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Filing Taxes
Taxes Due- April 15th
W-2 Form
Tax Basics
• Tax year: January 1st through December 31st
• Required to file taxes every working year.• Determines if you owe extra tax or if you paid
too much tax throughout year resulting in a refund.
• Can file taxes:– 1. E-file (irs.gov) – 2. Tax Software (TurboTax)– 3. Paper and mail-in.
Gross Income vs. Taxable Income
• Taxable Income- the amount of your income that is subject to tax
• Your income minus any allowable tax deductions• Example• Gross Income – 50,000• Standard Deduction- 6,200• Student Loan Interest- 800• Taxable Income= 43,000
Tax Forms
• 1040EZ – May or may not be claimed as a dependent– Do not have dependents– Do not itemize deductions
• 1040A– More income adjustments (deductions– Do not itemize deductions
• 1040– Itemize Deductions
Standard vs. Itemized Deduction
• All taxpayers have at least some income that is not taxed.
• Standard deduction is a flat rate(simple) that can be claimed on taxes (2014 Single: $6,200)
• Itemized deductions are a way to increase your tax refund by listing all eligible deductions (more complex, should use if more than standard deduction)
• Schedule A Form– Charitable gifts, mortgage interest, property tax, etc.
Federal Tax Tables, Forms, Instructions
• Tax Tables• 1040EZ Instructions• 1040A Instructions• 1040 Instructions• www.irs.gov
State and Local Taxes
• We have ONLY covered Federal Taxes!• Also, file taxes for state income.• Possibly local school district and municipality
tax.
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