1. FEDERAL INCOME TAXES Just the basics…..

2. Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can be single or married Widow(er)

3. Exemption The amount you subtract for each person who depends on you for income Reduces your taxable income and tax Include self and dependents

4. GROSS INCOME All taxable income received Earned income (salary, wages, tips) Unearned income (interest, dividends, unemployment….) On your W-2 – wages, salary, tips Or 1099 – interest, dividends, unemployment

5. W-2

6. 1099

7. ADJUSTED GROSS INCOME Income subject to taxes Gross income – some spending ◦IRA’s, student loan interest, …..

8. DEDUCTIONS Either.. Itemized deductions (medical, dental, property tax, mortgage interest, donations…) Or Standard deduction (if you don’t have itemized deductions)

9. TAX CREDITS Subtracted from the tax owed – educational expenses, child care expenses…

10. VERY SIMPLY….

11. GROSS INCOME - ADJUSTMENTS = ADJUSTED GROSS INCOME - STANDARD DEDUCTION OR ITEMIZED - EXEMPTIONS = TAXABLE INCOME Get tax from tax tables - CREDITS -TAX WITHHELD (on W-2) = TAX OWED OR REFUNDED

12. Who files? All who earned enough to owe taxes! If you don’t owe taxes but had deductions you should file to get all back!

13. WHEN DO YOU FILE? The DREADED April 15!

14. FORMS Use if you have more deductions than the standard deduction (set by IRS, changes every year) 1040 1040A If not enough deductions use the 1040EZ