1040A Tax Credit & Payment Tips

"When we go to line 38 we'll see Federal income tax withheld from Forms W-2 and 1099. That amount was $10,686 and we go back over to lines 39, 40a, b, 41, these were all zero. So when we add everything up, line 42 is $10,686. Now when we go to the refund section and if line is 42 is more than line 37, subtract line 37 from line 42. So when we subtract line 37 from line 42 we get $520 that we put online 43, which is the amount that was overpaid. In this example, the amount of line 43, the couple wants refunded to them, the whole $520 so they enter that amount right there. We've already talked about routing numbers and account numbers. They decided that they did not want to apply anything to their 2008 estimated tax. So they basically completed everything. If they had owed taxes, they would have to subtract line 42 from line 37 and make a payment but in this example that's not the case. Next thing is to make sure that they sign the return, both the preparer and the spouse and you'll see here, date it and enter the occupation and John was an accountant, his wife was a teacher and put a daytime phone number in and that's all there is to it. I didn't touch on third party designee but if you did want another person to discuss this you would just complete this section. Once this is signed and returned your instructions are going to have an envelope for your return Make sure you double check your math and check everything very thoroughly get all your forms that are going back to the IRS together and keep a copy for yourself and mail that in and your done."