8858 Information Return of U.S. Persons With Respect to Forei

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULES A&B (FORM 1040), PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8") x 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Date

SCHEDULES A&B

©

(See
page A-2.)

Revised proofs
requested

OMB No. 1545-0074

2006

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Attach to Form 1040.

Name(s) shown on Form 1040

1
2
3
4
5
6
7
8

©

Attachment
Sequence No.

See Instructions for Schedules A&B (Form 1040).

07

Your social security number

Caution. Do not include expenses reimbursed or paid by others.
1
Medical and dental expenses (see page A-2)
2
Enter amount from Form 1040, line 38
3
Multiply line 2 by 7.5% (.075)
Subtract line 3 from line 1. If line 3 is more than line 1, enter -05
State and local income taxes
6
Real estate taxes (see page A-5)
7
Personal property taxes
Other taxes. List type and amount

Signature

O.K. to print

(Schedule B is on back)

Department of the Treasury
Internal Revenue Service
(99)

Taxes You
Paid

Date

Schedule A—Itemized Deductions

(Form 1040)

Medical
and
Dental
Expenses

Action

4

©

8

9

Interest
You Paid

Home mortgage interest and points reported to you on Form 1098
Home mortgage interest not reported to you on Form 1098. If paid
to the person from whom you bought the home, see page A-6
and show that person’s name, identifying no., and address ©

12

Points not reported to you on Form 1098. See page A-6
for special rules
Investment interest. Attach Form 4952 if required. (See
page A-6.)
Add lines 10 through 13

10

11

13
14

Gifts to
Charity

15

If you made a
gift and got a
benefit for it,
see page A-7.

16
17
18

Casualty and
Theft Losses 19
Job Expenses 20
and Certain
Miscellaneous
Deductions
21
(See
page A-8.)

9

10
11

(See
page A-5.)
Note.
Personal
interest is
not
deductible.

Add lines 5 through 8

22

23
24
25
26

Gifts by cash or check. If you made any gift of $250 or
more, see page A-7
Other than by cash or check. If any gift of $250 or more,
see page A-7. You must attach Form 8283 if over $500
Carryover from prior year
Add lines 15 through 17

12
13
14
15
16
17
18

Casualty or theft loss(es). Attach Form 4684. (See page A-8.)
Unreimbursed employee expenses—job travel, union
dues, job education, etc. Attach Form 2106 or 2106-EZ
if required. (See page A-8.) ©
Tax preparation fees
Other expenses—investment, safe deposit box, etc. List
type and amount ©

19

20
21

22
23
Add lines 20 through 22
Enter amount from Form 1040, line 38 24
25
Multiply line 24 by 2% (.02)
Subtract line 25 from line 23. If line 25 is more than line 23, enter -0-

26

Other
27
Miscellaneous
Deductions

Other—from list on page A-9. List type and amount

28
Total
Itemized
Deductions

Is Form 1040, line 38, over $150,500 (over $75,250 if married filing separately)?
No. Your deduction is not limited. Add the amounts in the far right column
for lines 4 through 27. Also, enter this amount on Form 1040, line 40.
©
Yes. Your deduction may be limited. See page A-9 for the amount to enter.
If you elect to itemize deductions even though they are less than your standard deduction, check here ©

29

©

27

For Paperwork Reduction Act Notice, see Form 1040 instructions.

%

Cat. No. 11330X

28

Schedule A (Form 1040) 2006

2
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULES A&B (FORM 1040), PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8") x 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedules A&B (Form 1040) 2006

OMB No. 1545-0074

Name(s) shown on Form 1040. Do not enter name and social security number if shown on other side.

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Attachment
Sequence No.

Schedule B—Interest and Ordinary Dividends
Part I
Interest

1

Page

08

Amount

List name of payer. If any interest is from a seller-financed mortgage and the
buyer used the property as a personal residence, see page B-1 and list this
interest first. Also, show that buyer’s social security number and address ©

(See page B-1
and the
instructions for
Form 1040,
line 8a.)

2

Your social security number

1

Note. If you
received a Form
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the total interest
shown on that
form.

Part II
Ordinary
Dividends

2
3

Add the amounts on line 1
Excludable interest on series EE and I U.S. savings bonds issued after 1989.
Attach Form 8815
4 Subtract line 3 from line 2. Enter the result here and on Form 1040, line 8a ©
Note. If line 4 is over $1,500, you must complete Part III.
5

List name of payer

2
3
4
Amount

©

(See page B-1
and the
instructions for
Form 1040,
line 9a.)

Note. If you
received a Form
1099-DIV or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the ordinary
dividends shown
on that form.

5

6 Add the amounts on line 5. Enter the total here and on Form 1040, line 9a
Note. If line 6 is over $1,500, you must complete Part III.

Part III
Foreign
Accounts
and Trusts
(See
page B-2.)

©

6

You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; or (b) had
a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.

Yes No

7a At any time during 2006, did you have an interest in or a signature or other authority over a financial
account in a foreign country, such as a bank account, securities account, or other financial account?
See page B-2 for exceptions and filing requirements for Form TD F 90-22.1
b If “Yes,” enter the name of the foreign country ©
8 During 2006, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See page B-2

For Paperwork Reduction Act Notice, see Form 1040 instructions.
Printed on recycled paper

Schedule B (Form 1040) 2006

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Page 1 of 14 of 2005 Instructions for Schedules A & B (Form 1040)
10-NOV-2005

16:01 -

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

Department of the Treasury
Internal Revenue Service

2005 Instructions for Schedules A & B
(Form 1040)
Instructions for
Schedule A,
Itemized
Deductions

Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal
income tax will be less if you take the larger of your itemized deductions or your standard
deduction.
If you itemize, you can deduct a part of your medical and dental expenses and unreimbursed employee business expenses, and amounts you paid for certain taxes, interest,
contributions, and miscellaneous expenses. You can also deduct certain casualty and theft
losses.
If you and your spouse paid expenses jointly and are filing separate returns for 2005, see
Pub. 504 to figure the portion of joint expenses that you can claim as itemized deductions.

Do not include on Schedule A items deducted elsewhere, such as on Form 1040
or Schedule C, C-EZ, E, or F.

Section references are to the Internal Revenue Code unless otherwise noted.

What’s New
• Certain cash contributions paid after
August 27, 2005, are not subject to the
overall limitation on itemized deductions
or the 50% adjusted gross income limitation. See the instructions for line 15b on
page A-7.
• Casualty and theft losses that occurred
in the Hurricane Katrina disaster area after
August 24, 2005, are not subject to the
$100 and the 10% adjusted gross income
limitations if the loss was caused by Hurricane Katrina. See the instructions for line
19 on page A-8.
• The 2005 rate for use of your vehicle
to get medical care is 15 cents a mile (22
cents a mile after August 31, 2005).
• The 2005 rate for charitable use of
your vehicle to provide relief related to
Hurricane Katrina is 29 cents a mile after
August 24, 2005 (34 cents a mile after August 31, 2005).
• If you deduct more than $500 for a
contribution of a motor vehicle, boat, or
airplane, you must attach a statement from
the charitable organization to your return.
See the instructions for line 16 that begin
on page A-7.
• If you elected to deduct contributions
made in January 2005 for the relief of victims of the Indian Ocean tsunami on your
2004 return, you cannot deduct the contributions for 2005. See Contributions You
Cannot Deduct on page A-7.
• Special rules apply to certain contributions of food inventory and book inven-

tory made after August 27, 2005. For
details, see Pub. 526.
• Certain whaling captains may be able
to claim a charitable deduction for whale
hunting expenses. See Gifts to Charity on
page A-6 for more details.
• The tables and worksheet needed to
figure your state and local sales tax deduction using the optional method have been
added to the instructions for line 5 that begin on page A-3. Pub. 600 and Pub. 600-A
do not apply for 2005.
• Line 29 has been added to elect to
itemize even though your itemized deductions are less than your standard deduction.
This election was previously made on Form
1040.

Medical and Dental
Expenses
You can deduct only the part of your medical and dental expenses that exceeds 7.5%
of the amount on Form 1040, line 38.
Pub. 502 discusses the types of expenses that you can and cannot deduct. It
also explains when you can deduct capital
expenses and special care expenses for disabled persons.

If you received a distribution
from a health savings account
or a medical savings account in
2005, see Pub. 969 to figure
your deduction.

A-1
Cat. No. 24328L

Examples of Medical and
Dental Payments You Can
Deduct
To the extent you were not reimbursed, you
can deduct what you paid for:
• Insurance premiums for medical and
dental care, including premiums for qualified long-term care contracts as defined in
Pub. 502. But see Limit on long-term care
premiums you can deduct on page A-2. Reduce the insurance premiums by any
self-employed health insurance deduction
you claimed on Form 1040, line 29.
Note. If, during 2005, you were an eligible
trade adjustment assistance (TAA) recipient, alternative TAA recipient, or Pension
Benefit Guaranty Corporation pension recipient, you must reduce your insurance
premiums by any amounts used to figure
the health coverage tax credit. See the instructions for line 1 on page A-2.

You cannot deduct insurance
premiums paid with pretax dollars because the premiums are
not included in box 1 of your
Form(s) W-2.

• Prescription medicines or insulin.
• Acupuncturists, chiropractors, dentists, eye doctors, medical doctors, occupational therapists, osteopathic doctors,
physical therapists, podiatrists, psychiatrists, psychoanalysts (medical care only),
and psychologists.
• Medical examinations, X-ray and laboratory services, insulin treatment, and
whirlpool baths your doctor ordered.
• Nursing help (including your share of
the employment taxes paid). If you paid
someone to do both nursing and house-

Page 2 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
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work, you can deduct only the cost of the
nursing help.
• Hospital care (including meals and
lodging), clinic costs, and lab fees.
• Qualified long-term care services (see
Pub. 502).
• The supplemental part of Medicare insurance (Medicare B).
• A program to stop smoking and for
prescription medicines to alleviate nicotine
withdrawal.
• A weight-loss program as treatment
for a specific disease (including obesity)
diagnosed by a doctor.
• Medical treatment at a center for drug
or alcohol addiction.
• Medical aids such as eyeglasses, contact lenses, hearing aids, braces, crutches,
wheelchairs, and guide dogs, including the
cost of maintaining them.
• Surgery to improve defective vision,
such as laser eye surgery or radial keratotomy.
• Lodging expenses (but not meals)
while away from home to receive medical
care in a hospital or a medical care facility
related to a hospital, provided there was no
significant element of personal pleasure,
recreation, or vacation in the travel. Do not
deduct more than $50 a night for each eligible person.
• Ambulance service and other travel
costs to get medical care. If you used your
own car, you can claim what you spent for
gas and oil to go to and from the place you
received the care; or you can claim 15 cents
a mile (22 cents a mile for travel after August 31, 2005). Add parking and tolls to the
amount you claim under either method.

Examples of Medical and
Dental Payments You
Cannot Deduct
• The basic cost of Medicare insurance
(Medicare A).

If you were age 65 or older but
not entitled to social security
TIP
benefits, you can deduct premiums you voluntarily paid for
Medicare A coverage.

