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.