FAFSA Can Be Taxing!

DAY 1

  1. You will use 3 W2 forms to complete 3 different tax forms: 1040EZ, 1040A, and 1040.
  2. Go to
  3. Click the link for Form 1040EZ. If the link is not on the home page, click in the search box, type 1040EZ, and press Enter; then, click the link for the form.
  4. Type your information from the W2 labeled “Scenario 1” into the matching fields on the 1040EZ.
  5. You do not have any taxable interest or unemployment compensation.
  6. The filing status is married, but the spouse does not work.
  7. You will need to complete the Making Work Pay worksheet on the back of the form as indicated on line 8.
  8. Go back to
  9. Type “1040EZ instructions” in the search box, and press Enter.
  10. Click to download the instructions.
  11. Save the downloaded file to My Documents as 1040EZ Instructions.
  12. Go to Line 9a, then answer questions in order from p. 13 of instructions.
  13. Continue following instructions to find EIC (Earned Income Credit).
  14. Enter EIC, if any, on Line 9a.
  15. Line 9b is blank.
  16. Calculate Line 10.
  17. Go back to
  18. Type “tax table” in the search box, and press Enter.
  19. Click to download the first link (may be 1040 instructions, but this will be the table).
  20. Save the downloaded file to My Documents as Tax_Table.
  21. Locate your income range in the first 2 columns of the table.
  22. Record the tax from the first column (Single) on line 11 of 1040EZ.
  23. Complete the calculations, and print the form.

DAY 2

  1. Go to
  2. Search for Form 1040A.
  3. Click to download the first link.
  4. Complete the information boxes at the top of the form using “Scenario 2” W2.
  5. The filing status is Head of Household (Box 4).
  6. You will check the Yourself box (Box 6a), leave the Spouse box blank (Box 6b).
  7. Enter your first name, last name, 111-22-3333as the social security number, son or daughter as relationship, no checkmark in the box (Line 6c).
  8. Key a 1 on the first line and a 1 on the second line beside Line 6. Then, key a 2 in the box.
  9. Enter Line 7 using your W2 information.
  10. Skip lines 8-14.
  11. Re-enter Line 7 on Line 15, 21, and 22.
  12. Leave Line 23 blank.
  13. Use the Standard Deduction for Line 24a. Skip Line 24b.
  14. Calculate Lines 25-27.
  15. Open your Tax_Table document.
  16. Read your income from the first 2 columns.
  17. Find your tax in the 4th column (Head of Household).
  18. Record on Line 28.
  19. Skip Lines 29-33.
  20. Calculate Lines 34-35, Skip Line 36, Calculate Line 37.
  21. Complete Line 38.
  22. Download Schedule M from
  23. Complete Schedule M, and enter the amount at the end of the Schedule on Line 40.
  24. Complete the remainder of the form 1040A. You will have no more deductions or payments for the other lines except those that require calculations.
  25. Print the completed form.

DAY 3

  1. Go to in 3 Internet windows.
  2. Search for Form 1040, Schedule M, and Schedule A (itemized deductions).
  3. Download each form in its own window, because you will work on the 3 forms simultaneously.
  4. Follow the steps on the Form 1040, line-by-line, completing each item using the “Scenario 3” W2.
  5. You will be Head of Household with the same information on Line 6 as used on Day 2.
  6. Continue completing the form leaving all lines blank except calculated lines until you get to Line 40.
  7. Go to the Schedule A.
  8. Use $6,000 for Medical and Dental Expenses.
  9. Check State Income Taxes, and enter the amount from the box for State Income Taxes on your W2.
  10. Use $8,000 for Home Mortgage Interest.
  11. Use $500 on both lines 16 and 17.
  12. Complete the form.
  13. After entering the amount from Line 29 onto Line 40a of your Form 1040, continue completing Form 1040.
  14. Line 44 will be found using the Tax_Table file.
  15. Complete Schedule M when instructed to do so on the Form 1040.
  16. Continue calculating when instructed to do so, but you will have no other deductions or payments in the remaining sections.
  17. Print all 3 completed forms.

DAY 4

  1. Download and print 3 copies of only pages 2-4 of a FAFSA worksheet
  2. Complete the worksheet for each of your tax forms.
  3. Go to
  4. Key the information from your 3 tax returns printed on Days 1-3 and the FAFSA worksheet to complete the calculations.
  5. Record your EFC when the result is displayed. Be sure to record the EFC and note which tax form it matches.
  6. Open Word Processing.
  7. Insert a table with 4 columns and 7 rows.
  8. Select the first row of the table and merge cells.
  9. Change the font to 14, Bold, Center.
  10. Type My EFC Comparison
  11. Type the remaining information in the cells as shown on the sample table attached to this handout.
  12. Complete the empty cells using the information from each of your scenarios.
  13. You may format the table with an outside border or light shading as you feel necessary to enhance appearance.
  14. Print the table.
  15. Go to
  16. Research various types of financial aid.

DAY 5

  1. Open Word Processing
  2. Change your page setup or layout to landscape orientation.
  3. Insert a WordArt title of your choice with the words Financial Aid Options.
  4. Enter 2X
  5. Change the document to 3 columns with a line between. Be sure to check This Point Forward in the column dialog box.
  6. In column 1, provide information about one financial aid option from
  7. In columns 2 and 3, provide information about 2 other financial aid options.
  8. Add a centered footer with your name.
  9. Print the newsletter.