Instructions For Form 1040 - U.s. Individual Income Tax Return - 2017 Page 21
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107 2017 Form 1040—Line 7
that you either owned when the case be-
If you have to add two or more
Income
gan or that you acquired after the case
amounts to figure the amount to enter on
began and before the case was closed,
a line, include cents when adding the
dismissed, or converted to a case under a
amounts and round off only the total.
Generally, you must report all income
different chapter.
except income that is exempt from tax
Line 7
Because this income is taxable to the
by law. For details, see the following in-
estate, don’t include this income on your
structions, especially the instructions for
Wages, Salaries, Tips, etc.
own individual income tax return. The
lines 7 through 21. Also see Pub. 525.
only exception is for purposes of figur-
Enter the total of your wages, salaries,
Foreign-Source Income
ing your self-employment tax. For that
tips, etc. If a joint return, also include
purpose, you must take into account all
your spouse's income. For most people,
You must report unearned income, such
your self-employment income for the
the amount to enter on this line should
as interest, dividends, and pensions,
year from services performed both be-
from sources outside the United States
be shown in box 1 of their Form(s) W-2.
fore and after the beginning of the case.
But the following types of income also
unless exempt by law or a tax treaty.
Also, you (or the trustee, if one is ap-
You also must report earned income,
must be included in the total on line 7.
pointed) must allocate between you and
such as wages and tips, from sources
All wages received as a household
the bankruptcy estate the wages, salary,
employee. An employer isn’t required to
outside the United States.
or other compensation and withheld in-
provide a Form W-2 to you if he or she
If you worked abroad, you may be
come tax reported to you on Form W-2.
paid you wages of less then $2,000 in
able to exclude part or all of your for-
A similar allocation is required for in-
2017. If you received wages as a house-
eign earned income. For details, see
come and withheld income tax reported
hold employee and you didn’t receive a
Pub. 54 and Form 2555 or 2555-EZ.
to you on Forms 1099. You also must
Form W-2 because an employer paid
Foreign retirement plans. If you were
include a statement that indicates you
you less than $2,000 in 2017, enter
a beneficiary of a foreign retirement
filed a chapter 11 case and that explains
“HSH” and the amount not reported to
plan, you may have to report the undis-
how income and withheld income tax re-
you on a Form W-2 in the space to the
tributed income earned in your plan.
ported to you on Forms W-2 and 1099
left of line 7. For information on em-
However, if you were the beneficiary of
are allocated between you and the estate.
ployment taxes for household employ-
a Canadian registered retirement plan,
For more details, including acceptable
ees, see
Tax Topic
756.
see Rev. Proc. 2014-55, 2014-44 I.R.B.
allocation methods, see Notice 2006-83,
Tip income you didn't report to
753,
available
at
IRS.gov//irb/
2006-40 I.R.B. 596, available at
your employer. This should include any
2014-44_IRB/ar10.html, to find out if
IRS.gov/irb/2006-40_IRB/ar12.html.
allocated tips shown in box 8 on your
you can elect to defer tax on the undis-
Community Property States
Form(s) W-2 unless you can prove that
tributed income.
your unreported tips are less than the
Community property states include Ari-
amount in box 8. Allocated tips aren't in-
Report distributions from foreign
zona, California, Idaho, Louisiana, Ne-
cluded as income in box 1. See Pub. 531
pension plans on lines 16a and 16b.
vada, New Mexico, Texas, Washington,
for more details. Also include the value
Foreign accounts and trusts. You
and Wisconsin. If you and your spouse
of any noncash tips you received, such
must complete Part III of Schedule B if
lived in a community property state, you
as tickets, passes, or other items of val-
you:
usually must follow state law to deter-
ue. Although you don’t report these non-
Had a foreign account, or
mine what is community income and
cash tips to your employer, you must re-
Received a distribution from, or
what is separate income. For details, see
port them on line 7.
were a grantor of, or a transferor to, a
Form 8958 and Pub. 555.
You may owe social security
foreign trust.
Nevada, Washington, and California
!
and Medicare or railroad re-
Foreign financial assets. If you had
domestic partners. A registered do-
tirement (RRTA) tax on unre-
CAUTION
foreign financial assets in 2017, you
mestic partner in Nevada, Washington,
ported tips. See the instructions for
may have to file Form 8938. See Form
or California generally must report half
line 58.
8938 and its instructions.
the combined community income of the
individual and his or her domestic part-
Chapter 11 Bankruptcy
Dependent care benefits, which
ner. See Form 8958 and Pub. 555.
should be shown in box 10 of your
Cases
Rounding Off to Whole
Form(s) W-2. But first complete Form
If you are a debtor in a chapter 11 bank-
2441 to see if you can exclude part or all
Dollars
ruptcy case, income taxable to the bank-
of the benefits.
ruptcy estate and reported on the estate's
You can round off cents to whole dollars
Employer-provided adoption bene-
income tax return includes:
on your return and schedules. If you do
fits, which should be shown in box 12 of
Earnings from services you per-
round to whole dollars, you must round
your Form(s) W-2 with code T. But see
formed after the beginning of the case
all amounts. To round, drop amounts un-
the Instructions for Form 8839 to find
(both wages and self-employment in-
der 50 cents and increase amounts from
out if you can exclude part or all of the
come), and
50 to 99 cents to the next dollar. For ex-
benefits. You also may be able to ex-
Income from property described in
ample, $1.39 becomes $1 and $2.50 be-
clude amounts if you adopted a child
section 541 of title 11 of the U.S. Code
comes $3.
-21-
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