The 1040 series of 2010 federal tax forms is the standard for every individual taxpayer in the country. The original 1040 is used for people wanting to itemize their deductions. The 1040A and 1040EZ are easier versions of the 1040. They do not include the ability to itemize.
Filling out the 1040 tax forms seems difficult. However, the IRS is constantly working on improving the directions. Let’s take a look.
Filling the 1040 Tax Forms
The first part of these 2010 federal tax forms is the easiest. Simply fill in your name, address, and Social Security Number. If you’re filing with your spouse, fill in their Social Security Number as well. Decide on your filing status. Are you married and filing together? Are you single?
The next part is for your exemptions. This can be yourself, your spouse, or your kids. Also mark if your children are under the age of 17.
Now for your income. Your W-2 federal tax forms your employer sent will have all the information needed here. Income isn’t just wages from work. It also includes pensions, IRAs, qualified dividends, and even alimony. Make sure all your income is reported.
Next you will adjust your income. This means we’ll lower your taxable income by reporting things you’ve paid for. Examples include student loan interest payments, moving expenses, and educator expenses. Add all this up and subtract it from your income. This is called your “Adjusted Gross Income,” or AGI.
You can continue this if you want to itemize deductions. Use Schedule A of the 1040 federal tax forms to figure out which to itemize and how. Transfer the total to your 1040 tax forms. If you’d rather use standard deduction, simply enter this in to your 1040.
Use the instructions on these 2010 federal tax forms to find out your taxes. It may lower after entering in certain credits and payments you’ve already made. This includes education credits and child tax care credits. The total is your total tax.
Now enter the payments you’ve made into the 1040 federal tax forms. This includes all federal taxes you’ve paid over the year. This section also allows you to enter in the Earned Income Credit. Check the instructions on the 2010 federal tax forms to see if you’re qualified for it.
Now, if your total taxes paid is larger than your total tax, then you get a refund! If not, you owe money to the IRS. The payment should be sent with your 1040 federal tax forms. For the refund, simply enter in your bank account for a direct deposit. If you prefer, you can have a check mailed to you.