The Federal Income Tax Return
As you work with this chapter, obtain the following Internal Revenue Service forms and publications to increase your understanding and to complete the chapter questions and problems.[1] In some cases—like the tax forms needed for the end-of-chapter problems—print a copy(ies) of the form. In other cases, like a publication, especially a long publication, you can save a copy to your computer. All forms and publications are available free from http://www.irs.gov.
Form 1040EZ1040EZSimplest federal tax return that can be used by single and joint files with no dependents. and Instructions
Form 1040A1040AFederal tax return known as the “short form.” and Instructions
Form 10401040Individual income tax return, long form; can be used by any taxpayer. and Instructions, including Instructions for Schedules A, B, C, D, E, F, J, and SE
Form W-4W-4Form completed by an employee to determine the amount of income that should be withheld by an employer and remitted as a tax prepayment., Employee’s Withholding Allowance Certificate
Publication 15-A, Employer’s Supplemental Tax Guide (Supplement to Circular E, Employer’s Tax Guide, Publication 15Publication 15Employer’s Tax Guide, IRS guide for employers.)
Overview
The IRS reported that over 138 million “individual”[2] 2007 income tax returns were filed. The returns were filed on Forms 1040, 1040A, and 1040EZ. Taxpayers filed 40% of the total returns using the less complicated tax forms. On 65% of all of the returns, taxpayers did not itemize deductions, but over half of all tax filers used paid preparers to help them. Electronic filing of tax returns is increasing with over 81 million filed in 2008 for the 2007 tax year. In this chapter we will learn the basics about the federal income tax return: who is required to file, where and when to file, the forms available and other facts. IRS Your Federal Income Tax, Publication 17Publication 17Your Federal Income Tax, IRS guide for individuals. will be used to provide basic information on some topics and supplement information on other topics. We will also begin using tax forms and the instructions for those forms. The instructions for the tax forms are very important as they provide specific guidance that is not found in Publication 17 or this text. Students should note that the computation of taxable items or of deductions will often be more complicated and different on tax forms than from the concept presentation in the text or in the IRS publications. When first learning the material, follow the instructions for the forms line-by-line. It is important for students beginning to learn income tax to understand the basic time line. This text, for example, is the 2009 edition since students will read and use it in that year. The latest data and the end of chapter problems are designed for income and expenses of calendar year 2008.
[1] The forms and publications are in addition to Your Federal Income Tax, Publication 17, Internal Revenue Service.
[2] “Individual” in this context means that the returns are not partnerships, corporations, estates, trusts, excise, or other special returns. Later in this chapter, a “joint” filing status is an option when filing an individual return.
