1st session

The W-4 form lets...

• the government know how much you paid in taxes last year

• your employer know how much to withhold from your paycheck

• the 3 major credit bureaus know how many dependents you have

• you know how much you paid in taxes last year

By claiming "exempt" on the W-4 form...

• You are paying all income taxes upfront at the START of the year.

• You are requesting an extension to file your taxes

• You will NOT have income taxes withheld from your paycheck.

• You are paying all income taxes at the END of the calendar year.

A form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors

• 1040

• 1040EZ

• 1099

• W-2

Any income (wages/salary) that is generated by working

• Earned Income

• Taxable Income

• Tips

• Dividends

A standardized dollar amount that reduces your taxable income, specifically for individuals who do not receive additional benefit by itemizing their deductions into medical expenses, donations, etc.

• Standard Deduction

• Withholding

• Exemption

A fixed amount all people are allowed to deduct from their adjusted gross income to reduce their tax liability

• Standard Deduction

• Itemized Deduction

Refers to if you are filing your taxes as single or married.

• filling option

• filing status

• options

• tax allowance

Who can claim the standard deduction?

• Everyone

• People Under 19

• Full-time students under 24

• 65 & older

Can you claim the standard deduction AND itemize deductions?

• Yes

• No