Completing a Form 1040 EZ
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Tax return: set of forms that taxpayers use to
calculate their tax obligations
◦ If tax return shows that your withholding wasn’t
enough to cover your taxes, you must send
remaining to the government
◦ If tax return shows that your withholding more than
covered your taxes, then government sends you a
refund
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Income is more than wages, it includes:
◦ Tips
◦ Amount earned for odd jobs
◦ Anything from interest
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Every part of you income will be TAXED!
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YOU are responsible for the accuracy of the
return
◦ Even if you hire a professional
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Form W-2
Form 1099-INT
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Summary of your earnings and withholdings
for the year
By January 31, employers must give this to
their workers
You should receive one from every employer
you had in the year
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When you file your tax return, you must send
a copy of your W-2
Your employer also sends a copy to the IRS
If you fail to report your earnings, the IRS will
come after you
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Statement of the interest your bank paid on
your savings that year
Interest is a source of income – not very
much usually – but you’re still adding money
to what is already in there
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Your bank must mail this to you as well as a
copy to the IRS
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Form 1040EZ
Form 1040
Form 1040A
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To qualify to use this form:
◦ You are single or married and filing jointly with
your spouse
◦ You have no dependents (people you support
financially)
◦ You and your spouse are under 65
◦ Neither you nor your spouse are blind
◦ You have a taxable income of less than $50,000
◦ You earned no more than $1,500 in interest
◦ You had no income other than wages, interest, tips,
scholarships, or unemployment compensation
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https://www.irs.gov/pub/irs-prior/f1040ez-2014.pdf
Use Form W-2 and Form 1099-INT to it out
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When you are older, your life will be a bit
more complicated – own your own house, run
small business, invest in stock market, etc.
This form helps itemize deductions (expenses
you can legally subtract from your income
when figuring your taxes)