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Add 1040EZ Form countersignature

welcome to tax teach i hope you guys are having a great day my name is sean i'm a certified public accountant specializing in taxation today i want to teach you guys about form 1040 the u.s individual income tax return i'm giving you some basics about the form then go over how to actually fill the form itself so it's that time of year where a lot of you guys are receiving your form w2s from your employers if you guys want to learn a little bit more about form w-2 i did a video earlier on so you can check up here somewhere to and i should take you to the video so form 1040 u.s individual income tax return is a form where you fill it out and it determines how much income taxes you owe the irs so it's very important to fill out the form correctly because it determines how much you owe federal government the form is due around april 15th so that's coming up so that's why i wanted to do the video to teach you guys how to fill out the form so without further ado let's go ahead and check out uh form 1040 for 2020. here's a form 104 to use individual income tax return for 2020. in this example i'm assuming a single taxpayer with just one job so a very basic form 1040. um so first thing you have to do is mark your filing status so we're gonna mark single i already pre-populated this information um so you just put your name your social security number and where you live next we look at the standard deduction and what this is just trying to do is figure out if someone can claim you so if you're a college student this might apply for you your parents might still claim he's a dependent so you mark your as a dependent i will assume that this does not this is not the case for this taxpayer so we'll ignore the section next age of blindness if you're 65 or blind or both you get an extra standard deduction in this case we're assuming the taxpayer is under 65 and not blind so this wouldn't apply either next part is dependence so if you have children you put their name down here social security in relation to you if you're claiming them as a dependent um if they're under 17 you can take them as a child's tax credit if they're over 17 they might be eligible for the dependent credit so like college students um in this example we're assuming this doesn't apply so we wouldn't fill this out but if you did have children or dependents um it's pretty pretty straightforward you put their name social security relation to you then if they qualify for the credit either credit uh line one of the form 1040 so this is where it really starts the form 1040 begins and so i have an example form w2 i'm going to be using i did a whole video about this earlier so a link should be popping up now where you can go check out that formula b2 and i go over line by line the 4w2s if you want to get familiar with that go ahead and do that but for now i'm going to go to the form w2 you see you hear wages tips and other compensation we're going to pull that number to 50 grand and bring it over to your form and put it right here 50 000. and so if you had multiple form w2s you would add up all the form to b2 amounts the line one amounts but since this is just one job example we're only we only have one one amount the 50 000 but just keep that in mind if you're multiple jobs you're gonna have to be adding multiple form w2s um and you you want to attach the form w2 to your return when you submit if you mail the form 1040. um to be this interest really applies if you have bank address which most people do have um in this in this case i'm gonna just assume a hundred dollars which is quite a bit but i'm just gonna it's just an easy number to work with if you have over a thousand five hundred in interest and dividends you have to attach schedule b um so just be aware of that i'm not going to be going over that in this example three um 4a through or excuse me 4b through 6b doesn't apply this really mostly applies to people who are retired and are taking pensions ira distribution social security benefits and i will be going over that in this example so you can disregard 4b 5b and 6b line 7 applies if you have capital gains the most common example that is stock so if you sell stock throughout the year you might have a capital gain or loss and you put that capital gain or loss on line seven eight other income i'll show you schedule one real quick what it looks like and what kind of other income might apply but in this example i'm not going to go over into in-depth so here's schedule one here's some examples of additional income the most probably the one that i apply the most this return is unemployment compensation so if you're unemployed throughout the year you would put them out line seven and then you sum up lines one through eight and put it on the total line nine and you'd pull line nine to your 1040 and put it on line 8 of the 10 40. and then line 9 use a simple uh add of all the prior lines we just do 50 000 and then the 100 so our w2 income and our interest income that's our total total income and you can see 10 here adjustments to income so this is like deductions to this fifty thousand fifty thousand one hundred amount um once again this is found on schedule one so we'll go back to schedule one as a quick reference and this is an example of deductions you can take against that uh your income alimony student loan interest deduction tuition and fees educator expenses so all these are some expenses that you can take against your income for purposes example we're assuming no adjustments to income um so nothing for tennessee and then um line 11 it's just going to be our 50 100 amount it's just um subtracting line intensity from that a since we have no adjustments to income it's just our 50 000 amount in 12 we're going to be taking our standard deduction which is 12 400 for 2020. you might think about itemizing your deductions if you own a house and are paying interest on your mortgage you pay a lot of state local taxes and give a lot to charity that's when you might think about getting your itemized deductions because itemized deductions is a bunch of expenses that you add up and if those expenses are higher than 12 400 then you should itemize for the most part if you're a single taxpayer with just one job your prop and you don't own a house you're probably just going to do your standard deduction of 12 400 and that's what i'm going to do in this example 13 doesn't apply 14 just uh addition so we use all 400 and now we pull out our calculator and subtract twelve thousand four hundred from fifty thousand one hundred so we got fifty thousand one hundred minus our standard deduction thirty seven thousand seven hundred and we put that amount right here and that's our taxable income so this is the the base in which we calculate our tax and so once we go to the second page of the 1040 so we're about halfway there we see tax and see instructions i have the instructions pulled up i'll leave a link in the description the video description of where you can find these instructions so here's the instructions here i'm on page 70 and this is where they show you how to calculate tax if you guys remember back to your 1040 we have thousand 37 hundred if you go back to our instructions here we're gonna use this column here single because we're a single taxpayer we're gonna go down to thirty seven thousand and seven hundred which is right here and we're going to owe 4 330 in taxes so we go back to our form and that is how much tax we owe and then we do addition here 18 4 3 3 so we keep going down and all these lines in between relate to credits which are like child tax credit um there's other kinds of credits you can take i'm not go i'm not going to go into depth about what credits you can take that might be something for a different video this is a very simple form 1040 i'm trying to show you guys just to understand the mechanics of the form so for now we're just going to keep on this simple example right here so we got so line 24 is our total tax um and now we compare what we owe to what was withheld throughout the year so you probably recognize throughout the year that your and your paychecks taxes are being withheld and that's displayed on our form w-2 so if we go back to our form w2 here and we see our federal income tax withheld we see 5098. we're going to take this number and put it right here 5098 and also flow it down to here and we keep going down and then we pull that information here line 33 which is our total tax payments since we're a single taxpayer with just one job um the only tax payments we made was our paychecks that were being withheld so we got the 5000 figure right here and um and then we do some math on line 34 we subtract um 33 from 24. so we owe 4 330 we calculate how much taxes we owe throughout the year but we overpaid right we paid 5098. so let's pull out the calculator here and let's see minus four three three zero so we have six hundreds our 768 dollar refund and for the most part you're going to want to get that refunded to you which is 35a and then you put in your bank information right here checking your routing number account number if you owe taxes you do blind 37 38 possibly and then you just sign your form 10 40 at the bottom um your signature date and your occupation and then your spouse as well if you're if you're married so there you have it a very simple form 1040. i hope this is helpful and helping you understand the mechanics of the form i just want to show you guys show you all a basic form 1040 and how it that concludes the video thank you all for watching um if you guys want me to do more complicated form 1040 tutorial let me know and i can do a more complicated example video in the future um if you haven't already please like the video it supports the channel and i appreciate that also if you haven't already please subscribe subscribing just keeps you up to date on when i post videos and it's free so you know why not um thanks again for watching the video take care all and i'll see you next video