This document provides guidance to employees on conducting a year-end tax checkup to estimate their 2011 tax liability and refund. It walks through a series of questions to calculate estimated income, deductions, credits, withholdings and payments to determine what is owed or will be refunded. Key steps include estimating income sources, deductions, exemptions, credits, withholdings and payments to calculate taxable income, tax, and the final estimated balance owing or refund amount.

1. Year End Employee Checkup Presented by Cora Parks Tax Today Tax Solutions Copyright 2011 All Rights Reserved

2. What You Will Need Form W4 Form 1040ES Your Most Recent Check Stub Paper Pen Calculator

3. This Information Is Meant To Serve As A Rough Blueprint Into Your Tax Picture As Of The Close of 2011. It is not meant to be used as the exact liability or refund to be expected once your return is finalized.

4. Select The Filing Status That You Expect To Use On Your 2011 Return Single Married Filing Joint Married Filing Separate Head Of Household Qualifying Widow or Widower

5. Dependency Status Can you be claimed as a dependent on another person’s return? Yes No

6. If You Cannot Be Claimed As A Dependent. Multiply the number of exemptions by 3700. Remember to include your self and your spouse if married filing jointly in this calculation.

7. If You Can Be Claimed As A Dependent, Your exemption amount is zero.

8. For employees, how many jobs did you work in 2011? List the number of jobs. If you were employed at any time during the year, but are not employed now, please account for that here.

9. How many dependents (other than yourself) will you claim on your tax return? List the number.

10. Your Age and Blindness Factor If you or your spouse if married filing jointly, will be 65 or older on January 1, 2012, check here. If either you, or your spouse if filing jointly, are blind, or considered to be legally blind, check here.

11. Your standard deduction is increased by the following amount if, at the end of 2011, you are: An unmarried individual (single or head of household) and are: 65 or older or blind . . . . . . . . . . $1,450 65 or older and blind . . . . . . . . $2,900

12. Your standard deduction is increased by the following amount if, at the end of 2011, you are cont: A married individual (filing jointly or separately) or a qualifying widow or widower and are: 65 or older or blind . . . . . . . . . . . . . . . $1,150 65 or older and blind .. . . . . . . . . . . . . $2,300 Both spouses 65 or older. . . . . . . . . $2,300* Both spouses 65 or older and blind $4,600*

13. If You Can Claim The Child and Dependent Care Credit List the number of qualifying persons and the amount of expense incurred. If you do not have the exact figure, you can give an estimate.

14. Are You Eligible For the Child Tax Credit? List the number of eligible children.

15. Tax Credits That You Will Claim On Your Return Credit for the elderly or the disabled Education credits Adoption credit Foreign tax credit Retirement savings contributions credit Mortgage interest credit General business credit Electric vehicle credit Earned income credit Health coverage tax credit Medical and Dental Expenses District of Columbia first-time homebuyer credit

16. For Those of You That Are Currently Employed, Provide Answers To The Following Questions The total wages, salary, and tips you expect to receive in 2011. If you also receive military retirement or taxable pensions, include them in this figure.

17. For Those of You That Are Currently Employed, Provide Answers To The Following Questions Enter your total 2011 contribution to a Tax Deferred Retirement Plan, Flexible Spending Account, or Health Savings Account.

18. For Those of You That Are Currently Employed, Provide Answers To The Following Questions cont.: Enter the total Federal income tax withheld to date in 2011 (including amounts withheld from bonuses or which you expect to have withheld for bonuses).

19. For Those of You That Are Currently Employed, Provide Answers To The Following Questions: If you had a job that you worked earlier in the year but are no longer there, enter the amount of Federal income tax withheld from your last salary payment.

20. For Those of You That Are Currently Employed, Provide Answers To The Following Questions cont.: Enter the Federal income tax withheld from your last salary payment.

21. For the job(s) you had earlier this year but no longer hold, enter the following: Total wages, salary, and tips. Total contributions to a tax-deferred retirement plan. Total Federal income tax withheld.

22. List The Amount You Received Or Expect To Receive For The Following Types Of Income: Tips (if not already included in the wages you estimated for your jobs). Professional fees paid to you. Any other compensation received for work you performed, for example, in your own business. Any part of a scholarship or fellowship grant includable in your gross income. Bonus income you have already received or expect to receive from your employer this year.

23. List The Amount You Received Or Expect To Receive For The Following Types Of Income cont: The total of any unemployment compensation you received or expect to receive in 2011.

24. List The Amount You Received Or Expect To Receive For The Following Types Of Income: The amount or estimate of any other nonwage income (such as dividends, interest, or alimony) you received or expect to receive in 2011.

25. Enter an estimate of your 2011 adjustments to income, such as the following: Education loan interest Alimony paid Deductible IRA contributions

26. Subtract The Following Standard Deduction Amount Based On Your Filing Status. Married filing jointly or Qualifying widow or widower $11,600 Head of household $8,500 Single or Married filing separately $5,800

27. If you can be claimed as a dependent on another person’s 2011 return, your standard deduction is: $950, or Your earned income plus $300 (up to the standard deduction amount).

28. If you expect to itemize, enter an estimate of your 2011 itemized deductions for the following: Medical and Dental Expenses Taxes You Paid Interest You Paid Gifts to Charity Casualty and Theft Losses Job Expenses Other Miscellaneous Deductions

29. Once you have all of the numbers in place, the math goes like this: Add Income Items. Subtract Adjustments To Income. Subtract Itemized Deductions/Standard Deduction. The result is the taxable income.

30. Once The Taxable Income Is Determined, Calculate your tax using the 2011Tax Rate Schedules found on page 6 of the Form 1040ES. This figure is your tentative tax before credits.

31. Once Your Tax Has Been Determined, Subtract your credits calculated earlier from this amount. The result is your total tax.

32. Wait, we’re not done yet. Subtract the following from the total tax. Federal Income Withheld Estimated Tax payments made Earned Income Credit Additional Child Tax Credit Fuel Tax Credit Refundable portion of the American Opportunity Credit Other credits

33. The result is an approximation of what you will owe or what your expected refund will be.

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