Your Federal Income Tax For Individuals 2023 PDF

Publication 17 Your Federal Catalog Number 10311G Income Tax...

Publication 17 Your Federal Catalog Number 10311G Income Tax For use in preparing Department of the For Individuals 2023 Returns Treasury Internal Revenue Service TAX GUIDE 2023 Get forms and other information faster and easier at: IRS.gov (English) IRS.gov/Chinese (中文) IRS.gov/Russian (Pусский) IRS.gov/Spanish (Español) IRS.gov/Korean (한국어) IRS.gov/Vietnamese (Tiếng Việt) Mar 18, 2024  Your Federal Department Income Tax of the Treasury For Individuals Internal Revenue Contents Service What's New....................... 1 11 Taxes...................... 97 12 Other Itemized Deductions......... 101 Reminders........................ 2 Part Four. Figuring Your Taxes, and Introduction....................... 3 Refundable and Nonrefundable Credits.. 107 13 How To Figure Your Tax........... 107 Part One. The Income Tax Return.......... 6 14 Child Tax Credit and Credit for Other 1 Filing Information................ 6 Dependents................. 109 2 Filing Status................... 21 3 Dependents................... 26 2023 Tax Table..................... 112 4 Tax Withholding and Estimated Tax..... 37 2023 Tax Computation Worksheet........ 124 Part Two. Income and Adjustments to Income..................... 46 2023 Tax Rate Schedules.............. 124 5 Wages, Salaries, and Other Earnings.... 47 6 Interest Income................. 54 Your Rights as a Taxpayer............. 126 7 Social Security and Equivalent Railroad How To Get Tax Help................. 127 Retirement Benefits.............. 62 8 Other Income.................. 67 Index.......................... 130 9 Individual Retirement Arrangements (IRAs)..................... 78 Where To File..................... 140 Part Three. Standard Deduction, Itemized Deductions, and Other Deductions...... 93 10 Standard Deduction.............. 93 All material in this The explanations and examples in this publication This publication covers some subjects on which a publication may be reflect the interpretation by the Internal Revenue Service court may have made a decision more favorable to reprinted freely. A (IRS) of: taxpayers than the interpretation by the IRS. Until these citation to Your Federal Tax laws enacted by Congress, differing interpretations are resolved by higher court Income Tax (2023) decisions or in some other way, this publication will would be appropriate. Treasury regulations, and continue to present the interpretations by the IRS. Court decisions. All taxpayers have important rights when working with the IRS. These rights are described in Your Rights as a However, the information given does not cover every Taxpayer in the back of this publication. situation and is not intended to replace the law or change its meaning. What's New This section summarizes important Line 6m will be used to report Exception to the 10% additional Certain corrective distributions tax changes that took effect in the credit for previously tax for early distributions. The not subject to 10% early distri- 2023. Most of these changes are owned clean vehicles from exception to the 10% additional tax bution tax. Beginning with distri- discussed in more detail Form 8936. for early distributions include the butions made on December 29, throughout this publication. following. 2022, and after, the 10% additional Line 13c will be used to report Future developments. For the tax on early distributions will not the elective payment election Distributions from a retirement latest information about the tax law amount from Form 3800. apply to the income attributed to a plan in connection with feder- topics covered in this publication, corrective IRA distribution, as long ally declared disasters. such as legislation enacted after it Credits for qualified sick and as the corrective distribution is was published, go to IRS.gov/ family leave wages. The credits Distribution from a retirement made on or before the due date (in- Pub17. for qualified sick and family leave plan made to someone who is cluding extensions) of the income wages paid in 2023 for leave taken terminally ill. tax return. Due date of return. File Form 1040 or 1040-SR by April 15, 2024. before April 1, 2021, and for leave Distributions to firefighters at Delayed refund for returns If you live in Maine or Massachu- taken after March 31, 2021, and age 50 or with 25 years of claiming the additional child tax setts, you have until April 17, 2024, before October 1, 2021, are now service under the plan. credit (ACTC). The IRS cannot is- because of the Patriots’ Day and reported on Schedule 3, line 13z. sue refunds before mid-February See Schedule H (Form 1040) for See Form 5329 and Pub. 590-B Emancipation Day holidays. See 2024 for returns that properly claim more information. for more information. chapter 1, later. ACTC. This time frame applies to Additonal child tax credit Alternative motor vehicle credit. Direct File. The IRS is taking the entire refund, not just the por- amount increased. The maxi- The alternative motor vehicle credit steps to implement a Direct File pi- tion associated with ACTC. mum additional child tax credit has expired. lot during the 2024 filing season. Standard mileage rate. The amount has increased to $1,600 This pilot will give eligible taxpay- 2023 rate for business use of a ve- Self-employed health insurance ers an option to prepare and elec- hicle is 65.5 cents a mile. The 2023 for each qualifying child. deduction. Use Form 7206 and tronically file their 2023 federal tax rate for use of your vehicle to do New clean vehicle credit. The its instructions to determine any credit for new qualified plug-in returns directly with the IRS for volunteer work for certain charita- amount of the self-employed health free. The Direct File pilot will be of- ble organizations is 14 cents a electric drive motor vehicles has insurance deduction you may be changed. This credit is now known fered to eligible taxpayers in partic- mile. The 2023 rate for operating able to claim and report on Sched- ipating states who have relatively expenses for a car when you use it as the clean vehicle credit. The ule 1 (Form 1040), line 17. maximum amount of the credit and simple tax returns reporting only for medical reasons is 22 cents a some of the requirements to claim Qualified charitable distribution certain types of income and claim- mile. the credit have changed. The credit one-time election. Beginning in ing limited credits and deductions. Modified adjusted gross income is still reported on Form 8936 and 2023, you can elect to make a See IRS.gov/DirectFile for pilot in- (AGI) limit for traditional IRA Schedule 3 (Form 1040), line 6f. one-time distribution up to $50,000 formation and updates. contributions. For 2023, if you For more information, see Form from an individual retirement ac- Health flexible spending ar- are covered by a retirement plan at 8936. count to charities through a charita- rangements (health FSAs) un- work, your deduction for contribu- Previously owned clean