Taxes Unit Test

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.

Our tax money is spent on all of the following EXCEPT:

• Social Security

• The Military

• Private School Education

• National Parks

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

Which is TRUE about earned income and unearned income? (hint: choose 2 correct answers)

• Earned is how much you make from a job

• Earned is any money you make in interest, dividends, etc.

• Unearned is any money you make in interest, dividends, etc

• Unearned is how much you make from a job

A health care program for the elderly and disabled

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

Out of the following group, who is not legally required to file a tax return?

• Janet, who earned $28,200 but was paid entirely in cash.

• Max, whose total income from three separate part-time jobs was $9,500.

• Isaiah, who owns his own business and generated an income of $7,000.

• Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips.

By claiming "exempt" on the W-4 form...

• You are paying all income taxes upfront at the START of the year.

• You are requesting an extension to file your taxes

• You will NOT have income taxes withheld from your paycheck.

• You are paying all income taxes at the END of the calendar year.

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

Which of the following is NOT a way you can file your taxes?

• Through a tax professional

• Mailing in a paper tax return to the Federal government

• Using tax software like TurboTax

• Through your employer's HR department