Your Federal Income Tax - Publication # 17

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Department

of the

Treasury

Internal

Revenue

Service

TAX GUIDE

2023

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Your Federal

Income Tax

For Individuals

Publication 17

Catalog Number 10311G

For use in preparing

2023 Returns

Mar 18, 2024

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Your Federal

Income Tax

For Individuals

Contents

What's New ....................... 1

Reminders ........................ 2

Introduction ....................... 3

Part One. The Income Tax Return .......... 6

Filing Information ................ 6

Filing Status ...................21

Dependents ...................26

Tax Withholding and Estimated Tax .....37

Part Two. Income and Adjustments

to Income .....................46

Wages, Salaries, and Other Earnings ....47

Interest Income .................54

7 Social Security and Equivalent Railroad

Retirement Benefits ..............62

Other Income ..................67

9 Individual Retirement Arrangements

(IRAs) .....................78

Part Three. Standard Deduction, Itemized

Deductions, and Other Deductions ......93

Standard Deduction ..............93

Taxes ......................97

Other Itemized Deductions ......... 101

Part Four. Figuring Your Taxes, and

Refundable and Nonrefundable Credits .. 107

How To Figure Your Tax ........... 107

14 Child Tax Credit and Credit for Other

Dependents ................. 109

2023 Tax Table ..................... 112

2023 Tax Computation Worksheet ........ 124

2023 Tax Rate Schedules .............. 124

Your Rights as a Taxpayer ............. 126

How To Get Tax Help ................. 127

Index .......................... 130

Where To File ..................... 140

The explanations and examples in this publication

reflect the interpretation by the Internal Revenue Service

(IRS) of:

•

Tax laws enacted by Congress,

•

Treasury regulations, and

•

Court decisions.

However, the information given does not cover every

situation and is not intended to replace the law or change

its meaning.

All material in this

publication may be

reprinted freely. A

citation to Your Federal

Income Tax (2023)

would be appropriate.

This publication covers some subjects on which a

court may have made a decision more favorable to

taxpayers than the interpretation by the IRS. Until these

differing interpretations are resolved by higher court

decisions or in some other way, this publication will

continue to present the interpretations by the IRS.

All taxpayers have important rights when working with

the IRS. These rights are described in Your Rights as a

Taxpayer in the back of this publication.

Department

of the

Treasury

Internal

Revenue

Service

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What's New

This section summarizes important

tax changes that took effect in

2023. Most of these changes are

discussed in more detail

throughout this publication.

Future developments. For the

latest information about the tax law

topics covered in this publication,

such as legislation enacted after it

was published, go to IRS.gov/

Pub17.

Due date of return. File Form

1040 or 1040-SR by April 15, 2024.

If you live in Maine or Massachu-

setts, you have until April 17, 2024,

because of the Patriots’ Day and

Emancipation Day holidays. See

chapter 1, later.

Additonal child tax credit

amount increased. The maxi-

mum additional child tax credit

amount has increased to $1,600

for each qualifying child.

New clean vehicle credit. The

credit for new qualified plug-in

electric drive motor vehicles has

changed. This credit is now known

as the clean vehicle credit. The

maximum amount of the credit and

some of the requirements to claim

the credit have changed. The credit

is still reported on Form 8936 and

Schedule 3 (Form 1040), line 6f.

For more information, see Form

8936.

Previously owned clean vehicle

credit. This credit is available for

previously owned clean vehicles

acquired and placed in service af-

ter 2022. For more information, see

Form 8936.

Who must file. Generally, the

amount of income you can receive

before you must file a return has

been increased. For more informa-

tion, see chapter 1, later.

Standard deduction amount in-

creased. For 2023, the standard

deduction amount has been in-

creased for all filers. The amounts

are:

•

Single or Married filing sepa-

rately—$13,850;

•

Married filing jointly or Qualify-

ing surviving

spouse—$27,700; and

•

Head of household—$20,800.

See chapter 10, later.

New lines on Schedule 3 (Form

1040). This year Schedule 3

(Form 1040) has new lines.

•

Line 5a will be used to report

the residential clean energy

credit from Form 5695.

•

Line 5b will be used to report

the energy efficient home im-

provement credit from Form

5695.

•

Line 6m will be used to report

the credit for previously

owned clean vehicles from

Form 8936.

•

Line 13c will be used to report

the elective payment election

amount from Form 3800.

Credits for qualified sick and

family leave wages. The credits

for qualified sick and family leave

wages paid in 2023 for leave taken

before April 1, 2021, and for leave

taken after March 31, 2021, and

before October 1, 2021, are now

reported on Schedule 3, line 13z.

See Schedule H (Form 1040) for

more information.

Alternative motor vehicle credit.

The alternative motor vehicle credit

has expired.

Self-employed health insurance

deduction. Use Form 7206 and

its instructions to determine any

amount of the self-employed health

insurance deduction you may be

able to claim and report on Sched-

ule 1 (Form 1040), line 17.

Qualified charitable distribution

one-time election. Beginning in

2023, you can elect to make a

one-time distribution up to $50,000

from an individual retirement ac-

count to charities through a charita-

ble remainder unitrust, or a charita-

ble gift annuity funded only by

qualified distributions. See Pub.

590-B for more information.

Increase in required minimum

distribution age. If you reach age

72 in 2023, the required beginning

date for your first required mini-

mum distribution is April 1, 2025.

See Pub. 590–B for more informa-

tion.

IRA contribution limit increased.

Beginning in 2023, the IRA contri-

bution limit is increased to $6,500

($7,500 for individuals age 50 or

older) from $6,000 ($7,000 for indi-

viduals age 50 or older).

Deferred compensation contri-

bution limit increased. If you

participate in a 401(k) plan, 403(b)

plan, or the federal government’s

Thrift Savings Plan, the total an-

nual amount you can contribute is

increased to $22,500 ($30,000 if

age 50 or older) for 2023. This also

applies to most 457 plans.

Insurance premiums for retired

public safety officers. Eligible re-

tired public safety officers can ex-

clude from income up to $3,000 of

distributions from their eligible re-

tirement plan that is paid directly to

them and is used to pay for health

insurance premiums.

Exception to the 10% additional

tax for early distributions. The

exception to the 10% additional tax

for early distributions include the

following.

•

Distributions from a retirement

plan in connection with feder-

ally declared disasters.

•

Distribution from a retirement

plan made to someone who is

terminally ill.

•

Distributions to firefighters at

age 50 or with 25 years of

service under the plan.

See Form 5329 and Pub. 590-B

for more information.

Direct File. The IRS is taking

steps to implement a Direct File pi-

lot during the 2024 filing season.

This pilot will give eligible taxpay-

ers an option to prepare and elec-

tronically file their 2023 federal tax

returns directly with the IRS for

free. The Direct File pilot will be of-

fered to eligible taxpayers in partic-

ipating states who have relatively

simple tax returns reporting only

certain types of income and claim-

ing limited credits and deductions.

See IRS.gov/DirectFile for pilot in-

formation and updates.

Health flexible spending ar-

rangements (health FSAs) un-

der cafeteria plans. For tax years

beginning in 2023, the dollar limita-

tion under section 1251(i) on volun-

tary employee salary reductions for

contributions to health FSAs is

$3,050.

Temporary allowance of 100%

business meal deduction has

expired. Section 210 of the Tax-

payer Certainty and Disaster Tax

Relief Act of 2020 provided for the

temporary allowance of a 100%

business meal deduction for food

or beverages provided by a restau-

rant and paid or incurred after De-

cember 31, 2020, and before Janu-

ary 1, 2023.

Disaster tax relief. The special

rules that provide for tax-favored

withdrawals and repayments now

apply to disasters that occur on or

after January 26, 2021. See Disas-

ter-Related Relief in Pub. 590-B for

more information.

Distributions to terminally ill in-

dividuals. The exception to the

10% additional tax for early distri-

butions is expanded to apply to

distributions made after December

29, 2022, to an individual who has

been certified by a physician as

having a terminal illness. See Pub.

590-B for more information.

Certain corrective distributions

not subject to 10% early distri-

bution tax. Beginning with distri-

butions made on December 29,

2022, and after, the 10% additional

tax on early distributions will not

apply to the income attributed to a

corrective IRA distribution, as long

as the corrective distribution is

made on or before the due date (in-

cluding extensions) of the income

tax return.

Delayed refund for returns

claiming the additional child tax

credit (ACTC). The IRS cannot is-

sue refunds before mid-February

2024 for returns that properly claim

ACTC. This time frame applies to

the entire refund, not just the por-

tion associated with ACTC.

Standard mileage rate. The

2023 rate for business use of a ve-

hicle is 65.5 cents a mile. The 2023

rate for use of your vehicle to do

volunteer work for certain charita-

ble organizations is 14 cents a

mile. The 2023 rate for operating

expenses for a car when you use it

for medical reasons is 22 cents a

mile.

Modified adjusted gross income

(AGI) limit for traditional IRA

contributions. For 2023, if you

are covered by a retirement plan at

work, your deduction for contribu-

tions to a traditional IRA is reduced

(phased out) if your modified AGI

is:

•

More than $116,000 but less

than $136,000 for a married

couple filing a joint return or a

qualifying surviving spouse,

•

More than $73,000 but less

than $83,000 for a single indi-

vidual or head of household,

•

Less than $10,000 for a mar-

ried individual filing a separate

return.

If you either live with your spouse

or file a joint return, and your

spouse is covered by a retirement

plan at work but you aren't, your

deduction is phased out if your

modified AGI is more than

$218,000 but less than $228,000. If

your modified AGI is $228,000 or

more, you can't take a deduction

for contributions to a traditional

IRA. See How Much Can You De-

duct in chapter 9, later.

Modified AGI limit for Roth IRA

contributions. For 2023, your

Roth IRA contribution limit is re-

duced (phased out) in the following

situations.

•

Your filing status is married fil-

ing jointly or qualifying surviv-

ing spouse and your modified

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AGI is at least $218,000. You

can't make a Roth IRA contri-

bution if your modified AGI is

$228,000 or more.

•

Your filing status is single,

head of household, or married

filing separately and you didn't

live with your spouse at any

time in 2023 and your modi-

fied AGI is at least $138,000.

You can't make a Roth IRA

contribution if your modified

AGI is $153,000 or more.

•

Your filing status is married fil-

ing separately, you lived with

your spouse at any time dur-

ing the year, and your modi-

fied AGI is more than zero.

You can't make a Roth IRA

contribution if your modified

AGI is $10,000 or more. See

Can You Contribute to a Roth

IRA in chapter 9, later.

2024 modified AGI limits. You

can find information about the 2024

contribution and modified AGI lim-

its in Pub. 590-A.

Tax law changes for 2024. When

you figure how much income tax

you want withheld from your pay

and when you figure your estima-

ted tax, consider tax law changes

effective in 2024. For more infor-

mation, see Pub. 505.

Alternative minimum tax (AMT)

exemption amount increased.

The AMT exemption amount is in-

creased to $81,300 ($126,500 if

married filing jointly or qualifying

surviving spouse; $63,250 if mar-

ried filing separately). The income

levels at which the AMT exemption

begins to phase out have in-

creased to $578,150 ($1,156,300 if

married filing jointly or qualifying

surviving spouse).

Reporting requirements for

Form 1099-K. Form 1099-K is is-

sued by third party settlement or-

ganizations and credit card compa-

nies to report payment transactions

made to you for goods and serv-

ices.

You must report all income on

your tax return unless excluded by

law, whether you received the in-

come electronically or not, and

whether you received a Form

1099-K or not. The box 1a and

other amounts reported on Form

1099-K are additional pieces of in-

formation to help determine the

correct amounts to report on your

return.

If you received a Form 1099-K

that shows payments you didn’t re-

ceive or is otherwise incorrect,

contact the Form 1099-K issuer.

Don’t contact the IRS; the IRS can’t

correct an incorrect Form 1099-K.

If you can’t get it corrected, or you

sold a personal item at a loss, see

the instructions for Schedule 1,

lines 8z and 24z, later, for more re-

porting information.

All IRS information about Form

1099-K is available by going to

IRS.gov/1099K.

Reminders

Listed below are important

reminders and other items that may

help you file your 2023 tax return.

Many of these items are explained

in more detail later in this

publication.

Publication 17 changes. We re-

moved the following 2019 chapters

from this publication: 6, 8, 9, 10,

13, 14, 15, 16, 18, 19, 20, 22, 24,

25, 26, 29, 30, 31, 33, 34, 35, and

36. You can find most of the infor-

mation previously found in those

chapters in the primary publication.

Please see Publication 17

Changes, later.

Special rules for eligible gains

invested in Qualified Opportu-

nity Funds. If you have an eligible

gain, you can invest that gain into a

Qualified Opportunity Fund (QOF)

and elect to defer part or all of the

gain that is otherwise includible in

income. The gain is deferred until

the date you sell or exchange the

investment or December 31, 2026,

whichever is earlier. You may also

be able to permanently exclude

gain from the sale or exchange of

an investment in a QOF if the in-

vestment is held for at least 10

years. For information about what

types of gains entitle you to elect

these special rules, see the In-

structions for Schedule D (Form

1040). For information on how to

elect to use these special rules,

see the Instructions for Form 8949.

Secure your tax records from

identity theft. Identity theft occurs

when someone uses your personal

information, such as your name,

SSN, or other identifying informa-

tion, without your permission, to

commit fraud or other crimes. An

identity thief may use your SSN to

get a job or may file a tax return us-

ing your SSN to receive a refund.

For more information about identity

theft and how to reduce your risk

from it, see chapter 1, later.

Taxpayer identification num-

bers. You must provide the tax-

payer identification number for

each person for whom you claim

certain tax benefits. This applies

even if the person was born in

2023. Generally, this number is the

person's SSN. See chapter 1, later.

Filing status name changed to

qualifying surviving spouse.

The filing status qualifying

widow(er) is now called qualifying

surviving spouse. The rules for the

filing status have not changed. The

same rules that applied for qualify-

ing widow(er) apply to qualifying

surviving spouse.

New lines 1a through 1z on

Forms 1040 and 1040-SR. This

year, line 1 is expanded and there

are new lines 1a through 1z. Some

amounts that in prior years were re-

ported on Form 1040, and some

amounts reported on Form

1040-SR, are now reported on

Schedule 1.

•

Scholarships and fellowship

grants are now reported on

Schedule 1, line 8r.

•

Pension or annuity from a

nonqualified deferred com-

pensation plan or a non-gov-

ernmental section 457 plan

are now reported on Schedule

1, line 8t.

•

Wages earned while incarcer-

ated are now reported on

Schedule 1, line 8u.

New line 6c on Forms 1040 and

1040-SR. A checkbox was added

on line 6c. Taxpayers who elect to

use the lump-sum election method

for their benefits will check this box.

See Instructions for Form 1040.

Child tax credit (CTC) enhance-

ments have expired. Many

changes to the CTC for 2021 im-

plemented by the American Res-

cue Plan Act of (the ARP) 2021

have expired. For tax year 2023,

the follow apply.

•

The enhanced credit allowed

for qualifying children under

age 6 and children under age

18 has expired. For 2023, the

initial amount of the CTC is

$2,000 for each qualifying

child. The credit amount be-

gins to phase out where modi-

fied AGI income exceeds

$200,000 ($400,000 in the

case of a joint return). The

amount of the CTC that can

be claimed as a refundable

credit is limited as it was in

2020 except that the maxi-

mum ACTC amount for each

qualifying child increased to

$1,600.

•

The increased age allowance

for a qualifying child has ex-

pired. A child must be under

age 17 at the end of 2023 to

be a qualifying child.

For more information, see the In-

structions for Schedule 8812 (Form

1040).

Changes to the earned income

credit (EIC). The enhancements

for taxpayers without a qualifying

child implemented by the ARP

don't apply for 2023. This means,

to claim the EIC without a qualify-

ing child in 2023, you must be at

least age 25 but under age 65 at

the end of 2023. If you are married

filing a joint return, either you or

your spouse must be at least age

25 but under age 65 at the end of

2023. It doesn't matter which

spouse meets the age require-

ment, as long as one of the spou-

ses does.

Premium tax credit (PTC). The

ARP expanded the PTC by elimi-

nating the limitation that a taxpay-

er's household income may not ex-

ceed 400% of the federal poverty

line and generally increases the

credit amounts. For more informa-

tion, see Pub. 974 and Form 8962

and its instructions.

Credits for sick and family leave

for certain self-employed indi-

viduals are not available. The

credits for sick and family leave for

certain self-employed individuals

were not extended and you can no

longer claim these credits.

Identity verification. The IRS

launched an improved identity veri-

fication and sign-in process that

enables more people to securely

access and use IRS online tools

and applications. To provide verifi-

cation services, the IRS is using

ID.me, a trusted technology pro-

vider. The new process is one

more step the IRS is taking to en-

sure that taxpayer information is

provided only to the person who le-

gally has a right to the data. Tax-

payers using the new mo-

bile-friendly verification procedure

can gain entry to existing IRS on-

line services such as the

Child Tax

Credit Update Portal, Online Ac-

count, Get Transcript Online, Get

an Identity Protection PIN (IP PIN),

and Online Payment Agreement.

Additional IRS applications will

transition to the new method over

the next year. Each online service

will also provide information that

will instruct taxpayers on the steps

they need to follow for access to

the service. You can also see

IR-2021-228 for more information.

Adoption credit. The adoption

credit and the exclusion for em-

ployer-provided adoption benefits

are both $15,950 per eligible child

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in 2023. The amount begins to

phase out if you have modified AGI

in excess of $239,230 and is com-

pletely phased out if your modified

AGI is $279,230 or more.

ACTC and bona fide residents

of Puerto Rico. Bona fide resi-

dents of Puerto Rico are no longer

required to have three or more

qualifying children to be eligible to

claim the ACTC. Bona fide resi-

dents of Puerto Rico may be eligi-

ble to claim the ACTC if they have

one or more qualifying children.

Foreign-source income. If you

are a U.S. citizen with income from

sources outside the United States

(foreign income), you must report

all such income on your tax return

unless it is exempt by law or a tax

treaty. This is true whether you live

inside or outside the United States

and whether or not you receive a

Form W-2 or Form 1099 from the

foreign payer. This applies to

earned income (such as wages

and tips) as well as unearned in-

come (such as interest, dividends,

capital gains, pensions, rents, and

royalties).

If you live outside the United

States, you may be able to exclude

part or all of your foreign earned in-

come. For details, see Pub. 54.

Foreign financial assets. If you

had foreign financial assets in

2023, you may have to file Form

8938 with your return. See Form

8938 and its instructions or go to

IRS.gov/Form8938 for details.

Automatic 6-month extension to

file tax return. You can get an au-

tomatic 6-month extension of time

to file your tax return. See chap-

ter 1, later.

Payment of taxes. You can pay

your taxes by making electronic

payments online; from a mobile de-

vice using the IRS2Go app; or in

cash, or by check or money order.

Paying electronically is quick, easy,

and faster than mailing in a check

or money order. See chapter 1,

later.

Faster ways to file your return.

The IRS offers fast, accurate ways

to file your tax return information

without filing a paper tax return.

You can use IRS e-file (electronic

filing). See chapter 1, later.

Free electronic filing. You may

be able to file your 2023 taxes on-

line for free. See chapter 1, later.

Change of address. If you

change your address, notify the

IRS. See chapter 1, later.

Refund on a late-filed return. If

you were due a refund but you did

not file a return, you must generally

file your return within 3 years from

the date the return was due (includ-

ing extensions) to get that refund.

See chapter 1, later.

Frivolous tax returns. The IRS

has published a list of positions

that are identified as frivolous. The

penalty for filing a frivolous tax re-

turn is $5,000. See chapter 1, later.

Filing erroneous claim for re-

fund or credit. You may have to

pay a penalty if you file an errone-

ous claim for refund or credit. See

chapter 1, later.

Access your online account.

You must authenticate your identity.

To securely log into your federal tax

account, go to IRS.gov/Account.

View the amount you owe, review

your last 5 years of payment his-

tory, access online payment op-

tions, and create or modify an on-

line payment agreement. You can

also access your tax records on-

line.

Health care coverage. If you

need health care coverage, go to

HealthCare.gov to learn about

health insurance options for you

and your family, how to buy health

insurance, and how you might

qualify to get financial assistance

to buy health insurance.

Disclosure, Privacy Act, and pa-

perwork reduction information.

The IRS Restructuring and Reform

Act of 1998, the Privacy Act of

1974, and the Paperwork Reduc-

tion Act of 1980 require that when

we ask you for information, we

must first tell you what our legal

right is to ask for the information,

why we are asking for it, how it will

be used, what could happen if we

do not receive it, and whether your

response is voluntary, required to

obtain a benefit, or mandatory un-

der the law. A complete statement

on this subject can be found in your

tax form instructions.

Preparer e-file mandate. Most

paid preparers must e-file returns

they prepare and file. Your preparer

may make you aware of this re-

quirement and the options availa-

ble to you.

Treasury Inspector General for

Tax Administration. If you want

to confidentially report misconduct,

waste, fraud, or abuse by an IRS

employee, you can call

800-366-4484 (call 800-877-8339

if you are deaf, hard of hearing, or

have a speech disability, and are

using TTY/TDD equipment). You

can remain anonymous.

Photographs of missing chil-

dren. The IRS is a proud partner

with the National Center for

Missing & Exploited Children®

(NCMEC). Photographs of missing

children selected by the Center

may appear in this publication on

pages that would otherwise be

blank. You can help bring these

children home by looking at the

photographs and calling

1-800-THE-LOST

(1-800-843-5678) if you recognize

a child.

Introduction

This publication covers the general

rules for filing a federal income tax

return. It supplements the informa-

tion contained in your tax form in-

structions. It explains the tax law to

make sure you pay only the tax you

owe and no more.

How this publication is ar-

ranged. Pub. 17 closely follows

Form 1040, U.S. Individual Income

Tax Return, and Form 1040-SR,

U.S. Tax Return for Seniors, and

their three Schedules 1 through 3.

Pub. 17 is divided into four parts.

Each part is further divided into

chapters, most of which generally

discuss one line of the form or one

line of one of the three schedules.

The introduction at the beginning

of each part lists the schedule(s)

discussed in that part.

The table of contents inside the

front cover, the introduction to each

part, and the index in the back of

the publication are useful tools to

help you find the information you

need.

What is in this publication. This

publication begins with the rules for

filing a tax return. It explains:

1. Who must file a return,

2. When the return is due,

3. How to e-file your return, and

4. Other general information.

It will help you identify which filing

status you qualify for, whether you

can claim any dependents, and

whether the income you receive is

taxable. The publication goes on to

explain the standard deduction, the

kinds of expenses you may be able

to deduct, and the various kinds of

credits you may be able to take to

reduce your tax.

Throughout this publication are

examples showing how the tax law

applies in typical situations. Also

throughout this publication are

flowcharts and tables that present

tax information in an easy-to-un-

derstand manner.

Many of the subjects discussed

in this publication are discussed in

greater detail in other IRS publica-

tions. References to those other

publications are provided for your

information.

Icons. Small graphic symbols,

or icons, are used to draw your at-

tention to special information. See

Table 1 for an explanation of each

icon used in this publication.

What is not covered in this pub-

lication. Some material that you

may find helpful is not included in

this publication but can be found in

your tax form instructions booklet.

This includes lists of:

•

Where to report certain items

shown on information docu-

ments, and

•

Tax Topics you can read at

IRS.gov/TaxTopics.

If you operate your own busi-

ness or have other self-employ-

ment income, such as from baby-

sitting or selling crafts, see the

following publications for more in-

formation.

•

Pub. 334, Tax Guide for Small

Business.

•

Pub. 225, Farmer's Tax Guide.

•

Pub. 587, Business Use of

Your Home.

Help from the IRS. There are

many ways you can get help from

the IRS. These are explained un-

der How To Get Tax Help at the

end of this publication.

Comments and suggestions.

We welcome your comments about

this publication and suggestions for

future editions.

You can send us comments

through IRS.gov/FormComments.

Or, you can write to the Internal

Revenue Service, Tax Forms and

Publications, 1111 Constitution

Ave. NW, IR-6526, Washington,

DC 20224.

Although we can’t respond indi-

vidually to each comment received,

we do appreciate your feedback

and will consider your comments

and suggestions as we revise our

tax forms, instructions, and publi-

cations. Don’t send tax questions,

tax returns, or payments to the

above address.

Getting answers to your tax

questions. If you have a tax

Publication 17 (2023) 3

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question not answered by this pub-

lication or the How To Get Tax Help

section at the end of this publica-

tion, go to the IRS Interactive Tax

Assistant page at IRS.gov/Help/ITA

where you can find topics by using

the search feature or viewing the

categories listed.

Getting tax forms, instruc-

tions, and publications. Go to

IRS.gov/Forms to download cur-

rent and prior-year forms, instruc-

tions, and publications.

Ordering tax forms, instruc-

tions, and publications. Go to

IRS.gov/OrderForms to order cur-

rent forms, instructions, and publi-

cations; call 800-829-3676 to order

prior-year forms and instructions.

The IRS will process your order for

forms and publications as soon as

possible. Don’t resubmit requests

you’ve already sent us. You can get

forms and publications faster on-

line.

IRS mission. Provide America's

taxpayers top-quality service by

helping them understand and meet

their tax responsibilities and en-

force the law with integrity and fair-

ness to all.

Publication 17 Changes

Note. This publication does not cover the topics listed in the following table. Please see the primary publication.

Chapter Removed Title of Chapter Primary Source

6 Tip Income Pub. 531, Reporting Tip Income

8 Dividends and Other Distributions Pub. 550, Investment Income and

Expenses

9 Rental Income and Expenses Pub. 527, Residential Rental Property

(Including Rental of Vacation Homes)

10 Retirement Plans, Pensions, and Annuities Pub. 575, Pension and Annuity Income

13 Basis of Property Pub. 551, Basis of Assets

14 Sale of Property Pub. 550

15 Selling Your Home Pub. 523, Selling Your Home

16 Reporting Gains and Losses Pub. 550

18 Alimony Pub. 504, Divorced or Separated

Individuals

19 Education-Related Adjustments Pub. 970, Tax Benefits for Education

20 Other Adjustments to Income Pub. 463, Travel, Gift, and Car Expenses

22 Medical and Dental Expenses Pub. 502, Medical and Dental Expenses

24 Interest Expense Pub. 550

Pub. 936, Home Mortgage Interest

Deduction

25 Charitable Contributions Pub. 561, Determining the Value of

Donated Property

Pub. 526, Charitable Contributions

26 Nonbusiness Casualty and Theft Losses Pub. 547, Casualties, Disasters, and Thefts

29 Tax on Unearned Income of Certain Minor

Children

Form 8615, Tax for Certain Children Who

Have Unearned Income

30 Child and Dependent Care Credit Pub. 503, Child and Dependent Care

Expenses

31 Credit for the Elderly or the Disabled Pub. 524, Credit for the Elderly or the

Disabled

33 Education Credits Pub. 970, Tax Benefits for Education

34 Earned Income Credit (EIC) Pub. 596, Earned Income Credit (EIC)

35 Premium Tax Credit Pub. 974, Premium Tax Credit (PTC)

36 Other Credits

4 Publication 17 (2023)

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Table 1. Legend of Icons

Icon Explanation

CAUTION

Items that may cause you particular problems, or an alert about pending legislation that may be enacted after

this publication goes to print.

An Internet site or an email address.

An address you may need.

RECORDS

Items you should keep in your personal records.

Items you may need to figure or a worksheet you may need to complete and keep for your records.

An important phone number.

TIP

Helpful information you may need.

Publication 17 (2023) 5

Part One.

The Income Tax

Return

The four chapters in this part provide basic information on the tax system.

They take you through the first steps of filling out a tax return. They also

provide information about dependents, and discuss recordkeeping

requirements, IRS e-file (electronic filing), certain penalties, and the two

methods used to pay tax during the year: withholding and estimated tax.

The Form 1040 and Form 1040-SR schedules that are discussed in these

chapters are:

•

Schedule 1, Additional Income and Adjustments to Income; and

•

Schedule 3 (Part II), Other Payments and Refundable Credits.

Filing

Information

What's New

Due date of return. File Form 1040 or

1040-SR by April 15, 2024. If you live in Maine

or Massachusetts, you have until April 17, 2024,

because of the Patriots’ Day and Emancipation

Day holidays.

New lines on Schedule 3. This year Schedule

3 has new lines.

•

Line 5a will be used to report the residen-

tial clean energy credit from Form 5695.

•

Line 5b will be used to report the energy

efficient home improvement credit from

Form 5695.

•

Line 6m will be used to report the credit for

previously owned clean vehicles from Form

8936.

•

Line 13c will be used to report the elective

payment election amount from Form 3800.

Who must file. Generally, the amount of in-

come you can receive before you must file a re-

turn has been increased. See Table 1-1, Ta-

ble 1-2, and Table 1-3 for the specific amounts.

Reminders

File online. Rather than filing a return on pa-

per, you may be able to file electronically using

IRS e-file. For more information, see Why

Should I File Electronically, later.

Access your online account (individual tax-

payers only). Go to IRS.gov/Account to se-

curely access information about your federal tax

account.

•

View the amount you owe and a break-

down by tax year.

•

See payment plan details or apply for a

new payment plan.

•

Make a payment, view 5 years of payment

history and any pending or scheduled pay-

ments.

•

Access your tax records, including key

data from your most recent tax return, your

economic impact payment amounts, and

transcripts.

•

View digital copies of select notices from

the IRS.

•

Approve or reject authorization requests

from tax professionals.

•

View your address on file or manage your

communication preferences.

•

Go to IRS.gov/SecureAccess to view the

required identity authentication process.

Change of address. If you change your ad-

dress, you should notify the IRS. You can use

Form 8822 to notify the IRS of the change. See

Change of Address, later, under What Happens

After I File.

Enter your social security number. You must

enter your social security number (SSN) in the

spaces provided on your tax return. If you file a

joint return, enter the SSNs in the same order

as the names.

Direct deposit of refund. Instead of getting a

paper check, you may be able to have your re-

fund deposited directly into your account at a

bank or other financial institution. See Direct

Deposit under Refunds, later. If you choose di-

rect deposit of your refund, you may be able to

split the refund among two or three accounts.

Pay online or by phone. If you owe additional

tax, you may be able to pay online or by phone.

See How To Pay, later.

Installment agreement. If you can’t pay the

full amount due with your return, you may ask to

make monthly installment payments. See In-

stallment Agreement, later, under Amount You

Owe. You may be able to apply online for a pay-

ment agreement if you owe federal tax, interest,

and penalties.

Automatic 6-month extension. You can get

an automatic 6-month extension to file your tax

return if, no later than the date your return is

due, you file Form 4868. See Automatic

Extension, later.

Service in combat zone. You are allowed ex-

tra time to take care of your tax matters if you

are a member of the Armed Forces who served

in a combat zone, or if you served in a combat

zone in support of the Armed Forces. See Indi-

viduals Serving in Combat Zone, later, under

When Do I Have To File.

Adoption taxpayer identification number. If

a child has been placed in your home for purpo-

ses of legal adoption and you won't be able to

get a social security number for the child in time

to file your return, you may be able to get an

adoption taxpayer identification number (ATIN).

For more information, see Social Security Num-

ber (SSN), later.

Taxpayer identification number for aliens. If

you or your dependent is a nonresident or resi-

dent alien who doesn't have and isn't eligible to

get a social security number, file Form W-7, Ap-

plication for IRS Individual Taxpayer Identifica-

tion Number, with the IRS. For more informa-

tion, see Social Security Number (SSN), later.

Individual taxpayer identification number

(ITIN) renewal. Some ITINs must be renewed.

If you haven't used your ITIN on a U.S. tax re-

turn at least once for tax years 2020, 2021, or

2022, it has expired and must be renewed if you

need to file a U.S. federal tax return. You don't

need to renew your ITIN if you don't need to file

a federal tax return. You can find more informa-

tion at IRS.gov/ITIN.

ITINs assigned before 2013 have ex-

pired and must be renewed if you need

to file a tax return. If you previously

submitted a renewal application and it was ap-

proved, you do not need to renew again unless

you haven't used your ITIN on a federal tax re-

turn at least once for tax years 2020, 2021, or

2022.

Frivolous tax submissions. The IRS has

published a list of positions that are identified as

frivolous. The penalty for filing a frivolous tax re-

turn is $5,000. Also, the $5,000 penalty will ap-

ply to other specified frivolous submissions. For

more information, see Civil Penalties, later.

Introduction

This chapter discusses the following topics.

•

Whether you have to file a return.

TIP

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6 Chapter 1 Filing Information Publication 17 (2023)

•

How to file electronically.

•

How to file for free.

•

When, how, and where to file your return.

•

What happens if you pay too little or too

much tax.

•

What records you should keep and how

long you should keep them.

•

How you can change a return you have al-

ready filed.

Do I Have To

File a Return?

You must file a federal income tax return if you

are a citizen or resident of the United States or

a resident of Puerto Rico and you meet the filing

requirements for any of the following categories

that apply to you.

1. Individuals in general. (There are special

rules for individuals whose spouse has

died, executors, administrators, legal rep-

resentatives, U.S. citizens and residents

living outside the United States, residents

of Puerto Rico, and individuals with in-

come from U.S. territories.)

2. Dependents.

3. Certain children under age 19 or full-time

students.

4. Self-employed persons.

5. Aliens.

The filing requirements for each category are

explained in this chapter.

The filing requirements apply even if you

don't owe tax.

Even if you don't have to file a return, it

may be to your advantage to do so.

See Who Should File, later.

File only one federal income tax return

for the year regardless of how many

jobs you had, how many Forms W-2

you received, or how many states you lived in

during the year. Don't file more than one original

return for the same year, even if you haven’t re-

ceived your refund or haven’t heard from the

IRS since you filed.

Individuals—In General

If you are a U.S. citizen or resident, whether you

must file a return depends on three factors.

1. Your gross income.

2. Your filing status.

3. Your age.

To find out whether you must file, see Ta-

ble 1-1, Table 1-2, and Table 1-3. Even if no ta-

ble shows that you must file, you may need to

file to get money back. See Who Should File,

later.

Gross income. This includes all income you

receive in the form of money, goods, property,

and services that isn't exempt from tax. It also

includes income from sources outside the Uni-

ted States or from the sale of your main home

TIP

CAUTION

(even if you can exclude all or part of it). Include

part of your social security benefits if:

1. You were married, filing a separate return,

and you lived with your spouse at any time

during 2023; or

2. Half of your social security benefits plus

your other gross income and any tax-ex-

empt interest is more than $25,000

($32,000 if married filing jointly).

If either (1) or (2) applies, see the Instructions

for Form 1040 or Pub. 915 to figure the social

security benefits you must include in gross in-

come.

Common types of income are discussed in

Part Two of this publication.

Community property states. Community

property states include Arizona, California,

Idaho, Louisiana, Nevada, New Mexico, Texas,

Washington, and Wisconsin. If you and your

spouse lived in a community property state, you

must usually follow state law to determine what

is community property and what is separate in-

come. For details, see Form 8958 and Pub.

555.

Nevada, Washington, and California do-

mestic partners. A registered domestic part-

ner in Nevada, Washington, or California must

generally report half the combined community

income of the individual and their domestic

partner. See Pub. 555.

Self-employed individuals. If you are

self-employed, your gross income includes the

amount on line 7 of Schedule C (Form 1040),

Profit or Loss From Business; and line 9 of

Schedule F (Form 1040), Profit or Loss From

Farming. See Self-Employed Persons, later, for

more information about your filing requirements.

If you don't report all of your self-em-

ployment income, your social security

benefits may be lower when you retire.

Filing status. Your filing status depends on

whether you are single or married and on your

family situation. Your filing status is determined

on the last day of your tax year, which is De-

cember 31 for most taxpayers. See chapter 2

for an explanation of each filing status.

Age. If you are 65 or older at the end of the

year, you can generally have a higher amount of

gross income than other taxpayers before you

must file. See Table 1-1. You are considered 65

on the day before your 65th birthday. For exam-

ple, if your 65th birthday is on January 1, 2024,

you are considered 65 for 2023.

Surviving Spouses,

Executors, Administrators,

and Legal Representatives

You must file a final return for a decedent (a per-

son who died) if both of the following are true.

•

Your spouse died in 2023 or you are the

executor, administrator, or legal represen-

tative.

•

The decedent met the filing requirements

at the date of death.

CAUTION

Table 1-1. 2023 Filing Requirements for Most Taxpayers

IF your filing status is...

AND at the end of 2023 you

were...*

THEN file a return if

your gross income

was at least...**

Single under 65 $13,850

65 or older $15,700

Married filing jointly*** under 65 (both spouses) $27,700

65 or older (one spouse) $29,200

65 or older (both spouses) $30,700

Married filing separately any age $5

Head of household under 65 $20,800

65 or older $22,650

Qualifying surviving spouse under 65 $27,700

65 or older $29,200

* If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse

died in 2023 or if you are preparing a return for someone who died in 2023, see Pub. 501.)

** Gross income means all income you received in the form of money, goods, property, and services that

isn't exempt from tax, including any income from sources outside the United States or from the sale of

your main home (even if you can exclude part or all of it). Don't include any social security benefits unless

(a) you are married filing a separate return and you lived with your spouse at any time during 2023, or (b)

one-half of your social security benefits plus your other gross income and any tax-exempt interest is more

than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the Instructions for Form 1040 or

Pub. 915 to figure the taxable part of social security benefits you must include in gross income. Gross

income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a

business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring

gross income, don't reduce your income by any losses, including any loss on Schedule C, line 7, or

Schedule F, line 9.

*** If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross

income was at least $5, you must file a return regardless of your age.

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Publication 17 (2023) Chapter 1 Filing Information 7

For more information on rules for filing a de-

cedent's final return, see Pub. 559.

U.S. Citizens and Resident Aliens

Living Abroad

To determine whether you must file a return, in-

clude in your gross income any income you re-

ceived abroad, including any income you can

exclude under the foreign earned income exclu-

sion. For information on special tax rules that

may apply to you, see Pub. 54. It is available on-

line and at most U.S. embassies and consu-

lates. See How To Get Tax Help in the back of

this publication.

Residents of Puerto Rico

If you are a U.S. citizen and also a bona fide

resident of Puerto Rico, you must generally file

a U.S. income tax return for any year in which

you meet the income requirements. This is in

addition to any legal requirement you may have

to file an income tax return with Puerto Rico.

If you are a bona fide resident of Puerto Rico

for the entire year, your U.S. gross income

doesn't include income from sources within

Puerto Rico. It does, however, include any in-

come you received for your services as an em-

ployee of the United States or a U.S. agency. If

you receive income from Puerto Rican sources

that isn't subject to U.S. tax, you must reduce

your standard deduction. As a result, the

amount of income you must have before you are

required to file a U.S. income tax return is lower

than the applicable amount in Table 1-1 or Ta-

ble 1-2. For more information, see Pub. 570.

Individuals With Income From

U.S. Territories

If you had income from Guam, the Common-

wealth of the Northern Mariana Islands, Ameri-

can Samoa, or the U.S. Virgin Islands, special

rules may apply when determining whether you

must file a U.S. federal income tax return. In ad-

dition, you may have to file a return with the indi-

vidual island government. See Pub. 570 for

more information.

Dependents

If you are a dependent (one who meets the de-

pendency tests in chapter 3), see Table 1-2 to

find out whether you must file a return. You must

also file if your situation is described in Ta-

ble 1-3.

Responsibility of parent. Generally, a child is

responsible for filing their own tax return and for

paying any tax on the return. If a dependent

child must file an income tax return but can’t file

due to age or any other reason, then a parent,

guardian, or other legally responsible person

must file it for the child. If the child can’t sign the

return, the parent or guardian must sign the

child's name followed by the words “By (your

signature), parent for minor child.”

Child's earnings. Amounts a child earns by

performing services are included in the child’s

gross income and not the gross income of the

parent. This is true even if under local law the

child's parent has the right to the earnings and

may actually have received them. But if the child

doesn't pay the tax due on this income, the pa-

rent is liable for the tax.

Certain Children Under

Age 19 or Full-Time

Students

If a child's only income is interest and dividends

(including capital gain distributions and Alaska

Permanent Fund dividends), the child was un-

der age 19 at the end of 2023 or was a full-time

student under age 24 at the end of 2023, and

certain other conditions are met, a parent can

elect to include the child's income on the pa-

rent's return. If this election is made, the child

doesn't have to file a return. See Instructions for

Form 8814, Parents’ Election To Report Child’s

Interest and Dividends.

Self-Employed Persons

You are self-employed if you:

•

Carry on a trade or business as a sole pro-

prietor,

•

Are an independent contractor,

•

Are a member of a partnership, or

•

Are in business for yourself in any other

way.

Self-employment can include work in addi-

tion to your regular full-time business activities,

such as certain part-time work you do at home

or in addition to your regular job.

You must file a return if your gross income is

at least as much as the filing requirement

amount for your filing status and age (shown in

Table 1-1). Also, you must file Form 1040 or

1040-SR and Schedule SE (Form 1040),

Self-Employment Tax, if:

1. Your net earnings from self-employment

(excluding church employee income) were

$400 or more, or

2. You had church employee income of

$108.28 or more. (See Table 1-3.)

Use Schedule SE (Form 1040) to figure your

self-employment tax. Self-employment tax is

comparable to the social security and Medicare

tax withheld from an employee's wages. For

more information about this tax, see Pub. 334.

Employees of foreign governments or in-

ternational organizations. If you are a U.S.

citizen who works in the United States for an in-

ternational organization, a foreign government,

or a wholly owned instrumentality of a foreign

government, and your employer isn't required to

withhold social security and Medicare taxes

from your wages, you must include your earn-

ings from services performed in the United

States when figuring your net earnings from

self-employment.

Ministers. You must include income from

services you performed as a minister when fig-

uring your net earnings from self-employment,

unless you have an exemption from self-em-

ployment tax. This also applies to Christian Sci-

ence practitioners and members of a religious

order who have not taken a vow of poverty. For

more information, see Pub. 517.

Aliens

Your status as an alien (resident, nonresident,

or dual-status) determines whether and how

you must file an income tax return.

The rules used to determine your alien sta-

tus are discussed in Pub. 519.

Resident alien. If you are a resident alien for

the entire year, you must file a tax return follow-

ing the same rules that apply to U.S. citizens.

Use the forms discussed in this publication.

Nonresident alien. If you are a nonresident

alien, the rules and tax forms that apply to you

are different from those that apply to U.S. citi-

zens and resident aliens. See Pub. 519 to find

out if U.S. income tax laws apply to you and

which forms you should file.

Dual-status taxpayer. If you are a resident

alien for part of the tax year and a nonresident

alien for the rest of the year, you are a dual-sta-

tus taxpayer. Different rules apply for each part

of the year. For information on dual-status tax-

payers, see Pub. 519.

Who Should File

Even if you don't have to file, you should file a

federal income tax return to get money back if

any of the following conditions apply.

1. You had federal income tax withheld or

made estimated tax payments.

2. You qualify for the earned income credit.

See Pub. 596 for more information.

3. You qualify for the additional child tax

credit. See chapter 14 for more informa-

tion.

4. You qualify for the premium tax credit. See

Pub. 974 for more information.

5. You qualify for the American opportunity

credit. See Pub. 970 for more information.

6. You qualify for the credit for federal tax on

fuels. See chapter 13 for more information.

Form 1040 or 1040-SR

Use Form 1040 or 1040-SR to file your return.

(But also see Why Should I File Electronically,

later.)

You can use Form 1040 or 1040-SR to re-

port all types of income, deductions, and cred-

its.

Why Should I File

Electronically?

Electronic Filing

If your adjusted gross income (AGI) is less than

a certain amount, you are eligible for Free File,

a free tax software service offered by IRS part-

ners, to prepare and e-file your return for free. If

your income is over the amount, you are still eli-

gible for Free File Fillable Forms, an electronic

version of IRS paper forms. Table 1-4 lists the

free ways to electronically file your return.

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8 Chapter 1 Filing Information Publication 17 (2023)

IRS e-file uses automa-

tion to replace most of the

manual steps needed to process paper returns.

As a result, the processing of e-file returns is

faster and more accurate than the processing of

paper returns. However, as with a paper return,

you are responsible for making sure your return

contains accurate information and is filed on

time.

If your return is filed with IRS e-file, you will re-

ceive an acknowledgment that your return was

received and accepted. If you owe tax, you can

e-file and pay electronically. The IRS has pro-

cessed more than one billion e-filed returns

safely and securely. Using e-file doesn't affect

your chances of an IRS examination of your re-

turn.

Requirements for an electronic return. To

file your return electronically, you must sign the

return electronically using a personal identifica-

tion number (PIN). If you are filing online, you

must use a Self-Select PIN. For 2023, if we is-

sued you an identity protection personal identifi-

cation number (IP PIN) (as described in more

detail below), all six digits of your IP PIN must

appear in the IP PIN spaces provided next to

the space for your occupation for your elec-

tronic signature to be complete. Failure to in-

clude an issued IP PIN on the electronic return

will result in an invalid signature and a rejected

return. If you are filing a joint return and both

taxpayers were issued an IP PIN, enter both IP

PINs in the spaces provided. If you are filing

electronically using a tax practitioner, you can

use a Self-Select PIN or a Practitioner PIN.

Self-Select PIN. The Self-Select PIN method

allows you to create your own PIN. If you are

married filing jointly, you and your spouse will

each need to create a PIN and enter these PINs

as your electronic signatures.

A PIN is any combination of five digits you

choose except five zeros. If you use a PIN, there

is nothing to sign and nothing to mail—not even

your Forms W-2.

Your electronic return is considered a valid

signed return only when it includes your PIN;

last name; date of birth; IP PIN, if applicable;

and AGI from your originally filed 2022 federal

income tax return, if applicable. If you're filing

jointly, your electronic return must also include

your spouse's PIN; last name; date of birth; IP

PIN, if applicable; and AGI, if applicable, in or-

der to be considered validly signed. Don't use

AGI from an amended return (Form 1040-X) or

a math error correction made by the IRS. AGI is

the amount shown on your 2022 Form 1040 or

Form 1040-SR, line 11. If you don't have your

2022 income tax return, you can request a tran-

script by using our automated self-service tool.

Go to IRS.gov/Transcript. (If you filed electroni-

cally last year, you, and your spouse if filing

jointly, may use your prior year PIN to verify your

identity instead of your prior year AGI. The prior

year PIN is the five-digit PIN you used to elec-

tronically sign your 2022 return.) You will also be

prompted to enter your date of birth.

You can’t use the Self-Select PIN

method if you are a first-time filer under

age 16 at the end of 2023.

Practitioner PIN. The Practitioner PIN method

allows you to authorize your tax practitioner to

enter or generate your PIN. Your electronic re-

turn is considered a validly signed return only

when it includes your PIN; last name; date of

birth; and IP PIN, if applicable. If you’re filing

jointly, your electronic return must also include

your spouse’s PIN; last name; date of birth; and

IP PIN, if applicable, in order to be considered a

validly signed return. The practitioner can pro-

vide you with details.

Form 8453. You must send in a paper Form

8453 if you have to attach certain forms or other

documents that can’t be electronically filed. For

details, see Form 8453. For more details, visit

IRS.gov/efile.

Identity Protection PIN. If the IRS gave you

an identity protection personal identification

number (IP PIN), enter it in the spaces provided

on your tax form. If the IRS hasn’t given you this

type of number, leave these spaces blank. For

more information, see the Instructions for Form

1040.

All taxpayers are now eligible for an IP

PIN. For more information, see Pub.

5477. To apply for an IP PIN, go to

IRS.gov/IPPIN and use the Get an IP PIN tool.

Power of attorney. If an agent is signing your

return for you, a power of attorney (POA) must

be filed. Attach the POA to Form 8453 and file it

using that form's instructions. See Signatures,

later, for more information on POAs.

State returns. In most states, you can file an

electronic state return simultaneously with your

federal return. For more information, check with

your local IRS office, state tax agency, tax pro-

fessional, or the IRS website at IRS.gov/efile.

CAUTION

TIP

2023 Filing Requirements for Dependents

See chapter 3 to find out if someone can claim you as a dependent.

If your parents (or someone else) can claim you as a dependent, use this table to see if you

must file a return. (See Table 1-3 for other situations when you must file.)

In this table, unearned income includes taxable interest, ordinary dividends, and capital gain

distributions. It also includes unemployment compensation, taxable social security benefits,

pensions, annuities, and distributions of unearned income from a trust. Earned income includes

salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. (See

Scholarships and fellowships in chapter 8.) Gross income is the total of your earned and

unearned income.

Single dependents—Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

• Your unearned income was more than $1,250.

• Your earned income was more than $13,850.

• Your gross income was more than the larger of:

• $1,250 or

• Your earned income (up to $13,450) plus $400.

Yes. You must file a return if any of the following apply.

• Your unearned income was more than $3,100 ($4,950 if 65 or older and blind).

• Your earned income was more than $15,700 ($17,550 if 65 or older and blind).

• Your gross income was more than the larger of:

• $3,100 ($4,950 if 65 or older and blind), or

• Your earned income (up to $13,450) plus $2,250 ($4,100 if 65 or older and

blind).

Married dependents—Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

• Your unearned income was more than $1,250.

• Your earned income was more than $13,850.

• Your gross income was at least $5 and your spouse files a separate return and

itemizes deductions.

• Your gross income was more than the larger of:

• $1,250, or

• Your earned income (up to $13,450) plus $400.

Yes. You must file a return if any of the following apply.

• Your unearned income was more than $2,750 ($4,250 if 65 or older and blind).

• Your earned income was more than $15,350 ($16,850 if 65 or older and blind).

• Your gross income was at least $5 and your spouse files a separate return and

itemizes deductions.

• Your gross income was more than the larger of:

• $2,750 ($4,250 if 65 or older and blind), or

• Your earned income (up to $13,450) plus $1,900 ($3,400 if 65 or older and

blind).

Table 1-2.

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Publication 17 (2023) Chapter 1 Filing Information 9

Refunds. You can have a refund check mailed

to you, or you can have your refund deposited

directly to your checking or savings account or

split among two or three accounts. With e-file,

your refund will be issued faster than if you filed

on paper.

You may not get all of your refund if you owe

certain past-due amounts, such as federal tax,

state income tax, state unemployment compen-

sation debts, child support, spousal support, or

certain other federal nontax debts, such as stu-

dent loans. See Offset against debts under Re-

funds, later.

Refund inquiries. Information about your re-

turn will generally be available within 24 hours

after the IRS receives your e-filed return. See

Refund Information, later.

Amount you owe. To avoid late-payment pen-

alties and interest, pay your taxes in full by April

15, 2024 (for most people). See How To Pay,

later, for information on how to pay the amount

you owe.

Using Your Personal Computer

You can file your tax return in a fast,

easy, and convenient way using your

personal computer. A computer with In-

ternet access and tax preparation software are

all you need. Best of all, you can e-file from the

comfort of your home 24 hours a day, 7 days a

week.

IRS-approved tax preparation software is

available online and in retail stores. For informa-

tion, visit IRS.gov/efile.

Through Employers and Financial

Institutions

Some businesses offer free e-file to their em-

ployees, members, or customers. Others offer it

for a fee. Ask your employer or financial institu-

tion if they offer IRS e-file as an employee,

member, or customer benefit.

Free Help With Your Return

The Volunteer Income Tax Assistance (VITA)

program offers free tax help to people who gen-

erally make $64,000 or less, persons with disa-

bilities, and limited-English-speaking taxpayers

who need help preparing their own tax returns.

The Tax Counseling for the Elderly (TCE) pro-

gram offers free tax help for all taxpayers, par-

ticularly those who are 60 years of age and

older. TCE volunteers specialize in answering

questions about pensions and retirement-rela-

ted issues unique to seniors.

You can go to IRS.gov to see your options

for preparing and filing your return, which in-

clude the following.

•

Free File. Go to IRS.gov/FreeFile. See if

you qualify to use brand-name software to

prepare and e-file your federal tax return

for free.

•

VITA. Go to IRS.gov/VITA, download the

free IRS2Go app, or call 800-906-9887 to

find the nearest VITA location for free tax

return preparation.

•

TCE. Go to IRS.gov/TCE, download the

free IRS2Go app, or call 888-227-7669 to

find the nearest TCE location for free tax

return preparation.

Using a Tax Professional

Many tax professionals electronically file tax re-

turns for their clients. You may personally enter

your PIN or complete Form 8879, IRS e-file Sig-

nature Authorization, to authorize the tax profes-

sional to enter your PIN on your return.

Note. Tax professionals may charge a fee

for IRS e-file. Fees can vary depending on the

professional and the specific services rendered.

Table 1-4. Free Ways To e-file

Use Free File for free tax software and free e-file.

• IRS partners offer name-brand products for free.

• Many taxpayers are eligible for Free File software.

• Everyone is eligible for Free File Fillable Forms, an electronic version of IRS paper forms.

• Free File software and Free File Fillable Forms are available only at IRS.gov/FreeFile.

Use VITA/TCE for free tax help from volunteers and free e-file.

• Volunteers prepare your return and e-file it for free.

• Some sites also offer do-it-yourself software.

• You are eligible based either on your income or age.

• Sites are located nationwide. Find one near you by visiting IRS.gov/VITA.

Table 1-3. Other Situations When You Must File a 2023 Return

You must file a return if any of the following apply for 2023.

1. You owe any special taxes, including any of the following (see the instructions for Schedule 2 (Form 1040)).

a. Alternative minimum tax.

b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.

c. Household employment taxes.

d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who

didn't withhold these taxes.

e. Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance

and additional taxes on health savings accounts.

f. Recapture taxes.

2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.

3. You had net earnings from self-employment of at least $400.

4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer

social security and Medicare taxes.

5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage

through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the

advance payments.

6. You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you are

paying in installments under section 965(h) or deferred by making an election under section 965(i).

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10 Chapter 1 Filing Information Publication 17 (2023)

When Do I

Have To File?

April 15, 2024, is the due date for filing your

2023 income tax return if you use the calendar

year. If you live in Maine or Massachusetts, you

have until April 17, 2024, because of the Patri-

ots’ Day and Emancipation Day holidays. For a

quick view of due dates for filing a return with or

without an extension of time to file (discussed

later), see Table 1-5.

If you use a fiscal year (a year ending on the

last day of any month except December, or a

52-53-week year), your income tax return is due

by the 15th day of the 4th month after the close

of your fiscal year.

When the due date for doing any act for tax

purposes—filing a return, paying taxes,

etc.—falls on a Saturday, Sunday, or legal holi-

day, the due date is delayed until the next busi-

ness day.

Filing paper returns on time. Your paper re-

turn is filed on time if it is mailed in an envelope

that is properly addressed, has enough post-

age, and is postmarked by the due date. If you

send your return by registered mail, the date of

the registration is the postmark date. The regis-

tration is evidence that the return was delivered.

If you send a return by certified mail and have

your receipt postmarked by a postal employee,

the date on the receipt is the postmark date.

The postmarked certified mail receipt is evi-

dence that the return was delivered.

Private delivery services. If you choose to

mail your return, you can use certain private de-

livery services designated by the IRS to meet

the “timely mailing treated as timely filing/

paying” rule for tax returns and payments.

These private delivery services include only the

following.

•

UPS Next Day Air Early A.M., UPS Next

Day Air, UPS Next Day Air Saver, UPS 2nd

Day Air, UPS 2nd Day Air A.M., UPS

Worldwide Express Plus, and UPS World-

wide Express.

•

FedEx First Overnight, FedEx Priority

Overnight, FedEx Standard Overnight, Fe-

dEx 2 Day, FedEx International Next Flight

Out, FedEx International Priority, FedEx In-

ternational First, and FedEx International

Economy.

•

DHL Express 9:00, DHL Express 10:30,

DHL Express 12:00, DHL Express World-

wide, DHL Express Envelope, DHL Import

Express 10:30, DHL Import Express 12:00,

and DHL Import Express Worldwide.

To check for any updates to the list of desig-

nated private delivery services, go to IRS.gov/

PDS. For the IRS mailing addresses to use if

you’re using a private delivery service, go to

IRS.gov/PDSStreetAddresses.

The private delivery service can tell you how

to get written proof of the mailing date.

Filing electronic returns on time. If you use

IRS e-file, your return is considered filed on time

if the authorized electronic return transmitter

postmarks the transmission by the due date. An

authorized electronic return transmitter is a par-

ticipant in the IRS e-file program that transmits

electronic tax return information directly to the

IRS.

The electronic postmark is a record of when

the authorized electronic return transmitter re-

ceived the transmission of your electronically

filed return on its host system. The date and

time in your time zone controls whether your

electronically filed return is timely.

Filing late. If you don't file your return by the

due date, you may have to pay a failure-to-file

penalty and interest. For more information, see

Penalties, later. Also see Interest under Amount

You Owe, later.

If you were due a refund but you didn't file a

return, you must generally file within 3 years

from the date the return was due (including ex-

tensions) to get that refund.

Nonresident alien. If you are a nonresident

alien and earn wages subject to U.S. income

tax withholding, your 2023 U.S. income tax re-

turn (Form 1040-NR) is due by:

•

April 15, 2024, if you use a calendar year;

•

The 15th day of the 4th month after the end

of your fiscal year, if you use a fiscal year.

If you don't earn wages subject to U.S. in-

come tax withholding, your return is due by:

•

June 17, 2024, if you use a calendar year;

•

The 15th day of the 6th month after the end

of your fiscal year, if you use a fiscal year.

See Pub. 519 for more filing information.

Filing for a decedent. If you must file a final

income tax return for a taxpayer who died dur-

ing the year (a decedent), the return is due by

the 15th day of the 4th month after the end of

the decedent's normal tax year. See Pub. 559.

Extensions of Time To File

You may be able to get an extension of time to

file your return. There are three types of situa-

tions where you may qualify for an extension.

•

Automatic extensions.

•

You are outside the United States.

•

You are serving in a combat zone.

Automatic Extension

If you can’t file your 2023 return by the due date,

you may be able to get an automatic 6-month

extension of time to file.

Example. If your return is due on April 15,

2024, you will have until October 15, 2024, to

file.

If you don't pay the tax due by the regu-

lar due date (April 15 for most taxpay-

ers), you will owe interest. You may

also be charged penalties, discussed later.

How to get the automatic extension. You

can get the automatic extension by:

1. Using IRS e-file (electronic filing), or

2. Filing a paper form.

E-file options. There are two ways you can

use e-file to get an extension of time to file.

Complete Form 4868 to use as a worksheet. If

you think you may owe tax when you file your

return, use Part II of the form to estimate your

balance due. If you e-file Form 4868 to the IRS,

don't send a paper Form 4868.

E-file using your personal computer or a

tax professional. You can use a tax software

package with your personal computer or a tax

professional to file Form 4868 electronically.

Free File and Free File Fillable Forms, both

available at IRS.gov, allow you to prepare and

e-file Form 4868 for free. You will need to pro-

vide certain information from your 2022 tax re-

turn. If you wish to make a payment by direct

transfer from your bank account, see Pay online

under How To Pay, later, in this chapter.

E-file and pay by credit or debit card or

by direct transfer from your bank account.

You can get an extension by paying part or all of

your estimate of tax due by using a credit or

debit card or by direct transfer from your bank

account. You can do this by phone or over the

Internet. You don't file Form 4868. See Pay on-

line under How To Pay, later, in this chapter.

Filing a paper Form 4868. You can get an ex-

tension of time to file by filing a paper Form

4868. If you are a fiscal year taxpayer, you must

file a paper Form 4868. Mail it to the address

shown in the form instructions.

If you want to make a payment with the form,

make your check or money order payable to

“United States Treasury.” Write your SSN, day-

time phone number, and “2023 Form 4868” on

your check or money order.

When to file. You must request the automatic

extension by the due date for your return. You

can file your return any time before the 6-month

extension period ends.

When you file your return. Enter any pay-

ment you made related to the extension of time

to file on Schedule 3 (Form 1040), line 10.

Individuals Outside the

United States

You are allowed an automatic 2-month exten-

sion, without filing Form 4868 (until June 17,

CAUTION

When To File Your 2023 Return

For U.S. citizens and residents who file returns on a calendar year

basis.

For Most Taxpayers

For Certain Taxpayers

Outside

the United States

No extension requested April 15, 2024 June 17, 2024

Automatic extension October 15, 2024 October 15, 2024

Table 1-5.

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Publication 17 (2023) Chapter 1 Filing Information 11

2024, if you use the calendar year), to file your

2023 return and pay any federal income tax due

if:

1. You are a U.S. citizen or resident; and

2. On the due date of your return:

a. You are living outside the United

States and Puerto Rico, and your

main place of business or post of duty

is outside the United States and Pu-

erto Rico; or

b. You are in military or naval service on

duty outside the United States and

Puerto Rico.

However, if you pay the tax due after the reg-

ular due date (April 15 for most taxpayers), in-

terest will be charged from that date until the

date the tax is paid.

If you served in a combat zone or qualified

hazardous duty area, you may be eligible for a

longer extension of time to file. See Individuals

Serving in Combat Zone, later, for special rules

that apply to you.

Married taxpayers. If you file a joint return,

only one spouse has to qualify for this automatic

extension. If you and your spouse file separate

returns, the automatic extension applies only to

the spouse who qualifies.

How to get the extension. To use this auto-

matic extension, you must attach a statement to

your return explaining what situation qualified

you for the extension. (See the situations listed

under (2), earlier.)

Extensions beyond 2 months. If you can’t file

your return within the automatic 2-month exten-

sion period, you may be able to get an addi-

tional 4-month extension, for a total of 6

months. File Form 4868 and check the box on

line 8.

No further extension. An extension of more

than 6 months will generally not be granted.

However, if you are outside the United States

and meet certain tests, you may be granted a

longer extension. For more information, see

When To File and Pay in Pub. 54.

Individuals Serving in

Combat Zone

The deadline for filing your tax return, paying

any tax you may owe, and filing a claim for re-

fund is automatically extended if you serve in a

combat zone. This applies to members of the

Armed Forces, as well as merchant marines

serving aboard vessels under the operational

control of the Department of Defense, Red

Cross personnel, accredited correspondents,

and civilians under the direction of the Armed

Forces in support of the Armed Forces.

Combat zone. A combat zone is any area the

President of the United States designates by

executive order as an area in which the U.S.

Armed Forces are engaging or have engaged in

combat. An area usually becomes a combat

zone and ceases to be a combat zone on the

dates the President designates by executive or-

der. For purposes of the automatic extension,

the term “combat zone” includes the following

areas.

1. The Arabian peninsula area, effective Jan-

uary 17, 1991.

2. The Kosovo area, effective March 24,

1999.

3. The Afghanistan area, effective Septem-

ber 19, 2001.

See Pub. 3 for more detailed information on

the locations comprising each combat zone.

Pub. 3 also has information about other tax ben-

efits available to military personnel serving in a

combat zone.

Extension period. The deadline for filing your

return, paying any tax due, filing a claim for re-

fund, and taking other actions with the IRS is

extended in two steps. First, your deadline is

extended for 180 days after the later of:

1. The last day you are in a combat zone or

the last day the area qualifies as a combat

zone, or

2. The last day of any continuous qualified

hospitalization (defined later) for injury

from service in the combat zone.

Second, in addition to the 180 days, your

deadline is also extended by the number of

days you had left to take action with the IRS

when you entered the combat zone. For exam-

ple, you have 3

/2 months (January 1–April 15)

to file your tax return. Any days left in this period

when you entered the combat zone (or the en-

tire 3

/2 months if you entered it before the be-

ginning of the year) are added to the 180 days.

See Extension of Deadlines in Pub. 3 for more

information.

The rules on the extension for filing your re-

turn also apply when you are deployed outside

the United States (away from your permanent

duty station) while participating in a designated

contingency operation.

Qualified hospitalization. The hospitalization

must be the result of an injury received while

serving in a combat zone or a contingency op-

eration. Qualified hospitalization means:

•

Any hospitalization outside the United

States, and

•

Up to 5 years of hospitalization in the Uni-

ted States.

See Pub. 3 for more information on qualified

hospitalizations.

How Do I Prepare

My Return?

This section explains how to get ready to fill in

your tax return and when to report your income

and expenses. It also explains how to complete

certain sections of the form. You may find Ta-

ble 1-6 helpful when you prepare your paper re-

turn.

Six Steps for Preparing

Your Paper Return

1 — Get your records together for income

and expenses.

2 — Get the forms, schedules, and

publications you need.

3 — Fill in your return.

4 — Check your return to make sure it is

correct.

5 — Sign and date your return.

6 — Attach all required forms and

schedules.

Electronic returns. For information you may

find useful in preparing an electronic return, see

Why Should I File Electronically, earlier.

Substitute tax forms. You can’t use your own

version of a tax form unless it meets the require-

ments explained in Pub. 1167.

Form W-2. If you were an employee, you

should receive Form W-2 from your employer.

You will need the information from this form to

prepare your return. See Form W-2 under Credit

for Withholding and Estimated Tax for 2023 in

chapter 4.

Your employer is required to provide or send

Form W-2 to you no later than January 31,

2024. If it is mailed, you should allow adequate

time to receive it before contacting your em-

ployer. If you still don't get the form by early

February, the IRS can help you by requesting

the form from your employer. When you request

IRS help, be prepared to provide the following

information.

•

Your name, address (including ZIP code),

and phone number.

•

Your SSN.

•

Your dates of employment.

•

Your employer's name, address (including

ZIP code), and phone number.

Form 1099. If you received certain types of in-

come, you may receive a Form 1099. For exam-

ple, if you received taxable interest of $10 or

more, the payer is required to provide or send

Form 1099 to you no later than January 31,

2024 (or by February 15, 2024, if furnished by a

broker). If it is mailed, you should allow ade-

quate time to receive it before contacting the

payer. If you still don't get the form by February

15 (or by March 1, 2024, if furnished by a

broker), call the IRS for help.

When Do I Report My

Income and Expenses?

You must figure your taxable income on the ba-

sis of a tax year. A “tax year” is an annual ac-

counting period used for keeping records and

reporting income and expenses. You must ac-

count for your income and expenses in a way

that clearly shows your taxable income. The

way you do this is called an accounting method.

This section explains which accounting periods

and methods you can use.

Table 1-6.

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12 Chapter 1 Filing Information Publication 17 (2023)

Accounting Periods

Most individual tax returns cover a calendar

year—the 12 months from January 1 through

December 31. If you don't use a calendar year,

your accounting period is a fiscal year. A regular

fiscal year is a 12-month period that ends on the

last day of any month except December. A

52-53-week fiscal year varies from 52 to 53

weeks and always ends on the same day of the

week.

You choose your accounting period (tax

year) when you file your first income tax return.

It can’t be longer than 12 months.

More information. For more information on

accounting periods, including how to change

your accounting period, see Pub. 538.

Accounting Methods

Your accounting method is the way you account

for your income and expenses. Most taxpayers

use either the cash method or an accrual

method. You choose a method when you file

your first income tax return. If you want to

change your accounting method after that, you

must generally get IRS approval. Use Form

3115 to request an accounting method change.

Cash method. If you use this method, report

all items of income in the year in which you ac-

tually or constructively receive them. Generally,

you deduct all expenses in the year you actually

pay them. This is the method most individual

taxpayers use.

Constructive receipt. Generally, you con-

structively receive income when it is credited to

your account or set apart in any way that makes

it available to you. You don't need to have physi-

cal possession of it. For example, interest credi-

ted to your bank account on December 31,

2023, is taxable income to you in 2023 if you

could have withdrawn it in 2023 (even if the

amount isn't entered in your records or with-

drawn until 2024).

Garnished wages. If your employer uses

your wages to pay your debts, or if your wages

are attached or garnished, the full amount is

constructively received by you. You must in-

clude these wages in income for the year you

would have received them.

Debts paid for you. If another person can-

cels or pays your debts (but not as a gift or

loan), you have constructively received the

amount and must generally include it in your

gross income for the year. See Canceled Debts

in chapter 8 for more information.

Payment to third party. If a third party is

paid income from property you own, you have

constructively received the income. It is the

same as if you had actually received the income

and paid it to the third party.

Payment to an agent. Income an agent re-

ceives for you is income you constructively re-

ceived in the year the agent receives it. If you in-

dicate in a contract that your income is to be

paid to another person, you must include the

amount in your gross income when the other

person receives it.

Check received or available. A valid check

that was made available to you before the end

of the tax year is constructively received by you

in that year. A check that was “made available

to you” includes a check you have already re-

ceived, but not cashed or deposited. It also in-

cludes, for example, your last paycheck of the

year that your employer made available for you

to pick up at the office before the end of the

year. It is constructively received by you in that

year whether or not you pick it up before the end

of the year or wait to receive it by mail after the

end of the year.

No constructive receipt. There may be

facts to show that you didn't constructively re-

ceive income.

Example. Lennon, a teacher, agreed to the

school board's condition that, in Lennon’s ab-

sence, Lennon would receive only the differ-

ence between Lennon’s regular salary and the

salary of a substitute teacher hired by the

school board. Therefore, Lennon didn't con-

structively receive the amount by which Len-

non’s salary was reduced to pay the substitute

teacher.

Accrual method. If you use an accrual

method, you generally report income when you

earn it, rather than when you receive it. You

generally deduct your expenses when you incur

them, rather than when you pay them.

Income paid in advance. An advance pay-

ment of income is generally included in gross

income in the year you receive it. Your method

of accounting doesn't matter as long as the in-

come is available to you. An advance payment

may include rent or interest you receive in ad-

vance and pay for services you will perform

later.

A limited deferral until the next tax year may

be allowed for certain advance payments. See

Pub. 538 for specific information.

Additional information. For more information

on accounting methods, including how to

change your accounting method, see Pub. 538.

Social Security Number

(SSN)

You must enter your SSN on your return. If you

are married, enter the SSNs for both you and

your spouse, whether you file jointly or sepa-

rately.

If you are filing a joint return, include the

SSNs in the same order as the names. Use this

same order in submitting other forms and docu-

ments to the IRS.

If you, or your spouse if filing jointly,

don't have an SSN (or ITIN) issued on

or before the due date of your 2023 re-

turn (including extensions), you can't claim cer-

tain tax benefits on your original or an amended

2023 return.

Once you are issued an SSN, use it to file

your tax return. Use your SSN to file your tax re-

turn even if your SSN does not authorize em-

ployment or if you have been issued an SSN

that authorizes employment and you lose your

employment authorization. An ITIN will not be

issued to you once you have been issued an

SSN. If you received your SSN after previously

CAUTION

using an ITIN, stop using your ITIN. Use your

SSN instead.

Check that both the name and SSN on your

Form 1040 or 1040-SR, W-2, and 1099 agree

with your social security card. If they don't, cer-

tain deductions and credits on your Form 1040

or 1040-SR may be reduced or disallowed and

you may not receive credit for your social secur-

ity earnings. If your Form W-2 shows an incor-

rect SSN or name, notify your employer or the

form-issuing agent as soon as possible to make

sure your earnings are credited to your social

security record. If the name or SSN on your so-

cial security card is incorrect, call the Social Se-

curity Administration (SSA) at 800-772-1213.

Name change. If you changed your name be-

cause of marriage, divorce, etc., be sure to re-

port the change to your local SSA office before

filing your return. This prevents delays in pro-

cessing your return and issuing refunds. It also

safeguards your future social security benefits.

Dependent's SSN. You must provide the SSN

of each dependent you claim, regardless of the

dependent's age. This requirement applies to all

dependents (not just your children) claimed on

your tax return.

Your child must have an SSN valid for

employment issued before the due

date of your 2023 return (including ex-

tensions) to be considered a qualifying child for

certain tax benefits on your original or amended

2023 return. See chapter 14.

Exception. If your child was born and died

in 2023 and didn't have an SSN, enter “DIED” in

column (2) of the Dependents section of Form

1040 or 1040-SR and include a copy of the

child's birth certificate, death certificate, or hos-

pital records. The document must show that the

child was born alive.

No SSN. File Form SS-5, Application for a So-

cial Security Card, with your local SSA office to

get an SSN for yourself or your dependent. It

usually takes about 2 weeks to get an SSN. If

you or your dependent isn't eligible for an SSN,

see Individual taxpayer identification number

(ITIN), later.

If you are a U.S. citizen or resident alien, you

must show proof of age, identity, and citizenship

or alien status with your Form SS-5. If you are

12 or older and have never been assigned an

SSN, you must appear in person with this proof

at an SSA office.

Form SS-5 is available at any SSA office, on

the Internet at SSA.gov/forms/ss-5.pdf, or by

calling 800-772-1213. If you have any questions

about which documents you can use as proof of

age, identity, or citizenship, contact your SSA

office.

If your dependent doesn't have an SSN by

the time your return is due, you may want to ask

for an extension of time to file, as explained ear-

lier under When Do I Have To File.

If you don't provide a required SSN or if you

provide an incorrect SSN, your tax may be in-

creased and any refund may be reduced.

Adoption taxpayer identification number

(ATIN). If you are in the process of adopting a

child who is a U.S. citizen or resident and can’t

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Publication 17 (2023) Chapter 1 Filing Information 13

get an SSN for the child until the adoption is fi-

nal, you can apply for an ATIN to use instead of

an SSN.

File Form W-7A, Application for Taxpayer

Identification Number for Pending U.S. Adop-

tions, with the IRS to get an ATIN if all of the fol-

lowing are true.

•

You have a child living with you who was

placed in your home for legal adoption.

•

You can’t get the child's existing SSN even

though you have made a reasonable at-

tempt to get it from the birth parents, the

placement agency, and other persons.

•

You can’t get an SSN for the child from the

SSA because, for example, the adoption

isn't final.

•

You are eligible to claim the child as a de-

pendent on your tax return.

After the adoption is final, you must apply for an

SSN for the child. You can’t continue using the

ATIN.

See Form W-7A for more information.

Nonresident alien spouse. If your spouse is a

nonresident alien, your spouse must have either

an SSN or an ITIN if:

•

You file a joint return, or

•

Your spouse is filing a separate return.

If your spouse isn't eligible for an SSN, see the

following discussion on ITINs.

Individual taxpayer identification number

(ITIN). The IRS will issue you an ITIN if you are

a nonresident or resident alien and you don't

have and aren’t eligible to get an SSN. This also

applies to an alien spouse or dependent. To ap-

ply for an ITIN, file Form W-7 with the IRS. It

usually takes about 7 weeks to get an ITIN. En-

ter the ITIN on your tax return wherever an SSN

is requested.

Make sure your ITIN hasn’t expired. See In-

dividual taxpayer identification number (ITIN)

renewal, earlier, for more information on expira-

tion and renewal of ITINs. You can also find

more information at IRS.gov/ITIN.

If you are applying for an ITIN for your-

self, your spouse, or a dependent in or-

der to file your tax return, attach your

completed tax return to your Form W-7. See the

Form W-7 instructions for how and where to file.

You can’t e-file a return using an ITIN in

the calendar year the ITIN is issued;

however, you can e-file returns in the

following years.

ITIN for tax use only. An ITIN is for federal

tax use only. It doesn't entitle you to social se-

curity benefits or change your employment or

immigration status under U.S. law.

Penalty for not providing social security

number. If you don't include your SSN or the

SSN of your spouse or dependent as required,

you may have to pay a penalty. See the discus-

sion on Penalties, later, for more information.

SSN on correspondence. If you write to the

IRS about your tax account, be sure to include

your SSN (and the name and SSN of your

spouse, if you filed a joint return) in your corre-

spondence. Because your SSN is used to iden-

TIP

CAUTION

tify your account, this helps the IRS respond to

your correspondence promptly.

Presidential Election

Campaign Fund

This fund helps pay for Presidential election

campaigns. The fund also helps pay for pedia-

tric medical research. If you want $3 to go to

this fund, check the box. If you are filing a joint

return, your spouse can also have $3 go to the

fund. If you check the box, your tax or refund

won't change.

Computations

The following information may be useful in mak-

ing the return easier to complete.

Rounding off dollars. You can round off cents

to whole dollars on your return and schedules. If

you do round to whole dollars, you must round

all amounts. To round, drop amounts under 50

cents and increase amounts from 50 to 99

cents to the next dollar. For example, $1.39 be-

comes $1 and $2.50 becomes $3.

If you have to add two or more amounts to

figure the amount to enter on a line, include

cents when adding the amounts and round off

only the total.

If you are entering amounts that include

cents, make sure to include the decimal point.

There is no cents column on Form 1040 or

1040-SR.

Equal amounts. If you are asked to enter the

smaller or larger of two equal amounts, enter

that amount.

Negative amounts. If you file a paper return

and you need to enter a negative amount, put

the amount in parentheses rather than using a

minus sign. To combine positive and negative

amounts, add all the positive amounts together

and then subtract the negative amounts.

Attachments

Depending on the form you file and the items re-

ported on your return, you may have to com-

plete additional schedules and forms and attach

them to your paper return.

You may be able to file a paperless re-

turn using IRS e-file. There's nothing to

attach or mail, not even your Forms

W-2. See Why Should I File Electronically, ear-

lier.

Form W-2. Form W-2 is a statement from your

employer of wages and other compensation

paid to you and taxes withheld from your pay.

You should have a Form W-2 from each em-

ployer. If you file a paper return, be sure to at-

tach a copy of Form W-2 in the place indicated

on your return. For more information, see Form

W-2 in chapter 4.

Form 1099-R. If you received a Form 1099-R

showing federal income tax withheld, and you

file a paper return, attach a copy of that form in

the place indicated on your return.

TIP

Form 1040 or 1040-SR. If you file a paper re-

turn, attach any forms and schedules behind

Form 1040 or 1040-SR in order of the “Attach-

ment Sequence No.” shown in the upper right

corner of the form or schedule. Then, arrange

all other statements or attachments in the same

order as the forms and schedules they relate to

and attach them last. Don't attach items unless

required to do so.

Third Party Designee

If you want to allow your preparer, a friend, a

family member, or any other person you choose

to discuss your 2023 tax return with the IRS,

check the “Yes” box in the “Third Party Desig-

nee” area of your return. Also, enter the design-

ee's name, phone number, and any five digits

the designee chooses as their personal identifi-

cation number (PIN).

If you check the “Yes” box, you, and your

spouse if filing a joint return, are authorizing the

IRS to call the designee to answer any ques-

tions that arise during the processing of your re-

turn. You are also authorizing the designee to:

•

Give information that is missing from your

return to the IRS;

•

Call the IRS for information about the pro-

cessing of your return or the status of your

refund or payments;

•

Receive copies of notices or transcripts re-

lated to your return, upon request; and

•

Respond to certain IRS notices about math

errors, offsets (see Refunds, later), and re-

turn preparation.

You aren't authorizing the designee to re-

ceive any refund check, bind you to anything

(including any additional tax liability), or other-

wise represent you before the IRS. If you want

to expand the designee's authorization, see

Pub. 947.

The authorization will automatically end no

later than the due date (without any extensions)

for filing your 2024 tax return. This is April 15,

2025, for most people.

See your form instructions for more informa-

tion.

Signatures

You must sign and date your return. If you file a

joint return, both you and your spouse must sign

the return, even if only one of you had income.

If you file a joint return, both spouses

are generally liable for the tax, and the

entire tax liability may be assessed

against either spouse. See chapter 2.

Your return isn't considered a valid return un-

less you sign it in accordance with the require-

ments in the instructions for your return.

You must handwrite your signature on your

return if you file it on paper. Digital, electronic, or

typed-font signatures are not valid signatures

for Forms 1040 or 1040-SR filed on paper.

If you electronically file your return, you can

use an electronic signature to sign your return in

accordance with the requirements contained in

the instructions for your return.

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14 Chapter 1 Filing Information Publication 17 (2023)

Failure to sign your return in accordance

with these requirements may prevent you from

obtaining a refund.

Enter your occupation. If you file a joint re-

turn, enter both your occupation and your spou-

se's occupation.

When someone can sign for you. You can

appoint an agent to sign your return if you are:

1. Unable to sign the return because of dis-

ease or injury,

2. Absent from the United States for a contin-

uous period of at least 60 days before the

due date for filing your return, or

3. Given permission to do so by the IRS of-

fice in your area.

Power of attorney. A return signed by an

agent in any of these cases must have a power

of attorney (POA) attached that authorizes the

agent to sign for you. You can use a POA that

states that the agent is granted authority to sign

the return, or you can use Form 2848. Part I of

Form 2848 must state that the agent is granted

authority to sign the return.

Court-appointed conservator, guardian, or

other fiduciary. If you are a court-appointed

conservator, guardian, or other fiduciary for a

mentally or physically incompetent individual

who has to file a tax return, sign your name for

the individual. File Form 56.

Unable to sign. If the taxpayer is mentally

competent but physically unable to sign the re-

turn or POA, a valid “signature” is defined under

state law. It can be anything that clearly indi-

cates the taxpayer's intent to sign. For example,

the taxpayer's “X” with the signatures of two wit-

nesses might be considered a valid signature

under a state's law.

Spouse unable to sign. If your spouse is un-

able to sign for any reason, see Signing a joint

return in chapter 2.

Child's return. If a child has to file a tax return

but can’t sign the return, the child's parent,

guardian, or another legally responsible person

must sign the child's name, followed by the

words “By (your signature), parent for minor

child.”

Paid Preparer

Generally, anyone you pay to prepare, assist in

preparing, or review your tax return must sign it

and fill in the other blanks, including their Pre-

parer Tax Identification Number (PTIN), in the

paid preparer's area of your return.

Many preparers are required to e-file the tax

returns they prepare. They sign these e-filed re-

turns using their tax preparation software. How-

ever, you can choose to have your return com-

pleted on paper if you prefer. In that case, the

paid preparer can sign the paper return man-

ually or use a rubber stamp or mechanical de-

vice. The preparer is personally responsible for

affixing their signature to the return.

If the preparer is self-employed (that is, not

employed by any person or business to prepare

the return), the preparer should check the

self-employed box in the “Paid Preparer Use

Only” space on the return.

The preparer must give you a copy of your

return in addition to the copy filed with the IRS.

If you prepare your own return, leave this

area blank. If another person prepares your re-

turn and doesn't charge you, that person

shouldn't sign your return.

If you have questions about whether a pre-

parer must sign your return, contact any IRS of-

fice.

Refunds

When you complete your return, you will deter-

mine if you paid more income tax than you

owed. If so, you can get a refund of the amount

you overpaid or you can choose to apply all or

part of the overpayment to your next year's

(2024) estimated tax.

If you choose to have a 2023 overpay-

ment applied to your 2024 estimated

tax, you can’t change your mind and

have any of it refunded to you after the due date

(without extensions) of your 2023 return.

Follow the Instructions for Form 1040 to

complete the entries to claim your refund and/or

to apply your overpayment to your 2024 estima-

ted tax.

If your refund for 2023 is large, you may

want to decrease the amount of in-

come tax withheld from your pay in

2024. See chapter 4 for more information.

Instead of getting a pa-

per check, you may be

able to have your refund deposited directly into

your checking, savings, health savings, broker-

age, or other similar account, including an indi-

vidual retirement arrangement (IRA). Follow the

Instructions for Form 1040 to request direct de-

posit. If the direct deposit can’t be done, the IRS

will send a check instead.

Don't request a deposit of any part of your

refund to an account that isn't in your name.

Don't allow your tax preparer to deposit any part

of your refund into the preparer’s account. The

number of direct deposits to a single account or

prepaid debit card is limited to three refunds a

year. After this limit is exceeded, paper checks

will be sent instead. Learn more at IRS.gov/

DepositLimit.

IRA. You can have your refund (or part of it) di-

rectly deposited to a traditional IRA, Roth IRA,

or SEP-IRA, but not a SIMPLE IRA. You must

establish the IRA at a bank or financial institu-

tion before you request direct deposit.

TreasuryDirect®. You can request a deposit

of your refund to a TreasuryDirect® online ac-

count to buy U.S. Treasury marketable securi-

ties (if available) and savings bonds. For more

information, go to https://TreasuryDirect.gov.

Split refunds. If you choose direct deposit,

you may be able to split the refund and have it

deposited into more than one account or use it

to buy up to $5,000 in paper or electronic series

I savings bonds. Complete Form 8888 and at-

tach it to your return.

Overpayment less than one dollar. If your

overpayment is less than $1, you won't get a re-

fund unless you ask for it in writing.

CAUTION

TIP

Simple. Safe. Secure.

DIRECT

DEPOSIT

Cashing your refund check. Cash your tax

refund check soon after you receive it. Checks

expire the last business day of the 12th month

of issue.

If your check has expired, you can apply to

the IRS to have it reissued.

Refund more or less than expected. If you

receive a check for a refund you aren’t entitled

to, or for an overpayment that should have been

credited to estimated tax, don't cash the check.

Call the IRS.

If you receive a check for more than the re-

fund you claimed, don't cash the check until you

receive a notice explaining the difference.

If your refund check is for less than you

claimed, it should be accompanied by a notice

explaining the difference. Cashing the check

doesn't stop you from claiming an additional

amount of refund.

If you didn't receive a notice and you have

any questions about the amount of your refund,

you should wait 2 weeks. If you still haven’t re-

ceived a notice, call the IRS.

Offset against debts. If you are due a refund

but haven’t paid certain amounts you owe, all or

part of your refund may be used to pay all or

part of the past-due amount. This includes

past-due federal income tax, other federal debts

(such as student loans), state income tax, child

and spousal support payments, and state un-

employment compensation debt. You will be no-

tified if the refund you claimed has been offset

against your debts.

Joint return and injured spouse. When a

joint return is filed and only one spouse owes a

past-due amount, the other spouse can be con-

sidered an injured spouse. An injured spouse

should file Form 8379, Injured Spouse Alloca-

tion, if both of the following apply and the

spouse wants a refund of their share of the

overpayment shown on the joint return.

1. You aren’t legally obligated to pay the

past-due amount.

2. You made and reported tax payments

(such as federal income tax withheld from

your wages or estimated tax payments), or

claimed a refundable tax credit (see the

credits listed under Who Should File, ear-

lier).

Note. If the injured spouse's residence was

in a community property state at any time during

the tax year, special rules may apply. See the

Instructions for Form 8379.

If you haven’t filed your joint return and you

know that your joint refund will be offset, file

Form 8379 with your return. You should receive

your refund within 14 weeks from the date the

paper return is filed or within 11 weeks from the

date the return is filed electronically.

If you filed your joint return and your joint re-

fund was offset, file Form 8379 by itself. When

filed after offset, it can take up to 8 weeks to re-

ceive your refund. Don't attach the previously

filed tax return, but do include copies of all

Forms W-2 and W-2G for both spouses and any

Forms 1099 that show income tax withheld. The

processing of Form 8379 may be delayed if

these forms aren’t attached, or if the form is in-

complete when filed.

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Publication 17 (2023) Chapter 1 Filing Information 15

A separate Form 8379 must be filed for each

tax year to be considered.

An injured spouse claim is different

from an innocent spouse relief request.

An injured spouse uses Form 8379 to

request the division of the tax overpayment at-

tributed to each spouse. An innocent spouse

uses Form 8857, Request for Innocent Spouse

Relief, to request relief from joint liability for tax,

interest, and penalties on a joint return for items

of the other spouse (or former spouse) that

were incorrectly reported on the joint return. For

information on innocent spouses, see Relief

from joint responsibility under Filing a Joint Re-

turn in chapter 2.

Amount You Owe

When you complete your return, you will deter-

mine if you have paid the full amount of tax that

you owe. If you owe additional tax, you should

pay it with your return.

You don't have to pay if the amount you

owe is under $1.

If the IRS figures your tax for you, you will re-

ceive a bill for any tax that is due. You should

pay this bill within 30 days (or by the due date of

your return, if later). See Tax Figured by IRS in

chapter 13.

If you don't pay your tax when due, you

may have to pay a failure-to-pay pen-

alty. See Penalties, later. For more in-

formation about your balance due, see Pub.

594.

If the amount you owe for 2023 is large,

you may want to increase the amount

of income tax withheld from your pay or

make estimated tax payments for 2024. See

chapter 4 for more information.

How To Pay

You can pay online, by phone, by mobile device,

in cash, or by check or money order. Don't in-

clude any estimated tax payment for 2024 in

this payment. Instead, make the estimated tax

payment separately.

Bad check or payment. The penalty for writ-

ing a bad check to the IRS is $25 or 2% of the

check, whichever is more. This penalty also ap-

plies to other forms of payment if the IRS

doesn't receive the funds.

Pay online. Paying online is convenient and

secure and helps make sure we get your pay-

ments on time.

You can pay online with a direct transfer

from your bank account using IRS Direct Pay or

the Electronic Federal Tax Payment System

(EFTPS), or by debit or credit card.

To pay your taxes online or for more informa-

tion, go to IRS.gov/Payments.

Pay by phone. Paying by phone is another

safe and secure method of paying online. Use

one of the following methods.

•

EFTPS.

•

Debit or credit card.

CAUTION

TIP

CAUTION

TIP

To get more information about EFTPS or to

enroll in EFTPS, visit EFTPS.gov or call

800-555-4477. To contact EFTPS using Tele-

communications Relay Services (TRS) for peo-

ple who are deaf, hard of hearing, or have a

speech disability, dial 711 and then provide the

TRS assistant the 800-555-4477 number or

800-733-4829. Additional information about

EFTPS is also available in Pub. 966.

To pay using a debit or credit card, you can

call one of the following service providers.

There is a convenience fee charged by these

providers that varies by provider, card type, and

payment amount.

WorldPay US, Inc.

844-PAY-TAX-8

(844-729-8298)

www.payUSAtax.com

ACI Payments, Inc.

888-UPAY-TAX

(888-872-9829)

fed.acipayonline.com

Link2Gov Corporation

888-PAY-1040

(888-729-1040)

www.PAY1040.com

For the latest details on how to pay by

phone, go to IRS.gov/Payments.

Pay by cash. Cash is an in-person payment

option for individuals provided through retail

partners with a maximum of $1,000 per day per

transaction. To make a cash payment, choose a

payment processor online at

fed.acipayonline.com or www.PAY1040.com.

Don’t send cash payments through the mail.

Pay by check or money order. Make your

check or money order payable to “United States

Treasury” for the full amount due. Don't send

cash. Don't attach the payment to your return.

Show your correct name, address, SSN, day-

time phone number, and the tax year and form

number on the front of your check or money or-

der. If you are filing a joint return, enter the SSN

shown first on your tax return.

Notice to taxpayers presenting checks.

When you provide a check as payment, you au-

thorize us either to use information from your

check to make a one-time electronic fund trans-

fer from your account or to process the payment

as a check transaction. When we use informa-

tion from your check to make an electronic fund

transfer, funds may be withdrawn from your ac-

count as soon as the same day we receive your

payment, and you will not receive your check

back from your financial institution.

No checks of $100 million or more accep-

ted. The IRS can’t accept a single check (in-

cluding a cashier’s check) for amounts of

$100,000,000 ($100 million) or more. If you are

sending $100 million or more by check, you’ll

need to spread the payment over two or more

checks with each check made out for an

amount less than $100 million. This limit doesn’t

apply to other methods of payment (such as

electronic payments). Please consider a

method of payment other than check if the

amount of the payment is over $100 million.

Estimated tax payments. Don't include any

2024 estimated tax payment in the payment for

your 2023 income tax return. See chapter 4 for

information on how to pay estimated tax.

Interest

Interest is charged on tax you don't pay by the

due date of your return. Interest is charged even

if you get an extension of time for filing.

If the IRS figures your tax for you, to

avoid interest for late payment, you

must pay the bill by the date specified

on the bill or by the due date of your return,

whichever is later. For information, see Tax Fig-

ured by IRS in chapter 13.

Interest on penalties. Interest is charged on

the failure-to-file penalty, the accuracy-related

penalty, and the fraud penalty from the due date

of the return (including extensions) to the date

of payment. Interest on other penalties starts on

the date of notice and demand, but isn't

charged on penalties paid within 21 calendar

days from the date of the notice (or within 10

business days if the notice is for $100,000 or

more).

Interest due to IRS error or delay. All or part

of any interest you were charged can be for-

given if the interest is due to an unreasonable

error or delay by an officer or employee of the

IRS in performing a ministerial or managerial

act.

A ministerial act is a procedural or mechani-

cal act that occurs during the processing of your

case. A managerial act includes personnel

transfers and extended personnel training. A

decision concerning the proper application of

federal tax law isn't a ministerial or managerial

act.

The interest can be forgiven only if you

aren’t responsible in any important way for the

error or delay and the IRS has notified you in

writing of the deficiency or payment. For more

information, see Pub. 556.

Interest and certain penalties may also be

suspended for a limited period if you filed your

return by the due date (including extensions)

and the IRS doesn't provide you with a notice

specifically stating your liability and the basis for

it before the close of the 36-month period begin-

ning on the later of:

•

The date the return is filed, or

•

The due date of the return without regard

to extensions.

For more information, see Pub. 556.

Installment Agreement

If you can’t pay the full amount due with your re-

turn, you can ask to make monthly installment

payments for the full or a partial amount. How-

ever, you will be charged interest and may be

charged a late payment penalty on the tax not

paid by the date your return is due, even if your

request to pay in installments is granted. If your

request is granted, you must also pay a fee. To

limit the interest and penalty charges, pay as

much of the tax as possible with your return. But

before requesting an installment agreement,

you should consider other less costly alterna-

tives, such as a bank loan or credit card pay-

ment.

TIP

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16 Chapter 1 Filing Information Publication 17 (2023)

To apply for an installment agreement on-

line, go to IRS.gov/OPA. You can also use Form

9465.

In addition to paying by check or money or-

der, you can use a credit or debit card or direct

payment from your bank account to make in-

stallment agreement payments. See How To

Pay, earlier.

Gift To Reduce Debt

Held by the Public

You can make a contribution (gift) to re-

duce debt held by the public. If you

wish to do so, make a separate check

payable to “Bureau of the Fiscal Service.”

Send your check to:

Bureau of the Fiscal Service

ATTN: Department G

P.O. Box 2188

Parkersburg, WV 26106-2188

Or enclose your separate check in the envelope

with your income tax return. Don't add this gift to

any tax you owe.

For information on making this type of gift

online, go to TreasururyDirect.gov/Help-Center/

Public-Debt-FAQs/#DebtFinance and see the

information under “How do you make a contri-

bution to reduce the debt?”

You may be able to deduct this gift as a

charitable contribution on next year's tax return

if you itemize your deductions on Schedule A

(Form 1040).

Name and Address

After you have completed your return, fill in your

name and address in the appropriate area of

Form 1040 or 1040-SR.

You must include your SSN in the cor-

rect place on your tax return.

P.O. box. If your post office doesn't deliver mail

to your street address and you have a P.O. box,

enter your P.O. box number on the line for your

present home address instead of your street ad-

dress.

Foreign address. If your address is outside

the United States or its territories, enter the city

name on the appropriate line of your Form 1040

or 1040-SR. Don't enter any other information

on that line, but also complete the spaces below

that line.

1. Foreign country name.

2. Foreign province/state/county.

3. Foreign postal code.

Don’t abbreviate the country name. Follow the

country's practice for entering the postal code

and the name of the province, county, or state.

Where Do I File?

After you complete your return, you must send it

to the IRS. You can mail it or you may be able to

CAUTION

file it electronically. See Why Should I File Elec-

tronically, earlier.

Mailing your paper return. Mail your paper

return to the address shown in the Instructions

for Form 1040.

What Happens After

I File?

After you send your return to the IRS, you may

have some questions. This section discusses

concerns you may have about recordkeeping,

your refund, and what to do if you move.

What Records Should

I Keep?

This part discusses why you should keep re-

cords, what kinds of records you should keep,

and how long you should keep them.

You must keep records so that you can

prepare a complete and accurate in-

come tax return. The law doesn't re-

quire any special form of records. However, you

should keep all receipts, canceled checks or

other proof of payment, and any other records

to support any deductions or credits you claim.

If you file a claim for refund, you must be

able to prove by your records that you have

overpaid your tax.

This part doesn't discuss the records you

should keep when operating a business. For in-

formation on business records, see Pub. 583.

Why Keep Records?

Good records help you:

•

Identify sources of income. Your records

can identify the sources of your income to

help you separate business from nonbusi-

ness income and taxable from nontaxable

income.

•

Keep track of expenses. You can use

your records to identify expenses for which

you can claim a deduction. This helps you

determine if you can itemize deductions on

your tax return.

•

Keep track of the basis of property. You

need to keep records that show the basis

of your property. This includes the original

cost or other basis of the property and any

improvements you made.

•

Prepare tax returns. You need records to

prepare your tax return.

•

Support items reported on tax returns.

The IRS may question an item on your re-

turn. Your records will help you explain any

item and arrive at the correct tax. If you

can’t produce the correct documents, you

may have to pay additional tax and be sub-

ject to penalties.

Kinds of Records To Keep

The IRS doesn't require you to keep your re-

cords in a particular way. Keep them in a man-

ner that allows you and the IRS to determine

your correct tax.

RECORDS

You can use your checkbook to keep a re-

cord of your income and expenses. You also

need to keep documents, such as receipts and

sales slips, that can help prove a deduction.

In this section, you will find guidance about

basic records that everyone should keep. The

section also provides guidance about specific

records you should keep for certain items.

Electronic records. All requirements that ap-

ply to hard copy books and records also apply

to electronic storage systems that maintain tax

books and records. When you replace hard

copy books and records, you must maintain the

electronic storage systems for as long as they

are material to the administration of tax law.

For details on electronic storage system re-

quirements, see Revenue Procedure 97-22,

which is on page 9 of Internal Revenue Bulletin

1997-13 at IRS.gov/pub/irs-irbs/irb97-13.pdf.

Copies of tax returns. You should keep cop-

ies of your tax returns as part of your tax re-

cords. They can help you prepare future tax re-

turns, and you will need them if you file an

amended return or are audited. Copies of your

returns and other records can be helpful to your

survivor or the executor or administrator of your

estate.

If necessary, you can request a copy of a re-

turn and all attachments (including Form W-2)

from the IRS by using Form 4506. There is a

charge for a copy of a return. For information on

the cost and where to file, see the Instructions

for Form 4506.

If you just need information from your return,

you can order a transcript in one of the following

ways.

•

Go to IRS.gov/Transcript.

•

Call 800-908-9946.

•

Use Form 4506-T or Form 4506T-EZ.

There is no fee for a transcript. For more infor-

mation, see Form 4506-T.

Basic Records

Basic records are documents that everybody

should keep. These are the records that prove

your income and expenses. If you own a home

or investments, your basic records should con-

tain documents related to those items.

Income. Your basic records prove the amounts

you report as income on your tax return. Your in-

come may include wages, dividends, interest,

and partnership or S corporation distributions.

Your records can also prove that certain

amounts aren’t taxable, such as tax-exempt in-

terest.

Note. If you receive a Form W-2, keep Copy

C until you begin receiving social security bene-

fits. This will help protect your benefits in case

there is a question about your work record or

earnings in a particular year.

Expenses. Your basic records prove the ex-

penses for which you claim a deduction (or

credit) on your tax return. Your deductions may

include alimony, charitable contributions, mort-

gage interest, and real estate taxes. You may

also have childcare expenses for which you can

claim a credit.

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Publication 17 (2023) Chapter 1 Filing Information 17

Home. Your basic records should enable you

to determine the basis or adjusted basis of your

home. You need this information to determine if

you have a gain or loss when you sell your

home or to figure depreciation if you use part of

your home for business purposes or for rent.

Your records should show the purchase price,

settlement or closing costs, and the cost of any

improvements. They may also show any casu-

alty losses deducted and insurance reimburse-

ments for casualty losses.

For detailed information on basis, including

which settlement or closing costs are included

in the basis of your home, see Pub. 551.

