Income & Taxes Study Guide

This set of flashcards covers definitions and important information related to income and taxes, based on the lecture notes provided.

What is the purpose of the 1040 Form?

To calculate taxes owed and file taxes with the IRS.

What does the W-4 Form determine?

The withholding amount from your payroll upon hiring.

What information does the W-2 provide?

How much you earned and how much you paid in taxes from each job.

What is the I-9 Form?

A form that proves your eligibility to work in the United States.

What is the minimum income requirement for a dependent under 65 and single to pay taxes?

If you earned more than $14,600.

What is considered unearned income for tax purposes?

Income that is not earned through work, with a threshold of more than $1,300 for dependents.

What amount must self-employed individuals earn to pay taxes?

More than $400.

What is 'withholding' in relation to your paycheck?

The amount taken out for taxes.

What is the due date for filing your federal tax return?

By April 15th of the following year.

What does it mean to owe taxes after completing the 1040 form?

You have to pay the IRS the designated amount.

What happens if Marquis doesn't file taxes?

He will miss out on a potential refund.

What factors should be considered when choosing between job offers?

Salary, benefits package, career opportunities, and location.

What is required to complete the I-9 Form?

Proof of identification.

When are you required to file a state tax return if you have worked in two states?

You may need to do so depending on where you earned income.

Which age groups qualify as dependents for tax purposes?

Children under 19 or full-time students under the age of 24.

Which statement is TRUE about dependents?

Dependents must have a taxpayer identification number.

Who receives a W-2 Form?

Every employee from each employer they worked for in the previous year.

When might you not have to file a tax return?

If your income is below the threshold for your filing status.

What are ways to pay taxes owed?

By check, debit or credit card, or auto transfer.