Explain who qualifies to be claimed as a dependent for tax purposes
Determine whether or not a person is required to file taxes
National Standards for Personal Financial Education
Earning Income
8a: Explain the difference between earned and unearned income
11a: Evaluate the benefits and costs of gig employment, such as driving for a cab or delivery service
Student Activity Packet
Analyze: Should They File a Tax Return?
Learning Objectives
Students will be able to:
Identify key facts about taxes and the tax cycle
Explain who qualifies to be claimed as a dependent for tax purposes
Determine whether or not a person is required to file taxes
National Standards for Personal Financial Education
Earning Income
8a: Explain the difference between earned and unearned income
11a: Evaluate the benefits and costs of gig employment, such as driving for a cab or delivery service
QUESTION OF THE DAY:How much tax refund money went unclaimed by 1.5 million Americans who didn’t file their taxes?
5 min
Answer the question on the first slide in the space below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions on the last slide.
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Question 1
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REFERENCE: Dependents
Whether or not you’re a dependent can impact your tax situation and the people who might claim you as a dependent. Review the reference to learn about who qualifies as a dependent. Then, answer the question.
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REFERENCE: Do I Need to File a Tax Return?
8 min
As a teen, filing a tax return can be a mostly straight-forward process. However, you may be wondering how that process changes if someone claims you as a dependent or if you are a self-employed worker or household employee. Read through this reference to learn more about what to do in these scenarios. Then, answer the questions.
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Question 29
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Question 30
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Question 31
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How much tax refund money went unclaimed by 1.5 million Americans who didn’t file their taxes?$_______ Dollars
Question 2
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Question 3
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Create an imaginary profile for someone who CAN be claimed as a dependent and someone who CANNOT be claimed as a dependent. Be sure to include their age and at least TWO details that explain why they can or cannot be claimed as a dependent.
Can Be Claimed:
_______ _______ _______
Cannot be Claimed:
_______ _______ _______
Question 4
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Question 5
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The resource mentions that if the IRS owes you a refund, you won’t be penalized if you file your tax return late. Why might you want to file your tax return on time anyway?
Question 6
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When filling out a W-4 form, in what situation would a teen want to claim exemption from federal income taxes being withheld from their paycheck? _______What is the benefit of doing so?_______
Question 7
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What is the amount of the self-employment tax (SECA)_______ and how does it compare to FICA taxes?_______
Question 8
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Question 9
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Is this person legally required to file a tax return? _______
Why or why not?_______
Question 10
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If no, should they file a tax return? Explain your reasoning._______
Question 11
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Question 12
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Is this person legally required to file a tax return?_______
Why or why not?_______
Question 13
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If no, should they file a tax return? Explain your reasoning._______
Question 14
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Question 15
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Is this person legally required to file a tax return?_______
Why or why not?_______
Question 16
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If no, should they file a tax return? Explain your reasoning._______
Question 17
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Question 18
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_______
Why or why not?_______
Question 19
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If no, should they file a tax return? Explain your reasoning._______
Question 20
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Question 21
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Is this person legally required to file a tax return?_______
Why or why not?_______
Question 22
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If no, should they file a tax return? Explain your reasoning._______
Question 23
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Question 24
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Is this person legally required to file a tax return?_______
Why or why not?_______
Question 25
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If no, should they file a tax return? Explain your reasoning._______
Question 26
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Question 27
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Is this person legally required to file a tax return?_______
Why or why not?_______
Question 28
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If no, should they file a tax return? Explain your reasoning._______
All of the following people can be claimed as a dependent for tax purposes EXCEPT…
A 23 year-old college student whose parents pay all of their expenses
A 17 year-old high school student with a part-time job whose parents pay for all of their expenses
A 20 year-old college student with a paid internship who pays for all of their own expenses
A 25 year-old cousin with no job who has lived in your parent/guardian’s house for the last year
You are required to file a tax return in all of the following scenarios EXCEPT…
You made $25,000 working a full-time job
You made $3,000 from investments in the stock market
You were self-employed and made $2,500
You made $9,000 working a part-time job
What is the purpose of the self-employment tax (SECA)?
To tax self-employed individuals a greater amount than regular employees since they’re more likely to make health insurance claims
To tax self-employed individuals a lesser amount than regular employees since they generally make less money
To tax self-employed individuals an equivalent amount for Social Security and Medicare since FICA taxes aren’t taken out of their paycheck
To tax self-employed individuals a flat amount since they don’t pay federal or state income taxes
Only U.S. citizens can be claimed as a dependent for tax purposes.
True
False
Tip: The first question requires information from this resource and the Updated Tax Figures resource.
Which of the following people is/are legally required to file a tax return?
Jason, who cannot be claimed as a dependent and earned $1,500 last year
Amanda, who can be claimed as a dependent and earned $850 last year
Greg, who can be claimed as a dependent and earned $16,500 last year
Erin, who cannot be claimed as a dependent and earned $15,200 last year
