Part V

Enhanced Deduction for Seniors

You may be able to claim the enhanced deduction for seniors. You can claim this deduction whether you claim the standard deduction or itemize deductions on Schedule A or Schedule A (Form 1040-NR).

Example. Your spouse was born on February 14, 1960, and died on February 13, 2025. Your spouse is considered age 65 at the time of death and would qualify for the enhanced deduction for seniors. However, if your spouse died on February 12, 2025, your spouse isn’t considered age 65 and wouldn’t qualify for the enhanced deduction for seniors. Maximum amount of deduction. The maximum amount of the enhanced deduction for seniors is $6,000 per person. If you are married filing jointly, and both you and your spouse were born before January 2, 1961, and you both have a valid SSN, the maximum amount of the enhanced deduction for seniors is $12,000. The $6,000 per person amount is reduced if your MAGI is more than the amount shown next for your filing status.

• ^{Married filing jointly—$150,000.}

• ^{Single, Head of household, or} Qualifying surviving spouse—$75,000.

Your MAGI is the amount on line 3 on Part I of Schedule 1-A. Valid SSN. You and/or your spouse must have a valid SSN to take this deduction. A valid SSN for purposes of the enhanced deduction for seniors is one that is valid for employment and that is issued by the SSA before the due date of your 2025 return (including extensions). For more information, see Valid SSN for No Tax on Tips, earlier.

! CAUTION

If you are married, you must file a joint return with your spouse to claim this deduction.

The special rules that apply to

! U.S. nationals; residents of CAUTION Canada, Mexico, and South

Korea; and residents of India who were students or business apprentices don't apply to the enhanced deduction for se- niors. See Pub. 519 for more informa- tion.

Fill out Schedule 1-A, Part V, only if:

• ^{You (and/or your spouse if filing a} joint return) were born before January 2,

• ^{You have a valid social security} number (SSN). If you are married filing jointly, the spouse who is claiming the enhanced deduction for seniors must have a valid SSN. Death of a taxpayer in 2025. If a taxpayer was born before January 2, 1961, but died in 2025 before reaching age 65, then the taxpayer doesn’t qualify for the enhanced deduction for seniors. A person is considered to reach age 65 on the day before the person’s 65th birthday.

Instructions for Schedule 2 Additional Taxes

If you completed more than one Schedule A (Form 8936), Part IV, and you need to report an amount from more than one Schedule A (Form 8936), Part IV, enter the total of those amounts on line 1c. Line 1d. Recapture of net EPE. Enter any amount of net elective payment election (EPE) recapture from Form 4255, line 2a, column (l). Line 1e. Excessive payments (EPs) on gross EPE from Form 4255. If you reported an amount on Form 4255, column (n)(1), on line 1a, 1c, 1d, and/or 2a, check the applicable box and enter the amount on line 1e. If you checked more than one box, enter the total amount on line 1e. Line 1f. 20% EP from Form 4255. If you reported an amount on Form 4255, column (n)(3), line 1a, 1c, 1d, and/or 2a, check the applicable box and enter the amount on line 1f. If you checked more than one box, enter the total on line 1f. Line 1y. Other additions to tax. Enter the following additions to tax.

1. Recapture of the alternative fuel vehicle refueling property credit (see Form 8911). Identify as “ARPCR.”

2. Any EPE related to the credit applied against tax from Form 8933 reported on Form 4255, line 2a, column (k). Identify as “EPE8933.”

3. Recapture of any non-EPE credit from Form 8933 reported on Form 4255, line 2a, column (j). Also, any section 6418(g)(3) amounts attributable to recapture from Form 8933 reported on Form 4255, line 2a, column (m)(3). Identify as “NEPE8933.”

4. Any amount that was reported on Form 4255, column (n)(2), line 1a, 1c, 1d, and/or 2a. Identify as “EPGEPE.”

5. Any section 6418(g)(2) excessive credit transfer amount reported on Form 4255, column (m)(1) and (m)(2). Identify as “6418(g)(2).”

111

General Instructions

Use Schedule 2 if you have additional taxes that can’t be entered directly on Form 1040, 1040-SR, or 1040-NR.

Include the amount on Schedule 2, line 3, in the total on Form 1040, 1040-SR, or 1040-NR, line 17.

Enter the amount on Schedule 2, line 21, on Form 1040 or 1040-SR, line 23; or 1040-NR, line 23b.

Specific Instructions

Lines 1a Through 1z

Additions to Tax

Line 1a. Excess advance premium tax credit repayment. The premium tax credit helps pay premiums for health insurance purchased from the Marketplace. Eligible individuals may have advance payments of the premium tax credit paid on their behalf directly to the insurance company. If you, your spouse with whom you are filing a joint return, or your dependent was enrolled in coverage purchased from the Marketplace and advance payments of the premium tax credit were made for the coverage, complete Form 8962 to reconcile (compare) the advance payments with your premium tax credit. You (or whoever enrolled you) should have received Form 1095-A from the Marketplace with information about your coverage and any advance credit payments. If the advance credit payments were more than the premium tax credit you can claim, the amount you must repay will be shown on Form 8962, line 29. Enter that amount, if any, on line 1a.

You may have to repay excess advance payments of the premium tax credit even if someone else enrolled you, your spouse, or your dependent in Marketplace coverage. In that case, another individual may have received the

Form 1095-A for the coverage. You may also have to repay excess advance payments of the premium tax credit if you enrolled an individual in coverage through the Marketplace, you don’t claim the individual as a dependent on your return, and no one else claims that individual as a dependent. For more information, see the Instructions for Form 8962. Line 1b. Repayment of new clean ve- hicle credit(s) from Schedule A (Form 8936), Part II. If you purchased a new clean vehicle from a registered dealer and reduced the amount you paid at the time of sale by transferring the credit to the dealer, you may have to repay the amount of the credit you transferred if you no longer qualify. If you completed Schedule A (Form 8936), Part II, and you:

• ^{Checked the “Yes” box on Part II,} line 8a or 8d; and

• ^{Checked the “Yes” box on Part I,} line 4a; then, enter the amount from Part I, line 4a, on Schedule 2, line 1b.

