vision,
such as laser eye surgery or radial keratotomy.
• Lodging expenses (but not meals)
while away from home to receive medical
care in a hospital or a medical care facility
related to a hospital, provided there was no
significant element of personal pleasure,
recreation, or vacation in the travel. Do not
deduct more than $50 a night for each eligible person.
• Ambulance service and other travel
costs to get medical care. If you used your
own car, you can claim what you spent for
gas and oil to go to and from the place you
received the care; or you can claim 19 cents
a mile (27 cents a mile after June 30, 2008).
Add parking and tolls to the amount you
claim under either method.
Note. Certain medical expenses paid out of

a deceased taxpayer’s estate can be claimed
on the deceased taxpayer’s final return. See
Pub. 502 for details.
Limit on long-term care premiums you can
deduct. The amount you can deduct for

qualified long-term care contracts (as defined in Pub. 502) depends on the age, at
the end of 2008, of the person for whom the
premiums were paid. See the chart below
for details.
IF the person
was, at the end
of 2008, age . . .

THEN the most
you can deduct
is . . .

40 or under

$ 310

41–50

$ 580

51–60

$ 1,150

61–70

$ 3,080

71 or older

$ 3,850

Examples of Medical and
Dental Payments You
Cannot Deduct
• The cost of diet food.
• Cosmetic surgery unless it was neces-

sary to improve a deformity related to a
congenital abnormality, an injury from an
accident or trauma, or a disfiguring disease.
• Life insurance or income protection
policies.
• The Medicare tax on your wages and
tips or the Medicare tax paid as part of the
self-employment tax or household employment taxes.

If you were age 65 or older but
not entitled to social security
benefits, you can deduct premiums you voluntarily paid for
Medicare A coverage.
• Nursing care for a healthy baby. But
you may be able to take a credit for the
amount you paid. See the instructions for
Form 1040, line 48.
• Illegal operations or drugs.
• Imported drugs not approved by the
U.S. Food and Drug Administration

TIP

(FDA). This includes foreign-made versions of U.S.-approved drugs manufactured
without FDA approval.
• Nonprescription medicines (including
nicotine gum and certain nicotine patches).
• Travel your doctor told you to take for
rest or a change.
• Funeral, burial, or cremation costs.

Line 1
Medical and Dental
Expenses
Enter the total of your medical and dental
expenses (see page A-1), after you reduce
these expenses by any payments received
from insurance or other sources. See Reimbursements on this page.

Do not forget to include insurance premiums you paid for
TIP
medical and dental care. But if
you claimed the self-employed
health insurance deduction on Form 1040,
line 29, reduce the premiums by the amount
on line 29.
Note. If, during 2008, you were an eligible
trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, or
Pension Benefit Guaranty Corporation pension recipient, you must complete Form
8885 before completing Schedule A, line 1.
When figuring the amount of insurance
premiums you can deduct on Schedule A,
do not include:
• Any amounts you included on Form
8885, line 4,
• Any qualified health insurance premiums you paid to “U.S. Treasury — HCTC,”
or
• Any health coverage tax credit advance payments shown in box 1 of Form
1099-H.
Whose medical and dental expenses can
you include? You can include medical and

dental bills you paid for anyone who was
one of the following either when the services were provided or when you paid for
them.
• Yourself and your spouse.
• All dependents you claim on your return.
• Your child whom you do not claim as
a dependent because of the rules for children of divorced or separated parents.
• Any person you could have claimed as
a dependent on your return except that person received $3,500 or more of gross income or filed a joint return.
• Any person you could have claimed as
a dependent except that you, or your spouse
if filing jointly, can be claimed as a dependent on someone else’s 2008 return.
Example. You provided over half of
your mother’s support but cannot claim her
as a dependent because she received wages
of $3,500 in 2008. You can include on line

A-2

1 any medical and dental expenses you paid
in 2008 for your mother.
Reimbursements. If your insurance com-

pany paid the provider directly for part of
your expenses, and you paid only the
amount that remained, include on line 1
only the amount you paid. If you received a
reimbursement in 2008 for medical or dental expenses you paid in 2008, reduce your
2008 expenses by this amount. If you received a reimbursement in 2008 for prior
year medical or dental expenses, do not
reduce your 2008 expenses by this amount.
But if you deducted the expenses in the
earlier year and the deduction reduced your
tax, you must include the reimbursement in
income on Form 1040, line 21. See Pub.
502 for details on how to figure the amount
to include.
Cafeteria plans. Do not include on line 1

insurance premiums paid by an
employer-sponsored health insurance plan
(cafeteria plan) unless the premiums are
included in box 1 of your Form(s) W-2.
Also, do not include any other medical and
dental expenses paid by the plan unless the
amount paid is included in box 1 of your
Form(s) W-2.

Taxes You Paid
Taxes You Cannot Deduct
• Federal income and excise taxes.
• Social security, Medicare, federal un-

employment (FUTA), and railroad retirement (RRTA) taxes.
• Customs duties.
• Federal estate and gift taxes. But see
the instructions for line 28 on page A-10.
• Certain state and local taxes, including: tax on gasoline, car inspection fees,
assessments for sidewalks or other improvements to your property, tax you paid
for someone else, and license fees (marriage, driver’s, dog, etc.).

Line 5
You can elect to deduct state
and local general sales taxes instead of state and local income
taxes. You cannot deduct
both.

State and Local Income
Taxes
If you deduct state and local income taxes,
check box a on line 5. Include on this line
the state and local income taxes listed below.
• State and local income taxes withheld
from your salary during 2008. Your
Form(s) W-2 will show these amounts.
Forms W-2G, 1099-G, 1099-R, and
1099-MISC may also show state and local
income taxes withheld.
• State and local income taxes paid in
2008 for a prior year, such as taxes paid

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with your 2007 state or local income tax
return. Do not include penalties or interest.
• State and local estimated tax payments made during 2008, including any
part of a prior year refund that you chose to
have credited to your 2008 state or local
income taxes.
• Mandatory contributions you made to
the California, New Jersey, or New York
Nonoccupational Disability Benefit Fund,
Rhode Island Temporary Disability Benefit
Fund, or Washington State Supplemental
Workmen’s Compensation Fund.
• Mandatory contributions to the
Alaska, New Jersey, or Pennsylvania state
unemployment fund.
Do not reduce your deduction by any:
• State or local income tax refund or
credit you expect to receive for 2008, or
• Refund of, or credit for, prior year
state and local income taxes you actually
received in 2008. Instead, see the instructions for Form 1040, line 10.

State and Local General
Sales Taxes
If you elect to deduct state and local general
sales taxes, you must check box b on line
5. To figure your deduction, you can use
either your actual expenses or the optional
sales tax tables.

Actual Expenses
Generally, you can deduct the actual state
and local general sales taxes (including
compensating use taxes) you paid in 2008
if the tax rate was the same as the general
sales tax rate. However, sales taxes on
food, clothing, medical supplies, and motor
vehicles are deductible as a general sales
tax even if the tax rate was less than the
general sales tax rate. If you paid sales tax
on a motor vehicle at a rate higher than the
general sales tax rate, you can deduct only
the amount of tax that you would have paid
at the general sales tax rate on that vehicle.
Motor vehicles include cars, motorcycles,
motor homes, recreational vehicles, sport
utility vehicles, trucks, vans, and off-road
vehicles. Also include any state and local
general sales taxes paid for a leased motor
vehicle. Do not include sales taxes paid on
items used in your trade or business.

You must keep your actual receipts showing general sales
taxes paid to use this method.
Refund of general sales taxes. If you received a refund of state or local general
sales taxes in 2008 for amounts paid in
2008, reduce your actual 2008 state and
local general sales taxes by this amount. If
you received a refund of state or local general sales taxes in 2008 for prior year
purchases, do not reduce your 2008 state
and local general sales taxes by this
amount. But if you deducted your actual
state and local general sales taxes in the
earlier year and the deduction reduced your
tax, you may have to include the refund in
income on Form 1040, line 21. See Recoveries in Pub. 525 for details.

Optional Sales Tax Tables
Instead of using your actual expenses, you
can use the tables on pages A-11 through
A-13 to figure your state and local general
sales tax deduction. You may also be able
to add the state and local general sales taxes
paid on certain specified items.
To figure your state and local general
sales tax deduction using the tables, complete the worksheet on page A-4 or use the
2008 Sales Tax Deduction Calculator on
the IRS website. To use the 2008 Sales Tax
Deduction Calculator, go to www.irs.gov
and enter “Sales tax deduction calculator”
in the search box.

If your filing status is married
filing separately, both you and
your spouse elect to deduct
sales taxes, and your spouse
elects to use the optional sales tax tables,
you also must use the tables to figure your
state and local general sales tax deduction.
Instructions for Line 5b
Worksheet
Line 1. If you lived in the same state for all
of 2008, enter the applicable amount, based
on your 2008 income and exemptions, from
the optional state sales tax table for your
state on page A-11 or A-12. Read down the
“At least – But less than” columns for your
state and find the line that includes your
2008 income. If married filing separately,
do not include your spouse’s income. Your
2008 income is the amount shown on your
Form 1040, line 38, plus any nontaxable
items, such as the following.
• Tax-exempt interest.
• Veterans’ benefits.
• Nontaxable combat pay.
• Workers’ compensation.
• Nontaxable part of social security and
railroad retirement benefits.
• Nontaxable part of IRA, pension, or
annuity distributions. Do not include rollovers.
• Public assistance payments.
The exemptions column refers to the number of exemptions claimed on Form 1040,
line 6d.
What if you lived in more than one
state? If you lived in more than one state
during 2008, look up the table amount for
each state using the above rules. If there is
no table for your state, the table amount is
considered to be zero. Multiply the table
amount for each state you lived in by a
fraction. The numerator of the fraction is
the number of days you lived in the state
during 2008 and the denominator is the total number of days in the year (366). Enter
the total of the prorated table amounts for
each state on line 1. However, if you also
lived in a locality during 2008 that imposed
a local general sales tax, do not enter the
total on line 1. Instead, complete a separate
worksheet for each state you lived in and
enter the prorated amount for that state on
line 1.
Example. You lived in State A from
January 1 through August 31, 2008 (244
days), and in State B from September 1
through December 31, 2008 (122 days).

