Thursday, April 11, 1996
The 1040EZ tax form suits students since it is designed for
those who have no dependents and an income of less than $50,000By
Lia Ramsey
Daily Bruin Contributor
Thrown somewhere in between term papers, financial aid
applications and URSA appointments is one of the most daunting
deadlines of all: filing taxes by April 15.
But for most students, all it takes to file taxes without
trouble is a pen, the 1040 EZ tax form, a few documents from
employers and an afternoon with no interruptions.
The 1040 EZ tax form was created for individuals who don’t claim
any dependents, and have a taxable income under $50,000 in 1995.
Most students fall into this classification.
"One-half of everybody who received a 1040 EZ packet was a
student," said Glenn Watts, assistant account executive for August,
Lang & Husack, Inc., a public relations company working in the
tax field.
Tax forms are sent by mail, but they are also available at
government agencies, and on campus in the University Research
Library.
The form itself is accompanied by an exhaustive, and somewhat
intimidating instruction booklet. But no matter how daunting the
paperwork may look, a tax return is essentially based on two sets
of numbers: income and deductions.
Income is the money a taxpayer has made throughout the year
 from tips, to wages, to scholarship money  the IRS
demands to know exactly how much citizens take in during the
year.
Deductions, such as owning a home or caring for children, give
taxpayers breaks.
Although most students do not claim many deductions, their
incomes are generally low enough for them not to pay any taxes or
only a very small amount.
The key to filing income taxes is the W-2. This form, which is
supposed to be distributed by companies to their employees months
before April 15, provides most necessary information.
In the case that a W-2 cannot be obtained  as is the case
with many babysitters or housekeepers  the IRS expects
citizens to file accurate records of all income.
Filers also need their 1099-I forms, which state income from
banks, savings and loans, stock dividends, money market
certificates, credit unions and savings bonds.
Once all of the correct numbers have been gathered, entering
them in the correct boxes is the only thing left to do. However,
this is where most people make their errors.
"A lot of the reasons people are having problems with their
taxes is that they’re messing up on their calculations," said Kate
Bochonko of Intuit, the company that publishes the computer
software Turbo Tax.
To avoid mathematical errors, the IRS recommends filers avoid
cents and round all the amounts on the form to the nearest whole
dollar.
It also may be beneficial to use some of the various tax form
preparation services available. There are also printed tax guides,
tax software and tax professionals available specifically to help
filers avoid errors.
However, Andre Guiga, a tax accountant at Budget Bookkeeping in
Santa Monica, suggested that students manage their tax return forms
on their own.
"If you can read a textbook, you can read the form," Guiga
said.
Guiga explained that when people don’t follow the instructions
carefully, the tax return process takes much longer, and it ends up
not even being worth the trouble.
"You do still get the deduction but it takes a lot longer, and
you may have to amend the form. At that point, most people just
don’t want to deal with it," Guiga said, emphasizing the simplicity
of following directions.
Once completing the form, filing the 1040 EZ requires sending
the form in the envelope provided  accompanied by a check of
course if money is owed. Most local post offices are extending
their working hours to accommodate late tax filers.
If the filed return is complete and accurate, any potential
refund will be issued within 40 days. Or, to have a refund directly
deposited to a bank account, complete the Direct Deposit of Refund
form (Form 8888) and attach it to the tax return form. This is a
new service offered by the IRS.
Even after the form is completed and money is on the way, the
IRS recommends filers keep a copy of the tax return, any worksheets
used and records of all items appearing on it.
The IRS can be reached on the World Wide Web at
http://www.ustreas.gov/treasury/bureaus/irs/irs.html.
At UCLA, the Volunteer Income Tax Assistance (VITA) program
offers on-campus tax support. Students who are trained to fill out
tax forms will answer questions and help fill out forms this week
in Ackerman Hall 2412.
For an appointment time or to attend a help session call VITA at
284-7714.