1. Tax for Teens 1 Vocab/Definitions WS

2. 2 I’ve Got A Job! What’s an I-9 and a W-4?

3. Form I-9 – Employment Eligibility Verification  Proves you aren’t an illegal alien  Penalty if not one on file for each employee  Keep 3 years after employee is gone  Acceptable documents used to prove citizenship:  Passport  Voter’s registration  School or military ID  Driver’s license  Social security card 3

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5. So What Is A W-4?  New employees fill out this form  Tells employers how much federal income tax to withhold from paycheck 5

6. Filling Out the W-4 Correctly  If don’t fill out correctly:  Owe money when taxes are due April 15  Could be taking out too much tax from paycheck  Lose potential interest 6

7. A Few Key Terms You Need To Know  WITHHOLDING :  Represents money that an employer deducts from paycheck to pay all or part of employee’s taxes  However, depending how much make for the year, you may not have to pay federal income tax. If this is you, you would be EXEMPT from paying 7

8. Can you put Exempt on your W4?  You can put “Exempt” if: 1. Weren’t required to pay federal income tax last year 2. Don’t expect to this year either (made less than $6100 { std deduction - base amount of income that is not taxed }) 3. If under 19 or a full-time student (or until 24 yr/full time) 4. CAN parent(s) claim you as a dependent?  DEPENDENT : A person who relies on another taxpayer for at least half of his or her support (food, shelter, clothing, education, etc.)  If divorced  Custodial parent (has child 1 more day than other)  One makes more money 8 Mind map

9. Examples:  If you live with parents and under 19, you can be claimed as a dependent regardless of how much you make.  While your parents may not choose to claim you, test is whether they CAN.  If they can claim you and you are under 19, and expect to make under $6100 in the calendar year, you will likely NOT have to pay federal income tax.  Note: If you are at least 19 but under 24, parents can still claim you as a dependent as long as you are a FULL-TIME Student! 9 In-Class Am I Exempt WS Am I Exempt WS

10. I don’t qualify for Exempt status – now what?  Need to fill out the personal allowances worksheet on the W-4 form!  The more exemptions (allowances) you claim, the _____ tax withheld from paycheck  Claim “____” will result in the largest amount of tax to be withheld 10 TAX TABLE See pg 347-48 acct text Fill out W4 with workbook

11. What if I Make a Mistake? CClaim exempt and make more than $6100? MMore than likely have to owe taxes! IIf you don’t claim exempt (0 allowances) MMore than likely break even or receive a refund! 11 W4 ws