When you sell your home, your records

should show the sales price and any selling ex-

penses, such as commissions. For information

on selling your home, see Pub. 523.

Investments. Your basic records should ena-

ble you to determine your basis in an invest-

ment and whether you have a gain or loss when

you sell it. Investments include stocks, bonds,

and mutual funds. Your records should show the

purchase price, sales price, and commissions.

They may also show any reinvested dividends,

stock splits and dividends, load charges, and

original issue discount (OID).

For information on stocks, bonds, and mu-

tual funds, see Pub. 550 and Pub. 551.

Proof of Payment

One of your basic records is proof of payment.

You should keep these records to support cer-

tain amounts shown on your tax return. Proof of

payment alone isn't proof that the item claimed

on your return is allowable. You should also

keep other documents that will help prove that

the item is allowable.

Generally, you prove payment with a cash

receipt, financial account statement, credit card

statement, canceled check, or substitute check.

If you make payments in cash, you should get a

dated and signed receipt showing the amount

and the reason for the payment.

If you make payments using your bank ac-

count, you may be able to prove payment with

an account statement.

Account statements. You may be able to

prove payment with a legible financial account

statement prepared by your bank or other finan-

cial institution.

Pay statements. You may have deductible ex-

penses withheld from your paycheck, such as

medical insurance premiums. You should keep

your year-end or final pay statements as proof

of payment of these expenses.

How Long To Keep

Records

You must keep your records as long as they

may be needed for the administration of any

provision of the Internal Revenue Code. Gener-

ally, this means you must keep records that sup-

port items shown on your return until the period

of limitations for that return runs out.

The period of limitations is the period of time

in which you can amend your return to claim a

credit or refund or the IRS can assess additional

tax. Table 1-7 contains the periods of limitations

that apply to income tax returns. Unless other-

wise stated, the years refer to the period begin-

ning after the return was filed. Returns filed be-

fore the due date are treated as being filed on

the due date.

Period of LimitationsTable 1-7.

IF you... THEN the

period is...

1 File a return and (2),

(3), and (4) don't apply

to you,

3 years.

2 Don't report income

that you should and it is

more than 25% of the

gross income shown on

your return,

6 years.

3 File a fraudulent return, No limit.

4 Don't file a return, No limit.

5 File a claim for credit or

refund after you filed

your return,

The later of 3

years or 2

years after tax

was paid.

6 File a claim for a loss

from worthless

securities or bad debt

deduction,

7 years.

Property. Keep records relating to property un-

til the period of limitations expires for the year in

which you dispose of the property in a taxable

disposition. You must keep these records to fig-

ure your basis for computing gain or loss when

you sell or otherwise dispose of the property.

Generally, if you received property in a non-

taxable exchange, your basis in that property is

the same as the basis of the property you gave

up. You must keep the records on the old prop-

erty, as well as the new property, until the period

of limitations expires for the year in which you

dispose of the new property in a taxable dispo-

sition.

Refund Information

You can go online to check the status of your

2023 refund 24 hours after the IRS receives

your e-filed return, or 4 weeks after you mail a

paper return. If you filed Form 8379 with your re-

turn, allow 14 weeks (11 weeks if you filed elec-

tronically) before checking your refund status.

Be sure to have a copy of your 2023 tax return

available because you will need to know the fil-

ing status, the first SSN shown on the return,

and the exact whole-dollar amount of the re-

fund. To check on your refund, do one of the fol-

lowing.

•

Go to IRS.gov/Refunds.

•

Download the free IRS2Go app to your

smart phone and use it to check your re-

fund status.

•

Call the automated refund hotline at

800-829-1954.

Interest on Refunds

If you are due a refund, you may get interest on

it. The interest rates are adjusted quarterly.

If the refund is made within 45 days after the

due date of your return, no interest will be paid.

If you file your return after the due date (includ-

ing extensions), no interest will be paid if the re-

fund is made within 45 days after the date you

filed. If the refund isn't made within this 45-day

period, interest will be paid from the due date of

the return or from the date you filed, whichever

is later.

Accepting a refund check doesn't change

your right to claim an additional refund and in-

terest. File your claim within the period of time

that applies. See Amended Returns and Claims

for Refund, later. If you don't accept a refund

check, no more interest will be paid on the over-

payment included in the check.

Interest on erroneous refund. All or part of

any interest you were charged on an erroneous

refund will generally be forgiven. Any interest

charged for the period before demand for repay-

ment was made will be forgiven unless:

1. You, or a person related to you, caused

the erroneous refund in any way; or

2. The refund is more than $50,000.

For example, if you claimed a refund of $100

on your return, but the IRS made an error and

sent you $1,000, you wouldn't be charged inter-

est for the time you held the $900 difference.

You must, however, repay the $900 when the

IRS asks.

Change of Address

If you have moved, file your return using your

new address.

If you move after you filed your return, you

should give the IRS clear and concise notifica-

tion of your change of address. The notification

may be written, electronic, or oral. Send written

notification to the Internal Revenue Service

Center serving your old address. You can use

Form 8822, Change of Address. If you are ex-

pecting a refund, also notify the post office serv-

ing your old address. This will help in forwarding

your check to your new address (unless you

chose direct deposit of your refund). For more

information, see Revenue Procedure 2010-16,

2010-19 I.R.B. 664, available at IRS.gov/irb/

2010-19_IRB/ar07.html.

Be sure to include your SSN (and the name

and SSN of your spouse if you filed a joint re-

turn) in any correspondence with the IRS.

What if I Made

a Mistake?

Errors may delay your refund or result in notices

being sent to you. If you discover an error, you

can file an amended return or claim for refund.

Amended Returns and

Claims for Refund

You should correct your return if, after you have

filed it, you find that:

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18 Chapter 1 Filing Information Publication 17 (2023)

1. You didn't report some income,

2. You claimed deductions or credits you

shouldn't have claimed,

3. You didn't claim deductions or credits you

could have claimed, or

4. You should have claimed a different filing

status. (Once you file a joint return, you

can’t choose to file separate returns for

that year after the due date of the return.

However, an executor may be able to

make this change for a deceased spouse.)

If you need a copy of your return, see Copies of

tax returns under Kinds of Records To Keep,

earlier, in this chapter.

Form 1040-X. Use Form 1040-X to correct a

return you have already filed.

Completing Form 1040-X. On Form

1040-X, enter your income, deductions, and

credits as you originally reported them on your

return; the changes you are making; and the

corrected amounts. Then, figure the tax on the

corrected amount of taxable income and the

amount you owe or your refund.

If you owe tax, the IRS offers several pay-

ment options. See How To Pay, earlier. The tax

owed won't be subtracted from any amount you

had credited to your estimated tax.

If you can’t pay the full amount due with your

return, you can ask to make monthly installment

payments. See Installment Agreement, earlier.

If you overpaid tax, you can have all or part

of the overpayment refunded to you, or you can

apply all or part of it to your estimated tax. If you

choose to get a refund, it will be sent separately

from any refund shown on your original return.

Filing Form 1040-X. When completing

Form 1040-X, don't forget to show the year of

your original return and explain all changes you

made. Be sure to attach any forms or schedules

needed to explain your changes. Mail your

Form 1040-X to the Internal Revenue Service

Center serving the area where you now live (as

shown in the Instructions for Form 1040-X).

However, if you are filing Form 1040-X in re-

sponse to a notice you received from the IRS,

mail it to the address shown on the notice.

File a separate form for each tax year in-

volved.

You can file Form 1040-X electronically to

amend 2019 or later Forms 1040 and 1040-SR.

For more information, see Instructions for Form

1040-X.

Time for filing a claim for refund. Generally,

you must file your claim for a credit or refund

within 3 years after the date you filed your origi-

nal return or within 2 years after the date you

paid the tax, whichever is later. Returns filed be-

fore the due date (without regard to extensions)

are considered filed on the due date (even if the

due date was a Saturday, Sunday, or legal holi-

day). These time periods are suspended while

you are financially disabled, discussed later.

If the last day for claiming a credit or refund

is a Saturday, Sunday, or legal holiday, you can

file the claim on the next business day.

If you don't file a claim within this period, you

may not be entitled to a credit or a refund.

Federally declared disaster. If you were

affected by a federally declared disaster, you

may have additional time to file your amended

return. See Pub. 556 for details.

Protective claim for refund. Generally, a pro-

tective claim is a formal claim or amended re-

turn for credit or refund normally based on cur-

rent litigation or expected changes in tax law or

other legislation. You file a protective claim

when your right to a refund is contingent on fu-

ture events and may not be determinable until

after the statute of limitations expires. A valid

protective claim doesn't have to list a particular

dollar amount or demand an immediate refund.

However, a valid protective claim must:

•

Be in writing and signed;

•

Include your name, address, SSN or ITIN,

and other contact information;

•

Identify and describe the contingencies af-

fecting the claim;

•

Clearly alert the IRS to the essential nature

of the claim; and

•

Identify the specific year(s) for which a re-

fund is sought.

Mail your protective claim for refund to the ad-

dress listed in the Instructions for Form 1040-X

under Where To File.

Generally, the IRS will delay action on the

protective claim until the contingency is re-

solved.

Limit on amount of refund. If you file your

claim within 3 years after the date you filed your

return, the credit or refund can’t be more than

the part of the tax paid within the 3-year period

(plus any extension of time for filing your return)

immediately before you filed the claim. This

time period is suspended while you are finan-

cially disabled, discussed later.

Tax paid. Payments, including estimated tax

payments, made before the due date (without

regard to extensions) of the original return are

considered paid on the due date. For example,

income tax withheld during the year is consid-

ered paid on the due date of the return, which is

April 15 for most taxpayers.

Example 1. You made estimated tax pay-

ments of $500 and got an automatic extension

of time to October 15, 2020, to file your 2019 in-

come tax return. When you filed your return on

that date, you paid an additional $200 tax. On

October 16, 2023, you filed an amended return

and claimed a refund of $700. October 15, 2023

was a Sunday so you had until the next busi-

ness day, October 16, to file your amended re-

turn. Because you filed your claim within 3 years

after you filed your original return, you can get a

refund of up to $700, the tax paid within the 3

years plus the 6-month extension period imme-

diately before you filed the claim.

Example 2. The situation is the same as in

Example 1, except you filed your return on Oc-

tober 30, 2020, 2 weeks after the extension pe-

riod ended. You paid an additional $200 on that

date. On October 30, 2023, you filed an amen-

ded return and claimed a refund of $700. Al-

though you filed your claim within 3 years from

the date you filed your original return, the refund

was limited to $200, the tax paid within the 3

years plus the 6-month extension period imme-

diately before you filed the claim. The estimated

tax of $500 paid before that period can’t be re-

funded or credited.

If you file a claim more than 3 years after you

file your return, the credit or refund can’t be

more than the tax you paid within the 2 years

immediately before you file the claim.

Example. You filed your 2019 tax return on

April 15, 2020. You paid taxes of $500. On No-

vember 5, 2021, after an examination of your

2019 return, you had to pay an additional tax of

$200. On May 12, 2023, you file a claim for a re-

fund of $300. However, because you filed your

claim more than 3 years after you filed your re-

turn, your refund will be limited to the $200 you

paid during the 2 years immediately before you

filed your claim.

Financially disabled. The time periods for

claiming a refund are suspended for the period

in which you are financially disabled. For a joint

income tax return, only one spouse has to be fi-

nancially disabled for the time period to be sus-

pended. You are financially disabled if you are

unable to manage your financial affairs because

of a medically determinable physical or mental

impairment that can be expected to result in

death or that has lasted or can be expected to

last for a continuous period of not less than 12

months. However, you aren’t treated as finan-

cially disabled during any period your spouse or

any other person is authorized to act on your

behalf in financial matters.

To claim that you are financially disabled,

you must send in the following written state-

ments with your claim for refund.

1. A statement from your qualified physician

that includes:

a. The name and a description of your

physical or mental impairment;

b. The physician's medical opinion that

the impairment prevented you from

managing your financial affairs;

c. The physician's medical opinion that

the impairment was or can be expec-

ted to result in death, or that its dura-

tion has lasted, or can be expected to

last, at least 12 months;

d. The specific time period (to the best of

the physician's knowledge); and

e. The following certification signed by

the physician: “I hereby certify that, to

the best of my knowledge and belief,

the above representations are true,

correct, and complete.”

2. A statement made by the person signing

the claim for credit or refund that no per-

son, including your spouse, was author-

ized to act on your behalf in financial mat-

ters during the period of disability (or the

exact dates that a person was authorized

to act for you).

Exceptions for special types of refunds. If

you file a claim for one of the items in the follow-

ing list, the dates and limits discussed earlier

may not apply. These items, and where to get

more information, are as follows.

•

Bad debt. See Pub. 550.

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Publication 17 (2023) Chapter 1 Filing Information 19

•

Worthless security. See Pub. 550.

•

Foreign tax paid or accrued. See Pub. 514.

•

Net operating loss carryback. See Pub.

536.

•

Carryback of certain business tax credits.

See Form 3800.

•

Claim based on an agreement with the IRS

extending the period for assessment of tax.

Processing claims for refund. Claims are

usually processed 8–12 weeks after they are

filed. Your claim may be accepted as filed, disal-

lowed, or subject to examination. If a claim is

examined, the procedures are the same as in

the examination of a tax return.

If your claim is disallowed, you will receive

an explanation of why it was disallowed.

Taking your claim to court. You can sue for a

refund in court, but you must first file a timely

claim with the IRS. If the IRS disallows your

claim or doesn't act on your claim within 6

months after you file it, you can then take your

claim to court. For information on the burden of

proof in a court proceeding, see Pub. 556.

The IRS provides a direct method to move

your claim to court if:

•

You are filing a claim for a credit or refund

based solely on contested income tax or

on estate tax or gift tax issues considered

in your previously examined returns, and

•

You want to take your case to court instead

of appealing it within the IRS.

When you file your claim with the IRS, you

get the direct method by requesting in writing

that your claim be immediately rejected. A no-

tice of claim disallowance will be sent to you.

You have 2 years from the date of mailing of

the notice of claim disallowance to file a refund

suit in the U.S. District Court having jurisdiction

or in the U.S. Court of Federal Claims.

Interest on refund. If you receive a refund be-

cause of your amended return, interest will be

paid on it from the due date of your original re-

turn or the date you filed your original return,

whichever is later, to the date you filed the

amended return. However, if the refund isn't

made within 45 days after you file the amended

return, interest will be paid up to the date the re-

fund is paid.

Reduced refund. Your refund may be reduced

by an additional tax liability that has been as-

sessed against you.

Also, your refund may be reduced by

amounts you owe for past-due federal tax, state

income tax, state unemployment compensation

debts, child support, spousal support, or certain

other federal nontax debts, such as student

loans. If your spouse owes these debts, see

Offset against debts under Refunds, earlier, for

the correct refund procedures to follow.

Effect on state tax liability. If your return is

changed for any reason, it may affect your state

income tax liability. This includes changes

made as a result of an examination of your re-

turn by the IRS. Contact your state tax agency

for more information.

Penalties

The law provides penalties for failure to file re-

turns or pay taxes as required.

Civil Penalties

If you don't file your return and pay your tax by

the due date, you may have to pay a penalty.

You may also have to pay a penalty if you sub-

stantially understate your tax, understate a re-

portable transaction, file an erroneous claim for

refund or credit, file a frivolous tax submission,

or fail to supply your SSN or ITIN. If you provide

fraudulent information on your return, you may

have to pay a civil fraud penalty.

Filing late. If you don't file your return by the

due date (including extensions), you may have

to pay a failure-to-file penalty. The penalty is

usually 5% for each month or part of a month

that a return is late, but not more than 25%. The

penalty is based on the tax not paid by the due

date (without regard to extensions).

Fraud. If your failure to file is due to fraud,

the penalty is 15% for each month or part of a

month that your return is late, up to a maximum

of 75%.

Return over 60 days late. If you file your re-

turn more than 60 days after the due date, or

extended due date, the minimum penalty is the

smaller of $485 or 100% of the unpaid tax.

Exception. You won't have to pay the pen-

alty if you show that you failed to file on time be-

cause of reasonable cause and not because of

willful neglect.

Paying tax late. You will have to pay a fail-

ure-to-pay penalty of

/2 of 1% (0.50%) of your

unpaid taxes for each month, or part of a month,

after the due date that the tax isn't paid. This

penalty doesn't apply during the automatic

6-month extension of time to file period if you

paid at least 90% of your actual tax liability on or

before the due date of your return and pay the

balance when you file the return.

The monthly rate of the failure-to-pay pen-

alty is half the usual rate (0.25% instead of

0.50%) if an installment agreement is in effect

for that month. You must have filed your return

by the due date (including extensions) to qualify

for this reduced penalty.

If a notice of intent to levy is issued, the rate

will increase to 1% at the start of the first month

beginning at least 10 days after the day that the

notice is issued. If a notice and demand for im-

mediate payment is issued, the rate will in-

crease to 1% at the start of the first month be-

ginning after the day that the notice and

demand is issued.

This penalty can’t be more than 25% of your

unpaid tax. You won't have to pay the penalty if

you can show that you had a good reason for

not paying your tax on time.

Combined penalties. If both the failure-to-file

penalty and the failure-to-pay penalty (dis-

cussed earlier) apply in any month, the 5% (or

15%) failure-to-file penalty is reduced by the

failure-to-pay penalty. However, if you file your

return more than 60 days after the due date or

extended due date, the minimum penalty is the

smaller of $485 or 100% of the unpaid tax.

Accuracy-related penalty. You may have to

pay an accuracy-related penalty if you underpay

your tax because:

1. You show negligence or disregard of the

rules or regulations,

2. You substantially understate your income

tax,

3. You claim tax benefits for a transaction

that lacks economic substance, or

4. You fail to disclose a foreign financial as-

set.

The penalty is equal to 20% of the underpay-

ment. The penalty is 40% of any portion of the

underpayment that is attributable to an undis-

closed noneconomic substance transaction or

an undisclosed foreign financial asset transac-

tion. The penalty won't be figured on any part of

an underpayment on which the fraud penalty

(discussed later) is charged.

Negligence or disregard. The term “negli-

gence” includes a failure to make a reasonable

attempt to comply with the tax law or to exercise

ordinary and reasonable care in preparing a re-

turn. Negligence also includes failure to keep

adequate books and records. You won't have to

pay a negligence penalty if you have a reasona-

ble basis for a position you took.

The term “disregard” includes any careless,

reckless, or intentional disregard.

Adequate disclosure. You can avoid the

penalty for disregard of rules or regulations if

you adequately disclose on your return a posi-

tion that has at least a reasonable basis. See

Disclosure statement, later.

This exception won't apply to an item that is

attributable to a tax shelter. In addition, it won't

apply if you fail to keep adequate books and re-

cords, or substantiate items properly.

Substantial understatement of income

tax. You understate your tax if the tax shown on

your return is less than the correct tax. The un-

derstatement is substantial if it is more than the

larger of 10% of the correct tax or $5,000. How-

ever, the amount of the understatement may be

reduced to the extent the understatement is due

to:

1. Substantial authority, or

2. Adequate disclosure and a reasonable ba-

sis.

If an item on your return is attributable to a tax

shelter, there is no reduction for an adequate

disclosure. However, there is a reduction for a

position with substantial authority, but only if you

reasonably believed that your tax treatment was

more likely than not the proper treatment.

Substantial authority. Whether there is or

was substantial authority for the tax treatment of

an item depends on the facts and circumstan-

ces. Some of the items that may be considered

are court opinions, Treasury regulations, reve-

nue rulings, revenue procedures, and notices

and announcements issued by the IRS and

published in the Internal Revenue Bulletin that

involve the same or similar circumstances as

yours.

Disclosure statement. To adequately dis-

close the relevant facts about your tax treatment

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20 Chapter 1 Filing Information Publication 17 (2023)

of an item, use Form 8275. You must also have

a reasonable basis for treating the item the way

you did.

In cases of substantial understatement only,

items that meet the requirements of Revenue

Procedure 2022-41 (or later update) are consid-

ered adequately disclosed on your return with-

out filing Form 8275.

Use Form 8275-R to disclose items or posi-

tions contrary to regulations.

Transaction lacking economic substance.

For more information on economic substance,

see section 7701(o).

Foreign financial asset. For more informa-

tion on undisclosed foreign financial assets, see

section 6662(j).

Reasonable cause. You won't have to pay a

penalty if you show a good reason (reasonable

cause) for the way you treated an item. You

must also show that you acted in good faith.

This doesn't apply to a transaction that lacks

economic substance.

Filing erroneous claim for refund or credit.

You may have to pay a penalty if you file an erro-

neous claim for refund or credit. The penalty is

equal to 20% of the disallowed amount of the

claim, unless you can show a reasonable basis

for the way you treated an item. However, any

disallowed amount due to a transaction that

lacks economic substance won't be treated as

having a reasonable basis. The penalty won't

be figured on any part of the disallowed amount

of the claim that relates to the earned income

credit or on which the accuracy-related or fraud

penalties are charged.

Frivolous tax submission. You may have to

pay a penalty of $5,000 if you file a frivolous tax

return or other frivolous submissions. A frivolous

tax return is one that doesn't include enough in-

formation to figure the correct tax or that con-

tains information clearly showing that the tax

you reported is substantially incorrect. For more

information on frivolous returns, frivolous sub-

missions, and a list of positions that are identi-

fied as frivolous, see Notice 2010-33, 2010-17

I.R.B. 609, available at IRS.gov/irb/

2010-17_IRB/ar13.html.

You will have to pay the penalty if you filed

this kind of return or submission based on a friv-

olous position or a desire to delay or interfere

with the administration of federal tax laws. This

includes altering or striking out the preprinted

language above the space provided for your

signature.

This penalty is added to any other penalty

provided by law.

Fraud. If there is any underpayment of tax on

your return due to fraud, a penalty of 75% of the

underpayment due to fraud will be added to

your tax.

Joint return. The fraud penalty on a joint re-

turn doesn't apply to a spouse unless some part

of the underpayment is due to the fraud of that

spouse.

Failure to supply SSN. If you don't include

your SSN or the SSN of another person where

required on a return, statement, or other docu-

ment, you will be subject to a penalty of $50 for

each failure. You will also be subject to a pen-

alty of $50 if you don't give your SSN to another

person when it is required on a return, state-

ment, or other document.

For example, if you have a bank account that

earns interest, you must give your SSN to the

bank. The number must be shown on the Form

1099-INT or other statement the bank sends

you. If you don't give the bank your SSN, you

will be subject to the $50 penalty. (You may also

be subject to “backup” withholding of income

tax. See chapter 4.)

You won't have to pay the penalty if you are

able to show that the failure was due to reason-

able cause and not willful neglect.

Criminal Penalties

You may be subject to criminal prosecution

(brought to trial) for actions such as:

1. Tax evasion;

2. Willful failure to file a return, supply infor-

mation, or pay any tax due;

3. Fraud and false statements;

4. Preparing and filing a fraudulent return; or

5. Identity theft.

Identity Theft

Identity theft occurs when someone uses your

personal information such as your name, SSN,

or other identifying information, without your

permission, to commit fraud or other crimes. An

identity thief may use your SSN to get a job or

may file a tax return using your SSN to receive a

refund.

To reduce your risk:

•

Protect your SSN,

•

Ensure your employer is protecting your

SSN, and

•

Be careful when choosing a tax preparer.

If your tax records are affected by identity

theft and you receive a notice from the IRS, re-

spond right away to the name and phone num-

ber printed on the IRS notice or letter.

If your SSN has been lost or stolen or you

suspect you are a victim of tax-related identity

theft, visit IRS.gov/IdentityTheft to learn what

steps you should take.

For more information, see Pub. 5027.

All taxpayers are now eligible for an

Identity Protection Personal Identifica-

tion Number (IP PIN). For more infor-

mation, see Pub. 5477. To apply for an IP PIN,

go to IRS.gov/IPPIN and use the Get an IP PIN

tool.

Victims of identity theft who are experienc-

ing economic harm or a systemic problem, or

are seeking help in resolving tax problems that

have not been resolved through normal chan-

nels, may be eligible for Taxpayer Advocate

Service (TAS) assistance. You can reach TAS

by calling the National Taxpayer Advocate help-

line at 877-777-4778 or 800-829-4059 (TTY/

TDD). Deaf or hard-of-hearing individuals can

also contact the IRS through the Telecommuni-

cations Relay Services (TRS) at FCC.gov/TRS.

Protect yourself from suspicious emails

or phishing schemes. Phishing is the creation

and use of email and websites designed to

TIP

mimic legitimate business emails and websites.

The most common form is the act of sending an

email to a user falsely claiming to be an estab-

lished legitimate enterprise in an attempt to

scam the user into surrendering private informa-

tion that will be used for identity theft.

The IRS doesn't initiate contacts with tax-

payers via emails. Also, the IRS doesn't request

detailed personal information through email or

ask taxpayers for the PIN numbers, passwords,

or similar secret access information for their

credit card, bank, or other financial accounts.

If you receive an unsolicited email claiming

to be from the IRS, forward the message to

[email protected]v. You may also report misuse

of the IRS name, logo, forms, or other IRS prop-

erty to the Treasury Inspector General for Tax

Administration toll free at 800-366-4484. You

can forward suspicious emails to the Federal

Trade Commission (FTC) at [email protected]v or

report them at ftc.gov/complaint. You can con-

tact them at ftc.gov/idtheft or 877-IDTHEFT

(877-438-4338). If you have been a victim of

identity theft, see IdentityTheft.gov or Pub.

5027. People who are deaf, hard of hearing, or

have a speech disability and who have access

to TTY/TDD equipment can call 866-653-4261.

Go to IRS.gov/IDProtection to learn more

about identity theft and how to reduce your risk.

Filing Status

Introduction

This chapter helps you determine which filing

status to use. There are five filing statuses.

•

Single.

•

Married filing jointly.

•

Married filing separately.

•

Head of household.

•

Qualifying surviving spouse.

If more than one filing status applies to

you, choose the one that will give you

the lowest tax.

You must determine your filing status before

you can determine whether you must file a tax

return (chapter 1), your standard deduction

(chapter 10), and your tax (chapter 11). You

also use your filing status to determine whether

you are eligible to claim certain deductions and

credits.

Useful Items

You may want to see:

Publication

3 Armed Forces’ Tax Guide

501 Dependents, Standard Deduction,

and Filing Information

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501

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Publication 17 (2023) Chapter 2 Filing Status 21

503 Child and Dependent Care Expenses

519 U.S. Tax Guide for Aliens

555 Community Property

559 Survivors, Executors, and

Administrators

596 Earned Income Credit (EIC)

925 Passive Activity and At-Risk Rules

971 Innocent Spouse Relief

For these and other useful items, go to IRS.gov/

Forms.

Marital Status

In general, your filing status depends on

whether you are considered unmarried or mar-

ried.

Unmarried persons. You are considered un-

married for the whole year if, on the last day of

your tax year, you are either:

•

Unmarried, or

•

Legally separated from your spouse under

a divorce or separate maintenance decree.

State law governs whether you are married

or legally separated under a divorce or separate

maintenance decree.

Divorced persons. If you are divorced un-

der a final decree by the last day of the year,

you are considered unmarried for the whole

year.

Divorce and remarriage. If you obtain a di-

vorce for the sole purpose of filing tax returns as

unmarried individuals, and at the time of divorce

you intend to and do, in fact, remarry each other

in the next tax year, you and your spouse must

file as married individuals in both years.

Annulled marriages. If you obtain a court

decree of annulment, which holds that no valid

marriage ever existed, you are considered un-

married even if you filed joint returns for earlier

years. File Form 1040-X, Amended U.S. Individ-

ual Income Tax Return, claiming single or head

of household status for all tax years that are af-

fected by the annulment and not closed by the

statute of limitations for filing a tax return. Gen-

erally, for a credit or refund, you must file Form

1040-X within 3 years (including extensions) af-

ter the date you filed your original return or

within 2 years after the date you paid the tax,

whichever is later. If you filed your original return

early (for example, March 1), your return is con-

sidered filed on the due date (generally April

15). However, if you had an extension to file (for

example, until October 15) but you filed earlier

and we received it on July 1, your return is con-

sidered filed on July 1.

Head of household or qualifying surviv-

ing spouse. If you are considered unmarried,

you may be able to file as head of household or

as qualifying surviving spouse. See Head of

Household and Qualifying Surviving Spouse,

later, to see if you qualify.

Married persons. If you are considered mar-

ried, you and your spouse can file a joint return

or separate returns.

Considered married. You are considered

married for the whole year if, on the last day of

503

519

555

559

596

925

971

your tax year, you and your spouse meet any

one of the following tests.

1. You are married and living together.

2. You are living together in a common law

marriage recognized in the state where

you now live or in the state where the com-

mon law marriage began.

3. You are married and living apart, but not

legally separated under a decree of di-

vorce or separate maintenance.

4. You are separated under an interlocutory

(not final) decree of divorce.

Spouse died during the year. If your

spouse died during the year, you are consid-

ered married for the whole year for filing status

purposes.

If you didn't remarry before the end of the

tax year, you can file a joint return for yourself

and your deceased spouse. For the next 2

years, you may be entitled to the special bene-

fits described later under Qualifying Surviving

Spouse.

If you remarried before the end of the tax

year, you can file a joint return with your new

spouse. Your deceased spouse's filing status is

married filing separately for that year.

Married persons living apart. If you live

apart from your spouse and meet certain tests,

you may be able to file as head of household

even if you aren't divorced or legally separated.

If you qualify to file as head of household in-

stead of married filing separately, your standard

deduction will be higher. Also, your tax may be

lower, and you may be able to claim the earned

income credit (EIC). See Head of Household,

later.

Single

Your filing status is single if you are considered

unmarried and you don’t qualify for another fil-

ing status. To determine your marital status, see

Marital Status, earlier.

Spouse died before January 1, 2023. Your

filing status may be single if your spouse died

before January 1, 2023, and you didn't remarry

before the end of 2023. You may, however, be

able to use another filing status that will give

you a lower tax. See Head of Household and

Qualifying Surviving Spouse, later, to see if you

qualify.

How to file. On Form 1040 or 1040-SR, show

your filing status as single by checking the “Sin-

gle” box on the Filing Status line near the top of

the form. Use the Single column of the Tax Ta-

ble, or Section A of the Tax Computation Work-

sheet, to figure your tax.

Married Filing Jointly

You can choose married filing jointly as your fil-

ing status if you are considered married and

both you and your spouse agree to file a joint re-

turn. On a joint return, you and your spouse re-

port your combined income and deduct your

combined allowable expenses. You can file a

joint return even if one of you had no income or

deductions.

If you and your spouse decide to file a joint

return, your tax may be lower than your com-

bined tax for the other filing statuses. Also, your

standard deduction (if you don’t itemize deduc-

tions) may be higher, and you may qualify for

tax benefits that don’t apply to other filing sta-

tuses.

How to file. On Form 1040 or 1040-SR, show

your filing status as married filing jointly by

checking the “Married filing jointly” box on the

Filing Status line near the top of the form. Use

the Married filing jointly column of the Tax Table,

or Section B of the Tax Computation Work-

sheet, to figure your tax.

If you and your spouse each have in-

come, you may want to figure your tax

both on a joint return and on separate

returns (using the filing status of married filing

separately). You can choose the method that

gives the two of you the lower combined tax un-

less you are required to file separately.

Spouse died. If your spouse died during the

year, you are considered married for the whole

year and can choose married filing jointly as

your filing status. See Spouse died during the

year under Married persons, earlier, for more in-

formation.

If your spouse died in 2024 before filing a

2023 return, you can choose married filing

jointly as your filing status on your 2023 return.

Divorced persons. If you are divorced under a

final decree by the last day of the year, you are

considered unmarried for the whole year and

you can’t choose married filing jointly as your fil-

ing status.

Filing a Joint Return

Both you and your spouse must include all of

your income and deductions on your joint re-

turn.

Accounting period. Both of you must use the

same accounting period, but you can use differ-

ent accounting methods. See Accounting Peri-

ods and Accounting Methods in chapter 1.

Joint responsibility. Both of you may be held

responsible, jointly and individually, for the tax

and any interest or penalty due on your joint re-

turn. This means that if one spouse doesn't pay

the tax due, the other may have to. Or, if one

spouse doesn't report the correct tax, both

spouses may be responsible for any additional

taxes assessed by the IRS. One spouse may be

held responsible for all the tax due even if all the

income was earned by the other spouse.

You may want to file separately if:

•

You believe your spouse isn't reporting all

of their income, or

•

You don’t want to be responsible for any

taxes due if your spouse doesn't have

enough tax withheld or doesn't pay enough

estimated tax.

Divorced taxpayer. You may be held jointly

and individually responsible for any tax, interest,

and penalties due on a joint return filed before

your divorce. This responsibility may apply even

if your divorce decree states that your former

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22 Chapter 2 Filing Status Publication 17 (2023)

spouse will be responsible for any amounts due

on previously filed joint returns.

Relief from joint responsibility. In some

cases, one spouse may be relieved of joint re-

sponsibility for tax, interest, and penalties on a

joint return for items of the other spouse that

were incorrectly reported on the joint return. You

can ask for relief no matter how small the liabil-

ity.

There are three types of relief available.

1. Innocent spouse relief.

2. Separation of liability (available only to

joint filers whose spouse has died, or who

are divorced, legally separated, or haven't

lived together for the 12 months ending on

the date the election for this relief is filed).

3. Equitable relief.

You must file Form 8857, Request for Inno-

cent Spouse Relief, to request relief from joint

responsibility. Pub. 971 explains these kinds of

relief and who may qualify for them.

Signing a joint return. For a return to be con-

sidered a joint return, both spouses must gener-

ally sign the return.

Spouse died before signing. If your

spouse died before signing the return, the exec-

utor or administrator must sign the return for

your spouse. If neither you nor anyone else has

yet been appointed as executor or administra-

tor, you can sign the return for your spouse and

enter “Filing as surviving spouse” in the area

where you sign the return.

Spouse away from home. If your spouse is

away from home, you should prepare the return,

sign it, and send it to your spouse to sign so that

it can be filed on time.

Injury or disease prevents signing. If your

spouse can’t sign because of disease or injury

and tells you to sign for them, you can sign your

spouse’s name in the proper space on the re-

turn followed by the words “By (your name),

Spouse.” Be sure to sign in the space provided

for your signature. Attach a dated statement,

signed by you, to the return. The statement

should include the form number of the return

you are filing, the tax year, and the reason your

spouse can’t sign; it should also state that your

spouse has agreed to your signing for them.

Signing as guardian of spouse. If you are

the guardian of your spouse who is mentally in-

competent, you can sign the return for your

spouse as guardian.

Spouse in combat zone. You can sign a

joint return for your spouse if your spouse can’t

sign because they are serving in a combat zone

(such as the Persian Gulf Area, Serbia, Monte-

negro, Albania, or Afghanistan), even if you

don’t have a power of attorney or other state-

ment. Attach a signed statement to your return

explaining that your spouse is serving in a com-

bat zone. For more information on special tax

rules for persons who are serving in a combat

zone, or who are in missing status as a result of

serving in a combat zone, see Pub. 3.

Power of attorney. In order for you to sign a

return for your spouse in any of these cases,

you must attach to the return a power of attor-

ney (POA) that authorizes you to sign for your

spouse. You can use a POA that states that you

have been granted authority to sign the return,

or you can use Form 2848. Part I of Form 2848

must state that you are granted authority to sign

the return.

Nonresident alien or dual-status alien. Gen-

erally, a married couple can’t file a joint return if

either one is a nonresident alien at any time dur-

ing the tax year. However, if one spouse was a

nonresident alien or dual-status alien who was

married to a U.S. citizen or resident alien at the

end of the year, the spouses can choose to file

a joint return. If you do file a joint return, you and

your spouse are both treated as U.S. residents

for the entire tax year. See chapter 1 of Pub.

519.

Married Filing

Separately

You can choose married filing separately as

your filing status if you are married. This filing

status may benefit you if you want to be respon-

sible only for your own tax or if it results in less

tax than filing a joint return.

If you and your spouse don’t agree to file a

joint return, you must use this filing status un-

less you qualify for head of household status,

discussed later.

You may be able to choose head of house-

hold filing status if you are considered unmar-

ried because you live apart from your spouse

and meet certain tests (explained under Head

of Household, later). This can apply to you even

if you aren't divorced or legally separated. If you

qualify to file as head of household, instead of

as married filing separately, your tax may be

lower, you may be able to claim the EIC and

certain other benefits, and your standard de-

duction will be higher. The head of household

filing status allows you to choose the standard

deduction even if your spouse chooses to item-

ize deductions. See Head of Household, later,

for more information.

You will generally pay more combined

tax on separate returns than you would

on a joint return for the reasons listed

under Special Rules, later. However, unless you

are required to file separately, you should figure

your tax both ways (on a joint return and on sep-

arate returns). This way, you can make sure you

are using the filing status that results in the low-

est combined tax. When figuring the combined

tax of a married couple, you may want to con-

sider state taxes as well as federal taxes.

How to file. If you file a separate return, you

generally report only your own income, credits,

and deductions.

Select this filing status by checking the

“Married filing separately” box on the Filing Sta-

tus line near the top of Form 1040 or 1040-SR.

Enter your spouse's full name and SSN or ITIN

in the entry space at the bottom of the Filing

Status section. If your spouse doesn't have and

isn't required to have an SSN or ITIN, enter

“NRA” in the space for your spouse's SSN. Use

the Married filing separately column of the Tax

Table, or Section C of the Tax Computation

Worksheet, to figure your tax.

TIP

Special Rules

If you choose married filing separately as your

filing status, the following special rules apply.

Because of these special rules, you usually pay

more tax on a separate return than if you use

another filing status you qualify for.

1. Your tax rate is generally higher than on a

joint return.

2. Your exemption amount for figuring the al-

ternative minimum tax is half that allowed

on a joint return.

3. You can’t take the credit for child and de-

pendent care expenses in most cases,

and the amount you can exclude from in-

come under an employer's dependent

care assistance program is limited to

$2,500 (instead of $5,000 on a joint re-

turn). However, if you are legally separated

or living apart from your spouse, you may

be able to file a separate return and still

take the credit. For more information about

these expenses, the credit, and the exclu-

sion, see What’s Your Filing Status? in

Pub. 503.

4. You can’t take the EIC, unless you have a

qualifying child and meet certain other re-

quirements. See Pub. 596.

5. You can’t take the exclusion or credit for

adoption expenses in most cases.

6. You can’t take the education credits (the

American opportunity credit and lifetime

learning credit), or the deduction for stu-

dent loan interest.

7. You can’t exclude any interest income from

qualified U.S. savings bonds you used for

higher education expenses.

8. If you lived with your spouse at any time

during the tax year:

a. You can’t claim the credit for the eld-

erly or the disabled, and

b. You must include in income a greater

percentage (up to 85%) of any social

security or equivalent railroad retire-

ment benefits you received.

9. The following credits and deductions are

reduced at income levels half of those for

a joint return.

a. The child tax credit and the credit for

other dependents.

b. The retirement savings contributions

credit.

10.

Your capital loss deduction limit is $1,500

(instead of $3,000 on a joint return).

11.

If your spouse itemizes deductions, you

can’t claim the standard deduction. If you

can claim the standard deduction, your ba-

sic standard deduction is half of the

amount allowed on a joint return.

Adjusted gross income (AGI) limits. If your

AGI on a separate return is lower than it would

have been on a joint return, you may be able to

deduct a larger amount for certain deductions

that are limited by AGI, such as medical expen-

ses.

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Publication 17 (2023) Chapter 2 Filing Status 23

Individual retirement arrangements (IRAs).

You may not be able to deduct all or part of your

contributions to a traditional IRA if you or your

spouse was covered by an employee retirement

plan at work during the year. Your deduction is

reduced or eliminated if your income is more

than a certain amount. This amount is much

lower for married individuals who file separately

and lived together at any time during the year.

For more information, see How Much Can You

Deduct in chapter 9.

Rental activity losses. If you actively partici-

pated in a passive rental real estate activity that

produced a loss, you can generally deduct the

loss from your nonpassive income, up to

$25,000. This is called a special allowance.

However, married persons filing separate re-

turns who lived together at any time during the

year can’t claim this special allowance. Married

persons filing separate returns who lived apart

at all times during the year are each allowed a

$12,500 maximum special allowance for losses

from passive real estate activities. See Rental

Activities in Pub. 925 for more information.

Community property states. If you live in a

community property state and file separately,

your income may be considered separate in-

come or community income for income tax pur-

poses. Community property states include Ari-

zona, California, Idaho, Louisiana, Nevada, New

Mexico, Texas, Washington, and Wisconsin.

See Pub. 555 for more information.

Joint Return After

Separate Returns

You can change your filing status from a sepa-

rate return to a joint return by filing an amended

return using Form 1040-X.

You can generally change to a joint return

any time within 3 years from the due date of the

separate return or returns. This doesn't include

any extensions. A separate return includes a re-

turn filed by you or your spouse claiming mar-

ried filing separately, single, or head of house-

hold filing status.

Separate Returns After

Joint Return

Once you file a joint return, you can’t choose to

file separate returns for that year after the due

date of the return.

Exception. A personal representative for a de-

cedent can change from a joint return elected

by the surviving spouse to a separate return for

the decedent. The personal representative has

1 year from the due date (including extensions)

of the return to make the change. See Pub. 559

for more information on filing a return for a dece-

dent.

Head of Household

You may be able to file as head of household if

you meet all of the following requirements.

1. You are unmarried or considered unmar-

ried on the last day of the year. See Marital

Status, earlier, and Considered Unmar-

ried, later.

2. You paid more than half of the cost of

keeping up a home for the year.

3. A qualifying person lived with you in the

home for more than half the year (except

for temporary absences, such as school).

However, if the qualifying person is your

dependent parent, your dependent parent

doesn't have to live with you. See Special

rule for parent, later, under Qualifying Per-

son.

If you qualify to file as head of house-

hold, your tax rate will usually be lower

than the rates for single or married fil-

ing separately. You will also receive a higher

standard deduction than if you file as single or

married filing separately.

How to file. Indicate your choice of this filing

status by checking the “Head of household” box

on the Filing Status line near the top of Form

1040 or 1040-SR. If the child who qualifies you

for this filing status isn't claimed as your de-

pendent in the Dependents section of Form

1040 or 1040-SR, enter the child's name in the

entry space at the bottom of the Filing Status

section. Use the Head of a household column

of the Tax Table, or Section D of the Worksheet,

to figure your tax.

Considered Unmarried

To qualify for head of household status, you

must be either unmarried or considered unmar-

ried on the last day of the year. You are consid-

ered unmarried on the last day of the tax year if

you meet all of the following tests.

1. You file a separate return. A separate re-

turn includes a return claiming married fil-

ing separately, single, or head of house-

hold filing status.

2. You paid more than half of the cost of

keeping up your home for the tax year.

3. Your spouse didn't live in your home during

the last 6 months of the tax year. Your

spouse is considered to live in your home

even if your spouse is temporarily absent

due to special circumstances. See Tempo-

rary absences under Qualifying Person,

later.

4. Your home was the main home of your

child, stepchild, or foster child for more

than half the year. (See Home of qualifying

person under Qualifying Person, later, for

rules applying to a child's birth, death, or

temporary absence during the year.)

5. You must be able to claim the child as a

dependent. However, you meet this test if

you can’t claim the child as a dependent

only because the noncustodial parent can

claim the child using the rules described in

Children of divorced or separated parents

(or parents who live apart) under Qualify-

ing Child in chapter 3, or referred to in

Support Test for Children of Divorced or

Separated Parents (or Parents Who Live

Apart) under Qualifying Relative in chap-

ter 3. The general rules for claiming a child

as a dependent are explained in chapter 3.

You may be considered unmarried for the

purpose of using head of household status but

TIP

not for other purposes, such as claiming the

EIC. Different tests apply depending on the tax

benefit you claim.

If you were considered married for part

of the year and lived in a community

property state (listed earlier under Mar-

ried Filing Separately), special rules may apply

in determining your income and expenses. See

Pub. 555 for more information.

Nonresident alien spouse. You are consid-

ered unmarried for head of household purposes

if your spouse was a nonresident alien at any

time during the year and you don’t choose to

treat your nonresident spouse as a resident

alien. However, your spouse isn't a qualifying

person for head of household purposes. You

must have another qualifying person and meet

the other tests to be eligible to file as head of

household.

Choice to treat spouse as resident. You

are considered married if you choose to treat

your spouse as a resident alien. See chapter 1

of Pub. 519.

Keeping Up a Home

To qualify for head of household status, you

must pay more than half of the cost of keeping

up a home for the year. You can determine

whether you paid more than half of the cost of

keeping up a home by using Worksheet 2-1.

Costs you include. Include in the cost of

keeping up a home expenses, such as rent,

mortgage interest, real estate taxes, insurance

on the home, repairs, utilities, and food eaten in

the home.

Costs you don’t include. Don’t include the

costs of clothing, education, medical treatment,

vacations, life insurance, or transportation. Also

don’t include the value of your services or those

of a member of your household.

Qualifying Person

See Table 2-1 to see who is a qualifying person.

Any person not described in Table 2-1 isn't a

qualifying person.

Example 1—Child. Your unmarried child

lived with you all year and was 18 years old at

the end of the year. Your child didn't provide

more than half of their own support and doesn't

meet the tests to be a qualifying child of anyone

else. As a result, this child is your qualifying

child (see Qualifying Child in chapter 3) and,

because this child is single, this is your qualify-

ing person for head of household purposes.

Example 2—Child who isn't qualifying

person. The facts are the same as in Exam-

ple 1, except your child was 25 years old at the

end of the year and your child’s gross income

was $5,000. Because your child doesn't meet

the age test (explained under Qualifying Child in

chapter 3), your child isn't your qualifying child.

Because the child doesn't meet the gross in-

come test (explained under Qualifying Relative

in chapter 3), the child isn't your qualifying rela-

tive. As a result, this child isn't your qualifying

person for head of household purposes.

CAUTION

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24 Chapter 2 Filing Status Publication 17 (2023)

Example 3—Friend. Your friend lived with

you all year. Even though your friend may be

your qualifying relative if the gross income and

support tests (explained in chapter 3) are met,

your friend isn't your qualifying person for head

of household purposes because your friend isn't

related to you in one of the ways listed under

Relatives who don’t have to live with you in

chapter 3. See Table 2-1.

Example 4—Friend's child. The facts are

the same as in Example 3, except your friend's

10-year-old child also lived with you all year.

Your friend’s child isn't your qualifying child and,

because the child is your friend's qualifying

child, your friend’s child isn't your qualifying rel-

ative (see Not a Qualifying Child Test in chap-

ter 3). As a result, your friend’s child isn't your

qualifying person for head of household purpo-

ses.

Home of qualifying person. Generally, the

qualifying person must live with you for more

than half the year.

Special rule for parent. If your qualifying

person is your parent, you may be eligible to file

as head of household even if your parent

doesn't live with you. However, you must be

able to claim your parent as a dependent. Also,

you must pay more than half of the cost of keep-

ing up a home that was the main home for the

entire year for your parent.

If you pay more than half of the cost of keep-

ing your parent in a rest home or home for the

elderly, that counts as paying more than half of

the cost of keeping up your parent's main home.

Death or birth. You may be eligible to file as

head of household even if the individual who

qualifies you for this filing status is born or dies

during the year. If the individual is your qualify-

ing child, the child must have lived with you for

more than half the part of the year the child was

alive. If the individual is anyone else, see Pub.

501 for more information.

Temporary absences. You and your quali-

fying person are considered to live together

even if one or both of you are temporarily ab-

sent from your home due to special circumstan-

ces, such as illness, education, business, vaca-

tion, military service, or detention in a juvenile

facility. It must be reasonable to assume the ab-

sent person will return to the home after the

temporary absence. You must continue to keep

up the home during the absence.

Adopted child or foster child. You may be

eligible to file as head of household if the per-

son who qualifies you for this filing status was

an adopted child or foster child. For more infor-

mation, see Pub. 501.

Kidnapped child. You may be eligible to file

as head of household even if the child who is

your qualifying person has been kidnapped. For

more information, see Pub. 501.

Qualifying Surviving

Spouse

If your spouse died in 2023, you can use mar-

ried filing jointly as your filing status for 2023 if

you otherwise qualify to use that status. The

year of death is the last year for which you can

file jointly with your deceased spouse. See Mar-

ried Filing Jointly, earlier.

You may be eligible to use qualifying surviv-

ing spouse as your filing status for 2 years fol-

lowing the year your spouse died. For example,

if your spouse died in 2022, and you haven't re-

married, you may be able to use this filing status

for 2023 and 2024.

This filing status entitles you to use joint re-

turn tax rates and the highest standard deduc-

tion amount (if you don’t itemize deductions). It

doesn't entitle you to file a joint return.

How to file. Indicate your choice of this filing

status by checking the “Qualifying surviving

spouse” box on the Filing Status line near the

top of Form 1040 or 1040-SR. If the child who

qualifies you for this filing status isn’t claimed as

your dependent in the Dependents section of

Form 1040 or 1040-SR, enter the child’s name

in the entry space at the bottom of the Filing

Status section. Use the Married filing jointly col-

umn of the Tax Table, or Section B of the Tax

Computation Worksheet, to figure your tax.

Eligibility rules. You are eligible to file your

2023 return as a qualifying surviving spouse if

you meet all of the following tests.

•

You were entitled to file a joint return with

your spouse for the year your spouse died.

It doesn't matter whether you actually filed

a joint return.

•

Your spouse died in 2021 or 2022 and you

didn't remarry before the end of 2023.

•

You have a child or stepchild (not a foster

child) whom you can claim as a dependent

or could claim as a dependent except that,

for 2023:

a. The child had gross income of

$4,700 or more,

b. The child filed a joint return, or

c. You could be claimed as a depend-

ent on someone else’s return.

If the child isn't claimed as your de-

pendent in the Dependents section on

Form 1040 or 1040-SR, enter the child's

name in the entry space at the bottom of

the Filing Status section. If you don’t enter

the name, it will take us longer to process

your return.

•

This child lived in your home all year, ex-

cept for temporary absences. See Tempo-

rary absences, earlier, under Head of

Household. There are also exceptions, de-

scribed later, for a child who was born or

died during the year and for a kidnapped

child.

•

You paid more than half of the cost of

keeping up a home for the year. See Keep-

ing Up a Home, earlier, under Head of

Household.

Example. Your spouse died in 2021 and

you haven’t remarried. During 2022 and 2023

you continued to keep up a home for you and

your child who lives with you and whom you can

claim as a dependent. For 2021, you were enti-

tled to file a joint return for you and your de-

ceased spouse. For 2022 and 2023, you can file

as qualifying surviving spouse. After 2023, you

can file as head of household if you qualify.

Death or birth. You may be eligible to file as a

qualifying surviving spouse if the child who

qualifies you for this filing status is born or dies

during the year. You must have provided more

than half of the cost of keeping up a home that

was the child's main home during the entire part

of the year the child was alive.

Adopted child. You may be eligible to file as a

qualifying surviving spouse if the child who

qualifies you for this filing status you adopted in

2023 or was lawfully placed with you for legal

adoption by you in 2023. The child is consid-

ered to have lived with you for all of 2023 if your

main home was this child’s main home for the

entire time since this child was adopted or

placed with you in 2023.

Kidnapped child. You may be eligible to file as

a qualifying surviving spouse even if the child

Worksheet 2-1. Cost of Keeping

Up a Home

Keep for Your Records

Amount

You Paid Total Cost

Property taxes $ $

Mortgage interest expense

Rent

Utility charges

Repairs/Maintenance

Property insurance

Food eaten in the home

Other household expenses

Totals $ $

Minus total amount you paid ( )

Amount others paid $

If the total amount you paid is more than the amount others paid, you meet the

requirement of paying more than half of the cost of keeping up the home.

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Publication 17 (2023) Chapter 2 Filing Status 25

who qualifies you for this filing status has been

kidnapped. See Pub. 501 for more information.

As mentioned earlier, the filing status

qualifying surviving spouse is available

for only 2 years following the year your

spouse died.

CAUTION

Dependents

Introduction

This chapter discusses the following topics.

•

Dependents—You can generally claim

your qualifying child or qualifying relative

as a dependent.

•

Social security number (SSN) requirement

for dependents—You must list the SSN of

any person you claim as a dependent.

How to claim dependents. On page 1 of your

Form 1040 or 1040-SR, enter the names of your

dependents in the Dependents section.

Useful Items

You may want to see:

Publication

501 Dependents, Standard Deduction,

and Filing Information

503 Child and Dependent Care Expenses

526 Charitable Contributions

Form (and Instructions)

2120 Multiple Support Declaration

8332 Release/Revocation of Release of

Claim to Exemption for Child by

Custodial Parent

Dependents

The term “dependent” means:

•

A qualifying child, or

501

503

526

2120

8332

Who Is a Qualifying Person Qualifying You To File as Head of Household?

Caution. See the text of this chapter for the other requirements you must meet to claim head of household

filing status.

IF the person is your . . . AND . . . THEN that person is . . .

qualifying child (such as a son,

daughter, or grandchild who lived with

you more than half the year and meets

certain other tests)

the child is single a qualifying person, whether or

not the child meets the Citizen or

Resident Test in chapter 3.

the child is married and you can claim the

child as a dependent

a qualifying person.

the child is married and you can’t claim the

child as a dependent

not a qualifying person.

qualifying relative

who is your father or

mother

you can claim your parent as a dependent

a qualifying person.

you can’t claim your parent as a dependent not a qualifying person.

qualifying relative

other than your father

or mother (such as a grandparent,

brother, or sister who meets certain

tests)

your relative lived with you more than half

the year, and your relative is related to you in

one of the ways listed under Relatives who

don’t have to live with you in chapter 3 and

you can claim your relative as a dependent

a qualifying person.

your relative didn't live with you more than

half the year

not a qualifying person.

your relative isn't related to you in one of the

ways listed under Relatives who don’t have

to live with you in chapter 3 and is your

qualifying relative only because your relative

lived with you all year as a member of your

household

not a qualifying person.

you can’t claim your relative as a dependent not a qualifying person.

A person can’t qualify more than one taxpayer to use the head of household filing status for the year.

The term “qualifying child” is defined in chapter 3. Note. If you are a noncustodial parent, the term “qualifying child” for head of household filing status doesn't include a child who is your

qualifying child only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. If you are the

custodial parent and those rules apply, the child is generally your qualifying child for head of household filing status even though the child isn't a qualifying child you can claim as a

dependent.

This person is a qualifying person if the only reason you can’t claim the person as a dependent is that you, or your spouse if filing jointly, can be claimed as a dependent on another

taxpayer’s return.

The term “qualifying relative” is defined in chapter 3.

If you can claim a person as a dependent only because of a multiple support agreement, that person isn't a qualifying person. See Multiple Support Agreement in chapter 3.

See Special rule for parent under Qualifying Person, earlier.

Table 2-1.

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26 Chapter 3 Dependents Publication 17 (2023)

•

A qualifying relative.

The terms “qualifying child” and “qualifying

relative” are defined later.

All the requirements for claiming a depend-

ent are summarized in Table 3-1.

Housekeepers, maids, or servants. If these

people work for you, you can’t claim them as

dependents.

Child tax credit. You may be entitled to a child

tax credit for each qualifying child who was un-

der age 17 at the end of the year if you claimed

that child as a dependent. For more information,

see chapter 14.

Credit for other dependents. You may be en-

titled to a credit for other dependents for each

qualifying child who does not qualify you for the

child tax credit and for each qualifying relative.

For more information, see chapter 14.

Exceptions

Even if you have a qualifying child or qualifying

relative, you can claim that person as a depend-

ent only if these three tests are met.

1. Dependent taxpayer test.

2. Joint return test.

3. Citizen or resident test.

These three tests are explained in detail

here.

Dependent Taxpayer Test

If you can be claimed as a dependent by an-

other taxpayer, you can’t claim anyone else as a

dependent. Even if you have a qualifying child

Overview of the Rules for Claiming a Dependent

Caution. This table is only an overview of the rules. For details, see the rest of this chapter.

•

You can’t claim any dependents if you (or your spouse if filing jointly) could be claimed as a dependent by another taxpayer,

unless that taxpayer files a return only to claim a refund of withheld income tax or estimated tax paid.

•

You can’t claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of

withheld income tax or estimated tax paid.

•

You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of

Canada or Mexico.

•

You can’t claim a person as a dependent unless that person is your qualifying child or qualifying relative.

Tests To Be a Qualifying Child Tests To Be a Qualifying Relative

1. The child must be your son, daughter, stepchild, foster child,

brother, sister, half brother, half sister, stepbrother, stepsister,

or a descendant of any of them.

2. The child must be (a) under age 19 at the end of the year and

younger than you (or your spouse if filing jointly); (b) under age

24 at the end of the year, a student, and younger than you (or

your spouse if filing jointly); or (c) any age if permanently and

totally disabled.

3. The child must have lived with you for more than half of the

year.

4. The child must not have provided more than half of the child’s

own support for the year.

5. The child must not be filing a joint return for the year (unless

that joint return is filed only to get a refund of income tax

withheld or estimated tax paid).

If the child meets the rules to be a qualifying child of more than one

person, generally only one person can actually treat the child as a

qualifying child. See Qualifying Child of More Than One Person,

later, to find out which person is the person entitled to claim the

child as a qualifying child.

1. The person can’t be your qualifying child or the

qualifying child of any other taxpayer.

2. The person either (a) must be related to you in one of

the ways listed under Relatives who don’t have to live

with you, or (b) must live with you all year as a member

of your household

(and your relationship must not

violate local law).

3. The person's gross income for the year must be less

than $4,700.

4. You must provide more than half of the person's total

support for the year.

There is an exception for certain adopted children.

There are exceptions for temporary absences, children who were born or died during the year, children who were adopted or lawfully placed for

adoption during the year, children who are eligible foster children placed during the year, children of divorced or separated parents (or parents who

live apart), and kidnapped children.

There is an exception if the person is disabled and has income from a sheltered workshop.

There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped

children.

Table 3-1.

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Publication 17 (2023) Chapter 3 Dependents 27

or qualifying relative, you can’t claim that person

as a dependent.

If you are filing a joint return and your

spouse can be claimed as a dependent by an-

other taxpayer, you and your spouse can’t claim

any dependents on your joint return.

Exception. If you can be claimed as a depend-

ent by another taxpayer, you can claim some-

one else as a dependent if the person who can

claim you (or your spouse if filing a joint return)

as a dependent files a return only to claim a re-

fund of income tax withheld or estimated.

Joint Return Test

You generally can’t claim a married person as a

dependent if that person files a joint return.

Exception. You can claim a person as a de-

pendent who files a joint return if that person

and that person’s spouse file the joint return

only to claim a refund of income tax withheld or

estimated tax paid.

Example 1—Child files joint return. You

supported your 18-year-old child who lived with

you all year while your child’s spouse was in the

Armed Forces. Your child’s spouse earned

$35,000 for the year. The couple files a joint re-

turn. You can’t claim your child as a dependent.

Example 2—Child files joint return only

as claim for refund of withheld tax. Your

18-year-old child and your child’s 17-year-old

spouse had $800 of wages from part-time jobs

and no other income. They lived with you all

year. Neither is required to file a tax return. They

don’t have a child. Taxes were taken out of their

pay, so they filed a joint return only to get a re-

fund of the withheld taxes. The exception to the

joint return test applies, so you aren't disquali-

fied from claiming each of them as a dependent

just because they file a joint return. You can

claim each of them as a dependent if all the

other tests to do so are met.

Example 3—Child files joint return to

claim American opportunity credit. The

facts are the same as in Example 2, except no

taxes were taken out of your child’s pay or your

child’s spouse’s pay. However, they file a joint

return to claim an American opportunity credit

of $124 and get a refund of that amount. Be-

cause they filed a joint return claiming the

American opportunity credit, they aren't filing it

only to get a refund of income tax withheld or

estimated tax paid. The exception to the joint re-

turn test doesn't apply, so you can’t claim either

of them as a dependent.

Citizen or Resident Test

You generally can’t claim a person as a depend-

ent unless that person is a U.S. citizen, U.S. res-

ident alien, U.S. national, or a resident of Can-

ada or Mexico. However, there is an exception

for certain adopted children, as explained next.

Exception for adopted child. If you are a U.S.

citizen or U.S. national who has legally adopted

a child who isn't a U.S. citizen, U.S. resident

alien, or U.S. national, this test is met if the child

lived with you as a member of your household

all year. This exception also applies if the child

was lawfully placed with you for legal adoption

and the child lived with you for the rest of the

year after placement.

Child's place of residence. Children are usu-

ally citizens or residents of the country of their

parents.

If you were a U.S. citizen when your child

was born, the child may be a U.S. citizen and

meet this test even if the other parent was a

nonresident alien and the child was born in a

foreign country.

Foreign students' place of residence. For-

eign students brought to this country under a

qualified international education exchange pro-

gram and placed in American homes for a tem-

porary period generally aren't U.S. residents

and don’t meet this test. You can’t claim them

as dependents. However, if you provided a

home for a foreign student, you may be able to

take a charitable contribution deduction. See

Expenses Paid for Student Living With You in

Pub. 526.

U.S. national. A U.S. national is an individual

who, although not a U.S. citizen, owes their alle-

giance to the United States. U.S. nationals in-

clude American Samoans and Northern Ma-

riana Islanders who chose to become U.S.

nationals instead of U.S. citizens.

Qualifying Child

Five tests must be met for a child to be your

qualifying child. The five tests are:

1. Relationship,

2. Age,

3. Residency,

4. Support, and

5. Joint return.

These tests are explained next.

If a child meets the five tests to be the

qualifying child of more than one per-

son, there are rules you must use to

determine which person can actually treat the

child as a qualifying child. See Qualifying Child

of More Than One Person, later.

Relationship Test

To meet this test, a child must be:

•

Your son, daughter, stepchild, or foster

child, or a descendant (for example, your

grandchild) of any of them; or

•

Your brother, sister, half brother, half sister,

stepbrother, or stepsister, or a descendant

(for example, your niece or nephew) of any

of them.

Adopted child. An adopted child is always

treated as your own child. The term “adopted

child” includes a child who was lawfully placed

with you for legal adoption.

Foster child. A foster child is an individual who

is placed with you by an authorized placement

agency or by judgment, decree, or other order

of any court of competent jurisdiction.

CAUTION

Age Test

To meet this test, a child must be:

•

Under age 19 at the end of the year and

younger than you (or your spouse if filing

jointly);

•

A student under age 24 at the end of the

year and younger than you (or your spouse

if filing jointly); or

•

Permanently and totally disabled at any

time during the year, regardless of age.

Example. Your child turned 19 on Decem-

ber 10. Unless this child was permanently and

totally disabled or a student, this child doesn't

meet the age test because, at the end of the

year, this child wasn't under age 19.

Child must be younger than you or spouse.

To be your qualifying child, a child who isn't per-

manently and totally disabled must be younger

than you. However, if you are married filing

jointly, the child must be younger than you or

your spouse but doesn't have to be younger

than both of you.

Example 1—Child not younger than you

or spouse. Your 23-year-old sibling, who is a

student and unmarried, lives with you and your

spouse, who provide more than half of your sib-

ling’s support. Your sibling isn't disabled. Both

you and your spouse are 21 years old, and you

file a joint return. Your sibling isn't your qualify-

ing child because your sibling isn't younger than

you or your spouse.

Example 2—Child younger than your

spouse but not younger than you. The facts

are the same as in Example 1, except your

spouse is 25 years old. Because your sibling is

younger than your spouse, and you and your

spouse are filing a joint return, your sibling is

your qualifying child, even though your sibling

isn't younger than you.

Student defined. To qualify as a student, your

child must be, during some part of each of any 5

calendar months of the year:

1. A full-time student at a school that has a

regular teaching staff and course of study,

and a regularly enrolled student body at

the school; or

2. A student taking a full-time, on-farm train-

ing course given by a school described in

(1), or by a state, county, or local govern-

ment agency.

The 5 calendar months don’t have to be con-

secutive.

Full-time student. A full-time student is a

student who is enrolled for the number of hours

or courses the school considers to be full-time

attendance.

School defined. A school can be an ele-

mentary school; a junior or senior high school; a

college; a university; or a technical, trade, or

mechanical school. However, an on-the-job

training course, correspondence school, or

school offering courses only through the Inter-

net doesn’t count as a school.

Vocational high school students. Stu-

dents who work on “co-op” jobs in private

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28 Chapter 3 Dependents Publication 17 (2023)

industry as a part of a school's regular course of

classroom and practical training are considered

full-time students.

Permanently and totally disabled. Your child

is permanently and totally disabled if both of the

following apply.

•

Your child can’t engage in any substantial

gainful activity because of a physical or

mental condition.

•

A doctor determines the condition has las-

ted or can be expected to last continuously

for at least a year or can lead to death.

Residency Test

To meet this test, your child must have lived with

you for more than half the year. There are ex-

ceptions for temporary absences, children who

were born or died during the year, adopted or

foster children, kidnapped children, and chil-

dren of divorced or separated parents.

Temporary absences. Your child is consid-

ered to have lived with you during periods of

time when one of you, or both, is temporarily

absent due to special circumstances such as:

•

Illness,

•

Education,

•

Business,

•

Vacation,

•

Military service, or

•

Detention in a juvenile facility.

Death or birth of child. A child who was born

or died during the year is treated as having lived

with you more than half of the year if your home

was the child's home more than half of the time

the child was alive during the year. The same is

true if the child lived with you more than half the

year except for any required hospital stay follow-

ing birth.

Child born alive. You may be able to claim

as a dependent a child born alive during the

year, even if the child lived only for a moment.

State or local law must treat the child as having

been born alive. There must be proof of a live

birth shown by an official document, such as a

birth certificate. The child must be your qualify-

ing child or qualifying relative, and all the other

tests to claim the child as a dependent must be

met.

Stillborn child. You can’t claim a stillborn

child as a dependent.

Adopted or foster child. You can treat your

adopted child or foster child as meeting the res-

idency test as follows if you adopted the child in

2023, the child was lawfully placed with you for

legal adoption by you in 2023, or the child was

an eligible foster child placed with you during

2023. This child is considered to have lived with

you for more than half of 2023 if your main

home was this child’s main home for more than

half the time since this child was adopted or

placed with you in 2023.

Kidnapped child. You may be able to treat

your child as meeting the residency test even if

the child has been kidnapped. See Pub. 501 for

details.

Children of divorced or separated parents

(or parents who live apart). In most cases,

because of the residency test, a child of di-

vorced or separated parents is the qualifying

child of the custodial parent. However, the child

will be treated as the qualifying child of the non-

custodial parent if all four of the following state-

ments are true.

1. The parents:

a. Are divorced or legally separated un-

der a decree of divorce or separate

maintenance;

b. Are separated under a written separa-

tion agreement; or

c. Lived apart at all times during the last

6 months of the year, whether or not

they are or were married.

2. The child received over half of the child’s

support for the year from the parents.

3. The child is in the custody of one or both

parents for more than half of the year.

4. Either of the following statements is true.

a. The custodial parent signs a written

declaration, discussed later, that they

won't claim the child as a dependent

for the year, and the noncustodial pa-

rent attaches this written declaration

to their return. (If the decree or agree-

ment went into effect after 1984 and

before 2009, see Post-1984 and

pre-2009 divorce decree or separa-

tion agreement, later. If the decree or

agreement went into effect after 2008,

see Post-2008 divorce decree or sep-

aration agreement, later.)

b. A pre-1985 decree of divorce or sepa-

rate maintenance or written separa-

tion agreement that applies to 2023

states that the noncustodial parent

can claim the child as a dependent,

the decree or agreement wasn't

changed after 1984 to say the non-

custodial parent can’t claim the child

as a dependent, and the noncustodial

parent provides at least $600 for the

child's support during the year.

If statements (1) through (4) are all true, only

the noncustodial parent can:

•

Claim the child as a dependent; and

•

Claim the child as a qualifying child for the

child tax credit, the credit for other depend-

ents, or the additional child tax credit.

However, this doesn’t allow the noncustodial

parent to claim head of household filing status,

the credit for child and dependent care expen-

ses, the exclusion for dependent care benefits,

or the earned income credit. See Applying the

tiebreaker rules to divorced or separated pa-

rents (or parents who live apart), later.

Example—Earned income credit. Even if

statements (1) through (4) are all true and the

custodial parent signs Form 8332 or a substan-

tially similar statement that the custodial parent

won’t claim the child as a dependent for 2023,

this doesn’t allow the noncustodial parent to

claim the child as a qualifying child for the

earned income credit. The custodial parent or

another taxpayer, if eligible, can claim the child

for the earned income credit.

Custodial parent and noncustodial pa-

rent. The custodial parent is the parent with

whom the child lived for the greater number of

nights during the year. The other parent is the

noncustodial parent.

If the parents divorced or separated during

the year and the child lived with both parents

before the separation, the custodial parent is

the one with whom the child lived for the greater

number of nights during the rest of the year.

A child is treated as living with a parent for a

night if the child sleeps:

•

At that parent's home, whether or not the

parent is present; or

•

In the company of the parent, when the

child doesn't sleep at a parent's home (for

example, the parent and child are on vaca-

tion together).

Equal number of nights. If the child lived

with each parent for an equal number of nights

during the year, the custodial parent is the pa-

rent with the higher AGI.

December 31. The night of December 31 is

treated as part of the year in which the night be-

gins. For example, the night of December 31,

2023, is treated as part of 2023.

Emancipated child. If a child is emancipa-

ted under state law, the child is treated as not

living with either parent. See Examples 5 and 6.

Absences. If a child wasn't with either pa-

rent on a particular night (because, for example,

the child was staying at a friend's house), the

child is treated as living with the parent with

whom the child normally would have lived for

that night, except for the absence. But if it can’t

be determined with which parent the child nor-

mally would have lived or if the child wouldn’t

have lived with either parent that night, the child

is treated as not living with either parent that

night.

Parent works at night. If, due to a parent's

nighttime work schedule, a child lives for a

greater number of days, but not nights, with the

parent who works at night, that parent is treated

as the custodial parent. On a school day, the

child is treated as living at the primary resi-

dence registered with the school.

Example 1—Child lived with one parent

for a greater number of nights. You and your

child’s other parent are divorced. In 2023, your

child lived with you 210 nights and with the

other parent 155 nights. You are the custodial

parent.

Example 2—Child is away at camp. In

2023, your child lives with each parent for alter-

nate weeks. In the summer, your child spends 6

weeks at summer camp. During those 6 weeks,

your child is treated as living with you for 3

weeks and with your child’s other parent, your

ex-spouse, for 3 weeks because this is how

long the child would have lived with each parent

if the child had not attended summer camp.

Example 3—Child lived same number of

nights with each parent. Your child lived with

you 180 nights during the year and lived the

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Publication 17 (2023) Chapter 3 Dependents 29

same number of nights with the child’s other pa-

rent, your ex-spouse. Your AGI is $40,000. Your

ex-spouse's AGI is $25,000. You are treated as

your child's custodial parent because you have

the higher AGI.

Example 4—Child is at parent’s home

but with other parent. Your child normally

lives with you during the week and with the

child’s other parent, your ex-spouse, every other

weekend. You become ill and are hospitalized.

The other parent lives in your home with your

child for 10 consecutive days while you are in

the hospital. Your child is treated as living with

you during this 10-day period because your

child was living in your home.

Example 5—Child emancipated in May.

Your child turned 18 in May 2023 and became

emancipated under the law of the state where

your child lives. As a result, your child isn't con-

sidered in the custody of either parent for more

than half of the year. The special rule for chil-

dren of divorced or separated parents doesn't

apply.

Example 6—Child emancipated in Au-

gust. Your child lives with you from January 1,

2023, until May 31, 2023, and lives with the

child’s other parent, your ex-spouse, from June

1, 2023, through the end of the year. Your child

turns 18 and is emancipated under state law on

August 1, 2023. Because your child is treated

as not living with either parent beginning on Au-

gust 1, your child is treated as living with you

the greater number of nights in 2023. You are

the custodial parent.

Written declaration. The custodial parent

must use either Form 8332 or a similar state-

ment (containing the same information required

by the form) to make the written declaration to

release a claim to an exemption for a child to

the noncustodial parent. Although the exemp-

tion amount is zero for tax year 2023, this re-

lease allows the noncustodial parent to claim

the child tax credit, additional child tax credit,

and credit for other dependents, if applicable,

for the child. The noncustodial parent must at-

tach a copy of the form or statement to their tax

return.

The release can be for 1 year, for a number

of specified years (for example, alternate

years), or for all future years, as specified in the

declaration.

Post-1984 and pre-2009 divorce decree

or separation agreement. If the divorce de-

cree or separation agreement went into effect

after 1984 and before 2009, the noncustodial

parent may be able to attach certain pages from

the decree or agreement instead of Form 8332.

The decree or agreement must state all three of

the following.

1. The noncustodial parent can claim the

child as a dependent without regard to any

condition, such as payment of support.

2. The custodial parent won't claim the child

as a dependent for the year.

3. The years for which the noncustodial pa-

rent, rather than the custodial parent, can

claim the child as a dependent.

The noncustodial parent must attach all of

the following pages of the decree or agreement

to their tax return.

•

The cover page (write the other parent's

SSN on this page).

•

The pages that include all of the informa-

tion identified in items (1) through (3)

above.

•

The signature page with the other parent's

signature and the date of the agreement.

Post-2008 divorce decree or separation

agreement. The noncustodial parent can’t at-

tach pages from the decree or agreement in-

stead of Form 8332 if the decree or agreement

went into effect after 2008. The custodial parent

must sign either Form 8332 or a similar state-

ment whose only purpose is to release the cus-

todial parent's claim to an exemption for a child,

and the noncustodial parent must attach a copy

to their return. The form or statement must re-

lease the custodial parent's claim to the child

without any conditions. For example, the re-

lease must not depend on the noncustodial pa-

rent paying support.

The noncustodial parent must attach

the required information even if it was

filed with a return in an earlier year.

Revocation of release of claim to an ex-

emption. The custodial parent can revoke a re-

lease of claim to an exemption. For the revoca-

tion to be effective for 2023, the custodial parent

must have given (or made reasonable efforts to

give) written notice of the revocation to the non-

custodial parent in 2022 or earlier. The custo-

dial parent can use Part III of Form 8332 for this

purpose and must attach a copy of the revoca-

tion to their return for each tax year the custo-

dial parent claims the child as a dependent as a

result of the revocation.

Remarried parent. If you remarry, the sup-

port provided by your new spouse is treated as

provided by you.

Parents who never married. This special

rule for divorced or separated parents also ap-

plies to parents who never married and who

lived apart at all times during the last 6 months

of the year.

Support Test (To Be a Qualifying

Child)

To meet this test, the child can’t have provided

more than half of the child’s own support for the

year.

This test is different from the support test to

be a qualifying relative, which is described later.

However, to see what is or isn't support, see

Support Test (To Be a Qualifying Relative), later.

If you aren't sure whether a child provided more

than half of their own support, you may find

Worksheet 3-1 helpful.

Example. You provided $4,000 toward your

16-year-old child's support for the year and the

child provided $6,000. Your child provided more

than half their own support. The child isn't your

qualifying child.

Foster care payments and expenses. Pay-

ments you receive for the support of a foster

CAUTION

child from a child placement agency are consid-

ered support provided by the agency. Similarly,

payments you receive for the support of a foster

child from a state or county are considered sup-

port provided by the state or county.

If you aren't in the trade or business of pro-

viding foster care and your unreimbursed

out-of-pocket expenses in caring for a foster

child were mainly to benefit an organization

qualified to receive deductible charitable contri-

butions, the expenses are deductible as charita-

ble contributions but aren't considered support

you provided. For more information about the

deduction for charitable contributions, see Pub.

526. If your unreimbursed expenses aren't de-

ductible as charitable contributions, they may

qualify as support you provided.

If you are in the trade or business of provid-

ing foster care, your unreimbursed expenses

aren't considered support provided by you.

Example 1. A foster child lived with a mar-

ried couple, the Smiths, for the last 3 months of

the year. The Smiths cared for the foster child

because they wanted to adopt the child (al-

though the child had not been placed with them

for adoption). They didn't care for the foster

child as a trade or business or to benefit the

agency that placed the foster child in their

home. The Smiths' unreimbursed expenses

aren't deductible as charitable contributions but

are considered support they provided for the

foster child.

Example 2. You provided $3,000 toward

your 10-year-old foster child's support for the

year. The state government provided $4,000,

which is considered support provided by the

state, not by the child. See Support provided by

the state (welfare, food stamps, housing, etc.),

later. Your foster child didn't provide more than

half of their own support for the year.

Scholarships. A scholarship received by a

child who is a student isn't taken into account in

determining whether the child provided more

than half of their own support.

Joint Return Test (To Be a

Qualifying Child)

To meet this test, the child can’t file a joint return

for the year.

Exception. An exception to the joint return test

applies if your child and the child’s spouse file a

joint return only to claim a refund of income tax

withheld or estimated tax paid.

Example 1—Child files joint return. You

supported your 18-year-old child who lived with

you all year while your child’s spouse was in the

Armed Forces. Your child’s spouse earned

$35,000 for the year. The couple files a joint re-

turn so this child isn't your qualifying child.

Example 2—Child files joint return only

as a claim for refund of withheld tax. Your

18-year-old child and your child’s 17-year-old

spouse had $800 of wages from part-time jobs

and no other income. They lived with you all

year. Neither is required to file a tax return. They

don’t have a child. Taxes were taken out of their

pay so they filed a joint return only to get a re-

fund of the withheld taxes. The exception to the

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30 Chapter 3 Dependents Publication 17 (2023)

Worksheet for Determining SupportWorksheet 3-1.

Keep for Your Records

Funds Belonging to the Person You Supported

1. Enter the total funds belonging to the person you supported, including income received (taxable

and nontaxable) and amounts borrowed during the year, plus the amount in savings and other

accounts at the beginning of the year. Don’t include funds provided by the state; include those

amounts on line 23 instead ........................................................ 1.

2. Enter the amount on line 1 that was used for the person's support ........................

3. Enter the amount on line 1 that was used for other purposes .............................

4. Enter the total amount in the person's savings and other accounts at the end of the year ......

5. Add lines 2 through 4. (This amount should equal line 1.) ...............................

Expenses for Entire Household (where the person you supported lived)

6. Lodging (complete line 6a or 6b):

a. Enter the total rent paid .........................................................

6a.

b. Enter the fair rental value of the home. If the person you supported owned the home,

also include this amount in line 21 ................................................ 6b.

7. Enter the total food expenses ......................................................

8. Enter the total amount of utilities (heat, light, water, etc., not included in line 6a or 6b) ........

9. Enter the total amount of repairs (not included in line 6a or 6b) ...........................

10. Enter the total of other expenses. Don’t include expenses of maintaining the home, such as

mortgage interest, real estate taxes, and insurance .................................... 10.

11. Add lines 6a through 10. These are the total household expenses ........................

11.

12. Enter total number of persons who lived in the household ...............................

12.

Expenses for the Person You Supported

13. Divide line 11 by line 12. This is the person's share of the household expenses .............

13.

14. Enter the person's total clothing expenses ............................................

14.

15. Enter the person's total education expenses ..........................................

15.

16. Enter the person's total medical and dental expenses not paid for or reimbursed by

insurance ...................................................................... 16.

17. Enter the person's total travel and recreation expenses .................................

17.

18. Enter the total of the person's other expenses .........................................

18.

19. Add lines 13 through 18. This is the total cost of the person's support for the year ...........

19.

Did the Person Provide More Than Half of the Person’s Own Support?

20. Multiply line 19 by 50% (0.50) ......................................................

20.

21. Enter the amount from line 2, plus the amount from line 6b if the person you supported owned

the home. This is the amount the person provided for their own support .................... 21.

22. Is line 21 more than line 20?

No. You meet the support test for this person to be your qualifying child. If this person also meets the other tests to be a

qualifying child, stop here; don’t complete lines 23–26. Otherwise, go to line 23 and fill out the rest of the worksheet to

determine if this person is your qualifying relative.

Yes. You don’t meet the support test for this person to be either your qualifying child or your qualifying relative. Stop

here.

Did You Provide More Than Half?

23. Enter the amount others provided for the person's support. Include amounts provided by state,

local, and other welfare societies or agencies. Don’t include any amounts included on

line 1 .......................................................................... 23.

24. Add lines 21 and 23 ..............................................................

24.

25. Subtract line 24 from line 19. This is the amount you provided for the person's support .......

25.

26. Is line 25 more than line 20?

Yes. You meet the support test for this person to be your qualifying relative.

No. You don’t meet the support test for this person to be your qualifying relative. You can’t claim this person as a

dependent unless you can do so under a multiple support agreement, the support test for children of divorced or

separated parents (or parents who live apart), or the special rule for kidnapped children. See Multiple Support Agreement

or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart), or Kidnapped child under

Qualifying Relative.

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Publication 17 (2023) Chapter 3 Dependents 31

joint return test applies, so this child may be

your qualifying child if all the other tests are met.

Example 3—Child files joint return to

claim American opportunity credit. The

facts are the same as in Example 2, except no

taxes were taken out of either spouse’s pay.

However, they file a joint return to claim an

American opportunity credit of $124 and get a

refund of that amount. Because they filed a joint

return claiming the American opportunity credit,

they aren’t filing it only to get a refund of income

tax withheld or estimated tax paid. The excep-

tion to the joint return test doesn't apply, so this

child isn't your qualifying child.

Qualifying Child of More Than One

Person

If your qualifying child isn't a qualifying

child of anyone else, this topic doesn't

apply to you and you don’t need to

read about it. This is also true if your qualifying

child isn't a qualifying child of anyone else ex-

cept your spouse with whom you plan to file a

joint return.

If a child is treated as the qualifying

child of the noncustodial parent under

the rules for children of divorced or

separated parents (or parents who live apart)

described earlier, see Applying the tiebreaker

rules to divorced or separated parents (or pa-

rents who live apart), later.

Sometimes, a child meets the relationship,

age, residency, support, and joint return tests to

be a qualifying child of more than one person.

Although the child is a qualifying child of each of

these persons, generally only one person can

actually treat the child as a qualifying child to

take all of the following tax benefits (provided

the person is eligible for each benefit).

1. The child tax credit, credit for other de-

pendents, or additional child tax credit.

2. Head of household filing status.

3. The credit for child and dependent care

expenses.

4. The exclusion from income for dependent

care benefits.

5. The earned income credit.

The other person can’t take any of these

benefits based on this qualifying child. In other

words, you and the other person can’t agree to

divide these benefits between you.

Tiebreaker rules. To determine which person

can treat the child as a qualifying child to claim

these five tax benefits, the following tiebreaker

rules apply.

•

If only one of the persons is the child's pa-

rent, the child is treated as the qualifying

child of the parent.

•

If the parents file a joint return together and

can claim the child as a qualifying child,

the child is treated as the qualifying child of

the parents.

•

If the parents don’t file a joint return to-

gether but both parents claim the child as a

qualifying child, the IRS will treat the child

as the qualifying child of the parent with

TIP

CAUTION

whom the child lived for the longer period

of time during the year. If the child lived

with each parent for the same amount of

time, the IRS will treat the child as the qual-

ifying child of the parent who had the

higher AGI for the year.

•

If no parent can claim the child as a qualify-

ing child, the child is treated as the qualify-

ing child of the person who had the highest

AGI for the year.

•

If a parent can claim the child as a qualify-

ing child but no parent does so claim the

child, the child is treated as the qualifying

child of the person who had the highest

AGI for the year, but only if that person's

AGI is higher than the highest AGI of any of

the child's parents who can claim the child.

Subject to these tiebreaker rules, you and

the other person may be able to choose which

of you claims the child as a qualifying child.

You may be able to qualify for the

earned income credit under the rules

for taxpayers without a qualifying child

if you have a qualifying child for the earned in-

come credit who is claimed as a qualifying child

by another taxpayer. For more information, see

Pub. 596.

Example 1—Child lived with parent and

grandparent. You and your 3-year-old child J

lived with your parent all year. You are 25 years

old and unmarried, and your AGI is $9,000. Your

parent's AGI is $15,000. Your child’s other pa-

rent didn't live with you or your child. You

haven't signed Form 8332 (or a similar state-

ment).

J is a qualifying child of both you and your

parent because J meets the relationship, age,

residency, support, and joint return tests for

both you and your parent. However, only one of

you can claim J. J isn't a qualifying child of any-

one else, including J’s other parent. You agree

to let your parent claim J. This means your pa-

rent can claim J as a qualifying child for all of

the five tax benefits listed earlier, if your parent

qualifies for each of those benefits (and if you

don’t claim J as a qualifying child for any of

those tax benefits).

Example 2—Parent has higher AGI than

grandparent. The facts are the same as in Ex-

ample 1, except your AGI is $18,000. Because

your parent's AGI isn't higher than yours, your

parent can’t claim J. Only you can claim J.

Example 3—Two persons claim same

child. The facts are the same as in Example 1,

except you and your parent both claim J as a

qualifying child. In this case, you, as the child's

parent, will be the only one allowed to claim J

as a qualifying child. The IRS will disallow your

parent's claim to the five tax benefits listed ear-

lier based on J. However, your parent may qual-

ify for the earned income credit as a taxpayer

without a qualifying child.

Example 4—Qualifying children split be-

tween two persons. The facts are the same

as in Example 1, except you also have two other

young children who are qualifying children of

both you and your parent. Only one of you can

claim each child. However, if your parent's AGI

TIP

is higher than yours, you can allow your parent

to claim one or more of the children. For exam-

ple, if you claim one child, your parent can claim

the other two.

Example 5—Taxpayer who is a qualify-

ing child. The facts are the same as in Exam-

ple 1, except you are only 18 years old and

didn't provide more than half of your own sup-

port for the year. This means you are your pa-

rent's qualifying child. If your parent can claim

you as a dependent, then you can’t claim your

child as a dependent because of the Depend-

ent Taxpayer Test, explained earlier, unless your

parent files a return only to claim a refund of in-

come tax withheld or estimated tax paid.

Example 6—Separated parents. You,

your spouse, and your 10-year-old child all lived

in the United States for all of 2023. On August

1, 2023, your spouse moved out of the house-

hold. In August and September, your child lived

with you. For the rest of the year, your child lived

with your spouse, the child's other parent. Your

child is a qualifying child of both you and your

spouse because your child lived with each of

you for more than half the year and because

your child met the relationship, age, support,

and joint return tests for both of you. At the end

of the year, you and your spouse still weren't di-

vorced, legally separated, or separated under a

written separation agreement, so the rule for

children of divorced or separated parents (or

parents who live apart) doesn't apply.

You and your spouse will file separate re-

turns. Your spouse agrees to let you treat your

child as a qualifying child. This means, if your

spouse doesn't claim your child as a qualifying

child, you can claim this child as a qualifying

child for the child tax credit and exclusion for

dependent care benefits (if you qualify for each

of those tax benefits). However, you can’t claim

head of household filing status because you

and your spouse didn't live apart for the last 6

months of the year. As a result, your filing status

is married filing separately, so you can’t claim

the earned income credit because you don’t

meet the requirements for certain separated

spouses to claim the earned income credit

when they don’t file a joint return. You and your

spouse didn't live apart for the last 6 months of

2023, and while you did live apart at the end of

2023, you aren't legally separated under a writ-

ten separation agreement or decree of separate

maintenance. Therefore, you don't meet the re-

quirements to take the earned income credit as

a separated spouse who is not filing a joint re-

turn. You also can't take the credit for child and

dependent care expenses because your filing

status is married filing separately and you and

your spouse didn't live apart for the last 6

months of 2023.

Example 7—Separated parents claim

same child. The facts are the same as in Ex-

ample 6, except you and your spouse both

claim your child as a qualifying child. In this

case, only your spouse will be allowed to treat

your child as a qualifying child. This is because,

during 2023, the child lived with your spouse

longer than with you. If you claimed the child tax

credit for your child, the IRS will disallow your

claim to the child tax credit. If you don’t have an-

other qualifying child or dependent, the IRS will

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32 Chapter 3 Dependents Publication 17 (2023)

also disallow your claim to the exclusion for de-

pendent care benefits. In addition, because you

and your spouse didn't live apart for the last 6

months of the year, your spouse can’t claim

head of household filing status. As a result, your

spouse’s filing status is married filing separately.

Your spouse can’t claim the earned income

credit because your spouse doesn’t meet the

requirements to claim the earned income credit-

for certain separated spouses. You and your

spouse didn't live apart for the last 6 months of

2023, and, while you did live apart at the end of

2023, you aren't legally separated under a writ-

ten separation agreement or decree of separate

maintenance. Therefore, your spouse doesn't

meet the requirements to take the earned in-

come credit as a separated spouse who isn’t fil-

ing a joint return. Your spouse also can't take

the credit for child and dependent care expen-

ses because your spouse’s filing status is mar-

ried filing separately and you and your spouse

didn't live apart for the last 6 months of 2023.

Example 8—Unmarried parents. You,

your 5-year-old child, L, and L’s other parent

lived together in the United States all year. You

and L’s other parent aren't married. L is a quali-

fying child of both you and L’s other parent be-

cause L meets the relationship, age, residency,

support, and joint return tests for both you and

L’s other parent. Your AGI is $12,000 and L’s

other parent’s AGI is $14,000. L’s other parent

agrees to let you claim the child as a qualifying

child. This means you can claim L as a qualify-

ing child for the child tax credit, head of house-

hold filing status, the credit for child and de-

pendent care expenses, the exclusion for

dependent care benefits, and the earned in-

come credit, if you qualify for each of those tax

benefits (and if L’s other parent doesn't claim L

as a qualifying child for any of those tax bene-

fits).

Example 9—Unmarried parents claim

same child. The facts are the same as in Ex-

ample 8, except you and L’s other parent both

claim L as a qualifying child. In this case, only

L’s other parent will be allowed to treat L as a

qualifying child. This is because L’s other pa-

rent’s AGI, $14,000, is more than your AGI,

$12,000. If you claimed the child tax credit for L,

the IRS will disallow your claim to this credit. If

you don’t have another qualifying child or de-

pendent, the IRS will also disallow your claim to

head of household filing status, the credit for

child and dependent care expenses, and the

exclusion for dependent care benefits. How-

ever, you may be able to claim the earned in-

come credit as a taxpayer without a qualifying

child.

Example 10—Child didn't live with a pa-

rent. You and your sibling’s child, M, lived with

your parent all year. You are 25 years old, and

your AGI is $9,300. Your parent’s AGI is

$15,000. M’s parents file jointly, have an AGI of

less than $9,000, and don’t live with you or M.

M is a qualifying child of both you and your pa-

rent because M meets the relationship, age,

residency, support, and joint return tests for

both you and your parent. However, only your

parent can treat M as a qualifying child. This is

because your parent’s AGI, $15,000, is more

than your AGI, $9,300.

Applying the tiebreaker rules to divorced or

separated parents (or parents who live

apart). If a child is treated as the qualifying

child of the noncustodial parent under the rules

described earlier for children of divorced or sep-

arated parents (or parents who live apart), only

the noncustodial parent can claim the child as a

dependent and claim the child tax credit, addi-

tional child tax credit, or credit for other depend-

ents for the child. However, only the custodial

parent can claim the credit for child and de-

pendent care expenses or the exclusion for de-

pendent care benefits for the child. Also, gener-

ally, the noncustodial parent can't claim the

child as a qualifying child for head of household

filing status or the earned income credit. In-

stead, generally, the custodial parent, if eligible,

or other eligible person can claim the child as a

qualifying child for those two benefits. If the

child is the qualifying child of more than one

person for these benefits, then the tiebreaker

rules just explained determine whether the cus-

todial parent or another eligible person can treat

the child as a qualifying child.

Example 1. You and your 5-year-old child,

E, lived all year with your parent in the United

States. Your parent paid the entire cost of keep-

ing up the home. Your AGI is $10,000. Your pa-

rent's AGI is $25,000. E’s other parent lived in

the United States all year, but didn’t live with

you or E.

Under the rules explained earlier for children

of divorced or separated parents (or parents

who live apart), E is treated as the qualifying

child of E’s other parent, who can claim the

child tax credit for E. Because of this, you can’t

claim the child tax credit for E. However, those

rules don't allow E’s other parent to claim E as a

qualifying child for head of household filing sta-

tus, the credit for child and dependent care ex-

penses, the exclusion for dependent care bene-

fits, or the earned income credit.

You and your parent didn't have any child

care expenses or dependent care benefits, so

neither of you can claim the credit for child and

dependent care expenses or the exclusion for

dependent care benefits. But E is a qualifying

child of both you and your parent for head of

household filing status and the earned income

credit because E meets the relationship, age,

residency, support, and joint return tests for

both you and your parent. (The support test

doesn't apply for the earned income credit.)

However, you agree to let your parent claim E.

This means your parent can claim E for head of

household filing status and the earned income

credit if your parent qualifies for each and if you

don’t claim E as a qualifying child for the earned

income credit. (You can’t claim head of house-

hold filing status because your parent paid the

entire cost of keeping up the home.) You may

be able to claim the earned income credit as a

taxpayer without a qualifying child.

Example 2. The facts are the same as in

Example 1, except your AGI is $25,000 and

your parent's AGI is $21,000. Your parent can’t

claim E as a qualifying child for any purpose be-

cause your parent’s AGI isn't higher than yours.

Example 3. The facts are the same as in

Example 1, except you and your parent both

claim E as a qualifying child for the earned in-

come credit. Your parent also claims E as a

qualifying child for head of household filing sta-

tus. You, as the child's parent, will be the only

one allowed to claim E as a qualifying child for

the earned income credit. The IRS will disallow

your parent's claim to head of household filing

status unless your parent has another qualifying

child or dependent. Your parent can't claim the

earned income credit as a taxpayer without a

qualifying child because your parent’s AGI is

more than $17,640.

Qualifying Relative

Four tests must be met for a person to be your

qualifying relative. The four tests are:

1. Not a qualifying child test,

2. Member of household or relationship test,

3. Gross income test, and

4. Support test.

Age. Unlike a qualifying child, a qualifying rela-

tive can be any age. There is no age test for a

qualifying relative.

Kidnapped child. You may be able to treat a

child as your qualifying relative even if the child

has been kidnapped. See Pub. 501 for details.

Not a Qualifying Child Test

A child isn't your qualifying relative if the child is

your qualifying child or the qualifying child of

any other taxpayer.

Example 1. Your 22-year-old child, who is a

student, lives with you and meets all the tests to

be your qualifying child. This child isn't your

qualifying relative.

Example 2. Your 2-year-old child lives with

your parents and meets all the tests to be their

qualifying child. This child isn't your qualifying

relative.

Example 3. Your 30-year old child lives with

you. This child isn’t a qualifying child because

the age test isn’t met. This child may be your

qualifying relative if the gross income test and

the support test are met.

Example 4. Your 13-year-old grandchild

only lived with you for 5 months during the year.

Your grandchild isn’t your qualifying child be-

cause the residency test isn’t met. Your grand-

child may be your qualifying relative if the gross

income test and the support test are met.

Child of person not required to file a return.

A child isn't the qualifying child of any other tax-

payer and so may qualify as your qualifying rela-

tive if the child's parent (or other person for

whom the child is defined as a qualifying child)

isn't required to file an income tax return and ei-

ther:

•

Doesn't file an income tax return, or

•

Files a return only to get a refund of in-

come tax withheld or estimated tax paid.

Example 1—Return not required. You

support an unrelated friend and your friend’s

3-year-old child, who lived with you all year in

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Publication 17 (2023) Chapter 3 Dependents 33

your home. Your friend has no gross income,

isn't required to file a 2023 tax return, and

doesn't file a 2023 tax return. Both your friend

and your friend’s child are your qualifying rela-

tives if the support test is met.

Example 2—Return filed to claim refund.

The facts are the same as in Example 1, except

your friend had wages of $1,500 during the year

and had income tax withheld from your friend’s

wages. Your friend files a return only to get a re-

fund of the income tax withheld and doesn't

claim the earned income credit or any other tax

credits or deductions. Both your friend and your

friend’s child are your qualifying relatives if the

support test is met.

Example 3—Earned income credit

claimed. The facts are the same as in Exam-

ple 2, except your friend had wages of $8,000

during the year and claimed the earned income

credit. Your friend's child is the qualifying child

of another taxpayer (your friend), so you can’t

claim your friend's child as your qualifying rela-

tive. Also, you can’t claim your friend as your

qualifying relative because of the gross income

test, explained later.

Child in Canada or Mexico. You may be able

to claim your child as a dependent even if the

child lives in Canada or Mexico. If the child

doesn't live with you, the child doesn't meet the

residency test to be your qualifying child. How-

ever, the child may still be your qualifying rela-

tive. If the persons the child does live with aren't

U.S. citizens and have no U.S. gross income,

those persons aren't “taxpayers,” so the child

isn't the qualifying child of any other taxpayer. If

the child isn't the qualifying child of any other

taxpayer, the child is your qualifying relative as

long as the gross income test and the support

test are met.

You can’t claim as a dependent a child who

lives in a foreign country other than Canada or

Mexico, unless the child is a U.S. citizen, U.S.

resident alien, or U.S. national. There is an ex-

ception for certain adopted children who lived

with you all year. See Citizen or Resident Test,

earlier.

Example. You provide all the support of

your children, ages 6, 8, and 12, who live in

Mexico with your parent and have no income.

You are single and live in the United States.

Your parent isn't a U.S. citizen and has no U.S.

income, so your parent isn't a “taxpayer.” Your

children aren't your qualifying children because

they don’t meet the residency test. But since

they aren't the qualifying children of any other

taxpayer, they may be your qualifying relatives

and you may be permitted to claim them as de-

pendents. You may also be able to claim your

parent as a dependent if the gross income and

support tests are met.

Member of Household or

Relationship Test

To meet this test, a person must either:

1. Live with you all year as a member of your

household, or

2. Be related to you in one of the ways listed

under Relatives who don’t have to live with

you below.

If at any time during the year the person was

your spouse, that person can’t be your qualify-

ing relative.

Relatives who don’t have to live with you. A

person related to you in any of the following

ways doesn't have to live with you all year as a

member of your household to meet this test.

•

Your child, stepchild, or foster child, or a

descendant of any of them (for example,

your grandchild). (A legally adopted child is

considered your child.)

•

Your brother, sister, half brother, half sister,

stepbrother, or stepsister.

•

Your father, mother, grandparent, or other

direct ancestor, but not foster parent.

•

Your stepfather or stepmother.

•

A son or daughter of your brother or sister.

•

A son or daughter of your half brother or

half sister.

•

A brother or sister of your father or mother.

•

Your son-in-law, daughter-in-law, fa-

ther-in-law, mother-in-law, brother-in-law,

or sister-in-law.

Any of these relationships that were established

by marriage aren't ended by death or divorce.

Example. In 2017, you and your spouse

began supporting your spouse’s unmarried pa-

rent, G. Your spouse died in 2022. Despite your

spouse’s death, G continues to meet this test,

even if G doesn’t live with you. You can claim G

as a dependent if all other tests are met, includ-

ing the gross income and support tests.

Foster child. A foster child is an individual

who is placed with you by an authorized place-

ment agency or by judgment, decree, or other

order of any court of competent jurisdiction.

Joint return. If you file a joint return, the per-

son can be related to either you or your spouse.

Also, the person doesn't need to be related to

the spouse who provides support.

For example, you provide more than half the

support for your spouse’s stepparent. Your

spouse’s stepparent may be your qualifying rel-

ative even if the stepparent doesn't live with

you. However, if you and your spouse file sepa-

rate returns, your spouse's stepparent can be

your qualifying relative only if the stepparent

lives with you all year as a member of your

household.

