1040A Tax Credits & Payment Tips

Video Transcript

"In this section we're going to talk about tax, credits, and payments. These are lines 22 through 27. Line 22 you simply enter the amount from line 21, the adjusted gross income we figured earlier. Line 23, if you were born before January 2, 1943 or your spouse was born before that date, you can check one of these two boxes and if you were blind you check these two boxes and then the total number of boxes checked on line (on box) 23a. Line b, if you are married filing separately and your spouse itemizes deductions then you go to page 30 and check that. Line 24 you enter your standard deduction and your standard deduction is shown here for people who checked any box on 23a or 23b or who can be claimed as a dependent, you need to refer to page 30. Everyone else if you're filing as single or married filing separately $5,350, married filing jointly is 10,700 and that applies for a qualifying widow or widower too, and head of household is 7,850. You enter this amount on line 24 and then you subtract line 24 from line 22 and put that on line 25. Then, if line 22 is 117,300 or less, multiply 3,400 by the total number of exemptions claimed on line 6d. If line 22 is over 117,300 you'll have to refer to a worksheet on page 32. Once you've done this, subtract line 26 from line 25. If line 26 is more than line 25, enter zero and this subtraction gives you your taxable income (that) on line 27."