A-3

The table amount for State A is $500. The
table amount for State B is $400. You
would figure your state general sales tax as
follows.
State A:
State B:
Total

$500 x 244/366 =
$400 x 122/366 =
=

$333
133
$466

If none of the localities in which you
lived during 2008 imposed a local general
sales tax, enter $466 on line 1 of your
worksheet. Otherwise, complete a separate
worksheet for State A and State B. Enter
$333 on line 1 of the State A worksheet and
$133 on line 1 of the State B worksheet.
Line 2. If you checked the “No” box, enter
-0- on line 2, and go to line 3. If you
checked the “Yes” box and lived in the
same locality for all of 2008, enter the applicable amount, based on your 2008 income and exemptions, from the optional
local sales tax table for your locality on
page A-13. Read down the “At least – But
less than” columns for your locality and
find the line that includes your 2008 income. See the line 1 instructions on this
page to figure your 2008 income. The exemptions column refers to the number of
exemptions claimed on Form 1040, line 6d.
What if you lived in more than one locality? If you lived in more than one locality during 2008, look up the table amount
for each locality using the above rules. If
there is no table for your locality, the table
amount is considered to be zero. Multiply
the table amount for each locality you lived
in by a fraction. The numerator of the fraction is the number of days you lived in the
locality during 2008 and the denominator is
the total number of days in the year (366).
If you lived in more than one locality in the
same state and the local general sales tax
rate was the same for each locality, enter
the total of the prorated table amounts for
each locality in that state on line 2. Otherwise, complete a separate worksheet for
lines 2 through 6 for each locality and enter
each prorated table amount on line 2 of the
applicable worksheet.
Example. You lived in Locality 1 from
January 1 through August 31, 2008 (244
days), and in Locality 2 from September 1
through December 31, 2008 (122 days).
The table amount for Locality 1 is $100.
The table amount for Locality 2 is $150.
You would figure the amount to enter on
line 2 as follows. Note that this amount
may not equal your local sales tax deduction, which is figured on line 6 of the worksheet.
Locality 1:
Locality 2:
Total

$100 x 244/366 =
$150 x 122/366 =
=

$ 67
50
$117

Line 3. If you lived in California, check the
“No” box if your combined state and local
general sales tax rate is 7.25%. Otherwise,
check the “Yes” box and include on line 3
only the part of the combined rate that is
more than 7.25%.
If you lived in Nevada, check the “No”
box if your combined state and local general sales tax rate is 6.5%. Otherwise, check
the “Yes” box and include on line 3 only

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the part of the combined rate that is more
than 6.5%.
What if your local general sales tax rate
changed during 2008? If you checked the
“Yes” box and your local general sales tax
rate changed during 2008, figure the rate to
enter on line 3 as follows. Multiply each tax
rate for the period it was in effect by a
fraction. The numerator of the fraction is
the number of days the rate was in effect

during 2008 and the denominator is the total number of days in the year (366). Enter
the total of the prorated tax rates on line 3.
Example. Locality 1 imposed a 1% local general sales tax from January 1
through September 30, 2008 (274 days).
The rate increased to 1.75% for the period
from October 1 through December 31,
2008 (92 days). You would enter “1.189”
on line 3, figured as follows.

January 1 –
September 30:
October 1 –
December 31:
Total

1.00 x 274/366 =

0.749

1.75 x 92/366 =
=

0.440
1.189

What if you lived in more than one
locality in the same state during 2008?
Complete a separate worksheet for lines 2
through 6 for each locality in your state if
you lived in more than one locality in the

State and Local General Sales Tax Deduction Worksheet—Line 5b
(See the Instructions for Line 5b Worksheet that begin on page A-3.)

Keep for Your Records

Before you begin: See the instructions for line 1 on page A-3 if:
⻫
⻫

You lived in more than one state during 2008, or
You had any nontaxable income in 2008.

1. Enter your state general sales taxes from the applicable table on page A-11 or A-12 (see page A-3 of
the instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $
Next. If, for all of 2008, you lived only in Connecticut, the District of Columbia, Indiana, Kentucky,
Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, or West Virginia, skip lines 2
through 5, enter -0- on line 6, and go to line 7. Otherwise, go to line 2.
2. Did you live in Alaska, Arizona, Arkansas, California (Los Angeles County only), Colorado, Georgia,
Illinois, Louisiana, Missouri, New York State, North Carolina, South Carolina, Tennessee, Utah, or
Virginia in 2008?
No. Enter -0Yes. Enter your local general sales taxes from the applicable
table on page A-13 (see page A-3 of the instructions)

}

.........

2.

$

3. Did your locality impose a local general sales tax in 2008? Residents of California
and Nevada see page A-3 of the instructions.
No. Skip lines 3 through 5, enter -0- on line 6, and go to line 7.
Yes. Enter your local general sales tax rate, but omit the percentage sign. For
example, if your local general sales tax rate was 2.5%, enter 2.5. If your local
general sales tax rate changed or you lived in more than one locality in the same
state during 2008, see above. (If you do not know your local general sales tax
rate, contact your local government.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

.

4. Did you enter -0- on line 2 above?
No. Skip lines 4 and 5 and go to line 6.
Yes. Enter your state general sales tax rate (shown in the table heading for your
state), but omit the percentage sign. For example, if your state general sales tax
rate is 6%, enter 6.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

.

5. Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) 5.

.

6. Did you enter -0- on line 2 above?
No. Multiply line 2 by line 3

}

. . . . . . . . . . . . . . . . . . . 6. $

Yes. Multiply line 1 by line 5. If you lived in more than one locality in
the same state during 2008, see the instructions above

7. Enter your state and local general sales taxes paid on specified items, if any (see page A-5 of the
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. $
8. Deduction for general sales taxes. Add lines 1, 6, and 7. Enter the result here and the total from all
your state and local general sales tax deduction worksheets, if you completed more than one, on
Schedule A, line 5. Be sure to check box b on that line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. $

A-4

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same state during 2008 and either of the
following applies.
• Each locality did not have the same
local general sales tax rate.
• You lived in Los Angeles County,
CA.
To figure the amount to enter on line 3
of the worksheet for each locality in which
you lived (except a locality for which you
used the table on page A-13 to figure your
local general sales tax deduction), multiply
the local general sales tax rate by a fraction.
The numerator of the fraction is the number
of days you lived in the locality during
2008 and the denominator is the total number of days in the year (366).
Example. You lived in Locality 1 from
January 1 through August 31, 2008 (244
days), and in Locality 2 from September 1
through December 31, 2008 (122 days).
The local general sales tax rate for Locality
1 is 1%. The rate for Locality 2 is 1.75%.
You would enter “0.667” on line 3 for the
Locality 1 worksheet and “0.583” for the
Locality 2 worksheet, figured as follows.
Locality 1:
Locality 2:

1.00 x 244/366 =
1.75 x 122/366 =

0.667
0.583

Line 6. If you lived in more than one local-

ity in the same state during 2008, you
should have completed line 1 only on the
first worksheet for that state and separate
worksheets for lines 2 through 6 for any
other locality within that state in which you
lived during 2008. If you checked the
“Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by
the amount that you entered on line 1 for
that state on the first worksheet.
Line 7. Enter on line 7 any state and local

general sales taxes paid on the following
specified items. If you are completing more
than one worksheet, include the total for
line 7 on only one of the worksheets.
1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle,
sport utility vehicle, truck, van, and
off-road vehicle). Also include any state
and local general sales taxes paid for a
leased motor vehicle. If the state sales tax
rate on these items is higher than the general sales tax rate, only include the amount
of tax you would have paid at the general
sales tax rate.
2. An aircraft or boat, if the tax rate was
the same as the general sales tax rate.
3. A home (including a mobile home or
prefabricated home) or substantial addition
to or major renovation of a home, but only
if the tax rate was the same as the general
sales tax rate and any of the following applies.
a. Your state or locality imposes a general sales tax directly on the sale of a home
or on the cost of a substantial addition or
major renovation.
b. You purchased the materials to build
a home or substantial addition or to perform a major renovation and paid the sales
tax directly.
c. Under your state law, your contractor
is considered your agent in the construction

of the home or substantial addition or the
performance of a major renovation. The
contract must state that the contractor is
authorized to act in your name and must
follow your directions on construction decisions. In this case, you will be considered
to have purchased any items subject to a
sales tax and to have paid the sales tax
directly.
Do not include sales taxes paid on items
used in your trade or business. If you received a refund of state or local general
sales taxes in 2008, see Refund of general
sales taxes on page A-3.

Line 6
Real Estate Taxes
Include taxes (state, local, or foreign) you
paid on real estate you own that was not
used for business, but only if the taxes are
based on the assessed value of the property.
Also, the assessment must be made uniformly on property throughout the community, and the proceeds must be used for
general community or governmental purposes. Pub. 530 explains the deductions
homeowners can take.
Do not include the following amounts
on line 6.
• Itemized charges for services to specific property or persons (for example, a
$20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons
of water consumed, or a flat charge for
mowing a lawn that had grown higher than
permitted under a local ordinance).
• Charges for improvements that tend to
increase the value of your property (for example, an assessment to build a new sidewalk). The cost of a property improvement
is added to the basis of the property. However, a charge is deductible if it is used only
to maintain an existing public facility in
service (for example, a charge to repair an
existing sidewalk, and any interest included
in that charge).
If your mortgage payments include your
real estate taxes, you can deduct only the
amount the mortgage company actually
paid to the taxing authority in 2008.
If you sold your home in 2008, any real
estate tax charged to the buyer should be
shown on your settlement statement and in
box 5 of any Form 1099-S you received.
This amount is considered a refund of real
estate taxes. See Refunds and rebates below. Any real estate taxes you paid at closing should be shown on your settlement
statement.
Refunds and rebates. If you received a refund or rebate in 2008 of real estate taxes
you paid in 2008, reduce your deduction by
the amount of the refund or rebate. If you
received a refund or rebate in 2008 of real
estate taxes you paid in an earlier year, do
not reduce your deduction by this amount.
Instead, you must include the refund or rebate in income on Form 1040, line 21, if
you deducted the real estate taxes in the
earlier year and the deduction reduced your
tax. See Recoveries in Pub. 525 for details

A-5

on how to figure the amount to include in
income.

Line 7
Personal Property Taxes
Enter the state and local personal property
taxes you paid, but only if the taxes were
based on value alone and were imposed on
a yearly basis.
Example. You paid a yearly fee for the
registration of your car. Part of the fee was
based on the car’s value and part was based
on its weight. You can deduct only the part
of the fee that was based on the car’s value.

Line 8
Other Taxes
If you had any deductible tax not listed on
line 5, 6, or 7, list the type and amount of
tax. Enter only one total on line 8. Include
on this line income tax you paid to a foreign
country or U.S. possession.

TIP

You may want to take a credit
for the foreign tax instead of a
deduction. See the instructions
for Form 1040, line 47, for

details.

Interest You Paid
Whether your interest expense is treated as
investment interest, personal interest, or
business interest depends on how and when
you used the loan proceeds. See Pub. 535
for details.
In general, if you paid interest in 2008
that applies to any period after 2008, you
can deduct only amounts that apply for
2008.