vehicle ble remainder unitrust, or a charita- der cafeteria plans. For tax years tions to a traditional IRA is reduced credit. This credit is available for ble gift annuity funded only by beginning in 2023, the dollar limita- (phased out) if your modified AGI previously owned clean vehicles qualified distributions. See Pub. tion under section 1251(i) on volun- is: acquired and placed in service af- 590-B for more information. tary employee salary reductions for More than $116,000 but less ter 2022. For more information, see Increase in required minimum contributions to health FSAs is than $136,000 for a married Form 8936. distribution age. If you reach age $3,050. couple filing a joint return or a Who must file. Generally, the 72 in 2023, the required beginning qualifying surviving spouse, Temporary allowance of 100% amount of income you can receive date for your first required mini- business meal deduction has More than $73,000 but less before you must file a return has mum distribution is April 1, 2025. expired. Section 210 of the Tax- than $83,000 for a single indi- been increased. For more informa- See Pub. 590–B for more informa- payer Certainty and Disaster Tax vidual or head of household, tion, see chapter 1, later. tion. Relief Act of 2020 provided for the or Standard deduction amount in- temporary allowance of a 100% creased. For 2023, the standard IRA contribution limit increased. Less than $10,000 for a mar- Beginning in 2023, the IRA contri- business meal deduction for food ried individual filing a separate deduction amount has been in- or beverages provided by a restau- bution limit is increased to $6,500 return. creased for all filers. The amounts rant and paid or incurred after De- ($7,500 for individuals age 50 or are: cember 31, 2020, and before Janu- If you either live with your spouse older) from $6,000 ($7,000 for indi- or file a joint return, and your Single or Married filing sepa- viduals age 50 or older). ary 1, 2023. rately—$13,850; spouse is covered by a retirement Deferred compensation contri- Disaster tax relief. The special plan at work but you aren't, your Married filing jointly or Qualify- bution limit increased. If you rules that provide for tax-favored deduction is phased out if your ing surviving participate in a 401(k) plan, 403(b) withdrawals and repayments now modified AGI is more than spouse—$27,700; and plan, or the federal government’s apply to disasters that occur on or $218,000 but less than $228,000. If Thrift Savings Plan, the total an- after January 26, 2021. See Disas- your modified AGI is $228,000 or Head of household—$20,800. nual amount you can contribute is ter-Related Relief in Pub. 590-B for more, you can't take a deduction See chapter 10, later. increased to $22,500 ($30,000 if more information. for contributions to a traditional New lines on Schedule 3 (Form age 50 or older) for 2023. This also IRA. See How Much Can You De- Distributions to terminally ill in- 1040). This year Schedule 3 applies to most 457 plans. duct in chapter 9, later. dividuals. The exception to the (Form 1040) has new lines. Modified AGI limit for Roth IRA Insurance premiums for retired 10% additional tax for early distri- Line 5a will be used to report public safety officers. Eligible re- butions is expanded to apply to contributions. For 2023, your the residential clean energy tired public safety officers can ex- distributions made after December Roth IRA contribution limit is re- credit from Form 5695. clude from income up to $3,000 of 29, 2022, to an individual who has duced (phased out) in the following been certified by a physician as situations. Line 5b will be used to report distributions from their eligible re- the energy efficient home im- tirement plan that is paid directly to having a terminal illness. See Pub. Your filing status is married fil- provement credit from Form them and is used to pay for health 590-B for more information. ing jointly or qualifying surviv- 5695. insurance premiums. ing spouse and your modified Publication 17 (2023) 1  AGI is at least $218,000. You AGI is $10,000 or more. See surviving spouse; $63,250 if mar- other amounts reported on Form can't make a Roth IRA contri- Can You Contribute to a Roth ried filing separately). The income 1099-K are additional pieces of in- bution if your modified AGI is IRA in chapter 9, later. levels at which the AMT exemption formation to help determine the $228,000 or more. begins to phase out have in- correct amounts to report on your 2024 modified AGI limits. You creased to $578,150 ($1,156,300 if return. Your filing status is single, can find information about the 2024 married filing jointly or qualifying If you received a Form 1099-K head of household, or married contribution and modified AGI lim- surviving spouse). that shows payments you didn’t re- filing separately and you didn't its in Pub. 590-A. live with your spouse at any ceive or is otherwise incorrect, Reporting requirements for time in 2023 and your modi- Tax law changes for 2024. When contact the Form 1099-K issuer. Form 1099-K. Form 1099-K is is- fied AGI is at least $138,000. you figure how much income tax Don’t contact the IRS; the IRS can’t sued by third party settlement or- You can't make a Roth IRA you want withheld from your pay correct an incorrect Form 1099-K. ganizations and credit card compa- contribution if your modified and when you figure your estima- If you can’t get it corrected, or you nies to report payment transactions AGI is $153,000 or more. ted tax, consider tax law changes sold a personal item at a loss, see made to you for goods and serv- effective in 2024. For more infor- the instructions for Schedule 1, Your filing status is married fil- ices. mation, see Pub. 505. lines 8z and 24z, later, for more re- ing separately, you lived with You must report all income on porting information. your spouse at any time dur- Alternative minimum tax (AMT) your tax return unless excluded by All IRS information about Form ing the year, and your modi- exemption amount increased. law, whether you received the in- 1099-K is available by going to fied AGI is more than zero. The AMT exemption amount is in- come electronically or not, and IRS.gov/1099K. You can't make a Roth IRA creased to $81,300 ($126,500 if whether you received a Form contribution if your modified married filing jointly or qualifying 1099-K or not. The box 1a and Reminders Listed below are important theft and how to reduce your risk changes to the CTC for 2021 im- Premium tax credit (PTC). The reminders and other items that may from it, see chapter 1, later. plemented by the American Res- ARP expanded the PTC by elimi- help you file your 2023 tax return. Taxpayer identification num- cue Plan Act of (the ARP) 2021 nating the limitation that a taxpay- Many of these items are explained bers. You must provide the tax- have expired. For tax year 2023, er's household income may not ex- in more detail later in this payer identification number for the follow apply. ceed 400% of the federal poverty publication. each person for whom you claim line and generally increases the The enhanced credit allowed Publication 17 changes. We re- certain tax benefits. This applies credit amounts. For more informa- for qualifying children under moved the following 2019 chapters even if the person was born in tion, see Pub. 974 and Form 8962 age 6 and children under age from this publication: 6, 8, 9, 10, 2023. Generally, this number is the and its instructions. 