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Bentuk 1040 Jadwal J Instruksi

Instruksi untuk Jadwal J (Form 1040 atau Form 1040-SR), Penghasilan Averaging untuk Petani dan Perikanan

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Department of the Treasury  
Internal Revenue Service  
2023 Instructions for Schedule J  
Use Schedule J (Form 1040) to elect to figure your 2023 income tax by averaging,  
over the previous 3 years (base years), all or part of your 2023 taxable income from  
your trade or business of farming or fishing. This election may give you a lower tax if  
your 2023 income from farming or fishing is high and your taxable income for 1 or  
more of the 3 prior years was low.  
Income  
Averaging for  
Farmers and  
Fishermen  
In order to qualify for this election, you aren't required to have been in the business  
of farming or fishing during any of the base years.  
You may elect to average farming or fishing income even if your filing status wasn't  
the same in the election year and the base years.  
This election doesn't apply when figuring your alternative minimum tax on Form  
6251. Also, you don't have to refigure, because of this election, the tax liability of any  
minor child who was required to use your tax rates in the prior years.  
Section references are to the Internal  
Revenue Code unless otherwise noted.  
applied for Qualifying widow(er) apply  
to Qualifying surviving spouse. We will  
match the term to the year of use  
throughout these instructions.  
the fish harvested, either in whole or in  
part, are intended to enter commerce or  
enter commerce through sale, barter, or  
trade. This includes:  
Future Developments  
For the latest information about devel-  
opments related to Schedule J (Form  
1040) and its instructions, such as legis-  
lation enacted after they were published,  
1. The catching, taking, or harvest-  
ing of fish;  
Definitions  
Farming business. A farming business  
is the trade or business of cultivating  
land or raising or harvesting any agricul-  
tural or horticultural commodity. This  
includes:  
2. The attempted catching, taking,  
or harvesting of fish;  
3. Any other activity that can rea-  
sonably be expected to result in the  
catching, taking, or harvesting of fish;  
General  
1. Operating a nursery or sod farm;  
4. Any operations at sea in support  
of, or in preparation for, any activity de-  
scribed in (1) through (3) above;  
Instructions  
2. Raising or harvesting of trees  
bearing fruits, nuts, or other crops;  
Prior Year Tax Returns  
3. Raising ornamental trees (but not  
evergreen trees that are more than 6  
years old when severed from the roots);  
5. Leasing a fishing vessel, but only  
if the lease payments are (a) based on a  
share of the catch (or a share of the pro-  
ceeds from the sale of the catch) from  
the lessee's use of the vessel in a fishing  
business (not a fixed payment), and (b)  
determined under a written lease entered  
into before the lessee begins any signifi-  
cant fishing activities resulting in the  
catch; and  
You may need copies of your original or  
amended income tax returns for 2020,  
2021, and 2022 to figure your tax on  
Schedule J.  
4. Raising, shearing, feeding, caring  
for, training, and managing animals; and  
If you need copies of your tax re-  
turns, use Form 4506. There is a fee for  
each return requested. See Form 4506  
for the fee amount. If your main home,  
principal place of business, or tax re-  
cords are located in a federally declared  
disaster area, this fee will be waived. If  
you want a free transcript of your tax re-  
turn or account, use Form 4506-T. See  
the Instructions for Form 1040 to find  
out how to get these forms.  
5. Leasing land to a tenant engaged  
in a farming business, but only if the  
lease payments are (a) based on a share  
of the tenant's production (not a fixed  
amount), and (b) determined under a  
written agreement entered into before  
the tenant begins significant activities on  
the land.  
6. Compensation as a crew member  
on a vessel engaged in a fishing busi-  
ness, but only if the compensation is  
based on a share of the catch (or a share  
of the proceeds from the sale of the  
catch).  
A farming business doesn't include:  
Contract harvesting of an agricul-  
tural or horticultural commodity grown  
or raised by someone else, or  
Keep a copy of your 2023 income tax  
return to use for income averaging in  
2024, 2025, or 2026.  
The word “fish” means finfish, mol-  
lusks, crustaceans, and all other forms of  
marine animal and plant life other than  
marine mammals and birds.  
Merely buying or reselling plants  
or animals grown or raised by someone  
else.  
Note. For tax years beginning in  
2022, the filing status “Qualifying wid-  
ow(er)” is called “Qualifying surviving  
spouse.” The rules for the filing status  
have not changed. The same rules that  
A fishing business doesn't include  
any scientific research activity conduc-  
ted by a scientific research vessel.  
Fishing business. A fishing business is  
the trade or business of fishing in which  
J-1  
Cat. No. 25514J  
Sep 28, 2023  
2023 Form 1040, 1040-SR, or  
long-term capital gain over net  
short-term capital loss.  
Additional Information  
1040-NR, line 15, CCF reduction, ex-  
cept to the extent that any earnings  
(without regard to the carryback of any  
net operating or net capital loss) from  
the operation of agreement vessels in the  
fisheries of the United States or in the  
foreign or domestic commerce of the  
United States aren't attributable to your  
fishing business;  
See Pub. 225 and Regulations section  
1.1301-1 for more information.  
Line 2b. Enter on line 2b the portion of  
your elected farm income on line 2a  
treated as a net capital gain. The amount  
you enter on line 2b can't exceed the  
smaller of your total net capital gain or  
the net capital gain attributable to your  
farming or fishing business.  
Specific  
Instructions  
Line 2c. Enter on line 2c the smaller of  
line 2b or the unrecaptured section 1250  
gain attributable to your farming or fish-  
ing business, if any.  
Line 2a  
Elected Farm Income  
Schedule C;  
Schedule D;  
Schedule E, Part II;  
Schedule F;  
Form 4797;  
Form 4835;  
Form 8903, Domestic Production  
To figure your elected farm income, first  
figure your taxable income from farm-  
ing or fishing. This includes all income,  
gains, losses, and deductions attributable  
to your farming or fishing business. If  
you conduct both farming and fishing  
businesses, you must figure your elected  
farm income by combining income,  
gains, losses, and deductions attributable  
to your farming and fishing businesses.  
Line 4  
Figure the tax on the amount on line 3  
using:  
Activities Deduction, but only to the ex-  
tent that deduction is attributable to your  
farming or fishing business; and  
The 2023 Tax Table, Tax Compu-  
tation Worksheet, or Qualified Divi-  
dends and Capital Gain Tax Worksheet  
from the 2023 Instructions for Form  
1040 or the 2023 Instructions for Form  
1040-NR;  
Form 8949.  
Your elected farm income is the  
amount of your taxable income from  
farming or fishing that you elect to in-  
clude on line 2a.  
