5.2 File a Tax Return
 Tax Return
 Form W-2
 Form 1099-INT
 Form 1040EZ
 Dependent
 Deduction
 Social Security Number
 Taxable income

A tax return is a set of forms that taxpayers use to
calculate their tax obligation. (how much income
taxes they owe.)
Is everyone required to file a tax
return?
 No, only if you have income above the
minimum amount set each year by the
government.
 Salary or wages
 Tips
 Investments/Capital Gains
 Interest
 Jobs paid in cash
 Lottery winnings
Your Aunt Sue gave you $200 for your birthday, is
this taxable income?
No, you are not required to pay taxes on gifts
unless they exceed the amount allowed
by the government.
 You must calculate and file your tax return by April 15th
for the previous year.
 For Example:
 For the work year January 1, 2010- December 31, 2010
 W-2 Form provided by employers by January 31, 2011
 Form 1099-INT provided by banks by January 31, 2011
 Tax returns due to IRS by April 15, 2011
For most young people these two forms are enough
to complete your income tax returns.
1.
Form W-2: a summary of your earnings and
withholdings for the year.



2.
Comes from your employer
Must be provided by employers by January 31
When you file a tax return you must enclose a copy of your
W-2 form. (the IRS also receives one from your employer)
Form 1099-INT: a statement of the interest your
bank paid on your savings for the year.
 All individual tax payers must use one of the following
three basic forms for filing a federal income tax return:
1.
2.
3.
1040
1040A
1040EZ
 Most young people qualify to use the simplest form which
is the F0rm 1040EZ.
 When you are older and your financial life is likely to be
more complicated- you will use a 1040 or 1040A. These
forms allow you to itemize deductions to reduce the
amount of tax you owe.

Deductions are expenses you can legally subtract from your
income before calculating your taxes.
1. Label (Identify yourself)
1.
2.
Name & Address
Social Security Number – a unique number assigned to
you by the federal government. Memorize this number, you
will have to write it on many official documents.
2. Income
1.
Works you through to your taxable income-the income
figure that is used to determine your taxes.
3. Payment and Tax
1.
2.
Federal withholdings + (EIC) = Total Payment
Tax- use table to calculate your total tax for the year
4.
Refund or Amount you Owe Calculated
1.
5.
Sign Here
1.
6.
Refunds can be deposited electronically
Signature, Date & Occupation (your signature declares the
information is true)
Check for Accuracy and File your Return
1.
2.
3.
4.
5.
Always check your tax forms
Pay amount owed by check or credit card (fee for credit card)
Send tax form along with W-2 & check
Keep copy for your records
Send by April 15th
 Do people who work for themselves pay income tax?
 If so, how?
 Yes, they must file at 1040. Self employed individuals pay
estimated taxes in quarterly installments based upon
the income they receive each quarter.
 Self-employed individuals are required to complete and
attach a Schedule C or C-EZ to their 1040 form.
 Most important thing to remember about the self-
employed- they pay the same taxes that employees pay
and they must “withhold” their own taxes and make
the payments themselves.
 You may file your tax return online.
 Biggest advantage- you get your refund faster.
FAST
SLOW
On-line returns take 3-4 weeks to process
Snail mail returns can take 6 weeks or more.
For additional understanding you can complete
the four parts of the review: Tax Tutorial, Fact
Sheet, Simulation & Assessment for payroll
taxes & federal income tax withholding:
http://www.irs.gov/app/understandingTaxes/s
tudent/hows_mod01.jsp
 After you complete the last step the
Assessment, print out your score and hand it in
to me for extra credit.