Tax Return
What is net pay?
Take - home pay
What is the basic tax form for individuals?
Form 1040
Are wages earned income or unearned income?
Earned Income
The government does not have the right to force taxpayers to pay tax.
False
What is Income Tax?
Federal, state, and local taxes on income, both earned (salaries, wages, tips, commissions)
Income taxes are collected through withholding (or deducting) money from your________.
Paycheck
When do people usually receive a W -2 form?
At the end of January or in February
What is an example of non-taxable income?
Child support Public assistance and food stamps SSI Gifts
What do you call the taxes you pay if you own your home?
Real Estate Taxes
If you live in Florida or other state, where should you send your tax form if you are expecting a refund?
Department of the Treasury Internal Revenue Service Kansas City, MO 64999-0002
What the government uses the taxes for?
To provide public goods and services for the benefit of the community as a whole.
What do you need to do with the W-2 Form?
You need to send it with your tax return.
Who need to fill income tax?
People who work for an employer or work for themselves and earn more than $13,500.
When people don't report their earnings, they are participating in an underground economy. True or False
True
What should you do if you cannot file your tax return on time?
File Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Tax Return)
Besides taxes, employees may have other deductions taken out of their paycheck. Give two examples.
Retire Plan as 401K or health insurance
The U.S. Income tax system is built on the idea of involuntary compliance.
False
Who is responsible for calculating taxes and filing tax returns?
Taxpayer
A tax refund is...
Money owed to taxpayers when their total tax payments are greater than the total tax