Your Federal Publication 17 For use in preparing Income Tax 2025 Returns For Individuals



2025 TAX GUIDE



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Publication 17 (2025) Catalog Number 10311G

Jan 13, 2026 Department of the Treasury Internal Revenue Service www.irs.gov

Your Federal

Income Tax

For Individuals





Contents


What’s New . . . . . . . . . . . . . . . . . . . . . . . 1 11 Taxes . . . . . . . . . . . . . . . . . . . . . . 96

12 Other Itemized Deductions . . . . . . . . . 101

Reminders . . . . . . . . . . . . . . . . . . . . . . . . 2

Part Four. Figuring Your Taxes, and

Introduction . . . . . . . . . . . . . . . . . . . . . . . 3 Refundable and Nonrefundable Credits . . 106

Part One. The Income Tax Return . . . . . . . . . . 6 14 Child Tax Credit and Credit for Other 13 How To Figure Your Tax . . . . . . . . . . . 106

1 Filing Information . . . . . . . . . . . . . . . . 6 Dependents . . . . . . . . . . . . . . . . . 108 2 Filing Status . . . . . . . . . . . . . . . . . . . 21

3 Dependents . . . . . . . . . . . . . . . . . . . 26 2025 Tax Table . . . . . . . . . . . . . . . . . . . . . 111

4 Tax Withholding and Estimated Tax . . . . . 37

2025 Tax Computation Worksheet . . . . . . . . 123

Part Two. Income and Adjustments

to Income . . . . . . . . . . . . . . . . . . . . . 46 2025 Tax Rate Schedules . . . . . . . . . . . . . . 124

6 Interest Income Your Rights as a Taxpayer . . . . . . . . . . . . . 126 . . . . . . . . . . . . . . . . . 5 Wages, Salaries, and Other Earnings . . . . 47

54

7 Social Security and Equivalent Railroad How To Get Tax Help . . . . . . . . . . . . . . . . . 127 Retirement Benefits . . . . . . . . . . . . . .

62

8 Other Income . . . . . . . . . . . . . . . . . . 66 Index . . . . . . . . . . . . . . . . . . . . . . . . . . 129 9 Individual Retirement Arrangements

(IRAs) . . . . . . . . . . . . . . . . . . . . . 77 Where To File . . . . . . . . . . . . . . . . . . . . . 140

Part Three. Standard Deduction, Itemized

Deductions, and Other Deductions . . . . . . 92

10 Standard Deduction . . . . . . . . . . . . . . 92

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 differing interpretations are resolved by higher court • Tax laws enacted by Congress, Income Tax (2025) decisions or in some other way, this publication will • Treasury regulations, and would be appropriate. continue to present the interpretations by the IRS.

• Court decisions. All taxpayers have important rights when working with

However, the information given does not cover every a Taxpayer the IRS. These rights are described under Your Rights as 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 Main home was in the United direct deposit for any refunds. The eligible for an enhanced se-tax changes that took effect in States. If your main home (and IRS recommends paying electroni- nior deduction. Your deduc-2025. Most of these changes are spouse if filing a joint return) was in cally whenever possible. Options tion will be limited if your discussed in more detail the United States for over half of to pay electronically include using modified adjusted gross in-

throughout this publication. 2025, check the box on the front of your bank account with Direct Pay, come is more than $75,000



Future developments. For the Form 1040 or 1040-SR. Providing your debit or credit card, your digi- ($150,000 if married filing this information will help the IRS tal wallet, or your online account. jointly). To be eligible, you latest information about the tax law determine your eligibility for certain Go to IRS.gov/Payments to see all and/or your spouse must have topics covered in this publication, tax benefits, including the earned your payment options. Also, see a valid SSN. If you are mar- such as legislation enacted after it income credit. ModernPayments . ried, you must file a joint re- was published, go to IRS.gov/ turn. The maximum amount of Pub17 . Changes to the Dependents New deductions for itemizers the deduction is $6,000 section. The Dependents section Who must file. Generally, the and non-itemizers. Recent legis- ($12,000 if both spouses are now has numbered rows and asks amount of income you can receive lation provided for four new deduc- eligible). for more information about you and before you must file a return has tions that take effect beginning in your dependents. This new infor- been increased. For more informa- 2025. If you are eligible, you can Deferral of gain invested in a mation is being asked to help the tion, see chapter 1 , later. claim these deductions if you take qualified opportunity fund IRS determine your eligibility for the standard deduction or if you (QOF). Taxpayers who made a Due date of return. File Form certain tax benefits, including the itemize on Schedule A (Form deferral election in a QOF that 1040 or 1040-SR by April 15, 2026. child tax credit, the credit for other 1040). For more information on meets the 7-year holding period See chapter 1 , later. dependents, and the earned in- these deductions, see the instruc- threshold may be eligible for a ba- Trump account and new Form come credit. tions for Schedule 1-A (Form sis adjustment. See the Instruc- 4547. Recent legislation allows 1040). The new deductions are as tions for Schedule D (Form 1040); Write-in information. Beginning parents, guardians, and other au- follows. and Form 8997, Initial and Annual in 2025, most of the words, codes, thorized individuals to elect to es- Statement of Qualified Opportunity and/or dollar amounts that are • No tax on tips. You may be tablish a new type of individual re- Fund (QOF) Investments, and its used to explain an item of income eligible to take a deduction for tirement account, called a Trump instructions for additional informa- or deduction, and that you previ- qualified tips paid to you in account, for the exclusive benefit of tion regarding QOFs. ously had to enter next to specific 2025. You can’t deduct more certain children. If the child was lines, now have a dedicated check- than $25,000 of those tips. born after 2024 and before 2029, is Deferred compensation contri- box or entry space. Your deduction will be limited a U.S. citizen, and meets certain bution limit increased. If you if your modified adjusted other requirements, the authorized Death of a taxpayer. If you need participate in a 401(k) plan, 403(b) gross income is more than individual may also elect to receive to file a return for someone who plan, or the federal government’s $150,000 ($300,000 if married a $1,000 pilot program contribution died before filing a 2025 return, Thrift Savings Plan, the total an- filing jointly). To be eligible, to the child’s Trump account. Both check the “Deceased” box at the nual amount you can contribute for you and/or your spouse who elections can be made on Form top of Form 1040 or 1040-SR and 2025 is increased to: received the tips must have a 4547, which can be filed at the enter the date of death. For more • $23,500; valid social security number same time as the authorized indi- information, see Death of a Tax- (SSN). If you are married, you • $31,000 if age 50 or older; or vidual’s 2025 income tax return. payer in the Instructions for Form must file a joint return. For more information on Trump ac- 1040. • $37,750 if age 60, 61, 62, or counts, and to learn how to make • No tax on overtime. If you 63 at the end of 2025. Contributions to a governmen- these elections, see Form 4547 earned qualified overtime, you tal paid family leave program. This also applies to most sec- and its instructions. may be eligible to deduct up Beginning in 2025, if you made tion 457 plans. to $12,500 ($25,000 if married Standard deduction amount in- contributions to a governmental filing jointly) of your qualified New Schedule 1-A. A new creased. For 2025, the standard paid family leave program, you will overtime compensation. Your deduction amount has been in- schedule to Form 1040, Schedule now include the full amount of deduction will be limited if 1-A, has been created for taxpay- creased for all filers. The amounts those contributions in your income. your modified adjusted gross ers to claim a deduction for the re- are: If you itemize your deductions on income is more than $150,000 cently enacted deductions for no Schedule A (Form 1040), you can • Single or Married filing sepa- ($300,000 if married filing tax on tips, no tax on overtime, no include the amounts contributed as rately—$15,750; jointly). To be eligible, you tax on car loan interest, and the en- part of the state and local taxes • Married filing jointly or Qualify- and/or your spouse who re- hanced senior deduction. For more that you paid. ing surviving ceived the overtime must have information, see the instructions for Form 1099-DA. If, in 2025, you spouse—$31,500; and a valid SSN. If you are mar- Schedule 1-A in the Instructions for used a broker to effect the sale of a ried, you must file a joint re- Form 1040. • Head of household—$23,625. digital asset, your broker should turn. State and local tax deduction See chapter 10 , later. send you a Form 1099-DA that re- • No tax on car loan interest. ports information regarding the limit increased. The overall limit Higher catch-up contribution If you paid or accrued quali- transaction. In 2025, your broker on the deduction for state and local limit for ages 60 to 63. If, at the fied passenger vehicle loan in- has the option to report your basis income, sales, and property taxes end of 2025, you were at least age terest on a vehicle you pur- in the digital asset on Form has increased to $40,000 ($20,000 60, but younger than age 64, and chased in 2025 for personal 1099-DA but is not required to do if married filing separately). The you participated in a deferred com- use, you may be eligible to de- so. Even if you receive a Form overall limit is reduced if your modi- pensation plan (including most duct up to $10,000 of that in- 1099-DA, you must still answer the fied adjusted gross income is more 401(k), 403(b), and governmental terest. Your deduction will be digital assets question on page 1 of than $500,000 ($250,000 if married 457 plans, and the governmental limited if your modified adjus- Form 1040 or 1040-SR. For more filing separately) but will not be re- Thrift Savings Plan), a higher ted gross income is more than information, see the Instructions for duced below $10,000 ($5,000 if catch-up contribution limit may ap- $100,000 ($200,000 if married Form 1099-DA. married filing separately). For more ply to you. For 2025, this higher filing jointly). information, see the Instructions for catch-up contribution limit is Electronic payments and direct Schedule A (Form 1040). • Enhanced deduction for se- $11,250. For more information, deposit. If you have access to niors. If you were born before contact your plan administrator and U.S. banking services or electronic SSN or individual taxpayer iden- January 2, 1961, you may be see Pub. 590-A. payment systems, you should use tification number (ITIN) needed

Publication 17 (2025) 1 to claim the credit for other de- Schedule 2 (Form 1040) and work, your deduction for contribu- your spouse at any time dur-pendents. Beginning in 2025, to Schedule 3 (Form 1040). Also, see tions to a traditional IRA is reduced ing the year, and your modi-be eligible to claim the credit for Form 1062, Deferral of Tax on Gain (phased out) if your modified AGI fied AGI is more than zero. other dependents, you, or your From the Sale or Exchange of is: You can’t make a Roth IRA





spouse if filing jointly, must have a Qualified Farmland Property to contribution if your modified • More than $126,000 but less valid SSN or ITIN issued on or be-Qualified Farmers, and its instruc-AGI is $10,000 or more. See than $146,000 for a married fore the due date of your return (in-tions. Can You Contribute to a Roth couple filing a joint return or a cluding extensions). IRA in chapter 9 , later. Domestic research and experi-qualifying surviving spouse, Changes to the adoption credit. mental expenditures. Beginning 2026 modified AGI limits. You • More than $79,000 but less Recent legislation made changes in 2025, taxpayers are allowed to can find information about the 2026 than $89,000 for a single indi-to the adoption credit. Beginning in deduct domestic research and ex-contribution and modified AGI lim-vidual or head of household, 2025, the following changes apply. perimental expenditures. Alterna-its in Pub. 590-A. or tively, taxpayers may elect to • Up to $5,000 of adoption Tax law changes for 2026. When • Less than $10,000 for a mar-charge their domestic research credit is refundable. Up to you figure how much income tax ried individual filing a separate and experimental expenditures to a $5,000 of your adoption credit you want withheld from your pay return. capital account and deduct them may be refundable. The and when you figure your estima-ratably over a period of not less If you either live with your spouse amount of the refundable por-ted tax, consider tax law changes than 60 months (beginning with the or file a joint return, and your tion is determined separately effective in 2026. For more infor-month in which the taxpayers first spouse is covered by a retirement for each eligible child. mation, see Pub. 505. realize the benefits from such plan at work but you aren’t, your • Parity for Indian Tribal gov-expenditures). deduction is phased out if your Alternative minimum tax (AMT) ernments. Tribal govern-modified AGI is more than exemption amount increased. Health flexible spending ar-ments now have parity for $236,000 but less than $246,000. If The AMT exemption amount is in-rangements (health FSAs) un-special needs adoption deter-your modified AGI is $246,000 or creased to $88,100 ($137,000 if der cafeteria plans. For tax years minations. This means that more, you can’t take a deduction married filing jointly or qualifying beginning in 2025, the dollar limita-state government and Indian for contributions to a traditional surviving spouse; $68,500 if mar-tion under section 1251(i) on volun-Tribal government determina-IRA. See How Much Can You De-ried filing separately). The income tary employee salary reductions for tions of special needs are duct in chapter 9 , later. levels at which the AMT exemption contributions to health FSAs is both recognized for purposes begins to phase out have in-$3,300. of the adoption credit. For Modified AGI limit for Roth IRA creased to $626,350 ($1,252,700 if contributions. For 2025, your more information, see Form Delayed refund for returns married filing jointly or qualifying 8839, Qualified Adoption Ex-Roth IRA contribution limit is re-claiming the ACTC. The IRS can-surviving spouse). penses, and its instructions. duced (phased out) in the following not issue refunds before mid-Feb-situations. Updated reporting requirements The adoption credit and the ex-ruary 2026 for returns that properly for Form 1099-K. Payment card clusion for employer-provided claim the ACTC. This time frame • Your filing status is married fil-companies, payment apps, and on-adoption benefits are both $17,280 applies to the entire refund, not just ing jointly or qualifying surviv-line marketplaces will be required per eligible child in 2025. The the portion associated with the ing spouse and your modified to send you a Form 1099-K only if amount begins to phase out if you ACTC. AGI is at least $236,000. You the amount of your business trans-can’t make a Roth IRA contri-have modified AGI in excess of actions during the year is more Standard mileage rate. The $259,190 and is completely bution if your modified AGI is than $20,000 and the total number 2025 rate for business use of a ve-phased out if your modified AGI is $246,000 or more. hicle is 70 cents a mile. The 2025 of your transactions is more than $299,190 or more. • Your filing status is single, 200. rate for use of your vehicle to do head of household, or married Election to pay tax on farmland volunteer work for certain charita-New option for scheduled ap-filing separately and you didn’t sale or exchange in install-ble organizations is 14 cents a pointments at Taxpayer Assis-live with your spouse at any ments. If your tax year began after mile. The 2025 rate for operating tance Centers (TACs). Beginning time in 2025 and your modi-July 4, 2025, and you sold or ex-expenses for a car when you use it in 2025, taxpayers with scheduled fied AGI is at least $150,000. changed qualified farmland to a for medical reasons is 21 cents a appointments at TACs may choose You can’t make a Roth IRA qualified farmer after that date, you mile. to receive appointment confirma-contribution if your modified can elect to pay the net income tax tions, reminders, and cancellation Modified adjusted gross income AGI is $165,000 or more. liability on the sale or exchange in notices directly via text message (AGI) limit for traditional IRA four equal installments. For more • Your filing status is married fil-on their mobile devices. contributions. For 2025, if you information, see the instructions for ing separately, you lived with are covered by a retirement plan at




Reminders

Listed below are important theft and how to reduce your risk exceed 400% of the federal poverty provided only to the person who le-

reminders and other items that may from it, see chapter 1, later. line and generally increases the gally has a right to the data. Tax-help you file your 2025 tax return. Taxpayer identification numbers credit amounts. For more informa- payers using the new mo-Many of these items are explained (TINs). You must provide the TIN tion, see Pub. 974 and Form 8962 bile-friendly verification procedure in more detail later in this for each person for whom you and its instructions. can gain entry to existing IRS on-



publication. claim certain tax benefits. This ap- line services such as the Child Tax Identity verification. The IRS Secure your tax records from plies even if the person was born in Credit Update Portal, Online Ac-launched an improved identity veri-identity theft. Identity theft occurs 2025. Generally, this number is the count, Get Transcript Online, Get fication and sign-in process that when someone uses your personal person’s SSN. See chapter 1 , later. an Identity Protection PIN (IP PIN), enables more people to securely information, such as your name, Additional child tax credit and Online Payment Agreement. access and use IRS online tools SSN, or other identifying informa-(ACTC) amount. The maximum Additional IRS applications will and applications. To provide verifi-tion, without your permission, to ACTC amount is $1,700 for each transition to the new method over cation services, the IRS is using commit fraud or other crimes. An qualifying child. the next year. Each online service ID.me, a trusted technology pro-identity thief may use your SSN to Premium tax credit (PTC). The will also provide information that vider. The new process is one get a job or may file a tax return us-ARP expanded the PTC by will instruct taxpayers on the steps more step the IRS is taking to en-ing your SSN to receive a refund. eliminating the limitation that a tax-they need to follow for access to sure that taxpayer information is For more information about identity payer’s household income may not

2 Publication 17 (2025) the service. You can also see Automatic 6-month extension to penalty for filing a frivolous tax re- do not receive it; and whether your





IR-2021-228 for more information. file tax return. You can get an au- turn is $5,000. See chapter 1, later. response is voluntary, required to


ACTC and bona fide residents Filing erroneous claim for re-tomatic 6-month extension of time obtain a benefit, or mandatory un-

of Puerto Rico. Bona fide resi- fund or credit. You may have to to file your tax return. See chap- der the law. A complete statement

dents of Puerto Rico are no longer pay a penalty if you file an errone-ter 1, later. on this subject can be found in your

required to have three or more Payment of taxes. You can pay tax form instructions. ous claim for refund or credit. See



ble to claim the ACTC if they have vice using the IRS2Go app; or in they prepare and file. Your preparer You must authenticate your identity. cash, or by check or money order. may make you aware of this re- To securely log into your federal tax one or more qualifying children. Paying electronically is quick, easy, quirement and the options availa- account, go to IRS.gov/Account . and faster than mailing in a check claim the ACTC. Bona fide resi- payments online; from a mobile de- paid preparers must e-file returns Access your online account. dents of Puerto Rico may be eligi-qualifying children to be eligible to your taxes by making electronic chapter 1, later. Preparer e-file mandate. Most



are a U.S. citizen with income from chapter 1, Treasury Inspector General for your last 5 years of payment his- later. sources outside the United States Foreign-source income. If you View the amount you owe, review or money order. See ble to you.

tory, access online payment op- Tax Administration. If you want

(foreign income), you must report Faster ways to file your return. tions, and create or modify an on- to confidentially report misconduct, all such income on your tax return The IRS offers fast, accurate ways line payment agreement. You can waste, fraud, or abuse by an IRS unless it is exempt by law or a tax to file your tax return information also access your tax records on- employee, you can call



and whether or not you receive a chapter 1, later. have a speech disability, and are need health care coverage, go to using TTY/TDD equipment). You Form W-2 or Form 1099 from the Free electronic filing. You may HealthCare.gov to learn about can remain anonymous. foreign payer. This applies to be able to file your 2025 taxes on- health insurance options for you earned income (such as wages inside or outside the United States You can use IRS e-file (electronic if you are deaf, hard of hearing, or Health care coverage. If you filing). See treaty. This is true whether you live without filing a paper tax return. line. 800-366-4484 (call 800-877-8339

and tips) as well as unearned in- insurance, and how you might line for free. See chapter 1, later. and your family, how to buy health Photographs of missing chil-come (such as interest, dividends, Change of address. If you qualify to get financial assistance dren. The IRS is a proud partner

capital gains, pensions, rents, and change your address, notify the to buy health insurance. with the National Center for

royalties). IRS. See Missing & Exploited Children® chapter 1, later. (NCMEC)

States, you may be able to exclude Refund on a late-filed return. If children selected by the Center perwork Reduction Act informa- you were due a refund but you did If you live outside the United Disclosure, Privacy Act, and Pa- . Photographs of missing

part or all of your foreign earned in- tion. The IRS Restructuring and not file a return, you must generally may appear in this publication on

come. For details, see Pub. 54. Reform Act of 1998, the Privacy pages that would otherwise be file your return within 3 years from blank. You can help bring these Act of 1974, and the Paperwork the date the return was due (includ-



2025, you may have to file Form chapter 1, later. 1-800-THE-LOST we must first tell you what our legal (1-800-843-5678) if you recognize 8938 with your return. See Form Frivolous tax returns. The IRS right is to ask for the information; a child. 8938 and its instructions or go to has published a list of positions why we are asking for it; how it will IRS.gov/Form8938 had foreign financial assets in ing extensions) to get that refund. photographs and calling when we ask you for information, See Foreign financial assets. If you Reduction Act of 1980 require that children home by looking at the

for details. that are identified as frivolous. The be used; what could happen if we



Introduction

This publication covers the general 1. Who must file a return, Icons. Small graphic symbols, Help from the IRS. There are

rules for filing a federal income tax or icons, are used to draw your at- many ways you can get help from 2. When the return is due, return. It supplements the informa-tention to special information. See the IRS. These are explained un-

tion contained in your tax form in- 3. How to e-file your return, and Table 1 for an explanation of each der How To Get Tax Help at the



structions. It explains the tax law to icon used in this publication. end of this publication. 4. Other general information. make sure you pay only the tax you What is not covered in this pub-Comments and suggestions. owe and no more. It will help you identify which filing lication. Some material that you We welcome your comments about status you qualify for, whether you How this publication is ar-may find helpful is not included in this publication and suggestions for can claim any dependents, and ranged. Pub. 17 closely follows this publication but can be found in future editions. whether the income you receive is Form 1040, U.S. Individual Income your tax form instructions booklet. You can send us comments taxable. The publication goes on to Tax Return, and Form 1040-SR, This includes lists of: through IRS.gov/FormComments . explain the standard deduction, the U.S. Tax Return for Seniors, and Or you can write to the Internal • Where to report certain items kinds of expenses you may be able their three Schedules 1 through 3. Revenue Service, Tax Forms and shown on information docu-to deduct, and the various kinds of Pub. 17 is divided into four parts. Publications, 1111 Constitution ments, and credits you may be able to take to Each part is further divided into Ave. NW, IR-6526, Washington, reduce your tax. chapters, most of which generally • Tax Topics you can read at DC 20224. Throughout this publication are discuss one line of the form or one IRS.gov/TaxTopics . Although we can’t respond indi-examples showing how the tax law line of one of the three schedules. If you operate your own busi-vidually to each comment received, applies in typical situations. Also The introduction at the beginning ness or have other self-employ-we do appreciate your feedback throughout this publication are of each part lists the schedule(s) ment income, such as from baby-and will consider your comments flowcharts and tables that present discussed in that part. sitting or selling crafts, see the and suggestions as we revise our tax information in an easy-to-un-The table of contents inside the following publications for more in-tax forms, instructions, and publi-derstand manner. front cover, the introduction to each formation. cations. Don’t send tax questions, Many of the subjects discussed part, and the index in the back of tax returns, or payments to the in this publication are discussed in • Pub. 334, Tax Guide for Small the publication are useful tools to above address. greater detail in other IRS publica-Business. help you find the information you tions. References to those other need. • Pub. 225, Farmer’s Tax Guide. Getting answers to your tax publications are provided for your questions. If you have a tax ques-What is in this publication. This • Pub. 587, Business Use of information. tion not answered by this publica-publication begins with the rules for Your Home. tion or the How To Get Tax Help filing a tax return. It explains: section at the end of this

Publication 17 (2025) 3

publication, go to the IRS Interac- IRS.gov/Forms to download cur- IRS.gov/OrderForms to order cur- forms and publications faster on-

tive Tax Assistant page at IRS.gov/ rent and prior-year forms, instruc- rent forms, instructions, and publi- line.



viewing the categories listed. Ordering tax forms, instruc- prior-year forms and instructions. taxpayers top-quality service by The IRS will process your order for tions, and publications. Go to by using the search feature or IRS mission. Provide America’s Help/ITA where you can find topics tions, and publications. cations; call 800-829-3676 to order



tions, and publications. Go to Getting tax forms, instruc- forms and publications as soon as helping them understand and meet their tax responsibilities and en- possible. Don’t resubmit requests force the law with integrity and fair- 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 Schedule R (Form 1040), Credit for the

Elderly or the Disabled

33 Education Credits Pub. 970

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 (2025) 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 (2025) 5 Part One.





The Income Tax The four chapters in this part provide basic information on the tax system.


They take you through the first steps of filling out a tax return. They also

Return provide information about dependents, and discuss recordkeeping

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 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.



• Make a payment, view 5 years of payment in a combat zone, or if you served in a combat



1. history and any pending or scheduled pay- zone in support of the Armed Forces. See Indi-

ments. viduals Serving in Combat Zone, later, under

• When Do I Have To File. Access your tax records, including key



Filing data from your most recent tax return, your Adoption taxpayer identification number. If

economic impact payment amounts, and a child has been placed in your home for purpo-

transcripts. ses of legal adoption and you won’t be able to



Information • get a social security number for the child in time View digital copies of select notices from to file your return, you may be able to get an the IRS. adoption taxpayer identification number (ATIN). • Approve or reject authorization requests For more information, see Social Security Num- from tax professionals. ber (SSN) , later. What’s New • View your address on file or manage your Taxpayer identification number for aliens. If communication preferences. you or your dependent is a nonresident or resi- Due date of return. File Form 1040 or • Go to IRS.gov/SecureAccess to view the dent alien who doesn’t have and isn’t eligible to 1040-SR by April 15, 2026. required identity authentication process. get a social security number, file Form W-7, Ap-



Who must file. Generally, the amount of in- plication for IRS Individual Taxpayer Identifica- Change of address. If you change your ad- tion Number, with the IRS. For more informa- come you can receive before you must file a re- dress, you should notify the IRS. You can use tion, see Social Security Number (SSN) , later. turn has been increased. See Table 1-1 , Ta- Form 8822 to notify the IRS of the change. See ble 1-2 , and Table 1-3 for the specific amounts. Change of Address , later, under What Happens Individual taxpayer identification number After I File. Trump accounts and new Form 4547. Re- (ITIN) renewal. Some ITINs must be renewed. If you haven’t used your ITIN on a U.S. tax re- cent legislation allows parents, guardians, and Enter your social security number. You must turn at least once for tax years 2022, 2023, or other authorized individuals to elect to establish enter your social security number (SSN) in the 2024, it has expired and must be renewed if you a new type of individual retirement account, spaces provided on your tax return. If you file a called a Trump account, for the exclusive benefit need to file a U.S. federal tax return. You don’t joint return, enter the SSNs in the same order of certain children. If the child was born after as the names. need to renew your ITIN if you don’t need to file a federal tax return. You can find more informa- 2024 and before 2029, is a U.S. citizen, and Direct deposit of refund. Have your refund meets certain other requirements, the author- tion at IRS.gov/ITIN . deposited directly into your account at a bank or ized individual may also elect to receive a other financial institution. See Direct Deposit Frivolous tax submissions. The IRS has $1,000 pilot program contribution to the child’s under Refunds, later. If you choose direct de- published a list of positions that are identified as Trump account. Both elections can be made on posit of your refund, you may be able to split the frivolous. The penalty for filing a frivolous tax re- Form 4547, which can be filed at the same time refund among two or three accounts. turn is $5,000. Also, the $5,000 penalty will ap- as the authorized individual’s 2025 income tax ply to other specified frivolous submissions. For return. For more information on Trump ac- Pay online or by phone. If you owe additional more information, see Civil Penalties , later. counts, and to learn how to make these elec- tax, you may be able to pay online or by phone.

tions, see Form 4547 and its instructions. See How To Pay, later.



Reminders full amount due with your return, you may ask to make monthly installment payments. See Installment agreement. If you can’t pay the Introduction

In- This chapter discusses the following topics.



File online. E-filing is safe and secure and you stallment Agreement, later, under Amount You • Whether you have to file a return. Owe. You may be able to apply online for a pay-may be able to e-file for free. For more informa-ment agreement if you owe federal tax, interest, • How to file electronically. tion, see File Electronically , later. and penalties. • How to file for free. Access your online account (individual tax-Automatic 6-month extension. You can get • When, how, and where to file your return. payers only). Go to IRS.gov/Account to se-an automatic 6-month extension to file your tax curely access information about your federal tax • What happens if you pay too little or too return if, no later than the date your return is account. much tax. due, you request an extension. See Automatic • • View the amount you owe and a break-Extension , later. What records you should keep and how down by tax year. long you should keep them. Service in combat zone. You are allowed ex-• See payment plan details or apply for a tra time to take care of your tax matters if you • How you can change a return you have al-new payment plan. are a member of the Armed Forces who served ready filed.

6 Chapter 1 Filing Information Publication 17 (2025) Do I Have To Table 1-1. 2025 Filing Requirements for Most Taxpayers





File a Return? THEN file a return if AND at the end of 2025 you your gross income


You must file a federal income tax return if you IF your filing status is... were...* was at least...**

are a citizen or resident of the United States or Single under 65 $15,750 a resident of Puerto Rico and you meet the filing

requirements for any of the following categories 65 or older $17,750 that apply to you.

Married filing jointly*** under 65 (both spouses) $31,500

1. Individuals in general. (There are special rules for individuals whose spouse has 65 or older (one spouse) $33,100

died, executors, administrators, legal rep- 65 or older (both spouses) $34,700 resentatives, U.S. citizens and residents

living outside the United States, residents Married filing separately any age $5



2. Dependents. of Puerto Rico, and individuals with in- Head of household under 65 $23,625 come from U.S. territories.) 65 or older $25,625 Qualifying surviving spouse under 65 $31,500 3. Certain children under age 19 or full-time 65 or older students. $33,100

4. Self-employed persons.

* If you were born on January 1, 1961, you are considered to be age 65 at the end of 2025. (If your spouse

5. Aliens. died in 2025 or if you are preparing a return for someone who died in 2025, see Pub. 501.)



The filing requirements for each category are ** Gross income means all income you received 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 explained in this chapter. your main home (even if you can exclude part or all of it). Don’t include any social security benefits unless

The filing requirements apply even if you (a) you are married filing a separate return and you lived with your spouse at any time during 2025, or (b)

don’t owe tax. 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 Instructions for Form 1040 or

Even if you don’t have to file a return, it Pub. 915 to figure the taxable part of social security benefits you must include in gross income. Gross

TIP income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a may be to your advantage to do so.

See business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring Who Should File , later.

gross income, don’t reduce your income by any losses, including any loss on Schedule C, line 7, or

File only one federal income tax return Schedule F, line 9.

CAUTION ! for the year regardless of how many *** If you didn’t live with your spouse at the end of 2025 (or on the date your spouse died) and your gross income was at least $5, you must file a return regardless of your age. jobs you had, how many Forms W-2



return for the same year, even if you haven’t re- for Form 1040 or Pub. 915 to figure the social on the last day of your tax year, which is De- security benefits you must include in gross in- cember 31 for most taxpayers. See chapter 2 ceived your refund or haven’t heard from the come. for an explanation of each filing status. IRS since you filed. during the year. Don’t file more than one original If either (1) or (2) applies, see the Instructions family situation. Your filing status is determined you received, or how many states you lived in

Individuals—In General Part Two Common types of income are discussed in Age. If you are 65 or older at the end of the of this publication. year, you can generally have a higher amount of

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 on the day before your 65th birthday. For exam- Idaho, Louisiana, Nevada, New Mexico, Texas,

must file a return depends on three factors. ple, if your 65th birthday is on January 1, 2026, Washington, and Wisconsin. If you and your

1. Your gross income. spouse lived in a community property state, you you are considered 65 for 2025.

must usually follow state law to determine what



3. Your age. come. For details, see Form 8958 and Pub. Executors, Administrators, 555. and Legal Representatives 2. Your filing status. is community property and what is separate in- Surviving Spouses,

To find out whether you must file, see Ta-

ble 1-1 Nevada, Washington, and California do-, Table 1-2 , and Table 1-3 . Even if no ta- You must file a final return for a decedent (a per-



later. executor, administrator, or legal represen- income of the individual and their domestic tative. Gross income. This includes all income you 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 file to get money back. See ner in Nevada, Washington, or California must Who Should File , • Your spouse died in 2025 or you are the generally report half the combined community 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.



ted States or from the sale of your main home For more information on rules for filing a de- amount on line 7 of Schedule C (Form 1040), cedent’s final return, see Pub. 559. (even if you can exclude all or part of it). Include Profit or Loss From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From part of your social security benefits if: Farming. See includes income from sources outside the Uni- self-employed, your gross income includes the Self-employed individuals. If you are at the date of death.

1. You were married, filing a separate return, Self-Employed Persons, later, for U.S. Citizens and Resident Aliens

and you lived with your spouse at any time more information about your filing requirements. Living Abroad



2. Half of your social security benefits plus clude in your gross income any income you re- ! ployment income, your social security CAUTION benefits may be lower when you retire. during 2025; or If you don’t report all of your self-em- To determine whether you must file a return, in-



your other gross income and any tax-ex- ceived abroad, including any income you can exclude under the foreign earned income exclu- empt interest is more than $25,000 Filing status. Your filing status depends on sion. For information on special tax rules that ($32,000 if married filing jointly). whether you are single or married and on your

Publication 17 (2025) Chapter 1 Filing Information 7 may apply to you, see Pub. 54. It is available on- under age 19 at the end of 2025 or was a ing the same rules that apply to U.S. citizens. line and at most U.S. embassies and consu- full-time student under age 24 at the end of Use the forms discussed in this publication.





this publication. Nonresident alien. If you are a nonresident lates. See How To Get Tax Help in the back of 2025, and certain other conditions are met, a parent can elect to include the child’s income on alien, the rules and tax forms that apply to you the parent’s return. If this election is made, the are different from those that apply to U.S. citi-




Residents of Puerto Rico child doesn’t have to file a return. See Instruc- zens and resident aliens. See Pub. 519 to find tions for Form 8814, Parents’ Election To Report out if U.S. income tax laws apply to you and If you are a U.S. citizen and also a bona fide Child’s Interest and Dividends. which forms you should file. resident of Puerto Rico, you must generally file



a U.S. income tax return for any year in which Dual-status taxpayer. If you are a resident you meet the income requirements. This is in Self-Employed Persons alien for part of the tax year and a nonresident addition to any legal requirement you may have alien for the rest of the year, you are a dual-sta- to file an income tax return with Puerto Rico. You are self-employed if you: tus taxpayer. Different rules apply for each part If you are a bona fide resident of Puerto Rico • Carry on a trade or business as a sole pro- of the year. For information on dual-status tax- for the entire year, your U.S. gross income prietor, payers, see Pub. 519. doesn’t include income from sources within • Are an independent contractor, Puerto Rico. It does, however, include any in- • come you received for your services as an em- Are a member of a partnership, or Who Should File ployee of the United States or a U.S. agency. If • Are in business for yourself in any other Even if you don’t have to file, you should file a you receive income from Puerto Rican sources way. that isn’t subject to U.S. tax, you must reduce federal income tax return to get money back if Self-employment can include work in addi- your standard deduction. As a result, the any of the following conditions apply. tion to your regular full-time business activities, amount of income you must have before you are 1. You had federal income tax withheld or required to file a U.S. income tax return is lower such as certain part-time work you do at home made estimated tax payments. than the applicable amount in Table 1-1 or Ta- or in addition to your regular job. 2. You qualify for the earned income credit. ble 1-2 . For more information, see Pub. 570. You must file a return if your gross income is See Pub. 596 for more information. at least as much as the filing requirement



Individuals With Income From amount for your filing status and age (shown in 3. You qualify for the additional child tax Table 1-1 ). Also, you must file Form 1040 or U.S. Territories credit. See chapter 14 for more informa-1040-SR and Schedule SE (Form 1040), tion. If you had income from Guam, the Common-Self-Employment Tax, if: wealth of the Northern Mariana Islands, Ameri-4. You qualify for the premium tax credit. See 1. Your net earnings from self-employment can Samoa, or the U.S. Virgin Islands, special Pub. 974 for more information. (excluding church employee income) were rules may apply when determining whether you 5. You qualify for the American opportunity $400 or more, or must file a U.S. federal income tax return. In ad-credit. See Pub. 970 for more information. dition, you may have to file a return with the indi-2. You had church employee income of vidual island government. See Pub. 570 for $108.28 or more. (See Table 1-3 .) 6. You qualify for the refundable adoption more information. credit. See Form 8839 and its instructions Use Schedule SE (Form 1040) to figure your for more information. self-employment tax. Self-employment tax is Dependents comparable to the social security and Medicare See chapter 13 for more information.



If you are a dependent (one who meets the de- more information about this tax, see Pub. 334. tax withheld from an employee’s wages. For Form 1040 or 1040-SR

pendency tests in chapter 3), see Table 1-2 to



find out whether you must file a return. You must Employees of foreign governments or in- Use Form 1040 or 1040-SR to file your return. also file if your situation is described in Ta-ternational organizations. If you are a U.S. (But also see File Electronically , later.) ble 1-3 . citizen who works in the United States for an in-Responsibility of parent. Generally, a child is ternational organization, a foreign government, You can use Form 1040 or 1040-SR to re-responsible for filing their own tax return and for or a wholly owned instrumentality of a foreign port all types of income, deductions, and cred-paying any tax on the return. If a dependent government, and your employer isn’t required to its.



due to age or any other reason, then a parent, from your wages, you must include your earn- File Electronically child must file an income tax return but can’t file withhold social security and Medicare taxes guardian, or other legally responsible person ings from services performed in the United



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 return, the parent or guardian must sign the self-employment. Electronic Filing child’s name followed by the words “By (your must file it for the child. If the child can’t sign the States when figuring your net earnings from child’s parent has the right to the earnings and gible for Free File Fillable Forms, an electronic ence practitioners and members of a religious

may actually have received them. But if the child version of IRS paper forms. Table 1-4 lists the order who have not taken a vow of poverty. For

doesn’t pay the tax due on this income, the pa- free ways to electronically file your return. more information, see Pub. 517.

rent is liable for the tax. Free File and Free Fillable Forms provide eli- Aliens

gible taxpayers the ability to e-file their taxes for

Certain Children Under free. See IRS.gov/FreeFile for details and to see

Age 19 or Full-Time Your status as an alien (resident, nonresident, if you are eligible.



Students most of the manual steps needed to process The rules used to determine your alien sta- paper returns. As a result, the processing of tus are discussed in Pub. 519. you must file an income tax return. E-file. IRS e-file uses automation to replace or dual-status) determines whether and how

If a child’s only income is interest and dividends e-file returns is faster and more accurate than

(including capital gain distributions and Alaska Resident alien. If you are a resident alien for the processing of paper returns. However, as Permanent Fund dividends), the child was the entire year, you must file a tax return follow- with a paper return, you are responsible for

8 Chapter 1 Filing Information Publication 17 (2025) Table 1-2. 2025 Filing Requirements for Dependents Your electronic return signed with a Self-Se-





See lect PIN is considered a validly signed return chapter 3 to find out if someone can claim you as a dependent.


only when it includes your PIN; last name; date

If your parents (or someone else) can claim you as a dependent, use this table to see if you gross income (AGI) from your originally filed of birth; IP PIN, if applicable; and your adjusted

must file a return. (See Table 1-3 for other situations when you must file.) 2024 federal income tax return, if applicable. If

In this table, unearned income includes taxable interest, ordinary dividends, and capital gain you’re filing jointly, your electronic return must

distributions. It also includes unemployment compensation, taxable social security benefits, also include your spouse’s PIN; last name; date

pensions, annuities, and distributions of unearned income from a trust. Earned income includes of birth; IP PIN, if applicable; and AGI, if appli-

salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. (See cable, in order to be considered validly signed.

Scholarships and fellowships in chapter 8.) Gross income is the total of your earned and (You, and your spouse if filing jointly, may each

unearned income. use your own prior-year pin to verify your iden-

tity if you filed electronically last year. If you use

Single dependents—Were you either age 65 or older or blind? your prior-year PIN or enter your IP PIN, you are

No. You must file a return if any of the following apply. not required to enter your prior-year AGI. The

• Your unearned income was more than $1,350. electronically sign your 2024 return.) prior-year PIN is the five-digit PIN you used to • Your earned income was more than $15,750. If you need your AGI from your originally

• Your gross income was more than the larger of: filed 2024 federal income tax return, and you

• $1,350, or don’t have your 2024 income tax return, you can

• Your earned income (up to $15,300) plus $450. access your transcript through your online ac-

count at IRS.gov/Account. You can also go to

Yes. You must file a return if any of the following apply. IRS.gov/Transcript or call the IRS at

• Your unearned income was more than $3,350 ($5,350 if 65 or older and blind). 800-908-9946 to get a free transcript of your re-



• Your gross income was more than the larger of: turn (Form 1040-X) or a math error correction made by the IRS. AGI is the amount shown on • $3,350 ($5,350 if 65 or older and blind), or • Your earned income was more than $17,750 ($19,750 if 65 or older and blind). turn. Don’t use your AGI from an amended re-

your 2024 Form 1040 or 1040-SR, line 11.

• Your earned income (up to $15,300) plus $2,450 ($4,450 if 65 or older and For more information, go to IRS.gov/Efile.

blind).

Married dependents—Were you either age 65 or older or blind? method if you are a first-time filer under ! You can’t use the Self-Select PIN

No. You must file a return if any of the following apply. CAUTION age 16 at the end of 2025.

• Your unearned income was more than $1,350. Practitioner PIN. The Practitioner PIN method

• Your earned income was more than $15,750. allows you to authorize your tax practitioner to

• Your gross income was at least $5 and your spouse files a separate return and enter or generate your PIN. Your electronic re-

itemizes deductions. turn is considered a validly signed return only



• Your gross income was more than the larger of: when it includes your PIN; last name; date of • $1,350, or birth; and IP PIN, if applicable. If you’re filing jointly, your electronic return must also include

• Your earned income (up to $15,300) plus $450. your spouse’s PIN; last name; date of birth; and



Yes. You must file a return if any of the following apply. IP PIN, if applicable, in order to be considered a • Your unearned income was more than $2,950 ($4,550 if 65 or older and blind). validly signed return. The practitioner can pro- vide you with details.



• Your gross income was at least $5 and your spouse files a separate return and Form 8453. You must send in a paper Form 8453 if you have to attach certain forms or other • Your earned income was more than $17,350 ($18,950 if 65 or older and blind).

itemizes deductions.

• Your gross income was more than the larger of: Form 8453. documents that can’t be electronically filed. See



• Your earned income (up to $15,300) plus $2,050 ($3,650 if 65 or older and Identity Protection PIN (IP PIN). If the IRS gave you an IP PIN, enter it in the spaces provi- • $2,950 ($4,550 if 65 or older and blind), or

blind). ded on your tax form. If the IRS hasn’t given you

making sure your return contains accurate infor- If we issued you an identity protection per- For more information, see the Instructions for this type of number, leave these spaces blank.

mation and is filed on time. If your return is filed sonal identification number (IP PIN) (as descri- Form 1040. with IRS e-file, you will receive an acknowledg-bed in more detail next), all six digits of your IP ment that your return was received and accep- PIN must appear in the IP PIN spaces provided All taxpayers are now eligible for an IP ted. If you owe tax, you can e-file and pay elec- next to the space for your occupation for your TIP PIN. For more information, see Pub. tronically. The IRS has processed more than electronic signature to be complete. Failure to 5477. To apply for an IP PIN, go to

one billion e-filed returns safely and securely. include an issued IP PIN on the electronic re- IRS.gov/IPPIN and use the Get an IP PIN tool. Using e-file doesn’t affect your chances of an turn will result in an invalid signature and a re-IRS examination of your return. jected return. If you are filing a joint return and Power of attorney. If an agent is signing your Requirements for an electronic return. The both taxpayers were issued IP PINs, enter both return for you, a power of attorney (POA) must

requirements for signing an electronic return will using that form’s instructions. See IP PINs in the spaces provided. be filed. Attach the POA to Form 8453 and file it

be different depending on whether you use tax Self-Select PIN. The Self-Select PIN method later, for more information on POAs. Signatures, software or a tax practitioner. To file your return allows you to create your own PIN. If you are electronically, you must sign the return electron- married filing jointly, you and your spouse will Refunds. Starting in October 2025, the IRS will ically using a personal identification number each need to create a PIN and enter these PINs generally stop issuing paper checks for federal (PIN) and provide the information described be- as your electronic signatures. disbursements, including tax refunds, unless an low. If you are filing online using software, you A PIN is any combination of five digits you exception applies. For more information, go

must use a Self-Select PIN. If you are filing choose except five zeros. If you use a PIN, there IRS.gov/ModernPayments. electronically using a tax practitioner, you can is nothing to sign and nothing to mail—not even You may not get all of your refund if you owe use a Self-Select PIN or a Practitioner PIN. your Forms W-2. certain past-due amounts, such as federal tax,

Publication 17 (2025) Chapter 1 Filing Information 9 Table 1-3. Other Situations When You Must File a 2025 Return





You must file a return if any of the following apply for 2025.


1. You owe any special taxes, 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. Household employment taxes.

d. Social security and 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.

e. Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance

and additional taxes on health savings accounts.

f. Recapture taxes.

2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA 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 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).

7. You purchased a new or used clean vehicle from a registered dealer and reduced the amount you paid at the time of sale by

transferring the credit to the dealer. See Form 8936 and Schedule A (Form 8936).



state income tax, state unemployment compen- Table 1-4. Free Ways To e-file sation debts, child support, spousal support, or

certain other federal nontax debts, such as stu- Use Free File for free tax software and free e-file.

dent loans. See Offset against debts under Re-

funds, later. • IRS partners offer name-brand products for free.

Refund inquiries. Information about your re- • Many taxpayers are eligible for Free File software. turn will generally be available within 24 hours • Everyone is eligible for Free File Fillable Forms, an electronic version of IRS paper forms.

after the IRS receives your e-filed return. See

Refund Information • Free File software and Free File Fillable Forms are available only at IRS.gov/FreeFile. , later.

Amount you owe. To avoid late-payment pen- Use VITA/TCE for free tax help from volunteers and free e-file. alties and interest, pay your taxes in full by April • Volunteers prepare your return and e-file it for free.

15, 2026 (for most people). See How To Pay,

later, for information on how to pay the amount • Some sites also offer do-it-yourself software.

you owe. • You are eligible based either on your income or age.

Using Your Personal Computer • Sites are located nationwide. Find one near you by visiting IRS.gov/VITA.



IRS-approved tax preparation software is Free File. Go to IRS.gov/FreeFile. See if sional to enter your PIN on your return.



available online and in retail stores. For informa- you qualify to use brand-name software to prepare and e-file your federal tax return Note: Tax professionals may charge a fee tion, visit IRS.gov/efile . for free. for IRS e-file. Fees can vary depending on the professional and the specific services rendered. • VITA. Go to IRS.gov/VITA , download the Free Help With Your Return free IRS2Go app, or call 800-906-9887 to The Volunteer Income Tax Assistance (VITA) find the nearest VITA location for free tax When Do I program offers free tax help to people who gen-return preparation. erally have $69,000 or less in adjusted gross in-Have To File? • TCE. Go to IRS.gov/TCE , download the come, persons with disabilities, and limi-free IRS2Go app, or call 888-227-7669 to April 15, 2026, is the due date for filing your ted-English-speaking taxpayers who need help find the nearest TCE location for free tax preparing their own tax returns. The Tax Coun-2025 income tax return if you use the calendar return preparation. seling for the Elderly (TCE) program offers free year. For a quick view of due dates for filing a return with or without an extension of time to file tax help for all taxpayers, particularly those who ration software are all you need. Best of all, you You can go to IRS.gov to see your options turns for their clients. You may personally enter for preparing and filing your return, which in- your PIN or complete Form 8879, IRS e-file Sig- can e-file from the comfort of your home 24 clude the following. nature Authorization, to authorize the tax profes- hours a day, 7 days a week. • convenient way using your personal computer. to seniors. Many tax professionals electronically file tax re-A computer with Internet access and tax prepa-You can file your tax return in a fast, easy, and pensions and retirement-related issues unique Using a Tax Professional

are 60 years of age and older. TCE volunteers (discussed later), see Table 1-5. specialize in answering questions about

10 Chapter 1 Filing Information Publication 17 (2025)





If you use a fiscal year (a year ending on the Table 1-5. When To File Your 2025 Return


52-53-week year), your income tax return is due last day of any month except December, or a For U.S. citizens and residents who file returns on a calendar year

by the 15th day of the 4th month after the close basis. of your fiscal year.

For Certain Taxpayers

When the due date for doing any act for tax Outside

purposes—filing a return, paying taxes, For Most Taxpayers the United States



etc.—falls on a Saturday, Sunday, or legal holi- No extension requested April 15, 2026 June 15, 2026 day, the due date is delayed until the next busi-Automatic extension ness day. October 15, 2026 October 15, 2026



Filing paper returns on time. Your paper re- time in your time zone controls whether your How to get the automatic extension. You turn is filed on time if it is mailed in an envelope electronically filed return is timely. can get the automatic extension by: that is properly addressed, has enough post-Filing late. If you don’t file your return by the age, and is postmarked by the due date. If you 1. Using IRS e-file (electronic filing), or due date, you may have to pay a failure-to-file send your return by registered mail, the date of 2. Filing a paper form. the registration is the postmark date. The regis-penalty and interest. For more information, see Penalties tration is evidence that the return was delivered. , later. Also see Interest under Amount E-file options. There are two ways you can You Owe, later. If you send a return by certified mail and have use e-file to get an extension of time to file. your receipt postmarked by a postal employee, If you were due a refund but you didn’t file a Complete Form 4868 to use as a worksheet. If the date on the receipt is the postmark date. return, you must generally file within 3 years you think you may owe tax when you file your The postmarked certified mail receipt is evi- from the date the return was due (including ex- return, use Part II of the form to estimate your dence that the return was delivered. tensions) to get that refund. balance due. If you e-file Form 4868 to the IRS,



the “timely mailing treated as timely filing/ package with your personal computer or a tax professional to file Form 4868 electronically. paying” rule for tax returns and payments. • April 15, 2026, if you use a calendar year; Free File and Free File Fillable Forms, both These private delivery services include only the or available at IRS.gov, allow you to prepare and following. • The 15th day of the 4th month after the end e-file Form 4868 for free. You will need to pro- • DHL Express 9:00, DHL Express 10:30, of your fiscal year, if you use a fiscal year. vide certain information from your 2024 tax re- DHL Express 12:00, DHL Express World- mail your return, you can use certain private de- alien and earn wages subject to U.S. income E-file using your personal computer or a tax withholding, your 2025 U.S. income tax re- tax professional. You can use a tax software livery services designated by the IRS to meet turn (Form 1040-NR) is due by: Private delivery services. If you choose to Nonresident alien. If you are a nonresident don’t send a paper Form 4868.

wide, DHL Express Envelope, DHL Import If you don’t earn wages subject to U.S. in- turn. If you wish to make a payment by direct

Express 10:30, DHL Import Express 12:00, come tax withholding, your return is due by: transfer from your bank account, see Pay online

and DHL Import Express Worldwide. June 15, 2026, if you use a calendar year; E-file and pay by credit or debit card or • under How To Pay, later, in this chapter.

• or

Day Air, UPS Next Day Air Saver, UPS 2nd The 15th day of the 6th month after the end You can get an extension by paying part or all of of your fiscal year, if you use a fiscal year. UPS Next Day Air Early A.M., UPS Next by direct transfer from your bank account. •

Day Air, UPS 2nd Day Air A.M., UPS your estimate of tax due by using a credit or



• Pay on- FedEx First Overnight, FedEx Priority income tax return for a taxpayer who died dur- line under How To Pay, later, in this chapter. Overnight, FedEx Standard Overnight, Fe- ing the year (a decedent), the return is due by dEx 2 Day, FedEx International Next Flight the 15th day of the 4th month after the end of Filing a paper Form 4868. You can get an ex- Out, FedEx International Priority, FedEx In- the decedent’s normal tax year. See Pub. 559. wide Express. account. You can do this by phone or over the Filing for a decedent. If you must file a final Internet. You don’t file Form 4868. See Worldwide Express Plus, and UPS World- See Pub. 519 for more filing information. debit card or by direct transfer from your bank

tension of time to file by filing a paper Form

ternational First, and FedEx International 4868. If you are a fiscal year taxpayer, you must

Economy. file a paper Form 4868. Mail it to the address Extensions of Time To File

To check for any updates to the list of desig- shown in the form instructions. For more infor-



PDS. For the IRS mailing addresses to use if file your return. There are three types of situa- When to file. You must request the automatic you’re using a private delivery service, go to tions where you may qualify for an extension. nated private delivery services, go to IRS.gov/ mation, see Form 4868. You may be able to get an extension of time to



to get written proof of the mailing date. The private delivery service can tell you how • Automatic extensions. extension period ends. IRS.gov/PDSStreetAddresses. can file your return any time before the 6-month extension by the due date for your return. You

• You are outside the United States.



ments required to be sent to a P.O. box. CAUTION ! liver to P.O. boxes. You can’t use a pri- to file on Schedule 3 (Form 1040), line 10. vate delivery service to make tax pay-Automatic Extension If you can’t file your 2025 return by the due date, Only the U.S. Postal Service can de- • When you file your return. Enter any pay-You are serving in a combat zone. ment you made related to the extension of time

Individuals Outside the



postmarks the transmission by the due date. An Example. If your return is due on April 15, sion, without filing Form 4868 (until June 15, 2026, if you use the calendar year), to file your 2026, you will have until October 15, 2026, to authorized electronic return transmitter is a par- 2025 return and pay any federal income tax due file. ticipant in the IRS e-file program that transmits if: electronic tax return information directly to the If you don’t pay the tax due by the regu- 1. You are a U.S. citizen or resident; and IRS e-file, your return is considered filed on time extension of time to file. You are allowed an automatic 2-month exten-if the authorized electronic return transmitter Filing electronic returns on time. If you use you may be able to get an automatic 6-month United States



IRS. lar due date (April 15 for most taxpay-! The electronic postmark is a record of when CAUTION ers), you will owe interest. You may 2. On the due date of your return: the authorized electronic return transmitter re-also be charged penalties, discussed later. a. You are living outside the United ceived the transmission of your electronically States and Puerto Rico, and your filed return on its host system. The date and main place of business or post of duty

Publication 17 (2025) Chapter 1 Filing Information 11





is outside the United States and Pu- Pub. 3 also has information about other tax ben- your employer. When you request IRS help, be erto Rico; or efits available to military personnel serving in a prepared to provide the following information.


b. You are in military or naval service on combat zone. • Your name, address (including ZIP code),

duty outside the United States and Extension period. The deadline for filing your and phone number.



ular due date (April 15 for most taxpayers), in-However, if you pay the tax due after the reg-Puerto Rico. return, paying any tax due, filing a claim for re- • Your SSN. fund, and taking other actions with the IRS is • Your dates of employment. extended in two steps. First, your deadline is extended for 180 days after the later of: • Your employer’s name, address (including terest will be charged from that date until the ZIP code), and phone number. date the tax is paid. 1. The last day you are in a combat zone or the last day the area qualifies as a combat If you served in a combat zone or qualified Form 1099. If you received certain types of in-zone, or hazardous duty area, you may be eligible for a come, you may receive a Form 1099. For exam-



longer extension of time to file. See Individuals ple, if you received taxable interest of $10 or 2. The last day of any continuous qualified Serving in Combat Zone , later, for special rules more, the payer is required to provide or send hospitalization (defined later) for injury that apply to you. Form 1099 to you no later than February 2, from service in the combat zone. 2026 (or by February 17, 2026, if furnished by a Married taxpayers. If you file a joint return, Second, in addition to the 180 days, your broker). If it is mailed, you should allow ade- only one spouse has to qualify for this automatic deadline is also extended by the number of quate time to receive it before contacting the extension. If you and your spouse file separate days you had left to take action with the IRS payer. If you still don’t get the form by February returns, the automatic extension applies only to when you entered the combat zone. For exam- 17 (or by March 2, 2026, if furnished by a the spouse who qualifies. ple, you have 3 1 / 2 months (January 1–April 15) broker), call the IRS for help.



matic extension, you must attach a statement to when you entered the combat zone (or the en-1 your return explaining what situation qualified How to get the extension. To use this auto- to file your tax return. Any days left in this period



you for the extension. (See the situations listed ginning of the year) are added to the 180 days. Income and Expenses? under (2), earlier.) See How Much Extra Time Do These Exten-sions Give Me? in Pub. 3 for more information. tire 3 /2 months if you entered it before the be- When Do I Report My Extensions beyond 2 months. If you can’t file The rules on the extension for filing your re- You must figure your taxable income on the ba-your return within the automatic 2-month exten- turn also apply when you are deployed outside sis of a tax year. A “tax year” is an annual ac-sion period, you may be able to get an addi- the United States (away from your permanent counting period used for keeping records and tional 4-month extension, for a total of 6 duty station) while participating in a designated reporting income and expenses. You must ac-months. File Form 4868 and check the box on contingency operation. count for your income and expenses in a way



No further extension. An extension of more Qualified hospitalization. The hospitalization This section explains which accounting periods must be the result of an injury received while than 6 months will generally not be granted. and methods you can use. serving in a combat zone or a contingency op- However, if you are outside the United States line 8. way you do this is called an accounting method. that clearly shows your taxable income. The



longer extension. For more information, see Fil- • Any hospitalization outside the United Most individual tax returns cover a calendar ing and Payment Due Dates in Pub. 54. States, and year—the 12 months from January 1 through and meet certain tests, you may be granted a Accounting Periods eration. Qualified hospitalization means:

• Up to 5 years of hospitalization in the Uni- December 31. If you don’t use a calendar year,

Individuals Serving in ted States. your accounting period is a fiscal year. A regular



The deadline for filing your tax return, paying last day of any month except December. A hospitalizations. 52-53-week fiscal year varies from 52 to 53 any tax you may owe, and filing a claim for re- Combat Zone See Pub. 3 for more information on qualified fiscal year is a 12-month period that ends on the



fund is automatically extended if you serve in a weeks and always ends on the same day of the How Do I Prepare week. combat zone. This applies to members of the My Return? Armed Forces, as well as merchant marines You choose your accounting period (tax year) when you file your first income tax return. serving aboard vessels under the operational It can’t be longer than 12 months. control of the Department of Defense, Red This section explains how to get ready to com-



Cross personnel, accredited correspondents, plete your tax return and when to report your in- More information. For more information on and civilians under the direction of the Armed come and expenses. It also explains how to accounting periods, including how to change Forces in support of the Armed Forces. complete certain sections of the form. your accounting period, see Pub. 538. Combat zone. A combat zone is any area the Electronic returns. For information you may



executive order as an area in which the U.S. File Electronically, earlier. Your accounting method is the way you account Armed Forces are engaging or have engaged in Substitute tax forms. You can’t use your own President of the United States designates by find useful in preparing an electronic return, see Accounting Methods combat. An area usually becomes a combat version of a tax form unless it meets the require- for your income and expenses. Most taxpayers



the term “combat zone” includes the following Form W-2. If you were an employee, you change your accounting method after that, you should receive Form W-2 from your employer. must generally get IRS approval. Use Form areas. You will need the information from this form to 3115 to request an accounting method change. prepare your return. See Form W-2 under Credit 1. The Arabian peninsula area, effective Jan- for Withholding and Estimated Tax for 2025 in Cash method. If you use this method, report uary 17, 1991. dates the President designates by executive or- method. You choose a method when you file your first income tax return. If you want to der. For purposes of the automatic extension, zone and ceases to be a combat zone on the ments explained in Pub. 1167. use either the cash method or an accrual





chapter 4. all items of income in the year in which you ac-


2. The Kosovo area, effective March 24, Your employer is required to provide or send tually or constructively receive them. Generally,

1999. Form W-2 to you no later than February 2, 2026. you deduct all expenses in the year you actually

3. The Afghanistan area, effective Septem- If it is mailed, you should allow adequate time to pay them. This is the method most individual

ber 19, 2001. receive it before contacting your employer. If taxpayers use.

See Pub. 3 for more detailed information on Constructive receipt. Generally, you con- you still don’t get the form by early February, the

the locations comprising each combat zone. structively receive income when it is credited to IRS can help you by requesting the form from

your account or set apart in any way that makes

12 Chapter 1 Filing Information Publication 17 (2025) it available to you. You don’t need to have physi- A limited deferral until the next tax year may hospital records. The document must show that cal possession of it. For example, interest credi- be allowed for certain advance payments. See the child was born alive.





could have withdrawn it in 2025 (even if the Additional information. For more information cial Security Card, with your local SSA office to on accounting methods, including how to get an SSN for yourself or your dependent. It amount isn’t entered in your records or with- change your accounting method, see Pub. 538. 2025, is taxable income to you in 2025 if you No SSN. File Form SS-5, Application for a So- ted to your bank account on December 31, Pub. 538 for specific information.


drawn until 2026). usually takes about 2 weeks to get an SSN. If you or your dependent isn’t eligible for an SSN,

Garnished wages. If your employer uses see Individual taxpayer identification number Social Security Number

your wages to pay your debts, or if your wages (ITIN), later. (SSN)

are attached or garnished, the full amount is If you are a U.S. citizen or resident alien, you

constructively received by you. You must in- must show proof of age, identity, and citizenship

clude these wages in income for the year you You must enter your SSN on your return. If you or alien status with your Form SS-5. If you are would have received them. are married, enter the SSNs for both you and 12 or older and have never been assigned an

Debts paid for you. If another person can- your spouse, whether you file jointly or sepa- SSN, you must appear in person with this proof

cels or pays your debts (but not as a gift or rately. at an SSA office. loan), you have constructively received the If you are filing a joint return, include the Form SS-5 is available at any SSA office, on



constructively received the income. It is the the time your return is due, you may want to ask your 2025 return (including extensions), you same as if you had actually received the income for an extension of time to file, as explained ear- can’t claim certain tax benefits on your original and paid it to the third party. lier under When Do I Have To File . or an amended 2025 return. If you don’t provide a required SSN or if you Payment to an agent. Income an agent re- Once you are issued an SSN, use it to file provide an incorrect SSN, your tax may be in- ceives for you is income you constructively re- your tax return. Use your SSN to file your tax re- creased and any refund may be reduced. ceived in the year the agent receives it. If you in- turn even if your SSN does not authorize em- dicate in a contract that your income is to be ployment or if you have been issued an SSN Adoption taxpayer identification number paid to another person, you must include the that authorizes employment and you lose your (ATIN). If you are in the process of adopting a amount in your gross income when the other child who is a U.S. citizen or resident and can’t employment authorization. An ITIN will not be person receives it. issued to you once you have been issued an get an SSN for the child until the adoption is fi- nal, you can apply for an ATIN to use instead of SSN. If you received your SSN after previously Check received or available. A valid check in chapter 8 for more information. about which documents you can use as proof of age, identity, or citizenship, contact your SSA If you, or your spouse if filing jointly, Payment to third party. If a third party is office. don’t have an SSN (or ITIN) issued ei- paid income from property you own, you have ! CAUTION If your dependent doesn’t have an SSN by ther on or on or before the due date of gross income for the year. See same order in submitting other forms and docu- calling 800-772-1213. If you have any questions Canceled Debts ments to the IRS. amount and must generally include it in your SSNs in the same order as the names. Use this the Internet at SSA.gov/forms/ss-5.pdf, or by

that was made available to you before the end using an ITIN, stop using your ITIN. Use your an SSN. of the tax year is constructively received by you SSN instead. File Form W-7A, Application for Taxpayer in that year. A check that was “made available Check that both the name and SSN on your Identification Number for Pending U.S. Adop-to you” includes a check you have already re- tions, with the IRS to get an ATIN if all of the fol- Form 1040 or 1040-SR, W-2, and 1099 agree

ceived, but not cashed or deposited. It also in- with your social security card. If they don’t, cer- lowing are true.



cludes, for example, your last paycheck of the tain deductions and credits on your Form 1040 • You have a child living with you who was or 1040-SR may be reduced or disallowed and year that your employer made available for you placed in your home for legal adoption. to pick up at the office before the end of the you may not receive credit for your social secur-• You can’t get the child’s existing SSN even year. It is constructively received by you in that ity earnings. If your Form W-2 shows an incor-though you have made a reasonable at-year whether or not you pick it up before the end rect SSN or name, notify your employer or the tempt to get it from the birth parents, the of the year or wait to receive it by mail after the form-issuing agent as soon as possible to make placement agency, and other persons. end of the year. sure your earnings are credited to your social security record. If the name or SSN on your so-• You can’t get an SSN for the child from the No constructive receipt. There may be cial security card is incorrect, call the Social Se-SSA because, for example, the adoption facts to show that you didn’t constructively re-curity Administration (SSA) at 800-772-1213. isn’t final. ceive income. Name change. If you changed your name be-• You are eligible to claim the child as a de-cause of marriage, divorce, etc., be sure to re-Example. Lennon, a teacher, agreed to the pendent on your tax return.



school board’s condition that, in Lennon’s ab- port the change to your local SSA office before After the adoption is final, you must apply for an sence, Lennon would receive only the differ-filing your return. This prevents delays in pro-SSN for the child. You can’t continue using the ence between Lennon’s regular salary and the cessing your return and issuing refunds. It also ATIN. salary of a substitute teacher hired by the safeguards your future social security benefits. See Form W-7A for more information. school board. Therefore, Lennon didn’t con-Dependent’s SSN. You must provide the SSN structively receive the amount by which Len-Nonresident alien spouse. If your spouse is a of each dependent you claim, regardless of the non’s salary was reduced to pay the substitute nonresident alien, your spouse must have either dependent’s age. This requirement applies to all teacher. an SSN or an ITIN if: dependents (not just your children) claimed on • Accrual method. If you use an accrual your tax return. You file a joint return, or



method, you generally report income when you Your child must have an SSN valid for • Your spouse is filing a separate return. earn it, rather than when you receive it. You employment issued before the due ! If your spouse isn’t eligible for an SSN, see the generally deduct your expenses when you incur CAUTION date of your 2025 return (including ex-following discussion on ITINs . them, rather than when you pay them. tensions) to be considered a qualifying child for Individual taxpayer identification number Income paid in advance. An advance pay-certain tax benefits on your original or amended (ITIN). The IRS will issue you an ITIN if you are ment of income is generally included in gross 2025 return. See chapter 14 . a nonresident or resident alien and you don’t income in the year you receive it. Your method have and aren’t eligible to get an SSN. This also of accounting doesn’t matter as long as the in-Exception. If your child was born and died applies to an alien spouse or dependent. To ap-come is available to you. An advance payment in 2025 and didn’t have an SSN, enter “DIED” ply for an ITIN, file Form W-7 with the IRS. It may include rent or interest you receive in ad-on row (3) of the Dependents section of Form vance and pay for services you will perform 1040 or 1040-SR and include a copy of the later. child’s birth certificate, death certificate, or

Publication 17 (2025) Chapter 1 Filing Information 13 usually takes about 7 weeks to get an ITIN. En- Negative amounts. If you file a paper return want to expand the designee’s authorization, ter the ITIN on your tax return wherever an SSN and you need to enter a negative amount, put see Pub. 947. is requested. the amount in parentheses rather than using a The authorization will automatically end no





Make sure your ITIN hasn’t expired. See In- minus sign. To combine positive and negative later than the due date (without any extensions)


dividual taxpayer identification number (ITIN) amounts, add all the positive amounts together for filing your 2026 tax return. This is April 15,

renewal, earlier, for more information on expira- and then subtract the negative amounts. 2027, for most people.



following years. CAUTION ! the calendar year the ITIN is issued; TIP turn using IRS e-file. There’s nothing to If you file a joint return, both spouses attach or mail, not even your Forms are generally liable for the tax, and the however, you can e-file returns in the ! W-2. See File Electronically , earlier. CAUTION entire tax liability may be assessed against either spouse. See chapter 2 . Form W-2. Form W-2 is a statement from your Your return isn’t considered a valid return un- ITIN for tax use only. An ITIN is for federal employer of wages and other compensation less you sign it in accordance with the require- tax use only. It doesn’t entitle you to social se- paid to you and taxes withheld from your pay. ments in the instructions for your return. curity benefits or change your employment or You should have a Form W-2 from each em- ployer. If you file a paper return, be sure to at- You must handwrite your signature on your immigration status under U.S. law. tach a copy of Form W-2 in the place indicated return if you file it on paper. Digital, electronic, or Penalty for not providing social security on your return. For more information, see Form typed-font signatures are not valid signatures number. If you don’t include your SSN or the W-2 in chapter 4. for Forms 1040 or 1040-SR filed on paper. SSN of your spouse or dependent as required, If you electronically file your return, you can you may have to pay a penalty. See the discus- use an electronic signature to sign your return in sion on Penalties , later, for more information. Form 1099-R. If you received a Form 1099-R accordance with the requirements contained in showing federal income tax withheld, and you the instructions for your return. SSN on correspondence. If you write to the file a paper return, attach a copy of that form in IRS about your tax account, be sure to include Failure to sign your return in accordance the place indicated on your return. completed tax return to your Form W-7. See the TIP Depending on the form you file and the items re-self, your spouse, or a dependent in or- Signatures ported on your return, you may have to com-der to file your tax return, attach your plete additional schedules and forms and attach You must sign and date your return. If you file a them to your paper return. Form W-7 instructions for how and where to file. joint return, both you and your spouse must sign the return, even if only one of you had income. You may be able to file a paperless re-You can’t e-file a return using an ITIN in more information at IRS.gov/ITIN. tion. Attachments If you are applying for an ITIN for your-tion and renewal of ITINs. You can also find See your form instructions for more informa-

your SSN (and the name and SSN of your with these requirements may prevent you from

spouse, if you filed a joint return) in your corre- Form 1040 or 1040-SR. If you file a paper re- obtaining a refund. spondence. Because your SSN is used to iden- turn, attach any forms and schedules behind Enter your occupation. If you file a joint re-tify your account, this helps the IRS respond to Form 1040 or 1040-SR in order of the “Attach- turn, enter both your occupation and your spou-your correspondence promptly. ment Sequence No.” shown in the upper right se’s occupation.

all other statements or attachments in the same When someone can sign for you. You can corner of the form or schedule. Then, arrange

Presidential Election appoint an agent to sign your return if you are: order as the forms and schedules they relate to

Campaign Fund and attach them last. Don’t attach items unless 1. Unable to sign the return because of dis-required to do so. ease or injury,



This fund helps pay for Presidential election 2. Absent from the United States for a contin- campaigns. The fund also helps pay for pedia- Third Party Designee uous period of at least 60 days before the tric medical research. If you want $3 to go to due date for filing your return, or this fund, check the box. If you are filing a joint If you want to allow your preparer, a friend, a return, your spouse can also have $3 go to the 3. Given permission to do so by the IRS of- family member, or any other person you choose fund. If you check the box, your tax or refund fice in your area. to discuss your 2025 tax return with the IRS, won’t change. check the “Yes” box in the “Third Party Desig- Power of attorney. A return signed by an nee” area of your return. Also, enter the design- agent in any of these cases must have a power Computations ee’s name, phone number, and any five digits of attorney (POA) attached that authorizes the the designee chooses as their personal identifi- agent to sign for you. You can use a POA that cation number (PIN). states that the agent is granted authority to sign The following information may be useful in mak- If you check the “Yes” box, you, and your ing the return easier to complete. the return, or you can use Form 2848. Part I of spouse if filing a joint return, are authorizing the Form 2848 must state that the agent is granted Rounding off dollars. You can round off cents IRS to call the designee to answer any ques- authority to sign the return. to whole dollars on your return and schedules. If tions that arise during the processing of your re- you do round to whole dollars, you must round Court-appointed conservator, guardian, or turn. You are also authorizing the designee to: all amounts. To round, drop amounts under 50 other fiduciary. If you are a court-appointed • Give information that is missing from your conservator, guardian, or other fiduciary for a cents and increase amounts from 50 to 99 return to the IRS; cents to the next dollar. For example, $1.39 be- mentally or physically incompetent individual • comes $1 and $2.50 becomes $3. Call the IRS for information about the pro- who has to file a tax return, sign your name for cessing of your return or the status of your the individual. File Form 56. If you have to add two or more amounts to refund or payments; figure the amount to enter on a line, include Unable to sign. If the taxpayer is mentally cents when adding the amounts and round off • Receive copies of notices or transcripts re- competent but physically unable to sign the re- only the total. lated to your return, upon request; and turn or POA, a valid “signature” is defined under If you are entering amounts that include state law. It can be anything that clearly indi- • Respond to certain IRS notices about math cents, make sure to include the decimal point. cates the taxpayer’s intent to sign. For example, errors, offsets (see Refunds , later), and re- There is no cents column on Form 1040 or the taxpayer’s “X” with the signatures of two wit- turn preparation. 1040-SR. nesses might be considered a valid signature You aren’t authorizing the designee to re- under a state’s law. Equal amounts. If you are asked to enter the ceive any refund check, bind you to anything smaller or larger of two equal amounts, enter (including any additional tax liability), or that amount. otherwise represent you before the IRS. If you

14 Chapter 1 Filing Information Publication 17 (2025) Spouse unable to sign. If your spouse is un- Starting in October 2025, the IRS will generally Note: If the injured spouse’s residence was





able to sign for any reason, see Signing a joint stop issuing paper checks for federal disburse- in a community property state at any time during


return in chapter 2. ments, including tax refunds, unless an excep- the tax year, special rules may apply. See the



Child’s return. If a child has to file a tax return tion applies. For more information, go to Instructions for Form 8379. IRS.gov/ModernPayments . but can’t sign the return, the child’s parent, If you haven’t filed your joint return and you Don’t request a deposit of any part of your guardian, or another legally responsible person know that your joint refund will be offset, file refund to an account that isn’t in your name. must sign the child’s name, followed by the Form 8379 with your return. You should receive Don’t allow your tax preparer to deposit any part words “By (your signature), parent for minor your refund within 14 weeks from the date the of your refund into the preparer’s account. The child.” paper return is filed or within 11 weeks from the number of direct deposits to a single account or date the return is filed electronically. prepaid debit card is limited to three refunds a Paid Preparer If you filed your joint return and your joint re-year. Learn more at IRS.gov/DepositLimit . fund was offset, file Form 8379 by itself. When Generally, anyone you pay to prepare, assist in IRA. You can have your refund (or part of it) di- filed after offset, it can take up to 8 weeks to re-

preparing, or review your tax return must sign it rectly deposited to a traditional IRA or Roth IRA, ceive your refund. Don’t attach the previously

and fill in the other blanks, including their Pre- but not a SIMPLE IRA. You must establish the filed tax return, but do include copies of all

parer Tax Identification Number (PTIN), in the IRA at a bank or financial institution before you Forms W-2 and W-2G for both spouses and any



ually or use a rubber stamp or mechanical de- overpayment is less than $1, you won’t get a re- An injured spouse claim is different from an innocent spouse relief request. fund unless you ask for it in writing. ! vice. The preparer is personally responsible for CAUTION An injured spouse uses Form 8379 to affixing their signature to the return. Refund more or less than expected. If you request the division of the tax overpayment at- If the preparer is self-employed (that is, not receive a refund you aren’t entitled to, or for an tributed to each spouse. An innocent spouse employed by any person or business to prepare overpayment that should have been credited to uses Form 8857, Request for Innocent Spouse the return), the preparer should check the estimated tax, hold the refund in your account. Relief, to request relief from joint liability for tax, self-employed box in the “Paid Preparer Use Check your online account at IRS.gov/Account interest, and penalties on a joint return for items Only” space on the return. or contact the IRS. of the other spouse (or former spouse) that were incorrectly reported on the joint return. For The preparer must give you a copy of your If you receive more than the refund you return in addition to the copy filed with the IRS. information on innocent spouses, see Relief claimed, hold the refund in your account until from joint responsibility If you prepare your own return, leave this you receive a notice explaining the difference. under Filing a Joint Re- turn in chapter 2. returns they prepare. They sign these e-filed re- you may be able to split the refund and have it complete when filed. turns using their tax preparation software. How-deposited into more than one account. Com-A separate Form 8379 must be filed for each ever, you can choose to have your return com-plete Form 8888 and attach it to your return. tax year to be considered. pleted on paper if you prefer. In that case, the Overpayment less than one dollar. If your paid preparer can sign the paper return man-paid preparer’s area of your return. request direct deposit. Forms 1099 that show income tax withheld. The Many preparers are required to e-file the tax processing of Form 8379 may be delayed if Split refunds. If you choose direct deposit, these forms aren’t attached, or if the form is in-

area blank. If another person prepares your re- If your refund is for less than you claimed, it turn and doesn’t charge you, that person should be accompanied by a notice explaining

shouldn’t sign your return. the difference. Amount You Owe

parer must sign your return, contact any IRS of- any questions about the amount of your refund, When you complete your return, you will deter-fice. you should wait 2 weeks. If you still haven’t re-If you have questions about whether a pre- If you didn’t receive a notice and you have

ceived a notice, check your online account at you owe. If you owe additional tax, you should mine if you have paid the full amount of tax that



When you complete your return, you will deter- Offset against debts. If you are due a refund You don’t have to pay if the amount you but haven’t paid certain amounts you owe, all or TIP owe is under $1. mine if you paid more income tax than you part of your refund may be used to pay all or owed. If so, you can get a refund of the amount Refunds IRS.gov/Account or contact the IRS. pay it with your return.



have any of it refunded to you after the due date CAUTION ! If you choose to have a 2025 overpay- chapter 13. tified if the refund you claimed has been offset ment applied to your 2026 estimated against your debts. tax, you can’t change your mind and If you don’t pay your tax when due, you ! Joint return and injured spouse. When a may have to pay a failure-to-pay pen-(without extensions) of your 2025 return. joint return is filed and only one spouse owes a CAUTION alty. See Penalties , later. For more in-formation about your balance due, see Pub. past-due amount, the other spouse can be con-Follow the Instructions for Form 1040 to 594. sidered an injured spouse. An injured spouse complete the entries to claim your refund and/or should file Form 8379, Injured Spouse Alloca-to apply your overpayment to your 2026 estima-part of the overpayment to your next year’s ceive a bill for any tax that is due. You should (such as student loans), state income tax, child (2026) estimated tax. pay this bill within 30 days (or by the due date of and spousal support payments, and state un- your return, if later). See Tax Figured by IRS in employment compensation debt. You will be no- you overpaid or you can choose to apply all or If the IRS figures your tax for you, you will re- past-due federal income tax, other federal debts part of the past-due amount. This includes



ted tax. tion, if both of the following apply and the If the amount you owe for 2025 is large, TIP you may want to increase the amount spouse wants a refund of their share of the of income tax withheld from your pay or If your refund for 2025 is large, you may overpayment shown on the joint return. make estimated tax payments for 2026. See TIP want to decrease the amount of in- 1. You aren’t legally obligated to pay the chapter 4 for more information. come tax withheld from your pay in past-due amount. 2026. See chapter 4 for more information.



checking, savings, health savings, brokerage, or DIRECT 2. You made and reported tax payments How To Pay DEPOSIT Have your refund de-(such as federal income tax withheld from posited directly into your Simple. Safe. Secure. You can pay online, by phone, by mobile device, your wages or estimated tax payments), or in cash, or by check or money order. Don’t in-claimed a refundable tax credit (see the other similar account, including an individual re-clude any estimated tax payment for 2026 in credits listed under Who Should File , ear-tirement arrangement (IRA). Follow the Instruc-this payment. Instead, make the estimated tax lier). tions for Form 1040 to request direct deposit. payment separately.



Publication 17 (2025) Chapter 1 Filing Information 15 Insufficient funds. The penalty for making a If the IRS figures your tax for you, to Gift To Reduce Debt





payment to the IRS that was dishonored is $25 TIP avoid interest for late payment, you Held by the Public or 2% of the dishonored payment amount, must pay the bill by the date specified




whichever is more. However, if the dishonored on the bill or by the due date of your return, You can make a contribution (gift) to re-payment amount is less than $25, the penalty whichever is later. For information, see Tax Fig-duce debt held by the public. If you equals the amount paid. This penalty applies to ured by IRS in chapter 13. wish to do so, go to Pay.gov and make all acceptable forms of payment if the IRS a contribution by credit card, debit card, PayPal, doesn’t receive the funds. Interest on penalties. Interest is charged on checking account, or savings account. the failure-to-file penalty, the accuracy-related Pay online. Paying online is convenient and penalty, and the fraud penalty from the due date secure and helps make sure we get your pay-Don’t add this gift to any tax you owe. of the return (including extensions) to the date ments on time. of payment. Interest on other penalties starts on For information on making this type of gift You can pay online with a direct transfer the date of notice and demand, but isn’t online, go to TreasururyDirect.gov/Help-Center/ from your bank account using IRS Direct Pay or charged on penalties paid within 21 calendar Public-Debt-FAQs/#DebtFinance and see the the Electronic Federal Tax Payment System days from the date of the notice (or within 10 information under “How do you make a contri-(EFTPS), or by debit or credit card. business days if the notice is for $100,000 or bution to reduce the debt?” To pay your taxes online or for more informa-more). You may be able to deduct this gift as a tion, go to IRS.gov/Payments . charitable contribution on next year’s tax return Interest due to IRS error or delay. All or part Pay by phone. Paying by phone is another if you itemize your deductions on Schedule A of any interest you were charged can be for-safe and secure method of paying online. Use (Form 1040). given if the interest is due to an unreasonable one of the following methods. error or delay by an officer or employee of the Name and Address IRS in performing a ministerial or managerial • EFTPS. act. • Debit or credit card. A ministerial act is a procedural or mechani-Fill in your name and address in the appropriate To get more information about EFTPS or to cal act that occurs during the processing of your area of Form 1040 or 1040-SR. If you are mar-enroll in EFTPS, visit EFTPS.gov or call case. A managerial act includes personnel ried filing a separate return, enter your spouse’s 800-555-4477. To contact EFTPS using Tele-transfers and extended personnel training. A name in the entry space below the filing status communications Relay Services (TRS) for peo-decision concerning the proper application of checkboxes instead of below your name. If you ple who are deaf, hard of hearing, or have a federal tax law isn’t a ministerial or managerial are currently incarcerated, enter your inmate speech disability, dial 711 and then provide the act. identifying number near your last name. TRS assistant the 800-555-4477 number or The interest can be forgiven only if you You must include your SSN in the cor-800-733-4829. Additional information about aren’t responsible in any important way for the rect place on your tax return. EFTPS is also available in Pub. 966. error or delay and the IRS has notified you in ! To pay using a debit or credit card, you can CAUTION writing of the deficiency or payment. For more call one of the following service providers. information, see Pub. 556. P.O. box. If your post office doesn’t deliver mail There is a convenience fee charged by these Interest and certain penalties may also be to your street address and you have a P.O. box, providers that varies by provider, card type, and suspended for a limited period if you filed your enter your P.O. box number on the line for your payment amount. return by the due date (including extensions) present home address instead of your street ad-



888-PAY-1040TM (888-729-1040) it before the close of the 36-month period begin- enter the city name on the appropriate line. PAY1040.com ning on the later of: Don’t enter any other information on that line, • The date the return is filed, or but do complete the spaces below that line ACI Payments, Inc. Link2Gov Corporation specifically stating your liability and the basis for Foreign address. If you have foreign address, and the IRS doesn’t provide you with a notice dress.



888-UPAY-TAX • (Foreign country name, Foreign province/state/ The due date of the return without regard TM (888-872-9829) county, and Foreign postal code). to extensions. fed.acipayonline.com Don’t abbreviate the country name. For more information, see Pub. 556.

For the latest details on how to pay by Where Do I File?

phone, go to IRS.gov/Payments. Installment Agreement

Pay by cash. You can pay your taxes in cash. If you can’t pay the full amount due with your re- After you complete your return, you must send it To find out about the different cash payment turn, you can ask to make monthly installment to the IRS. If you must mail your return, mail it to

methods, go to IRS.gov/PayCash. Don’t send payments for the full or a partial amount. How- the address shown in the Instructions for Form

cash payments through the mail. ever, you will be charged interest and may be 1040. See File Electronically, earlier.



sider alternative methods. One of our safe, request is granted, you must also pay a fee. To quick, and easy electronic payment options I File? limit the interest and penalty charges, pay as might be right for you. If you choose to mail a much of the tax as possible with your return. But After you send your return to the IRS, you may tax payment, attach Form 1040-V. For the most before requesting an installment agreement, have some questions. This section discusses up-to-date information on Form 1040-V, go to mitting a payment through the mail, please con- request to pay in installments is granted. If your What Happens After Pay by check or money order. Before sub- paid by the date your return is due, even if your charged a late payment penalty on the tax not



IRS.gov/Form1040V you should consider other less costly alterna- concerns you may have about recordkeeping, . tives, such as a bank loan or credit card pay- your refund, and what to do if you move. Estimated tax payments. Don’t include any ment.

2026 estimated tax payment in the payment for To apply for an installment agreement on- What Records Should

your 2025 income tax return. See chapter 4 for line, go to IRS.gov/OPA. You can also use Form I Keep? information on how to pay estimated tax. 9465.

Interest This part discusses why you should keep re- In addition to paying by check or money or-

der, you can use a credit or debit card or direct

Interest is charged on tax you don’t pay by the payment from your bank account to make in- cords, what kinds of records you should keep,

due date of your return. Interest is charged even stallment agreement payments. See and how long you should keep them. How To

if you get an extension of time for filing. Pay, earlier.



16 Chapter 1 Filing Information Publication 17 (2025)





You must keep records so that you can cords. They can help you prepare future tax re- When you sell your home, your records prepare a complete and accurate in- turns, and you will need them if you file an should show the sales price and any selling ex-


RECORDS come tax return. The law doesn’t re- amended return or are audited. Copies of your penses, such as commissions. For information quire any special form of records. However, you returns and other records can be helpful to your on selling your home, see Pub. 523.



should keep all receipts, canceled checks or survivor or the executor or administrator of your Investments. Your basic records should ena-other proof of payment, and any other records estate. ble you to determine your basis in an invest-to support any deductions or credits you claim. You can get a transcript, review your most ment and whether you have a gain or loss when recently filed tax return, and get your adjusted If you file a claim for refund, you must be you sell it. Investments include stocks, bonds, gross income from your online account. To cre-able to prove by your records that you have and mutual funds. Your records should show the ate or access your online account go to overpaid your tax. purchase price, sales price, and commissions. IRS.gov/Account . This part doesn’t discuss the records you They may also show any reinvested dividends, If necessary, you can request a copy of a re-should keep when operating a business. For in-stock splits and dividends, load charges, and turn and all attachments (including Form W-2) formation on business records, see Pub. 583. original issue discount (OID). from the IRS by using Form 4506. There is a For information on stocks, bonds, and mu-charge for a copy of a return. For information on tual funds, see Pub. 550 and Pub. 551. Why Keep Records? the cost and where to file, see the Instructions for Form 4506. Proof of Payment Good records help you: If you just need information from your return,



• you can order a transcript in one of the following One of your basic records is proof of payment. Identify sources of income. Your records ways. You should keep these records to support cer- can identify the sources of your income to tain amounts shown on your tax return. Proof of help you separate business from nonbusi- • Access your online account at IRS.gov/ payment alone isn’t proof that the item claimed ness income and taxable from nontaxable Account . on your return is allowable. You should also income. • Go to IRS.gov/Transcript . keep other documents that will help prove that • Keep track of expenses. You can use the item is allowable. • Use Form 4506-T or Form 4506T-EZ. your records to identify expenses for which Generally, you prove payment with a cash you can claim a deduction. This helps you • Call 800-908-9946. receipt, financial account statement, credit card determine if you can itemize deductions on There is no fee for a transcript. For more infor- statement, canceled check, or substitute check. your tax return. mation, see Form 4506-T. If you make payments in cash, you should get a

• Keep track of the basis of property. You dated and signed receipt showing the amount

need to keep records that show the basis and the reason for the payment. Basic Records of your property. This includes the original If you make payments using your bank ac-

cost or other basis of the property and any count, you may be able to prove payment with Basic records are documents that everybody

improvements you made. an account statement. should keep. These are the records that prove

• Prepare tax returns. You need records to your income and expenses. If you own a home Account statements. You may be able to



• tain documents related to those items. statement prepared by your bank or other finan- Support items reported on tax returns. cial institution. prepare your tax return. or investments, your basic records should con- prove payment with a legible financial account

The IRS may question an item on your re- Income. Your basic records prove the amounts



item and arrive at the correct tax. If you come may include wages, dividends, interest, penses withheld from your paycheck, such as and partnership or S corporation distributions. turn. Your records will help you explain any you report as income on your tax return. Your in- Pay statements. You may have deductible ex-can’t produce the correct documents, you medical insurance premiums. You should keep

may have to pay additional tax and be sub- Your records can also prove that certain your year-end or final pay statements as proof ject to penalties. amounts aren’t taxable, such as tax-exempt in- of payment of these expenses.

terest.



Kinds of Records To Keep Note: If you receive a Form W-2, keep Copy How Long To Keep C until you begin receiving social security bene-Records The IRS doesn’t require you to keep your re-fits. This will help protect your benefits in case cords in a particular way. Keep them in a man-there is a question about your work record or You must keep your records as long as they ner that allows you and the IRS to determine earnings in a particular year. may be needed for the administration of any your correct tax. provision of the Internal Revenue Code. Gener-Expenses. Your basic records prove the ex-You can use your checkbook to keep a re-ally, this means you must keep records that sup-penses for which you claim a deduction (or cord of your income and expenses. You also port items shown on your return until the period credit) on your tax return. Your deductions may need to keep documents, such as receipts and of limitations for that return runs out. include alimony, charitable contributions, mort-sales slips, that can help prove a deduction. The period of limitations is the period of time gage interest, and real estate taxes. You may In this section, you will find guidance about in which you can amend your return to claim a also have childcare expenses for which you can basic records that everyone should keep. The credit or refund or the IRS can assess additional claim a credit. section also provides guidance about specific tax. Table 1-6 contains the periods of limitations records you should keep for certain items. Home. Your basic records should enable you that apply to income tax returns. Unless other-to determine the basis or adjusted basis of your wise stated, the years refer to the period begin-Electronic records. All requirements that ap-home. You need this information to determine if ning after the return was filed. Returns filed be-ply to hard copy books and records also apply you have a gain or loss when you sell your fore the due date are treated as being filed on to electronic storage systems that maintain tax home or to figure depreciation if you use part of the due date. books and records. When you replace hard your home for business purposes or for rent. copy books and records, you must maintain the Your records should show the purchase price, electronic storage systems for as long as they Table 1-6. Period of Limitations settlement or closing costs, and the cost of any are material to the administration of tax law. improvements. They may also show any casu-For details on electronic storage system re-IF you... THEN the alty losses deducted and insurance reimburse-quirements, see Revenue Procedure 97-22, period is... ments for casualty losses. which is on page 9 of Internal Revenue Bulletin For detailed information on basis, including 1 File a return and (2), 3 years. 1997-13 at IRS.gov/pub/irs-irbs/irb97-13.pdf . which settlement or closing costs are included (3), and (4) don’t apply Copies of tax returns. You should keep cop-in the basis of your home, see Pub. 551. to you, ies of your tax returns as part of your tax re-

Publication 17 (2025) Chapter 1 Filing Information 17





Property. Keep records relating to property un-2 Don’t report income File your claim within the period of time that ap- If you need a copy of your return, see Copies of 6 years. plies. See Amended Returns and Claims for Re- tax returns under Kinds of Records To Keep, that you should and it is fund , later. If you don’t accept a refund, no more earlier, in this chapter. more than 25% of the interest will be paid on the overpayment inclu- gross income shown on Form 1040-X. Use Form 1040-X to correct a ded in the payment amount. return you have already filed. your return, Interest on erroneous refund. All or part of 3 File a fraudulent return, No limit. any interest you were charged on an erroneous Completing Form 1040-X. On Form 1040-X, enter your income, deductions, and refund will generally be forgiven. Any interest 4 Don’t file a return, No limit. charged for the period before demand for repay- credits as you originally reported them on your 5 File a claim for credit or The later of 3 ment was made will be forgiven unless: return; the changes you are making; and the refund after you filed years or 2 corrected amounts. Then, figure the tax on the 1. You, or a person related to you, caused your return, years after tax corrected amount of taxable income and the the erroneous refund in any way; or was paid. amount you owe or your refund. If you owe tax, the IRS offers several pay- 2. The refund is more than $50,000. 6 File a claim for a loss 7 years. ment options. See How To Pay , earlier. The tax from worthless For example, if you claimed a refund of $100 owed won’t be subtracted from any amount you securities or bad debt on your return, but the IRS made an error and had credited to your estimated tax. deduction, sent you $1,000, you wouldn’t be charged inter- If you can’t pay the full amount due with your est for the time you held the $900 difference. return, you can ask to make monthly installment You must, however, repay the $900 when the payments. See Installment Agreement , earlier. IRS asks. If you overpaid tax, you can have all or part til the period of limitations expires for the year in of the overpayment refunded to you, or you can Change of Address which you dispose of the property in a taxable apply all or part of it to your estimated tax. If you disposition. You must keep these records to fig- choose to get a refund, it will be sent separately


ure your basis for computing gain or loss when If you have moved, file your return using your from any refund shown on your original return.



of limitations expires for the year in which you File a separate form for each tax year in- Center serving your old address. You can use volved. dispose of the new property in a taxable dispo- Form 8822, Change of Address. If you are ex- You can file Form 1040-X electronically to sition. pecting a refund, also notify the post office serv- amend Form 1040 and 1040-SR for the current ing your old address. This will help in forwarding year or the two prior tax periods. For more infor- Refund Information your check to your new address (unless you mation, see Instructions for Form 1040-X. chose direct deposit of your refund). For more If you must mail your Form 1040-X, mail it to information, see Revenue Procedure 2010-16, You can go online to check the status of your the Internal Revenue Service Center serving the 2010-19 I.R.B. 664, available at IRS.gov/irb/ 2025 refund 24 hours after the IRS receives area where you now live (as shown in the In- 2010-19_IRB/ar07.html . your e-filed return, or 4 weeks after you mail a structions for Form 1040-X). However, if you are Be sure to include your SSN (and the name paper return. If you filed Form 8379 with your re- filing Form 1040-X in response to a notice you and SSN of your spouse if you filed a joint re- turn, allow 14 weeks (11 weeks if you filed elec- taxable exchange, your basis in that property is should give the IRS clear and concise notifica- your original return and explain all changes you the same as the basis of the property you gave tion of your change of address. The notification made. Be sure to attach any forms or schedules up. You must keep the records on the old prop-may be written, electronic, or oral. Send written needed to explain your changes. erty, as well as the new property, until the period notification to the Internal Revenue Service you sell or otherwise dispose of the property. new address. Generally, if you received property in a non- Filing Form 1040-X. When completing If you move after you filed your return, you Form 1040-X, don’t forget to show the year of



tronically) before checking your refund status. turn) in any correspondence with the IRS. received from the IRS, mail it to the address shown on the notice. Be sure to have a copy of your 2025 tax return What if I Made Time for filing a claim for refund. Generally, available because you will need to know the fil- you must file your claim for a credit or refund ing status, the first SSN shown on the return, a Mistake? within 3 years after the date you filed your origi- and the exact whole-dollar amount of the re- nal return or within 2 years after the date you fund. To check on your refund, do one of the fol- Errors may delay your refund or result in notices paid the tax, whichever is later. Returns filed be- lowing. being sent to you. If you discover an error, you fore the due date (without regard to extensions) • Go to IRS.gov/Refunds . can file an amended return or claim for refund. are considered filed on the due date (even if the due date was a Saturday, Sunday, or legal holi- • Download the free IRS2Go app to your day). These time periods are suspended while smart phone and use it to check your re- Amended Returns and fund status. you are financially disabled , discussed later. Claims for Refund If the last day for claiming a credit or refund • Call the automated refund hotline at is a Saturday, Sunday, or legal holiday, you can 800-829-1954. You should correct your return if, after you have file the claim on the next business day. filed it, you find that: If you don’t file a claim within this period, you Interest on Refunds may not be entitled to a credit or a refund. 1. You didn’t report some income,

If you are due a refund, you may get interest on 2. You claimed deductions or credits you Federally declared disaster. If you were

it. The interest rates are adjusted quarterly. shouldn’t have claimed, affected by a federally declared disaster, you

due date of your return, no interest will be paid. If the refund is made within 45 days after the may have additional time to file your amended 3. You didn’t claim deductions or credits you return. See Pub. 556 for details. could have claimed, or



If you file your return after the due date (includ- Protective claim for refund. Generally, a pro- 4. You should have claimed a different filing ing extensions), no interest will be paid if the re- tective claim is a formal claim or amended re- status. (Once you file a joint return, you fund is made within 45 days after the date you turn for credit or refund normally based on cur- can’t choose to file separate returns for filed. If the refund isn’t made within this 45-day rent litigation or expected changes in tax law or that year after the due date of the return. period, interest will be paid from the due date of other legislation. You file a protective claim However, an executor may be able to the return or from the date you filed, whichever when your right to a refund is contingent on fu- make this change for a deceased spouse.) is later. ture events and may not be determinable until Accepting a refund doesn’t change your after the statute of limitations expires. A valid right to claim an additional refund and interest. protective claim doesn’t have to list a particular

18 Chapter 1 Filing Information Publication 17 (2025) dollar amount or demand an immediate refund. your claim more than 3 years after you filed your lowed, or subject to examination. If a claim is However, a valid protective claim must: return, your refund will be limited to the $200 examined, the procedures are the same as in





Mail your protective claim for refund to the ad-• you paid during the 2 years immediately before the examination of a tax return. Be in writing and signed; you filed your claim. If your claim is disallowed, you will receive • Include your name, address, SSN or ITIN, an explanation of why it was disallowed. Financially disabled. The time periods for and other contact information; claiming a refund are suspended for the period Taking your claim to court. You can sue for a • Identify and describe the contingencies af-in which you are financially disabled. For a joint refund in court, but you must first file a timely fecting the claim; income tax return, only one spouse has to be fi-claim with the IRS. If the IRS disallows your • Clearly alert the IRS to the essential nature nancially disabled for the time period to be sus-claim or doesn’t act on your claim within 6 of the claim; and pended. You are financially disabled if you are months after you file it, you can then take your unable to manage your financial affairs because claim to court. For information on the burden of • Identify the specific year(s) for which a re-of a medically determinable physical or mental proof in a court proceeding, see Pub. 556. fund is sought. impairment that can be expected to result in The IRS provides a direct method to move death or that has lasted or can be expected to your claim to court if: dress listed in the Instructions for Form 1040-X last for a continuous period of not less than 12 • You are filing a claim for a credit or refund under Where To File. months. However, you aren’t treated as finan-based solely on contested income tax or Generally, the IRS will delay action on the cially disabled during any period your spouse or on estate tax or gift tax issues considered protective claim until the contingency is re-any other person is authorized to act on your in your previously examined returns, and solved. behalf in financial matters. • To claim that you are financially disabled, You want to take your case to court instead Limit on amount of refund. If you file your you must send in the following written state-of appealing it within the IRS. claim within 3 years after the date you filed your ments with your claim for refund. return, the credit or refund can’t be more than When you file your claim with the IRS, you the part of the tax paid within the 3-year period 1. A statement from your qualified physician get the direct method by requesting in writing




payments, made before the due date (without or in the U.S. Court of Federal Claims. managing your financial affairs; regard to extensions) of the original return are Interest on refund. If you receive a refund be-c. The physician’s medical opinion that considered paid on the due date. For example, cause of your amended return, interest will be income tax withheld during the year is consid-the impairment was or can be expec-paid on it from the due date of your original re-ered paid on the due date of the return, which is ted to result in death, or that its dura-turn or the date you filed your original return, tion has lasted, or can be expected to April 15 for most taxpayers. whichever is later, to the date you filed the last, at least 12 months; amended return. However, if the refund isn’t Example 1. You made estimated tax pay-made within 45 days after you file the amended d. The specific time period (to the best of ments of $500 and got an automatic extension return, interest will be paid up to the date the re-the physician’s knowledge); and of time to October 15, 2022, to file your 2021 in-cially disabled finan- You have 2 years from the date of mailing of physical or mental impairment; , discussed later. the notice of claim disallowance to file a refund b. The physician’s medical opinion that suit in the U.S. District Court having jurisdiction Tax paid. Payments, including estimated tax the impairment prevented you from immediately before you filed the claim. This tice of claim disallowance will be sent to you. a. The name and a description of your time period is suspended while you are (plus any extension of time for filing your return) that includes: that your claim be immediately rejected. A no-

fund is paid.

that date, you paid an additional $200 tax. On Reduced refund. Your refund may be reduced come tax return. When you filed your return on e. The following certification signed by

October 15, 2025, you filed an amended return by an additional tax liability that has been as- the physician: “I hereby certify that, to

and claimed a refund of $700. Because you sessed against you. the best of my knowledge and belief, the above representations are true,



Example 1, except you filed your return on Oc- to act for you). tober 30, 2022, 2 weeks after the extension pe- Effect on state tax liability. If your return is riod ended. You paid an additional $200 on that Exceptions for special types of refunds. If changed for any reason, it may affect your state date. On October 30, 2025, you filed an amen-you file a claim for one of the items in the follow-income tax liability. This includes changes ded return and claimed a refund of $700. Al-ing list, the dates and limits discussed earlier made as a result of an examination of your re-though you filed your claim within 3 years from may not apply. These items, and where to get turn by the IRS. Contact your state tax agency the date you filed your original return, the refund more information, are as follows. for more information. was limited to $200, the tax paid within the 3 • Bad debt. See Pub. 550. years plus the 6-month extension period imme-• diately before you filed the claim. The estimated Worthless security. See Pub. 550. Penalties tax of $500 paid before that period can’t be re-• Foreign tax paid or accrued. See Pub. 514. The law provides penalties for failure to file re-funded or credited. turns or pay taxes as required. • Net operating loss carryback. See Form If you file a claim more than 3 years after you 172 and the Instructions for Form 172. 6-month extension period immediately before the claim for credit or refund that no per- debts, child support, spousal support, or certain son, including your spouse, was author- other federal nontax debts, such as student you filed the claim. ized to act on your behalf in financial mat- loans. If your spouse owes these debts, see ters during the period of disability (or the Offset against debts under Refunds, earlier, for Example 2. The situation is the same as in exact dates that a person was authorized the correct refund procedures to follow. your original return, you can get a refund of up amounts you owe for past-due federal tax, state 2. A statement made by the person signing income tax, state unemployment compensation to $700, the tax paid within the 3 years plus the filed your claim within 3 years after you filed Also, your refund may be reduced by correct, and complete.”

more than the tax you paid within the 2 years • Carryback of certain business tax credits. If you don’t file your return and pay your tax by immediately before you file the claim. file your return, the credit or refund can’t be Civil Penalties

See Form 3800. the due date, you may have to pay a penalty.

