Publication 17
Your Federal Income Tax
For Individuals
For Use in Preparing 2001 Returns
All material in this publication may be reprinted freely. A citation to Your Federal Income Tax (2001) would be
appropriate.
The explanations and examples in this publication reflect the interpretation by the Internal Revenue Service (IRS) of:
- Tax laws enacted by Congress
- Treasury regulations, and
- Court Decisions.
However, the information given does not cover every situation and is not intended to replace the law or change its meaning.
This publication covers some subjects on which a court may have made a decision more favorable to taxpayers than the interpretation by the IRS.
Until these differing interpretations are resolved by higher court decisions or in some other way, this publication will continue to present the
interpretations by the IRS.
All taxpayers have important rights when working with the IRS. These rights are described in Your Rights as a Taxpayer in the back of
this publication.
Part 1 - The Income Tax Return
The five chapters in this part provide basic information on the tax system. They take you through the first steps of filling out a tax
return-- such as deciding what your filing status is, how many exemptions you can take, and what form to file. They also discuss recordkeeping
requirements, IRS e-file (electronic filing), certain penalties, and the two methods used to pay tax during the year: withholding and
estimated tax.
Part 2 - Income
The eight chapters in this part discuss many kinds of income. They explain which income is and is not taxed. See Part Three for
information on gains and losses you report on Schedule D (Form 1040) and for information on selling your home.
Part 3 - Gains and Losses
The four chapters in this part discuss investment gains and losses, including how to figure your basis in property. A gain from selling or trading
stocks, bonds, or other investment property may be taxed or it may be tax free, at least in part. A loss may or may not be deductible. These chapters
also discuss gains from selling property you personally use -- including the special rules for selling your home. Nonbusiness casualty and theft
losses are discussed in chapter 27 in Part Five.
Part 4 - Adjustments to Income
The three chapters in this part discuss three of the adjustments to income that you can deduct in figuring your adjusted gross income. These
chapters cover:
- Contributions you make to traditional individual retirement arrangements (IRAs) -- chapter 18,
- Moving expenses you pay -- chapter 19, and
- Alimony you pay -- chapter 20.
Other adjustments to income are discussed in other parts of this publication or in other publications and instructions. They are deductions for:
- Interest paid on student loans -- instructions for Form 1040, line 24, or Form 1040A, line 17,
- Contributions to an Archer MSA-- chapter 23,
- Self-employment tax -- chapter 24,
- Self-employed health insurance -- chapter 23,
- Payments to self-employed SEP, SIMPLE, and qualified plans -- Publication 560, Retirement Plans for Small Business,
- Penalty on early withdrawal of savings -- chapter 8,
- Amortization of the costs of reforestation -- chapter 9 of Publication 535, Business Expenses,
- Contributions to Internal Revenue Code section 501(c)(18) pension plans -- Publication 525, Taxable and Nontaxable
Income,
- Expenses from the rental of personal property -- chapter 13,
- Expenses of fee-basis officials or certain performing artists -- chapter 28,
- Certain required repayments of supplemental unemployment benefits (sub-pay) -- chapter 13,
- Foreign housing deduction -- chapter 4 of Publication 54, Tax Guide for U.S. Citizens and Resident Aliens
Abroad,
- Jury duty pay given to your employer -- chapter 13,
- Part of the cost of qualified clean-fuel vehicle property -- chapter 12 of Publication 535, Business Expenses,
and
- Contributions by certain chaplains to Internal Revenue Code section 403(b) plans-- Publication 517, Social Security and Other
Information for Members of the Clergy and Religious Workers.
Part 5 - Standard Deduction and Itemized Deductions
After you have figured your adjusted gross income, you are ready to subtract the deductions used to figure taxable income. You can subtract either
the standard deduction or itemized deductions. Itemized deductions are deductions for certain expenses that are listed on Schedule A (Form 1040). The
ten chapters in this part discuss the standard deduction, each itemized deduction, and the limit on some of your itemized deductions if your adjusted
gross income exceeds certain amounts. See chapter 21 for the factors to consider when deciding whether to subtract the standard deduction or itemized
deductions.
Part 6 - Figuring Your Taxes and Credits
The eight chapters in this part explain how to figure your tax and how to figure the tax of certain children who have more than $1,500 of
investment income. They also discuss tax credits that, unlike deductions are subtracted directly from your tax and reduce your tax, dollar for dollar.
Chapter 37 discusses the earned income credit and how you may be able to get part of the credit paid to you in advance throughout the year.
Tax Table-1
Tax Table-2
Tax Table-3
Tax Table-4
Tax Table-5
Tax Table-6
Tax Table-7
Tax Table-8
Tax Table-9
Tax Table-10
Tax Table-11
Tax Table-12
Tax Rate Schedule
Order Blank for Forms and Publications
|
