Consumer Economics Final Exam Study Guide - Taxes

Taxes:

Beth is single. She makes $35,000 a year and has $23 in interest from her savings account. What forms will she need in order to properly file her taxes this year?

(You may select more than one)

• 1099 Int

• W-2

• W-4

• 1040

Taxes:

Tom is married to Sue. Their W-2 forms together stated an income of $85,000 and their savings accounts have indicated an amount of $30 of interest. They have no stock dividends; they rent a house and did not contribute to an IRA last year. They have no children or other dependents. What is the name of the form they will use to complete their taxes?

• 1099 Int

• W-2

• W-4

• 1040

Jim is starting a new job. His employer needs to know how much to withhold from his paycheck. Jim needs to fill out the correct form. Which form is this?

• 1099 Int

• W-2

• W-4

• 1040

Casey needs to file her taxes. What tax form should Casey look for that would show her earnings from the previous year and how much she paid in taxes?

• 1099 INT

• W-2

• W-4

• 1040

Social Security and Medicare taxes are also known as

• Income Taxes

• Union Tax

• FICA Taxes

• SSI Taxes

What type of tax system is shown in this chart?

• Regressive

• Progressive

• Proportional

Which of the following would help solve the Social Security funding problem?

• Raise the retirement age

• Increase the benefits Social Security offers

• Lower the age to qualify for Social Security

• Lower the Social Security Tax

What is your tax liability if you are single and earn $21,455?

• $2,363

• $2,375

• $2,387

• $2,345

The federal government spends its tax revenue on all of the following except

• Defense Spending

• Funding Police and Fire Department

• Social Security

• Medicare

What is the purpose of the W-2 Tax Form

• The form employers must send that shows annual wages and the amount of taxes withheld from your paycheck.

• The form you must fill out to report income you earned on interest

• The form you must complete that shows the percentage of income you must pay into Social Security

• The form you must fill when you get a new job telling how many deductions you want taken out of your pay