UNIT 8 REVIEW - Taxes

Front

Oliver, Henry, and Abigail work at BigTech Company and earn their income solely from their salaries. They are discussing their tax filing obligations during lunch break. Which of the following statements is TRUE regarding their tax filing obligations?

Back

They must file their tax returns by April 15th of the following year or request an extension by that date.

Front

When is Charlotte obligated to pay income tax?

Back

When her income exceeds the tax-free threshold.

Front

Which form will Grace need to fill out to decide the amount of money that will be deducted from her salary for federal and state income taxes? Options: W-3, W-4, I-10, 1040EZ

Back

W-4

Front

Carlos works part-time and earns $15/hour. He works around 60 hours every month. His withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (12%). What is his approximate net pay?

Back

$540

Front

Anika, a college student, is filing her 1040 tax form for the first time after getting a part-time job. What could be the consequences if she incorrectly fills out her form?

Back

Her eligibility for a tax refund or additional tax liability could be affected.

Front

In terms of taxation, who would be considered a "dependent"? Rohan is a full-time student under the age of 30 and Abigail is under the age of 19. James provides financial support to both of them.

Back

Abigail, because she is an individual under the age of 19 whom James provides financial support for.

Front

After finalizing your 1040 form, you find out that you owe the IRS $500. Each of the following is a potential method to pay the taxes you owe EXCEPT...
Send a check via mail to the IRS.
Utilize your debit or credit card online or through a phone call.
Establish an automatic transfer from your bank account if you e-file.

Back

Inform the IRS to deduct more taxes next year to compensate for the $500.

Front

Which of the following is a correct statement about the W-2 form?
A W-2 form includes details about your real estate investments,
You need a W-2 form from each of your employers to file your taxes,
A single W-2 form lists the total wages from all jobs you worked in the previous year,
The W-2 form lists all the cash you found on the street over the last year

Back

You need a W-2 form from each of your employers to file your taxes

Front

The amount the government needs to return to Mason after he paid more taxes than he owed is known as a __________.

Back

tax refund

Front

Which tax form contains details about income and tax withholdings for the year that Sophia needs to use to file her annual tax return? Options: W-4, W-9, W-2, 1099-MISC

Back

W-2