Studied by 20 peopleWhat are the 3 largest categories of federal government spending?
Health, military, interest on debt
What does 'withholding' mean?
How much is being taken out of your paycheck in taxes
When do you start paying taxes?
When you mean the minimum filing requirements
When is tax day?
April 15th
What is a 1040 form?
Form used for filing your tax return
What is a W-4 form?
It is used by your employer to withhold the proper amount of federal income tax from your paycheck.
What is a 401K?
A retirement savings plan sponsored by an employer
What are some factors that determine whether you need to file a federal tax return?
How much you earned, how you earned money, if someone can claim you as a dependant
What is a dependant?
Someone under the age of 19 you financially support
What is an I-9 form?
Verifies employment eligibility status
What is the IRS?
Internal Revenue Service (collects taxes)
Does Illinois have state income tax?
Yes
What is net pay?
The amount of money you're paid after all taxes and deductions are taken out of your paycheck
What is gross pay?
The total amount of money you get before taxes or other deductions are subtracted from your salary
What are three ways of filing your taxes?
Mail-in paper filing, tax software, professional tax preparer
How can you pay your taxes?
Mailing in a check, online via bank account or credit/debit card
What is a W-2?
States the amount of money earned and taxes paid throughout the previous year
What is it called when you fill out the 1040 and you get money back from the government?
Refund
What is the standard deduction (amount you have to make in order to be required to file taxes) for 2021?
$12,550
What are different forms of income that are taxable?
Wages, salaries, tips, bonuses, unearned income, investment income
Why would someone go to a tax professional?
Complex filing situation, recently married or divorced, purchased a house, not comfortable filing their own taxes
What does the federal government spend your taxes on?
Public services, schools, highways, natural disaster relief, ect.
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