1040 Made Easy: The Ultimate Cheat Sheet to Tax Forms, Exclusions, Deductions & Credits

This book is a must-have if you’re looking for a jargon-free guide to understanding your tax returns. Even if someone else prepares your taxes, you are ultimately responsible for them. This book breaks down the tax calculation into six steps using examples and visuals, demystifying Form 1040. By the end of the book, you’ll learn: Who has to file taxes How to file for free and get tax assistance What documents do you need before filing your taxes (checklist) How to calculate your refund or tax due (examples) Why refundable credits are the most valuable benefits How to run a quick 3 to 5-year analysis of your tax situation (download) This book provides a comprehensive breakdown of tax-saving strategies and rules for US taxpayers, including how to use exclusions, deductions, and credits to decrease tax liability. You will discover and understand how: You can claim the Earned Income Tax Credit (EITC) if you have earned income and can receive up to $6,935. You can claim the $2,000 Child Tax Credit or the $500 Credit of Other Dependents. You can deduct up to $2,500 of the American Opportunity Tax Credit or $2,000 Lifetime Learning Tax Credit if you or your dependent is a student. You can receive additional Premium Tax Credit on your tax return when you have Marketplace health insurance. You can exclude 401(k) contributions from your taxable income. You can deduct up to $6,000 or ($7,000 if over 50) for contributing to a traditional or ROTH IRA from taxable income. You can exclude up to $250,000 (single) or $500,000 (MFJ) from the gain when selling your primary residence. An HSA account can help you save money for medical expenses, receive tax-free contributions, and be used as an investment account. You can use the deductions available to self-employed taxpayers to reduce your taxable income. Sole proprietors, partnerships, LLCs, S-corps, and real estate enterprises can deduct QBI up to 20% of taxable income. You can use Tax Loss Harvesting to offset your capital gains with capital losses and pay less in tax during the year. This book is a comprehensive guide that will help you understand the most important tax forms including W-2, 1099-INT, 1099-DIV, 1099-B, 1099-NEC, 1099-MISC, 1099-G, SSA-1099, 1099-R, 1098-T, 1098-E, 1098, 1095-A, and 1040 with Schedules 1, 2, and 3. The book provides detailed explanations with infographics for each form and its boxes. Few extra things you will discover: You can exclude up to $16,000 of gifts received and not pay any tax on it. You can deduct Plug-in Electric Drive Vehicle Credit on your tax return. You can deduct up to $2,500 of student loan interest paid. You can exclude scholarships used to pay tuition and fees from your gross income. It may still be beneficial for you to itemize your taxes. You can deduct gambling losses up to gambling winnings on your tax return. You can use Form 2555 to exclude up to $112,500 of foreign-earned income from US taxation if you are a US citizen living abroad. The book also includes a companion website with bonus downloads, checklists, infographics, and other resources to help you with your taxes. This comprehensive guide is written by an Enrolled Agent specializing in tax return preparation.