Tax Basics

Who’s required to file?

Income tax codes are ever changing and can be quite daunting to delve into. ATC tax preparation pros use three key tax rules to determine if you are required to file a personal tax return. By using our tax preparation services, you’ll be able to simplify and speed up your tax filing process. Let’s go through the tax basics and updates.

First, let’s look at the three key pointers that determine whether or not you are required to file for your return.

If your gross income is above a certain level you are required to file a federal tax return. Depending on your filing status, your age, and type of income you’re reporting that level can vary quite a bit. Your gross income includes all income that you receive in the form of money, goods, property, and services.

If you are age 65 or older on the last day of the tax year, you are allowed a higher amount of gross income than other taxpayers before you are required to file a return. By visiting your nearest ATC center and talking to our tax preparation service pros, you can learn more about the different exemptions based on the age bracket you fall under.

Figuring out your filing status is the first step in determining your filing requirement and your standard deduction. There are distinct differences in the filing criteria that come with each filing status. Our skilled teams of tax preparation professionals are ready to help you understand the subtleties.

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Filing StatusAgeIncome
Single
Under 65
65 or Older
$12,000
$13,600
Head of House hold
Under 65
65 or Older
$18,000
$19,600
Married, filling jointly
Under 65 (both spouses)
65 or Older (one spouses)
65 or Older (both spouses)
$24,000
$25,300
$26,600
Married, filling separately
any age
$5
Qualitying widow(er)
under 65
$24,000
With dependent child
65 or older
$25,300
Self-Employed
any age
$600

 

The standard deduction is a dollar amount that reduces the amount of income subject to tax. You cannot take the standard deduction if you are claiming itemized deductions.

The amount of standard deduction is based on a taxpayer’s filing status. The standard deduction amount can change from year to year depending upon inflation.

Higher Standard Deduction

There is an additional deduction amount for taxpayers age 65 or older, are blind, or both.

The additional amount for age will be allowed if you or your spouse is age 65 or older on the last day of the tax year. The IRS considers you 65 on the day before your birthday.

The additional amount for blindness will be allowed if you or your spouse is totally or partly blind on the last day of the tax year.

Filing StatusAmount
Single
$12,000
Married filing joint returns/Qualifying Widow(er)
$24,000
Head of Household
$18,000
Married, filing separate return
$12,000
Dependent standard deduction minimum
$1,000-$12,000

 

Personal exemptions were eliminated in 2018.

Unmarried FilersMarried FilersRate
Over
But Not Over
Over
But Not Over
2018
$0
$9,525
$0
$19,050
10.0%
$9,526
$38,700
$19,051
$77,400
12.0%
$38,701
$82,500
$77,401
$165,000
22.0%
$82,501
$157,500
$165,001
$315,000
24.0%
$157,501
$200,000
$315,001
$400,000
32.0%
$200,001
$500,000
$400,001
$600,000
35.0%
$500,001
or more
$600,001
or more
37.0%

Tax rate schedules help you estimate your federal income tax. The tax tables are based on your expected filing status.

The actual amount of your income tax is figured on Form 1040, 1040A, or 1040EZ

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Have you heard about child tax credit?

Here is a short checklist for you to know and learn everything on how you and your kid can qualify for the child tax credit. Click here: https://t.co/DjQYtj7rCL

Have you heard about child tax credit?  Here is a short checklist for you to know and learn everything on how you and your kid can qualify for the child tax credit. Click here: https://t.co/DjQYtj7rCL

Friday Fun Fact

Form 1040 has been replaced with a new look. The New Tax Form is now Postcard-Size reducing from 79 lines down to 23 lines.

The goal is to simplify and for the millions of taxpayers could save a bit of time on their filings this year.

Do you agree on thi

Friday Fun Fact  Form 1040 has been replaced with a new look. The New Tax Form is now Postcard-Size reducing from 79 lines down to 23 lines.  The goal is to simplify and for the millions of taxpayers could save a bit of time on their filings this year.  Do you agree on thi

SPECIAL THANK YOU: to all the wonderful customers we've served over the years (150K+ tax returns filed). This year we got over the 10,000 tax returns mark. It is truly a pleasure and a privilege and we are most grateful to ALL of YOU - our valued customers!

SPECIAL THANK YOU: to all the wonderful customers we've served over the years (150K+ tax returns filed). This year we got over the 10,000 tax returns mark. It is truly a pleasure and a privilege and we are most grateful to ALL of YOU - our valued customers!

Our ATC tax experts are ready to assist you all the way. Get in touch and connect with us right now.

Find your nearest ATC office and make an appointment today.

https://t.co/1sza246SWm

Our ATC tax experts are ready to assist you all the way. Get in touch and connect with us right now.  Find your nearest ATC office and make an appointment today.  https://t.co/1sza246SWm

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Tax Returns get audited every year.

Get Accuracy, Assistance, and Audit protection---the ATC triple promise that your return will be done right. And will be right by your side if you are audited by the IRS.

1.1 M 
Tax Returns get audited every year.  Get Accuracy, Assistance, and Audit protection---the ATC triple promise that your return will be done right. And will be right by your side if you are audited by the IRS.

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