Personal Finance and Taxes Review

Open Ended

Why is understanding income and taxes significant for personal financial management?

Multiple Choice

Which of the following is a tax deducted from an individual's paycheck for Social Security and Medicare?

• Income Tax

• Payroll Tax

• Property Tax

• Sales Tax

Multiple Choice

Which filing status has the highest income threshold for the 37% federal tax rate in 2018?

• Single

• Married, filing jointly

• Married, filing separately

• Head of household

Open Ended

Explain how the information provided on Form W-4 affects the amount of money deducted from an employee's paycheck.

Multiple Select

Which of the following documents can be used to verify an employee's eligibility for employment on Form I-9? Select all that apply.

• US passport

• Driver's license

• Permanent resident card

• Employment authorization document

Multiple Select

Which of the following are considered payroll deductions? Select all that apply.

• Federal Income Tax

• Health Insurance

• 401(k) contribution

• Sales Tax

Match

Match the following

• your gross income after calculating certain adjustments or reductions to income

• your adjusted gross income less any allowable tax deductions or exemptions

• an expense you can subtract from your adjusted gross income

• the amount of money set by the IRS which is not taxed

• a specific expense, such as medical, that you can deduct from your adjusted gross income

adjusted gross income

taxable income

tax deduction

standard deduction

itemized deduction

• adjusted gross income

• taxable income

• tax deduction

• standard deduction

• itemized deduction

Open Ended

Compare and contrast gross income and taxable income. How do adjustments affect taxable income?

Match

Match the following

• Gross Pay

• Net Pay

• Pay Period

• Deductions

The amount of money that you are paid before taxes are taken out.

The amount of money from your paycheck that you actually take home.

The amount of money you are paid for working a certain amount of time.

The amount of money taken out of your paycheck for things like taxes and insurance.

• The amount of money that you are paid before taxes are taken out.

• The amount of money from your paycheck that you actually take home.

• The amount of money you are paid for working a certain amount of time.

• The amount of money taken out of your paycheck for things like taxes and insurance.

Multiple Choice

Which federal tax is used to fund Social Security and Medicare programs?

• Federal Insurance Contributions Act (FICA)

• State Income Tax

• 401(k)

• Sales Tax

Multiple Select

Which of the following are included as examples of income reported on Form 1099-MISC?

• Rent

• Prizes and awards

• Medical and health care payments

• Salary from an employer

Match

Match the following Tax Forms

• • I am received in January

  • There is one of me for every job you work

  • You can tell how much you earned and how much you paid in taxes by reading me

• • I am completed every April

  • Form used to File your taxes

• • I am received whenever you start a job

  • You list information about yourself and your family on me

  • I determine how much money gets taken out of each paycheck

• • I am received whenever you start a job

  • You use me to prove that you are eligible to work in the U.S.

  • You must provide forms of identification when submitting me

  • Used in Identify Verification

• • I am received in January

  • You get me if you are not an employee but were paid by a company

  • You can also get me for other types of income, such as gains and losses in brokerage accounts, dividend and interest payments, and more

  • You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up

W-2

1040

W-4

I-9

1099

• W-2

• 1040

• W-4

• I-9

• 1099

Open Ended

List three important steps to consider before e-filing a tax return.

Multiple Choice

Which of the following taxes is deducted directly from an individual's paycheck?

• Income Tax

• Property Tax

• Sales Tax

• Payroll Tax

Open Ended

Reflecting on what you've learned about personal financial management and tax deductions, what questions do you still have or what would you like to know more about regarding how taxes affect your paycheck?