Temporary absences. A person is considered

to live with you as a member of your household

during periods of time when one of you, or both,

is temporarily absent due to special circumstan-

ces such as:

•

Illness,

•

Education,

•

Business,

•

Vacation,

•

Military service, or

•

Detention in a juvenile facility.

If the person is placed in a nursing home for

an indefinite period of time to receive constant

medical care, the absence may be considered

temporary.

Death or birth. A person who died during the

year, but lived with you as a member of your

household until death, will meet this test. The

same is true for a child who was born during the

year and lived with you as a member of your

household for the rest of the year. The test is

also met if a child lived with you as a member of

your household except for any required hospital

stay following birth.

If your dependent died during the year and

you otherwise qualify to claim that person as a

dependent, you can still claim that person as a

dependent.

Example. Your parent, who met the tests to

be your qualifying relative, died on January 15.

You can claim your parent as a dependent on

your return.

Local law violated. A person doesn't meet

this test if at any time during the year the rela-

tionship between you and that person violates

local law.

Example. Your significant other, T, lived

with you as a member of your household all

year. However, your relationship with T violated

the laws of the state where you live because T

was married to someone else. Therefore, T

doesn't meet this test and you can’t claim T as a

dependent.

Adopted child. An adopted child is always

treated as your own child. The term “adopted

child” includes a child who was lawfully placed

with you for legal adoption.

Cousin. Your cousin must live with you all year

as a member of your household to meet this

test. A cousin is a descendant of a brother or

sister of your father or mother.

Gross Income Test

To meet this test, a person's gross income for

the year must be less than $4,700.

Gross income defined. Gross income is all in-

come in the form of money, property, and serv-

ices that isn't exempt from tax.

In a manufacturing, merchandising, or min-

ing business, gross income is the total net sales

minus the cost of goods sold, plus any miscella-

neous income from the business.

Gross receipts from rental property are

gross income. Don’t deduct taxes, repairs, or

other expenses to determine the gross income

from rental property.

Gross income includes a partner's share of

the gross (not a share of the net) partnership in-

come.

Gross income also includes all taxable un-

employment compensation, taxable social se-

curity benefits, and certain amounts received as

scholarship and fellowship grants. Scholarships

received by degree candidates and used for tui-

tion, fees, supplies, books, and equipment re-

quired for particular courses generally aren't in-

cluded in gross income. For more information

about scholarships, see chapter 8.

Disabled dependent working at sheltered

workshop. For purposes of the gross income

test, the gross income of an individual who is

permanently and totally disabled at any time

during the year doesn't include income for

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34 Chapter 3 Dependents Publication 17 (2023)

services the individual performs at a sheltered

workshop. The availability of medical care at the

workshop must be the main reason for the indi-

vidual's presence there. Also, the income must

come solely from activities at the workshop that

are incident to this medical care.

A “sheltered workshop” is a school that:

•

Provides special instruction or training de-

signed to alleviate the disability of the indi-

vidual; and

•

Is operated by certain tax-exempt organi-

zations, or by a state, a U.S. territory, a po-

litical subdivision of a state or territory, the

United States, or the District of Columbia.

Permanently and totally disabled has the

same meaning here as under Qualifying Child,

earlier.

Support Test (To Be a Qualifying

Relative)

To meet this test, you must generally provide

more than half of a person's total support during

the calendar year.

However, if two or more persons provide

support, but no one person provides more than

half of a person's total support, see Multiple

Support Agreement, later.

How to determine if support test is met.

You figure whether you have provided more

than half of a person's total support by compar-

ing the amount you contributed to that person's

support with the entire amount of support that

person received from all sources. This includes

support the person provided from the person’s

own funds.

You may find Worksheet 3-1 helpful in figur-

ing whether you provided more than half of a

person's support.

Person's own funds not used for support. A

person's own funds aren't support unless they

are actually spent for support.

Example. Your parent received $2,400 in

social security benefits and $300 in interest,

paid $2,000 for lodging and $400 for recreation,

and put $300 in a savings account.

Even though your parent received a total of

$2,700 ($2,400 + $300), your parent spent only

$2,400 ($2,000 + $400) for your parent’s own

support. If you spent more than $2,400 for your

parent’s support and no other support was re-

ceived, you have provided more than half of

your parent’s support.

Child's wages used for own support. You

can’t include in your contribution to your child's

support any support paid for by the child with

the child's own wages, even if you paid the wa-

ges.

Year support is provided. The year you pro-

vide the support is the year you pay for it, even if

you do so with borrowed money that you repay

in a later year.

If you use a fiscal year to report your income,

you must provide more than half of the depend-

ent's support for the calendar year in which your

fiscal year begins.

Armed Forces dependency allotments. The

part of the allotment contributed by the govern-

ment and the part taken out of your military pay

are both considered provided by you in figuring

whether you provide more than half of the sup-

port. If your allotment is used to support per-

sons other than those you name, you can claim

them as dependents if they otherwise qualify.

Example. You are in the Armed Forces. You

authorize an allotment for your surviving parent

that your surviving parent uses to support them-

selves and their sibling. If the allotment provides

more than half of each person's support, you

can claim each of them as a dependent, if they

otherwise qualify, even though you authorize the

allotment only for your surviving parent.

Tax-exempt military quarters allowances.

These allowances are treated the same way as

dependency allotments in figuring support. The

allotment of pay and the tax-exempt basic al-

lowance for quarters are both considered as

provided by you for support.

Tax-exempt income. In figuring a person's to-

tal support, include tax-exempt income, sav-

ings, and borrowed amounts used to support

that person. Tax-exempt income includes cer-

tain social security benefits, welfare benefits,

nontaxable life insurance proceeds, Armed

Forces family allotments, nontaxable pensions,

and tax-exempt interest.

Example 1. You provide $4,000 toward

your parent’s support during the year. Your pa-

rent has earned income of $600, nontaxable so-

cial security benefits of $4,800, and tax-exempt

interest of $200, all of which your parent uses

for self-support. You can’t claim your parent as

a dependent because the $4,000 you provide

isn’t more than half of your parent’s total support

of $9,600 ($4,000 + $600 +$4,800 + $200).

Example 2. K, your sibling’s child, takes out

a student loan of $2,500 and uses it to pay col-

lege tuition. K is personally responsible for the

loan. You provide $2,000 toward K’s total sup-

port. You can’t claim K as a dependent because

you provide less than half of K’s support.

Social security benefits. If a married cou-

ple receives benefits that are paid by one check

made out to both of them, half of the total paid

is considered to be for the support of each

spouse, unless they can show otherwise.

If a child receives social security benefits

and uses them toward their own support, the

benefits are considered as provided by the

child.

Support provided by the state (welfare,

food stamps, housing, etc.). Benefits provi-

ded by the state to a needy person are gener-

ally considered support provided by the state.

However, payments based on the needs of the

recipient won't be considered as used entirely

for that person's support if it is shown that part

of the payments weren't used for that purpose.

Foster care. Payments you receive for the sup-

port of a foster child from a child placement

agency are considered support provided by the

agency. See Foster care payments and expen-

ses, earlier.

Home for the aged. If you make a lump-sum

advance payment to a home for the aged to

take care of your relative for life and the pay-

ment is based on that person's life expectancy,

the amount of support you provide each year is

the lump-sum payment divided by the relative's

life expectancy. The amount of support you pro-

vide also includes any other amounts you provi-

ded during the year.

Total Support

To figure if you provided more than half of a per-

son's support, you must first determine the total

support provided for that person. Total support

includes amounts spent to provide food, lodg-

ing, clothing, education, medical and dental

care, recreation, transportation, and similar ne-

cessities.

Generally, the amount of an item of support

is the amount of the expense incurred in provid-

ing that item. For lodging, the amount of support

is the fair rental value of the lodging.

Expenses not directly related to any one

member of a household, such as the cost of

food for the household, must be divided among

the members of the household.

Example 1. G Brown, parent of M Miller,

lives with F and M Miller and their two children.

G gets social security benefits of $2,400, which

G spends for clothing, transportation, and recre-

ation. G has no other income. F and M's total

food expense for the household is $5,200. They

pay G's medical and drug expenses of $1,200.

The fair rental value of the lodging provided for

G is $1,800 a year, based on the cost of similar

rooming facilities. Figure G's total support as

follows.

Fair rental value of lodging

......... $ 1,800

Clothing, transportation, and

recreation ................. 2,400

Medical expenses ............. 1,200

Share of food (1/5 of $5,200) ....... 1,040

Total support ............... $6,440

The support F and M provide, $4,040

($1,800 lodging + $1,200 medical expenses +

$1,040 food), is more than half of G's $6,440 to-

tal support.

Example 2. Your parents, A and B, live with

you, your spouse, and your two children in a

house you own. The fair rental value of your pa-

rents' share of the lodging is $2,000 a year

($1,000 each), which includes furnishings and

utilities. A receives a nontaxable pension of

$4,200, which A spends equally between A and

B for items of support such as clothing, trans-

portation, and recreation. Your total food ex-

pense for the household is $6,000. Your heat

and utility bills amount to $1,200. B has hospital

and medical expenses of $600, which you pay

during the year. Figure your parents' total sup-

port as follows.

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Publication 17 (2023) Chapter 3 Dependents 35

Support provided A B

Fair rental value of lodging ... $1,000 $1,000

Pension spent for their

support ............ 2,100 2,100

Share of food (1/6 of

$6,000) ............ 1,000 1,000

Medical expenses for B ..... 600

Parents' total support .... $4,100 $4,700

You must apply the support test separately

to each parent. You provide $2,000 ($1,000

lodging + $1,000 food) of A’s total support of

$4,100—less than half. You provide $2,600 to B

($1,000 lodging + $1,000 food + $600 medi-

cal)—more than half of B’s total support of

$4,700. You meet the support test for B, but not

A. Heat and utility costs are included in the fair

rental value of the lodging, so these aren't con-

sidered separately.

Lodging. If you provide a person with lodging,

you are considered to provide support equal to

the fair rental value of the room, apartment,

house, or other shelter in which the person

lives. Fair rental value includes a reasonable al-

lowance for the use of furniture and appliances,

and for heat and other utilities that are provided.

Fair rental value defined. Fair rental value

is the amount you could reasonably expect to

receive from a stranger for the same kind of

lodging. It is used instead of actual expenses

such as taxes, interest, depreciation, paint, in-

surance, utilities, and the cost of furniture and

appliances. In some cases, fair rental value may

be equal to the rent paid.

If you provide the total lodging, the amount

of support you provide is the fair rental value of

the room the person uses, or a share of the fair

rental value of the entire dwelling if the person

has use of your entire home. If you don’t provide

the total lodging, the total fair rental value must

be divided depending on how much of the total

lodging you provide. If you provide only a part

and the person supplies the rest, the fair rental

value must be divided between both of you ac-

cording to the amount each provides.

Example. Your parents live rent free in a

house you own. It has a fair rental value of

$5,400 a year furnished, which includes a fair

rental value of $3,600 for the house and $1,800

for the furniture. This doesn't include heat and

utilities. The house is completely furnished with

furniture belonging to your parents. You pay

$600 for their utility bills. Utilities usually aren't

included in rent for houses in the area where

your parents live. Therefore, you consider the

total fair rental value of the lodging to be $6,000

($3,600 fair rental value of the unfurnished

house + $1,800 allowance for the furnishings

provided by your parents + $600 cost of utilities)

of which you are considered to provide $4,200

($3,600 + $600).

Person living in their own home. The total

fair rental value of a person's home that the per-

son owns is considered support contributed by

that person.

Living with someone rent free. If you live

with a person rent free in that person’s home,

you must reduce the amount you provide for

support of that person by the fair rental value of

lodging the person provides you.

Property. Property provided as support is

measured by its fair market value. Fair market

value is the price that property would sell for on

the open market. It is the price that would be

agreed upon between a willing buyer and a will-

ing seller, with neither being required to act, and

both having reasonable knowledge of the rele-

vant facts.

Capital expenses. Capital items, such as

furniture, appliances, and cars, bought for a per-

son during the year can be included in total sup-

port under certain circumstances.

The following examples show when a capital

item is or isn't support.

Example 1. You buy a $200 power lawn

mower for your 13-year-old child. The child is

given the duty of keeping the lawn trimmed. Be-

cause the lawn mower benefits all members of

the household, don’t include the cost of the

lawn mower in the support of your child.

Example 2. You buy a $150 television set

as a birthday present for your 12-year-old child.

The television set is placed in your child's bed-

room. You can include the cost of the television

set in the support of your child.

Example 3. You pay $5,000 for a car and

17-year-old child use the car equally. Because

you own the car and don’t give it to your child

but merely let your child use it, don’t include the

cost of the car in your child’s total support. How-

ever, you can include in your child's support

your out-of-pocket expenses of operating the

car for your child’s benefit.

Example 4. Your 17-year-old child, using

personal funds, buys a car for $4,500. You pro-

vide the rest of your child's support, $4,000. Be-

cause the car is bought and owned by your

child, the car's fair market value ($4,500) must

be included in your child’s support. Your child

has provided more than half of their own total

support of $8,500 ($4,500 + $4,000), so this

child isn't your qualifying child. You didn't pro-

vide more than half of this child’s total support,

so this child isn't your qualifying relative. You

can’t claim this child as a dependent.

Medical insurance premiums. Medical insur-

ance premiums you pay, including premiums for

supplementary Medicare coverage, are inclu-

ded in the support you provide.

Medical insurance benefits. Medical insur-

ance benefits, including basic and supplemen-

tary Medicare benefits, aren't part of support.

Tuition payments and allowances under the

GI Bill. Amounts veterans receive under the GI

Bill for tuition payments and allowances while

they attend school are included in total support.

Example. During the year, your child re-

ceives $2,200 from the government under the

GI Bill. Your child uses this amount for your

child’s education. You provide the rest of your

child’s support, $2,000. Because GI benefits

are included in total support, your child’s total

support is $4,200 ($2,200 + $2,000). You

haven't provided more than half of your child’s

support.

Childcare expenses. If you pay someone to

provide child or dependent care, you can in-

clude these payments in the amount you provi-

ded for the support of your child or disabled de-

pendent, even if you claim a credit for the

payments. For information on the credit, see

Pub. 503.

Other support items. Other items may be

considered as support depending on the facts

in each case.

Don’t Include in Total Support

The following items aren't included in total sup-

port.

1. Federal, state, and local income taxes

paid by persons from their own income.

2. Social security and Medicare taxes paid

by persons from their own income.

3. Life insurance premiums.

4. Funeral expenses.

5. Scholarships received by your child if your

child is a student.

6. Survivors' and Dependents' Educational

Assistance payments used for the support

of the child who receives them.

Multiple Support Agreement

Sometimes no one provides more than half of

the support of a person. Instead, two or more

persons, each of whom would be able to claim

the person as a dependent but for the support

test, together provide more than half of the per-

son's support.

When this happens, you can agree that any

one of you who individually provides more than

10% of the person's support, but only one, can

claim the person as a dependent. Each of the

others must sign a statement agreeing not to

claim the person as a dependent for that year.

The person who claims the person as a de-

pendent must keep these signed statements for

their own records. A multiple support declara-

tion identifying each of the others who agreed

not to claim the person as a dependent must be

attached to the return of the person claiming the

person as a dependent. Form 2120 can be

used for this purpose.

You can claim someone as a dependent un-

der a multiple support agreement for someone

related to you or for someone who lived with

you all year as a member of your household.

Example 1. You, and your siblings, S, B,

and D, provide the entire support of your parent

for the year. You provide 45%, S provides 35%,

and B and D each provide 10%. Either you or S

can claim your parent as a dependent; the one

who doesn’t must sign a statement agreeing not

to claim your parent as a dependent. The one

who claims your parent as a dependent must

attach Form 2120, or a similar declaration, to

their return and must keep the statement signed

by the other for their records. Because neither B

nor D provides more than 10% of the support,

neither can claim your parent as a dependent

and neither has to sign a statement.

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36 Chapter 3 Dependents Publication 17 (2023)

Example 2. You and your sibling each pro-

vide 20% of your parent's support for the year.

The remaining 60% of your parent’s support is

provided equally by two persons who are unre-

lated. Your parent doesn't live with them. Be-

cause more than half of your parent’s support is

provided by persons who can’t claim your pa-

rent as a dependent, no one can claim your pa-

rent as a dependent.

Support Test for Children of

Divorced or Separated Parents (or

Parents Who Live Apart)

In most cases, a child of divorced or separated

parents (or parents who live apart) will be a

qualifying child of one of the parents. See Chil-

dren of divorced or separated parents (or pa-

rents who live apart) under Qualifying Child,

earlier. However, if the child doesn't meet the re-

quirements to be a qualifying child of either pa-

rent, the child may be a qualifying relative of

one of the parents. If you think this might apply

to you, see Pub. 501.

Social Security

Numbers (SSNs)

for Dependents

You must show the SSN of any dependent you

list in the Dependents section of your Form

1040 or 1040-SR.

If you don’t show the dependent's SSN

when required, or if you show an incor-

rect SSN, certain tax benefits may be

disallowed.

No SSN. If a person whom you expect to claim

as a dependent on your return doesn't have an

SSN, either you or that person should apply for

an SSN as soon as possible by filing Form

SS-5, Application for a Social Security Card,

with the Social Security Administration (SSA).

You can get Form SS-5 online at SSA.gov/

forms/ss-5.pdf or at your local SSA office.

It usually takes about 2 weeks to get an SSN

once the SSA has all the information it needs. If

you don’t have a required SSN by the filing due

date, you can file Form 4868 for an extension of

time to file.

Born and died in 2023. If your child was

born and died in 2023, and you don’t have an

SSN for the child, you may attach a copy of the

child's birth certificate, death certificate, or hos-

pital records instead. The document must show

the child was born alive. If you do this, enter

“DIED” in column (2) of the Dependents section

of your Form 1040 or 1040-SR.

Alien or adoptee with no SSN. If your de-

pendent doesn't have and can’t get an SSN,

you must show the Individual Taxpayer Identifi-

cation Number (ITIN) or adoption taxpayer iden-

tification number (ATIN) instead of an SSN.

Taxpayer identification numbers for ali-

ens. If your dependent is a resident or nonresi-

dent alien who doesn't have and isn't eligible to

get an SSN, your dependent must apply for an

ITIN. For details on how to apply, see Form

W-7, Application for IRS Individual Taxpayer

Identification Number.

CAUTION

Taxpayer identification numbers for

adoptees. If you have a child who was placed

with you by an authorized placement agency,

you may be able to claim the child as a depend-

ent. However, if you can’t get an SSN or an ITIN

for the child, you must get an ATIN for the child

from the IRS. See Form W-7A, Application for

Taxpayer Identification Number for Pending U.S.

Adoptions, for details.

Tax Withholding

and Estimated

Tax

What's New for 2024

Tax law changes for 2024. When you figure

how much income tax you want withheld from

your pay and when you figure your estimated

tax, consider tax law changes effective in 2024.

For more information, see Pub. 505, Tax With-

holding and Estimated Tax.

Reminders

Estimated tax safe harbor for higher in-

come taxpayers. If your 2023 adjusted gross

income was more than $150,000 ($75,000 if

you are married filing a separate return), you

must pay the smaller of 90% of your expected

tax for 2024 or 110% of the tax shown on your

2023 return to avoid an estimated tax penalty.

Introduction

This chapter discusses how to pay your tax as

you earn or receive income during the year. In

general, the federal income tax is a

pay-as-you-go tax. There are two ways to pay

as you go.

•

Withholding. If you are an employee, your

employer probably withholds income tax

from your pay. Tax may also be withheld

from certain other income, such as pen-

sions, bonuses, commissions, and gam-

bling winnings. The amount withheld is

paid to the IRS in your name.

•

Estimated tax. If you don't pay your tax

through withholding, or don't pay enough

tax that way, you may have to pay estima-

ted tax. People who are in business for

themselves will generally have to pay their

tax this way. Also, you may have to pay es-

timated tax if you receive income such as

dividends, interest, capital gains, rent, and

royalties. Estimated tax is used to pay not

only income tax, but self-employment tax

and alternative minimum tax as well.

This chapter explains these methods. In ad-

dition, it also explains the following.

•

Credit for withholding and estimated

tax. When you file your 2023 income tax

return, take credit for all the income tax

withheld from your salary, wages, pen-

sions, etc., and for the estimated tax you

paid for 2023. Also take credit for any ex-

cess social security or railroad retirement

tax withheld. See Pub. 505.

•

Underpayment penalty. If you didn't pay

enough tax during the year, either through

withholding or by making estimated tax

payments, you may have to pay a penalty.

In most cases, the IRS can figure this pen-

alty for you. See Underpayment Penalty for

2023 at the end of this chapter.

Useful Items

You may want to see:

Publication

505 Tax Withholding and Estimated Tax

Form (and Instructions)

W-4 Employee's Withholding Certificate

W-4P Withholding Certificate for Periodic

Pension or Annuity Payments

W-4S Request for Federal Income Tax

Withholding From Sick Pay

W-4V Voluntary Withholding Request

1040-ES Estimated Tax for Individuals

2210 Underpayment of Estimated Tax by

Individuals, Estates, and Trusts

2210-F Underpayment of Estimated Tax

by Farmers and Fishermen

Tax Withholding

for 2024

This section discusses income tax withholding

on:

•

Salaries and wages,

•

Tips,

•

Taxable fringe benefits,

•

Sick pay,

•

Pensions and annuities,

•

Gambling winnings,

•

Unemployment compensation, and

•

Certain federal payments.

This section explains the rules for withholding

tax from each of these types of income.

This section also covers backup withholding

on interest, dividends, and other payments.

Salaries and Wages

Income tax is withheld from the pay of most em-

ployees. Your pay includes your regular pay, bo-

nuses, commissions, and vacation allowances.

505

W-4

W-4P

W-4S

W-4V

1040-ES

2210

2210-F

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Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 37

It also includes reimbursements and other ex-

pense allowances paid under a nonaccountable

plan. See Supplemental Wages, later, for more

information about reimbursements and allowan-

ces paid under a nonaccountable plan.

If your income is low enough that you won't

have to pay income tax for the year, you may be

exempt from withholding. This is explained un-

der Exemption From Withholding, later.

You can ask your employer to withhold in-

come tax from noncash wages and other wages

not subject to withholding. If your employer

doesn't agree to withhold tax, or if not enough is

withheld, you may have to pay estimated tax, as

discussed later under Estimated Tax for 2024.

Military retirees. Military retirement pay is

treated in the same manner as regular pay for

income tax withholding purposes, even though

it is treated as a pension or annuity for other tax

purposes.

Household workers. If you are a household

worker, you can ask your employer to withhold

income tax from your pay. A household worker

is an employee who performs household work

in a private home, local college club, or local fra-

ternity or sorority chapter.

Tax is withheld only if you want it withheld

and your employer agrees to withhold it. If you

don't have enough income tax withheld, you

may have to pay estimated tax, as discussed

later under Estimated Tax for 2024.

Farmworkers. Generally, income tax is with-

held from your cash wages for work on a farm

unless your employer does both of these:

•

Pays you cash wages of less than $150

during the year, and

•

Has expenditures for agricultural labor to-

taling less than $2,500 during the year.

Differential wage payments. When employ-

ees are on leave from employment for military

duty, some employers make up the difference

between the military pay and civilian pay. Pay-

ments to an employee who is on active duty for

a period of more than 30 days will be subject to

income tax withholding, but not subject to social

security, Medicare, or federal unemployment

(FUTA) tax withholding. The wages and with-

holding will be reported on Form W-2, Wage

and Tax Statement.

Determining Amount of Tax

Withheld Using Form W-4

The amount of income tax your employer with-

holds from your regular pay depends on two

things.

•

The amount you earn in each payroll pe-

riod.

•

The information you give your employer on

Form W-4.

Form W-4 includes steps to help you figure

your withholding. Complete Steps 2 through 4

only if they apply to you.

•

Step 1. Enter your personal information in-

cluding your filing status.

•

Step 2. Complete this step if you have

more than one job at the same time or are

married filing jointly and you and your

spouse both work.

•

Step 3. Complete this step if you claim de-

pendents and other credits.

•

Step 4. Complete this optional step to

make other adjustments.

*Other income

*Deductions

*Extra withholding

New Job

When you start a new job, you must fill out Form

W-4 and give it to your employer. Your employer

should have copies of the form. If you need to

change the information later, you must fill out a

new form.

If you work only part of the year (for exam-

ple, you start working after the beginning of the

year), too much tax may be withheld. You may

be able to avoid overwithholding if your em-

ployer agrees to use the part-year method. See

Part-Year Method in chapter 1 of Pub. 505 for

more information.

Employee also receiving pension income.

If you receive pension or annuity income and

begin a new job, you will need to file Form W-4

with your new employer. However, you can

choose to split your withholding between your

pension and job in any manner.

Changing Your Withholding

During the year, changes may occur to your

marital status, adjustments, deductions, or

credits you expect to claim on your tax return.

When this happens, you may need to give your

employer a new Form W-4 to change your with-

holding status.

If a change in personal circumstances re-

duces the amount of withholding you are enti-

tled to claim, you are required to give your em-

ployer a new Form W-4 within 10 days after the

change occurs.

Changing your withholding for 2025. If

events in 2024 will change the amount of with-

holding you should claim for 2025, you must

give your employer a new Form W-4 by Decem-

ber 1, 2024. If the event occurs in December

2024, submit a new Form W-4 within 10 days.

Checking Your Withholding

After you have given your employer a Form

W-4, you can check to see whether the amount

of tax withheld from your pay is too little or too

much. If too much or too little tax is being with-

held, you should give your employer a new

Form W-4 to change your withholding. You

should try to have your withholding match your

actual tax liability. If not enough tax is withheld,

you will owe tax at the end of the year and may

have to pay interest and a penalty. If too much

tax is withheld, you will lose the use of that

money until you get your refund. Always check

your withholding if there are personal or finan-

cial changes in your life or changes in the law

that might change your tax liability.

Note. You can’t give your employer a pay-

ment to cover withholding on salaries and wa-

ges for past pay periods or a payment for esti-

mated tax.

Completing Form W-4 and

Worksheets

Form W-4 has worksheets to help you figure the

correct amount of withholding you can claim.

The worksheets are for your own records. Don't

give them to your employer.

Multiple Jobs Worksheet. If you have income

from more than one job at the same time, or are

married filing jointly and you and your spouse

both work, complete the Multiple Jobs Work-

sheet on the Form W-4.

If you and your spouse expect to file sepa-

rate returns, figure your withholding using sepa-

rate worksheets based on your own individual

income, adjustments, deductions, and credits.

Deductions Worksheet. Use the Deductions

Worksheet on Form W-4 if you plan to itemize

deductions or claim certain adjustments to in-

come and you want to reduce your withholding.

Also complete this worksheet when you have

changes to these items to see if you need to

change your withholding.

Getting the Right Amount of Tax

Withheld

In most situations, the tax withheld from your

pay will be close to the tax you figure on your re-

turn if you follow these two rules.

•

You accurately complete all the Form W-4

worksheets that apply to you.

•

You give your employer a new Form W-4

when changes occur.

But because the worksheets and withhold-

ing methods don't account for all possible situa-

tions, you may not be getting the right amount

withheld. This is most likely to happen in the fol-

lowing situations.

•

You are married and both you and your

spouse work.

•

You have more than one job at a time.

•

You have nonwage income, such as inter-

est, dividends, alimony, unemployment

compensation, or self-employment in-

come.

•

You will owe additional amounts with your

return, such as self-employment tax.

•

Your withholding is based on obsolete

Form W-4 information for a substantial part

of the year.

•

You work only part of the year.

•

You change the amount of your withholding

during the year.

•

You are subject to Additional Medicare Tax

or Net Investment Income Tax (NIIT). If you

anticipate liability for Additional Medicare

Tax or NIIT, you may request that your em-

ployer withhold an additional amount of in-

come tax withholding on Form W-4.

Cumulative wage method. If you change the

amount of your withholding during the year, too

much or too little tax may have been withheld

for the period before you made the change. You

may be able to compensate for this if your em-

ployer agrees to use the cumulative wage with-

holding method for the rest of the year. You

must ask your employer in writing to use this

method.

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38 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

To be eligible, you must have been paid for

the same kind of payroll period (weekly, bi-

weekly, etc.) since the beginning of the year.

Publication 505

To make sure you are getting the right amount

of tax withheld, get Pub. 505. It will help you

compare the total tax to be withheld during the

year with the tax you can expect to figure on

your return. It will also help you determine how

much, if any, additional withholding is needed

each payday to avoid owing tax when you file

your return. If you don't have enough tax with-

held, you may have to pay estimated tax, as ex-

plained under Estimated Tax for 2024, later.

You can use the Tax Withholding Esti-

mator at IRS.gov/W4App, instead of

Pub. 505 or the worksheets included

with Form W-4, to determine whether you need

to have your withholding increased or de-

creased.

Rules Your Employer Must Follow

It may be helpful for you to know some of the

withholding rules your employer must follow.

These rules can affect how to fill out your Form

W-4 and how to handle problems that may

arise.

New Form W-4. When you start a new job,

your employer should have you complete a

Form W-4. Beginning with your first payday,

your employer will use the information you give

on the form to figure your withholding.

If you later fill out a new Form W-4, your em-

ployer can put it into effect as soon as possible.

The deadline for putting it into effect is the start

of the first payroll period ending 30 or more

days after you turn it in.

No Form W-4. If you don't give your employer

a completed Form W-4, your employer must

withhold at the highest rate, as if you were sin-

gle.

Repaying withheld tax. If you find you are

having too much tax withheld because you

didn't claim the correct amount of withholding

you are entitled to, you should give your em-

ployer a new Form W-4. Your employer can’t re-

pay any of the tax previously withheld. Instead,

claim the full amount withheld when you file

your tax return.

However, if your employer has withheld

more than the correct amount of tax for the

Form W-4 you have in effect, you don't have to

fill out a new Form W-4 to have your withholding

lowered to the correct amount. Your employer

can repay the amount that was withheld incor-

rectly. If you aren’t repaid, your Form W-2 will

reflect the full amount actually withheld, which

you would claim when you file your tax return.

Exemption From Withholding

If you claim exemption from withholding, your

employer won't withhold federal income tax

from your wages. The exemption applies only to

income tax, not to social security, Medicare, or

FUTA tax withholding.

TIP

You can claim exemption from withholding

for 2024 only if both of the following situations

apply.

•

For 2023, you had a right to a refund of all

federal income tax withheld because you

had no tax liability.

•

For 2024, you expect a refund of all federal

income tax withheld because you expect to

have no tax liability.

Students. If you are a student, you aren’t auto-

matically exempt. See chapter 1 to find out if

you must file a return. If you work only part time

or only during the summer, you may qualify for

exemption from withholding.

Age 65 or older or blind. If you are 65 or

older or blind, use Worksheet 1-1 or 1-2 in

chapter 1 of Pub. 505 to help you decide if you

qualify for exemption from withholding. Don't

use either worksheet if you will itemize deduc-

tions or claim tax credits on your 2024 return.

Instead, see Itemizing deductions or claiming

credits in chapter 1 of Pub. 505.

Claiming exemption from withholding. To

claim exemption, you must give your employer a

Form W-4. Write “Exempt” on the form in the

space below Step 4(c) and complete the appli-

cable steps of the form.

If you claim exemption, but later your situa-

tion changes so that you will have to pay in-

come tax after all, you must file a new Form W-4

within 10 days after the change. If you claim ex-

emption in 2024, but you expect to owe income

tax for 2025, you must file a new Form W-4 by

December 1, 2024.

Your claim of exempt status may be re-

viewed by the IRS.

An exemption is good for only 1 year. You

must give your employer a new Form W-4 by

February 15 each year to continue your exemp-

tion.

Supplemental Wages

Supplemental wages include bonuses, commis-

sions, overtime pay, vacation allowances, cer-

tain sick pay, and expense allowances under

certain plans. The payer can figure withholding

on supplemental wages using the same method

used for your regular wages. However, if these

payments are identified separately from your

regular wages, your employer or other payer of

supplemental wages can withhold income tax

from these wages at a flat rate.

Expense allowances. Reimbursements or

other expense allowances paid by your em-

ployer under a nonaccountable plan are treated

as supplemental wages.

Reimbursements or other expense allowan-

ces paid under an accountable plan that are

more than your proven expenses are treated as

paid under a nonaccountable plan if you don't

return the excess payments within a reasonable

period of time.

For more information about accountable and

nonaccountable expense allowance plans, see

Pub. 505.

Penalties

You may have to pay a penalty of $500 if both of

the following apply.

•

You make statements or claim withholding

on your Form W-4 that reduce the amount

of tax withheld.

•

You have no reasonable basis for those

statements or withholding at the time you

prepare your Form W-4.

There is also a criminal penalty for willfully

supplying false or fraudulent information on your

Form W-4 or for willfully failing to supply infor-

mation that would increase the amount with-

held. The penalty upon conviction can be either

a fine of up to $1,000 or imprisonment for up to

1 year, or both.

These penalties will apply if you deliberately

and knowingly falsify your Form W-4 in an at-

tempt to reduce or eliminate the proper with-

holding of taxes. A simple error or an honest

mistake won't result in one of these penalties.

Tips

The tips you receive while working on your job

are considered part of your pay. You must in-

clude your tips on your tax return on the same

line as your regular pay. However, tax isn't with-

held directly from tip income, as it is from your

regular pay. Nevertheless, your employer will

take into account the tips you report when figur-

ing how much to withhold from your regular pay.

For more information on reporting your tips

to your employer and on the withholding rules

for tip income, see Pub. 531, Reporting Tip In-

come.

How employer figures amount to withhold.

The tips you report to your employer are coun-

ted as part of your income for the month you re-

port them. Your employer can figure your with-

holding in either of two ways.

•

By withholding at the regular rate on the

sum of your pay plus your reported tips.

•

By withholding at the regular rate on your

pay plus a percentage of your reported

tips.

Not enough pay to cover taxes. If your regu-

lar pay isn't enough for your employer to with-

hold all the tax (including income tax and social

security and Medicare taxes (or the equivalent

railroad retirement tax)) due on your pay plus

your tips, you can give your employer money to

cover the shortage. See Pub. 531 for more infor-

mation.

Allocated tips. Your employer shouldn't with-

hold income tax, Medicare tax, social security

tax, or railroad retirement tax on any allocated

tips. Withholding is based only on your pay plus

your reported tips. Your employer should refund

to you any incorrectly withheld tax. See Pub.

531 for more information.

Taxable Fringe Benefits

The value of certain noncash fringe benefits you

receive from your employer is considered part

of your pay. Your employer must generally with-

hold income tax on these benefits from your

regular pay.

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Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 39

For information on fringe benefits, see

Fringe Benefits under Employee Compensation

in chapter 5.

Although the value of your personal use of

an employer-provided car, truck, or other high-

way motor vehicle is taxable, your employer can

choose not to withhold income tax on that

amount. Your employer must notify you if this

choice is made.

For more information on withholding on taxa-

ble fringe benefits, see chapter 1 of Pub. 505.

Sick Pay

Sick pay is a payment to you to replace your

regular wages while you are temporarily absent

from work due to sickness or personal injury. To

qualify as sick pay, it must be paid under a plan

to which your employer is a party.

If you receive sick pay from your employer or

an agent of your employer, income tax must be

withheld. An agent who doesn't pay regular wa-

ges to you may choose to withhold income tax

at a flat rate.

However, if you receive sick pay from a third

party who isn't acting as an agent of your em-

ployer, income tax will be withheld only if you

choose to have it withheld. See Form W-4S,

later.

If you receive payments under a plan in

which your employer doesn't participate (such

as an accident or health plan where you paid all

the premiums), the payments aren’t sick pay

and usually aren’t taxable.

Union agreements. If you receive sick pay un-

der a collective bargaining agreement between

your union and your employer, the agreement

may determine the amount of income tax with-

holding. See your union representative or your

employer for more information.

Form W-4S. If you choose to have income tax

withheld from sick pay paid by a third party,

such as an insurance company, you must fill out

Form W-4S. Its instructions contain a worksheet

you can use to figure the amount you want with-

held. They also explain restrictions that may ap-

ply.

Give the completed form to the payer of your

sick pay. The payer must withhold according to

your directions on the form.

Estimated tax. If you don't request withholding

on Form W-4S, or if you don't have enough tax

withheld, you may have to make estimated tax

payments. If you don't pay enough tax, either

through estimated tax or withholding, or a com-

bination of both, you may have to pay a penalty.

See Underpayment Penalty for 2023 at the end

of this chapter.

Pensions and Annuities

Income tax will usually be withheld from your

pension or annuity distributions unless you

choose not to have it withheld. This rule applies

to distributions from:

•

A traditional individual retirement arrange-

ment (IRA);

•

A life insurance company under an endow-

ment, annuity, or life insurance contract;

•

A pension, annuity, or profit-sharing plan;

•

A stock bonus plan; and

•

Any other plan that defers the time you re-

ceive compensation.

The amount withheld depends on whether

you receive payments spread out over more

than 1 year (periodic payments), within 1 year

(nonperiodic payments), or as an eligible roll-

over distribution (ERD). Income tax withholding

from an ERD is mandatory.

More information. For more information on

withholding on pensions and annuities, includ-

ing a discussion of Form W-4P, see Pensions

and Annuities in chapter 1 of Pub. 505.

Gambling Winnings

Income tax is withheld at a flat 24% rate from

certain kinds of gambling winnings.

Gambling winnings of more than $5,000

from the following sources are subject to in-

come tax withholding.

•

Any sweepstakes; wagering pool, including

payments made to winners of poker tour-

naments; or lottery.

•

Any other wager, if the proceeds are at

least 300 times the amount of the bet.

It doesn't matter whether your winnings are paid

in cash, in property, or as an annuity. Winnings

not paid in cash are taken into account at their

fair market value.

Exception. Gambling winnings from bingo,

keno, and slot machines generally aren’t sub-

ject to income tax withholding. However, you

may need to provide the payer with a social se-

curity number to avoid withholding. See Backup

withholding on gambling winnings in chapter 1

of Pub. 505. If you receive gambling winnings

not subject to withholding, you may need to pay

estimated tax. See Estimated Tax for 2024,

later.

If you don't pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty. See Un-

derpayment Penalty for 2023 at the end of this

chapter.

Form W-2G. If a payer withholds income tax

from your gambling winnings, you should re-

ceive a Form W-2G, Certain Gambling Win-

nings, showing the amount you won and the

amount withheld. Report the tax withheld on

Form 1040 or 1040-SR, line 25c.

Unemployment

Compensation

You can choose to have income tax withheld

from unemployment compensation. To make

this choice, fill out Form W-4V (or a similar form

provided by the payer) and give it to the payer.

All unemployment compensation is taxable.

If you don't have income tax withheld, you may

have to pay estimated tax. See Estimated Tax

for 2024, later.

If you don't pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty. See Un-

derpayment Penalty for 2023 at the end of this

chapter.

Federal Payments

You can choose to have income tax withheld

from certain federal payments you receive.

These payments are the following.

1. Social security benefits.

2. Tier 1 railroad retirement benefits.

3. Commodity credit corporation loans you

choose to include in your gross income.

4. Payments under the Agricultural Act of

1949 (7 U.S.C. 1421 et seq.), as amen-

ded, or title II of the Disaster Assistance

Act of 1988, that are treated as insurance

proceeds and that you receive because:

a. Your crops were destroyed or dam-

aged by drought, flood, or any other

natural disaster; or

b. You were unable to plant crops be-

cause of a natural disaster described

in (a).

5. Any other payment under federal law as

determined by the Secretary.

To make this choice, fill out Form W-4V (or a

similar form provided by the payer) and give it to

the payer.

If you don't choose to have income tax with-

held, you may have to pay estimated tax. See

Estimated Tax for 2024, later.

If you don't pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty. See Un-

derpayment Penalty for 2023 at the end of this

chapter.

More information. For more information about

the tax treatment of social security and railroad

retirement benefits, see chapter 7. Get Pub.

225, Farmer's Tax Guide, for information about

the tax treatment of commodity credit corpora-

tion loans or crop disaster payments.

Backup Withholding

Banks or other businesses that pay you certain

kinds of income must file an information return

(Form 1099) with the IRS. The information re-

turn shows how much you were paid during the

year. It also includes your name and taxpayer

identification number (TIN). TINs are explained

in chapter 1 under Social Security Number

(SSN).

These payments generally aren’t subject to

withholding. However, “backup” withholding is

required in certain situations. Backup withhold-

ing can apply to most kinds of payments that

are reported on Form 1099.

The payer must withhold at a flat 24% rate in

the following situations.

•

You don't give the payer your TIN in the re-

quired manner.

•

The IRS notifies the payer that the TIN you

gave is incorrect.

•

You are required, but fail, to certify that you

aren’t subject to backup withholding.

•

The IRS notifies the payer to start withhold-

ing on interest or dividends because you

have underreported interest or dividends

on your income tax return. The IRS will do

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40 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

this only after it has mailed you four noti-

ces.

Go to IRS.gov/Businesses/Small-

Businesses-Self-Employed/Backup-

Withholding for more information on kinds of

payments subject to backup withholding.

Penalties. There are civil and criminal penal-

ties for giving false information to avoid backup

withholding. The civil penalty is $500. The crimi-

nal penalty, upon conviction, is a fine of up to

$1,000 or imprisonment of up to 1 year, or both.

Estimated Tax for 2024

Estimated tax is the method used to pay tax on

income that isn't subject to withholding. This in-

cludes income from self-employment, interest,

dividends, alimony, rent, gains from the sale of

assets, prizes, and awards. You may also have

to pay estimated tax if the amount of income tax

being withheld from your salary, pension, or

other income isn't enough.

Estimated tax is used to pay both income

tax and self-employment tax, as well as other

taxes and amounts reported on your tax return.

If you don't pay enough tax, either through with-

holding or estimated tax, or a combination of

both, you may have to pay a penalty. If you don't

pay enough by the due date of each payment

period (see When To Pay Estimated Tax, later),

you may be charged a penalty even if you are

due a refund when you file your tax return. For

information on when the penalty applies, see

Underpayment Penalty for 2023 at the end of

this chapter.

Who Doesn't Have To Pay

Estimated Tax

If you receive salaries or wages, you can avoid

having to pay estimated tax by asking your em-

ployer to take more tax out of your earnings. To

do this, give a new Form W-4 to your employer.

See chapter 1 of Pub. 505.

Estimated tax not required. You don't have to

pay estimated tax for 2024 if you meet all three

of the following conditions.

•

You had no tax liability for 2023.

•

You were a U.S. citizen or resident alien for

the whole year.

•

Your 2023 tax year covered a 12-month pe-

riod.

You had no tax liability for 2023 if your total

tax was zero or you didn't have to file an income

tax return. For the definition of “total tax” for

2023, see Pub. 505, chapter 2.

Who Must Pay Estimated

Tax

If you owe additional tax for 2023, you may have

to pay estimated tax for 2024.

You can use the following general rule as a

guide during the year to see if you will have

enough withholding, or if you should increase

your withholding or make estimated tax pay-

ments.

General rule. In most cases, you must pay es-

timated tax for 2024 if both of the following ap-

ply.

1. You expect to owe at least $1,000 in tax for

2024, after subtracting your withholding

and refundable credits.

2. You expect your withholding plus your re-

fundable credits to be less than the

smaller of:

a. 90% of the tax to be shown on your

2024 tax return, or

b. 100% of the tax shown on your 2023

tax return (but see Special rules for

farmers, fishermen, and higher in-

come taxpayers, later). Your 2023 tax

return must cover all 12 months.

If the result from using the general rule

above suggests that you won't have

enough withholding, complete the

2024 Estimated Tax Worksheet in Pub. 505 for a

more accurate calculation.

Special rules for farmers, fishermen, and

higher income taxpayers. If at least

two-thirds of your gross income for tax year

2023 or 2024 is from farming or fishing, substi-

tute 66

/3% for 90% in (2a) under the General

rule, earlier. If your AGI for 2023 was more than

$150,000 ($75,000 if your filing status for 2024

is married filing a separate return), substitute

110% for 100% in (2b) under General rule, ear-

lier. See Figure 4-A and Pub. 505, chapter 2, for

more information.

Aliens. Resident and nonresident aliens may

also have to pay estimated tax. Resident aliens

should follow the rules in this chapter unless no-

ted otherwise. Nonresident aliens should get

Form 1040-ES (NR), U.S. Estimated Tax for

Nonresident Alien Individuals.

CAUTION

Figure 4-A. Do You Have To Pay Estimated Tax?

Start Here

Yes

NoNo

Yes

Will you owe $1,000 or more

for 2024 after subtracting

income tax withholding and

refundable credits* from your

total tax? (Don’t subtract any

estimated tax payments.)

Will your income tax

withholding and refundable

credits* be at least 90%

(66

% for farmers and

shermen) of the tax shown on

your 2024 tax return?

Will your income tax

withholding and refundable

credits* be at least 100%** of

the tax shown on your 2023

tax return?

Note. Your 2023 return must

have covered a 12-month

period.

You are NOT required to pay

estimated tax.

*Use the refundable credits shown on the 2024 Estimated Tax Worksheet in Pub. 505.

**110% if less than two-thirds of your gross income for 2023 and 2024 is from farming or shing and your 2023

adjusted gross income was more than $150,000 ($75,000 if your ling status for 2024 is married ling a separate return).

You MUST make estimated

tax payment(s) by the

required due date(s).

See When To Pay

Estimated Tax.

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Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 41

You are an alien if you aren’t a citizen or na-

tional of the United States. You are a resident

alien if you either have a green card or meet the

substantial presence test. For more information

about the substantial presence test, see Pub.

519, U.S. Tax Guide for Aliens.

Married taxpayers. If you qualify to make joint

estimated tax payments, apply the rules dis-

cussed here to your joint estimated income.

You and your spouse can make joint estima-

ted tax payments even if you aren’t living to-

gether.

However, you and your spouse can’t make

joint estimated tax payments if:

•

You are legally separated under a decree

of divorce or separate maintenance,

•

You and your spouse have different tax

years, or

•

Either spouse is a nonresident alien (un-

less that spouse elected to be treated as a

resident alien for tax purposes (see chap-

ter 1 of Pub. 519)).

If you and your spouse can’t make estimated

tax payments, apply these rules to your sepa-

rate estimated income. Making joint or separate

estimated tax payments won't affect your choice

of filing a joint tax return or separate returns for

2024.

2023 separate returns and 2024 joint re-

turn. If you plan to file a joint return with your

spouse for 2024 but you filed separate returns

for 2023, your 2023 tax is the total of the tax

shown on your separate returns. You filed a

separate return if you filed as single, head of

household, or married filing separately.

2023 joint return and 2024 separate re-

turns. If you plan to file a separate return for

2024 but you filed a joint return for 2023, your

2023 tax is your share of the tax on the joint re-

turn. You file a separate return if you file as sin-

gle, head of household, or married filing sepa-

rately.

To figure your share of the tax on the joint re-

turn, first figure the tax both you and your

spouse would have paid had you filed separate

returns for 2023 using the same filing status as

for 2024. Then, multiply the tax on the joint re-

turn by the following fraction.

The tax you would have paid had

you filed a separate return

The total tax you and your

spouse would have paid had

you filed separate returns

Example. Taxpayer A and Taxpayer B filed

a joint return for 2023 showing taxable income

of $48,500 and tax of $5,383. Of the $48,500

taxable income, $40,100 was Taxpayer A’s and

the rest was Taxpayer B's. For 2024, they plan

to file married filing separately. Taxpayer A fig-

ures tax on the 2023 joint return as follows.

Tax on $40,100 based on a

separate return ....... $4,595

Tax on $8,400 based on a

separate return .......

843

Total ............... $5,438

Taxpayer A's percentage of

total ($4,595 ÷ $5,438) ... 85%

Taxpayer A's share of tax on

joint return

($5,383 × 85%) .......

$4,576

How To Figure

Estimated Tax

To figure your estimated tax, you must figure

your expected adjusted gross income (AGI),

taxable income, taxes, deductions, and credits

for the year.

When figuring your 2024 estimated tax, it

may be helpful to use your income, deductions,

and credits for 2023 as a starting point. Use

your 2023 federal tax return as a guide. You can

use Form 1040-ES and Pub. 505 to figure your

estimated tax. Nonresident aliens use Form

1040-ES (NR) and Pub. 505 to figure estimated

tax (see chapter 8 of Pub. 519 for more informa-

tion).

You must make adjustments both for

changes in your own situation and for recent

changes in the tax law. For a discussion of

these changes, visit IRS.gov.

For more complete information on how to

figure your estimated tax for 2024, see chap-

ter 2 of Pub. 505.

When To Pay Estimated

Tax

For estimated tax purposes, the tax year is divi-

ded into four payment periods. Each period has

a specific payment due date. If you don't pay

enough tax by the due date of each payment

period, you may be charged a penalty even if

you are due a refund when you file your income

tax return. The payment periods and due dates

for estimated tax payments are shown next.

For the period:

Due date:*

Jan. 1–March 31 ......April 15

April 1–May 31 .......June 17

June 1–August 31 ..... Sept. 16

Sept. 1–Dec. 31 ...... Jan. 15, next year

*See Saturday, Sunday, holiday rule and January

payment.

Saturday, Sunday, holiday rule. If the due

date for an estimated tax payment falls on a

Saturday, Sunday, or legal holiday, the payment

will be on time if you make it on the next day

that isn't a Saturday, Sunday, or legal holiday.

January payment. If you file your 2024 Form

1040 or 1040-SR by January 31, 2025, and pay

the rest of the tax you owe, you don't need to

make the payment due on January 15, 2025.

Fiscal year taxpayers. If your tax year doesn't

start on January 1, see the Form 1040-ES in-

structions for your payment due dates.

When To Start

You don't have to make estimated tax payments

until you have income on which you will owe in-

come tax. If you have income subject to estima-

ted tax during the first payment period, you

must make your first payment by the due date

for the first payment period. You can pay all your

estimated tax at that time, or you can pay it in

installments. If you choose to pay in install-

ments, make your first payment by the due date

for the first payment period. Make your remain-

ing installment payments by the due dates for

the later periods.

No income subject to estimated tax during

first period. If you don't have income subject

to estimated tax until a later payment period,

you must make your first payment by the due

date for that period. You can pay your entire es-

timated tax by the due date for that period or

you can pay it in installments by the due date for

that period and the due dates for the remaining

periods.

General Due Dates for

Estimated Tax

Installment Payments

Table 4-1.

If you first

have income

on which you

must pay

estimated tax:

Make

installments

by:*

Make later

installments

by:*

Before April 1 April 15 June 15

Sept. 15

Jan. 15, next

year

April 1–May 31 June 15 Sept. 15

Jan. 15, next

year

June 1–Aug. 31 Sept. 15 Jan. 15, next

year

After Aug. 31 Jan. 15, next

year

(None)

*See Saturday, Sunday, holiday rule and January

payment.

How much to pay to avoid a penalty. To de-

termine how much you should pay by each pay-

ment due date, see How To Figure Each Pay-

ment next.

How To Figure

Each Payment

You should pay enough estimated tax by the

due date of each payment period to avoid a

penalty for that period. You can figure your re-

quired payment for each period by using either

the regular installment method or the annual-

ized income installment method. These meth-

ods are described in chapter 2 of Pub. 505. If

you don't pay enough during each payment pe-

riod, you may be charged a penalty even if you

are due a refund when you file your tax return.

If the earlier discussion of No income sub-

ject to estimated tax during first period or the

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42 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

later discussion of Change in estimated tax ap-

plies to you, you may benefit from reading An-

nualized Income Installment Method in chap-

ter 2 of Pub. 505 for information on how to avoid

a penalty.

Underpayment penalty. Under the regular in-

stallment method, if your estimated tax payment

for any period is less than one-fourth of your es-

timated tax, you may be charged a penalty for

underpayment of estimated tax for that period

when you file your tax return. Under the annual-

ized income installment method, your estimated

tax payments vary with your income, but the

amount required must be paid each period. See

Instructions for Form 2210 for more information.

Change in estimated tax. After you make an

estimated tax payment, changes in your in-

come, adjustments, deductions, or credits may

make it necessary for you to refigure your esti-

mated tax. Pay the unpaid balance of your

amended estimated tax by the next payment

due date after the change or in installments by

that date and the due dates for the remaining

payment periods.

Estimated Tax Payments

Not Required

You don't have to pay estimated tax if your with-

holding in each payment period is at least as

much as:

•

One-fourth of your required annual pay-

ment, or

•

Your required annualized income install-

ment for that period.

You also don't have to pay estimated tax if you

will pay enough through withholding to keep the

amount you owe with your return under $1,000.

How To Pay Estimated Tax

There are several ways to pay estimated tax.

•

Credit an overpayment on your 2023 return

to your 2024 estimated tax.

•

Pay by direct transfer from your bank ac-

count, or pay by debit or credit card using a

pay-by-phone system or the Internet.

•

Send in your payment (check or money or-

der) with a payment voucher from Form

1040-ES.

Credit an Overpayment

If you show an overpayment of tax after com-

pleting your Form 1040 or 1040-SR for 2023,

you can apply part or all of it to your estimated

tax for 2024. On line 36 of Form 1040 or

1040-SR, enter the amount you want credited to

your estimated tax rather than refunded. Take

the amount you have credited into account

when figuring your estimated tax payments.

You can’t have any of the amount you credi-

ted to your estimated tax refunded to you until

you file your tax return for the following year. You

also can’t use that overpayment in any other

way.

Pay Online

The IRS offers an electronic payment option

that is right for you. Paying online is convenient,

secure, and helps make sure we get your pay-

ments on time. To pay your taxes online or for

more information, go to IRS.gov/Payments. You

can pay using any of the following methods.

•

IRS Direct Pay. For online transfers di-

rectly from your checking or savings ac-

count at no cost to you, go to IRS.gov/

Payments.

•

Pay by Card or Digital Wallet. To pay by

debit or credit card or digital wallet, go to

IRS.gov/Payments. A fee is charged by

these service providers.You can also pay

by phone with a debit or credit card. See

Debit or credit card under Pay by Phone,

later.

•

Electronic Funds Withdrawal (EFW).

This is an integrated e-file/e-pay option of-

fered only when filing your federal taxes

electronically using tax preparation soft-

ware, through a tax professional, or the IRS

at IRS.gov/OPA.

•

Online Payment Agreement. If you can’t

pay in full by the due date of your tax re-

turn, you can apply for an online monthly

installment agreement at IRS.gov/

Payments. Once you complete the online

process, you will receive immediate notifi-

cation of whether your agreement has

been approved. A user fee is charged.

•

IRS2GO. This is the mobile application of

the IRS. You can access Direct Pay or Pay

By Card by downloading the application.

Electronic Federal Tax Payment

System (EFTPS)

This system allows you to pay your taxes online

or by phone directly from your checking or sav-

ing account.There is no fee for this service. You

must be enrolled either online or have an enroll-

ment form mailed to you. See EFTPS under Pay

by Phone, later.

Pay by Phone

Paying by phone is another safe and secure

method of paying electronically. Use one of the

following methods: (1) call one of the debit or

credit card providers, or (2) use the Electronic

Federal Tax Payment System (EFTPS) to pay

directly from your checking or savings account.

Debit or credit card. Call one of our service

providers. Each charges a fee that varies by

provider, card type, and payment amount.

WorldPay US, Inc.

844-PAY-TAX-8

(844-729-8298)

www.payUSAtax.com

ACI Payments, Inc. (Formerly Official

Payments)

888-272-9829

www.fed.acipayonline.com

Link2Gov Corporation

888-PAY-1040

(888-729-1040)

www.PAY1040.com

EFTPS. To get more information about EFTPS

or to enroll in EFTPS, visit EFTPS.gov or call

800-555-4477. To contact EFTPS using Tele-

communications Relay Services (TRS) for peo-

ple who are deaf, hard of hearing, or have a

speech disability, dial 711 and then provide the

TRS assistant the 800-555-4477 number above

or 800-733-4829. Additional information about

EFTPS is also available in Pub. 966.

Pay by Mobile Device

To pay through your mobile device, download

the IRS2Go application.

Pay by Cash

Cash is an in-person payment option for individ-

uals provided through retail partners with a

maximum of $1,000 per day per transaction. To

make a cash payment, you must choose a pay-

ment processor online with ACI Payments, Inc.

at fed.acipayonline.com or www.Pay1040.com,

our official payment provider. For more informa-

tion, go to IRS.gov/paywithcash or see Pub

5250. Don't send cash payments through the

mail.

Pay by Check or Money Order

Using the Estimated Tax

Payment Voucher

Before submitting a payment through the mail

using the estimated tax payment voucher,

please consider alternative methods. One of

our safe, quick, and easy electronic payment

options might be right for you.

If you choose to mail in your payment, each

payment of estimated tax by check or money or-

der must be accompanied by a payment

voucher from Form 1040-ES.

During 2023, if you:

•

Made at least one estimated tax payment

but not by electronic means,

•

Didn't use software or a paid preparer to

prepare or file your return,

then you should receive a copy of the 2024

Form 1040-ES with payment vouchers.

The enclosed payment vouchers will be pre-

printed with your name, address, and social se-

curity number. Using the preprinted vouchers

will speed processing, reduce the chance of er-

ror, and help save processing costs.

Use the window envelopes that came with

your Form 1040-ES package. If you use your

own envelopes, make sure you mail your pay-

ment vouchers to the address shown in the

Form 1040-ES instructions for the place where

you live.

No checks of $100 million or more accep-

ted. The IRS can’t accept a single check (in-

cluding a cashier’s check) for amounts of

$100,000,000 ($100 million) or more. If you are

sending $100 million or more by check, you’ll

need to spread the payment over two or more

checks with each check made out for an

amount less than $100 million. This limit doesn’t

apply to other methods of payment (such as

electronic payments). Please consider a

method of payment other than check if the

amount of the payment is over $100 million.

Note. These criteria can change without no-

tice. If you don't receive a Form 1040-ES pack-

age and you are required to make an estimated

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Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 43

tax payment, you should go to IRS.gov/

Form1040ES and print a copy of Form 1040-ES

that includes four blank payment vouchers.

Complete one of these and make your payment

timely to avoid penalties for paying late.

Don't use the address shown in the In-

structions for Form 1040 for your esti-

mated tax payments.

If you didn't pay estimated tax last year, you

can order Form 1040-ES from the IRS (see the

inside back cover of this publication) or down-

load it from IRS.gov. Follow the instructions to

make sure you use the vouchers correctly.

Joint estimated tax payments. If you file a

joint return and are making joint estimated tax

payments, enter the names and social security

numbers on the payment voucher in the same

order as they will appear on the joint return.

Change of address. You must notify the IRS if

you are making estimated tax payments and

you changed your address during the year.

Complete Form 8822, Change of Address, and

mail it to the address shown in the instructions

for that form.

Credit for Withholding

and Estimated Tax

for 2023

When you file your 2023 income tax return, take

credit for all the income tax and excess social

security or railroad retirement tax withheld from

your salary, wages, pensions, etc. Also take

credit for the estimated tax you paid for 2023.

These credits are subtracted from your total tax.

Because these credits are refundable, you

should file a return and claim these credits,

even if you don't owe tax.

Two or more employers. If you had two or

more employers in 2023 and were paid wages

of more than $160,200, too much social secur-

ity or tier 1 railroad retirement tax may have

been withheld from your pay. You may be able

to claim the excess as a credit against your in-

come tax when you file your return. See the In-

structions for Form 1040 for more information.

Withholding

If you had income tax withheld during 2023, you

should be sent a statement by January 31,

2024, showing your income and the tax with-

held. Depending on the source of your income,

you should receive:

•

Form W-2, Wage and Tax Statement;

•

Form W-2G, Certain Gambling Winnings;

•

A form in the 1099 series.

Forms W-2 and W-2G. If you file a paper re-

turn, always file Form W-2 with your income tax

return. File Form W-2G with your return only if it

shows any federal income tax withheld from

your winnings.

You should get at least two copies of each

form. If you file a paper return, attach one copy

to the front of your federal income tax return.

Keep one copy for your records. You should

CAUTION

also receive copies to file with your state and lo-

cal returns.

Form W-2

Your employer is required to provide or send

Form W-2 to you no later than January 31,

2024. You should receive a separate Form W-2

from each employer you worked for.

If you stopped working before the end of

2023, your employer could have given you your

Form W-2 at any time after you stopped work-

ing. However, your employer must provide or

send it to you by January 31, 2024.

If you ask for the form, your employer must

send it to you within 30 days after receiving your

written request or within 30 days after your final

wage payment, whichever is later.

If you haven't received your Form W-2 by

January 31, you should ask your employer for it.

If you don't receive it by early February, call the

IRS.

Form W-2 shows your total pay and other

compensation and the income tax, social secur-

ity tax, and Medicare tax that was withheld dur-

ing the year. Include the federal income tax

withheld (as shown in box 2 of Form W-2) on

Form 1040 or 1040-SR, line 25a.

In addition, Form W-2 is used to report any

taxable sick pay you received and any income

tax withheld from your sick pay.

Form W-2G

If you had gambling winnings in 2023, the payer

may have withheld income tax. If tax was with-

held, the payer will give you a Form W-2G

showing the amount you won and the amount of

tax withheld.

Report the amounts you won on Schedule 1

(Form 1040). Take credit for the tax withheld on

Form 1040 or 1040-SR, line 25c.

The 1099 Series

Most forms in the 1099 series aren’t filed with

your return. These forms should be furnished to

you by January 31, 2024 (or, for Forms 1099-B,

1099-S, and certain Forms 1099-MISC, by Feb-

ruary 15, 2024). Unless instructed to file any of

these forms with your return, keep them for your

records. There are several different forms in this

series, which are not listed. See the instructions

for the specific Form 1099 for more information.

Form 1099-R. Attach Form 1099-R to your pa-

per return if box 4 shows federal income tax

withheld. Include the amount withheld in the to-

tal on line 25b of Form 1040 or 1040-SR.

Backup withholding. If you were subject to

backup withholding on income you received

during 2023, include the amount withheld, as

shown on your Form 1099, in the total on

line 25b of Form 1040 or 1040-SR.

Form Not Correct

If you receive a form with incorrect information

on it, you should ask the payer for a corrected

form. Call the telephone number or write to the

address given for the payer on the form. The

corrected Form W-2G or Form 1099 you receive

will have an “X” in the “CORRECTED” box at the

top of the form. A special form, Form W-2c,

Corrected Wage and Tax Statement, is used to

correct a Form W-2.

In certain situations, you will receive two

forms in place of the original incorrect form. This

will happen when your taxpayer identification

number is wrong or missing, your name and ad-

dress are wrong, or you received the wrong

type of form (for example, a Form 1099-DIV,

Dividends and Distributions, instead of a Form

1099-INT, Interest Income). One new form you

receive will be the same incorrect form or have

the same incorrect information, but all money

amounts will be zero. This form will have an “X”

in the “CORRECTED” box at the top of the form.

The second new form should have all the cor-

rect information, prepared as though it is the

original (the “CORRECTED” box won't be

checked).

Form Received After Filing

If you file your return and you later receive a

form for income that you didn't include on your

return, you should report the income and take

credit for any income tax withheld by filing Form

1040-X, Amended U.S. Individual Income Tax

Return.

Separate Returns

If you are married but file a separate return, you

can take credit only for the tax withheld from

your own income. Don't include any amount

withheld from your spouse's income. However,

different rules may apply if you live in a com-

munity property state.

Community property states are listed in

chapter 2. For more information on these rules,

and some exceptions, see Pub. 555, Commun-

ity Property.

Estimated Tax

Take credit for all your estimated tax payments

for 2023 on Form 1040 or 1040-SR, line 26. In-

clude any overpayment from 2022 that you had

credited to your 2023 estimated tax.

Name changed. If you changed your name,

and you made estimated tax payments using

your old name, attach a brief statement to the

front of your paper tax return indicating:

•

When you made the payments,

•

The amount of each payment,

•

Your name when you made the payments,

and

•

Your social security number.

The statement should cover payments you

made jointly with your spouse as well as any

you made separately.

Be sure to report the change to the Social

Security Administration. This prevents delays in

processing your return and issuing any refunds.

Separate Returns

If you and your spouse made separate estima-

ted tax payments for 2023 and you file separate

returns, you can take credit only for your own

payments.

If you made joint estimated tax payments,

you must decide how to divide the payments

between your returns. One of you can claim all

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44 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

of the estimated tax paid and the other none, or

you can divide it in any other way you agree on.

If you can’t agree, you must divide the pay-

ments in proportion to each spouse's individual

tax as shown on your separate returns for 2023.

Divorced Taxpayers

If you made joint estimated tax payments for

2023, and you were divorced during the year,

either you or your former spouse can claim all of

the joint payments, or you each can claim part

of them. If you can’t agree on how to divide the

payments, you must divide them in proportion to

each spouse's individual tax as shown on your

separate returns for 2023.

If you claim any of the joint payments on

your tax return, enter your former spouse's so-

cial security number (SSN) in the space provi-

ded on the front of Form 1040 or 1040-SR. If

you divorced and remarried in 2023, enter your

present spouse's SSN in the space provided on

the front of Form 1040 or 1040-SR. Also, on the

dotted line next to line 26, enter your former

spouse’s SSN, followed by “DIV.”

Underpayment Penalty

for 2023

If you didn't pay enough tax, either through with-

holding or by making timely estimated tax pay-

ments, you will have an underpayment of esti-

mated tax and you may have to pay a penalty.

Generally, you won't have to pay a penalty

for 2023 if any of the following apply.

•

The total of your withholding and estimated

tax payments was at least as much as your

2022 tax (or 110% of your 2022 tax if your

AGI was more than $150,000, $75,000 if

your 2023 filing status is married filing sep-

arately) and you paid all required estima-

ted tax payments on time;

•

The tax balance due on your 2023 return is

no more than 10% of your total 2023 tax,

and you paid all required estimated tax

payments on time;

•

Your total 2023 tax minus your withholding

and refundable credits is less than $1,000;

•

You didn't have a tax liability for 2022 and

your 2022 tax year was 12 months; or

•

You didn't have any withholding taxes and

your current year tax less any household

employment taxes is less than $1,000.

Farmers and fishermen. Special rules apply if

you are a farmer or fisherman. See the Instruc-

tions for Form 2210-F for more information.

IRS can figure the penalty for you. If you

think you owe the penalty but you don't want to

figure it yourself when you file your tax return,

you may not have to. Generally, the IRS will fig-

ure the penalty for you and send you a bill. How-

ever, if you think you are able to lower or elimi-

nate your penalty, you must complete Form

2210 or Form 2210-F and attach it to your paper

return. See Instructions for Form 2210 for more

information.

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Publication 17 (2023) Chapter 4 Tax Withholding and Estimated Tax 45

Part Two.

Income and

Adjustments to

Income

The five chapters in this part discuss many kinds of income and

adjustments to income. They explain which income is and isn’t taxed and

discuss some of the adjustments to income that you can make in figuring

your adjusted gross income.

The Form 1040 and Form 1040-SR schedules that are discussed in these

chapters are:

•

Schedule 1, Additional Income and Adjustments to Income;

•

Schedule 2 (Part II), Other Taxes; and

•

Schedule 3 (Part II), Other Payments and Refundable Credits.

Table V. Other Adjustments to Income

Use this table to find information about other adjustments to income not covered in this part of the publication.

IF you are looking for more information about the

deduction for...

THEN see...

contributions to a health savings account Pub. 969, Health Savings Accounts and Other Tax-Favored

Health Plans.

moving expenses Pub. 3, Armed Forces’ Tax Guide.

part of your self-employment tax chapter 11.

self-employed health insurance Pub. 502, Medical and Dental Expenses.

payments to self-employed SEP, SIMPLE, and qualified plans Pub. 560, Retirement Plans for Small Business.

penalty on the early withdrawal of savings chapter 6.

contributions to an Archer MSA Pub. 969.

reforestation amortization or expense chapters 4 and 7 of Pub. 225, Farmer's Tax Guide.

contributions to Internal Revenue Code section 501(c)(18)(D)

pension plans

Pub. 525, Taxable and Nontaxable Income.

expenses from the rental of personal property chapter 8.

certain required repayments of supplemental unemployment

benefits (sub-pay)

chapter 8.

foreign housing costs chapter 4 of Pub. 54, Tax Guide for U.S. Citizens and Resident

Aliens Abroad.

jury duty pay given to your employer chapter 8.

contributions by certain ministers or chaplains to Internal

Revenue Code section 403(b) plans

Pub. 517, Social Security and Other Information for Members of

the Clergy and Religious Workers.

attorney fees and certain costs for actions involving IRS awards

to whistleblowers

Pub. 525.

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46 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2023)

Wages, Salaries,

and Other

Earnings

What’s New

Deferred compensation contribution limit

increased. If you participate in a 401(k) plan,

403(b) plan, or the federal government's Thrift

Savings Plan, the total annual amount you can

contribute is increased to $22,500 ($30,000 if

age 50 or older) for 2023. This also applies to

most 457 plans.

Health flexible spending arrangements

(health FSAs) under cafeteria plans. For tax

years beginning in 2023, the dollar limitation un-

der section 125(i) on voluntary employee salary

reductions for contributions to health FSAs is

$3,050.

Introduction

This chapter discusses compensation received

for services as an employee, such as wages,

salaries, and fringe benefits. The following top-

ics are included.

•

Bonuses and awards.

•

Special rules for certain employees.

•

Sickness and injury benefits.

The chapter explains what income is inclu-

ded and isn’t included in the employee's gross

income and what’s not included.

Useful Items

You may want to see:

Publication

463 Travel, Gift, and Car Expenses

502 Medical and Dental Expenses

524 Credit for the Elderly or the Disabled

525 Taxable and Nontaxable Income

526 Charitable Contributions

550 Investment Income and Expenses

554 Tax Guide for Seniors

575 Pension and Annuity Income

907 Tax Highlights for Persons With

Disabilities

926 Household Employer's Tax Guide

3920 Tax Relief for Victims of Terrorist

Attacks

For these and other useful items, go to IRS.gov/

Forms.

463

502

524

525

526

550

554

575

907

926

3920

Employee

Compensation

This section discusses various types of em-

ployee compensation, including fringe benefits,

retirement plan contributions, stock options,

and restricted property.

Form W-2. If you’re an employee, you should

receive a Form W-2 from your employer show-

ing the pay you received for your services. In-

clude your pay on Form 1040 or 1040-SR,

line 1a, even if you don’t receive a Form W-2.

In some instances, your employer isn’t re-

quired to give you a Form W-2. Your employer

isn’t required to give you a Form W-2 if you per-

form household work in your employer's home

for less than $2,600 in cash wages during the

calendar year and you have no federal income

taxes withheld from your wages. Household

work is work done in or around an employer's

home. Some examples of workers who do

household work are:

•

Babysitters,

•

Caretakers,

•

House cleaning workers,

•

Domestic workers,

•

Drivers,

•

Health aides,

•

Housekeepers,

•

Maids,

•

Nannies,

•

Private nurses, and

•

Yard workers.

See Schedule H (Form 1040), Household

Employment Taxes, and its instructions, and

Pub. 926 for more information.

If you performed services, other than as an

independent contractor, and your employer

didn’t withhold social security and Medicare

taxes from your pay, you must file Form 8919,

Uncollected Social Security and Medicare Tax

on Wages, with your Form 1040 or 1040-SR.

See Form 8919 and its instructions for more in-

formation on how to figure unreported wages

and taxes and how to include them on your in-

come tax return.

Childcare providers. If you provide childcare,

either in the child's home or in your home or

other place of business, the pay you receive

must be included in your income. If you aren’t

an employee, you’re probably self-employed

and must include payments for your services on

Schedule C (Form 1040), Profit or Loss From

Business. You generally aren’t an employee un-

less you’re subject to the will and control of the

person who employs you as to what you’re to do

and how you’re to do it.

Babysitting. If you’re paid to babysit, even

for relatives or neighborhood children, whether

on a regular basis or only periodically, the rules

for childcare providers apply to you.

Self-employment tax. Whether you're an em-

ployee or self-employed person, your income

could be subject to self-employment tax. See

the instructions for Schedules C and SE (Form

1040) if you're self-employed. Also, see Pub.

926 for more information.

Miscellaneous

Compensation

This section discusses different types of em-

ployee compensation.

Advance commissions and other earnings.

If you receive advance commissions or other

amounts for services to be performed in the fu-

ture and you’re a cash-method taxpayer, you

must include these amounts in your income in

the year you receive them.

If you repay unearned commissions or other

amounts in the same year you receive them, re-

duce the amount included in your income by the

repayment. If you repay them in a later tax year,

you can deduct the repayment as an itemized

deduction on your Schedule A (Form 1040),

line 16, or you may be able to take a credit for

that year. See Repayments in chapter 8.

Allowances and reimbursements. If you re-

ceive travel, transportation, or other business

expense allowances or reimbursements from

your employer, see Pub. 463, Travel, Gift, and

Car Expenses. If you’re a member of the military

and you’re reimbursed for moving expenses,

see Pub. 521, Moving Expenses.

Back pay awards. If you receive an amount in

payment of a settlement or judgment for back

pay, you must include the amount of the pay-

ment in your income. This includes payments

made to you for damages, unpaid life insurance

premiums, and unpaid health insurance premi-

ums. They should be reported to you by your

employer on Form W-2.

Bonuses and awards. If you receive a bonus

or award (cash, goods, services, etc.) from your

employer, you must include its value in your in-

come. However, if your employer merely prom-

ises to pay you a bonus or award at some future

time, it isn’t taxable until you receive it or it’s

made available to you.

Employee achievement award. If you re-

ceive tangible personal property (other than

cash, a gift certificate, or an equivalent item) as

an award for length of service or safety achieve-

ment, you can generally exclude its value from

your income. The amount you can exclude is

limited to your employer's cost and can’t be

more than $1,600 for qualified plan awards or

$400 for nonqualified plan awards for all such

awards you receive during the year. Your em-

ployer can tell you whether your award is a

qualified plan award. Your employer must make

the award as part of a meaningful presentation,

under conditions and circumstances that don’t

create a significant likelihood of it being dis-

guised pay.

However, the exclusion doesn’t apply to the

following awards.

•

A length-of-service award if you received it

for less than 5 years of service or if you re-

ceived another length-of-service award

during the year or the previous 4 years.

•

A safety achievement award if you’re a

manager, administrator, clerical employee,

or other professional employee or if more

than 10% of eligible employees previously

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Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 47

received safety achievement awards dur-

ing the year.

Example. You received three employee

achievement awards during the year: a nonqua-

lified plan award of a watch valued at $250, two

qualified plan awards of a stereo valued at

$1,000, and a set of golf clubs valued at $500.

Assuming that the requirements for qualified

plan awards are otherwise satisfied, each award

by itself would be excluded from income. How-

ever, because the $1,750 total value of the

awards is more than $1,600, you must include

$150 ($1,750 – $1,600) in your income.

Differential wage payments. This is any pay-

ment made to you by an employer for any pe-

riod during which you are, for a period of more

than 30 days, an active duty member of the uni-

formed services and represents all or a portion

of the wages you would have received from the

employer during that period. These payments

are treated as wages and are subject to income

tax withholding, but not FICA or FUTA taxes.

The payments are reported as wages on Form

W-2.

Government cost-of-living allowances.

Most payments received by U.S. Government

civilian employees for working abroad are taxa-

ble. However, certain cost-of-living allowances

are tax free. Pub. 516, U.S. Government Civilian

Employees Stationed Abroad, explains the tax

treatment of allowances, differentials, and other

special pay you receive for employment abroad.

Nonqualified deferred compensation plans.

Your employer may report to you the total

amount of deferrals for the year under a non-

qualified deferred compensation plan on Form

W-2, box 12, using code Y. This amount isn’t in-

cluded in your income.

However, if at any time during the tax year,

the plan fails to meet certain requirements, or

isn’t operated under those requirements, all

amounts deferred under the plan for the tax

year and all preceding tax years to the extent

vested and not previously included in income

are included in your income for the current year.

This amount is included in your wages shown

on Form W-2, box 1. It’s also shown on Form

W-2, box 12, using code Z.

Note received for services. If your employer

gives you a secured note as payment for your

services, you must include the fair market value

(usually the discount value) of the note in your

income for the year you receive it. When you

later receive payments on the note, a propor-

tionate part of each payment is the recovery of

the fair market value that you previously inclu-

ded in your income. Don’t include that part

again in your income. Include the rest of the

payment in your income in the year of payment.

If your employer gives you a nonnegotiable

unsecured note as payment for your services,

payments on the note that are credited toward

the principal amount of the note are compensa-

tion income when you receive them.

Severance pay. If you receive a severance

payment when your employment with your em-

ployer ends or is terminated, you must include

this amount in your income.

Accrued leave payment. If you’re a federal

employee and receive a lump-sum payment for

accrued annual leave when you retire or resign,

this amount will be included as wages on your

Form W-2.

If you resign from one agency and are reem-

ployed by another agency, you may have to re-

pay part of your lump-sum annual leave pay-

ment to the second agency. You can reduce

gross wages by the amount you repaid in the

same tax year in which you received it. Attach to

your tax return a copy of the receipt or state-

ment given to you by the agency you repaid to

explain the difference between the wages on

the return and the wages on your Forms W-2.

Outplacement services. If you choose to

accept a reduced amount of severance pay so

that you can receive outplacement services

(such as training in résumé writing and inter-

view techniques), you must include the unre-

duced amount of the severance pay in income.

Sick pay. Pay you receive from your employer

while you’re sick or injured is part of your salary

or wages. In addition, you must include in your

income sick pay benefits received from any of

the following payers.

•

A welfare fund.

•

A state sickness or disability fund.

•

An association of employers or employees.

•

An insurance company, if your employer

paid for the plan.

However, if you paid the premiums on an acci-

dent or health insurance policy yourself, the

benefits you receive under the policy aren’t tax-

able. For more information, see Pub. 525, Taxa-

ble and Nontaxable Income.

Social security and Medicare taxes paid by

employer. If you and your employer have an

agreement that your employer pays your social

security and Medicare taxes without deducting

them from your gross wages, you must report

the amount of tax paid for you as taxable wages

on your tax return. The payment is also treated

as wages for figuring your social security and

Medicare taxes and your social security and

Medicare benefits. However, these payments

aren’t treated as social security and Medicare

wages if you’re a household worker or a farm

worker.

Stock appreciation rights. Don’t include a

stock appreciation right granted by your em-

ployer in income until you exercise (use) the

right. When you use the right, you’re entitled to

a cash payment equal to the fair market value of

the corporation's stock on the date of use minus

the fair market value on the date the right was

granted. You include the cash payment in your

income in the year you use the right.

Fringe Benefits

Fringe benefits received in connection with the

performance of your services are included in

your income as compensation unless you pay

fair market value for them or they’re specifically

excluded by law. Refraining from the perform-

ance of services (for example, under a covenant

not to compete) is treated as the performance

of services for purposes of these rules.

Accounting period. You must use the same

accounting period your employer uses to report

your taxable noncash fringe benefits. Your em-

ployer has the option to report taxable noncash

fringe benefits by using either of the following

rules.

•

The general rule: benefits are reported for

a full calendar year (January 1–December

31).

•

The special accounting period rule: bene-

fits provided during the last 2 months of the

calendar year (or any shorter period) are

treated as paid during the following calen-

dar year. For example, each year your em-

ployer reports the value of benefits provi-

ded during the last 2 months of the prior

year and the first 10 months of the current

year.

Your employer doesn’t have to use the same ac-

counting period for each fringe benefit, but must

use the same period for all employees who re-

ceive a particular benefit.

You must use the same accounting period

that you use to report the benefit to claim an

employee business deduction (for use of a car,

for example).

Form W-2. Your employer must include all tax-

able fringe benefits in Form W-2, box 1, as wa-

ges, tips, and other compensation and, if appli-

cable, in boxes 3 and 5 as social security and

Medicare wages. Although not required, your

employer may include the total value of fringe

benefits in box 14 (or on a separate statement).

However, if your employer provided you with a

vehicle and included 100% of its annual lease

value in your income, the employer must sepa-

rately report this value to you in box 14 (or on a

separate statement).

Accident or Health Plan

In most cases, the value of accident or health

plan coverage provided to you by your employer

isn’t included in your income. Benefits you re-

ceive from the plan may be taxable, as ex-

plained later under Sickness and Injury Bene-

fits.

For information on the items covered in this

section, other than long-term care coverage,

see Pub. 969, Health Savings Accounts and

Other Tax-Favored Health Plans.

Long-term care coverage. Contributions by

your employer to provide coverage for long-term

care services generally aren’t included in your

income. However, contributions made through a

flexible spending or similar arrangement offered

by your employer must be included in your in-

come. This amount will be reported as wages in

Form W-2, box 1.

Contributions you make to the plan are dis-

cussed in Pub. 502, Medical and Dental Expen-

ses.

Archer MSA contributions. Contributions by

your employer to your Archer MSA generally

aren’t included in your income. Their total will be

reported in Form W-2, box 12, with code R. You

must report this amount on Form 8853, Archer

MSAs and Long-Term Care Insurance Con-

tracts. File the form with your return.

Health flexible spending arrangement

(health FSA). If your employer provides a

health FSA that qualifies as an accident or

health plan, the amount of your salary

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48 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2023)

reduction, and reimbursements of your medical

care expenses, in most cases, aren’t included in

your income.

Note. Health FSAs are subject to a limit on

salary reduction contributions for plan years be-

ginning after 2012. For tax years beginning in

2023, the dollar limitation (as indexed for infla-

tion) on voluntary employee salary reductions

for contributions to health FSAs is $3,050.

Health reimbursement arrangement (HRA).

If your employer provides an HRA that qualifies

as an accident or health plan, coverage and re-

imbursements of your medical care expenses

generally aren’t included in your income.

Health savings account (HSA). If you’re an

eligible individual, you and any other person, in-

cluding your employer or a family member, can

make contributions to your HSA. Contributions,

other than employer contributions, are deducti-

ble on your return whether or not you itemize

deductions. Contributions made by your em-

ployer aren’t included in your income. Distribu-

tions from your HSA that are used to pay quali-

fied medical expenses aren’t included in your

income. Distributions not used for qualified

medical expenses are included in your income.

See Pub. 969 for the requirements of an HSA.

Contributions by a partnership to a bona fide

partner's HSA aren’t contributions by an em-

ployer. The contributions are treated as a distri-

bution of money and aren’t included in the part-

ner's gross income. Contributions by a

partnership to a partner's HSA for services ren-

dered are treated as guaranteed payments that

are includible in the partner's gross income. In

both situations, the partner can deduct the con-

tribution made to the partner's HSA.

Contributions by an S corporation to a 2%

shareholder-employee's HSA for services ren-

dered are treated as guaranteed payments and

are includible in the shareholder-employee's

gross income. The shareholder-employee can

deduct the contribution made to the share-

holder-employee's HSA.

Qualified HSA funding distribution. You

can make a one-time distribution from your indi-

vidual retirement account (IRA) to an HSA and

you generally won’t include any of the distribu-

tion in your income.

Adoption Assistance

You may be able to exclude from your income

amounts paid or expenses incurred by your em-

ployer for qualified adoption expenses in con-

nection with your adoption of an eligible child.

See the Instructions for Form 8839, Qualified

Adoption Expenses, for more information.

Adoption benefits are reported by your em-

ployer in Form W-2, box 12, with code T. They

are also included as social security and Medi-

care wages in boxes 3 and 5. However, they

aren’t included as wages in box 1. To determine

the taxable and nontaxable amounts, you must

complete Part III of Form 8839. File the form

with your return.

De Minimis (Minimal) Benefits

If your employer provides you with a product or

service and the cost of it is so small that it would

be unreasonable for the employer to account for

it, you generally don’t include its value in your

income. In most cases, don’t include in your in-

come the value of discounts at company cafete-

rias, cab fares home when working overtime,

and company picnics.

Holiday gifts. If your employer gives you a tur-

key, ham, or other item of nominal value at

Christmas or other holidays, don’t include the

value of the gift in your income. However, if your

employer gives you cash or a cash equivalent,

you must include it in your income.

Educational Assistance

You can exclude from your income up to $5,250

of qualified employer-provided educational as-

sistance. For more information, see Pub. 970,

Tax Benefits for Education.

Group-Term Life Insurance

In most cases, the cost of up to $50,000 of

group-term life insurance coverage provided to

you by your employer (or former employer) isn’t

included in your income. However, you must in-

clude in income the cost of employer-provided

insurance that is more than the cost of $50,000

of coverage reduced by any amount you pay to-

ward the purchase of the insurance.

For exceptions, see Entire cost excluded

and Entire cost taxed, later.

If your employer provided more than

$50,000 of coverage, the amount included in

your income is reported as part of your wages in

Form W-2, box 1. Also, it’s shown separately in

box 12 with code C.

Group-term life insurance. This insurance is

term life insurance protection (insurance for a

fixed period of time) that:

•

Provides a general death benefit,

•

Is provided to a group of employees,

•

Is provided under a policy carried by the

employer, and

•

Provides an amount of insurance to each

employee based on a formula that prevents

individual selection.

Permanent benefits. If your group-term life

insurance policy includes permanent benefits,

such as a paid-up or cash surrender value, you

must include in your income, as wages, the cost

of the permanent benefits minus the amount

you pay for them. Your employer should be able

to tell you the amount to include in your income.

Accidental death benefits. Insurance that

provides accidental or other death benefits but

doesn’t provide general death benefits (travel

insurance, for example) isn’t group-term life in-

surance.

Former employer. If your former employer

provided more than $50,000 of group-term life

insurance coverage during the year, the amount

included in your income is reported as wages in

Form W-2, box 1. Also, it’s shown separately in

box 12 with code C. Box 12 will also show the

amount of uncollected social security and Medi-

care taxes on the excess coverage, with codes

M and N. You must pay these taxes with your in-

come tax return. Include them on Schedule 2

(Form 1040), line 13.

Two or more employers. Your exclusion for

employer-provided group-term life insurance

coverage can’t exceed the cost of $50,000 of

coverage, whether the insurance is provided by

a single employer or multiple employers. If two

or more employers provide insurance coverage

that totals more than $50,000, the amounts re-

ported as wages on your Forms W-2 won’t be

correct. You must figure how much to include in

your income. Reduce the amount you figure by

any amount reported in Form W-2, box 12, with

code C, add the result to the wages reported in

box 1, and report the total on your return.

Figuring the taxable cost. Use Worksheet

5-1 to figure the amount to include in your in-

come.

Worksheet 5-1. Figuring the

Cost of Group-Term Life

Insurance To Include in

Income

Keep for Your Records

1. Enter the total amount of

your insurance coverage

from your

employer(s) ............ 1.

2. Limit on exclusion for

employer-provided

group-term life insurance

coverage .............. 2.

50,000

3. Subtract line 2 from

line 1 ................. 3.

4. Divide line 3 by $1,000.

Figure to the nearest

tenth ................. 4.

5. Go to Table 5-1. Using your

age on the last day of the tax

year, find your age group in

the left column, and enter the

cost from the column on the

right for your age

group ................ 5.

6. Multiply line 4 by

line 5 ................. 6.

7. Enter the number of full

months of coverage at this

cost .................. 7.

8. Multiply line 6 by

line 7 ................. 8.

9. Enter the

premiums you paid

per month ..... 9.

10.

Enter the number

of months you paid

the

premiums .....

10.

11.

Multiply line 9 by

line 10 ................

11.

12.

Subtract line 11 from line 8.

Include this amount in

your income as

wages ...............

12.

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Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 49

Table 5-1. Cost of $1,000 of

Group-Term Life Insurance for 1

Month

Age Cost

Under 25 ................. $0.05

25 through 29 .............. 0.06

30 through 34 .............. 0.08

35 through 39 .............. 0.09

40 through 44 .............. 0.10

45 through 49 .............. 0.15

50 through 54 .............. 0.23

55 through 59 .............. 0.43

60 through 64 .............. 0.66

65 through 69 .............. 1.27

70 and above .............. 2.06

Example. You are 51 years old and work

for employers A and B. Both employers provide

group-term life insurance coverage for you for

the entire year. Your coverage is $35,000 with

employer A and $45,000 with employer B. You

pay premiums of $4.15 a month under the em-

ployer B group plan. You figure the amount to

include in your income as shown in Worksheet

5-1. Figuring the Cost of Group-Term Life Insur-

ance To Include in Income—Illustrated next.

Worksheet 5-1. Figuring the

Cost of Group-Term Life

Insurance To Include in

Income—Illustrated

Keep for Your Records

1. Enter the total amount of

your insurance coverage

from your

employer(s) ............ 1.

80,000

2. Limit on exclusion for

employer-provided

group-term life insurance

coverage .............. 2.

50,000

3. Subtract line 2 from

line 1 ................. 3.

30,000

4. Divide line 3 by $1,000.

Figure to the nearest

tenth ................. 4.

30.0

5. Go to Table 5-1. Using your

age on the last day of the tax

year, find your age group in

the left column, and enter the

cost from the column on the

right for your age

group ................ 5.

0.23

6. Multiply line 4 by

line 5 ................. 6.

6.90

7. Enter the number of full

months of coverage at this

cost .................. 7.

8. Multiply line 6 by

line 7 ................. 8.

82.80

9. Enter the

premiums you paid

per month ..... 9.

4.15

10.

Enter the number

of months you paid

the

premiums .....

10.

11.

Multiply line 9 by

line 10 ................

11.

49.80

12.

Subtract line 11 from line 8.

Include this amount in

your income as

wages ...............

12.

33.00

Entire cost excluded. You aren’t taxed on the

cost of group-term life insurance if any of the fol-

lowing circumstances apply.

1. You’re permanently and totally disabled

and have ended your employment.

2. Your employer is the beneficiary of the pol-

icy for the entire period the insurance is in

force during the tax year.

3. A charitable organization (defined in Pub.

526, Charitable Contributions) to which

contributions are deductible is the only

beneficiary of the policy for the entire pe-

riod the insurance is in force during the tax

year. (You aren’t entitled to a deduction for

a charitable contribution for naming a

charitable organization as the beneficiary

of your policy.)

4. The plan existed on January 1, 1984, and:

a. You retired before January 2, 1984,

and were covered by the plan when

you retired, or

b. You reached age 55 before January 2,

1984, and were employed by the em-

ployer or its predecessor in 1983.

Entire cost taxed. You’re taxed on the entire

cost of group-term life insurance if either of the

following circumstances apply.

•

The insurance is provided by your em-

ployer through a qualified employees' trust,

such as a pension trust or a qualified annu-

ity plan.

•

You're a key employee and your employer's

plan discriminates in favor of key employ-

ees.

Retirement Planning Services

Generally, don’t include the value of qualified re-

tirement planning services provided to you and

your spouse by your employer's qualified retire-

ment plan. Qualified services include retirement

planning advice, information about your em-

ployer's retirement plan, and information about

how the plan may fit into your overall individual

retirement income plan. You can’t exclude the

value of any tax preparation, accounting, legal,

or brokerage services provided by your em-

ployer.

Transportation

If your employer provides you with a qualified

transportation fringe benefit, it can be excluded

from your income, up to certain limits. A quali-

fied transportation fringe benefit is:

•

Transportation in a commuter highway ve-

hicle (such as a van) between your home

and work place,

•

A transit pass, or

•

Qualified parking.

Cash reimbursement by your employer for these

expenses under a bona fide reimbursement ar-

rangement is also excludable. However, cash

reimbursement for a transit pass is excludable

only if a voucher or similar item that can be ex-

changed only for a transit pass isn’t readily

available for direct distribution to you.

Exclusion limit. The exclusion for commuter

vehicle transportation and transit pass fringe

benefits can’t be more than $300 a month.

The exclusion for the qualified parking fringe

benefit can’t be more than $300 a month.

If the benefits have a value that is more than

these limits, the excess must be included in

your income.

Commuter highway vehicle. This is a high-

way vehicle that seats at least six adults (not in-

cluding the driver). At least 80% of the vehicle's

mileage must reasonably be expected to be:

•

For transporting employees between their

homes and workplace, and

•

On trips during which employees occupy at

least half of the vehicle's adult seating ca-

pacity (not including the driver).

Transit pass. This is any pass, token, farecard,

voucher, or similar item entitling a person to ride

mass transit (whether public or private) free or

at a reduced rate or to ride in a commuter high-

way vehicle operated by a person in the busi-

ness of transporting persons for compensation.

Qualified parking. This is parking provided to

an employee at or near the employer's place of

business. It also includes parking provided on

or near a location from which the employee

commutes to work by mass transit, in a com-

muter highway vehicle, or by carpool. It doesn’t

include parking at or near the employee's home.

Retirement Plan

Contributions

Your employer's contributions to a qualified re-

tirement plan for you aren’t included in income

at the time contributed. (Your employer can tell

you whether your retirement plan is qualified.)

However, the cost of life insurance coverage in-

cluded in the plan may have to be included. See

Group-Term Life Insurance, earlier, under

Fringe Benefits.

If your employer pays into a nonqualified

plan for you, you must generally include the

contributions in your income as wages for the

tax year in which the contributions are made.

However, if your interest in the plan isn’t trans-

ferable or is subject to a substantial risk of for-

feiture (you have a good chance of losing it) at

the time of the contribution, you don’t have to in-

clude the value of your interest in your income

until it’s transferable or is no longer subject to a

substantial risk of forfeiture.

For information on distributions from re-

tirement plans, see Pub. 575, Pension

and Annuity Income (or Pub. 721, Tax

Guide to U.S. Civil Service Retirement Benefits,

if you’re a federal employee or retiree).

Elective deferrals. If you’re covered by certain

kinds of retirement plans, you can choose to

have part of your compensation contributed by

your employer to a retirement fund, rather than

have it paid to you. The amount you set aside

(called an “elective deferral”) is treated as an

employer contribution to a qualified plan. An

elective deferral, other than a designated Roth

contribution (discussed later), isn’t included in

wages subject to income tax at the time

TIP

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50 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2023)

contributed. Rather, it’s subject to income tax

when distributed from the plan. However, it’s in-

cluded in wages subject to social security and

Medicare taxes at the time contributed.

Elective deferrals include elective contribu-

tions to the following retirement plans.

1. Cash or deferred arrangements (section

401(k) plans).

2. The Thrift Savings Plan for federal employ-

ees.

3. Salary reduction simplified employee pen-

sion plans (SARSEP).

4. Savings incentive match plans for employ-

ees (SIMPLE plans).

5. Tax-sheltered annuity plans (section

403(b) plans).

6. Section 501(c)(18)(D) plans.

7. Section 457 plans.

Qualified automatic contribution arrange-

ments. Under a qualified automatic contribu-

tion arrangement, your employer can treat you

as having elected to have a part of your com-

pensation contributed to a section 401(k) plan.

You are to receive written notice of your rights

and obligations under the qualified automatic

contribution arrangement. The notice must ex-

plain:

•

Your rights to elect not to have elective

contributions made, or to have contribu-

tions made at a different percentage; and

•

How contributions made will be invested in

the absence of any investment decision by

you.

You must be given a reasonable period of

time after receipt of the notice and before the

first elective contribution is made to make an

election with respect to the contributions.

Overall limit on deferrals. For 2023, in

most cases, you shouldn’t have deferred more

than a total of $22,500 of contributions to the

plans listed in (1) through (3) and (5) above.

The limit for SIMPLE plans is $15,500. The limit

for section 501(c)(18)(D) plans is the lesser of

$7,000 or 25% of your compensation. The limit

for section 457 plans is the lesser of your in-

cludible compensation or $22,500. Amounts

deferred under specific plan limits are part of

the overall limit on deferrals.

Designated Roth contributions. Employ-

ers with section 401(k) plans, section 403(b)

plans, and governmental section 457 plans can

create qualified Roth contribution programs so

that you may elect to have part or all of your

elective deferrals to the plan designated as af-

ter-tax Roth contributions. Designated Roth

contributions are treated as elective deferrals,

except that they’re included in income at the

time contributed.

Excess deferrals. Your employer or plan

administrator should apply the proper annual

limit when figuring your plan contributions. How-

ever, you’re responsible for monitoring the total

you defer to ensure that the deferrals aren’t

more than the overall limit.

If you set aside more than the limit, the ex-

cess must generally be included in your income

for that year, unless you have an excess deferral

of a designated Roth contribution. See Pub. 525

for a discussion of the tax treatment of excess

deferrals.

Catch-up contributions. You may be al-

lowed catch-up contributions (additional elec-

tive deferral) if you’re age 50 or older by the end

of the tax year.

Stock Options

If you receive a nonstatutory option to buy or

sell stock or other property as payment for your

services, you will usually have income when

you receive the option, when you exercise the

option (use it to buy or sell the stock or other

property), or when you sell or otherwise dispose

of the option. However, if your option is a statu-

tory stock option, you won’t have any income

until you sell or exchange your stock. Your em-

ployer can tell you which kind of option you

hold. For more information, see Pub. 525.

Restricted Property

In most cases, if you receive property for your

services, you must include its fair market value

in your income in the year you receive the prop-

erty. However, if you receive stock or other

property that has certain restrictions that affect

its value, you don’t include the value of the

property in your income until it has substantially

vested. (Although you can elect to include the

value of the property in your income in the year

it’s transferred to you.) For more information,

see Restricted Property in Pub. 525.

Dividends received on restricted stock.

Dividends you receive on restricted stock are

treated as compensation and not as dividend

income. Your employer should include these

payments on your Form W-2.

Stock you elected to include in income.

Dividends you receive on restricted stock you

elected to include in your income in the year

transferred are treated the same as any other

dividends. Report them on your return as divi-

dends. For a discussion of dividends, see Pub.

550, Investment Income and Expenses.

For information on how to treat dividends re-

ported on both your Form W-2 and Form

1099-DIV, see Dividends received on restricted

stock in Pub. 525.

Special Rules for

Certain Employees

This section deals with special rules for people

in certain types of employment: members of the

clergy, members of religious orders, people

working for foreign employers, military person-

nel, and volunteers.

Clergy

Generally, if you’re a member of the clergy, you

must include in your income offerings and fees

you receive for marriages, baptisms, funerals,

masses, etc., in addition to your salary. If the of-

fering is made to the religious institution, it isn’t

taxable to you.

If you’re a member of a religious organiza-

tion and you give your outside earnings to the

religious organization, you must still include the

earnings in your income. However, you may be

entitled to a charitable contribution deduction

for the amount paid to the organization. See

Pub. 526.

Pension. A pension or retirement pay for a

member of the clergy is usually treated as any

other pension or annuity. It must be reported on

lines 5a and 5b of Form 1040 or 1040-SR.

Housing. Special rules for housing apply to

members of the clergy. Under these rules, you

don’t include in your income the rental value of

a home (including utilities) or a designated

housing allowance provided to you as part of

your pay. However, the exclusion can’t be more

than the reasonable pay for your services. If you

pay for the utilities, you can exclude any allow-

ance designated for utility cost, up to your ac-

tual cost. The home or allowance must be provi-

ded as compensation for your services as an

ordained, licensed, or commissioned minister.

However, you must include the rental value of

the home or the housing allowance as earnings

from self-employment on Schedule SE (Form

1040) if you’re subject to the self-employment

tax. For more information, see Pub. 517, Social

Security and Other Information for Members of

the Clergy and Religious Workers.

Members of Religious

Orders

If you’re a member of a religious order who has

taken a vow of poverty, how you treat earnings

that you renounce and turn over to the order de-

pends on whether your services are performed

for the order.

Services performed for the order. If you’re

performing the services as an agent of the order

in the exercise of duties required by the order,

don’t include in your income the amounts turned

over to the order.

