2006 Instruction 1040 Schedule J - Income Averaging For Farmers And Fishermen - Department Of Treasury - 2006 Page 7
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102004 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 Schedule J, line 2, does not include any net capital gain.
•
You (a) entered qualified dividends on your 2004 Form 1040, line 9b (or your 2004 Form 1040A, line 9b), (b) entered
capital gain distributions directly on your 2004 Form 1040, line 13 (or your 2004 Form 1040A, line 10) and checked the box
on that line, or (c) filed Schedule D in 2004 and you answered “Yes” on lines 17 and 20 of that Schedule D.
1. Amount from Schedule J, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Amount from Form 1040, line 9b (or Form 1040A, line
9b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Did you file Schedule D in 2004?
Yes. Enter the smaller of line 15 or 16 of your
}
2004 Schedule D, but do not enter less than
-0-
3.
No. Enter the amount from Form 1040, line 13 (or
Form 1040A, line 10)
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Amount, if any, from your 2004 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 the smaller of:
•
The amount on line 1, or
}
•
$29,050 if single or married filing separately for 2004,
. . . . . . . . . . . 8.
$58,100 if married filing jointly or qualifying widow(er),
$38,900 if head of household.
9. Is the amount on line 7 equal to or more than the amount on line 8?
Yes. Skip lines 9 through 11; go to line 12 and check the ‘‘No’’ box.
No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Multiply line 10 by 5% (.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Are the amounts on lines 6 and 10 the same?
Yes. Skip lines 12 through 15; go to line 16.
No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . . 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 2004 Tax Rate Schedules on page J-6 . . . . . . . . . . . 16.
17. Add lines 11, 15, and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Figure the tax on the amount on line 1. Use the 2004 Tax Rate Schedules on page J-6 . . . . . . . . . . . 18.
19. Tax. Enter the smaller of line 17 or line 18 here and on Schedule J, line 12 . . . . . . . . . . . . . . . . . . . 19.
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