If you completed more than one Schedule A (Form 8936), Part II, and you need to report an amount from more than one Schedule A (Form 8936), Part II, enter the total of those amounts on line 1b. Line 1c. Repayment of previously owned clean vehicle credit(s) from Schedule A (Form 8936), Part IV. If you purchased a previously owned clean vehicle from a registered dealer and reduced the amount you paid at the time of sale by transferring the credit to the dealer, you may have to repay the amount of the credit you transferred if you no longer qualify. If you completed Schedule A (Form 8936), Part IV, and you:

• ^{Checked the “Yes” box on Part IV,} line 13a or 13c; and

• ^{Checked the “Yes” box on Part I,} line 4a; then, enter the amount from Part I, line 4a, on Schedule 2, line 1c.

For more information about

TIP elective pay and credit transfer-

ability, go to IRS.gov/Credits- Deductions/Elective-Pay-and- Transferability-Frequently-Asked- Questions-Transferability.

Line 2

Alternative Minimum Tax (AMT)

The AMT exemption amount is increased to $88,100 ($137,000 if married filing jointly or qualifying surviving spouse; $68,500 if married filing separately). The income levels at which the AMT exemption begins to phase out has increased to $626,350 ($1,252,700 if married filing jointly or qualifying surviving spouse).

See the Instructions for Form 6251 to see if you must file the form and then use Form 6251 to figure the amount, if any, of your AMT. Enter the amount from Form 6251, line 11, on line 2.

For help with the alternative minimum tax, go to IRS.gov/AMT .

Line 4

Self-employment Tax

On line 4, enter the amount of the tax due on net earning from self-employment from Schedule SE, line 12.

If you filed Form 4361, received IRS approval, and had no other income subject to self-employment tax, check box 1 on line 4.

If you filed Form 4029 and received IRS approval, check box 2 on line 4. See Pub. 517 for details.

If you are a U.S. citizen or resident alien living outside the United States and your self-employment income is exempt from self-employment tax, you should get a statement from the appropriate agency of the foreign country verifying that your self-employment income is subject to social security in that country. Attach a copy of the statement, check box 3, and enter “EAS” on the entry space next to box 3.

If you have income from a business (including farming) and the income is community income, but you aren’t the spouse who carried on the business and you had no other income subject to self-employment tax, check box 3 and

112

enter “ECI” on the entry space next to box 3.

If you received fees for services performed as a notary public and you had no other income subject to self-employment tax, check box 3 and enter “EN” on the entry space next to box 3. If you did have other earnings of $400 or more subject to self-employment tax, check box 3 and enter “EN” and the amount of your net profit as a notary public from Schedule C on the entry space next to box 3.

For more information, see the Instructions for Schedule SE.

Line 5

Unreported Social Security and Medicare Tax From Form 4137

Enter the total of any taxes from Form 4137. If you received tips of $20 or more in any month and you didn’t report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips.

Don’t include the value of any noncash tips, such as tickets or passes. You don’t pay social security and Medicare taxes or RRTA tax on these noncash tips.

To figure the social security and Medicare tax, use Form 4137. If you owe RRTA tax, contact your employer. Your employer will figure and collect the RRTA tax.

You may be charged a penalty

! equal to 50% of the social se- CAUTION curity and Medicare or RRTA

tax due on tips you received but didn’t report to your employer.

Line 6

Uncollected Social Security and Medicare Tax From Form 8919

Enter the total of any taxes from Form 8919. If you are an employee who received wages from an employer who didn’t withhold social security and Medicare tax from your wages, use Form 8919 to figure your share of the unreported tax. Include on line 6 the amount from line 13 of Form 8919. Include the

amount from line 6 of Form 8919 on Form 1040 or 1040-SR, line 1g.

Line 8

Additional Tax on IRAs, Other Qualified Retirement Plans, etc.

If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329. Also see Form 5329 and its instructions for definitions of the terms used here.

1. You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution wasn’t rolled over.

2. Excess contributions were made to your IRA, Coverdell education savings account (ESA), Archer MSA, health savings account (HSA), or ABLE account.

3. You received a taxable distribution from a Coverdell ESA, qualified tuition program, or ABLE account.

4. You didn’t take the minimum required distribution from your IRA or other qualified retirement plan by April 1 of the year following the year you reached age 73.

Exception. If only item (1) applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R, you don’t have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (0.10) and enter the result on line 8. The taxable amount of the distribution is the part of the distribution you reported on Form 1040, 1040-SR, or 1040-NR, line 4b or 5b, or on Form 4972. Also check the box on line 8 to indicate that you don’t have to file Form 5329. But you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception, such as the exceptions for qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions, or a qualified reservist distribution.

Line 16

Recapture of Low-Income Housing Credit

Enter the amount from Form 8611, line 14.

Lines 17a Through 17z

Other Additional Taxes

Line 17a. Recapture of the following credits.

1. Amounts from Form 4255, column (j), lines 1b, 1j, 1l, and 1m. Identify as “3468.”

2. Non-EPE recapture applied against tax from Form 3468, Part IV, reported on Form 4255, line 1d, column (j). Identify as “NEPE3468.”

3. New markets credit (see Form 8874). Identify as “NMCR.”

4. Credit for employer-provided childcare facilities (see Form 8882). Identify as “ECCFR.”

5. Any section 6418(g)(3) amounts attributable to recapture from Form 4255, column (m)(3). Identify as “6418(g)(3).”

Line 17b. If you sold your home in 2025 and it was financed (in whole or in part) from the proceeds of any tax-exempt qualified mortgage bond or you claimed the mortgage interest credit, you may owe a recapture tax on the mortgage subsidy. See Form 8828.

