Personal Finance Tax Review

What are the two components of Payroll Taxes?

• Social Security and Medicare

• Social Security and Medicaid

• Medicare and Medicaid

• Payroll and Sales Taxes

Payroll Taxes can include all of the following except

• state income tax

• Sales tax

• Federal income tax

• FICA

Gross Income includes all of the following except

• tips

• child support payments received

• wages

• game show winnings

Which of the following is FALSE about the W-2 form? (hint: choose 2 correct answers)

• The W-2 is sent out by December 31st of every year

• It lets you know how much you earned last year

• It lets you know how much was withheld from your paychecks

• You get 1 W-2 form every year, even if you had multiple jobs

When you are ready to file for taxes you must have form

• W-2

• W-6

• WD40

• W-2484

Which is bigger, gross pay or net pay?

• gross pay
• net pay

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal and state income taxes?

• W-2

• 1099

• W-4

• I-9

A standard deduction is

• Income you receive for upholding good standards.

• Is a $1,000 taken off your tax bill to reduce your tax bill.

• A fixed amount all people are allowed to deduct from their AGI to reduce their tax liability.

• A specific expense or expenses that, under law, can be deducted from income to reduce the amount of income subject to income tax

The purpose of deductions and exemptions is to reduce

• Your Adjusted Gross Income (AGI)

• Your Net Income

• Your Capital Gains

• Your Take Home Pay.

A Tax Return is

• How much the government returns to you every year.

• A formal report to the IRS that contains all the information relative to a person's income taxes for a specific year.

• Is a musical group that sings about taxes.

• Is a government form used to complain about being over-taxed.