Taxes Quiz

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

• Veterans, Infrastructure, and Education

• Infrastructure, Defense, and Science

• Health, Military, and Interest on Debt

• Education, Defense, and Food/Agriculture

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

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

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

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

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

When do you start paying taxes?

• When you turn 18

• When you make more than the minimum income requirement

• 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

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

• Making even one mistake on your federal taxes can result in your being convicted of a crime

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

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

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

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

• 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 wait until after that date to withhold any money

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

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

• I-9

• W-4

• 401(k) contributions

Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?

• Medicare

• 401(k) contributions

• Social Security

• Federal Income Taxes

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…

Selected:a. Are you claimed as a dependent on anyone else's tax return?

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

• What type of income did you earn this year?

• What state do you live in?

• How much income did you earn this year?

Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?

• $600

• $120

• $500

• $700

Which of the statements about this W-4 is TRUE?

• Mr. Khan is filing as married filing jointly.

• Mr. Khan’s paycheck will have less money withheld from his paycheck since he is claiming a dependent.

• Mr. Khan submitted this W-4 two days after he started working at Little Company Inc.

• Mr. Khan is requesting for an additional $50 to be withheld from his paycheck.