Unit 4 Taxes Review 2

Why should you complete a W-4 form any time you start a new job or change your tax status?  

• You need a copy of your W-4 to file your tax return annually 

• Your W-4 determines how much Federal income tax money your employer should withhold 

• Your W-4 determines your total tax bill at the end of the year 

• Completing a W-4 will guarantee you receive a large tax refund 

All of the following are factors that impact the amount someone may pay in taxes EXCEPT...  

• Income

• Political Party

• State

• Marital Status

Jay filed his taxes and found out he owes money. What is the most reasonable explanation as to why he owes money in taxes? 

• Not enough money was withheld from his paychecks.  

• Too much money was withheld from his paychecks. 

• When filing his taxes, Jay accidentally checked “Married filing jointly” instead of “Single”. 

• The IRS is asking Jay for a future advance on his possible taxes for next year. 

Jeremy just started a new job and completed his W-4 form. Who should he submit it to?  

• His Employer

• His Spouse

• The IRS

• No one- he keeps it for his records

An amount of money that can be directly deducted from the taxes you owe is a(n)...

• Tax Incentive

• Tax Credit

• Standard Deduction

• Itemized Deduction