Presentation on theme: "Banking Complete form 1040EZ. Complete form 1040A."— Presentation transcript:
1 Banking Complete form 1040EZ. Complete form 1040A. 4/1/20177-4 FORMS 1040 EZ AND 1040AOBJECTIVESComplete form 1040EZ.Complete form 1040A.Chapter 1
2 Key Terms Form 1040EZ Form 1040A Form 1040 dependent exemption itemize standard deduction
3 Example 1Elizabeth Allison is a food editor for a magazine. She has received a W-2 form from her employer and a 1099 form from her savings bank. What is Elizabeth’s taxable income for the year if she files as a single taxpayer?
4 What is Elizabeth’s taxable income? Example 2What is Elizabeth’s taxable income?What is Elizabeth’s tax?
5 EXAMPLE 3Does Elizabeth get a refund or owe the government money? In either case, determine that amount.
6 CHECK YOUR UNDERSTANDING Leo is filling out his 1040EZ form. His employer withheld $12,907 in federal taxes. He has calculated that he owes $13,952. Does he get a refund or owe money? In either case, what is the amount?
7 How many exemptions can Mr. and Mrs. Omar claim? EXAMPLE 4How many exemptions can Mr. and Mrs. Omar claim?
8 EXAMPLE 5Determine the Omars’ adjusted gross income. They received $987 interest on bank deposits and $1,200 in stock dividends.
9 Determine the Omars tax for the year. EXAMPLE 6Determine the Omars tax for the year.
10 EXAMPLE 7Do the Omars get a refund or owe the government money? In either case, determine that amount.
11 CHECK YOUR UNDERSTANDING Suppose that Kenya had an additional $50 withheld from each of his biweekly paychecks. How would that change the amount reported on his W-2 form? With the additional money withheld, would they have gotten a refund or owed the government money?