• The cost of diet food.
• Cosmetic surgery unless it was necessary to improve a deformity related to a
congenital abnormality, an injury from an
accident or trauma, or a disfiguring disease.
• Life insurance or income protection
policies.
• The Medicare tax on your wages and
tips or the Medicare tax paid as part of the
self-employment tax or household employment taxes.
• Nursing care for a healthy baby. But
you may be able to take a credit for the
amount you paid. See the instructions for
Form 1040, line 48.
• Illegal operations or drugs.
• Imported drugs not approved by the
U.S. Food and Drug Administration
(FDA). This includes foreign-made versions of U.S.-approved drugs manufactured
without FDA approval.
• Nonprescription medicines (including
nicotine gum and certain nicotine patches).
• Travel your doctor told you to take for
rest or a change.
• Funeral, burial, or cremation costs.

Line 1
Note. Certain medical expenses paid out of

a deceased taxpayer’s estate can be claimed
on the deceased taxpayer’s final return. See
Pub. 502 for details.

Limit on long-term care premiums you can
deduct. The amount you can deduct for

qualified long-term care contracts (as defined in Pub. 502) depends on the age, at
the end of 2005, of the person for whom the
premiums were paid. See the chart below
for details.
IF the person
was, at the end
of 2005, age . . .

THEN the most
you can deduct
is . . .

40 or under

$ 270

41–50

$ 510

51–60

$ 1,020

61–70

$ 2,720

71 or older

$ 3,400

Medical and Dental
Expenses
Enter the total of your medical and dental
expenses (see page A-1), after you reduce
these expenses by any payments received
from insurance or other sources. See Reimbursements on this page.

Do not forget to include insurance premiums you paid for
medical and dental care. But if
you claimed the self-employed
health insurance deduction on Form 1040,
line 29, reduce the premiums by the amount
on line 29.
Note. If, during 2005, you were an eligible
trade adjustment assistance (TAA) recipient, alternative TAA recipient, or Pension
Benefit Guaranty Corporation pension recipient, you must complete Form 8885
before completing Schedule A, line 1.
When figuring the amount of insurance
premiums you can deduct on Schedule A,
do not include any health coverage tax
credit advance payments shown in box 1 of
Form 1099-H. Also, subtract the amount

TIP

A-2

shown on Form 8885, line 4 (reduced by
any advance payments shown on line 6 of
that form), from the total insurance premiums you paid.
Whose medical and dental expenses can
you include? You can include medical and

dental bills you paid for:
• Yourself and your spouse.
• All dependents you claim on your return.
• Your child whom you do not claim as
a dependent because of the rules for children of divorced or separated parents.
• Any person you could have claimed as
a dependent on your return except that person received $3,200 or more of gross income or filed a joint return.
• Any person you could have claimed as
a dependent except that you, or your spouse
if filing jointly, can be claimed as a dependent on someone else’s 2005 return.
Example. You provided over half of
your mother’s support but cannot claim her
as a dependent because she received wages
of $3,200 in 2005. You can include on line
1 any medical and dental expenses you paid
in 2005 for your mother.
Reimbursements. If your insurance com-

pany paid the provider directly for part of
your expenses, and you paid only the
amount that remained, include on line 1
only the amount you paid. If you received a
reimbursement in 2005 for medical or dental expenses you paid in 2005, reduce your
2005 expenses by this amount. If you received a reimbursement in 2005 for prior
year medical or dental expenses, do not
reduce your 2005 expenses by this amount.
But if you deducted the expenses in the
earlier year and the deduction reduced your
tax, you must include the reimbursement in
income on Form 1040, line 21. See Pub.
502 for details on how to figure the amount
to include.
Cafeteria plans. Do not include on line 1

insurance premiums paid by an
employer-sponsored health insurance plan
(cafeteria plan) unless the premiums are
included in box 1 of your Form(s) W-2.
Also, do not include any other medical and
dental expenses paid by the plan unless the
amount paid is included in box 1 of your
Form(s) W-2.

Taxes You Paid
Taxes You Cannot Deduct
• Federal income and excise taxes.
• Social security, Medicare, federal unemployment (FUTA), and railroad retirement (RRTA) taxes.
• Customs duties.
• Federal estate and gift taxes. But see
the instructions for line 27 on page A-9.

Page 3 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
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• Certain state and local taxes, including: tax on gasoline, car inspection fees,
assessments for sidewalks or other improvements to your property, tax you paid
for someone else, and license fees (marriage, driver’s, dog, etc.).

Line 5
You can elect to deduct state
and local general sales taxes instead of state and local income
taxes. You cannot deduct
both.

State and Local Income
Taxes
If you deduct state and local income taxes,
check box a on line 5. Include on this line
the state and local income taxes listed below.
• State and local income taxes withheld
from your salary during 2005. Your
Form(s) W-2 will show these amounts.
Forms W-2G, 1099-G, 1099-R, and
1099-MISC may also show state and local
income taxes withheld.
• State and local income taxes paid in
2005 for a prior year, such as taxes paid
with your 2004 state or local income tax
return. Do not include penalties or interest.
• State and local estimated tax payments made during 2005, including any
part of a prior year refund that you chose to
have credited to your 2005 state or local
income taxes.
• Mandatory contributions you made to
the California, New Jersey, or New York
Nonoccupational Disability Benefit Fund,
Rhode Island Temporary Disability Benefit
Fund, or Washington State Supplemental
Workmen’s Compensation Fund.
Do not reduce your deduction by any:
• State or local income tax refund or
credit you expect to receive for 2005, or
• Refund of, or credit for, prior year
state and local income taxes you actually
received in 2005. Instead, see the instructions for Form 1040, line 10.

State and Local General
Sales Taxes
If you elect to deduct state and local general
sales taxes, you must check box b on line
5. To figure your deduction, you can use
either your actual expenses or the optional
sales tax tables.

Actual Expenses
Generally, you can deduct the actual state
and local general sales taxes (including
compensating use taxes) you paid in 2005
if the tax rate was the same as the general
sales tax rate. However, sales taxes on
food, clothing, medical supplies, and motor
vehicles are deductible as a general sales
tax even if the tax rate was less than the
general sales tax rate. Sales taxes on motor
vehicles are also deductible as a general
sales tax if the tax rate was more than the

general sales tax rate, but the tax is deductible only up to the amount of tax that would
have been imposed at the general sales tax
rate. Motor vehicles include cars,
motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans,
and off-road vehicles. Also include any
state and local general sales taxes paid for a
leased motor vehicle.
Do not include sales taxes paid on items
used in your trade or business.

You must keep your actual receipts showing general sales
taxes paid to use this method.
Refund of general sales taxes. If you re-

ceived a refund of state or local general
sales taxes in 2005 for amounts paid in
2005, reduce your 2005 state and local general sales taxes by this amount. If you received a refund of state or local general
sales taxes in 2005 for prior year purchases,
do not reduce your 2005 state and local
general sales taxes by this amount. But if
you deducted your state and local general
sales taxes in the earlier year and the deduction reduced your tax, you may have to
include the refund in income on Form
1040, line 21. See Recoveries in Pub. 525
for details.

Optional Sales Tax Tables
Instead of using your actual expenses, you
can use the tables on pages A-10 through
A-12 to figure your state and local general
sales tax deduction. You may also be able
to add the state and local general sales taxes
paid on certain specified items.
To figure your state and local general
sales tax deduction using the tables, complete the worksheet on page A-4.
Note. Instead of completing the worksheet,

you can use the 2005 Sales Tax Calculator
on the IRS website at www.irs.gov/pub/
irs-soi/SalesTaxCalc05.xls.

If your filing status is married
filing separately, both you and
your spouse elect to deduct
sales taxes, and your spouse
elects to use the optional sales tax tables,
you also must use the tables to figure your
state and local general sales tax deduction.

Instructions for Line 5b
Worksheet
Line 1. If you lived in the same state for all
of 2005, enter the applicable amount, based
on your 2005 income and exemptions, from
the optional state sales tax table for your
state on page A-10 or A-11. Read down the
“At least – But less than” columns for your
state and find the line that includes your
2005 income. If married filing separately,
do not include your spouse’s income. Your
2005 income is the amount shown on your
Form 1040, line 38, plus any nontaxable
items, such as the following.
• Tax-exempt interest.
• Veterans’ benefits.

A-3

• Nontaxable combat pay.
• Workers’ compensation.
• Nontaxable part of social security and

railroad retirement benefits.
• Nontaxable part of IRA, pension, or
annuity distributions. Do not include
rollovers.
• Public assistance payments.
The exemptions column refers to the number of exemptions claimed on Form 1040,
line 6d. Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina.
What if you lived in more than one
state? If you lived in more than one state
during 2005, look up the table amount for
each state using the above rules. If there is
no table for your state, the table amount is
considered to be zero. Multiply the table
amount for each state you lived in by a
fraction. The numerator of the fraction is
the number of days you lived in the state
during 2005 and the denominator is the total number of days in the year (365). Enter
the total of the prorated table amounts for
each state on line 1. However, if you also
lived in a locality during 2005 that imposed
a local general sales tax, do not enter the
total on line 1. Instead, complete a separate
worksheet for each state you lived in and
enter the prorated amount for that state on
line 1.
Example. You lived in State A from
January 1 through August 31, 2005 (243
days), and in State B from September 1
through December 31, 2005 (122 days).
The table amount for State A is $500. The
table amount for State B is $400. You
would figure your state general sales tax as
follows.
State A:
State B:
Total

$500 x 243/365 =
$400 x 122/365 =
=

$333
134
$467

If none of the localities in which you
lived during 2005 imposed a local general
sales tax, enter $467 on line 1 of your
worksheet. Otherwise, complete a separate
worksheet for State A and State B. Enter
$333 on line 1 of the State A worksheet and
$134 on line 1 of the State B worksheet.
Line 2. If you checked the “No” box, enter

-0- on line 2, and go to line 3. If you
checked the “Yes” box and lived in the
same locality for all of 2005, enter the applicable amount, based on your 2005 income and exemptions, from the optional
local sales tax table for your locality on
page A-12. Read down the “At least – But
less than” columns for your locality and
find the line that includes your 2005 income. See the line 1 instructions on this
page to figure your 2005 income. The exemptions column refers to the number of
exemptions claimed on Form 1040, line 6d.
Do not include any additional exemptions
you listed on Form 8914 for individuals
displaced by Hurricane Katrina.
What if you lived in more than one locality? If you lived in more than one locality during 2005, look up the table amount

Page 4 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
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for each locality using the above rules. If
there is no table for your locality, the table
amount is considered to be zero. Multiply
the table amount for each locality you lived
in by a fraction. The numerator of the fraction is the number of days you lived in the
locality during 2005 and the denominator is
the total number of days in the year (365).
If you lived in more than one locality in the
same state and the local general sales tax
rate was the same for each locality, enter
the total of the prorated table amounts for
each locality in that state on line 2. Otherwise, complete a separate worksheet for
lines 2 through 6 for each locality and enter
each prorated table amount on line 2 of the
applicable worksheet.
Example. You lived in Locality 1 from
January 1 through August 31, 2005 (243
days), and in Locality 2 from September 1
through December 31, 2005 (122 days).
The table amount for Locality 1 is $100.
The table amount for Locality 2 is $150.