18 has expired. For 2023, the 13, 14, 15, 16, 18, 19, 20, 22, 24, person's SSN. See chapter 1, later. initial amount of the CTC is Credits for sick and family leave 25, 26, 29, 30, 31, 33, 34, 35, and Filing status name changed to $2,000 for each qualifying for certain self-employed indi- 36. You can find most of the infor- qualifying surviving spouse. child. The credit amount be- viduals are not available. The mation previously found in those The filing status qualifying gins to phase out where modi- credits for sick and family leave for chapters in the primary publication. widow(er) is now called qualifying fied AGI income exceeds certain self-employed individuals Please see Publication 17 surviving spouse. The rules for the $200,000 ($400,000 in the were not extended and you can no Changes, later. filing status have not changed. The case of a joint return). The longer claim these credits. Special rules for eligible gains same rules that applied for qualify- amount of the CTC that can Identity verification. The IRS invested in Qualified Opportu- ing widow(er) apply to qualifying be claimed as a refundable launched an improved identity veri- nity Funds. If you have an eligible surviving spouse. credit is limited as it was in fication and sign-in process that gain, you can invest that gain into a New lines 1a through 1z on 2020 except that the maxi- enables more people to securely Qualified Opportunity Fund (QOF) Forms 1040 and 1040-SR. This mum ACTC amount for each access and use IRS online tools and elect to defer part or all of the year, line 1 is expanded and there qualifying child increased to and applications. To provide verifi- gain that is otherwise includible in are new lines 1a through 1z. Some $1,600. cation services, the IRS is using income. The gain is deferred until amounts that in prior years were re- The increased age allowance ID.me, a trusted technology pro- the date you sell or exchange the ported on Form 1040, and some for a qualifying child has ex- vider. The new process is one investment or December 31, 2026, amounts reported on Form pired. A child must be under more step the IRS is taking to en- whichever is earlier. You may also 1040-SR, are now reported on age 17 at the end of 2023 to sure that taxpayer information is be able to permanently exclude Schedule 1. be a qualifying child. provided only to the person who le- gain from the sale or exchange of Scholarships and fellowship gally has a right to the data. Tax- For more information, see the In- an investment in a QOF if the in- grants are now reported on payers using the new mo- structions for Schedule 8812 (Form vestment is held for at least 10 Schedule 1, line 8r. bile-friendly verification procedure 1040). years. For information about what can gain entry to existing IRS on- types of gains entitle you to elect Pension or annuity from a Changes to the earned income line services such as the Child Tax these special rules, see the In- nonqualified deferred com- Credit Update Portal, Online Ac- credit (EIC). The enhancements structions for Schedule D (Form pensation plan or a non-gov- count, Get Transcript Online, Get for taxpayers without a qualifying 1040). For information on how to ernmental section 457 plan an Identity Protection PIN (IP PIN), child implemented by the ARP elect to use these special rules, are now reported on Schedule and Online Payment Agreement. don't apply for 2023. This means, see the Instructions for Form 8949. 1, line 8t. Additional IRS applications will to claim the EIC without a qualify- Secure your tax records from Wages earned while incarcer- ing child in 2023, you must be at transition to the new method over identity theft. Identity theft occurs ated are now reported on least age 25 but under age 65 at the next year. Each online service when someone uses your personal Schedule 1, line 8u. the end of 2023. If you are married will also provide information that information, such as your name, New line 6c on Forms 1040 and filing a joint return, either you or will instruct taxpayers on the steps SSN, or other identifying informa- 1040-SR. A checkbox was added your spouse must be at least age they need to follow for access to tion, without your permission, to on line 6c. Taxpayers who elect to 25 but under age 65 at the end of the service. You can also see commit fraud or other crimes. An use the lump-sum election method 2023. It doesn't matter which IR-2021-228 for more information. identity thief may use your SSN to for their benefits will check this box. spouse meets the age require- Adoption credit. The adoption get a job or may file a tax return us- See Instructions for Form 1040. ment, as long as one of the spou- credit and the exclusion for em- ing your SSN to receive a refund. Child tax credit (CTC) enhance- ses does. ployer-provided adoption benefits For more information about identity ments have expired. Many are both $15,950 per eligible child 2 Publication 17 (2023) in 2023. The amount begins to 8938 and its instructions or go to that are identified as frivolous. The do not receive it, and whether your phase out if you have modified AGI IRS.gov/Form8938 for details. penalty for filing a frivolous tax re- response is voluntary, required to in excess of $239,230 and is com- turn is $5,000. See chapter 1, later. obtain a benefit, or mandatory un- Automatic 6-month extension to pletely phased out if your modified der the law. A complete statement file tax return. You can get an au- Filing erroneous claim for re- AGI is $279,230 or more. on this subject can be found in your tomatic 6-month extension of time fund or credit. You may have to tax form instructions. ACTC and bona fide residents to file your tax return. See chap- pay a penalty if you file an errone- of Puerto Rico. Bona fide resi- ter 1, later. ous claim for refund or credit. See Preparer e-file mandate. Most dents of Puerto Rico are no longer Payment of taxes. You can pay chapter 1, later. paid preparers must e-file returns required to have three or more your taxes by making electronic they prepare and file. Your preparer Access your online account. qualifying children to be eligible to payments online; from a mobile de- may make you aware of this re- You must authenticate your identity. claim the ACTC. Bona fide resi- vice using the IRS2Go app; or in quirement and the options availa- To securely log into your federal tax dents of Puerto Rico may be eligi- cash, or by check or money order. ble to you. account, go to IRS.gov/Account. ble to claim the ACTC if they have Paying electronically is quick, easy, View the amount you owe, review Treasury Inspector General for one or more qualifying