1. Taxes for Teens for Mrs Miller’s Seniors
Using the IRS “1040EZ” Form

2. What is tax money used for?
Bridges
Road maintenance
Research
Education
Armed services, national defense, veterans, and foreign affairs
Retirement income for elderly
Social programs
Physical, human, and community development
Law enforcement
Interest on the national debt

3. Voluntary Payroll Deductions
Health Insurance
Retirement Savings

4. Required Payroll Deductions
By law, employers must pay taxes deducted from employee paychecks. The most common taxes are federal and state, and sometimes cities have their own local taxes. In addition, employees have to pay a Social Security Tax (FICA), and Medicare tax contribution with each paycheck.

5. Mandated taxes: Social Security
The Social Security tax is also called the FICA tax.
(Federal Insurance Contributions Act)
Social Security taxes provide the following benefits for employees and their dependents: • retirement benefits • benefits for the dependents of retired workers • benefits for the disabled and their dependents

6. Medicare
The Medicare tax is used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.
Irs.gov

7. W4
You use W-4 Employee's Withholding Allowance Certificate Form to establish your withholding allowances for Federal income taxes.
Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.
PDF of W-4

8.  Your employer uses this information to withhold the correct federal income tax from your pay. Withholding allowances vary from person to person based on a number of circumstances
If you are claimed as a dependent on someone else’s tax return, you should claim zero allowance

9. W4 Line 5 is where you write your withholding allowances.
Usually a number between 0 and 7.
Less chance of tax return.
Greater chance of tax return.
Lower # =
more $
withheld
Higher # =
less $
withheld

10. Net Income vs. Gross Income
Gross income is the total amount a worker is paid before any required or voluntary deductions are made.
Net income, also called “take home pay,” is the amount a person receives when he cashes or deposits his check. It is the remaining amount after deductions are made.

11. Gross Income
- Deductions
Net Income

12. Do You Know…
What form do you get from your employer at the end of the tax year if you had federal tax withheld from your paycheck?

13. Sample W-2 Form
16,680.24
1,728.00
16,680.24
Real World Business
Chicago, IL 60640
16,680.24
241.92 D
Irma Money
2301 South Jackson
Chicago, IL 60640
Summary of tax deductions from pay stub.
Notice that salary was $20,000, but taxable income (box 1) is much less because of pre-tax deductions!
One for each job in year. Must be mailed to employees by January 31. Used to file tax return that must be filed by April 15.

14. What is W-2 Form?
Your employer issues you a W-2 if you had federal tax withheld from your paycheck.
W-2 reports the total amount of tax withheld.
You will receive one W-2 form for each job you worked at during the year.
Summary of tax deductions from pay stub.
Notice that salary was $20,000, but taxable income (box 1) is much less because of pre-tax deductions!
One for each job in year. Must be mailed to employees by January 31. Used to file tax return that must be filed by April 15.

15. In this lesson, you will learn
Who can file the 1040EZ form,
What a W-2 form is, and
How to file the 1040EZ form.

16. 1040EZ Form
The 1040 EZ form offers quick and easy tax filing to some Americans.

17. Where do you get the 1040EZ form?
Local Library.
U.S. Post Offices
Online

18. Who should use the 1040 EZ?
Your filing status is single or married filing jointly.
You do not claim any dependents.
You do not claim any adjustments to income .
You had only wages, salaries, tips, taxable scholarship or fellowship grants.
your taxable interest was not over $1,500.
Your taxable income is less than $100,000.

19. 1040EZ is Simple to File The one-page form has four short sections:
Personal Information
Sources of Income
Payments, credits and tax
Calculating refunds and amounts due
Personal Information: name, address and Social Security number
Sources of Income: wages, salaries, tips, taxable interest of $1,500 or less
Payments, credits and tax: tax payments if you have already made through employer withholding or making estimated tax payments.
Calculating refunds and amounts due: If you have overpaid, you are entitled to a refund. If you have underpaid, you need to include a payment for the remaining balance with your tax return.

20. Do not need to file a tax return if you earn below this amount
If your gross income is below the number on the right, you are not required to file a tax return. If it is more than that number, you do need to.
Find your filing status and age bracket.
Do not need to file a tax return if you earn below this amount
Filing Thresholds for 2015
Filing Status
Age
Gross Income
Single
Under age 65
$10,300

21. Samples and Practice
Next we will take a look at how to complete the form.
Then you will get to fill out your own.

22. Using the following, let’s practice
A blank 1040EZ form.
Sample W-2
Sample completed 1040EZ

23. Now it is your turn to try!
Print your name, address and Social Security Number.
Using the sample W-2 form, complete the Income section and calculate your taxable income.
Complete the payments and tax section and then go to the booklet (sheet) provided in the handouts to calculate your tax.

24. When is the filing deadline for taxes?
Usually April 15 of the following year.

25. 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.
PDF of 1040 EZ form

26. W4

27. The IRS has provided wonderful resources for students to learn about taxes. Basic modules are available at and lessons at

29. If someone is claiming you as a dependent, the IRS requires that you file a tax return of your own.
You earned more than $6,300. 
You have more than $1,050 of unearned income. Unearned income is money that you get without working like interest and dividends.
Your earned and unearned income is more than the greater of (1) $1,050 or (2) earned income plus $350 
You had tax taken out of your paychecks and you want it back.

30. Continued
Find out whether you will get a refund (Line 11a) or you owe money to IRS (Line 12).
If you are getting a refund, you can have your refund mailed to you or directly deposited into your bank account.
If you owe money, you have to write a check.
Be sure to sign your return and add in additional information as required.
Good Luck!!

31. Resources 1040EZ Forms 1040EZ Instructions
Video Instructions on Filing 1040EZ
Sample W2 Form
More forms from the IRS