Types of Taxes
Does a progressive tax structure affect poor or rich people more?
What month do you get your W-2?
In January
Define estimated tax payments.
Quarterly payments made by self-employed persons
What is sales tax?
Taxes on items that you buy
Tax based on the value of your dwelling/land.
Property Tax
What is a W-4 used for?
Determines how much an employer will withhold from your taxes.
Define withholding.
How much they take out of your paycheck for taxes.
What two programs does payroll tax fund?
Social security and medicare
What percentage is sales tax in Montgomery County?
7.5%
What is a W-2?
Tells you how much you made at a job and how much was withheld in a year.
What is your tax liability?
How much you owe in taxes.
What is the name of Ohio's business privilege tax?
Name of tax on items deemed harmful or costly. Tax was created in hopes of reducing consumption.
Sin Tax
Name of the form individuals file annually.
Form 1040
What is an audit?
When the IRS fact checks your taxes to make sure you are telling the truth.
What are property taxes?
Taxes on things that you own (cars, boats, etc.)
Tax made on the sale of investments (stock/real estate).
Capital Gains
Schedule used to report income from a passthrough entity (e.g. S-Corp or Partnership). Used to prepare form 1040.
Schedule K-1
What is the difference between a tax credit and a tax deduction?
Tax deduction reduces your taxable income and tax credits reduce your tax liability
What is the property tax rate for vehicles in Ohio?
None. Ohio residents don't pay property taxes on their vehicles.