1. Refund and Amount Owed Lesson 31

2. 1040 Lines Refund 73 – 75 Owe 76 - 77

3. Calculation Line 60 – Total Tax Due Less Line 72 – Total Payments = Refund or owe

4. Refund options Apply to next year ---- not a good idea Receive it as a check – takes the longest to get Direct Deposit – to your existing checking account or creating a USBank debit card – 10-14 days Purchase Series I Savings Bond – Form 8888 In Multiples of $50 Can be put in several options pg 31-3 Always uses the last account for any adjustments Refund Monitor on Taxwise

5. If Owe Submit the return Amount must be paid by 4/18 Filing an extension does not extend what you owe Forms of payment 1040-V Voucher check or money order Electronic withdrawal -- Hard to make sure it happens Credit Card – will have a fee Electronic Federal Tax Payment System

6. If Can’t Pay Have 60 or 120 days with no user fee Interest and penalties are included if over $1000 Monthly Payments Form 9465 Installment Agreement Request – IRS person can help you prepare this with the client – includes a user fee Extension of time due to hardship Form 1127

7. Exercises and Examples Exercise pg 31-8 Example 31-9 Exercise 31-10

8. Correcting withholding Change W-4 Withholding allowances Caused by change in life: Marriage, children, death, divorce Exact amount: 1. Amount of total tax line 60 2. Divide by number of paychecks 3. Tax Withholding by payperiod (941) 4. Look up the number of allowances that match the amount of tax in number 2