children. and faster than mailing in a check your last 5 years of payment his- Tax Administration. If you want Foreign-source income. If you or money order. See chapter 1, tory, access online payment op- to confidentially report misconduct, are a U.S. citizen with income from later. tions, and create or modify an on- waste, fraud, or abuse by an IRS sources outside the United States Faster ways to file your return. line payment agreement. You can employee, you can call (foreign income), you must report The IRS offers fast, accurate ways also access your tax records on- 800-366-4484 (call 800-877-8339 all such income on your tax return to file your tax return information line. if you are deaf, hard of hearing, or unless it is exempt by law or a tax without filing a paper tax return. have a speech disability, and are Health care coverage. If you treaty. This is true whether you live You can use IRS e-file (electronic using TTY/TDD equipment). You need health care coverage, go to inside or outside the United States filing). See chapter 1, later. can remain anonymous. HealthCare.gov to learn about and whether or not you receive a health insurance options for you Photographs of missing chil- Free electronic filing. You may Form W-2 or Form 1099 from the and your family, how to buy health dren. The IRS is a proud partner be able to file your 2023 taxes on- foreign payer. This applies to insurance, and how you might with the National Center for line for free. See chapter 1, later. earned income (such as wages qualify to get financial assistance Missing & Exploited Children® and tips) as well as unearned in- Change of address. If you to buy health insurance. (NCMEC). Photographs of missing come (such as interest, dividends, change your address, notify the children selected by the Center capital gains, pensions, rents, and IRS. See chapter 1, later. Disclosure, Privacy Act, and pa- may appear in this publication on royalties). perwork reduction information. Refund on a late-filed return. If pages that would otherwise be If you live outside the United The IRS Restructuring and Reform you were due a refund but you did blank. You can help bring these States, you may be able to exclude Act of 1998, the Privacy Act of not file a return, you must generally children home by looking at the part or all of your foreign earned in- 1974, and the Paperwork Reduc- file your return within 3 years from photographs and calling come. For details, see Pub. 54. tion Act of 1980 require that when the date the return was due (includ- 1-800-THE-LOST we ask you for information, we ing extensions) to get that refund. (1-800-843-5678) if you recognize Foreign financial assets. If you must first tell you what our legal See chapter 1, later. a child. had foreign financial assets in right is to ask for the information, 2023, you may have to file Form Frivolous tax returns. The IRS why we are asking for it, how it will 8938 with your return. See Form has published a list of positions be used, what could happen if we Introduction This publication covers the general What is in this publication. This publications are provided for your Pub. 587, Business Use of rules for filing a federal income tax publication begins with the rules for information. Your Home. return. It supplements the informa- filing a tax return. It explains: Help from the IRS. There are tion contained in your tax form in- Icons. Small graphic symbols, 1. Who must file a return, many ways you can get help from structions. It explains the tax law to or icons, are used to draw your at- the IRS. These are explained un- make sure you pay only the tax you 2. When the return is due, tention to special information. See der How To Get Tax Help at the owe and no more. Table 1 for an explanation of each 3. How to e-file your return, and end of this publication. icon used in this publication. How this publication is ar- 4. Other general information. Comments and suggestions. ranged. Pub. 17 closely follows What is not covered in this pub- We welcome your comments about Form 1040, U.S. Individual Income It will help you identify which filing lication. Some material that you this publication and suggestions for Tax Return, and Form 1040-SR, status you qualify for, whether you may find helpful is not included in future editions. U.S. Tax Return for Seniors, and can claim any dependents, and this publication but can be found in their three Schedules 1 through 3. your tax form instructions booklet. You can send us comments whether the income you receive is Pub. 17 is divided into four parts. This includes lists of: through IRS.gov/FormComments. taxable. The publication goes on to Each part is further divided into Or, you can write to the Internal explain the standard deduction, the Where to report certain items chapters, most of which generally Revenue Service, Tax Forms and kinds of expenses you may be able shown on information docu- discuss one line of the form or one Publications, 1111 Constitution to deduct, and the various kinds of ments, and line of one of the three schedules. Ave. NW, IR-6526, Washington, credits you may be able to take to The introduction at the beginning Tax Topics you can read at DC 20224. reduce your tax. of each part lists the schedule(s) IRS.gov/TaxTopics. Although we can’t respond indi- Throughout this publication are discussed in that part. vidually to each comment received, examples showing how the tax law If you operate your own busi- The table of contents inside the we do appreciate your feedback applies in typical situations. Also ness or have other self-employ- front cover, the introduction to each and will consider your comments throughout this publication are ment income, such as from baby- part, and the index in the back of and suggestions as we revise our flowcharts and tables that present sitting or selling crafts, see the the publication are useful tools to tax forms, instructions, and publi- tax information in an easy-to-un- following publications for more in- help you find the information you cations. Don’t send tax questions, derstand manner. formation. need. tax returns, or payments to the Many of the subjects discussed Pub. 334, Tax Guide for Small above address. in this publication are discussed in Business. greater detail in other IRS publica- Getting answers to your tax tions. References to those other Pub. 225, Farmer's Tax Guide. questions. If you have a tax Publication 17 (2023) 3 question not answered by this pub- Getting tax forms, instruc- IRS.gov/OrderForms to order cur- forms and publications faster on- lication or the How To Get Tax Help tions, and publications. Go to rent forms, instructions, and publi- line. section at the end of this publica- IRS.gov/Forms to download cur- cations; call 800-829-3676 to order IRS mission. Provide America's tion, go to the IRS Interactive Tax rent and prior-year forms, instruc- prior-year forms and instructions. taxpayers top-quality service by Assistant page at IRS.gov/Help/ITA tions, and publications. The IRS will process your order for helping them understand