Identification and Application of tax forms needed
3
Filling the taxpayer's demographic information
4
Report taxpayer's income
5
Calculate Adjustments to Income
6
Deduct applicable standard or itemized deductions
7
Calculate the taxable income
8
Calculate total tax owed or refund due
9
Filling out the taxpayers credit information
10
Verify payment of estimated taxes and apply for extensions if needed
11
Approval: Review the filled return Form
12
Submit e-filing or paper filing
13
Send the taxpayer a copy of the final return
Gather all tax-related documents and information
Collect all the necessary tax-related documents and information from the taxpayer. This includes income statements, W-2 forms, 1099 forms, receipts, and any other relevant financial papers. This task is crucial as it lays the foundation for accurately completing the individual tax return.
Identification and Application of tax forms needed
Identify which tax forms are required for the individual tax return. Determine if the taxpayer needs to fill out Form 1040, 1040A, or 1040EZ. Apply the appropriate tax form based on the taxpayer's circumstances. This task ensures that the correct tax form is used to report the taxpayer's income and deductions.
1
Form 1040
2
Form 1040A
3
Form 1040EZ
Filling the taxpayer's demographic information
Enter the taxpayer's demographic information into the tax form. This includes the taxpayer's name, address, Social Security number (or ITIN), and filing status. Pay attention to accuracy and ensure that all personal details are entered correctly to avoid any issues or delays in processing the return.
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Single
2
Married filing jointly
3
Married filing separately
4
Head of household
Report taxpayer's income
Report the taxpayer's income for the tax year. Include all sources of income such as wages, salaries, tips, interest, dividends, and any other taxable income. Accurately reporting income is crucial for calculating the taxpayer's tax liability.
Calculate Adjustments to Income
Calculate any adjustments to income that the taxpayer may be eligible for. These adjustments can lower the taxpayer's taxable income and potentially reduce their tax liability. Some common adjustments include contributions to retirement accounts, student loan interest, and self-employment expenses.
Deduct applicable standard or itemized deductions
Determine if the taxpayer should claim the standard deduction or itemize their deductions. Calculate the amount of deductible expenses such as mortgage interest, state and local taxes, medical expenses, and charitable contributions. This task ensures that the taxpayer claims the maximum deductions allowed by law.
1
Standard deduction
2
Itemized deductions
Calculate the taxable income
Calculate the taxpayer's taxable income by subtracting the adjustments to income and deductions from the total income. This task determines the amount of income that is subject to taxation.
Calculate total tax owed or refund due
Calculate the total tax owed or refund due for the taxpayer. Based on the taxable income, apply the appropriate tax rates and deductions to determine the final tax liability. If the taxpayer has already made payments or has credits, adjust the final amount accordingly.
Filling out the taxpayers credit information
Fill out the taxpayer's credit information to determine if they are eligible for any tax credits. These credits can directly reduce the taxpayer's tax liability and potentially result in a higher refund. Some common tax credits include the Child Tax Credit, Earned Income Credit, and Education Credits.
1
Child Tax Credit
2
Earned Income Credit
3
Education Credits
Verify payment of estimated taxes and apply for extensions if needed
Verify if the taxpayer has already made estimated tax payments throughout the year. If necessary, apply for an extension to file the tax return. This ensures compliance with tax regulations and avoids penalties for underpayment or late filing.
1
Yes
2
No
Approval: Review the filled return Form
Will be submitted for approval:
Report taxpayer's income
Will be submitted
Calculate Adjustments to Income
Will be submitted
Deduct applicable standard or itemized deductions
Will be submitted
Calculate the taxable income
Will be submitted
Calculate total tax owed or refund due
Will be submitted
Filling out the taxpayers credit information
Will be submitted
Verify payment of estimated taxes and apply for extensions if needed
Will be submitted
Submit e-filing or paper filing
Submit the taxpayer's return either by e-filing or paper filing. This task ensures that the tax return is properly filed with the appropriate tax authority within the designated deadline.
1
E-filing
2
Paper filing
Send the taxpayer a copy of the final return
Send the taxpayer a copy of the final tax return for their records. This task ensures that the taxpayer has a copy of their completed return and can refer to it when necessary.