Line 17c. Enter any additional tax on health savings account (HSA) distributions you received from Form 8889, line 17b. See Form 8889, Part II. Line 17d. Enter any additional tax for failure to remain an eligible individual during the testing period from Form 8889, line 21. See Form 8889, Part III.

Line 17e. Enter any additional tax on Archer MSA distributions from Form 8853, line 9b. See Form 8853. Line 17f. Enter any additional tax on Medicare Advantage MSA distributions from Form 8853, line 13b. See Form 8853. Line 17g. Enter any additional tax on recapture of a charitable contribution deduction relating to a fractional interest in

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Line 9

Household Employment Taxes

Enter the household employment taxes you owe for having a household employee. If any of the following apply, see Schedule H and its instructions to find out if you owe these taxes.

1. You paid any one household employee (defined below) cash wages of $2,800 or more in 2025. Cash wages include wages paid by check, money order, etc. But don’t count amounts paid to an employee who was under age 18 at any time in 2025 and was a student.

2. You withheld federal income tax during 2025 at the request of any household employee.

3. You paid total cash wages of $1,000 or more in any calendar quarter of 2024 or 2025 to household employees.

Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, housekeepers, yard workers, and similar domestic workers.

Line 10

Reserved for Future Use

Line 10 has been reserved for future use.

Line 11

Additional Medicare Tax

See Form 8959 and its instructions if the total of your 2025 wages and any self-employment income was more than:

• ^{$125,000 if married filing sepa-} rately;

• ^{$250,000 if married filing jointly;} or

• ^{$200,000 if single, head of house-} hold, or qualifying surviving spouse. Also see Form 8959 if you had railroad retirement (RRTA) compensation that was more than the amount just listed that applies to you.

If you are married filing jointly and either you or your spouse had wages or RRTA compensation of more than $200,000, your employer may have withheld Additional Medicare Tax even

if you don’t owe the tax. In that case, you may be able to get a refund of the tax withheld. See the Instructions for Form 8959 to find out how to report the withheld tax on Form 8959.

Line 12

Net Investment Income Tax

See Form 8960 and its instructions if the amount on Form 1040, 1040-SR, or 1040-NR, line 11b, is more than:

• ^{$125,000 if married filing sepa-} rately,

• ^{$250,000 if married filing jointly} or qualifying surviving spouse, or

• ^{$200,000 if single or head of} household. If you file Form 2555, see Form 8960 and its instructions if the amount on Form 1040, 1040-SR, or 1040-NR, line 11b, is more than:

• ^{$0 if married filing separately,}

• ^{$120,000 if married filing jointly} or qualifying surviving spouse, or

• ^{$70,000 if single or head of house-} hold.

Line 13

Uncollected social security and Medi- care or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with codes A and B or M and N.

Line 14

Interest on Tax Due on Installment Income From the Sale of Certain Residential Lots and Timeshares

Enter interest on tax due on installment income from the sale of certain residential lots and timeshares under section 453(l)(3).

Line 15

Interest on the Deferred Tax on Gain From Certain Installment Sales With a Sales Price Over $150,000

Enter interest on the deferred tax on gain from certain installment sales with a sales price over $150,000 under section 453A(c).

tangible personal property. See Pub. 526 for more information. Line 17h. Enter any additional tax on income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A. This income should be shown in box 12 of Form W-2 with code Z, or in box 15 of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B) (ii). See section 409A(a)(1)(B) for details. Line 17i. Enter any additional tax on compensation you received from a nonqualified deferred compensation plan described in section 457A if the compensation would have been includible in your income in an earlier year except that the amount wasn’t determinable until 2025. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 457A(c)(2). See section 457A for details. Line 17j. Enter any section 72(m)(5) excess benefits tax. See Pub. 560 for more information.

Line 17k. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in box 12 of Form W-2 with code K. If you received a Form 1099-NEC, the tax is 20% of the EPP shown in box 3. Enter this amount on line 17k.

Line 17l. Enter any tax on accumulation distribution of trusts. See Form 4970 for more information. Line 17m. Enter any excise tax on insider stock compensation from an expatriated corporation. See section 4985. Line 17n. Enter any look-back interest under section 167(g) or 460(b). See Form 8697 or 8866 for more information. Line 17o. Enter any tax on non-effectively connected income for any part of the year you were a nonresident alien. See the Instructions for Form 1040-NR for more information. Line 17p. Enter any interest amount from Form 8621, line 16f, relating to distributions from, and dispositions of, stock of a section 1291 fund. Line 17q. Enter any interest amount from Form 8621, line 24. Line 17z. Use line 17z to report any taxes not reported elsewhere on your return or other schedules. List the type and amount of tax.

Other taxes to be listed include the following.

• ^{The prevailing wage and appren-} ticeship penalties (PWA) from Form 4255 for the following:

1. Form 7210/Form 4255, line 1c, columns (o)(1), (o)(2), (p)(1), and/or (p) (2). If you entered an amount in more than one column, enter the total on line 17z. Identify as “PWA7210.”

2. Form 8933/Form 4255, line 2a, columns (o)(1), (o)(2), (p)(1), and/or (p) (2). If you entered an amount in more than one column, enter the total on line 17z. Identify as “PWA8933.”

3. Any amount from Form 4255, columns (o)(1), (o)(2), (p)(1), and/or (p) (2) not reported elsewhere. If you entered an amount in more than one column, enter the total on line 17z. Identify as “NPWA.”

• ^{Form 8978 adjustment. Complete} the Negative Form 8978 Adjustment Worksheet—Schedule 2 (Line 17z) if you are filing Form 8978 and completed the worksheet in the Schedule 3, line 6l, instructions and the amount on line 3 of that worksheet is negative.

If you file Form 8621, don’t en-

! ter the amount from line 9c on CAUTION line 17z. Instead, see the In-

structions for Form 8621 for how to re- port this amount.

