Instructions For Form 1040-Ss - U.s. Self-Employment Tax Return (Including The Additional Child Tax Credit For Bona Fide Residents Of Puerto Rico) - Internal Revenue Service - 2005 Page 5

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Additional Child Tax Credit Worksheet—Part II, Line 3
Keep for Your Records
1. Do you have three or more qualifying children?
No. Stop. You cannot claim the credit.
Yes. Go to line 2.
2. Number of qualifying children: _______× $1,000. Enter the result . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Enter the amount from Part II, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Enter the amount shown below for your filing status . . . . . . . . . . . . . . . . . . .
4.
Married filing jointly — $110,000
Single — $75,000
Married filing separately — $55,000
5. Is the amount on line 3 more than the amount on line 4?
No. Leave line 5 blank. Enter -0- on line 6.
Yes. Subtract line 4 from line 3. If the result is not a multiple of
$1,000, increase it to the next multiple of $1,000 (for example,
increase $425 to $1,000, increase $1,025 to $2,000, etc.) . . . . . . . . . . . .
5.
6. Multiply the amount on line 5 by 5% (.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Is the amount on line 2 more than the amount on line 6?
No. Stop. You cannot claim the credit.
Yes. Subtract line 6 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Enter one-half of the amount from Part V, line 12, here . . . . . . . . . . . . . . . .
8.
9. Enter the total of any:
Amount from Part II, line 2, plus
Employee social security and Medicare tax on tips not reported to
employer and shown on the dotted line next to Part I, line 5, plus
Uncollected employee social security and Medicare tax shown on the
dotted line next to Part I, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Add lines 8 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the amount, if any, from Part I, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Is the amount on line 10 more than the amount on line 11?
No. Stop. You cannot claim the credit.
Yes. Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Additional child tax credit. Enter the smaller of line 7 or line 12 here and on
Form 1040-SS, Part II, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
any guaranteed payments for services
of the month in which he or she died.
Other Income and Losses
or the use of capital. However, if you
See section 1402(f).
Included in Net Earnings
were a limited partner, include only
If you were married and both you
From Self-Employment
guaranteed payments for services you
and your spouse were partners in a
actually rendered to or on behalf of the
partnership, each of you must pay SE
1. Rental income from a farm if, as
partnership.
tax on your own share of the
landlord, you materially participated in
partnership income. If you are filing
If you were a general partner, reduce
the production or management of the
jointly, you must each complete a
Part V, lines 1 and 2, for any section
production of farm products on this
separate Part V. Otherwise, each of
179 expense deduction, oil or gas
land. This income is farm earnings. To
you must file a separate Form 1040-SS.
depletion, and unreimbursed
determine if you materially participated
partnership expenses.
in farm management or production, do
Share Farming
not consider the activities of any agent
If your partnership was engaged
You are considered self-employed if
who acted for you. The material
solely in the operation of a group
you produced crops or livestock on
participation tests are explained in
investment program, earnings from the
someone else’s land for a share of the
Pub. 225.
operation are not self-employment
crops or livestock produced (or a share
earnings for either the general or limited
2. Cash or a payment-in-kind from
of the proceeds from the sale of them).
partners.
the Department of Agriculture for
For details, see Pub. 225.
participating in a land diversion
If a partner died and the partnership
program.
continued, include in self-employment
income the deceased partner’s
3. Payments for the use of rooms or
distributive share of the partnership’s
other space when you also provided
ordinary income or loss through the end
substantial services. Examples are
-5-

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