How to fill out IRS Form 1040 for 2021
March 19, 2021 | by admin
How to fill out IRS Form 1040 for 2021 hi this is form 1040 individual income tax return for the year 2020. i want to show you how this form works as you can see i've already filled in some information for. Sam smith his name and his address and his social security number is right here he is a single person, so his filing status is going to be single i'll check that box just like that and then down.
Here these boxes can be left blank he doesn't want a contribute to the election campaign fund but uh down here he needs to answer this, question about virtual currency and he doesn't have any virtual currency so he's going to say no, and then down here for the study deduction he's not a dependent and he, doesn't have a spouse so those are going to be blank and he wasn't born before this date and he's not blind so those are are blank also no dependents. So no entries in there but uh scrolling, down here to the uh income he has a job and we're gonna say that he made twelve thousand nine hundred dollars this year so his total income on line nine is twelve thousand.
Nine hundred and his adjusted gross income is also twelve, thousand nine hundred but i'm going to change that just a bit here i'm looking. At line 10 b which is a new line for 2020 for charitable contributions a single person can deduct up to three hundred dollars for cash paid to, a qualified organization uh for twenty twenty and i'm going to say that sam um contributed twenty fifty dollars of cash, to uh such an organization so i'll, put that there and that changes his adjusted gross income to twelve thousand eight fifty now the next thing, we wanna do is find the standard deduction over here for a single person it is twelve thousand four hundred so i'm going to put twelve thousand four hundred. On line eleven just or line twelve rather just like that and that gives them a taxable income of 450 dollars so.
The next thing we need to do on this next page is figure out the tax on, this 450 dollars and to do that we need to go to the tax table for 2020 which is in the 1040 instructions and. I just happen to have a copy of that attached to this file and you see i've.
Highlighted some fields to help us uh these this is the tax table from uh. The 1040 instructions for 2020 and uh line 15 which again was 450 dollars um is right here and it is at least, 450 but less than 475 so this is the line we want and his tax is 46 dollars so on line 16. We're going to put 46 right there and his total tax on line 24 is also 46 now let's um look at some of the credits that he, qualifies for first of all he has, a job and on his w-2 he had eleven hundred dollars withheld that's for uh withholding. So his total withholding is uh eleven 1100 and then um if he qualifies for the earned income credit he would put that right here now to qualify there's some uh qualifications that you need to look at, on the instructions um and we're going to say that he does.
Qualify so we need to figure this out and to do that we need to go to the earned income credit table.
Which is down here and i've highlighted these fields for you he's a single person and with. No dependence so he's going to be looking at this column here you'll see, that i've highlighted two rows and the reason i've done that is because he actually needs to look this up look this up twice one for his adjusted gross income and one for, his earned income so let's go back here and find, those numbers his adjusted gross income on line 11 is 128.50 and his earned income on line.