Elected farm income also includes  
any gain or loss from the sale or other  
disposition of property regularly used in  
your farming or fishing business for a  
substantial period of time. However, if  
such gain or loss is realized after cessa-  
tion of the farming or fishing business,  
the gain or loss is treated as attributable  
to a farming or fishing business only if  
the property is sold within a reasonable  
time after cessation of the farming or  
fishing business. A sale or other disposi-  
tion within 1 year of the cessation is pre-  
sumed to be within a reasonable time.  
The 2023 Foreign Earned Income  
Tax Worksheet from the 2023 Instruc-  
tions for Form 1040; or  
You don't have to include all of  
your taxable income from farm-  
ing or fishing on line 2a. It may  
TIP  
The Schedule D Tax Worksheet in  
the 2023 Instructions for Schedule D.  
be to your advantage to include less  
than the entire amount, depending on  
how the amount you include on line 2a  
affects your tax bracket for the current  
and prior 3 tax years.  
Enter the tax on line 4.  
Line 5  
If you used Schedule J to figure your tax  
for:  
The excess farm loss limitation rules  
don't apply for tax years beginning after  
2017 and before 2029. The excess farm  
loss limitation rules are suspended dur-  
ing those years and replaced by the ex-  
cess business loss limitation rules for tax  
years beginning after 2020 and before  
2029. The at-risk limits and the passive  
activity limits are applied before calcu-  
lating the amount of any excess business  
loss. The amount of any excess business  
loss allocable to your farming or fishing  
business(es) is not used in calculating  
the amount of your elected farm income.  
See generally the Instructions for Sched-  
ule F (Form 1040) and Form 461.  
2022 (that is, you entered the  
amount from the 2022 Schedule J,  
line 23, on your 2022 Form 1040,  
1040-SR, or Form 1040-NR, line 16; or  
on your 2022 Form 1040-X, line 6), en-  
ter on line 5 the amount from your 2022  
Schedule J, line 11;  
Elected farm income doesn't include  
income, gain, or loss from the sale or  
other disposition of land or from the sale  
of development rights, grazing rights,  
and other similar rights.  
2021 but not 2022, enter on line 5  
the amount from your 2021 Schedule J,  
line 15; or  
You should find your income, gains,  
losses, and deductions from farming or  
fishing reported on different tax forms,  
such as:  
2020 but not 2021 or 2022, enter  
on line 5 the amount from your 2020  
Schedule J, line 3.  
2023 Form 1040 or 1040-SR, or  
Form 1040-NR, line 1a, income from  
wages and other compensation you re-  
ceived (a) as a shareholder in an S cor-  
poration engaged in a farming or fishing  
business, or (b) as a crew member on a  
vessel engaged in a fishing business (but  
see Fishing business, earlier);  
If you figured your tax for 2020,  
2021, and 2022 without using Sched-  
ule J, enter on line 5 the taxable income  
from your 2020 tax return (or as previ-  
ously adjusted by the IRS, or corrected  
on an amended return). But if that  
amount is zero or less, complete the  
2020 Taxable Income Worksheet to fig-  
ure the amount to enter on line 5.  
Your elected farm income can't ex-  
ceed your taxable income.  
Lines 2b and 2c  
2023 Schedule 1 (Form 1040),  
line 15, deductible part of self-employ-  
ment tax, but only to the extent that de-  
duction is attributable to your farming or  
fishing business;  
Complete lines 2b and 2c if the amount  
of your elected farm income on line 2a  
includes net capital gain. Net capital  
gain is the excess, if any, of net  
If you didn't file a tax return for  
2020, use the amount you would have  
J-2  
2020 Taxable Income Worksheet—Line 5  
Keep for Your Records  
Complete this worksheet if you didn’t use Schedule J to figure your tax for 2021 and 2022 and your 2020 taxable income was zero or  
less. See the instructions for line 5 before completing this worksheet.  
1. Figure the taxable income from your 2020 tax return (or as previously adjusted) without limiting it to  
zero. If you had an NOL for 2020, don't include any NOL carryovers or carrybacks to 2020. Enter the  
result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.  
2. If there is a loss on your 2020 Schedule D, line 21, add that loss (as a positive  
amount) and your 2020 capital loss carryover to 2021. Subtract from that sum the  
amount of the loss on your 2020 Schedule D, line 16, and enter the result . . . . . . . .  
2.  
3. If you had an NOL for 2020, enter it as a positive amount. Otherwise, enter as a  
positive amount the portion, if any, of the NOL carryovers and carrybacks to 2020  
that weren't used in 2020 and were carried to years after 2020 . . . . . . . . . . . . . . . . .  
3.  
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 5 . . . . . . . . . . . . . . .  
4.  
5.  
reported as your taxable income had you  
been required to file a tax return. Be  
sure to keep all your records for 2020  
for at least 3 years after April 15, 2024  
(or the date you file your 2023 tax re-  
turn, if later).  
Example. A farmer, who is single,  
didn't use income averaging for 2020,  
2021, or 2022. For 2023, the farmer has  
$18,000 of elected farm income on  
Schedule J, line 2a. The taxable income  
on the farmer’s 2020 Form 1040,  
line 15, is $850. However, the farmer  
had a $14,700 NOL for 2021, $9,000 of  
which was remaining to carry to 2020  
after the NOL was carried back to 2019.  
To complete line 1 of the 2020 Taxable  
Income Worksheet, the farmer combines  
the $9,000 NOL deduction with the  
$850 from the farmer’s 2020 Form  
1040, line 15. The result is a negative  
$8,150, the farmer’s 2020 taxable in-  
come, which the farmer enters as a posi-  
tive amount on line 1 of the 2020 Taxa-  
ble Income Worksheet.  
loss deduction reduced the amount of  
the 2021 NOL carryback. As a result,  
only $5,150 ($9,000 – $850 – $3,000 =  
$5,150) was available to carry to 2022  
and later years, as shown on the farmer’s  
2021 Form 1045, Schedule B, line 10.  
The farmer enters the $5,150 on line 3  
of the worksheet, and $8,150 ($5,150  
plus the $3,000 line 2 amount) on line 4.  
The farmer then subtracts the $8,150  
from the $8,150 on line 1 and enters the  
result, $0, on line 5 of the worksheet.  
The farmer enters a $0 on Schedule J,  
line 5. The farmer combines that amount  
with the $6,000 on Schedule J, line 6,  
and enters $6,000 on Schedule J, line 7.  
Instructions for 2020 Taxable  
Income Worksheet  
Line 2. Any net capital loss deduction  
on your 2020 Schedule D, line 21, isn't  
allowed for income averaging purposes  
to the extent it didn't reduce your capital  
loss carryover to 2021. This could hap-  
pen if the taxable income—shown on  
your 2020 Form 1040, line 15, or your  
2020 Form 1040-NR, line 15 (or as pre-  
viously adjusted)—was less than zero.  
