Taxes Quiz

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

• Local

• State

• Federal

• FICA

The federal income taxes that are withheld from your paycheck are used to pay for what?

• Mandatory spending

• Discretionary spending

• Unemployment insurance

• Medicare and Social Security

All of the following options are benefits we receive as a result of government spending EXCEPT…

• Health and retirement benefits for seniors

• Credit card debt forgiveness

• National parks maintenance

• Public school education

What is the difference between gross pay and net pay?

• Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay

• There is no difference between gross pay and net pay

• Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

What are Pre-Tax Deductions and Contributions?

• Contributions taken out of your paycheck AFTER taxes are calculated on your income

• Contributions taken out of your paycheck BEFORE taxes are calculated on your income

What are two examples of Employer Contributions?

• Health insurance and 401(k)

• 401(k) and Roth IRA

• Federal and state taxes

• Traditional and Roth IRA

Which of the following statements about the W-4 form is TRUE? (select all that apply)

• The purpose of the form is to provide employees with reported wage and salary information

• This form is given to employees every January

• This form is given to employees on their first day on the job

• The purpose of the form is to let employers know how much money to withhold from an employee's paycheck for taxes

Miguel has been working at his job for 3 years and already filled out a W-4 when he was first hired. This year, he just got married and is planning on filing his taxes jointly with his spouse. What should he do?

• Email his HR department that they need to update his W-4

• Keep the same information on his W-4

• Request to fill out a new W-4 from his employer

• Wait until next April to fill out a new W-4

You will need to include all of the following information on a W-4 form EXCEPT…

• Name and address

• Earned income from previous job

• Social Security number

• Marital status

Only U.S. citizens can be claimed as a dependent for tax purposes.

• True
• False