Taxes - Unit Test

When you turn 18

When you get a full-time job (part-time does not count)

When you make more than the minimum income requirement

When you are notified by the IRS that you are required to pay federal income taxes

Making a mistake will disqualify you from receiving future refunds

The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government

Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward

Mistakes on your 1040 form make you ineligible for employment during the next year

Social Security

Medicare

401(k) contribution

Federal income taxes

How much income did you earn this year?

What type of income did you earn this year?

What state do you live in?

Are you claimed as a dependent on anyone else's tax return?

Determine how much tax to withhold from her paychecks based on W-4 information

Complete a W-4 form

Send withholding amounts to the federal government

Complete a W-2 form

I-9

1099

1040

W-4

Avia Consulting will use this W-2 to file their 1040 form

Lily earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages

Lily paid state income taxes of $1,189.90

Lily works in the same city that Avia Consulting is based in

withholding

direct deposit

deduction

refund

$335.10

$400.00

$2,680.80

$3,200

$5.80

$24.80

$44.50

$52.20

Filing your taxes using a website is always free of charge

You are guaranteed a higher refund than if you were to use a paper form or hire a professional

If you owe money to the IRS, you receive a discount if you e-file use a tax filing website

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

A child or adult that you support financially

Someone who is temporarily disabled

An adult who financially supports you

Someone who is a full-time student under the age of 30

They will receive a refund

They will owe a payment to the IRS

They will be audited

They will be charged with tax evasion

A W-2 lists all the money you earned in cash over the last year

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form

You need a separate W-2 form from EACH of your employers in order to file your taxes

The W-2 includes information about the interest you earned from your investments

Janet, who earned $28,200 but was paid entirely in cash

Max, whose total income from three separate part-time jobs was $9,500

Isaiah, who owns his own business and generated an income of $7,000

Dani, who is a cafe barista and earned $16,000 in wages and $1,250 in tips