Vocabulary
Why do we file taxes?
To report income to the government and figure out if we owe extra taxes or need to be refunded
What government agency collects federal income taxes?
the IRS
Vianey makes a taxable income of $78,175 and is single. What is her federal tax?
$12,113
What is Bill's total sales tax paid?
$930
What form does your employer give you that summarizes your income for the year?
W2
What form do YOU fill out when you submit your tax return to the government?
1040
Vilma and her spouse make $78,200 and are filing jointly. How much is their tax?
$8,910
What percent of his salary does Rob pay in sales tax?
1.7%
Give an example of unearned income
interest income, gifts, inheritances, lottery winnings
Sarah has $18,000 in deductions. Should she itemize or take the standard deduction?
itemize
Perla is filing as head-of-household, and has a taxable income of $78,100. What is her tax?
10,363
Is sales tax regressive, progressive, or proportional?
Regressive, since it makes up a larger percentage of low-income people's salaries
What is it called when low-income people pay a higher percentage of their income to taxes than high-income people?
Regressive
When do dependents have to file a tax return?
When they make more than $15,750
What is Ms. Anker's son's name?
Silas
2.67%
Give an example of a payroll tax
Social Security
Medicare
Give a reason a dependent making $10,000 a year might want to file a tax return?
To get a refund on federal taxes paid
Imagine a couple where only one person works (the other stays home to watch their child). The working parent makes $78,170.
How much less will they pay in taxes if they get married?
$3209
Portland has no sales tax. Name a pro and a con of this.
Pro: sales taxes are regressive and unfair to low-income people
Con: tourists don't pay sales taxes which means income taxes are higher for Oregon residents