W's
Why should you accurately complete a W-4 form any time you start a new job or change your tax status?
Your W-4 determines how much Federal income tax money your employer should withhold
What is the largest source of income for the Federal government?
Income tax
When people refer to "Tax Day" they mean...
April 15th - the deadline to file your taxes
Name one pro and one con of filing a paper return
Paper filing your tax return is free, but it takes a lot longer to process and get back a refund if you are owed one.
What are three things you look for on your pay stub to make sure you are paid correctly?
Date, Pay Rate, Number of Hours, Total Pay, Deductions
When should an employee receive a W-2 from thier employer?
It should be mailed by January 31st.
The Federal government spends the most amount of tax money on...
Healthcare
How does your political party affiliation affect your tax rate?
It does not.
There are many ways to pay the taxes you owe. Is Venmo a good option?
No - the IRS does not take Venmo.
What are allowances and how do they affect your paycheck?
The number of dependents you want to claim so your employer takes out less for taxes.
Jay filed his taxes and found out he owes money. What can he do to prevent this from happening next tax year?
He can decrease the number of withholdings and/or have his employer take out extra using a W-4 form.
What does it mean when we say the US tax system is a progressive tax system?
Our current system is described as being a progressive system because it imposes higher rates on those who earn more.
Who is legally required to file a tax return?
Anyone who make smore than the minimum tax amount.
A dependent is someone who...
relies on someone else to provide more than half of their financial support.
Congress changed tax law in February 2020. How will that affect your 2019 taxes if you hadn't filed yet?
It won't. Tax year runs January 1 - December 31.
If you claim a large number of allowances on your W-4 form, your taxes withheld will...
decrease, and your take-home pay will increase
Name 3 things funded through your taxes.
Roads, Schools, Police, Fire Fighters, Traffic Lights, Military, Government Services, Social Services, etc.
Tamara found out that she owes $3,200 in taxes. She cannot afford to pay the entire amount right now, so she is going to arrange an installment plan with the IRS. What is the one thing that Tamara should be prepared for?
She will pay more than $3,200 because she will be paying additional money in interest with each payment.
When you sit down to file your 1040 form, which document(s) should you have in front of you?
W-2, Social Security Card, and any other tax documents you received.
How do you calculate Net Pay?
Gross Pay - deductions
Do earnings from saving and investment show on your W-2?
Earnings on interest from saving and investing do not show on your W-2.
What is FICA?
Social Security and Medicaire
Are cash tips taxable?
Yes
What form do you use to file a tax return with the IRS?
1040
What is a 1099 and when is it used?
Form received from a business showing your income when they hire you as an independent contractor.