1. Paying Your Federal Taxes 1040

2. Paying Your Taxes

3. Do Now Try to complete form 1040 on your own. Form 1040 is used to file your return to the IRS. It reconciliates your tax liability from your actual taxes withheld.

4. Famous People Convicted of Tax Evasion Martha Stewart OJ Simpson Nicolas Cage Marc Anthony Richard Hatch: The Winner of Survivor Was given a dose of reality and a 3 year jail sentence

5. Once You accept a Job you fill out a W-4 You use W-4 Employee's Withholding Allowance Certificate Form to establish your withholding allowances for Federal income taxes.

6. W-4 Determines how much Federal tax you would like withheld. If you claim 0 or 1 = likely to receive a REFUND because too much taxes were withheld If you claim 2 = Takes less money out of your paycheck: potentially OWE money. Anything higher = likely to owe money and possibly be required to resubmit your W-4 Form.

7. Line 5 is where you write your withholding allowances. Higher # = less $ withheld Lower # = more $ withheld

8. W-2 Form W-2 reflects all taxable wages you received during the calendar year and all taxes withheld from those wages. The form serves as an annual report that enables you to file your personal income tax return with the Internal Revenue Service.

9. Receive W-2 From Employer by Jan 31 st W-2 Lists your wages (Box 1) and the amount of Federal Income tax withheld. (Box 2) Only use box 1 and box 2 to fill out a 1040 FICA = Social security and Medicare taxes withheld 7.65 % are payroll taxes and are withheld and paid every time you have a paycheck. Employers are to send out payroll taxes Federal Income tax is withheld every payroll, but it is only filled April 15 th.

10. Paycheck example

11. 1040 EZ Similar to the 1040 income tax form, 1040EZ is a faster and easier way to file your taxes. This form is only eligible for people with income less than $50,000 and interest income of $400 or less.

12. Federal Income Tax Return 1040 EZ is the simplest form. Cannot use form if you have mortgage payments, or charitable contributions, or interest over $1500. All you need to complete a 1040EZ are your W-2’s and 1099s (usually interest payments)

13. Manual Return Can file manual pen and paper return Or more commonly use an electronic tax software program like TurboTax, or TaxAct. You can also submit your return to an accountant or H&R Block to complete.

14. 1040 EZ Step 1: Add up your W-2s. Add up the totals on Box 1 and put it on line 1 of the return. Step 2: Add 1099INT interest on line 2 Step 3: put a zero for unemployment compensation.