Lines 10 and 11
Home Mortgage Interest
A home mortgage is any loan that is secured by your main home or second home.
It includes first and second mortgages,
home equity loans, and refinanced mortgages.
A home can be a house, condominium,
cooperative, mobile home, boat, or similar
property. It must provide basic living accommodations including sleeping space,
toilet, and cooking facilities.
Limit on home mortgage interest. If you

took out any mortgages after October 13,
1987, your deduction may be limited. Any
additional amounts borrowed after October
13, 1987, on a line-of-credit mortgage you
had on that date are treated as a mortgage
taken out after October 13, 1987. If you
refinanced a mortgage you had on October
13, 1987, treat the new mortgage as taken
out on or before October 13, 1987. But if
you refinanced for more than the balance of

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the old mortgage, treat the excess as a mortgage taken out after October 13, 1987.
See Pub. 936 to figure your deduction if
either (1) or (2) below applies. If you had
more than one home at the same time, the
dollar amounts in (1) and (2) apply to the
total mortgages on both homes.
1. You took out any mortgages after October 13, 1987, and used the proceeds for
purposes other than to buy, build, or improve your home, and all of these mortgages totaled over $100,000 at any time
during 2008. The limit is $50,000 if married filing separately. An example of this
type of mortgage is a home equity loan
used to pay off credit card bills, buy a car,
or pay tuition.
2. You took out any mortgages after October 13, 1987, and used the proceeds to
buy, build, or improve your home, and
these mortgages plus any mortgages you
took out on or before October 13, 1987,
totaled over $1 million at any time during
2008. The limit is $500,000 if married filing separately.

If the total amount of all mortgages is more than the fair market value of the home,
additional limits apply. See
Pub. 936.

Line 10
Enter on line 10 mortgage interest and
points reported to you on Form 1098 under
your social security number (SSN). If this
form shows any refund of overpaid interest,
do not reduce your deduction by the refund.
Instead, see the instructions for Form 1040,
line 21. If you and at least one other person
(other than your spouse if filing jointly)
were liable for and paid interest on the
mortgage, and the interest was reported on
Form 1098 under the other person’s SSN,
report your share of the interest on line 11
(as explained in the line 11 instructions below).
If you paid more interest to the recipient
than is shown on Form 1098, see Pub. 936
to find out if you can deduct the additional
interest. If you can, attach a statement explaining the difference and enter “See attached” to the right of line 10.

If you are claiming the mortgage interest credit (for holders
of qualified mortgage credit
certificates issued by state or local governmental units or agencies), subtract the amount shown on Form 8396, line
3, from the total deductible interest you
paid on your home mortgage. Enter the result on line 10.

Line 11
If you did not receive a Form 1098 from the
recipient, report your deductible mortgage
interest on line 11.
If you bought your home from the recipient, be sure to show that recipient’s name,
identifying number, and address on the
dotted lines next to line 11. If the recipient
is an individual, the identifying number is
his or her social security number (SSN).

Otherwise, it is the employer identification
number. You must also let the recipient
know your SSN. If you do not show the
required information about the recipient or
let the recipient know your SSN, you may
have to pay a $50 penalty.
If you and at least one other person
(other than your spouse if filing jointly)
were liable for and paid interest on the
mortgage, and the other person received the
Form 1098, attach a statement to your return showing the name and address of that
person. To the right of line 11, enter “See
attached.”

Mortgage insurance provided by the Department of Veterans Affairs and the Rural
Housing Service is commonly known as a
funding fee and guarantee fee respectively.
These fees can be deducted fully in 2008 if
the mortgage insurance contract was issued
in 2008. Contact the mortgage insurance
issuer to determine the deductible amount
if it is not included in box 4 of Form 1098.
Prepaid mortgage insurance. If you paid

Points Not Reported on
Form 1098

premiums for qualified mortgage insurance
that are allocable to periods after 2008,
such premiums are treated as paid in the
year to which they are allocated. No deduction is allowed for the unamortized balance
if the mortgage is satisfied before its term.
The two preceding sentences do not apply
to qualified mortgage insurance provided
by the Department of Veterans Affairs or
the Rural Housing Service.

Points are shown on your settlement statement. Points you paid only to borrow
money are generally deductible over the
life of the loan. See Pub. 936 to figure the
amount you can deduct. Points paid for
other purposes, such as for a lender’s services, are not deductible.

If, in 2007, you obtained a mortgage and
paid qualified mortgage insurance premiums that are allocable to periods after 2007,
you can allocate the premiums over the
shorter of the stated term of the mortgage or
84 months, beginning with the month the
insurance was obtained. See Pub. 936.

Refinancing. Generally, you must deduct

At the time these instructions went to
print, additional guidance was not yet issued for mortgage insurance premiums that
were paid in 2008, but allocable to periods
after 2008. For more details, go to www.irs.
gov, click on More Forms and Publications,
and then on What’s Hot in forms and publications, or see Pub. 553, Highlights of 2008
Tax Changes, available in early 2009.

Line 12

points you paid to refinance a mortgage
over the life of the loan. This is true even if
the new mortgage is secured by your main
home.
If you used part of the proceeds to improve your main home, you may be able to
deduct the part of the points related to the
improvement in the year paid. See Pub. 936
for details.

TIP

If you paid off a mortgage
early, deduct any remaining
points in the year you paid off
the mortgage.

Line 13
Qualified Mortgage
Insurance Premiums
Enter the qualified mortgage insurance premiums you paid under a mortgage insurance contract issued after December 31,
2006, in connection with home acquisition
debt that was secured by your first or second home. See Prepaid mortgage insurance
on this page if you paid any premiums allocable to any period after 2008. Box 4 of
Form 1098 may show the amount of premiums you paid in 2008. If you and at least
one other person (other than your spouse if
filing jointly) were liable for and paid the
premiums in connection with the loan, and
the premiums were reported on Form 1098
under the other person’s SSN, report your
share of the premiums on line 13.
Qualified mortgage insurance is mortgage insurance provided by the Department
of Veterans Affairs, the Federal Housing
Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners
Protection Act of 1998 as in effect on December 20, 2006).

A-6

Limit on amount you can deduct. You

cannot deduct your mortgage insurance
premiums if the amount on Form 1040, line
38, is more than $109,000 ($54,500 if married filing separately). If the amount on
Form 1040, line 38, is more than $100,000
($50,000 if married filing separately), your
deduction is limited and you must use the
worksheet on page A-7 to figure your deduction.

Line 14
Investment Interest
Investment interest is interest paid on
money you borrowed that is allocable to
property held for investment. It does not
include any interest allocable to passive activities or to securities that generate tax-exempt income.
Complete and attach Form 4952 to figure your deduction.
Exception. You do not have to file Form

4952 if all three of the following apply.
1. Your investment interest expense is
not more than your investment income
from interest and ordinary dividends minus
any qualified dividends.
2. You have no other deductible investment expenses.
3. You have no disallowed investment
interest expense from 2007.

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Alaska Permanent Fund dividends, including those reported
on Form 8814, are not investment income.
For more details, see Pub. 550.

Gifts to Charity
You can deduct contributions or gifts you
gave to organizations that are religious,
charitable, educational, scientific, or literary in purpose. You can also deduct what
you gave to organizations that work to prevent cruelty to children or animals. Certain
whaling captains may be able to deduct
expenses paid in 2008 for Native Alaskan
subsistence bowhead whale hunting activities. See Pub. 526 for details.
To verify an organization’s charitable
status, you can:
• Check with the organization to which
you made the donation. The organization
should be able to provide you with verification of its charitable status.
• See Pub. 78 for a list of most qualified
organizations. You can access Pub. 78 on
the IRS website at www.irs.gov under
Charities and Non-Profits then Contributors.
• Call our Tax Exempt/Government Entities Customer Account Services at
1-877-829-5500.

Examples of Qualified
Charitable Organizations
• Churches, mosques, synagogues, tem-

ples, etc.
• Boy Scouts, Boys and Girls Clubs of
America, CARE, Girl Scouts, Goodwill Industries, Red Cross, Salvation Army,
United Way, etc.
• Fraternal orders, if the gifts will be
used for the purposes listed earlier on this
page.
• Veterans’ and certain cultural groups.
• Nonprofit schools, hospitals, and organizations whose purpose is to find a cure
for, or help people who have, arthritis,
asthma, birth defects, cancer, cerebral
palsy, cystic fibrosis, diabetes, heart disease, hemophilia, mental illness or retardation, multiple sclerosis, muscular
dystrophy, tuberculosis, etc.
• Federal, state, and local governments
if the gifts are solely for public purposes.

Contributions You Can
Deduct
Contributions can be in cash, property, or
out-of-pocket expenses you paid to do volunteer work for the kinds of organizations
described earlier. If you drove to and from
the volunteer work, you can take the actual
cost of gas and oil or 14 cents a mile. But, if
the volunteer work was to provide relief
related to a Midwestern disaster area, the
amount is 36 cents a mile (41 cents a mile
after June 30, 2008), see Pub. 4492-B for
more details. Add parking and tolls to the

amount you claim under either method. But
do not deduct any amounts that were repaid
to you.
Gifts from which you benefit. If you made

a gift and received a benefit in return, such
as food, entertainment, or merchandise,
you can generally only deduct the amount
that is more than the value of the benefit.
But this rule does not apply to certain membership benefits provided in return for an
annual payment of $75 or less or to certain
items or benefits of token value. For details, see Pub. 526.
Example. You paid $70 to a charitable
organization to attend a fund-raising dinner
and the value of the dinner was $40. You
can deduct only $30.
Gifts of $250 or more. You can deduct a
gift of $250 or more only if you have a
statement from the charitable organization
showing the information in (1) and (2) below.

1. The amount of any money contributed and a description (but not value) of
any property donated.
2. Whether the organization did or did
not give you any goods or services in return
for your contribution. If you did receive
any goods or services, a description and
estimate of the value must be included. If
you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but

Qualified Mortgage Insurance Premiums Deduction Worksheet—
Line 13
Before you begin:

⻫

Keep for Your Records

See the instructions for line 13 on page A-6 to see if you must use this worksheet to figure
your deduction.

1. Enter the total premiums you paid in 2008 for qualified mortgage insurance for a contract issued after
December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Enter $100,000 ($50,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . 3.
4. Is the amount on line 2 more than the amount on line 3?
No. Your deduction is not limited. Enter the amount from line 1 above on
Schedule A, line 13. Do not complete the rest of this worksheet.
Yes. Subtract line 3 from line 2. If the result is not a multiple of $1,000 ($500
if married filing separately), increase it to the next multiple of $1,000
($500 if married filing separately). For example, increase $425 to $1,000,
increase $2,025 to $3,000; or if married filing separately, increase $425
to $500, increase $2,025 to $2,500, etc. . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result as a decimal. If the
result is 1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Qualified mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result
here and on Schedule A, line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A-7

1.

5.
6.
7.

.

