2008 Instruction 1040 - Internal Revenue Service

1 Userid: _____ DTD I1040AZ04 Leadpct: 0% Pt. size: 10 Draft Ok to Print PAGER/XML Fileid: D:\Users\d4rfb\Documents\Epicfiles\ 2008 \ (Init. & date). Page 1 of 95 of instructions 1040 13:24 - 12-NOV- 2008 . The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. 1040. NOTE: THIS BOOKLET DOES NOT CONTAIN TAX FORMS. instructions . 2008 makes doing your taxes faster and easier. Get a faster refund, reduce errors, and save paper. For more information on IRS e-file, see page 5 or click on IRS e-file at IRA DEDUCTION INCREASED. You and your spouse, if filing jointly, may each be able to deduct up to $5,000 ($6,000 if age 50 or older at the end of 2008 ). STANDARD DEDUCTION FOR REAL ESTATE TAXES. AND DISASTER LOSSES. You may be able to increase your standard deduction by state and local real estate taxes you paid and certain disaster losses. FIRST-TIME HOMEBUYER CREDIT. If you bought a home after April 8, 2008 , you may be able to take this credit.

2 RECOVERY REBATE CREDIT. This credit is reduced by any economic stimulus payment you received. MAILING YOUR RETURN. You may be mailing your return to a different address this year. For details on these and other changes, see pages 6 and 7. Department of the Treasury IRS Internal Revenue Service Cat. No. 24811V. Page 2 of 95 of instructions 1040 13:24 - 12-NOV- 2008 . The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. A Message From Dear Taxpayer, the Commissioner Supreme Court Justice Oliver Wendell Holmes, Jr. notably said Taxes are what we pay for civilized society. We should be proud that the vast majority of American citizens pay their taxes honestly and of their own free will. In an ever more complex and global world, we cannot take for granted this cornerstone principle of our democracy. For the IRS's part, we owe it to all taxpayers to make the process of paying taxes as easy as possible.

3 IRS employees are dedicated to helping taxpayers to quickly get their questions answered, complete their forms, pay their taxes, and get back to their lives. From the telephone representative who answers tax law questions, to the walk-in site employees who help low-income taxpayers, to the technicians that design and build our website we are committed to providing top quality Service . Unfortunately, there will always be some that cheat their fellow citizens by avoiding the payment of their fair share of taxes. The IRS owes it to the millions of you who promptly pay your taxes in full to pursue these people through strong enforcement programs. I believe this is a basic matter of fairness. If you need more information about taxes, I hope you'll visit us online at , or call us toll free at 1-800-829-1040. Your government works for you, so please do not hesitate to contact us if you need help. Sincerely, Douglas H. Shulman The IRS Mission Provide America's taxpayers top quality Service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

4 - 2 - Page 3 of 95 of instructions 1040 13:24 - 12-NOV- 2008 . The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Table of Contents Contents Page Contents Page Department of the Treasury IRS Customer Service Standards .. 4 2008 Earned Income Credit (EIC). Table .. 53. Internal Help With Unresolved Tax Issues Revenue (Taxpayer Advocate Service ) .. 4 Refund .. 63. Service IRS e-file .. 5 Amount You Owe .. 65. What's New .. 6 Third Party Designee .. 66. Filing Requirements .. 7 Sign Your Return .. 66. Do You Have To File? .. 7 Assemble Your Return .. 67. When and Where Should You File? .. 7 2008 Tax Table .. 68. Where To Report Certain Items 2008 Tax Computation Worksheet .. 80. From 2008 Forms W-2, 1098, and 1099 .. 10 General Information .. 81. Tax Return Page Reference .. 12 Refund Information .. 84. Line instructions for Form 1040 .. 14 What Is TeleTax? .. 84. Name and Address.

5 14 Calling the IRS .. 86. Social Security Number (SSN) .. 14 Quick and Easy Access to Tax Help and Tax Products .. 87. Presidential Election Campaign Fund . 14. Disclosure, Privacy Act, and Paperwork Filing Status .. 14 Reduction Act Notice .. 88. Exemptions .. 16 Order Form for Forms and Publications . 90. Income .. 20 Major Categories of Federal Income and Outlays For Fiscal Year 2007 .. 91. Adjusted Gross Income .. 28. 2008 Tax Rate Schedules .. 92. Tax and Credits .. 34. Index .. 93. Other Taxes .. 44. Payments .. 45. - 3 - Page 4 of 95 of instructions 1040 13:24 - 12-NOV- 2008 . The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. IRS Customer Service Standards At the IRS, our goal is to continually improve the quality of Prompt refunds. our services . To achieve that goal, we have developed customer Canceling penalties. Service standards in the following areas. Resolving problems.

