Taxes - Unit Test

Normally, you must file your federal taxes by April 15th or request an extension from the IRS

• True
• False

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.

When do you start paying income taxes?

• When you turn 18
• When you make more than the minimum income requirement

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

• The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
• Mistakes on your 1040 form make you ineligible for employment during the next year

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

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
• I-9
• 1040

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

• 401(k) contribution
• Federal income taxes

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

• What type of income did you earn this year?
• What state do you live in?

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

• I-9
• 1040

Your friend Laila is talking to you about the benefits of tax filing software. Which of the following is true?

• Filing your taxes using the software is always free of charge.
• You can avoid the costs of having to pay a professional, though you may have to pay for the software and/or e-filing online.