You would figure the amount to enter on
line 2 as follows. Note that this amount
may not equal your local sales tax deduction, which is figured on line 6 of the worksheet.
Locality 1:
Locality 2:
Total

$100 x 243/365 =
$150 x 122/365 =
=

$ 67
50
$117

Line 3. If you lived in Virginia, check the

“No” box. Your state and local general
sales taxes are combined in the table on
page A-11.
If you lived in California, check the
“No” box if your combined state and local
general sales tax rate is 7.25%. Otherwise,
check the “Yes” box and include on line 3
only the part of the combined rate that is
more than 7.25%.
If you lived in Nevada, check the “No”
box if your combined state and local gen-

eral sales tax rate is 6.5%. Otherwise, check
the “Yes” box and include on line 3 only
the part of the combined rate that is more
than 6.5%
If you lived in Texarkana, Arkansas,
check the “Yes” box and enter “4.0” on line
3. Your local general sales tax rate of 4.0%
includes the additional 1.0% Arkansas state
sales tax rate for Texarkana and the 1.5%
sales tax rate for Miller County.
What if your local general sales tax rate
changed during 2005? If you checked the
“Yes” box and your local general sales tax
rate changed during 2005, figure the rate to
enter on line 3 as follows. Multiply each tax
rate for the period it was in effect by a
fraction. The numerator of the fraction is
the number of days the rate was in effect
during 2005 and the denominator is the total number of days in the year (365). Enter
the total of the prorated tax rates on line 3.

State and Local General Sales Tax Deduction Worksheet—Line 5b
(See the Instructions for Line 5b Worksheet that begin on page A-3.)

Keep for Your Records

1. Enter your state general sales taxes from the applicable table on page A-10 or A-11 (see instructions)

1.

2. Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only),
Colorado, Georgia, Illinois, Louisiana, New York (New York City only), or North Carolina in 2005?
No. Enter -0Yes. Enter your local general sales taxes from the applicable
table on page A-12 (see instructions)

}

.........

2.

3. Did your locality impose a local general sales tax in 2005? Virginia residents, check
the “No” box. Residents of California, Nevada, and Texarkana, Arkansas, see
instructions.
No. Skip lines 3 through 5, enter -0- on line 6, and go to line 7.
Yes. Enter your local general sales tax rate, but omit percentages (for example, if
your local general sales tax rate was 2.5%, enter 2.5). If your local general sales
tax rate changed or you lived in more than one locality in the same state during
2005, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Did you enter -0- on line 2 above?
No. Skip lines 4 and 5 and go to line 6.
Yes. Enter your state general sales tax rate (from the table heading for your state),
but omit percentages. For example, if your state general sales tax rate is 6%,
enter 6.0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) 5.
6. Did you enter -0- on line 2 above?
No. Multiply line 2 by line 3

}

. . . . . . . . . . . . . . . . . . . 6.

Yes. Multiply line 1 by line 5. If you lived in more than one locality in
the same state during 2005, see instructions.

7. Enter your general sales taxes paid on specified items, if any (see instructions) . . . . . . . . . . . . . . . . . . 7.
8. Deduction for general sales taxes. Add lines 1, 6, and 7. Enter the result here and the total from all
your worksheets, if applicable, on Schedule A, line 5. Be sure to check box b on that line . . . . . . . . . 8.

Note. If you elect to deduct general sales taxes, you cannot deduct your state and local income taxes.

A-4

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Example. Locality 1 imposed a 1% local general sales tax from January 1
through September 30, 2005 (273 days).
The rate increased to 1.75% for the period
from October 1 through December 31,
2005 (92 days). You would enter “1.189”
on line 3, figured as follows.
January 1 –
September 30:
October 1 –
December 31:
Total

1.00 x 273/365 =

0.748

1.75 x 92/365 =
=

0.441
1.189

What if you lived in more than one
locality in the same state during 2005?
Complete a separate worksheet for lines 2
through 6 for each locality in your state if
you lived in more than one locality in the
same state during 2005 and either of the
following applies.
• Each locality did not have the same
local general sales tax rate.
• You lived in Texarkana, AR; Los Angeles County, CA; or New York, NY.

To figure the amount to enter on line 3
of the worksheet for each locality in which
you lived (except a locality for which you
used the table on page A-12 to figure your
local general sales tax deduction), multiply
the local general sales tax rate by a fraction.
The numerator of the fraction is the number
of days you lived in the locality during
2005 and the denominator is the total number of days in the year (365).
Example. You lived in Locality 1 from
January 1 through August 31, 2005 (243
days), and in Locality 2 from September 1
through December 31, 2005 (122 days).
The local general sales tax rate for Locality
1 is 1%. The rate for Locality 2 is 1.75%.
You would enter “0.666” on line 3 for the
Locality 1 worksheet and “0.585” for the
Locality 2 worksheet, figured as follows.
Locality 1:
Locality 2:

1.00 x 243/365 =
1.75 x 122/365 =

0.666
0.585

Line 6. If you lived in more than one local-

ity in the same state during 2005, you
should have completed line 1 only on the
first worksheet for that state and separate
worksheets for lines 2 through 6 for any
other locality within that state in which you
lived during 2005. If you checked the
“Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by
the amount that you entered on line 1 for
that state on the first worksheet.
Line 7. Enter on line 7 any state and local

general sales taxes paid on the following
specified items. If you are completing more
than one worksheet, include the total for
line 7 on only one of the worksheets.
1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle,
sport utility vehicle, truck, van, and
off-road vehicle). Also include any state
and local general sales taxes paid for a
leased motor vehicle. If the state sales tax
rate on these items is higher than the general sales tax rate, only include the amount

of tax you would have paid at the general
sales tax rate.
2. An aircraft or boat, if the tax rate was
the same as the general sales tax rate.
3. A home (including a mobile home or
prefabricated home) or substantial addition
to or major renovation of a home, but only
if the tax rate was the same as the general
sales tax rate and any of the following applies.
a. Your state or locality imposes a general sales tax directly on the sale of a home
or on the cost of a substantial addition or
major renovation.
b. You purchased the materials to build
a home or substantial addition or to perform a major renovation and paid the sales
tax directly.
c. Under your state law, your contractor
is considered your agent in the construction
of the home or substantial addition or the
performance of a major renovation. The
contract must state that the contractor is
authorized to act in your name and must
follow your directions on construction decisions. In this case, you will be considered
to have purchased any items subject to a
sales tax and to have paid the sales tax
directly.

If your mortgage payments include your
real estate taxes, you can deduct only the
amount the mortgage company actually
paid to the taxing authority in 2005.
If you sold your home in 2005, any real
estate tax charged to the buyer should be
shown on your settlement statement and in
box 5 of any Form 1099-S you received.
This amount is considered a refund of real
estate taxes. See Refunds and rebates below. Any real estate taxes you paid at closing should be shown on your settlement
statement.
Refunds and rebates. If you received a re-

fund or rebate in 2005 of real estate taxes
you paid in 2005, reduce your deduction by
the amount of the refund or rebate. If you
received a refund or rebate in 2005 of real
estate taxes you paid in an earlier year, do
not reduce your deduction by this amount.
Instead, you must include the refund or rebate in income on Form 1040, line 21, if
you deducted the real estate taxes in the
earlier year and the deduction reduced your
tax. See Recoveries in Pub. 525 for details
on how to figure the amount to include in
income.

Line 7
Do not include sales taxes paid on items
used in your trade or business. If you received a refund of state or local general
sales taxes in 2005, see Refund of general
sales taxes on page A-3.

Line 6
Real Estate Taxes
Include taxes (state, local, or foreign) you
paid on real estate you own that was not
used for business, but only if the taxes are
based on the assessed value of the property.
Also, the assessment must be made uniformly on property throughout the community, and the proceeds must be used for
general community or governmental purposes. Pub. 530 explains the deductions
homeowners can take.
Do not include the following amounts
on line 6.
• Itemized charges for services to specific property or persons (for example, a
$20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons
of water consumed, or a flat charge for
mowing a lawn that had grown higher than
permitted under a local ordinance).
• Charges for improvements that tend to
increase the value of your property (for example, an assessment to build a new sidewalk). The cost of a property improvement
is added to the basis of the property. However, a charge is deductible if it is used only
to maintain an existing public facility in
service (for example, a charge to repair an
existing sidewalk, and any interest included
in that charge).

A-5

Personal Property Taxes
Enter personal property tax you paid, but
only if it is based on value alone and it is
charged on a yearly basis.
Example. You paid a yearly fee for the
registration of your car. Part of the fee was
based on the car’s value and part was based
on its weight. You can deduct only the part
of the fee that was based on the car’s value.

Line 8
Other Taxes
If you had any deductible tax not listed on
line 5, 6, or 7, list the type and amount of
tax. Enter only one total on line 8. Include
on this line income tax you paid to a foreign
country or U.S. possession.

TIP

You may want to take a credit
for the foreign tax instead of a
deduction. See the instructions
for Form 1040, line 47, for

details.

Interest You Paid
Whether your interest expense is treated as
investment interest, personal interest, or
business interest depends on how and when
you used the loan proceeds. See Pub. 535
for details.
In general, if you paid interest in 2005
that applies to any period after 2005, you
can deduct only amounts that apply for
2005.

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Lines 10 and 11
Home Mortgage Interest
A home mortgage is any loan that is secured by your main home or second home.
It includes first and second mortgages,
home equity loans, and refinanced mortgages.
A home can be a house, condominium,
cooperative, mobile home, boat, or similar
property. It must provide basic living accommodations including sleeping space,
toilet, and cooking facilities.
Limit on home mortgage interest. If you
took out any mortgages after October 13,
1987, your deduction may be limited. Any
additional amounts borrowed after October
13, 1987, on a line-of-credit mortgage you
had on that date are treated as a mortgage
taken out after October 13, 1987. If you
refinanced a mortgage you had on October
13, 1987, treat the new mortgage as taken
out on or before October 13, 1987. But if
you refinanced for more than the balance of
the old mortgage, treat the excess as a mortgage taken out after October 13, 1987.
See Pub. 936 to figure your deduction if
either (1) or (2) below applies. If you had
more than one home at the same time, the
dollar amounts in (1) and (2) apply to the
total mortgages on both homes.
1. You took out any mortgages after October 13, 1987, and used the proceeds for
purposes other than to buy, build, or improve your home, and all of these mortgages totaled over $100,000 at any time
during 2005. The limit is $50,000 if married filing separately. An example of this
type of mortgage is a home equity loan
used to pay off credit card bills, buy a car,
or pay tuition.
2. You took out any mortgages after October 13, 1987, and used the proceeds to
buy, build, or improve your home, and
these mortgages plus any mortgages you
took out on or before October 13, 1987,
totaled over $1 million at any time during
2005. The limit is $500,000 if married filing separately.

If the total amount of all mortgages is more than the fair market value of the home,
additional limits apply. See
Pub. 936.

Line 10
Enter on line 10 mortgage interest and
points reported to you on Form 1098 under
your social security number (SSN). If this
form shows any refund of overpaid interest,
do not reduce your deduction by the refund.
Instead, see the instructions for Form 1040,
line 21. If you and at least one other person
(other than your spouse if filing jointly)
were liable for and paid interest on the
mortgage, and the interest was reported on
Form 1098 under the other person’s SSN,
report your share of the interest on line 11
(as explained in the line 11 instructions below).

