Objectives

At the end of this lesson, using your resource materials, you will be able to:

• Identify the following types of payments and credits that are applicable for most low- and moderate-income taxpayers:
  • Federal income tax withheld from Forms W-2, Wage and Tax Statement
  • Federal income tax withheld from Forms 1099
  • Estimated tax payments and amounts applied from the prior year's return
  • Homebuyer credit (first-time homebuyer and long-time resident)—expired for most taxpayers; military and certain federal employees serving outside the U.S. have extra time
  • Amount paid with a request for an extension to file
  • Excess social security and tier 1 RRTA tax withholding
• Report these payments and credits correctly on the taxpayer's return

Estimated time to complete: 20 minutes