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Add 1040EZ Form signed

hello and welcome to the updated version of filing the 1040ez today I'm going to show you how to fill out the easiest IRS tax form hence its name the 1040 EZ now there are some people who pay other people to fill out this form for them you should not be one of those people you can do this all on your own I'm going to show you how all right let's get started the first thing you need to think about is do you need to file your taxes at all now my guess is you've already thought about that and that's why you're watching this video but just in case if you're under 65 you're single and you made at least ten thousand three hundred dollars then you do need to file your taxes now there are different rules if you're a dependent so if someone else can claim you as a dependent then you should turn this video off and go watch my other one about filing if you're a dependent it's also important to note that you may want to file your taxes even if you don't have to there are two very good reasons to do that one if you've paid in money for taxes over the course of the year then filing your taxes allows you to get that money back and two if you're a young person and you want to establish an individual retirement account or an IRA you can do that as soon as you can show earned income and filing your taxes allows you to do that once you decide that you're going to file your taxes you have to figure out if the 1040ez is the right form for you so here are some things to consider if you are single or married filing jointly then you can use this form you can't have any dependents though and you have to make less than a hundred thousand dollars in a year and 1500 of that could be an interest but certainly no more than that all of your tips have to be included on your w-2 form and really there can't be anything fancy for your taxes if you want to see the specific rules then you should look in the instructions but these are highpoints the other thing I want to remind you of are the important tax dates by January 31st you should have received all of your tax documents I usually wait like one extra week because it seems like we have something that trickles in at the last minute but once you have all of your forms then you're ready to fill out your taxes and that should be early February March first I put on here because I always want to remind especially students that you need to have your FAFSA form complete and turned in by March 1 even if you don't have all of your numbers for this year turn it in with the numbers from last year and then go back and fix them and then the last date is of course the day that your taxes are due which is April 15th to fill out the 1040 EZ tax form you're going to need your w-2 form some basic personal information including your social security number and then any interest income that you've made over the course of the year so make sure you have gathered these items before you're ready to fill out your form ok here is our practice problem we're going to use the w-2 and the following information to fill out the 1040 EZ tax form Susan Evans is single and wants to contribute to the presidential campaign fund she has one hundred and fifty dollars in taxable interest income from a savings account and cannot be claimed by anyone else Susan is a computer technician and our phone number is one two three four five six seven eight nine zero so we're going to use this information and this w-2 form that she has received from her employer to fill out this 1040 ez tax form now I've already filled in her personal information at the top so I've put in her name and her address and her social security number and checked the box to contribute to the presidential election campaign fund so what we're going to focus on is the part where we enter our actual numbers I'm going to start here with number one number one says wages salaries and tips this should be shown in box 1 of your form w2 so we can go to the w-2 form and we can look in box 1 and we see that it says wages tips and other compensation she has $32,000 now we'll go back to our tax form and we're going to type in $32,000 and that will take us to number two number two says taxable interest if the total is over fifteen hundred you cannot use form 1040ez I remember from the information that she had one hundred and fifty dollars in taxable income and that will take us to number three number three is unemployment compensation in Alaska Permanent Fund dividends if you have these things then you know you have these things and you will put them on this line a lot of young people won't have these things you're just going to type zero and number four says add lines one two and three this is your adjusted gross income so on line four I will put thirty two thousand one hundred and fifty dollars and then I will move to line five if someone can claim you or your spouse if it's a joint return as a dependent check the applicable boxes below and enter the amount from the worksheet on the back so remember that's a different video if you can't be claimed as a dependent that it's important to read underneath the boxes where it says if no one can claim you or your spouse if it's a joint return enter ten thousand three hundred if you're single and twenty thousand six hundred if you're married filing jointly so we'll enter ten thousand three hundred for Susan number six subtract line five from line four if line five is larger than line 4 enter a zero this is your taxable income so we have to look at line four and line five and when I look at both of those I see that line four is larger so I need to subtract and I get twenty one thousand