You could set aside zero dollars and owe nothing, but most everyone will owe at least some tax. You can find the answer to that question on line 56 of your 1040 form. But before you start calculating, it might be useful to take a look at what's going on with taxes in this country.
We’ve set aside some time for us to explain what you need to know about federal income taxes so that you can make an informed decision as to how much money you should set aside for your annual tax liability. The first thing you need to know is the difference between filing in the 1040 format and filing in the 1040A format.
The Standard Deduction
Filing in the 1040 format means you get to take a standard deduction. The basic benefit of this is that you don’t have to itemize your deductions. This is probably why most people who file their taxes this way do so. In addition, the standard deduction is based on your filing status and taxable income.
The standard deduction for single people without dependent children is $4650. That’s on the line 27 of Form 1040. It’s called the “single” deduction because it's for everyone who isn’t married and isn’t legally separated from their spouse.
The standard deduction for married people filing jointly is double that amount – $9250, which is on line 28. For heads of household this amount is $3200, which is reported as Item 1 in Form 1040A. If you don't qualify for one of those forms, don't worry because here's more info.
We’ve set aside some time for us to explain what you need to know about federal income taxes so that you can make an informed decision as to how much money you should set aside for your annual tax liability. The first thing you need to know is the difference between filing in the 1040 format and filing in the 1040A format.
The Standard Deduction
Filing in the 1040 format means you get to take a standard deduction. The basic benefit of this is that you don’t have to itemize your deductions. This is probably why most people who file their taxes this way do so. In addition, the standard deduction is based on your filing status and taxable income.
The standard deduction for single people without dependent children is $4650. That’s on the line 27 of Form 1040. It’s called the “single” deduction because it's for everyone who isn’t married and isn’t legally separated from their spouse.
The standard deduction for married people filing jointly is double that amount – $9250, which is on line 28. For heads of household this amount is $3200, which is reported as Item 1 in Form 1040A. If you don't qualify for one of those forms, don't worry because here's more info.
