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Form 1040—Lines 29 Through 32 4. If you made contributions to your But if you were also eligible to partici- Lines 31a and 31b IRA in 2009 that you deducted for 2008, do pate in any subsidized health plan main- not include them in the worksheet. tained by your or your spouse’s employer Alimony Paid for any month or part of a month in 2009, 5. If you received income from a non- If you made payments to or for your spouse amounts paid for health insurance coverage qualified deferred compensation plan or or former spouse under a divorce or separa- nongovernmental section 457 plan that is for that month cannot be used to figure the tion instrument, you may be able to take included in box 1 of your Form W-2, or in deduction. For example, if you were eligi- this deduction. Use TeleTax topic 452 (see box 7 of Form 1099-MISC, do not include ble to participate in a subsidized health plan page 94) or see Pub. 504. that income on line 8 of the worksheet. The maintained by your spouse’s employer income should be shown in (a) box 11 of from September 30 through December 31, your Form W-2, (b) box 12 of your Form you cannot use amounts paid for health in- W-2 with code Z, or (c) box 15b of Form surance coverage for September through Line 32 1099-MISC. If it is not, contact your em- December to figure your deduction. ployer or the payer for the amount of the IRA Deduction income. Medicare premiums cannot be used to If you made any nondeductible 6. You must file a joint return to deduct figure the deduction. Also, amounts paid contributions to a traditional in- contributions to your spouse’s IRA. Enter for health insurance coverage from retire- dividual retirement arrange- the total IRA deduction for you and your TIP ment (IRA) for 2009, you must ment plan distributions that were nontax- spouse on line 32. report them on Form 8606. able because you are a retired public safety 7. Do not include qualified rollover con- officer cannot be used to figure the deduc- tributions in figuring your deduction. In- If you made contributions to a tradi- tion. stead, see the instructions for lines 15a and tional IRA for 2009, you may be able to 15b that begin on page 24. take an IRA deduction. But you, or your 8. Do not include trustees’ fees that For more details, see Pub. 535. spouse if filing a joint return, must have were billed separately and paid by you for had earned income to do so. For IRA pur- your IRA. These fees can be deducted only poses, earned income includes alimony and as an itemized deduction on Schedule A. Note. If, during 2009, you were an eligible separate maintenance payments reported trade adjustment assistance (TAA) recipi- 9. Do not include any repayments of on line 11. If you were a member of the ent, alternative TAA (ATAA) recipient, re- qualified reservist distributions. You can- U.S. Armed Forces, earned income in- employment trade adjustment assistance not deduct them. For information on how to cludes any nontaxable combat pay you re- report these repayments, see Qualified re- (RTAA) recipient, or Pension Benefit ceived. If you were self-employed, earned servist repayments in Pub. 590. income is generally your net earnings from Guaranty Corporation pension recipient, self-employment if your personal services you must complete Form 8885 before com- 10. If the total of your IRA deduction on were a material income-producing factor. pleting the worksheet on page 30. When line 32 plus any nondeductible contribution For more details, see Pub. 590. A statement figuring the amount to enter on line 1 of the to your traditional IRAs shown on Form should be sent to you by June 1, 2010, that 8606 is less than your total traditional IRA worksheet on page 30, do not include: shows all contributions to your traditional contributions for 2009, see Pub. 590 for • Any amounts you included on Form IRA for 2009. special rules. 8885, line 4, 11. You may be able to deduct up to an Use the worksheet on pages 32 and 33 to • Any qualified health insurance premi- additional $3,000 if all the following condi- figure the amount, if any, of your IRA de- ums you paid to “U.S. Treasury-HCTC,” or tions are met. duction. But read the following list before • Any health coverage tax credit ad- a. You must have been a participant in a you fill in the worksheet. vance payments shown in box 1 of Form 401(k) plan under which the employer 1099-H. 1. If you were age 701⁄2 or older at the matched at least 50% of your contributions end of 2009, you cannot deduct any contri- to the plan with stock of the company. butions made to your traditional IRA for b. You must have been a participant in If you qualify to take the deduction, use 2009 or treat them as nondeductible contri- the 401(k) plan 6 months before the em- the worksheet on page 30 to figure the butions. ployer filed for bankruptcy. amount you can deduct. 2. You cannot deduct contributions to a c. The employer (or a controlling corpo- Roth IRA. But you may be able to take the ration) must have been a debtor in a bank- retirement savings contributions credit Exception. Use Pub. 535 instead of the ruptcy case in an earlier year. (saver’s credit). See the instructions for line worksheet on page 30 to figure your deduc- d. The employer (or any other person) 50 on page 40. tion if any of the following applies. must have been subject to indictment or conviction based on business transactions • You had more than one source of in- related to the bankruptcy. If you are filing a joint return come subject to self-employment tax. and you or your spouse made If this applies to you, do not use the work- • You file Form 2555 or 2555-EZ. contributions to both a tradi- sheet on pages 32 and 33. Instead, use the CAUTION ! • You are using amounts paid for quali- tional IRA and a Roth IRA for worksheet in Pub. 590. fied long-term care insurance to figure the 2009, do not use the worksheet on pages 32 deduction. and 33. Instead, see Pub. 590 to figure the By April 1 of the year after the amount, if any, of your IRA deduction. year in which you turn age 701⁄2, you must start taking minimum TIP 3. You cannot deduct elective deferrals required distributions from Line 30 to a 401(k) plan, 403(b) plan, section 457 your traditional IRA. If you do not, you Penalty on Early Withdrawal plan, SIMPLE plan, or the federal Thrift may have to pay a 50% additional tax on Savings Plan. These amounts are not in- the amount that should have been distrib- of Savings cluded as income in box 1 of your Form uted. For details, including how to figure The Form 1099-INT or Form 1099-OID W-2. But you may be able to take the retire- the minimum required distribution, see you received will show the amount of any ment savings contributions credit. See the Pub. 590. penalty you were charged. instructions for line 50 on page 40. - 31 - Need more information or forms? See page 96.