1



AP Macroeconomics Name:      

Form 1040A Worksheet Date:      

Directions: Go to the IRS site for Understanding Taxes. Review the applicable “Hows of Taxes” modules to answer the following questions.

1. Which of the following types of income would force a taxpayer to use a 1040A and not a 1040EZ form?

Social Security income

Wages

Interest income > $1,500

Income from an IRA (Individual Retirement Account)

Unemployment Compensation

Scholarships $

2. List all 3 Federal income tax filing forms from simple to complex.

a.      

b.      

c.      

3. List the 5 filing statuses from best tax rate to worst:

a.      

b.      

c.      

d.      

e.      

4. What is the purpose of the exemption amount for tax filing purposes?      

5. What is the exemption amount for the previous tax year?      

6. What is the purpose of the standard deduction amount for tax filing purposes?      

7. What is the difference between the standard deduction and exemption amounts? In other words, under what circumstances would you claim each of these amounts?      

8. What is the standard deduction for the previous tax year for the following filing statuses?

a. Single:      

b. Head of Household:      

c. Married Filing Joint:      

d. Qualifying Widow(er):      

e. Married Filing Separate:      

9. Under what circumstances would a taxpayer itemize deductions instead of taking a standard deduction?      

10. Review Which Form to Use. Would the following taxpayers be able to use Form 1040EZ or must they use Form 1040A or Form 1040? For 1040A and 1040, provide the reason why a simpler form cannot be used.

| |Married filing separate, no dependents, taxable income of $22,000, interest income of $1000, age 42. Reason:       |

| |Married filing joint, no dependents, combined taxable income of $122,000, interest income of $1000, age 26. Reason: |

| |      |

| |Single, no dependents, taxable income of $52,000, interest income of $1,600, age 42. Reason:       |

| |Single, no dependents, wages of $49,000, interest income of $300, no other income, age 37. Reason:       |

| |Married filing jointly, 2 dependents, wages of $65,000, no interest income, age 50, taking standard deduction (not |

| |itemizing). Reason:       |

| |Single, no dependents, age 27, wages of $35,000, received unemployment compensation of $2,800, no interest income. |

| |Reason:       |

| |Head of household, age 34, taxable income of $82,000, received $200 in interest income. Reason:       |

| |Single, no dependents, age 62 but retired, received $17,000 of income from an IRA, no interest income. Reason:       |

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download