1040A Tax Credit Tips

Video Transcript

"Now, we're on line twenty-two, form 1040a, and this is simply the amount from line twenty-one, on the other side, which was $101, 560. The line twenty-three a and b does not apply for this couple so we're going to enter the standard deduction, which is over here on the left margin. Since this is a married, filed jointly couple, the amount is $10, 700 and that goes on line twenty-four. Then, we subtract line twenty-four from twenty-two, and we get $90,860 that we put on line twenty-five. We look over at line twenty-six and it says if line twenty-two is $117,300 or less, multiple $3,400 by the total number of exemptions claimed on line sixteen. Since our amount is lower than $117,300, $3,400 times four is $13,600 so we enter that amount on line twenty-six and we subtract that from line twenty-five and we get $77,260 and that is our taxable income."