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Internal Revenue Service
2013 Instructions for Schedule J
Income
Averaging for
Farmers and
Fishermen
Use Schedule J (Form 1040) to elect to figure your 2013 income tax by averaging,
over the previous 3 years (base years), all or part of your 2013 taxable income from
your trade or business of farming or fishing. This election may give you a lower tax if
your 2013 income from farming or fishing is high and your taxable income for one or
more of the 3 prior years was low.
In order to qualify for this election, you are not required to have been in the business of farming or fishing during any of the base years.
You may elect to average farming or fishing income even if your filing status was
not the same in the election year and the base years.
This election does not apply when figuring your alternative minimum tax on Form
6251. Also, you do not have to recompute, because of this election, the tax liability of
any minor child who was required to use your tax rates in the prior years.
Section references are to the Internal
Revenue Code unless otherwise noted.
tural or horticultural commodity. This
includes:
1. Operating a nursery or sod farm;
2. Raising or harvesting of trees
bearing fruits, nuts, or other crops;
3. Raising ornamental trees (but not
evergreen trees that are more than 6
years old when severed from the roots);
4. Raising, shearing, feeding, caring
for, training, and managing animals; and
5. Leasing land to a tenant engaged
in a farming business, but only if the
lease payments are (a) based on a share
of the tenant's production (not a fixed
amount), and (b) determined under a
written agreement entered into before
the tenant begins significant activities on
the land.
Future Developments
For the latest information about developments related to Schedule J (Form
1040) and its instructions, such as legislation enacted after they were published,
go to www.irs.gov/schedulej.
General Instructions
Prior Year Tax Returns
You may need copies of your original or
amended income tax returns for 2010,
2011, and 2012 to figure your tax on
Schedule J.
If you need copies of your tax returns, use Form 4506. There is a fee for
each return requested. See Form 4506
for the fee amount. If your main home,
principal place of business, or tax records are located in a federally declared
disaster area, this fee will be waived. If
you want a free transcript of your tax return or account, use Form 4506-T. See
your Form 1040 instructions to find out
how to get these forms.
Keep a copy of your 2013 income tax
return to use for income averaging in
2014, 2015, or 2016.
Definitions
Farming business. A farming business
is the trade or business of cultivating
land or raising or harvesting any agricul-
A farming business does not include:
Contract harvesting of an agricultural or horticultural commodity grown
or raised by someone else, or
Merely buying or reselling plants
or animals grown or raised by someone
else.
Fishing business. A fishing business is
the trade or business of fishing in which
the fish harvested, either in whole or in
part, are intended to enter commerce or
enter commerce through sale, barter, or
trade. This includes:
1. The catching, taking, or harvesting of fish;
2. The attempted catching, taking,
or harvesting of fish;
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Sep 11, 2013
Cat. No. 25514J
3. Any other activity which can reasonably be expected to result in the
catching, taking, or harvesting of fish;
4. Any operations at sea in support
of, or in preparation for, any activity described in (1) through (3) above;
5. Leasing a fishing vessel, but only
if the lease payments are (a) based on a
share of the catch (or a share of the proceeds from the sale of the catch) from
the lessee's use of the vessel in a fishing
business (not a fixed payment), and (b)
determined under a written lease entered
into before the lessee begins any significant fishing activities resulting in the
catch; and
6. Compensation as a crew member
on a vessel engaged in a fishing business, but only if the compensation is
based on a share of the catch (or a share
of the proceeds from the sale of the
catch).
The word fish means finfish, mollusks, crustaceans, and all other forms of
marine animal and plant life other than
marine mammals and birds.
A fishing business does not include
any scientific research activity conducted by a scientific research vessel.
Settlement from Exxon Valdez liti
gation. You will be treated as engaged
in a fishing business with respect to any
qualified settlement income you received if either of the following applies.
1. You were a plaintiff in the civil
action In re Exxon Valdez, No.
89-095-CV (HRH) (Consolidated) (D.
Alaska); or
2. All of the following apply.
a. You were a beneficiary of a
plaintiff described in (1) above,
b. You acquired the right to receive
qualified settlement income from that
plaintiff, and
c. You were the spouse or an immediate relative of that plaintiff.
Qualified settlement income is any
taxable interest and punitive damage
awards you received (whether as lump
sums or periodic payments) in connection with the Exxon Valdez civil action
described above. Qualified settlement
income includes all such awards, whether received before or after the judgment
and whether related to a settlement or a
judgment.
Additional Information
See Pub. 225 and Regulations section
1.1301-1 for more information.
Specific Instructions
Line 2a
Elected Farm Income
To figure your elected farm income, first
figure your taxable income from farming or fishing. This includes all income,
gains, losses, and deductions attributable
to your farming or fishing business. If
you conduct both farming and fishing
businesses, you must figure your elected
farm income by combining income,
gains, losses, and deductions attributable
to your farming and fishing businesses.
Elected farm income also includes
any gain or loss from the sale or other
disposition of property regularly used in
your farming or fishing business for a
substantial period of time. However, if
such gain or loss is realized after cessation of the farming or fishing business,
the gain or loss is treated as attributable
to a farming or fishing business only if
the property is sold within a reasonable
time after cessation of the farming or
fishing business. A sale or other disposition within 1 year of the cessation is
considered to be within a reasonable
time.
Elected farm income does not include
income, gain, or loss from the sale or
other disposition of land or from the sale
of development rights, grazing rights,
and other similar rights.
You should find your income, gains,
losses, and deductions from farming or
fishing reported on different tax forms,
such as:
2013 Form 1040, line 7, or Form
1040NR, line 8, income from wages and
other compensation you received (a) as a
shareholder in an S corporation engaged
in a farming or fishing business or (b) as
a crew member on a vessel engaged in a
fishing business (but see Fishing busi
ness, earlier);
2013 Form 1040, line 21, or Form
1040NR, line 21, income from Exxon
Valdez litigation;
2013 Form 1040, line 27, or Form
1040NR, line 27, deductible part of
self-employment tax, but only to the extent that deduction is attributable to your
farming or fishing business;
2013 Form 1040, line 43, or Form
1040NR, line 41, CCF reduction, except
to the extent that any earnings (without
regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries
of the United States or in the foreign or
domestic commerce of the United States
are not attributable to your fishing business;
Schedule C or C-EZ;
Schedule D;
Schedule E, Part II;
Schedule F;
Form 4797;
Form 4835;
Form 8903, domestic production
activities deduction, but only to the extent that deduction is attributable to your
farming or fishing business; and
Form 8949.
