What Tax Document is This?
This is the document you fill out when you start a job, that tells your employer how much to withhold in taxes.
W4
Your total income before any deductions are taken out is called your "_______" pay.
Gross
What code section defines "ordinary and necessary" expenses?
Section 162a
True or False, a U.S. citizen is required to pay income taxes.
False
This type of retirement plan has contributions made with after-tax dollars and you do not pay tax upon distribution.
ROTH IRA
What type of document is used to report income from anyone who is not your employer?
1099
This is deducted from your paycheck but is not a tax.
401(k) contribution or health insurance
What 5 things need to be included on a meal receipt in order to make it tax deductible?
The federal tax code was 400 pages in 1913. In 2010, it was _____ pages (you need to be within 5,000 pages)?
70,000 pages
What is one of the best financial investments a W2 earner can make?
401(k) Contribution
What document is used to transfer income or loss from an LLC, S Corp, or partnership to your personal 1040?
K-1
As a W2 earner, name a deduction available to you to help decrease your taxable income.
Side-hustle. 401(k). HSA. Mortgage interest. Property Taxes. Charitable givings.
Which one of these could never be considered a business deduction and why: Cable TV, a Bible, Internet, your haircut for an business event, or flowers for a wedding.
Internet. Flowers if you are a florist.
Can I deduct the cost of my Louis Vuitton sweater I wear to business meetings?
You don’t… 3 part test. 1) Is it required or essential for work? 2) It's not suitable for personal or general use. 3) That its not worn for personal reasons.
What is the term defining the relationship between the cost of an investment and the profit it produces?
ROI - Return on Investment
This tax Schedule, in your 1040, accumulates all of your self-employment income, K-1s from entities and rental activity into one income/loss figure.
Schedule 1
If you are a minor and make over $14,600 in 2024, do you still need to file your taxes and why?
Yes, if you make over the standard deduction amount you need to file a tax return. Also, if you have withholdings, you may be entitled to a refund.
If Prime gave away a case of beer for free with every LLC set-up, could Tim deduct the cost of the beer?
Yes, promotional item proven in tax court with a service-station owner.
How many states do not have an income tax?
9 - Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming, New Hampshire
This is the term that defines the price at which Tommy would be willing to sell his Porsche, and I would be willing to buy it.
Fair Market Value
BONUS QUESTION ($50): What was the highest tax rate in U.S. history and what year was it enacted?
1944 - 94%