If your order directs you to perform services

for another agency of the supervising church or

an associated institution, you’re considered to

be performing the services as an agent of the

order. Any wages you earn as an agent of an or-

der that you turn over to the order aren’t inclu-

ded in your income.

Example. You’re a member of a church or-

der and have taken a vow of poverty. You re-

nounce any claims to your earnings and turn

over to the order any salaries or wages you

earn. You’re a registered nurse, so your order

assigns you to work in a hospital that is an as-

sociated institution of the church. However, you

remain under the general direction and control

of the order. You’re considered to be an agent of

the order and any wages you earn at the hospi-

tal that you turn over to your order aren’t inclu-

ded in your income.

Services performed outside the order. If

you’re directed to work outside the order, your

services aren’t an exercise of duties required by

the order unless they meet both of the following

requirements.

•

They’re the kind of services that are ordina-

rily the duties of members of the order.

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Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 51

•

They’re part of the duties that you must ex-

ercise for, or on behalf of, the religious or-

der as its agent.

If you’re an employee of a third party, the serv-

ices you perform for the third party won’t be

considered directed or required of you by the

order. Amounts you receive for these services

are included in your income, even if you have

taken a vow of poverty.

Example. You are a member of a religious

order and have taken a vow of poverty. You re-

nounce all claims to your earnings and turn over

your earnings to the order.

You are a schoolteacher. You were instruc-

ted by the superiors of the order to get a job

with a private tax-exempt school. You became

an employee of the school, and, at your re-

quest, the school made the salary payments di-

rectly to the order.

Because you are an employee of the school,

you’re performing services for the school rather

than as an agent of the order. The wages you

earn working for the school are included in your

income.

Foreign Employer

Special rules apply if you work for a foreign em-

ployer.

U.S. citizen. If you’re a U.S. citizen who works

in the United States for a foreign government,

an international organization, a foreign em-

bassy, or any foreign employer, you must in-

clude your salary in your income.

Social security and Medicare taxes.

You’re exempt from social security and Medi-

care employee taxes if you’re employed in the

United States by an international organization or

a foreign government. However, you must pay

self-employment tax on your earnings from

services performed in the United States, even

though you aren’t self-employed. This rule also

applies if you’re an employee of a qualifying

wholly owned instrumentality of a foreign gov-

ernment.

Employees of international organizations or

foreign governments. Your compensation for

official services to an international organization

is exempt from federal income tax if you aren’t a

citizen of the United States or you’re a citizen of

the Philippines (whether or not you’re a citizen

of the United States).

Your compensation for official services to a

foreign government is exempt from federal in-

come tax if all of the following are true.

•

You aren’t a citizen of the United States or

you’re a citizen of the Philippines (whether

or not you’re a citizen of the United States).

•

Your work is like the work done by employ-

ees of the United States in foreign coun-

tries.

•

The foreign government gives an equal ex-

emption to employees of the United States

in its country.

Waiver of alien status. If you’re an alien

who works for a foreign government or interna-

tional organization and you file a waiver under

section 247(b) of the Immigration and National-

ity Act to keep your immigrant status, different

rules may apply. See Foreign Employer in Pub.

525.

Employment abroad. For information on the

tax treatment of income earned abroad, see

Pub. 54.

Military

Payments you receive as a member of a military

service are generally taxed as wages except for

retirement pay, which is taxed as a pension. Al-

lowances generally aren’t taxed. For more infor-

mation on the tax treatment of military allowan-

ces and benefits, see Pub. 3, Armed Forces'

Tax Guide.

Differential wage payments. Any payments

made to you by an employer during the time

you’re performing service in the uniformed serv-

ices are treated as compensation. These wages

are subject to income tax withholding and are

reported on a Form W-2. See the discussion

under Miscellaneous Compensation, earlier.

Military retirement pay. If your retirement pay

is based on age or length of service, it’s taxable

and must be included in your income as a pen-

sion on lines 5a and 5b of Form 1040 or

1040-SR. Don’t include in your income the

amount of any reduction in retirement or re-

tainer pay to provide a survivor annuity for your

spouse or children under the Retired Service-

man's Family Protection Plan or the Survivor

Benefit Plan.

For more detailed discussion of survivor an-

nuities, see Pub. 575, Pension and Annuity In-

come.

Disability. If you’re retired on disability, see

Military and Government Disability Pensions un-

der Sickness and Injury Benefits, later.

Veterans' benefits. Don’t include in your in-

come any veterans' benefits paid under any law,

regulation, or administrative practice adminis-

tered by the Department of Veterans Affairs

(VA). The following amounts paid to veterans or

their families aren’t taxable.

•

Education, training, and subsistence allow-

ances.

•

Disability compensation and pension pay-

ments for disabilities paid either to veter-

ans or their families.

•

Grants for homes designed for wheelchair

living.

•

Grants for motor vehicles for veterans who

lost their sight or the use of their limbs.

•

Veterans' insurance proceeds and divi-

dends paid either to veterans or their bene-

ficiaries, including the proceeds of a veter-

an's endowment policy paid before death.

•

Interest on insurance dividends you leave

on deposit with the VA.

•

Benefits under a dependent-care assis-

tance program.

•

The death gratuity paid to a survivor of a

member of the Armed Forces who died af-

ter September 10, 2001.

•

Payments made under the compensated

work therapy program.

•

Any bonus payment by a state or political

subdivision because of service in a combat

zone.

Volunteers

The tax treatment of amounts you receive as a

volunteer worker for the Peace Corps or similar

agency is covered in the following discussions.

Peace Corps. Living allowances you receive

as a Peace Corps volunteer or volunteer leader

for housing, utilities, household supplies, food,

and clothing are generally exempt from tax.

Taxable allowances. The following allow-

ances, however, must be included in your in-

come and reported as wages.

•

Allowances paid to your spouse and minor

children while you’re a volunteer leader

training in the United States.

•

Living allowances designated by the Direc-

tor of the Peace Corps as basic compen-

sation. These are allowances for personal

items such as domestic help, laundry and

clothing maintenance, entertainment and

recreation, transportation, and other mis-

cellaneous expenses.

•

Leave allowances.

•

Readjustment allowances or termination

payments. These are considered received

by you when credited to your account.

Example. You are a Peace Corps volun-

teer and get $175 a month as a readjustment al-

lowance during your period of service, to be

paid to you in a lump sum at the end of your tour

of duty. Although the allowance isn’t available to

you until the end of your service, you must in-

clude it in your income on a monthly basis as it’s

credited to your account.

Volunteers in Service to America (VISTA). If

you’re a VISTA volunteer, you must include meal

and lodging allowances paid to you in your in-

come as wages.

National Senior Services Corps programs.

Don’t include in your income amounts you re-

ceive for supportive services or reimbursements

for out-of-pocket expenses from the following

programs.

•

Retired Senior Volunteer Program (RSVP).

•

Foster Grandparent Program.

•

Senior Companion Program.

Service Corps of Retired Executives

(SCORE). If you receive amounts for suppor-

tive services or reimbursements for

out-of-pocket expenses from SCORE, don’t in-

clude these amounts in gross income.

Volunteer tax counseling. Don’t include in

your income any reimbursements you receive

for transportation, meals, and other expenses

you have in training for, or actually providing,

volunteer federal income tax counseling for the

elderly (TCE).

You can deduct as a charitable contribution

your unreimbursed out-of-pocket expenses in

taking part in the volunteer income tax assis-

tance (VITA) program. See Pub. 526.

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52 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2023)

Volunteer firefighters and emergency medi-

cal responders. If you are a volunteer fire-

fighter or emergency medical responder, don’t

include in your income the following benefits

you receive from a state or local government.

•

Rebates or reductions of property or in-

come taxes you receive because of serv-

ices you performed as a volunteer fire-

fighter or emergency medical responder.

•

Payments you receive because of services

you performed as a volunteer firefighter or

emergency medical responder, up to $50

for each month you provided services.

The excluded income reduces any related tax

or contribution deduction.

Sickness and Injury

Benefits

This section discusses sickness and injury ben-

efits, including disability pensions, long-term

care insurance contracts, workers' compensa-

tion, and other benefits.

In most cases, you must report as income

any amount you receive for personal injury or

sickness through an accident or health plan that

is paid for by your employer. If both you and

your employer pay for the plan, only the amount

you receive that is due to your employer's pay-

ments is reported as income. However, certain

payments may not be taxable to you. For infor-

mation on nontaxable payments, see Military

and Government Disability Pensions and Other

Sickness and Injury Benefits, later in this dis-

cussion.

Don’t report as income any amounts

paid to reimburse you for medical ex-

penses you incurred after the plan was

established.

Cost paid by you. If you pay the entire cost of

a health or accident insurance plan, don’t in-

clude any amounts you receive from the plan for

personal injury or sickness as income on your

tax return. If your plan reimbursed you for medi-

cal expenses you deducted in an earlier year,

you may have to include some, or all, of the re-

imbursement in your income. See What if You

Receive Insurance Reimbursement in a Later

Year? in Pub. 502, Medical and Dental Expen-

ses.

Cafeteria plans. In most cases, if you’re cov-

ered by an accident or health insurance plan

through a cafeteria plan, and the amount of the

insurance premiums wasn’t included in your in-

come, you aren’t considered to have paid the

premiums and you must include any benefits

you receive in your income. If the amount of the

premiums was included in your income, you’re

considered to have paid the premiums, and any

benefits you receive aren’t taxable.

Disability Pensions

If you retired on disability, you must include in

income any disability pension you receive under

a plan that is paid for by your employer. You

must report your taxable disability payments on

line 1h of Form 1040 or 1040-SR until you reach

minimum retirement age. Minimum retirement

TIP

age is generally the age at which you can first

receive a pension or annuity if you’re not disa-

bled.

You may be entitled to a tax credit if

you were permanently and totally disa-

bled when you retired. For information

on this credit and the definition of permanent

and total disability, see Pub. 524, Credit for the

Elderly or the Disabled.

Beginning on the day after you reach mini-

mum retirement age, payments you receive are

taxable as a pension or annuity. Report the pay-

ments on lines 5a and 5b of Form 1040 or

1040-SR. The rules for reporting pensions are

explained in Disability Pensions in Pub. 575.

For information on disability payments from

a governmental program provided as a substi-

tute for unemployment compensation, see Un-

employment Benefits in chapter 8.

Retirement and profit-sharing plans. If you

receive payments from a retirement or

profit-sharing plan that doesn’t provide for disa-

bility retirement, don’t treat the payments as a

disability pension. The payments must be re-

ported as a pension or annuity. For more infor-

mation on pensions, see Pub. 575.

Accrued leave payment. If you retire on disa-

bility, any lump-sum payment you receive for ac-

crued annual leave is a salary payment. The

payment is not a disability payment. Include it in

your income in the tax year you receive it.

Military and Government

Disability Pensions

Certain military and government disability pen-

sions aren’t taxable.

Service-connected disability. You may be

able to exclude from income amounts you re-

ceive as a pension, annuity, or similar allowance

for personal injury or sickness resulting from ac-

tive service in one of the following government

services.

•

The armed forces of any country.

•

The National Oceanic and Atmospheric

Administration.

•

The Public Health Service.

•

The Foreign Service.

Conditions for exclusion. Don’t include the

disability payments in your income if any of the

following conditions apply.

1. You were entitled to receive a disability

payment before September 25, 1975.

2. You were a member of a listed government

service or its reserve component, or were

under a binding written commitment to be-

come a member, on September 24, 1975.

3. You receive the disability payments for a

combat-related injury. This is a personal

injury or sickness that:

a. Results directly from armed conflict;

b. Takes place while you’re engaged in

extra-hazardous service;

c. Takes place under conditions simulat-

ing war, including training exercises

such as maneuvers; or

TIP

d. Is caused by an instrumentality of war.

4. You would be entitled to receive disability

compensation from the Department of Vet-

erans Affairs (VA) if you filed an applica-

tion for it. Your exclusion under this condi-

tion is equal to the amount you would be

entitled to receive from the VA.

Pension based on years of service. If you

receive a disability pension based on years of

service, in most cases you must include it in

your income. However, if the pension qualifies

for the exclusion for a service-connected disa-

bility (discussed earlier), don’t include in income

the part of your pension that you would have re-

ceived if the pension had been based on a per-

centage of disability. You must include the rest

of your pension in your income.

Retroactive VA determination. If you retire

from the armed services based on years of

service and are later given a retroactive serv-

ice-connected disability rating by the VA, your

retirement pay for the retroactive period is ex-

cluded from income up to the amount of VA dis-

ability benefits you would have been entitled to

receive. You can claim a refund of any tax paid

on the excludable amount (subject to the statute

of limitations) by filing an amended return on

Form 1040-X for each previous year during the

retroactive period. You must include with each

Form 1040-X a copy of the official VA determi-

nation letter granting the retroactive benefit. The

letter must show the amount withheld and the

effective date of the benefit.

If you receive a lump-sum disability sever-

ance payment and are later awarded VA disabil-

ity benefits, exclude 100% of the severance

benefit from your income. However, you must

include in your income any lump-sum readjust-

ment or other nondisability severance payment

you received on release from active duty, even if

you’re later given a retroactive disability rating

by the VA.

Special period of limitation. In most ca-

ses, under the period of limitation, a claim for

credit or refund must be filed within 3 years from

the time a return was filed or 2 years from the

time the tax was paid. However, if you receive a

retroactive service-connected disability rating

determination, the period of limitation is exten-

ded by a 1-year period beginning on the date of

the determination. This 1-year extended period

applies to claims for credit or refund filed after

June 17, 2008, and doesn’t apply to any tax

year that began more than 5 years before the

date of the determination.

Terrorist attack or military action. Don’t in-

clude in your income disability payments you re-

ceive for injuries incurred as a direct result of a

terrorist attack or military action directed against

the United States (or its allies), whether outside

or within the United States or from military ac-

tion. See Pub. 3920 and Pub. 907 for more in-

formation.

Long-Term Care

Insurance Contracts

Long-term care insurance contracts in most ca-

ses are treated as accident and health insur-

ance contracts. Amounts you receive from them

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Publication 17 (2023) Chapter 5 Wages, Salaries, and Other Earnings 53

(other than policyholder dividends or premium

refunds) in most cases are excludable from in-

come as amounts received for personal injury

or sickness. To claim an exclusion for payments

made on a per diem or other periodic basis un-

der a long-term care insurance contract, you

must file Form 8853 with your return.

A long-term care insurance contract is an in-

surance contract that only provides coverage

for qualified long-term care services. The con-

tract must:

•

Be guaranteed renewable;

•

Not provide for a cash surrender value or

other money that can be paid, assigned,

pledged, or borrowed;

•

Provide that refunds, other than refunds on

the death of the insured or complete sur-

render or cancellation of the contract, and

dividends under the contract, may only be

used to reduce future premiums or in-

crease future benefits; and

•

In most cases, not pay or reimburse expen-

ses incurred for services or items that

would be reimbursed under Medicare, ex-

cept where Medicare is a secondary payer

or the contract makes per diem or other

periodic payments without regard to ex-

penses.

Qualified long-term care services. Qualified

long-term care services are:

•

Necessary diagnostic, preventive, thera-

peutic, curing, treating, mitigating, and re-

habilitative services, and maintenance and

personal care services; and

•

Required by a chronically ill individual and

provided pursuant to a plan of care prescri-

bed by a licensed health care practitioner.

Chronically ill individual. A chronically ill indi-

vidual is one who has been certified by a li-

censed health care practitioner within the previ-

ous 12 months as one of the following.

•

An individual who, for at least 90 days, is

unable to perform at least two activities of

daily living without substantial assistance

due to loss of functional capacity. Activities

of daily living are eating, toileting, transfer-

ring, bathing, dressing, and continence.

•

An individual who requires substantial su-

pervision to be protected from threats to

health and safety due to severe cognitive

impairment.

Limit on exclusion. You can generally exclude

from gross income up to $420 a day for 2023.

See Limit on exclusion, under Long-Term Care

Insurance Contracts, under Sickness and Injury

Benefits in Pub. 525 for more information.

Workers' Compensation

Amounts you receive as workers' compensation

for an occupational sickness or injury are fully

exempt from tax if they’re paid under a workers'

compensation act or a statute in the nature of a

workers' compensation act. The exemption also

applies to your survivors. The exemption, how-

ever, doesn’t apply to retirement plan benefits

you receive based on your age, length of serv-

ice, or prior contributions to the plan, even if you

retired because of an occupational sickness or

injury.

If part of your workers' compensation

reduces your social security or equiva-

lent railroad retirement benefits re-

ceived, that part is considered social security

(or equivalent railroad retirement) benefits and

may be taxable. For more information, see Pub.

915, Social Security and Equivalent Railroad

Retirement Benefits.

Return to work. If you return to work after

qualifying for workers' compensation, salary

payments you receive for performing light duties

are taxable as wages.

Other Sickness and Injury

Benefits

In addition to disability pensions and annuities,

you may receive other payments for sickness or

injury.

Railroad sick pay. Payments you receive as

sick pay under the Railroad Unemployment In-

surance Act are taxable and you must include

them in your income. However, don’t include

them in your income if they’re for an on-the-job

injury.

If you received income because of a disabil-

ity, see Disability Pensions, earlier.

Federal Employees' Compensation Act

(FECA). Payments received under this Act for

personal injury or sickness, including payments

to beneficiaries in case of death, aren’t taxable.

However, you’re taxed on amounts you receive

under this Act as continuation of pay for up to

45 days while a claim is being decided. Report

this income as wages. Also, pay for sick leave

while a claim is being processed is taxable and

must be included in your income as wages.

If part of the payments you receive un-

der FECA reduces your social security

or equivalent railroad retirement bene-

fits received, that part is considered social se-

curity (or equivalent railroad retirement) benefits

and may be taxable. See Pub. 554 for more in-

formation.

Other compensation. Many other amounts

you receive as compensation for sickness or in-

jury aren’t taxable. These include the following

amounts.

•

Compensatory damages you receive for

physical injury or physical sickness,

whether paid in a lump sum or in periodic

payments.

•

Benefits you receive under an accident or

health insurance policy on which either you

paid the premiums or your employer paid

the premiums but you had to include them

in your income.

•

Disability benefits you receive for loss of in-

come or earning capacity as a result of in-

juries under a no-fault car insurance policy.

•

Compensation you receive for permanent

loss or loss of use of a part or function of

your body, or for your permanent disfigure-

ment. This compensation must be based

only on the injury and not on the period of

CAUTION

your absence from work. These benefits

aren’t taxable even if your employer pays

for the accident and health plan that pro-

vides these benefits.

Reimbursement for medical care. A reim-

bursement for medical care is generally not tax-

able. However, it may reduce your medical ex-

pense deduction. For more information, see

Pub. 502.

Interest Income

Reminders

Foreign source income. If you are a U.S. citi-

zen with interest income from sources outside

the United States (foreign income), you must re-

port that income on your tax return unless it is

exempt by U.S. law. This is true whether you re-

side inside or outside the United States and

whether or not you receive a Form 1099 from

the foreign payer.

Automatic 6-month extension. If you receive

your Form 1099 reporting your interest income

late and you need more time to file your tax re-

turn, you can request a 6-month extension of

time to file. See Automatic Extension in chap-

ter 1.

Children who have unearned income. See

Form 8615 and its instructions for the rules and

rates that apply to certain children with un-

earned income.

Introduction

This chapter discusses the following topics.

•

Different types of interest income.

•

What interest is taxable and what interest

is nontaxable.

•

When to report interest income.

•

How to report interest income on your tax

return.

In general, any interest you receive or that is

credited to your account and can be withdrawn

is taxable income. Exceptions to this rule are

discussed later in this chapter.

You may be able to deduct expenses you

have in earning this income on Schedule A

(Form 1040) if you itemize your deductions. See

Money borrowed to invest in certificate of de-

posit, later, and chapter 12.

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54 Chapter 6 Interest Income Publication 17 (2023)

Useful Items

You may want to see:

Publication

537 Installment Sales

550 Investment Income and Expenses

1212 Guide to Original Issue Discount

(OID) Instruments

Form (and Instructions)

1040 U.S. Individual Income Tax Return

1040-SR U.S. Income Tax Return for

Seniors

Schedule A (Form 1040) Itemized

Deductions

Schedule B (Form 1040) Interest and

Ordinary Dividends

1099 General Instructions for Certain

Information Returns

3115 Application for Change in

Accounting Method

8615 Tax for Certain Children Who Have

Unearned Income

8814 Parents' Election To Report Child's

Interest and Dividends

8815 Exclusion of Interest From Series EE

and I U.S. Savings Bonds Issued

After 1989

8818 Optional Form To Record

Redemption of Series EE and I U.S.

Savings Bonds Issued After 1989

For these and other useful items, go to IRS.gov/

Forms.

General Information

A few items of general interest are covered

here.

Recordkeeping. You should keep a

list showing sources of interest income

and interest amounts received during

the year. Also, keep the forms you receive

showing your interest income (Forms 1099-INT,

for example) as an important part of your re-

cords.

Tax on unearned income of certain chil-

dren. Part of a child's 2023 unearned income

may be taxed at the parent's tax rate. If so, Form

8615 must be completed and attached to the

child's tax return. If not, Form 8615 isn't required

and the child's income is taxed at his or her own

tax rate.

Some parents can choose to include the

child's interest and dividends on the parent's re-

turn. If you can, use Form 8814 for this purpose.

For more information about the tax on un-

earned income of children and the parents'

election, go to Form 8615.

Beneficiary of an estate or trust. Interest you

receive as a beneficiary of an estate or trust is

generally taxable income. You should receive a

Schedule K-1 (Form 1041), Beneficiary's Share

of Income, Deductions, Credits, etc., from the fi-

duciary. Your copy of Schedule K-1 (Form 1041)

537

550

1212

1040

1040-SR

Schedule A (Form 1040)

Schedule B (Form 1040)

1099

3115

8615

8814

8815

8818

RECORDS

and its instructions will tell you where to report

the income on your Form 1040 or 1040-SR.

Taxpayer identification number (TIN). You

must give your name and TIN (either a social

security number (SSN), an employer identifica-

tion number (EIN), an adoption taxpayer identifi-

cation number (ATIN), or an individual tax iden-

tification number (ITIN)) to any person required

by federal tax law to make a return, statement,

or other document that relates to you. This in-

cludes payers of interest. If you don't give your

TIN to the payer of interest, the payer will gener-

ally be required to backup withhold on the inter-

est payments at a rate of 24%, and you may

also be subject to a penalty. Use Form W-9, Re-

quest for Taxpayer Identification Number and

Certification, to provide the necessary informa-

tion. See Form W-9 and its instructions.

TIN for joint account. Generally, if the

funds in a joint account belong to one person,

list that person's name first on the account and

give that person's TIN to the payer. (For infor-

mation on who owns the funds in a joint ac-

count, see Joint accounts, later.) If the joint ac-

count contains combined funds, give the TIN of

the person whose name is listed first on the ac-

count. This is because only one name and TIN

can be shown on Form 1099.

These rules apply to both joint ownership by

a married couple and to joint ownership by

other individuals. For example, if you open a

joint savings account with your child using funds

belonging to the child, list the child's name first

on the account and give the child's TIN.

Form W-9 and its instructions provide: If this

Form W-9 is for a joint account (other than an

account maintained by a foreign financial insti-

tution (FFI)), list first, and then circle, the name

of the person or entity whose number you en-

tered in Part I of Form W-9. If you are providing

Form W-9 to an FFI to document a joint ac-

count, each holder of the account that is a U.S.

person must provide a Form W-9. See Form

W-9 and its instructions.

Custodian account for your child. If your

child is the actual owner of an account that is

recorded in your name as custodian for the

child, give the child's TIN to the payer. For ex-

ample, you must give your child's SSN to the

payer of interest on an account owned by your

child, even though the interest is paid to you as

custodian.

Penalty for failure to supply TIN. If you

don't give your TIN to the payer of interest, you

may have to pay a penalty. See Failure to supply

SSN under Penalties in chapter 1. Backup with-

holding may also apply.

Backup withholding. Your interest income is

generally not subject to regular withholding.

However, it may be subject to backup withhold-

ing to ensure that income tax is collected on the

income. Under backup withholding, the payer of

interest must withhold, as income tax, on the

amount you are paid, by applying the appropri-

ate withholding rate. The current rate is 24%.

Withholding is required only if there is a condi-

tion for backup withholding, such as failing to

provide your TIN to the payer or failing to certify

your TIN under penalties of perjury, if required.

Backup withholding may also be required if

the IRS has determined that you underreported

your interest or dividend income. For more infor-

mation, see Backup Withholding in chapter 4.

Reporting backup withholding. If backup

withholding is deducted from your interest in-

come, the amount withheld will be reported on

your Form 1099-INT. The Form 1099-INT will

show any backup withholding as “Federal in-

come tax withheld.”

Joint accounts. If two or more persons hold

property (such as a savings account or bond)

as joint tenants, tenants by the entirety, or ten-

ants in common, each person's share of any in-

terest from the property is determined by local

law.

Income from property given to a child.

Property you give as a parent to your child un-

der the Model Gifts of Securities to Minors Act,

the Uniform Gifts to Minors Act, or any similar

law becomes the child's property.

Income from the property is taxable to the

child, except that any part used to satisfy a legal

obligation to support the child is taxable to the

parent or guardian having that legal obligation.

Savings account with parent as trustee.

Interest income from a savings account opened

for a minor child, but placed in the name and

subject to the order of the parents as trustees,

is taxable to the child if, under the law of the

state in which the child resides, both of the fol-

lowing are true.

•

The savings account legally belongs to the

child.

•

The parents aren't legally permitted to use

any of the funds to support the child.

Form 1099-INT. Interest income is generally

reported to you on Form 1099-INT, or a similar

statement, by banks, savings and loans, and

other payers of interest. This form shows you

the interest income you received during the

year. Keep this form for your records. You don't

have to attach it to your tax return.

Report on your tax return the total interest in-

come you receive for the tax year. See the Form

1099-INT Instructions for Recipient to see

whether you need to adjust any of the amounts

reported to you.

Interest not reported on Form 1099-INT.

Even if you don't receive a Form 1099-INT, you

must still report all of your interest income. For

example, you may receive distributive shares of

interest from partnerships or S corporations.

This interest is reported to you on Schedule K-1

(Form 1065), Partner's Share of Income, De-

duction, Credits, etc.; or Schedule K-1 (Form

1120-S), Shareholder's Share of Income, De-

ductions, Credits, etc.

Nominees. Generally, if someone receives

interest as a nominee for you, that person must

give you a Form 1099-INT showing the interest

received on your behalf.

If you receive a Form 1099-INT and interest

as a nominee for another person, see the dis-

cussion on nominee distributions under How To

Report Interest Income in Publication 550,

chapter 1 or the Schedule B (Form 1040) in-

structions.

Incorrect amount. If you receive a Form

1099-INT that shows an incorrect amount or

other incorrect information, you should ask the

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Publication 17 (2023) Chapter 6 Interest Income 55

issuer for a corrected form. The new Form

1099-INT you receive will have the “CORREC-

TED” box checked.

Form 1099-OID. Reportable interest income

may also be shown on Form 1099-OID, Original

Issue Discount. For more information about

amounts shown on this form, see Original Issue

Discount (OID), later in this chapter.

The box references discussed below

are from the January 2022 revisions of

Form 1099-INT and Form 1099-DIV.

Later revisions may have different box referen-

ces.

Exempt-interest dividends. Exempt-interest

dividends you receive from a mutual fund or

other regulated investment company (RIC)

aren't included in your taxable income. (How-

ever, see Information reporting requirement

next.) Exempt-interest dividends should be

shown on Form 1099-DIV, box 12. You don't re-

duce your basis for distributions that are ex-

empt-interest dividends.

Information reporting requirement. Al-

though exempt-interest dividends aren't taxable,

you must show them on your tax return if you

have to file. This is an information reporting re-

quirement and doesn't change the exempt-inter-

est dividends into taxable income.

Note. Exempt-interest dividends paid by a

mutual fund or other RIC on specified private

activity bonds may be subject to the alternative

minimum tax (AMT). The exempt-interest divi-

dends subject to the AMT should be shown in

box 13 of Form 1099-DIV. See Alternative Mini-

mum Tax (AMT) in chapter 13 for more informa-

tion. Publication 550, chapter 1 contains a dis-

cussion on private activity bonds under State or

Local Government Obligations.

Interest on VA dividends. Interest on insur-

ance dividends left on deposit with the Depart-

ment of Veterans Affairs (VA) isn't taxable. This

includes interest paid on dividends on conver-

ted United States Government Life Insurance

and on National Service Life Insurance policies.

Individual retirement arrangements (IRAs).

Interest on a Roth IRA generally isn't taxable. In-

terest on a traditional IRA is tax deferred. You

generally don't include interest earned in an IRA

in your income until you make withdrawals from

the IRA. See chapter 9.

Taxable

Interest—General

Taxable interest includes interest you receive

from bank accounts, loans you make to others,

and other sources. The following are some

sources of taxable interest.

Dividends that are actually interest. Certain

distributions commonly called dividends are ac-

tually interest. You must report as interest

so-called dividends on deposits or on share ac-

counts in:

•

Cooperative banks,

•

Credit unions,

•

Domestic building and loan associations,

CAUTION

•

Domestic savings and loan associations,

•

Federal savings and loan associations,

and

•

Mutual savings banks.

The “dividends” will be shown as interest in-

come on Form 1099-INT.

Money market funds. Money market funds

pay dividends and are offered by nonbank fi-

nancial institutions, such as mutual funds and

stock brokerage houses. Generally, amounts

you receive from money market funds should be

reported as dividends, not as interest.

Certificates of deposit and other deferred

interest accounts. If you buy a certificate of

deposit or open a deferred interest account, in-

terest may be paid at fixed intervals of 1 year or

less during the term of the account. You must

generally include this interest in your income

when you actually receive it or are entitled to re-

ceive it without paying a substantial penalty.

The same is true for accounts that mature in 1

year or less and pay interest in a single payment

at maturity. If interest is deferred for more than 1

year, see Original Issue Discount (OID), later.

Interest subject to penalty for early with-

drawal. If you withdraw funds from a deferred

interest account before maturity, you may have

to pay a penalty. You must report the total

amount of interest paid or credited to your ac-

count during the year, without subtracting the

penalty. See Penalty on early withdrawal of sav-

ings in Publication 550, chapter 1 for more infor-

mation on how to report the interest and deduct

the penalty.

Money borrowed to invest in certificate of

deposit. The interest you pay on money bor-

rowed from a bank or savings institution to meet

the minimum deposit required for a certificate of

deposit from the institution and the interest you

earn on the certificate are two separate items.

You must report the total interest income you

earn on the certificate in your income. If you

itemize deductions, you can deduct the interest

you pay as investment interest, up to the

amount of your net investment income. See In-

terest Expenses in Publication 550, chapter 3.

Example. You purchase a $10,000 certifi-

cate of deposit by borrowing $5,000 from Bank

and adding an additional $5,000 of your funds.

The certificate earned $575 at maturity in 2023,

but you received only $265, which represented

the $575 you earned minus $310 interest

charged on your $5,000 loan. The bank gives

you a Form 1099-INT for 2023 showing the

$575 interest you earned. The bank also gives

you a statement showing that you paid $310 of

interest for 2023. You must include the $575 in

your income. If you itemize your deductions on

Schedule A (Form 1040), you can deduct $310,

subject to the net investment income limit.

Gift for opening account. If you receive non-

cash gifts or services for making deposits or for

opening an account in a savings institution, you

may have to report the value as interest.

For deposits of less than $5,000, gifts or

services valued at more than $10 must be re-

ported as interest. For deposits of $5,000 or

more, gifts or services valued at more than $20

must be reported as interest. The value is

determined by the cost to the financial institu-

tion.

Example. You open a savings account at

your local bank and deposit $800. The account

earns $20 interest. You also receive a $15 cal-

culator. If no other interest is credited to your

account during the year, the Form 1099-INT you

receive will show $35 interest for the year. You

must report $35 interest income on your tax re-

turn.

Interest on insurance dividends. Interest on

insurance dividends left on deposit with an in-

surance company that can be withdrawn annu-

ally is taxable to you in the year it is credited to

your account. However, if you can withdraw it

only on the anniversary date of the policy (or

other specified date), the interest is taxable in

the year that date occurs.

Prepaid insurance premiums. Any increase

in the value of prepaid insurance premiums, ad-

vance premiums, or premium deposit funds is

interest if it is applied to the payment of premi-

ums due on insurance policies or made availa-

ble for you to withdraw.

U.S. obligations. Interest on U.S. obligations

issued by any agency or instrumentality of the

United States, such as U.S. Treasury bills,

notes, and bonds, is taxable for federal income

tax purposes.

Interest on tax refunds. Interest you receive

on tax refunds is taxable income.

Interest on condemnation award. If the con-

demning authority pays you interest to compen-

sate you for a delay in payment of an award, the

interest is taxable.

Installment sale payments. If a contract for

the sale or exchange of property provides for

deferred payments, it also usually provides for

interest payable with the deferred payments.

Generally, that interest is taxable when you re-

ceive it. If little or no interest is provided for in a

deferred payment contract, part of each pay-

ment may be treated as interest. See Unstated

Interest and Original Issue Discount (OID) in

Pub. 537, Installment Sales.

Interest on annuity contract. Accumulated

interest on an annuity contract you sell before

its maturity date is taxable.

Usurious interest. Usurious interest is interest

charged at an illegal rate. This is taxable as in-

terest unless state law automatically changes it

to a payment on the principal.

Interest income on frozen deposits. Exclude

from your gross income interest on frozen de-

posits. A deposit is frozen if, at the end of the

year, you can't withdraw any part of the deposit

because:

•

The financial institution is bankrupt or in-

solvent, or

•

The state where the institution is located

has placed limits on withdrawals because

other financial institutions in the state are

bankrupt or insolvent.

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56 Chapter 6 Interest Income Publication 17 (2023)

The amount of interest you must exclude is

the interest that was credited on the frozen de-

posits minus the sum of:

•

The net amount you withdrew from these

deposits during the year, and

•

The amount you could have withdrawn as

of the end of the year (not reduced by any

penalty for premature withdrawals of a time

deposit).

If you receive a Form 1099-INT for interest in-

come on deposits that were frozen at the end of

2023, see Frozen deposits under How To Re-

port Interest Income in Publication 550, chap-

ter 1 for information about reporting this interest

income exclusion on your tax return.

The interest you exclude is treated as credi-

ted to your account in the following year. You

must include it in income in the year you can

withdraw it.

Example. $100 of interest was credited on

your frozen deposit during the year. You with-

drew $80 but couldn't withdraw any more as of

the end of the year. You must include $80 in

your income and exclude $20 from your income

for the year. You must include the $20 in your in-

come for the year you can withdraw it.

Bonds traded flat. If you buy a bond at a dis-

count when interest has been defaulted or when

the interest has accrued but hasn't been paid,

the transaction is described as trading a bond

flat. The defaulted or unpaid interest isn't in-

come and isn't taxable as interest if paid later.

When you receive a payment of that interest, it

is a return of capital that reduces the remaining

cost basis of your bond. Interest that accrues

after the date of purchase, however, is taxable

interest income for the year it is received or ac-

crued. See Bonds Sold Between Interest Dates,

later, for more information.

Below-market loans. Generally, a “below-mar-

ket loan” means any loan if (A) in the case of a

gift or demand loan, interest is payable on the

loan at a rate less than the applicable Federal

rate, or (B) in the case of a term loan, the

amount loaned exceeds the present value (us-

ing a discount rate equal to the applicable Fed-

eral rate) of all payments due under the loan.

(See Code section 7872 for details.) Section

7872 applies to certain below-market loans, in-

cluding gift loans, compensation-related loans,

and corporation-shareholder loans. (See Code

section 7872(c).) If you are the lender of a be-

low-market loan, you may have additional inter-

est income. See Below-Market Loans in Publi-

cation 550, chapter 1 for more information.

U.S. Savings Bonds

This section provides tax information on U.S.

savings bonds. It explains how to report the in-

terest income on these bonds and how to treat

transfers of these bonds.

U.S. savings bonds currently offered to indi-

viduals include Series EE bonds and Series I

bonds.

For information about U.S. savings

bonds, go to TreasuryDirect.gov/

savings-bonds/.

If you prefer, write to:

Treasury Retail Securities Services

P.O. Box 9150

Minneapolis, MN 55480-9150

Accrual method taxpayers. If you use an ac-

crual method of accounting, you must report in-

terest on U.S. savings bonds each year as it ac-

crues. You can't postpone reporting interest

until you receive it or until the bonds mature. Ac-

crual methods of accounting are explained in

chapter 1 under Accounting Methods.

Cash method taxpayers. If you use the cash

method of accounting, as most individual tax-

payers do, you generally report the interest on

U.S. savings bonds when you receive it. The

cash method of accounting is explained in

chapter 1 under Accounting Methods. But see

Reporting options for cash method taxpayers,

later.

Series H and HH bonds. These bonds were

issued at face value in exchange for other sav-

ings bonds. Series HH bonds were issued be-

tween 1980 and 2004. They mature 20 years af-

ter issue. Series HH bonds that have not

matured pay interest twice a year (usually by di-

rect deposit to your bank account). If you are a

cash method taxpayer, you must report this in-

terest as income in the year you receive it.

Series H bonds were issued before 1980. All

Series H bonds have matured and are no longer

earning interest.

In addition to the twice-a-year interest pay-

ments, most H/HH bonds have a deferred inter-

est component. The reporting of this as income

is addressed later in this chapter.

Series EE and Series I bonds. Interest on

these bonds is payable when you redeem the

bonds. The difference between the purchase

price and the redemption value is taxable inter-

est.

Series E and EE bonds. Series E bonds

were issued before July 1980. All Series E

bonds have matured and are no longer earning

interest. Series EE bonds were first offered in

January 1980 and have a maturity period of 30

years; they were offered in paper (definitive)

form until 2012. Paper Series EE and Series E

bonds were issued at a discount and increase

in value as they earn interest. Electronic

(book-entry) Series EE bonds were first offered

in 2003; they are issued at face value and in-

crease in value as they earn interest. For all

Series E and Series EE bonds, the purchase

price plus all accrued interest is payable to you

at redemption.

Series I bonds. Series I bonds were first of-

fered in 1998. These are inflation-indexed

bonds issued at face value with a maturity pe-

riod of 30 years. Series I bonds increase in

value as they earn interest. The face value plus

all accrued interest is payable to you at redemp-

tion.

Reporting options for cash method tax-

payers. If you use the cash method of report-

ing income, you can report the interest on Ser-

ies EE and Series I bonds in either of the

following ways.

1. Method 1. Postpone reporting the interest

until the earlier of the year you cash or dis-

pose of the bonds or the year they mature.

(However, see Savings bonds traded,

later.)

Note. Series EE bonds issued in 1993

matured in 2023. If you used method 1,

you must generally report the interest on

these bonds on your 2023 return.

2. Method 2. Choose to report the increase

in redemption value as interest each year.

You must use the same method for all Series EE

and Series I bonds you own. If you don't choose

method 2 by reporting the increase in redemp-

tion value as interest each year, you must use

method 1.

If you plan to cash your bonds in the

same year you will pay for higher edu-

cation expenses, you may want to use

method 1 because you may be able to exclude

the interest from your income. To learn how, see

Education Savings Bond Program, later.

Change from method 1. If you want to

change your method of reporting the interest

from method 1 to method 2, you can do so with-

out permission from the IRS. In the year of

change, you must report all interest accrued to

date and not previously reported for all your

bonds.

Once you choose to report the interest each

year, you must continue to do so for all Series

EE and Series I bonds you own and for any you

get later, unless you request permission to

change, as explained next.

Change from method 2. To change from

method 2 to method 1, you must request per-

mission from the IRS. Permission for the

change is automatically granted if you send the

IRS a statement that meets all the following re-

quirements.

1. You have typed or printed the following

number at the top: “131.”

2. It includes your name and social security

number under “131.”

3. It includes the year of change (both the be-

ginning and ending dates).

4. It identifies the savings bonds for which

you are requesting this change.

5. It includes your agreement to:

a. Report all interest on any bonds ac-

quired during or after the year of

change when the interest is realized

upon disposition, redemption, or final

maturity, whichever is earliest; and

b. Report all interest on the bonds ac-

quired before the year of change

when the interest is realized upon dis-

position, redemption, or final maturity,

whichever is earliest, with the excep-

tion of the interest reported in prior tax

years.

TIP

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Publication 17 (2023) Chapter 6 Interest Income 57

You must attach this statement to your tax

return for the year of change, which you must

file by the due date (including extensions).

You can have an automatic extension of 6

months from the due date of your return for the

year of change (excluding extensions) to file the

statement with an amended return. On the

statement, type or print “Filed pursuant to sec-

tion 301.9100-2.” To get this extension, you

must have filed your original return for the year

of the change by the due date (including exten-

sions).

Instead of filing this statement, you can re-

quest permission to change from method 2 to

method 1 by filing Form 3115, Application for

Change in Accounting Method. In that case, fol-

low the form instructions for an automatic

change. No user fee is required.

Co-owners. If a U.S. savings bond is issued in

the names of co-owners, such as you and your

child or you and your spouse, interest on the

bond is generally taxable to the co-owner who

bought the bond.

One co-owner's funds used. If you used

your funds to buy the bond, you must pay the

tax on the interest. This is true even if you let the

other co-owner redeem the bond and keep all

the proceeds. Under these circumstances, the

co-owner who redeemed the bond will receive a

Form 1099-INT at the time of redemption and

must provide you with another Form 1099-INT

showing the amount of interest from the bond

taxable to you. The co-owner who redeemed

the bond is a “nominee.” See Nominee distribu-

tions under How To Report Interest Income in

Publication 550, chapter 1 for more information

about how a person who is a nominee reports

interest income belonging to another person.

Both co-owners' funds used. If you and

the other co-owner each contribute part of the

bond's purchase price, the interest is generally

taxable to each of you, in proportion to the

amount each of you paid.

Community property. If you and your

spouse live in a community property state and

hold bonds as community property, one-half of

the interest is considered received by each of

you. If you file separate returns, each of you

must generally report one-half of the bond inter-

est. For more information about community

property, see Pub. 555.

Table 6-1. These rules are also shown in Ta-

ble 6-1.

Ownership transferred. If you bought Series

EE or Series I bonds entirely with your own

funds and had them reissued in your co-owner's

name or beneficiary's name alone, you must in-

clude in your gross income for the year of reis-

sue all interest that you earned on these bonds

and have not previously reported. But, if the

bonds were reissued in your name alone, you

don't have to report the interest accrued at that

time.

This same rule applies when bonds (other

than bonds held as community property) are

transferred between spouses or incident to di-

vorce.

Purchased jointly. If you and a co-owner

each contributed funds to buy Series EE or Ser-

ies I bonds jointly and later have the bonds reis-

sued in the co-owner's name alone, you must

include in your gross income for the year of reis-

sue your share of all the interest earned on the

bonds that you have not previously reported.

The former co-owner doesn't have to include in

gross income at the time of reissue his or her

share of the interest earned that was not repor-

ted before the transfer. This interest, however,

as well as all interest earned after the reissue, is

income to the former co-owner.

This income-reporting rule also applies

when a new co-owner purchases your share of

the bond and the bonds are reissued in the

name of your former co-owner and a new

co-owner. But the new co-owner will report only

his or her share of the interest earned after the

transfer.

If bonds that you and a co-owner bought

jointly are reissued to each of you separately in

the same proportion as your contribution to the

purchase price, neither you nor your co-owner

has to report at that time the interest earned be-

fore the bonds were reissued.

Example 1. You and your spouse each

spent an equal amount to buy a $1,000 Series

EE savings bond. The bond was issued to you

and your spouse as co-owners. You both post-

pone reporting interest on the bond. You later

have the bond reissued as two $500 bonds, one

in your name and one in your spouse's name. At

that time, neither you nor your spouse has to re-

port the interest earned to the date of reissue.

Example 2. You bought a $1,000 Series EE

savings bond entirely with your own funds. The

bond was issued to you and your spouse as

co-owners. You both postpone reporting interest

on the bond. You later have the bond reissued

as two $500 bonds, one in your name and one

in your spouse's name. You must report half the

interest earned to the date of reissue.

Transfer to a trust. If you own Series EE or

Series I bonds and transfer them to a trust, giv-

ing up all rights of ownership, you must include

in your income for that year the interest earned

to the date of transfer if you have not already re-

ported it. However, if you are considered the

owner of the trust and if the increase in value

both before and after the transfer continues to

be taxable to you, you can continue to defer re-

porting the interest earned each year. You must

include the total interest in your income in the

year you cash or dispose of the bonds or the

year the bonds finally mature, whichever is ear-

lier.

The same rules apply to previously unrepor-

ted interest on Series EE or Series E bonds if

the transfer to a trust consisted of Series HH

bonds you acquired in a trade for the Series EE

or Series E bonds. See Savings bonds traded,

later.

Decedents. The manner of reporting interest

income on Series EE or Series I bonds, after the

death of the owner (decedent), depends on the

accounting and income-reporting methods pre-

viously used by the decedent. This is explained

in Publication 550, chapter 1.

Savings bonds traded. Prior to September

2004, you could trade (exchange) Series E or

EE bonds for Series H or HH bonds. At the time

of the trade, you had the choice to postpone

(defer) reporting the interest earned on your

Series E or EE bonds until the Series H or HH

bonds received in the trade were redeemed or

matured. Any cash you received in the transac-

tion was income up to the amount of the interest

that had accrued on the Series E or EE bonds.

The amount of income that you chose to post-

pone reporting was recorded on the face of the

Series H or HH bonds as “Deferred Interest”;

this amount is also equal to the difference be-

tween the redemption value of the Series H or

HH bonds and your cost. Your cost is the sum of

the amount you paid for the exchanged Series E

or EE bonds plus any amount you had to pay at

the time of the transaction.

Example. You traded Series EE bonds (on

which you postponed reporting the interest) for

$2,500 in Series HH bonds and $223 in cash.

You reported the $223 as taxable income on

your tax return. At the time of the trade, the Ser-

ies EE bonds had accrued interest of $523 and

a redemption value of $2,723. You hold the Ser-

ies HH bonds until maturity, when you receive

$2,500. You must report $300 as interest in-

come in the year of maturity. This is the differ-

ence between their redemption value, $2,500,

and your cost, $2,200 (the amount you paid for

the Series EE bonds). It is also the difference

between the accrued interest of $523 on the

Series EE bonds and the $223 cash received

on the trade.

Note. The $300 amount that is reportable

upon redemption or maturity may be found re-

corded on the face of the Series HH bond as

“Deferred Interest.” If more than one Series HH

bond is received in the exchange, the total

amount of interest postponed/deferred in the

transaction is divided proportionately among

the Series HH bonds.

Choice to report interest in year of trade.

You can choose to treat all of the previously un-

reported accrued interest on the Series EE

bonds traded for Series HH bonds as income in

the year of the trade. If you made this choice, it

is treated as a change from method 1. See

Change from method 1, earlier. If you choose to

report the interest, then the “Deferred Interest”

Table 6-1. Who Pays the Tax on U.S. Savings Bond Interest

IF... THEN the interest must be reported by...

you buy a bond in your name and the name of another

person as co-owners, using only your own funds

you.

you buy a bond in the name of another person, who is the

sole owner of the bond

the person for whom you bought the bond.

you and another person buy a bond as co-owners, each

contributing part of the purchase price

both you and the other co-owner, in proportion to the

amount each paid for the bond.

you and your spouse, who live in a community property

state, buy a bond that is community property

you and your spouse. If you file separate returns, both you

and your spouse generally report one-half of the interest.

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58 Chapter 6 Interest Income Publication 17 (2023)

notation on the face of the Series HH bonds re-

ceived in the trade will be $0 or blank.

Form 1099-INT for U.S. savings bonds inter-

est. When you cash a bond, the bank or other

payer that redeems it must give you a Form

1099-INT if the interest part of the payment you

receive is $10 or more. Box 3 of your Form

1099-INT should show the interest as the differ-

ence between the amount you received and the

amount paid for the bond. However, your Form

1099-INT may show more interest than you

have to include on your income tax return. For

example, this may happen if any of the following

are true.

•

You chose to report the increase in the re-

demption value of the bond each year. The

interest shown on your Form 1099-INT

won't be reduced by amounts previously

included in income.

•

You received the bond from a decedent.

The interest shown on your Form 1099-INT

won't be reduced by any interest reported

by the decedent before death, or on the

decedent's final return, or by the estate on

the estate's income tax return.

•

Ownership of the bond was transferred.

The interest shown on your Form 1099-INT

won't be reduced by interest that accrued

before the transfer.

Note. This is true for paper bonds, but

the Treasury reporting process for elec-

tronic bonds is more refined—if Treasury is

aware that the transfer of an electronic sav-

ings bond is a reportable event, then the

transferor will receive a Form 1099-INT for

the year of the transfer for the interest ac-

crued up to the time of the transfer; when

the transferee later disposes of the bond

(redemption, maturity, or further transfer),

the transferee will receive a Form 1099-INT

reduced by the amount reported to the

transferor at the time of the original trans-

fer.

•

You were named as a co-owner, and the

other co-owner contributed funds to buy

the bond. The interest shown on your Form

1099-INT won't be reduced by the amount

you received as nominee for the other

co-owner. (See Co-owners, earlier in this

chapter, for more information about the re-

porting requirements.)

•

You received the bond in a taxable distribu-

tion from a retirement or profit-sharing

plan. The interest shown on your Form

1099-INT won't be reduced by the interest

portion of the amount taxable as a distribu-

tion from the plan and not taxable as inter-

est. (This amount is generally shown on

Form 1099-R, Distributions From Pen-

sions, Annuities, Retirement or Profit-Shar-

ing Plans, IRAs, Insurance Contracts, etc.,

for the year of distribution.)

For more information on including the cor-

rect amount of interest on your return, see How

To Report Interest Income, later. Pub. 550 in-

cludes examples showing how to report these

amounts.

Interest on U.S. savings bonds is ex-

empt from state and local taxes. The

Form 1099-INT you receive will indi-

cate the amount that is for U.S. savings bond in-

terest in box 3. Do not include this income on

your state or local income tax return.

Education Savings Bond

Program

You may be able to exclude from income all or

part of the interest you receive on the redemp-

tion of qualified U.S. savings bonds during the

year if you pay qualified higher educational ex-

penses during the same year. This exclusion is

known as the Education Savings Bond Pro-

gram.

You don't qualify for this exclusion if your fil-

ing status is married filing separately.

Form 8815. Use Form 8815 to figure your

exclusion. Attach the form to your Form 1040 or

1040-SR.

Qualified U.S. savings bonds. A qualified

U.S. savings bond is a Series EE bond issued

after 1989 or a Series I bond. The bond must be

issued either in your name (sole owner) or in

your and your spouse's names (co-owners).

You must be at least 24 years old before the

bond's issue date. For example, a bond bought

by a parent and issued in the name of his or her

child under age 24 doesn't qualify for the exclu-

sion by the parent or child.

The issue date of a bond may be ear-

lier than the date the bond is pur-

chased because the issue date as-

signed to a bond is the first day of the month in

which it is purchased.

Beneficiary. You can designate any individual

(including a child) as a beneficiary of the bond.

Verification by IRS. If you claim the exclu-

sion, the IRS will check it by using bond re-

demption information from the Department of

the Treasury.

Qualified expenses. Qualified higher edu-

cation expenses are tuition and fees required

for you, your spouse, or your dependent (for

whom you claim an exemption) to attend an eli-

gible educational institution.

Qualified expenses include any contribution

you make to a qualified tuition program or to a

Coverdell education savings account (ESA).

Qualified expenses don't include expenses

for room and board or for courses involving

sports, games, or hobbies that aren't part of a

degree- or certificate-granting program.

Eligible educational institutions. These

institutions include most public, private, and

nonprofit universities, colleges, and vocational

schools that are accredited and eligible to par-

ticipate in student aid programs run by the U.S.

Department of Education.

Reduction for certain benefits. You must

reduce your qualified higher education expen-

ses by all of the following tax-free benefits.

1. Tax-free part of scholarships and fellow-

ships (see Scholarships and fellowships in

chapter 8).

TIP

CAUTION

2. Expenses used to figure the tax-free por-

tion of distributions from a Coverdell ESA.

3. Expenses used to figure the tax-free por-

tion of distributions from a qualified tuition

program.

4. Any tax-free payments (other than gifts or

inheritances) received for educational ex-

penses, such as:

a. Veterans' educational assistance ben-

efits,

b. Qualified tuition reductions, or

c. Employer-provided educational assis-

tance.

5. Any expense used in figuring the Ameri-

can opportunity and lifetime learning cred-

its.

Amount excludable. If the total proceeds

(interest and principal) from the qualified U.S.

savings bonds you redeem during the year

aren't more than your adjusted qualified higher

education expenses for the year, you may be

able to exclude all of the interest. If the pro-

ceeds are more than the expenses, you may be

able to exclude only part of the interest.

To determine the excludable amount, multi-

ply the interest part of the proceeds by a frac-

tion. The numerator of the fraction is the quali-

fied higher education expenses you paid during

the year. The denominator of the fraction is the

total proceeds you received during the year.

Example. In January 2023, Mark and Joan,

a married couple, cashed qualified Series EE

U.S. savings bonds with a total denomination of

$10,000 that they bought in January 2007 for

$5,000. They received proceeds of $8,848, rep-

resenting principal of $5,000 and interest of

$3,848. In 2023, they paid $4,000 of their

daughter's college tuition. They aren't claiming

an education credit for that amount, and their

daughter doesn't have any tax-free educational

assistance. They can exclude $1,739.60

($3,848 × ($4,000 ÷ $8,848)) of interest in 2023.

They must include the remaining $2,108.40

($3,848 − $1,739.60) interest in gross income.

Modified adjusted gross income limit.

The interest exclusion is limited if your modified

adjusted gross income (modified AGI) is:

•

$137,800 to $167,800 for married taxpay-

ers filing jointly, and

•

$91,850 to $106,850 for all other taxpay-

ers.

You don't qualify for the interest exclusion if your

modified AGI is equal to or more than the upper

limit for your filing status.

Modified AGI, for purposes of this exclusion,

is adjusted gross income (Form 1040 or

1040-SR, line 11) figured before the interest ex-

clusion, and modified by adding back any:

1. Foreign earned income exclusion,

2. Foreign housing exclusion and deduction,

3. Exclusion of income for bona fide resi-

dents of American Samoa,

4. Exclusion for income from Puerto Rico,

5. Exclusion for adoption benefits received

under an employer's adoption assistance

program, and

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Publication 17 (2023) Chapter 6 Interest Income 59

6. Deduction for student loan interest.

Use the Line 9 Worksheet in the Form 8815

instructions to figure your modified AGI.

If you have investment interest expense in-

curred to earn royalties and other investment in-

come, see Education Savings Bond Program

and Royalties included in modified AGI in Publi-

cation 550, chapter 1.

Recordkeeping. If you claim the inter-

est exclusion, you must keep a written

record of the qualified U.S. savings

bonds you redeem. Your record must include

the serial number, issue date, face value, and

total redemption proceeds (principal and inter-

est) of each bond. You can use Form 8818 to

record this information. You should also keep

bills, receipts, canceled checks, or other docu-

mentation that shows you paid qualified higher

education expenses during the year.

U.S. Treasury Bills,

Notes, and Bonds

Treasury bills, notes, and bonds are direct debts

(obligations) of the U.S. Government.

Taxation of interest. Interest income from

Treasury bills, notes, and bonds is subject to

federal income tax but is exempt from all state

and local income taxes. You should receive a

Form 1099-INT showing the interest paid to you

for the year in box 3.

Treasury bills. These bills generally have a

4-week, 8-week, 13-week, 26-week, or 52-week

maturity period. They are generally issued at a

discount in the amount of $100 and multiples of

$100. The difference between the discounted

price you pay for the bills and the face value you

receive at maturity is interest income. Generally,

you report this interest income when the bill is

paid at maturity. If you paid a premium for a bill

(more than the face value), you generally report

the premium as a section 171 deduction when

the bill is paid at maturity.

If you reinvest your Treasury bill at its matur-

ity in a new Treasury bill, note, or bond, you will

receive payment for the difference between the

proceeds of the maturing bill (par amount less

any tax withheld) and the purchase price of the

new Treasury security. However, you must re-

port the full amount of the interest income on

each of your Treasury bills at the time it reaches

maturity.

Treasury notes and bonds. Treasury notes

generally have maturity periods of more than 1

year, ranging up to 10 years. Maturity periods

for Treasury bonds are generally longer than 10

years. Both are generally issued in denomina-

tions of $100 to $1,000,000 and generally pay

interest every 6 months. Generally, you report

this interest for the year paid. For more informa-

tion, see U.S. Treasury Bills, Notes, and Bonds

in Publication 550, chapter 1.

For other information on Treasury notes

or bonds, write to:

Treasury Retail Securities Services

P.O. Box 9150

Minneapolis, MN 55480-9150

RECORDS

Or, on the Internet, go to

TreasuryDirect.gov/marketable-

securities/.

For information on Series EE, Series I, and

Series HH savings bonds, see U.S. Savings

Bonds, earlier.

Treasury inflation-protected securities

(TIPS). These securities pay interest twice a

year at a fixed rate, based on a principal amount

adjusted to take into account inflation and defla-

tion. For the tax treatment of these securities,

see Inflation-Indexed Debt Instruments under

Original Issue Discount (OID) in IRS.gov/

Pub550.

Bonds Sold Between

Interest Dates

If you sell a bond between interest payment

dates, part of the sales price represents interest

accrued to the date of sale. You must report that

part of the sales price as interest income for the

year of sale.

If you buy a bond between interest payment

dates, part of the purchase price represents in-

terest accrued before the date of purchase.

When that interest is paid to you, treat it as a

nontaxable return of your capital investment,

rather than as interest income. See Accrued in-

terest on bonds under How To Report Interest

Income in Publication 550, chapter 1 for infor-

mation on reporting the payment.

Insurance

Life insurance proceeds paid to you as benefi-

ciary of the insured person are usually not taxa-

ble. But if you receive the proceeds in install-

ments, you must usually report a part of each

installment payment as interest income.

For more information about insurance pro-

ceeds received in installments, see Pub. 525,

Taxable and Nontaxable Income.

Annuity. If you buy an annuity with life insur-

ance proceeds, the annuity payments you re-

ceive are taxed as pension and annuity income

from a nonqualified plan, not as interest income.

See chapter 5 for information on pension and

annuity income from nonqualified plans.

State or Local

Government Obligations

Interest on a bond used to finance government

operations generally isn't taxable if the bond is

issued by a state, the District of Columbia, a ter-

ritory of the United States, or any of their politi-

cal subdivisions.

Bonds issued after 1982 by an Indian tribal

government (including tribal economic develop-

ment bonds issued after February 17, 2009) are

treated as issued by a state. Interest on these

bonds is generally tax exempt if the bonds are

part of an issue of which substantially all pro-

ceeds are to be used in the exercise of any es-

sential government function. However, the es-

sential government function requirement does

not apply to tribal economic development bonds

issued after February 17, 2009. See section

7871(f).

For information on federally guaranteed

bonds, mortgage revenue bonds, arbitrage

bonds, private activity bonds, qualified bonds,

and tax credit bonds, including whether interest

on some of these bonds is taxable, see State or

Local Government Obligations in Publication

550, chapter 1.

Information reporting requirement. If you file

a tax return, you are required to show any

tax-exempt interest you received on your return.

Tax-exempt interest paid to you will be reported

to you on Form 1099-INT, box 8. This is an infor-

mation reporting requirement only. It doesn't

change tax-exempt interest to taxable interest.

Original Issue Discount

(OID)

OID is a form of interest. You generally include

OID in your income as it accrues over the term

of the debt instrument, whether or not you re-

ceive any payments from the issuer.

A debt instrument generally has OID when

the instrument is issued for a price that is less

than its stated redemption price at maturity. OID

is the difference between the stated redemption

price at maturity and the issue price.

All debt instruments that pay no interest be-

fore maturity are presumed to be issued at a

discount. Zero coupon bonds are one example

of these instruments.

The OID accrual rules generally don't apply

to short-term obligations (those with a fixed ma-

turity date of 1 year or less from date of issue).

See Discount on Short-Term Obligations in

Publication 550, chapter 1.

De minimis OID. You can treat the discount as

zero if it is less than one-fourth of 1% (0.0025)

of the stated redemption price at maturity multi-

plied by the number of full years from the date

of original issue to maturity. This small discount

is known as de minimis OID.

Example 1. You bought a 10-year bond

with a stated redemption price at maturity of

$1,000, issued at $980 with OID of $20.

One-fourth of 1% of $1,000 (stated redemption

price) times 10 (the number of full years from

the date of original issue to maturity) equals

$25. Because the $20 discount is less than $25,

the OID is treated as zero. (If you hold the bond

at maturity, you will recognize $20 ($1,000 −

$980) of capital gain.)

Example 2. The facts are the same as in

Example 1, except that the bond was issued at

$950. The OID is $50. Because the $50 dis-

count is more than the $25 figured in Exam-

ple 1, you must include the OID in income as it

accrues over the term of the bond.

Debt instrument bought after original is-

sue. If you buy a debt instrument with de mini-

mis OID at a premium, the de minimis OID isn't

includible in income. If you buy a debt instru-

ment with de minimis OID at a discount, the dis-

count is reported under the market discount

rules. See Market Discount Bonds in Publica-

tion 550, chapter 1.

Exceptions to reporting OID as current in-

come. The OID rules discussed in this chapter

don't apply to the following debt instruments.

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60 Chapter 6 Interest Income Publication 17 (2023)

1. Tax-exempt obligations. (However, see

Stripped tax-exempt obligations under

Stripped Bonds and Coupons in Publica-

tion 550, chapter 1.)

2. U.S. savings bonds.

3. Short-term debt instruments (those with a

fixed maturity date of not more than 1 year

from the date of issue).

4. Loans between individuals if all the follow-

ing are true.

a. The loan is not made in the course of

a trade or business of the lender.

b. The amount of the loan, plus the

amount of any outstanding prior loans

between the same individuals, is

$10,000 or less.

c. Avoiding any federal tax isn't one of

the principal purposes of the loan.

5. A debt instrument purchased at a pre-

mium.

Form 1099-OID. The issuer of the debt instru-

ment (or your broker if you held the instrument

through a broker) should give you Form

1099-OID, or a similar statement, if the total OID

for the calendar year is $10 or more. Form

1099-OID will show, in box 1, the amount of OID

for the part of the year that you held the bond. It

will also show, in box 2, the stated interest you

must include in your income. Box 8 shows OID

on a U.S. Treasury obligation for the part of the

year you owned it and isn't included in box 1. A

copy of Form 1099-OID will be sent to the IRS.

Don't file your copy with your return. Keep it for

your records.

In most cases, you must report the entire

amount in boxes 1, 2, and 8 of Form 1099-OID

as interest income. But see Refiguring OID

shown on Form 1099-OID, later in this discus-

sion, for more information.

Form 1099-OID not received. If you had OID

for the year but didn't receive a Form 1099-OID,

you may have to figure the correct amount of

OID to report on your return. See Pub. 1212 for

details on how to figure the correct OID.

Nominee. If someone else is the holder of

record (the registered owner) of an OID instru-

ment belonging to you and receives a Form

1099-OID on your behalf, that person must give

you a Form 1099-OID.

Refiguring OID shown on Form 1099-OID.

You may need to refigure the OID shown in

box 1 or box 8 of Form 1099-OID if either of the

following applies.

•

You bought the debt instrument after its

original issue and paid a premium or an ac-

quisition premium.

•

The debt instrument is a stripped bond or a

stripped coupon (including certain zero

coupon instruments).

If you acquired your debt instrument before

2014, your payer is only required to report a

gross amount of OID in box 1 or box 8 of Form

1099-OID.

For information about figuring the correct

amount of OID to include in your income, see

Figuring OID on Long-Term Debt Instruments in

Pub. 1212 and the Form 1099-OID Instructions

for Recipient.

If you acquired your debt instrument after

2013, unless you have informed your payer that

you do not want to amortize bond premium,

your payer must generally report either (1) a net

amount of OID that reflects the offset of OID by

the amount of bond premium or acquisition pre-

mium amortization for the year, or (2) a gross

amount for both the OID and the bond premium

or acquisition premium amortization for the

year.

Refiguring periodic interest shown on Form

1099-OID. If you disposed of a debt instrument

or acquired it from another holder during the

year, see Bonds Sold Between Interest Dates,

earlier, for information about the treatment of

periodic interest that may be shown in box 2 of

Form 1099-OID for that instrument.

Certificates of deposit (CDs). A CD is a debt

instrument. If you buy a CD with a maturity of

more than 1 year, you must include in income

each year a part of the total interest due and re-

port it in the same manner as other OID.

This also applies to similar deposit arrange-

ments with banks, building and loan associa-

tions, etc., including:

•

Time deposits,

•

Bonus plans,

•

Savings certificates,

•

Deferred income certificates,

•

Bonus savings certificates, and

•

Growth savings certificates.

Bearer CDs. CDs issued after 1982 must

generally be in registered form. Bearer CDs are

CDs not in registered form. They aren't issued

in the depositor's name and are transferable

from one individual to another.

Banks must provide the IRS and the person

redeeming a bearer CD with a Form 1099-INT.

More information. See Publication 550, chap-

ter 1 for more information about OID and related

topics, such as market discount bonds.

When To Report

Interest Income

When to report your interest income depends

on whether you use the cash method or an ac-

crual method to report income.

Cash method. Most individual taxpayers use

the cash method. If you use this method, you

generally report your interest income in the year

in which you actually or constructively receive it.

However, there are special rules for reporting

the discount on certain debt instruments. See

U.S. Savings Bonds and Original Issue Dis-

count (OID), earlier.

Example. On September 1, 2021, you

loaned another individual $2,000 at 4% interest,

compounded annually. You aren't in the busi-

ness of lending money. The note stated that

principal and interest would be due on August

31, 2023. In 2023, you received $2,163.20

($2,000 principal and $163.20 interest). If you

use the cash method, you must include in in-

come on your 2023 return the $163.20 interest

you received in that year.

Constructive receipt. You constructively re-

ceive income when it is credited to your account

or made available to you. You don't need to

have physical possession of it. For example,

you are considered to receive interest, divi-

dends, or other earnings on any deposit or ac-

count in a bank, savings and loan, or similar fi-

nancial institution, or interest on life insurance

policy dividends left to accumulate, when they

are credited to your account and subject to your

withdrawal.

You constructively receive income on the de-

posit or account even if you must:

•

Make withdrawals in multiples of even

amounts;

•

Give a notice to withdraw before making

the withdrawal;

•

Withdraw all or part of the account to with-

draw the earnings; or

•

Pay a penalty on early withdrawals, unless

the interest you are to receive on an early

withdrawal or redemption is substantially

less than the interest payable at maturity.

Accrual method. If you use an accrual

method, you report your interest income when

you earn it, whether or not you have received it.

Interest is earned over the term of the debt in-

strument.

Example. If, in the previous example, you

use an accrual method, you must include the in-

terest in your income as you earn it. You would

report the interest as follows: 2021, $26.67;

2022, $81.06; and 2023, $55.47.

Coupon bonds. Interest on bearer bonds with

detachable coupons is generally taxable in the

year the coupon becomes due and payable. It

doesn't matter when you mail the coupon for

payment.

How To Report

Interest Income

Generally, you report all your taxable interest in-

come on Form 1040 or 1040-SR, line 2b.

Schedule B (Form 1040). You must com-

plete Schedule B (Form 1040), Part I, if you file

Form 1040 or 1040-SR and any of the following

apply.

1. Your taxable interest income is more than

$1,500.

2. You are claiming the interest exclusion un-

der the Education Savings Bond Program

(discussed earlier).

3. You received interest from a seller-fi-

nanced mortgage, and the buyer used the

property as a home.

4. You received a Form 1099-INT for U.S.

savings bond interest that includes

amounts you reported in a previous tax

year.

5. You received, as a nominee, interest that

actually belongs to someone else.

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Publication 17 (2023) Chapter 6 Interest Income 61

6. You received a Form 1099-INT for interest

on frozen deposits.

7. You received a Form 1099-INT for interest

on a bond you bought between interest

payment dates.

8. You are reporting OID in an amount less

than the amount shown on Form

1099-OID.

9. You reduce interest income from bonds by

amortizable bond premium.

In Part I, line 1, list each payer's name and the

amount received from each. If you received a

Form 1099-INT or Form 1099-OID from a bro-

kerage firm, list the brokerage firm as the payer.

The box references discussed below

are from the January 2022 revisions of

Form 1099-INT and Form 1099-DIV.

Later revisions may have different box referen-

ces.

Reporting tax-exempt interest. Total your

tax-exempt interest (such as interest or accrued

OID on certain state and municipal bonds, in-

cluding zero coupon municipal bonds) reported

on Form 1099-INT, box 8; Form 1099-OID,

box 11; and exempt-interest dividends from a

mutual fund or other regulated investment com-

pany reported on Form 1099-DIV, box 12. Add

these amounts to any other tax-exempt interest

you received. Report the total on line 2a of Form

1040 or 1040-SR.

Form 1099-INT, box 9, and Form 1099-DIV,

box 13, show the tax-exempt interest subject to

the AMT on Form 6251. These amounts are al-

ready included in the amounts on Form

1099-INT, box 8, and Form 1099-DIV, box 12.

Don't add the amounts in Form 1099-INT, box 9,

and Form 1099-DIV, box 13, to, or subtract them

from, the amounts on Form 1099-INT, box 8,

and Form 1099-DIV, box 12.

Don't report interest from an IRA as

tax-exempt interest.

Form 1099-INT. Your taxable interest income,

except for interest from U.S. savings bonds and

Treasury obligations, is shown in box 1 of Form

1099-INT. Add this amount to any other taxable

interest income you received. See the Form

1099-INT Instructions for Recipient if you have

interest from a security acquired at a premium.

You must report all of your taxable interest in-

come even if you don't receive a Form

1099-INT. Contact your financial institution if

you don't receive a Form 1099-INT by February

15. Your identifying number may be truncated

on any Form 1099-INT you receive.

If you forfeited interest income because of

the early withdrawal of a time deposit, the de-

ductible amount will be shown on Form

1099-INT in box 2. See Penalty on early with-

drawal of savings in Publication 550, chapter 1.

Box 3 of Form 1099-INT shows the interest

income you received from U.S. savings bonds,

Treasury bills, Treasury notes, and Treasury

bonds. Generally, add the amount shown in

box 3 to any other taxable interest income you

received. If part of the amount shown in box 3

was previously included in your interest income,

see U.S. savings bond interest previously repor-

ted, later. If you acquired the security at a

CAUTION

premium, see the Form 1099-INT Instructions

for Recipient.

Box 4 of Form 1099-INT will contain an

amount if you were subject to backup withhold-

ing. Include the amount from box 4 on Form

1040 or 1040-SR, line 25b (federal income tax

withheld).

Box 5 of Form 1099-INT shows investment

expenses. This amount is not deductible. See

chapter 12 for more information about invest-

ment expenses.

Box 6 of Form 1099-INT shows foreign tax

paid. You may be able to claim this tax as a de-

duction or a credit on your Form 1040 or

1040-SR. See your tax return instructions.

Box 7 of Form 1099-INT shows the country

or U.S. territory to which the foreign tax was

paid.

U.S. savings bond interest previously re-

ported. If you received a Form 1099-INT for

U.S. savings bond interest, the form may show

interest you don't have to report. See Form

1099-INT for U.S. savings bonds interest, ear-

lier.

On Schedule B (Form 1040), Part I, line 1,

report all the interest shown on your Form

1099-INT. Then follow these steps.

1. Several rows above line 2, enter a subtotal

of all interest listed on line 1.

2. Below the subtotal, enter “U.S. Savings

Bond Interest Previously Reported” and

enter amounts previously reported or inter-

est accrued before you received the bond.

3. Subtract these amounts from the subtotal

and enter the result on line 2.

More information. For more information about

how to report interest income, see Publication

550, chapter 1 or the instructions for the form

you must file.

Social Security

and Equivalent

Railroad

Retirement

Beneﬁts

Reminders

Lines 1a through 1z on Forms 1040 and

1040-SR. Line 1 was expanded and there are

lines 1a through 1z. Some amounts that in prior

years were reported on Form 1040, and some

amounts reported on Form 1040-SR, are now

reported on Schedule 1.

•

Scholarships and fellowship grants are

now reported on Schedule 1, line 8r.

•

Pension or annuity from a nonqualified de-

ferred compensation plan or a nongovern-

mental section 457 plan is now reported on

Schedule 1, line 8t.

•

Wages earned while incarcerated are now

reported on Schedule 1, line 8u.

Line 6c on Forms 1040 and 1040-SR. A

checkbox was added on line 6c. Taxpayers who

elect to use the lump-sum election method for

their benefits will check this box. See

Lump-Sum Election in Pub. 915, Social Security

and Equivalent Railroad Retirement Benefits,

for details.

Introduction

This chapter explains the federal income tax

rules for social security benefits and equivalent

tier 1 railroad retirement benefits. It explains the

following topics.

•

How to figure whether your benefits are

taxable.

•

How to report your taxable benefits.

•

How to use the Social Security Benefits

Worksheet (with examples).

•

Deductions related to your benefits and

how to treat repayments that are more than

the benefits you received during the year.

Social security benefits include monthly re-

tirement, survivor, and disability benefits. They

don’t include Supplemental Security Income

(SSI) payments, which aren’t taxable.

Equivalent tier 1 railroad retirement benefits

are the part of tier 1 benefits that a railroad em-

ployee or beneficiary would have been entitled

to receive under the social security system.

They are commonly called the social security

equivalent benefit (SSEB) portion of tier 1 bene-

fits.

If you received these benefits during 2023,

you should have received a Form SSA-1099,

Social Security Benefit Statement; or Form

RRB-1099, Payments by the Railroad Retire-

ment Board. These forms show the amounts re-

ceived and repaid, and taxes withheld for the

year. You may receive more than one of these

forms for the same year. You should add the

amounts shown on all the Forms SSA-1099 and

Forms RRB-1099 you receive for the year to de-

termine the total amounts received and repaid,

and taxes withheld for that year. See the Appen-

dix at the end of Pub. 915 for more information.

Note. When the term “benefits” is used in

this chapter, it applies to both social security

benefits and the SSEB portion of tier 1 railroad

retirement benefits.

my Social Security account. Social security

beneficiaries may quickly and easily obtain in-

formation from the SSA's website with a my So-

cial Security account to:

•

Keep track of your earnings and verify

them every year,

•

Get an estimate of your future benefits if

you are still working,

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62 Chapter 7 Social Security and Equivalent Railroad Retirement

Benefits

Publication 17 (2023)

•

Get a letter with proof of your benefits if

you currently receive them,

•

Change your address,

•

Start or change your direct deposit,

•

Get a replacement Medicare card, and

•

Get a replacement Form SSA-1099 for the

tax season.

For more information and to set up an account,

go to SSA.gov/myaccount.

What isn’t covered in this chapter. This

chapter doesn’t cover the tax rules for the fol-

lowing railroad retirement benefits.

•

Non-social security equivalent benefit

(NSSEB) portion of tier 1 benefits.

•

Tier 2 benefits.

•

Vested dual benefits.

•

Supplemental annuity benefits.

For information on these benefits, see Pub. 575,

Pension and Annuity Income.

This chapter doesn’t cover the tax rules for

social security benefits reported on Form

SSA-1042S, Social Security Benefit Statement;

or Form RRB-1042S, Statement for Nonresi-

dent Alien Recipients of Payments by the Rail-

road Retirement Board. For information about

these benefits, see Pub. 519, U.S. Tax Guide for

Aliens; and Pub. 915.

This chapter also doesn’t cover the tax rules

for foreign social security benefits. These bene-

fits are taxable as annuities, unless they are ex-

empt from U.S. tax or treated as a U.S. social

security benefit under a tax treaty.

Useful Items

You may want to see:

Publication

501 Dependents, Standard Deduction,

and Filing Information

505 Tax Withholding and Estimated Tax

519 U.S. Tax Guide for Aliens

575 Pension and Annuity Income

590-A Contributions to Individual

Retirement Arrangements (IRAs)

915 Social Security and Equivalent

Railroad Retirement Benefits

Form (and Instructions)

1040-ES Estimated Tax for Individuals

SSA-1099 Social Security Benefit

Statement

RRB-1099 Payments by the Railroad

Retirement Board

W-4V Voluntary Withholding Request

For these and other useful items, go to IRS.gov/

Forms.

Are Any of Your

Benefits Taxable?

To find out whether any of your benefits may be

taxable, compare the base amount (explained

later) for your filing status with the total of:

501

505

519

575

590-A

915

1040-ES

SSA-1099

RRB-1099

W-4V

1. One-half of your benefits; plus

2. All your other income, including tax-ex-

empt interest.

Exclusions. When making this comparison,

don’t reduce your other income by any exclu-

sions for:

•

Interest from qualified U.S. savings bonds,

•

Employer-provided adoption benefits,

•

Interest on education loans,

•

Foreign earned income or foreign housing,

•

Income earned by bona fide residents of

American Samoa or Puerto Rico.

Children's benefits. The rules in this chapter

apply to benefits received by children. See Who

is taxed, later.

Figuring total income. To figure the total of

one-half of your benefits plus your other in-

come, use Worksheet 7-1, discussed later. If

the total is more than your base amount, part of

your benefits may be taxable.

If you are married and file a joint return for

2023, you and your spouse must combine your

incomes and your benefits to figure whether any

of your combined benefits are taxable. Even if

your spouse didn’t receive any benefits, you

must add your spouse's income to yours to fig-

ure whether any of your benefits are taxable.

If the only income you received during

2023 was your social security or the

SSEB portion of tier 1 railroad retire-

ment benefits, your benefits generally aren’t tax-

able and you probably don’t have to file a return.

If you have income in addition to your benefits,

you may have to file a return even if none of

your benefits are taxable. See Do I Have To File

a Return? in chapter 1, earlier; Pub. 501; or your

tax return instructions to find out if you have to

file a return.

Base amount. Your base amount is:

•

$25,000 if you are single, head of house-

hold, or qualifying surviving spouse;

•

$25,000 if you are married filing separately

and lived apart from your spouse for all of

2023;

•

$32,000 if you are married filing jointly; or

•

$0 if you are married filing separately and

lived with your spouse at any time during

2023.

Worksheet 7-1. You can use Worksheet 7-1 to

figure the amount of income to compare with

your base amount. This is a quick way to check

whether some of your benefits may be taxable.

TIP

Worksheet 7-1. A Quick Way To Check if Your

Benefits May Be Taxable

Note. If you plan to file a joint income tax return,

include your spouse's amounts, if any, on lines

A, C, and D.

A. Enter the total amount from

box 5 of all your Forms

SSA-1099 and RRB-1099.

Include the full amount of

any lump-sum benefit

payments received in 2023,

for 2023 and earlier years.

(If you received more than

one form, combine the

amounts from box 5 and

enter the total.) ....... A.

Note. If the amount on line A is zero or less,

stop here; none of your benefits are taxable this

year.

B. Multiply line A by 50%

(0.50) ............. B.

C. Enter your total income that

is taxable (excluding line A),

such as pensions, wages,

interest, ordinary dividends,

and capital gain

distributions. Don’t reduce

your income by any

deductions, exclusions

(listed earlier), or

exemptions .......... C.

D. Enter any tax-exempt

interest income, such as

interest on municipal

bonds ............. D.

E. Add lines B, C, and D .... E.

Note. Compare the amount on line E to your

base amount for your filing status. If the

amount on line E equals or is less than the base

amount for your filing status, none of your

benefits are taxable this year. If the amount on

line E is more than your base amount, some of

your benefits may be taxable and you will need

to complete Worksheet 1 in Pub. 915 (or the

Social Security Benefits Worksheet in your tax

form instructions). If none of your benefits are

taxable, but you must otherwise file a tax return,

see Benefits not taxable, later, under How To

Report Your Benefits.

Example. You and your spouse (both over

65) are filing a joint return for 2023 and you both

received social security benefits during the year.

In January 2024, you received a Form

SSA-1099 showing net benefits of $1,500 in

box 5. Your spouse received a Form SSA-1099

showing net benefits of $700 in box 5. You also

received a taxable pension of $30,100 and in-

terest income of $700. You didn’t have any

tax-exempt interest income. Your benefits aren’t

taxable for 2023 because your income, as fig-

ured in Worksheet 7-1, isn’t more than your

base amount ($32,000) for married filing jointly.

Even though none of your benefits are taxa-

ble, you must file a return for 2023 because your

taxable gross income ($30,800) exceeds the

minimum filing requirement amount for your fil-

ing status.

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Publication 17 (2023) Chapter 7 Social Security and Equivalent Railroad Retirement

Benefits

Filled-in Worksheet 7-1. A Quick Way To

Check if Your Benefits May Be Taxable

Note. If you plan to file a joint income tax return,

include your spouse's amounts, if any, on lines

A, C, and D.

A. Enter the total amount from

box 5 of all your Forms

SSA-1099 and RRB-1099.

Include the full amount of

any lump-sum benefit

payments received in 2023,

for 2023 and earlier years.

(If you received more than

one form, combine the

amounts from box 5 and

enter the total.) ....... A.

$2,200

Note. If the amount on line A is zero or less,

stop here; none of your benefits are taxable this

year.

B. Multiply line A by 50%

(0.50) ............. B.

1,100

C. Enter your total income that

is taxable (excluding line A),

such as pensions, wages,

interest, ordinary dividends,

and capital gain

distributions. Don’t reduce

your income by any

deductions, exclusions

(listed earlier), or

exemptions .......... C.

30,800

D. Enter any tax-exempt

interest income, such as

interest on municipal

bonds ............ D.

-0-

E. Add lines B, C, and D ...

$31,900

Note. Compare the amount on line E to your

base amount for your filing status. If the

amount on line E equals or is less than the base

amount for your filing status, none of your

benefits are taxable this year. If the amount on

line E is more than your base amount, some of

your benefits may be taxable and you will need

to complete Worksheet 1 in Pub. 915 (or the

Social Security Benefits Worksheet in your tax

form instructions). If none of your benefits are

taxable, but you otherwise must file a tax return,

see Benefits not taxable, later, under How To

Report Your Benefits.

Who is taxed. Benefits are included in the tax-

able income (to the extent they are taxable) of

the person who has the legal right to receive the

benefits. For example, if you and your child re-

ceive benefits, but the check for your child is

made out in your name, you must use only your

part of the benefits to see whether any benefits

are taxable to you. One-half of the part that be-

longs to your child must be added to your child's

other income to see whether any of those bene-

fits are taxable to your child.

Repayment of benefits. Any repayment of

benefits you made during 2023 must be sub-

tracted from the gross benefits you received in

2023. It doesn’t matter whether the repayment

was for a benefit you received in 2023 or in an

earlier year. If you repaid more than the gross

benefits you received in 2023, see Repayments

More Than Gross Benefits, later.

Your gross benefits are shown in box 3 of

Form SSA-1099 or RRB-1099. Your repayments

are shown in box 4. The amount in box 5 shows

your net benefits for 2023 (box 3 minus box 4).

Use the amount in box 5 to figure whether any

of your benefits are taxable.

Tax withholding and estimated tax. You can

choose to have federal income tax withheld

from your social security benefits and/or the

SSEB portion of your tier 1 railroad retirement

benefits. If you choose to do this, you must

complete a Form W-4V.

If you don’t choose to have income tax with-

held, you may have to request additional with-

holding from other income or pay estimated tax

during the year. For details, see chapter 4, ear-

lier; Pub. 505; or the Instructions for Form

1040-ES.

How To Report Your

Benefits

If part of your benefits are taxable, you must use

Form 1040 or 1040-SR.

Reporting on Form 1040 or 1040-SR. Report

your net benefits (the total amount from box 5 of

all your Forms SSA-1099 and Forms

RRB-1099) on line 6a and the taxable part on

line 6b. If you are married filing separately and

you lived apart from your spouse for all of 2023,

also enter “D” to the right of the word “benefits”

on line 6a.

Benefits not taxable. Report your net benefits

(the total amount from box 5 of all your Forms

SSA-1099 and Forms RRB-1099) on Form

1040 or 1040-SR, line 6a. Enter -0- on Form

1040 or 1040-SR, line 6b. If you are married fil-

ing separately and you lived apart from your

spouse for all of 2023, also enter “D” to the right

of the word “benefits” on Form 1040 or

1040-SR, line 6a.

How Much Is Taxable?

If part of your benefits are taxable, how much is

taxable depends on the total amount of your

benefits and other income. Generally, the higher

that total amount, the greater the taxable part of

your benefits.

Maximum taxable part. Generally, up to 50%

of your benefits will be taxable. However, up to

85% of your benefits can be taxable if either of

the following situations applies to you.

•

The total of one-half of your benefits and all

your other income is more than $34,000

($44,000 if you are married filing jointly).

•

You are married filing separately and lived

with your spouse at any time during 2023.

Which worksheet to use. A worksheet you

can use to figure your taxable benefits is in the

Instructions for Form 1040. You can use either

that worksheet or Worksheet 1 in Pub. 915, un-

less any of the following situations applies to

you.

1. You contributed to a traditional individual

retirement arrangement (IRA) and you or

your spouse is covered by a retirement

plan at work. In this situation, you must

use the special worksheets in Appendix B

of Pub. 590-A to figure both your IRA de-

duction and your taxable benefits.

2. Situation 1 doesn’t apply and you take an

exclusion for interest from qualified U.S.

savings bonds (Form 8815), for adoption

benefits (Form 8839), for foreign earned

income or housing (Form 2555), or for in-

come earned in American Samoa (Form

4563) or Puerto Rico by bona fide resi-

dents. In this situation, you must use

Worksheet 1 in Pub. 915 to figure your tax-

able benefits.

3. You received a lump-sum payment for an

earlier year. In this situation, also complete

Worksheet 2 or 3 and Worksheet 4 in Pub.

915. See Lump-sum election next.

Lump-sum election. You must include the tax-

able part of a lump-sum (retroactive) payment

of benefits received in 2023 in your 2023 in-

come, even if the payment includes benefits for

an earlier year.

Line 6c: Check the box on line 6c if you

elect to use the lump-sum election

method for your benefits. If any of your

benefits are taxable for 2023 and they include a

lump-sum benefit payment that was for an ear-

lier year, you may be able to reduce the taxable

amount with the lump-sum election. See

Lump-Sum Election in Pub. 915 for details.

This type of lump-sum benefit payment

shouldn’t be confused with the

lump-sum death benefit that both the

SSA and RRB pay to many of their beneficia-

ries. No part of the lump-sum death benefit is

subject to tax.

Generally, you use your 2023 income to fig-

ure the taxable part of the total benefits re-

ceived in 2023. However, you may be able to

figure the taxable part of a lump-sum payment

for an earlier year separately, using your income

for the earlier year. You can elect this method if

it lowers your taxable benefits.

Making the election. If you received a

lump-sum benefit payment in 2023 that includes

benefits for one or more earlier years, follow the

instructions in Pub. 915 under Lump-Sum Elec-

tion to see whether making the election will

lower your taxable benefits. That discussion

also explains how to make the election.

Because the earlier year's taxable ben-

efits are included in your 2023 income,

no adjustment is made to the earlier

year's return. Don’t file an amended return for

the earlier year.

Examples

The following are a few examples you can use

as a guide to figure the taxable part of your ben-

efits.

Example 1. George White is single and

files Form 1040 for 2023. He received the fol-

lowing income in 2023.

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64 Chapter 7 Social Security and Equivalent Railroad Retirement

Benefits

Publication 17 (2023)

Fully taxable pension ........ $18,600

Wages from part-time job ..... 9,400

Taxable interest income ...... 990

Total ..................

$28,990

George also received social security bene-

fits during 2023. The Form SSA-1099 he re-

ceived in January 2024 shows $5,980 in box 5.

To figure his taxable benefits, George com-

pletes the worksheet shown here.

Filled-in Worksheet 1.

Figuring Your Taxable Benefits

1. Enter the total amount from

box 5 of all your Forms

SSA-1099 and RRB-1099. Also

enter this amount on Form 1040

or 1040-SR, line 6a .......$5,980

2. Multiply line 1 by 50% (0.50) .......

2,990

3. Combine the amounts from Form 1040

or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7,

and 8 ...................

28,990

4. Enter the amount, if any, from Form

1040 or 1040-SR, line 2a ........

-0-

5. Enter the total of any exclusions/

adjustments for:

•

Adoption benefits (Form 8839,

line 28),

•

Foreign earned income or housing

(Form 2555, lines 45 and 50), and

•

Certain income of bona fide

residents of American Samoa

(Form 4563, line 15) or Puerto

Rico ........ ........

-0-

6. Combine lines 2, 3, 4, and 5 above ... 31,980

7. Enter the total of the amounts from

Schedule 1 (Form 1040), lines 11

through 20, and 23 and 25 ........

-0-

8. Is the amount on line 7 less than the

amount on line 6?

No.

STOP

None of your social security

benefits are taxable. Enter -0- on Form

1040 or 1040-SR, line 6b.

Yes. Subtract line 7 from line 6 .....31,980

9. If you are:

•

Married filing jointly, enter

$32,000; or

•

Single, head of household,

qualifying surviving spouse, or

married filing separately and you

lived apart from your spouse for

all of 2023, enter $25,000 .. ..

25,000

Note. If you are married filing separately

and you lived with your spouse at any

time in 2023, skip lines 9 through 16,

multiply line 8 by 85% (0.85), and enter

the result on line 17. Then, go to line 18.

10.

Is the amount on line 9 less than the

amount on line 8?

No.

STOP

None of your benefits are

taxable. Enter -0- on Form 1040 or

1040-SR, line 6b. If you are married

filing separately and you lived apart

from your spouse for all of 2023, be sure

you entered “D” to the right of the word

“benefits” on Form 1040 or 1040-SR,

line 6a.

Yes. Subtract line 9 from line 8 ..... 6,980

11.

Enter $12,000 if married filing jointly; or

$9,000 if single, head of household,

qualifying surviving spouse, or married

filing separately and you lived apart

from your spouse for all of 2023 .....

9,000

12.

Subtract line 11 from line 10. If zero or

less, enter -0- ...............

-0-

13.

Enter the smaller of line 10

or line 11 .................

6,980

14.

Multiply line 13 by 50% (0.50) ...... 3,490

15.

Enter the smaller of line 2 or line 14 .. 2,990

16.

Multiply line 12 by 85% (0.85). If line 12

is zero, enter -0- .............

-0-

17.

Add lines 15 and 16 ........... 2,990

18.

Multiply line 1 by 85% (0.85) ....... 5,083

19.

Taxable benefits. Enter the smaller of

line 17 or line 18. Also enter this amount

on Form 1040 or 1040-SR, line 6b ...

$2,990

The amount on line 19 of George's work-

sheet shows that $2,990 of his social security

benefits is taxable. On line 6a of his Form 1040,

George enters his net benefits of $5,980. On

line 6b, he enters his taxable benefits of $2,990.

Example 2. Ray and Alice Hopkins file a

joint return on Form 1040 for 2023. Ray is re-

tired and received a fully taxable pension of

$15,500. He also received social security bene-

fits, and his Form SSA-1099 for 2023 shows net

benefits of $5,600 in box 5. Alice worked during

the year and had wages of $14,000. She made

a deductible payment to her IRA account of

$1,000 and isn’t covered by a retirement plan at

work. Ray and Alice have two savings accounts

with a total of $250 in taxable interest income.

They complete Worksheet 1, shown below, en-

tering $29,750 ($15,500 + $14,000 + $250) on

line 3. They find none of Ray's social security

benefits are taxable. On Form 1040, they enter

$5,600 on line 6a and -0- on line 6b.

Filled-in Worksheet 1.

Figuring Your Taxable Benefits

1. Enter the total amount from

box 5 of all your Forms

SSA-1099 and RRB-1099. Also

enter this amount on Form 1040

or 1040-SR, line 6a ....... $5,600

2. Multiply line 1 by 50% (0.50) ...

2,800

3. Combine the amounts from Form

1040 or 1040-SR, lines 1z, 2b,

3b, 4b, 5b, 7, and 8 ........

29,750

4. Enter the amount, if any, from

Form 1040 or 1040-SR,

line 2a ...............

-0-

5. Enter the total of any exclusions/

adjustments for:

•

Adoption benefits (Form 8839,

line 28),

•

Foreign earned income or housing

(Form 2555, lines 45 and 50), and

•

Certain income of bona fide

residents of American Samoa

(Form 4563, line 15) or Puerto

Rico ........ ........

-0-

6. Combine lines 2, 3, 4, and 5

above ...............

32,550

7. Enter the total of the amounts

from Schedule 1 (Form 1040),

lines 11 through 20, and 23 and

25 .................

1,000

8. Is the amount on line 7 less than the

amount on line 6?

No.

STOP

None of your social security

benefits are taxable. Enter -0- on Form

1040 or 1040-SR, line 6b.

Yes. Subtract line 7 from

line 6 ...............

31,550

9. If you are:

•

Married filing jointly, enter

$32,000; or

•

Single, head of household,

qualifying surviving spouse, or

married filing separately and you

lived apart from your spouse for

all of 2023, enter $25,000 .. ..

32,000

Note. If you are married filing separately

and you lived with your spouse at any

time in 2023, skip lines 9 through 16,

multiply line 8 by 85% (0.85), and enter

the result on line 17. Then, go to line 18.

10.

Is the amount on line 9 less than the

amount on line 8?

No.

STOP

None of your benefits are

taxable. Enter -0- on Form 1040 or

1040-SR, line 6b. If you are married

filing separately and you lived apart

from your spouse for all of 2023, be sure

you entered “D” to the right of the word

“benefits” on Form 1040 or 1040-SR,

line 6a.

Yes. Subtract line 9 from line 8 .....

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Publication 17 (2023) Chapter 7 Social Security and Equivalent Railroad Retirement

Benefits

11.

Enter $12,000 if married filing jointly; or

$9,000 if single, head of household,

qualifying surviving spouse, or married

filing separately and you lived apart

from your spouse for all of 2023 .....

12.

Subtract line 11 from line 10. If zero or

less, enter -0- ...............

13.

Enter the smaller of line 10

or line 11 .................

14.

Multiply line 13 by 50% (0.50) ......

15.

Enter the smaller of line 2 or line 14 ..

16.

Multiply line 12 by 85% (0.85). If line 12

is zero, enter -0- .............

17.

Add lines 15 and 16 ...........

18.

Multiply line 1 by 85% (0.85) .......

19.

Taxable benefits. Enter the smaller of

line 17 or line 18. Also enter this amount

on Form 1040 or 1040-SR, line 6b ...

Example 3. Joe and Betty Johnson file a

joint return on Form 1040 for 2023. Joe is a re-

tired railroad worker and in 2023 received the

SSEB portion of tier 1 railroad retirement bene-

fits. Joe's Form RRB-1099 shows $10,000 in

box 5. Betty is a retired government worker and

received a fully taxable pension of $38,000.

They had $2,300 in taxable interest income plus

interest of $200 on a qualified U.S. savings

bond. The savings bond interest qualified for

the exclusion. They figure their taxable benefits

by completing Worksheet 1, shown below. Be-

cause they have qualified U.S. savings bond in-

terest, they follow the note at the beginning of

the worksheet and use the amount from line 2 of

their Schedule B (Form 1040) on line 3 of the

worksheet instead of the amount from line 2b of

their Form 1040. On line 3 of the worksheet,

they enter $40,500 ($38,000 + $2,500).

Filled-in Worksheet 1.

Figuring Your Taxable Benefits

Before you begin:

• If you are married filing separately and you lived

apart from your spouse for all of 2023, enter “D”

to the right of the word “benefits” on Form 1040

or 1040-SR, line 6a.

• Don’t use this worksheet if you repaid benefits

in 2023 and your total repayments (box 4 of

Forms SSA-1099 and RRB-1099) were more

than your gross benefits for 2023 (box 3 of

Forms SSA-1099 and RRB-1099). None of your

benefits are taxable for 2023. For more

information, see Repayments More Than Gross

Benefits, later.

• If you are filing Form 8815, Exclusion of Interest

From Series EE and I U.S. Savings Bonds

Issued After 1989, don’t include the amount

from line 2b of Form 1040 or 1040-SR on line 3

of this worksheet. Instead, include the amount

from Schedule B (Form 1040), line 2.

1. Enter the total amount from

box 5 of all your Forms

SSA-1099 and RRB-1099. Also

enter this amount on Form 1040

or 1040-SR, line 6a .......$10,000

2. Multiply line 1 by 50% (0.50) .......

5,000

3. Combine the amounts from Form 1040

or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7,

and 8 ...................

40,500

4. Enter the amount, if any, from Form

1040 or 1040-SR, line 2a ........

-0-

5. Enter the total of any exclusions/

adjustments for:

•

Adoption benefits (Form 8839,

line 28),

•

Foreign earned income or housing

(Form 2555, lines 45 and 50), and

•

Certain income of bona fide

residents of American Samoa

(Form 4563, line 15) or Puerto

Rico ........ ........

-0-

6. Combine lines 2, 3, 4, and 5 above ... 45,500

7. Enter the total of the amounts from

Schedule 1 (Form 1040), lines 11

through 20, and 23 and 25 ........

-0-

8. Is the amount on line 7 less than the

amount on line 6?

No.

STOP

None of your social security

benefits are taxable. Enter -0- on Form

1040 or 1040-SR, line 6b.

Yes. Subtract line 7 from line 6 .....45,500

9. If you are:

•

Married filing jointly, enter

$32,000; or

•

Single, head of household,

qualifying surviving spouse, or

married filing separately and you

lived apart from your spouse for

all of 2023, enter $25,000 .. ..

32,000

Note. If you are married filing separately

and you lived with your spouse at any

time in 2023, skip lines 9 through 16,

multiply line 8 by 85% (0.85), and enter

the result on line 17. Then, go to line 18.

10.

Is the amount on line 9 less than the

amount on line 8?

No.

STOP

None of your benefits are

taxable. Enter -0- on Form 1040 or

1040-SR, line 6b. If you are married

filing separately and you lived apart

from your spouse for all of 2023, be sure

you entered “D” to the right of the word

“benefits” on Form 1040 or 1040-SR,

line 6a.

Yes. Subtract line 9 from line 8 .....13,500

11.

Enter $12,000 if married filing jointly; or

$9,000 if single, head of household,

qualifying surviving spouse, or married

filing separately and you lived apart

from your spouse for all of 2023 .....

12,000

12.

Subtract line 11 from line 10. If zero or

less, enter -0- ...............

1,500

13.

Enter the smaller of line 10

or line 11 .................

12,000

14.

Multiply line 13 by 50% (0.50) ...... 6,000

15.

Enter the smaller of line 2 or line 14 .. 5,000

16.

Multiply line 12 by 85% (0.85). If line 12

is zero, enter -0- .............

1,275

17.

Add lines 15 and 16 ........... 6,275

18.

Multiply line 1 by 85% (0.85) ....... 8,500

19.

Taxable benefits. Enter the smaller of

line 17 or line 18. Also enter this amount

on Form 1040 or 1040-SR, line 6b ...

$6,275

More than 50% of Joe's net benefits are tax-

able because the income on line 8 of the work-

sheet ($45,500) is more than $44,000. (See

Maximum taxable part under How Much Is Tax-

able, earlier.) Joe and Betty enter $10,000 on

Form 1040, line 6a; and $6,275 on Form 1040,

line 6b.

