Line 40: Earned Income CreditYou may be eligible to claim the Earned Income Credit if:
- Your Adjusted Gross Income on Line 21 is less than $12,120 (for single people) or less than $14,120 (for Married people) and you have no dependents.
- Your Adjusted Gross Income on Line 21 is less than $36,348 (for Head of Household) or less than $38,348 (for Married people) and you have qualifying dependents.
- You and your spouse (if married) cannot be claimed as a dependent by someone else.
Tax Tip If you earned combat pay, you can choose to include your combat pay in calculating your EIC. Calculate your earned income credit both ways (with and without combat pay) and use the method that results in the higher EIC amount. Combat pay is found on your W-2 statement, box 14, code Q. If including your combat pay for calculating your EIC, put your combat pay amount on line 40b.
Line 41: Additional Child Tax Credit.
- The additional child tax credit is the amount of your child tax credit in excess of your tax liability. This additional amount may result in a higher tax refund.
- Use your calculations on the Child Tax Credit Worksheet in the instruction booklet, page 38, then calculate the additional child tax credit on Form 8812 (PDF).
Line 42: Credit for Federal Telephone Excise Tax PaidYou can claim a standard refund of the telephone excise tax. You can also claim a refund of your actual telephone taxes. The standard amounts are determined by the number of personal exemptions you are claiming on line 6d. Here are the standard refund amounts:
- $30 if you are claiming 1 personal exemption.
- $40 if you are claiming 2 personal exemptions.
- $50 if you are claiming 3 personal exemptions.
- $60 if you are claiming 4 or more personal exemptions.
Line 43: Total Payments
- Using a calculator, add up the figures on lines 38, 39, 40a, 41, and 42.
- Put the total figure on line 43.
- This figure represents the total amount of money that has been applied toward your tax liability for the year. This figure will be used to calculate how much of a refund or balance due you have.
Lines 44 or 47: Refund or Balance Due
- Using a calculator, enter your total payments from line 43, and then subtract your total tax from line 37.
- If the result is less than zero (a negative number), then you have a tax refund. Put the answer (ignoring the negative sign) on line 44.
- If the result is more than zero (a positive number), then you have a balance due. Put the answer on line 47.
- If the result is exactly zero, then put "-0-" (zero) on lines 44 and 47. Your payments exactly met your tax liability, and you have no refund and no balance due.
If you have a refund, be aware that federal tax refunds expire three years from the original due date of the tax return under the statute of limitations. Refunds from the year 2006 expired in the year 2010. However, the IRS does not charge penalties on a late return if you overpaid your taxes.
If you have a balance due, be aware that the IRS will add penalties and interest to the balance due. The IRS will notify you by mail what their calculations of the penalties and interest are.
Line 45a and 46: Refund Amount and Estimated Tax Payment
- If you are getting a tax refund, you can choose how much of the amount on line 44 you want refunded to you, and how much you want to be applied to next year's estimated tax payments.
- This line on the tax form is not relevant to late-filed returns. You can skip this line.
Lines 45b, c, and d: Direct Deposit
- If you are getting a refund, the amount on Line 45a can be deposited directly to your checking or savings account.
- However, the IRS does not issue direct deposits on late-filed returns. You can skip this line.
Line 48: Estimated Tax Penalty
- If the amount on line 47 (your balance due), is $1,000 or more, and is more than 10% of your total tax shown on line 37, then you may have a penalty for not paying enough estimated taxes.
- Calculate your penalty using Form 2210 and related instructions (PDF) after reading carefully the instructions for line 48 in the instruction booklet on pages 54-55.
- The calculations on Form 2210 can be rather complicated. If you prefer, you can leave line 48 blank, and the IRS will calculate your estimated tax penalty and send you a notice. There will be no interest charged on this penalty amount if you pay the amount in full by the date shown on the notice you will receive from the IRS.
Where to Mail Your ReturnYou will need to mail your 2006 Form 1040-A to the IRS, as tax returns for previous years cannot be electronically filed.
Use the most current mailing address for sending tax returns to the IRS. The IRS provides a list of Where to File Address for Form 1040-A.
In some circumstances, you may need to mail your tax return to a different address than the one listed on that page. Call the IRS at 1-800-829-1040 to ask them where your tax return should be mailed.