TAX FORMS
what tax form do most employees receive showing how much money they earned
what is a W-2
What is the usual deadline to file your federal income tax return?
April 15th
Define 'Gross Income"
the total amount of money earned by an individual or a business before any taxes, deductions, or expenses are subtracted
What is a tax deduction?
An amount that reduces the income you are taxed on.
Everyone pays the exact same amount of income tax.
False
what form do you use to file federal income taxes?
form 1040
What month does the tax filing season usually begin?
January
define "Taxable Income"
The portion of your income that is actually subject to tax after subtracting your deductions from your AGI
What is a tax credit?
An amount that reduces the taxes you owe.
A tax refund always means you paid too much tax during the year.
Generally true; a refund can also include refundable credits.
What form do you fill out to tell your employer how much federal income tax to withhold?
W-4
What is the usual deadline for employers to send W-2 forms to employees?
FICA tax is...
FICA (Federal Insurance Contributions Act) is a U.S. federal payroll tax that funds Social Security and Medicare
Which usually reduces your tax bill dollar for dollar: a tax credit or a deduction?
A tax credit.
You may need to file taxes even if you work for yourself.
True
What form might an independent contractor receive showing payments they earned?
Form 1099-NEC
If you request a federal tax extension, what is the usual extended filing deadline?
October 15th
define "Itemized Deductions"
Specific expenses (like mortgage interest, medical bills, or charitable gifts) that you track and subtract individually instead of taking the standard deduction
What is the standard deduction?
A set amount that reduces taxable income.
A W-4 and a W-2 are the same form.
What form can you use to request an extension to file your federal income tax return?
Form 4868
If you get a tax extension, does that give you more time to pay taxes you owe?
No, payment is generally still due by the April deadline.
IRS Stands for...
Internal Revenue Service
Can a tax credit sometimes increase your refund even if you owe little or no tax?
Yes, if it is a refundable tax credit.
Tax money helps pay for public services such as roads and schools.
True