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it does not have to describe or value the
benefit.
In figuring whether a gift is $250 or
more, do not combine separate donations.
For example, if you gave your church $25
each week for a total of $1,300, treat each
$25 payment as a separate gift. If you made
donations through payroll deductions, treat
each deduction from each paycheck as a
separate gift. See Pub. 526 if you made a
separate gift of $250 or more through payroll deduction.

You must get the statement by
the date you file your return or
TIP
the due date (including extensions) for filing your return,
whichever is earlier. Do not attach the
statement to your return. Instead, keep it for
your records.

• Gifts to individuals and groups that
are run for personal profit.
• Gifts to foreign organizations. But
you may be able to deduct gifts to certain
U.S. organizations that transfer funds to
foreign charities and certain Canadian, Israeli, and Mexican charities. See Pub. 526
for details.
• Gifts to organizations engaged in certain political activities that are of direct financial interest to your trade or business.
See section 170(f)(9).
• Gifts to groups whose purpose is to
lobby for changes in the laws.
• Gifts to civic leagues, social and
sports clubs, labor unions, and chambers of
commerce.
• Value of benefits received in connection with a contribution to a charitable organization. See Pub. 526 for exceptions.

Limit on the amount you can deduct. See

Pub. 526 to figure the amount of your deduction if any of the following applies.

Line 16

1. Your cash contributions or contributions of ordinary income property are more
than 30% of the amount on Form 1040, line
38.
2. Your gifts of capital gain property are
more than 20% of the amount on Form
1040, line 38.
3. You gave gifts of property that increased in value or gave gifts of the use of
property.

Gifts by Cash or Check

The limit described in item (1)
above does not apply to certain
TIP
cash contributions paid for relief efforts in a Midwestern disaster area if you elect to treat those
contributions as qualified contributions.
See Pub. 526 for details.

Contributions You Cannot
Deduct
• Travel expenses (including meals and

lodging) while away from home, unless
there was no significant element of personal pleasure, recreation, or vacation in
the travel.
• Political contributions.
• Dues, fees, or bills paid to country
clubs, lodges, fraternal orders, or similar
groups.
• Cost of raffle, bingo, or lottery tickets.
But you may be able to deduct these expenses on line 28. See the instructions on
page A-10 for details.
• Cost of tuition. But you may be able to
deduct this expense on line 21 (see page
A-9), or Form 1040, line 34, or take a credit
for this expense (see Form 8863).
• Value of your time or services.
• Value of blood given to a blood bank.
• The transfer of a future interest in tangible personal property (generally, until the
entire interest has been transferred).

Enter on line 16 the total gifts you made in
cash or by check (including out-of-pocket
expenses).
Recordkeeping. For any contribution

made in cash, regardless of the amount, you
must maintain as a record of the contribution a bank record (such as a canceled
check or credit card statement) or a written
record from the charity. The written record
must include the name of the charity, date,
and amount of the contribution. If you
made contributions through payroll deduction, see Pub. 526 for information on the
records you must keep. Do not attach the
record to your tax return. Instead, keep it
with your other tax records.

Line 17
Other Than by Cash or
Check
Enter your contributions of property. If you
gave used items, such as clothing or furniture, deduct their fair market value at the
time you gave them. Fair market value is
what a willing buyer would pay a willing
seller when neither has to buy or sell and
both are aware of the conditions of the sale.
For more details on determining the value
of donated property, see Pub. 561.
If the amount of your deduction is more
than $500, you must complete and attach
Form 8283. For this purpose, the “amount
of your deduction” means your deduction
before applying any income limits that
could result in a carryover of contributions.
If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane,
you must also attach a statement from the
charitable organization to your return. The
organization may use Form 1098-C to provide the required information. If your total
deduction is over $5,000, you may also
have to get appraisals of the values of the

A-8

donated property. This amount is $500 for
certain contributions of clothing and household items (see below). See Form 8283 and
its instructions for details.
Contributions of clothing and household
items. A deduction for these contributions

will be allowed only if the items are in good
used condition or better. However, this rule
does not apply to a contribution of any single item for which a deduction of more than
$500 is claimed and for which you include
a qualified appraisal and Form 8283 with
your tax return.
Recordkeeping. If you gave property, you

should keep a receipt or written statement
from the organization you gave the property to, or a reliable written record, that
shows the organization’s name and address, the date and location of the gift, and a
description of the property. For each gift of
property, you should also keep reliable
written records that include:
• How you figured the property’s value
at the time you gave it. If the value was
determined by an appraisal, keep a signed
copy of the appraisal.
• The cost or other basis of the property
if you must reduce it by any ordinary income or capital gain that would have resulted if the property had been sold at its
fair market value.
• How you figured your deduction if
you chose to reduce your deduction for
gifts of capital gain property.
• Any conditions attached to the gift.

If your total deduction for gifts
of property is over $500, you
gave less than your entire interest in the property, or you made
a “qualified conservation contribution,”
your records should contain additional information. See Pub. 526 for details.

Line 18
Carryover From Prior Year
Enter any carryover of contributions that
you could not deduct in an earlier year because they exceeded your adjusted gross
income limit. See Pub. 526 for details.

Casualty and Theft
Losses
Line 20
Complete and attach Form 4684 to figure
the amount of your loss to enter on line 20.
You may be able to deduct part or all of
each loss caused by theft, vandalism, fire,
storm, or similar causes, and car, boat, and
other accidents. You may also be able to
deduct money you had in a financial institution but lost because of the insolvency or
bankruptcy of the institution.

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You can deduct nonbusiness casualty or
theft losses only to the extent that:
1. The amount of each separate casualty
or theft loss is more than $100, and
2. The total amount of all losses during
the year (reduced by the $100 limit discussed in (1) above) is more than 10% of
the amount on Form 1040, line 38.
Exceptions for certain disaster losses. Exceptions to the above limitations apply to
losses in certain disaster areas.
Kansas disaster area. Casualty and
theft losses that occurred in the Kansas disaster area after May 3, 2007, are not subject
to the $100 and 10% of adjusted gross income (AGI) limitations if the losses were
attributable to the storms and tornadoes that
began May 4, 2007. See Pub. 4492-A for
more details.
Midwestern disaster areas. Casualty
and theft losses that occurred in a Midwestern disaster area are not subject to the $100
and 10% of AGI limitations if the losses
were attributable to the severe storms, tornadoes or flooding. See Pub. 4492-B for
more details.
Federally declared disaster areas. The
10% of AGI limitation does not apply to a
casualty loss in a federally declared disaster.
Special rules apply if you had both gains
and losses from nonbusiness casualties or
thefts. See Form 4684 and its instructions
for details.
Use Schedule A, line 23, to deduct the
costs of proving that you had a property
loss. Examples of these costs are appraisal
fees and photographs used to establish the
amount of your loss.
For information on federal disaster area
losses, see Pub. 547.

Job Expenses and
Certain Miscellaneous
Deductions
You can deduct only the part of these expenses that exceeds 2% of the amount on
Form 1040, line 38.
Pub. 529 discusses the types of expenses that can and cannot be deducted.

Examples of Expenses You
Cannot Deduct
• Political contributions.
• Legal expenses for personal matters

that do not produce taxable income.
• Lost or misplaced cash or property.
• Expenses for meals during regular or
extra work hours.
• The cost of entertaining friends.
• Commuting expenses. See Pub. 529
for the definition of commuting.
• Travel expenses for employment
away from home if that period of employ-

ment exceeds 1 year. See Pub. 529 for an
exception for certain federal employees.
• Travel as a form of education.
• Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment.
• Club dues.
• Expenses of adopting a child. But you
may be able to take a credit for adoption
expenses. See Form 8839 for details.
• Fines and penalties.
• Expenses of producing tax-exempt income.

Line 21
Unreimbursed Employee
Expenses
Enter the total ordinary and necessary job
expenses you paid for which you were not
reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not
considered reimbursements.)
An ordinary expense is one that is common and accepted in your field of trade,
business, or profession. A necessary expense is one that is helpful and appropriate
for your business. An expense does not
have to be required to be considered necessary.
But you must fill in and attach Form
2106 if either (1) or (2) below applies.
1. You claim any travel, transportation,
meal, or entertainment expenses for your
job.
2. Your employer paid you for any of
your job expenses that you would otherwise report on line 21.

If you used your own vehicle,
are using the standard mileage
rate, and (2) above does not apply, you may be able to file
Form 2106-EZ instead.

TIP

If you do not have to file Form 2106 or
2106-EZ, list the type and amount of each
expense on the dotted line next to line 21. If
you need more space, attach a statement
showing the type and amount of each expense. Enter the total of all these expenses
on line 21.

Do not include on line 21 any
educator expenses you deducted on Form 1040, line 23.
Examples of other expenses to include
on line 21 are:
• Safety equipment, small tools, and
supplies needed for your job.
• Uniforms required by your employer
that are not suitable for ordinary wear.
• Protective clothing required in your
work, such as hard hats, safety shoes, and
glasses.
• Physical examinations required by
your employer.

A-9

• Dues to professional organizations
and chambers of commerce.
• Subscriptions to professional journals.
• Fees to employment agencies and
other costs to look for a new job in your
present occupation, even if you do not get a
new job.
• Certain business use of part of your
home. For details, including limits that apply, use TeleTax topic 509 (see page 84 of
the Form 1040 instructions) or see Pub.
587.
• Certain educational expenses. For details, use TeleTax topic 513 (see page 84 of
the Form 1040 instructions) or see Pub.
970. Reduce your educational expenses by
any tuition and fees deduction you claimed
on Form 1040, line 34.
TIP

You may be able to take a credit
for your educational expenses
instead of a deduction. See
Form 8863 for details.

Line 22
Tax Preparation Fees
Enter the fees you paid for preparation of
your tax return, including fees paid for filing your return electronically. If you paid
your tax by credit card, do not include the
convenience fee you were charged.

Line 23
Other Expenses
Enter the total amount you paid to produce
or collect taxable income and manage or
protect property held for earning income.
But do not include any personal expenses.
List the type and amount of each expense
on the dotted lines next to line 23. If you
need more space, attach a statement showing the type and amount of each expense.
Enter one total on line 23.
Examples of expenses to include on line
23 are:

• Certain legal and accounting fees.
• Clerical help and office rent.
• Custodial (for example, trust account)

fees.

• Your share of the investment expenses of a regulated investment company.
• Certain losses on nonfederally insured
deposits in an insolvent or bankrupt financial institution. For details, including limits
that apply, see Pub. 529.
• Casualty and theft losses of property
used in performing services as an employee
from Form 4684, lines 38 and 44b, or Form
4797, line 18a.
• Deduction for repayment of amounts
under a claim of right if $3,000 or less.

