You are filling out your tax return, run into a jam and just can't quite seem to get a handle on completing it. You wish to yourself that IRS could finish filling this form out for you. One of the little known services available to the average person is for the IRS to figure your tax or your refund. If you qualify, the IRS will not only figure your tax, but will compute the credit for the elderly and disabled, the earned income credit, and the making work pay credit.
You qualify for the IRS to figure your tax if you meet the following criteria:
1. You do not choose direct deposit as a method of refund receipt.
2. You do not want any part of your refund applied to estimated taxes for 2011.
3. You received income is only from the following sources:
a. wages, salaries, and tips,
b. interest and dividends
c. taxable social security benefits
d. unemployment compensation
e. IRA distributions
f. Pensions and annuities.
4. Your taxable income is less than 100,000.
5. You do not itemize your deductions on Schedule A, Form 1040
6. You do not file any of the following forms:
a. Form 2555, Foreign Earned Income or Form 2555-EZ, Foreign Earned Income Exclusion.
b. Form 4137, Social Security and Medicare Tax on Unreported Tip Income
c. Form 4970, Tax on Accumulation Distribution of Trusts
d. Form 4972, Tax on Lump Sum Distributions
e. Form 6198, At Risk Limitations
f. Form 6251, Alternative Minimum Tax-Individuals
g. Form 8606, Nondeductible IRAs
h. Form 8615, Tax for Certain Children Who Have Investment Income of More Than 1,900.
i. Form 8814, Parents' Election To Report Child's Interest and Dividends
j. Form 8839, Qualified Adoption Expenses
k. Form 8853, Archer MSAs and Long Term Care Insurance Contracts
l. Form 8889, Health Savings Accounts
m. Form 8915, Qualified Hurricane Retirement Plan Distributions and Repayments
n. Form 8919, Uncollected Social Security and Medicare Tax on Wages
o. Form 8930, Qualified Disaster Recovery Assistance Retirement Plan Distributions and Repayments.
If you have passed this battery of tests, here is how you prepare the tax return to be sent to the Internal Revenue Service.
1. Complete your name, address, and social security number and the same information for your spouse if married filing a joint return.
2. Complete the line items as they apply to you. This means that on any lines that you complete that require a schedule or form be attached, make sure to attach that form or schedule.
a. Form 1040EZ, lines 1-9b. Do not complete lines 10-13. Joint filers need to show separately the income belonging to each spouse on line 6.
b. Form 1040A, lines 1-27 and lines 29-33, 36 and lines 38-43. Do not complete line 28, 30, 34, 35, 37, 41a, 43 and 45-49. Joint filers need to show separately the income belonging to each spouse next to line 27.
c. Form 1040, lines 1-43 and lines 45-70. Joint
filers need to show separately the income belonging to each spouse next to line 37, Adjusted Gross Income. IRS will compute line 44. Do not complete line 54- 55, 60, 71-76.
3. Enter your federal income tax withheld from forms W-2, box 2 or 1099, box 4 on the applicable for federal income tax withheld.
a. If estimated tax payments were made, enter these payments as follows:
i. Line 38 for 1040A filers
ii. Line 62 for 1040 filers
4. If claiming the Credit for the Elderly and Disabled, attach Schedule R and enter "CFE" next to line 30 for 1040A filers or line 53 for 1040 filers. In addition, remember to check the appropriate box on the Schedule R, Part 1 for your age and filing status. If applicable, complete Parts 2 and 3, lines 11 and 13.
5. If claiming the Earned Income Credit, enter "EIC" next to the line for the Earned Income Credit.
a. Form 1040EZ filers, Line 9a. Nontaxable combat pay, Line 9b
b. Form 1040A filers, Line 41a. Nontaxable combat pay, Line 41b. If you have a qualifying child, you must complete Schedule EIC, Earned Income Credit and enter the social security number for each qualifying person.
c. Form 1040 filers, Line 64a. Nontaxable combat pay, Line 64b. If you have a qualifying child, you must complete Schedule EIC, Earned Income Credit and enter the social security number for each qualifying person.
6. If claiming the Making Work Pay Credit, enter "MWPC" next to the line for the Making Work Pay Credit.
a. Form 1040EZ filers, Line 8.
b. Form 1040A filers, Line 40. Attach Schedule M, Making Work Pay Credit. If either you or your spouse received nontaxable veteran's disability or death benefits, enter "VA" next to line 40. If either you or your spouse received nontaxable combat pay, did not file Form 8812, and did not enter an amount on line 41b, enter "NCP" next to line 40.
c. Form 1040 filers, Line 63. Attach Schedule M, Making Work Pay Credit. If either you or your spouse received nontaxable veteran's disability or
death benefits, enter "VA" next to line 40. If either you or your spouse received nontaxable combat pay, did not file Form 8812, and did not enter an amount on line 41b, enter "NCP" next to line 40.
7. Attach your Forms W-2 and 1099s that show federal income withheld.
8. If you want to designate another person to speak to the IRS on your behalf regarding the return, check yes in the third party designee area of your return and enter the individual's name, phone number, and their five digit personal identification number (PIN).
9. Sign, date your return, and enter your occupation. If a joint return, both must sign. Enter your daytime phone number to allow IRS to contact you if needed.
10. The return must be mailed. Mail the return to the Service Center that services the area in which you live. This information can be found in the instruction book for your form or at www.irs.gov.