Tax Basics
What is the purpose of taxes?
Option 1
Provide income for federal, state, and local government to fund essential services that benefit all citizens.
Mrs. Hansen can be claimed as a Dependent.
False
I am given to you when you get a job to prove eligibility for employment.
Form I-9
What is FICA? (not what it stands for)
Required taxes that come out of your paycheck.
What is one example of a tax?
Mrs. Hansen will see what you put.
We know that the IRS administers and enforces the Internal Revenue Code, what does IRS stand for?
Internal Revenue Service
You file your Federal Taxes first.
I am the form that determines withholdings on your paycheck.
W-4
What are the two types of FICA taxes?
Medicare and Social Security
What are the three most common taxes?
Sales, Property, Income
What does your Income Tax go to?
Federal & State Taxes
Sales tax is the same in every state.
False
I am the the state income tax for Wisconsin.
Wisconsin Form 1
Yes or No:
Both you and employer pay a % of your paycheck towards FICA taxes.
YES
What does the IRS stand for?
Internal Revenue Service
If money is held from your check to pay your State and Federal Income Taxes throughout the year, what is it called?
Witholdings
A W-4 is sent by your employer in January.
False
I am received if you earn additional income without being an employee for the company.
Form 1099
What percentage of your paycheck goes to the Social Security tax?
3.2% 5.1% 1.2% 6.2%
6.2%
What is an example of Excise Tax?
Tax on Gas, Cigarettes, Alcohol
What is the minimum amount your income has to be to pay the federal income tax?
$14,600
Social Security is a federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
False
Why must you complete federal (Form 1040) first?!
The 1040 calculates information needed for the Wisconsin Form 1.
What does FICA stand for?
Federal Insurance Contributions Act
What percentage of your paycheck goes towards Medicaire?
6.2% 12.3% 2.1% 1.45%
1.45%