Example. You filed your 2021 tax return on • Claim based on an agreement with the IRS You may also have to pay a penalty if you sub-

April 15, 2022. You paid taxes of $500. On No- extending the period for assessment of tax. stantially understate your tax, understate a re-



vember 5, 2023, after an examination of your portable transaction, file an erroneous claim for refund or credit, file a frivolous tax submission, 2021 return, you had to pay an additional tax of Processing claims for refund. Claims are or fail to supply your SSN or ITIN. If you provide $200. On May 12, 2025, you file a claim for a usually processed 8–12 weeks after they are

refund of $300. However, because you filed filed. Your claim may be accepted as filed, disal-

Publication 17 (2025) Chapter 1 Filing Information 19 fraudulent information on your return, you may The penalty is equal to 20% of the underpay- Foreign financial asset. For more informa-have to pay a civil fraud penalty. ment. The penalty is 40% of any portion of the tion on undisclosed foreign financial assets, see





due date (including extensions), you may have an undisclosed foreign financial asset transac- Reasonable cause. You won’t have to pay a to pay a failure-to-file penalty. The penalty is tion. The penalty won’t be figured on any part of penalty if you show a good reason (reasonable usually 5% for each month or part of a month Filing late. If you don’t file your return by the closed noneconomic substance transaction or underpayment that is attributable to an undis- section 6662(j).


that a return is late, but not more than 25%. The (discussed later) is charged. an underpayment on which the fraud penalty cause) for the way you treated an item. You



date (without regard to extensions). Negligence or disregard. The term “negli- economic substance. gence” includes a failure to make a reasonable Fraud. If your failure to file is due to fraud, penalty is based on the tax not paid by the due This doesn’t apply to a transaction that lacks must also show that you acted in good faith.

attempt to comply with the tax law or to exercise Filing erroneous claim for refund or credit.

the penalty is 15% for each month or part of a You may have to pay a penalty if you file an erro- ordinary and reasonable care in preparing a re-

month that your return is late, up to a maximum turn. Negligence also includes failure to keep neous claim for refund or credit. The penalty is of 75%. adequate books and records. You won’t have to equal to 20% of the disallowed amount of the

pay a negligence penalty if you have a reasona- claim, unless you can show a reasonable basis

Return over 60 days late. If you file your re- for the way you treated an item. However, any ble basis for a position you took.

turn more than 60 days after the due date, or The term “disregard” includes any careless, disallowed amount due to a transaction that extended due date, the minimum penalty is the reckless, or intentional disregard. lacks economic substance won’t be treated as smaller of $525 or 100% of the unpaid tax. having a reasonable basis. The penalty won’t

Adequate disclosure. You can avoid the be figured on any part of the disallowed amount

Exception. You won’t have to pay the pen- penalty for disregard of rules or regulations if of the claim that relates to the earned income

alty if you show that you failed to file on time be- you adequately disclose on your return a posi- credit or on which the accuracy-related or fraud



Paying tax late. You will have to pay a fail- pay a penalty of $5,000 if you file a frivolous tax attributable to a tax shelter. In addition, it won’t 1 ure-to-pay penalty of / 2 of 1% (0.50%) of your return or other frivolous submissions. A frivolous apply if you fail to keep adequate books and re- unpaid taxes for each month, or part of a month, tax return is one that doesn’t include enough in- cords, or substantiate items properly. after the due date that the tax isn’t paid. This formation to figure the correct tax or that con- Substantial understatement of income penalty doesn’t apply during the automatic tains information clearly showing that the tax tax. You understate your tax if the tax shown on willful neglect. Disclosure statement, later. Frivolous tax submission. You may have to This exception won’t apply to an item that is cause of reasonable cause and not because of tion that has at least a reasonable basis. See penalties are charged.

6-month extension of time to file period if you you reported is substantially incorrect. For more

paid at least 90% of your actual tax liability on or your return is less than the correct tax. The un- information on frivolous returns, frivolous sub-before the due date of your return and pay the derstatement is substantial if it is more than the missions, and a list of positions that are identi-balance when you file the return. larger of 10% of the correct tax or $5,000. How- fied as frivolous, see Notice 2010-33, 2010-17

The monthly rate of the failure-to-pay pen- ever, the amount of the understatement may be I.R.B. 609, available at IRS.gov/irb/

alty is half the usual rate (0.25% instead of reduced to the extent the understatement is due 2010-17_IRB/ar13.html. 0.50%) if an installment agreement is in effect to: You will have to pay the penalty if you filed for that month. You must have filed your return this kind of return or submission based on a friv- 1. Substantial authority, or

by the due date (including extensions) to qualify olous position or a desire to delay or interfere

for this reduced penalty. 2. Adequate disclosure and a reasonable ba- with the administration of federal tax laws. This



will increase to 1% at the start of the first month language above the space provided for your If an item on your return is attributable to a tax beginning at least 10 days after the day that the signature. shelter, there is no reduction for an adequate notice is issued. If a notice and demand for im- If a notice of intent to levy is issued, the rate sis. includes altering or striking out the preprinted

disclosure. However, there is a reduction for a This penalty is added to any other penalty



not paying your tax on time. turn doesn’t apply to a spouse unless some part are court opinions, Treasury regulations, reve- Combined penalties. If both the failure-to-file of the underpayment is due to the fraud of that nue rulings, revenue procedures, and notices spouse. penalty and the failure-to-pay penalty (dis- and announcements issued by the IRS and cussed earlier) apply in any month, the 5% (or published in the Internal Revenue Bulletin that Failure to supply SSN. If you don’t include 15%) failure-to-file penalty is reduced by the involve the same or similar circumstances as your SSN or the SSN of another person where failure-to-pay penalty. However, if you file your yours. required on a return, statement, or other docu- return more than 60 days after the due date or ment, you will be subject to a penalty of $50 for extended due date, the minimum penalty is the Disclosure statement. To adequately dis- each failure. You will also be subject to a pen- smaller of $525 or 100% of the unpaid tax. close the relevant facts about your tax treatment alty of $50 if you don’t give your SSN to another of an item, use Form 8275. You must also have person when it is required on a return, state- Accuracy-related penalty. You may have to a reasonable basis for treating the item the way ment, or other document. pay an accuracy-related penalty if you underpay you did. your tax because: For example, if you have a bank account that In cases of substantial understatement only, earns interest, you must give your SSN to the 1. You show negligence or disregard of the demand is issued. your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to Substantial authority. Whether there is or This penalty can’t be more than 25% of your your tax. was substantial authority for the tax treatment of unpaid tax. You won’t have to pay the penalty if an item depends on the facts and circumstan- you can show that you had a good reason for Joint return. The fraud penalty on a joint re- ces. Some of the items that may be considered crease to 1% at the start of the first month be- reasonably believed that your tax treatment was Fraud. If there is any underpayment of tax on ginning after the day that the notice and more likely than not the proper treatment. mediate payment is issued, the rate will in- provided by law. position with substantial authority, but only if you



2. You substantially understate your income ered adequately disclosed on your return with- you. If you don’t give the bank your SSN, you out filing Form 8275. tax, will be subject to the $50 penalty. (You may also Use Form 8275-R to disclose items or posi- be subject to “backup” withholding of income 3. You claim tax benefits for a transaction rules or regulations, 1099-INT or other statement the bank sends Procedure 2024-44 (or later update) are consid- bank. The number must be shown on the Form items that meet the requirements of Revenue

tions contrary to regulations.

tax. See chapter 4.)

that lacks economic substance, or

Transaction lacking economic substance. You won’t have to pay the penalty if you are

4. You fail to disclose a foreign financial as- For more information on economic substance, able to show that the failure was due to reason-

set. see section 7701(o). able cause and not willful neglect.

20 Chapter 1 Filing Information Publication 17 (2025)





You may be subject to criminal prosecution of the IRS name, logo, forms, or other IRS prop-Criminal Penalties phishing@irs.gov. You may also report misuse Marital Status




(brought to trial) for actions such as: erty to the Treasury Inspector General for Tax Administration toll free at 800-366-4484. You In general, your filing status depends on 1. Tax evasion; can forward suspicious emails to the Federal whether you are considered unmarried or mar-



Identity Theft 2. Willful failure to file a return, supply infor- Trade Commission (FTC) at spam@uce.gov or ried. report them at ftc.gov/complaint . You can con-mation, or pay any tax due; Unmarried persons. You are considered un-tact them at ftc.gov/idtheft or 877-IDTHEFT married for the whole year if, on the last day of 3. Fraud and false statements; (877-438-4338). If you have been a victim of your tax year, you are either: identity theft, see IdentityTheft.gov or Pub. 4. Preparing and filing a fraudulent return; or 5027. People who are deaf, hard of hearing, or • Unmarried, or 5. Identity theft. have a speech disability and who have access • Legally separated from your spouse under to TTY/TDD equipment can call 866-653-4261. a divorce or separate maintenance decree. Go to IRS.gov/IDProtection to learn more State law governs whether you are married about identity theft and how to reduce your risk. or legally separated under a divorce or separate Identity theft occurs when someone uses your maintenance decree. personal information such as your name, SSN, Definition of marriage. A marriage of two indi-or other identifying information, without your viduals is recognized for federal tax purposes if permission, to commit fraud or other crimes. An the marriage is recognized by the state or terri-identity thief may use your SSN to get a job or 2. may file a tax return using your SSN to receive a refund. tory of the United States in which the marriage is entered into, regardless of legal residence. Two individuals who enter into a relationship To reduce your risk: that is denominated as marriage under the laws • Protect your SSN, Filing Status • Ensure your employer is protecting your of a foreign jurisdiction or an American Indian tribe are recognized as married for federal tax SSN, and purposes if the relationship would be recog-nized as marriage under the laws of at least one • Be careful when choosing a tax preparer. Introduction state or territory of the United States, regardless If your tax records are affected by identity of legal residence. Individuals who have en-theft and you receive a notice from the IRS, re- This chapter helps you determine which filing tered into a registered domestic partnership,



ber printed on the IRS notice or letter. denominated as a marriage under the law of the Single. • If your SSN has been lost or stolen or you spond right away to the name and phone num- status to use. There are five filing statuses. civil union, or other similar relationship that isn’t

state or territory of the United States where



theft, visit IRS.gov/IdentityTheft to learn what fully married for federal tax purposes, regard- • Married filing separately. steps you should take. less of legal residence. See Considered mar- • suspect you are a victim of tax-related identity • Married filing jointly. such relationship was entered into aren’t law-

For more information, see Pub. 5027. Head of household. ried, next.

All taxpayers are now eligible for an • Qualifying surviving spouse. Divorced persons. If you are divorced un-

TIP der a final decree by the last day of the year, Identity Protection Personal Identifica- If more than one filing status applies to

tion Number (IP PIN). For more infor- you are considered unmarried for the whole TIP you, choose the one that will give you

mation, see Pub. 5477. To apply for an IP PIN, year. the lowest tax.



go to IRS.gov/IPPIN and use the Get an IP PIN You must determine your filing status before Divorce and remarriage. If you obtain a di-tool. you can determine whether you must file a tax vorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce Victims of identity theft who are experienc-return ( chapter 1 ), your standard deduction ( ing economic harm or a systemic problem, or chapter 10 ), and your tax ( chapter 11 ). You you intend to and do, in fact, remarry each other also use your filing status to determine whether are seeking help in resolving tax problems that in the next tax year, you and your spouse must you are eligible to claim certain deductions and have not been resolved through normal chan-file as married individuals in both years.



nels, may be eligible for Taxpayer Advocate credits. Annulled marriages. If you obtain a court Service (TAS) assistance. You can reach TAS decree of annulment, which holds that no valid by calling the National Taxpayer Advocate help-Useful Items marriage ever existed, you are considered un-line at 877-777-4778 or 800-829-4059 (TTY/ You may want to see: married even if you filed joint returns for earlier TDD). Deaf or hard-of-hearing individuals can years. File Form 1040-X, Amended U.S. Individ-also contact the IRS through the Telecommuni-ual Income Tax Return, claiming single or head Publication cations Relay Services (TRS) at FCC.gov/TRS . of household status for all tax years that are af- 3 Protect yourself from suspicious emails 3 Armed Forces’ Tax Guide fected by the annulment and not closed by the statute of limitations for filing a tax return. Gen-or phishing schemes. Phishing is the creation 501 501 Dependents, Standard Deduction, erally, for a credit or refund, you must file Form and Filing Information and use of email and websites designed to 1040-X within 3 years (including extensions) af-mimic legitimate business emails and websites. 503 503 Child and Dependent Care Expenses ter the date you filed your original return or The most common form is the act of sending an within 2 years after the date you paid the tax, email to a user falsely claiming to be an estab- 519 519 U.S. Tax Guide for Aliens whichever is later. If you filed your original return lished legitimate enterprise in an attempt to 555 555 Community Property early (for example, March 1), your return is con-scam the user into surrendering private informa-sidered filed on the due date (generally April tion that will be used for identity theft. 559 559 Survivors, Executors, and 15). However, if you had an extension to file (for The IRS doesn’t initiate contact with taxpay-Administrators example, until October 15) but you filed earlier ers via emails. Also, the IRS doesn’t request de- 596 596 Earned Income Credit (EIC) and we received it on July 1, your return is con-tailed personal information through email or ask sidered filed on July 1. taxpayers for the PIN numbers, passwords, or 925 925 Passive Activity and At-Risk Rules

similar secret access information for their credit Head of household or qualifying surviv- 971 971 Innocent Spouse Relief card, bank, or other financial accounts. ing spouse. If you are considered unmarried,

If you receive an unsolicited email claiming For these and other useful items, go to IRS.gov/ you may be able to file as head of household or

to be from the IRS, forward the message to Forms. as qualifying surviving spouse. See Head of

Publication 17 (2025) Chapter 2 Filing Status 21





Household and Qualifying Surviving Spouse, • You don’t want to be responsible for any Married Filing Jointly later, to see if you qualify. taxes due if your spouse doesn't have




married for the whole year if, on the last day of Considered married. You are considered both you and your spouse agree to file a joint re- Divorced taxpayer. You may be held jointly and individually responsible for any tax, interest, turn. On a joint return, you and your spouse re- and penalties due on a joint return filed before port your combined income and deduct your your divorce. This responsibility may apply even your tax year, you and your spouse meet any combined allowable expenses. You can file a if your divorce decree states that your former one of the following tests. ried, you and your spouse can file a joint return estimated tax. ing status if you are considered married and or separate returns. Married persons. If you are considered mar- You can choose married filing jointly as your fil- enough tax withheld or doesn't pay enough

deductions. spouse will be responsible for any amounts due joint return even if one of you had no income or

1. You are married and living together. on previously filed joint returns.



spouse died during the year, you are consid-2. You are living together in a common law If you and your spouse decide to file a joint Relief from joint responsibility. In some return, your tax may be lower than your com-marriage recognized in the state where cases, one spouse may be relieved of joint re-bined tax for the other filing statuses. Also, your you now live or in the state where the com-sponsibility for tax, interest, and penalties on a standard deduction (if you don’t itemize deduc-mon law marriage began. joint return for items of the other spouse that tions) may be higher, and you may qualify for were incorrectly reported on the joint return. You 3. You are married and living apart, but not tax benefits that don’t apply to other filing sta-can ask for relief no matter how small the liabil-legally separated under a decree of di-tuses. ity. vorce or separate maintenance. How to file. On Form 1040 or 1040-SR, show There are three types of relief available. 4. You are separated under an interlocutory your filing status as married filing jointly by 1. Innocent spouse relief. (not final) decree of divorce. checking the “Married filing jointly” box on the 2. Separation of liability (available only to Filing Status line near the top of the form. Use Spouse died during the year. If your the Married filing jointly column of the Tax Table, joint filers whose spouse has died, or who are divorced, legally separated, or haven't or Section B of the Tax Computation Work-ered married for the whole year for filing status lived together for the 12 months ending on sheet, to figure your tax. purposes. the date the election for this relief is filed). If you didn't remarry before the end of the If you and your spouse each have in-tax year, you can file a joint return for yourself 3. Equitable relief. TIP come, you may want to figure your tax and your deceased spouse. For the next 2 both on a joint return and on separate You must file Form 8857, Request for Inno-years, you may be entitled to the special bene-returns (using the filing status of married filing cent Spouse Relief, to request relief from joint fits described later under Qualifying Surviving separately). You can choose the method that responsibility. Pub. 971 explains these kinds of Spouse . gives the two of you the lower combined tax un-relief and who may qualify for them. If you remarried before the end of the tax less you are required to file separately. year, you can file a joint return with your new Signing a joint return. For a return to be con-spouse. Your deceased spouse's filing status is Spouse died. If your spouse died during the sidered a joint return, both spouses must gener-married filing separately for that year. year, you are considered married for the whole ally sign the return.



apart from your spouse and meet certain tests, Married persons living apart. If you live year and can choose married filing jointly as Spouse died before signing. If your your filing status. See Spouse died during the spouse died before signing the return, the exec-year under Married persons, earlier, for more in-you may be able to file as head of household utor or administrator must sign the return for formation. even if you aren't divorced or legally separated. your spouse. If neither you nor anyone else has If your spouse died in 2026 before filing a If you qualify to file as head of household in-yet been appointed as executor or administra-2025 return, you can choose married filing stead of married filing separately, your standard tor, you can sign the return for your spouse and jointly as your filing status on your 2025 return. deduction will be higher. Also, your tax may be enter “Filing as surviving spouse” in the area lower, and you may be able to claim the earned Divorced persons. If you are divorced under a where you sign the return. income credit (EIC). See Head of Household , final decree by the last day of the year, you are Spouse away from home. If your spouse is later. considered unmarried for the whole year and away from home, you should prepare the return, you can’t choose married filing jointly as your fil-sign it, and send it to your spouse to sign so that Single ing status. it can be filed on time.



Your filing status is single if you are considered Injury or disease prevents signing. If your Filing a Joint Return spouse can’t sign because of disease or injury unmarried and you don’t qualify for another fil- and tells you to sign for them, you can sign your ing status. To determine your marital status, see Both you and your spouse must include all of spouse’s name in the proper space on the re- Marital Status , earlier. your income and deductions on your joint re- turn followed by the words “By (your name), turn. Spouse died before January 1, 2025. Your Spouse.” Be sure to sign in the space provided filing status may be single if your spouse died Accounting period. Both of you must use the for your signature. Attach a dated statement, before January 1, 2025, and you didn't remarry same accounting period, but you can use differ- signed by you, to the return. The statement before the end of 2025. You may, however, be ent accounting methods. See Accounting Peri- should include the form number of the return able to use another filing status that will give ods and Accounting Methods in chapter 1. you are filing, the tax year, and the reason your you a lower tax. See Head of Household and spouse can’t sign; it should also state that your Joint responsibility. Both of you may be held Qualifying Surviving Spouse , later, to see if you spouse has agreed to your signing for them. responsible, jointly and individually, for the tax qualify. and any interest or penalty due on your joint re- Signing as guardian of spouse. If you are How to file. On Form 1040 or 1040-SR, show turn. This means that if one spouse doesn't pay the guardian of your spouse who is mentally in- your filing status as single by checking the “Sin- the tax due, the other may have to. Or, if one competent, you can sign the return for your gle” box on the Filing Status line near the top of spouse doesn't report the correct tax, both spouse as guardian. the form. Use the Single column of the Tax Ta- spouses may be responsible for any additional Spouse in combat zone. You can sign a ble, or Section A of the Tax Computation Work- taxes assessed by the IRS. One spouse may be joint return for your spouse if your spouse can’t sheet, to figure your tax. held responsible for all the tax due even if all the sign because they are serving in a combat zone income was earned by the other spouse. (such as the Persian Gulf Area, Serbia, Monte- You may want to file separately if: negro, Albania, or Afghanistan), even if you • You believe your spouse isn't reporting all don’t have a power of attorney or other state- of their income, or ment. Attach a signed statement to your return

22 Chapter 2 Filing Status Publication 17 (2025) explaining that your spouse is serving in a com- Select this filing status by checking the 11. If your spouse itemizes deductions, you bat zone. For more information on special tax “Married filing separately” box on the Filing Sta- can’t claim the standard deduction. If you rules for persons who are serving in a combat tus line near the top of Form 1040 or 1040-SR. can claim the standard deduction, your ba-zone, or who are in missing status as a result of Enter your spouse's full name in the entry space sic standard deduction is half of the serving in a combat zone, see Pub. 3. below the filing status checkbox. Be sure to en- amount allowed on a joint return.





Power of attorney. In order for you to sign a Adjusted gross income (AGI) limits. If your ter your spouse’s SSN or ITIN in the space for


return for your spouse in any of these cases, AGI on a separate return is lower than it would spouse’s SSN. If your spouse doesn't have and

you must attach to the return a power of attor- have been on a joint return, you may be able to isn't required to have an SSN or ITIN, enter

ney (POA) that authorizes you to sign for your deduct a larger amount for certain deductions “NRA” in the space for your spouse's SSN. Use

spouse. You can use a POA that states that you that are limited by AGI, such as medical expen- the Married filing separately column of the Tax

have been granted authority to sign the return, ses. Table, or Section C of the Tax Computation Worksheet, to figure your tax.

or you can use Form 2848, Power of Attorney Individual retirement arrangements (IRAs).

and Declaration of Representative. Part I of You may not be able to deduct all or part of your Special Rules

Form 2848 must state that you are granted au- contributions to a traditional IRA if you or your



Nonresident alien or dual-status alien. Gen- plan at work during the year. Your deduction is filing status, the following special rules apply. reduced or eliminated if your income is more Because of these special rules, you usually pay thority to sign the return. spouse was covered by an employee retirement If you choose married filing separately as your

either one is a nonresident alien at any time dur- than a certain amount. This amount is much erally, a married couple can’t file a joint return if



nonresident alien or dual-status alien who was 1. Your tax rate is generally higher than on a For more information, see How Much Can You married to a U.S. citizen or resident alien at the joint return. Deduct in chapter 9. end of the year, the spouses can choose to file 2. Your exemption amount for figuring the al-a joint return. If you do file a joint return, you and Rental activity losses. If you actively partici-ing the tax year. However, if one spouse was a lower for married individuals who file separately another filing status you qualify for. and lived together at any time during the year. more tax on a separate return than if you use

your spouse are both treated as U.S. residents ternative minimum tax is half that allowed pated in a passive rental real estate activity that



519. loss from your nonpassive income, up to 3. You can’t take the credit for child and de- $25,000. This is called a special allowance. for the entire tax year. See chapter 1 of Pub. on a joint return. produced a loss, you can generally deduct the

Married Filing pendent care expenses in most cases,

Separately come under an employer's dependent turns who lived together at any time during the and the amount you can exclude from in- However, married persons filing separate re-

care assistance program is limited to year can’t claim this special allowance. Married



You can choose married filing separately as at all times during the year are each allowed a turn). However, if you are legally separated your filing status if you are married. This filing $2,500 (instead of $5,000 on a joint re- persons filing separate returns who lived apart

status may benefit you if you want to be respon- or living apart from your spouse, you may $12,500 maximum special allowance for losses

be able to file a separate return and still from passive real estate activities. See Rental



joint return, you must use this filing status un-If you and your spouse don’t agree to file a community property state and file separately, Pub. 503. your income may be considered separate in- come or community income for income tax pur- less you qualify for head of household status, 4. You can’t take the EIC, unless you have a poses. Community property states include Ari- discussed later. qualifying child and meet certain other re- zona, California, Idaho, Louisiana, Nevada, New tax than filing a joint return. these expenses, the credit, and the exclu- Community property states. If you live in a sion, see What’s Your Filing Status? in sible only for your own tax or if it results in less Activities in Pub. 925 for more information. take the credit. For more information about



of Household, later). This can apply to you even American opportunity credit and lifetime Separate Returns learning credit), or the deduction for stu-if you aren't divorced or legally separated. If you You can change your filing status from a sepa-qualify to file as head of household, instead of dent loan interest. rate return to a joint return by filing an amended as married filing separately, your tax may be 7. You can’t exclude any interest income from return using Form 1040-X. lower, you may be able to claim the EIC and qualified U.S. savings bonds you used for You can generally change to a joint return certain other benefits, and your standard de-higher education expenses. any time within 3 years from the due date of the duction will be higher. The head of household separate return or returns. This doesn't include filing status allows you to choose the standard 8. If you lived with your spouse at any time any extensions. A separate return includes a re-deduction even if your spouse chooses to item-during the tax year: turn filed by you or your spouse claiming mar-ize deductions. See Head of Household , later, a. You can’t claim the credit for the eld-hold filing status if you are considered unmar- See Pub. 555 for more information. adoption expenses in most cases. ried because you live apart from your spouse 6. You can’t take the education credits (the and meet certain tests (explained under Head Joint Return After You may be able to choose head of house- Mexico, Texas, Washington, and Wisconsin. 5. You can’t take the exclusion or credit for quirements. See Pub. 596.



for more information. ried filing separately, single, or head of house- erly or the disabled, and hold filing status. You will generally pay more combined b. You must include in income a greater TIP tax on separate returns than you would percentage (up to 85%) of any social Separate Returns After on a joint return for the reasons listed security or equivalent railroad retire- Joint Return under Special Rules , later. However, unless you ment benefits you received. are required to file separately, you should figure Once you file a joint return, you can’t choose to 9. The following credits and deductions are your tax both ways (on a joint return and on sep- file separate returns for that year after the due reduced at income levels half of those for arate returns). This way, you can make sure you date of the return. a joint return. are using the filing status that results in the low- Exception. A personal representative for a de- est combined tax. When figuring the combined a. The child tax credit and the credit for cedent can change from a joint return elected tax of a married couple, you may want to con- other dependents. by the surviving spouse to a separate return for sider state taxes as well as federal taxes. the decedent. The personal representative has b. The retirement savings contributions 1 year from the due date (including extensions) How to file. If you file a separate return, you credit. of the return to make the change. See Pub. 559 generally report only your own income, credits, 10. Your capital loss deduction limit is $1,500 and deductions. (instead of $3,000 on a joint return).

Publication 17 (2025) Chapter 2 Filing Status 23





Worksheet 2-1. Cost of Keeping If you were considered married for part of the year and lived in a community ! Up a Home Keep for Your Records CAUTION property state (listed earlier under Mar-


ried Filing Separately), special rules may apply

Amount in determining your income and expenses. See

You Paid Total Cost Pub. 555 for more information.

Property taxes $ $ Nonresident alien spouse. You are consid-

Mortgage interest expense ered unmarried for head of household purposes

if your spouse was a nonresident alien at any

Rent time during the year and you don’t choose to



Utility charges treat your nonresident spouse as a resident alien. However, your spouse isn't a qualifying Repairs/Maintenance person for head of household purposes. You



Property insurance must have another qualifying person and meet the other tests to be eligible to file as head of Food eaten in the home household.

Other household expenses Choice to treat spouse as resident. You

Totals $ $ are considered married if you choose to treat

Minus total amount you paid your spouse as a resident alien. See chapter 1 ( )

of Pub. 519.

Amount others paid $

If the total amount you paid is more than the amount others paid, you meet the Keeping Up a Home

requirement of paying more than half of the cost of keeping up the home. To qualify for head of household status, you

for more information on filing a return for a dece- considered unmarried on the last day of the tax up a home for the year. You can determine must pay more than half of the cost of keeping dent. year if you meet all of the following tests. whether you paid more than half of the cost of



You may be able to file as head of household if hold filing status. mortgage interest, real estate taxes, insurance you meet all of the following requirements. 2. You paid more than half of the cost of on the home, repairs, utilities, and food eaten in 1. You are unmarried or considered unmar-keeping up your home for the tax year. the home. ried on the last day of the year. See Marital 3. Your spouse didn't live in your home during Costs you don’t include. Don’t include the Status , earlier, and Considered Unmar-the last 6 months of the tax year. Your Head of Household 1. You file a separate return. A separate re- keeping up a home by using Worksheet 2-1. turn includes a return claiming married fil- Costs you include. Include in the cost of ing separately, single, or head of house- keeping up a home expenses, such as rent,



2. You paid more than half of the cost of ried costs of clothing, education, medical treatment, , later. spouse is considered to live in your home vacations, life insurance, or transportation. Also even if your spouse is temporarily absent don’t include the value of your services or those keeping up a home for the year. due to special circumstances. See Tempo- of a member of your household.



3. A qualifying person lived with you in the rary absences under Qualifying Person, home for more than half the year (except later. Qualifying Person for temporary absences, such as school).

4. Your home was the main home of your

However, if the qualifying person is your child, stepchild, or foster child for more See Table 2-1 to see who is a qualifying person.

dependent parent, your dependent parent than half the year. (See Home of qualifying Any person not described in Table 2-1 isn't a

doesn't have to live with you. See Special person under Qualifying Person, later, for qualifying person.

rule for parent, later, under Qualifying Per- rules applying to a child's birth, death, or son. Example 1—Child. Your unmarried child temporary absence during the year.)

If you qualify to file as head of house- 5. You must be able to claim the child as a lived with you all year and was 18 years old at

TIP hold, your tax rate will usually be lower dependent. However, you meet this test if the end of the year. Your child didn't provide

than the rates for single or married fil- you can’t claim the child as a dependent more than half of their own support and doesn't



standard deduction than if you file as single or claim the child using the rules described in child (see Qualifying Child in chapter 3) and, married filing separately. Children of divorced or separated parents because this child is single, this is your qualify-(or parents who live apart) under Qualify-ing person for head of household purposes. ing separately. You will also receive a higher only because the noncustodial parent can else. As a result, this child is your qualifying meet the tests to be a qualifying child of anyone



status by checking the “Head of household” box Support Test for Children of Divorced or Example 2—Child who isn't qualifying on the Filing Status line near the top of Form How to file. Indicate your choice of this filing ing Child in chapter 3, or referred to in

1040 or 1040-SR. If the child who qualifies you Separated Parents (or Parents Who Live person. The facts are the same as in Exam-

for this filing status isn't claimed as your de- Apart) under Qualifying Relative in chap- ple 1, except your child was 25 years old at the

pendent in the Dependents section of Form ter 3. The general rules for claiming a child end of the year and your child’s gross income

1040 or 1040-SR, enter the child's name in the as a dependent are explained in chapter 3. was $6,000. Because your child doesn't meet



entry space below the filing status checkboxes. You may be considered unmarried for the the age test (explained under Qualifying Child in chapter 3), your child isn't your qualifying child. purpose of using head of household status but Use the Head of a household column of the Tax Because the child doesn't meet the gross in- not for other purposes, such as claiming the Table, or Section D of the Tax Computation come test (explained under Qualifying Relative EIC. Different tests apply depending on the tax Worksheet, to figure your tax. in chapter 3), the child isn't your qualifying rela- benefit you claim. tive. As a result, this child isn't your qualifying Considered Unmarried person for head of household purposes.

To qualify for head of household status, you Example 3—Friend. Your friend lived with

must be either unmarried or considered you all year. Even though your friend may be

unmarried on the last day of the year. You are your qualifying relative if the gross income and

24 Chapter 2 Filing Status Publication 17 (2025) Table 2-1. Who Is a Qualifying Person Qualifying You To File as Head of Household?1





Caution. See the text of this chapter 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, the child is single a qualifying person, whether or

daughter, or grandchild who lived with not the child meets the Citizen or

you more than half the year and meets Resident Test in chapter 3.

certain other tests)2 the child is married and you can claim the a qualifying person.

child as a dependent

the child is married and you can’t claim the not a qualifying person.3 child as a dependent

qualifying relative4 who is your father or you can claim your parent as a dependent5 a qualifying person.6

mother you can’t claim your parent as a dependent not a qualifying person.

qualifying relative4 other than your father your relative lived with you more than half a qualifying person. or mother (such as a grandparent, the year, and your relative is related to you in

brother, or sister who meets certain one of the ways listed under Relatives who

tests) don’t have to live with you in chapter 3 and

you can claim your relative as a dependent5

your relative didn't live with you more than not a qualifying person. half the year

your relative isn't related to you in one of the not a qualifying person.

ways listed under Relatives who don’t have

to live with you in chapter 3 and is your qualifying relative only because your relative

lived with you all year as a member of your

household

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 in chapter 3. 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 in chapter 3. 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 in chapter 3.

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 in chapter 3.

6 See Special rule for parent under Qualifying Person, earlier.

support tests (explained in chapter 3) are met, as head of household even if your parent circumstances, such as illness, education, busi-your friend isn't your qualifying person for head doesn't live with you. However, you must be ness, vacation, military service, or detention in a of household purposes because your friend isn't able to claim your parent as a dependent. Also, juvenile facility. It must be reasonable to as-related to you in one of the ways listed under you must pay more than half of the cost of keep- sume the absent person will return to the home

Relatives who don’t have to live with you in ing up a home that was the main home for the after the temporary absence. You must continue





chapter 3. See Table 2-1. entire year for your parent. to keep up the home during the absence.


If you pay more than half of the cost of keep-

Example 4—Friend's child. The facts are Adopted child or foster child. You may be ing your parent in a rest home or home for the

the same as in Example 3, except your friend's eligible to file as head of household if the per- elderly, that counts as paying more than half of

10-year-old child also lived with you all year. the cost of keeping up your parent's main home. son who qualifies you for this filing status was Your friend’s child isn't your qualifying child and, an adopted child or foster child. For more infor-

because the child is your friend's qualifying Death or birth. You may be eligible to file as mation, see Pub. 501. child, your friend’s child isn't your qualifying rel- head of household even if the individual who



ter 3). As a result, your friend’s child isn't your as head of household even if the child who is during the year. If the individual is your qualify- your qualifying person has been kidnapped. For ative (see Kidnapped child. You may be eligible to file Not a Qualifying Child Test in chap- qualifies you for this filing status is born or dies

qualifying person for head of household purpo- ing child, the child must have lived with you for ses. more information, see Pub. 501. more than half the part of the year the child was

Home of qualifying person. Generally, the 501 for more information. alive. If the individual is anyone else, see Pub. Qualifying Surviving

than half the year. Temporary absences. You and your quali- Spouse qualifying person must live with you for more

fying person are considered to live together

Special rule for parent. If your qualifying even if one or both of you are temporarily ab- If your spouse died in 2025, you can use mar-

person is your parent, you may be eligible to file sent from your home due to special ried filing jointly as your filing status for 2025 if

Publication 17 (2025) Chapter 2 Filing Status 25 you otherwise qualify to use that status. The file as qualifying surviving spouse. After 2025, Dependents year of death is the last year for which you can you can file as head of household if you qualify.





ried Filing Jointly Death or birth. You may be eligible to file as a file jointly with your deceased spouse. See Mar-


, earlier. The term “dependent” means: qualifying surviving spouse if the child who

You may be eligible to use qualifying surviv- qualifies you for this filing status is born or dies • A qualifying child, or



ing spouse as your filing status for 2 years fol- during the year. You must have provided more • A qualifying relative. lowing the year your spouse died. For example, than half of the cost of keeping up a home that if your spouse died in 2024, and you haven't re-The terms “ qualifying child” and “qualifying was the child's main home during the entire part married, you may be able to use this filing status of the year the child was alive. relative ” are defined later.

for 2025 and 2026. All the requirements for claiming a depend- Adopted child. You may be eligible to file as a



doesn't entitle you to file a joint return. people work for you, you can’t claim them as adoption by you in 2025. The child is consid- dependents. ered to have lived with you for all of 2025 if your How to file. Indicate your choice of this filing main home was this child’s main home for the Child tax credit. You may be entitled to a child status by checking the “Qualifying surviving entire time since this child was adopted or tax credit for each qualifying child who was un- spouse” box on the Filing Status line near the turn tax rates and the highest standard deduc- qualifies you for this filing status was adopted in Housekeepers, maids, or servants. If these tion amount (if you don’t itemize deductions). It 2025 or was lawfully placed with you for legal This filing status entitles you to use joint re- qualifying surviving spouse if the child who ent are summarized in Table 3-1.

top of Form 1040 or 1040-SR. If the child who placed with you in 2025. der age 17 at the end of the year if you claimed



your dependent in the Dependents section of see chapter 14. a qualifying surviving spouse even if the child Credit for other dependents. You may be en-qualifies you for this filing status isn’t claimed as Kidnapped child. You may be eligible to file as that child as a dependent. For more information, Form 1040 or 1040-SR, enter the child’s name who qualifies you for this filing status has been in the entry space below the filing staus check- kidnapped. See Pub. 501 for more information. titled to a credit for other dependents for each

the Tax Table, or Section B of the Tax Computa- As mentioned earlier, the filing status boxes. Use the Married filing jointly column of qualifying child who does not qualify you for the

tion Worksheet, to figure your tax. qualifying surviving spouse is available child tax credit and for each qualifying relative. !

For more information, see chapter 14.

CAUTION for only 2 years following the year your

Eligibility rules. You are eligible to file your spouse died. Exceptions 2025 return as a qualifying surviving spouse if

you meet all of the following tests.

• Even if you have a qualifying child or qualifying You were entitled to file a joint return with relative, you can claim that person as a depend-



your spouse for the year your spouse died. ent only if these three tests are met. It doesn't matter whether you actually filed 1. a joint return. Dependent taxpayer test .

• Your spouse died in 2023 or 2024 and you 2. Joint return test. 3.



• You have a child or stepchild (not a foster These three tests are explained in detail child) whom you can claim as a dependent Dependents didn't remarry before the end of 2025. 3. Citizen or resident test.

or could claim as a dependent except that, here. for 2025:

a. The child had gross income of Dependent Taxpayer Test Introduction $5,200 or more, If you can be claimed as a dependent by an-



• pendent in the Dependents section on If the child isn't claimed as your de-b. The child filed a joint return, or other taxpayer, you can’t claim anyone else as a This chapter discusses the following topics. dependent. Even if you have a qualifying child c. You could be claimed as a depend- • Dependents—You can generally claim or qualifying relative, you can’t claim that person ent on someone else’s return. your qualifying child or qualifying relative as a dependent. as a dependent. If you are filing a joint return and your • Social security number (SSN) requirement spouse can be claimed as a dependent by an- Form 1040 or 1040-SR, enter the child's for dependents—You must list the SSN of other taxpayer, you and your spouse can’t claim name in the entry space below the filing any person you claim as a dependent. any dependents on your joint return. status checkboxes. If you don’t enter the How to claim dependents. On page 1 of your Exception. If you can be claimed as a depend- name, it will take us longer to process your Form 1040 or 1040-SR, enter the names of your ent by another taxpayer, you can claim some- return. dependents in the Dependents section. one else as a dependent if the person who can This child lived in your home all year, ex- claim you (or your spouse if filing a joint return) cept for temporary absences. See Tempo- as a dependent files a return only to claim a re- Useful Items rary absences , earlier, under Head of fund of income tax withheld or estimated tax You may want to see: Household. There are also exceptions, de- paid. scribed later, for a child who was born or Publication died during the year and for a kidnapped Joint Return Test child. 501 501 Dependents, Standard Deduction, You generally can’t claim a married person as a • You paid more than half of the cost of and Filing Information dependent if that person files a joint return. keeping up a home for the year. See Keep- 503 ing Up a Home , earlier, under Head of 503 Child and Dependent Care Expenses Exception. You can claim a person as a de-

Household. pendent who files a joint return if that person 526 526 Charitable Contributions and that person’s spouse file the joint return

you haven’t remarried. During 2024 and 2025 Form (and Instructions) Example. Your spouse died in 2023 and only to claim a refund of income tax withheld or

estimated tax paid.

you continued to keep up a home for you and 2120 2120 Multiple Support Declaration your child who lives with you and whom you can Example 1—Child files joint return. You

claim as a dependent. For 2023, you were enti- 8332 8332 Release/Revocation of Release of supported your 18-year-old child who lived with tled to file a joint return for you and your Claim to Exemption for Child by you all year while your child’s spouse was in the deceased spouse. For 2024 and 2025, you can Custodial Parent Armed Forces. Your child’s spouse earned

26 Chapter 3 Dependents Publication 17 (2025) Table 3-1. 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 chapter.

• 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, U.S. resident alien, 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, 1. The person can’t be your qualifying child or the

brother, sister, half brother, half sister, stepbrother, stepsister, qualifying child of any other taxpayer. or a descendant of any of them.

2. The person either (a) must be related to you in one of

2. The child must be (a) under age 19 at the end of the year and the ways listed under Relatives who don’t have to live

younger than you (or your spouse if filing jointly); (b) under age with you, or (b) must live with you all year as a member 24 at the end of the year, a student, and younger than you (or of your household2 (and your relationship must not your spouse if filing jointly); or (c) any age if permanently and violate local law). totally disabled.

3. The person's gross income for the year must be less

3. The child must have lived with you for more than half of the than $5,200.3

year.2

4. You must provide more than half of the person's total

4. The child must not have provided more than half of the child’s support for the year.4

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 get a refund of income tax

withheld 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 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.

$35,000 for the year. The couple files a joint re- disqualified from claiming each of them as a de- American opportunity credit, they aren't filing it turn. You can’t claim your child as a dependent. pendent just because they file a joint return. You only to get a refund of income tax withheld or

can claim each of them as a dependent if all the estimated tax paid. The exception to the joint re-

Example 2—Child files joint return only other tests to do so are met. turn test doesn't apply, so you can’t claim either

as claim for refund of withheld tax. Your of them as a dependent. 18-year-old child and your child’s 17-year-old Example 3—Child files joint return to



spouse had $800 of wages from part-time jobs claim American opportunity credit. The Citizen or Resident Test and no other income. They lived with you all facts are the same as in Example 2, except no You generally can’t claim a person as a depend-year. Neither is required to file a tax return. They taxes were taken out of your child’s pay or your ent unless that person is a U.S. citizen, U.S. res-don’t have a child. Taxes were taken out of their child’s spouse’s pay. However, they file a joint ident alien, U.S. national, or a resident of Can-pay, so they filed a joint return only to get a re-return to claim an American opportunity credit ada or Mexico. However, there is an exception fund of the withheld taxes. The exception to the of $124 and get a refund of that amount. Be-for certain adopted children, as explained next. joint return test applies, so you aren't cause they filed a joint return claiming the



Publication 17 (2025) Chapter 3 Dependents 27 Exception for adopted child. If you are a U.S. Foster child. A foster child is an individual who school offering courses only through the Inter-citizen or U.S. national who has legally adopted is placed with you by an authorized placement net doesn’t count as a school. a child who isn't a U.S. citizen, U.S. resident agency or by judgment, decree, or other order alien, or U.S. national, this test is met if the child of any court of competent jurisdiction. Vocational high school students. Stu-lived with you as a member of your household dents who work on “co-op” jobs in private indus-



all year. This exception also applies if the child try as a part of a school's regular course of Age Test was lawfully placed with you for legal adoption classroom and practical training are considered To meet this test, a child must be: and the child lived with you for the rest of the full-time students. • year after placement. Under age 19 at the end of the year and Permanently and totally disabled. Your child younger than you (or your spouse if filing Child's place of residence. Children are usu- is permanently and totally disabled if both of the jointly); ally citizens or residents of the country of their following apply. • parents. A student under age 24 at the end of the • Your child can’t engage in any substantial If you were a U.S. citizen when your child year and younger than you (or your spouse gainful activity because of a physical or was born, the child may be a U.S. citizen and if filing jointly); or mental condition. meet this test even if the other parent was a • Permanently and totally disabled at any • A doctor determines the condition has las- nonresident alien and the child was born in a time during the year, regardless of age. ted or can be expected to last continuously foreign country. for at least a year or can lead to death. Example. Your child turned 19 on Decem- Foreign students' place of residence. For- ber 10. Unless this child was permanently and eign students brought to this country under a totally disabled or a student, this child doesn't Residency Test qualified international education exchange pro- meet the age test because, at the end of the gram and placed in American homes for a tem- To meet this test, your child must have lived with year, this child wasn't under age 19. porary period generally aren't U.S. residents you for more than half the year. There are ex- ceptions for temporary absences, children who and don’t meet this test. You can’t claim them Child must be younger than you or spouse. as dependents. However, if you provided a were born or died during the year, adopted or To be your qualifying child, a child who isn't per- home for a foreign student, you may be able to foster children, kidnapped children, and chil- manently and totally disabled must be younger take a charitable contribution deduction. See dren of divorced or separated parents. than you. However, if you are married filing Expenses Paid for Student Living With You in jointly, the child must be younger than you or Temporary absences. Your child is consid- Pub. 526. your spouse but doesn't have to be younger ered to have lived with you during periods of than both of you. U.S. national. A U.S. national is an individual time when one of you, or both, is temporarily absent due to special circumstances such as: who, although not a U.S. citizen, owes their alle- Example 1—Child not younger than you giance to the United States. U.S. nationals in- • Illness, or spouse. Your 23-year-old sibling, who is a clude American Samoans and Northern Ma- student and unmarried, lives with you and your • Education, riana Islanders who chose to become U.S. spouse, who provide more than half of your sib- nationals instead of U.S. citizens. • Business, ling’s support. Your sibling isn't disabled. Both • you and your spouse are 21 years old, and you Vacation, Qualifying Child file a joint return. Your sibling isn't your qualify- • Military service, or ing child because your sibling isn't younger than Five tests must be met for a child to be your you or your spouse. • Detention in a juvenile facility. qualifying child. The five tests are: Death or birth of child. A child who was born Example 2—Child younger than your 1. Relationship , or died during the year is treated as having lived spouse but not younger than you. The facts with you more than half of the year if your home 2. Age , are the same as in Example 1, except your was the child's home more than half of the time spouse is 25 years old. Because your sibling is 3. Residency , the child was alive during the year. The same is younger than your spouse, and you and your true if the child lived with you more than half the 4. Support , and spouse are filing a joint return, your sibling is year except for any required hospital stay follow- your qualifying child, even though your sibling 5. Joint return . ing birth. isn't younger than you. These tests are explained next. Student defined. To qualify as a student, your Child born alive. You may be able to claim as a dependent a child born alive during the If a child meets the five tests to be the child must be, during some part of each of any 5 qualifying child of more than one per- ! calendar months of the year: year, even if the child lived only for a moment. son, there are rules you must use to CAUTION State or local law must treat the child as having 1. A full-time student at a school that has a determine which person can actually treat the been born alive. There must be proof of a live regular teaching staff and course of study, child as a qualifying child. See Qualifying Child birth shown by an official document, such as a and a regularly enrolled student body at of More Than One Person , later. birth certificate. The child must be your qualify- the school; or ing child or qualifying relative, and all the other

Relationship Test 2. A student taking a full-time, on-farm train- tests to claim the child as a dependent must be

ing course given by a school described in met.



To meet this test, a child must be: (1), or by a state, county, or local govern-• Your son, daughter, stepchild, or foster ment agency. Stillborn child. You can’t claim a stillborn child as a dependent.

child, or a descendant (for example, your The 5 calendar months don’t have to be con-



• Your brother, sister, half brother, half sister, adopted child or foster child as meeting the res- Full-time student. A full-time student is a idency test as follows if you adopted the child in stepbrother, or stepsister, or a descendant grandchild) of any of them; or Adopted or foster child. You can treat your secutive.

(for example, your niece or nephew) of any student who is enrolled for the number of hours 2025, the child was lawfully placed with you for

of them. or courses the school considers to be full-time legal adoption by you in 2025, or the child was

attendance. an eligible foster child placed with you during

Adopted child. An adopted child is always 2025. This child is considered to have lived with School defined. A school can be an ele-

treated as your own child. The term “adopted you for more than half of 2025 if your main mentary school; a junior or senior high school; a

child” includes a child who was lawfully placed home was this child’s main home for more than college; a university; or a technical, trade, or

with you for legal adoption. half the time since this child was adopted or mechanical school. However, an on-the-job

training course, correspondence school, or placed with you in 2025.

28 Chapter 3 Dependents Publication 17 (2025) Kidnapped child. You may be able to treat parent won’t claim the child as a dependent for long the child would have lived with each parent your child as meeting the residency test even if 2025, this doesn’t allow the noncustodial parent if the child had not attended summer camp. the child has been kidnapped. See Pub. 501 for to claim the child as a qualifying child for the details. earned income credit. The custodial parent or Example 3—Child lived same number of Children of divorced or separated parents another taxpayer, if eligible, can claim the child nights with each parent. Your child lived with

(or parents who live apart). In most cases, for the earned income credit. you 180 nights during the year and lived the

because of the residency test, a child of di- Custodial parent and noncustodial pa- same number of nights with the child’s other pa-vorced or separated parents is the qualifying rent. The custodial parent is the parent with rent, your ex-spouse. Your AGI is $40,000. Your child of the custodial parent. However, the child whom the child lived for the greater number of ex-spouse's AGI is $25,000. You are treated as will be treated as the qualifying child of the non- nights during the year. The other parent is the your child's custodial parent because you have custodial parent if all four of the following state- noncustodial parent. the higher AGI. ments are true. If the parents divorced or separated during Example 4—Child is at parent’s home

1. The parents: the year and the child lived with both parents but with other parent. Your child normally

a. Are divorced or legally separated un- before the separation, the custodial parent is lives with you during the week and with the

der a decree of divorce or separate the one with whom the child lived for the greater child’s other parent, your ex-spouse, every other

maintenance; number of nights during the rest of the year. weekend. You become ill and are hospitalized.

A child is treated as living with a parent for a Your ex-spouse lives in your home with your

b. Are separated under a written separa- night if the child sleeps: child for 10 consecutive days while you are in



2. The child received over half of the child’s c. Lived apart at all times during the last tion agreement; or the hospital. Your child is treated as living with • At that parent's home, whether or not the you during this 10-day period because your parent is present; or child was living in your home. 6 months of the year, whether or not • In the company of the parent, when the they are or were married. child doesn't sleep at a parent's home (for Example 5—Child emancipated in May. example, the parent and child are on vaca- Your child turned 18 in May 2025 and became tion together). support for the year from the parents. emancipated under the law of the state where



the noncustodial parent can: 3. The child is in the custody of one or both your child lives. As a result, your child isn't con- Equal number of nights. If the child lived sidered in the custody of either parent for more parents for more than half of the year. with each parent for an equal number of nights than half of the year. The special rule for chil- during the year, the custodial parent is the pa- 4. Either of the following statements is true. dren of divorced or separated parents doesn't rent with the higher adjusted gross income apply. a. The custodial parent signs a written (AGI). declaration, discussed later, that they Example 6—Child emancipated in Au- won't claim the child as a dependent December 31. The night of December 31 is gust. Your child lives with you from January 1, for the year, and the noncustodial pa- treated as part of the year in which the night be- 2025, until May 31, 2025, and lives with the rent attaches this written declaration gins. For example, the night of December 31, child’s other parent, your ex-spouse, from June to their return. (If the decree or agree- 2025, is treated as part of 2025. 1, 2025, through the end of the year. Your child ment went into effect after 1984 and turns 18 and is emancipated under state law on Emancipated child. If a child is emancipa- before 2009, see Post-1984 and August 1, 2025. Because your child is treated ted under state law, the child is treated as not pre-2009 divorce decree or separa- living with either parent. See Examples 5 and 6 . as not living with either parent beginning on Au- tion agreement , later. If the decree or gust 1, your child is treated as living with you agreement went into effect after 2008, Absences. If a child wasn't with either pa- the greater number of nights in 2025. You are see Post-2008 divorce decree or sep- rent on a particular night (because, for example, the custodial parent. aration agreement , later.) the child was staying at a friend's house), the Written declaration. The custodial parent b. A pre-1985 decree of divorce or sepa- child is treated as living with the parent with must use either Form 8332 or a similar state- rate maintenance or written separa- whom the child normally would have lived for ment (containing the same information required tion agreement that applies to 2025 that night, except for the absence. But if it can’t by the form) to make the written declaration to states that the noncustodial parent be determined with which parent the child nor- release a claim to an exemption for a child to can claim the child as a dependent, mally would have lived or if the child wouldn’t the noncustodial parent. Although the exemp- the decree or agreement wasn't have lived with either parent that night, the child tion amount is zero for tax year 2025, this re- changed after 1984 to say the non- is treated as not living with either parent that lease allows the noncustodial parent to claim custodial parent can’t claim the child night. the child tax credit, additional child tax credit, as a dependent, and the noncustodial and credit for other dependents, if applicable, parent provides at least $600 for the Parent works at night. If, due to a parent's for the child. The noncustodial parent must at- child's support during the year. nighttime work schedule, a child lives for a tach a copy of the form or statement to their tax greater number of days, but not nights, with the If statements (1) through (4) are all true, only return. parent who works at night, that parent is treated The release can be for 1 year, for a number as the custodial parent. On a school day, the of specified years (for example, alternate • Claim the child as a dependent; and child is treated as living at the primary resi- years), or for all future years, as specified in the dence registered with the school. • Claim the child as a qualifying child for the declaration. child tax credit, the credit for other depend- Example 1—Child lived with one parent Post-1984 and pre-2009 divorce decree ents, or the additional child tax credit. for a greater number of nights. You and your or separation agreement. If the divorce de- However, this doesn’t allow the noncustodial child’s other parent are divorced. In 2025, your cree or separation agreement went into effect parent to claim head of household filing status, child lived with you 210 nights and with the after 1984 and before 2009, the noncustodial the credit for child and dependent care expen- other parent 155 nights. You are the custodial parent may be able to attach certain pages from ses, the exclusion for dependent care benefits, parent. the decree or agreement instead of Form 8332. or the earned income credit. See Applying the The decree or agreement must state all three of tiebreaker rules to divorced or separated pa- Example 2—Child is away at camp. In the following. rents (or parents who live apart) , later. 2025, your child lives with each parent for alter- nate weeks. In the summer, your child spends 6 1. The noncustodial parent can claim the child as a dependent without regard to any Example—Earned income credit. Even if weeks at summer camp. During those 6 weeks,

statements (1) through (4) are all true and the your child is treated as living with you for 3 condition, such as payment of support. custodial parent signs Form 8332 or a weeks and with your child’s other parent, your substantially similar statement that the custodial ex-spouse, for 3 weeks because this is how

Publication 17 (2025) Chapter 3 Dependents 29

2. The custodial parent won't claim the child child provided $6,000. Your child provided more spouse had $800 of wages from part-time jobs

as a dependent for the year. than half their own support. The child isn't your and no other income. They lived with you all



the following pages of the decree or agreement The noncustodial parent must attach all of joint return test applies, so this child may be ered support provided by the agency. Similarly, your qualifying child if all the other tests are met. payments you receive for the support of a foster to their tax return. child from a state or county are considered sup- Example 3—Child files joint return to • The cover page (write the other parent's port provided by the state or county. claim American opportunity credit. The SSN on this page). If you aren't in the trade or business of pro- facts are the same as in Example 2, except no viding foster care and your unreimbursed • The pages that include all of the informa- taxes were taken out of either spouse’s pay. out-of-pocket expenses in caring for a foster tion identified in items (1) through (3) 3. The years for which the noncustodial pa- don’t have a child. Taxes were taken out of their qualifying child. year. Neither is required to file a tax return. They rent, rather than the custodial parent, can Foster care payments and expenses. Pay- pay so they filed a joint return only to get a re-claim the child as a dependent. ments you receive for the support of a foster fund of the withheld taxes. The exception to the child from a child placement agency are consid-

above. child were mainly to benefit an organization However, they file a joint return to claim an



agreement. The noncustodial parent can’t at-Post-2008 divorce decree or separation you provided. For more information about the tax withheld or estimated tax paid. The excep-deduction for charitable contributions, see Pub. tion to the joint return test doesn't apply, so this 526. If your unreimbursed expenses aren't de-tach pages from the decree or agreement in-child isn't your qualifying child. ductible as charitable contributions, they may stead of Form 8332 if the decree or agreement qualify as support you provided. went into effect after 2008. The custodial parent Qualifying Child of More Than One If you are in the trade or business of provid-must sign either Form 8332 or a similar state-ing foster care, your unreimbursed expenses Person ment the only purpose of which is to release the • The signature page with the other parent's butions, the expenses are deductible as charita- return claiming the American opportunity credit, signature and the date of the agreement. ble contributions but aren't considered support they aren’t filing it only to get a refund of income qualified to receive deductible charitable contri- refund of that amount. Because they filed a joint American opportunity credit of $124 and get a

custodial parent's claim to an exemption for a aren't considered support provided by you. If your qualifying child isn't a qualifying



release the custodial parent's claim to the child ried couple, the Smiths, for the last 3 months of read about it. This is also true if your qualifying the year. The Smiths cared for the foster child without any conditions. For example, the re-child isn't a qualifying child of anyone else ex-because they wanted to adopt the child (al-lease must not depend on the noncustodial pa-copy to their return. The form or statement must Example 1. A foster child lived with a mar- apply to you and you don’t need to child, and the noncustodial parent must attach a TIP child of anyone else, this topic doesn't rent paying support. though the child had not been placed with them cept your spouse with whom you plan to file a

joint return.



CAUTION ! agency that placed the foster child in their child of the noncustodial parent under filed with a return in an earlier year. ! home. The Smiths' unreimbursed expenses CAUTION the rules for children of divorced or aren't deductible as charitable contributions but separated parents (or parents who live apart) Revocation of release of claim to an ex-The noncustodial parent must attach child as a trade or business or to benefit the If a child is treated as the qualifying the required information even if it was for adoption). They didn't care for the foster

emption. The custodial parent can revoke a re- are considered support they provided for the described earlier, see Applying the tiebreaker

lease of claim to an exemption. For the revoca- foster child. rules to divorced or separated parents (or pa-



tion to be effective for 2025, the custodial parent rents who live apart), later. Example 2. You provided $3,000 toward must have given (or made reasonable efforts to your 10-year-old foster child's support for the Sometimes, a child meets the relationship, give) written notice of the revocation to the non-year. The state government provided $4,000, age, residency, support, and joint return tests to custodial parent in 2024 or earlier. The custo-which is considered support provided by the be a qualifying child of more than one person. dial parent can use Part III of Form 8332 for this state, not by the child. See Support provided by Although the child is a qualifying child of each of purpose and must attach a copy of the revoca-the state (welfare, food stamps, housing, etc.) , these persons, generally only one person can tion to their return for each tax year the custo-later. Your foster child didn't provide more than actually treat the child as a qualifying child to dial parent claims the child as a dependent as a half of their own support for the year. take all of the following tax benefits (provided result of the revocation. the person is eligible for each benefit). Scholarships. A scholarship received by a Remarried parent. If you remarry, the sup-child who is a student isn't taken into account in 1. The child tax credit, credit for other de-port provided by your new spouse is treated as determining whether the child provided more pendents, or additional child tax credit. provided by you. than half of their own support. 2. Head of household filing status.



rule for divorced or separated parents also ap- 3. The credit for child and dependent care Parents who never married. This special Joint Return Test (To Be a expenses.



lived apart at all times during the last 6 months 4. The exclusion from income for dependent To meet this test, the child can’t file a joint return of the year. care benefits. plies to parents who never married and who Qualifying Child)

for the year.

Support Test (To Be a Qualifying Exception. An exception to the joint return test 5. The earned income credit.



Child) applies if your child and the child’s spouse file a The other person can’t take any of these joint return only to claim a refund of income tax benefits based on this qualifying child. In other To meet this test, the child can’t have provided withheld or estimated tax paid. words, you and the other person can’t agree to more than half of the child’s own support for the divide these benefits between you. year. Example 1—Child files joint return. You Tiebreaker rules. To determine which person This test is different from the support test to supported your 18-year-old child who lived with can treat the child as a qualifying child to claim be a qualifying relative, which is described later. you all year while your child’s spouse was in the these five tax benefits, the following tiebreaker However, to see what is or isn't support, see Armed Forces. Your child’s spouse earned rules apply. For purposes of these tiebreaker Support Test (To Be a Qualifying Relative) , later. $35,000 for the year. The couple files a joint re- rules, the term “parent” means a biological or If you aren't sure whether a child provided more turn so this child isn't your qualifying child.

than half of their own support, you may find

Worksheet 3-1 helpful. Example 2—Child files joint return only

as a claim for refund of withheld tax. Your

Example. You provided $4,000 toward your 18-year-old child and your child’s 17-year-old

16-year-old child's support for the year and the

30 Chapter 3 Dependents Publication 17 (2025) Worksheet 3-1. Worksheet for Determining Support 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 parents who live apart), or the special rule for kidnapped children. See Multiple Support Agreement

or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart), or Kidnapped child under Qualifying Relative.



Publication 17 (2025) Chapter 3 Dependents 31 adoptive parent of an individual. It doesn’t in- Example 3—Two persons claim same return. You also can't take the credit for child clude a stepparent or foster parent unless that child. The facts are the same as in Example 1, and dependent care expenses because your fil-person has adopted the individual. except you and your parent both claim Jordan ing status is married filing separately and you



• as a qualifying child. In this case, you, as the and your spouse didn't live apart for the last 6 If only one of the persons is the child's pa- child's parent, will be the only one allowed to months of 2025. rent, the child is treated as the qualifying claim the child as a qualifying child. The IRS will child of the parent. disallow your parent's claim to the five tax bene- Example 7—Separated parents claim • If the parents file a joint return together and fits listed earlier based on Jordan. However, same child. The facts are the same as in Ex- can claim the child as a qualifying child, your parent may qualify for the earned income ample 6, except you and your spouse both the child is treated as the qualifying child of credit as a taxpayer without a qualifying child. claim your child as a qualifying child. In this the parents. case, only your spouse will be allowed to treat



• Example 4—Qualifying children split be- your child as a qualifying child. This is because, If the parents don’t file a joint return to- tween two persons. The facts are the same during 2025, the child lived with your spouse gether but both parents claim the child as a as in Example 1, except you also have two other longer than with you. If you claimed the child tax qualifying child, the IRS will treat the child young children who are qualifying children of credit for your child, the IRS will disallow your as the qualifying child of the parent with both you and your parent. Only one of you can claim to the child tax credit. If you don’t have an- whom the child lived for the longer period claim each child. However, if your parent's AGI other qualifying child or dependent, the IRS will of time during the year. If the child lived is higher than yours, you can allow your parent also disallow your claim to the exclusion for de- with each parent for the same amount of to claim one or more of the children. For exam- pendent care benefits. In addition, because you time, the IRS will treat the child as the qual- ple, if you claim one child, your parent can claim and your spouse didn't live apart for the last 6 ifying child of the parent who had the the other two. months of the year, your spouse can’t claim higher AGI for the year. head of household filing status. As a result, your • If no parent can claim the child as a qualify- Example 5—Taxpayer who is a qualify- spouse’s filing status is married filing separately. ing child, the child is treated as the qualify- ing child. The facts are the same as in Exam- Your spouse can’t claim the earned income ing child of the person who had the highest ple 1, except you are only 18 years old and credit because your spouse doesn’t meet the AGI for the year. didn't provide more than half of your own sup- requirements to claim the earned income credit

• port for the year. This means you are your pa-If a parent can claim the child as a qualify- for certain separated spouses. You and your

ing child but no parent does so claim the rent's qualifying child. If your parent can claim spouse didn't live apart for the last 6 months of child, the child is treated as the qualifying you as a dependent, then you can’t claim your 2025, and, while you did live apart at the end of

child of the person who had the highest child as a dependent because of the Depend- 2025, you aren't legally separated under a writ-

AGI for the year, but only if that person's ent Taxpayer Test, explained earlier, unless your ten separation agreement or decree of separate AGI is higher than the highest AGI of any of parent files a return only to claim a refund of in- maintenance. Therefore, your spouse doesn't the child's parents who can claim the child. come tax withheld or estimated tax paid. meet the requirements to take the earned in-

Subject to these tiebreaker rules, you and Example 6—Separated parents. You, come credit as a separated spouse who isn’t fil-

the other person may be able to choose which your spouse, and your 10-year-old child all lived ing a joint return. Your spouse also can't take of you claims the child as a qualifying child. in the United States for all of 2025. On August the credit for child and dependent care expen-

ses because your spouse’s filing status is mar-

You may be able to qualify for the 1, 2025, your spouse moved out of the house- ried filing separately and you and your spouse

TIP hold. In August and September, your child lived earned income credit under the rules didn't live apart for the last 6 months of 2025.

for taxpayers without a qualifying child with you. For the rest of the year, your child lived

if you have a qualifying child for the earned in- with your spouse, the child's other parent. Your Example 8—Unmarried parents. You,

come credit who is claimed as a qualifying child child is a qualifying child of both you and your your 5-year-old child, Marley, and Marley’s other by another taxpayer. For more information, see spouse because your child lived with each of parent lived together in the United States all Pub. 596. you for more than half the year and because year. You and Marley’s other parent aren't mar-

your child met the relationship, age, support, ried. Marley is a qualifying child of both you and

Example 1—Child lived with parent and and joint return tests for both of you. At the end the other parent because Marley meets the rela-

grandparent. You and your 3-year-old child of the year, you and your spouse still weren't di- tionship, age, residency, support, and joint re-

Jordan lived with your parent all year. You are vorced, legally separated, or separated under a turn tests for both you and the other parent.



$9,000. Your parent's AGI is $15,000. Your is $14,000. The other parent agrees to let you parents who live apart) doesn't apply. claim Marley as a qualifying child. This means child’s other parent didn't live with you or your 25 years old and unmarried, and your AGI is children of divorced or separated parents (or written separation agreement, so the rule for Your AGI is $12,000 and the other parent’s AGI

child. You haven't signed Form 8332 (or a simi- You and your spouse will file separate re- you can claim Marley as a qualifying child for



your parent because Jordan meets the relation-Jordan is a qualifying child of both you and tus, the credit for child and dependent care ex- spouse doesn't claim your child as a qualifying penses, the exclusion for dependent care bene- lar statement). child as a qualifying child. This means, if your turns. Your spouse agrees to let you treat your the child tax credit, head of household filing sta-

ship, age, residency, support, and joint return child, you can claim this child as a qualifying fits, and the earned income credit, if you qualify



only one of you can claim Jordan. Your child parent doesn't claim Marley as a qualifying child of those tax benefits). However, you can’t claim for any of those tax benefits). isn't a qualifying child of anyone else, including tests for both you and your parent. However, dependent care benefits (if you qualify for each child for the child tax credit and exclusion for for each of those tax benefits (and if the other

Jordan’s other parent. You agree to let your pa- and your spouse didn't live apart for the last 6 head of household filing status because you rent claim Jordan. This means your parent can months of the year. As a result, your filing status Example 9—Unmarried parents claim claim Jordan as a qualifying child for all of the is married filing separately, so you can’t claim same child. The facts are the same as in Ex-five tax benefits listed earlier, if your parent the earned income credit because you don’t ample 8, except you and Marley’s other parent qualifies for each of those benefits (and if you meet the requirements for certain separated both claim Marley as a qualifying child. In this don’t claim Jordan as a qualifying child for any spouses to claim the earned income credit case, only the other parent will be allowed to of those tax benefits). when they don’t file a joint return. You and your treat Marley as a qualifying child. This is be-cause the other parent’s AGI, $14,000, is more



grandparent. The facts are the same as in Ex- tax credit for Marley, the IRS will disallow your 2025, you aren't legally separated under a writ- claim to this credit. If you don’t have another ample 1, except your AGI is $18,000. Because Example 2—Parent has higher AGI than 2025, and while you did live apart at the end of spouse didn't live apart for the last 6 months of than your AGI, $12,000. If you claimed the child

your parent's AGI isn't higher than yours, your maintenance. Therefore, you don't meet the re-ten separation agreement or decree of separate qualifying child or dependent, the IRS will also

parent can’t claim Jordan. Only you can claim quirements to take the earned income credit as disallow your claim to head of household filing Jordan. status, the credit for child and dependent care a separated spouse who is not filing a joint expenses, and the exclusion for dependent care

32 Chapter 3 Dependents Publication 17 (2025) benefits. However, you may be able to claim the for head of household filing status and the Your grandchild isn’t your qualifying child be-earned income credit as a taxpayer without a earned income credit if your parent qualifies for cause the residency test isn’t met. Your grand-qualifying child. each and if you don’t claim Kody as a qualifying child may be your qualifying relative if the gross



rent. You and your sibling’s child, Reid, lived Example 10—Child didn't live with a pa- claim head of household filing status because Child of person not required to file a return. child for the earned income credit. (You can’t income test and the support test are met.

with your parent all year. You are 25 years old, A child isn't the qualifying child of any other tax- your parent paid the entire cost of keeping up



$15,000. Reid’s parents file jointly, have an AGI income credit as a taxpayer without a qualifying tive if the child's parent (or other person for child. whom the child is defined as a qualifying child) and your AGI is $9,300. Your parent’s AGI is payer and so may qualify as your qualifying rela- the home.) You may be able to claim the earned

Reid. Reid is a qualifying child of both you and isn't required to file an income tax return and ei- of less than $9,000, and don’t live with you or

your parent because Reid meets the relation- ther: Example 2. The facts are the same as in Example 1, except your AGI is $25,000 and

ship, age, residency, support, and joint return your parent's AGI is $21,000. Your parent can’t • Doesn't file an income tax return, or



tests for both you and your parent. However, claim Kody as a qualifying child for any purpose • Files a return only to get a refund of in-only your parent can treat Reid as a qualifying because your parent’s AGI isn't higher than come tax withheld or estimated tax paid. child. This is because your parent’s AGI, yours.



$15,000, is more than your AGI, $9,300. Example 1—Return not required. You Example 3. The facts are the same as in Applying the tiebreaker rules to divorced or support an unrelated friend and your friend’s Example 1, except you and your parent both separated parents (or parents who live 3-year-old child, who lived with you all year in claim Kody as a qualifying child for the earned apart). If a child is treated as the qualifying your home. Your friend has no gross income, income credit. Your parent also claims Kody as isn't required to file a 2025 tax return, and child of the noncustodial parent under the rules a qualifying child for head of household filing described earlier for children of divorced or sep- doesn't file a 2025 tax return. Both your friend status. You, as the child's parent, will be the arated parents (or parents who live apart) , only and your friend’s child are your qualifying rela- only one allowed to claim Kody as a qualifying the noncustodial parent can claim the child as a tives if the support test is met. child for the earned income credit. The IRS will dependent and claim the child tax credit, addi- disallow your parent's claim to head of house- Example 2—Return filed to claim refund. tional child tax credit, or credit for other depend- hold filing status unless your parent has another The facts are the same as in Example 1, except ents for the child. However, only the custodial qualifying child or dependent. Your parent can't your friend had wages of $1,500 during the year parent can claim the credit for child and de- claim the earned income credit as a taxpayer and had income tax withheld from their wages. pendent care expenses or the exclusion for de- without a qualifying child because your parent’s Your friend files a return only to get a refund of pendent care benefits for the child. Also, gener- AGI is more than $19,104. the income tax withheld and doesn't claim the ally, the noncustodial parent can't claim the earned income credit or any other tax credits or child as a qualifying child for head of household Qualifying Relative filing status or the earned income credit. In- deductions. Both your friend and your friend’s child are your qualifying relatives if the support stead, generally, the custodial parent, if eligible, test is met. or other eligible person can claim the child as a Four tests must be met for a person to be your qualifying child for those two benefits. If the qualifying relative. The four tests are: Example 3—Earned income credit child is the qualifying child of more than one 1. Not a qualifying child test , claimed. The facts are the same as in Exam- person for these benefits, then the tiebreaker ple 2, except your friend had wages of $8,000 rules just explained determine whether the cus- 2. Member of household or relationship test , during the year and claimed the earned income todial parent or another eligible person can treat 3. Gross income test , and credit. Your friend's child is the qualifying child the child as a qualifying child. of another taxpayer (your friend), so you can’t 4. Support test . claim your friend's child as your qualifying rela- Example 1. You and your 5-year-old child, Age. Unlike a qualifying child, a qualifying rela- tive. Also, you can’t claim your friend as your Kody, lived all year with your parent in the Uni- tive can be any age. There is no age test for a qualifying relative because of the gross income ted States. Your parent paid the entire cost of qualifying relative. test, explained later. keeping up the home. Your AGI is $10,000. Your



parent's AGI is $25,000. Kody’s other parent Kidnapped child. You may be able to treat a Child in Canada or Mexico. You may be able lived in the United States all year, but didn’t live child as your qualifying relative even if the child to claim your child as a dependent even if the with you or Kody. has been kidnapped. See Pub. 501 for details. child lives in Canada or Mexico. If the child Under the rules explained earlier for children doesn't live with you, the child doesn't meet the of divorced or separated parents (or parents residency test to be your qualifying child. How-Not a Qualifying Child Test who live apart), Kody is treated as the qualifying ever, the child may still be your qualifying rela-child of Kody’s other parent, who can claim the A child isn't your qualifying relative if the child is tive. If the persons the child does live with aren't child tax credit for the child. Because of this, your qualifying child or the qualifying child of U.S. citizens and have no U.S. gross income, you can’t claim the child tax credit for your child. any other taxpayer. those persons aren't “taxpayers,” so the child However, those rules don't allow Kody’s other isn't the qualifying child of any other taxpayer. If parent to claim Kody as a qualifying child for Example 1. Your 22-year-old child, who is a the child isn't the qualifying child of any other head of household filing status, the credit for student, lives with you and meets all the tests to taxpayer, the child is your qualifying relative as child and dependent care expenses, the exclu-be your qualifying child. This child isn't your long as the gross income test and the support sion for dependent care benefits, or the earned qualifying relative. test are met. income credit. You can’t claim as a dependent a child who You and your parent didn't have any child Example 2. Your 2-year-old child lives with lives in a foreign country other than Canada or care expenses or dependent care benefits, so your parents and meets all the tests to be their Mexico, unless the child is a U.S. citizen, U.S. neither of you can claim the credit for child and qualifying child. This child isn't your qualifying resident alien, or U.S. national. There is an ex-dependent care expenses or the exclusion for relative. ception for certain adopted children who lived dependent care benefits. But Kody is a qualify-with you all year. See Citizen or Resident Test , ing child of both you and your parent for head of Example 3. Your 30-year-old child lives earlier. household filing status and the earned income with you. This child isn’t a qualifying child be-cause the age test isn’t met. This child may be credit because Kody meets the relationship, Example. You provide all the support of age, residency, support, and joint return tests your qualifying relative if the gross income test your children, ages 6, 8, and 12, who live in for both you and your parent. (The support test and the support test are met. Mexico with your parent and have no income. doesn't apply for the earned income credit.) You are single and live in the United States. However, you agree to let your parent claim Example 4. Your 13-year-old grandchild Your parent isn't a U.S. citizen and has no U.S. Kody. This means your parent can claim Kody only lived with you for 5 months during the year.

Publication 17 (2025) Chapter 3 Dependents 33 income, so your parent isn't a “taxpayer.” Your your qualifying relative only if the stepparent Gross receipts from rental property are children aren't your qualifying children because lives with you all year as a member of your gross income. Don’t deduct taxes, repairs, or they don’t meet the residency test. But since household. other expenses to determine the gross income



they aren't the qualifying children of any other from rental property. Temporary absences. A person is considered taxpayer, they may be your qualifying relatives Gross income includes a partner's share of to live with you as a member of your household and you may be permitted to claim them as de-the gross (not a share of the net) partnership in-during periods of time when one of you, or both, pendents. You may also be able to claim your come. is temporarily absent due to special circumstan-parent as a dependent if the gross income and Gross income also includes all taxable un-ces such as: support tests are met. employment compensation, taxable social se-• Illness, curity benefits, and certain amounts received as



Relationship Test received by degree candidates and used for tui- • Business, tion, fees, supplies, books, and equipment re- To meet this test, a person must either: Member of Household or scholarship and fellowship grants. Scholarships • Education,



1. Live with you all year as a member of your cluded in gross income. For more information • Military service, or household, or • Vacation, quired for particular courses generally aren't in-

• Detention in a juvenile facility. Disabled dependent working at sheltered about scholarships, see chapter 8.

2. Be related to you in one of the ways listed under If the person is placed in a nursing home for you Relatives who don’t have to live with workshop. For purposes of the gross income an indefinite period of time to receive constant below.

test, the gross income of an individual who is

medical care, the absence may be considered permanently and totally disabled at any time



your spouse, that person can’t be your qualify- ices the individual performs at a sheltered work- Death or birth. A person who died during the ing relative. If at any time during the year the person was temporary. during the year doesn't include income for serv-

year, but lived with you as a member of your shop. The availability of medical care at the



person related to you in any of the following vidual's presence there. Also, the income must same is true for a child who was born during the come solely from activities at the workshop that Relatives who don’t have to live with you. A workshop must be the main reason for the indi- household until death, will meet this test. The

ways doesn't have to live with you all year as a year and lived with you as a member of your



member of your household to meet this test. are incident to this medical care. household for the rest of the year. The test is • also met if a child lived with you as a member of A “sheltered workshop” is a school that: Your child, stepchild, or foster child, or a your household except for any required hospital • • descendant of any of them (for example, Provides special instruction or training de- stay following birth. signed to alleviate the disability of the indi- your grandchild). (A legally adopted child is If your dependent died during the year and vidual; and considered your child.) you otherwise qualify to claim that person as a Your brother, sister, half brother, half sister, • Is operated by certain tax-exempt organi- dependent, you can still claim that person as a zations, or by a state, a U.S. territory, a po-



• stepbrother, or stepsister. dependent. litical subdivision of a state or territory, the Your father, mother, grandparent, or other United States, or the District of Columbia. Example. Your parent, who met the tests to direct ancestor, but not foster parent. be your qualifying relative, died on January 15. Permanently and totally disabled has the • Your stepfather or stepmother. You can claim your parent as a dependent on same meaning here as under Qualifying Child, • A son or daughter of your brother or sister. your return. earlier.

• A son or daughter of your half brother or Local law violated. A person doesn't meet



Any of these relationships that were established • Your son-in-law, daughter-in-law, fa- more than half of a person's total support during ther-in-law, mother-in-law, brother-in-law, Example. Your significant other lived with the calendar year. or sister-in-law. you as a member of your household all year. However, if two or more persons provide However, your relationship violated the laws of support, but no one person provides more than the state where you live because your signifi- by marriage aren't ended by death or divorce. half of a person's total support, see Multiple cant other was married to someone else. There- • tionship between you and that person violates Relative) A brother or sister of your father or mother. local law. To meet this test, you must generally provide half sister. this test if at any time during the year the rela- Support Test (To Be a Qualifying

Example. In 2019, you and your spouse fore, your significant other doesn't meet this test Support Agreement, later.

began supporting your spouse’s unmarried pa- and you can’t claim them as a dependent. How to determine if support test is met.



rent, Gene. Your spouse died in 2024. Despite You figure whether you have provided more Adopted child. An adopted child is always your spouse’s death, Gene continues to meet than half of a person's total support by compar- treated as your own child. The term “adopted this test, even if Gene doesn’t live with you. You ing the amount you contributed to that person's child” includes a child who was lawfully placed support with the entire amount of support that can claim Gene as a dependent if all other tests with you for legal adoption. are met, including the gross income and sup- person received from all sources. This includes Cousin. Your cousin must live with you all year port tests. support the person provided from the person’s as a member of your household to meet this own funds.

Foster child. A foster child is an individual test. A cousin is a descendant of a brother or You may find Worksheet 3-1 helpful in figur-

who is placed with you by an authorized place- sister of your father or mother. ing whether you provided more than half of a ment agency or by judgment, decree, or other person's support.

order of any court of competent jurisdiction. Gross Income Test Person's own funds not used for support. A Joint return. If you file a joint return, the per- To meet this test, a person's gross income for person's own funds aren't support unless they son can be related to either you or your spouse. the year must be less than $5,200. are actually spent for support.



Also, the person doesn't need to be related to Gross income defined. Gross income is all in-the spouse who provides support. Example. Your parent received $2,400 in come in the form of money, property, and serv-social security benefits and $300 in interest, For example, you provide more than half the ices that isn't exempt from tax. paid $2,000 for lodging and $400 for recreation, support for your spouse’s stepparent. Your In a manufacturing, merchandising, or min-and put $300 in a savings account. spouse’s stepparent may be your qualifying rel-ing business, gross income is the total net sales Even though your parent received a total of ative even if the stepparent doesn't live with minus the cost of goods sold, plus any miscella-$2,700 ($2,400 + $300), your parent spent only you. However, if you and your spouse file sepa-neous income from the business. $2,400 ($2,000 + $400) for your parent’s own rate returns, your spouse's stepparent can be

34 Chapter 3 Dependents Publication 17 (2025) support. If you spent more than $2,400 for your If a child receives social security benefits Fair rental value of lodging . . . . . . . . . $ 1,800

ceived, you have provided more than half of Clothing, transportation, and benefits are considered as provided by the recreation parent’s support and no other support was re- and uses them toward their own support, the your parent’s support. . . . . . . . . . . . . . . . . . 2,400 child.

Child's wages used for own support. You Medical expenses . . . . . . . . . . . . . 1,200 Support provided by the state (welfare,

can’t include in your contribution to your child's Share of food (1/5 of $5,200) . . . . . . . 1,040 food stamps, housing, etc.). Benefits provi-

support any support paid for by the child with ded by the state to a needy person are gener- Total support . . . . . . . . . . . . . . . $6,440 the child's own wages, even if you paid the wa- ally considered support provided by the state.



ges. However, payments based on the needs of the The support the married couple provide, recipient won't be considered as used entirely Year support is provided. The year you pro-$4,040 ($1,800 lodging + $1,200 medical ex-for that person's support if it is shown that part vide the support is the year you pay for it, even if penses + $1,040 food), is more than half of the of the payments weren't used for that purpose. you do so with borrowed money that you repay parent's $6,440 total support.



in a later year. TANF and other governmental payments. If you use a fiscal year to report your income, Example 2. Your parents, Aubrey and Bai- Under proposed Treasury regulations, if you re- ley, live with you, your spouse, and your two

you must provide more than half of the depend- ceived TANF payments or other similar pay-ent's support for the calendar year in which your children in a house you own. The fair rental ments and used the payments to support an-

fiscal year begins. value of your parents' share of the lodging is other person, those payments are considered

Armed Forces dependency allotments. The support you provided for that person, rather $2,000 a year ($1,000 each), which includes



part of the allotment contributed by the govern- taxable pension of $4,200, which Aubrey other third party. ment and the part taken out of your military pay than support provided by the government or furnishings and utilities. Aubrey receives a non-

spends equally between Aubrey and Bailey for

are both considered provided by you in figuring Foster care. Payments you receive for the sup- items of support such as clothing, transporta-whether you provide more than half of the sup- port of a foster child from a child placement tion, and recreation. Your total food expense for port. If your allotment is used to support per- agency are considered support provided by the the household is $6,000. Your heat and utility

sons other than those you name, you can claim agency. See Foster care payments and expen- bills amount to $1,200. Bailey has hospital and

them as dependents if they otherwise qualify. ses, earlier. medical expenses of $600, which you pay dur-

Example. You are in the Armed Forces. You Home for the aged. If you make a lump-sum ing the year. Figure your parents' total support

authorize an allotment for your surviving parent advance payment to a home for the aged to as follows.



that your surviving parent uses to support them- take care of your relative for life and the pay-ment is based on that person's life expectancy, Support provided Aubrey Bailey selves and their sibling. If the allotment provides the amount of support you provide each year is more than half of each person's support, you Fair rental value of lodging . . . $1,000 $1,000 the lump-sum payment divided by the relative's can claim each of them as a dependent, if they life expectancy. The amount of support you pro-Pension spent for their otherwise qualify, even though you authorize the support . . . . . . . . . . . . 2,100 2,100 vide also includes any other amounts you provi-allotment only for your surviving parent. ded during the year. Share of food (1/6 of

Tax-exempt military quarters allowances. $6,000) . . . . . . . . . . . . 1,000 1,000



dependency allotments in figuring support. The To figure if you provided more than half of a per- Parents' total support . . . . $4,100 $4,700 allotment of pay and the tax-exempt basic al-son's support, you must first determine the total These allowances are treated the same way as Total Support Medical expenses for Bailey . . 600

provided by you for support. lowance for quarters are both considered as support provided for that person. Total support You must apply the support test separately

includes amounts spent to provide food, lodg- to each parent. You provide $2,000 ($1,000

Tax-exempt income. In figuring a person's to- ing, clothing, education, medical and dental lodging + $1,000 food) of Aubrey’s total support tal support, include tax-exempt income, sav- care, recreation, transportation, and similar ne- of $4,100—less than half. You provide $2,600 to ings, and borrowed amounts used to support cessities. Bailey ($1,000 lodging + $1,000 food + $600 that person. Tax-exempt income includes cer- Generally, the amount of an item of support medical)—more than half of Bailey’s total sup-tain social security benefits, welfare benefits, is the amount of the expense incurred in provid- port of $4,700. You meet the support test for nontaxable life insurance proceeds, Armed ing that item. For lodging, the amount of support Bailey, but not Aubrey. Heat and utility costs are Forces family allotments, nontaxable pensions, is the fair rental value of the lodging. included in the fair rental value of the lodging, and tax-exempt interest. Expenses not directly related to any one so these aren't considered separately.



your parent’s support during the year. Your pa- you are considered to provide support equal to the members of the household. rent has earned income of $600, nontaxable so- the fair rental value of the room, apartment, house, or other shelter in which the person cial security benefits of $4,800, and tax-exempt Example 1. You provide $4,000 toward Lodging. If you provide a person with lodging, food for the household, must be divided among member of a household, such as the cost of



of $9,600 ($4,000 + $600 +$4,800 + $200). Fair rental value defined. Fair rental value income. The married couple’s total food ex- is the amount you could reasonably expect to pense for the household is $5,200. They pay receive from a stranger for the same kind of Example 2. Your sibling takes out a student the parent’s medical and drug expenses of lodging. It is used instead of actual expenses loan of $2,500 and uses it to pay college tuition. $1,200. The fair rental value of the lodging pro- such as taxes, interest, depreciation, paint, in- Your sibling is personally responsible for the vided for the parent is $1,800 a year, based on surance, utilities, and the cost of furniture and loan. You provide $2,000 toward their total sup- the cost of similar rooming facilities. Figure the appliances. In some cases, fair rental value may port. You can’t claim them as a dependent be- parent’s total support as follows. be equal to the rent paid. cause you provide less than half of their sup- If you provide the total lodging, the amount for self-support. You can’t claim your parent as lowance for the use of furniture and appliances, parent gets social security benefits of $2,400, and for heat and other utilities that are provided. a dependent because the $4,000 you provide which the parent spends for clothing, transpor- isn’t more than half of your parent’s total support tation, and recreation. The parent has no other interest of $200, all of which your parent uses lives. Fair rental value includes a reasonable al- their two children and one of their parents. Their Example 1. A married couple lives with

port.

of support you provide is the fair rental value of

Social security benefits. If a married cou- the room the person uses, or a share of the fair

ple receives benefits that are paid by one check rental value of the entire dwelling if the person

made out to both of them, half of the total paid has use of your entire home. If you don’t provide

is considered to be for the support of each the total lodging, the total fair rental value must

spouse, unless they can show otherwise. be divided depending on how much of the total

Publication 17 (2025) Chapter 3 Dependents 35 lodging you provide. If you provide only a part child, the car's fair market value ($4,500) must The person who claims the person as a de-and the person supplies the rest, the fair rental be included in your child’s support. Your child pendent must keep these signed statements for value must be divided between both of you ac- has provided more than half of their own total their own records. A multiple support declara-cording to the amount each provides. support of $8,500 ($4,500 + $4,000), so this tion identifying each of the others who agreed

child isn't your qualifying child. You didn't pro- not to claim the person as a dependent must be

Example. Your parents live rent free in a vide more than half of the child’s total support, attached to the return of the person claiming the

house you own. It has a fair rental value of so the child isn't your qualifying relative. You person as a dependent. Form 2120 can be



rental value of $3,600 for the house and $1,800 You can claim someone as a dependent un- Medical insurance premiums. Medical insur- for the furniture. This doesn't include heat and $5,400 a year furnished, which includes a fair can’t claim this child as a dependent. used for this purpose.



utilities. The house is completely furnished with ance premiums you pay, including premiums for der a multiple support agreement for someone related to you or for someone who lived with supplementary Medicare coverage, are inclu- furniture belonging to your parents. You pay you all year as a member of your household. ded in the support you provide. $600 for their utility bills. Utilities usually aren't



included in rent for houses in the area where Example 1. You, and your siblings, Sam, Medical insurance benefits. Medical insur- your parents live. Therefore, you consider the Bobbi, and Dani, provide the entire support of ance benefits, including basic and supplemen- total fair rental value of the lodging to be $6,000 your parent for the year. You provide 45%, Sam tary Medicare benefits, aren't part of support. ($3,600 fair rental value of the unfurnished provides 35%, and Bobbi and Dani each pro- house + $1,800 allowance for the furnishings Tuition payments and allowances under the vide 10%. Either you or Sam can claim your pa- provided by your parents + $600 cost of utilities) GI Bill. Amounts veterans receive under the GI rent as a dependent; the one who doesn’t must of which you are considered to provide $4,200 Bill for tuition payments and allowances while sign a statement agreeing not to claim your pa- ($3,600 + $600). they attend school are included in total support. rent as a dependent. The one who claims your



fair rental value of a person's home that the per- ceives $2,200 from the government under the keep the statement signed by the other for their son owns is considered support contributed by GI Bill. Your child uses this amount for their edu-records. Because neither Bobbi nor Dani pro-that person. cation. You provide the rest of your child’s sup-vides more than 10% of the support, neither can Person living in their own home. The total Example. During the year, your child re- or a similar declaration, to their return and must parent as a dependent must attach Form 2120,

Living with someone rent free. If you live port, $2,000. Because GI benefits are included claim your parent as a dependent and neither

with a person rent free in that person’s home, in total support, your child’s total support is has to sign a statement.



support of that person by the fair rental value of Example 2. You and your sibling each pro- vide 20% of your parent's support for the year. lodging the person provides you. you must reduce the amount you provide for more than half of your child’s support. $4,200 ($2,200 + $2,000). You haven't provided

Childcare expenses. If you pay someone to



measured by its fair market value. Fair market clude these payments in the amount you provi- provided equally by two persons who are unre- lated. Your parent doesn't live with them. Be- Property. Property provided as support is provide child or dependent care, you can in- The remaining 60% of your parent’s support is

value is the price that property would sell for on cause more than half of your parent’s support is ded for the support of your child or disabled de-

the open market. It is the price that would be provided by persons who can’t claim your pa- pendent, even if you claim a credit for the

agreed upon between a willing buyer and a will- rent as a dependent, no one can claim your pa- Pub. 503. payments. For information on the credit, see

ing seller, with neither being required to act, and rent as a dependent. both having reasonable knowledge of the rele- Other support items. Other items may be

vant facts. considered as support depending on the facts Support Test for Children of



item is or isn't support. The following examples show when a capital The following items aren't included in total sup- parents (or parents who live apart) will be a port. qualifying child of one of the parents. See Chil- 1. Federal, state, and local income taxes dren of divorced or separated parents (or pa- rents who live apart) paid by persons from their own income. under Qualifying Child, Example 1. You buy a $200 power lawn earlier. However, if the child doesn't meet the re- mower for your 13-year-old child. The child is 2. Social security and Medicare taxes paid quirements to be a qualifying child of either pa- given the duty of keeping the lawn trimmed. Be- by persons from their own income. rent, the child may be a qualifying relative of furniture, appliances, and cars, bought for a per- Parents Who Live Apart) Don’t Include in Total Support son during the year can be included in total sup-In most cases, a child of divorced or separated port under certain circumstances. Capital expenses. Capital items, such as Divorced or Separated Parents (or in each case.



cause the lawn mower benefits all members of 3. Life insurance premiums. one of the parents. If you think this might apply the household, don’t include the cost of the to you, see Pub. 501. lawn mower in the support of your child. 4. Funeral expenses.



as a birthday present for your 12-year-old child. Example 2. You buy a $150 television set 5. Scholarships received by your child if your Social Security child is a student. Numbers (SSNs) The television set is placed in your child's bed-6. Survivors' and Dependents' Educational room. You can include the cost of the television Assistance payments used for the support for Dependents set in the support of your child. of the child who receives them.

Example 3. You pay $5,000 for a car and list in the Dependents section of your Form You must show the SSN of any dependent you

register it in your name. You and your Multiple Support Agreement 17-year-old child use the car equally. Because Sometimes no one provides more than half of 1040 or 1040-SR.



but merely let your child use it, don’t include the persons, each of whom would be able to claim ! when required, or if you show an incor-cost of the car in your child’s total support. How-you own the car and don’t give it to your child the support of a person. Instead, two or more If you don’t show the dependent's SSN the person as a dependent but for the support CAUTION rect SSN, certain tax benefits may be

ever, you can include in your child's support test, together provide more than half of the per- disallowed. your out-of-pocket expenses of operating the son's support.

car for your child’s benefit. When this happens, you can agree that any No SSN. If a person whom you expect to claim

one of you who individually provides more than as a dependent on your return doesn't have an

Example 4. Your 17-year-old child, using 10% of the person's support, but only one, can SSN, either you or that person should apply for

personal funds, buys a car for $4,500. You pro- claim the person as a dependent. Each of the an SSN as soon as possible by filing Form vide the rest of your child's support, $4,000. Be- others must sign a statement agreeing not to SS-5, Application for a Social Security Card, cause the car is bought and owned by your claim the person as a dependent for that year. with the Social Security Administration (SSA).

36 Chapter 3 Dependents Publication 17 (2025)





You can get Form SS-5 online at SSA.gov/ must pay the smaller of 90% of your expected Tax Withholding for


forms/ss-5.pdf or at your local SSA office. tax for 2026 or 110% of the tax shown on your

It usually takes about 2 weeks to get an SSN 2025 return to avoid an estimated tax penalty. 2026

once the SSA has all the information it needs. If

date, you can file Form 4868 for an extension of This section discusses income tax withholding you don’t have a required SSN by the filing due Introduction

time to file. on:



born and died in 2025, and you don’t have an Born and died in 2025. If your child was you earn or receive income during the year. In Tips, • This chapter discusses how to pay your tax as • Salaries and wages, general, the federal income tax is a

SSN for the child, you may attach a copy of the pay-as-you-go tax. There are two ways to pay • Taxable fringe benefits,



child's birth certificate, death certificate, or hos- as you go. • Sick pay, pital records instead. The document must show • Withholding. If you are an employee, your the child was born alive. If you do this, enter • Pensions and annuities, employer probably withholds income tax “DIED” in row (3) of the Dependents section of from your pay. Tax may also be withheld • Gambling winnings, your Form 1040 or 1040-SR. from certain other income, such as pen-• Unemployment compensation, and Alien or adoptee with no SSN. If your de-sions, bonuses, commissions, and gam-• Certain federal payments. pendent doesn't have and can’t get an SSN, bling winnings. The amount withheld is paid to the IRS in your name. you must show the Individual Taxpayer Identifi-This section explains the rules for withholding



cation Number (ITIN) or adoption taxpayer iden- tax from each of these types of income. • Estimated tax. If you don’t pay your tax tification number (ATIN) instead of an SSN. through withholding, or don’t pay enough This section also covers backup withholding tax that way, you may have to pay estima-Taxpayer identification numbers for ali-on interest, dividends, and other payments. ted tax. People who are in business for ens. If your dependent is a resident or nonresi-themselves will generally have to pay their dent alien who doesn't have and isn't eligible to tax this way. Also, you may have to pay es-get an SSN, your dependent must apply for an Salaries and Wages timated tax if you receive income such as ITIN. For details on how to apply, see Form dividends, interest, capital gains, rent, and W-7, Application for IRS Individual Taxpayer Income tax is withheld from the pay of most em-royalties. Estimated tax is used to pay not Identification Number. ployees. Your pay includes your regular pay, bo-only income tax, but self-employment tax nuses, commissions, and vacation allowances. and alternative minimum tax as well. Taxpayer identification numbers for It also includes reimbursements and other ex-adoptees. If you have a child who was placed This chapter explains these methods. In ad-pense allowances paid under a nonaccountable with you by an authorized placement agency, dition, it also explains the following. plan. See Supplemental Wages , later, for more you may be able to claim the child as a depend-information about reimbursements and allowan-• Credit for withholding and estimated ent. However, if you can’t get an SSN or an ITIN ces paid under a nonaccountable plan. tax. When you file your 2025 income tax for the child, you must get an ATIN for the child If your income is low enough that you won’t return, take credit for all the income tax from the IRS. See Form W-7A, Application for have to pay income tax for the year, you may be withheld from your salary, wages, pen-Taxpayer Identification Number for Pending U.S. exempt from withholding. This is explained un-sions, etc., and for the estimated tax you Adoptions, for details. der Exemption From Withholding , later. paid for 2025. Also take credit for any ex-You can ask your employer to withhold in-cess social security or railroad retirement come tax from noncash wages and other wages tax withheld. See Pub. 505. not subject to withholding. If your employer • Underpayment penalty. If you didn’t pay doesn’t agree to withhold tax, or if not enough is enough tax during the year, either through withheld, you may have to pay estimated tax, as withholding or by making estimated tax 4. discussed later under Estimated Tax for 2026 . payments, you may have to pay a penalty. Military retirees. Military retirement pay is In most cases, the IRS can figure this pen-treated in the same manner as regular pay for alty for you. See Underpayment Penalty for Tax Withholding 2025 at the end of this chapter. income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Useful Items and Estimated You may want to see: Household workers. If you are a household worker, you can ask your employer to withhold Tax income tax from your pay. A household worker Publication is an employee who performs household work in a private home, local college club, or local fra- 505 505 Tax Withholding and Estimated Tax ternity or sorority chapter. What’s New for 2026 Form (and Instructions) Tax is withheld only if you want it withheld and your employer agrees to withhold it. If you W-4 W-4 Employee’s Withholding Certificate don’t have enough income tax withheld, you Tax law changes for 2026. When you figure may have to pay estimated tax, as discussed W-4P how much income tax you want withheld from W-4P Withholding Certificate for Periodic later under Estimated Tax for 2026 . Pension or Annuity Payments your pay and when you figure your estimated Farmworkers. Generally, income tax is with-tax, consider tax law changes effective in 2026. W-4S For more information, see Pub. 505, Tax With-W-4S Request for Federal Income Tax held from your cash wages for work on a farm Withholding From Sick Pay unless your employer: holding and Estimated Tax.

W-4V W-4V Voluntary Withholding Request • Pays you cash wages of less than $150



Reminders during the year, and 1040-ES 1040-ES Estimated Tax for Individuals • Has expenditures for agricultural labor to- 2210 Estimated tax safe harbor for higher in-2210 Underpayment of Estimated Tax by taling less than $2,500 during the year. Individuals, Estates, and Trusts come taxpayers. If your 2025 adjusted gross Differential wage payments. When employ-ees are on leave from employment for military income was more than $150,000 ($75,000 if 2210-F 2210-F Underpayment of Estimated Tax duty, some employers make up the difference you are married filing a separate return), you by Farmers and Fishers

Publication 17 (2025) Chapter 4 Tax Withholding and Estimated Tax 37 between the military pay and civilian pay. Pay- Changing your withholding for 2027. If • You have more than one job at a time.



ments to an employee who is on active duty for events in 2026 will change the amount of with- • You have nonwage income, such as inter-a period of more than 30 days will be subject to holding you should claim for 2027, you must est, dividends, alimony, unemployment income tax withholding, but not subject to social give your employer a new Form W-4 by Decem-compensation, or self-employment in-security, Medicare, or federal unemployment ber 1, 2026. If the event occurs in December come. (FUTA) tax withholding. The wages and with-2026, submit a new Form W-4 within 10 days. • holding will be reported on Form W-2, Wage You will owe additional amounts with your return, such as self-employment tax. and Tax Statement. Checking Your Withholding • Your withholding is based on obsolete After you have given your employer a Form Determining Amount of Tax Form W-4 information for a substantial part W-4, you can check to see whether the amount of the year. Withheld Using Form W-4 of tax withheld from your pay is too little or too • The amount of income tax your employer with-much. If too much or too little tax is being with-You work only part of the year. held, you should give your employer a new holds from your regular pay depends on the fol-• You change the amount of your withholding Form W-4 to change your withholding. You lowing two things. during the year. should try to have your withholding match your • The amount you earn in each payroll pe-• You are subject to Additional Medicare Tax actual tax liability. If not enough tax is withheld, riod. or Net Investment Income Tax (NIIT). If you you will owe tax at the end of the year and may • The information you give your employer on have to pay interest and a penalty. If too much anticipate liability for Additional Medicare Tax or NIIT, you may request that your em-Form W-4. tax is withheld, you will lose the use of that ployer withhold an additional amount of in-money until you get your refund. Always check Form W-4 includes steps to help you figure come tax withholding on Form W-4. your withholding if there are personal or finan-your withholding. Complete Steps 2 through 4 cial changes in your life or changes in the law only if they apply to you. Cumulative wage method. If you change the that might change your tax liability. amount of your withholding during the year, too • Step 1. Enter your personal information in-much or too little tax may have been withheld cluding your filing status. Note: You can’t give your employer a pay-for the period before you made the change. You ment to cover withholding on salaries and wa-• Step 2. Complete this step if you have may be able to compensate for this if your em-ges for past pay periods or a payment for esti-more than one job at the same time or are ployer agrees to use the cumulative wage with-mated tax. married filing jointly and you and your holding method for the rest of the year. You spouse both work. must ask your employer in writing to use this Completing Form W-4 and method. • Step 3. Complete this step if you claim de-pendents and other credits. Worksheets To be eligible, you must have been paid for the same kind of payroll period (weekly, bi-Form W-4 has worksheets to help you figure the • Step 4. Complete this optional step to weekly, etc.) since the beginning of the year. correct amount of withholding you can claim. make other adjustments. The worksheets are for your own records. Don’t —Other income give them to your employer. Publication 505 —Deductions

—Extra withholding To make sure you are getting the right amount Multiple Jobs Worksheet. If you have income



When you start a new job, you must fill out Form both work, complete the Multiple Jobs Work- your return. It will also help you determine how sheet on the Form W-4. W-4 and give it to your employer. Your employer much, if any, additional withholding is needed If you and your spouse expect to file sepa-should have copies of the form. If you need to each payday to avoid owing tax when you file rate returns, figure your withholding using sepa-change the information later, you must fill out a New Job married filing jointly and you and your spouse compare the total tax to be withheld during the year with the tax you can expect to figure on from more than one job at the same time, or are of tax withheld, see Pub. 505. It will help you

new form. rate worksheets based on your own individual your return. If you don’t have enough tax with-

If you work only part of the year (for exam- income, adjustments, deductions, and credits. held, you may have to pay estimated tax, as ex-

plained under Estimated Tax for 2026, later.

ple, you start working after the beginning of the Deductions Worksheet. Use the Deductions year), too much tax may be withheld. You may You can use the Tax Withholding Esti- Worksheet on Form W-4 if you plan to itemize

be able to avoid overwithholding if your em- TIP mator at IRS.gov/W4App, instead of deductions or claim certain adjustments to in-

ployer agrees to use the part-year method. See Pub. 505 or the worksheets included come and you want to reduce your withholding.

Part-Year Method in chapter 1 of Pub. 505 for with Form W-4, to determine whether you need Also complete this worksheet when you have

more information. to have your withholding increased or de- changes to these items to see if you need to

Employee also receiving pension income. change your withholding. creased.



begin a new job, you will need to file Form W-4 Getting the Right Amount of Tax Rules Your Employer Must Follow If you receive pension or annuity income and



with your new employer. However, you can Withheld It may be helpful for you to know some of the choose to split your withholding between your In most situations, the tax withheld from your withholding rules your employer must follow. pension and job in any manner. pay will be close to the tax you figure on your re-These rules can affect how to fill out your Form



Changing Your Withholding arise. • turn if you follow these two rules. W-4 and how to handle problems that may

You accurately complete all the Form W-4



When this happens, you may need to give your when changes occur. Form W-4. Beginning with your first payday, your employer will use the information you give employer a new Form W-4 to change your with- But, because the worksheets and withhold- on the form to figure your withholding. holding status. ing methods don’t account for all possible situa- If you later fill out a new Form W-4, your em- tions, you may not be getting the right amount marital status, adjustments, deductions, or your employer should have you complete a • You give your employer a new Form W-4 credits you expect to claim on your tax return. During the year, changes may occur to your worksheets that apply to you. New Form W-4. When you start a new job,

If a change in personal circumstances re- ployer can put it into effect as soon as possible.

duces the amount of withholding you are enti- withheld. This is most likely to happen in the fol- The deadline for putting it into effect is the start tled to claim, you are required to give your em- lowing situations. of the first payroll period ending 30 or more ployer a new Form W-4 within 10 days after the • You are married and both you and your days after you turn it in. change occurs. spouse work.



