Paying Your
Federal Taxes
1040
Paying Your
Taxes
Do Now
 Try to complete form 1040 on
your own.
 Form 1040 is used to file your
return to the IRS.
 It reconciliates your tax liability
from your actual taxes withheld.
Famous People Convicted of Tax
Evasion
 Martha Stewart
 OJ Simpson
 Nicolas Cage
 Marc Anthony
 Richard Hatch: The Winner of Survivor
 Was given a dose of reality and a 3 year jail sentence
Once You accept a Job you fill out a W-4
You use W-4 Employee's Withholding Allowance Certificate
Form to establish your withholding allowances for Federal
income taxes.
W-4 Determines how much
Federal tax you would like
withheld.
 If you claim 0 or 1 = likely to receive a REFUND
because too much taxes were withheld
 If you claim 2 = Takes less money out of your
paycheck: potentially OWE money.
 Anything higher = likely to owe money and possibly be
required to resubmit your W-4 Form.
Line 5 is where you write your withholding
allowances.
Lower #
Higher #
=
=
more $
less $
withheld
withheld
W-2
 Form W-2 reflects all taxable wages you received during the
calendar year and all taxes withheld from those wages.
 The form serves as an annual report that enables you to file your
personal income tax return with the Internal Revenue Service.
Receive W-2 From Employer
by Jan 31st
 W-2 Lists your wages (Box 1) and the amount of
Federal Income tax withheld. (Box 2)
 Only use box 1 and box 2 to fill out a 1040
 FICA = Social security and Medicare taxes withheld
7.65 % are payroll taxes and are withheld and paid
every time you have a paycheck. Employers are to
send out payroll taxes
 Federal Income tax is withheld every payroll, but it is
only filled April 15th.
PAY DATE
GROSS PAY
NET PAY
TAXING AUTHORITY
_______________________________________________________________________________________________________
07/31/2013
$5,000.00
$3,357.52
PATTON TWP
Paycheck example
PAY PERIOD DATES
MARITAL STATUS
WITHHOLDING ALLOWANCE
FEDERAL ADD ON
_________________________________________________________________________________________________________
07/01/2013 TO 07/31/2013
Single
2
$0.00
BUDGET
RATE
SHIFT/OC
REG HRS
OT HRS HOL HRS
HOL OT
AMOUNT
___________________________________________________________________________________________
0504503 UP $0.00
0.0
0.0
0.0
0.0
0.0
$5,000.00
TAXABLE SALARY
TAX WITHHELD
_________________________________________________________________________________________________________
FEDERAL
FICA
MEDICARE
STATE
LOCAL
Current
YTD
$4,560.40
$4,872.90
$4,872.90
$4,872.90
$4,872.90
$27,128.03
$28,987.40
$28,987.40
$28,987.40
$28,987.40
Current
FEDERAL
$592.55
FICA
$302.12
MEDICARE
$70.66
STATE
$149.60
LOCAL
$70.66
UNEMPLOYMENT $3.50
LST
$4.33
YTD
$3,659.21
$1,797.22
$420.33
$889.92
$420.33
$26.00
EMPLOYEE DEDUCTIONS / REDUCTIONS
_________________________________________________________________________________
Current
YTD
Current
YTD
RETIREMENT
MEDICAL
VISION
$312.50
$84.62
$0.78
$1,859.37
LTD
DENTAL
PARKING
$9.46
$5.70
$36.00
1040 EZ
Similar to the 1040
income tax form,
1040EZ is a faster and
easier way to file your
taxes
. This form is only
eligible for people with
income less than
$50,000 and interest
income of $400 or less.
Federal Income Tax Return
 1040 EZ is the simplest form.
 Cannot use form if you have mortgage payments, or
charitable contributions, or interest over $1500.
 All you need to complete a 1040EZ are your W-2’s and
1099s (usually interest payments)
Manual Return
 Can file manual pen and paper return
 Or more commonly use an electronic tax software
program like TurboTax, or TaxAct.
 You can also submit your return to an accountant or
H&R Block to complete.
1040 EZ
 Step 1: Add up your W-2s. Add up the totals on Box 1
and put it on line 1 of the return .
 Step 2: Add 1099INT interest on line 2
 Step 3: put a zero for unemployment compensation .