Taxes 1
What Paycheck withholdings puts money into a retirement investment fund that you will manage?
401K
When do you start paying income taxes?
When you make more than the minimum income requirement
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
This tax form is used by employees to tell their employer how much tax to withhold from their paycheck
a W-4
If you don’t file your taxes on time, you may have to pay this
late penalty
What does the term "withholding" mean in reference to your paycheck?
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
Why is it important to be extremely careful when completing your 1040 form?
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
What does the term "withholding" mean in reference to your paycheck?
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
This number, assigned by the government, is used to track your earnings and tax records.
Social Security number (SSN)
The term for the amount of money you actually take home after taxes and deductions.
net income (or take-home pay)
Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. What step is she responsible for?
Complete a W-4 form
Why is it important to be extremely careful when completing your 1040 form?
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
This federal agency is responsible for collecting taxes in the United States.
the IRS
The percentage of your income that is taken for federal income taxes depends on this.
tax bracket
This is the amount of money you earn before any taxes or deductions are taken out
gross income
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
refund
What describes a "dependent" for tax purposes?
is a person who relies on the taxpayer for financial support and meets certain IRS criteria.
This is the day taxes are usually due each year, unless it's a weekend or holiday.
April 15th
If you pay too much in taxes during the year, the IRS sends you this
a tax refund
This tax, taken out of most paychecks, helps fund healthcare for people age 65 and older
Medicare tax
Mandatory government spending includes which of the following?
Social Security and Medicare
If your only income is salary paid by your employer, what about filing your taxes is true?
You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
The form most employees receive in January that shows their earnings and taxes withheld.
a W-2
This is the process of reporting your income, deductions, and credits to the government each year.
filing a tax return
If you owe taxes but don’t pay by the deadline, the IRS may charge you this extra fee.
interest (or a penalty fee)