How to Fill in US Tax Deductions and Credits

Insert your gross income on the first line after the dependent exemption section., Enter the taxable Interest, and Unemployment on lines 2 and 3 of the 1040EZ; Fill in the educator expenses for teachers, IRA deductions, Student loan interest...

35 Steps 1 min read Advanced

Step-by-Step Guide

Step 1: Insert your gross income on the first line after the dependent exemption section.

Everything after this line, before the adjusted gross income, are adjustments.

Step 2: Enter the taxable Interest

, This is your Adjusted Gross Income. ,, Enter that in the next line.

This is your Dependent Exemption Deduction.

Since this is subtracted from the Adjusted Gross Income, it will reduce your taxable income. , These are figured in when you figure your total tax. , These are used to reduce increase the refund.

Step 3: and Unemployment on lines 2 and 3 of the 1040EZ; Fill in the educator expenses for teachers

Step 4: IRA deductions

Step 5: Student loan interest deduction

Step 6: Tuition and Fees deduction on lines 16 through 19 of the 1040A; and Fill in the Educator expenses

Step 7: Certain business expenses

Step 8: Health Savings Accounts

Step 9: Moving expenses

Step 10: One half of self employment tax

Step 11: Self-employed qualified plans

Step 12: Self-employed health insurance deduction

Step 13: Penalty on early withdrawal of savings

Step 14: Alimony paid

Step 15: IRA Deductions

Step 16: Student Loan Interest Deductions

Step 17: Tuition And Fees Deductions

Step 18: and Domestic production activities deduction on lines 23 through 35 of the 1040 return.

Step 19: Total these figures

Step 20: and subtract according to the form.

Step 21: Enter your itemized deductions from Schedule A if you file Itemized Deductions or the standard deduction (by looking at the figures in the far-left column of the 1040) and subtract from the AGI.

Step 22: Multiply the exemption dollar amount by the number of exemptions claimed on the dependent total section of the first page.

Step 23: Fill in the refundable credits: Credit for child and dependent care expenses (Form 2441)

Step 24: Credit for elderly or the disabled

Step 25: Education credits (Form 8863)

Step 26: Residential energy credits (Form 5695) (1040)

Step 27: Foreign tax credit (Form 1116) (1040)

Step 28: Child Tax Credit (Form 8901)

Step 29: Retirement Savings Credit (Form 8880)

Step 30: and Other credits.

Step 31: Fill in the non-refundable credits: Estimated tax payments

Step 32: Earned income credit

Step 33: Nontaxable combat pay

Step 34: Excess social security and railroad tax withheld

Step 35: Additional child tax credit (Form 8812).

Detailed Guide