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1040nr ez 16. 1040nr ez   Reporting Gains and Losses Table of Contents What's New Introduction Useful Items - You may want to see: Reporting Capital Gains and Losses Exception 1. 1040nr ez Exception 2. 1040nr ez File Form 1099-B or Form 1099-S with the IRS. 1040nr ez Capital Losses Capital Gain Tax Rates What's New Maximum capital gain rates. 1040nr ez . 1040nr ez  For 2013, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. 1040nr ez Introduction This chapter discusses how to report capital gains and losses from sales, exchanges, and other dispositions of investment property on Form 8949 and Schedule D (Form 1040). 1040nr ez The discussion includes the following topics. 1040nr ez How to report short-term gains and losses. 1040nr ez How to report long-term gains and losses. 1040nr ez How to figure capital loss carryovers. 1040nr ez How to figure your tax on a net capital gain. 1040nr ez If you sell or otherwise dispose of property used in a trade or business or for the production of income, see Publication 544, Sales and Other Dispositions of Assets, before completing Schedule D (Form 1040). 1040nr ez Useful Items - You may want to see: Publication 537 Installment Sales 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses Form (and Instructions) 4797 Sales of Business Property 6252 Installment Sale Income 8582 Passive Activity Loss Limitations 8949 Sales and Other Dispositions of Capital Assets Schedule D (Form 1040) Capital Gains and Losses Reporting Capital Gains and Losses Generally, report capital gains and losses on Form 8949. 1040nr ez Complete Form 8949 before you complete line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form 1040). 1040nr ez Use Form 8949 to report: The sale or exchange of a capital asset not reported on another form or schedule; Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit; and Nonbusiness bad debts. 1040nr ez Use Schedule D (Form 1040): To figure the overall gain or loss from transactions reported on Form 8949; To report a gain from Form 6252 or Part I of Form 4797; To report a gain or loss from Form 4684, 6781, or 8824; To report capital gain distributions not reported directly on Form 1040 or Form 1040A; To report a capital loss carryover from the previous tax year to the current tax year; To report your share of a gain or (loss) from a partnership, S corporation, estate, or trust; To report transactions reported to you on a Form 1099-B (or substitute statement) showing basis was reported to the IRS and to which none of the Form 8949 adjustments or codes apply; and To report undistributed long-term capital gains from Form 2439. 1040nr ez On Form 8949, enter all sales and exchanges of capital assets, including stocks, bonds, etc. 1040nr ez , and real estate (if not reported on Form 4684, 4797, 6252, 6781, 8824, or line 1a or 8a of Schedule D). 1040nr ez Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. 1040nr ez Report short-term gains or losses in Part I. 1040nr ez Report long-term gains or losses in Part II. 1040nr ez Use as many Forms 8949 as you need. 1040nr ez Exceptions to filing Form 8949 and Schedule D (Form 1040). 1040nr ez   There are certain situations where you may not have to file Form 8949 and/or Schedule D (Form 1040). 1040nr ez Exception 1. 1040nr ez   You do not have to file Form 8949 or Schedule D (Form 1040) if you have no capital losses and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements). 1040nr ez (If any Form(s) 1099-DIV (or substitute statements) you receive have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain), you do not qualify for this exception. 1040nr ez ) If you qualify for this exception, report your capital gain distributions directly on line 13 of Form 1040 (and check the box on line 13). 1040nr ez Also use the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 instructions to figure your tax. 1040nr ez You can report your capital gain distributions on line 10 of Form 1040A, instead of on Form 1040, if none of the Forms 1099-DIV (or substitute statements) you received have an amount in box 2b, 2c, or 2d, and you do not have to file Form 1040. 1040nr ez Exception 2. 1040nr ez   You must file Schedule D (Form 1040), but generally do not have to file Form 8949, if Exception 1 does not apply and your only capital gains and losses are: Capital gain distributions; A capital loss carryover; A gain from Form 2439 or 6252 or Part I of Form 4797; A gain or loss from Form 4684, 6781, or 8824; A gain or loss from a partnership, S corporation, estate, or trust; or Gains and losses from transactions for which you received a Form 1099-B (or substitute statement) that shows the basis was reported to the IRS and for which you do not need to make any adjustments in column (g) of Form 8949 or enter any codes in column (f) of Form 8949. 1040nr ez Installment sales. 1040nr ez   You cannot use the installment method to report a gain from the sale of stock or securities traded on an established securities market. 1040nr ez You must report the entire gain in the year of sale (the year in which the trade date occurs). 1040nr ez Passive activity gains and losses. 