Tax Basics
What is a tax?
Money paid to the government.
What document do you fill out to file taxes?
A tax return
If you earn more money, do you usually pay more or less taxes?
What is a tax credit?
Money subtracted directly from taxes owed
Why is it important to save your tax documents?
For records and future tax filing
What form shows how much money you earned from a job?
W-2 form
During what month are taxes usually due in the United States?
April
What is a tax refund?
Money returned after overpaying taxes
Why do people keep receipts for taxes?
To prove deductions or expenses
What is direct deposit for a tax refund?
Money sent directly into a bank account
What are some things taxes help pay for?
Roads, schools, police, and government services.
What is a dependent?
Someone supported financially by another person
What is a tax deduction?
Something that lowers taxable income
What is FAFSA used for?
To apply for financial aid for college
What does “withholding” mean on a paycheck?
Money taken out for taxes before you get paid
What is income tax?
A tax on the money you earn
What form do freelancers usually receive instead of a W-2?
1099 form
What is taxable income?
Income that can be taxed
What type of account can help save for retirement and lower taxes?
A 401(k) or IRA
Why do employers ask workers to complete a W-4 form?
To determine how much tax to withhold from paychecks
What does IRS stand for?
Internal Revenue Service
What can happen if taxes are filed late?
Penalties or fines
Why do tax brackets exist?
Different parts of income are taxed at different rates
Why is it important to carefully check tax forms before filing?
To avoid mistakes, penalties, or delays.
Why is understanding taxes important for adults?
It helps manage money and avoid legal or financial problems