If you paid more interest to the recipient
than is shown on Form 1098, see Pub. 936
to find out if you can deduct the additional
interest. If you can, attach a statement explaining the difference and enter “See attached” to the right of line 10.

If you are claiming the mortgage interest credit (for holders
of qualified mortgage credit
certificates issued by state or local governmental units or agencies), subtract the amount shown on Form 8396, line
3, from the total deductible interest you
paid on your home mortgage. Enter the result on line 10.

Line 11
If you did not receive a Form 1098 from the
recipient, report your deductible mortgage
interest on line 11.
If you bought your home from the recipient, be sure to show that recipient’s name,
identifying no., and address on the dotted
lines next to line 11. If the recipient is an
individual, the identifying no. is his or her
social security number (SSN). Otherwise, it
is the employer identification number. You
must also let the recipient know your SSN.
If you do not show the required information
about the recipient or let the recipient know
your SSN, you may have to pay a $50 penalty.
If you and at least one other person
(other than your spouse if filing jointly)
were liable for and paid interest on the
mortgage, and the other person received the
Form 1098, attach a statement to your return showing the name and address of that
person. To the right of line 11, enter “See
attached.”

Line 12
Points Not Reported on
Form 1098
Points are shown on your settlement statement. Points you paid only to borrow
money are generally deductible over the
life of the loan. See Pub. 936 to figure the
amount you can deduct. Points paid for
other purposes, such as for a lender’s services, are not deductible.
Refinancing. Generally, you must deduct
points you paid to refinance a mortgage
over the life of the loan. This is true even if
the new mortgage is secured by your main
home.

If you used part of the proceeds to improve your main home, you may be able to
deduct the part of the points related to the
improvement in the year paid. See Pub. 936
for details.

TIP

If you paid off a mortgage
early, deduct any remaining
points in the year you paid off
the mortgage.

A-6

Line 13
Investment Interest
Investment interest is interest paid on
money you borrowed that is allocable to
property held for investment. It does not
include any interest allocable to passive activities or to securities that generate tax-exempt income.
Complete and attach Form 4952 to figure your deduction.
Exception. You do not have to file Form

4952 if all three of the following apply.
1. Your investment interest expense is
not more than your investment income
from interest and ordinary dividends minus
any qualified dividends.
2. You have no other deductible investment expenses.
3. You have no disallowed investment
interest expense from 2004.

Alaska Permanent Fund dividends, including those reported
on Form 8814, are not investment income.
For more details, see Pub. 550.

Gifts to Charity
You can deduct contributions or gifts you
gave to organizations that are religious,
charitable, educational, scientific, or literary in purpose. You can also deduct what
you gave to organizations that work to prevent cruelty to children or animals. Certain
whaling captains may be able to deduct
expenses paid in 2005 for Native Alaskan
subsistence bowhead whale hunting activities. See Pub. 526 for details.
To verify an organization’s charitable
status, you can:
• Check with the organization to which
you made the donation. The organization
should be able to provide you with verification of its charitable status.
• See Pub. 78 for a list of most qualified
organizations. You can access Pub. 78 on
the IRS website at www.irs.gov under
Charities and Non-Profits.
• Call our Tax Exempt/Government Entities Customer Account Services at
1-877-829-5500. Assistance is available
Monday through Friday from 8:30 a.m. to
5:30 p.m. Eastern Time.

Examples of Qualified Charitable
Organizations

• Churches, mosques, synagogues, temples, etc.
• Boy Scouts, Boys and Girls Clubs of
America, CARE, Girl Scouts, Goodwill Industries, Red Cross, Salvation Army,
United Way, etc.
• Fraternal orders, if the gifts will be
used for the purposes listed above.
• Veterans’ and certain cultural groups.

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• Nonprofit schools, hospitals, and organizations whose purpose is to find a cure
for, or help people who have, arthritis,
asthma, birth defects, cancer, cerebral
palsy, cystic fibrosis, diabetes, heart disease, hemophilia, mental illness or retardation, multiple sclerosis, muscular
dystrophy, tuberculosis, etc.
• Federal, state, and local governments
if the gifts are solely for public purposes.

Contributions You Can
Deduct
Contributions can be in cash (keep canceled checks, receipts, or other reliable
written records showing the name of the
organization and the date and amount
given), property, or out-of-pocket expenses
you paid to do volunteer work for the kinds
of organizations described earlier. If you
drove to and from the volunteer work, you
can take the actual cost of gas and oil or 14
cents a mile. But, if the volunteer work was
to provide relief related to Hurricane Katrina after August 24, 2005, this amount is
increased to 29 cents a mile (34 cents a mile
after August 31, 2005). Add parking and
tolls to the amount you claim under either
method. But do not deduct any amounts
that were repaid to you.
Gifts from which you benefit. If you made

a gift and received a benefit in return, such
as food, entertainment, or merchandise,
you can generally only deduct the amount
that is more than the value of the benefit.
But this rule does not apply to certain membership benefits provided in return for an
annual payment of $75 or less. For details,
see Pub. 526.
Example. You paid $70 to a charitable
organization to attend a fund-raising dinner
and the value of the dinner was $40. You
can deduct only $30.
Gifts of $250 or more. You can deduct a

gift of $250 or more only if you have a
statement from the charitable organization
showing the information in (1) and (2) below.
In figuring whether a gift is $250 or
more, do not combine separate donations.
For example, if you gave your church $25
each week for a total of $1,300, treat each
$25 payment as a separate gift. If you made
donations through payroll deductions, treat
each deduction from each paycheck as a
separate gift. See Pub. 526 if you made a
separate gift of $250 or more through payroll deduction.
1. The amount of any money contributed and a description (but not value) of
any property donated.
2. Whether the organization did or did
not give you any goods or services in return
for your contribution. If you did receive
any goods or services, a description and
estimate of the value must be included. If
you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but

it does not have to describe or value the
benefit.

You must get the statement by
the date you file your return or
the due date (including extensions) for filing your return,
whichever is earlier. Do not attach the
statement to your return. Instead, keep it for
your records.

TIP

Limit on the amount you can deduct. See

Pub. 526 to figure the amount of your deduction if any of the following applies.
1. Your cash contributions or contributions of ordinary income property are more
than 30% of the amount on Form 1040, line
38.
2. Your gifts of capital gain property are
more than 20% of the amount on Form
1040, line 38.
3. You gave gifts of property that increased in value or gave gifts of the use of
property.

The limit described in item (1)
above does not apply to certain
TIP
cash contributions paid after
August 27, 2005, if you elect to
treat those contributions as qualified contributions. See the instructions for line 15b on
this page for details.

Contributions You Cannot
Deduct
• Any contribution you made in January
2005 for the relief of victims in areas affected by the December 26, 2004, Indian
Ocean tsunami that you elected to deduct
on your 2004 return.
• Travel expenses (including meals and
lodging) while away from home, unless
there was no significant element of personal pleasure, recreation, or vacation in
the travel.
• Political contributions.
• Dues, fees, or bills paid to country
clubs, lodges, fraternal orders, or similar
groups.
• Cost of raffle, bingo, or lottery tickets.
But you may be able to deduct these expenses on line 27. See page A-9 for details.
• Cost of tuition. But you may be able to
deduct this expense on line 20 (see page
A-8), or Form 1040, line 34, or take a credit
for this expense (see Form 8863).
• Value of your time or services.
• Value of blood given to a blood bank.
• The transfer of a future interest in tangible personal property (generally, until the
entire interest has been transferred).
• Gifts to individuals and groups that
are run for personal profit.
• Gifts to foreign organizations. But
you may be able to deduct gifts to certain
U.S. organizations that transfer funds to
foreign charities and certain Canadian, Is-

A-7

raeli, and Mexican charities. See Pub. 526
for details.
• Gifts to organizations engaged in certain political activities that are of direct financial interest to your trade or business.
See section 170(f)(9).
• Gifts to groups whose purpose is to
lobby for changes in the laws.
• Gifts to civic leagues, social and
sports clubs, labor unions, and chambers of
commerce.
• Value of benefits received in connection with a contribution to a charitable organization. See Pub. 526 for exceptions.

Line 15a
Total Gifts by Cash or Check
Enter on line 15a the total gifts you made in
cash or by check (including out-of-pocket
expenses).

Line 15b
Qualified Contributions
In general, you can elect to treat gifts by
cash or check as qualified contributions if
the gifts were paid after August 27, 2005, to
a qualified charitable organization (other
than certain private foundations described
in section 509(a)(3)). Qualified contributions are not subject to the overall limitation on itemized deductions or the 50%
adjusted gross income limitation.
Qualified contributions do not include
contributions to organizations for which
cash gifts are subject to a limit based on
30% of your adjusted gross income (such
as contributions to veterans’ organizations,
fraternal societies, nonprofit cemeteries,
and certain private nonoperating foundations). Also, qualified contributions do not
include any contributions to a segregated
fund or account for which you (or any person appointed or designated by you) have,
or reasonably expect to have, advisory
privileges with respect to distributions or
investments based on your contribution.
Certain limits may apply if your qualified contributions are more than the amount
on Form 1040, line 38, minus all other allowable contributions. For details, see Pub.
526.

Line 16
Other Than by Cash or
Check
Enter your contributions of property. If you
gave used items, such as clothing or furniture, deduct their fair market value at the
time you gave them. Fair market value is
what a willing buyer would pay a willing
seller when neither has to buy or sell and
both are aware of the conditions of the sale.

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For more details on determining the value
of donated property, see Pub. 561.
If the amount of your deduction is more
than $500, you must complete and attach
Form 8283. For this purpose, the “amount
of your deduction” means your deduction
before applying any income limits that
could result in a carryover of contributions.
If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane,
you must also attach a statement from the
charitable organization to your return. If
your total deduction is over $5,000, you
may also have to get appraisals of the values of the donated property. See Form 8283
and its instructions for details.
Recordkeeping. If you gave property, you
should keep a receipt or written statement
from the organization you gave the property to, or a reliable written record, that
shows the organization’s name and address, the date and location of the gift, and a
description of the property. For each gift of
property, you should also keep reliable
written records that include:
• How you figured the property’s value
at the time you gave it. If the value was
determined by an appraisal, keep a signed
copy of the appraisal.
• The cost or other basis of the property
if you must reduce it by any ordinary income or capital gain that would have resulted if the property had been sold at its
fair market value.
• How you figured your deduction if
you chose to reduce your deduction for
gifts of capital gain property.
• Any conditions attached to the gift.

If your total deduction for gifts
of property is over $500, you
gave less than your entire interest in the property, or you made
a “qualified conservation contribution,”
your records should contain additional information. See Pub. 526 for details.

Line 17
Carryover From Prior Year
Enter any carryover of contributions that
you could not deduct in an earlier year because they exceeded your adjusted gross
income limit. See Pub. 526 for details.

Casualty and Theft
Losses
Line 19
Complete and attach Form 4684 to figure
the amount of your loss to enter on line 19.
You may be able to deduct part or all of
each loss caused by theft, vandalism, fire,
storm, or similar causes, and car, boat, and
other accidents. You may also be able to

deduct money you had in a financial institution but lost because of the insolvency or
bankruptcy of the institution.
You can deduct nonbusiness casualty or
theft losses only to the extent that:
1. The amount of each separate casualty
or theft loss is more than $100, and
2. The total amount of all losses during
the year (reduced by the $100 limit discussed in (1) above) is more than 10% of
the amount on Form 1040, line 38.