1040nr ez    If you have gains or losses from a passive activity, you may also have to report them on Form 8582. 1040nr ez In some cases, the loss may be limited under the passive activity rules. 1040nr ez Refer to Form 8582 and its instructions for more information about reporting capital gains and losses from a passive activity. 1040nr ez Form 1099-B transactions. 1040nr ez   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B or substitute statement from the broker. 1040nr ez Use the Form 1099-B or the substitute statement to complete Form 8949. 1040nr ez If you sold a covered security in 2013, your broker should send you a Form 1099-B (or substitute statement) that shows your basis. 1040nr ez This will help you complete Form 8949. 1040nr ez Generally, a covered security is a security you acquired after 2010. 1040nr ez   Report the gross proceeds shown in box 2a of Form 1099-B as the sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. 1040nr ez However, if the broker advises you, in box 2a of Form 1099-B, that gross proceeds (sales price) less commissions and option premiums were reported to the IRS, enter that net sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. 1040nr ez    Include in column (g) any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (d). 1040nr ez If you include an expense of sale in column (g), enter “E” in column (f). 1040nr ez Form 1099-CAP transactions. 1040nr ez   If a corporation in which you own stock has had a change in control or a substantial change in capital structure, you should receive Form 1099-CAP or a substitute statement from the corporation. 1040nr ez Use the Form 1099-CAP or substitute statement to fill in Form 8949. 1040nr ez If your computations show that you would have a loss because of the change, do not enter any amounts on Form 8949 or Schedule D (Form 1040). 1040nr ez You cannot claim a loss on Schedule D (Form 1040) as a result of this transaction. 1040nr ez   Report the aggregate amount received shown in box 2 of Form 1099-CAP as the sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. 1040nr ez Form 1099-S transactions. 1040nr ez   If you sold or traded reportable real estate, you generally should receive from the real estate reporting person a Form 1099-S showing the gross proceeds. 1040nr ez    “Reportable real estate” is defined as any present or future ownership interest in any of the following: Improved or unimproved land, including air space; Inherently permanent structures, including any residential, commercial, or industrial building; A condominium unit and its accessory fixtures and common elements, including land; and Stock in a cooperative housing corporation (as defined in section 216 of the Internal Revenue Code). 1040nr ez   A “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. 1040nr ez   Your Form 1099-S will show the gross proceeds from the sale or exchange in box 2. 1040nr ez See the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040) for how to report these transactions and include them in Part I or Part II of Form 8949 as appropriate. 1040nr ez However, report like-kind exchanges on Form 8824 instead. 1040nr ez   It is unlawful for any real estate reporting person to separately charge you for complying with the requirement to file Form 1099-S. 1040nr ez Nominees. 1040nr ez   If you receive gross proceeds as a nominee (that is, the gross proceeds are in your name but actually belong to someone else), see the Instructions for Form 8949 for how to report these amounts on Form 8949. 1040nr ez File Form 1099-B or Form 1099-S with the IRS. 1040nr ez   If you received gross proceeds as a nominee in 2013, you must file a Form 1099-B or Form 1099-S for those proceeds with the IRS. 1040nr ez Send the Form 1099-B or Form 1099-S with a Form 1096, Annual Summary and Transmittal of U. 1040nr ez S. 1040nr ez Information Returns, to your Internal Revenue Service Center by February 28, 2014 (March 31, 2014, if you file Form 1099-B or Form 1099-S electronically). 1040nr ez Give the actual owner of the proceeds Copy B of the Form 1099-B or Form 1099-S by February 18, 2014. 1040nr ez On Form 1099-B, you should be listed as the “Payer. 1040nr ez ” The other owner should be listed as the “Recipient. 1040nr ez ” On Form 1099-S, you should be listed as the “Filer. 1040nr ez ” The other owner should be listed as the “Transferor. 1040nr ez ” You do not have to file a Form 1099-B or Form 1099-S to show proceeds for your spouse. 1040nr ez For more information about the reporting requirements and the penalties for failure to file (or furnish) certain information returns, see the General Instructions for Certain Information Returns. 1040nr ez If you are filing electronically see Publication 1220. 1040nr ez Sale of property bought at various times. 1040nr ez   If you sell a block of stock or other property that you bought at various times, report the short-term gain or loss from the sale on one row in Part I of Form 8949, and the long-term gain or loss on one row in Part II of Form 8949. 1040nr ez Write “Various” in column (b) for the “Date acquired. 1040nr ez ” Sale expenses. 1040nr ez    On Form 8949, include in column (g) any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (d). 