Line 19

Recapture of Net EPE From Form 4255

Enter the recapture amount of the net EPE claimed on Form 4255, line 1d, column (l), related to the credit from Form 3468, Part IV.

114

Instructions for Schedule 3 Additional Credits and Payments

attend an eligible educational institution, you may be able to take an education credit. See Form 8863 for details. However, you can’t take an education credit if any of the following applies.

• ^{You, or your spouse if filing joint-} ly, are claimed as a dependent on someone else’s (such as your parent’s) 2025 tax return.

• ^{Your filing status is married filing} separately.

• ^{The amount on Form 1040 or} 1040-SR, line 11b, is $90,000 or more ($180,000 or more if married filing jointly).

• ^{You, or your spouse, were a non-} resident alien for any part of 2025 unless your filing status is married filing jointly. See Nonresident aliens and dual-sta- tus aliens, earlier.

You may be able to increase an education credit if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income.

For more information, see Pub. 970; the instructions for Form 1040 or 1040-SR, line 29; and IRS.gov/EdCredit .

Line 4

Retirement Savings Contributions Credit (Saver’s Credit)

You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions, other than rollover contributions, to a traditional or Roth IRA; (b) elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental section 457(b) plan, SIMPLE IRA, or a SEP; (c) voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan); (d) contributions to a 501(c) (18)(D) plan; or (e) contributions to an ABLE account by the designated beneficiary, as defined in section 529A.

However, you can’t take the credit if either of the following applies.

115

General Instructions

Use Schedule 3 if you have nonrefundable credits, other than the child tax credit or the credit for other dependents, or other payments and refundable credits.

Include the amount on Schedule 3, line 8, in the amount entered on Form 1040, 1040-SR, or 1040-NR, line 20.

Enter the amount on Schedule 3, line 15, on Form 1040, 1040-SR, or 1040-NR, line 31.

Specific Instructions

Line 1

Foreign Tax Credit

If you are a shareholder in a

TIP controlled foreign corporation

and made a section 962 elec- tion, see the instructions for Forms 1040 and 1040-SR, line 16, for the foreign tax credit you figured on Form 1118.

If you paid income tax to a foreign country or U.S. territory, you may be able to take this credit. Generally, you must complete and attach Form 1116 to do so. Exception. You don’t have to complete Form 1116 to take this credit if all of the following apply.

1. All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-3 (or substitute statement).

2. The total of your foreign taxes wasn't more than $300 (not more than $600 if married filing jointly).

3. You held the stock or bonds on which the dividends or interest were paid for at least 16 days and weren’t obligated to pay these amounts to someone else.

4. You aren’t filing Form 4563 or excluding income from sources within Puerto Rico.

5. All of your foreign taxes were: a. Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and

b. Paid to countries that are recognized by the United States and don’t support terrorism.

For more details on these requirements, see the Instructions for Form 1116. Do you meet all five requirements just listed?

Yes. Enter on line 1 the smaller of (a) your total foreign taxes, or (b) the total of the amounts on Form 1040 or 1040-SR, line 16, and Schedule 2, line 1a.

No. See Form 1116 to find out if you can take the credit and, if you can, if you have to file Form 1116.

Line 2

Credit for Child and Dependent Care Expenses

You may be able to take this credit if, in order to work or look for work, you paid someone to care for:

• ^{Your qualifying child under age 13} whom you claim as your dependent,

• ^{Your disabled spouse or any other} disabled person who couldn’t care for themselves, or

• ^{Your child whom you couldn't} claim as a dependent because of the rules for Children of divorced or separa- ted parents under Who Qualifies as Your Dependent, earlier.

For details, use Tax Topic 602 or see Form 2441.

Line 3

Education Credits

If you (or your dependent) paid qualified expenses in 2025 for yourself, your spouse, or your dependent to enroll in or

1. The amount on Form 1040, 1040-SR, or 1040-NR, line 11b, is more than $39,500 ($59,250 if head of household; $79,000 if married filing jointly).

2. The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2008, (b) is claimed as a dependent on someone else’s 2025 tax return, or (c) was a student (defined next).

You were a student if during any part of 5 calendar months of 2025, you:

• ^{Were enrolled as a full-time stu-} dent at a school; or

• ^{Took a full-time, on-farm training} course given by a school or a state, county, or local government agency.

A school includes a technical, trade, or mechanical school. It doesn’t include an on-the-job training course, correspondence school, or school offering courses only through the Internet.

For more details, use Tax Topic 610 or see Form 8880.

Line 5

Residential Energy Credits

Line 5a—residential clean energy credit. If you made energy saving improvements to one or more homes that you used as a residence during 2025, you may be able to take the residential clean energy credit. For more information, see Form 5695 and its instructions. Line 5b—energy efficient home im- provement credit. If you made qualified energy efficiency improvements to your main home located in the United States in 2025, you may be able to take the energy efficient home improvement credit. For more information, see Form 5695 and its instructions.

Condos and co-ops. If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of these credits. More details. For details, see Form 5695.

Lines 6a Through 6z

Other Nonrefundable Credits

Line 6a. The general business credit consists of a number of credits that usually apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See Form 3800 or Pub. 334.

The net elective payment elec-

! tion amount from Form 3800, CAUTION Part III, line 6, column (j), is

reported on Schedule 3, line 13c.

Line 6b. Enter any credit for prior-year minimum tax. See Form 8801.

Line 6c. You may be able to take the adoption credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2025. See the Instructions for Form 8839.

Line 6d. Enter any credit for the elderly or the disabled. See Schedule R. Line 6e. Line 6e has been reserved for future use.

Line 6f. Enter the personal use part of any credit for new clean vehicles. See Form 8936, Part III.

