1040, Compensation & Taxes

Juanita has a part-time job that pays $12/hour and she works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?

• $700

• $500

• $120

• $600

Why should you accurately complete a W-4 form any time you start a new job or change your tax status?

• Your W-4 determines your total tax bill at the end of the year.

• Completing a W-4 will guarantee you receive a large tax refund.

• Your W-4 determines how much Federal income tax money your employer should withhold

• You need a copy of your W-4 to file your tax return annually.

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

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

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

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

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

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...

• Are you claimed as a dependent on anyone else's tax return?

• What type of income did you earn this year?

• How much income did you earn this year?

• What state do you live in?

All of the following are ways to pay any taxes you owe EXCEPT...

• Using your debit or credit card to make an online payment

• Use an app or website like PayPal or Venmo

• Make a payment directly from your bank account

• Sending a check

Which of the following statements about this W-2 is true?

• Nikita earned a different amount of money outside of California than she did in California.

• Nikita paid state income taxes of $1,535.00.

• Nikita earned about $130,000 in 2019 based on the total of her Wages, Social Security wages, and Medicare Wages

• Reaadle will use this W-2 to file their 1040 form.

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

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

• Janet, who earned $28,000 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 generated income of $17,000

Based on this pay stub below, how much was the paycheck written for?

• $383.76

• $970.00

• $1,556.24

• $778.12

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 does not count)

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

At what point in the hiring process might you be expected to complete forms for taxes, health insurance, and other company benefits?

• After you submit your resume but before you interview

• Within the first few days of starting your new job

• Once they've made you an offer, but before you formally accept the job

• After you interview, so they can use the info to help decide whether to hire you