6 Easier filing and payment options. Simpler forms. Access to information. If you would like information about the IRS standards and Accuracy. a report of our accomplishments, see Pub. 2183. Help With Unresolved Tax Issues Taxpayer Advocate Service The Taxpayer Advocate Service (TAS) is an independent You can contact the Taxpayer Advocate Service by: organization within the IRS whose employees assist Calling the TAS toll-free case intake line at taxpayers who are experiencing economic harm, who are 1-877-777-4778 or TTY/TDD 1-800-829-4059, seeking help in resolving tax problems that have not been Calling or writing your local taxpayer advocate, resolved through normal channels, or who believe that an whose address and phone number are listed in the IRS system or procedure is not working as it should. You government listings in your local telephone directory may be eligible for assistance if: and in Pub. 1546, Taxpayer Advocate Service Your You are experiencing economic harm or significant Voice at the IRS, cost (including fees for professional representation), Filing Form 911, Request for Taxpayer Advocate You have experienced a delay of more than 30 days to Service Assistance (and Application for Taxpayer resolve your tax issue, or Assistance Order), with the Taxpayer Advocate You have not received a response or resolution to the Service , or problem by the date promised by the IRS.

7 Asking an IRS employee to complete Form 911 on The Service is free, confidential, tailored to meet your your behalf. needs, and available for businesses as well as individuals. To get a copy of Form 911 or learn more about the There is at least one local taxpayer advocate in each state, Taxpayer Advocate Service , go to the District of Columbia, and Puerto Rico. Because advocates are part of the IRS, they know the tax system Low Income Taxpayer Clinics (LITCs). and how to navigate it. If you qualify for assistance, you LITCs are independent organizations that provide low will receive personalized Service from a knowledgeable income taxpayers with representation in federal tax advocate who will: controversies with the IRS for free or for a nominal charge. Listen to your problem, The clinics also provide tax education and outreach for Help you understand what needs to be done to taxpayers who speak English as a second language. Pub. resolve it, and 4134, Low Income Taxpayer Clinic List, provides Stay with you every step of the way until your information on clinics in your area.

8 It is available at problem is resolved. or your local IRS office. - 4 - Page 5 of 95 of instructions 1040 13:24 - 12-NOV- 2008 . The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. e-file! A fast alternative to filing paper returns. Why do more than 88 million taxpayers file their returns electronically? It's faster, easier, accurate, and more convenient than paper filing. With e-file, taxpayers receive these benefits: Faster as little as 10 days with Direct Deposit. Greater 1% or less error rate. Secure and confidential submission. Quick notification of receipt of return. No paper return to mail. File now, pay later. More than half a billion federal tax returns have been e-filed! e-file helps the environment, uses less paper, and saves taxpayer money it costs less to process an e-filed return than a paper return. Totally Safe and Secure The IRS uses the most secure technology available to safeguard your personal information.

9 Rest assured that when you e-file, your information will be safe. Visit: for the latest information. Use IRS e-file if you don't qualify for Free File. There are three ways: Make Under $56,000? e-file For Free! Use a tax professional. Many taxpayers rely on tax professionals to handle If your 2008 adjusted gross income was $56,000 or their returns and most tax professionals can e-file your less, you can electronically file for FREE by using return you just have to be sure to ask. Also, tax Free File at ! professionals can charge a fee for IRS e-file. Fees can vary depending on the professional and specific Use Free File and get these benefits: services rendered, so be sure to discuss this up front. Easy to use, safe, and accurate. Use a computer. You can easily electronically prepare and e-file your File your taxes online 24 hours a day, 7 days a week own tax return. To do so, you'll need: (must access Free File through ). A computer with Internet access, and Receive your refund in as little as 10 days with IRS-approved tax preparation software available Direct Deposit.

10 Via the Internet for online use, for download from the Internet, and in retail stores for offline use. Available in English and Spanish. Visit for details. Save paper help the environment. Use a volunteer. The VITA Program offers free tax help for low to Made more than $56,000? You can still file your taxes moderate income (under $35,000) taxpayers who online with e-file. Check out the IRS e-file for cannot prepare their own tax returns. The Tax Individuals page on for low-cost e-filing Counseling for the Elderly (TCE) Program provides options. free tax help to people age 60 and older. e-IRS. You can accomplish many things electronically within The e-IRS is a gateway to the many IRS electronic options and it's available 24 hours a day, 7 days a week. Should you choose to file a paper return, you'll find information, resources, and all of the forms ready to download. - 5 - Page 6 of 95 of instructions 1040 13:24 - 12-NOV- 2008 . The type and rule above prints on all proofs including departmental reproduction proofs.