Consumer Finance Flashcards
Who primarily uses our tax money?
Federal and state government
The W-4 form lets
your employer know how much to withhold from your paycheck
What item would you definitely see on a paystub?
Gross-pay
By claiming “exempt” on the W-4 form
You are saying that you do NOT meet the minimum income requirements to file
All wages, tips, and bonuses are taxable unless specifically excluded
True
What do you need to file your 1040 form?
Your W-2
Earned income is any money you make from things like interest and dividends
False
Generally, the more education you receive, the higher your lifetime earnings will be
True
What is net pay?
Amount you take home after taxes/deductions are taken from your paycheck
What is the purpose of the W-4 form?
Informs employer the total amount of income tax withheld from paycheck
When you start a new job, you fill out the W-4 form to?
to determine amount of taxes employer should withold from your paycheck.
What form tells you how much you’ve made and how much you’ve paid in taxes in the last year?
W-2
What does the W-2 tell you?
How much you’ve earned and how much taxes youve paid in the last year
What is the gig economy?
a flexible market that allows you to work short-term, independent jobs
What is a 1040
A form people use to report income to the IRS, claim tax deductions and credits, and calculate their tax refund or tax bill for the year
