Tax Unit Review

Hannah's first paycheck from her job shows that $450 was taken out in taxes. Which type of tax was taken out of Hannah's paycheck?

• Payroll Tax

• Income Tax

• Sales Tax

• Property Tax

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

Jessie did not meet the minimum income requirement to file a tax return. What is one reason for why she should file a tax return anyway?

• She could potentially get a refund for the taxes that were withheld from her paycheck.

• She still needs to report her income to the Federal government.

• She can qualify for a higher tax refund next year.

• She is still legally required to file a tax return even if she does not meet the minimum income requirement to owe taxes.

What is the key difference between Net Pay and Gross Pay?

• Net pay is the total amount of money you get BEFORE taxes are deducted.

• Gross pay is the total amount of money you get AFTER taxes are deducted.

• Net pay is the total amount of money you get AFTER taxes are deducted.

• Gross pay is the total amount of money you get BEFORE retirement, healthcare, and dental care have been deducted.

Jess is 21, in college, & has a job that provides 65% of her support. Is she a dependent?

• Yes

• No

Jason filed his tax return and owes money. If he doesn't want to pay a fee, when should he pay this amount by?

• April 15th

• October 15th

• December 31st

• January 1st of the next year

Jason is 15 and earned $1450 at his job last summer. Should he file a tax return?

• No, because he didn't earn enough.

• No, because you have to be 16 and older to file taxes.

• Yes, because he may get a refund.

• Yes. Legally, you must file taxes even if you didn't earn enough.

A health care program for the elderly and disabled

• social security
• medicare
• state income tax
• federal income tax

Also known as take home pay, this is the amount left after all payroll deductions have been taken from the gross income

• gross pay
• withholdings
• net pay
• real pay

Federal Contribution Insurance Act (FICA) are withheld from your paycheck and sent to the government. These are used for (Two answers are to be selected)

• Social Security

• State

• Medicare

• Sale