Question about tax return

[Polak]

Not the ideal forum to ask this I know, but I am not really a part of many forums and haven’t found a clear answer to my specific question online.

I haven’t normally had to deal with tax returns in the past, so am unsure on this.

Do you deduct any amounts that are not supposed to be taxed yourself? In the UK for example, there is a rule for the past tax year that if you earn rent on a property, you can deduct 50% of any mortgage interest payment you make. So do you just subtract that yourself, writing in somewhere that you have done that, or do you put the full amount of rent you earn in there, say how much mortgage interest you pay, and then they subtract it somewhere?

 

[Beryllos]

or do you put the full amount of rent you earn in there, say how much mortgage interest you pay, and then they subtract it somewhere?

Yes, that’s how it works. In US Federal tax returns, typically there are worksheets, formulas, and instructions for each and every deduction, exemption, credit, etc.

It can be confusing. I use tax-preparation software to guide me. I suppose someone who is skilled in accounting and is good at figuring out government forms could do it unaided.

 

[Fauken]

It can be confusing. I use tax-preparation software to guide me. I suppose someone who is skilled in accounting and is good at figuring out government forms could do it unaided.

So do I. I have one of the simplest taxes scenarios to deal with (single, no dependents, no property) and have an engineering degree, and I’m still paranoid about messing up my taxes on TurboTax.

 

[redal]

Yes, that’s how it works. In US Federal tax returns,

Only if eligible for and filing long form 1040

 

[Beryllos]

Yes, one must begin by determining the correct tax return form according to the complexities of one’s financial situation.