1040nr ez If you include an expense of sale in column (g), enter “E” in column (f). 1040nr ez   For more information about adjustments to basis, see chapter 13. 1040nr ez Short-term gains and losses. 1040nr ez   Capital gain or loss on the sale or trade of investment property held 1 year or less is a short-term capital gain or loss. 1040nr ez You report it in Part I of Form 8949. 1040nr ez   You combine your share of short-term capital gain or loss from partnerships, S corporations, estates, and trusts, and any short-term capital loss carryover, with your other short-term capital gains and losses to figure your net short-term capital gain or loss on line 7 of Schedule D (Form 1040). 1040nr ez Long-term gains and losses. 1040nr ez    A capital gain or loss on the sale or trade of investment property held more than 1 year is a long-term capital gain or loss. 1040nr ez You report it in Part II of Form 8949. 1040nr ez   You report the following in Part II of Schedule D (Form 1040): Undistributed long-term capital gains from a mutual fund (or other regulated investment company) or real estate investment trust (REIT); Your share of long-term capital gains or losses from partnerships, S corporations, estates, and trusts; All capital gain distributions from mutual funds and REITs not reported directly on line 10 of Form 1040A or line 13 of Form 1040; and Long-term capital loss carryovers. 1040nr ez    The result after combining these items with your other long-term capital gains and losses is your net long-term capital gain or loss (Schedule D (Form 1040), line 15). 1040nr ez Total net gain or loss. 1040nr ez   To figure your total net gain or loss, combine your net short-term capital gain or loss (Schedule D (Form 1040), line 7) with your net long-term capital gain or loss (Schedule D (Form 1040), line 15). 1040nr ez Enter the result on Schedule D (Form 1040), Part III, line 16. 1040nr ez If your losses are more than your gains, see Capital Losses , next. 1040nr ez If both lines 15 and 16 of your Schedule D (Form 1040) are gains and your taxable income on your Form 1040 is more than zero, see Capital Gain Tax Rates , later. 1040nr ez Capital Losses If your capital losses are more than your capital gains, you can claim a capital loss deduction. 1040nr ez Report the amount of the deduction on line 13 of Form 1040, in parentheses. 1040nr ez Limit on deduction. 1040nr ez   Your allowable capital loss deduction, figured on Schedule D (Form 1040), is the lesser of: $3,000 ($1,500 if you are married and file a separate return); or Your total net loss as shown on line 16 of Schedule D (Form 1040). 1040nr ez   You can use your total net loss to reduce your income dollar for dollar, up to the $3,000 limit. 1040nr ez Capital loss carryover. 1040nr ez   If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. 1040nr ez If part of the loss is still unused, you can carry it over to later years until it is completely used up. 1040nr ez   When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year. 1040nr ez   When you carry over a loss, it remains long term or short term. 1040nr ez A long-term capital loss you carry over to the next tax year will reduce that year's long-term capital gains before it reduces that year's short-term capital gains. 1040nr ez Figuring your carryover. 1040nr ez   The amount of your capital loss carryover is the amount of your total net loss that is more than the lesser of: Your allowable capital loss deduction for the year; or Your taxable income increased by your allowable capital loss deduction for the year and your deduction for personal exemptions. 1040nr ez   If your deductions are more than your gross income for the tax year, use your negative taxable income in computing the amount in item (2). 1040nr ez    Complete the Capital Loss Carryover Worksheet in the Instructions for Schedule D or Publication 550 to determine the part of your capital loss that you can carry over. 1040nr ez Example. 1040nr ez Bob and Gloria sold securities in 2013. 1040nr ez The sales resulted in a capital loss of $7,000. 1040nr ez They had no other capital transactions. 1040nr ez Their taxable income was $26,000. 1040nr ez On their joint 2013 return, they can deduct $3,000. 1040nr ez The unused part of the loss, $4,000 ($7,000 − $3,000), can be carried over to 2014. 1040nr ez If their capital loss had been $2,000, their capital loss deduction would have been $2,000. 1040nr ez They would have no carryover. 1040nr ez Use short-term losses first. 1040nr ez   When you figure your capital loss carryover, use your short-term capital losses first, even if you incurred them after a long-term capital loss. 1040nr ez If you have not reached the limit on the capital loss deduction after using the short-term capital losses, use the long-term capital losses until you reach the limit. 1040nr ez Decedent's capital loss. 1040nr ez    A capital loss sustained by a decedent during his or her last tax year (or carried over to that year from an earlier year) can be deducted only on the final income tax return filed for the decedent. 1040nr ez The capital loss limits discussed earlier still apply in this situation. 