Enter on line 2 the amount by which  
your 2020 capital loss carryover to 2021  
(the sum of your short- and long-term  
capital loss carryovers) exceeds the ex-  
cess of the loss on your 2020 Sched-  
ule D, line 16, over the loss on your  
2020 Schedule D, line 21. If you had  
any net operating loss (NOL) carrybacks  
to 2020, be sure you refigured your 2020  
capital loss carryover to 2021.  
Line 8  
If line 7 is zero, enter -0- on line 8. Oth-  
erwise, figure the tax on the amount on  
line 7 using:  
When the farmer filed the 2020 tax  
return, the farmer had a $3,000 net capi-  
tal loss deduction on Schedule D, line 21  
(which was also entered on Form 1040,  
line 7); a $7,000 loss on Schedule D,  
line 16; and a $4,000 capital loss carry-  
over to 2021. However, when the farmer  
carried back the 2021 NOL ($9,000 of  
which was carried to 2020), the farmer  
refigured the 2020 capital loss carryover  
to 2021 as $7,000. The farmer adds the  
$3,000 from Schedule D, line 21, and  
the $7,000 capital loss carryover. The  
farmer subtracts from the $10,000 result  
the $7,000 loss on the Schedule D,  
line 16, and enters $3,000 on line 2 of  
the worksheet.  
The 2020 Tax Rate Schedules be-  
low;  
The 2020 Qualified Dividends and  
Capital Gain Tax Worksheet, later;  
The 2020 Schedule D Tax Work-  
sheet in the 2020 Schedule D instruc-  
tions (but use the 2020 Tax Rate Sched-  
ules below when figuring the tax on  
lines 34 and 36 of the Schedule D Tax  
Worksheet); or  
Line 3. If you had an NOL for 2020,  
enter the amount of that NOL from the  
2020 Form 1045, Schedule A, line 24,  
you filed with Form 1045 or Form  
1040X. If you didn't have an NOL for  
2020, enter the portion, if any, of the  
NOL carryovers and carrybacks to 2020  
that weren't used in 2020 and were car-  
ried to years after 2020.  
The 2020 Foreign Earned Income  
Tax Worksheet, later.  
If your elected farm income includes  
net capital gain, you must use the 2020  
Schedule D Tax Worksheet to figure the  
tax on the amount on line 7. However, if  
you filed Form 2555 for 2020, you must  
first complete the 2020 Foreign Earned  
The farmer had $850 of taxable in-  
come in 2020 that reduced the 2021  
NOL carryback. The $3,000 net capital  
J-3  
Income Tax Worksheet, and then use the  
2020 Schedule D Tax Worksheet to fig-  
ure the tax on the amount on line 3 of  
the Foreign Earned Income Tax Work-  
sheet.  
When completing the Schedule D  
Tax Worksheet, you must allocate 1/3 of  
the amount on Schedule J, line 2b, (and  
1/3 of the amount on line 2c, if any) to  
2020. If for 2020 you had a capital loss  
that resulted in a capital loss carryover  
to 2021, don't reduce the elected farm  
income allocated to 2020 by any part of  
the carryover.  
2020 Tax Rate Schedules—Line 8  
Schedule X—Use if your 2020 filing status was Single.  
Schedule Y-2—Use if your 2020 filing status was Married filing separately.  
If  
Enter on  
Schedule J,  
line 8  
If  
Enter on  
Schedule J,  
line 8  
Schedule J,  
line 7, is:  
Over—  
of the  
Schedule J,  
But  
not  
over—  
But not  
over—  
amount line 7, is:  
over— Over—  
of the amount  
over—  
$0 $9,875  
9,875 40,125  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$0 $9,875  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$987.50  
4,617.50  
+
+
+
+
+
+
9,875  
40,125  
9,875 40,125  
40,125 85,525  
85,525 163,300  
163,300 207,350  
207,350 311,025  
311,025 ..........  
$987.50  
4,617.50  
+
+
+
+
+
+
9,875  
40,125  
40,125 85,525  
85,525 163,300  
163,300 207,350  
207,350 518,400  
518,400 .............  
14,605.50  
33,271.50  
47,376.50  
156,235.00  
85,525  
14,605.50  
33,271.50  
47,367.50  
83,653.75  
85,525  
163,300  
207,350  
518,400  
163,300  
207,350  
311,025  
Schedule Y-1—Use if your 2020 filing status was Married  
filing jointly or Qualifying widow(er).  
Schedule Z—Use if your 2020 filing status was Head of household.  
If  
Enter on  
Schedule J,  
line 8  
If  
Enter on  
Schedule J,  
line 8  
Schedule J,  
line 7, is:  
Over—  
of the  
Schedule J,  
But  
not  
over—  
But not  
over—  
amount line 7, is:  
over— Over—  
of the amount  
over—  
$0 $19,750  
19,750 80,250  
80,250 171,050  
171,050 326,600  
326,600 414,700  
414,700 622,050  
622,050 ............  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$0 $14,100  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
14,100  
$1,975.00  
9,235.00  
+
+
+
+
+
+
19,750  
80,250  
14,100 53,700  
53,700 85,500  
85,500 163,300  
163,300 207,350  
207,350 518,400  
518,400 ...........  
$1,410.00  
6,162.00  
+
+
+
+
+
+
53,700  
29,211.00  
66,543.00  
94,735.00  
167,307.50  
171,050  
326,600  
414,700  
622,050  
13,158.00  
31,830.00  
45,926.00  
154,793.50  
85,500  
163,300  
207,350  
518,400  
J-4  
Keep for Your Records  
2020 Qualified Dividends and Capital Gain Tax Worksheet—Line 8  
Use this worksheet only if both of the following apply.  
Your elected farm income on your 2023 Schedule J, line 2a, doesn't include any net capital gain.  
You (a) entered qualified dividends on your 2020 Form 1040, line 3a, or 2020 Form 1040-NR, line 3a; (b) entered capital gain distributions  
directly on your 2020 Form 1040, line 7, or your 2020 Form 1040-NR, line 7, and weren't required to file Schedule D; or (c) filed Schedule D in  
2020 and you answered “Yes” on lines 17 and 20 of that Schedule D.  
1. Amount from your 2023 Schedule J, line 7. If for 2020 you filed Form 2555, enter the  
amount from line 3 of the 2020 Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . 1.  
2. Amount from your 2020 Form 1040, line 3a* (or your 2020 Form  
1040-NR, line 3a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.  
3. Did you file Schedule D in 2020?*  
Enter the smaller of line 15 or 16 of your 2020  
Schedule D, but don't enter less than -0-.  
Yes.  
. . . .  
3..  
