 Apple Form 1040 using LASERT software to populate it. You don't need tax software to follow along, but if you have access to it, it's a great tool to run scenarios with. You could also get access to the Form 1040 related forms and schedules IRS website, irs.gov, irs.gov. Our starting point as usual is gonna be the single filer Mr. Anderson. We don't have any dependents down here to kind of confuse the picture. 100,000 W-2 income. We've got the 12,950 at the standard deduction. The 87,050, we can mirror that over here in our tax formula worksheet, where I'm gonna say the income is gonna be 100,000, pulling over to the first line of the income. 12,9 standard deduction, 87,050, that matching what's on the taxable income. Page two, I'll let the software do the tax calculation, 14774 in this case, 14774, that's where our major focus is, but we have the 15,000 that we're assuming for the withholdings as well. Okay, so let's add some interest here, because that's what we're interested in at this point. So we're gonna go down below. The interest is gonna be pulling in down here where we have the tax exempt interest on line two A and the taxable interest on line two B. If we go over a threshold of 1,500, then we could attach the schedule B or must attach, I should say, the schedule B in that case. So that's the general rule. If we're looking at the form for interest, we're usually looking at an interest income, 1099 INT type of schedule. This might come actually from a financial institution. So you might not have like this whole thing, it might not look exactly the same, but it'll be say 1099 INT on it somewhere generally, and it'll have the same box numbers. And if it's a taxable component, you're gonna have box one, because that's where they'll put the taxable amount. If it's non-taxable, if it's something like tax exempt interest, possibly you're gonna have this box eight down here. These are some of the more common type of calculations of interest. Now for most taxpayers, of course, we would expect the primary source of income if they're in their working years to be W2 income, for example, and then the interest income would be on those investments that they have, usually investments that are outside of even a 401k plan or something. So we would expect that the interest income for most people is not gonna be the most significant part of their income. If they're retired individuals, and they have more money that is invested in earning interest, then you would expect the interest might be larger. Obviously, when we think about interest, we're thinking that if someone has a large amount of interest income, you would expect that they have a significant amount of savings that are saved somewhere, oftentimes would be generally the case. All right, so we can jump to the data input possibly. I'm gonna go to the 1099 interest, and let's say that this comes from a financial institution. I'm just gonna say bank one here, and let's say that we had $500 in interest. Let's just start it up, 500. If I pull on over to the tax return and say, what would happen? We still got our 100,000 W2 income, but now we've got the 5,000. That's the taxable interest income. Notice there's no Schedule B popping up over here because it's not over the threshold of 1,500 to be on the Schedule B. And so that of course increases our taxable income. And so on, I can reflect that on our schedule over here on the income line. Now, I might make another schedule called a Schedule B, which I don't have yet. So I might say, let's make another schedule, and then I'm just gonna call it a Schedule B. Now, in this case, I don't have a schedule. I'm not using the Schedule B on the tax return, but I'm gonna call it a Schedule B interest and dividend, because, and then this is where I'll pull the interest and dividend over to page one, whether it's over the threshold or not to actually have a Schedule B populated on the tax return. I'm gonna select this whole thing, right-click the worksheet. I'm gonna format the cells and just build this as we go. Currents here, I'm gonna do this fairly fast because it isn't an Excel class, but I think it's useful to see how we construct this thing as we go. None here, I'm gonna say no decimals and okay. Scroll in a bit. This is gonna be, I'm gonna say this is interest and dividend, dividend, boom. And so let's make the whole thing like bold too. And I'm gonna make this black and white, home tab, font group, making it black, making it white, bam. And then the first part I'm gonna say this is interest. And I'm really just gonna be focusing in on the taxable interest that's gonna pull in to our tax calculation. I'll make this a little bit larger. And so I'm gonna leave some space here for like a few institutions that could be input because I might have multiple financial institutions. I'm gonna make that blue. So we'll go up top and say font, making it blue. If you don't have that blue, it's in the more colors. Standard, I'm using that blue. You don't have to use that blue, by the way. I just use it because I like it. Home tab, font group, border dropdown. And there's the borders. And so this is gonna be bank one, put the 500. And I'm gonna sum that down here for the total. Total interest. And sum it up. And so we just put a little worksheet together so we can recalculate this. Let's check the spelling of it. Check the spelling. Why don't you? Because you can't spell with nothing, man. It's horrible. Look at that. What are you talking about? I spelled everything right. Any case, we're gonna pull that to page one. Let's pull that on over to page one. And double click on the income line. And I'm gonna go to the end of it. And now we're gonna add this other schedule. Just pulling into this line one. And that's gonna be the schedule B. And I'll say the total interest. Let's pull that in. I'll probably have to modify. Let's actually modify. You're gonna modify it and attach it to the stuff. For that right now, I should modify that a little bit differently. That's gonna be the total interest. And then I'm gonna have dividends. Dividends. And let's make that black and white up top. Black and white. And then let's say that we have our space for the dividends we can have here. Boom. And let's make this bordered and blue. And then I'm gonna say this is total dividends. Total dividends, which will be the sum of this outer column. And then I'm gonna say, I'm gonna have a line that says total interest. And dividends. And this will be the total of the outer column. Interest and dividends. So that line one on the form 1040 should pick both those up. So I'm gonna delete this last bit. And I'm gonna say, I wanted to pick up that bottom line, the bottom line.