Taxes Quiz Review

Gross Pay is...

• the amount of money you are paid after AFTER any taxes are taken out of paycheck

• the amount of money you are paid after BEFORE any taxes are taken out of paycheck

• amount of money in paycheck with bonuses and overtime

• none of these

Withholding too much in taxes will result in:

• owing money during tax season

• allowing the government to borrow your money interest-free

• a higher paycheck

• none of these

It is necessary to have your W-2 form in order to complete your taxes and submit them to the IRS.

• True

• False

• Depending on certain conditions

• Maybe!

When you start a new job, you fill out a W-4 form to:

• determine your net pay

• determine your gross pay

• determine how much Federal Income Tax your employer should withhold from your paycheck

• determine how much Federal Income Tax should be withheld so you can avoid paying state income tax

Which statements are TRUE about taxes?

• Taxes pay for schools, roads and first responders

• Taxes are only collected by state governments

• Taxes are only collected by Federal governments

• none of these are true

Write-offs you are permitted to subtract from your gross income to calculate your taxable income are called:

• dependents

• deductions

• cost of living

• withholding

Deductions and credits can ___________ what you owe in taxes each year.

• add to

• lower

• stop

• none of these

Which of the following should be considered when you select a job offer?

• your health benefits

• vacation time/sick time paid

• your salary

• all of these

A person should aim to withhold what percent of their taxes for April 15?

• 75%

• 80%

• 85%

• 90%

The type of tax rate system used in the United States is:

• Regressive Tax System

• Degressive Tax System

• Progressive Tax System

• none of these