Your elected farm income is the
amount of your taxable income from
farming or fishing that you elect to include on line 2a.
You do not have to include all
of your taxable income from
farming or fishing on line 2a.
It may be to your advantage to include
less than the entire amount, depending
on how the amount you include on
line 2a affects your tax bracket for the
current and prior 3 tax years.
TIP
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If you received certain subsidies in
2013, your elected farm income cannot
include excess farm losses. See the Instructions for Schedule F (Form 1040).
Your elected farm income cannot exceed your taxable income.
Lines 2b and 2c
Complete lines 2b and 2c if the amount
of your elected farm income on line 2a
includes net capital gain. Net capital
gain is the excess, if any, of net
long-term capital gain over net
short-term capital loss.
Line 2b. Enter on line 2b the portion of
your elected farm income on line 2a
treated as a net capital gain. The amount
you enter on line 2b cannot exceed the
smaller of your total net capital gain or
the net capital gain attributable to your
farming or fishing business.
Line 2c. Enter on line 2c the smaller of
line 2b or the unrecaptured section 1250
gain attributable to your farming or fishing business, if any.
Line 4
Figure the tax on the amount on line 3
using:
The 2013 Tax Table, Tax Computation Worksheet, or Qualified Dividends and Capital Gain Tax Worksheet
from the 2013 Instructions for Form
1040 or Form 1040NR;
The 2013 Foreign Earned Income
Tax Worksheet from the 2013 Instructions for Form 1040; or
The Schedule D Tax Worksheet in
the 2013 Instructions for Schedule D.
Enter the tax on line 4.
Line 5
If you used Schedule J to figure your tax
for:
2012 (that is, you entered the
amount from the 2012 Schedule J,
line 23, on line 44 of your 2012 Form
1040, on line 42 of your 2012 Form
1040NR, or on Form 1040X for 2012),
enter on line 5 the amount from your
2012 Schedule J, line 11.
2011 but not 2012, enter on line 5
the amount from your 2011 Schedule J,
line 15.
2010 but not 2011 or 2012, enter
on line 5 the amount from your 2010
Schedule J, line 3.
If you figured your tax for 2010,
2011, and 2012 without using Schedule J, enter on line 5 the taxable income
from your 2010 tax return (or as previously adjusted by the IRS, or corrected
on an amended return). But if that
amount is zero or less, complete the
2010 Taxable Income Worksheet to figure the amount to enter on line 5.
If you did not file a tax return for
2010, use the amount you would have
reported as your taxable income had you
been required to file a tax return. Be
sure to keep all your records for 2010
for at least 3 years after April 15, 2014
(or the date you file your 2013 tax return, if later).
Instructions for 2010 Taxable
Income Worksheet
Line 2. Any net capital loss deduction
on your 2010 Schedule D, line 21, is not
allowed for income averaging purposes
to the extent it did not reduce your capital loss carryover to 2011. This could
happen if the taxable income before subtracting exemptions—shown on your
2010 Form 1040, line 41, or your 2010
Form 1040NR, line 39 (or as previously
adjusted)—was less than zero. Enter on
line 2 the amount by which your 2010
capital loss carryover to 2011 (the sum
of your short- and long-term capital loss
carryovers) exceeds the excess of the
loss on your 2010 Schedule D, line 16,
over the loss on your 2010 Schedule D,
line 21. If you had any Net Operating
Loss (NOL) carrybacks to 2010, be sure
you refigured your 2010 capital loss carryover to 2011.
Line 3. If you had an NOL for 2010,
enter the amount of that NOL from
line 25 of the 2010 Form 1045, Schedule A, you filed with Form 1045 or
Form 1040X. If you did not have an
NOL for 2010, enter the portion, if any,
of the NOL carryovers and carrybacks to
2010 that were not used in 2010 and
were carried to years after 2010.
Example. John Farmington, who is
single, did not use income averaging for
2010, 2011, or 2012. For 2013, John has
$18,000 of elected farm income on
Schedule J, line 2a. The taxable income
before subtracting exemptions on his
2010 Form 1040, line 41, is $4,500. A
deduction for exemptions of $3,650 is
shown on line 42, and line 43, taxable
income, is $850. However, John had a
$21,100 NOL for 2011, $9,000 of which
was remaining to carry to 2010 after the
NOL was carried back to 2009. To complete line 1 of the 2010 Taxable Income
Worksheet, John combines the $9,000
NOL deduction with the $850 from his
2010 Form 1040, line 43. The result is a
negative $8,150, John's 2010 taxable income, which he enters as a positive
amount on line 1 of the 2010 Taxable
Income Worksheet.
2010 Taxable Income Worksheet—Line 5
When John filed his 2010 tax return,
he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was
also entered on Form 1040, line 13), a
$7,000 loss on Schedule D, line 16, and
a $4,000 capital loss carryover to 2011.
However, when John carried back the
2011 NOL ($9,000 of which was carried
to 2010), he refigured his 2010 capital
loss carryover to 2011 as $7,000. John
adds the $3,000 from Schedule D,
line 21, and the $7,000 carryover. He
subtracts from the $10,000 result the
$7,000 loss on his Schedule D, line 16,
and enters $3,000 on line 2 of the worksheet.
