Paying Your Federal Taxes 1040. Paying Your Taxes

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Paying Your Taxes

Paying Your Federal Taxes


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 StewartOJ SimpsonNicolas Cage Marc AnthonyRichard 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.

Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.PDF of W-4

5W-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 withheldIf 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 $ withheldLower # = more $ withheldW-2Form 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 1040FICA = 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

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-2s 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 2Step 3: put a zero for unemployment compensation .