Taxes and Your Paystub
Your take-home pay after deductions.
Net pay
- Sent by every employer you worked for by Jan 31
- Shows earnings and taxes paid
W-2
Only U.S. citizens can be claimed as a dependent for tax purposes. TRUE or FALSE
False, U.S. resident alien, or a resident of Canada or Mexico are included.
Two ways to file your income taxes
Paper filing, software (tax websites), and/or a Tax Professional
This is the amount taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement.
Withholding
Gross Pay
- completed for every job you work
-list information about yourself and your family.
- I determine how much money gets taken out of your payroll.
W-4
a qualifying child or relative who relies on you for financial support.
Dependent
Wages, tips, and other compensation and Federal and state taxes withheld from your earnings are all on
W-2
You start paying this when you make more than the minimum income requirement.
Income Taxes
A mandatory deduction to pay for Social Security and Medicare.
FICA
-Received in January
-received by a company if you were paid by them and not an employee
-Probably didn't get taxes withheld if you got me.
1099
A dependent can be a child that you provide at least 50% of the financial support for.
TRUE or FALSE
True
You should receive all W-2 forms from all your employers by this date
Jan 31st
1040 Form
A mandatory deduction to pay for national government programs.
Federal Income Tax
Last Day to submit income tax forms or to request and extension.
April 15th
What do you do if your tax situation changes while working a job?
Complete another W-4 with your employer
You may have to file taxes if you receive a certain amount of ______________through gifts, unemployment benefits, dividends, or inheritance.
Unearned Income
Can or Cannot be a Dependent?
David is a 21 year old who lives in Florida. He works full time at a Walmart. He lives with his parents, but they do not help him financially.
CANNOT BE a Dependent
Health insurance and 401 (k) are two examples of
Employer Contributions
Earned income for a previous job is completed on a W-4? True or False?
False
Can be or Cannot be Claimed as a Dependent:
Cam is a 20 year old full-time student athlete. He lives on school campus. His parents live out of state and they contribute to his financial needs.
Can be Claimed as a Dependent
If you overpaid your taxes throughout the year, you will likely receive a _______ when you submit your tax return.
Refund
How would Sara find out what the percentage of her federal taxes were withheld on her W-2 form for the year?
Divide her Federal Tax withheld amount by her total earnings and multiply by 100.