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Video instructions and help with filling out and completing How To Complete Irs Form 966

Instructions and Help about How To Complete Irs Form 966

Hi this is John with PDF tax this here is our first look at form 1040 for 2022 it's a new form a new tax law it is the draft copy that was released on June 29th so it still has the watermark on it as you can see you might recall that President Trump had promised to reduce the form 1040 to the size of a postcard and so this is it a lot different than what has been in prior years but it does have a second page to it which is right here still though a lot smaller than 1040 was in prior years so what the IRS has done is they have created six new schedules to capture the information that used to be on the 1040 Schedule one as additional income and adjustments schedule two is tax Schedule three is non refundable credits schedule four is other taxes schedule five other payments and refundable credits and schedule six foreign address and third party designee now if you take a closer look at the form 1040 here one of the first things you're probably going to notice that right here is that there's only three filing statuses last year there was five the tax law has changed of course but that part has not changed there's still five filing statuses so you have to wonder if you're single or if you're married filing joint how do you tell the IRS or how do you indicate on this form that that's the case well we won't know for sure until the instructions for this form come out but I'm pretty sure that the way it's gonna work is this if you enter your name and social here just one name and one social the IRS is going to assume that you're single unless you check one of these boxes and likewise if you enter two names and two socials the IRS will assume that you're married filing joint unless you and check one of these two but these three boxes so I'm pretty sure that's the way that is going to work let's go ahead and enter some information on this form so that we can get an idea of how it is going to work this year so I'm going to enter a single taxpayer so I'm just going to enter one name and one social and I'm not going to check any of those boxes up there but I am going to enter a I'm going to enter a dependent here and her social is gonna be this she is his daughter and let's say that she qualifies for the child tax credit so we'll check that box and if we scroll down a little bit here and we'll add some wages of let's say $50,000 and interest income of 1100 and then scroll down a little bit further and we're gonna say that he has business income on line 12 here of 2022 like that and if he has business income he's gonna have self-employment tax so what's in turn 40 here so 2022 - 140 is 1860 and it says here that that should go to Line six so let's see if it did and there it is on line six so right now we have taxable income on line 1050 to 960 but it looks like I forgot to put in the standard deduction which goes on line eight that this year for a single person as you can see over here single $12,000 that's nearly double what it was last year which is pretty nice but the downside of that is as you can see there's no line for personal exemptions anymore that's because with the new tax law there are no personal exemptions which is a kind of a bummer but that's just the way it is Congress gives and Congress takes away so now on line 10 our taxable income is 40,000 960 now if we want to figure the tax on 40,000 960 we need to look at this 2022 tax rate schedule and the single schedule is right here and so 40,000 960 is right in this range so if we pull up our calculator like that and it says the tax is this plus 22 percent of the amount over thirty eight seven so forty thousand nine sixty minus thirty eight seven equals that times 0.2 two equals that plus forty four fifty three fifty equals that so that is our tax right there a tax goes on schedule too so we'll scroll down to schedule two and the tax is right there so we'll enter forty nine fifty in there and it goes back to line eleven oops which is right there we also have some non refundable credits we want to enter on schedule three so let's go down to schedule three first one is the child and dependent Care Credit that came from 24:41 so if we were to fill out that form we'd come up with a credit $400 and then we have a child tax credit you remember we checked that box on the first page of 1040 to say that our child qualified for that credit and the nice thing about that is that has been increased from 1,000 dollars last year to $2,000 this year so that should come back to line 12 on 1040 all right there 2,400 so that's good now let's go down to schedule for for other taxes right here we had self-employment tax because we had that self-employment income so that is going to be $280 it's approximately only something like that that goes to line 14 so he's right there on line 14 and now our total taxes 28:30 now let's say that we had income tax withheld in our w-2 of 2,400 we also probably made some estimated payments because of the fact that we had self-employment income and that will.

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