and meet where you can find topics by using forms and publications as soon as Ordering tax forms, instruc- their tax responsibilities and en- the search feature or viewing the possible. Don’t resubmit requests tions, and publications. Go to force the law with integrity and fair- categories listed. you’ve already sent us. You can get ness to all. Publication 17 Changes Note. This publication does not cover the topics listed in the following table. Please see the primary publication. Chapter Removed Title of Chapter Primary Source 6 Tip Income Pub. 531, Reporting Tip Income 8 Dividends and Other Distributions Pub. 550, Investment Income and Expenses 9 Rental Income and Expenses Pub. 527, Residential Rental Property (Including Rental of Vacation Homes) 10 Retirement Plans, Pensions, and Annuities Pub. 575, Pension and Annuity Income 13 Basis of Property Pub. 551, Basis of Assets 14 Sale of Property Pub. 550 15 Selling Your Home Pub. 523, Selling Your Home 16 Reporting Gains and Losses Pub. 550 18 Alimony Pub. 504, Divorced or Separated Individuals 19 Education-Related Adjustments Pub. 970, Tax Benefits for Education 20 Other Adjustments to Income Pub. 463, Travel, Gift, and Car Expenses 22 Medical and Dental Expenses Pub. 502, Medical and Dental Expenses 24 Interest Expense Pub. 550 Pub. 936, Home Mortgage Interest Deduction 25 Charitable Contributions Pub. 561, Determining the Value of Donated Property Pub. 526, Charitable Contributions 26 Nonbusiness Casualty and Theft Losses Pub. 547, Casualties, Disasters, and Thefts 29 Tax on Unearned Income of Certain Minor Form 8615, Tax for Certain Children Who Children Have Unearned Income 30 Child and Dependent Care Credit Pub. 503, Child and Dependent Care Expenses 31 Credit for the Elderly or the Disabled Pub. 524, Credit for the Elderly or the Disabled 33 Education Credits Pub. 970, Tax Benefits for Education 34 Earned Income Credit (EIC) Pub. 596, Earned Income Credit (EIC) 35 Premium Tax Credit Pub. 974, Premium Tax Credit (PTC) 36 Other Credits 4 Publication 17 (2023) Table 1. Legend of Icons Icon Explanation Items that may cause you particular problems, or an alert about pending legislation that may be enacted after ! CAUTION this publication goes to print. An Internet site or an email address. An address you may need. Items you should keep in your personal records. RECORDS Items you may need to figure or a worksheet you may need to complete and keep for your records. An important phone number. TIP Helpful information you may need. Publication 17 (2023) 5 Part One. The four chapters in this part provide basic information on the tax system. The Income Tax They take you through the first steps of filling out a tax return. They also provide information about dependents, and discuss recordkeeping Return requirements, IRS e-file (electronic filing), certain penalties, and the two methods used to pay tax during the year: withholding and estimated tax. The Form 1040 and Form 1040-SR schedules that are discussed in these chapters are: Schedule 1, Additional Income and Adjustments to Income; and Schedule 3 (Part II), Other Payments and Refundable Credits. See payment plan details or apply for a Service in combat zone. You are allowed ex- new payment plan. tra time to take care of your tax matters if you 1. Make a payment, view 5 years of payment history and any pending or scheduled pay- are a member of the Armed Forces who served in a combat zone, or if you served in a combat ments. zone in support of the Armed Forces. See Indi- viduals Serving in Combat Zone, later, under Filing Access your tax records, including key data from your most recent tax return, your When Do I Have To File. economic impact payment amounts, and Adoption taxpayer identification number. If Information transcripts. a child has been placed in your home for purpo- ses of legal adoption and you won't be able to View digital copies of select notices from get a social security number for the child in time the IRS. to file your return, you may be able to get an What's New Approve or reject authorization requests adoption taxpayer identification number (ATIN). For more information, see Social Security Num- from tax professionals. ber (SSN), later. Due date of return. File Form 1040 or View your address on file or manage your 1040-SR by April 15, 2024. If you live in Maine communication preferences. Taxpayer identification number for aliens. If or Massachusetts, you have until April 17, 2024, you or your dependent is a nonresident or resi- because of the Patriots’ Day and Emancipation Go to IRS.gov/SecureAccess to view the required identity authentication process. dent alien who doesn't have and isn't eligible to Day holidays. get a social security number, file Form W-7, Ap- Change of address. If you change your ad- plication for IRS Individual Taxpayer Identifica- New lines on Schedule 3. This year Schedule dress, you should notify the IRS. You can use tion Number, with the IRS. For more informa- 3 has new lines. Form 8822 to notify the IRS of the change. See tion, see Social Security Number (SSN), later. Line 5a will be used to report the residen- Change of Address, later, under What Happens After I File. Individual taxpayer identification number tial clean energy credit from Form 5695. (ITIN) renewal. Some ITINs must be renewed. Line 5b will be used to report the energy Enter your social security number. You must If you haven't used your ITIN on a U.S. tax re- efficient home improvement credit from enter your social security number (SSN) in the turn at least once for tax years 2020, 2021, or Form 5695. spaces provided on your tax return. If you file a 2022, it has expired and must be renewed if you joint return, enter the SSNs in the same order need to file a U.S. federal tax return. You don't Line 6m will be used to report the credit for as the names. previously owned clean vehicles from Form need to renew your ITIN if you don't need to file 8936. Direct deposit of refund. Instead of getting a a federal tax return. You can find more informa- paper check, you may be able to have your re- tion at IRS.gov/ITIN. Line 13c will be used to report the elective payment election amount from Form 3800. fund deposited directly into your account at a ITINs assigned before 2013 have ex- bank or other financial institution. See Direct TIP pired and must be renewed if you need Who must file. Generally, the amount of in- Deposit under Refunds, later. If you choose di- to file a tax return. If you previously come you can receive before you must file a re- rect deposit of your refund, you may be able to submitted a renewal application and it was ap- turn has been increased. See Table 1-1, Ta- split the refund among two or three accounts. proved, you do not need to renew again unless ble 1-2, and Table 1-3 for the specific amounts. you haven't used your ITIN on a federal tax re- Pay online or by phone. If you owe additional tax, you may be able to pay online or by phone. turn at least once for tax years 2020, 2021, or Reminders See How To Pay, later. 