Part — Instruction 8582-CR — Instructions for Form

Caution: Married persons filing separate returns who lived with their spouses at any time during the year aren’t eligible to complete Part II.

Use Part II to figure the credit allowed if you have any credits from rental real estate activities in which you actively participated (other than rehabilitation credits and low-income housing credits). See Rental Activities, earlier, for details.

Line 9. Married persons filing separate returns who lived apart from their spouses at all times during the year must enter $75,000 on line 9 instead of $150,000. Married persons filing separate returns who lived with their spouses at any time during the year aren’t eligible for the special allowance. They must enter -0- on line 16 and go to line 17.

Line 10. To figure modified adjusted gross income, combine all the amounts used to figure adjusted gross income, except don’t take into account:

Any passive activity loss as defined in section 469(d) (1),
Any rental real estate loss allowed to real estate professionals (defined under Activities That Aren’t Passive Activities , earlier),

• The taxable amount of social security and tier 1 railroad retirement benefits,

Include in modified adjusted gross income any portfolio income and expenses that are clearly and directly allocable to portfolio income. Also include any income that is treated as nonpassive income, such as overall gain from a PTP and net income from an activity or item of property subject to the recharacterization of passive income rules. For information on recharacterization of income, see Pub. 925 or Temporary Regulations section 1.469-2T(f). When figuring modified adjusted gross income, any overall loss from an entire disposition of an interest in a passive activity is taken into account as a nonpassive loss if you don’t have any net passive income after combining net income and losses from all other passive activities (that is, Form 8582, line 3 is a loss or zero). If you do have net passive income when you combine the net losses and net income from all other passive activities, the overall loss from the disposition is taken into account as a nonpassive loss only to the extent that it exceeds that net passive income.

Line 12. Don’t enter more than $12,500 on line 12 if you are married filing a separate return and you and your spouse lived apart at all times during the year. Married persons filing separate returns who lived with their spouses at any time during the year aren’t eligible for the special allowance. They must enter -0- on line 16 and go to line 17.

Line 15. Figure the tax attributable to the amount on line 14 as follows.

Note: When using taxable income in the computation below, it isn’t necessary to refigure items that are based on a percentage of adjusted gross income.

Deductible contributions to traditional individual retirement accounts (IRAs) and section 501(c)(18) pension plans,
The deduction allowed for self-employment taxes,
The exclusion from income of interest from series EE and I U.S. savings bonds used to pay higher education expenses,
The exclusion of amounts received under an employer's adoption assistance program,
The student loan interest deduction,
The tuition and fees deduction, or
Foreign-derived intangible income and global intangible low-taxed income.

Instructions for Form 8582-CR (Rev. 12-2025) 9

A. Taxable income . . . . . . . . . . . . .

B. Tax on line A* . . . . . . . . . . . . . . . . . . . . . . .

C. Enter amount from Form 8582-CR,

line 14 . . . . . . . . . . . . . . . . . . .

D. Subtract line C from line A . . . . . . .

E. Tax on line D* . . . . . . . . . . . . . . . . . . . . . . .

F. Subtract line E from line B and enter the result on Form

8582-CR, line 15 . . . . . . . . . . . . . . . . . . . . .

For Form 1040 or 1040-SR, use the Tax Table, Tax Computation Worksheet, or other appropriate method you used to figure your tax. For Form 1041, use the Tax Rate Schedule, Qualified Dividends Tax Worksheet, or Schedule D, whichever applies.