Taxes Quiz 1

Which calendar date is the deadline to file your taxes?

• January 1st

• April 15th

• September 7th

• December 31st

Which of the following is one of the three largest categories of federal government spending?

• Defense

• Education

• Roads and Highways

• Science

You're a high school student and definitely want to file the easiest tax return possible. You hear the 1040EZ is the way to go. In which of the following situations would you be able to file a 1040EZ?

• You have two dependents and $65,000 of taxable income

• You have no dependents and $65,000 of taxable income

• You have two dependents and earned dividends from the shares of Coca-Cola and Wal-Mart that you own

• You have no dependents and earned dividends from the shares of Coca-Cola and Wal-Mart that you own

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech company?

• You need to file your tax return by the end of the calendar year (typically December 31st)

• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

• You must file your tax return by April 15th of the following year, or request an extension by that date

• You do not need to pay any income taxes until April 15th so you should ask your company to NOT take out any taxes on your salary

Which of the statements about our current tax system are TRUE?

• Our current system is described as being a progressive system since it has different tax rates for different levels of income

• Your friend tells you his marginal tax rate is 37.5%. That means that he pays 37.5% on all of his income

• If your income is $75,000, you will probably only pay tax in one bracket

• The higher your salary, the lower your marginal income tax rate

Which of the following is NOT a way to file your taxes?

• Filing a paper copy

• Using tax software

• Using your stockbroker

• Using professional tax preparers

Which of the following statements is TRUE?

• If you select one allowance on your W-4 and you are single, then you are guaranteed not to owe any tax when you file your tax return by April 15th.

• If you select one allowance on your W-4 and you are single, then you will owe the standard deduction when you file your tax return by April 15th.

• Even if you select one allowance on your W-4 and you are single, then you will have to use tax forms, software, or a tax professional to calculate what you owe before filing your tax return by April 15th.

• Even if you select one allowance on your W-4 and you are single, then you will need a professional tax preparer to sign off on your tax return by April 15th.

The W-2 Form is important for each of the following reasons EXCEPT?

• Indicates the wages that you have received in the past year

• If you are an employee at a company, you cannot file a tax return without your W-2

• Includes information about the taxes withheld from your pay throughout the year

• It includes information about the interest you earned from your investments

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

• W-4

• 1040EZ

• 1040

What is the federal income tax rate that is withheld from a paycheck?

• It depends on the information in your W-4 and your salary

• 6.2%

• 1.45%

• 25%