Aim: Forms 1040EZ & 1040A Course: Math Literacy Do Now: What does IRS stand for? Aim: How do taxpayers report their income to the government?

Aim: Forms 1040EZ & 1040A Course: Math Literacy

Do Now:What does IRS stand for?

Aim: How do taxpayers report their income to the government?


Income Tax Forms

Form 1040EZ

• your filing status must be single or married filing jointly only

• You have not dependents, other than your self and your spouse to claim.

• Your taxable income is less that $100,000.

• Your income is only from wages, salaries, tips, taxable scholarships, fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends.

• Your taxable interest is not over $1500.


Income

Elizabeth Allison is a food editor for a magazine. She has received a W-2 form from her employer and a 1099 form from her savings bank. What is Elizabeth’s taxable income for the year she files as a single taxpayer?


1040EZ

How would Elizabeth’s tax form above differ is she were married, filing a joint return, assuming that her spouse had no income to report?


Tax on Income

What is Elizabeth’s tax? Through her employer withholding, Elizabeth has already paid $15,884 in federal taxes. She must use the table to determine if she owes more tax or if she’s due a refund.

If Elizabeth were married and filing a joint return, with the same income, what would be the result?

Leo is filling out his 1040EZ form. His employer withheld $12,907 in federal taxes. He has calculated that he owes $13,952. Owe or refund? How much?


Income Tax Forms

Form 1040A• your filing status must be single or married filing jointly only

• Your taxable income is less that $100,000.

• Your income is only from wages, salaries, tips, taxable scholarships, fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends.

• Your taxable interest is not over $1500.

• Dependents

• Don’t Itemize deductions

Exemptions – an allowable amount that reduces the taxable income.


Kenya & Robin

Kenya and Robin Omar are married with one child, Kenya is a pharmacist and Robin is a store manager.


1040A

Kenya and Robin Omar are married with one child, Kenya is a pharmacist and Robin is a store manager.

How many exemptions can they claim? 3

Jack and Janine Jones are married and filing a joint 1040A. They have x dependent children and are sole supporters of y dependent adults. Write and algebraic expression for the number of exemptions they will claim. x + y + 2


Kenya & Robin’s 1040A

Do they owe or are they due a refund?

Lisa and Bob Zee have a combined income from salaries of $87,980. They received 1099 forms for $1,100 in interest and $1,300 in stock dividends. They have a total of $4,000 in adjustments to their gross income. Determine their adjusted gross income. $86,380



Raul and Hannah have an adjusted gross income of A dollars. They are married and filing a joint return. They reported a total of E exemptions on their form and have no further deductions. Write an algebraic expression for their taxable income.

A – $10,900 – 2E



Suppose Kenya had an additional $50 withheld from each of his biweekly paychecks. Would they still owe or would they then get a refund?


The Product Rule

Documents

Aim: Forms 1040EZ & 1040A Course: Math Literacy Do Now: What does IRS stand for? Aim: How do taxpayers report their income to the government?