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Dollars & Sense

Dollars & Sense. W-4’s, W-2’s, and Tax Returns. Financial Planning. What is a W-4?. On what day of the year are income tax returns due to the United States federal government (also known as “tax day”)? April 15. Q&A. Jan. 1. Dec. 30. April 15. Pay-as-you-go system.

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Dollars & Sense

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  1. Dollars & Sense W-4’s, W-2’s, and Tax Returns

  2. Financial Planning

  3. What is a W-4?

  4. On what day of the year are income tax returns due to the United States federal government (also known as “tax day”)? April 15 Q&A

  5. Jan. 1 Dec. 30 April 15 Pay-as-you-go system • Each pay period, a portion of your check goes toward your tax obligation

  6. Example:

  7. Based on how you filled out your W-4 form. Purpose of W-4: determine how much federal income tax will be taken out of your paycheck each pay period. How does your employer know how much money to take out?

  8. W-4 Form: If not exempt… • Fill out allowances worksheet • Allowances: reduce your taxable income ($3,400) • As a teenager, you must put zero allowances • The less allowance you claim, the more $$ taken out Allowances $ Taken Out (Taxes) Net Pay Refund

  9. Impact of Allowances

  10. What is a W-2?

  11. What do you need to complete your tax returns? • Income • W-2 Form(s) • 1099 Form(s) • Other tax deductible statements • Tax forms or access to online forms

  12. How do I complete a tax return?

  13. How much will I owe? 2010 Federal Income Tax Brackets 2009 Federal Income Tax Brackets www.moneybluebook.com

  14. Federal Tax Return For a single person or married persons with no itemized deductions, complete Form 1040EZ

  15. State Tax Return For a single person or married persons with no itemized deductions, complete Form WI-Z

  16. Practice 1040EZ • Prepare a 1040EZ federal tax return for Maria Hunt using the information below. • Maria is single and claims only herself. • Maria M. Hunt / 54 Center Street / San Francisco, CA 96214-3627 • Social security number: 541-33-9892 • She wants $3 to go to the Presidential Election Campaign fund. • Maria’s salary is $28,200, plus she earned interest of $155. • No one else claims her as a dependent. • Occupation: part-time engineer • Maria had $3,660 in federal taxes withheld.

  17. Practice WI-Z • Prepare a WI-Z state tax return for Marta M. Hunt using the information below. • Marta is single and claims only herself as an exemption. • Social security number: 383-65-3958 • Marta M. Hunt / 708 W. Milwaukee St./ Jefferson, WI 53549 • She wants $1 to go to the State Election Campaign fund. • Tax district is the City of Jefferson, County of Jefferson, School district number 2702. • Maria’s salary is $44,978, plus she earned interest of $365. • No one else claims her as a dependent. • Marta paid $7,200 in rent. Heat was not included. • Maria had $1,877 in state taxes withheld.

  18. Assignment Complete a 1040EZ and WI-Z tax return for Sammy Dawson

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