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us/form/irs/ty2022 — Axiom

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• The includible portion of tenancies by the entirety (see the instructions for Schedule E), • Certain life insurance proceeds (even though payable to beneficiaries other than the estate) (see the instructions for Schedule D), • Digital assets (see the instructions for Schedule F), • Property over which the decedent possessed a general power of appointment, • Dower or curtesy (or statutory estate) of the surviving spouse, and • Community property to the extent of the decedent's interest as defined by applicable law. Note. Under the special rule of Regulations section 20.2010-2(a)(7)(ii), executors of estates who are not required to file Form 706 under section 6018(a), but who are filing to elect portability of the DSUE amount to the surviving spouse, are not required to report the value of certain property eligible for the marital deduction under section 2056 or 2056A or the charitable deduction under section 2055. However, the value of those assets must be estimated and included in the total value of the gross estate. See the instructions for Part 5—Recapitulation, lines 10 and 23, later, for more information. For more specific information, see the instructions for Schedules A through I. U.S. Citizens or Residents; Nonresident Noncitizens File Form 706 for the estates of decedents who were either U.S. citizens or U.S. residents at the time of death. For estate tax purposes, a resident is someone who had a domicile in the United States at the time of death. A person acquires a domicile by living in a place for even a brief period of time, as long as the person had no intention of moving from that place. See Regulations section 20.0-1(b). Decedents who were neither U.S. citizens nor U.S. residents at the time of death file Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States. Residents of U.S. Possessions All references to citizens of the United States are subject to the provisions of sections 2208 and 2209, relating to decedents who were U.S. citizens and residents of a U.S. possession on the date of death. If such decedents became U.S. citizens only because of their connections with a possession, then the decedents are considered nonresidents not citizens of the United States for estate tax purposes, and you should file Form 706-NA. If such decedents became U.S. citizens wholly independently of their connections with a possession, then the decedents are considered U.S. citizens for estate tax purposes, and you should file Form 706. Executor The term “executor” includes the executor, personal representative, or administrator of the decedent's estate. If none of these is appointed, qualified, and acting in the United States, every person in actual or constructive possession of any property of the decedent is considered an executor and must file a return. Executors must provide documentation proving their status. Documentations will vary but may include documents such as certified copies of wills or court orders designating the executor(s). Statements by executors attesting to their status are insufficient. When To File You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent's death. If you are unable to file Form 706 by the due date, you may receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file. Portability election. An executor can only elect to transfer the DSUE amount to the surviving spouse if the Form 706 is filed timely, that is, within 9 months of the decedent's date of death or, if you have received an extension of time to file, before the 6-month extension period ends. Extension to elect portability. Executors who did not have a filing requirement under section 6018(a) but failed to timely file Form 706 to make the portability election may be eligible for an extension under Rev. Proc. 2022-32, 2022-30 I.R.B. 101 (superseding Rev. Proc. 2017-34, 2017-26 I.R.B. 1282). Executors filing to elect portability may now file Form 706 on or before the fifth anniversary of the decedent’s death. An executor wishing to elect portability under this extension must state at the top of the Form 706 being filed that the return is “Filed Pursuant to Rev. Proc. 2022-32 to Elect Portability under section 2010(c)(5)(A).” For more information on this extension, see Rev. Proc. 2022-32. Note. Any estate that is filing an estate tax return only to elect portability and did not file timely or within the extension provided in Rev. Proc. 2022-32 may seek relief under Regulations section 301.9100-3 to make the portability election. Where To File File Form 706 at the following address. Department of the Treasury Internal Revenue Service Kansas City, MO 64999 If you’re using a private delivery service (PDS), file at this address. Internal Revenue Submission Processing Center 333 W. Pershing Road Kansas City, MO 64108 If you’re filing an amended Form 706, use the following address. Internal Revenue Service Center Attn: E&G, Stop 824G 7940 Kentucky Drive Florence, KY 41042-2915 If you’re using a PDS for your amended Form 706, use this address. Internal Revenue Service Center Attn: E&G, Stop 824G 7940 Kentucky Drive Florence, KY 41042-2915 -2- Instructions for Form 706 (Rev. 09-2022)

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Paying the Tax The estate and GST taxes are due within 9 months of the date of the decedent's death. You may request an extension of time for payment by filing Form 4768. You may also elect under section 6166 to pay in installments or under section 6163 to postpone the part of the tax attributable to a reversionary or remainder interest. These elections are made by checking “Yes” on lines 3 and 4 (respectively) of Part 3—Elections by the Executor and attaching the required statements. If the tax paid with the return is different from the balance due as figured on the return, explain the difference in an attached statement. If you have made prior payments to the IRS, attach a statement to Form 706 including these facts. Paying by check. Make the check payable to “United States Treasury.” Please write the decedent's name, social security number (SSN), and “Form 706” on the check to assist us in posting it to the proper account. No checks of $100 million or more accepted. The IRS cannot accept a single check (including a cashier's check) for amounts of $100,000,000 ($100 million) or more. If you're sending $100 million or more by check, you'll need to spread the payments over 2 or more checks, with each check made out for an amount less than $100 million. The $100 million or more amount limit does not apply to other methods of payment (such as electronic payments). Please consider a method of payment other than a check if the amount of the payment is over $100 million. Paying electronically. Payment of the tax due shown on Form 706 may be submitted electronically through the Electronic Federal Tax Payment System (EFTPS). EFTPS is a free service of the Department of the Treasury. To be considered timely, payments made through EFTPS must be completed no later than 8 p.m. Eastern time the day before the due date. All EFTPS payments must be scheduled in advance of the due date and, if necessary, may be changed or canceled up to 2 business days before the scheduled payment date. To get more information about EFTPS or to enroll, visit EFTPS.gov or call 800-555-4477. Additional information about EFTPS is available in Pub. 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Signature and Verification If there is more than one executor, all listed executors are responsible for the return. However, it is sufficient for only one of the co-executors to sign the return. All executors are responsible for the return as filed and are liable for penalties imposed for erroneous or false returns. If two or more persons are liable for filing the return, they should all join together in filing one complete return. However, if they are unable to join in making one complete return, each is required to file a return disclosing all the information the person has about the estate, including the name of every person holding an interest in the property and a full description of the property. If the appointed, qualified, and acting executor is unable to make a complete return, then every person holding an interest in the property must, on notice from the IRS, make a return regarding that interest. The executor who files the return must, in every case, sign the declaration on page 1 under penalties of perjury. CAUTION ! Generally, anyone who is paid to prepare the return must sign the return in the space provided and fill in the Paid Preparer Use Only area. See section 7701(a)(36)(B) for exceptions. In addition to signing and completing the required information, the paid preparer must give a copy of the completed return to the executor. Note. A paid preparer may sign original or amended returns by rubber stamp, mechanical device, or computer software program. Amending Form 706 If you find that you must change something on a return that has already been filed, you should: • File another Form 706; • Enter “Supplemental Information” across the top of page 1 of the form; and • Attach a copy of pages 1, 2, 3, and 4 of the original Form 706 that has already been filed. File the amended Form 706 at the following address. Internal Revenue Service Center Attn: E&G, Stop 824G 7940 Kentucky Drive Florence, KY 41042-2915 If you’re using a PDS, file at this address. Internal Revenue Service Center Attn: E&G, Stop 824G 7940 Kentucky Drive Florence, KY 41042-2915 If you have already been notified that the return has been selected for examination, you should provide the additional information directly to the office conducting the examination. Supplemental Documents Note. You must attach the death certificate to the return. If the decedent was a citizen or resident of the United States and died testate (leaving a valid will), attach a certified copy of the will to the return. If you cannot obtain a certified copy, attach a copy of the will and an explanation of why it is not certified. Other supplemental documents may be required, as explained later. Examples include Form 712, Life Insurance Statement; Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return; Form 706-CE, Certificate of Payment of Foreign Death Tax; trust and power of appointment instruments; and state certification of payment of death taxes. If you do not file these documents with the return, the processing of the return will be delayed. If the decedent was a U.S. citizen but not a resident of the United States, you must attach the following documents to the return. 1. A copy of the inventory of property and the schedule of liabilities, claims against the estate, and expenses of administration filed with the foreign court of probate jurisdiction, certified by a proper official of the court. 2. A copy of the return filed under the foreign inheritance, estate, legacy, succession tax, or other death tax act, certified by a proper official of the foreign tax department, if the estate is subject to such a foreign tax. Instructions for Form 706 (Rev. 09-2022) -3-

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3. If the decedent died testate, a certified copy of the will. Rounding Off to Whole Dollars You may round off cents to whole dollars on the 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 becomes $1 and $2.50 becomes $3. Penalties Late filing and late payment. Section 6651 provides for penalties for both late filing and for late payment unless there is reasonable cause for the delay. The law also provides for penalties for willful attempts to evade payment of tax. The late filing penalty will not be imposed if the taxpayer can show that the failure to file a timely return is due to reasonable cause. Reasonable-cause determinations. If you receive a notice about penalties after you file Form 706, send an explanation and we will determine if you meet reasonable-cause criteria. Do not attach an explanation when you file Form 706. Explanations attached to the return at the time of filing will not be considered. Valuation understatement. Section 6662 provides a 20% penalty for the underpayment of estate tax that exceeds $5,000 when the underpayment is attributable to valuation understatements. A valuation understatement occurs when the value of property reported on Form 706 is 65% or less of the actual value of the property. This penalty increases to 40% if there is a gross valuation understatement. A gross valuation understatement occurs if any property on the return is valued at 40% or less of the value determined to be correct. Penalties also apply to late filing, late payment, and underpayment of GST taxes. Return preparer. Estate tax return preparers who prepare any return or claim for refund which reflects an understatement of tax liability due to an unreasonable position are subject to a penalty equal to the greater of $1,000 or 50% of the income earned (or to be earned) for the preparation of each such return. Estate tax return preparers who prepare a return or claim for refund which reflects an understatement of tax liability due to willful or reckless conduct are subject to a penalty of $5,000 or 75% of the income earned (or income to be earned), whichever is greater, for the preparation of each such return. Estate tax return preparers who prepare any return or claim for a refund are required to furnish a copy to the taxpayer, sign the return, and provide their PTIN, but who fail to do so, are subject to a penalty of $50 for such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. See sections 6694 and 6695, the related regulations, and Announcement 2009-15, 2009-11 I.R.B. 687, available at Announcement 2009-15, for more information. Consistent Basis Reporting Certain estates are required to report to the IRS and the recipient, the estate tax value of each asset included in the gross estate within 30 days of the due date (including extensions) of Form 706 or the date of filing Form 706 if the return is filed late. The basis of certain assets when sold or otherwise disposed of must be consistent with the basis (estate tax value) of the asset when it was received by the beneficiary. To satisfy the consistent basis reporting requirements, the estate must file Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent. See Form 8971 and its instructions for more information. Estate Tax Closing Letters An estate tax closing letter (ETCL) will not be issued unless a request is made via Pay.gov. To allow time for processing, please wait at least 9 months after filing Form 706 to request an ETCL. ETCL fee. Effective October 28, 2021, final regulations TD 9957 established a user fee of $67 for persons requesting the issuance of an ETCL. To make an ETCL request after October 28, 2021, you must go to Pay.gov to submit a request and pay the user fee. Go to Frequently Asked Questions on the Estate Tax Closing Letter, for instructions and more information related to ETCLs. Account transcript in lieu of ETCL. Instead of an ETCL, the executor of the estate may request an account transcript, which reflects transactions including the acceptance of Form 706 or the completion of an examination. Account transcripts are available online to registered tax professionals using the Transcript Delivery System (TDS) or to authorized representatives making requests using Form 4506-T. Go to Transcripts in Lieu of Estate Tax Closing Letters for specific instructions to request online transcripts using the TDS or hardcopy transcripts using Form 4506-T. Note. For information about the release of nonresident U.S. citizen decedents' assets using transfer certificates under Regulations section 20.6325-1, go to Transfer Certificate Filing Requirements for the Estates of Nonresident Citizens of the United States or write to: Internal Revenue Service Center Attn: E&G, Stop 824G 7940 Kentucky Drive Florence, KY 41042-2915 Obtaining Forms and Publications To File or Use Internet. You can access the IRS website at IRS.gov 24 hours a day, 7 days a week to: • Download forms, including talking tax forms, instructions, and publications; • Order IRS products online; • Research your tax questions online; • Search publications online by topic or keyword; • Use the online Internal Revenue Code, regulations, or other official guidance; • View Internal Revenue Bulletins (IRBs) published in the last few years; and • Sign up to receive local and national tax news by email. Other forms that may be required. • Form SS-5, Application for a Social Security Card. • Form 706-CE, Certificate of Payment of Foreign Death Tax. • Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States. -4- Instructions for Form 706 (Rev. 09-2022)

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• Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. • Form 712, Life Insurance Statement. • Form 2848, Power of Attorney and Declaration of Representative. • Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. • Form 4808, Computation of Credit for Gift Tax. • Form 8821, Tax Information Authorization. • Form 8822, Change of Address. • Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent. Additional Information. Pub. 559, Survivors, Executors, and Administrators, may assist you in learning about and preparing Form 706. Specific Instructions You must file the first four pages of Form 706 and all required schedules. File Schedules A through I, as appropriate, to support the entries in items 1 through 9 of Part 5—Recapitulation. Make sure to complete the required pages and schedules in their entirety. Returns filed without entries in each field will not be processed. IF . . . THEN . . . you enter zero on any item of the Recapitulation you need not file the schedule (except for Schedule F) referred to on that item. you are estimating the value of one or more assets pursuant to the special rule of Regulations section 20.2010-2(a)(7)(ii) you must report the asset on the appropriate schedule, but you are not required to enter a value for the asset. Include the estimated value of the asset in the totals entered on Part 5—Recapitulation, lines 10 and 23. you claim an exclusion on item 12 complete and attach Schedule U. you claim any deductions on items 14 through 22 of the Recapitulation complete and attach the appropriate schedules to support the claimed deductions. you claim credits for foreign death taxes or tax on prior transfers complete and attach Schedule P or Q. there is not enough space on a schedule to list all the items attach a Continuation Schedule (or additional sheets of the same size) to the back of the schedule (see the Continuation Schedule at the end of Form 706); photocopy the blank schedule before completing it, if you will need more than one copy. Also consider the following. • Form 706 has 29 numbered pages. • Number the items you list on each schedule, beginning with the number “1” each time, or using the numbering convention as indicated on the schedule (for example, Schedule M). • Total the items listed on the schedule and its attachments, Continuation Schedules, etc. • Enter the total of all attachments, Continuation Schedules, etc., at the bottom of the printed schedule, CAUTION ! but do not carry the totals forward from one schedule to the next. • Enter the total, or totals, for each schedule on page 3, Part 5—Recapitulation. • Do not complete the “Alternate valuation date” or “Alternate value” columns of any schedule unless you elected alternate valuation on Part 3—Elections by the Executor, line 1. • When you complete the return, staple all the required pages together in the proper order. Part 1—Decedent and Executor Line 2 Enter the SSN assigned specifically to the decedent. You cannot use the SSN assigned to the decedent's spouse. If the decedent did not have an SSN, the executor should obtain one for the decedent by filing Form SS-5 with a local Social Security Administration (SSA) office. Line 6a. Name of Executor If there is more than one executor, enter the name of the executor to be contacted by the IRS and see line 6d. Line 6b. Executor's Address Use Form 8822 to report a change of the executor's address. Line 6c. Executor's Social Security Number Only one executor should complete this line. If there is more than one executor, see line 6d. Line 6d. Multiple Executors Check here if there is more than one executor. On an attached statement, provide the name, address, telephone number, and SSN of any executor other than the one named on line 6a. Line 11. Special Rule If the estate is estimating the value of assets under the special rule of Regulations section 20.2010-2(a)(7)(ii), check here and see the instructions for Part 5—Recapitulation, lines 10 and 23. Part 2—Tax Computation In general, the estate tax is figured by applying the unified rates shown in Table A to the total of transfers both during life and at death, and then subtracting the gift taxes, as refigured based on the date of death rates. See Worksheet TG, the Line 4 Worksheet, and the Line 7 Worksheet. Note. You must complete Part 2—Tax Computation. Line 1 If you elected alternate valuation on Part 3—Elections by the Executor, line 1, enter the amount you entered in the “Alternate value” column of Part 5—Recapitulation, item 13. Otherwise, enter the amount from the “Value at date of death” column. Line 3b. State Death Tax Deduction You may take a deduction on line 3b for estate, inheritance, legacy, or succession taxes paid on any property included in the gross estate as the result of the decedent's death to any state or the District of Columbia. Instructions for Form 706 (Rev. 09-2022) -5-

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You may claim an anticipated amount of deduction and figure the federal estate tax on the return before the state death taxes have been paid. However, the deduction cannot be finally allowed unless you pay the state death taxes and claim the deduction within 4 years after the return is filed, or later (see section 2058(b)) if: • A petition is filed with the Tax Court of the United States, • You have an extension of time to pay, or • You file a claim for refund or credit of an overpayment which extends the deadline for claiming the deduction. Note. The deduction is not subject to dollar limits. If you make a section 6166 election to pay the federal estate tax in installments and make a similar election to pay the state death tax in installments, see section 2058(b) for exceptions and periods of limitation. If you transfer property other than cash to the state in payment of state inheritance taxes, the amount you may claim as a deduction is the lesser of the state inheritance tax liability discharged or the fair market value (FMV) of the property on the date of the transfer. For more information on the application of such transfers, see the principles discussed in Rev. Rul. 86-117, 1986-2 C.B. 157, prior to the repeal of section 2011. Send the following evidence to the IRS. 1. Certificate of the proper officer of the taxing state, or the District of Columbia, showing the following. a. Total amount of tax imposed (before adding interest and penalties and before allowing discount). b. Amount of discount allowed. c. Amount of penalties and interest imposed or charged. d. Total amount actually paid in cash. e. Date of payment. 2. Any additional proof the IRS specifically requests. File the evidence requested above with the return, if possible. Otherwise, send it as soon as possible after the return is filed. Line 6 To figure the tentative tax on the amount on line 5, use Table A—Unified Rate Schedule and put the result on this line. Lines 4 and 7 Three worksheets are provided to help you figure the entries for these lines. Worksheet TG—Taxable Gifts Reconciliation allows you to reconcile the decedent's lifetime taxable gifts to figure totals that will be used for the Line 4 Worksheet and the Line 7 Worksheet. You must have all of the decedent's gift tax returns (Forms 709) before completing Worksheet TG—Taxable Gifts Reconciliation. The amounts needed for Worksheet TG can usually be found on the filed returns that were subject to tax. However, if any of the returns were audited by the IRS, use the amounts that were finally determined as a result of the audits. In addition, you must make a reasonable effort to discover any gifts in excess of the annual exclusion made by the decedent (or on behalf of the decedent under a power of attorney) for which no Forms 709 were filed. Include the value of such gifts in column b of Worksheet TG. The annual exclusion per donee is as follows. Period Annual Exclusion Amount Per Donee 1977 through 1981 $3,000 1981 through 2001 $10,000 2002 through 2005 $11,000 2006 through 2008 $12,000 2009 through 2012 $13,000 2013 through 2017 $14,000 2018 through 2021 $15,000 2022 $16,000 How to complete the Line 7 Worksheet. Row (a). Beginning with the earliest year in which the taxable gifts were made, enter the tax period of prior gifts. If you filed returns for gifts made after 1981, enter the calendar year in Row (a) as (YYYY). If you filed returns for gifts made after 1976 and before 1982, enter the calendar quarters in Row (a) as (YYYY-Q). Row (b). Enter all taxable gifts made in the specified year. Enter all pre-1977 gifts in the pre-1977 column. Table A—Unified Rate Schedule Column A Taxable amount over Column B Taxable amount not over Column C Tax on amount in column A Column D Rate of tax on excess over amount in column A . . . . $0 $10,000 $0 18% 10,000 20,000 1,800 20% 20,000 40,000 3,800 22% 40,000 60,000 8,200 24% 60,000 80,000 13,000 26% 80,000 100,000 18,200 28% 100,000 150,000 23,800 30% 150,000 250,000 38,800 32% 250,000 500,000 70,800 34% 500,000 750,000 155,800 37% 750,000 1,000,000 248,300 39% 1,000,000 – – – – 345,800 40% -6- Instructions for Form 706 (Rev. 09-2022)

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Row (c). Enter the amount from Row (d) of the previous column. Row (d). Enter the sum of Row (b) and Row (c) from the current column. Row (e). Enter the amount from Row (f) of the previous column. Row (f). Enter the tax based on the amount in Row (d) of the current column using Table A—Unified Rate Schedule. Row (g). Subtract the amount in Row (e) from the amount in Row (f) for the current column. Row (h). Complete this row only if a DSUE amount was received from predeceased spouse(s) and was applied to lifetime gifts or if a Restored Exclusion Amount on taxable gifts to a same-sex spouse was applied to lifetime gifts (or both). Enter the sum of lines 2 and 3 from Schedule C on the Form 709 filed for the year listed in Row (a) for the amount to be entered in this row. Row (i). Enter the applicable amount from the Table of Basic Exclusion Amounts. Row (j). Enter the sum of Row (h) and Row (i). Row (k). Figure the applicable credit on the amount in Row (j) using Table A—Unified Rate Schedule, and enter here. Note. The entries in each column of Row (k) must be reduced by 20% of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977 (but no more than $6,000). Row (l). Add the amounts in Row (l) and Row (n) from the previous column. Row (m). Subtract the amount in Row (l) from the amount in Row (k) to determine the amount of any available credit. Enter the result in Row (m). Row (n). Enter the lesser of the amounts in Row (g) or Row (m). Row (o). Subtract the amount in Row (n) from the amount in Row (g) for the current column. Row (p). Subtract the amount in Row (o) from the amount in Row (f) for the current column. Row (q). Enter the Cumulative Taxable Gift amount based on the amount in Row (p) using the Taxable Gift Amount Table. Row (r). If Row (o) is greater than zero in the applicable period, subtract Row (q) from Row (d). If Row (o) is not greater than zero, enter -0-. Repeat for each year in which taxable gifts were made. Remember to submit a copy of the Line 7 Worksheet when you file Form 706. If additional space is needed to report prior gifts, please attach additional sheets. CAUTION ! Worksheet TG—Taxable Gifts Reconciliation Worksheet TG—Taxable Gifts Reconciliation (To be used for lines 4 and 7 of the Tax Computation) Gifts made after June 6, 1932, and before 1977 a. Calendar year or calendar quarter b. Total taxable gifts for period (see Note) Note. For the definition of a taxable gift, see section 2503. Follow Form 709. That is, include only the decedent’s one-half of split gifts, whether the gifts were made by the decedent or the decedent’s spouse. In addition to gifts reported on Form 709, you must include any taxable gifts in excess of the annual exclusion that were not reported on Form 709. c. Taxable amount included in column b for gifts included in the gross estate d. Taxable amount included in column b for gifts that qualify for “special treatment of split gifts” described below e. Gift tax paid by decedent on gifts in column d f. Gift tax paid by decedent's spouse on gifts in column c 1. Total taxable gifts made before 1977 Gifts made after 1976 2. Totals for gifts made after 1976 Line 4 Worksheet—Adjusted Taxable Gifts Made After 1976 1. Taxable gifts made after 1976. Enter the amount from Worksheet TG, line 2, column b . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Taxable gifts made after 1976 reportable on Schedule G. Enter the amount from Worksheet TG, line 2, column c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Taxable gifts made after 1976 that qualify for “special treatment.” Enter the amount from Worksheet TG, line 2, column d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Adjusted taxable gifts. Subtract line 4 from line 1. Enter here and on Part 2—Tax Computation, line 4 . . . . . . . . . . . . . . 5. Instructions for Form 706 (Rev. 09-2022) -7-

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Line 7 Worksheet—Submit a copy with Form 706 Line 7 Worksheet, Part A—Used to determine Applicable Credit Allowable for Prior Periods after 1976 (a) Tax Period1 Pre-1977 (b) Taxable Gifts for Applicable Period (c) Taxable Gifts for Prior Periods2 (d) Cumulative Taxable Gifts Including Applicable Period (add Row (b) and Row (c)) (e) Tax at Date of Death Rates for Prior Gifts (from Row (c))3 (f) Tax at Date of Death Rates for Cumulative Taxable Gifts Including Applicable Period (from Row (d)) (g) Tax at Date of Death Rates for Gifts in Applicable Period (subtract Row (e) from Row (f)) (h) Total DSUE applied and Restorable Exclusion Amount from Prior Periods and Applicable Period (see instructions later) (i) Basic Exclusion for Applicable Period (Enter the amount from the Table of Basic Exclusion Amounts) (j) Applicable Exclusion Amount (add Row (h) and Row (i)) (k) Maximum Applicable Credit amount based on Row (j) (Using Table A—Unified Rate Schedule)4 (l) Applicable Credit amount used in Prior Periods (add Row (l) and Row (n) from prior period) (m) Available Credit in Applicable Period (subtract Row (l) from Row (k)) (n) Credit Allowable (lesser of Row (g) or Row (m)) (o) Tax paid or payable at Date of Death rates for Applicable Period (subtract Row (n) from Row (g)) (p) Tax on Cumulative Gifts less tax paid or payable for Applicable Period (subtract Row (o) from Row (f)) (q) Cumulative Taxable Gifts less Gifts in the Applicable Period on which tax was paid or payable based on Row (p) (Using the Taxable Gift Amount Table) (r) Gifts in the Applicable Period on which tax was payable (subtract Row (q) from Row (d)) Line 7 Worksheet, Part B 1 Total gift taxes payable on gifts after 1976 (sum of amounts in Row (o)). 2 Gift taxes paid by the decedent on gifts that qualify for “special treatment.” Enter the amount from Worksheet TG, line 2, col. e. 3 Subtract line 2 from line 1. 4 Gift tax paid by decedent's spouse on split gifts included on Schedule G. Enter amount from Worksheet TG, line 2, col. f. 5 Add lines 3 and 4. Enter here and on Part 2—Tax Computation, line 7. 6 Cumulative lifetime gifts on which tax was paid or payable. Enter this amount on Form 706, Part 6–Portability of Deceased Spousal Unused Exclusion (DSUE), Section C, line 3 (sum of amounts in Row (r)). 1 Row (a): For annual returns, enter the tax period as (YYYY). For quarterly returns, enter tax period as (YYYY-Q). 2 Row (c): Enter amount from Row (d) of the previous column. 3 Row (e): Enter amount from Row (f) of the previous column. 4 Row (k): Figure the applicable credit on the amount in Row (j), using Table A—Unified Rate Schedule, and enter here. (For each column in Row (k), subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.) -8- Instructions for Form 706 (Rev. 09-2022)

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Note. In figuring the line 7 amount, do not include any tax paid or payable on gifts made before 1977. The line 7 amount is a hypothetical figure used to figure the estate tax. Special treatment of split gifts. These special rules apply only if: • The decedent's spouse predeceased the decedent; • The decedent's spouse made gifts that were “split” with the decedent under the rules of section 2513; • The decedent was the “consenting spouse” for those split gifts, as that term is used on Form 709; and • The split gifts were included in the decedent's spouse's gross estate under section 2035. If all four conditions above are met, do not include these gifts on line 4 of the Tax Computation and do not include the gift taxes payable on these gifts on line 7 of the Tax Computation. These adjustments are incorporated into the worksheets. Lines 9a Through 9e. Applicable Credit Amount (Formerly Unified Credit Amount) The applicable credit amount is allowable credit against estate and gift taxes. It is figured by determining the tentative tax on the applicable exclusion amount, which is the amount that can be transferred before an estate tax liability will be incurred. The applicable exclusion amount equals the total of lines 9a, 9b, and 9c. See Lines 9d and 9e, applicable exclusion and credit amount, later, for more information. Line 9a, basic exclusion amount. In 2022, the basic exclusion amount, as adjusted for inflation under section 2010(c)(3), is $12,060,000. Line 9b, DSUE. If the decedent had a spouse who died after 2010, whose estate did not use all of its applicable exclusion against gift or estate tax liability, a DSUE amount may be available for use by the decedent's estate. If the predeceased spouse died in 2011, the DSUE amount was figured and attached to the predeceased spouse’s Form 706. If the predeceased spouse died in 2012 or after, this amount is found in Part 6, Section C, of the Form 706 filed by the estate of the decedent's predeceased spouse. The amount to be entered on line 9b is figured in Part 6, Section D. Line 9c, restored exclusion amount. If a decedent made a taxable gift during the decedent's lifetime to the decedent's same-sex spouse and that transfer resulted in a reduction of the decedent's available applicable exclusion amount, the amount of the applicable exclusion that was reduced can be restored. If the applicable exclusion was previously restored on a Form 709, enter the value on Schedule C, line 3, of Form 709. If the applicable exclusion has not yet been previously restored, follow the directions in the instructions for Form 709, Schedule C, to determine the Restored Exclusion Amount. The Restored Exclusion Amount is entered on line 9c. Lines 9d and 9e, applicable exclusion and credit amount. The total of lines 9a, 9b, and 9c is entered on line 9d. If the amounts entered on both lines 9b and 9c are zero, enter $4,769,800 on line 9e. Otherwise, determine the applicable credit on the amount on line 9d by using Table A—Unified Rate Schedule and enter the result on line 9e. Line 10. Adjustment to Applicable Credit If the decedent made gifts (including gifts made by the decedent's spouse and treated as made by the decedent by reason of gift splitting) after September 8, 1976, and before January 1, 1977, for which the decedent claimed a specific exemption, the applicable credit amount on this estate tax return must be reduced. The reduction is figured by entering 20% of the specific exemption claimed for these gifts. Note. The specific exemption was allowed by section 2521 for gifts made before January 1, 1977. If the decedent did not make any gifts between September 8, 1976, and January 1, 1977, or if the decedent made gifts during that period but did not claim the specific exemption, enter zero. Line 15. Total Credits Generally, line 15 is used to report the total of credit for foreign death taxes (line 13) and credit for tax on prior transfers (line 14). However, you may also use line 15 to report credit taken for federal gift taxes imposed by chapter 12 of the Code, and the corresponding provisions of prior laws, on certain transfers the decedent made before January 1, 1977, that are included in the gross estate. The credit cannot be more than the amount figured by the following formula. Gross estate tax minus (the sum of the state death taxes and unified credit)

Value of included gift Value of gross estate minus (the sum of the deductions for charitable, public, and similar gifts and bequests and marital deduction) When taking the credit for pre-1977 federal gift taxes: • Include the credit in the amount on line 15; and • Identify and enter the amount of the credit you are taking on the dotted line to the left of the entry space for line 15 on page 1 of Form 706 with a notation, “Section 2012 credit.” For more information, see the regulations under section 2012. This computation may be made using Form 4808. Attach a copy of a completed Form 4808 or the computation of the credit. Also, attach all available copies of Forms 709 filed by the decedent, with "Exhibit to Estate Tax Return" entered across the top of the first page of each, to help verify the amounts entered on lines 4 and 7, and the amount of credit taken (on line 15) for pre-1977 federal gift taxes. Canadian marital credit. In addition to using line 15 to report credit for federal gift taxes on pre-1977 gifts, you may also use line 15 to claim the Canadian marital credit, where applicable. When taking the marital credit under the 1995 Canadian Protocol: • Include the credit in the amount on line 15; and • Identify and enter the amount of the credit you are taking on the dotted line to the left of the entry space for line 15 on page 1 of Form 706 with a notation, “Canadian marital credit.” Also, attach a statement to the return that refers to the treaty, waives qualifying domestic trust (QDOT) rights, and shows the computation of the marital credit. See the 1995 Canadian income tax treaty protocol for details on figuring the credit. -10- Instructions for Form 706 (Rev. 09-2022)

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Part 3—Elections by the Executor Note. The election to allow the decedent's surviving spouse to use the decedent's unused exclusion amount is made by filing a timely and complete Form 706. See the instructions for Part 6—Portability of Deceased Spousal Unused Exclusion, later, and sections 2010(c)(4) and (c)(5). Line 1. Alternate Valuation See the example showing the use of Schedule B where the alternate valuation is adopted. Unless you elect at the time the return is filed to adopt alternate valuation, as authorized by section 2032, value all property included in the gross estate as of the date of the decedent's death. Alternate valuation cannot be applied to only a part of the property. You may elect special-use valuation (line 2) in addition to alternate valuation. You may not elect alternate valuation unless the election will decrease both the value of the gross estate and the sum (reduced by allowable credits) of the estate and GST taxes payable by reason of the decedent's death for the property includible in the decedent's gross estate. Elect alternate valuation by checking “Yes” on line 1 and filing Form 706. You may make a protective alternate valuation election by checking “Yes” on line 1, writing the word “protective,” and filing Form 706 using regular values. Once made, the election may not be revoked. The election may be made on a late-filed Form 706, provided it is not filed later than 1 year after the due date (including extensions actually granted). Relief under Regulations sections 301.9100-1 and 301.9100-3 may be available to make an alternate valuation election or a protective alternate valuation election, provided a Form 706 is filed no later than 1 year after the due date of the return (including extensions actually granted). If alternate valuation is elected, value the property included in the gross estate as of the following dates, as applicable. • Any property distributed, sold, exchanged, or otherwise disposed of or separated or passed from the gross estate by any method within 6 months after the decedent's death is valued on the date of distribution, sale, exchange, or other disposition. Value this property on the date it ceases to be a part of the gross estate; for example, on the date the title passes as the result of its sale, exchange, or other disposition. • Any property not distributed, sold, exchanged, or otherwise disposed of within the 6-month period is valued as of 6 months after the date of the decedent's death. • Any property, interest, or estate that is affected by mere lapse of time is valued as of the date of the decedent's death or on the date of its distribution, sale, exchange, or other disposition, whichever occurs first. However, you may change the date of death value to account for any change in value that is not due to a “mere lapse of time” on the date of its distribution, sale, exchange, or other disposition. The property included in the alternate valuation and valued as of 6 months after the date of the decedent's death, TIP or as of some intermediate date (as described above), is the property included in the gross estate on the date of the decedent's death. Therefore, you must first determine what property was part of the gross estate at the decedent's death. Interest. Interest accrued to the date of the decedent's death on bonds, notes, and other interest-bearing obligations is property of the gross estate on the date of death and is included in the alternate valuation. Rent. Rent accrued to the date of the decedent's death on leased real or personal property is property of the gross estate on the date of death and is included in the alternate valuation. Dividends. Outstanding dividends that were declared to stockholders of record on or before the date of the decedent's death are considered property of the gross estate on the date of death and are included in the alternate valuation. Ordinary dividends declared to stockholders of record after the date of the decedent's death are not included in the gross estate on the date of death and are not eligible for alternate valuation. However, if dividends are declared to stockholders of record after the date of the decedent's death so that the shares of stock at the later valuation date do not reasonably represent the same property at the date of the decedent's death, include those dividends (except dividends paid from earnings of the corporation after the date of the decedent's death) in the alternate valuation. On Schedules A through I, you must show the following. 1. What property is included in the gross estate on the date of the decedent's death. 2. What property was distributed, sold, exchanged, or otherwise disposed of within the 6-month period after the decedent's death, and the dates of these distributions, etc. (These two items should be entered in the “Description” column of each schedule. Briefly explain the status or disposition governing the alternate valuation date, such as “Not disposed of within 6 months following death,” “Distributed,” “Sold,” “Bond paid on maturity,” etc. In this same column, describe each item of principal and includible income.) 3. The date of death value, entered in the appropriate value column with items of principal and includible income shown separately. 4. The alternate value, entered in the appropriate value column with items of principal and includible income shown separately. (In the case of any interest or estate, the value of which is affected by lapse of time, such as patents, leaseholds, estates for the life of another, or remainder interests, the value shown under the heading “Alternate value” must be the adjusted value, for example, the value as of the date of death with an adjustment reflecting any difference in its value as of the later date not due to lapse of time.) Note. If any property on Schedules A through I is being valued pursuant to the special rule of Regulations section 20.2010-2(a)(7)(ii), values for those assets are not required to be reported on the schedule. See Part 5—Recapitulation, line 10, later. Distributions, sales, exchanges, and other dispositions of the property within the 6-month period after the decedent's death must be supported by evidence. If the court issued an order of distribution during that period, you must submit a Instructions for Form 706 (Rev. 09-2022) -11-

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certified copy of the order as part of the evidence. The IRS may require you to submit additional evidence, if necessary. If the alternate valuation method is used, the values of life estates, remainders, and similar interests are figured using the age of the recipient on the date of the decedent's death and the value of the property on the alternate valuation date. Line 2. Special-Use Valuation of Section 2032A In general. Under section 2032A, you may elect to value certain farm and closely held business real property at its farm or business use value rather than its FMV. Both special-use valuation and alternate valuation may be elected. To elect special-use valuation, check “Yes” on line 2 and complete and attach Schedule A-1 and its required additional statements. You must file Schedule A-1 and its required attachments with Form 706 for this election to be valid. You may make the election on a late-filed return so long as it’s the first return filed. The total value of the property valued under section 2032A may not be decreased from FMV by more than $1,230,000 for decedents dying in 2022. Real property may qualify for the section 2032A election if: 1. The decedent was a U.S. citizen or resident at the time of death; 2. The real property is located in the United States; 3. At the decedent's death, the real property was used by the decedent or a family member for farming or in a trade or business, or was rented for such use by either the surviving spouse or a lineal descendant of the decedent to a family member on a net cash basis; 4. The real property was acquired from or passed from the decedent to a qualified heir of the decedent; 5. The real property was owned and used in a qualified manner by the decedent or a member of the decedent's family during 5 of the 8 years before the decedent's death; 6. There was material participation by the decedent or a member of the decedent's family during 5 of the 8 years before the decedent's death; and 7. The property meets the following percentage requirements. a. At least 50% of the adjusted value of the gross estate must consist of the adjusted value of real or personal property that was being used as a farm or in a closely held business and that was acquired from, or passed from, the decedent to a qualified heir of the decedent. b. At least 25% of the adjusted value of the gross estate must consist of the adjusted value of qualified farm or closely held business real property. For this purpose, adjusted value is the value of property determined without regard to its special-use value. The value is reduced for unpaid mortgages on the property or any indebtedness against the property, if the full value of the decedent's interest in the property (not reduced by such mortgage or indebtedness) is included in the value of the gross estate. The adjusted value of the qualified real and personal property used in different businesses may be combined to meet the 50% and 25% requirements. Qualified Real Property Qualified use. Qualified use means use of the property as a farm for farming purposes or in a trade or business other than farming. Trade or business applies only to the active conduct of a business. It does not apply to passive investment activities or the mere passive rental of property to a person other than a member of the decedent's family. Also, no trade or business is present in the case of activities not engaged in for profit. Ownership. To qualify as special-use property, the decedent or a member of the decedent's family must have owned and used the property in a qualified use for 5 of the last 8 years before the decedent's death. Ownership may be direct or indirect through a corporation, a partnership, or a trust. If the ownership is indirect, the business must qualify as a closely held business under section 6166. The indirect ownership, when combined with periods of direct ownership, must meet the requirements of section 6166 on the date of the decedent's death and for a period of time that equals at least 5 of the 8 years preceding death. Directly owned property leased by the decedent to a separate closely held business is considered qualified real property if the business entity to which it was rented was a closely held business (as defined by section 6166) for the decedent on the date of the decedent's death and for sufficient time to meet the “5 in 8 years” test explained above. Structures and other real property improvements. Qualified real property includes residential buildings and other structures and real property improvements regularly occupied or used by the owner or lessee of real property (or by the employees of the owner or lessee) to operate a farm or other closely held business. A farm residence that the decedent occupied is considered to have been occupied for the purpose of operating the farm even when a family member and not the decedent was the person materially participating in the operation of the farm. Qualified real property also includes roads, buildings, and other structures and improvements functionally related to the qualified use. Elements of value such as mineral rights that are not related to the farm or business use are not eligible for special-use valuation. Property acquired from the decedent. Property is considered to have been acquired from or to have passed from the decedent if one of the following applies. • The property is considered to have been acquired from or to have passed from the decedent under section 1014(b) (relating to basis of property acquired from a decedent). • The property is acquired by any person from the estate. • The property is acquired by any person from a trust, to the extent the property is includible in the gross estate. Qualified heir. A person is a qualified heir of property if the person is a member of the decedent's family and acquired or received the property from the decedent. If a qualified heir disposes of any interest in qualified real property to any member of the qualified heir’s family, that person will then be treated as the qualified heir for that interest. A member of the family includes only: • An ancestor (parent, grandparent, etc.) of the individual; • The spouse of the individual; -12- Instructions for Form 706 (Rev. 09-2022)

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• The lineal descendant (child, stepchild, grandchild, etc.) of the individual, the individual's spouse, or a parent of the individual; or • The spouse or surviving spouse of any lineal descendant described above. Note. A legally adopted child of an individual is treated as a child of that individual by blood. Material Participation To elect special-use valuation, either the decedent or a member of the decedent’s family must have materially participated in the operation of the farm or other business for at least 5 of the 8 years ending on the date of the decedent's death. The existence of material participation is a factual determination. Passively collecting rents, salaries, draws, dividends, or other income from the farm or other business is not sufficient for material participation, nor is merely advancing capital and reviewing a crop plan and financial reports each season or business year. In determining whether the required participation has occurred, disregard brief periods (that is, 30 days or less) during which there was no material participation, as long as such periods were both preceded and followed by substantial periods (more than 120 days) during which there was uninterrupted material participation. Retirement or disability. If, on the date of death, the time period for material participation could not be met because the decedent was retired or disabled, a substitute period may apply. The decedent must have retired on social security or been disabled for a continuous period ending with death. A person is disabled for this purpose if the person was mentally or physically unable to materially participate in the operation of the farm or other business. The substitute time period for material participation for these decedents is a period totaling at least 5 years out of the 8-year period that ended on the earlier of: • The date the decedent began receiving social security benefits, or • The date the decedent became disabled. Surviving spouse. A surviving spouse who received qualified real property from the predeceased spouse is considered to have materially participated if the surviving spouse was engaged in the active management of the farm or other business. If the surviving spouse died within 8 years of the first spouse's death, you may add the period of material participation of the predeceased spouse to the period of active management by the surviving spouse to determine if the surviving spouse's estate qualifies for special-use valuation. To qualify for this, the property must have been eligible for special-use valuation in the predeceased spouse's estate, though it does not have to have been elected by that estate. For additional details regarding material participation, see Regulations section 20.2032A-3(e). Valuation Methods The primary method of valuing special-use property that is used for farming purposes is the annual gross cash rental method. If comparable gross cash rentals are not available, you can substitute comparable average annual net share rentals. If neither of these is available, or if you so elect, you can use the method for valuing real property in a closely held business. Average annual gross cash rental. Generally, the special-use value of property that is used for farming purposes is determined as follows. 1. Subtract the average annual state and local real estate taxes on actual tracts of comparable real property from the average annual gross cash rental for that same comparable property. 2. Divide the result in (1) by the average annual effective interest rate charged for all new federal land bank loans. See Effective interest rate, later. The computation of each average annual amount is based on the 5 most recent calendar years ending before the date of the decedent's death. Gross cash rental. Generally, gross cash rental is the total amount of cash received in a calendar year for the use of actual tracts of comparable farm real property in the same locality as the property being specially valued. You may not use: • Appraisals or other statements regarding rental value or areawide averages of rentals, • Rents paid wholly or partly in-kind, or • Property for which the amount of rent is based on production. The rental must have resulted from an arm's-length transaction and the amount of rent may not be reduced by the amount of any expenses or liabilities associated with the farm operation or the lease. Comparable property. Comparable property must be situated in the same locality as the qualified real property as determined by generally accepted real property valuation rules. The determination of comparability is based on a number of factors, none of which carries more weight than the others. It is often necessary to value land in segments where there are different uses or land characteristics included in the specially valued land. The following list contains some of the factors considered in determining comparability. • Similarity of soil. • Whether the crops grown would deplete the soil in a similar manner. • Types of soil conservation techniques that have been practiced on the two properties. • Whether the two properties are subject to flooding. • Slope of the land. • For livestock operations, the carrying capacity of the land. • For timbered land, whether the timber is comparable. • Whether the property as a whole is unified or segmented. If segmented, the availability of the means necessary for movement among the different sections. • Number, types, and conditions of all buildings and other fixed improvements located on the properties and their location as it affects efficient management, use, and value of the property. • Availability and type of transportation facilities in terms of costs and of proximity of the properties to local markets. You must specifically identify on the return the property being used as comparable property. Use the type of descriptions used to list real property on Schedule A. Effective interest rate. See Tables 1 and 2 of Rev. Rul. 2022-16, 2022-35 I.R.B. 171, available at Rev. Rul. 2022-16, Instructions for Form 706 (Rev. 09-2022) -13-

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for the average annual effective interest rates in effect for 2022. Net share rental. You may use average annual net share rental from comparable land only if there is no comparable land from which average annual gross cash rental can be determined. Net share rental is the difference between the gross value of produce received by the lessor from the comparable land and the cash operating expenses (other than real estate taxes) of growing the produce that, under the lease, are paid by the lessor. The production of the produce must be the business purpose of the farming operation. For this purpose, produce includes livestock. The gross value of the produce is generally the gross amount received if the produce was disposed of in an arm's-length transaction within the period established by the Department of Agriculture for its price support program. Otherwise, the value is the weighted average price for which the produce sold on the closest national or regional commodities market. The value is figured for the date or dates on which the lessor received (or constructively received) the produce. Valuing a real property interest in a closely held busi- ness. Use this method to determine the special-use valuation for qualifying real property used in a trade or business other than farming. You may also use this method for qualifying farm property if there is no comparable land or if you elect to use it. Under this method, the following factors are considered. • The capitalization of income that the property can be expected to yield for farming or for closely held business purposes over a reasonable period of time with prudent management and traditional cropping patterns for the area, taking into account soil capacity, terrain configuration, and similar factors. • The capitalization of the fair rental value of the land for farming or for closely held business purposes. • The assessed land values in a state that provides a differential or use value assessment law for farmland or closely held business. • Comparable sales of other farm or closely held business land in the same geographical area far enough removed from a metropolitan or resort area so that nonagricultural use is not a significant factor in the sales price. • Any other factor that fairly values the farm or closely held business value of the property. Making the Election Include the words “Section 2032A valuation” in the “Description” column of any Form 706 schedule if section 2032A property is included in the decedent's gross estate. An election under section 2032A need not include all the property in an estate that is eligible for special-use valuation, but sufficient property to satisfy the threshold requirements of section 2032A(b)(1)(B) must be specially valued under the election. If joint or undivided interests (that is, interests as joint tenants or tenants in common) in the same property are received from a decedent by qualified heirs, an election for one heir's joint or undivided interest need not include any other heir's interest in the same property if the electing heir's interest plus other property to be specially valued satisfies the requirements of section 2032A(b)(1)(B). If successive interests (that is, life estates and remainder interests) are created by a decedent in otherwise qualified property, an election under section 2032A is available only for that property (or part) in which qualified heirs of the decedent receive all of the successive interests, and such an election must include the interests of all of those heirs. For example, if a surviving spouse receives a life estate in otherwise qualified property and the spouse's sibling receives a remainder interest in fee, no part of the property may be valued under a section 2032A election. Where successive interests in specially valued property are created, remainder interests are treated as being received by qualified heirs only if the remainder interests are not contingent on surviving a nonfamily member or are not subject to divestment in favor of a nonfamily member. Protective Election You may make a protective election to specially value qualified real property. Under this election, whether or not you may ultimately use special-use valuation depends upon final values (as shown on the return determined following examination of the return) meeting the requirements of section 2032A. To make a protective election, check “Yes” on line 2 and complete Schedule A-1 according to the instructions for Protective election, later. If you make a protective election, complete the initial Form 706 by valuing all property at its FMV. Do not use special-use valuation. Usually, this will result in higher estate and GST tax liabilities than will be ultimately determined if special-use valuation is allowed. The protective election does not extend the time to pay the taxes shown on the return. If you wish to extend the time to pay the taxes, file Form 4768 in adequate time before the due date of the return. See the Instructions for Form 4768. If the estate qualifies for special-use valuation based on the values as finally determined, you must file an amended Form 706 (with a complete section 2032A election) within 60 days after the date of this determination. Prepare the amended return using special-use values under the rules of section 2032A, complete Schedule A-1, and attach all of the required statements. Additional Information For definitions and additional information, see section 2032A and the related regulations. Line 3. Section 6166 Installment Payments If the gross estate includes an interest in a closely held business, you may be able to elect to pay part of the estate tax in installments under section 6166. The maximum amount that can be paid in installments is that part of the estate tax that is attributable to the closely held business; see Determine how much of the estate tax may be paid in installments under section 6166, later. In general, that amount is the amount of tax that bears the same ratio to the total estate tax that the value of the closely held business included in the gross estate bears to the adjusted gross estate. -14- Instructions for Form 706 (Rev. 09-2022)

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Bond or lien. The IRS may require that an estate furnish a surety bond when granting the installment payment election. In the alternative, the executor may consent to elect the special lien provisions of section 6324A in lieu of the bond. The IRS will contact you regarding the specifics of furnishing the bond or electing the special lien. The IRS will make this determination on a case-by-case basis, and you may be asked to provide additional information. If you elect the lien provisions, section 6324A requires that the lien be placed on property having a value equal to the total deferred tax plus 4 years of interest. The property must be expected to survive the deferral period, and does not necessarily have to be property of the estate. In addition, all people with an interest in the designated property must consent to the creation of this lien. Percentage requirements. To qualify for installment payments, the value of the interest in the closely held business that is included in the gross estate must be more than 35% of the adjusted gross estate (the gross estate less expenses, indebtedness, taxes, and losses—Schedules J, K, and L of Form 706 (do not include any portion of the state death tax deduction)). Interests in two or more closely held businesses are treated as an interest in a single business if at least 20% of the total value of each business is included in the gross estate. For this purpose, include any interest held by the surviving spouse that represents the surviving spouse's interest in a business held jointly with the decedent as community property or as joint tenants, tenants by the entirety, or tenants in common. Value. The value used for meeting the percentage requirements is the same value used for determining the gross estate. Therefore, if the estate is valued under alternate valuation or special-use valuation, you must use those values to meet the percentage requirements. Transfers before death. Generally, gifts made before death are not included in the gross estate. However, the estate must meet the 35% requirement by both including in and excluding from the gross estate any gifts made by the decedent in the 3-year period ending on the date of death. Passive assets. In determining the value of a closely held business and whether the 35% requirement is met, do not include the value of any passive assets held by the business. A passive asset is any asset not used in carrying on a trade or business. Any asset used in a qualifying lending and financing business is treated as an asset used in carrying on a trade or business; see section 6166(b)(10) for details. Stock in another corporation is a passive asset unless the stock is treated as held by the decedent because of the election to treat holding company stock as business company stock; see Holding company stock, later. If a corporation owns at least 20% in value of the voting stock of another corporation, or the other corporation had no more than 45 shareholders and at least 80% of the value of the assets of each corporation is attributable to assets used in carrying on a trade or business, then these corporations will be treated as a single corporation and the stock will not be treated as a passive asset. Stock held in the other corporation is not taken into account in determining the 80% requirement. Interest in a closely held business. For purposes of the installment payment election, an interest in a closely held business means: • Ownership of a trade or business carried on as a proprietorship; • An interest as a partner in a partnership carrying on a trade or business, if 20% or more of the total capital interest was included in the gross estate of the decedent or the partnership had no more than 45 partners; or • Stock in a corporation carrying on a trade or business, if 20% or more in value of the voting stock of the corporation is included in the gross estate of the decedent or the corporation had no more than 45 shareholders. The partnership or corporation must be carrying on a trade or business at the time of the decedent's death. For further information on whether certain partnerships or corporations owning real property interests constitute a closely held business, see Rev. Rul. 2006-34, 2006-26 I.R.B. 1171, available at Rev. Rul. 2006-34. In determining the number of partners or shareholders, a partnership or stock interest is treated as owned by one partner or shareholder if it is community property or held by spouses as joint tenants, tenants in common, or tenants by the entirety. Property owned directly or indirectly by or for a corporation, partnership, estate, or trust is treated as owned proportionately by or for its shareholders, partners, or beneficiaries. For trusts, only beneficiaries with present interests are considered. The interest in a closely held farm business includes the interest in the residential buildings and related improvements occupied regularly by the owners, lessees, and employees operating the farm. Holding company stock. The executor may elect to treat as business company stock the portion of any holding company stock that represents direct ownership (or indirect ownership through one or more other holding companies) in a business company. A holding company is a corporation holding stock in another corporation. A business company is a corporation carrying on a trade or business. In general, this election applies only to stock that is not readily tradable. However, the election can be made if the business company stock is readily tradable, as long as all of the stock of each holding company is not readily tradable. For purposes of the 20%-voting-stock requirement, stock is treated as voting stock to the extent the holding company owns voting stock in the business company. If the executor makes this election, the first installment payment is due when the estate tax return is filed. The 5-year deferral for payment of the tax, as discussed later under Time for payment, does not apply. In addition, the 2% interest rate, discussed later under Interest computation, will not apply. Also, if the business company stock is readily tradable, as explained above, the tax must be paid in five installments. Determine how much of the estate tax may be paid in installments under section 6166. To determine whether the election may be made, you must figure the adjusted gross estate. (See the Line 3 Worksheet—Adjusted Gross Estate below.) To determine the value of the adjusted gross estate, subtract the deductions (Schedules J, K, and L) from the value of the gross estate. Instructions for Form 706 (Rev. 09-2022) -15-

