Forms
Describe a W2 Form.
What is a form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck?
Received in January; One for every place you work;
What are deductions?
The three levels that government collects taxes.
What are Federal, State and Local taxes?
This is the standard deduction for 2021 employees (filing in 2022).
What is $12,550 for wages earned?
This is the day when you can begin filing your tax return.
What is January 1st?
Describe a 1040 Form.
What is the standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns?
Explain filing status.
What is a category that defines the type of tax return an individual will use, primarily based on marital status; it also determines the size of your tax brackets and how much of your income is taxed at each rate
Define mandatory spending.
Spending by the federal government required by previously existing laws, including funding programs like Social Security and Medicare/Medicaid
This is the standard deduction for the self-employed for 2021 (filing in 2022).
What is $400?
This is the deadline that employers have for sending out W-2 forms to employees.
What is January 31st?
Describe an I9 Form.
What is the form used by an employer to verify an employee's identity when they start a job and to establish that the worker is eligible to accept employment in the United States?
2 Forms of ID are required.
What are two things that could affect the amount of money taken out of your paycheck in taxes?
What is:
Your salary
Your number of dependents
Your filing status
Where you live (state & local level)
Define discretionary spending.
What is spending by the federal government determined by legislative action and approved through votes by elected officials?
Define "exemption".
What is the set amount of money, per dependent, you can subtract from your taxable income?
This term is the minimum amount of earned income that requires people to file taxes.
What is standard deduction?
Describe a W-4 form.
What is a form completed by an employee when you start a new job (or have a status change) to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck?
Explain what "benefit" means.
A cost, such as health insurance, paid in full or in part by an employer.
Define Medicare.
What is a government-run insurance program that provides healthcare assistance to elderly and disabled Americans?
These tax deductions are taken out every person's paycheck in the United States.
What are Federal Income Tax and Payroll Tax?
List 3 ways you can pay your income taxes, if you owe the government money.
Direct Withdrawal Payment from Bank Account
Debit Card / Credit Card
Check / Cash
Money Order / Wire Draft
Describe a 1099 Form.
Form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors. It is the equivalent of a W-2 for people that are employees.
There probably were not taxes withheld.
Define Taxable Income.
What is the amount to be taxed after all of the pre-tax deductions have been taken out of your gross pay?
Define Social Security?
What is a federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
This is a federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare
What is Federal Insurance Contributions Act?
(FICA)
3 specific reasons why you would use a tax professional.
What are complicated taxes?
Status changes (married or divorced or widowed); Selling our Buying Property; Inheritance; Death