Taxation in America

Individual income. - To be easy to follow expected readers can obtain copies of individual tax returns are Form 1040A or 1040 of the IRS website www.irs.gov

Individual tax reporting in America is prepared starting with

1. Tax reporting information in the form of the name and address and the number of taxpayers in the form of social security number or ITIN, if the software also asked the date of birth.

1. Tax filing status that consists of: 1. Single 2. Married filing jointly

3.Married filing separately 4. Head of household 5. Qualified Widow (er).

Tax filing status will determine how the tax imposed on tax reporting. IRS tax table lists for the above tax status that can be seen in Publication 17.

1. Exemption is interpreted as a reduction / pengecalian tax based on tax reporting status and family members if any. For fiscal year 2009 per person is $ 3,650.00. On the part of family members, if children under the age of 17 years to get child tax credit of $ 1,000.00 per child. Understanding child could have here is the nephew, grandchild or foster child (adoption)

1. The next part is the income statement that starts with earnings from work, usually from the W-2 obtained from the company 'in which the reporting of taxes and so on until all the earnings are reported, if indeed there is not emptied. Example if you do not have the interest of the bank, emptied. Revenue usually begins with a line 7 to line 21. In part this could happen "reduction in revenue" due to the losses due to stock, business or rental property

1. Adjusted Gross Income is translated as a tax deduction from total income of taxpayers based on the items mentioned diformulir 1040A or 1040. For example if the taxpayer has a student loan interest to be reported in Form 1098-E or put money in a retirement IRA. The total revenue minus total adjusted gross income in the column is usually referred to as AG

1. Standard deduction is a reduction in general taxes for taxpayers based on the status fiingnya: 1. Single 2. Married filing jointly

3.Married filing separately 4. Head of household 5. Qualified Widow (er).

Single examples of "standard deductionnya" is $ 5,700.00. If the complainant has a home can choose the tax deduction called "itemized deductions" which the tax reporting will include interest paid to the mortgage company, premium credit insurance (PMI), property tax, donations to the house of worship, etc.. Other Pengurangan2 in the form schedule A

Part tax credit that serves only to reduce the tax - In 1040 or 1040-A on the "Tax and Credit" is the "tax and credit" for taxpayers.

Example: "tax revenues" in 1040 on line 46 is the total tax revenue from taxpayers

For example: "credit" or reduction of taxes in 1040 began with the numbers 47 to 53.

Credit is used for reducing the tax dollars directly to the dollar, not the percentage

Tax reduction credit shall follow the sequence number, beginning with the foreign tax credit (number 47).

If no credit is claimed keurutan continue next and so on. Part of this credit be categorized as tax deductions that can not be returned (non-refundable credit), but serves only to reduce taxes to zero. So if the tax credit through the remaining credit can not be used.

Especially for the years 2009 and 2010, "education credits" could reduce the tax and also can get back tax credit (refundable credit) to 40% of the money payments (tuition) at a college or university. Expenditures for housing and meals can not be diklaim.Untuk more clearly be seen on the 8863 form and instructions.

Child tax credit can reduce taxes and also the possibility to obtain the return credit (refundable credit) if the taxpayer has a tax that is smaller than the child tax credit and sufficient income to get a "child tax credit" in full ($ 1,000.00 per child)

For example: taxpayers claiming two children under the age of 17 years, received

credit of $ 2,000.00 (for the child tax credit) line 48, but only $ 1,200.00 income tax on line 46. From $ 2,000.00 credit, $ 1,200.00 will be used to reduce taxes and reduce income taxes to zero dollars, the remaining balance of $ 800.00 will be transferred to the additional tax credit (the additional child tax credit) line 65 to fill out a form 8812.

Tax credits that can be returned (refundable credit) is at 1040 A and 1040-the "payment".

On line 63 are loans from the government if the taxpayer works, the maximum credit is $ 400 or $ 800 Credit perkeluarga is known as the "Making Work Pay Credit" calculated in the form of M.

This credit can be claimed for tax years 2009 and 2010. It is important to know that if married filing joint (MFJ), not necessarily both have SSN, but can any one SSN or ITIN to be able to get the maximum credit of $ 800.00. If single or MFJ both with the ITIN will not get this credit.

Earned income credit (EIC) is the credit given to taxpayers because the taxpayers' income is still below the low income category. See previous diartikel about Earned Income Credit category. Link to IRS publication 596 or the website is http://www.irs.gov/pub/irs-pdf/p596.pdf

Other credit if the taxpayer is buying a home stay for the first time, can get a credit of $ 8,000.00 within 3 years if not previously have a house or if you ever have a house

can get a credit of $ 6,500.00. See syarat2 rules for claiming this credit on Form 5405.

Buying a hybrid car can get credit, but limited in some brands. Toyota and Honda hybrid cars can not get the credit, but the car "Nissan Altima hybrid" can still get credit.

Example: Nissan Altima hybrid in 2009 and 2010 can get a credit of $ 2,350.00,

Mazda Tribute Hybrid 2WD for 2009 can still get a credit of $ 3,000., For the details can be found at the IRS link for a list of cars that still get credit.

When taxpayers buy a new car in 2009 after February 16 and until December 31.2009 could include the purchase of a car sales tax in addition to "standard deduction", or itemized deduction on line 40 - A in 1040. Maximum purchase price of the car is priced $ 49.500, or a combination of purchasing a car at a price not to exceed price of $ 49,500.00.

Sample sales tax for CA between 9% to 9.75%, so if the price is $ 20,000.00 and car sales taxnya 9.5% then sales tax = $ 1,900.00. This calculation is carried out in Schedule A. Sales tax is added kestandard deduction or itemized deductions. For example: Single standard deductionnya like the example above is $ 5,700.00 then added to the now standard $ 1,900.00 to $ 7,600.00 deductionnya