Taxes Review

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.

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

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 dose 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 mone mistake on your federal taxes can result in your being convicted of a crime

• 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

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

Which of the following describe what a "dependent" is for tax purposes?

• Someone under the age of 19 who you financially support

• Someone who is temporarily disabled

• Someone who financially supports you

• Someone who is a full-time student under the age of 30.

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

• withholding

• direct deposit

• deduction

• refund

What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.

• 1040

• I-9

• W-2

• W-4

The W-4 form lets...

• the government know how much you paid in taxes last year

• your employer know how much to withhold from your paycheck

• the 3 major credit bureaus know how many dependents you have

• you know how much you paid in taxes last year

Gross pay and Net pay are the same thing.

• True

• False

You file taxes to show you paid the right amount in...

• Sales tax

• Income tax

• Property tax

What is the name of the agency that collects taxes in the United States?

• Secret Service

• Federal Bureau of Investigation

• Internal Revenue Service