Business and Personal Finance Taxes Unit

Why does the government need taxes?

For expenses and for your benefits like for social security and healthcare.

What two taxes will you NOT receive a refund for, even if you file a tax return?

Foreign and child tax

What item is always on your paystub?

Gross Pay

What is one example of "mandatory" spending? What is one example of "discretionary" spending?

Mandatory spending is social security and medicare. Discretionary spending is education and military.

identify two deductions you will see on your pay stub.

Medicare and social security

What are the top three categories the government spends our tax dollars on?

Military Health Care Social Security

What unearned income?

Money earned by interest, dividends, etc.

What is earned income?

Money earned from working for pay

Can a teen's earned income be reported on a parent's tax return?

Nope

What's an advantage to always filing a tax return, regardless of how much money you made?

You could get money from it

What is the benefit of filing a tax return even if you didn't meet the minimum income requirement?

You could make get more money from it

When do you receive w-4 form

You receive it whenever you start a job.

What do you need to file your 1040 or 1040 EZ form?

You w-2 and social security number

What will happen if you don't pay taxes?

Your credit score may be impacted

What does the w-2

it lets you know how much you earned last year, it lets you know what was withheld from your paycheck

What will happen if you owe taxes

pay by cash, delay the payment deadline, pay it installments

If you can't pay immediately, what is one course of action you can take? What are the criteria?

Apply for a payment plan

The more allowances you claim on your w-4

the more money you will see on your paycheck

What are ways to file taxes?

through a tax professional, mailing a paper tax return to the Federal government, tax software

What does your number of support for yourself have to be higher than?

50 percent

What is one benefit that you or someone you know receives as a result of government spending?

Clean water and clean air.

What types of taxes contribute to Federal tax revenue?

Corporate income tax, income tax, estate tax, excise tax

What is net pay?

Pay after deductions

What is gross pay

Pay before deductions

Who uses our taxes money?

State and federal government

The more allowances you claim on w-4...

The less money is withheld from your paycheck

The parent can still claim their child as a dependent if what?

The teen meets the dependency requirements

Are all wages, tips, and bonuses are taxable unless what

They are excluded

The w-4 does what

lets your employer know how much to withhold from you paycheck

How much you pay for taxes depends on what

level of income