Learning ObjectivesStudents will be able to:
| National Standards for Personal Financial Education Earning Income
|
Learning ObjectivesStudents will be able to:
| National Standards for Personal Financial Education Earning Income
|
RESEARCH: How much tax refund money went unclaimed by people who didn't file their taxes?
TRUE or FALSE: Only U.S. citizens can be claimed as a dependent for tax purposes.
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.
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?
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?
What is the amount of the self-employment tax (SECA) and how does it compare to FICA taxes?
Felix has a gross income of $18,000. What is his total tax due?
Sarina made $42,000 in the calendar year. How much does she owe in federal taxes?
All of the following people can be claimed as a dependent for tax purposes EXCEPT…
You are required to file a tax return in all of the following scenarios EXCEPT…
What is the purpose of the self-employment tax (SECA)?
A dependent is a qualifying child or relative who relies on you for financial support. To claim a dependent for tax credits or deductions, the dependent must meet specific requirements.
Answer questions to see if you can claim someone as a dependent on your tax return
See the full rules for dependents
These rules generally apply to all dependents:
A dependent must be a U.S. citizen, resident alien or national or a resident of Canada or Mexico
A person can't be claimed as a dependent on more than one tax return, with rare exceptions
A dependent can't claim a dependent on their own tax return
You can't claim your spouse as a dependent if you file jointly
A dependent must be a qualifying child or qualifying relative
To qualify as a dependent, a child must also pass these tests:
Relationship: Be your son, daughter, stepchild, eligible foster child, brother, sister, half-sister or -brother, stepbrother, stepsister, adopted child or the child of one of these
Age: Be under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled
Residency: Live with you for more than half the year, with some exceptions
Support: Get more than half their financial support from you
Joint return: Not file as married filing jointly unless only to claim a refund of taxes paid or withheld
See the full rules for a qualifying child
A qualifying relative must meet general rules for dependents and pass these tests:
Not a qualifying child: Isn't your qualifying child or the qualifying child of any other taxpayer
Member of household or relationship: Lives with you all year as a member of your household or is a specific type of relative
Gross income: Has gross income under $5,050
Support: Gets more than half their financial support from you
See the full rules for a qualifying relative
You can currently claim dependents only for certain tax credits and deductions. Each credit or deduction has its own requirements.
You can be claimed as a dependent and still need to file your own tax return. Your filing requirement depends on your income, marital status and other criteria. Find details on filing requirements for dependents.
See if you need to file: answer questions to find out
You may want to file anyway so you can get any federal income tax your employer withheld back as a refund or claim certain refundable tax credits.
Dependents, Standard Deduction, and Filing Information, Publication 501
Which of the following people is/are legally required to file a tax return?
Kennedy has a gross income of $105,000. What is her total tax due?
Alex and Tory are married and filing jointly. Their gross income is $150,000. How much do they owe in federal taxes?
When talking about taxes, it’s important to keep in mind the difference between marginal tax rate and effective tax rate.
Marginal tax rate: The highest tax bracket that your taxable income falls in.
Effective tax rate: The actual percentage of your taxable income that you end up paying in taxes.
Aiden has a gross income of $63,000 and takes the standard deduction. Their total taxes due are $5,435.
What is their taxable income?
What is their marginal tax rate?
What is their effective tax rate? Round to the nearest hundredth of a percent.
Liam has a gross income of $130,000 and takes the standard deduction.
What are his total taxes due?
What is his marginal tax rate?
What is his effective tax rate? Round to the nearest hundredth of a percent.