John had $850 of taxable income in
2010 that reduced the 2011 NOL carryback. The $3,650 exemption deduction
and $3,000 net capital loss deduction also reduced the amount of the 2011 NOL
carryback. As a result, only $1,500 was
available to carry to 2012 and later
years, as shown on line 10 of his 2011
Form 1045, Schedule B. John enters the
$1,500 on line 3 of the worksheet, and
$4,500 ($1,500 plus the $3,000 line 2
amount) on line 4. He then subtracts the
$4,500 from the $8,150 on line 1 and enters the result, $3,650, on line 5 of the
worksheet. He enters a negative $3,650
on Schedule J, line 5. He combines that
amount with the $6,000 on Schedule J,
line 6, and enters $2,350 on Schedule J,
line 7.
Keep for Your Records
Complete this worksheet if you did not use Schedule J to figure your tax for 2011 and 2012 and your 2010 taxable income was zero or
less. See the instructions above before completing this worksheet for line 5.
1. Figure the taxable income from your 2010 tax return (or as previously adjusted) without limiting it to
zero. If you had an NOL for 2010, do not include any NOL carryovers or carrybacks to 2010. Enter the
result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. If there is a loss on your 2010 Schedule D, line 21, add that loss (as a positive
amount) and your 2010 capital loss carryover to 2011. Subtract from that sum the
amount of the loss on your 2010 Schedule D, line 16, and enter the result . . . . . . . . .
2.
3. If you had an NOL for 2010, enter it as a positive amount. Otherwise, enter as a
positive amount the portion, if any, of the NOL carryovers and carrybacks to 2010
that were not used in 2010 and were carried to years after 2010 . . . . . . . . . . . . . . . . .
3.
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 5 . . . . . . . . . . . . . . .
5.
J-3
1.
Line 8
If line 7 is zero, enter -0- on line 8. Otherwise, figure the tax on the amount on
line 7 using:
The 2010 Tax Rate Schedules below,
The 2010 Qualified Dividends and
Capital Gain Tax Worksheet, later,
The 2010 Schedule D Tax Worksheet in the 2010 Schedule D instructions (but use the 2010 Tax Rate Schedules below when figuring the tax on
lines 34 and 36 of the Schedule D Tax
Worksheet), or
The 2010 Foreign Earned Income
Tax Worksheet, later.
If your elected farm income includes
net capital gain, you must use the 2010
Schedule D Tax Worksheet to figure the
tax on the amount on line 7. However, if
you filed Form 2555 or 2555-EZ for
2010, you must first complete the 2010
Foreign Earned Income Tax Worksheet,
and then use the 2010 Schedule D Tax
Worksheet to figure the tax on the
amount on line 3 of that worksheet.
When completing the Schedule D
Tax Worksheet, you must allocate 1/3 of
the amount on line 2b (and 1/3 of the
amount on line 2c, if any) to 2010. If for
2010 you had a capital loss that resulted
in a capital loss carryover to 2011, do
not reduce the elected farm income allocated to 2010 by any part of the carryover.
2010 Tax Rate Schedules—Line 8
Schedule X—Use if your 2010 filing status was Single or you
checked filing status box 1 or 2 on Form 1040NR
Schedule Y-2—Use if your 2010 filing status was Married filing
separately or you checked filing status box 3, 4, or 5 on Form 1040NR
If
Schedule J,
line 7, is:
Over—
If
Schedule J,
line 7, is:
Over—
But not
over—
$0 $8,375
8,375 34,000
34,000 82,400
82,400 171,850
171,850 373,650
373,650 .............
Enter on
Schedule J,
line 8
...........
$837.50 +
4,681.25 +
16,781.25 +
41,827.25 +
108,421.25+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
8,375
34,000
82,400
171,850
373,650
But not
over—
$0 $8,375
8,375 34,000
34,000 68,650
68,650 104,625
104,625 186,825
186,825 .............
Enter on
Schedule J,
line 8
...........
$837.50 +
4,681.25 +
13,343.75+
23,416.75+
50,542.75+
10%
15%
25%
28%
33%
35%
of the
amount
over—
$0
8,375
34,000
68,650
104,625
186,825
Schedule Y-1—Use if your 2010 filing status was Married filing
jointly or Qualifying widow(er) or you checked filing status box 6
on Form 1040NR
Schedule Z—Use if your 2010 filing status was Head of household
If
Schedule J,
line 7, is:
Over—
If
Schedule J,
line 7, is:
Over—
$0
16,750
68,000
137,300
209,250
373,650
But not
over—
$16,750
68,000
137,300
209,250
373,650
............
Enter on
Schedule J,
line 8
...........
$1,675.00 +
9,362.50 +
26,687.50 +
46,833.50 +
101,085.50+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
16,750
68,000
137,300
209,250
373,650
$0
11,950
45,550
117,650
190,550
373,650
J-4
But not
over—
$11,950
45,550
117,650
190,550
373,650
.............
Enter on
Schedule J,
line 8
...........
$1,195.00+
6,235.00 +
24,260.00+
44,672.00+
105,095.00+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
11,950
45,550
117,650
190,550
373,650
2010 Qualified Dividends and Capital Gain Tax
Worksheet—Line 8
Keep for Your Records
Use this worksheet only if both of the following apply.
Your elected farm income on your 2013 Schedule J, line 2a, does not include any net capital gain.
You (a) entered qualified dividends on your 2010 Form 1040, line 9b (or your 2010 Form 1040A, line 9b, or 2010 Form 1040NR,
line 10b); (b) entered capital gain distributions directly on your 2010 Form 1040, line 13 (or your 2010 Form 1040A, line 10, or 2010 Form
1040NR, line 14) and were not required to file Schedule D; or (c) filed Schedule D in 2010 and you answered “Yes” on lines 17 and 20 of
that Schedule D.
1.
Amount from your 2013 Schedule J, line 7. If for 2010 you filed Form 2555 or 2555-EZ,
enter the amount from line 3 of the 2010 Foreign Earned Income Tax Worksheet . . . . .
2.
Amount from your 2010 Form 1040, line 9b* (or your 2010
Form 1040A, line 9b, or 2010 Form 1040NR, line 10b) . . . . .
3.
1.
2.
