D 40 Form – Fill Out and Use This PDF

D-40EZ

D-40

Single and Joint Filers with No Dependents

All other Individual Income Tax Filers

INSIDE

Contents

Chief Financial Officer's Letter 3

What's New 5

General Instructions for the D-40EZ and D-40 Who must file a DC income tax return? 7 Which form should you file? 7

When are your taxes due? 7 Filing your return 8

DCfreefile (fillable forms) 8

DCfreefile 8

Payment options 8 Penalties and interest 9 Direct deposit of refund 17 Refund status inquiry 18

Instructions for the D-40EZ 22, 24 Instructions for the D-40 25-31

Forms

D-40EZ form 21, 23

D-40 form and schedules 33-63

D-40WH, Withholding Tax Schedule

Schedule S, Supplemental Information and Dependents Schedule H, Homeowner and Renter Property Tax Credit Schedule U, Additional Miscellaneous Credits and Contributions Schedule I, Additions to and Subtractions from Federal Adjusted Gross Income

Schedule N, DC Non-Custodial Parent EITC Claim

Schedule ELC, Early Learning Tax Credit

DC-8379, Injured Spouse Allocation

D-2210, Underpayment of Estimated Income Tax by Individuals D-40P, Payment Voucher (All filers)

FR-127, Extension of Time to File a DC Income Tax Return (All filers)

Tax tables and ads

Tax tables for taxable income of $100,000 or less 65-74 DC College Savings Plan 75

Need assistance? Back Cover

General Instructions for D-40EZ/D-40

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Who must file a DC Income tax return?

You must file a 2018 DC Individual Income tax return if:

•You were a District of Columbia (DC) resident in 2018 and were required to file a federal income tax return. (A resident is an individual whose permanent legal residence is within the District during the taxable year);

•You maintained a place of residence in DC for a total of 183 days or more during 2018 even if your permanent residence was outside DC (see instructions for part-year residents, page 27);

•You were a member of the United States (US) armed forces and DC was your legal residence for tax purposes for all or part of 2018.

•If you want to receive a refund of DC taxes withheld during the year, or if you qualify for and want to receive the following refundable credits:

o The DC Earned Income Credit;

o Schedule N, Non-Custodial Parent Earned Income Credit;

o Schedule H, Homeowner and Renter Property Tax Credit; or o Schedule ELC, Early Learning Tax Credit.

Note: If you are the spouse/registered domestic partner of someone not required to file, such as a non-resident Congressional appointee, and you meet any of the above requirements, you yourself must file.

You do not need to file a 2018 DC Individual Income tax return if:

•You were not required to file a 2018 federal income tax return;

•You were not considered a resident of DC during 2018;

•You were an elected member of the US government who was not domiciled in DC;

•You were an employee on the personal staff of an elected member of the US Congress and you and the elected member were bona fide residents of the same state;

•You were a member of the US Executive Branch appointed by the President, subject to US Senate confirmation, whose tenure of office is at the pleasure of the President and you were not domiciled in DC during any part of 2018; or

•You were a justice of the US Supreme Court and were not domi-

ciled in DC during any part of 2018.

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Which form should you file?

D-40EZ Income Tax Return for Single and Joint Filers with

No Dependents

You may use this simpler form if you meet all of the following:

•Your filing status is single, married/registered domestic partners filing jointly, or a dependent claimed by someone else. (Domestic partners are registered with the Vital Records Division of the DC Department of Health);

•You were a DC resident from January 1 through December 31, 2018;

•Your taxable income is $100,000 or less and consists only of wages, salaries and tips; taxable scholarships or fellowship grants; unemployment compensation; and/or interest and dividends ($1500 maximum);

•You did not make estimated income tax payments;

•You do not claim dependents;

•You do not claim the additional standard deduction for being age 65 or older or legally blind;

•You have no federal adjustments to income;

•You do not itemize deductions;

•You do not claim any of the credits or deductions on DC Schedules S, H, U, I, N or ELC;

•You do not claim a deduction for a payment to the DC college savings plan;

•You do not claim "Injured Spouse Protection";

•You do not file on behalf of a deceased taxpayer;

•If claiming EITC without children; and

•You are not claiming the DC EITC with children or as a non- custodial parent.

