Every year the dreaded tax season comes around, and most people will pay to get their taxes done for them thinking it is a complicated process, but the average American only needs to fill out a 1040a which is a two-page form that is quite easy to fill out. Note that all following information is based on 2009 tax information.
Gather All Tax Documents and Complete Personal Information Section on Form 1040A
When preparing to complete a 1040a gather up all W-2's and any other tax documents that have been received. Note that people who work from home as contractors often receive Form 1099 to document their earnings. Next, obtain a copy of the instructions booklet for the 1040 from an IRS office or access one online. The booklet is important as it has in-depth description of each line on the form and other tools included. Find a calculator, just a simple one that can add and subtract is fine.
The first section on the form is just basic personal information. Don't worry about needing a label the lines can just be just filled out by hand. The next section is the Filing status. If more than one choice applies, select the one that is lowest tax bracket. Listed from lowest to highest tax bracket the selections are:
- Transfer Funds
- Hardship Funds
- Acuity Funds Canada
- American Funds Break Points
Glossary. This glossary is designed to help you learn more about investing and about the mutual funds, retirement plans and variable annuities offered by American Funds.
- Target Federal Funds Rate Announced By The Federal Reserve