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To determine over how many installments the estate tax may be paid, please refer to sections 6166(a), (b)(7), (b)(8), and (b)(10). Time for payment. Under the installment method, the executor may elect to defer payment of the qualified estate tax, but not interest, for up to 5 years from the original payment due date. After the first installment of tax is paid, you must pay the remaining installments annually by the date 1 year after the due date of the preceding installment. There can be no more than 10 installment payments. Interest on the unpaid portion of the tax is not deferred and must be paid annually. Interest must be paid at the same time as and as a part of each installment payment of the tax. Acceleration of payments. If the estate fails to make payments of tax or interest within 6 months of the due date, the IRS may terminate the right to make installment payments and force an acceleration of payment of the tax upon notice and demand. Generally, if any portion of the interest in the closely held business which qualifies for installment payments is distributed, sold, exchanged, or otherwise disposed of, or money and other property attributable to such an interest is withdrawn, and the aggregate of those events equals or exceeds 50% of the value of the interest, then the right to make installment payments will be terminated, and the unpaid portion of the tax will be due upon notice and demand. See section 6166(g)(1)(A). Interest computation. A special interest rate applies to installment payments. For decedents dying in 2022, the interest rate is 2% on the lesser of: • $656,000, or • The amount of the estate tax that is attributable to the closely held business and that is payable in installments. 2% portion. The 2% portion is an amount equal to the amount of the tentative estate tax (on $1 million plus the applicable exclusion amount in effect) minus the applicable credit amount in effect. However, if the amount of estate tax extended under section 6166 is less than the amount figured above, the 2% portion is the lesser amount. Inflation adjustment. The $1 million amount used to figure the 2% portion is indexed for inflation for the estates of decedents who died in a calendar year after 1998. For an estate of a decedent who died in 2022, the dollar amount used to determine the “2% portion” of the estate tax payable in installments under section 6166 is $1,640,000. Computation. Interest on the portion of the tax in excess of the 2% portion is figured at 45% of the annual rate of interest on underpayments. This rate is based on the federal short-term rate and is announced quarterly by the IRS in the Internal Revenue Bulletin. If you elect installment payments and the estate tax due is more than the maximum amount to which the 2% interest rate applies, each installment payment is deemed to comprise both tax subject to the 2% interest rate and tax subject to 45% of the regular underpayment rate. The amount of each installment that is subject to the 2% rate is the same as the percentage of total tax payable in installments that is subject to the 2% rate. The interest paid on installment payments is not deductible as an administrative expense of the estate. Making the election. If you check this line to make a final election, you must attach the notice of election described in Regulations section 20.6166-1(b). If you check this line to make a protective election, you must attach a notice of protective election as described in Regulations section 20.6166-1(d). Regulations section 20.6166-1(b) requires that the notice of election is made by attaching to a timely filed estate tax return the following information. • The decedent's name and taxpayer identification number (TIN) as they appear on the estate tax return. • The amount of tax that is to be paid in installments. • The date selected for payment of the first installment. • The number of annual installments, including first installment, in which the tax is to be paid. • The properties shown on the estate tax return that are the closely held business interest (identified by schedule and item number). • The facts that formed the basis for the executor's conclusion that the estate qualifies for payment of the estate tax in installments. You may also elect to pay certain GST taxes in installments. See section 6166(i). Line 4. Reversionary or Remainder Interests For details of this election, see section 6163 and the related regulations. Part 4—General Information Authorization Completing the authorization will authorize one attorney, accountant, or enrolled agent to represent the estate and receive confidential tax information, but will not authorize the representative to enter into closing agreements for the estate. If you would like to authorize your representative to CAUTION ! Line 3 Worksheet—Adjusted Gross Estate 1. Enter the value of the decedent's interest in closely held business(es) included in the gross estate (less value of passive assets, as mentioned in section 6166(b)(9)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter the value of the gross estate (Form 706, Part 5, line 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Add lines 18, 19, and 20 from Form 706, Part 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Subtract line 3 from line 2 to figure the adjusted gross estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Divide line 1 by line 4 to figure the value the business interest bears to the value of the adjusted gross estate. For purposes of this calculation, carry the decimal to the sixth place; the IRS will make this adjustment for purposes of determining the correct amount. If this amount is less than 0.350000, the estate does not qualify to make the election under section 6166 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Multiply line 5 by the amount on line 16 of Form 706, Part 2. This is the maximum amount of estate tax that may be paid in installments under section 6166. (Certain GST taxes may be deferred as well; see section 6166(i) for more information.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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enter into agreements or perform other designated acts on behalf of the estate, you must file Form 2848 with Form 706. Note. If you intend for the representative to represent the estate before the IRS, the representative must complete and sign this authorization. Complete and attach Form 2848 if you would like to authorize: • Persons other than attorneys, accountants, or enrolled agents to represent the estate; • More than one person to receive confidential information or represent the estate; or • Someone to sign agreements, consents, waivers, or other documents for the estate. Filing a completed Form 2848 with this return may expedite processing of the Form 706. If you wish only to authorize someone to inspect and/or receive confidential tax information (but not to represent you before the IRS), complete and file Form 8821. Line 3 Enter the marital status of the decedent at the time of death by checking the appropriate box on line 3a. If the decedent was married at the time of death, complete line 4. If the decedent had one or more prior marriages, complete line 3b by providing the name and SSN of each former spouse, the date(s) the marriage ended, and specify whether the marriage ended by annulment, divorce decree, or death of spouse. If the prior marriage ended in death and the predeceased spouse died after December 31, 2010, complete Part 6—Portability of Deceased Spousal Unused Exclusion, Section D, if the estate of the predeceased spouse elected to allow the decedent to use any unused exclusion amount. For more information, see section 2010(c) (4) and related regulations. Line 4 Complete line 4 whether or not there is a surviving spouse and whether or not the surviving spouse received any benefits from the estate. If there was no surviving spouse on the date of the decedent's death, enter “None” on line 4a and leave lines 4b and 4c blank. The value entered on line 4c need not be exact. See Amount under line 5, later. Note. Do not include any DSUE amount transferred to the surviving spouse in the total entered on line 4c. Line 5 Name. Enter the name of each individual, trust, or estate that received (or will receive) benefits of $5,000 or more from the estate directly as an heir, next-of-kin, devisee, or legatee; or indirectly (for example, as beneficiary of an annuity or insurance policy, shareholder of a corporation, or partner of a partnership that is an heir, etc.). Identifying number. Enter the SSN of each individual beneficiary listed. If the number is unknown, or the individual has no number, please indicate “unknown” or “none.” For trusts and other estates, enter the employer identification number (EIN). Relationship. For each individual beneficiary, enter the relationship (if known) to the decedent by reason of blood, marriage, or adoption. For trust or estate beneficiaries, indicate “TRUST” or “ESTATE.” Amount. Enter the amount actually distributed (or to be distributed) to each beneficiary including transfers during the decedent's life from Schedule G required to be included in the gross estate. The value to be entered need not be exact. A reasonable estimate is sufficient. For example, where precise values cannot readily be determined, as with certain future interests, a reasonable approximation should be entered. The total of these distributions should approximate the amount of gross estate reduced by funeral and administrative expenses, debts and mortgages, bequests to surviving spouse, charitable bequests, and any federal and state estate and GST taxes paid (or payable) relating to the benefits received by the beneficiaries listed on lines 4 and 5. All distributions of less than $5,000 to specific beneficiaries may be included with distributions to unascertainable beneficiaries on the line provided. Line 6. Protective Claim for Refund If you answered “Yes,” complete Schedule PC for each claim. Two copies of each Schedule PC must be filed with the return. A protective claim for refund may be filed when there is an unresolved claim or expense that will not be deductible under section 2053 before the expiration of the period of limitation under section 6511(a). To preserve the estate's right to a refund once the claim or expense has been finally determined, the protective claim must be filed before the end of the limitations period. For more information on how to file a protective claim for refund with this Form 706, see the instructions for Schedule PC, later. Line 7. Section 2044 Property If you answered “Yes,” these assets must be shown on Schedule F. Section 2044 property is property for which a previous section 2056(b)(7) election (QTIP election) has been made, or for which a similar gift tax election (section 2523) has been made. For more information, see the instructions for Schedule F, later. Line 9. Insurance Not Included in the Gross Estate If you answered “Yes” to either line 9a or 9b, for each policy you must complete and attach Schedule D, Form 712, and an explanation of why the policy or its proceeds are not includible in the gross estate. Line 11. Partnership Interests and Stock in Close Corporations If you answered “Yes” on line 11a, you must include full details for partnerships (including family limited partnerships), unincorporated businesses, and limited liability companies (LLCs) on Schedule F (Schedule E if the partnership interest is jointly owned). Also include full details for fractional interests in real estate on Schedule A and for stock of inactive or close corporations on Schedule B. Value these interests using the rules of Regulations section 20.2031-2 (stocks) or 20.2031-3 (other business interests). A close corporation is a corporation whose shares are owned by a limited number of shareholders. Often, one family holds the entire stock issue. As a result, little, if any, trading of the stock takes place. There is, therefore, no Instructions for Form 706 (Rev. 09-2022) -17-

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established market for the stock, and those sales that do occur are at irregular intervals and seldom reflect all the elements of a representative transaction as defined by FMV. Line 13. Trusts If you answered “Yes” on either line 13a or line 13b, attach a copy of the trust instrument for each trust. Complete Schedule G if you answered “Yes” on line 13a and Schedule F if you answered “Yes” on line 13b. Line 15. Foreign Accounts Check “Yes” on line 15 if the decedent at the time of death had an interest in or signature or other authority over a financial account in a foreign country, such as a bank account, securities account, an offshore trust, or other financial account. Part 5—Recapitulation Gross Estate—Items 1 Through 11 Items 1 through 9. You must make an entry in each of items 1 through 9. If the gross estate does not contain any assets of the type specified by a given item, enter zero for that item. Entering zero for any of items 1 through 9 is a statement by the executor, made under penalties of perjury, that the gross estate does not contain any includible assets covered by that item. Do not enter any amounts in the “Alternate value” column unless you elected alternate valuation on Part 3—Elections by the Executor, line 1. Note. If estimating the value of one or more assets pursuant to the special rule of Regulations section 20.2010-2(a)(7)(ii), do not enter values for those assets in items 1 through 9. Total the estimated values for those assets and follow the instructions for item 10. Which schedules to attach for items 1 through 9. You must attach the following. • Schedule F. Answer its questions even if you report no assets on it. • Schedules A, B, and C, if the gross estate includes any (1) Real Estate, (2) Stocks and Bonds, or (3) Mortgages, Notes, and Cash, respectively. • Schedule D, if the gross estate includes any life insurance or if you answered “Yes” to question 9a of Part 4—General Information. • Schedule E, if the gross estate contains any jointly owned property or if you answered “Yes” to question 10 of Part 4—General Information. • Schedule G, if the decedent made any of the lifetime transfers to be listed on that schedule or if you answered “Yes” to question 12 or 13a of Part 4—General Information. • Schedule H, if you answered “Yes” to question 14 of Part 4—General Information. • Schedule I, if you answered “Yes” to question 16 of Part 4—General information. Item 10. Under Regulations section 20.2010-2(a)(7)(ii), if the total value of the gross estate and adjusted taxable gifts is less than the basic exclusion amount (see section 6018(a)) and Form 706 is being filed only to elect portability of the DSUE amount, the estate is not required to report the value of certain property eligible for the marital or charitable deduction. For this property being reported on Schedules A, B, C, D, E, F, G, H, and I, the executor must figure the best estimate of the value. Do not include the estimated value on the line corresponding to the schedule on which the property was reported. Instead, total the estimated value of the assets subject to the special rule and enter on line 10 the amount from the Table of Estimated Values, later, that corresponds to that total. Note. The special rule does not apply if the valuation of the asset is needed to determine the estate's eligibility for the provisions of section 2032, 2032A, 2652(a)(3), or 6166, or any other provision of the Code or regulations. Note. As applies to all other values reported on Form 706, estimates of the value of property subject to the special rule of Regulations section 20.2010-2(a)(7)(ii) must result from the executor’s exercise of due diligence and are subject to penalties of perjury. Exclusion—Item 12 Item 12. Conservation easement exclusion. Complete and attach Schedule U (along with any required attachments) to claim the exclusion on this line. Deductions—Items 14 Through 23 Items 14 through 22. Attach the appropriate schedules for the deductions claimed. Item 18. If item 17 is less than or equal to the value (at the time of the decedent's death) of the property subject to claims, enter the amount from item 17 on item 18. If the amount on item 17 is more than the value of the property subject to claims, enter the greater of: • The value of the property subject to claims, or • The amount actually paid at the time the return is filed. In no event should you enter more on item 18 than the amount on item 17. See section 2053 and the related regulations for more information. Item 23. Under Regulations section 20.2010-2(a)(7)(ii), if the total value of the gross estate and adjusted taxable gifts is less than the basic exclusion amount (see section 6018(a)) and Form 706 is being filed only to elect portability of the DSUE amount, the estate is not required to report the value of certain property eligible for the marital or charitable deduction. For this property being reported on Schedule M or O, enter on line 23 the amount from line 10. Part 6—Portability of Deceased Spousal Unused Exclusion (DSUE) Section 2010(c)(4) authorizes estates of decedents dying after December 31, 2010, to elect to transfer any unused exclusion to the surviving spouse. The amount received by the surviving spouse is called the deceased spousal unused exclusion (DSUE) amount. If the executor of the decedent’s estate elects transfer, or portability, of the DSUE amount, the surviving spouse can apply the DSUE amount received from the estate of the surviving spouse’s last deceased spouse (defined later) against any tax liability arising from subsequent lifetime gifts and transfers at death. Note. A nonresident surviving spouse who is not a citizen of the United States may not take into account the DSUE -18- Instructions for Form 706 (Rev. 09-2022)

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amount of a deceased spouse, except to the extent allowed by treaty with the nonresident surviving spouse’s country of citizenship. Last Deceased Spouse Limitation The last deceased spouse is the most recently deceased person who was married to the surviving spouse at the time of that person’s death. The identity of the last deceased spouse is determined as of the day a taxable gift is made, or in the case of a transfer at death, the date of the surviving spouse's death. The identity of the last deceased spouse is not impacted by whether the decedent's estate elected portability or whether the last deceased spouse had any DSUE amount available. Remarriage also does not affect the designation of the last deceased spouse and does not prevent the surviving spouse from applying the DSUE amount to taxable transfers. When a taxable gift is made, the DSUE amount received from the last deceased spouse is applied before the surviving spouse’s basic exclusion amount. A surviving spouse may use the DSUE amount of the last deceased spouse to offset the tax on any taxable transfer made after the deceased spouse's death. A surviving spouse who has more than one predeceased spouse is not precluded from using the DSUE amount of each spouse in succession. A surviving spouse may not use the sum of DSUE amounts from multiple predeceased spouses at one time nor may the DSUE amount of a predeceased spouse be applied after the death of a subsequent spouse. Making the Election A timely filed and complete Form 706 is required to elect portability of the DSUE amount to a surviving spouse. The filing requirement applies to all estates of decedents choosing to elect portability of the DSUE amount, regardless of the size of the estate. A timely filed return is one that is filed on or before the due date of the return, including extensions. See Rev. Proc. 2022-32 (superseding Rev. Proc. 2017-34) for the simplified procedures for late elections. The timely filing of a complete Form 706 with DSUE will be deemed a portability election if there is a surviving spouse. The election is effective as of the decedent’s date of death, so the DSUE amount received by a surviving spouse may be applied to any transfer occurring after the decedent’s death. A portability election is irrevocable, unless an adjustment or amendment to the election is made on a subsequent return filed on or before the due date. Note. Under Regulations section 20.2010-2(a)(5), the executor of an estate of a nonresident decedent who was not a citizen of the United States at the time of death cannot make a portability election. If an executor is appointed, qualified, and acting with the United States on behalf of the decedent’s estate, only that executor may make or opt out of a portability election. If there is no executor, see Regulations section 20.2010-2(a)(6)(ii). Opting Out If an estate files a Form 706 but does not wish to make the portability election, the executor can opt out of the portability election by checking the box indicated in Section A of this Part. If no return is required under section 6018(a), not filing Form 706 will avoid making the election. Figuring the DSUE Amount Regulations section 20.2010-2(b)(1) requires that a decedent's DSUE be figured on the estate tax return. The DSUE amount is the lesser of (a) the basic exclusion amount in effect on the date of death of the decedent whose DSUE is being figured, or (b) the decedent's applicable exclusion amount less the amount on line 5 of Part 2—Tax Computation on the Form 706 for the estate of the decedent. Amounts on which gift taxes were paid are excluded from adjusted taxable gifts for the purpose of this computation. When a surviving spouse applies the DSUE amount to a lifetime gift or bequest at death, the IRS may examine any return of a predeceased spouse whose executor elected portability to verify the allowable DSUE amount. The DSUE amount may be adjusted or eliminated as a result of the examination; however, the IRS may only make an assessment of additional tax on the return of the predeceased spouse within the applicable limitations period under section 6501. Special Rule Where Value of Certain Property Not Required To Be Reported on Form 706 The regulations provide that executors of estates who are not otherwise required to file Form 706 under section 6018(a) do not have to report the value of certain property qualifying for the marital or charitable deduction. For such property, the executor may estimate the value in good faith and with the due diligence to be afforded all assets includible in the gross estate. The amount reported on Form 706 will correspond to a range of dollar values and will be included in the value of the gross estate shown on Part 2—Tax Computation, line 1. See the instructions for Part 5—Recapitulation, lines 10 and 23, earlier, for more details. Specific Instructions Portability Election. If you intend to elect portability of the DSUE amount, timely filing a complete Form 706 is all that is required. Complete Section B if any assets of the estate are being transferred to a qualified domestic trust and complete Section C of this Part to figure the DSUE amount that will be transferred to the surviving spouse. Section A. Opting Out of Portability. If you are filing Form 706 and do not wish to elect portability, then check the box indicated. Do not complete Section B or C. Section B. Portability and Qualified Domestic Trusts (QDOTs). A QDOT allows the estate of a decedent to bequeath property to a surviving spouse who is not a citizen of the United States and still receive a marital deduction. When property passes to a QDOT, estate tax is imposed under section 2056A as distributions are made from the trust. When a QDOT is established and there is a DSUE amount, the executor of the decedent’s estate will determine a preliminary DSUE amount for the purpose of electing portability. This amount will decrease as section 2056A distributions are made. In estates with a QDOT, the DSUE amount generally may not be applied against tax arising from lifetime gifts because it will not be available to the surviving spouse until it is finally determined, usually upon the death of the surviving spouse or when the QDOT is terminated. Note. If a surviving spouse who is not a citizen of the United States becomes a citizen and the section 2056A tax no longer applies to the assets of the QDOT, as of the date the surviving spouse becomes a U.S. citizen, the DSUE amount -20- Instructions for Form 706 (Rev. 09-2022)

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is considered final and is available for application by the surviving spouse. See Regulations sections 20.2010-2(c)(4), 20.2010-3(c)(3), and 25.2505-2(d)(3). Check the appropriate box in this section and see the instructions for Schedule M if more information is needed about QDOT. Section C. DSUE Amount Portable to Decedent's Surviv- ing Spouse. Complete Section C only if electing portability of the DSUE amount to the surviving spouse. On line 1, enter the decedent’s applicable exclusion amount from Part 2—Tax Computation, line 9d. The applicable exclusion amount is the sum of the basic exclusion amount for the year of death, any DSUE amount received from a predeceased spouse, if applicable, and any Restored Exclusion Amount. Line 2 is reserved. On line 3, enter the value of the cumulative lifetime gifts on which gift tax was paid or payable. This amount is figured on line 6 of the Line 7 Worksheet, Part B, as the total of Row (r) from the Line 7 Worksheet, Part A. Enter the amount as it appears on line 6 of the Line 7 Worksheet, Part B. Figure the unused exclusion amount on line 9. The DSUE amount available to the surviving spouse will be the lesser of this amount or the basic exclusion amount shown on Part 2—Tax Computation, line 9a. Enter the DSUE amount as determined on line 10. Section D. DSUE Amount Received From Predeceased Spouse(s). Complete Section D if the decedent was a surviving spouse who received a DSUE amount from one or more predeceased spouses. Section D requests information on all DSUE amounts received from the decedent’s last deceased spouse and any previously deceased spouses. Each line in the chart should reflect a different predeceased spouse; enter the calendar year(s) in column F. In Part 1, provide information on the decedent’s last deceased spouse. In Part 2, provide information as requested if the decedent had any other predeceased spouse whose executor made the portability election. Any remaining DSUE amount which was not used prior to the death of a subsequent spouse is not considered in this calculation and cannot be applied against any taxable transfer. In column E, total only the amounts of DSUE received and used from spouses who died before the decedent’s last deceased spouse. Add this amount to the amount from Part 1, column D, if any, to determine the decedent’s total DSUE amount. Schedule A—Real Estate If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. If the total gross estate contains any real estate, complete Schedule A and file it with the return. On Schedule A, list real estate the decedent owned or had contracted to purchase. Number each parcel in the left-hand column. CAUTION ! Schedule A—Example 1 In this example, alternate valuation is not adopted; the date of death is January 1, 2022. Item number Description Alternate valuation date Alternate value Value at date of death 1 House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent of $8,100 due at the end of each quarter, February 1, May 1, August 1, and November 1. Value based on appraisal, copy of which is attached . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $550,000 Rent due on item 1 for quarter ending November 1, 2021, but not collected at date of death . . . 8,100 Rent accrued on item 1 for November and December 2021 . . . . . . . . . . . . . . . . . . . . . . 5,400 2 House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $1,800 payable monthly. Value based on appraisal, copy of which is attached . . . . . . . . . . . . . . . . . . . . . 375,000 Rent due on item 2 for December 2021, but not collected at death . . . . . . . . . . . . . . . . . . 1,800 Schedule A—Example 2 In this example, alternate valuation is adopted; the date of death is January 1, 2022. Item number Description Alternate valuation date Alternate value Value at date of death 1 House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent of $8,100 due at the end of each quarter, February 1, May 1, August 1, and November 1. Value based on appraisal, copy of which is attached. Not disposed of within 6 months of date of death . . . . . . . . . . . . . 7/1/22 $535,000 $550,000 Rent due on item 1 for quarter ending November 1, 2021, but not collected until February 1, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/1/22 8,100 8,100 Rent accrued on item 1 for November and December 2021, collected on February 1, 2022 . . . 2/1/22 5,400 5,400 2 House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $1,800 payable monthly. Value based on appraisal, copy of which is attached. Property exchanged for farm on May 1, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5/1/22 369,000 375,000 Rent due on item 2 for December 2021, but not collected until February 1, 2022 . . . . . . . . . . 2/1/22 1,800 1,800 Instructions for Form 706 (Rev. 09-2022) -21-

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Describe the real estate in enough detail so that the IRS can easily locate it for inspection and valuation. For each parcel of real estate, report the area and, if the parcel is improved, describe the improvements. For city or town property, report the street and number, ward, subdivision, block and lot, etc. For rural property, report the township, range, landmarks, etc. If any item of real estate is subject to a mortgage for which the decedent's estate is liable, that is, if the indebtedness may be charged against other property of the estate that is not subject to that mortgage, or if the decedent was personally liable for that mortgage, you must report the full value of the property in the value column. Enter the amount of the mortgage under “Description” on this schedule. The unpaid amount of the mortgage may be deducted on Schedule K. If the decedent’s estate is not liable for the amount of the mortgage, report only the value of the equity of redemption (or value of the property less the indebtedness) in the value column as part of the gross estate. Do not enter any amount less than zero. Do not deduct the amount of indebtedness on Schedule K. Also list on Schedule A real property the decedent contracted to purchase. Report the full value of the property and not the equity in the value column. Deduct the unpaid part of the purchase price on Schedule K. Report the value of real estate without reducing it for homestead or other exemption, or the value of dower, curtesy, or a statutory estate created instead of dower or curtesy. Explain how the reported values were determined and attach copies of any appraisals. Schedule A-1—Section 2032A Valuation The election to value certain farm and closely held business property at its special-use value is made by checking “Yes” on Form 706, Part 3—Elections by the Executor, line 2. Schedule A-1 is used to report the additional information that must be submitted to support this election. In order to make a valid election, you must complete Schedule A-1 and attach all of the required statements and appraisals. For definitions and additional information concerning special-use valuation, see section 2032A and the related regulations. Part 1. Type of Election Estate and GST tax elections. If you elect special-use valuation for the estate tax, you must also elect special-use valuation for the GST tax and vice versa. Protective election. To make the protective election described in the separate instructions for Part 3—Elections by the Executor, line 2, you must complete the following. • Check the box in Part 1. Type of Election. • Enter the decedent's name and SSN in the spaces provided at the top of Schedule A-1. • Complete Part 2. Notice of Election, line 1, and column A for lines 3 and 4. For purposes of the protective election, list on line 3 all of the real property that passes to the qualified heirs even though some of the property will be shown on line 2 when the additional notice of election is subsequently filed. You don’t need to complete columns B through D of lines 3 and 4 or any other line entries on Schedule A-1. Completing Schedule A-1 as described above constitutes a Notice of Protective Election as described in Regulations section 20.2032A-8(b). Part 2. Notice of Election Line 10. Because the special-use valuation election creates a potential tax liability for the recapture tax of section 2032A(c), you must list each person who receives an interest in the specially valued property on Schedule A-1. If there are more than eight persons who receive interests, use an additional sheet that follows the format of line 10. In the columns “Fair market value” and “Special-use value,” enter the total respective values of all the specially valued property interests received by each person. GST Tax Savings To figure the additional GST tax due upon disposition (or cessation of qualified use) of the property, each “skip person” (as defined in the instructions for Schedule R) who receives an interest in the specially valued property must know the total GST tax savings all interests in specially valued property received. The GST tax savings is the difference between the total GST tax that was imposed on all interests in specially valued property received by the skip person valued at their special-use value and the total GST tax that would have been imposed on the same interests received by the skip person had they been valued at their FMV. Because the GST tax depends on the executor's allocation of the GST exemption and the grandchild exclusion, the skip person who receives the interests is unable to figure this GST tax savings. Therefore, for each skip person who receives an interest in specially valued property, you must attach a calculation of the total GST tax savings attributable to that person's interests in specially valued property. How to figure the GST tax savings. Before figuring each skip person's GST tax savings, complete Schedules R and R-1 for the entire estate (using the special-use values). For each skip person, complete two Schedules R (Parts 2 and 3 only) as worksheets, one showing the interests in specially valued property received by the skip person at their special-use value and one showing the same interests at their FMV. If the skip person received interests in specially valued property that were shown on Schedule R-1, show these interests on the Schedule R, Parts 2 and 3 worksheets, as appropriate. Do not use Schedule R-1 as a worksheet. Completing the special-use value worksheets. On Schedule R, Parts 2 and 3, lines 2 through 4 and 6, enter -0-. Completing the fair market value worksheets. • Schedule R, Parts 2 and 3, lines 2 and 3, fixed taxes and other charges. If valuing the interests at FMV (instead of special-use value) causes any of these taxes and charges to increase, enter the increased amount (only) on these lines and attach an explanation of the increase. Otherwise, enter -0-. • Schedule R, Parts 2 and 3, line 6—GST exemption allocation. If you completed Schedule R, Part 1, line 10, enter on line 6 the amount shown for the skip person on the line 10 special-use allocation schedule you attached -22- Instructions for Form 706 (Rev. 09-2022)

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to Schedule R. If you did not complete Schedule R, Part 1, line 10, enter -0- on line 6. Total GST tax savings. For each skip person, subtract the tax amount on line 10, Part 2, of the special-use value worksheet from the tax amount on line 10, Part 2, of the fair market value worksheet. This difference is the skip person's total GST tax savings. Part 3. Agreement to Special Valuation Under Section 2032A The agreement to special valuation is required under sections 2032A(a)(1)(B) and (d)(2) and must be signed by all parties who have any interest in the property being valued based on its qualified use as of the date of the decedent's death. An interest in property is an interest that, as of the date of the decedent's death, can be asserted under applicable law so as to affect the disposition of the specially valued property by the estate. Any person who at the decedent's death has any such interest in the property, whether present, future, vested, or contingent, must enter into the agreement. Included are the following. • Owners of remainder and executory interests; • Holders of general or special powers of appointment; • Beneficiaries of a gift over in default of exercise of any such power; • Joint tenants and holders of similar undivided interests when the decedent held only a joint or undivided interest in the property or when only an undivided interest is specially valued; and • Trustees of trusts and representatives of other entities holding title to or any interests in the property. An heir who has the power under local law to challenge a will and thereby affect disposition of the property is not, however, considered to be a person with an interest in property under section 2032A solely by reason of that right. Likewise, creditors of an estate are not such persons solely by reason of their status as creditors. If persons required to enter into the agreement desire that an agent act for them or cannot legally bind themselves due to infancy or other incompetency, or due to death before the election under section 2032A is timely exercised, a representative authorized by local law to bind persons in agreements of this nature may sign the agreement on the person’s behalf. The IRS will contact the agent designated in the agreement on all matters relating to continued qualification under section 2032A of the specially valued real property and on all matters relating to the special lien arising under section 6324B. It is the duty of the agent as attorney-in-fact for the parties with interests in the specially valued property to furnish the IRS with any requested information and to notify the IRS of any disposition or cessation of qualified use of any part of the property. Checklist for Section 2032A Election When making the special-use valuation election on Schedule A-1, please use this checklist to ensure that you are providing everything necessary to make a valid election. To have a valid special-use valuation election under section 2032A, you must file, in addition to the federal estate tax return, (a) a notice of election (Schedule A-1, Part 2), and CAUTION ! (b) a fully executed agreement (Schedule A-1, Part 3). You must include certain information in the notice of election. To ensure that the notice of election includes all of the information required for a valid election, use the following checklist. The checklist is for your use only. Do not file it with the return. Does the notice of election include the decedent's name and SSN as they appear on the estate tax return? Does the notice of election include the relevant qualified use of the property to be specially valued? Does the notice of election describe the items of real property shown on the estate tax return that are to be specially valued and identify the property by the Form 706 schedule and item number? Does the notice of election include the FMV of the real property to be specially valued and also include its value based on the qualified use (determined without the adjustments provided in section 2032A(b)(3)(B))? Does the notice of election include the adjusted value (as defined in section 2032A(b)(3)(B)) of (a) all real property that both passes from the decedent and is used in a qualified use, without regard to whether it is to be specially valued; and (b) all real property to be specially valued? Does the notice of election include (a) the items of personal property shown on the estate tax return that pass from the decedent to a qualified heir, and that are used in qualified use; and (b) the total value of such personal property adjusted under section 2032A(b)(3)(B)? Does the notice of election include the adjusted value of the gross estate? (See section 2032A(b)(3) (A).) Does the notice of election include the method used to determine the special-use value? Does the notice of election include copies of written appraisals of the FMV of the real property? Does the notice of election include a statement that the decedent and/or a member of the decedent’s family has owned all of the specially valued property for at least 5 years of the 8 years immediately preceding the date of the decedent's death? Instructions for Form 706 (Rev. 09-2022) -23-

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Does the notice of election include a statement as to whether there were any periods during the 8-year period preceding the decedent's date of death during which the decedent or a member of the decedent’s family did not (a) own the property to be specially valued, (b) use it in a qualified use, or (c) materially participate in the operation of the farm or other business? (See section 2032A(e)(6).) Does the notice of election include, for each item of specially valued property, the name of every person who has an interest in that item of specially valued property and the following information about each such person: (a) the person's address, (b) the person's TIN, (c) the person's relationship to the decedent, and (d) the value of the property interest passing to that person based on both FMV and qualified use? Does the notice of election include affidavits describing the activities constituting material participation and the identities of the material participants? Does the notice of election include a legal description of each item of specially valued property? (Note. The legal description must be the complete legal description of the property. An abbreviated description is not sufficient.) (In the case of an election made for qualified woodlands, the information included in the notice of election must include the reason for entitlement to the woodlands election.) Any election made under section 2032A will not be valid unless a properly executed agreement (Schedule A-1, Part 3) is filed with the estate tax return. To ensure that the agreement satisfies the requirements for a valid election, use the following checklist. The checklist is for your use only. Do not file it with the return. Has the agreement been signed by each qualified heir having an interest in the property being specially valued? Has every qualified heir expressed consent to personal liability under section 2032A(c) in the event of an early disposition or early cessation of qualified use? Is the agreement that is actually signed by the qualified heirs in a form that is binding on all of the qualified heirs having an interest in the specially valued property? Does the agreement designate an agent to act for the parties to the agreement in all dealings with the IRS on matters arising under section 2032A? Has the agreement been signed by the designated agent and does it give the address of the agent? Schedule B—Stocks and Bonds If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. Before completing Schedule B, see the examples illustrating the alternate valuation dates being adopted and not being adopted, later. If the total gross estate contains any stocks or bonds, you must complete Schedule B and file it with the return. On Schedule B, list the stocks and bonds included in the decedent's gross estate. Number each item in the left-hand column. Note. Unless specifically exempted by an estate tax provision of the Code, bonds that are exempt from federal income tax are not exempt from estate tax. You should list these bonds on Schedule B. Public housing bonds includible in the gross estate must be included at their full value. If you paid any estate, inheritance, legacy, or succession tax to a foreign country on any stocks or bonds included in this schedule, group those stocks and bonds together and label them “Subjected to Foreign Death Taxes.” List interest and dividends on each stock or bond on a separate line. Indicate as a separate item dividends that have not been collected at death and are payable to the decedent or the estate because the decedent was a stockholder of record on the date of death. However, if the stock is being traded on an exchange and is selling ex-dividend on the date of the decedent's death, do not include the amount of the dividend as a separate item. Instead, add it to the ex-dividend quotation in determining the FMV of the stock on the date of the decedent's death. Dividends declared on shares of stock before the death of the decedent but payable to stockholders of record on a date after the decedent's death are not includible in the gross estate for federal estate tax purposes and should not be listed here. Description Stocks. For stocks, indicate: • Number of shares; • Whether common or preferred; • Issue; • Par value where needed for identification; • Price per share; • Exact name of corporation; • Principal exchange upon which sold, if listed on an exchange; and • Nine-digit CUSIP number (defined later). CAUTION ! TIP -24- Instructions for Form 706 (Rev. 09-2022)

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Bonds. For bonds, indicate: • Quantity and denomination; • Name of obligor; • Date of maturity; • Interest rate; • Interest due date; • Principal exchange, if listed on an exchange; and • Nine-digit CUSIP number. If the stock or bond is unlisted, show the company's principal business office. If the gross estate includes any interest in a trust, partnership, or closely held entity, provide the EIN of the entity in the description column on Schedules B, E, F, G, M, and O. You must also provide the EIN of an estate (if any) in the description column on the above-noted schedules, where applicable. CUSIP number. The CUSIP (Committee on Uniform Security Identification Procedures) number is a nine-digit number that is assigned to all stocks and bonds traded on major exchanges and many unlisted securities. Usually, the CUSIP number is printed on the face of the stock certificate. If you do not have a stock certificate, the CUSIP may be found on the broker's or custodian's statement or by contacting the company's transfer agent. Valuation List the FMV of the stocks or bonds. The FMV of a stock or bond (whether listed or unlisted) is the mean between the highest and lowest selling prices quoted on the valuation date. If only the closing selling prices are available, then the FMV is the mean between the quoted closing selling price on Schedule B Examples Example showing use of Schedule B where the alternate valuation is not adopted; date of death, January 1, 2022. Item number Description, including face amount of bonds or number of shares and par value where needed for identification. Give CUSIP number. If trust, partnership, or closely held entity, give EIN. Unit value Alternate valuation date Alternate value Value at date of death CUSIP number or EIN, where applicable 1 $60,000—Arkansas Railroad Co. first mortgage 4%, 20-year bonds, due 2023. Interest payable quarterly on Feb. 1, May 1, Aug. 1, and Nov. 1; N.Y. Exchange . . . . . . . . . . . . . . . . . XXXXXXXXX 100 - - - - - - - $- - - - - - - $ 60,000 Interest coupons attached to bonds, item 1, due and payable on Nov. 1, 2021, but not cashed at date of death . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - - 600 Interest accrued on item 1, from Nov. 1, 2021, to Jan. 1, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - - 400 2 500 shares Public Service Corp., common; N.Y. Exchange . . XXXXXXXXX 110 - - - - - - - - - - - - - - 55,000 Dividend on item 2 of $2 per share declared Dec. 10, 2021, payable on Jan. 9, 2022, to holders of record on Dec. 30, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - - 1,000 Example showing use of Schedule B where the alternate valuation is adopted; date of death, January 1, 2022. Item number Description, including face amount of bonds or number of shares and par value where needed for identification. Give CUSIP number. If trust, partnership, or closely held entity, give EIN. Unit value Alternate valuation date Alternate value Value at date of death CUSIP number or EIN, where applicable 1 $60,000—Arkansas Railroad Co. first mortgage 4%, 20-year bonds, due 2023. Interest payable quarterly on Feb. 1, May 1, Aug. 1, and Nov. 1; N.Y. Exchange . . . . . . . . . . . . . . . . . XXXXXXXXX 100 - - - - - - $- - - - - - $ 60,000 $30,000 of item 1 distributed to legatees on Apr. 1, 2022 . . . . 99 4/1/22 29,700 - - - - - - $30,000 of item 1 sold by executor on May 1, 2022 . . . . . . . 98 5/1/22 29,400 - - - - - - Interest coupons attached to bonds, item 1, due and payable on Nov. 1, 2021, but not cashed at date of death. Cashed by executor on Feb. 2, 2022 . . . . . . . . . . . . . . . . . . . . . . . - - - - - - 2/2/22 600 600 Interest accrued on item 1, from Nov. 1, 2021, to Jan. 1, 2022. Cashed by executor on Feb. 2, 2022 . . . . . . . . . . . . . . . . - - - - - - 2/2/22 400 400 2 500 shares Public Service Corp., common; N.Y. Exchange . . XXXXXXXXX 110 - - - - - - - - - - - - 55,000 Not disposed of within 6 months following death . . . . . . . . . 90 7/1/22 45,000 - - - - - - Dividend on item 2 of $2 per share declared Dec. 10, 2021, paid on Jan. 9, 2022, to holders of record on Dec. 30, 2021 . . . . . - - - - - - 1/9/22 1,000 1,000 Instructions for Form 706 (Rev. 09-2022) -25-

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the valuation date and on the trading day before the valuation date. If there were no sales on the valuation date, figure the FMV as follows. 1. Find the mean between the highest and lowest selling prices on the nearest trading date before and the nearest trading date after the valuation date. Both trading dates must be reasonably close to the valuation date. 2. Prorate the difference between the mean prices to the valuation date. 3. Add or subtract (whichever applies) the prorated part of the difference to or from the mean price figured for the nearest trading date before the valuation date. If no actual sales were made reasonably close to the valuation date, make the same computation using the mean between the bona fide bid and asked prices instead of sales prices. If actual sales prices or bona fide bid and asked prices are available within a reasonable period of time before the valuation date but not after the valuation date, or vice versa, use the mean between the highest and lowest sales prices or bid and asked prices as the FMV. For example, assume that sales of stock nearest the valuation date (June 15) occurred 2 trading days before (June 13) and 3 trading days after (June 18). On those days, the mean sale prices per share were $10 and $15, respectively. Therefore, the price of $12 is considered the FMV of a share of stock on the valuation date. If, however, on June 13 and 18, the mean sale prices per share were $15 and $10, respectively, the FMV of a share of stock on the valuation date is $13. If only closing prices for bonds are available, see Regulations section 20.2031-2(b). Apply the rules in the section 2031 regulations to determine the value of inactive stock and stock in close corporations. Attach to Schedule B complete financial and other data used to determine value, including balance sheets (particularly the one nearest to the valuation date) and statements of the net earnings or operating results and dividends paid for each of the 5 years immediately before the valuation date. Securities reported as of no value, of nominal value, or obsolete should be listed last. Include the address of the company and the state and date of incorporation. Attach copies of correspondence or statements used to determine the “no value.” If the security was listed on more than one stock exchange, use either the records of the exchange where the security is principally traded or the composite listing of combined exchanges, if available, in a publication of general circulation. In valuing listed stocks and bonds, you should carefully check accurate records to obtain values for the applicable valuation date. If you get quotations from brokers, or evidence of the sale of securities from the officers of the issuing companies, attach to the schedule copies of the letters furnishing these quotations or evidence of sale. Schedule C—Mortgages, Notes, and Cash If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. Complete Schedule C and file it with your return if the total gross estate contains any: • Mortgages, • Notes, or • Cash. List on Schedule C: • Mortgages and notes payable to the decedent at the time of death, and • Cash the decedent had at the date of death. Note. Do not list mortgages and notes payable by the decedent on Schedule C. (If these are deductible, list them on Schedule K.) Schedule C reporting order. List the items on Schedule C in the following order. 1. Mortgages. 2. Promissory notes. 3. Contracts by decedent to sell land. 4. Cash in possession. 5. Cash in banks, savings and loan associations, and other types of financial organizations. Description Mortgages. For mortgages, list: • Face value, • Unpaid balance, • Date of mortgage, • Name of maker, • Property mortgaged, • Date of maturity, • Interest rate, and • Interest date. Mortgage description example. “Bond and mortgage of $50,000, unpaid balance: $17,000; dated: January 1, 1992; J. Doe to R. Roe; premises: 22 Clinton Street, Newark, NJ; due: January 1, 2022; interest payable at 10% a year—January 1 and July 1.” Promissory notes. For promissory notes, list in the same way as mortgages. Contracts by the decedent to sell land. For contracts by the decedent to sell land, list: • Name of purchaser, • Contract date, • Property description, • Sale price, • Initial payment, • Amounts of installment payment, • Unpaid balance of principal, and • Interest rate. CAUTION ! -26- Instructions for Form 706 (Rev. 09-2022)

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Cash in possession. For cash on hand, list such cash separately from bank deposits. Cash in financial organizations. For cash in banks, savings and loan associations, and other types of financial organizations, list: • Name and address of each financial organization; • Amount in each account; • Serial or account number; • Nature of account—checking, savings, time deposit, etc.; and • Unpaid interest accrued from date of last interest payment to the date of death. Note. If you obtain statements from the financial organizations, keep them for IRS inspection. Schedule D—Insurance on the Decedent's Life If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. If you are required to file Form 706 and there was any insurance on the decedent's life, whether or not included in the gross estate, you must complete Schedule D and file it with the return. Insurance you must include on Schedule D. Under section 2042, you must include in the gross estate: • Insurance on the decedent's life receivable by or for the benefit of the estate; and • Insurance on the decedent's life receivable by beneficiaries other than the estate, as described below. The term “insurance” refers to life insurance of every description, including death benefits paid by fraternal beneficiary societies operating under the lodge system, and death benefits paid under no-fault automobile insurance policies if the no-fault insurer was unconditionally bound to pay the benefit in the event of the insured's death. Insurance in favor of the estate. Include on Schedule D the full amount of the proceeds of insurance on the life of the decedent receivable by the executor or otherwise payable to or for the benefit of the estate. Insurance in favor of the estate includes insurance used to pay the estate tax, and any other taxes, debts, or charges that are enforceable against the estate. The manner in which the policy is drawn is immaterial as long as there is an obligation, legally binding on the beneficiary, to use the proceeds to pay taxes, debts, or charges. You must include the full amount even though the premiums or other consideration may have been paid by a person other than the decedent. Insurance receivable by beneficiaries other than the es- tate. Include on Schedule D the proceeds of all insurance on the life of the decedent not receivable by, or for the benefit of, the decedent's estate if the decedent possessed at death any of the following incidents of ownership, exercisable either alone or in conjunction with any person or entity. Incidents of ownership in a policy include the following. • The right of the insured or estate to its economic benefits. CAUTION ! • The power to change the beneficiary. • The power to surrender or cancel the policy. • The power to assign the policy or to revoke an assignment. • The power to pledge the policy for a loan. • The power to obtain from the insurer a loan against the surrender value of the policy. • A reversionary interest if the value of the reversionary interest was more than 5% of the value of the policy immediately before the decedent died. (An interest in an insurance policy is considered a reversionary interest if, for example, the proceeds become payable to the insured's estate or payable as the insured directs if the beneficiary dies before the insured.) Life insurance not includible in the gross estate under section 2042 may be includible under some other section of the Code. For example, a life insurance policy could be transferred by the decedent in such a way that it would be includible in the gross estate under section 2036, 2037, or 2038. See the instructions for Schedule G for a description of these sections. Completing the Schedule You must list every insurance policy on the life of the decedent, whether or not it is included in the gross estate. Under “Description,” list: • The name of the insurance company, and • The number of the policy. For every life insurance policy listed on the schedule, request a statement on Form 712 from the company that issued the policy. Attach the Form 712 to Schedule D. Note. If the insurance company that issued the policy will not provide Form 712, you should attach evidence that verifies the amount includible on Schedule D, including but not limited to an attachment, rider, assignment, copy of insurance proceeds check, and other relevant material. If the policy proceeds are paid in one sum, enter the net proceeds received (from Form 712, line 24) in the value (and alternate value) columns of Schedule D. If the policy proceeds are not paid in one sum, enter the value of the proceeds as of the date of the decedent's death (from Form 712, line 25). If part or all of the policy proceeds are not included in the gross estate, explain why they were not included. Schedule E—Jointly Owned Property If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. If you are required to file Form 706, complete Schedule E and file it with the return if the decedent owned any joint property at the time of death, whether or not the decedent's interest is includible in the gross estate. Enter on this schedule all property of whatever kind or character, whether real estate, personal property, or bank accounts, in which the decedent held at the time of death an interest either as a joint tenant with right to survivorship or as a tenant by the entirety. CAUTION ! Instructions for Form 706 (Rev. 09-2022) -27-

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Do not list on this schedule property that the decedent held as a tenant in common, but report the value of the interest on Schedule A if real estate, or on the appropriate schedule if personal property. Similarly, community property held by the decedent and spouse should be reported on the appropriate Schedules A through I. The decedent's interest in a partnership should not be entered on this schedule unless the partnership interest itself is jointly owned. Solely owned partnership interests should be reported on Schedule F. Part 1. Qualified joint interests held by decedent and spouse. Under section 2040(b)(2), a joint interest is a qualified joint interest if the decedent and the surviving spouse held the interest as: • Tenants by the entirety, or • Joint tenants with right of survivorship if the decedent and the decedent's spouse are the only joint tenants. Interests that meet either of the two requirements above should be entered in Part 1. Joint interests that do not meet either of the two requirements above should be entered in Part 2. Under “Description,” describe the property as required in the instructions for Schedules A, B, C, and F for the type of property involved. For example, jointly held stocks and bonds should be described using the rules given in the instructions for Schedule B. Under “Alternate value” and “Value at date of death,” enter the full value of the property. Note. You cannot claim the special treatment under section 2040(b) for property held jointly by a decedent and a surviving spouse who is not a U.S. citizen. Report these joint interests on Part 2 of Schedule E, not Part 1. Part 2. All other joint interests. All joint interests that were not entered in Part 1 must be entered in Part 2. For each item of property, enter the appropriate letter A, B, C, etc., from line 2a to indicate the name and address of the surviving co-tenant. Under “Description,” describe the property as required in the instructions for Schedules A, B, C, and F for the type of property involved. In the “Percentage includible” column, enter the percentage of the total value of the property included in the gross estate. Generally, you must include the full value of the jointly owned property in the gross estate. However, the full value should not be included if you can show that a part of the property originally belonged to the other tenant(s) and was never received or acquired by the other tenant(s) from the decedent for less than adequate and full consideration in money or money's worth. Full value of jointly owned property also does not have to be included in the gross estate if you can show that any part of the property was acquired with consideration originally belonging to the surviving joint tenant(s). In this case, you may exclude from the value of the property an amount proportionate to the consideration furnished by the other tenant(s). Relinquishing or promising to relinquish dower, curtesy, or statutory estate created instead of dower or curtesy, or other marital rights in the decedent's property or estate is not consideration in money or money's worth. See the Schedule A instructions for the value to show for real property that is subject to a mortgage. If the property was acquired by the decedent and another person or persons by gift, bequest, devise, or inheritance as joint tenants, and their interests are not otherwise specified by law, include only that part of the value of the property that is figured by dividing the full value of the property by the number of joint tenants. If you believe that less than the full value of the entire property is includible in the gross estate for tax purposes, you must establish the right to include the smaller value by attaching proof of the extent, origin, and nature of the decedent's interest and the interest(s) of the decedent's co-tenant(s). In the “Includible alternate value” and “Includible value at date of death” columns, enter only the values that you believe are includible in the gross estate. Schedule F—Other Miscellaneous Property If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. You must complete Schedule F and file it with the re- turn. On Schedule F, list all items that must be included in the gross estate that are not reported on any other schedule, including: • Debts due the decedent (other than notes and mortgages included on Schedule C); • Interests in business; • Any interest in an Archer medical savings account (MSA) or health savings account (HSA), unless such interest passes to the surviving spouse; • Insurance on the life of another (obtain and attach Form 712, for each policy) (see Note below); • Section 2044 property (see Decedent Who Was a Surviving Spouse, later); • Claims (including the value of the decedent's interest in a claim for refund of income taxes or the amount of the refund actually received); • Rights; • Digital assets are any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as, cryptocurrencies and stablecoins. If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal transfer tax purposes; • Royalties; • Leaseholds; • Judgments; • Reversionary or remainder interests; • Shares in trust funds (attach a copy of the trust instrument); • Household goods and personal effects, including wearing apparel; • Farm products and growing crops; • Livestock; • Farm machinery; and • Automobiles. Note (for single premium or paid-up policies). In certain situations (for example, where the surrender value of the CAUTION ! -28- Instructions for Form 706 (Rev. 09-2022)

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policy exceeds its replacement cost), the true economic value of the policy will be greater than the amount shown on Form 712, line 59. In these situations, report the full economic value of the policy on Schedule F. See Rev. Rul. 78-137, 1978-1 C.B. 280, for details. Interests. If the decedent owned any interest in a partnership or unincorporated business, attach a statement of assets and liabilities for the valuation date and for the 5 years before the valuation date. Also, attach statements of the net earnings for the same 5 years. Be sure to include the EIN of the entity. You must account for goodwill in the valuation. In general, furnish the same information and follow the methods used to value close corporations. See the instructions for Schedule B. All partnership interests should be reported on Schedule F unless the partnership interest is jointly owned. Jointly owned partnership interests should be reported on Schedule E. If real estate is owned by a sole proprietorship, it should be reported on Schedule F and not on Schedule A. Describe the real estate with the same detail required for Schedule A. Valuation discounts. If you answered “Yes” to Part 4—General Information, line 11b, for any interest in a partnership, an unincorporated business, an LLC, or stock in a closely held corporation, attach a statement that lists the item number from Schedule F and identifies the total effective discount taken (that is, XX.XX%) on such interest. Example of effective discount: a Pro-rata value of LLC (before any discounts) $100.00 b Minus: 10% discounts for lack of control (10.00) c Marketable minority interest value (as if freely traded minority interest value) $90.00 d Minus: 15% discount for lack of marketability (13.50) e Nonmarketable minority interest value $76.50 Calculation of effective discount: (a minus e) divided by a = effective discount ($100.00 - $76.50) ÷ $100.00 = 23.50% Note. The amount of discounts are based on the factors pertaining to a specific interest and those discounts shown in the example are for demonstration purposes only. If you answered “Yes” to Part 4—General Information, line 11b, for any transfer(s) described in (1) through (5) in the Schedule G instructions (and made by the decedent), attach a statement to Schedule G which lists the item number from that schedule and identifies the total effective discount taken (that is, XX.XX%) on such transfer(s). Line 1. If the decedent owned at the date of death works of art or items with collectible value (for example, jewelry, furs, silverware, books, statuary, vases, oriental rugs, coin or stamp collections), check the “Yes” box on line 1 and provide full details. If any item or collection of similar items is valued at more than $3,000, attach an appraisal by an expert under oath and the required statement regarding the appraiser's qualifications (see Regulations section 20.2031-6(b)). Decedent Who Was a Surviving Spouse If the decedent was a surviving spouse, the decedent may have received qualified terminable interest property (QTIP) from the predeceased spouse for which the marital deduction was elected either on the predeceased spouse's estate tax return or on a gift tax return, Form 709. The election is available for transfers made and decedents dying after December 31, 1981. List such property on Schedule F. If this election was made and the surviving spouse retained interest in the QTIP property at death, the full value of the QTIP property is includible in the estate, even though the qualifying income interest terminated at death. It is valued as of the date of the surviving spouse's death, or alternate valuation date, if applicable. Do not reduce the value by any annual exclusion that may have applied to the transfer creating the interest. The value of such property included in the surviving spouse's gross estate is treated as passing from the surviving spouse. It therefore qualifies for the charitable and marital deductions on the surviving spouse's estate tax return if it meets the other requirements for those deductions. For additional details, see Regulations section 20.2044-1. Schedule G—Transfers During Decedent's Life If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. Complete Schedule G and file it with the return if the decedent made any of the transfers described in (1) through (5) later, or if you answered “Yes” to question 12 or 13a of Part 4—General Information. Report the following types of transfers on this schedule. IF. . . AND . . . THEN . . . the decedent made a transfer from a trust at the time of the transfer, the transfer was from a portion of the trust that was owned by the grantor under section 676 (other than by reason of section 672(e)) by reason of a power in the grantor for purposes of sections 2035 and 2038, treat the transfer as made directly by the decedent. Any such transfer within the annual gift tax exclusion is not includible in the gross estate. 1. Certain gift taxes (section 2035(b)). Enter on item A of Schedule G the total value of the gift taxes that were paid by the decedent or the estate on gifts made by the decedent or the decedent's spouse within 3 years of death. The date of the gift, not the date of payment of the gift tax, determines whether a gift tax paid is included in the gross estate under this rule. Therefore, you should carefully examine the Forms 709 filed by the decedent and the decedent's spouse to determine what part of the total gift taxes reported on them was attributable to gifts made within 3 years of death. CAUTION ! Instructions for Form 706 (Rev. 09-2022) -29-

