Video instructions and help with filling out and completing Which Form 4797 Finance

Instructions and Help about Which Form 4797 Finance

So um anyways here's what a system of taxes that is voluntary compliance that is that everybody pretty much everybody hates paying taxes but we all do it anyway because we know that we need a country infrastructure like fina roads and bridges and firemen and police officers and that's what all the taxes go to pay for ya depends on your situation if you're a very simple tax situation like your single taxpayer you have no mood deductions you have maybe it's not you don't really need to have some new pair because write it if you have a lot of deductions and some of your deductions because some things are deductible and some things aren't I need somebody to help you go through all that if you're self-employed you're on your own business then it's a good idea to have somebody help you so it depends like I said it depends on your situation if you just our regular employee and you're single then you can do the 1040ez and it's very simple and if you don't make any mistakes on that if you report here's my income here's the text i paid this is what i owe you or you owe me period there's not a lot to that so it's hard to make a mistake on that one but then if you're talking about the 1040 which is what we're going to go over today and there's a lot of different things that can and can't be deducted and if you're self-employed you own your own business there's you know if you run a business out of your house there's certain laws about how much of your house can be deducted as a business expense and I mean so when you're talking about things like that then yeah it's a good idea to have somebody do it for you because you don't want to do it wrong and then be penalized later no no it just lowers your tax bill um so the 1040 is built long form so we have the 1040 the 1040a and the 1040ez we started it backwards because the 1040ez is the easiest it also has the most restrictions on it about who can use it the 1040a a anybody can use it but you can't itemize your deductions so the 1040ez you can only use if you're single or married filing jointly and you can't have kids and you can't has duct shins and you can't have an come over a certain amount you can't have bank interest over a certain amount I can't have stock dividends over a certain amount 1040a anybody can use it no matter what your filing status is and you can have any kind of income and any kind of interest or stock dividends but you cannot itemize your deduction and then 1040 is the long form and that's the one where you itemize your deductions so you can list everything on that form now so we're going to talk about today and in conjunction with the 1040 there are forms a through I want to say Thank oh I think they call their jersey and then some double letters but most of those will not pertain to you guys yeah reforms in gear they're all available on the IRS website and the forms that you need depend on like your situation because there's a form for farm worker income or there's a forum for people that worked and a special thing there's all kinds of different specialized forms that ninety percent of the population never have to look at this that's a little very few hours once yeah or this is the time where you hire a tax professional group and have them look at it for you your deductions the way the deductions work is you know how we had that adjusted gross income line on the 1040a the deductions come after that adjusted gross income and they are deducted subtracted from your income so they lower your taxable income and some things that are deductible are a percentage of your medical expenses alimony if you had to pay alimony if you pay property taxes that's deductible if you pay state or local income tax that's all deductible casualty or theft losses so if you're robbed or if you lose your house or your car or in a wreck or whatever and you have losses that's covered moving expenses not all expenses on the move but certain expenses on this yeah no state income tax is deductible federally but federal tax is not deductible on a state level and then I've charitable donations so if you give money or items charity product that if you have to go look for a job and you know how we talked about paying for employment agencies and things and resumes and all that so if you pay money for resumes that's deductible if you pay for an employment agency that's deductible if you have to buy a suit to go to job interviews that's deductible so job seeking expenses if you have to travel to go to interview like out of state or something you can deduct the airfare and the hotel to travel gasps we're getting to work is not deductible unless you are an independent contractor and then it's not gas it's mileage and it's it works out there's like a calculation but that's all under the self employment forms that you'd have to fill out so it's a little different and then the itemized deductions go on the schedule a form okay so we have deductions and deductions lower your income and then you have tax credits and tax credits lower your total tax so the deductions happen first and lower the income and then you find out how much tax you owe on the new income and then the tax credits get subtracted from that amount you qualify for them now