Worksheets and Tables for 1040NR

Inflation-Adjusted Amounts for Expatriation Actions After 1996
IF you expatriated during ...	THEN, the rules outlined on this page apply if ...
	Your 5-year average annual net income tax was more than ...	OR	Your net worth equaled or exceeded ...
1997	$106,000		$528,000
1998	109,000		543,000
1999	110,000		552,000
2000	112,000		562,000
2001	116,000		580,000
2002	120,000		599,000

Simplified Method Worksheet - Lines 17a and 17b (keep for your records)

Before you begin: If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, see Pub. 939 to find out if you are entitled to a death benefit exclusion of up to $5,000. If you are, include the exclusion in the amount entered on line 2 below.
Note: If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040NR, line 17b. Enter the total pension or annuity payments received in 2002 on Form 1040NR, line 17a.
1.	Enter the total pension or annuity payments received in 2002. Also, enter this amount on Form 1040NR, line 17a							1.
2.	Enter your cost in the plan at the annuity starting date					2.
3.	Enter the appropriate number from Table 1 below. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below					3.
4.	Divide line 2 by line 3					4.
5.	Multiply line 4 by the number of months for which this year's payments were made. If your annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8. Otherwise, go to line 6					5.
6.	Enter the amount, if any, recovered tax free in years after 1986					6.
7.	Subtract line 6 from line 2					7.
8.	Enter the smaller of line 5 or line 7							8.
9.	Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form 1040NR, line 17b. If your Form 1099-R shows a larger amount, use the amount on this line instead of the amount from Form 1099-R							9.

Table 1 for Line 3 Above
IF the age at annuity starting date (see page 11) was . . .	AND your annuity starting date was -
	before November 19, 1996, enter on line 3 . . .	after November 18, 1996, enter on line 3 . . .
55 or under	300	360
56-60	260	310
61-65	240	260
66-70	170	210
71 or older	120	160

Table 2 for Line 3 Above
IF the combined ages at annuity starting date (see page 11) were . . .	THEN enter on line 3 . . .
110 or under	410
111-120	360
121-130	310
131-140	260
141 or older	210

Student Loan Interest Deduction Worksheet - Line 26 (keep for your records)

Before you begin: Complete Form 1040NR, lines 27 through 32, if they apply to you. Figure any amount to be entered on the dotted line next to line 33 (see the instructions for line 33 on page 14). See the instructions for line 26 on this page.
1.	Enter the total interest you paid in 2002 on qualified student loans (defined below). Do not enter more than $2,500			1.
2.	Enter the amount from Form 1040NR, line 23	2.
3.	Enter the total of the amounts from Form 1040NR, line 24, line 25, and lines 27 through 32, plus any amount you entered on the dotted line next to line 33	3.
4.	Subtract line 3 from line 2	4.
5.	Is line 4 more than $50,000?
	No. Skip lines 5 and 6, enter -0- on line 7, and go to line 8.
	Yes. Subtract $50,000 from line 4	5.
6.	Divide line 5 by $15,000. Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000			6.
7.	Multiply line 1 by line 6			7.
8.	Student loan interest deduction. Subtract line 7 from line 1. Enter the result here and on Form 1040NR, line 26. Do not include this amount in figuring any other deduction on your return (such as on Schedule A (Form 1040NR), Schedule C (Form 1040), Schedule E (Form 1040), etc.)			8.

Self-Employed Health Insurance Deduction Worksheet - Line 29 (keep for your records)

Before you begin: Complete Form 1040NR, line 30, if it applies to you. If you are claiming the health insurance credit for eligible recipients (see page 1), complete Form 8885. Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 535 to figure your deduction.
1.	Enter the total amount paid in 2002 for health insurance coverage established under your business for 2002 for you, your spouse, and dependents. But do not include amounts for any month you were eligible to participate in an employer-sponsored health plan or any amount on Form 8885, line 11	1.
2.	Multiply line 1 by 70% (.70)	2.
3.	Enter your net profit and any other earned income* from the business under which the insurance plan is established, minus any deduction you claim on Form 1040NR, line 30	3.
4.	Self-employed health insurance deduction. Enter the smaller of line 2 or line 3 here and on Form 1040NR, line 29	4.
*Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. It does not include capital gain income.

Deduction for Exemptions Worksheet - Line 38 See the instructions for line 38 beginning on page 14. (keep for your records)

Caution: If you are filing for a qualified disability trust (defined on this page), use this worksheet only if the trust's modified AGI* is more than $137,300. Also, skip line 1, enter $3,000 on line 2, enter the trust's modified AGI on line 3, and enter $137,300 on line 4.
1.	Is the amount on Form 1040NR, line 35, more than the amount shown on line 4 below for your filing status?
	No. Stop. Multiply $3,000 by the total number of exemptions claimed on Form 1040NR, line 7d, and enter the result on line 38.
	Yes. Go to line 2.
2.	Multiply $3,000 by the total number of exemptions claimed on Form 1040NR, line 7d			2.
3.	Enter the amount from Form 1040NR, line 35	3.
4.	Enter the amount shown below for the filing status box you checked on page 1 of Form 1040NR:
	Box 1 or 2, enter $137,300 Box 3, 4, or 5, enter $103,000 Box 6, enter $206,000	4.
5.	Subtract line 4 from line 3. If the result is more than $122,500 ($61,250 if you checked filing status box 3, 4, or 5), stop here. You cannot take a deduction for exemptions.	5.
6.	Divide line 5 by $2,500 ($1,250 if you checked filing status box 3, 4, or 5). If the result is not a whole number, increase it to the next higher whole number (for example, increase 0.0004 to 1)	6.
7.	Multiply line 6 by 2% (.02) and enter the result as a decimal			7.
8.	Multiply line 2 by line 7			8.
9.	Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form 1040NR, line 38			9.
*Figure the trust's modified AGI by applying section 67(e) without regard to section 642(b).

