Tax Return Basics

Tax Return Basics ## Who Must File Filing requirements depend on filing status, age, and gross income. For 2024: | Filing Status | Under 65 | 65 or Older | |---|---|---| | Single | $14,600 | $16,550 | | Married Filing Jointly | $29,200 | $30,750 (one spouse 65+) / $32,300 (both 65+) | | Married Filing Separately | $5 (any age) | $5 | | Head of Household | $21,900 | $23,850 | | Qualifying Surviving Spouse | $29,200 | $30,750 | Special rules: Self-employed individuals must file if net self-employment income is $400 or more, regardless of total gross income. --- ## Form 1040 Structure Overview Form 1040 flows from top to bottom through several calculation stages: 1. Filing information — Name, SSN, filing status, dependents 2. Income — All sources of gross income (Lines 1–8) 3. Adjustments to income — Above-the-line deductions (Schedule 1, Part II) 4. Adjusted Gross Income (AGI) 5. Standard or itemized deduction 6. Qualified Business Income Deduction (if applicable) 7. Taxable Income 8. Tax — From tax tables or rate schedules 9. Credits — Reduce tax liability 10. Other taxes — SE tax, AMT, etc. 11. Payments — Withholding, estimated payments, refundable credits 12. Refund or amount owed --- ## Gross Income Gross income is all income from whatever source derived unless specifically excluded by law (IRC §61). It includes: - Wages, salaries, tips - Interest and dividends - Business and rental income - Capital gains - Alimony (pre-2019 divorces) - Gambling winnings - Cancellation of debt (with exceptions) Not included in gross income: Gifts, inheritances, life insurance proceeds (generally), qualified scholarships, workers' compensation. --- ## AGI Calculation **AGI = Gross Income…