What is the purpose of Form Instruction 1040 Line 44?
To tell you what information to include on Form 1040 Line 44.
If you don't want to include your business income, subtract from Schedule C (Form 1040) the income of each person who has business income. For details, see “How can I report the income of my family?”
The business income is reported on Schedule C (Form 1040) as follows:
Reporting an employee's business income. You must report any business income received by a nonresident alien employee on Form 1040, line 21, in the appropriate box. If all the employees are US citizens or resident aliens, and there is no other income you may choose to report (for example, you pay your employees less than the standard deduction), use the following instructions. Enter every dollar on line 18, except the foreign earned income exclusion listed under the box titled Foreign earned income, or enter 500 as a dollar amount (500 × your total foreign earnings from self-employment). Enter any deductions on lines 3 through 8. Enter any net profit or loss reported on line 14. Enter the employee's Social Security number (or Form SS-5, if you used Form SS-5 to figure your foreign tax withheld) on line 24 and the number of the social security account used on line 18. See the Instructions for Schedule C (Form 1040) for more information on how to file Form 1040 Line 44. Report any other income by adding to Line 24 any business income and by entering Line 24 minus the amount in the box titled Foreign earned income. The amount of income you reported on Form 1040 Line 44 includes wages, tips, self-employment income, pension income, and other forms of income such as rental income. See the Instructions for Form 1040, line 12, for information on what to include in the foreign earned income exclusion. Do not include foreign housing income, net loss, or any foreign sources of income.
Disaggregating business income. You must also report business income in either the normal or reduced reporting categories on Form 1040, line 20. However, you must report the adjusted gross income and other basic categories on Form 1040, line 6 and on page 1 if you are a U.S. citizen or resident alien and have gross income from U.S. sources.
Enter all amounts on Form 1040, line 21, except the business income.
Who should complete Form Instruction 1040 Line 44?
Form Instruction 1040 Line 44 is available for taxpayers whose modified AGI or AGI below the following thresholds:
Filer filing status Married filing jointly Single or head of household AGI below 70,325 70,325 AGI at or below 77,325 77,325
Filing status Exempt from filing AGI under 74,950 74,950 Income limitation for filing (married filing jointly) 110,000 110,000
The following information should be reported on Line 44 on line 21 of Form 1040.
Social Security Number
Taxpayers should complete Line 44, “Name and Street Address of Business,” at the place on the form where the business address should be located on the taxpayer's return. However, taxpayers may not change the street address that was assigned when they filed their original return unless the street address on their return has changed.
If the business address is the same (the same location) on both returns, the business address should be entered on line 44. If the business address is different the taxpayer should complete two separate lines for Line 44 of Form 1040 and the business address. However, only the line for Line 44, “Name and Street Address of Business,” should be entered on Form 1040 Line 21. If the business address is different (the new location on the return) the business address should be entered on lines 44 and 45.
Address to Report Owner
In most instances, an owner of a taxpayer's business will report to their own business address on Line 44 of Form 1040. However, there are certain instances where a new owner must report the taxpayer's business address for the tax years immediately preceding filing. The following examples show how to enter the new address on Form 1040:
An owner of a business who buys shares from another taxpayer in which the former taxpayer is not a partner. The new owner must enter the address of the acquisition of shares in the business. If the new owner wants to report this ownership, he/she must complete Line 48, “Business Owner's Address.”
An owner that bought new shares and is holding such stock as part of a family trust (e.g., a father, mother and sons, sister and daughters). The purchase price of the shares is not reflected in the income of the business. Enter the address of the trust in the section labeled: “Trust or Family Business.
When do I need to complete Form Instruction 1040 Line 44?
You must complete Form Instruction 1040 Line 44 (Individual Retirement Account) between April 15 and June 15 of your year of death. If you have more than one Form Instruction 1040 Line 44, complete one form for each Form Instruction 1040 Line 44 that you receive. Do I have to file Form 1040S? You have to file Form 1040 (S) (Individual Retirement Account) to open an IRA or get an extension of time to take a distribution from an IRA. However, you can complete Form 1040-SSB (Single-Sided Statement for the Return of Qualified Retirement Payments) and file it once you receive your retirement payment. Do I have to report my IRA balance on my tax return? Yes. If you are age 70½ or older, or you are underage 59½ and don't have qualifying dependents, you may be required to file Form 4562 (Tax Return of a Participant Who Is a Minor). How do I file Form 8889? You may file Form 8889 by using the Electronic Federal Tax Payment System (FTPS) and filing a paper Form 8889. You can use FTPS to make electronic payments for all federal taxes you owe. Follow these instructions to get started. For help creating a payment system in your business, contact us at and click F. How do I pay my income taxes by electronic means? You can pay all federal taxes and state taxes by using FTPS to make all federal taxes and state taxes payable electronically. Follow these instructions to get started.
