What is a tax allowance?

• A fine for filing your return late
• A slice of income you may earn before tax starts
• A loan the government gives every worker

Who is most likely to need to file a tax return?

• An employee with a second job plus freelance income
• An employee who never earned anything this year
• An employee with one job and tax already deducted

A pay rise that crosses a tax boundary can leave you with less money overall.

Circle one:   True   False

You worked in two places this year. What decides which return claims what?

• Where your friends filed their returns
• Where you officially lived and where the money was earned
• Which place has the shorter tax form

What is the difference between a deduction and a credit?

• Deductions raise your wage; credits raise your allowance
• They are two names for exactly the same thing
• Deductions lower taxable income; credits subtract from the tax owed

How do you avoid being taxed twice on the same pay?

• File both returns and credit tax paid in one place
• File only the return with the lower bill
• Hide the second income from both places

Why does filing matter beyond any refund you might get?

• Returns give the system data to charge each person correctly
• Filing raises the tax rates for everyone else
• Refunds are the only reason filing exists

Which filing habit saves a whole weekend next spring?

• Keeping all receipts loose in one drawer
• Guessing numbers from memory in April
• Filing each document weekly and reconciling monthly