Taxes Unit ReviewFriday

This type of tax varies by the county that

you are in.

Sales Tax

This type of tax that you pay, is taken out of

your paycheck.

Income Tax

Why is it called income tax?

Because you are being taxed on your income, or the money, you are

making at your job, plus any other sources of

income.

The due date for your tax returns

is…?

April 15th

Why does an employer need

their employees to fill out a W-4 form?

So the employer knows how much tax to

withhold from the employee’s paycheck.

Are income taxes based on your gross

income or net income?

Gross income, which is before deductions

What is property tax?

A % of tax, which varies by location,

that you pay on the property you own.

This form will tell how much interest income a person

earned.

1099INT Form

INT= Interest

What is gross income?

Money earned BEFORE deductions

are made.

What tax is only charged on certain

goods?

Excise Tax

Give 2 examples of goods that use excise

tax.

-Gasoline-Cigarettes

Give 3 examples of what state taxes pay

for.

A few examples…- Fire/Police Protection

- Public Schools- Roads/Stop lights- State Government

-Public Works

When must your employer give you your W-2 form by?

(what date?)

Your employer must send you your W-2 Form by Jan 31st.

Who qualifies as a dependent?

- Your child whom you support more than 50%.

- Someone not related to

you, but who lives with you and you support more than

50%.

What is a W-2G Form?

- It is for Gambling Winnings.

- It comes filled out from the casino.

-You must also attach this to your tax return forms when you send them in.

What does your W-2 form report

on?

Your W-2 reports on how much you

earned at your job and how much tax

was withheld.

If you work 2 different jobs, how many W-2 Forms should your receive by Jan 31st?

Two.

You should receive a W-2 from each of your employers.

Can a dependent be taken as a tax deduction for those supporting the

dependent?

Yes! If you have 1 or more

dependents, they can be taken as a tax deduction.

What does exempt from withholding

mean?

You do not need to have tax withheld from your

paycheck.

In most cases, it is because you make under a certain amount of money.

True or False:If you are audited for your taxes and have committed tax fraud,

you might need to pay that amount plus a penalty, and you

could end up having to serve time in jail.

TRUE!!

-Do NOT lie on your taxes.

-Remember, when you sign at the bottom of the form, you are agreeing

that all above information is true.

What is the time frame that Income taxes, W-2’s and

1099’s are based off of?

- The calendar year.

- From Jan. 1st – Dec. 31st

Where can you get your tax forms from

that you need to fill out and send in?

(There are at least 3 places)

- On-line- The library

- The post office

What is a 1099DIV Form?

- It is from the Dividends you earn from stocks.

- The Brokerage house or bank

sends this form to you, all filled out.

- It tells what was earned and what was withheld federally.

What does the IRS stand for?

Internal Revenue Service

True or False:A copy of your W-2

must be sent in with your tax return forms?

TRUE!!!

True or False:

If you live in Illinois and owe income taxes, you

need to file a Federal and Illinois income tax form.

True!!!

To use the 1040EZ form, your income must be less than

$_______ per year.

Your income is under $100,000.

Does EVERYONE need to file a tax

return?

No.

What is the difference between a 1040EZ and

a 1040A regarding dependents?

On a 1040EZ you cannot claim any

dependents.

What are income taxes based on?

All income you have coming in.

-Job, Interest, Stock Dividends, Gambling

winnings, etc.

What is the money you get back from

the IRS called?

Your refund.

What is the difference

between a 1040-A and a IL-1040 ?

The 1040-A is a Federal income tax

form and a IL-1040 is only for IL income tax.

Should your social security number be

written on your actual tax return form?

Yes!You need to be

identified by the government.

If you earn tips at your job, do you need to

include that money into your total income on your

tax return forms?

Yes!!

You may get audited from the IRS and you need to

have records of how much you earned in tips.

To get your refund, what must you do?

File a tax return.

True or False:

Even though taxes may have a negative association to them and seem “boring” to learn about in class, they are there

for a reason and provide us with wonderful resources, such as schools

fire and police protection and a government.

True!

True!!

Thanks for hangin’ in there!!

You all did great!!!