aim: forms 1040ez & 1040a course: math literacy do now: what does irs stand for? aim: how do...
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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
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.
Aim: Forms 1040EZ & 1040A Course: Math Literacy
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?
Aim: Forms 1040EZ & 1040A Course: Math Literacy
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?
Aim: Forms 1040EZ & 1040A Course: Math Literacy
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?
Aim: Forms 1040EZ & 1040A Course: Math Literacy
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.
Aim: Forms 1040EZ & 1040A Course: Math Literacy
Kenya & Robin
Kenya and Robin Omar are married with one child, Kenya is a pharmacist and Robin is a store manager.
Aim: Forms 1040EZ & 1040A Course: Math Literacy
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
Aim: Forms 1040EZ & 1040A Course: Math Literacy
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
Aim: Forms 1040EZ & 1040A Course: Math Literacy
Kenya & Robin’s 1040A
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
Aim: Forms 1040EZ & 1040A Course: Math Literacy
Kenya & Robin’s 1040A
Suppose Kenya had an additional $50 withheld from each of his biweekly paychecks. Would they still owe or would they then get a refund?
Aim: Forms 1040EZ & 1040A Course: Math Literacy
The Product Rule