38 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2025) No Form W-4. If you don’t give your employer Your claim of exempt status may be re- For more information on reporting your tips a completed Form W-4, your employer must viewed by the IRS. to your employer and on the withholding rules

gle. An exemption is good for only 1 year. You withhold at the highest rate, as if you were sin- for tip income, see Pub. 531.

must generally give your employer a new Form How employer figures amount to withhold.

Repaying withheld tax. If you find you are W-4 by February 15 each year to continue your The tips you report to your employer are coun-having too much tax withheld because you exemption. ted as part of your income for the month you re-didn’t claim the correct amount of withholding port them. Your employer can figure your with-



you are entitled to, you should give your em- holding in either of the following two ways. Supplemental Wages ployer a new Form W-4. Your employer can’t re- • By withholding at the regular rate on the Supplemental wages include bonuses, certain pay any of the tax previously withheld. Instead, sum of your pay plus your reported tips. tips, commissions, overtime pay, vacation allow- claim the full amount withheld when you file ances, certain sick pay, and expense allowan- your tax return. • By withholding at the regular rate on your ces under certain plans. The payer can figure pay plus a percentage of your reported However, if your employer has withheld withholding on supplemental wages using the tips. more than the correct amount of tax for the same method used for your regular wages. Form W-4 you have in effect, you don’t have to Not enough pay to cover taxes. If your regu- However, if these payments are identified sepa- fill out a new Form W-4 to have your withholding lar pay isn’t enough for your employer to with- rately from your regular wages, your employer lowered to the correct amount. Your employer hold all the tax (including income tax and social or other payer of supplemental wages can with- can repay the amount that was withheld incor- security and Medicare taxes (or the equivalent hold income tax from these wages at a flat rate. rectly. If you aren’t repaid, your Form W-2 will railroad retirement tax)) due on your pay plus reflect the full amount actually withheld, which Certain qualified tips and overtime pay your tips, you can give your employer money to you would claim when you file your tax return. can be deducted from your taxable in- ! cover the shortage. See Pub. 531 for more infor- come beginning in 2025 through 2028. CAUTION mation. Exemption From Withholding See Pub. 531, Reporting Tip Income, and Pub. Allocated tips. Your employer shouldn’t with- 505 for more information. If you claim exemption from withholding, your hold income tax, Medicare tax, social security employer won’t withhold federal income tax tax, or railroad retirement tax on any allocated Expense allowances. Reimbursements or from your wages. The exemption applies only to tips. Withholding is based only on your pay plus other expense allowances paid by your em- income tax, not to social security, Medicare, or your reported tips. Your employer should refund ployer under a nonaccountable plan are treated FUTA tax withholding. to you any incorrectly withheld tax. See Pub. as supplemental wages. You can claim exemption from withholding 531 for more information. Reimbursements or other expense allowan- for 2026 only if both of the following situations ces paid under an accountable plan that are apply. more than your proven expenses are treated as Taxable Fringe Benefits • For 2025, you had a right to a refund of all paid under a nonaccountable plan if you don’t return the excess payments within a reasonable federal income tax withheld because you The value of certain noncash fringe benefits you had no tax liability. period of time. receive from your employer is considered part For more information about accountable and of your pay. Your employer must generally with- • For 2026, you expect a refund of all federal nonaccountable expense allowance plans, see income tax withheld because you expect to hold income tax on these benefits from your Pub. 505. regular pay. have no tax liability. For information on fringe benefits, see Students. If you are a student, you aren’t auto- Penalties Fringe Benefits under Employee Compensation matically exempt. See chapter 1 to find out if in chapter 5. you must file a return. If you work only part time You may have to pay a penalty of $500 if both of Although the value of your personal use of or only during the summer, you may qualify for the following apply. an employer-provided car, truck, or other high- exemption from withholding. • You make statements or claim withholding way motor vehicle is taxable, your employer can on your Form W-4 that reduce the amount Age 65 or older or blind. If you are 65 or choose not to withhold income tax on that of tax withheld. older or blind, use Worksheet 1-1 or 1-2 in amount. Your employer must notify you if this





chapter 1 of Pub. 505 to help you decide if you choice is made. • You have no reasonable basis for those qualify for exemption from withholding. Don’t statements or withholding at the time you For more information on withholding on taxa-use either worksheet if you will itemize deduc- prepare your Form W-4. ble fringe benefits, see chapter 1 of Pub. 505.




credits in chapter 1 of Pub. 505. supplying false or fraudulent information on your Sick Pay Form W-4 or for willfully failing to supply infor-Instead, see Itemizing deductions or claiming There is also a criminal penalty for willfully tions or claim tax credits on your 2026 return. Eligible for a bonus deduction? If you are mation that would increase the amount with- Sick pay is a payment to you to replace your age 65 or older, you may be eligible for a $6,000 held. The penalty upon conviction can be either regular wages while you are temporarily absent ($12,000 if married filing jointly) bonus deduc- a fine of up to $1,000 or imprisonment for up to from work due to sickness or personal injury. To tion for tax years beginning in 2025 through tax 1 year, or both. qualify as sick pay, it must be paid under a plan years beginning no later than 2028. For more in- These penalties will apply if you deliberately to which your employer is a party. formation, see Pub. 505. and knowingly falsify your Form W-4 in an at- If you receive sick pay from your employer or Claiming exemption from withholding. To tempt to reduce or eliminate the proper with- an agent of your employer, income tax must be

claim exemption, you must give your employer a holding of taxes. A simple error or an honest withheld. An agent who doesn’t pay regular wa-

Form W-4. Write “Exempt” on the form in the mistake won’t result in one of these penalties. ges to you may choose to withhold income tax



cable steps of the form. However, if you receive sick pay from a third Tips space below Step 4(c) and complete the appli- at a flat rate.

If you claim exemption, but later your situa- party who isn’t acting as an agent of your em-

tion changes so that you will have to pay in- The tips you receive while working on your job ployer, income tax will be withheld only if you

come tax after all, you must file a new Form W-4 are considered part of your pay. You must in- choose to have it withheld. See Form W-4S, within 10 days after the change. If you claim ex- clude your tips on your tax return on the same later. emption in 2026, but you expect to owe income line as your regular pay. However, tax isn’t with- If you receive payments under a plan in tax for 2027, you must file a new Form W-4 by held directly from tip income, as it is from your which your employer doesn’t participate (such December 1, 2026. regular pay. Nevertheless, your employer will as an accident or health plan where you paid all

take into account the tips you report when figur- the premiums), the payments aren’t sick pay

ing how much to withhold from your regular pay. and usually aren’t taxable.

Publication 17 (2025) Chapter 4 Tax Withholding and Estimated Tax 39 Union agreements. If you receive sick pay un- Exception. Gambling winnings from bingo, If you don’t pay enough tax, either through der a collective bargaining agreement between keno, and slot machines generally aren’t sub- withholding or estimated tax, or a combination

your union and your employer, the agreement ject to income tax withholding. However, you of both, you may have to pay a penalty. See Un-

may determine the amount of income tax with- may need to provide the payer with a social se- derpayment Penalty for 2025 at the end of this holding. See your union representative or your curity number (SSN) to avoid withholding. See chapter.



Form W-4S. If you choose to have income tax the tax treatment of social security and railroad winnings not subject to withholding, you may withheld from sick pay paid by a third party, retirement benefits, see chapter 7. See Pub. need to pay estimated tax. See Estimated Tax such as an insurance company, you must fill out 225, Farmer’s Tax Guide, for information about for 2026 employer for more information. Backup withholding on gambling winnings in chapter 1 of Pub. 505. If you receive gambling More information. For more information about

, later.

you can use to figure the amount you want with- If you don’t pay enough tax, either through Form W-4S. Its instructions contain a worksheet the tax treatment of CCC loans or crop disaster



ply. of both, you may have to pay a penalty. See Un-derpayment Penalty for 2025 at the end of this Backup Withholding Give the completed form to the payer of your chapter. held. They also explain restrictions that may ap- withholding or estimated tax, or a combination payments. sick pay. The payer must withhold according to Banks or other businesses that pay you certain

your directions on the form. Form W-2G. If a payer withholds income tax kinds of income must file an information return Estimated tax. If you don’t request withholding from your gambling winnings, you should re- (Form 1099) with the IRS. The information re-

on Form W-4S, or if you don’t have enough tax ceive a Form W-2G, Certain Gambling Win- turn shows how much you were paid during the

withheld, you may have to make estimated tax nings, showing the amount you won and the year. It also includes your name and taxpayer

payments. If you don’t pay enough tax, either amount withheld. Report the tax withheld on identification number (TIN). TINs are explained

through estimated tax or withholding, or a com- Form 1040 or 1040-SR, line 25c. in chapter 1 under Social Security Number

See Underpayment Penalty for 2025 at the end These payments generally aren’t subject to Unemployment bination of both, you may have to pay a penalty. (SSN).

of this chapter. withholding. However, “backup” withholding is Compensation

required in certain situations. Backup withhold-

Pensions and Annuities ing can apply to most kinds of payments that You can choose to have income tax withheld are reported on Form 1099.

Income tax will usually be withheld from your The payer must withhold at a flat 24% rate in from unemployment compensation. To make

pension or annuity distributions unless you the following situations. this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer.

choose not to have it withheld. This rule applies All unemployment compensation is taxable. • You don’t give the payer your TIN in the re-to distributions from: If you don’t have income tax withheld, you may quired manner.



• have to pay estimated tax. See Estimated Tax A traditional individual retirement arrange- • The IRS notifies the payer that the TIN you for 2026 , later. ment (IRA); gave is incorrect. If you don’t pay enough tax, either through • A life insurance company under an endow-• You are required, but fail, to certify that you withholding or estimated tax, or a combination ment, annuity, or life insurance contract; aren’t subject to backup withholding. of both, you may have to pay a penalty. See Un-• A pension, annuity, or profit-sharing plan; derpayment Penalty for 2025 at the end of this • The IRS notifies the payer to start withhold-chapter. ing on interest or dividends because you • A stock bonus plan; and have underreported interest or dividends • Any other plan that defers the time you re-on your income tax return. The IRS will do ceive compensation. Federal Payments this only after it has mailed you four noti-

The amount withheld depends on whether ces. You can choose to have income tax withheld

you receive payments spread out over more from certain federal payments you receive. Go to IRS.gov/Businesses/Small-



(nonperiodic payments), or as an eligible roll- Withholding for more information on kinds of 1. Social security benefits. over distribution (ERD). Income tax withholding than 1 year (periodic payments), within 1 year These payments are the following. Businesses-Self-Employed/Backup-

payments subject to backup withholding.

from an ERD is mandatory. 2. Tier 1 railroad retirement benefits. Penalties. There are civil and criminal penal-More information. For more information on 3. Commodity Credit Corporation (CCC) ties for giving false information to avoid backup withholding on pensions and annuities, includ- loans you choose to include in your gross withholding. The civil penalty is $500. The crimi-ing a discussion of Form W-4P, see Pensions income. nal penalty, upon conviction, is a fine of up to

and Annuities in chapter 1 of Pub. 505. $1,000 or imprisonment of up to 1 year, or both. 4. Payments under the Agricultural Act of

Gambling Winnings 1949 (7 U.S.C. 1421 et seq.), as amen- Estimated Tax for 2026 ded, or title II of the Disaster Assistance

Act of 1988, that are treated as insurance

Income tax is withheld at a flat 24% rate from proceeds and that you receive because: Estimated tax is the method used to pay tax on

certain kinds of gambling winnings. income that isn’t subject to withholding. This in- Gambling winnings of more than $5,000 a. Your crops were destroyed or dam-

from the following sources are subject to in- aged by drought, flood, or any other cludes income from self-employment, interest, come tax withholding. natural disaster; or dividends, alimony, rent, gains from the sale of assets, prizes, and awards. You may also have



It doesn’t matter whether your winnings are paid • b. You were unable to plant crops be- to pay estimated tax if the amount of income tax Any sweepstakes; wagering pool, including cause of a natural disaster described being withheld from your salary, pension, or payments made to winners of poker tour- in (a). other income isn’t enough. naments; or lottery. Estimated tax is used to pay both income 5. Any other payment under federal law as • Any other wager, if the proceeds are at tax and self-employment tax, as well as other determined by the Secretary. least 300 times the amount of the bet. taxes and amounts reported on your tax return. To make this choice, fill out Form W-4V (or a If you don’t pay enough tax, either through with- in cash, in property, or as an annuity. Winnings similar form provided by the payer) and give it to holding or estimated tax, or a combination of not paid in cash are taken into account at their the payer. both, you may have to pay a penalty. If you don’t fair market value. If you don’t choose to have income tax with- pay enough by the due date of each payment

held, you may have to pay estimated tax. See period (see When To Pay Estimated Tax, later),

Estimated Tax for 2026, later. you may be charged a penalty even if you are

40 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2025) Figure 4-A. Do You Have To Pay Estimated Tax?



Start Here

Will you owe $1,000 or more Will your income tax Will your income tax for 2026 after subtracting Yes withholding and refundable No withholding and refundable No income tax withholding and credits* be at least 90% credits* be at least 100%** of refundable credits* from your (662/3% for farmers and fishers) the tax shown on your 2025 total tax? (Don’t subtract any of the tax shown on your 2026 tax return? estimated tax payments.) tax return? Note: Your 2025 return must

have covered a 12-month

No Yes period.

Yes



You are NOT required to pay estimated tax.



You MUST make estimated

tax payment(s) by the

required due date(s).

See When To Pay Estimated Tax.

* Use the refundable credits shown on the 2026 Estimated Tax Worksheet in Pub. 505.

** 110% if less than two-thirds of your gross income for 2025 and 2026 is from farming or fishing and your 2025

adjusted gross income was more than $150,000 ($75,000 if your filing status for 2026 is married filing a separate return).



due a refund when you file your tax return. For General rule. In most cases, you must pay es- Form 1040-ES (NR), U.S. Estimated Tax for information on when the penalty applies, see timated tax for 2026 if both of the following ap- Nonresident Alien Individuals.



this chapter. tional of the United States. You are a resident 1. You expect to owe at least $1,000 in tax for alien if you either have a green card or meet the Underpayment Penalty for 2025 at the end of ply. You are an alien if you aren’t a citizen or na-



Estimated Tax 2. You expect your withholding plus your re- 519, U.S. Tax Guide for Aliens. fundable credits to be less than the Married taxpayers. If you qualify to make joint If you receive salaries or wages, you can avoid smaller of: estimated tax payments, apply the rules dis-Who Doesn’t Have To Pay 2026, after subtracting your withholding and refundable credits. substantial presence test. For more information about the substantial presence test, see Pub.

ployer to take more tax out of your earnings. To having to pay estimated tax by asking your em- a. 90% of the tax to be shown on your cussed here to your joint estimated income.

do this, give a new Form W-4 to your employer. 2026 tax return; or You and your spouse can make joint estima-See chapter 1 of Pub. 505. b. 100% of the tax shown on your 2025 ted tax payments even if you aren’t living to-

Estimated tax not required. You don’t have to tax return (but see Special rules for gether.

pay estimated tax for 2026 if you meet all three farmers, fishers, and higher income However, you and your spouse can’t make



of the following conditions. taxpayers, later). Your 2025 tax return joint estimated tax payments if: must cover all 12 months. • You are legally separated under a decree • You had no tax liability for 2025. of divorce or separate maintenance, If the result from using the general rule • You were a U.S. citizen or resident alien for ! above suggests that you won’t have • You and your spouse have different tax the whole year. CAUTION enough withholding, complete the years, or • Your 2025 tax year covered a 12-month pe-2026 Estimated Tax Worksheet in Pub. 505 for a • Either spouse is a nonresident alien (un-riod. more accurate calculation. less that spouse elected to be treated as a



tax was zero or you didn’t have to file an income You had no tax liability for 2025 if your total resident alien for tax purposes (see chap- Special rules for farmers, fishers, and ter 1 of Pub. 519)). higher income taxpayers. If at least tax return. For the definition of “total tax” for two-thirds of your gross income for tax year If you and your spouse can’t make estimated 2025, see chapter 2 of Pub. 505. 2025 or 2026 is from farming or fishing, substi- tax payments, apply these rules to your sepa-

Who Must Pay Estimated tute 662/3% for 90% in (2a) under the General rate estimated income. Making joint or separate

rule, earlier. If your AGI for 2025 was more than estimated tax payments won’t affect your choice

Tax $150,000 ($75,000 if your filing status for 2026 of filing a joint tax return or separate returns for

is married filing a separate return), substitute 2026.



If you owe additional tax for 2025, you may have 110% for 100% in (2b) under General rule, ear- 2025 separate returns and 2026 joint re-lier. See Figure 4-A and chapter 2 of Pub. 505 to pay estimated tax for 2026. turn. If you plan to file a joint return with your for more information. You can use the following general rule as a spouse for 2026 but you filed separate returns guide during the year to see if you will have Aliens. Resident and nonresident aliens may for 2025, your 2025 tax is the total of the tax enough withholding, or if you should increase also have to pay estimated tax. Resident aliens shown on your separate returns. You filed a your withholding or make estimated tax should follow the rules in this chapter unless no- separate return if you filed as single, head of payments. ted otherwise. Nonresident aliens should get household, or married filing separately.

Publication 17 (2025) Chapter 4 Tax Withholding and Estimated Tax 41 turns. If you plan to file a separate return for enough tax by the due date of each payment Estimated Tax 2026 but you filed a joint return for 2025, your period, you may be charged a penalty even if Installment Payments 2025 joint return and 2026 separate re- a specific payment due date. If you don’t pay Table 4-1. General Due Dates for 2025 tax is your share of the tax on the joint re- you are due a refund when you file your income



turn. You file a separate return if you file as sin- tax return. The payment periods and due dates If you first Make Make later gle, head of household, or married filing sepa-for estimated tax payments are shown next. have income installments installments rately. on which you by:* by:* To figure your share of the tax on the joint re-For the period: Due date:* must pay turn, first figure the tax both you and your estimated tax: spouse would have paid had you filed separate Jan. 1–March 31 . . . . . . April 15 Before April 1 April 15 June 15 returns for 2025 using the same filing status as April 1–May 31 . . . . . . . June 15 Sept. 15 June 1–August 31 . . . . . Sept. 15 for 2026. Then, multiply the tax on the joint re-Sept. 1–Dec. 31 . . . . . . Jan. 15, next Jan. 15, next year turn by the following fraction. year

. April 1–May 31 June 15 Sept. 15

* See Saturday, Sunday, holiday rule and Jan. 15, next

The tax you would have paid had year January payment .

you filed a separate return June 1–Aug. 31 Sept. 15 Jan. 15, next



spouse would have paid had The total tax you and your year Saturday, Sunday, holiday rule. If the due date for an estimated tax payment falls on a After Aug. 31 Jan. 15, next (None) you filed separate returns Saturday, Sunday, or legal holiday, the payment year

will be on time if you make it on the next day



turn for 2025 showing taxable income of payment. January payment. If you file your 2026 Form $48,500 and tax of $5,346. Of the $48,500 taxa-Example. Owen and Sophia filed a joint re- that isn’t a Saturday, Sunday, or legal holiday. * See Saturday, Sunday, holiday rule and January ble income, $40,100 was Owen’s and the rest 1040 or 1040-SR by February 1, 2027, and pay How much to pay to avoid a penalty. To de-

was Sophia’s. For 2026, they plan to file married the rest of the tax you owe, you don’t need to termine how much you should pay by each pay-

filing separately. Owen figures tax on the 2025 make the payment due on January 15, 2027. ment due date, see How To Figure Each Pay-

joint return as follows. ment next. Fiscal-year taxpayers. If your tax year doesn’t

start on January 1, see the Form 1040-ES in- How To Figure Each

Tax on $40,100 based on a structions for your payment due dates.



Total . . . . . . . You should pay enough estimated tax by the You don’t have to make estimated tax payments . . . . . . . . . . . . . . . $5,420 due date of each payment period to avoid a until you have income on which you will owe in- penalty for that period. You can figure your re- Owen’s percentage of total come tax. If you have income subject to estima- quired payment for each period by using either ($4,577 ÷ $5,420) . . . . . . 84.4465% ted tax during the first payment period, you the regular installment method or the annual- Tax on $8,400 based on a When To Start 843 separate return separate return . . . . . . . $4,577 Payment

Owen’s share of tax on joint must make your first payment by the due date

return ized income installment method. These meth- for the first payment period. You can pay all your

($5,346 × 84.4465%) $4,514 ods are described in chapter 2 of Pub. 505. If . . . . estimated tax at that time, or you can pay it in

installments. If you choose to pay in install- you don’t pay enough during each payment pe-

How To Figure Estimated ments, make your first payment by the due date riod, you may be charged a penalty even if you

for the first payment period. Make your remain- are due a refund when you file your tax return.

Tax ing installment payments by the due dates for If the earlier discussion under No income

the later periods. subject to estimated tax during first period or

To figure your estimated tax, you must figure No income subject to estimated tax during tax the later discussion under Change in estimated

applies to you, you may benefit from reading

your expected adjusted gross income (AGI), first period. If you don’t have income subject Annualized Income Installment Method in chap-taxable income, taxes, deductions, and credits to estimated tax until a later payment period, ter 2 of Pub. 505 for information on how to avoid



may be helpful to use your income, deductions, When figuring your 2026 estimated tax, it date for that period. You can pay your entire es- Underpayment penalty. Under the regular in-for the year. you must make your first payment by the due a penalty.



your 2025 federal tax return as a guide. You can that period and the due dates for the remaining timated tax, you may be charged a penalty for periods. use Form 1040-ES and Pub. 505 to figure your underpayment of estimated tax for that period estimated tax. Nonresident aliens use Form when you file your tax return. Under the annual-1040-ES (NR) and Pub. 505 to figure estimated and credits for 2025 as a starting point. Use stallment method, if your estimated tax payment you can pay it in installments by the due date for for any period is less than one-fourth of your es- timated tax by the due date for that period or



tax (see chapter 8 of Pub. 519 for more informa- ized income installment method, your estimated tax payments vary with your income, but the tion). amount required must be paid each period. See You must make adjustments both for Instructions for Form 2210 for more information. changes in your own situation and for recent

changes in the tax law. For a discussion of Change in estimated tax. After you make an

these changes, go to IRS.gov. estimated tax payment, changes in your in-

For more complete information on how to come, adjustments, deductions, or credits may

figure your estimated tax for 2026, see chap- make it necessary for you to refigure your esti-

ter 2 of Pub. 505. mated tax. Pay the unpaid balance of your

amended estimated tax by the next payment

When To Pay Estimated due date after the change or in installments by

Tax that date and the due dates for the remaining

payment periods.

For estimated tax purposes, the tax year is divi-

ded into four payment periods. Each period has

42 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2025) You don’t have to pay estimated tax if your with- proved. A user fee is charged. payment of estimated tax by check or money or-holding in each payment period is at least as der must be accompanied by a payment much as: • IRS2Go. This is the mobile application of voucher from Form 1040-ES. the IRS. You can access IRS Direct Pay or • One-fourth of your required annual pay-During 2025, if you: pay by card by downloading the applica-ment, or Required you will receive immediate notification of options might be right for you. whether your agreement has been ap-If you choose to mail in your payment, each Estimated Tax Payments Not Once you complete the online process, our safe, quick, and easy electronic payment



You also don’t have to pay estimated tax if you • but not by electronic means, Your required annualized income install- tion. • Made at least one estimated tax payment ment for that period. Electronic Federal Tax Payment • Didn’t use software or a paid preparer to System (EFTPS) prepare or file your return, will pay enough through withholding to keep the This system allows you to pay your taxes online then you should receive a copy of the 2026 amount you owe with your return under $1,000. or by phone directly from your checking or sav- Form 1040-ES with payment vouchers. ings account. There is no fee for this service. The enclosed payment vouchers will be pre- How To Pay Estimated Tax You must be enrolled either online or have an printed with your name, address, and SSN. Us- enrollment form mailed to you. See EFTPS un- ing the preprinted vouchers will speed process- There are several ways to pay estimated tax. der Pay by Phone, later. ing, reduce the chance of error, and help save • Credit an overpayment on your 2025 return processing costs. Pay by Phone to your 2026 estimated tax. Use the window envelopes that came with



Credit an Overpayment • your Form 1040-ES package. If you use your Pay by direct transfer from your bank ac- Paying by phone is another safe and secure own envelopes, make sure you mail your pay- count, or pay by debit or credit card using a method of paying electronically. Use one of the ment vouchers to the address shown in the pay-by-phone system or the Internet. following methods: (1) call one of the debit or Form 1040-ES instructions for the place where credit card providers, or (2) use the EFTPS to • Send in your payment (check or money or- you live. pay directly from your checking or savings ac- der) with a payment voucher from Form count. 1040-ES. No checks of $100 million or more accep- ted. The IRS can’t accept a single check (in- Debit or credit card. Call one of our service cluding a cashier’s check) for amounts of providers. Each charges a fee that varies by $100,000,000 ($100 million) or more. If you are provider, card type, and payment amount. If you show an overpayment of tax after com- sending $100 million or more by check, you’ll pleting your Form 1040 or 1040-SR for 2025, need to spread the payment over two or more Link2Gov Corporation you can apply part or all of it to your estimated 888-PAY-1040 TM checks with each check made out for an (888-729-1040) tax for 2026. On line 36 of Form 1040 or amount less than $100 million. This limit doesn’t PAY1040.com 1040-SR, enter the amount you want credited to apply to other methods of payment (such as your estimated tax rather than refunded. Take electronic payments). Consider a method of ACI Payments, Inc. (formerly Official the amount you have credited into account payment other than check if the amount of the Payments) when figuring your estimated tax payments. payment is over $100 million. 888-UPAY-TAX TM (888-872-9829) You can’t have any of the amount you credi- fed.acipayonline.com ted to your estimated tax refunded to you until Note: These criteria can change without no-

you file your tax return for the following year. You tice. If you don’t receive a Form 1040-ES pack-

also can’t use that overpayment in any other EFTPS. To get more information about EFTPS age and you are required to make an estimated

way. or to enroll in EFTPS, go to EFTPS.gov or call tax payment, you should go to IRS.gov/

800-555-4477. To contact EFTPS using Tele- Form1040ES and print a copy of Form 1040-ES



Pay Online communications Relay Services (TRS) for peo- that includes four blank payment vouchers. ple who are deaf, hard of hearing, or have a Complete one of these and make your payment The IRS offers an electronic payment option speech disability, dial 711 and then provide the timely to avoid penalties for paying late. that is right for you. Paying online is convenient, TRS assistant the 800-555-4477 number or Don’t use the address shown in the In- secure, and helps make sure we get your pay- 800-733-4829. Additional information about ments on time. To pay your taxes online or for ! structions for Form 1040 for your esti- EFTPS is also available in Pub. 966. more information, go to IRS.gov/Payments . You CAUTION mated tax payments.



can pay using any of the following methods. If you didn’t pay estimated tax last year, you Pay by Mobile Device • IRS Direct Pay. For online transfers di- can order Form 1040-ES from the IRS (see the To pay through your mobile device, download rectly from your checking or savings ac- inside back cover of this publication) or down- the IRS2Go application. count at no cost to you, go to IRS.gov/ load it from IRS.gov. Follow the instructions to

• Pay by Cash Pay by card or digital wallet. To pay by DirectPay. make sure you use the vouchers correctly.

Joint estimated tax payments. If you file a

debit or credit card or digital wallet, go to Cash is an in-person payment option for individ- joint return and are making joint estimated tax

IRS.gov/PayByCard. A fee is charged by uals provided through retail partners. To make a payments, enter the names and SSNs on the these service providers. You can also pay cash payment, you must choose a payment pro- payment vouchers in the same order as they will by phone with a debit or credit card. See cessor online with ACI Payments, Inc. at appear on the joint return.

later. Change of address. You must notify the IRS if Debit or credit card under Pay by Phone, fed.acipayonline.com or Pay1040.com, our offi-

• to you are making estimated tax payments and IRS.gov/PayWithCash . Don’t send cash pay- Electronic funds withdrawal (EFW). cial payment provider. For more information, go

This is an integrated e-file/e-pay option of- ments through the mail. you changed your address during the year.

Complete Form 8822, Change of Address, and

electronically using tax preparation soft- Pay by Check or Money Order fered only when filing your federal taxes mail it to the address shown in the instructions

ware, through a tax professional, or Using the Estimated Tax for that form.

through the IRS at IRS.gov/EFW. Payment Voucher

• Online payment agreement. If you can’t Before submitting a payment through the mail

pay in full by the due date of your tax re- using the estimated tax payment voucher, turn, you can apply for an online monthly please consider alternative methods. One of

installment agreement at IRS.gov/OPA.

Publication 17 (2025) Chapter 4 Tax Withholding and Estimated Tax 43 and Estimated Tax for taxable sick pay you received and any income If you are married but file a separate return, you tax withheld from your sick pay. can take credit only for the tax withheld from Credit for Withholding In addition, Form W-2 is used to report any Separate Returns





2025 your own income. Don’t include any amount


Form W-2G withheld from your spouse’s income. However,



When you file your 2025 income tax return, take munity property state. may have withheld income tax. If tax was with-credit for all the income tax and excess social If you had gambling winnings in 2025, the payer different rules may apply if you live in a com-

security or railroad retirement tax withheld from showing the amount you won and the amount of chapter 1. For more information on these rules, your salary, wages, pensions, etc. Also take held, the payer will give you a Form W-2G Community property states are listed in

credit for the estimated tax you paid for 2025. ity Property. Report the amounts you won on Schedule 1 These credits are subtracted from your total tax. tax withheld. and some exceptions, see Pub. 555, Commun-

Because these credits are refundable, you Form 1040 or 1040-SR, line 25c. (Form 1040). Take credit for the tax withheld on Estimated Tax should file a return and claim these credits,



Two or more employers. If you had two or for 2025 on Form 1040 or 1040-SR, line 26. In-Most forms in the 1099 series aren’t filed with more employers in 2025 and were paid wages even if you don’t owe tax. The 1099 Series Take credit for all your estimated tax payments of more than $176,100, too much social secur- your return. These forms should be furnished to clude any overpayment from 2024 that you had ity or tier 1 railroad retirement tax may have you by February 2, 2026 (or, for Form 1099-B, credited to your 2025 estimated tax. been withheld from your pay. You may be able Form 1099-DA, Form 1099-S, and certain Name changed. If you changed your name,

to claim the excess as a credit against your in- Forms 1099-MISC, by February 17, 2026). Un- and you made estimated tax payments using

come tax when you file your return. See the In- less instructed to file any of these forms with your former name, attach a brief statement to

structions for Form 1040 for more information. your return, keep them for your records. There the front of your paper tax return indicating:



Withholding are several different forms in this series, which • When you made the payments, are not listed. See the instructions for the spe-• The amount of each payment, cific Form 1099 for more information. If you had income tax withheld during 2025, you Form 1099-R. Attach Form 1099-R to your pa- • Your name when you made the payments,

should be sent a statement by February 2, per return if box 4 shows federal income tax and 2026, showing your income and the tax with- withheld. Include the amount withheld in the to- • Your SSN.

held. Depending on the source of your income, tal on line 25b of Form 1040 or 1040-SR. The statement should cover payments you you should receive: Backup withholding. If you were subject to made jointly with your spouse as well as any



Forms W-2 and W-2G. If you file a paper re-• backup withholding on income you received you made separately. Form W-2; during 2025, include the amount withheld, as Be sure to report the change to the Social • Form W-2G; or shown on your Form 1099, in the total on Security Administration before filing your return. • A form in the 1099 series. line 25b of Form 1040 or 1040-SR. This prevents delays in processing your return and issuing any refunds. Form Not Correct turn, always file Form W-2 with your income tax Separate Returns return. File Form W-2G with your return only if it If you receive a form with incorrect information shows any federal income tax withheld from on it, you should ask the payer for a corrected If you and your spouse made separate estima-your winnings. form. Call the telephone number or write to the ted tax payments for 2025 and you file separate

You should get at least two copies of each address given for the payer on the form. The returns, you can take credit only for your own

form. If you file a paper return, attach one copy corrected Form W-2G or Form 1099 you receive payments. to the front of your federal income tax return. will have an “X” in the “CORRECTED” box at the If you made joint estimated tax payments, Keep one copy for your records. You should top of the form. A special form, Form W-2c, Cor- you must decide how to divide the payments also receive copies to file with your state and lo- rected Wage and Tax Statement, is used to cor- between your returns. One of you can claim all cal returns. rect a Form W-2. of the estimated tax paid and the other none, or



Form W-2 forms in place of the original incorrect form. This If you can’t agree, you must divide the pay-will happen when your TIN is wrong or missing, In certain situations, you will receive two you can divide it in any other way you agree on.

Your employer is required to provide or send your name and address are wrong, or you re- ments in proportion to each spouse’s individual



You should receive a separate Form W-2 from Form 1099-DIV, Dividends and Distributions, in-each employer you worked for. Divorced Taxpayers stead of a Form 1099-INT, Interest Income). If you stopped working before the end of Form W-2 to you no later than February 2, 2026. ceived the wrong type of form (for example, a tax as shown on your separate returns for 2025.

2025, your employer could have given you your 2025, and you were divorced during the year, correct form or have the same incorrect infor- Form W-2 at any time after you stopped work- One new form you receive will be the same in- If you made joint estimated tax payments for

mation, but all money amounts will be zero. This either you or your former spouse can claim all of

ing. However, your employer must provide or the joint payments, or you each can claim part form will have an “X” in the “CORRECTED” box

send it to you by February 2, 2026. of them. If you can’t agree on how to divide the at the top of the form. The second new form

If you ask for the form, your employer must payments, you must divide them in proportion to should have all the correct information, pre-

send it to you within 30 days after receiving your each spouse’s individual tax as shown on your pared as though it is the original (the “COR-

written request or within 30 days after your final separate returns for 2025. RECTED” box won’t be checked). wage payment, whichever is later. If you claim any of the joint payments on

If you haven’t received your Form W-2 by your tax return, enter your former spouse’s so- Form Received After Filing

February 2, you should ask your employer for it. cial security number (SSN) in the space provi-

If you don’t receive it by early February, call the If you file your return and you later receive a ded on the front of Form 1040 or 1040-SR. If



IRS. form for income that you didn’t include on your you divorced and remarried in 2025, enter your Form W-2 shows your total pay and other return, you should report the income and take present spouse’s SSN in the space provided on credit for any income tax withheld by filing Form compensation and the income tax, social secur- the front of Form 1040 or 1040-SR. Also, on the

ity tax, and Medicare tax that was withheld dur- 1040-X, Amended U.S. Individual Income Tax dotted line next to line 26, enter your former ing the year. Include the federal income tax Return. spouse’s SSN, followed by “DIV.” withheld (as shown in box 2 of Form W-2) on

Form 1040 or 1040-SR, line 25a.

44 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2025) Underpayment Penalty your 2025 filing status is married filing sep- Farmers and fishers. Special rules apply if

arately) and you paid all required estima- you are a farmer or fisher. See the Instructions

for 2025 ted tax payments on time. for Form 2210-F for more information.

• The tax balance due on your 2025 return is The IRS can figure the penalty for you. If

If you didn’t pay enough tax, either through with- no more than 10% of your total 2025 tax, you think you owe the penalty but you don’t

holding or by making timely estimated tax pay- and you paid all required estimated tax want to figure it yourself when you file your tax



mated tax and you may have to pay a penalty. will figure the penalty for you and send you a • Your total 2025 tax minus your withholding bill. However, if you think you are able to lower and refundable credits is less than $1,000. ments, you will have an underpayment of esti- payments on time. return, you may not have to. Generally, the IRS



for 2025 if any of the following apply. Generally, you won’t have to pay a penalty or eliminate your penalty, you must complete • You didn’t have a tax liability for 2024 and Form 2210 or Form 2210-F and attach it to your your 2024 tax year was 12 months. • The total of your withholding and estimated paper return. See the Instructions for Form tax payments was at least as much as your • You didn’t have any withholding taxes and 2210 for more information.

2024 tax (or 110% of your 2024 tax if your your current-year tax less any household AGI was more than $150,000: $75,000 if employment taxes is less than $1,000.



Publication 17 (2025) Chapter 4 Tax Withholding and Estimated Tax 45 Part Two.





Income and The five chapters in this part discuss many kinds of income and


adjustments to income. They explain which income is and isn’t taxed and

Adjustments to discuss some of the adjustments to income that you can make in figuring

your adjusted gross income.



Income The Form 1040 and 1040-SR schedules that are discussed in these chapters are:

• Schedule 1, Additional Income and Adjustments to Income;

• Schedule 2, Part II, Other Taxes; and

• Schedule 3, Part II, Other Payments and Refundable Credits.



Table V. Other Adjustments to Income

Use this table to find information about other adjustments to income not covered in this part of the publication.

IF you are looking for more information about the THEN see... deduction for...

contributions to a health savings account Pub. 969, Health Savings Accounts and Other Tax-Favored

Health Plans.

moving expenses Pub. 3, Armed Forces’ Tax Guide.

part of your self-employment tax chapter 11.

self-employed health insurance Pub. 502, Medical and Dental Expenses.

payments to self-employed SEP, SIMPLE, and qualified plans Pub. 560, Retirement Plans for Small Business.

penalty on the early withdrawal of savings chapter 6.

contributions to an Archer MSA Pub. 969.

reforestation amortization or expense chapters 4 and 7 of Pub. 225, Farmer’s Tax Guide.

contributions to Internal Revenue Code section 501(c)(18)(D) Pub. 525, Taxable and Nontaxable Income. pension plans

expenses from the rental of personal property chapter 8.

certain required repayments of supplemental unemployment chapter 8.

benefits (sub-pay)

foreign housing costs chapter 4 of Pub. 54, Tax Guide for U.S. Citizens and Resident

Aliens Abroad.

jury duty pay given to your employer chapter 8.

contributions by certain ministers or chaplains to Internal Pub. 517, Social Security and Other Information for Members of

Revenue Code section 403(b) plans the Clergy and Religious Workers.

attorney fees and certain costs for actions involving IRS awards Pub. 525.

to whistleblowers



46 Chapter 4 Tax Withholding and Estimated Tax Publication 17 (2025)





3920 3920 Tax Relief for Victims of Terrorist Babysitting. If you’re paid to babysit, even




5. Attacks for relatives or neighborhood children, whether

For these and other useful items, go to IRS.gov/ for childcare providers apply to you. on a regular basis or only periodically, the rules

Forms.



Wages, Salaries, Self-employment tax. Whether you’re an em- Employee ployee or self-employed person, your income could be subject to self-employment tax. See

and Other Compensation the instructions for Schedules C and SE (Form 1040) if you’re self-employed. Also, see Pub.



Earnings This section discusses various types of em- 926 for more information.

ployee compensation, including fringe benefits, Miscellaneous retirement plan contributions, stock options,

and restricted property. Compensation

What’s New Form W-2. If you’re an employee, you should receive a Form W-2 from your employer show- This section discusses different types of em-



increased. If you participate in a 401(k) plan, If you receive advance commissions or other In some instances, your employer isn’t re- 403(b) plan, or the federal government’s Thrift amounts for services to be performed in the fu- quired to give you a Form W-2. Your employer Savings Plan, the total annual amount you can ture and you’re a cash-method taxpayer, you isn’t required to give you a Form W-2 if you per- contribute for 2025 is increased to: must include these amounts in your income in form household work in your employer’s home Deferred compensation contribution limit clude your pay on Form 1040 or 1040-SR, Advance commissions and other earnings. line 1a, even if you don’t receive a Form W-2. ing the pay you received for your services. In- ployee compensation.



This also applies to most section 457 plans. • the year you receive them. $23,500, for less than $2,800 in cash wages during the If you repay unearned commissions or other • $31,000 if age 50 or older, or calendar year and you have no federal income amounts in the same year you receive them, re-taxes withheld from your wages. Household • $37,750 if age 60 through 63 at the end of duce the amount included in your income by the work is work done in or around an employer’s 2025. repayment. If you repay them in a later tax year, home. Some examples of workers who do you can deduct the repayment as an itemized household work are: deduction on your Schedule A (Form 1040), Health flexible spending arrangements • Babysitters, line 16, or you may be able to take a credit for



(health FSAs) under cafeteria plans. For tax that year. See Repayments in chapter 8. • Butlers, years beginning in 2025, the dollar limitation un-• Caretakers, Allowances and reimbursements. If you re-der section 125(i) on voluntary employee salary ceive travel, transportation, or other business reductions for contributions to health FSAs is • Cooks, expense allowances or reimbursements from $3,300. • Domestic workers, your employer, see Pub. 463, Travel, Gift, and



Introduction • Car Expenses. If you’re a member of the military Drivers, and you’re reimbursed for moving expenses, • Health aides, see Pub. 521, Moving Expenses.



This chapter discusses compensation received • Housecleaning workers, Back pay awards. If you receive an amount in for services as an employee, such as wages, • Housekeepers, payment of a settlement or judgment for back salaries, and fringe benefits. The following top-pay, you must include the amount of the pay-ics are included. • Maids, ment in your income. This includes payments • Nannies, • Bonuses and awards. made to you for damages, unpaid life insurance premiums, and unpaid health insurance premi-• Private nurses, and • Special rules for certain employees. ums. They should be reported to you by your • Yard workers. • Sickness and injury benefits. employer on Form W-2.

The chapter explains what income is inclu- See Schedule H (Form 1040), Household Bonuses and awards. If you receive a bonus

ded and isn’t included in the employee’s gross Employment Taxes, and its instructions, and or award (cash, goods, services, etc.) from your income. Pub. 926 for more information. employer, you must include its value in your in-



You may want to see: time, it isn’t taxable until you receive it or it’s taxes from your pay, you must file Form 8919, made available to you. Uncollected Social Security and Medicare Tax Publication Employee achievement award. If you re- on Wages, with your Form 1040 or 1040-SR. ceive tangible personal property (other than Useful Items independent contractor, and your employer ises to pay you a bonus or award at some future didn’t withhold social security and Medicare If you performed services, other than as an come. However, if your employer merely prom- 463 See Form 8919 and its instructions for more in-463 Travel, Gift, and Car Expenses cash, a gift certificate, or an equivalent item) as formation on how to figure unreported wages an award for length of service or safety achieve- 502 502 Medical and Dental Expenses and taxes and how to include them on your in-ment, you can generally exclude its value from come tax return. 524 524 Credit for the Elderly or the Disabled your income. The amount you can exclude is Childcare providers. If you provide childcare, limited to your employer’s cost and can’t be 525 525 Taxable and Nontaxable Income either in the child’s home or in your home or more than $1,600 for qualified plan awards or other place of business, the pay you receive 526 526 $400 for nonqualified plan awards for all such Charitable Contributions must be included in your income. If you aren’t awards you receive during the year. Your em- 550 550 Investment Income and Expenses an employee, you’re probably self-employed ployer can tell you whether your award is a and must include payments for your services on qualified plan award. Your employer must make 554 554 Tax Guide for Seniors Schedule C (Form 1040), Profit or Loss From the award as part of a meaningful presentation, Business. You generally aren’t an employee un-

575 575 Pension and Annuity Income under conditions and circumstances that don’t

less you’re subject to the will and control of the create a significant likelihood of it being dis-

907 907 Tax Highlights for Persons With person who employs you as to what you’re to do guised pay.

Disabilities and how you’re to do it.

926 926 Household Employer’s Tax Guide

Publication 17 (2025) Chapter 5 Wages, Salaries, and Other Earnings 47

However, the exclusion doesn’t apply to the payments on the note that are credited toward Fringe Benefits

following awards. the principal amount of the note are compensa-



achievement awards during the year: a nonqua-• tion income when you receive them. Fringe benefits received in connection with the A length-of-service award if you received it performance of your services are included in for less than 5 years of service or if you re- Severance pay. If you receive a severance your income as compensation unless you pay ceived another length-of-service award payment when your employment with your em- fair market value for them or they’re specifically during the year or the previous 4 years. ployer ends or is terminated, you must include excluded by law. Refraining from the perform- this amount in your income. • A safety achievement award if you’re a ance of services (for example, under a covenant manager, administrator, clerical employee, Accrued leave payment. If you’re a federal not to compete) is treated as the performance or other professional employee or if more employee and receive a lump-sum payment for of services for purposes of these rules. than 10% of eligible employees previously accrued annual leave when you retire or resign, Accounting period. You must use the same received safety achievement awards dur- this amount will be included as wages on your accounting period your employer uses to report ing the year. Form W-2. your taxable noncash fringe benefits. Your em- If you resign from one agency and are reem- Example. You received three employee ployer has the option to report taxable noncash ployed by another agency, you may have to re- fringe benefits by using either of the following pay part of your lump-sum annual leave pay- lified plan award of a watch valued at $250, two rules. ment to the second agency. You can reduce qualified plan awards of a stereo valued at gross wages by the amount you repaid in the • The general rule: benefits are reported for $1,000, and a set of golf clubs valued at $500. same tax year in which you received it. Attach to a full calendar year (January 1–December Assuming that the requirements for qualified your tax return a copy of the receipt or state- 31). plan awards are otherwise satisfied, each award ment given to you by the agency you repaid to • The special accounting period rule: bene- by itself would be excluded from income. How- explain the difference between the wages on fits provided during the last 2 months of the ever, because the $1,750 total value of the the return and the wages on your Forms W-2. calendar year (or any shorter period) are awards is more than $1,600, you must include Outplacement services. If you choose to treated as paid during the following calen- $150 ($1,750 – $1,600) in your income. accept a reduced amount of severance pay so dar year, for example, each year your em- Differential wage payments. This is any pay- that you can receive outplacement services ployer reports the value of benefits provi- ment made to you by an employer for any pe- (such as training in résumé writing and inter- ded during the last 2 months of the prior riod during which you are, for a period of more view techniques), you must include the unre- year and the first 10 months of the current than 30 days, an active duty member of the uni- duced amount of the severance pay in income. year. formed services and represents all or a portion Your employer doesn’t have to use the same ac- Sick pay. Pay you receive from your employer of the wages you would have received from the counting period for each fringe benefit, but must while you’re sick or injured is part of your salary employer during that period. These payments use the same period for all employees who re- or wages. In addition, you must include in your are treated as wages and are subject to income ceive a particular benefit. income sick pay benefits received from any of tax withholding but not FICA or FUTA tax. The the following payers. You must use the same accounting period payments are reported as wages on Form W-2. that you use to report the benefit to claim an • A welfare fund. Government cost-of-living allowances. employee business deduction (for use of a car, Most payments received by U.S. Government • A state sickness or disability fund. for example). civilian employees for working abroad are taxa- • An association of employers or employees. Form W-2. Your employer must include all tax- ble. However, certain cost-of-living allowances able fringe benefits in box 1 of Form W-2 as wa- are tax free. Pub. 516, U.S. Government Civilian • An insurance company if your employer ges, tips, and other compensation and, if appli- Employees Stationed Abroad, explains the tax paid for the plan. cable, in boxes 3 and 5 as social security and treatment of allowances, differentials, and other However, if you paid the premiums on an acci- Medicare wages. Although not required, your special pay you receive for employment abroad. dent or health insurance policy yourself, the employer may include the total value of fringe Nonqualified deferred compensation plans. benefits you receive under the policy aren’t tax- benefits in box 14 (or on a separate statement). Your employer may report to you the total able. For more information, see Pub. 525, Taxa- However, if your employer provided you with a ble and Nontaxable Income. amount of deferrals for the year under a non- vehicle and included 100% of its annual lease qualified deferred compensation plan in box 12 value in your income, the employer must sepa- Social security and Medicare taxes paid by of Form W-2, using code Y. This amount isn’t in- rately report this value to you in box 14 (or on a employer. If you and your employer have an cluded in your income. separate statement). agreement that your employer pays your social However, if at any time during the tax year, security and Medicare taxes without deducting the plan fails to meet certain requirements, or them from your gross wages, you must report Accident or Health Plan isn’t operated under those requirements, all the amount of tax paid for you as taxable wages In most cases, the value of accident or health amounts deferred under the plan for the tax on your tax return. The payment is also treated plan coverage provided to you by your employer year and all preceding tax years to the extent as wages for figuring your social security and isn’t included in your income. Benefits you re- vested and not previously included in income Medicare taxes and your social security and ceive from the plan may be taxable, as ex- are included in your income for the current year. Medicare benefits. However, these payments plained later under Sickness and Injury Bene- This amount is included in your wages shown in aren’t treated as social security and Medicare fits . box 1 of Form W-2. It’s also shown in box 12 of wages if you’re a household worker or a farm Form W-2, using code Z. For information on the items covered in this worker. section, other than long-term care coverage, Note received for services. If your employer Stock appreciation rights. Don’t include a see Pub. 969, Health Savings Accounts and gives you a secured note as payment for your stock appreciation right granted by your em- Other Tax-Favored Health Plans. services, you must include the fair market value ployer in income until you exercise (use) the (usually the discount value) of the note in your Long-term care coverage. Contributions by right. When you use the right, you’re entitled to income for the year you receive it. When you your employer to provide coverage for long-term a cash payment equal to the fair market value of later receive payments on the note, a propor- care services generally aren’t included in your the corporation’s stock on the date of use minus tionate part of each payment is the recovery of income. However, contributions made through a the fair market value on the date the right was the fair market value that you previously inclu- flexible spending or similar arrangement offered granted. You include the cash payment in your ded in your income. Don’t include that part by your employer must be included in your in- income in the year you use the right. again in your income. Include the rest of the come. This amount will be reported as wages in box 1 of Form W-2. payment in your income in the year of payment.

If your employer gives you a nonnegotiable

unsecured note as payment for your services,

48 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2025)

Contributions you make to the plan are dis- See the Instructions for Form 8839, Qualified doesn’t provide general death benefits (travel

cussed in Pub. 502, Medical and Dental Expen- Adoption Expenses, for more information. insurance, for example) isn’t group-term life in-ses. Adoption benefits are reported by your em- surance.



Archer MSA contributions. Contributions by ployer in box 12 of Form W-2, with code T. They Former employer. If your former employer are also included as social security and Medi-your employer to your Archer MSA generally provided more than $50,000 of group-term life care wages in boxes 3 and 5. However, they aren’t included in your income. Their total will be insurance coverage during the year, the amount aren’t included as wages in box 1. To determine reported in box 12 of Form W-2, with code R. included in your income is reported as wages in the taxable and nontaxable amounts, you must You must report this amount on Form 8853, box 1 of Form W-2. Also, it’s shown separately complete Part III of Form 8839. File the form Archer MSAs and Long-Term Care Insurance in box 12 with code C. Box 12 will also show the with your return. Contracts. File the form with your return. amount of uncollected social security and Medi-



Health flexible spending arrangement care taxes on the excess coverage, with codes De Minimis (Minimal) Benefits M and N. You must pay these taxes with your in- (health FSA). If your employer provides a come tax return. Include them on Schedule 2 If your employer provides you with a product or health FSA that qualifies as an accident or (Form 1040), line 13. service and the cost of it is so small that it would health plan, the amount of your salary reduc- be unreasonable for the employer to account for tion, and reimbursements of your medical care Two or more employers. Your exclusion for it, you generally don’t include its value in your expenses, in most cases, aren’t included in your employer-provided group-term life insurance income. In most cases, don’t include in your in- income. coverage can’t exceed the cost of $50,000 of come the value of discounts at company cafete- coverage, whether the insurance is provided by rias, cab fares home when working overtime, Note: Health FSAs are subject to a limit on a single employer or multiple employers. If two and company picnics. salary reduction contributions for plan years be- or more employers provide insurance coverage ginning after 2012. For tax years beginning in that totals more than $50,000, the amounts re- Holiday gifts. If your employer gives you a tur- 2025, the dollar limitation (as indexed for infla- ported as wages on your Forms W-2 won’t be key, ham, or other item of nominal value at tion) on voluntary employee salary reductions correct. You must figure how much to include in Christmas or other holidays, don’t include the for contributions to health FSAs is $3,300. your income. Reduce the amount you figure by value of the gift in your income. However, if your any amount reported in box 12 of Form W-2, employer gives you cash or a cash equivalent, Health reimbursement arrangement (HRA). with code C, add the result to the wages repor- you must include it in your income. If your employer provides an HRA that qualifies ted in box 1, and report the total on your return. as an accident or health plan, coverage and re-



generally aren’t included in your income. 5-1 to figure the amount to include in your in-You can exclude from your income up to $5,250 come. imbursements of your medical care expenses Educational Assistance Figuring the taxable cost. Use Worksheet Health savings account (HSA). If you’re an of qualified employer-provided educational as-eligible individual, you and any other person, in- sistance. For more information, see Pub. 970, cluding your employer or a family member, can Tax Benefits for Education. make contributions to your HSA. Contributions,



other than employer contributions, are deducti- Group-Term Life Insurance ble on your return whether or not you itemize In most cases, the cost of up to $50,000 of deductions. Contributions made by your em-group-term life insurance coverage provided to ployer aren’t included in your income. Distribu-you by your employer (or former employer) isn’t tions from your HSA that are used to pay quali-included in your income. However, you must in-fied medical expenses aren’t included in your clude in income the cost of employer-provided income. Distributions not used for qualified insurance that is more than the cost of $50,000 medical expenses are included in your income. of coverage reduced by any amount you pay to-See Pub. 969 for the requirements of an HSA. ward the purchase of the insurance. Contributions by a partnership to a bona fide For exceptions, see Entire cost excluded partner’s HSA aren’t contributions by an em-and Entire cost taxed , later. ployer. The contributions are treated as a distri-If your employer provided more than bution of money and aren’t included in the part-$50,000 of coverage, the amount included in ner’s gross income. Contributions by a your income is reported as part of your wages in partnership to a partner’s HSA for services ren-box 1 of Form W-2. Also, it’s shown separately dered are treated as guaranteed payments that in box 12 with code C. are includible in the partner’s gross income. In



both situations, the partner can deduct the con- Group-term life insurance. This insurance is tribution made to the partner’s HSA. term life insurance protection (insurance for a Contributions by an S corporation to a 2% fixed period of time) that: shareholder-employee’s HSA for services ren-• Provides a general death benefit, dered are treated as guaranteed payments and • are includible in the shareholder-employee’s Is provided to a group of employees, gross income. The shareholder-employee can • Is provided under a policy carried by the deduct the contribution made to the share-employer, and holder-employee’s HSA. • Provides an amount of insurance to each employee based on a formula that prevents Qualified HSA funding distribution. You individual selection. can make a one-time distribution from your indi-



vidual retirement account (IRA) to an HSA and Permanent benefits. If your group-term life you generally won’t include any of the distribu-insurance policy includes permanent benefits, tion in your income. such as a paid-up or cash surrender value, you

Adoption Assistance must include in your income, as wages, the cost

of the permanent benefits minus the amount

You may be able to exclude from your income you pay for them. Your employer should be able amounts paid or expenses incurred by your em- to tell you the amount to include in your income.

ployer for qualified adoption expenses in con- Accidental death benefits. Insurance that nection with your adoption of an eligible child. provides accidental or other death benefits but

Publication 17 (2025) Chapter 5 Wages, Salaries, and Other Earnings 49

Group-Term Life Insurance To Include in In- Entire cost taxed. You’re taxed on the entire



Worksheet 5-1. Figuring the come—Illustrated next. cost of group-term life insurance if either of the following circumstances apply. Cost of Group-Term Life Worksheet 5-1. Figuring the • The insurance is provided by your em- Insurance To Include in Cost of Group-Term Life ployer through a qualified employees’ trust, Income such as a pension trust or a qualified annu- Insurance To Include in Keep for Your Records ity plan. Income—Illustrated 1. Enter the total amount of • You’re a key employee and your employer’s Keep for Your Records your insurance coverage plan discriminates in favor of key employ- from your 1. Enter the total amount of ees. employer(s) . . . . . . . . . . . . 1. your insurance coverage 2. Limit on exclusion for from your employer-provided employer(s) . . . . . . . . . . . . 1. 80,000 Retirement Planning Services group-term life insurance 2. Limit on exclusion for Generally, don’t include the value of qualified re- coverage . . . . . . . . . . . . . . 2. 50,000 employer-provided tirement planning services provided to you and 3. Subtract line 2 from group-term life insurance your spouse by your employer’s qualified retire- line 1 . . . . . . . . . . . . . . . . . 3. coverage . . . . . . . . . . . . . . 2. 50,000 ment plan. Qualified services include retirement 4. Divide line 3 by $1,000. 3. Subtract line 2 from Figure to the nearest planning advice, information about your em- line 1 . . . . . . . . . . . . . . . . . 3. 30,000 tenth . . . . . . . . . . . . . . . . . 4. ployer’s retirement plan, and information about 4. Divide line 3 by $1,000. 5. Go to Table 5-1 . Using your how the plan may fit into your overall individual Figure to the nearest age on the last day of the tax 30.0 tenth . . . . . . . . . . . . . . . . . 4. retirement income plan. You can’t exclude the year, find your age group in value of any tax preparation, accounting, legal, 5. Go to Table 5-1 . Using your the left column, and enter the age on the last day of the tax or brokerage services provided by your em- cost from the column on the year, find your age group in ployer. right for your age the left column, and enter the group . . . . . . . . . . . . . . . . 5. cost from the column on the 6. Multiply line 4 by right for your age Transportation line 5 . . . . . . . . . . . . . . . . . 6. 0.23 group . . . . . . . . . . . . . . . . 5. If your employer provides you with a qualified 7. Enter the number of full 6. Multiply line 4 by transportation fringe benefit, it can be excluded months of coverage at this 6.90 line 5 . . . . . . . . . . . . . . . . . 6. cost . . . . . . . . . . . . . . . . . . 7. from your income, up to certain limits. A quali- 7. Enter the number of full fied transportation fringe benefit is: 8. Multiply line 6 by months of coverage at this line 7 . . . . . . . . . . . . . . . . . 8. 12 cost . . . . . . . . . . . . . . . . . . 7. • Transportation in a commuter highway ve- 9. Enter the 8. Multiply line 6 by hicle (such as a van) between your home premiums you paid 82.80 line 7 . . . . . . . . . . . . . . . . . 8. and work place, per month . . . . . 9. 9. Enter the 10. Enter the number • A transit pass, or premiums you paid of months you paid per month . . . . . 9. 4.15 • Qualified parking. the 10. Enter the number premiums . . . . . 10. of months you paid Cash reimbursement by your employer for these 11. Multiply line 9 by the expenses under a bona fide reimbursement ar- line 10 . . . . . . . . . . . . . . . . 11. 12 premiums . . . . . 10. rangement is also excludable. However, cash 12. Subtract line 11 from line 8. 11. Multiply line 9 by reimbursement for a transit pass is excludable Include this amount in line 10 . . . . . . . . . . . . . . . . 11. 49.80 only if a voucher or similar item that can be ex- your income as 12. Subtract line 11 from line 8. changed only for a transit pass isn’t readily wages . . . . . . . . . . . . . . . 12. Include this amount in available for direct distribution to you. your income as wages . . . . . . . . . . . . . . . 12. 33.00 Exclusion limit. The exclusion for commuter Table 5-1. Cost of $1,000 of vehicle transportation and transit pass fringe Group-Term Life Insurance for 1 Entire cost excluded. You aren’t taxed on the benefits can’t be more than $325 a month. Month cost of group-term life insurance if any of the fol- The exclusion for the qualified parking fringe lowing circumstances apply. benefit can’t be more than $325 a month. Age Cost 1. You’re permanently and totally disabled If the benefits have a value that is more than Under 25 . . . . . . . . . . . . . . . . . $ 0.05 and have ended your employment. these limits, the excess must be included in 25 through 29 . . . . . . . . . . . . . . 0.06 your income. 2. Your employer is the beneficiary of the pol- 30 through 34 . . . . . . . . . . . . . . 0.08 icy for the entire period the insurance is in Commuter highway vehicle. This is a high- 35 through 39 . . . . . . . . . . . . . . 0.09 force during the tax year. way vehicle that seats at least six adults (not in- 40 through 44 . . . . . . . . . . . . . . 0.10 cluding the driver). At least 80% of the vehicle’s 45 through 49 . . . . . . . . . . . . . . 0.15 3. A charitable organization (defined in Pub. mileage must reasonably be expected to be: 50 through 54 . . . . . . . . . . . . . . 0.23 526, Charitable Contributions) to which • 55 through 59 . . . . . . . . . . . . . . 0.43 contributions are deductible is the only For transporting employees between their homes and workplace, and 60 through 64 . . . . . . . . . . . . . . 0.66 beneficiary of the policy for the entire pe-

65 through 69 . . . . . . . . . . . . . . 1.27 riod the insurance is in force during the tax • On trips during which employees occupy at

70 and above . . . . . . . . . . . . . . 2.06 year. (You aren’t entitled to a deduction for least half of the vehicle’s adult seating ca-



for two employers, Green Company and Maple Example. You are 51 years old and work charitable organization as the beneficiary Transit pass. This is any pass, token, farecard, of your policy.) a charitable contribution for naming a pacity (not including the driver).

voucher, or similar item entitling a person to ride



Company and $45,000 with Maple Company. and were covered by the plan when ness of transporting persons for compensation. you retired, or You pay premiums of $4.15 a month under the Qualified parking. This is parking provided to Maple Company group plan. You figure the b. You reached age 55 before January 2, an employee at or near the employer’s place of amount to include in your income as shown in 1984, and were employed by the em-business. It also includes parking provided on life insurance coverage for you for the entire at a reduced rate or to ride in a commuter high- a. You retired before January 2, 1984, year. Your coverage is $35,000 with Green way vehicle operated by a person in the busi- Company. Both employers provide group-term 4. The plan existed on January 1, 1984, and: mass transit (whether public or private) free or

Worksheet 5-1. Figuring the Cost of ployer or its predecessor in 1983.

50 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2025) or near a location from which the employee contribution arrangement. The notice must ex- in your income in the year you receive the prop-commutes to work by mass transit, in a com- plain: erty. However, if you receive stock or other



muter highway vehicle, or by carpool. It doesn’t property that is nontransferable or subject to a • Your rights to elect not to have elective include parking at or near the employee’s home. substantial risk of forfeiture, you don’t include contributions made, or to have contribu- the value of the property in your income until it tions made at a different percentage; and becomes substantially vested. (Although you Retirement Plan • How contributions made will be invested in can elect to include the value of the property in Contributions the absence of any investment decision by your income in the year it becomes transferred you. to you.) For more information, see Restricted Your employer’s contributions to a qualified re- Property in Pub. 525. You must be given a reasonable period of tirement plan for you aren’t included in income time after receipt of the notice and before the Dividends received on restricted stock. at the time contributed. (Your employer can tell first elective contribution is made to make an Dividends you receive on restricted stock are you whether your retirement plan is qualified.) election with respect to the contributions. treated as compensation and not as dividend However, the cost of life insurance coverage in- income. Your employer should include these cluded in the plan may have to be included. See Overall limit on deferrals. For 2025, in payments on your Form W-2. Group-Term Life Insurance , earlier, under most cases, you shouldn’t have deferred more Fringe Benefits. than a total of $23,500 of contributions to the Stock you elected to include in income. If your employer pays into a nonqualified plans listed in (1) through (3) and (5) above. Dividends you receive on restricted stock you plan for you, you must generally include the The limit for SIMPLE plans is $16,500. The limit elected to include in your income in the year contributions in your income as wages for the for section 501(c)(18)(D) plans is the lesser of transferred are treated the same as any other tax year in which the contributions are made. $7,000 or 25% of your compensation. The limit dividends. Report them on your return as divi- However, if your interest in the plan isn’t trans- for section 457 plans is the lesser of your in- dends. For a discussion of dividends, see Pub. ferable or is subject to a substantial risk of for- cludible compensation or $23,500. Amounts 550, Investment Income and Expenses. feiture (you have a good chance of losing it) at deferred under specific plan limits are part of For information on how to treat dividends re- the time of the contribution, you don’t have to in- the overall limit on deferrals. ported on both your Form W-2 and Form clude the value of your interest in your income 1099-DIV, see Dividends received on restricted until it’s transferable or is no longer subject to a Designated Roth contributions. Employ- stock in Pub. 525. substantial risk of forfeiture. ers with section 401(k) plans, section 403(b) plans, and governmental section 457 plans can For information on distributions from re- create qualified Roth contribution programs so Special Rules for TIP tirement plans, see Pub. 575, Pension that you may elect to have part or all of your and Annuity Income (or Pub. 721, Tax elective deferrals to the plan designated as af- Certain Employees Guide to U.S. Civil Service Retirement Benefits, ter-tax Roth contributions. Designated Roth if you’re a federal employee or retiree). This section deals with special rules for people contributions are treated as elective deferrals, in certain types of employment: members of the except that they’re included in income at the Elective deferrals. If you’re covered by certain clergy, members of religious orders, people time contributed. kinds of retirement plans, you can choose to working for foreign employers, military person- have part of your compensation contributed by Excess deferrals. Your employer or plan nel, and volunteers. your employer to a retirement fund, rather than administrator should apply the proper annual have it paid to you. The amount you set aside limit when figuring your plan contributions. How- (called an elective deferral) is treated as an em- Clergy ever, you’re responsible for monitoring the total ployer contribution to a qualified plan. An elec- you defer to ensure that the deferrals aren’t tive deferral, other than a designated Roth con- Generally, if you’re a member of the clergy, you more than the overall limit. tribution (discussed later), isn’t included in must include in your income offerings and fees If you set aside more than the limit, the ex- you receive for marriages, baptisms, funerals, wages subject to income tax at the time contrib- cess must generally be included in your income uted. Rather, it’s subject to income tax when masses, etc., in addition to your salary. If the of- for that year, unless you have an excess deferral distributed from the plan. However, it’s included fering is made to the religious institution, it isn’t of a designated Roth contribution. See Pub. 525 in wages subject to social security and Medi- taxable to you. for a discussion of the tax treatment of excess care taxes at the time contributed. If you’re a member of a religious organiza- deferrals. Elective deferrals include elective contribu- tion and you give your outside earnings to the Catch-up contributions. You may be al- religious organization, you must still include the tions to the following retirement plans. lowed catch-up contributions (additional elec- earnings in your income. However, you may be 1. Cash or deferred arrangements (section tive deferral) if you’re age 50 or older by the end entitled to a charitable contribution deduction 401(k) plans). of the tax year. For more information, see Pub. for the amount paid to the organization. See

2. The Thrift Savings Plan for federal employ- 525. Pub. 526.



3. Salary reduction simplified employee pen- Stock Options member of the clergy is usually treated as any other pension or annuity. It must be reported on ees. Pension. A pension or retirement pay for a

sion plans (SARSEP).



ments. Under a qualified automatic contribu-6. Section 501(c)(18)(D) plans. option (use it to buy or sell the stock or other a home (including utilities) or a designated property), or when you sell or otherwise dispose housing allowance provided to you as part of of the option. However, if your option is a statu- your pay. However, the exclusion can’t be more 7. Section 457 plans. tory stock option, you won’t have any income than the reasonable pay for your services. If you until you sell or exchange your stock. Your em- pay for the utilities, you can exclude any allow- Qualified automatic contribution arrange- ployer can tell you which kind of option you ance designated for utility cost, up to your ac- hold. For more information, see Pub. 525. tual cost. The home or allowance must be provi- tion arrangement, your employer can treat you ded as compensation for your services as an 5. Tax-sheltered annuity plans (section ees (SIMPLE plans). Housing. Special rules for housing apply to services, you will usually have income when members of the clergy. Under these rules, you you receive the option, when you exercise the don’t include in your income the rental value of 403(b) plans). 4. Savings incentive match plans for employ- sell stock or other property as payment for your If you receive a nonstatutory option to buy or lines 5a and 5b of Form 1040 or 1040-SR.

pensation contributed to a section 401(k) plan. ordained, licensed, or commissioned minister. as having elected to have a part of your com- Restricted Property

You are to receive written notice of your rights However, you must include the rental value of

and obligations under the qualified automatic In most cases, if you receive property for your the home or the housing allowance as earnings

services, you must include its fair market value from self-employment on Schedule SE (Form

Publication 17 (2025) Chapter 5 Wages, Salaries, and Other Earnings 51 1040) if you’re subject to self-employment tax. and must be included in your income as a pen- Foreign Employer

For more information, see Pub. 517, Social Se- sion on lines 5a and 5b of Form 1040 or

curity and Other Information for Members of the 1040-SR. Don’t include in your income the Special rules apply if you work for a foreign em-

Clergy and Religious Workers. amount of any reduction in retirement or re- ployer.

tainer pay to provide a survivor annuity for your

Members of Religious U.S. citizen. If you’re a U.S. citizen who works spouse or children under the Retired Service-

Orders in the United States for a foreign government, man’s Family Protection Plan or the Survivor

an international organization, a foreign em- Benefit Plan.



If you’re a member of a religious order who has clude your salary in your income. nuities, see Pub. 575, Pension and Annuity In-taken a vow of poverty, how you treat earnings bassy, or any foreign employer, you must in- For more detailed discussion of survivor an-

that you renounce and turn over to the order de- Social security and Medicare taxes. come.



pends on whether your services are performed You’re exempt from social security and Medi- Disability. If you’re retired on disability, see care employee taxes if you’re employed in the for the order. Military and Government Disability Pensions un-United States by an international organization or der Sickness and Injury Benefits, later. Services performed for the order. If you’re a foreign government. However, you must pay performing the services as an agent of the order self-employment tax on your earnings from Veterans’ benefits. Don’t include in your in-in the exercise of duties required by the order, come any veterans’ benefits paid under any law, services performed in the United States, even don’t include in your income the amounts turned though you aren’t self-employed. This rule also regulation, or administrative practice adminis-over to the order. applies if you’re an employee of a qualifying tered by the Department of Veterans Affairs If your order directs you to perform services wholly owned instrumentality of a foreign gov-(VA). The following amounts paid to veterans or for another agency of the supervising church or their families aren’t taxable. ernment. an associated institution, you’re considered to • Education, training, and subsistence allow-Employees of international organizations or be performing the services as an agent of the ances. foreign governments. Your compensation for order. Any wages you earn as an agent of an or-official services to an international organization • Disability compensation and pension pay-der that you turn over to the order aren’t inclu-is exempt from federal income tax if you aren’t a ments for disabilities paid either to veter-ded in your income. citizen of the United States or you’re a citizen of ans or their families. the Philippines (whether or not you’re a citizen Example. You’re a member of a church or-• Grants for homes designed for wheelchair of the United States). der and have taken a vow of poverty. You re-living. nounce any claims to your earnings and turn Your compensation for official services to a foreign government is exempt from federal in-over to the order any salaries or wages you • Grants for motor vehicles for veterans who come tax if all of the following are true. lost their sight or the use of their limbs. earn. You’re a registered nurse, so your order

assigns you to work in a hospital that is an as- • You aren’t a citizen of the United States or • Veterans’ insurance proceeds and divi-sociated institution of the church. However, you you’re a citizen of the Philippines (whether dends paid either to veterans or their bene-



of the order. You’re considered to be an agent of an’s endowment policy paid before death. • Your work is like the work done by employ- the order and any wages you earn at the hospi- ees of the United States in foreign coun- remain under the general direction and control or not you’re a citizen of the United States). ficiaries, including the proceeds of a veter-

tal that you turn over to your order aren’t inclu- • Interest on insurance dividends you leave

ded in your income. tries. on deposit with the VA.

Services performed outside the order. If • The foreign government gives an equal ex- • Benefits under a dependent-care assis-you’re directed to work outside the order, your emption to employees of the United States tance program.



the order unless they meet both of the following member of the Armed Forces who died af- Waiver of alien status. If you’re an alien requirements. ter September 10, 2001. who works for a foreign government or interna- • services aren’t an exercise of duties required by in its country. • The death gratuity paid to a survivor of a

They’re the kind of services that are ordina- tional organization and you file a waiver under • Payments made under the compensated



• They’re part of the duties that you must ex- ity Act to keep your immigrant status, different • Any bonus payment by a state or political rules may apply. See Foreign Employer in Pub. ercise for, or on behalf of, the religious or-rily the duties of members of the order. section 247(b) of the Immigration and National- work therapy program.

der as its agent. 525. subdivision because of service in a combat zone.



If you’re an employee of a third party, the serv- Employment abroad. For information on the tax treatment of income earned abroad, see ices you perform for the third party won’t be Volunteers Pub. 54. considered directed or required of you by the

order. Amounts you receive for these services The tax treatment of amounts you receive as a Military

are included in your income, even if you have volunteer worker for the Peace Corps or similar

taken a vow of poverty. agency is covered in the following discussions.



order and have taken a vow of poverty. You re-Example. You are a member of a religious Payments you receive as a member of a military Peace Corps. Living allowances you receive service are generally taxed as wages except for as a Peace Corps volunteer or volunteer leader retirement pay, which is taxed as a pension. Al- for housing, utilities, household supplies, food, nounce all claims to your earnings and turn over lowances generally aren’t taxed. For more infor- and clothing are generally exempt from tax. your earnings to the order. mation on the tax treatment of military allowan- You are a schoolteacher. You were instruc- ces and benefits, see Pub. 3, Armed Forces’ Taxable allowances. The following allow- ted by the superiors of the order to get a job Tax Guide. ances, however, must be included in your in- with a private tax-exempt school. You became come and reported as wages. Differential wage payments. Any payments an employee of the school, and, at your re- made to you by an employer during the time • Allowances paid to your spouse and minor quest, the school made the salary payments di- you’re performing service in the uniformed serv- rectly to the order. children while you’re a volunteer leader ices are treated as compensation. These wages Because you are an employee of the school, training in the United States. are subject to income tax withholding and are you’re performing services for the school rather • Living allowances designated by the Direc- reported on a Form W-2. See the discussion than as an agent of the order. The wages you tor of the Peace Corps as basic compen- under Miscellaneous Compensation , earlier. earn working for the school are included in your sation. These are allowances for personal income. Military retirement pay. If your retirement pay items such as domestic help, laundry and

is based on age or length of service, it’s taxable clothing maintenance, entertainment and

52 Chapter 5 Wages, Salaries, and Other Earnings Publication 17 (2025)

recreation, transportation, and other mis- sickness through an accident or health plan that Accrued leave payment. If you retire on disa-cellaneous expenses. is paid for by your employer. If both you and bility, any lump-sum payment you receive for ac-



teer and get $175 a month as a readjustment al-• your employer pay for the plan, only the amount crued annual leave is a salary payment. The Leave allowances. you receive that is due to your employer’s pay- payment is not a disability payment. Include it in • Readjustment allowances or termination ments is reported as income. However, certain your income in the tax year you receive it. payments. These are considered received payments may not be taxable to you. For infor- by you when credited to your account. mation on nontaxable payments, see Military Military and Government Disability and Government Disability Pensions and Other Example. You are a Peace Corps volun- Pensions Sickness and Injury Benefits , later in this dis- cussion. Certain military and government disability pen- lowance during your period of service, to be sions aren’t taxable. Don’t report as income any amounts paid to you in a lump sum at the end of your tour paid to reimburse you for medical ex- of duty. Although the allowance isn’t available to TIP Service-connected disability. You may be penses you incurred after the plan was able to exclude from income amounts you re- you until the end of your service, you must in- established. ceive as a pension, an annuity, or similar allow- clude it in your income on a monthly basis as it’s ance for personal injury or sickness resulting credited to your account. Cost paid by you. If you pay the entire cost of from active service in one of the following gov- Volunteers in Service to America (VISTA). If a health or accident insurance plan, don’t in- ernment services. you’re a VISTA volunteer, you must include meal clude any amounts you receive from the plan for • The armed forces of any country. and lodging allowances paid to you in your in- personal injury or sickness as income on your come as wages. • The National Oceanic and Atmospheric tax return. If your plan reimbursed you for medi- Administration. cal expenses you deducted in an earlier year, National Senior Services Corps programs. you may have to include some, or all, of the re- Don’t include in your income amounts you re- • The Public Health Service. imbursement in your income. See What if You ceive for supportive services or reimbursements • The Foreign Service. Receive Insurance Reimbursement in a Later for out-of-pocket expenses from the following Year? in Pub. 502, Medical and Dental Expen- programs. Conditions for exclusion. Don’t include the ses. disability payments in your income if any of the • Retired Senior Volunteer Program (RSVP). Cafeteria plans. In most cases, if you’re cov- following conditions apply. • Foster Grandparent Program. ered by an accident or health insurance plan 1. You were entitled to receive a disability • Senior Companion Program. through a cafeteria plan, and the amount of the payment before September 25, 1975. insurance premiums wasn’t included in your in- Service Corps of Retired Executives come, you aren’t considered to have paid the 2. You were a member of a listed government (SCORE). If you receive amounts for suppor- premiums and you must include any benefits service or its reserve component, or were tive services or reimbursements for you receive in your income. If the amount of the under a binding written commitment to be- out-of-pocket expenses from SCORE, don’t in- premiums was included in your income, you’re come a member, on September 24, 1975. clude these amounts in gross income. considered to have paid the premiums, and any 3. You receive the disability payments for a Volunteer tax counseling. Don’t include in benefits you receive aren’t taxable. combat-related injury. This is a personal your income any reimbursements you receive injury or sickness that: for transportation, meals, and other expenses Disability Pensions you have in training for, or actually providing, a. Results directly from armed conflict;



volunteer federal income tax counseling for the b. Takes place while you’re engaged in If you retired on disability, you must include in elderly (TCE). extra-hazardous service; income any disability pension you receive under You can deduct as a charitable contribution a plan that is paid for by your employer. You c. Takes place under conditions simulat- your unreimbursed out-of-pocket expenses in must report your taxable disability payments on ing war, including training exercises taking part in the volunteer income tax assis- line 1h of Form 1040 or 1040-SR until you reach such as maneuvers; or tance (VITA) program. See Pub. 526. minimum retirement age. Minimum retirement d. Is caused by an instrumentality of war. Volunteer firefighters and emergency medi- age is generally the age at which you can first



fighter or emergency medical responder, don’t bled. compensation from the Department of Vet-include in your income the following benefits cal responders. If you are a volunteer fire- receive a pension or annuity if you’re not disa- 4. You would be entitled to receive disability you receive from a state or local government. You may be entitled to a tax credit if erans Affairs (VA) if you filed an applica-

TIP tion for it. Your exclusion under this condi- you were permanently and totally disa-

• Rebates or reductions of property or in- tion is equal to the amount you would be bled when you retired. For information



ices you performed as a volunteer fire- and total disability, see Pub. 524, Credit for the Pension based on years of service. If you fighter or emergency medical responder. Elderly or the Disabled. come taxes you receive because of serv- entitled to receive from the VA. on this credit and the definition of permanent

• Payments you receive because of services Beginning on the day after you reach mini- receive a disability pension based on years of service, in most cases you must include it in

you performed as a volunteer firefighter or mum retirement age, payments you receive are your income. However, if the pension qualifies

emergency medical responder, up to $50 taxable as a pension or annuity. Report the pay- for the exclusion for a service-connected disa-

for each month you provided services. ments on lines 5a and 5b of Form 1040 or bility (discussed earlier), don’t include in income

The excluded income reduces any related tax 1040-SR. The rules for reporting pensions are the part of your pension that you would have re-or contribution deduction. explained in Disability Pensions in Pub. 575. ceived if the pension had been based on a per-



Sickness and Injury a governmental program provided as a substi- of your pension in your income. For information on disability payments from centage of disability. You must include the rest

Benefits tute for unemployment compensation, see Un-employment Benefits Retroactive VA determination. If you retire in chapter 8. from the armed services based on years of

This section discusses sickness and injury ben- Retirement and profit-sharing plans. If you service and are later given a retroactive serv-

efits, including disability pensions, long-term receive payments from a retirement or ice-connected disability rating by the VA, your

care insurance contracts, workers’ compensa- profit-sharing plan that doesn’t provide for disa- retirement pay for the retroactive period is ex-

tion, and other benefits. disability pension. The payments must be re-bility retirement, don’t treat the payments as a cluded from income up to the amount of VA dis-

ability benefits you would have been entitled to

In most cases, you must report as income ported as a pension or annuity. For more infor- receive. You can claim a refund of any tax paid

any amount you receive for personal injury or mation on pensions, see Pub. 575. on the excludable amount (subject to the statute

Publication 17 (2025) Chapter 5 Wages, Salaries, and Other Earnings 53 of limitations) by filing an amended return on periodic payments without regard to ex- them in your income if they’re for an on-the-job Form 1040-X for each previous year during the penses. injury.





retroactive period. You must include with each If you received income because of a disabil- Qualified long-term care services. Qualified Form 1040-X a copy of the official VA determi- ity, see Disability Pensions , earlier. long-term care services are: nation letter granting the retroactive benefit. The Federal Employees’ Compensation Act letter must show the amount withheld and the • Necessary diagnostic, preventive, thera- (FECA). Payments received under this Act for effective date of the benefit. peutic, curing, treating, mitigating, and re- personal injury or sickness, including payments If you receive a lump-sum disability sever- habilitative services, and maintenance and to beneficiaries in case of death, aren’t taxable. ance payment and are later awarded VA disabil- personal care services; and However, you’re taxed on amounts you receive ity benefits, exclude 100% of the severance • Required by a chronically ill individual and under this Act as continuation of pay for up to benefit from your income. However, you must provided pursuant to a plan of care prescri- 45 days while a claim is being decided. Report include in your income any lump-sum readjust- bed by a licensed health care practitioner. this income as wages. Also, pay for sick leave ment or other nondisability severance payment while a claim is being processed is taxable and you received on release from active duty, even if Chronically ill individual. A chronically ill indi- must be included in your income as wages. you’re later given a retroactive disability rating vidual is one who has been certified by a li- censed health care practitioner within the previ- by the VA. If part of the payments you receive un- ous 12 months as one of the following. der FECA reduces your social security ! Special statute of limitations. In most ca- • An individual who, for at least 90 days, is CAUTION or equivalent railroad retirement bene- ses, under the statute of limitations, a claim for unable to perform at least two activities of fits received, that part is considered social se- credit or refund must be filed within 3 years from daily living without substantial assistance curity (or equivalent railroad retirement) benefits the time a return was filed or 2 years from the due to loss of functional capacity. Activities and may be taxable. See Pub. 554 for more in- time the tax was paid. However, if you receive a formation. of daily living are eating, toileting, transfer- retroactive service-connected disability rating ring, bathing, dressing, and continence. determination, the statute of limitations is exten- Other compensation. Many other amounts ded by a 1-year period beginning on the date of • An individual who requires substantial su- you receive as compensation for sickness or in- pervision to be protected from threats to the determination. This 1-year extended period jury aren’t taxable. These include the following health and safety due to severe cognitive applies to claims for credit or refund filed after amounts. impairment. June 17, 2008, and doesn’t apply to any tax • Compensatory damages you receive for year that began more than 5 years before the Limit on exclusion. You can generally exclude physical injury or physical sickness, date of the determination. from gross income up to $420 a day for 2025. whether paid in a lump sum or in periodic See Limit on exclusion, under Long-Term Care Terrorist attack or military action. Don’t in- payments. Insurance Contracts, under Sickness and Injury clude in your income disability payments you re- • Benefits you receive under an accident or Benefits in Pub. 525 for more information. ceive for injuries incurred as a direct result of a health insurance policy on which either you terrorist attack or military action directed against paid the premiums or your employer paid the United States (or its allies), whether outside Workers’ Compensation the premiums but you had to include them or within the United States or from military ac- in your income. tion. See Pub. 3920 and Pub. 907 for more in- Amounts you receive as workers’ compensation formation. • Disability benefits you receive for loss of in- for an occupational sickness or injury are fully come or earning capacity as a result of in- exempt from tax if they’re paid under a workers’ juries under a no-fault car insurance policy. Long-Term Care compensation act or a statute in the nature of a workers’ compensation act. The exemption also • Compensation you receive for permanent Insurance Contracts loss or loss of use of a part or function of applies to your survivors. The exemption, how- your body, or for your permanent disfigure- ever, doesn’t apply to retirement plan benefits Long-term care insurance contracts in most ca- you receive based on your age, length of serv- ment. This compensation must be based ses are treated as accident and health insur- ice, or prior contributions to the plan, even if you only on the injury and not on the period of ance contracts. Amounts you receive from them your absence from work. These benefits retired because of an occupational sickness or (other than policyholder dividends or premium injury. aren’t taxable even if your employer pays refunds) in most cases are excludable from in- for the accident and health plan that pro- come as amounts received for personal injury If part of your workers’ compensation vides these benefits. or sickness. To claim an exclusion for payments ! reduces your social security or equiva- made on a per diem or other periodic basis un- CAUTION lent railroad retirement benefits re- Reimbursement for medical care. A reim- ceived, that part is considered social security bursement for medical care is generally not tax- der a long-term care insurance contract, you able. However, it may reduce your medical ex- must file Form 8853 with your return. (or equivalent railroad retirement) benefits and may be taxable. For more information, see Pub. pense deduction. For more information, see A long-term care insurance contract is an in- 915, Social Security and Equivalent Railroad Pub. 502. surance contract that only provides coverage Retirement Benefits. for qualified long-term care services. The con-


tract must:

• Return to work. If you return to work after

Be guaranteed renewable; qualifying for workers’ compensation, salary



• Not provide for a cash surrender value or payments you receive for performing light duties 6. other money that can be paid, assigned, are taxable as wages.

• Provide that refunds, other than refunds on Other Sickness and Injury the death of the insured or complete sur-pledged, or borrowed;

render or cancellation of the contract, and Benefits Interest Income



• crease future benefits; and you may receive other payments for sickness or injury. Reminders In most cases, not pay or reimburse expen-Railroad sick pay. Payments you receive as used to reduce future premiums or in- In addition to disability pensions and annuities, dividends under the contract, may only be

would be reimbursed under Medicare, ex- sick pay under the Railroad Unemployment In-ses incurred for services or items that

cept where Medicare is a secondary payer surance Act are taxable and you must include zen with interest income from sources outside them in your income. However, don’t include Foreign source income. If you are a U.S. citi-or the contract makes per diem or other the United States (foreign income), you must

54 Chapter 6 Interest Income Publication 17 (2025) report that income on your tax return unless it is W-9 W-9 Request for Taxpayer Identification TIN to the payer of interest, the payer will gener-exempt by U.S. law. This is true whether you re- Number and Certification ally be required to backup withhold on the inter-

whether or not you receive a Form 1099 from 1099 1099 General Instructions for Certain side inside or outside the United States and est payments at a rate of 24%, and you may

the foreign payer. Information Returns also be subject to a penalty. Use Form W-9 to provide the necessary information. See Form

1099-INT 1099-INT Interest Income W-9 and its instructions.

your Form 1099 reporting your interest income 1099-DIV 1099-DIV Dividends and Distributions Automatic 6-month extension. If you receive

TIN for joint account. Generally, if the

late and you need more time to file your tax re- 1099-OID funds in a joint account belong to one person, 1099-OID Original Issue Discount turn, you can request a 6-month extension of list that person’s name first on the account and

time to file. See Automatic Extension in chap- 1099-R 1099-R Distributions From Pensions, give that person’s TIN to the payer. (For infor-ter 1. Annuities, Retirement or mation on who owns the funds in a joint ac-

Profit-Sharing Plans, IRAs, Insurance count, see Joint accounts, later.) If the joint ac-

Children who have unearned income. See Contracts, etc. count contains combined funds, give the TIN of



Form 8615 and its instructions for the rules and the person whose name is listed first on the ac- 3115 3115 Application for Change in rates that apply to certain children with un- count. Accounting Method earned income. These rules apply to both joint ownership by 6251 6251 Alternative Minimum Tax — a married couple and to joint ownership by Individuals other individuals. For example, if you open a Introduction joint savings account with your child using funds 8615 8615 Tax for Certain Children Who Have belonging to the child, list the child’s name first Unearned Income This chapter discusses the following topics. on the account and give the child’s TIN.



• 8815 8815 Exclusion of Interest From Series EE tution (FFI)), list first and then circle the name of and I U.S. Savings Bonds Issued When to report interest income. the person or entity whose number you entered After 1989 in Form W-9, Part I. If you are providing Form • How to report interest income on your tax W-9 to an FFI to document a joint account, return. For these and other useful items, go to IRS.gov/ each holder of the account that is a U.S. person • What interest is taxable and what interest Interest and Dividends Form W-9 is for a joint account (other than an account maintained by a foreign financial insti- is nontaxable. • Different types of interest income. 8814 8814 Parents’ Election To Report Child’s Form W-9 and its instructions provide: If this

In general, any interest you receive or that is must provide a Form W-9. See Form W-9 and Forms.

credited to your account and can be withdrawn its instructions. General Information is taxable income. Exceptions to this rule are

discussed later in this chapter. Custodian account for your child. If your

You may be able to deduct expenses you A few items of general interest are covered child is the actual owner of an account that is



(Form 1040) if you itemize your deductions. See child, give the child’s TIN to the payer. For ex- Recordkeeping. You should keep a Money borrowed to invest in certificate of de- ample, you must give your child’s SSN to the have in earning this income on Schedule A here. recorded in your name as custodian for the

posit, later, and chapter 12. RECORDS payer of interest on an account owned by your and interest amounts received during list showing sources of interest income

the year. Also, keep the forms you receive child, even though the interest is paid to you as

Useful Items custodian. showing your interest income (Forms 1099-INT, You may want to see: for example) as an important part of your re-



Publication don’t give your TIN to the payer of interest, you Tax on unearned income of certain chil- cords. Penalty for failure to supply TIN. If you

may have to pay a penalty. See Failure to supply



Form (and Instructions) (OID) Instruments child’s interest and dividends on the parent’s re- interest must withhold, as income tax, on the turn. If you can, use Form 8814 for this purpose. amount you are paid, by applying the appropri-For more information about the tax on un-ate withholding rate. The current rate is 24%. 1040 1040 U.S. Individual Income Tax Return earned income of children and the parents’ Withholding is required only if there is a condi-election, go to Form 8615 . tion for backup withholding, such as failing to 1040-SR 1040-SR U.S. Income Tax Return for provide your TIN to the payer or failing to certify Seniors Beneficiary of an estate or trust. Interest you your TIN under penalties of perjury, if required. receive as a beneficiary of an estate or trust is Schedule A (Form 1040) Schedule A (Form 1040) Itemized Backup withholding may also be required if generally taxable income. You should receive a Deductions the IRS has determined that you underreported Schedule K-1 (Form 1041) from the fiduciary. your interest or dividend income. For more infor- Schedule B (Form 1040) Schedule B (Form 1040) Interest and Your copy of Schedule K-1 (Form 1041) and its mation, see Backup Withholding in chapter 4. Ordinary Dividends instructions will tell you where to report the in-come on your Form 1040 or 1040-SR. Schedule K-1 (Form 1041) Schedule K-1 (Form 1041) Beneficiary’s Reporting backup withholding. If backup Share of Income, Deductions, 550 Backup withholding. Your interest income is 550 Investment Income and Expenses child’s tax return. If not, Form 8615 isn’t required generally not subject to regular withholding. and the child’s income is taxed at his or her own 555 555 Community Property However, it may be subject to backup withhold- tax rate. ing to ensure that income tax is collected on the 1212 1212 Guide to Original Issue Discount Some parents can choose to include the income. Under backup withholding, the payer of 537 may be taxed at the parent’s tax rate. If so, Form holding may also apply. 537 Installment Sales 8615 must be completed and attached to the 525 525 Taxable and Nontaxable Income dren. Part of a child’s 2025 unearned income SSN under Penalties in chapter 1. Backup with-

Taxpayer identification number (TIN). You withholding is deducted from your interest in-



Schedule K-1 (Form 1065) security number (SSN), an employer identifica- your Form 1099-INT. The Form 1099-INT will Schedule K-1 (Form 1065) Partner’s tion number (EIN), an adoption taxpayer identifi- show any backup withholding as “Federal in- Credits, etc. must give your name and TIN (either a social come, the amount withheld will be reported on



Schedule K-1 (Form 1120-S) Share of Income, Deductions, cation number (ATIN), or an individual tax iden- come tax withheld.” Credits, etc. tification number (ITIN)) to any person required Joint accounts. If two or more persons hold Schedule K-1 (Form 1120-S) by federal tax law to make a return, statement, property (such as a savings account or bond) Shareholder’s Share of Income, or other document that relates to you. This in-

Deductions, Credits, etc. cludes payers of interest. If you don’t give your

Publication 17 (2025) Chapter 6 Interest Income 55 as joint tenants, tenants by the entirety, or ten- Exempt-interest dividends. Exempt-interest Certificates of deposit and other deferred ants in common, each person’s share of any in- dividends you receive from a mutual fund or interest accounts. If you buy a certificate of terest from the property is determined by local other regulated investment company (RIC) deposit or open a deferred interest account, in-law. aren’t included in your taxable income. (How- terest may be paid at fixed intervals of 1 year or

Income from property given to a child. next.) Exempt-interest dividends should be ever, see Information reporting requirement less during the term of the account. You must

Property you give as a parent to your child un- shown on Form 1099-DIV, box 12. You don’t re- generally include this interest in your income



the Uniform Gifts to Minors Act, or any similar ceive it without paying a substantial penalty. empt-interest dividends. The same is true for accounts that mature in 1 law becomes the child’s property. der the Model Gifts of Securities to Minors Act, duce your basis for distributions that are ex- when you actually receive it or are entitled to re-

Income from the property is taxable to the Information reporting requirement. Al- year or less and pay interest in a single payment

child, except that any part used to satisfy a legal though exempt-interest dividends aren’t taxa- at maturity. If interest is deferred for more than 1



parent or guardian having that legal obligation. Interest subject to penalty for early with- you have to file. This is an information reporting drawal. If you withdraw funds from a deferred requirement and doesn’t change the exempt-in- Savings account with parent as trustee. interest account before maturity, you may have terest dividends into taxable income. obligation to support the child is taxable to the ble, you must show them on your tax return if year, see Original Issue Discount (OID), later.

for a minor child but placed in the name and amount of interest paid or credited to your ac- Note: Exempt-interest dividends paid by a subject to the order of the parents as trustees is Interest income from a savings account opened to pay a penalty. You must report the total

taxable to the child if, under the law of the state mutual fund or other RIC on specified private count during the year, without subtracting the

in which the child resides, both of the following activity bonds may be subject to the alternative penalty. See Penalty on early withdrawal of sav-

are true. minimum tax (AMT). The exempt-interest divi- ings in chapter 1 of Pub. 550 for more informa-

dends subject to the AMT should be shown on tion on how to report the interest and deduct the



statement by banks, savings and loans, and earn on the certificate are two separate items. You must report the total interest income you dends left on deposit with the VA isn’t taxable. other payers of interest. This form shows you This includes interest paid on dividends on con- earn on the certificate in your income. If you the interest income you received during the verted United States Government Life Insur- itemize deductions, you can deduct the interest year. Keep this form for your records. You don’t ance and on National Service Life Insurance you pay as investment interest, up to the have to attach it to your tax return. policies. amount of your net investment income. See In- Report on your tax return the total interest in- terest Expenses in chapter 3 of Pub. 550. come you receive for the tax year. See the Form Individual retirement arrangements (IRAs). 1099-INT Instructions for Recipient to see Interest on a Roth IRA generally isn’t taxable. Example. You purchase a $10,000 certifi- whether you need to adjust any of the amounts Interest on a traditional IRA is tax deferred. You cate of deposit by borrowing $5,000 from Bank reported to you. generally don’t include interest earned in an IRA and adding an additional $5,000 of your funds. in your income until you make withdrawals from The certificate earned $575 at maturity in 2025, Interest not reported on Form 1099-INT. the IRA. See chapter 9 . but you received only $265, which represented Even if you don’t receive a Form 1099-INT, you the $575 you earned minus $310 interest Form 1099-INT. Interest income is generally • The parents aren’t legally permitted to use deposit. The interest you pay on money bor- sion on private activity bonds under State or any of the funds to support the child. rowed from a bank or savings institution to meet Local Government Obligations. the minimum deposit required for a certificate of Interest on Department of Veterans Affairs deposit from the institution and the interest you reported to you on Form 1099-INT or a similar (VA) dividends. Interest on insurance divi- • The savings account legally belongs to the penalty. Form 1099-DIV, box 13. See Alternative Mini-child. mum Tax (AMT) in chapter 13 for more informa- Money borrowed to invest in certificate of tion. Chapter 1 of Pub. 550 contains a discus-

must still report all of your interest income. For Taxable example, you may receive distributive shares of charged on your $5,000 loan. The bank gives

interest from partnerships or S corporations. you a Form 1099-INT for 2025 showing the Interest—General



(Form 1065) or Schedule K-1 (Form 1120-S). you a statement showing that you paid $310 of Taxable interest includes interest you receive interest for 2025. You must include the $575 in Nominees. Generally, if someone receives This interest is reported to you on Schedule K-1 $575 interest you earned. The bank also gives

from bank accounts, loans you make to others, your income. If you itemize your deductions on

interest as a nominee for you, that person must and other sources. The following are some Schedule A (Form 1040), you can deduct $310,



as a nominee for another person, see the dis- cash gifts or services for making deposits or for tually interest. You must report as interest opening an account in a savings institution, you cussion on nominee distributions under How To so-called dividends on deposits or on share ac- may have to report the value as interest. Report Interest Income in chapter 1 of Pub. 550 counts in: For deposits of less than $5,000, gifts or or the Schedule B (Form 1040) instructions. • Cooperative banks, services valued at more than $10 must be re- Incorrect amount. If you receive a Form received on your behalf. Dividends that are actually interest. Certain Gift for opening account. If you receive non-If you receive a Form 1099-INT and interest distributions commonly called dividends are ac-give you a Form 1099-INT showing the interest sources of taxable interest. subject to the net investment income limit.

1099-INT that shows an incorrect amount or Credit unions, • ported as interest. For deposits of $5,000 or

more, gifts or services valued at more than $20

other incorrect information, you should ask the • Domestic building and loan associations, must be reported as interest. The value is deter-



issuer for a corrected form. The new Form mined by the cost to the financial institution. • Domestic savings and loan associations, 1099-INT you receive will have the “CORREC- • Federal savings and loan associations, TED” box checked. Example. You open a savings account at and your local bank and deposit $800. The account Form 1099-OID. Reportable interest income earns $20 interest. You also receive a $15 cal- • Mutual savings banks. may also be shown on Form 1099-OID. For culator. If no other interest is credited to your more information about amounts shown on this The “dividends” will be shown as interest in- account during the year, the Form 1099-INT you form, see Original Issue Discount (OID) , later in come on Form 1099-INT. receive will show $35 interest for the year. You this chapter. must report $35 interest income on your tax re- Money market funds. Money market funds The box references discussed below turn. pay dividends and are offered by nonbank fi- are from the January 2024 revisions of ! nancial institutions, such as mutual funds and Interest on insurance dividends. Interest on Form 1099-INT and Form 1099-DIV. CAUTION stock brokerage houses. Generally, amounts insurance dividends left on deposit with an in- Later revisions may have different box referen- you receive from money market funds should be surance company that can be withdrawn annu- ces. reported as dividends, not as interest. ally is taxable to you in the year it is credited to

56 Chapter 6 Interest Income Publication 17 (2025) your account. However, if you can withdraw it must include it in income in the year you can U.S. savings bonds when you receive it. The only on the anniversary date of the policy (or withdraw it. cash method of accounting is explained in

other specified date), the interest is taxable in chapter 1 under Accounting Methods. But see

the year that date occurs. Example. $100 of interest was credited on Reporting options for cash method taxpayers, Prepaid insurance premiums. Any increase your frozen deposit during the year. You with- later.



vance premiums, or premium deposit funds is sold HH savings bonds from 1980 through Au- your income and exclude $20 from your income interest if it is applied to the payment of premi- gust 2004. HH savings bonds earn interest for for the year. You must include the $20 in your in- ums due on insurance policies or made availa- up to 20 years. So the last HH bonds will stop come for the year you can withdraw it. in the value of prepaid insurance premiums, ad- Series H and HH bonds. The U.S. Treasury the end of the year. You must include $80 in drew $80 but couldn’t withdraw any more as of

ble for you to withdraw. earning interest in 2024. (See

U.S. obligations. Interest on U.S. obligations Bonds traded flat. If you buy a bond at a dis- TreasuryDirect.gov/savings-bonds/hh-bonds/.)

issued by any agency or instrumentality of the count when interest has been defaulted or when Certain HH bonds weren’t available for cash

United States, such as U.S. Treasury bills, the interest has accrued but hasn’t been paid, only. To buy those HH bonds, you had to trade

notes, and bonds, is taxable for federal income the transaction is described as trading a bond in another security you had bought earlier. In

tax purposes. flat. The defaulted or unpaid interest isn’t in- making the exchange, you may have used inter-

come and isn’t taxable as interest if paid later. est the original security had earned to help pay

Interest on tax refunds. Interest you receive When you receive a payment of that interest, it for the HH bond. If you used an old bond to buy on tax refunds is taxable income. is a return of capital that reduces the remaining more than one HH bond, the interest you used Interest on condemnation award. If the con- cost basis of your bond. Interest that accrues to buy the bonds was divided proportionately

demning authority pays you interest to compen- after the date of purchase, however, is taxable among the HH bonds. You had a choice then for

sate you for a delay in payment of an award, the interest income for the year it is received or ac- the tax on that interest: pay it then or wait and

interest is taxable. crued. See Bonds Sold Between Interest Dates, pay it later (defer it). Interest that you decided to

later, for more information. pay later is “deferred interest.” If your HH bond



Installment sale payments. If a contract for has deferred interest, you see the amount iden- Below-market loans. Generally, a “below-mar- the sale or exchange of property provides for tified on the front of the bond. You don’t have to ket loan” means any loan if (a) in the case of a deferred payments, it also usually provides for report deferred interest on your federal income gift or demand loan, interest is payable on the interest payable with the deferred payments. tax return until you are filing your return for the loan at a rate less than the applicable federal Generally, that interest is taxable when you re- year in which the first of these events occurs: rate; or (b) in the case of a term loan, the ceive it. If little or no interest is provided for in a you cash the HH bond; the HH bond stops amount loaned exceeds the present value (us- deferred payment contract, part of each pay- earning interest; the HH bond is reissued to ing a discount rate equal to the applicable fed- ment may be treated as interest. See Unstated show a change in ownership that is a taxable eral rate) of all payments due under the loan. Interest and Original Issue Discount (OID) in event. (See TreasuryDirect.gov/savings- (See Code section 7872 for details.) Section Pub. 537. bonds/hh-bonds/hh-bonds-tax-information .) 7872 applies to certain below-market loans, in- Series H bonds were issued before 1980. All cluding gift loans, compensation-related loans, Interest on annuity contract. Accumulated Series H bonds have matured and are no longer interest on an annuity contract you sell before and corporation-shareholder loans. (See Code earning interest. its maturity date is taxable. section 7872(c).) If you are the lender of a be- low-market loan, you may have additional inter- In addition to the twice-a-year interest pay- Usurious interest. Usurious interest is interest est income. See Below-Market Loans in chap- ments, most H/HH bonds have a deferred inter- charged at an illegal rate. This is taxable as in- est component. The reporting of this as income ter 1 of Pub. 550 for more information. terest unless state law automatically changes it is addressed later in this chapter. to a payment on the principal. U.S. Savings Bonds Series EE and Series I bonds. Interest on Interest income on frozen deposits. Exclude these bonds is payable when you redeem the from your gross income interest on frozen de- This section provides tax information on U.S. bonds. The difference between the purchase posits. A deposit is frozen if at the end of the savings bonds. It explains how to report the in- price and the redemption value is taxable inter- year you can’t withdraw any part of the deposit terest income on these bonds and how to treat est. because: transfers of these bonds. Series E and EE bonds. Series E bonds U.S. savings bonds currently offered to indi- • The financial institution is or may become were issued before July 1980. All Series E bankrupt or insolvent, or viduals include Series EE bonds and Series I bonds have matured and are no longer earning bonds. • The state where the institution is located interest. Series EE bonds were first offered in has placed limits on withdrawals because For information about U.S. savings January 1980 and have a maturity period of 30 years; they were offered in paper (definitive) other financial institutions in the state are bonds, go to TreasuryDirect.gov/ savings-bonds/ bankrupt or insolvent. . form until 2012. Paper Series EE and Series E bonds were issued at a discount and increase The amount of interest you must exclude is If you prefer, write to: in value as they earn interest. Electronic the interest that was credited on the frozen de- (book-entry) Series EE bonds were first offered posits minus the sum of: in 2003; they are issued at face value and in- • The net amount you withdrew from these Treasury Retail Securities Services crease in value as they earn interest. For all deposits during the year, and P.O. Box 9150 Series E and Series EE bonds, the purchase

• Minneapolis, MN 55480-9150 price plus all accrued interest is payable to you The amount you could have withdrawn as at redemption. of the end of the year (not reduced by any



If you receive a Form 1099-INT for interest in- bonds issued at face value with a maturity pe- terest on U.S. savings bonds each year as it ac- riod of 30 years. Series I bonds increase in come on deposits that were frozen at the end of crues. You can’t postpone reporting interest value as they earn interest. The face value plus 2025, see Frozen deposits under How To Re- until you receive it or until the bonds mature. Ac- all accrued interest is payable to you at redemp- port Interest Income in chapter 1 of Pub. 550 for deposit). Accrual method taxpayers. If you use an ac- fered in 1998. These are inflation-indexed crual method of accounting, you must report in-penalty for premature withdrawals of a time Series I bonds. Series I bonds were first of-



information about reporting this interest income crual methods of accounting are explained in tion. chapter 1 under Accounting Methods . exclusion on your tax return. Cash method taxpayers. If you use the cash The interest you exclude is treated as credi-method of accounting, as most individual tax-ted to your account in the following year. You payers do, you generally report the interest on



Publication 17 (2025) Chapter 6 Interest Income 57 Table 6-1. Who Pays the Tax on U.S. Savings Bond Interest that time, neither you nor your spouse has to re-

port the interest earned to the date of reissue.

