Q.What are the three individual income tax forms?
A. The three forms are Forms 1040EZ, 1040A, and 1040.
Q.How should dollar amounts be entered on the tax return?
A. Only whole dollar amounts should be entered. When rounding amounts to the nearest dollar, 50–99¢ are rounded up; 1–49¢ are rounded down.
Q.How should percentages be rounded?
A. Percentages should be rounded in the same manner and to at least two places past the decimal point; for example, 27.86%.
Q.How would you round $999.51?
A. $1,000.
Q.How would you round 30.493%?
A. 30.49% (or .3049 as a decimal).
Q.What form is used by an employer to report wage and tax information to an employee?
A. Form W-2
Q.Where are total wages entered on Form 1040?
A. On line 7.
Q.On Form 1040A?
A. On line 7.
Q.On Form 1040EZ?
A. On line 1.
Q.Where is total federal income tax withheld entered on Form 1040?
A. On line 62.
Q.On Form 1040A?
A. On line 38.
Q.On Form 1040EZ?
A. On line 7.
Remember that the line numbers change (or might each year) so you don’t have to memorize them. Just know what they are for the year that you are doing your return.
Q.What does code D in box 12 signify?
A. Pre-tax contributions to a §401(k) plan.
Take a look at my previous post for more details on the codes.
Q.What does it mean if the “Retirement Plan” box in box 13 of Form W-2 is checked?
A. It means that the employee was an active participant in an employer maintained retirement plan, such as a §401(k) plan, at some time during 2008.
Q. Where are state and local income taxes withheld entered?
A. On the state and local tax returns and sometimes on federal Schedule A.
Q.If the employee thinks his Form W-2 is not correct, what should he do?
A. If the name or social security number is incorrect, the taxpayer may change it himself and need not obtain a corrected W-2 before filing his tax return. The employer should be notified of the error and asked to update
his records. Furthermore, the employee’s social security number and earnings records should be verified with the Social Security Administration to ensure that the earnings were properly credited.
Q.Where can the regular standard deduction amounts be found?
A. In the left-hand margin at the top of page 2 of Forms 1040 and 1040A. They are: Single and married filing separately, $5,450; married filing jointly and qualifying widow(er), $10,900; and head of household, $8,000. The amounts differ for taxpayers age 65 or older or blind and those who may be claimed as dependents by other taxpayers.
Q.What is the exemption amount for 2008?
A. $3,500 for each taxpayer and dependent.
Q.If the employee thinks his Form W-2 is not correct, what should he do?
A. If the name or social security number is incorrect, the taxpayer may change it himself. If any of the other information is incorrect, he must obtain a corrected W-2 from his employer.
More questions? Ask me and I will try and answer them. Check out my books as well while you are at it!
Oct 26 2009
Kim Isaac Greenblatt
Income Tax Q & A Oxt 26 2009
Tags: Business