Page 10 of 15 of 2008 Instructions for Schedules A & B (Form 1040) 8:49 - 14-NOV-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Other Miscellaneous
Deductions
Line 28
Only the expenses listed next can be deducted on this line. List the type and
amount of each expense on the dotted lines
next to line 28. If you need more space,
attach a statement showing the type and
amount of each expense. Enter one total on
line 28.
• Gambling losses, but only to the extent of gambling winnings reported on
Form 1040, line 21.
• Casualty and theft losses of
income-producing property from Form
4684, lines 38 and 44b, or Form 4797, line
18a.
• Loss from other activities from
Schedule K-1 (Form 1065-B), box 2.
• Federal estate tax on income in respect of a decedent.

• Amortizable bond premium on bonds
acquired before October 23, 1986.
• Deduction for repayment of amounts
under a claim of right if over $3,000. See
Pub. 525 for details.
• Certain unrecovered investment in a
pension.
• Impairment-related work expenses of
a disabled person.
For more details, see Pub. 529.

Total Itemized
Deductions

Form 1040, line 38, is over $159,950
($79,975 if married filing separately).
For line 2 of the worksheet below, you
will need to know the amount, if any, of
your charitable contributions you elected to
treat as qualified contributions for relief efforts in a Midwestern disaster area.

Line 30
If you elect to itemize for state tax or other
purposes even though your itemized deductions are less than your standard deduction,
check the box on line 30.

Line 29
Use the worksheet below to figure the
amount to enter on line 29 if the amount on

Itemized Deductions Worksheet—Line 29

Keep for Your Records

1. Enter the total of the amounts from Schedule A, lines 4, 9, 15, 19, 20, 27, and 28 . . . . . . . . . . . . . .
2. Enter the total of the amounts from Schedule A, lines 4, 14, and 20, plus any gambling and casualty
or theft losses included on line 28. Also include in the total any amount included on Schedule A,
line 16, that you elected to treat as qualified contributions for relief efforts in a Midwestern disaster
area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2.

Be sure your total gambling and casualty or theft losses are clearly identified on the
dotted lines next to line 28.
3. Is the amount on line 2 less than the amount on line 1?
STOP
No.
Your deduction is not limited. Enter the amount from line 1 above on Schedule A,
line 29.
Yes. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Multiply line 3 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter $159,950 ($79,975) if married filing separately) . . . . . . . . . . . . . . . . . . . 6.
7. Is the amount on line 6 less than the amount on line 5?
STOP
No.
Your deduction is not limited. Enter the amount from line 1
above on Schedule A, line 29.
Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Multiply line 7 by 3% (.03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Divide line 9 by 1.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Total itemized deductions. Subtract line 11 from line 1. Enter the result here and on Schedule A,
line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

A-10

Page 11 of 15 of 2008 Instructions for Schedules A & B (Form 1040) 8:49 - 14-NOV-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2008 Optional State and Certain Local Sales Tax Tables
Income
At
least

But
less
than

Exemptions
1

2

3

4

Exemptions
5

Over
5

1

2

3

4

4.0000% Arizona

Alabama

Exemptions
5

Over
5

201
310
364
411

246
377
442
497

278
423
495
557

303
460
538
604

324
491
574
644

354
535
625
701

205
350
427
494

234
397
484
560

253
429
522
604

267
453
551
637

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

453
491
527
560
592

546
591
634
673
710

612
661
708
751
792

663
717
767
814
857

707
764
817
866
912

769
830
888
941
991

556
612
667
718
766

629
693
754
811
866

678
747
812
873
932

715 745 788
787 821 867
856 892 942
920 959 1012
982 1023 1080

633
690
740
790
835

759 846 915
825 919 994
883 983 1062
941 1047 1131
994 1104 1192

973
1057
1129
1201
1266

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

2

3

5.6000% Arkansas

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1

279
472
575
664

295
500
608
702

287
469
563
644

334
544
652
746

4

Exemptions
5

Over
5

1

2

3
1

6.0000% California

366
594
712
813

390
633
758
866

410
665
796
909

438
709
849
969

717 830 905
784 907 988
848 979 1067
907 1047 1141
962 1111 1210

963
1051
1135
1213
1287

1010
1103
1191
1272
1350

1077
1175
1269
1355
1437

1384
1518
1635
1752
1858

1452
1592
1714
1837
1948

1546
1695
1825
1955
2072

246
423
518
601

280
480
587
681

303
518
633
734

4

Exemptions
5

Over
5

1

2

3

4

7.2500% Colorado

5

Over
5

2.9000%

320
547
668
774

334
571
696
806

354
603
736
852

96
161
195
225

110
184
223
257

120
200
242
279

127
212
256
295

133
222
268
308

142
235
285
327

678 767 825 870
748 846 910 960
815 922 991 1045
879 992 1067 1124
939 1060 1140 1201

907
1000
1088
1171
1251

958
1056
1149
1236
1320

253
278
302
325
347

288
317
344
370
394

312
343
372
399
425

330
363
393
422
450

345
379
411
441
470

366
402
436
467
497

1356
1502
1631
1761
1879

1430
1584
1720
1856
1980

375
415
450
485
517

426
471
510
550
586

460
508
550
592
631

486
536
581
625
666

507
560
606
652
694

537
593
641
690
734

1060 1254 1390 1497 1587 1715 1522 1711 1836 1931 2008 2116 1801 2070 2250 2387 2501 2660 1885 2117 2269 2385 2481 2613

681

768

826

871

908

959

Connecticut

1056 831 938 1009
1146 920 1039 1117
1224 1000 1128 1212
1301 1079 1217 1307
1371 1152 1298 1394

1063
1176
1276
1376
1467

6.0000% District of Columbia

1107
1225
1328
1433
1527

1169
1292
1401
1511
1610

1036
1138
1227
1316
1397

1196
1312
1414
1516
1609

1302
1429
1539
1650
1749

5.7500% Florida

1019
1131
1230
1330
1420

1150
1275
1386
1497
1599

1236
1370
1488
1608
1716

6.0000% Georgia

1302
1443
1567
1692
1805

4.0000% Hawaii

4.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

208
356
433
501

231
393
479
554

245
417
508
587

256
435
530
612

264
450
547
633

276
470
572
661

165
285
349
405

186
319
391
453

200
342
418
485

210
359
439
509

219
374
456
528

230
393
480
555

210
359
438
507

244
414
504
584

266
451
549
634

317
535
650
751

142
236
286
329

163
270
326
375

177
293
353
405

188
310
373
428

197
324
390
447

209
343
413
474

239
378
447
507

283
445
526
596

313
490
579
656

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

563
620
675
725
774

622
685
744
800
853

659
726
789
848
905

688
757
823
884
943

711 742
782 817
850 887
914 954
974 1017

456
503
548
591
631

510
563
613
660
705

545
601
655
705
753

572
631
687
739
789

594
655
713
767
819

625
688
749
806
860

571
629
685
738
788

656
722
786
845
902

712 756 792 843
784 832 872 927
853 905 948 1008
917 973 1019 1083
979 1038 1086 1154

368
404
438
470
501

419
459
498
534
568

452
496
537
576
612

478
524
567
608
647

499
547
592
634
675

529
579
627
671
713

561
609
655
697
738

658
715
768
817
864

724 775 818 877
786 841 887 952
844 904 953 1021
898 961 1013 1086
949 1015 1070 1147

120,000 838 924 979
140,000 927 1022 1083
160,000 1005 1108 1174
180,000 1084 1194 1265
200,000 1156 1273 1348
200,000 or more 1518 1671 1769

1021
1129
1223
1319
1405

685 765 816 856 888 933 854
760 848 905 948 984 1033 946
826 921 983 1030 1068 1121 1028
893 995 1061 1112 1153 1210 1110
954 1062 1133 1186 1230 1291 1185

978
1082
1175
1268
1352

541
597
647
697
742

614
676
732
787
838

661
728
788
847
901

698
768
831
893
950

728 770 791
801 847 863
866 915 926
931 983 989
990 1045 1046

925
1009
1083
1155
1221

100,000
120,000
140,000
160,000
180,000

Income

Idaho

1055
1166
1264
1362
1451

416
637
748
843

452
692
811
913

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

691 831 927
750 900 1004
806 966 1076
857 1026 1143
906 1083 1206

1004
1086
1164
1235
1303

1068
1155
1237
1313
1385

1392
1514
1620
1725
1820

1479
1607
1719
1830
1931

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

971
1059
1136
1213
1283

1159
1262
1352
1442
1523

6.2500% Indiana3

6.0000% Illinois

304
470
555
627

100,000
120,000
140,000
160,000
180,000

1289
1403
1502
1600
1689

482 526
737 802
864 939
972 1056

1176
1301
1411
1521
1621

1250
1381
1498
1614
1721

357
591
713
819

257
421
506
580

297
484
581
665

384
623
746
852

222
376
457
528

254
429
522
602

275
464
564
651

1160
1254
1342
1424
1501

627
689
748
804
856

718 778 824 862
788 854 904 945
855 926 980 1024
917 993 1051 1098
977 1057 1118 1169

915
1003
1087
1165
1239

646
707
765
819
870

741 804 852 892 947
810 879 931 974 1035
876 950 1006 1053 1117
937 1016 1076 1125 1194
995 1078 1142 1194 1267

593
652
709
761
811

675
742
807
866
923

729 771 805 852
802 847 885 936
871 920 961 1017
935 988 1031 1091
997 1053 1099 1163

1602
1740
1860
1980
2087

926
1023
1108
1193
1271

1338
1474
1593
1713
1822

938
1032
1114
1196
1271

1056
1165
1261
1357
1445

1142
1259
1362
1466
1560

320
531
641
737

1208
1331
1440
1549
1648

1262
1391
1504
1618
1721

1072
1178
1271
1364
1448

323
526
631
722

1161
1275
1375
1476
1566

344
559
670
766

1229
1350
1455
1561
1656

360
585
701
802

1286
1411
1521
1631
1731

1087
1185
1270
1354
1430

5.5027% Kansas

335
556
671
771

301
500
605
695

1016
1108
1188
1267
1339

335
525
621
702

354
555
655
741

1145
1248
1337
1426
1506

381
596
703
795

1227
1337
1433
1527
1613

971 1094 1174 1236 1287 1358 1328 1546 1694 1808 1903 2035

6.7514% Iowa3

277
461
557
641

1364 878 999 1078
1497 970 1103 1190
1613 1051 1195 1289
1729 1133 1287 1389
1834 1207 1371 1479

291
491
596
688

1139
1257
1361
1466
1561

304
513
623
718

1188
1312
1420
1529
1628

322
543
659
760

1257
1388
1502
1617
1722

282
442
524
593

341
533
629
711

5.3000%
382
595
702
793

414
644
759
857

441
685
807
911

479
743
876
988

655 785 875 945 1004
712 852 949 1025 1089
765 915 1018 1100 1168
814 973 1083 1169 1241
861 1028 1144 1234 1310

