9.0 Unit 9: Vocabulary

Unit 9: Vocabulary

Open Ended

Why is it important for individuals to accurately file their annual income tax returns using the 1040 form?

Multiple Choice

Which form do employees use to claim exemptions that determine how much of their pay is withheld for taxes?

• W-2

• W-4

• 1040

• 1099

Open Ended

Explain how claiming a dependent on your tax return can affect your taxable income and the amount of taxes you owe.

Multiple Select

Select all that apply: Which of the following are funded by FICA taxes?

• Social Security

• Medicare

• Unemployment Insurance

• State Income Tax

Multiple Choice

What information can you find on a paycheck stub?

• Total earnings, deductions, net pay

• Only total earnings

• Only deductions

• Only net pay

Multiple Choice

Which of the following is NOT one of the five steps to pay payroll taxes?

• Calculate FICA tax

• Withhold the tax

• Deposit the tax

• Apply for a tax refund

Open Ended

What is the purpose of the standard deduction, and how does it differ for various filing statuses under the new law?

Multiple Choice

Which tax bracket applies to a single filer with an income of $50,000 in 2023?

• 10%

• 12%

• 22%

• 24%

Open Ended

Explain the difference between a tax bracket and a tax rate using examples from the images.

Open Ended

What information does an employee provide on a W-4 form, and how does it affect their paycheck?

Multiple Select

Which of the following are types of withholding tax?

• Dividend withholding tax

• Interest withholding tax

• Sales withholding tax

• Royalty withholding tax

Multiple Choice

Which of the following best describes the purpose of the 1099 form?

• To report non-employee compensation, such as payments to freelancers or contractors

• To file annual income tax returns for individuals

• To report business expenses for a company

• To apply for a tax refund

Multiple Choice

Which of the following is an example of a regressive tax?

• Sales tax

• Income tax

• Corporate tax

• Estate tax

Multiple Select

Which of the following are included in the formula for calculating taxable income for an individual?

• Gross Total Income

• Total Exemptions

• Total Deductions

• Cost of Goods Sold

Open Ended

How do you think the use of 1040 and 1099 forms affects the way individuals and freelancers manage their taxes?