The limits in items (1) and (2)
above do not apply to casualty
and theft losses that occurred in
the Hurricane Katrina disaster
area after August 24, 2005, if the loss was
caused by Hurricane Katrina. See Form
4684 and its instructions for details.
Special rules apply if you had both gains
and losses from nonbusiness casualties or
thefts. See Form 4684 and its instructions
for details.
Use Schedule A, line 22, to deduct the
costs of proving that you had a property
loss. Examples of these costs are appraisal
fees and photographs used to establish the
amount of your loss.
For information on federal disaster area
losses, see Pub. 547. For information on tax
benefits related to Hurricane Katrina, see
Pub. 4492.

TIP

• Expenses of adopting a child. But you
may be able to take a credit for adoption
expenses. See Form 8839 for details.
• Fines and penalties.
• Expenses of producing tax-exempt income.

Line 20
Unreimbursed Employee
Expenses
Enter the total ordinary and necessary job
expenses you paid for which you were not
reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not
considered reimbursements.)
An ordinary expense is one that is common and accepted in your field of trade,
business, or profession. A necessary expense is one that is helpful and appropriate
for your business. An expense does not
have to be required to be considered necessary.
But you must fill in and attach Form
2106 if either (1) or (2) below applies.
1. You claim any travel, transportation,
meal, or entertainment expenses for your
job.
2. Your employer paid you for any of
your job expenses reportable on line 20.

If you used your own vehicle
and (2) above does not apply,
you may be able to file Form
2106-EZ instead.
If you do not have to file Form 2106 or
2106-EZ, list the type and amount of each
expense on the dotted line next to line 20. If
you need more space, attach a statement
showing the type and amount of each expense. Enter one total on line 20.

TIP

Job Expenses and
Certain Miscellaneous
Deductions
You can deduct only the part of these expenses that exceeds 2% of the amount on
Form 1040, line 38.
Pub. 529 discusses the types of expenses that can and cannot be deducted.

Examples of Expenses You
Cannot Deduct
• Political contributions.
• Personal legal expenses.
• Lost or misplaced cash or property.
• Expenses for meals during regular or
extra work hours.
• The cost of entertaining friends.
• Commuting expenses. See Pub. 529
for the definition of commuting.
• Travel expenses for employment
away from home if that period of employment exceeds 1 year. See Pub. 529 for an
exception for certain federal employees.
• Travel as a form of education.
• Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment.
• Club dues. See Pub. 529 for exceptions.

A-8

Do not include on line 20 any
educator expenses you deducted on Form 1040, line 23.
Examples of other expenses to include
on line 20 are:
• Safety equipment, small tools, and
supplies needed for your job.
• Uniforms required by your employer
that are not suitable for ordinary wear.
• Protective clothing required in your
work, such as hard hats, safety shoes, and
glasses.
• Physical examinations required by
your employer.
• Dues to professional organizations
and chambers of commerce.
• Subscriptions to professional journals.
• Fees to employment agencies and
other costs to look for a new job in your
present occupation, even if you do not get a
new job.
• Certain business use of part of your
home. For details, including limits that apply, use TeleTax topic 509 (see page 8 of

Page 9 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

the Form 1040 instructions) or see Pub.
587.
• Certain educational expenses. For details, use TeleTax topic 513 (see page 8 of
the Form 1040 instructions) or see Pub.
970. Reduce your educational expenses by
any tuition and fees deduction you claimed
on Form 1040, line 34.

TIP

You may be able to take a credit
for your educational expenses
instead of a deduction. See
Form 8863 for details.

Line 21
Tax Preparation Fees
Enter the fees you paid for preparation of
your tax return, including fees paid for filing your return electronically. If you paid
your tax by credit card, do not include the
convenience fee you were charged.

• Certain legal and accounting fees.
• Clerical help and office rent.
• Custodial (for example, trust account)

fees.

• Your share of the investment expenses of a regulated investment company.
• Certain losses on nonfederally insured
deposits in an insolvent or bankrupt financial institution. For details, including limits
that apply, see Pub. 529.
• Casualty and theft losses of property
used in performing services as an employee
from Form 4684, lines 35 and 41b, or Form
4797, line 18a.
• Deduction for repayment of amounts
under a claim of right if $3,000 or less.

Other Miscellaneous
Deductions
Line 27

Line 22
Other Expenses
Enter the total amount you paid to produce
or collect taxable income and manage or
protect property held for earning income.
But do not include any personal expenses.
List the type and amount of each expense
on the dotted lines next to line 22. If you
need more space, attach a statement showing the type and amount of each expense.
Enter one total on line 22.
Examples of expenses to include on line
22 are:

Only the expenses listed next can be deducted on this line. List the type and
amount of each expense on the dotted lines
next to line 27. If you need more space,
attach a statement showing the type and
amount of each expense. Enter one total on
line 27.

• Gambling losses, but only to the extent of gambling winnings reported on
Form 1040, line 21.
• Casualty and theft losses of
income-producing property from Form

Itemized Deductions Worksheet—Line 28

4684, lines 35 and 41b, or Form 4797, line
18a.
• Loss from other activities from
Schedule K-1(Form 1065-B), box 2.
• Federal estate tax on income in respect of a decedent.
• Amortizable bond premium on bonds
acquired before October 23, 1986.
• Deduction for repayment of amounts
under a claim of right if over $3,000. See
Pub. 525 for details.
• Certain unrecovered investment in a
pension.
• Impairment-related work expenses of
a disabled person.
For more details, see Pub. 529.

Total Itemized
Deductions
Line 28
Use the worksheet below to figure the
amount to enter on line 28 if the amount on
Form 1040, line 38, is over $145,950
($72,975 if married filing separately).

Line 29
If you elect to itemize for state tax or other
purposes even though your itemized deductions are less than your standard deduction,
check the box on line 29.

Keep for Your Records

1. Enter the total of the amounts from Schedule A, lines 4, 9, 14, 18, 19, 26, and 27 . . . . . . . . . . . . .
2. Enter the total of the amounts from Schedule A, lines 4, 13, 15b, and 19, plus any gambling and
casualty or theft losses included on line 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.
2.

Be sure your total gambling and casualty or theft losses are clearly identified on the
dotted lines next to line 27.
3. Is the amount on line 2 less than the amount on line 1?
STOP
No.
Your deduction is not limited. Enter the amount from line 1 above on Schedule A,
line 28.
Yes. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Multiply line 3 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter: $145,950 ($72,975 if married filing separately) . . . . . . . . . . . . . . . . . . . 6.
7. Is the amount on line 6 less than the amount on line 5?
STOP
No.
Your deduction is not limited. Enter the amount from line 1
above on Schedule A, line 28.
Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Multiply line 7 by 3% (.03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Total itemized deductions. Subtract line 9 from line 1. Enter the result here and on Schedule A,
line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

A-9

Page 10 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2005 Optional State and Certain Local Sales Tax Tables
Income
At
least

But
less
than

Exemptions
1

2

3

4

Exemptions
5

Over
5

1

2

3

4

4.0000% Arizona

Alabama

Exemptions
5

Over
5

195
299
351
396

236
361
423
476

265
404
473
532

288
437
512
575

307
466
545
612

333
506
591
663

183
324
400
468

212
374
462
539

231
407
502
587

245
432
533
623

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

436
472
507
538
568

524
567
607
645
680

584
632
676
718
757

632
683
731
775
817

671
725
776
823
867

728
786
841
891
939

530
587
643
694
744

610
676
740
799
856

664
735
804
868
930

705 738 785
781 818 869
853 894 950
922 965 1026
987 1034 1099

608
662
709
756
799

726 808 872
790 878 947
845 939 1012
901 1000 1077
950 1054 1136

925
1005
1074
1142
1204

1001 810 932
1086 903 1038
1161 984 1132
1234 1067 1226
1300 1142 1313

1013
1127
1229
1331
1425

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

2

3

4

3

6.0000% California

2

3

4

7.2500% Colorado

2.9000%

565
627
686
741
794

655 715 761 799 852
726 792 843 885 943
794 866 921 967 1031
858 935 995 1044 1113
919 1002 1066 1119 1192

243
267
290
312
332

279
306
332
357
380

303
332
360
387
412

321
352
382
409
436

335
368
399
428
456

356
391
423
454
483

1297
1444
1573
1704
1823

359
397
430
463
493

411
453
491
529
563

445
491
531
572
609

471
519
562
605
644

492
543
587
632
673

522
575
622
670
712

1010 1198 1326 1426 1510 1628 1530 1755 1905 2019 2113 2244 1769 2097 2321 2496 2643 2849 1637 1887 2053 2181 2287 2435

646

736

795

841

878

929

2

1229
1346
1447
1548
1640

1364
1493
1605
1717
1818

5.7500% Florida

1470
1608
1729
1849
1957

1187
1292
1391
1483
1569

1559
1705
1832
1958
2073

1684 865 1000 1090
1841 964 1114 1214
1978 1052 1215 1324
2114 1140 1317 1434
2237 1221 1410 1535

1160
1291
1407
1525
1632

279
491
605
706

Over
5

138
229
277
318

1098
1195
1287
1372
1453

265
467
576
672

5

130
216
261
300

1032
1130
1216
1302
1380

249
438
541
631

1

124
206
249
287

721 862 959 1034
787 940 1044 1126
848 1013 1125 1213
906 1080 1200 1294
960 1145 1271 1370

459 498
732 793
871 943
991 1072

Over
5

117
194
235
270

6.0000% District of Columbia

432
690
821
933

Exemptions
5

107
179
216
249

2

399
638
760
865

4

93
155
188
217

Connecticut

358
573
683
777

2

298
524
646
753

1196
1330
1450
1571
1680

297
478
570
650

1

227
401
495
578

1125
1252
1365
1478
1582

274
482
595
694

Over
5

195
346
427
499

1074
1196
1303
1412
1511

257
453
559
653

Exemptions
5

1

5.6000% Arkansas

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1

1217
1355
1477
1600
1712

2
4.0000% Hawaii

6.0000% Georgia

4.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

179
317
392
458

202
358
442
516

217
384
475
555

228
404
499
584

238
421
520
607

250
443
548
640

153
273
338
395

175
312
386
451

190
337
417
488

201
357
442
517

210
373
462
540

223
396
489
572

192
335
411
479

226
393
482
561

249
431
529
615

301
521
639
743

137
230
278
321

156
261
316
364

169
282
341
393

179
298
360
414

187
311
376
432

197
328
397
457

207
333
398
453

250
401
477
544

279
447
532
605

302
483
575
654

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

519
575
629
680
729

585
648
709
766
821

628
696
761
823
881

661
732
801
865
927

687 724
762 803
833 878
900 949
965 1016

448
497
544
588
631

511
567
621
671
720

553
614
672
726
778

585
649
710
768
823

612
678
742
802
860

648
719
787
850
911

541
598
653
704
753

632
699
763
822
880

694 742 782 837
767 820 863 924
837 894 941 1008
902 964 1015 1086
964 1030 1085 1161

