Financial Math: Federal Income Tax

Match the following federal forms with their purpose.

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

• 1040

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

• W-2

• proves you are eligible to work in the United States

• W-4

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

• 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.

Tags

CCSS.7.RP.A.3

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

Tags

CCSS.8.EE.C.7B

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

Tags

CCSS.HSA.CED.A.3

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

Tags

CCSS.7.RP.A.3

Instead of using a standard deduction, you may opt to base your deduction amount directly on your actual spending on specific allowed expenses. This is known as using________.

• itemized deductions

• refundable credits

• specific deductions

• nonrefundable credits

​ ​ (a)   reduce your taxable income, which in turn reduces your overall tax liability.

• Deductions
• Withholdings
• Credits

Tags

CCSS.7.EE.A.1

​ ​ ​ (a)   reduce your actual amount of tax.

• Credits
• Withholdings
• Deductions

Tags

CCSS.7.EE.A.1

​ ​ ​ Taxes paid by deductions from your paycheck are known as​ (a)  

• withholdings
• deductions
• credits

Tags

CCSS.7.RP.A.3