Did you file Schedule D in 2010?*
Yes. Enter the smaller of line 15 or 16 of your
2010 Schedule D, but do not enter less
than -0No. Enter the amount from your 2010 Form
1040, line 13 (or your 2010 Form 1040A,
line 10, or 2010 Form 1040NR, line 14)
.....
3.
4.
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5.
Amount, if any, from your 2010 Form 4952, line 4g
5.
6.
Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7.
Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8.
Enter one of the of the following three amounts depending on your filing status:
.......
$34,000 if single or married filing separately, or if you checked
filing status box 1, 2, 3, 4 or 5 on Form 1040NR;
$68,000 if married filing jointly or qualifying widow(er) or if
you checked filing status box 6 on Form 1040NR;
...........
8.
$45,550 if head of household.
9.
Enter the smaller of line 1 or line 8 . . . .
9.
10.
Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
11.
Subtract line 10 from line 9. This amount is taxed at 0%
11.
12.
Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.
13.
Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.
14.
Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. . .
15.
Multiply line 14 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15.
16.
Figure the tax on the amount on line 7. Use the 2010 Tax Rate Schedules
...........................
16.
17.
Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.
18.
Figure the tax on the amount on line 1. Use the 2010 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.
19.
Tax. Enter the smaller of line 17 or line 18 here and on your 2013 Schedule J, line 8. If for 2010 you filed
Form 2555 or 2555-EZ, do not enter this amount on Schedule J, line 8. Instead, enter it on line 4 of the 2010
Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.
*If for 2010 you filed Form 2555 or 2555EZ, see the footnote in the 2010 Foreign Earned Income Tax Worksheet before completing this line.
J-5
2010 Foreign Earned Income Tax Worksheet—Line 8
Keep for Your Records
Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2010 Form 1040 using
Form 2555 or 2555-EZ. However, if Schedule J, line 7, is zero or less do not complete this worksheet.
1. Enter the amount from your 2013 Schedule J, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from your (and your spouse's, if filing jointly) 2010 Form 2555, lines 45 and 50,
or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Tax on the amount on line 3. Use the 2010 Tax Rate Schedules, the 2010 Qualified Dividends and
Capital Gain Tax Worksheet,* or the 2010 Schedule D Tax Worksheet in the 2010 Schedule D
instructions,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Tax on the amount on line 2. Use the 2010 Tax Rate Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on
your 2013 Schedule J, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
*Enter the amount from line 3 above on line 1 of the 2010 Qualified Dividends and Capital Gain Tax Worksheet or the 2010 Schedule D Tax
Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if
you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,
subtract the amount from your 2013 Schedule J, line 7, from line 6 of your 2010 Qualified Dividends and Capital Gain Tax Worksheet (line 10
of your 2010 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.
If you did not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then
complete lines 5 and 6 above.
If you had a capital gain excess, complete a second 2010 Qualified Dividends and Capital Gain Tax Worksheet or 2010 Schedule D Tax
Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5
and 6 above. These modifications are to be made only for purposes of filling out the 2010 Foreign Earned Income Tax Worksheet above.
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2010 Qualified Dividends and Capital Gain Tax
Worksheet or line 9 of your 2010 Schedule D Tax Worksheet by your capital gain excess.
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2010 Qualified Dividends and Capital Gain Tax
Worksheet or line 6 of your 2010 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.
3. Reduce (but not below zero) the amount on your 2010 Schedule D (Form 1040), line 18, by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of your 2010 Unrecaptured Section 1250 Gain Worksheet in the 2010 Instructions for
Schedule D (Form 1040).
J-6
Line 9
If you used Schedule J to figure your tax
for:
2012 (that is, you entered the
amount from the 2012 Schedule J,
line 23, on line 44 of your 2012 Form
1040, on line 42 of 2012 Form 1040NR,
or on Form 1040X for 2012), enter on
line 9 the amount from your 2012
Schedule J, line 15.
2011 but not 2012, enter on line 9
the amount from your 2011 Schedule J,
line 3.
If you figured your tax for both 2011
and 2012 without using Schedule J, enter on line 9 the taxable income from
your 2011 tax return (or as previously
adjusted by the IRS or corrected on an
amended return). But if that amount is
zero or less, complete the worksheet below to figure the amount to enter on
line 9.
If you did not file a tax return for
2011, use the amount you would have
reported as your taxable income had you
been required to file a tax return. Be
sure to keep all your records for 2011
until at least 3 years after April 15, 2014
(or the date you file your 2013 tax return, if later).
Instructions for 2011 Taxable
Income Worksheet
Line 2. Any net capital loss deduction
on your 2011 Schedule D, line 21, is not
allowed for income averaging purposes
to the extent it did not reduce your capital loss carryover to 2012. This could
happen if the taxable income before subtracting exemptions—shown on your
2011 Form 1040, line 41, or your 2011
Form 1040NR, line 39 (or as previously
adjusted)—was less than zero. Enter on
line 2 the amount by which your 2011
capital loss carryover to 2012 (the sum
of your short- and long-term capital loss
carryovers) exceeds the excess of the
loss on your 2011 Schedule D, line 16,
over the loss on your 2011 Schedule D,
line 21. If you had any NOL carrybacks
to 2011, be sure you refigured your 2011
capital loss carryover to 2012.
Line 3. If you had an NOL for 2011,
enter the amount of that NOL from
line 25 of the 2011 Form 1045, Schedule A, you filed with Form 1045 or
Form 1040X. If you did not have an
NOL for 2011, enter the portion, if any,
of the NOL carryovers and carrybacks to
2011 that were not used in 2011 and
were carried to years after 2011.
Example. John Farmington did not
use income averaging for 2010, 2011, or
2012. The taxable income before subtracting exemptions on his 2011 Form
1040, line 41, is a negative $29,900. A
deduction for exemptions of $3,700 is
shown on line 42, and line 43, taxable
income, is limited to zero. John subtracts
from the $29,900 loss the $3,700 deduction for exemptions. The result is a negative $33,600, John's 2011 taxable income, which he enters as a positive
2011 Taxable Income Worksheet—Line 9
amount on line 1 of the 2011 Taxable
Income Worksheet.
When John filed his 2011 tax return,
he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was
also entered on Form 1040, line 13), and
a $7,000 loss on Schedule D, line 16 (as
adjusted). He also had a $7,000 capital
loss carryover to 2012. John adds the
$3,000 from Schedule D, line 21, and
the $7,000 carryover. He subtracts from
the $10,000 result the $7,000 loss on his
Schedule D, line 16, and enters $3,000
on line 2 of the worksheet.
John enters $21,100 on line 3 of the
worksheet, the 2011 NOL from his 2011
Form 1045, Schedule A, line 25. Of the
$33,600 negative taxable income, the
$3,700 deduction for exemptions, the
$3,000 capital loss deduction, and his
$5,800 standard deduction were not allowed in figuring the NOL. John had a
$21,100 loss on his 2011 Schedule F,
the only other item on his 2011 tax return.
John enters $24,100 (the $3,000
line 2 amount plus the $21,100 line 3
amount) on line 4 and $9,500 (the
$33,600 line 1 amount minus the
$24,100 line 4 amount) on line 5. He enters $9,500 as a negative amount on
Schedule J, line 9. He enters $6,000 on
Schedule J, line 10, and a negative
$3,500 on Schedule J, line 11. If he uses
Schedule J to figure his tax for 2014, he
will enter the negative $3,500 amount
on his 2014 Schedule J as his 2011 taxable income for income averaging purposes.
Keep for Your Records
Complete this worksheet if you did not use Schedule J to figure your tax for 2012 and your 2011 taxable income was zero or less. See
the instructions above before completing this worksheet.
1. Figure the taxable income from your 2011 tax return (or as previously adjusted) without limiting it to
zero. If you had an NOL for 2011, do not include any NOL carryovers or carrybacks to 2011. Enter the
result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. If there is a loss on your 2011 Schedule D, line 21, add that loss (as a positive
amount) and your 2011 capital loss carryover to 2012. Subtract from that sum the
amount of the loss on your 2011 Schedule D, line 16, and enter the result . . . . . . . .
2.
3. If you had an NOL for 2011, enter it as a positive amount. Otherwise, enter as a
positive amount the portion, if any, of the NOL carryovers and carrybacks to 2011
that were not used in 2011 and were carried to years after 2011 . . . . . . . . . . . . . . . .
3.
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 9 . . . . . . . . . . . . . . .
5.
J-7
1.
Line 12
If line 11 is zero or less, enter -0- on
line 12. Otherwise, figure the tax on the
amount on line 11 using:
The 2011 Tax Rate Schedules below,
The 2011 Qualified Dividends and
Capital Gain Tax Worksheet, later,
The 2011 Schedule D Tax Worksheet in the 2011 Schedule D instructions (but use the 2011 Tax Rate Schedules below when figuring the tax on the
Schedule D Tax Worksheet, lines 34 and
36), or
The 2011 Foreign Earned Income
Tax Worksheet, later.
If your elected farm income includes
net capital gain, you must use the 2011
Schedule D Tax Worksheet to figure the
tax on the amount on line 11. However,
if you filed Form 2555 or 2555-EZ for
2011, you must first complete the 2011
Foreign Earned Income Tax Worksheet,
and then use the 2011 Schedule D Tax
Worksheet to figure the tax on the
amount on line 3 of that worksheet.
When completing the Schedule D
Tax Worksheet, you must allocate 1/3 of
the amount on line 2b (and 1/3 of the
amount on line 2c, if any) to 2011. If for
2011 you had a capital loss that resulted
in a capital loss carryover to 2012, do
not reduce the elected farm income allocated to 2011 by any part of the carryover.
2011 Tax Rate Schedules—Line 12
Schedule X—Use if your 2011 filing status was Single or you
checked filing status box 1 or 2 on Form 1040NR
Schedule Y-2—Use if your 2011 filing status was Married filing
separately or you checked filing status box 3, 4, or 5 on Form 1040NR
If
Schedule J,
line 11, is:
Over—
If
Schedule J,
line 11, is:
Over—
But not
over—
$0 $8,500
8,500 34,500
34,500 83,600
83,600 174,400
174,400 379,150
379,150 .............
Enter on
Schedule J,
line 12
...........
$850.00 +
4,750.00+
17,025.00+
42,449.00+
110,016.50+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
8,500
34,500
83,600
174,400
379,150
But not
over—
$0 $8,500
8,500 34,500
34,500 69,675
69,675 106,150
106,150 189,575
189,575 .............
Enter on
Schedule J,
line 12
...........
$850.00 +
4,750.00 +
13,543.75+
23,756.75+
51,287.00+
10%
15%
25%
28%
33%
35%
of the
amount
over—
$0
8,500
34,500
69,675
106,150
189,575
Schedule Y-1—Use if your 2011 filing status was Married filing
jointly or Qualifying widow(er) or you checked filing status box 6
on Form 1040NR
Schedule Z—Use if your 2011 filing status was Head of household
If
Schedule J,
line 11, is:
Over—
If
Schedule J,
line 11, is:
Over—
$0
17,000
69,000
139,350
212,300
379,150
But not
over—
$17,000
69,000
139,350
212,300
379,150
............
Enter on
Schedule J,
line 12
...........
$1,700.00+
9,500.00 +
27,087.50+
47,513.50+
102,574.00+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
17,000
69,000
139,350
212,300
379,150
$0
12,150
46,250
119,400
193,350
379,150
J-8
But not
over—
$12,150
46,250
119,400
193,350
379,150
.............
Enter on
Schedule J,
line 12
...........
$1,215.00 +
6,330.00 +
24,617.50+
45,323.50+
106,637.50+
10%
15%
25%
28%
33%
35%
of the
amount
over—
$0
12,150
46,250
119,400
193,350
379,150
2011 Qualified Dividends and Capital Gain Tax
Worksheet—Line 12
Keep for Your Records
Use this worksheet only if both of the following apply.
Your elected farm income on your 2013 Schedule J, line 2a, does not include any net capital gain.
You (a) entered qualified dividends on your 2011 Form 1040, line 9b (or your 2011 Form 1040A, line 9b, or 2011 Form 1040NR,
line 10b); (b) entered capital gain distributions directly on your 2011 Form 1040, line 13 (or your 2011 Form 1040A, line 10, or 2011 Form
1040NR, line 14) and were not required to file Schedule D; or (c) filed Schedule D in 2011 and you answered “Yes” on lines 17 and 20 of
that Schedule D.
1.
Amount from your 2013 Schedule J, line 11. If for 2011 you filed Form 2555 or
2555-EZ, enter the amount from line 3 of the 2011 Foreign Earned Income Tax
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2.
Amount from your 2011 Form 1040, line 9b* (or your
2011 Form 1040A, line 9b, or 2011 Form 1040NR,
line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
Did you file Schedule D in 2011?*
2.
Yes. Enter the smaller of line 15 or 16 of your
2011 Schedule D, but do not enter less
than -0No. Enter the amount from your 2011 Form
1040, line 13 (or your 2011 Form 1040A,
line 10, or 2011 Form 1040NR, line 14)
. . 3.
4.
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5.
Amount, if any, from your 2011 Form 4952,
line 4g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6.
Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7.
Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8.
Enter one of the following three amounts depending on your
filing status:
$34,500 if single or married filing separately, or if you
checked filing status box 1, 2, 3, 4, or 5 on Form 1040NR;
. . . . . . . . . . . . 8.
$69,000 if married filing jointly or qualifying widow(er) or
if you checked filing status box 6 on Form 1040NR;
$46,250 if head of household.
9.
Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10.
Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11.
Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . 11.
12.
Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13.
Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14.
Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15.
Multiply line 14 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16.
Figure the tax on the amount on line 7. Use the 2011 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17.
Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18.
Figure the tax on the amount on line 1. Use the 2011 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
19.
Tax. Enter the smaller of line 17 or line 18 here and on your 2013 Schedule J, line 12. If for 2011 you filed
Form 2555 or 2555-EZ, do not enter this amount on Schedule J, line 12. Instead, enter it on line 4 of the
2011 Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19.
*If for 2011 you filed Form 2555 or 2555EZ, see the footnote in the 2011 Foreign Earned Income Tax Worksheet before completing this line.
J-9
2011 Foreign Earned Income Tax Worksheet—Line 12
Keep for Your Records
Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2011 Form 1040 using
Form 2555 or 2555-EZ. However, if Schedule J, line 11, is zero or less do not complete this worksheet.
1. Enter the amount from your 2013 Schedule J, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from your (and your spouse's, if filing jointly) 2011 Form 2555, lines 45 and 50,
or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Tax on the amount on line 3. Use the 2011 Tax Rate Schedules, the 2011 Qualified Dividends and
Capital Gain Tax Worksheet,* or the 2011 Schedule D Tax Worksheet in the 2011 Schedule D
instructions,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Tax on the amount on line 2. Use the 2011 Tax Rate Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on
your 2013 Schedule J, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2.
3.
4.
5.
6.
*Enter the amount from line 3 above on line 1 of the 2011 Qualified Dividends and Capital Gain Tax Worksheet or the 2011 Schedule D Tax
Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if
you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,
subtract the amount from your 2013 Schedule J, line 11, from line 6 of your 2011 Qualified Dividends and Capital Gain Tax Worksheet
(line 10 of your 2011 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.
If you did not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then
complete lines 5 and 6 above.
If you had a capital gain excess, complete a second 2011 Qualified Dividends and Capital Gain Tax Worksheet or 2011 Schedule D Tax
Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5
and 6 above. These modifications are to be made only for purposes of filling out the 2011 Foreign Earned Income Tax Worksheet above.
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2011 Qualified Dividends and Capital Gain Tax
Worksheet or line 9 of your 2011 Schedule D Tax Worksheet by your capital gain excess.
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2011 Qualified Dividends and Capital Gain Tax
Worksheet or line 6 of your 2011 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.
3. Reduce (but not below zero) the amount on your 2011 Schedule D (Form 1040), line 18, by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of your 2011 Unrecaptured Section 1250 Gain Worksheet in the 2011 Instructions for
Schedule D (Form 1040).
J-10
Line 13
If you used Schedule J to figure your tax
for 2012 (that is, you entered the amount
from the 2012 Schedule J, line 23, on
line 44 of your 2012 Form 1040, on
line 42 of your 2012 Form 1040NR, or
on Form 1040X for 2012), enter on
line 13 the amount from your 2012
Schedule J, line 3.
If you did not use Schedule J to figure your tax for 2012, enter on line 13
the taxable income from your 2012 tax
return (or as previously adjusted by the
IRS or corrected on an amended return).
But if that amount is zero or less, complete the worksheet below to figure the
amount to enter on line 13.
If you did not file a tax return for
2012, use the amount you would have
reported as your taxable income had you
been required to file a tax return. Be
sure to keep all your records for 2012
until at least 3 years after April 15, 2014
(or the date you file your 2013 tax return, if later).
Instructions for 2012 Taxable
Income Worksheet
Line 2. Any net capital loss deduction
on your 2012 Schedule D, line 21, is not
allowed for income averaging purposes
to the extent it did not reduce your capital loss carryover to 2013. This could
happen if the taxable income before subtracting exemptions—shown on your
2012 Form 1040, line 41, or your 2012
Form 1040NR, line 39 (or as previously
adjusted)—was less than zero. Enter on
line 2 the amount by which your 2012
capital loss carryover to 2013 (the sum
of your short- and long-term capital loss
carryovers) exceeds the excess of the
loss on your 2012 Schedule D, line 16,
over the loss on your 2012 Schedule D,
line 21.
Line 3. If you had an NOL for 2012,
enter the amount of that NOL from
line 25 of the 2012 Form 1045, Schedule A, you filed with Form 1045 or
Form 1040X. If you did not have an
NOL for 2012, enter the portion, if any,
of the NOL carryovers and carrybacks to
2012 that were not used in 2012 and
were carried to years after 2012.
