Federal
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal and state income taxes?
W-2
W-4
I-9
1040
W-4
What does the term "withholding" mean in reference to your paycheck?
It is the amount of your paycheck that you are NOT being taxed on.
It is how much is being taken out of your paycheck in taxes.
It is how much you are going to owe the government when you file your annual tax return.
It is how much you earn and includes salary, bonus and commissions.
It is how much is being taken out of your paycheck in taxes
Why should you accurately complete a W-4 form any time you start a new job or change your tax status?
You need a copy of your W-4 to file your tax return annually
Your W-4 determines how much Federal income tax money your employer should withhold
Your W-4 determines your total tax bill at the end of the year
Completing a W-4 will guarantee you receive a large tax refund
Your W-4 determines how much Federal income tax money your employer should withhold
True or False: You need a W-2 form only for filing your federal taxes, not your state taxes.
False
What is it called when someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes
Dependent
Which of the following have typically been the three largest categories of federal government spending?
Infrastructure, Defense, and Science
Health, Military, and Interest on Debt
Veterans, Infrastructure, and Education
Education, Defense, and Food/Agriculture
Health, Military, and Interest on Debt
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
401(k) contribution
Why is it important to be extremely careful when completing your 1040 form?
Making even one mistake on your federal taxes can result in your being convicted of a crime
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
Mistakes on your 1040 form make you ineligible for employment during the next year
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company?
You need to file your tax return by the end of the calendar year (typically December 31st)
If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return
You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money
You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
What is a government-run insurance program that provides healthcare assistance to low income Americans
Medicaid
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…
What state do you live in?
Which statement about filing a tax return is FALSE?
It is how much is being taken out of your paycheck in taxes.
What form am I? I am received when you start a job. You use me to prove that you are eligible to work in the U.S., and you must provide forms of identification when submitting me.
I-9
Your friend Laila is talking to you about the benefits of tax filing software. Which of the following is true?
You can avoid the costs of having to pay a professional, though you may have to pay for the software and/or e-filing online.
A government-run insurance program that provides healthcare assistance to elderly and disabled Americans
Medicare
List two things the federal government spends your tax dollars on that you benefit from.
[Answers may vary] Below are a few examples
Identify two deductions you will see on your pay stub.
Which of the following statements about the W-2 form is TRUE?
You need a separate W-2 form from EACH of your employers in order to file your taxes
What is the deadline to file your tax return?
April 15th of the following year
What document is attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.
Paycheck Stub
Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?
$500
Marquis is starting a fast food job during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. He earns $2000. Based on how he completed his W-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April?
Nothing will happen, but Marquis will miss out on his potential refund.
Ray worked at a cafe while he was a college senior in Boston, Massachusetts. After graduating in June, he moved back to his home in California and started a full-time job in September. Which of the following statements is true?
Ray will need to file a federal tax return and a state tax return for both Massachusetts and California.
Give two reasons for why someone would go to a tax professional (rather than using tax filing software or using the paper forms) to file his/her tax return.
A range of income amounts that are taxed at a particular rate
Tax Bracket