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Understanding Taxes Worksheet

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University of Phoenix Material 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. 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 likely be used? If the student was single with no dependents than a 1040EZ tax form would be the easiest choice for a simple return. Enter a 2nd college student who is married with children then the tax form for …show more content…

As a general rule for policy, tax deductions make most sense for items that represent reductions in ability to pay tax, such as casualty losses. Credits are more appropriate for subsidies provided through the tax system. 7. When would a person use a third party designess? There are two major reasons for granting a third party authorization for the purpose of resolving your federal tax issues. The first reason for granting an authorization is for the purpose of allowing an individual to represent you in tax matters before the IRS. This authorization is a "Power of Attorney" and is submitted using Form 2848 (PDF). The second reason is to allow any individual, corporation, firm, organization or partnership you designate, your appointee, to inspect and/or receive your confidential tax information in any office of the IRS for the type of tax and years or periods you list on Form 8821, Tax Information Authorization (PDF). Visit W-2 Wage and Tax Form at http://www.irs.gov/pub/irs-pdf/fw2.pdf. 8. What is primary purpose of the W-2 Wage and Tax Forms? The IRS requires employers to report wage and salary information for employees on the W-2 form. The W-2 also reports the amount of federal, state and other taxes withheld from your paycheck. As an employee, the information on your W-2 is extremely important when preparing your tax return. To insure you have it in

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