Terms and Phrases
IRS stands for...
Internal Revenue Service
Which form do you use your W2 to fill out, then send to the IRS?
1040
Name something that state and local taxes do not pay for.
Answers may vary.
When you have a job and make more than the minimum income requirement.
Name one state that does not have state income taxes.
As of 2023, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
refund
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
What are state and local taxes used to pay for?
Answer may include: roads, schools, police, firefighters, etc.
Unless you get an extension, by what date do you need to file your taxes?
April 15th
Describe a situation where you would file state income taxes in more than one state.
Answers may vary. You could move, working and living in both states in one year, you could own property in one state and work in another, etc.
The total amount of money earned before taxes are taken out is called...
gross pay
Which form does your job send you that shows your gross pay for the year?
W-2
What is the second largest category of government spending?
Military
Who can file as a dependent?
A child under 19 (or 24 if in college) or an adult who makes under a certain amount of money and has 50% of their needs paid for by someone else and who lives with that person all year.
Unless you get an extension, on what date are state income taxes due in Massachusetts?
April 15th
Someone you support, or provide at least half of the person’s total food, shelter, and clothing for the year is called a...
dependent
What paycheck withholding puts money into a retirement investment fund that you will manage?
401(k)
What is the largest category of government spending?
Healthcare
Who cannot file as a dependent?
Answers will vary based on age, education status, or amount earned.
__________ means all residents pay tax at the same rate.
Flat income tax
The word for how much being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement.
Which form will determine how much money is withheld from your paycheck for taxes?
W-4
Medicare and Social Security are examples of what type of government spending?
Mandatory Spending
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will owe a payment to the IRS
_____________ means people at higher levels of income pay higher rates of taxes.
Progressive income tax