D-40 Individual Tax Return

Use this form if you cannot use the D-40EZ.

D-40WH Withholding Tax Schedule

Unless you are filing electronically, use this form to report DC taxes withheld. Copy the information from your Forms W-2 and 1099 for DC income taxes withheld into the spaces provided. Attach the Forms W-2 and 1099 to your D-40 or D-40EZ return and submit the D-40WH with your return.

Unless you are filing electronically, you must file the D-40WH in order to receive credit for DC taxes withheld.

D-40B Nonresident Request for Refund

If you were not a DC resident and you had DC taxes withheld, file Form D-40B, Nonresident Request for Refund.

D-41 Fiduciary Income Tax Return

Use the D-41 if you are the fiduciary of a DC estate or trust and the gross income for the trust is $100 or more for the year.

FR-329 Consumer Use Tax on Purchases and Rentals

You should file this form if during the tax year you paid a total of more than $400 for merchandise, services, or rentals on which you did not pay sales tax. Typically you do not pay sales tax on (a) mer- chandise you ordered through catalogs; (b) merchandise shipped to DC that you bought or rented outside of DC; and (c) merchandise

taxed in DC but not in the state where purchased.

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When are your taxes due?

April 15, 2019 is the deadline for filing your return and paying any taxes due. If the due date falls on a Saturday, Sunday, or legal holiday, the return is timely if filed on the next business day.

FR-127 Extension of Time to File a DC Income Tax Return

An extension of time to file of six months may be granted if a valid extension of time to file is requested. In order to be valid, an FR-127 Extension of Time to File form is due by April 15, 2019. If the due date falls on a Saturday, Sunday, or legal holiday, the request for extension of time is timely if filed on the next business day. The submission of the extension of time to file is subject to the following considerations:

1.If you expect to have a balance due when you file your D-40, you must pay with your timely filed extension. Penalty and interest charges are imposed on any tax found owing and not paid on time with the extension request.

2.If you do not expect to have a balance due when you file your D-40, you would not be required to file a Form FR-127, if you have:

a.Reasonably estimated your D-40 tax liability and paid the estimated amount of DC income taxes through withholding or estimated tax payment; and

b.Filed a request to extend the time to file your federal indi- vidual income tax return with the IRS. The timely filed federal extension to file form will satisfy the requirement for filing a Form FR-127 with DC.

3.If you do not expect to have a balance due and you have not filed an extension of time to file for your federal individual income tax return and wish to request an extension for your DC income tax return, you should submit a Form FR-127.

7

Additional extensions.

In addition to the 6-month extension, you may receive an additional 6-month extension if you are living or traveling outside the U.S. You must file for the first 6-month extension by the April 15, 2019 deadline before applying for the additional extension of time to file. The Office of Tax and Revenue (OTR) will grant members of the US Armed Forces who are serving in designated Combat Zones an extension of up to an additional 6 months to file their District income taxes, as well as pay any amounts that are due. During this period of extension, assessment and collection deadlines are extended and no penalty and interest will be charged. The extension also applies to spouses, whether they file joint or separate returns.

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Filing your return

This booklet has all the forms and instructions you will need. You are responsible for filing and paying taxes on time whether or not you receive the printed forms.

•Substitute forms

You may file your DC tax return using a computer-prepared or computer-generated substitute form, provided the form is approved in advance by the Office of Tax and Revenue (OTR). The fact that a software package is available for retail purchase does not mean that the substitute form has been approved for use. Call or check with the software developer to determine if their form is a DC OTR approved form.

•By mail

•If mailing a return with a payment, send it to: Office of Tax and Revenue

PO Box 96169

Washington, DC 20090-6169

•If mailing a refund request return or a 'no money due' return, send it to:

Office of Tax and Revenue PO Box 96145 Washington, DC 20090-6145

There are two adhesive mailing labels on the back flap of your return envelope. If you are sending a payment with your return, use the PO Box 96169 mailing label on your return envelope.

