Instructions For Form 1040 - U.s. Individual Income Tax Return - 2016 Page 31

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2017 Form 1040—Lines 21 and 23
IRS.gov and enter “canceled debt” or
next to line 21. See Pub. 907 for more
Olympic and Paralympic medals and the
“foreclosure” in the search box.
information.
amount of United States Olympic Com-
Taxable part of disaster relief pay-
You may have to pay an addi-
mittee prize money you receive on ac-
!
ments. See Pub. 525 to figure the taxa-
tional tax if you received a tax-
count of your participation in the Olym-
ble part, if any. If any of your disaster
able distribution from an ABLE
pic or Paralympic Games may be
CAUTION
relief payment is taxable, attach a state-
account. See the Instructions for Form
nontaxable. These amounts should be re-
ment showing the total payment re-
5329.
ported to you in box 3 of Form
ceived and how you figured the taxable
1099-MISC. To see if these amounts are
Nontaxable income. Don’t report any
part.
nontaxable, first figure your adjusted
nontaxable income on line 21. Examples
Taxable distributions from a Cov-
gross income including the amount of
of nontaxable income include the fol-
erdell education savings account (ESA)
your medals and prize money. If your
lowing.
or a qualified tuition program (QTP).
adjusted gross income is not more than
Child support.
Distributions from these accounts may
$1,000,000 ($500,000 if married filing
Payments you received to help you
be taxable if (a) in the case of distribu-
separately), these amounts are nontaxa-
pay your mortgage loan under the HFA
tions from a QTP, they are more than
ble and you should include the amount
Hardest Hit Fund.
the qualified higher education expenses
in box 3 of Form 1099-MISC on line 21,
Any Pay-for-Performance Success
of the designated beneficiary in 2017 or,
then subtract it by including it on line 36
Payments that reduce the principal bal-
in the case of distributions from an ESA,
along with any other write-in adjust-
ance of your home mortgage under the
they are more than the qualified educa-
ments. On the dotted line next to line 36,
Home Affordable Modification Pro-
tion expenses of the designated benefi-
enter the nontaxable amount and identi-
gram.
ciary in 2017, and (b) they were not in-
fy as “USOC.”
Life insurance proceeds received
cluded in a qualified rollover. Nontaxa-
because of someone's death (other than
ble distributions from these accounts
Adjusted Gross
from certain employer-owned life insur-
don’t have to be reported on Form 1040.
ance contracts).
This includes rollovers and qualified
Income
Gifts and bequests. However, if
higher education expenses refunded to a
you received a gift or bequest from a
student from a QTP that were recontrib-
foreign person of more than $15,797,
Line 23
uted to a QTP with the same designated
you may have to report information
beneficiary within 60 days after the date
about it on Form 3520, Part IV. See the
of refund. See Pub. 970.
Educator Expenses
Instructions for Form 3520.
You may have to pay an addi-
If you were an eligible educator in 2017,
!
tional tax if you received a tax-
Net operating loss (NOL) deduction.
you can deduct on line 23 up to $250 of
able distribution from a Cover-
CAUTION
Include on line 21 any NOL deduction
qualified expenses you paid in 2017. If
dell ESA or a QTP. See the Instructions
from an earlier year. Subtract it from
you and your spouse are filing jointly
for Form 5329.
any income on line 21 and enter the re-
and both of you were eligible educators,
Taxable distributions from a health
sult. If the result is less than zero, enter
the maximum deduction is $500. How-
it in parentheses. On the dotted line next
savings account (HSA) or an Archer
ever, neither spouse can deduct more
MSA. Distributions from these accounts
to line 21, enter “NOL” and show the
than $250 of his or her qualified expen-
may be taxable if (a) they are more than
amount of the deduction in parentheses.
ses on line 23. You may be able to de-
See Pub. 536 for details.
the unreimbursed qualified medical ex-
duct expenses that are more than the
penses of the account beneficiary or ac-
$250 (or $500) limit on Schedule A,
Medicaid waiver payments to care
count holder in 2017, and (b) they were
line 21. An eligible educator is a kinder-
provider. Certain
Medicaid
waiver
not included in a qualified rollover. See
garten through grade 12 teacher, instruc-
payments you received for caring for
Pub. 969.
tor, counselor, principal, or aide who
someone living in your home with you
You may have to pay an addi-
worked in a school for at least 900 hours
may be nontaxable. If these payments
!
tional tax if you received a tax-
during a school year.
were incorrectly reported to you in
able distribution from an HSA
CAUTION
box 1 of Form(s) W-2, and you can't get
Qualified expenses include ordinary
or an Archer MSA. See the Instructions
a corrected Form W-2, include the
and necessary expenses paid:
for Form 8889 for HSAs or the Instruc-
amount on line 7. On line 21, subtract
For
professional
development
tions for Form 8853 for Archer MSAs.
the nontaxable amount of the payments
courses you have taken related to the
Taxable distributions from an
from any income on line 21 and enter
curriculum you teach or to the students
ABLE account. Distributions from this
the result. If the result is less than zero,
you teach, or
type of account may be taxable if (a)
enter it in parentheses. Enter “Notice
In connection with books, sup-
they are more than the designated bene-
2014-7” and the nontaxable amount on
plies, equipment (including computer
ficiary's qualified disability expenses,
the dotted line next to line 21. For more
equipment, software, and services), and
and (b) they were not included in a
information about these payments, see
other materials used in the classroom.
qualified rollover. Enter “ABLE” and
Pub. 525.
An ordinary expense is one that is
the taxable amount on the dotted line
Olympic and Paralympic medals and
common and accepted in your educa-
USOC prize money. The value of
tional field. A necessary expense is one
-31-
Need more information or forms? Visit IRS.gov.

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