Preparing and Filing Tax Forms
When is the tax filing deadline for individuals and businesses in the United States?
April 15
What is another term for total earnings?
Gross Pay
What type of tax is typically not levied on essential goods such as food, clothing, and medicine?
Sales Tax
What is the definition of income?
Money an individual or business earns or receives as the result of economic activity.
What is the deadline for employers to deliver Form W-2 to employees?
January 31
Which document summarizes income from wages, salaries, and tips?
W-2
What percentage of an employee's earnings is currently withheld for Social Security tax?
6.2%
Which tax typically funds public services like schools, roads, and emergency medical services?
Property Tax
How is overtime pay calculated according to the Fair Labor Standards Act (FLSA)?
At least 50% more than an employee’s normal wage
What amount is deducted from earnings for Medicare tax on the first $200,000 of income?
1.45%
Which filing status is used by single individuals who support a dependent and pay more than half the cost of keeping up a home?
What is the purpose of a Form W-4?
To claim withholding allowances
What is a progressive tax system?
A tax system where tax rates increase as income increases
What type of income is a commission?
Earned Income
What should you do if you need more time to file your tax return?
File for an extension
Which form is used to report interest income from banks?
Form 1099-INT
What 3 items of information does a pay stub typically include?
Total earnings, deductions, and net pay
What does FICA stand for?
Federal Insurance Contributions Act
Name an example of unearned income.
Interest from a savings account, Dividends from investments, Rent from property.
What is the total FICA tax rate for self-employed individuals?
15.3%
What type of income is reported on Form 1099-NEC?
Payments made to non-employees for services
What is the main purpose of a pay stub?
To detail an employee’s total earnings and deductions
What taxes is only imposed on employers and not employees?
Unemployment Tax
Which form of income is primarily received from government programs?
Transfer Payments
What distinguishes unearned income from transfer payments?
Transfer payments are usually received from the government