2022. Installment agreement. If you can’t pay the Frivolous tax submissions. The IRS has File online. Rather than filing a return on pa- full amount due with your return, you may ask to published a list of positions that are identified as per, you may be able to file electronically using make monthly installment payments. See In- frivolous. The penalty for filing a frivolous tax re- IRS e-file. For more information, see Why stallment Agreement, later, under Amount You turn is $5,000. Also, the $5,000 penalty will ap- Should I File Electronically, later. Owe. You may be able to apply online for a pay- ply to other specified frivolous submissions. For ment agreement if you owe federal tax, interest, more information, see Civil Penalties, later. Access your online account (individual tax- and penalties. payers only). Go to IRS.gov/Account to se- Automatic 6-month extension. You can get curely access information about your federal tax account. an automatic 6-month extension to file your tax Introduction return if, no later than the date your return is View the amount you owe and a break- due, you file Form 4868. See Automatic This chapter discusses the following topics. down by tax year. Extension, later. Whether you have to file a return. 6 Chapter 1 Filing Information Publication 17 (2023)  How to file electronically. Table 1-1. 2023 Filing Requirements for Most Taxpayers How to file for free. When, how, and where to file your return. THEN file a return if AND at the end of 2023 you your gross income What happens if you pay too little or too IF your filing status is... were...* was at least...** much tax. Single under 65 $13,850 What records you should keep and how long you should keep them. 65 or older $15,700 How you can change a return you have al- Married filing jointly*** under 65 (both spouses) $27,700 ready filed. 65 or older (one spouse) $29,200 Do I Have To 65 or older (both spouses) $30,700 File a Return? Married filing separately any age $5 Head of household under 65 $20,800 You must file a federal income tax return if you are a citizen or resident of the United States or 65 or older $22,650 a resident of Puerto Rico and you meet the filing Qualifying surviving spouse under 65 $27,700 requirements for any of the following categories that apply to you. 65 or older $29,200 1. Individuals in general. (There are special rules for individuals whose spouse has * If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse died, executors, administrators, legal rep- died in 2023 or if you are preparing a return for someone who died in 2023, see Pub. 501.) resentatives, U.S. citizens and residents ** Gross income means all income you received in the form of money, goods, property, and services that living outside the United States, residents isn't exempt from tax, including any income from sources outside the United States or from the sale of of Puerto Rico, and individuals with in- your main home (even if you can exclude part or all of it). Don't include any social security benefits unless come from U.S. territories.) (a) you are married filing a separate return and you lived with your spouse at any time during 2023, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more 2. Dependents. than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the Instructions for Form 1040 or 3. Certain children under age 19 or full-time Pub. 915 to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a students. business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring 4. Self-employed persons. gross income, don't reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. 5. Aliens. *** If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross The filing requirements for each category are income was at least $5, you must file a return regardless of your age. explained in this chapter. (even if you can exclude all or part of it). Include Profit or Loss From Business; and line 9 of The filing requirements apply even if you part of your social security benefits if: Schedule F (Form 1040), Profit or Loss From don't owe tax. Farming. See Self-Employed Persons, later, for 1. You were married, filing a separate return, Even if you don't have to file a return, it more information about your filing requirements. and you lived with your spouse at any time TIP may be to your advantage to do so. during 2023; or If you don't report all of your self-em- See Who Should File, later. ployment income, your social security 2. Half of your social security benefits plus ! benefits may be lower when you retire. your other gross income and any tax-ex- CAUTION File only one federal income tax return for the year regardless of how many empt interest is more than $25,000 ! CAUTION jobs you had, how many Forms W-2 ($32,000 if married filing jointly). Filing status. Your filing status depends on whether you are single or married and on your you received, or how many states you lived in family situation. Your filing status is determined If either (1) or (2) applies, see the Instructions during the year. Don't file more than one original on the last day of your tax year, which is De- for Form 1040 or Pub. 915 to figure the social return for the same year, even if you haven’t re- cember 31 for most taxpayers. See chapter 2 security benefits you must include in gross in- ceived your refund or haven’t heard from the for an explanation of each filing status. come. IRS since you filed. Common types of income are discussed in Age. If you are 65 or older at the end of the Part Two of this publication. year, you can generally have a higher amount of Individuals—In General Community property states. Community gross income than other taxpayers before you property states include Arizona, California, must file. See Table 1-1. You are considered 65 If you are a U.S. citizen or resident, whether you Idaho, Louisiana, Nevada, New Mexico, Texas, on the day before your 65th birthday. For exam- must file a return depends on three factors. Washington, and Wisconsin. If you and your ple, if your 65th birthday is on January 1, 2024, spouse lived in a community property state, you you are considered 65 for 2023. 