Line 6g. Enter any mortgage interest credit if a state or local government gave you a mortgage credit certificate. See Form 8396. Line 6h. You can’t claim the District of Columbia first-time homebuyer credit for a home you bought after 2011. You can claim it only if you have a credit carryforward from 2024. See Form 8859. Line 6i. Enter any qualified electric vehicle credit. You can’t claim this credit for a vehicle placed in service after 2006. You can claim this credit only if you have an electric vehicle passive activity credit carried forward from a prior year. See Form 8834. Line 6j. Enter any alternative fuel vehicle refueling property credit. See Form 8911. Line 6k. Enter any credit to holders of tax credit bonds. See Form 8912. Line 6l. Enter the amount from Form 8978, line 14 (relating to partner’s audit liability under section 6226). If the amount on Form 8978, line 14, is negative, complete the following worksheet to figure the amount to enter on line 6l. If the amount on Form 8978, line 14, is positive, see the instructions for Form 1040 or 1040-SR, line 16. Line 6m. Enter any credit for previously owned clean vehicles. See Form 8936, Part IV. Line 6z. Leave line 6z blank.

Line 9

Net Premium Tax Credit

The premium tax credit helps pay for health insurance purchased through the Marketplace. You may be eligible to claim the premium tax credit if you,

Negative Form 8978 Adjustment Worksheet—Schedule 3 (Line 6l)

Note. Complete this worksheet if Form 8978, line 14, is negative.

116

your spouse, or a dependent enrolled in health insurance through the Marketplace. Eligible individuals may have advance payments of the premium tax credit made on their behalf directly to the insurance company. You (or whoever enrolled you) should have received Form 1095-A from the Marketplace with information about your coverage and any advance credit payments. Complete Form 8962 to determine the amount of your premium tax credit, if any. If the premium tax credit you can claim exceeds your advance credit payments, your net premium tax credit will be shown on Form 8962, line 26. Enter that amount, if any, on line 9. For more information, see the Instructions for Form 8962.

Line 10

Amount Paid With Request for Extension To File

If you got an automatic extension of time to file Form 1040, 1040-SR, or 1040-NR by filing Form 4868 or by making a payment, enter the amount of the payment or any amount you paid with Form 4868. If you paid a fee when making your payment, don’t include on line 10 the fee you were charged. Also, include any amounts paid with Form 2350.

Line 11

Excess Social Security and Tier 1 RRTA Tax Withheld

If you, or your spouse if filing a joint return, had more than one employer for 2025 and total wages of more than $176,100, too much social security or

tier 1 railroad retirement (RRTA) tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $10,918.20. But if any one employer withheld more than $10,918.20, you can’t claim the excess on your return. The employer should adjust the tax for you. If the employer doesn’t adjust the overcollection, you can file a claim for refund using Form 843. Figure this amount separately for you and your spouse.

You can’t claim a refund for excess tier 2 RRTA tax on Form 1040, 1040-SR, or 1040-NR. Instead, use Form 843.

Line 12

Credit for Federal Tax on Fuels

Enter any credit for federal excise taxes paid on fuels that are ultimately used for a nontaxable purpose (for example, an off-highway business use). Attach Form 4136.

Lines 13a Through 13z Other Payments or Refundable Credits

Line 13b

If you are claiming a credit for repayment of amounts you included in your income in an earlier year because it appeared you had a right to the income, enter the amount on line 13b. See Pub. 525 for details about this credit.

Line 13c

Enter any net elective payment election amount from Form 3800, Part III, line 6, column (j).

Line 13d

If you elected to pay your net 965 tax liability in installments, report the deferred amount on line 13d. Enter the amount of net 965 tax liability remaining to be paid in future years.

Line 13z

Other refundable credits. Use line 13z to report the credit under section 960(c) with respect to an excess limitation account. If an increase in the limitation under section 960(c) is more than your U.S. income tax reported on Form 1116, Part III, line 20, the amount of the excess is deemed an overpayment of tax and can be claimed on line 13z as a refundable credit. See section 960(c)(5). Enter “960(c)” and the amount of the credit. See section 960(c) for more information about the circumstances under which an excess in limitation arises. Also, see the instructions for Form 1116, Part III, line 22, for your increase in limitation.

Also use line 13z to report the amount of U.S. tax allocable to the U.S. Virgin Islands. Enter “Form 8689” and the amount paid.

If you made the election to defer net income tax attributable to the gain on the sale or exchange of qualified farmland property, use Form 1062 to figure the amount of your applicable net tax liability. On line 13z, enter 75% of your applicable net tax liability from Form 1062, line 14. Identify as “1062NL.”

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Tax Topics

You can read these Tax Topics at IRS.gov/TaxTopics .

List of Tax Topics All topics are also available in Spanish (and most topics are available in Chinese, Korean, Vietnamese, and Russian).

Topic No. Subject IRS help available 101 IRS services—Volunteer tax assistance, outreach programs, and identity theft 102 Tax assistance for individuals with disabilities 103 Tax help for small businesses and the self-employed 104 Taxpayer Advocate Service—Your voice at the IRS 105 Armed Forces tax information 107 Tax relief in disaster situations IRS procedures 151 Your appeal rights 154 Form W-2 and Form 1099-R (What to do if incorrect or not received) 155 Obtaining forms and publications 156 How to get a transcript or copy of your tax return 157 Change your address—How to notify the IRS 158 Paying your taxes and ensuring proper credit of payments 159 How to get a wage and income transcript or copy of Form W-2 161 Returning an erroneous refund—Paper check or direct deposit Collection 201 The collection process 202 Tax payment options 203 Reduced refund 204 Offers in compromise 206 Dishonored payments Alternative filing methods 253 Substitute tax forms 254 How to choose a tax return preparer 255 Signing your return electronically General information 301 When, how, and where to file 303 Checklist of common errors when preparing your tax return 304 Extensions of time to file your tax return 305 Recordkeeping 306 Penalty for underpayment of estimated tax 307 Backup withholding 308 Amended returns