Example. John Farmington did not
use income averaging for 2010, 2011, or
2012. The taxable income before subtracting exemptions on his 2012 Form
1040, line 41, is a negative $1,000. This
amount includes an NOL deduction on
his 2012 Form 1040, line 21, of $1,500.
The $1,500 is the portion of the 2011
NOL that was remaining from 2010 to
be carried to 2012. See the examples,
earlier. A deduction for exemptions of
$3,800 is shown on Form 1040, line 42,
and line 43, taxable income, is limited to
zero. John does not have an NOL for
2012. John subtracts from the $1,000
negative amount on Form 1040, line 41,
the $3,800 deduction for exemptions.
The result is a negative $4,800, John's
2012 taxable income, which he enters as
2012 Taxable Income Worksheet—Line 13
a positive amount on line 1 of the 2012
Taxable Income Worksheet.
When John filed his 2012 tax return,
he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was
also entered on Form 1040, line 13), a
$7,000 loss on Schedule D, line 16, and
a $5,000 capital loss carryover to 2013
(his 2012 capital loss carryover to 2013
was $5,000, not $4,000, because the
amount on his Form 1040, line 41, was a
negative $1,000). John adds the $3,000
from Schedule D, line 21, and the
$5,000 carryover. He subtracts from the
$8,000 result the $7,000 loss on his
Schedule D, line 16, and enters $1,000
on line 2 of the worksheet.
John enters -0- on line 3 of the worksheet because he does not have an NOL
for 2012 and did not have an NOL carryover from 2012 available to carry to
2013 and later years. The NOL deduction for 2012 of $1,500 was reduced to
zero because it did not exceed his modified taxable income of $3,500. Modified
taxable income is figured by adding
back the $3,000 net capital loss deduction and the $3,800 exemption deduction
to negative taxable income (figured
without regard to the NOL deduction) of
$3,300. John enters $1,000 on line 4 and
$3,800 on line 5. He enters $3,800 as a
negative amount on Schedule J, line 13.
He enters $6,000 on Schedule J, line 14,
and $2,200 on Schedule J, line 15. If he
uses Schedule J to figure his tax for
2014, he will enter $2,200 on his 2014
Schedule J as his 2012 taxable income
for income averaging purposes.
Keep for Your Records
Complete this worksheet if your 2012 taxable income was zero or less. See the instructions above before completing this worksheet.
1. Figure the taxable income from your 2012 tax return (or as previously adjusted) without limiting it to
zero. If you had an NOL for 2012, do not include any NOL carryovers or carrybacks to 2012. Enter the
result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. If there is a loss on your 2012 Schedule D, line 21, add that loss (as a positive
amount) and your 2012 capital loss carryover to 2013. Subtract from that sum the
amount of the loss on your 2012 Schedule D, line 16, and enter the result . . . . . . . .
2.
3. If you had an NOL for 2012, enter it as a positive amount. Otherwise, enter as a
positive amount the portion, if any, of the NOL carryovers and carrybacks to 2012
that were not used in 2012 and were carried to years after 2012 . . . . . . . . . . . . . . . .
3.
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 13 . . . . . . . . . . . . . .
5.
J-11
1.
Line 16
If line 15 is zero or less, enter -0- on
line 16. Otherwise, figure the tax on the
amount on line 15 using:
The 2012 Tax Rate Schedules below,
The 2012 Qualified Dividends and
Capital Gain Tax Worksheet, later,
The 2012 Schedule D Tax Worksheet in the 2012 Schedule D instructions (but use the 2012 Tax Rate Schedules when figuring the tax on the Sched-
ule D Tax Worksheet, lines 34 and 36),
or
The 2012 Foreign Earned Income
Tax Worksheet, later.
If your elected farm income includes
net capital gain, you must use the 2012
Schedule D Tax Worksheet to figure the
tax on the amount on line 15. However,
if you filed Form 2555 or 2555-EZ for
2012, you must first complete the 2012
Foreign Earned Income Tax Worksheet,
and then use the 2012 Schedule D Tax
Worksheet to figure the tax on the
amount on line 3 of that worksheet.
When completing the Schedule D
Tax Worksheet, you must allocate 1/3 of
the amount on line 2b (and 1/3 of the
amount on line 2c, if any) to 2012. If for
2012 you had a capital loss that resulted
in a capital loss carryover to 2013, do
not reduce the elected farm income allocated to 2012 by any part of the carryover.
2012 Tax Rate Schedules—Line 16
Schedule X—Use if your 2012 filing status was Single or you
checked filing status box 1 or 2 on Form 1040NR
Schedule Y-2—Use if your 2012 filing status was Married filing
separately or you checked filing status box 3, 4, or 5 on Form 1040NR
If
Schedule J,
line 15, is:
Over—
If
Schedule J,
line 15, is:
Over—
But not
over—
$0 $8,700
8,700 35,350
35,350 85,650
85,650 178,650
178,650 388,350
388,350 .............
Enter on
Schedule J,
line 16
...........
$870.00 +
4,867.50 +
17,442.50+
43,482.50+
112,683.50+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
8,700
35,350
85,650
178,650
388,350
But not
over—
$0 $8,700
8,700 35,350
35,350 71,350
71,350 108,725
108,725 194,175
194,175 .............
Enter on
Schedule J,
line 16
...........
$870.00 +
4,867.50 +
13,867.50+
24,332.50+
52,531.00+
10%
15%
25%
28%
33%
35%
of the
amount
over—
$0
8,700
35,350
71,350
108,725
194,175
Schedule Y-1—Use if your 2012 filing status was Married filing
jointly or Qualifying widow(er) or you checked filing status box 6
on Form 1040NR
Schedule Z—Use if your 2012 filing status was Head of household
If
Schedule J,
line 15, is:
Over—
If
Schedule J,
line 15, is:
Over—
$0
17,400
70,700
142,700
217,450
388,350
But not
over—
$17,400
70,700
142,700
217,450
388,350
............
