1. Taxes

2. W4
 Filled out by an employee when they
start work.
 Why is withholding good?
 How many deductions should you take?
 Claiming “exempt”
 Extra withholdings
 Advice: File 0 deductions!

3. Where do I get info to file taxes?
 W2 from each employer
 1099INT from each place that paid
interest to me

5. How many dependents?
 Either you or your parents can claim
you, NOT BOTH
 Who provides more than half of the
support for a person?
 Often, “who can claim” is negotiated in a
divorce settlement.
 If 2 taxpayers claim, whoever files first
gets the deduction, unless you fight it.

6. Earned Income Credit
 A reverse tax -- the government pays you!
 Rules:
– Income must be “earned”
– No more than $2950 in investment income
– Must either have a child or be at least 25
– Income less than $12,880 ($15,880 for married
filing jointly) if no children
– Income less than $33,995 ($36,995 for married
filing jointly) if 1 child
– Income less than $38,646 ($41,646 for married
filing jointly) if >1 child

7. You should file if . . .
 If you are unmarried, and earned over
$5450, OR
 If your “unearned income” is more than
$900, OR
 If your earnings from self-employment
were $400 or more

8. If you had more money withheld
 than you owe, then you don’t have to
file -- you can let the government keep
the extra!
 (Bad idea!)

9. Working “under the table”
 Definition
 Advantages
 Disadvantages
– Huge penalties
– “attaching” assets
– jail

10. Which form?
 1040EZ if
– Single or married filing jointly
– No dependents
– Earn less than $100,000
– Under 65 and not blind
– No itemized deductions
– Not more than $1500 of taxable interest

11. Which form?
 1040A if
– Earn less than $100,000
– No itemized deductions
 Otherwise . . .
– 1040

12. Mail FEDERAL tax forms to:
 Department of the Treasury
 Internal Revenue Service Center
 Andover, MA 05501-0014