Deductions Related to

Your Benefits

You may be entitled to deduct certain amounts

related to the benefits you receive.

Disability payments. You may have received

disability payments from your employer or an in-

surance company that you included as income

on your tax return in an earlier year. If you re-

ceived a lump-sum payment from the SSA or

RRB, and you had to repay the employer or in-

surance company for the disability payments,

you can take an itemized deduction for the part

of the payments you included in gross income

in the earlier year. If the amount you repay is

more than $3,000, you may be able to claim a

tax credit instead. Claim the deduction or credit

in the same way explained under Repayment of

benefits received in an earlier year under Re-

payments More Than Gross Benefits next.

Repayments More Than

Gross Benefits

In some situations, your Form SSA-1099 or

RRB-1099 will show that the total benefits you

repaid (box 4) are more than the gross benefits

(box 3) you received. If this occurred, your net

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66 Chapter 7 Social Security and Equivalent Railroad Retirement

Benefits

Publication 17 (2023)

benefits in box 5 will be a negative figure (a fig-

ure in parentheses) and none of your benefits

will be taxable. Don’t use a worksheet in this

case. If you receive more than one form, a neg-

ative figure in box 5 of one form is used to offset

a positive figure in box 5 of another form for that

same year.

If you have any questions about this nega-

tive figure, contact your local SSA office or your

local RRB field office.

Joint return. If you and your spouse file a joint

return, and your Form SSA-1099 or RRB-1099

has a negative figure in box 5, but your spouse's

doesn’t, subtract the amount in box 5 of your

form from the amount in box 5 of your spouse's

form. You do this to get your net benefits when

figuring if your combined benefits are taxable.

Example. John and Mary file a joint return

for 2023. John received Form SSA-1099 show-

ing $3,000 in box 5. Mary also received Form

SSA-1099 and the amount in box 5 was ($500).

John and Mary will use $2,500 ($3,000 minus

$500) as the amount of their net benefits when

figuring if any of their combined benefits are tax-

able.

Repayment of benefits received in an ear-

lier year. If the total amount shown in box 5 of

all of your Forms SSA-1099 and RRB-1099 is a

negative figure, you may be able to deduct part

of this negative figure that represents benefits

you included in gross income in an earlier year if

the figure is more than $3,000. If the figure is

$3,000 or less, it is a miscellaneous itemized

deduction and can no longer be deducted.

Deduction more than $3,000. If this de-

duction is more than $3,000, you should figure

your tax two ways.

1. Figure your tax for 2023 with the itemized

deduction included on Schedule A (Form

1040), line 16.

2. Figure your tax for 2023 in the following

steps.

a. Figure the tax without the itemized de-

duction included on Schedule A

(Form 1040), line 16.

b. For each year after 1983 for which

part of the negative figure represents

a repayment of benefits, refigure your

taxable benefits as if your total bene-

fits for the year were reduced by that

part of the negative figure. Then refig-

ure the tax for that year.

c. Subtract the total of the refigured tax

amounts in (b) from the total of your

actual tax amounts.

d. Subtract the result in (c) from the re-

sult in (a).

Compare the tax figured in methods 1 and 2.

Your tax for 2023 is the smaller of the two

amounts. If method 1 results in less tax, take

the itemized deduction on Schedule A (Form

1040), line 16. If method 2 results in less tax,

claim a credit for the amount from step 2c

above on Schedule 3 (Form 1040), line 13z. En-

ter “I.R.C. 1341” on the entry line. If both meth-

ods produce the same tax, deduct the repay-

ment on Schedule A (Form 1040), line 16.

Other Income

What’s New

Temporary allowance of 100% business

meal deduction has expired. Section 210 of

the Taxpayer Certainty and Disaster Tax Relief

Act of 2020 provided for the temporary allow-

ance of a 100% business meal deduction for

food or beverages provided by a restaurant and

paid or incurred after December 31, 2020, and

before January 1, 2023.

Reminders

Unemployment compensation. If you re-

ceived unemployment compensation but did not

receive Form 1099-G, Certain Government Pay-

ments, through the mail, you may need to ac-

cess your information through your state’s web-

site to get your electronic Form 1099-G.

Introduction

You must include on your return all items of in-

come you receive in the form of money, prop-

erty, and services unless the tax law states that

you don’t include them. Some items, however,

are only partly excluded from income. This

chapter discusses many kinds of income and

explains whether they’re taxable or nontaxable.

•

Income that’s taxable must be reported on

your tax return and is subject to tax.

•

Income that’s nontaxable may have to be

shown on your tax return but isn’t taxable.

This chapter begins with discussions of the

following income items.

•

Bartering.

•

Canceled debts.

•

Sales parties at which you’re the host or

hostess.

•

Life insurance proceeds.

•

Partnership income.

•

S corporation income.

•

Recoveries (including state income tax re-

funds).

•

Rents from personal property.

•

Repayments.

•

Royalties.

•

Unemployment benefits.

•

Welfare and other public assistance bene-

fits.

These discussions are followed by brief discus-

sions of other income items.

Useful Items

You may want to see:

Publication

502 Medical and Dental Expenses

504 Divorced or Separated Individuals

523 Selling Your Home

525 Taxable and Nontaxable Income

544 Sales and Other Dispositions of

Assets

547 Casualties, Disasters, and Thefts

550 Investment Income and Expenses

4681 Canceled Debts, Foreclosures,

Repossessions, and Abandonments

For these and other useful items, go to IRS.gov/

Forms.

Bartering

Bartering is an exchange of property or serv-

ices. You must include in your income, at the

time received, the fair market value of property

or services you receive in bartering. If you ex-

change services with another person and you

both have agreed ahead of time on the value of

the services, that value will be accepted as fair

market value unless the value can be shown to

be otherwise.

Generally, you report this income on Sched-

ule C (Form 1040), Profit or Loss From Busi-

ness. However, if the barter involves an ex-

change of something other than services, such

as in Example 3 below, you may have to use an-

other form or schedule instead.

Example 1. You’re a self-employed attor-

ney who performs legal services for a client, a

small corporation. The corporation gives you

shares of its stock as payment for your services.

You must include the fair market value of the

shares in your income on Schedule C (Form

1040) in the year you receive them.

Example 2. You’re self-employed and a

member of a barter club. The club uses “credit

units” as a means of exchange. It adds credit

units to your account for goods or services you

provide to members, which you can use to pur-

chase goods or services offered by other mem-

bers of the barter club. The club subtracts credit

units from your account when you receive

goods or services from other members. You

must include in your income the value of the

credit units that are added to your account,

even though you may not actually receive goods

or services from other members until a later tax

year.

Example 3. You own a small apartment

building. In return for 6 months rent-free use of

an apartment, an artist gives you a work of art

she created. You must report as rental income

on Schedule E (Form 1040), Supplemental In-

come and Loss, the fair market value of the art-

work, and the artist must report as income on

Schedule C (Form 1040) the fair rental value of

the apartment.

502

504

523

525

544

547

550

4681

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Publication 17 (2023) Chapter 8 Other Income 67

Form 1099-B from barter exchange. If you

exchanged property or services through a bar-

ter exchange, Form 1099-B, Proceeds From

Broker and Barter Exchange Transactions, or a

similar statement from the barter exchange

should be sent to you by February 15, 2024. It

should show the value of cash, property, serv-

ices, credits, or scrip you received from ex-

changes during 2023. The IRS will also receive

a copy of Form 1099-B.

Canceled Debts

In most cases, if a debt you owe is canceled or

forgiven, other than as a gift or bequest, you

must include the canceled amount in your in-

come. You have no income from the canceled

debt if it’s intended as a gift to you. A debt in-

cludes any indebtedness for which you’re liable

or which attaches to property you hold.

If the debt is a nonbusiness debt, report the

canceled amount on Schedule 1 (Form 1040),

line 8c. If it’s a business debt, report the amount

on Schedule C (Form 1040) (or on Schedule F

(Form 1040), Profit or Loss From Farming, if the

debt is farm debt and you’re a farmer).

Form 1099-C. If a federal government agency,

financial institution, or credit union cancels or

forgives a debt you owe of $600 or more, you

will receive a Form 1099-C, Cancellation of

Debt. The amount of the canceled debt is

shown in box 2.

Interest included in canceled debt. If any

interest is forgiven and included in the amount

of canceled debt in box 2, the amount of inter-

est will also be shown in box 3. Whether or not

you must include the interest portion of the can-

celed debt in your income depends on whether

the interest would be deductible when you paid

it. See Deductible debt under Exceptions, later.

If the interest wouldn’t be deductible (such

as interest on a personal loan), include in your

income the amount from box 2 of Form 1099-C.

If the interest would be deductible (such as on a

business loan), include in your income the net

amount of the canceled debt (the amount

shown in box 2 less the interest amount shown

in box 3).

Discounted mortgage loan. If your financial

institution offers a discount for the early pay-

ment of your mortgage loan, the amount of the

discount is canceled debt. You must include the

canceled amount in your income.

Mortgage relief upon sale or other disposi-

tion. If you’re personally liable for a mortgage

(recourse debt), and you’re relieved of the mort-

gage when you dispose of the property, you

may realize gain or loss up to the fair market

value of the property. Also, to the extent the

mortgage discharge exceeds the fair market

value of the property, it’s income from discharge

of indebtedness unless it qualifies for exclusion

under Excluded debt, later. Report any income

from discharge of indebtedness on nonbusi-

ness debt that doesn’t qualify for exclusion as

other income on Schedule 1 (Form 1040),

line 8c.

If you aren’t personally liable for a mortgage

(nonrecourse debt), and you’re relieved of the

mortgage when you dispose of the property

(such as through foreclosure), that relief is

included in the amount you realize. You may

have a taxable gain if the amount you realize ex-

ceeds your adjusted basis in the property. Re-

port any gain on nonbusiness property as a

capital gain.

See Pub. 4681 for more information.

Stockholder debt. If you’re a stockholder in a

corporation and the corporation cancels or for-

gives your debt to it, the canceled debt is a con-

structive distribution that’s generally dividend in-

come to you. For more information, see Pub.

542, Corporations.

If you’re a stockholder in a corporation and

you cancel a debt owed to you by the corpora-

tion, you generally don’t realize income. This is

because the canceled debt is considered as a

contribution to the capital of the corporation

equal to the amount of debt principal that you

canceled.

Repayment of canceled debt. If you included

a canceled amount in your income and later pay

the debt, you may be able to file a claim for re-

fund for the year the amount was included in in-

come. You can file a claim on Form 1040-X,

Amended U.S. Individual Income Tax Return, if

the statute of limitations for filing a claim is still

open. The statute of limitations generally

doesn’t end until 3 years after the due date of

your original return.

Exceptions

There are several exceptions to the inclusion of

canceled debt in income. These are explained

next.

Student loans. Generally, if you are responsi-

ble for making loan payments, and the loan is

canceled or repaid by someone else, you must

include the amount that was canceled or paid

on your behalf in your gross income for tax pur-

poses. However, in certain circumstances, you

may be able to exclude amounts from gross in-

come as a result of the cancellation or repay-

ment of certain student loans. These exclusions

are for:

•

Student loan cancellation due to meeting

certain work requirements;

•

Cancellation of certain loans after Decem-

ber 31, 2020, and before January 1, 2026

(see Special rule for student loan dis-

charges for 2021 through 2025); or

•

Certain student loan repayment assistance

programs.

Exclusion for student loan cancellation due

to meeting certain work requirements. If

your student loan is canceled in part or in whole

in 2023 due to meeting certain work require-

ments, you may not have to include the can-

celed debt in your income. To qualify for this

work-related exclusion, your loan must have

been made by a qualified lender to assist you in

attending an eligible educational organization

described in section 170(b)(1)(A)(ii). In addition,

the cancellation must be pursuant to a provision

in the student loan that all or part of the debt will

be canceled if you work:

•

For a certain period of time,

•

In certain professions, and

•

For any of a broad class of employers.

The cancellation of your loan won’t

qualify for tax-free treatment if it was

made by an educational organization or

tax-exempt section 501(c)(3) organization and

was canceled because of the services you per-

formed for either organization. See Exception,

later.

Educational organization described in

section 170(b)(1)(A)(ii). This is an educa-

tional organization that maintains a regular fac-

ulty and curriculum and normally has a regularly

enrolled body of students in attendance at the

place where it carries on its educational activi-

ties.

Qualified lenders. These include the fol-

lowing.

1. The United States, or an instrumentality or

agency thereof.

2. A state or territory of the United States; or

the District of Columbia; or any political

subdivision thereof.

3. A public benefit corporation that is tax-ex-

empt under section 501(c)(3); and that

has assumed control of a state, county, or

municipal hospital; and whose employees

are considered public employees under

state law.

4. An educational organization described in

section 170(b)(1)(A)(ii), if the loan is

made:

a. As part of an agreement with an entity

described in (1), (2), or (3) under

which the funds to make the loan were

provided to the educational organiza-

tion; or

b. Under a program of the educational

organization that is designed to en-

courage its students to serve in occu-

pations with unmet needs or in areas

with unmet needs where services pro-

vided by the students (or former stu-

dents) are for or under the direction of

a governmental unit or a tax-exempt

section 501(c)(3) organization.

Special rule for student loan discharges for

2021 through 2025. The American Rescue

Plan Act of 2021 modified the treatment of stu-

dent loan forgiveness for discharges in 2021

through 2025. Generally, if you are responsible

for making loan payments, and the loan is can-

celed or repaid by someone else, you must in-

clude the amount that was canceled or paid on

your behalf in your gross income for tax purpo-

ses. However, in certain circumstances, you

may be able to exclude this amount from gross

income if the loan was one of the following.

•

A loan for postsecondary educational ex-

penses.

•

A private education loan.

•

A loan from an educational organization

described in section 170(b)(1)(A)(ii).

•

A loan from an organization exempt from

tax under section 501(a) to refinance a stu-

dent loan.

See Pub. 4681 and Pub. 970 for more informa-

tion.

CAUTION

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68 Chapter 8 Other Income Publication 17 (2023)

Loan for postsecondary educational expen-

ses. This is any loan provided expressly for

postsecondary education, regardless of

whether provided through the educational or-

ganization or directly to the borrower, if such

loan was made, insured, or guaranteed by one

of the following.

•

The United States, or an instrumentality or

agency thereof.

•

A state or territory of the United States; or

the District of Columbia; or any political

subdivision thereof.

•

An eligible educational organization.

Eligible educational organization. An eligi-

ble educational organization is generally any

accredited public, nonprofit, or proprietary (pri-

vately owned profit-making) college, university,

vocational school, or other postsecondary edu-

cational organization. Also, the organization

must be eligible to participate in a student aid

program administered by the U.S. Department

of Education.

An eligible educational organization also in-

cludes certain educational organizations loca-

ted outside the United States that are eligible to

participate in a student aid program adminis-

tered by the U.S. Department of Education.

The educational organization should

be able to tell you if it is an eligible edu-

cational organization.

Private education loan. A private education

loan is a loan provided by a private educational

lender that:

•

Is not made, insured, or guaranteed under

Title IV of the Higher Education Act of

1965; and

•

Is issued expressly for postsecondary edu-

cational expenses to a borrower, regard-

less of whether the loan is provided

through the educational organization that

the student attends or directly to the bor-

rower from the private educational lender.

A private education loan does not include

an extension of credit under an open end

consumer credit plan, a reverse mortgage

transaction, a residential mortgage trans-

action, or any other loan that is secured by

real property or a dwelling.

Private educational lender. A private educa-

tional lender is one of the following.

•

A financial institution that solicits, makes,

or extends private education loans.

•

A federal credit union that solicits, makes

or extends private education loans.

•

Any other person engaged in the business

of soliciting, making, or extending private

education loans.

The cancellation of your loan won’t

qualify for tax-free treatment if it is can-

celed because of services you per-

formed for the private educational lender that

made the loan or other organization that provi-

ded the funds.

Loan from an educational organization de-

scribed in section 170(b)(1)(A)(ii). This is

TIP

CAUTION

any loan made by the organization if the loan is

made:

•

As part of an agreement with an entity de-

scribed earlier under which the funds to

make the loan were provided to the educa-

tional organization; or

•

Under a program of the educational organi-

zation that is designed to encourage its

students to serve in occupations with un-

met needs or in areas with unmet needs

where the services provided by the stu-

dents (or former students) are for or under

the direction of a governmental unit or

tax-exempt section 501(c)(3) organization.

Educational organization described in sec-

tion 170(b)(1)(A)(ii). This is an educational

organization that maintains a regular faculty and

curriculum and normally has a regularly enrolled

body of students in attendance at the place

where it carries on its educational activities.

The cancellation of your loan won’t

qualify for tax-free treatment if it was

made by an educational organization, a

tax-exempt section 501(c)(3) organization, or a

private education lender (as defined in section

140(a)(7) of the Truth in Lending Act) and was

canceled because of the services you per-

formed for either such organization or private

education lender. See Exception, later.

Section 501(c)(3) organization. This is

any corporation, community chest, fund, or

foundation organized and operated exclusively

for one or more of the following purposes.

•

Charitable.

•

Religious.

•

Educational.

•

Scientific.

•

Literary.

•

Testing for public safety.

•

Fostering national or international amateur

sports competition (but only if none of its

activities involve providing athletic facilities

or equipment).

•

The prevention of cruelty to children or ani-

mals.

Exception. In most cases, the cancellation

of a student loan made by an educational or-

ganization because of services you performed

for that organization or another organization that

provided the funds for the loan must be inclu-

ded in gross income on your tax return.

Refinanced loan. If you refinanced a stu-

dent loan with another loan from an eligible ed-

ucational organization or a tax-exempt organi-

zation, that loan may also be considered as

made by a qualified lender. The refinanced loan

is considered made by a qualified lender if it’s

made under a program of the refinancing organ-

ization that is designed to encourage students

to serve in occupations with unmet needs or in

areas with unmet needs where the services re-

quired of the students are for or under the direc-

tion of a governmental unit or a tax-exempt sec-

tion 501(c)(3) organization.

CAUTION

Student loan repayment assistance. Stu-

dent loan repayments made to you are tax free

if you received them for any of the following.

•

The National Health Service Corps

(NHSC) Loan Repayment Program.

•

A state education loan repayment program

eligible for funds under the Public Health

Service Act.

•

Any other state loan repayment or loan for-

giveness program that is intended to pro-

vide for the increased availability of health

services in underserved or health profes-

sional shortage areas (as determined by

such a state).

You can’t deduct the interest you paid

on a student loan to the extent pay-

ments were made through your partici-

pation in any of the above programs.

Deductible debt. You don’t have income from

the cancellation of a debt if your payment of the

debt would be deductible. This exception ap-

plies only if you use the cash method of ac-

counting. For more information, see chapter 5 of

Pub. 334, Tax Guide for Small Business.

Price reduced after purchase. In most ca-

ses, if the seller reduces the amount of debt you

owe for property you purchased, you don’t have

income from the reduction. The reduction of the

debt is treated as a purchase price adjustment

and reduces your basis in the property.

Excluded debt. Don’t include a canceled debt

in your gross income in the following situations.

•

The debt is canceled in a bankruptcy case

under title 11 of the U.S. Code. See Pub.

908, Bankruptcy Tax Guide.

•

The debt is canceled when you’re insol-

vent. However, you can’t exclude any

amount of canceled debt that’s more than

the amount by which you’re insolvent. See

Pub. 908.

•

The debt is qualified farm debt and is can-

celed by a qualified person. See chapter 3

of Pub. 225, Farmer's Tax Guide.

•

The debt is qualified real property business

debt. See chapter 5 of Pub. 334.

•

The cancellation is intended as a gift.

•

The debt is qualified principal residence in-

debtedness.

Forgiveness of Paycheck Protection Pro-

gram (PPP) loans. The forgiveness of a PPP

loan creates tax-exempt income, so although

you don't need to report the income from the

forgiveness of your PPP loan on Form 1040 or

1040-SR, you do need to report certain informa-

tion related to your PPP loan.

Rev. Proc. 2021-48, 2021-49 I.R.B. 835, per-

mits taxpayers to treat tax-exempt income re-

sulting from the forgiveness of a PPP loan as re-

ceived or accrued (1) as, and to the extent that,

eligible expenses are paid or incurred; (2) when

you apply for forgiveness of the PPP loan; or (3)

when forgiveness of the PPP loan is granted. If

you have tax-exempt income resulting from the

forgiveness of a PPP loan, attach a statement to

your return reporting each tax year for which

you are applying Rev. Proc. 2021-48, and which

section of Rev. Proc. 2021-48 you are applying–

CAUTION

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Publication 17 (2023) Chapter 8 Other Income 69

either section 3.01(1), (2), or (3). Any statement

should include the following information for

each PPP loan.

1. Your name, address, and ITIN or SSN;

2. A statement that you are applying or ap-

plied section 3.01(1), (2), or (3) of Rev.

Proc. 2021-48, and for what tax year;

3. The amount of tax-exempt income from

forgiveness of the PPP loan that you are

treating as received or accrued and for

what tax year; and

4. Whether forgiveness of the PPP loan has

been granted as of the date you file your

return.

Write “RP 2021-48” at the top of your at-

tached statement.

Host

If you host a party or event at which sales are

made, any gift or gratuity you receive for giving

the event is a payment for helping a direct seller

make sales. You must report this item as in-

come at its fair market value.

Your out-of-pocket party expenses are sub-

ject to the 50% limit for meal expenses. For tax

years 2018 and after, no deduction is allowed

for any expenses related to activities generally

considered entertainment, amusement, or rec-

reation. Taxpayers may continue to deduct 50%

of the cost of business meals if the taxpayer (or

an employee of the taxpayer) is present and the

food or beverages are not considered lavish or

extravagant. The meals may be provided to a

current or potential business customer, client,

consultant, or similar business contact. Food

and beverages that are provided during enter-

tainment events will not be considered enter-

tainment if purchased separately from the

event.

For more information about the limit for meal

expenses, see Pub. 463, Travel, Gift, and Car

Expenses.

Life Insurance

Proceeds

Life insurance proceeds paid to you because of

the death of the insured person aren’t taxable

unless the policy was turned over to you for a

price. This is true even if the proceeds were

paid under an accident or health insurance pol-

icy or an endowment contract. However, inter-

est income received as a result of life insurance

proceeds may be taxable.

Proceeds not received in installments. If

death benefits are paid to you in a lump sum or

other than at regular intervals, include in your in-

come only the benefits that are more than the

amount payable to you at the time of the insured

person's death. If the benefit payable at death

isn’t specified, you include in your income the

benefit payments that are more than the present

value of the payments at the time of death.

Proceeds received in installments. If you

receive life insurance proceeds in installments,

you can exclude part of each installment from

your income.

To determine the excluded part, divide the

amount held by the insurance company (gener-

ally, the total lump sum payable at the death of

the insured person) by the number of install-

ments to be paid. Include anything over this ex-

cluded part in your income as interest.

Surviving spouse. If your spouse died be-

fore October 23, 1986, and insurance proceeds

paid to you because of the death of your spouse

are received in installments, you can exclude up

to $1,000 a year of the interest included in the

installments. If you remarry, you can continue to

take the exclusion.

Surrender of policy for cash. If you surren-

der a life insurance policy for cash, you must in-

clude in income any proceeds that are more

than the cost of the life insurance policy. In most

cases, your cost (or investment in the contract)

is the total of premiums that you paid for the life

insurance policy, less any refunded premiums,

rebates, dividends, or unrepaid loans that

weren’t included in your income.

You should receive a Form 1099-R showing

the total proceeds and the taxable part. Report

these amounts on lines 5a and 5b of Form 1040

or 1040-SR.

More information. For more information, see

Life Insurance Proceeds in Pub. 525.

Endowment Contract

Proceeds

An endowment contract is a policy under which

you’re paid a specified amount of money on a

certain date unless you die before that date, in

which case the money is paid to your designa-

ted beneficiary. Endowment proceeds paid in a

lump sum to you at maturity are taxable only if

the proceeds are more than the cost of the pol-

icy. To determine your cost, subtract any

amount that you previously received under the

contract and excluded from your income from

the total premiums (or other consideration) paid

for the contract. Include in your income the part

of the lump-sum payment that’s more than your

cost.

Accelerated Death

Benefits

Certain amounts paid as accelerated death

benefits under a life insurance contract or viati-

cal settlement before the insured's death are ex-

cluded from income if the insured is terminally

or chronically ill.

Viatical settlement. This is the sale or assign-

ment of any part of the death benefit under a life

insurance contract to a viatical settlement pro-

vider. A viatical settlement provider is a person

who regularly engages in the business of buy-

ing or taking assignment of life insurance con-

tracts on the lives of insured individuals who are

terminally or chronically ill and who meets the

requirements of section 101(g)(2)(B) of the In-

ternal Revenue Code.

Exclusion for terminal illness. Accelerated

death benefits are fully excludable if the insured

is a terminally ill individual. This is a person who

has been certified by a physician as having an

illness or physical condition that can reasonably

be expected to result in death within 24 months

from the date of the certification.

Exclusion for chronic illness. If the insured is

a chronically ill individual who’s not terminally ill,

accelerated death benefits paid on the basis of

costs incurred for qualified long-term care serv-

ices are fully excludable. Accelerated death

benefits paid on a per diem or other periodic ba-

sis are excludable up to a limit. For 2023, this

limit is $420. It applies to the total of the accel-

erated death benefits and any periodic pay-

ments received from long-term care insurance

contracts. For information on the limit and the

definitions of chronically ill individual, qualified

long-term care services, and long-term care in-

surance contracts, see Long-Term Care Insur-

ance Contracts under Sickness and Injury Ben-

efits in Pub. 525.

Exception. The exclusion doesn’t apply to any

amount paid to a person (other than the in-

sured) who has an insurable interest in the life

of the insured because the insured:

•

Is a director, officer, or employee of the

person; or

•

Has a financial interest in the person's

business.

Form 8853. To claim an exclusion for acceler-

ated death benefits made on a per diem or

other periodic basis, you must file Form 8853,

Archer MSAs and Long-Term Care Insurance

Contracts, with your return. You don’t have to

file Form 8853 to exclude accelerated death

benefits paid on the basis of actual expenses

incurred.

Public Safety Officer Killed

or Injured in the Line of

Duty

A spouse, former spouse, and child of a public

safety officer killed in the line of duty can ex-

clude from gross income survivor benefits re-

ceived from a governmental section 401(a) plan

attributable to the officer’s service. See section

101(h).

A public safety officer who’s permanently

and totally disabled or killed in the line of duty

and a surviving spouse or child can exclude

from income death or disability benefits re-

ceived from the federal Bureau of Justice Assis-

tance or death benefits paid by a state program.

See section 104(a)(6).

For this purpose, the term “public safety offi-

cer” includes law enforcement officers, firefight-

ers, chaplains, and rescue squad and ambu-

lance crew members. For more information, see

Pub. 559, Survivors, Executors, and Administra-

tors.

Partnership Income

A partnership generally isn’t a taxable entity.

The income, gains, losses, deductions, and

credits of a partnership are passed through to

the partners based on each partner's distribu-

tive share of these items.

Schedule K-1 (Form 1065). Although a part-

nership generally pays no tax, it must file an in-

formation return on Form 1065, U.S. Return of

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70 Chapter 8 Other Income Publication 17 (2023)

Partnership Income, and send Schedule K-1

(Form 1065) to each partner. In addition, the

partnership will send each partner a copy of the

Partner's Instructions for Schedule K-1 (Form

1065) to help each partner report his or her

share of the partnership's income, deductions,

credits, and tax preference items.

Keep Schedule K-1 (Form 1065) for

your records. Don’t attach it to your

Form 1040 or 1040-SR, unless you’re

specifically required to do so.

For more information on partnerships, see

Pub. 541, Partnerships.

Qualified joint venture. If you and your

spouse each materially participate as the only

members of a jointly owned and operated busi-

ness, and you file a joint return for the tax year,

you can make a joint election to be treated as a

qualified joint venture instead of a partnership.

To make this election, you must divide all items

of income, gain, loss, deduction, and credit at-

tributable to the business between you and your

spouse in accordance with your respective in-

terests in the venture. For further information on

how to make the election and which sched-

ule(s) to file, see the instructions for your indi-

vidual tax return.

S Corporation Income

In most cases, an S corporation doesn’t pay tax

on its income. Instead, the income, losses, de-

ductions, and credits of the corporation are

passed through to the shareholders based on

each shareholder's pro rata share.

Schedule K-1 (Form 1120-S). An S corpora-

tion must file a return on Form 1120-S, U.S. In-

come Tax Return for an S Corporation, and

send Schedule K-1 (Form 1120-S) to each

shareholder. In addition, the S corporation will

send each shareholder a copy of the Share-

holder's Instructions for Schedule K-1 (Form

1120-S) to help each shareholder report her or

his share of the S corporation's income, losses,

credits, and deductions.

Keep Schedule K-1 (Form 1120-S) for

your records. Don’t attach it to your

Form 1040 or 1040-SR, unless you’re

specifically required to do so.

For more information on S corporations and

their shareholders, see the Instructions for Form

1120-S.

Recoveries

A recovery is a return of an amount you deduc-

ted or took a credit for in an earlier year. The

most common recoveries are refunds, reim-

bursements, and rebates of deductions item-

ized on Schedule A (Form 1040). You may also

have recoveries of nonitemized deductions

(such as payments on previously deducted bad

debts) and recoveries of items for which you

previously claimed a tax credit.

Tax benefit rule. You must include a recovery

in your income in the year you receive it up to

the amount by which the deduction or credit you

took for the recovered amount reduced your tax

in the earlier year. For this purpose, any in-

RECORDS

crease to an amount carried over to the current

year that resulted from the deduction or credit is

considered to have reduced your tax in the ear-

lier year. For more information, see Pub. 525.

Federal income tax refund. Refunds of fed-

eral income taxes aren’t included in your in-

come because they’re never allowed as a de-

duction from income.

State tax refund. If you received a state or lo-

cal income tax refund (or credit or offset) in

2023, you must generally include it in income if

you deducted the tax in an earlier year. The

payer should send Form 1099-G to you by Jan-

uary 31, 2024. The IRS will also receive a copy

of the Form 1099-G. If you file Form 1040 or

1040-SR, use the State and Local Income Tax

Refund Worksheet in the 2023 instructions for

Schedule 1 (Form 1040) to figure the amount (if

any) to include in your income. See Pub. 525 for

when you must use another worksheet.

If you could choose to deduct for a tax year

either:

•

State and local income taxes, or

•

State and local general sales taxes, then

the maximum refund that you may have to in-

clude in income is limited to the excess of the

tax you chose to deduct for that year over the

tax you didn’t choose to deduct for that year.

For examples, see Pub. 525.

Mortgage interest refund. If you received a

refund or credit in 2023 of mortgage interest

paid in an earlier year, the amount should be

shown in Form 1098, box 4, Mortgage Interest

Statement. Don’t subtract the refund amount

from the interest you paid in 2023. You may

have to include it in your income under the rules

explained in the following discussions.

Interest on recovery. Interest on any of the

amounts you recover must be reported as inter-

est income in the year received. For example,

report any interest you received on state or local

income tax refunds on Form 1040, 1040-SR, or

1040-NR, line 2b.

Recovery and expense in same year. If the

refund or other recovery and the expense occur

in the same year, the recovery reduces the de-

duction or credit and isn’t reported as income.

Recovery for 2 or more years. If you receive

a refund or other recovery that’s for amounts

you paid in 2 or more separate years, you must

allocate, on a pro rata basis, the recovered

amount between the years in which you paid it.

This allocation is necessary to determine the

amount of recovery from any earlier years and

to determine the amount, if any, of your allowa-

ble deduction for this item for the current year.

For information on how to figure the allocation,

see Recoveries in Pub. 525.

Itemized Deduction

Recoveries

If you recover any amount that you deducted in

an earlier year on Schedule A (Form 1040), you

must generally include the full amount of the re-

covery in your income in the year you receive it.

Where to report. Enter your state or local in-

come tax refund on Schedule 1 (Form 1040),

line 1, and the total of all other recoveries as

other income on Schedule 1 (Form 1040),

line 8z.

Standard deduction limit. You are generally

allowed to claim the standard deduction if you

don’t itemize your deductions. Only your item-

ized deductions that are more than your stand-

ard deduction are subject to the recovery rule

(unless you’re required to itemize your deduc-

tions). If your total deductions on the earlier

year return weren’t more than your income for

that year, include in your income this year the

lesser of:

•

Your recoveries, or

•

The amount by which your itemized deduc-

tions exceeded the standard deduction.

Example. For 2022, you filed a joint return.

Your taxable income was $60,000 and you

weren’t entitled to any tax credits. Your standard

deduction was $25,900, and you had itemized

deductions of $27,400. In 2023, you received

the following recoveries for amounts deducted

on your 2022 return.

Medical expenses

............... $200

State and local income tax refund ....... 400

Refund of mortgage interest .......... 325

Total recoveries ................ $925

None of the recoveries were more than the de-

ductions taken for 2022. The difference be-

tween the state and local income tax you de-

ducted and your local general sales tax was

more than $400.

Your total recoveries are less than the

amount by which your itemized deductions ex-

ceeded the standard deduction ($27,400 −

$25,900 = $1,500), so you must include your to-

tal recoveries in your income for 2023. Report

the state and local income tax refund of $400

on Schedule 1 (Form 1040), line 1, and the bal-

ance of your recoveries, $525, on Schedule 1

(Form 1040), line 8z.

Standard deduction for earlier years. To

determine if amounts recovered in the current

year must be included in your income, you must

know the standard deduction for your filing sta-

tus for the year the deduction was claimed.

Look in the instructions for your tax return from

prior years to locate the standard deduction for

the filing status for that prior year. If you filed

Form 1040-NR, you couldn’t claim the standard

deduction except for certain nonresident aliens

from India (see Pub. 519).

Example. You filed a joint return on Form

1040 for 2022 with taxable income of $45,000.

Your itemized deductions were $26,150. The

standard deduction that you could have claimed

was $25,900. In 2023, you recovered $2,100 of

your 2022 itemized deductions. None of the re-

coveries were more than the actual deductions

for 2022. Include $250 of the recoveries in your

2023 income. This is the smaller of your recov-

eries ($2,100) or the amount by which your

itemized deductions were more than the stand-

ard deduction ($26,150 − $25,900 = $250).

Recovery limited to deduction. You don’t in-

clude in your income any amount of your recov-

ery that’s more than the amount you deducted

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Publication 17 (2023) Chapter 8 Other Income 71

in the earlier year. The amount you include in

your income is limited to the smaller of:

•

The amount deducted on Schedule A

(Form 1040), or

•

The amount recovered.

Example. During 2022, you paid $1,700 for

medical expenses. Of this amount, you deduc-

ted $200 on your 2022 Schedule A (Form

1040). In 2023, you received a $500 reimburse-

ment from your medical insurance for your 2022

expenses. The only amount of the $500 reim-

bursement that must be included in your income

for 2023 is $200—the amount actually deduc-

ted.

Other recoveries. See Recoveries in Pub.

525 if:

•

You have recoveries of items other than

itemized deductions, or

•

You received a recovery for an item for

which you claimed a tax credit (other than

investment credit or foreign tax credit) in a

prior year.

Rents From Personal

Property

If you rent out personal property, such as equip-

ment or vehicles, how you report your income

and expenses is in most cases determined by:

•

Whether or not the rental activity is a busi-

ness, and

•

Whether or not the rental activity is con-

ducted for profit.

In most cases, if your primary purpose is in-

come or profit and you’re involved in the rental

activity with continuity and regularity, your rental

activity is a business.

Reporting business income and expenses.

If you’re in the business of renting personal

property, report your income and expenses on

Schedule C (Form 1040). The form instructions

have information on how to complete them.

Reporting nonbusiness income. If you

aren’t in the business of renting personal prop-

erty, report your rental income on Schedule 1

(Form 1040), line 8l.

Reporting nonbusiness expenses. If you

rent personal property for profit, include your

rental expenses in the total amount you enter on

Schedule 1 (Form 1040), line 24b, and see the

instructions there.

If you don’t rent personal property for profit,

your deductions are limited and you can’t report

a loss to offset other income. See Activity not

for profit under Other Income, later.

Repayments

If you had to repay an amount that you included

in your income in an earlier year, you may be

able to deduct the amount repaid from your in-

come for the year in which you repaid it. Or, if

the amount you repaid is more than $3,000, you

may be able to take a credit against your tax for

the year in which you repaid it. Generally, you

can claim a deduction or credit only if the

repayment qualifies as an expense or loss in-

curred in your trade or business or in a for-profit

transaction.

Type of deduction. The type of deduction

you’re allowed in the year of repayment de-

pends on the type of income you included in the

earlier year. You generally deduct the repay-

ment on the same form or schedule on which

you previously reported it as income. For exam-

ple, if you reported it as self-employment in-

come, deduct it as a business expense on

Schedule C (Form 1040) or Schedule F (Form

1040). If you reported it as a capital gain, de-

duct it as a capital loss as explained in the In-

structions for Schedule D (Form 1040). If you

reported it as wages, unemployment compen-

sation, or other nonbusiness income, you may

be able to deduct it as an other itemized deduc-

tion if the amount repaid is over $3,000.

Beginning in 2018, you can no longer

claim any miscellaneous itemized de-

ductions, so if the amount repaid was

$3,000 or less, you are not able to deduct it

from your income in the year you repaid it.

Repaid social security benefits. If you repaid

social security benefits or equivalent railroad re-

tirement benefits, see Repayment of benefits. in

chapter 7.

Repayment over $3,000. If the amount you

repaid was more than $3,000, you can deduct

the repayment as an other itemized deduction

on Schedule A (Form 1040), line 16, if you in-

cluded the income under a claim of right. This

means that at the time you included the income,

it appeared that you had an unrestricted right to

it. However, you can choose to take a credit for

the year of repayment. Figure your tax under

both methods and compare the results. Use the

method (deduction or credit) that results in less

tax.

When determining whether the amount

you repaid was more or less than

$3,000, consider the total amount be-

ing repaid on the return. Each instance of re-

payment isn’t considered separately.

Method 1. Figure your tax for 2023 claiming

a deduction for the repaid amount. If you deduct

it as an other itemized deduction, enter it on

Schedule A (Form 1040), line 16.

Method 2. Figure your tax for 2023 claiming

a credit for the repaid amount. Follow these

steps.

1. Figure your tax for 2023 without deducting

the repaid amount.

2. Refigure your tax from the earlier year

without including in income the amount

you repaid in 2023.

3. Subtract the tax in (2) from the tax shown

on your return for the earlier year. This is

the credit.

4. Subtract the answer in (3) from the tax for

2023 figured without the deduction (step

1).

If method 1 results in less tax, deduct the

amount repaid. If method 2 results in less tax,

claim the credit figured in (3) above on Sched-

ule 3 (Form 1040), line 13b, by adding the

CAUTION

amount of the credit to any other credits on this

line, and see the instructions there.

An example of this computation can be

found in Pub. 525.

Repaid wages subject to social security

and Medicare taxes. If you had to repay an

amount that you included in your wages or com-

pensation in an earlier year on which social se-

curity, Medicare, or tier 1 RRTA taxes were paid,

ask your employer to refund the excess amount

to you. If the employer refuses to refund the

taxes, ask for a statement indicating the amount

of the overcollection to support your claim. File

a claim for refund using Form 843, Claim for Re-

fund and Request for Abatement.

Repaid wages subject to Additional Medi-

care Tax. Employers can’t make an adjust-

ment or file a claim for refund for Additional

Medicare Tax withholding when there is a re-

payment of wages received by an employee in a

prior year because the employee determines li-

ability for Additional Medicare Tax on the em-

ployee's income tax return for the prior year. If

you had to repay an amount that you included in

your wages or compensation in an earlier year,

and on which Additional Medicare Tax was

paid, you may be able to recover the Additional

Medicare Tax paid on the amount. To recover

Additional Medicare Tax on the repaid wages or

compensation, you must file Form 1040-X for

the prior year in which the wages or compensa-

tion was originally received. See the Instruc-

tions for Form 1040-X.

Royalties

Royalties from copyrights, patents, and oil, gas,

and mineral properties are taxable as ordinary

income.

In most cases, you report royalties in Part I

of Schedule E (Form 1040). However, if you

hold an operating oil, gas, or mineral interest or

are in business as a self-employed writer, inven-

tor, artist, etc., report your income and expen-

ses on Schedule C (Form 1040).

Copyrights and patents. Royalties from copy-

rights on literary, musical, or artistic works, and

similar property, or from patents on inventions,

are amounts paid to you for the right to use your

work over a specified period of time. Royalties

are generally based on the number of units

sold, such as the number of books, tickets to a

performance, or machines sold.

Oil, gas, and minerals. Royalty income from

oil, gas, and mineral properties is the amount

you receive when natural resources are extrac-

ted from your property. The royalties are based

on units, such as barrels, tons, etc., and are

paid to you by a person or company that leases

the property from you.

Depletion. If you’re the owner of an eco-

nomic interest in mineral deposits or oil and gas

wells, you can recover your investment through

the depletion allowance.

Coal and iron ore. Under certain circum-

stances, you can treat amounts you receive

from the disposal of coal and iron ore as pay-

ments from the sale of a capital asset, rather

than as royalty income. For information about

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72 Chapter 8 Other Income Publication 17 (2023)

gain or loss from the sale of coal and iron ore,

see chapter 2 of Pub. 544.

Sale of property interest. If you sell your

complete interest in oil, gas, or mineral rights,

the amount you receive is considered payment

for the sale of property used in a trade or busi-

ness under section 1231, not royalty income.

Under certain circumstances, the sale is subject

to capital gain or loss treatment as explained in

the Instructions for Schedule D (Form 1040).

For more information on selling section 1231

property, see chapter 3 of Pub. 544.

If you retain a royalty, an overriding royalty,

or a net profit interest in a mineral property for

the life of the property, you have made a lease

or a sublease, and any cash you receive for the

assignment of other interests in the property is

ordinary income subject to a depletion allow-

ance.

Part of future production sold. If you own

mineral property but sell part of the future pro-

duction, in most cases you treat the money you

receive from the buyer at the time of the sale as

a loan from the buyer. Don’t include it in your in-

come or take depletion based on it.

When production begins, you include all the

proceeds in your income, deduct all the produc-

tion expenses, and deduct depletion from that

amount to arrive at your taxable income from

the property.

Unemployment

Benefits

The tax treatment of unemployment benefits

you receive depends on the type of program

paying the benefits.

Unemployment compensation. You must in-

clude in income all unemployment compensa-

tion you receive. You should receive a Form

1099-G showing in box 1 the total unemploy-

ment compensation paid to you. In most cases,

you enter unemployment compensation on

Schedule 1 (Form 1040), line 7.

If you received unemployment com-

pensation but did not receive Form

1099-G through the mail, you may

need to access your information through your

state’s website to get your electronic Form

1099-G.

Types of unemployment compensation.

Unemployment compensation generally in-

cludes any amount received under an unem-

ployment compensation law of the United

States or of a state. It includes the following

benefits.

•

Benefits paid by a state or the District of

Columbia from the Federal Unemployment

Trust Fund.

•

State unemployment insurance benefits.

•

Railroad unemployment compensation

benefits.

•

Disability payments from a government

program paid as a substitute for unemploy-

ment compensation. (Amounts received as

workers' compensation for injuries or ill-

ness aren’t unemployment compensation.

See chapter 5 for more information.)

CAUTION

•

Trade readjustment allowances under the

Trade Act of 1974.

•

Unemployment assistance under the Dis-

aster Relief and Emergency Assistance

Act.

•

Unemployment assistance under the Air-

line Deregulation Act of 1978 Program.

Governmental program. If you contribute

to a governmental unemployment compensa-

tion program and your contributions aren’t de-

ductible, amounts you receive under the pro-

gram aren’t included as unemployment

compensation until you recover your contribu-

tions. If you deducted all of your contributions to

the program, the entire amount you receive un-

der the program is included in your income.

Repayment of unemployment compensa-

tion. If you repaid in 2023 unemployment com-

pensation you received in 2023, subtract the

amount you repaid from the total amount you re-

ceived and enter the difference on Schedule 1

(Form 1040), line 7. On the dotted line next to

your entry, enter “Repaid” and the amount you

repaid. If you repaid unemployment compensa-

tion in 2023 that you included in income in an

earlier year, you can deduct the amount repaid

on Schedule A (Form 1040), line 16, if you item-

ize deductions and the amount is more than

$3,000. See Repayments, earlier.

Tax withholding. You can choose to have

federal income tax withheld from your unem-

ployment compensation. To make this choice,

complete Form W-4V, Voluntary Withholding

Request, and give it to the paying office. Tax will

be withheld at 10% of your payment.

If you don’t choose to have tax withheld

from your unemployment compensa-

tion, you may be liable for estimated

tax. If you don’t pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty. For

more information on estimated tax, see chap-

ter 4.

Supplemental unemployment benefits.

Benefits received from an employer-financed

fund (to which the employees didn’t contribute)

aren’t unemployment compensation. They are

taxable as wages. For more information, see

Supplemental Unemployment Benefits in sec-

tion 5 of Pub. 15-A, Employer's Supplemental

Tax Guide. Report these payments on line 1a of

Form 1040 or 1040-SR.

Repayment of benefits. You may have to

repay some of your supplemental unemploy-

ment benefits to qualify for trade readjustment

allowances under the Trade Act of 1974. If you

repay supplemental unemployment benefits in

the same year you receive them, reduce the to-

tal benefits by the amount you repay. If you re-

pay the benefits in a later year, you must include

the full amount of the benefits received in your

income for the year you received them.

Deduct the repayment in the later year as an

adjustment to gross income on Form 1040 or

1040-SR. Include the repayment on Schedule 1

(Form 1040), line 24e, and see the instructions

there. If the amount you repay in a later year is

more than $3,000, you may be able to take a

CAUTION

credit against your tax for the later year instead

of deducting the amount repaid. For more infor-

mation on this, see Repayments, earlier.

Private unemployment fund. Unemployment

benefit payments from a private (nonunion) fund

to which you voluntarily contribute are taxable

only if the amounts you receive are more than

your total payments into the fund. Report the

taxable amount on Schedule 1 (Form 1040),

line 8z.

Payments by a union. Benefits paid to you as

an unemployed member of a union from regular

union dues are included in your income on

Schedule 1 (Form 1040), line 8z. However, if

you contribute to a special union fund and your

payments to the fund aren’t deductible, the un-

employment benefits you receive from the fund

are includible in your income only to the extent

they’re more than your contributions.

Guaranteed annual wage. Payments you re-

ceive from your employer during periods of un-

employment, under a union agreement that

guarantees you full pay during the year, are tax-

able as wages. Include them on line 1a of Form

1040 or 1040-SR.

State employees. Payments similar to a

state's unemployment compensation may be

made by the state to its employees who aren’t

covered by the state's unemployment compen-

sation law. Although the payments are fully tax-

able, don’t report them as unemployment com-

pensation. Report these payments on Schedule

1 (Form 1040), line 8z.

Welfare and Other

Public Assistance

Benefits

Don’t include in your income governmental ben-

efit payments from a public welfare fund based

upon need, such as payments to blind individu-

als under a state public assistance law. Pay-

ments from a state fund for the victims of crime

shouldn’t be included in the victims' incomes if

they’re in the nature of welfare payments. Don’t

deduct medical expenses that are reimbursed

by such a fund. You must include in your income

any welfare payments that are compensation for

services or that are obtained fraudulently.

Reemployment Trade Adjustment Assis-

tance (RTAA) payments. RTAA payments re-

ceived from a state must be included in your in-

come. The state must send you Form 1099-G to

advise you of the amount you should include in

income. The amount should be reported on

Schedule 1 (Form 1040), line 8z.

Persons with disabilities. If you have a disa-

bility, you must include in income compensation

you receive for services you perform unless the

compensation is otherwise excluded. However,

you don’t include in income the value of goods,

services, and cash that you receive, not in re-

turn for your services, but for your training and

rehabilitation because you have a disability. Ex-

cludable amounts include payments for trans-

portation and attendant care, such as inter-

preter services for the deaf, reader services for

the blind, and services to help individuals with

an intellectual disability do their work.

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Publication 17 (2023) Chapter 8 Other Income 73

Disaster relief grants. Don’t include post-dis-

aster grants received under the Robert T. Staf-

ford Disaster Relief and Emergency Assistance

Act in your income if the grant payments are

made to help you meet necessary expenses or

serious needs for medical, dental, housing, per-

sonal property, transportation, childcare, or fu-

neral expenses. Don’t deduct casualty losses or

medical expenses that are specifically reim-

bursed by these disaster relief grants. If you

have deducted a casualty loss for the loss of

your personal residence and you later receive a

disaster relief grant for the loss of the same resi-

dence, you may have to include part or all of the

grant in your taxable income. See Recoveries,

earlier. Unemployment assistance payments

under the Act are taxable unemployment com-

pensation. See Unemployment compensation

under Unemployment Benefits, earlier.

Disaster relief payments. You can exclude

from income any amount you receive that’s a

qualified disaster relief payment. A qualified dis-

aster relief payment is an amount paid to you:

1. To reimburse or pay reasonable and nec-

essary personal, family, living, or funeral

expenses that result from a qualified dis-

aster;

2. To reimburse or pay reasonable and nec-

essary expenses incurred for the repair or

rehabilitation of your home or repair or re-

placement of its contents to the extent it’s

due to a qualified disaster;

3. By a person engaged in the furnishing or

sale of transportation as a common carrier

because of the death or personal physical

injuries incurred as a result of a qualified

disaster; or

4. By a federal, state, or local government;

agency; or instrumentality in connection

with a qualified disaster in order to pro-

mote the general welfare.

You can exclude this amount only to the extent

any expense it pays for isn’t paid for by insur-

ance or otherwise. The exclusion doesn’t apply

if you were a participant or conspirator in a ter-

rorist action or a representative of one.

A qualified disaster is:

•

A disaster which results from a terrorist or

military action;

•

A federally declared disaster; or

•

A disaster which results from an accident

involving a common carrier, or from any

other event, which is determined to be

catastrophic by the Secretary of the Treas-

ury or his or her delegate.

For amounts paid under item (4) above, a

disaster is qualified if it’s determined by an ap-

plicable federal, state, or local authority to war-

rant assistance from the federal, state, or local

government, agency, or instrumentality.

Disaster mitigation payments. You can ex-

clude from income any amount you receive

that’s a qualified disaster mitigation payment.

Qualified disaster mitigation payments are most

commonly paid to you in the period immediately

following damage to property as a result of a

natural disaster. However, disaster mitigation

payments are used to mitigate (reduce the se-

verity of) potential damage from future natural

disasters. They’re paid to you through state and

local governments based on the provisions of

the Robert T. Stafford Disaster Relief and Emer-

gency Assistance Act or the National Flood In-

surance Act.

You can’t increase the basis or adjusted ba-

sis of your property for improvements made with

nontaxable disaster mitigation payments.

Home Affordable Modification Program

(HAMP). If you benefit from Pay-for-Perform-

ance Success Payments under HAMP, the pay-

ments aren’t taxable.

Mortgage assistance payments under sec-

tion 235 of the National Housing Act. Pay-

ments made under section 235 of the National

Housing Act for mortgage assistance aren’t in-

cluded in the homeowner's income. Interest

paid for the homeowner under the mortgage as-

sistance program can’t be deducted.

Medicare. Medicare benefits received under ti-

tle XVIII of the Social Security Act aren’t includi-

ble in the gross income of the individuals for

whom they’re paid. This includes basic (Part A

(Hospital Insurance Benefits for the Aged)) and

supplementary (Part B (Supplementary Medical

Insurance Benefits for the Aged)).

Social security benefits (including

lump-sum payments attributable to prior

years), Supplemental Security Income (SSI)

benefits, and lump-sum death benefits. The

Social Security Administration (SSA) provides

benefits such as old-age benefits, benefits to

disabled workers, and benefits to spouses and

dependents. These benefits may be subject to

federal income tax depending on your filing sta-

tus and other income. See chapter 7 in this pub-

lication and Pub. 915, Social Security and

Equivalent Railroad Retirement Benefits, for

more information. An individual originally denied

benefits, but later approved, may receive a

lump-sum payment for the period when benefits

were denied (which may be prior years). See

Pub. 915 for information on how to make a

lump-sum election, which may reduce your tax

liability. There are also other types of benefits

paid by the SSA. However, SSI benefits and

lump-sum death benefits (one-time payment to

spouse and children of deceased) aren’t sub-

ject to federal income tax. For more information

on these benefits, go to SSA.gov.

Nutrition Program for the Elderly. Food ben-

efits you receive under the Nutrition Program for

the Elderly aren’t taxable. If you prepare and

serve free meals for the program, include in

your income as wages the cash pay you re-

ceive, even if you’re also eligible for food bene-

fits.

Payments to reduce cost of winter energy.

Payments made by a state to qualified people to

reduce their cost of winter energy use aren’t

taxable.

Other Income

The following brief discussions are arranged in

alphabetical order. Other income items briefly

discussed below are referenced to publications

which provide more topical information.

Activity not for profit. You must include on

your return income from an activity from which

you don’t expect to make a profit. An example of

this type of activity is a hobby or a farm you op-

erate mostly for recreation and pleasure. Enter

this income on Schedule 1 (Form 1040), line 8j.

Deductions for expenses related to the activity

are limited. They can’t total more than the in-

come you report and can be taken only if you

itemize deductions on Schedule A (Form 1040).

Alaska Permanent Fund dividend. If you re-

ceived a payment from Alaska's mineral income

fund (Alaska Permanent Fund dividend), report

it as income on Schedule 1 (Form 1040),

line 8g. The state of Alaska sends each recipi-

ent a document that shows the amount of the

payment with the check. The amount is also re-

ported to the IRS.

Alimony. Include in your income on Schedule

1 (Form 1040), line 2a, any taxable alimony pay-

ments you receive. Amounts you receive for

child support aren’t income to you. Alimony and

child support payments are discussed in Pub.

504.

Don’t include alimony payments you re-

ceive under a divorce or separation

agreement (1) executed after 2018, or

(2) executed before 2019 but later modified if

the modification expressly states the repeal of

the deduction for alimony payments applies to

the modification.

Bribes. If you receive a bribe, include it in your

income.

Campaign contributions. These contributions

aren’t income to a candidate unless they’re di-

verted to her or his personal use. To be nontax-

able, the contributions must be spent for cam-

paign purposes or kept in a fund for use in

future campaigns. However, interest earned on

bank deposits, dividends received on contrib-

uted securities, and net gains realized on sales

of contributed securities are taxable and must

be reported on Form 1120-POL, U.S. Income

Tax Return for Certain Political Organizations.

Excess campaign funds transferred to an office

account must be included in the officeholder's

income on Schedule 1 (Form 1040), line 8z, in

the year transferred.

Carpools. Don’t include in your income

amounts you receive from the passengers for

driving a car in a carpool to and from work.

These amounts are considered reimbursement

for your expenses. However, this rule doesn’t

apply if you have developed carpool arrange-

ments into a profit-making business of trans-

porting workers for hire.

Cash rebates. A cash rebate you receive from

a dealer or manufacturer of an item you buy

isn’t income, but you must reduce your basis by

the amount of the rebate.

Example. You buy a new car for $24,000

cash and receive a $2,000 rebate check from

the manufacturer. The $2,000 isn’t income to

you. Your basis in the car is $22,000. This is the

basis on which you figure gain or loss if you sell

the car and depreciation if you use it for busi-

ness.

Casualty insurance and other reimburse-

ments. You generally shouldn’t report these re-

imbursements on your return unless you’re

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74 Chapter 8 Other Income Publication 17 (2023)

figuring gain or loss from the casualty or theft.

See Pub. 547 for more information.

Child support payments. You shouldn’t re-

port these payments on your return. See Pub.

504 for more information.

Court awards and damages. To determine if

settlement amounts you receive by compromise

or judgment must be included in your income,

you must consider the item that the settlement

replaces. The character of the income as ordi-

nary income or capital gain depends on the na-

ture of the underlying claim. Include the follow-

ing as ordinary income.

1. Interest on any award.

2. Compensation for lost wages or lost profits

in most cases.

3. Punitive damages, in most cases. It

doesn’t matter if they relate to a physical

injury or physical sickness.

4. Amounts received in settlement of pension

rights (if you didn’t contribute to the plan).

5. Damages for:

a. Patent or copyright infringement,

b. Breach of contract, or

c. Interference with business operations.

6. Back pay and damages for emotional dis-

tress received to satisfy a claim under title

VII of the Civil Rights Act of 1964.

7. Attorney fees and costs (including contin-

gent fees) where the underlying recovery

is included in gross income.

8. Attorney fees and costs relating to whistle-

blower awards where the underlying re-

covery is included in gross income.

Don’t include in your income compensatory

damages for personal physical injury or physical

sickness (whether received in a lump sum or in-

stallments).

Emotional distress. Emotional distress it-

self isn’t a physical injury or physical sickness,

but damages you receive for emotional distress

due to a physical injury or sickness are treated

as received for the physical injury or sickness.

Don’t include them in your income.

If the emotional distress is due to a personal

injury that isn’t due to a physical injury or sick-

ness (for example, employment discrimination

or injury to reputation), you must include the

damages in your income, except for any dam-

ages that aren’t more than amounts paid for

medical care due to that emotional distress.

Emotional distress includes physical symptoms

that result from emotional distress, such as

headaches, insomnia, and stomach disorders.

Credit card insurance. In most cases, if you

receive benefits under a credit card disability or

unemployment insurance plan, the benefits are

taxable to you. These plans make the minimum

monthly payment on your credit card account if

you can’t make the payment due to injury, ill-

ness, disability, or unemployment. Report on

Schedule 1 (Form 1040), line 8z, the amount of

benefits you received during the year that’s

more than the amount of the premiums you paid

during the year.

Down payment assistance. If you purchase a

home and receive assistance from a nonprofit

corporation to make the down payment, that as-

sistance isn’t included in your income. If the cor-

poration qualifies as a tax-exempt charitable or-

ganization, the assistance is treated as a gift

and is included in your basis of the house. If the

corporation doesn’t qualify, the assistance is

treated as a rebate or reduction of the purchase

price and isn’t included in your basis.

Employment agency fees. If you get a job

through an employment agency, and the fee is

paid by your employer, the fee isn’t includible in

your income if you aren’t liable for it. However, if

you pay it and your employer reimburses you for

it, it’s includible in your income.

Energy conservation subsidies. You can ex-

clude from gross income any subsidy provided,

either directly or indirectly, by public utilities for

the purchase or installation of an energy con-

servation measure for a dwelling unit.

Energy conservation measure. This in-

cludes installations or modifications that are pri-

marily designed to reduce consumption of elec-

tricity or natural gas, or improve the

management of energy demand.

Dwelling unit. This includes a house,

apartment, condominium, mobile home, boat,

or similar property. If a building or structure con-

tains both dwelling and other units, any subsidy

must be properly allocated.

Estate and trust income. An estate or trust,

unlike a partnership, may have to pay federal in-

come tax. If you’re a beneficiary of an estate or

trust, you may be taxed on your share of its in-

come distributed or required to be distributed to

you. However, there is never a double tax. Es-

tates and trusts file their returns on Form 1041,

U.S. Income Tax Return for Estates and Trusts,

and your share of the income is reported to you

on Schedule K-1 (Form 1041).

Current income required to be distrib-

uted. If you’re the beneficiary of an estate or

trust that must distribute all of its current in-

come, you must report your share of the distrib-

utable net income, whether or not you actually

received it.

Current income not required to be dis-

tributed. If you’re the beneficiary of an estate

or trust and the fiduciary has the choice of

whether to distribute all or part of the current in-

come, you must report:

•

All income that’s required to be distributed

to you, whether or not it’s actually distrib-

uted, plus

•

All other amounts actually paid or credited

to you,

up to the amount of your share of distributable

net income.

How to report. Treat each item of income

the same way that the estate or trust would treat

it. For example, if a trust's dividend income is

distributed to you, you report the distribution as

dividend income on your return. The same rule

applies to distributions of tax-exempt interest

and capital gains.

The fiduciary of the estate or trust must tell

you the type of items making up your share of

the estate or trust income and any credits you’re

allowed on your individual income tax return.

Losses. Losses of estates and trusts gener-

ally aren’t deductible by the beneficiaries.

Grantor trust. Income earned by a grantor

trust is taxable to the grantor, not the benefi-

ciary, if the grantor keeps certain control over

the trust. (The grantor is the one who transfer-

red property to the trust.) This rule applies if the

property (or income from the property) put into

the trust will or may revert (be returned) to the

grantor or the grantor's spouse.

Generally, a trust is a grantor trust if the

grantor has a reversionary interest valued (at

the date of transfer) at more than 5% of the

value of the transferred property.

Expenses paid by another. If your personal

expenses are paid for by another person, such

as a corporation, the payment may be taxable

to you depending upon your relationship with

that person and the nature of the payment. But

if the payment makes up for a loss caused by

that person, and only restores you to the posi-

tion you were in before the loss, the payment

isn’t includible in your income.

Fees for services. Include all fees for your

services in your income. Examples of these

fees are amounts you receive for services you

perform as:

•

A corporate director;

•

An executor, administrator, or personal

representative of an estate;

•

A manager of a trade or business you op-

erated before declaring chapter 11 bank-

ruptcy;

•

A notary public; or

•

An election precinct official.

Nonemployee compensation. If you aren’t

an employee and the fees for your services from

a single payer in the course of the payer's trade

or business total $600 or more for the year, the

payer should send you a Form 1099-NEC. You

may need to report your fees as self-employ-

ment income. See Self-Employed Persons in

chapter 1 for a discussion of when you’re con-

sidered self-employed.

Corporate director. Corporate director fees

are self-employment income. Report these pay-

ments on Schedule C (Form 1040).

Personal representatives. All personal

representatives must include in their gross in-

come fees paid to them from an estate. If you

aren’t in the trade or business of being an exec-

utor (for instance, you’re the executor of a

friend's or relative's estate), report these fees on

Schedule 1 (Form 1040), line 8z. If you’re in the

trade or business of being an executor, report

these fees as self-employment income on

Schedule C (Form 1040). The fee isn’t includi-

ble in income if it’s waived.

Manager of trade or business for bank-

ruptcy estate. Include in your income all pay-

ments received from your bankruptcy estate for

managing or operating a trade or business that

you operated before you filed for bankruptcy.

Report this income on Schedule 1 (Form 1040),

line 8z.

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Publication 17 (2023) Chapter 8 Other Income 75

Notary public. Report payments for these

services on Schedule C (Form 1040). These

payments aren’t subject to self-employment tax.

See the separate Instructions for Schedule SE

(Form 1040) for details.

Election precinct official. You should re-

ceive a Form W-2 showing payments for serv-

ices performed as an election official or election

worker. Report these payments on line 1a of

Form 1040 or 1040-SR.

Foster care providers. Generally, payment

you receive from a state, a political subdivision,

or a qualified foster care placement agency for

caring for a qualified foster individual in your

home is excluded from your income. However,

you must include in your income payment to the

extent it’s received for the care of more than five

qualified foster individuals age 19 years or

older.

A qualified foster individual is a person who:

1. Is living in a foster family home; and

2. Was placed there by:

a. An agency of a state or one of its polit-

ical subdivisions, or

b. A qualified foster care placement

agency.

Difficulty-of-care payments. These are

payments that are designated by the payer as

compensation for providing the additional care

that’s required for physically, mentally, or emo-

tionally handicapped qualified foster individuals.

A state must determine that this compensation

is needed, and the care for which the payments

are made must be provided in the foster care

provider's home in which the qualified foster in-

dividual was placed.

Certain Medicaid waiver payments are trea-

ted as difficulty-of-care payments when re-

ceived by an individual care provider for caring

for an eligible individual living in the provider's

home. See Notice 2014-7, available at

IRS.gov/irb/2014-04_IRB#NOT-2014-7, and re-

lated questions and answers, available at

IRS.gov/Individuals/Certain-Medicaid-Waiver-

Payments-May-Be-Excludable-From-Income,

for more information.

You must include in your income diffi-

culty-of-care payments to the extent they’re re-

ceived for more than:

•

10 qualified foster individuals under age

19, or

•

5 qualified foster individuals age 19 or

older.

Maintaining space in home. If you’re paid

to maintain space in your home for emergency

foster care, you must include the payment in

your income.

Reporting taxable payments. If you re-

ceive payments that you must include in your in-

come and you’re in business as a foster care

provider, report the payments on Schedule C

(Form 1040). See Pub. 587, Business Use of

Your Home, to help you determine the amount

you can deduct for the use of your home.

Found property. If you find and keep property

that doesn’t belong to you that has been lost or

abandoned (treasure trove), it’s taxable to you

at its fair market value in the first year it’s your

undisputed possession.

Free tour. If you received a free tour from a

travel agency for organizing a group of tourists,

you must include its value in your income. Re-

port the fair market value of the tour on Sched-

ule 1 (Form 1040), line 8z, if you aren’t in the

trade or business of organizing tours. You can’t

deduct your expenses in serving as the volun-

tary leader of the group at the group's request. If

you organize tours as a trade or business, re-

port the tour's value on Schedule C (Form

1040).

Gambling winnings. You must include your

gambling winnings in income on Schedule 1

(Form 1040), line 8b. Winnings from fantasy

sports leagues are gambling winnings. If you

itemize your deductions on Schedule A (Form

1040), you can deduct gambling losses you had

during the year, but only up to the amount of

your winnings. If you’re in the trade or business

of gambling, use Schedule C (Form 1040).

Lotteries and raffles. Winnings from lotter-

ies and raffles are gambling winnings. In addi-

tion to cash winnings, you must include in your

income the fair market value of bonds, cars,

houses, and other noncash prizes.

If you win a state lottery prize payable

in installments, see Pub. 525 for more

information.

Form W-2G. You may have received a Form

W-2G, Certain Gambling Winnings, showing the

amount of your gambling winnings and any tax

taken out of them. Include the amount from

box 1 on Schedule 1 (Form 1040), line 8b. In-

clude the amount shown in box 4 on Form 1040

or 1040-SR, line 25c, as federal income tax

withheld.

Reporting winnings and recordkeeping.

For more information on reporting gambling

winnings and recordkeeping, see Gambling

Losses up to the Amount of Gambling Winnings

in chapter 12.

Gifts and inheritances. In most cases, prop-

erty you receive as a gift, bequest, or inheri-

tance isn’t included in your income. However, if

property you receive this way later produces in-

come such as interest, dividends, or rents, that

income is taxable to you. If property is given to a

trust and the income from it is paid, credited, or

distributed to you, that income is also taxable to

you. If the gift, bequest, or inheritance is the in-

come from the property, that income is taxable

to you.

Inherited pension or individual retire-

ment arrangement (IRA). If you inherited a

pension or an IRA, you may have to include part

of the inherited amount in your income. See

Survivors and Beneficiaries in Pub. 575 if you

inherited a pension. See What if You Inherit an

IRA? in Pubs. 590-A and 590-B if you inherited

an IRA.

Hobby losses. Losses from a hobby aren’t de-

ductible from other income. A hobby is an activ-

ity from which you don’t expect to make a profit.

See Activity not for profit, earlier.

TIP

If you collect stamps, coins, or other

items as a hobby for recreation and

pleasure, and you sell any of the items,

your gain is taxable as a capital gain. (See Pub.

550.) However, if you sell items from your col-

lection at a loss, you can’t deduct the loss.

Illegal activities. Income from illegal activities,

such as money from dealing illegal drugs, must

be included in your income on Schedule 1

(Form 1040), line 8z, or on Schedule C (Form

1040) if from your self-employment activity.

Indian fishing rights. If you’re a member of a

qualified Indian tribe that has fishing rights se-

cured by treaty, Executive order, or an Act of

Congress as of March 17, 1988, don’t include in

your income amounts you receive from activities

related to those fishing rights. The income isn’t

subject to income tax, self-employment tax, or

employment taxes.

Interest on frozen deposits. In general, you

exclude from your income the amount of inter-

est earned on a frozen deposit. See Interest in-

come on frozen deposits in chapter 6.

Interest on qualified savings bonds. You

may be able to exclude from income the interest

from qualified U.S. savings bonds you redeem if

you pay qualified higher education expenses in

the same year. For more information on this ex-

clusion, see Education Savings Bond Program

under U.S. Savings Bonds in chapter 6.

Job interview expenses. If a prospective em-

ployer asks you to appear for an interview and

either pays you an allowance or reimburses you

for your transportation and other travel expen-

ses, the amount you receive is generally not

taxable. You include in income only the amount

you receive that’s more than your actual expen-

ses.

Jury duty. Jury duty pay you receive must be

included in your income on Schedule 1 (Form

1040), line 8h. If you gave any of your jury duty

pay to your employer because your employer

continued to pay you while you served jury duty,

include the amount you gave your employer as

an income adjustment on Schedule 1 (Form

1040), line 24a, and see the instructions there.

Kickbacks. You must include kickbacks, side

commissions, push money, or similar payments

you receive in your income on Schedule 1

(Form 1040), line 8z, or on Schedule C (Form

1040) if from your self-employment activity.

Example. You sell cars and help arrange

car insurance for buyers. Insurance brokers pay

back part of their commissions to you for refer-

ring customers to them. You must include the

kickbacks in your income.

Medical savings accounts (Archer MSAs

and Medicare Advantage MSAs). In most ca-

ses, you don’t include in income amounts you

withdraw from your Archer MSA or Medicare

Advantage MSA if you use the money to pay for

qualified medical expenses. Generally, qualified

medical expenses are those you can deduct on

Schedule A (Form 1040). For more information

about qualified medical expenses, see Pub.

502. For more information about Archer MSAs

or Medicare Advantage MSAs, see Pub. 969,

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76 Chapter 8 Other Income Publication 17 (2023)

Health Savings Accounts and Other Tax-Fa-

vored Health Plans.

Prizes and awards. If you win a prize in a

lucky number drawing, television or radio quiz

program, beauty contest, or other event, you

must include it in your income. For example, if

you win a $50 prize in a photography contest,

you must report this income on Schedule 1

(Form 1040), line 8i. If you refuse to accept a

prize, don’t include its value in your income.

Prizes and awards in goods or services

must be included in your income at their fair

market value.

Employee awards or bonuses. Cash

awards or bonuses given to you by your em-

ployer for good work or suggestions must gen-

erally be included in your income as wages.

However, certain noncash employee achieve-

ment awards can be excluded from income.

See Bonuses and awards in chapter 5.

Pulitzer, Nobel, and similar prizes. If you

were awarded a prize in recognition of accom-

plishments in religious, charitable, scientific, ar-

tistic, educational, literary, or civic fields, you

must generally include the value of the prize in

your income. However, you don’t include this

prize in your income if you meet all of the follow-

ing requirements.

•

You were selected without any action on

your part to enter the contest or proceed-

ing.

•

You aren’t required to perform substantial

future services as a condition to receiving

the prize or award.

•

The prize or award is transferred by the

payer directly to a governmental unit or

tax-exempt charitable organization as des-

ignated by you.

See Pub. 525 for more information about the

conditions that apply to the transfer.

Qualified Opportunity Fund (QOF). Effective

December 22, 2017, Code section 1400Z-2

provides a temporary deferral on inclusion in

gross income for capital gains invested in

QOFs, and permanent exclusion of capital

gains from the sale or exchange of an invest-

ment in the QOF if the investment is held for at

least 10 years. See the Instructions for Form

8949 on how to report your election to defer eli-

gible gains invested in a QOF. See the instruc-

tions for Form 8997, Initial and Annual State-

ment of Qualified Opportunity Fund (QOF)

Investments, for reporting information. For addi-

tional information, see Opportunity Zones Fre-

quently Asked Questions at IRS.gov/

Newsroom/Opportunity-Zones-Frequently-

Asked-Questions.

Qualified tuition programs (QTPs). A QTP

(also known as a 529 program) is a program set

up to allow you to either prepay or contribute to

an account established for paying a student's

qualified higher education expenses at an eligi-

ble educational institution. A program can be

established and maintained by a state, an

agency or instrumentality of a state, or an eligi-

ble educational institution.

The part of a distribution representing the

amount paid or contributed to a QTP isn’t inclu-

ded in income. This is a return of the investment

in the program.

In most cases, the beneficiary doesn’t in-

clude in income any earnings distributed from a

QTP if the total distribution is less than or equal

to adjusted qualified higher education expen-

ses. See Pub. 970 for more information.

Railroad retirement annuities. The following

types of payments are treated as pension or an-

nuity income and are taxable under the rules

explained in Pub. 575, Pension and Annuity In-

come.

•

Tier 1 railroad retirement benefits that are

more than the social security equivalent

benefit.

•

Tier 2 benefits.

•

Vested dual benefits.

Rewards. If you receive a reward for providing

information, include it in your income.

Sale of home. You may be able to exclude

from income all or part of any gain from the sale

or exchange of your main home. See Pub. 523.

Sale of personal items. If you sold an item

you owned for personal use, such as a car, re-

frigerator, furniture, stereo, jewelry, or silver-

ware, your gain is taxable as a capital gain. Re-

port it as explained in the Instructions for

Schedule D (Form 1040). You can’t deduct a

loss.

However, if you sold an item you held for in-

vestment, such as gold or silver bullion, coins,

or gems, any gain is taxable as a capital gain

and any loss is deductible as a capital loss.

Example. You sold a painting on an online

auction website for $100. You bought the paint-

ing for $20 at a garage sale years ago. Report

your gain as a capital gain as explained in the

Instructions for Schedule D (Form 1040).

Scholarships and fellowships. A candidate

for a degree can exclude amounts received as a

qualified scholarship or fellowship. A qualified

scholarship or fellowship is any amount you re-

ceive that’s for:

•

Tuition and fees to enroll at or attend an

educational institution; or

•

Fees, books, supplies, and equipment re-

quired for courses at the educational insti-

tution.

Amounts used for room and board don’t qualify

for the exclusion. See Pub. 970 for more infor-

mation on qualified scholarships and fellowship

grants.

Payment for services. In most cases, you

must include in income the part of any scholar-

ship or fellowship that represents payment for

past, present, or future teaching, research, or

other services. This applies even if all candi-

dates for a degree must perform the services to

receive the degree.

For information about the rules that apply to

a tax-free qualified tuition reduction provided to

employees and their families by an educational

institution, see Pub. 970.

Department of Veterans Affairs (VA) pay-

ments. Allowances paid by the VA aren’t inclu-

ded in your income. These allowances aren’t

considered scholarship or fellowship grants.

Prizes. Scholarship prizes won in a contest

aren’t scholarships or fellowships if you don’t

have to use the prizes for educational purposes.

You must include these amounts in your income

on Schedule 1 (Form 1040), line 8i, whether or

not you use the amounts for educational purpo-

ses.

Sharing/gig economy. A sharing economy is

one in which assets are shared between individ-

uals for a fee, usually through the internet. For

example, you rent out your car when you don’t

need it, or you share your wi-fi account for a fee.

A gig economy is one in which a short-term

contract or freelance work is the norm, as op-

posed to a permanent job. For example, you

drive for a ride-sharing service, or work as a fit-

ness trainer, babysitter, or tutor.

Generally, if you have income from sharing

economy transactions, or you did gig work, you

must include all income received whether you

received a Form 1099-K, Payment Card and

Third-Party Network Transactions, or not. See

the Instructions for Schedule C (Form 1040)

and the Instructions for Schedule SE (Form

1040).

State tax payments. Do not include pay-

ments on your tax return made by states under

legislatively provided social benefit programs

for the promotion of the general welfare. To

qualify for the general welfare exclusion, state

payments must be paid from a governmental

fund, be for the promotion of general welfare

(that is, based on the need of the individual or

family receiving such payments), and not repre-

sent compensation for services.

Spillover payments under certain 2022

state tax payment programs. In 2022, some

states implemented programs to provide state

payments to certain individuals residing in their

states. Many of these programs were related to

the various consequences of the COVID-19

pandemic. Some of those 2022 programs provi-

ded for payments to be made in early 2023. For

special tax refunds or payments that were ex-

cluded from federal income in 2022, the same

tax treatment applies to the special tax refund or

payments received in 2023. This means taxpay-

ers who didn’t get a payment under the program

during 2022 may exclude from federal income a

state payment provided under the 2022 pro-

gram even if they actually received the payment

in 2023. See IRS News Release IR-2023-158 at

IRS.gov/Newsroom/IRS-Issues-Guidance-On-

State-Tax-Payments for more information.

Stolen property. If you steal property, you

must report its fair market value in your income

in the year you steal it unless you return it to its

rightful owner in the same year.

Transporting school children. Don’t include

in your income a school board mileage allow-

ance for taking children to and from school if

you aren’t in the business of taking children to

school. You can’t deduct expenses for providing

this transportation.

Union benefits and dues. Amounts deducted

from your pay for union dues, assessments,

contributions, or other payments to a union

can’t be excluded from your income.

Strike and lockout benefits. Benefits paid

to you by a union as strike or lockout benefits,

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Publication 17 (2023) Chapter 8 Other Income 77

including both cash and the fair market value of

other property, are usually included in your in-

come as compensation. You can exclude these

benefits from your income only when the facts

clearly show that the union intended them as

gifts to you.

Utility rebates. If you’re a customer of an elec-

tric utility company and you participate in the

utility's energy conservation program, you may

receive on your monthly electric bill either:

•

A reduction in the purchase price of elec-

tricity furnished to you (rate reduction), or

•

A nonrefundable credit against the pur-

chase price of the electricity.

The amount of the rate reduction or nonrefunda-

ble credit isn’t included in your income.

Individual

Retirement

Arrangements

(IRAs)

What’s New

IRA contribution limit increased. Beginning

in 2023, the IRA contribution limit is increased

to $6,500 ($7,500 for individuals age 50 or

older) from $6,000 ($7,000 for individuals age

50 or older).

Increase in required minimum distribution

age. Individuals who reach age 72 after De-

cember 31, 2022, may delay receiving their re-

quired minimum distributions until April 1 of the

year following the year in which they turn age

73.

Disaster tax relief. The special rules that pro-

vide for tax-favored withdrawals and repay-

ments now apply to disasters that occur on or

after January 26, 2021. See Disaster-Related

Relief in Pub. 590-B for more information.

Distributions to terminally ill individuals.

The exception to the 10% additional tax for

early distributions is expanded to apply to distri-

butions made after December 29, 2022, to an

individual who has been certified by a physician

as having a terminal illness. See Pub. 590-B for

more information.

Certain corrective distributions not subject

to 10% early distribution tax. Beginning with

distributions made on December 29, 2022, and

after, the 10% additional tax on early distribu-

tions will not apply to the income attributed to a

corrective IRA distribution, as long as the cor-

rective distribution is made on or before the due

date (including extensions) of the income tax re-

turn.

Modified adjusted gross income (AGI) limit

for traditional IRA contributions. For 2023, if

you are covered by a retirement plan at work,

your deduction for contributions to a traditional

IRA is reduced (phased out) if your modified

AGI is:

•

More than $116,000 but less than

$136,000 for a married couple filing a joint

return or a qualifying surviving spouse,

•

More than $73,000 but less than $83,000

for a single individual or head of house-

hold, or

•

Less than $10,000 for a married individual

filing a separate return.

If you either live with your spouse or file a joint

return, and your spouse is covered by a retire-

ment plan at work but you aren’t, your deduction

is phased out if your modified AGI is more than

$218,000 but less than $228,000. If your modi-

fied AGI is $228,000 or more, you can’t take a

deduction for contributions to a traditional IRA.

See How Much Can You Deduct, later.

Modified AGI limit for Roth IRA contribu-

tions. For 2023, your Roth IRA contribution

limit is reduced (phased out) in the following sit-

uations.

•

Your filing status is married filing jointly or

qualifying surviving spouse and your modi-

fied AGI is at least $218,000. You can’t

make a Roth IRA contribution if your modi-

fied AGI is $228,000 or more.

•

Your filing status is single, head of house-

hold, or married filing separately and you

didn’t live with your spouse at any time in

2023 and your modified AGI is at least

$138,000. You can’t make a Roth IRA con-

tribution if your modified AGI is $153,000

or more.

•

Your filing status is married filing sepa-

rately, you lived with your spouse at any

time during the year, and your modified

AGI is more than zero. You can’t make a

Roth IRA contribution if your modified AGI

is $10,000 or more.

See Can You Contribute to a Roth IRA, later.

2024 modified AGI limits. You can find infor-

mation about the 2024 contribution and AGI lim-

its in Pub. 590-A.

Reminders

Maximum age for making traditional IRA

contributions repealed. For tax years begin-

ning after 2019, there is no age limit on making

contributions to your traditional IRA. For more

information, see Pub. 590-A.

Contributions to both traditional and Roth

IRAs. For information on your combined contri-

bution limit if you contribute to both traditional

and Roth IRAs, see Roth IRAs and traditional

IRAs, later.

Statement of required minimum distribu-

tion. If a minimum distribution from your IRA is

required, the trustee, custodian, or issuer that

held the IRA at the end of the preceding year

must either report the amount of the required

minimum distribution to you, or offer to figure it

for you. The report or offer must include the

date by which the amount must be distributed.

The report is due January 31 of the year in

which the minimum distribution is required. It

can be provided with the year-end fair market

value statement that you normally get each

year. No report is required for IRAs of owners

who have died.

IRA interest. Although interest earned from

your IRA is generally not taxed in the year

earned, it isn't tax-exempt interest. Tax on your

traditional IRA is generally deferred until you

take a distribution. Don't report this interest on

your tax return as tax-exempt interest.

Net Investment Income Tax (NIIT). For pur-

poses of the NIIT, net investment income

doesn't include distributions from a qualified re-

tirement plan including IRAs (for example,

401(a), 403(a), 403(b), 408, 408A, or 457(b)

plans). However, these distributions are taken

into account when determining the modified

AGI threshold. Distributions from a nonqualified

retirement plan are included in net investment

income. See Form 8960, Net Investment In-

come Tax—Individuals, Estates, and Trusts, and

its instructions for more information.

Form 8606. To designate contributions as non-

deductible, you must file Form 8606.

The term “50 or older” is used several

times in this chapter. It refers to an IRA

owner who is age 50 or older by the

end of the tax year.

Introduction

An IRA is a personal savings plan that gives you

tax advantages for setting aside money for your

retirement.

This chapter discusses the following topics.

•

The rules for a traditional IRA (any IRA that

isn't a Roth or SIMPLE IRA).

•

The Roth IRA, which features nondeducti-

ble contributions and tax-free distributions.

Simplified Employee Pensions (SEPs) and

Savings Incentive Match Plans for Employees

(SIMPLE) plans aren't discussed in this chapter.

For more information on these plans and em-

ployees' SEP IRAs and SIMPLE IRAs that are

part of these plans, see Pub. 560.

For information about contributions, deduc-

tions, withdrawals, transfers, rollovers, and

other transactions, see Pub. 590-A and Pub.

590-B.

Useful Items

You may want to see:

Publication

560 Retirement Plans for Small Business

575 Pension and Annuity Income

590-A Contributions to Individual

Retirement Arrangements (IRAs)

590-B Distributions from Individual

Retirement Arrangements (IRAs)

TIP

560

575

590-A

590-B

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78 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

Form (and Instructions)

5329 Additional Taxes on Qualified Plans

(Including IRAs) and Other

Tax-Favored Accounts

8606 Nondeductible IRAs

8915-F Qualified Disaster Retirement

Plan Distributions and Repayments

For these and other useful items, go to IRS.gov/

Forms.

Traditional IRAs

In this chapter, the original IRA (sometimes

called an ordinary or regular IRA) is referred to

as a “traditional IRA.” A traditional IRA is any

IRA that isn't a Roth IRA or a SIMPLE IRA. Two

advantages of a traditional IRA are:

•

You may be able to deduct some or all of

your contributions to it, depending on your

circumstances; and

•

Generally, amounts in your IRA, including

earnings and gains, aren't taxed until they

are distributed.

Who Can Open a

Traditional IRA?

You can open and make contributions to a tradi-

tional IRA if you (or, if you file a joint return, your

spouse) received taxable compensation during

the year.

For tax years beginning after 2019,

there is no age limit on making contri-

butions to your traditional IRA. For

more information, see Pub. 590-A.

What is compensation? Generally, compen-

sation is what you earn from working. Compen-

sation includes wages, salaries, tips, professio-

nal fees, bonuses, and other amounts you

receive for providing personal services. The IRS

treats as compensation any amount properly

shown in box 1 (Wages, tips, other compensa-

tion) of Form W-2, Wage and Tax Statement,

provided that this amount is reduced by any

amount properly shown in box 11 (Nonqualified

plans).

Scholarship or fellowship payments are gen-

erally compensation for this purpose only if re-

ported in box 1 of your Form W-2. However, for

tax years beginning after 2019, certain non-tui-

tion fellowship and stipend payments not repor-

ted to you on Form W-2 are treated as taxable

compensation for IRA purposes. These

amounts include taxable non-tuition fellowship

and stipend payments made to aid you in the

pursuit of graduate or postdoctoral study and in-

cluded in your gross income under the rules dis-

cussed in chapter 1 of Pub. 970, Tax Benefits

for Education.

Compensation also includes commissions

and taxable alimony and separate maintenance

payments.

Self-employment income. If you are

self-employed (a sole proprietor or a partner),

compensation is the net earnings from your

5329

8606

8915-F

TIP

trade or business (provided your personal serv-

ices are a material income-producing factor) re-

duced by the total of:

•

The deduction for contributions made on

your behalf to retirement plans, and

•

The deductible part of your self-employ-

ment tax.

Compensation includes earnings from

self-employment even if they aren't subject to

self-employment tax because of your religious

beliefs.

Nontaxable combat pay. For IRA purpo-

ses, if you were a member of the U.S. Armed

Forces, your compensation includes any non-

taxable combat pay you receive.

What isn't compensation? Compensation

doesn't include any of the following items.

•

Earnings and profits from property, such as

rental income, interest income, and divi-

dend income.

•

Pension or annuity income.

•

Deferred compensation received (compen-

sation payments postponed from a past

year).

•

Income from a partnership for which you

don't provide services that are a material

income-producing factor.

•

Conservation Reserve Program (CRP)

payments reported on Schedule SE (Form

1040), line 1b.

•

Any amounts (other than combat pay) you

exclude from income, such as foreign

earned income and housing costs.

When and How Can a

Traditional IRA Be

Opened?

You can open a traditional IRA at any time.

However, the time for making contributions for

any year is limited. See When Can Contribu-

tions Be Made, later.

You can open different kinds of IRAs with a

variety of organizations. You can open an IRA at

a bank or other financial institution or with a mu-

tual fund or life insurance company. You can

also open an IRA through your stockbroker. Any

IRA must meet Internal Revenue Code require-

ments.

Kinds of traditional IRAs. Your traditional IRA

can be an individual retirement account or an-

nuity. It can be part of either a SEP or an em-

ployer or employee association trust account.

How Much Can Be

Contributed?

There are limits and other rules that affect the

amount that can be contributed to a traditional

IRA. These limits and other rules are explained

below.

Community property laws. Except as dis-

cussed later under Kay Bailey Hutchison

Spousal IRA limit, each spouse figures their

limit separately, using their own compensation.

This is the rule even in states with community

property laws.

Brokers' commissions. Brokers' commis-

sions paid in connection with your traditional

IRA are subject to the contribution limit.

Trustees' fees. Trustees' administrative fees

aren't subject to the contribution limit.

Qualified reservist repayments. If you are (or

were) a member of a reserve component and

you were ordered or called to active duty after

September 11, 2001, you may be able to con-

tribute (repay) to an IRA amounts equal to any

qualified reservist distributions you received.

You can make these repayment contributions

even if they would cause your total contributions

to the IRA to be more than the general limit on

contributions. To be eligible to make these re-

payment contributions, you must have received

a qualified reservist distribution from an IRA or

from a section 401(k) or 403(b) plan or similar

arrangement.

For more information, see Qualified reservist

repayments under How Much Can Be Contrib-

uted? in chapter 1 of Pub. 590-A.

Contributions on your behalf to a tradi-

tional IRA reduce your limit for contribu-

tions to a Roth IRA. (See Roth IRAs,

later.)

General limit. For 2023, the most that can be

contributed to your traditional IRA is generally

the smaller of the following amounts.

•

$6,500 ($7,500 if you are 50 or older).

•

Your taxable compensation (defined ear-

lier) for the year.

This is the most that can be contributed regard-

less of whether the contributions are to one or

more traditional IRAs or whether all or part of

the contributions are nondeductible. (See Non-

deductible Contributions, later.) Qualified re-

servist repayments don't affect this limit.

Example 1. You are 34 years old and single

and earned $24,000 in 2023. Your IRA contribu-

tions for 2023 are limited to $6,500.

Example 2. You are an unmarried college

student working part time and earned $3,500 in

2023. Your IRA contributions for 2023 are limi-

ted to $3,500, the amount of your compensa-

tion.

Kay Bailey Hutchison Spousal IRA limit. For

2023, if you file a joint return and your taxable

compensation is less than that of your spouse,

the most that can be contributed for the year to

your IRA is the smaller of the following amounts.

1. $6,500 ($7,500 if you are 50 or older).

2. The total compensation includible in the

gross income of both you and your spouse

for the year, reduced by the following two

amounts.

a. Your spouse's IRA contribution for the

year to a traditional IRA.

b. Any contribution for the year to a Roth

IRA on behalf of your spouse.

This means that the total combined contribu-

tions that can be made for the year to your IRA

and your spouse's IRA can be as much as

CAUTION

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 79

$13,000 ($14,000 if only one of you is 50 or

older, or $15,000 if both of you are 50 or older).

When Can Contributions

Be Made?

As soon as you open your traditional IRA, con-

tributions can be made to it through your

chosen sponsor (trustee or other administrator).

Contributions must be in the form of money

(cash, check, or money order). Property can't

be contributed.

Contributions must be made by due date.

Contributions can be made to your traditional

IRA for a year at any time during the year or by

the due date for filing your return for that year,

not including extensions.

Designating year for which contribution is

made. If an amount is contributed to your tradi-

tional IRA between January 1 and April 15, you

should tell the sponsor which year (the current

year or the previous year) the contribution is for.

If you don't tell the sponsor which year it is for,

the sponsor can assume, and report to the IRS,

that the contribution is for the current year (the

year the sponsor received it).

Filing before a contribution is made. You

can file your return claiming a traditional IRA

contribution before the contribution is actually

made. Generally, the contribution must be made

by the due date of your return, not including ex-

tensions.

Contributions not required. You don't have to

contribute to your traditional IRA for every tax

year, even if you can.

How Much Can You

Deduct?

Generally, you can deduct the lesser of:

•

The contributions to your traditional IRA for

the year, or

•

The general limit (or the Kay Bailey Hutchi-

son Spousal IRA limit, if it applies).

However, if you or your spouse was covered by

an employer retirement plan, you may not be

able to deduct this amount. See Limit if Covered

by Employer Plan, later.

You may be able to claim a credit for

contributions to your traditional IRA.

For more information, see chapter 3 of

Pub. 590-A.

Trustees' fees. Trustees' administrative fees

that are billed separately and paid in connection

with your traditional IRA aren't deductible as

IRA contributions. You are also not able to de-

duct these fees as an itemized deduction.

Brokers' commissions. Brokers' commis-

sions are part of your IRA contribution and, as

such, are deductible subject to the limits.

Full deduction. If neither you nor your spouse

was covered for any part of the year by an em-

ployer retirement plan, you can take a deduction

TIP

for total contributions to one or more traditional

IRAs of up to the lesser of:

•

$6,500 ($7,500 if you are 50 or older in

2023), or

•

100% of your compensation.

This limit is reduced by any contributions made

to a 501(c)(18) plan on your behalf.

Kay Bailey Hutchison Spousal IRA. In the

case of a married couple with unequal compen-

sation who file a joint return, the deduction for

contributions to the traditional IRA of the spouse

with less compensation is limited to the lesser

of the following amounts.

1. $6,500 ($7,500 if the spouse with the

lower compensation is 50 or older in

2023).

2. The total compensation includible in the

gross income of both spouses for the year

reduced by the following three amounts.

a. The IRA deduction for the year of the

spouse with the greater compensa-

tion.

b. Any designated nondeductible contri-

bution for the year made on behalf of

the spouse with the greater compen-

sation.

c. Any contributions for the year to a

Roth IRA on behalf of the spouse with

the greater compensation.

This limit is reduced by any contributions to a

501(c)(18) plan on behalf of the spouse with the

lesser compensation.

Note. If you were divorced or legally sepa-

rated (and didn't remarry) before the end of the

year, you can't deduct any contributions to your

spouse's IRA. After a divorce or legal separa-

tion, you can deduct only contributions to your

own IRA. Your deductions are subject to the

rules for single individuals.

Covered by an employer retirement plan. If

you or your spouse was covered by an em-

ployer retirement plan at any time during the

year for which contributions were made, your

deduction may be further limited. This is dis-

cussed later under Limit if Covered by Employer

Plan. Limits on the amount you can deduct don't

affect the amount that can be contributed. See

Nondeductible Contributions, later.

Are You Covered by an Employer

Plan?

The Form W-2 you receive from your employer

has a box used to indicate whether you were

covered for the year. The “Retirement plan” box

should be checked if you were covered.

Reservists and volunteer firefighters should

also see Situations in Which You Aren’t Cov-

ered, later.

If you aren't certain whether you were cov-

ered by your employer's retirement plan, you

should ask your employer.

Federal judges. For purposes of the IRA de-

duction, federal judges are covered by an em-

ployer retirement plan.

For Which Year(s) Are You

Covered?

Special rules apply to determine the tax years

for which you are covered by an employer plan.

These rules differ depending on whether the

plan is a defined contribution plan or a defined

benefit plan.

Tax year. Your tax year is the annual account-

ing period you use to keep records and report

income and expenses on your income tax re-

turn. For almost all people, the tax year is the

calendar year.

Defined contribution plan. Generally, you are

covered by a defined contribution plan for a tax

year if amounts are contributed or allocated to

your account for the plan year that ends with or

within that tax year.

A defined contribution plan is a plan that

provides for a separate account for each person

covered by the plan. Types of defined contribu-

tion plans include profit-sharing plans, stock bo-

nus plans, and money purchase pension plans.

For additional information, see Pub. 590-A.

Defined benefit plan. If you are eligible to par-

ticipate in your employer's defined benefit plan

for the plan year that ends within your tax year,

you are covered by the plan. This rule applies

even if you:

•

Declined to participate in the plan,

•

Didn't make a required contribution, or

•

Didn't perform the minimum service re-

quired to accrue a benefit for the year.

A defined benefit plan is any plan that isn't a

defined contribution plan. In a defined benefit

plan, the level of benefits to be provided to each

participant is spelled out in the plan. The plan

administrator figures the amount needed to pro-

vide those benefits, and those amounts are

contributed to the plan. Defined benefit plans in-

clude pension plans and annuity plans.

No vested interest. If you accrue a benefit for

a plan year, you are covered by that plan even if

you have no vested interest in (legal right to) the

accrual.

Situations in Which You Aren’t

Covered

Unless you are covered under another em-

ployer plan, you aren't covered by an employer

plan if you are in one of the situations described

below.

Social security or railroad retirement. Cov-

erage under social security or railroad retire-

ment isn't coverage under an employer retire-

ment plan.

Benefits from a previous employer's plan. If

you receive retirement benefits from a previous

employer's plan, you aren't covered by that

plan.

Reservists. If the only reason you participate

in a plan is because you are a member of a re-

serve unit of the U.S. Armed Forces, you may

not be covered by the plan. You aren't covered

by the plan if both of the following conditions are

met.

1. The plan you participate in is established

for its employees by:

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80 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

a. The United States,

b. A state or political subdivision of a

state, or

c. An instrumentality of either (a) or (b)

above.

2. You didn't serve more than 90 days on ac-

tive duty during the year (not counting duty

for training).

Volunteer firefighters. If the only reason you

participate in a plan is because you are a volun-

teer firefighter, you may not be covered by the

plan. You aren't covered by the plan if both of

the following conditions are met.

1. The plan you participate in is established

for its employees by:

a. The United States,

b. A state or political subdivision of a

state, or

c. An instrumentality of either (a) or (b)

above.

2. Your accrued retirement benefits at the be-

ginning of the year won't provide more

than $1,800 per year at retirement.

Limit if Covered by Employer Plan

If either you or your spouse was covered by an

employer retirement plan, you may be entitled

to only a partial (reduced) deduction or no de-

duction at all, depending on your income and

your filing status.

Your deduction begins to decrease (phase

out) when your income rises above a certain

amount and is eliminated altogether when it

reaches a higher amount. These amounts vary

depending on your filing status.

To determine if your deduction is subject to

phaseout, you must determine your modified

AGI and your filing status. See Filing status and

Modified AGI, later. Then use Table 9-1 or Ta-

ble 9-2 to determine if the phaseout applies.

Social security recipients. Instead of using

Table 9-1 or Table 9-2, use the worksheets in

Appendix B of Pub. 590-A if, for the year, all of

the following apply.

•

You received social security benefits.

•

You received taxable compensation.

•

Contributions were made to your traditional

IRA.

•

You or your spouse was covered by an em-

ployer retirement plan.

Use those worksheets to figure your IRA deduc-

tion, your nondeductible contribution, and the

taxable portion, if any, of your social security

benefits.

Deduction phaseout. If you are covered by an

employer retirement plan and you didn't receive

any social security retirement benefits, your IRA

deduction may be reduced or eliminated de-

pending on your filing status and modified AGI

as shown in Table 9-1.

If your spouse is covered. If you aren't

covered by an employer retirement plan, but

your spouse is, and you didn't receive any so-

cial security benefits, your IRA deduction may

be reduced or eliminated entirely depending on

your filing status and modified AGI as shown in

Table 9-2.

Filing status. Your filing status depends pri-

marily on your marital status. For this purpose,

you need to know if your filing status is single,

head of household, married filing jointly, qualify-

ing surviving spouse, or married filing sepa-

rately. If you need more information on filing sta-

tus, see chapter 2.

Lived apart from spouse. If you didn't live

with your spouse at any time during the year

and you file a separate return, your filing status,

for this purpose, is single.

Modified AGI. You may be able to use Work-

sheet 9-1 to figure your modified AGI. However,

if you made contributions to your IRA for 2023

and received a distribution from your IRA in

2023, see Pub. 590-A.

Don't assume that your modified AGI is

the same as your compensation. Your

modified AGI may include income in

addition to your compensation (discussed ear-

lier), such as interest, dividends, and income

from IRA distributions.

When filing Form 1040 or 1040-SR, refigure

the AGI amount on line 11 without taking into

account any of the following amounts.

•

IRA deduction.

•

Student loan interest deduction.

CAUTION

Table 9-1.

Effect of Modified AGI

on Deduction if You Are Covered by

Retirement Plan at Work

If you are covered by a retirement plan at work, use this table to determine if your modified AGI

affects the amount of your deduction.

IF your filing status is... AND your modified AGI is... THEN you can take...

Single

Head of household

$73,000 or less a full deduction.

more than $73,000

but less than $83,000

a partial deduction.

$83,000 or more no deduction.

Married filing jointly

Qualifying surviving

spouse

$116,000 or less a full deduction.

more than $116,000

but less than $136,000

a partial deduction.

$136,000 or more no deduction.

Married filing

separately

less than $10,000 a partial deduction.

$10,000 or more no deduction.

Modified AGI (adjusted gross income). See Modified AGI, later.

If you didn't live with your spouse at any time during the year, your filing status is considered Single for this

purpose (therefore, your IRA deduction is determined under the “Single” column).