eight hundred and fifty dollars there and this is my taxable income so I'm going to use that number in a few minutes but for now I'll move on to number seven it's our federal income tax withheld from form w2 and 1099 so I'm going to go back to my w-2 I'm going to look on line two which says federal income tax withheld and it says 1849 dot twelve cents okay so I want you to take note that we're using box 1 and box 2 if you can find those two boxes then you're good to go so I'm going to go back to my form and I'm going to type in 18-49 and it had 12 cents so I'm going to go to the other side of the line and type in my 12 cents 8a is the Earned Income Credit you can see instructions for that the Earned Income Tax Credit is an extra tax credit for those who are low-income so if you think that might apply to you you need to find the chart in the instruction manual and you might get some extra money back here but Susan does not qualify so we're going to give her a 0 she also hasn't been in the military so she gets a 0 there and now we're going to move on to number 9 9 says to add line 7 and 8 a these are your total payments and credits since we don't have anything on 8a we're just going to type in 1849 and then our 12 cents again and then we will move on to number 10 10 is our actual tax so we're going to use the amount on line 6 above to find the tax in the tax table in the instructions then we're going to enter the text from the table on this line so we have to have our number from line 6 which was 21 850 we're going to use that number in the text table the tax table is a long list of ranges or brackets and you fall into one of them based on the amount of money that's on line six so what you need to do is use that amount of money to find the bracket that you fall into I'll give you a quick rundown of how the table works and then we'll find the amount of money that we need so if you look at the top you'll see that there's a column that says at least and a column that says but less than so that gives you your range so you need to find the one that your amount of money fits inside and then once you've found the appropriate row you slide across to either single or married filing jointly and then that's the amount of tax that goes on line ten so now we're going to do is we're going to slide down and find the 21,000 you'll see that there are bold numbers for each of the thousands so that you can easily find the number that you need so we are going to go down here to the 21,000 and our number was 20 1850 and so if you look close you'll see that 20 1850 actually falls in two rows because it's the end of one bracket and the beginning of the next and that's why the terminology is so important because when the first row has to be at least 20 1,800 but less than 20 1850 and since we have 21,000 850 exactly it's not less than so that means we need to move to the second row and we find that it's 21,000 850 is at least and so we fall there and our tax is 2820 so Susan owes the government two thousand eight hundred and twenty dollars this year and we're going to take that number and we're going to go back to our tax form so online 10 I'm going to type in my 28 20 and then I'm going to move to number 11 11 is all about health care if you've had health care the entire year you're going to check the box if you haven't then you need to look in the instructions and they're going to charge you an extra tax which you'll need to add to line 11 but we'll say that Susan has had a full year of coverage and that takes us to line 12 where we are going to add lines 10 and 11 together and this is the total tax so again 28:20 is going to go in there that takes us to lines 13 and 14 you are not going to have a number on both thirteen and fourteen because one of them is the refund and one is the amount you owe and you're not going to do both you're not going to get money back and have to pay it in so only one of these lines will have a number on it to figure out which one you're going to fill out you read the first part of each of those lines so 13 says if line 9 is larger than 12 and 14 says if line 12 is larger than nine since our line 12 is larger than nine we are going to fill out line 14 because Susan is going to owe extra money so what we're going to do is we're going to subtract line 9 from line 12 and then that is the amount that she owes so if we go to 14 and we subtract 1849 dollars and 12 cents from 28 20 we find that she owes another 970 dollars and 88 cents so in all reality the first thing that susan needs to do after she vials her taxes is to go talk to her employer and make sure that they start taking out a lot more in federal taxes okay there are only a few things left to do normally what you're going to do is you're going to sign it you're going to date it you're going to add your occupation and a time phone number and then you'll be done I do want to show you these last couple of things you may or may not use them a third-party designee which is right above your signature is if you want to allow someone other than yourself to discuss this tax return with the IRS should they contact you then you would add their information as the third party designee and then at the very bottom you see that there is a place for a paid preparer to put in their information now this is the part of the form that you are never going to have to use because I just showed you how to fill out this form so you're never going to have to pay someone else money so that they can do it for you so you can just ignore that bottom part altogether all right I hope this video has been useful and that you are ready to tackle your own 1040 EZ form I know you can do it good luck and Godspeed