Income From Business
Number of Your Dependents
You can claim one exemption for each person who is supported by the income from a single tax return.
This is a specific amount of money that can be deducted for each qualifying person in the household, and the amount changes from year to year.
The qualifying child or relative must be a citizen, resident alien or national of the United States, or a resident of Canada or Mexico. An exception may apply for an adopted child that is not a citizen, national or resident alien.
The qualifying child or relative must have a valid identifying number:
Social Security number
Individual Taxpayer Identification Number
Adoption Taxpayer Identification Number
Select Filing Status
Your tax filing status will affect your tax rate. Married people are paying less taxes then Single.
Married Filing Separately
Married Filing Jointly
Head of Household
Taxpayers who don't have enough itemized deductions to exceed their standard deduction are better off using their standard deduction as that will result in the lowest federal income tax.
What are Standard Deductions?
The standard deduction is a dollar amount that reduces the amount of income subject to tax. You cannot take the standard deduction if you are claiming itemized deductions. The amount of standard deduction is based on a taxpayer's filing status. The standard deduction amount can change from year to year depending upon inflation.
Regular Itemized Deductions
Miscellaneous Itemized Deductions
If your total non-cash contributions are over $500 for the year, you must file Form 8283 with your return. You can deduct amounts contributed by check, cash, payroll deduction, or credit card to a qualified charitable organization, as long as you have one of these: written acknowledgment from the donee, Bank, credit card, or payroll record. You can also deduct the value of property, such as used clothing or publicly traded shares of stock, contributed to a qualified charitable organization. Out-of-pocket expenses related to volunteer work for a qualifying organization are deductible unless you were reimbursed. You can also include mileage (at 14 cents per mile) for use of your car related to volunteer work.
There are some items you can deduct even if you don't itemize - these items are called adjustments to income.
If you had income tax withheld during the year, you generally should be sent a statement by January 31 of the next year, showing your income and the tax withheld. Depending on the source of your income, you will receive: 1) Form W-2, Wage and Tax Statement or 2) Form W-2G, Certain Gambling Winnings, or A form in the 1099 series.
Either the American Opportunity Credit or the Lifetime Learning Credit can be claimed for each eligible student, but you cannot claim both in any year.
American Opportunity Tax Credit
The American Opportunity Tax Credit can be claimed for expenses paid first four years of post-secondary (higher) education. You can claim this credit for education expenses incurred by 1) Yourself, 2) the Your Spouse, or 3) Your Dependent. The American Opportunity Credit is worth up to $2,500 per student for four years of post-secondary education. The credit is 40% refundable, up to $1,000, so it can benefit even those with no tax liability. For individual taxpayers, the American Opportunity Credit phases out if modified adjusted gross income is between $80,000 and $90,000. For married filing joint, the credit phases out if MAGI is between $160,000 and $180,000.