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For example, if the decedent died on July 10, 2022, you should examine gift tax returns for 2022, 2021, 2020, and 2019. However, the gift taxes on the 2019 return that are attributable to gifts made on or before July 10, 2019, are not included in the gross estate. Explain how you figured the includible gift taxes if the entire gift taxes shown on any Form 709 filed for gifts made within 3 years of death are not included in the gross estate. Also attach copies of any relevant gift tax returns filed by the decedent's spouse, with "Exhibit to Estate Tax Return" entered across the top of the first page of each, for gifts made within 3 years of death. 2. Other transfers within 3 years of death (section 2035(a)). These transfers include only the following. • Any transfer by the decedent with respect to a life insurance policy within 3 years of death. • Any transfer within 3 years of death of a retained section 2036 life estate, section 2037 reversionary interest, or section 2038 power to revoke, etc., if the property subject to the life estate, interest, or power would have been included in the gross estate had the decedent continued to possess the life estate, interest, or power until death. These transfers are reported on Schedule G, regardless of whether a gift tax return was required to be filed for them when they were made. However, the amount includible and the information required to be shown for the transfers are determined: • For insurance on the life of the decedent using the instructions for Schedule D (attach Form 712); • For insurance on the life of another using the instructions for Schedule F (attach Form 712); and • For sections 2036, 2037, and 2038 transfers, using paragraphs (3), (4), and (5) of these instructions. 3. Transfers with retained life estate (section 2036). These are transfers by the decedent in which the decedent retained an interest in the transferred property. The transfer can be in trust or otherwise, but excludes bona fide sales for adequate and full consideration. Interests or rights. Section 2036 applies to the following retained interests or rights. • The right to income from the transferred property. • The right to the possession or enjoyment of the property. • The right, either alone or with any person, to designate the persons who shall receive the income from, possess, or enjoy, the property. Retained annuity, unitrust, and other income interests in trusts. If a decedent transferred property into a trust and retained or reserved the right to use the property, or the right to an annuity, unitrust, or other interest in such trust for the property for the decedent's life, any period not ascertainable without reference to the decedent's death, or for a period that does not, in fact, end before the decedent's death, then the decedent's right to use the property or the retained annuity, unitrust, or other interest (whether payable from income and/or principal) is the retention of the possession or enjoyment of, or the right to the income from, the property for purposes of section 2036. See Regulations section 20.2036-1(c)(2). Retained voting rights. Transfers with a retained life estate also include transfers of stock in a controlled corporation made after June 22, 1976, if the decedent retained or acquired voting rights in the stock. If the decedent retained direct or indirect voting rights in a controlled corporation, the decedent is considered to have retained enjoyment of the transferred property. A corporation is a controlled corporation if the decedent owned (actually or constructively) or had the right (either alone or with any other person) to vote at least 20% of the total combined voting power of all classes of stock. See section 2036(b)(2). If these voting rights ceased or were relinquished within 3 years of the decedent's death, the corporate interests are included in the gross estate as if the decedent had actually retained the voting rights until death. The amount includible in the gross estate is the value of the transferred property at the time of the decedent's death. If the decedent kept or reserved an interest or right to only a part of the transferred property, the amount includible in the gross estate is a corresponding part of the entire value of the property. A retained life estate does not have to be legally enforceable. What matters is that a substantial economic benefit was retained. For example, if a parent transferred the home title to one’s child, but with the informal understanding that the parent was to continue living there until the parent’s death, the value of the home would be includible in the parent’s estate even if the agreement would not have been legally enforceable. 4. Transfers taking effect at death (section 2037). A transfer that takes effect at the decedent's death is one under which possession or enjoyment can be obtained only by surviving the decedent. A transfer is not treated as one that takes effect at the decedent's death unless the decedent retained a reversionary interest (defined later) in the property that immediately before the decedent's death had a value of more than 5% of the value of the transferred property. If the transfer was made before October 8, 1949, the reversionary interest must have arisen by the express terms of the instrument of transfer. A reversionary interest is, generally, any right under which the transferred property will or may be returned to the decedent or the decedent's estate. It also includes the possibility that the transferred property may become subject to a power of disposition by the decedent. It does not matter if the right arises by the express terms of the instrument of transfer or by operation of law. For this purpose, reversionary interest does not include the possibility that the income alone from the property may return to the decedent or become subject to the decedent's power of disposition. 5. Revocable transfers (section 2038). The gross estate includes the value of any transferred property which was subject to the decedent's power to alter, amend, revoke, or terminate the transfer at the time of the decedent's death. A decedent's power to change beneficiaries and to increase any beneficiary's enjoyment of the property are examples of this. It does not matter whether the power was reserved at the time of the transfer, whether it arose by operation of law, or whether it was later created or conferred. The rule applies regardless of the source from which the power was acquired, and regardless of whether the power was exercisable by the decedent alone or with -30- Instructions for Form 706 (Rev. 09-2022)

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any person (and regardless of whether that person had a substantial adverse interest in the transferred property). The capacity in which the decedent could use a power has no bearing. If the decedent gave property in trust and was the trustee with the power to revoke the trust, the property would be included in the decedent’s gross estate. For transfers or additions to an irrevocable trust after October 28, 1979, the transferred property is includible if the decedent reserved the power to remove the trustee at will and appoint another trustee. If the decedent relinquished within 3 years of death any of the includible powers described above, figure the gross estate as if the decedent had actually retained the powers until death. Only the part of the transferred property that is subject to the decedent's power is included in the gross estate. For more detailed information on which transfers are includible in the gross estate, see Regulations section 20.2038-1. Special Valuation Rules for Certain Lifetime Transfers Sections 2701 through 2704 provide rules for valuing certain transfers to family members. Section 2701 deals with the transfer of an interest in a corporation or partnership while retaining certain distribution rights, or a liquidation, put, call, or conversion right. Section 2702 deals with the transfer of an interest in a trust while retaining any interest other than a qualified interest. In general, a qualified interest is a right to receive certain distributions from the trust at least annually, or a noncontingent remainder interest if all of the other interests in the trust are distribution rights specified in section 2702. Section 2703 provides rules for the valuation of property transferred to a family member but subject to an option, agreement, or other right to acquire or use the property at less than FMV. It also applies to transfers subject to restrictions on the right to sell or use the property. Finally, section 2704 provides that in certain cases, the lapse of a voting or liquidation right in a family-owned corporation or partnership will result in a deemed transfer. These rules have potential consequences for the valuation of property in an estate. If the decedent (or any member of the decedent’s family) was involved in any such transactions, see sections 2701 through 2704 and the related regulations for additional details. How To Complete Schedule G All transfers (other than outright transfers not in trust and bona fide sales) made by the decedent at any time during life must be reported on Schedule G, regardless of whether you believe the transfers are subject to tax. If the decedent made any transfers not described in these instructions, the transfers should not be shown on Schedule G. Instead, attach a statement describing these transfers by listing: • The date of the transfer, • The amount or value of the transferred property, and • The type of transfer. Complete the schedule for each transfer that is included in the gross estate under sections 2035(a), 2036, 2037, and 2038, as described in the instructions for Schedule G. In the “Item number” column, number each transfer consecutively beginning with “1.” In the “Description” column, list the name of the transferee and the date of the transfer, and give a complete description of the property. Transfers included in the gross estate should be valued on the date of the decedent's death or, if alternate valuation is elected, according to section 2032. If only part of the property transferred meets the terms of section 2035(a), 2036, 2037, or 2038, then only a corresponding part of the value of the property should be included in the value of the gross estate. If the transferee makes additions or improvements to the property, the increased value of the property at the valuation date should not be included on Schedule G. However, if only a part of the value of the property is included, enter the value of the whole under the column headed “Description” and explain what part was included. Attachments. If a transfer, by trust or otherwise, was made by a written instrument, attach a copy of the instrument to Schedule G. If the copy of the instrument is of public record, it should be certified; if not of public record, the copy should be verified. Schedule H—Powers of Appointment If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. Complete Schedule H and file it with the return if you answered “Yes” to question 14 of Part 4—General Information. On Schedule H, include the following in the gross estate. • The value of property for which the decedent possessed a general power of appointment (defined later) on the date of the decedent’s death. • The value of property for which the decedent possessed a general power of appointment that the decedent exercised or released before death by disposing of it in such a way that if it were a transfer of property owned by the decedent, the property would be includible in the decedent's gross estate as a transfer with a retained life estate, a transfer taking effect at death, or a revocable transfer. With the above exceptions, property subject to a power of appointment is not includible in the gross estate if the decedent released the power completely and the decedent held no interest in or control over the property. If the failure to exercise a general power of appointment results in a lapse of the power, the lapse is treated as a release only to the extent that the value of the property that could have been appointed by the exercise of the lapsed power is more than the greater of $5,000 or 5% of the total value, at the time of the lapse, of the assets out of which, or the proceeds of which, the exercise of the lapsed power could have been satisfied. Powers of Appointment A power of appointment determines who will own or enjoy the property subject to the power and when they will own or enjoy it. The power must be created by someone other than CAUTION ! Instructions for Form 706 (Rev. 09-2022) -31-

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the decedent. It does not include a power created or held on property transferred by the decedent. A power of appointment includes all powers which are, in substance and effect, powers of appointment regardless of how they are identified and regardless of local property laws. For example, if a settlor transfers property in trust for the life of the settlor’s spouse, with a power in the spouse to appropriate or consume the principal of the trust, the spouse has a power of appointment. Some powers do not in themselves constitute a power of appointment. For example, a power to amend only administrative provisions of a trust that cannot substantially affect the beneficial enjoyment of the trust property or income is not a power of appointment. A power to manage, invest, or control assets, or to allocate receipts and disbursements, when exercised only in a fiduciary capacity, is not a power of appointment. General power of appointment. A general power of appointment is a power that is exercisable in favor of the decedent, the decedent's estate, the decedent's creditors, or the creditors of the decedent's estate, except the following. 1. A power to consume, invade, or appropriate property for the benefit of the decedent that is limited by an ascertainable standard relating to health, education, support, or maintenance of the decedent. 2. A power exercisable by the decedent only in conjunction with: a. The creator of the power; or b. A person who has a substantial interest in the property subject to the power, which is adverse to the exercise of the power in favor of the decedent. A part of a power is considered a general power of appointment if the power: 1. May only be exercised by the decedent in conjunction with another person, and 2. Is also exercisable in favor of the other person (in addition to being exercisable in favor of the decedent, the decedent's creditors, the decedent's estate, or the creditors of the decedent's estate). When there is a partial power, figure the amount included in the gross estate by dividing the value of the property by the number of persons (including the decedent) in favor of whom the power is exercisable. Date power was created. Generally, a power of appointment created by will is considered created on the date of the testator's death. A power of appointment created by an inter vivos instrument is considered created on the date the instrument takes effect. If the holder of a power exercises it by creating a second power, the second power is considered as created at the time of the exercise of the first. Attachments If the decedent ever possessed a power of appointment, attach a certified or verified copy of the instrument granting the power and a certified or verified copy of any instrument by which the power was exercised or released. You must file these copies even if you contend that the power was not a general power of appointment, and that the property is not otherwise includible in the gross estate. Schedule I—Annuities If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 10, for information on how to estimate and report the value of these assets. Complete Schedule l and file it with the return if you answered “Yes” to question 16 of Part 4—General Information. Enter on Schedule I every annuity that meets all of the conditions under General, later, and every annuity described in paragraphs (a) through (h) of Annuities Under Approved Plans, later, even if the annuities are wholly or partially excluded from the gross estate. For a discussion regarding the QTIP treatment of certain joint and survivor annuities, see the Schedule M, line 3, instructions. General These rules apply to all types of annuities, including pension plans, individual retirement arrangements (IRAs), purchased commercial annuities, and private annuities. In general, you must include in the gross estate all or part of the value of any annuity that meets the following requirements. • It is receivable by a beneficiary following the death of the decedent and by reason of surviving the decedent. • The annuity is under a contract or agreement entered into after March 3, 1931. • The annuity was payable to the decedent (or the decedent possessed the right to receive the annuity) either alone or in conjunction with another, for the decedent's life or for any period not ascertainable without reference to the decedent's death or for any period that did not in fact end before the decedent's death. • The contract or agreement is not a policy of insurance on the life of the decedent. Note. A private annuity is an annuity issued by a party not engaged in the business of writing annuity contracts, typically a junior generation family member or a family trust. An annuity contract that provides periodic payments to a person for life and ceases at the person's death is not includible in the gross estate. Social security benefits are not includible in the gross estate even if the surviving spouse receives benefits. An annuity or other payment that is not includible in the decedent's or the survivor's gross estate as an annuity may still be includible under some other applicable provision of the law. For example, see Powers of Appointment and the instructions for Schedule G—Transfers During Decedent's Life, earlier. See also Regulations section 20.2039-1(e). If the decedent retired before January 1, 1985, see Annuities Under Approved Plans, later, for rules that allow the exclusion of part or all of certain annuities. Part Includible If the decedent contributed only part of the purchase price of the contract or agreement, include in the gross estate only CAUTION ! -32- Instructions for Form 706 (Rev. 09-2022)

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that part of the value of the annuity receivable by the surviving beneficiary that the decedent's contribution to the purchase price of the annuity or agreement bears to the total purchase price. For example, if the value of the survivor's annuity was $20,000 and the decedent had contributed 75% of the purchase price of the contract, the amount includible is $15,000 (75% (0.75) × $20,000). Except as provided under Annuities Under Approved Plans, later, contributions made by the decedent's employer to the purchase price of the contract or agreement are considered made by the decedent if they were made by the employer because of the decedent's employment. For more information, see section 2039(b). Definitions Annuity. An annuity consists of one or more payments extending over any period of time. The payments may be equal or unequal, conditional or unconditional, periodic or sporadic. Examples. The following are examples of contracts (but not necessarily the only forms of contracts) for annuities that must be included in the gross estate. 1. A contract under which the decedent immediately before death was receiving or was entitled to receive, for the duration of life, an annuity with payments to continue after death to a designated beneficiary, if surviving the decedent. 2. A contract under which the decedent immediately before death was receiving or was entitled to receive, together with another person, an annuity payable to the decedent and the other person for their joint lives, with payments to continue to the survivor following the death of either. 3. A contract or agreement entered into by the decedent and employer under which the decedent immediately before death and following retirement was receiving, or was entitled to receive, an annuity payable to the decedent for life. After the decedent's death, if survived by a designated beneficiary, the annuity was payable to the beneficiary with payments either fixed by contract or subject to an option or election exercised or exercisable by the decedent. However, see Annuities Under Approved Plans, later. 4. A contract or agreement entered into by the decedent and the decedent's employer under which at the decedent's death, before retirement, or before the expiration of a stated period of time, an annuity was payable to a designated beneficiary, if surviving the decedent. However, see Annuities Under Approved Plans, later. 5. A contract or agreement under which the decedent immediately before death was receiving, or was entitled to receive, an annuity for a stated period of time, with the annuity to continue to a designated beneficiary, surviving the decedent, upon the decedent's death and before the expiration of that period of time. 6. An annuity contract or other arrangement providing for a series of substantially equal periodic payments to be made to a beneficiary for life or over a period of at least 36 months after the date of the decedent's death under an individual retirement account, annuity, or bond as described in section 2039(e) (before its repeal by P.L. 98-369). Payable to the decedent. An annuity or other payment was payable to the decedent if, at the time of death, the decedent was in fact receiving an annuity or other payment, with or without an enforceable right to have the payments continued. Right to receive an annuity. The decedent had the right to receive an annuity or other payment if, immediately before death, the decedent had an enforceable right to receive payments at some time in the future, whether or not at the time of death the decedent had a present right to receive payments. Annuities Under Approved Plans The following rules relate to whether part or all of an otherwise includible annuity may be excluded. These rules have been repealed and apply only if the decedent either: • On December 31, 1984, was both a participant in the plan and in pay status (for example, had received at least one benefit payment on or before December 31, 1984) and had irrevocably elected the form of the benefit before July 18, 1984; or • Had separated from service before January 1, 1985, and did not change the form of benefit before death. The amount excluded cannot exceed $100,000 unless either of the following conditions is met. • On December 31, 1982, the decedent was both a participant in the plan and in pay status (for example, had received at least one benefit payment on or before December 31, 1982) and the decedent irrevocably elected the form of the benefit before January 1, 1983. • The decedent separated from service before January 1, 1983, and did not change the form of benefit before death. Approved Plans Approved plans may be separated into two categories. • Pension, profit-sharing, stock bonus, and other similar plans. • IRAs and retirement bonds. Different exclusion rules apply to the two categories of plans. Pension, etc., plans. The following plans are approved plans for the exclusion rules. a. An employees' trust (or a contract purchased by an employees' trust) forming part of a pension, stock bonus, or profit-sharing plan that met all the requirements of section 401(a), either at the time of the decedent's separation from employment (whether by death or otherwise) or at the time of the termination of the plan (if earlier). b. A retirement annuity contract purchased by the employer (but not by an employees' trust) under a plan that, at the time of the decedent's separation from employment (by death or otherwise), or at the time of the termination of the plan (if earlier), was a plan described in section 403(a). c. A retirement annuity contract purchased for an employee by an employer that is an organization referred to in section 170(b)(1)(A)(ii) or (vi), or that is a religious organization (other than a trust), and that is exempt from tax under section 501(a). d. Chapter 73 of title 10 of the United States Code. Instructions for Form 706 (Rev. 09-2022) -33-

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e. A bond purchase plan described in section 405 (before its repeal by P.L. 98-369, effective for obligations issued after December 31, 1983). Exclusion rules for pension, etc., plans. If an annuity under an approved plan described in (a) through (e) above is receivable by a beneficiary other than the executor and the decedent made no contributions under the plan toward the cost, no part of the value of the annuity, subject to the $100,000 limitation (if applicable), is includible in the gross estate. If the decedent made a contribution under a plan described in (a) through (e) above toward the cost, include in the gross estate on this schedule that proportion of the value of the annuity which the amount of the decedent's contribution under the plan bears to the total amount of all contributions under the plan. The remaining value of the annuity is excludable from the gross estate subject to the $100,000 limitation (if applicable). For the rules to determine whether the decedent made contributions to the plan, see Regulations section 20.2039-1(c). IRAs and retirement bonds. The following plans are approved plans for the exclusion rules. f. An individual retirement account described in section 408(a). g. An individual retirement annuity described in section 408(b). h. A retirement bond described in section 409(a) (before its repeal by P.L. 98-369). Exclusion rules for IRAs and retirement bonds. These plans are approved plans only if they provide for a series of substantially equal periodic payments made to a beneficiary for life, or over a period of at least 36 months after the date of the decedent's death. Subject to the $100,000 limitation (if applicable), if an annuity under a “plan” described in (f) through (h) above is receivable by a beneficiary other than the executor, the entire value of the annuity is excludable from the gross estate even if the decedent made a contribution under the plan. However, if any payment to or for an account or annuity described in paragraph (f), (g), or (h) earlier was not allowable as an income tax deduction under section 219 (and was not a rollover contribution, as described in section 2039(e) before its repeal by P.L. 98-369), include in the gross estate on this schedule that proportion of the value of the annuity which the amount not allowable as a deduction under section 219 and not a rollover contribution bears to the total amount paid to or for such account or annuity. For more information, see Regulations section 20.2039-5. Rules applicable to all approved plans. The following rules apply to all approved plans described in paragraphs (a) through (h), earlier. If any part of an annuity under a “plan” described in (a) through (h), earlier, is receivable by the executor, it is generally includible in the gross estate to the extent that it is receivable by the executor in that capacity. In general, the annuity is receivable by the executor if it is to be paid to the executor or if there is an agreement (expressed or implied) that it will be applied by the beneficiary for the benefit of the estate (such as in discharge of the estate's liability for death taxes or debts of the decedent, etc.) or that its distribution will be governed to any extent by the terms of the decedent's will or the laws of descent and distribution. If data available to you does not indicate whether the plan satisfies the requirements of section 401(a), 403(a), 408(a), 408(b), or 409(a), you may obtain that information from the IRS office where the employer's principal place of business is located. Line A. Lump-Sum Distribution Election Note. The following rules have been repealed and apply only if the decedent: • On December 31, 1984, was both a participant in the plan and in pay status (for example, had received at least one benefit payment on or before December 31, 1984) and had irrevocably elected the form of the benefit before July 18, 1984; or • Had separated from service before January 1, 1985, and did not change the form of benefit before death. Generally, the entire amount of any lump-sum distribution is included in the decedent's gross estate. However, under this special rule, all or part of a lump-sum distribution from a qualified (approved) plan will be excluded if the lump-sum distribution is included in the recipient's income for income tax purposes. If the decedent was born before 1936, the recipient may be eligible to elect special “10-year averaging” rules (under repealed section 402(e)) and capital gain treatment (under repealed section 402(a)(2)) in figuring the income tax on the distribution. For more information, see Pub. 575, Pension and Annuity Income. If this option is available, the estate tax exclusion cannot be claimed unless the recipient elects to forego the “10-year averaging” and capital gain treatment in figuring the income tax on the distribution. The recipient elects to forego this treatment by treating the distribution as taxable on the recipient’s income tax return, as described in Regulations section 20.2039-4(d). The election is irrevocable. The amount excluded from the gross estate is the portion attributable to the employer contributions. The portion, if any, attributable to the employee-decedent's contributions is always includible. Also, you may not figure the gross estate in accordance with this election unless you check “Yes” on line A and attach the names, addresses, and identifying numbers of the recipients of the lump-sum distributions. See Regulations section 20.2039-4(d)(2). How To Complete Schedule I In describing an annuity, give the name and address of the grantor of the annuity. Specify if the annuity is under an approved plan. IF . . . THEN . . . the annuity is under an approved plan state the ratio of the decedent's contribution to the total purchase price of the annuity. the decedent was employed at the time of death and an annuity as described earlier in Definitions, Annuity, Example 4 became payable to any beneficiary because the beneficiary survived the decedent state the ratio of the decedent's contribution to the total purchase price of the annuity. -34- Instructions for Form 706 (Rev. 09-2022)

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IF . . . THEN . . . an annuity under an individual retirement account or annuity became payable to any beneficiary because that beneficiary survived the decedent and is payable to the beneficiary for life or for at least 36 months following the decedent's death state the ratio of the amount paid for the individual retirement account or annuity that was not allowable as an income tax deduction under section 219 (other than a rollover contribution) to the total amount paid for the account or annuity. the annuity is payable out of a trust or other fund the description should be sufficiently complete to fully identify it. the annuity is payable for a term of years include the duration of the term and the date on which it began. the annuity is payable for the life of a person other than the decedent include the date of birth of that person. the annuity is wholly or partially excluded from the gross estate enter the amount excluded under “Description” and explain how you figured the exclusion. Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims Use Schedule PC to make a protective claim for refund for expenses which are not currently deductible under section 2053. For such a claim, report the expense on Schedule J but without a value in the last column. General. Complete and file Schedule J if you claim a deduction on item 14 of Part 5—Recapitulation. On Schedule J, itemize funeral expenses and expenses incurred in administering property subject to claims. List the names and addresses of persons to whom the expenses are payable and describe the nature of the expense. Do not list expenses incurred in administering property not subject to claims on this schedule. List them on Schedule L instead. The deduction is limited to the amount paid for these expenses that is allowable under local law but may not exceed: 1. The value of property subject to claims included in the gross estate, plus 2. The amount paid out of property included in the gross estate but not subject to claims. This amount must actually be paid by the due date of the estate tax return. The applicable local law under which the estate is being administered determines which property is and is not subject to claims. If under local law a particular property interest included in the gross estate would bear the burden for the payment of the expenses, then the property is considered property subject to claims. Unlike certain claims against the estate for debts of the decedent (see the instructions for Schedule K), you cannot deduct expenses incurred in administering property subject CAUTION ! to claims on both the estate tax return and the estate's income tax return. If you choose to deduct them on the estate tax return, you cannot deduct them on a Form 1041, U.S. Income Tax Return for Estates and Trusts, filed for the estate. Funeral expenses are only deductible on the estate tax return. Funeral expenses. Itemize funeral expenses on line A. Deduct from the expenses any amounts that were reimbursed, such as death benefits payable by the SSA or the Veterans Administration. Executors' commissions. When you file the return, you may deduct commissions that have actually been paid to you or that you expect will be paid. Do not deduct commissions if none will be collected. If the amount of the commissions has not been fixed by decree of the proper court, the deduction will be allowed on the final examination of the return, provided that: • The Chief, Estate and Gift/Excise Tax Examination, is reasonably satisfied that the commissions claimed will be paid; • The amount entered as a deduction is within the amount allowable by the laws of the jurisdiction where the estate is being administered; and • It is in accordance with the usually accepted practice in that jurisdiction for estates of similar size and character. If you have not been paid the commissions claimed at the time of the final examination of the return, you must support the amount you deducted with an affidavit or statement signed under the penalties of perjury that the amount has been agreed upon and will be paid. You may not deduct a bequest or devise made to you instead of commissions. If, however, the decedent fixed by will the compensation payable to you for services to be rendered in the administration of the estate, you may deduct this amount to the extent it is not more than the compensation allowable by the local law or practice. Do not deduct on this schedule amounts paid as trustees' commissions whether received by you acting in the capacity of a trustee or by a separate trustee. If such amounts were paid in administering property not subject to claims, deduct them on Schedule L. Note. Executors' commissions are taxable income to the executors. Therefore, be sure to include them as income on your individual income tax return. Attorney fees. Enter the amount of attorney fees that have actually been paid or that you reasonably expect to be paid. If, on the final examination of the return, the fees claimed have not been awarded by the proper court and paid, the deduction will be allowed, provided the Chief, Estate and Gift/Excise Tax Examination, is reasonably satisfied that the amount claimed will be paid and that it does not exceed a reasonable payment for the services performed, taking into account the size and character of the estate and the local law and practice. If the fees claimed have not been paid at the time of final examination of the return, the amount deducted must be supported by an affidavit, or statement signed under penalties of perjury, by the executor or the attorney stating that the amount has been agreed upon and will be paid. Do not deduct attorney fees incidental to litigation incurred by the beneficiaries. These expenses are charged against the beneficiaries personally and are not administration expenses authorized by the Code. Instructions for Form 706 (Rev. 09-2022) -35-

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Interest expense. Interest expenses incurred after the decedent's death are generally allowed as a deduction if they are reasonable, necessary to the administration of the estate, and allowable under local law. Interest incurred as the result of a federal estate tax deficiency is a deductible administrative expense. Penalties on estate tax deficiencies are not deductible even if they are allowable under local law. Note. If you elect to pay the tax in installments under section 6166, you may not deduct the interest payable on the installments. Miscellaneous expenses. Miscellaneous administration expenses necessarily incurred in preserving and distributing the estate are deductible. These expenses include appraiser's and accountant's fees, certain court costs, and costs of storing or maintaining assets of the estate. The expenses of selling assets are deductible only if the sale is necessary to pay the decedent's debts, the expenses of administration, or taxes, or to preserve the estate or carry out distribution. Schedule K—Debts of the Decedent, and Mortgages and Liens Use Schedule PC to make a protective claim for refund for expenses which are not currently deductible under section 2053. For such a claim, report the expense on Schedule K but without a value in the last column. You must complete and attach Schedule K if you claimed deductions on either item 15 or item 16 of Part 5—Recapitulation. Income vs. estate tax deduction. Taxes, interest, and business expenses accrued at the date of the decedent's death are deductible both on Schedule K and as deductions in respect of the decedent on the income tax return of the estate. If you choose to deduct medical expenses of the decedent only on the estate tax return, they are fully deductible as claims against the estate. If, however, they are claimed on the decedent's final income tax return under section 213(c), they may also not be claimed on the estate tax return. In this case, you may also not deduct on the estate tax return any amounts that were not deductible on the income tax return because of the percentage limitations. Debts of the Decedent List under Debts of the Decedent only valid debts the decedent owed at the time of death. List any indebtedness secured by a mortgage or other lien on property of the gross estate under Mortgages and Liens. If the amount of the debt is disputed or the subject of litigation, deduct only the amount the estate concedes to be a valid claim. Generally, if the claim against the estate is based on a promise or agreement, the deduction is limited to the extent that the liability was contracted bona fide and for an adequate and full consideration in money or money's worth. However, any enforceable claim based on a promise or agreement of the decedent to make a contribution or gift (such as a pledge or a subscription) to or for the use of a charitable, public, religious, etc., organization is deductible to CAUTION ! the extent that the deduction would be allowed as a bequest under the statute that applies. Certain claims of a former spouse against the estate based on the relinquishment of marital rights are deductible on Schedule K. For these claims to be deductible, all of the following conditions must be met. • The decedent and the decedent's spouse must have entered into a written agreement relative to their marital and property rights. • The decedent and the spouse must have been divorced before the decedent's death and the divorce must have occurred within the 3-year period beginning on the date 1 year before the agreement was entered into. It is not required that the agreement be approved by the divorce decree. • The property or interest transferred under the agreement must be transferred to the decedent's spouse in settlement of the spouse's marital rights. You may not deduct a claim made against the estate by a remainderman relating to section 2044 property. Section 2044 property is described in the instructions for Part 4—General Information, line 7. Include in this schedule notes unsecured by mortgage or other lien and give full details, including: • Name of payee, • Face and unpaid balance, • Date and term of note, • Interest rate, and • Date to which interest was paid before death. Include the exact nature of the claim as well as the name of the creditor. If the claim is for services performed over a period of time, state the period covered by the claim. Example. Electric Illuminating Co., for electric service during December 2021, $150. If the amount of the claim is the unpaid balance due on a contract for the purchase of any property included in the gross estate, indicate the schedule and item number where you reported the property. If the claim represents a joint and separate liability, give full facts and explain the financial responsibility of the co-obligor. Property and income taxes. The deduction for property taxes is limited to the taxes accrued before the date of the decedent's death. Federal taxes on income received during the decedent's lifetime are deductible, but taxes on income received after death are not deductible. Keep all vouchers or original records for inspection by the IRS. Allowable death taxes. If you elect to take a deduction for foreign death taxes under section 2053(d) rather than a credit under section 2014, the deduction is subject to the limitations described in section 2053(d) and its regulations. Mortgages and Liens Under Mortgages and Liens, list only obligations secured by mortgages or other liens on property included in the gross estate at its full value or at a value that was undiminished by the amount of the mortgage or lien. If the debt is enforceable against other property of the estate not subject to the mortgage or lien, or if the decedent was personally liable for the debt, include the full value of the property subject to the mortgage or lien in the gross estate under the appropriate schedule and deduct the mortgage or lien on the property on this schedule. -36- Instructions for Form 706 (Rev. 09-2022)

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However, if the decedent's estate is not liable, include in the gross estate only the value of the equity of redemption (or the value of the property less the amount of the debt), and do not deduct any portion of the indebtedness on this schedule. Notes and other obligations secured by the deposit of collateral, such as stocks, bonds, etc., should also be listed under Mortgages and Liens. Description Include under the “Description” column the particular schedule and item number where the property subject to the mortgage or lien is reported in the gross estate. Include the name and address of the mortgagee, payee, or obligee, and the date and term of the mortgage, note, or other agreement by which the debt was established. Also include the face amount, the unpaid balance, the rate of interest, and the date to which the interest was paid before the decedent's death. Schedule L—Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims Use Schedule PC to make a protective claim for refund for expenses which are not currently deductible under section 2053. For such a claim, report the expense on Schedule L but without a value in the last column. Complete Schedule L and file it with the return if you claim deductions on either item 19 or item 20 of Part 5—Recapitulation. Net Losses During Administration You may deduct only those losses from thefts, fires, storms, shipwrecks, or other casualties that occurred during the settlement of the estate. Deduct only the amount not reimbursed by insurance or otherwise. Describe in detail the loss sustained and the cause. If you received insurance or other compensation for the loss, state the amount collected. Identify the property for which you are claiming the loss by indicating the schedule and item number where the property is included in the gross estate. If you elect alternate valuation, do not deduct the amount by which you reduced the value of an item to include it in the gross estate. Do not deduct losses claimed as a deduction on a federal income tax return or depreciation in the value of securities or other property. Expenses Incurred in Administering Property Not Subject to Claims You may deduct expenses incurred in administering property that is included in the gross estate but that is not subject to claims. Only deduct these expenses if they were paid before the section 6501 period of limitations for assessment expired. The expenses deductible on this schedule are usually expenses incurred in the administration of a trust established by the decedent before death. They may also be incurred in the collection of other assets or the transfer or clearance of CAUTION ! title to other property included in the decedent's gross estate for estate tax purposes, but not included in the decedent's probate estate. The expenses deductible on this schedule are limited to those that are the result of settling the decedent's interest in the property or of vesting good title to the property in the beneficiaries. Expenses incurred on behalf of the transferees (except those described earlier) are not deductible. Examples of deductible and nondeductible expenses are provided in Regulations section 20.2053-8(d). List the names and addresses of the persons to whom each expense was payable and the nature of the expense. Identify the property for which the expense was incurred by indicating the schedule and item number where the property is included in the gross estate. If you do not know the exact amount of the expense, you may deduct an estimate, provided that the amount may be verified with reasonable certainty and will be paid before the period of limitations for assessment (referred to earlier) expires. Keep all vouchers and receipts for inspection by the IRS. Schedule M—Bequests, etc., to Surviving Spouse (Marital Deduction) If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 23, for information on how to estimate and report the value of these assets. General You must complete Schedule M and file it with the return if you claim a deduction on item 21 of Part 5—Recapitulation. The marital deduction is authorized by section 2056 for certain property interests that pass from the decedent to the surviving spouse. You may claim the deduction only for property interests that are included in the decedent's gross estate (Schedules A through I). Note. The marital deduction is generally not allowed if the surviving spouse is not a U.S. citizen. The marital deduction is allowed for property passing to such a surviving spouse in a QDOT or if such property is transferred or irrevocably assigned to such a trust before the estate tax return is filed. The executor must elect QDOT status on the return. See the instructions that follow for details on the election. Property Interests That You May List on Schedule M Generally, you may list on Schedule M all property interests that pass from the decedent to the surviving spouse and are included in the gross estate. However, do not list any nondeductible terminable interests (described later) on Schedule M unless you are making a QTIP election. The property for which you make this election must be included on Schedule M. See Qualified terminable interest property, later. For the rules on common disaster and survival for a limited period, see section 2056(b)(3). You may list on Schedule M only those interests that the surviving spouse takes: CAUTION ! 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1. As the decedent's legatee, devisee, heir, or donee; 2. As the decedent's surviving tenant by the entirety or joint tenant; 3. As an appointee under the decedent's exercise of a power or as a taker in default at the decedent's nonexercise of a power; 4. As a beneficiary of insurance on the decedent's life; 5. As the surviving spouse taking under dower or curtesy (or similar statutory interest); and 6. As a transferee of a transfer made by the decedent at any time. Property Interests That You May Not List on Schedule M Do not list the following on Schedule M. 1. The value of any property that does not pass from the decedent to the surviving spouse. 2. Property interests that are not included in the decedent's gross estate. 3. The full value of a property interest for which a deduction was claimed on Schedules J through L. The value of the property interest should be reduced by the deductions claimed with respect to it. 4. The full value of a property interest that passes to the surviving spouse subject to a mortgage or other encumbrance or an obligation of the surviving spouse. Include on Schedule M only the net value of the interest after reducing it by the amount of the mortgage or other debt. 5. Nondeductible terminable interests (described later). 6. Any property interest disclaimed by the surviving spouse. Terminable Interests Certain interests in property passing from a decedent to a surviving spouse are referred to as terminable interests. These are interests that will terminate or fail after the passage of time, or on the occurrence or nonoccurrence of a designated event. Examples are life estates, annuities, estates for terms of years, and patents. The ownership of a bond, note, or other contractual obligation, which when discharged would not have the effect of an annuity for life or for a term, is not considered a terminable interest. Nondeductible terminable interests. Unless you are making a QTIP election, do not enter a terminable interest on Schedule M if: 1. Another interest in the same property passed from the decedent to some other person for less than adequate and full consideration in money or money's worth; and 2. By reason of its passing, the other person or that person's heirs may enjoy part of the property after the termination of the surviving spouse's interest. This rule applies even though the interest that passes from the decedent to a person other than the surviving spouse is not included in the gross estate, and regardless of when the interest passes. The rule also applies regardless of whether the surviving spouse's interest and the other person's interest pass from the decedent at the same time. Property interests that are considered to pass to a person other than the surviving spouse are any property interest that (a) passes under a decedent's will or intestacy; (b) was transferred by a decedent during life; or (c) is held by or passed on to any person as a decedent's joint tenant, as appointee under a decedent's exercise of a power, as taker in default at a decedent's release or nonexercise of a power, or as a beneficiary of insurance on the decedent's life. See Regulations section 20.2056(c)-3. For example, a spouse was devised real property for life, from the decedent, with remainder to the children. The life interest that passed to the spouse does not qualify for the marital deduction because it will terminate at the spouse’s death and the children will thereafter possess or enjoy the property. However, if the decedent purchased a joint and survivor annuity for themselves and the spouse who survived them, the value of the survivor's annuity, to the extent that it is included in the gross estate, qualifies for the marital deduction because even though the interest will terminate on the spouse’s death, no one else will possess or enjoy any part of the property. The marital deduction is not allowed for an interest that the decedent directed the executor or a trustee to convert, after death, into a terminable interest for the surviving spouse. The marital deduction is not allowed for such an interest even if there was no interest in the property passing to another person and even if the terminable interest would otherwise have been deductible under the exceptions described later for life estates, life insurance, and annuity payments with powers of appointment. For more information, see Regulations section 20.2056(b)-1(f); and Regulations section 20.2056(b)-1(g), Example (7). If any property interest passing from the decedent to the surviving spouse may be paid or otherwise satisfied out of any of a group of assets, the value of the property interest is, for the entry on Schedule M, reduced by the value of any asset or assets that, if passing from the decedent to the surviving spouse, would be nondeductible terminable interests. Examples of property interests that may be paid or Example—Listing Property Interests on Schedule M Item number Description of property interests passing to surviving spouse. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN. Amount All other property: B1 One-half the value of a house and lot, 256 South West Street, held by decedent and surviving spouse as joint tenants with right of survivorship under deed dated July 15, 1975 (Schedule E, Part 1, item 1) . . . . . . . . . . . . . . . . . . $182,500 B2 Proceeds of Metropolitan Life Insurance Company Policy No. 104729, payable in one sum to surviving spouse (Schedule D, item 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 B3 Cash bequest under Paragraph Six of will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 -38- Instructions for Form 706 (Rev. 09-2022)

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otherwise satisfied out of any of a group of assets are a bequest of the residue of the decedent's estate, or of a share of the residue, and a cash legacy payable out of the general estate. Example. A decedent bequeathed $100,000 to the surviving spouse. The general estate includes a term for years (valued at $10,000 in determining the value of the gross estate) in an office building, which interest was retained by the decedent under a deed of the building by gift to the decedent’s child. Accordingly, the value of the specific bequest entered on Schedule M is $90,000. Life estate with power of appointment in the surviving spouse. A property interest, whether or not in trust, will be treated as passing to the surviving spouse, and will not be treated as a nondeductible terminable interest if the following five conditions apply. 1. The surviving spouse is entitled for life to all of the income from the entire interest. 2. The income is payable annually or at more frequent intervals. 3. The surviving spouse has the power, exercisable in favor of the surviving spouse or the estate of the surviving spouse, to appoint the entire interest. 4. The power is exercisable by the surviving spouse alone and (whether exercisable by will or during life) is exercisable by the surviving spouse in all events. 5. No part of the entire interest is subject to a power in any other person to appoint any part to any person other than the surviving spouse (or the surviving spouse's legal representative or relative if the surviving spouse is disabled; see Regulations section 20.2056(b)-5(a) and Rev. Rul. 85-35, 1985-1 C.B. 328). If these five conditions are satisfied only for a specific portion of the entire interest, see Regulations sections 20.2056(b)-5(b) and -5(c) to determine the amount of the marital deduction. Life insurance, endowment, or annuity payments, with power of appointment in surviving spouse. A property interest consisting of the entire proceeds under a life insurance, endowment, or annuity contract is treated as passing from the decedent to the surviving spouse, and will not be treated as a nondeductible terminable interest if the following five conditions apply. 1. The surviving spouse is entitled to receive the proceeds in installments, or is entitled to interest on them, with all amounts payable during the life of the spouse, payable only to the surviving spouse. 2. The installment or interest payments are payable annually, or more frequently, beginning not later than 13 months after the decedent's death. 3. The surviving spouse has the power, exercisable in favor of the surviving spouse or of the estate of the surviving spouse, to appoint all amounts payable under the contract. 4. The power of appointment is exercisable by the surviving spouse alone and (whether exercisable by will or during life) is exercisable by the surviving spouse in all events. 5. No part of the amount payable under the contract is subject to a power in any other person to appoint any part to any person other than the surviving spouse. If these five conditions are satisfied only for a specific portion of the proceeds, see Regulations section 20.2056(b)-6(b) to determine the amount of the marital deduction. Charitable remainder trusts. An interest in a charitable remainder trust will not be treated as a nondeductible terminable interest if: 1. The interest in the trust passes from the decedent to the surviving spouse, and 2. The surviving spouse is the only beneficiary of the trust other than charitable organizations described in section 170(c). A charitable remainder trust is either a charitable remainder annuity trust or a charitable remainder unitrust. See section 664 for descriptions of these trusts. Election To Deduct Qualified Terminable Interest Property (QTIP) You may elect to claim a marital deduction for qualified terminable interest property or property interests. You make the QTIP election simply by listing the qualified terminable interest property on Part A of Schedule M and inserting its value. You are presumed to have made the QTIP election if you list the property and insert its value on Schedule M. If you make this election, the surviving spouse's gross estate will include the value of the qualified terminable interest property. See the instructions for Part 4—General Information, line 7, for more details. The election is irrevocable. If you file a Form 706 in which you do not make this election, you may not file an amended return to make the election unless you file the amended return on or before the due date for filing the original Form 706. The effect of the election is that the property (interest) will be treated as passing to the surviving spouse and will not be treated as a nondeductible terminable interest. All of the other marital deduction requirements must still be satisfied before you may make this election. For example, you may not make this election for property or property interests that are not included in the decedent's gross estate. Qualified terminable interest property. Qualified terminable interest property is property (a) that passes from the decedent, (b) in which the surviving spouse has a qualifying income interest for life, and (c) for which election under section 2056(b)(7) has been made. The surviving spouse has a qualifying income interest for life if the surviving spouse is entitled to all of the income from the property payable annually or at more frequent intervals, or has a usufruct interest for life in the property, and during the surviving spouse's lifetime no person has a power to appoint any part of the property to any person other than the surviving spouse. An annuity is treated as an income interest regardless of whether the property from which the annuity is payable can be separately identified. Regulations sections 20.2044-1 and 20.2056(b)-7(d)(3) state that an interest in property is eligible for QTIP treatment if the income interest is contingent upon the executor's election even if that portion of the property for which no election is made will pass to or for the benefit of beneficiaries other than the surviving spouse. The QTIP election may be made for all or any part of qualified terminable interest property. A partial election must relate to a fractional or percentile share of the property so Instructions for Form 706 (Rev. 09-2022) -39-

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that the elective part will reflect its proportionate share of the increase or decline in the whole of the property when applying section 2044 or 2519. Thus, if the interest of the surviving spouse in a trust (or other property in which the spouse has a qualified life estate) is qualified terminable interest property, you may make an election for a part of the trust (or other property) only if the election relates to a defined fraction or percentage of the entire trust (or other property). The fraction or percentage may be defined by means of a formula. Election to deduct qualified termin- able interest property under section 2056(b)(7). If a trust (or other property) meets the requirements of qualified terminable interest property under section 2056(b)(7), and 1. The trust or other property is listed on Schedule M, and 2. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule M, then unless the executor specifically identifies the trust (all or a fractional portion or percentage) or other property to be excluded from the election, the executor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2056(b)(7). If less than the entire value of the trust (or other property) that the executor has included in the gross estate is entered as a deduction on Schedule M, the executor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule M. The denominator is equal to the total value of the trust (or other property). Qualified Domestic Trust (QDOT) Election The marital deduction is allowed for transfers to a surviving spouse who is not a U.S. citizen only if the property passes to the surviving spouse in a QDOT or if such property is transferred or irrevocably assigned to a QDOT before the decedent's estate tax return is filed. A QDOT is any trust: 1. That requires at least one trustee to be either a citizen of the United States or a domestic corporation, 2. That requires that no distribution of corpus from the trust can be made unless such a trustee has the right to withhold from the distribution the tax imposed on the QDOT, 3. That meets the requirements of any applicable regulations, and 4. For which the executor has made an election on the estate tax return of the decedent. Note. For trusts created by an instrument executed before November 5, 1990, items 1 and 2 above will be treated as met if the trust instrument requires that all trustees be individuals who are citizens of the United States or domestic corporations. You make the QDOT election simply by listing the qualified domestic trust or the entire value of the trust property on Schedule M and deducting its value. You are presumed to have made the QDOT election if you list the trust or trust property and insert its value on Schedule M. Once made, the election is irrevocable. If an election is made to deduct qualified domestic trust property under section 2056A(d), provide the following information for each qualified domestic trust on an attachment to this schedule. 1. The name and address of every trustee. 2. A description of each transfer passing from the decedent that is the source of the property to be placed in trust. 3. The EIN for the trust. The election must be made for an entire QDOT trust. In listing a trust for which you are making a QDOT election, unless you specifically identify the trust as not subject to the election, the election will be considered made for the entire trust. The determination of whether a trust qualifies as a QDOT will be made as of the date the decedent's Form 706 is filed. If, however, judicial proceedings are brought before the Form 706's due date (including extensions) to have the trust revised to meet the QDOT requirements, then the determination will not be made until the court-ordered changes to the trust are made. Election to deduct qualified domestic trust property un- der section 2056A. If a trust meets the requirement of a QDOT under section 2056A(a), the return is filed no later than 1 year after the time prescribed by law (including extensions), and the entire value of the trust or trust property is listed and entered as a deduction on Schedule M, then unless the executor specifically identifies the trust to be excluded from the election, the executor shall be deemed to have made an election to have the entire trust treated as qualified domestic trust property. Note. For trusts with assets in excess of $2 million, see Regulations section 20.2056A-2(d) for additional requirements to ensure collection of the section 2056A estate tax. Line 1 If property passes to the surviving spouse as the result of a qualified disclaimer, check “Yes” and attach a copy of the written disclaimer required by section 2518(b). Line 3 Section 2056(b)(7)(C)(ii) creates an automatic QTIP election for certain joint and survivor annuities that are includible in the estate under section 2039. To qualify, only the surviving spouse can have the right to receive payments before the death of the surviving spouse. The executor can elect out of QTIP treatment, however, by checking the “Yes” box on line 3. Once made, the election is irrevocable. If there is more than one such joint and survivor annuity, you are not required to make the election for all of them. If you make the election out of QTIP treatment by checking “Yes” on line 3, you cannot deduct the amount of the annuity on Schedule M. If you do not elect out, you must list the joint and survivor annuities on Schedule M. Listing Property Interests on Schedule M List each property interest included in the gross estate that passes from the decedent to the surviving spouse and for which a marital deduction is claimed. This includes otherwise nondeductible terminable interest property for which you are making a QTIP election. Number each item in sequence and -40- Instructions for Form 706 (Rev. 09-2022)

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describe each item in detail. Describe the instrument (including any clause or paragraph number) or provision of law under which each item passed to the surviving spouse. Indicate the schedule and item number of each asset. In listing otherwise nondeductible property for which you are making a QTIP election, unless you specifically identify a fractional portion of the trust or other property as not subject to the election, the election will be considered made for the entire interest. Enter the value of each interest before taking into account the federal estate tax or any other death tax. The valuation dates used in determining the value of the gross estate also apply on Schedule M. If Schedule M includes a bequest of the residue or a part of the residue of the decedent's estate, attach a copy of the computation showing how the value of the residue was determined. Include a statement showing the following. • The value of all property that is included in the decedent's gross estate (Schedules A through I) but is not a part of the decedent's probate estate, such as lifetime transfers, jointly owned property that passed to the survivor on the decedent's death, and the insurance payable to specific beneficiaries. • The values of all specific and general legacies or devises, with reference to the applicable clause or paragraph of the decedent's will or codicil. (If legacies are made to each member of a class, for example, $1,000 to each of the decedent's employees, only the number in each class and the total value of property received by them need be furnished.) • The dates of birth of all persons, the length of whose lives may affect the value of the residuary interest passing to the surviving spouse. • Any other important information such as that relating to any claim to any part of the estate not arising under the will. Lines 5a, 5b, and 5c. The total of the values listed on Schedule M must be reduced by the amount of the federal estate tax, the federal GST tax, and the amount of state or other death and GST taxes paid out of the property interest involved. If you enter an amount for state or other death or GST taxes on line 5b or 5c, identify the taxes and attach your computation of them. Attachments. If you list property interests passing by the decedent's will on Schedule M, attach a certified copy of the order admitting the will to probate. If, when you file the return, the court of probate jurisdiction has entered any decree interpreting the will or any of its provisions affecting any of the interests listed on Schedule M, or has entered any order of distribution, attach a copy of the decree or order. In addition, the IRS may request other evidence to support the marital deduction claimed. Schedule O—Charitable, Public, and Similar Gifts and Bequests If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part 5—Recapitulation, line 23, for information on how to estimate and report the value of these assets. CAUTION ! General You must complete Schedule O and file it with the return if you claim a deduction on item 22 of Part 5—Recapitulation. You can claim the charitable deduction allowed under section 2055 for the value of property in the decedent's gross estate that was transferred by the decedent during life or by will to or for the use of any of the following. • The United States, a state, a political subdivision of a state, or the District of Columbia, for exclusively public purposes. • Any corporation or association organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, including the encouragement of art, or to foster national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment, unless the organization is a qualified amateur sports organization) and the prevention of cruelty to children and animals. No part of the net earnings may benefit any private individual and no substantial activity may be undertaken to carry on propaganda, or otherwise attempt to influence legislation or participate in any political campaign on behalf of any candidate for public office. • A trustee or a fraternal society, order, or association operating under the lodge system, if the transferred property is to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. No substantial activity may be undertaken to carry on propaganda or otherwise attempt to influence legislation, or participate in any political campaign on behalf of any candidate for public office. • Any veterans organization incorporated by an Act of Congress or any of its departments, local chapters, or posts, for which none of the net earnings benefits any private individual. • Employee stock ownership plans, if the transfer qualifies as a qualified gratuitous transfer of qualified employer securities within the meaning provided in section 664(g). For this purpose, certain Indian tribal governments are treated as states and transfers to them qualify as deductible charitable contributions. See section 7871 and Rev. Proc. 2008-55, 2008-39 I.R.B. 768, available at Rev. Proc. 2008-55, as modified and supplemented by subsequent revenue procedures, for a list of qualifying Indian tribal governments. You may also claim a charitable contribution deduction for a qualifying conservation easement granted after the decedent's death under the provisions of section 2031(c)(9). The charitable deduction is allowed for amounts that are transferred to charitable organizations as a result of either a qualified disclaimer (see Line 2. Qualified Disclaimer, later) or the complete termination of a power to consume, invade, or appropriate property for the benefit of an individual. It does not matter whether termination occurs because of the death of the individual or in any other way. The termination must occur within the period of time (including extensions) for filing the decedent's estate tax return and before the power has been exercised. The deduction is limited to the amount actually available for charitable uses. Therefore, if under the terms of a will or the provisions of local law, or for any other reason, the federal estate tax, the federal GST tax, or any other estate, GST, succession, legacy, or inheritance tax is payable in Instructions for Form 706 (Rev. 09-2022) -41-

