NGPF Taxes

Three largest categories of federal government spending

Health, Military, Interest on Debt

W-2

A Form that determines how much money is withheld from your paycheck for federal, state income taxes.

Withholding

How much is being taken out of your paycheck in taxes.

Start Paying Taxes When....

you make more than the minimum income requirement

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 (this date) of the following year or request an extension.

April 15th

W-4

Form that determines how much money is withheld from your paycheck for federal and state income

401(k) contribution taxes

paycheck withholdings that puts money into a retirement investment fund that you manage

Ask yourself these questions to see if you NEED to file a federal tax return...

How much income did you earn this year?

What type of income did you earn this year?

You have a part-time job that pays $12/hour and you work about 50 hours every month. Your withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is you approximate net pay (what you take home)?

Approximate net pay will be $500

A paycheck will have (blank) withheld if the person claims a dependent.

Less money

I-9

A document that is submitted when you start a job to prove that you are eligible to work in the U.S. You must provide forms of identification when submitting it.

Used to file 1040 form...

W-2

Benefits of tax filing software

You can avoid the costs of having to pay a professional, though you may have to pay for the software and/or e-filing online.

Dependent

Someone under the age of 19 who you financially support

Ways to pay off the taxes you owe to the IRS

Write a check and mail it to the IRS.

Use your debit or credit card online or by phone.

Employees need a separate W-2 form from (blank) of their employers in order to file your taxes.

EACH

Refund

When you complete your 1040 form and you overpaid your taxes and the government owes you money.

If you live and work in one state and move to another state and work you will need to file a federal tax return and a state tax return for (blank) states you worked in.

BOTH

You will need to pay a (blank) self-employment tax if you earn $1,100 in a year and own your own business

15.3%

Essay Question: Identify two different forms of income that are taxable.

Choose these: Wages & Tips

Essay Question: What is the deadline to file your tax return?

April 15th of the following year

Essay Question: Give two reasons for why someone would go to a tax professional (rather than using tax filing software or using the paper forms) to file his/her tax return.

Their filing status may have changed & they may not have the time to do their own taxes.

Jill is 16 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 no, should she? Explain.

No, Jill is not legally required to file a tax return because she did not meet the minimum income requirement to file. However, she should file a tax return because she is likely to get a refund.