NGPF Personal Finance Semester Course 8: Taxes

Mandatory government spending includes what?

social security and medicare

What does the term withholding mean in reference to your paycheck?

how much is being taken out of your paycheck in taxes

When do you start paying income taxes?

when you make more than the minimum income requirement (12950)

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

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

You must file your Tax return by the deadline (typically April 15 of the following year or request an extension by that date)

True

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?

W-4

What type of paycheck withholdings puts money into a retirement fund that you will manage?

401-K

When determining whether you NEED to file a tax return, each of these questions matter EXCEPT...

what state do you live in

Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?

500

Elaine just accepted a new job and is working with the company's HR department to fill out paperwork. Which of the following steps is she responsible for?

complete W-4

What is the name of the tax form that requires you to provide identification and prove you are eligible to work in the U.S.?

I-9

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.

refund

You can avoid the cost of having to pay a professional, though you might have to pay for e-filing online.

True

Jessica is 16 years old and earned $1,100 through her photography side gig. Her parents can claim her as a dependent on their tax return. All of the following statements are true EXCEPT...

Jessica should receive a W-2 in January

What characteristics describe what a "dependent" is for tax purposes?

under 19, under 24 in college, in need of financial support

If a tax payer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?

owe money

You need to separate W-2 from EACH of your employers in order to file your taxes.

True

Akshay worked at a cafe while he was a college senior in Boston, Massachusetts. After graduating in June, he moved back to his home in California and started a full-time job in September. Will he have to file a state income tax return for both Massachusetts and California?

yes

All of the following people would be required to file a tax return EXCEPT...

Max, whose income from three separate part-time jobs was 9,500

Marquis is starting a fast food job during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. He earns $2000. Based on how he completed his W-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April?

he won't receive his 200 dollars

What is the deadline to file your tax return, and what can you do if you know you will miss that deadline?

April 15/Get an extension

Jill is sixteen years old and worked at her local grocery store over the summer earning 5,600. Is Jill legally required to file a tax return? If not, should she file anyway? Explain.

No, but she should file a tax return anyway

List two things the federal government spends your tax dollars on the you benefit from.

education/highways