Capital Gain Tax Worksheet - Line 40 (keep for your records)

Before you begin: Be sure you do not have to file Schedule D (Form 1040) (see the instructions for Form 1040NR, line 14, on page 10). Be sure you checked the box on line 14 of Form 1040NR.
1.	Enter the amount from Form 1040NR, line 39	1.
2.	Enter the amount from Form 1040NR, line 14	2.
3.	Subtract line 2 from line 1. If zero or less, enter -0-	3.
4.	Figure the tax on the amount on line 3. Use the Tax Table or Tax Rate Schedules, whichever applies			4.
5.	Enter the smaller of:
	The amount on line 1 or $27,950 if you checked filing status box 1 or 2; $23,350 if you checked filing status box 3, 4, or 5; or $46,700 if you checked filing status box 6	5.
6.	Is the amount on line 3 equal to or more than the amount on line 5?
	Yes. Leave lines 6 through 8 blank; go to line 9 and check the No box.
	No. Enter the amount from line 3	6.
7.	Subtract line 6 from line 5	7.
8.	Multiply line 7 by 10% (.10)			8.
9.	Are the amounts on lines 2 and 7 the same?
	Yes. Leave lines 9 through 12 blank; go to line 13.
	No. Enter the smaller of line 1 or line 2	9.
10.	Enter the amount, if any, from line 7	10.
11.	Subtract line 10 from line 9. If zero or less, enter -0-	11.
12.	Multiply line 11 by 20% (.20)			12.
13.	Add lines 4, 8, and 12			13.
14.	Figure the tax on the amount on line 1. Use the Tax Table or Tax Rate Schedules, whichever applies			14.
15.	Tax on all taxable income (including capital gain distributions). Enter the smaller of line 13 or line 14 here and on Form 1040NR, line 40			15.

Itemized Deductions Worksheet - Line 17 (keep for your records)

1.	Add the amounts on Schedule A, lines 3, 7, 8, 15, and 16				1.
2.	Enter the total of the amount on Schedule A, line 8, plus any casualty or theft losses included on line 16				2.
	Caution: Be sure your casualty or theft losses are clearly identified on the dotted lines next to line 16.
3.	Is the amount on line 2 less than the amount on line 1?
		No. Stop. Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 17.
		Yes. Subtract line 2 from line 1			3.
4.	Multiply line 3 above by 80% (.80)		4.
5.	Enter the amount from Form 1040NR, line 35		5.
6.	Enter: $137,300 ($68,650 if you checked filing status box 3, 4, or 5)		6.
7.	Is the amount on line 6 less than the amount on line 5?
		No. Stop. Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 17.
		Yes. Subtract line 6 from line 5	7.
8.	Multiply line 7 above by 3% (.03)		8.
9.	Enter the smaller of line 4 or line 8				9.
10.	Total itemized deductions. Subtract line 9 from line 1. Enter the result here and on Schedule A, line 17				10.

Who Must Use Pub. 972

1.	Is the amount on Form 1040NR, line 35, more than the amount shown below for your filing status?
	Filing status 1, 2, or 6 - $75,000 Filing status 3, 4, or 5 - $55,000
		No. Go to line 2.
		Yes. Stop. You must use Pub. 972 to figure your credit.
2.	Are you claiming any of the following credits?
	Adoption credit, Form 8839 (see the instructions for Form 1040NR, line 47, on this page) Mortgage interest credit, Form 8396 (see the instructions for Form 1040NR, line 48, on this page) District of Columbia first-time homebuyer credit, Form 8859
		No. Use the worksheet below to figure your child tax credit.
		Yes. You must use Pub. 972 to figure your child tax credit. You will also need the form(s) listed above for any credit(s) you are claiming.

Child Tax Credit Worksheet - Line 46 (keep for your records)

Caution: To be a qualifying child for the child tax credit, the child must be under age 17 at the end of 2002 and meet the other requirements listed in the instructions for line 7c, column (4), on page 8. Do not use this worksheet if you answered Yes to question 1 or 2 in Who Must Use Pub. 972 above. Instead, use Pub. 972.
1.	Number of qualifying children:__________ X $600. Enter the result						1.
2.	Enter the amount from Form 1040NR, line 42				2.
3.	Enter the amount from Form 1040NR, line 43		3.
4.	Enter the amount from Form 1040NR, line 44		4.
5.	Enter the amount from Form 1040NR, line 45		5.
6.	Add lines 3 through 5				6.
7.	Are the amounts on lines 2 and 6 the same?
		Yes. Stop. You cannot take this credit because there is no tax to reduce. However, you may be able to take the additional child tax credit. See the TIP below before completing the rest of your Form 1040NR.
		No. Subtract line 6 from line 2					7.
8.	Child tax credit. Is the amount on line 1 more than the amount on line 7?
		Yes. Enter the amount from line 7 on line 8 below and on Form 1040NR, line 46. Also, you may be able to take the additional child tax credit. See the TIP below.
		No. Enter the amount from line 1 here and on Form 1040NR, line 46					8.
TIP: You may be able to take the additional child tax credit on Form 1040NR, line 61, if you answered Yes on line 7 or 8 above. First, complete your Form 1040NR through line 60. Then, use Form 8812 to figure any additional child tax credit.

First | Next

Instructions Index | 2002 Tax Help Archives | Tax Help Archives | Home