If you received Social Security Benefits, then you should have received an SSA-1099 with the total amount paid to you in box 3 and any repaid amounts in box 4. You should receive an RRB-1099 if you received any railroad retirement benefits that were treated as social security.

The total amount of all payments is to be entered on the line next to 6a. You may have to pay taxes on some of your social security. This will depend on the amount of other income and payments received throughout the year. Go to Page 31 of the 1040 Instruction book to figure if any taxes are owed.

If you contributed to a traditional IRA, then use the worksheet in Pub 590-A to figure your IRA deduction. Only the taxable portion will be entered on line 6b. Line 7 is to be used if you sold any capital assets such as stocks or bonds. You should receive a 1099-DIV for these transactions. You generally will need to fill out a Schedule D and Form 8949 unless certain exceptions apply (be sure to check the box on line 7 so the IRS doesn’t think you forgot to submit them… you know… for their leisurely reading pleasure). Form 8949 is to list the sale/disposition of each like kind capital assets (i.e., short-term vs long-term, basis reported vs basis not reported and short vs long term transactions not reported on Form 1099-B which is proceeds from broker and barter exchange transactions).

Remember short-term usually means less than one year and long-term means more than one year. You can use as many Forms 8949 as needed. Once you have segregated and listed all transactions then transfer the totals to Schedule D. Then, complete the summary portion (page 2 of Schedule D) and transfer any gain/loss to line 7 on your 1040. If you have any additional income that doesn’t fit on lines 1 thru 7, then you will need to fill out Schedule 1.

Examples would be gambling winnings; unemployment compensation and even jury duty pay. Yes, you must pay taxes on the tiny amount of money you get for missing work and doing your civic duty by sitting on a jury. Like I said before, IRS wants their cut on every penny you make, literally.

Bet you’ll question picking that penny up off the ground next time. Once you total all the additional income amounts on Schedule 1, line 10, then transfer the amount to line 8 on your 1040. Total the amounts of 1, 2b, 3b, 4b, 5b, 6b, 7 and 8 and enter on line 9. For line 10, go back to your Schedule 1, page 2. This is where you’ll make adjustments to your income. Yes, the IRS actually lets you reduce the amount of income you pay taxes on! Crazy I tell ya!

But it’s for good reason. Examples would be moving expenses for members of the armed forces and educator expenses. That’s pretty cool of them. So, now you just subtract line 10 from 9 and enter on line 11. This is your adjusted gross income. This is an important number. IRS uses this amount to verify your who you say you are.

If all this is just too much, no worries. Many software programs will calculate and do many of the entries for you by just answering some questions. As always, if you’re not sure or not comfortable doing your own taxes, visit your trusted tax professional who will file your taxes accurately and professionally.

Schedule your next tax appointment with Angie Love’s Taxes.