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7-4

FORMS 1040 EZ AND 1040A

Complete form 1040EZ.

Complete form 1040A.

OBJECTIVES

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Form 1040EZForm 1040AForm 1040dependentexemptionitemizestandard deduction

Key Terms

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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 if she files as a single taxpayer?

Example 1Example 1

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Example 2Example 2

What is Elizabeth’s taxable income?

What is Elizabeth’s tax?

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EXAMPLE 3EXAMPLE 3

Does Elizabeth get a refund or owe the government money? In either case, determine that amount.

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Leo is filling out his 1040EZ form. His employer withheld $12,907 in federal taxes. He has calculated that he owes $13,952. Does he get a refund or owe money? In either case, what is the amount?

CHECK YOUR UNDERSTANDING

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EXAMPLE 4EXAMPLE 4

How many exemptions can Mr. and Mrs. Omar claim?

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EXAMPLE 5EXAMPLE 5

Determine the Omars’ adjusted gross income. They received $987 interest on bank deposits and $1,200 in stock dividends.

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EXAMPLE 6EXAMPLE 6

Determine the Omars tax for the year.

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EXAMPLE 7EXAMPLE 7

Do the Omars get a refund or owe the government money? In either case, determine that amount.

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Suppose that Kenya had an additional $50 withheld from each of his biweekly paychecks. How would that change the amount reported on his W-2 form? With the additional money withheld, would they have gotten a refund or owed the government money?

CHECK YOUR UNDERSTANDING