1088
1179
1265
1344
1418

923
1007
1080
1153
1219

1101
1200
1286
1372
1449

1223
1333
1428
1523
1608

1320
1437
1540
1641
1733

1401
1525
1633
1741
1837

1516
1650
1766
1881
1985

1633 1928 2132 2293 2428 2620 1667 1889 2037 2150 2243 2372 1647 1872 2022 2136 2231 2362 1581 1794 1934 2040 2128 2249 1548 1834 2031 2185 2315 2499

Kentucky

6.0000% Louisiana

249
406
488
559

272
442
530
607

289
470
563
644

324
525
628
718

158
268
326
377

178
302
367
424

192
324
393
454

202
340
414
477

210
354
430
496

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

543
595
644
691
735

623
682
738
790
839

676
739
800
856
909

717 751 798
784 821 872
848 887 942
907 949 1008
963 1008 1070

510
560
609
654
697

535
589
640
687
732

556
612
664
714
761

120,000 793 905
140,000 873 996
160,000 944 1076
180,000 1016 1156
200,000 1080 1228
200,000 or more 1409 1596

980
1077
1163
1249
1327

100,000
120,000
140,000
160,000
180,000

1038
1140
1231
1321
1403

304
493
590
675

1085
1192
1286
1380
1466

1152
1265
1364
1463
1553

5.0000% Maryland3

4.0000% Maine

215
352
424
486

5.9945% Massachusetts

5.0000%

160
274
335
389

172
295
360
417

182
310
379
439

190
323
394
457

200
341
416
481

218
371
451
522

246
416
506
585

265
447
543
626

307
516
626
721

155
263
320
371

172
292
355
411

184
311
378
436

193
325
395
456

200
336
409
472

209
352
428
494

423
466
507
545
581

476
523
569
611
652

221
373
453
522
585
644
699
751
800

141
243
298
346
390
430
469
506
540

438
483
527
567
606

470
518
564
608
649

494
545
593
638
682

514
566
617
664
709

541
597
649
699
746

586
646
703
756
807

656
722
785
844
900

703 738 767 808
773 812 844 888
840 882 916 964
902 947 984 1035
962 1009 1048 1102

417
459
500
538
574

461
508
552
594
633

490
539
586
630
672

512
563
612
657
701

529
582
633
680
725

554
609
661
710
757

629
696
755
814
867

705 755 792 823 865
780 834 875 909 955
845 904 948 985 1035
911 974 1022 1061 1115
971 1038 1088 1130 1187

587
652
709
767
819

658
729
793
857
915

704 739 768 808 874
781 819 851 895 967
848 890 925 972 1050
916 962 998 1050 1133
978 1026 1066 1120 1209

974
1077
1168
1260
1343

622
689
748
807
861

686 727 759 784 819
759 804 839 867 905
823 872 910 940 981
888 941 981 1013 1058
947 1003 1045 1080 1127

1041
1150
1247
1344
1432

279
470
571
658

1092
1206
1307
1408
1500

291
489
594
685

1134
1252
1357
1461
1557

1192
1316
1426
1535
1635

1721 1817 1896 2006 1140 1274 1360 1426 1480 1554 1089 1214 1296 1358 1409 1479 1594 1766 1880 1967 2039 2140 1136 1247 1319 1374 1418 1479

Michigan

6.0000% Minnesota

6.5000% Mississippi

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

219
371
451
521

249
420
510
589

268
452
549
633

313
524
636
733

209
362
444
517

231
401
492
572

246
426
522
607

257
445
545
634

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

585
645
701
754
804

661
727
790
849
905

710 748 778 821
781 822 856 902
848 893 929 980
911 959 998 1052
972 1022 1063 1121

583
644
702
757
809

644
712
776
836
894

684
755
824
887
948

714 738 772 902
788 815 852 980
860 889 929 1053
926 957 1000 1121
990 1023 1069 1185

100,000
120,000
140,000
160,000
180,000

1124
1243
1348
1454
1550

240
401
486
560

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

Income

1060
1173
1273
1373
1464

297
502
611
706

1843 1903 1985 1264 1405 1496 1566 1623 1702 1567 1784 1928 2040 2131 2260

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

370
569
669
754

1101
1217
1319
1421
1514

283
479
583
674

120,000 871 980 1051
140,000 964 1084 1162
160,000 1046 1175 1260
180,000 1128 1267 1358
200,000 1203 1350 1447
200,000 or more 1585 1775 1899

283
476
578
667

1106
1222
1324
1427
1520

296
497
602
695

1150
1271
1377
1483
1580

1212 879 970 1030
1338 975 1077 1142
1450 1061 1171 1241
1561 1147 1265 1342
1663 1225 1351 1433
1994 2071 2178 1624 1790 1896

1074
1191
1295
1399
1494

266
460
564
655

1110
1231
1338
1446
1544

279
482
590
685

1160
1286
1398
1510
1612

387
609
720
816

1270
1386
1487
1588
1679

7.0000% Missouri

4.2250% Nebraska

5.5000%

463 515 555 589 637
724 803 865 917 990
856 949 1021 1082 1167
969 1073 1154 1222 1318

169
283
344
396

194
325
394
454

212
353
428
492

225
375
453
522

236
392
475
546

251
417
504
580

224
378
459
530

252
426
517
596

271
457
554
639

509
559
606
651
694

551
605
657
705
751

584
641
695
746
794

611
670
727
780
830

648
711
771
827
880

716 753 782 823
787 827 860 905
855 898 933 982
918 964 1002 1054
978 1027 1067 1122

1069
1161
1246
1326
1401

1183
1284
1378
1466
1548

1273
1380
1481
1575
1663

1347
1461
1567
1666
1759

1452
1574
1689
1794
1894

444
489
531
570
608

594
653
710
762
812

668
735
798
857
913

1500
1636
1754
1871
1977

1657
1805
1935
2063
2179

1780
1938
2077
2214
2338

1882
2049
2195
2339
2470

2026
2205
2361
2516
2656

657 750 811 858 897 951 879
726 828 895 947 989 1048 971
787 897 969 1025 1070 1134 1052
849 966 1043 1103 1152 1220 1133
904 1028 1111 1174 1226 1298 1206

987
1090
1180
1271
1353

1057
1167
1264
1361
1449

285
480
583
672

1110
1226
1327
1429
1521

297
499
606
698

1154
1273
1378
1484
1580

313
526
638
735

1213
1339
1449
1560
1660

1977 2042 2132 2131 2501 2754 2951 3115 3346 1187 1346 1452 1533 1600 1693 1579 1769 1893 1986 2063 2168

(Continued on next page)

A-11

Page 12 of 15 of 2008 Instructions for Schedules A & B (Form 1040) 8:49 - 14-NOV-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2008 Optional State and Certain Local Sales Tax Tables (Continued)
Income
At
least

But
less
than

Exemptions
1

2

3

4

290
487
591
682

306
513
622
717

Exemptions
5

Over
5

1

2

3

4
4

Nevada2

6.5000% New Jersey

Exemptions
5

Over
5

1

2

3

4

7.0000% New Mexico

Exemptions
5

Over
5

1

2

3

4

Exemptions
5

Over
5

1

2

3

4

5

3

5.0000% New York

4.0000% North Carolina

Over
5

4.3128%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

238
401
487
563

270
453
550
635

337
564
683
787

239
410
502
581

266
455
555
643

321
547
667
772

221
370
448
516

249
415
503
578

266
445
538
619

280
467
564
649

306
510
616
708

140
239
292
338

156
265
324
375

166
282
344
398

173
295
360
416

180
306
372
431

188
320
390
451

197
319
382
436

230
372
445
508

253
408
487
556

270
435
520
593

285
458
547
623

305
490
585
666

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

632
695
756
813
867

712 764 804 836 881
783 840 883 919 968
850 912 959 997 1051
914 980 1030 1071 1128
974 1044 1097 1141 1201

654
721
786
846
903

724 768 802 830 867
798 847 884 914 955
868 922 962 995 1039
934 992 1035 1070 1118
998 1058 1104 1142 1193

577
634
688
738
785

647
710
770
826
879

692
760
823
883
940

726 754 792
797 827 869
864 896 942
926 961 1009
986 1023 1074

380
419
456
490
523

421
464
505
543
579

447
493
536
577
615

467
515
560
602
642

484
533
579
623
664

506
557
606
651
695

485
530
573
612
650

564
616
665
710
753

617
673
727
776
823

658
718
774
827
877

692
755
814
869
921

739
806
869
928
983

567
628
682
736
785

627
694
754
813
867

666
737
800
863
920

696
770
835
900
960

719 752
796 832
863 902
931 973
992 1037

699 810 885
768 889 970
827 957 1044
887 1026 1119
941 1088 1186

942
1033
1112
1190
1262

990
1084
1167
1250
1324

1057
1157
1245
1333
1412

100,000
120,000
140,000
160,000
180,000

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

938
1038
1126
1214
1295

1054
1165
1262
1361
1450

1129
1247
1352
1456
1552

1187
1311
1420
1529
1629

319
535
648
747

1234
1362
1475
1589
1692

1299
1433
1552
1671
1779

979
1085
1178
1272
1357

1081
1197
1300
1403
1497

283
484
590
683

1147
1270
1378
1487
1586

296
505
616
714

1197
1325
1438
1551
1654

306
523
638
738

1237
1369
1486
1603
1709

1292 848 950 1015
1430 936 1047 1118
1552 1012 1132 1210
1674 1089 1218 1301
1785 1159 1295 1383

1064
1173
1268
1363
1450

291
485
586
674

1104
1217
1316
1414
1504

1159
1277
1381
1485
1579

1704 1904 2035 2134 2216 2328 1792 1973 2090 2178 2250 2348 1510 1686 1800 1886 1956 2052 1034 1141 1210 1262 1304 1362 1213 1398 1522 1618 1697 1808

North Dakota 5.0000% Ohio

5.5000% Oklahoma

4.5000% Pennsylvania

6.0000% Rhode Island

7.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

180
305
372
430

207
348
423
489

224
377
458
528

238
400
485
559

250
419
507
585

266
445
539
621

214
363
442
511

242
409
497
574

260
438
532
614

273
460
559
645

299
504
612
705

225
360
430
490

269
428
510
580

299
475
565
642

372
587
696
790

195
331
403
466

219
371
451
520

235
397
482
556

247
416
506
584

257
432
525
606

270
455
552
637

230
376
452
518

259
423
507
580

279
453
543
621

293
476
570
652

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

483
531
578
622
663

548
603
655
704
751

592
651
707
760
810

627
689
748
803
856

655
720
781
839
893

695
763
828
889
946

573
631
686
738
787

643
708
769
826
881

689
758
823
884
943

724 752 791
796 826 869
864 898 944
928 964 1013
989 1027 1080

544
594
641
685
726

643
700
755
805
853

711 765 810 874
774 832 881 950
834 896 948 1022
889 955 1010 1088
941 1011 1069 1151

