Personal Finance - Federal Payroll Taxes

The amount of your paycheck after withholdings is known as your _________.

The four types of taxes that might be held out of your paycheck are:

Match the following federal forms with their purpose.

• tells your employer how much to hold out of your paycheck in Federal withholdings

• 1040

• reports all of your income, deductions, credits, and tax liability

• W-2

• reports all the wages earned by an employee in a year

• W-4

• proves you are eligible to work in the United States

• I-9

The W-4 form is completed by an individual when he or she first starts a new job. What does this form help to determine?

• The amount of money an individual should receive in income

• The amount of money that should be returned for paying too much in taxes.

• The amount of money that should be withheld in federal taxes.

• The amount of money that should be withheld in state taxes.

Whether or not you have to file a federal income tax return is based on your ______ and _____.

Citizens who are not required to file income taxes, may still file to ensure that they will receive a ​ (a)   if they paid too much in taxes throughout the year.

• refund
• penalty

Employers supply a ​ (a)   to help citizens file their tax return.

• W-2
• W-4

Tax returns can be filed either by mail or ​ (a)  

• online
• in person

The five different filing statuses are:

The ______is a specific dollar amount that reduces the amount of income on which you are taxed based on your filing status.

• itemized deduction

• refundable credit

• standard deduction

• nonrefundable credit