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whole or in part out of any bequest, legacy, or devise that would otherwise be allowed as a charitable deduction, the amount you may deduct is the amount of the bequest, legacy, or devise reduced by the total amount of the taxes. If you elected to make installment payments of the estate tax, and the interest is payable out of property transferred to charity, you must reduce the charitable deduction by an estimate of the maximum amount of interest that will be paid on the deferred tax. For split-interest trusts or pooled income funds, only the figure that is passing to the charity should be entered in the “Amount” column. Do not enter the entire amount that passes to the trust or fund. If you are deducting the value of the residue or a part of the residue passing to charity under the decedent's will, attach a copy of the computation showing how you determined the value, including any reduction for the taxes described earlier. Also include the following. • A statement that shows the values of all specific and general legacies or devises for both charitable and noncharitable uses. For each legacy or devise, indicate the paragraph or section of the decedent's will or codicil that applies. If legacies are made to each member of a class (for example, $1,000 to each of the decedent's employees), show only the number of each class and the total value of property they received. • The dates of birth of all life tenants or annuitants, the length of whose lives may affect the value of the interest passing to charity under the decedent's will. • A statement showing the value of all property that is included in the decedent's gross estate but does not pass under the will, such as transfers, jointly owned property that passed to the survivor on the decedent's death, and insurance payable to specific beneficiaries. • Any agreements with charitable beneficiaries, whether entered before or after the date of death of the decedent. • Verification of the sale or purchase of property that is the subject of a charitable deduction. • Any other important information such as that relating to any claim, not arising under the will, to any part of the estate (that is, a spouse claiming dower or curtesy, or similar rights). Line 2. Qualified Disclaimer The charitable deduction is allowed for amounts that are transferred to charitable organizations as a result of a qualified disclaimer. To be a qualified disclaimer, a refusal to accept an interest in property must meet the conditions of section 2518. These are explained in Regulations sections 25.2518-1 through 25.2518-3. If property passes to a charitable beneficiary as the result of a qualified disclaimer, check the “Yes” box on line 2 and attach a copy of the written disclaimer required by section 2518(b). Attachments If the charitable transfer was made by will, attach a certified copy of the order admitting the will to probate, in addition to the copy of the will. If the charitable transfer was made by any other written instrument, attach a copy. If the instrument is of record, the copy should be certified; if not, the copy should be verified. Value The valuation dates used in determining the value of the gross estate also apply on Schedule O. Schedule P—Credit for Foreign Death Taxes General If you claim a credit on Part 2—Tax Computation, line 13, complete Schedule P and file it with the return. Attach Form(s) 706-CE to Form 706 to support any credit you claim. If the foreign government refuses to certify Form 706-CE, file it directly with the IRS as instructed on the Form 706-CE. See Form 706-CE for instructions on how to complete the form and a description of the items that must be attached to the form when the foreign government refuses to certify it. The credit for foreign death taxes is allowable only if the decedent was a citizen or resident of the United States. However, see section 2053(d) and the related regulations for exceptions and limitations if the executor has elected, in certain cases, to deduct these taxes from the value of the gross estate. For a resident not a citizen, who was a citizen or subject of a foreign country for which the President has issued a proclamation under section 2014(h), the credit is allowable only if the country of which the decedent was a national allows a similar credit to decedents who were U.S. citizens residing in that country. The credit is authorized either by statute or by treaty. If a credit is authorized by a treaty, whichever of the following is the most beneficial to the estate is allowed. • The credit figured under the treaty. • The credit figured under the statute. • The credit figured under the treaty, plus the credit figured under the statute for death taxes paid to each political subdivision or possession of the treaty country that are not directly or indirectly creditable under the treaty. Under the statute, the credit is authorized for all death taxes (national and local) imposed in the foreign country. Whether local taxes are the basis for a credit under a treaty depends upon the provisions of the particular treaty. If a credit for death taxes paid in more than one foreign country is allowable, a separate computation of the credit must be made for each foreign country. The copies of Schedule P on which the additional computations are made should be attached to the copy of Schedule P provided in the return. The total credit allowable for any property, whether subjected to tax by one or more than one foreign country, is limited to the amount of the federal estate tax attributable to the property. The anticipated amount of the credit may be figured on the return, but the credit cannot finally be allowed until the foreign tax has been paid and a Form 706-CE evidencing payment is filed. Section 2014(g) provides that for credits for foreign death taxes, each U.S. possession is deemed a foreign country. Convert death taxes paid to the foreign country into U.S. dollars by using the rate of exchange in effect at the time each payment of foreign tax is made. If a credit is claimed for any foreign death tax that is later recovered, see Regulations section 20.2016-1 for the notice required within 30 days. -42- Instructions for Form 706 (Rev. 09-2022)

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Limitation Period The credit for foreign death taxes is limited to those taxes that were actually paid and for which a credit was claimed within the later of 4 years after the filing of the estate tax return, before the date of expiration of any extension of time for payment of the federal estate tax, or 60 days after a final decision of the Tax Court on a timely filed petition for a redetermination of a deficiency. Credit Under the Statute For the credit allowed by the statute, the question of whether particular property is situated in the foreign country imposing the tax is determined by the same principles that would apply in determining whether similar property of a nonresident not a U.S. citizen is situated within the United States for purposes of the federal estate tax. See the Instructions for Form 706-NA. Computation of Credit Under the Statute Item 1. Enter the amount of the estate, inheritance, legacy, and succession taxes paid to the foreign country and its possessions or political subdivisions, attributable to property that is: • Situated in that country, • Subjected to these taxes, and • Included in the gross estate. The amount entered on item 1 should not include any tax paid to the foreign country for property not situated in that country and should not include any tax paid to the foreign country for property not included in the gross estate. If only a part of the property subjected to foreign taxes is both situated in the foreign country and included in the gross estate, it will be necessary to determine the portion of the taxes attributable to that part of the property. Also, attach the computation of the amount entered on item 1. Item 2. Enter the value of the gross estate, less the total of the deductions on items 21 and 22 of Part 5—Recapitulation. Item 3. Enter the value of the property situated in the foreign country that is subjected to the foreign taxes and included in the gross estate, less those portions of the deductions taken on Schedules M and O that are attributable to the property. Item 4. Subtract any credit claimed on line 15 for federal gift taxes on pre-1977 gifts (section 2012) from line 12 of Part 2—Tax Computation, and enter the balance on item 4 of Schedule P. Credit Under Treaties If you are reporting any items on this return based on the provisions of a death tax treaty, you may have to attach a statement to this return disclosing the return position that is treaty based. See Regulations section 301.6114-1 for details. In general. If the provisions of a treaty apply to the estate of a U.S. citizen or resident, a credit is authorized for payment of the foreign death tax or taxes specified in the treaty. Treaties with death tax conventions are in effect with the following countries: Australia, Austria, Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, South Africa, Switzerland, and the United Kingdom. A credit claimed under a treaty is in general figured on Schedule P in the same manner as the credit is figured under the statute with the following principal exceptions. • The situs rules contained in the treaty apply in determining whether property was situated in the foreign country. • The credit may be allowed only for payment of the death tax or taxes specified in the treaty (but see the instructions earlier for credit under the statute for death taxes paid to each political subdivision or possession of the treaty country that are not directly or indirectly creditable under the treaty). • If specifically provided, the credit is proportionately shared for the tax applicable to property situated outside both countries, or that was deemed in some instances situated within both countries. • The amount entered on item 4 of Schedule P is the amount shown on line 12 of Part 2—Tax Computation, less the total of the credits claimed for federal gift taxes on pre-1977 gifts (section 2012) and for tax on prior transfers (line 14 of Part 2—Tax Computation). (If a credit is claimed for tax on prior transfers, it will be necessary to complete Schedule Q before completing Schedule P.) For examples of computations of credits under the treaties, see the applicable regulations. Note. For computation of credit, in cases where property is situated outside both countries or deemed situated within both countries, see the appropriate treaty for details. Schedule Q—Credit for Tax on Prior Transfers General Complete Schedule Q and file it with the return if you claim a credit on Part 2—Tax Computation, line 14. The term “transferee” means the decedent for whose estate this return is filed. If the transferee received property from a transferor who died within 10 years before, or 2 years after, the transferee, a credit is allowable on this return for all or part of the federal estate tax paid by the transferor's estate for the transfer. There is no requirement that the property be identified in the estate of the transferee or that it exist on the date of the transferee's death. It is sufficient for the allowance of the credit that the transfer of the property was subjected to federal estate tax in the estate of the transferor and that the specified period of time has not elapsed. A credit may be allowed for property received as the result of the exercise or nonexercise of a power of appointment when the property is included in the gross estate of the donee of the power. If the transferee was the transferor's surviving spouse, no credit is allowed for property received from the transferor to the extent that a marital deduction was allowed to the transferor's estate for the property. There is no credit for tax on prior transfers for federal gift taxes paid in connection with the transfer of the property to the transferee. If you are claiming a credit for tax on prior transfers on Form 706-NA, you should first complete and attach Part 5—Recapitulation from Form 706 before figuring the credit on Schedule Q from Form 706. Section 2056(d)(3) contains specific rules for allowing a credit for certain transfers to a spouse who was not a U.S. citizen where the property passed outright to the spouse, or to a qualified domestic trust. Instructions for Form 706 (Rev. 09-2022) -43-

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Property The term “property” includes any interest (legal or equitable) of which the transferee received the beneficial ownership. The transferee is considered the beneficial owner of property over which the transferee received a general power of appointment. Property does not include interests to which the transferee received only a bare legal title, such as that of a trustee. Neither does it include an interest in property over which the transferee received a power of appointment that is not a general power of appointment. In addition to interests in which the transferee received the complete ownership, the credit may be allowed for annuities, life estates, terms for years, remainder interests (whether contingent or vested), and any other interest that is less than the complete ownership of the property, to the extent that the transferee became the beneficial owner of the interest. Maximum Amount of the Credit The maximum amount of the credit is the smaller of: 1. The amount of the estate tax of the transferor's estate attributable to the transferred property, or 2. The amount by which: a. An estate tax on the transferee's estate determined without the credit for tax on prior transfers exceeds b. An estate tax on the transferee's estate determined by excluding from the gross estate the net value of the transfer. If credit for a particular foreign death tax may be taken under either the statute or a death duty convention, and on this return the credit actually is taken under the convention, then no credit for that foreign death tax may be taken into consideration in figuring estate tax (2a) or estate tax (2b) above. Percent Allowable Where transferee predeceased the transferor. If not more than 2 years elapsed between the dates of death, the credit allowed is 100% of the maximum amount. If more than 2 years elapsed between the dates of death, no credit is allowed. Where transferor predeceased the transferee. The percent of the maximum amount that is allowed as a credit depends on the number of years that elapsed between dates of death. It is determined using the following table. Period of Time Exceeding Not Exceeding Percent Allowable . . . - - - - - 2 years 100 2 years 4 years 80 4 years 6 years 60 6 years 8 years 40 8 years 10 years 20 10 years - - - - - none How To Figure the Credit A worksheet for Schedule Q is provided to allow you to figure the limits before completing Schedule Q. Transfer the appropriate amounts from the worksheet to Schedule Q as indicated on the schedule. You do not need to file the worksheet with Form 706, but keep it for your records. Cases involving transfers from two or more transferors. Part I of the worksheet and Schedule Q enable you to figure the credit for as many as three transferors. The number of transferors is irrelevant to Part II of the worksheet. If you are figuring the credit for more than three transferors, use more than one worksheet and Schedule Q, Part I, and combine the totals for the appropriate lines. Section 2032A additional tax. If the transferor's estate elected special-use valuation and the additional estate tax of section 2032A(c) was imposed at any time up to 2 years after the death of the decedent for whom you are filing this return, check the box on Schedule Q. On lines 1 and 9 of the worksheet, include the property subject to the additional estate tax at its FMV rather than its special-use value. On line 10 of the worksheet, include the additional estate tax paid as a federal estate tax paid. How To Complete the Schedule Q Worksheet Most of the information to complete Part I of the worksheet should be obtained from the transferor's Form 706. Line 5. Enter on line 5 the applicable marital deduction claimed for the transferor's estate (from the transferor's Form 706). Lines 10 through 18. Enter on these lines the appropriate taxes paid by the transferor's estate. If the transferor's estate elected to pay the federal estate tax in installments, enter on line 10 only the total of the installments that have actually been paid at the time you file this Form 706. See Rev. Rul. 83-15, 1983-1 C.B. 224, for more details. Line 21. Add lines 11 (allowable applicable credit) and 13 (foreign death taxes credit) of Part 2—Tax Computation to the amount of any credit taken (on line 15) for federal gift taxes on pre-1977 gifts (section 2012). Subtract this total from Part 2—Tax Computation, line 8. Enter the result on line 21 of the worksheet. Line 26. If you figured the marital deduction using the unlimited marital deduction in effect for decedents dying after 1981, for purposes of determining the marital deduction for the reduced gross estate, see Rev. Rul. 90-2, 1990-1 C.B. 169. To determine the “reduced adjusted gross estate,” subtract the amount on line 25 of the Worksheet for Schedule Q from the amount on line 24 of the worksheet. If community property is included in the amount on line 24 of the worksheet, figure the reduced adjusted gross estate using the rules of Regulations section 20.2056(c)-2 and Rev. Rul. 76-311, 1976-2 C.B. 261. -44- Instructions for Form 706 (Rev. 09-2022)

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Worksheet for Schedule Q—Credit for Tax on Prior Transfers Part I Transferor’s tax on prior transfers Total for all transfers (line 8 only) Item Transferor (From Schedule Q) A B C 1. Gross value of prior transfer to this transferee . . . . . . . . . . . . . 2. Death taxes payable from prior transfer . . . . . . . . . . . . . . . . . 3. Encumbrances allocable to prior transfer . . . . . . . . . . . . . . . . 4. Obligations allocable to prior transfer . . . . . . . . . . . . . . . . . . 5. Marital deduction applicable to line 1 above, as shown on transferor’s Form 706 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. TOTAL. Add lines 2, 3, 4, and 5 . . . . . . . . . . . . . . . . . . . . . 7. Net value of transfers. Subtract line 6 from line 1 . . . . . . . . . . 8. Net value of transfers. Add columns A, B, and C of line 7 . . . . . 9. Transferor’s tentative taxable estate (see line 3a, page 1, Form 706) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Federal estate tax paid . . . . . . . . . . . . . . . . . . . . . . . . . . 11. State death taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Foreign death taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . 13. Other death taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . 14. TOTAL taxes paid. Add lines 10, 11, 12, and 13 . . . . . . . . . . . 15. Value of transferor’s estate. Subtract line 14 from line 9 . . . . . . 16. Net federal estate tax paid on transferor’s estate . . . . . . . . . . . 17. Credit for gift tax paid on transferor’s estate with respect to pre-1977 gifts (section 2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Credit allowed transferor’s estate for tax on prior transfers from prior transferor(s) who died within 10 years before death of decedent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. Tax on transferor’s estate. Add lines 16, 17, and 18 . . . . . . . . 20. Transferor’s tax on prior transfers ((line 7 ÷ line 15) × line 19 of respective estates) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II Transferee’s tax on prior transfers Item Amount 21. Transferee’s actual tax before allowance of credit for prior transfers (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. 22. Total gross estate of transferee from line 1 of the Tax Computation, page 1, Form 706 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. 23. Net value of all transfers from line 8 of this worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. 24. Transferee’s reduced gross estate. Subtract line 23 from line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24. 25. Total debts and deductions (not including marital and charitable deductions) (line 3b of Part 2—Tax Computation, page 1; and items 18, 19, and 20 of the Recapitulation, page 3, Form 706) . . . . . . . . . . 25. 26. Marital deduction from item 21, Recapitulation, page 3, Form 706 (see instructions) . . . . . . . . . . . . . 26. 27. Charitable bequests from item 22, Recapitulation, page 3, Form 706 . . . . . . . . . . . . . . . . . . . . . . 27. 28. Charitable deduction proportion ([line 23 ÷ (line 22 – line 25)] × line 27) . . . . . . . . . . . . . . . . . . . . 28. 29. Reduced charitable deduction. Subtract line 28 from line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . 29. 30. Transferee’s deduction as adjusted. Add lines 25, 26, and 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30. 31. (a) Transferee’s reduced taxable estate. Subtract line 30 from line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31(a). (b) Adjusted taxable gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31(b). (c) Total reduced taxable estate. Add lines 31(a) and 31(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31(c). 32. Tentative tax on reduced taxable estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32. 33. (a) Post-1976 gift taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . 33(a). (b) Unified credit (applicable credit amount) . . . . . . . . . . . . . . . . 33(b). (c) Section 2012 gift tax credit . . . . . . . . . . . . . . . . . . . . . . . . 33(c). (d) Section 2014 foreign death tax credit . . . . . . . . . . . . . . . . . . 33(d). (e) Total credits. Add lines 33(a) through 33(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33(e). 34. Net tax on reduced taxable estate. Subtract line 33(e) from line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34. 35. Transferee’s tax on prior transfers. Subtract line 34 from line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35. Instructions for Form 706 (Rev. 09-2022) -45-

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Schedules R and R-1—Generation-Skipping Transfer Tax Introduction and Overview Schedule R is used to figure the generation-skipping transfer (GST) tax that is payable by the estate. Schedule R-1 is used to figure the GST tax that is payable by certain trusts that are includible in the gross estate. The GST tax reported on Form 706 is imposed on only direct skips occurring at death. Unlike the estate tax, which is imposed on the value of the entire taxable estate regardless of who receives it, the GST tax is imposed on only the value of interests in property, wherever located, that actually pass to certain transferees, who are referred to as skip persons (defined later). For purposes of Form 706, the property interests transferred must be includible in the gross estate before they are subject to the GST tax. Therefore, the first step in figuring the GST tax liability is to determine the property interests includible in the gross estate by completing Schedules A through I of Form 706. The second step is to determine who the skip persons are. To do this, assign each transferee to a generation and determine whether each transferee is a natural person or a trust for GST purposes. See section 2613 and Regulations section 26.2612-1(d) for details. The third step is to determine which skip persons are transferees of interests in property. If the skip person is a natural person, anything transferred is an interest in property. If the skip person is a trust, make this determination using the rules under Interest in property, later. These first three steps are described in detail under Determining Which Transfers Are Direct Skips, later. The fourth step is to determine whether to enter the transfer on Schedule R or on Schedule R-1. See the rules under Dividing Direct Skips Between Schedules R and R-1, later. The fifth step is to complete Schedules R and R-1 using the How To Complete instructions for each schedule. Determining Which Transfers Are Direct Skips Effective dates. The rules below apply only for the purpose of determining if a transfer is a direct skip that should be reported on Schedule R or R-1 of Form 706. In general. The GST tax is effective for the estates of decedents dying after October 22, 1986. Irrevocable trusts. The GST tax will not apply to any transfer under a trust that was irrevocable on September 25, 1985, but only to the extent that the transfer was not made out of corpus added to the trust after September 25, 1985. An addition to the corpus after that date will cause a proportionate part of future income and appreciation to be subject to the GST tax. For more information, see Regulations section 26.2601-1(b)(1). Mental disability. If, on October 22, 1986, the decedent was under a mental disability to change the disposition of property owned and did not regain the competence to dispose of property before death, the GST tax will not apply to any property included in the gross estate (other than property transferred on behalf of the decedent during life and after October 21, 1986). The GST tax will also not apply to any transfer under a trust to the extent that the trust consists of property included in the gross estate (other than property transferred on behalf of the decedent during life and after October 21, 1986). Under a mental disability means the decedent lacked the competence to execute an instrument governing the disposition of property owned, regardless of whether there was an adjudication of incompetence or an appointment of any other person charged with the care of the person or property of the transferor. If the decedent had been adjudged mentally incompetent, a copy of the judgment or decree must be filed with this return. If the decedent had not been adjudged mentally incompetent, the executor must file with the return a certification from a qualified physician stating that in the physician’s opinion the decedent had been mentally incompetent at all times on and after October 22, 1986, and that the decedent had not regained the competence to modify or revoke the terms of the trust or will prior to the decedent’s death or a statement as to why no such certification may be obtained from a physician. Direct skip. The GST tax reported on Form 706 and Schedule R-1 is imposed only on direct skips. For purposes of Form 706, a direct skip is a transfer that is: • Subject to the estate tax, • Of an interest in property, and • To a skip person. All three requirements must be met before the transfer is subject to the GST tax. A transfer is subject to the estate tax if you are required to list it on any of Schedules A through I of Form 706. To determine if a transfer is of an interest in property and to a skip person, you must first determine if the transferee is a natural person or a trust, as defined later. Trust. For purposes of the GST tax, a trust includes not only an ordinary trust (as defined in Special rule for trusts other than ordinary trusts, later), but also any other arrangement (other than an estate) which, although not explicitly a trust, has substantially the same effect as a trust. For example, a trust includes life estates with remainders, terms for years, and insurance and annuity contracts. Substantially separate and independent shares of different beneficiaries in a trust are treated as separate trusts. Interest in property. If a transfer is made to a natural person, it is always considered a transfer of an interest in property for purposes of the GST tax. If a transfer is made to a trust, a person will have an interest in the property transferred to the trust if that person either has a present right to receive income or corpus from the trust (such as an income interest for life) or is a permissible current recipient of income or corpus from the trust (that is, may receive income or corpus at the discretion of the trustee). Skip person. A transferee who is a natural person is a skip person if that transferee is assigned to a generation that is two or more generations below the generation assignment of the decedent. See Determining the generation of a transferee, later. A transferee who is a trust is a skip person if all the interests in the property (as defined above) transferred to the -46- Instructions for Form 706 (Rev. 09-2022)

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trust are held by skip persons. Thus, whenever a non-skip person has an interest in a trust, the trust will not be a skip person even though a skip person also has an interest in the trust. A trust will also be a skip person if there are no interests in the property transferred to the trust held by any person, and future distributions or terminations from the trust can be made only to skip persons. Non-skip person. A non-skip person is any transferee who is not a skip person. Determining the generation of a transferee. Generally, a generation is determined along family lines as follows. 1. Where the beneficiary is a lineal descendant of a grandparent of the decedent (that is, the decedent's cousin, niece, nephew, etc.), the number of generations between the decedent and the beneficiary is determined by subtracting the number of generations between the grandparent and the decedent from the number of generations between the grandparent and the beneficiary. 2. Where the beneficiary is a lineal descendant of a grandparent of a spouse (or former spouse) of the decedent, the number of generations between the decedent and the beneficiary is determined by subtracting the number of generations between the grandparent and the spouse (or former spouse) from the number of generations between the grandparent and the beneficiary. 3. A person who at any time was married to a person described in (1) or (2) above is assigned to the generation of that person. A person who at any time was married to the decedent is assigned to the decedent's generation. 4. A relationship by adoption or half-blood is treated as a relationship by whole-blood. 5. A person who is not assigned to a generation according to (1), (2), (3), or (4) above is assigned to a generation based on the birth date, as follows. a. A person who was born not more than 121/2 years after the decedent is in the decedent's generation. b. A person born more than 121/2 years, but not more than 371/2 years, after the decedent is in the first generation younger than the decedent. c. A similar rule applies for a new generation every 25 years. If more than one of the rules for assigning generations applies to a transferee, that transferee is generally assigned to the youngest of the generations that would apply. If an estate, trust, partnership, corporation, or other entity (other than certain charitable organizations and trusts described in sections 511(a)(2) and 511(b)(2)) is a transferee, then each person who indirectly receives the property interests through the entity is treated as a transferee and is assigned to a generation, as explained in the above rules. However, this look-through rule does not apply for the purpose of determining whether a transfer to a trust is a direct skip. Generation assignment where intervening parent is deceased. A special rule may apply in the case of the death of a parent of the transferee. For terminations, distributions, and transfers after December 31, 1997, the existing rule that applied to grandchildren of the decedent has been extended to apply to other lineal descendants. If property is transferred to an individual who is a descendant of a parent of the transferor, and that individual's parent (who is a lineal descendant of the parent of the transferor) is deceased at the time the transfer is subject to gift or estate tax, then for purposes of generation assignment, the individual is treated as if the individual is a member of the generation that is one generation below the lower of: • The transferor's generation; or • The generation assignment of the youngest living ancestor of the individual, who is also a descendant of the parent of the transferor. The same rules apply to the generation assignment of any descendant of the individual. This rule does not apply to a transfer to an individual who is not a lineal descendant of the transferor if the transferor has any living lineal descendants. If any transfer of property to a trust would have been a direct skip except for this generation assignment rule, then the rule also applies to transfers from the trust attributable to such property. See the examples in Regulations section 26.2651-1(c). Generation assignment under Notice 2017-15. Notice 2017-15 permits taxpayers to reduce their GST exemption allocated to transfers that were made to or for the benefit of transferees whose generation assignment is changed as a result of the Windsor decision. A taxpayer’s GST exemption that was allocated to a transfer to (or to a trust for the sole benefit of) one or more transferees whose generation assignment should have been determined on the basis of a familial relationship as the result of the Windsor decision, and are non-skip persons, is deemed void. For additional information, go to IRS.gov/Businesses/Small-Businesses- Self-Employed/Estate-and-Gift-Taxes. Ninety-day rule. For purposes of determining if an individual's parent is deceased at the time of a testamentary transfer, an individual's parent who dies no later than 90 days after a transfer occurring by reason of the death of the transferor is treated as having predeceased the transferor. The 90-day rule applies to transfers occurring on or after July 18, 2005. See Regulations section 26.2651-1 for more information. Charitable organizations. Charitable organizations and trusts described in sections 511(a)(2) and 511(b)(2) are assigned to the decedent's generation. Transfers to such organizations are therefore not subject to the GST tax. Charitable remainder trusts. Transfers to or in the form of charitable remainder annuity trusts, charitable remainder unitrusts, and pooled income funds are not considered made to skip persons and, therefore, are not direct skips even if all of the life beneficiaries are skip persons. Estate tax value. Estate tax value is the value shown on Schedules A through I of this Form 706. Examples. The rules above can be illustrated by the following examples. 1. Under the will, the decedent's house is transferred to the decedent's child for the child’s life, with the remainder passing to the child’s children. This transfer is made to a “trust” even though there is no explicit trust instrument. The interest in the property transferred (the present right Instructions for Form 706 (Rev. 09-2022) -47-

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to use the house) is transferred to a non-skip person (the decedent's child). Therefore, the trust is not a skip person because there is an interest in the transferred property that is held by a non-skip person. The transfer is not a direct skip. 2. The will bequeaths $100,000 to the decedent's grandchild. This transfer is a direct skip that is not made in trust and should be shown on Schedule R. 3. The will establishes a trust that is required to accumulate income for 10 years and then pay its income to the decedent's grandchildren for the rest of their lives and, upon their deaths, distribute the corpus to the decedent's great-grandchildren. Because the trust has no current beneficiaries, there are no present interests in the property transferred to the trust. All of the persons to whom the trust can make future distributions (including distributions upon the termination of interests in property held in trust) are skip persons (for example, the decedent's grandchildren and great-grandchildren). Therefore, the trust itself is a skip person and you should show the transfer on Schedule R. 4. The will establishes a trust that is to pay all of its income to the decedent's grandchildren for 10 years. At the end of 10 years, the corpus is to be distributed to the decedent's children. All of the present interests in this trust are held by skip persons. Therefore, the trust is a skip person and you should show this transfer on Schedule R. You should show the estate tax value of all the property transferred to the trust even though the trust has some ultimate beneficiaries who are non-skip persons. Dividing Direct Skips Between Schedules R and R-1 Report all generation-skipping transfers on Schedule R unless the rules below specifically provide that they are to be reported on Schedule R-1. Under section 2603(a)(2), the GST tax on direct skips from a trust (as defined for GST tax purposes) is to be paid by the trustee and not by the estate. Schedule R-1 serves as a notification from the executor to the trustee that a GST tax is due. For a direct skip to be reportable on Schedule R-1, the trust must be includible in the decedent's gross estate. If the decedent was a surviving spouse receiving lifetime benefits from a marital deduction power of appointment (or QTIP) trust created by the decedent's spouse, then transfers caused by reason of the decedent's death from that trust to skip persons are direct skips required to be reported on Schedule R-1. If a direct skip is made “from a trust” under these rules, it is reportable on Schedule R-1 even if it is also made “to a trust” rather than to an individual. Similarly, if property in a trust (as defined for GST tax purposes) is included in the decedent's gross estate under section 2035, 2036, 2037, 2038, 2039, 2041, or 2042 and such property is, by reason of the decedent's death, transferred to skip persons, the transfers are direct skips required to be reported on Schedule R-1. Special rule for trusts other than ordinary trusts. An ordinary trust is defined in Regulations section 301.7701-4(a) TIP as “an arrangement created by a will or by an inter vivos declaration whereby trustees take title to property for the purpose of protecting or conserving it for the beneficiaries under the ordinary rules applied in chancery or probate courts.” Direct skips from ordinary trusts are required to be reported on Schedule R-1 regardless of their size unless the executor is also a trustee (see Executor as trustee below). Direct skips from trusts that are trusts for GST tax purposes but are not ordinary trusts are to be shown on Schedule R-1 only if the total of all tentative maximum direct skips from the entity is $250,000 or more. If this total is less than $250,000, the skips should be shown on Schedule R. For purposes of the $250,000 limit, tentative maximum direct skips is the amount you would enter on line 5 of Schedule R-1 if you were to file that schedule. A liquidating trust (such as a bankruptcy trust) under Regulations section 301.7701-4(d) is not treated as an ordinary trust for the purposes of this special rule. If the proceeds of a life insurance policy are includible in the gross estate and are payable to a beneficiary who is a skip person, the transfer is a direct skip from a trust that is not an ordinary trust. It should be reported on Schedule R-1 if the total of all the tentative maximum direct skips from the company is $250,000 or more. Otherwise, it should be reported on Schedule R. Similarly, if an annuity is includible on Schedule I and its survivor benefits are payable to a beneficiary who is a skip person, then the estate tax value of the annuity should be reported as a direct skip on Schedule R-1 if the total tentative maximum direct skips from the entity paying the annuity are $250,000 or more. Executor as trustee. If any of the executors of the decedent's estate are trustees of the trust, then all direct skips for that trust must be shown on Schedule R and not on Schedule R-1, even if they would otherwise have been required to be shown on Schedule R-1. This rule applies even if the trust has other trustees who are not executors of the decedent's estate. How To Complete Schedules R and R-1 Valuation. Enter on Schedules R and R-1 the estate tax value of the property interests subject to the direct skips. If you elected alternate valuation (section 2032) and/or special-use valuation (section 2032A), you must use the alternate and/or special-use values on Schedules R and R-1. How To Complete Schedule R Part 1. GST Exemption Reconciliation Part 1, line 6, of both Parts 2 and 3, and line 4 of Schedule R-1 are used to allocate the decedent's GST exemption. This allocation is made by filing Form 706 and attaching a completed Schedule R and/or R-1. Once made, the allocation is irrevocable. You are not required to allocate all of the decedent's GST exemption. However, the portion of the exemption that you do not allocate will be allocated by the IRS under the deemed allocation of unused GST exemption rules of section 2632(e). For transfers made through 1998, the GST exemption was $1 million. The current GST exemption is $12,060,000. The exemption amounts for 1999 through 2022 are as follows. -48- Instructions for Form 706 (Rev. 09-2022)

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Year of transfer GST exemption 1999 $1,010,000 2000 $1,030,000 2001 $1,060,000 2002 $1,100,000 2003 $1,120,000 2004 and 2005 $1,500,000 2006, 2007, and 2008 $2,000,000 2009 $3,500,000 2010 and 2011 $5,000,000 2012 $5,120,000 2013 $5,250,000 2014 $5,340,000 2015 $5,430,000 2016 $5,450,000 2017 $5,490,000 2018 $11,180,000 2019 $11,400,000 2020 $11,580,000 2021 $11,700,000 2022 $12,060,000 The amount of each increase can only be allocated to transfers made (or appreciation that occurred) during or after the year of the increase. The following example shows the application of this rule. Example. In 2003, Alex made a direct skip of $1,120,000 and applied the full $1,120,000 of GST exemption to the transfer. Alex made a $450,000 taxable direct skip in 2004 and another of $90,000 in 2006. For 2004, Alex can only apply $380,000 of exemption ($380,000 inflation adjustment from 2004) to the $450,000 transfer in 2004. For 2006, Alex can apply $90,000 of exemption to the 2006 transfer, but nothing to the transfer made in 2004. At the end of 2006, Alex would have $410,000 of unused exemption that can apply to future transfers (or appreciation) starting in 2007. Special QTIP election. In the case of property for which a marital deduction is allowed to the decedent's estate under section 2056(b)(7) (QTIP election), section 2652(a)(3) allows you to treat such property for purposes of the GST tax as if the election to be treated as qualified terminable interest property had not been made. The section 2652(a)(3) election must include the value of all property in the trust for which a QTIP election was allowed under section 2056(b)(7). If a section 2652(a)(3) election is made, then the decedent will, for GST tax purposes, be treated as the transferor of all the property in the trust for which a marital deduction was allowed to the decedent's estate under section 2056(b)(7). In this case, the executor of the decedent's estate may allocate part or all of the decedent's GST exemption to the property. You make the election simply by listing qualifying property on line 9 of Part 1. Line 2. These allocations will have been made either on Forms 709 filed by the decedent or on Notices of Allocation made by the decedent for inter vivos transfers that were not direct skips but to which the decedent allocated the GST exemption. These allocations by the decedent are irrevocable. Also include on this line allocations deemed to have been made by the decedent under the rules of section 2632. Unless the decedent elected out of the deemed allocation rules, allocations are deemed to have been made in the following order. 1. To inter vivos direct skips. 2. Beginning with transfers made after December 31, 2000, to lifetime transfers to certain trusts, by the decedent, that constituted indirect skips that were subject to the gift tax. For more information, see section 2632 and related regulations. Line 3. Make an entry on this line if you are filing Form(s) 709 for the decedent and wish to allocate any exemption. Lines 4, 5, and 6. These lines represent your allocation of the GST exemption to direct skips made by reason of the decedent's death. Complete Parts 2 and 3 and Schedule R-1 before completing these lines. Line 9. Line 9 is used to allocate the remaining unused GST exemption (from line 8) and to help you figure the trust's inclusion ratio. Line 9 is a Notice of Allocation for allocating the GST exemption to trusts as to which the decedent is the transferor and from which a generation-skipping transfer could occur after the decedent's death. If line 9 is not completed, the deemed allocation at death rules will apply to allocate the decedent's remaining unused GST exemption. The exemption will first be allocated to property that is the subject of a direct skip occurring at the decedent's death, and then to trusts as to which the decedent is the transferor. To avoid the application of the deemed allocation rules, you should enter on line 9 every trust (except certain trusts entered on Schedule R-1, as described later) to which you wish to allocate any part of the decedent's GST exemption. Unless you enter a trust on line 9, the unused GST exemption will be allocated to it under the deemed allocation rules. If a trust is entered on Schedule R-1, the amount you entered on line 4 of Schedule R-1 serves as a Notice of Allocation and you need not enter the trust on line 9 unless you wish to allocate more than the Schedule R-1, line 4, amount to the trust. However, you must enter the trust on line 9 if you wish to allocate any of the unused GST exemption amount to it. Such an additional allocation would not ordinarily be appropriate in the case of a trust entered on Schedule R-1 when the trust property passes outright (rather than to another trust) at the decedent's death. However, where section 2032A property is involved, it may be appropriate to allocate additional exemption amounts to the property. See the instructions for line 10, later. To avoid application of the deemed allocation rules, Form 706 and Schedule R should be filed to allocate the exemption to trusts that may later have taxable terminations or distributions under section 2612 even if the form is not required to be filed to report estate or GST tax. Line 9, column C. Enter the GST exemption, included on lines 2 through 6 of Part 1 of Schedule R (discussed above), that was allocated to the trust. Line 9, column D. Allocate the amount on line 8 of Part 1 of Schedule R in line 9, column D. This amount may be allocated to transfers into trusts that are not otherwise reported on Form 706. For example, the line 8 amount may be allocated to an inter vivos trust established by the decedent during the decedent’s lifetime and not included in the gross estate. This allocation is made by identifying the trust on line 9 and making an allocation to it using column D. CAUTION ! Instructions for Form 706 (Rev. 09-2022) -49-

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If the trust is not included in the gross estate, value the trust as of the date of death. Inform the trustee of each trust listed on line 9 of the total GST exemption you allocated to the trust. The trustee will need this information to figure the GST tax on future distributions and terminations. Line 9, column E. Trust's inclusion ratio. The trustee must know the trust's inclusion ratio to figure the trust's GST tax for future distributions and terminations. You are not required to inform the trustee of the inclusion ratio and may not have enough information to figure it. Therefore, you are not required to make an entry in column E. However, column E and the worksheet later are provided to assist you in figuring the inclusion ratio for the trustee if you wish to do so. Inform the trustee of the amount of the GST exemption you allocated to the trust. Line 9, columns C and D, may be used to figure this amount for each trust. Note. This worksheet will figure an accurate inclusion ratio only if the decedent was the only settlor of the trust. Use a separate worksheet for each trust (or a separate share of a trust that is treated as a separate trust). WORKSHEET (Inclusion Ratio) 1. Total estate and gift tax value of all of the property interests that passed to the trust . . . . . . . . . .

2. Estate taxes, state death taxes, and other charges actually recovered from the trust . . . . . . . . . .

3. GST taxes imposed on direct skips to skip persons other than this trust and borne by the property transferred to this trust . . . . . . . . . . . . . . . .

4. GST taxes actually recovered from this trust (from Schedule R, Part 2, line 8; or Schedule R-1, line 6) . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Add lines 2 through 4 . . . . . . . . . . . . . . . . .

6. Subtract line 5 from line 1 . . . . . . . . . . . . . .

7. Add columns C and D of line 9 . . . . . . . . . . .

8. Divide line 7 by line 6 . . . . . . . . . . . . . . . . .

9. Trust's inclusion ratio. Subtract line 8 from 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . .

Line 10. Special-use allocation. For skip persons who receive an interest in section 2032A special-use property, you may allocate more GST exemption than the direct skip amount to reduce the additional GST tax that would be due when the interest is later disposed of or qualified use ceases. See Schedule A-1, earlier, for more details about this additional GST tax. Enter on line 10 the total additional GST exemption available to allocate to all skip persons who received any interest in section 2032A property. Attach a special-use allocation statement listing each such skip person and the amount of the GST exemption allocated to that person. If you do not allocate the GST exemption, it will automatically be allocated under the deemed allocation at death rules. To the extent any amount is not so allocated, it will be automatically allocated to the earliest disposition or cessation that is subject to the GST tax. Under certain circumstances, post-death events may cause the decedent to be treated as a transferor for purposes of chapter 13. Line 10 may be used to set aside an exemption amount for such an event. Attach a statement listing each such event and the amount of exemption allocated to that event. Parts 2 and 3 Use Part 2 to figure the GST tax on transfers in which the property interests transferred are to bear the GST tax on the transfers. Use Part 3 to report the GST tax on transfers in which the property interests transferred do not bear the GST tax on the transfers. Section 2603(b) requires that, unless the governing instrument provides otherwise, the GST tax is to be charged to the property constituting the transfer. Therefore, you will usually enter all of the direct skips on Part 2. You may enter a transfer on Part 3 only if the will or trust instrument directs, by specific reference, that the GST tax is not to be paid from the transferred property interests. Part 2, line 3. Enter zero on this line unless the will or trust instrument specifies that the GST taxes will be paid by property other than that constituting the transfer (as described above). Enter on line 3 the total of the GST taxes shown on Part 3 and Schedule(s) R-1 that are payable out of the property interests shown on Part 2, line 1. Part 2, line 6. Do not enter more than the amount on line 5. Additional allocations may be made using Part 1. Part 3, line 3. See the instructions for Part 2, line 3, above. Enter only the total of the GST taxes shown on Schedule(s) R-1 that are payable out of the property interests shown on Part 3, line 1. Part 3, line 6. See the instructions for Part 2, line 6, above. How To Complete Schedule R-1 Filing due date. Enter the due date of Form 706. You must send the copies of Schedule R-1 to the fiduciary before this date. Line 4. Do not enter more than the amount on line 3. If you wish to allocate an additional GST exemption, you must use Schedule R, Part 1. Making an entry on line 4 constitutes a Notice of Allocation of the decedent's GST exemption to the trust. Line 6. If the property interests entered on line 1 will not bear the GST tax, multiply line 6 by 40% (0.40). Signature. The executor(s) must sign Schedule R-1 in the same manner as Form 706. See Signature and Verification, earlier. Filing Schedule R-1. Attach to Form 706 one copy of each Schedule R-1 that you prepare. Send two copies of each Schedule R-1 to the fiduciary. Schedule U—Qualified Conservation Easement Exclusion If at the time of the contribution of the conservation easement, the value of the easement, the value of the land subject to the easement, or the value of any retained development right was different from the estate tax value, you must complete a separate computation in addition to completing Schedule U. Use a copy of Schedule U as a worksheet for this separate computation. Complete lines 4 through 14 of the worksheet Schedule U. However, the value you use on lines 4, 5, 7, and 10 of the worksheet is the value for these items CAUTION ! -50- Instructions for Form 706 (Rev. 09-2022)

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as of the date of the contribution of the easement, not the estate tax value. If the date of contribution and the estate tax values are the same, you do not need to do a separate computation. After completing the worksheet, enter the amount from line 14 of the worksheet on line 14 of Schedule U. Finish completing Schedule U by entering amounts on lines 4, 7, and 15 through 20, following the instructions later for those lines. At the top of Schedule U, enter "worksheet attached." Attach the worksheet to the return. Under section 2031(c), you may elect to exclude a portion of the value of land that is subject to a qualified conservation easement. You make the election by filing Schedule U with all of the required information and excluding the applicable value of the land that is subject to the easement on Part 5—Recapitulation, on item 12. To elect the exclusion, include on Schedule A, B, E, F, G, or H, as appropriate, the decedent's interest in the land that is subject to the exclusion. You must make the election on a timely filed Form 706, including extensions. The exclusion is the lesser of: • The applicable percentage of the value of land (after certain reductions) subject to a qualified conservation easement, or • $500,000. Once made, the election is irrevocable. General Requirements Qualified Land Land may qualify for the exclusion if all of the following requirements are met. • The decedent or a member of the decedent's family must have owned the land for the 3-year period ending on the date of the decedent's death. • No later than the date the election is made, a qualified conservation easement on the land has been made by the decedent, a member of the decedent's family, the executor of the decedent's estate, or the trustee of a trust that holds the land. • The land is located in the United States or one of its possessions. Member of Family Members of the decedent's family include the decedent's spouse; ancestors; lineal descendants of the decedent, of the decedent's spouse, and of the parents of the decedent; and the spouse of any lineal descendant. A legally adopted child of an individual is considered a child of the individual by blood. Indirect Ownership of Land The qualified conservation easement exclusion applies if the land is owned indirectly through a partnership, corporation, or trust, if the decedent owned (directly or indirectly) at least 30% of the entity. For the rules on determining ownership of an entity, see Ownership rules next. Ownership rules. An interest in property owned, directly or indirectly, by or for a corporation, partnership, or trust is considered proportionately owned by or for the entity's shareholders, partners, or beneficiaries. A person is the beneficiary of a trust only if the person has a present interest in the trust. For additional information, see the ownership rules in section 2057(e)(3). Qualified Conservation Easement A qualified conservation easement is one that would qualify as a qualified conservation contribution under section 170(h). It must be a contribution: • Of a qualified real property interest, • To a qualified organization, and • Exclusively for conservation purposes. Qualified real property interest. A qualified real property interest is any of the following. • The entire interest of the donor, other than a qualified mineral interest. • A remainder interest. • A restriction granted in perpetuity on the use that may be made of the real property. The restriction must include a prohibition on more than a de minimis use for commercial recreational activity. Qualified organization. A qualified organization includes the following. • Corporations and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals, without net earnings benefitting any individual shareholder and without activity with the purpose of influencing legislation or political campaigning, which: a. Receives more than one-third of its support from gifts, contributions, membership fees, or receipts from sales, admissions fees, or performance of services; or b. Is controlled by such an organization. • Any entity that qualifies under section 170(b)(1)(A)(v) or (vi). Conservation purpose. An easement has a conservation purpose if it is for: • The preservation of land areas for outdoor recreation by, or for the education of, the public; • The protection of a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem; or • The preservation of open space (including farmland and forest land) where such preservation is for the scenic enjoyment of the general public, or under a clearly delineated federal, state, or local conservation policy and will yield a significant public benefit. Specific Instructions Line 1 If the land is reported as one or more item numbers on a Form 706 schedule, simply list the schedule and item numbers. If the land subject to the easement is only part of an item, however, list the schedule and item number and describe the part subject to the easement. See the instructions for Schedule A—Real Estate, earlier, for information on how to describe the land. Instructions for Form 706 (Rev. 09-2022) -51-

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Line 3 Using the general rules for describing real estate, provide enough information so the IRS can value the easement. Give the date the easement was granted and by whom it was granted. Line 4 Enter on this line the gross value at which the land was reported on the applicable asset schedule on this Form 706. Do not reduce the value by the amount of any mortgage outstanding. Report the estate tax value even if the easement was granted by the decedent (or someone other than the decedent) prior to the decedent's death. Note. If the value of the land reported on line 4 was different at the time the easement was contributed from that reported on Form 706, see the Caution at the beginning of the Schedule U instructions. Line 5 The amount on line 5 should be the date of death value of any qualifying conservation easements granted prior to the decedent's death, whether granted by the decedent or someone other than the decedent, for which the exclusion is being elected. Note. If the value of the easement reported on line 5 was different at the time the easement was contributed than at the date of death, see the Caution at the beginning of the Schedule U instructions. Line 7 You must reduce the land value by the value of any development rights retained by the donor in the conveyance of the easement. A development right is any right to use the land for any commercial purpose that is not subordinate to or directly supportive of the use of the land as a farm for farming purposes. Note. If the value of the retained development rights reported on line 7 was different at the time the easement was contributed than at the date of death, see the Caution at the beginning of the Schedule U instructions. You do not have to make this reduction if everyone with an interest in the land (regardless of whether in possession) agrees to permanently extinguish the retained development right. The agreement must be filed with this return and must include all of the following information and terms. 1. A statement that the agreement is made under section 2031(c)(5). 2. A list of all persons in being, holding an interest in the land that is subject to the qualified conservation easement. Include each person's name, address, TIN, relationship to the decedent, and a description of their interest. 3. The items of real property shown on the estate tax return that are subject to the qualified conservation easement (identified by schedule and item number). 4. A description of the retained development right that is to be extinguished. 5. A clear statement of consent that is binding on all parties under applicable local law: a. To take whatever action is necessary to permanently extinguish the retained development rights listed in the agreement; and b. To be personally liable for additional taxes under section 2031(c)(5)(C) if this agreement is not implemented by the earlier of:

• The date that is 2 years after the date of the decedent's death, or

• The date of sale of the land subject to the qualified conservation easement. 6. A statement that in the event this agreement is not timely implemented, that they will report the additional tax on whatever return is required by the IRS and will file the return and pay the additional tax by the last day of the 6th month following the applicable date described above. All parties to the agreement must sign the agreement. For an example of an agreement containing some of the same terms, see Part 3 of Schedule A-1. Line 10 Enter the total value of the qualified conservation easements on which the exclusion is based. This could include easements granted by the decedent (or someone other than the decedent) prior to the decedent's death, easements granted by the decedent that take effect at death, easements granted by the executor after the decedent's death, or some combination of these. Use the value of the easement as of the date of death, even if the easement was granted prior to the date of death. But, if the value of the easement was different at the time the easement was contributed than at the date of death, see the Caution at the beginning of the Schedule U instructions. Explain how this value was determined and attach copies of any appraisals. Normally, the appropriate way to value a conservation easement is to determine the FMV of the land both before and after the granting of the easement, with the difference being the value of the easement. Reduce the reported value of the easement by the amount of any consideration received for the easement. If the date of death value of the easement is different from the value at the time the consideration was received, reduce the value of the easement by the same proportion that the consideration received bears to the value of the easement at the time it was granted. For example, assume the value of the easement at the time it was granted was $100,000 and $10,000 was received in consideration for the easement. If the easement was worth $150,000 at the date of death, you must reduce the value of the easement by $15,000 ($10,000/$100,000 × $150,000) and report the value of the easement on line 10 as $135,000. CAUTION ! -52- Instructions for Form 706 (Rev. 09-2022)

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Line 15 If a charitable contribution deduction for this land has been taken on Schedule O, enter the amount of the deduction here. If the easement was granted after the decedent's death, a contribution deduction may be taken on Schedule O, if it otherwise qualifies, as long as no income tax deduction was or will be claimed for the contribution by any person or entity. Line 16 Reduce the value of the land by the amount of any acquisition indebtedness on the land at the date of the decedent's death. Acquisition indebtedness includes the unpaid amount of: • Any indebtedness incurred by the donor in acquiring the property; • Any indebtedness incurred before the acquisition if the indebtedness would not have been incurred but for the acquisition; • Any indebtedness incurred after the acquisition if the indebtedness would not have been incurred but for the acquisition and the incurrence of the indebtedness was reasonably foreseeable at the time of the acquisition; and • The extension, renewal, or refinancing of acquisition indebtedness. Schedule PC—Protective Claim for Refund A protective claim for refund preserves the estate’s right to a refund of tax paid on any amount included in the gross estate which would be deductible under section 2053 but has not been paid or otherwise will not meet the requirements of section 2053 until after the limitations period for filing the claim has passed. See section 6511(a). Only use Schedule PC for section 2053 protective claims for refund being filed with Form 706. If the initial notice of the protective claim for refund is being submitted after Form 706 has been filed, use Form 843, Claim for Refund and Request for Abatement, to file the claim. Schedule PC may be used to file a section 2053 protective claim for refund by estates of decedents who died after December 31, 2011. It will also be used to inform the IRS when the contingency leading to the protective claim for refund is resolved and the refund due the estate is finalized. The estate must indicate whether the Schedule PC being filed is the initial notice of protective claim for refund, notice of partial claim for refund, or notice of the final resolution of the claim for refund. Because each separate claim or expense requires a separate Schedule PC, more than one Schedule PC may be included with Form 706, if applicable. Two copies of each Schedule PC must be included with Form 706. Note. Filing a section 2053 protective claim for refund on Schedule PC will not suspend the IRS’s review and examination of Form 706, nor will it delay the issuance of a closing letter for the estate. CAUTION ! Initial Notice of Claim The first Schedule PC to be filed is the initial notice of protective claim for refund. The estate will receive a written acknowledgment of receipt of the claim from the IRS. If the acknowledgment is not received within 180 days of filing the protective claim for refund on Schedule PC, the fiduciary should contact the IRS at 866-699-4083 to inquire about the receipt and processing of the claim. A certified mail receipt or other evidence of delivery is not sufficient to confirm receipt and processing of the protective claim for refund. Note. The written acknowledgment of receipt does not constitute a determination that all requirements for a valid protective claim for refund have been met. In general, the claim will not be subject to substantive review until the amount of the claim has been established. However, a claim can be disallowed at the time of filing. For example, the claim for refund will be rejected if: • The claim was not timely filed, • The claim was not filed by the fiduciary or other person with authority to act on behalf of the estate, • The acknowledgment of the penalties of perjury statement (on page 1 of Form 706) was not signed, or • The claim is not adequately described. If the IRS does not raise such a defect when the claim is filed, it will not be precluded from doing so in the later substantive review. The estate may be given an opportunity to cure any defects in the initial notice by filing a corrected and signed protective claim for refund before the expiration of the limitations period in section 6511(a) or within 45 days of notice of the defect, whichever is later. Related Ancillary Expenses If a section 2053 protective claim for refund has been adequately identified on Schedule PC, the IRS will presume that the claim includes certain expenses related to resolving, defending, or satisfying the claim. These ancillary expenses may include attorneys’ fees, court costs, appraisal fees, and accounting fees. The estate is not required to separately identify or substantiate these expenses; however, each expense must meet the requirements of section 2053 to be deductible. Notice of Final Resolution of Claim When an expense that was the subject of a section 2053 protective claim for refund is finally determined, the estate must notify the IRS that the claim for refund is ready for consideration. The notification should provide facts and evidence substantiating the deduction under section 2053 and the resulting recomputation of the estate tax liability. A separate notice of final resolution must be filed with the IRS for each resolved section 2053 protective claim for refund. There are two means by which the estate may notify the IRS of the resolution of the uncertainty that deprived the estate of the deduction when Form 706 was filed. The estate may file a supplemental Form 706 with an updated Schedule PC and include each schedule affected by the allowance of the deduction under section 2053. Page 1 of Form 706 should contain the notation “Supplemental Information—Notification of Consideration of Section 2053 Protective Claim(s) for Refund” and include the filing date of the initial notice of protective claim for refund. A copy of the initial notice of claim should also be submitted. Instructions for Form 706 (Rev. 09-2022) -53-

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Alternatively, the estate may notify the IRS by filing an updated Form 843. Form 843 must contain the notation “Notification of Consideration of Section 2053 Protective Claim(s) for Refund,” including the filing date of the initial notice of protective claim for refund, on page 1. A copy of the initial notice of claim must also be submitted. The estate should notify the IRS of resolution within 90 days of the date the claim or expense is paid or the date on which the amount of the claim becomes certain and no longer subject to contingency, whichever is later. Separate notifications must be submitted for every section 2053 protective claim for refund that was filed. If the final section 2053 claim or expense involves multiple or recurring payments, the 90-day period begins on the date of the last payment. The estate may also notify the IRS (not more than annually) as payments are being made and possibly qualify for a partial refund based on the amounts paid through the date of the notice. Specific Instructions Part 1. General Information Complete Part 1 by providing information that is correct and complete as of the time Schedule PC is filed. If filing an updated Schedule PC with a supplemental Form 706 or as notice of final resolution of the protective claim for refund, be sure to update the information from the original filing to ensure that it is accurate. Be particularly careful to verify that contact information (addresses and telephone numbers) and the reason for filing Schedule PC are indicated correctly. If the fiduciary is different from the executor identified on page 1 of Form 706 or has changed since the initial notice of protective claim for refund was filed, attach letters testamentary, letters of administration, or similar documentation evidencing the fiduciary's authority to file the protective claim for refund on behalf of the estate. Include a copy of Form 56, Notice Concerning Fiduciary Relationship, if it has been filed. Part 2. Claim Information For a protective claim for refund to be properly filed and considered, the claim or expense forming the basis of the potential section 2053 deduction must be clearly identified. Using the check boxes provided, indicate whether you are filing the initial claim for refund, a claim for partial refund, or a final claim. On the chart in Part 2, give the Form 706 schedule and item number of the claim or expense. List any amounts claimed under exceptions for ascertainable amounts (Regulations section 20.2053-1(d)(4)), claims and counterclaims in related matters (Regulations section 20.2053-4(b)), or claims under $500,000 (Regulations section 20.2053-4(c)). Provide all relevant information as described, including, most importantly, an explanation of the reasons and contingencies delaying the actual payment to be made in satisfaction of the claim or expense. Complete columns E and F only if filing a notice of partial or final resolution. Show the amount of ancillary or related expenses to be included in the claim for refund and indicate whether this amount is estimated, agreed upon, or has been paid. Also show the amount being claimed for refund. Note. If you made partial claims for a recurring expense, the amount presently claimed as a deduction under section 2053 will only include the amount presently claimed, not the cumulative amount. Part 3. Other Schedules PC and Forms 843 Filed by the Estate On the chart in Part 3, provide information on other protective claims for refund that have been previously filed on behalf of the estate (if any), whether on other Schedules PC or on Form 843. When the initial claim for refund is filed, only information from Form(s) 843 need be included in Part 3. However, when filing a partial or final claim for refund, complete Part 3 by including the status of all claims filed by or on behalf of the estate, including those filed on other Schedules PC with Form 706. For each such claim, give the place of filing, date of filing, and amount of the claim. Continuation Schedule When you need to list more assets or deductions than you have room for on one of the main schedules, use the Continuation Schedule at the end of Form 706. It provides a uniform format for listing additional assets from Schedules A through I and additional deductions from Schedules J, K, L, M, and O.