Enter the amount from your 2020 Form 1040,  
line 7, or 2020 Form 1040-NR, line 7.  
No.  
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5. Amount, if any, from your 2019 Form 4952, line 4g . . . . . . . . . . . . . .  
4.  
5.  
6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6.  
7.  
7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
8. Enter one of the following three amounts depending on your  
filing status.  
$40,000 if single or married filing separately.  
$80,000 if married filing jointly or qualifying widow(er).  
$53,600 if head of household.  
. . . . . . . . . . 8.  
9. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
10. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
11. Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . .  
12. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
13. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
15. Enter one of the following amounts depending on your filing status.  
9.  
10.  
11.  
12.  
13.  
14.  
$441,450 if single.  
$248,300 if married filing separately.  
. . . . . . . . . . 15.  
$496,600 if married filing jointly or qualifying widow(er).  
$469,050 if head of household.  
16. Enter the smaller of line 1 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.  
17. Add lines 7 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.  
18. Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.  
19. Enter the smaller of line 14 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.  
20. Multiply line 19 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.  
21. Add lines 11 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.  
22. Subtract line 21 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.  
23. Multiply line 22 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.  
24. Figure the tax on the amount on line 7. Use the 2020 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.  
25. Add lines 20, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.  
26. Figure the tax on the amount on line 1. Use the 2020 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.  
27. Tax. Enter the smaller of line 25 or line 26 here and on your 2023 Schedule J, line 8. If for 2020 you filed Form  
2555, don't enter this amount on Schedule J, line 8. Instead, enter it on line 4 of the 2020 Foreign Earned Income Tax  
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.  
* If for 2020 you filed Form 2555, see the footnote in the 2020 Foreign Earned Income Tax Worksheet before completing this line.  
J-5  
2020 Foreign Earned Income Tax Worksheet—Line 8  
Keep for Your Records  
Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2020 Form 1040 using  
Form 2555. However, if Schedule J, line 7, is zero or less, don't complete this worksheet.  
1. Enter the amount from your 2023 Schedule J, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2a. Enter the amount from your (and your spouse's, if filing jointly) 2020 Form 2555, lines 45 and  
1.  
50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a.  
b. Enter the total amount of any itemized deductions or exclusions you could not claim for 2020  
because they were related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.  
c. Subtract line 2b from line 2a. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
3. Add lines 1 and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
c.  
3.  
4. Figure the tax on the amount on line 3. Use the 2020 Tax Rate Schedules, the 2020 Qualified  
Dividends and Capital Gain Tax Worksheet,* or the 2020 Schedule D Tax Worksheet in the 2020  
Schedule D instructions,* whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.  
5. Figure the tax on the amount on line 2c. Use the 2020 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . .  
5.  
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on  
your 2023 Schedule J, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.  
* Enter the amount from line 3 above on line 1 of the 2020 Qualified Dividends and Capital Gain Tax Worksheet or the 2020 Schedule D Tax  
Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if  
you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,  
subtract the amount from your 2023 Schedule J, line 7, from line 6 of your 2020 Qualified Dividends and Capital Gain Tax Worksheet (line 10  
of your 2020 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.  
If you didn't have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then  
complete lines 5 and 6 above.  
If you had a capital gain excess, complete a second 2020 Qualified Dividends and Capital Gain Tax Worksheet or 2020 Schedule D Tax  
Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5  
and 6 above. These modifications are to be made only for purposes of filling out the 2020 Foreign Earned Income Tax Worksheet above.  
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2020 Qualified Dividends and Capital Gain Tax  
Worksheet or line 9 of your 2020 Schedule D Tax Worksheet by your capital gain excess.  
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2020 Qualified Dividends and Capital Gain Tax  
Worksheet or line 6 of your 2020 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.  
3. Reduce (but not below zero) the amount on your 2020 Schedule D (Form 1040), line 18, by your capital gain excess.  
4. Include your capital gain excess as a loss on line 16 of your 2020 Unrecaptured Section 1250 Gain Worksheet in the 2020 Instructions for  
Schedule D (Form 1040).  
J-6  
loss carryover to 2022. This could hap-  
pen if the taxable income—shown on  
your 2021 Form 1040, 1040-SR, or  
Form 1040-NR, line 15 (or as previously  
adjusted)—was less than zero. Enter on  
line 2 the amount by which your 2021  
capital loss carryover to 2022 (the sum  
of your short- and long-term capital loss  
carryovers) exceeds the excess of the  
loss on your 2021 Schedule D, line 16,  
over the loss on your 2021 Schedule D,  
line 21. If you had any NOL carrybacks  
to 2021, be sure you refigured your 2021  
capital loss carryover to 2022.  
tal loss deduction on Schedule D, line 21  
(which was also entered on Form 1040,  
line 7), and a $7,000 loss on Sched-  
ule D, line 16 (as adjusted). The farmer  
also had a $7,000 capital loss carryover  
to 2022.  
Line 9  
If you used Schedule J to figure your tax  
for:  
2022 (that is, you entered the  
amount from the 2022 Schedule J,  
line 23, on your 2022 Form 1040,  
1040-SR, or Form 1040-NR, line 16; or  
2022 Form 1040-X, line 6), enter on  
line 9 the amount from your 2022  
Schedule J, line 15; or  
The farmer adds the $3,000 from  
Schedule D, line 21, and the $7,000 cap-  
ital loss carryover. The farmer subtracts  
from the $10,000 result the $7,000 loss  
on the Schedule D, line 16, and enters  
$3,000 on line 2 of the worksheet.  
2021 but not 2022, enter on line 9  
the amount from your 2021 Schedule J,  
line 3.  
The farmer enters $14,500 on line 3  
of the worksheet, the 2021 NOL from  
their 2021 Form 1045, Schedule A,  
line 24. Of the $29,900 negative taxable  
income, the $0 deduction for the suspen-  
ded exemptions, the $3,000 capital loss  
deduction, and the farmer’s $12,400  
standard deduction weren’t allowed in  
figuring the NOL. The farmer had a  
$14,500 loss on the 2021 Schedule F, the  
only other item on the farmer’s 2021 tax  
return.  
Line 3. If you had an NOL for 2021,  
enter the amount of that NOL from the  
2021 Form 1045, Schedule A, line 24,  
you filed with Form 1045 or Form  
1040-X. If you didn't have an NOL for  
2021, enter the portion, if any, of the  
NOL carryovers and carrybacks to 2021  
that weren't used in 2021 and were car-  
ried to years after 2021.  
If you figured your tax for both 2021  
and 2022 without using Schedule J, en-  
ter on line 9 the taxable income from  
your 2021 tax return (or as previously  
adjusted by the IRS, or corrected on an  
amended return). But if that amount is  
zero or less, complete the worksheet be-  
low to figure the amount to enter on  
line 9.  