IF... THEN the interest must be reported by...

you buy a bond in your name and the name of another you. Example 2. You bought a $1,000 Series EE

person as co-owners, using only your own funds savings bond entirely with your own funds. The

you buy a bond in the name of another person, who is the the person for whom you bought the bond. bond was issued to you and your spouse as

sole owner of the bond co-owners. You both postpone reporting interest

you and another person buy a bond as co-owners, each both you and the other co-owner, in proportion to the on the bond. You later have the bond reissued

contributing part of the purchase price amount each paid for the bond. as two $500 bonds, one in your name and one

you and your spouse, who live in a community property you and your spouse. If you file separate returns, both you in your spouse’s name. You must report half the

state, buy a bond that is community property and your spouse generally report one-half of the interest. interest earned to the date of reissue.

Reporting options for cash method tax- taxable to each of you, in proportion to the Transfer to a trust. If you own Series EE or

payers. If you use the cash method of report- amount each of you paid. Series I bonds and transfer them to a trust, giv-ing income, you can report the interest on Ser- ing up all rights of ownership, you must include

ies EE and Series I bonds in either of the Community property. If you and your in your income for that year the interest earned following ways. spouse live in a community property state and to the date of transfer if you have not already re-

1. Method 1. Postpone reporting the interest hold bonds as community property, one-half of ported it. However, if you are considered the

until the earlier of the year you cash or dis- the interest is considered received by each of owner of the trust and if the increase in value

pose of the bonds or the year they mature. you. If you file separate returns, each of you both before and after the transfer continues to

must generally report one-half of the bond inter- be taxable to you, you can continue to defer re-

2. Method 2. Choose to report the increase est. For more information about community porting the interest earned each year. You must

in redemption value as interest each year. property, see Pub. 555. include the total interest in your income in the

You must use the same method for all Series EE Table 6-1. These rules are also shown in Ta- year the bonds finally mature, whichever is ear-year you cash or dispose of the bonds or the

and Series I bonds you own. ble 6-1. lier.

If you plan to cash your bonds in the Ownership transferred. If you bought Series The same rules apply to previously unrepor-

TIP same year you will pay for higher edu- EE or Series I bonds entirely with your own ted interest on Series EE or Series E bonds if

cation expenses, you may want to use funds and had them reissued in your co-owner’s the transfer to a trust consisted of Series HH

method 1 because you may be able to exclude name or beneficiary’s name alone, you must in- bonds you acquired in a trade for the Series EE the interest from your income. To learn how, see clude in your gross income for the year of reis- or Series E bonds.



from method 1 to method 2, you can do so with- time. viously used by the decedent. This is explained This same rule applies when bonds (other out permission from the IRS. In the year of in chapter 1 of Pub. 550. than bonds held as community property) are change, you must report all interest accrued to transferred between spouses or incident to di-Form 1099-INT for U.S. savings bonds inter-date and not previously reported for all your vorce. est. When you cash a bond, the bank or other bonds. payer that redeems it may give you a Form Once you choose to report the interest each Purchased jointly. If you and a co-owner 1099-INT. Form 1099-INT, box 3 should show year, you must continue to do so for all Series each contributed funds to buy Series EE or Ser-change your method of reporting the interest Change from method 1. If you want to bonds were reissued in your name alone, you income on Series EE or Series I bonds after the death of the owner (decedent) depends on the don’t have to report the interest accrued at that accounting and income-reporting methods pre- Education Savings Bond Program, later. sue all interest that you earned on these bonds and have not previously reported. But, if the Decedents. The manner of reporting interest



EE and Series I bonds you own and for any you the interest as the difference between the ies I bonds jointly and later have the bonds reis- amount you received and the amount paid for get later, unless you request permission to sued in the co-owner’s name alone, you must the bond. However, your Form 1099-INT may change, as explained next. include in your gross income for the year of reis- show more interest than you have to include on sue your share of all the interest earned on the your income tax return. For example, this may Change from method 2. To change from bonds that you have not previously reported. happen if any of the following are true. method 2 to method 1, see Revenue Procedure The former co-owner doesn’t have to include in 2025-23, section 17. • You chose to report the increase in the re- gross income at the time of reissue his or her demption value of the bond each year. The Co-owners. If a U.S. savings bond is issued in share of the interest earned that was not repor- interest shown on your Form 1099-INT the names of co-owners, such as you and your ted before the transfer. This interest, however, won’t be reduced by amounts previously child or you and your spouse, interest on the as well as all interest earned after the reissue, is included in income. bond is generally taxable to the co-owner who income to the former co-owner. • bought the bond. This income-reporting rule also applies You received the bond from a decedent. when a new co-owner purchases your share of The interest shown on your Form 1099-INT

One co-owner’s funds used. If you used the bond and the bonds are reissued in the won’t be reduced by any interest reported

your funds to buy the bond, you must pay the name of your former co-owner and a new by the decedent before death or on the de-tax on the interest. This is true even if you let the co-owner. But the new co-owner will report only cedent’s final return or by the estate on the other co-owner redeem the bond and keep all his or her share of the interest earned after the estate’s income tax return.



the proceeds. Under these circumstances, the transfer. • Ownership of the bond was transferred. co-owner who redeemed the bond will receive a If bonds that you and a co-owner bought The interest shown on your Form 1099-INT Form 1099-INT at the time of redemption and jointly are reissued to each of you separately in won’t be reduced by interest that accrued must provide you with another Form 1099-INT the same proportion as your contribution to the before the transfer. showing the amount of interest from the bond purchase price, neither you nor your co-owner Note: This is true for paper bonds, but taxable to you. The co-owner who redeemed has to report at that time the interest earned be-the Treasury reporting process for elec-the bond is a “nominee.” See Nominee distribu-fore the bonds were reissued. tronic bonds is more refined—if Treasury is tions under How To Report Interest Income in aware that the transfer of an electronic sav-chapter 1 of Pub. 550 for more information Example 1. You and your spouse each ings bond is a reportable event, then the about how a person who is a nominee reports spent an equal amount to buy a $1,000 Series transferor will receive a Form 1099-INT for interest income belonging to another person. EE savings bond. The bond was issued to you the year of the transfer for the interest ac-and your spouse as co-owners. You both post-crued up to the time of the transfer; when Both co-owners’ funds used. If you and pone reporting interest on the bond. You later the transferee later disposes of the bond the other co-owner each contribute part of the have the bond reissued as two $500 bonds, one (redemption, maturity, or further transfer), bond’s purchase price, the interest is generally in your name and one in your spouse’s name. At

58 Chapter 6 Interest Income Publication 17 (2025)

the transferee will receive a Form 1099-INT Qualified expenses include any contribution and their daughter doesn’t have any tax-free ed-reduced by the amount reported to the you make to a qualified tuition program or to a ucational assistance. They can exclude transferor at the time of the original trans- Coverdell education savings account (ESA). $1,516.15 ($3,052 × ($4,000 ÷ $8,052)) of inter-fer. Qualified expenses don’t include expenses est on their 2024 joint income tax return.



rect amount of interest on your return, see • for room and board or for courses involving You were named as a co-owner, and the sports, games, or hobbies that aren’t part of a other co-owner contributed funds to buy degree- or certificate-granting program. U.S. Treasury Bills, Notes, the bond. The interest shown on your Form and Bonds 1099-INT won’t be reduced by the amount Eligible educational institutions. These you received as nominee for the other institutions include most public, private, and co-owner. (See Co-owners , earlier in this Treasury bills, notes, and bonds are direct debts nonprofit universities, colleges, and vocational chapter, for more information about the re-(obligations) of the U.S. Government. schools that are accredited and eligible to par-porting requirements.) ticipate in student aid programs run by the U.S. Taxation of interest. Interest income from Department of Education. • You received the bond in a taxable distribu-Treasury bills, notes, and bonds is subject to tion from a retirement or profit-sharing federal income tax but is exempt from all state Reduction for certain benefits. You must plan. The interest shown on your Form and local income taxes. You should receive a reduce your qualified higher education expen-1099-INT won’t be reduced by the interest Form 1099-INT showing the interest paid to you ses by all of the following tax-free benefits. portion of the amount taxable as a distribu-for the year in box 3. 1. Tax-free part of scholarships and fellow-tion from the plan and not taxable as inter-ships (see est. (This amount is generally shown on Scholarships and fellowships in Treasury bills. These bills generally have a chapter 8). Form 1099-R for the year of distribution.) 4-week, 8-week, 13-week, 26-week, or 52-week maturity period. They are generally issued at a For more information on including the cor-2. Expenses used to figure the tax-free por-discount in the amount of $100 and multiples of How tion of distributions from a Coverdell ESA. $100. The difference between the discounted To Report Interest Income , later. 3. Expenses used to figure the tax-free por-price you pay for the bills and the face value you tion of distributions from a qualified tuition Interest on U.S. savings bonds is ex-receive at maturity is interest income. Generally, program. TIP empt from state and local taxes. you report this interest income when the bill is



Education Savings Bond 4. Any tax-free payments (other than gifts or paid at maturity. If you paid a premium for a bill (more than the face value), you generally report inheritances) received for educational ex- the premium as a section 171 deduction when penses, such as: the bill is paid at maturity. Program a. Veterans’ educational assistance ben- If you reinvest your Treasury bill at its matur- efits, ity in a new Treasury bill, note, or bond, you will You may be able to exclude from income all or receive payment for the difference between the b. Qualified tuition reductions, or part of the interest you receive on the redemp- proceeds of the maturing bill (par amount less

tion of qualified U.S. savings bonds during the c. Employer-provided educational assis- any tax withheld) and the purchase price of the



penses during the same year. This exclusion is port the full amount of the interest income on 5. Any expense used in figuring the Ameri- known as the Education Savings Bond Pro- year if you pay qualified higher educational ex- tance. new Treasury security. However, you must re-

gram. can opportunity and lifetime learning cred- each of your Treasury bills at the time it reaches maturity. its. You don’t qualify for this exclusion if your fil-

ing status is married filing separately. Amount excludable. If the total proceeds Treasury notes and bonds. Treasury notes

Form 8815. Use Form 8815 to figure your (interest and principal) from the qualified U.S. generally have maturity periods of more than 1

exclusion. Attach the form to your Form 1040 or savings bonds you redeem during the year year, ranging up to 10 years. Maturity periods

1040-SR. aren’t more than your adjusted qualified higher for Treasury bonds are generally longer than 10

education expenses for the year, you may be years. Both generally pay interest every 6

Qualified U.S. savings bonds. A qualified able to exclude all of the interest. If the pro- months. Generally, you report this interest for

U.S. savings bond is a Series EE bond issued ceeds are more than the expenses, you may be the year paid. For more information, see U.S. after 1989 or a Series I bond. The bond must be able to exclude only part of the interest. Treasury Bills, Notes, and Bonds in chapter 1 of issued either in your name (sole owner) or in To determine the excludable amount, multi- Pub. 550.



your and your spouse’s names (co-owners). ply the interest part of the proceeds by a frac- For other information on Treasury notes You must be at least 24 years old before the tion. The numerator of the fraction is the quali-or bonds, write to: bond’s issue date. For example, a bond bought fied higher education expenses you paid during



by a parent and issued in the name of his or her the year. The denominator of the fraction is the Treasury Retail Securities Services child under age 24 doesn’t qualify for the exclu-total proceeds you received during the year. P.O. Box 9150 sion by the parent or child. Minneapolis, MN 55480-9150 Example 1. Max and Helene married and The issue date of a bond may be ear-paid $5,000 in January 2009 for a $10,000 de-! lier than the date the bond is pur-nomination Series EE U.S. savings bond. They chased because the issue date as-CAUTION Or, on the Internet, go to cashed the bond for $6,148 ($5,000 [price] + signed to a bond is the first day of the month in TreasuryDirect.gov/marketable-$1,148 [interest]) and paid $4,000 of college tui-which it is purchased. securities/ . tion for their child, Ari, in January 2025. Max Beneficiary. You can designate any individual and Helene can exclude $746.90 ($1,148 x For information on Series EE, Series I, and

(including a child) as a beneficiary of the bond. ($4,000 ÷ $6,148)) of interest on their 2025 joint Series HH savings bonds, see U.S. Savings



demption information from the Department of (TIPS). These securities pay interest twice a EE U.S. savings bonds with a total denomina- the Treasury. year at a fixed rate, based on a principal amount tion of $10,000 that they bought in January adjusted to take into account inflation and defla- Qualified expenses. Qualified higher edu- 2008 for $5,000. They received proceeds of tion. For the tax treatment of these securities, cation expenses are tuition and fees required $8,052, representing principal of $5,000 and in- see Inflation-Indexed Debt Instruments under for you, your spouse, or your dependent (for terest of $3,052. In 2024, they paid $4,000 of Original Issue Discount (OID) in chapter 1 of sion, the IRS will check it by using bond re-Verification by IRS. If you claim the exclu- Example 2. In January 2024, Mark and Treasury inflation-protected securities Joan, a married couple, cashed qualified Series income tax return. Bonds, earlier.

gible educational institution. Pub. 550. whom you claim an exemption) to attend an eli- their daughter’s college tuition. They aren’t claiming an education credit for that amount,

Publication 17 (2025) Chapter 6 Interest Income 59 Bonds Sold Between Original Issue Discount b. The amount of the loan, plus the amount of any outstanding prior loans Interest Dates (OID) between the same individuals, is



dates, part of the sales price represents interest c. Avoiding any federal tax isn’t one of OID in your income as it accrues over the term accrued to the date of sale. You must report that the principal purposes of the loan. of the debt instrument, whether or not you re- part of the sales price as interest income for the If you sell a bond between interest payment OID is a form of interest. You generally include $10,000 or less.

year of sale. A debt instrument generally has OID when ceive any payments from the issuer. 5. A debt instrument purchased at a pre-



dates, part of the purchase price represents in- than its stated redemption price at maturity. OID 1099-OID for a debt instrument you own. If you terest accrued before the date of purchase. is the difference between the stated redemption When that interest is paid to you, treat it as a receive a Form 1099-OID (Rev. 1-2024), box 1 price at maturity and the issue price. nontaxable return of your capital investment, If you buy a bond between interest payment the instrument is issued for a price that is less Form 1099-OID. You may receive a Form mium.



Income in chapter 1 of Pub. 550 for information count on U.S. Treasury obligations.” of these instruments. on reporting the payment. In most cases, you must report the entire The OID accrual rules generally don’t apply amount in Form 1099-OID, boxes 1, 2, and 8 as to short-term obligations (those with a fixed ma-interest income. But see Refiguring OID shown Insurance turity date of 1 year or less from date of issue). on Form 1099-OID , later in this discussion, for See Discount on Short-Term Obligations in more information. rather than as interest income. See Accrued in- fore maturity are presumed to be issued at a terest on bonds under How To Report Interest est”; and box 8 will show any “Original issue dis-discount. Zero coupon bonds are one example All debt instruments that pay no interest be- year”; box 2 will show any “Other periodic inter- will show any “Original issue discount for the

ciary of the insured person are usually not taxa- Form 1099-OID not received. If you had OID De minimis OID. You can treat the discount as ble. But if you receive the proceeds in install- Life insurance proceeds paid to you as benefi- chapter 1 of Pub. 550.



installment payment as interest income. of the stated redemption price at maturity multi- you may have to figure the correct amount of OID to report on your return. See Pub. 1212 for plied by the number of full years from the date ments, you must usually report a part of each zero if it is less than one-fourth of 1% (0.0025) for the year but didn’t receive a Form 1099-OID,

ceeds received in installments, see Pub. 525. of original issue to maturity. This small discount For more information about insurance pro- details on how to figure the correct OID.

is known as de minimis OID. Nominee. If someone else is the record

Annuity. If you buy an annuity with life insur- holder (the registered owner) of an OID instru-

ance proceeds, the annuity payments you re- Example 1. You bought a 10-year bond ment belonging to you and receives a Form ceive are taxed as pension and annuity income with a stated redemption price at maturity of 1099-OID on your behalf, that person must give from a nonqualified plan, not as interest income. $1,000, issued at $980 with OID of $20. you a Form 1099-OID.

annuity income from nonqualified plans. Refiguring OID shown on Form 1099-OID. See chapter 5 for information on pension and One-fourth of 1% of $1,000 (stated redemption



State or Local Government $25. Because the $20 discount is less than $25, Form 1099-OID, box 1 or box 8 if either of the following applies. the OID is treated as zero. (If you hold the bond Obligations the date of original issue to maturity) equals You may need to refigure the OID shown in price) times 10 (the number of full years from

at maturity, you will recognize $20 ($1,000 − • You bought the debt instrument after its $980) of capital gain.) original issue and paid a premium or an ac-

Interest on a bond used to finance government quisition premium.



operations generally isn’t taxable if the bond is Example 2. The facts are the same as in • The debt instrument is a stripped bond or a issued by a state, the District of Columbia, a ter-Example 1, except that the bond was issued at stripped coupon (including certain zero ritory of the United States, or any of their politi-$950. The OID is $50. Because the $50 dis-coupon instruments). cal subdivisions. count is more than the $25 figured in Exam-See Pub. 1212 and Form 1099-OID for infor-Bonds issued after 1982 by an Indian tribal ple 1, you must include the OID in income as it mation regarding figuring the correct amount of government (including tribal economic develop-accrues over the term of the bond. OID to include on your income tax return. ment bonds issued after February 17, 2009) are



not apply to tribal economic development bonds count is reported under the market discount periodic interest that may be shown in Form rules. See Market Discount Bonds in chapter 1 1099-OID, box 2 for that instrument. issued after February 17, 2009. See section of Pub. 550. Certificates of deposit (CDs). A CD is a debt 7871(f). Exceptions to reporting OID as current in- instrument. If you buy a CD with a maturity of For information on federally guaranteed come. The OID rules discussed in this chapter more than 1 year, you must include in income bonds, mortgage revenue bonds, arbitrage don’t apply to the following debt instruments. each year a part of the total interest due and re- bonds, private activity bonds, qualified bonds, 1. Tax-exempt obligations. (However, see and tax credit bonds, including whether interest port it in the same manner as other OID. Stripped tax-exempt obligations under on some of these bonds is taxable, see State or This also applies to similar deposit arrange- ments with banks, building and loan associa- ceeds are to be used in the exercise of any es- mis OID at a premium, the de minimis OID isn’t or acquired it from another holder during the includible in income. If you buy a debt instru- year, see Bonds Sold Between Interest Dates , sential government function. However, the es- ment with de minimis OID at a discount, the dis- earlier, for information about the treatment of sential government function requirement does bonds is generally tax exempt if the bonds are sue. If you buy a debt instrument with de mini- 1099-OID. If you disposed of a debt instrument part of an issue of which substantially all pro-treated as issued by a state. Interest on these Debt instrument bought after original is- Refiguring periodic interest shown on Form

Local Government Obligations in chapter 1 of Stripped Bonds and Coupons in chapter 1 Pub. 550. of Pub. 550.) tions, etc., including:

Information reporting requirement. If you file 2. U.S. savings bonds. • Time deposits,



a tax return, you are required to show any • Bonus plans, 3. Short-term debt instruments (those with a tax-exempt interest you received on your return. fixed maturity date of not more than 1 year • Savings certificates, Tax-exempt interest paid to you will be reported from the date of issue). to you on Form 1099-INT, box 8. This is an infor-• Deferred income certificates, 4. Loans between individuals if all the follow-mation reporting requirement only. It doesn’t • Bonus savings certificates, and change tax-exempt interest to taxable interest. ing are true. • Growth savings certificates. a. The loan is not made in the course of Bearer CDs. CDs issued after 1982 must a trade or business of the lender. generally be in registered form. Bearer CDs are

60 Chapter 6 Interest Income Publication 17 (2025) CDs not in registered form. They aren’t issued Coupon bonds. Interest on bearer bonds with from the amounts on Form 1099-INT, box 8 and in the depositor’s name and are transferable detachable coupons is generally taxable in the Form 1099-DIV, box 12.

from one individual to another. year the coupon becomes due and payable. It Banks must provide the IRS and the person Don’t report interest from an IRA as

redeeming a bearer CD with a Form 1099-INT. doesn’t matter when you mail the coupon for tax-exempt interest. payment. !

CAUTION



ics, such as market discount bonds. except for interest from U.S. savings bonds and Treasury obligations, is shown in Form Income 1099-INT, box 1. Add this amount to any other When To Report for more information about OID and related top- Form 1099-INT. Your taxable interest income, More information. See chapter 1 of Pub. 550 How To Report Interest

Interest Income Generally, you report all your taxable interest in- taxable interest income you received. See the

come on Form 1040 or 1040-SR, line 2b. Form 1099-INT Instructions for Recipient if you



When to report your interest income depends plete Schedule B (Form 1040), Part I, if you file est income even if you don’t receive a Form on whether you use the cash method or an ac-Form 1040 or 1040-SR and any of the following 1099-INT. Contact your financial institution if crual method to report income. Schedule B (Form 1040). You must com- mium. You must report all of your taxable inter- have interest from a security acquired at a pre-

apply. you don’t receive a Form 1099-INT by February

Cash method. Most individual taxpayers use 1. Your taxable interest income is more than 15. Your identifying number may be truncated the cash method. If you use this method, you $1,500. on any Form 1099-INT you receive.



generally report your interest income in the year If you forfeited interest income because of 2. You are claiming the interest exclusion un- in which you actually or constructively receive it. the early withdrawal of a time deposit, the de- der the Education Savings Bond Program However, there are special rules for reporting ductible amount will be shown on Form (discussed earlier). the discount on certain debt instruments. See 1099-INT, box 2. See Penalty on early with- U.S. Savings Bonds and Original Issue Dis- 3. You received interest from a seller-fi- drawal of savings in chapter 1 of Pub. 550. count (OID) , earlier. nanced mortgage, and the buyer used the Form 1099-INT, box 3 shows the interest in- property as a home. come you received from U.S. savings bonds, Example. On August 31, 2023, you loaned Treasury bills, Treasury notes, and Treasury 4. You received a Form 1099-INT for U.S. another individual $2,000 at 4% interest, com- bonds. Generally, add the amount shown in savings bond interest that includes pounded annually. You aren’t in the business of Form 1099-INT, box 3 to any other taxable inter- amounts you reported in a previous tax lending money. The note stated that principal est income you received. If part of the amount year. and interest would be due on August 30, 2025. shown in Form 1099-INT, box 3 was previously In 2025, you received $2,163.20 ($2,000 princi- 5. You received, as a nominee, interest that included in your interest income, see U.S. sav- pal and $163.20 interest). If you use the cash actually belongs to someone else. ings bond interest previously reported , later. If method, you must include in income on your you acquired the security at a premium, see the 6. You received a Form 1099-INT for interest 2025 return the $163.20 interest you received in Form 1099-INT Instructions for Recipient. on frozen deposits. that year. Form 1099-INT, box 4 will contain an amount 7. You received a Form 1099-INT for interest if you were subject to backup withholding. In- Constructive receipt. You constructively re- on a bond you bought between interest ceive income when it is credited to your account clude the amount from box 4 on Form 1040 or payment dates. or made available to you. You don’t need to 1040-SR, line 25b (federal income tax with- held). have physical possession of it. For example, 8. You are reporting OID in an amount less you are considered to receive interest, divi- than the amount shown on Form Form 1099-INT, box 5 shows investment ex- dends, or other earnings on any deposit or ac- penses. This amount is not deductible. 1099-OID. count in a bank, savings and loan, or similar fi- Form 1099-INT, box 6 shows foreign tax 9. You reduce interest income from bonds by nancial institution, or interest on life insurance paid. You may be able to claim this tax as a de- amortizable bond premium. policy dividends left to accumulate, when they duction or a credit on your Form 1040 or

are credited to your account and subject to your 1040-SR. See your tax return instructions. In Part I, line 1, list each payer’s name and the

withdrawal. amount received from each. If you received a Form 1099-INT, box 7 shows the foreign

You constructively receive income on the de- Form 1099-INT or Form 1099-OID from a bro- country or U.S. territory to which the foreign tax

posit or account even if you must: kerage firm, list the brokerage firm as the payer. was paid.



Accrual method. If you use an accrual • Make withdrawals in multiples of even The box references discussed below U.S. savings bond interest previously re-amounts; are from the January 2024 revisions of ported. If you received a Form 1099-INT for ! • Give a notice to withdraw before making CAUTION Form 1099-INT and Form 1099-DIV. U.S. savings bond interest, the form may show the withdrawal; Later revisions may have different box referen-interest you don’t have to report. See Form ces. 1099-INT for U.S. savings bonds interest , ear-• Withdraw all or part of the account to with-lier. draw the earnings; or Reporting tax-exempt interest. Total your On Schedule B (Form 1040), Part I, line 1, • Pay a penalty on early withdrawals, unless tax-exempt interest (such as interest or accrued report all the interest shown on your Form the interest you are to receive on an early OID on certain state and municipal bonds, in-1099-INT. Then follow these steps. withdrawal or redemption is substantially cluding zero coupon municipal bonds) reported 1. Several rows above line 2, enter a subtotal less than the interest payable at maturity. on Form 1099-INT, box 8; Form 1099-OID, of all interest listed on line 1. box 11; and exempt-interest dividends from a mutual fund or other regulated investment com-2. Below the subtotal, enter “U.S. Savings method, you report your interest income when pany reported on Form 1099-DIV, box 12. Add Bond Interest Previously Reported” and you earn it, whether or not you have received it. these amounts to any other tax-exempt interest enter amounts previously reported or inter-Interest is earned over the term of the debt in-you received. Report the total on Form 1040 or est accrued before you received the bond. strument. 1040-SR, line 2a. 3. Subtract these amounts from the subtotal Form 1099-INT, box 9, and Form 1099-DIV, Example. If, in the previous example, you and enter the result on line 2. box 13, show the tax-exempt interest subject to use an accrual method, you must include the in-the AMT on Form 6251. These amounts are al-More information. For more information about terest in your income as you earn it. You would ready included in the amounts on Form how to report interest income, see chapter 1 of report the interest as follows: 2023, $26.67; 1099-INT, box 8, and Form 1099-DIV, box 12. Pub. 550 or the instructions for the form you 2024, $81.06; and 2025, $55.47. Don’t add the amounts in Form 1099-INT, box 9 must file.

and Form 1099-DIV, box 13 to or subtract them

Publication 17 (2025) Chapter 6 Interest Income 61





equivalent benefit (SSEB) portion of tier 1 bene- 505 505 Tax Withholding and Estimated Tax




7. fits.

If you received these benefits during 2025, 519 519 U.S. Tax Guide for Aliens

you should have received a Form SSA-1099, 575 575 Pension and Annuity Income Social Security Benefit Statement; or Form



Social Security RRB-1099, Payments by the Railroad Retire- 590-A 590-A Contributions to Individual ment Board. These forms show the amounts re- Retirement Arrangements (IRAs)

ceived and repaid, and taxes withheld for the



and Equivalent year. You may receive more than one of these 915 915 Social Security and Equivalent forms for the same year. You should add the Railroad Retirement Benefits amounts shown on all the Forms SSA-1099 and



Railroad Forms RRB-1099 you receive for the year to de- Form (and Instructions) termine the total amounts received and repaid, 1040-ES 1040-ES Estimated Tax for Individuals and taxes withheld for that year. See the Appen-Retirement dix at the end of Pub. 915 for more information. SSA-1099 SSA-1099 Social Security Benefit



Benefits Note: When the term “benefits” is used in Statement this chapter, it applies to both social security RRB-1099 RRB-1099 Payments by the Railroad benefits and the SSEB portion of tier 1 railroad Retirement Board retirement benefits.



Reminders W-4V W-4V Voluntary Withholding Request my Social Security account. Social security beneficiaries may quickly and easily obtain in-For these and other useful items, go to IRS.gov/ formation from the SSA’s website with a my So-Lines 1a through 1z on Forms 1040 and Forms . cial Security account to: 1040-SR. Line 1 was expanded and there are • lines 1a through 1z. Some amounts that in prior Keep track of your earnings and verify Are Any of Your years were reported on Form 1040, and some them every year, Benefits Taxable? amounts reported on Form 1040-SR, are now • Get an estimate of your future benefits if reported on Schedule 1. you are still working, To find out whether any of your benefits may be • Scholarships and fellowship grants are • Get a letter with proof of your benefits if taxable, compare the base amount (explained now reported on Schedule 1, line 8r. you currently receive them, later) for your filing status with the total of: • Pension or annuity from a nonqualified de-• Change your address, 1. One-half of your benefits; plus ferred compensation plan or a nongovern-• Start or change your direct deposit, mental section 457 plan is now reported on 2. All your other income, including tax-ex-Schedule 1, line 8t. • Get a replacement Medicare card, and empt interest.



• Wages earned while incarcerated are now • Get a replacement Form SSA-1099 for the Exclusions. When making this comparison, reported on Schedule 1, line 8u. tax season. don’t reduce your other income by any exclu-



Introduction • • Income earned by bona fide residents of Tier 2 benefits. American Samoa or Puerto Rico. • Vested dual benefits. Children’s benefits. The rules in this chapter • Supplemental annuity benefits. apply to benefits received by children. See Who This chapter explains the federal income tax For information on these benefits, see Pub. 575, is taxed , later. rules for social security benefits and equivalent Pension and Annuity Income. tier 1 railroad retirement benefits. It explains the Figuring total income. To figure the total of This chapter doesn’t cover the tax rules for following topics. one-half of your benefits plus your other in- social security benefits reported on Form come, use Worksheet 7-1 , discussed later. If • How to figure whether your benefits are SSA-1042S, Social Security Benefit Statement; the total is more than your base amount, part of taxable. or Form RRB-1042S, Statement for Nonresi- your benefits may be taxable. dent Alien Recipients of Payments by the Rail- • How to report your taxable benefits. If you are married and file a joint return for road Retirement Board. For information about 2025, you and your spouse must combine your • How to use the Social Security Benefits these benefits, see Pub. 519, U.S. Tax Guide for incomes and your benefits to figure whether any Worksheet (with examples). Aliens; and Pub. 915. of your combined benefits are taxable. Even if • Pub. 915, Social Security and Equivalent Rail- What isn’t covered in this chapter. This • Employer-provided adoption benefits, chapter doesn’t cover the tax rules for the fol- road Retirement Benefits, for details. If you are • Interest on education loans, lowing railroad retirement benefits. married filing separately and you lived apart • Foreign earned income or foreign housing, • Non-social security equivalent benefit from your spouse for all of 2025, check the box or (NSSEB) portion of tier 1 benefits. on line 6d. line 6. Line 6c includes a checkbox for go to SSA.gov/myaccount. • Interest from qualified U.S. savings bonds, Lump-Sum Election. See Lump-Sum Election in Form 1040 and 1040-SR have changed For more information and to set up an account, sions for:



tirement, survivor, and disability benefits. They Social security benefits include monthly re-Deductions related to your benefits and This chapter also doesn’t cover the tax rules your spouse didn’t receive any benefits, you for foreign social security benefits. These bene-how to treat repayments that are more than must add your spouse’s income to yours to fig-fits are taxable as annuities, unless they are ex-the benefits you received during the year. ure whether any of your benefits are taxable. empt from U.S. tax or treated as a U.S. social security benefit under a tax treaty. If the only income you received during TIP 2025 was your social security or the don’t include Supplemental Security Income SSEB portion of tier 1 railroad retire-(SSI) payments, which aren’t taxable. Useful Items ment benefits, your benefits generally aren’t tax-Equivalent tier 1 railroad retirement benefits You may want to see: able and you probably don’t have to file a return. are the part of tier 1 benefits that a railroad em-If you have income in addition to your benefits, ployee or beneficiary would have been entitled Publication you may have to file a return even if none of to receive under the social security system. 501 501 Dependents, Standard Deduction, your benefits are taxable. See Do I Have To File They are commonly called the social security and Filing Information a Return? in chapter 1, earlier; Pub. 501; or your

62 Chapter 7 Social Security and Equivalent Railroad Retirement Publication 17 (2025)

Benefits tax return instructions to find out if you have to Example. You are over 65 and are filing a benefits. For example, if you and your child re-file a return. single return for 2025 and you received social ceive benefits, but the check for your child is

security benefits during the year. In January made out in your name, you must use only your

Base amount. Your base amount is: 2026, you received a Form SSA-1099 showing part of the benefits to see whether any benefits



Worksheet 7-1. You can use Worksheet 7-1 to • net benefits of $1,500 in box 5. You also re- are taxable to you. One-half of the part that be- $25,000 if you are single, head of house- ceived a taxable pension of $17,000 and inter- longs to your child must be added to your child’s hold, or qualifying surviving spouse; est income of $700. You didn’t have any tax-ex- other income to see whether any of those bene- • $25,000 if you are married filing separately empt interest income. Your benefits aren’t fits are taxable to your child. and lived apart from your spouse for all of taxable for 2025 because your income, as fig- Repayment of benefits. Any repayment of 2025; ured in Worksheet 7-1, isn’t more than your benefits you made during 2025 must be sub- base amount ($25,000) for single. • $32,000 if you are married filing jointly; or tracted from the gross benefits you received in Even though none of your benefits are taxa- • $0 if you are married filing separately and 2025. It doesn’t matter whether the repayment ble, you must file a return for 2025 because your lived with your spouse at any time during was for a benefit you received in 2025 or in an taxable gross income ($18,450) exceeds the 2025. earlier year. If you repaid more than the gross minimum filing requirement amount for your fil- benefits you received in 2025, see Repayments ing status. More Than Gross Benefits , later. figure the amount of income to compare with Your gross benefits are shown in box 3 of your base amount. This is a quick way to check Filled-in Worksheet 7-1. A Quick Way To Form SSA-1099 or RRB-1099. Your repayments whether some of your benefits may be taxable. Check if Your Benefits May Be Taxable are shown in box 4. The amount in box 5 shows

Note: If you plan to file a joint income tax return, your net benefits for 2025 (box 3 minus box 4).

Worksheet 7-1. A Quick Way To Check if Your include your spouse's amounts, if any, on lines Use the amount in box 5 to figure whether any

Benefits May Be Taxable A, C, and D. of your benefits are taxable.



Note: If you plan to file a joint income tax return, Tax withholding and estimated tax. You can A. Enter the total amount from include your spouse's amounts, if any, on lines choose to have federal income tax withheld box 5 of all your Forms A, C, and D. from your social security benefits and/or the SSA-1099 and RRB-1099. SSEB portion of your tier 1 railroad retirement A. Enter the total amount from Include the full amount of benefits. If you choose to do this, you must box 5 of all your Forms any lump-sum benefit complete a Form W-4V. SSA-1099 and RRB-1099. payments received in 2025, If you don’t choose to have income tax with- for 2025 and earlier years. Include the full amount of held, you may have to request additional with- any lump-sum benefit (If you received more than holding from other income or pay estimated tax payments received in 2025, one form, combine the during the year. For details, see chapter 4 , ear- for 2025 and earlier years. amounts from box 5 and lier; Pub. 505; or the Instructions for Form enter the total.) (If you received more than . . . . . . . A. $1,500 1040-ES. one form, combine the Note: If the amount on line A is zero or less,

amounts from box 5 and stop here; none of your benefits are taxable this How To Report Your enter the total.) . . . . . . . A. year.

Note: If the amount on line A is zero or less, B. Multiply line A by 50% Benefits

stop here; none of your benefits are taxable this (0.50) . . . . . . . . . . . . . B. 750

year. If part of your benefits are taxable, you must use C. Enter your total income that



B. Multiply line A by 50% Form 1040 or 1040-SR. is taxable (excluding line A), (0.50) . . . . . . . . . . . . . B. such as pensions, wages, Reporting on Form 1040 or 1040-SR. Report interest, ordinary dividends,

C. Enter your total income that your net benefits (the total amount from box 5 of is taxable (excluding line A), and capital gain all your Forms SSA-1099 and RRB-1099) on distributions. Don’t reduce

such as pensions, wages, line 6a and the taxable part on line 6b. If you are

interest, ordinary dividends, your income by any married filing separately and you lived apart



distributions. Don’t reduce (listed earlier), or on line 6d. exemptions and capital gain deductions, exclusions from your spouse for all of 2025, check the box

deductions, Benefits not taxable. Report your net benefits exclusions D. Enter any tax-exempt your income by any . . . . . . . . . . C. 17,700

(listed earlier), or (the total amount from box 5 of all your Forms



D. Enter any tax-exempt exemptions interest income, such as SSA-1099 and RRB-1099) on Form 1040 or . . . . . . . . . . C. interest on municipal 1040-SR, line 6a. Enter -0- on Form 1040 or bonds . . . . . . . . . . . . D. -0- 1040-SR, line 6b. If you are married filing sepa- interest income, such as E. Add lines B, C, and D . . . E. $18,450 rately and lived apart from your spouse the en- interest on municipal tire year, check the box on line 6d of Form 1040 Note: Compare the amount on line E to your bonds . . . . . . . . . . . . . D. or 1040-SR and see Instructions for Form 1040. base amount for your filing status. If the

E. Add lines B, C, and D . . . . E. amount on line E equals or is less than the base

Note: Compare the amount on line E to your amount for your filing status, none of your How Much Is Taxable?

base amount for your filing status. If the benefits are taxable this year. If the amount on

amount on line E equals or is less than the base line E is more than your base amount, some of If part of your benefits are taxable, how much is

amount for your filing status, none of your your benefits may be taxable and you will need taxable depends on the total amount of your

benefits are taxable this year. If the amount on to complete Worksheet 1 in Pub. 915 (or the benefits and other income. Generally, the higher

line E is more than your base amount, some of Social Security Benefits Worksheet in your tax that total amount, the greater the taxable part of



to complete Worksheet 1 in Pub. 915 (or the taxable, but you otherwise must file a tax return, Maximum taxable part. Generally, up to 50% Social Security Benefits Worksheet in your tax your benefits may be taxable and you will need form instructions). If none of your benefits are your benefits.

form instructions). If none of your benefits are of your benefits will be taxable. However, up to Report Your Benefits. see Benefits not taxable, later, under How To

taxable, but you must otherwise file a tax return,

see Benefits not taxable, later, under How To Who is taxed. Benefits are included in the tax-

Report Your Benefits. able income (to the extent they are taxable) of

the person who has the legal right to receive the



Publication 17 (2025) Chapter 7 Social Security and Equivalent Railroad Retirement 63

Benefits 85% of your benefits can be taxable if either of Because the earlier year’s taxable ben- Note: If you are married filing separately



the following situations applies to you. efits are included in your 2025 income, ! and you lived with your spouse at any no adjustment is made to the earlier CAUTION time in 2025, skip lines 9 through 16, • The total of one-half of your benefits and all multiply line 8 by 85% (0.85), and enter year's return. Don’t file an amended return for your other income is more than $34,000 the result on line 17. Then, go to line 18. the earlier year. ($44,000 if you are married filing jointly). 10. Is the amount on line 9 less than the

• You are married filing separately and lived amount on line 8? Examples with your spouse at any time during 2025. STOP



that worksheet or Worksheet 1 in Pub. 915, un- efits. filing separately and you lived apart from your spouse for all of 2025, check less any of the following situations applies to the box on Form 1040 or 1040-SR, Example 1. You are single and file Form you. line 6d. 1040 for 2025. You received the following in-Yes. Subtract line 9 from line 8 . . . . . 6,980 1. You contributed to a traditional individual come in 2025. 11. Enter $12,000 if married filing jointly; or can use to figure your taxable benefits is in the The following are a few examples you can use 1040-SR, line 6b. If you are married as a guide to figure the taxable part of your ben-Instructions for Form 1040. You can use either Which worksheet to use. A worksheet you taxable. Enter -0- on Form 1040 or No. None of your benefits are



retirement arrangement (IRA) and you or $9,000 if single, head of household, your spouse is covered by a retirement Fully taxable pension . . . . . . . . $18,600 qualifying surviving spouse, or married plan at work. In this situation, you must Wages from part-time job . . . . . 9,400 filing separately and you lived apart use the special worksheets in Appendix B Taxable interest income . . . . . . 990 9,000 from your spouse for all of 2025 . . . . . of Pub. 590-A to figure both your IRA de-12. Subtract line 11 from line 10. If zero or $28,990 Total duction and your taxable benefits. . . . . . . . . . . . . . . . . . . less, enter -0-. . . . . . . . . . . . . . .-0-



Lump-sum election. You must include the tax-2. Situation 1 doesn’t apply and you take an 13. Enter the smaller of line 10 You also received social security benefits or line 11 . . . . . . . . . . . . . . . . . 6,980 exclusion for interest from qualified U.S. during 2025. The Form SSA-1099 you received 14. Multiply line 13 by 50% (0.50) . . . . . . 3,490 savings bonds (Form 8815), for adoption in January 2026 shows $5,980 in box 5. To fig-15. Enter the smaller of line 2 or line 14 . . 2,990 benefits (Form 8839), for foreign earned ure your taxable benefits, you complete the income or housing (Form 2555), or for in-16. Multiply line 12 by 85% (0.85). If line 12 worksheet shown here. is zero, enter -0-. . . . . . . . . . . . .-0- come earned in American Samoa (Form Filled-in Worksheet 1. 4563) or Puerto Rico by bona fide resi-17. Add lines 15 and 16 . . . . . . . . . . . 2,990 dents. In this situation, you must use Figuring Your Taxable Benefits 18. Multiply line 1 by 85% (0.85) . . . . . . . 5,083 Worksheet 1 in Pub. 915 to figure your tax-19. Taxable benefits. Enter the smaller of able benefits. 1. Enter the total amount from line 17 or line 18. Also enter this amount $2,990 on Form 1040 or 1040-SR, line 6b . . . box 5 of all your Forms 3. You received a lump-sum payment for an SSA-1099 and RRB-1099. Also earlier year. In this situation, also complete enter this amount on Form 1040 The amount on line 19 of your worksheet Worksheet 2 or 3 and Worksheet 4 in Pub. or 1040-SR, line 6a . . . . . . . $5,980 shows that $2,990 of your social security bene-915. See Lump-sum election next. 2. Multiply line 1 by 50% (0.50) . . . . . . . 2,990 fits are taxable. On line 6a of your Form 1040, you enter your net benefits of $5,980. On 3. Combine the amounts from Form 1040 or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7a, line 6b, you enter your taxable benefits of able part of a lump-sum (retroactive) payment and 8 . . . . . . . . . . . . . . . . . . . 28,990 $2,990. of benefits received in 2025 in your 2025 in-4. Enter the amount, if any, from Form come, even if the payment includes benefits for 1040 or 1040-SR, line 2a . . . . . . . .-0-Example 2. Casey and Pat Hopkins file a an earlier year. 5. Enter the total of any exclusions/ joint return on Form 1040 for 2025. Casey is re-Check the box on Form 1040, or Form adjustments for: tired and received a fully taxable pension of • TIP 1040-SR, line 6c, if you elect to use the Adoption benefits (Form 8839, $15,500. Casey also received social security

lump-sum election method for your line 30), benefits, and Casey’s Form SSA-1099 for 2025

benefits. If any of your benefits are taxable for • Foreign earned income or housing shows net benefits of $5,600 in box 5. Pat



able to reduce the taxable amount with the Pat’s IRA account of $1,000 and isn’t covered (Form 4563, line 15) or Puerto lump-sum election. See Lump-Sum Election in by a retirement plan at work. Casey and Pat Rico . . . . . . . . . . . . . . . . -0- Pub. 915 for details. have two savings accounts with a total of $250 6. Combine lines 2, 3, 4, and 5 above . . . 31,980 in taxable interest income. They complete 7. Enter the total of the amounts from ment that was for an earlier year, you may be • Certain income of bona fide $14,000. Pat made a deductible payment to residents of American Samoa 2025 and they include a lump-sum benefit pay- (Form 2555, lines 45 and 50), and worked during the year and had wages of



SSA and RRB pay to many of their beneficia-TIP This type of lump-sum benefit payment Worksheet 1, shown below, entering $29,750 Schedule 1 (Form 1040), lines 11 shouldn’t be confused with the ($15,500 + $14,000 + $250) on line 3. They find through 20, and 23 and 25 . . . . . . . . -0- lump-sum death benefit that both the none of Casey’s social security benefits are tax- 8. Is the amount on line 7 less than the able. On Form 1040, they enter $5,600 on amount on line 6? ries. No part of the lump-sum death benefit is line 6a and -0- on line 6b. subject to tax. STOP No. None of your social security



ure the taxable part of the total benefits re-Generally, you use your 2025 income to fig- benefits are taxable. Enter -0- on Form 1040 or 1040-SR, line 6b. Yes. Subtract line 7 from line 6 . . . . . 31,980 ceived in 2025. However, you may be able to 9. If you are: figure the taxable part of a lump-sum payment • Married filing jointly, enter for an earlier year separately, using your income $32,000; or for the earlier year. You can elect this method if • Single, head of household, it lowers your taxable benefits. qualifying surviving spouse, or

Making the election. If you received a married filing separately and you

lump-sum benefit payment in 2025 that includes lived apart from your spouse for benefits for one or more earlier years, follow the all of 2025, enter $25,000 25,000 . . . .

instructions in Pub. 915 under Lump-Sum Elec-

tion to see whether making the election will

lower your taxable benefits. That discussion

also explains how to make the election.

64 Chapter 7 Social Security and Equivalent Railroad Retirement Publication 17 (2025)

Benefits

Filled-in Worksheet 1. 11. Enter $12,000 if married filing jointly; or Filled-in Worksheet 1.

Figuring Your Taxable Benefits $9,000 if single, head of household, Figuring Your Taxable Benefits

qualifying surviving spouse, or married

1. Enter the total amount from filing separately and you lived apart Before you begin:

box 5 of all your Forms from your spouse for all of 2025 . . . . . • If you are married filing separately and you lived SSA-1099 and RRB-1099. Also 12. Subtract line 11 from line 10. If zero or apart from your spouse for all of 2025, check enter this amount on Form 1040 less, enter -0-. . . . . . . . . . . . . . . the box on Form 1040 or 1040-SR, line 6d. or 1040-SR, line 6a . . . . . . . $5,600 13. Enter the smaller of line 10 • Don’t use this worksheet if you repaid benefits



2. Multiply line 1 by 50% (0.50) . . . 2,800 or line 11 . . . . . . . . . . . . . . . . . in 2025 and your total repayments (box 4 of 14. Multiply line 13 by 50% (0.50) . . . . . . Forms SSA-1099 and RRB-1099) were more 3. Combine the amounts from Form than your gross benefits for 2025 (box 3 of 1040 or 1040-SR, lines 1z, 2b, 15. Enter the smaller of line 2 or line 14 . . 29,750 3b, 4b, 5b, 7a, and 8 . . . . . . . Forms SSA-1099 and RRB-1099). None of your 16. Multiply line 12 by 85% (0.85). If line 12 benefits are taxable for 2025. For more 4. Enter the amount, if any, from is zero, enter -0-. . . . . . . . . . . . . information, see Repayments More Than Gross Form 1040 or 1040-SR, 17. Add lines 15 and 16 . . . . . . . . . . .-0-line 2a . . . . . . . . . . . . . . . Benefits , later. 18. Multiply line 1 by 85% (0.85) . . . . . . . • If you are filing Form 8815, Exclusion of Interest 19. Taxable benefits. Enter the smaller of 5. Enter the total of any exclusions/ From Series EE and I U.S. Savings Bonds line 17 or line 18. Also enter this amount adjustments for: Issued After 1989, don’t include the amount • Adoption benefits (Form 8839, on Form 1040 or 1040-SR, line 6b . . . from line 2b of Form 1040 or 1040-SR on line 3

line 30), of this worksheet. Instead, include the amount

• Foreign earned income or housing Example 3. Jamie and Jessie Johnson file from Schedule B (Form 1040), line 2.



• (Form 2555, lines 45 and 50), and a joint return on Form 1040 for 2025. Jamie is a 1. Enter the total amount from Certain income of bona fide retired railroad worker and in 2025 received the box 5 of all your Forms residents of American Samoa SSEB portion of tier 1 railroad retirement bene-SSA-1099 and RRB-1099. Also (Form 4563, line 15) or Puerto fits. Jamie’s Form RRB-1099 shows $10,000 in enter this amount on Form 1040 Rico . . . . . . . . . . . . . . . .-0-box 5. Jessie is a retired government worker or 1040-SR, line 6a . . . . . . .$10,000

6. Combine lines 2, 3, 4, and 5 and received a fully taxable pension of $38,000. 2. Multiply line 1 by 50% (0.50) . . . . . . . 5,000

above . . . . . . . . . . . . . . . 32,550 They had $2,300 in taxable interest income plus 3. Combine the amounts from Form 1040

7. Enter the total of the amounts interest of $200 on a qualified U.S. savings or 1040-SR, lines 1z, 2b, 3b, 4b, 5b, 7a,

from Schedule 1 (Form 1040), bond. The savings bond interest qualified for 40,500 and 8 . . . . . . . . . . . . . . . . . . . lines 11 through 20, and 23 and the exclusion. They figure their taxable benefits 4. Enter the amount, if any, from Form 25 . . . . . . . . . . . . . . . . . 1,000 by completing Worksheet 1, shown below. Be- 1040 or 1040-SR, line 2a . . . . . . . . -0-



8. Is the amount on line 7 less than the cause they have qualified U.S. savings bond in- 5. Enter the total of any exclusions/ amount on line 6? terest, they follow the note at the beginning of adjustments for: the worksheet and use the amount from line 2 of STOP No. None of your social security • Adoption benefits (Form 8839, their Schedule B (Form 1040) on line 3 of the benefits are taxable. Enter -0- on Form line 30), worksheet instead of the amount from line 2b of 1040 or 1040-SR, line 6b. • Foreign earned income or housing their Form 1040. On line 3 of the worksheet, Yes. Subtract line 7 from (Form 2555, lines 45 and 50), and 31,550 they enter $40,500 ($38,000 + $2,500). line 6 . . . . . . . . . . . . . . . • Certain income of bona fide



9. If you are: residents of American Samoa • Married filing jointly, enter (Form 4563, line 15) or Puerto -0-Rico

$32,000; or . . . . . . . . . . . . . . . .



Note: If you are married filing separately • Single, head of household, 6. Combine lines 2, 3, 4, and 5 above . . . 45,500 qualifying surviving spouse, or 7. Enter the total of the amounts from married filing separately and you Schedule 1 (Form 1040), lines 11 lived apart from your spouse for through 20, and 23 and 25 . . . . . . . .-0-32,000 all of 2025, enter $25,000 . . . . 8. Is the amount on line 7 less than the amount on line 6? and you lived with your spouse at any



10. Is the amount on line 9 less than the the result on line 17. Then, go to line 18. benefits are taxable. Enter -0- on Form 1040 or 1040-SR, line 6b. Yes. Subtract line 7 from line 6 . . . . . 45,500 amount on line 8? multiply line 8 by 85% (0.85), and enter No. None of your social security time in 2025, skip lines 9 through 16, STOP

9. If you are:

No. STOP • Married filing jointly, enter None of your benefits are

taxable. Enter -0- on Form 1040 or $32,000; or 1040-SR, line 6b. If you are married • Single, head of household, filing separately and you lived apart qualifying surviving spouse, or



the box on Form 1040 or 1040-SR, lived apart from your spouse for 32,000 all of 2025, enter $25,000 from your spouse for all of 2025, check married filing separately and you line 6d. . . . . Yes. Subtract line 9 from line 8 . . . . .



Publication 17 (2025) Chapter 7 Social Security and Equivalent Railroad Retirement 65

Benefits





Note: If you are married filing separately figure in parentheses) and none of your benefits




and you lived with your spouse at any will be taxable. Don’t use a worksheet in this 8. time in 2025, skip lines 9 through 16, case. If you receive more than one form, a neg-multiply line 8 by 85% (0.85), and enter ative figure in box 5 of one form is used to offset the result on line 17. Then, go to line 18. a positive figure in box 5 of another form for that



10. Is the amount on line 9 less than the same year. Other Income amount on line 8? If you have any questions about this nega-

STOP tive figure, contact your local SSA office or your

No. None of your benefits are local RRB field office. taxable. Enter -0- on Form 1040 or

1040-SR, line 6b. If you are married Joint return. If you and your spouse file a joint What’s New filing separately and you lived apart return, and your Form SSA-1099 or RRB-1099 from your spouse for all of 2025, check has a negative figure in box 5, but your spouse’s



line 6d. compensation, you may be able to claim a de- form from the amount in box 5 of your spouse’s Yes. Subtract line 9 from line 8 . . . . . 13,500 duction for qualified overtime compensation. the box on Form 1040 or 1040-SR, No tax on overtime. If you received overtime doesn’t, subtract the amount in box 5 of your

form. You do this to get your net benefits when

11. Enter $12,000 if married filing jointly; or See Overtime, later. figuring if your combined benefits are taxable.

qualifying surviving spouse, or married No tax on tips. If you received tips, you may Example. Ryan and Jordan file a joint re- $9,000 if single, head of household,



13. Enter the smaller of line 10 less, enter -0- 1,500 . . . . . . . . . . . . . . . Form SSA-1099 and the amount in box 5 was ($500). Ryan and Jordan will use $2,500 Reminders ($3,000 minus $500) as the amount of their net 12,000 or line 11 . . . . . . . . . . . . . . . . . benefits when figuring if any of their combined 14. Multiply line 13 by 50% (0.50) . . . . . . 6,000 Certain relief payments made to individuals benefits are taxable. 12. Subtract line 11 from line 10. If zero or from your spouse for all of 2025 Tips, later. . . . . . 12,000 showing $3,000 in box 5. Jordan also received filing separately and you lived apart be able to claim a deduction for qualified tips on turn for 2025. Ryan received Form SSA-1099 your tax return. See

15. Enter the smaller of line 2 or line 14 . . 5,000 affected by the East Palestine train derail-16. Multiply line 12 by 85% (0.85). If line 12 Repayment of benefits received in an ear- ment are not taxable. If you received relief

is zero, enter -0- 1,275 . . . . . . . . . . . . . lier year. If the total amount shown in box 5 of payments from a government agency, Norfolk

17. Add lines 15 and 16 . . . . . . . . . . . 6,275 all of your Forms SSA-1099 and RRB-1099 is a Southern Railway, or its subsidiary, insurer, 18. Multiply line 1 by 85% (0.85) negative figure, you may be able to deduct part . . . . . . . 8,500 agent, or a related person due to being affected 19. Taxable benefits. Enter the smaller of of this negative figure that represents benefits by the February 3, 2023, East Palestine, Ohio,

line 17 or line 18. Also enter this amount you included in gross income in an earlier year if train derailment, these payments may be non-

on Form 1040 or 1040-SR, line 6b the figure is more than $3,000. If the figure is . . . $6,275 taxable. See Pub. 547 for more information.

More than 50% of Jamie’s net benefits are Qualified wildfire relief payments are not $3,000 or less, it is a miscellaneous itemized

taxable because the income on line 8 of the taxable. If you received a qualified wildfire re- deduction and can no longer be deducted.

(See tion is more than $3,000, you should figure your ble. See Pub. 547 for more information. Maximum taxable part under How Much Is tax two ways. worksheet ($45,500) is more than $44,000. Deduction exceeds $3,000. If this deduc- lief payment, those payments may be nontaxa-

Taxable, earlier.) Jamie and Jessie enter Temporary allowance of 100% business



Form 1040, line 6b. deduction included on Schedule A (Form the Taxpayer Certainty and Disaster Tax Relief 1040), line 16. $10,000 on Form 1040, line 6a; and $6,275 on 1. Figure your tax for 2025 with the itemized meal deduction has expired. Section 210 of

Deductions Related to Act of 2020 provided for the temporary allow-

Your Benefits steps. food or beverages provided by a restaurant and 2. Figure your tax for 2025 in the following ance of a 100% business meal deduction for

a. Figure the tax without the itemized de- before January 1, 2023. paid or incurred after December 31, 2020, and

You may be entitled to deduct certain amounts duction included on Schedule A related to the benefits you receive. (Form 1040), line 16. Unemployment compensation. If you re-



on your tax return in an earlier year. If you re- a repayment of benefits, refigure your cess your information through your state’s web- taxable benefits as if your total bene- site to get your electronic Form 1099-G. ceived a lump-sum payment from the SSA or fits for the year were reduced by that part of the negative figure. Then refig- RRB, and you had to repay the employer or in- ure the tax for that year. surance company for the disability payments, disability payments from your employer or an in- ments, through the mail, you may need to ac- part of the negative figure represents receive Form 1099-G, Certain Government Pay- surance company that you included as income Disability payments. You may have received b. For each year after 1983 for which ceived unemployment compensation but did not



you can take an itemized deduction for the part c. Subtract the total of the refigured tax of the payments you included in gross income Introduction amounts in (b) from the total of your You must include on your return all items of in-in the earlier year. If the amount you repay is actual tax amounts. come you receive in the form of money, prop-more than $3,000, you may be able to claim a erty, and services unless the tax law states that tax credit instead. Claim the deduction or credit d. Subtract the result in (c) from the re-you don’t include them. Some items, however, in the same way explained under Repayment of sult in (a). are only partly excluded from income. This benefits received in an earlier year under Re-Compare the tax figured in methods 1 and 2. chapter discusses many kinds of income and payments More Than Gross Benefits next. Your tax for 2025 is the smaller of the two explains whether they’re taxable or nontaxable.



Repayments More Than amounts. If method 1 results in less tax, take • Income that’s taxable must be reported on the itemized deduction on Schedule A (Form your tax return and is subject to tax. 1040), line 16. If method 2 results in less tax, Gross Benefits • Income that’s nontaxable may have to be claim a credit for the amount from step 2c shown on your tax return but isn’t taxable. above on Schedule 3 (Form 1040), line 13z. En- In some situations, your Form SSA-1099 or ter “I.R.C. 1341” on the entry line. If both meth- This chapter begins with discussions of the RRB-1099 will show that the total benefits you ods produce the same tax, deduct the repay- following income items. repaid (box 4) are more than the gross benefits ment on Schedule A (Form 1040), line 16. (box 3) you received. If this occurred, your net • Bartering. benefits in box 5 will be a negative figure (a • Canceled debts.

66 Chapter 8 Other Income Publication 17 (2025)





• Sales parties at which you’re the host or provide to members, which you can use to pur- ment of your mortgage loan, the amount of the


hostess. chase goods or services offered by other mem- discount is canceled debt. You must include the



These discussions are followed by brief discus-• bers of the barter club. The club subtracts credit canceled amount in your income. Life insurance proceeds. units from your account when you receive Mortgage relief upon sale or other disposi-• Partnership income. goods or services from other members. You tion. If you’re personally liable for a mortgage must include in your income the value of the • S corporation income. (recourse debt), and you’re relieved of the mort-credit units that are added to your account, • Recoveries (including state income tax re-gage when you dispose of the property, you even though you may not actually receive goods funds). may realize gain or loss up to the fair market or services from other members until a later tax value of the property. Also, to the extent the • Rents from personal property. year. mortgage discharge exceeds the fair market • Repayments. value of the property, it’s income from discharge Example 3. You own a small apartment of indebtedness unless it qualifies for exclusion • Royalties. building. In return for 6 months rent-free use of under Excluded debt , later. Report any income an apartment, an artist gives you a work of art • Unemployment benefits. from discharge of indebtedness on nonbusi-she created. You must report as rental income ness debt that doesn’t qualify for exclusion as • Welfare and other public assistance bene-on Schedule E (Form 1040), Supplemental In-other income on Schedule 1 (Form 1040), fits. come and Loss, the fair market value of the art-line 8c. work, and the artist must report as income on If you aren’t personally liable for a mortgage Schedule C (Form 1040) the fair rental value of sions of other income items. (nonrecourse debt), and you’re relieved of the the apartment. mortgage when you dispose of the property Useful Items Form 1099-B from barter exchange. If you (such as through foreclosure), that relief is inclu-exchanged property or services through a bar-You may want to see: ded in the amount you realize. You may have a ter exchange, Form 1099-B, Proceeds From taxable gain if the amount you realize exceeds Broker and Barter Exchange Transactions, or a your adjusted basis in the property. Report any Publication similar statement from the barter exchange gain on nonbusiness property as a capital gain. 502 502 Medical and Dental Expenses should generally be sent to you by February 15, See Pub. 4681 for more information. 2026 (if it's not a weekend or holiday). It should 504 504 Divorced or Separated Individuals Stockholder debt. If you’re a stockholder in a show the value of cash, property, services, corporation and the corporation cancels or for-credits, or scrip you received from exchanges 523 523 Selling Your Home gives your debt to it, the canceled debt is a con-during 2025. The IRS will also receive a copy of 525 525 Taxable and Nontaxable Income structive distribution that’s generally dividend in-Form 1099-B. come to you. For more information, see Pub. 544 544 Sales and Other Dispositions of Canceled Debts Assets 542, Corporations. If you’re a stockholder in a corporation and



For these and other useful items, go to 547 547 Casualties, Disasters, and Thefts you cancel a debt owed to you by the corpora- In most cases, if a debt you owe is canceled or tion, you generally don’t realize income. This is forgiven, other than as a gift or bequest, you 550 550 Investment Income and Expenses because the canceled debt is considered as a must include the canceled amount in your in- 4681 4681 contribution to the capital of the corporation Canceled Debts, Foreclosures, come. You have no income from the canceled equal to the amount of debt principal that you Repossessions, and Abandonments debt if it’s intended as a gift to you. A debt in- canceled. cludes any indebtedness for which you’re liable IRS.gov/ or which attaches to property you hold. Repayment of canceled debt. If you included Forms . a canceled amount in your income and later pay If the debt is a nonbusiness debt, report the the debt, you may be able to file a claim for re- Bartering canceled amount on Schedule 1 (Form 1040), fund for the year the amount was included in in- line 8c. If it’s a business debt, report the amount come. You can file a claim on Form 1040-X, on Schedule C (Form 1040), (or on Schedule F Bartering is an exchange of property or serv- Amended U.S. Individual Income Tax Return, if ices. You must include in your income, at the (Form 1040), Profit or Loss From Farming, if the the statute of limitations for filing a claim is still time received, the fair market value of property debt is farm debt and you’re a farmer). open. The statute of limitations generally



or services you receive in bartering. If you ex- doesn’t end until 3 years after the due date of Form 1099-C. If a federal government agency, change services with another person and you your original return. financial institution, or credit union cancels or both have agreed ahead of time on the value of forgives a debt you owe of $600 or more, you the services, that value will be accepted as fair will receive a Form 1099-C, Cancellation of Exceptions market value unless the value can be shown to Debt. The amount of the canceled debt is be otherwise. shown in box 2. There are several exceptions to the inclusion of



ule C (Form 1040), Profit or Loss From Busi-Generally, you report this income on Sched- canceled debt in income. These are explained Interest included in canceled debt. If any next. interest is forgiven and included in the amount ness. However, if the barter involves an ex- of canceled debt in box 2, the amount of inter- Student loans. Generally, if you are responsi- change of something other than services, such est will also be shown in box 3. Whether or not ble for making loan payments, and the loan is as in Example 3 below, you may have to use an- you must include the interest portion of the can- canceled or repaid by someone else, you must other form or schedule instead. celed debt in your income depends on whether include the amount that was canceled or paid on your behalf in your gross income for tax pur- the interest would be deductible when you paid Example 1. You’re a self-employed attor- it. See Deductible debt under Exceptions, later. poses. However, in certain circumstances, you ney who performs legal services for a client, a If the interest wouldn’t be deductible (such may be able to exclude amounts from gross in- small corporation. The corporation gives you as interest on a personal loan), include in your come as a result of the cancellation or repay- shares of its stock as payment for your services. income the amount from box 2 of Form 1099-C. ment of certain student loans. These exclusions You must include the fair market value of the If the interest would be deductible (such as on a are for: shares in your income on Schedule C (Form business loan), include in your income the net • Student loan cancellation due to meeting 1040) in the year you receive them. amount of the canceled debt (the amount certain work requirements; shown in box 2 less the interest amount shown Example 2. You’re self-employed and a • Cancellation of certain loans after Decem- in box 3). member of a barter club. The club uses “credit ber 31, 2020, and before January 1, 2026 units” as a means of exchange. It adds credit Discounted mortgage loan. If your financial (see Special rule for student loan units to your account for goods or services you institution offers a discount for the early pay-

Publication 17 (2025) Chapter 8 Other Income 67

discharges for 2021 through 2025, later); Plan Act of 2021 modified the treatment of stu- action, or any other loan that is secured by or dent loan forgiveness for discharges in 2021 real property or a dwelling.



Exclusion for student loan cancellation due • through 2025. Generally, if you are responsible Certain student loan repayment assistance Private educational lender. A private educa-for making loan payments, and the loan is can-programs. tional lender is one of the following. celed or repaid by someone else, you must in-clude the amount that was canceled or paid on • A financial institution that solicits, makes, to meeting certain work requirements. If your behalf in your gross income for tax purpo- or extends private education loans.



your student loan is canceled in part or in whole ses. However, in certain circumstances, you • A federal credit union that solicits, makes, in 2025 due to meeting certain work require-may be able to exclude this amount from gross or extends private education loans. ments, you may not have to include the can-income if the loan was one of the following. • Any other person engaged in the business celed debt in your income. To qualify for this • A loan for postsecondary educational ex-work-related exclusion, your loan must have of soliciting, making, or extending private penses. been made by a qualified lender to assist you in education loans. • attending an eligible educational organization A private education loan. The cancellation of your loan won’t described in section 170(b)(1)(A)(ii). In addition, • A loan from an educational organization ! qualify for tax-free treatment if it is can-the cancellation must be pursuant to a provision described in section 170(b)(1)(A)(ii). CAUTION celed because of services you per-in the student loan that all or part of the debt will formed for the private educational lender that • A loan from an organization exempt from be canceled if you work: made the loan or other organization that provi-tax under section 501(a) to refinance a stu-• For a certain period of time, ded the funds. dent loan.



• In certain professions, and See Pub. 4681 and Pub. 970 for more informa- Loan from an educational organization de-tion. • For any of a broad class of employers. scribed in section 170(b)(1)(A)(ii). This is



tax-exempt section 501(c)(3) organization and CAUTION ! The cancellation of your loan won’t any loan made by the organization if the loan is Loan for postsecondary educational expen- made: qualify for tax-free treatment if it was ses. This is any loan provided expressly for postsecondary education, regardless of made by an educational organization or • As part of an agreement with an entity de- whether provided through the educational or- scribed earlier under which the funds to ganization or directly to the borrower, if such was canceled because of the services you per- make the loan were provided to the educa- loan was made, insured, or guaranteed by one formed for either organization. See Exception , tional organization; or of the following. later. • Under a program of the educational organi- • The United States, or an instrumentality or zation that is designed to encourage its Educational organization described in agency thereof. students to serve in occupations with un- section 170(b)(1)(A)(ii). This is an educa- met needs or in areas with unmet needs • A state or territory of the United States; or tional organization that maintains a regular fac- where the services provided by the stu- the District of Columbia; or any political ulty and curriculum and normally has a regularly dents (or former students) are for or under subdivision thereof. enrolled body of students in attendance at the the direction of a governmental unit or place where it carries on its educational activi- • An eligible educational organization. tax-exempt section 501(c)(3) organization. ties. Eligible educational organization. An eligi- Educational organization described in sec- ble educational organization is generally any Qualified lenders. These include the fol- tion 170(b)(1)(A)(ii). This is an educational accredited public, nonprofit, or proprietary (pri- lowing. organization that maintains a regular faculty and vately owned profit-making) college, university, curriculum and normally has a regularly enrolled 1. The United States, or an instrumentality or vocational school, or other postsecondary edu- body of students in attendance at the place agency thereof. cational organization. Also, the organization where it carries on its educational activities. must be eligible to participate in a student aid 2. A state or territory of the United States; or The cancellation of your loan won’t program administered by the U.S. Department the District of Columbia; or any political qualify for tax-free treatment if it was of Education. subdivision thereof. ! CAUTION made by an educational organization, a An eligible educational organization also in- 3. A public benefit corporation that is tax ex- tax-exempt section 501(c)(3) organization, or a cludes certain educational organizations loca- empt under section 501(c)(3); and that private education lender (as defined in section ted outside the United States that are eligible to has assumed control of a state, county, or 140(a)(7) of the Truth in Lending Act) and was participate in a student aid program adminis- municipal hospital; and whose employees canceled because of the services you per- tered by the U.S. Department of Education. are considered public employees under formed for either such organization or private The educational organization should state law. education lender. See Exception , later. be able to tell you if it is an eligible edu- TIP 4. An educational organization described in cational organization. Section 501(c)(3) organization. This is section 170(b)(1)(A)(ii), if the loan is any corporation, community chest, fund, or made: Private education loan. A private education foundation organized and operated exclusively loan is a loan provided by a private educational a. As part of an agreement with an entity for one or more of the following purposes. lender that: described in (1), (2), or (3) under • Charitable. which the funds to make the loan were • Is not made, insured, or guaranteed under provided to the educational organiza- Title IV of the Higher Education Act of • Religious. tion; or 1965; and • Educational. b. Under a program of the educational • Is issued expressly for postsecondary edu- • Scientific. organization that is designed to en- cational expenses to a borrower, regard- courage its students to serve in occu- less of whether the loan is provided • Literary. pations with unmet needs or in areas through the educational organization that • Testing for public safety. with unmet needs where services pro- the student attends or directly to the bor- • Fostering national or international amateur vided by the students (or former stu- rower from the private educational lender. sports competition (but only if none of its dents) are for or under the direction of A private education loan does not include activities involve providing athletic facilities a governmental unit or a tax-exempt an extension of credit under an open-end or equipment). section 501(c)(3) organization. consumer credit plan, a reverse mortgage

Special rule for student loan discharges for transaction, a residential mortgage trans- • The prevention of cruelty to children or ani-

2021 through 2025. The American Rescue mals.

68 Chapter 8 Other Income Publication 17 (2025)

Exception. In most cases, the cancellation Forgiveness of Paycheck Protection Pro- Life Insurance

of a student loan made by an educational or- gram (PPP) loans. The forgiveness of a PPP

ganization because of services you performed loan creates tax-exempt income, so although Proceeds for that organization or another organization that you don't need to report the income from the provided the funds for the loan must be inclu- forgiveness of your PPP loan on Form 1040 or ded in gross income on your tax return. Life insurance proceeds paid to you because of 1040-SR, you do need to report certain informa-



ucational organization or a tax-exempt organi- I.R.B. 835, permits taxpayers to treat tax-ex- paid under an accident or health insurance pol-empt income resulting from the forgiveness of a zation, that loan may also be considered as icy or an endowment contract. However, inter-PPP loan as received or accrued (1) as, and to made by a qualified lender. The refinanced loan est income received as a result of life insurance the extent that, eligible expenses are paid or in-is considered made by a qualified lender if it’s proceeds may be taxable. curred; (2) when you apply for forgiveness of dent loan with another loan from an eligible ed- Revenue Procedure 2021-48, 2021-49 unless the policy was turned over to you for a price. This is true even if the proceeds were Refinanced loan. If you refinanced a stu- tion related to your PPP loan. the death of the insured person aren’t taxable

ization that is designed to encourage students made under a program of the refinancing organ- the PPP loan; or (3) when forgiveness of the Proceeds not received in installments. If

to serve in occupations with unmet needs or in PPP loan is granted. If you have tax-exempt in- death benefits are paid to you in a lump sum or

areas with unmet needs where the services re- come resulting from the forgiveness of a PPP other than at regular intervals, include in your in-

quired of the students are for or under the direc- loan, attach a statement to your return reporting come only the benefits that are more than the

tion of a governmental unit or a tax-exempt sec- each tax year for which you are applying Reve- amount payable to you at the time of the insured

tion 501(c)(3) organization. nue Procedure 2021-48, and which section of person's death. If the benefit payable at death

Revenue Procedure 2021-48 you are applying– isn’t specified, you include in your income the

Student loan repayment assistance. Stu- either section 3.01(1), (2), or (3). Any statement benefit payments that are more than the present dent loan repayments made to you are tax free should include the following information for value of the payments at the time of death. if you received them for any of the following. each PPP loan.

• Proceeds received in installments. If you

(NHSC) Loan Repayment Program. you can exclude part of each installment from 2. A statement that you are applying or ap- your income. The National Health Service Corps 1. Your name, address, and ITIN or SSN. receive life insurance proceeds in installments,

• A state education loan repayment program plied section 3.01(1), (2), or (3) of Reve-

eligible for funds under the Public Health To determine the excluded part, divide the nue Procedure 2021-48, and for what tax



• Any other state loan repayment or loan for- ally, the total lump sum payable at the death of 3. The amount of tax-exempt income from the insured person) by the number of install- Service Act. amount held by the insurance company (gener- year. giveness program that is intended to pro- forgiveness of the PPP loan that you are ments to be paid. Include anything over this ex-vide for the increased availability of health treating as received or accrued and for cluded part in your income as interest. services in underserved or health profes-what tax year. sional shortage areas (as determined by Surviving spouse. If your spouse died be-4. Whether forgiveness of the PPP loan has such state).

been granted as of the date you file your fore October 23, 1986, and insurance proceeds



! on a student loan to the extent pay- are received in installments, you can exclude up ments were made through your partici-You can’t deduct the interest you paid paid to you because of the death of your spouse return.

CAUTION Write “RP 2021-48” at the top of your at- to $1,000 a year of the interest included in the pation in any of the above programs. tached statement. installments. If you remarry, you can continue to



Deductible debt. You don’t have income from Surrender of policy for cash. If you surren-Host take the exclusion.

debt would be deductible. This exception ap- der a life insurance policy for cash, you must in- the cancellation of a debt if your payment of the

plies only if you use the cash method of ac- If you host a party or event at which sales are clude in income any proceeds that are more

counting. For more information, see chapter 5 of made, any gift or gratuity you receive for giving than the cost of the life insurance policy. In most

Pub. 334, Tax Guide for Small Business. the event is a payment for helping a direct seller cases, your cost (or investment in the contract)

make sales. You must report this item as in- is the total of premiums that you paid for the life

Price reduced after purchase. In most ca- come at its fair market value. insurance policy, less any refunded premiums,



ses, if the seller reduces the amount of debt you rebates, dividends, or unrepaid loans that Your out-of-pocket party expenses are sub- owe for property you purchased, you don’t have weren’t included in your income. ject to the 50% limit for meal expenses. For tax income from the reduction. The reduction of the You should receive a Form 1099-R showing years 2018 and after, no deduction is allowed debt is treated as a purchase price adjustment the total proceeds and the taxable part. Report for any expenses related to activities generally and reduces your basis in the property. these amounts on lines 5a and 5b of Form 1040 considered entertainment, amusement, or rec- or 1040-SR. Excluded debt. Don’t include a canceled debt reation. Taxpayers may continue to deduct 50% of the cost of business meals if the taxpayer (or in your gross income in the following situations. More information. For more information, see an employee of the taxpayer) is present and the Life Insurance Proceeds in Pub. 525. • The debt is canceled in a bankruptcy case food or beverages are not considered lavish or under title 11 of the U.S. Code. See Pub. extravagant. The meals may be provided to a 908, Bankruptcy Tax Guide. current or potential business customer, client, Endowment Contract • The debt is canceled when you’re insol- consultant, or similar business contact. Food Proceeds vent. However, you can’t exclude any and beverages that are provided during enter-



• amount of canceled debt that’s more than tainment events will not be considered enter- An endowment contract is a policy under which the amount by which you’re insolvent. See tainment if purchased separately from the you’re paid a specified amount of money on a Pub. 908. event. certain date unless you die before that date, in

The debt is qualified farm debt and is can- which case the money is paid to your designa- For more information about the limit for meal

celed by a qualified person. See chapter 3 ted beneficiary. Endowment proceeds paid in a expenses, see Pub. 463, Travel, Gift, and Car



• the proceeds are more than the cost of the pol- The debt is qualified real property business icy. To determine your cost, subtract any of Pub. 225, Farmer's Tax Guide. lump sum to you at maturity are taxable only if Expenses.

debt. See chapter 5 of Pub. 334.

amount that you previously received under the

• The cancellation is intended as a gift. contract and excluded from your income from

• the total premiums (or other consideration) paid The debt is qualified principal residence in- for the contract. Include in your income the part debtedness (QPRI).

Publication 17 (2025) Chapter 8 Other Income 69 of the lump-sum payment that’s more than your received from a governmental section 401(a) his share of the S corporation's income, losses, cost. plan attributable to the officer’s service. See credits, and deductions.

section 101(h).

Accelerated Death Keep Schedule K-1 (Form 1120-S) for and totally disabled or killed in the line of duty A public safety officer who’s permanently your records. Don’t attach it to your

Benefits RECORDS Form 1040 or 1040-SR unless you’re and a surviving spouse or child can exclude specifically required to do so.

from income death or disability benefits re-

Certain amounts paid as accelerated death ceived from the federal Bureau of Justice Assis-benefits under a life insurance contract or viati- For more information on S corporations and tance or death benefits paid by a state program.

cal settlement before the insured's death are ex- their shareholders, see the Instructions for Form See section 104(a)(6).

cluded from income if the insured is terminally 1120-S. For this purpose, the term “public safety offi-



ment of any part of the death benefit under a life lance crew members. For more information, see Pub. 559, Survivors, Executors, and Administra- A recovery is a return of an amount you deduc-insurance contract to a viatical settlement pro-tors. ted or took a credit for in an earlier year. The vider. A viatical settlement provider is a person most common recoveries are refunds, reim-Viatical settlement. This is the sale or assign- ers, chaplains, and rescue squad and ambu- Recoveries or chronically ill. cer” includes law enforcement officers, firefight-



tracts on the lives of insured individuals who are ized on Schedule A (Form 1040). You may also have recoveries of nonitemized deductions terminally or chronically ill and who meets the A partnership generally isn’t a taxable entity. (such as payments on previously deducted bad requirements of section 101(g)(2)(B) of the In- ing or taking assignment of life insurance con- bursements, and rebates of deductions item- who regularly engages in the business of buy- Partnership Income

ternal Revenue Code. debts) and recoveries of items for which you The income, gains, losses, deductions, and

credits of a partnership are passed through to

Exclusion for terminal illness. Accelerated the partners based on each partner's distribu- previously claimed a tax credit. death benefits are fully excludable if the insured tive share of these items. Tax benefit rule. You must include a recovery



is a terminally ill individual. This is a person who in your income in the year you receive it up to Schedule K-1 (Form 1065). Although a part- the amount by which the deduction or credit you has been certified by a physician as having an nership generally pays no tax, it must file an in- took for the recovered amount reduced your tax illness or physical condition that can reasonably formation return on Form 1065, U.S. Return of in the earlier year. For this purpose, any in- be expected to result in death within 24 months Partnership Income, and send Schedule K-1 crease to an amount carried over to the current from the date of the certification. (Form 1065) to each partner. In addition, the year that resulted from the deduction or credit is partnership will send each partner a copy of the Exclusion for chronic illness. If the insured is considered to have reduced your tax in the ear- Partner's Instructions for Schedule K-1 (Form a chronically ill individual who’s not terminally ill, lier year. 1065) to help each partner report his or her accelerated death benefits paid on the basis of share of the partnership's income, deductions, Federal income tax refund. Refunds of fed- costs incurred for qualified long-term care serv- credits, and tax preference items. eral income taxes aren’t included in your in- ices are fully excludable. Accelerated death come because they’re never allowed as a de- benefits paid on a per diem or other periodic ba- Keep Schedule K-1 (Form 1065) for duction from income. sis are excludable up to a limit. For 2025, this your records. Don’t attach it to your

limit is $420. It applies to the total of the accel- RECORDS Form 1040 or 1040-SR, unless you’re State tax refund. If you received a state or lo-erated death benefits and any periodic pay- specifically required to do so. cal income tax refund (or credit or offset) in ments received from long-term care insurance 2025, you must generally include it in income if

contracts. For information on the limit and the For more information on partnerships, see you deducted the tax in an earlier year. The



surance Contracts under Sickness and Injury your spouse each materially participate as the day). The IRS will also receive a copy of the Form 1099-G. If you file Form 1040 or 1040-SR, only members of a jointly owned and operated Benefits in Pub. 525. use the State and Local Income Tax Refund business, and you file a joint return for the tax Worksheet under Instructions for Schedule 1 in Exception. The exclusion doesn’t apply to any long-term care services,” and “long-term care you by January 31 (if it's not a weekend or holi- Qualified joint venture (QJV). If you and insurance contracts,” see Long-Term Care In- definitions of “chronically ill individual,” “qualified Pub. 541, Partnerships. payer should generally send Form 1099-G to

amount paid to a person (other than the in- the Instructions for Form 1040 to figure the year, you can make a joint election to be treated

sured) who has an insurable interest in the life amount (if any) to include in your income. See as a QJV instead of a partnership. To make this

of the insured because the insured: Pub. 525 for when you must use another work- election, you must divide all items of income,



• Is a director, officer, or employee of the If you could choose to deduct for a tax year accordance with your respective interests in the person; or either: the business between you and your spouse in sheet. gain, loss, deduction, and credit attributable to

• Has a financial interest in the person's the election and which schedule(s) to file, see • venture. For further information on how to make State and local income taxes, or

business. the instructions for your individual tax return. • State and local general sales taxes, then



other periodic basis, you must file Form 8853, clude in income is limited to the excess of the tax you chose to deduct for that year over the Archer MSAs and Long-Term Care Insurance In most cases, an S corporation doesn’t pay tax tax you didn’t choose to deduct for that year. Contracts, with your return. You don’t have to ated death benefits made on a per diem or the maximum refund that you may have to in- Form 8853. To claim an exclusion for acceler- S Corporation Income

file Form 8853 to exclude accelerated death For examples, see Pub. 525. on its income. Instead, the income, losses, de-

ductions, and credits of the corporation are

benefits paid on the basis of actual expenses passed through to the shareholders based on Mortgage interest refund. If you received a incurred. each shareholder's pro rata share. refund or credit in 2025 of mortgage interest



Public Safety Officer Killed Schedule K-1 (Form 1120-S). An S corpora- paid in an earlier year, the amount should be shown in box 4 of Form 1098, Mortgage Interest tion must file a return on Form 1120-S, U.S. In- Statement. Don’t subtract the refund amount or Injured in the Line of come Tax Return for an S Corporation, and from the interest you paid in 2025. You may send Schedule K-1 (Form 1120-S) to each Duty have to include it in your income under the rules shareholder. In addition, the S corporation will explained in the following discussions. send each shareholder a copy of the Share-

A spouse, former spouse, and child of a public holder's Instructions for Schedule K-1 (Form Interest on recovery. Interest on any of the safety officer killed in the line of duty can ex- 1120-S) to help each shareholder report her or amounts you recover must be reported as inter-clude from gross income survivor benefits est income in the year received. For example,

70 Chapter 8 Other Income Publication 17 (2025) report any interest you received on state or local balance of your recoveries, $525, on Schedule Reporting business income and expenses. income tax refunds on Form 1040, 1040-SR, or 1 (Form 1040), line 8z. If you’re in the business of renting personal

1040-NR, line 2b. property, report your income and expenses on Standard deduction for earlier years. To Schedule C (Form 1040). The form instructions

Recovery and expense in same year. If the determine if amounts recovered in the current have information on how to complete them. refund or other recovery and the expense occur year must be included in your income, you must in the same year, the recovery reduces the de- know the standard deduction for your filing sta- Reporting nonbusiness income. If you duction or credit and isn’t reported as income. tus for the year the deduction was claimed. aren’t in the business of renting personal prop-

Recovery for 2 or more years. If you receive prior years to locate the standard deduction for Look in the instructions for your tax return from erty, report your rental income on Schedule 1



you paid in 2 or more separate years, you must Reporting nonbusiness expenses. If you Form 1040-NR, you couldn’t claim the standard allocate, on a pro rata basis, the recovered rent personal property for profit, include your deduction except for certain nonresident aliens amount between the years in which you paid it. a refund or other recovery that’s for amounts the filing status for that prior year. If you filed (Form 1040), line 8l.

This allocation is necessary to determine the from India; see Pub. 519. rental expenses in the total amount you enter on Schedule 1 (Form 1040), line 24b, and see the



amount of recovery from any earlier years and instructions there. Example. You filed a joint return on Form to determine the amount, if any, of your allowa-If you don’t rent personal property for profit, 1040 for 2024 with taxable income of $45,000. ble deduction for this item for the current year. your deductions are limited and you can’t report Your itemized deductions were $29,450. The For information on how to figure the allocation, a loss to offset other income. See Activities not standard deduction that you could have claimed see Recoveries in Pub. 525. engaged in for profit under Other Income, later. was $29,200. In 2025, you recovered $2,100 of

Itemized Deduction your 2024 itemized deductions. None of the re- Repayments coveries were more than the actual deductions

Recoveries for 2024. Include $250 of the recoveries in your

2025 income. This is the smaller of your recov- If you had to repay an amount that you included

If you recover any amount that you deducted in eries ($2,100) or the amount by which your in your income in an earlier year, you may be

an earlier year on Schedule A (Form 1040), you itemized deductions were more than the stand- able to deduct the amount repaid from your in-

must generally include the full amount of the re- ard deduction ($29,450 − $29,200 = $250). come for the year in which you repaid it. Or, if



covery in your income in the year you receive it. the amount you repaid is more than $3,000, you Recovery limited to deduction. You don’t in- may be able to take a credit against your tax for clude in your income any amount of your recov- Where to report. Enter your state or local in- the year in which you repaid it. Generally, you ery that’s more than the amount you deducted come tax refund on Schedule 1 (Form 1040), can claim a deduction or credit only if the repay- in the earlier year. The amount you include in line 1, and the total of all other recoveries as ment qualifies as an expense or loss incurred in your income is limited to the smaller of: other income on Schedule 1 (Form 1040), your trade or business or in a for-profit transac- line 8z. • The amount deducted on Schedule A tion. (Form 1040), or Standard deduction limit. You are generally Type of deduction. The type of deduction • The amount recovered. allowed to claim the standard deduction if you you’re allowed in the year of repayment de- don’t itemize your deductions. Only your item- pends on the type of income you included in the Example. During 2024, you paid $1,700 for ized deductions that are more than your stand- earlier year. You generally deduct the repay- medical expenses. Of this amount, you deduc- ard deduction are subject to the recovery rule ment on the same form or schedule on which ted $200 on your 2024 Schedule A (Form (unless you’re required to itemize your deduc- you previously reported it as income. For exam- 1040). In 2025, you received a $500 reimburse- tions). If your total deductions on the earlier ple, if you reported it as self-employment in- ment from your medical insurance for your 2024 year return weren’t more than your income for come, deduct it as a business expense on expenses. The only amount of the $500 reim- that year, include in your income this year the Schedule C (Form 1040) or Schedule F (Form bursement that must be included in your income lesser of: 1040). If you reported it as a capital gain, de- for 2025 is $200—the amount actually deduc- duct it as a capital loss as explained in the In- • Your recoveries, or ted. structions for Schedule D (Form 1040). If you • The amount by which your itemized deduc- reported it as wages, unemployment compen- Other recoveries. See Recoveries in Pub. tions exceeded the standard deduction. sation, or other nonbusiness income, you may 525 if: be able to deduct it as an other itemized deduc- Example. For 2024, you filed a joint return. • You have recoveries of items other than tion if the amount repaid is over $3,000. Your taxable income was $60,000 and you itemized deductions, or Beginning in 2018, you can no longer weren’t entitled to any tax credits. Your standard • You received a recovery for an item for deduction was $29,200, and you had itemized ! claim any miscellaneous itemized de- which you claimed a tax credit (other than ductions, so if the amount repaid was CAUTION deductions of $30,700. In 2025, you received investment credit or foreign tax credit) in a $3,000 or less, you are not able to deduct it the following recoveries for amounts deducted prior year. from your income in the year you repaid it. on your 2024 return.

Repaid social security benefits. If you repaid



State and local income tax refund social security benefits or equivalent railroad re- . . . . . . . 400 Property Refund of mortgage interest . . . . . . . . . . 325 tirement benefits, see Repayment of benefits in chapter 7. If you rent out personal property, such as equip- Medical expenses . . . . . . . . . . . . . . . $200 Rents From Personal

Total recoveries . . . . . . . . . . . . . . . . $925 ment or vehicles, how you report your income Repayment over $3,000. If the amount you



tween the state and local income tax you de- ness, and cluded the income under a claim of right. This ducted and your local general sales tax was • Whether or not the rental activity is con-means that at the time you included the income, more than $400. ducted for profit. it appeared that you had an unrestricted right to Your total recoveries are less than the it. However, you can choose to take a credit for ductions taken for 2024. The difference be- the repayment as an other itemized deduction • Whether or not the rental activity is a busi- on Schedule A (Form 1040), line 16, if you in- None of the recoveries were more than the de- and expenses is in most cases determined by: repaid was more than $3,000, you can deduct



$29,200 = $1,500), so you must include your to- both methods and compare the results. Use the activity with continuity and regularity, your rental method (deduction or credit) that results in less tal recoveries in your income for 2025. Report activity is a business. tax. the state and local income tax refund of $400 ceeded the standard deduction ($30,700 − the year of repayment. Figure your tax under come or profit and you’re involved in the rental amount by which your itemized deductions ex- In most cases, if your primary purpose is in-

on Schedule 1 (Form 1040), line 1, and the

Publication 17 (2025) Chapter 8 Other Income 71

! you repaid was more or less than are in business as a self-employed writer, inven-When determining whether the amount hold an operating oil, gas, or mineral interest or Unemployment

CAUTION $3,000, consider the total amount be- tor, artist, etc., report your income and expen- Benefits ing repaid on the return. Each instance of re- ses on Schedule C (Form 1040).



payment isn’t considered separately. Copyrights and patents. Royalties from copy- The tax treatment of unemployment benefits rights on literary, musical, or artistic works, and you receive depends on the type of program Method 1. Figure your tax for 2025 claiming similar property, or from patents on inventions, paying the benefits. a deduction for the repaid amount. If you deduct are amounts paid to you for the right to use your it as an other itemized deduction, enter it on Unemployment compensation. You must in-work over a specified period of time. Royalties Schedule A (Form 1040), line 16. clude in income all unemployment compensa-are generally based on the number of units tion you receive. You should receive a Form Method 2. Figure your tax for 2025 claiming sold, such as the number of books, tickets to a 1099-G showing in box 1 the total unemploy-a credit for the repaid amount. Follow these performance, or machines sold. ment compensation paid to you. In most cases, steps. Name, image, likeness (NIL). NIL is a term you enter unemployment compensation on 1. Figure your tax for 2025 without deducting that describes the means through which stu-Schedule 1 (Form 1040), line 7. the repaid amount. dent-athletes are allowed to receive financial If you received unemployment com-compensation. NIL refers to the use of a stu-2. Refigure your tax from the earlier year pensation but did not receive Form dent-athlete's name, image, or likeness for com-! without including in income the amount CAUTION 1099-G through the mail, you may mercial purposes through marketing and pro-you repaid in 2025. need to access your information through your motional endeavors. This can include such state’s website to get your electronic Form 3. Subtract the tax in (2) from the tax shown things as autograph signings, product endorse-1099-G. on your return for the earlier year. This is ments, licensing and merchandising agree-ments, participating in advertising campaigns, the credit. social media posts, teaching camps or lessons, Types of unemployment compensation. 4. Subtract the answer in (3) from the tax for and more. Unemployment compensation generally in-2025 figured without the deduction (step cludes any amount received under an unem-1). Oil, gas, and minerals. Royalty income from ployment compensation law of the United oil, gas, and mineral properties is the amount If method 1 results in less tax, deduct the States or of a state. It includes the following you receive when natural resources are extrac-amount repaid. If method 2 results in less tax, benefits. ted from your property. The royalties are based claim the credit figured in (3) above on Sched-on units, such as barrels, tons, etc., and are • Benefits paid by a state or the District of ule 3 (Form 1040), line 13b, by adding the paid to you by a person or company that leases Columbia from the Federal Unemployment amount of the credit to any other credits on this the property from you. Trust Fund. line, and see the instructions there. • State unemployment insurance benefits. An example of this computation can be Depletion. If you’re the owner of an eco-found in Pub. 525. nomic interest in mineral deposits or oil and gas • Railroad unemployment compensation



and Medicare taxes. If you had to repay an the depletion allowance. • Disability payments from a government amount that you included in your wages or com-Repaid wages subject to social security wells, you can recover your investment through benefits.

Coal and iron ore. Under certain circum- program paid as a substitute for unemploy-

pensation in an earlier year on which social se- ment compensation. (Amounts received as stances, you can treat amounts you receive

curity, Medicare, or tier 1 RRTA tax was paid, from the disposal of coal and iron ore as pay- workers' compensation for injuries or ill-ask your employer to refund the excess amount ments from the sale of a capital asset, rather ness aren’t unemployment compensation.



taxes, ask for a statement indicating the amount gain or loss from the sale of coal and iron ore, • Trade readjustment allowances under the of the overcollection to support your claim. File see chapter 2 of Pub. 544. to you. If the employer refuses to refund the than as royalty income. For information about See chapter 5 for more information.) a claim for refund using Form 843, Claim for Re- Trade Act of 1974. fund and Request for Abatement. Sale of property interest. If you sell your • Unemployment assistance under the Dis-Repaid wages subject to Additional Medi- complete interest in oil, gas, or mineral rights, aster Relief and Emergency Assistance

care Tax. Employers can’t make an adjust- the amount you receive is considered payment Act.



ment or file a claim for refund for Additional for the sale of property used in a trade or busi- • Unemployment assistance under the Air- ness under section 1231, not royalty income. line Deregulation Act of 1978 Program. Medicare Tax withholding when there is a re- Under certain circumstances, the sale is subject payment of wages received by an employee in a to capital gain or loss treatment as explained in prior year because the employee determines li- the Instructions for Schedule D (Form 1040). ability for Additional Medicare Tax on the em- For more information on selling section 1231 Governmental program. If you contribute ployee's income tax return for the prior year. If to a governmental unemployment compensa- property, see chapter 3 of Pub. 544. you had to repay an amount that you included in tion program and your contributions aren’t de- If you retain a royalty, an overriding royalty, your wages or compensation in an earlier year, ductible, amounts you receive under the pro- or a net profit interest in a mineral property for and on which Additional Medicare Tax was the life of the property, you have made a lease gram aren’t included as unemployment paid, you may be able to recover the Additional compensation until you recover your contribu- or a sublease, and any cash you receive for the Medicare Tax paid on the amount. To recover tions. If you deducted all of your contributions to assignment of other interests in the property is Additional Medicare Tax on the repaid wages or the program, the entire amount you receive un- ordinary income subject to a depletion allow- compensation, you must file Form 1040-X for ance. der the program is included in your income. the prior year in which the wages or compensa-

tion was originally received. See the Instruc- Part of future production sold. If you own Repayment of unemployment compensa-tions for Form 1040-X. mineral property but sell part of the future pro- tion. If you repaid in 2025 unemployment com-

Royalties duction, in most cases, you treat the money you pensation you received in 2025, subtract the

receive from the buyer at the time of the sale as amount you repaid from the total amount you re-

a loan from the buyer. Don’t include it in your in- ceived and enter the difference on Schedule 1

Royalties from copyrights, patents, and oil, gas, come or take depletion based on it. (Form 1040), line 7. On the dotted line next to

and mineral properties are taxable as ordinary When production begins, you include all the your entry, enter “Repaid” and the amount you

income. proceeds in your income, deduct all the produc- repaid. If you repaid unemployment compensa-

tion expenses, and deduct depletion from that tion in 2025 that you included in income in an

In most cases, you report royalties in Part I amount to arrive at your taxable income from earlier year, you can deduct the amount repaid

of Schedule E (Form 1040). However, if you the property.

72 Chapter 8 Other Income Publication 17 (2025) on Schedule A (Form 1040), line 16, if you item- made by the state to its employees who aren’t 2. To reimburse or pay reasonable and nec-ize deductions and the amount is more than covered by the state's unemployment compen- essary expenses incurred for the repair or

$3,000. See Repayments, earlier. sation law. Although the payments are fully tax- rehabilitation of your home or repair or re-

able, don’t report them as unemployment com- placement of its contents to the extent it’s



tax. If you don’t pay enough tax, either through CAUTION ! If you don’t choose to have tax withheld 4. By a federal, state, or local government; from your unemployment compensa- agency; or instrumentality in connection tion, you may be liable for estimated Don’t include in your income governmental ben- with a qualified disaster in order to pro- efit payments from a public welfare fund based mote the general welfare. withholding or estimated tax, or a combination upon need, such as payments to blind individu- of both, you may have to pay a penalty. For You can exclude this amount only to the extent als under a state public assistance law. Pay- more information on estimated tax, see chap- any expense it pays for isn’t paid for by insur- ments from a state fund for the victims of crime ter 4 . ance or otherwise. The exclusion doesn’t apply shouldn’t be included in the victims' incomes if if you were a participant or conspirator in a ter- they’re in the nature of welfare payments. Don’t Supplemental unemployment benefits. rorist action or a representative of one. deduct medical expenses that are reimbursed Benefits received from an employer-financed by such a fund. You must include in your income A qualified disaster is: fund (to which the employees didn’t contribute) any welfare payments that are compensation for • A disaster that results from a terrorist or aren’t unemployment compensation. They are services or that are obtained fraudulently. complete Form W-4V, Voluntary Withholding sale of transportation as a common carrier Welfare and Other because of the death or personal physical Request, and give it to the paying office. Tax will injuries incurred as a result of a qualified be withheld at 10% of your payment. Public Assistance disaster; or Benefits federal income tax withheld from your unem- 1 (Form 1040), line 8z. 3. By a person engaged in the furnishing or ployment compensation. To make this choice, Tax withholding. You can choose to have pensation. Report these payments on Schedule due to a qualified disaster;

taxable as wages. For more information, see military action; Supplemental Unemployment Compensation Reemployment Trade Adjustment Assis- • A federally declared disaster; or



Benefits in section 5 of Pub. 15-A, Employer's tance (RTAA) payments. RTAA payments re- • A disaster that results from an accident in-Supplemental Tax Guide. Report these pay-ceived from a state must be included in your in-volving a common carrier, or from any ments on line 1a of Form 1040 or 1040-SR. come. The state must send you Form 1099-G to other event, that is determined to be cata-advise you of the amount you should include in strophic by the Secretary of the Treasury or Repayment of benefits. You may have to income. The amount should be reported on his or her delegate. repay some of your supplemental unemploy-Schedule 1 (Form 1040), line 8z. For amounts paid under item (4) above, a ment benefits to qualify for trade readjustment Persons with disabilities. If you have a disa-allowances under the Trade Act of 1974. If you disaster is qualified if it’s determined by an ap-bility, you must include in income compensation repay supplemental unemployment benefits in plicable federal, state, or local authority to war-you receive for services you perform unless the the same year you receive them, reduce the to-rant assistance from the federal, state, or local compensation is otherwise excluded. However, tal benefits by the amount you repay. If you re-government, agency, or instrumentality. you don’t include in income the value of goods, pay the benefits in a later year, you must include services, and cash that you receive, not in re-Disaster mitigation payments. You can ex-the full amount of the benefits received in your turn for your services, but for your training and clude from income any amount you receive income for the year you received them. rehabilitation because you have a disability. Ex-that’s a qualified disaster mitigation payment. Deduct the repayment in the later year as an cludable amounts include payments for trans-Qualified disaster mitigation payments are most adjustment to gross income on Form 1040 or portation and attendant care, such as inter-commonly paid to you in the period immediately 1040-SR. Include the repayment on Schedule 1 preter services for the deaf, reader services for following damage to property as a result of a (Form 1040), line 24e, and see the instructions the blind, and services to help individuals with natural disaster. However, disaster mitigation there. If the amount you repay in a later year is an intellectual disability do their work. payments are used to mitigate (reduce the se-more than $3,000, you may be able to take a verity of) potential damage from future natural credit against your tax for the later year instead Disaster relief grants. Don’t include post-dis-disasters. They’re paid to you through state and of deducting the amount repaid. For more infor-aster grants received under the Robert T. Staf-local governments based on the provisions of mation on this, see Repayments , earlier. ford Disaster Relief and Emergency Assistance the Robert T. Stafford Disaster Relief and Emer-Act in your income if the grant payments are Private unemployment fund. Unemployment gency Assistance Act or the National Flood In-made to help you meet necessary expenses or benefit payments from a private (nonunion) fund surance Act. serious needs for medical, dental, housing, per-to which you voluntarily contribute are taxable You can’t increase the basis or adjusted ba-sonal property, transportation, childcare, or fu-only if the amounts you receive are more than sis of your property for improvements made with neral expenses. Don’t deduct casualty losses or your total payments into the fund. Report the nontaxable disaster mitigation payments. medical expenses that are specifically reim-taxable amount on Schedule 1 (Form 1040), bursed by these disaster relief grants. If you Mortgage assistance payments under sec-line 8z. have deducted a casualty loss for the loss of tion 235 of the National Housing Act. Pay-Payments by a union. Benefits paid to you as your personal residence and you later receive a ments made under section 235 of the National an unemployed member of a union from regular disaster relief grant for the loss of the same resi- Housing Act for mortgage assistance aren’t in-union dues are included in your income on dence, you may have to include part or all of the cluded in the homeowner's income. Interest

Schedule 1 (Form 1040), line 8z. However, if grant in your taxable income. See Recoveries, paid for the homeowner under the mortgage as-you contribute to a special union fund and your earlier. Unemployment assistance payments sistance program can’t be deducted.



are includible in your income only to the extent pensation. See Unemployment compensation tle XVIII of the Social Security Act aren’t includi- under Unemployment Benefits, earlier. ble in the gross income of the individuals for employment benefits you receive from the fund Medicare. Medicare benefits received under ti- payments to the fund aren’t deductible, the un- under the Act are taxable unemployment com-

they’re more than your contributions.

