Understanding Income Taxes

By |2017-01-12T10:57:13-05:00January 12th, 2017|Categories: Taxes|Tags: , , , , , |

Understanding Income Taxes

by ptvan.

Why is it so hard to understand my Form 1040?

It’s a pretty daunting task to read your 1040 and understand what you’re looking at. When you break it down, it’s really not too bad.


Section 1 of the infographic indicates where you find the Income you earned through the year. This includes income such as W-2 wages, Passthrough activity, Social Security, etc.

Deductions For Adjusted Gross Income

Section 2 indicates deductions you can take directly against Income that reduce the amount that determines your Adjusted Gross Income (AGI). It includes such deductions as Self-Employment Taxes paid, Student Loan […]