Tax Review Jeopardy

1.1

100

What is the difference between net pay and gross pay?

Net pay is after taxes and expenses and gross pay is before taxes (salary). 

200

Name four different types of taxes we pay as Americans

Income Tax, Sales Tax, Sin Tax, Property Tax, Estate Tax, Gas Tax etc. 

300

What are the two components that make up FICA

Social Security and Medicare

400

Explain the difference between mandatory vs discretionary spending.

Discretionary spending is determined every year by Congress and the President. Mandatory is in place every year outside of the congressional budget.

500

What are two examples of employer contributions?

Healthcare and 401k, 403b etc.

1.2

100

When is tax day?

April 15th

200

At what point do you start paying taxes?

When you meet the minimum income requirement.

300

Who has to file a tax return?

1. Amy - she earned $6,320 at her part-time job at the ice cream store over the past year.

2. James - he earned $3,250 as a babysitter for his neighbors’ kids.

3. Sumika - she earned $13,400 over the past year at her internship.

4. Sean - he earned $350 through his graphic design business.

Sumika (bonus 100 points if you explain why)

400

Billy makes $800 from earned income and $400 from unearned income. Does he pay taxes? Explain why.

Yes because unearned + earned income over $1,150 requires taxes paid

500

What tax do self employed people pay to make up for the fact that Social Security and Medicare is not taken out of a paycheck by an employer

SECA

1.3

100

What day do employers have to send you a W-2 form?

January 31st

200

What is the purpose of the W-4 form?

To tell employers how much money to withhold from your check for taxes.

300

Last day to file taxes if you are granted an extension?

October 15th

400

What is the form 1099 used for?

Income that comes from a place other than your job. Examples include interest, dividends etc.

500

What is the I-9 form used for?

To determine if you are eligible to work in the United States.

1.4

100

What are the three ways to file taxes?

Paper filing, electronic, professional accountant

200

What are three factors that impact what method people choose to use for filing taxes?

Income, family, occupation, important life events etc.

300

What are two pros and cons for paper filing?

Pros: In control, free

Cons: Slow, prone to mistakes, less returns

400

On a W-2 wages and income fall under these three numbers while taxes withheld fall under these three.

1,3,5 for wages

2,4,6 for taxes

500

Which method would someone use to file taxes if they came into a large portion of money and why?

Professional, to make sure everything is done legally, as well as making sure you don't pay extra in taxes.

1.5

100

What is a 1040 used for?

Filing a tax return

200

What are three things definitely included on all 1040s?

Name, social security, address, filing status

300

The standard deduction last year and the standard deduction for this upcoming tax season.

$12,950 and $13,850

400

Name two income forms that could be attached to a 1040?

W-2 and 1099

500

Are dependents and income determined on the first or the second page of the 1040 and which has more lines to fill out?

1st page, Income