Taxes Unit Test

Our tax money is spent on all of the following EXCEPT:

• Social Security

• The military

• Private School Education

• National Parks

The W-4 form lets...

• The government know how much you paid in taxes last year

• Your employer know how much to withhold from your paycheck

• The 3 major credit bureaus know how many dependents you have

• You know how much you paid in taxes last year

What item would you DEFINITELY see on a paystub?

• Retirement

• Healthcare

• Gross Pay

• Your occupation/role

All wages, tips, and bonuses are taxable unless specifically excluded.

• True

• False

Who is Medicare designed to help?

• low income families

• single parents

• senior citizens

• children of unemployed parents

Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called ______________________ taxes.

• Sales

• Excise

• Federal use

• Property

To calculate her net worth, Jordyn should use the following formula:

• Assets - Liabilities = Net worth

• Assets x Liabilities = Net worth

• Assets + Liabilities = Net worth

• Assets / Liabilities = Net Worth

You should only receive a Form W-2 if you are

• An employee

• An Employer

• A contractual worker

• A tax preparer

By accurately completing this form when you begin a new job, it can prevent you from overpaying taxes (allowing you to keep more money in each paycheck), and it can ensure you don't have a big balance due at tax time.

• From W-2

• Form W-4

• Form 1040

• Form 1099

The IRS recommends that you complete a new Form W-4 every time a major life event occurs, such as: - Marriage - Birth of a child - A spouse gaining or losing a job - All of the above

• Marriage

• Birth of a child

• A spouse gaining or losing a job

• All of the above