Reading Paystubs
Taxes and Fees
Tax Brackets
Calculate
W-2, W-4, Refunds
100
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck.
Net income
100
When is Tax Day?
April 15
100
What is a marginal tax rate?
Highest tax bracket your taxable income falls in
100
How do you identify your taxable income?
This number can be found by subtracting the standard deduction from how much money you made in the calendar year (gross income).
100
Why is it necessary to have a W-2 or 1099 form when preparing your tax return?
They report income which needs to be used to file taxes.
200
What is John Doe's gross income?
$800
200
How does the government pay for roads, schools, and emergency services?
They are funded through taxes.
200
The actual percentage of your taxable income that you end up paying in taxes.
Effective tax rate
200
When preparing your taxes, what can possibly help reduce the amount of taxes that you owe?
Credits and Deductions (i.e. child care credits or 401K contributions)
200
What is the W-4 tax form used for?
Indicate how much federal income tax your employer should withhold.
300
What is John Doe's YTD Gross income?
$4,000
300
Why is preparing taxes different for people living in different states?
Everyone must file federal taxes, but each state has different tax laws.
300
Susan is a single filer in 2024. She made $40,000 in 2024. The standard deduction in 2024 for single filers was $14,600. What is Susan's marginal tax rate?
12%
300
Identify the four steps for calculating your total tax due.
Step 1 - Identify taxable income
Step 2 - Identify all applicable tax brackets
Step 3 - Calculate tax percentages for each bracket
Step 4 - add all bracket percentages together
300
Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year
W-2
400
What are John Doe's total deductions?
$222.16
400
These taxes come out of a person's paycheck and are meant to help support people once they retire
FICA Social Security Tax
400
Susan is a single filer in 2024. She made $40,000 in 2024. The standard deduction in 2024 for single filers was $14,600. What is Susan tax due in the 12% bracket?
40,000-14,600 = 25,400
25,400 - 11,600 = 13,800
13,800 x .12= 1,656
ANSWER - $1,656
400
Cole is the head of the household. He made $100,000 in 2024. The standard deduction in 2024 for heads of household was $ 21,900. What is Coles total tax due?
$10,541
400
Form 1040 and Form 1040EZ are
Forms for filing income tax returns
500
What are the four deductions made on this paycheck?
Federal Income Tax
FICA Social Security
FICE Medicare
State Income Tax
500
The MAIN source of federal government revenue
Personal Income Tax
500
Susan is a single filer in 2024. She made $40,000 in 2024. The standard deduction in 2024 for single filers was $14,600. What is Susan's effective tax rate?
40,000 - 14,600 = 25,400
11,600 x .10=1,160
25,400 - 11,600 = 13,800 x .12 = 1,656
1,160 + 1,656 = 2,816
2,816/25,400 = .11
Answer - 11%
500
Cole is the head of the household. He made $100,000 in 2024. The standard deduction in 2024 for heads of household was $ 21,900. What is Coles effective tax rate?
13%
500
Above is a sample W-2 Form. What is shown in boxes 2,4, and 6?
Money that has been withheld from paychecks and paid to the government.