Example. The farmer didn't use in-  
come averaging for 2020, 2021, or 2022.  
The taxable income on the farmer’s  
2021 Form 1040, line 15, is a negative  
$29,900. The deduction for exemptions  
has been suspended. The farmer sub-  
tracts from the $29,900 loss the $0 de-  
duction for the suspended exemptions.  
The result is a negative $29,900, the  
farmer’s 2021 taxable income, which the  
farmer enters as a positive amount on  
line 1 of the 2021 Taxable Income  
Worksheet.  
If you didn't file a tax return for  
2021, use the amount you would have  
reported as your taxable income had you  
been required to file a tax return. Be  
sure to keep all your records for 2021  
until at least 3 years after April 15, 2024  
(or the date you file your 2023 tax re-  
turn, if later).  
The farmer enters $17,500 (the  
$3,000 line 2 amount plus the $14,500  
line 3 amount) on line 4 and $12,400  
(the $29,900 line 1 amount minus the  
$17,500 line 4 amount) on line 5. The  
farmer enters $12,400 as a negative  
amount on Schedule J, line 9. The farm-  
er enters $6,000 on Schedule J, line 10,  
and a negative $6,200 on Schedule J,  
line 11. If the farmer uses Schedule J to  
figure their tax for 2024, the farmer will  
enter the negative $6,200 amount on  
their 2024 Schedule J as the farmer’s  
2021 taxable income for income averag-  
ing purposes.  
Instructions for 2021 Taxable  
Income Worksheet  
Line 2. Any net capital loss deduction  
on your 2021 Schedule D, line 21, isn't  
allowed for income averaging purposes  
to the extent it didn't reduce your capital  
When the farmer filed their 2021 tax  
return, the farmer had a $3,000 net capi-  
J-7  
2021 Taxable Income Worksheet—Line 9  
Keep for Your Records  
Complete this worksheet if you didn’t use Schedule J to figure your tax for 2022 and your 2021 taxable income was zero or less. See  
the instructions above before completing this worksheet.  
1. Figure the taxable income from your 2021 tax return (or as previously adjusted) without limiting it to  
zero. If you had an NOL for 2021, don't include any NOL carryovers or carrybacks to 2021. Enter the  
result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.  
2. If there is a loss on your 2021 Schedule D, line 21, add that loss (as a positive  
amount) and your 2021 capital loss carryover to 2022. Subtract from that sum the  
amount of the loss on your 2021 Schedule D, line 16, and enter the result . . . . . . . .  
2.  
3. If you had an NOL for 2021, enter it as a positive amount. Otherwise, enter as a  
positive amount the portion, if any, of the NOL carryovers and carrybacks to 2021  
that weren't used in 2021 and were carried to years after 2021 . . . . . . . . . . . . . . . . .  
3.  
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 9 . . . . . . . . . . . . . . .  
4.  
5.  
J-8  
Schedule D Tax Worksheet, lines 42 and  
44); or  
to figure the tax on the amount on line 3  
of the Foreign Earned Income Tax  
Worksheet.  
Line 12  
The 2021 Foreign Earned Income  
Tax Worksheet, later.  
If line 11 is zero or less, enter -0- on  
line 12. Otherwise, figure the tax on the  
amount on line 11 using:  
When completing the Schedule D  
Tax Worksheet, you must allocate 1/3 of  
the amount on Schedule J, line 2b, (and  
1/3 of the amount on line 2c, if any) to  
2021. If for 2021 you had a capital loss  
that resulted in a capital loss carryover  
to 2022, don't reduce the elected farm  
income allocated to 2021 by any part of  
the carryover.  
If your elected farm income includes  
net capital gain, you must use the 2021  
Schedule D Tax Worksheet to figure the  
tax on the amount on line 11. However,  
if you filed Form 2555 for 2021, you  
must first complete the 2021 Foreign  
Earned Income Tax Worksheet, and then  
use the 2021 Schedule D Tax Worksheet  
The 2021 Tax Rate Schedules be-  
low;  
The 2021 Qualified Dividends and  
Capital Gain Tax Worksheet, later;  
The 2021 Schedule D Tax Work-  
sheet in the 2021 Schedule D instruc-  
tions (but use the 2021 Tax Rate Sched-  
ules below when figuring the tax on the  
2021 Tax Rate Schedules—Line 12  
Schedule X—Use if your 2021 filing status was Single.  
Schedule Y-2—Use if your 2021 filing status was Married filing separately.  
If  
Enter on  
Schedule J,  
line 12  
If  
Enter on  
Schedule J,  
line 12  
Schedule J,  
line 11, is: But not  
Over—  
of the  
Schedule J,  
amount line 11, is:  
over— Over—  
But not  
over—  
of the amount  
over—  
over—  
$0 $9,950  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$0 $9,950  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
9,950 40,525  
$995.00  
4,664.00  
+
+
+
+
+
+
9,950  
40,525  
9,950 40,525  
40,525 86,375  
86,375 164,925  
164,925 209,425  
209,425 314,150  
314,150 ..........  
$995.00  
4,664.00  
+
+
+
+
+
+
9,950  
40,525  
40,525 86,375  
86,375 164,925  
164,925 209,425  
209,425 523,600  
523,600 .............  
14,751.00  
33,603.00  
47,843.00  
157,804.25  
86,375  
14,751.00  
33,603.00  
47,843.00  
84,496.75  
86,375  
164,925  
209,425  
523,600  
164,925  
209,425  
314,150  
Schedule Y-1—Use if your 2021 filing status was Married  
filing jointly or Qualifying widow(er).  
Schedule Z—Use if your 2021 filing status was Head of household.  
If  
Enter on  
Schedule J,  
line 12  
If  
Enter on  
Schedule J,  
line 12  
Schedule J,  
line 11, is: But not  
Over—  
of the  
Schedule J,  
amount line 11, is:  
over— Over—  
But not  
over—  
of the amount  
over—  
over—  
$0 $19,900  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$0 $14,200  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
14,200  
19,900 81,050  
81,050 172,750  
172,750 329,850  
329,850 418,850  
418,850 628,300  
628,300 ............  
$1,990.00  
9,328.00  
+
+
+
+
+
+
19,900  
81,050  
14,200 54,200  
54,200 86,350  
86,350 164,900  
164,900 209,400  
209,400 523,600  
523,600 ...........  
$1,420.00  
6,220.00  
+
+
+
+
+
+
54,200  
29,502.00  
67,206.00  
95,686.00  
168,993.50  
172,750  
329,850  
418,850  
628,300  
13,293.00  
32,145.00  
46,385.00  
156,355.00  
86,350  
164,900  
209,400  
523,600  
J-9  
Keep for Your Records  
2021 Qualified Dividends and Capital Gain Tax Worksheet—Line 12  
Use this worksheet only if both of the following apply.  
