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Okay in this example I'm going to use James B Jones who worked for the John L Smith construction company in Austin Texas and James earned thirty four thousand two hundred and ten dollars and twenty five cents which we see in box one he also had three thousand eight hundred and ten dollars in tax withheld from his income now we go to line one and we put thirty four thousand to ten and we drop the pennies since we're rounding down and we put that on line one James also had five hundred and ten dollars in taxable interest on his form 1099 int so we put that on line two he did not have any unemployment compensation or Alaska funds dividend so that's line three is zero and when we add lines one two and three we get thirty four thousand seven hundred and twenty dollars going to section five since James is single we put eight thousand seven hundred and fifty dollars on line five and we note that he is not claimed by anyone else as a dependent so he's completely eligible for the eight thousand seven hundred and fifty dollars and we subtract line five from line four and this gives us our taxable income and that amount is twenty five thousand nine hundred and seventy dollars