Personal Finance Quiz

Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?

• Social Security

• Medicare

• 401(k) contribution

• Federal Income Taxes

If your salary is paid by your employer, which of these statements about filing your taxes is true?

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

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

• 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

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

Akshay worked at a cafe while he was a college senior in Boston, Massachusetts. After graduating in June, he moved back to his home in California and started a full-time job in September. Which of the following statements is true?

• Akshay will need to file only a federal tax return

• Akshay will need to file a federal tax return and a state tax return for Massachusetts

• Akshay will need to file a federal tax return and a state tax return for both Massachusetts and California

• Akshay will need to file a federal tax return this year and file state returns the following year

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 taxes?

• W-4

• W-2

• I-9

• 1040

What does the term "withholding" mean when it comes to your paycheck?

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

• How much you are going to owe the government when you file you 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

Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?

• Filing your taxes using a website is always free of charge

• You are guaranteed a higher refund than if you were to use a paper form or hire a professional

• If you owe money to the IRS, you receive a discount if you e-file use a tax filing website

• You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online

Why is it important to be extremely careful when completing you taxes? (form 1040)

• 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

Mandatory government spending includes which of the following?

• Infrastructure & Science

• Social Security & Medicare

• Healthcare & Military

• Education & Agriculture

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.

• withholding

• direct deposit

• deduction

• refund