Can I use my IRA? Can I convert my traditional IRA into a Roth IRA? Generally, you can make a contribution to a traditional IRA. Generally, you can roll your traditional IRA into a Roth IRA and convert that into a Roth IRA. However, it doesn't matter which type of IRA you choose. When you convert a traditional IRA, you do not receive any interest. You must take your traditional IRA distribution either: at age 70½,
at age 59½, or
As part of a distribution after you turn 70½. Once your traditional IRA account balance reaches zero, you must take an early distribution from it.
How do I buy mutual funds with my IRA? You can buy mutual funds (including stock index futures) with your IRA at any time during the year. However, you must report the purchase with any sales you receive that total 1,000 or more during the year.
Can I create my own Form Instruction 1040 Line 44?
What should I do with Form Instruction 1040 Line 44 when it’s complete?
Use this line to record any adjustments necessary for Form 1040 Line 44 to reflect the final instructions.
When reporting a distribution, we generally recommend that you enter in box 3 of Form 1040 Line 46 all amounts deducted as capital losses. If you are using Form 706 to complete a distribution, include all the other income or losses that you deducted to reflect the distributions properly. For more information, see Chapter 17, Refund of Capital Gains and Losses.
Line 31: Social Security and Railroad Retirement Compensation Tax
When filing a joint return, the income, losses, deductions, and credits reported on Form 1040 will be included in the joint return and subject to social security and railroad retirement taxes. We will not report these amounts on Form 1040 or in any other manner. If your account or account numbers on Form 1040 do not match, and you are filing a joint return, you must report your Social Security and railroad retirement taxes on schedules SEV-1 and SEV-2 and on Schedule C (Form 1040), line 29. If you are only filing a joint return, you can't use Schedule SEV-1 or Schedule SEV-2. However, you can use Schedule C to report an excess amount on Form 1040. It is also important to note that the social security tax you pay on the excess amount on Form 1040 are not reported on Form 1040.
Line 31a: Foreign Currency
You can exclude from income up to 2,750. This excludes all Foreign Currency and Other Property Income.
To deduct, you must file Form 114 with your return and include a foreign currency loss on line 31a. For more information on the filing requirements, see Part III, Item 4 of the Instructions for Form 114.
Line 31b: Foreign Currency Gain on Currency-Linked Contracts
You can exclude from income from any foreign currency, currency-linked futures contracts, convertible foreign currency contracts, or currency-linked options that you have for which you receive payment for both consideration that has in U.S. dollars and for which the payment has no U.S. dollar equivalent, or for which you receive a reduction in a U.S. currency equivalent.
How do I get my Form Instruction 1040 Line 44?
S. Individual Income Tax Return with Self-Employment Income), provided he or she meets the eligibility requirements of the ITIN. See IRM 22.214.171.124, ITIN Application Information for Tax Year 2 for more information. For specific information on what happens after an ITIN application is sent, see IRM 126.96.36.199, Form Instructions for 1040-Line (Payer's Responsibilities and Related Processing). If an ITIN application was submitted, what happens next?
If you are a U.S. citizen, you should get Form W-7 (IMPORTANT NOTE: The ITIN application form can be sent to you by E-Filing. If you have not yet processed your Form 1040 on a Form 2063, please contact the CRS and obtain E-Filing instructions.)
(IMPORTANT NOTE: The ITIN application form can be sent to you by E-Filing. If you have not yet processed your Form 1040 on a Form 2063, please contact the CRS and obtain E-Filing instructions.) If you are a non-U.S. citizen for whom the ITIN form was provided, you must: Request to receive Form 1040-Line 44
File the Form 1040 Line 44 when issued
Complete the Instructions for the 1040 Line 44 (Form 1040L) and send to the address shown in the Instructions to 1040Line44 (see paragraph below) and attach a copy of the IRS E-File Certificate, with your SSN/Social Security Number shown.
