Topic 3 Quiz (Taxes) - P1

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. Medicare and Social Security are mandatory spending categories funded by which type of taxes that are withheld from your paycheck?

• Local
• State
• Federal
• FICA

5. The federal income taxes that are withheld from your paycheck are used to pay for what? (NOT S.S. OR M.M.)

• Mandatory spending
• Discretionary spending
• Unemployment insurance
• Medicare and Social Security

6. Which of the following people is/are legally required to file a tax return?

• Amanda, who can be claimed as a dependent and earned $850 last year
• Greg, who can be claimed as a dependent and earned $12,650 last year
• Jason, who cannot be claimed as a dependent and earned $1,500 last year
• Erin, who cannot be claimed as a dependent and earned $14,000 last year

7. Which of the following are examples of mandatory government expenses?

• Social Security & Medicare/Medicaid
• Education & Military
• Defense & Social Security
• Health & Medicare / Medicaid

8. Which of the following are examples of discretionary government expenses?

• Social Security & Medicare/Medicaid
• Education & Military
• Defense & Social Security
• Health & Medicare / Medicaid

9. What factor determines if you are a dependent?

• IF you live with your parents
• IF you are a U.S. citizen and under the age of 18
• IF you file taxes with your parents
• IF you are married and filing jointly

10. What factor determines if parents can claim a dependent?

• IF the child does not have a job
• IF the child has a job
• IF 50% of support is given to the child (shelter, food, clothing)
• IF the child is married and filing jointly