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Topic No. Subject 309 Roth IRA contributions 310 Coverdell education savings accounts 311 Power of attorney information 312 Disclosure authorizations 313 Qualified tuition programs (QTPs) Which forms to file 356 Decedents Types of income 401 Wages and salaries 403 Interest received 404 Dividends and other corporate distributions 407 Business income 409 Capital gains and losses 410 Pensions and annuities 411 Pensions—The general rule and the simplified method 412 Lump-sum distributions 413 Rollovers from retirement plans 414 Rental income and expenses 415 Renting residential and vacation property 416 Farming and fishing income 417 Earnings for clergy 418 Unemployment compensation 419 Gambling income and losses 420 Bartering income 421 Scholarships, fellowship grants, and other grants 423 Social Security and equivalent railroad retirement benefits 424 401(k) plans 425 Passive activities—Losses and credits 427 Stock options 429 Traders in securities (Information for Form 1040 or 1040-SR filers) 430 Receipt of stock in a demutualization 431 Canceled debt—Is it taxable or not? 432 Form 1099-A (Acquisition or Abandonment of Secured Property) and Form 1099-C (Cancellation of Debt) Adjustments to income 451 Individual retirement arrangements (IRAs) 452 Alimony and separate maintenance 453 Bad debt deduction 455 Moving expenses for members of the Armed Forces 456 Student loan interest deduction 458 Educator expense deduction

Topic No. Subject Itemized deductions 501 Should I itemize? 502 Medical and dental expenses 503 Deductible taxes 504 Home mortgage points 505 Interest expense 506 Charitable contributions 509 Business use of home 510 Business use of car 511 Business travel expenses 513 Work-related education expenses 515 Casualty, disaster, and theft losses Tax computation 551 Standard deduction 552 Tax and credits figured by the IRS 553 Tax on a child's investment and other unearned income (Kiddie tax) 554 Self-employment tax 556 Alternative minimum tax 557 Additional tax on early distributions from traditional and Roth IRAs 558 Additional tax on early distributions from retirement plans other than IRAs 559 Net investment income tax 560 Additional Medicare Tax Tax credits 601 Earned Income Credit 602 Child and Dependent Care Credit 608 Excess Social Security and RRTA tax withheld 610 Retirement Savings Contributions Credit 612 The Premium Tax Credit IRS notices 651 Notices—What to do 652 Notice of underreported income—CP2000 653 IRS notices and bills, penalties, and interest charges 654 Understanding your CP75 or CP75A notice, Request for Supporting Documentation Basis of assets, depreciation, and sale of assets 701 Sale of your home 703 Basis of assets 704 Depreciation 705 Installment sales Employer tax information 751 Social Security and Medicare withholding rates 752 Filing Forms W-2 and W-3

List of Tax Topics

(Continued)

Topic No. Subject 753 Form W-4—Employee's Withholding Certificate 756 Employment taxes for household employees 757 Forms 941 and 944—Deposit requirements 758 Form 941—Employer's Quarterly Federal Tax Return and Form 944—Employer's Annual Federal Tax Return 759 Form 940—Employer's Annual Federal Unemployment (FUTA) Tax Return—Filing and deposit requirements 760 Form 943—Reporting and deposit requirements for agricultural employers 761 Tips—Withholding and reporting 762 Independent contractor vs. employee 763 The Affordable Care Act

Topic No. Subject Electronic media filers—1099 series and related information returns 801 Who must file information returns electronically 802 Applying to file information returns electronically 803 Electronic filing waivers or exemptions and filing extensions 804 FIRE system test files and combined Federal/State Filing (CF/SF) program Tax information for U.S. resident aliens and citizens living abroad 851 Resident and nonresident aliens 856 Foreign tax credit 857 Individual taxpayer identification number (ITIN) 858 Alien tax clearance Tax information for residents of Puerto Rico 901 Is a person with income from sources within Puerto Rico required

Topic No. Subject to file a U.S. federal income tax return? 902 Credits and deductions for taxpayers with Puerto Rican source income exempt from U.S. tax 903 U.S. employment tax in Puerto Rico

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Disclosure, Privacy Act, and Paperwork Reduction Act Notice

The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it and whether your response is voluntary, required to obtain a benefit, or mandatory under the law.

This notice applies to all records and other material (in paper or electronic format) you file with us, including this tax return. It also applies to any questions we need to ask you so we can complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties.

Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections. Code section 6109 requires you to provide your identifying number on the return. This is so we know who you are, and can process your return and other papers. You must fill in all parts of the tax form that apply to you. But you do not have to check the boxes for the Presidential Election Campaign Fund or for the third-party designee. You also do not have to provide your daytime phone number or email address.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

We ask for tax return information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax.

If you do not file a return, do not provide the information we ask for, or provide fraudulent information, you may be charged penalties and be subject to criminal prosecution. We may also have to disallow the exemptions, exclusions, credits, deductions, or adjustments shown on the

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tax return. This could make the tax higher or delay any refund. Interest may also be charged.

Generally, tax returns and return information are confidential, as stated in Code section 6103. However, Code section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or territories to carry out their tax laws. We may disclose your tax information to the Department of Treasury and contractors for tax administration purposes; and to other persons as necessary to obtain information needed to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller General of the United States to permit the Comptroller General to review the Internal Revenue Service. We may disclose your tax information to committees of Congress; federal, state, and local child support agencies; and to other federal agencies for the purposes of determining entitlement for benefits or the eligibility for and the repayment of loans. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

Please keep this notice with your records. It may help you if we ask you for other information. If you have questions about the rules for filing and giving information, please call or visit any Internal Revenue Service office.

We Welcome Comments on Forms

We try to create forms and instructions that can be easily understood. Often this is difficult to do because our tax laws are very complex. For some people with income mostly from wages, filling in the forms is easy. For others who have businesses, pensions, stocks, rental income, or other investments, it is more difficult.