1040nr ez The decedent's estate cannot deduct any of the loss or carry it over to following years. 1040nr ez Joint and separate returns. 1040nr ez   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. 1040nr ez However, if you and your spouse once filed a joint return and are now filing separate returns, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. 1040nr ez Capital Gain Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. 1040nr ez These lower rates are called the maximum capital gain rates. 1040nr ez The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. 1040nr ez For 2013, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. 1040nr ez See Table 16-1 for details. 1040nr ez If you figure your tax using the maximum capital gain rate and the regular tax computation results in a lower tax, the regular tax computation applies. 1040nr ez Example. 1040nr ez All of your net capital gain is from selling collectibles, so the capital gain rate would be 28%. 1040nr ez If you are otherwise subject to a rate lower than 28%, the 28% rate does not apply. 1040nr ez Investment interest deducted. 1040nr ez   If you claim a deduction for investment interest, you may have to reduce the amount of your net capital gain that is eligible for the capital gain tax rates. 1040nr ez Reduce it by the amount of the net capital gain you choose to include in investment income when figuring the limit on your investment interest deduction. 1040nr ez This is done on the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet. 1040nr ez For more information about the limit on investment interest, see Interest Expenses in chapter 3 of Publication 550. 1040nr ez Table 16-1. 1040nr ez What Is Your Maximum Capital Gain Rate? IF your net capital gain is from . 1040nr ez . 1040nr ez . 1040nr ez THEN your  maximum capital gain rate is . 1040nr ez . 1040nr ez . 1040nr ez a collectibles gain 28% an eligible gain on qualified small business stock minus the section 1202 exclusion 28% an unrecaptured section 1250 gain 25% other gain1 and the regular tax rate that would apply is 39. 1040nr ez 6% 20% other gain1 and the regular tax rate that would apply is 25%, 28%, 33%, or 35% 15% other gain1 and the regular tax rate that would apply is 10% or 15% 0% 1 Other gain means any gain that is not collectibles gain, gain on qualified small business stock, or unrecaptured section 1250 gain. 1040nr ez     Collectibles gain or loss. 1040nr ez   This is gain or loss from the sale or trade of a work of art, rug, antique, metal (such as gold, silver, and platinum bullion), gem, stamp, coin, or alcoholic beverage held more than 1 year. 1040nr ez   Collectibles gain includes gain from sale of an interest in a partnership, S corporation, or trust due to unrealized appreciation of collectibles. 1040nr ez Gain on qualified small business stock. 1040nr ez    If you realized a gain from qualified small business stock that you held more than 5 years, you generally can exclude some or all of your gain under section 1202. 1040nr ez The eligible gain minus your section 1202 exclusion is a 28% rate gain. 1040nr ez See Gains on Qualified Small Business Stock in chapter 4 of Publication 550. 1040nr ez Unrecaptured section 1250 gain. 1040nr ez    Generally, this is any part of your capital gain from selling section 1250 property (real property) that is due to depreciation (but not more than your net section 1231 gain), reduced by any net loss in the 28% group. 1040nr ez Use the Unrecaptured Section 1250 Gain Worksheet in the Schedule D (Form 1040) instructions to figure your unrecaptured section 1250 gain. 1040nr ez For more information about section 1250 property and section 1231 gain, see chapter 3 of Publication 544. 1040nr ez Tax computation using maximum capital gain rates. 1040nr ez   Use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet (whichever applies) to figure your tax if you have qualified dividends or net capital gain. 1040nr ez You have net capital gain if Schedule D (Form 1040), lines 15 and 16, are both gains. 1040nr ez Schedule D Tax Worksheet. 1040nr ez   Use the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions to figure your tax if: You have to file Schedule D (Form 1040); and Schedule D (Form 1040), line 18 (28% rate gain) or line 19 (unrecaptured section 1250 gain), is more than zero. 1040nr ez Qualified Dividends and Capital Gain Tax Worksheet. 1040nr ez   If you do not have to use the Schedule D Tax Worksheet (as explained above) and any of the following apply, use the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040 or Form 1040A (whichever you file) to figure your tax. 1040nr ez You received qualified dividends. 1040nr ez (See Qualified Dividends in chapter 8. 1040nr ez ) You do not have to file Schedule D (Form 1040) and you received capital gain distributions. 1040nr ez (See Exceptions to filing Form 8949 and Schedule D (Form 1040) , earlier. 1040nr ez ) Schedule D (Form 1040), lines 15 and 16, are both more than zero. 1040nr ez Alternative minimum tax. 1040nr ez   These capital gain rates are also used in figuring alternative minimum tax. 1040nr ez Prev  Up  Next   Home   More Online Publications
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Understanding Your CP32 Notice