Your elected farm income on your 2023 Schedule J, line 2a, doesn't include any net capital gain.  
You (a) entered qualified dividends on your 2021 Form 1040, 1040-SR, or 1040-NR, line 3a; (b) entered capital gain distributions directly on  
your 2021 Form 1040, 1040-SR, or 1040-NR, line 7, and weren't required to file Schedule D; or (c) filed Schedule D in 2021 and you answered  
Yes” on lines 17 and 20 of that Schedule D.  
1. Amount from your 2023 Schedule J, line 11. If for 2021 you filed Form 2555, enter the  
amount from line 3 of the 2021 Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . 1.  
2. Amount from your 2021 Form 1040, 1040-SR, or 1040-NR,  
line 3a* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.  
3. Did you file Schedule D in 2021?*  
Enter the smaller of line 15 or 16 of your 2021  
Schedule D, but don't enter less than -0-.  
Yes.  
. . . . . 3.  
Enter the amount from your 2021 Form 1040,  
1040-SR, or 1040-NR, line 7.  
No.  
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4.  
5.  
5. Amount, if any, from your 2021 Form 4952, line 4g . . . . . . . . . . .  
6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6.  
7.  
7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
8. Enter one of the following three amounts depending on your  
filing status.  
$40,400 if single or married filing separately.  
$80,800 if married filing jointly or qualifying widow(er).  
$54,100 if head of household.  
. . . . . . . . . . . 8.  
9. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
10. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
11. Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . .  
12. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
13. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
15. Enter one of the following amounts depending on your filing status.  
9.  
10.  
11.  
12.  
13.  
14.  
$445,850 if single.  
$250,800 if married filing separately.  
$501,600 if married filing jointly or qualifying widow(er).  
$473,750 if head of household.  
. . . . . . . . . . . 15.  
16. Enter the smaller of line 1 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.  
17. Add lines 7 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.  
18. Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.  
19. Enter the smaller of line 14 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.  
20. Multiply line 19 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20.  
21. Add lines 11 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.  
22. Subtract line 21 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.  
23. Multiply line 22 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23.  
24. Figure the tax on the amount on line 7. Use the 2021 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24.  
25. Add lines 20, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25.  
26. Figure the tax on the amount on line 1. Use the 2021 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26.  
27. Tax. Enter the smaller of line 25 or line 26 here and on your 2023 Schedule J, line 12. If for 2021 you filed Form  
2555, don't enter this amount on Schedule J, line 12. Instead, enter it on line 4 of the 2021 Foreign Earned Income  
Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27.  
* If for 2021 you filed Form 2555, see the footnote in the 2021 Foreign Earned Income Tax Worksheet before completing this line.  
J-10  
2021 Foreign Earned Income Tax Worksheet—Line 12  
Keep for Your Records  
Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2021 Form 1040 or  
1040-SR using Form 2555. However, if Schedule J, line 11, is zero or less, don't complete this worksheet.  
1. Enter the amount from your 2023 Schedule J, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2a. Enter the amount from your (and your spouse's, if filing jointly) 2021 Form 2555, lines 45 and  
1.  
50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a.  
b. Enter the total amount of any itemized deductions or exclusions you could not claim for 2021  
because they were related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.  
c. Subtract line 2b from line 2a. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
c.  
3.  
3. Add lines 1 and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4. Figure the tax on the amount on line 3. Use the 2021 Tax Rate Schedules, the 2021 Qualified  
Dividends and Capital Gain Tax Worksheet,* or the 2021 Schedule D Tax Worksheet in the 2021  
Schedule D instructions,* whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.  
5. Figure the tax on the amount on line 2c. Use the 2021 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . .  
5.  
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on  
your 2023 Schedule J, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.  
* Enter the amount from line 3 above on line 1 of the 2021 Qualified Dividends and Capital Gain Tax Worksheet or the 2021 Schedule D Tax  
Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if  
you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,  
subtract the amount from your 2023 Schedule J, line 11, from line 6 of your 2021 Qualified Dividends and Capital Gain Tax Worksheet (line 10  
of your 2021 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.  
If you didn't have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then  
complete lines 5 and 6 above.  
If you had a capital gain excess, complete a second 2021 Qualified Dividends and Capital Gain Tax Worksheet or 2021 Schedule D Tax  
Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5  
and 6 above. These modifications are to be made only for purposes of filling out the 2021 Foreign Earned Income Tax Worksheet above.  
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2021 Qualified Dividends and Capital Gain Tax  
Worksheet or line 9 of your 2021 Schedule D Tax Worksheet by your capital gain excess.  
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2021 Qualified Dividends and Capital Gain Tax  
Worksheet or line 6 of your 2021 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.  
3. Reduce (but not below zero) the amount on your 2021 Schedule D (Form 1040), line 18, by your capital gain excess.  
4. Include your capital gain excess as a loss on line 16 of your 2021 Unrecaptured Section 1250 Gain Worksheet in the 2021 Instructions for  
Schedule D (Form 1040).  
J-11  
if you could have entered a negative  
amount on that line. Enter on line 2 the  
amount by which your 2022 capital loss  
carryover to 2023 (the sum of your  
short- and long-term capital loss carry-  
overs) exceeds the excess of the loss on  
your 2022 Schedule D, line 16, over the  
loss on your 2022 Schedule D, line 21.  
tal loss deduction on Schedule D, line 21  
(which was also entered on Form 1040,  
line 7); a $7,000 loss on Schedule D,  
line 16; and a $5,000 capital loss carry-  
over to 2023 (the farmer’s 2022 capital  
loss carryover to 2023 was $5,000, not  
$4,000, because the amount on the Form  
1040, line 15, would have been a nega-  
tive $1,000 if the farmer could have en-  
tered a negative number on that line).  
The farmer adds the $3,000 from Sched-  
ule D, line 21, and the $5,000 carryover.  
The farmer subtracts from the $8,000 re-  
sult the $7,000 loss on the Schedule D,  
line 16, and enters $1,000 on line 2 of  
the worksheet.  
Line 13  
If you used Schedule J to figure your tax  
for 2022 (that is, you entered the amount  
from the 2022 Schedule J, line 23, on  
your 2022 Form 1040, 1040-SR, or  
1040-NR, line 16; or on Form 1040-X,  
line 6, for 2022), enter on line 13 the  
amount from your 2022 Schedule J,  
line 3.  
Line 3. If you had an NOL for 2022,  
enter the amount of that NOL from the  
2022 Form 1045, Schedule A, line 24,  
you filed with Form 1045 or Form  
1040-X. If you didn't have an NOL for  
2022, enter the portion, if any, of the  
NOL carryovers and carrybacks to 2022  
that weren't used in 2022 and were car-  
ried to years after 2022.  
