Department of the Treasury
Internal Revenue Service
Publication 967
Cat. No. 22402M
The IRS Will
Figure Your Tax
For use in preparing
2006 Returns
Get forms and other information
faster and easier by:
Internet • www.irs.gov
Introduction
You can have the IRS figure your tax on Form 1040EZ,
Form 1040A, or Form 1040 if you file your return by April
16, 2007, (April 17, 2007, if you live in Maine, Maryland,
Massachusetts, New Hampshire, New York, Vermont, or
the District of Columbia).
If you paid too much, we will send you a refund. If you
did not pay enough, we will send you a bill for the
balance. To avoid interest or the penalty for late pay-
ment, you must pay the bill within 30 days of the date of
the bill or by the due date for your return, whichever is
later.
The IRS will also figure the credit for the elderly or the
disabled and the earned income credit. The IRS will not
figure your credit for federal telephone excise tax paid. If
you are eligible for this credit, you must fill in the applica-
ble line on your return.
The IRS cannot figure your tax if any of the following
apply.
1. You want your refund to be directly deposited in
your accounts.
2. You want any part of your refund applied to your
2007 estimated tax.
3. You had income for the year from sources other
than wages, salaries, tips, interest, dividends, tax-
able social security benefits, unemployment com-
pensation, IRA distributions, pensions, and
annuities.
4. Your taxable income is $100,000 or more.
5. You itemize deductions.
6. You file any of the following forms.
a. Form 2555, Foreign Earned Income.
b. Form 2555-EZ, Foreign Earned Income Exclu-
sion.
c. Form 4137, Social Security and Medicare Tax
on Unreported Tip Income.
d. Form 4970, Tax on Accumulation Distribution of
Trusts.
e. Form 4972, Tax on Lump-Sum Distributions.
f. Form 6198, At-Risk Limitations.
g. Form 6251, Alternative Minimum Tax — Individu-
als.
h. Form 8606, Nondeductible IRAs.
i. Form 8615, Tax for Children Under Age 18 With
Investment Income of More Than $1,700.
j. Form 8814, Parents’ Election To Report Child’s
Interest and Dividends.
k. Form 8839, Qualified Adoption Expenses.
Page 2 Publication 967 (2006)
l. Form 8853, Archer MSAs and Long-Term Care
Insurance Contracts.
m. Form 8889, Health Savings Accounts (HSAs).
n. Form 8915, Qualified Hurricane Retirement Plan
Distributions and Repayments.
Comments and suggestions. We welcome your com-
ments about this publication and your suggestions for
future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
We respond to many letters by telephone. Therefore,
it would be helpful if you would include your daytime
phone number, including the area code, in your corre-
spondence.
You can email us at *taxforms@irs.gov. (The asterisk
must be included in the address.) Please put “Publica-
tions Comment” on the subject line. Although we cannot
respond individually to each email, we do appreciate
your feedback and will consider your comments as we
revise our tax products.
Ordering forms and publications. Visit
www.irs.gov/formspubs to download forms and publica-
tions, call 1-800-829-3676, or write to the address below
and receive a response within 10 business days after
your request is received.
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702 – 8903
Tax questions. If you have a tax question, visit
www.irs.gov or call 1-800-829-1040. We cannot answer
tax questions at either of the addresses listed above.
Form 1040EZ
To have the IRS figure your tax, follow these steps if you
are filing Form 1040EZ.
1. Place your peel-off label on your return. If you do not
have a label, print or type your name and address in the
spaces provided.
Publication 967 (2006) Page 3
2. Enter your social security number in the space pro-
vided. If you are married, enter the social security num-
bers of you and your spouse.
3. Read lines 1 through 9 and complete the lines that
apply to you. Do not complete lines 10 through 13. If you
are filing a joint return, use the space to the left of line 6 to
separately show your taxable income and your spouse’s
taxable income.
Payments. Enter any federal income tax withheld on
line 7. Federal income tax withheld is shown on Form
W-2, box 2.
Earned income credit (EIC). If you can take the
EIC, the IRS can figure it for you. Enter “EIC” in the space
to the left of line 8a. Enter the nontaxable combat pay you
elect to include in earned income on line 8b.
4. Attach copy B of each of your Forms W-2 to your
return.
5. If you want to allow a friend, family member, or any
other person you choose to discuss your 2006 tax return
with the IRS, check the “Yes” box in the “Third party
designee” area on your return. Also, enter the designee’s
name, phone number, and any five digits the designee
chooses as his or her personal identification number
(PIN). If you check the “Yes” box, you, and your spouse if
filing a joint return, are authorizing the IRS to call the
designee to answer any questions that may arise during
the processing of your return.
6. Sign and date your return and enter your occupa-
tion(s). If you are filing a joint return, both you and your
spouse must sign it. Enter your daytime phone number in
the space provided. This may help speed the processing
of your return if we have a question that can be answered
over the phone. If you are filing a joint return, you may
enter either your or your spouse’s daytime phone num-
ber.
7. Mail your return to the Internal Revenue Service
Center for the area where you live. A list of Service
Center addresses is shown in your tax forms package.
Form 1040A
To have the IRS figure your tax, follow these steps if you
are filing Form 1040A.
1. Place your peel-off label on your return. If you do not
have a label, print or type your name and address in the
spaces provided.
Page 4 Publication 967 (2006)
2. Enter your social security number in the space pro-
vided. If you are married, enter the social security num-
bers of you and your spouse even if you file separately.
3. Read lines 1 through 27 and complete the lines that
apply to you. If you are filing a joint return, use the space
to the left of the entry space for line 27 to separately show
your taxable income and your spouse’s taxable income.
The IRS will complete line 28.