We sent you a replacement refund check.


What you need to do

  • If you have the expired check, please destroy it.

You may want to...

  • Call 1-800-TAX-FORM (1-800-829-3676) to order forms and publications.

Answers to Common Questions

When will I receive the replacement check?
You should receive the replacement check within 30 days.

What do I need to do to get my refund through direct deposit next year?
When filing your tax return, complete the requested banking information in the "Refund" section of your tax form if you want to direct deposit the entire amount into one account. If you want to deposit into more than one account, you must file Form 8888, Direct Deposit of Refund to More Than One Account, with your return.

Since my refund check was returned, can I request that you mail it to my work address instead?
Refund checks are mailed only to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed.

I filed jointly, but my spouse and I are now divorced. Where will you send the refund? Can you send us two checks?
A refund check is mailed to the address of record, which is the address provided on the tax return or the result of a permanent address change request submitted after the return is filed. We will send one refund check listing both you and your spouse's names. If you wish to have the refund split and issued in two checks, you must return the uncashed refund check and a copy of your divorce decree showing how the refund is to be allocated.


Tips for next year

To receive your refund more quickly, consider requesting your refund through direct deposit. You can even request that your refund be distributed to separate accounts, such as checking, savings, or retirement accounts. To request this, use Form 8888, Direct Deposit of Refund to More Than One Account.

