Taxes Review

Mandatory government spending includes which of the following?

• 1. Infrastructure and science

• 1. Social Security and Medicare

• 1. Healthcare and military

• 1. Education and agriculture

Michael received his first paycheck and noticed a term "withholding" on it. What does this term mean in reference to his paycheck?

• 1. How much you are going to owe the government when you file your annual tax return

• 1. The amount of your paycheck that you are NOT being taxed on

• 1. How much you earn and includes salary, bonus and commissions

• 1. How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement

Why is it important for Michael to be extremely careful when completing his 1040 form?

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

• 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

Aiden works for a company and his only income is the salary paid by his employer. Which of these statements about filing his taxes is true?

• You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date

• You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money

• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

• You need to file your tax return by the end of the calendar year (typically December 31st)

Henry is starting his first job and is asked to complete some paperwork on his first day. Which form will determine how much money is withheld from his paycheck for taxes?

• 1. I-9

• 1. W-2

• 1. W-4

• 1. 1040

David is reviewing his paycheck and wants to know which of the following paycheck withholdings puts money into a retirement investment fund that he will manage?

• 1. Social Security

• 1. Medicare

• 1. 401(k) contribution

• 1. Federal income taxes

Jackson just got a new job and needs to provide identification to prove he is eligible to work in the U.S. What is the name of the tax form he needs to fill out?

• 1. I-9

• 1. 1099

• 1. 1040

• 1. W-4

When David completes his 1040 form, if he overpaid his taxes and the government owes him money, that is called a __________.

• 1. withholding

• 1. direct deposit

• 1. deduction

• 1. refund

Mason received his paycheck for this pay period. What was his net (or take-home) pay?

• 1. $335.10

• 1. $400.00

• 1. $2,680.80

• 1. $3,200

1. Olivia paid a certain amount towards Medicare in this pay period only. How much did she pay? 
   

• 1. $44.50

• 1. $52.20

• 1. $5.80

• 1. $24.80