Disaster relief payments. You can exclude whom they’re paid. This includes basic (Part A

Guaranteed annual wage. Payments you re- from income any amount you receive that’s a (Hospital Insurance Benefits for the Aged)) and ceive from your employer during periods of un- qualified disaster relief payment. A qualified dis- supplementary (Part B (Supplementary Medical employment, under a union agreement that aster relief payment is an amount paid to you: Insurance Benefits for the Aged)).



guarantees you full pay during the year, are tax- 1. To reimburse or pay reasonable and nec- Social security benefits (including able as wages. Include them on line 1a of Form essary personal, family, living, or funeral lump-sum payments attributable to prior 1040 or 1040-SR. expenses that result from a qualified dis-years), Supplemental Security Income (SSI) State employees. Payments similar to a aster; benefits, and lump-sum death benefits. The state's unemployment compensation may be Social Security Administration (SSA) provides

Publication 17 (2025) Chapter 8 Other Income 73 benefits such as old-age benefits, benefits to Don’t include alimony payments you re- 5. Damages for:

disabled workers, and benefits to spouses and ceive under a divorce or separation ! a. Patent or copyright infringement, dependents. These benefits may be subject to CAUTION agreement (1) executed after 2018 or federal income tax depending on your filing sta- (2) executed before 2019 but later modified if b. Breach of contract, or

tus and other income. See chapter 7 in this pub- the modification expressly states the repeal of c. Interference with business operations. lication and Pub. 915, Social Security and the deduction for alimony payments applies to Equivalent Railroad Retirement Benefits, for the modification. 6. Back pay and damages for emotional dis-more information. An individual originally denied tress received to satisfy a claim under title



lump-sum payment for the period when benefits income. 7. Attorney fees and costs (including contin-were denied (which may be prior years). See benefits, but later approved, may receive a Bribes. If you receive a bribe, include it in your VII of the Civil Rights Act of 1964. Pub. 915 for information on how to make a Campaign contributions. These contributions gent fees) where the underlying recovery

lump-sum election, which may reduce your tax aren’t income to a candidate unless they’re di- is included in gross income.



liability. There are also other types of benefits verted to her or his personal use. To be nontax- 8. Attorney fees and costs relating to whistle-able, the contributions must be spent for cam-paid by the SSA. However, SSI benefits and blower awards where the underlying re-paign purposes or kept in a fund for use in lump-sum death benefits (one-time payment to covery is included in gross income. future campaigns. However, interest earned on spouse and children of deceased) aren’t sub-bank deposits, dividends received on contrib-Don’t include in your income compensatory ject to federal income tax. For more information uted securities, and net gains realized on sales damages for personal physical injury or physical on these benefits, go to SSA.gov . of contributed securities are taxable and must sickness (whether received in a lump sum or in-Nutrition Program for the Elderly. Food ben-be reported on Form 1120-POL, U.S. Income stallments). efits you receive under the Nutrition Program for Tax Return for Certain Political Organizations. the Elderly aren’t taxable. If you prepare and Excess campaign funds transferred to an office Emotional distress. Emotional distress it-serve free meals for the program, include in account must be included in the officeholder's self isn’t a physical injury or physical sickness, your income as wages the cash pay you re- income on Schedule 1 (Form 1040), line 8z, in but damages you receive for emotional distress ceive, even if you’re also eligible for food bene- the year transferred. due to a physical injury or sickness are treated



fits. as received for the physical injury or sickness. Carpools. Don’t include in your income Don’t include them in your income. Payments to reduce cost of winter energy. amounts you receive from the passengers for If the emotional distress is due to a personal Payments made by a state to qualified people to driving a car in a carpool to and from work. injury that isn’t due to a physical injury or sick- reduce their cost of winter energy use aren’t These amounts are considered reimbursement ness (for example, employment discrimination taxable. for your expenses. However, this rule doesn’t or injury to reputation), you must include the apply if you have developed carpool arrange- damages in your income, except for any dam- Other Income ments into a profit-making business of trans- ages that aren’t more than amounts paid for porting workers for hire. medical care due to that emotional distress.

The following brief discussions are arranged in Cash rebates. A cash rebate you receive from Emotional distress includes physical symptoms alphabetical order. Other income items briefly a dealer or manufacturer of an item you buy that result from emotional distress, such as discussed below can be found in other publica- isn’t income, but you must reduce your basis by headaches, insomnia, and stomach disorders.

tions that provide more topical information. the amount of the rebate. Credit card insurance. In most cases, if you



Activities not engaged in for profit. You receive benefits under a credit card disability or Example. You buy a new car for $24,000 must include on your return income from an ac- unemployment insurance plan, the benefits are cash and receive a $2,000 rebate check from tivity from which you don’t expect to make a taxable to you. These plans make the minimum the manufacturer. The $2,000 isn’t income to profit. An example of this type of activity is a monthly payment on your credit card account if you. Your basis in the car is $22,000. This is the hobby or a farm you operate mostly for recrea- you can’t make the payment due to injury, ill- basis on which you figure gain or loss if you sell tion and pleasure. Enter this income on Sched- ness, disability, or unemployment. Report on the car and depreciation if you use it for busi- ule 1 (Form 1040), line 8j. Deductions for ex- Schedule 1 (Form 1040), line 8z, the amount of ness. penses related to the activity are limited. They benefits you received during the year that’s

can’t total more than the income you report and Casualty insurance and other reimburse- more than the amount of the premiums you paid can be taken only if you itemize deductions on ments. You generally shouldn’t report these re- during the year.

Schedule A (Form 1040). imbursements on your return unless you’re fig-uring gain or loss from the casualty or theft. See Down payment assistance. If you purchase a

Alaska Permanent Fund dividend. If you re- home and receive assistance from a nonprofit Pub. 547 for more information. ceived a payment from Alaska's mineral income corporation to make the down payment, that as-

fund (Alaska Permanent Fund dividend), report Child support payments. You shouldn’t re- sistance isn’t included in your income. If the cor-it as income on Schedule 1 (Form 1040), port these payments on your return. See Pub. poration qualifies as a tax-exempt charitable or-line 8g. The 2024 Alaska Permanent Fund divi- 504 for more information. ganization, the assistance is treated as a gift



relief payment portion of the 2024 Alaska Per- price and isn’t included in your basis. you must consider the item that the settlement manent Fund dividend payment; the entire replaces. The character of the income as ordi-Employment agency fees. If you get a job $1,702 Alaska Permanent Fund dividend pay-nary income or capital gain depends on the na-through an employment agency, and the fee is ment for 2024 is taxable for federal income tax ture of the underlying claim. Include the follow-paid by your employer, the fee isn’t includible in purposes. The state of Alaska sends each re-ing as ordinary income. your income if you aren’t liable for it. However, if cipient a document that shows the amount of not reduce the amount on line 8g by the energy settlement amounts you receive by compromise corporation doesn’t qualify, the assistance is treated as a rebate or reduction of the purchase or judgment must be included in your income, ment as part of the total dividend payment. Do Court awards and damages. To determine if dend payment included an energy relief pay- and is included in your basis of the house. If the



the payment with the check. The amount is also you pay it and your employer reimburses you for 1. Interest on any award. it, it’s includible in your income. reported to the IRS. 2. Compensation for lost wages or lost profits Energy conservation subsidies. You can ex- Alimony. Include in your income on Schedule in most cases. clude from gross income any subsidy provided, 1 (Form 1040), line 2a, any taxable alimony pay- 3. Punitive damages, in most cases. It either directly or indirectly, by public utilities for ments you receive. Amounts you receive for doesn’t matter if they relate to a physical the purchase or installation of an energy con- child support aren’t income to you. Alimony and injury or physical sickness. servation measure for a dwelling unit. child support payments are discussed in Pub.

504. 4. Amounts received in settlement of pension Energy conservation measure. This in-rights (if you didn’t contribute to the plan). cludes installations or modifications that are

74 Chapter 8 Other Income Publication 17 (2025) primarily designed to reduce consumption of tion you were in before the loss, the payment a. An agency of a state or one of its polit-electricity or natural gas, or improve the man- isn’t includible in your income. ical subdivisions, or agement of energy demand.

Fees for services. Include all fees for your b. A qualified foster care placement



apartment, condominium, mobile home, boat, fees are amounts you receive for services you Difficulty-of-care payments. These are or similar property. If a building or structure con-Dwelling unit. This includes a house, services in your income. Examples of these agency. perform as:



must be properly allocated. that’s required for physically, mentally, or emo- • An executor, administrator, or personal Estate and trust income. An estate or trust, tionally handicapped qualified foster individuals. representative of an estate; unlike a partnership, may have to pay federal in- tains both dwelling and other units, any subsidy • A corporate director; compensation for providing the additional care payments that are designated by the payer as

come tax. If you’re a beneficiary of an estate or A manager of a trade or business you op-• A state must determine that this compensation

trust, you may be taxed on your share of its in- erated before declaring chapter 11 bank- is needed, and the care for which the payments come distributed or required to be distributed to ruptcy; are made must be provided in the foster care provider's home in which the qualified foster in-



tates and trusts file their returns on Form 1041, Certain Medicaid waiver payments are trea- • An election precinct official. U.S. Income Tax Return for Estates and Trusts, ted as difficulty-of-care payments when re- ceived by an individual care provider for caring you. However, there is never a double tax. Es- • A notary public; or dividual was placed.

and your share of the income is reported to you Nonemployee compensation. If you aren’t on Schedule K-1 (Form 1041). for an eligible individual living in the provider's an employee and the fees for your services from

Current income required to be distrib- a single payer in the course of the payer's trade home. See Notice 2014-7, available at

uted. If you’re the beneficiary of an estate or or business total $600 or more for the year, the IRS.gov/irb/2014-04_IRB#NOT-2014-7; and re-

trust that must distribute all of its current in- payer should send you a Form 1099-NEC. You lated questions and answers, available at

come, you must report your share of the distrib- may need to report your fees as self-employ- IRS.gov/Individuals/Certain-Medicaid-Waiver-

utable net income, whether or not you actually ment income. See Self-Employed Persons in Payments-May-Be-Excludable-From-Income,

received it. chapter 1 for a discussion of when you’re con- for more information.



Current income not required to be dis- culty-of-care payments to the extent they’re re- Corporate director. Corporate director fees sidered self-employed. You must include in your income diffi-



tributed. If you’re the beneficiary of an estate ceived for more than: are self-employment income. Report these pay-or trust and the fiduciary has the choice of • 10 qualified foster individuals under age ments on Schedule C (Form 1040). whether to distribute all or part of the current in-19, or



come, you must report: Personal representatives. All personal • 5 qualified foster individuals age 19 or • representatives must include in their gross in-All income that’s required to be distributed older. come fees paid to them from an estate. If you

to you, whether or not it’s actually distrib-

uted, plus aren’t in the trade or business of being an exec- Maintaining space in home. If you’re paid

• All other amounts actually paid or credited friend's or relative's estate), report these fees on utor (for instance, you’re the executor of a to maintain space in your home for emergency

foster care, you must include the payment in

to you, Schedule 1 (Form 1040), line 8z. If you’re in the your income.



up to the amount of your share of distributable trade or business of being an executor, report Reporting taxable payments. If you re-net income. these fees as self-employment income on ceive payments that you must include in your in-Schedule C (Form 1040). The fee isn’t includi-come and you’re in business as a foster care How to report. Treat each item of income ble in income if it’s waived. provider, report the payments on Schedule C the same way that the estate or trust would treat Manager of trade or business for bank-it. For example, if a trust's dividend income is (Form 1040). See Pub. 587, Business Use of ruptcy estate. Include in your income all pay-distributed to you, you report the distribution as Your Home, to help you determine the amount you can deduct for the use of your home. dividend income on your return. The same rule ments received from your bankruptcy estate for managing or operating a trade or business that applies to distributions of tax-exempt interest Found property. If you find and keep property and capital gains. you operated before you filed for bankruptcy. that doesn’t belong to you that has been lost or The fiduciary of the estate or trust must tell Report this income on Schedule 1 (Form 1040), abandoned (treasure trove), it’s taxable to you you the type of items making up your share of line 8z. at its fair market value in the first year it’s your the estate or trust income and any credits you’re undisputed possession. Notary public. Report payments for these allowed on your individual income tax return. services on Schedule C (Form 1040). These Free tour. If you received a free tour from a Losses. Losses of estates and trusts gener-payments aren’t subject to self-employment tax. travel agency for organizing a group of tourists, ally aren’t deductible by the beneficiaries. See the separate Instructions for Schedule SE you must include its value in your income. Re-(Form 1040) for details. port the fair market value of the tour on Sched-Grantor trust. Income earned by a grantor ule 1 (Form 1040), line 8z, if you aren’t in the trust is taxable to the grantor, not the benefi-Election precinct official. You should re-trade or business of organizing tours. You can’t ciary, if the grantor keeps certain control over ceive a Form W-2 showing payments for serv-deduct your expenses in serving as the volun-the trust. (The grantor is the one who transfer-ices performed as an election official or election tary leader of the group at the group's request. If red property to the trust.) This rule applies if the worker. Report these payments on line 1a of you organize tours as a trade or business, re-property (or income from the property) put into Form 1040 or 1040-SR. port the tour's value on Schedule C (Form the trust will or may revert (be returned) to the Foster care providers. Generally, payment 1040). grantor or the grantor's spouse. you receive from a state, a political subdivision, Generally, a trust is a grantor trust if the Gambling winnings. You must include your or a qualified foster care placement agency for grantor has a reversionary interest valued (at gambling winnings in income on Schedule 1 caring for a qualified foster individual in your the date of transfer) at more than 5% of the (Form 1040), line 8b. Winnings from fantasy home is excluded from your income. However, value of the transferred property. sports leagues are gambling winnings. If you you must include in your income payment to the itemize your deductions on Schedule A (Form Expenses paid by another. If your personal extent it’s received for the care of more than five 1040), you can deduct gambling losses you had expenses are paid for by another person, such qualified foster individuals age 19 years or during the year, but only up to the amount of as a corporation, the payment may be taxable older. your winnings. If you’re in the trade or business to you depending upon your relationship with A qualified foster individual is a person who: of gambling, use Schedule C (Form 1040). that person and the nature of the payment. But 1. Is living in a foster family home; and if the payment makes up for a loss caused by Lotteries and raffles. Winnings from lotter-that person, and only restores you to the posi- 2. Was placed there by: ies and raffles are gambling winnings. In

Publication 17 (2025) Chapter 8 Other Income 75 addition to cash winnings, you must include in from qualified U.S. savings bonds you redeem if However, certain noncash employee achieve-your income the fair market value of bonds, you pay qualified higher education expenses in ment awards can be excluded from income.

cars, houses, and other noncash prizes. the same year. For more information on this ex- See Bonuses and awards in chapter 5.



TIP If you win a state lottery prize payable clusion, see Education Savings Bond Program Pulitzer, Nobel, and similar prizes. If you under U.S. Savings Bonds in chapter 6. in installments, see Pub. 525 for more were awarded a prize in recognition of accom-

information. Job interview expenses. If a prospective em- plishments in religious, charitable, scientific, ar-

ployer asks you to appear for an interview and tistic, educational, literary, or civic fields, you

Form W-2G. You may have received a Form either pays you an allowance or reimburses you must generally include the value of the prize in

W-2G, Certain Gambling Winnings, showing the for your transportation and other travel expen- your income. However, you don’t include this

amount of your gambling winnings and any tax ses, the amount you receive is generally not prize in your income if you meet all of the follow-



box 1 on Schedule 1 (Form 1040), line 8b. In- you receive that’s more than your actual expen- • You were selected without any action on ses. taken out of them. Include the amount from taxable. You include in income only the amount ing requirements. clude the amount shown in box 4 on Form 1040 your part to enter the contest or proceed-



For more information on reporting gambling Reporting winnings and recordkeeping. future services as a condition to receiving pay to your employer because your employer the prize or award. continued to pay you while you served jury duty, winnings and recordkeeping, see Gambling • The prize or award is transferred by the include the amount you gave your employer as Losses up to the Amount of Gambling Winnings payer directly to a governmental unit or an income adjustment on Schedule 1 (Form in chapter 12. withheld. included in your income on Schedule 1 (Form • You aren’t required to perform substantial 1040), line 8h. If you gave any of your jury duty or 1040-SR, line 25c, as federal income tax Jury duty. Jury duty pay you receive must be ing.



tance isn’t included in your income. However, if commissions, push money, or similar payments See Pub. 525 for more information about the conditions that apply to the transfer. you receive in your income on Schedule 1 property you receive this way later produces in- (Form 1040), line 8z; or on Schedule C (Form Qualified Opportunity Fund (QOF). Effective come such as interest, dividends, or rents, that 1040) if from your self-employment activity. December 22, 2017, Code section 1400Z-2 income is taxable to you. If property is given to a provides a temporary deferral on inclusion in Gifts and inheritances. In most cases, prop- ignated by you. Kickbacks. You must include kickbacks, side erty you receive as a gift, bequest, or inheri-1040), line 24a, and see the instructions there. tax-exempt charitable organization as des-



trust and the income from it is paid, credited, or Example. You sell cars and help arrange gross income for capital gains invested in distributed to you, that income is also taxable to car insurance for buyers. Insurance brokers pay QOFs, and permanent exclusion of capital you. If the gift, bequest, or inheritance is the in-back part of their commissions to you for refer-gains from the sale or exchange of an invest-come from the property, that income is taxable ring customers to them. You must include the ment in the QOF if the investment is held for at to you. kickbacks in your income. least 10 years. See the Instructions for Form

Inherited pension or individual retire- 8949 on how to report your election to defer eli- Medical savings accounts (Archer MSAs



pension or an IRA, you may have to include part tions for Form 8997, Initial and Annual State- ses, you don’t include in income amounts you ment of Qualified Opportunity Fund (QOF) ment arrangement (IRA). If you inherited a gible gains invested in a QOF. See the instruc- and Medicare Advantage MSAs). In most ca-

of the inherited amount in your income. See withdraw from your Archer MSA or Medicare Survivors and Beneficiaries in Pub. 575 if you Investments, for reporting information. For addi- Advantage MSA if you use the money to pay for



IRA? in Pubs. 590-A and 590-B if you inherited quently Asked Questions at IRS.gov/ medical expenses are those you can deduct on Newsroom/Opportunity-Zones-Frequently-inherited a pension. See What if You Inherit an tional information, see Opportunity Zones Fre- qualified medical expenses. Generally, qualified

an IRA. Schedule A (Form 1040). For more information

Hobby losses. Losses from a hobby aren’t de- about qualified medical expenses, see Pub. Asked-Questions.



ductible from other income. A hobby is an activ- 502. For more information about Archer MSAs Qualified tuition programs (QTPs). A QTP or Medicare Advantage MSAs, see Pub. 969, ity from which you don’t expect to make a profit. (also known as a 529 program) is a program set Health Savings Accounts and Other Tax-Fa-See Activities not engaged in for profit , earlier. up to allow you to either prepay or contribute to vored Health Plans. an account established for paying a student's If you collect stamps, coins, or other qualified higher education expenses at an eligi-Overtime. If you earned qualified overtime, you items as a hobby for recreation and ! ble educational institution. A program can be may be eligible to deduct up to $12,500 CAUTION pleasure, and you sell any of the items, established and maintained by a state, an ($25,000 if married filing jointly) of your qualified your gain is taxable as a capital gain. (See Pub. agency or instrumentality of a state, or an eligi-overtime compensation. Your deduction will be 550.) However, if you sell items from your col-ble educational institution. limited if your modified adjusted gross income is lection at a loss, you can’t deduct the loss. The part of a distribution representing the more than $150,000 ($300,000 if married filing amount paid or contributed to a QTP isn’t inclu-jointly). To be eligible, you and/or your spouse Illegal activities. Income from illegal activities, ded in income. This is a return of the investment who received the overtime must have a valid such as money from dealing illegal drugs, must in the program. SSN. If you are married, you must file a joint re-be included in your income on Schedule 1 turn. In most cases, the beneficiary doesn’t in-(Form 1040), line 8z, or on Schedule C (Form clude in income any earnings distributed from a 1040) if from your self-employment activity. Prizes and awards. If you win a prize in a QTP if the total distribution is less than or equal lucky number drawing, television or radio quiz Indian fishing rights. If you’re a member of a to adjusted qualified higher education expen-program, beauty contest, or other event, you qualified Indian tribe that has fishing rights se-ses. See Pub. 970 for more information. must include it in your income. For example, if cured by treaty, Executive order, or an Act of you win a $50 prize in a photography contest, Railroad retirement annuities. The following Congress as of March 17, 1988, don’t include in you must report this income on Schedule 1 types of payments are treated as pension or an-your income amounts you receive from activities (Form 1040), line 8i. If you refuse to accept a nuity income and are taxable under the rules related to those fishing rights. The income isn’t prize, don’t include its value in your income. explained in Pub. 575, Pension and Annuity In-subject to income tax, self-employment tax, or come. Prizes and awards in goods or services employment taxes. must be included in your income at their fair • Tier 1 railroad retirement benefits that are Interest on frozen deposits. In general, you market value. more than the social security equivalent exclude from your income the amount of inter-benefit. est earned on a frozen deposit. See Interest in-Employee awards or bonuses. Cash come on frozen deposits in chapter 6. • Tier 2 benefits. awards or bonuses given to you by your em-• ployer for good work or suggestions must gen-Interest on qualified savings bonds. You Vested dual benefits. erally be included in your income as wages. may be able to exclude from income the interest

76 Chapter 8 Other Income Publication 17 (2025) Rewards. If you receive a reward for providing Generally, if you have income from sharing





information, include it in your income. economy transactions, or you did gig work, you 9. Sale of home. You may be able to exclude received a Form 1099-K, Payment Card and must include all income received whether you


from income all or part of any gain from the sale Third-Party Network Transactions, or not. See or exchange of your main home. See Pub. 523. the Instructions for Schedule C (Form 1040)

Sale of personal items. If you sold an item and the Instructions for Schedule SE (Form Individual you owned for personal use, such as a car, re- 1040).



frigerator, furniture, stereo, jewelry, or silver- State tax payments. Do not include pay-ware, your gain is taxable as a capital gain. Re- Retirement ments on your tax return made by states under port it as explained in the Instructions for legislatively provided social benefit programs Schedule D (Form 1040). You can’t deduct a for the promotion of the general welfare. To Arrangements loss. qualify for the general welfare exclusion, state However, if you sold an item you held for in-payments must be paid from a governmental vestment, such as gold or silver bullion, coins, fund, be for the promotion of general welfare (IRAs) or gems, any gain is taxable as a capital gain (that is, based on the need of the individual or and any loss is deductible as a capital loss. family receiving such payments), and not repre-What’s New sent compensation for services. Example. You sold a painting on an online auction website for $100. You bought the paint-Stolen property. If you steal property, you ing for $20 at a garage sale years ago. Report must report its fair market value in your income Modified adjusted gross income (AGI) limit your gain as a capital gain as explained in the in the year you steal it unless you return it to its for traditional IRA contributions. For 2025, if Instructions for Schedule D (Form 1040). rightful owner in the same year. you are covered by a retirement plan at work,



Scholarships and fellowships. A candidate your deduction for contributions to a traditional Tips. You may be eligible to take a deduction IRA is reduced (phased out) if your modified for a degree can exclude amounts received as a for qualified tips paid to you in 2025. You can’t AGI is: qualified scholarship or fellowship. A qualified deduct more than $25,000 of those tips. Your

scholarship or fellowship is any amount you re- deduction will be limited if your modified adjus- • More than $126,000 but less than



Amounts used for room and board don’t qualify filing a separate return. ance for taking children to and from school if for the exclusion. See Pub. 970 for more infor-you aren’t in the business of taking children to If you either live with your spouse or file a joint mation on qualified scholarships and fellowship school. You can’t deduct expenses for providing return, and your spouse is covered by a retire-grants. this transportation. ment plan at work but you aren’t, your deduction is phased out if your modified AGI is more than Union benefits and dues. Amounts deducted Payment for services. In most cases, you $236,000 but less than $246,000. If your modi-from your pay for union dues, assessments, must include in income the part of any scholar-fied AGI is $246,000 or more, you can’t take a contributions, or other payments to a union ship or fellowship that represents payment for deduction for contributions to a traditional IRA. can’t be excluded from your income. past, present, or future teaching, research, or See How Much Can You Deduct , later. other services. This applies even if all candi-Strike and lockout benefits. Benefits paid Modified AGI limit for Roth IRA contribu-dates for a degree must perform the services to to you by a union as strike or lockout benefits, tions. For 2025, your Roth IRA contribution receive the degree. including both cash and the fair market value of limit is reduced (phased out) in the following sit-For information about the rules that apply to other property, are usually included in your in-uations. a tax-free qualified tuition reduction provided to ceive that’s for: ted gross income is more than $150,000 $146,000 for a married couple filing a joint • ($300,000 if married filing jointly). To be eligible, return or a qualifying surviving spouse, Tuition and fees to enroll at or attend an you and/or your spouse who received the tips • educational institution; or • More than $79,000 but less than $89,000 must have a valid SSN. If you are married, you for a single individual or head of house-Fees, books, supplies, and equipment re-must file a joint return. hold, or quired for courses at the educational insti-Transporting school children. Don’t include tution. • Less than $10,000 for a married individual in your income a school board mileage allow-

employees and their families by an educational • come as compensation. You can exclude these

benefits from your income only when the facts Your filing status is married filing jointly or

institution, see Pub. 970. qualifying surviving spouse and your modi- clearly show that the union intended them as

Department of Veterans Affairs (VA) pay- gifts to you. fied AGI is at least $236,000. You can’t

make a Roth IRA contribution if your modi-



ded in your income. These allowances aren’t tric utility company and you participate in the Your filing status is single, head of house-• considered scholarship or fellowship grants. ments. Allowances paid by the VA aren’t inclu- Utility rebates. If you’re a customer of an elec- fied AGI is $246,000 or more. utility's energy conservation program, you may



aren’t scholarships or fellowships if you don’t tricity furnished to you (rate reduction), or $150,000. You can’t make a Roth IRA con-have to use the prizes for educational purposes. • A nonrefundable credit against the pur-tribution if your modified AGI is $165,000 You must include these amounts in your income chase price of the electricity. or more. on Schedule 1 (Form 1040), line 8i, whether or • Prizes. Scholarship prizes won in a contest didn’t live with your spouse at any time in • A reduction in the purchase price of elec- 2025 and your modified AGI is at least receive on your monthly electric bill either: hold, or married filing separately and you

not you use the amounts for educational purpo- Your filing status is married filing sepa- The amount of the rate reduction or nonrefunda-



Sharing/gig economy. A sharing economy is time during the year, and your modified AGI is more than zero. You can’t make a ses. ble credit isn’t included in your income. rately, you lived with your spouse at any



one in which assets are shared between individ- Roth IRA contribution if your modified AGI uals for a fee, usually through the Internet. For is $10,000 or more. example, you rent out your car when you don’t See need it, or you share your wi-fi account for a fee. Can You Contribute to a Roth IRA , later.

A gig economy is one in which a short-term

contract or freelance work is the norm, as op-

posed to a permanent job. For example, you

drive for a ride-sharing service, or work as a fit-

ness trainer, babysitter, or tutor.

Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 77 2026 modified AGI limits. You can find infor- other transactions, see Pub. 590-A and Pub. as a “traditional IRA.” A traditional IRA is any mation about the 2026 contribution and AGI lim- 590-B. IRA that isn't a Roth IRA or a SIMPLE IRA. Tra-its in Pub. 590-A. ditional IRAs include traditional IRAs that re-



Reminders Useful Items ceive employer contributions from SEP arrange- ments. Two advantages of a traditional IRA are You may want to see: that:

Publication • You may be able to deduct some or all of

Contributions to both traditional and Roth your contributions to it, depending on your

IRAs. For information on your combined contri- 560 560 Retirement Plans for Small Business circumstances; and



IRAs earnings and gains, aren't taxed until they , later. 590-A 590-A Contributions to Individual are distributed. Retirement Arrangements (IRAs) and Roth IRAs, see bution limit if you contribute to both traditional 575 575 Pension and Annuity Income • Generally, amounts in your IRA, including Roth IRAs and traditional

Statement of required minimum distribu-



tion. If a minimum distribution from your IRA is 590-B 590-B Distributions from Individual Who Can Open a required, the trustee, custodian, or issuer that Retirement Arrangements (IRAs) held the IRA at the end of the preceding year Traditional IRA? must either report the amount of the required Form (and Instructions) minimum distribution to you, or offer to figure it You can open and make contributions to a tradi- 5329 5329 Additional Taxes on Qualified Plans for you. The report or offer must include the tional IRA if you (or, if you file a joint return, your (Including IRAs) and Other date by which the amount must be distributed. spouse) received taxable compensation during Tax-Favored Accounts The report is due January 31 of the year in the year. which the minimum distribution is required. It 8606 8606 Nondeductible IRAs For tax years beginning after 2019, can be provided with the year-end fair market 8915-F value statement that you normally get each 8915-F Qualified Disaster Retirement TIP there is no age limit on making contri-Plan Distributions and Repayments year. No report is required for IRAs of owners butions to your traditional IRA. For more information, see Pub. 590-A. who have died. For these and other useful items, go to IRS.gov/

IRA interest. Although interest earned from Forms. What is compensation? Generally, compen-

your IRA is generally not taxed in the year sation is what you earn from working. Compen- Types of IRAs

earned, it isn’t tax-exempt interest. Tax on your sation includes wages, salaries, tips, professio-



treats as compensation any amount properly



Distributions from retirement plans other than erally compensation for this purpose only if re- red to as traditional SEP IRAs) or Roth IRAs ported in box 1 of your Form W-2. However, for 401(a), 403(a), 403(b), or 457(b) plans, or IRAs, (sometimes referred to as Roth SEP IRAs) of its tax years beginning after 2019, certain non-tui- are included in net investment income. See employees. Individuals may separately make tion fellowship and stipend payments not repor- Form 8960, Net Investment Income Tax—Indi- their own contributions to the same IRAs to ted to you on Form W-2 are treated as taxable viduals, Estates, and Trusts, and its instructions which their employer contributes under a SEP compensation for IRA purposes. These for more information. arrangement. Under a SIMPLE IRA plan, an amounts include taxable non-tuition fellowship Form 8606. To designate contributions as non- employer contributes salary reduction contribu- and stipend payments made to aid you in the deductible, you must file Form 8606. tions (at the election of the employee), matching pursuit of graduate or postdoctoral study and in- contributions and/or nonelective contributions cluded in your gross income under the rules dis- The term “50 or older” is used several to traditional IRAs (sometimes referred to as tra- cussed in chapter 1 of Pub. 970, Tax Benefits TIP times in this chapter. It refers to an IRA ditional SIMPLE IRAs) or Roth IRAs (sometimes for Education. owner who is age 50 or older by the referred to as Roth SIMPLE IRAs) of its employ- Compensation also includes commissions end of the tax year. ees. However, a SIMPLE IRA (whether a tradi- and taxable alimony and separate maintenance tional SIMPLE IRA or a Roth SIMPLE IRA) is payments. subject to certain restrictions that do not gener- Introduction ally apply to other traditional IRAs or Roth IRAs. Self-employment income. If you are For example, an individual cannot make their self-employed (a sole proprietor or a partner), An IRA is a personal savings plan that gives you own contributions to a SIMPLE IRA. In addition, Net Investment Income Tax (NIIT). For pur- shown in box 1 (Wages, tips, other compensa- contributions to their traditional IRAs or Roth tion) of Form W-2, Wage and Tax Statement, poses of the NIIT, net investment income IRAs. In addition, certain employers have ar- provided that this amount is reduced by any doesn't include distributions from 401(a), rangements under which the employer may contribute to IRAs of their employees. amount properly shown in box 11 (Nonqualified 403(a), 403(b), or 457(b) plans, or IRAs. How- plans). ever, these distributions are taken into account Under a SEP arrangement, an employer Scholarship or fellowship payments are gen- when determining the modified AGI threshold. contributes to traditional IRAs (sometimes refer- take a distribution. Don't report this interest on receive for providing personal services. The IRS An IRA can be either a traditional IRA or a Roth your tax return as tax-exempt interest. IRA. In general, individuals may make their own traditional IRA is generally deferred until you nal fees, bonuses, and other amounts you



tax advantages for setting aside money for your compensation is the net earnings from your there are various restrictions related to distribu- trade or business (provided your personal serv- retirement. tions and contributions during the initial 2 years ices are a material income-producing factor) re- This chapter discusses the following topics. of participation in the SIMPLE IRA plan. duced by the total of: • The rules for a traditional IRA (any IRA that References in this publication to traditional • The deduction for contributions made on isn't a Roth or SIMPLE IRA). IRAs generally include traditional SEP IRAs but your behalf to retirement plans, and • The Roth IRA, which features nondeducti- do not include traditional SIMPLE IRAs, unless • The deductible part of your self-employ- ble contributions and tax-free distributions. otherwise stated. Likewise, references to Roth ment tax. IRAs generally include Roth SEP IRAs but do Simplified Employee Pensions (SEPs) and not include Roth SIMPLE IRAs, unless other- Compensation includes earnings from Savings Incentive Match Plans for Employees wise stated. self-employment even if they aren't subject to (SIMPLE) plans aren't discussed in this chapter. self-employment tax because of your religious For more information on these plans and em- Traditional IRAs beliefs. ployees' SEP IRAs and SIMPLE IRAs that are part of these plans, see Pub. 560. Nontaxable combat pay. For IRA purpo- For information about contributions, deduc- In this chapter, the original IRA (sometimes ses, if you were a member of the U.S. Armed tions, withdrawals, transfers, rollovers, and called an ordinary or regular IRA) is referred to

78 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025) Forces, your compensation includes any non- even if they would cause your total contributions IRA for a year at any time during the year or by taxable combat pay you receive. to the IRA to be more than the general limit on the due date for filing your return for that year,





doesn't include any of the following items. Designating year for which contribution is a qualified reservist distribution from an IRA or made. If an amount is contributed to your tradi- • Earnings and profits from property, such as from a section 401(k) or 403(b) plan or similar tional IRA between January 1 and April 15, you What isn't compensation? Compensation payment contributions, you must have received contributions. To be eligible to make these re- not including extensions.




• repayments under How Much Can Be Contrib-For more information, see Qualified reservist year or the previous year) the contribution is for. Pension or annuity income. dend income. should tell the sponsor which year (the current rental income, interest income, and divi- arrangement.

uted? in chapter 1 of Pub. 590-A. the sponsor can assume, and report to the IRS, If you don't tell the sponsor which year it is for,

• Deferred compensation received (compen-



When and How Can a • Conservation Reserve Program (CRP) contributed to your traditional IRA is generally by the due date of your return, not including ex-payments reported on Schedule SE (Form the smaller of the following amounts. tensions. 1040), line 1b. • $7,000 ($8,000 if you are 50 or older). Contributions not required. You don't have to • Any amounts (other than combat pay) you • Your taxable compensation (defined ear-contribute to your traditional IRA for every tax exclude from income, such as foreign lier) for the year. year, even if you can. earned income and housing costs. This is the most that can be contributed regard-How Much Can You less of whether the contributions are to one or more traditional IRAs or whether all or part of Traditional IRA Be the contributions are nondeductible. (See Non-Deduct? deductible Contributions , later.) Qualified re-Opened? • CAUTION Roth IRAs, Income from a partnership for which you Filing before a contribution is made. You later.) don't provide services that are a material can file your return claiming a traditional IRA contribution before the contribution is actually income-producing factor. General limit. For 2025, the most that can be made. Generally, the contribution must be made year). year the sponsor received it). ! tional IRA reduce your limit for contribu-tions to a Roth IRA. (See sation payments postponed from a past Contributions on your behalf to a tradi- that the contribution is for the current year (the

servist repayments don't affect this limit. Generally, you can deduct the lesser of:



You can open a traditional IRA at any time. • The contributions to your traditional IRA for Example 1. You are 34 years old and single the year, or However, the time for making contributions for and earned $24,000 in 2025. Your IRA contribu- any year is limited. See When Can Contribu- • The general limit (or the Kay Bailey Hutchi- tions for 2025 are limited to $7,000. tions Be Made , later. son Spousal IRA limit, if it applies).

You can open different kinds of IRAs with a Example 2. You are an unmarried college However, if you or your spouse were covered by

variety of organizations. You can open an IRA at student working part time and earned $3,500 in an employer retirement plan, you may not be

a bank or other financial institution or with a mu- 2025. Your IRA contributions for 2025 are limi- able to deduct this amount. See Limit if Covered

tual fund or life insurance company. You can ted to $3,500, the amount of your compensa- by Employer Plan, later.



ments. TIP contributions to your traditional IRA. 2025, if you file a joint return and your taxable For more information, see chapter 3 of Kinds of traditional IRAs. Your traditional IRA compensation is less than that of your spouse, Pub. 590-A. can be an individual retirement account or an- IRA must meet Internal Revenue Code require- You may be able to claim a credit for Kay Bailey Hutchison Spousal IRA limit. For also open an IRA through your stockbroker. Any tion.

the most that can be contributed for the year to



IRA. These limits and other rules are explained year to a traditional IRA. Full deduction. If neither you nor your spouse below. b. Any contribution for the year to a Roth was covered for any part of the year by an em-IRA on behalf of your spouse. ployer retirement plan, you can take a deduction Community property laws. Except as dis-for total contributions to one or more traditional cussed later under Kay Bailey Hutchison This means that the total combined contribu-IRAs of up to the lesser of: Spousal IRA limit , each spouse figures their tions that can be made for the year to your IRA limit separately, using their own compensation. and your spouse's IRA can be as much as • $7,000 ($8,000 if you are 50 or older in This is the rule even in states with community $14,000 ($15,000 if only one of you is 50 or 2025), or property laws. older, or $16,000 if both of you are 50 or older). • 100% of your compensation. Brokers' commissions. Brokers' commis-This limit is reduced by any contributions made sions paid in connection with your traditional When Can Contributions to a section 501(c)(18) plan on your behalf. IRA are subject to the contribution limit. Be Made? Trustees' fees. Trustees' administrative fees Kay Bailey Hutchison Spousal IRA. In the case of a married couple with unequal compen-aren't subject to the contribution limit. As soon as you open your traditional IRA, con-sation who file a joint return, the deduction for tributions can be made to it through your Qualified reservist repayments. If you are (or chosen sponsor (trustee or other administrator). How Much Can Be 2. The total compensation includible in the IRA contributions. You are also not able to de- gross income of both you and your spouse duct these fees as an itemized deduction. Contributed? for the year, reduced by the following two Brokers' commissions. Brokers' commis- amounts. sions are part of your IRA contribution and, as There are limits and other rules that affect the a. Your spouse's IRA contribution for the such, are deductible subject to the limits. amount that can be contributed to a traditional ployer or employee association trust account. that are billed separately and paid in connection 1. $7,000 ($8,000 if you are 50 or older). with your traditional IRA aren't deductible as nuity. It can be part of either a SEP or an em- your IRA is the smaller of the following amounts. Trustees' fees. Trustees' administrative fees

were) a member of a reserve component and Contributions must be in the form of money contributions to the traditional IRA of the spouse you were ordered or called to active duty after (cash, check, or money order). Property can't with less compensation is limited to the lesser September 11, 2001, you may be able to con- be contributed. of the following amounts. tribute (repay) to an IRA amounts equal to any 1. $7,000 ($8,000 if the spouse with the

qualified reservist distributions you received. Contributions must be made by due date. lower compensation is 50 or older in You can make these repayment contributions Contributions can be made to your traditional 2025).

Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 79

2. The total compensation includible in the A defined contribution plan is a plan that a. The United States,



gross income of both spouses for the year provides for a separate account for each person b. A state or political subdivision of a reduced by the following three amounts. covered by the plan. Types of defined contribu-state, or tion plans include profit-sharing plans, stock bo-a. The IRA deduction for the year of the nus plans, and money purchase pension plans. c. An instrumentality of either (a) or (b) spouse with the greater compensa-For additional information, see Pub. 590-A. above. tion.



This limit is reduced by any contributions to a b. Any designated nondeductible contri- Defined benefit plan. If you are eligible to par- 2. Your accrued retirement benefits at the be- ticipate in your employer's defined benefit plan ginning of the year won't provide more bution for the year made on behalf of for the plan year that ends within your tax year, than $1,800 per year at retirement. the spouse with the greater compen- you are covered by the plan. This rule applies sation. even if you: Limit if Covered by Employer Plan c. Any contributions for the year to a • Declined to participate in the plan, If either you or your spouse was covered by an Roth IRA on behalf of the spouse with • Didn't make a required contribution, or employer retirement plan, you may be entitled the greater compensation. to only a partial (reduced) deduction or no de- • Didn't perform the minimum service re- duction at all, depending on your income and quired to accrue a benefit for the year. 501(c)(18) plan on behalf of the spouse with the your filing status. lesser compensation. A defined benefit plan is any plan that isn't a Your deduction begins to decrease (phase defined contribution plan. In a defined benefit out) when your income rises above a certain Note: If you were divorced or legally sepa- plan, the level of benefits to be provided to each amount and is eliminated altogether when it rated (and didn't remarry) before the end of the participant is spelled out in the plan. The plan reaches a higher amount. These amounts vary year, you can't deduct any contributions to your administrator figures the amount needed to pro- depending on your filing status. spouse's IRA. After a divorce or legal separa- vide those benefits, and those amounts are To determine if your deduction is subject to tion, you can deduct only contributions to your contributed to the plan. Defined benefit plans in- phaseout, you must determine your modified own IRA. Your deductions are subject to the clude pension plans and annuity plans. AGI and your filing status. See Filing status and rules for single individuals. Modified AGI , later. Then use Table 9-1 or Ta- No vested interest. If you accrue a benefit for Covered by an employer retirement plan. If ble 9-2 to determine if the phaseout applies. a plan year, you are covered by that plan even if you or your spouse was covered by an em- you have no vested interest in (legal right to) the Social security recipients. Instead of using ployer retirement plan at any time during the accrual. Table 9-1 or Table 9-2 , use the worksheets in year for which contributions were made, your Appendix B of Pub. 590-A if, for the year, all of deduction may be further limited. This is dis- Situations in Which You Aren’t the following apply. cussed later under Limit if Covered by Employer Covered • You received social security benefits. Plan . Limits on the amount you can deduct don't

affect the amount that can be contributed. See Unless you are covered under another em- • You received taxable compensation.

Nondeductible Contributions, later. ployer plan, you aren't covered by an employer • Contributions were made to your traditional plan if you are in one of the situations described



Plan? • You or your spouse was covered by an em- Social security or railroad retirement. Cov- ployer retirement plan. erage under social security or railroad retire- Are You Covered by an Employer below. IRA.

has a box used to indicate whether you were The Form W-2 you receive from your employer ment isn't coverage under an employer retire- Use those worksheets to figure your IRA deduc-



should be checked if you were covered. taxable portion, if any, of your social security Benefits from a previous employer's plan. If benefits. covered for the year. The “Retirement plan” box ment plan. tion, your nondeductible contribution, and the

Reservists and volunteer firefighters should you receive retirement benefits from a previous

also see Situations in Which You Aren’t Cov- employer's plan, you aren't covered by that Deduction phaseout. If you are covered by an



ered by your employer's retirement plan, you If you aren't certain whether you were cov- any social security retirement benefits, your IRA Reservists. If the only reason you participate ered, later. plan. employer retirement plan and you didn't receive

should ask your employer. in a plan is because you are a member of a re- deduction may be reduced or eliminated de-

serve unit of the U.S. Armed Forces, you may as shown in pending on your filing status and modified AGI

Federal judges. For purposes of the IRA de- not be covered by the plan. You aren't covered Table 9-1.

duction, federal judges are covered by an em- by the plan if both of the following conditions are If your spouse is covered. If you aren't ployer retirement plan. met. covered by an employer retirement plan, but

1. The plan you participate in is established your spouse is, and you didn't receive any so-



Covered? be reduced or eliminated entirely depending on a. The United States, your filing status and modified AGI as shown in Special rules apply to determine the tax years For Which Year(s) Are You cial security benefits, your IRA deduction may for its employees by:

for which you are covered by an employer plan. b. A state or political subdivision of a Table 9-2.

These rules differ depending on whether the state, or Filing status. Your filing status depends pri-plan is a defined contribution plan or a defined marily on your marital status. For this purpose, c. An instrumentality of either (a) or (b)

benefit plan. you need to know if your filing status is single, above.

Tax year. Your tax year is the annual account- 2. You didn't serve more than 90 days on ac- head of household, married filing jointly, qualify-



income and expenses on your income tax re- for training). tus, see Filing Status. turn. For almost all people, the tax year is the Volunteer firefighters. If the only reason you calendar year. Lived apart from spouse. If you didn't live ing period you use to keep records and report tive duty during the year (not counting duty rately. If you need more information on filing sta-ing surviving spouse, or married filing sepa-



Defined contribution plan. Generally, you are participate in a plan is because you are a volun- with your spouse at any time during the year teer firefighter, you may not be covered by the and you file a separate return, your filing status, covered by a defined contribution plan for a tax plan. You aren't covered by the plan if both of for this purpose, is single. year if amounts are contributed or allocated to the following conditions are met. your account for the plan year that ends with or Modified AGI. You may be able to use Work- 1. The plan you participate in is established within that tax year. sheet 9-1 to figure your modified AGI. However, for its employees by: if you made contributions to your IRA for 2025

80 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025) Retirement Plan at Work the AGI amount on line 11a without taking into account any of the following amounts. Table 9-1. Effect of Modified AGI1 on Deduction if You Are Covered by When filing Form 1040 or 1040-SR, refigure

If you are covered by a retirement plan at work, use this table to determine if your modified AGI • IRA deduction. affects the amount of your deduction.

• Student loan interest deduction.

IF your filing status is... AND your modified AGI is... THEN you can take... • Foreign earned income exclusion.



or more than $79,000 • Exclusion of qualified savings bond interest a partial deduction. shown on Form 8815, Exclusion of Interest but less than $89,000 From Series EE and I U.S. Savings Bonds Single • Foreign housing exclusion or deduction. $79,000 or less a full deduction.

Head of household Issued After 1989. $89,000 or more no deduction.



Married filing jointly • Exclusion of employer-provided adoption $126,000 or less a full deduction. benefits shown on Form 8839, Qualified more than $126,000 a partial deduction. Adoption Expenses. or but less than $146,000 This is your modified AGI.

Qualifying surviving $146,000 or more no deduction. spouse

Married filing less than $10,000 a partial deduction.

separately2 $10,000 or more no deduction.

1 Modified AGI (adjusted gross income). See Modified AGI, later.

2 If you didn't live with your spouse at any time during the year, your filing status is considered Single for this

purpose (therefore, your IRA deduction is determined under the “Single” column).

Table 9-2. Effect of Modified AGI1 on Deduction if You Aren’t Covered by Retirement Plan at Work

If you aren't covered by a retirement plan at work, use this table to determine if your modified AGI affects the amount of your deduction.

IF your filing status is... AND your modified AGI is... THEN you can take...

Single, any amount a full deduction.

Head of household, or

Qualifying surviving spouse

Married filing jointly or any amount a full deduction.

separately with a spouse who

isn't covered by a plan at work

Married filing jointly with a $236,000 or less a full deduction.



spouse who is covered by a plan more than $236,000 a partial deduction. at work but less than $246,000

$246,000 or more no deduction.

Married filing separately with a less than $10,000 a partial deduction.

spouse who is covered by a plan $10,000 or more no deduction. at work 2

1 Modified AGI (adjusted gross income). See Modified AGI, on previous page.

2 You are entitled to the full deduction if you didn't live with your spouse at any time during the year.

and received a distribution from your IRA in Don't assume that your modified AGI is

2025, see Pub. 590-A. ! the same as your compensation. Your modified AGI may include income in CAUTION

addition to your compensation (discussed ear-lier), such as interest, dividends, and income

from IRA distributions.



Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 81 Worksheet 9-1. Figuring Your Modified AGI

Keep for Your Records

Use this worksheet to figure your modified AGI for traditional IRA purposes.

1. Enter your AGI from Form 1040 or 1040-SR, line 11a, figured without taking into account the amount from

Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . . . . . . . . . . . . . 2.

3. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 . . . . . . . . . . . . . . . . . 3.

4. Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter any excludable savings bond interest from Form 8815, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Enter any excluded employer-provided adoption benefits from Form 8839, line 30 . . . . . . . . . . . . . . . . . . 6.

7. Add lines 1 through 6. This is your modified AGI for traditional IRA purposes . . . . . . . . . . . . . . . . . . . . . . 7.

Both contributions for 2025 and distribu- Form 8606. To designate contributions as non- Inherited IRAs

tions in 2025. If all three of the following apply, deductible, you must file Form 8606.



any IRA distributions you received in 2025 may You don't have to designate a contribution If you inherit a traditional IRA, you are called a be partly tax free and partly taxable. as nondeductible until you file your tax return. beneficiary. A beneficiary can be any person or When you file, you can even designate other-• You received distributions in 2025 from one entity the owner chooses to receive the benefits wise deductible contributions as nondeductible. or more traditional IRAs. of the IRA after the owner dies. Beneficiaries of You must file Form 8606 to report nondeduc-a traditional IRA must include in their gross in-• You made contributions to a traditional IRA tible contributions even if you don't have to file a come any taxable distributions they receive. for 2025. tax return for the year. Inherited from spouse. If you inherit a tradi-• Some of those contributions may be non-A Form 8606 isn't used for the year that tional IRA from your spouse, you generally have deductible contributions. ! you make a rollover from a qualified re-the following three choices. If this is your situation, you must figure the taxa-CAUTION tirement plan to a traditional IRA and 1. Treat it as your own IRA by designating ble part of the traditional IRA distribution before the rollover includes nontaxable amounts. In yourself as the account owner. you can figure your modified AGI. To do this, those situations, a Form 8606 is completed for you can use Worksheet 1-1 in Pub. 590-B. the year you take a distribution from that IRA. 2. Treat it as your own by rolling it over into

If at least one of the above doesn't apply, fig- See Form 8606 under Distributions Fully or your IRA, or to the extent it is taxable, into

ure your modified AGI using Worksheet 9-1. Partly Taxable, later. a:



How to figure your reduced IRA deduction. a. Qualified employer plan, Failure to report nondeductible contribu-You can figure your reduced IRA deduction for tions. If you don't report nondeductible contri-b. Qualified employee annuity plan (sec-Form 1040 or 1040-SR by using the worksheets butions, all of the contributions to your tradi-tion 403(a) plan), in chapter 1 of Pub. 590-A. Also, the Instruc-tional IRA will be treated as deductible tions for Form 1040 include similar worksheets c. Tax-sheltered annuity plan (section contributions when withdrawn. All distributions that you may be able to use instead. 403(b) plan), or from your IRA will be taxed unless you can

Reporting Deductible ductible contributions were made. show, with satisfactory evidence, that nonde- d. Deferred compensation plan of a state

Contributions or local government (section 457



When filing Form 1040 or 1040-SR, enter your the amount of nondeductible contributions on 3. Treat yourself as the beneficiary rather IRA deduction on Schedule 1 (Form 1040), your Form 8606 for any tax year, you must pay a than treating the IRA as your own. Penalty for overstatement. If you overstate plan). line 20. penalty of $100 for each overstatement, unless

it was due to reasonable cause. Treating it as your own. You will be consid-



Contributions will have to pay a $50 penalty if you don't file a • Contributions (including rollover contribu-required Form 8606, unless you can prove that tions) are made to the inherited IRA, or the failure was due to reasonable cause. Although your deduction for IRA contributions Nondeductible ered to have chosen to treat the IRA as your Penalty for failure to file Form 8606. You own if:

may be reduced or eliminated, contributions • You don't take the required minimum distri-



can be made to your IRA up to the general limit bution for a year as a beneficiary of the Tax on earnings on nondeductible contribu- or, if it applies, the Kay Bailey Hutchison IRA. tions. As long as contributions are within the Spousal IRA limit . The difference between your contribution limits, none of the earnings or gains You will only be considered to have chosen to total permitted contributions and your IRA de- on contributions (deductible or nondeductible) treat the IRA as your own if: duction, if any, is your nondeductible contribu- will be taxed until they are distributed. See tion. • You are the sole beneficiary of the IRA, and When Can You Withdraw or Use IRA Assets , • later. You have an unlimited right to withdraw Example. You are 30 years old and single. amounts from it. In 2025, you were covered by a retirement plan Cost basis. You will have a cost basis in your However, if you receive a distribution from at work. Your salary was $67,000. Your modified traditional IRA if you made any nondeductible your deceased spouse's IRA, you can roll that AGI was $90,000. You made a $7,000 IRA con- contributions. Your cost basis is the sum of the distribution over into your own IRA within the tribution for 2025. Because you were covered nondeductible contributions to your IRA minus 60-day time limit, as long as the distribution isn't by a retirement plan and your modified AGI was any withdrawals or distributions of nondeducti- a required distribution, even if you aren't the over $89,000, you can't deduct the $7,000 IRA ble contributions. sole beneficiary of your deceased spouse's contribution. You must designate this contribu- IRA. tion as a nondeductible contribution by report-

ing it on Form 8606, as explained next. Inherited from someone other than spouse.

If you inherit a traditional IRA from anyone other

than your deceased spouse, you can't treat the

82 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025) inherited IRA as your own. This means that you other (or the same) IRA in any 1-year period, re-

means you can't roll over any amounts into or Treatment of rollovers. You can't deduct a can't make any contributions to the IRA. It also gardless of the number of IRAs you own. The



a trustee-to-trustee transfer as long as the IRA rollover distribution on your tax return as dis- IRAs (whether traditional, Roth, or SIMPLE), ef- fectively treating them as one IRA for purposes cussed later under out of the inherited IRA. However, you can make rollover contribution, but you must report the limit applies by aggregating all of an individual's



into which amounts are being moved is set up Reporting rollovers from of the limit. However, trustee-to-trustee transfers IRAs and Reporting rollovers from employer and maintained in the name of the deceased between IRAs aren't limited and rollovers from plans . IRA owner for the benefit of you as beneficiary. traditional IRAs to Roth IRAs (conversions)



Can You Move Retirement See Written explanation to recipients in Pub. IRA-1, IRA-2, and IRA-3. You didn't take any distributions from your IRAs in 2025. On Janu- 590-A. Plan Assets? ary 1, 2026, you took a distribution from IRA-1 Kinds of rollovers from a traditional IRA. and rolled it over into IRA-2 on the same day. You may be able to roll over, tax free, a distribu- You can transfer, tax free, assets (money or For 2026, you can't roll over any other 2025 IRA tion from your traditional IRA into a qualified der Rollover From One IRA Into Another, later. rollover treatment must be given to you by the Example. You have three traditional IRAs: plan (other than an IRA) making the distribution. For more information, see Inherited IRAs un- aren't limited. Rollover notice. A written explanation of

property) from other retirement plans (including distribution, including a rollover distribution in-

traditional IRAs) to a traditional IRA. You can plan. These plans include the federal Thrift Sav- volving IRA-3. This wouldn’t apply to a



Transfers to Roth IRAs. Under certain condi-• Partial rollovers. If you withdraw assets from a Rollovers. annuity plans (section 403(b) plans). The part of traditional IRA, you can roll over part of the with- the distribution that you can roll over is the part • Transfers incident to a divorce. drawal tax free and keep the rest of it. The that would otherwise be taxable (includible in amount you keep will generally be taxable (ex- your income). Qualified plans may, but aren't re- cept for the part that is a return of nondeductible tions, you can move assets from a traditional make the following kinds of transfers. ings Plan (for federal employees), deferred trustee-to-trustee transfer or a Roth IRA conver-• compensation plans of state or local govern- sion. Transfers from one trustee to another. ments (section 457 plans), and tax-sheltered



Roth IRA. You can also move assets from a Time limit for making a rollover contribu- subject to the 10% additional tax on early distri- tion. You must generally make the rollover con- butions, discussed later under What Acts Result qualified retirement plan to a Roth IRA. See Can tribution by the 60th day after the day you re- in Penalties or Additional Taxes IRA or from a designated Roth account to a contributions). The amount you keep may be quired to, accept such rollovers.



You Move Amounts Into a Roth IRA? . under ceive the distribution from your traditional IRA or Roth IRAs later. Required distributions. Amounts that must your employer's plan. be distributed during a particular year under the The IRS may waive the 60-day requirement Trustee-to-Trustee Transfer required minimum distribution rules (discussed where the failure to do so would be against later) aren't eligible for rollover treatment. A transfer of funds in your traditional IRA from equity or good conscience, such as in the event one trustee directly to another, either at your re- of a casualty, disaster, or other event beyond Inherited IRAs. If you inherit a traditional IRA quest or at the trustee's request, isn't a rollover. your reasonable control. For more information, from your spouse, you can generally roll it over, This includes the situation where the current see Can You Move Retirement Plan Assets? in or you can choose to make the inherited IRA

trustee issues a check to the new trustee, but chapter 1 of Pub. 590-A. your own. See Treating it as your own, earlier.



gives it to you to deposit. Because there is no Not inherited from spouse. If you inherit a Extension of rollover period. If an amount distribution to you, the transfer is tax free. Be- traditional IRA from someone other than your cause it isn't a rollover, it isn't affected by the distributed to you from a traditional IRA or a spouse, you can't roll it over or allow it to receive 1-year waiting period required between roll- qualified employer retirement plan is a frozen a rollover contribution. You must withdraw the overs, discussed later under Rollover From One deposit at any time during the 60-day period al- IRA assets within a certain period. For more in- lowed for a rollover, special rules extend the roll- IRA Into Another . For information about direct formation, see When Must You Withdraw As- transfers to IRAs from retirement plans other over period. For more information, see Can You sets? (Required Minimum Distributions) in than IRAs, see Can You Move Retirement Plan Move Retirement Plan Assets? in chapter 1 of chapter 1 of Pub. 590-B. Assets? in chapter 1 and Can You Move Pub. 590-A.

Amounts Into a Roth IRA? in chapter 2 of Pub. Reporting rollovers from IRAs. Report any



Rollovers You can withdraw, tax free, all or part of the as- Enter the total amount of the distribution on Generally, a rollover is a tax-free distribution to sets from one traditional IRA if you reinvest Form 1040 or 1040-SR, line 4a. If the total you of cash or other assets from one retirement them within 60 days in the same or another tra-amount on Form 1040 or 1040-SR, line 4a, was plan that you contribute (roll over) to another re-590-A. Rollover From One IRA Into rollover from one traditional IRA to the same or Another another traditional IRA on Form 1040 or 1040-SR as follows.



tirement plan. The contribution to the second ditional IRA. Because this is a rollover, you can't rolled over, enter zero on Form 1040 or deduct the amount that you reinvest in an IRA. 1040-SR, line 4b. If the total distribution wasn't retirement plan is called a rollover contribution. Waiting period between rollovers. Generally, rolled over, enter the taxable portion of the part that wasn't rolled over on Form 1040 or if you make a tax-free rollover of any part of a Note: An amount rolled over tax free from distribution from a traditional IRA, you can't, 1040-SR, line 4b. Check the box on line 4c for one retirement plan to another is generally in- within a 1-year period, make a tax-free rollover rollovers. For more information, see the Instruc- cludible in income when it is distributed from the of any later distribution from that same IRA. You tions for Form 1040. second plan. also can't make a tax-free rollover of any If you rolled over the distribution into a quali-

Kinds of rollovers to a traditional IRA. You amount distributed, within the same 1-year pe- fied plan (other than an IRA) or you make the can roll over amounts from the following plans riod, from the IRA into which you made the rollover in 2026, attach a statement explaining into a traditional IRA. tax-free rollover. what you did.



• The 1-year period begins on the date you re-A traditional IRA. ceive the IRA distribution, not on the date you • An employer's qualified retirement plan for roll it over into an IRA. Rules apply to the num-its employees. ber of rollovers you can have with your tradi-• A deferred compensation plan of a state or tional IRAs. See Application of one-rollover limi-tation local government (section 457 plan). next.

• A tax-sheltered annuity plan (section Application of one-rollover limitation. You

403(b) plan). can make only one rollover from an IRA to an-

Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 83 Into an IRA treated as an eligible rollover distribution if you income, you may have to increase your with- are the designated beneficiary of the plan and holding or make estimated tax payments. See You can roll over into a traditional IRA all or part Rollover From Employer's Plan receive the distribution on your behalf can be If you must include any amount in your gross



from your (or your deceased spouse's): inherited IRAs, see Inherited IRAs, earlier. Recharacterizations • Employer's qualified pension, profit-shar-Reporting rollovers from employer plans. You may be able to treat a contribution made to ing, or stock bonus plan; of an eligible rollover distribution you receive as an inherited IRA. For more information about not the employee's spouse. The IRA is treated chapter 4.

Enter the total distribution (before income tax or one type of IRA as having been made to a dif-



• or 1040-SR, line 4a. This amount should be ing the contribution. See Can You Move Retire- Tax-sheltered annuity plan (section 403(b) shown in box 1 of Form 1099-R, Distributions plan); or ment Plan Assets? in chapter 1 of Pub. 590-A From Pensions, Annuities, Retirement or • Annuity plan; other deductions were withheld) on Form 1040 ferent type of IRA. This is called recharacteriz-

• for more detailed information. Governmental deferred compensation plan Profit-Sharing Plans, IRAs, Insurance Con-

(section 457 plan). How to recharacterize a contribution. To re- tracts, etc. From this amount, subtract any con-

A qualified plan is one that meets the re- tributions (usually shown in box 5 of Form characterize a contribution, you must generally

quirements of the Internal Revenue Code. 1099-R) that were taxable to you when made. have the contribution transferred from the first

From that result, subtract the amount that was IRA (the one to which it was made) to the sec-

Eligible rollover distribution. Generally, an ond IRA in a trustee-to-trustee transfer. If the rolled over either directly or within 60 days of re-

eligible rollover distribution is any distribution of transfer is made by the due date (including ex- ceiving the distribution. Enter the remaining

all or part of the balance to your credit in a quali- tensions) for your tax return for the year during amount, even if zero, on Form 1040 or

fied retirement plan except the following. which the contribution was made, you can elect 1040-SR, line 4b. Check the box on line 4c for



2. A hardship distribution. draw IRA Assets? (Required Minimum Transfers Incident to Divorce you must do all three of the following. Distributions) ). If an interest in a traditional IRA is transferred • Include in the transfer any net income allo-from your spouse or former spouse to you by a cable to the contribution. If there was a divorce or separate maintenance decree or a 3. Any of a series of substantially equal peri-1. A required minimum distribution (ex- rollovers. to treat the contribution as having been origi- plained later under nally made to the second IRA instead of to the When Must You With- first IRA. If you recharacterize your contribution,



odic distributions paid at least once a year interest in the IRA, starting from the date of the over: transfer, is treated as your IRA. The transfer is written document related to such a decree, the be a negative amount. loss, the net income you must transfer may • Report the recharacterization on your tax

a. Your lifetime or life expectancy, tax free. For detailed information, see Distribu- return for the year during which the contri-b. The lifetimes or life expectancies of tions under divorce or similar proceedings (al- bution was made.

you and your beneficiary, or ternate payees) under Rollover From Employ- • Treat the contribution as having been

er's Plan Into an IRA in Pub. 590-A. made to the second IRA on the date that it



4. Corrective distributions of excess contribu- Converting From Any Traditional No recharacterizations of conversions tions or excess deferrals, and any income c. A period of 10 years or more. was actually made to the first IRA.

allocable to the excess, or of excess an- IRA to a Roth IRA made in 2018 or later. A conversion of a tradi-



5. A loan treated as a distribution because it nual additions and any allocable gains. Allowable conversions. You can withdraw all tional IRA to a Roth IRA, and a rollover from any other eligible retirement plan to a Roth IRA, or part of the assets from a traditional IRA and made in tax years beginning after tax year reinvest them (within 60 days) in a Roth IRA. 2017, can’t be recharacterized as having been doesn't satisfy certain requirements either The amount that you withdraw and timely con- made to a traditional IRA. If you made a conver- when made or later (such as upon de- tribute (convert) to the Roth IRA is called a con- sion in the 2017 tax year, you had until the due fault), unless the participant's accrued version contribution. If properly (and timely) rol- date (including extensions) for filing the return benefits are reduced (offset) to repay the led over, the 10% additional tax on early for that tax year to recharacterize it. loan. For more information, see Plan loan distributions won't apply. However, a part or all

offsets under Time Limit for Making a Roll- of the conversion contribution from your tradi- No deduction allowed. You can't deduct the over Contribution in Pub. 590-A. tional IRA is included in your gross income. contribution to the first IRA. Any net income you



clude both amounts that would be taxable and 6. Dividends on employer securities. transfer with the recharacterized contribution is Required distributions. You can't convert treated as earned in the second IRA. amounts that must be distributed from your tra- 7. The cost of life insurance coverage. ditional IRA for a particular year (including the How do you recharacterize a contribution? Your rollover into a traditional IRA may in- calendar year in which you reach age 73 under To recharacterize a contribution, you must notify the required minimum distribution rules (dis- both the trustee of the first IRA (the one to amounts that wouldn’t be taxable if they were cussed later)). which the contribution was actually made) and distributed to you but not rolled over. To the ex- the trustee of the second IRA (the one to which Income. You must include in your gross in- tent the distribution is rolled over into a tradi- the contribution is being moved) that you have come distributions from a traditional IRA that tional IRA, it isn’t includible in your income. elected to treat the contribution as having been you would have had to include in income if you made to the second IRA rather than the first. Any nontaxable amounts that you roll hadn't converted them into a Roth IRA. These You must make the notifications by the date of TIP over into your traditional IRA become amounts are normally included in income on the transfer. Only one notification is required if part of your basis (cost) in your IRAs. your return for the year that you converted them both IRAs are maintained by the same trustee. To recover your basis when you take distribu- from a traditional IRA to a Roth IRA. The notification(s) must include all of the follow- tions from your IRA, you must complete Form You don't include in gross income any part of ing information. 8606 for the year of the distribution. See Form a distribution from a traditional IRA that is a re- • 8606 under Distributions Fully or Partly Taxable, turn of your basis , as discussed later. The type and amount of the contribution to later. You must file Form 8606 to report 2025 con- the first IRA that is to be recharacterized.



Rollover by nonspouse beneficiary. A direct versions from traditional, SEP, or SIMPLE IRAs • The date on which the contribution was to a Roth IRA in 2025 (unless you recharacter- made to the first IRA and the year for which transfer from a deceased employee's qualified ized the entire amount) and to figure the amount it was made. pension, profit-sharing, or stock bonus plan; an- to include in income. nuity plan; tax-sheltered annuity (section • A direction to the trustee of the first IRA to transfer in a trustee-to-trustee transfer the 403(b)) plan; or governmental deferred com-

pensation (section 457) plan to an IRA set up to

84 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025)

amount of the contribution and any net in- tions under What Acts Result in Penalties or Ad- decedent's IRA, see When Must You Withdraw come (or loss) allocable to the contribution ditional Taxes? in Pub. 590-B. Assets? (Required Minimum Distributions) in to the trustee of the second IRA. chapter 1 of Pub. 590-B.



Reporting a recharacterization. If you elect • The name of the trustee of the first IRA and When Must You Withdraw the name of the trustee of the second IRA. Are Distributions Taxable? IRA Assets? (Required • Any additional information needed to make the transfer. Minimum Distributions) In general, distributions from a traditional IRA are taxable in the year you receive them. You can't keep funds in a traditional IRA indefi-to recharacterize a contribution to one IRA as a Exceptions. Exceptions to distributions from nitely. Eventually, they must be distributed. If traditional IRAs being taxable in the year you re-contribution to another IRA, you must report the there are no distributions, or if the distributions recharacterization on your tax return as directed ceive them are: aren't large enough, you may have to pay a 25% by Form 8606 and its instructions. You must excise tax on the amount not distributed as re-• Rollovers; treat the contribution as having been made to quired. See Excess Accumulations (Insufficient • Qualified charitable distributions (QCDs) , the second IRA. Distributions) , later. The requirements for dis-discussed later; tributing IRA funds differ depending on whether When Can You Withdraw you are the IRA owner or the beneficiary of a • Tax-free withdrawals of contributions , dis-decedent's IRA. cussed earlier; and or Use IRA Assets? Required minimum distribution. The amount • The return of nondeductible contributions, discussed later under that must be distributed each year is referred to Distributions Fully or There are rules limiting use of your IRA assets as the “required minimum distribution.” Partly Taxable . and distributions from it. Violation of the rules Although a conversion of a traditional generally results in additional taxes in the year Distributions not eligible for rollover. ! of violation. See What Acts Result in Penalties Amounts that must be distributed (required min-IRA is considered a rollover for Roth or Additional Taxes , later. imum distributions) during a particular year CAUTION IRA purposes, it isn't an exception to the rule that distributions from a traditional IRA aren't eligible for rollover treatment. Contributions returned before the due date are taxable in the year you receive them. Con-of return. If you made IRA contributions in IRA owners. If you are the owner of a tradi-version distributions are includible in your gross 2025, you can withdraw them tax free by the tional IRA, you must generally start receiving income subject to this rule and the special rules due date of your return. If you have an extension distributions from your IRA by April 1 of the year for conversions explained in Converting From of time to file your return, you can withdraw following the year in which you reach age 73. Any Traditional IRA Into a Roth IRA under Can them tax free by the extended due date. You April 1 of the year following the year in which You Move Retirement Plan Assets? in chapter 1 can do this if, for each contribution you with-you reach age 73 is referred to as the “applica-of Pub. 590-A. draw, both of the following conditions apply. ble required beginning date.”

• You didn't take a deduction for the contri- Qualified charitable distributions (QCDs). A Distributions by the required beginning



• amount for each year starting with the year you made directly by the trustee of your IRA to an You withdraw any interest or other income organization eligible to receive tax deductible bution. QCD is generally a nontaxable distribution date. You must receive at least a minimum earned on the contribution. You can take reach age 73. If you don't (or didn't) receive that contributions. See Qualified Charitable Distribu-minimum amount in the year you become age into account any loss on the contribution tions in Pub. 590-B for more information. 73, then you must receive distributions for the while it was in the IRA when figuring the year you become age 73 by April 1 of the next amount that must be withdrawn. If there A QCD will count towards your required year.

was a loss, the net income earned on the TIP minimum distribution. See Qualified contribution may be a negative amount. If an IRA owner dies after reaching age 73 charitable distributions under Are Dis-

but before April 1 of the next year, no minimum tributions Taxable? in chapter 1 of Pub. 590-B

Note: To figure the amount you must with- distribution is required because death occurred for more information.

draw, see Worksheet 1-4 under When Can You before the required beginning date.



Withdraw or Use Assets? in chapter 1 of Pub. Ordinary income. Distributions from tradi- Individuals who reach age 72 after De- 590-A. tional IRAs that you include in income are taxed TIP cember 31, 2022, must begin receiving as ordinary income. their required minimum distributions by Earnings includible in income. You must April 1 of the year following the year they reach No special treatment. In figuring your tax, you include in income any earnings on the contribu- age 73. can't use the 10-year tax option or capital gain tions you withdraw. Include the earnings in in- treatment that applies to lump-sum distributions come for the year in which you made the contri- Even if you begin receiving distribu- from qualified retirement plans. butions, not in the year in which you withdraw ! tions before you attain age 73, you them. CAUTION must begin figuring and receiving re- Distributions Fully or Partly quired minimum distributions by your required Generally, except for any part of a with- Taxable drawal that is a return of nondeductible beginning date. ! contributions (basis), any withdrawal of CAUTION Distributions from your traditional IRA may be fully or partly taxable, depending on whether your contributions after the due date (or exten- Distributions after the required beginning your IRA includes any nondeductible contribu- ded due date) of your return will be treated as a date. The required minimum distribution for tions. taxable distribution. Excess contributions can any year after the year you turn age 73 must be



also be recovered tax free as discussed under made by December 31 of that later year. Fully taxable. If only deductible contributions What Acts Result in Penalties or Additional were made to your traditional IRA (or IRAs, if Taxes , later. Beneficiaries. If you are the beneficiary of a you have more than one), you have no basis in your IRA. Because you have no basis in your decedent's traditional IRA, the requirements for Early distributions tax. The 10% additional distributions from that IRA generally depend on IRA, any distributions are fully taxable when re-tax on distributions made before you reach age whether the IRA owner died before or after the ceived. See Reporting taxable distributions on 59 1 / 2 doesn't apply to these tax-free withdraw-required beginning date for distributions. your return , later. als of your contributions. However, the distribu-

tion of interest or other income must be repor- More information. For more information, in- Partly taxable. If you made nondeductible ted on Form 5329 and, unless the distribution cluding how to figure your required minimum contributions or rolled over any after-tax

qualifies for an exception to the age 591/2 rule, it distribution each year and how to figure your re- amounts to any of your traditional IRAs, you will be subject to this tax. See Early Distribu- quired distribution if you are a beneficiary of a have a cost basis (investment in the contract)

Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 85 equal to the amount of those contributions. • Making excess contributions. • Coins,



These nondeductible contributions aren't taxed • Taking early distributions. • Alcoholic beverages, and when they are distributed to you. They are a re-Allowing excess amounts to accumulate turn of your investment in your IRA. • • Certain other tangible personal property. (failing to take required distributions). Only the part of the distribution that repre-Exception. Your IRA can invest in one-, sents nondeductible contributions and rolled There are penalties for overstating the one-half-, one-quarter-, or one-tenth-ounce U.S. over after-tax amounts (your cost basis) is tax amount of nondeductible contributions and for gold coins, or one-ounce silver coins minted by free. If nondeductible contributions have been failure to file a Form 8606, if required. the Treasury Department. It can also invest in made or after-tax amounts have been rolled certain platinum coins and certain gold, silver, over to your IRA, distributions consist partly of Prohibited Transactions palladium, and platinum bullion. nondeductible contributions (basis) and partly Generally, a prohibited transaction is any im-of deductible contributions, earnings, and gains proper use of your IRA by you, your beneficiary, (if there are any). Until all of your basis has Excess Contributions or any disqualified person. been distributed, each distribution is partly non-Generally, an excess contribution is the amount taxable and partly taxable. Disqualified persons include your fiduciary contributed to your traditional IRA(s) for the year and members of your family (spouse, ancestor, that is more than the smaller of: Form 8606. You must complete Form 8606 lineal descendent, and any spouse of a lineal and attach it to your return if you receive a distri-• The maximum deductible amount for the descendent). bution from a traditional IRA and have ever year (for 2025, this is $7,000 ($8,000 if you The following are examples of prohibited made nondeductible contributions or rolled over are 50 or older)); or transactions with an IRA. after-tax amounts to any of your traditional • Your taxable compensation for the year. IRAs. Using the form, you will figure the nontax-• Borrowing money from it; see Pub. 590-B. An excess contribution could be the result of able distributions for 2025 and your total IRA • Selling property to it. basis for 2025 and earlier years. your contribution, your spouse's contribution, • Using it as security for a loan. your employer's contribution, or an improper

Note: If you are required to file Form 8606 • Buying property for personal use (present rollover contribution. If your employer makes

but you aren't required to file an income tax re- or future) with IRA funds. contributions under a SEP arrangement on your

IRS at the time and place you would otherwise Effect on an IRA account. Generally, if you or turn, you must still file Form 8606. Send it to the behalf to a SEP IRA, see chapter 2 of Pub. 560.

file an income tax return. your beneficiary engages in a prohibited trans- Tax on excess contributions. In general, if

action in connection with your IRA account at the excess contributions for a year aren't with-

Distributions reported on Form 1099-R. If any time during the year, the account stops be- drawn by the date your return for the year is due you receive a distribution from your traditional ing an IRA as of the first day of that year. (including extensions), you are subject to a 6%

statement. IRA distributions are shown in boxes Effect on you or your beneficiary. If your ac-IRA, you will receive Form 1099-R, or a similar tax. You must pay the 6% tax each year on ex-

1 and 2a of Form 1099-R. The number or letter count stops being an IRA because you or your cess amounts that remain in your traditional IRA codes in box 7 tell you what type of distribution beneficiary engaged in a prohibited transaction, at the end of your tax year. The tax can't be more than 6% of the combined value of all your



Withholding. Federal income tax is withheld sets to you at their fair market values on the first tional tax is figured on Form 5329. day of the year. If the total of those values is you received from your IRA. the account is treated as distributing all its as- IRAs as of the end of your tax year. The addi-from distributions from traditional IRAs unless more than your basis in the IRA, you will have a Excess contributions withdrawn by due

you choose not to have tax withheld. See chap- taxable gain that is includible in your income. date of return. You won't have to pay the 6%

ter 4. For information on figuring your gain and report- tax if you withdraw an excess contribution made

ing it in income, see Are Distributions Taxable, during a tax year and you also withdraw interest



United States. In general, if you are a U.S. citi- tional taxes. tion. You must complete your withdrawal by the zen or resident alien and your home address is IRA distributions delivered outside the earlier. The distribution may be subject to addi- or other income earned on the excess contribu-outside the United States or its territories, you Taxes on prohibited transactions. If some- ing extensions. date your tax return for that year is due, includ-can't choose exemption from withholding on one other than the owner or beneficiary of a IRA distributions from your traditional IRA. engages in a prohibited transaction, that person How to treat withdrawn contributions. Reporting taxable distributions on your re- may be liable for certain taxes. In general, there Don't include in your gross income an excess

turn. Report fully taxable distributions, includ- is a 15% tax on the amount of the prohibited contribution that you withdraw from your tradi-

ing early distributions, on Form 1040 or transaction and a 100% additional tax if the tional IRA before your tax return is due if both

1040-SR, line 4b (no entry is required on Form transaction isn't corrected. the following conditions are met.

1040 or 1040-SR, line 4a). If only part of the dis- More information. For more information on • No deduction was allowed for the excess tribution is taxable, enter the total amount on prohibited transactions, see What Acts Result in contribution.

Form 1040 or 1040-SR, line 4a, and the taxable Penalties or Additional Taxes? in chapter 1 of • You withdraw the interest or other income part on Form 1040 or 1040-SR, line 4b. Pub. 590-A. earned on the excess contribution.



What Acts Result in Investment in Collectibles You can take into account any loss on the con-

Penalties or Additional tribution while it was in the IRA when figuring

If your IRA invests in collectibles, the amount in- the amount that must be withdrawn. If there was

Taxes? vested is considered distributed to you in the a loss, the net income you must withdraw may

year invested. You may have to pay the 10% ad- be a negative amount.

ditional tax on early distributions, discussed



retirement savings can be offset by additional income. You must include in your gross in- Collectibles. These include: taxes and penalties if you don't follow the rules. The tax advantages of using traditional IRAs for later. How to treat withdrawn interest or other

come the interest or other income that was



ing your IRA funds in prohibited transactions. your return for the year in which the excess con- • Rugs, There are also additional taxes for the following tribution was made. Your withdrawal of interest • There are additions to the regular tax for us- • Artworks, earned on the excess contribution. Report it on



activities. Antiques, or other income may be subject to an additional • • 10% tax on early distributions, discussed later. Metals, Investing in collectibles. Beginning on or after December 29, 2022, •

• Gems, Having unrelated business income; see the 10% additional tax will not apply to your

Pub. 590-B. • Stamps, withdrawal of interest or other income, if

86 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025) withdrawn on or before the due date (including Excess Contributions under What Acts Result in Penalties or Additional Taxes? in chapter 1 of extensions) of the income tax return. See Pub. Penalties or Additional Taxes? in Pub. 590-A. Pub. 590-B. 590-B for more information.



Excess contributions withdrawn after due erly Early Distributions Note: Distributions that are timely and prop- rolled over , as discussed earlier, aren't sub- date of return. In general, you must include all You must include early distributions of taxable ject to either regular income tax or the 10% ad- distributions (withdrawals) from your traditional amounts from your traditional IRA in your gross ditional tax. Certain withdrawals of excess IRA in your gross income. However, if the fol- income. Early distributions are also subject to contributions after the due date of your return lowing conditions are met, you can withdraw ex- the 10% additional tax. See the discussion of are also tax free and therefore not subject to the cess contributions from your IRA and not in- Form 5329 under Reporting Additional Taxes , 10% additional tax. (See Excess contributions clude the amount withdrawn in your gross later, to figure and report the tax. withdrawn after due date of return , earlier.) This income. also applies to transfers incident to divorce , as Early distributions defined. Early distribu- • Total contributions (other than rollover con- discussed earlier. tions are generally amounts distributed from tributions) for 2025 to your IRA weren't your traditional IRA account or annuity before Receivership distributions. Early distribu- more than $7,000 ($8,000 if you are 50 or you are age 59 1 / 2 . tions (with or without your consent) from sav- older). Age 59 1 ings institutions placed in receivership are sub- / 2 rule. Generally, if you are under age • You didn't take a deduction for the excess 59 1 ject to this tax unless one of the exceptions / 2 , you must pay a 10% additional tax on the contribution being withdrawn. listed earlier applies. This is true even if the dis- distribution of any assets (money or other prop- tribution is from a receiver that is a state agency. The withdrawal can take place at any time, even erty) from your traditional IRA. Distributions be-

after the due date, including extensions, for fil- fore you are age 591/2 are called early distribu- Additional 10% tax. The additional tax on ing your tax return for the year. tions. early distributions is 10% of the amount of the Excess contribution deducted in an earlier The 10% additional tax applies to the part of early distribution that you must include in your

year. If you deducted an excess contribution in the distribution that you have to include in gross gross income. This tax is in addition to any reg-

an earlier year for which the total contributions income. It is in addition to any regular income ular income tax resulting from including the dis-

weren't more than the maximum deductible tax on that amount. tribution in income.



amount for that year (see the following table), After age 591/2 and before age 73. After Nondeductible contributions. The tax on you can still remove the excess from your tradi-you reach age 59 1 / 2 early distributions doesn't apply to the part of a , you can receive distribu-tional IRA and not include it in your gross in-distribution that represents a return of your non-tions without having to pay the 10% additional come. To do this, file Form 1040-X for that year tax. Even though you can receive distributions deductible contributions (basis). and don't deduct the excess contribution on the after you reach age 59 1 / 2 , distributions aren't re-More information. For more information on amended return. Generally, you can file an quired until you reach age 73. See When Must early distributions, see What Acts Result in Pen-amended return within 3 years after you filed You Withdraw IRA Assets? (Required Minimum alties or Additional Taxes? in chapter 1 of Pub. your return or 2 years from the time the tax was Distributions) , earlier. 590-B. paid, whichever is later.

Exceptions. There are several exceptions to

Contribution the age 591/2 rule. Even if you receive a distribu- Excess Accumulations



Contribution older at the to pay the 10% additional tax if you are in one of You can't keep amounts in your traditional IRA end of the the following situations. indefinitely. Generally, you must begin receiving limit if 50 or tion before you are age 591/2, you may not have (Insufficient Distributions)

Year(s) limit year • You have unreimbursed medical expenses distributions by April 1 of the year following the



2023 minimum distribution for any year after the year $6,500 $7,500 • The distribution is for the cost of your medi- in which you reach age 73 must be made by 2019 through 2024 that are more than 7.5% of your AGI. year in which you reach age 73. The required $7,000 $8,000

2022 $6,000 $7,000 December 31 of that later year. ment. cal insurance due to a period of unemploy-



Excess due to incorrect rollover informa-2013 through Tax on excess accumulations. If distributions • You are totally and permanently disabled. $5,500 $6,500 2018 are less than the required minimum distribution • You have been certified as having a termi- for the year, you may have to pay a 25% excise 2008 through $5,000 $6,000 nal illness. tax for that year on the amount not distributed 2012 • 2006 or 2007 $4,000 $5,000 You are the beneficiary of a deceased IRA as required. owner. 2005 $4,000 $4,500 The excise tax on distributions that are • 2002 through You are receiving distributions in the form TIP less than the required minimum distri- $3,000 $3,500 2004 of a series of substantially equal periodic bution amount is reduced to 25% for payments. tax years beginning after December 29, 2022. 1997 through $2,000 — Also, there is an additional reduction to 10% for 2001 • The distribution is income on a corrective taxpayers meeting additional requirements. See before 1997 $2,250 — distribution. Pub. 590-B for more information. • The distribution is for your qualified higher education expenses. Request to waive the tax. If the excess accu- tion. If an excess contribution in your traditional mulation is due to reasonable error, and you IRA is the result of a rollover and the excess oc- • You use the distributions to buy, build, or have taken, or are taking, steps to remedy the curred because the information the plan was re- rebuild a first home. insufficient distribution, you can request that the quired to give you was incorrect, you can with- • The distribution is due to an IRS levy of the tax be waived. If you believe you qualify for this draw the excess contribution. The limits IRA. relief, attach a statement of explanation and mentioned above are increased by the amount complete Form 5329 as instructed under of the excess that is due to the incorrect infor- • The distribution is a qualified reservist dis- Waiver of tax for reasonable cause in the In- mation. You will have to amend your return for tribution. structions for Form 5329. the year in which the excess occurred to correct • You are a victim of domestic abuse. the reporting of the rollover amounts in that Exemption from tax. If you are unable to take • The distribution is for eligible emergency year. Don't include in your gross income the required distributions because you have a tradi- personal expenses. part of the excess contribution caused by the in- tional IRA invested in a contract issued by an in- correct information. For more information, see Most of these exceptions are explained under surance company that is in state insurer

Early Distributions under What Acts Result in

Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 87

delinquency proceedings, the 25% excise tax must file Form 5329 to report your addi- and your modified AGI (defined later) is less doesn't apply if the conditions and requirements tional taxes. than:

of Revenue Procedure 92-10 are satisfied. • If you rolled over part or all of a distribution • $246,000 for married filing jointly or qualify-More information. For more information on from a qualified retirement plan or IRA, the ing surviving spouse;



excess accumulations, see What Acts Result in part rolled over isn't subject to the tax on • $165,000 for single, head of household, or Penalties or Additional Taxes? in chapter 1 of early distributions. married filing separately and you didn't live Pub. 590-B. • If you have a qualified disaster distribution. with your spouse at any time during the



Reporting Additional Taxes Roth IRAs year; or • $10,000 for married filing separately and

Generally, you must use Form 5329 to report you lived with your spouse at any time dur-



tions, and excess accumulations. tablish and make nondeductible contributions to You may be eligible to claim a credit for a retirement plan called a Roth IRA. the tax on excess contributions, early distribu- Regardless of your age, you may be able to es- ing the year. Filing a tax return. If you must file an individ- TIP contributions to your Roth IRA. For ual income tax return, complete Form 5329 and Contributions not reported. You don't report more information, see chapter 3 of Pub. attach it to your Form 1040 or 1040-SR. Enter Roth IRA contributions on your return. 590-A. the total additional taxes due on Schedule 2

(Form 1040), line 8. Is there an age limit for contributions? Con- What Is a Roth IRA?

Not filing a tax return. If you don't have to file less of your age. tributions can be made to your Roth IRA regard-a tax return but do have to pay one of the addi- A Roth IRA is an individual retirement plan that, tional taxes mentioned earlier, file the comple- except as explained in this chapter, is subject to Can you contribute to a Roth IRA for your

ted Form 5329 with the IRS at the time and the rules that apply to a traditional IRA (defined spouse? You can contribute to a Roth IRA for place you would have filed your Form 1040 or earlier). It can be either an account or an annu- your spouse provided the contributions satisfy 1040-SR. Be sure to include your address on ity. Individual retirement accounts and annuities the Kay Bailey Hutchison Spousal IRA limit (dis-

page 1 and your signature and date on page 3. are described under How Can a Traditional IRA cussed under How Much Can Be Contributed, For payment options, see the Instructions for Be Opened? in chapter 1 of Pub. 590-A. earlier, under Traditional IRAs), you file jointly,



1040-NR, or go to IRS.gov/Payments to see all must be designated as a Roth IRA when it is Compensation. Compensation includes wa-your payment options. Form 1040 or the Instructions for Form To be a Roth IRA, the account or annuity and your modified AGI is less than $246,000.



Form 5329 not required. You don't have to and other amounts received for providing per- contributions to a Roth IRA. But, if you satisfy use Form 5329 if any of the following situations sonal services. It also includes commissions, the requirements, qualified distributions (dis- exist. self-employment income, nontaxable combat cussed later) are tax free. You can leave opened. Unlike a traditional IRA, you can't deduct ges, salaries, tips, professional fees, bonuses, • Distribution code 1 (early distribution) is pay, military differential pay, taxable alimony and amounts in your Roth IRA as long as you live. separate maintenance payments, and taxable correctly shown in box 7 of all your Forms non-tuition fellowship and stipend payments. 1099-R. If you don't owe any other addi- When Can a Roth IRA Be See What is compensation , earlier, for more tional tax on a distribution, multiply the tax- Opened? able part of the early distribution by 10% information. (0.10) and enter the result on Schedule 2 Modified AGI. Your modified AGI for Roth IRA (Form 1040), line 8. If you don't have to file You can open a Roth IRA at any time. However, purposes is your AGI as shown on your return Form 5329, check the box next to the entry the time for making contributions for any year is with some adjustments. Use Worksheet 9-2 to space after the text “if not required, check

limited. See When Can You Make Contributions determine your modified AGI.

here.” However, if you owe this tax and also under Can You Contribute to a Roth IRA? next. owe any other additional tax on a distribu-

tion, don't enter this 10% additional tax di- Can You Contribute to a

rectly on your Form 1040 or 1040-SR. You Roth IRA?

Generally, you can contribute to a Roth IRA if

you have taxable compensation (defined later)



88 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025)

Worksheet 9-2. Modified AGI for Roth IRA Purposes Keep for Your Records



Use this worksheet to figure your modified AGI for Roth IRA purposes.

 1. Enter your AGI from Form 1040 or 1040-SR, line 11a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

 2. Enter any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth

IRA (included on Form 1040 or 1040-SR, line 4b) and a rollover from a qualified retirement plan to a Roth IRA (included on Form 1040 or 1040-SR, line 5b) . . . . . . . . . . . . . . . . . . . . . . 2.

 3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

 4. Enter any traditional IRA deduction from Schedule 1 (Form 1040), line 20 . . . . . . . . . . . . . . 4.

 5. Enter any student loan interest deduction from Schedule 1 (Form 1040), line 21 . . . . . . . . . 5.

 6. Enter any foreign earned income and/or housing exclusion from Form 2555, line 45 . . . . . . 6.

 7. Enter any foreign housing deduction from Form 2555, line 50 . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Enter any excludable savings bond interest from Form 8815, line 14 . . . . . . . . . . . . . . . . . . 8.

9. Enter any excluded employer-provided adoption benefits from Form 8839, line 30 . . . . . . . . 9.

10. Add the amounts on lines 3 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Enter:

• $246,000 if married filing jointly or qualifying surviving spouse,

• $10,000 if married filing separately and you lived with your

spouse at any time during the year, or

• $165,000 for all others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

Is the amount on line 10 more than the amount on line 11?

If yes, then see the Note below.

If no, then the amount on line 10 is your modified AGI for Roth IRA purposes.

Note: If the amount on line 10 is more than the amount on line 11 and you have other income or loss items, such as social security income or passive activity losses, that are subject to AGI-based phaseouts, you can refigure your AGI solely for the purpose of figuring your modified AGI for Roth IRA purposes. (If you receive social security benefits, use Worksheet 1 in Appendix B of Pub. 590-A to refigure your AGI.) Then, go to line 3 above in this Worksheet 9-2 to refigure your modified AGI. If you don't have other income or loss items subject to AGI-based phaseouts, your modified AGI for Roth IRA purposes is the amount on line 10.



only to Roth IRAs or to both traditional IRAs and tion limit for Roth IRAs is generally the same as • Your taxable compensation minus all con-your limit would be if contributions were made Roth IRAs. tributions (other than employer contribu-only to Roth IRAs, but then reduced by all con-tions under a SEP arrangement or SIMPLE Roth IRAs only. If contributions are made only tributions for the year to all IRAs other than Roth IRA plan) for the year to all IRAs other than to Roth IRAs, your contribution limit is generally IRAs. Employer contributions under a SEP ar-Roth IRAs. the lesser of the following amounts. The contribution limit for Roth IRAs generally tions are made to both Roth IRAs and traditional rangement or SIMPLE IRA plan) for the IRAs established for your benefit, your contribu- year to all IRAs other than Roth IRAs. depends on whether contributions are made How Much Can Be Contributed? Roth IRAs and traditional IRAs. If contribu- employer contributions under a SEP ar-



• $7,000 ($8,000 if you are 50 or older in amount, your contribution limit may be reduced, This means that your contribution limit is 2025), or as explained next under Contribution limit re- generally the lesser of the following amounts. Your taxable compensation. • limit. However, if your modified AGI is above a certain rangement or SIMPLE IRA plan don't affect this

• duced. $7,000 ($8,000 if you are 50 or older in

However, if your modified AGI is above a certain 2025) minus all contributions (other than Contribution limit reduced. If your modified amount, your contribution limit may be reduced, AGI is above a certain amount, your contribu-

as explained later under Contribution limit re- tion limit is gradually reduced. Use Table 9-3 to

duced. determine if this reduction applies to you.



Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 89 Table 9-3. Effect of Modified AGI on Roth IRA Contribution

This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI.

IF you have taxable compensation and AND your modified

your filing status is... AGI is... THEN...

Married filing jointly or less than $236,000 you can contribute up to $7,000 ($8,000 if you are 50 or

Qualifying surviving spouse older in 2025).

at least $236,000 the amount you can contribute is reduced as explained

but less than $246,000 under Contribution limit reduced in chapter 2 of Pub.

590-A.

$246,000 or more you can't contribute to a Roth IRA.

Married filing separately and you lived zero (-0-) you can contribute up to $7,000 ($8,000 if you are 50 or

with your spouse at any time during the year older in 2025).

more than zero (-0-) the amount you can contribute is reduced as explained

but less than $10,000 under Contribution limit reduced in chapter 2 of Pub.

590-A.

$10,000 or more you can't contribute to a Roth IRA.

Single, Head of household, or Married less than $150,000 you can contribute up to $7,000 ($8,000 if you are 50 or

filing separately and you didn't live with older in 2025).

your spouse at any time during the year at least $150,000 the amount you can contribute is reduced as explained

but less than $165,000 under Contribution limit reduced in chapter 2 of Pub.

590-A.

$165,000 or more you can't contribute to a Roth IRA.

Figuring the reduction. If the amount you Withdrawal of excess contributions. For Conversion methods. You can convert

can contribute to your Roth IRA is reduced, see purposes of determining excess contributions, amounts from a traditional IRA to a Roth IRA in Worksheet 2-2 under Can You Contribute to a any contribution that is withdrawn on or before any of the following ways.



Roth IRA? in chapter 2 of Pub. 590-A for how to the due date (including extensions) for filing • Rollover. You can receive a distribution figure the reduction. your tax return for the year is treated as an from a traditional IRA and roll it over (con-amount not contributed. This treatment applies tribute it) to a Roth IRA within 60 days after only if any earnings on the contributions are When Can You Make the distribution. also withdrawn. The earnings are considered to Contributions? have been earned and received in the year the • Trustee-to-trustee transfer. You can di-You can make contributions to a Roth IRA for a excess contribution was made. rect the trustee of the traditional IRA to year at any time during the year or by the due transfer an amount from the traditional IRA Applying excess contributions. If contribu-date of your return for that year (not including to the trustee of the Roth IRA. tions to your Roth IRA for a year were more than extensions). the limit, you can apply the excess contribution • Same trustee transfer. If the trustee of You can make contributions for 2025 by the traditional IRA also maintains the Roth in one year to a later year if the contributions for the due date (not including extensions) TIP IRA, you can direct the trustee to transfer that later year are less than the maximum al-for filing your 2025 tax return. an amount from the traditional IRA to the lowed for that year. Roth IRA.



What if You Contribute Too Much? Can You Move Amounts Same trustee. Conversions made with the same trustee can be made by redesignating the A 6% excise tax applies to any excess contribu-Into a Roth IRA? traditional IRA as a Roth IRA, rather than open-tion to a Roth IRA. ing a new account or issuing a new contract. You may be able to convert amounts from a tra-Excess contributions. These are the contri-ditional, SEP, or SIMPLE IRA into a Roth IRA. Rollover from a qualified retirement plan butions to your Roth IRAs for a year that equal You may be able to roll amounts over from a into a Roth IRA. You can roll over into a Roth the total of: qualified retirement plan to a Roth IRA. You may IRA all or part of an eligible rollover distribution

1. Amounts contributed for the tax year to be able to recharacterize contributions made to you receive from your (or your deceased spou-



erly and timely ferent IRA. You can roll amounts over from a rolled over from a Roth IRA • Employer's qualified pension, profit-shar-designated Roth account or from one Roth IRA or properly your Roth IRAs (other than amounts prop- one IRA as having been made directly to a dif- se's):

IRA to another Roth IRA. or rolled over from a qualified retire- Annuity plan; converted from a traditional ing, or stock bonus plan;

ment plan • , as described later) that are

more than your contribution limit for the Conversions • Tax-sheltered annuity plan (section 403(b) year; plus plan); or You can convert a traditional IRA to a Roth IRA.

2. Any excess contributions for the preceding The conversion is treated as a rollover, regard- • Governmental deferred compensation plan

year, reduced by the total of: less of the conversion method used. Most of the (section 457 plan).



a. Any distributions out of your Roth rules for rollovers, described earlier under Roll- Any amount rolled over is subject to the same over From One IRA Into Another under Tradi-IRAs for the year, plus rules as those for converting a traditional IRA tional IRAs, apply to these rollovers. However, into a Roth IRA. Also, the rollover contribution b. Your contribution limit for the year mi-the 1-year waiting period doesn't apply. must meet the rollover requirements that apply nus your contributions to all your IRAs to the specific type of retirement plan. for the year.



90 Chapter 9 Individual Retirement Arrangements (IRAs) Publication 17 (2025)

Income. You must include in your gross in- only be made to another designated Roth ac- tion from a Roth IRA, you may have to pay the

come distributions from a qualified retirement count or to a Roth IRA. For more information 10% additional tax on early distributions. You plan that you would have had to include in in- about designated Roth accounts, see Designa- must generally pay the 10% additional tax on come if you hadn't rolled them over into a Roth ted Roth accounts under Rollovers in Pub. 575. any amount attributable to the part of the IRA. You don't include in gross income any part amount converted or rolled over (the conversion

of a distribution from a qualified retirement plan or rollover contribution) that you had to include Are Distributions Taxable?

that is a return of basis (after-tax contributions) in income. A separate 5-year period applies to



to the plan that was taxable to you when paid. each conversion and rollover. See Ordering You don't include in your gross income qualified These amounts are normally included in income rules for distributions , later, to determine the distributions or distributions that are a return of on your return for the year of the rollover from amount, if any, of the distribution that is attribut-your regular contributions from your Roth the qualified employer plan to a Roth IRA. able to the part of the conversion or rollover IRA(s). You also don't include distributions from contribution that you had to include in income. If you must include any amount in your your Roth IRA that you roll over tax free into an-other Roth IRA. You may have to include part of gross income, you may have to in-Additional tax on other early distributions. ! other distributions in your income. See CAUTION Ordering crease your withholding or make esti-Unless an exception applies, you must pay the rules for distributions mated tax payments. See Pub. 505, Tax With-, later. 10% additional tax on the taxable part of any

holding and Estimated Tax. distributions that aren't qualified distributions. What are qualified distributions? A qualified See Pub. 590-B for more information. For more information, see Rollover From distribution is any payment or distribution from

Employer's Plan Into a Roth IRA in chapter 2 of your Roth IRA that meets the following require- Ordering rules for distributions. If you re-Pub. 590-A. ments. ceive a distribution from your Roth IRA that isn't



Converting from a SIMPLE IRA. Generally, a qualified distribution, part of it may be taxable. 1. It is made after the 5-year period begin- There is a set order in which contributions (in- you can convert an amount in your SIMPLE IRA ning with the first tax year for which a con- cluding conversion contributions and rollover to a Roth IRA under the same rules explained tribution was made to a Roth IRA set up contributions from qualified retirement plans) earlier under Converting From Any Traditional for your benefit. and earnings are considered to be distributed IRA to a Roth IRA under Traditional IRAs. 2. The payment or distribution is: from your Roth IRA. Regular contributions are However, you can't convert any amount dis- distributed first. See Ordering Rules for Distribu- a. Made on or after the date you reach tributed from the SIMPLE IRA plan during the age 59 1 tions under Are Distributions Taxable? in chap- / 2 , 2-year period beginning on the date you first ter 2 of Pub. 590-B for more information. participated in any SIMPLE IRA plan main- b. Made because you are disabled, tained by your employer. Must you withdraw or use Roth IRA assets? c. Made to a beneficiary or to your es- You aren't required to take distributions from More information. For more detailed informa- tate after your death, or your Roth IRA at any age. The minimum distri- tion on conversions, see Can You Move d. To pay up to $10,000 (lifetime limit) of bution rules that apply to traditional IRAs don't Amounts Into a Roth IRA? in chapter 2 of Pub. certain qualified first-time homebuyer apply to Roth IRAs while the owner is alive. 590-A. amounts. See First home under What However, after the death of a Roth IRA owner, certain distribution rules that apply to traditional Acts Result in Penalties or Additional Rollover From a Roth IRA Taxes? in chapter 1 of Pub. 590-B for IRAs also apply to Roth IRAs.



