Midterm Review. Tax Basics and Forms.

Review of W-4

• W-4 is completed by YOU BEFORE you start your job

• Tells the employer how much tax to take out of your paycheck

• Only completed BEFORE you start working OR if you want to change how much taxes are taken out

W-4 Example

Multiple Choice

The W-4 form lets...

• the government know how much you paid in taxes last year

• your employer know how much to withhold from your paycheck

• the 3 major credit bureaus know how many dependents you have

• you know how much you paid in taxes last year

Multiple Choice

When is a W4 form filled out?

• Right before you file your taxes

• When you quit a job

• When you start a job

Review of W-2

• Completed by your employer by Jan 31st

• Lists totals of all taxes taken out of your paycheck from entire year (last January-December)

• can have multiple W-2's if you've had multiple jobs in a calendar year

W-2 Example

Multiple Choice

The form _______tells you how much was taken out of your pay for the year.

• W-2

• W-4

• 1040

• I-9

Multiple Choice

Who is responsible for providing the W2 form?

• You

• Your Employer

• Your bank

• The IRS

Multiple Choice

__________ is the deadline for employers to provide you with the W2.

• January 31st

• April 15th

• January 15th

• April 31st

Multiple Choice

Which tax form would an independent contractor use when reporting income?

• 1099

• W-2

• 2099

• None of the above

1040 Form

Tax form used for individuals to file federal tax returns

This form uses the information from your W-2's and 1099's (if applicable) to determine if the government owes you a refund OR if you didn't pay enough in taxes throughout the year and owe the IRS more money.

Multiple Choice

The deadline to file your annual tax return

• March 15

• April 30

• April 15

• March 30

I-9

• The Employer's (your boss) job to complete an I-9 form on you once you're hired

• used to verify your identity

• must present appropriate documents

• examples of documentation include: passport, driver license and social security number/birth certificate, (a longer list is on the IRS website)

Multiple Choice

Why do people fill out I-9 forms? 

• To prove they were born in the US

• To prove they can work in the US

• For their taxes

• To take out the right amount of money out of their taxes

Multiple Choice

What does the term "withholding" mean in reference to your paycheck?

• It is the amount of your paycheck that you are NOT being taxed on.

• It is how much is being taken out of your paycheck in taxes.

• It is how much you are going to owe the government when you file your annual tax return.

• It is how much you earn and includes salary, bonus, and commissions.

Multiple Choice

The government agency in charge of collecting tax.

• FICA

• IRS

• NBA

• SEC

Multiple Choice

Income tax is-

• Money your employer pays to you

• Money you earn and put into the bank

• Tax paid on the money you earn annually

Multiple Choice

Property Tax is-

• Tax on things you buy or purchase

• tax on the house, building or land you own

• tax take out of your paycheck

Multiple Choice

Sales Tax is-

• tax on retail goods you purchase at stores

• tax on the house you own

• tax taken out of your paycheck