1. Banking Complete form 1040EZ. Complete form 1040A.
4/1/2017
7-4 FORMS 1040 EZ AND 1040A
OBJECTIVES
Complete form 1040EZ.
Complete form 1040A.
Chapter 1

2. Key Terms Form 1040EZ Form 1040A Form 1040 dependent exemption itemize
standard deduction

3. Example 1
Elizabeth Allison is a food editor for a magazine. She has received a W-2 form from her employer and a 1099 form from her savings bank. What is Elizabeth’s taxable income for the year if she files as a single taxpayer?

4. What is Elizabeth’s taxable income?
Example 2
What is Elizabeth’s taxable income?
What is Elizabeth’s tax?

5. EXAMPLE 3
Does Elizabeth get a refund or owe the government money? In either case, determine that amount.

6. CHECK YOUR UNDERSTANDING
Leo is filling out his 1040EZ form. His employer withheld $12,907 in federal taxes. He has calculated that he owes $13,952. Does he get a refund or owe money? In either case, what is the amount?

7. How many exemptions can Mr. and Mrs. Omar claim?
EXAMPLE 4
How many exemptions can Mr. and Mrs. Omar claim?

8. EXAMPLE 5
Determine the Omars’ adjusted gross income. They received $987 interest on bank deposits and $1,200 in stock dividends.

9. Determine the Omars tax for the year.
EXAMPLE 6
Determine the Omars tax for the year.

10. EXAMPLE 7
Do the Omars get a refund or owe the government money? In either case, determine that amount.

11. CHECK YOUR UNDERSTANDING
Suppose that Kenya had an additional $50 withheld from each of his biweekly paychecks. How would that change the amount reported on his W-2 form? With the additional money withheld, would they have gotten a refund or owed the government money?