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

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

W-2

Getting completed W-2 is 1st step of filing return

Shows earnings for year

Also shows amount employer withheld Employer must have W-2 ready by Jan. 31st

Received by mail or picked up

Filing Statuses

Single

Married Filing Jointly

Married Filing Separately

Head of Household

Qualifying Widow(er) with Dependent Child

Do I have to file?

Filing Status Age at December 31, 2014 Gross Income

SingleUnder 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 Separately Any $6,200

Head of HouseholdUnder 65 $13,050

65 or older $14,600

Qualifying Widow(er)Under 65 $16,100

65 or older $17,300

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

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

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)

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

Activity

IRS Simulation 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