1. Your gross income. must usually follow state law to determine what 2. Your filing status. is community property and what is separate in- Surviving Spouses, 3. Your age. come. For details, see Form 8958 and Pub. Executors, Administrators, 555. and Legal Representatives To find out whether you must file, see Ta- ble 1-1, Table 1-2, and Table 1-3. Even if no ta- Nevada, Washington, and California do- You must file a final return for a decedent (a per- ble shows that you must file, you may need to mestic partners. A registered domestic part- son who died) if both of the following are true. file to get money back. See Who Should File, ner in Nevada, Washington, or California must generally report half the combined community Your spouse died in 2023 or you are the later. executor, administrator, or legal represen- income of the individual and their domestic Gross income. This includes all income you tative. partner. See Pub. 555. receive in the form of money, goods, property, The decedent met the filing requirements and services that isn't exempt from tax. It also Self-employed individuals. If you are at the date of death. includes income from sources outside the Uni- self-employed, your gross income includes the ted States or from the sale of your main home amount on line 7 of Schedule C (Form 1040), Publication 17 (2023) Chapter 1 Filing Information 7  For more information on rules for filing a de- cedent's final return, see Pub. 559. doesn't pay the tax due on this income, the pa- rent is liable for the tax. Aliens Your status as an alien (resident, nonresident, U.S. Citizens and Resident Aliens Certain Children Under or dual-status) determines whether and how Living Abroad you must file an income tax return. Age 19 or Full-Time The rules used to determine your alien sta- To determine whether you must file a return, in- clude in your gross income any income you re- Students tus are discussed in Pub. 519. ceived abroad, including any income you can Resident alien. If you are a resident alien for exclude under the foreign earned income exclu- If a child's only income is interest and dividends the entire year, you must file a tax return follow- sion. For information on special tax rules that (including capital gain distributions and Alaska ing the same rules that apply to U.S. citizens. may apply to you, see Pub. 54. It is available on- Permanent Fund dividends), the child was un- Use the forms discussed in this publication. line and at most U.S. embassies and consu- der age 19 at the end of 2023 or was a full-time lates. See How To Get Tax Help in the back of student under age 24 at the end of 2023, and Nonresident alien. If you are a nonresident this publication. certain other conditions are met, a parent can alien, the rules and tax forms that apply to you elect to include the child's income on the pa- are different from those that apply to U.S. citi- rent's return. If this election is made, the child zens and resident aliens. See Pub. 519 to find Residents of Puerto Rico doesn't have to file a return. See Instructions for out if U.S. income tax laws apply to you and If you are a U.S. citizen and also a bona fide Form 8814, Parents’ Election To Report Child’s which forms you should file. resident of Puerto Rico, you must generally file Interest and Dividends. Dual-status taxpayer. If you are a resident a U.S. income tax return for any year in which alien for part of the tax year and a nonresident you meet the income requirements. This is in addition to any legal requirement you may have Self-Employed Persons alien for the rest of the year, you are a dual-sta- tus taxpayer. Different rules apply for each part to file an income tax return with Puerto Rico. You are self-employed if you: of the year. For information on dual-status tax- If you are a bona fide resident of Puerto Rico payers, see Pub. 519. for the entire year, your U.S. gross income Carry on a trade or business as a sole pro- doesn't include income from sources within prietor, Puerto Rico. It does, however, include any in- Are an independent contractor, Who Should File come you received for your services as an em- ployee of the United States or a U.S. agency. If Are a member of a partnership, or Even if you don't have to file, you should file a you receive income from Puerto Rican sources Are in business for yourself in any other federal income tax return to get money back if that isn't subject to U.S. tax, you must reduce way. any of the following conditions apply. your standard deduction. As a result, the Self-employment can include work in addi- 1. You had federal income tax withheld or amount of income you must have before you are tion to your regular full-time business activities, made estimated tax payments. required to file a U.S. income tax return is lower such as certain part-time work you do at home than the applicable amount in Table 1-1 or Ta- 2. You qualify for the earned income credit. or in addition to your regular job. ble 1-2. For more information, see Pub. 570. See Pub. 596 for more information. You must file a return if your gross income is at least as much as the filing requirement 3. You qualify for the additional child tax Individuals With Income From amount for your filing status and age (shown in credit. See chapter 14 for more informa- U.S. Territories Table 1-1). Also, you must file Form 1040 or tion. If you had income from Guam, the Common- 1040-SR and Schedule SE (Form 1040), 4. You qualify for the premium tax credit. See wealth of the Northern Mariana Islands, Ameri- Self-Employment Tax, if: Pub. 974 for more information. can Samoa, or the U.S. Virgin Islands, special 1. Your net earnings from self-employment rules may apply when determining whether you 5. You qualify for the American opportunity (excluding church employee income) were must file a U.S. federal income tax return. In ad- credit. See Pub. 970 for more information. $400 or more, or dition, you may have to file a return with the indi- 6. You qualify for the credit for federal tax on vidual island government. See Pub. 570 for 2. You had church employee income of fuels. See chapter 13 for more information. more information. $108.28 or more. (See Table 1-3.) Dependents Use Schedule SE (Form 1040) to figure your self-employment tax. Self-employment tax is Form 1040 or 1040-SR comparable to the social security and Medicare Use Form 1040 or 1040-SR to file your return. If you are a dependent (one who meets the de- tax withheld from an employee's wages. For (But also see Why Should I File Electronically, pendency tests in chapter 3), see Table 1-2 to more information about this tax, see Pub. 334. later.) find out whether you must file a return. You must Employees of foreign governments or in- also file if your situation is described in Ta- You can use Form 1040 or 1040-SR to re- ternational organizations. If you are a U.S. ble 1-3. port all types of income, deductions, and cred- citizen who works in the United States for an in- Responsibility of parent. Generally, a child is ternational organization, a foreign government, its. responsible for filing their own tax return and for or a wholly owned instrumentality of a foreign paying any tax on the return. If a dependent child must file an income tax return but can’t file government, and your employer isn't required to withhold social security and Medicare taxes Why Should I File due to age or any other reason, then a parent, from your wages, you must include your earn- Electronically? guardian, or other legally responsible person ings from services performed in the United must file it for the child. If the child can’t sign the States when figuring your net earnings from return, the parent or guardian must sign the self-employment. Electronic Filing child's name followed by the words “By (your signature), parent for minor child.” Ministers. You must include income from If your adjusted gross income (AGI) is less than services you performed as a minister when fig- a certain amount, you are eligible for Free File, Child's earnings. Amounts a child earns by uring your net earnings from self-employment, a free tax software service offered by IRS part- performing services are included in the child’s unless you have an exemption from self-em- ners, to prepare and e-file your return for free. If gross income and not the gross income of the ployment tax. This also applies to Christian Sci- your income is over the amount, you are still eli- parent. This is true even if under local law the ence practitioners and members of a religious gible for Free File Fillable Forms, an electronic child's parent has the right to the earnings and order who have not taken a vow of poverty. For version of IRS paper forms. Table 1-4 lists the may actually have received them. But if the child more information, see Pub. 517. free ways to electronically file your return. 