1040 info

1. Tax Preparation for
Service Members

2. 2
Agenda
Tax Preparation for Service Members
 What are Taxes?
 Completing Form 1040
 When to Update Withholding
 Resources

3. What are Taxes?

4. 4
You are taxed when you…
Three Types of Taxes
Tax Preparation for Service Members
Buy Own
Earn

5. IRS Form 1040

6. 6
IRS Form 1040
Tax Preparation for Service Members

7. 7
Information Needed
Tax Preparation for Service Members
Personal Information
(yourself, spouse & dependents)
 Name
 SSN
Financial Information
 W-2s
 Financial Statements
 Receipts (for deductions)
Prior Tax Returns
 Federal
 State

8. 8
Information About You and Dependents
Tax Preparation for Service Members

9. 9
Filing Status
Tax Preparation for Service Members

10. 10
Total Income
Tax Preparation for Service Members

11. 11
Earned Income
Tax Preparation for Service Members

12. 12
Unearned Income
Tax Preparation for Service Members

13. 13
Form 1099-INT
Earned interest > $10
From bank, credit union
or other financial
institution
Mailed to taxpayer by
January 31
Form 1099-DIV
Investor distributions
during tax year
Mailed to taxpayer by
January 31
Form 1099-R
Distribution > $10
From pension plans,
annuities, retirement plans
Mailed to taxpayer by
January 31
Tax Preparation for Service Members
Unearned Income (continued)

14. 14
Adjustments to Income
Tax Preparation for Service Members

15. 15
Standard vs. Itemized Deductions
Tax Preparation for Service Members

16. 16
Taxable Income
Tax Preparation for Service Members

17. 17
Determining Tax Liability
Tax Preparation for Service Members

18. 18
Tax Credits
Tax Preparation for Service Members

19. 19
Tax Owed
Tax Preparation for Service Members

20. 20
Calculating Tax Owed
Tax Preparation for Service Members
Tax Payments
Total Tax
Tax Owed or Refund
-
=

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Dates to Remember
Tax Preparation for Service Members
Mark your calendar!
 January – Receive W2
 April 15 – Filing Deadline
 October 15 – if Extension Granted
Quarterly estimated taxes due 15th:
 April
 June
 September
 January

22. When to Update Withholding

23. 23
Change in Pay
Tax Preparation for Service Members
Consider changing withholding if your tax bracket changes.
Tax Rate Single Head of Household Married Filing Jointly
10% Up to $9,950 Up to $14,200 Up to $19,900
12% $9,951 - $40,525 $14,201 - $54,200 $19,901 - $81,050
22% $40,526 - $86,375 $54,201 - $86,350 $81,051 - $172,750
24% $86,376 - $164,925 $86,351 - $164,900 $172,751 – $329,850
32% $164,926 - $209,425 $164,901 - $209,400 $329,851 - $418,850
35% $209,426 - $523,600 $209,401 - $523,600 $418,851 - $628,300
37% Over $523,600 Over $523,600 Over $628,300

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Consider changing your withholding when your tax filing status changes.
Update Withholding When ...
Tax Preparation for Service Members

25. Resources

26. 26
Websites
Tax Preparation for Service Members
 Military OneSource
 Consumer Financial Protection
Bureau (CFPB)
 Defense Finance and
Accounting Service (DFAS)

27. 27
Websites (continued)
Tax Preparation for Service Members
 Office of Financial Readiness
(FINRED)
 Internal Revenue Service (IRS)

28. 28
Tax Preparation Resources
Tax Preparation for Service Members
Free Tax Filing Services:
 Military OneSource
□ MilTax
 Volunteer Income Tax
Assistance (VITA)
Other resources:
 Tax preparation software

29. 29
Additional Support Resources
Tax Preparation for Service Members
 Personal Financial Manager (PFM) and Personal Financial Counselor (PFC)
□ Degreed and nationally certified financial professionals
□ Provide no cost personal financial counseling
□ Offer financial education and training
 Locate a PFM at:
□ Military Installation locator
installations.militaryonesource.mil/
 Locate a PFC at:
□ PFC locator map
finred.usalearning.gov/pfcMap

30. Summary and Review

31. 31
Questions?
Tax Preparation for Service Members
 What are Taxes?
 Completing Form 1040
 When to Update Withholding
 Resources