You can withdraw, tax free, all or part of the as- more information. More information. For more detailed informa-sets from one Roth IRA if you contribute them tion on Roth IRAs, see chapter 2 of Pub. 590-A Additional tax on distributions of conver-within 60 days to another Roth IRA. Most of the and Pub. 590-B. sion and certain rollover contributions rules for rollovers, explained earlier under Roll-within 5-year period. If, within the 5-year pe-over From One IRA Into Another under Tradi-riod starting with the first day of your tax year in tional IRAs, apply to these rollovers. which you convert an amount from a traditional Rollover from designated Roth account. A IRA or roll over an amount from a qualified re-rollover from a designated Roth account can tirement plan to a Roth IRA, you take a distribu-



Publication 17 (2025) Chapter 9 Individual Retirement Arrangements (IRAs) 91 Part Three.





Standard After you have figured your adjusted gross income, you are ready to


subtract the deductions used to figure taxable income. You can subtract

Deduction, either the standard deduction or itemized deductions, and, if you qualify,

the qualified business income deduction. Itemized deductions are

Itemized deductions for certain expenses that are listed on Schedule A (Form 1040).

The three chapters in this part discuss the standard deduction and certain



Deductions, and itemized deductions. See chapter 10 for the factors to consider when deciding whether to take the standard deduction or itemized deductions.



Other The Form 1040 and 1040-SR schedules that are discussed in these chapters are:

Deductions • Schedule 1, Additional Income and Adjustments to Income;

• Schedule 2, Part II, Other Taxes; and

• Schedule 3, Part I, Nonrefundable Credits.



expenses, charitable contributions, and taxes, 526 526 Charitable Contributions



10. on Schedule A (Form 1040). The standard de-duction is higher for taxpayers who: 530 530 Tax Information for Homeowners

• Are 65 or older, or 547 547 Casualties, Disasters, and Thefts



Standard • Are blind. 550 550 Investment Income and Expenses

936 936 Home Mortgage Interest Deduction



Deduction You benefit from the standard deduc-TIP 970 Tax Benefits for Education tion if your standard deduction is more 970

deductions. Form (and Instructions) than the total of your allowable itemized

What's New Schedule A (Form 1040) Schedule A (Form 1040) Itemized Persons not eligible for the standard de- Deductions

duction. Your standard deduction is zero and



Standard deduction increased. The stand- you should itemize any deductions you have if: Standard Deduction ard deduction for taxpayers who don't itemize • Your filing status is married filing sepa-

their deductions on Schedule A (Form 1040) rately, and your spouse itemizes deduc- Amount has increased. The amount of your standard tions on their return;



Tables year because of a change in your annual near the end of this chapter to figure your filing status, whether you are 65 or older or accounting period; or your standard deduction. other factors. Use the 2025 Standard Deduction The standard deduction amount depends on deduction depends on your filing status and • You are filing a tax return for a short tax

blind, and whether another taxpayer can claim

Enhanced deduction for seniors. Beginning • You are a nonresident or dual-status alien you as a dependent. Generally, the standard

in 2025, taxpayers who are age 65 or older may during the year. You are considered a deduction amounts are adjusted each year for

be eligible for the enhanced deduction for se- dual-status alien if you were both a nonres- inflation. The standard deduction amounts for

ident and resident alien during the year. most people are shown in Table 10-1.

niors. The maximum amount of the deduction is

$6,000 per person. See Schedule 1-A (Form If you are a nonresident alien who is married Decedent's final return. The standard deduc-1040) and the Instructions for Form 1040 for to a U.S. citizen or resident alien at the end of tion for a decedent's final tax return is the same more information. the year, you can choose to be treated as a U.S. as it would have been had the decedent contin-

resident. (See Pub. 519.) If you make this ued to live. However, if the decedent wasn't 65

Introduction choice, you can take the standard deduction. or older at the time of death, the higher stand-

If you can be claimed as a dependent ard deduction for age can't be claimed.



This chapter discusses the following topics. ! on another person’s return (such as your parents’ return), your standard de-CAUTION Higher Standard • How to figure the amount of your standard duction may be limited. See Standard Deduc-deduction. Deduction for Age (65 or tion for Dependents , later. Older) • The standard deduction for dependents.

• Who should itemize deductions. Useful Items If you are age 65 or older on the last day of the

Most taxpayers have a choice of either tak- You may want to see: year and don't itemize deductions, you are enti-

ing a standard deduction or itemizing their de- tled to a higher standard deduction. You are

ductions. If you have a choice, you can use the Publication considered 65 on the day before your 65th birth-method that gives you the lower tax. day. Therefore, you can take a higher standard

The standard deduction is a dollar amount 501 501 Dependents, Standard Deduction, deduction for 2025 if you were born before Jan-

that reduces your taxable income. It is a benefit and Filing Information uary 2, 1961.

that eliminates the need for many taxpayers to Use Table 10-2 to figure the standard de-itemize actual deductions, such as medical 502 502 Medical and Dental Expenses duction amount.

92 Chapter 10 Standard Deduction Publication 17 (2025)

Death of a taxpayer. If you are preparing a re- itemized deductions and use Table 10-3 to find Higher Standard

turn for someone who died in 2025, read this your standard deduction. You enter $150 Deduction for Net Disaster

before using Table 10-2 or Table 10-3. Consider (earned income) on line 1, $600 ($150 + $450) Loss

the taxpayer to be 65 or older at the end of 2025 on line 3, $1,350 (the larger of $600 and

only if they were 65 or older at the time of death. $1,350) on line 5, and $15,750 on line 6. Your

Even if the taxpayer was born before January 2, Your standard deduction may be increased by standard deduction, on line 7a, is $1,350 (the 1961, they are not considered 65 or older at the any net qualified disaster loss. smaller of $1,350 and $15,750). end of 2025 unless they were 65 or older at the See the Instructions for Form 1040 and the time of death. Example 2. You are a 22-year-old college Instructions for Schedule A (Form 1040) for

A person is considered to reach age 65 on student and can be claimed as a dependent on more information on how to figure your in-

the day before their 65th birthday. your parents' 2025 tax return. You are married creased standard deduction and how to report it

on Form 1040 or 1040-SR. filing a separate return. Your spouse doesn't

Higher Standard itemize deductions. You have $1,500 in interest

Deduction for Blindness Examples income and wages of $3,800 and no itemized

deductions. You find your standard deduction

by using Table 10-3. You enter earned income,

If you are blind on the last day of the year and The following examples illustrate how to deter- $3,800, on line 1. You add lines 1 and 2 and en-

you don't itemize deductions, you are entitled to mine your standard deduction using Tables ter $4,250 ($3,800 + $450) on line 3. On line 5,

a higher standard deduction. 10-1 and 10-2. you enter $4,250, the larger of lines 3 and 4.



Not totally blind. If you aren't totally blind, you Because you are married filing a separate re- Example 1. A married couple, 46 and 33 turn, you enter $15,750 on line 6. On line 7a, must get a certified statement from an eye doc- years old, are filing a joint return for 2025. Nei- you enter $4,250 as the standard deduction tor (ophthalmologist or optometrist) that: ther is blind, and neither can be claimed as a amount because it is smaller than $15,750, the dependent. They decide not to itemize their de- • You can't see better than 20/200 in the bet- amount on line 6. ductions. They use Table 10-1 . Their standard ter eye with glasses or contact lenses, or deduction is $31,500. Example 3. You are single and can be • Your field of vision is 20 degrees or less. claimed as a dependent on your parents' 2025 Example 2. The facts are the same as in If your eye condition isn't likely to improve tax return. You are 18 years old and blind and beyond these limits, the statement should in- Example 1, except that one of the spouses is have interest income of $1,300, wages of clude this fact. Keep the statement in your re- blind at the end of 2025. They use Table 10-2 . $2,900, and no itemized deductions. You use Their standard deduction is $33,100. cords. Table 10-3 to find the standard deduction If your vision can be corrected beyond these amount. You enter wages of $2,900 on line 1, Example 3. A married couple is filing a joint limits only by contact lenses that you can wear and add lines 1 and 2 and enter $3,350 ($2,900 return for 2025. Both are over age 65. Neither is only briefly because of pain, infection, or ulcers, + $450) on line 3. On line 5, you enter $3,350, blind, and neither can be claimed as a depend- you can take the higher standard deduction for the larger of lines 3 and 4. Because you are sin- ent. If they don't itemize deductions, they use blindness if you otherwise qualify. gle, you enter $15,750 on line 6 and $3,350 on Table 10-2 . Their standard deduction is line 7a. This is the smaller of the amounts on $34,700. Spouse 65 or Older or lines 5 and 6. Because you checked one box in the top part of the worksheet, you enter $2,000 Blind Standard Deduction for on line 7b, then add the amounts on lines 7a and 7b and enter the standard deduction You can take the higher standard deduction if Dependents amount of $5,350 ($3,350 + $2,000) on line 7c. your spouse is age 65 or older or blind and: The standard deduction for an individual who Example 4. You are 18 years old and single • You file a joint return, or can be claimed as a dependent on another per- and can be claimed as a dependent on your pa- • You file a separate return and your spouse son's tax return is generally limited to the rents’ 2025 tax return. You have wages of had no gross income and can't be claimed greater of: $7,000, interest income of $500, a business as a dependent by another taxpayer. loss of $3,000, and no itemized deductions. You • $1,350, or use Table 10-3 to figure the standard deduction Death of a spouse. If your spouse died in • The individual's earned income for the year amount. You enter $4,000 ($7,000 − $3,000) on 2025 before reaching age 65, you can't take a plus $450 (but not more than the regular line 1, and add lines 1 and 2 and enter $4,450 higher standard deduction because of your standard deduction amount, generally ($4,000 + $450) on line 3. On line 5, you enter spouse. Even if your spouse was born before $15,750). $4,450, the larger of lines 3 and 4, and, be- January 2, 1961, your spouse isn't considered cause you are single, $15,750 on line 6. On 65 or older at the end of 2025 unless your However, if the individual is 65 or older or line 7a, you enter $4,450 as the standard de- spouse was 65 or older at the time of death. blind, the standard deduction may be higher. duction amount because it is smaller than A person is considered to reach age 65 on If you (or your spouse, if filing jointly) can be $15,750, the amount on line 6. the day before their 65th birthday. claimed as a dependent on someone else's re- Who Should Itemize turn, use Table 10-3 to determine your standard Example. Your spouse was born on Febru- deduction. ary 14, 1960, and died on February 13, 2025.

Your spouse is considered age 65 at the time of Earned income defined. Earned income is You should itemize deductions if your total de-death. However, if your spouse died on Febru- salaries, wages, tips, professional fees, and ductions are more than your standard deduction ary 12, 2025, your spouse isn't considered age other amounts received as pay for work you ac- amount. Also, you should itemize if you don't 65 at the time of death and isn't 65 or older at tually perform. qualify for the standard deduction, as discussed

the end of 2025. earlier under Persons not eligible for the stand-For purposes of the standard deduction,



CAUTION ! duction for an individual other than ble scholarship or fellowship grant. See chap- You should first figure your itemized deduc-ter 1 of Pub. 970 for more information on what yourself and your spouse. tions and compare that amount to your standard You can't claim the higher standard de- ard deduction. earned income also includes any part of a taxa-

qualifies as a scholarship or fellowship grant. deduction to make sure you are using the

Example 1. You are 16 years old and sin- method that gives you the greater benefit.

gle. Your parents can claim you as a dependent

on their 2025 tax return. You have interest in-

come of $780 and wages of $150. You have no

Publication 17 (2025) Chapter 10 Standard Deduction 93

When to itemize. You may benefit from to your Form 1040 or 1040-SR. Enter the U.S. Individual Income Tax Return. See Amen-

itemizing your deductions on Schedule A (Form amount from Schedule A (Form 1040), line 17, ded Returns and Claims for Refund in chapter 1 1040) if you: on Form 1040 or 1040-SR, line 12e. for more information on amended returns.

• Don't qualify for the standard deduction, Electing to itemize for state tax or other Married persons who filed separate re-



• purposes. Even if your itemized deductions turns. You can change methods of taking de- Had large uninsured medical and dental are less than your standard deduction, you can ductions only if you and your spouse both make expenses during the year, elect to itemize deductions on your federal re- the same changes. Both of you must file a con- • Paid interest and taxes on your home, turn rather than taking the standard deduction. sent to assessment for any additional tax either • Had large uninsured casualty or theft los- You may want to do this if, for example, the tax one may owe as a result of the change.

ses, benefit of itemizing your deductions on your You and your spouse can use the method



These deductions are explained in • state tax return is greater than the tax benefit that gives you the lower total tax, even though Made large contributions to qualified chari- you lose on your federal return by not taking the one of you may pay more tax than you would ties, or standard deduction. To make this election, you have paid by using the other method. You both • Have total itemized deductions that are must check the box on line 18 of Schedule A must use the same method of claiming deduc- more than the standard deduction to which (Form 1040). tions. If one itemizes deductions, the other you are otherwise entitled. should itemize because they won't qualify for Changing your mind. If you don't itemize your the standard deduction. See Persons not eligi- chapter 11 deductions and later find that you should have and in the publications listed under Useful ble for the standard deduction , earlier. itemized—or if you itemize your deductions and Items, earlier. later find you shouldn't have—you can change If you decide to itemize your deductions, your return by filing Form 1040-X, Amended complete Schedule A (Form 1040) and attach it



94 Chapter 10 Standard Deduction Publication 17 (2025) 2025 Standard Deduction Tables

If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you can't take the standard deduction

CAUTION ! even if you were born before January 2, 1961, or are blind.



Table 10-1. Standard Deduction Chart for Most People*

IF your filing status is... THEN your standard deduction is...

Single or Married filing separately $15,750

Married filing jointly or Qualifying surviving spouse 31,500

Head of household 23,625

* Don't use this chart if you were born before January 2, 1961, are blind, or if someone else can claim you (or your spouse, if filing jointly) as a dependent. Use Table 10-2 or

10-3 instead.

Table 10-2. Standard Deduction Chart for People Born Before January 2, 1961, or Who Are Blind*

Check the correct number of boxes below. Then go to the chart.

You: Born before January 2, 1961 Blind

Your spouse: Born before January 2, 1961 Blind

Total number of boxes checked

IF AND THEN

your filing status is... the number in the box above is... your standard deduction is...

Single 1 $17,750

2  19,750

Married filing jointly 1 $33,100

2 34,700

3 36,300 4 37,900

Qualifying surviving spouse 1 $33,100

2  34,700

Married filing 1 $17,350

separately** 2  18,950

3 20,550 4 22,150

Head of household 1 $25,625

2 27,625

* If someone else can claim you (or your spouse, if filing jointly) as a dependent, use Table 10-3 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 return.

Table 10-3. Standard Deduction Worksheet for Dependents

Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent.

Check the correct number of boxes below. Then go to the worksheet.

You: Born before January 2, 1961 Blind

Your spouse: Born before January 2, 1961 Blind

Total number of boxes checked

1. Enter your earned income (defined below). If none, enter -0-. 1.

2. Additional amount. $450 2.

3. Add lines 1 and 2. 3.

4. Minimum standard deduction. $1,350 4.

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—$15,750 6. • Married filing jointly—$31,500 • Head of household—$23,625

7. Standard deduction.

a. Enter the smaller of line 5 or line 6. If born after January 1, 1961, and not blind, stop here. This is your

standard deduction. Otherwise, go on to line 7b. 7a.

b. If born before January 2, 1961, or blind, multiply $2,000 ($1,600 if married) by the number in the box above. 7b. c. Add lines 7a and 7b. This is your standard deduction for 2025. 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.



Publication 17 (2025) Chapter 10 Standard Deduction 95





General sales taxes. These are taxes im- tion of the contested liability). See Pub. 538 for


posed at one rate on retail sales of a broad details. range of classes of items. If you use an accrual method of accounting,

Foreign taxes. These are taxes imposed by a see Pub. 538 for more information.



11. foreign country or any of its political subdivi- Income Taxes sions.



Taxes Useful Items This section discusses the deductibility of state and local income taxes (including employee You may want to see: contributions to state benefit funds) and foreign

income taxes.

Publication



What’s New 502 502 Medical and Dental Expenses State and Local Income

503 503 Child and Dependent Care Expenses Taxes



state and local income, sales, and property 514 Exception. You can’t deduct state and local in-Foreign Tax Credit for Individuals taxes has increased to $40,000 ($20,000 if mar- 525 525 Taxable and Nontaxable Income come taxes you pay on income that is exempt ried filing separately). See creased. The overall limit on the deduction for You can deduct state and local income taxes. 514 State and local tax deduction limit in- 504 504 Divorced or Separated Individuals

tion for state and local taxes Limitation on deduc- from federal income tax, unless the exempt in- 530 , later. 530 Tax Information for Homeowners come is interest income. For example, you can’t



Reminder Form (and Instructions) deduct the part of a state's income tax that is on

a cost-of-living allowance exempt from federal

Schedule A (Form 1040) Schedule A (Form 1040) Itemized income tax.

Deductions



No deduction for foreign taxes paid for real Schedule C (Form 1040) estate. You can no longer deduct foreign taxes Schedule C (Form 1040) Profit or Loss What To Deduct From Business (Sole Proprietorship) Your deduction may be for withheld taxes, esti-you paid on real estate. Schedule E (Form 1040) Schedule E (Form 1040) Supplemental mated tax payments, or other tax payments as follows. Income and Loss Introduction Schedule F (Form 1040) Schedule F (Form 1040) Profit or Loss Withheld taxes. You can deduct state and lo-From Farming cal income taxes withheld from your salary in This chapter discusses which taxes you can de-the year they are withheld. Your Form(s) W-2 duct if you itemize deductions on Schedule A Schedule SE (Form 1040) Schedule SE (Form 1040) will show these amounts. Forms W-2G, 1099-B, (Form 1040). It also explains which taxes you Self-Employment Tax 1099-DIV, 1099-G, 1099-K, 1099-MISC, can deduct on other schedules or forms and 1099-NEC, 1099-OID, and 1099-R may also 1116 which taxes you can’t deduct. 1116 Foreign Tax Credit show state and local income taxes withheld. This chapter covers the following topics. For these and other useful items, go to IRS.gov/ Estimated tax payments. You can deduct es-Forms . • Income taxes (federal, state, local, and for-timated tax payments you made during the year eign). to a state or local government. However, you • General sales taxes (state and local). Tests To Deduct Any must have a reasonable basis for making the Tax • Real estate taxes (state, local, and for-estimated tax payments. Any estimated state or local tax payments that aren’t made in good eign). faith at the time of payment aren’t deductible. The following two tests must be met for you to • Personal property taxes (state and local). deduct any tax. Example. You made an estimated state in-• Taxes and fees you can’t deduct. • The tax must be imposed on you. come tax payment. However, the estimate of Use Table 11-1 as a guide to determine your state tax liability shows that you will get a • You must pay the tax during your tax year. which taxes you can deduct. refund of the full amount of your estimated pay-The end of the chapter contains a section The tax must be imposed on you. In gen-ment. You had no reasonable basis to believe that explains which forms you use to deduct dif-eral, you can deduct only taxes imposed on you had any additional liability for state income ferent types of taxes. you. taxes and you can’t deduct the estimated tax



Business taxes. You can deduct certain taxes Generally, you can deduct property taxes payment. only if you are an owner of the property. If your only if they are ordinary and necessary expen-Refund applied to taxes. You can deduct any spouse owns the property and pays the real es-ses of your trade or business or of producing in-part of a refund of prior-year state or local in-tate taxes, the taxes are deductible on your come. For information on these taxes, see come taxes that you chose to have credited to spouse's separate return or on your joint return. chapter 8, Business Expenses in Pub. 334. your 2025 estimated state or local income



State or local taxes. These are taxes imposed You must pay the tax during your tax year. taxes. If you are a cash-basis taxpayer, you can de-Don’t reduce your deduction by either of the by the 50 states, U.S. territories, or any of their duct only those taxes you actually paid during following items. political subdivisions (such as a county or city), your tax year. If you pay your taxes by check or by the District of Columbia. • Any state or local income tax refund (or and the check is honored by your financial insti-credit) you expect to receive for 2025. tution, the day you mail or deliver the check is Indian tribal government. An Indian tribal the date of payment. If you use a pay-by-phone • Any refund of (or credit for) prior-year state government recognized by the Secretary of the account (such as a credit card or electronic and local income taxes you actually re-Treasury as performing substantial government funds withdrawal), the date reported on the ceived in 2025. functions will be treated as a state for purposes statement of the financial institution showing of claiming a deduction for taxes. Income taxes, However, part or all of this refund (or credit) when payment was made is the date of pay-real estate taxes, and personal property taxes may be taxable. See Refund (or credit) of state ment. If you contest a tax liability and are a imposed by that Indian tribal government (or by or local income taxes , later. cash-basis taxpayer, you can deduct the tax any of its subdivisions that are treated as politi-only in the year you actually pay it (or transfer Separate federal returns. If you and your cal subdivisions of a state) are deductible. money or other property to provide for satisfac-spouse file separate state, local, and federal

96 Chapter 11 Taxes Publication 17 (2025) income tax returns, each of you can deduct on sion of how much to include, see Recoveries in income plus any nontaxable items such as the your federal return only the amount of your own Pub. 525 for more information. following.



state and local income tax that you paid during • Tax-exempt interest. the tax year. Foreign Income Taxes • Veterans’ benefits. Joint state and local returns. If you and • Nontaxable combat pay. your spouse file joint state and local returns and Generally, you can take either a deduction or a separate federal returns, each of you can de-credit for income taxes imposed on you by a for-• Workers’ compensation. duct on your separate federal return a part of eign country or a U.S. territory. However, you • Nontaxable part of social security and rail-the state and local income taxes paid during the can’t take a deduction or credit for foreign in-road retirement benefits. tax year. You can deduct only the amount of the come taxes paid on income that is exempt from total taxes that is proportionate to your gross in-U.S. tax under the foreign earned income exclu-• Nontaxable part of IRA, pension, or annuity come compared to the combined gross income sion or the foreign housing exclusion. For infor-distributions, excluding rollovers. of you and your spouse. However, you can’t de-mation on these exclusions, see Pub. 54, Tax • Public assistance payments. duct more than the amount you actually paid Guide for U.S. Citizens and Resident Aliens during the year. You can avoid this calculation if If you lived in different states during the Abroad. For information on the foreign tax you and your spouse are jointly and individually same tax year, you must prorate your applicable credit, see Pub. 514. liable for the full amount of the state and local table amount for each state based on the days you lived in each state. See the instructions for income taxes. If so, you and your spouse can State and Local deduct on your separate federal returns the Schedule A (Form 1040), line 5a, for details. General Sales Taxes amount you each actually paid. State and Local Real Joint federal return. If you file a joint federal You can elect to deduct state and local general return, you can deduct the state and local in-sales taxes, instead of state and local income Estate Taxes come taxes both of you paid. taxes, as an itemized deduction on Schedule A Contributions to state benefit funds. As an Deductible real estate taxes are any state and (Form 1040), line 5a. You can use either your employee, you can deduct mandatory contribu-local taxes on real property levied for the gen-actual expenses or the state and local sales tax tions to state benefit funds withheld from your eral public welfare. You can deduct these taxes tables to figure your sales tax deduction. wages that provide protection against loss of only if they are assessed uniformly against all Actual expenses. Generally, you can deduct wages. For example, certain states require em-property under the jurisdiction of the taxing au-the actual state and local general sales taxes ployees to make contributions to state funds thority. The proceeds must be for general com-(including compensating use taxes) if the tax providing disability or unemployment insurance munity or governmental purposes and not be a rate was the same as the general sales tax rate. benefits. Mandatory payments made to the fol-payment for a special privilege granted or serv-ice rendered to you. lowing state benefit funds are deductible as Food, clothing, and medical supplies. state income taxes on Schedule A (Form 1040), Sales taxes on food, clothing, and medical sup-Deductible real estate taxes generally don’t line 5a. plies are deductible as a general sales tax even include taxes charged for local benefits and im-• Alaska Unemployment Compensation if the tax rate was less than the general sales provements that increase the value of the prop-Fund. erty. They also don’t include itemized charges tax rate. for services (such as trash collection) assessed • California Nonoccupational Disability Ben-Motor vehicles. Sales taxes on motor vehi-efit Fund. against specific property or certain people, even cles are deductible as a general sales tax even if the charge is paid to the taxing authority. For • New Jersey Nonoccupational Disability more information about taxes and charges that if the tax rate was less than the general sales Benefit Fund. tax rate. However, if you paid sales tax on a mo-aren’t deductible, see Real Estate-Related • New Jersey Unemployment Compensation tor vehicle at a rate higher than the general Items You Can’t Deduct , later.



• Fund. sales tax, you can deduct only the amount of Tenant-shareholders in a cooperative hous-the tax that you would have paid at the general New York Nonoccupational Disability Ben-ing corporation. Generally, if you are a ten-sales tax rate on that vehicle. Include any state efit Fund. ant-stockholder in a cooperative housing corpo-and local general sales taxes paid for a leased ration, you can deduct the amount paid to the • Pennsylvania Unemployment Compensa-motor vehicle. For purposes of this section, mo-corporation that represents your share of the tion Fund. tor vehicles include cars, motorcycles, motor real estate taxes the corporation paid or incur-homes, recreational vehicles, sport utility vehi-• Rhode Island Temporary Disability Benefit red for your dwelling unit. The corporation cles, trucks, vans, and off-road vehicles. Fund. should provide you with a statement showing



CAUTION • your share of the taxes. For more information, Washington State Supplemental Work- Trade or business items. Don't include see Special Rules for Cooperatives in Pub. 530. men's Compensation Fund. sales taxes paid on items used in your trade or Division of real estate taxes between buy- Employee contributions to private or business on Schedule A (Form 1040). Instead, go to the instructions for the form you are using ers and sellers. If you bought or sold real es- ! voluntary disability plans aren’t deduc- tible. to report business income and expenses to see tate during the year, the real estate taxes must if you can deduct these taxes. be divided between the buyer and the seller.



Refund (or credit) of state or local income The buyer and the seller must divide the real If you use the actual expenses method, taxes. If you receive a refund of (or credit for) estate taxes according to the number of days in you must have receipts to show the state or local income taxes in a year after the ! the real property tax year (the period to which CAUTION general sales taxes paid. year in which you paid them, you may have to the tax is imposed relates) that each owned the property. The seller is treated as paying the include the refund in income on Schedule 1 Optional sales tax tables. Instead of using (Form 1040), line 1, in the year you receive it. taxes up to, but not including, the date of sale. your actual expenses, you can figure your state This includes refunds resulting from taxes that The buyer is treated as paying the taxes begin- and local general sales tax deduction using the were overwithheld, applied from a prior-year re- ning with the date of sale. This applies regard- state and local sales tax tables in the Instruc- turn, not figured correctly, or figured again be- less of the lien dates under local law. Generally, tions for Schedule A (Form 1040). You may also cause of an amended return. If you didn’t item- this information is included on the settlement be able to add the state and local general sales ize your deductions in the previous year, don’t statement provided at the closing. taxes paid on certain specified items. include the refund in income. If you deducted If you (the seller) can’t deduct taxes until Your applicable table amount is based on the taxes in the previous year, include all or part they are paid because you use the cash method the state where you live, your income, and your of the refund on Schedule 1 (Form 1040), line 1, of accounting, and the buyer of your property is family size. Your income is your adjusted gross in the year you receive the refund. For a discus- personally liable for the tax, you are considered

Publication 17 (2025) Chapter 11 Taxes 97 the sale. This lets you deduct the part of the tax State and Local Real Estate Tax State and Local Real Estate Tax to the date of sale even though you didn’t ac-Deduction—Taxes on Old Home to have paid your part of the tax at the time of Worksheet 11-1. Figuring Your Worksheet 11-1. Figuring Your tually pay it. However, you must also include the Deduction—Taxes on New Home



amount of that tax in the selling price of the 1. Enter the total state and local real estate 1. Enter the total state and local real estate property. The buyer must include the same taxes for the real property tax year . . . $620 $752 taxes for the real property tax year . . . amount in the cost of the property. 2. Enter the number of days in the real 2. Enter the number of days in the real You figure your deduction for taxes on each property tax year that you owned the property tax year that you owned the property bought or sold during the real property property . . . . . . . . . . . . . . . . 126 property . . . . . . . . . . . . . . . . 243 tax year as follows. 3. Divide line 2 by 365 (for leap years, 3. Divide line 2 by 365 (for leap years, 0.3452 divide line 2 by 366) . . . . . . . . . . divide line 2 by 366) . . . . . . . . . . 0.6658 Worksheet 11-1. Figuring 4. Multiply line 1 by line 3. This is your 4. Multiply line 1 by line 3. This is your Your State and Local Real deduction. Enter it on Schedule A (Form deduction. Claim it on Schedule A Estate Tax Deduction $214 1040), line 5b . . . . . . . . . . . . . $501 (Form 1040), line 5b . . . . . . . . . . Keep for Your Records Because the buyers of their old home paid all of The remaining $251 ($752 paid less $501 de-



1. Enter the total state and local real estate the taxes, Porter and Riley also include the duction) of taxes paid in 2026, along with the taxes for the real property tax $214 in the selling price of the old home. (The $680 paid in 2025, is added to the cost of their year . . . . . . . . . . . . . . . . . . . . buyers add the $214 to their cost of the home.) new home. 2. Enter the number of days in the real property tax year that you owned the Porter and Riley owned their new home dur-Because the taxes up to the date of sale are property . . . . . . . . . . . . . . . . . ing the real property tax year for 243 days (May considered paid by the seller on the date of

3. Divide line 2 by 365 (for leap years, 3 to December 31, including their date of pur- sale, the seller is entitled to a 2025 tax deduc-.     divide line 2 by 366) . . . . . . . . . . . chase). They figure their deduction for taxes on tion of $931. This is the sum of the $680 for



vide delinquent taxes between the buyer and 4. Multiply line 1 by line 3. This is your their new home as follows. 2024 and the $251 for the 122 days the seller deduction. Enter it on Schedule A (Form 1040), line 5b . . . . . . . . . . . . . . owned the home in 2025. The seller must also include the $931 in the selling price when they Note: Repeat steps 1 through 4 for each property you bought Worksheet 11-1. Figuring Your figure the gain or loss on the sale. The seller or sold during the real property tax year. Your total deduction is State and Local Real Estate Tax the sum of the line 4 amounts for all of the properties. should contact the Browns in January 2026 to Deduction—Taxes on New Home find out how much real estate tax is due for Real estate taxes for prior years. Don’t di-2025. 1. Enter the total state and local real estate taxes for the real property tax year . . . $732 seller if the taxes are for any real property tax Form 1099-S. For certain sales or ex-year before the one in which the property is 2. Enter the number of days in the real changes of real estate, the person responsible sold. Even if the buyer agrees to pay the delin-property tax year that you owned the for closing the sale (generally, the settlement property . . . . . . . . . . . . . . . . 243 quent taxes, the buyer can’t deduct them. The agent) prepares Form 1099-S, Proceeds From buyer must add them to the cost of the property. 3. Divide line 2 by 365 (for leap years, Real Estate Transactions, to report certain infor-The seller can deduct these taxes paid by the 0.6658 divide line 2 by 366) . . . . . . . . . . mation to the IRS and to the seller of the prop-buyer. However, the seller must include them in 4. Multiply line 1 by line 3. This is your erty. Box 2 of Form 1099-S is for the gross pro-the selling price. deduction. Enter it on Schedule A (Form ceeds from the sale and should include the $487 1040), line 5b Examples. The following examples illustrate . . . . . . . . . . . . . portion of the seller's real estate tax liability that the buyer will pay after the date of sale. The how real estate taxes are divided between Because Porter and Riley paid all of the taxes buyer includes these taxes in the cost basis of buyer and seller. on the new home, they add $245 ($732 paid the property, and the seller both deducts this less $487 deduction) to their cost of the new Example 1. Porter and Riley White's real amount as a tax paid and includes it in the sales home. (The sellers add this $245 to their selling property tax year for both their old home and price of the property. price and deduct the $245 as a real estate tax.) their new home is the calendar year, with pay-For a real estate transaction that involves a Porter and Riley's real estate tax deduction ment due August 1. The tax on their old home, home, any real estate tax the seller paid in ad-for their old and new homes is the sum of $214 sold on May 7, was $620. The tax on their new vance but that is the liability of the buyer ap-and $487, or $701. They will enter this amount home, bought on May 3, was $732. Porter and pears in box 6 of Form 1099-S. The buyer de-on Schedule A (Form 1040), line 5b. Riley are considered to have paid a proportion-ducts this amount as a real estate tax, and the seller reduces their real estate tax deduction (or ate share of the real estate taxes on the old Example 2. Reese and Quin Brown bought home even though they didn’t actually pay them includes it in income) by the same amount. See a new home on May 3, 2025. Their real property to the taxing authority. On the other hand, they Refund (or rebate) , later. tax year for the new home is the calendar year. can claim only a proportionate share of the Real estate taxes for 2024 were assessed in Taxes placed in escrow. If your monthly mort-taxes they paid on their new property even their state on January 1, 2025. The taxes be-gage payment includes an amount placed in es-though they paid the entire amount. came due on May 31, 2025, and October 31, crow (put in the care of a third party) for real es-Porter and Riley owned their old home dur-2025. tate taxes, you may not be able to deduct the ing the real property tax year for 126 days (Jan-The Browns agreed to pay all taxes due after total amount placed in escrow. You can deduct uary 1 to May 6, the day before the sale). They the date of purchase. Real estate taxes for 2024 only the real estate tax that the third party ac-figure their deduction for taxes on their old were $680. They paid $340 on May 31, 2025, tually paid to the taxing authority. If the third home as follows. and $340 on October 31, 2025. These taxes party doesn’t notify you of the amount of real estate tax that was paid for you, contact the were for the 2024 real property tax year. The third party or the taxing authority to find the Browns can’t deduct them because they didn’t proper amount to show on your return. own the property until 2025. Instead, they must



add $680 to the cost of their new home. Tenants by the entirety. If you and your In January 2026, the Browns receive their spouse held property as tenants by the entirety 2025 property tax statement for $752, which and you file separate federal returns, each of they will pay in 2026. The Browns owned their you can deduct only the taxes each of you paid new home during the 2025 real property tax on the property. year for 243 days (May 3 to December 31). Divorced individuals. If your divorce or sepa- They will figure their 2026 deduction for taxes ration agreement states that you must pay the as follows. real estate taxes for a home owned by you and

98 Chapter 11 Taxes Publication 17 (2025) Table 11-1. Which Taxes Can You Deduct?

Type of tax You can deduct You can’t deduct

Fees and charges Fees and charges that are expenses of your trade or Fees and charges that aren’t expenses of your trade or

business or of producing income. business or of producing income, such as fees for

driver's licenses, car inspections, parking, or

charges for water bills (see Taxes and Fees You

Can’t Deduct).

Fines and penalties.

Income taxes State and local income taxes. Federal income taxes.

Foreign income taxes. Employee contributions to private or voluntary

disability plans.

Employee contributions to state funds listed under State and local general sales taxes if you choose to

Contributions to state benefit funds. deduct state and local income taxes.

General sales taxes State and local general sales taxes, including State and local income taxes if you choose to deduct

compensating use taxes. state and local general sales taxes.

Other taxes Taxes that are expenses of your trade or business. Federal excise taxes, such as tax on gasoline, that

aren’t expenses of your trade or business or of

producing income.

Taxes on property producing rent or royalty income. Per capita taxes.

One-half of self-employment tax paid.

Personal property State and local personal property taxes. Customs duties that aren’t expenses of your trade or

taxes business or of producing income.

Real estate taxes State and local real estate taxes. Real estate taxes that are treated as imposed on

someone else (see Division of real estate taxes

between buyers and sellers).

Tenant's share of real estate taxes paid by a Foreign real estate taxes.

cooperative housing corporation.

Taxes for local benefits (with exceptions). See Real

Estate-Related Items You Can’t Deduct.

Trash and garbage pickup fees (with exceptions). See

Real Estate-Related Items You Can’t Deduct.

Rent increase due to higher real estate taxes.

Homeowners' association charges.



your spouse, part of your payments may be de- of that part to claim the deduction. If you can’t Real Estate-Related Items

ductible as alimony and part as real estate determine what part of the tax is for mainte- You Can’t Deduct

taxes. See Payments to a third party in Pub. 504 nance, repair, or interest, none of it is deducti-

for more information. ble.

Payments for the following items generally

Ministers’ and military housing allowances. aren’t deductible as real estate taxes. Taxes for local benefits may be inclu-



If you are a minister or a member of the uni- ded in your real estate tax bill. If your • Taxes for local benefits. ! formed services and receive a housing allow- CAUTION taxing authority (or mortgage lender) • ance that you can exclude from income, you Itemized charges for services (such as doesn’t furnish you a copy of your real estate trash and garbage pickup fees). can still deduct all of the real estate taxes you tax bill, ask for it. You should use the rules



rebate in 2025 of real estate taxes you paid in taxes. charge on your real estate tax bill. 2025, you must reduce your deduction by the • Homeowners' association charges. amount refunded to you. If you received a re-Itemized charges for services. An itemized fund or rebate in 2025 of real estate taxes you Taxes for local benefits. Deductible real es-charge for services assessed against specific deducted in an earlier year, you must generally Refund (or rebate). If you received a refund or ductible. Contact the taxing authority if you • Rent increases due to higher real estate need additional information about a specific pay on your home. above to determine if the local benefit tax is de- • Transfer taxes (or stamp taxes).



include the refund or rebate in income in the tate taxes generally don’t include taxes charged property or certain people isn’t a tax, even if the for local benefits and improvements tending to charge is paid to the taxing authority. For exam- year you receive it. However, the amount you in- increase the value of your property. These in- ple, you can’t deduct the charge as a real estate clude in income is limited to the amount of the clude assessments for streets, sidewalks, water tax if it is: deduction that reduced your tax in the earlier mains, sewer lines, public parking facilities, and • year. For more information, see Recoveries in similar improvements. You should increase the A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons Pub. 525. basis of your property by the amount of the as- of water you use), sessment.

Local benefit taxes are deductible only if • A periodic charge for a residential service

they are for maintenance, repair, or interest (such as a $20 per month or $240 annual

charges related to those benefits. If only a part fee charged to each homeowner for trash

of the taxes is for maintenance, repair, or collection), or interest, you must be able to show the amount

Publication 17 (2025) Chapter 11 Taxes 99

• A flat fee charged for a single service pro- your car. You can deduct $15 (1% × $1,500) as filing separately). The overall limit is reduced if

vided by your government (such as a $30 a personal property tax because it is based on your modified adjusted gross income is more charge for mowing your lawn because it the value. The remaining $17 ($0.50 × 34), than $500,000 ($250,000 if married filing sepa-was allowed to grow higher than permitted based on the weight, isn’t deductible. rately) but will not be reduced below $10,000



above, are included in the bill. If your taxing au-CAUTION ! to determine if any nondeductible item-ized charges, such as those listed Can’t Deduct 5b, and 5c. Include taxes imposed by a U.S. ter-ritory with your state and local taxes on Sched-Many federal, state, and local government taxes ule A (Form 1040), lines 5a, 5b, and 5c. How-thority (or mortgage lender) doesn’t furnish you aren’t deductible because they don’t fall within ever, don't include any U.S. territory taxes you a copy of your real estate tax bill, ask for it. under your local ordinance). ($5,000 if married filing separately). You must look at your real estate tax bill include on Schedule A (Form 1040), lines 5a, State and local taxes are the taxes that you Taxes and Fees You

the categories discussed earlier. Other taxes paid that are allocable to excluded income.



tain or improve services (such as trash collec-Exception. Service charges used to main- and fees, such as federal income taxes, aren’t You may want to take a credit for U.S. deductible because the tax law specifically pro- TIP territory tax instead of a deduction. See hibits a deduction for them. See Table 11-1 . tion or police and fire protection) are deductible the instructions for Schedule 3 (Form 1040), line 1, for details. as real estate taxes if: Taxes and fees that are generally not deduc-



Transfer taxes (or stamp taxes). Transfer • tible include the following items. The fees or charges are imposed at a like General sales taxes. Sales taxes are deduc-rate against all property in the taxing juris-• Employment taxes. This includes social ted on Schedule A (Form 1040), line 5a. You diction; security, Medicare, and railroad retirement must check the box on line 5a. If you elect to taxes withheld from your pay. However, • The funds collected aren’t earmarked; in-deduct sales taxes, you can’t deduct state and one-half of self-employment tax you pay is stead, they are commingled with general local income taxes on Schedule A (Form 1040), deductible. In addition, the social security revenue funds; and line 5a. and other employment taxes you pay on • Funds used to maintain or improve serv-Foreign income taxes. Generally, income the wages of a household worker may be ices aren’t limited to or determined by the taxes you pay to a foreign country or U.S. terri-included in medical expenses that you can amount of these fees or charges collected. tory can be claimed as an itemized deduction deduct, or childcare expenses that allow on Schedule A (Form 1040), line 6, or as a you to claim the child and dependent care credit against your U.S. income tax on Schedule credit. For more information, see Pub. 502 taxes and similar taxes and charges on the sale 3 (Form 1040), line 1. To claim the credit, you and Pub. 503. of a personal home aren’t deductible. If they are may have to complete and attach Form 1116. paid by the seller, they are expenses of the sale • Estate, inheritance, legacy, or succes-For more information, see the Instructions for and reduce the amount realized on the sale. If sion taxes. You can deduct the estate tax Form 1040 or Pub. 514. paid by the buyer, they are included in the cost attributable to income in respect of a dece-basis of the property. dent if you, as a beneficiary, must include Real estate taxes and personal property taxes. Real estate and personal property taxes that income in your gross income. In that Rent increase due to higher real estate case, deduct the estate tax on Schedule A are deducted on Schedule A (Form 1040), lines taxes. If your landlord increases your rent in (Form 1040), line 16. For more information, 5b and 5c, respectively, unless they are paid on the form of a tax surcharge because of in-see Pub. 559. property used in your business, in which case creased real estate taxes, you can’t deduct the they are deducted on Schedule C (Form 1040) increase as taxes. • Federal income taxes. This includes in-or Schedule F (Form 1040). Taxes on property come taxes withheld from your pay. Homeowners' association charges. These that produces rent or royalty income are deduc-• charges aren’t deductible because they are im-Fines and penalties. You can’t deduct ted on Schedule E (Form 1040). fines and penalties paid to a government posed by the homeowners' association, rather Self-employment tax. Deduct one-half of your than the state or local government. for violation of any law, including related self-employment tax on Schedule 1 (Form amounts forfeited as collateral deposits. 1040), line 15. Personal Property • Foreign personal or real property Other taxes. All other deductible taxes are de-taxes. Taxes ducted on Schedule A (Form 1040), line 6. • Gift taxes.

Personal property tax is deductible if it is a state • License fees. You can’t deduct license or local tax that is: fees for personal purposes (such as mar-

• riage, driver's, and pet license fees). Charged on personal property;

• • Per capita taxes. You can’t deduct state Based only on the value of the personal or local per capita taxes. property; and

• Charged on a yearly basis, even if it is col- Many taxes and fees other than those listed

lected more or less than once a year. above are also nondeductible, unless they are

ordinary and necessary expenses of a business

A tax that meets the above requirements or income-producing activity. For other nonde-

can be considered charged on personal prop- ductible items, see Real Estate-Related Items

erty even if it is for the exercise of a privilege. You Can’t Deduct, earlier.



For example, a yearly tax based on value quali- Where To Deduct fies as a personal property tax even if it is called

a registration fee and is for the privilege of regis-

ways. You deduct taxes on the following schedules. tering motor vehicles or using them on the high-

If the tax is partly based on value and partly are deducted on Schedule A (Form 1040), State and local income taxes. These taxes

based on other criteria, it may qualify in part. line 5a, even if your only source of income is

from business, rents, or royalties.

Example. Your state charges a yearly motor

vehicle registration tax of 1% of value plus 50 Limitation on deduction for state and lo-cents per hundredweight. You paid $32 based cal taxes. The deduction for state and local on the value ($1,500) and weight (3,400 lbs.) of taxes is limited to $40,000 ($20,000 if married

100 Chapter 11 Taxes Publication 17 (2025)





547 547 Casualties, Disasters, and Thefts 3. Had allowable business expenses attribut-




12. able to the performing arts of more than

575 575 Pension and Annuity Income 10% of gross income from the performing

587 arts, and 587 Business Use of Your Home



Other Itemized 946 4. Had AGI of $16,000 or less before deduct- 946 How To Depreciate Property ing expenses as a performing artist.



Deductions cial. You are a qualifying fee-basis official if Schedule A (Form 1040) Schedule A (Form 1040) Itemized you are employed by a state or political subdivi- Deductions Form (and Instructions) Fee-basis state or local government offi-

sion of a state and are compensated, in whole



What’s New 8839 8839 Qualified Adoption Expenses Employee with impairment-related work expenses. Impairment-related work expenses 2106 2106 Employee Business Expenses or in part, on a fee basis.



Standard mileage rate. The 2025 rate for Schedule K-1 (Form 1041) Schedule K-1 (Form 1041) Beneficiary’s are the allowable expenses of an individual with Share of Income, Deductions, physical or mental disabilities for attendant care business use of a vehicle is 70 cents a mile. Credits, etc. at their place of employment. They also include



Reminders For these and other useful items, go to other expenses in connection with the place of IRS.gov/

Forms employment that enable the employee to work. .

See Pub. 463, Travel, Gift, and Car Expenses,

No miscellaneous itemized deductions al-

Miscellaneous for more details.

lowed. You can no longer claim any miscella- Allowable unreimbursed employee expen- Itemized Deductions

neous itemized deductions. Miscellaneous ses. If you qualify as an employee in one of

itemized deductions are those deductions that the categories mentioned above, you may be

would have been subject to the 2%-of-adjus- You can no longer claim any miscellaneous able to deduct the following items as unreim-

ted-gross-income (AGI) limitation. See Miscella- itemized deductions that are subject to the bursed employee expenses.

neous Itemized Deductions 2%-of-AGI limitation, including unreimbursed , later. Unreimbursed employee expenses for indi-Fines and penalties. Rules regarding deduct- employee expenses. However, you may be able viduals in these categories of employment are



Fines and Penalties ness expenses if you fall into one of the follow- Qualified employees listed in one of the catego- , later. ing categories of employment listed under ing fines and penalties have changed. See to deduct certain unreimbursed employee busi- deducted as adjustments to gross income.

Un- ries above must complete Form 2106, Em-

reimbursed Employee Expenses next. ployee Business Expenses, to take the deduc-

You can deduct only unreimbursed em-



This chapter explains that you can no longer ployee expenses that are paid or incurred dur- Expenses ing your tax year, for carrying on your trade or claim any miscellaneous itemized deductions, business of being an employee, and ordinary unless you fall into one of the qualified catego- You can no longer claim a deduction for unreim- and necessary. ries of employment claiming a deduction relat- Introduction tion. Unreimbursed Employee

ing to unreimbursed employee expenses. Mis- An expense is ordinary if it’s common and bursed employee expenses unless you fall into

cellaneous itemized deductions are those accepted in your trade, business, or profession. one of the following categories of employment.

deductions that would have been subject to the • Armed Forces reservists. An expense is necessary if it’s appropriate and



2%-of-AGI limitation. You can still claim certain helpful to your business. An expense doesn’t • Qualified performing artists. have to be required to be considered neces- expenses as itemized deductions on Sched- • Fee-basis state or local government offi- sary. ule A (Form 1040) or Schedule A (Form cials. 1040-NR), or as an adjustment to income on • Form 1040 or 1040-SR. This chapter covers the Employees with impairment-related work Educator Expenses following topics. expenses.



• If you were an eligible educator in 2025, you Miscellaneous itemized deductions. can deduct up to $300 of qualified expenses Categories of Employment • Expenses you can’t deduct. you paid in 2025 as an adjustment to gross in-



• ses only if you qualify as an Armed Forces re- rather than as a miscellaneous itemized deduc- How to report your deductions. tion. If you and your spouse are filing jointly and • come on Schedule 1 (Form 1040), line 11, Expenses you can deduct. You can deduct unreimbursed employee expen-

servist, a qualified performing artist, a fee-basis

You must keep records to verify your both of you were eligible educators, the maxi- state or local government official, or an em-

deductions. You should keep receipts, mum deduction is $600. However, neither ployee with impairment-related work expenses.

RECORDS spouse can deduct more than $300 of their canceled checks, substitute checks, fi-

nancial account statements, and other docu- Armed Forces reservist (member of a re- qualified expenses. For additional information, mentary evidence. For more information on re- serve component). You are a member of a see Educator Expenses in Pub. 529, Miscella-



Keep? United States if you are in the Army, Navy, Ma- in chapter 1. Educator expenses include amounts rine Corps, Air Force, or Coast Guard Reserve; TIP cordkeeping, see reserve component of the Armed Forces of the What Records Should I neous Deductions.



Useful Items the Army National Guard of the United States; paid or incurred in 2025 for personal protective equipment, disinfectant, and or the Reserve Corps of the Public Health Serv- other supplies used for the prevention of the ice. spread of coronavirus. For more information, You may want to see: Qualified performing artist. You are a see the instructions for Schedule 1 (Form

Publication 529, Miscellaneous Deductions. qualified performing artist if you: 1040), line 11, and Educator Expenses in Pub.

1. Performed services in the performing arts

463 463 Travel, Gift, and Car Expenses as an employee for at least two employers

during the tax year,

525 525 Taxable and Nontaxable Income

2. Received from at least two of the employ-

529 529 Miscellaneous Deductions ers wages of $200 or more per employer,

Publication 17 (2025) Chapter 12 Other Itemized Deductions 101

Expenses You Can’t Hobby Expenses Repayments of Social Security Benefits Deduct A hobby isn’t a business because it isn’t carried on to make a profit. Hobby expenses are mis-For information on how to deduct your repay-cellaneous itemized deductions and can no lon-ments of certain social security benefits, see Because of the suspension of miscellaneous ger be deducted. Repayments More Than Gross Benefits in itemized deductions, there are two categories of chapter 7. expenses you can’t deduct: miscellaneous Indirect Deductions of itemized deductions subject to the 2%-of-AGI Pass-Through Entities limitation, and those expenses that are tradition-Safe Deposit Box Rent ally nondeductible under the Internal Revenue Pass-through entities include partnerships, S Rent you pay for a safe deposit box you use to Code. Both categories of deduction are dis-corporations, and mutual funds that aren’t pub-store taxable income-producing stocks, bonds, cussed next. licly offered. Deductions of pass-through enti-or investment-related papers is a miscellaneous

ties are passed through to the partners or itemized deduction and can no longer be de-

Miscellaneous Deductions Subject shareholders. The partner’s or shareholder’s ducted. You also can’t deduct the rent if you use



Unless you fall into one of the qualified catego- ment expenses are miscellaneous itemized de- tax-exempt securities. ductions and can no longer be deducted. ries of employment under to 2% AGI share of passed-through deductions for invest- the box for jewelry, other personal items, or

Unreimbursed Em-

ployee Expenses, earlier, miscellaneous item- Nonpublicly offered mutual funds. These Service Charges on Dividend



ployee expenses, you generally can’t deduct penses. The investment expenses reported on itemized deduction and can no longer be de-the following expenses, even if you fall into one Form 1099-DIV are a miscellaneous itemized ducted. These service charges include pay-of the qualified categories of employment listed deduction and are no longer deductible. ments for: earlier. • Holding shares acquired through a plan, Investment Fees and Expenses Appraisal Fees 2%-of-AGI limitation can no longer be claimed. and Distributions, or a substitute form, showing Service charges you pay as a subscriber in a For expenses not related to unreimbursed em-your share of gross income and investment ex-dividend reinvestment plan are a miscellaneous ized deductions that are subject to the funds will send you a Form 1099-DIV, Dividends Reinvestment Plans Investment fees, custodial fees, trust adminis- • Collecting and reinvesting cash dividends,

Appraisal fees you pay to figure a casualty loss and tration fees, and other expenses you paid for or the fair market value of donated property are managing your investments that produce taxa- • Keeping individual records and providing miscellaneous itemized deductions and can no ble income are miscellaneous itemized deduc- detailed statements of accounts. longer be deducted. tions and are no longer deductible.

Tax Preparation Fees

Casualty and Theft Losses Legal Expenses Tax preparation fees on the return for the year in Damaged or stolen property used in performing You can usually deduct legal expenses that you which you pay them are a miscellaneous item-services as an employee is a miscellaneous de- incur in attempting to produce or collect taxable ized deduction and can no longer be deducted. duction and can no longer be deducted. For income or that you pay in connection with the These fees include the cost of tax preparation other casualty and theft losses, see Pub. 547, determination, collection, or refund of any tax. software programs and tax publications. They Casualties, Disasters, and Thefts. also include any fee you paid for electronic filing Legal expenses that you incur in attempting

to produce or collect taxable income, or that you of your return.

Clerical Help and Office Rent pay in connection with the determination, col-



ments are miscellaneous itemized deductions You can deduct expenses of resolving tax is- Trustee’s administrative fees that are billed sep- arately and paid by you in connection with your sues relating to profit or loss from business re- and are no longer deductible. IRA are a miscellaneous itemized deduction ported on Schedule C (Form 1040), Profit or and can no longer be deducted. For more infor- Loss From Business, from rentals or royalties Credit or Debit Card Convenience mation about IRAs, see chapter 9 . reported on Schedule E (Form 1040), Supple- you pay in connection with your investments itemized deductions and are no longer deducti- IRA ble. and collecting taxable income on those invest-Office expenses, such as rent and clerical help, lection, or refund of any tax are miscellaneous Trustee’s Administrative Fees for



cessor for paying your income tax (including es- 1040), Profit or Loss From Farming. Expenses Expenses for resolving nonbusiness tax issues are miscel-timated tax payments) by credit or debit card is laneous itemized deductions and are no longer a miscellaneous itemized deduction and is no In addition to the miscellaneous itemized de-deductible. longer deductible. The convenience fee charged by the card pro- and expenses reported on Schedule F (Form Nondeductible Fees mental Income and Loss, or from farm income

ductions discussed earlier, you can’t deduct the

Loss on Deposits following expenses.

Depreciation on Home Computer



If you use your home computer to produce in- For information on whether, and if so, how, you List of Nondeductible may deduct a loss on your deposit in a qualified come (for example, to manage your investments financial institution, see Loss on Deposits in that produce taxable income), the depreciation Expenses Pub. 547. of the computer for that part of the usage of the • Adoption expenses. computer is a miscellaneous itemized deduc-Repayments of Income tion and is no longer deductible. • Broker’s commissions.

Generally, repayments of amounts that you in- • Burial or funeral expenses, including the



Dividends neous itemized deduction and can no longer be • Campaign expenses. deducted. If you had to repay more than $3,000 Fees you pay to a broker, bank, trustee, or simi-Fees To Collect Interest and cluded in income in an earlier year is a miscella- cost of a cemetery lot. lar agent to collect your taxable bond interest or that you included in your income in an earlier • Capital expenses.



itemized deductions and can no longer be de- See Repayments Under Claim of Right, later. • Club dues. ducted. dividends on shares of stock are miscellaneous year, you may be able to deduct the amount. • Check-writing fees.

102 Chapter 12 Other Itemized Deductions Publication 17 (2025)

• Commuting expenses. Check-Writing Fees on Personal Home Security System • Fees and licenses, such as car licenses, Account You can’t deduct the cost of a home security



• can’t deduct fees charged by the bank for the ever, you may be able to claim a deduction for a Fines or penalties. home security system as a business expense if privilege of writing checks, even if the account marriage licenses, and dog tags. If you have a personal checking account, you system as a miscellaneous deduction. How-

• Health spa expenses. pays interest. you have a home office. See Security system

• under Figuring the Deduction in Pub. 587. Hobby losses, but see Hobby Expenses ,



• You can’t deduct dues paid to an organiza-Life insurance premiums paid by the in-tion if one of its main purposes is to: sured. You can’t deduct premiums you pay on your life • Conduct entertainment activities for mem-insurance. You may be able to deduct, as ali-• Lobbying expenses. bers or their guests, or mony, premiums you pay on life insurance poli-• Losses from the sale of your home, furni-cies assigned to your former spouse. See Pub. • Provide members or their guests with ac-ture, personal car, etc. 504, Divorced or Separated Individuals, for in-cess to entertainment facilities. formation on alimony. • Lost or misplaced cash or property. Dues paid to airline, hotel, and luncheon • Lunches with co-workers. clubs aren’t deductible. Lobbying Expenses • Meals while working late. You generally can’t deduct amounts paid or in-Commuting Expenses • Medical expenses as business expenses curred for lobbying expenses. These include ex-other than medical examinations required You can’t deduct commuting expenses (the cost penses to: • ship in any club organized for business, pleas- You can’t deduct any expenses for attending a Home security system. ure, recreation, or other social purpose. This in- convention, seminar, or similar meeting for in- • Illegal bribes and kickbacks. cludes business, social, athletic, luncheon, vestment purposes. • Investment-related seminars. sporting, airline, hotel, golf, and country clubs. Life Insurance Premiums • Investment-Related Seminars Home repairs, insurance, and rent. Generally, you can’t deduct the cost of member-earlier. Club Dues

• main or regular place of work). If you haul tools, by your employer. of transportation between your home and your • Influence legislation;

Personal disability insurance premiums. instruments, or other items in your car to and • Participate or intervene in any political

• Personal legal expenses. from work, you can deduct only the additional campaign for, or against, any candidate for

• cost of hauling the items such as the rent on a Personal, living, or family expenses. public office;

• trailer to carry the items. • Political contributions. Attempt to influence the general public, or

• segments of the public, about elections,



• Professional reputation improvement ex- Generally, no deduction is allowed for fines and • Communicate directly with covered execu-pense. penalties paid to a government or specified Professional accreditation fees. Fines and Penalties legislative matters, or referendums; or

tive branch officials in any attempt to influ-



• Amounts that constitute restitution. Lobbying expenses also include any amounts Stockholders’ meeting attendance expen- paid or incurred for research, preparation, plan- ses. • Amounts paid to come into compliance ning, or coordination of any of these activities. with the law. • Tax-exempt income earning/collecting ex- penses. • law except in the following situations. those officials. Residential telephone line. • • Relief fund contributions. nongovernmental entity for the violation of any ence the official actions or positions of

• Amounts paid or incurred as the result of Dues used for lobbying. If a tax-exempt

• certain court orders in which no govern- organization notifies you that part of the dues or The value of wages never received or lost ment or specified nongovernmental

vacation time. agency is a party. other amounts you pay to the organization are



Adoption Expenses ing tickets, tax penalties, and penalties deduc- You can’t deduct a loss based on the mere dis- appearance of money or property. However, an ted from teachers’ paychecks after an illegal You can’t deduct the expenses of adopting a accidental loss or disappearance of property strike. child, but you may be able to take a credit for can qualify as a casualty if it results from an No deduction is allowed for the restitution those expenses. See the Instructions for Form identifiable event that is sudden, unexpected, or amount or amount paid to come into compli- 8839, Qualified Adoption Expenses, for more unusual. See Pub. 547 for more information. ance with the law unless the amounts are spe- information. cifically identified in the settlement agreement Lunches With Co-Workers or court order. Also, any amount paid or incur- Campaign Expenses red as reimbursement to the government for the You can’t deduct the expenses of lunches with costs of any investigation or litigation are not eli- You can’t deduct campaign expenses of a can- co-workers, except while traveling away from gible for the exceptions and are nondeductible. didate for any office, even if the candidate is home on business. See Pub. 463 for information running for reelection to the office. These in- on deductible expenses while traveling away clude qualification and registration fees for pri- • Voluntary unemployment benefit fund con- Nondeductible amounts include an amount tions. tributions. paid in settlement of your actual or potential lia-• Wristwatches. bility for a fine or penalty (civil or criminal). Fines Lost or Mislaid Cash or Property or penalties include amounts paid such as park-• Travel expenses for another individual. you can’t deduct that part. See Lobbying Ex- • Amounts paid or incurred for taxes due. penses in Pub. 529 for information on excep- used to pay nondeductible lobbying expenses,

Health Spa Expenses from home.

mary elections. You can’t deduct health spa expenses, even if



to defend charges that arise from participation physical condition, such as might be required of You can’t deduct the cost of meals while work-a law enforcement officer. in a political campaign. ing late. However, you may be able to claim a Legal fees. You can’t deduct legal fees paid there is a job requirement to stay in excellent Meals While Working Late

deduction if the cost of meals is a deductible

entertainment expense, or if you’re traveling

Publication 17 (2025) Chapter 12 Other Itemized Deductions 103 away from home. See Pub. 463 for information to get information that would be useful in mak- • Losses from Ponzi-type investment on deductible entertainment expenses and ex- ing further investments. schemes (see Pub. 547 for more informa-penses while traveling away from home. tion).

Tax-Exempt Income Expenses • Repayments of more than $3,000 under a

Personal Legal Expenses claim of right. You can’t deduct expenses to produce tax-ex-



as those for the following. debt incurred or continued to buy or carry Unrecovered investment in an annuity. • tax-exempt securities. • You can’t deduct personal legal expenses such empt income. You can’t deduct interest on a • Unlawful discrimination claims. Custody of children.

• If you have expenses to produce both taxa-Breach of promise to marry suit. ble and tax-exempt income, but you can’t iden- Amortizable Premium on Taxable



• Damages for personal injury, except for the amount that you can deduct. cess is bond premium. You can elect to amor-certain unlawful discrimination and whis-tize the premium on taxable bonds. The amorti-tle-blower claims. Travel Expenses for Another zation of the premium is generally an offset to • Preparation of a title (or defense or perfec-Individual interest income on the bond rather than a sepa-tion of a title). • Civil or criminal charges resulting from a tify the expenses that produce each type of in- Bonds personal relationship. come, you must divide the expenses based on In general, if the amount you pay for a bond is the amount of each type of income to determine greater than its stated principal amount, the ex-

rate deduction item.



result of the legal proceeding is the loss of in-You can’t deduct these expenses even if a the spouse, dependent, or other individual is an Bond Premium Amortization in chapter 3 of employee of the taxpayer, the travel is for a Pub. 550, Investment Income and Expenses. bona fide business purpose, and such expen-come-producing property. ses would otherwise be deductible by the Casualty and Theft Losses of spouse, dependent, or other individual. See Political Contributions Pub. 463 for more information on deductible Income-Producing Property You can’t deduct contributions made to a politi-travel expenses. You can deduct a casualty or theft loss as an cal candidate, a campaign committee, or a • an itemized deduction on Schedule A (Form Property claims or property settlement in a individual who accompanies you (or your em- 1040). For more information, see Amortizable divorce. ployee) on business or personal travel unless Premium on Taxable Bonds in Pub. 529 and • You generally can’t deduct travel expenses you Preparation of a will. Part of the premium on some bonds may be pay or incur for a spouse, dependent, or other

newsletter fund. Advertisements in convention Voluntary Unemployment line 16, if the damaged or stolen property was bulletins and admissions to dinners or programs itemized deduction on Schedule A (Form 1040),



Professional Accreditation Fees or a private fund. However, you can deduct con- the loss in Form 4684, Section B. You may also have to include the loss on Form 4797 if you’re tributions as taxes if state law requires you to otherwise required to file that form. To figure You can’t deduct professional accreditation fees make them to a state unemployment fund that your deduction, add all casualty or theft losses such as the following. covers you for the loss of wages from unem- from this type of property included on Form ployment caused by business conditions. • Accounting certificate fees paid for the ini- 4684, lines 32 and 38b, or Form 4797, line 18a. tial right to practice accounting. date aren’t deductible. You can’t deduct voluntary unemployment ben- investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). First, report efit fund contributions you make to a union fund that benefit a political party or political candi- Benefit Fund Contributions income-producing property (property held for

Wristwatches For more information on casualty and theft los-

• ses, see Pub. 547. Bar exam fees and incidental expenses in



• if there is a job requirement that you know the Excess Deductions of an Estate or Medical and dental license fees paid to get correct time to properly perform your duties. initial licensing. securing initial admission to the bar. You can’t deduct the cost of a wristwatch, even

Trust

Expenses You Can Generally, if an estate or trust has an excess de-



pearances to increase your personal prestige or trust’s last tax year, a beneficiary can deduct the excess deductions, depending on its character. establish your professional reputation. You can deduct the items listed below as item- The excess deductions retain their character as ized deductions. Report these items on Sched- an adjustment to arrive at adjusted gross in- You can’t deduct expenses of radio and TV ap- greater than its gross income, in the estate’s or Deduct Professional Reputation duction resulting from total deductions being

Relief Fund Contributions ule A (Form 1040), line 16, or Schedule A (Form 1040-NR), line 7. come on Schedule 1 (Form 1040), as a

You can’t deduct contributions paid to a private non-miscellaneous itemized deduction reported



illness not related to the job. on excess deductions of an estate or trust, see Each of the following items is discussed in de- the Instructions for Schedule K-1 (Form 1041) tail after the list (except where indicated). for a Beneficiary Filing Form 1040. Residential Telephone Service • ployee who can’t work because of any injury or ous itemized deduction. For more information List of Deductions plan that pays benefits to any covered em- on Schedule A (Form 1040), or as a miscellane-

Amortizable premium on taxable bonds.



You can’t deduct any charge (including taxes) Federal Estate Tax on Income in • Casualty and theft losses from income- for basic local telephone service for the first tel- producing property. Respect of a Decedent ephone line to your residence, even if it’s used

in a trade or business. • Excess deductions of an estate or trust. You can deduct the federal estate tax attributa-



Stockholders’ Meetings a decedent. Income in respect of the decedent is gross in-You can’t deduct transportation and other ex-• ble to income in respect of a decedent that you Federal estate tax on income in respect of as a beneficiary include in your gross income.

• Gambling losses up to the amount of gam- come that the decedent would have received



ings of companies in which you own stock but includible in the decedent’s final income tax re- • Impairment-related work expenses of per- have no other interest. You can’t deduct these penses you pay to attend stockholders’ meet- bling winnings. had death not occurred and that wasn’t properly

expenses even if you’re attending the meeting sons with disabilities. turn. See Pub. 559, Survivors, Executors, and Administrators, for more information.

104 Chapter 12 Other Itemized Deductions Publication 17 (2025)

Gambling Losses up to the See Pub. 529 for more information. tax. See Repayments in chapter 8 for more in-Amount of Gambling Winnings formation. You must report the full amount of your gam- Impairment-Related Work bling winnings for the year on Schedule 1 (Form Expenses Unlawful Discrimination Claims 1040), line 8b. You deduct your gambling losses If you have a physical or mental disability that You may be able to deduct, as an adjustment to for the year on Schedule A (Form 1040), line 16. income on Schedule 1 (Form 1040), line 24h, limits your being employed, or substantially lim-

You can’t deduct gambling losses that are more its one or more of your major life activities, such attorney fees and court costs for actions settled than your winnings. as performing manual tasks, walking, speaking, or decided after October 22, 2004, involving a

You can’t reduce your gambling win- breathing, learning, and working, you can de- claim of unlawful discrimination, a claim against

! nings by your gambling losses and re- duct your impairment-related work expenses. the U.S. Government, or a claim made under



claim your losses (up to the amount of win- tendant care services at your place of work and the amount of the judgment or settlement you nings) as an itemized deduction. Therefore, for other expenses in connection with your are including in income for the tax year. See place of work that are necessary for you to be your records should show your winnings sepa-Pub. 525, Taxable and Nontaxable Income, for rately from your losses. able to work. more information. full amount of your winnings as income and However, the amount you can deduct on nary and necessary business expenses for at- Schedule 1 (Form 1040), line 24h, is limited to CAUTION section 1862(b)(3)(A) of the Social Security Act. Impairment-related work expenses are ordi- port the difference. You must report the

Diary of winnings and losses. You ter your impairment-related work expenses on Self-employed. If you’re self-employed, en-

RECORDS must keep an accurate diary or similar Unrecovered Investment in the appropriate form (Schedule C (Form 1040), record of your losses and winnings. Annuity Schedule E (Form 1040), or Schedule F (Form Your diary should contain at least the following 1040)) used to report your business income and A retiree who contributed to the cost of an annu-

information. expenses. ity can exclude from income a part of each pay-



• wagering activity. entire investment is recovered tax free, any un- If you had to repay more than $3,000 that you The name and address or location of the recovered investment can be deducted on the included in your income in an earlier year be- gambling establishment. retiree’s final income tax return. See Pub. 575, cause at the time you thought you had an unre- • ment received as a tax-free return of the retir- The date and type of your specific wager or ee’s investment. If the retiree dies before the Repayments Under Claim of Right

• Pension and Annuity Income, for more informa- The names of other persons present with stricted right to it, you may be able to deduct the

you at the gambling establishment. amount you repaid or take a credit against your tion about the tax treatment of pensions and an-

nuities.

• The amount(s) you won or lost.



Publication 17 (2025) Chapter 12 Other Itemized Deductions 105 Part Four.





Figuring Your The two chapters in this part explain how to figure your tax. They also


discuss tax credits that, unlike deductions, are subtracted directly from your

Taxes, and tax and reduce your tax dollar for dollar.



Refundable and The Form 1040 and 1040-SR schedules that are discussed in these chapters are:



Nonrefundable • Schedule 1, Additional Income and Adjustments to Income; • Schedule 2, Additional Taxes; and Credits • Schedule 3, Additional Credits and Payments.



13. W-2 W-2Wage and Tax Statement Schedule R (Form 1040) Figuring Your Tax Form (and Instructions) Credit for the Schedule R (Form 1040) Your income tax is based on your taxable in-

Elderly or the Disabled come. After you figure your income tax and



How To Figure AMT, if any, subtract your tax credits and add Schedule SE (Form 1040) Schedule SE (Form 1040) any other taxes you may owe. The result is your Self-Employment Tax

total tax. Compare your total tax with your total



Your Tax Schedule 8812 (Form 1040) Schedule 8812 (Form 1040) Credits for payments to determine whether you are entitled Qualifying Children and Other to a refund or must make a payment. Dependents This section provides a general outline of 1116 how to figure your tax. You can find step-by-step Introduction 1116 Foreign Tax Credit directions in the Instructions for Form 1040. 3800 3800 General Business Credit



After you have figured your income and deduc- Tax. Most taxpayers use either the Tax Table or 4136 the Tax Computation Worksheet to figure their tions, your next step is to figure your tax. This 4136 Credit for Federal Tax Paid on Fuels 4970 chapter discusses: 4970 Tax on Accumulation Distribution of income tax. However, there are special meth- Trusts ods if your income includes any of the following • The general steps you take to figure your items. tax, 5329 5329 Additional Taxes on Qualified Plans • (Including IRAs) and Other A net capital gain. See Pub. 550. • An additional tax you may have to pay Tax-Favored Accounts called the alternative minimum tax (AMT), • Qualified dividends taxed at the same rates as a net capital gain. See Pub. 550. and 5695 5695 Residential Energy Credits



Useful Items • The conditions you must meet if you want • Lump-sum distributions. See Pub. 575. 5884 the IRS to figure your tax. 5884 Work Opportunity Credit • Farming or fishing income. See Schedule J 8396 8396 Mortgage Interest Credit (Form 1040). 8801 8801 Credit for Prior Year Minimum • Tax for certain children who have unearned You may want to see: Tax—Individuals, Estates, and Trusts income. See Form 8615.

Publication 8835 • Parent’s election to report child’s interest 8835 Renewable Electricity Production

Credit and dividends. See Form 8814.

503 503 Child and Dependent Care Expenses 8839 8839 Qualified Adoption Expenses • Foreign earned income exclusion or the



525 Earned Income Tax Worksheet in the In- 525 Taxable and Nontaxable Income Employee Tips structions for Form 1040.) 8853 531 8853 531 Archer MSAs and Long-Term Care Reporting Tip Income Credits. After you figure your income tax and Insurance Contracts any 505 Tax Withholding and Estimated Tax 8846 eign Earned Income, and the Foreign and Medicare Taxes Paid on Certain 505 8846 housing exclusion. (See Form 2555, For- Credit for Employer Social Security



550 AMT (discussed later), determine if you are 550 Investment Income and Expenses 8880 8880 Credit for Qualified Retirement eligible for any tax credits. Eligibility information Savings Contributions for these tax credits is discussed in other publi- 560 560 Retirement Plans for Small Business cations and your form instructions. The follow- (SEP, SIMPLE, and Qualified Plans) 8889 8889 Health Savings Accounts (HSAs) ing items are some of the credits you may be 575 575 Pension and Annuity Income 8910 8910 Alternative Motor Vehicle Credit able to subtract from your tax and shows where

596 596 Earned Income Credit (EIC) 8912 you can find more information on each credit. Credit to Holders of Tax Credit 8912

Bonds • Adoption credit. See Form 8839.



969 8910. 969 Health Savings Accounts and Other 8959 Tax-Favored Health Plans 926 926 Household Employer’s Tax Guide • 8936 8936 Clean Vehicle Credits Alternative motor vehicle credit. See Form

Additional Medicare Tax 8959 • Child and dependent care credit. See Pub.

970 970 Tax Benefits for Education Tax—Individuals, Estates, and Trusts • 8960 8960 Net Investment Income 503. Child tax credit. See Schedule 8812 (Form

974 974 Premium Tax Credit (PTC) 8962 8962 Premium Tax Credit (PTC) 1040).

106 Chapter 13 How To Figure Your Tax Publication 17 (2025)





• Credit for employer social security and lots and timeshares. See the Instructions Alternative Minimum Medicare taxes paid on certain employee for Form 1040.


tips. See Form 8846. • Net investment income tax. See Form Tax (AMT)

• Credit to holders of tax credit bonds. See 8960.

Form 8912. • Recapture of an education credit. See Pub. This section briefly discusses an additional tax

• Education credit. See Pub. 970. 970. you may have to pay.

• Elderly or disabled credit. See Schedule R • Recapture of other credits. See the Instruc- The tax law gives special treatment to some

(Form 1040). tions for Form 1040. kinds of income and allows special deductions



credit) aren’t listed because they are treated as • Prior year minimum tax credit. See Form • Social security and Medicare tax on wa- more than a certain amount. See Form 6251, 8801. ges. See Pub. 525. Alternative Minimum Tax—Individuals. • Renewable electricity production credit. • Tax on accumulation distribution of trusts. Adjustments and tax preference items. The See Form 8835. See Form 4970. more common adjustments and tax preference • Residential clean energy credit. See Form • Tax on golden parachute payments. See items include: 5695. the Instructions for Form 1040. • Addition of enhanced senior deduction; • Retirement savings contribution credit. See • Uncollected social security and Medicare • Addition of the standard deduction (if Form 8880. tax on group-term life insurance. See Form claimed); W-2. • Work opportunity credit. See Form 5884. • Addition of itemized deductions claimed for • Uncollected social security and Medicare Some credits (such as the earned income state and local taxes and certain interest; tax on tips. See Pub. 531. • Subtraction of any refund of state and local payments. See • • Self-employment tax. See Schedule SE Mortgage interest credit. See Form 8396. tax through an additional tax called AMT. (Form 1040). • Clean vehicle credits. See Form 8936. You may have to pay the AMT if your taxable • Social security and Medicare tax on tips. • Premium tax credit. See Pub. 974. income for regular tax purposes, combined with See Pub. 531. certain adjustments and tax preference items, is • Pub. 560. payers who benefit from this special treatment General business credit. See Form 3800. may have to pay at least a minimum amount of • Foreign tax credit. See Form 1116. • Section 72(m)(5) excess benefits tax. See and credits for some kinds of expenses. Tax-



Other taxes. After you subtract your tax cred- • Changes to accelerated depreciation of its, determine whether there are any other taxes Payments. After you determine your total tax, certain property; you must pay. This chapter doesn’t explain figure the total payments you have already • Payments, later. You may also have to pay AMT (discussed later in this chapter). taxes included in gross income; these other taxes. You can find that information made for the year. Include credits that are trea- Difference between gain or loss on the sale in other publications and your form instructions. ted as payments. This chapter doesn’t explain of property reported for regular tax purpo-See the following list for other taxes you may these payments and credits. You can find that ses and AMT purposes;



need to add to your income tax. information in other publications and your form • Addition of certain income from incentive instructions. See the following list of payments • Additional Medicare tax. See Form 8959. stock options; and credits that you may be able to include in • Additional tax on ABLE accounts. See • Change in certain passive activity loss de-your total payments. Pub. 969. ductions; • Additional child tax credit. See Schedule • Additional tax on Archer MSAs and • Addition of certain depletion that is more 8812 (Form 1040). long-term care insurance contracts. See than the adjusted basis of the property; • American opportunity credit. See Pub. 970. Form 8853. • Addition of part of the deduction for certain • Credit for federal tax on fuels. See Form • Additional tax on Coverdell ESAs. See intangible drilling costs; and 4136. Form 5329. • Addition of tax-exempt interest on certain • Credit for tax on undistributed capital gain. • Additional tax on HSAs. See Form 8889. private activity bonds. See the Instructions for Form 1040. • Additional tax on income you received from More information. For more information about • Earned income credit. See Pub. 596. a nonqualified deferred compensation plan the AMT, see the Instructions for Form 6251. • that fails to meet certain requirements. See Estimated tax paid. See Pub. 505. Tax Figured by the IRS the Instructions for Form 1040. • Excess social security and RRTA tax with-• Additional tax on qualified plans and other held. See the Instructions for Form 1040. tax-favored accounts. See Form 5329. If you file by the due date of your return (not • Federal income tax withheld. See Pub. counting extensions)—April 15, 2026, for most • Additional tax on qualified retirement plans 505. people—you can have the IRS figure your tax and IRAs. See Form 5329. • Net premium tax credit. See the Instruc-for you on Form 1040 or 1040-SR. • Additional tax on qualified tuition pro-tions for Form 8962 or the Instructions for grams. See Pub. 970. Form 1040. If the IRS figures your tax and you paid too much, you will receive a refund. If you didn’t pay • Excise tax on insider stock compensation • Qualified sick and family leave credits. See enough, you will receive a bill for the balance. from an expatriated corporation. See the the Instructions for Form 1040. To avoid interest or the penalty for late payment, Instructions for Form 1040. • Tax paid with extension. See the Instruc-you must pay the bill within 30 days of the date • Household employment taxes. See Pub. tions for Form 1040. of the bill or by the due date for your return, 926. whichever is later. Refund or balance due. To determine • Interest on the deferred tax on gain from whether you are entitled to a refund or whether The IRS can also figure the credit for the eld-certain installment sales with a sales price you must make a payment, compare your total erly or the disabled and the earned income over $150,000. See the Instructions for payments with your total tax. If you are entitled credit for you. Form 1040. to a refund, see your form instructions for infor-



• mation on having it directly deposited into one When the IRS cannot figure your tax. The Interest on the tax due on installment in- or more of your accounts (including a traditional IRS can’t figure your tax for you if any of the fol- come from the sale of certain residential IRA, Roth IRA, or a SEP-IRA). lowing apply.

Publication 17 (2025) Chapter 13 How To Figure Your Tax 107





1. You want your refund directly deposited Fill in and attach any schedules and forms on Schedule EIC, line 2, the credit will be re-


into your checking or savings account. asked for on the lines you completed to your pa- duced or disallowed unless the child was born



3. You had income for the year from sources your 2026 estimated tax. If your credit for any year after 1996 was re- paper return any Form 1099-R you received that duced or disallowed by the IRS, you may also 2. You want any part of your refund applied to W-2 to your paper return. Also, attach to your per return. Attach a copy of each of your Forms and died in 2025.

has withholding tax in box 4. have to file Form 8862 with your return. For de-

other than wages, salaries, tips, interest, Mail your return to the Internal Revenue tails, see the Instructions for Form 1040. dividends, taxable social security benefits, Service Center for the area where you live. A list unemployment compensation, IRA distri- of service center addresses is in the instruc-butions, pensions, and annuities. tions for your tax return.

4. Your taxable income is $100,000 or more.



5. You itemize deductions. Form 1040 or 1040-SR Line Entries 14. If you want the IRS to figure your tax. Read

6. You file any of the following forms. Form 1040 or 1040-SR, lines 1 through 15, and

a. Form 2555, Foreign Earned Income. Schedule 1 (Form 1040), if applicable. Fill in the

lines that apply to you and attach Schedule 1 Child Tax Credit

b. Form 4137, Social Security and Medi- (Form 1040), if applicable. Don’t complete Form



care Tax on Unreported Tip Income. 1040 or 1040-SR, line 16 or 17. and Credit for

c. Form 4970, Tax on Accumulation Dis- If you are filing a joint return, use the space

tribution of Trusts. on the dotted line next to the words “Adjusted



d. Form 4972, Tax on Lump-Sum Distri- separately show your taxable income and your Gross Income” on the first page of your return to Other

butions. spouse’s taxable income.



e. Form 6198, At-Risk Limitations. Read Form 1040 or 1040-SR, lines 19 Dependents f. Form 6251, Alternative Minimum through 33, and Schedules 2 and 3 (Form 1040), if applicable. Fill in the lines that apply to Tax—Individuals.

you and attach Schedules 2 and 3 (Form 1040),



g. Form 8606, Nondeductible IRAs. if applicable. Don’t fill in Form 1040 or 1040-SR, What’s New h. Form 8615, Tax for Certain Children line 22, 24, 33, or 34 through 38. Don’t fill in Schedule 2 (Form 1040), line 2 or 3. Also, don’t Who Have Unearned Income.

complete Schedule 3 (Form 1040), line 6d, if SSN required by due date of return. If you

i. Form 8814, Parents’ Election To Re- you are completing Schedule R (Form 1040), or don’t have an SSN issued before the due date

port Child’s Interest and Dividends. Form 1040 or 1040-SR, line 27a, if you want the of your 2025 return (including extensions), you

j. Form 8839, Qualified Adoption Ex- IRS to figure the credits shown on those lines. can’t claim the CTC or ACTC on either your



Filing the Return m. Form 8919, Uncollected Social Secur-l. Form 8889, Health Savings Accounts formation), enter the amount on Form 1040 or it must have been issued on or before the due (HSAs). 1040-SR, line 25. Enter any estimated tax pay-date of the return. ments you made on Form 1040 or 1040-SR, line 26. CTC amount increased. The maximum ity and Medicare Tax on Wages. amount of CTC for each qualifying child in-Credit for child and dependent care expen-creased to $2,200. ses. If you can take this credit, complete Form 2441 and attach it to your paper return. Enter Reminders k. Form 8853, Archer MSAs and held that is shown on Form W-2, box 2; Form to have an SSN issued by the due date of your 1099, box 4; Form W-2G, box 4; or another form Long-Term Care Insurance Contracts. return in order to be eligible for the CTC and (see the Instructions for Form 1040 for more in-ACTC. The other spouse may have an ITIN, but penses. Payments. If you have federal income tax with- filing a joint return, only one spouse is required original or an amended 2025 return. If you are After you complete the line entries for the tax the amount of the credit on Schedule 3 (Form 1040), line 2. The IRS will not figure this credit. form you are filing, fill in your name and ad-



space provided. If you are married, enter the so- complete Form 8962, Premium Tax Credit ACTC for each qualifying child is $1,700. cial security numbers of you and your spouse, dress. Enter your social security number in the Net premium tax credit. If you take this credit, ACTC amount. The maximum amount of

(PTC), and attach it to your return. Enter the

even if you file separately. Sign and date your Schedule 8812 (Form 1040). Schedule 8812 amount of the credit on Schedule 3 (Form

return and enter your occupation(s). If you are (Form 1040) and its instructions are the single 1040), line 9. The IRS will not figure this credit.

filing a joint return, both you and your spouse source for figuring and reporting the child tax



in the space provided. This may help speed the can take this credit, the IRS can figure it for you. tional child tax credit. The instructions now in-Enter “CFE” on the line next to Schedule 3 must sign it. Enter your daytime phone number Credit for the elderly or the disabled. If you credit, credit for other dependents, and addi-

that can be answered over the phone. If you are (Form 1040), line 6d, and attach Schedule R processing of your return if we have a question clude all applicable worksheets for figuring

these credits. As a result, Pub. 972, Child Tax



family member, or any other person you choose If you want to allow your preparer, a friend, a Abbreviations used throughout this chap- III, lines 11 and 13, if they apply. ter. The following abbreviations will be used in to discuss your 2025 tax return with the IRS, Earned income credit. If you can take this this chapter when appropriate. check the “Yes” box in the “Third Party Desig- credit, the IRS can figure it for you. Enter “EIC” nee” area on your return. Also, enter the design- your spouse’s daytime phone number. ule R (Form 1040), check the box in Part I for of Pub. 972, go to IRS.gov/Pub972. your filing status and age. Complete Parts II and filing a joint return, you may enter either your or (Form 1040) to your paper return. On Sched- Credit, won’t be revised. For prior-year versions

on the dotted line on Form 1040 or 1040-SR, • ACTC means additional child tax credit.



ee’s name, phone number, and any five digits line 27a. If you elect to use your nontaxable • ATIN means adoption taxpayer identifica-the designee chooses as their personal identifi-combat pay in figuring your EIC, enter the tion number. cation number (PIN). If you check the “Yes” box, amount on Form 1040 or 1040-SR, line 1i. you, and your spouse if filing a joint return, are • CTC means child tax credit. If you have a qualifying child, you must fill in authorizing the IRS to call the designee to an-Schedule EIC (Form 1040), Earned Income • ITIN means individual taxpayer identifica-swer any questions that may arise during the Credit, and attach it to your paper return. If you tion number. processing of your return. don’t provide the child’s social security number • ODC means credit for other dependents.

108 Chapter 14 Child Tax Credit and Credit for Other Dependents Publication 17 (2025) Other abbreviations may be used in this chapter • SSN means social security number. If your qualifying child was born and died in Qualifying Child for the 2025 and you don’t have an SSN for the child, • TIN means taxpayer identification number. attach a copy of the child’s birth certificate, CTC A TIN may be an ATIN, an ITIN, or an SSN. death certificate, or hospital records. The docu-A child qualifies you for the CTC if the child ment must show the child was born alive. meets all of the following conditions. and will be defined as needed. If your qualifying child doesn’t have the re-Delayed refund for returns claiming the quired SSN but has another type of TIN issued 1. The child is your son, daughter, stepchild, ACTC. The IRS can’t issue refunds before on or before the due date of your 2025 return foster child, brother, sister, stepbrother, mid-February 2026 for returns that properly (including extensions), you may be able to claim stepsister, half brother, half sister, or a de-

claim the ACTC. This time frame applies to the the ODC for that child. See Credit for Other De- scendant of any of them (for example, your

entire refund, not just the portion associated pendents (ODC), later. grandchild, niece, or nephew).

with the ACTC. Each dependent you use for the ODC must 2. The child was under age 17 at the end of



Introduction have a TIN by the due date of your return. If 2025. you have a dependent who doesn’t have an 3. The child didn’t provide over half the SSN, ITIN, or ATIN issued on or before the due child’s own support for 2025.

The CTC is a credit that may reduce your tax by date of your 2025 return (including extensions), as much as $2,200 for each child who qualifies you can’t use that dependent to claim the ODC 4. The child lived with you for more than half

you for the credit. See on either your original or amended 2025 tax re- of 2025 (see Exceptions to time lived with Limits on the CTC and



take if you are not able to claim the full amount The ACTC is a credit you may be able to If you apply for an ITIN or ATIN for the de- 5. The child is claimed as a dependent on pendent on or before the due date of your 2025 your return. See ODC turn. you, later). , later.



tax by as much as $500 for each eligible de-The ODC is a credit that may reduce your the ITIN or ATIN as a result of the application, pendent. the IRS will consider the ITIN or ATIN as issued on or before the due date of your return. pendent. 6. The child doesn’t file a joint return for the year (or files it only to claim a refund of of the CTC. return (including extensions) and the IRS issues mation about claiming someone as a de-chapter 3 for more infor-



! confused with the child and dependent paid). care credit discussed in Pub. 503. The CTC and the ACTC shouldn’t be withheld income tax or estimated tax Improper Claims

CAUTION

If you erroneously claim the CTC, ACTC, or 7. The child was a U.S. citizen, U.S. national,

ODC, and it is later determined that your error or U.S. resident alien. For more informa-

Useful Items was due to reckless or intentional disregard of tion, see Pub. 519. If the child was adop-

You may want to see: the CTC, ACTC, or ODC rules, you will not be ted, see Adopted child, later.

allowed to claim any of these credits for 2 years.

Form (and Instructions) If it is determined that your error was due to Example. Your child turned 17 on Decem-

fraud, you will not be allowed to claim any of ber 30, 2025, and is a citizen of the United

Schedule 8812 (Form 1040) Schedule 8812 (Form 1040) Credits for these credits for 10 years. You may also have to States and claimed as a dependent on your re-

Qualifying Children and Other pay penalties. See How to appeal the disallow- turn. You can't use the child to claim the CTC or Dependents ance period in the Instructions for Form 8862, ACTC because the child was not under age 17



For these and other useful items, go to After Disallowance agree with our determination that you can’t If your child is age 17 or older at the claim the credit for 2 or 10 years. 8862 8862 Information To Claim Certain Credits for more information about what to do if you dis- at the end of 2025.

IRS.gov/ TIP end of 2025, see Credit for Other De-

Forms. Form 8862 may be required. If your CTC (re- pendents (ODC), later.



Taxpayer Identification fundable or nonrefundable depending on the tax year), ACTC, or ODC for a year after 2015 Adopted child. An adopted child is always

Number Requirements was denied or reduced for any reason other treated as your own child. An adopted child in-

than a math or clerical error, you must attach cludes a child lawfully placed with you for legal

Form 8862 to your tax return to claim the CTC, adoption.

You must have a TIN by the due date of your ACTC, or ODC, unless an exception applies. If you are a U.S. citizen or U.S. national and return. If you, or your spouse if filing jointly, See Form 8862, and its instructions for more in- your adopted child lived with you all year as a don’t have an SSN issued before the due date formation, including whether an exception ap- member of your household in 2025, that child of your 2025 return (including extensions), you plies. meets condition 7, earlier, to be a qualifying

original or amended 2025 tax return. to be a qualifying person for the ODC).



have an SSN or ITIN issued on or before the If you, or your spouse if filing jointly, don’t Exceptions to time lived with you. A child is The CTC is for individuals who claim a child as considered to have lived with you for more than due date of your 2025 return (including exten- a dependent if the child meets additional condi- half of 2025 if the child was born or died in 2025 sions), you can’t claim the ODC on either your tions (described later). can’t claim the CTC or ACTC on either your child for the child tax credit (or condition 3, later, Child Tax Credit (CTC)

original or amended 2025 tax return. than half the time the child was alive. Temporary and your home was this child's home for more

If you apply for an ITIN on or before the due Note: This credit is different from and in ad- absences by you or the child for special circum-

date of your 2025 return (including extensions) dition to the credit for child and dependent care stances, such as school, vacation, business, and the IRS issues you an ITIN as a result of the expenses and the earned income credit that medical care, military service, or detention in a



ACTC must have the required SSN. If you credit is $2,200 for each child who qualifies you There are also exceptions for kidnapped children and children of divorced or separated for the CTC. But, see Limits on the CTC and have a qualifying child who doesn’t have the re- parents. For details, see Residency Test in ODC , later. quired SSN, you can’t use the child to claim the chapter 3. For more information about claiming the issued on or before the due date of your return. you. The maximum amount you can claim for the Each qualifying child you use for CTC or application, the IRS will consider your ITIN as you may also be eligible to claim. juvenile facility, count as time the child lived with



CTC or ACTC on either your original or amen- Qualifying child of more than one person. ded 2025 tax return. The required SSN is one CTC, see Claiming the CTC and ODC , later. A special rule applies if your qualifying child is that is valid for employment and is issued be- the qualifying child of more than one person. fore the due date of your 2025 return (including

extensions).

Publication 17 (2025) Chapter 14 Child Tax Credit and Credit for Other Dependents 109

For details, see Qualifying Child of More Than 2. The person can’t be used by you to claim each dependent for whom you are claiming

One Person in chapter 3. the CTC or ACTC. See Child Tax Credit the CTC or ODC.



child received the SSN, the SSN is valid for em-If your child was a U.S. citizen when the the required SSN, see enter the required SSN for the child in row Credit for Other ent to claim the ODC. (3) of the Dependents section of your tax Dependents (ODC) , later. return and check the “Child tax credit” box You can’t use the same child to claim in row (7). See Child Tax Credit (CTC) , ear- the CTC or ACTC, and the ODC. ! lier. CAUTION ployment. If “Not Valid for Employment” is prin- • For each dependent for whom you are ted on your child’s social security card and your claiming the ODC, you must enter the child’s immigration status has changed so that Timely Issued TIN timely issued TIN for the dependent in row your child is now a U.S. citizen or permanent (3) of the Dependents section of your tax resident, ask the SSA for a new social security In addition to being a qualifying person for the return and check the “Credit for other de- card without the legend. However, if “Valid for ODC, the person must have an SSN, ITIN, or pendents” box in row (7). See Credit for Work Only With DHS Authorization” is printed ATIN issued to the dependent on or before the Other Dependents (ODC) , earlier. on your child’s social security card, your child due date of your 2025 return (including exten- has the required SSN only as long as the De- sions). If the person has not been issued an Don't check both the Child tax credit partment of Homeland Security (DHS) authori- SSN, ITIN, or ATIN by that date, you can’t use box and the Credit for other depend- ! zation is valid. the person to claim the ODC on either your orig- CAUTION ents box for the same person. If your child doesn’t have the required SSN, inal or amended 2025 return. For more informa- you can't use the child to claim the CTC or tion, see Taxpayer Identification Number Re- ACTC on either your original or amended 2025 quirements , earlier. Additional Child Tax tax return. Credit (ACTC) Limits on the CTC and The required SSN is one that is valid for em- your adopted child, see • You must enter a timely issued TIN on your Adopted child , tax return for you and your spouse (if filing earlier. ployment and that is issued by the Social Se- jointly). See Taxpayer Identification Num- ber Requirements curity Administration (SSA) before the due date , earlier. Example. Your sibling’s 10-year-old child of your 2025 return (including extensions). lives in Mexico and qualifies as your dependent. • For each qualifying child under 17 for The child is not a U.S. citizen, U.S. national, or whom you are claiming the CTC, you must If your qualifying child does not have U.S. resident alien. You can't use this depend- TIP In addition to being a qualifying child for the 3. The person was a U.S. citizen, U.S. na- • You must file Form 8862, if applicable. See tional, or U.S. resident alien. For more in-Improper Claims , earlier. formation, see Pub. 519. If the person is CTC, your child must have the required SSN. Required SSN (CTC), earlier. • You must file Schedule 8812 (Form 1040).



Credit for Other ODC This credit is for certain individuals who get less Dependents (ODC) than the full amount of the CTC. The ODC can’t be used to figure the The credit amount of your CTC or ODC may be This credit is for individuals with a dependent reduced if your modified adjusted gross income ! ACTC. Only your CTC can be used to who meets additional conditions (described (AGI) is more than the amounts shown below CAUTION figure your ACTC. If you are claiming later). the ODC but not the CTC, you can’t claim the for your filing status. ACTC. • Married filing jointly — $400,000. Note: This credit is different from and in ad-

dition to the credit for child and dependent care • All other filing statuses — $200,000. Foreign earned income. If you file Form 2555 expenses that you may also be eligible to claim. (relating to foreign earned income), you can’t

The maximum amount you can claim for this Modified AGI. For purposes of the CTC and claim the ACTC.

credit is $500 for each qualifying dependent. ODC, your modified AGI is the amount on line 3 Bona fide residents of Puerto Rico. Bona of Schedule 8812. See Limits on the CTC and ODC , later. fide residents of Puerto Rico are no longer re-



ODC, see For more information about claiming the quired to have three or more qualifying children For more information about limits on the Claiming the CTC and ODC , later. to be eligible to claim the ACTC. See Schedule CTC and ODC, see the Instructions for Sched- 8812 (Form 1040) and its instructions. ule 8812 (Form 1040). Qualifying Person for the How to claim the ACTC. To claim the ACTC, Claiming the CTC and see Schedule 8812 (Form 1040) and its instruc- ODC tions. ODC A person qualifies you for the ODC if the person

meets all of the following conditions.

To claim the CTC or ODC, be sure you meet the

1. The person is claimed as a dependent on following requirements.

mation about claiming someone as a de-your return. See chapter 3 for more infor- • You must file Form 1040, 1040-SR, or pendent. 1040-NR and include the name and TIN of



110 Chapter 14 Child Tax Credit and Credit for Other Dependents Publication 17 (2025)





2025 See Line 16 in the Instructions for Form 1040 to see if you must use Sample Table the Tax Table below to figure your tax.


Tax Table ! At But Single Married Married Head CAUTION Least Less filing filing of a

Than jointly* sepa- house-

Example. A married couple are filing a joint return. Their taxable income on Form rately hold

Next, they find the column for married filing jointly and read down the column. The 25,200 25,250 2,789 2,550 2,789 2,687 amount shown where the taxable income line and filing status column meet is 1040, line 15, is $25,300. First, they find the $25,300–25,350 taxable income line. Your tax is—

line 16. 25,350 2,801 2,562 2,801 2,699 25,350 $2,562. This is the tax amount they should enter in the entry space on Form 1040, 25,300 25,250 25,300 2,795 2,556 2,795 2,693

25,400 2,807 2,568 2,807 2,705



If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

0 5 0 0 0 0 1,000 2,000 5 15 1 1 1 1

15 25 2 2 2 2

25 50 4 4 4 4 1,000 1,025 101 101 101 101 2,000 2,025 201 201 201 201 50 75 6 6 6 6 1,025 1,050 104 104 104 104 2,025 2,050 204 204 204 204

75 100 9 9 9 9 1,075 1,050 1,075 106 106 106 106 2,050 2,075 206 206 206 206

100 125 11 11 11 11 1,100 1,100 109 109 109 109 2,075 2,100 209 209 209 209 1,125 111 111 111 111 2,100 2,125 211 211 211 211

125 150 14 14 14 14

150 175 16 16 16 16 1,125 1,150 114 114 114 114 2,125 2,150 214 214 214 214 175 200 19 19 19 19 1,150 1,175 116 116 116 116 2,150 2,175 216 216 216 216

200 225 21 21 21 21 1,200 1,175 1,200 119 119 119 119 2,175 2,200 219 219 219 219 225 250 24 24 24 24 1,225 1,225 121 121 121 121 2,200 2,225 221 221 221 221 1,250 124 124 124 124 2,225 2,250 224 224 224 224

275 1,250 1,275 126 126 126 126 2,250 2,275 226 226 226 226 250 275 26 26 26 26

300 1,275 1,300 129 129 129 129 2,275 2,300 229 229 229 229 300 29 29 29 29

325 31 31 31 31

325 350 34 34 34 34 1,325 1,300 1,325 131 131 131 131 2,300 2,325 231 231 231 231 1,350 134 134 134 134 2,325 2,350 234 234 234 234

350 375 36 36 36 36 1,350 1,375 136 136 136 136 2,350 2,375 236 236 236 236

400 1,375 1,400 139 139 139 139 2,375 2,400 239 239 239 239 375 400 39 39 39 39

425 1,400 1,425 141 141 141 141 2,400 2,425 241 241 241 241 425 41 41 41 41

450 44 44 44 44

1,425 1,450 144 144 144 144 2,425 2,450 244 244 244 244

450 475 46 46 46 46 1,450 1,475 146 146 146 146 2,450 2,475 246 246 246 246



550 550 54 54 54 54 1,525 1,550 154 154 154 154 2,525 2,550 254 254 254 254 575 56 56 56 56 1,550 1,575 156 156 156 156 2,550 2,575 256 256 256 256 575 600 59 59 59 59 1,575 1,600 159 159 159 159 2,575 2,600 259 259 259 259 600 500 525 51 51 51 51 1,500 1,525 151 151 151 151 2,500 2,525 251 251 251 251 525 475 500 49 49 49 49 1,475 1,500 149 149 149 149 2,475 2,500 249 249 249 249



675 675 66 66 66 66 1,650 1,675 166 166 166 166 2,650 2,675 266 266 266 266 700 69 69 69 69 1,675 1,700 169 169 169 169 2,675 2,700 269 269 269 269 700 725 71 71 71 71 1,700 1,725 171 171 171 171 2,700 2,725 271 271 271 271 725 625 650 64 64 64 64 1,625 1,650 164 164 164 164 2,625 2,650 264 264 264 264 650 625 61 61 61 61 1,600 1,625 161 161 161 161 2,600 2,625 261 261 261 261



800 800 79 79 79 79 1,775 1,800 179 179 179 179 2,775 2,800 279 279 279 279 825 81 81 81 81 1,800 1,825 181 181 181 181 2,800 2,825 281 281 281 281 825 850 84 84 84 84 1,825 1,850 184 184 184 184 2,825 2,850 284 284 284 284 850 750 775 76 76 76 76 1,750 1,775 176 176 176 176 2,750 2,775 276 276 276 276 775 750 74 74 74 74 1,725 1,750 174 174 174 174 2,725 2,750 274 274 274 274



925 925 91 91 91 91 1,900 1,925 191 191 191 191 2,900 2,925 291 291 291 291 950 94 94 94 94 1,925 1,950 194 194 194 194 2,925 2,950 294 294 294 294 1,950 950 975 96 96 96 96 1,975 196 196 196 196 2,950 2,975 296 296 296 296 975 875 900 89 89 89 89 1,875 1,900 189 189 189 189 2,875 2,900 289 289 289 289 900 875 86 86 86 86 1,850 1,875 186 186 186 186 2,850 2,875 286 286 286 286

1,000 99 99 99 99 1,975 2,000 199 199 199 199 2,975 3,000 299 299 299 299



(Continued)

* This column must also be used by a qualifying surviving spouse.