523
576
626
673
718

584
642
698
750
800

624
686
745
801
854

654
719
781
839
895

679
747
811
871
928

713
784
851
914
974

577
632
683
731
777

646
706
763
816
867

691
755
816
872
926

725 753 792
792 823 865
856 888 934
915 950 998
971 1008 1059

719 813 876
795 898 968
863 974 1049
931 1050 1130
993 1119 1204

925
1022
1107
1192
1270

966
1066
1155
1244
1324

1168 781
1290 856
1397 922
1504 988
1602 1048

916
1003
1079
1155
1224

1234 777 866
1348 859 957
1448 932 1037
1547 1005 1118
1636 1071 1191

924
1021
1106
1192
1270

968
1069
1158
1248
1329

1004
1109
1201
1294
1378

1054 837 934
1163 920 1026
1260 994 1106
1357 1067 1187
1445 1133 1260

997
1094
1180
1265
1343

100,000
120,000
140,000
160,000
180,000

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

1023 852 954 1020
1129 942 1054 1127
1222 1021 1143 1221
1316 1101 1231 1316
1400 1174 1312 1402

1070
1182
1281
1380
1470

284
479
581
671

1111
1227
1330
1432
1526

1010
1105
1188
1271
1345

323
512
608
691

1084
1185
1274
1362
1441

343
543
645
732

1146
1253
1346
1438
1522

South Carolina

6.0000% South Dakota 4.0000% Tennessee

7.0000% Texas

227
385
468
541

256
433
527
609

318
536
651
752

223
353
419
476

266
420
497
564

295
465
551
624

318
501
592
671

353
567
677
772

417
667
795
905

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

608
669
727
782
834

684 733 771 801 843
752 806 848 881 927
818 876 921 957 1007
879 942 989 1028 1082
937 1004 1055 1096 1153

526
573
616
657
695

623
678
729
776
821

689
749
805
857
906

741 784 845 857
805 851 917 935
865 915 985 1009
920 973 1048 1078
973 1029 1107 1143

1005
1095
1180
1260
1335

1104
1203
1296
1383
1465

1182
1287
1386
1478
1566

1246
1357
1461
1558
1650

1336
1455
1566
1669
1767

1434
1570
1690
1809
1917

1573
1721
1851
1981
2098

1681
1839
1977
2115
2239

1770
1936
2081
2226
2356

1896
2073
2228
2382
2521

275
465
566
653

100,000
120,000
140,000
160,000
180,000

120,000 903 1014 1086
140,000 999 1121 1201
160,000 1083 1215 1301
180,000 1168 1310 1402
200,000 1245 1396 1494
200,000 or more 1636 1832 1959

Vermont

289
489
595
687

1141
1261
1367
1472
1569

301
509
619
714

1186
1310
1420
1529
1629

1247
1378
1493
1608
1713

745 879 971 1042
814 960 1059 1137
874 1030 1136 1219
934 1100 1213 1301
988 1163 1282 1375

337
530
627
710

1101
1201
1288
1374
1452

365
572
676
765

1185
1292
1385
1477
1561

1229
1347
1451
1554
1648

460 494 522 562
735 788 832 894
875 938 989 1062
996 1066 1125 1207

6.0000% Virginia

4.0000% Washington

156
262
317
366

166
278
336
387

173
290
351
404

179
299
362
417

188
313
378
435

158
255
305
348

187
299
357
407

206
329
392
447

222
353
420
478

234
372
443
504

252
400
475
540

254
431
525
606

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

373
410
446
479
510

410
450
489
525
559

434
476
517
555
591

452
496
538
578
615

467
512
556
596
635

487
535
580
622
662

387
423
456
488
518

452
493
531
568
602

495
540
582
622
659

530
577
622
664
703

558
608
655
699
740

598
651
701
748
792

681 768 825 868 904 953
750 845 907 955 994 1048
815 918 986 1037 1079 1138
876 987 1059 1114 1159 1222
934 1052 1129 1188 1236 1302

552
610
661
713
759

605
668
723
779
830

639
705
764
822
875

665
734
794
855
910

686
757
819
882
938

715
789
853
918
977

558
613
661
709
753

647
710
765
820
870

708 756 795 850
776 827 870 930
836 890 936 1000
895 953 1002 1070
949 1010 1062 1133

200,000 or more

Income

996 1086 1145 1189 1225 1275

Wyoming
152
259
316
366

172
293
357
413

185
315
383
443

195
331
403
466

203
345
420
485

215
364
443
511

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

412
454
494
531
567

464
511
556
597
637

498
548
596
641
683

524
576
627
674
719

545
600
652
701
747

574
632
687
738
787

614
680
738
797
850

690 740 778 809 852
764 819 861 895 942
829 888 933 970 1021
894 958 1006 1046 1100
953 1021 1073 1115 1173

120,000
140,000
160,000
180,000
200,000

200,000 or more

281
476
578
668

6.2500% Utah
304
515
625
722

322
544
661
763

337
569
691
797

4.6500%

357
603
732
844

224
363
434
496

263
424
507
578

289
465
555
633

309
497
593
675

657 749 809 856 894 946
723 824 890 941 982 1040
786 895 967 1022 1067 1129
844 961 1038 1097 1146 1213
900 1025 1107 1169 1221 1292

552
603
651
696
739

642
701
756
808
857

703
767
827
883
936

750 789 843
818 860 919
882 927 991
941 990 1057
998 1049 1120

1397 795 922
1542 873 1011
1670 941 1089
1798 1009 1167
1915 1071 1237

1007
1103
1188
1272
1349

974
1077
1167
1258
1340

1109
1225
1327
1430
1523

1197
1322
1432
1543
1643

1265
1397
1513
1629
1735

1320
1458
1579
1700
1810

1073
1175
1265
1354
1435

326
523
624
711

1127
1234
1328
1422
1507

349
560
667
760

1203
1318
1417
1517
1607

1012
1119
1214
1309
1395

288
487
593
684

1139
1259
1365
1471
1567

310
524
637
736

1222
1350
1463
1577
1680

327
552
671
774

1285
1420
1538
1657
1765

341
575
699
806

1337
1476
1600
1723
1835

360
607
737
850

1408
1555
1684
1814
1932

289
470
563
643

338
546
653
746

6.0000% Wisconsin

5.0000%

370
597
714
815

395
637
761
868

416
670
800
912

445
716
854
973

203
343
417
482

229
387
470
542

246
415
504
582

259
437
530
611

270
454
551
636

716 829 905
782 905 988
845 978 1066
904 1045 1139
959 1108 1208

964
1052
1135
1212
1285

1012
1104
1191
1272
1349

1080
1178
1271
1356
1438

540
594
645
693
739

608
668
726
779
830

652
716
778
835
890

685
753
817
878
935

712 750
783 824
850 894
912 960
972 1022

1381
1514
1630
1746
1851

1450
1588
1710
1831
1941

1545 799 898
1692 883 991
1821 956 1074
1950 1030 1156
2066 1097 1231

962
1062
1150
1238
1318

1011
1116
1208
1300
1384

1033
1134
1223
1312
1392

1192
1308
1409
1511
1602

1299
1424
1534
1644
1743

1050
1159
1255
1351
1438

284
479
580
669

1105
1219
1320
1421
1512

974 1120 1219 1296 1360 1450 1834 2057 2202 2313 2404 2529 1797 2062 2239 2376 2490 2648 1436 1610 1723 1809 1878 1974

4.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

246
417
507
586

6.5000% West Virginia

141
237
288
333

120,000
140,000
160,000
180,000
200,000

1139
1249
1346
1442
1530

2056 2134 2243 1258 1477 1625 1741 1837 1973 2118 2456 2684 2861 3008 3214 1756 1994 2150 2269 2367 2502 1381 1591 1731 1841 1931 2057

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1084
1190
1282
1374
1458

322
522
624
712

1309 1470 1579 1663 1733 1830 1542 1721 1838 1926 1998 2097 1349 1568 1719 1839 1939 2081 1408 1563 1664 1741 1804 1890 1466 1627 1732 1811 1877 1967

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

Income

1045
1147
1236
1325
1406

305
495
593
677

Note. Alaska does not have a state sales tax. Alaska residents should follow the instructions on the next page to
determine their local sales tax amount.
The California table includes the 1% uniform local sales tax rate in additon to the 6.25% state sales tax rate.
The Nevada table includes the 2.25% uniform local sales tax rate in addition to the 4.25% state sales tax rate.
3 The rates for Indiana, Iowa, Maryland, and North Carolina increased during 2008, so the rate given is averaged over the year.
4 Residents of Salem County should deduct only half of the amount in the state table.
1
2

1120 1255 1342 1409 1464 1539

A-12

Page 13 of 15 of 2008 Instructions for Schedules A & B (Form 1040) 8:49 - 14-NOV-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Which Optional Local Sales Tax Table Should I Use?
IF you live in
the state of...

AND you live in...

THEN use
Local Table...

Alaska

Any locality

C

Arizona

Glendale, Mesa, Phoenix, or Tucson

A
C

Arkansas

Chandler, Gilbert, Peoria, Scottsdale, Tempe, Yuma, or any other locality
Any locality

California

B
A

Los Angeles County
Aurora, Fort Collins, Greeley, Jefferson County, Lakewood, or Longmont

Colorado

B
C

Arvada, City of Boulder, Thornton, or Westminster
Adams County, Arapahoe County, Boulder County, Centennial, Colorado Springs, Denver City/Denver
County, El Paso County, Larimer County, City of Pueblo, Pueblo County, or any other locality

A

Any locality
Any locality
Any other locality

B
A
B

Ascension Parish, Bossier Parish, Caddo Parish, Calcasieu Parish, East Baton Rouge Parish, Iberia Parish,
Jefferson Parish, Lafayette Parish, Lafourche Parish, Livingston Parish, Orleans Parish, Ouachita Parish,
Rapides Parish, St. Bernard Parish, St. Landry Parish, St. Tammany Parish, Tanqipahoa Parish, or
Terrebonne Parish

C

Missouri

Saint Charles County or Saint Louis County
Saint Louis City or any other locality

A
B

New York

New York City, or one of the following counties: Albany, Allegany, Cattaraugus, Cayuga, Chemung, Clinton,
Cortland, Erie, Essex, Franklin, Fulton, Genesee, Herkimer, Jefferson, Lewis, Livingston, Monroe,
Montgomery, Nassau, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam,
Rensselaer, Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Seneca, Steuben, Suffolk,
Sullivan, Tompkins, Ulster, Warren, Washington, Westchester, Wyoming, or Yates
Any other locality
Any locality

