FP 101 Week 9 Understanding Taxes Worksheet

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FP 101 Week 9 Understanding Taxes Worksheet
FP 101 Week 9 Understanding Taxes Worksheet
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FP 101 Week 9 Understanding Taxes Worksheet

Resource: Taxes. This assignment will use tax example forms and have correlating questions for each form.  Please follow the directions contained within the worksheet.

Complete the Understanding Taxes Worksheet.

Submit the completed Understanding Taxes Worksheet as a Microsoft® Word®attachment to the Assignment Files tab.

Understanding Taxes Worksheet

 

Resources: The United Stated Internal Revenue Service at www.IRS.gov

 

Directions: Use the links provided for each tax form to answer the correlating questions in 50- to 150-word responses.  You will be using forms and example forms to answer the questions below.

 

 

 

Understanding the 1040 Form

 

Visit 1040A  Form at http://www.irs.gov/pub/irs-pdf/f1040a.pdf

 

  1. Compare and contrast the 1040, 1040A, and 1040EZ form. Which form would a single student use? If the student was married with children, which form would most likey be used?

 

  1. If a person is single and head of household, why would he or she be able to file “head of household”?

Are there any benefits from filing as head of household, rather than single?

 

  1. Define capital gains. What impact can this have on a refund or payment of taxes?

 

  1. What is an adjusted gross income? Which line on the tax form is total income located?

 

  1. What lines would student loan interest deductions and tuition and fees be located on the 1040A form?  What form is used to help  with a student’s tution and fees?

 

  1. Explain what is a tax credit and tax deduction.

 

  1. When would a person use a third party designess?

 

Visit W-2 Wage and Tax Form at http://www.irs.gov/pub/irs-pdf/fw2.pdf.

 

  1.  What is primary purpose of the W-2 Wage and Tax Forms?

 

  1. When does a taxpayer receive the W-2? Who will provide this form to the taxpayer?

 

  1. What items on the W-2 make up Federal Insurance Contributions Act or FICA?

 

  1. What form should accompany the W-2 for Child and Dependent Care Expense?

 

  1. What is the date that taxes are due? If you need an extenstion what form would you use? How long is the extension? Are there any penalties for requesting an extension?