Taxes

FICA contributions withheld from your paycheck are used to pay for ______

• roads, bridges, and other infrastructure projects

• Medicaid and other anti-poverty programs

• Social Security and Medicare

• national defense

Of the following, the federal government spends the largest chunk of your tax dollars on _____.

• national defense and the military

• housing programs for the poor

• NASA

• environmental protection

On a pay stub, YTD stands for ______

• Youth Tax Deduction

• Year To Date

• Yearly Tax Deviation

• Yearly Tax Deduction

Gross pay refers to _____

• the money direct deposited into your bank account

• your total pay before taxes and deductions

• your total pay after taxes

• the total taxes you pay the government

When you first start a job, you will complete IRS form _____, which helps the employer determine how much to withhold from your paycheck for tax purposes.

• W4

• 1040

• W2

• 1080

Jake is 15 years old, a sophomore in high school, and lives with his parents, who pay for most of his expenses. He earned a total of $9,500 last year, some of which was withheld by his employer for federal income tax purposes. Which of the following statements is TRUE?

• Jake cannot be claimed as a dependent

• Jake is legally required to file a tax return

• If Jake files a tax return, he can receive a tax refund

Yannah is 18 years old, is a high school senior, and lives with her parents who support her financially. She earned $6,300 from her part-time job this past year. She claimed EXEMPT on her W-4 on her first day of work. Which of the following statements is FALSE?

• Yannah's parents can claim her as a dependent

• Yannah is not legally required to file a tax return

• If Yannah files a tax return, she will receive a tax refund.

Yemisi is 23 years old, is no longer and school and supports herself financially. She earned $45,000 this past year. Her employer ended up withholding slightly more federal income tax dollars from Yemisi's paychecks than she was legally required to pay. Which of the following statements is FALSE?

• Yemisi's parents can not claim her as a dependent

• Yemisi is not legally required to file a tax return

• If Yemisi files a tax return, she is eligible for a tax refund.

Which of the following is NOT a pre-tax deduction that may be withheld from an employee's paycheck?

• health insurance contribution

• 401(k) contribution

• money to pay for rent

• dental insurance

Net pay refers to ______

• The total amount your employer pays you

• Your total pay after taxes and deductions

• The amount of money you pay the government in taxes

• The tax rate applied to your gross pay