Tax Basics
What government agency collects Federal taxes?
The IRS
Do deductions lower your taxable income or increase it?
Lower it
What filing status is for someone who is not married?
Single
Money returned if you paid too much tax
What form do most people use to file their federal taxes?
Form 1040
What form shows how much you earned from an employer?
W-2
What is a tax credit?
Money that directly reduces the taxes you owe
Married filing jointly or separately
What happens if you don't pay enough taxes during the year?
You owe money
Total income before taxes or deductions
What type of income comes from freelance or side work?
Self-employment income
Which is better: a deduction or a credit?
A credit
What status is for someone supporting a dependent and not married?
Head of Household
What is withholding?
Money taken from your paycheck for taxes
April 15
What form might you receive for contract work?
1099
What is standard deduction?
A fixed amount you can subtract from income
What does filing status matter?
It affects tax rates and deductions
What is direct deposit for taxes?
To submit your income and tax info to the government
Name one other type of taxable income besides wages
Interest or tips or investments
What is one example of a tax credit?
Child tax credit or education credit.
Which filing status usually gives the best tax benefits for couples?
Married filing jointly
Penalties or fines