Personal Income Tax Returns 1040EZ and 1040

Disclaimer A tax return can be simple and it can be very complicated. We will be doing a very basic return. Any questions can be answered at http://www.irs.gov. Excellent site!!! You can call the local IRS office when in doubt. hello

Can I use a 1040EZ form? Only for single or joint tax filers Taxable income of less than $50,000 Do you have dependants? If yes, you cannot file a 1040EZ form. You can only use the standard deduction. The only income included is wages, taxable interest (<$400), and unemployment compensation. You can deduct Earned Income Credit.

Label: Address Make sure that name is correct and spelling Social security number is written correctly Check whether the person wants a donation to go to the Personal Election Campaign Double check the social security numbers

Filing Status Affects the amount of tax the person pays Single Married filing jointly Married filing separately Head of Household- single with dependants Qualifying widow (er) with a dependent child.

Exemptions Amounts you may deduct from adjusted gross income based on the number of dependents you list on your tax form Must pass a dependant test. If your parents can claim you on their tax return, you can not claim an exemption for yourself on your income tax return.

Income Wages, salaries, tips, etc.– Form W-2 Taxable Interest Investment Income Taxable refunds of state and local income taxes Business Income Taxable pensions and annuities amount Unemployment compensation Capital Gains and Losses- profit or loss from the sale or exchange of an investment. Other Income including gambling winnings

What isn’t income? Gifts (up to $10,000) Inheritances Scholarships

Adjustments to Gross Income One half of Self-Employment Tax IRA deduction Student loan interest deduction

Itemized Deductions List of expenses you subtract form the adjusted gross income. Examples: State and Local income taxes Charitable deductions Mortgage interest and real estate taxes Unreimbursed Employee expenses Medical expenses Some expenses have limitations. You cannot deduct the full amount Education costs (has certain requirements)

Standard Deductions Fixed amount that you can deduct Standard deduction is different according to the filing status. Amounts change annually. Single or Married filing separately- $5,150 Married filing jointly, Qualifying widow (er)- $10,300 Head of Household- $7,550

Tax and Credits Federal Income Tax can be computed from a table. Credits are direct reductions of the tax owed For example Credit for child and dependant care expenses Education credits Residential energy credits

Other Taxes Self Employment Tax

Payments Amounts withheld from Forms W-2 and 1099 Earned Income Credit

Refund or Amount You Owe Total payments is compared to total tax. If your total payments are greater than the total tax, you will receive a refund. If not, you owe. You can receive your tax refund by direct deposit. You provide them with your checking or savings account information. This is the quickest and best way to get your refund.

Sign Here You must sign and date your return. The IRS will return your tax return if you do not sign it. You should also include your occupation and phone number.

When is the deadline? April 15 You can file an extension but the payment is still due. Failure to pay will result in interest and possibly a penalty.

Did you pay someone? Your tax preparer should fill out this section.

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