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When you first look at the income tax form, you will undoubtedly have tax form questions. These forms can be a little confusing for someone who is not versed in accountant talk or has never filled one out before.
When you know what some of the terminology means, you will have an easier time filling out the forms. If you do make some mistakes, you will get a notice in the mail stating that there either needs to be some adjustments made on your return, or that they have already been made. One of the things to watch out for, though, is that you do not start a tax audit. If you do have tax form questions, it is better to get them cleared up before you file the return.
1. Which Tax Form Should I Use?
Generally there are three forms for filing your tax return. There is the 1040, 1040A, and the 1040EZ. The 1040 EZ form is the shortest of all three and is for basic filing. If you do not have any deductions other than the Earned Income Credit, then this is the form to choose. However, for more complex deductions, the regular 1040 form is the one to use. It is much longer, and more complex. This type of filing might require a certified accountant.
2. What Is the Earned Income Credit?
The Earned Income Credit, or EIC, is where you can adjust your income for more of a return. If you earned less than $41,646 in the previous year, then you qualify for this adjustment.
3. What Is a Dependant?
A dependant is any relative living in the home who is economically dependant on you. This is typically a child under the age of 19 or under the age of 24 and full time student. You will enter our dependants in your tax form along with their names, ages, and social security numbers.
4. Who Files as Head of Household?
Most generally the person who lists their name as head of household does not matter when filing. Typically it is the husband, or main income earner.
5. What Is Included in Gross Income?
Gross income is the total of all the income you earned throughout the tax year. This can include wages, tips, commissions, business income, property sales, interest, dividends, alimony, annuities, prizes, pensions, or even interest earned on a trust. Any monies that you collect, for any reason, is listed in the gross income section.
6. What Income Is Non-Taxable?
While you are going to list all your gross income, some of that income will be non-taxable. Things like child support payments, welfare benefits, workers compensation, long term insurance payments because of physical injuries, or social security are all included. This income is not taxable.
Many have tax form questions about how to correctly fill out the three different forms available. By taking your time, reading the workbook, and seeking out qualified help, you will be able to get the answers you need and fill out your tax form correctly.
When you know what some of the terminology means, you will have an easier time filling out the forms. If you do make some mistakes, you will get a notice in the mail stating that there either needs to be some adjustments made on your return, or that they have already been made. One of the things to watch out for, though, is that you do not start a tax audit. If you do have tax form questions, it is better to get them cleared up before you file the return.
1. Which Tax Form Should I Use?
Generally there are three forms for filing your tax return. There is the 1040, 1040A, and the 1040EZ. The 1040 EZ form is the shortest of all three and is for basic filing. If you do not have any deductions other than the Earned Income Credit, then this is the form to choose. However, for more complex deductions, the regular 1040 form is the one to use. It is much longer, and more complex. This type of filing might require a certified accountant.
2. What Is the Earned Income Credit?
The Earned Income Credit, or EIC, is where you can adjust your income for more of a return. If you earned less than $41,646 in the previous year, then you qualify for this adjustment.
3. What Is a Dependant?
A dependant is any relative living in the home who is economically dependant on you. This is typically a child under the age of 19 or under the age of 24 and full time student. You will enter our dependants in your tax form along with their names, ages, and social security numbers.
4. Who Files as Head of Household?
Most generally the person who lists their name as head of household does not matter when filing. Typically it is the husband, or main income earner.
5. What Is Included in Gross Income?
Gross income is the total of all the income you earned throughout the tax year. This can include wages, tips, commissions, business income, property sales, interest, dividends, alimony, annuities, prizes, pensions, or even interest earned on a trust. Any monies that you collect, for any reason, is listed in the gross income section.
6. What Income Is Non-Taxable?
While you are going to list all your gross income, some of that income will be non-taxable. Things like child support payments, welfare benefits, workers compensation, long term insurance payments because of physical injuries, or social security are all included. This income is not taxable.
Many have tax form questions about how to correctly fill out the three different forms available. By taking your time, reading the workbook, and seeking out qualified help, you will be able to get the answers you need and fill out your tax form correctly.