Table 9-2. Effect of Modified AGI

on Deduction if You Aren’t Covered by

Retirement Plan at Work

If you aren't covered by a retirement plan at work, use this table to determine if your modified AGI

affects the amount of your deduction.

IF your filing status is... AND your modified AGI is... THEN you can take...

Single,

Head of household, or

Qualifying surviving spouse

any amount a full deduction.

Married filing jointly or

separately with a spouse who

isn't covered by a plan at work

any amount a full deduction.

Married filing jointly with a

spouse who is covered by a plan

at work

$218,000 or less a full deduction.

more than $218,000

but less than $228,000

a partial deduction.

$228,000 or more no deduction.

Married filing separately with a

spouse who is covered by a plan

at work

less than $10,000 a partial deduction.

$10,000 or more no deduction.

Modified AGI (adjusted gross income). See Modified AGI, later.

You are entitled to the full deduction if you didn't live with your spouse at any time during the year.

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 81

•

Foreign earned income exclusion.

•

Foreign housing exclusion or deduction.

•

Exclusion of qualified savings bond interest

shown on Form 8815, Exclusion of Interest

From Series EE and I U.S. Savings Bonds

Issued After 1989.

•

Exclusion of employer-provided adoption

benefits shown on Form 8839, Qualified

Adoption Expenses.

This is your modified AGI.

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82 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

Both contributions for 2023 and distribu-

tions in 2023. If all three of the following apply,

any IRA distributions you received in 2023 may

be partly tax free and partly taxable.

•

You received distributions in 2023 from one

or more traditional IRAs.

•

You made contributions to a traditional IRA

for 2023.

•

Some of those contributions may be non-

deductible contributions.

If this is your situation, you must figure the taxa-

ble part of the traditional IRA distribution before

you can figure your modified AGI. To do this,

you can use Worksheet 1-1 in Pub. 590-B.

If at least one of the above doesn't apply, fig-

ure your modified AGI using Worksheet 9-1.

How to figure your reduced IRA deduction.

You can figure your reduced IRA deduction for

Form 1040 or 1040-SR by using the worksheets

in chapter 1 of Pub. 590-A. Also, the Instruc-

tions for Form 1040 include similar worksheets

that you may be able to use instead.

Reporting Deductible

Contributions

When filing Form 1040 or 1040-SR, enter your

IRA deduction on Schedule 1 (Form 1040),

line 20.

Nondeductible

Contributions

Although your deduction for IRA contributions

may be reduced or eliminated, contributions

can be made to your IRA up to the general limit

or, if it applies, the Kay Bailey Hutchison

Spousal IRA limit. The difference between your

total permitted contributions and your IRA de-

duction, if any, is your nondeductible contribu-

tion.

Example. You are 30 years old and single.

In 2023, you were covered by a retirement plan

at work. Your salary was $67,000. Your modified

AGI was $85,000. You made a $6,500 IRA con-

tribution for 2023. Because you were covered

by a retirement plan and your modified AGI was

over $83,000, you can't deduct the $6,500 IRA

contribution. You must designate this contribu-

tion as a nondeductible contribution by report-

ing it on Form 8606, as explained next.

Form 8606. To designate contributions as non-

deductible, you must file Form 8606.

You don't have to designate a contribution

as nondeductible until you file your tax return.

When you file, you can even designate other-

wise deductible contributions as nondeductible.

You must file Form 8606 to report nondeduc-

tible contributions even if you don't have to file a

tax return for the year.

A Form 8606 isn't used for the year that

you make a rollover from a qualified re-

tirement plan to a traditional IRA and

the rollover includes nontaxable amounts. In

those situations, a Form 8606 is completed for

the year you take a distribution from that IRA.

See Form 8606 under Distributions Fully or

Partly Taxable, later.

Failure to report nondeductible contribu-

tions. If you don't report nondeductible contri-

butions, all of the contributions to your tradi-

tional IRA will be treated as deductible

contributions when withdrawn. All distributions

from your IRA will be taxed unless you can

show, with satisfactory evidence, that nonde-

ductible contributions were made.

Penalty for overstatement. If you overstate

the amount of nondeductible contributions on

your Form 8606 for any tax year, you must pay a

penalty of $100 for each overstatement, unless

it was due to reasonable cause.

Penalty for failure to file Form 8606. You

will have to pay a $50 penalty if you don't file a

required Form 8606, unless you can prove that

the failure was due to reasonable cause.

Tax on earnings on nondeductible contribu-

tions. As long as contributions are within the

contribution limits, none of the earnings or gains

on contributions (deductible or nondeductible)

will be taxed until they are distributed. See

When Can You Withdraw or Use IRA Assets,

later.

Cost basis. You will have a cost basis in your

traditional IRA if you made any nondeductible

contributions. Your cost basis is the sum of the

nondeductible contributions to your IRA minus

any withdrawals or distributions of nondeducti-

ble contributions.

CAUTION

Inherited IRAs

If you inherit a traditional IRA, you are called a

beneficiary. A beneficiary can be any person or

entity the owner chooses to receive the benefits

of the IRA after the owner dies. Beneficiaries of

a traditional IRA must include in their gross in-

come any taxable distributions they receive.

Inherited from spouse. If you inherit a tradi-

tional IRA from your spouse, you generally have

the following three choices.

1. Treat it as your own IRA by designating

yourself as the account owner.

2. Treat it as your own by rolling it over into

your IRA, or to the extent it is taxable, into

a. Qualified employer plan,

b. Qualified employee annuity plan (sec-

tion 403(a) plan),

c. Tax-sheltered annuity plan (section

403(b) plan), or

d. Deferred compensation plan of a state

or local government (section 457

plan).

3. Treat yourself as the beneficiary rather

than treating the IRA as your own.

Treating it as your own. You will be consid-

ered to have chosen to treat the IRA as your

own if:

•

Contributions (including rollover contribu-

tions) are made to the inherited IRA, or

•

You don't take the required minimum distri-

bution for a year as a beneficiary of the

IRA.

You will only be considered to have chosen to

treat the IRA as your own if:

•

You are the sole beneficiary of the IRA, and

•

You have an unlimited right to withdraw

amounts from it.

However, if you receive a distribution from

your deceased spouse's IRA, you can roll that

distribution over into your own IRA within the

60-day time limit, as long as the distribution isn't

a required distribution, even if you aren't the

sole beneficiary of your deceased spouse's

IRA.

Inherited from someone other than spouse.

If you inherit a traditional IRA from anyone other

than your deceased spouse, you can't treat the

Worksheet 9-1. Figuring Your Modified AGI

Keep for Your Records

Use this worksheet to figure your modified AGI for traditional IRA purposes.

1. Enter your AGI from Form 1040 or 1040-SR, line 11, figured without taking into account the amount from

Schedule 1 (Form 1040), line 20 ....................................................... 1.

2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 ....................

3. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 .................

4. Enter any foreign housing deduction from Form 2555, line 50 ..................................

5. Enter any excludable savings bond interest from Form 8815, line 14 .............................

6. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 ..................

7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes ......................

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 83

inherited IRA as your own. This means that you

can't make any contributions to the IRA. It also

means you can't roll over any amounts into or

out of the inherited IRA. However, you can make

a trustee-to-trustee transfer as long as the IRA

into which amounts are being moved is set up

and maintained in the name of the deceased

IRA owner for the benefit of you as beneficiary.

For more information, see Inherited IRAs un-

der Rollover From One IRA Into Another, later.

Can You Move Retirement

Plan Assets?

You can transfer, tax free, assets (money or

property) from other retirement plans (including

traditional IRAs) to a traditional IRA. You can

make the following kinds of transfers.

•

Transfers from one trustee to another.

•

Rollovers.

•

Transfers incident to a divorce.

Transfers to Roth IRAs. Under certain condi-

tions, you can move assets from a traditional

IRA or from a designated Roth account to a

Roth IRA. You can also move assets from a

qualified retirement plan to a Roth IRA. See Can

You Move Amounts Into a Roth IRA? under

Roth IRAs, later.

Trustee-to-Trustee Transfer

A transfer of funds in your traditional IRA from

one trustee directly to another, either at your re-

quest or at the trustee's request, isn't a rollover.

This includes the situation where the current

trustee issues a check to the new trustee, but

gives it to you to deposit. Because there is no

distribution to you, the transfer is tax free. Be-

cause it isn't a rollover, it isn't affected by the

1-year waiting period required between roll-

overs, discussed later under Rollover From One

IRA Into Another. For information about direct

transfers to IRAs from retirement plans other

than IRAs, see Can You Move Retirement Plan

Assets? in chapter 1 and Can You Move

Amounts Into a Roth IRA? in chapter 2 of Pub.

590-A.

Rollovers

Generally, a rollover is a tax-free distribution to

you of cash or other assets from one retirement

plan that you contribute (roll over) to another re-

tirement plan. The contribution to the second

retirement plan is called a rollover contribution.

Note. An amount rolled over tax free from

one retirement plan to another is generally in-

cludible in income when it is distributed from the

second plan.

Kinds of rollovers to a traditional IRA. You

can roll over amounts from the following plans

into a traditional IRA.

•

A traditional IRA.

•

An employer's qualified retirement plan for

its employees.

•

A deferred compensation plan of a state or

local government (section 457 plan).

•

A tax-sheltered annuity plan (section

403(b) plan).

Treatment of rollovers. You can't deduct a

rollover contribution, but you must report the

rollover distribution on your tax return as dis-

cussed later under Reporting rollovers from

IRAs and Reporting rollovers from employer

plans.

Rollover notice. A written explanation of

rollover treatment must be given to you by the

plan (other than an IRA) making the distribution.

See Written explanation to recipients in Pub.

590-A.

Kinds of rollovers from a traditional IRA.

You may be able to roll over, tax free, a distribu-

tion from your traditional IRA into a qualified

plan. These plans include the federal Thrift Sav-

ings Plan (for federal employees), deferred

compensation plans of state or local govern-

ments (section 457 plans), and tax-sheltered

annuity plans (section 403(b) plans). The part of

the distribution that you can roll over is the part

that would otherwise be taxable (includible in

your income). Qualified plans may, but aren't re-

quired to, accept such rollovers.

Time limit for making a rollover contribu-

tion. You must generally make the rollover con-

tribution by the 60th day after the day you re-

ceive the distribution from your traditional IRA or

your employer's plan.

The IRS may waive the 60-day requirement

where the failure to do so would be against

equity or good conscience, such as in the event

of a casualty, disaster, or other event beyond

your reasonable control. For more information,

see Can You Move Retirement Plan Assets? in

chapter 1 of Pub. 590-A.

Extension of rollover period. If an amount

distributed to you from a traditional IRA or a

qualified employer retirement plan is a frozen

deposit at any time during the 60-day period al-

lowed for a rollover, special rules extend the roll-

over period. For more information, see Can You

Move Retirement Plan Assets? in chapter 1 of

Pub. 590-A.

Rollover From One IRA Into

Another

You can withdraw, tax free, all or part of the as-

sets from one traditional IRA if you reinvest

them within 60 days in the same or another tra-

ditional IRA. Because this is a rollover, you can't

deduct the amount that you reinvest in an IRA.

Waiting period between rollovers. Generally,

if you make a tax-free rollover of any part of a

distribution from a traditional IRA, you can't,

within a 1-year period, make a tax-free rollover

of any later distribution from that same IRA. You

also can't make a tax-free rollover of any

amount distributed, within the same 1-year pe-

riod, from the IRA into which you made the

tax-free rollover.

The 1-year period begins on the date you re-

ceive the IRA distribution, not on the date you

roll it over into an IRA. Rules apply to the num-

ber of rollovers you can have with your tradi-

tional IRAs. See Application of one-rollover limi-

tation next.

Application of one-rollover limitation. You

can make only one rollover from an IRA to an-

other (or the same) IRA in any 1-year period, re-

gardless of the number of IRAs you own. The

limit applies by aggregating all of an individual's

IRAs, including SEP and SIMPLE IRAs, as well

as traditional and Roth IRAs, effectively treating

them as one IRA for purposes of the limit. How-

ever, trustee-to-trustee transfers between IRAs

aren't limited and rollovers from traditional IRAs

to Roth IRAs (conversions) aren't limited.

Example. You have three traditional IRAs:

IRA-1, IRA-2, and IRA-3. You didn't take any

distributions from your IRAs in 2023. On Janu-

ary 1, 2024, you took a distribution from IRA-1

and rolled it over into IRA-2 on the same day.

For 2024, you can't roll over any other 2023 IRA

distribution, including a rollover distribution in-

volving IRA-3. This wouldn’t apply to a

trustee-to-trustee transfer or a Roth IRA conver-

sion.

Partial rollovers. If you withdraw assets from a

traditional IRA, you can roll over part of the with-

drawal tax free and keep the rest of it. The

amount you keep will generally be taxable (ex-

cept for the part that is a return of nondeductible

contributions). The amount you keep may be

subject to the 10% additional tax on early distri-

butions, discussed later under What Acts Result

in Penalties or Additional Taxes.

Required distributions. Amounts that must

be distributed during a particular year under the

required minimum distribution rules (discussed

later) aren't eligible for rollover treatment.

Inherited IRAs. If you inherit a traditional IRA

from your spouse, you can generally roll it over,

or you can choose to make the inherited IRA

your own. See Treating it as your own, earlier.

Not inherited from spouse. If you inherit a

traditional IRA from someone other than your

spouse, you can't roll it over or allow it to receive

a rollover contribution. You must withdraw the

IRA assets within a certain period. For more in-

formation, see When Must You Withdraw As-

sets? (Required Minimum Distributions) in

chapter 1 of Pub. 590-B.

Reporting rollovers from IRAs. Report any

rollover from one traditional IRA to the same or

another traditional IRA on Form 1040 or

1040-SR as follows.

Enter the total amount of the distribution on

Form 1040 or 1040-SR, line 4a. If the total

amount on Form 1040 or 1040-SR, line 4a, was

rolled over, enter zero on Form 1040 or

1040-SR, line 4b. If the total distribution wasn't

rolled over, enter the taxable portion of the part

that wasn't rolled over on Form 1040 or

1040-SR, line 4b. Enter “Rollover” next to Form

1040 or 1040-SR, line 4b. For more information,

see the Instructions for Form 1040.

If you rolled over the distribution into a quali-

fied plan (other than an IRA) or you make the

rollover in 2024, attach a statement explaining

what you did.

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84 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

Rollover From Employer's Plan

Into an IRA

You can roll over into a traditional IRA all or part

of an eligible rollover distribution you receive

from your (or your deceased spouse's):

•

Employer's qualified pension, profit-shar-

ing, or stock bonus plan;

•

Annuity plan;

•

Tax-sheltered annuity plan (section 403(b)

plan); or

•

Governmental deferred compensation plan

(section 457 plan).

A qualified plan is one that meets the re-

quirements of the Internal Revenue Code.

Eligible rollover distribution. Generally, an

eligible rollover distribution is any distribution of

all or part of the balance to your credit in a quali-

fied retirement plan except the following.

1. A required minimum distribution (ex-

plained later under When Must You With-

draw IRA Assets? (Required Minimum

Distributions)).

2. A hardship distribution.

3. Any of a series of substantially equal peri-

odic distributions paid at least once a year

over:

a. Your lifetime or life expectancy,

b. The lifetimes or life expectancies of

you and your beneficiary, or

c. A period of 10 years or more.

4. Corrective distributions of excess contribu-

tions or excess deferrals, and any income

allocable to the excess, or of excess an-

nual additions and any allocable gains.

5. A loan treated as a distribution because it

doesn't satisfy certain requirements either

when made or later (such as upon de-

fault), unless the participant's accrued

benefits are reduced (offset) to repay the

loan. For more information, see Plan loan

offsets under Time Limit for Making a Roll-

over Contribution in Pub. 590-A.

6. Dividends on employer securities.

7. The cost of life insurance coverage.

Your rollover into a traditional IRA may in-

clude both amounts that would be taxable and

amounts that wouldn’t be taxable if they were

distributed to you but not rolled over. To the ex-

tent the distribution is rolled over into a tradi-

tional IRA, it isn’t includible in your income.

Any nontaxable amounts that you roll

over into your traditional IRA become

part of your basis (cost) in your IRAs.

To recover your basis when you take distribu-

tions from your IRA, you must complete Form

8606 for the year of the distribution. See Form

8606 under Distributions Fully or Partly Taxable,

later.

Rollover by nonspouse beneficiary. A direct

transfer from a deceased employee's qualified

pension, profit-sharing, or stock bonus plan; an-

nuity plan; tax-sheltered annuity (section

403(b)) plan; or governmental deferred com-

pensation (section 457) plan to an IRA set up to

TIP

receive the distribution on your behalf can be

treated as an eligible rollover distribution if you

are the designated beneficiary of the plan and

not the employee's spouse. The IRA is treated

as an inherited IRA. For more information about

inherited IRAs, see Inherited IRAs, earlier.

Reporting rollovers from employer plans.

Enter the total distribution (before income tax or

other deductions were withheld) on Form 1040

or 1040-SR, line 4a. This amount should be

shown in box 1 of Form 1099-R, Distributions

From Pensions, Annuities, Retirement or

Profit-Sharing Plans, IRAs, Insurance Con-

tracts, etc. From this amount, subtract any con-

tributions (usually shown in box 5 of Form

1099-R) that were taxable to you when made.

From that result, subtract the amount that was

rolled over either directly or within 60 days of re-

ceiving the distribution. Enter the remaining

amount, even if zero, on Form 1040 or

1040-SR, line 4b. Also, enter "Rollover" next to

Form 1040 or 1040-SR, line 4b.

Transfers Incident to Divorce

If an interest in a traditional IRA is transferred

from your spouse or former spouse to you by a

divorce or separate maintenance decree or a

written document related to such a decree, the

interest in the IRA, starting from the date of the

transfer, is treated as your IRA. The transfer is

tax free. For detailed information, see Distribu-

tions under divorce or similar proceedings (al-

ternate payees) under Rollover From Employ-

er's Plan Into an IRA in Pub. 590-A.

Converting From Any Traditional

IRA to a Roth IRA

Allowable conversions. You can withdraw all

or part of the assets from a traditional IRA and

reinvest them (within 60 days) in a Roth IRA.

The amount that you withdraw and timely con-

tribute (convert) to the Roth IRA is called a con-

version contribution. If properly (and timely) rol-

led over, the 10% additional tax on early

distributions won't apply. However, a part or all

of the conversion contribution from your tradi-

tional IRA is included in your gross income.

Required distributions. You can't convert

amounts that must be distributed from your tra-

ditional IRA for a particular year (including the

calendar year in which you reach age 72 under

the required minimum distribution rules (dis-

cussed later)).

Income. You must include in your gross in-

come distributions from a traditional IRA that

you would have had to include in income if you

hadn't converted them into a Roth IRA. These

amounts are normally included in income on

your return for the year that you converted them

from a traditional IRA to a Roth IRA.

You don't include in gross income any part of

a distribution from a traditional IRA that is a re-

turn of your basis, as discussed later.

You must file Form 8606 to report 2023 con-

versions from traditional, SEP, or SIMPLE IRAs

to a Roth IRA in 2023 (unless you recharacter-

ized the entire amount) and to figure the amount

to include in income.

If you must include any amount in your gross

income, you may have to increase your with-

holding or make estimated tax payments. See

chapter 4.

Recharacterizations

You may be able to treat a contribution made to

one type of IRA as having been made to a dif-

ferent type of IRA. This is called recharacteriz-

ing the contribution. See Can You Move Retire-

ment Plan Assets? in chapter 1 of Pub. 590-A

for more detailed information.

How to recharacterize a contribution. To re-

characterize a contribution, you must generally

have the contribution transferred from the first

IRA (the one to which it was made) to the sec-

ond IRA in a trustee-to-trustee transfer. If the

transfer is made by the due date (including ex-

tensions) for your tax return for the year during

which the contribution was made, you can elect

to treat the contribution as having been origi-

nally made to the second IRA instead of to the

first IRA. If you recharacterize your contribution,

you must do all three of the following.

•

Include in the transfer any net income allo-

cable to the contribution. If there was a

loss, the net income you must transfer may

be a negative amount.

•

Report the recharacterization on your tax

return for the year during which the contri-

bution was made.

•

Treat the contribution as having been

made to the second IRA on the date that it

was actually made to the first IRA.

No recharacterizations of conversions

made in 2018 or later. A conversion of a tradi-

tional IRA to a Roth IRA, and a rollover from any

other eligible retirement plan to a Roth IRA,

made in tax years beginning after tax year

2017, can’t be recharacterized as having been

made to a traditional IRA. If you made a conver-

sion in the 2017 tax year, you had until the due

date (including extensions) for filing the return

for that tax year to recharacterize it.

No deduction allowed. You can't deduct the

contribution to the first IRA. Any net income you

transfer with the recharacterized contribution is

treated as earned in the second IRA.

How do you recharacterize a contribution?

To recharacterize a contribution, you must notify

both the trustee of the first IRA (the one to

which the contribution was actually made) and

the trustee of the second IRA (the one to which

the contribution is being moved) that you have

elected to treat the contribution as having been

made to the second IRA rather than the first.

You must make the notifications by the date of

the transfer. Only one notification is required if

both IRAs are maintained by the same trustee.

The notification(s) must include all of the follow-

ing information.

•

The type and amount of the contribution to

the first IRA that is to be recharacterized.

•

The date on which the contribution was

made to the first IRA and the year for which

it was made.

•

A direction to the trustee of the first IRA to

transfer in a trustee-to-trustee transfer the

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 85

amount of the contribution and any net in-

come (or loss) allocable to the contribution

to the trustee of the second IRA.

•

The name of the trustee of the first IRA and

the name of the trustee of the second IRA.

•

Any additional information needed to make

the transfer.

Reporting a recharacterization. If you elect

to recharacterize a contribution to one IRA as a

contribution to another IRA, you must report the

recharacterization on your tax return as directed

by Form 8606 and its instructions. You must

treat the contribution as having been made to

the second IRA.

When Can You Withdraw

or Use IRA Assets?

There are rules limiting use of your IRA assets

and distributions from it. Violation of the rules

generally results in additional taxes in the year

of violation. See What Acts Result in Penalties

or Additional Taxes, later.

Contributions returned before the due date

of return. If you made IRA contributions in

2023, you can withdraw them tax free by the

due date of your return. If you have an extension

of time to file your return, you can withdraw

them tax free by the extended due date. You

can do this if, for each contribution you with-

draw, both of the following conditions apply.

•

You didn't take a deduction for the contri-

bution.

•

You withdraw any interest or other income

earned on the contribution. You can take

into account any loss on the contribution

while it was in the IRA when figuring the

amount that must be withdrawn. If there

was a loss, the net income earned on the

contribution may be a negative amount.

Note. To figure the amount you must with-

draw, see Worksheet 1-4 under When Can You

Withdraw or Use Assets? in chapter 1 of Pub.

590-A.

Earnings includible in income. You must

include in income any earnings on the contribu-

tions you withdraw. Include the earnings in in-

come for the year in which you made the contri-

butions, not in the year in which you withdraw

them.

Generally, except for any part of a with-

drawal that is a return of nondeductible

contributions (basis), any withdrawal of

your contributions after the due date (or exten-

ded due date) of your return will be treated as a

taxable distribution. Excess contributions can

also be recovered tax free as discussed under

What Acts Result in Penalties or Additional

Taxes, later.

Early distributions tax. The 10% additional

tax on distributions made before you reach age

/2 doesn't apply to these tax-free withdraw-

als of your contributions. However, the distribu-

tion of interest or other income must be repor-

ted on Form 5329 and, unless the distribution

qualifies as an exception to the age 59

/2 rule, it

will be subject to this tax. See Early Distribu-

CAUTION

tions under What Acts Result in Penalties or Ad-

ditional Taxes? in Pub. 590-B.

When Must You Withdraw

IRA Assets? (Required

Minimum Distributions)

You can't keep funds in a traditional IRA indefi-

nitely. Eventually, they must be distributed. If

there are no distributions, or if the distributions

aren't large enough, you may have to pay a 25%

excise tax on the amount not distributed as re-

quired. See

Excess Accumulations (Insufficient

Distributions), later. The requirements for dis-

tributing IRA funds differ depending on whether

you are the IRA owner or the beneficiary of a

decedent's IRA.

Required minimum distribution. The amount

that must be distributed each year is referred to

as the “required minimum distribution.”

Distributions not eligible for rollover.

Amounts that must be distributed (required min-

imum distributions) during a particular year

aren't eligible for rollover treatment.

IRA owners. If you are the owner of a tradi-

tional IRA, you must generally start receiving

distributions from your IRA by April 1 of the year

following the year in which you reach age 72.

April 1 of the year following the year in which

you reach age 72 is referred to as the “required

beginning date.”

Distributions by the required beginning

date. You must receive at least a minimum

amount for each year starting with the year you

reach age 72. If you don't (or didn't) receive that

minimum amount in the year you become age

72, then you must receive distributions for the

year you become age 72 by April 1 of the next

year.

If an IRA owner dies after reaching age 72

but before April 1 of the next year, no minimum

distribution is required because death occurred

before the required beginning date.

Individuals who reach age 72 after De-

cember 31, 2022, may delay receiving

their required minimum distributions

until April 1 of the year following the year in

which they reach age 73.

Even if you begin receiving distribu-

tions before you attain age 72, you

must begin figuring and receiving re-

quired minimum distributions by your required

beginning date.

Distributions after the required beginning

date. The required minimum distribution for

any year after the year you turn age 72 must be

made by December 31 of that later year.

Beneficiaries. If you are the beneficiary of a

decedent's traditional IRA, the requirements for

distributions from that IRA generally depend on

whether the IRA owner died before or after the

required beginning date for distributions.

More information. For more information, in-

cluding how to figure your required minimum

distribution each year and how to figure your re-

quired distribution if you are a beneficiary of a

TIP

CAUTION

decedent's IRA, see When Must You Withdraw

Assets? (Required Minimum Distributions) in

chapter 1 of Pub. 590-B.

Are Distributions Taxable?

In general, distributions from a traditional IRA

are taxable in the year you receive them.

Exceptions. Exceptions to distributions from

traditional IRAs being taxable in the year you re-

ceive them are:

•

Rollovers;

•

Qualified charitable distributions (QCDs),

discussed later;

•

Tax-free withdrawals of contributions, dis-

cussed earlier; and

•

The return of nondeductible contributions,

discussed later under Distributions Fully or

Partly Taxable.

Although a conversion of a traditional

IRA is considered a rollover for Roth

IRA purposes, it isn't an exception to

the rule that distributions from a traditional IRA

are taxable in the year you receive them. Con-

version distributions are includible in your gross

income subject to this rule and the special rules

for conversions explained in Converting From

Any Traditional IRA Into a Roth IRA under Can

You Move Retirement Plan Assets? in chapter 1

of Pub. 590-A.

Qualified charitable distributions (QCDs). A

QCD is generally a nontaxable distribution

made directly by the trustee of your IRA to an

organization eligible to receive tax deductible

contributions. See Qualified Charitable Distribu-

tions in Pub. 590-B for more information.

A QCD will count towards your required

minimum distribution. See Qualified

charitable distributions under Are Dis-

tributions Taxable? in chapter 1 of Pub. 590-B

for more information.

Ordinary income. Distributions from tradi-

tional IRAs that you include in income are taxed

as ordinary income.

No special treatment. In figuring your tax, you

can't use the 10-year tax option or capital gain

treatment that applies to lump-sum distributions

from qualified retirement plans.

Distributions Fully or Partly

Taxable

Distributions from your traditional IRA may be

fully or partly taxable, depending on whether

your IRA includes any nondeductible contribu-

tions.

Fully taxable. If only deductible contributions

were made to your traditional IRA (or IRAs, if

you have more than one), you have no basis in

your IRA. Because you have no basis in your

IRA, any distributions are fully taxable when re-

ceived. See Reporting taxable distributions on

your return, later.

Partly taxable. If you made nondeductible

contributions or rolled over any after-tax

amounts to any of your traditional IRAs, you

have a cost basis (investment in the contract)

CAUTION

TIP

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86 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

equal to the amount of those contributions.

These nondeductible contributions aren't taxed

when they are distributed to you. They are a re-

turn of your investment in your IRA.

Only the part of the distribution that repre-

sents nondeductible contributions and rolled

over after-tax amounts (your cost basis) is tax

free. If nondeductible contributions have been

made or after-tax amounts have been rolled

over to your IRA, distributions consist partly of

nondeductible contributions (basis) and partly

of deductible contributions, earnings, and gains

(if there are any). Until all of your basis has

been distributed, each distribution is partly non-

taxable and partly taxable.

Form 8606. You must complete Form 8606

and attach it to your return if you receive a distri-

bution from a traditional IRA and have ever

made nondeductible contributions or rolled over

after-tax amounts to any of your traditional

IRAs. Using the form, you will figure the nontax-

able distributions for 2023 and your total IRA

basis for 2023 and earlier years.

Note. If you are required to file Form 8606

but you aren't required to file an income tax re-

turn, you must still file Form 8606. Send it to the

IRS at the time and place you would otherwise

file an income tax return.

Distributions reported on Form 1099-R. If

you receive a distribution from your traditional

IRA, you will receive Form 1099-R, or a similar

statement. IRA distributions are shown in boxes

1 and 2a of Form 1099-R. The number or letter

codes in box 7 tell you what type of distribution

you received from your IRA.

Withholding. Federal income tax is withheld

from distributions from traditional IRAs unless

you choose not to have tax withheld. See chap-

ter 4.

IRA distributions delivered outside the

United States. In general, if you are a U.S. citi-

zen or resident alien and your home address is

outside the United States or its territories, you

can't choose exemption from withholding on

distributions from your traditional IRA.

Reporting taxable distributions on your re-

turn. Report fully taxable distributions, includ-

ing early distributions, on Form 1040 or

1040-SR, line 4b (no entry is required on Form

1040 or 1040-SR, line 4a). If only part of the dis-

tribution is taxable, enter the total amount on

Form 1040 or 1040-SR, line 4a, and the taxable

part on Form 1040 or 1040-SR, line 4b.

What Acts Result in

Penalties or Additional

Taxes?

The tax advantages of using traditional IRAs for

retirement savings can be offset by additional

taxes and penalties if you don't follow the rules.

There are additions to the regular tax for us-

ing your IRA funds in prohibited transactions.

There are also additional taxes for the following

activities.

•

Investing in collectibles.

•

Having unrelated business income; see

Pub. 590-B.

•

Making excess contributions.

•

Taking early distributions.

•

Allowing excess amounts to accumulate

(failing to take required distributions).

There are penalties for overstating the

amount of nondeductible contributions and for

failure to file a Form 8606, if required.

Prohibited Transactions

Generally, a prohibited transaction is any im-

proper use of your traditional IRA by you, your

beneficiary, or any disqualified person.

Disqualified persons include your fiduciary

and members of your family (spouse, ancestor,

lineal descendent, and any spouse of a lineal

descendent).

The following are examples of prohibited

transactions with a traditional IRA.

•

Borrowing money from it; see Pub. 590-B.

•

Selling property to it.

•

Using it as security for a loan.

•

Buying property for personal use (present

or future) with IRA funds.

Effect on an IRA account. Generally, if you or

your beneficiary engages in a prohibited trans-

action in connection with your traditional IRA

account at any time during the year, the account

stops being an IRA as of the first day of that

year.

Effect on you or your beneficiary. If your ac-

count stops being an IRA because you or your

beneficiary engaged in a prohibited transaction,

the account is treated as distributing all its as-

sets to you at their fair market values on the first

day of the year. If the total of those values is

more than your basis in the IRA, you will have a

taxable gain that is includible in your income.

For information on figuring your gain and report-

ing it in income, see Are Distributions Taxable,

earlier. The distribution may be subject to addi-

tional taxes or penalties.

Taxes on prohibited transactions. If some-

one other than the owner or beneficiary of a tra-

ditional IRA engages in a prohibited transaction,

that person may be liable for certain taxes. In

general, there is a 15% tax on the amount of the

prohibited transaction and a 100% additional

tax if the transaction isn't corrected.

More information. For more information on

prohibited transactions, see What Acts Result in

Penalties or Additional Taxes? in chapter 1 of

Pub. 590-A.

Investment in Collectibles

If your traditional IRA invests in collectibles, the

amount invested is considered distributed to

you in the year invested. You may have to pay

the 10% additional tax on early distributions,

discussed later.

Collectibles. These include:

•

Artworks,

•

Rugs,

•

Antiques,

•

Metals,

•

Gems,

•

Stamps,

•

Coins,

•

Alcoholic beverages, and

•

Certain other tangible personal property.

Exception. Your IRA can invest in one-,

one-half-, one-quarter-, or one-tenth-ounce U.S.

gold coins, or one-ounce silver coins minted by

the Treasury Department. It can also invest in

certain platinum coins and certain gold, silver,

palladium, and platinum bullion.

Excess Contributions

Generally, an excess contribution is the amount

contributed to your traditional IRA(s) for the year

that is more than the smaller of:

•

The maximum deductible amount for the

year (for 2023, this is $6,500 ($7,500 if you

are 50 or older)); or

•

Your taxable compensation for the year.

An excess contribution could be the result of

your contribution, your spouse's contribution,

your employer's contribution, or an improper

rollover contribution. If your employer makes

contributions on your behalf to a SEP IRA, see

chapter 2 of Pub. 560.

Tax on excess contributions. In general, if

the excess contributions for a year aren't with-

drawn by the date your return for the year is due

(including extensions), you are subject to a 6%

tax. You must pay the 6% tax each year on ex-

cess amounts that remain in your traditional IRA

at the end of your tax year. The tax can't be

more than 6% of the combined value of all your

IRAs as of the end of your tax year. The addi-

tional tax is figured on Form 5329.

Excess contributions withdrawn by due

date of return. You won't have to pay the 6%

tax if you withdraw an excess contribution made

during a tax year and you also withdraw interest

or other income earned on the excess contribu-

tion. You must complete your withdrawal by the

date your tax return for that year is due, includ-

ing extensions.

How to treat withdrawn contributions.

Don't include in your gross income an excess

contribution that you withdraw from your tradi-

tional IRA before your tax return is due if both

the following conditions are met.

•

No deduction was allowed for the excess

contribution.

•

You withdraw the interest or other income

earned on the excess contribution.

You can take into account any loss on the con-

tribution while it was in the IRA when figuring

the amount that must be withdrawn. If there was

a loss, the net income you must withdraw may

be a negative amount.

How to treat withdrawn interest or other

income. You must include in your gross in-

come the interest or other income that was

earned on the excess contribution. Report it on

your return for the year in which the excess con-

tribution was made. Your withdrawal of interest

or other income may be subject to an additional

10% tax on early distributions, discussed later.

Beginning on or after December 29, 2022,

the 10% additional tax will not apply to your

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 87

withdrawal of interest or other income, if with-

drawn on or before the due date (including ex-

tensions) of the income tax return. See Pub.

590-B for more information.

Excess contributions withdrawn after due

date of return. In general, you must include all

distributions (withdrawals) from your traditional

IRA in your gross income. However, if the fol-

lowing conditions are met, you can withdraw ex-

cess contributions from your IRA and not in-

clude the amount withdrawn in your gross

income.

•

Total contributions (other than rollover con-

tributions) for 2023 to your IRA weren't

more than $6,500 ($7,500 if you are 50 or

older).

•

You didn't take a deduction for the excess

contribution being withdrawn.

The withdrawal can take place at any time, even

after the due date, including extensions, for fil-

ing your tax return for the year.

Excess contribution deducted in an earlier

year. If you deducted an excess contribution in

an earlier year for which the total contributions

weren't more than the maximum deductible

amount for that year (see the following table),

you can still remove the excess from your tradi-

tional IRA and not include it in your gross in-

come. To do this, file Form 1040-X for that year

and don't deduct the excess contribution on the

amended return. Generally, you can file an

amended return within 3 years after you filed

your return or 2 years from the time the tax was

paid, whichever is later.

Year(s)

Contribution

limit

Contribution

limit if 50 or

older at the

end of the

year

2023 $6,500 $7,500

2019 through

2022

$6,000 $7,000

2013 through

2018

$5,500 $6,500

2008 through

2012

$5,000 $6,000

2006 or 2007 $4,000 $5,000

2005 $4,000 $4,500

2002 through

2004

$3,000 $3,500

1997 through

2001

$2,000 —

before 1997 $2,250 —

Excess due to incorrect rollover informa-

tion. If an excess contribution in your traditional

IRA is the result of a rollover and the excess oc-

curred because the information the plan was re-

quired to give you was incorrect, you can with-

draw the excess contribution. The limits

mentioned above are increased by the amount

of the excess that is due to the incorrect infor-

mation. You will have to amend your return for

the year in which the excess occurred to correct

the reporting of the rollover amounts in that

year. Don't include in your gross income the

part of the excess contribution caused by the in-

correct information. For more information, see

Excess Contributions under What Acts Result in

Penalties or Additional Taxes? in Pub. 590-A.

Early Distributions

You must include early distributions of taxable

amounts from your traditional IRA in your gross

income. Early distributions are also subject to

an additional 10% tax. See the discussion of

Form 5329 under Reporting Additional Taxes,

later, to figure and report the tax.

Early distributions defined. Early distribu-

tions are generally amounts distributed from

your traditional IRA account or annuity before

you are age 59

/2.

Age 59

/2 rule. Generally, if you are under age

/2, you must pay a 10% additional tax on the

distribution of any assets (money or other prop-

erty) from your traditional IRA. Distributions be-

fore you are age 59

/2 are called early distribu-

tions.

The 10% additional tax applies to the part of

the distribution that you have to include in gross

income. It is in addition to any regular income

tax on that amount.

After age 59

/2 and before age 72. After

you reach age 59

/2, you can receive distribu-

tions without having to pay the 10% additional

tax. Even though you can receive distributions

after you reach age 59

/2, distributions aren't re-

quired until you reach age 72. See When Must

You Withdraw IRA Assets? (Required Minimum

Distributions), earlier.

Exceptions. There are several exceptions to

the age 59

/2 rule. Even if you receive a distribu-

tion before you are age 59

/2, you may not have

to pay the 10% additional tax if you are in one of

the following situations.

•

You have unreimbursed medical expenses

that are more than 7.5% of your AGI.

•

The distribution is for the cost of your medi-

cal insurance due to a period of unemploy-

ment.

•

You are totally and permanently disabled.

•

You have been certified as having a termi-

nal illness.

•

You are the beneficiary of a deceased IRA

owner.

•

You are receiving distributions in the form

of a series of substantially equal periodic

payments.

•

The distribution is income on a corrective

distribution.

•

The distribution is for your qualified higher

education expenses.

•

You use the distributions to buy, build, or

rebuild a first home.

•

The distribution is due to an IRS levy of the

IRA or retirement plan.

•

The distribution is a qualified reservist dis-

tribution.

Most of these exceptions are explained under

Early Distributions under What Acts Result in

Penalties or Additional Taxes? in chapter 1 of

Pub. 590-B.

Note. Distributions that are timely and prop-

erly rolled over, as discussed earlier, aren't sub-

ject to either regular income tax or the 10% ad-

ditional tax. Certain withdrawals of excess

contributions after the due date of your return

are also tax free and therefore not subject to the

10% additional tax. (See Excess contributions

withdrawn after due date of return, earlier.) This

also applies to transfers incident to divorce, as

discussed earlier.

Receivership distributions. Early distribu-

tions (with or without your consent) from sav-

ings institutions placed in receivership are sub-

ject to this tax unless one of the exceptions

listed earlier applies. This is true even if the dis-

tribution is from a receiver that is a state agency.

Additional 10% tax. The additional tax on

early distributions is 10% of the amount of the

early distribution that you must include in your

gross income. This tax is in addition to any reg-

ular income tax resulting from including the dis-

tribution in income.

Nondeductible contributions. The tax on

early distributions doesn't apply to the part of a

distribution that represents a return of your non-

deductible contributions (basis).

More information. For more information on

early distributions, see What Acts Result in Pen-

alties or Additional Taxes? in chapter 1 of Pub.

590-B.

Excess Accumulations

(Insufficient Distributions)

You can't keep amounts in your traditional IRA

indefinitely. Generally, you must begin receiving

distributions by April 1 of the year following the

year in which you reach age 72. The required

minimum distribution for any year after the year

in which you reach age 72 must be made by

December 31 of that later year.

Individuals who reach age 72 after De-

cember 31, 2022, may delay receiving

their required minimum distributions

until April 1 of the year following the year in

which they reach age 73.

Tax on excess. If distributions are less than

the required minimum distribution for the year,

you may have to pay a 25% excise tax for that

year on the amount not distributed as required.

The excise tax on distributions that are

less than the required minimum distri-

bution amount is reduced to 25% for

tax years beginning after December 29, 2022.

Also, there is an additional reduction to 10% for

taxpayers meeting additional requirements. See

Pub. 590-B for more information.

Request to waive the tax. If the excess accu-

mulation is due to reasonable error, and you

have taken, or are taking, steps to remedy the

insufficient distribution, you can request that the

tax be waived. If you believe you qualify for this

relief, attach a statement of explanation and

complete Form 5329 as instructed under

Waiver of tax for reasonable cause in the In-

structions for Form 5329.

Exemption from tax. If you are unable to take

required distributions because you have a

TIP

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88 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

traditional IRA invested in a contract issued by

an insurance company that is in state insurer

delinquency proceedings, the 25% excise tax

doesn't apply if the conditions and requirements

of Revenue Procedure 92-10 are satisfied.

More information. For more information on

excess accumulations, see What Acts Result in

Penalties or Additional Taxes? in chapter 1 of

Pub. 590-B.

Reporting Additional Taxes

Generally, you must use Form 5329 to report

the tax on excess contributions, early distribu-

tions, and excess accumulations.

Filing a tax return. If you must file an individ-

ual income tax return, complete Form 5329 and

attach it to your Form 1040 or 1040-SR. Enter

the total additional taxes due on Schedule 2

(Form 1040), line 8.

Not filing a tax return. If you don't have to file

a tax return but do have to pay one of the addi-

tional taxes mentioned earlier, file the comple-

ted Form 5329 with the IRS at the time and

place you would have filed your Form 1040 or

1040-SR. Be sure to include your address on

page 1 and your signature and date on page 2.

Enclose, but don't attach, a check or money or-

der made payable to “United States Treasury”

for the tax you owe, as shown on Form 5329.

Enter your social security number and “2023

Form 5329” on your check or money order.

Form 5329 not required. You don't have to

use Form 5329 if any of the following situations

exists.

•

Distribution code 1 (early distribution) is

correctly shown in box 7 of all your Forms

1099-R. If you don't owe any other addi-

tional tax on a distribution, multiply the tax-

able part of the early distribution by 10%

(0.10) and enter the result on Schedule 2

(Form 1040), line 8. Enter “No” to the left of

the line to indicate that you don't have to

file Form 5329. However, if you owe this tax

and also owe any other additional tax on a

distribution, don't enter this 10% additional

tax directly on your Form 1040 or 1040-SR.

You must file Form 5329 to report your ad-

ditional taxes.

•

If you rolled over part or all of a distribution

from a qualified retirement plan, the part

rolled over isn't subject to the tax on early

distributions.

•

If you have a qualified disaster distribution.

Roth IRAs

Regardless of your age, you may be able to es-

tablish and make nondeductible contributions to

a retirement plan called a Roth IRA.

Contributions not reported. You don't report

Roth IRA contributions on your return.

What Is a Roth IRA?

A Roth IRA is an individual retirement plan that,

except as explained in this chapter, is subject to

the rules that apply to a traditional IRA (defined

earlier). It can be either an account or an annu-

ity. Individual retirement accounts and annuities

are described under How Can a Traditional IRA

Be Opened? in chapter 1 of Pub. 590-A.

To be a Roth IRA, the account or annuity

must be designated as a Roth IRA when it is

opened. A deemed IRA can be a Roth IRA. Be-

ginning in tax year 2023, both a SEP or SIMPLE

IRA can be designated as a Roth IRA.

Unlike a traditional IRA, you can't deduct

contributions to a Roth IRA. But, if you satisfy

the requirements, qualified distributions (dis-

cussed later) are tax free. You can leave

amounts in your Roth IRA as long as you live.

When Can a Roth IRA Be

Opened?

You can open a Roth IRA at any time. However,

the time for making contributions for any year is

limited. See When Can You Make Contributions

under Can You Contribute to a Roth IRA? next.

Can You Contribute to a

Roth IRA?

Generally, you can contribute to a Roth IRA if

you have taxable compensation (defined later)

and your modified AGI (defined later) is less

than:

•

$228,000 for married filing jointly or qualify-

ing surviving spouse;

•

$153,000 for single, head of household, or

married filing separately and you didn't live

with your spouse at any time during the

year; or

•

$10,000 for married filing separately and

you lived with your spouse at any time dur-

ing the year.

You may be eligible to claim a credit for

contributions to your Roth IRA. For

more information, see chapter 3 of Pub.

590-A.

Is there an age limit for contributions? Con-

tributions can be made to your Roth IRA regard-

less of your age.

Can you contribute to a Roth IRA for your

spouse? You can contribute to a Roth IRA for

your spouse provided the contributions satisfy

the Kay Bailey Hutchison Spousal IRA limit (dis-

cussed under How Much Can Be Contributed,

earlier, under Traditional IRAs), you file jointly,

and your modified AGI is less than $228,000.

Compensation. Compensation includes wa-

ges, salaries, tips, professional fees, bonuses,

and other amounts received for providing per-

sonal services. It also includes commissions,

self-employment income, nontaxable combat

pay, military differential pay, taxable alimony and

separate maintenance payments, and taxable

non-tuition fellowship and stipend payments.

See What is compensation, earlier, for more

information.

Modified AGI. Your modified AGI for Roth IRA

purposes is your AGI as shown on your return

with some adjustments. Use Worksheet 9-2 to

determine your modified AGI.

TIP

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 89

Worksheet 9-2. Modified AGI for Roth IRA Purposes

Keep for Your Records

Use this worksheet to figure your modified AGI for Roth IRA purposes.

1. Enter your AGI from Form 1040 or 1040-SR, line 11 ...............................

2. Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth

IRA (included on Form 1040 or 1040-SR, line 4b) and a rollover from a qualified retirement

plan to a Roth IRA (included on Form 1040 or 1040-SR, line 5b) ...................... 2.

3. Subtract line 2 from line 1 ....................................................

4. Enter any traditional IRA deduction from Schedule 1 (Form 1040), line 20 ..............

5. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 .........

6. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 ......

7. Enter any foreign housing deduction from Form 2555, line 50 ........................

8. Enter any excludable savings bond interest from Form 8815, line 14 ..................

9. Enter any excluded employer-provided adoption benefits from Form 8839, line 28 ........

10. Add the amounts on lines 3 through 9 ..........................................

10.

11. Enter:

• $228,000 if married filing jointly or qualifying surviving spouse,

• $10,000 if married filing separately and you lived with your

spouse at any time during the year, or

• $153,000 for all others .................................................... 11.

Is the amount on line 10 more than the amount on line 11?

If yes, then see the Note below.

If no, then the amount on line 10 is your modified AGI for Roth IRA purposes.

Note. If the amount on line 10 is more than the amount on line 11 and you have other income or loss items, such as social

security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the

purpose of figuring your modified AGI for Roth IRA purposes. (If you receive social security benefits, use Worksheet 1 in

Appendix B of Pub. 590-A to refigure your AGI.) Then, go to line 3 above in this Worksheet 9-2 to refigure your modified AGI. If

you don't have other income or loss items subject to AGI-based phaseouts, your modified AGI for Roth IRA purposes is the

amount on line 10.

How Much Can Be Contributed?

The contribution limit for Roth IRAs generally

depends on whether contributions are made

only to Roth IRAs or to both traditional IRAs and

Roth IRAs.

Roth IRAs only. If contributions are made only

to Roth IRAs, your contribution limit is generally

the lesser of the following amounts.

•

$6,500 ($7,500 if you are 50 or older in

2023).

•

Your taxable compensation.

However, if your modified AGI is above a certain

amount, your contribution limit may be reduced,

as explained later under Contribution limit re-

duced.

Roth IRAs and traditional IRAs. If contribu-

tions are made to both Roth IRAs and traditional

IRAs established for your benefit, your contribu-

tion limit for Roth IRAs is generally the same as

your limit would be if contributions were made

only to Roth IRAs, but then reduced by all con-

tributions for the year to all IRAs other than Roth

IRAs. Employer contributions under a SEP or

SIMPLE IRA plan don't affect this limit.

This means that your contribution limit is

generally the lesser of the following amounts.

•

$6,500 ($7,500 if you are 50 or older in

2023) minus all contributions (other than

employer contributions under a SEP or

SIMPLE IRA plan) for the year to all IRAs

other than Roth IRAs.

•

Your taxable compensation minus all con-

tributions (other than employer contribu-

tions under a SEP or SIMPLE IRA plan) for

the year to all IRAs other than Roth IRAs.

However, if your modified AGI is above a certain

amount, your contribution limit may be reduced,

as explained next under Contribution limit re-

duced.

Contribution limit reduced. If your modified

AGI is above a certain amount, your contribu-

tion limit is gradually reduced. Use Table 9-3 to

determine if this reduction applies to you.

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90 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

Table 9-3. Effect of Modified AGI on Roth IRA Contribution

This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI.

IF you have taxable compensation and

your filing status is...

AND your modified

AGI is... THEN...

Married filing jointly or

Qualifying surviving spouse

less than $218,000 you can contribute up to $6,500 ($7,500 if you are 50 or

older in 2023).

at least $218,000

but less than $228,000

the amount you can contribute is reduced as explained

under Contribution limit reduced in chapter 2 of Pub.

590-A.

$228,000 or more you can't contribute to a Roth IRA.

Married filing separately and you lived

with your spouse at any time during the year

zero (-0-) you can contribute up to $6,500 ($7,500 if you are 50 or

older in 2023).

more than zero (-0-)

but less than $10,000

the amount you can contribute is reduced as explained

under Contribution limit reduced in chapter 2 of Pub.

590-A.

$10,000 or more you can't contribute to a Roth IRA.

Single, Head of household, or Married

filing separately and you didn't live with

your spouse at any time during the year

less than $138,000 you can contribute up to $6,500 ($7,500 if you are 50 or

older in 2023).

at least $138,000

but less than $153,000

the amount you can contribute is reduced as explained

under Contribution limit reduced in chapter 2 of Pub.

590-A.

$153,000 or more you can't contribute to a Roth IRA.

Figuring the reduction. If the amount you

can contribute to your Roth IRA is reduced, see

Worksheet 2-2 under Can You Contribute to a

Roth IRA? in chapter 2 of Pub. 590-A for how to

figure the reduction.

When Can You Make

Contributions?

You can make contributions to a Roth IRA for a

year at any time during the year or by the due

date of your return for that year (not including

extensions).

You can make contributions for 2023 by

the due date (not including extensions)

for filing your 2023 tax return.

What if You Contribute Too Much?

A 6% excise tax applies to any excess contribu-

tion to a Roth IRA.

Excess contributions. These are the contri-

butions to your Roth IRAs for a year that equal

the total of:

1. Amounts contributed for the tax year to

your Roth IRAs (other than amounts prop-

erly and timely

rolled over from a Roth IRA

or properly converted from a traditional

IRA or rolled over from a qualified retire-

ment plan, as described later) that are

more than your contribution limit for the

year; plus

2. Any excess contributions for the preceding

year, reduced by the total of:

a. Any distributions out of your Roth

IRAs for the year, plus

b. Your contribution limit for the year mi-

nus your contributions to all your IRAs

for the year.

TIP

Withdrawal of excess contributions. For

purposes of determining excess contributions,

any contribution that is withdrawn on or before

the due date (including extensions) for filing

your tax return for the year is treated as an

amount not contributed. This treatment applies

only if any earnings on the contributions are

also withdrawn. The earnings are considered to

have been earned and received in the year the

excess contribution was made.

Applying excess contributions. If contribu-

tions to your Roth IRA for a year were more than

the limit, you can apply the excess contribution

in one year to a later year if the contributions for

that later year are less than the maximum al-

lowed for that year.

Can You Move Amounts

Into a Roth IRA?

You may be able to convert amounts from either

a traditional, SEP, or SIMPLE IRA into a Roth

IRA. You may be able to roll amounts over from

a qualified retirement plan to a Roth IRA. You

may be able to recharacterize contributions

made to one IRA as having been made directly

to a different IRA. You can roll amounts over

from a designated Roth account or from one

Roth IRA to another Roth IRA.

Conversions

You can convert a traditional IRA to a Roth IRA.

The conversion is treated as a rollover, regard-

less of the conversion method used. Most of the

rules for rollovers, described earlier under Roll-

over From One IRA Into Another under Tradi-

tional IRAs, apply to these rollovers. However,

the 1-year waiting period doesn't apply.

Conversion methods. You can convert

amounts from a traditional IRA to a Roth IRA in

any of the following ways.

•

Rollover. You can receive a distribution

from a traditional IRA and roll it over (con-

tribute it) to a Roth IRA within 60 days after

the distribution.

•

Trustee-to-trustee transfer. You can di-

rect the trustee of the traditional IRA to

transfer an amount from the traditional IRA

to the trustee of the Roth IRA.

•

Same trustee transfer. If the trustee of

the traditional IRA also maintains the Roth

IRA, you can direct the trustee to transfer

an amount from the traditional IRA to the

Roth IRA.

Same trustee. Conversions made with the

same trustee can be made by redesignating the

traditional IRA as a Roth IRA, rather than open-

ing a new account or issuing a new contract.

Rollover from a qualified retirement plan

into a Roth IRA. You can roll over into a Roth

IRA all or part of an eligible rollover distribution

you receive from your (or your deceased spou-

se's):

•

Employer's qualified pension, profit-shar-

ing, or stock bonus plan;

•

Annuity plan;

•

Tax-sheltered annuity plan (section 403(b)

plan); or

•

Governmental deferred compensation plan

(section 457 plan).

Any amount rolled over is subject to the same

rules as those for converting a traditional IRA

into a Roth IRA. Also, the rollover contribution

must meet the rollover requirements that apply

to the specific type of retirement plan.

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Publication 17 (2023) Chapter 9 Individual Retirement Arrangements (IRAs) 91

Income. You must include in your gross in-

come distributions from a qualified retirement

plan that you would have had to include in in-

come if you hadn't rolled them over into a Roth

IRA. You don't include in gross income any part

of a distribution from a qualified retirement plan

that is a return of basis (after-tax contributions)

to the plan that was taxable to you when paid.

These amounts are normally included in income

on your return for the year of the rollover from

the qualified employer plan to a Roth IRA.

If you must include any amount in your

gross income, you may have to in-

crease your withholding or make esti-

mated tax payments. See Pub. 505, Tax With-

holding and Estimated Tax.

For more information, see Rollover From

Employer's Plan Into a Roth IRA in chapter 2 of

Pub. 590-A.

Converting from a SIMPLE IRA. Generally,

you can convert an amount in your SIMPLE IRA

to a Roth IRA under the same rules explained

earlier under Converting From Any Traditional

IRA to a Roth IRA under Traditional IRAs.

However, you can't convert any amount dis-

tributed from the SIMPLE IRA plan during the

2-year period beginning on the date you first

participated in any SIMPLE IRA plan main-

tained by your employer.

More information. For more detailed informa-

tion on conversions, see Can You Move

Amounts Into a Roth IRA? in chapter 2 of Pub.

590-A.

Rollover From a Roth IRA

You can withdraw, tax free, all or part of the as-

sets from one Roth IRA if you contribute them

within 60 days to another Roth IRA. Most of the

rules for rollovers, explained earlier under Roll-

over From One IRA Into Another under Tradi-

tional IRAs, apply to these rollovers.

Rollover from designated Roth account. A

rollover from a designated Roth account can

CAUTION

only be made to another designated Roth ac-

count or to a Roth IRA. For more information

about designated Roth accounts, see Designa-

ted Roth accounts under Rollovers in Pub. 575.

Are Distributions Taxable?

You don't include in your gross income qualified

distributions or distributions that are a return of

your regular contributions from your Roth

IRA(s). You also don't include distributions from

your Roth IRA that you roll over tax free into an-

other Roth IRA. You may have to include part of

other distributions in your income. See Ordering

rules for distributions, later.

What are qualified distributions? A qualified

distribution is any payment or distribution from

your Roth IRA that meets the following require-

ments.

1. It is made after the 5-year period begin-

ning with the first tax year for which a con-

tribution was made to a Roth IRA set up

for your benefit.

2. The payment or distribution is:

a. Made on or after the date you reach

age 59

/2,

b. Made because you are disabled,

c. Made to a beneficiary or to your es-

tate after your death, or

d. To pay up to $10,000 (lifetime limit) of

certain qualified first-time homebuyer

amounts. See First home under What

Acts Result in Penalties or Additional

Taxes? in chapter 1 of Pub. 590-B for

more information.

Additional tax on distributions of conver-

sion and certain rollover contributions

within 5-year period. If, within the 5-year pe-

riod starting with the first day of your tax year in

which you convert an amount from a traditional

IRA or roll over an amount from a qualified re-

tirement plan to a Roth IRA, you take a distribu-

tion from a Roth IRA, you may have to pay the

10% additional tax on early distributions. You

must generally pay the 10% additional tax on

any amount attributable to the part of the

amount converted or rolled over (the conversion

or rollover contribution) that you had to include

in income. A separate 5-year period applies to

each conversion and rollover. See Ordering

rules for distributions, later, to determine the

amount, if any, of the distribution that is attribut-

able to the part of the conversion or rollover

contribution that you had to include in income.

Additional tax on other early distributions.

Unless an exception applies, you must pay the

10% additional tax on the taxable part of any

distributions that aren't qualified distributions.

See Pub. 590-B for more information.

Ordering rules for distributions. If you re-

ceive a distribution from your Roth IRA that isn't

a qualified distribution, part of it may be taxable.

There is a set order in which contributions (in-

cluding conversion contributions and rollover

contributions from qualified retirement plans)

and earnings are considered to be distributed

from your Roth IRA. Regular contributions are

distributed first. See Ordering Rules for Distribu-

tions under Are Distributions Taxable? in chap-

ter 2 of Pub. 590-B for more information.

Must you withdraw or use Roth IRA assets?

You aren't required to take distributions from

your Roth IRA at any age. The minimum distri-

bution rules that apply to traditional IRAs don't

apply to Roth IRAs while the owner is alive.

However, after the death of a Roth IRA owner,

certain minimum distribution rules that apply to

traditional IRAs also apply to Roth IRAs.

More information. For more detailed informa-

tion on Roth IRAs, see chapter 2 of Pub. 590-A

and Pub. 590-B.

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92 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2023)

Part Three.

Standard

Deduction,

Itemized

Deductions, and

Other

Deductions

After you have figured your adjusted gross income, you are ready to

subtract the deductions used to figure taxable income. You can subtract

either the standard deduction or itemized deductions, and, if you qualify,

the qualified business income deduction. Itemized deductions are

deductions for certain expenses that are listed on Schedule A (Form 1040).

The three chapters in this part discuss the standard deduction and certain

itemized deductions. See chapter 10 for the factors to consider when

deciding whether to take the standard deduction or itemized deductions.

The Form 1040 and Form 1040-SR schedules that are discussed in these

chapters are:

•

Schedule 1, Additional Income and Adjustments to Income;

•

Schedule 2 (Part II), Other Taxes; and

•

Schedule 3 (Part I), Nonrefundable Credits.

10.

Standard

Deduction

What's New

Standard deduction increased. The stand-

ard deduction for taxpayers who don't itemize

their deductions on Schedule A (Form 1040)

has increased. The amount of your standard

deduction depends on your filing status and

other factors. Use the 2023 Standard Deduction

Tables near the end of this chapter to figure

your standard deduction.

Introduction

This chapter discusses the following topics.

•

How to figure the amount of your standard

deduction.

•

The standard deduction for dependents.

•

Who should itemize deductions.

Most taxpayers have a choice of either tak-

ing a standard deduction or itemizing their de-

ductions. If you have a choice, you can use the

method that gives you the lower tax.

The standard deduction is a dollar amount

that reduces your taxable income. It is a benefit

that eliminates the need for many taxpayers to

itemize actual deductions, such as medical ex-

penses, charitable contributions, and taxes, on

Schedule A (Form 1040). The standard deduc-

tion is higher for taxpayers who:

•

Are 65 or older, or

•

Are blind.

You benefit from the standard deduc-

tion if your standard deduction is more

than the total of your allowable itemized

deductions.

Persons not eligible for the standard de-

duction. Your standard deduction is zero and

you should itemize any deductions you have if:

•

Your filing status is married filing sepa-

rately, and your spouse itemizes deduc-

tions on their return;

•

You are filing a tax return for a short tax

year because of a change in your annual

accounting period; or

•

You are a nonresident or dual-status alien

during the year. You are considered a

dual-status alien if you were both a nonres-

ident and resident alien during the year.

If you are a nonresident alien who is married

to a U.S. citizen or resident alien at the end of

the year, you can choose to be treated as a U.S.

resident. (See Pub. 519.) If you make this

choice, you can take the standard deduction.

If you can be claimed as a dependent

on another person’s return (such as

your parents’ return), your standard de-

duction may be limited. See Standard Deduc-

tion for Dependents, later.

Useful Items

You may want to see:

Publication

501 Dependents, Standard Deduction,

and Filing Information

502 Medical and Dental Expenses

526 Charitable Contributions

530 Tax Information for Homeowners

547 Casualties, Disasters, and Thefts

550 Investment Income and Expenses

936 Home Mortgage Interest Deduction

TIP

CAUTION

501

502

526

530

547

550

936

970 Tax Benefits for Education

Form (and Instructions)

Schedule A (Form 1040) Itemized

Deductions

Standard Deduction

Amount

The standard deduction amount depends on

your filing status, whether you are 65 or older or

blind, and whether another taxpayer can claim

you as a dependent. Generally, the standard

deduction amounts are adjusted each year for

inflation. The standard deduction amounts for

most people are shown in Table 10-1.

Decedent's final return. The standard deduc-

tion for a decedent's final tax return is the same

as it would have been had the decedent contin-

ued to live. However, if the decedent wasn't 65

or older at the time of death, the higher stand-

ard deduction for age can't be claimed.

Higher Standard

Deduction for Age (65 or

Older)

If you are age 65 or older on the last day of the

year and don't itemize deductions, you are enti-

tled to a higher standard deduction. You are

considered 65 on the day before your 65th birth-

day. Therefore, you can take a higher standard

deduction for 2023 if you were born before Jan-

uary 2, 1959.

Use Table 10-2 to figure the standard de-

duction amount.

Death of a taxpayer. If you are preparing a re-

turn for someone who died in 2023, read this

before using Table 10-2 or Table 10-3. Consider

the taxpayer to be 65 or older at the end of 2023

only if they were 65 or older at the time of death.

Even if the taxpayer was born before January 2,

1959, they are not considered 65 or older at the

970

Schedule A (Form 1040)

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Publication 17 (2023) Chapter 10 Standard Deduction 93

end of 2023 unless they were 65 or older at the

time of death.

A person is considered to reach age 65 on

the day before their 65th birthday.

Higher Standard

Deduction for Blindness

If you are blind on the last day of the year and

you don't itemize deductions, you are entitled to

a higher standard deduction.

Not totally blind. If you aren't totally blind, you

must get a certified statement from an eye doc-

tor (ophthalmologist or optometrist) that:

•

You can't see better than 20/200 in the bet-

ter eye with glasses or contact lenses, or

•

Your field of vision is 20 degrees or less.

If your eye condition isn't likely to improve

beyond these limits, the statement should in-

clude this fact. Keep the statement in your re-

cords.

If your vision can be corrected beyond these

limits only by contact lenses that you can wear

only briefly because of pain, infection, or ulcers,

you can take the higher standard deduction for

blindness if you otherwise qualify.

Spouse 65 or Older or

Blind

You can take the higher standard deduction if

your spouse is age 65 or older or blind and:

•

You file a joint return, or

•

You file a separate return and your spouse

had no gross income and can't be claimed

as a dependent by another taxpayer.

Death of a spouse. If your spouse died in

2023 before reaching age 65, you can't take a

higher standard deduction because of your

spouse. Even if your spouse was born before

January 2, 1959, your spouse isn't considered

65 or older at the end of 2023 unless your

spouse was 65 or older at the time of death.

A person is considered to reach age 65 on

the day before their 65th birthday.

Example. Your spouse was born on Febru-

ary 14, 1958, and died on February 13, 2023.

Your spouse is considered age 65 at the time of

death. However, if your spouse died on Febru-

ary 12, 2023, your spouse isn't considered age

65 at the time of death and isn't 65 or older at

the end of 2023.

You can't claim the higher standard de-

duction for an individual other than

yourself and your spouse.

Higher Standard

Deduction for Net Disaster

Loss

Your standard deduction may be increased by

any net qualified disaster loss.

See the Instructions for Form 1040 and the

Instructions for Schedule A (Form 1040) for

more information on how to figure your

CAUTION

increased standard deduction and how to report

it on Form 1040 or 1040-SR.

Examples

The following examples illustrate how to deter-

mine your standard deduction using Tables

10-1 and 10-2.

Example 1. Hunter, 46, and Avery, 33, are

filing a joint return for 2023. Neither is blind, and

neither can be claimed as a dependent. They

decide not to itemize their deductions. They use

Table 10-1. Their standard deduction is

$27,700.

Example 2. The facts are the same as in

Example 1, except that Hunter is blind at the

end of 2023. Hunter and Avery use Table 10-2.

Their standard deduction is $29,200.

Example 3. Dylan and Dru are filing a joint

return for 2023. Both are over age 65. Neither is

blind, and neither can be claimed as a depend-

ent. If they don't itemize deductions, they use

Table 10-2. Their standard deduction is

$30,700.

Standard Deduction for

Dependents

The standard deduction for an individual who

can be claimed as a dependent on another per-

son's tax return is generally limited to the

greater of:

•

$1,250, or

•

The individual's earned income for the year

plus $400 (but not more than the regular

standard deduction amount, generally

$13,850).

However, if the individual is 65 or older or

blind, the standard deduction may be higher.

If you (or your spouse, if filing jointly) can be

claimed as a dependent on someone else's re-

turn, use Table 10-3 to determine your standard

deduction.

Earned income defined. Earned income is

salaries, wages, tips, professional fees, and

other amounts received as pay for work you ac-

tually perform.

For purposes of the standard deduction,

earned income also includes any part of a taxa-

ble scholarship or fellowship grant. See chap-

ter 1 of Pub. 970 for more information on what

qualifies as a scholarship or fellowship grant.

Example 1. You are 16 years old and sin-

gle. Your parents can claim you as a dependent

on their 2023 tax return. You have interest in-

come of $780 and wages of $150. You have no

itemized deductions and use Table 10-3 to find

your standard deduction. You enter $150

(earned income) on line 1, $550 ($150 + $400)

on line 3, $1,250 (the larger of $550 and

$1,250) on line 5, and $13,850 on line 6. Your

standard deduction, on line 7a, is $1,250 (the

smaller of $1,250 and $13,850).

Example 2. You are a 22-year-old college

student and can be claimed as a dependent on

your parents' 2023 tax return. You are married

filing a separate return. Your spouse doesn't

itemize deductions. You have $1,500 in interest

income and wages of $3,800 and no itemized

deductions. You find your standard deduction

by using Table 10-3. You enter earned income,

$3,800, on line 1. You add lines 1 and 2 and en-

ter $4,200 ($3,800 + $400) on line 3. On line 5,

you enter $4,200, the larger of lines 3 and 4.

Because you are married filing a separate re-

turn, you enter $13,850 on line 6. On line 7a,

you enter $4,200 as the standard deduction

amount because it is smaller than $13,850, the

amount on line 6.

Example 3. You are single and can be

claimed as a dependent on your parents' 2023

tax return. You are 18 years old and blind and

have interest income of $1,300, wages of

$2,900, and no itemized deductions. You use

Table 10-3 to find the standard deduction

amount. You enter wages of $2,900 on line 1,

and add lines 1 and 2 and enter $3,300 ($2,900

+ $400) on line 3. On line 5, you enter $3,300,

the larger of lines 3 and 4. Because you are sin-

gle, you enter $13,850 on line 6 and $3,300 on

line 7a. This is the smaller of the amounts on

lines 5 and 6. Because you checked one box in

the top part of the worksheet, you enter $1,850

on line 7b, then add the amounts on lines 7a

and 7b and enter the standard deduction

amount of $5,150 ($3,300 + $1,850) on line 7c.

Example 4. You are 18 years old and single

and can be claimed as a dependent on your pa-

rents’ 2023 tax return. You have wages of

$7,000, interest income of $500, a business

loss of $3,000, and no itemized deductions. You

use Table 10-3 to figure the standard deduction

amount. You enter $4,000 ($7,000 − $3,000) on

line 1, and add lines 1 and 2 and enter $4,400

($4,000 + $400) on line 3. On line 5, you enter

$4,400, the larger of lines 3 and 4, and, be-

cause you are single, $13,850 on line 6. On

line 7a, you enter $4,400 as the standard de-

duction amount because it is smaller than

$13,850, the amount on line 6.

Who Should Itemize

You should itemize deductions if your total de-

ductions are more than your standard deduction

amount. Also, you should itemize if you don't

qualify for the standard deduction, as discussed

earlier under Persons not eligible for the stand-

ard deduction.

You should first figure your itemized deduc-

tions and compare that amount to your standard

deduction to make sure you are using the

method that gives you the greater benefit.

When to itemize. You may benefit from

itemizing your deductions on Schedule A (Form

1040) if you:

•

Don't qualify for the standard deduction,

•

Had large uninsured medical and dental

expenses during the year,

•

Paid interest and taxes on your home,

•

Had large uninsured casualty or theft los-

ses,

•

Made large contributions to qualified chari-

ties, or

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94 Chapter 10 Standard Deduction Publication 17 (2023)

•

Have total itemized deductions that are

more than the standard deduction to which

you are otherwise entitled.

These deductions are explained in chapter 11

and in the publications listed under Useful

Items, earlier.

If you decide to itemize your deductions,

complete Schedule A and attach it to your Form

1040 or 1040-SR. Enter the amount from

Schedule A, line 17, on Form 1040 or 1040-SR,

line 12.

Electing to itemize for state tax or other

purposes. Even if your itemized deductions

are less than your standard deduction, you can

elect to itemize deductions on your federal re-

turn rather than taking the standard deduction.

You may want to do this if, for example, the tax

benefit of itemizing your deductions on your

state tax return is greater than the tax benefit

you lose on your federal return by not taking the

standard deduction. To make this election, you

must check the box on line 18 of Schedule A.

Changing your mind. If you don't itemize your

deductions and later find that you should have

itemized—or if you itemize your deductions and

later find you shouldn't have—you can change

your return by filing Form 1040-X, Amended

U.S. Individual Income Tax Return. See Amen-

ded Returns and Claims for Refund in chapter 1

for more information on amended returns.

Married persons who filed separate re-

turns. You can change methods of taking de-

ductions only if you and your spouse both make

the same changes. Both of you must file a con-

sent to assessment for any additional tax either

one may owe as a result of the change.

You and your spouse can use the method

that gives you the lower total tax, even though

one of you may pay more tax than you would

have paid by using the other method. You both

must use the same method of claiming deduc-

tions. If one itemizes deductions, the other

should itemize because they won't qualify for

the standard deduction. See Persons not eligi-

ble for the standard deduction, earlier.

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Publication 17 (2023) Chapter 10 Standard Deduction 95

2023 Standard Deduction Tables

CAUTION

If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you can't take the standard deduction

even if you were born before January 2, 1959, or are blind.

Standard Deduction Chart for Most People*Table 10-1.

IF your filing status is... THEN your standard deduction is...

Single or Married filing separately $13,850

Married filing jointly or Qualifying surviving spouse 27,700

Head of household 20,800

* Don't use this chart if you were born before January 2, 1959, are blind, or if someone else can claim you (or your spouse, if filing jointly) as a dependent. Use Table 10-2 or

10-3 instead.

Standard Deduction Chart for People Born Before January 2, 1959, or Who Are Blind*Table 10-2.

Check the correct number of boxes below. Then go to the chart.

You:

Born before January 2, 1959 Blind

Your spouse:

Born before January 2, 1959 Blind

Total number of boxes checked

your filing status is...

AND

the number in the box above is...

THEN

your standard deduction is...

Single 1 $15,700

2 17,550

Married filing jointly 1 $29,200

2 30,700

3 32,200

4 33,700

Qualifying surviving spouse 1 $29,200

2 30,700

Married filing 1 $15,350

separately** 2 16,850

3 18,350

4 19,850

Head of household 1 $22,650

2 24,500

* If someone else can claim you (or your spouse, if filing jointly) as a dependent, use Table 10-3 instead.

** You can check the boxes for Your Spouse if your filing status is married filing separately and your spouse had no income, isn’t filing a return, and can’t be claimed as a

dependent on another person’s return.

Standard Deduction Worksheet for Dependents

Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent.

Table 10-3.

Check the correct number of boxes below. Then go to the worksheet.

You:

Born before January 2, 1959 Blind

Your spouse:

Born before January 2, 1959 Blind

Total number of boxes checked

1. Enter your earned income (defined below). If none, enter -0-.

2. Additional amount.

$400

3. Add lines 1 and 2.

4. Minimum standard deduction.

$1,250

5. Enter the larger of line 3 or line 4.

6. Enter the amount shown below for your filing status.

•

Single or Married filing separately—$13,850

•

Married filing jointly—$27,700

•

Head of household—$20,800

7. Standard deduction.

a. Enter the smaller of line 5 or line 6. If born after January 1, 1959, and not blind, stop here. This is your

standard deduction. Otherwise, go on to line 7b. 7a.

b. If born before January 2, 1959, or blind, multiply $1,850 ($1,500 if married) by the number in the box above.

7b.

c. Add lines 7a and 7b. This is your standard deduction for 2023.

7c.

Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any

taxable scholarship or fellowship grant.

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96 Chapter 10 Standard Deduction Publication 17 (2023)

11.

Taxes

Reminders

Limitation on deduction for state and local

taxes. The Tax Cuts and Jobs Act provided for

a temporary limitation on the deduction for state

and local taxes. See Limitation on deduction for

state and local taxes, later.

No deduction for foreign taxes paid for real

estate. You can no longer deduct foreign taxes

you paid on real estate.

Introduction

This chapter discusses which taxes you can de-

duct if you itemize deductions on Schedule A

(Form 1040). It also explains which taxes you

can deduct on other schedules or forms and

which taxes you can’t deduct.

This chapter covers the following topics.

•

Income taxes (federal, state, local, and for-

eign).

•

General sales taxes (state and local).

•

Real estate taxes (state, local, and for-

eign).

•

Personal property taxes (state and local).

•

Taxes and fees you can’t deduct.

Use Table 11-1 as a guide to determine

which taxes you can deduct.

The end of the chapter contains a section

that explains which forms you use to deduct dif-

ferent types of taxes.

Business taxes. You can deduct certain taxes

only if they are ordinary and necessary expen-

ses of your trade or business or of producing in-

come. For information on these taxes, see Busi-

ness Expenses in Chapter 8 of Pub. 334.

State or local taxes. These are taxes imposed

by the 50 states, U.S. territories, or any of their

political subdivisions (such as a county or city),

or by the District of Columbia.

Indian tribal government. An Indian tribal

government recognized by the Secretary of the

Treasury as performing substantial government

functions will be treated as a state for purposes

of claiming a deduction for taxes. Income taxes,

real estate taxes, and personal property taxes

imposed by that Indian tribal government (or by

any of its subdivisions that are treated as politi-

cal subdivisions of a state) are deductible.

General sales taxes. These are taxes im-

posed at one rate on retail sales of a broad

range of classes of items.

Foreign taxes. These are taxes imposed by a

foreign country or any of its political subdivi-

sions.

Useful Items

You may want to see:

Publication

502 Medical and Dental Expenses

503 Child and Dependent Care Expenses

504 Divorced or Separated Individuals

514 Foreign Tax Credit for Individuals

525 Taxable and Nontaxable Income

530 Tax Information for Homeowners

Form (and Instructions)

Schedule A (Form 1040) Itemized

Deductions

Schedule C (Form 1040) Profit or Loss

From Business (Sole Proprietorship)

Schedule E (Form 1040) Supplemental

Income and Loss

Schedule F (Form 1040) Profit or Loss

From Farming

Schedule SE (Form 1040)

Self-Employment Tax

1116 Foreign Tax Credit

For these and other useful items, go to IRS.gov/

Forms.

Tests To Deduct

Any Tax

The following two tests must be met for you to

deduct any tax.

•

The tax must be imposed on you.

•

You must pay the tax during your tax year.

The tax must be imposed on you. In gen-

eral, you can deduct only taxes imposed on

you.

Generally, you can deduct property taxes

only if you are an owner of the property. If your

spouse owns the property and pays the real es-

tate taxes, the taxes are deductible on your

spouse's separate return or on your joint return.

You must pay the tax during your tax year.

If you are a cash basis taxpayer, you can deduct

only those taxes you actually paid during your

tax year. If you pay your taxes by check and the

check is honored by your financial institution,

the day you mail or deliver the check is the date

of payment. If you use a pay-by-phone account

(such as a credit card or electronic funds with-

drawal), the date reported on the statement of

the financial institution showing when payment

was made is the date of payment. If you contest

a tax liability and are a cash basis taxpayer, you

can deduct the tax only in the year you actually

pay it (or transfer money or other property to

provide for satisfaction of the contested liabil-

ity). See Pub. 538 for details.

If you use an accrual method of accounting,

see Pub. 538 for more information.

Income Taxes

This section discusses the deductibility of state

and local income taxes (including employee

502

503

504

514

525

530

Schedule A (Form 1040)

Schedule C (Form 1040)

Schedule E (Form 1040)

Schedule F (Form 1040)

Schedule SE (Form 1040)

1116

contributions to state benefit funds) and foreign

income taxes.

State and Local Income

Taxes

You can deduct state and local income taxes.

Exception. You can’t deduct state and local in-

come taxes you pay on income that is exempt

from federal income tax, unless the exempt in-

come is interest income. For example, you can’t

deduct the part of a state's income tax that is on

a cost-of-living allowance exempt from federal

income tax.

What To Deduct

Your deduction may be for withheld taxes, esti-

mated tax payments, or other tax payments as

follows.

Withheld taxes. You can deduct state and lo-

cal income taxes withheld from your salary in

the year they are withheld. Your Form(s) W-2

will show these amounts. Forms W-2G, 1099-B,

1099-DIV, 1099-G, 1099-K, 1099-MISC,

1099-NEC, 1099-OID, and 1099-R may also

show state and local income taxes withheld.

Estimated tax payments. You can deduct es-

timated tax payments you made during the year

to a state or local government. However, you

must have a reasonable basis for making the

estimated tax payments. Any estimated state or

local tax payments that aren’t made in good

faith at the time of payment aren’t deductible.

Example. You made an estimated state in-

come tax payment. However, the estimate of

your state tax liability shows that you will get a

refund of the full amount of your estimated pay-

ment. You had no reasonable basis to believe

you had any additional liability for state income

taxes and you can’t deduct the estimated tax

payment.

Refund applied to taxes. You can deduct any

part of a refund of prior-year state or local in-

come taxes that you chose to have credited to

your 2023 estimated state or local income

taxes.

Don’t reduce your deduction by either of the

following items.

•

Any state or local income tax refund (or

credit) you expect to receive for 2023.

•

Any refund of (or credit for) prior-year state

and local income taxes you actually re-

ceived in 2023.

However, part or all of this refund (or credit)

may be taxable. See Refund (or credit) of state

or local income taxes, later.

Separate federal returns. If you and your

spouse file separate state, local, and federal in-

come tax returns, each of you can deduct on

your federal return only the amount of your own

state and local income tax that you paid during

the tax year.

Joint state and local returns. If you and

your spouse file joint state and local returns and

separate federal returns, each of you can de-

duct on your separate federal return a part of

the state and local income taxes paid during the

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Publication 17 (2023) Chapter 11 Taxes 97

tax year. You can deduct only the amount of the

total taxes that is proportionate to your gross in-

come compared to the combined gross income

of you and your spouse. However, you can’t de-

duct more than the amount you actually paid

during the year. You can avoid this calculation if

you and your spouse are jointly and individually

liable for the full amount of the state and local

income taxes. If so, you and your spouse can

deduct on your separate federal returns the

amount you each actually paid.

Joint federal return. If you file a joint federal

return, you can deduct the state and local in-

come taxes both of you paid.

Contributions to state benefit funds. As an

employee, you can deduct mandatory contribu-

tions to state benefit funds withheld from your

wages that provide protection against loss of

wages. For example, certain states require em-

ployees to make contributions to state funds

providing disability or unemployment insurance

benefits. Mandatory payments made to the fol-

lowing state benefit funds are deductible as

state income taxes on Schedule A (Form 1040),

line 5a.

•

Alaska Unemployment Compensation

Fund.

•

California Nonoccupational Disability Ben-

efit Fund.

•

New Jersey Nonoccupational Disability

Benefit Fund.

•

New Jersey Unemployment Compensation

Fund.

•

New York Nonoccupational Disability Ben-

efit Fund.

•

Pennsylvania Unemployment Compensa-

tion Fund.

•

Rhode Island Temporary Disability Benefit

Fund.

•

Washington State Supplemental Work-

men's Compensation Fund.

Employee contributions to private or

voluntary disability plans aren’t deduc-

tible.

Refund (or credit) of state or local income

taxes. If you receive a refund of (or credit for)

state or local income taxes in a year after the

year in which you paid them, you may have to

include the refund in income on Schedule 1

(Form 1040), line 1, in the year you receive it.

This includes refunds resulting from taxes that

were overwithheld, applied from a prior-year re-

turn, not figured correctly, or figured again be-

cause of an amended return. If you didn’t item-

ize your deductions in the previous year, don’t

include the refund in income. If you deducted

the taxes in the previous year, include all or part

of the refund on Schedule 1 (Form 1040), line 1,

in the year you receive the refund. For a discus-

sion of how much to include, see Recoveries in

Pub. 525, Taxable and Nontaxable Income, for

more information.

Foreign Income Taxes

Generally, you can take either a deduction or a

credit for income taxes imposed on you by a for-

eign country or a U.S. territory. However, you

CAUTION

can’t take a deduction or credit for foreign in-

come taxes paid on income that is exempt from

U.S. tax under the foreign earned income exclu-

sion or the foreign housing exclusion. For infor-

mation on these exclusions, see Pub. 54, Tax

Guide for U.S. Citizens and Resident Aliens

Abroad. For information on the foreign tax

credit, see Pub. 514.

State and Local

General Sales Taxes

You can elect to deduct state and local general

sales taxes, instead of state and local income

taxes, as an itemized deduction on Schedule A

(Form 1040), line 5a. You can use either your

actual expenses or the state and local sales tax

tables to figure your sales tax deduction.

Actual expenses. Generally, you can deduct

the actual state and local general sales taxes

(including compensating use taxes) if the tax

rate was the same as the general sales tax rate.

Food, clothing, and medical supplies.

Sales taxes on food, clothing, and medical sup-

plies are deductible as a general sales tax even

if the tax rate was less than the general sales

tax rate.

Motor vehicles. Sales taxes on motor vehi-

cles are deductible as a general sales tax even

if the tax rate was less than the general sales

tax rate. However, if you paid sales tax on a mo-

tor vehicle at a rate higher than the general

sales tax, you can deduct only the amount of

the tax that you would have paid at the general

sales tax rate on that vehicle. Include any state

and local general sales taxes paid for a leased

motor vehicle. For purposes of this section, mo-

tor vehicles include cars, motorcycles, motor

homes, recreational vehicles, sport utility vehi-

cles, trucks, vans, and off-road vehicles.

If you use the actual expenses method,

you must have receipts to show the

general sales taxes paid.

Trade or business items. Don't include

sales taxes paid on items used in your trade or

business on Schedule A (Form 1040). Instead,

go to the instructions for the form you are using

to report business income and expenses to see

if you can deduct these taxes.

Optional sales tax tables. Instead of using

your actual expenses, you can figure your state

and local general sales tax deduction using the

state and local sales tax tables in the Instruc-

tions for Schedule A (Form 1040). You may also

be able to add the state and local general sales

taxes paid on certain specified items.

Your applicable table amount is based on

the state where you live, your income, and your

family size. Your income is your adjusted gross

income plus any nontaxable items such as the

following.

•

Tax-exempt interest.

•

Veterans’ benefits.

•

Nontaxable combat pay.

•

Workers’ compensation.

•

Nontaxable part of social security and rail-

road retirement benefits.

CAUTION

•

Nontaxable part of IRA, pension, or annuity

distributions, excluding rollovers.

•

Public assistance payments.

If you lived in different states during the

same tax year, you must prorate your applicable

table amount for each state based on the days

you lived in each state. See the instructions for

Schedule A (Form 1040), line 5a, for details.

State and Local Real

Estate Taxes

Deductible real estate taxes are any state and

local taxes on real property levied for the gen-

eral public welfare. You can deduct these taxes

only if they are assessed uniformly against all

property under the jurisdiction of the taxing au-

thority. The proceeds must be for general com-

munity or governmental purposes and not be a

payment for a special privilege granted or serv-

ice rendered to you.

Deductible real estate taxes generally don’t

include taxes charged for local benefits and im-

provements that increase the value of the prop-

erty. They also don’t include itemized charges

for services (such as trash collection) assessed

against specific property or certain people, even

if the charge is paid to the taxing authority. For

more information about taxes and charges that

aren’t deductible, see Real Estate-Related

Items You Can’t Deduct, later.

Tenant-shareholders in a cooperative hous-

ing corporation. Generally, if you are a ten-

ant-stockholder in a cooperative housing corpo-

ration, you can deduct the amount paid to the

corporation that represents your share of the

real estate taxes the corporation paid or incur-

red for your dwelling unit. The corporation

should provide you with a statement showing

your share of the taxes. For more information,

see Special Rules for Cooperatives in Pub. 530.

Division of real estate taxes between buy-

ers and sellers. If you bought or sold real es-

tate during the year, the real estate taxes must

be divided between the buyer and the seller.

The buyer and the seller must divide the real

estate taxes according to the number of days in

the real property tax year (the period to which

the tax is imposed relates) that each owned the

property. The seller is treated as paying the

taxes up to, but not including, the date of sale.

The buyer is treated as paying the taxes begin-

ning with the date of sale. This applies regard-

less of the lien dates under local law. Generally,

this information is included on the settlement

statement provided at the closing.

If you (the seller) can’t deduct taxes until

they are paid because you use the cash method

of accounting, and the buyer of your property is

personally liable for the tax, you are considered

to have paid your part of the tax at the time of

the sale. This lets you deduct the part of the tax

to the date of sale even though you didn’t ac-

tually pay it. However, you must also include the

amount of that tax in the selling price of the

property. The buyer must include the same

amount in his or her cost of the property.

You figure your deduction for taxes on each

property bought or sold during the real property

tax year as follows.

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98 Chapter 11 Taxes Publication 17 (2023)

Worksheet 11-1. Figuring

Your State and Local Real

Estate Tax Deduction

Keep for Your Records

1. Enter the total state and local real estate

taxes for the real property tax

year ....................

2. Enter the number of days in the real

property tax year that you owned the

property .................

3. Divide line 2 by 365 (for leap years,

divide line 2 by 366) ...........

4. Multiply line 1 by line 3. This is your

deduction. Enter it on Schedule A (Form

1040), line 5b ..............

Note.

Repeat steps 1 through 4 for each property you bought

or sold during the real property tax year. Your total deduction is

the sum of the line 4 amounts for all of the properties.

Real estate taxes for prior years. Don’t di-

vide delinquent taxes between the buyer and

seller if the taxes are for any real property tax

year before the one in which the property is

sold. Even if the buyer agrees to pay the delin-

quent taxes, the buyer can’t deduct them. The

buyer must add them to the cost of the property.

The seller can deduct these taxes paid by the

buyer. However, the seller must include them in

the selling price.

Examples. The following examples illustrate

how real estate taxes are divided between

buyer and seller.

Example 1. Dennis and Beth White's real

property tax year for both their old home and

their new home is the calendar year, with pay-

ment due August 1. The tax on their old home,

sold on May 7, was $620. The tax on their new

home, bought on May 3, was $732. Dennis and

Beth are considered to have paid a proportion-

ate share of the real estate taxes on the old

home even though they didn’t actually pay them

to the taxing authority. On the other hand, they

can claim only a proportionate share of the

taxes they paid on their new property even

though they paid the entire amount.

Dennis and Beth owned their old home dur-

ing the real property tax year for 126 days (Jan-

uary 1 to May 6, the day before the sale). They

figure their deduction for taxes on their old

home as follows.

Worksheet 11-1. Figuring Your

State and Local Real Estate Tax

Deduction — Taxes on Old Home

1. Enter the total state and local real estate

taxes for the real property tax year ...

$620

2. Enter the number of days in the real

property tax year that you owned the

property ................

126

3. Divide line 2 by 365 (for leap years,

divide line 2 by 366) ..........

0.3452

4. Multiply line 1 by line 3. This is your

deduction. Enter it on Schedule A (Form

1040), line 5b .............

$214

Since the buyers of their old home paid all of

the taxes, Dennis and Beth also include the

$214 in the selling price of the old home. (The

buyers add the $214 to their cost of the home.)

Dennis and Beth owned their new home dur-

ing the real property tax year for 243 days (May

3 to December 31, including their date of pur-

chase). They figure their deduction for taxes on

their new home as follows.

Worksheet 11-1. Figuring Your

State and Local Real Estate Tax

Deduction — Taxes on New Home

1. Enter the total state and local real estate

taxes for the real property tax year ...

$732

2. Enter the number of days in the real

property tax year that you owned the

property ................

243

3. Divide line 2 by 365 (for leap years,

divide line 2 by 366) ..........

0.6658

4. Multiply line 1 by line 3. This is your

deduction. Enter it on Schedule A (Form

1040), line 5b .............

$487

Since Dennis and Beth paid all of the taxes on

the new home, they add $245 ($732 paid less

$487 deduction) to their cost of the new home.

(The sellers add this $245 to their selling price

and deduct the $245 as a real estate tax.)

Dennis and Beth's real estate tax deduction

for their old and new homes is the sum of $214

and $487, or $701. They will enter this amount

on Schedule A (Form 1040), line 5b.

Example 2. George and Helen Brown

bought a new home on May 3, 2023. Their real

property tax year for the new home is the calen-

dar year. Real estate taxes for 2022 were as-

sessed in their state on January 1, 2023. The

taxes became due on May 31, 2023, and Octo-

ber 31, 2023.

The Browns agreed to pay all taxes due after

the date of purchase. Real estate taxes for 2022

were $680. They paid $340 on May 31, 2023,

and $340 on October 31, 2023. These taxes

were for the 2022 real property tax year. The

Browns can’t deduct them since they didn’t own

the property until 2023. Instead, they must add

$680 to the cost of their new home.

In January 2024, the Browns receive their

2023 property tax statement for $752, which

they will pay in 2024. The Browns owned their

new home during the 2023 real property tax

year for 243 days (May 3 to December 31).

They will figure their 2024 deduction for taxes

as follows.

Worksheet 11-1. Figuring Your

State and Local Real Estate Tax

Deduction — Taxes on New Home

1. Enter the total state and local real estate

taxes for the real property tax year ...

$752

2. Enter the number of days in the real

property tax year that you owned the

property ................

243

3. Divide line 2 by 365 (for leap years,

divide line 2 by 366) ..........

0.6658

4. Multiply line 1 by line 3. This is your

deduction. Claim it on Schedule A

(Form 1040), line 5b ..........

$501

The remaining $251 ($752 paid less $501 de-

duction) of taxes paid in 2024, along with the

$680 paid in 2023, is added to the cost of their

new home.

Because the taxes up to the date of sale are

considered paid by the seller on the date of

sale, the seller is entitled to a 2023 tax deduc-

tion of $931. This is the sum of the $680 for

2022 and the $251 for the 122 days the seller

owned the home in 2023. The seller must also

include the $931 in the selling price when they

figure the gain or loss on the sale. The seller

should contact the Browns in January 2024 to

find out how much real estate tax is due for

2023.

Form 1099-S. For certain sales or ex-

changes of real estate, the person responsible

for closing the sale (generally, the settlement

agent) prepares Form 1099-S, Proceeds From

Real Estate Transactions, to report certain infor-

mation to the IRS and to the seller of the prop-

erty. Box 2 of Form 1099-S is for the gross pro-

ceeds from the sale and should include the

portion of the seller's real estate tax liability that

the buyer will pay after the date of sale. The

buyer includes these taxes in the cost basis of

the property, and the seller both deducts this

amount as a tax paid and includes it in the sales

price of the property.

For a real estate transaction that involves a

home, any real estate tax the seller paid in ad-

vance but that is the liability of the buyer ap-

pears on Form 1099-S, box 6. The buyer de-

ducts this amount as a real estate tax, and the

seller reduces their real estate tax deduction (or

includes it in income) by the same amount. See

Refund (or rebate), later.

Taxes placed in escrow. If your monthly mort-

gage payment includes an amount placed in es-

crow (put in the care of a third party) for real es-

tate taxes, you may not be able to deduct the

total amount placed in escrow. You can deduct

only the real estate tax that the third party ac-

tually paid to the taxing authority. If the third

party doesn’t notify you of the amount of real

estate tax that was paid for you, contact the

third party or the taxing authority to find the

proper amount to show on your return.

Tenants by the entirety. If you and your

spouse held property as tenants by the entirety

and you file separate federal returns, each of

you can deduct only the taxes each of you paid

on the property.

Divorced individuals. If your divorce or sepa-

ration agreement states that you must pay the

real estate taxes for a home owned by you and

your spouse, part of your payments may be de-

ductible as alimony and part as real estate

taxes. See Payments to a third party in Pub. 504

for more information.

Ministers’ and military housing allowances.

If you are a minister or a member of the uni-

formed services and receive a housing allow-

ance that you can exclude from income, you still

can deduct all of the real estate taxes you pay

on your home.

Refund (or rebate). If you received a refund or

rebate in 2023 of real estate taxes you paid in

2023, you must reduce your deduction by the

amount refunded to you. If you received a re-

fund or rebate in 2023 of real estate taxes you

deducted in an earlier year, you generally must

include the refund or rebate in income in the

year you receive it. However, the amount you in-

clude in income is limited to the amount of the

deduction that reduced your tax in the earlier

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Publication 17 (2023) Chapter 11 Taxes 99

year. For more information, see Recoveries in

Pub. 525.

Real Estate-Related Items

You Can’t Deduct

Payments for the following items generally

aren’t deductible as real estate taxes.

•

Taxes for local benefits.

•

Itemized charges for services (such as

trash and garbage pickup fees).

•

Transfer taxes (or stamp taxes).

•

Rent increases due to higher real estate

taxes.

•

Homeowners' association charges.

Taxes for local benefits. Deductible real es-

tate taxes generally don’t include taxes charged

for local benefits and improvements tending to

increase the value of your property. These in-

clude assessments for streets, sidewalks, water

mains, sewer lines, public parking facilities, and

similar improvements. You should increase the

basis of your property by the amount of the as-

sessment.

Local benefit taxes are deductible only if

they are for maintenance, repair, or interest

charges related to those benefits. If only a part

of the taxes is for maintenance, repair, or inter-

est, you must be able to show the amount of

that part to claim the deduction. If you can’t de-

termine what part of the tax is for maintenance,

repair, or interest, none of it is deductible.

Taxes for local benefits may be inclu-

ded in your real estate tax bill. If your

taxing authority (or mortgage lender)

doesn’t furnish you a copy of your real estate

tax bill, ask for it. You should use the rules

above to determine if the local benefit tax is de-

ductible. Contact the taxing authority if you

need additional information about a specific

charge on your real estate tax bill.

Itemized charges for services. An itemized

charge for services assessed against specific

property or certain people isn’t a tax, even if the

charge is paid to the taxing authority. For exam-

ple, you can’t deduct the charge as a real estate

tax if it is:

•

A unit fee for the delivery of a service (such

as a $5 fee charged for every 1,000 gallons

of water you use),

CAUTION

•

A periodic charge for a residential service

(such as a $20 per month or $240 annual

fee charged to each homeowner for trash

collection), or

•

A flat fee charged for a single service pro-

vided by your government (such as a $30

charge for mowing your lawn because it

was allowed to grow higher than permitted

under your local ordinance).

You must look at your real estate tax bill

to determine if any nondeductible item-

ized charges, such as those listed

above, are included in the bill. If your taxing au-

thority (or mortgage lender) doesn’t furnish you

a copy of your real estate tax bill, ask for it.

Exception. Service charges used to main-

tain or improve services (such as trash collec-

tion or police and fire protection) are deductible

as real estate taxes if:

•

The fees or charges are imposed at a like

rate against all property in the taxing juris-

diction;

•

The funds collected aren’t earmarked; in-

stead, they are commingled with general

revenue funds; and

CAUTION

Table 11-1. Which Taxes Can You Deduct?

Type of Tax You Can Deduct You Can’t Deduct

Fees and Charges Fees and charges that are expenses of your trade or

business or of producing income.

Fees and charges that aren’t expenses of your trade or

business or of producing income, such as fees for

driver's licenses, car inspections, parking, or

charges for water bills (see Taxes and Fees You

Can’t Deduct).

Fines and penalties.

Income Taxes State and local income taxes. Federal income taxes.

Foreign income taxes. Employee contributions to private or voluntary

disability plans.

Employee contributions to state funds listed under

Contributions to state benefit funds.

State and local general sales taxes if you choose to

deduct state and local income taxes.

General Sales Taxes State and local general sales taxes, including

compensating use taxes.

State and local income taxes if you choose to deduct

state and local general sales taxes.

Other Taxes Taxes that are expenses of your trade or business. Federal excise taxes, such as tax on gasoline, that

aren’t expenses of your trade or business or of

producing income.

Taxes on property producing rent or royalty income. Per capita taxes.

One-half of self-employment tax paid.

Personal Property

Taxes

State and local personal property taxes. Customs duties that aren’t expenses of your trade or

business or of producing income.

Real Estate Taxes State and local real estate taxes. Real estate taxes that are treated as imposed on

someone else (see Division of real estate taxes

between buyers and sellers).

Tenant's share of real estate taxes paid by a

cooperative housing corporation.

Foreign real estate taxes.

Taxes for local benefits (with exceptions). See Real

Estate-Related Items You Can’t Deduct.

Trash and garbage pickup fees (with exceptions). See

Real Estate-Related Items You Can’t Deduct.

Rent increase due to higher real estate taxes.

Homeowners' association charges.

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100 Chapter 11 Taxes Publication 17 (2023)

•

Funds used to maintain or improve serv-

ices aren’t limited to or determined by the

amount of these fees or charges collected.

Transfer taxes (or stamp taxes). Transfer

taxes and similar taxes and charges on the sale

of a personal home aren’t deductible. If they are

paid by the seller, they are expenses of the sale

and reduce the amount realized on the sale. If

paid by the buyer, they are included in the cost

basis of the property.

Rent increase due to higher real estate

taxes. If your landlord increases your rent in

the form of a tax surcharge because of in-

creased real estate taxes, you can’t deduct the

increase as taxes.

Homeowners' association charges. These

charges aren’t deductible because they are im-

posed by the homeowners' association, rather

than the state or local government.

Personal Property

Taxes

Personal property tax is deductible if it is a state

or local tax that is:

•

Charged on personal property;

•

Based only on the value of the personal

property; and

•

Charged on a yearly basis, even if it is col-

lected more or less than once a year.