If you didn't use Schedule J to figure  
your tax for 2022, enter on line 13 the  
taxable income from your 2022 tax re-  
turn (or as previously adjusted by the  
IRS, or corrected on an amended return).  
But if that amount is zero or less, com-  
plete the worksheet below to figure the  
amount to enter on line 13.  
The farmer enters -0- on line 3 of the  
worksheet because the farmer doesn't  
have an NOL for 2022 and didn't have  
an NOL carryover from 2022 available  
to carry to 2023 and later years. The  
NOL deduction for 2022 of $5,150 was  
reduced to zero because it didn't exceed  
the farmer’s modified taxable income of  
$7,150. Modified taxable income is fig-  
ured by adding back the $3,000 net capi-  
tal loss deduction to taxable income (fig-  
ured without regard to the NOL deduc-  
tion) of $4,150. The farmer enters  
$1,000 on line 4 and $0 on line 5 of the  
worksheet. The farmer enters $0 on  
Schedule J, line 13. The farmer enters  
$6,000 on Schedule J, line 14, and  
$6,000 on Schedule J, line 15. If the  
farmer uses Schedule J to figure the  
farmer’s tax for 2024, the farmer will  
enter $6,000 on the farmer’s 2024  
Schedule J as the 2022 taxable income  
for income averaging purposes.  
Example. The farmer didn't use in-  
come averaging for 2020, 2021, or 2022.  
The taxable income on the farmer’s  
2022 Form 1040, line 15, would have  
been a negative $1,000 if the farmer  
could have entered a negative number  
on that line. This amount includes an  
NOL deduction on the farmer’s 2022  
Schedule 1 (Form 1040), line 8a, of  
$5,150. The $5,150 is the portion of the  
2021 NOL that was remaining from  
2020 to be carried to 2022. See the ex-  
amples earlier. The farmer’s taxable in-  
come is limited to zero and the farmer  
doesn’t have an NOL for 2022. The re-  
sult is a negative $1,000, the farmer’s  
2022 taxable income, which the farmer  
enters as a positive amount on line 1 of  
the 2022 Taxable Income Worksheet.  
If you didn't file a tax return for  
2022, use the amount you would have  
reported as your taxable income had you  
been required to file a tax return. Be  
sure to keep all your records for 2022  
until at least 3 years after April 15, 2024  
(or the date you file your 2023 tax re-  
turn, if later).  
Instructions for 2022 Taxable  
Income Worksheet  
Line 2. Any net capital loss deduction  
on your 2022 Schedule D, line 21, isn't  
allowed for income averaging purposes  
to the extent it didn't reduce your capital  
loss carryover to 2023. This could hap-  
pen if the taxable income—shown on  
your 2022 Form 1040, 1040-SR, or  
1040-NR, line 15 (or as previously ad-  
justed)—would have been less than zero  
When the farmer filed the 2022 tax  
return, the farmer had a $3,000 net capi-  
2022 Taxable Income Worksheet—Line 13  
Keep for Your Records  
Complete this worksheet if your 2022 taxable income was zero or less. See the instructions above before completing this worksheet.  
1. Figure the taxable income from your 2022 tax return (or as previously adjusted) without limiting it to  
zero. If you had an NOL for 2022, don't include any NOL carryovers or carrybacks to 2022. Enter the  
result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.  
2. If there is a loss on your 2022 Schedule D, line 21, add that loss (as a positive  
amount) and your 2022 capital loss carryover to 2023. Subtract from that sum the  
amount of the loss on your 2022 Schedule D, line 16, and enter the result . . . . . . . .  
2.  
3. If you had an NOL for 2022, enter it as a positive amount. Otherwise, enter as a  
positive amount the portion, if any, of the NOL carryovers and carrybacks to 2022  
that weren't used in 2022 and were carried to years after 2022 . . . . . . . . . . . . . . . . .  
3.  
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 13 . . . . . . . . . . . . . .  
4.  
5.  
J-12  
ule D Tax Worksheet, lines 44 and 46);  
or  
to figure the tax on the amount on line 3  
of the Foreign Earned Income Tax  
Worksheet.  
Line 16  
The 2022 Foreign Earned Income  
Tax Worksheet, later.  
If line 15 is zero or less, enter -0- on  
line 16. Otherwise, figure the tax on the  
amount on line 15 using:  
When completing the Schedule D  
Tax Worksheet, you must allocate 1/3 of  
the amount on Schedule J, line 2b, (and  
1/3 of the amount on line 2c, if any) to  
2022. If for 2022 you had a capital loss  
that resulted in a capital loss carryover  
to 2023, don't reduce the elected farm  
income allocated to 2022 by any part of  
the carryover.  
If your elected farm income includes  
net capital gain, you must use the 2022  
Schedule D Tax Worksheet to figure the  
tax on the amount on line 15. However,  
if you filed Form 2555 for 2022, you  
must first complete the 2022 Foreign  
Earned Income Tax Worksheet and then  
use the 2022 Schedule D Tax Worksheet  
The 2022 Tax Rate Schedules be-  
low;  
The 2022 Qualified Dividends and  
Capital Gain Tax Worksheet, later;  
The 2022 Schedule D Tax Work-  
sheet in the 2022 Schedule D instruc-  
tions (but use the 2022 Tax Rate Sched-  
ules when figuring the tax on the Sched-  
2022 Tax Rate Schedules—Line 16  
Schedule X—Use if your 2022 filing status was Single.  
Schedule Y-2—Use if your 2022 filing status was Married filing separately.  
If  
Enter on  
Schedule J,  
line 16  
If  
Enter on  
Schedule J,  
line 16  
Schedule J,  
line 15, is: But not  
of the  
Schedule J,  
But  
not  
amount line 15, is:  
of the amount  
over—  
Over—  
over—  
over— Over—  
over—  
$0 $10,275  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$0 $10,275  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
10,275 41,775  
41,775 89,075  
89,075 170,050  
170,050 215,950  
215,950 539,900  
539,900 .............  
$1,075.50  
4,807.50  
+
+
+
+
+
+
10,275  
41,775  
10,275 41,775  
41,775 89,075  
89,075 170,050  
170,050 215,950  
215,950 323,925  
323,925 ..........  
$1,027.50  
4,807.50  
+
+
+
+
+
+
10,275  
41,775  
15,213.50  
34,647.50  
49,335.50  
162,718.00  
89,075  
15,213.50  
34,647.50  
49,335.50  
87,126.75  
89,075  
170,050  
215,950  
539,900  
170,050  
215,950  
323,925  
Schedule Y-1—Use if your 2022 filing status was Married  
filing jointly or Qualifying surviving spouse.  
