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FEDERAL INCOME TAXES FEDERAL INCOME TAXES Just the basics…..

FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

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Page 1: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

FEDERAL INCOME FEDERAL INCOME TAXESTAXES

Just the basics…..

Page 2: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

Filing statusFiling status

SingleMarried – joint filingMarried – separate filingHead of household – meet conditions, can

be single or marriedWidow(er)

Page 3: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

ExemptionExemption

The amount you subtract for each person who depends on you for income

Reduces your taxable income and taxInclude self and dependents

Page 4: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

GROSS INCOMEGROSS INCOME

All taxable income receivedEarned income (salary, wages, tips)Unearned income (interest, dividends,

unemployment….)

On your W-2 – wages, salary, tipsOr1099 – interest, dividends, unemployment

Page 5: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

W-2W-2

Page 6: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

10991099

Page 7: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

ADJUSTED GROSS INCOMEADJUSTED GROSS INCOME

Income subject to taxesGross income – some spending

◦IRA’s, student loan interest, …..

Page 8: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

DEDUCTIONSDEDUCTIONS

Either..Itemized deductions (medical, dental,

property tax, mortgage interest, donations…)

OrStandard deduction (if you don’t have

itemized deductions)

Page 9: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

TAX CREDITSTAX CREDITS

Subtracted from the tax owed – educational expenses, child care expenses…

Page 10: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

VERY SIMPLY….VERY SIMPLY….

Page 11: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

GROSS INCOME- ADJUSTMENTS= ADJUSTED GROSS INCOME- STANDARD DEDUCTION OR ITEMIZED- EXEMPTIONS= TAXABLE INCOMEGet tax from tax tables- CREDITS-TAX WITHHELD (on W-2)= TAX OWED OR REFUNDED

Page 12: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

Who files?Who files?

All who earned enough to owe taxes!If you don’t owe taxes but had deductions

you should file to get all back!

Page 13: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

WHEN DO YOU FILE?WHEN DO YOU FILE?

The DREADED April 15!

Page 14: FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can

FORMSFORMS

Use if you have more deductions than the standard deduction (set by IRS, changes every year)

10401040A

If not enough deductions use the 1040EZ