General
What are taxes?
Mandatory payments people make to governments
Does your standard deduction increase with inflation?
Can you write off your mileage if you are a W2 employee?
Generally, no unless you are a statutory employee.
Amount earned before deductions and tax credits (Name the term)
gross income
Is a 529 education plan a good plan for college?
Yes!
Institution that collects federal income taxes in the United States (Name the term)
IRS (Internal Revenue Service)
Do you pay taxes on your 401K contributions
No
What is the mileage rate for 2024?
$.67
People who make under $12,400 per year do not pay annual income tax. True or False?
True
Can you deduct interest from a student loan?
Yes
What is an itemized deduction?
eligible expenses that individual taxpayers can claim on federal income tax returns that decrease their taxable income
Do you pay tax on your Roth contribution?
Yes, but not when you make a distribution if you are of age.
Can you claim mileage for charity services?
Yes, you can claim $.14 per mile.
What is income tax?
A tax that is placed on how much income an individual makes.
Can you use the American Opportunity Credit for graduate school (5th year and beyond)?
No, only for the first four years of a higher education institution are eligible.
When is Tax Day?
April 15
If your tax liability is $0, do you get any money back from a non-refundable tax credit?
No, only refundable credits are eligible.
You can claim actual expenses and mileage, true or false?
False, you can only claim one method.
Can a donation to a Charity to reduce your taxes? Why or why not?
Yes, they are a 501(c)(3) meaning donations are tax deductible
Can you use the Lifetime Learning Credit on your graduate degree (5th year or more)?
Yes, it can be used every year.
Does a Non-Profit need to file taxes? Why or why not?
Yes, they are a designated non-profit 501(c)(3)
How much is the dependent credit (child tax credit) per child?
$2,000
Can you fully depreciate your business vehicle in 2024?
No, only 80% in 2024 and will decrease by 20% for the next four years.
If I am self-employed, what is the minimum amount I have to make in a year to be required to file a tax return?
$400
Can you phase out of the education credits?
Yes, if you make too much money, you can phase out of the credits.