Filing Taxes
The date taxes are usually due.
April 15th
Money earned from working at a job.
Earned income
The amount you earn before any taxes or deductions.
Gross pay
The type of tax you pay on money you earn.
You earn $2,000 at your part-time job. What type of income is this?
Wages
The basic form most individuals use to file their taxes.
1040
Money you receive from owning stock.
Dividends
The amount left after taxes and deductions.
Net pay
The type of tax you pay when you buy items at a store.
Sales tax
You sell clothes on Depop for a profit. Is it taxable?
Yes, if you make a profit
A payment you might get back from the government if you paid too much in taxes.
A refund
Money given as a gift for your birthday.
Unearned income
Money taken out of your paycheck to pay for retirement savings.
401(k) contribution
The type of tax collected on homes and land.
Property tax
Your paycheck says “FICA” on the deduction line. What is that money funding?
Social Security and Medicare
A child or relative who qualifies to reduce your taxable income.
A dependent
Payment you receive for lending money to the bank.
Interest
The form you fill out when you start a job to determine your tax withholdings.
W-4
The agency that collects federal income taxes.
IRS
You paid $3,000 in taxes but your total tax bill was only $2,400.
You receive a $600 refund
A tax benefit that directly reduces the amount of taxes you owe, not just taxable income.
A tax credit
Profit you make from selling an asset like a house or car.
Capital gains
The annual form employers give to show wages and taxes withheld.
W-2
The tax that funds Social Security and Medicare.
FICA - Federal Insurance Contributions Act
You’re 17 and earned $9,000 this year. Do you have to file taxes?
Yes, because income is above the filing threshold