Use the Form 1040L as you would for a Form 2063.
File your 1040Line44 by 3 p.m. ET on Form 1040 (or by 12 p.m. ET on Form 2063)
Note: An ITIN application may be delayed by delays in processing the Form 1040 (including any changes to the IRS E-File Certificate that were made during the course of processing the ITIN).
The IRS will send you a copy of your Form 1040L/1040 Form 1040 (as soon as practicable), but the processing time on your 1040 L may not be immediately available.
What documents do I need to attach to my Form Instruction 1040 Line 44?
You must attach to your Form Instruction 1040 Line 44 copies of your following documents, unless the documents were issued to you prior to November 9, 1996: A copy of your certificate of naturalization
(If you are a nonresident alien and are not a citizen of the United States on September 30, 1978, you must attach a written statement with your naturalization certificate to show that you are a citizen of the United States and to show that you are not a resident alien.)
A copy of your birth certificate (or copies of the vital records to show U.S. birth in a foreign country)
A certified transcript, statement of admission, or similar document (other than a visa) from a foreign country or a foreign consulate showing all the following: Your date of birth
Your country of birth
Your full name
Your social security number
A description of any changes to your immigration status on or prior to November 9, 1996.
A current, signed and dated Form I-94-R, Application for Alien Relative (Form I-94-RP)
A copy of Form I-765, Application for Permanent Resident Card to be submitted to the U.S. Citizenship and Immigration Services (USCIS)
A copy of Form I-765, Application for Permanent Resident Card to be submitted to the Department of Homeland Security (DHS)
Original or certified copies of the current, signed and dated passport of yourself or of an accompanying alien, if it is the child of either of you
You cannot present the following documents on Form Instruction 1040 Line 44: A United Nations document or other document issued by a diplomatic or consular agent of a foreign country
Government-issued identification, such as a current or former driver's license, nondefective card, or military identification card
A statement from a hospital, doctor, or medical facility that you are a patient that shows that you are a refugee (including a child of a refugee) and has been admitted to the United States as a refugee
Any other documentation that has been furnished to you by an agency of a foreign government, a public or private organization, or a professional school or institution that is accredited. If you do not have any of these documents, then you cannot obtain a Social Security number from your state by submitting this Form Instruction 1040.
What are the different types of Form Instruction 1040 Line 44?
We will discuss each of these types of Form Instruction 1040 Line 44 in more detail below.
How do I complete a Schedule A Form 1040 Line 44 and include a tax shelter contribution from my IRA? Schedule A Form 1040 Line 44 requires a Schedule A (Form 1040) and a Schedule A-EZ (Form 1040-EZ). On Line 44, you can enter “A” along with your IRA (not on Line 5). Enter your IRA contribution amount on Line 54 and your qualifying distributions from your IRA on Line 55. If you have received distributions from your IRA that are includible in your gross income for the year, enter “X” on Line 54. If the distributions do not qualify as a qualified distribution for the year, then you do not have to enter “X” on Line 54. You can enter the entire amount on line 54. You need to know your tax filing status on Line 55 if you are filing a joint return or a married filing jointly. We don't know if you are a non-smoker, non-drinker, or non-drinker.
Can I include a Schedule A-EZ (Form 1040-EZ) along with Schedule A (Form 1040) to reduce the amount that includes a tax shelter contribution I claim as an adjustment to gross income? The answer depends on whether your IRA contribution is required by the IRA rules. To make sure your IRA contribution is a prohibited contribution, you first need to contact your tax advisor. If you don't contact your advisor, you can include your IRA contribution to line 34 as a prohibited contribution. If you have a Section 401k plan, you will need to refer your IRA contribution to your tax advisor.
Line 44. Can I include tax shelter contributions in my Form 1040 line 44 as an adjustment to gross income for a return that is due before or after April 17, 2017 (including extensions)? The IRS hasn't provided guidance on the issue.