Enter on
Schedule J,
line 16
...........
$1,740.00+
9,735.00 +
27,735.00+
48,665.00+
105,062.00+
of the
amount
over—
10%
15%
25%
28%
33%
35%
$0
17,400
70,700
142,700
217,450
388,350
$0
12,400
47,350
122,300
198,050
388,350
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But not
over—
$12,400
47,350
122,300
198,050
388,350
.............
Enter on
Schedule J,
line 16
...........
$1,240.00+
6,482.50 +
25,220.00+
46,430.00+
109,229.00+
10%
15%
25%
28%
33%
35%
of the
amount
over—
$0
12,400
47,350
122,300
198,050
388,350
2012 Qualified Dividends and Capital Gain Tax
Worksheet—Line 16
Keep for Your Records
Use this worksheet only if both of the following apply.
Your elected farm income on your 2013 Schedule J, line 2a, does not include any net capital gain.
You (a) entered qualified dividends on your 2012 Form 1040, line 9b (or your 2012 Form 1040A, line 9b, or 2012 Form 1040NR,
line 10b); (b) entered capital gain distributions directly on your 2012 Form 1040, line 13 (or your 2012 Form 1040A, line 10, or 2012 Form
1040NR, line 14) and were not required to file Schedule D; or (c) filed Schedule D in 2012 and you answered “Yes” on lines 17 and 20 of
that Schedule D.
1.
Amount from your 2013 Schedule J, line 15. If for 2012 you filed Form 2555 or
2555-EZ, enter the amount from line 3 of the 2012 Foreign Earned Income Tax
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2.
Amount from your 2012 Form 1040, line 9b* (or your 2012
Form 1040A, line 9b, or 2012 Form 1040NR,
line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
Did you file Schedule D in 2012?*
Yes. Enter the smaller of line 15 or 16 of your
2012 Schedule D, but do not enter less
than -0No. Enter the amount from your 2012 Form 1040,
line 13 (or your 2012 Form 1040A, line 10, or
2012 Form 1040NR, line 14)
2.
. . 3.
4.
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5.
Amount, if any, from your 2012 Form 4952,
line 4g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6.
Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7.
Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8.
Enter one of the following three amounts depending on your
filing status:
$35,350 if single or married filing separately, or if you
checked filing status box 1, 2, 3, 4, or 5 on Form 1040NR;
............
8.
$70,700 if married filing jointly or qualifying widow(er) or
if you checked filing status box 6 on Form 1040NR;
$47,350 if head of household.
9.
Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10.
Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11.
Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . 11.
12.
Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13.
Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14.
Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15.
Multiply line 14 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15.
16.
Figure the tax on the amount on line 7. Use the 2012 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . .16.
17.
Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17.
18.
Figure the tax on the amount on line 1. Use the 2012 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . .18.
19.
Tax. Enter the smaller of line 17 or line 18 here and on your 2013 Schedule J, line 16. If for 2012 you filed
Form 2555 or 2555-EZ, do not enter this amount on Schedule J, line 16. Instead, enter it on line 4 of the 2012
Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19.
*If for 2012 you filed Form 2555 or 2555EZ, see the footnote in the 2012 Foreign Earned Income Tax Worksheet before completing this line.
J-13
2012 Foreign Earned Income Tax Worksheet—Line 16
Keep for Your Records
Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2012 Form 1040 using
Form 2555 or 2555-EZ. However, if Schedule J, line 15, is zero or less, do not complete this worksheet.
1. Enter the amount from your 2013 Schedule J, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from your (and your spouse's, if filing jointly) 2012 Form 2555, lines 45 and 50,
or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Tax on the amount on line 3. Use the 2012 Tax Rate Schedules, the 2012 Qualified Dividends and
Capital Gain Tax Worksheet,* or the 2012 Schedule D Tax Worksheet in the 2012 Schedule D
instructions,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Tax on the amount on line 2. Use the 2012 Tax Rate Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on
your 2013 Schedule J, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2.
3.
4.
5.
6.
*Enter the amount from line 3 above on line 1 of the 2012 Qualified Dividends and Capital Gain Tax Worksheet or the 2012 Schedule D Tax
Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if
you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,
subtract the amount from your 2013 Schedule J, line 15, from line 6 of your 2012 Qualified Dividends and Capital Gain Tax Worksheet
(line 10 of your 2012 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.
If you did not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then
complete lines 5 and 6 above.
If you had a capital gain excess, complete a second 2012 Qualified Dividends and Capital Gain Tax Worksheet or 2012 Schedule D Tax
Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5
and 6 above. These modifications are to be made only for purposes of filling out the 2012 Foreign Earned Income Tax Worksheet above.
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2012 Qualified Dividends and Capital Gain Tax
Worksheet or line 9 of your 2012 Schedule D Tax Worksheet by your capital gain excess.
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2012 Qualified Dividends and Capital Gain Tax
Worksheet or line 6 of your 2012 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.
3. Reduce (but not below zero) the amount on your 2012 Schedule D (Form 1040), line 18, by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of your 2012 Unrecaptured Section 1250 Gain Worksheet in the 2012 Instructions for
Schedule D (Form 1040).
Lines 19, 20, and 21
For reporting purposes, the “tax” line of
your tax return may include amounts
that are not tax imposed by section 1 of
the Internal Revenue Code. For exam-
ple, your "tax" line may, in addition to
the tax imposed by section 1, include
amounts from Forms 8814 or 4972; alternative minimum tax if you filed Form
1040A; or amounts from the recapture
of an education credit. Do not include
J-14
these other tax amounts on lines 19
through 21.
If you amended your return or the
IRS made changes to it, make sure you
enter the corrected amount.
| File Type | application/pdf |
| File Title | 2013 Instruction 1040 Schedule J |
| Subject | 2013 Instructions for Schedule J , Income Averaging for Farmers and Fishermen |
| Author | W:CAR:MP:FP |
| File Modified | 2013-09-25 |
| File Created | 2013-09-11 |