Tax Terms
The form your employer gives you showing how much you earned and how much tax was withheld.
W-2
When you pay too much tax through withholding and the government returns money to you, that payment is called this.
What is one reason why you should file your taxes?
1. May get money returned
2. Continue to fund programs everyone benefits from
3. Avoid paying penalties in the future
The category you choose when filing taxes that affects your standard deduction and tax rates (examples include single and head of household).
Filing Status (single, married filing jointly, married filing separately, head of household, qualifying widow(er)).
The portion of your income that is actually taxed after subtracting deductions is called this.
Taxable Income.
The main federal form individuals use to report income and calculate tax due or refund.
1040 Form
A fast, secure way to receive a tax refund directly to your bank account is called this.
Direct Deposit
In most places how often are tax returns filed?
Once a year
The total amount of tax you owe to the government is called this.
Liability
Name an app you can use to send money to a friend using your phone
Venmo, Zelle, Cash app, etc...
The form you complete when starting a regular job to tell your employer how much tax to withhold.
W-4
Money taken out of paychecks to fund Social Security and Medicare is known as this.
Payroll Tax
What is this year's deadline for filing taxes?
April 15th
True or False: A taxpayer's spouse can be claimed as a dependent
False. Only a child, stepchild, brother, sister, or parent.
Fill in the blank: Maria has $300 in her account. She spends $340 on a jacket using her credit card. She is now in ________.
Debt
The form typically filled out by independent contractors or freelancers to provide their taxpayer identification.
W-9
Money you earn from wages, salaries, tips, or self-employment is called this.
Earned Income
What is the name of the government bureau that is responsible for processing your tax returns
The IRS
If you support a qualifying relative or child and claim them on your tax return, that person is called this.
Dependent
Money your employer takes out of your paycheck for taxes and sends to the government. It's like paying your taxes a little at a time.
Withholding
Name one online tax software
TurboTax
The fixed dollar amount based on filing status that reduces the portion of income subject to tax (for many filers used instead of itemizing).
Standard Deduction
If you are a minor and make less than $14,600, do you have to file?
No, but if you've been working a job and taxes have been taken out, it may be worth it to file
Roads are privately funded, true or false.
False. Roads are funded primarly with State and Federal taxes.
What does ATM stand for?
Automated Teller Machine