Taxes Basics

The W-4 form lets...

• the government know how much you paid in taxes last year

• your employer know how much to withhold from your paycheck

• the 3 major credit bureaus know how many dependents you have

• you know how much you paid in taxes last year

Jess is 21, in college, & has a job that provides 65% of her support. Is she a dependent?

• Yes

• No

By claiming "exempt" on the W-4 form...

• You are paying all income taxes upfront at the START of the year.

• You are requesting an extension to file your taxes

• You will NOT have income taxes withheld from your paycheck.

• You are paying all income taxes at the END of the calendar year.

Jason is 15 and earned $1450 at his job last summer. Should he file a tax return?

• No, because he didn't earn enough.

• No, because you have to be 16 and older to file taxes.

• Yes, because he may get a refund.

• Yes. You must file taxes even if you didn't earn enough.

What do you need to file your 1040 form?

• Your W-2

• Your W-4

• Your prior year's tax return

• Income of $50,000 or more

If a teen files a tax return, can the parent still claim him/her as a dependent?

• Yes. All teens are dependents until they are 18 years old

• No. If a teen files a tax return, he/she cannot be claimed

• Yes, as long as the teen meets the dependency requirements

• Yes, but the parent has to add the teen's income to theirs

In this tax structure you pay a greater percentage of the value of the tax base as that value increases. Our Federal Income Tax is paid in this manner.

• Progressive Tax

• Regressive Tax

• Proportional or Flat Tax

• Excise Tax

In this tax structure a single tax rate (percentage) is applied to all levels of income. Some states use this as structure for State Income tax, and our FICA taxes are collected in this way.

• Progressive Tax

• Regressive Tax

• Flat Tax

• Excise Tax

Deadline for employers to mail W-2s to their employees (either by paper or electronically).

• January 1st

• January 31st

• April 15th

• October 15th

Which is the term for money earned before tax deductions are taken out of your paycheck?

• Net Pay

• Gross Pay