A

South Carolina

Cherokee, Chesterfield, Darlington, Jasper, Lee, or Lexington
Any other locality

A
B

Tennessee
Utah

Any locality
Any locality

B
A

Virginia

Any locality

B

Georgia
Illinois
Louisiana

North Carolina

D
A

2008 Optional Local Sales Tax Tables for Certain Local Jurisdictions
(Based on a local sales tax rate of 1 percent)
Income
At
least

But
less
than

Local Table A

Local Table B

Local Table C

Exemptions

Exemptions

Exemptions

2

Over
5

1

2

42 46 49 52 55 48 57 64 69 74 80 54 65 72 77 82 89
69 75 80 84 90 75 89 99 107 114 123 85 101 112 121 128 138
83 90 96 101 107 88 105 117 126 134 145 101 120 132 142 151 162
95 103 110 115 122 100 119 132 143 151 164 114 135 150 161 170 183

35
60
73
85

39
66
81
94

42 43 45 47
71 74 77 80
86 90 93 98
100 104 108 113

4

5

1

2

3

4

5

Over
5

Exemptions

1

3

Over
5

Local Table D

1

2

3

4

5

3

4

5

Over
5

$0
20,000
30,000
40,000

$20,000
30,000
40,000
50,000

37
60
72
83

50,000
60,000
70,000
80,000
90,000

60,000
70,000
80,000
90,000
100,000

92
101
109
117
125

106
116
126
134
143

115
126
136
146
155

122
134
144
155
164

128
140
151
162
172

136
149
161
172
182

111
120
129
138
146

132
143
153
163
172

146
158
170
181
191

157
170
183
194
205

167
181
194
206
217

180
195
209
222
235

127
138
148
158
167

150
163
175
186
197

165
179
193
205
217

178
193
207
220
233

188
204
219
233
246

202
219
235
250
264

95
105
114
123
131

105
116
126
136
145

112
123
134
144
154

117
129
140
151
161

121
133
145
156
166

127
139
152
163
174

100,000
120,000
140,000
160,000
180,000

120,000
140,000
160,000
180,000
200,000

135
148
160
172
183

154
169
183
196
209

167
183
198
212
226

177
194
210
225
239

185
203
219
235
250

196
216
233
249
265

156
170
183
196
207

185
201
216
230
244

204
222
238
254
269

220
239
256
273
288

232
253
271
289
305

251
273
292
311
328

179
195
210
224
237

211
230
246
263
278

232
253
271
290
306

249
271
291
310
328

263
286
307
327
346

283
308
330
352
371

142
157
171
184
196

157
174
189
203
217

167
184
200
216
230

174
193
209
225
240

180
199
216
233
248

188
208
226
243
259

200,000 or more

239 271 292 309 323 342 264 309 340 365 385 414 302 353 388 415 437 469 259 285 303 316 326 341

A-13

Page 14 of 15 of 2008 Instructions for Schedules A & B (Form 1040) 8:49 - 14-NOV-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for
Schedule B,
Interest and
Ordinary
Dividends

Use Schedule B (Form 1040) if any of the following applies.
• You had over $1,500 of taxable interest.
• Any of the Special Rules listed in the instructions for line 1 apply to you.
• You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued
after 1989.
• You had over $1,500 of ordinary dividends.
• You received ordinary dividends as a nominee.
• You had a foreign account or you received a distribution from, or were a grantor of, or
transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and
trusts.

You can list more than one
payer on each entry space for
lines 1 and 5, but be sure to
clearly show the amount paid
next to the payer’s name. Add the separate
amounts paid by the payers listed on an
entry space and enter the total in the
“Amount” column. If you still need more
space, attach separate statements that are
the same size as the printed schedule. Use
the same format as lines 1 and 5, but show
your totals on Schedule B. Be sure to put
your name and social security number
(SSN) on the statements and attach them at
the end of your return.

total on line 1. Do this even if you later
distributed some or all of this income to
others. Under your last entry on line 1, put a
subtotal of all interest listed on line 1. Below this subtotal, enter “Nominee Distribution” and show the total interest you
received as a nominee. Subtract this
amount from the subtotal and enter the result on line 2.

TIP

Part I. Interest
Line 1
Interest
Report on line 1 all of your taxable interest.
Taxable interest should be shown on your
Forms 1099-INT, Forms 1099-OID, or
substitute statements. Include interest from
series EE, H, HH, and I U.S. savings bonds.
List each payer’s name and show the
amount. Do not report on this line any
tax-exempt interest from box 8 or box 9 of
Form 1099-INT. Instead, report the amount
from box 8 on line 8b of Form 1040. If an
amount is shown in box 9 of Form
1099-INT, you generally must report it on
line 12 of Form 6251. See the instructions
for Form 6251 for more details.

If you received interest as a
nominee, you must give the actual owner a Form 1099-INT
unless the owner is your
spouse. You must also file a Form 1096 and
a Form 1099-INT with the IRS. For more
details, see the General Instructions for
Forms 1099, 1098, 5498, and W-2G and
the Instructions for Forms 1099-INT and
1099-OID.

TIP

Accrued Interest
When you buy bonds between interest payment dates and pay accrued interest to the
seller, this interest is taxable to the seller. If
you received a Form 1099 for interest as a
purchaser of a bond with accrued interest,
follow the rules earlier under Nominees to
see how to report the accrued interest on
Schedule B. But identify the amount to be
subtracted as “Accrued Interest.”

Original Issue Discount (OID)

Special Rules

If you are reporting OID in an amount less
than the amount shown on Form
1099-OID, follow the rules earlier under
Nominees to see how to report the OID on
Schedule B. But identify the amount to be
subtracted as “OID Adjustment.”

Seller-Financed Mortgages

Amortizable Bond Premium

If you sold your home or other property and
the buyer used the property as a personal
residence, list first any interest the buyer
paid you on a mortgage or other form of
seller financing. Be sure to show the
buyer’s name, address, and SSN. You must
also let the buyer know your SSN. If you do
not show the buyer’s name, address, and
SSN, or let the buyer know your SSN, you
may have to pay a $50 penalty.

If you are reducing your interest income on
a bond by the amount of amortizable bond
premium, follow the rules earlier under
Nominees to see how to report the interest
on Schedule B. But identify the amount to
be subtracted as “ABP Adjustment.”

Nominees
If you received a Form 1099-INT that includes interest you received as a nominee
(that is, in your name, but the interest actually belongs to someone else), report the

Line 3
Excludable Interest on
Series EE and I U.S. Savings
Bonds Issued After 1989
If, during 2008, you cashed series EE or I
U.S. savings bonds issued after 1989 and

B-1

you paid qualified higher education expenses for yourself, your spouse, or your
dependents, you may be able to exclude
part or all of the interest on those bonds.
See Form 8815 for details.

Part II. Ordinary
Dividends
You may have to file Form
5471 if, in 2008, you were an
officer or director of a foreign
corporation. You may also have
to file Form 5471 if, in 2008, you owned
10% or more of the total (a) value of a
foreign corporation’s stock, or (b) combined voting power of all classes of a foreign corporation’s stock with voting rights.
For details, see Form 5471 and its instructions.

TIP

Line 5
Ordinary Dividends
Report on line 5 all of your ordinary dividends. This amount should be shown in box
1a of your Forms 1099-DIV or substitute
statements. List each payer’s name and
show the amount.

Nominees
If you received a Form 1099-DIV that includes ordinary dividends you received as a
nominee (that is, in your name, but the ordinary dividends actually belong to someone
else), report the total on line 5. Do this even
if you later distributed some or all of this
income to others. Under your last entry on
line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal,
enter “Nominee Distribution” and show the
total ordinary dividends you received as a
nominee. Subtract this amount from the
subtotal and enter the result on line 6.

Page 15 of 15 of 2008 Instructions for Schedules A & B (Form 1040) 8:49 - 14-NOV-2008
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

If you received dividends as a
nominee, you must give the actual owner a Form 1099-DIV
unless the owner is your
spouse. You must also file a Form 1096 and
a Form 1099-DIV with the IRS. For more
details, see the General Instructions for
Forms 1099, 1098, 5498, and W-2G and
the Instructions for Form 1099-DIV.

TIP

Part III. Foreign
Accounts and Trusts
Lines 7a and 7b
Foreign Accounts
Line 7a
Check the “Yes” box on line 7a if either (1)
or (2) below applies.
1. You own more than 50% of the stock
in any corporation that owns one or more
foreign bank accounts.
2. At any time during 2008 you had an
interest in or signature or other authority
over a financial account in a foreign country (such as a bank account, securities account, or other financial account).

TIP

For line 7a, item (2) does not
apply to foreign securities held
in a U.S. securities account.

• The accounts were with a U.S. military banking facility operated by a U.S.
financial institution.
• You were an officer or employee of a
commercial bank that is supervised by the
Comptroller of the Currency, the Board of
Governors of the Federal Reserve System,
or the Federal Deposit Insurance Corporation; the account was in your employer’s
name; and you did not have a personal financial interest in the account.
• You were an officer or employee of a
domestic corporation with securities listed
on national securities exchanges or with
assets of more than $10 million and 500 or
more shareholders of record; the account
was in your employer’s name; you did not
have a personal financial interest in the account; and the corporation’s chief financial
officer has given you written notice that the
corporation has filed a current report that
includes the account.
See Form TD F 90-22.1 to find out if
you are considered to have an interest in or
signature or other authority over a financial
account in a foreign country (such as a bank
account, securities account, or other financial account). You can get Form TD F
90-22.1 by visiting the IRS website at
www.irs.gov/pub/irs-pdf/f90221.pdf.
If you checked the “Yes” box on line 7a,
file Form TD F 90-22.1 by June 30, 2009,
with the Department of the Treasury at the
address shown on that form. Do not attach
it to Form 1040.
If you are required to file Form
TD F 90-22.1 but do not do so,
you may have to pay a penalty
of up to $10,000 (more in some

Exceptions. Check the “No” box if any of

the following applies to you.
• The combined value of the accounts
was $10,000 or less during the whole year.

cases).

B-2
Printed on recycled paper

Line 7b
If you checked the “Yes” box on line 7a,
enter the name of the foreign country or
countries in the space provided on line 7b.
Attach a separate statement if you need
more space.

Line 8
Foreign Trusts
If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash
or marketable securities generally is considered to be a distribution. See Form 3520
for details.
If you were the grantor of, or transferor
to, a foreign trust that existed during 2008,
you may have to file Form 3520.
Do not attach Form 3520 to Form 1040.
Instead, file it at the address shown in its
instructions.
If you were treated as the owner of a
foreign trust under the grantor trust rules,
you are also responsible for ensuring that
the foreign trust files Form 3520-A. Form
3520-A is due on March 16, 2009, for a
calendar year trust. See the instructions for
Form 3520-A for more details.