Presentation on theme: "Banking Complete form 1040EZ. Complete form 1040A."— Presentation transcript:
1Banking Complete form 1040EZ. Complete form 1040A. 4/1/20177-4 FORMS 1040 EZ AND 1040AOBJECTIVESComplete form 1040EZ.Complete form 1040A.Chapter 1
2Key Terms Form 1040EZ Form 1040A Form 1040 dependent exemption itemize standard deduction
3Example 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?
4What is Elizabeth’s taxable income? Example 2What is Elizabeth’s taxable income?What is Elizabeth’s tax?
5EXAMPLE 3Does Elizabeth get a refund or owe the government money? In either case, determine that amount.
6CHECK 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?
7How many exemptions can Mr. and Mrs. Omar claim? EXAMPLE 4How many exemptions can Mr. and Mrs. Omar claim?
8EXAMPLE 5Determine the Omars’ adjusted gross income. They received $987 interest on bank deposits and $1,200 in stock dividends.
9Determine the Omars tax for the year. EXAMPLE 6Determine the Omars tax for the year.
10EXAMPLE 7Do the Omars get a refund or owe the government money? In either case, determine that amount.
11CHECK 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?