Video instructions and help with filling out and completing What Form 2220 Taxpayers

Instructions and Help about What Form 2220 Taxpayers

It's Brian Preston the buddy guy go ahead and bring up the traditional 2017 1040 here's what I think is interesting when you look at the the 2017 form this is what it looked like four years really for the probably the last thirty years there's been some changes added a few line items but it starts off if you've got your your basic information type your name social security number your dependents then you go through your income adjustments to your income page - we had our taxes and credits and then you had your other taxes that's where they caught you up on self-employment taxes alternative minimum tax is and those type of things all the things you dreaded and then about two-thirds of the way down the page you had your payments that's where you add you all your tax withholding from your paycheck you had your estimated tax payments extension payments it was all right there and then at the bottom you either got told hey you owe money or you get a refund that's right all here on two pages so when a prospect or brand-new client when they gave us when I said just give me your first two pages of your tax return plus give me your schedule a I could pretty much tell you what you had going on in your financial rush and I don't want to say it was simple because I don't think anybody would argue that our tax code was similar but again there were some familiarity with it once you seem solid ated exactly once you get the flow down you could get a lot of information very very quickly from the original tax return so that's old out with the old in with the new bow bring up the 2018 tax return so here's what I want you to notice we didn't cut off the bottom half of that page scroll down bow show them the bottom of the second half of that form oh you just mean all the blank white space at the bottom of the form I think the designer of this thing was an owner of a paper company because I mean look at it it is now half the page is unused so page 1 now on the 1040 for 2018 is just go have your basic your personal information it's going to have your name your social security number your dependents and your signature line so they brought page 2 to page 1 on the signature no other information besides your personal information page 2 it's just going to be a summary of what you had going on whether it's your income your way ages and then basically if you overpaid or if you're getting a refund it's all right there and if there's a whole QA that the IRS you know provided is that people say why did they redesign the forms completely and they said look we want instead of having a 1040 EZ instead of having a 1040 a instead of having a 1040 right we want to have just one form that had the flexibility for us the building blocks for us to make just a one teacher everyone who files no matter someone starting out or somebody's got the crazy complicated tax situation to start with the same base right they were hoping for so it's the same in their terminology was building blocks building blocks they won't everybody have the same building blocks so doesn't matter if you're super sophisticated or ultra easy you're going to file the first two pages okay so that that kind of makes sense I just don't understand the spacing in the blankness at the bottom of the pages so and then here's what here's where additional details added because in addition to changing form 1040 they now added schedule one two three four five six Brian you must be confused because I know schedules and there's like schedules a and B and schedule have numbers are like schedule schedule one two three four five and six and I want to kind of go through each of these really quick kind of give you a tour so schedule one if you could pull that up is the additional income and adjustments to income now what you'll notice is this stuff looks like the old 1040 page one you got to have your additional income that your refunds that your business income capital gains those type of things and then you'll also have adjustments to income this is all the stuff at the bottom like educator expenses the the IRA contribution your are a deduction your student loan interest all those things you're used to but instead of being on page one at the bottom half of the return of your 1040 it's gonna be schedule one and that's all schedule one is is those two pieces actual income and adjustments in it comes now that used to be the bottom of the page 1040 so then at least it takes up two-thirds of the page because when you see schedule two with the title of tax this one cracks me up I mean this one they couldn't they couldn't have brought this and scheduled one scheduled one and two combined because there just comes form all that's on this form called tax schedule - is alternative minimum tax and then the excess premium return where if you made too much money with the Affordable Care Act you know because you're getting credits on your your insurance premiums if you made too much money this is where you'd pay it back right plus your altar minimum tax this is going to be your least favorite form if you're doing your taxes everything because this means you're an om so not everyone is gonna so everyone is gonna have the first page of the 1040 most folks are gonna have