ASSIGNMENT Tax Return
In this assignment you will…
1. Fill out two tax forms: (1) US Federal Income Tax Forms W-4 2024, AND (2) US Federal Tax Form 1040 2023, using the scenario of Jane Doe.
2. Upload the two completed tax forms through Canvas. Remember to sign the forms- either sign, type or mention you tried to sign the forms. The IRS will return unsigned forms and charge you penalties.
3. Use the information on the completed tax forms to answer the questions on the “Tax Return Worksheet Quiz” listed in the module as a second assignment.
DETAILED INSTRUCTIONS ARE BELOW
SCENARIO FOR JANE DOW
Jane Doe was born January 9 2000. She lives independently in California by herself. She has been working as a programmer for ABC enterprises for about 4 years, started January 1, 2019. She has as normal vision
She likes to contribute to the Presidential Election Fund
Phone number: 831-555-1212
Email: JaneDoe@xyz.edu
The IRS did not send an Identity Protection PIN
INCOME
Other than the one job has no income from interest, dividends, capital gains, business interests or retirement income.
All earned income is reported on the W-2 from ABC Corp
No interest in virtual currencies
As she is not retired, she took no IRA distributions or pension benefits, nor received social security benefits
FILING STATUS
No one else can claim her as a dependent
Files as a single person
No other forms or schedules are filed
Jane is filling out the form by herself and is not using a third party designee.
DEDUCTIONS
She takes the Standard Deductions and does NOT itemize deductions or make other adjustments to income.
She made no charitable contributions this year
W-4
does not want an additional amount withheld from paycheck
does not claim any exemptions from income taxes
has no “Other Credits” to claim on the W-4
JANE DOE’S W-2 FORM
W-2 FORM blank year-1.jpg
1. PREPARE A W-4
Go to irs.gov and download a Form W-4: irs.gov/Forms/W-4 for 2024
Fill out the W-4 form using the scenario above and the information on the W-2 posted above.
Submit the completed W-4
WARNING This is extremely simple! In 2020, the W-4 Form was redesigned by the IRS. It has been simplified and “allowances” are no longer used. Breathe and DO NOT OVER THINK IT. I have included the “How to Fill out a W-4” below for reference for students who may have more complicated taxes.
Resources:
How to Fill out a W-4 (https://www.nerdwallet.com/article/taxes/how-to-fill-out-form-w4-guide)
IRS FAQ on the redesigned W-4 2022 (https://www.irs.gov/newsroom/faqs-on-the-2020-form-w-4)
2. PREPARE A 1040
Though you likely file your taxes online, going through the form will show you how the calculations are done. Software prompts you with questions to gather for information, then plugs the numbers into the 1040 form.
Use two decimal places or math won’t work out.
Understand that total income is reduced by adjustments and deductions; taxes are based on this lower taxable income number.
The amount of tax due is found by looking up the taxable income number in the tax tables, under the “filing status” column, to get the tax due.
The tax tables summarize all the calculations of the tax brackets. Line-by-line instructions are found in the 1040 instructions booklet. You will not use any supplemental forms for this assignment.
Go to irs.gov and download a 1040 Individual Income Tax Return Form: irs.gov Forms & Instructions Form 1040 Form 1040
Fill out the 1040 (Note: Use two decimal places for all numbers.) This year you can use the IRS fillable Tax Form to do the assignment–fill out, down load completed form, post!
The instructions for the 1040: irs.gov Forms & Instructions Form 1040 Instructions for Form 1040 (Note: I have NOT given you the links.)
Submit the completed 1040 on Canvas
1040 Line by Line
Line 12: Enter the Standard Deduction They put a little wonky box to the left on the form. Do not go to Schedule A
Line 16: Tax : Look up tax due on Taxable Income (line 15) in the Tax Tables from Instructions for Form 1040 (https://www.irs.gov/pub/irs-pdf/i1040tt.pdf). in the IRS 1040 Instructions 2023. Find Taxable Income in the table, along the rows, then look at the “Single” column to find the tax due.
For example, if taxable income was 35,000 for a single person, taxes owed are $3,983
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
Investopedia: How to read a tax table (https://www.investopedia.com/terms/t/taxtable.asp)
Line 38: does not owe a penalty because tax due is less than $1,000 (See 2023 Instructions 1040 pg. 62.) Enter 0 HINT: Tax Due is $766.92 [Line 37: amount you owe]
Sign the form!! or mention that it needs to be signed in your submission.
TIPS
With tax forms, the key is to take them line by line and NOT OVERTHINK THEM. Answer the questions directly and do not add any additional information, or “what ifs”. Follow the math calculations closely–what line is subtracted from what line.
Carefully refer to the information listed on the scenario. It will give you all the answers you need. You are welcome to work in groups on the assignment.
Do not reveal, publish online or turn in any actual personal financial information such as your Social Security number, bank or investment account numbers. Financial information is highly confidential. This class is to teach you how to manage your financial life but does not require you to reveal personal information. Illustrative purposes only!!
3. ANSWER THE QUESTIONS ON THE QUIZ USING INFORMATION FROM THE TAX FORMS
Complete the Tax Return Worksheet/Quiz You will fill in answers based on how you filled out the tax return.