Publication 17 (2025) 111

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

3,000 6,000 9,000

3,000 3,050 303 303 303 303 6,000 6,050 603 603 603 603 9,000 9,050 903 903 903 903 3,050 3,100 308 308 308 308 6,050 6,100 608 608 608 608 9,050 9,100 908 908 908 908 3,100 3,150 313 313 313 313 6,100 6,150 613 613 613 613 9,100 9,150 913 913 913 913 3,150 3,200 318 318 318 318 6,150 6,200 618 618 618 618 9,150 9,200 918 918 918 918 3,200 3,250 323 323 323 323 6,200 6,250 623 623 623 623 9,200 9,250 923 923 923 923 3,250 3,300 328 328 328 328 6,250 6,300 628 628 628 628 9,250 9,300 928 928 928 928 3,300 3,350 333 333 333 333 6,300 6,350 633 633 633 633 9,300 9,350 933 933 933 933 3,350 3,400 338 338 338 338 6,350 6,400 638 638 638 638 9,350 9,400 938 938 938 938 3,400 3,450 343 343 343 343 6,400 6,450 643 643 643 643 9,400 9,450 943 943 943 943 3,450 3,500 348 348 348 348 6,450 6,500 648 648 648 648 9,450 9,500 948 948 948 948 3,500 3,550 353 353 353 353 6,500 6,550 653 653 653 653 9,500 9,550 953 953 953 953 3,550 3,600 358 358 358 358 6,550 6,600 658 658 658 658 9,550 9,600 958 958 958 958 3,600 3,650 363 363 363 363 6,600 6,650 663 663 663 663 9,600 9,650 963 963 963 963 3,650 3,700 368 368 368 368 6,650 6,700 668 668 668 668 9,650 9,700 968 968 968 968 3,700 3,750 373 373 373 373 6,700 6,750 673 673 673 673 9,700 9,750 973 973 973 973 3,750 3,800 378 378 378 378 6,750 6,800 678 678 678 678 9,750 9,800 978 978 978 978 3,800 3,850 383 383 383 383 6,800 6,850 683 683 683 683 9,800 9,850 983 983 983 983 3,850 3,900 388 388 388 388 6,850 6,900 688 688 688 688 9,850 9,900 988 988 988 988 3,900 3,950 393 393 393 393 6,900 6,950 693 693 693 693 9,900 9,950 993 993 993 993 3,950 4,000 398 398 398 398 6,950 7,000 698 698 698 698 9,950 10,000 998 998 998 998

4,000 7,000 10,000

4,000 4,050 403 403 403 403 7,000 7,050 703 703 703 703 10,000 10,050 1,003 1,003 1,003 1,003 4,050 4,100 408 408 408 408 7,050 7,100 708 708 708 708 10,050 10,100 1,008 1,008 1,008 1,008 4,100 4,150 413 413 413 413 7,100 7,150 713 713 713 713 10,100 10,150 1,013 1,013 1,013 1,013 4,150 4,200 418 418 418 418 7,150 7,200 718 718 718 718 10,150 10,200 1,018 1,018 1,018 1,018 4,200 4,250 423 423 423 423 7,200 7,250 723 723 723 723 10,200 10,250 1,023 1,023 1,023 1,023 4,250 4,300 428 428 428 428 7,250 7,300 728 728 728 728 10,250 10,300 1,028 1,028 1,028 1,028 4,300 4,350 433 433 433 433 7,300 7,350 733 733 733 733 10,300 10,350 1,033 1,033 1,033 1,033 4,350 4,400 438 438 438 438 7,350 7,400 738 738 738 738 10,350 10,400 1,038 1,038 1,038 1,038 4,400 4,450 443 443 443 443 7,400 7,450 743 743 743 743 10,400 10,450 1,043 1,043 1,043 1,043 4,450 4,500 448 448 448 448 7,450 7,500 748 748 748 748 10,450 10,500 1,048 1,048 1,048 1,048 4,500 4,550 453 453 453 453 7,500 7,550 753 753 753 753 10,500 10,550 1,053 1,053 1,053 1,053 4,550 4,600 458 458 458 458 7,550 7,600 758 758 758 758 10,550 10,600 1,058 1,058 1,058 1,058 4,600 4,650 463 463 463 463 7,600 7,650 763 763 763 763 10,600 10,650 1,063 1,063 1,063 1,063 4,650 4,700 468 468 468 468 7,650 7,700 768 768 768 768 10,650 10,700 1,068 1,068 1,068 1,068 4,700 4,750 473 473 473 473 7,700 7,750 773 773 773 773 10,700 10,750 1,073 1,073 1,073 1,073 4,750 4,800 478 478 478 478 7,750 7,800 778 778 778 778 10,750 10,800 1,078 1,078 1,078 1,078 4,800 4,850 483 483 483 483 7,800 7,850 783 783 783 783 10,800 10,850 1,083 1,083 1,083 1,083 4,850 4,900 488 488 488 488 7,850 7,900 788 788 788 788 10,850 10,900 1,088 1,088 1,088 1,088 4,900 4,950 493 493 493 493 7,900 7,950 793 793 793 793 10,900 10,950 1,093 1,093 1,093 1,093 4,950 5,000 498 498 498 498 7,950 8,000 798 798 798 798 10,950 11,000 1,098 1,098 1,098 1,098

5,000 8,000 11,000

5,000 5,050 503 503 503 503 8,000 8,050 803 803 803 803 11,000 11,050 1,103 1,103 1,103 1,103 5,050 5,100 508 508 508 508 8,050 8,100 808 808 808 808 11,050 11,100 1,108 1,108 1,108 1,108 5,100 5,150 513 513 513 513 8,100 8,150 813 813 813 813 11,100 11,150 1,113 1,113 1,113 1,113 5,150 5,200 518 518 518 518 8,150 8,200 818 818 818 818 11,150 11,200 1,118 1,118 1,118 1,118 5,200 5,250 523 523 523 523 8,200 8,250 823 823 823 823 11,200 11,250 1,123 1,123 1,123 1,123 5,250 5,300 528 528 528 528 8,250 8,300 828 828 828 828 11,250 11,300 1,128 1,128 1,128 1,128 5,300 5,350 533 533 533 533 8,300 8,350 833 833 833 833 11,300 11,350 1,133 1,133 1,133 1,133 5,350 5,400 538 538 538 538 8,350 8,400 838 838 838 838 11,350 11,400 1,138 1,138 1,138 1,138 5,400 5,450 543 543 543 543 8,400 8,450 843 843 843 843 11,400 11,450 1,143 1,143 1,143 1,143 5,450 5,500 548 548 548 548 8,450 8,500 848 848 848 848 11,450 11,500 1,148 1,148 1,148 1,148 5,500 5,550 553 553 553 553 8,500 8,550 853 853 853 853 11,500 11,550 1,153 1,153 1,153 1,153 5,550 5,600 558 558 558 558 8,550 8,600 858 858 858 858 11,550 11,600 1,158 1,158 1,158 1,158 5,600 5,650 563 563 563 563 8,600 8,650 863 863 863 863 11,600 11,650 1,163 1,163 1,163 1,163 5,650 5,700 568 568 568 568 8,650 8,700 868 868 868 868 11,650 11,700 1,168 1,168 1,168 1,168 5,700 5,750 573 573 573 573 8,700 8,750 873 873 873 873 11,700 11,750 1,173 1,173 1,173 1,173 5,750 5,800 578 578 578 578 8,750 8,800 878 878 878 878 11,750 11,800 1,178 1,178 1,178 1,178 5,800 5,850 583 583 583 583 8,800 8,850 883 883 883 883 11,800 11,850 1,183 1,183 1,183 1,183 5,850 5,900 588 588 588 588 8,850 8,900 888 888 888 888 11,850 11,900 1,188 1,188 1,188 1,188 5,900 5,950 593 593 593 593 8,900 8,950 893 893 893 893 11,900 11,950 1,193 1,193 1,193 1,193 5,950 6,000 598 598 598 598 8,950 9,000 898 898 898 898 11,950 12,000 1,199 1,198 1,199 1,198



(Continued)

* This column must also be used by a qualifying surviving spouse.



112 Publication 17 (2025)

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

12,000 15,000 18,000

12,000 12,050 1,205 1,203 1,205 1,203 15,000 15,050 1,565 1,503 1,565 1,503 18,000 18,050 1,925 1,803 1,925 1,823 12,050 12,100 1,211 1,208 1,211 1,208 15,050 15,100 1,571 1,508 1,571 1,508 18,050 18,100 1,931 1,808 1,931 1,829 12,100 12,150 1,217 1,213 1,217 1,213 15,100 15,150 1,577 1,513 1,577 1,513 18,100 18,150 1,937 1,813 1,937 1,835 12,150 12,200 1,223 1,218 1,223 1,218 15,150 15,200 1,583 1,518 1,583 1,518 18,150 18,200 1,943 1,818 1,943 1,841 12,200 12,250 1,229 1,223 1,229 1,223 15,200 15,250 1,589 1,523 1,589 1,523 18,200 18,250 1,949 1,823 1,949 1,847 12,250 12,300 1,235 1,228 1,235 1,228 15,250 15,300 1,595 1,528 1,595 1,528 18,250 18,300 1,955 1,828 1,955 1,853 12,300 12,350 1,241 1,233 1,241 1,233 15,300 15,350 1,601 1,533 1,601 1,533 18,300 18,350 1,961 1,833 1,961 1,859 12,350 12,400 1,247 1,238 1,247 1,238 15,350 15,400 1,607 1,538 1,607 1,538 18,350 18,400 1,967 1,838 1,967 1,865 12,400 12,450 1,253 1,243 1,253 1,243 15,400 15,450 1,613 1,543 1,613 1,543 18,400 18,450 1,973 1,843 1,973 1,871 12,450 12,500 1,259 1,248 1,259 1,248 15,450 15,500 1,619 1,548 1,619 1,548 18,450 18,500 1,979 1,848 1,979 1,877 12,500 12,550 1,265 1,253 1,265 1,253 15,500 15,550 1,625 1,553 1,625 1,553 18,500 18,550 1,985 1,853 1,985 1,883 12,550 12,600 1,271 1,258 1,271 1,258 15,550 15,600 1,631 1,558 1,631 1,558 18,550 18,600 1,991 1,858 1,991 1,889 12,600 12,650 1,277 1,263 1,277 1,263 15,600 15,650 1,637 1,563 1,637 1,563 18,600 18,650 1,997 1,863 1,997 1,895 12,650 12,700 1,283 1,268 1,283 1,268 15,650 15,700 1,643 1,568 1,643 1,568 18,650 18,700 2,003 1,868 2,003 1,901 12,700 12,750 1,289 1,273 1,289 1,273 15,700 15,750 1,649 1,573 1,649 1,573 18,700 18,750 2,009 1,873 2,009 1,907 12,750 12,800 1,295 1,278 1,295 1,278 15,750 15,800 1,655 1,578 1,655 1,578 18,750 18,800 2,015 1,878 2,015 1,913 12,800 12,850 1,301 1,283 1,301 1,283 15,800 15,850 1,661 1,583 1,661 1,583 18,800 18,850 2,021 1,883 2,021 1,919 12,850 12,900 1,307 1,288 1,307 1,288 15,850 15,900 1,667 1,588 1,667 1,588 18,850 18,900 2,027 1,888 2,027 1,925 12,900 12,950 1,313 1,293 1,313 1,293 15,900 15,950 1,673 1,593 1,673 1,593 18,900 18,950 2,033 1,893 2,033 1,931 12,950 13,000 1,319 1,298 1,319 1,298 15,950 16,000 1,679 1,598 1,679 1,598 18,950 19,000 2,039 1,898 2,039 1,937

13,000 16,000 19,000

13,000 13,050 1,325 1,303 1,325 1,303 16,000 16,050 1,685 1,603 1,685 1,603 19,000 19,050 2,045 1,903 2,045 1,943 13,050 13,100 1,331 1,308 1,331 1,308 16,050 16,100 1,691 1,608 1,691 1,608 19,050 19,100 2,051 1,908 2,051 1,949 13,100 13,150 1,337 1,313 1,337 1,313 16,100 16,150 1,697 1,613 1,697 1,613 19,100 19,150 2,057 1,913 2,057 1,955 13,150 13,200 1,343 1,318 1,343 1,318 16,150 16,200 1,703 1,618 1,703 1,618 19,150 19,200 2,063 1,918 2,063 1,961 13,200 13,250 1,349 1,323 1,349 1,323 16,200 16,250 1,709 1,623 1,709 1,623 19,200 19,250 2,069 1,923 2,069 1,967 13,250 13,300 1,355 1,328 1,355 1,328 16,250 16,300 1,715 1,628 1,715 1,628 19,250 19,300 2,075 1,928 2,075 1,973 13,300 13,350 1,361 1,333 1,361 1,333 16,300 16,350 1,721 1,633 1,721 1,633 19,300 19,350 2,081 1,933 2,081 1,979 13,350 13,400 1,367 1,338 1,367 1,338 16,350 16,400 1,727 1,638 1,727 1,638 19,350 19,400 2,087 1,938 2,087 1,985 13,400 13,450 1,373 1,343 1,373 1,343 16,400 16,450 1,733 1,643 1,733 1,643 19,400 19,450 2,093 1,943 2,093 1,991 13,450 13,500 1,379 1,348 1,379 1,348 16,450 16,500 1,739 1,648 1,739 1,648 19,450 19,500 2,099 1,948 2,099 1,997 13,500 13,550 1,385 1,353 1,385 1,353 16,500 16,550 1,745 1,653 1,745 1,653 19,500 19,550 2,105 1,953 2,105 2,003 13,550 13,600 1,391 1,358 1,391 1,358 16,550 16,600 1,751 1,658 1,751 1,658 19,550 19,600 2,111 1,958 2,111 2,009 13,600 13,650 1,397 1,363 1,397 1,363 16,600 16,650 1,757 1,663 1,757 1,663 19,600 19,650 2,117 1,963 2,117 2,015 13,650 13,700 1,403 1,368 1,403 1,368 16,650 16,700 1,763 1,668 1,763 1,668 19,650 19,700 2,123 1,968 2,123 2,021 13,700 13,750 1,409 1,373 1,409 1,373 16,700 16,750 1,769 1,673 1,769 1,673 19,700 19,750 2,129 1,973 2,129 2,027 13,750 13,800 1,415 1,378 1,415 1,378 16,750 16,800 1,775 1,678 1,775 1,678 19,750 19,800 2,135 1,978 2,135 2,033 13,800 13,850 1,421 1,383 1,421 1,383 16,800 16,850 1,781 1,683 1,781 1,683 19,800 19,850 2,141 1,983 2,141 2,039 13,850 13,900 1,427 1,388 1,427 1,388 16,850 16,900 1,787 1,688 1,787 1,688 19,850 19,900 2,147 1,988 2,147 2,045 13,900 13,950 1,433 1,393 1,433 1,393 16,900 16,950 1,793 1,693 1,793 1,693 19,900 19,950 2,153 1,993 2,153 2,051 13,950 14,000 1,439 1,398 1,439 1,398 16,950 17,000 1,799 1,698 1,799 1,698 19,950 20,000 2,159 1,998 2,159 2,057

14,000 17,000 20,000

14,000 14,050 1,445 1,403 1,445 1,403 17,000 17,050 1,805 1,703 1,805 1,703 20,000 20,050 2,165 2,003 2,165 2,063 14,050 14,100 1,451 1,408 1,451 1,408 17,050 17,100 1,811 1,708 1,811 1,709 20,050 20,100 2,171 2,008 2,171 2,069 14,100 14,150 1,457 1,413 1,457 1,413 17,100 17,150 1,817 1,713 1,817 1,715 20,100 20,150 2,177 2,013 2,177 2,075 14,150 14,200 1,463 1,418 1,463 1,418 17,150 17,200 1,823 1,718 1,823 1,721 20,150 20,200 2,183 2,018 2,183 2,081 14,200 14,250 1,469 1,423 1,469 1,423 17,200 17,250 1,829 1,723 1,829 1,727 20,200 20,250 2,189 2,023 2,189 2,087 14,250 14,300 1,475 1,428 1,475 1,428 17,250 17,300 1,835 1,728 1,835 1,733 20,250 20,300 2,195 2,028 2,195 2,093 14,300 14,350 1,481 1,433 1,481 1,433 17,300 17,350 1,841 1,733 1,841 1,739 20,300 20,350 2,201 2,033 2,201 2,099 14,350 14,400 1,487 1,438 1,487 1,438 17,350 17,400 1,847 1,738 1,847 1,745 20,350 20,400 2,207 2,038 2,207 2,105 14,400 14,450 1,493 1,443 1,493 1,443 17,400 17,450 1,853 1,743 1,853 1,751 20,400 20,450 2,213 2,043 2,213 2,111 14,450 14,500 1,499 1,448 1,499 1,448 17,450 17,500 1,859 1,748 1,859 1,757 20,450 20,500 2,219 2,048 2,219 2,117 14,500 14,550 1,505 1,453 1,505 1,453 17,500 17,550 1,865 1,753 1,865 1,763 20,500 20,550 2,225 2,053 2,225 2,123 14,550 14,600 1,511 1,458 1,511 1,458 17,550 17,600 1,871 1,758 1,871 1,769 20,550 20,600 2,231 2,058 2,231 2,129 14,600 14,650 1,517 1,463 1,517 1,463 17,600 17,650 1,877 1,763 1,877 1,775 20,600 20,650 2,237 2,063 2,237 2,135 14,650 14,700 1,523 1,468 1,523 1,468 17,650 17,700 1,883 1,768 1,883 1,781 20,650 20,700 2,243 2,068 2,243 2,141 14,700 14,750 1,529 1,473 1,529 1,473 17,700 17,750 1,889 1,773 1,889 1,787 20,700 20,750 2,249 2,073 2,249 2,147 14,750 14,800 1,535 1,478 1,535 1,478 17,750 17,800 1,895 1,778 1,895 1,793 20,750 20,800 2,255 2,078 2,255 2,153 14,800 14,850 1,541 1,483 1,541 1,483 17,800 17,850 1,901 1,783 1,901 1,799 20,800 20,850 2,261 2,083 2,261 2,159 14,850 14,900 1,547 1,488 1,547 1,488 17,850 17,900 1,907 1,788 1,907 1,805 20,850 20,900 2,267 2,088 2,267 2,165 14,900 14,950 1,553 1,493 1,553 1,493 17,900 17,950 1,913 1,793 1,913 1,811 20,900 20,950 2,273 2,093 2,273 2,171 14,950 15,000 1,559 1,498 1,559 1,498 17,950 18,000 1,919 1,798 1,919 1,817 20,950 21,000 2,279 2,098 2,279 2,177



(Continued)

* This column must also be used by a qualifying surviving spouse.



Publication 17 (2025) 113

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

21,000 24,000 27,000

21,000 21,050 2,285 2,103 2,285 2,183 24,000 24,050 2,645 2,406 2,645 2,543 27,000 27,050 3,005 2,766 3,005 2,903

21,050 21,100 2,291 2,108 2,291 2,189 24,050 24,100 2,651 2,412 2,651 2,549 27,050 27,100 3,011 2,772 3,011 2,909

21,100 21,150 2,297 2,113 2,297 2,195 24,100 24,150 2,657 2,418 2,657 2,555 27,100 27,150 3,017 2,778 3,017 2,915

21,150 21,200 2,303 2,118 2,303 2,201 24,150 24,200 2,663 2,424 2,663 2,561 27,150 27,200 3,023 2,784 3,023 2,921

21,200 21,250 2,309 2,123 2,309 2,207 24,200 24,250 2,669 2,430 2,669 2,567 27,200 27,250 3,029 2,790 3,029 2,927

21,250 21,300 2,315 2,128 2,315 2,213 24,250 24,300 2,675 2,436 2,675 2,573 27,250 27,300 3,035 2,796 3,035 2,933

21,300 21,350 2,321 2,133 2,321 2,219 24,300 24,350 2,681 2,442 2,681 2,579 27,300 27,350 3,041 2,802 3,041 2,939

21,350 21,400 2,327 2,138 2,327 2,225 24,350 24,400 2,687 2,448 2,687 2,585 27,350 27,400 3,047 2,808 3,047 2,945

21,400 21,450 2,333 2,143 2,333 2,231 24,400 24,450 2,693 2,454 2,693 2,591 27,400 27,450 3,053 2,814 3,053 2,951

21,450 21,500 2,339 2,148 2,339 2,237 24,450 24,500 2,699 2,460 2,699 2,597 27,450 27,500 3,059 2,820 3,059 2,957

21,500 21,550 2,345 2,153 2,345 2,243 24,500 24,550 2,705 2,466 2,705 2,603 27,500 27,550 3,065 2,826 3,065 2,963

21,550 21,600 2,351 2,158 2,351 2,249 24,550 24,600 2,711 2,472 2,711 2,609 27,550 27,600 3,071 2,832 3,071 2,969

21,600 21,650 2,357 2,163 2,357 2,255 24,600 24,650 2,717 2,478 2,717 2,615 27,600 27,650 3,077 2,838 3,077 2,975

21,650 21,700 2,363 2,168 2,363 2,261 24,650 24,700 2,723 2,484 2,723 2,621 27,650 27,700 3,083 2,844 3,083 2,981

21,700 21,750 2,369 2,173 2,369 2,267 24,700 24,750 2,729 2,490 2,729 2,627 27,700 27,750 3,089 2,850 3,089 2,987

21,750 21,800 2,375 2,178 2,375 2,273 24,750 24,800 2,735 2,496 2,735 2,633 27,750 27,800 3,095 2,856 3,095 2,993

21,800 21,850 2,381 2,183 2,381 2,279 24,800 24,850 2,741 2,502 2,741 2,639 27,800 27,850 3,101 2,862 3,101 2,999

21,850 21,900 2,387 2,188 2,387 2,285 24,850 24,900 2,747 2,508 2,747 2,645 27,850 27,900 3,107 2,868 3,107 3,005

21,900 21,950 2,393 2,193 2,393 2,291 24,900 24,950 2,753 2,514 2,753 2,651 27,900 27,950 3,113 2,874 3,113 3,011

21,950 22,000 2,399 2,198 2,399 2,297 24,950 25,000 2,759 2,520 2,759 2,657 27,950 28,000 3,119 2,880 3,119 3,017

22,000 25,000 28,000

22,000 22,050 2,405 2,203 2,405 2,303 25,000 25,050 2,765 2,526 2,765 2,663 28,000 28,050 3,125 2,886 3,125 3,023

22,050 22,100 2,411 2,208 2,411 2,309 25,050 25,100 2,771 2,532 2,771 2,669 28,050 28,100 3,131 2,892 3,131 3,029

22,100 22,150 2,417 2,213 2,417 2,315 25,100 25,150 2,777 2,538 2,777 2,675 28,100 28,150 3,137 2,898 3,137 3,035

22,150 22,200 2,423 2,218 2,423 2,321 25,150 25,200 2,783 2,544 2,783 2,681 28,150 28,200 3,143 2,904 3,143 3,041

22,200 22,250 2,429 2,223 2,429 2,327 25,200 25,250 2,789 2,550 2,789 2,687 28,200 28,250 3,149 2,910 3,149 3,047

22,250 22,300 2,435 2,228 2,435 2,333 25,250 25,300 2,795 2,556 2,795 2,693 28,250 28,300 3,155 2,916 3,155 3,053

22,300 22,350 2,441 2,233 2,441 2,339 25,300 25,350 2,801 2,562 2,801 2,699 28,300 28,350 3,161 2,922 3,161 3,059

22,350 22,400 2,447 2,238 2,447 2,345 25,350 25,400 2,807 2,568 2,807 2,705 28,350 28,400 3,167 2,928 3,167 3,065

22,400 22,450 2,453 2,243 2,453 2,351 25,400 25,450 2,813 2,574 2,813 2,711 28,400 28,450 3,173 2,934 3,173 3,071

22,450 22,500 2,459 2,248 2,459 2,357 25,450 25,500 2,819 2,580 2,819 2,717 28,450 28,500 3,179 2,940 3,179 3,077

22,500 22,550 2,465 2,253 2,465 2,363 25,500 25,550 2,825 2,586 2,825 2,723 28,500 28,550 3,185 2,946 3,185 3,083

22,550 22,600 2,471 2,258 2,471 2,369 25,550 25,600 2,831 2,592 2,831 2,729 28,550 28,600 3,191 2,952 3,191 3,089

22,600 22,650 2,477 2,263 2,477 2,375 25,600 25,650 2,837 2,598 2,837 2,735 28,600 28,650 3,197 2,958 3,197 3,095

22,650 22,700 2,483 2,268 2,483 2,381 25,650 25,700 2,843 2,604 2,843 2,741 28,650 28,700 3,203 2,964 3,203 3,101

22,700 22,750 2,489 2,273 2,489 2,387 25,700 25,750 2,849 2,610 2,849 2,747 28,700 28,750 3,209 2,970 3,209 3,107

22,750 22,800 2,495 2,278 2,495 2,393 25,750 25,800 2,855 2,616 2,855 2,753 28,750 28,800 3,215 2,976 3,215 3,113

22,800 22,850 2,501 2,283 2,501 2,399 25,800 25,850 2,861 2,622 2,861 2,759 28,800 28,850 3,221 2,982 3,221 3,119

22,850 22,900 2,507 2,288 2,507 2,405 25,850 25,900 2,867 2,628 2,867 2,765 28,850 28,900 3,227 2,988 3,227 3,125

22,900 22,950 2,513 2,293 2,513 2,411 25,900 25,950 2,873 2,634 2,873 2,771 28,900 28,950 3,233 2,994 3,233 3,131

22,950 23,000 2,519 2,298 2,519 2,417 25,950 26,000 2,879 2,640 2,879 2,777 28,950 29,000 3,239 3,000 3,239 3,137

23,000 26,000 29,000

23,000 23,050 2,525 2,303 2,525 2,423 26,000 26,050 2,885 2,646 2,885 2,783 29,000 29,050 3,245 3,006 3,245 3,143

23,050 23,100 2,531 2,308 2,531 2,429 26,050 26,100 2,891 2,652 2,891 2,789 29,050 29,100 3,251 3,012 3,251 3,149

23,100 23,150 2,537 2,313 2,537 2,435 26,100 26,150 2,897 2,658 2,897 2,795 29,100 29,150 3,257 3,018 3,257 3,155

23,150 23,200 2,543 2,318 2,543 2,441 26,150 26,200 2,903 2,664 2,903 2,801 29,150 29,200 3,263 3,024 3,263 3,161

23,200 23,250 2,549 2,323 2,549 2,447 26,200 26,250 2,909 2,670 2,909 2,807 29,200 29,250 3,269 3,030 3,269 3,167

23,250 23,300 2,555 2,328 2,555 2,453 26,250 26,300 2,915 2,676 2,915 2,813 29,250 29,300 3,275 3,036 3,275 3,173

23,300 23,350 2,561 2,333 2,561 2,459 26,300 26,350 2,921 2,682 2,921 2,819 29,300 29,350 3,281 3,042 3,281 3,179

23,350 23,400 2,567 2,338 2,567 2,465 26,350 26,400 2,927 2,688 2,927 2,825 29,350 29,400 3,287 3,048 3,287 3,185

23,400 23,450 2,573 2,343 2,573 2,471 26,400 26,450 2,933 2,694 2,933 2,831 29,400 29,450 3,293 3,054 3,293 3,191

23,450 23,500 2,579 2,348 2,579 2,477 26,450 26,500 2,939 2,700 2,939 2,837 29,450 29,500 3,299 3,060 3,299 3,197

23,500 23,550 2,585 2,353 2,585 2,483 26,500 26,550 2,945 2,706 2,945 2,843 29,500 29,550 3,305 3,066 3,305 3,203

23,550 23,600 2,591 2,358 2,591 2,489 26,550 26,600 2,951 2,712 2,951 2,849 29,550 29,600 3,311 3,072 3,311 3,209

23,600 23,650 2,597 2,363 2,597 2,495 26,600 26,650 2,957 2,718 2,957 2,855 29,600 29,650 3,317 3,078 3,317 3,215

23,650 23,700 2,603 2,368 2,603 2,501 26,650 26,700 2,963 2,724 2,963 2,861 29,650 29,700 3,323 3,084 3,323 3,221

23,700 23,750 2,609 2,373 2,609 2,507 26,700 26,750 2,969 2,730 2,969 2,867 29,700 29,750 3,329 3,090 3,329 3,227

23,750 23,800 2,615 2,378 2,615 2,513 26,750 26,800 2,975 2,736 2,975 2,873 29,750 29,800 3,335 3,096 3,335 3,233

23,800 23,850 2,621 2,383 2,621 2,519 26,800 26,850 2,981 2,742 2,981 2,879 29,800 29,850 3,341 3,102 3,341 3,239

23,850 23,900 2,627 2,388 2,627 2,525 26,850 26,900 2,987 2,748 2,987 2,885 29,850 29,900 3,347 3,108 3,347 3,245

23,900 23,950 2,633 2,394 2,633 2,531 26,900 26,950 2,993 2,754 2,993 2,891 29,900 29,950 3,353 3,114 3,353 3,251

23,950 24,000 2,639 2,400 2,639 2,537 26,950 27,000 2,999 2,760 2,999 2,897 29,950 30,000 3,359 3,120 3,359 3,257



(Continued)

* This column must also be used by a qualifying surviving spouse.



114 Publication 17 (2025)

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

30,000 33,000 36,000

30,000 30,050 3,365 3,126 3,365 3,263 33,000 33,050 3,725 3,486 3,725 3,623 36,000 36,050 4,085 3,846 4,085 3,983 30,050 30,100 3,371 3,132 3,371 3,269 33,050 33,100 3,731 3,492 3,731 3,629 36,050 36,100 4,091 3,852 4,091 3,989 30,100 30,150 3,377 3,138 3,377 3,275 33,100 33,150 3,737 3,498 3,737 3,635 36,100 36,150 4,097 3,858 4,097 3,995 30,150 30,200 3,383 3,144 3,383 3,281 33,150 33,200 3,743 3,504 3,743 3,641 36,150 36,200 4,103 3,864 4,103 4,001 30,200 30,250 3,389 3,150 3,389 3,287 33,200 33,250 3,749 3,510 3,749 3,647 36,200 36,250 4,109 3,870 4,109 4,007 30,250 30,300 3,395 3,156 3,395 3,293 33,250 33,300 3,755 3,516 3,755 3,653 36,250 36,300 4,115 3,876 4,115 4,013 30,300 30,350 3,401 3,162 3,401 3,299 33,300 33,350 3,761 3,522 3,761 3,659 36,300 36,350 4,121 3,882 4,121 4,019 30,350 30,400 3,407 3,168 3,407 3,305 33,350 33,400 3,767 3,528 3,767 3,665 36,350 36,400 4,127 3,888 4,127 4,025 30,400 30,450 3,413 3,174 3,413 3,311 33,400 33,450 3,773 3,534 3,773 3,671 36,400 36,450 4,133 3,894 4,133 4,031 30,450 30,500 3,419 3,180 3,419 3,317 33,450 33,500 3,779 3,540 3,779 3,677 36,450 36,500 4,139 3,900 4,139 4,037 30,500 30,550 3,425 3,186 3,425 3,323 33,500 33,550 3,785 3,546 3,785 3,683 36,500 36,550 4,145 3,906 4,145 4,043 30,550 30,600 3,431 3,192 3,431 3,329 33,550 33,600 3,791 3,552 3,791 3,689 36,550 36,600 4,151 3,912 4,151 4,049 30,600 30,650 3,437 3,198 3,437 3,335 33,600 33,650 3,797 3,558 3,797 3,695 36,600 36,650 4,157 3,918 4,157 4,055 30,650 30,700 3,443 3,204 3,443 3,341 33,650 33,700 3,803 3,564 3,803 3,701 36,650 36,700 4,163 3,924 4,163 4,061 30,700 30,750 3,449 3,210 3,449 3,347 33,700 33,750 3,809 3,570 3,809 3,707 36,700 36,750 4,169 3,930 4,169 4,067 30,750 30,800 3,455 3,216 3,455 3,353 33,750 33,800 3,815 3,576 3,815 3,713 36,750 36,800 4,175 3,936 4,175 4,073 30,800 30,850 3,461 3,222 3,461 3,359 33,800 33,850 3,821 3,582 3,821 3,719 36,800 36,850 4,181 3,942 4,181 4,079 30,850 30,900 3,467 3,228 3,467 3,365 33,850 33,900 3,827 3,588 3,827 3,725 36,850 36,900 4,187 3,948 4,187 4,085 30,900 30,950 3,473 3,234 3,473 3,371 33,900 33,950 3,833 3,594 3,833 3,731 36,900 36,950 4,193 3,954 4,193 4,091 30,950 31,000 3,479 3,240 3,479 3,377 33,950 34,000 3,839 3,600 3,839 3,737 36,950 37,000 4,199 3,960 4,199 4,097

31,000 34,000 37,000

31,000 31,050 3,485 3,246 3,485 3,383 34,000 34,050 3,845 3,606 3,845 3,743 37,000 37,050 4,205 3,966 4,205 4,103 31,050 31,100 3,491 3,252 3,491 3,389 34,050 34,100 3,851 3,612 3,851 3,749 37,050 37,100 4,211 3,972 4,211 4,109 31,100 31,150 3,497 3,258 3,497 3,395 34,100 34,150 3,857 3,618 3,857 3,755 37,100 37,150 4,217 3,978 4,217 4,115 31,150 31,200 3,503 3,264 3,503 3,401 34,150 34,200 3,863 3,624 3,863 3,761 37,150 37,200 4,223 3,984 4,223 4,121 31,200 31,250 3,509 3,270 3,509 3,407 34,200 34,250 3,869 3,630 3,869 3,767 37,200 37,250 4,229 3,990 4,229 4,127 31,250 31,300 3,515 3,276 3,515 3,413 34,250 34,300 3,875 3,636 3,875 3,773 37,250 37,300 4,235 3,996 4,235 4,133 31,300 31,350 3,521 3,282 3,521 3,419 34,300 34,350 3,881 3,642 3,881 3,779 37,300 37,350 4,241 4,002 4,241 4,139 31,350 31,400 3,527 3,288 3,527 3,425 34,350 34,400 3,887 3,648 3,887 3,785 37,350 37,400 4,247 4,008 4,247 4,145 31,400 31,450 3,533 3,294 3,533 3,431 34,400 34,450 3,893 3,654 3,893 3,791 37,400 37,450 4,253 4,014 4,253 4,151 31,450 31,500 3,539 3,300 3,539 3,437 34,450 34,500 3,899 3,660 3,899 3,797 37,450 37,500 4,259 4,020 4,259 4,157 31,500 31,550 3,545 3,306 3,545 3,443 34,500 34,550 3,905 3,666 3,905 3,803 37,500 37,550 4,265 4,026 4,265 4,163 31,550 31,600 3,551 3,312 3,551 3,449 34,550 34,600 3,911 3,672 3,911 3,809 37,550 37,600 4,271 4,032 4,271 4,169 31,600 31,650 3,557 3,318 3,557 3,455 34,600 34,650 3,917 3,678 3,917 3,815 37,600 37,650 4,277 4,038 4,277 4,175 31,650 31,700 3,563 3,324 3,563 3,461 34,650 34,700 3,923 3,684 3,923 3,821 37,650 37,700 4,283 4,044 4,283 4,181 31,700 31,750 3,569 3,330 3,569 3,467 34,700 34,750 3,929 3,690 3,929 3,827 37,700 37,750 4,289 4,050 4,289 4,187 31,750 31,800 3,575 3,336 3,575 3,473 34,750 34,800 3,935 3,696 3,935 3,833 37,750 37,800 4,295 4,056 4,295 4,193 31,800 31,850 3,581 3,342 3,581 3,479 34,800 34,850 3,941 3,702 3,941 3,839 37,800 37,850 4,301 4,062 4,301 4,199 31,850 31,900 3,587 3,348 3,587 3,485 34,850 34,900 3,947 3,708 3,947 3,845 37,850 37,900 4,307 4,068 4,307 4,205 31,900 31,950 3,593 3,354 3,593 3,491 34,900 34,950 3,953 3,714 3,953 3,851 37,900 37,950 4,313 4,074 4,313 4,211 31,950 32,000 3,599 3,360 3,599 3,497 34,950 35,000 3,959 3,720 3,959 3,857 37,950 38,000 4,319 4,080 4,319 4,217

32,000 35,000 38,000

32,000 32,050 3,605 3,366 3,605 3,503 35,000 35,050 3,965 3,726 3,965 3,863 38,000 38,050 4,325 4,086 4,325 4,223 32,050 32,100 3,611 3,372 3,611 3,509 35,050 35,100 3,971 3,732 3,971 3,869 38,050 38,100 4,331 4,092 4,331 4,229 32,100 32,150 3,617 3,378 3,617 3,515 35,100 35,150 3,977 3,738 3,977 3,875 38,100 38,150 4,337 4,098 4,337 4,235 32,150 32,200 3,623 3,384 3,623 3,521 35,150 35,200 3,983 3,744 3,983 3,881 38,150 38,200 4,343 4,104 4,343 4,241 32,200 32,250 3,629 3,390 3,629 3,527 35,200 35,250 3,989 3,750 3,989 3,887 38,200 38,250 4,349 4,110 4,349 4,247 32,250 32,300 3,635 3,396 3,635 3,533 35,250 35,300 3,995 3,756 3,995 3,893 38,250 38,300 4,355 4,116 4,355 4,253 32,300 32,350 3,641 3,402 3,641 3,539 35,300 35,350 4,001 3,762 4,001 3,899 38,300 38,350 4,361 4,122 4,361 4,259 32,350 32,400 3,647 3,408 3,647 3,545 35,350 35,400 4,007 3,768 4,007 3,905 38,350 38,400 4,367 4,128 4,367 4,265 32,400 32,450 3,653 3,414 3,653 3,551 35,400 35,450 4,013 3,774 4,013 3,911 38,400 38,450 4,373 4,134 4,373 4,271 32,450 32,500 3,659 3,420 3,659 3,557 35,450 35,500 4,019 3,780 4,019 3,917 38,450 38,500 4,379 4,140 4,379 4,277 32,500 32,550 3,665 3,426 3,665 3,563 35,500 35,550 4,025 3,786 4,025 3,923 38,500 38,550 4,385 4,146 4,385 4,283 32,550 32,600 3,671 3,432 3,671 3,569 35,550 35,600 4,031 3,792 4,031 3,929 38,550 38,600 4,391 4,152 4,391 4,289 32,600 32,650 3,677 3,438 3,677 3,575 35,600 35,650 4,037 3,798 4,037 3,935 38,600 38,650 4,397 4,158 4,397 4,295 32,650 32,700 3,683 3,444 3,683 3,581 35,650 35,700 4,043 3,804 4,043 3,941 38,650 38,700 4,403 4,164 4,403 4,301 32,700 32,750 3,689 3,450 3,689 3,587 35,700 35,750 4,049 3,810 4,049 3,947 38,700 38,750 4,409 4,170 4,409 4,307 32,750 32,800 3,695 3,456 3,695 3,593 35,750 35,800 4,055 3,816 4,055 3,953 38,750 38,800 4,415 4,176 4,415 4,313 32,800 32,850 3,701 3,462 3,701 3,599 35,800 35,850 4,061 3,822 4,061 3,959 38,800 38,850 4,421 4,182 4,421 4,319 32,850 32,900 3,707 3,468 3,707 3,605 35,850 35,900 4,067 3,828 4,067 3,965 38,850 38,900 4,427 4,188 4,427 4,325 32,900 32,950 3,713 3,474 3,713 3,611 35,900 35,950 4,073 3,834 4,073 3,971 38,900 38,950 4,433 4,194 4,433 4,331 32,950 33,000 3,719 3,480 3,719 3,617 35,950 36,000 4,079 3,840 4,079 3,977 38,950 39,000 4,439 4,200 4,439 4,337



(Continued)

* This column must also be used by a qualifying surviving spouse.



Publication 17 (2025) 115

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

39,000 42,000 45,000

39,000 39,050 4,445 4,206 4,445 4,343 42,000 42,050 4,805 4,566 4,805 4,703 45,000 45,050 5,165 4,926 5,165 5,063

39,050 39,100 4,451 4,212 4,451 4,349 42,050 42,100 4,811 4,572 4,811 4,709 45,050 45,100 5,171 4,932 5,171 5,069

39,100 39,150 4,457 4,218 4,457 4,355 42,100 42,150 4,817 4,578 4,817 4,715 45,100 45,150 5,177 4,938 5,177 5,075

39,150 39,200 4,463 4,224 4,463 4,361 42,150 42,200 4,823 4,584 4,823 4,721 45,150 45,200 5,183 4,944 5,183 5,081

39,200 39,250 4,469 4,230 4,469 4,367 42,200 42,250 4,829 4,590 4,829 4,727 45,200 45,250 5,189 4,950 5,189 5,087

39,250 39,300 4,475 4,236 4,475 4,373 42,250 42,300 4,835 4,596 4,835 4,733 45,250 45,300 5,195 4,956 5,195 5,093

39,300 39,350 4,481 4,242 4,481 4,379 42,300 42,350 4,841 4,602 4,841 4,739 45,300 45,350 5,201 4,962 5,201 5,099

39,350 39,400 4,487 4,248 4,487 4,385 42,350 42,400 4,847 4,608 4,847 4,745 45,350 45,400 5,207 4,968 5,207 5,105

39,400 39,450 4,493 4,254 4,493 4,391 42,400 42,450 4,853 4,614 4,853 4,751 45,400 45,450 5,213 4,974 5,213 5,111

39,450 39,500 4,499 4,260 4,499 4,397 42,450 42,500 4,859 4,620 4,859 4,757 45,450 45,500 5,219 4,980 5,219 5,117

39,500 39,550 4,505 4,266 4,505 4,403 42,500 42,550 4,865 4,626 4,865 4,763 45,500 45,550 5,225 4,986 5,225 5,123

39,550 39,600 4,511 4,272 4,511 4,409 42,550 42,600 4,871 4,632 4,871 4,769 45,550 45,600 5,231 4,992 5,231 5,129

39,600 39,650 4,517 4,278 4,517 4,415 42,600 42,650 4,877 4,638 4,877 4,775 45,600 45,650 5,237 4,998 5,237 5,135

39,650 39,700 4,523 4,284 4,523 4,421 42,650 42,700 4,883 4,644 4,883 4,781 45,650 45,700 5,243 5,004 5,243 5,141

39,700 39,750 4,529 4,290 4,529 4,427 42,700 42,750 4,889 4,650 4,889 4,787 45,700 45,750 5,249 5,010 5,249 5,147

39,750 39,800 4,535 4,296 4,535 4,433 42,750 42,800 4,895 4,656 4,895 4,793 45,750 45,800 5,255 5,016 5,255 5,153

39,800 39,850 4,541 4,302 4,541 4,439 42,800 42,850 4,901 4,662 4,901 4,799 45,800 45,850 5,261 5,022 5,261 5,159

39,850 39,900 4,547 4,308 4,547 4,445 42,850 42,900 4,907 4,668 4,907 4,805 45,850 45,900 5,267 5,028 5,267 5,165

39,900 39,950 4,553 4,314 4,553 4,451 42,900 42,950 4,913 4,674 4,913 4,811 45,900 45,950 5,273 5,034 5,273 5,171

39,950 40,000 4,559 4,320 4,559 4,457 42,950 43,000 4,919 4,680 4,919 4,817 45,950 46,000 5,279 5,040 5,279 5,177

40,000 43,000 46,000

40,000 40,050 4,565 4,326 4,565 4,463 43,000 43,050 4,925 4,686 4,925 4,823 46,000 46,050 5,285 5,046 5,285 5,183

40,050 40,100 4,571 4,332 4,571 4,469 43,050 43,100 4,931 4,692 4,931 4,829 46,050 46,100 5,291 5,052 5,291 5,189

40,100 40,150 4,577 4,338 4,577 4,475 43,100 43,150 4,937 4,698 4,937 4,835 46,100 46,150 5,297 5,058 5,297 5,195

40,150 40,200 4,583 4,344 4,583 4,481 43,150 43,200 4,943 4,704 4,943 4,841 46,150 46,200 5,303 5,064 5,303 5,201

40,200 40,250 4,589 4,350 4,589 4,487 43,200 43,250 4,949 4,710 4,949 4,847 46,200 46,250 5,309 5,070 5,309 5,207

40,250 40,300 4,595 4,356 4,595 4,493 43,250 43,300 4,955 4,716 4,955 4,853 46,250 46,300 5,315 5,076 5,315 5,213

40,300 40,350 4,601 4,362 4,601 4,499 43,300 43,350 4,961 4,722 4,961 4,859 46,300 46,350 5,321 5,082 5,321 5,219

40,350 40,400 4,607 4,368 4,607 4,505 43,350 43,400 4,967 4,728 4,967 4,865 46,350 46,400 5,327 5,088 5,327 5,225

40,400 40,450 4,613 4,374 4,613 4,511 43,400 43,450 4,973 4,734 4,973 4,871 46,400 46,450 5,333 5,094 5,333 5,231

40,450 40,500 4,619 4,380 4,619 4,517 43,450 43,500 4,979 4,740 4,979 4,877 46,450 46,500 5,339 5,100 5,339 5,237

40,500 40,550 4,625 4,386 4,625 4,523 43,500 43,550 4,985 4,746 4,985 4,883 46,500 46,550 5,345 5,106 5,345 5,243

40,550 40,600 4,631 4,392 4,631 4,529 43,550 43,600 4,991 4,752 4,991 4,889 46,550 46,600 5,351 5,112 5,351 5,249

40,600 40,650 4,637 4,398 4,637 4,535 43,600 43,650 4,997 4,758 4,997 4,895 46,600 46,650 5,357 5,118 5,357 5,255

40,650 40,700 4,643 4,404 4,643 4,541 43,650 43,700 5,003 4,764 5,003 4,901 46,650 46,700 5,363 5,124 5,363 5,261

40,700 40,750 4,649 4,410 4,649 4,547 43,700 43,750 5,009 4,770 5,009 4,907 46,700 46,750 5,369 5,130 5,369 5,267

40,750 40,800 4,655 4,416 4,655 4,553 43,750 43,800 5,015 4,776 5,015 4,913 46,750 46,800 5,375 5,136 5,375 5,273

40,800 40,850 4,661 4,422 4,661 4,559 43,800 43,850 5,021 4,782 5,021 4,919 46,800 46,850 5,381 5,142 5,381 5,279

40,850 40,900 4,667 4,428 4,667 4,565 43,850 43,900 5,027 4,788 5,027 4,925 46,850 46,900 5,387 5,148 5,387 5,285

40,900 40,950 4,673 4,434 4,673 4,571 43,900 43,950 5,033 4,794 5,033 4,931 46,900 46,950 5,393 5,154 5,393 5,291

40,950 41,000 4,679 4,440 4,679 4,577 43,950 44,000 5,039 4,800 5,039 4,937 46,950 47,000 5,399 5,160 5,399 5,297

41,000 44,000 47,000

41,000 41,050 4,685 4,446 4,685 4,583 44,000 44,050 5,045 4,806 5,045 4,943 47,000 47,050 5,405 5,166 5,405 5,303

41,050 41,100 4,691 4,452 4,691 4,589 44,050 44,100 5,051 4,812 5,051 4,949 47,050 47,100 5,411 5,172 5,411 5,309

41,100 41,150 4,697 4,458 4,697 4,595 44,100 44,150 5,057 4,818 5,057 4,955 47,100 47,150 5,417 5,178 5,417 5,315

41,150 41,200 4,703 4,464 4,703 4,601 44,150 44,200 5,063 4,824 5,063 4,961 47,150 47,200 5,423 5,184 5,423 5,321

41,200 41,250 4,709 4,470 4,709 4,607 44,200 44,250 5,069 4,830 5,069 4,967 47,200 47,250 5,429 5,190 5,429 5,327

41,250 41,300 4,715 4,476 4,715 4,613 44,250 44,300 5,075 4,836 5,075 4,973 47,250 47,300 5,435 5,196 5,435 5,333

41,300 41,350 4,721 4,482 4,721 4,619 44,300 44,350 5,081 4,842 5,081 4,979 47,300 47,350 5,441 5,202 5,441 5,339

41,350 41,400 4,727 4,488 4,727 4,625 44,350 44,400 5,087 4,848 5,087 4,985 47,350 47,400 5,447 5,208 5,447 5,345

41,400 41,450 4,733 4,494 4,733 4,631 44,400 44,450 5,093 4,854 5,093 4,991 47,400 47,450 5,453 5,214 5,453 5,351

41,450 41,500 4,739 4,500 4,739 4,637 44,450 44,500 5,099 4,860 5,099 4,997 47,450 47,500 5,459 5,220 5,459 5,357

41,500 41,550 4,745 4,506 4,745 4,643 44,500 44,550 5,105 4,866 5,105 5,003 47,500 47,550 5,465 5,226 5,465 5,363

41,550 41,600 4,751 4,512 4,751 4,649 44,550 44,600 5,111 4,872 5,111 5,009 47,550 47,600 5,471 5,232 5,471 5,369

41,600 41,650 4,757 4,518 4,757 4,655 44,600 44,650 5,117 4,878 5,117 5,015 47,600 47,650 5,477 5,238 5,477 5,375

41,650 41,700 4,763 4,524 4,763 4,661 44,650 44,700 5,123 4,884 5,123 5,021 47,650 47,700 5,483 5,244 5,483 5,381

41,700 41,750 4,769 4,530 4,769 4,667 44,700 44,750 5,129 4,890 5,129 5,027 47,700 47,750 5,489 5,250 5,489 5,387

41,750 41,800 4,775 4,536 4,775 4,673 44,750 44,800 5,135 4,896 5,135 5,033 47,750 47,800 5,495 5,256 5,495 5,393

41,800 41,850 4,781 4,542 4,781 4,679 44,800 44,850 5,141 4,902 5,141 5,039 47,800 47,850 5,501 5,262 5,501 5,399

41,850 41,900 4,787 4,548 4,787 4,685 44,850 44,900 5,147 4,908 5,147 5,045 47,850 47,900 5,507 5,268 5,507 5,405

41,900 41,950 4,793 4,554 4,793 4,691 44,900 44,950 5,153 4,914 5,153 5,051 47,900 47,950 5,513 5,274 5,513 5,411

41,950 42,000 4,799 4,560 4,799 4,697 44,950 45,000 5,159 4,920 5,159 5,057 47,950 48,000 5,519 5,280 5,519 5,417



(Continued)

* This column must also be used by a qualifying surviving spouse.



116 Publication 17 (2025)

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

48,000 51,000 54,000

48,000 48,050 5,525 5,286 5,525 5,423 51,000 51,050 6,140 5,646 6,140 5,783 54,000 54,050 6,800 6,006 6,800 6,143 48,050 48,100 5,531 5,292 5,531 5,429 51,050 51,100 6,151 5,652 6,151 5,789 54,050 54,100 6,811 6,012 6,811 6,149 48,100 48,150 5,537 5,298 5,537 5,435 51,100 51,150 6,162 5,658 6,162 5,795 54,100 54,150 6,822 6,018 6,822 6,155 48,150 48,200 5,543 5,304 5,543 5,441 51,150 51,200 6,173 5,664 6,173 5,801 54,150 54,200 6,833 6,024 6,833 6,161 48,200 48,250 5,549 5,310 5,549 5,447 51,200 51,250 6,184 5,670 6,184 5,807 54,200 54,250 6,844 6,030 6,844 6,167 48,250 48,300 5,555 5,316 5,555 5,453 51,250 51,300 6,195 5,676 6,195 5,813 54,250 54,300 6,855 6,036 6,855 6,173 48,300 48,350 5,561 5,322 5,561 5,459 51,300 51,350 6,206 5,682 6,206 5,819 54,300 54,350 6,866 6,042 6,866 6,179 48,350 48,400 5,567 5,328 5,567 5,465 51,350 51,400 6,217 5,688 6,217 5,825 54,350 54,400 6,877 6,048 6,877 6,185 48,400 48,450 5,573 5,334 5,573 5,471 51,400 51,450 6,228 5,694 6,228 5,831 54,400 54,450 6,888 6,054 6,888 6,191 48,450 48,500 5,579 5,340 5,579 5,477 51,450 51,500 6,239 5,700 6,239 5,837 54,450 54,500 6,899 6,060 6,899 6,197 48,500 48,550 5,590 5,346 5,590 5,483 51,500 51,550 6,250 5,706 6,250 5,843 54,500 54,550 6,910 6,066 6,910 6,203 48,550 48,600 5,601 5,352 5,601 5,489 51,550 51,600 6,261 5,712 6,261 5,849 54,550 54,600 6,921 6,072 6,921 6,209 48,600 48,650 5,612 5,358 5,612 5,495 51,600 51,650 6,272 5,718 6,272 5,855 54,600 54,650 6,932 6,078 6,932 6,215 48,650 48,700 5,623 5,364 5,623 5,501 51,650 51,700 6,283 5,724 6,283 5,861 54,650 54,700 6,943 6,084 6,943 6,221 48,700 48,750 5,634 5,370 5,634 5,507 51,700 51,750 6,294 5,730 6,294 5,867 54,700 54,750 6,954 6,090 6,954 6,227 48,750 48,800 5,645 5,376 5,645 5,513 51,750 51,800 6,305 5,736 6,305 5,873 54,750 54,800 6,965 6,096 6,965 6,233 48,800 48,850 5,656 5,382 5,656 5,519 51,800 51,850 6,316 5,742 6,316 5,879 54,800 54,850 6,976 6,102 6,976 6,239 48,850 48,900 5,667 5,388 5,667 5,525 51,850 51,900 6,327 5,748 6,327 5,885 54,850 54,900 6,987 6,108 6,987 6,245 48,900 48,950 5,678 5,394 5,678 5,531 51,900 51,950 6,338 5,754 6,338 5,891 54,900 54,950 6,998 6,114 6,998 6,251 48,950 49,000 5,689 5,400 5,689 5,537 51,950 52,000 6,349 5,760 6,349 5,897 54,950 55,000 7,009 6,120 7,009 6,257

49,000 52,000 55,000

49,000 49,050 5,700 5,406 5,700 5,543 52,000 52,050 6,360 5,766 6,360 5,903 55,000 55,050 7,020 6,126 7,020 6,263 49,050 49,100 5,711 5,412 5,711 5,549 52,050 52,100 6,371 5,772 6,371 5,909 55,050 55,100 7,031 6,132 7,031 6,269 49,100 49,150 5,722 5,418 5,722 5,555 52,100 52,150 6,382 5,778 6,382 5,915 55,100 55,150 7,042 6,138 7,042 6,275 49,150 49,200 5,733 5,424 5,733 5,561 52,150 52,200 6,393 5,784 6,393 5,921 55,150 55,200 7,053 6,144 7,053 6,281 49,200 49,250 5,744 5,430 5,744 5,567 52,200 52,250 6,404 5,790 6,404 5,927 55,200 55,250 7,064 6,150 7,064 6,287 49,250 49,300 5,755 5,436 5,755 5,573 52,250 52,300 6,415 5,796 6,415 5,933 55,250 55,300 7,075 6,156 7,075 6,293 49,300 49,350 5,766 5,442 5,766 5,579 52,300 52,350 6,426 5,802 6,426 5,939 55,300 55,350 7,086 6,162 7,086 6,299 49,350 49,400 5,777 5,448 5,777 5,585 52,350 52,400 6,437 5,808 6,437 5,945 55,350 55,400 7,097 6,168 7,097 6,305 49,400 49,450 5,788 5,454 5,788 5,591 52,400 52,450 6,448 5,814 6,448 5,951 55,400 55,450 7,108 6,174 7,108 6,311 49,450 49,500 5,799 5,460 5,799 5,597 52,450 52,500 6,459 5,820 6,459 5,957 55,450 55,500 7,119 6,180 7,119 6,317 49,500 49,550 5,810 5,466 5,810 5,603 52,500 52,550 6,470 5,826 6,470 5,963 55,500 55,550 7,130 6,186 7,130 6,323 49,550 49,600 5,821 5,472 5,821 5,609 52,550 52,600 6,481 5,832 6,481 5,969 55,550 55,600 7,141 6,192 7,141 6,329 49,600 49,650 5,832 5,478 5,832 5,615 52,600 52,650 6,492 5,838 6,492 5,975 55,600 55,650 7,152 6,198 7,152 6,335 49,650 49,700 5,843 5,484 5,843 5,621 52,650 52,700 6,503 5,844 6,503 5,981 55,650 55,700 7,163 6,204 7,163 6,341 49,700 49,750 5,854 5,490 5,854 5,627 52,700 52,750 6,514 5,850 6,514 5,987 55,700 55,750 7,174 6,210 7,174 6,347 49,750 49,800 5,865 5,496 5,865 5,633 52,750 52,800 6,525 5,856 6,525 5,993 55,750 55,800 7,185 6,216 7,185 6,353 49,800 49,850 5,876 5,502 5,876 5,639 52,800 52,850 6,536 5,862 6,536 5,999 55,800 55,850 7,196 6,222 7,196 6,359 49,850 49,900 5,887 5,508 5,887 5,645 52,850 52,900 6,547 5,868 6,547 6,005 55,850 55,900 7,207 6,228 7,207 6,365 49,900 49,950 5,898 5,514 5,898 5,651 52,900 52,950 6,558 5,874 6,558 6,011 55,900 55,950 7,218 6,234 7,218 6,371 49,950 50,000 5,909 5,520 5,909 5,657 52,950 53,000 6,569 5,880 6,569 6,017 55,950 56,000 7,229 6,240 7,229 6,377

50,000 53,000 56,000

50,000 50,050 5,920 5,526 5,920 5,663 53,000 53,050 6,580 5,886 6,580 6,023 56,000 56,050 7,240 6,246 7,240 6,383 50,050 50,100 5,931 5,532 5,931 5,669 53,050 53,100 6,591 5,892 6,591 6,029 56,050 56,100 7,251 6,252 7,251 6,389 50,100 50,150 5,942 5,538 5,942 5,675 53,100 53,150 6,602 5,898 6,602 6,035 56,100 56,150 7,262 6,258 7,262 6,395 50,150 50,200 5,953 5,544 5,953 5,681 53,150 53,200 6,613 5,904 6,613 6,041 56,150 56,200 7,273 6,264 7,273 6,401 50,200 50,250 5,964 5,550 5,964 5,687 53,200 53,250 6,624 5,910 6,624 6,047 56,200 56,250 7,284 6,270 7,284 6,407 50,250 50,300 5,975 5,556 5,975 5,693 53,250 53,300 6,635 5,916 6,635 6,053 56,250 56,300 7,295 6,276 7,295 6,413 50,300 50,350 5,986 5,562 5,986 5,699 53,300 53,350 6,646 5,922 6,646 6,059 56,300 56,350 7,306 6,282 7,306 6,419 50,350 50,400 5,997 5,568 5,997 5,705 53,350 53,400 6,657 5,928 6,657 6,065 56,350 56,400 7,317 6,288 7,317 6,425 50,400 50,450 6,008 5,574 6,008 5,711 53,400 53,450 6,668 5,934 6,668 6,071 56,400 56,450 7,328 6,294 7,328 6,431 50,450 50,500 6,019 5,580 6,019 5,717 53,450 53,500 6,679 5,940 6,679 6,077 56,450 56,500 7,339 6,300 7,339 6,437 50,500 50,550 6,030 5,586 6,030 5,723 53,500 53,550 6,690 5,946 6,690 6,083 56,500 56,550 7,350 6,306 7,350 6,443 50,550 50,600 6,041 5,592 6,041 5,729 53,550 53,600 6,701 5,952 6,701 6,089 56,550 56,600 7,361 6,312 7,361 6,449 50,600 50,650 6,052 5,598 6,052 5,735 53,600 53,650 6,712 5,958 6,712 6,095 56,600 56,650 7,372 6,318 7,372 6,455 50,650 50,700 6,063 5,604 6,063 5,741 53,650 53,700 6,723 5,964 6,723 6,101 56,650 56,700 7,383 6,324 7,383 6,461 50,700 50,750 6,074 5,610 6,074 5,747 53,700 53,750 6,734 5,970 6,734 6,107 56,700 56,750 7,394 6,330 7,394 6,467 50,750 50,800 6,085 5,616 6,085 5,753 53,750 53,800 6,745 5,976 6,745 6,113 56,750 56,800 7,405 6,336 7,405 6,473 50,800 50,850 6,096 5,622 6,096 5,759 53,800 53,850 6,756 5,982 6,756 6,119 56,800 56,850 7,416 6,342 7,416 6,479 50,850 50,900 6,107 5,628 6,107 5,765 53,850 53,900 6,767 5,988 6,767 6,125 56,850 56,900 7,427 6,348 7,427 6,485 50,900 50,950 6,118 5,634 6,118 5,771 53,900 53,950 6,778 5,994 6,778 6,131 56,900 56,950 7,438 6,354 7,438 6,491 50,950 51,000 6,129 5,640 6,129 5,777 53,950 54,000 6,789 6,000 6,789 6,137 56,950 57,000 7,449 6,360 7,449 6,497



(Continued)

* This column must also be used by a qualifying surviving spouse.



Publication 17 (2025) 117

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

57,000 60,000 63,000

57,000 57,050 7,460 6,366 7,460 6,503 60,000 60,050 8,120 6,726 8,120 6,863 63,000 63,050 8,780 7,086 8,780 7,223

57,050 57,100 7,471 6,372 7,471 6,509 60,050 60,100 8,131 6,732 8,131 6,869 63,050 63,100 8,791 7,092 8,791 7,229

57,100 57,150 7,482 6,378 7,482 6,515 60,100 60,150 8,142 6,738 8,142 6,875 63,100 63,150 8,802 7,098 8,802 7,235

57,150 57,200 7,493 6,384 7,493 6,521 60,150 60,200 8,153 6,744 8,153 6,881 63,150 63,200 8,813 7,104 8,813 7,241

57,200 57,250 7,504 6,390 7,504 6,527 60,200 60,250 8,164 6,750 8,164 6,887 63,200 63,250 8,824 7,110 8,824 7,247

57,250 57,300 7,515 6,396 7,515 6,533 60,250 60,300 8,175 6,756 8,175 6,893 63,250 63,300 8,835 7,116 8,835 7,253

57,300 57,350 7,526 6,402 7,526 6,539 60,300 60,350 8,186 6,762 8,186 6,899 63,300 63,350 8,846 7,122 8,846 7,259

57,350 57,400 7,537 6,408 7,537 6,545 60,350 60,400 8,197 6,768 8,197 6,905 63,350 63,400 8,857 7,128 8,857 7,265

57,400 57,450 7,548 6,414 7,548 6,551 60,400 60,450 8,208 6,774 8,208 6,911 63,400 63,450 8,868 7,134 8,868 7,271

57,450 57,500 7,559 6,420 7,559 6,557 60,450 60,500 8,219 6,780 8,219 6,917 63,450 63,500 8,879 7,140 8,879 7,277

57,500 57,550 7,570 6,426 7,570 6,563 60,500 60,550 8,230 6,786 8,230 6,923 63,500 63,550 8,890 7,146 8,890 7,283

57,550 57,600 7,581 6,432 7,581 6,569 60,550 60,600 8,241 6,792 8,241 6,929 63,550 63,600 8,901 7,152 8,901 7,289

57,600 57,650 7,592 6,438 7,592 6,575 60,600 60,650 8,252 6,798 8,252 6,935 63,600 63,650 8,912 7,158 8,912 7,295

57,650 57,700 7,603 6,444 7,603 6,581 60,650 60,700 8,263 6,804 8,263 6,941 63,650 63,700 8,923 7,164 8,923 7,301

57,700 57,750 7,614 6,450 7,614 6,587 60,700 60,750 8,274 6,810 8,274 6,947 63,700 63,750 8,934 7,170 8,934 7,307

57,750 57,800 7,625 6,456 7,625 6,593 60,750 60,800 8,285 6,816 8,285 6,953 63,750 63,800 8,945 7,176 8,945 7,313

57,800 57,850 7,636 6,462 7,636 6,599 60,800 60,850 8,296 6,822 8,296 6,959 63,800 63,850 8,956 7,182 8,956 7,319

57,850 57,900 7,647 6,468 7,647 6,605 60,850 60,900 8,307 6,828 8,307 6,965 63,850 63,900 8,967 7,188 8,967 7,325

57,900 57,950 7,658 6,474 7,658 6,611 60,900 60,950 8,318 6,834 8,318 6,971 63,900 63,950 8,978 7,194 8,978 7,331

57,950 58,000 7,669 6,480 7,669 6,617 60,950 61,000 8,329 6,840 8,329 6,977 63,950 64,000 8,989 7,200 8,989 7,337

58,000 61,000 64,000

58,000 58,050 7,680 6,486 7,680 6,623 61,000 61,050 8,340 6,846 8,340 6,983 64,000 64,050 9,000 7,206 9,000 7,343

58,050 58,100 7,691 6,492 7,691 6,629 61,050 61,100 8,351 6,852 8,351 6,989 64,050 64,100 9,011 7,212 9,011 7,349

58,100 58,150 7,702 6,498 7,702 6,635 61,100 61,150 8,362 6,858 8,362 6,995 64,100 64,150 9,022 7,218 9,022 7,355

58,150 58,200 7,713 6,504 7,713 6,641 61,150 61,200 8,373 6,864 8,373 7,001 64,150 64,200 9,033 7,224 9,033 7,361

58,200 58,250 7,724 6,510 7,724 6,647 61,200 61,250 8,384 6,870 8,384 7,007 64,200 64,250 9,044 7,230 9,044 7,367

58,250 58,300 7,735 6,516 7,735 6,653 61,250 61,300 8,395 6,876 8,395 7,013 64,250 64,300 9,055 7,236 9,055 7,373

58,300 58,350 7,746 6,522 7,746 6,659 61,300 61,350 8,406 6,882 8,406 7,019 64,300 64,350 9,066 7,242 9,066 7,379

58,350 58,400 7,757 6,528 7,757 6,665 61,350 61,400 8,417 6,888 8,417 7,025 64,350 64,400 9,077 7,248 9,077 7,385

58,400 58,450 7,768 6,534 7,768 6,671 61,400 61,450 8,428 6,894 8,428 7,031 64,400 64,450 9,088 7,254 9,088 7,391

58,450 58,500 7,779 6,540 7,779 6,677 61,450 61,500 8,439 6,900 8,439 7,037 64,450 64,500 9,099 7,260 9,099 7,397

58,500 58,550 7,790 6,546 7,790 6,683 61,500 61,550 8,450 6,906 8,450 7,043 64,500 64,550 9,110 7,266 9,110 7,403

58,550 58,600 7,801 6,552 7,801 6,689 61,550 61,600 8,461 6,912 8,461 7,049 64,550 64,600 9,121 7,272 9,121 7,409

58,600 58,650 7,812 6,558 7,812 6,695 61,600 61,650 8,472 6,918 8,472 7,055 64,600 64,650 9,132 7,278 9,132 7,415

58,650 58,700 7,823 6,564 7,823 6,701 61,650 61,700 8,483 6,924 8,483 7,061 64,650 64,700 9,143 7,284 9,143 7,421

58,700 58,750 7,834 6,570 7,834 6,707 61,700 61,750 8,494 6,930 8,494 7,067 64,700 64,750 9,154 7,290 9,154 7,427

58,750 58,800 7,845 6,576 7,845 6,713 61,750 61,800 8,505 6,936 8,505 7,073 64,750 64,800 9,165 7,296 9,165 7,433

58,800 58,850 7,856 6,582 7,856 6,719 61,800 61,850 8,516 6,942 8,516 7,079 64,800 64,850 9,176 7,302 9,176 7,439

58,850 58,900 7,867 6,588 7,867 6,725 61,850 61,900 8,527 6,948 8,527 7,085 64,850 64,900 9,187 7,308 9,187 7,448

58,900 58,950 7,878 6,594 7,878 6,731 61,900 61,950 8,538 6,954 8,538 7,091 64,900 64,950 9,198 7,314 9,198 7,459

58,950 59,000 7,889 6,600 7,889 6,737 61,950 62,000 8,549 6,960 8,549 7,097 64,950 65,000 9,209 7,320 9,209 7,470

59,000 62,000 65,000

59,000 59,050 7,900 6,606 7,900 6,743 62,000 62,050 8,560 6,966 8,560 7,103 65,000 65,050 9,220 7,326 9,220 7,481

59,050 59,100 7,911 6,612 7,911 6,749 62,050 62,100 8,571 6,972 8,571 7,109 65,050 65,100 9,231 7,332 9,231 7,492

59,100 59,150 7,922 6,618 7,922 6,755 62,100 62,150 8,582 6,978 8,582 7,115 65,100 65,150 9,242 7,338 9,242 7,503

59,150 59,200 7,933 6,624 7,933 6,761 62,150 62,200 8,593 6,984 8,593 7,121 65,150 65,200 9,253 7,344 9,253 7,514

59,200 59,250 7,944 6,630 7,944 6,767 62,200 62,250 8,604 6,990 8,604 7,127 65,200 65,250 9,264 7,350 9,264 7,525

59,250 59,300 7,955 6,636 7,955 6,773 62,250 62,300 8,615 6,996 8,615 7,133 65,250 65,300 9,275 7,356 9,275 7,536

59,300 59,350 7,966 6,642 7,966 6,779 62,300 62,350 8,626 7,002 8,626 7,139 65,300 65,350 9,286 7,362 9,286 7,547

59,350 59,400 7,977 6,648 7,977 6,785 62,350 62,400 8,637 7,008 8,637 7,145 65,350 65,400 9,297 7,368 9,297 7,558

59,400 59,450 7,988 6,654 7,988 6,791 62,400 62,450 8,648 7,014 8,648 7,151 65,400 65,450 9,308 7,374 9,308 7,569

59,450 59,500 7,999 6,660 7,999 6,797 62,450 62,500 8,659 7,020 8,659 7,157 65,450 65,500 9,319 7,380 9,319 7,580

59,500 59,550 8,010 6,666 8,010 6,803 62,500 62,550 8,670 7,026 8,670 7,163 65,500 65,550 9,330 7,386 9,330 7,591

59,550 59,600 8,021 6,672 8,021 6,809 62,550 62,600 8,681 7,032 8,681 7,169 65,550 65,600 9,341 7,392 9,341 7,602

59,600 59,650 8,032 6,678 8,032 6,815 62,600 62,650 8,692 7,038 8,692 7,175 65,600 65,650 9,352 7,398 9,352 7,613

59,650 59,700 8,043 6,684 8,043 6,821 62,650 62,700 8,703 7,044 8,703 7,181 65,650 65,700 9,363 7,404 9,363 7,624

59,700 59,750 8,054 6,690 8,054 6,827 62,700 62,750 8,714 7,050 8,714 7,187 65,700 65,750 9,374 7,410 9,374 7,635

59,750 59,800 8,065 6,696 8,065 6,833 62,750 62,800 8,725 7,056 8,725 7,193 65,750 65,800 9,385 7,416 9,385 7,646

59,800 59,850 8,076 6,702 8,076 6,839 62,800 62,850 8,736 7,062 8,736 7,199 65,800 65,850 9,396 7,422 9,396 7,657

59,850 59,900 8,087 6,708 8,087 6,845 62,850 62,900 8,747 7,068 8,747 7,205 65,850 65,900 9,407 7,428 9,407 7,668

59,900 59,950 8,098 6,714 8,098 6,851 62,900 62,950 8,758 7,074 8,758 7,211 65,900 65,950 9,418 7,434 9,418 7,679

59,950 60,000 8,109 6,720 8,109 6,857 62,950 63,000 8,769 7,080 8,769 7,217 65,950 66,000 9,429 7,440 9,429 7,690



(Continued)

* This column must also be used by a qualifying surviving spouse.



118 Publication 17 (2025)

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

66,000 69,000 72,000

66,000 66,050 9,440 7,446 9,440 7,701 69,000 69,050 10,100 7,806 10,100 8,361 72,000 72,050 10,760 8,166 10,760 9,021 66,050 66,100 9,451 7,452 9,451 7,712 69,050 69,100 10,111 7,812 10,111 8,372 72,050 72,100 10,771 8,172 10,771 9,032 66,100 66,150 9,462 7,458 9,462 7,723 69,100 69,150 10,122 7,818 10,122 8,383 72,100 72,150 10,782 8,178 10,782 9,043 66,150 66,200 9,473 7,464 9,473 7,734 69,150 69,200 10,133 7,824 10,133 8,394 72,150 72,200 10,793 8,184 10,793 9,054 66,200 66,250 9,484 7,470 9,484 7,745 69,200 69,250 10,144 7,830 10,144 8,405 72,200 72,250 10,804 8,190 10,804 9,065 66,250 66,300 9,495 7,476 9,495 7,756 69,250 69,300 10,155 7,836 10,155 8,416 72,250 72,300 10,815 8,196 10,815 9,076 66,300 66,350 9,506 7,482 9,506 7,767 69,300 69,350 10,166 7,842 10,166 8,427 72,300 72,350 10,826 8,202 10,826 9,087 66,350 66,400 9,517 7,488 9,517 7,778 69,350 69,400 10,177 7,848 10,177 8,438 72,350 72,400 10,837 8,208 10,837 9,098 66,400 66,450 9,528 7,494 9,528 7,789 69,400 69,450 10,188 7,854 10,188 8,449 72,400 72,450 10,848 8,214 10,848 9,109 66,450 66,500 9,539 7,500 9,539 7,800 69,450 69,500 10,199 7,860 10,199 8,460 72,450 72,500 10,859 8,220 10,859 9,120 66,500 66,550 9,550 7,506 9,550 7,811 69,500 69,550 10,210 7,866 10,210 8,471 72,500 72,550 10,870 8,226 10,870 9,131 66,550 66,600 9,561 7,512 9,561 7,822 69,550 69,600 10,221 7,872 10,221 8,482 72,550 72,600 10,881 8,232 10,881 9,142 66,600 66,650 9,572 7,518 9,572 7,833 69,600 69,650 10,232 7,878 10,232 8,493 72,600 72,650 10,892 8,238 10,892 9,153 66,650 66,700 9,583 7,524 9,583 7,844 69,650 69,700 10,243 7,884 10,243 8,504 72,650 72,700 10,903 8,244 10,903 9,164 66,700 66,750 9,594 7,530 9,594 7,855 69,700 69,750 10,254 7,890 10,254 8,515 72,700 72,750 10,914 8,250 10,914 9,175 66,750 66,800 9,605 7,536 9,605 7,866 69,750 69,800 10,265 7,896 10,265 8,526 72,750 72,800 10,925 8,256 10,925 9,186 66,800 66,850 9,616 7,542 9,616 7,877 69,800 69,850 10,276 7,902 10,276 8,537 72,800 72,850 10,936 8,262 10,936 9,197 66,850 66,900 9,627 7,548 9,627 7,888 69,850 69,900 10,287 7,908 10,287 8,548 72,850 72,900 10,947 8,268 10,947 9,208 66,900 66,950 9,638 7,554 9,638 7,899 69,900 69,950 10,298 7,914 10,298 8,559 72,900 72,950 10,958 8,274 10,958 9,219 66,950 67,000 9,649 7,560 9,649 7,910 69,950 70,000 10,309 7,920 10,309 8,570 72,950 73,000 10,969 8,280 10,969 9,230

67,000 70,000 73,000

67,000 67,050 9,660 7,566 9,660 7,921 70,000 70,050 10,320 7,926 10,320 8,581 73,000 73,050 10,980 8,286 10,980 9,241 67,050 67,100 9,671 7,572 9,671 7,932 70,050 70,100 10,331 7,932 10,331 8,592 73,050 73,100 10,991 8,292 10,991 9,252 67,100 67,150 9,682 7,578 9,682 7,943 70,100 70,150 10,342 7,938 10,342 8,603 73,100 73,150 11,002 8,298 11,002 9,263 67,150 67,200 9,693 7,584 9,693 7,954 70,150 70,200 10,353 7,944 10,353 8,614 73,150 73,200 11,013 8,304 11,013 9,274 67,200 67,250 9,704 7,590 9,704 7,965 70,200 70,250 10,364 7,950 10,364 8,625 73,200 73,250 11,024 8,310 11,024 9,285 67,250 67,300 9,715 7,596 9,715 7,976 70,250 70,300 10,375 7,956 10,375 8,636 73,250 73,300 11,035 8,316 11,035 9,296 67,300 67,350 9,726 7,602 9,726 7,987 70,300 70,350 10,386 7,962 10,386 8,647 73,300 73,350 11,046 8,322 11,046 9,307 67,350 67,400 9,737 7,608 9,737 7,998 70,350 70,400 10,397 7,968 10,397 8,658 73,350 73,400 11,057 8,328 11,057 9,318 67,400 67,450 9,748 7,614 9,748 8,009 70,400 70,450 10,408 7,974 10,408 8,669 73,400 73,450 11,068 8,334 11,068 9,329 67,450 67,500 9,759 7,620 9,759 8,020 70,450 70,500 10,419 7,980 10,419 8,680 73,450 73,500 11,079 8,340 11,079 9,340 67,500 67,550 9,770 7,626 9,770 8,031 70,500 70,550 10,430 7,986 10,430 8,691 73,500 73,550 11,090 8,346 11,090 9,351 67,550 67,600 9,781 7,632 9,781 8,042 70,550 70,600 10,441 7,992 10,441 8,702 73,550 73,600 11,101 8,352 11,101 9,362 67,600 67,650 9,792 7,638 9,792 8,053 70,600 70,650 10,452 7,998 10,452 8,713 73,600 73,650 11,112 8,358 11,112 9,373 67,650 67,700 9,803 7,644 9,803 8,064 70,650 70,700 10,463 8,004 10,463 8,724 73,650 73,700 11,123 8,364 11,123 9,384 67,700 67,750 9,814 7,650 9,814 8,075 70,700 70,750 10,474 8,010 10,474 8,735 73,700 73,750 11,134 8,370 11,134 9,395 67,750 67,800 9,825 7,656 9,825 8,086 70,750 70,800 10,485 8,016 10,485 8,746 73,750 73,800 11,145 8,376 11,145 9,406 67,800 67,850 9,836 7,662 9,836 8,097 70,800 70,850 10,496 8,022 10,496 8,757 73,800 73,850 11,156 8,382 11,156 9,417 67,850 67,900 9,847 7,668 9,847 8,108 70,850 70,900 10,507 8,028 10,507 8,768 73,850 73,900 11,167 8,388 11,167 9,428 67,900 67,950 9,858 7,674 9,858 8,119 70,900 70,950 10,518 8,034 10,518 8,779 73,900 73,950 11,178 8,394 11,178 9,439 67,950 68,000 9,869 7,680 9,869 8,130 70,950 71,000 10,529 8,040 10,529 8,790 73,950 74,000 11,189 8,400 11,189 9,450

68,000 71,000 74,000

68,000 68,050 9,880 7,686 9,880 8,141 71,000 71,050 10,540 8,046 10,540 8,801 74,000 74,050 11,200 8,406 11,200 9,461 68,050 68,100 9,891 7,692 9,891 8,152 71,050 71,100 10,551 8,052 10,551 8,812 74,050 74,100 11,211 8,412 11,211 9,472 68,100 68,150 9,902 7,698 9,902 8,163 71,100 71,150 10,562 8,058 10,562 8,823 74,100 74,150 11,222 8,418 11,222 9,483 68,150 68,200 9,913 7,704 9,913 8,174 71,150 71,200 10,573 8,064 10,573 8,834 74,150 74,200 11,233 8,424 11,233 9,494 68,200 68,250 9,924 7,710 9,924 8,185 71,200 71,250 10,584 8,070 10,584 8,845 74,200 74,250 11,244 8,430 11,244 9,505 68,250 68,300 9,935 7,716 9,935 8,196 71,250 71,300 10,595 8,076 10,595 8,856 74,250 74,300 11,255 8,436 11,255 9,516 68,300 68,350 9,946 7,722 9,946 8,207 71,300 71,350 10,606 8,082 10,606 8,867 74,300 74,350 11,266 8,442 11,266 9,527 68,350 68,400 9,957 7,728 9,957 8,218 71,350 71,400 10,617 8,088 10,617 8,878 74,350 74,400 11,277 8,448 11,277 9,538 68,400 68,450 9,968 7,734 9,968 8,229 71,400 71,450 10,628 8,094 10,628 8,889 74,400 74,450 11,288 8,454 11,288 9,549 68,450 68,500 9,979 7,740 9,979 8,240 71,450 71,500 10,639 8,100 10,639 8,900 74,450 74,500 11,299 8,460 11,299 9,560 68,500 68,550 9,990 7,746 9,990 8,251 71,500 71,550 10,650 8,106 10,650 8,911 74,500 74,550 11,310 8,466 11,310 9,571 68,550 68,600 10,001 7,752 10,001 8,262 71,550 71,600 10,661 8,112 10,661 8,922 74,550 74,600 11,321 8,472 11,321 9,582 68,600 68,650 10,012 7,758 10,012 8,273 71,600 71,650 10,672 8,118 10,672 8,933 74,600 74,650 11,332 8,478 11,332 9,593 68,650 68,700 10,023 7,764 10,023 8,284 71,650 71,700 10,683 8,124 10,683 8,944 74,650 74,700 11,343 8,484 11,343 9,604 68,700 68,750 10,034 7,770 10,034 8,295 71,700 71,750 10,694 8,130 10,694 8,955 74,700 74,750 11,354 8,490 11,354 9,615 68,750 68,800 10,045 7,776 10,045 8,306 71,750 71,800 10,705 8,136 10,705 8,966 74,750 74,800 11,365 8,496 11,365 9,626 68,800 68,850 10,056 7,782 10,056 8,317 71,800 71,850 10,716 8,142 10,716 8,977 74,800 74,850 11,376 8,502 11,376 9,637 68,850 68,900 10,067 7,788 10,067 8,328 71,850 71,900 10,727 8,148 10,727 8,988 74,850 74,900 11,387 8,508 11,387 9,648 68,900 68,950 10,078 7,794 10,078 8,339 71,900 71,950 10,738 8,154 10,738 8,999 74,900 74,950 11,398 8,514 11,398 9,659 68,950 69,000 10,089 7,800 10,089 8,350 71,950 72,000 10,749 8,160 10,749 9,010 74,950 75,000 11,409 8,520 11,409 9,670



(Continued)

* This column must also be used by a qualifying surviving spouse.



Publication 17 (2025) 119

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

75,000 78,000 81,000

75,000 75,050 11,420 8,526 11,420 9,681 78,000 78,050 12,080 8,886 12,080 10,341 81,000 81,050 12,740 9,246 12,740 11,001

75,050 75,100 11,431 8,532 11,431 9,692 78,050 78,100 12,091 8,892 12,091 10,352 81,050 81,100 12,751 9,252 12,751 11,012

75,100 75,150 11,442 8,538 11,442 9,703 78,100 78,150 12,102 8,898 12,102 10,363 81,100 81,150 12,762 9,258 12,762 11,023

75,150 75,200 11,453 8,544 11,453 9,714 78,150 78,200 12,113 8,904 12,113 10,374 81,150 81,200 12,773 9,264 12,773 11,034

75,200 75,250 11,464 8,550 11,464 9,725 78,200 78,250 12,124 8,910 12,124 10,385 81,200 81,250 12,784 9,270 12,784 11,045

75,250 75,300 11,475 8,556 11,475 9,736 78,250 78,300 12,135 8,916 12,135 10,396 81,250 81,300 12,795 9,276 12,795 11,056

75,300 75,350 11,486 8,562 11,486 9,747 78,300 78,350 12,146 8,922 12,146 10,407 81,300 81,350 12,806 9,282 12,806 11,067

75,350 75,400 11,497 8,568 11,497 9,758 78,350 78,400 12,157 8,928 12,157 10,418 81,350 81,400 12,817 9,288 12,817 11,078

75,400 75,450 11,508 8,574 11,508 9,769 78,400 78,450 12,168 8,934 12,168 10,429 81,400 81,450 12,828 9,294 12,828 11,089

75,450 75,500 11,519 8,580 11,519 9,780 78,450 78,500 12,179 8,940 12,179 10,440 81,450 81,500 12,839 9,300 12,839 11,100

75,500 75,550 11,530 8,586 11,530 9,791 78,500 78,550 12,190 8,946 12,190 10,451 81,500 81,550 12,850 9,306 12,850 11,111

75,550 75,600 11,541 8,592 11,541 9,802 78,550 78,600 12,201 8,952 12,201 10,462 81,550 81,600 12,861 9,312 12,861 11,122

75,600 75,650 11,552 8,598 11,552 9,813 78,600 78,650 12,212 8,958 12,212 10,473 81,600 81,650 12,872 9,318 12,872 11,133

75,650 75,700 11,563 8,604 11,563 9,824 78,650 78,700 12,223 8,964 12,223 10,484 81,650 81,700 12,883 9,324 12,883 11,144

75,700 75,750 11,574 8,610 11,574 9,835 78,700 78,750 12,234 8,970 12,234 10,495 81,700 81,750 12,894 9,330 12,894 11,155

75,750 75,800 11,585 8,616 11,585 9,846 78,750 78,800 12,245 8,976 12,245 10,506 81,750 81,800 12,905 9,336 12,905 11,166

75,800 75,850 11,596 8,622 11,596 9,857 78,800 78,850 12,256 8,982 12,256 10,517 81,800 81,850 12,916 9,342 12,916 11,177

75,850 75,900 11,607 8,628 11,607 9,868 78,850 78,900 12,267 8,988 12,267 10,528 81,850 81,900 12,927 9,348 12,927 11,188

75,900 75,950 11,618 8,634 11,618 9,879 78,900 78,950 12,278 8,994 12,278 10,539 81,900 81,950 12,938 9,354 12,938 11,199

75,950 76,000 11,629 8,640 11,629 9,890 78,950 79,000 12,289 9,000 12,289 10,550 81,950 82,000 12,949 9,360 12,949 11,210

76,000 79,000 82,000

76,000 76,050 11,640 8,646 11,640 9,901 79,000 79,050 12,300 9,006 12,300 10,561 82,000 82,050 12,960 9,366 12,960 11,221

76,050 76,100 11,651 8,652 11,651 9,912 79,050 79,100 12,311 9,012 12,311 10,572 82,050 82,100 12,971 9,372 12,971 11,232

76,100 76,150 11,662 8,658 11,662 9,923 79,100 79,150 12,322 9,018 12,322 10,583 82,100 82,150 12,982 9,378 12,982 11,243

76,150 76,200 11,673 8,664 11,673 9,934 79,150 79,200 12,333 9,024 12,333 10,594 82,150 82,200 12,993 9,384 12,993 11,254

76,200 76,250 11,684 8,670 11,684 9,945 79,200 79,250 12,344 9,030 12,344 10,605 82,200 82,250 13,004 9,390 13,004 11,265

76,250 76,300 11,695 8,676 11,695 9,956 79,250 79,300 12,355 9,036 12,355 10,616 82,250 82,300 13,015 9,396 13,015 11,276

76,300 76,350 11,706 8,682 11,706 9,967 79,300 79,350 12,366 9,042 12,366 10,627 82,300 82,350 13,026 9,402 13,026 11,287

76,350 76,400 11,717 8,688 11,717 9,978 79,350 79,400 12,377 9,048 12,377 10,638 82,350 82,400 13,037 9,408 13,037 11,298

76,400 76,450 11,728 8,694 11,728 9,989 79,400 79,450 12,388 9,054 12,388 10,649 82,400 82,450 13,048 9,414 13,048 11,309

76,450 76,500 11,739 8,700 11,739 10,000 79,450 79,500 12,399 9,060 12,399 10,660 82,450 82,500 13,059 9,420 13,059 11,320

76,500 76,550 11,750 8,706 11,750 10,011 79,500 79,550 12,410 9,066 12,410 10,671 82,500 82,550 13,070 9,426 13,070 11,331

76,550 76,600 11,761 8,712 11,761 10,022 79,550 79,600 12,421 9,072 12,421 10,682 82,550 82,600 13,081 9,432 13,081 11,342

76,600 76,650 11,772 8,718 11,772 10,033 79,600 79,650 12,432 9,078 12,432 10,693 82,600 82,650 13,092 9,438 13,092 11,353

76,650 76,700 11,783 8,724 11,783 10,044 79,650 79,700 12,443 9,084 12,443 10,704 82,650 82,700 13,103 9,444 13,103 11,364

76,700 76,750 11,794 8,730 11,794 10,055 79,700 79,750 12,454 9,090 12,454 10,715 82,700 82,750 13,114 9,450 13,114 11,375

76,750 76,800 11,805 8,736 11,805 10,066 79,750 79,800 12,465 9,096 12,465 10,726 82,750 82,800 13,125 9,456 13,125 11,386

76,800 76,850 11,816 8,742 11,816 10,077 79,800 79,850 12,476 9,102 12,476 10,737 82,800 82,850 13,136 9,462 13,136 11,397

76,850 76,900 11,827 8,748 11,827 10,088 79,850 79,900 12,487 9,108 12,487 10,748 82,850 82,900 13,147 9,468 13,147 11,408

76,900 76,950 11,838 8,754 11,838 10,099 79,900 79,950 12,498 9,114 12,498 10,759 82,900 82,950 13,158 9,474 13,158 11,419

76,950 77,000 11,849 8,760 11,849 10,110 79,950 80,000 12,509 9,120 12,509 10,770 82,950 83,000 13,169 9,480 13,169 11,430

77,000 80,000 83,000

77,000 77,050 11,860 8,766 11,860 10,121 80,000 80,050 12,520 9,126 12,520 10,781 83,000 83,050 13,180 9,486 13,180 11,441

77,050 77,100 11,871 8,772 11,871 10,132 80,050 80,100 12,531 9,132 12,531 10,792 83,050 83,100 13,191 9,492 13,191 11,452

77,100 77,150 11,882 8,778 11,882 10,143 80,100 80,150 12,542 9,138 12,542 10,803 83,100 83,150 13,202 9,498 13,202 11,463

77,150 77,200 11,893 8,784 11,893 10,154 80,150 80,200 12,553 9,144 12,553 10,814 83,150 83,200 13,213 9,504 13,213 11,474

77,200 77,250 11,904 8,790 11,904 10,165 80,200 80,250 12,564 9,150 12,564 10,825 83,200 83,250 13,224 9,510 13,224 11,485

77,250 77,300 11,915 8,796 11,915 10,176 80,250 80,300 12,575 9,156 12,575 10,836 83,250 83,300 13,235 9,516 13,235 11,496

77,300 77,350 11,926 8,802 11,926 10,187 80,300 80,350 12,586 9,162 12,586 10,847 83,300 83,350 13,246 9,522 13,246 11,507

77,350 77,400 11,937 8,808 11,937 10,198 80,350 80,400 12,597 9,168 12,597 10,858 83,350 83,400 13,257 9,528 13,257 11,518

77,400 77,450 11,948 8,814 11,948 10,209 80,400 80,450 12,608 9,174 12,608 10,869 83,400 83,450 13,268 9,534 13,268 11,529

77,450 77,500 11,959 8,820 11,959 10,220 80,450 80,500 12,619 9,180 12,619 10,880 83,450 83,500 13,279 9,540 13,279 11,540

77,500 77,550 11,970 8,826 11,970 10,231 80,500 80,550 12,630 9,186 12,630 10,891 83,500 83,550 13,290 9,546 13,290 11,551

77,550 77,600 11,981 8,832 11,981 10,242 80,550 80,600 12,641 9,192 12,641 10,902 83,550 83,600 13,301 9,552 13,301 11,562

77,600 77,650 11,992 8,838 11,992 10,253 80,600 80,650 12,652 9,198 12,652 10,913 83,600 83,650 13,312 9,558 13,312 11,573

77,650 77,700 12,003 8,844 12,003 10,264 80,650 80,700 12,663 9,204 12,663 10,924 83,650 83,700 13,323 9,564 13,323 11,584

77,700 77,750 12,014 8,850 12,014 10,275 80,700 80,750 12,674 9,210 12,674 10,935 83,700 83,750 13,334 9,570 13,334 11,595

77,750 77,800 12,025 8,856 12,025 10,286 80,750 80,800 12,685 9,216 12,685 10,946 83,750 83,800 13,345 9,576 13,345 11,606

77,800 77,850 12,036 8,862 12,036 10,297 80,800 80,850 12,696 9,222 12,696 10,957 83,800 83,850 13,356 9,582 13,356 11,617

77,850 77,900 12,047 8,868 12,047 10,308 80,850 80,900 12,707 9,228 12,707 10,968 83,850 83,900 13,367 9,588 13,367 11,628

77,900 77,950 12,058 8,874 12,058 10,319 80,900 80,950 12,718 9,234 12,718 10,979 83,900 83,950 13,378 9,594 13,378 11,639

77,950 78,000 12,069 8,880 12,069 10,330 80,950 81,000 12,729 9,240 12,729 10,990 83,950 84,000 13,389 9,600 13,389 11,650



(Continued)

* This column must also be used by a qualifying surviving spouse.



120 Publication 17 (2025)

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

84,000 87,000 90,000

84,000 84,050 13,400 9,606 13,400 11,661 87,000 87,050 14,060 9,966 14,060 12,321 90,000 90,050 14,720 10,326 14,720 12,981 84,050 84,100 13,411 9,612 13,411 11,672 87,050 87,100 14,071 9,972 14,071 12,332 90,050 90,100 14,731 10,332 14,731 12,992 84,100 84,150 13,422 9,618 13,422 11,683 87,100 87,150 14,082 9,978 14,082 12,343 90,100 90,150 14,742 10,338 14,742 13,003 84,150 84,200 13,433 9,624 13,433 11,694 87,150 87,200 14,093 9,984 14,093 12,354 90,150 90,200 14,753 10,344 14,753 13,014 84,200 84,250 13,444 9,630 13,444 11,705 87,200 87,250 14,104 9,990 14,104 12,365 90,200 90,250 14,764 10,350 14,764 13,025 84,250 84,300 13,455 9,636 13,455 11,716 87,250 87,300 14,115 9,996 14,115 12,376 90,250 90,300 14,775 10,356 14,775 13,036 84,300 84,350 13,466 9,642 13,466 11,727 87,300 87,350 14,126 10,002 14,126 12,387 90,300 90,350 14,786 10,362 14,786 13,047 84,350 84,400 13,477 9,648 13,477 11,738 87,350 87,400 14,137 10,008 14,137 12,398 90,350 90,400 14,797 10,368 14,797 13,058 84,400 84,450 13,488 9,654 13,488 11,749 87,400 87,450 14,148 10,014 14,148 12,409 90,400 90,450 14,808 10,374 14,808 13,069 84,450 84,500 13,499 9,660 13,499 11,760 87,450 87,500 14,159 10,020 14,159 12,420 90,450 90,500 14,819 10,380 14,819 13,080 84,500 84,550 13,510 9,666 13,510 11,771 87,500 87,550 14,170 10,026 14,170 12,431 90,500 90,550 14,830 10,386 14,830 13,091 84,550 84,600 13,521 9,672 13,521 11,782 87,550 87,600 14,181 10,032 14,181 12,442 90,550 90,600 14,841 10,392 14,841 13,102 84,600 84,650 13,532 9,678 13,532 11,793 87,600 87,650 14,192 10,038 14,192 12,453 90,600 90,650 14,852 10,398 14,852 13,113 84,650 84,700 13,543 9,684 13,543 11,804 87,650 87,700 14,203 10,044 14,203 12,464 90,650 90,700 14,863 10,404 14,863 13,124 84,700 84,750 13,554 9,690 13,554 11,815 87,700 87,750 14,214 10,050 14,214 12,475 90,700 90,750 14,874 10,410 14,874 13,135 84,750 84,800 13,565 9,696 13,565 11,826 87,750 87,800 14,225 10,056 14,225 12,486 90,750 90,800 14,885 10,416 14,885 13,146 84,800 84,850 13,576 9,702 13,576 11,837 87,800 87,850 14,236 10,062 14,236 12,497 90,800 90,850 14,896 10,422 14,896 13,157 84,850 84,900 13,587 9,708 13,587 11,848 87,850 87,900 14,247 10,068 14,247 12,508 90,850 90,900 14,907 10,428 14,907 13,168 84,900 84,950 13,598 9,714 13,598 11,859 87,900 87,950 14,258 10,074 14,258 12,519 90,900 90,950 14,918 10,434 14,918 13,179 84,950 85,000 13,609 9,720 13,609 11,870 87,950 88,000 14,269 10,080 14,269 12,530 90,950 91,000 14,929 10,440 14,929 13,190

85,000 88,000 91,000

85,000 85,050 13,620 9,726 13,620 11,881 88,000 88,050 14,280 10,086 14,280 12,541 91,000 91,050 14,940 10,446 14,940 13,201 85,050 85,100 13,631 9,732 13,631 11,892 88,050 88,100 14,291 10,092 14,291 12,552 91,050 91,100 14,951 10,452 14,951 13,212 85,100 85,150 13,642 9,738 13,642 11,903 88,100 88,150 14,302 10,098 14,302 12,563 91,100 91,150 14,962 10,458 14,962 13,223 85,150 85,200 13,653 9,744 13,653 11,914 88,150 88,200 14,313 10,104 14,313 12,574 91,150 91,200 14,973 10,464 14,973 13,234 85,200 85,250 13,664 9,750 13,664 11,925 88,200 88,250 14,324 10,110 14,324 12,585 91,200 91,250 14,984 10,470 14,984 13,245 85,250 85,300 13,675 9,756 13,675 11,936 88,250 88,300 14,335 10,116 14,335 12,596 91,250 91,300 14,995 10,476 14,995 13,256 85,300 85,350 13,686 9,762 13,686 11,947 88,300 88,350 14,346 10,122 14,346 12,607 91,300 91,350 15,006 10,482 15,006 13,267 85,350 85,400 13,697 9,768 13,697 11,958 88,350 88,400 14,357 10,128 14,357 12,618 91,350 91,400 15,017 10,488 15,017 13,278 85,400 85,450 13,708 9,774 13,708 11,969 88,400 88,450 14,368 10,134 14,368 12,629 91,400 91,450 15,028 10,494 15,028 13,289 85,450 85,500 13,719 9,780 13,719 11,980 88,450 88,500 14,379 10,140 14,379 12,640 91,450 91,500 15,039 10,500 15,039 13,300 85,500 85,550 13,730 9,786 13,730 11,991 88,500 88,550 14,390 10,146 14,390 12,651 91,500 91,550 15,050 10,506 15,050 13,311 85,550 85,600 13,741 9,792 13,741 12,002 88,550 88,600 14,401 10,152 14,401 12,662 91,550 91,600 15,061 10,512 15,061 13,322 85,600 85,650 13,752 9,798 13,752 12,013 88,600 88,650 14,412 10,158 14,412 12,673 91,600 91,650 15,072 10,518 15,072 13,333 85,650 85,700 13,763 9,804 13,763 12,024 88,650 88,700 14,423 10,164 14,423 12,684 91,650 91,700 15,083 10,524 15,083 13,344 85,700 85,750 13,774 9,810 13,774 12,035 88,700 88,750 14,434 10,170 14,434 12,695 91,700 91,750 15,094 10,530 15,094 13,355 85,750 85,800 13,785 9,816 13,785 12,046 88,750 88,800 14,445 10,176 14,445 12,706 91,750 91,800 15,105 10,536 15,105 13,366 85,800 85,850 13,796 9,822 13,796 12,057 88,800 88,850 14,456 10,182 14,456 12,717 91,800 91,850 15,116 10,542 15,116 13,377 85,850 85,900 13,807 9,828 13,807 12,068 88,850 88,900 14,467 10,188 14,467 12,728 91,850 91,900 15,127 10,548 15,127 13,388 85,900 85,950 13,818 9,834 13,818 12,079 88,900 88,950 14,478 10,194 14,478 12,739 91,900 91,950 15,138 10,554 15,138 13,399 85,950 86,000 13,829 9,840 13,829 12,090 88,950 89,000 14,489 10,200 14,489 12,750 91,950 92,000 15,149 10,560 15,149 13,410

86,000 89,000 92,000

86,000 86,050 13,840 9,846 13,840 12,101 89,000 89,050 14,500 10,206 14,500 12,761 92,000 92,050 15,160 10,566 15,160 13,421 86,050 86,100 13,851 9,852 13,851 12,112 89,050 89,100 14,511 10,212 14,511 12,772 92,050 92,100 15,171 10,572 15,171 13,432 86,100 86,150 13,862 9,858 13,862 12,123 89,100 89,150 14,522 10,218 14,522 12,783 92,100 92,150 15,182 10,578 15,182 13,443 86,150 86,200 13,873 9,864 13,873 12,134 89,150 89,200 14,533 10,224 14,533 12,794 92,150 92,200 15,193 10,584 15,193 13,454 86,200 86,250 13,884 9,870 13,884 12,145 89,200 89,250 14,544 10,230 14,544 12,805 92,200 92,250 15,204 10,590 15,204 13,465 86,250 86,300 13,895 9,876 13,895 12,156 89,250 89,300 14,555 10,236 14,555 12,816 92,250 92,300 15,215 10,596 15,215 13,476 86,300 86,350 13,906 9,882 13,906 12,167 89,300 89,350 14,566 10,242 14,566 12,827 92,300 92,350 15,226 10,602 15,226 13,487 86,350 86,400 13,917 9,888 13,917 12,178 89,350 89,400 14,577 10,248 14,577 12,838 92,350 92,400 15,237 10,608 15,237 13,498 86,400 86,450 13,928 9,894 13,928 12,189 89,400 89,450 14,588 10,254 14,588 12,849 92,400 92,450 15,248 10,614 15,248 13,509 86,450 86,500 13,939 9,900 13,939 12,200 89,450 89,500 14,599 10,260 14,599 12,860 92,450 92,500 15,259 10,620 15,259 13,520 86,500 86,550 13,950 9,906 13,950 12,211 89,500 89,550 14,610 10,266 14,610 12,871 92,500 92,550 15,270 10,626 15,270 13,531 86,550 86,600 13,961 9,912 13,961 12,222 89,550 89,600 14,621 10,272 14,621 12,882 92,550 92,600 15,281 10,632 15,281 13,542 86,600 86,650 13,972 9,918 13,972 12,233 89,600 89,650 14,632 10,278 14,632 12,893 92,600 92,650 15,292 10,638 15,292 13,553 86,650 86,700 13,983 9,924 13,983 12,244 89,650 89,700 14,643 10,284 14,643 12,904 92,650 92,700 15,303 10,644 15,303 13,564 86,700 86,750 13,994 9,930 13,994 12,255 89,700 89,750 14,654 10,290 14,654 12,915 92,700 92,750 15,314 10,650 15,314 13,575 86,750 86,800 14,005 9,936 14,005 12,266 89,750 89,800 14,665 10,296 14,665 12,926 92,750 92,800 15,325 10,656 15,325 13,586 86,800 86,850 14,016 9,942 14,016 12,277 89,800 89,850 14,676 10,302 14,676 12,937 92,800 92,850 15,336 10,662 15,336 13,597 86,850 86,900 14,027 9,948 14,027 12,288 89,850 89,900 14,687 10,308 14,687 12,948 92,850 92,900 15,347 10,668 15,347 13,608 86,900 86,950 14,038 9,954 14,038 12,299 89,900 89,950 14,698 10,314 14,698 12,959 92,900 92,950 15,358 10,674 15,358 13,619 86,950 87,000 14,049 9,960 14,049 12,310 89,950 90,000 14,709 10,320 14,709 12,970 92,950 93,000 15,369 10,680 15,369 13,630



(Continued)

* This column must also be used by a qualifying surviving spouse.



