Tax Forms & Basics
The employee (When they get a new job)
What is taxable income?
The part of the money you earned that can be taxed.
What is the payroll equation?
Gross Pay - Deductions = Net Pay.
Federal Insurance Contributions Act.
Name one thing tax dollars fund.
Roads, Schools, public safety.
Which form uses income and details to calculate how much your employer should withhold?
W-4
What is unearned income?
Money earned from investments, not a job.
What does Year to Date (YTD) mean?
Total earnings/taxes from January 1st to the day of the paystub.
What is the Social Security tax rate?
6.2%.
What is one benefit of filing your taxes online?
Faster refunds/processing.
When are you legally required to start paying income taxes?
When your income is more than the standard deduction.
What is the standard deduction?
A fixed amount that lowers your income that can be taxed.
What is a pay period?
The dates covered by a single paycheck.
What does Medicare tax fund?
Healthcare for seniors and disabled people.
What is one benefit of using tax software?
It does the math for you and guides you step by step.
What form shows you your yearly earnings and tax withheld?
W-2
What is a dependent?
Someone who relies on you for support.
What is direct deposit?
When your pay goes directly into your bank account.
What is Federal Income Tax?
Tax paid to the government based on how much money you have made.
What is one benefit of hiring a tax professional?
Expert help for complex tax situations.
Subtract deductions from total income.
What is a tax refund?
Money you get back that you overpaid your taxes.
What is a payroll card?
A debit-like card that your pay goes onto from your employer.
What two taxes make up FICA?
Social Security and Medicare.
What happens if you owe money when filing taxes?
You paid less than owed and you must pay the rest.