4. Read lines 29 through 33, 36, and 38 through 42 and
complete the lines that apply to you. But do not complete
lines 30 and 40a if you want the IRS to figure the credits
on those lines. Also, enter any write-in information that
applies to you to the left of line 43. Do not complete lines
34, 35, 37, and 43 through 48.
Payments. Enter any federal income tax withheld
that is shown on Form W-2, box 2, or the appropriate box
of Form 1099, on line 38. Enter any estimated tax pay-
ments you made on line 39.
Credits. The IRS will also figure the credit for the
elderly or the disabled and the earned income credit.
• Credit for the elderly or the disabled. If you can
take this credit, the IRS will figure it for you. Attach
Schedule 3 (Form 1040A), Credit for the Elderly or
the Disabled for Form 1040A Filers, to your return
and enter “CFE” in the space to the left of line 30
on Form 1040A. Check the appropriate box on
Schedule 3, Part I, for your filing status and age.
Complete Part II and Part III, lines 11 and 13, if
they apply.
• Earned income credit. If you can take this credit,
the IRS will figure it for you. Enter “EIC” to the left
of the entry space for line 40a. Enter the nontax-
able combat pay you elect to include in earned
income on line 40b. If you have a qualifying child,
you must fill in Schedule EIC, Earned Income
Credit, and attach it to your return. If you do not
provide the child’s social security number on
Schedule EIC, line 2, the credit will be reduced or
disallowed unless the child was born and died in
2006.
5. Fill in and attach any schedules and forms asked for
on the lines you completed.
6. Attach copy B of each of your Forms W-2 to your
return. Also attach a copy of any Form 1099-R you
received that has withholding tax in box 4.
7. If you want to allow a friend, family member, or any
other person you choose to discuss your 2006 tax return
with the IRS, check the “Yes” box in the “Third party
Publication 967 (2006) Page 5
designee” area on your return. Also, enter the designee’s
name, phone number, and any five digits the designee
chooses as his or her personal identification number
(PIN). If you check the “Yes” box, you, and your spouse if
filing a joint return, are authorizing the IRS to call the
designee to answer any questions that may arise during
the processing of your return.
8. Sign and date your return and enter your occupa-
tion(s). If you are filing a joint return, both you and your
spouse must sign it. Enter your daytime phone number in
the space provided in the signature area. This may help
speed the processing of your return if we have a question
that can be answered over the phone. If you are filing a
joint return, you may enter either your or your spouse’s
daytime phone number.
9. Mail your return to the Internal Revenue Service
Center for the area where you live. A list of Service
Center addresses is shown in your tax forms package.
Form 1040
To have the IRS figure your tax, follow these steps if you
are filing Form 1040.
1. Place your peel-off label on your return. If you do not
have a label, print or type your name and address in the
spaces provided.
2. Enter your social security number in the space pro-
vided. If you are married, enter the social security num-
bers of you and your spouse even if you file separately.
3. Read lines 1 through 43 and complete the lines that
apply to you. If you are filing a joint return, use the space
under the words “Adjusted Gross Income” on the front of
your return to separately show your taxable income and
your spouse’s taxable income. The IRS will complete line
44.
4. Read lines 45 through 71 and complete the lines that
apply to you, but do not fill in lines 56, 63, and 72. Also,
do not complete lines 57 and 73 through 77. Do not
complete lines 49 and 66a if you want the IRS to figure
the credits on those lines.
Payments. Enter any federal income tax withheld
that is shown on Form W-2, box 2, or the appropriate box
of Form 1099, on line 64. Enter any estimated tax pay-
ments you made on line 65.
Credits. The IRS will also figure the credit for the
elderly or the disabled and the earned income credit.
Page 6 Publication 967 (2006)
• Credit for the elderly or the disabled. If you can
take this credit, the IRS will figure it for you. Attach
Schedule R, Credit for the Elderly or the Disabled,
to your return and enter “CFE” on the dotted line
next to Form 1040, line 49. Check the appropriate
box on Schedule R, Part I, for your filing status and
age. Complete Part II and Part III, lines 11 and 13,
if they apply.
• Earned income credit. If you can take this credit,
the IRS will figure it for you. Enter “EIC” on the
dotted line next to line 66a. Enter the nontaxable
combat pay you elect to include in earned income
on line 66b. If you have a qualifying child, you must
fill in Schedule EIC and attach it to your return. If
you do not provide the child’s social security num-
ber on Schedule EIC, line 2, the credit will be
reduced or disallowed unless the child was born
and died in 2006.
5. Fill in and attach any schedules or forms asked for on
the lines you completed.
6. Attach copy B of each of your Forms W-2 to your
return. Also attach a copy of any Form 1099-R you
received that has withholding tax in box 4.
7. If you want to allow a friend, family member, or any
other person you choose to discuss your 2006 tax return
with the IRS, check the “Yes” box in the “Third Party
Designee” area on your return. Also, enter the desig-
nee’s name, phone number, and any five digits the desig-
nee chooses as his or her personal identification number
(PIN). If you check the “Yes” box, you, and your spouse if
filing a joint return, are authorizing the IRS to call the
designee to answer any questions that may arise during
the processing of your return.
8. Sign and date your return and enter your occupa-
tion(s). If you are filing a joint return, both you and your
spouse must sign it. Enter your daytime phone number in
the space provided in the signature area. This may help
speed the processing of your return if we have a question
that can be answered over the phone. If you are filing a
joint return, you may enter either your or your spouse’s
daytime phone number.
9. Mail your return to the Internal Revenue Service
Center for the area where you live. A list of Service
Center addresses is shown in your tax forms package.
Publication 967 (2006) Page 7