FEDERAL INCOME TAX CHOICE TABLE FEDERAL INCOME TAX CHOICE TABLE

FEDERAL INCOME TAX CHOICE TABLE FEDERAL INCOME TAX CHOICE TABLE 1. Assume that your W-2 form shows a salary of $30,000 last year. It shows income tax withheld of $5,000. A Form 1099-INT reports $500 in interest. You salary and the interest were your only two sources of income last year. You are not married, and do not have enough deductions to make it advantageous to itemize. Based on this information, indicate the tax form below which should be used. Study the chapter "Which Form Should I Use?" at the IRS Web site before making your choice. q q Form 1040EZ, Form 1040A, Form 1040 Justify your choice, citing some information provided at the IRS Web site under the topic, "Which Form Should I Use?". 2. Using the information provided in #1, complete a quickie tax calculation at the e1040 Web site. q Results of quickie tax calculation: Fill in the appropriate blank. Tax refund Tax owed q q Should a new W-4 be filed? Justify your decision. 3. Go to the IRS Web site. q q To help you determine whether you personally are required to file a return, click on "Do I Have to File a Return?". As you study this topic, notice that you must determine whether your parents can claim you as a dependent before you can ascertain whether you have to file a return. Are you required to file a return? Justify your decision, explaining specifically upon what information from the chapter, "Do I Have to File a Return?" you based your decision. 4. If you found in #3 that you are required to file a return, choose the form you should file. q q Should you file a Form 1040EZ, 1040A, or 1040? Justify your choice based upon the information provided under the topic, "Which Form Should I Use?" at the IRS Web site. http://www.obu.edu/business/arye/fcg/fedinctaxchoicetable.htm (1 of 2) [2/4/2002 2:33:08 PM] FEDERAL INCOME TAX CHOICE TABLE 5. Now that you have decided whether you have to file a federal income tax return, and selected the appropriate form to use in the event you do, you have become concerned about state income tax. Search the Web to find the Web site for your state's income tax department (The tax department in Arkansas is called the Department of Finance and Insurance.), and at the site find a link to state income tax forms which could be downloaded and printed. If you live in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, your state does not have a state income tax, so perform a search for a link to Arkansas state income tax forms. Do the same if you are an international student. A suggestion: When performing Web searches, you may find the Dogpile Web site helpful. At Dogpile, you can type your search words or phrases, and the site instead of using just one search engine (like Yahoo, for example) will use all the major search engines to perform your search. q q q q When you have found a site from which income tax forms for your state can be downloaded, provide the following information: Name of your state: Name of the Web site: Address of the Web page: http://www.obu.edu/business/arye/fcg/fedinctaxchoicetable.htm (2 of 2) [2/4/2002 2:33:08 PM]