Taxes Review

Macauley 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.
• When filing his taxes, Jay accidentally checked “Married filing jointly” instead of “Single”.
• Too much money was withheld from his paychecks.
• He worked too many hours
• The IRS is asking Jay for a future advance on his possible taxes for next year.

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

• Payroll tax
• Corporate tax
• Property tax
• Income tax

When starting a new job you will fill out a ____ to determine how much federal income tax money your employer should withhold.

• W-4
• W-2
• 1099
• Your employer will not require any forms.

Which of the following people should NOT choose exempt on their W-4? Check all that apply.

• Bobby, who is 15 and expects to earn about $2,000 from his summer job.
• Stacey, who is 16 and expects to earn $10,500 from her part-time job.
• Jose, who is 23 and expects to earn $15,000 from his part-time job.
• Susie, who is 28 and expects to earn $65,000 from her full-time job.
• James, who is 22 and expects to earn $15,850 from his internship.

The Federal government spends the most amount of tax money on...

• Science
• Veterans
• Education
• Health

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

• Income
• State you live in
• Religion
• Marital status

You filled out your 1040 and realized you owe more than you expected. The IRS will allow you to set up a loan that requires you to pay what you owe in taxes as well as interest. You must contact them to do so.

• True
• False

A W-2 will be sent to you if

• You worked for 2 days and quit because the job wasn't for you.
• You worked for the local grocery store in the calendar year prior in a paid position.
• You babysat for your aunt and you kept track of your earnings.
• You worked for yourself selling clothes online.

What are 2 examples of discretionary spending?

• Social Security
• Medicare
• Education
• Military

Our current tax system is a progressive system meaning the more money you make the larger your % of income withheld.

• True
• False