Understanding Income Taxes
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 […]