Financial Literacy: Unit 5 (Taxes)

Taxes & Paychecks

100

Earnings BEFORE taxes are taken out of your paycheck is known as ______ ______; Earnings AFTER taxes are taken out of your paycheck is known as ______ ______.

Gross Pay; Net Pay

200

What are the top 3 things the government spends tax revenues on?

Social Security; Medicare; Defense/Security/Military

300

Social Security and Medicare taxes collected by the government and put into their ______ fund; Federal and State taxes collected by the government are put into their ______ fund.

Trust; Federal

400

List TWO types of pre-tax deductions that can be taken out of your paycheck.

Health Insurance; 401(k)/403(b); Pension; Health Savings Account (HSA); Childcare

500

There are three overall tax categories that need to be subtracted from gross pay in order to calculate net pay. What are they?

Gross Pay MINUS Pre-Tax Deductions - Employee Taxes - Post-Tax Deductions = Net Pay

W-4 Form

100

When should a W-4 Form be completed by an employee?

Before starting a new job (latest would be first day on the job)

200

List three things that would cause someone to update their W-4 Form.

Name Change; Address Change; Dependent Change; Filing Status Change; Start 2nd Job

300

The W-4 Form should be given to who once completed?

The employer (more specifically the HR Department).

400

You have a 25 year old son and an 18 year old daughter who live with you. Who earns you more of a tax credit?

Neither; they both would earn a $500 tax credit (both over the age of 17).

500

In your household, you have the following:

12-year-old child

18-year-old-child

24-year-old-child, who pays for their own rent/food

72-year-old grandparent

How much can you claim in total (in dollars) on your W-4?

$3000

Tax Forms

100

This tax form must be filled out whenever starting a new job.

W-4

200

This tax form must be provided by your employer each January so you can complete your taxes for the previous year.

W-2

300

This tax form is the one you submit to the IRS when filing your taxes.

1040

400

This tax form identifies you as a legal citizen of the United States.

I-9

500

This tax form is for independent contractors to complete.

1099

Tax Cycle

100

The tax year runs from what date to what date?

January 1st to December 31st

200

This is the deadline an employer has to get you your W-2 Form.

January 31st

300

This is the last day to file your taxes.

April 15th

400

This is the last day to file your taxes if you're granted an extension.

October 15th

500

This is technically the first date you can file your taxes.

January 18th (assuming you have your W-2 from your employer available)

Miscellaneous

100

What is the most expensive way to file your taxes?

Tax Professional (CPA)

200

What is the most unsafe way to make your tax payments?

Venmo/Paypal

300

Money made from investments (capital gains) is known as _______ ________.

Unearned Income

400

You earn $12,000 at your part-time job and $1,400 from your investments. Do you need to file taxes? Why?

Yes, because your unearned income is above the threshold of $1,300.

500

You earned $8,400 this year. How much more would you need to earn in order to be mandated to file taxes for this year?

$6,200 (threshold is $14,600)