Please remember to do the following. • Use a separate Continuation Schedule for each main schedule you are continuing. Do not combine assets or deductions from different schedules on one Continuation Schedule. • Make copies of the blank schedule before completing it if you expect to need more than one. • Use as many Continuation Schedules as needed to list all the assets or deductions. • Enter the letter of the schedule you are continuing in the space at the top of the Continuation Schedule. • Use the Unit value column only if continuing Schedule B, E, or G. For all other schedules, use this space to continue the description. • Carry the total from the Continuation Schedules forward to the appropriate line on the main schedule. If continuing Report Where on Continuation Schedule Schedule E, Pt. 2 Percentage includible Alternate valuation date Schedules J, L, M Continued description of deduction Alternate valuation date and Alternate value Schedule O Character of institution Alternate valuation date and Alternate value Schedule O Amount of each deduction Value at date of death or amount deductible -54- Instructions for Schedules

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Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. Subtitle B and section 6109, and the regulations require you to provide this information. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential as required by section 6103. However, section 6103 allows or requires the Internal Revenue Service to disclose information from this form in certain circumstances. For example, we may disclose information to the Department of Justice for civil or criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths or possessions for use in administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. Failure to provide this information, or providing false information, may subject you to penalties. The time needed to complete and file this form and related schedules will vary depending on individual circumstances. The estimated average times are: Form Recordkeeping Learning about the law or the form Preparing the form Copying, assembling, and sending the form to the IRS Form 706 & embedded schedules 6 hr., 46 min. 7 hr., 39 min. 13 hr., 8 min. 9 hr., 10 min. Form Schedule R-1 (706) 6 min. 29 min. 24 min. 20 min. If you have comments concerning the accuracy of these time estimates or suggestions for making Form 706 simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments. Or you can write to: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. NW, IR-6526 Washington, DC 20224 Do not send the tax form to this address. Instead, see Where To File, earlier. Instructions for Form 706 (Rev. 09-2022) -55-

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Index

A Address, executor 5 Administration Expenses 35 Alternate valuation 11 Amending Form 706 3 Annuities 32 Applicable Credit Adjustment 10 Applicable Credit Amount 10 Authorized Representative 16 B Bonds 24 C Canadian marital credit 10 Charitable Deduction 41 Claim for refund 53 Close Corporations 17 Closing letters 4 Conservation Easement 50 Continuation Schedule 54 Credit for foreign death taxes 42 Credit for tax on prior transfers 43 D Death certificate 3 Debts of the decedent 36 Deductions 18 Direct skips 46 Disclaimer, qualified 42 Documents, supplemental 3 DSUE 18 E Election 14, 16 Election, lump-sum distribution 34 Estate tax closing letters 4 Estimated Values 20 Exclusion amount 6 Executor 2, 5 F Foreign Accounts 18 Foreign Death Taxes 42 Forms and publications, obtaining 4 Funeral Expenses 35 G General Information 16 General Instructions 1 Gross estate 1, 18 GST 46 GST exemption table 49 I Inclusion ratio for trust 50 Installment payments 14 Insurance 27 J Joint Property 27 L Liens 36 Line 3 Worksheet 16 Line 4 Worksheet 7 Line 7 Worksheet 8 Losses 37 Lump-sum distribution election 34 M Marital Deduction 37 Material participation 13 Member of family 12 Mortgages and liens 36 N Nonresident Noncitizens 2 P Part 1. Decedent and Executor 5 Part 2. Tax Computation 5 Part 3. Elections by the Executor 11 Part 4. General Information 16 Part 5. Recapitulation 18 Part 6. Portability of Deceased Spousal Unused Exclusion 18 Partnership Interests 17 Paying the Tax 3 Penalties 4 Portability 18 Powers of appointment 31 Protective Claim for Refund 53 Publications, obtaining 4 Purpose of Form 1 Q QDOT 40 QTIP 39 Qualified heir 12 Qualified real property 12 R Recapitulation 18 Residents of U. S. Possessions 2 Reversionary or Remainder Interests 16 Revisions of Form 706 1 Rounding off to whole dollars 4 S Schedule A-1, Section 2032A Valuation 22 Schedule A, Real Estate 21 Schedule B, Stocks and Bonds 24 Schedule C, Mortgages, Notes, and Cash 26 Schedule D, Insurance on Decedent's Life 27 Schedule E, Jointly Owned Property 27 Schedule F, Miscellaneous Property 28 Schedule G, Transfers During Decedent's Life 29 Schedule H, Powers of appointment 31 Schedule I, Annuities 32 Schedule J, Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims 35 Schedule K, Debts of the Decedent and Mortgages and Liens 36 Schedule L, Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims 37 Schedule M, Bequests to Surviving Spouses 37 Schedule O, Charitable, Public, and Similar Gifts and Bequests 41 Schedule P, Credit for Foreign Death Taxes 42 Schedule PC, Protective Claim for Refund 53 Schedule Q, Credit for Tax on Prior Transfers 43 Schedule U, Qualified Conservation Easement Exclusion 50 Schedules R and R-1, Generation-Skipping Transfer Tax 46 Section 2032A 12 Section 2035(a) transfers 30 Section 2036 transfers 30 Section 2037 transfers 30 Section 2038 transfers 30 Section 2044 17 Section 6163 16 Section 6166 14 Signature and verification 3 Social security number 5 Special Rule – Portability 20 Special-Use Valuation 12, 22 Specific Instructions 5 Stocks 24 T Table A, Unified Rate Schedule 6 Table of Basic Exclusion Amounts 9 Table of Estimated Values 19 Table, Taxable Gift Amount 9 Tax Computation 5 Taxable Gift Amount Table 9 Terminable Interests 38 Total Credits 10 Transfers, valuation rules 31 Trusts 18 U U. S. Citizens or Residents 2 Unified Credit (Applicable Credit Amount) 10 Unified credit adjustment 10 V Valuation methods 13 Valuation rules, transfers 31 W What's New 1 When To File 2 Where To File 2 Which Estates Must File 1 Worksheet for Schedule Q 45 Worksheet TG-Taxable Gifts Reconciliation 7 Worksheet, inclusion ratio for trust 50 Worksheet, line 3 16 Worksheet, line 4 7 Worksheet, line 7 8 -56-

(i1040s8)Instructions for Schedule 8812, Credits for Qualifying Children and Other Dependents (2022)#

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Department of the Treasury Internal Revenue Service 2022 Instructions for Schedule 8812 Credits for Qualifying Children and Other Dependents Use Schedule 8812 (Form 1040) to figure your child tax credit (CTC), credit for other depend- ents (ODC), and additional child tax credit (ACTC). The CTC and ODC are nonrefundable credits. The ACTC is a refundable credit. Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Schedule 8812 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Schedule8812. What’s New Child tax credit enhancements have expired. Many changes to the CTC for 2021 implemented by the American Rescue Plan Act of 2021, have expired. For tax year 2022: • The enhanced credit allowed for qualifying children under age 6 and children under age 18 has expired. For 2022, the initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where modified adjusted gross income exceeds $200,000 ($400,000 in 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 maximum ACTC amount for each qualifying child increased to $1,500. • The increased age allowance for a qualifying child has expired. A child must be under age 17 at the end of 2022 to be a qualifying child. ACTC and bona fide residents of Puerto Rico. Bona fide residents of Puerto Rico are no longer required to have three or more qualifying children to be eligible to claim the ACTC. Bona fide residents of Pu- erto Rico may be eligible to claim the ACTC if they have one or more qualifying children. Advance child tax credit payments. Advance child tax credit pay- ments have not been issued for 2022. Reminders Delayed refund for returns claiming ACTC. The IRS cannot issue refunds before mid-February 2023 for returns that properly claim ACTC. This time frame applies to the entire refund, not just the por- tion associated with ACTC. Abbreviations. The following abbreviations will be used in these in- structions when appropriate. • ACTC means additional child tax credit. • ATIN means adoption taxpayer identification number. • CTC means child tax credit. • ITIN means individual taxpayer identification 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 these instructions and will be defined as needed. General Instructions Taxpayer Identification Number Requirements You Must Have a TIN by the Due Date of Your Return If you, or your spouse if filing jointly, do not have an SSN or ITIN issued on or before the due date of your 2022 return (including exten- sions), you cannot claim the CTC, ODC, or ACTC on either your original or an amended 2022 return. If you apply for an ITIN on or before the due date of your 2022 return (including extensions) and the IRS issues you an ITIN as a re- sult 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 does not have the required SSN, you cannot use the child to claim the CTC or ACTC on either your original or an amended 2022 return. The required SSN is one that is valid for employment and is issued before the due date of your 2022 return (including extensions). If your qualifying child was born and died in 2022 and you do not have an SSN for the child, attach a copy of the child's birth certificate, death certificate, or hospital records. The document must show the child was born alive. If your qualifying child does not have the required SSN, but has another type of taxpayer identification number issued on or before the due date of your 2022 return (including extensions), you may be able -1- Nov 29, 2022 Cat. No. 59790P

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to claim the ODC for that child. See Credit for Other Dependents (ODC), later. Each Dependent You Use for the ODC Must Have a TIN by the Due Date of Your Return If you have a dependent who does not have an SSN, ITIN, or ATIN issued on or before the due date of your 2022 return (including exten- sions), you cannot use that dependent to claim the ODC on either your original or an amended 2022 return. If you apply for an ITIN or ATIN for the dependent on or before the due date of your 2022 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 de- termined 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 even if you are otherwise eligible to do so. If it is determined that your error was due to fraud, you will not be al- lowed to claim any of these credits for 10 years. You may also have to pay penalties. Form 8862 may be required. If your CTC (refundable or nonrefund- able 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 er- ror, you must attach Form 8862 to your tax return to claim the CTC, ACTC, or ODC unless an exception applies. See Form 8862, Informa- tion To Claim Certain Credits After Disallowance, and its instructions for more information, including whether an exception applies. Effect of Credit on Welfare Benefits Any refund you receive as a result of taking the ACTC cannot be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can re- ceive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs in- clude Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), and Supplemental Nutrition As- sistance Program (formerly food stamps). In addition, when determin- ing eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Check with your local benefits coordi- nator to find out if your refund will affect your benefits. Credits for Qualifying Children The CTC and ACTC are credits for individuals who claim a child as a dependent if the child meets certain conditions. To claim a child for the CTC and ACTC, the child must be your dependent, under age 17 at the end of 2022, and meet all the conditions in Steps 1 through 3 under Who Qualifies as Your Dependent in the Instructions for Form 1040. Example 1. Your child turned 17 on December 30, 2022, and is a citizen of the United States and claimed as a dependent on your re- turn. You cannot use the child to claim the CTC or ACTC because the child was not under age 17 at the end of 2022. For each qualifying child for whom you are claiming the CTC or ACTC, you must check the “Child tax credit” box in column (4) of the Dependents section on page 1 of Form 1040 or 1040-SR for the child. Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. If your child is age 17 or older at the end of 2022, see Cred- it for Other Dependents (ODC) next. Credit for Other Dependents (ODC) The ODC is for individuals with a dependent who meets the following conditions. 1. The person is claimed as a dependent on your return. To deter- mine if an individual is your dependent begin with Step 1 under Who Qualifies as Your Dependent in the Instructions for Form 1040. 2. The person cannot be used by you to claim the CTC or ACTC. See Credits for Qualifying Children, earlier. 3. The person was a U.S. citizen, U.S. national, or U.S. resident alien. For more information, see Pub. 519. If the person is your adop- ted child, see Adopted child, later. Example 2. Your sibling’s 10-year-old child, B, lives in Mexico and qualifies as your dependent. B is not a U.S. citizen, U.S. national, or U.S. resident alien. You cannot use B to claim the ODC. For each dependent for whom you are claiming the ODC, you must check the “credit for other dependents” box in column (4) of the De- pendents section on page 1 of Form 1040 or 1040-SR for the depend- ent. You cannot use the same child to claim the credits under Credits for Qualifying Children and the ODC. Adopted child. An adopted child is always treated as your own child. An adopted child includes 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 2022, that child meets condition (3), earlier, to be a qualifying person for the ODC. Limits on the CTC and ODC The maximum credit amount of your CTC and ODC may be reduced if either (1) or (2) applies. 1. The amount on line 18 of your Form 1040, 1040-SR, or 1040-NR is less than both credits. If the amount is zero, you cannot take either credit because there is no tax to reduce. But you may be able to take the ACTC if you are claiming the CTC (you cannot take the ACTC if you are only claiming the ODC). See Part II-A Addition- al Child Tax Credit for All Filers, later. 2. Your modified adjusted gross income (AGI) is more than the amount 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. TIP CAUTION ! -2-

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Specific Instructions Part I — Child Tax Credit and Credit for Other Dependents (All Filers) Line 4 Add the number of boxes checked under “child tax credit” in column (4) of the Dependents section on Form 1040 or 1040-SR and enter the result on line 4. You cannot check both the child tax credit box and the cred- it for other dependents box for the same person. Line 6 Add the number of boxes checked under “credit for other dependents” in column (4) of the Dependents section on Form 1040 or 1040-SR and enter the result on line 6. You cannot check both the child tax credit box and the cred- it for other dependents box for the same person. Line 13 Enter the amount from Credit Limit Worksheet A. When completing Credit Limit Worksheet A, you may be instruc- ted to complete Credit Limit Worksheet B if you meet certain condi- tions. Complete Credit Limit Worksheet B only if you meet all of the following. 1. You are claiming one or more of the following credits.

a. Mortgage interest credit, Form 8396.

b. Adoption credit, Form 8839.

c. Residential clean energy credit, Form 5695, Part I.

d. District of Columbia first-time homebuyer credit, Form 8859. 2. You are not filing Form 2555. 3. Line 4 of Schedule 8812 is more than zero. Part II-A—Additional Child Tax Credit for All Filers If the amount on line 12 is more than line 14, you may be able to take the additional child tax credit. Complete your Form 1040, 1040-SR, or 1040-NR through line 27 (also complete Schedule 3, line 11) before completing Part II-A. If you file Form 2555, you cannot claim the additional child tax credit. Bona Fide Residents of Puerto Rico In 2022, if you were a bona fide resident of Puerto Rico, you may be eligible to claim the ACTC if you had at least one qualifying child. You can claim the ACTC in Part II of Form 1040-SS, U.S. Self-Em- ployment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), instead of Form 1040 or CAUTION ! CAUTION ! TIP CAUTION ! 1040-SR and Schedule 8812 if you aren’t required to file Form 1040 or 1040-SR. To determine your ACTC on Schedule 8812, complete Part II-A and II-B as follows. On line 18a, include only earned income you re- ported on Form 1040 or 1040-SR. Don’t include income earned in Pu- erto Rico, which you exclude from U.S. tax as a bona fide resident of Puerto Rico. On line 21, include all your withheld social security, Medicare, and Additional Medicare taxes, including those taxes with- held by Puerto Rican employers that are shown on Puerto Rico Form(s) 499R-2/W-2PR. Generally, you were a bona fide resident of Puerto Rico if, during 2022, you: • Met the presence test, • Did not have a tax home outside of Puerto Rico, and • Did not have a closer connection to the United States or to a for- eign country than you have to Puerto Rico. For more information on bona fide resident status, see Pub. 570, Tax Guide for Individuals With Income From U.S. Possessions. Line 15 Check this box if you do not want to claim the additional child tax credit. If you check this box, skip Parts II-A and II-B. And enter -0- on line 27. Line 18a If you have net earnings from self-employment and you use either op- tional method to figure those net earnings, use the Earned Income Worksheet, later, to figure the amount to enter on line 18a; otherwise, all other taxpayers can use the Earned Income Chart, later, to figure the amount to enter on line 18a. Income excluded under a tax treaty is also excluded from the computation of earned income on line 18a. Line 18b Enter on line 18b the total amount of nontaxable combat pay that you (and your spouse if filing jointly) received in 2022. This amount will be reported either on line 1i of Form 1040, or 1040-SR, or should be shown in Form W-2, box 12, with code Q. Part II-B—Certain Filers Who Have Three or More Qualifying Children and Bona Fide Residents of Puerto Rico Line 21 If you are completing Part II-B and your employer withheld or you paid Additional Medicare Tax or tier 1 RRTA tax, use the Additional Medicare Tax and RRTA Tax Worksheet, later, to figure the amount to enter on line 21. Withheld social security, Medicare, and Additional Medi- care taxes should be shown on Form(s) W-2, boxes 4 and 6, and Puerto Rico Form(s) 499R-2/W-2PR, boxes 21 and 23. CAUTION ! TIP -3-

(i1040s8)(page-4)Page 4#

Credit Limit Worksheet A 1. 2. 1 2 Enter the amount from line 18 of your Form 1040, 1040-SR, or 1040-NR. Add the following amounts (if applicable) from: 4. If you are not completing Credit Limit Worksheet B, enter -0-; otherwise, enter the amount from Credit Limit Worksheet B. 4

Enter the total. + Schedule 3, line 6e . . . . . . . . . . Schedule 3, line 6f . . . . . . . . . . Schedule 3, line 6d . . . . . . . . . . + + + + + + Form 5695, line 30 . . . . . . . . . . + 3. Subtract line 2 from line 1. 3

5 5. Subtract line 4 from line 3. Enter here and on Schedule 8812, line 13. Schedule 3, line 1 . . . . . . . . . . . Schedule 3, line 2 . . . . . . . . . . . Schedule 3, line 3 . . . . . . . . . . . Schedule 3, line 4 . . . . . . . . . . . Complete Credit Limit Worksheet B only if you meet all of the following. 1. You are claiming one or more of the following credits. a. Mortgage interest credit, Form 8396. b. Adoption credit, Form 8839. c. Residential clean energy credit, Form 5695, Part I. d. District of Columbia ﬁrst-time homebuyer credit, Form 8859. 2. You are not ﬁling Form 2555. 3. Line 4 of Schedule 8812 is more than zero. + Schedule 3, line 6l . . . . . . . . . . -4-

(i1040s8)(page-5)Page 5#

Credit Limit Worksheet B Complete the Earned Income Worksheet, later, in these instructions. 6. 8. 7 If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use the Additional Medicare Tax and RRTA Tax Worksheet to ﬁgure the amount to enter; otherwise enter the following amounts. Enter the total of any amounts from— • Schedule 1, line 15; • Schedule 2, line 5; • Schedule 2, line 6; and • Schedule 2, line 13. 8 9. Add lines 7 and 8. Enter the total. 9 • Social security tax withheld from Form(s) W-2, box 4, and Puerto Rico Form(s) 499R-2/W-2PR, box 21, and • Medicare tax withheld from Form(s) W-2, box 6, and Puerto Rico Form(s) 499R-2/W-2PR, box 23. Use this worksheet only if you meet each of the items discussed under line 3 of Credit Limit Worksheet A, including that you are not ﬁling Form 2555. Before you begin: 3. 3 Enter your earned income from line 7 of the Earned Income Worksheet. No. Leave line 4 blank, enter -0- on line 5, and go to line 6. 4. Is the amount on line 3 more than $2,500? Yes. Subtract $2,500 from the amount on line 3. Enter the result. 5. Multiply the amount on line 4 by 15% (0.15) and enter the result. On line 2 of this worksheet, is the amount $4,500 or more? No. 4 5 If married ﬁling jointly, include your spouse’s amounts with yours when completing lines 7 and 8. Yes. If line 5 above is equal to or more than line 1 above, leave lines 7 through 10 blank, enter -0- on line 11, and go to line 12. Otherwise, go to line 7. 7. CAUTION If you are a bona ﬁde resident of Puerto Rico and line 5 above is less than line 1 above, go to line 7. Otherwise, leave lines 7 through 10 blank, enter -0- on line 11, and go to line 12. 1040 and 1040-SR ﬁlers. Complete line 27; Schedule 2, line 5; Schedule 2, line 6; and Schedule 3, line 11 of your return if they apply to you. 1040-NR ﬁlers. Complete Schedule 2, line 5; Schedule 2, line 6; and Schedule 3, line 11 of your return if they apply to you. 1. Enter the amount from Schedule 8812, line 12 . . . . . . . . . . . . 1 2. 2 TIP: The number of children you use for this line is the same as the number of children you used for line 4 of Schedule 8812. Number of qualifying children under 17 with the required social security number: × $1,500. Enter the result. -5-

(i1040s8)(page-6)Page 6#

Credit Limit Worksheet B—Continued 14. 14 Is the amount on line 13 of this worksheet more than the amount on line 1? 15. Enter the total of the amounts from— • Form 5695, line 15 15 Yes. Enter -0-. No. Subtract line 13 from line 1. Enter the result. Next, ﬁgure the amount of any of the following credits that you are claiming. • Residential clean energy credit, Form 5695, Part I. Then, go to line 15. 12. Enter the larger of line 5 or line 11. 12 • Mortgage interest credit, Form 8396. • Schedule 3, line 6c 11. Subtract line 10 from line 9. If the result is zero or less, enter -0-. 11

• District of Columbia ﬁrst-time homebuyer credit, Form 8859. • Schedule 3, line 6h, and • Adoption credit, Form 8839. • Schedule 3, line 6g 10. 1040 and 1040-SR ﬁlers. Enter the total of the amounts from Form 1040 or 1040-SR, line 27, and Schedule 3, line 11. 10 1040-NR ﬁlers. Enter the amount from Schedule 3, line 11. 13. Enter the smaller of line 2 or line 12. 13 Enter this amount on line 4 of Credit Limit Worksheet A. -6-

(i1040s8)(page-7)Page 7#

Earned Income Chart — Line 18a IF you... AND you... THEN enter on line 18a... have net earnings from self-employment use either optional method to figure those net earnings, the amount figured using the Earned Income Worksheet next (even if you are also taking the EIC). are taking the EIC on Form 1040 or 1040-SR, line 27, completed Worksheet B, relating to the EIC, in your Instructions for Form 1040, your earned income from Worksheet B (in your Instructions for Form 1040), line 4b, plus all of your nontaxable combat pay if you did not elect to include it in earned income for the EIC. If you were a member of the clergy, subtract (a) the rental value of a home or the nontaxable portion of an allowance for a home furnished to you (including payments for utilities), and (b) the value of meals and lodging provided to you, your spouse, and your dependents for your employer’s convenience. did not complete Worksheet B, relating to the EIC, in your Instructions for Form 1040, your earned income from Step 5 of the EIC instructions in your tax return instructions, plus all of your nontaxable combat pay if you did not elect to include it in earned income for the EIC. are not taking the EIC the amount figured using the Earned Income Worksheet next. -7-

(i1040s8)(page-8)Page 8#

Earned Income Worksheet Keep for Your Records Before you begin: Use this worksheet only if you were sent here from the Credit Limit Worksheet B, earlier, or the instructions for line 18a. Disregard community property laws when figuring the amounts to enter on this worksheet. If married filing jointly, include your spouse's amounts with yours when completing this worksheet. 1. a. Enter the amount from line 1z of Form 1040, 1040-SR, or 1040-NR . . . . . . . . . . . 1a.

b. Enter the amount of any nontaxable combat pay received. Also enter this amount on Schedule 8812, line 18b. This amount will be reported either on line 1i of Form 1040 or 1040-SR, or should be shown in Form(s) W-2, box 12, with code Q . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b.

Next, if you are filing Schedule C, F, or SE, or you received a Schedule K-1 (Form 1065), go to line 2a. Otherwise, skip lines 2a through 2e and go to line 3. 2. a. Enter any statutory employee income reported on line 1 of Schedule C . . . . . . . . . 2a.

b. Enter any net profit or (loss) from Schedule C, line 31, and Schedule K-1 (Form 1065), box 14, code A (other than farming). Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this line any statutory employee income or any other amounts exempt from self-employment tax. Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b.

c. Enter any net farm profit or (loss) from Schedule F, line 34, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A*. Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this line any amounts exempt from self-employment tax . . . . . . . . . . . . . . . . . . . . . . 2c.

d. If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, line 15. Otherwise, skip this line and enter on line 2e the amount from line 2c . . . . . . . . . . . . . . . . . . . . . . . . 2d. e. If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the (loss) from line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e.

3. Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this worksheet. Instead, enter -0- on line 3 of Credit Limit Worksheet B or line 18a of Schedule 8812, whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the Medicaid waiver payment amounts excluded from income on Schedule 1 (Form 1040), line 8s, unless you choose to include these amounts in earned income. See the instructions for Schedule 1, line 8s. If you and your spouse both received Medicaid waiver payments during the year, you and your spouse can make different choices about including the full amount of your payments in earned income. Enter only the amount of the Medicaid waiver payments that you or your spouse, if filing a joint return, do not want to include in earned income. To include all nontaxable Medicaid waiver payment amounts in earned income, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter the amount from Schedule 1 (Form 1040), line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Add lines 4 and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Subtract line 6 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

• If you were sent here from Credit Limit Worksheet B, enter this amount on line 3 of that worksheet. • If you were sent here from the instructions for line 18a, enter this amount on line 18a of Schedule 8812. *If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE. Put your name and social security number on Schedule SE and attach it to your return. -8-

(i1040s8)(page-9)Page 9#

Additional Medicare Tax and RRTA Tax Worksheet Keep for Your Records If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use this worksheet to figure the amount to enter on line 21 of Schedule 8812 and line 7 of Credit Limit Worksheet B. Social security tax, Medicare tax, and Additional Medicare Tax on Wages. 1. Enter the social security tax withheld (Form(s) W-2, box 4, and Puerto Rico Form(s) 499R-2/W-2PR, box 21) . . . . . . . . . . . . . . . . . . . 1.

2. Enter the Medicare tax withheld (Form(s) W-2, box 6, and Puerto Rico Form(s) 499R-2/W-2PR, box 23). These boxes include any Additional Medicare Tax withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter any amount from Form 8959, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter the Additional Medicare Tax withheld (Form 8959, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

Additional Medicare Tax on Self-Employment Income. 7. Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13) . . . . . . . . . . . . . . . 7.

Tier 1 RRTA taxes as an employee of a railroad (enter amounts on lines 8, 9, 10, and 11) or employee representative (enter amounts on lines 12, 13, 14, and 15). Do not include amounts in Form W-2, box 14, that are identified as Additional Medicare Tax or Tier 2 tax. Do not include amounts shown on Form CT-2 on line 3 for Additional Medicare Tax or line 4 for Tier 2 tax. 8. Enter the Tier 1 tax (Form(s) W-2, box 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Enter the Medicare tax (Form(s) W-2, box 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Enter the Additional Medicare Tax, if any, on RRTA compensation as an employee (Form 8959, line 17). Do not use the same amount from Form 8959, line 17, for both this line 10 and line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Add lines 8, 9, and 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Enter one-half of Tier 1 tax (one-half of Forms CT-2, line 1, for all 4 quarters of 2022) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Enter one-half of Tier 1 Medicare tax (one-half of Forms CT-2, line 2, for all 4 quarters of 2022) . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Enter one-half of the Additional Medicare Tax, if any, on RRTA compensation as an employee representative (one-half of Form 8959, line 17). Do not use the same amount from Form 8959, line 17, for both this line 14 and line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Add lines 12, 13, and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

Line 21 Amount. 16. Add lines 6, 7, 11, and 15. Enter here and on line 21 of Schedule 8812 and, if applicable, line 7 of Credit Limit Worksheet B . . . . . . . . . . 16.

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(i1040sca-line-5a-general-sales-taxes)2022 Instructions for Schedule A (Form 1040), line 5a: state and local income or general sales taxes, including the State and Local General Sales Tax Deduction Worksheet and its instructions#

(i1040sca-line-5a-general-sales-taxes)(document-1)#

Line 5a You can elect to deduct state and local general sales taxes instead of state and local in- come taxes. You can't deduct both. State and Local Income Taxes If you don't elect to deduct general sales taxes, include on line 5a the state and lo- cal income taxes listed next. • State and local income taxes with- held from your salary during 2022. Your Form(s) W-2 will show these amounts. Forms W-2G, 1099-G, 1099-R, 1099-MISC, and 1099-NEC may also show state and local income taxes with- held; however, don't include on line 5a any withheld taxes you deducted on oth- er forms, such as Schedule C, E or F. • State and local income taxes paid in 2022 for a prior year, such as taxes paid with your 2021 state or local in- come tax return. Don't include penalties or interest. • State and local estimated tax pay- ments made during 2022, including any part of a prior year refund that you chose to have credited to your 2022 state or lo- cal income taxes. • Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Bene- fit Fund, Rhode Island Temporary Disa- bility Benefit Fund, or Washington State Supplemental Workmen's Compensation Fund. • Mandatory contributions to the Alaska, California, New Jersey, or Penn- sylvania state unemployment fund. • Mandatory contributions to state family leave programs, such as the New Jersey Family Leave Insurance (FLI) program and the California Paid Family Leave program. Don't reduce your deduction by any: • State or local income tax refund or credit you expect to receive for 2022, or • Refund of, or credit for, prior year state and local income taxes you actually received in 2022. Instead, see the in- TIP CAUTION ! A-3

structions for Schedule 1 (Form 1040), line 1. State and Local General Sales Taxes If you elect to deduct state and local general sales taxes instead of income taxes, you must check the box on line 5a. To figure your state and local general sales tax deduction, you can use either your actual expenses or the op- tional sales tax tables. Actual Expenses Generally, you can deduct the actual state and local general sales taxes (in- cluding compensating use taxes) you paid in 2022 if the tax rate was the same as the general sales tax rate. Food, clothing, and medical supplies. Sales taxes on food, clothing, and medi- cal supplies 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 vehicles are deductible as a general sales tax even if the tax rate was different than the general sales tax rate. However, if you paid sales tax on a motor 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 gen- eral sales tax rate on that vehicle. In- clude any state and local general sales taxes paid for a leased motor vehicle. Motor vehicles include cars, motor- cycles, motor homes, recreational vehi- cles, sport utility vehicles, trucks, vans, and off-road vehicles. You must keep your actual re- ceipts showing general sales taxes paid to use this method. Trade or business items. Don't include sales taxes paid on items used in your trade or business. Instead, go to the in- structions for the form you are using to report business income and expenses to see if you can deduct these taxes. Refund of general sales taxes. If you received a refund of state or local gener- al sales taxes in 2022 for amounts paid in 2022, reduce your actual 2022 state and local general sales taxes by this amount. If you received a refund of state or local general sales taxes in 2022 for prior year purchases, don't reduce your 2022 state and local general sales taxes CAUTION ! by this amount. However, if you deduc- ted your actual state and local general sales taxes in the earlier year and the de- duction reduced your tax, you may have to include the refund in income on Schedule 1 (Form 1040), line 8z. See Recoveries in Pub. 525 for details. Optional Sales Tax Tables Instead of using your actual expenses, you can use the 2022 Optional State Sales Tax Table and the 2022 Optional Local Sales Tax Tables at the end of these instructions to figure your state and local general sales tax deduction. You may also be able to add the state and local general sales taxes paid on cer- tain specified items. To figure your state and local general sales tax deduction using the tables, complete the State and Local General Sales Tax Deduction Worksheet or use the Sales Tax Deduction Calculator at IRS.gov/SalesTax. If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you al- so must use the tables to figure your state and local general sales tax deduc- tion. Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. If you lived in the same state for all of 2022, enter the applicable amount, based on your 2022 income and family size, from the 2022 Optional State Sales Tax Table for your state. Read down the “At least–But less than” columns for your state and find the line that includes your 2022 income. If mar- ried filing separately, don't include your spouse's income. Note. The family size column refers to the number of dependents listed on page 1 of Form 1040 or Form 1040-SR

(and any continuation sheets) plus you and, if you are filing a joint return, your spouse. If you are married and not filing a joint return, you can include your spouse in family size only in certain cir- cumstances, which are described in Pub. 501. CAUTION ! Income. Your 2022 income is the amount shown on your Form 1040 or 1040-SR, line 11, plus any nontaxable items, such as the following. • Tax-exempt interest. • Veterans' benefits. • Nontaxable combat pay. • Workers' compensation. • Nontaxable part of social security and railroad retirement benefits. • Nontaxable part of IRA, pension, or annuity distributions. Don't include rollovers. • Public assistance payments. What if you lived in more than one state? If you lived in more than one state during 2022, use the following steps to figure the amount to put on line 1 of the worksheet. 1. Look up the table amount for each state using the rules stated earlier. (If there is no table for a state, the table amount for that state is considered to be zero.) 2. Multiply the table amount of each state by a fraction, the numerator of which is the number of days you lived in the state during 2022 and the denomina- tor of which is the total number of days in the year (365). 3. If you also lived in a locality dur- ing 2022 that imposed a local general sales tax, complete a separate worksheet for each state you lived in using the pro- rated amount from step (2) for that state on line 1 of its worksheet. Otherwise, combine the prorated table amounts from step (2) and enter the total on line 1 of a single worksheet. Example. You lived in State A from January 1 through August 31, 2022 (243 days), and in State B from September 1 through December 31, 2022 (122 days). The table amount for State A is $500. The table amount for State B is $400. You would figure your state general sales tax as follows. State A: $500 x 243/365 = $333 State B: $400 x 122/365 = 134 Total = $467 If none of the localities in which you lived during 2022 imposed a local gen- eral sales tax, enter $467 on line 1 of your worksheet. Otherwise, complete a separate worksheet for State A and State A-4

State and Local General Sales Tax Deduction Worksheet—Line 5a Keep for Your Records TIP Instead of using this worksheet, you can find your deduction by using the Sales Tax Deduction Calculator at IRS.gov/SalesTax. See the instructions for line 1 of the worksheet if you: Lived in more than one state during 2022, or Had any nontaxable income in 2022. Before you begin: 1. Enter your state general sales taxes from the 2022 Optional State Sales Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Next. If, for all of 2022, you lived only in Connecticut, the District of Columbia, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, or Rhode Island, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Otherwise, go to line 2. 2. Did you live in Alaska, Arizona, Arkansas, Colorado, Georgia, Illinois, Louisiana, Mississippi, Missouri, New York, North Carolina, South Carolina, Tennessee, Utah, or Virginia in 2022? No. Enter -0-. . . . . . . . . . . . . . . 2. Yes. Enter your base local general sales taxes from the 2022 Optional Local Sales Tax Tables. 3. Did your locality impose a local general sales tax in 2022? Residents of California and Nevada, see the instructions for line 3 of the worksheet. No. Skip lines 3 through 5, enter -0- on line 6, and go to line 7. Yes. Enter your local general sales tax rate, but omit the percentage sign. For example, if your local general sales tax rate was 2.5%, enter 2.5. If your local general sales tax rate changed or you lived in more than one locality in the same state during 2022, see the instructions for line 3 of the worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 4. Did you enter -0- on line 2? No. Skip lines 4 and 5 and go to line 6. Yes. Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. For example, if your state general sales tax rate is 6%, enter 6.0 . . . . . . . . . . . . . . . . 4. . 5. Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) . . . . . . . . . . . . . . . . 5. . 6. Did you enter -0- on line 2? No. Multiply line 2 by line 3. . . . . . . . . . . . . . . . . . . . . 6. Yes. Multiply line 1 by line 5. If you lived in more than one locality in the same state during 2022, see the instructions for line 6 of the worksheet. 7. Enter your state and local general sales taxes paid on specified items, if any. See the instructions for line 7 of the worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Deduction for general sales taxes. Add lines 1, 6, and 7. Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5a. Be sure to check the box on that line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. A-5

B. Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Line 2. If you checked the “No” box, enter -0- on line 2, and go to line 3. If you checked the “Yes” box and lived in the same locality for all of 2022, enter the applicable amount, based on your 2022 income and family size, from the 2022 Optional Local Sales Tax Tables for your locality. Read down the “At least–But less than” columns for your locality and find the line that includes your 2022 income. See the instructions for line 1 of the worksheet to figure your 2022 income. The family size column refers to the number of dependents listed on page 1 of Form 1040 or Form 1040-SR (and any continuation sheets) plus you and, if you are filing a joint re- turn, your spouse. If you are married and not filing a joint return, you can include your spouse in family size only in cer- tain circumstances, which are described in Pub. 501. What if you lived in more than one locality? If you lived in more than one locality during 2022, look up the table amount for each locality using the rules stated earlier. If there is no table for your locality, the table amount is consid- ered to be zero. Multiply the table amount for each locality you lived in by a fraction. The numerator of the fraction is the number of days you lived in the locality during 2022 and the denomina- tor is the total number of days in the year (365). If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prora- ted table amounts for each locality in that state on line 2. Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prora- ted table amount on line 2 of the appli- cable worksheet. Example. You lived in Locality 1 from January 1 through August 31, 2022

(243 days), and in Locality 2 from Sep- tember 1 through December 31, 2022

(122 days). The table amount for Locali- ty 1 is $100. The table amount for Lo- cality 2 is $150. You would figure the amount to enter on line 2 as follows. Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Locality 1: $100 x 243/365 = $ 67 Locality 2: $150 x 122/365 = 50 Total = $117 Line 3. If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7.2500%. Otherwise, check the “Yes” box and in- clude on line 3 only the part of the com- bined rate that is more than 7.2500%. If you lived in Nevada, check the “No” box if your combined state and lo- cal general sales tax rate is 6.8500%. Otherwise, check the “Yes” box and in- clude on line 3 only the part of the com- bined rate that is more than 6.8500%. What if your local general sales tax rate changed during 2022? If you checked the “Yes” box and your local general sales tax rate changed during 2022, figure the rate to enter on line 3 as follows. Multiply each tax rate for the period it was in effect by a fraction. The numerator of the fraction is the number of days the rate was in effect during 2022 and the denominator is the total number of days in the year (365). Enter the total of the prorated tax rates on line 3. Example. Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2022 (273 days). The rate increased to 1.75% for the peri- od from October 1 through December 31, 2022 (92 days). You would enter “1.189” on line 3, figured as follows. January 1 – September 30: 1.00 x 273/365 = 0.748 October 1 – December 31: 1.75 x 92/365 = 0.441 Total = 1.189 What if you lived in more than one locality in the same state during 2022? Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one local- ity in the same state during 2022 and each locality didn't have the same local general sales tax rate. To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the 2022 Optional Local Sales Tax Tables to figure your local general sales tax deduction), multiply the local general sales tax rate by a frac- tion. The numerator of the fraction is the number of days you lived in the locality during 2022 and the denominator is the total number of days in the year (365). Example. You lived in Locality 1 from January 1 through August 31, 2022

(243 days), and in Locality 2 from Sep- tember 1 through December 31, 2022

(122 days). The local general sales tax rate for Locality 1 is 1%. The rate for Locality 2 is 1.75%. You would enter “0.666” on line 3 for the Locality 1 worksheet and “0.585” for the Locality 2 worksheet, figured as follows. Locality 1: 1.00 x 243/365 = 0.666 Locality 2: 1.75 x 122/365 = 0.585 Line 6. If you lived in more than one locality in the same state during 2022, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2022. If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Line 7. Enter on line 7 any state and lo- cal general sales taxes paid on the fol- lowing specified items. If you are com- pleting more than one worksheet, include the total for line 7 on only one of the worksheets. 1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Also include any state and local general sales taxes paid for a leased motor vehicle. If the state sales tax rate on these items is higher than the general sales tax rate, only in- clude the amount of tax you would have paid at the general sales tax rate. 2. An aircraft or boat, but only if the tax rate was the same as the general sales tax rate. 3. A home (including a mobile home or prefabricated home) or substan- tial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. A-6

a. Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial ad- dition or major renovation. b. You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. c. Under your state law, your con- tractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. The contract must state that the contractor is authorized to act in your name and must follow your direc- tions on construction decisions. In this case, you will be considered to have pur- chased any items subject to a sales tax and to have paid the sales tax directly. Don't include sales taxes paid on items used in your trade or business. If you received a refund of state or local general sales taxes in 2022, see Refund of general sales taxes, earlier.

(i1040sca-optional-local-sales-tax-table-selector)2022 Which Optional Local Sales Tax Table Should I Use? (Instructions for Schedule A (Form 1040))#

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Which Optional Local Sales Tax Table Should I Use? IF you live in the state of… AND you live in… THEN use Local Table… Alaska Juneau, Kenai, Ketchikan, Kodiak, Sitka, Wasilla or any locality that imposes a local sales tax C Arizona Tempe C Chandler, Gilbert, Glendale, Mesa, Peoria, Phoenix, Scottsdale, Tucson, Yuma or any other locality that imposes a local sales tax B Arkansas Any Locality that imposes a local sales tax C Colorado Adams County, Boulder County, Centennial, Colorado Springs, Denver City, El Paso County, Larimer County, Pueblo City, Pueblo County or any other locality that imposes a local sales tax A Arapahoe County, Arvada, Aurora, Boulder, Fort Collins, Greeley, Jefferson County, Lakewood, Longmont, Thornton or Westminster B Georgia Dekalb County (excluding Atlanta) B Any other locality that imposes a local sales tax C Illinois Arlington Heights, Bloomington, Champaign, Chicago, Cicero, Decatur, Evanston, Palatine, Peoria, Schaumburg, Skokie, Springfield or any other locality that imposes a local sales tax A Aurora, Elgin, Joliet, Waukegan B Louisiana East Baton Rouge Parish B Ascension Parish, Bossier Parish, Caddo Parish, Calcasieu Parish, Iberia Parish, Jefferson Parish, Lafayette Parish, Lafourche Parish, Livingston Parish, Orleans Parish, Ouachita Parish, Rapides Parish, St. Bernard Parish, St. Landry Parish, St. Tammany Parish, Tangipahoa Parish, Terrebonne Parish or any other locality that imposes a local sales tax C Mississippi City of Jackson only A City of Tupelo only C Missouri Any locality that imposes a local sales tax C New York Counties: Chautauqua, Chenango, Columbia, Delaware, Dutchess, Greene, Hamilton, Tioga Cities: New York, Norwich (Chenango County) A Counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chemung, Clinton, Cortland, Erie, Essex, Franklin, Fulton, Genesee, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Nassau, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, Suffolk, Sullivan, Tompkins, Ulster, Warren, Washington, Wayne, Westchester, Wyoming or Yates Cities: Auburn, Glens Falls, Gloversville, Ithaca, Johnstown, Mount Vernon, New Rochelle, Ogdensburg, Olean, Oneida (Madison County), Oswego, Rome, Salamanca, Saratoga Springs, Utica, White Plains, Yonkers B Any other locality that imposes a local sales tax D* North Carolina Any locality that imposes a local sales tax B South Carolina Aiken County, Anderson County, Greenwood County, Horry County, Lexington County, Myrtle Beach, Newberry County, Orangeburg County, Spartanburg County and York County A Allendale County, Bamberg County, Barnwell County, Calhoun County, Charleston County, Cherokee County, Chester County, Chesterfield County, Colleton County, Darlington County, Dillon County, Edgefield County, Florence County, Jasper County, Kershaw County, Lancaster County, Laurens County, Lee County, Marion County, Marlboro County, McCormick County, Saluda County, Sumter County and Williamsburg County B Abbeville County, Berkeley County, Clarendon County, Dorchester County, Fairfield County, Hampton County, Pickens County, Richland County, Union County or any other locality that imposes a local sales tax C Tennessee Any locality that imposes a local sales tax C Utah Any locality that imposes a local sales tax A Virginia Any locality that imposes a local sales tax C * Note: Local Table D is just 25% of the NY State table.

(i1040sca-optional-local-sales-tax-tables)2022 Optional Local Sales Tax Tables (Instructions for Schedule A (Form 1040))#

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2022 Optional Local Sales Tax Tables Income Family Size Family Size Family Size Family Size Over Over Over Over 1 2 3 4 5 5 1 2 3 4 5 5 1 2 3 4 5 5 1 2 3 4 5 5 But less At least than Local Table A Local Table B Local Table C Local Table D $0 $20,000 54 61 66 70 73 78 63 74 81 86 91 98 79 94 104 112 118 127 55 61 65 68 70 74 20,000 30,000 76 87 94 99 103 110 88 103 113 121 127 136 110 130 144 155 164 176 80 89 94 98 102 107 30,000 40,000 87 99 107 114 119 126 100 117 129 138 145 155 125 148 164 176 186 200 92 102 109 114 118 123 40,000 50,000 96 110 119 126 131 139 111 130 142 152 160 171 138 163 180 194 205 220 103 114 121 127 131 137 50,000 60,000 104 119 129 136 142 151 120 140 154 165 173 186 149 176 195 209 221 238 112 125 133 139 143 150 60,000 70,000 112 128 138 146 152 161 128 150 164 176 185 198 158 188 207 223 235 253 120 134 142 149 154 161 70,000 80,000 118 135 146 155 161 171 135 158 174 186 195 209 167 198 219 235 248 267 128 142 151 158 164 171 80,000 90,000 124 142 154 163 170 180 142 166 182 195 205 220 175 208 229 246 260 280 135 150 160 167 173 181 90,000 100,000 130 149 161 170 178 188 148 174 190 203 214 229 183 216 239 257 271 292 142 157 168 175 181 190 100,000 120,000 138 157 170 180 188 199 157 183 201 215 226 242 193 228 252 271 286 308 150 167 178 186 192 201 120,000 140,000 147 168 182 192 201 213 167 196 215 229 241 258 205 243 269 288 305 328 161 180 191 200 207 216 140,000 160,000 156 178 193 204 213 226 177 207 227 243 255 273 217 257 284 305 322 346 172 191 204 213 220 230 160,000 180,000 164 187 203 214 224 237 186 217 238 255 268 287 227 269 297 319 337 363 181 202 215 225 232 243 180,000 200,000 172 196 212 224 234 248 194 227 249 266 280 300 237 281 310 333 352 378 190 212 225 236 244 255 200,000 225,000 179 205 222 235 245 259 203 237 260 278 292 313 247 293 323 347 367 395 199 222 236 247 256 268 225,000 250,000 188 215 232 245 256 271 212 248 272 290 305 327 258 305 337 362 383 412 209 233 248 259 268 281 250,000 275,000 196 223 242 255 267 283 220 257 282 302 318 340 268 317 350 376 397 427 219 243 259 271 280 293 275,000 300,000 203 232 251 265 277 293 228 267 293 313 329 352 278 328 363 389 411 442 227 253 269 282 291 305 300,000 or more 245 280 303 321 335 354 274 321 352 376 395 423 332 393 434 465 492 529 278 310 330 345 357 374 A-17

(i1040sca-optional-state-sales-tax-tables)2022 Optional State Sales Tax Tables (Instructions for Schedule A (Form 1040))#

