Taxes
What are tax deductions?
Expenses or allowances that reduce taxable income which can help lower the amount you owe.
What is a W-4 used for?
A form used by employees to specify their withholding allowances which is useful in finding how much income tax should be withheld.
What is income tax?
What is the IRS?
The Internal Revenue Service is responsible for collecting taxes and enforcing tax laws.
What is a tax bracket?
A range of income levels that are taxed at a specific rate.
What is a 1099 form?
A form used to report types of income for the IRS
What is the difference between gross income and net income?
Gross income is your total earnings before any deductions, net income is the amount you take home after taxes and deductions
What is the deadline for filing federal income returns?
April 15th
What is the difference between a tax credit and tax deduction?
Tax reduction reduces your taxable income while a tax credit directly reduces the amount you owe.
What is the purpose of a W-2?
Used by employers to report and employee's annual wages and the amount of taxes withheld during the year.
What tax credits is most commonly available?
What is Child Tax Credit?
What is the difference between state tax and federal tax?
State income taxes are collected by individual states with their own rates while federal income taxes are collected by the U.S. government.