If you are filing a no money due or a refund request return, use the PO Box 96145 mail label on your return envelope.

Do not include more than one return per envelope.

•By DC electronic filing (e-File)

e-File offers most DC individual income taxpayers a full federal/ state electronic filing program. There are three ways in which taxpayers can file their federal and District returns together electronically:

1.Through an authorized software provider listed on the Internal Revenue Service (IRS) website or the OTR website;

2.Through a tax practitioner who is an authorized e-File provider; or

3.Through a commercial online filing service. This allows taxpayers to transmit their DC and federal returns from their PC for a fee.

fillable forms

The DCfreefile fillable forms e-File program provides an online version of the D-40/D-40EZ and related schedules. The DCfreefile fillable forms program allows the taxpayer to complete the return online by entering the DC state tax information as if the taxpayer were filling out a paper return. The DCfreefile fillable forms option is available only to DC residents, but there are no income or age restrictions. Once the return is completed, it can be e-Filed at no charge or printed for mailing. The DCfreefile fillable forms program also performs basic calculations. If you usually file on paper forms, the DCfreefile fillable forms e-File program may be a good choice for you.

DCfreefile is a free federal and state income tax preparation and electronic filing program for eligible taxpayers, based on the IRS Free File Alliance program. Eligible taxpayers may prepare and e-File their federal and state income tax returns for free using commercial online software provided by specific Free File vendors. Each participating vendor sets its own eligibility requirements and not all taxpayers will qualify for all companies. Please select a product from the DC Free File page to assure yourself the opportunity to e-File both your federal and District returns.

DCfreefile fillable forms and DCfreefile will be available at the same time as the IRS.

If you use one of the e-File options to file your DC return, you also have three options to receive your refund:

1.Direct Deposit;

2.U.S. Bank ReliaCard™; or

3.Paper Check.

Be sure to make a selection on the return for the refund option that you want. If you do not select an option, you will receive a paper check. Please review the information about the refund card at the front of the book. Instructions for direct deposit can be found on page 17.

Electronic Filing Instructions

The instructions in this booklet are specifically for filers of paper returns. When you file electronically, note that the instructions may differ. Follow the "on screen" instructions. If you need further explanations, review the instructions in this booklet.

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Payment Options

ACH Debit

ACH debit is used for taxpayers who have signed up for MyTax.DC.gov. There is no fee. Bank account information is stored within their online account. MyTax.DC.gov can store multiple bank accounts across mutiple tax types. Taxpayers give the right to debit the money from their bank account. Ensure you allow 1-3 business days if entering change of banking information.

Credit/Debit Card

The taxpayer may pay the amount owed using Visa®, MasterCard®, Discover® or American Express®. You will be charged a fee that is paid directly to the District's credit card service provider. Payment is effec- tive on the day it is charged. Visit MyTax.DC.gov for more information.

Check or money order (US dollars)

Include a check or money order (US dollars), payable to the DC Trea- surer, with your completed return. Write your Taxpayer Identification Number (TIN), daytime telephone number, tax year “2018” and the

type of form filed (“D-40” or “D-40EZ”) on your payment. Attach your payment to the Form D-40P voucher provided in this booklet. Do not attach either to your return.

Form D-40P, Payment Voucher

Use this form when sending a check or money order. Do not staple the voucher to the D-40 or D-40EZ. If you pay at the same time you file your return, include the D-40P with your D-40 or D-40EZ in the return envelope provided. Use the PO Box 96169 mail label from the back flap of the return envelope.

Direct Debit

Electronic filers have the ability to pay their tax due or estimated pay- ment by direct debit. Enter your banking information, including the routing and account numbers, checking or savings account and the date of withdrawal. The date of withdrawal cannot be greater than thirty (30) days from the due date of the return.

