9.4 Teens and Taxes

Multiple Choice

1. How much tax refund money did 1.5 million Americans not receive because they did not file their taxes?

• $2 Billion dollars

• $0, because everyone files their taxes

• $1.5 Billion dollars

• $1 Billion Dollars

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Dependents | Internal Revenue Service

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Multiple Choice

1. TRUE or FALSE: Only U.S. citizens can be claimed as a dependent for tax purposes.

• True

• False

Open Ended

Create an imaginary profile for someone who CAN be claimed as a dependent and someone who CANNOT be claimed as a dependent. Be sure to include their age and at least TWO details that explain why they can or cannot be claimed as a dependent.

A. CAN be claimed:

B: CANNOT be claimed

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Multiple Choice

Tip: The first question requires information from this resource and the Updated Tax Figures resource.

1. Which of the following people is/are legally required to file a tax return? 

• Amanda, who can be claimed as a dependent and earned $850 last year

• Greg, who can be claimed as a dependent and earned $16,500 last year

• Jsaon who cannot be claimed as a dependent and earned $1,500 last year

• Erin, who cannot be claimed as a dependent and earned $15,200 last year

Open Ended

2. The resource mentions that if the IRS owes you a refund, you won’t be penalized if you file your tax return late. Why might you want to file your tax return on time anyway? 

Open Ended

3. When filling out a W-4 form, in what situation would a teen want to claim exemption from federal income taxes being withheld from their paycheck? What is the benefit of doing so? 

Open Ended

4. What is the amount of the self-employment tax (SECA) and how does it compare to FICA taxes? 

Multiple Choice

1. All of the following people can be claimed as a dependent for tax purposes EXCEPT…

• A 23 year-old college student whose parents pay all of their expenses

• A 17 year-old high school student with a part-time job whose parents pay for all of their expenses

• A 20 year-old college student with a paid internship who pays for all of their own expenses

• A 25 year-old cousin with no job who has lived in your parent/guardian’s house for the last year

Multiple Choice

2. You are required to file a tax return in all of the following scenarios EXCEPT…

• You made $25,000 working a full-time job

• You made $3,000 from investments in the stock market

• You were self-employed and made $2,500

• You made $9,000 working a part-time job

Multiple Choice

3. What is the purpose of the self-employment tax (SECA)?

• To tax self-employed individuals a greater amount than regular employees since they’re more likely to make health insurance claims

• To tax self-employed individuals a lesser amount than regular employees since they generally make less money

• To tax self-employed individuals an equivalent amount for Social Security and Medicare since FICA taxes taken out of their paycheck

• To tax self-employed individuals a flat amount since they don't pay federal or states income taxes