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1040ez Tax Table Form: What You Should Know

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Tax brackets and how they may affect you. We will be discussing this topic today on the Heritage Wealth Planning YouTube channel. The tax brackets have changed since last year's filing deadline in April 2019 due to the Tax Cuts and Jobs Act signed by President Trump in December 2017. If you have already filed your taxes for 2019, or if you plan to file an extension, you are still under the 2019 rules. It is important to understand the new tax brackets and standard deductions as they play a significant role in various financial planning aspects such as retirement planning, investment planning, and college loan planning. Everything revolves around your Form 1040, which we will review in detail, including the adjustments for 2020. Currently, we are using software called RightCapital for demonstration purposes, which provides a visualization of the 1040 form. However, please note that the IRS has already announced changes to the 1040 form for 2021 towards a more simplified version. Line item 37, which represents adjusted gross income (AGI), may have different changes next year. For now, let's focus on understanding your tax bracket, which is based on your taxable income. Your taxable income is calculated by subtracting your standard deductions and any exemptions from your adjusted gross income. Line 37 represents your adjusted gross income, while line 43 shows your taxable income. Your tax amount is indicated in line 44. It is beneficial to familiarize yourself with these line items to gain a better understanding of your tax situation.