Instructions For Schedule 2 (Form 1040a) - 2007 (Page 4 of 4) in pdf

Instructions For Schedule 2 (Form 1040a) - 2007 Page 4

reported to you on a Form W-2, (b) any amount paid to an inmate in

Special Situations

a penal institution for work, and (c) any amount received as a pen-

If you are filing a joint return, disregard community property laws.

sion or annuity from a nonqualified deferred compensation plan or a

If your spouse died in 2007, see Pub. 503. If your spouse was a

nongovernmental section 457(b) plan. This amount may be re-

student or disabled in 2007, see the instructions for line 5.

ported in box 11 of your Form W-2. If you received such an amount

but box 11 is blank, contact your employer for the amount received

Line 19

as a pension or annuity.

If your filing status is married filing separately, see Married persons

2. Nontaxable combat pay if you elect to include it in earned

filing separate returns on page 2. Are you considered unmarried

income. However, including this income will only give you a larger

under that rule?

exclusion if your (or your spouse’s) other earned income is less than

the amount entered on line 17. To make the election, include all of

❏

Yes.

Enter your earned income (from line 18) on line

your nontaxable combat pay in the amount you enter on line 18 (line

19 for your spouse if filing jointly). If you are filing a joint return

19. On line 21, enter the smaller of the amount

and both you and your spouse received nontaxable combat pay, you

from line 20 or $5,000.

can each make your own election. The amount of your nontaxable

❏

No.

Enter your spouse’s earned income on line 19. If

combat pay should be shown in box 12 of Form(s) W-2 with

your spouse was a student or disabled in 2007,

code Q.

see the instructions for line 5. On line 21, enter

the smaller of the amount from line 20 or $2,500.

You can choose to include your nontaxable combat pay

in earned income when figuring your exclusion or de-

TIP

duction, even if you choose not to include it in earned

income for the earned income credit (EIC) or the credit

for child and dependent care expenses.

For purposes of line 18, earned income does not include

any dependent care benefits shown on line 12.

Sch. 2-4

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Instructions For Schedule 2 (Form 1040a) - 2007 Page 4

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