IRS 2006 1040 Instructions
- 1). Print out the 2006 form 1040 from the Resource section. Download any schedules or other forms you may need from Forms, Instructions, and Publications for 2006 in the Resource section.
- 2). Complete the first section of the 2006 tax return. Information needed includes your name, spouses name (if it applies), Social Security numbers for both and address. Check the box for your filing status. Under exemptions, check the box for yourself and a spouse if you have one to claim. Enter any dependents you have to claim. You need to enter the dependent's name, Social Security number and relationship to you. Check the box next to each dependent if that person is being used for a child tax credit. Enter the number of exemptions on line 6d.
- 3). Enter your income in the next section. Include W-2 forms, taxable interest, taxable refunds, capital gains, IRA distributions and unemployment compensation. If you were self-employed, you enter your business income from Schedule C on line 12. If you have any other income such as distributions from a health savings account or prizes, money awards or gambling winnings, enter the amount on line 13. Add lines 7 through 21 together and enter this amount on line 22 for your total income.
- 4). Enter any adjustments you may have to total income to find your adjusted gross income in the next section. Adjustments can include qualified moving expenses (form 3903), self-employment health insurance, penalties on early withdrawals from savings, alimony paid and student loan interest deductions. Add lines 23 through 35 together and enter on line 36. Subtract line 36 from line 22 to find your adjusted gross income. Enter this amount on line 37 and 38.
- 5). Complete the next section to lower your tax liability by entering any tax and credits you may have to claim. If you itemize deductions, you must complete Schedule A Itemized Deductions and enter the amount on line 40. If you don't have itemized deductions, use the standard deduction amount for your filing status in the left side margin. Enter this amount on line 40. Subtract line 40 from line 38. On line 42, multiply your total exemptions from line 6d by $3,300 and enter the amount on line 42. Subtract line 42 from line 41 and enter this amount on line 43. This is your taxable income used to find your tax liability.
- 6). Use the 2006 tax table from the 2006 1040 Instruction booklet in the Resource section. Tax tables start on page 67. Look under the column for your filing status at the top of the table and find your taxable income from line 43. Enter the tax amount on line 44. If you have alternative minimum tax, use form 6251 to find the dollar amount for line 45. Add line 44 and 45 together and enter the amount on line 46.
- 7). Complete any entries that apply to you and use the correct schedules or forms. For a child tax credit, you use form 2441 and for elderly care, you use Schedule R. If you qualified for the additional child tax credit, you use form 8901. Add lines 47 through 55 together and enter the amount on line 56. Subtract line 56 from line 46 and enter the amount on line 57.
- 8). Enter any other taxes you may have on line 58 through 62. Add lines 57 through line 62 together and enter this amount on line 63.
- 9). Enter any payments you may have on lines 64 through 71. Line 64 is for federal taxes withheld from W-2 wages and any taxes withheld from 1099 forms. If you qualify for earned income credit, figure the amount using the worksheet on page 50 through 52 from the instruction booklet. Use the earned income credit tables on pages 53 through 59 of the booklet. Add lines 64 through 71 together and enter this amount on line 72.
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Complete the refund or amount you owe sections. Sign and date the form. Enter your occupation and phone number. Send the form into the IRS and they will compute any penalties and interest you may owe if you owed money on your 2006 taxes. Mail the return to the address listed on page 87 of the instruction booklet, which matches the state you live in now.
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