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2022 Optional State Sales Tax Tables Income Family Size Family Size Family Size But At less Over Over Over least than 1 2 3 4 5 5 1 2 3 4 5 5 1 2 3 4 5 5 Alabama 1 4.0000% Arizona 2 5.6000% Arkansas 2 6.5000% $0 $20,000 310 372 415 448 476 515 321 367 397 419 438 464 385 440 476 504 526 557 $20,000 $30,000 422 507 564 609 647 700 457 522 565 597 624 661 555 634 686 726 758 803 $30,000 $40,000 477 572 637 688 730 790 525 600 649 687 717 759 640 732 793 838 876 927 $40,000 $50,000 523 627 698 753 800 865 583 666 721 762 796 843 713 816 883 934 975 1033 $50,000 $60,000 563 674 751 810 860 930 634 724 783 829 865 916 777 889 962 1018 1063 1125 $60,000 $70,000 598 716 797 860 913 988 679 776 839 888 927 982 834 955 1033 1093 1141 1208 $70,000 $80,000 630 754 839 906 961 1039 720 823 890 941 983 1041 887 1014 1098 1161 1213 1284 $80,000 $90,000 659 789 878 947 1005 1087 758 866 937 991 1035 1096 935 1070 1158 1224 1279 1354 $90,000 $100,000 686 821 913 986 1046 1131 794 907 981 1037 1083 1147 980 1121 1213 1283 1341 1420 $100,000 $120,000 721 863 960 1036 1099 1189 840 960 1039 1098 1147 1215 1040 1189 1287 1362 1422 1506 $120,000 $140,000 767 917 1020 1100 1168 1262 900 1029 1113 1177 1229 1301 1116 1277 1382 1462 1528 1618 $140,000 $160,000 808 966 1075 1159 1230 1330 956 1092 1181 1249 1305 1381 1187 1358 1470 1555 1625 1720 $160,000 $180,000 846 1011 1124 1213 1286 1391 1006 1150 1244 1315 1374 1454 1252 1433 1551 1640 1713 1815 $180,000 $200,000 880 1053 1170 1262 1339 1447 1054 1204 1302 1377 1438 1523 1313 1502 1626 1720 1797 1903 $200,000 $225,000 916 1096 1218 1313 1393 1506 1103 1260 1363 1441 1505 1594 1376 1574 1704 1803 1883 1994 $225,000 $250,000 954 1141 1268 1367 1450 1568 1155 1319 1427 1509 1576 1669 1443 1651 1787 1891 1975 2092 $250,000 $275,000 990 1183 1315 1418 1504 1625 1203 1375 1487 1573 1643 1739 1506 1723 1865 1973 2061 2183 $275,000 $300,000 1023 1223 1359 1465 1554 1679 1249 1428 1544 1633 1706 1806 1565 1791 1939 2051 2143 2270 $300,000 or more 1215 1450 1611 1736 1841 1989 1517 1734 1875 1983 2071 2193 1913 2189 2370 2507 2619 2774 Income California 3 7.2500% Colorado 2 2.9000% Connecticut 4 6.3500% $0 $20,000 402 459 496 524 547 578 163 187 202 214 224 237 318 355 379 397 411 431 $20,000 $30,000 565 645 697 736 768 813 231 264 286 303 317 336 446 498 532 557 577 605 $30,000 $40,000 647 738 797 842 878 929 265 303 329 348 364 386 509 569 607 636 659 691 $40,000 $50,000 715 815 881 930 971 1027 293 336 364 386 403 428 563 629 671 703 729 764 $50,000 $60,000 775 884 954 1008 1052 1113 319 365 396 419 438 464 610 681 727 761 789 827 $60,000 $70,000 828 944 1020 1077 1124 1189 341 391 423 448 469 497 651 728 777 813 843 883 $70,000 $80,000 877 999 1079 1140 1190 1258 361 414 449 475 497 526 689 770 822 860 892 935 $80,000 $90,000 921 1050 1134 1198 1250 1322 380 436 472 500 522 554 724 809 863 904 937 982 $90,000 $100,000 963 1097 1185 1252 1306 1381 398 456 494 523 546 579 756 845 902 944 979 1026 $100,000 $120,000 1017 1159 1252 1322 1380 1460 421 482 522 553 578 613 799 892 952 997 1034 1083 $120,000 $140,000 1087 1239 1338 1413 1475 1560 451 516 559 592 619 656 853 953 1017 1066 1104 1157 $140,000 $160,000 1151 1312 1417 1497 1562 1652 478 547 593 628 656 696 903 1009 1077 1128 1169 1225 $160,000 $180,000 1210 1379 1489 1573 1641 1736 503 576 624 661 691 732 949 1060 1132 1185 1228 1287 $180,000 $200,000 1265 1441 1557 1644 1716 1814 526 603 653 691 723 766 992 1108 1183 1239 1284 1345 $200,000 $225,000 1322 1506 1626 1718 1792 1895 550 630 683 723 756 801 1036 1158 1235 1294 1341 1405 $225,000 $250,000 1382 1574 1700 1795 1874 1981 576 660 715 757 791 838 1083 1210 1291 1352 1401 1469 $250,000 $275,000 1438 1638 1769 1868 1949 2062 600 687 744 788 824 873 1126 1259 1343 1406 1458 1528 $275,000 $300,000 1491 1699 1834 1937 2021 2138 622 713 773 818 855 906 1168 1305 1392 1458 1511 1584 $300,000 or more 1798 2048 2211 2335 2437 2577 754 864 936 990 1035 1097 1406 1571 1677 1756 1820 1907 Income District of Columbia 4 6.0000% Florida 1 6.0000% Georgia 2 4.0000% $0 $20,000 306 343 367 385 399 419 345 392 423 446 465 491 227 259 280 296 309 327 $20,000 $30,000 426 477 510 534 554 582 494 561 605 639 666 704 323 368 398 421 439 464 $30,000 $40,000 485 543 580 608 631 662 569 647 698 736 768 811 371 423 457 483 504 533 $40,000 $50,000 535 599 640 670 695 730 632 719 776 818 853 902 411 469 507 536 559 591 $50,000 $60,000 578 647 691 724 751 788 688 783 844 891 929 982 447 509 551 582 607 642 $60,000 $70,000 616 690 737 772 801 840 738 839 905 955 996 1053 478 545 589 623 650 688 $70,000 $80,000 651 729 778 816 846 888 783 891 961 1014 1058 1118 507 578 625 660 689 729 $80,000 $90,000 683 764 817 856 888 931 825 939 1013 1069 1115 1178 533 609 658 695 725 767 $90,000 $100,000 712 797 852 893 926 972 864 983 1061 1120 1167 1234 558 637 688 727 759 803 $100,000 $120,000 751 841 899 942 977 1025 916 1042 1124 1187 1237 1307 591 674 728 770 803 850 $120,000 $140,000 801 897 958 1004 1042 1093 982 1118 1206 1273 1327 1403 633 722 780 824 860 910 $140,000 $160,000 847 948 1013 1062 1101 1155 1044 1188 1281 1352 1410 1490 671 766 827 874 913 966 $160,000 $180,000 889 995 1063 1114 1155 1212 1100 1251 1350 1425 1486 1570 706 806 871 920 960 1016 $180,000 $200,000 928 1038 1109 1163 1206 1265 1152 1311 1415 1493 1557 1646 739 844 911 963 1005 1064 $200,000 $225,000 968 1083 1157 1213 1258 1319 1207 1373 1482 1564 1631 1723 774 882 953 1008 1052 1113 $225,000 $250,000 1010 1131 1208 1266 1313 1377 1265 1439 1553 1639 1709 1806 810 924 998 1055 1101 1165 $250,000 $275,000 1050 1175 1255 1316 1364 1431 1319 1501 1619 1709 1782 1884 844 962 1040 1099 1147 1213 $275,000 $300,000 1088 1217 1300 1363 1413 1482 1370 1559 1682 1776 1852 1957 876 999 1079 1141 1191 1260 $300,000 or more 1304 1459 1558 1633 1693 1776 1669 1899 2049 2163 2256 2384 1062 1211 1309 1383 1443 1527 Income Hawaii 1,6 4.0000% Idaho 1 6.0000% Illinois 2 6.2500% $0 $20,000 349 406 443 472 495 528 466 555 615 662 701 756 330 382 418 445 467 498 $20,000 $30,000 497 578 631 672 706 753 644 766 849 914 968 1044 467 541 591 629 660 704 $30,000 $40,000 572 665 726 773 812 865 731 870 964 1038 1099 1185 535 620 677 721 757 807 $40,000 $50,000 635 738 806 858 901 960 805 957 1061 1141 1208 1303 593 687 750 798 838 894 $50,000 $60,000 690 802 876 933 979 1044 868 1033 1145 1232 1304 1406 643 746 814 866 909 970 $60,000 $70,000 739 859 938 999 1049 1119 925 1100 1219 1311 1388 1497 688 798 870 927 973 1037 $70,000 $80,000 784 911 995 1060 1113 1187 976 1161 1286 1384 1465 1579 730 845 922 982 1030 1099 $80,000 $90,000 825 959 1048 1116 1172 1249 1023 1217 1348 1450 1535 1655 767 889 970 1032 1084 1155 $90,000 $100,000 864 1004 1097 1168 1226 1308 1067 1269 1405 1512 1600 1725 803 930 1014 1079 1133 1208 $100,000 $120,000 915 1063 1162 1237 1299 1385 1125 1337 1481 1593 1686 1817 849 983 1073 1142 1198 1277 $120,000 $140,000 980 1140 1245 1325 1392 1484 1198 1424 1577 1696 1796 1935 909 1052 1148 1222 1282 1367 $140,000 $160,000 1041 1210 1321 1407 1477 1575 1266 1504 1665 1791 1896 2043 963 1116 1217 1295 1359 1449 $160,000 $180,000 1096 1274 1391 1481 1556 1659 1327 1577 1746 1878 1987 2141 1014 1174 1280 1362 1430 1524 $180,000 $200,000 1147 1334 1457 1551 1629 1737 1384 1644 1821 1958 2072 2233 1060 1228 1339 1425 1496 1594 $200,000 $225,000 1201 1396 1525 1623 1705 1817 1443 1714 1898 2041 2160 2328 1109 1284 1400 1490 1564 1667 $225,000 $250,000 1257 1462 1597 1700 1785 1903 1505 1788 1980 2129 2253 2427 1160 1343 1465 1559 1636 1744 $250,000 $275,000 1310 1523 1664 1772 1860 1984 1563 1857 2056 2211 2339 2521 1209 1399 1526 1623 1703 1815 $275,000 $300,000 1361 1582 1728 1840 1932 2060 1618 1922 2128 2288 2421 2609 1254 1452 1583 1684 1767 1884 $300,000 or more 1653 1921 2099 2235 2346 2502 1934 2296 2541 2732 2891 3114 1518 1757 1915 2037 2138 2278 A-13

Income Family Size Family Size Family Size But At less Over Over Over least than 1 2 3 4 5 5 1 2 3 4 5 5 1 2 3 4 5 5 Indiana 4 7.0000% Iowa 1 6.0000% Kansas 1 6.5000% $0 $20,000 398 457 496 525 550 583 368 419 453 478 499 528 506 609 680 735 781 847 $20,000 $30,000 565 649 703 745 780 827 524 598 646 682 712 752 695 836 932 1007 1071 1160 $30,000 $40,000 648 744 807 855 895 949 603 687 742 784 818 865 787 946 1055 1141 1212 1313 $40,000 $50,000 719 825 895 948 992 1052 669 763 824 870 908 960 864 1039 1158 1252 1330 1440 $50,000 $60,000 780 896 972 1030 1077 1142 727 830 896 946 987 1044 931 1119 1248 1348 1432 1551 $60,000 $70,000 835 959 1040 1102 1153 1223 779 889 960 1014 1058 1119 990 1190 1327 1434 1523 1649 $70,000 $80,000 885 1017 1103 1168 1222 1296 827 943 1018 1076 1122 1187 1044 1254 1398 1511 1605 1738 $80,000 $90,000 932 1070 1160 1229 1285 1364 870 993 1072 1132 1182 1250 1093 1313 1464 1582 1680 1819 $90,000 $100,000 974 1119 1213 1286 1345 1426 911 1039 1122 1185 1237 1308 1139 1368 1525 1647 1750 1895 $100,000 $120,000 1031 1184 1284 1360 1423 1509 965 1100 1188 1255 1310 1385 1199 1440 1604 1734 1841 1993 $120,000 $140,000 1104 1267 1375 1456 1523 1616 1034 1179 1273 1345 1404 1484 1275 1532 1707 1844 1958 2120 $140,000 $160,000 1171 1344 1458 1545 1616 1714 1097 1252 1352 1428 1490 1576 1345 1615 1800 1944 2065 2235 $160,000 $180,000 1232 1415 1534 1625 1700 1803 1155 1318 1423 1504 1569 1659 1409 1692 1885 2036 2162 2340 $180,000 $200,000 1289 1480 1605 1701 1779 1887 1210 1380 1491 1575 1643 1738 1468 1763 1964 2121 2253 2438 $200,000 $225,000 1348 1548 1679 1779 1861 1974 1266 1444 1560 1648 1720 1818 1529 1836 2045 2209 2346 2539 $225,000 $250,000 1411 1620 1757 1862 1947 2066 1326 1512 1634 1726 1801 1904 1594 1913 2131 2302 2444 2645 $250,000 $275,000 1470 1688 1831 1939 2028 2152 1382 1576 1703 1799 1877 1985 1654 1985 2211 2388 2536 2745 $275,000 $300,000 1526 1752 1900 2013 2105 2233 1435 1637 1768 1868 1949 2061 1711 2053 2287 2470 2622 2838 $300,000 or more 1848 2122 2302 2438 2550 2705 1743 1988 2148 2269 2368 2504 2037 2443 2720 2937 3118 3374 Income Kentucky 4 6.0000% Louisiana 2 4.4500% Maine 4 5.5000% $0 $20,000 355 401 431 454 473 498 258 291 313 329 343 361 273 313 339 359 376 399 $20,000 $30,000 512 579 623 655 682 719 370 418 449 473 492 518 376 431 468 495 518 549 $30,000 $40,000 591 669 719 758 789 831 426 482 518 545 567 597 427 490 531 562 588 623 $40,000 $50,000 659 746 802 844 879 926 474 536 576 606 631 664 470 539 583 618 646 685 $50,000 $60,000 718 813 874 920 958 1010 516 584 627 660 687 723 507 581 629 666 697 739 $60,000 $70,000 771 873 939 989 1029 1085 554 626 673 708 737 776 540 619 670 709 742 786 $70,000 $80,000 820 928 998 1051 1094 1153 588 665 714 752 782 824 570 653 707 748 782 829 $80,000 $90,000 865 979 1053 1109 1154 1217 620 701 753 792 825 869 598 684 741 784 820 869 $90,000 $100,000 907 1026 1104 1162 1210 1276 649 734 789 830 864 910 623 713 772 817 854 906 $100,000 $120,000 962 1089 1171 1233 1284 1354 688 778 836 880 916 965 657 751 814 861 900 954 $120,000 $140,000 1034 1170 1258 1325 1379 1454 738 835 897 944 983 1035 699 800 866 917 958 1016 $140,000 $160,000 1100 1245 1339 1410 1468 1547 785 887 953 1004 1044 1100 739 845 915 968 1012 1072 $160,000 $180,000 1160 1313 1412 1487 1548 1632 827 935 1005 1058 1101 1160 774 886 959 1015 1060 1124 $180,000 $200,000 1217 1377 1481 1560 1624 1712 867 980 1053 1109 1154 1216 808 924 1000 1058 1106 1172 $200,000 $225,000 1275 1444 1553 1635 1702 1795 908 1026 1103 1161 1208 1273 842 963 1042 1103 1152 1221 $225,000 $250,000 1338 1514 1629 1715 1786 1883 951 1076 1156 1217 1267 1335 878 1004 1087 1150 1202 1273 $250,000 $275,000 1396 1581 1700 1791 1864 1965 992 1122 1206 1270 1321 1392 912 1043 1129 1194 1248 1322 $275,000 $300,000 1452 1644 1768 1862 1938 2044 1031 1166 1253 1319 1373 1447 944 1080 1168 1236 1291 1368 $300,000 or more 1776 2011 2163 2278 2371 2500 1257 1422 1528 1609 1674 1764 1128 1289 1395 1475 1541 1633 Income Maryland 4 6.0000% Massachusetts 4 6.2500% Michigan 4 6.0000% $0 $20,000 308 361 397 425 448 481 307 345 370 389 404 425 330 377 408 432 451 478 $20,000 $30,000 432 506 556 595 627 673 433 487 522 549 570 599 468 535 579 613 640 678 $30,000 $40,000 494 578 635 680 716 768 496 558 598 628 653 687 537 614 665 703 735 778 $40,000 $50,000 545 639 702 750 791 848 549 617 662 695 723 760 595 681 737 779 814 862 $50,000 $60,000 591 692 760 812 856 917 595 670 718 754 784 824 646 739 800 846 884 936 $60,000 $70,000 631 739 811 868 914 979 636 716 768 807 838 881 692 791 856 906 946 1002 $70,000 $80,000 668 782 858 918 967 1036 674 758 813 854 887 933 733 838 907 960 1003 1062 $80,000 $90,000 702 821 901 964 1015 1088 709 797 855 898 933 981 771 882 955 1010 1055 1118 $90,000 $100,000 733 857 941 1006 1060 1136 741 834 893 939 975 1026 807 923 999 1056 1104 1169 $100,000 $120,000 774 906 994 1063 1120 1199 783 881 945 992 1031 1084 854 976 1057 1118 1168 1237 $120,000 $140,000 827 967 1062 1135 1196 1281 838 943 1010 1061 1103 1160 914 1045 1131 1197 1250 1324 $140,000 $160,000 876 1024 1124 1201 1265 1355 888 999 1071 1125 1169 1229 969 1109 1200 1269 1326 1405 $160,000 $180,000 920 1076 1181 1262 1329 1423 933 1050 1126 1183 1229 1292 1020 1167 1262 1336 1395 1478 $180,000 $200,000 962 1124 1234 1318 1389 1487 976 1099 1177 1237 1285 1351 1068 1221 1321 1398 1460 1547 $200,000 $225,000 1005 1174 1288 1377 1450 1553 1020 1148 1231 1293 1343 1413 1117 1277 1382 1462 1527 1618 $225,000 $250,000 1050 1227 1346 1439 1515 1622 1067 1201 1287 1352 1405 1477 1169 1336 1446 1530 1598 1693 $250,000 $275,000 1093 1277 1400 1496 1576 1687 1111 1250 1340 1408 1462 1538 1217 1392 1506 1594 1665 1763 $275,000 $300,000 1133 1323 1452 1551 1633 1749 1152 1297 1390 1460 1517 1595 1263 1445 1563 1654 1728 1830 $300,000 or more 1365 1594 1747 1867 1965 2104 1392 1567 1679 1764 1833 1927 1530 1750 1894 2003 2093 2217 Income Minnesota 1 6.8750% Mississippi 2 7.0000% Missouri 2 4.2250% $0 $20,000 357 396 422 441 456 477 562 668 739 795 841 905 251 289 315 334 350 373 $20,000 $30,000 520 578 615 643 665 695 777 922 1020 1096 1159 1248 357 412 448 476 499 531 $30,000 $40,000 603 671 714 746 772 807 882 1047 1158 1244 1316 1417 411 474 516 547 574 610 $40,000 $50,000 674 750 798 834 863 902 970 1151 1273 1368 1447 1557 456 526 572 608 637 677 $50,000 $60,000 737 820 872 911 943 986 1047 1242 1373 1476 1561 1680 495 572 622 660 692 736 $60,000 $70,000 793 882 939 981 1015 1061 1115 1322 1462 1571 1662 1788 531 612 666 707 741 788 $70,000 $80,000 845 940 1000 1045 1081 1130 1176 1395 1543 1658 1753 1887 563 649 707 750 786 836 $80,000 $90,000 893 993 1056 1104 1142 1194 1233 1462 1617 1737 1837 1977 593 684 744 790 828 880 $90,000 $100,000 937 1042 1109 1159 1199 1254 1285 1524 1685 1811 1915 2061 620 716 778 827 866 921 $100,000 $120,000 996 1108 1179 1232 1275 1333 1354 1606 1775 1907 2017 2170 657 758 824 875 917 975 $120,000 $140,000 1073 1193 1269 1326 1372 1435 1442 1710 1891 2031 2148 2311 704 812 883 938 983 1045 $140,000 $160,000 1143 1271 1353 1414 1463 1530 1523 1805 1996 2144 2267 2440 747 862 937 995 1043 1109 $160,000 $180,000 1208 1343 1429 1494 1546 1617 1596 1892 2092 2247 2376 2557 786 907 987 1048 1098 1168 $180,000 $200,000 1269 1411 1501 1569 1624 1698 1665 1973 2182 2343 2478 2666 823 950 1033 1097 1150 1223 $200,000 $225,000 1332 1481 1576 1647 1705 1783 1735 2057 2274 2442 2582 2778 862 994 1081 1148 1203 1279 $225,000 $250,000 1399 1556 1656 1731 1791 1873 1810 2145 2371 2547 2693 2897 902 1041 1132 1202 1260 1340 $250,000 $275,000 1463 1627 1731 1809 1872 1958 1879 2227 2462 2645 2796 3008 940 1085 1180 1253 1313 1396 $275,000 $300,000 1523 1693 1802 1883 1949 2038 1945 2305 2548 2737 2893 3113 976 1126 1225 1301 1363 1450 $300,000 or more 1875 2085 2218 2319 2399 2509 2323 2752 3041 3266 3452 3714 1185 1367 1488 1580 1655 1760 A-14

Income Family Size Family Size Family Size But At less Over Over Over least than 1 2 3 4 5 5 1 2 3 4 5 5 1 2 3 4 5 5 Nebraska 1 5.5000% Nevada 5 6.8500% New Jersey 4 6.6250% $0 $20,000 320 361 388 408 425 447 382 436 471 498 520 550 365 403 427 445 460 479 $20,000 $30,000 461 521 560 589 613 645 539 615 664 702 732 775 529 584 619 645 666 694 $30,000 $40,000 533 602 647 681 708 746 617 704 760 803 839 887 612 676 716 746 770 803 $40,000 $50,000 594 671 721 758 789 831 683 779 841 889 928 981 682 753 798 832 859 895 $50,000 $60,000 647 732 786 827 860 906 740 844 912 964 1006 1064 744 822 871 908 937 977 $60,000 $70,000 695 786 844 888 924 973 791 903 975 1030 1075 1138 800 883 936 975 1007 1050 $70,000 $80,000 739 835 897 944 982 1034 838 956 1033 1091 1139 1205 851 939 996 1037 1071 1117 $80,000 $90,000 779 881 946 996 1036 1091 881 1005 1085 1147 1197 1266 898 991 1051 1095 1130 1178 $90,000 $100,000 817 923 992 1044 1086 1144 921 1050 1134 1199 1251 1323 942 1040 1102 1148 1185 1236 $100,000 $120,000 867 980 1053 1108 1152 1214 973 1110 1199 1267 1322 1399 1000 1104 1170 1219 1258 1312 $120,000 $140,000 931 1053 1131 1190 1238 1304 1041 1187 1282 1355 1414 1496 1075 1187 1257 1310 1353 1411 $140,000 $160,000 991 1120 1203 1266 1317 1387 1103 1258 1359 1435 1498 1585 1144 1263 1338 1395 1440 1501 $160,000 $180,000 1045 1181 1269 1336 1390 1464 1160 1322 1428 1509 1575 1666 1207 1333 1412 1472 1520 1584 $180,000 $200,000 1096 1239 1331 1401 1457 1535 1213 1383 1494 1578 1647 1742 1267 1399 1482 1544 1594 1663 $200,000 $225,000 1149 1299 1395 1469 1528 1609 1267 1445 1561 1649 1721 1820 1328 1467 1554 1620 1672 1744 $225,000 $250,000 1205 1362 1464 1541 1603 1688 1325 1511 1632 1724 1800 1904 1394 1539 1631 1700 1755 1830 $250,000 $275,000 1258 1422 1528 1608 1673 1762 1380 1573 1699 1795 1873 1981 1455 1607 1703 1775 1832 1911 $275,000 $300,000 1308 1479 1589 1672 1740 1833 1431 1632 1762 1862 1943 2055 1514 1672 1772 1846 1906 1987 $300,000 or more 1600 1809 1944 2046 2128 2242 1728 1970 2128 2248 2346 2481 1855 2048 2171 2262 2335 2435 Income New Mexico 1 5.0620% New York 2 4.0000% North Carolina 2 4.7500% $0 $20,000 346 379 400 416 428 445 220 244 260 272 281 294 310 365 401 429 452 485 $20,000 $30,000 508 556 587 610 628 653 318 354 376 393 407 426 434 510 561 600 632 678 $30,000 $40,000 590 647 683 710 731 760 368 409 435 455 471 493 495 582 640 684 722 774 $40,000 $50,000 661 725 765 795 818 851 410 456 485 507 525 549 547 642 706 755 796 854 $50,000 $60,000 724 793 837 870 896 931 447 498 530 554 573 599 592 695 764 818 862 924 $60,000 $70,000 780 855 902 937 965 1004 481 535 569 595 616 644 632 742 816 873 920 986 $70,000 $80,000 831 911 962 999 1029 1070 511 569 605 633 655 685 668 784 862 923 973 1042 $80,000 $90,000 879 964 1017 1056 1088 1131 539 600 639 668 691 723 702 824 905 969 1021 1094 $90,000 $100,000 924 1013 1068 1110 1143 1189 566 629 670 700 725 758 733 860 945 1011 1066 1143 $100,000 $120,000 983 1077 1137 1181 1217 1265 600 668 711 743 769 805 774 908 998 1068 1125 1206 $120,000 $140,000 1059 1161 1225 1273 1311 1363 645 718 764 799 827 865 826 969 1065 1140 1201 1288 $140,000 $160,000 1130 1239 1307 1358 1399 1454 687 764 814 851 880 921 874 1026 1127 1206 1271 1362 $160,000 $180,000 1195 1310 1383 1436 1479 1538 725 807 859 898 929 972 918 1077 1184 1266 1335 1430 $180,000 $200,000 1257 1377 1453 1510 1555 1617 760 846 901 942 975 1020 959 1125 1237 1323 1394 1494 $200,000 $225,000 1320 1447 1527 1586 1634 1698 797 887 945 988 1022 1070 1001 1175 1291 1381 1455 1560 $225,000 $250,000 1388 1521 1605 1668 1718 1786 837 931 991 1036 1073 1122 1046 1227 1349 1443 1520 1629 $250,000 $275,000 1452 1591 1679 1744 1797 1868 874 972 1035 1082 1120 1172 1088 1276 1402 1500 1581 1694 $275,000 $300,000 1512 1658 1749 1817 1872 1946 909 1011 1077 1126 1165 1219 1127 1322 1453 1555 1638 1756 $300,000 or more 1868 2047 2160 2244 2311 2402 1113 1239 1319 1379 1428 1494 1355 1590 1747 1868 1969 2110 Income North Dakota 1 5.0000% Ohio 1 5.7500% Oklahoma 1 4.5000% $0 $20,000 268 309 336 357 374 398 341 385 413 435 452 476 341 405 449 483 511 551 $20,000 $30,000 380 438 477 506 530 564 487 549 590 620 645 679 472 560 621 668 707 762 $30,000 $40,000 437 503 547 581 609 647 560 632 678 714 742 781 537 637 705 759 803 865 $40,000 $50,000 484 558 607 644 675 718 622 702 753 792 824 867 591 701 776 835 883 952 $50,000 $60,000 526 606 659 699 733 779 676 763 819 862 896 943 638 757 838 901 953 1027 $60,000 $70,000 563 648 705 749 784 834 725 818 878 924 960 1011 680 807 893 960 1016 1094 $70,000 $80,000 597 687 747 793 831 884 769 868 932 980 1019 1073 718 851 942 1013 1072 1155 $80,000 $90,000 628 723 786 835 875 930 810 914 981 1032 1073 1130 753 893 988 1062 1124 1210 $90,000 $100,000 657 756 823 873 915 973 848 957 1027 1080 1123 1183 785 931 1030 1107 1172 1262 $100,000 $120,000 695 801 870 924 968 1030 898 1013 1088 1144 1190 1253 827 981 1086 1167 1235 1330 $120,000 $140,000 744 857 932 989 1037 1102 962 1086 1166 1226 1275 1343 882 1046 1157 1243 1315 1417 $140,000 $160,000 789 909 988 1049 1099 1169 1022 1153 1238 1302 1354 1426 932 1105 1222 1313 1389 1496 $160,000 $180,000 831 957 1040 1104 1157 1230 1076 1215 1304 1371 1426 1501 977 1158 1281 1377 1456 1569 $180,000 $200,000 869 1001 1089 1156 1211 1287 1127 1272 1366 1436 1494 1572 1020 1208 1336 1436 1519 1636 $200,000 $225,000 909 1047 1139 1209 1266 1346 1180 1332 1430 1503 1563 1646 1063 1260 1393 1497 1584 1706 $225,000 $250,000 952 1096 1192 1265 1325 1409 1236 1395 1497 1575 1638 1724 1110 1315 1454 1562 1652 1779 $250,000 $275,000 992 1142 1241 1318 1380 1468 1288 1454 1561 1642 1707 1797 1153 1366 1510 1623 1716 1848 $275,000 $300,000 1029 1185 1288 1368 1433 1523 1338 1510 1621 1705 1773 1866 1193 1414 1563 1680 1777 1913 $300,000 or more 1247 1436 1561 1657 1736 1845 1626 1835 1970 2072 2155 2269 1428 1691 1869 2008 2123 2286 Income Pennsylvania 1 6.0000% Rhode Island 4 7.0000% South Carolina 2 6.0000% $0 $20,000 316 355 380 399 415 436 358 406 436 459 478 504 344 394 426 450 470 498 $20,000 $30,000 446 501 536 563 584 614 508 575 619 652 678 715 487 557 602 637 665 704 $30,000 $40,000 510 573 614 644 669 703 583 660 710 748 778 821 558 638 690 730 762 807 $40,000 $50,000 565 634 679 713 740 778 647 732 787 829 863 909 618 706 764 808 844 893 $50,000 $60,000 612 688 736 773 802 843 702 795 855 900 937 988 670 766 829 877 916 969 $60,000 $70,000 655 735 787 826 858 901 752 851 915 963 1003 1057 717 820 887 938 979 1037 $70,000 $80,000 693 778 833 875 908 954 797 902 970 1021 1063 1120 760 868 939 993 1037 1098 $80,000 $90,000 728 818 876 919 955 1003 838 949 1020 1074 1118 1179 799 913 988 1045 1091 1155 $90,000 $100,000 761 855 916 961 998 1048 877 992 1067 1124 1170 1233 835 955 1033 1092 1141 1208 $100,000 $120,000 805 904 968 1016 1055 1108 928 1050 1129 1189 1238 1305 883 1010 1092 1155 1206 1277 $120,000 $140,000 861 967 1035 1086 1128 1185 993 1124 1209 1273 1325 1397 945 1080 1169 1236 1291 1366 $140,000 $160,000 912 1024 1096 1151 1195 1256 1053 1192 1282 1350 1405 1481 1002 1145 1239 1310 1368 1448 $160,000 $180,000 959 1077 1153 1210 1256 1320 1108 1255 1349 1421 1479 1559 1054 1205 1303 1378 1439 1523 $180,000 $200,000 1002 1126 1205 1265 1314 1380 1160 1313 1412 1487 1547 1631 1102 1260 1363 1441 1505 1593 $200,000 $225,000 1047 1177 1260 1322 1373 1442 1213 1373 1477 1555 1618 1706 1152 1317 1425 1506 1573 1665 $225,000 $250,000 1095 1230 1317 1383 1436 1508 1269 1437 1545 1627 1694 1785 1206 1378 1490 1576 1646 1742 $250,000 $275,000 1140 1281 1371 1439 1494 1570 1322 1497 1610 1695 1764 1860 1255 1435 1552 1641 1714 1814 $275,000 $300,000 1183 1328 1422 1493 1550 1628 1372 1554 1671 1759 1831 1930 1302 1489 1610 1702 1778 1882 $300,000 or more 1428 1604 1717 1802 1871 1965 1662 1882 2024 2131 2218 2338 1575 1800 1947 2058 2150 2275 A-15

Income Family Size Family Size Family Size But At less Over Over Over least than 1 2 3 4 5 5 1 2 3 4 5 5 1 2 3 4 5 5 South Dakota 1 4.5000% Tennessee 2 7.0000% Texas 1 6.2500% $0 $20,000 374 440 484 519 547 586 481 561 614 655 689 736 369 423 458 484 506 536 $20,000 $30,000 527 620 683 731 770 826 676 788 863 921 969 1035 526 602 652 690 721 764 $30,000 $40,000 604 710 782 836 882 945 773 902 987 1053 1108 1184 605 693 750 794 830 879 $40,000 $50,000 668 786 865 925 976 1046 855 997 1091 1164 1224 1308 672 769 833 881 921 976 $50,000 $60,000 724 852 937 1003 1058 1134 926 1080 1183 1262 1327 1418 730 836 905 958 1001 1061 $60,000 $70,000 775 911 1002 1073 1131 1212 990 1154 1264 1348 1418 1515 782 896 970 1027 1073 1137 $70,000 $80,000 820 964 1061 1136 1197 1283 1048 1222 1338 1427 1501 1603 830 950 1029 1089 1138 1206 $80,000 $90,000 862 1014 1115 1194 1258 1349 1101 1284 1406 1499 1577 1684 874 1001 1083 1147 1198 1269 $90,000 $100,000 901 1060 1166 1248 1315 1410 1150 1341 1469 1567 1647 1760 914 1047 1134 1200 1254 1329 $100,000 $120,000 952 1120 1232 1319 1390 1490 1215 1417 1552 1655 1741 1860 968 1109 1201 1271 1328 1407 $120,000 $140,000 1018 1198 1317 1410 1486 1593 1299 1515 1658 1769 1860 1987 1038 1189 1287 1362 1423 1508 $140,000 $160,000 1079 1269 1396 1494 1575 1688 1376 1604 1756 1874 1970 2105 1102 1262 1366 1446 1511 1601 $160,000 $180,000 1134 1334 1467 1570 1655 1774 1446 1686 1846 1969 2070 2212 1160 1329 1439 1523 1591 1686 $180,000 $200,000 1186 1395 1534 1642 1731 1855 1511 1762 1929 2058 2164 2312 1215 1391 1507 1595 1666 1766 $200,000 $225,000 1240 1458 1603 1716 1809 1939 1579 1841 2016 2150 2261 2415 1271 1456 1577 1669 1744 1848 $225,000 $250,000 1296 1524 1677 1794 1891 2027 1651 1925 2107 2247 2363 2525 1331 1525 1651 1748 1826 1935 $250,000 $275,000 1349 1587 1745 1867 1969 2110 1718 2003 2193 2339 2459 2627 1387 1589 1721 1822 1904 2017 $275,000 $300,000 1400 1646 1810 1937 2042 2188 1781 2077 2273 2425 2550 2724 1441 1650 1787 1892 1977 2095 $300,000 or more 1690 1986 2185 2338 2464 2641 2148 2504 2741 2923 3074 3283 1750 2005 2171 2298 2402 2545 Income Utah 2 4.8500% Vermont 1 6.0000% Virginia 2 4.3000% $0 $20,000 342 397 435 463 487 519 253 275 289 300 308 319 251 295 324 346 365 391 $20,000 $30,000 481 560 612 652 685 731 354 385 404 419 430 446 355 416 457 489 515 552 $30,000 $40,000 550 640 700 746 783 836 404 439 462 478 491 509 407 477 524 560 590 632 $40,000 $50,000 609 708 774 825 866 925 446 485 510 528 542 562 450 528 580 620 653 700 $50,000 $60,000 660 768 839 894 939 1002 482 525 551 571 587 608 489 573 629 673 709 759 $60,000 $70,000 705 820 897 955 1004 1071 515 560 589 610 627 649 523 612 673 719 758 812 $70,000 $80,000 747 868 949 1011 1062 1134 544 592 623 645 663 687 554 649 712 762 803 860 $80,000 $90,000 785 913 998 1063 1117 1191 572 622 654 677 696 721 582 682 749 801 844 904 $90,000 $100,000 820 954 1042 1111 1167 1245 597 650 682 707 726 753 609 713 783 837 882 945 $100,000 $120,000 867 1008 1102 1174 1233 1316 630 686 721 746 767 795 644 754 828 885 933 999 $120,000 $140,000 927 1077 1178 1255 1318 1406 673 732 769 797 819 849 689 807 886 947 998 1068 $140,000 $160,000 981 1141 1247 1329 1396 1490 712 775 814 843 867 898 730 855 939 1004 1057 1132 $160,000 $180,000 1032 1200 1311 1397 1467 1566 748 814 855 885 910 943 768 899 987 1055 1112 1191 $180,000 $200,000 1079 1254 1371 1460 1534 1637 781 850 893 925 951 985 803 940 1033 1104 1163 1245 $200,000 $225,000 1127 1310 1432 1526 1603 1710 815 887 932 966 992 1029 839 983 1079 1154 1215 1301 $225,000 $250,000 1178 1370 1497 1595 1676 1788 852 927 974 1009 1037 1075 878 1028 1129 1207 1271 1361 $250,000 $275,000 1226 1426 1558 1660 1744 1861 886 964 1013 1049 1078 1118 914 1071 1175 1256 1323 1417 $275,000 $300,000 1272 1479 1616 1722 1809 1930 918 999 1050 1087 1118 1158 949 1111 1219 1303 1373 1470 $300,000 or more 1534 1784 1950 2077 2182 2328 1103 1201 1262 1307 1344 1393 1147 1343 1474 1575 1659 1776 Income Washington 1 6.5000% West Virginia 1 6.0000% Wisconsin 1 5.0000% $0 $20,000 397 452 487 514 536 566 351 399 430 453 472 498 304 346 373 393 410 433 $20,000 $30,000 569 647 698 736 768 811 513 583 628 662 690 729 436 495 534 564 587 620 $30,000 $40,000 656 746 804 848 885 934 596 677 730 769 802 847 502 571 616 649 677 715 $40,000 $50,000 729 829 894 943 983 1039 666 757 816 861 897 947 558 635 684 722 753 795 $50,000 $60,000 793 902 973 1026 1070 1130 729 828 892 941 981 1036 608 691 745 786 819 865 $60,000 $70,000 850 967 1043 1100 1147 1212 784 891 961 1014 1056 1115 652 741 799 843 879 928 $70,000 $80,000 903 1027 1107 1168 1218 1287 836 950 1024 1080 1125 1188 692 787 848 895 933 985 $80,000 $90,000 951 1082 1166 1231 1283 1356 883 1004 1082 1141 1189 1256 729 829 894 943 983 1038 $90,000 $100,000 996 1133 1222 1289 1344 1420 927 1054 1136 1199 1249 1319 764 868 936 988 1030 1088 $100,000 $120,000 1055 1200 1295 1366 1424 1504 986 1121 1208 1275 1329 1403 809 920 993 1047 1092 1153 $120,000 $140,000 1132 1287 1388 1465 1528 1614 1062 1207 1302 1373 1431 1511 868 987 1065 1123 1171 1237 $140,000 $160,000 1202 1368 1475 1556 1623 1714 1132 1287 1388 1464 1526 1611 923 1049 1131 1194 1244 1314 $160,000 $180,000 1267 1441 1554 1640 1710 1806 1197 1360 1467 1547 1613 1703 972 1106 1192 1258 1311 1385 $180,000 $200,000 1327 1510 1628 1718 1792 1893 1257 1429 1541 1626 1695 1790 1019 1159 1249 1318 1374 1451 $200,000 $225,000 1390 1581 1705 1799 1876 1982 1320 1501 1618 1707 1780 1879 1067 1213 1308 1380 1439 1520 $225,000 $250,000 1456 1657 1787 1885 1966 2077 1387 1577 1701 1794 1870 1975 1118 1272 1371 1447 1508 1593 $250,000 $275,000 1519 1728 1863 1966 2050 2165 1450 1649 1778 1876 1955 2065 1166 1326 1430 1509 1573 1661 $275,000 $300,000 1578 1795 1936 2043 2130 2250 1510 1717 1851 1953 2036 2150 1212 1378 1486 1568 1634 1726 $300,000 or more 1921 2185 2357 2487 2593 2739 1860 2116 2282 2407 2510 2651 1476 1679 1810 1910 1991 2103 Income Wyoming 1 4.0000% Note: Residents of Alaska do not have a state sales tax, but should follow the instructions on the next page to determine their local sales tax amount. $0 $20,000 239 270 289 304 316 333 1. Use the Ratio Method to determine your local sales tax deduction. Your state sales tax rate is $20,000 $30,000 341 384 412 433 450 474 provided next to the state name. 2. Follow the instructions on the next page to determine your local sales tax deduction. $30,000 $40,000 392 442 474 498 518 545 3. The California table includes the 1.25% uniform local sales tax rate in addition to the 6.00% $40,000 $50,000 435 490 526 553 575 605 state sales tax rate for a total of 7.25%. Some California localities impose a larger local sales tax. $50,000 $60,000 473 533 572 601 625 658 Taxpayers who reside in those jurisdictions should use the Ratio Method to determine their local sales $60,000 $70,000 507 571 613 644 670 705 tax deduction. The denominator of the correct ratio is 7.25%, and the numerator is the total sales tax rate $70,000 $80,000 537 606 650 683 711 748 minus 7.25%. $80,000 $90,000 566 638 684 720 748 787 4. This state does not have a local general sales tax, so the amount in the state table is the only $90,000 $100,000 592 668 716 753 783 824 amount to be deducted. 5. The Nevada table includes the 2.25% uniform local sales tax rate in addition to the 4.6000%$100,000 $120,000 627 707 759 798 829 873 state sales tax rate for a total of 6.85%. Some Nevada localities impose a larger local sales tax. Taxpayers $120,000 $140,000 672 758 813 855 889 935 who reside in those jurisdictions should use the Ratio Method to determine their local sales tax $140,000 $160,000 713 804 863 907 943 993 deduction. The denominator of the correct ratio is 6.85%, and the numerator is the total sales tax rate $160,000 $180,000 751 847 909 955 993 1045 minus 6.85%. $180,000 $200,000 787 887 952 1000 1040 1095 6. The 4.0% rate for Hawaii is actually an excise tax but is treated as a sales tax for purpose of $200,000 $225,000 823 928 996 1047 1089 1146 this deduction. $225,000 $250,000 862 972 1043 1097 1140 1200 $250,000 $275,000 899 1013 1087 1143 1188 1250 $275,000 $300,000 933 1052 1129 1187 1234 1298 $300,000 or more 1133 1278 1371 1442 1499 1577 A-16

(i5695)Instructions for Form 5695, Residential Energy Credits (2022)#

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2022 Instructions for Form 5695 Residential Energy Credits Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Future Developments For the latest information about developments related to Form 5695 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form5695. What’s New Residential clean energy credit. The residential energy efficient property credit is now the residential clean energy credit. The credit rate for property placed in service in 2022 through 2032 is 30%. Energy efficient home improvement credit. The nonbusiness energy property credit is now the energy efficient home improvement credit. The credit is extended to property placed in service through December 31, 2022. Purpose of Form Use Form 5695 to figure and take your residential energy credits. The residential energy credits are: • The residential clean energy credit, and • The energy efficient home improvement credit. Also use Form 5695 to take any residential energy efficient property credit carryforward from 2021 or to carry the unused portion of the residential clean energy credit to 2023. Who Can Take the Credits You may be able to take the credits if you made energy saving improvements to your home located in the United States in 2022. Home. A home is where you lived in 2022 and can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards. You must reduce the basis of your home by the amount of any credit allowed. Main home. Your main home is generally the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation, won't change your main home. Costs. For purposes of both credits, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential clean energy credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit. The residential clean energy credit (Part I) is available for both existing homes and homes being constructed. The energy efficient home improvement credit (Part II) is only available for existing homes. CAUTION ! IRS guidance issued with respect to the energy credit under section 48, such as Notice 2018-59, does not apply to the residential energy credits. Association or cooperative costs. If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation. If you received a subsidy from a public utility for the purchase or installation of an energy conservation product and that subsidy wasn't included in your gross income, you must reduce your cost for the product by the amount of that subsidy before you figure your credit. This rule also applies if a third party (such as a contractor) receives the subsidy on your behalf. Residential Clean Energy Credit (Part I) If you made energy saving improvements to more than one home that you used as a residence during 2022, enter the total of those costs on the applicable line(s) of one Form 5695. For qualified fuel cell property, see Lines 7a and 7b, later. You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, biomass fuel property, and fuel cell property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home. The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. Qualified solar electric property costs. Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. Some solar roofing tiles and solar roofing shingles serve the function of both traditional roofing and solar electric collectors, and thus serve functions of both solar electric generation and structural support. These solar roofing tiles and solar roofing shingles can qualify for the credit. This is in contrast to structural components such as a roof's decking or rafters that serve only a roofing or structural function and thus do not qualify for the credit. The home doesn't have to be your main home. Qualified solar water heating property costs. Qualified solar water heating property costs are costs for property to heat water for use in your home located in the United States if at least half of the energy used by the solar water heating property for such purpose is derived from the sun. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. Some solar roofing tiles and solar roofing shingles serve the function of both traditional roofing and solar electric collectors, and thus serve functions of both solar electric generation and structural support. These solar roofing tiles and solar roofing shingles can qualify for the credit. This is in contrast to structural components such as a roof's decking or rafters that serve only a roofing or structural function and thus do not qualify for the credit. To qualify for the credit, the property must be certified for performance by the nonprofit Solar Rating Certification CAUTION ! CAUTION ! Dec 22, 2022 Cat. No. 66412G

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Corporation or a comparable entity endorsed by the government of the state in which the property is installed. The home doesn't have to be your main home. Qualified small wind energy property costs. Qualified small wind energy property costs are costs for property that uses a wind turbine to generate electricity for use in connection with your home located in the United States. The home doesn't have to be your main home. Qualified geothermal heat pump property costs. Qualified geothermal heat pump property costs are costs for qualified geothermal heat pump property installed on or in connection with your home located in the United States. Qualified geothermal heat pump property is any equipment that uses the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home. To qualify for the credit, the geothermal heat pump property must meet the requirements of the Energy Star program that are in effect at the time of purchase. The home doesn't have to be your main home. Qualified biomass fuel property costs. Qualified biomass fuel property costs are costs for property which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and has a thermal efficiency rating of at least 75% (measured by the higher heating value of the fuel). Biomass fuel means any plant derived fuel available on a renewable or recurring basis. Qualified fuel cell property costs. Qualified fuel cell property costs are costs for qualified fuel cell property installed on or in connection with your main home located in the United States. Qualified fuel cell property is an integrated system comprised of a fuel cell stack assembly and associated balance of plant components that converts a fuel into electricity using electrochemical means. To qualify for the credit, the fuel cell property must have a nameplate capacity of at least one-half kilowatt of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%. Costs allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage don't qualify for the residential clean energy credit. Joint occupancy. If you occupied your home jointly with someone other than your spouse, each occupant must complete their own Form 5695. To figure the credit, the maximum qualifying costs that can be taken into account by all occupants for qualified fuel cell property costs is $1,667 for each one-half kilowatt of capacity of the property. The amount allocable to you for qualified fuel cell property costs is the lesser of: 1. The amount you paid, or 2. The maximum qualifying cost of the property multiplied by a fraction. The numerator is the amount you paid and the denominator is the total amount paid by you and all other occupants. These rules don't apply to married individuals filing a joint return. Example. Taxpayer A owns a house with Taxpayer B where they both reside. In 2022, they installed qualified fuel cell property at a cost of $20,000 with a kilowatt capacity of 5. Taxpayer A paid $12,000 towards the cost of the property and Taxpayer B paid the remaining $8,000. The amount to be allocated is $16,670 ($1,667 x 10 (kilowatt capacity x 2)). The amount of cost allocable to Taxpayer A is $10,002 ($16,670 x $12,000/$20,000). The amount of cost allocable to Taxpayer B is $6,668 ($16,670 x $8,000/$20,000). Energy Efficient Home Improvement Credit (Part II) You may be able to take a credit equal to the sum of: CAUTION ! 1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and 2. Any residential energy property costs paid or incurred in 2022. However, this credit is limited as follows. • A total combined credit limit of $500 for all tax years after 2005. • A combined credit limit of $200 for windows for all tax years after 2005. • A credit limit for residential energy property costs for 2022 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. If the total of any nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you generally can't take the energy efficient home improvement credit in 2022. Subsidized energy financing. Any amounts provided for by subsidized energy financing can't be used to figure the energy efficient home improvement credit. This is financing provided under a federal, state, or local program, the principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy. Qualified energy efficiency improvements. Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2022 located in the United States if the original use of the component begins with you, the component can be expected to remain in use at least 5 years, and the component meets certain energy standards. • Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home. • Exterior windows and skylights. • Exterior doors. • Any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home. For purposes of figuring the credit, don't include amounts paid for the onsite preparation, assembly, or original installation of the building envelope component. To qualify for the credit, qualified energy efficiency improvements must meet certain energy efficiency requirements. See Lines 19a Through 19h, later, for details. Residential energy property costs. Residential energy property costs are costs of new qualified energy property that is installed on or in connection with your main home that you owned during 2022 located in the United States. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the energy property. Qualified energy property is any of the following. • Certain electric heat pump water heaters; electric heat pumps; central air conditioners; and natural gas, propane, or oil water heaters. • Qualified natural gas, propane, or oil furnaces and qualified natural gas, propane, or oil hot water boilers. • Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. To qualify for the credit, qualified energy property must meet certain energy efficiency requirements. See Lines 22a Through 22c, later, for details. Joint ownership of qualified property. If you and a neighbor shared the cost of qualifying property to benefit each of your main homes, both of you can take the energy efficient home improvement credit. You figure your credit on the part of the cost you paid. The limit on the amount of the credit applies to each of you separately. Married taxpayers with more than one home. If both you and your spouse owned and lived apart in separate main homes, the CAUTION ! CAUTION ! CAUTION ! -2- Instructions for Form 5695 (2022)

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limit on the amount of the credit applies to each of you separately. If you are filing separate returns, both of you would complete a separate Form 5695. If you are filing a joint return, figure your energy efficient home improvement credit as follows. 1. Complete lines 17a through 17c and 19 through 24 of a separate Form 5695 for each main home. 2. Figure the amount to be entered on line 24 of both forms (but not more than $500 for each form) and enter the combined amount on line 24 of one of the forms. 3. On line 25 of the form with the combined amount on line 24, cross out the preprinted $500 and enter $1,000. 4. On the dotted line to the left of line 25, enter “More than one main home.” Then, complete the rest of this form, including line 18. The amount on line 18 can exceed $500. 5. Attach both forms to your return. Joint occupancy. If you owned your home jointly with someone other than your spouse, each owner must complete their own Form 5695. To figure the credit, there are no maximum qualifying costs for insulation, exterior doors, and a metal or asphalt roof. Enter the amounts you paid for these items on the appropriate lines of Form 5695, Part II. For windows and residential energy property costs, the amount allocable to you is the smaller of: 1. The amount you paid, or 2. The maximum qualifying cost* of the property multiplied by a fraction. The numerator is the amount you paid and the denominator is the total amount paid by you and all other owners. * $2,000 for windows; $300 for energy-efficient building property; $150 for qualified natural gas, propane, or oil furnace or hot water boiler; or $50 for an advanced main air circulating fan. Specific Instructions Part I Residential Clean Energy Credit Before you begin Part I. Figure the amount of the credits shown in the credit limitation worksheet if you take those credits on your return. Also, include on lines 1 through 5, and 8, any labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home. Line 1 Enter the amounts you paid for qualified solar electric property. See Qualified solar electric property costs, earlier. Line 2 Enter the amounts you paid for qualified solar water heating property. See Qualified solar water heating property costs, earlier. Line 3 Enter the amounts you paid for qualified small wind energy property. See Qualified small wind energy property costs, earlier. Line 4 Enter the amounts you paid for qualified geothermal heat pump property. See Qualified geothermal heat pump property costs, earlier. TIP Line 5 Enter the amounts you paid for qualified biomass fuel property. See Qualified biomass fuel property costs, earlier. Lines 7a and 7b Any qualified fuel cell property costs must have been for your main home located in the United States. See Main home, earlier. If you check the “No” box, you can't include any fuel cell property costs on line 8. If you check the “Yes” box, enter the full address of your main home during 2022 on line 7b. If you and your spouse are filing jointly and you each have different main homes with qualified fuel cell property costs, provide on line 7b the address of your main home. Add a sheet providing the address of your spouse's main home. You and your spouse should add your qualified fuel cell property costs together on line 8 of one Form 5695. Line 8 Enter the amounts you paid for qualified fuel cell property. See Qualified fuel cell property costs, earlier. Line 14 Complete the following worksheet to figure the amount to enter on line 14. Instructions for Form 5695 (2022) -3-

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Residential Clean Energy Credit Limit Worksheet—Line 14 1. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18 . . 1.

2. Enter the total of the following credit(s)/adjustment(s) if you are taking the credit(s)/adjustment(s) on your 2022 income tax return: + Negative Form 8978 Adjustment, Schedule 3 (Form 1040), line 6l .

+ Foreign Tax Credit, Schedule 3 (Form 1040), line 1 . . . . . . . . . .

+ Credit for Child and Dependent Care Expenses, Schedule 3 (Form 1040), line 2 . . . . . . . . . . . . . . .

+ Credit for the Elderly or the Disabled, Schedule R (Form 1040), line 22 . . . . . . . . . . . . . . . . . . .

+ Nonrefundable Education Credits, Schedule 3 (Form 1040), line 3 . .

+ Retirement Savings Contributions Credit, Schedule 3 (Form 1040), line 4 . . . . . . . . . . . . . . . . . . . .

+ Energy efficient home improvement credit, Form 5695, line 30* . . . . . . . . . . . . . . . . . .

+ Alternative Motor Vehicle Credit, Personal use part, Form 8910, line 15 . . . . . . . . . . . . . . . . . . .

+ Qualified Plug-in Electric Drive Motor Vehicle Credit, Personal use part, Form 8936, line 23 . . . . . . .

+ Child tax credit and credit for other dependents, Form 1040, 1040-SR, or 1040-NR, line 19** . . . . . . . .

+ Mortgage Interest Credit, Form 8396, line 9 . . . . . . . . . . . . . . .

+ Adoption Credit, Form 8839, line 16 . . . . . . . . . . . . . . . . . . .

+ Carryforward of the District of Columbia First-Time Homebuyer Credit, Form 8859, line 3 . . . . . .

Note. Enter the total of the preceding credit(s)/adjustment(s), only if allowed and taken on your 2022 income tax return. Not all credits/adjustments are available for all years nor for all filers. See the instructions for your 2022 income tax return. 2. 3. Subtract line 2 from line 1. Also enter this amount on Form 5695, line 14. If zero or less, enter ‐0‐ on Form 5695, lines 14 and 15 . . . . 3. * If applicable. ** Include the amount from Schedule 8812 (Form 1040), Credit Limit Worksheet B, line 14, instead of the amount from Form 1040, 1040-SR, or 1040-NR, line 19, if the instructions for Schedule 8812 (Form 1040) direct you to complete Credit Limit Worksheet B. Manufacturer’s certification. For purposes of taking the credit, you can rely on the manufacturer’s certification, in writing, that a product is qualifying property for the credit. Don't attach the certification to your return. Keep it for your records. Line 16 If you can't use all of the credit because of the tax liability limit (that is, line 14 is less than line 13), you can carry the unused portion of the credit to 2023. File this form even if you can't use any of your credit in 2022. Part II Energy Efficient Home Improvement Credit Before you begin Part II. Figure the amount of the credits shown in the credit limitation worksheet if you take those credits on your return. Lines 17a Through 17c Line 17a. To qualify for the credit, any qualified energy efficiency improvements or residential energy property costs must have been for your main home located in the United States. See Main home, earlier. If you check the “No” box, you can't take the energy efficient home improvement credit. Line 17b. Enter the full address of your main home during 2022. Line 17c. You may only include expenses for qualified improvements for an existing home or for an addition or renovation to an existing home, and not for a newly constructed home. If you check the “Yes” box, you can't claim any expenses for qualified improvements that are related to the construction of your home, even if the improvement is installed after you have moved into the home. Line 18 If you took an energy efficient home improvement credit in 2006, 2007, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, or 2021, complete the following worksheet to figure the amount to enter on line 18. If the total of the credits on the worksheet is $500 or more, you generally can't take the energy efficient home improvement credit for 2022. -4- Instructions for Form 5695 (2022)

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Lifetime Limitation Worksheet—Line 18 1. Enter the amount, if any, from your 2006 Form 5695, line 12 . . . . . . . . . . . . . . . . . 1.

