Understanding Income Tax Basics

Front

Which form is used to report an individual's annual income and calculate taxes owed to the government?

Back

Form 1040

Front

What is the purpose of Form W-2?

Back

To report wages and taxes withheld by an employer

Front

Which form should you fill out to determine the amount of federal income tax to withhold from your paycheck?

Back

Form W-4

Front

When might it be beneficial to itemize deductions on your tax return?

Back

When your itemized deductions are higher than the standard deduction

Front

What is the deadline for filing federal income tax returns in the United States?

Back

April 15

Front

Which form is used by independent contractors to report income?

Back

Form 1099

Front

What information is typically found on a Form W-2?

Back

Your wages, tips, and other compensation

Front

What does a Form W-4 allow an employee to do?

Back

Adjust their tax withholding

Front

If you have a simple tax situation, which form might you use to file your taxes?

Back

Form 1040EZ

Front

Which of the following is NOT a reason to itemize deductions?

• You have significant medical expenses
• You have large charitable contributions
• You have a high standard deduction
• You have mortgage interest payments

Back

You have a high standard deduction