Visit the website MyTax.DC.gov for Credit/Debit Card Payment Infor- mation.

Note: International ACH Transaction (IAT). Your payment cannot be drawn on a foreign account. You must pay by money order (US dol- lars) or credit card instead.

Dishonored Payments

Make sure your check or electronic payment will clear. You will be charged a $65 fee if your check or electronic payment is not honored

by your financial institution and returned to OTR.

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Penalties and Interest

OTR will charge –

•A penalty of 5% per month if you fail to file a return or pay any tax due on time. It is computed on the unpaid tax for each month, or fraction of a month, that the return is not filed or the tax is not paid. It may not exceed an additional amount equal to 25% of the tax due;

•A 20% penalty on the portion of an underpayment of taxes if attributable to negligence. Negligence is a failure to make a reasonable attempt to comply with the law or to exercise ordinary and reasonable care in preparing tax returns without the intent to defraud. One indication of negligence is failure to keep adequate books and records;

•Interest of 10% per year, compounded daily, on a late payment;

•A one-time fee to cover internal collection efforts on any unpaid balance. The collection fee assessed is 10% of the tax balance due after 90 days. Payments received by OTR on accounts subject to the collection fee are first applied to the collection fee, then to the penalty, interest and tax owed;

•A civil fraud penalty of 75% of the underpayment which is at- tributable to fraud (see DC Code §47-4212).

For Estimated Tax Underpayment Interest, Form D-2210, use D-40 Line 35. The form can also be located at MyTax.DC.gov. File the Form D-2210 with your return.

Criminal Penalties

You will be penalized under the criminal provisions of the DC Code, Title 47, if you are required to file a return or report, or to perform any act, and you:

•Fail to file the return or report timely. If convicted, you will be fined not more than $1,000 or imprisoned for not more than 180

days, or both, for each failure or neglect;

•Willfully fail to file the return or report timely. If convicted, you will be fined not more than $1,000 or imprisoned for not more than 180 days, or both;

•Willfully attempt to evade or defeat a tax; willfully fail to collect, account for, or pay a tax; or willfully make fraudulent and false statements or fail to provide information. See DC Official Code §47-4101 through 4107.

These penalties are in addition to penalties under DC Code §22-2405 for false statements (and any other applicable penalties).

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Enforcement Actions

OTR may use lien, levy, seizure, collection agencies, and liability offset if the taxpayer fails to pay the District within 20 days after receiving a Notice of Tax Due and a demand for payment. Visit MyTax.DC.gov.

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Special filing circumstances

Amended return

File an amended DC return if your DC tax liability for a prior open tax year (usually 3 years from date of filing) has changed on the D-40 or D-40EZ return for the tax year you are amending. To file an amended return for the current year, complete another 2018 DC Individual Income Tax Return and fill in the "amended return" oval on the form. Attach a list with explanations of the changes covered by your amended return.

If you are filing an amended return for a prior year, attach a copy of the original and any amended returns filed for that tax year. You can download forms from MyTax.DC.gov or call 202-727-4829 to request forms by mail.

If the IRS adjusts your individual federal tax return, you must file an amended DC return within 90 days of receiving notice of the federal adjustment. Attach a copy of the adjusted federal return and/or de- termination letter.

Joint Returns After Separate Returns

You can change your filing status from a separate return to a joint return by filing an amended return. You generally can change a joint return anytime within three (3) years from the due date of the separate return or returns. This does not include any extensions. A separate return includes a return filed by you or your spouse/registered domestic partner claiming married filing separately, registered domestic partners filing separately, single, or head of household filing status.

Separate Returns After Joint Return

Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Exception. A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. The personal representative has one (1) year from the due date of the return (including extensions) to make this change.

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Getting Started

To complete the paper Forms D-40 or D-40EZ, in general you will need:

•A copy of your completed 2018 federal return, as applicable (Form 1040, 1040NR, or 1040NR-EZ) and any additional forms or worksheets related to the return. You can copy many entries directly from federal forms 1040, 1040NR or 1040NR-EZ. Please be careful since the line numbers may differ from the District Forms D-40 or D-40EZ line numbers;

•A copy of your completed state returns if you filed an income tax return with another state;

•Your W-2 and applicable 1099 forms with DC withholding tax or taxable income;

•A pen with black ink;

•A calculator.

