Taxes Check for Understanding

Which of the following are the three largest categories of federal government spending?

• infrastructure, defense, science

• education, defense, food/agriculture

• health, military, interest on debt

• military, education, science

What does the term "withholding" mean in reference to your paycheck?

• it is the amount of your paycheck that you are NOT being taxed on

• it is how much is being taken out of your paycheck in taxes

• it is how much you are going to owe the government when you file your annual tax return

• it is how much you earn and includes salary, bonus and commissions

When do you start paying taxes?

• when you turn 18

• 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

• when you make more than the minimum income requirement

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

• it 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

• completing the 1040 form incorrectly will mean the wrong amount of taxes will be withheld form your paychecks going forward

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

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal and state income taxes?

• W-2

• 1099

• W-4

• I-9

When determining whether you need to file a federal tax return, each of these questions matter EXCEPT

• what state do you live in?

• how much income did you earn this year?

• what type of income did you earn this year?

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

What form am I? I am received when you start a job. You use me to prove that you are eligible to work in the US, and you must provide forms of identification when submitting me.

• I-9

• 1099

• 1040

• W-4

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a

• withholding

• direct deposit

• deduction

• refund

Which of the following describe what a "dependent" is for tax purposes?

• someone under the age of 19 who you financially support

• someone who is temporarily disabled

• someone who financially supports you

• someone who is a full-time student under the age of 30

Upon completing your 1040, you realize that you owe the IRS $427. Each of the following is a possible way to pay the taxes you owe EXCEPT

• write a check and mail to IRS

• tell the IRS to take out more taxes next year to pay back the $427

• set up an auto-transfer from your bank account if you e-file

• use your debit or credit card online or by phone