1. Personal Income Tax Returns
1040EZ and 1040

2. 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 Excellent site!!!
You can call the local IRS office when in doubt.
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3. 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.

4. 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

5. 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.

6. 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.

7. 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

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

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

10. 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)

11. 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

12. 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

13. Other Taxes
Self Employment Tax

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

15. 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.

16. 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.

17. 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.

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

19. Tax Return Software for your PC
Easiest way to do your return
Easy to use
Can complete Federal and State returns
TurboTax
TaxCut