Understanding Taxes

Front

Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
Social Security,
Medicare,
401(k) contribution

Back

401(k) contribution

Front

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT... How much income did you earn this year? What type of income did you earn this year? What state do you live in?

Back

What state do you live in?

Front

Which of the following describes what a "dependent" is for tax purposes? A child or adult that you support financially, Someone who is temporarily disabled, Someone who is a full-time student under the age of 30

Back

A child or adult that you support financially

Front

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a _________.

Back

refund

Front

Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true? Filing your taxes using a website is always free of charge, You are guaranteed a higher refund than if you were to use a paper form or hire a professional, You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online

Back

You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online

Front

If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?

Back

They will owe a payment to the IRS