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 03-Mar-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 1040nr Ez

1040nr ez Tax Changes for Individuals Table of Contents 2001 ChangesNew 5-Year Carryback Rule for Net Operating Losses (NOLs) Wash Sale Rules Do Not Apply to Section 1256 Contracts Other 2001 Changes 2002 ChangesDeduction for Educator Expenses Personal Credits Still Allowed Against Alternative Minimum Tax Later ChangeChild and Dependent Care Expenses 2001 Changes New 5-Year Carryback Rule for Net Operating Losses (NOLs) If you have an NOL from a tax year ending during 2001 or 2002, you must generally carry back the entire amount of the NOL to the 5 tax years before the NOL year (the carryback period). 1040nr ez However, you can still choose to use the previous carryback period. 1040nr ez You also can choose not to carry back an NOL and only carry it forward. 1040nr ez Individuals, estates, and trusts can file Form 1045, Application for Tentative Refund. 1040nr ez The instructions for this form will be revised to reflect the new law. 1040nr ez Wash Sale Rules Do Not Apply to Section 1256 Contracts The wash sale rules that generally apply to losses from the sale of stock or securities, do not apply to any loss arising from a section 1256 contract. 1040nr ez A section 1256 contract is any: Regulated futures contract, Foreign currency contract, Nonequity option, Dealer equity option, or Dealer securities futures contract. 1040nr ez Wash sales and section 1256 contracts are explained in detail in Publication 550, Investment Income and Expenses. 1040nr ez Other 2001 Changes Other changes are discussed in the following chapters. 1040nr ez Chapter 4 Car Expenses Chapter 5 Depreciation 2002 Changes Deduction for Educator Expenses If you are an eligible educator, you can deduct as an adjustment to income up to $250 in qualified expenses. 1040nr ez You can deduct these expenses even if you do not itemize deductions on Schedule A (Form 1040). 1040nr ez This adjustment to income is for expenses paid or incurred in tax years beginning during 2002 or 2003. 1040nr ez Previously, these expenses were deductible only as a miscellaneous itemized deduction subject to the 2% of adjusted gross income limit. 1040nr ez Eligible educator. 1040nr ez   You are an eligible educator if, for the tax year, you meet the following requirements. 1040nr ez You are a kindergarten through grade 12: Teacher, Instructor, Counselor, Principal, or Aide. 1040nr ez You work at least 900 hours during a school year in a school that provides elementary or secondary education, as determined under state law. 1040nr ez Qualified expenses. 1040nr ez   These are unreimbursed expenses you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. 1040nr ez For courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics. 1040nr ez   To be deductible as an adjustment to income, the qualified expenses must be more than the following amounts for the tax year. 1040nr ez The interest on qualified U. 1040nr ez S. 1040nr ez savings bonds that you excluded from income because you paid qualified higher education expenses, Any distribution from a qualified tuition program that you excluded from income, or Any tax-free withdrawals from your Coverdell education savings account. 1040nr ez Personal Credits Still Allowed Against Alternative Minimum Tax The provision that allowed certain nonrefundable personal credits to reduce both your regular tax and any alternative minimum tax (AMT) has been extended and will be in effect for 2002 and 2003. 1040nr ez This provision, as it applies to the AMT, was originally scheduled to expire after 2001. 1040nr ez Without the extension, these credits could not have been used to reduce any AMT in 2002 or 2003. 1040nr ez Later Change Child and Dependent Care Expenses For the purpose of figuring the child and dependent care credit, your spouse is treated as having at least a minimum amount of earned income for any month that he or she is a full-time student or not able to care for himself or herself. 1040nr ez Beginning in 2003, this amount is increased to $250 a month if there is one qualifying person and to $500 a month if there are two or more qualifying persons. 1040nr ez Before 2003, the amounts were $200 and $400. 1040nr ez The same rule applies for the exclusion of employer-provided dependent care benefits. 1040nr ez For more information about the credit and exclusion, see Publication 503, Child and Dependent Care Expenses. 1040nr ez Prev  Up  Next   Home   More Online Publications