Financial Literacy-Taxes

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What is Form 1040?

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The standard tax form used by individuals to file their annual income tax returns in the United States.

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What is a Progressive Tax?

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A tax system where higher-income households pay a higher percentage of their income in taxes compared to lower-income households.

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What happens to tax brackets when filing status changes from single to married?

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The same tax rates apply, but the tax brackets are larger so that more of your income is taxed at lower tax rates.

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What is a Federal Deficit?

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A situation where annual expenditures exceed tax revenue, leading to a shortfall.

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What are the different filing statuses?

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Single, Married Filing Jointly, Head of Household, and others.

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What is a W-2 form?

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A tax form that employers must send to their employees and the IRS, reporting annual wages and the amount of taxes withheld.

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What is a W-9 form?

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A form used to request the taxpayer identification number and certification, typically for independent contractors.

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What is a 1099 form?

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A tax form used to report various types of income other than wages, salaries, and tips.

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What is a Flat Tax?

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A tax system with a constant tax rate, regardless of income level.

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What is a Regressive Tax?

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A tax system where lower-income individuals pay a higher percentage of their income in taxes compared to higher-income individuals.