MM Fall Final Review 2021

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

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

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

• 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

Jay filed his taxes and found out he owes money. What is the most reasonable explanation as to why he owes money in taxes?

• Not enough money was withheld from his paychecks.

• Too much money was withheld from his paychecks.

• When filing his taxes, Jay accidentally checked “Married filing jointly” instead of “Single”.

• The IRS is asking Jay for a future advance on his possible taxes for next year.

All of the following are factors that impact the amount someone may pay in taxes EXCEPT...

• Income

• Political Party

• State

• Marital Status

Which of the following is the largest source of income for the Federal government?

• Payroll Tax

• Income Tax

• Corporate Tax

• Property Tax

Which of the statements about the current U.S. tax system is TRUE?

• Our current system is described as being a progressive system because it imposes higher rates on those who earn more.

• Your friend tells you his marginal tax rate is 22%. That means that he pays 22% on all of his income.

• Everyone in the US who makes more than $12,400 pays one flat tax rate.

• Our current system is described as being a regressive system because it imposes higher rates on those who earn less.

For an hourly worker, gross pay is found by multiplying the number of hours worked by the hourly rate of pay.

• True

• False

The form used to report taxable income a worker received during the calendar year is called a

• Form

• Form A

• Form W-2

• Form W-4

The following elements describe a SMART goal

• Short, Measurable, Action, Realistic, Time Bound

• Specific, Monetary, Attainable, Recognize, Temporary

• Specific, Measurable, Attainable, Realistic, Time Bound

• Short term, Mandatory, Attainable, Reachable, Timely

The United States has a(an) _________ economy, which is based on the laws of supply and demand.

• Mixed

• Command

• Traditional

• Market

Which of the following statements about money are true?

• Money can be used to settle debt, is easily exchangeable, and readily available in the marketplace.

• Money must be divisible or able to be divided into denominations.

• Must be durable, and recognized to represent value.

• All the statements are true.