How to fill out IRS Form 1040 for 2021 hi this is form 1040 individual income tax return for the year 2020. i want to show you how this form works as you can see i've already filled in some information for sam smith his name and, his address and his. Social security number is right here he is a single person so his filing status is going to be single i'll check that box just like that and then down here these boxes, can be left blank he doesn't want a contribute to the election campaign fund but uh, down here he needs to answer this question about virtual currency and he doesn't have any virtual currency so he's going to say no and then down here for, the study deduction he's not a dependent and he doesn't have a spouse so those are going, to be blank and he wasn't born before, this date and he's not blind so those are are blank also no dependents so no entries in there but uh scrolling down here to the uh income he has.
A job and we're gonna say that he made twelve thousand nine hundred dollars this year so his total income on line nine is twelve thousand. Nine hundred and his adjusted gross income is also twelve thousand nine hundred but i'm, going to change that just a bit here i'm looking at line 10 b which, is a new line for 2020 for charitable contributions a single person can deduct up to.
Three hundred dollars for cash paid to a qualified organization uh for twenty twenty and i'm going to say that sam, um contributed twenty fifty dollars of cash to uh such an organization so i'll put that there and that changes his adjusted gross income to twelve thousand eight fifty now the. Next thing we wanna do is find the standard deduction over here for, a single person it is twelve thousand four hundred so i'm going to put twelve thousand four hundred on line eleven just, or line twelve rather just like that and that gives them a taxable.
Income of 450 dollars so the next thing we need to do on this next page, is figure out the tax on this 450 dollars and to do that we need to go to the tax table for 2020 which is in the 1040 instructions and i just happen to. Have a copy of that attached to this file and you see i've. Highlighted some fields to help us uh these this is the tax table from uh the 1040 instructions for 2020 and uh, line 15 which again was 450 dollars um is right here and it is at least 450. But less than 475 so this is the line we want and, his tax is 46 dollars so on line 16 we're going to put 46 right there and his total tax on line 24, is also 46 now let's um look at some of the credits that he qualifies for first of all he has a job and on his w-2 he had eleven, hundred dollars withheld that's for uh withholding so his total withholding is uh eleven 1100 and then um if he qualifies for the, earned income credit he would put that right here now to qualify there's some uh qualifications.
That you need to look at on the instructions um, and we're going to say that he does qualify so we need to figure this out and to do. That we need to go to the earned income credit table which is down here and i've highlighted these fields for you he's a single person and with.
No dependence so he's going to be looking at this column here you'll see that i've highlighted two rows and the reason i've done that is because he.
Actually needs to look this up look this up, twice one for his adjusted gross income and one for his earned income so let's go back here and find those numbers his adjusted gross income on line 11 is 128.50 and his, earned income. On line one is 12 900. so go back down to the table here and twelve eight fifty is this line and the credit is 225 and 12 900 is this line and the credit is, 221. now he needs to choose the smaller of those two numbers which is according to the instructions for the.
Earned income credit.
And going back up here to line 27 he's going to enter 221 right there on that line and that gives him a refund of uh 1275 on 35a so um, uh he uh is ready to file this form but, before we do that let's look at one other line this recovery rebate credit that is the stimulus.