2. Enter the amount, if any, from your 2007 Form 5695, line 15 . . . . . . . . . . . . . . . . . 2.

3. Enter the amount, if any, from your 2009 Form 5695, line 11 . . . . . . . . . . . . . . . . . 3.

4. Enter the amount, if any, from your 2010 Form 5695, line 11 . . . . . . . . . . . . . . . . . 4.

5. Enter the amount, if any, from your 2011 Form 5695, line 14 . . . . . . . . . . . . . . . . . 5.

6. Enter the amount, if any, from your 2012 Form 5695, line 32 . . . . . . . . . . . . . . . . . 6.

7. Enter the amount, if any, from your 2013 Form 5695, line 30 . . . . . . . . . . . . . . . . . 7.

8. Enter the amount, if any, from your 2014 Form 5695, line 30 . . . . . . . . . . . . . . . . . 8.

9. Enter the amount, if any, from your 2015 Form 5695, line 30 . . . . . . . . . . . . . . . . . 9.

10. Enter the amount, if any, from your 2016 Form 5695, line 30 . . . . . . . . . . . . . . . . . 10.

11. Enter the amount, if any, from your 2017 Form 5695, line 30 . . . . . . . . . . . . . . . . . 11.

12. Enter the amount, if any, from your 2018 Form 5695, line 30 . . . . . . . . . . . . . . . . . 12.

13. Enter the amount, if any, from your 2019 Form 5695, line 30 . . . . . . . . . . . . . . . . . 13.

14. Enter the amount, if any, from your 2020 Form 5695, line 30 . . . . . . . . . . . . . . . . . 14.

15. Enter the amount, if any, from your 2021 Form 5695, line 30 . . . . . . . . . . . . . . . . . 15.

16. Add lines 1 through 15. Also enter this amount on Form 5695, line 18. If $500 or more, stop; you can't take the energy efficient home improvement credit . . . 16. Lines 19a Through 19h Note. A reference to the IECC is a reference to the 2009 International Energy Conservation Code as in effect (with supplements) on February 17, 2009. Don't include on lines 19a through 19d any amounts paid for the onsite preparation, assembly, or original installation of the components. CAUTION ! Line 19a. Enter the amounts you paid for any insulation material or system (including any vapor retarder or seal to limit infiltration) that is specifically and primarily designed to reduce the heat loss or gain of your home when installed in or on such home and meets the prescriptive criteria established by the IECC. A component isn't specifically and primarily designed to reduce the heat loss or gain of your home if it provides structural support or a finished surface (such as drywall or siding) or its principal purpose is to serve any function unrelated to the reduction of heat loss or gain. Line 19b. Enter the amounts you paid for exterior doors that meet or exceed the version 6.0 Energy Star program requirements. Line 19c. Enter the amounts you paid for a metal roof with the appropriate pigmented coatings or an asphalt roof with the appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home, and the roof meets or exceeds the Energy Star program requirements in effect at the time of purchase or installation. Line 19d. Enter the amounts you paid for exterior windows and skylights that meet or exceed the version 6.0 Energy Star program requirements. If you took the credit for windows in 2006, 2007, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, or 2021, you may not be able to include window expenses this year. Line 19f. If you reported expenses on your 2006 Form 5695, line 2b; 2007 Form 5695, line 2d; 2009 Form 5695, line 2b; 2010 Form 5695, line 2b; 2011 Form 5695, line 3d; 2012 Form 5695, line 21d; 2013 Form 5695, line 19d; 2014 Form 5695, line 19d; 2015 Form 5695, line 19d; 2016 Form 5695, line 19d; 2017 Form 5695, line 19d; 2018 Form 5695, line 19d; 2019 Form 5695, line 19d; 2020 Form 5695, line 19d, or 2021 Form 5695, line 19d, then use the worksheet next to figure the amount to enter on line 19f. CAUTION ! CAUTION ! Instructions for Form 5695 (2022) -5-

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Window Expense Worksheet—Line 19f 1. Enter the amount from your 2006 Form 5695, line 2b . . . 1.

2. Enter the amount from your 2007 Form 5695, line 2d . . . 2.

3. Enter the amount from your 2009 Form 5695, line 2b . . . 3.

4. Enter the amount from your 2010 Form 5695, line 2b . . . 4.

5. Add lines 3 and 4 . . . . . . . . 5.

6. Multiply line 5 by 3.0 . . . . . . 6.

7. Enter the amount from your 2011 Form 5695, line 3d . . . 7.

8. Enter the amount from your 2012 Form 5695, line 21d . . 8.

9. Enter the amount from your 2013 Form 5695, line 19d . . 9.

10. Enter the amount from your 2014 Form 5695, line 19d . . 10.

11. Enter the amount from your 2015 Form 5695, line 19d . . 11.

12. Enter the amount from your 2016 Form 5695, line 19d . . 12.

13. Enter the amount from your 2017 Form 5695, line 19d . . 13.

14. Enter the amount from your 2018 Form 5695, line 19d . . 14.

15. Enter the amount from your 2019 Form 5695, line 19d . . 15.

16. Enter the amount from your 2020 Form 5695, line 19d . . 16.

17. Enter the amount from your 2021 Form 5695, line 19d . . 17.

18. Add lines 1, 2, and 6 through 17. Also enter this amount on Form 5695, line 19f . . . . . . . 18. Manufacturer’s certification. For purposes of taking the credit, you can rely on a manufacturer’s certification in writing that a building envelope component is an eligible building envelope component. Don't attach the certification to your return. Keep it for your records. Lines 22a Through 22c Also include on lines 22a through 22c any labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. Line 22a. Enter the amounts you paid for energy-efficient building property. Energy-efficient building property is any of the following. • An electric heat pump water heater that yields a Uniform Energy Factor of at least 2.2 in the standard Department of Energy test procedure. • An electric heat pump that achieves the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) as in effect on January 1, 2009. • A central air conditioner that achieves the highest efficiency tier that has been established by the CEE as in effect on January 1, 2009. • A natural gas, propane, or oil water heater that has a Uniform Energy Factor of at least 0.82 or a thermal efficiency of at least 90%. Don't enter more than $300 on line 22a. TIP Line 22b. Enter the amounts you paid for a natural gas, propane, or oil furnace or hot water boiler that achieves an annual fuel utilization rate of at least 95. Don't enter more than $150 on line 22b. Line 22c. Enter the amounts you paid for an advanced main air circulating fan used in a natural gas, propane, or oil furnace that has an annual electricity use of no more than 2% of the total annual energy use of the furnace (as determined in the standard Department of Energy test procedures). Don't enter more than $50 on line 22c. Manufacturer’s certification. For purposes of taking the credit, you can rely on a manufacturer’s certification in writing that a product is qualified energy property. Don't attach the certification to your return. Keep it for your records. Line 25 If the rules discussed earlier for joint occupancy apply, cross out the preprinted $500 on line 25, and enter on line 25 the smaller of: 1. The amount on line 24, or 2. $500 multiplied by a fraction. The numerator is the amount on line 24. The denominator is the total amount from line 24 for all owners. For more details, see Joint occupancy, earlier. Line 29 Complete the worksheet below to figure the amount to enter on line 29. -6- Instructions for Form 5695 (2022)

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Energy Efficient Home Improvement Credit Limit Worksheet—Line 29 1. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18 . . 1.

2. Enter the total of the following credit(s)/adjustment(s) if you are taking the credit(s)/adjustment(s)on your 2022 income tax return: + Negative Form 8978 Adjustment, Schedule 3 (Form 1040), line 6l . . . . . . . . . . . . . . . . . . .

+ Foreign Tax Credit, Schedule 3 (Form 1040), line 1 . . . . . . . . . .

+ Credit for Child and Dependent Care Expenses, Schedule 3 (Form 1040), line 2 . . . . . . . . . . . . . . .

+ Credit for the Elderly or the Disabled, Schedule R (Form 1040), line 22 . . . . . . . . . . . . . . . . . . .

+ Nonrefundable Education Credits, Schedule 3 (Form 1040), line 3 . .

+ Retirement Savings Contributions Credit, Schedule 3 (Form 1040), line 4 . . . . . . . . . . . . . . . . . . . .

(i8936)Instructions for Form 8936 (Rev. January 2022), Qualified Plug-in Electric Drive Motor Vehicle Credit#

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Instructions for Form 8936 (Rev. January 2022) Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 8936 and its instructions, such as legislation enacted after they were published, go to IRS.gov/ Form8936. What’s New Credit for two-wheeled vehicles. The credit for qualified two-wheeled plug-in electric vehicles expired for vehicles acquired after 2021. However, if you acquired the two-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022. Do not report two-wheeled vehicles acquired after 2021 on Form 8936 unless the credit is extended. At the time these instructions went to print, Congress had not enacted legislation on expired provisions. To find out if legislation has been enacted, go to IRS.gov/Extenders. Reminder The credit is no longer available for Tesla or General Motors vehicles with at least four wheels. See Line 4b. General Instructions Purpose of Form Use Form 8936 to figure your credit for qualified plug-in electric drive motor vehicles you placed in service during your tax year. Also use Form 8936 to figure your credit for certain qualified two-wheeled plug-in electric vehicles discussed under What's New, earlier. The credit attributable to depreciable property (vehicles used for business or investment purposes) is treated as a general business credit. Any credit not attributable to depreciable property is treated as a personal credit. Partnerships and S corporations must file this form to claim the credit. All other taxpayers are not required to complete or file this form if their only source for this credit is a partnership or S corporation. Instead, they can report this credit directly on line 1y in Part III of Form 3800, General Business Credit. Which Revision To Use Use the January 2022 revision of Form 8936 for tax years beginning in 2021 or later, until a later revision is issued. Use prior revisions of the form for earlier tax years. All revisions are available at IRS.gov/Form8936. CAUTION ! Qualified Plug-in Electric Drive Motor Vehicle This is a new vehicle with at least four wheels that: • Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and • Has a gross vehicle weight of less than 14,000 pounds. Qualified Two-Wheeled Plug-in Electric Vehicle This is a new vehicle with two wheels that: • Is capable of achieving a speed of 45 miles per hour or greater, • Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2.5 kilowatt hours and is capable of being recharged from an external source of electricity, and • Has a gross vehicle weight of less than 14,000 pounds. Certification and Other Requirements Generally, you can rely on the manufacturer’s (or, in the case of a foreign manufacturer, its domestic distributor’s) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle. If, however, the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle acquired after the date of publication of the withdrawal announcement. If you acquired a vehicle and its certification was withdrawn on or after the date you acquired it, you can rely on such certification even if you had not placed the vehicle in service or claimed the credit by the date the withdrawal announcement was published by the IRS. The IRS will not attempt to collect any understatement of tax liability attributable to reliance on the certification as long as you acquired the vehicle on or before the date the IRS published the withdrawal announcement. The following requirements must be met to qualify for the credit. • You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit. • You placed the vehicle in service during your tax year. • The vehicle is manufactured primarily for use on public streets, roads, and highways. • The original use of the vehicle began with you. Sep 22, 2021 Cat. No. 67912V

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• You acquired the vehicle for use or to lease to others, and not for resale. • You use the vehicle primarily in the United States. Exception. If you are the seller of a qualified plug-in electric drive motor vehicle or qualified two-wheeled plug-in electric vehicle to a tax-exempt organization, governmental unit, or a foreign person or entity, and the use of that vehicle is described in section 50(b)(3) or (4), you can claim the credit, but only if you clearly disclose in writing to the purchaser the amount of the tentative credit allowable for the vehicle (from line 11 of Form 8936). Treat all vehicles eligible for this exception as business/ investment property. If you elect to claim the credit, you must reduce cost of goods sold by the amount you entered on line 11 for that vehicle. More information. For details, see the following. • Section 30D. • Notice 2009-89, 2009-48 I.R.B. 714, available at IRS.gov/irb/2009-48_IRB#NOT-2009-89. • Notice 2013-67, 2013-45 I.R.B. 470, available at IRS.gov/irb/2013-45_IRB#NOT-2013-67. • Notice 2016-51, 2016-37 I.R.B. 344, available at IRS.gov/irb/2016-37_IRB#NOT-2016-51. Credit Phaseout The credit for vehicles with at least four wheels is subject to a phaseout (reduction) once the vehicle manufacturer (or, for a foreign manufacturer, its U.S. distributor) sells 200,000 of these vehicles to a retailer for use in the United States after 2009. The phaseout begins in the second calendar quarter after the quarter in which the 200,000th vehicle was sold. Then the phaseout allows 50% of the full credit for 2 quarters, 25% of the full credit for 2 additional quarters, and no credit thereafter. Basis Reduction Unless you elect not to claim the credit, you may have to reduce the basis of each vehicle by the sum of the amounts entered on lines 11 and 18 for that vehicle. Coordination With Other Credits A vehicle that qualifies for the qualified plug-in electric drive motor vehicle credit on this form cannot be used to claim the alternative motor vehicle credit on Form 8910. Recapture of Credit If the vehicle no longer qualifies for the credit, you may have to recapture part or all of the credit. For details, see section 30D(f)(5). Specific Instructions Line 2 Enter the vehicle's vehicle identification number (VIN) on line 2. The VIN of a vehicle can be obtained from the registration, title, proof of insurance, or actual vehicle. Generally, the VIN is 17 characters made up of numbers and letters. Line 4a For two-wheeled vehicles, enter the cost of the vehicle you entered on line 1. For vehicles with at least four wheels, enter the credit allowable for the year, make, and model of vehicle you entered on line 1. You can generally rely on the manufacturer’s (or domestic distributor’s) certification to the IRS of the credit allowable as explained above. Tentative credit amounts acknowledged by the IRS are available at IRS.gov/pluginvehiclecreditamounts. For any vehicles subject to a reduced credit (discussed next), enter the original unreduced credit amount on line 4a. Line 4b Enter 100% unless the vehicle was a vehicle with at least four wheels manufactured by Tesla or General Motors (Chevrolet Bolt EV, etc.). Tesla. The credit is not available for Tesla vehicles acquired after December 31, 2019. For more information, see Notice 2018-96, 2018-52 I.R.B.1061, available at IRS.gov/irb/2018-52_IRB#NOT-2018-96. General Motors. The credit is not available for General Motors vehicles acquired after March 31, 2020. For more information, see Notice 2019-22, 2019-14 I.R.B. 931, available at IRS.gov/irb/2019-14_IRB#NOT-2019-22. Line 5 Enter the percentage of business/investment use. Enter 100% if the vehicle is used solely for business purposes or you are claiming the credit as the seller of the vehicle. If the vehicle is used for both business purposes and personal purposes, determine the percentage of business use by dividing the number of miles the vehicle is driven during the year for business purposes or for the production of income (not to include any commuting mileage) by the total number of miles the vehicle is driven for all purposes. Treat vehicles used by your employees as being used 100% for business/investment purposes if the value of personal use is included in the employees’ gross income, or the employees reimburse you for the personal use. If you report the amount of personal use of the vehicle in your employee’s gross income and withhold the appropriate taxes, enter “100%” for the percentage of business/investment use. If during the tax year you convert property used solely for personal purposes to business/investment use (or vice versa), figure the percentage of business/investment use only for the number of months you use the property in your business or for the production of income. Multiply that percentage by the number of months you use the property in your business or for the production of income and divide the result by 12. For example, if you converted a vehicle to 50% business use for the last 6 months of the year, you would enter 25% on line 5 (50% multiplied by 6 divided by 12). For more information, see Pub. 463, Travel, Gift, and Car Expenses. CAUTION ! -2- Instructions for Form 8936 (Rev. 1-2022)

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Line 7 Enter any section 179 expense deduction you claimed for the vehicle from Part I of Form 4562, Depreciation and Amortization. Line 13 Enter total qualified plug-in electric drive motor vehicle credits from: • Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., box 15 (code P); and • Schedule K-1 (Form 1120-S), Shareholder's Share of Income, Deductions, Credits, etc., box 13 (code P). Partnerships and S corporations report the above credits on line 13. All other filers figuring a separate credit on earlier lines also report the above credits on line 13. All others not using earlier lines to figure a separate credit can report the above credits directly on Form 3800, Part III, line 1y. Line 21 Enter the total, if any, credits from Schedule 3 (Form 1040), lines 1 through 4, 6d, 6e, and 6I; and Form 5695, line 30. Line 23 If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123 and is included in the estimates shown in the instructions for their individual and business income tax return. The estimated burden for all other taxpayers who file this form is shown below. Recordkeeping . . . . . . . . . . . . . . . . . . . 4 hr., 4 min. Learning about the law or the form . . . . . 35 min. Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. Instructions for Form 8936 (Rev. 1-2022) -3-

(p501)Publication 501 (2022), Dependents, Standard Deduction, and Filing Information#

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Contents What's New . . . . . . . . . . . . . . . . . . 1 Reminders . . . . . . . . . . . . . . . . . . . 1 Introduction . . . . . . . . . . . . . . . . . . 2 Who Must File . . . . . . . . . . . . . . . . . 2 Who Should File . . . . . . . . . . . . . . . 5 Filing Status . . . . . . . . . . . . . . . . . . 5 Dependents . . . . . . . . . . . . . . . . . 11 Social Security Numbers (SSNs) for Dependents . . . . . . . . . . . . . . 22 Standard Deduction . . . . . . . . . . . . 22 2022 Standard Deduction Tables . . . . 24 How To Get Tax Help . . . . . . . . . . . 26 Index . . . . . . . . . . . . . . . . . . . . . 29 What's New Who must file. In some cases, the amount of income you can receive before you must file a tax return has increased. Table 1 shows the fil- ing requirements for most taxpayers. Standard deduction increased. The stand- ard deduction for taxpayers who don't itemize their deductions on Schedule A (Form 1040) is higher for 2022 than it was for 2021. The amount depends on your filing status. You can use the 2022 Standard Deduction Tables near the end of this publication to figure your stand- ard deduction. Reminders Future developments. Information about any future developments affecting Pub. 501 (such as legislation enacted after we release it) will be posted at IRS.gov/Pub501. Taxpayer identification number for aliens. If you are a nonresident or resident alien and you don't have and aren't eligible to get a social security number (SSN), you must apply for an individual taxpayer identification number (ITIN). Your spouse may also need an ITIN if your spouse doesn't have and isn't eligible to get an SSN. See Form W-7, Application for IRS Indi- vidual Taxpayer Identification Number. Also see Social Security Numbers (SSNs) for Depend- ents, later. Photographs of missing children. The Inter- nal Revenue Service 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 rec- ognize a child. Department of the Treasury Internal Revenue Service Publication 501 Cat. No. 15000U Dependents, Standard Deduction, and Filing Information For use in preparing 2022 Returns Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Spanish (Español) • IRS.gov/Chinese (中文) • IRS.gov/Korean (한국어) • IRS.gov/Russian (Pусский) • IRS.gov/Vietnamese (Tiếng Việt) Dec 9, 2022

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Introduction This publication discusses some tax rules that affect every person who may have to file a fed- eral income tax return. It answers some basic questions: who must file, who should file, what filing status to use, and the amount of the stand- ard deduction. Who Must File explains who must file an in- come tax return. If you have little or no gross in- come, reading this section will help you decide if you have to file a return. Who Should File helps you decide if you should file a return, even if you aren't required to do so. Filing Status helps you determine which fil- ing status to use. Filing status is important in determining whether you must file a return and whether you may claim certain deductions and credits. It also helps determine your standard deduction and tax rate. Dependents explains the difference be- tween a qualifying child and a qualifying rela- tive. Other topics include the SSN requirement for dependents, the rules for multiple support agreements, and the rules for divorced or sepa- rated parents. Standard Deduction gives the rules and dol- lar amounts for the standard deduction—a ben- efit for taxpayers who don't itemize their deduc- tions. This section also discusses the standard deduction for taxpayers who are blind or age 65 or older, as well as special rules that limit the standard deduction available to dependents. In addition, this section helps you decide whether you would be better off taking the standard de- duction or itemizing your deductions. How To Get Tax Help explains how to get tax help from the IRS. This publication is for U.S. citizens and resi- dent aliens only. If you are a resident alien for the entire year, you must follow the same tax rules that apply to U.S. citizens. The rules to de- termine if you are a resident or nonresident alien are discussed in chapter 1 of Pub. 519. Nonresident aliens. If you were a nonresident alien at any time during the year, the rules and tax forms that apply to you may be different from those that apply to U.S. citizens. See Pub. 519. Comments and suggestions. We welcome your comments about this publication and sug- gestions 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 individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instruc- tions, and publications. Don’t send tax ques- tions, tax returns, or payments to the above ad- dress. Getting answers to your tax questions. If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS In- teractive 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, instructions, and pub- lications. Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications. Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instructions, and publica- tions; 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 al- ready sent us. You can get forms and publica- tions faster online. Useful Items You may want to see: Publication 559 Survivors, Executors, and Administrators 929 Tax Rules for Children and Dependents Form (and Instructions) 1040-X Amended U.S. Individual Income Tax Return 2848 Power of Attorney and Declaration of Representative 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent 8814 Parents' Election To Report Child's Interest and Dividends Who Must File If you are a U.S. citizen or resident alien, whether you must file a federal income tax re- turn depends on your gross income, your filing status, your age, and whether you are a de- pendent. For details, see Table 1 and Table 2. You must also file if one of the situations descri- bed in Table 3 applies. The filing requirements apply even if you owe no tax. 559 929 1040-X 2848 8332 8814 Table 1. 2022 Filing Requirements Chart for Most Taxpayers IF your filing status is... AND at the end of 2022 you were...* THEN file a return if your gross income was at least...** single under 65 $12,950 65 or older $14,700 head of household under 65 $19,400 65 or older $21,150 married filing jointly*** under 65 (both spouses) $25,900 65 or older (one spouse) $27,300 65 or older (both spouses) $28,700 married filing separately any age $5 qualifying surviving spouse under 65 $25,900 65 or older $27,300 * If you were born before January 2, 1958, you're considered to be 65 or older at the end of 2022. (If your spouse died in 2022, see Death of spouse, later. If you're preparing a return for someone who died in 2022, see Death of taxpayer, later. ** Gross income means all income you receive 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're married filing a separate return and you lived with your spouse at any time during 2022, 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 Form 1040 and 1040-SR instructions 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 2022 (or on the date your spouse died) and your gross income was at least $5, you must file a return regardless of your age. Page 2 Publication 501 (2022)

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You may have to pay a penalty if you are re- quired to file a return but fail to do so. If you will- fully fail to file a return, you may be subject to criminal prosecution. Gross income. Gross income is all income you receive in the form of money, goods, prop- erty, and services that isn't exempt from tax. If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. For a list of community property states, see Community property states under Married Filing Separately, later. Self-employed persons. If you are self-employed in a business that provides serv- ices (where products aren't a factor), your gross income from that business is the gross receipts. If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. In either case, you must add any income from invest- ments and from incidental or outside operations or sources. Filing status. Your filing status generally de- pends on whether you are single or married. Whether you are single or married is deter- mined at the end of your tax year, which is De- cember 31 for most taxpayers. Filing status is discussed in detail later in this publication. Age. Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. For 2022, you are 65 or older if you were born before January 2, 1958. Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. Dependents should see Table 2 instead. Deceased Persons You must file an income tax return for a dece- dent (a person who died) if both of the following are true. 1. Your spouse died, or you are the executor, administrator, or legal representative. 2. The decedent met the filing requirements described in this publication at the time of the decedent’s death. For more information, see Final Income Tax Return for Decedent—Form 1040 or 1040-SR in Pub. 559. Death of spouse. If your spouse died in 2022, read this before using Table 1 or Table 2 to find whether you must file a 2022 return. Consider your spouse to be 65 or older at the end of 2022 only if your spouse was 65 or older at the time of death. Even if your spouse was born before January 2, 1958, your spouse isn't considered 65 or older at the end of 2022 unless your spouse was 65 or older at the time of death. A person is considered to reach age 65 on the day before the person’s 65th birthday. Example. Your spouse was born on Febru- ary 14, 1957, and died on February 13, 2022. Your spouse is considered age 65 at the time of death. However, if your spouse died on Febru- ary 12, 2022, your spouse isn't considered age 65 at the time of death and is not 65 or older at the end of 2022. Death of taxpayer. If you are preparing a re- turn for someone who died in 2022, read this before using Table 1 or Table 2. Consider the taxpayer to be 65 or older at the end of 2022 only if the taxpayer was 65 or older at the time of death. Even if the taxpayer was born before January 2, 1958, the taxpayer isn't considered 65 or older at the end of 2022 unless the tax- payer was 65 or older at the time of death. A person is considered to reach age 65 on the day before the person’s 65th birthday. U.S. Citizens or Resident Aliens Living Abroad To determine whether you must file a return, in- clude in your gross income any income you earned or received abroad, including any in- come you can exclude under the foreign earned income exclusion. For more information on spe- cial tax rules that may apply to you, see Pub. 54. 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 whole year, your U.S. gross income doesn't include income from sources within Pu- erto Rico. It does, however, include any income you received for your services as an employee of the United States or any 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, which reduces the amount of income you can have before you must file a U.S. income tax return. For more information, see Pub. 570, Tax Guide for Individuals With Income From U.S. Possessions. Individuals With Income From U.S. Possessions 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 in- dividual possession government. See Pub. 570 for more information. Dependents A person who is a dependent may still have to file a return. It depends on the person’s earned income, unearned income, and gross income. For details, see Table 2. A dependent must also file if one of the situations described in Table 3 applies. Responsibility of parent. If a dependent child must file an income tax return but can't file due to age or any other reason, 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), pa- rent for minor child.” Earned income. Earned income includes sal- aries, wages, professional fees, and other amounts received as pay for work you actually perform. Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a taxable scholarship. See chapter 1 of Pub. 970 for more information on taxable and nontaxable scholarships. 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 parent is liable for the tax. Unearned income. Unearned income in- cludes income such as interest, dividends, and capital gains. Trust distributions of interest, divi- dends, capital gains, and survivor annuities are also considered unearned income. Election to report child's unearned income on parent's return. You may be able to in- clude your child's interest and dividend income on your tax return. If you do this, your child won't have to file a return. To make this elec- tion, all of the following conditions must be met. • Your child was under age 19 (or under age 24 if a student) at the end of 2022. (A child born on January 1, 2004, is considered to be age 19 at the end of 2022; you can't make the election for this child unless the child was a student. Similarly, a child born on January 1, 1999, is considered to be age 24 at the end of 2022; you can't make the election for this child.) • Your child had gross income only from in- terest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). • The interest and dividend income was less than $11,500. • Your child is required to file a return for 2022 unless you make this election. • Your child doesn't file a joint return for 2022. • No estimated tax payment was made for 2022 and no 2021 overpayment was ap- plied to 2022 under your child's name and SSN. • No federal income tax was withheld from your child's income under the backup with- holding rules. • You are the parent whose return must be used when making the election to report your child's unearned income. Publication 501 (2022) Page 3

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2022 Filing Requirements for Dependents See Dependents to find out if you are a dependent. If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. 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. Gross income is the total of your unearned and earned income. CAUTION ! If your gross income was $4,400 or more, you usually can't be claimed as a dependent unless you are a qualifying child. For details, see Dependents. Single dependents—Were you either age 65 or older or blind? No. You must file a return if any of the following apply. 1. Your unearned income was more than $1,150. 2. Your earned income was more than $12,950. 3. Your gross income was more than the larger of: a. $1,150, or b. Your earned income (up to $12,550) plus $400. Yes. You must file a return if any of the following apply. 1. Your unearned income was more than $2,900 ($4,650 if 65 or older and blind). 2. Your earned income was more than $14,700 ($16,450 if 65 or older and blind). 3. Your gross income was more than the larger of: a. $2,900 ($4,650 if 65 or older and blind), or b. Your earned income (up to $12,550) plus $2,150 ($3,900 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. 1. Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 2. Your unearned income was more than $1,150. 3. Your earned income was more than $12,950. 4. Your gross income was more than the larger of: a. $1,150, or b. Your earned income (up to $12,550) plus $400. Yes. You must file a return if any of the following apply. 1. Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 2. Your unearned income was more than $2,550 ($3,950 if 65 or older and blind). 3. Your earned income was more than $14,350 ($15,750 if 65 or older and blind). 4. Your gross income was more than the larger of: a. $2,550 ($3,950 if 65 or older and blind), or b. Your earned income (up to $12,550) plus $1,800 ($3,200 if 65 or older and blind). Table 2. Page 4 Publication 501 (2022)

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For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Pub. 929. Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. See Ta- ble 3 for those other situations when you must file. Who Should File Even if you don't have to file, you should file a tax return if you can get money back. For exam- ple, you should file if one of the following ap- plies. 1. You had income tax withheld from your pay. 2. You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. 3. You qualify for the earned income credit. See Pub. 596 for more information. 4. You qualify for the additional child tax credit. See the Instructions for Form 1040 for more information. 5. You qualify for the refundable American opportunity credit. See Form 8863. 6. You qualify for the credit for federal tax on fuels. See Form 4136. 7. You qualify for the premium tax credit. See Form 8962. Form 1099-B received. Even if you aren't re- quired to file a return, you should consider filing if all of the following apply. • You received a Form 1099-B, Proceeds From Broker and Barter Exchange Trans- actions (or substitute statement). • The amount in box 1d of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing require- ment in Table 1 or Table 2 that applies to you. • Box 1e of Form 1099-B (or substitute statement) is blank. In this case, filing a return may keep you from getting a notice from the IRS. Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. You also use your filing sta- tus to determine whether you are eligible to claim certain other deductions and credits. 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. 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. Table 3. Other Situations When You Must File a 2022 Return You must file a return if any of the conditions below apply. 1. You owe any special taxes reported on Schedule 2 (Form 1040), 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. Social security or 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. d. Uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. e. Household employment taxes. f. Recapture taxes. 2. You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account 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 Health Insurance 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). Publication 501 (2022) Page 5

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Divorce and remarriage. If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of di- vorce 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 amended returns (Form(s) 1040-X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. Generally, for a credit or re- fund, you must file Form(s) 1040-X within 3 years (including extensions) after 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 tax return early (for exam- ple, March 1), your return is considered 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 re- ceived it on July 1, your return is considered 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 a 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 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 le- gally separated under a decree of divorce 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 as married filing separately, your standard deduction will be higher and your tax may be lower. 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, 2022. Your filing status may be single if your spouse died before January 1, 2022, and you didn't remarry before the end of 2022. 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. On Form 1040 or 1040-SR, show your filing status as single by checking the “Single” box on the Filing Status line at the top of the form. Use the Single column of the Tax Table, or Sec- tion A of the Tax Computation Worksheet, 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 return. On a joint return, you and your spouse report 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. 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 at top of the form. Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, 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. If your spouse died in 2023 before filing a 2022 return, you can choose married filing jointly as your filing status on your 2022 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 TIP 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. 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 ap- ply even if your divorce decree states that your former 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 liability. 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, who are legally separated, or who 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 the kinds of re- lief 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 been appointed as executor or administrator, you can sign the return for your spouse and en- ter “Filing as surviving spouse” in the area where you sign the return. Page 6 Publication 501 (2022)

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Spouse away from home. If your spouse is away from home, you should prepare the re- turn, sign it, and send it to your spouse to sign so it can be filed on time. Injury or disease prevents signing. If your spouse can't sign because of injury or dis- ease and tells you to sign for them, you can sign your spouse's name in the proper space on the return 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, and it should state that your spouse has agreed to your sign- ing 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, Armed Forces' Tax Guide. Power of attorney (POA). In order for you to sign a return for your spouse in any of these cases, you must attach to the return a POA that authorizes you to sign for your spouse. You can use a POA that states that you have been gran- ted 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 during 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 chap- ter 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 later under Head of Household). This can apply to you even if you aren't divorced or legally separated. If you qualify to file as head of household, in- stead of as married filing separately, your tax may be lower, you may be able to claim certain tax benefits, and your standard deduction will be higher. The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deduc- tions. 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 separate returns). This way, you can make sure you are using the filing status that results in the lowest combined tax. When figuring the combined tax of a married couple, you may want to consider 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 at the top of Form 1040 or 1040-SR. En- ter your spouse's full name in the entry space at the bottom of the Filing Status section and enter your spouse's SSN or ITIN in the space for spouse's SSN on Form 1040 or 1040-SR. If your spouse doesn't have and isn't required to have an SSN or ITIN, enter “NRA” in the entry space below the filing status checkboxes. For electronic filing, enter the spouse's name or “NRA” if the spouse doesn't have an SSN or ITIN in the entry space below the filing status checkboxes. Use the Married filing separately column of the Tax Table, or Section C of the Tax Computation Worksheet, to figure your tax. 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 separa- ted or living apart from your spouse, you may be able to file a separate return and still take the credit. See What’s Your Filing Status? in Pub. 503, Child and Dependent Care Expenses, for more information. 4. You can't take the earned income credit unless you have a qualifying child and meet certain other requirements. TIP 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 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 basic standard deduction is half the amount allowed on a joint return. There are special rules that allow a separated spouse to claim the earned income credit under certain circum- stances. See the line 27 instructions in the In- structions for Form 1040 and Schedule EIC (Form 1040) to see if you meet the qualifica- tions to claim the earned income credit even though you are married filing a separate 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. 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 retire- ment plan at work during the year. Your deduc- tion is reduced or eliminated if your income is more than a certain amount. This amount is much lower for married individuals who file sep- arately and lived together at any time during the year. For more information, see How Much Can You Deduct? in chapter 1 of Pub. 590-A. 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 TIP Publication 501 (2022) Page 7

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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, Passive Activity and At-Risk Rules. Community property states. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 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. See Pub. 555. 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 income tax returns for a decedent. Head of Household You may be able to file as head of household if you meet all the following requirements. 1. You are unmarried or considered unmar- ried on the last day of the year. See Mari- tal Status, earlier, and Considered Unmar- ried, later. 2. You paid more than half the cost of keep- ing 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. TIP How to file. Indicate your choice of this filing status by checking the “Head of household” box on the Filing Status line at 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 Head of a household column of the Tax Table, or Section D of the Tax Computation 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 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 the cost of keep- ing up your home for the tax year. 3. Your spouse didn't live in your home dur- ing 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 Tem- porary absences, 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, 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 later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualify- ing Relative. The general rules for claiming a child as a dependent are explained later under Dependents. 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 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 cost of clothing, education, medical treatment, CAUTION ! Cost of Keeping Up a Home Worksheet 1. 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 the cost of keeping up the home. Page 8 Publication 501 (2022)

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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 4 to see who is a qualifying person. Any person not described in Table 4 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, later) and, because this child is single, your qualifying 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 later under Qualifying Child), your child isn't your qualifying child. Be- cause the child doesn't meet the gross income test (explained later under Qualifying Relative), the child isn't your qualifying relative. As a re- sult, this child isn't your qualifying person for head of household purposes. Example 3—your 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 later) 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, later. See Table 4. 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, later). As a result, your friend’s child isn't your qualifying person for head of household purposes. Home of qualifying person. Generally, the qualifying person must live with you for more than half of 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 the cost of keeping up a home that was the main home for the en- tire year for your parent. If you pay more than half the cost of keeping your parent in a rest home or home for the eld- erly, that counts as paying more than half 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 qualifying per- son who qualifies you for this filing status is born or dies during the year. To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. • Your qualifying child or qualifying relative who lived with you for more than half the part of the year they were alive. • Your parent for whom you paid, for the en- tire part of the year your parent was alive, more than half the cost of keeping up the home your parent lived in. Example. You are unmarried. Your parent, who you claim as a dependent, lived in an apartment alone. Your parent died on Septem- ber 2. The cost of the upkeep of the apartment for the year until your parent’s death was $6,000. You paid $4,000 and your sibling paid $2,000. Your sibling made no other payments toward your parent’s support. Your parent had no income. Because you paid more than half of the cost of keeping up your parent’s apartment from January 1 until your parent’s death, and you can claim your parent as a dependent, you can file as head of household. 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 person who qualifies you for this filing status was an adopted child or foster child and you kept up a home for this person in 2022, the per- son was lawfully placed with you for legal adop- tion by you in 2022, or the person was an eligi- ble foster child placed with you during 2022. The person is considered to have lived with you for more than half of 2022 if your main home was this person's main home for more than half the time since the child was adopted or placed with you in 2022. Kidnapped child. You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. You can claim head of household filing status if all the following statements are true. 1. The child is presumed by law enforcement authorities to have been kidnapped by someone who isn't a member of your fam- ily or the child's family. 2. In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. 3. In the year of the child’s return, the child lived with you for more than half the part of the year following the date of the child’s return. 4. You would have qualified for head of household filing status if the child hadn't been kidnapped. This treatment applies for all years until the earlier of: 1. The year there is a determination that the child is dead, or 2. The year the child would have reached age 18. Qualifying Surviving Spouse If your spouse died in 2022, you can use mar- ried filing jointly as your filing status for 2022 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 2021 and you haven't re- married, you may be able to use this filing sta- tus for 2022 and 2023. The rules for using this filing status are explained in detail here. 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 at the top of Form 1040 or 1040-SR. If the child who quali- fies 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 column of the Tax Table, or Section B of the Tax Compu- tation Worksheet, to figure your tax. Eligibility rules. You are eligible to file your 2022 return as a qualifying surviving spouse if you meet all the following tests. 1. 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. 2. Your spouse died in 2020 or 2021 and you didn't remarry before the end of 2022. 3. 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 2022: a. The child had gross income of $4,400 or more, b. The child filed a joint return, or c. You could be claimed as a dependent 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. 4. 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. Publication 501 (2022) Page 9

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5. You paid more than half the cost of keep- ing up a home for the year. See Keeping Up a Home, earlier, under Head of House- hold. Example. A's spouse died in 2020. A hasn’t remarried. A has continued during 2021 and 2022 to keep up a home for A and A’s child who lives with A and whom A can claim as a de- pendent. For 2020, A was entitled to file a joint return for A and A’s deceased spouse. For 2021 and 2022, A can file as a qualifying surviving spouse. After 2022, A can file as head of household if A qualifies. 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 2022 or was lawfully placed with you for legal adoption by you in 2022. The child is consid- ered to have lived with you for all of 2022 if your main home was this child's main home for the entire time since this child was adopted or placed with you in 2022. Kidnapped child. You may be eligible to file as a qualifying surviving spouse even if the child who qualifies you for this filing status has been kidnapped. You can claim qualifying sur- viving spouse filing status if all the following statements are true. 1. The child is presumed by law enforcement authorities to have been kidnapped by someone who isn't a member of your fam- ily or the child's family. 2. In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. 3. In the year of the child’s return, the child lived with you for more than half the part of the year following the date of the child’s return. 4. You would have qualified for qualifying surviving spouse filing status if the child had not been kidnapped. As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. CAUTION ! Who Is a Qualifying Person Qualifying You To File as Head of Household?1 CAUTION ! See the text of this publication 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)2 the child is single a qualifying person, whether or not the child meets the Citizen or Resident Test. 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.3 qualifying relative4 who is your father or mother you can claim your parent as a dependent5 a qualifying person.6 you can't claim your parent as a dependent not a qualifying person. qualifying relative4 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, later, and you can claim your relative as a dependent5 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, later, 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. 1 A person can't qualify more than one taxpayer to use the head of household filing status for the year. 2 The term “qualifying child” is defined under Dependents, later. 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, later. 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. 3 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. 4 The term “qualifying relative” is defined under Dependents, later. 5 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, later. 6 See Special rule for parent, earlier. Table 4. Page 10 Publication 501 (2022)

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Dependents The term “dependent” means: • A qualifying child, or • A qualifying relative. The terms “qualifying child” and “qualifying rela- tive” are defined later. All the requirements for claiming a depend- ent are summarized in Table 5. 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 informa- tion, see the Instructions for Form 1040. 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 the Instructions for Form 1040. 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 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 publication. • 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, a U.S. resident alien, a U.S. national, or a resident of Canada or Mexico.1 • 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, or 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.2 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 claim a refund of withheld income tax 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 household2 (and your relationship must not violate local law). 3. The person's gross income for the year must be less than $4,400.3 4. You must provide more than half of the person's total support for the year.4 1 There is an exception for certain adopted children. 2 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. 3 There is an exception if the person is disabled and has income from a sheltered workshop. 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Table 5. Publication 501 (2022) Page 11

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a dependent. Even if you have a qualifying child or qualifying relative, you can't claim that per- son 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 tax paid. 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 file a joint return only to get a refund of the withheld taxes. The exception to the joint return test applies, so you aren't dis- qualified from claiming each of them as a de- pendent just because they file a joint return. You can claim each of them as dependents 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 claiming the American opportunity credit is their reason for filing the return, they aren't fil- ing it only to get a refund of income tax withheld or estimated tax paid. The exception to the joint return test doesn't apply, so you can't claim ei- ther of them as a dependent. Citizen or Resident Test You generally can't claim a person as a de- pendent unless that person is a U.S. citizen, a U.S. resident alien, a U.S. national, or a resi- dent of Canada or Mexico. However, there is an exception for certain adopted children, as ex- plained 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 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 sis- ter, stepbrother, or stepsister, or a de- scendant (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 CAUTION ! 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. 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 your spouse. To be your qualifying child, a child who isn't permanently and totally disabled must be younger than you. However, if you are mar- ried 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 your 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 sibling’s support. Your sibling isn't disa- bled. Both you and your spouse are 21 years old, and you file a joint return. Your sibling isn't your qualifying 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. Page 12 Publication 501 (2022)

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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 indus- try 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 exceptions 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 the year if your home was the child's home more than half 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 fol- lowing 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 child or foster child. You can treat your adopted child or foster child as meeting the residency test as follows if you adopted the child in 2022, the child was lawfully placed with you for legal adoption by you in 2022, or the child was an eligible foster child placed with you during 2022. This child is considered to have lived with you for more than half of 2022 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 2022. Kidnapped child. You can treat your child as meeting the residency test even if the child has been kidnapped, but the following statements must be true. 1. The child is presumed by law enforcement authorities to have been kidnapped by someone who isn't a member of your fam- ily or the child's family. 2. In the year the kidnapping occurred, the child lived with you for more than half of the part of the year before the date of the kidnapping. 3. In the year of the child’s return, the child lived with you for more than half the part of the year following the date of the child’s return. This treatment applies for all years until the earlier of: 1. The year there is a determination that the child is dead, or 2. The year the child would have reached age 18. 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 2022 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 2022, 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 it begins. For example, the night of December 31, 2022, is treated as part of 2022. 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 would not have lived with either parent that night, the child is treated as not living with either parent that night. Publication 501 (2022) Page 13

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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 2022, 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 2022, 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 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 hospi- talized. 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 2022 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, 2022, until May 31, 2022, and lives with the child’s other parent, your ex-spouse, from June 1, 2022, through the end of the year. Your child turns 18 and is emancipated under state law on August 1, 2022. 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 2022. 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 2022, this re- lease allows the noncustodial parent to claim the child tax credit, credit for other dependents, or additional child tax credit, if applicable, for the child. The noncustodial parent must attach a copy of the form or statement to their tax re- turn. 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, and the noncustodial parent must attach a copy to their return. The form or statement must release the custodial parent's claim to the child without any conditions. For example, the release must not depend on the noncustodial parent paying sup- port. 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 release of claim to an exemption. For the revo- cation to be effective for 2022, the custodial pa- rent must have given (or made reasonable ef- forts to give) written notice of the revocation to the noncustodial parent in 2021 or earlier. The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to their return for each tax year the custodial parent claims the child as a depend- ent 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 rule for divorced or separated parents also applies to CAUTION ! parents who never married and 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 2 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. This child isn't your qualifying child. Foster care payments and expenses. Pay- ments you receive for the support of a foster 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 chari- table contributions but aren't considered sup- port you provided. For more information about the deduction for charitable contributions, see Pub. 526. If your unreimbursed expenses aren't deductible 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. L, a foster child, lived with mar- ried couple, A and B Smith, for the last 3 months of the year. The Smiths cared for L be- cause they wanted to adopt L (although L had not been placed with them for adoption). They didn't care for L as a trade or business or to benefit the agency that placed L in their home. The Smiths' unreimbursed expenses aren't de- ductible as charitable contributions but are con- sidered support they provided for L. 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 benefits, 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. TANF and other governmental payments. Under proposed Treasury regulations, if you Page 14 Publication 501 (2022)

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received Temporary Assistance to Needy Fami- lies (TANF) payments or other similar payments and used the payment to support another per- son, those payments are considered support you provided for that person, rather than sup- port provided by the government or other third party. Joint Return Test (To Be a Qualifying Child) To meet this test, the child can't file a joint re- turn 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 the 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 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 file a joint return only to get a refund of the withheld taxes. The exception to the 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 claiming the American opportunity credit is their reason for filing the return, they aren't filing it only to get a refund of income tax withheld or estimated tax paid. The exception 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 TIP CAUTION ! 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 tax 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. For purposes of these tiebreaker rules, the term “parent” means a biological or adoptive parent of an individual. It does not in- clude a stepparent or foster parent unless that person has adopted the individual. • 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 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 quali- fying child, the child is treated as the quali- fying child of the person who had the high- est 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 TIP old and unmarried, and your AGI is $9,000. Your parent's AGI is $15,000. Your child’s other parent didn't live with you or your child. You haven't signed Form 8832 (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 is higher than yours, you can allow your pa- rent to claim one or more of the children. For example, if you claim one child, your parent can claim the other two. Example 5—taxpayer who is a qualifying child. The facts are the same as in Example 1, except you are only 18 years old and didn't pro- vide more than half of your own support for the year. This means you are your parent's qualify- ing child. If your parent can claim you as a de- pendent, then you can't claim your child as a dependent because of the Dependent Tax- payer Test, explained earlier, unless your pa- rent 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 2022. On August 1, 2022, 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 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 Publication 501 (2022) Page 15

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Worksheet for Determining Support Worksheet 2. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter the amount on line 1 that was used for other purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the total amount in the person's savings and other accounts at the end of the year . . . . . . . . 4.

5. Add lines 2 through 4. (This amount should equal line 1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Enter the total amount of utilities (heat, light, water, etc., not included in line 6a or 6b) . . . . . . . . . . 8.

9. Enter the total amount of repairs (not included in line 6a or 6b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

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 the special rule for kidnapped children. See Multiple Support Agreement, Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart), or Kidnapped child under Qualifying Relative. Page 16 Publication 501 (2022)

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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 the exclusion for dependent care benefits (assuming you oth- erwise qualify for both 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. You can't claim the earned income credit be- cause you don't meet the requirements for cer- tain separated spouses to claim the earned in- come credit when they don’t file a joint return. You and your spouse didn't live apart for the last 6 months of 2022 and while you did live apart at the end of 2022, you aren't legally sep- arated under a written separation agreement or decree of separate maintenance. Therefore, you don't meet the requirements to take the earned income credit as a separated spouse who is not filing a joint return. You also can't take the credit for child and dependent care ex- penses because your fling status is married fil- ing separately and you and your spouse didn't live apart for the last 6 months of 2022. 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 2022, 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 another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent 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 sepa- rately. Your spouse can't claim the earned in- come 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 2022 and, while you did live apart at the end of 2022, you aren't legally separated under a written separation agreement or decree of separate maintenance. Therefore, your spouse doesn’t meet the requirements to take the earned income credit as a separated spouse who isn’t filing a joint return. Your spouse also can't take the credit for child and dependent care expenses because your spou- se’s filing status is married filing separately and you and your spouse didn't live apart for the last 6 months of 2022. 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 determine whether the custodial parent or another eligible person can treat the child as a qualifying child. The noncustodial parent may be able to claim the self-only earned income credit if they meet other requirements. See Pub. 596 and Schedule EIC and its instruc- tions for more information. TIP 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 $16,480. 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. Publication 501 (2022) Page 17

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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 can treat a child as your qualifying relative even if the child has been kidnapped, but the following statements must be true. 1. The child is presumed by law enforcement authorities to have been kidnapped by someone who isn't a member of your fam- ily or the child's family. 2. In the year the kidnapping occurred, the child met the tests to be your qualifying relative for the part of the year before the date of the kidnapping. 3. In the year of the child’s return, the child met the tests to be your qualifying relative for the part of the year following the date of the child’s return. This treatment applies for all years until the earlier of: 1. The year there is a determination that the child is dead, or 2. The year the child would have reached age 18. 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 be- cause 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 rel- ative 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 your home. Your friend has no gross income, isn't required to file a 2022 tax return, and doesn't file a 2022 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 because 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 sis- ter, 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 2016, you and your spouse began supporting your spouse’s unmarried pa- rent, G. Your spouse died in 2021. 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 of 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 Page 18 Publication 501 (2022)

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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. The test is also met for an adopted or foster child if you adopted the per- son in 2022, the person was lawfully placed with you for legal adoption by you in 2022, or the person was an eligible foster child placed with you during 2022 and your main home was the person’s main home for the entire time since the person was adopted or placed with you in 2022. 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. Gross Income Test To meet this test, a person's gross income for the year must be less than $4,400. Gross income defined. Gross income is all income in the form of money, property, and services 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 net) partnership income. 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 aren’t generally in- cluded in gross income. For more information about scholarships, see chapter 1 of Pub. 970. 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 serv- ices the individual performs at a sheltered work- shop. 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. possession, a political subdivision of a state or posses- sion, 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 2 helpful in figuring whether you provided more than half of a per- son'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 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 re- pay in a later year. If you use a fiscal year to report your in- come, you must provide more than half of the dependent'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 sup- port themselves and their sibling. If the allot- ment provides more than half of each person's support, you can claim each of them as a de- pendent, if they otherwise qualify, even though you authorize the allotment only for your surviv- ing parent. Tax-exempt military quarters allowan- ces. These allowances are treated the same way as dependency allotments in figuring sup- port. The allotment of pay and the tax-exempt basic allowance for quarters are both consid- ered 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 towards 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 the 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 college tuition. K is personally responsible for the loan. You provide $2,000 toward K’s total support. You can't claim K as a dependent be- cause you provide less than half of K’s support. Social security benefits. If spouses each receive 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 benefits, 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 Publication 501 (2022) Page 19

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for that person's support if it is shown that part of the payments weren't used for that purpose. TANF and other governmental pay- ments. Under proposed Treasury regulations, if you received TANF payments or other similar payments and used the payments to support another person, those payments are consid- ered support you provided for that person, rather than support provided by the government or other third party. Foster care. Payments you receive for the support 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 person's support, you must first determine the total support provided for that person. Total support includes amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and sim- ilar necessities. 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 rec- reation. 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 ($1,800 lodg- ing + $1,200 medical expenses + $1,040 food = $4,040) is more than half of G's $6,440 total 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. 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 support of $4,700. You meet the support test for B, but not for 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 aren't usually 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 to- tal fair rental value of a person's home that the person 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 person during the year can be included in total support under certain circumstances. The following examples show when a capi- tal 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 register it in your name. You and your 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. Because 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. Page 20 Publication 501 (2022)

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Medical insurance benefits. Medical in- surance benefits, including basic and supple- mentary Medicare benefits, aren't part of sup- port. 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 that 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, Multiple Support Declaration, can be used for this pur- pose. 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%, 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 re- turn 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 nei- ther has to sign a statement. 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. Example 3. Your parent lives with you and receives 25% of their support from social secur- ity, 40% from you, 24% from a relative, and 11% from a friend. Either you or the relative can claim your parent as a dependent if the other signs a statement agreeing not to. The one who claims your parent as a dependent must attach Form 2120, or a similar declaration, to your pa- rent’s return and must keep for your parent’s re- cords the signed statement from the one agree- ing not to claim your parent 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 requirements to be a qualifying child of either parent, the child may be a qualifying relative of one of the parents. In that case, the following rules must be used in applying the support test. A child who doesn’t meet the requirements to be a qualifying child of either parent will be treated as the qualifying relative of the child’s noncustodial parent if all four of the following statements 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 (and the rules on multiple support agreements, explained earlier, don't apply). 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 2022 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. Custodial parent and noncustodial parent. 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 noncus- todial parent. The term “parent” means a biolog- ical or adoptive parent of an individual. It doesn’t include a stepparent or foster parent unless that person has adopted the individual. 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 it begins. For example, the night of December 31, 2022, is treated as part of 2022. Emancipated child. If a child is emancipa- ted under state law, the child is not under the custody of either parent and time lived with a parent after emancipation does not count for purposes of determining who is the custodial parent. Publication 501 (2022) Page 21

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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. But if it can't be determined with which parent the child normally would have lived or if the child wouldn't have lived with ei- ther 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. 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 2022, this re- lease allows the noncustodial parent to claim the child tax credit, credit for other dependents, or additional child tax credit, if applicable, based on the child being a qualifying child. The noncustodial parent must attach 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 to the tax return instead of Form 8332 if the decree or agreement went into effect after 2008. The cus- todial parent must sign either Form 8332 or a similar statement whose only purpose is to re- lease the custodial parent's claim to an exemp- tion, and the noncustodial parent must attach a copy to their return. The form or statement must release 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 release of claim to an exemption that they previ- ously released to the noncustodial parent. For the revocation to be effective for 2022, the cus- todial parent must have given (or made reason- able efforts to give) written notice of the revoca- tion to the noncustodial parent in 2021 or earlier. The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to their return for each tax year the custodial parent claims the child as a dependent as a result of the revocation. Remarried parent. If you remarry, the support provided by your new spouse is treated as pro- vided by you. Child support under pre-1985 agreement. All child support payments actually received from the noncustodial parent under a pre-1985 agreement are considered used for the support of the child. Example. Under a pre-1985 agreement, the noncustodial parent provides $1,200 for the child's support. This amount is considered sup- port provided by the noncustodial parent even if the $1,200 was actually spent on things other than support. Alimony. Payments to a spouse that are alimony or separate maintenance payments, or similar payments from an estate or trust, aren't treated as a payment for the support of a de- pendent. Parents who never married. This special rule for divorced or separated parents also applies to parents who never married and lived apart at all times during the last 6 months of the year. Multiple support agreement. If the support of the child is determined under a multiple support agreement, this special support test for di- vorced or separated parents (or parents who live apart) doesn't apply. 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 CAUTION ! CAUTION ! 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, Application for Automatic Extension of Time To File U.S. Indi- vidual Income Tax Return, for an extension of time to file. Born and died in 2022. If your child was born and died in 2022, 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 ITIN or adoption taxpayer identification 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. 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. Standard Deduction Most taxpayers have a choice of either taking a standard deduction or itemizing their deduc- tions. 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 item- ized deductions. Persons not eligible for the standard de- duction. Your standard deduction is zero and you should itemize any deductions you have if: 1. Your filing status is married filing sepa- rately, and your spouse itemizes deduc- tions on your spouse’s return; TIP Page 22 Publication 501 (2022)

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2. You are filing a tax return for a short tax year because of a change in your annual accounting period; or 3. You are a nonresident or dual-status alien during the year. You are considered a dual-status alien if you were both a non- resident 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. 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 6. 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 birthday. Therefore, you can take a higher standard deduction for 2022 if you were born before January 2, 1958. Use Table 7 to figure the standard deduction amount. Death of taxpayer. If you are preparing a re- turn for someone who died in 2022, consider the taxpayer to be 65 or older at the end of 2022 only if the taxpayer was 65 or older at the time of death. Even if the taxpayer was born be- fore January 2, 1958, the taxpayer isn't consid- ered 65 or older at the end of 2022 unless the taxpayer was 65 or older at the time of death. A person is considered to reach age 65 on the day before the person’s 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) stating that: CAUTION ! 1. You can't see better than 20/200 in the better eye with glasses or contact lenses, or 2. 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: 1. You file a joint return, or 2. 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 spouse. If your spouse died in 2022 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, 1958, your spouse isn’t considered 65 or older at the end of 2022 unless your spouse was 65 or older at the time of death. A person is considered to reach age 65 on the day before the person’s 65th birthday. Example. Your spouse was born on Febru- ary 14, 1957, and died on February 13, 2022. Your spouse is considered age 65 at the time of death. However, if your spouse died on Febru- ary 12, 2022, your spouse isn't considered age 65 at the time of death and isn't 65 or older at the end of 2022. You can't claim the higher standard de- duction for an individual other than yourself and your spouse. Examples The following examples illustrate how to deter- mine your standard deduction using Table 6 and Table 7. Example 1. L, 46, and D, 33, are filing a joint return for 2022. Neither is blind, and nei- ther can be claimed as a dependent. They de- cide not to itemize their deductions. They use Table 6. Their standard deduction is $25,900. Example 2. The facts are the same as in Example 1, except that L is blind at the end of 2022. L and D use Table 7. Their standard de- duction is $27,300. Example 3. B and L are filing a joint return for 2022. Both are over age 65. Neither is blind, and neither can be claimed as a dependent. If they don't itemize deductions, they use Table 7. Their standard deduction is $28,700. CAUTION ! 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. $1,150, or 2. The individual's earned income for the year plus $400 (but not more than the reg- ular standard deduction amount, generally $12,950). 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 8 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. M is 16 years old and single. M’s parents can claim M as a dependent on their 2022 tax return. M has interest income of $780 and wages of $150. M has no itemized deductions and uses Table 8 to find M’s stand- ard deduction. M enters $150 (earned income) on line 1, $550 ($150 + $400) on line 3, $1,150 (the larger of $550 and $1,150) on line 5, and $12,950 on line 6. M’s standard deduction, on line 7a, is $1,150 (the smaller of $1,150 and $12,950). Example 2. J, a 22-year-old college stu- dent, can be claimed as a dependent on J’s pa- rents' 2022 tax return. J is married and files a separate return. J’s spouse doesn't itemize de- ductions. J has $1,500 in interest income and wages of $3,800 and no itemized deductions. J finds J’s standard deduction by using Table 8. J enters earned income of $3,800 on line 1. J adds lines 1 and 2 and enters $4,200 on line 3. On line 5, J enters $4,200, the larger of lines 3 and 4. Because J is married filing a separate re- turn, J enters $12,950 on line 6. On line 7a, J enters $4,200 as the standard deduction amount because it is smaller than $12,950, the amount on line 6. Example 3. A, who is single, can be claimed as a dependent on A’s parents' 2022 tax return. A is 18 years old and blind, and has interest income of $1,300, wages of $2,900, and no itemized deductions. A uses Table 8 to find the standard deduction amount. A enters wages of $2,900 on line 1 and adds lines 1 and 2 and enters $3,300 on line 3. On line 5, A en- ters $3,300, the larger of lines 3 and 4. Because A is single, A enters $12,950 on line 6. A enters $3,300 on line 7a. This is the smaller of the amounts on lines 5 and 6. Because A checked one box in the top part of the worksheet, A en- ters $1,750 on line 7b, then adds the amounts Publication 501 (2022) Page 23

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on lines 7a and 7b and enters the standard de- duction amount of $5,050 on line 7c. Example 4. E is 18 years old and single and can be claimed as a dependent on E’s pa- rents’ 2022 tax return. E has wages of $7,000, interest income of $500, a business loss of $3,000, and no itemized deductions. E uses Ta- ble 8 to figure the standard deduction amount. E enters $4,000 ($7,000 − $3,000) on line 1, adds lines 1 and 2, and enters $4,400 on line 3. On line 5, E enters $4,400, the larger of lines 3 and 4, and, because E is single, $12,950 on line 6. On line 7a, E enters $4,400 as the stand- ard deduction amount because it is smaller than $12,950, the amount on line 6. Who Should Itemize You should itemize deductions if your total de- ductions are more than the standard deduction amount. Also, you should itemize if you don't qualify for the standard deduction, as dis- cussed, earlier, under Persons not eligible for the standard deduction. You should first figure your itemized deduc- tions and compare that amount to your stand- ard 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: 1. Don't qualify for the standard deduction, 2. Had large uninsured medical and dental expenses during the year, 3. Paid interest and taxes on your home, 4. Had large uninsured casualty or theft los- ses, 5. Made large contributions to qualified chari- ties, or 6. Have total itemized deductions that are more than the standard deduction to which you are otherwise entitled. 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 take 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. 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 the other spouse won't qualify for the standard deduction. See Persons not eligible for the standard deduction, earlier. 2022 Standard Deduction Tables If you are married filing a separate re- turn and your spouse itemizes deduc- tions, or if you are a dual-status alien, you can't take the standard deduction even if you were born before January 2, 1958, or are blind. CAUTION ! Standard Deduction Chart for Most People* Table 6. IF your filing status is... YOUR standard deduction is... Single or Married filing separately $12,950 Married filing jointly or Qualifying surviving spouse 25,900 Head of household 19,400 * Don't use this chart if you were born before January 2, 1958, or are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. Use Table 7 or Table 8 instead. Page 24 Publication 501 (2022)

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Standard Deduction Chart for People Born Before January 2, 1958, or Who Are Blind* Table 7. Check the correct number of boxes below. Then go to the chart. You: Born before January 2, 1958

Blind Your spouse: Born before January 2, 1958

Blind Total number of boxes you checked IF your filing status is... AND the number in the box above is... THEN your standard deduction is... Single 1 $14,700 2 16,450 Married filing jointly 1 $27,300 2 28,700 3 30,100 4 31,500 Qualifying surviving spouse 1 $27,300 2 28,700 Married filing separately** 1 $14,350 2 15,750 3 17,150 4 18,550 Head of household 1 $21,150 2 22,900 * If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 8 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 tax return. Publication 501 (2022) Page 25

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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 8. Keep for Your Records Check the correct number of boxes below. Then go to the worksheet. You: Born before January 2, 1958 Blind Your spouse: Born before January 2, 1958 Blind Total number of boxes you checked 1. Enter your earned income (defined below). If none, enter -0-. 1.

