Video transcription

How to fill out tax forms. Complex issue to deal with. As we look at what we have to do is the first thing I would do is organize all of your receipts, and income items into different pockets. You need to understand that wages go on one line, interest and dividends go to different line of a schedule B. Different things go there. That is what makes me up this book called 1040 quick finder. It has tabs describing line by line items, and what each schedule is. Schedule A has itemized deductions, which are your mortgage interest and real estate taxes. B has items such as your interest income, your dividends. C is for self-employed individuals. So you have your business income and deductions on that form. Schedule D is for investment gains and losses whether it is stocks, bonds, or buildings or investment property. E is for rental on page one, page two has flow through item for partnerships or S corporations. F is a farm schedule, SE is for self-employment taxes, and this book the quick finder has a tab for each. labeling each so I refer to the quick finder. J. K. Lasser also has book similar to this, and there's a number in your local bookstores that have line by line instruction. As well as the IRS has publication 17 with instructions, and publication 334. So you need to understand what it is from schedules A, B, C, D, E you then go to forms. There's form like a 2106, which is a form number. The 2106 substantiates business losses, and business items of expenses, which may go to your business or go to your itemized deduction as miscellaneous if you are an employee. 4797 sale of business property goes to the D, and then to page one of your form 1040. You need to understand, and that is what we're talking about understanding what taxes you have so you understand how to fill out, and what line by line item goes there. The numbered forms then substantiate what is on schedule A, B, and C, which then go to page one of the 1040. It should be a progression of that item coming through with additions and subtractions to it. And then it ends up on the 1040 before you do your final calculation of tax using this or any other manual to determine what tax bracket you are in, less your exemptions, and what tax you have.