If you have suggestions for making these forms simpler, we would be happy

to hear from you. You can send us comments through IRS.gov/FormsComments . Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don’t send your return to this address. Instead, see the addresses at the end of these instructions.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms and instructions.

Estimates of Taxpayer Burden

The following table shows burden estimates based on current statutory requirements as of October 1, 2025, for taxpayers filing a 2025 Form 1040 or 1040-SR tax return. Time spent and out-of-pocket costs are presented separately. Time burden is broken out by taxpayer activity, with recordkeeping representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax return preparation software costs. While these estimates don’t include burden associated with post-filing activities, IRS operational data indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower post-filing burden.

Reported time and cost burdens are national averages and don’t necessarily reflect a “typical” case. Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type. For instance, the estimated average time burden for all taxpayers filing a Form 1040 or 1040-SR is 12 hours, with an average cost of $290 per return. This average includes all associated forms and schedules, across all tax return preparation methods and taxpayer activities.

Within this estimate, there is significant variation in taxpayer activity. For example, nonbusiness taxpayers are expected to have an average burden of about 8 hours and $160, while business taxpayers are expected to have an average burden of

about 21 hours and $610. Similarly, tax return preparation fees and other out-of-pocket costs vary extensively depending on the tax situation of the taxpayer, the type of software or professional

preparer used, and the geographic location.

For more information on taxpayer burden, see Pub. 5743. If you have com

ments concerning the time and cost estimates below, you can contact us at either one of the addresses shown under We Welcome Comments on Forms .

Estimated Average Taxpayer Burden for Individuals by Activity

*Detail may not add to total time due to rounding. **Dollars rounded to the nearest $10. ***You are considered a “business” filer if you file one or more of the following with Form 1040 or 1040-SR: Schedule C, E, or F or Form 2106. You are considered a “nonbusiness” filer if you don’t file any of those schedules or forms with Form 1040 or 1040-SR.

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Major Categories of Federal Income and Outlays for Fiscal Year 2024

Income and Outlays. These pie charts show the relative sizes of the major categories of federal income and outlays for fiscal year 2024.

Income Outlays

Physical, human, and

Social programs ⁴

20%

Net interest

on the

Social security, Medicare, and unemployment and other

Law enforcement

National defense, veterans, and foreign

affairs ²

18%

Social security, Medicare, and other

Personal income

taxes

miscellaneous taxes

4%

Borrowing to

cover deficit

27%

8%

On or before the first Monday in February of each year, the President is required by law to submit to the Congress a budget proposal for the fiscal year that begins the following October. The budget plan sets forth the President’s proposed receipts, spending, and the surplus or deficit for the federal government. The plan includes recommendations for new legislation as well as recommendations to change, eliminate, and add programs. After receipt of the President’s proposal, the Congress reviews the proposal and makes changes. It first passes a budget resolution setting its own targets for receipts, outlays, and surplus or deficit. Next, individual spending and revenue bills that are consistent with the goals of the budget resolution are enacted.

In fiscal year 2024 (which began on October 1, 2023, and ended on September

30, 2024, federal income was $4.920 trillion and outlays were $6.751 trillion, leaving a deficit of $1.831 trillion.

Footnotes for Certain Federal Outlays

1. Social security, Medicare, and other retirement: These programs provide income support for the retired and disabled and medical care for the elderly.

2. National defense, veterans, and foreign affairs: About 13% of outlays were to equip, modernize, and pay our armed forces and to fund national defense activities; about 5% were for veterans benefits and services; and about 1% were for international activities, including military and economic assistance to foreign

countries and the maintenance of U.S. embassies abroad.

3. Physical, human, and communi- ty development: These outlays were for agriculture; natural resources; environment; transportation; aid for elementary and secondary education and direct assistance to college students; job training; deposit insurance, commerce and housing credit, and community development; and space, energy, and general science programs.

4. Social programs: About 14% of total outlays were for Medicaid, Supplemental Nutrition Assistance Program (formerly food stamps), temporary assistance for needy families, supplemental security income, and related programs; and 6% for health research and public health programs, unemployment compensation, assisted housing, and social services.

Note. The percentages shown here exclude undistributed offsetting receipts, which were $147 billion in fiscal year 2024. In the budget, these receipts are offset against spending in figuring the outlay totals shown above. These receipts are for the U.S. Government's share of its employee retirement programs, rents and royalties on the Outer Continental Shelf, and proceeds from the sale of assets.

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Index to Instructions

A

ABLE account 92, 112 Additional deductions 34 Additional Medicare Tax 113 Additions to tax 111 Address change 12 Adjusted gross income 33 Adoption 61 Adoption credit 116 Adoption taxpayer identification number 20 Aliens 8 Alimony paid 95 Alimony received 89 Alternative minimum tax 112 Amended return 83 Amount you owe 63-65 Annuities 28-30 Applicable passenger vehicle 109 Archer MSAs 91, 112, 113 Artists 93 Assistance ( See Tax help) Attachments to the return 67 Awards 91

B

Bankruptcy cases, chapter 11 23 Bequests 93 Blindness 33, 35 Business income or loss 89

C

Combat pay, nontaxable 43 Education :

Credits 61, 115 Expenses 61, 115 Recapture of education credits 34 Savings accounts 93, 112 Educator expenses 93 Elderly persons :

Credit for 116 Standard deduction 35 Electric vehicles 116 Electronic filing (e-file) 62, 63, 66, 67 Enhanced deduction for seniors 110 Estimated tax 39, 65, 82 Excess deferrals 24 Excess social security and tier 1 RRTA tax

withheld 117 Extension of time to file 8, 117

F

Filing requirements 11 Filing status, which box to check 13-15 Foreign accounts and trusts 23 Foreign tax credit 115 Foreign-source income 23 Form W-2 25

