Tax Returns
Why might it be beneficial to file a tax return even if you don’t meet the requirements to file?
You may receive some amount in a tax refund.
Are wages considered earned or unearned?
earned
Jessica is 24 years old and lives in her own apartment. She earned $48,000 from her salaried position last year.
Yes.
What is Hamza's net pay for this pay period?
$2,206.08
What are the three methods of filing?
Old fashioned paper
electronic software
personal tax expert
What is a tax refund?
Payment to taxpayers that paied more taxes than they owed.
Is sick leave considered earned or unearned income?
earned
Maria, who can be claimed as a dependent and earned $1,000 from her stocks this year.
No.
What is Jules's annual take home pay?
$38,160
Why might someone have to file state income taxes in more than one state?
residency in more than one state/ move in the middle of the year
employed in different states
The four requirements used to determine if you should file a tax return.
Age, dependency status, filing status, annual gross income.
Are real estate earnings earned or unearned income?
unearned
Tori is 20 years old, a junior in college, and lives with her parents. She has a graphic design side gig and her net earnings were $700.
Yes
What is Ted's take-home pay for this pay period?
$1,040
What two things do you need to file a tax return? (as a student)
Personal information and source of income.
What is the number one way to increase your tax refund?
Withhold more money when filling out your w-4
True or false, unearned income is untaxable?
False
What is the maximum amount of unearned income you can make before you NEED to file a tax return?
$1,500
What percentage of Isabella's pay is she withholding for 401(k) contributions?
10%
What are 2 examples of tax deductions you can claim to increase your refund?
Charity donations, home ownership, retirement, medical expenses, custody of family members.
What is the maximum amount of earned income you can make before you NEED to file a tax return?
$12,950
What is the difference between earned and unearned income?
Earned income is money made from working for someone or a business. Unearned income is income people receive even if they don't work for pay.
What is the maximum amount of "self employment" earnings you can make before you NEED to file a tax return?
$400
What is Marc's monthly net pay?
$2,376
What yields a bigger consequence? Failing to file a tax return or failing to pay back taxes you owe?
Failing to file a tax return. You will be charged 5% interest per month.