A tax that meets the above requirements

can be considered charged on personal prop-

erty even if it is for the exercise of a privilege.

For example, a yearly tax based on value quali-

fies as a personal property tax even if it is called

a registration fee and is for the privilege of regis-

tering motor vehicles or using them on the high-

ways.

If the tax is partly based on value and partly

based on other criteria, it may qualify in part.

Example. Your state charges a yearly motor

vehicle registration tax of 1% of value plus 50

cents per hundredweight. You paid $32 based

on the value ($1,500) and weight (3,400 lbs.) of

your car. You can deduct $15 (1% × $1,500) as

a personal property tax because it is based on

the value. The remaining $17 ($0.50 × 34),

based on the weight, isn’t deductible.

Taxes and Fees

You Can’t Deduct

Many federal, state, and local government taxes

aren’t deductible because they don’t fall within

the categories discussed earlier. Other taxes

and fees, such as federal income taxes, aren’t

deductible because the tax law specifically pro-

hibits a deduction for them. See Table 11-1.

Taxes and fees that are generally not deduc-

tible include the following items.

•

Employment taxes. This includes social

security, Medicare, and railroad retirement

taxes withheld from your pay. However,

one-half of self-employment tax you pay is

deductible. In addition, the social security

and other employment taxes you pay on

the wages of a household worker may be

included in medical expenses that you can

deduct, or childcare expenses that allow

you to claim the child and dependent care

credit. For more information, see Pub. 502

and Pub. 503.

•

Estate, inheritance, legacy, or succes-

sion taxes. You can deduct the estate tax

attributable to income in respect of a dece-

dent if you, as a beneficiary, must include

that income in your gross income. In that

case, deduct the estate tax on Schedule A

(Form 1040), line 16. For more information,

see Pub. 559.

•

Federal income taxes. This includes in-

come taxes withheld from your pay.

•

Fines and penalties. You can’t deduct

fines and penalties paid to a government

for violation of any law, including related

amounts forfeited as collateral deposits.

•

Foreign personal or real property

taxes.

•

Gift taxes.

•

License fees. You can’t deduct license

fees for personal purposes (such as mar-

riage, driver's, and pet license fees).

•

Per capita taxes. You can’t deduct state

or local per capita taxes.

Many taxes and fees other than those listed

above are also nondeductible, unless they are

ordinary and necessary expenses of a business

or income-producing activity. For other nonde-

ductible items, see Real Estate-Related Items

You Can’t Deduct, earlier.

Where To Deduct

You deduct taxes on the following schedules.

State and local income taxes. These taxes

are deducted on Schedule A (Form 1040),

line 5a, even if your only source of income is

from business, rents, or royalties.

Limitation on deduction for state and lo-

cal taxes. The deduction for state and local

taxes is limited to $10,000 ($5,000 if married fil-

ing married separately). State and local taxes

are the taxes that you include on Schedule A

(Form 1040), lines 5a, 5b, and 5c. Include taxes

imposed by a U.S. territory with your state and

local taxes on Schedule A (Form 1040), lines

5a, 5b, and 5c. However, don't include any U.S.

territory taxes you paid that are allocable to ex-

cluded income.

You may want to take a credit for U.S.

territory tax instead of a deduction. See

the instructions for Schedule 3 (Form

1040), line 1, for details.

General sales taxes. Sales taxes are deduc-

ted on Schedule A (Form 1040), line 5a. You

must check the box on line 5a. If you elect to

deduct sales taxes, you can’t deduct state and

local income taxes on Schedule A (Form 1040),

line 5a.

Foreign income taxes. Generally, income

taxes you pay to a foreign country or U.S. terri-

tory can be claimed as an itemized deduction

on Schedule A (Form 1040), line 6, or as a

TIP

credit against your U.S. income tax on Schedule

3 (Form 1040), line 1. To claim the credit, you

may have to complete and attach Form 1116.

For more information, see the Instructions for

Form 1040 or Pub. 514.

Real estate taxes and personal property

taxes. Real estate and personal property taxes

are deducted on Schedule A (Form 1040), lines

5b and 5c, respectively, unless they are paid on

property used in your business, in which case

they are deducted on Schedule C (Form 1040)

or Schedule F (Form 1040). Taxes on property

that produces rent or royalty income are deduc-

ted on Schedule E (Form 1040).

Self-employment tax. Deduct one-half of your

self-employment tax on Schedule 1 (Form

1040), line 15.

Other taxes. All other deductible taxes are de-

ducted on Schedule A (Form 1040), line 6.

12.

Other Itemized

Deductions

What's New

Standard mileage rate. The 2023 rate for

business use of a vehicle is 65.5 cents a mile.

Reminders

No miscellaneous itemized deductions al-

lowed. You can no longer claim any miscella-

neous itemized deductions. Miscellaneous

itemized deductions are those deductions that

would have been subject to the 2%-of-adjus-

ted-gross-income (AGI) limitation. See Miscella-

neous Itemized Deductions, later.

Fines and penalties. Rules regarding deduct-

ing fines and penalties have changed. See

Fines and Penalties, later.

Introduction

This chapter explains that you can no longer

claim any miscellaneous itemized deductions,

unless you fall into one of the qualified catego-

ries of employment claiming a deduction relat-

ing to unreimbursed employee expenses. Mis-

cellaneous itemized deductions are those

deductions that would have been subject to the

2%-of-AGI limitation. You can still claim certain

expenses as itemized deductions on Sched-

ule A (Form 1040), Schedule A (Form

1040-NR), or as an adjustment to income on

Form 1040 or 1040-SR. This chapter covers the

following topics.

•

Miscellaneous itemized deductions.

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Publication 17 (2023) Chapter 12 Other Itemized Deductions 101

•

Expenses you can't deduct.

•

Expenses you can deduct.

•

How to report your deductions.

You must keep records to verify your

deductions. You should keep receipts,

canceled checks, substitute checks, fi-

nancial account statements, and other docu-

mentary evidence. For more information on re-

cordkeeping, see

What Records Should I

Keep? in chapter 1.

Useful Items

You may want to see:

Publication

463 Travel, Gift, and Car Expenses

525 Taxable and Nontaxable Income

529 Miscellaneous Deductions

547 Casualties, Disasters, and Thefts

575 Pension and Annuity Income

587 Business Use of Your Home

946 How To Depreciate Property

Form (and Instructions)

Schedule A (Form 1040) Itemized

Deductions

2106 Employee Business Expenses

8839 Qualified Adoption Expenses

Schedule K-1 (Form 1041) Beneficiary's

Share of Income, Deductions,

Credits, etc.

For these and other useful items, go to IRS.gov/

Forms.

Miscellaneous

Itemized Deductions

You can no longer claim any miscellaneous

itemized deductions that are subject to the

2%-of-AGI limitation, including unreimbursed

employee expenses. However, you may be able

to deduct certain unreimbursed employee busi-

ness expenses if you fall into one of the follow-

ing categories of employment listed under Un-

reimbursed Employee Expenses next.

Unreimbursed Employee

Expenses

You can no longer claim a deduction for unreim-

bursed employee expenses unless you fall into

one of the following categories of employment.

•

Armed Forces reservists.

•

Qualified performing artists.

•

Fee-basis state or local government offi-

cials.

•

Employees with impairment-related work

expenses.

Categories of Employment

You can deduct unreimbursed employee expen-

ses only if you qualify as an Armed Forces re-

servist, a qualified performing artist, a fee-basis

RECORDS

463

525

529

547

575

587

946

Schedule A (Form 1040)

2106

8839

Schedule K-1 (Form 1041)

state or local government official, or an em-

ployee with impairment-related work expenses.

Armed Forces reservist (member of a re-

serve component). You are a member of a

reserve component of the Armed Forces of the

United States if you are in the Army, Navy, Ma-

rine Corps, Air Force, or Coast Guard Reserve;

the Army National Guard of the United States;

or the Reserve Corps of the Public Health Serv-

ice.

Qualified performing artist. You are a

qualified performing artist if you:

1. Performed services in the performing arts

as an employee for at least two employers

during the tax year,

2. Received from at least two of the employ-

ers wages of $200 or more per employer,

3. Had allowable business expenses attribut-

able to the performing arts of more than

10% of gross income from the performing

arts, and

4. Had AGI of $16,000 or less before deduct-

ing expenses as a performing artist.

Fee-basis state or local government offi-

cial. You are a qualifying fee-basis official if

you are employed by a state or political subdivi-

sion of a state and are compensated, in whole

or in part, on a fee basis.

Employee with impairment-related work

expenses. Impairment-related work expenses

are the allowable expenses of an individual with

physical or mental disabilities for attendant care

at their place of employment. They also include

other expenses in connection with the place of

employment that enable the employee to work.

See Pub. 463, Travel, Gift, and Car Expenses,

for more details.

Allowable unreimbursed employee expen-

ses. If you qualify as an employee in one of

the categories mentioned above, you may be

able to deduct the following items as unreim-

bursed employee expenses.

Unreimbursed employee expenses for indi-

viduals in these categories of employment are

deducted as adjustments to gross income.

Qualified employees listed in one of the catego-

ries above must complete Form 2106, Em-

ployee Business Expenses, to take the deduc-

tion.

You can deduct only unreimbursed em-

ployee expenses that are paid or incurred dur-

ing your tax year, for carrying on your trade or

business of being an employee, and ordinary

and necessary.

An expense is ordinary if it's common and

accepted in your trade, business, or profession.

An expense is necessary if it's appropriate and

helpful to your business. An expense doesn't

have to be required to be considered neces-

sary.

Educator Expenses

If you were an eligible educator in 2023, you

can deduct up to $300 of qualified expenses

you paid in 2023 as an adjustment to gross in-

come on Schedule 1 (Form 1040), line 11,

rather than as a miscellaneous itemized

deduction. If you and your spouse are filing

jointly and both of you were eligible educators,

the maximum deduction is $600. However, nei-

ther spouse can deduct more than $300 of their

qualified expenses. For additional information,

see Educator Expenses in Pub. 529, Miscella-

neous Deductions.

Educator expenses include amounts

paid or incurred after March 12, 2020,

for personal protective equipment, dis-

infectant, and other supplies used for the pre-

vention of the spread of coronavirus. For more

information, see the instructions for Schedule 1

(Form 1040), line 11, and Educator Expenses in

Pub. 529, Miscellaneous Deductions.

Expenses You Can’t

Deduct

Because of the suspension of miscellaneous

itemized deductions, there are two categories of

expenses you can't deduct: miscellaneous item-

ized deductions subject to the 2%-of-AGI limita-

tion, and those expenses that are traditionally

nondeductible under the Internal Revenue

Code. Both categories of deduction are dis-

cussed next.

Miscellaneous Deductions Subject

to 2% AGI

Unless you fall into one of the qualified catego-

ries of employment under Unreimbursed Em-

ployee Expenses, earlier, miscellaneous item-

ized deductions that are subject to the

2%-of-AGI limitation can no longer be claimed.

For expenses not related to unreimbursed em-

ployee expenses, you generally can't deduct the

following expenses, even if you fall into one of

the qualified categories of employment listed

earlier.

Appraisal Fees

Appraisal fees you pay to figure a casualty loss

or the fair market value of donated property are

miscellaneous itemized deductions and can no

longer be deducted.

Casualty and Theft Losses

Damaged or stolen property used in performing

services as an employee is a miscellaneous de-

duction and can no longer be deducted. For

other casualty and theft losses, see Pub. 547,

Casualties, Disasters, and Thefts.

Clerical Help and Office Rent

Office expenses, such as rent and clerical help,

you pay in connection with your investments

and collecting taxable income on those invest-

ments are miscellaneous itemized deductions

and are no longer deductible.

Credit or Debit Card Convenience

Fees

The convenience fee charged by the card pro-

cessor for paying your income tax (including es-

timated tax payments) by credit or debit card is

a miscellaneous itemized deduction and is no

longer deductible.

TIP

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102 Chapter 12 Other Itemized Deductions Publication 17 (2023)

Depreciation on Home Computer

If you use your home computer to produce in-

come (for example, to manage your investments

that produce taxable income), the depreciation

of the computer for that part of the usage of the

computer is a miscellaneous itemized deduc-

tion and is no longer deductible.

Fees To Collect Interest and

Dividends

Fees you pay to a broker, bank, trustee, or simi-

lar agent to collect your taxable bond interest or

dividends on shares of stock are miscellaneous

itemized deductions and can no longer be de-

ducted.

Hobby Expenses

A hobby isn't a business because it isn't carried

on to make a profit. Hobby expenses are mis-

cellaneous itemized deductions and can no lon-

ger be deducted.

Indirect Deductions of

Pass-Through Entities

Pass-through entities include partnerships, S

corporations, and mutual funds that aren't pub-

licly offered. Deductions of pass-through enti-

ties are passed through to the partners or

shareholders. The partner’s or shareholder’s

share of passed-through deductions for invest-

ment expenses are miscellaneous itemized de-

ductions and can no longer be deducted.

Nonpublicly offered mutual funds. These

funds will send you a Form 1099-DIV, Dividends

and Distributions, or a substitute form, showing

your share of gross income and investment ex-

penses. The investment expenses reported on

Form 1099-DIV are a miscellaneous itemized

deduction and are no longer deductible.

Investment Fees and Expenses

Investment fees, custodial fees, trust adminis-

tration fees, and other expenses you paid for

managing your investments that produce taxa-

ble income are miscellaneous itemized deduc-

tions and are no longer deductible.

Legal Expenses

You can usually deduct legal expenses that you

incur in attempting to produce or collect taxable

income or that you pay in connection with the

determination, collection, or refund of any tax.

Legal expenses that you incur in attempting

to produce or collect taxable income, or that you

pay in connection with the determination, col-

lection, or refund of any tax are miscellaneous

itemized deductions and are no longer deducti-

ble.

You can deduct expenses of resolving tax is-

sues relating to profit or loss from business re-

ported on Schedule C (Form 1040), Profit or

Loss From Business, from rentals or royalties

reported on Schedule E (Form 1040), Supple-

mental Income and Loss, or from farm income

and expenses reported on Schedule F (Form

1040), Profit or Loss From Farming, on that

schedule. Expenses for resolving nonbusiness

tax issues are miscellaneous itemized deduc-

tions and are no longer deductible.

Loss on Deposits

For information on whether, and if so, how, you

may deduct a loss on your deposit in a qualified

financial institution, see Loss on Deposits in

Pub. 547.

Repayments of Income

Generally, repayments of amounts that you in-

cluded in income in an earlier year is a miscella-

neous itemized deduction and can no longer be

deducted. If you had to repay more than $3,000

that you included in your income in an earlier

year, you may be able to deduct the amount.

See Repayments Under Claim of Right, later.

Repayments of Social Security

Benefits

For information on how to deduct your repay-

ments of certain social security benefits, see

Repayments More Than Gross Benefits in

chapter 7.

Safe Deposit Box Rent

Rent you pay for a safe deposit box you use to

store taxable income-producing stocks, bonds,

or investment-related papers is a miscellaneous

itemized deduction and can no longer be de-

ducted. You also can't deduct the rent if you use

the box for jewelry, other personal items, or

tax-exempt securities.

Service Charges on Dividend

Reinvestment Plans

Service charges you pay as a subscriber in a

dividend reinvestment plan are a miscellaneous

itemized deduction and can no longer be de-

ducted. These service charges include pay-

ments for:

•

Holding shares acquired through a plan,

•

Collecting and reinvesting cash dividends,

and

•

Keeping individual records and providing

detailed statements of accounts.

Tax Preparation Fees

Tax preparation fees on the return for the year in

which you pay them are a miscellaneous item-

ized deduction and can no longer be deducted.

These fees include the cost of tax preparation

software programs and tax publications. They

also include any fee you paid for electronic filing

of your return.

Trustee's Administrative Fees for

IRA

Trustee's administrative fees that are billed sep-

arately and paid by you in connection with your

IRA are a miscellaneous itemized deduction

and can no longer be deducted. For more infor-

mation about IRAs, see chapter 9.

Nondeductible

Expenses

In addition to the miscellaneous itemized de-

ductions discussed earlier, you can't deduct the

following expenses.

List of Nondeductible

Expenses

•

Adoption expenses.

•

Broker's commissions.

•

Burial or funeral expenses, including the

cost of a cemetery lot.

•

Campaign expenses.

•

Capital expenses.

•

Check-writing fees.

•

Club dues.

•

Commuting expenses.

•

Fees and licenses, such as car licenses,

marriage licenses, and dog tags.

•

Fines or penalties.

•

Health spa expenses.

•

Hobby losses, but see Hobby Expenses,

earlier.

•

Home repairs, insurance, and rent.

•

Home security system.

•

Illegal bribes and kickbacks.

•

Investment-related seminars.

•

Life insurance premiums paid by the in-

sured.

•

Lobbying expenses.

•

Losses from the sale of your home, furni-

ture, personal car, etc.

•

Lost or misplaced cash or property.

•

Lunches with co-workers.

•

Meals while working late.

•

Medical expenses as business expenses

other than medical examinations required

by your employer.

•

Personal disability insurance premiums.

•

Personal legal expenses.

•

Personal, living, or family expenses.

•

Political contributions.

•

Professional accreditation fees.

•

Professional reputation improvement ex-

pense.

•

Relief fund contributions.

•

Residential telephone line.

•

Stockholders’ meeting attendance expen-

ses.

•

Tax-exempt income earning/collecting ex-

penses.

•

The value of wages never received or lost

vacation time.

•

Travel expenses for another individual.

•

Voluntary unemployment benefit fund con-

tributions.

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Publication 17 (2023) Chapter 12 Other Itemized Deductions 103

•

Wristwatches.

Adoption Expenses

You can't deduct the expenses of adopting a

child, but you may be able to take a credit for

those expenses. See the Instructions for Form

8839, Qualified Adoption Expenses, for more

information.

Campaign Expenses

You can't deduct campaign expenses of a can-

didate for any office, even if the candidate is

running for reelection to the office. These in-

clude qualification and registration fees for pri-

mary elections.

Legal fees. You can't deduct legal fees paid

to defend charges that arise from participation

in a political campaign.

Check-Writing Fees on Personal

Account

If you have a personal checking account, you

can't deduct fees charged by the bank for the

privilege of writing checks, even if the account

pays interest.

Club Dues

Generally, you can't deduct the cost of member-

ship in any club organized for business, pleas-

ure, recreation, or other social purpose. This in-

cludes business, social, athletic, luncheon,

sporting, airline, hotel, golf, and country clubs.

You can't deduct dues paid to an organiza-

tion if one of its main purposes is to:

•

Conduct entertainment activities for mem-

bers or their guests, or

•

Provide members or their guests with ac-

cess to entertainment facilities.

Dues paid to airline, hotel, and luncheon

clubs aren't deductible.

Commuting Expenses

You can't deduct commuting expenses (the cost

of transportation between your home and your

main or regular place of work). If you haul tools,

instruments, or other items in your car to and

from work, you can deduct only the additional

cost of hauling the items such as the rent on a

trailer to carry the items.

Fines and Penalties

Generally, no deduction is allowed for fines and

penalties paid to a government or specified

nongovernmental entity for the violation of any

law except in the following situations.

•

Amounts that constitute restitution.

•

Amounts paid to come into compliance

with the law.

•

Amounts paid or incurred as the result of

certain court orders in which no govern-

ment or specified nongovernmental

agency is a party.

•

Amounts paid or incurred for taxes due.

Nondeductible amounts include an amount

paid in settlement of your actual or potential lia-

bility for a fine or penalty (civil or criminal). Fines

or penalties include amounts paid such as park-

ing tickets, tax penalties, and penalties deduc-

ted from teachers' paychecks after an illegal

strike.

No deduction is allowed for the restitution

amount or amount paid to come into compli-

ance with the law unless the amounts are spe-

cifically identified in the settlement agreement

or court order. Also, any amount paid or incur-

red as reimbursement to the government for the

costs of any investigation or litigation are not eli-

gible for the exceptions and are nondeductible.

Health Spa Expenses

You can't deduct health spa expenses, even if

there is a job requirement to stay in excellent

physical condition, such as might be required of

a law enforcement officer.

Home Security System

You can't deduct the cost of a home security

system as a miscellaneous deduction. How-

ever, you may be able to claim a deduction for a

home security system as a business expense if

you have a home office. See Security system

under Figuring the Deduction in Pub. 587.

Investment-Related Seminars

You can't deduct any expenses for attending a

convention, seminar, or similar meeting for in-

vestment purposes.

Life Insurance Premiums

You can't deduct premiums you pay on your life

insurance. You may be able to deduct, as ali-

mony, premiums you pay on life insurance poli-

cies assigned to your former spouse. See Pub.

504, Divorced or Separated Individuals, for in-

formation on alimony.

Lobbying Expenses

You generally can't deduct amounts paid or in-

curred for lobbying expenses. These include ex-

penses to:

•

Influence legislation;

•

Participate or intervene in any political

campaign for, or against, any candidate for

public office;

•

Attempt to influence the general public, or

segments of the public, about elections,

legislative matters, or referendums; or

•

Communicate directly with covered execu-

tive branch officials in any attempt to influ-

ence the official actions or positions of

those officials.

Lobbying expenses also include any amounts

paid or incurred for research, preparation, plan-

ning, or coordination of any of these activities.

Dues used for lobbying. If a tax-exempt

organization notifies you that part of the dues or

other amounts you pay to the organization are

used to pay nondeductible lobbying expenses,

you can't deduct that part. See Lobbying Ex-

penses in Pub. 529 for information on excep-

tions.

Lost or Mislaid Cash or Property

You can't deduct a loss based on the mere dis-

appearance of money or property. However, an

accidental loss or disappearance of property

can qualify as a casualty if it results from an

identifiable event that is sudden, unexpected, or

unusual. See Pub. 547 for more information.

Lunches With Co-Workers

You can't deduct the expenses of lunches with

co-workers, except while traveling away from

home on business. See Pub. 463 for information

on deductible expenses while traveling away

from home.

Meals While Working Late

You can't deduct the cost of meals while work-

ing late. However, you may be able to claim a

deduction if the cost of meals is a deductible

entertainment expense, or if you're traveling

away from home. See Pub. 463 for information

on deductible entertainment expenses and ex-

penses while traveling away from home.

Personal Legal Expenses

You can't deduct personal legal expenses such

as those for the following.

•

Custody of children.

•

Breach of promise to marry suit.

•

Civil or criminal charges resulting from a

personal relationship.

•

Damages for personal injury, except for

certain unlawful discrimination and whis-

tle-blower claims.

•

Preparation of a title (or defense or perfec-

tion of a title).

•

Preparation of a will.

•

Property claims or property settlement in a

divorce.

You can't deduct these expenses even if a

result of the legal proceeding is the loss of in-

come-producing property.

Political Contributions

You can't deduct contributions made to a politi-

cal candidate, a campaign committee, or a

newsletter fund. Advertisements in convention

bulletins and admissions to dinners or programs

that benefit a political party or political candi-

date aren't deductible.

Professional Accreditation Fees

You can't deduct professional accreditation fees

such as the following.

•

Accounting certificate fees paid for the ini-

tial right to practice accounting.

•

Bar exam fees and incidental expenses in

securing initial admission to the bar.

•

Medical and dental license fees paid to get

initial licensing.

Professional Reputation

You can't deduct expenses of radio and TV ap-

pearances to increase your personal prestige or

establish your professional reputation.

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104 Chapter 12 Other Itemized Deductions Publication 17 (2023)

Relief Fund Contributions

You can't deduct contributions paid to a private

plan that pays benefits to any covered em-

ployee who can't work because of any injury or

illness not related to the job.

Residential Telephone Service

You can't deduct any charge (including taxes)

for basic local telephone service for the first tel-

ephone line to your residence, even if it's used

in a trade or business.

Stockholders' Meetings

You can't deduct transportation and other ex-

penses you pay to attend stockholders' meet-

ings of companies in which you own stock but

have no other interest. You can't deduct these

expenses even if you're attending the meeting

to get information that would be useful in mak-

ing further investments.

Tax-Exempt Income Expenses

You can't deduct expenses to produce tax-ex-

empt income. You can't deduct interest on a

debt incurred or continued to buy or carry

tax-exempt securities.

If you have expenses to produce both taxa-

ble and tax-exempt income, but you can't iden-

tify the expenses that produce each type of in-

come, you must divide the expenses based on

the amount of each type of income to determine

the amount that you can deduct.

Travel Expenses for Another

Individual

You generally can't deduct travel expenses you

pay or incur for a spouse, dependent, or other

individual who accompanies you (or your em-

ployee) on business or personal travel unless

the spouse, dependent, or other individual is an

employee of the taxpayer, the travel is for a

bona fide business purpose, and such expen-

ses would otherwise be deductible by the

spouse, dependent, or other individual. See

Pub. 463 for more information on deductible

travel expenses.

Voluntary Unemployment

Benefit Fund Contributions

You can't deduct voluntary unemployment ben-

efit fund contributions you make to a union fund

or a private fund. However, you can deduct con-

tributions as taxes if state law requires you to

make them to a state unemployment fund that

covers you for the loss of wages from unem-

ployment caused by business conditions.

Wristwatches

You can't deduct the cost of a wristwatch, even

if there is a job requirement that you know the

correct time to properly perform your duties.

Expenses You Can

Deduct

You can deduct the items listed below as item-

ized deductions. Report these items on Sched-

ule A (Form 1040), line 16, or Schedule A (Form

1040-NR), line 7.

List of Deductions

Each of the following items is discussed in de-

tail after the list (except where indicated).

•

Amortizable premium on taxable bonds.

•

Casualty and theft losses from income-

producing property.

•

Excess deductions of an estate or trust.

•

Federal estate tax on income in respect of

a decedent.

•

Gambling losses up to the amount of gam-

bling winnings.

•

Impairment-related work expenses of per-

sons with disabilities.

•

Losses from Ponzi-type investment

schemes (see Pub. 547 for more informa-

tion).

•

Repayments of more than $3,000 under a

claim of right.

•

Unlawful discrimination claims.

•

Unrecovered investment in an annuity.

Amortizable Premium on Taxable

Bonds

In general, if the amount you pay for a bond is

greater than its stated principal amount, the ex-

cess is bond premium. You can elect to amor-

tize the premium on taxable bonds. The amorti-

zation of the premium is generally an offset to

interest income on the bond rather than a sepa-

rate deduction item.

Part of the premium on some bonds may be

an itemized deduction on Schedule A (Form

1040). For more information, see Amortizable

Premium on Taxable Bonds in Pub. 529, and

Bond Premium Amortization in chapter 3 of

Pub. 550, Investment Income and Expenses.

Casualty and Theft Losses of

Income-Producing Property

You can deduct a casualty or theft loss as an

itemized deduction on Schedule A (Form 1040),

line 16, if the damaged or stolen property was

income-producing property (property held for

investment, such as stocks, notes, bonds, gold,

silver, vacant lots, and works of art). First, report

the loss in Form 4684, Section B. You may also

have to include the loss on Form 4797 if you're

otherwise required to file that form. To figure

your deduction, add all casualty or theft losses

from this type of property included on Form

4684, lines 32 and 38b, or Form 4797, line 18a.

For more information on casualty and theft los-

ses, see Pub. 547.

Excess Deductions of an Estate or

Trust

Generally, if an estate or trust has an excess de-

duction resulting from total deductions being

greater than its gross income, in the estate’s or

trust's last tax year, a beneficiary can deduct the

excess deductions, depending on its character.

The excess deductions retain their character as

an adjustment to arrive at adjusted gross in-

come on Schedule 1 (Form 1040), as a

non-miscellaneous itemized deduction reported

on Schedule A (Form 1040), or as a miscellane-

ous itemized deduction. For more information

on excess deductions of an estate or trust, see

the Instructions for Schedule K-1 (Form 1041)

for a Beneficiary Filing Form 1040.

Federal Estate Tax on Income in

Respect of a Decedent

You can deduct the federal estate tax attributa-

ble to income in respect of a decedent that you

as a beneficiary include in your gross income.

Income in respect of the decedent is gross in-

come that the decedent would have received

had death not occurred and that wasn't properly

includible in the decedent's final income tax re-

turn. See Pub. 559, Survivors, Executors, and

Administrators, for more information.

Gambling Losses up to the

Amount of Gambling Winnings

You must report the full amount of your gam-

bling winnings for the year on Schedule 1 (Form

1040), line 8b. You deduct your gambling losses

for the year on Schedule A (Form 1040), line 16.

You can't deduct gambling losses that are more

than your winnings.

You can't reduce your gambling win-

nings by your gambling losses and re-

port the difference. You must report the

full amount of your winnings as income and

claim your losses (up to the amount of win-

nings) as an itemized deduction. Therefore,

your records should show your winnings sepa-

rately from your losses.

Diary of winnings and losses. You

must keep an accurate diary or similar

record of your losses and winnings.

Your diary should contain at least the following

information.

•

The date and type of your specific wager or

wagering activity.

•

The name and address or location of the

gambling establishment.

•

The names of other persons present with

you at the gambling establishment.

•

The amount(s) you won or lost.

See Pub. 529 for more information.

Impairment-Related Work

Expenses

If you have a physical or mental disability that

limits your being employed, or substantially lim-

its one or more of your major life activities, such

as performing manual tasks, walking, speaking,

breathing, learning, and working, you can

deduct your impairment-related work expenses.

CAUTION

RECORDS

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Publication 17 (2023) Chapter 12 Other Itemized Deductions 105

Impairment-related work expenses are ordi-

nary and necessary business expenses for at-

tendant care services at your place of work and

for other expenses in connection with your

place of work that are necessary for you to be

able to work.

Self-employed. If you're self-employed, en-

ter your impairment-related work expenses on

the appropriate form (Schedule C (Form 1040),

Schedule E (Form 1040), or Schedule F (Form

1040)) used to report your business income and

expenses.

Repayments Under Claim of Right

If you had to repay more than $3,000 that you

included in your income in an earlier year be-

cause at the time you thought you had an unre-

stricted right to it, you may be able to deduct the

amount you repaid or take a credit against your

tax. See Repayments in chapter 8 for more in-

formation.

Unlawful Discrimination Claims

You may be able to deduct, as an adjustment to

income on Schedule 1 (Form 1040), line 24h,

attorney fees and court costs for actions settled

or decided after October 22, 2004, involving a

claim of unlawful discrimination, a claim against

the U.S. Government, or a claim made under

section 1862(b)(3)(A) of the Social Security Act.

However, the amount you can deduct on

Schedule 1 (Form 1040), line 24h, is limited to

the amount of the judgment or settlement you

are including in income for the tax year. See

Pub. 525, Taxable and Nontaxable Income, for

more information.

Unrecovered Investment in

Annuity

A retiree who contributed to the cost of an annu-

ity can exclude from income a part of each pay-

ment received as a tax-free return of the retir-

ee's investment. If the retiree dies before the

entire investment is recovered tax free, any un-

recovered investment can be deducted on the

retiree's final income tax return. See Pub. 575,

Pension and Annuity Income, for more informa-

tion about the tax treatment of pensions and an-

nuities.

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106 Chapter 12 Other Itemized Deductions Publication 17 (2023)

Part Four.

Figuring Your

Taxes, and

Refundable and

Nonrefundable

Credits

The two chapters in this part explain how to figure your tax. They also

discuss tax credits that, unlike deductions, are subtracted directly from your

tax and reduce your tax dollar for dollar.

The Form 1040 and Form 1040-SR schedules that are discussed in these

chapters are:

•

Schedule 1, Additional Income and Adjustments to Income;

•

Schedule 2, Additional Taxes; and

•

Schedule 3, Additional Credits and Payments.

13.

How To Figure

Your Tax

Introduction

After you have figured your income and deduc-

tions, your next step is to figure your tax. This

chapter discusses:

•

The general steps you take to figure your

tax,

•

An additional tax you may have to pay

called the alternative minimum tax (AMT),

and

•

The conditions you must meet if you want

the IRS to figure your tax.

Useful Items

You may want to see:

Publication

503 Child and Dependent Care Expenses

505 Tax Withholding and Estimated Tax

524 Credit for the Elderly or the Disabled

525 Taxable and Nontaxable Income

531 Reporting Tip Income

550 Investment Income and Expenses

560 Retirement Plans for Small Business

(SEP, SIMPLE, and Qualified Plans)

575 Pension and Annuity Income

596 Earned Income Credit (EIC)

926 Household Employer’s Tax Guide

969 Health Savings Accounts and Other

Tax-Favored Health Plans

970 Tax Benefits for Education

974 Premium Tax Credit (PTC)

503

505

524

525

531

550

560

575

596

926

969

970

974

Form (and Instructions)

W-2 Wage and Tax Statement

Schedule SE (Form 1040)

Self-Employment Tax

Schedule 8812 (Form 1040) Credits for

Qualifying Children and Other

Dependents

1116 Foreign Tax Credit

3800 General Business Credit

4136 Credit for Federal Tax Paid on Fuels

4970 Tax on Accumulation Distribution of

Trusts

5329 Additional Taxes on Qualified Plans

(Including IRAs) and Other

Tax-Favored Accounts

5405 Repayment of the First-Time

Homebuyer Credit

5695 Residential Energy Credits

5884 Work Opportunity Credit

8396 Mortgage Interest Credit

8801 Credit for Prior Year Minimum

Tax—Individuals, Estates, and Trusts

8835 Renewable Electricity Production

Credit

8839 Qualified Adoption Expenses

8846 Credit for Employer Social Security

and Medicare Taxes Paid on Certain

Employee Tips

8853 Archer MSAs and Long-Term Care

Insurance Contracts

8880 Credit for Qualified Retirement

Savings Contributions

8889 Health Savings Accounts (HSAs)

8910 Alternative Motor Vehicle Credit

8912 Credit to Holders of Tax Credit

Bonds

8936 Clean Vehicle Credits

8959 Additional Medicare Tax

8960 Net Investment Income

Tax—Individuals, Estates, and Trusts

8962 Premium Tax Credit (PTC)

W-2

Schedule SE (Form 1040)

Schedule 8812 (Form 1040)

1116

3800

4136

4970

5329

5405

5695

5884

8396

8801

8835

8839

8846

8853

8880

8889

8910

8912

8936

8959

8960

8962

Figuring Your Tax

Your income tax is based on your taxable in-

come. After you figure your income tax and

AMT, if any, subtract your tax credits and add

any other taxes you may owe. The result is your

total tax. Compare your total tax with your total

payments to determine whether you are entitled

to a refund or must make a payment.

This section provides a general outline of

how to figure your tax. You can find step-by-step

directions in the Instructions for Form 1040.

Tax. Most taxpayers use either the Tax Table or

the Tax Computation Worksheet to figure their

income tax. However, there are special meth-

ods if your income includes any of the following

items.

•

A net capital gain. See Pub. 550.

•

Qualified dividends taxed at the same

rates as a net capital gain. See Pub. 550.

•

Lump-sum distributions. See Pub. 575.

•

Farming or fishing income. See Schedule J

(Form 1040).

•

Tax for certain children who have unearned

income. See Form 8615.

•

Parent's election to report child's interest

and dividends. See Form 8814.

•

Foreign earned income exclusion or the

housing exclusion. (See Form 2555, For-

eign Earned Income, and the Foreign

Earned Income Tax Worksheet in the In-

structions for Form 1040.)

Credits. After you figure your income tax and

any AMT (discussed later), determine if you are

eligible for any tax credits. Eligibility information

for these tax credits is discussed in other publi-

cations and your form instructions. The follow-

ing items are some of the credits you may be

able to subtract from your tax and shows where

you can find more information on each credit.

•

Adoption credit. See Form 8839.

•

Alternative motor vehicle credit. See Form

8910.

•

Child and dependent care credit. See Pub.

503.

•

Child tax credit. See Schedule 8812 (Form

1040).

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Publication 17 (2023) Chapter 13 How To Figure Your Tax 107

•

Credit for employer social security and

Medicare taxes paid on certain employee

tips. See Form 8846.

•

Credit to holders of tax credit bonds. See

Form 8912.

•

Education credit. See Pub. 970.

•

Elderly or disabled credit. See Pub. 524.

•

Foreign tax credit. See Form 1116.

•

General business credit. See Form 3800.

•

Mortgage interest credit. See Form 8396.

•

Clean vehicle credits. See Form 8936.

•

Premium tax credit. See Pub. 974.

•

Prior year minimum tax credit. See Form

8801.

•

Renewable electricity production credit.

See Form 8835.

•

Residential clean energy credit. See Form

5695.

•

Retirement savings contribution credit. See

Form 8880.

•

Work opportunity credit. See Form 5884.

Some credits (such as the earned income

credit) aren’t listed because they are treated as

payments. See Payments, later.

Other taxes. After you subtract your tax cred-

its, determine whether there are any other taxes

you must pay. This chapter doesn’t explain

these other taxes. You can find that information

in other publications and your form instructions.

See the following list for other taxes you may

need to add to your income tax.

•

Additional Medicare tax. See Form 8959.

•

Additional tax on ABLE accounts. See

Pub. 969.

•

Additional tax on Archer MSAs and

long-term care insurance contracts. See

Form 8853.

•

Additional tax on Coverdell ESAs. See

Form 5329.

•

Additional tax on HSAs. See Form 8889.

•

Additional tax on income you received from

a nonqualified deferred compensation plan

that fails to meet certain requirements. See

the Instructions for Form 1040.

•

Additional tax on qualified plans and other

tax-favored accounts. See Form 5329.

•

Additional tax on qualified retirement plans

and IRAs. See Form 5329.

•

Additional tax on qualified tuition pro-

grams. See Pub. 970.

•

Excise tax on insider stock compensation

from an expatriated corporation. See the

Instructions for Form 1040.

•

Household employment taxes. See Pub.

926.

•

Interest on the deferred tax on gain from

certain installment sales with a sales price

over $150,000. See the Instructions for

Form 1040.

•

Interest on the tax due on installment in-

come from the sale of certain residential

lots and timeshares. See the Instructions

for Form 1040.

•

Net investment income tax. See Form

8960.

•

Recapture of an education credit. See Pub.

970.

•

Recapture of other credits. See the Instruc-

tions for Form 1040.

•

Repayment of first-time homebuyer credit.

See Form 5405.

•

Section 72(m)(5) excess benefits tax. See

Pub. 560.

•

Self-employment tax. See Schedule SE

(Form 1040).

•

Social security and Medicare tax on tips.

See Pub. 531.

•

Social security and Medicare tax on wa-

ges. See Pub. 525.

•

Tax on accumulation distribution of trusts.

See Form 4970.

•

Tax on golden parachute payments. See

the Instructions for Form 1040.

•

Uncollected social security and Medicare

tax on group-term life insurance. See Form

W-2.

•

Uncollected social security and Medicare

tax on tips. See Pub. 531.

You may also have to pay AMT (discussed

later in this chapter).

Payments. After you determine your total tax,

figure the total payments you have already

made for the year. Include credits that are trea-

ted as payments. This chapter doesn’t explain

these payments and credits. You can find that

information in other publications and your form

instructions. See the following list of payments

and credits that you may be able to include in

your total payments.

•

American opportunity credit. See Pub. 970.

•

Additional child tax credit. See Schedule

8812 (Form 1040).

•

Credit for federal tax on fuels. See Form

4136.

•

Credit for tax on undistributed capital gain.

See the Instructions for Form 1040.

•

Earned income credit. See Pub. 596.

•

Estimated tax paid. See Pub. 505.

•

Excess social security and RRTA tax with-

held. See the Instructions for Form 1040.

•

Federal income tax withheld. See Pub.

505.

•

Net premium tax credit. See the Instruc-

tions for Form 8962 or the Instructions for

Form 1040.

•

Qualified sick and family leave credits. See

the Instructions for Form 1040.

•

Tax paid with extension. See the Instruc-

tions for Form 1040.

Refund or balance due. To determine

whether you are entitled to a refund or whether

you must make a payment, compare your total

payments with your total tax. If you are entitled

to a refund, see your form instructions for infor-

mation on having it directly deposited into one

or more of your accounts (including a traditional

IRA, Roth IRA, or a SEP-IRA), or to purchase

U.S. savings bonds instead of receiving a paper

check.

Alternative

Minimum Tax (AMT)

This section briefly discusses an additional tax

you may have to pay.

The tax law gives special treatment to some

kinds of income and allows special deductions

and credits for some kinds of expenses. Tax-

payers who benefit from this special treatment

may have to pay at least a minimum amount of

tax through an additional tax called AMT.

You may have to pay the AMT if your taxable

income for regular tax purposes, combined with

certain adjustments and tax preference items, is

more than a certain amount. See Form 6251,

Alternative Minimum Tax—Individuals.

Adjustments and tax preference items. The

more common adjustments and tax preference

items include:

•

Addition of the standard deduction (if

claimed);

•

Addition of itemized deductions claimed for

state and local taxes and certain interest;

•

Subtraction of any refund of state and local

taxes included in gross income;

•

Changes to accelerated depreciation of

certain property;

•

Difference between gain or loss on the sale

of property reported for regular tax purpo-

ses and AMT purposes;

•

Addition of certain income from incentive

stock options;

•

Change in certain passive activity loss de-

ductions;

•

Addition of certain depletion that is more

than the adjusted basis of the property;

•

Addition of part of the deduction for certain

intangible drilling costs; and

•

Addition of tax-exempt interest on certain

private activity bonds.

More information. For more information about

the AMT, see the Instructions for Form 6251.

Tax Figured by the IRS

If you file by the due date of your return (not

counting extensions) — April 15, 2024, for most

people — you can have the IRS figure your tax

for you on Form 1040 or 1040-SR.

If the IRS figures your tax and you paid too

much, you will receive a refund. If you didn’t pay

enough, you will receive a bill for the balance.

To avoid interest or the penalty for late payment,

you must pay the bill within 30 days of the date

of the bill or by the due date for your return,

whichever is later.

The IRS can also figure the credit for the eld-

erly or the disabled and the earned income

credit for you.

When the IRS cannot figure your tax. The

IRS can’t figure your tax for you if any of the

following apply.

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108 Chapter 13 How To Figure Your Tax Publication 17 (2023)

1. You want your refund directly deposited

into your checking or savings account.

2. You want any part of your refund applied to

your 2024 estimated tax.

3. You had income for the year from sources

other than wages, salaries, tips, interest,

dividends, taxable social security benefits,

unemployment compensation, IRA distri-

butions, pensions, and annuities.

4. Your taxable income is $100,000 or more.

5. You itemize deductions.

6. You file any of the following forms.

a. Form 2555, Foreign Earned Income.

b. Form 4137, Social Security and Medi-

care Tax on Unreported Tip Income.

c. Form 4970, Tax on Accumulation Dis-

tribution of Trusts.

d. Form 4972, Tax on Lump-Sum Distri-

butions.

e. Form 6198, At-Risk Limitations.

f. Form 6251, Alternative Minimum

Tax—Individuals.

g. Form 8606, Nondeductible IRAs.

h. Form 8615, Tax for Certain Children

Who Have Unearned Income.

i. Form 8814, Parents' Election To Re-

port Child's Interest and Dividends.

Form 8839, Qualified Adoption Ex-

penses.

Form 8853, Archer MSAs and

Long-Term Care Insurance Contracts.

Form 8889, Health Savings Accounts

(HSAs).

Form 8919, Uncollected Social Secur-

ity and Medicare Tax on Wages.

Filing the Return

After you complete the line entries for the tax

form you are filing, fill in your name and ad-

dress. Enter your social security number in the

space provided. If you are married, enter the so-

cial security numbers of you and your spouse,

even if you file separately. Sign and date your

return and enter your occupation(s). If you are

filing a joint return, both you and your spouse

must sign it. Enter your daytime phone number

in the space provided. This may help speed the

processing of your return if we have a question

that can be answered over the phone. If you are

filing a joint return, you may enter either your or

your spouse's daytime phone number.

If you want to allow your preparer, a friend, a

family member, or any other person you choose

to discuss your 2023 tax return with the IRS,

check the “Yes” box in the “Third Party Desig-

nee” area on your return. Also, enter the design-

ee's name, phone number, and any five digits

the designee chooses as their personal identifi-

cation number (PIN). If you check the “Yes” box,

you, and your spouse if filing a joint return, are

authorizing the IRS to call the designee to an-

swer any questions that may arise during the

processing of your return.

Fill in and attach any schedules and forms

asked for on the lines you completed to your pa-

per return. Attach a copy of each of your Forms

W-2 to your paper return. Also, attach to your

paper return any Form 1099-R you received that

has withholding tax in box 4.

Mail your return to the Internal Revenue

Service Center for the area where you live. A list

of Service Center addresses is in the instruc-

tions for your tax return.

Form 1040 or 1040-SR Line Entries

If you want the IRS to figure your tax. Read

Form 1040 or 1040-SR, lines 1 through 15, and

Schedule 1 (Form 1040), if applicable. Fill in the

lines that apply to you and attach Schedule 1

(Form 1040), if applicable. Don’t complete Form

1040 or 1040-SR, line 16 or 17.

If you are filing a joint return, use the space

on the dotted line next to the words “Adjusted

Gross Income” on the first page of your return to

separately show your taxable income and your

spouse's taxable income.

Read Form 1040 or 1040-SR, lines 19

through 33, and Schedules 2 and 3 (Form

1040), if applicable. Fill in the lines that apply to

you and attach Schedules 2 and 3 (Form 1040),

if applicable. Don’t fill in Form 1040 or 1040-SR,

lines 22, 24, 33, or 34 through 38. Don’t fill in

Schedule 2 (Form 1040), line 1 or 3. Also, don’t

complete Schedule 3 (Form 1040), line 6d, if

you are completing Schedule R (Form 1040), or

Form 1040 or 1040-SR, line 27, if you want the

IRS to figure the credits shown on those lines.

Payments. If you have federal income tax with-

held that is shown on Form W-2, box 2; Form

1099, box 4; Form W-2G, box 4; or another form

(see the Instructions for Form 1040 for more in-

formation), enter the amount on Form 1040 or

1040-SR, line 25. Enter any estimated tax pay-

ments you made on Form 1040 or 1040-SR,

line 26.

Credit for child and dependent care expen-

ses. If you can take this credit, complete Form

2441 and attach it to your paper return. Enter

the amount of the credit on Schedule 3 (Form

1040), line 2. The IRS will not figure this credit.

Net premium tax credit. If you take this credit,

complete Form 8962, Premium Tax Credit

(PTC), and attach it to your return. Enter the

amount of the credit on Schedule 3 (Form

1040), line 9. The IRS will not figure this credit.

Credit for the elderly or the disabled. If you

can take this credit, the IRS can figure it for you.

Enter “CFE” on the line next to Schedule 3

(Form 1040), line 6d, and attach Schedule R

(Form 1040) to your paper return. On Sched-

ule R (Form 1040), check the box in Part I for

your filing status and age. Complete Parts II and

III, lines 11 and 13, if they apply.

Earned income credit. If you can take this

credit, the IRS can figure it for you. Enter “EIC”

on the dotted line on Form 1040 or 1040-SR,

line 27. If you elect to use your nontaxable com-

bat pay in figuring your EIC, enter the amount

on Form 1040 or 1040-SR, line 1i.

If you have a qualifying child, you must fill in

Schedule EIC (Form 1040), Earned Income

Credit, and attach it to your paper return. If you

don’t provide the child's social security number

on Schedule EIC, line 2, the credit will be re-

duced or disallowed unless the child was born

and died in 2023.

If your credit for any year after 1996 was re-

duced or disallowed by the IRS, you may also

have to file Form 8862 with your return. For de-

tails, see the Instructions for Form 1040.

14.

Child Tax Credit

and Credit for

Other

Dependents

What’s New

ACTC amount increased. The maximum

amount of ACTC for each qualifying child in-

creased to $1,600.

Reminders

Schedule 8812 (Form 1040). The Schedule

8812 (Form 1040) and its instructions are the

single source for figuring and reporting the child

tax credit, credit for other dependents, and ad-

ditional child tax credit. The instructions now in-

clude all applicable worksheets for figuring

these credits. As a result, Pub. 972, Child Tax

Credit, won’t be revised. For prior-year versions

of Pub. 972, go to IRS.gov/Pub972.

Abbreviations used throughout this chap-

ter. The following abbreviations will be used in

this chapter when appropriate.

•

ACTC means additional child tax credit.

•

ATIN means adoption taxpayer identifica-

tion number.

•

CTC means child tax credit.

•

ITIN means individual taxpayer identifica-

tion number.

•

ODC means credit for other dependents.

•

SSN means social security number.

•

TIN means taxpayer identification number.

A TIN may be an ATIN, an ITIN, or an SSN.

Other abbreviations may be used in this chapter

and will be defined as needed.

Delayed refund for returns claiming the

ACTC. The IRS can’t issue refunds before

mid-February 2024 for returns that properly

claim the ACTC. This time frame applies to the

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entire refund, not just the portion associated

with the ACTC.

Introduction

The CTC is a credit that may reduce your tax by

as much as $2,000 for each child who qualifies

you for the credit. See Limits on the CTC and

ODC, later.

The ACTC is a credit you may be able to

take if you are not able to claim the full amount

of the CTC.

The ODC is a credit that may reduce your

tax by as much as $500 for each eligible de-

pendent.

The CTC and the ACTC shouldn’t be

confused with the child and dependent

care credit discussed in Pub. 503.

Useful Items

You may want to see:

Form (and Instructions)

Schedule 8812 (Form 1040) Credits for

Qualifying Children and Other

Dependents

8862 Information To Claim Certain Credits

After Disallowance

For these and other useful items, go to IRS.gov/

Forms.

Taxpayer Identification

Number Requirements

You must have a TIN by the due date of your

return. If you, or your spouse if filing jointly,

don’t have an SSN or ITIN issued on or before

the due date of your 2023 return (including ex-

tensions), you can’t claim the CTC, ODC, or

ACTC on either your original or amended 2023

tax return.

If you apply for an ITIN on or before the due

date of your 2023 return (including extensions)

and the IRS issues you an ITIN as a result of the

application, the IRS will consider your ITIN as

issued on or before the due date of your return.

Each qualifying child you use for CTC or

ACTC must have the required SSN. If you

have a qualifying child who doesn’t have the re-

quired SSN, you can’t use the child to claim the

CTC or ACTC on either your original or amen-

ded 2023 tax return. The required SSN is one

that is valid for employment and is issued be-

fore the due date of your 2023 return (including

extensions).

If your qualifying child was born and died in

2023 and you don’t have an SSN for the child,

attach a copy of the child’s birth certificate,

death certificate, or hospital records. The docu-

ment must show the child was born alive.

If your qualifying child doesn’t have the re-

quired SSN but has another type of TIN issued

on or before the due date of your 2023 return

(including extensions), you may be able to claim

the ODC for that child. See Credit for Other De-

pendents (ODC), later.

Each dependent you use for the ODC must

have a TIN by the due date of your return. If

CAUTION

Schedule 8812 (Form 1040)

8862

you have a dependent who doesn’t have an

SSN, ITIN, or ATIN issued on or before the due

date of your 2023 return (including extensions),

you can’t use that dependent to claim the ODC

on either your original or amended 2023 tax re-

turn.

If you apply for an ITIN or ATIN for the de-

pendent on or before the due date of your 2023

return (including extensions) and the IRS issues

the ITIN or ATIN as a result of the application,

the IRS will consider the ITIN or ATIN as issued

on or before the due date of your return.

Improper Claims

If you erroneously claim the CTC, ACTC, or

ODC, and it is later determined that your error

was due to reckless or intentional disregard of

the CTC, ACTC, or ODC rules, you will not be

allowed to claim any of these credits for 2 years.

If it is determined that your error was due to

fraud, you will not be allowed to claim any of

these credits for 10 years. You may also have to

pay penalties.

Form 8862 may be required. If your CTC (re-

fundable or nonrefundable depending on the

tax year), ACTC, or ODC for a year after 2015

was denied or reduced for any reason other

than a math or clerical error, you must attach

Form 8862 to your tax return to claim the CTC,

ACTC, or ODC, unless an exception applies.

See Form 8862, Information To Claim Certain

Credits After Disallowance, and its instructions

for more information, including whether an ex-

ception applies.

Child Tax Credit (CTC)

The CTC is for individuals who claim a child as

a dependent if the child meets additional condi-

tions (described later).

Note. This credit is different from and in ad-

dition to the credit for child and dependent care

expenses and the earned income credit that

you may also be eligible to claim.

The maximum amount you can claim for the

credit is $2,000 for each child who qualifies you

for the CTC. But, see Limits on the CTC and

ODC, later.

For more information about claiming the

CTC, see Claiming the CTC and ODC, later.

Qualifying Child for the

CTC

A child qualifies you for the CTC if the child

meets all of the following conditions.

1. The child is your son, daughter, stepchild,

foster child, brother, sister, stepbrother,

stepsister, half brother, half sister, or a de-

scendant of any of them (for example, your

grandchild, niece, or nephew).

2. The child was under age 17 at the end of

2023.

3. The child didn’t provide over half the

child’s own support for 2023.

4. The child lived with you for more than half

of 2023 (see Exceptions to time lived with

you, later).

5. The child is claimed as a dependent on

your return. See chapter 3 for more infor-

mation about claiming someone as a de-

pendent.

6. The child doesn’t file a joint return for the

year (or files it only to claim a refund of

withheld income tax or estimated tax

paid).

7. The child was a U.S. citizen, U.S. national,

or U.S. resident alien. For more informa-

tion, see Pub. 519. If the child was adop-

ted, see Adopted child, later.

Example. Your child turned 17 on Decem-

ber 30, 2023, and is a citizen of the United

States and claimed as a dependent on your re-

turn. You can't use the child to claim the CTC or

ACTC because the child was not under age 17

at the end of 2023.

If your child is age 17 or older at the

end of 2023, see Credit for Other De-

pendents (ODC), later.

Adopted child. An adopted child is always

treated as your own child. An adopted child in-

cludes a child lawfully placed with you for legal

adoption.

If you are a U.S. citizen or U.S. national and

your adopted child lived with you all year as a

member of your household in 2023, that child

meets condition 7, earlier, to be a qualifying

child for the child tax credit (or condition 3, later,

to be a qualifying person for the ODC).

Exceptions to time lived with you. A child is

considered to have lived with you for more than

half of 2023 if the child was born or died in 2023

and your home was this child's home for more

than half the time the child was alive. Temporary

absences by you or the child for special circum-

stances, such as school, vacation, business,

medical care, military service, or detention in a

juvenile facility, count as time the child lived with

you.

There are also exceptions for kidnapped

children and children of divorced or separated

parents. For details, see Residency Test in

chapter 3.

Qualifying child of more than one person.

A special rule applies if your qualifying child is

the qualifying child of more than one person.

For details, see Qualifying Child of More Than

One Person in chapter 3.

Required SSN

In addition to being a qualifying child for the

CTC, your child must have the required SSN.

The required SSN is one that is valid for em-

ployment and that is issued by the Social Se-

curity Administration (SSA) before the due date

of your 2023 return (including extensions).

If your qualifying child does not have

the required SSN, see Credit for Other

Dependents (ODC), later.

If your child was a U.S. citizen when the

child received the SSN, the SSN is valid for

TIP

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110 Chapter 14 Child Tax Credit and Credit for Other Dependents Publication 17 (2023)

employment. If “Not Valid for Employment” is

printed on your child’s social security card and

your child’s immigration status has changed so

that your child is now a U.S. citizen or perma-

nent resident, ask the SSA for a new social se-

curity card without the legend. However, if “Valid

for Work Only With DHS Authorization” is prin-

ted on your child’s social security card, your

child has the required SSN only as long as the

Department of Homeland Security (DHS) au-

thorization is valid.

If your child doesn’t have the required SSN,

you can't use the child to claim the CTC or

ACTC on either your original or amended 2023

tax return.

Credit for Other

Dependents (ODC)

This credit is for individuals with a dependent

who meets additional conditions (described

later).

Note. This credit is different from and in ad-

dition to the credit for child and dependent care

expenses that you may also be eligible to claim.

The maximum amount you can claim for this

credit is $500 for each qualifying dependent.

See Limits on the CTC and ODC, later.

For more information about claiming the

ODC, see Claiming the CTC and ODC, later.

Qualifying Person for the

ODC

A person qualifies you for the ODC if the person

meets all of the following conditions.

1. The person is claimed as a dependent on

your return. See chapter 3 for more infor-

mation about claiming someone as a de-

pendent.

2. The person can’t be used by you to claim

the CTC or ACTC. See Child Tax Credit

(CTC), earlier.

3. The person was a U.S. citizen, U.S. na-

tional, or U.S. resident alien. For more in-

formation, see Pub. 519. If the person is

your adopted child, see Adopted child,

earlier.

Example. Your sibling’s 10-year-old child

lives in Mexico and qualifies as your dependent.

The child is not a U.S. citizen, U.S. national, or

U.S. resident alien. You can't use this depend-

ent to claim the ODC.

You can’t use the same child to claim

the CTC or ACTC, and the ODC.

Timely Issued TIN

In addition to being a qualifying person for the

ODC, the person must have an SSN, ITIN, or

ATIN issued to the dependent on or before the

due date of your 2023 return (including exten-

sions). If the person has not been issued an

SSN, ITIN, or ATIN by that date, you can’t use

the person to claim the ODC on either your orig-

inal or amended 2023 return. For more informa-

tion, see Taxpayer Identification Number Re-

quirements, earlier.

Limits on the CTC and

ODC

The credit amount of your CTC or ODC may be

reduced if your modified adjusted gross income

(AGI) is more than the amounts shown below

for your filing status.

•

Married filing jointly — $400,000.

•

All other filing statuses — $200,000.

Modified AGI. For purposes of the CTC and

ODC, your modified AGI is the amount on line 3

of Schedule 8812.

For more information about limits on the

CTC and ODC, see the Instructions for Sched-

ule 8812 (Form 1040).

Claiming the CTC and

ODC

To claim the CTC or ODC, be sure you meet the

following requirements.

•

You must file Form 1040, 1040-SR, or

1040-NR and include the name and TIN of

each dependent for whom you are claiming

the CTC or ODC.

CAUTION

•

You must file Schedule 8812 (Form 1040).

•

You must file Form 8862, if applicable. See

Improper Claims, earlier.

•

You must enter a timely issued TIN on your

tax return for you and your spouse (if filing

jointly). See Taxpayer Identification Num-

ber Requirements, earlier.

•

For each qualifying child under 17 for

whom you are claiming the CTC, you must

enter the required SSN for the child in col-

umn (2) of the Dependents section of your

tax return and check the Child tax credit

box in column (4). See Child Tax Credit

(CTC), earlier.

•

For each dependent for whom you are

claiming the ODC, you must enter the

timely issued TIN for the dependent in col-

umn (2) of the Dependents section of your

tax return and check the Credit for other

dependents box in column (4). See Credit

for Other Dependents (ODC), earlier.

Don't check both the Child tax credit

box and the Credit for other depend-

ents box for the same person.

Additional Child Tax

Credit (ACTC)

This credit is for certain individuals who get less

than the full amount of the CTC.

The ODC can’t be used to figure the

ACTC. Only your CTC can be used to

figure your ACTC. If you are claiming

the ODC but not the CTC, you can’t claim the

ACTC.

Foreign earned income. If you file Form 2555

(relating to foreign earned income), you can’t

claim the ACTC.

Bona fide residents of Puerto Rico. Bona

fide residents of Puerto Rico are no longer re-

quired to have three or more qualifying children

to be eligible to claim the ACTC. See Schedule

8812 (Form 1040) and its instructions.

How to claim the ACTC. To claim the ACTC,

see Schedule 8812 (Form 1040) and its instruc-

tions.

CAUTION

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2023

Tax Table

CAUTION

See Line 16 in the Instructions for Form 1040 to see if you must use

the Tax Table below to figure your tax.

Least

But

Less

Than

Single Married

ling

jointly*

Married

ling

sepa-

rately

Head

of a

house-

hold

Your tax is—

25,200

25,250

25,300

25,350

2,807

2,813

2,819

2,825

Sample Table

25,250

25,300

25,350

25,400

2,587

2,593

2,599

2,605

2,807

2,813

2,819

2,825

2,713

2,719

2,725

2,731

Example. A married couple are filing a joint return. Their taxable income on Form

1040, line 15, is $25,300. First, they find the $25,300–$25,350 taxable income line.

Next, they find the column for married filing jointly and read down the column. The

amount shown where the taxable income line and filing status column meet is

$2,599. This is the tax amount they should enter in the entry space on Form 1040,

line 16.

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

0 5 0 0 0 0

5 15 1 1 1 1

15 25 2 2 2 2

25 50 4 4 4 4

50 75 6 6 6 6

75 100 9 9 9 9

100 125 11 11 11 11

125 150 14 14 14 14

150 175 16 16 16 16

175 200 19 19 19 19

200 225 21 21 21 21

225 250 24 24 24 24

250 275 26 26 26 26

275 300 29 29 29 29

300 325 31 31 31 31

325 350 34 34 34 34

350 375 36 36 36 36

375 400 39 39 39 39

400 425 41 41 41 41

425 450 44 44 44 44

450 475 46 46 46 46

475 500 49 49 49 49

500 525 51 51 51 51

525 550 54 54 54 54

550 575 56 56 56 56

575 600 59 59 59 59

600 625 61 61 61 61

625 650 64 64 64 64

650 675 66 66 66 66

675 700 69 69 69 69

700 725 71 71 71 71

725 750 74 74 74 74

750 775 76 76 76 76

775 800 79 79 79 79

800 825 81 81 81 81

825 850 84 84 84 84

850 875 86 86 86 86

875 900 89 89 89 89

900 925 91 91 91 91

925 950 94 94 94 94

950 975 96 96 96 96

975 1,000 99 99 99 99

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

1,000

1,000 1,025 101 101 101 101

1,025 1,050 104 104 104 104

1,050 1,075 106 106 106 106

1,075 1,100 109 109 109 109

1,100 1,125 111 111 111 111

1,125 1,150 114 114 114 114

1,150 1,175 116 116 116 116

1,175 1,200 119 119 119 119

1,200 1,225 121 121 121 121

1,225 1,250 124 124 124 124

1,250 1,275 126 126 126 126

1,275 1,300 129 129 129 129

1,300 1,325 131 131 131 131

1,325 1,350 134 134 134 134

1,350 1,375 136 136 136 136

1,375 1,400 139 139 139 139

1,400 1,425 141 141 141 141

1,425 1,450 144 144 144 144

1,450 1,475 146 146 146 146

1,475 1,500 149 149 149 149

1,500 1,525 151 151 151 151

1,525 1,550 154 154 154 154

1,550 1,575 156 156 156 156

1,575 1,600 159 159 159 159

1,600 1,625 161 161 161 161

1,625 1,650 164 164 164 164

1,650 1,675 166 166 166 166

1,675 1,700 169 169 169 169

1,700 1,725 171 171 171 171

1,725 1,750 174 174 174 174

1,750 1,775 176 176 176 176

1,775 1,800 179 179 179 179

1,800 1,825 181 181 181 181

1,825 1,850 184 184 184 184

1,850 1,875 186 186 186 186

1,875 1,900 189 189 189 189

1,900 1,925 191 191 191 191

1,925 1,950 194 194 194 194

1,950 1,975 196 196 196 196

1,975 2,000 199 199 199 199

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

2,000

2,000 2,025 201 201 201 201

2,025 2,050 204 204 204 204

2,050 2,075 206 206 206 206

2,075 2,100 209 209 209 209

2,100 2,125 211 211 211 211

2,125 2,150 214 214 214 214

2,150 2,175 216 216 216 216

2,175 2,200 219 219 219 219

2,200 2,225 221 221 221 221

2,225 2,250 224 224 224 224

2,250 2,275 226 226 226 226

2,275 2,300 229 229 229 229

2,300 2,325 231 231 231 231

2,325 2,350 234 234 234 234

2,350 2,375 236 236 236 236

2,375 2,400 239 239 239 239

2,400 2,425 241 241 241 241

2,425 2,450 244 244 244 244

2,450 2,475 246 246 246 246

2,475 2,500 249 249 249 249

2,500 2,525 251 251 251 251

2,525 2,550 254 254 254 254

2,550 2,575 256 256 256 256

2,575 2,600 259 259 259 259

2,600 2,625 261 261 261 261

2,625 2,650 264 264 264 264

2,650 2,675 266 266 266 266

2,675 2,700 269 269 269 269

2,700 2,725 271 271 271 271

2,725 2,750 274 274 274 274

2,750 2,775 276 276 276 276

2,775 2,800 279 279 279 279

2,800 2,825 281 281 281 281

2,825 2,850 284 284 284 284

2,850 2,875 286 286 286 286

2,875 2,900 289 289 289 289

2,900 2,925 291 291 291 291

2,925 2,950 294 294 294 294

2,950 2,975 296 296 296 296

2,975 3,000 299 299 299 299

(Continued)

* This column must also be used by a qualifying surviving spouse.

112

Publication 17 (2023)

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2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

3,000

3,000 3,050 303 303 303 303

3,050 3,100 308 308 308 308

3,100 3,150 313 313 313 313

3,150 3,200 318 318 318 318

3,200 3,250 323 323 323 323

3,250 3,300 328 328 328 328

3,300 3,350 333 333 333 333

3,350 3,400 338 338 338 338

3,400 3,450 343 343 343 343

3,450 3,500 348 348 348 348

3,500 3,550 353 353 353 353

3,550 3,600 358 358 358 358

3,600 3,650 363 363 363 363

3,650 3,700 368 368 368 368

3,700 3,750 373 373 373 373

3,750 3,800 378 378 378 378

3,800 3,850 383 383 383 383

3,850 3,900 388 388 388 388

3,900 3,950 393 393 393 393

3,950 4,000 398 398 398 398

4,000

4,000 4,050 403 403 403 403

4,050 4,100 408 408 408 408

4,100 4,150 413 413 413 413

4,150 4,200 418 418 418 418

4,200 4,250 423 423 423 423

4,250 4,300 428 428 428 428

4,300 4,350 433 433 433 433

4,350 4,400 438 438 438 438

4,400 4,450 443 443 443 443

4,450 4,500 448 448 448 448

4,500 4,550 453 453 453 453

4,550 4,600 458 458 458 458

4,600 4,650 463 463 463 463

4,650 4,700 468 468 468 468

4,700 4,750 473 473 473 473

4,750 4,800 478 478 478 478

4,800 4,850 483 483 483 483

4,850 4,900 488 488 488 488

4,900 4,950 493 493 493 493

4,950 5,000 498 498 498 498

5,000

5,000 5,050 503 503 503 503

5,050 5,100 508 508 508 508

5,100 5,150 513 513 513 513

5,150 5,200 518 518 518 518

5,200 5,250 523 523 523 523

5,250 5,300 528 528 528 528

5,300 5,350 533 533 533 533

5,350 5,400 538 538 538 538

5,400 5,450 543 543 543 543

5,450 5,500 548 548 548 548

5,500 5,550 553 553 553 553

5,550 5,600 558 558 558 558

5,600 5,650 563 563 563 563

5,650 5,700 568 568 568 568

5,700 5,750 573 573 573 573

5,750 5,800 578 578 578 578

5,800 5,850 583 583 583 583

5,850 5,900 588 588 588 588

5,900 5,950 593 593 593 593

5,950 6,000 598 598 598 598

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

6,000

6,000 6,050 603 603 603 603

6,050 6,100 608 608 608 608

6,100 6,150 613 613 613 613

6,150 6,200 618 618 618 618

6,200 6,250 623 623 623 623

6,250 6,300 628 628 628 628

6,300 6,350 633 633 633 633

6,350 6,400 638 638 638 638

6,400 6,450 643 643 643 643

6,450 6,500 648 648 648 648

6,500 6,550 653 653 653 653

6,550 6,600 658 658 658 658

6,600 6,650 663 663 663 663

6,650 6,700 668 668 668 668

6,700 6,750 673 673 673 673

6,750 6,800 678 678 678 678

6,800 6,850 683 683 683 683

6,850 6,900 688 688 688 688

6,900 6,950 693 693 693 693

6,950 7,000 698 698 698 698

7,000

7,000 7,050 703 703 703 703

7,050 7,100 708 708 708 708

7,100 7,150 713 713 713 713

7,150 7,200 718 718 718 718

7,200 7,250 723 723 723 723

7,250 7,300 728 728 728 728

7,300 7,350 733 733 733 733

7,350 7,400 738 738 738 738

7,400 7,450 743 743 743 743

7,450 7,500 748 748 748 748

7,500 7,550 753 753 753 753

7,550 7,600 758 758 758 758

7,600 7,650 763 763 763 763

7,650 7,700 768 768 768 768

7,700 7,750 773 773 773 773

7,750 7,800 778 778 778 778

7,800 7,850 783 783 783 783

7,850 7,900 788 788 788 788

7,900 7,950 793 793 793 793

7,950 8,000 798 798 798 798

8,000

8,000 8,050 803 803 803 803

8,050 8,100 808 808 808 808

8,100 8,150 813 813 813 813

8,150 8,200 818 818 818 818

8,200 8,250 823 823 823 823

8,250 8,300 828 828 828 828

8,300 8,350 833 833 833 833

8,350 8,400 838 838 838 838

8,400 8,450 843 843 843 843

8,450 8,500 848 848 848 848

8,500 8,550 853 853 853 853

8,550 8,600 858 858 858 858

8,600 8,650 863 863 863 863

8,650 8,700 868 868 868 868

8,700 8,750 873 873 873 873

8,750 8,800 878 878 878 878

8,800 8,850 883 883 883 883

8,850 8,900 888 888 888 888

8,900 8,950 893 893 893 893

8,950 9,000 898 898 898 898

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

9,000

9,000 9,050 903 903 903 903

9,050 9,100 908 908 908 908

9,100 9,150 913 913 913 913

9,150 9,200 918 918 918 918

9,200 9,250 923 923 923 923

9,250 9,300 928 928 928 928

9,300 9,350 933 933 933 933

9,350 9,400 938 938 938 938

9,400 9,450 943 943 943 943

9,450 9,500 948 948 948 948

9,500 9,550 953 953 953 953

9,550 9,600 958 958 958 958

9,600 9,650 963 963 963 963

9,650 9,700 968 968 968 968

9,700 9,750 973 973 973 973

9,750 9,800 978 978 978 978

9,800 9,850 983 983 983 983

9,850 9,900 988 988 988 988

9,900 9,950 993 993 993 993

9,950 10,000 998 998 998 998

10,000

10,000 10,050 1,003 1,003 1,003 1,003

10,050 10,100 1,008 1,008 1,008 1,008

10,100 10,150 1,013 1,013 1,013 1,013

10,150 10,200 1,018 1,018 1,018 1,018

10,200 10,250 1,023 1,023 1,023 1,023

10,250 10,300 1,028 1,028 1,028 1,028

10,300 10,350 1,033 1,033 1,033 1,033

10,350 10,400 1,038 1,038 1,038 1,038

10,400 10,450 1,043 1,043 1,043 1,043

10,450 10,500 1,048 1,048 1,048 1,048

10,500 10,550 1,053 1,053 1,053 1,053

10,550 10,600 1,058 1,058 1,058 1,058

10,600 10,650 1,063 1,063 1,063 1,063

10,650 10,700 1,068 1,068 1,068 1,068

10,700 10,750 1,073 1,073 1,073 1,073

10,750 10,800 1,078 1,078 1,078 1,078

10,800 10,850 1,083 1,083 1,083 1,083

10,850 10,900 1,088 1,088 1,088 1,088

10,900 10,950 1,093 1,093 1,093 1,093

10,950 11,000 1,098 1,098 1,098 1,098

11,000

11,000 11,050 1,103 1,103 1,103 1,103

11,050 11,100 1,109 1,108 1,109 1,108

11,100 11,150 1,115 1,113 1,115 1,113

11,150 11,200 1,121 1,118 1,121 1,118

11,200 11,250 1,127 1,123 1,127 1,123

11,250 11,300 1,133 1,128 1,133 1,128

11,300 11,350 1,139 1,133 1,139 1,133

11,350 11,400 1,145 1,138 1,145 1,138

11,400 11,450 1,151 1,143 1,151 1,143

11,450 11,500 1,157 1,148 1,157 1,148

11,500 11,550 1,163 1,153 1,163 1,153

11,550 11,600 1,169 1,158 1,169 1,158

11,600 11,650 1,175 1,163 1,175 1,163

11,650 11,700 1,181 1,168 1,181 1,168

11,700 11,750 1,187 1,173 1,187 1,173

11,750 11,800 1,193 1,178 1,193 1,178

11,800 11,850 1,199 1,183 1,199 1,183

11,850 11,900 1,205 1,188 1,205 1,188

11,900 11,950 1,211 1,193 1,211 1,193

11,950 12,000 1,217 1,198 1,217 1,198

(Continued)

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)

113

Page 116 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

12,000

12,000 12,050 1,223 1,203 1,223 1,203

12,050 12,100 1,229 1,208 1,229 1,208

12,100 12,150 1,235 1,213 1,235 1,213

12,150 12,200 1,241 1,218 1,241 1,218

12,200 12,250 1,247 1,223 1,247 1,223

12,250 12,300 1,253 1,228 1,253 1,228

12,300 12,350 1,259 1,233 1,259 1,233

12,350 12,400 1,265 1,238 1,265 1,238

12,400 12,450 1,271 1,243 1,271 1,243

12,450 12,500 1,277 1,248 1,277 1,248

12,500 12,550 1,283 1,253 1,283 1,253

12,550 12,600 1,289 1,258 1,289 1,258

12,600 12,650 1,295 1,263 1,295 1,263

12,650 12,700 1,301 1,268 1,301 1,268

12,700 12,750 1,307 1,273 1,307 1,273

12,750 12,800 1,313 1,278 1,313 1,278

12,800 12,850 1,319 1,283 1,319 1,283

12,850 12,900 1,325 1,288 1,325 1,288

12,900 12,950 1,331 1,293 1,331 1,293

12,950 13,000 1,337 1,298 1,337 1,298

13,000

13,000 13,050 1,343 1,303 1,343 1,303

13,050 13,100 1,349 1,308 1,349 1,308

13,100 13,150 1,355 1,313 1,355 1,313

13,150 13,200 1,361 1,318 1,361 1,318

13,200 13,250 1,367 1,323 1,367 1,323

13,250 13,300 1,373 1,328 1,373 1,328

13,300 13,350 1,379 1,333 1,379 1,333

13,350 13,400 1,385 1,338 1,385 1,338

13,400 13,450 1,391 1,343 1,391 1,343

13,450 13,500 1,397 1,348 1,397 1,348

13,500 13,550 1,403 1,353 1,403 1,353

13,550 13,600 1,409 1,358 1,409 1,358

13,600 13,650 1,415 1,363 1,415 1,363

13,650 13,700 1,421 1,368 1,421 1,368

13,700 13,750 1,427 1,373 1,427 1,373

13,750 13,800 1,433 1,378 1,433 1,378

13,800 13,850 1,439 1,383 1,439 1,383

13,850 13,900 1,445 1,388 1,445 1,388

13,900 13,950 1,451 1,393 1,451 1,393

13,950 14,000 1,457 1,398 1,457 1,398

14,000

14,000 14,050 1,463 1,403 1,463 1,403

14,050 14,100 1,469 1,408 1,469 1,408

14,100 14,150 1,475 1,413 1,475 1,413

14,150 14,200 1,481 1,418 1,481 1,418

14,200 14,250 1,487 1,423 1,487 1,423

14,250 14,300 1,493 1,428 1,493 1,428

14,300 14,350 1,499 1,433 1,499 1,433

14,350 14,400 1,505 1,438 1,505 1,438

14,400 14,450 1,511 1,443 1,511 1,443

14,450 14,500 1,517 1,448 1,517 1,448

14,500 14,550 1,523 1,453 1,523 1,453

14,550 14,600 1,529 1,458 1,529 1,458

14,600 14,650 1,535 1,463 1,535 1,463

14,650 14,700 1,541 1,468 1,541 1,468

14,700 14,750 1,547 1,473 1,547 1,473

14,750 14,800 1,553 1,478 1,553 1,478

14,800 14,850 1,559 1,483 1,559 1,483

14,850 14,900 1,565 1,488 1,565 1,488

14,900 14,950 1,571 1,493 1,571 1,493

14,950 15,000 1,577 1,498 1,577 1,498

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

15,000

15,000 15,050 1,583 1,503 1,583 1,503

15,050 15,100 1,589 1,508 1,589 1,508

15,100 15,150 1,595 1,513 1,595 1,513

15,150 15,200 1,601 1,518 1,601 1,518

15,200 15,250 1,607 1,523 1,607 1,523

15,250 15,300 1,613 1,528 1,613 1,528

15,300 15,350 1,619 1,533 1,619 1,533

15,350 15,400 1,625 1,538 1,625 1,538

15,400 15,450 1,631 1,543 1,631 1,543

15,450 15,500 1,637 1,548 1,637 1,548

15,500 15,550 1,643 1,553 1,643 1,553

15,550 15,600 1,649 1,558 1,649 1,558

15,600 15,650 1,655 1,563 1,655 1,563

15,650 15,700 1,661 1,568 1,661 1,568

15,700 15,750 1,667 1,573 1,667 1,573

15,750 15,800 1,673 1,578 1,673 1,579

15,800 15,850 1,679 1,583 1,679 1,585

15,850 15,900 1,685 1,588 1,685 1,591

15,900 15,950 1,691 1,593 1,691 1,597

15,950 16,000 1,697 1,598 1,697 1,603

16,000

16,000 16,050 1,703 1,603 1,703 1,609

16,050 16,100 1,709 1,608 1,709 1,615

16,100 16,150 1,715 1,613 1,715 1,621

16,150 16,200 1,721 1,618 1,721 1,627

16,200 16,250 1,727 1,623 1,727 1,633

16,250 16,300 1,733 1,628 1,733 1,639

16,300 16,350 1,739 1,633 1,739 1,645

16,350 16,400 1,745 1,638 1,745 1,651

16,400 16,450 1,751 1,643 1,751 1,657

16,450 16,500 1,757 1,648 1,757 1,663

16,500 16,550 1,763 1,653 1,763 1,669

16,550 16,600 1,769 1,658 1,769 1,675

16,600 16,650 1,775 1,663 1,775 1,681

16,650 16,700 1,781 1,668 1,781 1,687

16,700 16,750 1,787 1,673 1,787 1,693

16,750 16,800 1,793 1,678 1,793 1,699

16,800 16,850 1,799 1,683 1,799 1,705

16,850 16,900 1,805 1,688 1,805 1,711

16,900 16,950 1,811 1,693 1,811 1,717

16,950 17,000 1,817 1,698 1,817 1,723

17,000

17,000 17,050 1,823 1,703 1,823 1,729

17,050 17,100 1,829 1,708 1,829 1,735

17,100 17,150 1,835 1,713 1,835 1,741

17,150 17,200 1,841 1,718 1,841 1,747

17,200 17,250 1,847 1,723 1,847 1,753

17,250 17,300 1,853 1,728 1,853 1,759

17,300 17,350 1,859 1,733 1,859 1,765

17,350 17,400 1,865 1,738 1,865 1,771

17,400 17,450 1,871 1,743 1,871 1,777

17,450 17,500 1,877 1,748 1,877 1,783

17,500 17,550 1,883 1,753 1,883 1,789

17,550 17,600 1,889 1,758 1,889 1,795

17,600 17,650 1,895 1,763 1,895 1,801

17,650 17,700 1,901 1,768 1,901 1,807

17,700 17,750 1,907 1,773 1,907 1,813

17,750 17,800 1,913 1,778 1,913 1,819

17,800 17,850 1,919 1,783 1,919 1,825

17,850 17,900 1,925 1,788 1,925 1,831

17,900 17,950 1,931 1,793 1,931 1,837

17,950 18,000 1,937 1,798 1,937 1,843

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

18,000

18,000 18,050 1,943 1,803 1,943 1,849

18,050 18,100 1,949 1,808 1,949 1,855

18,100 18,150 1,955 1,813 1,955 1,861

18,150 18,200 1,961 1,818 1,961 1,867

18,200 18,250 1,967 1,823 1,967 1,873

18,250 18,300 1,973 1,828 1,973 1,879

18,300 18,350 1,979 1,833 1,979 1,885

18,350 18,400 1,985 1,838 1,985 1,891

18,400 18,450 1,991 1,843 1,991 1,897

18,450 18,500 1,997 1,848 1,997 1,903

18,500 18,550 2,003 1,853 2,003 1,909

18,550 18,600 2,009 1,858 2,009 1,915

18,600 18,650 2,015 1,863 2,015 1,921

18,650 18,700 2,021 1,868 2,021 1,927

18,700 18,750 2,027 1,873 2,027 1,933

18,750 18,800 2,033 1,878 2,033 1,939

18,800 18,850 2,039 1,883 2,039 1,945

18,850 18,900 2,045 1,888 2,045 1,951

18,900 18,950 2,051 1,893 2,051 1,957

18,950 19,000 2,057 1,898 2,057 1,963

19,000

19,000 19,050 2,063 1,903 2,063 1,969

19,050 19,100 2,069 1,908 2,069 1,975

19,100 19,150 2,075 1,913 2,075 1,981

19,150 19,200 2,081 1,918 2,081 1,987

19,200 19,250 2,087 1,923 2,087 1,993

19,250 19,300 2,093 1,928 2,093 1,999

19,300 19,350 2,099 1,933 2,099 2,005

19,350 19,400 2,105 1,938 2,105 2,011

19,400 19,450 2,111 1,943 2,111 2,017

19,450 19,500 2,117 1,948 2,117 2,023

19,500 19,550 2,123 1,953 2,123 2,029

19,550 19,600 2,129 1,958 2,129 2,035

19,600 19,650 2,135 1,963 2,135 2,041

19,650 19,700 2,141 1,968 2,141 2,047

19,700 19,750 2,147 1,973 2,147 2,053

19,750 19,800 2,153 1,978 2,153 2,059

19,800 19,850 2,159 1,983 2,159 2,065

19,850 19,900 2,165 1,988 2,165 2,071

19,900 19,950 2,171 1,993 2,171 2,077

19,950 20,000 2,177 1,998 2,177 2,083

20,000

20,000 20,050 2,183 2,003 2,183 2,089

20,050 20,100 2,189 2,008 2,189 2,095

20,100 20,150 2,195 2,013 2,195 2,101

20,150 20,200 2,201 2,018 2,201 2,107

20,200 20,250 2,207 2,023 2,207 2,113

20,250 20,300 2,213 2,028 2,213 2,119

20,300 20,350 2,219 2,033 2,219 2,125

20,350 20,400 2,225 2,038 2,225 2,131

20,400 20,450 2,231 2,043 2,231 2,137

20,450 20,500 2,237 2,048 2,237 2,143

20,500 20,550 2,243 2,053 2,243 2,149

20,550 20,600 2,249 2,058 2,249 2,155

20,600 20,650 2,255 2,063 2,255 2,161

20,650 20,700 2,261 2,068 2,261 2,167

20,700 20,750 2,267 2,073 2,267 2,173

20,750 20,800 2,273 2,078 2,273 2,179

20,800 20,850 2,279 2,083 2,279 2,185

20,850 20,900 2,285 2,088 2,285 2,191

20,900 20,950 2,291 2,093 2,291 2,197

20,950 21,000 2,297 2,098 2,297 2,203

(Continued)

* This column must also be used by a qualifying surviving spouse.

114

Publication 17 (2023)

Page 117 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

21,000

21,000 21,050 2,303 2,103 2,303 2,209

21,050 21,100 2,309 2,108 2,309 2,215

21,100 21,150 2,315 2,113 2,315 2,221

21,150 21,200 2,321 2,118 2,321 2,227

21,200 21,250 2,327 2,123 2,327 2,233

21,250 21,300 2,333 2,128 2,333 2,239

21,300 21,350 2,339 2,133 2,339 2,245

21,350 21,400 2,345 2,138 2,345 2,251

21,400 21,450 2,351 2,143 2,351 2,257

21,450 21,500 2,357 2,148 2,357 2,263

21,500 21,550 2,363 2,153 2,363 2,269

21,550 21,600 2,369 2,158 2,369 2,275

21,600 21,650 2,375 2,163 2,375 2,281

21,650 21,700 2,381 2,168 2,381 2,287

21,700 21,750 2,387 2,173 2,387 2,293

21,750 21,800 2,393 2,178 2,393 2,299

21,800 21,850 2,399 2,183 2,399 2,305

21,850 21,900 2,405 2,188 2,405 2,311

21,900 21,950 2,411 2,193 2,411 2,317

21,950 22,000 2,417 2,198 2,417 2,323

22,000

22,000 22,050 2,423 2,203 2,423 2,329

22,050 22,100 2,429 2,209 2,429 2,335

22,100 22,150 2,435 2,215 2,435 2,341

22,150 22,200 2,441 2,221 2,441 2,347

22,200 22,250 2,447 2,227 2,447 2,353

22,250 22,300 2,453 2,233 2,453 2,359

22,300 22,350 2,459 2,239 2,459 2,365

22,350 22,400 2,465 2,245 2,465 2,371

22,400 22,450 2,471 2,251 2,471 2,377

22,450 22,500 2,477 2,257 2,477 2,383

22,500 22,550 2,483 2,263 2,483 2,389

22,550 22,600 2,489 2,269 2,489 2,395

22,600 22,650 2,495 2,275 2,495 2,401

22,650 22,700 2,501 2,281 2,501 2,407

22,700 22,750 2,507 2,287 2,507 2,413

22,750 22,800 2,513 2,293 2,513 2,419

22,800 22,850 2,519 2,299 2,519 2,425

22,850 22,900 2,525 2,305 2,525 2,431

22,900 22,950 2,531 2,311 2,531 2,437

22,950 23,000 2,537 2,317 2,537 2,443

23,000

23,000 23,050 2,543 2,323 2,543 2,449

23,050 23,100 2,549 2,329 2,549 2,455

23,100 23,150 2,555 2,335 2,555 2,461

23,150 23,200 2,561 2,341 2,561 2,467

23,200 23,250 2,567 2,347 2,567 2,473

23,250 23,300 2,573 2,353 2,573 2,479

23,300 23,350 2,579 2,359 2,579 2,485

23,350 23,400 2,585 2,365 2,585 2,491

23,400 23,450 2,591 2,371 2,591 2,497

23,450 23,500 2,597 2,377 2,597 2,503

23,500 23,550 2,603 2,383 2,603 2,509

23,550 23,600 2,609 2,389 2,609 2,515

23,600 23,650 2,615 2,395 2,615 2,521

23,650 23,700 2,621 2,401 2,621 2,527

23,700 23,750 2,627 2,407 2,627 2,533

23,750 23,800 2,633 2,413 2,633 2,539

23,800 23,850 2,639 2,419 2,639 2,545

23,850 23,900 2,645 2,425 2,645 2,551

23,900 23,950 2,651 2,431 2,651 2,557

23,950 24,000 2,657 2,437 2,657 2,563

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

24,000

24,000 24,050 2,663 2,443 2,663 2,569

24,050 24,100 2,669 2,449 2,669 2,575

24,100 24,150 2,675 2,455 2,675 2,581

24,150 24,200 2,681 2,461 2,681 2,587

24,200 24,250 2,687 2,467 2,687 2,593

24,250 24,300 2,693 2,473 2,693 2,599

24,300 24,350 2,699 2,479 2,699 2,605

24,350 24,400 2,705 2,485 2,705 2,611

24,400 24,450 2,711 2,491 2,711 2,617

24,450 24,500 2,717 2,497 2,717 2,623

24,500 24,550 2,723 2,503 2,723 2,629

24,550 24,600 2,729 2,509 2,729 2,635

24,600 24,650 2,735 2,515 2,735 2,641

24,650 24,700 2,741 2,521 2,741 2,647

24,700 24,750 2,747 2,527 2,747 2,653

24,750 24,800 2,753 2,533 2,753 2,659

24,800 24,850 2,759 2,539 2,759 2,665

24,850 24,900 2,765 2,545 2,765 2,671

24,900 24,950 2,771 2,551 2,771 2,677

24,950 25,000 2,777 2,557 2,777 2,683

25,000

25,000 25,050 2,783 2,563 2,783 2,689

25,050 25,100 2,789 2,569 2,789 2,695

25,100 25,150 2,795 2,575 2,795 2,701

25,150 25,200 2,801 2,581 2,801 2,707

25,200 25,250 2,807 2,587 2,807 2,713

25,250 25,300 2,813 2,593 2,813 2,719

25,300 25,350 2,819 2,599 2,819 2,725

25,350 25,400 2,825 2,605 2,825 2,731

25,400 25,450 2,831 2,611 2,831 2,737

25,450 25,500 2,837 2,617 2,837 2,743

25,500 25,550 2,843 2,623 2,843 2,749

25,550 25,600 2,849 2,629 2,849 2,755

25,600 25,650 2,855 2,635 2,855 2,761

25,650 25,700 2,861 2,641 2,861 2,767

25,700 25,750 2,867 2,647 2,867 2,773

25,750 25,800 2,873 2,653 2,873 2,779

25,800 25,850 2,879 2,659 2,879 2,785

25,850 25,900 2,885 2,665 2,885 2,791

25,900 25,950 2,891 2,671 2,891 2,797

25,950 26,000 2,897 2,677 2,897 2,803

26,000

26,000 26,050 2,903 2,683 2,903 2,809

26,050 26,100 2,909 2,689 2,909 2,815

26,100 26,150 2,915 2,695 2,915 2,821

26,150 26,200 2,921 2,701 2,921 2,827

26,200 26,250 2,927 2,707 2,927 2,833

26,250 26,300 2,933 2,713 2,933 2,839

26,300 26,350 2,939 2,719 2,939 2,845

26,350 26,400 2,945 2,725 2,945 2,851

26,400 26,450 2,951 2,731 2,951 2,857

26,450 26,500 2,957 2,737 2,957 2,863

26,500 26,550 2,963 2,743 2,963 2,869

26,550 26,600 2,969 2,749 2,969 2,875

26,600 26,650 2,975 2,755 2,975 2,881

26,650 26,700 2,981 2,761 2,981 2,887

26,700 26,750 2,987 2,767 2,987 2,893

26,750 26,800 2,993 2,773 2,993 2,899

26,800 26,850 2,999 2,779 2,999 2,905

26,850 26,900 3,005 2,785 3,005 2,911

26,900 26,950 3,011 2,791 3,011 2,917

26,950 27,000 3,017 2,797 3,017 2,923

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

27,000

27,000 27,050 3,023 2,803 3,023 2,929

27,050 27,100 3,029 2,809 3,029 2,935

27,100 27,150 3,035 2,815 3,035 2,941

27,150 27,200 3,041 2,821 3,041 2,947

27,200 27,250 3,047 2,827 3,047 2,953

27,250 27,300 3,053 2,833 3,053 2,959

27,300 27,350 3,059 2,839 3,059 2,965

27,350 27,400 3,065 2,845 3,065 2,971

27,400 27,450 3,071 2,851 3,071 2,977

27,450 27,500 3,077 2,857 3,077 2,983

27,500 27,550 3,083 2,863 3,083 2,989

27,550 27,600 3,089 2,869 3,089 2,995

27,600 27,650 3,095 2,875 3,095 3,001

27,650 27,700 3,101 2,881 3,101 3,007

27,700 27,750 3,107 2,887 3,107 3,013

27,750 27,800 3,113 2,893 3,113 3,019

27,800 27,850 3,119 2,899 3,119 3,025

27,850 27,900 3,125 2,905 3,125 3,031

27,900 27,950 3,131 2,911 3,131 3,037

27,950 28,000 3,137 2,917 3,137 3,043

28,000

28,000 28,050 3,143 2,923 3,143 3,049

28,050 28,100 3,149 2,929 3,149 3,055

28,100 28,150 3,155 2,935 3,155 3,061

28,150 28,200 3,161 2,941 3,161 3,067

28,200 28,250 3,167 2,947 3,167 3,073

28,250 28,300 3,173 2,953 3,173 3,079

28,300 28,350 3,179 2,959 3,179 3,085

28,350 28,400 3,185 2,965 3,185 3,091

28,400 28,450 3,191 2,971 3,191 3,097

28,450 28,500 3,197 2,977 3,197 3,103

28,500 28,550 3,203 2,983 3,203 3,109

28,550 28,600 3,209 2,989 3,209 3,115

28,600 28,650 3,215 2,995 3,215 3,121

28,650 28,700 3,221 3,001 3,221 3,127

28,700 28,750 3,227 3,007 3,227 3,133

28,750 28,800 3,233 3,013 3,233 3,139

28,800 28,850 3,239 3,019 3,239 3,145

28,850 28,900 3,245 3,025 3,245 3,151

28,900 28,950 3,251 3,031 3,251 3,157

28,950 29,000 3,257 3,037 3,257 3,163

29,000

29,000 29,050 3,263 3,043 3,263 3,169

29,050 29,100 3,269 3,049 3,269 3,175

29,100 29,150 3,275 3,055 3,275 3,181

29,150 29,200 3,281 3,061 3,281 3,187

29,200 29,250 3,287 3,067 3,287 3,193

29,250 29,300 3,293 3,073 3,293 3,199

29,300 29,350 3,299 3,079 3,299 3,205

29,350 29,400 3,305 3,085 3,305 3,211

29,400 29,450 3,311 3,091 3,311 3,217

29,450 29,500 3,317 3,097 3,317 3,223

29,500 29,550 3,323 3,103 3,323 3,229

29,550 29,600 3,329 3,109 3,329 3,235

29,600 29,650 3,335 3,115 3,335 3,241

29,650 29,700 3,341 3,121 3,341 3,247

29,700 29,750 3,347 3,127 3,347 3,253

29,750 29,800 3,353 3,133 3,353 3,259

29,800 29,850 3,359 3,139 3,359 3,265

29,850 29,900 3,365 3,145 3,365 3,271

29,900 29,950 3,371 3,151 3,371 3,277

29,950 30,000 3,377 3,157 3,377 3,283

(Continued)

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)

115

Page 118 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

30,000

30,000 30,050 3,383 3,163 3,383 3,289

30,050 30,100 3,389 3,169 3,389 3,295

30,100 30,150 3,395 3,175 3,395 3,301

30,150 30,200 3,401 3,181 3,401 3,307

30,200 30,250 3,407 3,187 3,407 3,313

30,250 30,300 3,413 3,193 3,413 3,319

30,300 30,350 3,419 3,199 3,419 3,325

30,350 30,400 3,425 3,205 3,425 3,331

30,400 30,450 3,431 3,211 3,431 3,337

30,450 30,500 3,437 3,217 3,437 3,343

30,500 30,550 3,443 3,223 3,443 3,349

30,550 30,600 3,449 3,229 3,449 3,355

30,600 30,650 3,455 3,235 3,455 3,361

30,650 30,700 3,461 3,241 3,461 3,367

30,700 30,750 3,467 3,247 3,467 3,373

30,750 30,800 3,473 3,253 3,473 3,379

30,800 30,850 3,479 3,259 3,479 3,385

30,850 30,900 3,485 3,265 3,485 3,391

30,900 30,950 3,491 3,271 3,491 3,397

30,950 31,000 3,497 3,277 3,497 3,403

31,000

31,000 31,050 3,503 3,283 3,503 3,409

31,050 31,100 3,509 3,289 3,509 3,415

31,100 31,150 3,515 3,295 3,515 3,421

31,150 31,200 3,521 3,301 3,521 3,427

31,200 31,250 3,527 3,307 3,527 3,433

31,250 31,300 3,533 3,313 3,533 3,439

31,300 31,350 3,539 3,319 3,539 3,445

31,350 31,400 3,545 3,325 3,545 3,451

31,400 31,450 3,551 3,331 3,551 3,457

31,450 31,500 3,557 3,337 3,557 3,463

31,500 31,550 3,563 3,343 3,563 3,469

31,550 31,600 3,569 3,349 3,569 3,475

31,600 31,650 3,575 3,355 3,575 3,481

31,650 31,700 3,581 3,361 3,581 3,487

31,700 31,750 3,587 3,367 3,587 3,493

31,750 31,800 3,593 3,373 3,593 3,499

31,800 31,850 3,599 3,379 3,599 3,505

31,850 31,900 3,605 3,385 3,605 3,511

31,900 31,950 3,611 3,391 3,611 3,517

31,950 32,000 3,617 3,397 3,617 3,523

32,000

32,000 32,050 3,623 3,403 3,623 3,529

32,050 32,100 3,629 3,409 3,629 3,535

32,100 32,150 3,635 3,415 3,635 3,541

32,150 32,200 3,641 3,421 3,641 3,547

32,200 32,250 3,647 3,427 3,647 3,553

32,250 32,300 3,653 3,433 3,653 3,559

32,300 32,350 3,659 3,439 3,659 3,565

32,350 32,400 3,665 3,445 3,665 3,571

32,400 32,450 3,671 3,451 3,671 3,577

32,450 32,500 3,677 3,457 3,677 3,583

32,500 32,550 3,683 3,463 3,683 3,589

32,550 32,600 3,689 3,469 3,689 3,595

32,600 32,650 3,695 3,475 3,695 3,601

32,650 32,700 3,701 3,481 3,701 3,607

32,700 32,750 3,707 3,487 3,707 3,613

32,750 32,800 3,713 3,493 3,713 3,619

32,800 32,850 3,719 3,499 3,719 3,625

32,850 32,900 3,725 3,505 3,725 3,631

32,900 32,950 3,731 3,511 3,731 3,637

32,950 33,000 3,737 3,517 3,737 3,643

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

33,000

33,000 33,050 3,743 3,523 3,743 3,649

33,050 33,100 3,749 3,529 3,749 3,655

33,100 33,150 3,755 3,535 3,755 3,661

33,150 33,200 3,761 3,541 3,761 3,667

33,200 33,250 3,767 3,547 3,767 3,673

33,250 33,300 3,773 3,553 3,773 3,679

33,300 33,350 3,779 3,559 3,779 3,685

33,350 33,400 3,785 3,565 3,785 3,691

33,400 33,450 3,791 3,571 3,791 3,697

33,450 33,500 3,797 3,577 3,797 3,703

33,500 33,550 3,803 3,583 3,803 3,709

33,550 33,600 3,809 3,589 3,809 3,715

33,600 33,650 3,815 3,595 3,815 3,721

33,650 33,700 3,821 3,601 3,821 3,727

33,700 33,750 3,827 3,607 3,827 3,733

33,750 33,800 3,833 3,613 3,833 3,739

33,800 33,850 3,839 3,619 3,839 3,745

33,850 33,900 3,845 3,625 3,845 3,751

33,900 33,950 3,851 3,631 3,851 3,757

33,950 34,000 3,857 3,637 3,857 3,763

34,000

34,000 34,050 3,863 3,643 3,863 3,769

34,050 34,100 3,869 3,649 3,869 3,775

34,100 34,150 3,875 3,655 3,875 3,781

34,150 34,200 3,881 3,661 3,881 3,787

34,200 34,250 3,887 3,667 3,887 3,793

34,250 34,300 3,893 3,673 3,893 3,799

34,300 34,350 3,899 3,679 3,899 3,805

34,350 34,400 3,905 3,685 3,905 3,811

34,400 34,450 3,911 3,691 3,911 3,817

34,450 34,500 3,917 3,697 3,917 3,823

34,500 34,550 3,923 3,703 3,923 3,829

34,550 34,600 3,929 3,709 3,929 3,835

34,600 34,650 3,935 3,715 3,935 3,841

34,650 34,700 3,941 3,721 3,941 3,847

34,700 34,750 3,947 3,727 3,947 3,853

34,750 34,800 3,953 3,733 3,953 3,859

34,800 34,850 3,959 3,739 3,959 3,865

34,850 34,900 3,965 3,745 3,965 3,871

34,900 34,950 3,971 3,751 3,971 3,877

34,950 35,000 3,977 3,757 3,977 3,883

35,000

35,000 35,050 3,983 3,763 3,983 3,889

35,050 35,100 3,989 3,769 3,989 3,895

35,100 35,150 3,995 3,775 3,995 3,901

35,150 35,200 4,001 3,781 4,001 3,907

35,200 35,250 4,007 3,787 4,007 3,913

35,250 35,300 4,013 3,793 4,013 3,919

35,300 35,350 4,019 3,799 4,019 3,925

35,350 35,400 4,025 3,805 4,025 3,931

35,400 35,450 4,031 3,811 4,031 3,937

35,450 35,500 4,037 3,817 4,037 3,943

35,500 35,550 4,043 3,823 4,043 3,949

35,550 35,600 4,049 3,829 4,049 3,955

35,600 35,650 4,055 3,835 4,055 3,961

35,650 35,700 4,061 3,841 4,061 3,967

35,700 35,750 4,067 3,847 4,067 3,973

35,750 35,800 4,073 3,853 4,073 3,979

35,800 35,850 4,079 3,859 4,079 3,985

35,850 35,900 4,085 3,865 4,085 3,991

35,900 35,950 4,091 3,871 4,091 3,997

35,950 36,000 4,097 3,877 4,097 4,003

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

36,000

36,000 36,050 4,103 3,883 4,103 4,009

36,050 36,100 4,109 3,889 4,109 4,015

36,100 36,150 4,115 3,895 4,115 4,021

36,150 36,200 4,121 3,901 4,121 4,027

36,200 36,250 4,127 3,907 4,127 4,033

36,250 36,300 4,133 3,913 4,133 4,039

36,300 36,350 4,139 3,919 4,139 4,045

36,350 36,400 4,145 3,925 4,145 4,051

36,400 36,450 4,151 3,931 4,151 4,057

36,450 36,500 4,157 3,937 4,157 4,063

36,500 36,550 4,163 3,943 4,163 4,069

36,550 36,600 4,169 3,949 4,169 4,075

36,600 36,650 4,175 3,955 4,175 4,081

36,650 36,700 4,181 3,961 4,181 4,087

36,700 36,750 4,187 3,967 4,187 4,093

36,750 36,800 4,193 3,973 4,193 4,099

36,800 36,850 4,199 3,979 4,199 4,105

36,850 36,900 4,205 3,985 4,205 4,111

36,900 36,950 4,211 3,991 4,211 4,117

36,950 37,000 4,217 3,997 4,217 4,123

37,000

37,000 37,050 4,223 4,003 4,223 4,129

37,050 37,100 4,229 4,009 4,229 4,135

37,100 37,150 4,235 4,015 4,235 4,141

37,150 37,200 4,241 4,021 4,241 4,147

37,200 37,250 4,247 4,027 4,247 4,153

37,250 37,300 4,253 4,033 4,253 4,159

37,300 37,350 4,259 4,039 4,259 4,165

37,350 37,400 4,265 4,045 4,265 4,171

37,400 37,450 4,271 4,051 4,271 4,177

37,450 37,500 4,277 4,057 4,277 4,183

37,500 37,550 4,283 4,063 4,283 4,189

37,550 37,600 4,289 4,069 4,289 4,195

37,600 37,650 4,295 4,075 4,295 4,201

37,650 37,700 4,301 4,081 4,301 4,207

37,700 37,750 4,307 4,087 4,307 4,213

37,750 37,800 4,313 4,093 4,313 4,219

37,800 37,850 4,319 4,099 4,319 4,225

37,850 37,900 4,325 4,105 4,325 4,231

37,900 37,950 4,331 4,111 4,331 4,237

37,950 38,000 4,337 4,117 4,337 4,243

38,000

38,000 38,050 4,343 4,123 4,343 4,249

38,050 38,100 4,349 4,129 4,349 4,255

38,100 38,150 4,355 4,135 4,355 4,261

38,150 38,200 4,361 4,141 4,361 4,267

38,200 38,250 4,367 4,147 4,367 4,273

38,250 38,300 4,373 4,153 4,373 4,279

38,300 38,350 4,379 4,159 4,379 4,285

38,350 38,400 4,385 4,165 4,385 4,291

38,400 38,450 4,391 4,171 4,391 4,297

38,450 38,500 4,397 4,177 4,397 4,303

38,500 38,550 4,403 4,183 4,403 4,309

38,550 38,600 4,409 4,189 4,409 4,315

38,600 38,650 4,415 4,195 4,415 4,321

38,650 38,700 4,421 4,201 4,421 4,327

38,700 38,750 4,427 4,207 4,427 4,333

38,750 38,800 4,433 4,213 4,433 4,339

38,800 38,850 4,439 4,219 4,439 4,345

38,850 38,900 4,445 4,225 4,445 4,351

38,900 38,950 4,451 4,231 4,451 4,357

38,950 39,000 4,457 4,237 4,457 4,363

(Continued)

* This column must also be used by a qualifying surviving spouse.