G

Gambling 91 General business credit 116 Gifts 93 Golden parachute payments 114

H

Head of household 14 Health insurance deduction, self-employed 94 Health insurance premiums, credit for 116 Health savings accounts 91, 93, 112, 113 Household employment taxes 113 How to comment on forms 120

I

Identity Protection PIN 66 Identity theft 82 Income 23-89 Income tax withholding (federal) 39, 82 Individual retirement arrangements (IRAs)

Contributions to 95, 97 Credit for contributions to 115 Distributions from 26 Nondeductible contributions to 26, 95-97 Individual taxpayer identification numbers 13 Injured spouse 62 Innocent spouse relief 81 Installment payments 64 Interest income

Tax-exempt 25 Taxable 25 Interest on taxes 86 Investment income, tax on 113 Itemized deductions or standard deduction 35 ITINs for aliens 13

J

Jury duty pay 91

M

Market discount on bonds 25 Married persons :

Filing joint returns 13 Filing separate returns 14 Living apart 15 Medical insurance premiums, credit for 116 Medicare tax, additional 113 Mortgage interest credit 116 Moving expenses 93 Multiple support agreement 21

N

Name change 12 Net Investment Income Tax 113 Net operating loss 91 No tax on :

Car loan interest 109 Overtime 106 Tips 101 No tax on car loan interest 109 No tax on overtime No tax on tips 101

( See also Qualified tips) Nonresident aliens 8, 13 Not qualified tips 102

O

Offsets 61 Other gains or losses 89 Other income 89, 91 Other taxes 113 Overtime :

Not qualified 106 Qualified 106

P

Parents, divorced or separated 20 Pay taxes electronically 63 Payments 39-117 Penalty

Early withdrawal of savings 95 Estimated tax 65 Others (including late filing and late

payment) 86 Penalty on early withdrawal of savings 95 Pensions and annuities 28-30 Premium tax credit 116 Presidential election $3 check-off 13 Private delivery services 9 Prizes 91 Public debt, gift to reduce the 82 Publications ( See Tax help)

Q

Qualified business income deduction 34

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L

Life insurance 93 Line instructions for Forms 1040 and

1040-SR 67 Living abroad, U.S. citizens and resident

aliens 8, 23 Long-term care insurance 94 Lump-sum distributions 30

Canceled debt 91 Capital gain distributions 31 Capital gain or loss 31 Child and dependent care expenses, credit

for 115 Child custody 20 Child support 93 Child tax credits 17, 61 Child’s requirement to file 9, 10 Community property states 23 Contributions to reduce debt held by the

public 82 Corrective distributions 25 Credits 61

D

Daycare center expenses 115 Death of a taxpayer 12 Death of spouse 12 Dependent care benefits 24 Dependents 16, 17

Standard deduction 35 Direct deposit of refund 62, 63 Disability expenses 92 Disclosure, Privacy Act, and Paperwork

Reduction Act Notice 120 Dividends :

Nondividend distributions 26 Ordinary dividends 26 Qualified dividends 25, 38 Divorced parents 20 Dual-status aliens 8, 13

E

Earned income credit (EIC) 40

Qualified dividends 25, 38 Qualified dividends and capital gain tax

worksheet 38 Qualified overtime 106

Determine amount 106 Qualified passenger vehicle loan interest

T

Tax and credits 33-113

Figured by the IRS 36, 43 Other taxes:

Alternative minimum tax 112 IRAs and other tax-favored accounts 112 Lump-sum distributions 30 Recapture 113 Tax computation worksheet 80 Tax help 83 Tax table 68-79 Tax Topics 118 Taxpayer Advocate Service (TAS) 4 Third party designee 65 Tip income 112 Tuition program earnings 93, 112

U

Unemployment compensation 89

W

Wages 23 What if you can’t pay? 64 What’s new 6 When and where should you file? 8 Who must file 9, 10 Who should file 8 Winnings, prizes, gambling, and lotteries (other

income) 91 Withholding, federal income tax 39, 82

deduction 109 Applicable passenger vehicle 109 Final assembly 109 Qualified passenger vehicle loan interest 109 Qualified retirement plans, deduction for 93 Qualified tips 101, 102

Refunds, credits, or offsets of state and local

taxes 88 Reservists, expenses of 93 Residency 13 Resident aliens 8 Residential energy efficient property credit 116 Retirement plan deduction, self-employed 93 Retirement savings contributions credit 115 Rollovers 26, 30 Roth IRAs 26, 95 Rounding off to whole dollars 23

S

Saver’s credit 115 Self-employment tax :

Deduction for part of 93 Seniors :

( See also Not qualified tips)

Cash tips 102 Determine amount for:

Employee 103 Non-employee 103 GITCA 102 Tips paid voluntarily 102 TRDA 102 Treasury Tipped Occupation Code

(TTOC) 102 Qualified tuition program earnings 93, 112

R

Railroad retirement benefits :

Treated as a pension 28 Treated as social security 31 Records, how long to keep 82 Refund 61-63 Refund information 87 Refund offset 61 Refundable 61

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Enhanced deduction for 110 Separated parents 20 Signing your return 65 Single person 13 Social security and equivalent railroad

retirement benefits 31, 32 Social security number 12, 22 Standard deduction or itemized deductions 35 State and local taxes, taxable refunds, credits,

or offsets of 88 Statutory employees 25 Student loan interest deduction 99

Expenses 98 Surviving spouse, qualifying 15

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Where Do You File?

Mail your return to the address shown below that applies to you. If you want to use a private delivery service, see Private Delivery Services under Filing Requirements, earlier.

TIP

Envelopes without enough postage will be returned to you by the post office. Your envelope may need additional postage if it contains more than five pages or is oversized (for example, it is over ¹ /4″ thick). Also include your complete return address.

! CAUTION

Only the U.S. Postal Service can deliver to P.O. boxes. You can't use a private delivery service to make tax payments required to be sent to a P.O. box.

*If you live in American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands, see Pub. 570.

126