Taxes Review

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

• The amount of your paycheck that you are NOT being taxed on

• How much you are going to owe the government when you file your annual tax return

• How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement

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

• Making a mistake will disqualify you from receiving future refunds

• The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government

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

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 taxes?

• W-4

• W-2

• 1040

Juanita has a part-time job that pays $12/hour and works about 80 hours every two weeks.  What is Juanita’s gross pay for these two weeks?

• $920

• $960

• $980

From #5, will Juanita’s net pay be more or less than her gross pay?

• more

• less

• stays the same

Look at screen for reference. Which of the statements about this W-4 is TRUE? (Check all that apply).

• Mr. Khan is filing as a single person, or is married filing separately.

• Mr. Khan is requesting no extra withholding.

• Mr. Khan is claiming at least one dependent.

Elaine just accepted a new job and is working with the employer to complete necessary paperwork.  Which of the following steps will Elaine need to know and/or have? (Check all that apply).

• Her name and address

• Social Security number

• Pay stubs from past employers

What is the name of the tax form that requires you to file your taxes every year, usually by around April 15th?

• W-2

• 1040

• W-4

Look at the screen for reference. Which of the following statements about this W-2 form is true? (Check all that apply).

• Lily will use this W-2 to file her 1040 form.

• Lily earned between $38,000 and $39,000 in total wages for the year 2022 from Avia Consulting.

• Lily paid a higher federal income tax, than a state income tax.

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

• withholding

• deduction

• refund