1. Tax Returns 1040 EZ, W-2, W-4

2. Income Tax Return  Filed every year  To file = fill out form(s) & send to IRS  Reports your income for year & income tax you owe/refunded  Must be filed by April 15 each year  Without extension being granted, not filing or filing late = FINES  Purpose of return is to calculate your tax liability  Tax liability – amount of tax you owe  W-4 helps employer calculate tax liability

3. W-2  Getting completed W-2 is 1 st step of filing return  Shows earnings for year  Also shows amount employer withheld  Employer must have W-2 ready by Jan. 31 st  Received by mail or picked up

4. Filing Statuses  Single  Married Filing Jointly  Married Filing Separately  Head of Household  Qualifying Widow(er) with Dependent Child

5. Do I have to file? Filing StatusAge at December 31, 2014Gross Income Single Under 65$10,150 65 or older$11,700 Married Filing Jointly Under 65 (both)$20,300 65 or older (both)$22,700 Under 65 (one)$21,500 Married Filing SeparatelyAny$6,200 Head of Household Under 65$13,050 65 or older$14,600 Qualifying Widow(er) Under 65$16,100 65 or older$17,300

6. Tax Forms  1040EZ – simplest tax form to file  Can cost you  1040A – slightly more complex, but still simpler than 1040  1040 – most complex to file  http://www.irs.gov/pub/irs-pdf/i1040ez.pdf

7. 1040EZ  Requirements  Single or married filing jointly  No dependents  Taxable Income is less than $100,000  Taxable Interest under $1500  If claiming tax credit, only claim Earned Income Credit (EIC)  Claim no adjustments to income

8. Reportable Items 1040EZ  Wages, tips, other compensation  Taken from W-2  Unemployment Compensation  1099-G  Interest Income, Interest on US Savings Bonds  1099-INT  Social Security Benefits, Railroad Retirement Benefits  Earned Income Credit (EIC)

9. Earned Income Credit  Benefits working people with low to moderate income  Credit means more money in your pocket  Reduces amount of tax you owe  May lead to refund  Requirements  If single income less than $14,590 and no qualifying children  Cannot be qualifying child  Have a qualifying child or  Be age 25 but under 65 at end of year  Live in US more than half the year  Not qualify as dependent of another person

10. Activity  IRS Simulation  http://apps.irs.gov/app/understandingTaxes/student/simulations.jsp http://apps.irs.gov/app/understandingTaxes/student/simulations.jsp  Complete Simulation 1 for Lawrence Red Owl  Complete Simulation 2 for Cicely King  1040EZ  Once finished with simulation pick up 3 pages from front table  When everyone has finished the simulations we will walk through scenario 1 together