Tax Form Completion Quiz

Why should you accurately complete a W-4 form any time you start a new job or change your tax status?

• Your W-4 determines how much Federal income tax money your employer should withhold.

• You need a copy of your W-4 to file your tax return annually.

• Completing a W-4 will guarantee you receive a large tax refund.

• Your W-4 determines your total tax bill at the end of the year.

On a pay stub, the amount of money that is left after withholdings is known as…

• Gross pay

• Wages and tips

• Annual earnings

• Net pay

All of the following are ways to pay any taxes you owe EXCEPT...

• Make a payment directly from your bank account

• Using your debit or credit card to make an online payment

• Use an app or website like PayPal or Venmo

• Sending a check

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

• It is how much you are going to owe the government when you file your annual tax return.

• It is how much is being taken out of your paycheck in taxes.

• It is how much you earn and includes salary, bonus and commissions.

• It is the amount of your paycheck that you are NOT being taxed on.

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company?

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

• You must file your tax return by 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 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 income taxes?

• W-4

• 1040

• I-9

• W-2

When determining whether you NEED to file a federal tax return, each of these questions matter EXCEPT...

• What state do you live in?

• Are you claimed as a dependent on anyone else's tax return?

• How much income did you earn this year?

• What type of income did you earn this year?

Which of the following statements about this W-2 is true?

•  

  Lily works in the same city that Avia Consulting is based in.

  
  

• Lily paid state income taxes of $1,189.90.

   

•  

  Lily earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages.

  
  

• Avia Consulting will use this W-2 to file their 1040 form.

  
  

What was the net (or take-home) pay for this employee for this pay period?

• $250.35

• $1,102.98

• $1,353.33

• $1,502.10

How much did this person pay towards Medicare in this pay period only?

• $19.62

• $83.91

• $40.82

• $106.00