Final

1. Mandatory government spending includes which of the following?

• Infrastructure and science
• Social Security and Medicare
• Healthcare and military
• Education and agriculture

2. What does the term "withholding" mean in reference to your paycheck?

• The amount of your paycheck that you are NOT being taxed on
• How much you are going to owe the government when you file your annual tax return
• How much you earn and includes salary, bonus and commissions
• How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement

3. When do you start paying income taxes?

• When you turn 18
• When you get a full-time job (part-time does not count)
• When you make more than the minimum income requirement
• When you are notified by the IRS that you are required to pay federal income taxes

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

• Making a mistake will disqualify you from receiving future refunds
• 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 form make you ineligible for employment during the next year

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

• Social Security
• The Military
• Private School Education
• National Parks

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

What item would you DEFINITELY see on a paystub?

• Retirement
• Gross Pay
• Healthcare
• Your occupation/role

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.

True or False: All wages, tips, and bonuses are taxable unless specifically excluded.

• True
• False

Which is TRUE if you do not pay your taxes?

• You owe twice as much the following year
• You're more likely to be approved for low interest loans
• You cannot go to jail (but you will be heavily fined)
• Your credit score may be impacted