2. Additional amount. 2. $400 3. Add lines 1 and 2. 3.

4. Minimum standard deduction. 4. $1,150 5. Enter the larger of line 3 or line 4. 5.

6. Enter the amount shown below for your filing status. • Single or Married filing separately—$12,950 • Married filing jointly—$25,900 • Head of household—$19,400 6.

7. Standard deduction. a. Enter the smaller of line 5 or line 6. If born after January 1, 1958, and not blind, stop here. This is your standard deduction. Otherwise, go on to line 7b. 7a.

b. If born before January 2, 1958, or blind, multiply $1,750 ($1,400 if married) by the number in the box above. 7b.

c. Add lines 7a and 7b. This is your standard deduction for 2022. 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. How To Get Tax Help If you have questions about a tax issue; need help preparing your tax return; or want to down- load free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away. Preparing and filing your tax return. After receiving all your wage and earnings state- ments (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return. Free options for tax preparation. Go to IRS.gov to see your options for preparing and filing your return online or in your local commun- ity, if you qualify, which include the following. • Free File. This program lets you prepare and file your federal individual income tax return for free using brand-name tax-prep- aration-and-filing software or Free File fillable forms. However, state tax prepara- tion may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax prepara- tion, e-filing, and direct deposit or payment options. • VITA. The Volunteer Income Tax Assis- tance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, 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 offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE, download the free IRS2Go app, or call 888-227-7669 for information on free tax return preparation. • MilTax. Members of the U.S. Armed Forces and qualified veterans may use Mil- Tax, a free tax service offered by the De- partment of Defense through Military One- Source. For more information, go to MilitaryOneSource (MilitaryOneSource.mil/ MilTax). Also, the IRS offers Free Fillable Forms, which can be completed online and then filed electronically regardless of in- come. Using online tools to help prepare your re- turn. 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 estimate the federal income tax you want your em- ployer to withhold from your paycheck. This is tax withholding. See how your with- holding affects your refund, take-home pay, or tax due. • The First-Time Homebuyer Credit Account Look-up (IRS.gov/HomeBuyer) tool pro- vides information on your repayments and account balance. • The Sales Tax Deduction Calculator (IRS.gov/SalesTax) figures the amount you can claim if you itemize deductions on Schedule A (Form 1040). Page 26 Publication 501 (2022)

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Getting answers to your tax ques- tions. 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 answers on a number of tax law topics. • IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax changes and interac- tive links to help you find answers to your questions. • You may also be able to access tax law in- formation in your electronic filing software. Need someone to prepare your tax return? There are various types of tax return preparers, including enrolled agents, certified public ac- countants (CPAs), accountants, and many oth- ers who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is: • Primarily responsible for the overall sub- stantive accuracy of your return, • Required to sign the return, and • Required to include their preparer tax iden- tification number (PTIN). Although the tax preparer always signs the return, you're ultimately responsible for provid- ing all the information required for the preparer to accurately prepare your return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax pre- parer, go to Tips for Choosing a Tax Preparer on IRS.gov. Coronavirus. Go to IRS.gov/Coronavirus for links to information on the impact of the corona- virus, as well as tax relief available for individu- als and families, small and large businesses, and tax-exempt organizations. Employers can register to use Business Services Online. The Social Security Adminis- tration (SSA) offers online service at SSA.gov/ employer for fast, free, and secure online W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement. IRS social media. Go to IRS.gov/SocialMedia to see the various social 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 highest priority. We use these tools to share public information with you. Don’t post your so- cial security number (SSN) or other confidential information on social media sites. Always pro- tect your identity when using any social net- working site. The following IRS YouTube channels pro- vide short, informative videos on various tax-re- lated topics in English, Spanish, and ASL. • Youtube.com/irsvideos. • Youtube.com/irsvideosmultilingua. • Youtube.com/irsvideosASL. Watching IRS videos. The IRS Video portal (IRSVideos.gov) contains video and audio pre- sentations for individuals, small businesses, and tax professionals. Online tax information in other languages. You can find information on IRS.gov/ MyLanguage if English isn’t your native lan- guage. Free Over-the-Phone Interpreter (OPI) Serv- ice. The IRS is committed to serving our multi- lingual customers by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), other IRS offices, and every VITA/TCE return site. The OPI Service is accessible in more than 350 languages. Accessibility Helpline available for taxpay- ers with disabilities. Taxpayers who need in- formation about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). The Accessibility Help- line does not have access to your IRS account. For help with tax law, refunds, or account-rela- ted issues, go to IRS.gov/LetUsHelp. Note. Form 9000, Alternative Media Prefer- ence, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats. • Standard Print. • Large Print. • Braille. • Audio (MP3). • Plain Text File (TXT). • Braille Ready File (BRF). Disasters. Go to Disaster Assistance and Emergency Relief for Individuals and Businesses to review the available disaster tax relief. Getting tax forms and publications. Go to IRS.gov/Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/ OrderForms to place an order. Getting tax publications and instructions in eBook format. You can also download and view popular tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks. Note. IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as in- tended. 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 or view 5 years of pay- ment history and any pending or sched- uled payments. • Access your tax records, including key data from your most recent tax return, 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. Tax Pro Account. This tool lets your tax pro- fessional submit an authorization request to ac- cess your individual taxpayer IRS online account. For more information, go to IRS.gov/ TaxProAccount. Using direct deposit. The fastest way to re- ceive a tax refund is to file electronically and choose direct deposit, which securely and elec- tronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to re- ceive their refunds. If you don’t have a bank ac- count, go to IRS.gov/DirectDeposit for more in- formation on where to find a bank or credit union that can open an account online. Getting a transcript of your return. The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts. Click on either “Get Transcript Online” or “Get Transcript by Mail” to order a free copy of your transcript. If you prefer, you can order your transcript by call- ing 800-908-9946. Reporting and resolving your tax-related identity theft issues. • Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be af- fected if your SSN is used to file a fraudu- lent return or to claim a refund or credit. • The IRS doesn’t initiate contact with tax- payers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify per- sonal or financial information. This in- cludes requests for personal identification numbers (PINs), passwords, or similar in- formation for credit cards, banks, or other financial accounts. • Go to IRS.gov/IdentityTheft, the IRS Iden- tity Theft Central webpage, for information on identity theft and data security protec- tion for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take. • Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to tax- payers to help prevent the misuse of their Publication 501 (2022) Page 27

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SSNs on fraudulent federal income tax re- turns. When you have an IP PIN, it pre- vents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN. Ways to check on the status of your refund. • Go to IRS.gov/Refunds. • Download the official IRS2Go app to your mobile device to check your refund status. • Call the automated refund hotline at 800-829-1954. Note. The IRS can’t issue refunds before mid-February for returns that claimed the EIC or the additional child tax credit (ACTC). This ap- plies to the entire refund, not just the portion as- sociated with these credits. Making a tax payment. Go to IRS.gov/ Payments for information on how to make a payment using any of the following options. • IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you. • Debit or Credit Card: Choose an approved payment processor to pay online or by phone. • Electronic Funds Withdrawal: Schedule a payment when filing your federal taxes us- ing tax return preparation software or through a tax professional. • Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required. • Check or Money Order: Mail your payment to the address listed on the notice or in- structions. • Cash: You may be able to pay your taxes with cash at a participating retail store. • Same-Day Wire: You may be able to do same-day wire from your financial institu- tion. Contact your financial institution for availability, cost, and time frames. Note. The IRS uses the latest encryption technology to ensure that the electronic pay- ments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, easy, and faster than mailing in a check or money or- der. What if I can’t pay now? Go to IRS.gov/ Payments for more information about your op- tions. • Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive imme- diate notification of whether your agree- ment has been approved. • Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compro- mise program, go to IRS.gov/OIC. Filing an amended return. Go to IRS.gov/ Form1040X for information and updates. Checking the status of your amended re- turn. Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns. Note. It can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks. Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter. Note. You can use Schedule LEP (Form 1040), Request for Change in Language Prefer- ence, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that is scheduled to begin providing translations in 2023. You will continue to receive communi- cations, including notices and letters, in English until they are translated to your preferred lan- guage. Contacting your local IRS office. Keep in mind, many questions can be answered on IRS.gov without visiting an IRS TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be han- dled online or by phone. All TACs now provide service by appointment, so you’ll know in ad- vance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and ap- pointment options. Or, on the IRS2Go app, un- der the Stay Connected tab, choose the Con- tact Us option and click on “Local Offices.” The Taxpayer Advocate Service (TAS) Is Here To Help You What Is TAS? TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and under- stand your rights under the Taxpayer Bill of Rights. How Can You Learn About Your Taxpayer Rights? The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. What Can TAS Do for You? TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do every- thing possible to resolve your issue. TAS can help you if: • Your problem is causing financial difficulty for you, your family, or your business; • You face (or your business is facing) an immediate threat of adverse action; or • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised. How Can You Reach TAS? TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advo- cate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877-777-4778. How Else Does TAS Help Taxpayers? TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, report it to them at IRS.gov/ SAMS. TAS for Tax Professionals TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice. Low Income Taxpayer Clinics (LITCs) LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, LITCs can pro- vide information about taxpayer rights and re- sponsibilities in different languages for individu- als who speak English as a second language. Services are offered for free or a small fee for eligible taxpayers. To find an LITC near you, go to TaxpayerAdvocate.IRS.gov/about-us/Low- Income-Taxpayer-Clinics-LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List. Page 28 Publication 501 (2022)

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To help us develop a more useful index, please let us know if you have ideas for index entries. See “Comments and Suggestions” in the “Introduction” for the ways you can reach us. Index

A Abroad, citizens living, filing requirements 3 Absence, temporary 9, 13, 18 Accounting periods, joint returns 6 Adopted child 12, 19 Taxpayer identification number 22 Advance payment of premium tax credit 5 Age: Filing status determination 3 Gross income and filing requirements (Table 1) 2 Standard deduction for age 65 or older 23 Test 12 Aliens: Dual-status (See Dual-status taxpayers) Nonresident (See Nonresident aliens) Alimony 22 Alternative minimum tax (AMT), effect on filing requirements (Table 3) 5 Amended returns 8, 24 (See also Form 1040-X) Change from itemized to standard deduction (or vice versa) 24 American citizens abroad 3 Annulled marriages, filing status 6 Armed forces: Combat zone, signing return for spouse 7 Dependency allotments 19 GI Bill benefits 21 Military quarters allotments 19 Assistance (See Tax help) ATINs (Adoption taxpayer identification numbers) 22 B Birth of child 9 Blind persons, standard deduction 23 C Canada, resident of 12, 18 Capital expenses 20 Child born alive 13 Child care expenses 21 Child custody 13 Child support under pre-1985 agreement 22 Child tax credit 11 Child, qualifying 12 Children: Adopted child (See Adoption) Adoption (See Adopted child) Birth of child 9, 10 Claiming parent, when child is head of household 9 Custody of 13 Death of child 9, 10 Dividends of 3 Filing requirements as dependents (Table 2) 4 Investment income of child under age 18 3, 4 Kidnapped 13, 18 Social security number 22 Stillborn 13 Church employees, filing requirements (Table 3) 5 Citizen or resident test 12 Citizens outside U.S., filing requirements 3 Common law marriage 6 Community property states 8 Cousin 19 Credit, premium tax 5 Custody of child 13 D Death: Of child 13 Of dependent 9, 18 Of spouse 3, 6, 18, 23 Of taxpayer 3, 23 Decedents 6, 23 (See also Death of spouse) Filing requirements 3 Deductions: Standard deduction 22 Dependent taxpayer test 11 Dependents 11 Birth of 18 Born and died within year 22 Child's earnings 3 Death of 18 Earned income 3 Filing requirements 3, 4 Married, filing joint return 12, 15 Not allowed to claim dependents 11 Qualifying child 12 Qualifying relative 17 Social security number 22 Standard deduction for 23 Unearned income 3 Disabled: Child 13 Dependent 19 Divorced parents 13 Divorced taxpayers: Child custody 13 Filing status 5, 6 Joint returns, responsibility for 6 Domestic help 11 Dual-status taxpayers: Joint returns not available 7 E Earned income: Defined for purposes of standard deduction 23 Dependent filing requirements (Table 2) 4 Earned income credit: Two persons with same qualifying child 15 Elderly persons: Home for the aged 20 Standard deduction for age 65 or older 23 Equitable relief, Innocent spouse 6 F Fair rental value 20 Figures (See Tables and figures) Filing requirements 2-5 Filing status 5-10 Annulled marriages 6 Change to: Joint return after separate returns 8 Separate returns after joint return 8, 9 Determination of 3, 5 Head of household 6, 8 Marital status, determination of 5 Married filing jointly (See Joint returns) Married filing separately (See Married filing separately) Unmarried persons (See Single taxpayers) Food benefits 19 Foreign employment, filing requirements 3 Foreign students 12 Form 1040 or 1040-SR: Social security numbers 22 Use of 7 Form 1040-X: Change of filing status 8 Itemized deductions, change to standard deduction 24 Standard deduction, change to itemized deductions 24 Form 1095-A 5 Form 1099-B 5 Form 8814, parents' election to report child's interest and dividends 3 Form 8857, innocent spouse relief 6 Form SS-5, social security number request 22 Form W-7, individual taxpayer identification number request 22 Form W-7A, adoption taxpayer identification number request 22 Foster care payments and expenses 14, 20 Foster child 12, 14, 18, 20 Funeral expenses 21 G GI Bill benefits 21 Gross income: Defined 3 Filing requirements (Table 1) 2 Dependent filing requirements (Table 2) 4 Test 19 Group-term life insurance 5 H Head of household 8, 9 Filing requirements (Table 1) 2 Health insurance premiums 20 Home: Aged, home for 20 Cost of keeping up 8 Household workers 11 I Income: Gross 19 Tax exempt 19 Individual retirement arrangements (IRAs): Filing requirements (Table 3) 5 Married filing separately 7 Individual taxpayer identification numbers (ITINs) 1, 22 Innocent spouse relief 6 Insurance premiums: Life 21 Medical 20 IRAs (See Individual retirement arrangements (IRAs)) Itemized deductions: Changing from standard to itemized deduction (or vice versa) 24 Choosing to itemize 24 Married filing separately 24 When to itemize 24 ITINs (Individual taxpayer identification numbers) 22 J Joint return test 12, 15 Joint returns 6, 7 Dependents on 18 K Kidnapped children 10 Qualifying child 13 Qualifying relative 18 L Life insurance premiums 21 Local income taxes, itemized deductions 24 Local law violated 19 Lodging 20 Losses, rental real estate 7 M Marital status, determination of 5 Married dependents, filing joint return 12, 15 Married filing jointly (See Joint returns) Married filing separately 7 Changing method from or to itemized deductions 24 Itemized deductions 24 Married taxpayers 6 (See also Joint returns) Age 65 or older spouse, standard deduction 23 Blind spouse, standard deduction 23 Dual-status alien spouse 7 Filing status 6 Medical insurance premiums 20 Publication 501 (2022) Page 29

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Medical savings accounts (MSAs, effect on filing requirements (Table 3) 5 Medicare taxes, not support 21 Member of household or relationship test 18 Mexico, resident of 12, 18 Military (See Armed forces) Missing children, photographs of in IRS publications 1 Multiple support agreement 21 N National of the United States 12 Nonresident aliens 2 Dependents 22 Joint return 7 Spouse 8 Taxpayer identification number 22 P Parent, claiming head of household for 9 Parents who never married 14 Parents, divorced or separated 13 Penalty, failure to file 3 Photographs of missing children in IRS publications 1 Premium tax credit 5 Publications (See Tax help) Puerto Rico, residents of 3 Q Qualifying: Child 12 Relative 17 Surviving spouse 9 R Recapture taxes 5 Relationship test 12, 18 Relative, qualifying 17 Remarriage after divorce 6 Rental losses 7 Residency test 13 S Scholarships 3, 14, 19, 21, 23 Self-employed persons: Filing requirements (Table 3) 5 Gross income 3 Separate returns (See Married filing separately) Separated parents 13 Separated taxpayers: Filing status 6 Living apart but not legally separated 6 Signatures, joint returns 6 Single taxpayers: Filing status 5, 6 Gross income filing requirements (Table 1) 2 Social security and Medicare taxes: Reporting of (Table 3) 5 Support, not included in 21 Social security benefits 19 Social security numbers (SSNs) for dependents 22 Spouse: Deceased 6 Dual-status alien spouse 7 Innocent spouse relief 6 Nonresident alien 8 Signing joint returns 6 Surviving (See Surviving spouse) SSNs (See Social security numbers (SSNs) for dependents) Standard deduction 1, 22-24 Married filing jointly 6 State or local income taxes 24 Stillborn child 13 Students: Defined 12 Foreign 12 Support test: Qualifying child 14 Qualifying relative 19 Surviving spouse: Death of spouse (See Death of spouse) Gross income filing requirements (Table 1) 2 Qualifying Surviving Spouse 9 Single filing status 6 T Tables and figures 8, 16 (See also Worksheets) Filing requirements: Dependents (Table 2) 4 Gross income levels (Table 1) 2 Other situations requiring filing (Table 3) 5 Standard deduction tables 26 Tax help 26 Tax returns: Amended (See Form 1040-X) Filing of (See Filing requirements) Joint returns (See Joint returns) Who must file 1-3, 5 Tax-exempt income 19 Taxes, not support 21 Temporary absences 13, 18 Tiebreaker rules 15 Tips, reporting of (Table 3) 5 Total support 20 Tuition, benefits under GI Bill 21 U U.S. citizen or resident 12 U.S. citizens filing abroad, filing requirements: Filing requirements 3 U.S. national 12 U.S. possessions, income from 3 Unmarried persons (See Single taxpayers) W Welfare benefits 19 What's New 1 Worksheets: Head of household status and cost of keeping up home 8 Support test 16 Page 30 Publication 501 (2022)

(p915)Publication 915 (2022), Social Security and Equivalent Railroad Retirement Benefits#

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Department of the Treasury Internal Revenue Service Publication 915 Cat. No. 15320P Social Security and Equivalent Railroad Retirement Benefits For use in preparing 2022 Returns Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Spanish (Español) • IRS.gov/Chinese (中文) • IRS.gov/Korean (한국어) • IRS.gov/Russian (Pусский) • IRS.gov/Vietnamese (Tiếng Việt) Contents Future Developments . . . . . . . . . . . . . . . . . . . . . . . 1 What’s New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Are Any of Your Benefits Taxable? . . . . . . . . . . . . 3 How To Report Your Benefits . . . . . . . . . . . . . . . . . 6 How Much Is Taxable? . . . . . . . . . . . . . . . . . . . . . . 6 Lump-Sum Election . . . . . . . . . . . . . . . . . . . . . . . 11 Deductions Related to Your Benefits . . . . . . . . . . 15 Worksheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . 29 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Future Developments For the latest information about developments related to Pub. 915, such as legislation enacted after it was published, go to IRS.gov/Pub915. What’s New Due date of return. File Form 1040 or 1040-SR by April 18, 2023. The due date is April 18, instead of April 15, be- cause of the Emancipation Day holiday in the District of Columbia—even if you don't live in the District of Colum- bia. 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 qualifying widow(er) apply to qualifying surviving spouse. See Qualifying Surviving Spouse in the Instructions for Form 1040 for details on the qualifying widow(er) filing status. 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 reported on Form 1040, and some amounts reported on Form 1040-SR, are now reported on Schedule 1 (Form 1040). • Scholarships and fellowship grants are now reported on Schedule 1, line 8r. • Pension or annuity from a nonqualified deferred com- pensation plan or a nongovernmental section 457 plan is now reported on Schedule 1, line 8t. • Wages earned while incarcerated are now reported on Schedule 1, line 8u. Feb 7, 2023

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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 Lump-Sum Election, later. Reminders my Social Security account. Social security beneficia- ries may quickly and easily obtain information from the Social Security Administration's (SSA's) website with a my Social 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, • 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 or SSA-1042S for the tax season. For more information and to set up an account, go to SSA.gov/myaccount. Tuition and fees deduction not available. The tuition and fees deduction is not available after 2020. Instead, the income limitations for the lifetime learning credit have been increased. See Form 8863 and its instructions. Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children se- lected by the Center may appear in this publication on pa- ges 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 recog- nize a child. Introduction This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retire- ment benefits. It is prepared through the joint efforts of the IRS, the Social Security Administration (SSA), and the U.S. Railroad Retirement Board (RRB). Social security benefits include monthly retirement, sur- vivor, and disability benefits. They don’t include Supple- mental Security Income (SSI) payments, which aren’t tax- able. Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or benefi- ciary would have been entitled to receive under the social security system. They are commonly called the social se- curity equivalent benefit (SSEB) portion of tier 1 benefits. If you received these benefits during 2022, you should have received a Form SSA-1099, Social Security Benefit Statement; Form RRB-1099, Payments by the Railroad Retirement Board; Form SSA-1042S, Social Security Benefit Statement; or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, showing the amount. Note. When the term “benefits” is used in this publica- tion, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. What is covered in this publication. This publication covers the following topics. • Whether any of your benefits are taxable. • How to report taxable benefits. • How much is taxable. • How to treat lump-sum benefit payments. • Deductions related to your benefits, including a de- duction or credit you can claim if your repayments are more than your gross benefits. The Appendix at the end of this publication explains items shown on your Form SSA-1099, SSA-1042S, RRB-1099, or RRB-1042S. What isn’t covered in this publication. This publication doesn’t cover the tax rules for the following railroad retire- ment benefits. • Non-social security equivalent benefit (NSSEB) por- tion of tier 1 benefits. • Tier 2 benefits. • Vested dual benefits. • Supplemental annuity benefits. For information on these taxable pension benefits, see Pub. 575, Pension and Annuity Income. This publication also doesn’t cover the tax rules for for- eign social security benefits. These benefits are taxable as annuities, unless they are exempt from U.S. tax or trea- ted as a U.S. social security benefit under a tax treaty. Comments and suggestions. We welcome your com- ments about this publication and suggestions for future editions. You can send us comments through IRS.gov/ FormComments. Or, you can write to the Internal Reve- nue Service, Tax Forms and Publications, 1111 Constitu- tion Ave. NW, IR-6526, Washington, DC 20224. Although we can’t respond individually to each com- ment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above ad- dress. Getting answers to your tax questions. If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, 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. Page 2 Publication 915 (2022)

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Getting tax forms, instructions, and publications. Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications. Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instruc- tions, and publications; 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 online. 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) 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 See How To Get Tax Help at the end of this publication for information about getting these publications and forms. Are Any of Your Benefits Taxable? To find out whether any of your benefits shown on Forms SSA-1099 and RRB-1099 may be taxable, compare the base amount (explained later) for your filing status with the total of: 1. One-half of your benefits; plus 2. All your other income, including tax-exempt interest. Exclusions. When making this comparison, don’t reduce your other income by any exclusions for: • Interest from qualified U.S. savings bonds, • Employer-provided adoption benefits, • Interest on education loans, • Foreign earned income or foreign housing, or • Income earned by bona fide residents of American Samoa or Puerto Rico. 501 505 519 575 590-A 1040-ES SSA-1099 RRB-1099 W-4V Children's benefits. The rules in this publication apply to benefits received by children. See Who is taxed, later. The SSA issues Form SSA-1099 and Form SSA-1042S. The RRB issues Form RRB-1099 and Form RRB-1042S. These forms (tax state- ments) report the amounts paid and repaid, and taxes withheld for a tax year. You may receive more than one of these forms for the same tax year. See the Appendix, later, for more information. Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. A corrected Form RRB-1099 or Form RRB-1042S is indicated as “CORRECTED” and re- places the corresponding original Form RRB-1099 or Form RRB-1042S. You must use the latest corrected Form RRB-1099 or Form RRB-1042S you received and any original Form RRB-1099 or Form RRB-1042S that the RRB hasn’t corrected when you determine what amounts to report on your tax return. Figuring total income. To figure the total of one-half of your benefits plus your other income, use Worksheet A, 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 2022, 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 bene- fits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. If the only income you received during 2022 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits gener- ally aren’t taxable and you probably don’t have to file a re- turn. 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 IRS 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 household, or quali- fying surviving spouse; • $25,000 if you are married filing separately and lived apart from your spouse for all of 2022; • $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 2022. Worksheet A. You can use Worksheet A to figure the amount of income to compare with your base amount. This is a quick way to check whether some of your bene- fits may be taxable. TIP TIP Publication 915 (2022) Page 3

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Example. You and your spouse (both over 65) are filing a joint return for 2022 and you both received social security benefits during the year. In January 2023, you received a Form SSA-1099 showing net benefits of $5,100 in box 5. Your spouse received a Form SSA-1099 showing net benefits of $2,500 in box 5. You also received a taxable pension of $28,100 and interest income of $700. You didn’t have any tax-exempt interest income. Your benefits aren’t taxable for 2022 because your income, as figured on Worksheet A, isn’t more than your base amount ($32,000) for married filing jointly. Even though none of your benefits are taxable, you must file a return for 2022 because your taxable gross income ($28,800) exceeds the minimum filing requirement amount for your filing status. Worksheet A. 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 2022, for 2022 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. You need to complete Worksheet 1. 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. Filled-in Worksheet A. 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 2022, for 2022 and earlier years. (If you received more than one form, combine the amounts from box 5 and enter the total.) . . . . . A. $6,000 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. 3,000 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. 28,800 D. Enter any tax-exempt interest income, such as interest on municipal bonds . . . . . . . . . . . . . . . D. -0- E. Add lines B, C, and D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E. $31,800 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. 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. Page 4 Publication 915 (2022)

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Who is taxed. Benefits are included in the taxable in- come (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 receive 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 taxa- ble to you. One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. Repayment of benefits. Any repayment of benefits you made during 2022 must be subtracted from the gross ben- efits you received in 2022. It doesn’t matter whether the repayment was for a benefit you received in 2022 or in an earlier year. If you repaid more than the gross benefits you received in 2022, see Repayments More Than Gross Benefits, later. Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Your repayments are shown in box 4. The amount in box 5 shows your net ben- efits for 2022 (box 3 minus box 4). Use the amount in box 5 to figure whether any of your benefits are taxable. Example. In 2021, you received $3,000 in social se- curity benefits, and in 2022 you received $2,700. In March 2022, the SSA notified you that you should have received only $2,500 in benefits in 2021. During 2022, you repaid $500 to the SSA. The Form SSA-1099 you received for 2022 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). 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 re- tirement benefits. If you choose to do this, you must com- plete a Form W-4V. If you don’t choose to have income tax withheld, you may have to request additional withholding from other in- come or pay estimated tax during the year. For details, see Pub. 505, or the Instructions for Form 1040-ES. U.S. citizens residing abroad. U.S. citizens who are residents of the following countries are exempt from U.S. tax on their benefits. • Canada. • Egypt. • Germany. • Ireland. • Israel. • Italy. (You must also be a citizen of Italy for the ex- emption to apply.) • Romania. • United Kingdom. The SSA won’t withhold U.S. tax from your benefits if you are a U.S. citizen. The RRB will withhold U.S. tax from your benefits un- less you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency infor- mation. If you don’t file Form RRB-1001, the RRB will con- sider you a nonresident alien and withhold tax from your railroad retirement benefits at a 30% rate. Contact the RRB to get this form. Lawful permanent residents. For U.S. income tax pur- poses, lawful permanent residents (green card holders) are considered resident aliens until their lawful permanent resident status under the immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Social security benefits paid to a green card holder are not subject to 30% withholding. If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign ad- dress, the withholding tax is refundable by the SSA or the IRS. The SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. If the SSA can’t refund the taxes withheld, you must file a Form 1040 or 1040-SR with the Internal Revenue Service Center, Austin, TX 73301, to determine if you are entitled to a refund. You must also at- tach the following information to your Form 1040 or 1040-SR. • A copy of the Form SSA-1042S. • A copy of the “green card” unless you are a bona fide resident of American Samoa. • A signed declaration that includes the following state- ments: “The SSA should not have withheld federal income tax from my social security benefits because I am a U.S. law- ful permanent resident and my green card has been nei- ther revoked nor administratively or judicially determined to have been abandoned. I am filing a U.S. income tax re- turn for the tax year as a resident alien reporting all of my worldwide income. I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien.” Nonresident aliens. A nonresident alien is an individual who isn’t a citizen or resident of the United States. If you are a nonresident alien, the rules discussed in this publi- cation don’t apply to you. Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. These forms will also show the tax rate and the amount of tax withheld from your benefits. Under tax treaties with the following countries, resi- dents of these countries are exempt from U.S. tax on their benefits. • Canada. • Egypt. • Germany. • Ireland. • Israel. • Italy. • Japan. Publication 915 (2022) Page 5

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• Romania. • United Kingdom. Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U.S. tax if the benefits are for services performed for the United States or its subdivisions, or local government authorities. If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. For more information on whether you are a nonresident alien, see Pub. 519. Exemption from withholding. If your social security benefits are exempt from tax because you are a resident of one of the treaty countries listed, the SSA won’t with- hold U.S. tax from your benefits. If your railroad retirement benefits are exempt from tax because you are a resident of one of the treaty countries listed, you can claim an exemption from withholding by fil- ing Form RRB-1001 with the RRB. Contact the RRB to get this form. Canadian or German social security benefits paid to U.S. residents. Under income tax treaties with Canada and Germany, social security benefits paid by those coun- tries to U.S. residents are treated for U.S. income tax pur- poses as if they were paid under the social security legis- lation of the United States. If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1. 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 taxa- ble part on line 6b. If you are married filing separately and you lived apart from your spouse for all of 2022, 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. En- ter -0- on Form 1040 or 1040-SR, line 6b. If you are mar- ried filing separately and you lived apart from your spouse for all of 2022, also enter “D” to the right of the word “ben- efits” 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 in- come. 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 bene- fits can be taxable if either of the following situations ap- plies 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 mar- ried filing jointly). • You are married filing separately and lived with your spouse at any time during 2022. 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 this publication, unless 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 deduction 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 income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. In this situation, you must use Worksheet 1 in this publication 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 this publication. See Lump-Sum Elec- tion, later. Examples A few examples you can use as a guide to figure the taxa- ble part of your benefits follow. Page 6 Publication 915 (2022)

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Examples Example 1. George White is single and files Form 1040 for 2022. In addition to receiving social security payments, he received a fully taxable pension of $18,600, wages from a part-time job of $9,400, and taxable interest income of $990, for a total of $28,990. He received a Form SSA-1099 in January 2023 that shows his net social security benefits of $5,980 in box 5. To figure his taxable benefits, George completes Worksheet 1, shown below. 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. Filled-in Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2022, 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 2022 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2022 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2022. For more information, see Repayments More Than Gross Benefits. • 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 . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $5,980 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 2,990 3. Combine the amounts from: Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 28,990 4. Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 31,980 7. Enter the total of the amounts from Schedule 1 (Form 1040), lines 11 through 20, and 23 and 25 . . . . . . . 7. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 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 2022, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 25,000 Note. If you are married filing separately and you lived with your spouse at any time in 2022, 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 2022, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 6,980 11. Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying surviving spouse, or married filing separately and you lived apart from your spouse for all of 2022 . . . . . . . . . . . . . . . . . . . . . 11. 9,000 12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. -0- 13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 6,980 14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 3,490 15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 2,990 16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. -0- 17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 2,990 18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. $2,990 TIP If you received a lump-sum payment in 2022 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Publication 915 (2022) Page 7

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Example 2. Ray and Alice Hopkins file a joint return on Form 1040 for 2022. Ray is retired and received a fully taxable pension of $15,500. He also received social security benefits, and his Form SSA-1099 for 2022 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, entering $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 Keep for Your Records Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2022, 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 2022 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2022 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2022. For more information, see Repayments More Than Gross Benefits. • 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 . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $5,600 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 2,800 3. Combine the amounts from: Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 29,750 4. Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 32,550 7. Enter the total of the amounts from Schedule 1 (Form 1040), lines 11 through 20, and 23 and 25 . . . . . . . 7. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 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 2022, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 32,000 Note. If you are married filing separately and you lived with your spouse at any time in 2022, 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 2022, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying surviving spouse, or married filing separately and you lived apart from your spouse for all of 2022 . . . . . . . . . . . . . . . . . . . . . 11.

12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

19. Taxable benefits. Enter the smaller of line 17 or line 18. Also enter this amount on Form 1040 or 1040-SR, line 6b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. TIP If you received a lump-sum payment in 2022 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Page 8 Publication 915 (2022)

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Example 3. Joe and Betty Johnson file a joint return on Form 1040 for 2022. Joe is a retired railroad worker and in 2022 received the SSEB portion of tier 1 railroad retirement benefits. 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. Because they have qualified U.S. savings bond interest, 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). More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. (See Maximum taxable part under How Much Is Taxable, earlier.) Joe and Betty enter $10,000 on Form 1040, line 6a; and $6,275 on Form 1040, line 6b. Filled-in Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2022, 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 2022 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2022 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2022. For more information, see Repayments More Than Gross Benefits. • 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 . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $10,000 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 5,000 3. Combine the amounts from: Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 40,500 4. Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 45,500 7. Enter the total of the amounts from Schedule 1 (Form 1040), lines 11 through 20, and 23 and 25 . . . . . . . 7. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 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 2022, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 32,000 Note. If you are married filing separately and you lived with your spouse at any time in 2022, 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 2022, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 13,500 11. Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying surviving spouse, or married filing separately and you lived apart from your spouse for all of 2022 . . . . . . . . . . . . . . . . . . . . . 11. 12,000 12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 1,500 13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 12,000 14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 6,000 15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 5,000 16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. 1,275 17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 6,275 18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. $6,275 TIP If you received a lump-sum payment in 2022 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Publication 915 (2022) Page 9

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Filled-in Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2022, 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 2022 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2022 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2022. For more information, see Repayments More Than Gross Benefits. • 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 . . . . . . . . . . . . . . . . . . . . . . 1. $4,000 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 2,000 3. Combine the amounts from: Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 8,000 4. Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 10,000 7. Enter the total of the amounts from Schedule 1 (Form 1040), lines 11 through 20, and 23 and 25 . . . . . . 7. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 10,000 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 2022, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

Note. If you are married filing separately and you lived with your spouse at any time in 2022, 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 2022, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 8,500 18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. 3,400 19. Taxable benefits. Enter the smaller of line 17 or line 18. Also enter this amount on Form 1040 or 1040-SR, line 6b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. $3,400 TIP If you received a lump-sum payment in 2022 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit.

Example 4. Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2022. Bill earned $8,000 during 2022. The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). Bill figures his taxable benefits by completing Worksheet 1, shown below. He must include 85% of his social security benefits in his taxable income because he is married filing separately and lived with his spouse during 2022. See How Much Is Taxable, earlier. Bill enters $4,000 on his Form 1040, line 6a; and $3,400 on Form 1040, line 6b. Page 10 Publication 915 (2022)

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Lump-Sum Election You must include the taxable part of a lump-sum (retroac- tive) payment of benefits received in 2022 in your 2022 in- come, even if the payment includes benefits for an earlier year. 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 2022 and they in- clude a lump-sum benefit payment that was for an earlier year, you may be able to to reduce the taxable amount with the lump-sum election. 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 bene- ficiaries. No part of the lump-sum death benefit is subject to tax. Generally, you use your 2022 income to figure the taxa- ble part of the total benefits received in 2022. 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. Under the lump-sum election method, you refigure the taxable part of all your benefits for the earlier year (includ- ing the lump-sum payment) using that year's income. Then, you subtract any taxable benefits for that year that you previously reported. The remainder is the taxable part of the lump-sum payment. Add it to the taxable part of your benefits for 2022 (figured without the lump-sum pay- ment for the earlier year). Because the earlier year's taxable benefits are in- cluded in your 2022 income, no adjustment is made to the earlier year's return. Don’t file an amended return for the earlier year. Will the lump-sum election method lower your taxa- ble benefits? To find out, take the following steps. 1. Complete Worksheet 1 in this publication. 2. Complete Worksheet 2 and Worksheet 3, as appro- priate. Use Worksheet 2 if your lump-sum payment was for a year after 1993. Use Worksheet 3 if it was for 1993 or an earlier year. Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. 3. Complete Worksheet 4. 4. Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. If the taxable benefits on Worksheet 4 are lower than the taxable benefits on Worksheet 1, you can elect to report the lower amount on your return. Making the election. If you elect to report your taxable benefits under the lump-sum election method, follow the TIP TIP CAUTION ! instructions at the bottom of Worksheet 4. Don’t attach the completed worksheets to your return. Keep them with your records. Once you elect this method of figuring the taxable part of a lump-sum payment, you can revoke your election only with the consent of the IRS. Lump-sum payment reported on Form SSA-1099 or RRB-1099. If you received a lump-sum payment in 2022 that includes benefits for one or more earlier years after 1983, it will be included in box 3 of either Form SSA-1099 or Form RRB-1099. That part of any lump-sum payment for years before 1984 isn’t taxed and won’t be shown on the form. The form will also show the year (or years) the payment is for. However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2017. You must contact the RRB for a breakdown by year for any amount shown in box 9. Example Jane Jackson is single. In 2021, she applied for social se- curity disability benefits but was told she was ineligible. She appealed the decision and won. In 2022, she re- ceived a lump-sum payment of $6,000, of which $2,000 was for 2021 and $4,000 was for 2022. Jane also re- ceived $5,000 in social security benefits in 2022, so her total benefits in 2022 were $11,000. Jane's other income for 2021 and 2022 is as follows. Income 2021 2022 Wages $20,000 $3,500 Interest income 2,000 2,500 Dividend income 1,000 1,500 Fully taxable pension

18,000 Total $23,000 $25,500 To see if the lump-sum election method results in lower taxable benefits, she completes Worksheets 1, 2, and 4 from this publication. She doesn’t need to complete Work- sheet 3 because her lump-sum payment was for years af- ter 1993. Jane completes Worksheet 1 to find the amount of her taxable benefits for 2022 under the regular method. She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2021 under the lump-sum election method. She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21; and Worksheet 1, line 19. Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. To do this, she prints “LSE” to the left of Form 1040 or 1040-SR, line 6a. She then enters $11,000 on Form 1040 or 1040-SR, line 6a, and her taxable benefits of $2,500 on line 6b. Jane's filled-in worksheets (1, 2, and 4) follow. CAUTION ! Publication 915 (2022) Page 11

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Jane Jackson's Filled-in Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2022, 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 2022 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2022 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2022. For more information, see Repayments More Than Gross Benefits. • 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 . . . . . . . . . . . . . . . . . . . . . . 1. $11,000 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 5,500 3. Combine the amounts from: Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 25,500 4. Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 31,000 7. Enter the total of the amounts from Schedule 1 (Form 1040), lines 11 through 20, and 23 and 25 . . . . . . . 7. -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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 31,000 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 2022, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 25,000 Note. If you are married filing separately and you lived with your spouse at any time in 2022, 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 2022, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 6,000 11. Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying surviving spouse, or married filing separately and you lived apart from your spouse for all of 2022 . . . . . . . . . . . . . . . . . . . . . 11. 9,000 12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. -0- 13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 6,000 14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 3,000 15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 3,000 16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. -0- 17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 3,000 18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. 9,350 19. Taxable benefits. Enter the smaller of line 17 or line 18. Also enter this amount on Form 1040 or 1040-SR, line 6b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. $3,000 TIP If you received a lump-sum payment in 2022 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Page 12 Publication 915 (2022)

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Jane Jackson's Filled-in Worksheet 2. Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993) Keep for Your Records

Enter earlier year

2021 1. Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year . . . . . . . . . . . . . . . . . 1. $2,000 Note. If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Otherwise, go to line 2. 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 1,000 3. Enter your adjusted gross income for the earlier year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 23,000 4. Enter the total of any exclusions/adjustments you claimed in the earlier year for: • Adoption benefits (Form 8839), • Qualified U.S. savings bond interest (Form 8815), • Student loan interest (Schedule 1 (Form 1040), line 21), • Foreign earned income or housing (Form 2555), and • Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico . . . . . . . . .. . . . . . . . . 4. -0- 5. Enter any tax-exempt interest received in the earlier year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Add lines 2 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 24,000 7. Enter your taxable benefits for the earlier year that you previously reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. -0- 8. Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 24,000 9. If, for the earlier year, you were: • Married filing jointly, enter $32,000; or • Single, head of household, qualifying surviving spouse, married filing separately and you lived apart from your spouse for all of the earlier year, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 25,000 Note. If you were married filing separately and you lived with your spouse at any time during the earlier year, 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 8 more than the amount on line 9? No. Skip lines 10 through 20 and enter -0- on line 21. Yes. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Enter $12,000 if married filing jointly for the earlier year; $9,000 if single, head of household, qualifying surviving spouse, or married filing separately and you lived apart from your spouse for all of the earlier year . . . . . . . . . . . 11.

12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

19. Refigured taxable benefits. Enter the smaller of line 17 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.

20. Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.

21. Additional taxable benefits. Subtract line 20 from line 19. Also enter this amount on Worksheet 4, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. -0- CAUTION ! Don’t file an amended return for this earlier year. Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2022. Publication 915 (2022) Page 13

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Jane Jackson's Filled-in Worksheet 4. Figure Your Taxable Benefits Under the Lump-Sum Election Method (Use With Worksheet 2 or 3) Keep for Your Records

Complete Worksheet 1 and Worksheets 2 and 3 as appropriate before completing this worksheet. 1. Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for 2022, minus the lump-sum payment for years before 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $9,000 Note. If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19, and go to line 20. Otherwise, go to line 2. 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 4,500 3. Enter the amount from Worksheet 1, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 25,500 4. Enter the amount from Worksheet 1, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. -0- 5. Enter the amount from Worksheet 1, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. -0- 6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 30,000 7. Enter the amount from Worksheet 1, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. -0- 8. Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 30,000 9. Enter the amount from Worksheet 1, line 9. But if you are married filing separately and lived with your spouse at any time during 2022, skip lines 9 through 16, multiply line 8 by 85% (0.85), and enter the result on line 17. Then, go to line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 25,000 10. Is the amount on line 8 more than the amount on line 9? No. Skip lines 10 through 18, enter -0- on line 19, and go to line 20. Yes. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 5,000 11. Enter the amount from Worksheet 1, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 9,000 12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. -0- 13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 5,000 14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 2,500 15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 2,500 16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. -0- 17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 2,500 18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. 7,650 19. Enter the smaller of line 17 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. 2,500 20. Enter the total of the amounts from Worksheet 2, line 21, and Worksheet 3, line 14, for all earlier years for which the lump-sum payment was received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. -0- 21. Taxable benefits under lump-sum election method. Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . 21. $2,500 Next. Is line 21 above smaller than Worksheet 1, line 19? No. Don’t use this method to figure your taxable benefits. Follow the instructions on Worksheet 1 to report your benefits. Yes. You can elect to report your taxable benefits under this method. To elect this method: 1. Enter “LSE” to the left of Form 1040 or 1040-SR, line 6a. 2. If line 21 above is zero, follow the instructions on line 10 for “No” on Worksheet 1. Otherwise: a. Enter the amount from Worksheet 1, line 1, on Form 1040 or 1040-SR, line 6a. b. Enter the amount from line 21 above on Form 1040 or 1040-SR, line 6b. c. If you are married filing separately and you lived apart from your spouse for all of 2022, enter “D” to the right of the word “benefits” on Form 1040 or 1040-SR, line 6a. Page 14 Publication 915 (2022)

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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 insurance company that you included as income on your tax return in an ear- lier year. If you received a lump-sum payment from the SSA or RRB, and you had to repay the employer or insur- ance company for the disability payments, you can take an itemized deduction for the part of the payments you in- cluded 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 re- ceived in an earlier year under Repayments More Than Gross Benefits next. Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you re- ceived. If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Don’t use Worksheet 1 in this case. If you receive more than one form, a negative 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 negative 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 2022. John received Form SSA-1099 showing $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 fig- uring if any of their combined benefits are taxable. Repayment of benefits received in an earlier 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 deduction is more than $3,000, you should figure your tax two ways. 1. Figure your tax for 2022 with the itemized deduction included on Schedule A (Form 1040), line 16. 2. Figure your tax for 2022 in the following steps. a. Figure the tax without the itemized deduction in- cluded on Schedule A (Form 1040), line 16. b. For each year after 1983 for which part of the neg- ative figure represents a repayment of benefits, re- figure your taxable benefits as if your total benefits for the year were reduced by that part of the nega- tive figure. Then, refigure 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 result in (a). Compare the tax figured in methods 1 and 2. Your tax for 2022 is the smaller of the two amounts. If method 1 re- sults in less tax, take the itemized deduction on Sched- ule 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. Enter “I.R.C. 1341” on the entry line. If both methods produce the same tax, de- duct the repayment on Schedule A (Form 1040), line 16. Worksheets Blank Worksheets 1 through 4 are provided in this sec- tion. 1. Worksheet 1, Figuring Your Taxable Benefits. 2. Worksheet 2, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993). 3. Worksheet 3, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994). 4. Worksheet 4, Figure Your Taxable Benefits Under the Lump-Sum Election Method (Use With Worksheet 2 or 3). Publication 915 (2022) Page 15

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Worksheet 1. Figuring Your Taxable Benefits Keep for Your Records Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2022, 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 2022 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2022 (box 3 of Forms SSA-1099 and RRB-1099). None of your benefits are taxable for 2022. For more information, see Repayments More Than Gross Benefits. • 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 . . . . . . . . . . . . . . . . . . . . . . 1.

2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Combine the amounts from: Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Combine lines 2, 3, 4, and 5 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Enter the total of the amounts from Schedule 1 (Form 1040), lines 11 through 20, and 23 and 25 . . . . . . . 7.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

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 2022, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

12. Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Enter the smaller of line 10 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Multiply line 13 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Enter the smaller of line 2 or line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.

18. Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

(p915)(page-17)Page 17#

Worksheet 2. Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993) Keep for Your Records

Enter earlier year

Note. If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Otherwise, go to line 2. 2. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter your adjusted gross income for the earlier year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the total of any exclusions/adjustments you claimed in the earlier year for: • Adoption benefits (Form 8839), • Qualified U.S. savings bond interest (Form 8815), • Student loan interest (for 2020, 2019, and 2018, Schedule 1 (Form 1040); for years before 2018, Form 1040 or Form 1040A, page 1), • Tuition and fees (for 2020, 2019, and 2018, Schedule 1 (Form 1040); for years before 2018, Form 1040 or Form 1040A, page 1), • Domestic production activities (for 2005 through 2017) (Form 1040, page 1), • Foreign earned income or housing (Form 2555 or Form 2555-EZ), and • Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico . . . . . . . . .. . . . . . . . . 4.

5. Enter any tax-exempt interest received in the earlier year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Add lines 2 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Enter your taxable benefits for the earlier year that you previously reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. If, for the earlier year, you were: • Married filing jointly, enter $32,000; or • Single, head of household, qualifying surviving spouse, married filing separately and you lived apart from your spouse for all of the earlier year, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

Note. If you were married filing separately and you lived with your spouse at any time during the earlier year, 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 8 more than the amount on line 9? No. Skip lines 10 through 20 and enter -0- on line 21. Yes. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.