Earnings
Amount of your pay after deductions are taken out.
Net Income, Net Pay, Take-Home Pay
What are the consequences for not filing taxes or paying taxes?
Tax penalties, fines, even jail time in extreme cases
The form that individuals must file to report their tax information to the IRS.
Form 1040 OR Annual Tax Return
What tax system does the United States follow? And how does it work?
Progressive - based on income and split into brackets
This famous business woman made a career from cooking shows and cook books. She commited tax evasion and had to pay $220,000 in back taxes.
Martha Stewart
The total amount you earn before deductions are subtracted.
Gross Income
What is the nation Tax Day?
April 15
A document that employers send to employees that reports wages and taxes for the year.
W-2
When completing the 1040 form, where do you need to go to find the 2024 tax table for line 16?
IRS 1040 instructions document
This female Olympic skier and gold medalist owed $1.7 million to the IRS for failing to pay what she owed in taxes for 2010.
Lindsey Vonn
What does YTD stand for?
Year-to-date
What do taxes go towards? Name 3.
Healthcare, national defense, education, social security, veteran benefits, transportation, environment/energy, interest on debt, unemployment, running the government, commerce/banking, criminal justice
This form tells the employer how much Federal Income Tax to withhold from employee pay and empoyers MUST provide one to employees upon hire.
W-4
Tax programs (Turbo-Tax), going to an accountant
This actor, famous for treasure hunting movies, has suffered tax issues for failing to pay $6 million in taxes and owed $14 million in 2012.
Nicolas Cage
A category of taxes and other amounts taken from your gross pay.
Deductions
How do you receive a tax refund?
Check in the mail or direct deposit
What 2 documents/information do you absolutely need to complete a tax return?
W-2 and SSN
Name and define the 3 types of tax systems.
Progressive - Tax brackets, determined by income
Proportional - Taxed at same rate
Regressive - Rate decreases as income increases
These designers, famously worn for Kourtney Kardashian's wedding, were convicted for failing to file taxes for their business in Italy.
Dolce and Gabbana
Name 3 REQUIRED deductions that employers take out of employee pay.
Can be:
Federal Income Tax, State Income Tax, FICA, Social Security, Medicare
If you get a refund, how is the amount calculated?
Form that proves eligibility to work in the United States.
I-9 Form
Name 2 functions of the IRS.
1. Collecting U.S. Federal Taxes
2. Provide taxpayers with services to understand tax responsibilities.
3. Enforce laws regarding taxes and tax services.
4. Investigate violations to the Internal Revenue Code.
This famous female artist, who's song was sampled in a Drake song, was sentenced to 3 months in prison after failing to pay $1.8 milling in taxes from 2005-2007.
Lauryn Hill