2010 Instruction 1040

1 Userid:SD_5 DGLBDTD i1040xLeadpct: 0%Pt. size: 10oDraftoOk to PrintPAGER/XMLF ileid:..rs\5dglb\SBU Data\+PRODUCTS\+ 2010 \1040 inst\ (Init. & date)Page 1 of 100 of instructions 104012:16 - 29-DEC- 2010 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before INSTRUCTIONS2010 Get a faster refund, reduce errors, and save more information on IRS e-file and Free File,see page 5 or click on IRS e-file at of the Treasury Internal Revenue Service doing your taxesfaster and easier. REPAYMENT OF FIRST-TIME HOMEBUYER CREDIT(HOMES BOUGHT IN 2008)If you claimed the credit for a home you bought in2008, you generally have to begin repayingit ON PERSONAL EXEMPTIONS AND OVERALLITEMIZED DEDUCTIONS ENDED For 2010 , you will no longer lose part of yourdeduction for personal exemptions and itemizeddeductions, regardless of the amount of your adjusted gross income.

2 For details on these and other changes, see page the fast, safe, and free way to prepare and e-fileyour taxes. See : THIS BOOKLET DOES NOT CONTAIN TAX FORMSADOPTION CREDIT REFUNDABLEYour quali ed adoption expenses are nowrefundable. Cat. No. 24811 VPage 2 of 100 of instructions 104012:16 - 29-DEC- 2010 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before Taxpayer,A Message Fromthe CommissionerEvery year, the IRS works hard to make the process of filing your taxes asquick and easy as possible. Providing quality service is one of our top not only reduces the burden on you, but also helps you file an accurate returnright from the best place to get information from the IRS is our website, Inaddition to getting your tax questions answered, there s also a very popularfeature, Where s My Refund?

3 To track the progress of your refund. You canalso find informative videos to help you understand your tax obligations onYouTube, at would like to bring to your attention a couple of items that could be of helpas you file and pay your taxes this year. A number of federal tax incentives thatwere enacted in 2009 as part of the American Recovery and Reinvestment Actare still in effect for 2010 . These include the American Opportunity Credit andthe expanded Earned Income Credit. Make sure you check to see if you qualifyfor these and other important deductions and that the fastest and easiest way to get your refund is to e-file anduse direct deposit. You could receive your refund in as little as 10 days afterfiling, which can help you pay bills, make some important purchases and maybeput some money aside for has become so popular that seven out of 10 individual taxpayers nowe-file their return.

4 It s the first choice for about 100 million taxpayers becauseit s fast, safe and below a certain income level can qualify to use free taxpreparation software through the Free File program. Plus, everyone can e-filefor free using fillable forms available at So, isn t it time you made theswitch to e-file?If you need any more information or have questions about taxes or taxcredits, please visit us at or call our toll-free number at1-800-829-1040. We are here to help ,Douglas H. ShulmanThe IRS MissionProvide America s taxpayers top quality service by helping them understand and meet their taxresponsibilities and by applying the tax law with integrity and fairness to 2 -Page 3 of 100 of instructions 104012:16 - 29-DEC- 2010 The type and rule above prints on all proofs including departmental reproduction proofs.

5 MUST be removed before of ContentsContentsPageContentsPageDepartme ntof theTaxpayer Advocate 42010 Earned Income Credit (EIC) 52 Suggestions for Improving the IRSI nternal(Taxpayer Advocacy Panel).. 69 RevenueServiceIRS 5 Amount You 71 What s 6 Third Party 72 Filing 7 Sign Your 72Do You Have To File?.. 7 Assemble Your 73 When and Where Should You File?.. 72010 Tax 74 Where To Report Certain Items2010 Tax Computation 86 From 2010 Forms W-2, 1098, andGeneral 10 Refund 90 Line instructions for Form 12 What Is TeleTax?.. 90 Name and 12 Calling the 92 Social Security Number (SSN).. 12 Quick and Easy Access to Tax HelpPresidential Election Campaign Fund.

6 12and Tax 93 Filing 12 Disclosure, Privacy Act, and 14 Reduction Act 19 Order Form for Forms and Publications. 96 Adjusted Gross 27 Major Categories of Federal Incomeand Outlays For Fiscal Year 97 Tax and 332010 Tax Rate 98 Other 43- 3 -Page 4 of 100 of instructions 104012:16 - 29-DEC- 2010 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before Taxpayer Advocate Service Is Here To HelpThe Taxpayer Advocate Service (TAS) is your voice at theAs a taxpayer, you have rights that the IRS must abide by in itsIRS. Our job is to ensure that every taxpayer is treated equallydealings with you.

7 Our tax toolkit at isand fairly, and that you know and understand your rights. Wea first step toward understanding what your rights are. You canoffer free help to guide you through the often confusingget updates on hot tax topics by visiting our YouTube channelprocess of resolving tax problems that you have not been ableat and our Facebook page at solve on your own. The worst thing you can do is nothing , or by following our tweets atall! , try to resolve your problem on your own. But, if youIf you think TAS might be able to help you, you can call yourcannot do so, then come to us. TAS can help if:local advocate, whose number is in your phone book; in Pub. Your problem with the IRS is causing financial1546, Taxpayer Advocate Service Your Voice at the IRS;difficulties or hardship for you or your on our website at You can also callour toll-free number at 1-877-777-4778 or TTY/TDD You have tried repeatedly to contact the IRS, but no responded.

8 The IRS has not responded to you by the date Income Taxpayer Clinics (LITCs)The Low Income Taxpayer Clinic program serves individualsWhen you come to the TAS for help, you will be assigned towho have a problem with the IRS and whose income is belowone advocate who will be with you at every turn. Youra certain level. LITCs are independent from the IRS. Mostadvocate will listen to you, help you understand what needs toLITCs can provide representation before the IRS or in court onbe done, and stay with you until your problem is resolved. Weaudits, tax collection disputes, and other issues for free or for ahave offices in every state, and our advocates are allsmall fee. If an individual s native language is not English,experienced with the IRS, so we know how to cut through thesome clinics can provide information in certain other languagesred tape.

9 TAS can help you work out an alternative paymentabout taxpayer rights and responsibilities. For moreplan. We ll make sure the right people hear your case, and thatinformation, see Pub. 4134, Low Income Taxpayer Clinic act upon publication is available at , by calling1-800-TAX-FORM (1-800-829-3676), or at your local for Improving the IRST axpayer Advocacy PanelHave a suggestion for improving the IRS and do not know who to contact? The Taxpayer Advocacy Panel (TAP) is a diversegroup of citizen volunteers who listen to taxpayers, identify taxpayers issues, and make suggestions for improving IRS serviceand customer satisfaction. The panel is demographically and geographically diverse, with at least one member from each state,the District of Columbia, and Puerto Rico.

10 Contact TAP at or 1-888-912-1227 (toll-free).- 4 -Page 5 of 100 of instructions 104012:16 - 29-DEC- 2010 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before e-file: It s Safe. It s Easy. It VITA program offers free tax help for low tomoderate income (under $49,000 in adjusted grossincome) taxpayers who need help preparing their taxreturns. The Tax Counseling for the Elderly (TCE)program provides free tax help to people age 60 andolder. There are 12,000 VITA and TCE reasons 70% of Americans file their taxes electronically. Security The IRS uses the latest encryption technology to safeguard your information.