II. PREPARING TO FILE

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• II. PREPARING TO FILE
• Once you have gathered your ______ and expense
  records, you can make a _____ draft of your tax
  return.
• The ___ booklet that accompanies the printed
  forms contains the instructions for completing
  the forms.

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• A simple ______ tax return may require only __
  minutes to prepare.
• The ____ _____ ____ may require most of a ___
  after you have gathered all information.
• In addition to a federal tax return, you may have
  to file state and local income tax returns.

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• WHO MUST FILE?
• You must file a tax return if you earned more
  than a certain amount specified by the
  __________.
• In 2006, a single person under age 65 had to ____
  __ ___ _______ if he or she earned more than
  8,450.
• If you earned less than the minimum, you may
  still have to file if you meet other
  _____________ outlined in the instructions.

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• If you did ___ earn enough to owe taxes but you
  had _____ _______ from your paychecks, you must
  file a return to _______ the taxes withheld.
• If you do not file, you will ___ get a ______.

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• B. WHEN TO FILE?
• You must file no later than _____ __ of the year
  after you earned income.
• If April 15 falls on a weekend or holiday, your
  tax return is due on the next _______.
• If you file late, you will have to pay ________
  and ________ charges.

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C. WHICH FORM TO USE? Although there are nearly
400 federal tax forms, all taxpayers must use
____ __ ______ basic forms when filing their
return. You must decide whether to fill out a
_____ form (1040A or 1040EZ) or to itemize your
deductions using the ______ form (1040).
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Which form you choose will depend on the type
and amount of your ______, the number of your
__________, and the complexity of your tax
__________. In general, if your deductions add up
to ____ than the _________ __________, your total
tax will be lower if you use Form 1040 and
_______ your deductions.
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• Taxpayers who earn more than 50,000 in taxable
  income must use ______ ________.
• Those with taxable income less than 50,000 may
  use ___ of the three forms.
• If you have no deductions or credits, less than
  1,500 in interest income,
• and no _________, use Form 1040EZ, the ________
  form.

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• However, if you qualify for any ________ and
  _________ listed on
• Form 1040A, use that form.
• If you have enough deductions to benefit from
  itemizing, use
• Form 1040.
• D. WHERE TO BEGIN?
• During the year, save all _______ and proofs of
  payment for your itemized deductions.

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• You will need these ________ to prove the
  accuracy of your tax return if you are _______.
• Save all employee withholding records, such as
  your _______ stubs.
• By January 31 you should receive your ________
  from each of your employers.
• _______ it with your records to check for
  accuracy.

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Any discrepancy between the Form W-2 and
your records should be reported ____________ to
the employer and corrected. It is wise to
prepare your tax return _____as soon as you
_______ your Form W-2 and any Forms 1099, which
report other income you received.
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• Gather all other necessary information, including
  instruction ________ and last years tax return
  as a _____ for preparing this years return.
• If you have a refund coming, the ______ you file,
  the sooner you will receive it.

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Once you have gathered all your information,
prepare both the _____ and the _____ form to
determine whether you can save money by itemizing
__________. Even if you hire a professional tax
preparer, you are responsible for __________
accurate and complete information. Hiring a tax
preparer will _____ guarantee that you are paying
the correct amount.
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You must _____ the form before you sign it. If
you discover an _____, you may file an amended
return (_____ ______) to make corrections. ______
copies of your tax returns, together with all
supporting evidence (receipts) and Forms W-2 and
Form 1099, for ____ years.
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E. FILING ELECTRONICALLY You can choose to file
your return electronically through the IRS
________ program. Instructions for electronic
filing appear on the IRS Web site at
www.irs.gov/efile. This Web site also allows you
to pay electronically using a ______ card or a
______ card.
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• If the government _____ you a refund, you can
  have the refund_________ to your bank account
  electronically.
• If you file electronically, be sure to _____ __
  _____ of the tax return for your records.
• PREPARING YOUR INCOME TAX
• RETURN
• You must complete the tax return in ____ or
  ______ with no errors or omissions.

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• The _________ provided by the IRS have
  line-by-line ____________ that explain each
  section of the form.
• Tax Preparation Software
• Most professional tax ________ use a tax
  preparation computer program.
• You can use tax preparation ________ to do your
  own taxes if you like.

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Good software provides all the necessary ______
and leads you through the process of _______ out
the forms. Most tax software also provides _____
and additional information to help you identify
all the deductions and credits you are
_______.
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• Search the Internet to find information about
  different brands of ____ ________.
• Software producers usually provide a feature ____
  at their Web site.
• FORM 1040 EZCase Studies
• FORM 1040 ACase Studies
• FORM 1040Case Study