Why?

• Your payroll witholding is usually wrong. When you start your employment, your payroll witholding settings are usually wrong.
• Reduce the amount of taxes you pay by applying “tax credit”
• On flip side, you may have additional income that you did not report, resulting in increased taxes.

Tax returns are due April 15th, 2020.

How to file taxes, three ways

• Manually fill out a 1040, with instructions provided by the IRS
• Software like TurboTax and H&R Block will fill out these forms automatically for you after you answer a few questions, and will file the taxes electronically for you.

How Taxes are Determined

• Federal government uses a progressive tax system.
• “In the 2020 tax year, if you’re single and made between $85,525 and $163,300, you’re in the 24% tax bracket.”
• Regular jobs give W-2 form. Self-employed people have 1099s.
• “For instance, if you gave $2,000 to qualifying charities and nonprofits in 2019, you can deduct that when you do your taxes in spring 2020. (Note that this doesn’t mean that your total tax bill gets reduced by $2,000, but rather that the income figure used to determine your tax bill is lowered by this much—which, in turn, lowers your effective tax rate by some amount.)”

Tax Forms

• 1098-T, Tuition Statement for Education Tax Credits

Income for 2019 tax year

Deductions for 2019 tax year

• Gambling (Ignition)
• Berkeley Grant, Pell Grant

Loose ends

• Renters tax break does not allow mommy to file use me as a tax break.
• Fee Remissions that I receive need to be filed properly.

Vehicle Deduction

San Jose to Santa Rosa: 123 miles To and from 12 times: 12x123=1476 1918 Gambels to Keysight: 5 miles To and from 90 times: 450 miles Total: 2024 Miles 20 MPG, $3.5 dollars a gallon 101.2 gallons, $354.20

• Section 179 deduction: