Page 38 - Individual Forms & Instructions Guide

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Accrued leave payment. If you retire • Gains and losses from transactions If you made a section 962 elec-
on disability, any lump-sum payment for which you received a Form 1099-B ! tion and are taking a deduction
you receive for accured annual leave is a (or substitute statement) that shows ba- CAUTION under section 250 with respect
salary payment. The payment is not a sis was reported to the IRS, the QOF to any income inclusions under section
disability payment. Include it in your in- box in box 3 isn’t checked, and you 951 or 951A, don't report the deduction
come in the tax year you receive it. don’t need to make any adjustments in on line 12. Instead, report the tax with
Line 6c column (g) of Form 8949 or enter any respect to a section 962 election on
codes in column (f) of Form 8949.
line 16 and include in the statement re-
Check the box on line 6c if you elect to If Exception 1 applies, enter your to- quired by line 16 how you figured the
use the lump-sum election method for tal capital gain distributions (from section 250 deduction.
your benefits. If any of your benefits are box 2a of Form(s) 1099-DIV) on line 7
taxable for 2022 and they include a and check the box on that line. If you re- Standard Deduction
lump-sum benefit payment that was for ceived capital gain distributions as a
an earlier year, you may be able to re- nominee (that is, they were paid to you Most Form 1040 filers can find their
duce the taxable amount with the but actually belong to someone else), re- standard deduction by looking at the
lump-sum election. See Lump-Sum Elec- port on line 7 only the amount that be- amounts listed to the left of line 12.
tion in Pub. 915 for details. longs to you. Include a statement show- Most Form 1040-SR filers can find their
ing the full amount you received and the standard deduction by using the chart on
Line 7 amount you received as a nominee. See the last page of Form 1040-SR.
the Schedule B instructions for filing re- Exception 1—Dependent. If you
Capital Gain or (Loss) quirements for Forms 1099-DIV and checked the “Someone can claim you as
If you sold a capital asset, such as a 1096. a dependent” box, or if you’re filing
stock or bond, you must complete and If you don’t have to file Sched- jointly and you checked the “Someone
attach Form 8949 and Schedule D. TIP ule D, use the Qualified Divi- can claim your spouse as a dependent”
box, use the Standard Deduction Work-
Exception 1. You don’t have to file dends and Capital Gain Tax sheet for Dependents to figure your
Form 8949 or Schedule D if you aren’t Worksheet in the line 16 instructions to standard deduction.
deferring any capital gain by investing figure your tax.
in a qualified opportunity fund and both Someone claims you or your
of the following apply. TIP spouse as a dependent if they
list your or your spouse's name
1. You have no capital losses, and Total Income and and SSN in the Dependents section of
your only capital gains are capital gain
distributions from Form(s) 1099-DIV, Adjusted Gross their return.
box 2a (or substitute statements); and Income Exception 2—Born before January 2,
2. None of the Form(s) 1099-DIV 1958, or blind. If you checked any of
(or substitute statements) have an Line 10 the following boxes, figure your stand-
amount in box 2b (unrecaptured section ard deduction using the Standard Deduc-
1250 gain), box 2c (section 1202 gain), Enter any adjustments to income from tion Chart for People Who Were Born
or box 2d (collectibles (28%) gain). Schedule 1, line 26, on line 10. Before January 2, 1958, or Were Blind
if you are filing Form 1040 or by using
Exception 2. You must file Schedule D the chart on the last page of Form
but generally don’t have to file Form Tax and Credits 1040-SR.
8949 if Exception 1 doesn't apply, you • You were born before January 2,
aren’t deferring any capital gain by in- 1958.
vesting in a qualified opportunity fund Line 12 • You are blind.
or terminating deferral from an invest- • Spouse was born before January 2,
ment in a qualified opportunity fund, Itemized Deductions or 1958.
and your only capital gains and losses Standard Deduction • Spouse is blind.
are: Exception 3—Separate return or du-
• Capital gain distributions; In most cases, your federal income tax al-status alien. If you checked the box
• A capital loss carryover from will be less if you take the larger of your labeled “Spouse itemizes on separate re-
2021; itemized deductions or standard deduc- turn or you were dual-status alien” on
• A gain from Form 2439 or 6252 or tion. the Spouse standard deduction line, your
Part I of Form 4797; standard deduction is zero, even if you
• A gain or loss from Form 4684, Itemized Deductions were born before January 2, 1958, or
6781, or 8824; To figure your itemized deductions, fill were blind.
• A gain or loss from a partnership, in Schedule A.
S corporation, estate, or trust; or Exception 4—Increased standard de-
duction for net qualified disaster loss.

-31- Need more information or forms? Visit IRS.gov.