359
394
428
460
490

408
448
486
521
555

439
482
523
562
598

464
509
552
592
630

483
530
575
617
657

511
560
607
651
693

503
549
592
632
670

603
657
708
756
801

671
731
788
840
890

725 769 833
789 838 906
850 902 976
907 962 1040
960 1019 1101

120,000 793 894
140,000 884 996
160,000 964 1086
180,000 1044 1176
200,000 1118 1259

960
1069
1165
1263
1351

1009
1124
1226
1328
1421

530
585
634
682
727

600
662
717
772
822

646
713
772
831
884

681
751
813
875
931

710 749
783 826
847 893
911 961
970 1023

100,000
120,000
140,000
160,000
180,000

200,000 or more

Income

1050
1169
1275
1381
1478

1106
1232
1343
1455
1557

687 784 848 897 937 992 819 956
766 874 945 999 1044 1105 910 1061
836 953 1031 1090 1138 1206 990 1155
907 1034 1117 1181 1234 1307 1072 1249
971 1107 1197 1265 1321 1399 1146 1335

1047
1163
1265
1368
1462

266
462
566
658

1119
1242
1351
1460
1560

281
486
596
693

1178
1307
1421
1536
1641

1260
1398
1520
1643
1755

1495 1684 1807 1900 1976 2081 1302 1484 1603 1694 1769 1873 1524 1773 1940 2069 2176 2326

6.2500% Indiana2

5.5000% Illinois

Idaho

1093
1195
1285
1374
1454

349
556
661
752

1182
1292
1388
1484
1570

952 1075 1155 1216 1265 1334 1235 1467 1626 1750 1854 2001

6.0000% Iowa

5.0000% Kansas

5.3000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

266
408
479
540

323
494
579
651

458
693
810
909

199
346
424
493

233
403
494
574

256
442
542
629

308
531
650
755

208
343
413
474

243
398
479
549

266
435
523
599

283
463
556
637

318
519
623
713

177
308
378
440

204
355
436
507

223
387
474
551

237
411
504
585

248
431
528
614

264
458
562
653

256
408
485
551

313
495
588
667

383
604
716
811

409
644
763
865

446
702
831
941

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

595
644
691
734
775

716 799 865 919 997
774 864 934 993 1077
830 925 1000 1063 1152
881 981 1061 1127 1221
929 1035 1118 1187 1286

556
615
671
723
773

648
715
780
841
899

709 756 795 850
783 835 878 938
853 910 957 1022
920 980 1031 1101
983 1048 1101 1176

529
580
628
673
716

612
671
726
777
826

668
731
791
846
900

710 745 794
777 815 869
841 882 939
900 944 1005
956 1002 1067

496
548
598
645
689

572
631
689
742
794

622
687
749
807
863

660
729
795
857
916

692 736
764 813
833 886
898 955
959 1020

611
665
716
763
808

738 827 897
803 899 975
864 967 1048
921 1030 1116
975 1090 1181

956
1039
1117
1189
1257

1040
1129
1214
1292
1366

1347
1470
1577
1684
1780

1463
1596
1712
1827
1931

100,000
120,000
140,000
160,000
180,000

120,000 829 992
140,000 903 1079
160,000 967 1155
180,000 1031 1230
200,000 1089 1298

200,000 or more

Income

363
553
647
727

1105
1200
1284
1366
1441

394
599
701
787

1193
1295
1385
1474
1554

420
638
746
838

1267
1375
1470
1563
1648

1372 840 976 1067
1488 933 1083 1184
1590 1015 1178 1287
1690 1098 1274 1391
1781 1173 1360 1486

273
472
578
671

1137
1261
1371
1482
1583

288
497
608
706

1195
1326
1441
1557
1662

1276 773 891 970 1030
1415 851 981 1067 1133
1538 920 1059 1152 1223
1662 989 1138 1237 1313
1774 1052 1210 1315 1395

298
487
584
669

720 860 956 1031
789 941 1045 1127
849 1012 1124 1212
909 1083 1202 1296
963 1147 1273 1372

321
513
611
694

1080
1188
1282
1376
1462

1150 749 862 937 994
1264 831 956 1039 1103
1364 904 1040 1130 1199
1464 978 1124 1222 1296
1554 1044 1201 1305 1384

1042
1155
1256
1358
1450

352
556
659
748

1107 868 1045 1168
1228 949 1142 1276
1335 1020 1227 1370
1443 1091 1311 1463
1541 1155 1387 1547

1265
1381
1482
1583
1674

1378 1635 1812 1950 2066 2230 1558 1805 1969 2096 2201 2347 1369 1571 1705 1808 1892 2010 1386 1592 1729 1833 1920 2040 1475 1766 1967 2125 2258 2447

Kentucky2

6.0000% Louisiana

4.0000% Maine2

5.0000% Maryland2

5.0000% Massachusetts2

5.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

202
335
405
465

234
387
466
536

255
421
507
582

271
447
539
618

285
469
564
647

303
499
600
688

141
245
302
351

161
281
345
401

175
304
373
434

185
322
395
459

194
336
413
480

205
356
437
508

129
228
282
329

151
266
328
383

165
291
359
419

177
311
383
447

186
327
403
470

199
350
431
503

158
275
338
394

184
319
392
456

202
349
428
498

215
372
456
530

227
391
479
557

242
418
512
594

145
250
307
357

164
284
348
404

177
306
375
435

187
323
395
459

196
337
412
478

207
356
436
505

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

520
571
619
664
707

599
656
711
762
811

650
713
772
827
880

690
756
819
877
933

723 768
792 841
857 910
918 975
976 1037

396
438
478
515
551

452
500
545
588
629

490
541
590
636
680

518
572
624
673
719

541
598
652
703
751

573
633
691
744
796

373
413
452
489
524

433
480
525
567
608

474
525
574
620
664

506
560
612
661
708

532
589
643
695
744

568
629
687
742
794

445
492
537
580
620

514
568
620
669
715

561
620
676
729
779

597
660
719
775
829

627
693
755
814
870

670
739
806
868
927

402
444
485
522
558

456
503
548
591
631

490
541
590
636
679

517
571
622
670
716

539
595
648
698
746

569
628
684
737
787

598
664
723
782
835

683 739 781 816 864
758 820 867 905 959
825 892 943 984 1042
892 964 1019 1064 1127
953 1030 1088 1137 1203

570
635
693
751
805

662 723 770 809 864
737 805 857 901 961
803 877 934 981 1048
870 950 1012 1063 1134
932 1017 1083 1137 1214

674 777 846 900 944 1006
749 863 939 999 1048 1116
816 939 1022 1086 1139 1214
883 1016 1105 1174 1231 1311
945 1086 1181 1254 1315 1400

606
673
732
791
845

685 737 777 809 854
760 818 861 897 946
827 889 936 975 1028
893 960 1011 1053 1110
954 1025 1080 1124 1185

100,000
120,000
140,000
160,000
180,000

120,000 763 876 950 1007
140,000 842 965 1046 1108
160,000 911 1043 1131 1198
180,000 980 1122 1216 1287
200,000 1043 1193 1293 1369

200,000 or more

Income

1053
1159
1253
1346
1431

1118
1230
1329
1428
1518

1361 1555 1682 1779 1859 1970 1109 1264 1365 1443 1506 1594 1078 1247 1359 1447 1519 1619 1259 1444 1568 1664 1743 1855 1121 1264 1357 1428 1486 1567
2

Michigan

6.0000% Minnesota

6.5000% Mississippi

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

196
340
417
485

228
395
484
562

250
431
528
614

299
515
631
732

184
323
398
465

210
369
455
531

228
400
493
575

242
424
522
608

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

546
604
659
710
759

633
700
763
822
879

691 736 773 824
763 812 853 909
832 885 929 991
896 954 1001 1067
958 1019 1070 1140

526
582
636
687
736

600
665
726
784
839

650
719
786
848
908

688 719 762 842 1007
761 795 843 918 1097
831 869 921 990 1182
897 937 993 1057 1261
960 1003 1063 1121 1336

1237 801 913
1371 891 1016
1490 971 1107
1610 1052 1198
1718 1126 1282

987
1098
1196
1295
1385

100,000
120,000
140,000
160,000
180,000

120,000 825 954
140,000 915 1058
160,000 996 1151
180,000 1077 1244
200,000 1151 1329

200,000 or more

1040
1154
1254
1355
1447

266
460
563
653

1106
1227
1333
1441
1539

280
483
591
686

1161
1287
1399
1511
1614

1044
1161
1264
1369
1464

253
443
546
636

1091
1213
1321
1429
1529

269
470
579
674

1156
1285
1399
1514
1619

347
558
666
759

1204
1319
1420
1520
1611

2

7.0000% Missouri

418 466 505 536 581
669 745 805 855 926
797 887 958 1017 1101
908 1010 1090 1156 1251

1435
1570
1689
1807
1914

4.2250% Nebraska

5.5000%

153
252
303
348

179
293
353
405

196
321
386
442

209
343
411
471

220
360
433
495

236
385
462
529

194
337
414
482

223
387
475
553

242
420
515
599

256
445
546
635

525
575
622
665
707

552
604
653
699
742

589
644
696
745
791

544
601
656
707
756

716 749 794
791 827 877
862 902 957
929 972 1031
994 1039 1102

1119
1219
1313
1401
1483

1207
1315
1416
1510
1599

1281
1395
1502
1601
1695

1385
1508
1623
1730
1831

389
426
461
494
526

451
494
535
573
609

493
540
584
625
664

623
689
751
810
866

676
747
814
878
938

1592
1742
1873
2003
2121

1716
1877
2017
2157
2283

1819
1989
2137
2285
2418

1965
2148
2307
2466
2610

567
625
676
726
772

657
723
781
839
891

716 762 800 853 821 940
788 838 879 937 912 1044
851 905 949 1011 992 1135
914 971 1019 1085 1073 1227
971 1032 1082 1152 1146 1311

1019
1131
1230
1329
1420

1079
1197
1302
1407
1503

268
466
571
664

1128
1252
1361
1471
1571

285
494
606
705

1196
1327
1443
1560
1666

1528 1762 1917 2037 2135 2273 1504 1710 1846 1950 2036 2155 2065 2447 2708 2913 3083 3324 1005 1157 1258 1336 1400 1490 1521 1739 1882 1991 2081 2206

(Continued on page A-11)

A-10

Page 11 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2005 Optional State and Certain Local Sales Tax Tables (Continued)
Income
At
least

But
less
than

Exemptions
1

2

3

4

Exemptions
5

Over
5

1

2

3

4
2,4

6.5000% New Jersey

Nevada

3

2

3

4

6.0000% New Mexico

Exemptions
5

Over
5

1

2

3

4

5.0000% New York

Exemptions
5

Over
5

1

2

3

4

4.1034% North Carolina

5

Over
5

4.5000%

246
426
521
605

320
550
673
781

178
314
388
453

202
356
440
514

217
384
474
554

229
405
500
584

239
422
521
609

253
446
551
643

184
321
393
458

213
369
453
527

231
401
492
572

246
426
522
607

257
446
547
636

274
475
582
676

140
246
302
352

163
284
349
406

177
309
380
442

189
329
404
470

198
345
423
493

211
367
451
525

152
262
321
372

179
307
375
435

197
337
412
478

211
361
441
511

222
380
464
538

239
408
497
576

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

592
654
713
768
821

682 742 789 827 880
753 820 871 912 971
821 893 949 994 1057
885 962 1022 1071 1139
946 1028 1092 1144 1216

