Page 7 - 2020 Publication 17

Page 5 of 138
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Reminders Fileid: … ations/P17/2020/A/XML/Cycle03/source 14:38 - 19-Jan-2021
Listed below are important Taxpayer identification num- Faster ways to file your return. Disclosure, Privacy Act, and pa-
reminders and other items that bers. You must provide the tax- The IRS offers fast, accurate ways perwork reduction information.
may help you file your 2020 tax payer identification number for to file your tax return information The IRS Restructuring and Reform
return. Many of these items are each person for whom you claim without filing a paper tax return. Act of 1998, the Privacy Act of
explained in more detail later in this certain tax benefits. This applies You can use IRS e-file (electronic 1974, and the Paperwork Reduc-
publication. even if the person was born in filing). See chapter 1. tion Act of 1980 require that when
Special rules for eligible gains 2020. Generally, this number is the Free electronic filing. You may we ask you for information, we
invested in Qualified Opportu- person's SSN. See chapter 1. be able to file your 2020 taxes on- must first tell you what our legal
right is to ask for the information,
nity Funds. If you have an eligible Foreign-source income. If you line for free. See chapter 1.
gain, you can invest that gain into a are a U.S. citizen with income from Change of address. If you why we are asking for it, how it will
be used, what could happen if we
Qualified Opportunity Fund (QOF) sources outside the United States
and elect to defer part or all of the (foreign income), you must report change your address, notify the do not receive it, and whether your
response is voluntary, required to
IRS. See chapter 1.
gain that is otherwise includible in all such income on your tax return
income. The gain is deferred until unless it is exempt by law or a tax Refund on a late-filed return. If obtain a benefit, or mandatory un-
der the law. A complete statement
the date you sell or exchange the treaty. This is true whether you live you were due a refund but you did
investment or December 31, 2026, inside or outside the United States not file a return, you must generally on this subject can be found in
your tax form instructions.
whichever is earlier. You may also and whether or not you receive a file your return within 3 years from
be able to permanently exclude Form W-2 or Form 1099 from the the date the return was due (in- Preparer e-file mandate. Most
gain from the sale or exchange of foreign payer. This applies to cluding extensions) to get that re- paid preparers must e-file returns
an investment in a QOF if the in- earned income (such as wages fund. See chapter 1. they prepare and file. Your pre-
vestment is held for at least 10 and tips) as well as unearned in- parer may make you aware of this
years. For information about what come (such as interest, dividends, Frivolous tax returns. The IRS requirement and the options avail-
has published a list of positions
types of gains entitle you to elect capital gains, pensions, rents, and able to you.
these special rules, see the In- royalties). that are identified as frivolous. The
penalty for filing a frivolous tax re-
structions for Schedule D (Form If you live outside the United Treasury Inspector General for
1040). For information on how to States, you may be able to exclude turn is $5,000. See chapter 1. Tax Administration. If you want
elect to use these special rules, part or all of your foreign earned in- Filing erroneous claim for re- to confidentially report misconduct,
see the Instructions for Form 8949. come. For details, see Pub. 54, fund or credit. You may have to waste, fraud, or abuse by an IRS
can
you
employee,
call
Enter your social security num- Tax Guide for U.S. Citizens and pay a penalty if you file an errone- 800-366-4484 (call 800-877-8339
ous claim for refund or credit. See
ber (SSN). Enter your SSN in the Resident Aliens Abroad. chapter 1. if you are deaf, hard of hearing, or
space provided on your tax form. If Foreign financial assets. If you have a speech disability, and are
you filed a joint return for 2019 and had foreign financial assets in Access your online account. using TTY/TDD equipment). You
are filing a joint return for 2020 with 2020, you may have to file Form You must authenticate your iden- can remain anonymous.
the same spouse, enter your 8938 with your return. See Form tity. To securely log into your fed-
names and SSNs in the same or- 8938 and its instructions or visit eral tax account, go to IRS.gov/ Photographs of missing chil-
der as on your 2019 return. See IRS.gov/Form8938 for details. Account. View the amount you dren. The IRS is a proud partner
chapter 1. Automatic 6-month extension to owe, review 24 months of payment with the National Center for
Missing & Exploited Children®
Secure your tax records from file tax return. You can get an au- history, access online payment op- (NCMEC). Photographs of missing
tions, and create or modify an on-
identity theft. Identity theft occurs tomatic 6-month extension of time line payment agreement. You can children selected by the Center
when someone uses your personal to file your tax return. See chap- also access your tax records on- may appear in this publication on
information, such as your name, ter 1. line. pages that would otherwise be
SSN, or other identifying informa- Payment of taxes. You can pay blank. You can help bring these
tion, without your permission, to your taxes by making electronic Health care coverage. If you children home by looking at the
commit fraud or other crimes. An payments online; from a mobile de- need health care coverage, go to photographs and calling
identity thief may use your SSN to vice using the IRS2Go app; or in HealthCare.gov to learn about 1-800-THE-LOST (800-843-5678)
get a job or may file a tax return us- cash, or by check or money order. health insurance options for you if you recognize a child.
ing your SSN to receive a refund. Paying electronically is quick, and your family, how to buy health
For more information about identity easy, and faster than mailing in a insurance, and how you might
theft and how to reduce your risk check or money order. See chap- qualify to get financial assistance
from it, see chapter 1. ter 1. to buy health insurance.
Introduction
This publication covers the general chapters, most of which generally 1. Who must file a return, Throughout this publication are
rules for filing a federal income tax discuss one line of the form or one 2. When the return is due, examples showing how the tax law
return. It supplements the informa- line of one of the three schedules. applies in typical situations. Also
tion contained in your tax form in- The introduction at the beginning 3. How to e-file your return, and throughout this publication are
structions. It explains the tax law to of each part lists the schedule(s) 4. Other general information. flowcharts and tables that present
make sure you pay only the tax you discussed in that part. tax information in an easy-to-un-
owe and no more. The table of contents inside the It will help you identify which filing derstand manner.
How this publication is ar- front cover, the introduction to status you qualify for, whether you Many of the subjects discussed
ranged. Pub. 17 closely follows each part, and the index in the can claim any dependents, and in this publication are discussed in
Form 1040, U.S. Individual Income back of the publication are useful whether the income you receive is greater detail in other IRS publica-
Tax Return, and Form 1040-SR, tools to help you find the informa- taxable. The publication goes on to tions. References to those other
U.S. Tax Return for Seniors, and tion you need. explain the standard deduction, the publications are provided for your
their three Schedules 1 through 3. What is in this publication. This kinds of expenses you may be able information.
Pub. 17 is divided into four parts. publication begins with the rules for to deduct, and the various kinds of
Each part is further divided into filing a tax return. It explains: credits you may be able to take to Icons. Small graphic symbols,
reduce your tax. or icons, are used to draw your
Publication 17 (2020) Page 3