learning taxes

Which is the shortest and simplest tax form?

1040EZ

Filing Status

A category on tax forms that is closely tied to marital status; categories are: single, married, head of household, and widower

W-4 Form

A form prepared by an employee for the employer to specify exemptions and determine the amount of taxes to be withheld from the employee's paycheck

W-2 Form

A tax from that an employer sends to employees after the end of the year to list income and amount paid in taxes

The deadline to file your tax forms is _____.

April 15

IRS

Internal Revenue Service; a government agency that is responsible for collecting taxes

Ann is in the middle of completing her first 1040EZ tax form. She has some questions about an instruction on the form. What should she do?

Since Ann is having a hard time completing her first 1040EZ tax form, she should ask questions by approaching a financial advisor or just generally reach out to anyone who's an expert at financial literacy; she could also read trustworthy websites that could help her understand more about the instruction on the form.

What would happen if you didn't file taxes?

The first time, the IRS would file for you and you'd owe more than you would have if you had filed yourself, plus penalties and interest.

withholding allowances

allowances an amount an individual enters on a W-4 form that helps an employer calculate the amount of income tax to subtract from an employee's paycheck

In one to two sentences, explain why citizens pay taxes.

citizens pay taxes so that the government can pay for public services, such as road maintenance, public libraries, schools, and police departments. If it wasn't for taxes, society would most likely be corrupted with no industrialization and therefore no improvements all over the world.

The purpose of a W-4 form is to _____.

let your employer know how much to take out of your paycheck for taxes

dependent

someone who depends on another individual for food, shelter, and other necessities, usually a child

tax return form

tax form that an individual completes to calculate how much is owed to or refunded by the IRS

The government uses the revenue from taxes to pay for goods and services for the community.

true, not false

Select the different types of taxes.

❌ voluntary ✔️income ✔️sales ✔️property ❌elective