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					THE 1040-EZ FORM
 Most people have an accountant do their
  taxes.

 But you don’t need an accountant if:
     You are single.
     Received a W-2 Form.
     Received a 1099-INT Form
     Made less than $1,500 from interest.
 You can do YOUR own taxes. For free!
 All you have to do is use Form 1040-EZ.


 Go to www.irs.gov  and you can download it.
  You want to download the PDF file that has the
  form AND the instructions.

 It’s also available at libraries.
 What is the 1040-EZ form?

 The 1040 Form is what you use to determine if you owe
  tax or get a refund.
    You send the completed 1040 form to the government to tell
     them how much money they owe you…..
    OR….
    You send the completed 1040 form with the money you owe the
     government.
 The 1040 EZ is a really simplified version of the regular
  1040 Form.
 The 1040 Form has been around a LONG time…
  since 1913.

 In 1913 Congress ratified the 16th Amendment,
  which gave Congress the authority to tax
  EVERYBODY’S income.

 Here’s what the form looked like in 1913:
 There is a lot of stuff going on in the 1040-EZ
  form.

 Don’t freak out.


 It’s really easy to complete. Let’s go through
  it step by step.
 In our example, we will be David Flores.
 Stuff we need to know:
   David is an employee at a music store in Chicago.
   He just got his W-2 and 1099-INT in the mail.
   He is single. Watch out ladies!




       David
          (You will do this with Mister Crow)
 First, get your W-2 form:
 Second, get your 1099-INT form:
 We are ready to begin filling out the 1040-EZ!
 Fill out the name and address information:




                       Do you want to donate to
                   a Presidential Election Campaign?
 Line 1: Enter Box 1 from your W-2.
 Line 2: Enter Box 1 from your 1099-INT.
 Line 3: Don’t worry about this line.
 Line 4: Add up Line 1 and 2.
   This is your AGI – (Adjusted Gross Income)
 Line 5:
   Today, if you were to fill this out you would be a
    dependent since you are in high school.
   However, this example uses David Flores. David is
    not a dependent. We will enter $8,950.
 Line 5:
   What is $8,950? Why are we entering this?


   $8,950 is the “Standard Deduction.” The
    government is trying to help you out.

   The Standard Deduction lessens the amount on
    which you get taxed.

   For example, if you make $28,950 you will not get
    taxed on that entire amount. You get to deduct
    $8,950. $20,000 will be the amount you are taxed
    on.
 Line 5:
   Interestingly, if you make less than $8,950 you don’t
    have to pay ANY tax.

   Should you still file a 1040-EZ?


   Heck yeah! If the government withheld any money
    from your paycheck they have to give you a refund.

   But they won’t give you a refund unless you file the
    1040-EZ!
 Line 6: Subtract Line 5 from Line 4.
   $54,556 - $8,950 = ?
   This is the amount on which you have to pay taxes.
   This is your TAXABLE INCOME.
 Line 7: Enter the amount the government
  withheld. (Box 2 from your W-2.)




                                            36
 Lines 8 and 9: Don’t worry about these lines.
 Line 10: Enter the amount from Line 7.
   This is the amount of TAX you have already paid.
 Line 11:
   There is a packet that usually comes with the 1040-
    EZ form.
   On page 28 you can find a tax table that will lists the
    TAX you owe for your specific TAXABLE INCOME.
   It looks like this:
 Line 11:

   David’s TAXABLE INCOME is on line 6.


   What is his TAXABLE INCOME?
 Line 11:

   David’s TAXABLE INCOME is on line 6.


   What is his TAXABLE INCOME?




                    $45,606
 Line 11:

   We now need to find what the tax for $45,606 will be
    according to that tax table.

   Keep in mind that David is single.


   What is the TAX for $45,606?
 Line 11:

   Enter this
    amount on
    Line 11.
Examples: find the tax

 Taxable income
  6,735
  5,025
  4,259
 Line 12:
   Is Line 10 bigger than Line 11?
   If Yes, subtract Line 11 from Line 10.
   In our example Line 10 is bigger.
     $8435 - $7750 = ?


   This is your refund!
 Line 12:
   If you are getting a refund you can have your money
    deposited directly to your bank account.
   You have to enter the routing number and account
    number.
 Line 12:
   If you are getting a refund you can have your money
    deposited directly to your bank account.
   You have to enter the routing number and account
    number.
 Line 13:
   Is Line 11 bigger than Line 10?
   If Yes, subtract Line 10 from Line 11.


   Uh oh!! This is how much tax you owe!
   Luckily, David is getting a refund in our example. We
    leave Line 13 blank.
 Sign the Form:
   Sign and date the appropriate parts of the rest of the
    form.
   Congrats! You are done!
 Now, once you get your refund you have make
  some tough choices:

   Go on a Road Trip?



   Invest the money?



   Take Mister Crow out for dinner for helping you with
    your taxes?
SAVE YOUR TAX RETURN FORM
 Save to your Drive!
 Taxes
 Classwork
 DavidFlores1040EZ

 YOUR TURN: Worksheet
  Use your own Name and Address

				
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posted:11/30/2011
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