Not all items will apply. Fill in only those that do. If an amount is zero, make no entry, leave the line blank.

Do not enter cents. Round to the nearest dollar. Examples: $10,500.50 rounds to $10,501

$10,500.49 rounds to $10,500

Taxpayer Identification Number(s) (TIN)

You must have a TIN, whether it is a Federal Employer Identification Number (FEIN), Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) or Preparer Tax Identification Number (PTIN).

•An FEIN is a valid number issued by the IRS. To apply for an FEIN, get Form SS-4, Application for Employer Identification Number, or get this form online at www.irs.gov/businesses and click on Employ- er Identification Number (EIN) under Starting a Business. You may also get this form by calling 1-800-TAX-FORM (1-800-829-3676);

•An SSN is a valid number issued by the Social Security Administration (SSA) of the United States Government. To

apply for an SSN, get Form SS-5, Application for a Social Secu- rity Card, from your local SSA office or online at www.ssa.gov. You may also get this form by calling 1-800-772-1213;

•An ITIN, Individual Taxpayer Identification Number is a valid

number issued by the Internal Revenue Service (IRS). The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a SSN from the SSA. ITINs do not serve any purpose other than federal tax reporting.

•A PTIN, Preparer Tax Identification Number is an identification number issued by the IRS that all paid tax preparers must use on tax returns or claims for refund.

You must wait until you receive either number before you file a DC return. Your return may be rejected if your TIN is missing, incorrect or invalid. You could be subject to a balance due or disallowance of credits if your dependent's or other qualifying person's TINs are missing, incorrect or invalid.

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Filling out the form

To aid us in processing your return please follow these rules.

Do not print outside the boxes.

Use black ink.

•

R

O

B

E

R

T

S

Print in CAPITAL letters.

Leave a space between

•

words and between

words and numbers.

Write 3s with a rounded

•

•

top, not a flat top.

3

7

3

7

Write 7s without a

middle bar.

3 x

•

Fill in ovals completely.

Do not “3“ or “x” ovals.

Do not enter cents. Round

5

7

2

0

.

cents to the nearest dollar.

4• 00

Note: Your taxpayer identification number is used for tax purposes only.

Personal information

Complete the personal information as instructed using CAPITAL let- ters and black ink. Use one block per letter, including using a space between address fields. Please write clearly, as this can delay pro- cessing your return.

Wages, tips and salaries

Enter the amount from your federal 1040, 1040NR, or 1040NR-EZ, plus any unemployment compensation received on Line 1 of the D- 40EZ or Line a, Income Information on the D-40.

DC income tax withheld

Add the DC income tax withheld as shown on your 2018 federal Forms W-2 and applicable Forms 1099. Attach all copies of your Forms W-2 and 1099 that show DC tax withheld to Forms D-40 or D-40EZ and submit Form D-40WH with Forms D-40 or D-40EZ. You must file the D-40WH in order to receive credit for DC taxes withheld.

Filing Status

More than one filing status may apply to you. Use the one that will give you the lowest tax. Please ensure the oval to the left of the filing status is filled in.

Generally, you will use the same filing status on your DC return as that used on your federal return. However, if you used married filing jointly on your federal return, it may be better for you to file your DC return using either married/registered domestic partners filing separately or married/registered domestic partners filing separately on the same return. If both have income, figure the tax both ways.

Single (D-40 and D-40EZ)

You were unmarried, divorced or legally separated as of December 31, 2018, or were widowed prior to January 1, 2018, and did not remarry before January 1, 2019.

Filing Jointly (D-40 and D-40EZ)

You were married or have a registered domestic partner and both spouses/registered domestic partners were DC residents as of December 31, 2018, or your spouse/registered domestic partner died