Filing Income Taxes Flashcards
What is the IRS and what does it do?
Internal Revenue Service. Collects your taxes and enforce tax law
What is a Form 1040?
Federal Individual income tax return.
Due April 15 for the previous year’s income.
What is a Form TC-40?
Utah State Individual Income Tax Return
What is a W-2?
If you earn wages from an employer, you will receive this. It shows the money you earned and taxes withheld for a calendar year.
What is a tax deduction?
An amount of money used to reduce your taxable income (example: retirement account contributions).
What is taxable income?
The amount of your income which is taxable, after deductions.
Not every dollar you make is taxable!
What is a tax credit?
An amount of money that reduces your taxes owed, dollar-for-dollar (example: child tax credit).
Who qualifies as a dependent on a tax return?
- Under age 18 (or age 24 if full time student)
- Did not provide more than half of own support
- Lived with parents more than half the year
True/False: Every person who earns income has to file a tax return.
False. If you make less than a certain amount you won’t owe any taxes.
True/False: a traditional 401(k) is a POST-TAX deduction.
**False. Traditional 401(k) are pre-tax deductions, and ROTH 401(k) are post-tax deductions.