Can I include tax shelter contributions in my Form 1040 line 44 if I am a non-resident alien? For information if you can or cannot include tax shelter contributions in your Form 1040 line 44, refer to the Notice from the Internal Revenue Service: Tax Shelter Deduction and Deduction and Exclusion for Amounts Offered in a Roth IRA If you are a non-resident alien, you may be able to exclude some tax shelter contributions in your Form 1040 line 44.
How many people fill out Form Instruction 1040 Line 44 each year?
Each year, approximately 50 million Americans file a tax return. The typical filer files for the first time in late February or March and files again in April.
How much are filers required to pay federal income tax during those two filing seasons?
There are no tax penalties imposed on filers during the filing season. However, if you fail to pay all of your taxes that year and request a credit for any late fees, interest, and penalties, you will receive a refund. If you want to file Form 1040EZ for each filing period with the same year, the filing requirement drops to just Form 1040. To be eligible for a credit for late fees, interest, and penalties you must have paid by the due date of Form 1040, 1040A, or 1040EZ.
Do Forms 1040 Line 46 and 1040 Line 47 have any special rules?
Yes. Form 1040s are only needed for individuals to report the value of the principal residence if they are filing separately. Form 1040L Line 46 is not required for individuals to report the value of any qualifying property.
Do taxpayers reporting capital gains have to pay taxes on their gain?
Yes. If you gain more than 3,000 by selling qualified property on any day during the three-year period of ownership, and you do not get an allowance for your gain in your own income tax return, your tax will generally be equal to your adjusted basis in the property minus the least of the following: your basis in the property plus sales/use taxes paid or accrued during the period of ownership. Your basis is the adjusted basis you used to calculate your gain, if any, plus the excess of the fair market value of the property on the day you purchased it over the adjusted basis, if any.
What is the effect of Section 1226?
Section 1226 prohibits foreign corporations and partnerships from deducting interest they pay on any debt owed by them to shareholders of nonresident corporations or businesses with respect to which they are treated as nonresident for federal income tax purposes, unless the debt is held to finance an acquisition of property held by the nonresident corporation or business. As a result, the IRS has limited the potential tax benefits of ownership of a foreign corporation or partnership interest in qualified property. As of September 16, 2016, Section 1226 is no longer available to foreign corporations, partnerships, or S corporations.
Is there a due date for Form Instruction 1040 Line 44?
There is no due date for Form Instruction 1040 Line 44. You are not required to file these forms until you are due to file your taxes for the tax year 2017.
What forms do I need to complete for Form 1040?
You need to complete the following forms to receive Form 1040.
1040A — Form 1040, Amended U.S. Individual Income Tax Return for 2017, Form 1040NR, No. 1301, Amended U.S. Individual Income Tax Return for 2017, or Form 8889, Amended Individual Income Tax Return for Individuals Electing to Be Treaty Designating Countries for Withholding, plus Schedule A (Individual Income Tax Return).
1040EZ — Form 1040, Estimated Withholding to the Payroll Expense Tax for 2017, plus Schedule A, Form 1040-X, Earned Income Credit and the Qualified Business Income Credit.
1040NR — Return of United States Individual Income Tax Return for Individuals Electing to Be Treaty Designating Countries for Withholding, plus Schedule A (Individual Income Tax Return).
1040NR-EZ — Individual Return of United States Individual Income Tax Return for Individuals Electing to Be Treaty Designating Countries for Withholding, plus Schedule A (Individual Income Tax Return).
1040EZ-NR — Individual Return of United States Individual Income Tax Return for Individuals Electing to be Treaty Designating Countries for Withholding, plus Schedule A (Individual Income Tax Return).
1040A — Form 1040, Amended U.S. Individual Income Tax Return for 2017, plus Schedule A (Individual Income Tax Return).
1040A-EZ — Amended Individual Income Tax Return for Individuals Electing to Be Treaty Designating Countries for Withholding, plus Schedule A (Individual Income Tax Return).
1040A-NR — Amended Individual Income Tax Return for Individuals Electing to Be Treaty Designating Countries for Withholding, plus Schedule A (Individual Income Tax Return).
1531B — Form 5498-A Information Return for Individuals Electing to Be Treaty Designating Countries for Withholding, plus Schedule C (Treaty Designating Country Information).
A 1040A-EZ may be filed after the Form 5498-NR is filed, but the form will be attached as attachments to the Schedule C for each country that the return describes (with all required copies).