Form 1040 Instructions

1. Write your name, address, and social security number at the top. I would use the address at the top that you want your refund to go to. So if you are going home soon, don't use your Japanese address. If you aren't going home, you can choose where you want your check to go. First years should use the same address as on Form 2350.
2. Do you want $3 of your taxes to go to the presidential campaign fund (used to fund presidential candidates)? Check "Yes" or "No" but it won't affect the amount of your return.
3. Numbers 1-5: Check your filing status. Most of us are single. To be a head of household, you should be single with a child or parent who lives with you.
4. Number 6a: Check the box if your parents aren't claiming you as a dependent (ask them if you just got out of college).
5. Number 6b: Check the box if you are married and filing jointly.
6. Number 6c: Write the names of kids you are taking care of.
7. Number 6d: Add up all the boxes on the right. You will probably have 1 or 0 there.
8. Number 7: Add up all your wages you earned in America from your W-2 forms (plus tips). Then add all your Japanese income from line 17 of form 2555-EZ to this total. Put this total on line 7. (You'll subtract the Japanese income later). For example, you earned 2,350.00 in the U.S. and 16,781.23 in Japan. Put 19131.23 on the line.
9. Number 8a: Add up your total taxable interest from bank accounts/CDs. (Forms 1099-INT) You have to compute this on Schedule B.
10. Number 9a: Add up your total taxable interest from stock dividends. (Forms 1099-DIV) You have to compute this on Schedule B.
11. Number 9b: This is new for 2003. It is part of Bush's tax break on dividends. You can find qualified dividends on line 1b of your 1099-DIVs. Write the total of them here.
12. Number 10: -0- (unless you got a 1099-G)
13. Number 11: -0- (unless you got alimony)
14. Number 12: -0- (unless you were self-employed)
15. Number 13: If you own mutual funds or sold stocks, you will need to fill out this line. If you sold stocks, you have to fill out Schedule D and put the result here. If your only capital gain was from mutual fund distributions and all of your 1099-DIVs don't have an amount in box 2c, 2d, and 2e, then you can total the distributions from box 2a of your 1099-DIVs and write that amount on line 13a and check the box. If you check the box, you have to total all the box 2b's from your 1099-DIVs and write that amount on line 13b.
16. Number 14: -0-
17. Number 15: -0- (unless you converted a retirement plan to an IRA)
18. Number 16: -0- (unless you rolled over an IRA to a Roth IRA)
19. Number 17: -0- (unless you have a partnership in a business)
20. Number 18: -0- (unless you own a farm)
21. Number 19: -0- (unless you received unemployment benefits)
22. Number 20: -0- (unless you received social security disability or retirement benefits)
23. Number 21: On the dotted line, write Form 2555-EZ. On the right, write the amount from line 18 of Form 2555-EZ. Write it with parenthesis, because you are subtracting this amount from your total now. For example, (16,781.23)
24. Number 22: Total lines 7-21, remembering that 21 is negative.

Now you've finished calculating your income. Next you get to see if you can deduct money from this to reduce your taxes.

1. Number 23: If you were a teacher for at least 900 hours during 2003, you can deduct up to $250 of unreimbursed expenses for school supplies that were necessary and ordinary (read the IRS instructions for more details). So if you are a second-year JET and in 2003 you bought paper a school project which you weren't reimbursed for, you can put this amount there, converted to dollars. I haven't seen anything in the tax instructions which says this is limited to teachers working in the U.S., but it might be. 2003 is currently the last scheduled year this benefit will exist.
2. Number 24: Leave blank (unless you contributed to a traditional IRA)
3. Number 25: Leave blank (unless you paid student loan interest in 2003, your parents are not claiming you as a dependent, and you didn't earn too much money last year)
4. Number 26: Leave blank (unless you paid for your tuition last year, your parents are not claiming you as a dependent, and you didn't earn too much money last year, and you aren't claiming an education tax credit)
5. Number 27: Leave blank (unless you moved in 2003 before starting JET). Note that JETs aren't eligible to deduct moving costs associated with coming to Japan.
6. Number 28: Leave blank (unless you were self-employed)
7. Number 29: Leave blank (unless you were self-employed)
8. Number 30: Leave blank (unless you were self-employed)
9. Number 31: Leave blank (unless you were penalized for withdrawing your savings early (should be on Forms 1099-INT and DIV))
10. Number 32: Leave blank (unless you paid alimony)
11. Number 33: Total 23-32 (might be -0- for many people)
12. Number 34: Subtract 33 from 22

Now you know about how much money the government says you earned during the year. Next you will figure out your taxes.

1. Number 35: Copy line 34
2. Number 36a: Write 0 in the box
3. Number 37: Copy the number from the left. If you are single, it is $4,750. If you are married, it is $9,500. If you are a dependent of your parents, fill out a the worksheet on page 34 of the instructions.
4. Number 38: Subtract 37 from 35
5. Number 39: Multiply 3,050 by the number on line 6d
6. Number 40: Subtract 39 from 38
7. Number 41: Determine your tax. If you filed Schedule D, compute your tax on Schedule D. If you filled in box 9b or 13a, then use the worksheet on page 37 to compute your tax. Everyone else will probably use the tax tables starting on page 62 to determine their taxes.
8. Number 42: -0- (unless line 35 is greater than $40,250, in which case you should fill out the worksheet on page 38 to see if you need to pay AMT).
9. Number 43: Add 41 and 42

Now add up your tax credits (most people have 0).

1. Number 44: Leave blank
2. Number 45: Leave blank (unless you have kids, then read instructions)
3. Number 46: Leave blank
4. Number 47: Leave blank (unless you want to file an education credit (must be non-dependent, etc.))
5. Number 48: Leave blank (unless you contributed to a retirement plan in 2003, were not a student, and line 35 is less than $25,000)
6. Number 49: Leave blank (unless you have kids, then see pub. 972)
7. Number 50: Leave blank (unless you adopted)
8. Number 51: Leave blank (unless you got a mortgage credit)
9. Number 52: Leave blank
10. Number 53: Add up lines 44-52

Some last finishing touches...

1. Number 54: Subtract 53 from 43. Do not enter a number less than 0.
2. Number 55: -0- (unless you were self-employed)
3. Number 56: -0- (unless you had unreported tip income)
4. Number 57: -0- (unless you got retirement income)
5. Number 58: -0- (unless you got advance Earned Income Credit payments)
6. Number 59: -0- (unless you had a maid)
7. Number 60: Total 54 to 59
8. Number 61: Total amount withheld for federal taxes on all your W-2s (you already paid this).
9. Number 62: Leave blank (unless you paid estimated taxes)
10. Number 63: Leave blank (except if you have kids and your spouse doesn't work, then MAYBE you can get this credit)
11. Number 64: Leave blank
12. Number 65: Leave blank
13. Number 66: First year JETs who paid something with their extension form 2350 should write the amount they paid here. Everyone else, leave it blank.
14. Number 67: Leave blank
15. Number 68: Total 61 to 67
16. Number 69 or 72: Fill out the appropriate set of lines, depending on whether you owe money or will get a refund. Remember, if you owe money, you must pay by April 15 to avoid penalties and interest.
17. If you are getting a refund, you can get it faster by specifying a bank account for direct deposit.
18. Sign, date, and write your occupation and telephone number to finish your 1040.

You're finished! When you file your return, put this page first, followed by Schedule B, and 2555-EZ.

Now go back to figure out when and where to file your return.

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