8 Chapter 1 Filing Information Publication 17 (2023) Table 1-2. 2023 Filing Requirements for Dependents each need to create a PIN and enter these PINs as your electronic signatures. See chapter 3 to find out if someone can claim you as a dependent. A PIN is any combination of five digits you choose except five zeros. If you use a PIN, there If your parents (or someone else) can claim you as a dependent, use this table to see if you is nothing to sign and nothing to mail—not even must file a return. (See Table 1-3 for other situations when you must file.) your Forms W-2. In this table, unearned income includes taxable interest, ordinary dividends, and capital gain Your electronic return is considered a valid distributions. It also includes unemployment compensation, taxable social security benefits, signed return only when it includes your PIN; pensions, annuities, and distributions of unearned income from a trust. Earned income includes last name; date of birth; IP PIN, if applicable; salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. (See and AGI from your originally filed 2022 federal Scholarships and fellowships in chapter 8.) Gross income is the total of your earned and income tax return, if applicable. If you're filing unearned income. jointly, your electronic return must also include your spouse's PIN; last name; date of birth; IP Single dependents—Were you either age 65 or older or blind? PIN, if applicable; and AGI, if applicable, in or- No. You must file a return if any of the following apply. der to be considered validly signed. Don't use Your unearned income was more than $1,250. AGI from an amended return (Form 1040-X) or a math error correction made by the IRS. AGI is Your earned income was more than $13,850. the amount shown on your 2022 Form 1040 or Your gross income was more than the larger of: Form 1040-SR, line 11. If you don't have your $1,250 or 2022 income tax return, you can request a tran- Your earned income (up to $13,450) plus $400. script by using our automated self-service tool. Go to IRS.gov/Transcript. (If you filed electroni- Yes. You must file a return if any of the following apply. cally last year, you, and your spouse if filing Your unearned income was more than $3,100 ($4,950 if 65 or older and blind). jointly, may use your prior year PIN to verify your Your earned income was more than $15,700 ($17,550 if 65 or older and blind). identity instead of your prior year AGI. The prior Your gross income was more than the larger of: year PIN is the five-digit PIN you used to elec- tronically sign your 2022 return.) You will also be $3,100 ($4,950 if 65 or older and blind), or prompted to enter your date of birth. Your earned income (up to $13,450) plus $2,250 ($4,100 if 65 or older and blind). You can’t use the Self-Select PIN ! method if you are a first-time filer under Married dependents—Were you either age 65 or older or blind? CAUTION age 16 at the end of 2023. No. You must file a return if any of the following apply. Practitioner PIN. The Practitioner PIN method Your unearned income was more than $1,250. allows you to authorize your tax practitioner to Your earned income was more than $13,850. enter or generate your PIN. Your electronic re- Your gross income was at least $5 and your spouse files a separate return and turn is considered a validly signed return only itemizes deductions. when it includes your PIN; last name; date of Your gross income was more than the larger of: birth; and IP PIN, if applicable. If you’re filing jointly, your electronic return must also include $1,250, or your spouse’s PIN; last name; date of birth; and Your earned income (up to $13,450) plus $400. IP PIN, if applicable, in order to be considered a Yes. You must file a return if any of the following apply. validly signed return. The practitioner can pro- vide you with details. Your unearned income was more than $2,750 ($4,250 if 65 or older and blind). Your earned income was more than $15,350 ($16,850 if 65 or older and blind). Form 8453. You must send in a paper Form Your gross income was at least $5 and your spouse files a separate return and 8453 if you have to attach certain forms or other itemizes deductions. documents that can’t be electronically filed. For details, see Form 8453. For more details, visit Your gross income was more than the larger of: IRS.gov/efile. $2,750 ($4,250 if 65 or older and blind), or Identity Protection PIN. If the IRS gave you Your earned income (up to $13,450) plus $1,900 ($3,400 if 65 or older and an identity protection personal identification blind). number (IP PIN), enter it in the spaces provided on your tax form. If the IRS hasn’t given you this IRS e-file uses automa- return electronically using a personal identifica- type of number, leave these spaces blank. For tion to replace most of the tion number (PIN). If you are filing online, you more information, see the Instructions for Form manual steps needed to process paper returns. must use a Self-Select PIN. For 2023, if we is- 1040. As a result, the processing of e-file returns is sued you an identity protection personal identifi- faster and more accurate than the processing of cation number (IP PIN) (as described in more All taxpayers are now eligible for an IP paper returns. However, as with a paper return, detail below), all six digits of your IP PIN must TIP PIN. For more information, see Pub. you are responsible for making sure your return appear in the IP PIN spaces provided next to 5477. To apply for an IP PIN, go to contains accurate information and is filed on the space for your occupation for your elec- IRS.gov/IPPIN and use the Get an IP PIN tool. time. tronic signature to be complete. Failure to in- clude an issued IP PIN on the electronic return Power of attorney. If an agent is signing your If your return is filed with IRS e-file, you will re- will result in an invalid signature and a rejected return for you, a power of attorney (POA) must ceive an acknowledgment that your return was return. If you are filing a joint return and both be filed. Attach the POA to Form 8453 and file it received and accepted. If you owe tax, you can taxpayers were issued an IP PIN, enter both IP using that form's instructions. See Sig