Taxation Review

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

• Social Security

• The military

• Private School Education

• National Parks

What item would you DEFINITELY see on a paystub?

• Retirement

• Healthcare

• Gross Pay

• Your occupation/role

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

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.

• Form W-2

• Form W-4

• Form 1040

• Form 1099

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

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

• How much you are going to owe the government when you file your annual 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, an retirement

Which of the following describes what a "dependent" is for tax purposes?

• A child or adult that you support financially

• Someone who is temporarily disabled

• An adult who financially supports you

• Someone who is a full-time student under the age of 30

If a taxpayer fills out their W4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?

• They will receive a refund

• They will owe a payment to the IRS

• They will be audited

• They will be charged with tax evasion

Jessica is 16 years old and earned $1,100 through her photography side gig. Her parents can claim her as a dependent on their tax return. All of the following statements are true EXCEPT...

• Jessica is required to file an income tax return

• Jessica should expect to receive a W2 in January

• Jessica is required to pay a 15.3% self-employment tax

• Jessica can file her own tax return even though her parents are claiming her as a dependent