Paying Your Federal Taxes 1040. Paying Your Taxes

Paying Your Federal Taxes

1040

Paying Your Taxes

Do NowTry to complete form 1040 on

your own.

Form 1040 is used to file your return to the IRS.

It reconciliates your tax liability from your actual taxes withheld.

Famous People Convicted of Tax Evasion

Martha Stewart

OJ Simpson

Nicolas Cage

Marc Anthony

Richard Hatch: The Winner of SurvivorWas given a dose of reality and a 3 year jail

sentence

Once You accept a Job you fill out a W-4 You use W-4 Employee's Withholding Allowance Certificate Form to establish your withholding allowances for Federal income taxes.

W-4 Determines how much Federal tax you would like withheld.

If you claim 0 or 1 = likely to receive a REFUND because too much taxes were withheld

If you claim 2 = Takes less money out of your paycheck: potentially OWE money.

Anything higher = likely to owe money and possibly be required to resubmit your W-4 Form.

W4

Line 5 is where you write your withholding allowances.

Higher #

=

less $

withheld

Lower #

=

more $

withheld

W-2 Form W-2 reflects all taxable wages you received during

the calendar year and all taxes withheld from those wages.

The form serves as an annual report that enables you to file your personal income tax return with the Internal Revenue Service.

Receive W-2 From Employer by Jan 31st

W-2 Lists your wages (Box 1) and the amount of Federal Income tax withheld. (Box 2)

Only use box 1 and box 2 to fill out a 1040

FICA = Social security and Medicare taxes withheld 7.65 % are payroll taxes and are withheld and paid every time you have a paycheck. Employers are to send out payroll taxes

Federal Income tax is withheld every payroll, but it is only filled April 15th.

Paycheck example

PAY DATE GROSS PAY NET PAY TAXING AUTHORITY _______________________________________________________________________________________________________ 07/31/2013 $5,000.00 $3,357.52 PATTON TWP PAY PERIOD DATES MARITAL STATUS WITHHOLDING ALLOWANCE FEDERAL ADD ON _________________________________________________________________________________________________________ 07/01/2013 TO 07/31/2013 Single 2 $0.00 BUDGET RATE SHIFT/OC REG HRS OT HRS HOL HRS HOL OT AMOUNT ___________________________________________________________________________________________ 0504503 UP $0.00 0.0 0.0 0.0 0.0 0.0 $5,000.00

TAXABLE SALARY TAX WITHHELD _________________________________________________________________________________________________________

Current YTD Current YTD

FEDERAL $4,560.40 $27,128.03 FEDERAL $592.55 $3,659.21 FICA $4,872.90 $28,987.40 FICA $302.12 $1,797.22 MEDICARE $4,872.90 $28,987.40 MEDICARE $70.66 $420.33 STATE $4,872.90 $28,987.40 STATE $149.60 $889.92 LOCAL $4,872.90 $28,987.40 LOCAL $70.66 $420.33

UNEMPLOYMENT $3.50 LST $4.33 $26.00

EMPLOYEE DEDUCTIONS / REDUCTIONS _________________________________________________________________________________

Current YTD Current YTD

RETIREMENT $312.50 $1,859.37 LTD $9.46 MEDICAL $84.62 DENTAL $5.70 VISION $0.78 PARKING $36.00

1040 EZ

Similar to the 1040 income tax form, 1040EZ is a faster and easier way to file your taxes. This form is only eligible for people with income less than $50,000 and interest income of $400 or less.

Federal Income Tax Return1040 EZ is the simplest form.

Cannot use form if you have mortgage payments, or charitable contributions, or interest over $1500.

All you need to complete a 1040EZ are your W-2’s and 1099s (usually interest payments)

Manual Return Can file manual pen and paper return

Or more commonly use an electronic tax software program like TurboTax, or TaxAct.

You can also submit your return to an accountant or H&R Block to complete.

1040 EZStep 1: Add up your W-2s. Add up the totals on

Box 1 and put it on line 1 of the return .

Step 2: Add 1099INT interest on line 2

Step 3: put a zero for unemployment compensation .