513
569
622
672
720

582
645
705
761
815

627
694
759
820
878

661
732
800
865
926

689 728
763 806
834 881
901 952
965 1019

516
571
622
671
717

594
656
716
771
824

645
713
777
838
895

685
756
824
888
950

717 762
792 841
863 917
930 988
994 1056

397
439
480
518
554

459
507
553
597
638

499
552
602
650
695

530
586
640
690
738

556
615
671
723
774

592
654
714
770
823

419
463
504
543
580

490
540
589
634
677

537
593
645
695
742

574
633
689
742
792

605
667
726
781
834

648
714
777
835
892

1320 784 888
1463 872 988
1590 951 1077
1717 1030 1167
1833 1103 1249

956
1064
1160
1256
1344

1008
1122
1222
1324
1417

1109 779 895
1234 865 994
1345 941 1080
1457 1017 1168
1559 1087 1247

972
1079
1173
1267
1354

1031
1144
1243
1344
1435

602
669
728
788
842

694 755 802 840 894
771 838 890 933 993
839 912 969 1015 1080
907 987 1048 1098 1168
970 1054 1119 1173 1248

629 734 804 859
698 813 891 951
758 884 968 1033
819 954 1045 1115
875 1018 1115 1189

904
1001
1086
1172
1251

966
1070
1161
1253
1337

200,000 or more

Income

1185
1314
1428
1543
1647

300
517
633
734

1

213
368
451
525

120,000 892 1027 1116
140,000 990 1139 1238
160,000 1077 1239 1346
180,000 1164 1339 1454
200,000 1244 1430 1553

286
493
603
700

Over
5

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

269
464
568
659

Exemptions
5

1241
1376
1496
1616
1725

1050
1169
1274
1380
1476

1079
1197
1302
1406
1502

1146
1272
1382
1494
1595

1651 1895 2056 2180 2282 2423 1473 1668 1795 1892 1971 2081 1441 1653 1793 1900 1988 2111 1119 1288 1400 1486 1557 1655 1158 1346 1472 1569 1649 1762

North Dakota 5.0000% Ohio

5.7500% Oklahoma

4.5000% Pennsylvania

6.0000% Rhode Island2 7.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

163
281
345
401

191
328
402
467

210
360
441
511

225
385
471
546

237
406
496
575

254
435
531
616

204
351
429
497

236
405
495
574

258
441
539
624

306
524
639
740

205
333
399
457

246
398
477
544

274
443
530
604

297
478
571
651

342
549
655
747

176
307
378
440

201
352
432
503

219
381
468
545

232
404
496
578

242
423
519
604

257
449
551
641

201
352
433
504

230
402
494
575

249
435
534
622

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

452
499
545
587
628

526
581
633
682
729

576
635
692
746
797

615
678
739
795
850

647
714
777
837
894

693
764
831
895
955

559
617
672
723
772

645
711
774
833
890

702 746 782 832
774 822 862 917
842 895 938 997
906 962 1009 1073
967 1027 1076 1145

509
556
601
643
683

605
661
714
763
810

672
733
791
846
897

724 767 829
790 837 904
852 903 975
910 964 1041
965 1022 1103

497
549
600
647
692

568
628
686
740
791

616
681
743
801
857

652
721
786
848
907

682 723
754 800
822 872
887 941
948 1006

570
631
689
744
796

650
719
785
847
906

702 743 776 822
777 821 858 909
848 896 936 991
915 967 1010 1069
979 1034 1080 1143

682 791 864
757 877 958
824 954 1042
891 1031 1125
952 1101 1202

922
1022
1110
1199
1280

969
1074
1167
1260
1345

100,000
120,000
140,000
160,000
180,000

120,000
140,000
160,000
180,000
200,000

200,000 or more

Income

1036 838 964 1049
1148 928 1068 1161
1246 1008 1159 1260
1346 1088 1251 1360
1436 1161 1335 1450

274
469
573
663

1113
1232
1337
1443
1539

288
492
600
695

1166
1291
1401
1512
1612

1240
1373
1490
1607
1713

736 872 965 1038
809 957 1058 1138
873 1031 1140 1226
937 1106 1222 1313
995 1174 1296 1392

315
508
606
691

1099
1205
1297
1389
1473

South Carolina

5.0000% South Dakota 4.0000% Tennessee

7.0000% Texas

235
374
445
506

288
456
541
614

378
595
705
799

412
648
768
870

199
320
382
436

240
385
460
523

269
430
513
583

291
466
554
631

310
495
589
670

322
525
629
719

386
627
751
858

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

561
611
658
702
744

680 763 828 883
740 829 900 959
796 892 968 1032
849 951 1031 1099
899 1006 1091 1162

961
1044
1122
1195
1263

484
528
570
608
645

581
633
682
728
771

647
705
760
810
858

699
761
820
875
927

743 804 801
809 876 876
871 943 946
929 1006 1012
984 1065 1074

955
1043
1126
1203
1277

1059
1157
1249
1334
1416

1142
1246
1345
1437
1524

1210
1321
1425
1522
1614

1353
1477
1585
1692
1789

693 829 922
759 907 1009
817 976 1085
875 1044 1160
928 1106 1229

995
1088
1170
1251
1325

1374
1508
1625
1741
1847

1523
1670
1799
1927
2044

1639
1797
1935
2073
2198

1736
1903
2049
2194
2326

120,000 798 964
140,000 874 1054
160,000 940 1133
180,000 1006 1211
200,000 1066 1282

200,000 or more

Income

324
512
608
689

1079
1179
1266
1353
1432

353
557
660
749

1169
1277
1371
1465
1550

1245
1360
1459
1559
1649

1056
1155
1241
1327
1405

337
537
639
726

1142
1249
1342
1435
1519

1156
1270
1369
1469
1558

430 465 494 534
697 752 798 863
835 900 954 1032
953 1027 1089 1177

315
501
595
676

365
578
686
778

397
627
744
844

1307
1426
1539
1643
1742

610
674
736
794
849

704 767 815 854
778 847 900 944
849 924 982 1030
916 997 1059 1110
979 1066 1132 1187

909
1005
1096
1181
1263

558
608
655
699
741

671
730
787
839
888

749 810 861
815 881 937
877 948 1008
935 1010 1073
989 1069 1136

934
1015
1092
1163
1230

1873
2052
2209
2366
2507

923
1025
1115
1206
1289

1158
1285
1398
1512
1615

291
505
621
722

1230
1365
1485
1606
1715

1289
1431
1556
1683
1798

1372 795 953
1523 871 1042
1656 936 1120
1790 1002 1197
1912 1061 1268

1061
1160
1246
1332
1409

342
543
645
732

1146
1253
1345
1437
1521

1218
1330
1428
1526
1614

1319
1440
1546
1651
1746

1366 1637 1824 1972 2096 2272 1190 1415 1570 1691 1792 1935 2009 2376 2626 2822 2985 3214 1713 1972 2143 2275 2384 2535 1358 1617 1795 1935 2052 2218
5
6.0000% Virginia

Vermont

5.0000% Washington

2
6.5000% West Virginia 6.0000% Wisconsin

160
298
376
446

168
278
336
386

196
323
389
446

214
352
424
487

228
375
451
518

240
394
474
543

256
420
505
579

229
395
484
562

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

370
414
457
497
536

415
465
513
558
601

445
498
549
597
644

467
523
576
627
676

485
543
599
652
703

511
571
630
686
739

431
473
512
549
585

498
546
592
634
674

543
595
644
690
734

578
633
685
733
780

606
664
718
769
817

646
707
765
819
870

633 732 798 849 891 949
698 808 880 936 982 1046
761 880 959 1019 1069 1139
820 947 1032 1097 1151 1226
876 1012 1102 1172 1229 1309

589
662
728
794
856

660 707 742 771 811
742 795 835 867 912
816 874 917 953 1003
891 954 1001 1040 1094
959 1027 1079 1121 1179

631
696
753
810
862

728 792 841 882 938 950
802 872 926 970 1032 1053
867 942 1000 1048 1114 1144
932 1012 1074 1126 1197 1236
991 1076 1142 1196 1271 1319

266
458
560
650

1097
1216
1321
1426
1522

291
500
611
709

1195
1324
1438
1552
1657

310
532
650
754

1270
1407
1528
1650
1760

325
559
683
792

1333
1476
1603
1730
1846

347
596
728
844

1419
1572
1706
1842
1965

299
480
573
653

358
574
684
779

399
639
760
865

432
689
820
933

724 864 959 1034
790 941 1045 1126
852 1015 1126 1212
910 1083 1201 1293
964 1147 1272 1369
1036
1135
1222
1308
1386

1232
1348
1450
1552
1644

1365
1494
1606
1718
1819

1470
1607
1728
1848
1956

458 496
731 791
870 940
989 1068

5.0000%

177
308
379
441

203
353
434
505

220
383
470
547

233
406
498
579

244
424
521
606

498
550
600
647
692

570
630
687
741
792

617
682
744
802
857

653
722
787
849
907

683 724
755 800
823 873
887 941
949 1005

1096
1193
1285
1370
1450

1183
1288
1387
1479
1565

1557
1702
1829
1956
2070

1679 752 860 931 986
1836 835 955 1034 1094
1973 909 1039 1124 1190
2109 983 1123 1216 1286
2231 1051 1200 1299 1374

1030
1143
1243
1344
1436

259
450
552
642

1092
1212
1318
1424
1521

1175 1318 1410 1481 1539 1618 1124 1290 1399 1483 1552 1649 1744 2009 2186 2322 2434 2590 1777 2102 2323 2496 2640 2843 1395 1592 1722 1822 1903 2016

Wyoming

4.0000%

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

195
312
372
424

236
377
448
510

264
421
501
569

287
456
542
616

305
485
577
655

50,000 60,000
60,000 70,000
70,000 80,000
80,000 90,000
90,000 100,000

470
513
553
590
625

565
616
663
707
749

631
687
739
788
835

682
742
799
852
902

725 786
789 855
849 920
905 981
958 1038

671 804 896
735 880 979
791 946 1052
847 1012 1125
897 1071 1191

967
1058
1136
1215
1285

200,000 or more

1064
1181
1285
1390
1485

273
475
584
679

4.7500%

282
448
533
606

152
284
357
424

120,000
140,000
160,000
180,000
200,000

6.2500% Utah
232
371
442
503

146
273
344
408

100,000
120,000
140,000
160,000
180,000

1242
1380
1501
1624
1735

325
565
693
806

139
260
327
388

Income

1174
1304
1419
1535
1640

305
530
651
757

130
243
306
363

200,000 or more

1124
1249
1359
1470
1572

250
436
536
624

116
216
273
323

120,000
140,000
160,000
180,000
200,000

1093 865 985 1064
1213 962 1095 1182
1319 1048 1192 1287
1427 1135 1290 1392
1524 1213 1379 1488

293
510
626
728

216
377
464
540

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1030
1144
1244
1345
1437

276
481
591
687

1266 1460 1590 1692 1777 1896 1531 1759 1910 2026 2122 2254 1288 1513 1668 1789 1891 2034 1397 1594 1725 1825 1907 2022 1617 1835 1979 2089 2180 2305

$0 $20,000
20,000 30,000
30,000 40,000
40,000 50,000

100,000
120,000
140,000
160,000
180,000

1186 752 860 931 985
1299 836 955 1033 1094
1398 909 1039 1124 1190
1497 984 1124 1216 1287
1586 1052 1201 1299 1375

264
460
565
658

1028
1123
1206
1289
1364

332
527
626
711

1
2
3
4
5

The California table includes the 1% uniform local sales tax rate in addition to the 6.25% state sales tax rate.
This state does not have a local general sales tax.
The Nevada table includes the 2.25% uniform local sales tax rate in addition to the 4.25% state sales tax rate.
Residents of Salem County, NJ should deduct only half of the amount in the state table.
The state and local general sales taxes are combined in the Virginia table.

