Taxes Terminology -A Review

Which tax form provides information on how much you have earned in interest on your savings tools, such as savings accounts?

• W2
• W4
• 1040
• 1099-INT

Who provides you with the 1099-INT?

• You fill it out
• Your employer
• Your Bank

When is tax day?

• January 1st
• April 1st
• April 15th
• December 31st

Which tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.

• W-4

• W-2

• I-9

• 1040

Why is it important to be extremely careful when completing your 1040 form?

• Mistakes on your 1040 form make you ineligible for employment during the next year

• Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward.

• The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government.

• Making even one mistake on your federal taxes can result in your being convicted of a crime.

Which is TRUE about earned income and unearned income? (hint: choose 2 correct answers)

• Earned is how much you make from a job

• Earned is any money you make in interest, dividends, etc.

• Unearned is any money you make in interest, dividends, etc

• Unearned is how much you make from a job

An amount of money set by the IRS that is not taxed

• itemized deductions

• taxable income

• standard deduction

• adjustable income

The amount of income on which a person's income tax is computed

• taxable income

• adjustable gross income

• gross pay

• take home pay

Interest received on a certificate of deposit (CD) is

• Taxable
• Tax-exempt

Interest income is considered

• earned income
• unearned income