116

Publication 17 (2023)

Page 119 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

39,000

39,000 39,050 4,463 4,243 4,463 4,369

39,050 39,100 4,469 4,249 4,469 4,375

39,100 39,150 4,475 4,255 4,475 4,381

39,150 39,200 4,481 4,261 4,481 4,387

39,200 39,250 4,487 4,267 4,487 4,393

39,250 39,300 4,493 4,273 4,493 4,399

39,300 39,350 4,499 4,279 4,499 4,405

39,350 39,400 4,505 4,285 4,505 4,411

39,400 39,450 4,511 4,291 4,511 4,417

39,450 39,500 4,517 4,297 4,517 4,423

39,500 39,550 4,523 4,303 4,523 4,429

39,550 39,600 4,529 4,309 4,529 4,435

39,600 39,650 4,535 4,315 4,535 4,441

39,650 39,700 4,541 4,321 4,541 4,447

39,700 39,750 4,547 4,327 4,547 4,453

39,750 39,800 4,553 4,333 4,553 4,459

39,800 39,850 4,559 4,339 4,559 4,465

39,850 39,900 4,565 4,345 4,565 4,471

39,900 39,950 4,571 4,351 4,571 4,477

39,950 40,000 4,577 4,357 4,577 4,483

40,000

40,000 40,050 4,583 4,363 4,583 4,489

40,050 40,100 4,589 4,369 4,589 4,495

40,100 40,150 4,595 4,375 4,595 4,501

40,150 40,200 4,601 4,381 4,601 4,507

40,200 40,250 4,607 4,387 4,607 4,513

40,250 40,300 4,613 4,393 4,613 4,519

40,300 40,350 4,619 4,399 4,619 4,525

40,350 40,400 4,625 4,405 4,625 4,531

40,400 40,450 4,631 4,411 4,631 4,537

40,450 40,500 4,637 4,417 4,637 4,543

40,500 40,550 4,643 4,423 4,643 4,549

40,550 40,600 4,649 4,429 4,649 4,555

40,600 40,650 4,655 4,435 4,655 4,561

40,650 40,700 4,661 4,441 4,661 4,567

40,700 40,750 4,667 4,447 4,667 4,573

40,750 40,800 4,673 4,453 4,673 4,579

40,800 40,850 4,679 4,459 4,679 4,585

40,850 40,900 4,685 4,465 4,685 4,591

40,900 40,950 4,691 4,471 4,691 4,597

40,950 41,000 4,697 4,477 4,697 4,603

41,000

41,000 41,050 4,703 4,483 4,703 4,609

41,050 41,100 4,709 4,489 4,709 4,615

41,100 41,150 4,715 4,495 4,715 4,621

41,150 41,200 4,721 4,501 4,721 4,627

41,200 41,250 4,727 4,507 4,727 4,633

41,250 41,300 4,733 4,513 4,733 4,639

41,300 41,350 4,739 4,519 4,739 4,645

41,350 41,400 4,745 4,525 4,745 4,651

41,400 41,450 4,751 4,531 4,751 4,657

41,450 41,500 4,757 4,537 4,757 4,663

41,500 41,550 4,763 4,543 4,763 4,669

41,550 41,600 4,769 4,549 4,769 4,675

41,600 41,650 4,775 4,555 4,775 4,681

41,650 41,700 4,781 4,561 4,781 4,687

41,700 41,750 4,787 4,567 4,787 4,693

41,750 41,800 4,793 4,573 4,793 4,699

41,800 41,850 4,799 4,579 4,799 4,705

41,850 41,900 4,805 4,585 4,805 4,711

41,900 41,950 4,811 4,591 4,811 4,717

41,950 42,000 4,817 4,597 4,817 4,723

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

42,000

42,000 42,050 4,823 4,603 4,823 4,729

42,050 42,100 4,829 4,609 4,829 4,735

42,100 42,150 4,835 4,615 4,835 4,741

42,150 42,200 4,841 4,621 4,841 4,747

42,200 42,250 4,847 4,627 4,847 4,753

42,250 42,300 4,853 4,633 4,853 4,759

42,300 42,350 4,859 4,639 4,859 4,765

42,350 42,400 4,865 4,645 4,865 4,771

42,400 42,450 4,871 4,651 4,871 4,777

42,450 42,500 4,877 4,657 4,877 4,783

42,500 42,550 4,883 4,663 4,883 4,789

42,550 42,600 4,889 4,669 4,889 4,795

42,600 42,650 4,895 4,675 4,895 4,801

42,650 42,700 4,901 4,681 4,901 4,807

42,700 42,750 4,907 4,687 4,907 4,813

42,750 42,800 4,913 4,693 4,913 4,819

42,800 42,850 4,919 4,699 4,919 4,825

42,850 42,900 4,925 4,705 4,925 4,831

42,900 42,950 4,931 4,711 4,931 4,837

42,950 43,000 4,937 4,717 4,937 4,843

43,000

43,000 43,050 4,943 4,723 4,943 4,849

43,050 43,100 4,949 4,729 4,949 4,855

43,100 43,150 4,955 4,735 4,955 4,861

43,150 43,200 4,961 4,741 4,961 4,867

43,200 43,250 4,967 4,747 4,967 4,873

43,250 43,300 4,973 4,753 4,973 4,879

43,300 43,350 4,979 4,759 4,979 4,885

43,350 43,400 4,985 4,765 4,985 4,891

43,400 43,450 4,991 4,771 4,991 4,897

43,450 43,500 4,997 4,777 4,997 4,903

43,500 43,550 5,003 4,783 5,003 4,909

43,550 43,600 5,009 4,789 5,009 4,915

43,600 43,650 5,015 4,795 5,015 4,921

43,650 43,700 5,021 4,801 5,021 4,927

43,700 43,750 5,027 4,807 5,027 4,933

43,750 43,800 5,033 4,813 5,033 4,939

43,800 43,850 5,039 4,819 5,039 4,945

43,850 43,900 5,045 4,825 5,045 4,951

43,900 43,950 5,051 4,831 5,051 4,957

43,950 44,000 5,057 4,837 5,057 4,963

44,000

44,000 44,050 5,063 4,843 5,063 4,969

44,050 44,100 5,069 4,849 5,069 4,975

44,100 44,150 5,075 4,855 5,075 4,981

44,150 44,200 5,081 4,861 5,081 4,987

44,200 44,250 5,087 4,867 5,087 4,993

44,250 44,300 5,093 4,873 5,093 4,999

44,300 44,350 5,099 4,879 5,099 5,005

44,350 44,400 5,105 4,885 5,105 5,011

44,400 44,450 5,111 4,891 5,111 5,017

44,450 44,500 5,117 4,897 5,117 5,023

44,500 44,550 5,123 4,903 5,123 5,029

44,550 44,600 5,129 4,909 5,129 5,035

44,600 44,650 5,135 4,915 5,135 5,041

44,650 44,700 5,141 4,921 5,141 5,047

44,700 44,750 5,147 4,927 5,147 5,053

44,750 44,800 5,158 4,933 5,158 5,059

44,800 44,850 5,169 4,939 5,169 5,065

44,850 44,900 5,180 4,945 5,180 5,071

44,900 44,950 5,191 4,951 5,191 5,077

44,950 45,000 5,202 4,957 5,202 5,083

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

45,000

45,000 45,050 5,213 4,963 5,213 5,089

45,050 45,100 5,224 4,969 5,224 5,095

45,100 45,150 5,235 4,975 5,235 5,101

45,150 45,200 5,246 4,981 5,246 5,107

45,200 45,250 5,257 4,987 5,257 5,113

45,250 45,300 5,268 4,993 5,268 5,119

45,300 45,350 5,279 4,999 5,279 5,125

45,350 45,400 5,290 5,005 5,290 5,131

45,400 45,450 5,301 5,011 5,301 5,137

45,450 45,500 5,312 5,017 5,312 5,143

45,500 45,550 5,323 5,023 5,323 5,149

45,550 45,600 5,334 5,029 5,334 5,155

45,600 45,650 5,345 5,035 5,345 5,161

45,650 45,700 5,356 5,041 5,356 5,167

45,700 45,750 5,367 5,047 5,367 5,173

45,750 45,800 5,378 5,053 5,378 5,179

45,800 45,850 5,389 5,059 5,389 5,185

45,850 45,900 5,400 5,065 5,400 5,191

45,900 45,950 5,411 5,071 5,411 5,197

45,950 46,000 5,422 5,077 5,422 5,203

46,000

46,000 46,050 5,433 5,083 5,433 5,209

46,050 46,100 5,444 5,089 5,444 5,215

46,100 46,150 5,455 5,095 5,455 5,221

46,150 46,200 5,466 5,101 5,466 5,227

46,200 46,250 5,477 5,107 5,477 5,233

46,250 46,300 5,488 5,113 5,488 5,239

46,300 46,350 5,499 5,119 5,499 5,245

46,350 46,400 5,510 5,125 5,510 5,251

46,400 46,450 5,521 5,131 5,521 5,257

46,450 46,500 5,532 5,137 5,532 5,263

46,500 46,550 5,543 5,143 5,543 5,269

46,550 46,600 5,554 5,149 5,554 5,275

46,600 46,650 5,565 5,155 5,565 5,281

46,650 46,700 5,576 5,161 5,576 5,287

46,700 46,750 5,587 5,167 5,587 5,293

46,750 46,800 5,598 5,173 5,598 5,299

46,800 46,850 5,609 5,179 5,609 5,305

46,850 46,900 5,620 5,185 5,620 5,311

46,900 46,950 5,631 5,191 5,631 5,317

46,950 47,000 5,642 5,197 5,642 5,323

47,000

47,000 47,050 5,653 5,203 5,653 5,329

47,050 47,100 5,664 5,209 5,664 5,335

47,100 47,150 5,675 5,215 5,675 5,341

47,150 47,200 5,686 5,221 5,686 5,347

47,200 47,250 5,697 5,227 5,697 5,353

47,250 47,300 5,708 5,233 5,708 5,359

47,300 47,350 5,719 5,239 5,719 5,365

47,350 47,400 5,730 5,245 5,730 5,371

47,400 47,450 5,741 5,251 5,741 5,377

47,450 47,500 5,752 5,257 5,752 5,383

47,500 47,550 5,763 5,263 5,763 5,389

47,550 47,600 5,774 5,269 5,774 5,395

47,600 47,650 5,785 5,275 5,785 5,401

47,650 47,700 5,796 5,281 5,796 5,407

47,700 47,750 5,807 5,287 5,807 5,413

47,750 47,800 5,818 5,293 5,818 5,419

47,800 47,850 5,829 5,299 5,829 5,425

47,850 47,900 5,840 5,305 5,840 5,431

47,900 47,950 5,851 5,311 5,851 5,437

47,950 48,000 5,862 5,317 5,862 5,443

(Continued)

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)

117

Page 120 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

48,000

48,000 48,050 5,873 5,323 5,873 5,449

48,050 48,100 5,884 5,329 5,884 5,455

48,100 48,150 5,895 5,335 5,895 5,461

48,150 48,200 5,906 5,341 5,906 5,467

48,200 48,250 5,917 5,347 5,917 5,473

48,250 48,300 5,928 5,353 5,928 5,479

48,300 48,350 5,939 5,359 5,939 5,485

48,350 48,400 5,950 5,365 5,950 5,491

48,400 48,450 5,961 5,371 5,961 5,497

48,450 48,500 5,972 5,377 5,972 5,503

48,500 48,550 5,983 5,383 5,983 5,509

48,550 48,600 5,994 5,389 5,994 5,515

48,600 48,650 6,005 5,395 6,005 5,521

48,650 48,700 6,016 5,401 6,016 5,527

48,700 48,750 6,027 5,407 6,027 5,533

48,750 48,800 6,038 5,413 6,038 5,539

48,800 48,850 6,049 5,419 6,049 5,545

48,850 48,900 6,060 5,425 6,060 5,551

48,900 48,950 6,071 5,431 6,071 5,557

48,950 49,000 6,082 5,437 6,082 5,563

49,000

49,000 49,050 6,093 5,443 6,093 5,569

49,050 49,100 6,104 5,449 6,104 5,575

49,100 49,150 6,115 5,455 6,115 5,581

49,150 49,200 6,126 5,461 6,126 5,587

49,200 49,250 6,137 5,467 6,137 5,593

49,250 49,300 6,148 5,473 6,148 5,599

49,300 49,350 6,159 5,479 6,159 5,605

49,350 49,400 6,170 5,485 6,170 5,611

49,400 49,450 6,181 5,491 6,181 5,617

49,450 49,500 6,192 5,497 6,192 5,623

49,500 49,550 6,203 5,503 6,203 5,629

49,550 49,600 6,214 5,509 6,214 5,635

49,600 49,650 6,225 5,515 6,225 5,641

49,650 49,700 6,236 5,521 6,236 5,647

49,700 49,750 6,247 5,527 6,247 5,653

49,750 49,800 6,258 5,533 6,258 5,659

49,800 49,850 6,269 5,539 6,269 5,665

49,850 49,900 6,280 5,545 6,280 5,671

49,900 49,950 6,291 5,551 6,291 5,677

49,950 50,000 6,302 5,557 6,302 5,683

50,000

50,000 50,050 6,313 5,563 6,313 5,689

50,050 50,100 6,324 5,569 6,324 5,695

50,100 50,150 6,335 5,575 6,335 5,701

50,150 50,200 6,346 5,581 6,346 5,707

50,200 50,250 6,357 5,587 6,357 5,713

50,250 50,300 6,368 5,593 6,368 5,719

50,300 50,350 6,379 5,599 6,379 5,725

50,350 50,400 6,390 5,605 6,390 5,731

50,400 50,450 6,401 5,611 6,401 5,737

50,450 50,500 6,412 5,617 6,412 5,743

50,500 50,550 6,423 5,623 6,423 5,749

50,550 50,600 6,434 5,629 6,434 5,755

50,600 50,650 6,445 5,635 6,445 5,761

50,650 50,700 6,456 5,641 6,456 5,767

50,700 50,750 6,467 5,647 6,467 5,773

50,750 50,800 6,478 5,653 6,478 5,779

50,800 50,850 6,489 5,659 6,489 5,785

50,850 50,900 6,500 5,665 6,500 5,791

50,900 50,950 6,511 5,671 6,511 5,797

50,950 51,000 6,522 5,677 6,522 5,803

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

51,000

51,000 51,050 6,533 5,683 6,533 5,809

51,050 51,100 6,544 5,689 6,544 5,815

51,100 51,150 6,555 5,695 6,555 5,821

51,150 51,200 6,566 5,701 6,566 5,827

51,200 51,250 6,577 5,707 6,577 5,833

51,250 51,300 6,588 5,713 6,588 5,839

51,300 51,350 6,599 5,719 6,599 5,845

51,350 51,400 6,610 5,725 6,610 5,851

51,400 51,450 6,621 5,731 6,621 5,857

51,450 51,500 6,632 5,737 6,632 5,863

51,500 51,550 6,643 5,743 6,643 5,869

51,550 51,600 6,654 5,749 6,654 5,875

51,600 51,650 6,665 5,755 6,665 5,881

51,650 51,700 6,676 5,761 6,676 5,887

51,700 51,750 6,687 5,767 6,687 5,893

51,750 51,800 6,698 5,773 6,698 5,899

51,800 51,850 6,709 5,779 6,709 5,905

51,850 51,900 6,720 5,785 6,720 5,911

51,900 51,950 6,731 5,791 6,731 5,917

51,950 52,000 6,742 5,797 6,742 5,923

52,000

52,000 52,050 6,753 5,803 6,753 5,929

52,050 52,100 6,764 5,809 6,764 5,935

52,100 52,150 6,775 5,815 6,775 5,941

52,150 52,200 6,786 5,821 6,786 5,947

52,200 52,250 6,797 5,827 6,797 5,953

52,250 52,300 6,808 5,833 6,808 5,959

52,300 52,350 6,819 5,839 6,819 5,965

52,350 52,400 6,830 5,845 6,830 5,971

52,400 52,450 6,841 5,851 6,841 5,977

52,450 52,500 6,852 5,857 6,852 5,983

52,500 52,550 6,863 5,863 6,863 5,989

52,550 52,600 6,874 5,869 6,874 5,995

52,600 52,650 6,885 5,875 6,885 6,001

52,650 52,700 6,896 5,881 6,896 6,007

52,700 52,750 6,907 5,887 6,907 6,013

52,750 52,800 6,918 5,893 6,918 6,019

52,800 52,850 6,929 5,899 6,929 6,025

52,850 52,900 6,940 5,905 6,940 6,031

52,900 52,950 6,951 5,911 6,951 6,037

52,950 53,000 6,962 5,917 6,962 6,043

53,000

53,000 53,050 6,973 5,923 6,973 6,049

53,050 53,100 6,984 5,929 6,984 6,055

53,100 53,150 6,995 5,935 6,995 6,061

53,150 53,200 7,006 5,941 7,006 6,067

53,200 53,250 7,017 5,947 7,017 6,073

53,250 53,300 7,028 5,953 7,028 6,079

53,300 53,350 7,039 5,959 7,039 6,085

53,350 53,400 7,050 5,965 7,050 6,091

53,400 53,450 7,061 5,971 7,061 6,097

53,450 53,500 7,072 5,977 7,072 6,103

53,500 53,550 7,083 5,983 7,083 6,109

53,550 53,600 7,094 5,989 7,094 6,115

53,600 53,650 7,105 5,995 7,105 6,121

53,650 53,700 7,116 6,001 7,116 6,127

53,700 53,750 7,127 6,007 7,127 6,133

53,750 53,800 7,138 6,013 7,138 6,139

53,800 53,850 7,149 6,019 7,149 6,145

53,850 53,900 7,160 6,025 7,160 6,151

53,900 53,950 7,171 6,031 7,171 6,157

53,950 54,000 7,182 6,037 7,182 6,163

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

54,000

54,000 54,050 7,193 6,043 7,193 6,169

54,050 54,100 7,204 6,049 7,204 6,175

54,100 54,150 7,215 6,055 7,215 6,181

54,150 54,200 7,226 6,061 7,226 6,187

54,200 54,250 7,237 6,067 7,237 6,193

54,250 54,300 7,248 6,073 7,248 6,199

54,300 54,350 7,259 6,079 7,259 6,205

54,350 54,400 7,270 6,085 7,270 6,211

54,400 54,450 7,281 6,091 7,281 6,217

54,450 54,500 7,292 6,097 7,292 6,223

54,500 54,550 7,303 6,103 7,303 6,229

54,550 54,600 7,314 6,109 7,314 6,235

54,600 54,650 7,325 6,115 7,325 6,241

54,650 54,700 7,336 6,121 7,336 6,247

54,700 54,750 7,347 6,127 7,347 6,253

54,750 54,800 7,358 6,133 7,358 6,259

54,800 54,850 7,369 6,139 7,369 6,265

54,850 54,900 7,380 6,145 7,380 6,271

54,900 54,950 7,391 6,151 7,391 6,277

54,950 55,000 7,402 6,157 7,402 6,283

55,000

55,000 55,050 7,413 6,163 7,413 6,289

55,050 55,100 7,424 6,169 7,424 6,295

55,100 55,150 7,435 6,175 7,435 6,301

55,150 55,200 7,446 6,181 7,446 6,307

55,200 55,250 7,457 6,187 7,457 6,313

55,250 55,300 7,468 6,193 7,468 6,319

55,300 55,350 7,479 6,199 7,479 6,325

55,350 55,400 7,490 6,205 7,490 6,331

55,400 55,450 7,501 6,211 7,501 6,337

55,450 55,500 7,512 6,217 7,512 6,343

55,500 55,550 7,523 6,223 7,523 6,349

55,550 55,600 7,534 6,229 7,534 6,355

55,600 55,650 7,545 6,235 7,545 6,361

55,650 55,700 7,556 6,241 7,556 6,367

55,700 55,750 7,567 6,247 7,567 6,373

55,750 55,800 7,578 6,253 7,578 6,379

55,800 55,850 7,589 6,259 7,589 6,385

55,850 55,900 7,600 6,265 7,600 6,391

55,900 55,950 7,611 6,271 7,611 6,397

55,950 56,000 7,622 6,277 7,622 6,403

56,000

56,000 56,050 7,633 6,283 7,633 6,409

56,050 56,100 7,644 6,289 7,644 6,415

56,100 56,150 7,655 6,295 7,655 6,421

56,150 56,200 7,666 6,301 7,666 6,427

56,200 56,250 7,677 6,307 7,677 6,433

56,250 56,300 7,688 6,313 7,688 6,439

56,300 56,350 7,699 6,319 7,699 6,445

56,350 56,400 7,710 6,325 7,710 6,451

56,400 56,450 7,721 6,331 7,721 6,457

56,450 56,500 7,732 6,337 7,732 6,463

56,500 56,550 7,743 6,343 7,743 6,469

56,550 56,600 7,754 6,349 7,754 6,475

56,600 56,650 7,765 6,355 7,765 6,481

56,650 56,700 7,776 6,361 7,776 6,487

56,700 56,750 7,787 6,367 7,787 6,493

56,750 56,800 7,798 6,373 7,798 6,499

56,800 56,850 7,809 6,379 7,809 6,505

56,850 56,900 7,820 6,385 7,820 6,511

56,900 56,950 7,831 6,391 7,831 6,517

56,950 57,000 7,842 6,397 7,842 6,523

(Continued)

* This column must also be used by a qualifying surviving spouse.

118

Publication 17 (2023)

Page 121 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

57,000

57,000 57,050 7,853 6,403 7,853 6,529

57,050 57,100 7,864 6,409 7,864 6,535

57,100 57,150 7,875 6,415 7,875 6,541

57,150 57,200 7,886 6,421 7,886 6,547

57,200 57,250 7,897 6,427 7,897 6,553

57,250 57,300 7,908 6,433 7,908 6,559

57,300 57,350 7,919 6,439 7,919 6,565

57,350 57,400 7,930 6,445 7,930 6,571

57,400 57,450 7,941 6,451 7,941 6,577

57,450 57,500 7,952 6,457 7,952 6,583

57,500 57,550 7,963 6,463 7,963 6,589

57,550 57,600 7,974 6,469 7,974 6,595

57,600 57,650 7,985 6,475 7,985 6,601

57,650 57,700 7,996 6,481 7,996 6,607

57,700 57,750 8,007 6,487 8,007 6,613

57,750 57,800 8,018 6,493 8,018 6,619

57,800 57,850 8,029 6,499 8,029 6,625

57,850 57,900 8,040 6,505 8,040 6,631

57,900 57,950 8,051 6,511 8,051 6,637

57,950 58,000 8,062 6,517 8,062 6,643

58,000

58,000 58,050 8,073 6,523 8,073 6,649

58,050 58,100 8,084 6,529 8,084 6,655

58,100 58,150 8,095 6,535 8,095 6,661

58,150 58,200 8,106 6,541 8,106 6,667

58,200 58,250 8,117 6,547 8,117 6,673

58,250 58,300 8,128 6,553 8,128 6,679

58,300 58,350 8,139 6,559 8,139 6,685

58,350 58,400 8,150 6,565 8,150 6,691

58,400 58,450 8,161 6,571 8,161 6,697

58,450 58,500 8,172 6,577 8,172 6,703

58,500 58,550 8,183 6,583 8,183 6,709

58,550 58,600 8,194 6,589 8,194 6,715

58,600 58,650 8,205 6,595 8,205 6,721

58,650 58,700 8,216 6,601 8,216 6,727

58,700 58,750 8,227 6,607 8,227 6,733

58,750 58,800 8,238 6,613 8,238 6,739

58,800 58,850 8,249 6,619 8,249 6,745

58,850 58,900 8,260 6,625 8,260 6,751

58,900 58,950 8,271 6,631 8,271 6,757

58,950 59,000 8,282 6,637 8,282 6,763

59,000

59,000 59,050 8,293 6,643 8,293 6,769

59,050 59,100 8,304 6,649 8,304 6,775

59,100 59,150 8,315 6,655 8,315 6,781

59,150 59,200 8,326 6,661 8,326 6,787

59,200 59,250 8,337 6,667 8,337 6,793

59,250 59,300 8,348 6,673 8,348 6,799

59,300 59,350 8,359 6,679 8,359 6,805

59,350 59,400 8,370 6,685 8,370 6,811

59,400 59,450 8,381 6,691 8,381 6,817

59,450 59,500 8,392 6,697 8,392 6,823

59,500 59,550 8,403 6,703 8,403 6,829

59,550 59,600 8,414 6,709 8,414 6,835

59,600 59,650 8,425 6,715 8,425 6,841

59,650 59,700 8,436 6,721 8,436 6,847

59,700 59,750 8,447 6,727 8,447 6,853

59,750 59,800 8,458 6,733 8,458 6,859

59,800 59,850 8,469 6,739 8,469 6,865

59,850 59,900 8,480 6,745 8,480 6,874

59,900 59,950 8,491 6,751 8,491 6,885

59,950 60,000 8,502 6,757 8,502 6,896

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

60,000

60,000 60,050 8,513 6,763 8,513 6,907

60,050 60,100 8,524 6,769 8,524 6,918

60,100 60,150 8,535 6,775 8,535 6,929

60,150 60,200 8,546 6,781 8,546 6,940

60,200 60,250 8,557 6,787 8,557 6,951

60,250 60,300 8,568 6,793 8,568 6,962

60,300 60,350 8,579 6,799 8,579 6,973

60,350 60,400 8,590 6,805 8,590 6,984

60,400 60,450 8,601 6,811 8,601 6,995

60,450 60,500 8,612 6,817 8,612 7,006

60,500 60,550 8,623 6,823 8,623 7,017

60,550 60,600 8,634 6,829 8,634 7,028

60,600 60,650 8,645 6,835 8,645 7,039

60,650 60,700 8,656 6,841 8,656 7,050

60,700 60,750 8,667 6,847 8,667 7,061

60,750 60,800 8,678 6,853 8,678 7,072

60,800 60,850 8,689 6,859 8,689 7,083

60,850 60,900 8,700 6,865 8,700 7,094

60,900 60,950 8,711 6,871 8,711 7,105

60,950 61,000 8,722 6,877 8,722 7,116

61,000

61,000 61,050 8,733 6,883 8,733 7,127

61,050 61,100 8,744 6,889 8,744 7,138

61,100 61,150 8,755 6,895 8,755 7,149

61,150 61,200 8,766 6,901 8,766 7,160

61,200 61,250 8,777 6,907 8,777 7,171

61,250 61,300 8,788 6,913 8,788 7,182

61,300 61,350 8,799 6,919 8,799 7,193

61,350 61,400 8,810 6,925 8,810 7,204

61,400 61,450 8,821 6,931 8,821 7,215

61,450 61,500 8,832 6,937 8,832 7,226

61,500 61,550 8,843 6,943 8,843 7,237

61,550 61,600 8,854 6,949 8,854 7,248

61,600 61,650 8,865 6,955 8,865 7,259

61,650 61,700 8,876 6,961 8,876 7,270

61,700 61,750 8,887 6,967 8,887 7,281

61,750 61,800 8,898 6,973 8,898 7,292

61,800 61,850 8,909 6,979 8,909 7,303

61,850 61,900 8,920 6,985 8,920 7,314

61,900 61,950 8,931 6,991 8,931 7,325

61,950 62,000 8,942 6,997 8,942 7,336

62,000

62,000 62,050 8,953 7,003 8,953 7,347

62,050 62,100 8,964 7,009 8,964 7,358

62,100 62,150 8,975 7,015 8,975 7,369

62,150 62,200 8,986 7,021 8,986 7,380

62,200 62,250 8,997 7,027 8,997 7,391

62,250 62,300 9,008 7,033 9,008 7,402

62,300 62,350 9,019 7,039 9,019 7,413

62,350 62,400 9,030 7,045 9,030 7,424

62,400 62,450 9,041 7,051 9,041 7,435

62,450 62,500 9,052 7,057 9,052 7,446

62,500 62,550 9,063 7,063 9,063 7,457

62,550 62,600 9,074 7,069 9,074 7,468

62,600 62,650 9,085 7,075 9,085 7,479

62,650 62,700 9,096 7,081 9,096 7,490

62,700 62,750 9,107 7,087 9,107 7,501

62,750 62,800 9,118 7,093 9,118 7,512

62,800 62,850 9,129 7,099 9,129 7,523

62,850 62,900 9,140 7,105 9,140 7,534

62,900 62,950 9,151 7,111 9,151 7,545

62,950 63,000 9,162 7,117 9,162 7,556

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

63,000

63,000 63,050 9,173 7,123 9,173 7,567

63,050 63,100 9,184 7,129 9,184 7,578

63,100 63,150 9,195 7,135 9,195 7,589

63,150 63,200 9,206 7,141 9,206 7,600

63,200 63,250 9,217 7,147 9,217 7,611

63,250 63,300 9,228 7,153 9,228 7,622

63,300 63,350 9,239 7,159 9,239 7,633

63,350 63,400 9,250 7,165 9,250 7,644

63,400 63,450 9,261 7,171 9,261 7,655

63,450 63,500 9,272 7,177 9,272 7,666

63,500 63,550 9,283 7,183 9,283 7,677

63,550 63,600 9,294 7,189 9,294 7,688

63,600 63,650 9,305 7,195 9,305 7,699

63,650 63,700 9,316 7,201 9,316 7,710

63,700 63,750 9,327 7,207 9,327 7,721

63,750 63,800 9,338 7,213 9,338 7,732

63,800 63,850 9,349 7,219 9,349 7,743

63,850 63,900 9,360 7,225 9,360 7,754

63,900 63,950 9,371 7,231 9,371 7,765

63,950 64,000 9,382 7,237 9,382 7,776

64,000

64,000 64,050 9,393 7,243 9,393 7,787

64,050 64,100 9,404 7,249 9,404 7,798

64,100 64,150 9,415 7,255 9,415 7,809

64,150 64,200 9,426 7,261 9,426 7,820

64,200 64,250 9,437 7,267 9,437 7,831

64,250 64,300 9,448 7,273 9,448 7,842

64,300 64,350 9,459 7,279 9,459 7,853

64,350 64,400 9,470 7,285 9,470 7,864

64,400 64,450 9,481 7,291 9,481 7,875

64,450 64,500 9,492 7,297 9,492 7,886

64,500 64,550 9,503 7,303 9,503 7,897

64,550 64,600 9,514 7,309 9,514 7,908

64,600 64,650 9,525 7,315 9,525 7,919

64,650 64,700 9,536 7,321 9,536 7,930

64,700 64,750 9,547 7,327 9,547 7,941

64,750 64,800 9,558 7,333 9,558 7,952

64,800 64,850 9,569 7,339 9,569 7,963

64,850 64,900 9,580 7,345 9,580 7,974

64,900 64,950 9,591 7,351 9,591 7,985

64,950 65,000 9,602 7,357 9,602 7,996

65,000

65,000 65,050 9,613 7,363 9,613 8,007

65,050 65,100 9,624 7,369 9,624 8,018

65,100 65,150 9,635 7,375 9,635 8,029

65,150 65,200 9,646 7,381 9,646 8,040

65,200 65,250 9,657 7,387 9,657 8,051

65,250 65,300 9,668 7,393 9,668 8,062

65,300 65,350 9,679 7,399 9,679 8,073

65,350 65,400 9,690 7,405 9,690 8,084

65,400 65,450 9,701 7,411 9,701 8,095

65,450 65,500 9,712 7,417 9,712 8,106

65,500 65,550 9,723 7,423 9,723 8,117

65,550 65,600 9,734 7,429 9,734 8,128

65,600 65,650 9,745 7,435 9,745 8,139

65,650 65,700 9,756 7,441 9,756 8,150

65,700 65,750 9,767 7,447 9,767 8,161

65,750 65,800 9,778 7,453 9,778 8,172

65,800 65,850 9,789 7,459 9,789 8,183

65,850 65,900 9,800 7,465 9,800 8,194

65,900 65,950 9,811 7,471 9,811 8,205

65,950 66,000 9,822 7,477 9,822 8,216

(Continued)

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)

119

Page 122 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

66,000

66,000 66,050 9,833 7,483 9,833 8,227

66,050 66,100 9,844 7,489 9,844 8,238

66,100 66,150 9,855 7,495 9,855 8,249

66,150 66,200 9,866 7,501 9,866 8,260

66,200 66,250 9,877 7,507 9,877 8,271

66,250 66,300 9,888 7,513 9,888 8,282

66,300 66,350 9,899 7,519 9,899 8,293

66,350 66,400 9,910 7,525 9,910 8,304

66,400 66,450 9,921 7,531 9,921 8,315

66,450 66,500 9,932 7,537 9,932 8,326

66,500 66,550 9,943 7,543 9,943 8,337

66,550 66,600 9,954 7,549 9,954 8,348

66,600 66,650 9,965 7,555 9,965 8,359

66,650 66,700 9,976 7,561 9,976 8,370

66,700 66,750 9,987 7,567 9,987 8,381

66,750 66,800 9,998 7,573 9,998 8,392

66,800 66,850 10,009 7,579 10,009 8,403

66,850 66,900 10,020 7,585 10,020 8,414

66,900 66,950 10,031 7,591 10,031 8,425

66,950 67,000 10,042 7,597 10,042 8,436

67,000

67,000 67,050 10,053 7,603 10,053 8,447

67,050 67,100 10,064 7,609 10,064 8,458

67,100 67,150 10,075 7,615 10,075 8,469

67,150 67,200 10,086 7,621 10,086 8,480

67,200 67,250 10,097 7,627 10,097 8,491

67,250 67,300 10,108 7,633 10,108 8,502

67,300 67,350 10,119 7,639 10,119 8,513

67,350 67,400 10,130 7,645 10,130 8,524

67,400 67,450 10,141 7,651 10,141 8,535

67,450 67,500 10,152 7,657 10,152 8,546

67,500 67,550 10,163 7,663 10,163 8,557

67,550 67,600 10,174 7,669 10,174 8,568

67,600 67,650 10,185 7,675 10,185 8,579

67,650 67,700 10,196 7,681 10,196 8,590

67,700 67,750 10,207 7,687 10,207 8,601

67,750 67,800 10,218 7,693 10,218 8,612

67,800 67,850 10,229 7,699 10,229 8,623

67,850 67,900 10,240 7,705 10,240 8,634

67,900 67,950 10,251 7,711 10,251 8,645

67,950 68,000 10,262 7,717 10,262 8,656

68,000

68,000 68,050 10,273 7,723 10,273 8,667

68,050 68,100 10,284 7,729 10,284 8,678

68,100 68,150 10,295 7,735 10,295 8,689

68,150 68,200 10,306 7,741 10,306 8,700

68,200 68,250 10,317 7,747 10,317 8,711

68,250 68,300 10,328 7,753 10,328 8,722

68,300 68,350 10,339 7,759 10,339 8,733

68,350 68,400 10,350 7,765 10,350 8,744

68,400 68,450 10,361 7,771 10,361 8,755

68,450 68,500 10,372 7,777 10,372 8,766

68,500 68,550 10,383 7,783 10,383 8,777

68,550 68,600 10,394 7,789 10,394 8,788

68,600 68,650 10,405 7,795 10,405 8,799

68,650 68,700 10,416 7,801 10,416 8,810

68,700 68,750 10,427 7,807 10,427 8,821

68,750 68,800 10,438 7,813 10,438 8,832

68,800 68,850 10,449 7,819 10,449 8,843

68,850 68,900 10,460 7,825 10,460 8,854

68,900 68,950 10,471 7,831 10,471 8,865

68,950 69,000 10,482 7,837 10,482 8,876

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

69,000

69,000 69,050 10,493 7,843 10,493 8,887

69,050 69,100 10,504 7,849 10,504 8,898

69,100 69,150 10,515 7,855 10,515 8,909

69,150 69,200 10,526 7,861 10,526 8,920

69,200 69,250 10,537 7,867 10,537 8,931

69,250 69,300 10,548 7,873 10,548 8,942

69,300 69,350 10,559 7,879 10,559 8,953

69,350 69,400 10,570 7,885 10,570 8,964

69,400 69,450 10,581 7,891 10,581 8,975

69,450 69,500 10,592 7,897 10,592 8,986

69,500 69,550 10,603 7,903 10,603 8,997

69,550 69,600 10,614 7,909 10,614 9,008

69,600 69,650 10,625 7,915 10,625 9,019

69,650 69,700 10,636 7,921 10,636 9,030

69,700 69,750 10,647 7,927 10,647 9,041

69,750 69,800 10,658 7,933 10,658 9,052

69,800 69,850 10,669 7,939 10,669 9,063

69,850 69,900 10,680 7,945 10,680 9,074

69,900 69,950 10,691 7,951 10,691 9,085

69,950 70,000 10,702 7,957 10,702 9,096

70,000

70,000 70,050 10,713 7,963 10,713 9,107

70,050 70,100 10,724 7,969 10,724 9,118

70,100 70,150 10,735 7,975 10,735 9,129

70,150 70,200 10,746 7,981 10,746 9,140

70,200 70,250 10,757 7,987 10,757 9,151

70,250 70,300 10,768 7,993 10,768 9,162

70,300 70,350 10,779 7,999 10,779 9,173

70,350 70,400 10,790 8,005 10,790 9,184

70,400 70,450 10,801 8,011 10,801 9,195

70,450 70,500 10,812 8,017 10,812 9,206

70,500 70,550 10,823 8,023 10,823 9,217

70,550 70,600 10,834 8,029 10,834 9,228

70,600 70,650 10,845 8,035 10,845 9,239

70,650 70,700 10,856 8,041 10,856 9,250

70,700 70,750 10,867 8,047 10,867 9,261

70,750 70,800 10,878 8,053 10,878 9,272

70,800 70,850 10,889 8,059 10,889 9,283

70,850 70,900 10,900 8,065 10,900 9,294

70,900 70,950 10,911 8,071 10,911 9,305

70,950 71,000 10,922 8,077 10,922 9,316

71,000

71,000 71,050 10,933 8,083 10,933 9,327

71,050 71,100 10,944 8,089 10,944 9,338

71,100 71,150 10,955 8,095 10,955 9,349

71,150 71,200 10,966 8,101 10,966 9,360

71,200 71,250 10,977 8,107 10,977 9,371

71,250 71,300 10,988 8,113 10,988 9,382

71,300 71,350 10,999 8,119 10,999 9,393

71,350 71,400 11,010 8,125 11,010 9,404

71,400 71,450 11,021 8,131 11,021 9,415

71,450 71,500 11,032 8,137 11,032 9,426

71,500 71,550 11,043 8,143 11,043 9,437

71,550 71,600 11,054 8,149 11,054 9,448

71,600 71,650 11,065 8,155 11,065 9,459

71,650 71,700 11,076 8,161 11,076 9,470

71,700 71,750 11,087 8,167 11,087 9,481

71,750 71,800 11,098 8,173 11,098 9,492

71,800 71,850 11,109 8,179 11,109 9,503

71,850 71,900 11,120 8,185 11,120 9,514

71,900 71,950 11,131 8,191 11,131 9,525

71,950 72,000 11,142 8,197 11,142 9,536

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

72,000

72,000 72,050 11,153 8,203 11,153 9,547

72,050 72,100 11,164 8,209 11,164 9,558

72,100 72,150 11,175 8,215 11,175 9,569

72,150 72,200 11,186 8,221 11,186 9,580

72,200 72,250 11,197 8,227 11,197 9,591

72,250 72,300 11,208 8,233 11,208 9,602

72,300 72,350 11,219 8,239 11,219 9,613

72,350 72,400 11,230 8,245 11,230 9,624

72,400 72,450 11,241 8,251 11,241 9,635

72,450 72,500 11,252 8,257 11,252 9,646

72,500 72,550 11,263 8,263 11,263 9,657

72,550 72,600 11,274 8,269 11,274 9,668

72,600 72,650 11,285 8,275 11,285 9,679

72,650 72,700 11,296 8,281 11,296 9,690

72,700 72,750 11,307 8,287 11,307 9,701

72,750 72,800 11,318 8,293 11,318 9,712

72,800 72,850 11,329 8,299 11,329 9,723

72,850 72,900 11,340 8,305 11,340 9,734

72,900 72,950 11,351 8,311 11,351 9,745

72,950 73,000 11,362 8,317 11,362 9,756

73,000

73,000 73,050 11,373 8,323 11,373 9,767

73,050 73,100 11,384 8,329 11,384 9,778

73,100 73,150 11,395 8,335 11,395 9,789

73,150 73,200 11,406 8,341 11,406 9,800

73,200 73,250 11,417 8,347 11,417 9,811

73,250 73,300 11,428 8,353 11,428 9,822

73,300 73,350 11,439 8,359 11,439 9,833

73,350 73,400 11,450 8,365 11,450 9,844

73,400 73,450 11,461 8,371 11,461 9,855

73,450 73,500 11,472 8,377 11,472 9,866

73,500 73,550 11,483 8,383 11,483 9,877

73,550 73,600 11,494 8,389 11,494 9,888

73,600 73,650 11,505 8,395 11,505 9,899

73,650 73,700 11,516 8,401 11,516 9,910

73,700 73,750 11,527 8,407 11,527 9,921

73,750 73,800 11,538 8,413 11,538 9,932

73,800 73,850 11,549 8,419 11,549 9,943

73,850 73,900 11,560 8,425 11,560 9,954

73,900 73,950 11,571 8,431 11,571 9,965

73,950 74,000 11,582 8,437 11,582 9,976

74,000

74,000 74,050 11,593 8,443 11,593 9,987

74,050 74,100 11,604 8,449 11,604 9,998

74,100 74,150 11,615 8,455 11,615 10,009

74,150 74,200 11,626 8,461 11,626 10,020

74,200 74,250 11,637 8,467 11,637 10,031

74,250 74,300 11,648 8,473 11,648 10,042

74,300 74,350 11,659 8,479 11,659 10,053

74,350 74,400 11,670 8,485 11,670 10,064

74,400 74,450 11,681 8,491 11,681 10,075

74,450 74,500 11,692 8,497 11,692 10,086

74,500 74,550 11,703 8,503 11,703 10,097

74,550 74,600 11,714 8,509 11,714 10,108

74,600 74,650 11,725 8,515 11,725 10,119

74,650 74,700 11,736 8,521 11,736 10,130

74,700 74,750 11,747 8,527 11,747 10,141

74,750 74,800 11,758 8,533 11,758 10,152

74,800 74,850 11,769 8,539 11,769 10,163

74,850 74,900 11,780 8,545 11,780 10,174

74,900 74,950 11,791 8,551 11,791 10,185

74,950 75,000 11,802 8,557 11,802 10,196

(Continued)

* This column must also be used by a qualifying surviving spouse.

120

Publication 17 (2023)

Page 123 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

75,000

75,000 75,050 11,813 8,563 11,813 10,207

75,050 75,100 11,824 8,569 11,824 10,218

75,100 75,150 11,835 8,575 11,835 10,229

75,150 75,200 11,846 8,581 11,846 10,240

75,200 75,250 11,857 8,587 11,857 10,251

75,250 75,300 11,868 8,593 11,868 10,262

75,300 75,350 11,879 8,599 11,879 10,273

75,350 75,400 11,890 8,605 11,890 10,284

75,400 75,450 11,901 8,611 11,901 10,295

75,450 75,500 11,912 8,617 11,912 10,306

75,500 75,550 11,923 8,623 11,923 10,317

75,550 75,600 11,934 8,629 11,934 10,328

75,600 75,650 11,945 8,635 11,945 10,339

75,650 75,700 11,956 8,641 11,956 10,350

75,700 75,750 11,967 8,647 11,967 10,361

75,750 75,800 11,978 8,653 11,978 10,372

75,800 75,850 11,989 8,659 11,989 10,383

75,850 75,900 12,000 8,665 12,000 10,394

75,900 75,950 12,011 8,671 12,011 10,405

75,950 76,000 12,022 8,677 12,022 10,416

76,000

76,000 76,050 12,033 8,683 12,033 10,427

76,050 76,100 12,044 8,689 12,044 10,438

76,100 76,150 12,055 8,695 12,055 10,449

76,150 76,200 12,066 8,701 12,066 10,460

76,200 76,250 12,077 8,707 12,077 10,471

76,250 76,300 12,088 8,713 12,088 10,482

76,300 76,350 12,099 8,719 12,099 10,493

76,350 76,400 12,110 8,725 12,110 10,504

76,400 76,450 12,121 8,731 12,121 10,515

76,450 76,500 12,132 8,737 12,132 10,526

76,500 76,550 12,143 8,743 12,143 10,537

76,550 76,600 12,154 8,749 12,154 10,548

76,600 76,650 12,165 8,755 12,165 10,559

76,650 76,700 12,176 8,761 12,176 10,570

76,700 76,750 12,187 8,767 12,187 10,581

76,750 76,800 12,198 8,773 12,198 10,592

76,800 76,850 12,209 8,779 12,209 10,603

76,850 76,900 12,220 8,785 12,220 10,614

76,900 76,950 12,231 8,791 12,231 10,625

76,950 77,000 12,242 8,797 12,242 10,636

77,000

77,000 77,050 12,253 8,803 12,253 10,647

77,050 77,100 12,264 8,809 12,264 10,658

77,100 77,150 12,275 8,815 12,275 10,669

77,150 77,200 12,286 8,821 12,286 10,680

77,200 77,250 12,297 8,827 12,297 10,691

77,250 77,300 12,308 8,833 12,308 10,702

77,300 77,350 12,319 8,839 12,319 10,713

77,350 77,400 12,330 8,845 12,330 10,724

77,400 77,450 12,341 8,851 12,341 10,735

77,450 77,500 12,352 8,857 12,352 10,746

77,500 77,550 12,363 8,863 12,363 10,757

77,550 77,600 12,374 8,869 12,374 10,768

77,600 77,650 12,385 8,875 12,385 10,779

77,650 77,700 12,396 8,881 12,396 10,790

77,700 77,750 12,407 8,887 12,407 10,801

77,750 77,800 12,418 8,893 12,418 10,812

77,800 77,850 12,429 8,899 12,429 10,823

77,850 77,900 12,440 8,905 12,440 10,834

77,900 77,950 12,451 8,911 12,451 10,845

77,950 78,000 12,462 8,917 12,462 10,856

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

78,000

78,000 78,050 12,473 8,923 12,473 10,867

78,050 78,100 12,484 8,929 12,484 10,878

78,100 78,150 12,495 8,935 12,495 10,889

78,150 78,200 12,506 8,941 12,506 10,900

78,200 78,250 12,517 8,947 12,517 10,911

78,250 78,300 12,528 8,953 12,528 10,922

78,300 78,350 12,539 8,959 12,539 10,933

78,350 78,400 12,550 8,965 12,550 10,944

78,400 78,450 12,561 8,971 12,561 10,955

78,450 78,500 12,572 8,977 12,572 10,966

78,500 78,550 12,583 8,983 12,583 10,977

78,550 78,600 12,594 8,989 12,594 10,988

78,600 78,650 12,605 8,995 12,605 10,999

78,650 78,700 12,616 9,001 12,616 11,010

78,700 78,750 12,627 9,007 12,627 11,021

78,750 78,800 12,638 9,013 12,638 11,032

78,800 78,850 12,649 9,019 12,649 11,043

78,850 78,900 12,660 9,025 12,660 11,054

78,900 78,950 12,671 9,031 12,671 11,065

78,950 79,000 12,682 9,037 12,682 11,076

79,000

79,000 79,050 12,693 9,043 12,693 11,087

79,050 79,100 12,704 9,049 12,704 11,098

79,100 79,150 12,715 9,055 12,715 11,109

79,150 79,200 12,726 9,061 12,726 11,120

79,200 79,250 12,737 9,067 12,737 11,131

79,250 79,300 12,748 9,073 12,748 11,142

79,300 79,350 12,759 9,079 12,759 11,153

79,350 79,400 12,770 9,085 12,770 11,164

79,400 79,450 12,781 9,091 12,781 11,175

79,450 79,500 12,792 9,097 12,792 11,186

79,500 79,550 12,803 9,103 12,803 11,197

79,550 79,600 12,814 9,109 12,814 11,208

79,600 79,650 12,825 9,115 12,825 11,219

79,650 79,700 12,836 9,121 12,836 11,230

79,700 79,750 12,847 9,127 12,847 11,241

79,750 79,800 12,858 9,133 12,858 11,252

79,800 79,850 12,869 9,139 12,869 11,263

79,850 79,900 12,880 9,145 12,880 11,274

79,900 79,950 12,891 9,151 12,891 11,285

79,950 80,000 12,902 9,157 12,902 11,296

80,000

80,000 80,050 12,913 9,163 12,913 11,307

80,050 80,100 12,924 9,169 12,924 11,318

80,100 80,150 12,935 9,175 12,935 11,329

80,150 80,200 12,946 9,181 12,946 11,340

80,200 80,250 12,957 9,187 12,957 11,351

80,250 80,300 12,968 9,193 12,968 11,362

80,300 80,350 12,979 9,199 12,979 11,373

80,350 80,400 12,990 9,205 12,990 11,384

80,400 80,450 13,001 9,211 13,001 11,395

80,450 80,500 13,012 9,217 13,012 11,406

80,500 80,550 13,023 9,223 13,023 11,417

80,550 80,600 13,034 9,229 13,034 11,428

80,600 80,650 13,045 9,235 13,045 11,439

80,650 80,700 13,056 9,241 13,056 11,450

80,700 80,750 13,067 9,247 13,067 11,461

80,750 80,800 13,078 9,253 13,078 11,472

80,800 80,850 13,089 9,259 13,089 11,483

80,850 80,900 13,100 9,265 13,100 11,494

80,900 80,950 13,111 9,271 13,111 11,505

80,950 81,000 13,122 9,277 13,122 11,516

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

81,000

81,000 81,050 13,133 9,283 13,133 11,527

81,050 81,100 13,144 9,289 13,144 11,538

81,100 81,150 13,155 9,295 13,155 11,549

81,150 81,200 13,166 9,301 13,166 11,560

81,200 81,250 13,177 9,307 13,177 11,571

81,250 81,300 13,188 9,313 13,188 11,582

81,300 81,350 13,199 9,319 13,199 11,593

81,350 81,400 13,210 9,325 13,210 11,604

81,400 81,450 13,221 9,331 13,221 11,615

81,450 81,500 13,232 9,337 13,232 11,626

81,500 81,550 13,243 9,343 13,243 11,637

81,550 81,600 13,254 9,349 13,254 11,648

81,600 81,650 13,265 9,355 13,265 11,659

81,650 81,700 13,276 9,361 13,276 11,670

81,700 81,750 13,287 9,367 13,287 11,681

81,750 81,800 13,298 9,373 13,298 11,692

81,800 81,850 13,309 9,379 13,309 11,703

81,850 81,900 13,320 9,385 13,320 11,714

81,900 81,950 13,331 9,391 13,331 11,725

81,950 82,000 13,342 9,397 13,342 11,736

82,000

82,000 82,050 13,353 9,403 13,353 11,747

82,050 82,100 13,364 9,409 13,364 11,758

82,100 82,150 13,375 9,415 13,375 11,769

82,150 82,200 13,386 9,421 13,386 11,780

82,200 82,250 13,397 9,427 13,397 11,791

82,250 82,300 13,408 9,433 13,408 11,802

82,300 82,350 13,419 9,439 13,419 11,813

82,350 82,400 13,430 9,445 13,430 11,824

82,400 82,450 13,441 9,451 13,441 11,835

82,450 82,500 13,452 9,457 13,452 11,846

82,500 82,550 13,463 9,463 13,463 11,857

82,550 82,600 13,474 9,469 13,474 11,868

82,600 82,650 13,485 9,475 13,485 11,879

82,650 82,700 13,496 9,481 13,496 11,890

82,700 82,750 13,507 9,487 13,507 11,901

82,750 82,800 13,518 9,493 13,518 11,912

82,800 82,850 13,529 9,499 13,529 11,923

82,850 82,900 13,540 9,505 13,540 11,934

82,900 82,950 13,551 9,511 13,551 11,945

82,950 83,000 13,562 9,517 13,562 11,956

83,000

83,000 83,050 13,573 9,523 13,573 11,967

83,050 83,100 13,584 9,529 13,584 11,978

83,100 83,150 13,595 9,535 13,595 11,989

83,150 83,200 13,606 9,541 13,606 12,000

83,200 83,250 13,617 9,547 13,617 12,011

83,250 83,300 13,628 9,553 13,628 12,022

83,300 83,350 13,639 9,559 13,639 12,033

83,350 83,400 13,650 9,565 13,650 12,044

83,400 83,450 13,661 9,571 13,661 12,055

83,450 83,500 13,672 9,577 13,672 12,066

83,500 83,550 13,683 9,583 13,683 12,077

83,550 83,600 13,694 9,589 13,694 12,088

83,600 83,650 13,705 9,595 13,705 12,099

83,650 83,700 13,716 9,601 13,716 12,110

83,700 83,750 13,727 9,607 13,727 12,121

83,750 83,800 13,738 9,613 13,738 12,132

83,800 83,850 13,749 9,619 13,749 12,143

83,850 83,900 13,760 9,625 13,760 12,154

83,900 83,950 13,771 9,631 13,771 12,165

83,950 84,000 13,782 9,637 13,782 12,176

(Continued)

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)

121

Page 124 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

84,000

84,000 84,050 13,793 9,643 13,793 12,187

84,050 84,100 13,804 9,649 13,804 12,198

84,100 84,150 13,815 9,655 13,815 12,209

84,150 84,200 13,826 9,661 13,826 12,220

84,200 84,250 13,837 9,667 13,837 12,231

84,250 84,300 13,848 9,673 13,848 12,242

84,300 84,350 13,859 9,679 13,859 12,253

84,350 84,400 13,870 9,685 13,870 12,264

84,400 84,450 13,881 9,691 13,881 12,275

84,450 84,500 13,892 9,697 13,892 12,286

84,500 84,550 13,903 9,703 13,903 12,297

84,550 84,600 13,914 9,709 13,914 12,308

84,600 84,650 13,925 9,715 13,925 12,319

84,650 84,700 13,936 9,721 13,936 12,330

84,700 84,750 13,947 9,727 13,947 12,341

84,750 84,800 13,958 9,733 13,958 12,352

84,800 84,850 13,969 9,739 13,969 12,363

84,850 84,900 13,980 9,745 13,980 12,374

84,900 84,950 13,991 9,751 13,991 12,385

84,950 85,000 14,002 9,757 14,002 12,396

85,000

85,000 85,050 14,013 9,763 14,013 12,407

85,050 85,100 14,024 9,769 14,024 12,418

85,100 85,150 14,035 9,775 14,035 12,429

85,150 85,200 14,046 9,781 14,046 12,440

85,200 85,250 14,057 9,787 14,057 12,451

85,250 85,300 14,068 9,793 14,068 12,462

85,300 85,350 14,079 9,799 14,079 12,473

85,350 85,400 14,090 9,805 14,090 12,484

85,400 85,450 14,101 9,811 14,101 12,495

85,450 85,500 14,112 9,817 14,112 12,506

85,500 85,550 14,123 9,823 14,123 12,517

85,550 85,600 14,134 9,829 14,134 12,528

85,600 85,650 14,145 9,835 14,145 12,539

85,650 85,700 14,156 9,841 14,156 12,550

85,700 85,750 14,167 9,847 14,167 12,561

85,750 85,800 14,178 9,853 14,178 12,572

85,800 85,850 14,189 9,859 14,189 12,583

85,850 85,900 14,200 9,865 14,200 12,594

85,900 85,950 14,211 9,871 14,211 12,605

85,950 86,000 14,222 9,877 14,222 12,616

86,000

86,000 86,050 14,233 9,883 14,233 12,627

86,050 86,100 14,244 9,889 14,244 12,638

86,100 86,150 14,255 9,895 14,255 12,649

86,150 86,200 14,266 9,901 14,266 12,660

86,200 86,250 14,277 9,907 14,277 12,671

86,250 86,300 14,288 9,913 14,288 12,682

86,300 86,350 14,299 9,919 14,299 12,693

86,350 86,400 14,310 9,925 14,310 12,704

86,400 86,450 14,321 9,931 14,321 12,715

86,450 86,500 14,332 9,937 14,332 12,726

86,500 86,550 14,343 9,943 14,343 12,737

86,550 86,600 14,354 9,949 14,354 12,748

86,600 86,650 14,365 9,955 14,365 12,759

86,650 86,700 14,376 9,961 14,376 12,770

86,700 86,750 14,387 9,967 14,387 12,781

86,750 86,800 14,398 9,973 14,398 12,792

86,800 86,850 14,409 9,979 14,409 12,803

86,850 86,900 14,420 9,985 14,420 12,814

86,900 86,950 14,431 9,991 14,431 12,825

86,950 87,000 14,442 9,997 14,442 12,836

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

87,000

87,000 87,050 14,453 10,003 14,453 12,847

87,050 87,100 14,464 10,009 14,464 12,858

87,100 87,150 14,475 10,015 14,475 12,869

87,150 87,200 14,486 10,021 14,486 12,880

87,200 87,250 14,497 10,027 14,497 12,891

87,250 87,300 14,508 10,033 14,508 12,902

87,300 87,350 14,519 10,039 14,519 12,913

87,350 87,400 14,530 10,045 14,530 12,924

87,400 87,450 14,541 10,051 14,541 12,935

87,450 87,500 14,552 10,057 14,552 12,946

87,500 87,550 14,563 10,063 14,563 12,957

87,550 87,600 14,574 10,069 14,574 12,968

87,600 87,650 14,585 10,075 14,585 12,979

87,650 87,700 14,596 10,081 14,596 12,990

87,700 87,750 14,607 10,087 14,607 13,001

87,750 87,800 14,618 10,093 14,618 13,012

87,800 87,850 14,629 10,099 14,629 13,023

87,850 87,900 14,640 10,105 14,640 13,034

87,900 87,950 14,651 10,111 14,651 13,045

87,950 88,000 14,662 10,117 14,662 13,056

88,000

88,000 88,050 14,673 10,123 14,673 13,067

88,050 88,100 14,684 10,129 14,684 13,078

88,100 88,150 14,695 10,135 14,695 13,089

88,150 88,200 14,706 10,141 14,706 13,100

88,200 88,250 14,717 10,147 14,717 13,111

88,250 88,300 14,728 10,153 14,728 13,122

88,300 88,350 14,739 10,159 14,739 13,133

88,350 88,400 14,750 10,165 14,750 13,144

88,400 88,450 14,761 10,171 14,761 13,155

88,450 88,500 14,772 10,177 14,772 13,166

88,500 88,550 14,783 10,183 14,783 13,177

88,550 88,600 14,794 10,189 14,794 13,188

88,600 88,650 14,805 10,195 14,805 13,199

88,650 88,700 14,816 10,201 14,816 13,210

88,700 88,750 14,827 10,207 14,827 13,221

88,750 88,800 14,838 10,213 14,838 13,232

88,800 88,850 14,849 10,219 14,849 13,243

88,850 88,900 14,860 10,225 14,860 13,254

88,900 88,950 14,871 10,231 14,871 13,265

88,950 89,000 14,882 10,237 14,882 13,276

89,000

89,000 89,050 14,893 10,243 14,893 13,287

89,050 89,100 14,904 10,249 14,904 13,298

89,100 89,150 14,915 10,255 14,915 13,309

89,150 89,200 14,926 10,261 14,926 13,320

89,200 89,250 14,937 10,267 14,937 13,331

89,250 89,300 14,948 10,273 14,948 13,342

89,300 89,350 14,959 10,279 14,959 13,353

89,350 89,400 14,970 10,285 14,970 13,364

89,400 89,450 14,981 10,291 14,981 13,375

89,450 89,500 14,992 10,300 14,992 13,386

89,500 89,550 15,003 10,311 15,003 13,397

89,550 89,600 15,014 10,322 15,014 13,408

89,600 89,650 15,025 10,333 15,025 13,419

89,650 89,700 15,036 10,344 15,036 13,430

89,700 89,750 15,047 10,355 15,047 13,441

89,750 89,800 15,058 10,366 15,058 13,452

89,800 89,850 15,069 10,377 15,069 13,463

89,850 89,900 15,080 10,388 15,080 13,474

89,900 89,950 15,091 10,399 15,091 13,485

89,950 90,000 15,102 10,410 15,102 13,496

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

90,000

90,000 90,050 15,113 10,421 15,113 13,507

90,050 90,100 15,124 10,432 15,124 13,518

90,100 90,150 15,135 10,443 15,135 13,529

90,150 90,200 15,146 10,454 15,146 13,540

90,200 90,250 15,157 10,465 15,157 13,551

90,250 90,300 15,168 10,476 15,168 13,562

90,300 90,350 15,179 10,487 15,179 13,573

90,350 90,400 15,190 10,498 15,190 13,584

90,400 90,450 15,201 10,509 15,201 13,595

90,450 90,500 15,212 10,520 15,212 13,606

90,500 90,550 15,223 10,531 15,223 13,617

90,550 90,600 15,234 10,542 15,234 13,628

90,600 90,650 15,245 10,553 15,245 13,639

90,650 90,700 15,256 10,564 15,256 13,650

90,700 90,750 15,267 10,575 15,267 13,661

90,750 90,800 15,278 10,586 15,278 13,672

90,800 90,850 15,289 10,597 15,289 13,683

90,850 90,900 15,300 10,608 15,300 13,694

90,900 90,950 15,311 10,619 15,311 13,705

90,950 91,000 15,322 10,630 15,322 13,716

91,000

91,000 91,050 15,333 10,641 15,333 13,727

91,050 91,100 15,344 10,652 15,344 13,738

91,100 91,150 15,355 10,663 15,355 13,749

91,150 91,200 15,366 10,674 15,366 13,760

91,200 91,250 15,377 10,685 15,377 13,771

91,250 91,300 15,388 10,696 15,388 13,782

91,300 91,350 15,399 10,707 15,399 13,793

91,350 91,400 15,410 10,718 15,410 13,804

91,400 91,450 15,421 10,729 15,421 13,815

91,450 91,500 15,432 10,740 15,432 13,826

91,500 91,550 15,443 10,751 15,443 13,837

91,550 91,600 15,454 10,762 15,454 13,848

91,600 91,650 15,465 10,773 15,465 13,859

91,650 91,700 15,476 10,784 15,476 13,870

91,700 91,750 15,487 10,795 15,487 13,881

91,750 91,800 15,498 10,806 15,498 13,892

91,800 91,850 15,509 10,817 15,509 13,903

91,850 91,900 15,520 10,828 15,520 13,914

91,900 91,950 15,531 10,839 15,531 13,925

91,950 92,000 15,542 10,850 15,542 13,936

92,000

92,000 92,050 15,553 10,861 15,553 13,947

92,050 92,100 15,564 10,872 15,564 13,958

92,100 92,150 15,575 10,883 15,575 13,969

92,150 92,200 15,586 10,894 15,586 13,980

92,200 92,250 15,597 10,905 15,597 13,991

92,250 92,300 15,608 10,916 15,608 14,002

92,300 92,350 15,619 10,927 15,619 14,013

92,350 92,400 15,630 10,938 15,630 14,024

92,400 92,450 15,641 10,949 15,641 14,035

92,450 92,500 15,652 10,960 15,652 14,046

92,500 92,550 15,663 10,971 15,663 14,057

92,550 92,600 15,674 10,982 15,674 14,068

92,600 92,650 15,685 10,993 15,685 14,079

92,650 92,700 15,696 11,004 15,696 14,090

92,700 92,750 15,707 11,015 15,707 14,101

92,750 92,800 15,718 11,026 15,718 14,112

92,800 92,850 15,729 11,037 15,729 14,123

92,850 92,900 15,740 11,048 15,740 14,134

92,900 92,950 15,751 11,059 15,751 14,145

92,950 93,000 15,762 11,070 15,762 14,156

(Continued)

* This column must also be used by a qualifying surviving spouse.

122

Publication 17 (2023)

Page 125 of 142 Fileid: … ations/p17/2023/a/xml/cycle04/source 8:00 - 18-Mar-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2023 Tax Table — Continued

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

93,000

93,000 93,050 15,773 11,081 15,773 14,167

93,050 93,100 15,784 11,092 15,784 14,178

93,100 93,150 15,795 11,103 15,795 14,189

93,150 93,200 15,806 11,114 15,806 14,200

93,200 93,250 15,817 11,125 15,817 14,211

93,250 93,300 15,828 11,136 15,828 14,222

93,300 93,350 15,839 11,147 15,839 14,233

93,350 93,400 15,850 11,158 15,850 14,244

93,400 93,450 15,861 11,169 15,861 14,255

93,450 93,500 15,872 11,180 15,872 14,266

93,500 93,550 15,883 11,191 15,883 14,277

93,550 93,600 15,894 11,202 15,894 14,288

93,600 93,650 15,905 11,213 15,905 14,299

93,650 93,700 15,916 11,224 15,916 14,310

93,700 93,750 15,927 11,235 15,927 14,321

93,750 93,800 15,938 11,246 15,938 14,332

93,800 93,850 15,949 11,257 15,949 14,343

93,850 93,900 15,960 11,268 15,960 14,354

93,900 93,950 15,971 11,279 15,971 14,365

93,950 94,000 15,982 11,290 15,982 14,376

94,000

94,000 94,050 15,993 11,301 15,993 14,387

94,050 94,100 16,004 11,312 16,004 14,398

94,100 94,150 16,015 11,323 16,015 14,409

94,150 94,200 16,026 11,334 16,026 14,420

94,200 94,250 16,037 11,345 16,037 14,431

94,250 94,300 16,048 11,356 16,048 14,442

94,300 94,350 16,059 11,367 16,059 14,453

94,350 94,400 16,070 11,378 16,070 14,464

94,400 94,450 16,081 11,389 16,081 14,475

94,450 94,500 16,092 11,400 16,092 14,486

94,500 94,550 16,103 11,411 16,103 14,497

94,550 94,600 16,114 11,422 16,114 14,508

94,600 94,650 16,125 11,433 16,125 14,519

94,650 94,700 16,136 11,444 16,136 14,530

94,700 94,750 16,147 11,455 16,147 14,541

94,750 94,800 16,158 11,466 16,158 14,552

94,800 94,850 16,169 11,477 16,169 14,563

94,850 94,900 16,180 11,488 16,180 14,574

94,900 94,950 16,191 11,499 16,191 14,585

94,950 95,000 16,202 11,510 16,202 14,596

95,000

95,000 95,050 16,213 11,521 16,213 14,607

95,050 95,100 16,224 11,532 16,224 14,618

95,100 95,150 16,235 11,543 16,235 14,629

95,150 95,200 16,246 11,554 16,246 14,640

95,200 95,250 16,257 11,565 16,257 14,651

95,250 95,300 16,268 11,576 16,268 14,662

95,300 95,350 16,279 11,587 16,279 14,673

95,350 95,400 16,290 11,598 16,290 14,684

95,400 95,450 16,302 11,609 16,302 14,696

95,450 95,500 16,314 11,620 16,314 14,708

95,500 95,550 16,326 11,631 16,326 14,720

95,550 95,600 16,338 11,642 16,338 14,732

95,600 95,650 16,350 11,653 16,350 14,744

95,650 95,700 16,362 11,664 16,362 14,756

95,700 95,750 16,374 11,675 16,374 14,768

95,750 95,800 16,386 11,686 16,386 14,780

95,800 95,850 16,398 11,697 16,398 14,792

95,850 95,900 16,410 11,708 16,410 14,804

95,900 95,950 16,422 11,719 16,422 14,816

95,950 96,000 16,434 11,730 16,434 14,828

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

96,000

96,000 96,050 16,446 11,741 16,446 14,840

96,050 96,100 16,458 11,752 16,458 14,852

96,100 96,150 16,470 11,763 16,470 14,864

96,150 96,200 16,482 11,774 16,482 14,876

96,200 96,250 16,494 11,785 16,494 14,888

96,250 96,300 16,506 11,796 16,506 14,900

96,300 96,350 16,518 11,807 16,518 14,912

96,350 96,400 16,530 11,818 16,530 14,924

96,400 96,450 16,542 11,829 16,542 14,936

96,450 96,500 16,554 11,840 16,554 14,948

96,500 96,550 16,566 11,851 16,566 14,960

96,550 96,600 16,578 11,862 16,578 14,972

96,600 96,650 16,590 11,873 16,590 14,984

96,650 96,700 16,602 11,884 16,602 14,996

96,700 96,750 16,614 11,895 16,614 15,008

96,750 96,800 16,626 11,906 16,626 15,020

96,800 96,850 16,638 11,917 16,638 15,032

96,850 96,900 16,650 11,928 16,650 15,044

96,900 96,950 16,662 11,939 16,662 15,056

96,950 97,000 16,674 11,950 16,674 15,068

97,000

97,000 97,050 16,686 11,961 16,686 15,080

97,050 97,100 16,698 11,972 16,698 15,092

97,100 97,150 16,710 11,983 16,710 15,104

97,150 97,200 16,722 11,994 16,722 15,116

97,200 97,250 16,734 12,005 16,734 15,128

97,250 97,300 16,746 12,016 16,746 15,140

97,300 97,350 16,758 12,027 16,758 15,152

97,350 97,400 16,770 12,038 16,770 15,164

97,400 97,450 16,782 12,049 16,782 15,176

97,450 97,500 16,794 12,060 16,794 15,188

97,500 97,550 16,806 12,071 16,806 15,200

97,550 97,600 16,818 12,082 16,818 15,212

97,600 97,650 16,830 12,093 16,830 15,224

97,650 97,700 16,842 12,104 16,842 15,236

97,700 97,750 16,854 12,115 16,854 15,248

97,750 97,800 16,866 12,126 16,866 15,260

97,800 97,850 16,878 12,137 16,878 15,272

97,850 97,900 16,890 12,148 16,890 15,284

97,900 97,950 16,902 12,159 16,902 15,296

97,950 98,000 16,914 12,170 16,914 15,308

98,000

98,000 98,050 16,926 12,181 16,926 15,320

98,050 98,100 16,938 12,192 16,938 15,332

98,100 98,150 16,950 12,203 16,950 15,344

98,150 98,200 16,962 12,214 16,962 15,356

98,200 98,250 16,974 12,225 16,974 15,368

98,250 98,300 16,986 12,236 16,986 15,380

98,300 98,350 16,998 12,247 16,998 15,392

98,350 98,400 17,010 12,258 17,010 15,404

98,400 98,450 17,022 12,269 17,022 15,416

98,450 98,500 17,034 12,280 17,034 15,428

98,500 98,550 17,046 12,291 17,046 15,440

98,550 98,600 17,058 12,302 17,058 15,452

98,600 98,650 17,070 12,313 17,070 15,464

98,650 98,700 17,082 12,324 17,082 15,476

98,700 98,750 17,094 12,335 17,094 15,488

98,750 98,800 17,106 12,346 17,106 15,500

98,800 98,850 17,118 12,357 17,118 15,512

98,850 98,900 17,130 12,368 17,130 15,524

98,900 98,950 17,142 12,379 17,142 15,536

98,950 99,000 17,154 12,390 17,154 15,548

If line 15

(taxable

income) is—

And you are—

least

But

less

than

Single Married

filing

jointly *

Married

filing

sepa-

rately

Head of

house-

hold

Your tax is—

99,000

99,000 99,050 17,166 12,401 17,166 15,560

99,050 99,100 17,178 12,412 17,178 15,572

99,100 99,150 17,190 12,423 17,190 15,584

99,150 99,200 17,202 12,434 17,202 15,596

99,200 99,250 17,214 12,445 17,214 15,608

99,250 99,300 17,226 12,456 17,226 15,620

99,300 99,350 17,238 12,467 17,238 15,632

99,350 99,400 17,250 12,478 17,250 15,644

99,400 99,450 17,262 12,489 17,262 15,656

99,450 99,500 17,274 12,500 17,274 15,668

99,500 99,550 17,286 12,511 17,286 15,680

99,550 99,600 17,298 12,522 17,298 15,692

99,600 99,650 17,310 12,533 17,310 15,704

99,650 99,700 17,322 12,544 17,322 15,716

99,700 99,750 17,334 12,555 17,334 15,728

99,750 99,800 17,346 12,566 17,346 15,740

99,800 99,850 17,358 12,577 17,358 15,752

99,850 99,900 17,370 12,588 17,370 15,764

99,900 99,950 17,382 12,599 17,382 15,776

99,950 100,000 17,394 12,610 17,394 15,788

$100,000

or over

use the Tax

Computation

Worksheet

* This column must also be used by a qualifying surviving spouse.

Publication 17 (2023)

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2023 Tax Computation Worksheet—Line 16

CAUTION

See Line 16 in the Instructions for Form 1040 to see if you must use the worksheet below to figure your tax.

Note. If you’re required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified

Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax

Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you’re looking up. Enter the

result on the appropriate line of the form or worksheet that you’re completing.

Section A—Use if your filing status is Single. Complete the row below that applies to you.

Taxable income.

If line 15 is—

(a)

Enter the amount from

line 15.

(b)

Multiplication

amount

(c)

Multiply

(a) by (b)

(d)

Subtraction amount

Tax.

Subtract (d) from (c).

Enter the result here and

on Form 1040 or

1040-SR, line 16.

At least $100,000 but not over $182,100 $ × 24% (0.24) $ $ 6,600.00 $

Over $182,100 but not over $231,250 $ × 32% (0.32) $ $ 21,168.00 $

Over $231,250 but not over $578,125 $ × 35% (0.35) $ $ 28,105.50 $

Over $578,125 $ × 37% (0.37) $ $ 39,668.00 $

Section B—Use if your filing status is Married filing jointly or Qualifying surviving spouse. Complete the row below that applies to you.

Taxable income.

If line 15 is—

(a)

Enter the amount

from line 15.

(b)

Multiplication

amount

(c)

Multiply

(a) by (b)

(d)

Subtraction amount

Tax.

Subtract (d) from (c).

Enter the result here and

on Form 1040 or

1040-SR, line 16.

At least $100,000 but not over $190,750 $ × 22% (0.22) $ $ 9,385.00 $

Over $190,750 but not over $364,200 $ × 24% (0.24) $ $ 13,200.00 $

Over $364,200 but not over $462,500 $ × 32% (0.32) $ $ 42,336.00 $

Over $462,500 but not over $693,750 $ × 35% (0.35) $ $ 56,211.00 $

Over $693,750 $ × 37% (0.37) $ $ 70,086.00 $

Section C—Use if your filing status is Married filing separately. Complete the row below that applies to you.

Taxable income.

If line 15 is—

(a)

Enter the amount from

line 15.

(b)

Multiplication

amount

(c)

Multiply

(a) by (b)

(d)

Subtraction amount

Tax.

Subtract (d) from (c).

Enter the result here and

on Form 1040 or

1040-SR, line 16.

At least $100,000 but not over $182,100 $ × 24% (0.24) $ $ 6,600.00 $

Over $182,100 but not over $231,250 $ × 32% (0.32) $ $ 21,168.00 $

Over $231,250 but not over $346,875 $ × 35% (0.35) $ $ 28,105.50 $

Over $346,875 $ × 37% (0.37) $ $ 35,043.00 $

Section D—Use if your filing status is Head of household. Complete the row below that applies to you.

Taxable income.

If line 15 is—

(a)

Enter the amount

from line 15.

(b)

Multiplication amount

(c)

Multiply

(a) by (b)

(d)

Subtraction amount

Tax.

Subtract (d) from (c).

Enter the result here and

on Form 1040 or

1040-SR, line 16.

At least $100,000 but not over $182,100 $ × 24% (0.24) $ $ 8,206.00 $

Over $182,100 but not over $231,250 $ × 32% (0.32) $ $ 22,774.00 $

Over $231,250 but not over $578,100 $ × 35% (0.35) $ $ 29,711.50 $

Over $578,100 $ × 37% (0.37) $ $ 41,273.50 $

124 Publication 17 (2023)

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2023 Tax Rate Schedules

CAUTION

The Tax Rate Schedules are shown so you can see the tax rate that applies to all levels of taxable income. Don’t use them to figure your tax. Instead,

see chapter 13.

Schedule X—If your filing status is Single

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $11,000 - - - - - - - 10% $0

11,000 44,725 $1,100.00 + 12% 11,000

44,725 95,375 5,147.00 + 22% 44,725

95,375 182,100 16,290.00 + 24% 95,375

182,100 231,250 37,104.00 + 32% 182,100

231,250 578,125 52,832.00 + 35% 231,250

578,125 - - - - - - - 174,238.25 + 37% 578,125

Schedule Y-1—If your filing status is Married filing jointly or Qualifying surviving spouse

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $22,000 - - - - - - - 10% $0

22,000 89,450 $2,200.00 + 12% 22,000

89,450 190,750 10,294.00 + 22% 89,450

190,750 364,200 32,580.00 + 24% 190,750

364,200 462,500 74,208.00 + 32% 364,200

462,500 693,750 105,664.00 + 35% 462,500

693,750 - - - - - - - 186,601.50 + 37% 693,750

Schedule Y-2—If your filing status is Married filing separately

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $11,000 - - - - - - - 10% $0

11,000 44,725 $1,100.00 + 12% 11,000

44,725 95,375 5,147.00 + 22% 44,725

95,375 182,100 16,290.00 + 24% 95,375

182,100 231,250 37,104.00 + 32% 182,100

231,250 346,875 52,832.00 + 35% 231,250

346,875 - - - - - - - 93,300.75 + 37% 346,875

Schedule Z—If your filing status is Head of household

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $15,700 - - - - - - - 10% $0

15,700 59,850 $1,570.00 + 12% 15,700

59,850 95,350 6,868.00 + 22% 59,850

95,350 182,100 14,678.00 + 24% 95,350

182,100 231,250 35,498.00 + 32% 182,100

231,250 578,100 51,226.00 + 35% 231,250

578,100 - - - - - - - 172,623.50 + 37% 578,100

Publication 17 (2023) 125

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Your Rights as a Taxpayer

This section explains your rights as

a taxpayer and the processes for

examination, appeal, collection,

and refunds.

The Taxpayer Bill of

Rights

1. The Right to Be Informed.

Taxpayers have the right to know

what they need to do to comply

with the tax laws. They are entitled

to clear explanations of the laws

and IRS procedures in all tax

forms, instructions, publications,

notices, and correspondence.

They have the right to be informed

of IRS decisions about their tax ac-

counts and to receive clear explan-

ations of the outcomes.

2. The Right to Quality Service.

Taxpayers have the right to receive

prompt, courteous, and professio-

nal assistance in their dealings with

the IRS, to be spoken to in a way

they can easily understand, to re-

ceive clear and easily understand-

able communications from the IRS,

and to speak to a supervisor about

inadequate service.

3. The Right to Pay No More

than the Correct Amount of Tax.

Taxpayers have the right to pay

only the amount of tax legally due,

including interest and penalties,

and to have the IRS apply all tax

payments properly.

4. The Right to Challenge the

IRS’s Position and Be Heard.

Taxpayers have the right to raise

objections and provide additional

documentation in response to for-

mal IRS actions or proposed ac-

tions, to expect that the IRS will

consider their timely objections

and documentation promptly and

fairly, and to receive a response if

the IRS does not agree with their

position.

5. The Right to Appeal an IRS

Decision in an Independent Fo-

rum. Taxpayers are entitled to a

fair and impartial administrative ap-

peal of most IRS decisions, includ-

ing many penalties, and have the

right to receive a written response

regarding the IRS Independent Of-

fice of Appeals' decision. Taxpay-

ers generally have the right to take

their cases to court.

6. The Right to Finality. Taxpay-

ers have the right to know the max-

imum amount of time they have to

challenge the IRS’s position as well

as the maximum amount of time

the IRS has to audit a particular tax

year or collect a tax debt. Taxpay-

ers have the right to know when the

IRS has finished an audit.

7. The Right to Privacy. Taxpay-

ers have the right to expect that

any IRS inquiry, examination, or

enforcement action will comply

with the law and be no more intru-

sive than necessary, and will re-

spect all due process rights, includ-

ing search and seizure protections,

and will provide, where applicable,

a collection due process hearing.

8. The Right to Confidentiality.

Taxpayers have the right to expect

that any information they provide to

the IRS will not be disclosed unless

authorized by the taxpayer or by

law. Taxpayers have the right to ex-

pect appropriate action will be

taken against employees, return

preparers, and others who wrong-

fully use or disclose taxpayer return

information.

9. The Right to Retain Repre-

sentation. Taxpayers have the

right to retain an authorized repre-

sentative of their choice to repre-

sent them in their dealings with the

IRS. Taxpayers have the right to

seek assistance from a Low In-

come Taxpayer Clinic if they cannot

afford representation.

10. The Right to a Fair and Just

Tax System. Taxpayers have the

right to expect the tax system to

consider facts and circumstances

that might affect their underlying li-

abilities, ability to pay, or ability to

provide information timely. Taxpay-

ers have the right to receive assis-

tance from the Taxpayer Advocate

Service if they are experiencing fi-

nancial difficulty or if the IRS has

not resolved their tax issues prop-

erly and timely through its normal

channels.

Examinations

(Audits)

We accept most taxpayers’ returns

as filed. If we inquire about your re-

turn or select it for examination, it

does not suggest that you are dis-

honest. The inquiry or examination

may or may not result in more tax.

We may close your case without

change; or, you may receive a re-

fund.

The process of selecting a re-

turn for examination usually begins

in one of two ways. First, we use

computer programs to identify re-

turns that may have incorrect

amounts. These programs may be

based on information returns, such

as Forms 1099 and W-2, on stud-

ies of past examinations, or on cer-

tain issues identified by compli-

ance projects. Second, we use

information from outside sources

that indicates that a return may

have incorrect amounts. These

sources may include newspapers,

public records, and individuals. If

we determine that the information

is accurate and reliable, we may

use it to select a return for exami-

nation.

Pub. 556, Examination of Re-

turns, Appeal Rights, and Claims

for Refund, explains the rules and

procedures that we follow in exami-

nations. The following sections

give an overview of how we con-

duct examinations.

By mail. We handle many exami-

nations and inquiries by mail. We

will send you a letter with either a

request for more information or a

reason why we believe a change to

your return may be needed. You

can respond by mail or you can re-

quest a personal interview with an

examiner. If you mail us the re-

quested information or provide an

explanation, we may or may not

agree with you, and we will explain

the reasons for any changes. Do

not hesitate to write to us about

anything you do not understand.

By interview. If we notify you that

we will conduct your examination

through a personal interview, or

you request such an interview, you

have the right to ask that the ex-

amination take place at a reasona-

ble time and place that is conven-

ient for both you and the IRS. If our

examiner proposes any changes to

your return, they will explain the

reasons for the changes. If you do

not agree with these changes, you

can meet with the examiner's su-

pervisor.

Repeat examinations. If we ex-

amined your return for the same

items in either of the 2 previous

years and proposed no change to

your tax liability, contact us as soon

as possible so we can see if we

should discontinue the examina-

tion.

Appeals

If you do not agree with the exam-

iner's proposed changes, you can

appeal them to the IRS Independ-

ent Office of Appeals. Most differ-

ences can be settled without ex-

pensive and time-consuming court

trials. Your appeal rights are ex-

plained in detail in both Pub. 5,

Your Appeal Rights and How to

Prepare a Protest if You Don't

Agree, and Pub. 556.

If you do not wish to use the

IRS Independent Office of Appeals

or disagree with its findings, you

may be able to take your case to

the U.S. Tax Court, U.S. Court of

Federal Claims, or the U.S. District

Court where you live. If you take

your case to court, the IRS will

have the burden of proving certain

facts if you kept adequate records

to show your tax liability, cooper-

ated with the IRS, and meet certain

other conditions. If the court agrees

with you on most issues in your

case and finds that our position

was largely unjustified, you may be

able to recover some of your ad-

ministrative and litigation costs.

You will not be eligible to recover

these costs unless you tried to re-

solve your case administratively, in-

cluding going through the appeals

system, and you gave us the infor-

mation necessary to resolve the

case.

Collections

Pub. 594, The IRS Collection Proc-

ess, explains your rights and re-

sponsibilities regarding payment of

federal taxes. It describes the fol-

lowing.

•

What to do when you owe

taxes. It describes what to do

if you get a tax bill and what to

do if you think your bill is

wrong. It also covers making

installment payments, delay-

ing collection action, and sub-

mitting an offer in compro-

mise.

•

IRS collection actions. It cov-

ers liens, releasing a lien, lev-

ies, releasing a levy, seizures

and sales, and release of

property.

•

IRS certification to the State

Department of a seriously de-

linquent tax debt, which will

generally result in denial of a

passport application and may

lead to revocation of a pass-

port.

Your collection appeal rights

are explained in detail in Pub.

1660, Collection Appeal Rights.

Innocent spouse relief. Gener-

ally, both you and your spouse are

each responsible for paying the full

amount of tax, interest, and penal-

ties due on your joint return. How-

ever, if you qualify for innocent

spouse relief, you may be relieved

126 Publication 17 (2023)

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of part or all of the joint liability. To

request relief, you must file Form

8857, Request for Innocent

Spouse Relief. For more informa-

tion on innocent spouse relief, see

Pub. 971, Innocent Spouse Relief,

and Form 8857.

Potential third-party contacts.

Generally, the IRS will deal directly

with you or your duly authorized

representative. However, we some-

times talk with other persons if we

need information that you have

been unable to provide, or to verify

information we have received. If we

do contact other persons, such as

a neighbor, a bank, an employer, or

employees, we will generally need

to tell them limited information,

such as your name. The law pro-

hibits us from disclosing any more

information than is necessary to

obtain or verify the information we

are seeking. Our need to contact

other persons may continue as

long as there is activity in your

case. If we do contact other per-

sons, you have a right to request a

list of those contacted. Your re-

quest can be made by telephone,

in writing, or during a personal in-

terview.

Refunds

You may file a claim for refund if

you think you paid too much tax.

You must generally file the claim

within 3 years from the date you

filed your original return or 2 years

from the date you paid the tax,

whichever is later. The law gener-

ally provides for interest on your re-

fund if it is not paid within 45 days

of the date you filed your return or

claim for refund. Pub. 556, has

more information on refunds.

If you were due a refund but you

did not file a return, you must gen-

erally file your return within 3 years

from the date the return was due

(including extensions) to get that

refund.

Taxpayer Advocate

Service (TAS)

TAS is an independent organiza-

tion within the IRS that can help

protect your taxpayer rights. They

can offer you help if your tax prob-

lem is causing a hardship, or

you've tried but haven't been able

to resolve your problem with the

IRS. If you qualify for their assis-

tance, which is always free, will do

everything possible to help you. Go

to TaxpayerAdvocate.IRS.gov or

call 877-777-4778.

Tax Information

The IRS provides the following

sources for forms, publications,

and additional information.

•

Internet: IRS.gov.

•

Tax Questions:

IRS.gov/Help/Tax-Law-

Questions and

How To Get Tax Help.

•

Forms and Publications:

IRS.gov/Forms and

IRS.gov/OrderForms.

•

Small Business Ombudsman:

A small business entity can

participate in the regulatory

process and comment on en-

forcement actions of the IRS

by calling 888-REG-FAIR.

•

Treasury Inspector General for

Tax Administration: You can

confidentially report miscon-

duct, waste, fraud, or abuse

by an IRS employee by calling

800-366-4484. People who

are deaf, hard of hearing, or

have a speech disability and

who have access to TTY/TDD

equipment can call

800-877-8339. You can re-

main anonymous.

How To Get Tax Help

If you have questions about a tax

issue; need help preparing your tax

return; or want to download free

publications, forms, or instructions,

go to IRS.gov to find resources that

can help you right away.

Preparing and filing your tax re-

turn. After receiving all your wage

and earnings statements (Forms

W-2, W-2G, 1099-R, 1099-MISC,

1099-NEC, etc.); unemployment

compensation statements (by mail

or in a digital format) or other gov-

ernment payment statements

(Form 1099-G); and interest, divi-

dend, and retirement statements

from banks and investment firms

(Forms 1099), you have several op-

tions to choose from to prepare

and file your tax return. You can

prepare the tax return yourself, see

if you qualify for free tax prepara-

tion, or hire a tax professional to

prepare your return.

Free options for tax preparation.

Your options for preparing and fil-

ing your return online or in your lo-

cal community, if you qualify, in-

clude the following.

•

Free File. This program lets

you prepare and file your fed-

eral individual income tax re-

turn for free using software or

Free File Fillable Forms. How-

ever, state tax preparation

may not be available through

Free File. Go to IRS.gov/

FreeFile to see if you qualify

for free online federal tax

preparation, e-filing, and di-

rect deposit or payment op-

tions.

•

VITA. The Volunteer Income

Tax Assistance (VITA) pro-

gram offers free tax help to

people with low-to-moderate

incomes, persons with disabil-

ities, and limited-Eng-

lish-speaking taxpayers who

need help preparing their own

tax returns. Go to IRS.gov/

VITA, download the free

IRS2Go app, or call

800-906-9887 for information

on free tax return preparation.

•

TCE. The Tax Counseling for

the Elderly (TCE) program of-

fers free tax help for all tax-

payers, particularly those who

are 60 years of age and older.

TCE volunteers specialize in

answering questions about

pensions and retirement-rela-

ted issues unique to seniors.

Go to IRS.gov/TCE or down-

load the free IRS2Go app for

information on free tax return

preparation.

•

MilTax. Members of the U.S.

Armed Forces and qualified

veterans may use MilTax, a

free tax service offered by the

Department of Defense

through Military OneSource.

For more information, go to

MilitaryOneSource

(MilitaryOneSource.mil/

MilTax).

Also, the IRS offers Free

Fillable Forms, which can be

completed online and then

e-filed regardless of income.

Using online tools to help pre-

pare your return. Go to IRS.gov/

Tools for the following.

•

The Earned Income Tax Credit

Assistant (IRS.gov/

EITCAssistant) determines if

you’re eligible for the earned

income credit (EIC).

•

The Online EIN Application

(IRS.gov/EIN) helps you get

an employer identification

number (EIN) at no cost.

•

The Tax Withholding

Estimator (IRS.gov/W4App)

makes it easier for you to esti-

mate the federal income tax

you want your employer to

withhold from your paycheck.

This is tax withholding. See

how your withholding affects

your refund, take-home pay, or

tax due.

•

The First-Time Homebuyer

Credit Account Look-up

(IRS.gov/HomeBuyer) tool

provides information on your

repayments and account bal-

ance.

•

The Sales Tax Deduction

Calculator (IRS.gov/SalesTax)

figures the amount you can

claim if you itemize deduc-

tions on Schedule A (Form

1040).

Getting answers to your

tax questions. On

IRS.gov, you can get

up-to-date information on current

events and changes in tax law.

•

IRS.gov/Help: A variety of

tools to help you get answers

to some of the most common

tax questions.

•

IRS.gov/ITA: The Interactive

Tax Assistant, a tool that will

ask you questions and, based

on your input, provide an-

swers on a number of tax top-

ics.

•

IRS.gov/Forms: Find forms, in-

structions, and publications.

You will find details on the

most recent tax changes and

interactive links to help you

find answers to your ques-

tions.

•

You may also be able to ac-

cess tax information in your

e-filing software.

Need someone to prepare your

tax return? There are various

types of tax return preparers, in-

cluding enrolled agents, certified

public accountants (CPAs), ac-

countants, and many others who

don’t have professional credentials.

If you choose to have someone

prepare your tax return, choose

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

that preparer wisely. A paid tax pre-

parer is:

•

Primarily responsible for the

overall substantive accuracy

of your return,

•

Required to sign the return,

and

•

Required to include their pre-

parer tax identification number

(PTIN).

Although the tax preparer

always signs the return,

you're ultimately responsi-

ble for providing all the information

required for the preparer to accu-

rately prepare your return and for

the accuracy of every item reported

on the return. Anyone paid to pre-

pare tax returns for others should

have a thorough understanding of

tax matters. For more information

on how to choose a tax preparer,

go to Tips for Choosing a Tax

Preparer on IRS.gov.

Employers can register to use

Business Services Online. The

Social Security Administration

(SSA) offers online service at

SSA.gov/employer for fast, free,

and secure W-2 filing options to

CPAs, accountants, enrolled

agents, and individuals who proc-

ess Form W-2, Wage and Tax

Statement, and Form W-2c, Cor-

rected Wage and Tax Statement.

IRS social media. Go to IRS.gov/

SocialMedia to see the various so-

cial media tools the IRS uses to

share the latest information on tax

changes, scam alerts, initiatives,

products, and services. At the IRS,

privacy and security are our high-

est priority. We use these tools to

share public information with you.

Don’t post your social security

number (SSN) or other confidential

information on social media sites.

Always protect your identity when

using any social networking site.

The following IRS YouTube

channels provide short, informative

videos on various tax-related top-

ics in English, Spanish, and ASL.

•

Youtube.com/irsvideos.

•

Youtube.com/

irsvideosmultilingua.

•

Youtube.com/irsvideosASL.

Watching IRS videos. The IRS

Video portal (IRSVideos.gov) con-

tains video and audio presenta-

tions for individuals, small busi-

nesses, and tax professionals.

Online tax information in other

languages. You can find informa-

tion on IRS.gov/MyLanguage if

English isn’t your native language.

CAUTION

Free Over-the-Phone Interpreter

(OPI) Service. The IRS is com-

mitted to serving taxpayers with

limited-English proficiency (LEP)

by offering OPI services. The OPI

Service is a federally funded pro-

gram and is available at Taxpayer

Assistance Centers (TACs), most

IRS offices, and every VITA/TCE

tax return site. The OPI Service is

accessible in more than 350 lan-

guages.

Accessibility Helpline available

for taxpayers with disabilities.

Taxpayers who need information

about accessibility services can

call 833-690-0598. The Accessibil-

ity Helpline can answer questions

related to current and future acces-

sibility products and services avail-

able in alternative media formats

(for example, braille, large print, au-

dio, etc.). The Accessibility Help-

line does not have access to your

IRS account. For help with tax law,

refunds, or account-related issues,

go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative

Media Preference, or Form

9000(SP) allows you to elect to re-

ceive certain types of written corre-

spondence in the following formats.

•

Standard Print.

•

Large Print.

•

Braille.

•

Audio (MP3).

•

Plain Text File (TXT).

•

Braille Ready File (BRF).

Disasters. Go to IRS.gov/

DisasterRelief to review the availa-

ble disaster tax relief.

Getting tax forms and publica-

tions. Go to IRS.gov/Forms to

view, download, or print all the

forms, instructions, and publica-

tions you may need. Or, you can go

to IRS.gov/OrderForms to place an

order.

Getting tax publications and in-

structions in eBook format.

Download and view most tax publi-

cations and instructions (including

the Instructions for Form 1040) on

mobile devices as eBooks at

IRS.gov/eBooks.

IRS eBooks have been tested

using Apple's iBooks for iPad. Our

eBooks haven’t been tested on