1113
1216
1306
1395
1476

1149 1368 1519 1637 1736 1877

A-11

Page 12 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Which Optional Local Sales Tax Table Should I Use?
IF you live in
the state of...

AND you live in...

THEN use
Local Table...

Alaska

Any locality

C

Arizona

Any locality

B

Arkansas

Texarkana

B

California

Los Angeles County

Colorado

Aurora, Greeley, Longmont, or City of Pueblo

B
B
C
A

Arvada, City of Boulder, Fort Collins, Lakewood, Thornton, or Westminster
Boulder County, Pueblo County, or any other
locality
Any locality
Arlington Heights, Aurora, Bloomington, Champaign, Chicago, Cicero, Decatur, Elgin, Evanston, Joliet,
Palatine, Peoria, Schaumburg, Skokie, Springfield, or Waukegan
Any other locality
Any locality
New York City
Any locality

Georgia
Illinois

Louisiana
New York
North Carolina

B
B
A
C
B
C

2005 Optional Local Sales Tax Tables A, B, and C
(Based on a local sales tax rate of 1 percent)
Income

At
least

But
less
than

Local Table A

Local Table B

Exemptions

Exemptions

1

2

3

4

5

Over
5

1

Local Table C
Exemptions

2

3

4

5

Over
5

1

2

3

4

5

Over
5

$0
20,000
30,000
40,000

$20,000
30,000
40,000
50,000

32
54
65
75

37
62
75
86

40
67
81
93

43
71
86
99

45
75
90
103

48
79
96
110

41
66
80
92

48
78
94
108

53
87
104
119

57
93
111
127

60
98
118
134

65
105
126
144

50
80
96
109

60
96
114
130

67
107
127
144

72
115
137
155

77
122
145
165

83
132
157
178

50,000
60,000
70,000
80,000
90,000

60,000
70,000
80,000
90,000
100,000

84
92
100
107
114

96
106
115
123
131

104
115
124
133
142

111
121
132
141
150

116
127
138
148
157

123
135
146
157
167

102
112
121
129
137

120
131
142
152
161

132
145
156
167
177

142
155
167
179
190

149
163
176
189
200

161
175
189
202
215

121
132
142
151
160

144
157
169
180
191

160
174
187
200
211

172
187
202
215
227

182
198
214
228
241

197
214
230
245
260

100,000
120,000
140,000
160,000
180,000

120,000
140,000
160,000
180,000
200,000

124
137
148
159
170

141
156
169
182
194

153
169
183
197
210

162
179
194
208
222

170
187
202
218
232

180
198
214
231
245

148
163
176
189
201

174
191
206
221
235

191
210
226
243
258

204
225
242
260
276

216
237
255
274
290

231
254
273
293
311

172
189
203
217
230

205
224
241
257
273

227
248
266
285
301

244
267
286
306
324

258
282
303
324
343

279
304
327
349
369

222

253

274

289

302

320

260

304

333

356

374

401

295

348

384

413

436

470

200,000 or more

A-12

Page 13 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for
Schedule B,
Interest and
Ordinary
Dividends

Use Schedule B (Form 1040) if any of the following applies.
• You had over $1,500 of taxable interest.
• Any of the Special Rules listed in the instructions for line 1 apply to you.
• You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued
after 1989.
• You had over $1,500 of ordinary dividends.
• You received ordinary dividends as a nominee.
• You had a foreign account or you received a distribution from, or were a grantor of, or
transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and
trusts.

You can list more than one
payer on each entry space for
lines 1 and 5, but be sure to
clearly show the amount paid
next to the payer’s name. Add the separate
amounts paid by the payers listed on an
entry space and enter the total in the
“Amount” column. If you still need more
space, attach separate statements that are
the same size as the printed schedule. Use
the same format as lines 1 and 5, but show
your totals on Schedule B. Be sure to put
your name and social security number
(SSN) on the statements and attach them at
the end of your return.

If you received interest as a
nominee, you must give the actual owner a Form 1099-INT
unless the owner is your
spouse. You must also file a Form 1096 and
a Form 1099-INT with the IRS. For more
details, see the General Instructions for
Forms 1099, 1098, 5498, and W-2G and
the Instructions for Forms 1099-INT and
1099-OID.

TIP

Part I. Interest
Line 1

TIP

Accrued Interest
When you buy bonds between interest payment dates and pay accrued interest to the
seller, this interest is taxable to the seller. If
you received a Form 1099 for interest as a
purchaser of a bond with accrued interest,
follow the rules earlier under Nominees to
see how to report the accrued interest on
Schedule B. But identify the amount to be
subtracted as “Accrued Interest.”

Interest

Tax-Exempt Interest

Report on line 1 all of your taxable interest.
Interest should be shown on your Forms
1099-INT, Forms 1099-OID, or substitute
statements. Include interest from series EE
and I U.S. savings bonds. List each payer’s
name and show the amount.

If you received a Form 1099-INT for
tax-exempt interest, follow the rules earlier
under Nominees to see how to report the
interest on Schedule B. But identify the
amount to be subtracted as “Tax-Exempt
Interest.”

Special Rules

Original Issue Discount (OID)

Seller-Financed Mortgages
If you sold your home or other property and
the buyer used the property as a personal
residence, list first any interest the buyer
paid you on a mortgage or other form of
seller financing. Be sure to show the
buyer’s name, address, and SSN. You must
also let the buyer know your SSN. If you do
not show the buyer’s name, address, and
SSN, or let the buyer know your SSN, you
may have to pay a $50 penalty.

Nominees
If you received a Form 1099-INT that includes interest you received as a nominee
(that is, in your name, but the interest actually belongs to someone else), report the
total on line 1. Do this even if you later
distributed some or all of this income to
others. Under your last entry on line 1, put a
subtotal of all interest listed on line 1. Below this subtotal, enter “Nominee Distribution” and show the total interest you
received as a nominee. Subtract this
amount from the subtotal and enter the result on line 2.

If you are reporting OID in an amount less
than the amount shown on Form
1099-OID, follow the rules earlier under
Nominees to see how to report the OID on
Schedule B. But identify the amount to be
subtracted as “OID Adjustment.”

Amortizable Bond Premium
If you are reducing your interest income on
a bond by the amount of amortizable bond
premium, follow the rules earlier under
Nominees to see how to report the interest
on Schedule B. But identify the amount to
be subtracted as “ABP Adjustment.”

Line 3
Excludable Interest on
Series EE and I U.S. Savings
Bonds Issued After 1989
If, during 2005, you cashed series EE or I
U.S. savings bonds issued after 1989 and
you paid qualified higher education expenses for yourself, your spouse, or your

B-1

dependents, you may be able to exclude
part or all of the interest on those bonds.
See Form 8815 for details.

Part II. Ordinary
Dividends
You may have to file Form
5471 if, in 2005, you were an
officer or director of a foreign
corporation. You may also have
to file Form 5471 if, in 2005, you owned
10% or more of the total (a) value of a
foreign corporation’s stock, or (b) combined voting power of all classes of a foreign corporation’s stock with voting rights.
For details, see Form 5471 and its instructions.

TIP

Line 5
Ordinary Dividends
Report on line 5 all of your ordinary dividends. This amount should be shown in box
1a of your Forms 1099-DIV or substitute
statements. List each payer’s name and
show the amount.

Nominees
If you received a Form 1099-DIV that includes ordinary dividends you received as a
nominee (that is, in your name, but the ordinary dividends actually belong to someone
else), report the total on line 5. Do this even
if you later distributed some or all of this
income to others. Under your last entry on
line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal,
enter “Nominee Distribution” and show the
total ordinary dividends you received as a
nominee. Subtract this amount from the
subtotal and enter the result on line 6.

If you received dividends as a
nominee, you must give the actual owner a Form 1099-DIV
unless the owner is your
spouse. You must also file a Form 1096 and
a Form 1099-DIV with the IRS. For more
details, see the General Instructions for
Forms 1099, 1098, 5498, and W-2G and
the Instructions for Form 1099-DIV.

TIP

Page 14 of 14 of 2005 Instructions for Schedules A & B (Form 1040) 16:01 - 10-NOV-2005
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Part III. Foreign
Accounts and Trusts
Lines 7a and 7b
Foreign Accounts
Line 7a
Check the “Yes” box on line 7a if either (1)
or (2) below applies.
1. You own more than 50% of the stock
in any corporation that owns one or more
foreign bank accounts.
2. At any time during 2005 you had an
interest in or signature or other authority
over a financial account in a foreign country (such as a bank account, securities account, or other financial account).

TIP

For line 7a, item (2) does not
apply to foreign securities held
in a U.S. securities account.

Exceptions. Check the “No” box if any of
the following applies to you.
• The combined value of the accounts
was $10,000 or less during the whole year.
• The accounts were with a U.S. military banking facility operated by a U.S.
financial institution.

• You were an officer or employee of a
commercial bank that is supervised by the
Comptroller of the Currency, the Board of
Governors of the Federal Reserve System,
or the Federal Deposit Insurance Corporation; the account was in your employer’s
name; and you did not have a personal financial interest in the account.
• You were an officer or employee of a
domestic corporation with securities listed
on national securities exchanges or with
assets of more than $1 million and 500 or
more shareholders of record; the account
was in your employer’s name; you did not
have a personal financial interest in the account; and the corporation’s chief financial
officer has given you written notice that the
corporation has filed a current report that
includes the account.
See Form TD F 90-22.1 to find out if
you are considered to have an interest in or
signature or other authority over a financial
account in a foreign country (such as a bank
account, securities account, or other financial account). You can get Form TD F
90-22.1 by visiting the IRS website at
www.irs.gov/pub/irs-pdf/f9022-1.pdf.
If you checked the “Yes” box on line 7a,
file Form TD F 90-22.1 by June 30, 2006,
with the Department of the Treasury at the
address shown on that form. Do not attach
it to Form 1040.

B-2

If you are required to file Form
90-22.1 but do not do so, you
may have to pay a penalty of up
to $10,000 (more in some
cases).

Line 7b
If you checked the “Yes” box on line 7a,
enter the name of the foreign country or
countries in the space provided on line 7b.
Attach a separate statement if you need
more space.

Line 8
Foreign Trusts
If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash
or marketable securities generally is considered to be a distribution. See Form 3520
for details.
If you were the grantor of, or transferor
to, a foreign trust that existed during 2005,
you may have to file Form 3520.