Chapter 02 Expanded Tax Formula, Forms 1040A and 1040, and ...
Financial Algebra © Cengage/South-Western Slide 1 7-4 FORMS 1040 EZ AND 1040A Complete form 1040EZ....
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Transcript of Financial Algebra © Cengage/South-Western Slide 1 7-4 FORMS 1040 EZ AND 1040A Complete form 1040EZ....
Financial Algebra© Cengage/South-Western Slide 11
7-4
FORMS 1040 EZ AND 1040A
Complete form 1040EZ.
Complete form 1040A.
OBJECTIVES
Financial Algebra© Cengage Learning/South-Western Slide 22
Form 1040EZForm 1040AForm 1040dependentexemptionitemizestandard deduction
Key Terms
Financial Algebra© Cengage Learning/South-Western Slide 33
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
Financial Algebra© Cengage Learning/South-Western Slide 44
Example 2Example 2
What is Elizabeth’s taxable income?
What is Elizabeth’s tax?
Financial Algebra© Cengage Learning/South-Western Slide 55
EXAMPLE 3EXAMPLE 3
Does Elizabeth get a refund or owe the government money? In either case, determine that amount.
Financial Algebra© Cengage Learning/South-Western Slide 66
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
Financial Algebra© Cengage Learning/South-Western Slide 77
EXAMPLE 4EXAMPLE 4
How many exemptions can Mr. and Mrs. Omar claim?
Financial Algebra© Cengage Learning/South-Western Slide 88
EXAMPLE 5EXAMPLE 5
Determine the Omars’ adjusted gross income. They received $987 interest on bank deposits and $1,200 in stock dividends.
Financial Algebra© Cengage Learning/South-Western Slide 99
EXAMPLE 6EXAMPLE 6
Determine the Omars tax for the year.
Financial Algebra© Cengage Learning/South-Western Slide 1010
EXAMPLE 7EXAMPLE 7
Do the Omars get a refund or owe the government money? In either case, determine that amount.
Financial Algebra© Cengage Learning/South-Western Slide 1111
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