Fin Lit (Taxes)

In the United States, taxes are collected by the:

• IRS

• FBI

• Supreme Court

• President of the US

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns.

• W-2

• W-4

• 1040

• 1099-INT

A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck.

• W-2

• W-4

• 1040

• 1099-INT

Form that an employer must send to an employee (usually in January) and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck

• W-2

• W-4

• 1040

• 1099-INT

Withholding

• The portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state and local taxes

• A government-run insurance program that provides healthcare assistance to elderly and disabled Americans

• A range of income amounts that are taxed at a particular rate

• The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay

When it comes to taking taxes out of a person's paycheck, the saying is...

• Everyone pays the same amount, no matter how rich or poor.

• The more you make, the more they take.

• All for one and one for all!

• Everyone pays half their paycheck

Stewie had his employer withhold the maximum amount of taxes per paycheck, so Stewie likely overpaid the government for taxes this year, meaning he will _______.

• get a refund

• owe the government

• hire an accountant

• go to prison for tax evasion

What is the standard deduction for a single taxpayer with no dependents?

• 12,550

• 24,800

• 18,650

• 5,000

Which of the following criteria describe a "dependent?"

• Is under 19, or under age 24 and a full-time student, or permanently disabled at any age

• Lives with you more than 50% of the year

• Doesn’t provide more than half of his or her own financial support

• all of the above

A W-2 will be sent to Lily by the end of January. She will use this form to...

• obtain employment

• receive her paycheck

• file her taxes

• begin her retirement savings account