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Deduction for Exemptions Worksheet—Line 42 Keep for Your Records Form 1040—Lines 42 and 44 You must complete and attach Form tax-free educational assistance or a refund of qualified expenses was received in 2009 8914 to claim this additional exemption Line 42 for the student. See Form 8863 for more amount. Exemptions details. Enter the amount and “ECR” in the space next to line 44. Adjusted gross income (line 38) over Taxpayers housing Midwestern displaced $125,100. Use the Deduction for Exemp- individuals. You may be able to claim an Do you want the IRS to figure the tax tions Worksheet below to figure your de- additional exemption amount of $500 per on your taxable income for you? duction for exemptions unless you are person (up to $2,000) if you provided hous- filing Form 8914. ing to a person who was displaced from his ❏ Yes. See Pub. 967 for details, includ- or her main home because of the storms, ing who is eligible and what to do. If you tornadoes, or flooding in a Midwestern dis- have paid too much, we will send you a aster area and all of the following apply. refund. If you did not pay enough, we will Line 44 • The person displaced lived in your send you a bill. main home for a period of at least 60 con- Tax secutive days ending in 2009. ❏ No. Use one of the following methods Include in the total on line 44 all of the • You did not receive any rent or other to figure your tax. following taxes that apply. amount from any source for providing the housing. • Tax on your taxable income. Figure Tax Table or Tax Computation Work- the tax using one of the methods described sheet. If your taxable income is less than • The main home of the person dis- on this page and page 38. $100,000, you must use the Tax Table that placed was in a Midwestern disaster area begins on page 77 to figure your tax. Be on the date the storms, tornadoes, or flood- • Tax from Form 8814 (relating to the sure you use the correct column. If your ing occurred. election to report child’s interest or divi- taxable income is $100,000 or more, use dends). Check the appropriate box. • The person displaced was not your the Tax Computation Worksheet on spouse or dependent. • Tax from Form 4972 (relating to page 89. lump-sum distributions). Check the appro- • You did not claim an additional ex- priate box. emption amount for that person in 2008. However, do not use the Tax Table or • Recapture of an education credit. You • You did not claim the maximum addi- Tax Computation Worksheet to figure your may owe this tax if you claimed an educa- tional exemption amount of $2,000 ($1,000 tax if any of the following applies. if married filing separately) in 2008. tion credit in an earlier year, and either 1. Is the amount on Form 1040, line 38, more than the amount shown on line 4 below for your filing status? Multiply $3,650 by the total number of exemptions claimed on Form 1040, line 6d, and enter the No. STOP result on Form 1040, line 42. Yes. Continue  2. Multiply $3,650 by the total number of exemptions claimed on Form 1040, line 6d . . . . . . . . . . . . . . . . . . . . 2. 3. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Enter the amount shown below for your filing status. • Single—$166,800 • Married filing jointly or qualifying widow(er)—$250,200 } . . . . . . 4. • Married filing separately—$125,100 • Head of household—$208,500 5. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. 6. Is line 5 more than $122,500 ($61,250 if married filing separately)? Multiply $2,433 by the total number of exemptions claimed on Form 1040, line Yes. 6d. Enter the result here and on Form 1040, line 42. Do not complete the rest of this worksheet. Divide line 5 by $2,500 ($1,250 if married filing separately). If the result is not a No. 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. Divide line 8 by 3.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on Form 1040, line 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. - 37 - Need more information or forms? See page 96.