Taxes Unit Recap

Taxes Review

Multiple Choice

Which of the following are the three largest categories of federal government spending?

• Infrastructure, Defense, and Science

• Health, Military, and Interest on Debt

• Veterans, Infrastructure, and Education

• Education, Defense, and Food/Agriculture

Multiple Choice

What does the term "withholding" mean in reference to your paycheck?

• It is the amount of your paycheck that you are NOT being taxed on.

• It is how much is being taken out of your paycheck in taxes.

• It is how much you are going to owe the government when you file your annual tax return.

• It is how much you earn and includes salary, bonus and commissions.

Multiple Choice

When do you start paying taxes?

• When you turn 18

• When you make more than the minimum income requirement

• When you get a full-time job (part-time dose not count)

• When you are notified by the IRS that you are required to pay federal income taxes

Multiple Choice

Why is it important to be extremely careful when completing your 1040 form?

• Making even mone mistake on your federal taxes can result in your being convicted of a crime

• The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government.

• Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward.

• Mistakes on your 1040 from make you ineligible for employment during the next year

Multiple Choice

Which of the statements below is TRUE about filing your taxes, assuming only income comes from the salary you earn at BigTech Company?

• You need to file your tax return by the end of the calendar year ( typically December 31st)

• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

• You must file your tax return by April 15th of the following year or request an extension by that date.

• You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money.

Multiple Choice

What form am I? I am received when you start a job. You use me to prove that you are eligible to work in the U.S., and you must provide forms of identification when submitting me.

• I-9

• 1099

• 1040

• W-4

Multiple Choice

Your friend Lailia is talking to you about the benifits of tax filing software. Which of the following is true?

• The Software comes with free access to professionals who can help you if you have a question.

• You can avoid the cost of having to pay a professional, though you may have to pay for the software and/or e-filing online.

• You are guaranteed a higher refund than if you were to use a paper form or hire a professional.

• You are 50% less likely to make a mistake when e-filing your taxes than if you were to file them using paper forms.

Multiple Choice

Which of the following describe what a "dependent" is for tax purposes?

• Someone under the age of 19 who you financially support

• Someone who is temporarily disabled

• Someone who financially supports you

• Someone who is a full-time student under the age of 30.

Multiple Choice

Upon completing your 1040, you realize that you owe the $427. Each of the following is a possible way to pay the taxes you owe EXCEPT...

• Write a check and mail it to the IRS.

• Tell the IRS to take out more taxes next year to pay back the $427.

• Use your debit or credit card online or by phone.

• Set up an auto-transfer from your bank account if you e-file.

Multiple Choice

Elaine is an employee. Which of the following steps is she responsible for?

• Determine how much tax to withhold based on W-4 information

• Complete a W-4

• Send withholding amounts to the federal government

• Request a W-2 annually

Multiple Choice

Which of the following statements about the W-2 form is TRUE?

• A W-2 lists all the money you earned in cash over the last year

• The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-@ form

• You need a separate W-2 form from each of your employers in order to file your taxes.

• The W-2 includes information about the interest you earned from your investments.

Multiple Choice

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

• withholding

• direct deposit

• deduction

• refund

Multiple Choice

What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.

• 1040

• I-9

• W-2

• W-4

Multiple Choice

Out of the following group, who does NOT have to file a tax return?

• Janet, who earned $28,200 but was paid entirely in cash.

• Max, whose total income from three separate part-time jobs was $9,500.

• Isaiah, who owns his own business and generate an income of $7,000.

• Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips.

Multiple Choice

You will need to pay a 15.3% self-employment tax if you earn $750 in a year...

• Babysitting your cousin's kids

• Screen printing and selling custom made t-shirts

• Working at the local ice cream store

• Delivering the morning newspaper

Multiple Choice

Marquis is staring a fast food job during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. He earns $2000. Based on how he completed his w-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April.

• The IRS will refund his $200 directly to him.

• the IRS will refund his $200 to his parents.

• The IRS will fine Marquis $75 or more for not filing taxes.

• Nothing will happen, but Marquis will miss out on his potential refund.