Form 1040 Instructions - 2015 Page 31
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105 2015 Form 1040—Lines 21 Through 24
(b) they were not included in a qualified
Life insurance proceeds received
garten through grade 12 teacher, instruc-
rollover. See Pub. 970. Nontaxable dis-
because of someone's death (other than
tor, counselor, principal, or aide who
tributions from these accounts, including
from certain employer-owned life insur-
worked in a school for at least 900 hours
rollovers, do not have to be reported on
ance contracts).
during a school year.
Form 1040.
Gifts and bequests. However, if
Qualified expenses include ordinary
you received a gift or bequest from a
You may have to pay an addi-
and necessary expenses paid in connec-
foreign person of more than $15,601,
!
tional tax if you received a tax-
tion with books, supplies, equipment
you may have to report information
able distribution from a Cover-
(including computer equipment, soft-
CAUTION
about it on Form 3520, Part IV. See the
dell ESA or a QTP. See the Instructions
ware, and services), and other materials
Instructions for Form 3520.
for Form 5329.
used in the classroom. An ordinary ex-
Net operating loss (NOL) deduction.
pense is one that is common and accep-
Taxable distributions from a health
Include on line 21 any NOL deduction
ted in your educational field. A necessa-
savings account (HSA) or an Archer
from an earlier year. Subtract it from
ry expense is one that is helpful and ap-
MSA. Distributions from these accounts
any income on line 21 and enter the re-
propriate for your profession as an edu-
may be taxable if (a) they are more than
sult. If the result is less than zero, enter
cator. An expense does not have to be
the unreimbursed qualified medical ex-
it in parentheses. On the dotted line next
required to be considered necessary.
penses of the account beneficiary or ac-
to line 21, enter “NOL” and show the
count holder in 2015, and (b) they were
Qualified expenses do not include ex-
amount of the deduction in parentheses.
not included in a qualified rollover. See
penses for home schooling or for non-
See Pub. 536 for details.
Pub. 969.
athletic supplies for courses in health or
Medicaid waiver payments to care
You may have to pay an addi-
physical education.
provider. Certain
Medicaid
waiver
!
tional tax if you received a tax-
You must reduce your qualified ex-
payments you received for caring for
able distribution from an HSA
CAUTION
penses by the following amounts.
someone living in your home with you
or an Archer MSA. See the Instructions
Excludable U.S. series EE and I
may be nontaxable. If these payments
for Form 8889 for HSAs or the Instruc-
savings bond interest from Form 8815.
were incorrectly reported to you in
tions for Form 8853 for Archer MSAs.
box 1 of Form(s) W-2, and you can't get
Nontaxable qualified tuition pro-
Taxable
distributions
from
an
a corrected Form W-2, include the
gram earnings or distributions.
ABLE account. Distributions from this
amount on line 7. On line 21, subtract
Any nontaxable distribution of
type of account may be taxable if (a)
the nontaxable amount of the payments
Coverdell education savings account
they are more than the designated bene-
from any income on line 21 and enter
earnings.
ficiary's qualified disability expenses,
the result. If the result is less than zero,
Any reimbursements you received
and (b) they were not included in a
enter it in parentheses. Enter “Notice
for these expenses that were not reported
qualified rollover. Enter “ABLE” and
2014-7” and the nontaxable amount on
to you in box 1 of your Form W-2.
the taxable amount on the dotted line
the dotted line next to line 21. For more
next to line 21. See Pub. 907 for more
For more details, use
Tax Topic 458
information about these payments, see
information.
or see Pub. 529.
Pub. 525.
You may have to pay an addi-
Line 24
!
tional tax if you received a tax-
Adjusted Gross
able
distribution
from
an
Certain Business Expenses
CAUTION
Income
ABLE account. See the Instructions for
of Reservists, Performing
Form 5329.
Artists, and Fee-Basis
Line 23
Nontaxable income. Do not report any
Government Officials
nontaxable income on line 21. Examples
Educator Expenses
of nontaxable income include the fol-
Include the following deductions on
lowing.
line 24.
If you were an eligible educator in 2015,
Child support.
Certain business expenses of Na-
you can deduct on line 23 up to $250 of
Payments you received to help you
tional Guard and reserve members who
qualified expenses you paid in 2015. If
pay your mortgage loan under the HFA
traveled more than 100 miles from home
you and your spouse are filing jointly
Hardest Hit Fund or the Emergency
to perform services as a National Guard
and both of you were eligible educators,
Homeowners' Loan Program or similar
or reserve member.
the maximum deduction is $500. How-
state program.
Performing-arts-related
expenses
ever, neither spouse can deduct more
Any Pay-for-Performance Success
as a qualified performing artist.
than $250 of his or her qualified expen-
Payments that reduce the principal bal-
Business expenses of fee-basis
ses on line 23. You may be able to de-
ance of your home mortgage under the
state or local government officials.
duct expenses that are more than the
Home Affordable Modification Pro-
$250 (or $500) limit on Schedule A,
For more details, see Form 2106 or
gram.
line 21. An eligible educator is a kinder-
2106-EZ.
-31-
Need more information or forms? Visit IRS.gov.
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