10.3 #3 do they need to file taxes?

https://www.1040.com/assets/PDF/Dependents-TY21.pdf

Visit this resource. Who CAN be claimed as a dependent? Select all that apply.

• • 21 years old

  • Lives in Minnesota where he attends college full-time

  • Parents live in Wisconsin and pay for over 50% of his expenses

• • 20 years old

  • Lives in Maine with her parents and works full time

  • Parents don’t contribute anything to her expenses

• 50 years old

  Lives with parents

  Gross income is $3,000

  This person pays for half of house expenses

• 22 years old

  Lives with stepparent

  Attends college full time
  Parent pays for over 50% of expenses

1. https://www.1040.com/assets/PDF/Dependents-TY21.pdf

2. TRUE or FALSE: Only U.S. citizens can be claimed as a dependent for tax purposes.

• True

• False, citizens of Canada and Mexico can be claimed

• False, citizens of US and Canada can be claimed

• False, citizens of England can be claimed

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

6) Open the link to look at requirements for filing taxes. Which of the following people is/are legally required to file a tax return? Select all that apply.

• Person A, who can be claimed as a dependent and earned $850 last year but was not self-employed

• Person B, who can be claimed as a dependent and earned $14,200

• Person C, who cannot be claimed as a dependent and earned $1,500 last year but was not self-employed

• Person D, who cannot be claimed as a dependent and earned $15,000 last year

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

The resource mentions that if the IRS owes you a refund, you won’t be penalized if you file your tax return late. How long do you have to file a return to get a refund if you did not have to file taxes?

• 3 years

• 1 year

• 2 years

• 3 months

• 7 years

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

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?

• They could claim exemption if they don’t expect to earn more than the minimum income threshold to file a tax return.

• They won’t have to file a return and wait to get a refund.

• They could pay more taxes by claiming an exemption.

• They would be able to invest less by paying more taxes that the IRS says they owe.

4. https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

   https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

5. What is the amount of the self-employment tax (SECA) and how does it compare to FICA taxes? 

• Select 2.

• • 15.3%

• 4. self-employment tax (SECA) = FICA

• 4. self-employment tax (SECA) > FICA

• 7.5%

• 4. self-employment tax (SECA) < FICA

4. https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

   https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

5. What is the income threshold for self-employed workers to file a return?

• • $400

• 4. $13,850

• 4. $14,000

• $1,250

• 4. $15

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

Go to page 3.

Which of these is received without doing any work?

• Earned income

• Unearned income

• W-2 tax liability

• Active income

• Wages

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit
Organize these options into the right categories

Groups:

(a) Earned income

,

(b) Unearned income

,

(c) Earned or unearned: put in 401(k)

,

(d) Earned or unearned: alimony

• earned

• rental income

• tips

• salary

• unearned

• active

• wages

• passive

• dividends

• interest

https://www.hrblock.com/w-4-calculator/

If you are getting a new job after you graduate, you will need to fill out a W-4.

How do you figure out your tax withholding on a W-4? Use the calculator. Click Calculate my W-4. Click Single. Yes for head of household. 18. One. 40,000. Biweekly. 0. 0. No. None apply. No dependents. 0 for other credits. Yes for standard deduction. None apply.

What is the minimum you must withhold per pay period to get a refund of $5? Keep the hrblock window open.

• $28

• $10

• $200

• $300

• $32