Basics
What are taxes?
-Mandatory fees collected by the government for government services for the well-being of society
Personal Income Tax
A directed tax on most forms of incomes earned by individuals.
Tax evasion
Not paying your taxes, or incorrectly reporting how much you make
Tax refund
A tax refund occurs when you’ve paid more in taxes than you owe, often through paycheck withholdings
What is the deadline for filing taxes? (monthy only)
April
What isn't taxable?
Gifts + Inheritances
Direct Taxes
Taxes directly paid by a person/organization to the government that imposed the taxes. (Property taxes, income taxes)
Types of filing status'
Single, Married/Jointly, Head of Household
Sin taxes
Taxes on things that aren't good for you. (cigarettes & alcohol)
What do you need to file your taxes?
W-2
How old are taxes?
Over 5,000 years ago. Goes back to ancient civilizations, as long as we've had records of organized society.
Indirect Taxes
What are some items that have luxury tax?
Social Security
U.S. government program that provides financial support to retirees, disabled individuals, and survivors of deceased workers, funded through payroll taxes
True or False: Filing your taxes is free
True. You can e-file your taxes through websites, or do a file using tax paperwork.
True or False: If you don't file your for the following year by April, you will not receive your refund.
False. You have 3 years to claim a tax refund.
What are city taxes used for?
police, fire departments, local infrastructures
Progressive tax system
Paying more taxes when your pay increases
Medicare
U.S. government program that provides financial support to retirees, disabled individuals, and survivors of deceased workers, funded through payroll taxes
Depends on your filing status.
Federal: national defense, social security, infrastructure
State: public education, transportation, and healthcare.
What items are exempt from sales taxes?
Food & prescription drugs and other necessities
Regressive Tax System
How many tax brackets are there?
7
What is the amount that a minor can make without having to file taxes in 2024?
$14,600