Publication 17 (2025) 121

2025 Tax Table — Continued

If line 15 If line 15 If line 15 (taxable And you are— (taxable And you are— (taxable And you are— income) is— income) is— income) is—

At But Single Married Married Head of At But Single Married Married Head of At But Single Married Married Head of least less filing filing a least less filing filing a least less filing filing a

than jointly* sepa- house- than jointly* sepa- house- than jointly* sepa- house-

rately hold rately hold rately hold

Your tax is— Your tax is— Your tax is—

93,000 96,000 99,000

93,000 93,050 15,380 10,686 15,380 13,641 96,000 96,050 16,040 11,046 16,040 14,301 99,000 99,050 16,700 11,614 16,700 14,961

93,050 93,100 15,391 10,692 15,391 13,652 96,050 96,100 16,051 11,052 16,051 14,312 99,050 99,100 16,711 11,625 16,711 14,972

93,100 93,150 15,402 10,698 15,402 13,663 96,100 96,150 16,062 11,058 16,062 14,323 99,100 99,150 16,722 11,636 16,722 14,983

93,150 93,200 15,413 10,704 15,413 13,674 96,150 96,200 16,073 11,064 16,073 14,334 99,150 99,200 16,733 11,647 16,733 14,994

93,200 93,250 15,424 10,710 15,424 13,685 96,200 96,250 16,084 11,070 16,084 14,345 99,200 99,250 16,744 11,658 16,744 15,005

93,250 93,300 15,435 10,716 15,435 13,696 96,250 96,300 16,095 11,076 16,095 14,356 99,250 99,300 16,755 11,669 16,755 15,016

93,300 93,350 15,446 10,722 15,446 13,707 96,300 96,350 16,106 11,082 16,106 14,367 99,300 99,350 16,766 11,680 16,766 15,027

93,350 93,400 15,457 10,728 15,457 13,718 96,350 96,400 16,117 11,088 16,117 14,378 99,350 99,400 16,777 11,691 16,777 15,038

93,400 93,450 15,468 10,734 15,468 13,729 96,400 96,450 16,128 11,094 16,128 14,389 99,400 99,450 16,788 11,702 16,788 15,049

93,450 93,500 15,479 10,740 15,479 13,740 96,450 96,500 16,139 11,100 16,139 14,400 99,450 99,500 16,799 11,713 16,799 15,060

93,500 93,550 15,490 10,746 15,490 13,751 96,500 96,550 16,150 11,106 16,150 14,411 99,500 99,550 16,810 11,724 16,810 15,071

93,550 93,600 15,501 10,752 15,501 13,762 96,550 96,600 16,161 11,112 16,161 14,422 99,550 99,600 16,821 11,735 16,821 15,082

93,600 93,650 15,512 10,758 15,512 13,773 96,600 96,650 16,172 11,118 16,172 14,433 99,600 99,650 16,832 11,746 16,832 15,093

93,650 93,700 15,523 10,764 15,523 13,784 96,650 96,700 16,183 11,124 16,183 14,444 99,650 99,700 16,843 11,757 16,843 15,104

93,700 93,750 15,534 10,770 15,534 13,795 96,700 96,750 16,194 11,130 16,194 14,455 99,700 99,750 16,854 11,768 16,854 15,115

93,750 93,800 15,545 10,776 15,545 13,806 96,750 96,800 16,205 11,136 16,205 14,466 99,750 99,800 16,865 11,779 16,865 15,126

93,800 93,850 15,556 10,782 15,556 13,817 96,800 96,850 16,216 11,142 16,216 14,477 99,800 99,850 16,876 11,790 16,876 15,137

93,850 93,900 15,567 10,788 15,567 13,828 96,850 96,900 16,227 11,148 16,227 14,488 99,850 99,900 16,887 11,801 16,887 15,148

93,900 93,950 15,578 10,794 15,578 13,839 96,900 96,950 16,238 11,154 16,238 14,499 99,900 99,950 16,898 11,812 16,898 15,159

93,950 94,000 15,589 10,800 15,589 13,850 96,950 97,000 16,249 11,163 16,249 14,510 99,950 100,000 16,909 11,823 16,909 15,170

94,000 97,000

94,000 94,050 15,600 10,806 15,600 13,861 97,000 97,050 16,260 11,174 16,260 14,521 $100,000

94,050 94,100 15,611 10,812 15,611 13,872 97,050 97,100 16,271 11,185 16,271 14,532 or over

94,150 94,200 15,633 10,824 15,633 13,894 97,150 97,200 16,293 11,207 16,293 14,554 Computation 94,200 94,100 94,150 15,622 10,818 15,622 13,883 97,100 97,150 16,282 11,196 16,282 14,543 use the Tax

94,250 15,644 10,830 15,644 13,905 97,200 97,250 16,304 11,218 16,304 14,565 Worksheet

94,250 94,300 15,655 10,836 15,655 13,916 97,250 97,300 16,315 11,229 16,315 14,576

94,300 94,350 15,666 10,842 15,666 13,927 97,300 97,350 16,326 11,240 16,326 14,587

94,350 94,400 15,677 10,848 15,677 13,938 97,350 97,400 16,337 11,251 16,337 14,598

94,400 94,450 15,688 10,854 15,688 13,949 97,400 97,450 16,348 11,262 16,348 14,609

94,450 94,500 15,699 10,860 15,699 13,960 97,450 97,500 16,359 11,273 16,359 14,620

94,500 94,550 15,710 10,866 15,710 13,971 97,500 97,550 16,370 11,284 16,370 14,631

94,550 94,600 15,721 10,872 15,721 13,982 97,550 97,600 16,381 11,295 16,381 14,642

94,600 94,650 15,732 10,878 15,732 13,993 97,600 97,650 16,392 11,306 16,392 14,653

94,650 94,700 15,743 10,884 15,743 14,004 97,650 97,700 16,403 11,317 16,403 14,664

94,700 94,750 15,754 10,890 15,754 14,015 97,700 97,750 16,414 11,328 16,414 14,675

94,750 94,800 15,765 10,896 15,765 14,026 97,750 97,800 16,425 11,339 16,425 14,686

94,800 94,850 15,776 10,902 15,776 14,037 97,800 97,850 16,436 11,350 16,436 14,697

94,850 94,900 15,787 10,908 15,787 14,048 97,850 97,900 16,447 11,361 16,447 14,708

94,900 94,950 15,798 10,914 15,798 14,059 97,900 97,950 16,458 11,372 16,458 14,719

94,950 95,000 15,809 10,920 15,809 14,070 97,950 98,000 16,469 11,383 16,469 14,730

95,000 98,000

95,000 95,050 15,820 10,926 15,820 14,081 98,000 98,050 16,480 11,394 16,480 14,741

95,050 95,100 15,831 10,932 15,831 14,092 98,050 98,100 16,491 11,405 16,491 14,752

95,100 95,150 15,842 10,938 15,842 14,103 98,100 98,150 16,502 11,416 16,502 14,763

95,150 95,200 15,853 10,944 15,853 14,114 98,150 98,200 16,513 11,427 16,513 14,774

95,200 95,250 15,864 10,950 15,864 14,125 98,200 98,250 16,524 11,438 16,524 14,785

95,250 95,300 15,875 10,956 15,875 14,136 98,250 98,300 16,535 11,449 16,535 14,796

95,300 95,350 15,886 10,962 15,886 14,147 98,300 98,350 16,546 11,460 16,546 14,807

95,350 95,400 15,897 10,968 15,897 14,158 98,350 98,400 16,557 11,471 16,557 14,818

95,400 95,450 15,908 10,974 15,908 14,169 98,400 98,450 16,568 11,482 16,568 14,829

95,450 95,500 15,919 10,980 15,919 14,180 98,450 98,500 16,579 11,493 16,579 14,840

95,500 95,550 15,930 10,986 15,930 14,191 98,500 98,550 16,590 11,504 16,590 14,851

95,550 95,600 15,941 10,992 15,941 14,202 98,550 98,600 16,601 11,515 16,601 14,862

95,600 95,650 15,952 10,998 15,952 14,213 98,600 98,650 16,612 11,526 16,612 14,873

95,650 95,700 15,963 11,004 15,963 14,224 98,650 98,700 16,623 11,537 16,623 14,884

95,700 95,750 15,974 11,010 15,974 14,235 98,700 98,750 16,634 11,548 16,634 14,895

95,750 95,800 15,985 11,016 15,985 14,246 98,750 98,800 16,645 11,559 16,645 14,906

95,800 95,850 15,996 11,022 15,996 14,257 98,800 98,850 16,656 11,570 16,656 14,917

95,850 95,900 16,007 11,028 16,007 14,268 98,850 98,900 16,667 11,581 16,667 14,928

95,900 95,950 16,018 11,034 16,018 14,279 98,900 98,950 16,678 11,592 16,678 14,939

95,950 96,000 16,029 11,040 16,029 14,290 98,950 99,000 16,689 11,603 16,689 14,950



* This column must also be used by a qualifying surviving spouse.



122 Publication 17 (2025) 2025 Tax Computation Worksheet—Line 16





See Line 16 in the Instructions for Form 1040 to see if you must use the worksheet below to figure your tax.


!

CAUTION



Note: If you’re required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified

Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax

Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you’re looking up. Enter the

result on the appropriate line of the form or worksheet that you’re completing.



Section A—Use if your filing status is Single. Complete the row below that applies to you.

Tax.

Subtract (d) from (c).

(a) (b) (c) Enter the result here and

Taxable income. Enter the amount from Multiplication Multiply (d) on Form 1040 or

If line 15 is— line 15. amount (a) by (b). Subtraction amount 1040-SR, line 16.

At least $100,000 but not over $103,350 $ × 22% (0.22) $ $ 5,086.00 $

Over $103,350 but not over $197,300 $ × 24% (0.24) $ $ 7,153.00 $

Over $197,300 but not over $250,525 $ × 32% (0.32) $ $ 22,937.00 $

Over $250,525 but not over $626,350 $ × 35% (0.35) $ $ 30,452.75 $

Over $626,350 $ × 37% (0.37) $ $ 42, 979.75 $



Section B—Use if your filing status is Married filing jointly or Qualifying surviving spouse. Complete the row below that applies to you.

Tax.

Subtract (d) from (c).

(a) (b) (c) Enter the result here and

Taxable income. Enter the amount Multiplication Multiply (d) on Form 1040 or

If line 15 is— from line 15. amount (a) by (b). Subtraction amount 1040-SR, line 16.

At least $100,000 but not over $206,700 $ × 22% (0.22) $ $ 10,172.00 $

Over $206,700 but not over $394,600 $ × 24% (0.24) $ $ 14,306.00 $

Over $394,600 but not over $501,050 $ × 32% (0.32) $ $ 45,874.00 $

Over $501,050 but not over $751,600 $ × 35% (0.35) $ $ 60,905.50 $

Over $751,600 $ × 37% (0.37) $ $ 75,937.50 $



Section C—Use if your filing status is Married filing separately. Complete the row below that applies to you.

Tax.

Subtract (d) from (c).

(a) (b) (c) Enter the result here and

Taxable income. Enter the amount from Multiplication Multiply (d) on Form 1040 or

If line 15 is— line 15. amount (a) by (b). Subtraction amount 1040-SR, line 16.

At least $100,000 but not over $103,350 $ × 22% (0.22) $ $ 5,086.00 $

Over $103,350 but not over $197,300 $ × 24% (0.24) $ $ 7,153.00 $

Over $197,300 but not over $250,525 $ × 32% (0.32) $ $ 22,937.00 $

Over $250,525 but not over $375,800 $ × 35% (0.35) $ $ 30,452.75 $

Over $375,800 $ × 37% (0.37) $ $ 37,968.75 $



Publication 17 (2025) 123 Section D—Use if your filing status is Head of household. Complete the row below that applies to you.





Tax.


Subtract (d) from (c).

(a) (c) Enter the result here and

Taxable income. Enter the amount (b) Multiply (d) on Form 1040 or

If line 15 is— from line 15. Multiplication amount (a) by (b). Subtraction amount 1040-SR, line 16.

At least $100,000 but not over $103,350 $ × 22% (0.22) $ $ 6,825.00 $

Over $103,350 but not over $197,300 $ × 24% (0.24) $ $ 8,892.00 $

Over $197,300 but not over $250,500 $ × 32% (0.32) $ $ 24,676.00 $

Over $250,500 but not over $626,350 $ × 35% (0.35) $ $ 32,191.00 $

Over $626,350 $ × 37% (0.37) $ $ 44,718.00 $



124 Publication 17 (2025) 2025 Tax Rate Schedules

The Tax Rate Schedules are shown so you can see the tax rate that applies to all levels of taxable income. Don’t use them to figure your tax. Instead,

! see chapter 13.

CAUTION



Schedule X—If your filing status is Single

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $11,925 - - - - - - - 10% $0

11,925 48,475 $1,192.50 + 12% 11,925 48,475 103,350 5,578.50 + 22% 48,475

103,350 197,300 17,651.00 + 24% 103,350 197,300 250,525 40,199.00 + 32% 197,300 250,525 626,350 57,231.00 + 35% 250,525 626,350 - - - - - - - 188,769.75 + 37% 626,350



Schedule Y-1—If your filing status is Married filing jointly or Qualifying surviving spouse

If your taxable income is: The tax is:

Over— But not over— of the amount over—



$0 - - - - - - - $23,850 10% $0

23,850 96,950 $2,385.00 + 12% 23,850 96,950 206,700 11,157.00 + 22% 96,950

206,700 394,600 35,302.00 + 24% 206,700

394,600 501,050 80,398.00 + 32% 394,600 501,050 751,600 114,462.00 + 35% 501,050 751,600 - - - - - - - 202,154.50 + 37% 751,600



Schedule Y-2—If your filing status is Married filing separately

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $11,925 - - - - - - - 10% $0

11,925 48,475 $1,192.50 + 12% 11,925 48,475 103,350 5,578.50 + 22% 48,475

103,350 197,300 17,651.00 + 24% 103,350 197,300 250,525 40,199.00 + 32% 197,300 250,525 375,800 57,231.00 + 35% 250,525 375,800 - - - - - - - 101,077.25 + 37% 375,800



Schedule Z—If your filing status is Head of household

If your taxable income is: The tax is:

Over— But not over— of the amount over—

$0 $17,000 - - - - - - - 10% $0

17,000 64,850 $1,700.00 + 12% 17,000 64,850 103,350 7,442.00 + 22% 64,850

103,350 197,300 15,912.00 + 24% 103,350 197,300 250,500 38,460.00 + 32% 197,300 250,500 626,350 55,484.00 + 35% 250,500 626,350 - - - - - - - 187,031.50 + 37% 626,350



Publication 17 (2025) 125 Your Rights as a Taxpayer





This section explains your rights as ers have the right to know when the as Forms 1099 and W-2, on stud- Your Appeal Rights and How to a taxpayer and the processes for IRS has finished an audit. ies of past examinations, or on cer- Prepare a Protest if You Don’t




examination, appeal, collection, tain issues identified by compli- Agree; and Pub. 556. 7. The Right to Privacy. Taxpay-and refunds. ance projects. Second, we use If you do not wish to use the ers have the right to expect that information from outside sources IRS Independent Office of Appeals any IRS inquiry, examination, or that indicates that a return may The Taxpayer Bill of or disagree with its findings, you enforcement action will comply have incorrect amounts. These may be able to take your case to with the law and be no more intru-Rights sources may include newspapers, the U.S. Tax Court, U.S. Court of sive than necessary, and will re-public records, and individuals. If Federal Claims, or the U.S. District spect all due process rights, includ-1. The Right to Be Informed. we determine that the information Court where you live. If you take ing search and seizure protections, Taxpayers have the right to know is accurate and reliable, we may your case to court, the IRS will and will provide, where applicable, what they need to do to comply use it to select a return for exami-have the burden of proving certain a collection due process hearing. with the tax laws. They are entitled nation. facts if you kept adequate records to clear explanations of the laws 8. The Right to Confidentiality. Pub. 556, Examination of Re-to show your tax liability, cooper-and IRS procedures in all tax Taxpayers have the right to expect turns, Appeal Rights, and Claims ated with the IRS, and meet certain forms, instructions, publications, that any information they provide to for Refund, explains the rules and other conditions. If the court agrees notices, and correspondence. the IRS will not be disclosed unless procedures that we follow in exami-with you on most issues in your They have the right to be informed authorized by the taxpayer or by nations. The following sections case and finds that our position of IRS decisions about their tax ac-law. Taxpayers have the right to ex-give an overview of how we con-was largely unjustified, you may be counts and to receive clear explan-pect appropriate action will be duct examinations. able to recover some of your ad-ations of the outcomes. taken against employees, return ministrative and litigation costs. By mail. We handle many exami-preparers, and others who wrong-2. The Right to Quality Service. You will not be eligible to recover nations and inquiries by mail. We fully use or disclose taxpayer return these costs unless you tried to re-Taxpayers have the right to receive will send you a letter with either a information. prompt, courteous, and professio-solve your case administratively, in-request for more information or a nal assistance in their dealings with cluding going through the appeals 9. The Right to Retain Repre-reason why we believe a change to the IRS, to be spoken to in a way system, and you gave us the infor-sentation. Taxpayers have the your return may be needed. You mation necessary to resolve the they can easily understand, to re-right to retain an authorized repre-can respond by mail or you can re-ceive clear and easily understand-case. sentative of their choice to repre-quest a personal interview with an able communications from the IRS, sent them in their dealings with the examiner. If you mail us the re-and to speak to a supervisor about IRS. Taxpayers have the right to quested information or provide an Collections inadequate service. seek assistance from a Low In-explanation, we may or may not come Taxpayer Clinic if they cannot 3. The Right to Pay No More agree with you, and we will explain Pub. 594, The IRS Collection Proc-afford representation. the reasons for any changes. Do ess, explains your rights and re-than the Correct Amount of Tax. sponsibilities regarding payment of Taxpayers have the right to pay not hesitate to write to us about 10. The Right to a Fair and Just only the amount of tax legally due, anything you do not understand. federal taxes. It describes the fol-Tax System. Taxpayers have the lowing. including interest and penalties, right to expect the tax system to By interview. If we notify you that and to have the IRS apply all tax consider facts and circumstances • What to do when you owe we will conduct your examination payments properly. taxes. It describes what to do that might affect their underlying li-through a personal interview, or if you get a tax bill and what to abilities, ability to pay, or ability to you request such an interview, you 4. The Right to Challenge the do if you think your bill is provide information timely. Taxpay-IRS’s Position and Be Heard. have the right to ask that the ex-wrong. It also covers making ers have the right to receive assis-Taxpayers have the right to raise amination take place at a reasona-installment payments, delay-tance from the Taxpayer Advocate objections and provide additional ble time and place that is conven-ing collection action, and sub-Service if they are experiencing fi-ient for both you and the IRS. If our documentation in response to for-mitting an offer in compro-nancial difficulty or if the IRS has mal IRS actions or proposed ac-examiner proposes any changes to mise. not resolved their tax issues prop-tions, to expect that the IRS will your return, they will explain the erly and timely through its normal consider their timely objections reasons for the changes. If you do • IRS collection actions. It cov-channels. not agree with these changes, you and documentation promptly and ers liens, releasing a lien, lev-can meet with the examiner’s su-fairly, and to receive a response if ies, releasing a levy, seizures Examinations the IRS does not agree with their pervisor. and sales, and release of position. property. (Audits) Repeat examinations. If we ex-5. The Right to Appeal an IRS amined your return for the same • IRS certification to the State items in either of the 2 previous Decision in an Independent Fo-Department of a seriously de-We accept most taxpayers’ returns years and proposed no change to rum. Taxpayers are entitled to a linquent tax debt, which will as filed. If we inquire about your re-fair and impartial administrative ap-your tax liability, contact us as soon generally result in denial of a turn or select it for examination, it peal of most IRS decisions, includ-as possible so we can see if we passport application and may does not suggest that you are dis-ing many penalties, and have the should discontinue the examina-lead to revocation of a pass-honest. The inquiry or examination tion. right to receive a written response port. may or may not result in more tax. regarding the IRS Independent Of-We may close your case without Your collection appeal rights fice of Appeals’ decision. Taxpay-change, or you may receive a re-Appeals are explained in detail in Pub. ers generally have the right to take fund. 1660, Collection Appeal Rights. their cases to court. The process of selecting a re-If you do not agree with the exam-Innocent spouse relief. Gener-turn for examination usually begins 6. The Right to Finality. Taxpay-iner’s proposed changes, you can ally, both you and your spouse are in one of two ways. First, we use ers have the right to know the max-appeal them to the IRS Independ-each responsible for paying the full computer programs to identify re-imum amount of time they have to ent Office of Appeals. Most differ-amount of tax, interest, and penal-turns that may have incorrect challenge the IRS’s position as well ences can be settled without ex-ties due on your joint return. How-amounts. These programs may be as the maximum amount of time pensive and time-consuming court ever, if you qualify for innocent based on information returns, such the IRS has to audit a particular tax trials. Your appeal rights are ex-spouse relief, you may be relieved year or collect a tax debt. Taxpay-plained in detail in both Pub. 5,

126 Publication 17 (2025)





of part or all of the joint liability. To sons, you have a right to request a IRS.gov/Help/Tax-Law-Taxpayer Advocate


request relief, you must file Form list of those contacted. Your re- Questions and Service (TAS)

8857, Request for Innocent quest can be made by telephone, How To Get Tax Help.



Spouse Relief. For more informa- in writing, or during a personal in- • TAS is an independent organiza- Forms and Publications: tion on innocent spouse relief, see terview. tion within the IRS that can help IRS.gov/Forms and Pub. 971, Innocent Spouse Relief; protect your taxpayer rights. They IRS.gov/OrderForms . and Form 8857. Refunds can offer you help if your tax prob-• Small Business Ombudsman: Potential third-party contacts. lem is causing a hardship, or A small business entity can Generally, the IRS will deal directly You may file a claim for refund if you’ve tried but haven’t been able participate in the regulatory you think you paid too much tax. with you or your duly authorized to resolve your problem with the process and comment on en-representative. However, we some-You must generally file the claim IRS. If you qualify for their assis-forcement actions of the IRS times talk with other persons if we within 3 years from the date you tance, which is always free, they by calling 888-REG-FAIR. need information that you have filed your original return or 2 years will do everything possible to help from the date you paid the tax, • Treasury Inspector General for been unable to provide, or to verify you. Go to whichever is later. The law gener-information we have received. If we Tax Administration: You can TaxpayerAdvocate.IRS.gov or call do contact other persons, such as ally provides for interest on your re-confidentially report miscon-877-777-4778. a neighbor, a bank, an employer, or fund if it is not paid within 45 days duct, waste, fraud, or abuse of the date you filed your return or by an IRS employee by calling employees, we will generally need claim for refund. Pub. 556 has to tell them limited information, Tax Information 800-366-4484. People who more information on refunds. such as your name. The law pro-are deaf, hard of hearing, or The IRS provides the following have a speech disability and hibits us from disclosing any more If you were due a refund but you sources for forms, publications, who have access to TTY/TDD information than is necessary to did not file a return, you must gen-and additional information. equipment can call obtain or verify the information we erally file your return within 3 years from the date the return was due are seeking. Our need to contact • Internet: IRS.gov. 800-877-8339. You can re-main anonymous. other persons may continue as (including extensions) to get that • Tax Questions: long as there is activity in your refund.

case. If we do contact other per-



How To Get Tax Help

If you have questions about a tax cal community, if you qualify, in- information on free tax return • The Sales Tax Deduction

issue; need help preparing your tax clude the following. preparation. Calculator (IRS.gov/SalesTax)



return; or want to download free figures the amount you can • Free File. This program lets • MilTax. Members of the U.S. publications, forms, or instructions, claim if you itemize deduc- you prepare and file your fed- Armed Forces and qualified go to IRS.gov to find resources that tions on Schedule A (Form eral individual income tax re- veterans may use MilTax, a can help you right away. 1040). turn for free using software or free tax service offered by the

Tax reform. Tax reform legislation Free File Fillable Forms. How- Department of Defense Getting answers to your impacting federal taxes, credits, ever, state tax preparation through Military OneSource. tax questions. On and deductions was enacted in P.L. may not be available through For more information, go to IRS.gov, you can get

119-21, commonly known as the Free File. Go to IRS.gov/ MilitaryOneSource up-to-date information on current

One Big Beautiful Bill Act, on July FreeFile to see if you qualify (MilitaryOneSource.mil/ events and changes in tax law.



4, 2025. Go to IRS.gov/OBBB for for free online federal tax MilTax). • IRS.gov/Help: A variety of more information and updates on preparation, e-filing, and di-Also, the IRS offers Free tools to help you get answers how this legislation affects your rect deposit or payment op-Fillable Forms, which can be to some of the most common taxes. tions. completed online and then tax questions. e-filed regardless of income. Preparing and filing your tax re-• VITA. The Volunteer Income • IRS.gov/ITA : The Interactive Tax Assistance (VITA) pro-turn. After receiving all your wage Using online tools to help pre-Tax Assistant, a tool that will gram offers free tax help to and earnings statements (Forms pare your return. Go to IRS.gov/ ask you questions and, based people with low-to-moderate W-2, W-2G, 1099-R, 1099-MISC, Tools for the following. on your input, provide an-incomes, persons with disabil-1099-NEC, etc.); unemployment • The Earned Income Tax Credit swers on a number of tax top-ities, and limited-Eng-compensation statements (by mail Assistant ( IRS.gov/ ics. lish-speaking taxpayers who or in a digital format) or other gov-EITCAssistant ) determines if need help preparing their own ernment payment statements • IRS.gov/Forms : Find forms, in-you’re eligible for the earned tax returns. Go to IRS.gov/ (Form 1099-G); and interest, divi-structions, and publications. income credit (EITC). VITA , download the free You will find details on the dend, and retirement statements IRS2Go app, or call • The Online EIN Application from banks and investment firms most recent tax changes and 800-906-9887 for information ( IRS.gov/EIN ) helps you get (Forms 1099), you have several op-interactive links to help you on free tax return preparation. an employer identification tions to choose from to prepare find answers to your ques-number (EIN) at no cost. tions. and file your tax return. You can • TCE. The Tax Counseling for prepare the tax return yourself, see the Elderly (TCE) program of-• The Tax Withholding • You may also be able to ac-if you qualify for free tax prepara-fers free tax help for all tax-Estimator ( IRS.gov/W4App ) cess tax information in your tion, or hire a tax professional to payers, particularly those who makes it easier for you to esti-e-filing software. prepare your return. are 60 years of age and older. mate the federal income tax you want your employer to TCE volunteers specialize in Free options for tax preparation. Need someone to prepare your answering questions about withhold from your paycheck. Your options for preparing and fil-tax return? There are various pensions and retirement-rela-This is tax withholding. See ing your return online or in your lo-types of tax return preparers, in-ted issues unique to seniors. how your withholding affects cluding enrolled agents, certified Go to IRS.gov/TCE or down-your refund, take-home pay, or public accountants (CPAs), ac-load the free IRS2Go app for tax due. countants, and many others who

Publication 17 (2025) 127 don’t have professional credentials. Over-the-Phone Interpreter eBooks haven’t been tested on used to file a fraudulent return If you choose to have someone (OPI) Service. The IRS offers the other dedicated eBook readers, or to claim a refund or credit.



prepare your tax return, choose OPI Service to taxpayers needing and eBook functionality may not • The IRS doesn’t initiate con-that preparer wisely. A paid tax pre-language interpretation. The OPI operate as intended. tact with taxpayers by email, parer is: Service is available at Taxpayer As-Access your online account (in-text messages (including sistance Centers (TACs), most IRS • Primarily responsible for the dividual taxpayers only). Go to shortened links), telephone offices, and every VITA/TCE tax re-overall substantive accuracy IRS.gov/Account to securely ac-calls, or social media chan-turn site. This service is available in of your return, cess information about your federal nels to request or verify per-Spanish, Mandarin, Cantonese, tax account. sonal or financial information. • Required to sign the return, Korean, Vietnamese, Russian, and This includes requests for per-and Haitian Creole. • View the amount you owe and sonal identification numbers a breakdown by tax year. • Required to include their pre-Accessibility Helpline available (PINs), passwords, or similar parer tax identification number for taxpayers with disabilities. • See payment plan details or information for credit cards, (PTIN). apply for a new payment plan. Taxpayers who need information banks, or other financial ac-counts. about accessibility services can Although the tax preparer • Make a payment or view 5 call 833-690-0598. The Accessibil-! always signs the return, years of payment history and • Go to IRS.gov/IdentityTheft , ity Helpline can answer questions CAUTION you’re ultimately responsi-any pending or scheduled the IRS Identity Theft Central related to current and future acces-ble for providing all the information payments. webpage, for information on sibility products and services avail-required for the preparer to accu-identity theft and data security • Access your tax records, in-able in alternative media formats rately prepare your return and for protection for taxpayers, tax cluding key data from your (for example, braille-ready, large the accuracy of every item reported professionals, and busi-most recent tax return, and print, audio, etc.). The Accessibility on the return. Anyone paid to pre-nesses. If your SSN has been transcripts. Helpline does not have access to pare tax returns for others should lost or stolen or you suspect your IRS account. For help with tax have a thorough understanding of • View digital copies of select you’re a victim of tax-related law, refunds, or account-related is-tax matters. For more information notices from the IRS. identity theft, you can learn sues, go to IRS.gov/LetUsHelp . on how to choose a tax preparer, what steps you should take. • Approve or reject authoriza-go to Tips for Choosing a Tax Alternative media preference. tion requests from tax profes-• Get an Identity Protection PIN Preparer on IRS.gov. Form 9000, Alternative Media Pref-sionals. (IP PIN). IP PINs are six-digit erence, or Form 9000(SP) allows numbers assigned to taxpay-Get a transcript of your return. you to elect to receive certain types Employers can register to use ers to help prevent the misuse With an online account, you can of written correspondence in the Business Services Online. The of their SSNs on fraudulent access a variety of information to following formats. Social Security Administration federal income tax returns. help you during the filing season. (SSA) offers online service at When you have an IP PIN, it • Standard Print. You can get a transcript, review SSA.gov/employer for fast, free, prevents someone else from your most recently filed tax return, • Large Print. and secure W-2 filing options to filing a tax return with your and get your adjusted gross in-CPAs, accountants, enrolled • Braille. SSN. To learn more, go to come. Create or access your on-agents, and individuals who proc-IRS.gov/IPPIN . line account at IRS.gov/Account . • Audio (MP3). ess Form W-2, Wage and Tax Ways to check on the status of Statement; and Form W-2c, Cor-• Plain Text File (TXT). Tax Pro Account. This tool lets your refund. your tax professional submit an au-rected Wage and Tax Statement. • Braille-Ready File (BRF). thorization request to access your • Go to IRS.gov/Refunds . Business tax account. If you are Disasters. Go to IRS.gov/ individual taxpayer IRS OLA. For • Download the official IRS2Go a sole proprietor, a partnership, an DisasterRelief to review the availa-more information, go to IRS.gov/ app to your mobile device to S corporation, a C corporation, or a ble disaster tax relief. TaxProAccount . check your refund status. single-member limited liability com-Getting tax forms and publica-Using direct deposit. The safest pany (LLC), you can view your tax • Call the automated refund hot-tions. Go to IRS.gov/Forms to and easiest way to receive a tax re-information on record with the IRS line at 800-829-1954. view, download, or print all the fund is to e-file and choose direct and do more with a business tax forms, instructions, and publica-deposit, which securely and elec-The IRS can’t issue re-account. Go to IRS.gov/ tions you may need. Or you can go tronically transfers your refund di-funds before mid-February BusinessAccount for more informa-! to IRS.gov/OrderForms to place an rectly into your financial account. CAUTION for returns that claimed the tion. order. Direct deposit also avoids the pos-EITC or the additional child tax IRS social media. Go to IRS.gov/ sibility that your check could be credit (ACTC). This applies to the Mobile-friendly forms. You’ll SocialMedia to see the various so-lost, stolen, destroyed, or returned entire refund, not just the portion need an IRS Online Account (OLA) cial media tools the IRS uses to undeliverable to the IRS. Eight in associated with these credits. to complete mobile-friendly forms share the latest information on tax 10 taxpayers use direct deposit to that require signatures. You’ll have changes, scam alerts, initiatives, receive their refunds. If you don’t Making a tax payment. The IRS the option to submit your form(s) products, and services. At the IRS, have a bank account, go to recommends paying electronically online or download a copy for mail-privacy and security are our high-IRS.gov/DirectDeposit for more in-whenever possible. Options to pay ing. You’ll need scans of your est priority. We use these tools to formation on where to find a bank electronically are included in the documents to support your sub-share public information with you. or credit union that can open an ac-list below. Payments of U.S. tax mission. Go to IRS.gov/ Don’t post your social security count online. must be remitted to the IRS in U.S. MobileFriendlyForms for more in-number (SSN) or other confidential dollars. Digital assets are not ac-formation. Reporting and resolving your information on social media sites. cepted. Go to IRS.gov/Payments tax-related identity theft issues. Always protect your identity when for information on how to make a Getting tax publications and in-using any social networking site. structions in eBook format. • Tax-related identity theft hap-payment using any of the following The following IRS YouTube Download and view most tax publi-pens when someone steals options. channels provide short, informative cations and instructions (including your personal information to • IRS Direct Pay : Pay taxes from videos on various tax-related top-the Instructions for Form 1040) on commit tax fraud. Your taxes your bank account. It’s free ics in English and ASL. mobile devices as eBooks at can be affected if your SSN is and secure, and no sign-in is IRS.gov/eBooks . • Youtube.com/irsvideos . required. You can change or IRS eBooks have been tested cancel within 2 days of sched-• Youtube.com/irsvideosASL . using Apple’s iBooks for iPad. Our uled payment.

128 Publication 17 (2025)





• Debit Card, Credit Card, or Filing an amended return. Go to the service you need without long you’ve tried and been unable


Digital Wallet: Choose an ap- IRS.gov/1040X for information and wait times. Before you visit, go to to resolve your issue with the

proved payment processor to updates. IRS.gov/TAC to find the nearest IRS, or if you believe an IRS



encryption technology to ensure • pay online or by phone. TAC and to check hours, available system, process, or procedure Checking the status of your services, and appointment options. just isn’t working as it should. Electronic Funds Withdrawal : amended return. Go to IRS.gov/ Or, on the IRS2Go app, under the Schedule a payment when fil-WMAR to track the status of Form • To get help any time with gen-Stay Connected tab, choose the ing your federal taxes using 1040-X amended returns. eral tax topics, visit Contact Us option and click on “Lo-tax return preparation soft-www.TaxpayerAdvocate.IRS.g It can take up to 3 weeks cal Offices.” ware or through a tax profes-ov . The site can help you with ! sional. from the date you filed common tax issues and situa-your amended return for it CAUTION ————————————— tions, such as what to do if • Electronic Federal Tax to show up in our system, and pro-——————————— you make a mistake on your Payment System : This is the cessing it can take up to 16 weeks. return or if you get a notice best option for businesses. Below is a message to you from from the IRS. Enrollment is required. Understanding an IRS notice or the Taxpayer Advocate Service, an independent organization estab-• TAS works to resolve • Check or Money Order : Mail letter you’ve received. Go to lished by Congress. your payment to the address IRS.gov/Notices to find additional large-scale (systemic) prob-information about responding to an listed on the notice or instruc-lems that affect many taxpay-IRS notice or letter. tions. ers. You can report systemic The Taxpayer issues at www.IRS.gov/ • Cash : You may be able to pay IRS Document Upload Tool. Advocate Service SAMS . (Be sure not to include your taxes with cash at a par-You may be able to use the Docu-(TAS) Is Here To ticipating retail store. ment Upload Tool to respond digi-any personal identifiable infor-mation.) tally to eligible IRS notices and let-• Same-Day Wire : You may be Help You ters by securely uploading required able to do same-day wire from How Do I Contact TAS? documents online through IRS.gov. What Is the Taxpayer your financial institution. Con-For more information, go to tact your financial institution Advocate Service? TAS has offices in every state, the IRS.gov/DUT . District of Columbia, and Puerto for availability, cost, and time The Taxpayer Advocate Service Rico. To find your local advocate’s frames. Schedule LEP. You can use (TAS) is an independent organiza-number: Schedule LEP (Form 1040), Re-tion within the Internal Revenue Note: The IRS uses the latest quest for Change in Language Service (IRS). TAS helps taxpayers • Go to Preference, to state a preference to resolve problems with the IRS, www.TaxpayerAdvocate.IRS.g that the electronic payments you receive notices, letters, or other makes administrative and legisla-ov/Contact-Us , make online, by phone, or from a written communications from the tive recommendations to prevent or • Check your local directory, or mobile device using the IRS2Go IRS in an alternative language. You correct the problems, and protects app are safe and secure. Paying • Call TAS toll free at may not immediately receive writ-taxpayer rights. We work to ensure electronically is quick and easy. 877-777-4778. ten communications in the reques-that every taxpayer is treated fairly and that you know and understand ted language. The IRS’s commit-What if I can’t pay now? Go to ment to LEP taxpayers is part of a your rights under the Taxpayer Bill IRS.gov/Payments for more infor-What Are My Rights as a multi-year timeline that began pro-of Rights. We are Your Voice at the mation about your options. Taxpayer? viding translations in 2023. You will IRS. • Apply for an online payment The Taxpayer Bill of Rights de-continue to receive communica-agreement ( IRS.gov/OPA ) to scribes ten basic rights that all tax-tions, including notices and letters, How Can TAS Help Me? meet your tax obligation in payers have when dealing with the in English until they are translated monthly installments if you TAS can help you resolve problems IRS. Go to to your preferred language. can’t pay your taxes in full to-that you haven’t been able to re-www.TaxpayerAdvocate.IRS.gov/ Contacting your local TAC. day. Once you complete the solve with the IRS on your own. Al-Taxpayer-Rights for more informa-Keep in mind, many questions can online process, you will re-ways try to resolve your problem tion about the rights, what they be answered on IRS.gov without ceive immediate notification of with the IRS first, but if you can’t, mean to you, and how they apply to visiting a TAC. Go to IRS.gov/ whether your agreement has then come to TAS. Our services specific situations you may en-LetUsHelp for the topics people been approved. are free. counter with the IRS. TAS strives to ask about most. If you still need protect taxpayer rights and ensure • Use the Offer in Compromise • TAS helps all taxpayers (and help, TACs provide tax help when a the IRS is administering the tax law Pre-Qualifier to see if you can their representatives), includ-tax issue can’t be handled online or in a fair and equitable way. settle your tax debt for less ing individuals, businesses, by phone. All TACs now provide than the full amount you owe. and exempt organizations. service by appointment, so you’ll For more information on the You may be eligible for TAS know in advance that you can get Offer in Compromise program, help if your IRS problem is

go to IRS.gov/OIC. causing financial difficulty, if



To help us develop a more useful index, please let us know if you have ideas for index entries.



Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

529 plans (See Qualified tuition Accidental death benefits 49



10% tax for early withdrawal from programs) A Accounting methods 12 IRA or retirement plan 59 1/2 rule: Accrual method (See Accrual (See Early withdrawal from Abroad, citizens traveling or Age 59 1/2 rule 87 method taxpayers) deferred interest account, working 8 , 52 60-day rule 83 Cash method (See Cash method subheading: Tax on) (See also Foreign employment) taxpayers) 72 rule: 2025 Tax Rate Schedules 125 Absence, temporary 28 , 34 Age 72 rule 85 Accounting periods 12 401(k) plans: Accelerated death benefits 70 Calendar year 10 , 12 , 48 Tax treatment of contributions 51 Accident insurance 48 Change in, standard deduction 403(b) plans: Cafeteria plans 53 not allowed 92 Rollovers 84 , 90 Long-term care 48 , 54 Fiscal year 12 , 42



Publication 17 (2025) 129 Accounting periods (Cont.)

Fringe benefits 48 American Indians (See Indians) Bequests 75, 76 Certificates of deposit (CDs) 60,



Accuracy-related penalties deduction of 28 arrangements (IRAs)) 96 Annuities: Head of household, qualifying 20 Change of address 18 Decedent’s unrecovered person to file as 25 , 26 Change of name 13 , 44 Activities not engaged in for Accrual method taxpayers 13 American Samoa: (See also Estate beneficiaries) 77 Taxes paid during tax year, (See also Inheritance) (See also Individual retirement Income from 8 Birth of child



Adoption: 28, 34, 37 Bookkeeping (See Recordkeeping Babysitting 47 Signing return for spouse 22 requirements) Care providers 47 Dependency allotments 35 ATIN 13 Breach of contract: Expenses 36 Disability pay 52 Child tax credit 109 Damages as income 74 Child custody 29 Disability pensions 53 Credits: Bribes 74 , 103 Child support 74 GI Bill benefits 36 Married filing separately 23 Brokers: Child tax credit 8 , 26, 108-110 Military quarters allotments 35 Employer assistance 49 IRAs with 79 Claiming the credit 110 Real estate taxes when receiving Taxpayer identification Commissions 79 Limit on credit 110 housing allowance 99 number 13 , 37 Burial: Limits 23 Rehabilitative program Age: payments 52 Expenses 102 Married filing separately 23 Children’s investments Retiree’s pay withholding 37 Business expenses: Child, qualifying 28 (See Children, subheading: Job search expenses 76 Children 49 Investment income of child Retirees’ pay: under age 18) Taxable income 52 Reimbursements 39 , 47 (See also Adoption) Additional child tax credit 110 Gross income and filing Wages 52 Returning excess business requirements (Table 1-1) 6 expenses 39 Adoption (See Adopted child) Assistance (See Tax help) Business tax credits: Babysitters 47 IRAs: Assistance, tax (See Tax help) Distribution prior to age Claim for refund 19 Birth of child: ATIN (Adoption taxpayer 59 1/2 87 Head of household, qualifying identification number) 13 Distribution required at age person to file as 25 , 26 Attachment of wages 13 C 72 85 , 87 Social security number to be Attachments to return 14 Cafeteria plans 53 obtained 37 Roth IRAs 88 , 91 Attorney contingency fee: Calendar year taxpayers: Standard deduction for age 65 or Care providers 47 As income 74 older 92 Accounting periods 10 , 12 , 48 (See also Child care) Attorney fees, whistleblower Age test 28 Filing due date 10 Credit for 8 awards: (See also Child tax credit) Agents: California Nonoccupational As income 74 Disability Benefit Fund 97 Custody of 29 Income paid to 13 Attorneys' fees 102 , 104 Campaign contributions 74 Death of child: Signing return 14 Automatic extension of time to Presidential Election Campaign Head of household, qualifying Agricultural workers (See Farmers) file 11 Fund Adjusted gross income (AGI): 21 Standard deduction for 92, 93 Charitable distributions, Anthrax incidents (See Terrorist Bonds: qualified 85 Modified (See Modified adjusted attacks) gross income (MAGI)) Amortization of premium 104 Check-writing fees 103 Antiques (See Collectibles) Issued at discount 60 Checks: Retirement savings contribution Appraisal fees 102 credit 23 Original issue discount 60 Constructive receipt of 13 Archer MSAs 76 Adjustments 107 Sale of 60 Child and dependent care credit: Contributions 49 Administrators, estate Savings 57 Married filing separately 23 Armed Forces: (See Executors and Tax-exempt 60 Child born alive 28 Combat zone: administrators) Bonuses 39 , 47 , 76 Child care: Extension to file return 12 Adopted child Address 79 obtained 37 16 Life insurance proceeds when Unrecovered investment profit 74 Social security number to be Chaplains: IRAs as investment in 14 Change of 105 Birth of dependent 34 death in line of duty 70 18 Withholding 14 , 40 Blind persons: Charitable contributions: Foreign 16 Annulled marriages: Exemption from withholding 39 Gifts to reduce public debt 16 P.O. box 16 Filing status



Aliens: IRA prohibited transactions in 67 86 Back pay, award for 47 Gifts to 56 Capital assets: Emotional distress damages Investment income of child under Coal and iron ore 72 Dual-status (See Dual-status under title VII of Civil Rights age 18: taxpayers) Act of 1964 74 Capital expenses 36 Dependent filing requirements Filing required 8 Backup withholding 40 , 44 , 55 Capital gains or losses: (Table 1-2) 7 Nonresident (See Nonresident Penalties 40 Hobbies, sales from Interest and dividends 8 aliens) Bad debts: collections 76 Parents’ election to report on Resident (See Resident aliens) Claim for refund 19 Sale of personal items 77 Form 1040 or 1040-SR 8 Alimony: Recovery 70 Carpools 74 Kidnapped 29 , 33 Reporting of income 74 Balance due 107 Carrybacks: Signing return, parent for child 15 Alternative filing methods: Bankruptcy: Business tax credit Standard deduction for 92 , 93 carrybacks 19 Electronic (See E-file) Alaska Unemployment dividends 74 under age 18) Resident of 27 , 33 B Earnings of 8 Compensation Fund 97 Cancellation of debt 67 Filing requirements 8 Alcoholic beverages: Babysitting 47 Exceptions to treatment as As dependents (Table 1-2) 7 income Alaska Permanent Fund 103 Dividends of (See this heading: Awards (See Prizes and awards) Investment income of child Canada: Agriculture (See Farming) 14 person to file as 25, 26 Form 4868 11 Campaign expenses



Alternative minimum tax Canceled debt not deemed to be Stillborn 28 Cars 50 , 77 income 69 Support of (See Child support) (See also Travel and transportation) (AMT) 107 Banks: Tax credit (See Child tax credit) Personal property taxes on, Ambulance service personnel: IRAs with 79 deduction of 100 Transporting school children 77 Life insurance proceeds when Barter income 67 Cash: Unearned income of 55 death in line of duty 70 Definition of bartering 67 Rebates 74 Chronic illness: Amended returns 18 Form 1099-B 67 (See also Form 1040-X) Cash method taxpayers 12 Accelerated payment of life Basis: insurance proceeds Itemized deduction, change to Real estate transactions, tax Cost basis: (See Accelerated death standard deduction 94 allocation 97 IRAs for nondeductible benefits) Standard deduction, change to Taxes paid during tax year, contributions 82 , 85 Long-term care (See Long-term itemized deductions 94 deduction of 96 Beneficiaries 75 care insurance contracts) American citizens abroad 7 Cash rebates 74 (See also Estate beneficiaries) Citizen or resident test 27 (See also Citizens outside U.S.) Casualty insurance: (See also Trust beneficiaries) Citizens outside U.S.: Employment (See Foreign Reimbursements from 74 Earned income exclusion 3 employment) Casualty losses 102 , 104

130 Publication 17 (2025) Citizens outside U.S. (Cont.)

Employment (See Foreign Corrections (See Errors) Changing claim after filing, need Disaster Relief and Emergency

employment) Cost basis: to amend 18 Assistance Act:

Extension of time to file 11 IRAs for nondeductible Itemizing (See Itemized Grants 73

Filing requirements deductions) 7 contributions 82 , 85 Unemployment assistance 72

Withholding from IRA Cost-of-living allowances 48 Pass-through entities 102 Grants or payments 73

distributions 86 Repayments 71 Coupon bonds 61 Disclosure statement 20

Civil suits 74 Court awards and damages Social security and railroad Discount, bonds and notes issued

(See also Damages from lawsuits) (See Damages from lawsuits) retirement benefits 66 at 60

Civil tax penalties (See Penalties) Cousin 34 Standard deduction 92, 94 Distributions:



Clergy 8 Credit cards: Student loan interest deduction Qualified charitable 85 Housing (See Student loans) 51 Benefits, taxability of Required minimum Theft loss

Real estate taxes when insurance 74 104 distributions 83, 85



Life insurance proceeds when allowance 99 Credit for child and dependent Limit 51 arrangements (IRAs)) receiving housing Deferred compensation: (See also Individual retirement Payment of taxes 3



Commissions Signing return for spouse 12 levels (Table 1-2) 7 Real estate taxes, allocation Earned income (See Earned of 98 22 income credit) Married, filing joint return 26 , 30 39 Domestic help: Qualifying child 28 Lifetime learning (See Lifetime Withholding 37 Advance 47 learning credit) Qualifying relative 33 IRAs with brokers 79 Domestic help, can’t be claimed Custodial fees 102 Social security number 13 as dependent 26 Sharing of (kickbacks) 76 Custody of child 29 Adoption taxpayer Donations (See Charitable Unearned, deduction for identification number 13 , contributions) repayment of 47 37 D Down payment assistance 74 Common law marriage 22 Alien dependents 37 Dual-status taxpayers 8 Community property 7 , 58 Damages from lawsuits 74 Standard deduction for 93 Joint returns not available 23 IRAs 79 Dating your return 14 Dependents not allowed to claim dependents Married filing separately 23 Daycare centers 47 26 Standard deduction 92 (See also Child care) Due dates 10 , 11 Commuting expenses 103 Depletion allowance 72 De minimis benefits 49 Employer-provided commuter Deposits: 2024 dates (Table 1-5) 11 Extension (See Extension of time vehicle 50 Deadlines (See Due dates) Loss on 102 to file) Compensation 47 Death (See Decedents) Depreciation: (See also Wages and salaries) Nonresident aliens’ returns 11 Death benefits: Home computer 102 Defined for IRA purposes 78 Dues: Accelerated 70 Differential wage payments 48 Defined for Roth IRA Club 103 Life insurance proceeds (See Life Differential wages: purposes 88 insurance) Dwelling units: Wages for reservists: Employee 47 Public safety officers who died or Cooperative (See Cooperative Military reserves 52 housing) Miscellaneous compensation 47 were killed in line of duty, tax Direct deposit of refunds 15 exclusion 70 Nonemployee 75 Directors' fees 75 Death of child 28 Unemployment 72 E Disabilities, persons with: Death of dependent 34 Computation of tax 14 Accrued leave payment 53 E-file 3 , 6 , 8 Debt instruments (See Bonds or Equal amounts 14 Armed Forces 52 Notes) Extensions of time to file 11 Negative amounts 14 Blind (See Blind persons) Coal and iron ore 102 Stockholder debts when canceled Qualifying person 110 Dependent taxpayer test 26 as 67 72 Credit for the elderly or the Dependents 8 , 26 Collectibles: Divorced parents 29 , 33 disabled 108 (See also Child tax credit) Divorced taxpayers 74 IRA investment in 86 Credit or debit cards: Birth of 34 (See also Alimony) Colleges and universities: Payment of taxes 11 Born and died within year 13 , 37 Child custody 29 Education costs 76 Credits 106 , 108 Death of 34 (See also Qualified tuition Estimated tax payments 44 American opportunity 23 Filing requirements 8 programs) Filing status 21 , 22 Child tax (See Child tax credit) Earned income, unearned Combat zone: IRAs 80 , 84 Credit for other dependents 108 income, and gross income Extension to file return Clerical help, deductibility of Pensions 70 110 (See Alaska Permanent Fund Real estate transactions, tax 51 dividends) Claiming the credit 110 allocation 98 Special income rules 51 Fees to collect 102 Limit on credit 110 Delivery services 11 chaplain died in line of Credit for other dependents 108, Delinquent taxes: Alaska Permanent Fund duty care expenses 108 Nonqualified plans 48 Dividends:



Confidential information: Rounding off dollars Debts 19, 70 On time filing 11 14 (See also Bad debts) Cafeteria plans 53 Early withdrawal from deferred Canceled (See Cancellation of Credit for (See Elderly or interest account: Privacy Act and Paperwork debt) disabled, credit for) Higher education expenses, Reduction information 3 Nonrecourse 67 Insurance costs 53 exception from penalty 78 Constructive receipt of Paid by another 13 Military and government IRAs: income 12 , 13 , 61 pensions 53 Public, gifts to reduce 16 Early distributions, defined 87 Contributions 16 , 74 Public assistance benefits 73 Recourse 67 Penalties 85 , 87 (See also Campaign contributions) Reporting of disability pension Earned income: (See also Charitable contributions) Refund offset against 9 , 15 income 53 Defined: Nontaxable combat pay 78 Deceased taxpayers Retirement, pensions, and (See Decedents) For purposes of standard Political 104 profit-sharing plans 53 Decedents 7 deduction 93 Reservist repayments 79 Signing of return by (See also Executors and Dependent filing requirements Convenience fees 102 court-appointed administrators) (Table 1-2) 7 Conversion (See specific retirement representative 14 Deceased spouse 7 Earned income credit 108 or IRA plan) Social security and railroad Due dates 11 Filing claim 8 Cooperative housing: retirement benefits, Filing requirements 7 Married filing separately 23 Real estate taxes, deduction deductions for 66 Savings bonds 58 Education: of 97 Workers’ compensation 54 Spouse's death 22 Savings bond program 59 Taxes that are deductible Disabled: (Table 11-1) 99 Standard deduction 92 Education credits: Child 28 Copyrights: Declaration of rights of taxpayers: Married filing separately 23 Dependent 34 Infringement damages 74 IRS request for information 3 Education expenses: Disaster Assistance Act of 1988: Royalties 72 Deductions 70 , 92 Employer-provided Withholding 40 (See also Recovery of amounts (See Educational assistance) Corporations 70 Disaster relief 54 , 73 previously deducted) (See also S corporations) Tuition (See Qualified tuition (See also Terrorist attacks) Casualty losses 104 programs) Director fees as self-employment income 75

Publication 17 (2025) 131

Educational assistance: Errors: Group-term life insurance 50 Gross income levels

Employer-provided 49 Corrected wage and tax Long-term care insurance (Table 1-1) 6

Scholarships (See Scholarships statement 44 contracts 54 Individual taxpayers 7

and fellowships) Discovery after filing, need to Parking fees, Joint filing 22

Tuition (See Qualified tuition amend return 18 employer-provided 50 (See also Joint returns)

programs) Refunds 18 Public safety officers who died or Late filing penalties



Elderly persons: Married filing separately 77 23 deductible 98 Unmarried persons (See Single Scholarships 77 taxpayers) Estate beneficiaries: Strike benefits 77 When to file 10 Credit for (See Elderly or IRAs (See Individual retirement disabled, credit for) Elderly or disabled, credit for: death benefits 70 Taxes placed in, when Most taxpayers (Table 1-1) 6 Sale of home EIC (See Earned income credit) Escrow: were killed in line of duty, (See Penalties)

arrangements (IRAs)) Executors and administrators 7 Where to file 16

Exemption from withholding Losses of estate 75 Exempt-interest dividends 56 Who must file 7, 8 39

Home for the aged 35 Receiving income from estate 75 Exemptions: Filing status 7, 21-26

Long-term care (See Long-term Estate tax: From withholding 39 Annulled marriages 21

care insurance contracts) Deduction 100 Expenses paid by another 75 Change to, after time of filing 18

Nutrition Program for the Estates 75 Extension of time to file 11 Divorced taxpayers 21

Elderly 74 (See also Estate beneficiaries) Automatic 11 Head of household 21, 24



Election precinct officials: 10 (See also Estate tax) Inclusion on return 11 Married filing separately 23 Estimated: Surviving spouse 21 Fees, reporting of 75 Credit for 44 F Unmarried persons 7 , 21 Elective deferrals: Tax Counseling for the Elderly older 92 Tax 100, 104 E-file options 11 Joint returns 22 Standard deduction for age 65 or Income 75 Citizens outside U.S. 11 Qualifying person to file as 24



Embezzlement: Change in estimated tax 42 Financially disabled persons 19 (See also Children) Credit for 37 , 44 Fines 11 , 20 , 21 Farmers: Reporting embezzled funds 76 Definition 37 (See also Penalties) Estimated tax 41 Emergency medical service Divorced taxpayers 44 Deductibility 103 Withholding 37 personnel: Figuring amount of tax 42 Firefighters: Farming: Life insurance proceeds when First period, no income subject to Life insurance proceeds when Activities not engaged in for death in line of duty 70 estimated tax in 42 death in line of duty 70 profit 74 Emotional distress damages 74 Fiscal-year taxpayers 42 Volunteer firefighters: Canceled debt, treatment of 69 Employee benefits 48 , 49 Married taxpayers 41 IRAs 80 Federal employees: (See also Fringe benefits) Name change Electronic payment options Amount to pay to avoid Standard deduction 92 Fair rental value 35 3 penalty 42 Financial institutions 79 Family 8 , 109 Electronic reporting: Avoiding 41 (See also Banks) (See also Child tax credit) Returns (See E-file) Electronic filing (See E-file) Limits 51 Estimated tax 37 Failure to comply with tax laws Final return for decedent: (See Penalties) Payment vouchers 43 (See also Single taxpayers)

Employee business expenses: Accrued leave payment 48 44 Fiscal year 12, 42

Reimbursements Cost-of-living allowances 48 39 , 47 Overpayment applied to Not required 41 Fishermen:

Returning excess Disability pensions 53 15 Indian fishing rights 76



Employees Home computer 53 102 Figuring amount of each Food benefits: Terrorist attack 54 Miscellaneous 101 payment 42 Nutrition program for the FECA payments 54 39 , 48 , 49 Schedule 42 elderly 74 (See also Fringe benefits) Employee expenses: Based on years of service 53 Payments 16 , 43 Estimated tax 41 Exclusion, conditions for 39 Payment vouchers 43 Fishers: Awards for service When to start Federal Employees’ 42 Food stamps 35 Compensation Act (FECA) 47 Who must make 41 Foreign employment 8, 52 payments 54 Business expenses Penalty for underpayment 37 , 42 , Employment abroad 52 Federal government: (See Employee business 45 Social security and Medicare expenses) Employees (See Federal Saturday, Sunday, holiday rule 42 taxes 52 employees) Form W-4 to be filled out when Separate returns 44 U.S. citizen 52 starting new job 38 Federal income tax: Social security or railroad Waiver of alien status 52 Fringe benefits 39 Not deductible 100 retirement benefits 63 Foreign governments, employees Jury duty pay 76 Deductibility (Table 11-1) 99 State and local income taxes, of 52 Overseas employment Federal judges: deduction of



Employers: (See Foreign employment) 96 Foreign income: Employer retirement plan Unemployment compensation 73 Earned income exclusion 3 coverage 80 Excise taxes 85 Reporting of 3 Educational assistance from Fees 75 (See also Penalties) Foreign income taxes: (See Educational assistance) (See also specific types of Deductibility (Table 11-1) 99 deductions and income) Deduction of 97 Form W-4, having new employees IRAs for failure to take minimum fill out 38 Professional license 104 Form 1116 to claim credit 100 distributions 85 Overseas employment Fellowships (See Scholarships and Schedule A or Form 1040 or Roth IRAs 90 (See Foreign employment) fellowships) 1040-SR reporting 100 Exclusions from gross income: Withholding rules 38 FICA withholding 12 , 37 , 48 Definition of 96 Accelerated death benefits 70 (See also Social security and Employment: Foreign nationals (See Resident Canceled debt 69 Medicare taxes) aliens) Agency fees 74 Commuting benefits for (See also Withholding) Foreign students 28 Taxes 48 employees 50 Fiduciaries 7 , 79 (See also Social security and Forgiveness of debt De minimis benefits 49 (See also Executors and (See Cancellation of debt) Medicare taxes) administrators) Disability pensions of federal FICA withholding 12 Form 11 , 51 , 62 (See also Trustees) employees and military 53 (See also Withholding) 1040 26 , 108 Fees for services 75 Education Savings Bond Employment taxes 37 , 38 , 44 Alien taxpayer identification Program 76 Prohibited transactions 86 Endowment proceeds 69 numbers 37 Educational assistance from Figuring taxes and credits 63 , 106 Energy assistance 74 Armed Forces’ retirement employer 49 (See also Worksheets) pay 52 Energy conservation: Elective deferrals, limit on Filing requirements 6-21 , 23 Child care providers 47 Measures and modifications 74 exclusion 51 (See also Married filing separately) Clergy pension 51 Subsidies 74 Employee awards 47 Calendar year filers 10 Corporate director fees 75 Utility rebates 77 Energy conservation Citizens outside U.S. 7 Disability retirement pay 53 Equitable relief (See Innocent subsidies 74 , 77 Dependents 7 , 8 FECA benefits 54 spouse relief) Foreign earned income 3 Electronic (See E-file) Foster-care providers 75 Frozen deposit interest 76 Extensions 11 Kickbacks 76

132 Publication 17 (2025) Form (Cont.)

Notary fees 75 1120S: Employer retirement plan Form W-2G:

Oil, gas, or mineral interest S corporation income 70 participation indicated 80 Gambling winnings withholding



Wages and salary 71 51 shown on 96 Power of attorney and Fringe benefits 48 , 49 Form W-4: declaration of reporting 47 representative 14 , 23 W-2G: Employee withholding allowance Workers’ compensation Rental income and statement 12, 14, 47, 48, 2848: Withheld state and local taxes expenses royalties 72 2555 110 Employer-reported income statement 40, 44

1040 or 1040-SR: withholding statement 76 General business credit 19 Form W-4S: W-4V: 54 3800: Gambling winnings certificate 38, 41



1040-NR: expenses 30, 35 Notice Concerning Fiduciary year’s tax 43 Foster child 28 , 30 , 34, 35 Nonresident alien return 11 Relationship 14 Form 1040 or 1040-SR: 1040-X: 6251 107 Foster Grandparent Program 53 Foreign income taxes, deduction Found property 75 Amended individual return 18 8275: of 100 Annulled marriages 21 Disclosure statement 20 Fraud: Schedule A: Penalties 20 , 39 Change of filing status 23 8275-R: State and local income taxes, Completing 18 Regulation disclosure Reporting anonymously to IRS3 deduction of 100 statement 20 Fringe benefits: Filing 18 State benefit funds, Itemized deduction, change to 8379: mandatory contributions Accident and health standard deduction 94 Injured spouse claim 15 to 97 insurance 48 Accounting period Standard deduction, change 8606: Taxes, deduction of 100 48 to itemized deductions 94 IRA contributions, Schedule C: Adoption, employer assistance 49 1040, Schedule A: Nondeductible 78 , 82 , 86 Real estate or personal Unearned commission, IRA contributions, property taxes on property Archer MSA contributions 49 deduction for repayment Recharacterization of 85 used in business, De minimis benefits 49 of 47 8615 55 deduction of 100 Education assistance 49 1040, Schedule C: 8814 55 Schedule E: Form W-2 48 Barter income 67 8815 59 Real estate or personal Group-term life insurance Child care providers 47 property taxes on rental 8822: premiums 49 property, deduction of 100 Corporate director fees 75 Change of address 18 Holiday gifts 49 Schedule F: Forgiveness of debts 67 8839: Retirement planning services 50 Real estate or personal Foster-care providers 75 Qualified adoption Taxable income 48 property taxes on property Kickbacks 76 expenses 49 Transportation 50 used in business, Notary fees 75 8853: deduction of 100 Withholding 39 Oil, gas, or mineral interest Accelerated death Self-employment tax, deduction Frozen deposits: royalties 72 benefits 70 of 100 Interest on 76 Rental income and 1040 or 1040-SR, Schedule A: Railroad retirement benefits, Form(s) 1099 44 Automatic extension of time to request 37 reporting on 63 file 11 , 37 Foster care: W-7A: Social security benefits, Filing electronic form 11 Care providers' payments 75 reporting on 63 Adoption taxpayer Filing paper form 11 Child tax credit 109 identification number Use of 22 , 23 5329: Difficulty-of-care payments 75 request 13 , 37 Required minimum Emergency foster care, Form 1040: Charitable contributions 16 distributions, failure to maintaining space in home Estimated tax payments 44 1040 or 1040-SR, take 88 for 75 Gambling winnings 40 Schedule SE 8 56: Foster care payments and Overpayment offset against next IRAs 73 86 , 88 Tax return transcript Unemployment compensation, W-7: voluntary withholding Presidential Election request 17 Campaign Fund 14 Individual taxpayer request 40 4868 11 , 37 identification number Attachments to Voluntary withholding 14 4506-T: Form W-4V 40 request Address 16 4506 17 Sick pay withholding request 40



1065: 51 network transactions 77 Expenses 102 8879: Form 1099-MISC: Authorization for E-file Partnership income 70 Withheld state and local taxes 96 provider to use G 1098: Form 1099-NEC: self-selected PIN 10 Mortgage interest Gains and losses 23 Withheld state and local taxes 96 9465: statement 70 (See also Losses) Form 1099-R: Installment agreement 1099: Claim for refund for loss 19 request 16 Withheld state and local taxes Taxable income report 1040, Schedule E: 49 Form 1099-K: Funerals: Royalties 72 8857: Payment card and third-party Clergy, payment for 51 Innocent spouse relief 22 1040, Schedule SE expenses 71 care insurance Estimated tax 42, 43 Funeral expenses 36 contracts Archer MSAs and long-term Form 1040-ES: IRA rollover period extension 83



1099-B: 12 Gambling 105 shown on 96 Form 8919: Hobby losses76 Form 1099-S: Uncollected social security Barter income 67 Passive activity 23 and Medicare tax on Real estate transactions 1099-C: proceeds 98 Gambling winnings and wages 47 losses 75 , 105 Cancellation of debt 67 RRB-1042S: Form 1116: Withholding 40 , 44 1099-DIV: Foreign tax credit 100 Railroad retirement benefits Garbage pickup: Dividend income for nonresident aliens 62 Form 8332: statement 51 Deductibility (Table 11-1) 99 RRB-1099: Release of exemption to 1099-G: Railroad retirement noncustodial parent 29 Garnishment and attachment 13 State tax refunds 70 benefits 62 Form W-2: Gas royalties 72

1099-INT 56, 61 SS-5: Employer-reported income Gems:

1099-MISC: Social security number statement 44 IRA prohibited transactions in 86

Nonemployee request 13, 36 Filing with return 44 General due dates, estimated

compensation 75 SSA-1042S: Separate form from each tax 42

1099-OID 60 Social security benefits for employer 44 GI Bill benefits 36

1099-R 59 nonresident aliens 62 Withheld state and local taxes 96 Gift taxes:

IRA distributions 86, 88 SSA-1099: Form W-2c: Not deductible 100

Life insurance policy Social security benefits 62 Corrected wage and tax Gifts:

surrendered for cash 69 W-2: statement 44 Holiday gifts 49

Retirement plan Election precinct officials' Not taxed 76

distributions 14 fees 75 To reduce the public debt 16

Publication 17 (2025) 133

Gold and silver: Income 47, 66, 74 Establishing account 78 Information returns 12, 14, 47, 48,



Gross income test (Table 1-2) 15 7 Paid to third party 13 Interest on, treatment of 78 Claim for refund15 34 Partnership 70 Kay Bailey Hutchison Spousal Group-term life insurance: IRAs 79 , 80 Innocent spouse relief: Prepaid 13 Married couples (See this Form 8857 22 Accidental death benefits 49 Recovery 70 heading: Kay Bailey Hutchison Joint returns 22 Definition 49 Royalties 72 Spousal IRAs) Insolvency: Exclusion from income 50 S corporation 70 Modified adjusted gross income Canceled debt not deemed to be Limitation on 49 Tax exempt 35 (MAGI): income 69 Permanent benefits 49 Underreported 18 Computation of 80 Installment agreements 16 Taxable cost, calculation of 49 Income taxes: Effect on deduction if covered Insurance: Guam: Federal (See Federal income tax) by employer retirement Accident (See Accident Income from 8 Foreign (See Foreign income plan (Table 9-1) 81 insurance) taxes) Effect on deduction if not Life 40 , 49 covered by employer H State or local (See State or local (See also Group-term life income taxes) retirement plan insurance) Handicapped persons (Table 9-2) 81 Income-producing expenses 102 (See also Life insurance) (See Disabilities, persons with) Worksheet 9-1 82 Indians: Reimbursements: Head of household 21 , 24 Nondeductible contributions 82 Fishing rights 76 From casualty insurance 74 Health: Early withdrawal 87 Taxes collected by tribal Insurance companies: Flexible spending Tax on earnings on 82 governments, deduction of 96 State delinquency proceedings, arrangement 49 Individual retirement Ordinary income, distributions IRA distributions not made Health insurance 48 arrangements (IRAs) 77 , 78 , as 85 due to 87 (See also Accident insurance) 83 , 88 Penalties 86 Insurance premiums: Reimbursement arrangement 49 (See also Rollovers) Early distributions (See Early Gross income: Gross 9-1) 82 (See also Estate beneficiaries) 34 Forms to use: IRAs (See Individual retirement Illegal activities 77 Age, higher filing threshold after Form 1099-R for reporting arrangements (IRAs)) 65 7 Interest 54 distributions 86 Not taxed 76 Jury duty pay 76 Form 8606 for nondeductible Defined 7 Inheritance tax: contributions 78 Filing requirements Life insurance proceeds 69 Deductibility of 100 (Table 1-1) 6 Nonemployee compensation 75 Inherited IRAs 76 , 82 , 83 Deduction 100 Dependent filing requirements Paid to agent 13 Required distributions 85 Injured spouse Grants, disaster relief Federal (See Federal employees) 67 (See also Form W-2) Excess contributions 86 Canceled debts 67 Partnerships to provide 70 73 Figuring modified AGI (Worksheet Constructive receipt of 12 , 13 , 61 Inheritance 75 Gratuities (See Tip income) Government employees: (See also Wages and salaries) (See also Form 1099) Where to open account 79 Bartering IRA investments in 86 (See also Alimony) Time of 79 51



Health coverage tax credit Savings account 49 withdrawal from deferred Medical (See also Roth IRAs) Life 36, 103 36 8 Administrative fees 79 , 102 interest account) Paid in advance 57 Health insurance premiums 36 Age 59 1/2 for distribution 87 Excess contributions 86 Insurance proceeds: Health Spa 103 Exception to rule 87 Form 8606 not filed for Dividends, interest on 56 nondeductible Help (See Tax help) Age 72: contributions 78 , 82 Installment payments 60 High income taxpayers: Distributions required at 85 , Life 60 87 Overstatement of Estimated tax 41 nondeductible Interest: Compensation, defined 78 Hobbies 102 contributions 82 Fees to collect 102 Contribution limits 79 Activities not engaged in for Prohibited transactions 86 Frozen deposits 57 profit 74 Age 50 or older, 79 Required distributions, failure Usurious 57 Losses 76 Under age 50, 79 to take 85 , 87 Interest income 54 Holiday gifts 49 Contributions 23 Prohibited transactions 86 Form 1099-INT 12 Holiday, deadline falling on 42 Designating year for which Recharacterization of contribution is made 79 Frozen deposits, from 76 Home: contribution 84 Recovery of income, on 70 Excess 86 Aged, home for 35 Reporting of: Filing before contribution is Savings bonds 76 Cost of keeping up 24 Distributions 86 made 79 (See also U.S. savings bonds) Worksheet 24 Recharacterization of Nondeductible 82 Tax refunds, from 18 Security system 103 contributions 85 Not required annually 79 Interest payments 70 Homeowners' associations: Required distributions 83 , 85 (See also Mortgages) Roth IRA contribution for same Charges 100 Excess accumulations 87 year 89 Canceled debt including 67 Deductibility (Table 11-1) 99 Retirement savings contribution Student loans deduction 23 Time of 79 credit 23 Hope credit: Withdrawal before filing due Interference with business Self-employed persons 78 Married filing separately 23 date 85 operations: Taxability 87 Host 69 Cost basis 82 , 85 Damages as income 74 Distributions 85 Household furnishings: Deduction for 79 Internal Revenue Service (IRS): Time of taxation 78 Antiques (See Collectibles) Participant covered by Fraud or misconduct of employee, Transfers permitted 83 Household members 21 employer retirement plan reporting anonymously 3 (See also Head of household) (Table 9-1) 81 To Roth IRAs 83 , 84 International employment Trustee administrative fees Household workers (See Domestic Participant not covered by 102 (See Foreign employment) help) employer retirement plan Trustee-to-trustee transfers 83 International organizations, (Table 9-2) Household workers, can’t claim as 81 employees of 52 IRA to Roth IRA 90 dependent 26 Phaseout 80 Types of 79 Internet: Housing 24 Definition of 78 Electronic filing over (See E-file) Withdrawals 85 , 86 (See also Home) Distributions: Early (See Early withdrawal Investments: Clergy 51 At age 59 1/2 87 from deferred interest Fees 102 Cooperative (See Cooperative Required minimum account) Seminars 103 housing) distributions (See this Required (See this heading: IRAs (See Individual retirement heading: Required Required distributions) arrangements (IRAs)) distributions) I Withholding 14 , 40 , 86 Itemized deductions: Divorced taxpayers 84 Individual taxpayer identification Changing from standard to Icons, use of 3 , 4 Early distributions (See Early number (ITIN) 13 , 37 itemized deduction (or vice Identity theft 2 , 21 withdrawal from deferred Individual taxpayers (See Single versa) 94 Illegal activities: interest account) taxpayers) Choosing to itemize 93 , 94 Reporting of 76 Employer retirement plan Form 1040 to be used 71 participants 80

134 Publication 17 (2025) Itemized deductions (Cont.)

Married filing separately 23, 94 Form 1099-R for surrender of Spouse covered by employer Native Americans (See Indians)

One spouse has itemized 92 policy for cash 69 plan 79, 80 Negligence penalties 20

Recovery 71 Premiums 103 Living apart 22 Net operating losses:

Standard deduction to be Proceeds 60 Nonresident alien spouse 13, 23 Refund of carryback 19

compared with 93 As income 69 Roth IRAs 88 New Jersey Nonoccupational

State tax, for 94 Public safety officers who died or Signatures when spouse unable Disability Benefit Fund 97

ITIN (See Individual taxpayer were killed in line of duty, tax to sign 15 New Jersey Unemployment

identification number (ITIN)) exclusion 70 Social security or railroad Compensation Fund 97

ITINs (See Individual taxpayer Surrender of policy for cash 69 retirement benefits, New York Nonoccupational

identification number (ITIN)) Withholding 40 taxability 62 Disability Benefit Fund 97



J employer-provided 50 Lifetime learning credit: Nominees 56, 60 Medical and dental expenses: Life insurance premiums Mass transit passes, 36 Nobel Prize 76



Judges, federal: Guardian of spouse, signing 20 Exclusion, limit of 54 Medicare taxes, not support 36 Notary fees 75 Qualified services defined 54 Member of household or Notes: as 22 relationship test 34 Losses 19 , 23 Discounted 48, 60 Injured spouse 15 (See also Gains and losses) Mentally incompetent persons 53 Received for services 48 Innocent spouse 22 (See also Disabilities, persons with) Capital 23 Nursing homes: Nonresident or dual-status alien Signing of return by Casualty 102 , 104 court-appointed Insurance for care in (See Long-spouse 23 Gambling (See Gambling representative 14 term care insurance contracts) Responsibility for 22 winnings and losses) Nutrition Program for the Mexico: Separate return after joint 23 Theft 102 , 104 Elderly 74 Resident of 27 , 33 Signing 15 , 22 Lost property 103 Military (See Armed forces) Social security and railroad Lotteries and raffles 75 Mineral royalties 72 O retirement benefits 66 (See also Gambling winnings and State and local income taxes, losses) Ministers (See Clergy) OASDI 73 deduction of 97 Miscellaneous deductions 101 Occupational taxes: Missing children: M Deduction of: Employer retirement plan Photographs of, included in IRS Taxes that are deductible coverage 80 MAGI (See Modified adjusted gross publications 3 (Table 11-1) 99 Jury duty pay 76 income (MAGI)) Mistakes (See Errors) Office rent, deductibility of 102 Married dependents, filing joint Modified adjusted gross income Offset against debts 9 , 15 return 26 , 30 (MAGI): K Oil, gas, and minerals: Married filing separately 23 IRAs, computation for: Future production sold 72 Kickbacks 76 Community property states 23 Effect on deduction if covered Royalties from 72 Kiddie tax (See Children, Credits, treatment of 23 by employer retirement subheading: Unearned income of) Schedule C or C-EZ 72 Deductions: plan (Table 9-1) 81 , 82 Kidnapped children: Sale of property interest 72 Changing method from or to Effect on deduction if not Qualifying child 29 itemized deductions 94 covered by employer Options 51 retirement plan Qualifying relative 33 Treatment of 23 Ordinary gain and loss (See Gains (Table 9-2) 81 and losses) Earned income credit 23 Worksheet 9-1 82 Original issue discount (OID) 60 L How to file 23 Roth IRAs, computation for 88 Other taxes 107 Itemized deductions 23 , 94 Labor unions 40 Phaseout (Table 9-3) 88 Outplacement services 48 One spouse has itemized so Dues and fees 77 Worksheet 9-2 88 other must as well Joint accounts Interviews 101 Due dates 11 76 Medical insurance (See Accident Loans 19 Estimated tax 41 55 insurance) (See also Debts) Individual taxpayer identification Joint return test 26 , 30 Medical insurance premiums 36 Lobbying expenses 103 number (ITIN) 13 Joint returns: Job search: Reimbursements, treatment Limits: Married filing separately 23 Nonemployee compensation 75 Deduction of expenses for 54 of Nonresident aliens 8 Miscellaneous deductions Accounting period Local assessments: Medical savings accounts Spouse 13 (MSAs) 49 , 76 22 Deductibility of 99 (See also Archer MSAs) Joint returns not available 23 After separate return 23 Local income taxes, itemized Separated 24 Medicare Advantage MSA 76 Deceased spouse 22 deductions 94 Medicare 48 , 52 Standard deduction 92 Dependents on 34 Local law violated 34 (See also Social security and Taxpayer identification Divorced taxpayers 22 Lockout benefits 77 Medicare taxes) number 37 Estimated tax 41 Lodging 35 Benefits 73 Waiver of alien status 52 Extension for citizens outside Long-term care insurance Medicare Advantage MSA Northern Mariana Islands: U.S. 12 contracts 54 (See Medical savings Income from 8 Filing status 22 Chronically ill individual 54 , 70 accounts (MSAs)) Not-for-profit activities 74 Fraud penalty



Late filing 73 Social security and railroad Overtime pay 39 Assistance payments 73 3 retirement benefits 63 Discounted mortgage loan 67 Penalties 11 , 20 State and local income taxes 96 Interest: P Late payment: Tenants by the entirety, allocation Refund of 70 Paper vs. electronic return (See E-Penalties on tax payments 20 of real estate taxes 98 MSAs (See Medical savings file) Law enforcement officers: Married taxpayers 22-24 accounts (MSAs)) Paperwork Reduction Act of (See also Joint returns) Life insurance proceeds when Multiple support agreement 36 1980 3 (See also Married filing separately) death in line of duty 70 Municipal bonds 60 Parental responsibility Age 65 or older spouse: Legal expenses 102 , 104 Mutual funds: Strike and lockout benefits 40 filed, but separate federal Mortgage: Overseas work (See Foreign employment) 77 returns 97 Relief 67 Unemployment compensation Overtime 76 Rollovers 23 Mortgages: payments from Sick pay withholding under union Money market certificates 56 (See also Tax refunds) Joint state and local income taxes agreements 92 Overpayment of tax 15



Liability insurance: Standard deduction (See Children) 93 Nonpublicly offered 102 Parents who never married 30 Blind spouse: Reimbursements from 74 Parents, divorced or Standard deduction 93 License fees: separated 29 N Deceased spouse 6 , 7 , 21 , 22 Deductibility of 100 Parking fees: (See also Surviving spouse) Nondeductibility of 103 Name change 13 , 44 Employer-provided fringe benefit: Dual-status alien spouse 23 Life insurance 49 , 70 National Housing Act: Exclusion from income 50 Estimated tax 41 (See also Accelerated death Mortgage assistance 73 Partners and partnerships 102 benefits) Filing status 6 , 7 , 22 National of the United States 28 Income 70 (See also Group-term life insurance) IRAs 79

Publication 17 (2025) 135

Pass-through entities 102 Decedent’s unrecovered Qualifying child 28 Relief fund contributions 104

Passive activity: investment in 14 Qualifying relative 33 Religious organizations 8, 51



Patents: Elective deferral limitation 51 Rental income and expenses: R Employer plans: Infringement damages Losses 23 Disability pensions 53 (See also Clergy)



Payroll deductions 73 Joint returns 66 Rollovers 84 Damages from 74 100 Lump-sum election 64 Required minimum Personal property: Payroll taxes 48 Married filing separately 23 , 63 distributions 83, 85 (See also Social security and Rental income from 71 Repayment of benefits 63 (See also Individual retirement Medicare taxes) Personal property taxes: Reporting of 63 arrangements (IRAs)) Peace Corps allowances 52 Deduction of 100 Taxability of 62 , 63 Rescue squad members: Penalties 42 , 45 Schedule A, C, E, or F (Form Withholding 40 Life insurance proceeds when 1040) 100 Accuracy-related 20 death in line of duty 70 Not tax deductible 100 Backup withholding 40 Taxes (See Personal property Reservists: Withholding for 63 taxes) Civil penalties 19 IRAs 80 Railroad Unemployment Personal representatives Criminal 21 Insurance Act 54 Repayments 79 (See Fiduciaries) Deductibility 103 Real estate: Residency: Persons with disabilities Defenses 20 Canceled business debt, Home outside U.S. (See Citizens (See Disabilities, persons with) treatment of 69 outside U.S.) Estimated tax (See this heading: Place for filing 16 Underpayment of estimated Division of real estate taxes 97 Residency test 28 Political campaign expenses 103 , tax) Form 1099-S to report sale Resident aliens: 104 Failure to include social security proceeds 98 Estimated tax 41 Political contributions number 14 , 20 Itemized charges for services not IRA distributions, withholding (See Campaign contributions) Failure to pay tax 20 deductible 99 from 86 Power of attorney 14 , 23 Form 8606 not filed for Real estate-related items not Social security number (SSN) 13 Premature distributions (See Early nondeductible IRA deductible 99 withdrawal from deferred interest Spouse treated as 24 contributions 78 , 82 Transfer taxes 100 account) Retired Senior Volunteer Fraud 20 , 21 Real estate taxes: Program 53 Prepaid: Frivolous tax submission 20 Assessments (See Local Insurance 57 Retirees: Interest on 16 assessments) Armed Forces: Preparers of tax returns 15 IRAs 86 Cooperative housing 97 Presidential Election Campaign Taxable income 52 Early distributions Payment of tax 80 Employer retirement plans Personal property rental 71 3 , 10 , 15 , 16 , 19 , 43 different from 80 Inherited pensions 76 Repayments 71 By credit or debit card 11 Equivalent tier 1 (social security Military (See Armed Forces) Amount previously included in Delivery services 11 equivalent benefit income 105 Unrecovered investment in 105 Estimated tax 16 (SSEB)) 62 , 76 Withholding 14 , 40 Railroad retirement benefits 63 Installment agreements Estimated tax 63 Social security benefits 63 , 71 Per capita taxes: (See Installment agreements) Form RRB-1042S for nonresident Deductibility of 100 Unemployment Late payment penalties 20 aliens 62 compensation 72 , 73 Personal exemption 37 Payments 107 , 108 Form RRB-1099 62 Reporting: Personal injury suits: Disaster relief Payment of estimated tax 80 Railroad retirement Deductibility (Table 11-1) 99 43 benefits 62 - 66 , 76 Rollover to IRA 84 , 90 Losses from rental real estate By check or money order 43 Deductions related to 66 Situations in which no activities 23 Credit an overpayment 43 coverage Royalties Raffles 75 taxes 100 72 Benefits from previous employer's plan 74 Increase due to higher real estate



Pennsylvania Unemployment Late filing Excess contributions 87 deduction of 97 Fund 14 Retirement planning services 50 86 Deduction of: Price reduced after purchase 69 Retirement plans 23 , 37 , 62 Form 8606 not filed for List of deductible taxes Principal residence (See Home) (See also Railroad retirement nondeductible (Table 11-1) 99 benefits) Privacy Act and Paperwork contributions 78 , 82 Schedule A, C, E, or F (Form (See also Roth IRAs) Reduction information 3 Overstatement of 1040) 100 Clergy 51 Private delivery services 11 nondeductible Refund, treatment of 99 Contributions 51 contributions 82 Prizes and awards 47 , 76 Rebates (See Refunds) (See also Bonuses) Credit for (See Retirement Required distributions, failure Recharacterization: savings contribution credit) to take 85 Exclusion from income 47 IRA contributions 84 Taxation of 51 Pulitzer, Nobel, and similar 11 , 20 Recordkeeping: Decedent’s unrecovered prizes 76 Exception 20 investment in 14 Scholarship prizes 77 Gambling 105 Late payment 20 Disability pensions 53 Professional license fees 104 Recordkeeping requirements 16 Negligence 20 Elective deferral limitation 51 Professional Reputation 104 Basic records 17 Reportable transaction Employer plans: understatements 20 Profit-sharing plans: Copies of returns 17 Benefits from previous Roth IRAs: Withholding 14 , 40 Electronic records 17 employer's plan 80 Conversion contributions Property: Gambling 75 Rollover to IRA 84 , 90 withdrawn in 5-year Found 75 Period of retention 17 Situations in which no period 91 Stolen 77 Proof of payments 17 coverage 80 Excess contributions 90 Public assistance benefits 73 Why keep records 17 Inherited pensions 76 Substantial understatement of Public debt: Recovery of amounts previously IRAs (See Individual retirement income tax 20 deducted 70 Gifts to reduce 16 arrangements (IRAs)) Tax evasion 21 Itemized deductions 71 Public transportation passes, Military (See Armed Forces) Underpayment of estimated employer-provided 50 Mortgage interest refund 70 Withholding 14 , 40 tax 37 , 42 , 45 Publications (See Tax help) Over multiple years 71 Retirement savings contribution Willful failure to file 21 Puerto Rico: Tax refunds 70 credit: Withholding 39 , 40 Residents of 8 Refunds 107 Adjusted gross income limit 23 Pulitzer Prize 76 State tax 70 Returns, tax (See Tax returns) Compensation Fund 97 Punitive damages: Taxes (See Tax refunds) Rewards 77 Pensions 37 , 62 As income 74 Rehabilitative program (See also Railroad retirement Rhode Island Temporary Disability payments 52 Benefit Fund 97 benefits) Reimbursement 70 Clergy 51 Q Rollovers 83 (See also Recovery of amounts Definition of 83 Contributions: previously deducted) Qualified opportunity fund 76 Retirement savings Excess due to incorrect rollover Qualified plans 83 Employee business expenses 47 contribution credit 23 information 87 (See also Rollovers) Relationship test 28 , 34 Taxation of 51 From 403 plan to IRA 83 Qualified tuition programs 76 Relative, qualifying 33

136 Publication 17 (2025) Rollovers (Cont.)

From employer's plan to IRA 83, Bonds used for education 59 Mentally incompetent 14 Refunds, treatment of 96, 97

84 Certificate 56, 60 Parent for child 15 State or local taxes:

From IRA to IRA 83 Schedule 16, 47, 51, 54 Physically disabled 14 Refunds 70



Married filing separately 23 70 S corporation income Stock bonus plans 40 IRAs as 79 Stock options 51 Partial rollovers 83 K-1, Form 1041 55 Single taxpayers 22 Stockholders 19 Reporting: Schedule A (Form 1040): Filing requirements 7 (See also Securities) From employer's plan to Itemized deductions 94 Filing status 7 , 21 , 22 Debts 67 IRA 84 Schedules A–F, R, SE (Form 1040) Gross income filing requirements Stockholders' meeting (See Form 1040) IRA to IRA 83 (Table 1-1) 6 expenses 104 Taxability 83 , 88 Scholarships 30 , 34 , 36 Social security and Medicare Stocks 19 Scholarships and fellowships: Time limits (60-day rule) 83 taxes: (See also Securities) Earned income including Treatment of 83 93 Support, not included in 36 Stolen funds: Exclusion from gross income From section 457 plan to IRA 83 SIMPLE plans: Claim for refunds 18 1040) From SIMPLE IRA to Roth Rollover to Roth IRA 91 Stillborn child 28 IRA 91 K-1: Simplified employee pensions Stock appreciation rights 48 Inherited IRAs 83 Partnership income 70 (SEPs): From Roth IRA to Roth IRA 91 (See also Form 1040 or 1040-SR) Silver (See Gold and silver) Claim for refund 15 Form 1040, A-F, R, SE (See Form From IRA to Roth IRA 90 (See also Form 1040) Signing your return 9 Statute of limitations:

Waiting period between 77 83 Social security benefits 35, 62, 66 Reporting of 77



Rounding off dollars Conversion To traditional IRA for same 90 Reporting of 63 programs) U.S. citizens employed by 8 Substitute forms 12 Taxability of 62 , 63 Gross income 7 year 89 Withholding 40 Sunday, deadline falling on 42 IRAs 78 90 Supplemental wages 39 Withholding for 63 Ministers 8 Definition of 88 Not deductible 100 Support test: Nonemployee compensation 75 Distributions: Qualifying child 30 Social security number (SSN) 13 Self-employment tax: Qualified distributions 91 Child's: Qualifying relative 34 Deduction of 100 Effect of modified AGI on Surviving spouse: Number to be obtained at contributions (Table 9-3) 88 List of deductible taxes birth 37 Filing status 21 (Table 11-1) 99 Establishing account 88 Child’s 2 With dependent child 25 Seminars: Excess contributions 90 Correspondence with IRS, include Gross income filing requirements Investment-related 103 IRA transfer to 83 , 84 SSN 14 (Table 1–1) 6 Senior Companion Program 53 Modified adjusted gross income Dependents 2 , 13 Life insurance proceeds paid Separate returns (See Married filing (MAGI) 88 Exception 13 to 69 separately) Computation (Worksheet Single filing status 22 Failure to include penalty 14 9-2) 88 Separated parents 29 , 33 Form SS-5 to request number 13 Tax (See Estate tax) Phaseout (Table 9-3) 88 Separated taxpayers 22 Surviving Spouse (See Surviving Nonresident alien spouse 13 Penalties: Filing status 23 , 24 spouse) Resident aliens 13 Conversion contributions IRAs 80 Spouse 7 , 13 , 15 , 21-23 , 69 withdrawn in 5-year Nonresident alien spouse 24 (See also Married taxpayers) T period 91 SEPs (See Simplified employee Spouse's death 93 Excess contributions 90 pensions (SEPs)) Tables and figures: SSN (See Social security number Recharacterizations 84 Series EE and E savings Estimated tax, who must make (SSN)) Spousal contributions 88 bonds 57 payments (Figure 4-A) 42 Stamp taxes: Taxability 91 Series HH and H savings Filing requirements: bonds 57 Real estate transactions and 100 Withdrawals 91 Dependents (Table 1-2) 7 Series I savings bonds 57 Stamps (See Collectibles) Excess contributions 90 Gross income levels Service charges 102 Standard deduction 92 , 94 (Table 1-1) 6 Not taxable 91 Service Corps of Retired State: Head of household, qualifying 14 Executives (SCORE) 53 Obligations, interest on 60 person (Table 2-1) 24 Royalties 72 Severance pay Roth IRAs 88-91 Teaching or research Deductions related to 66 Stolen property 77 (See also Rollovers) fellowships 77 Employer retirement plans Strike benefits 77 Section 457 deferred Age: different from 80 Student loans: compensation plans: Distributions after age Estimated tax 63 Cancellation of debt 67 Rollovers: 59 1/2 91 Foreign employer 52 Interest deduction: No limit for contributions 88 To IRAs 84 , 90 Form SSA-1042S for nonresident Compensation, defined No required distribution Securities: Married filing separately 23 aliens 62 Students: age 91 Claim for refund 19 Form SSA-1099 62 Defined 28 88 Options 51 IRAs for recipients of benefits 80 Exemption from withholding 39 Contribution limits 89 Stock appreciation rights 48 Joint returns 66 Foreign 28 Age 50 or older, 89 Self-employed persons 100 Lump-sum election 64 Loans (See Student loans) Under age 50, 89 (See also Self-employment tax) Married filing separately 23 , 63 Scholarships (See Scholarships Contributions 88 Corporate directors as 75 Paid by employer 48 and fellowships) No deduction for 88 Definition 8 Repayment of benefits 63 , 71 Tuition programs, qualified Roth IRA only 89 Foreign government or Repayments 102 (See Qualified tuition international organizations, Time to make

48 State or local governments: Individual retirement

S Accrued leave payment 48 Employees: arrangements (IRAs):



Sale of home (Table 11-1) 99 77 Modified AGI, effect on agreements 39 Schedule A (Form 1040) 100 Division of real estate taxes 97 deduction if not covered by FECA payments 54 Exception to deduction 96 retirement plan at work Sale of property: Income 48 Federal changes, effect on 19 (Table 9-2) 81 Personal items 77 Railroad Unemployment Form W-2 to show withheld Roth IRAs, effect of modified Sales and exchanges: Insurance Act 54 taxes 96 AGI on contributions Bonds 60 Withholding 39 Joint state and local returns but (Table 9-3) 88 Saturday, deadline falling on 42 Signatures 14 federal returns filed Roth IRAs, modified AGI Savings: separately 97 (Worksheet 9-2) 88 Agent, use of 14 Bonds Safe deposit box Shareholders 94 Modified AGI, effect on 70 Change in annual accounting deduction if covered by period 92 Deduction of 96 102 retirement plan at work Sick pay: List of deductible taxes Salaries (See Wages and salaries) (Table 9 -1) 81 Collective bargaining S corporations compensation 73 (Worksheet 9-1) 82 102 Short tax year: State or local income taxes Outplacement services 48 Unemployment Figuring modified AGI

57, 61 Married filing separately 96 Joint returns 22

Publication 17 (2025) 137 Tables and figures (Cont.)

Roth IRA and modified adjusted Tax Returns: Trade Act of 1974: Private fund, from 73



Tax returns: 95 Tax year 10, 12 Traditional IRAs (See Individual Supplemental benefits 73 retirement arrangements (IRAs)) (See also Accounting periods) Voluntary benefit fund Due dates (Table 1-5) 11 Transfer taxes: Tax-exempt: contributions 104 Taxes that are deductible Standard deduction tables phaseout (Table 9-3) 88 Tax table 111-122 under 72 Reporting on Form 1040 73 gross income (MAGI) Transcript of 17 Trade readjustment allowances Repayment of benefits 72, 73



Tax refunds: (Schedule Y-2) deductible 100 23 Transit pass 50 Special statute of limitations. 54 Foreign taxes 96 Treasury bills, notes, and Veterans' benefits: Income tax, deduction of 97 Agreement with IRS extending bonds 59 Educational assistance 77 Gift taxes 100 assessment period, claim Treasury Inspector General: Viatical settlements 70 based on 19 How to figure Telephone number to report VISTA volunteers 53 Bad debts 19 Income taxes, deduction of 96 anonymously fraud or Volunteer firefighters: Business tax credit Indian tribal government taxes, misconduct of IRS IRAs 80 carrybacks 19 deduction of 96 employee 3 Volunteer work 52 Inheritance tax 100 Treasury notes 57 Claim for 18 , 19 Tax counseling (Volunteer Income Limitations period 18 Kiddie tax (See Children, Trust beneficiaries: Tax Assistance program) 10 , subheading: Unearned Losses of trust 75 Litigation 19 53 income of) Direct deposit 15 Receiving income from trust 75 , Vouchers for payment of tax 43 Not deductible 100 76 Erroneous refunds 18 Personal property taxes: Trustees: Federal income tax refunds 70 Deduction of 100 W Administrative fees 102 Financially disabled 19 Real estate taxes (See Real IRA 102 W-2 form (See Form W-2) Foreign tax paid or accrued 19 estate taxes) IRAs: Wages and salaries 12 , 47-54 General rules 9 Taxes, not support 36 Fees 79 (See also Form W-2) Inquiries 10 Taxpayer identification number Transfer from trustee to Accident and health Interest on 18 , 19 , 57 (TIN): trustee 83 , 90 insurance 48 Late filed returns 3 Adoption (ATIN) 13 Trusts 75 Accrued leave payment 48 Limits 19 Individual (ITIN) 13 , 37 (See also Trust beneficiaries) Adoption, employer Exceptions 19 Social security number Grantor trusts 75 assistance 49 More or less than expected 15 (See Social security number Income 75 Advance commissions 47 Net operating loss carryback 19 (SSN)) TTY/TDD information 127 Allowances and Telephones 104 Offset: reimbursements 39 , 47 Tuition: Against debts 9 , 15 Fraud or misconduct of IRS Archer MSA contributions 49 Qualified programs employee, number for Against next year’s tax 15 (See Qualified tuition Awards and prizes 47 reporting anonymously 3 Offset against next year’s tax Tax figured by IRS 21 Employer-provided commuter Usurious interest 57 Alternative minimum 107 vehicle 50 107 Utilities: Business taxes, deduction of 96 Tax help 3 , 10 , 127 Expenses paid for others 104 Energy conservation Deduction of 96 Fringe benefits 50 subsidies 74 , 77 Tax Counseling for the Elderly 10 Schedules to use 100 Volunteer counseling (Volunteer Job search expenses 76 Rebates 77 Types of taxes deductible Income Tax Assistance Parking fees: (Table 11-1) 99 program) 10 , 53 Employer-provided fringe Estate (See Estate tax) V Tax preference items 107 benefit 50 Excise (See Excise taxes) Veterans benefits 52 Tax rates 22 School children, transporting Federal income taxes, not of 77 Retroactive determination 53 Married filing separately Tax Counseling for the Elderly 123 Interest 60 Travel and transportation (See also Labor unions) 10 expenses: Unmarried persons (See Single Tax-exempt income 35 Tax credits (See Credits) Commuting expenses: taxpayers) Taxes 37 , 96-100 , 106 Tax evasion Tax computation worksheet (Table 11-1) 99 Transit passes 50 Income 104 Unions 40, 73, 77 Bonds and other obligations 60 Real estate transactions and 100 Withholding 40, 73



Tax returns Past-due 43 programs) Babysitting 47 Temporary absences 28 , 34 10 , 18 Tuition programs, qualified Back pay awards 47 Tenants: Real estate taxes, treatment (See Qualified tuition programs) Bonuses 47 By the entirety 56 of 99 Tuition, benefits under GI Bill 36 Child care providers 47 In common 56 Reduced 19 Children’s earnings 8 Tenants by the entirety: State and local income tax U Clergy 51 Real estate taxes, allocation when refunds 96 , 97 De minimis benefits 49 filing separately 98 U.S. citizen or resident 27 State liability, effect on 19 Elective deferrals 51 Terminal illness: U.S. national 28 Under $1 15 Employee achievement award 47 Accelerated payment of life U.S. obligations, interest 57 Withholding 8 insurance proceeds Employee compensation 47 U.S. savings bonds: Worthless securities 19 (See Accelerated death Farmworkers 37 Education, used for 23 11 , 14 , 22 benefits) Foreign employer 52 (See also Due dates) Interest on 76 Viatical settlements 70 Form W-2 (See Form W-2) (See also Joint Returns) U.S. territories: Terrorist attacks: (See also Signatures) Fringe benefits 48 Deduction of income tax paid Disability pensions for federal Aliens 8 Garnished 13 to 97 employees 54 Amended 18 , 94 Government cost-of-living Income from 8 Theft losses 102 , 104 (See also Form 1040-X) allowances 48 U.S. Treasury bills, notes, and Third parties: Attachments to returns 14 Household workers 37 bonds 59 Designee for IRS to discuss return Child 15 Long-term care coverage 48 U.S. Virgin Islands: with 14 Copies of 17 Military retirees 37 , 52 Income from 8 Income from taxpayer’s property Dating of 14 Military service 52 Underpayment penalties 37 , 42 , paid to 13 Filing of 6 45 Miscellaneous compensation 47 Tiebreaker rules 30 (See also Filing requirements) IRS computation 45 Note for services 48 Tip income: Forms to use 8 Unearned income: Outplacement services 48 Allocated tips 39 Free preparation help 10 Children 55 Religious orders 52 Withholding 39 How to file 12 Unearned income of child Restricted property 51 Underwithholding 39 Paid preparer 15 (See Children, subheading: Dividends on restricted Tips 77 Unearned income of) Payment with 15 stock 51 Total support 35 Unemployment compensation 72 Private delivery services 11 Retirement plan contributions by Tour guides: Credit card insurance paying 74 employer 51 Third party designee 14 Free tour for organizing tour 75 Mandatory contributions to state Severance pay 48 Who must file 7 , 8 funds, deduction of 97 Sick pay 48 , 54

138 Publication 17 (2025) Wages and salaries (Cont.)

Social security and Medicare Checking amount of 38 Highest rate, employer must Workers' compensation:

taxes paid by employer 48 Claim for refund 8 withhold at if no W-4 39 Mandatory contributions to state

Stock appreciation rights 48 Commodity credit loans 40 Incorrect form 44 funds, deduction of 97

Stock options 51 Credit for 37, 44 IRA distributions 86 Workers’ compensation 54

Supplemental 39 Cumulative wage method 38 New job 38 Return to work 54

Volunteer work 52 Definition 37 Penalties 37, 39, 40 Worksheets:

Withholding (See Withholding) Determining amount to Pensions and annuities 14, 40 Head of household status and

War zone (See Combat zone) cost of keeping up home 24 withhold 38 Railroad retirement benefits 40 ,

Washington State Supplemental Disaster Assistance Act of 1988 63 Individual retirement



Welfare benefits 82 35 , 73 Exemption from 39 Separate returns 44 Roth IRA modified adjusted gross What’s new 1 Federal income taxes, not Sick pay 39 income (MAGI), computation Where to file 16 deductible 100 Social security benefits Fund modified AGI computation 97 Employers, rules for 38 Salaries and wages 37 (Worksheet 9-1) Workmen's Compensation payments 40 Repaying withheld tax 39 arrangements (IRAs),

Winter energy payments 74 Form W-4: State and local income taxes, Social security or railroad Withholding 40, 63 (Worksheet 9-2) 88

12, 37 Provided by employer 38 deduction for 96 retirement benefits, to figure

(See also Form W-2) Fringe benefits 39 Supplemental wages 39 taxability 63, 64



Changing amount withheld payments 40 General rules 37 Unemployment Wristwatch 104 Agricultural Act of 1949 Gambling winnings 40, 44 Tips (See Tip income) Support test 31

For 2027 38 compensation 40, 73 Write-offs (See Cancellation of 38 debt)



Publication 17 (2025) 139 Where To File





Mail your return to the address shown below that applies to you. If you want to use a private delivery service, see Private


delivery services in chapter 1.



TIP

Envelopes without enough postage will be returned to you by the post office. Your envelope may need

additional postage if it contains more than five pages or is oversized (for example, it is over 1/4 inch thick). Also, include your complete return address.

THEN send your return to the address OR send your return to the address

below if you are requesting a refund or below if you ARE enclosing a

IF you live in... are NOT enclosing a payment... payment (check or money order)...

Alabama, Florida, Georgia, Louisiana, Mississippi, North Department of the Treasury Internal Revenue Service

Carolina, South Carolina, Tennessee, Texas Internal Revenue Service P.O. Box 1214

Austin, TX 73301-0002 Charlotte, NC 28201-1214

Alaska, California, Colorado, Hawaii, Idaho, Kansas, Department of the Treasury Internal Revenue Service

Michigan, Montana, Nebraska, Nevada, North Dakota, Internal Revenue Service P.O. Box 931000

Ohio, Oregon, South Dakota, Utah, Washington, Wyoming Ogden, UT 84201-0002 Louisville, KY 40293-1000

Arizona, Arkansas, New Mexico, Oklahoma Department of the Treasury Internal Revenue Service

Internal Revenue Service P.O. Box 931000 Austin, TX 73301-0002 Louisville, KY 40293-1000

Connecticut, Delaware, District of Columbia, Illinois,

Indiana, Iowa, Kentucky, Maine, Maryland, Department of the Treasury Internal Revenue Service

Massachusetts, Minnesota, Missouri, New Hampshire, Internal Revenue Service P.O. Box 931000

New Jersey, New York, Pennsylvania, Rhode Island, Kansas City, MO 64999-0002 Louisville, KY 40293-1000

Vermont, Virginia, West Virginia, Wisconsin

A foreign country, U.S. territory,* or use an APO or FPO Department of the Treasury Internal Revenue Service

address, or file Form 2555 or 4563, or are a dual-status Internal Revenue Service P.O. Box 1303

alien Austin, TX 73301-0215 Charlotte, NC 28201-1303

* If you live in American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands, see Pub. 570.



140 Publication 17 (2025)





