Tax Return Form W-2 Form 1099-INT Form 1040EZ Dependent Deduction Social Security Number Taxable income
A tax return is a set of forms that taxpayers use to calculate their tax obligation- which is how much income taxes you owe for the previous work year. You file a tax return every year! The purpose of a tax return is to calculate your taxable income to determine your taxobligation.
Salary or wages Tips Investments/Capital Gains Interest Jobs paid in cash Lottery winnings Your Aunt Sue gave you $2000 for your birthday, is this taxable income? No, you are not required to pay taxes on gifts unless they exceed the amount allowed by the government. ($13,000)
1. Form W-2: a summary of your earnings and withholdings for the year. CComes from your employer MMust be provided by employers by January 31 2. Form 1099-INT: a statement of the interest your bank paid on your savings for the year.
1.Label (Identify yourself) 1. Name & Address 2. Social Security Number – a unique number assigned to you by the federal government. Memorize this number, you will have to write it on many official documents. 2.Income 1. Works you through to your taxable income-the income figure that is used to determine your taxes. 3.Payment and Tax 1. Federal withholdings + (EIC) = Total Payment 2. Tax- use table to calculate your total tax for the year
4. Refund or Amount you Owe Calculated 1. Refunds can be deposited electronically 5. Sign Here 1. Signature, Date & Occupation (your signature declares the information is true) 6. Check for Accuracy & File your Return by April 15 th
You must calculate and file your tax return by April 15 th for the previous year’s income. For Example: For the work year January 1, 2010- December 31, 2010 W-2 Form provided by employers by January 31, 2011 Form 1099-INT provided by banks by January 31, 2011 Tax returns due to IRS BY April 15, 2011
All individual tax payers must use one of the following three basic forms for filing a federal income tax return: 1. 1040 2. 1040A 3. 1040EZ Most young people qualify to use the simplest form which is the F0rm 1040EZ. When you are older and your financial life is likely to be more complicated- you will use a 1040 or 1040A. These forms allow you to itemize deductions to reduce your taxable income. Deductions are expenses you can legally subtract from your income before calculating your taxes.
You may file your tax return online. Biggest advantage- you get your refund faster. FAST SLOW On-line returns take 3-4 weeks to process Snail mail returns can take 6 weeks or more.