Schedule Z—Use if your 2022 filing status was Head of household.  
If  
Enter on  
Schedule J,  
line 16  
If  
Enter on  
Schedule J,  
line 16  
Schedule J,  
line 15, is: But not  
of the  
Schedule J,  
But  
not  
amount line 15, is:  
of the amount  
over—  
Over—  
over—  
over— Over—  
over—  
$0 $20,550  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
$0 $14,650  
...........  
10%  
12%  
22%  
24%  
32%  
35%  
37%  
$0  
14,650  
20,550 83,550  
83,550 178,150  
178,150 340,100  
340,100 431,900  
431,900 647,850  
647,850 ............  
$2,055.00  
9,615.00  
+
+
+
+
+
+
20,550  
83,550  
14,650 55,900  
55,900 89,050  
89,050 170,050  
170,050 215,950  
215,950 539,900  
539,900 ...........  
$1,465.00  
6,415.00  
+
+
+
+
+
+
55,900  
30,427.00  
69,295.00  
98,671.00  
174,253.50  
178,150  
340,100  
431,900  
647,850  
13,708.00  
33,148.00  
47,836.00  
161,218.50  
89,050  
170,050  
215,950  
539,900  
J-13  
Keep for Your Records  
2022 Qualified Dividends and Capital Gain Tax Worksheet—Line 16  
Use this worksheet only if both of the following apply.  
Your elected farm income on your 2023 Schedule J, line 2a, doesn't include any net capital gain.  
You (a) entered qualified dividends on your 2022 Form 1040, 1040-SR, or 1040-NR, line 3a; (b) entered capital gain distributions directly on  
your 2022 Form 1040, 1040-SR, or 1040-NR, line 7, and weren't required to file Schedule D; or (c) filed Schedule D in 2022 and you answered  
Yes” on lines 17 and 20 of that Schedule D.  
1. Amount from your 2023 Schedule J, line 15. If for 2022 you filed Form 2555, enter the  
amount from line 3 of the 2022 Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . 1.  
2. Amount from your 2022 Form 1040, 1040-SR, or 1040-NR,  
line 3a* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.  
3. Did you file Schedule D in 2022?*  
Enter the smaller of line 15 or 16 of your 2022  
Schedule D, but don't enter less than -0-.  
Yes.  
3.  
. . . . .  
Enter the amount from your 2022 Form 1040,  
1040-SR, or 1040-NR, line 7.  
No.  
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5. Amount, if any, from your 2022 Form 4952, line 4g . . . . . . . . . . . . .  
4.  
5.  
6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6.  
7.  
7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
8. Enter one of the following three amounts depending on your  
filing status.  
$41,675 if single or married filing separately.  
$83,350 if married filing jointly or qualifying surviving spouse.  
$55,800 if head of household.  
. . . . . . . . . . 8.  
9. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
10. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
11. Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . .  
12. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
13. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
15. Enter one of the following amounts depending on your filing status.  
9.  
10.  
11.  
12.  
13.  
14.  
$459,750 if single.  
$258,600 if married filing separately.  
. . . . . . . . . . 15.  
$517,200 if married filing jointly or qualifying surviving spouse.  
$488,500 if head of household.  
16. Enter the smaller of line 1 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.  
17. Add lines 7 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.  
18. Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.  
19. Enter the smaller of line 14 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.  
20. Multiply line 19 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.  
21. Add lines 11 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.  
22. Subtract line 21 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.  
23. Multiply line 22 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.  
24. Figure the tax on the amount on line 7. Use the 2022 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.  
25. Add lines 20, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.  
26. Figure the tax on the amount on line 1. Use the 2022 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.  
27. Tax. Enter the smaller of line 25 or line 26 here and on your 2023 Schedule J, line 16. If for 2022 you filed Form  
2555, don't enter this amount on Schedule J, line 16. Instead, enter it on line 4 of the 2022 Foreign Earned Income  
Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.  
* If for 2022 you filed Form 2555, see the footnote in the 2022 Foreign Earned Income Tax Worksheet before completing this line.  
J-14  
2022 Foreign Earned Income Tax Worksheet—Line 16  
Keep for Your Records  
Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2022 Form 1040 or  
1040-SR using Form 2555. However, if Schedule J, line 15, is zero or less, don't complete this worksheet.  
1. Enter the amount from your 2023 Schedule J, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2a. Enter the amount from your (and your spouse's, if filing jointly) 2022 Form 2555, lines 45 and  
1.  
50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a.  
b. Enter the total amount of any itemized deductions or exclusions you could not claim for 2022  
because they were related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.  
c. Subtract line 2b from line 2a. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
c.  
3.  
3. Add lines 1 and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4. Figure the tax on the amount on line 3. Use the 2022 Tax Rate Schedules, the 2022 Qualified  
Dividends and Capital Gain Tax Worksheet,* or the 2022 Schedule D Tax Worksheet in the 2022  
Schedule D instructions,* whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.  
5. Figure the tax on the amount on line 2c. Use the 2022 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . .  
5.  
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on  
your 2023 Schedule J, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.  
* Enter the amount from line 3 above on line 1 of the 2022 Qualified Dividends and Capital Gain Tax Worksheet or the 2022 Schedule D Tax  
Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if  
you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,  
subtract the amount from your 2023 Schedule J, line 15, from line 6 of your 2022 Qualified Dividends and Capital Gain Tax Worksheet (line 10  
of your 2022 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.  
If you didn't have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then  
complete lines 5 and 6 above.  
If you had a capital gain excess, complete a second 2022 Qualified Dividends and Capital Gain Tax Worksheet or 2022 Schedule D Tax  
Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5  
and 6 above. These modifications are to be made only for purposes of filling out the 2022 Foreign Earned Income Tax Worksheet above.  
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2022 Qualified Dividends and Capital Gain Tax  
Worksheet or line 9 of your 2022 Schedule D Tax Worksheet by your capital gain excess.  
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2022 Qualified Dividends and Capital Gain Tax  
Worksheet or line 6 of your 2022 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.  
3. Reduce (but not below zero) the amount on your 2022 Schedule D (Form 1040), line 18, by your capital gain excess.  
4. Include your capital gain excess as a loss on line 16 of your 2022 Unrecaptured Section 1250 Gain Worksheet in the 2022 Instructions for  
Schedule D (Form 1040).  
4972; amounts from the recapture of an  
education credit; or a repayment amount  
for any excess of advance monthly pay-  
ments of the health coverage tax credit.  
If you amended your return or the  
IRS made changes to it, make sure you  
enter the corrected amount.  
Lines 19, 20, and 21  
For example, your “tax” line may, in ad-  
dition to the tax imposed by section 1,  
include amounts from Form 8814 or  
J-15