Completing a Form 1040 EZ

 Tax return: set of forms that taxpayers use to calculate their tax obligations ◦ If tax return shows that your withholding wasn’t enough to cover your taxes, you must send remaining to the government ◦ If tax return shows that your withholding more than covered your taxes, then government sends you a refund

 Income is more than wages, it includes: ◦ Tips ◦ Amount earned for odd jobs ◦ Anything from interest  Every part of you income will be TAXED!

 YOU are responsible for the accuracy of the return ◦ Even if you hire a professional

 Form W-2  Form 1099-INT

 Summary of your earnings and withholdings for the year  By January 31, employers must give this to their workers  You should receive one from every employer you had in the year

 When you file your tax return, you must send a copy of your W-2  Your employer also sends a copy to the IRS  If you fail to report your earnings, the IRS will come after you

 Statement of the interest your bank paid on your savings that year  Interest is a source of income – not very much usually – but you’re still adding money to what is already in there

 Your bank must mail this to you as well as a copy to the IRS

 Form 1040EZ  Form 1040  Form 1040A

 To qualify to use this form: ◦ You are single or married and filing jointly with your spouse ◦ You have no dependents (people you support financially) ◦ You and your spouse are under 65 ◦ Neither you nor your spouse are blind ◦ You have a taxable income of less than $50,000 ◦ You earned no more than $1,500 in interest ◦ You had no income other than wages, interest, tips, scholarships, or unemployment compensation

 pdf pdf  Use Form W-2 and Form 1099-INT to it out

 When you are older, your life will be a bit more complicated – own your own house, run small business, invest in stock market, etc.  This form helps itemize deductions (expenses you can legally subtract from your income when figuring your taxes)