The Tax Cycle & Job Paperwork Overview

1. When starting a new job, employees must fill out a(n) ___________________________ form to indicate their tax withholding preferences.

• 1040

• w-2

• w-4

• I-9

1. To verify employment eligibility, new hires in the U.S. must complete the  ___________________________ form. 

• 1040

• w-2

• w-4

• I-9

1. Individuals who work for themselves, such as freelancers or contractors, are considered ___________________________. 

• 1040

• household employee

• self-employed

• dependent

1. The ___________________________ form is used to report various types of income other than wages, salaries, and tips.

• 1040

• 1099

• w-2

• I-9

1. You recently accepted a new job and your first day is next week. What form will you have to complete before you receive your first paycheck?

• 1040

• w-4

• w-2

• I-9

1. You were unable to file your taxes before the April deadline and your application for an extension was approved. What month was your deadline extended to?

• May

• October

• December

• April

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

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

• 1. This form is given to employees every January

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

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

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

• 1. Marital status

• 1. Social Security number

• 1. Earned income from previous job

• 1. Name and address

1. If you overpaid your taxes throughout the year, you will likely receive a(n) ___________________________ when you submit your tax return. 

• 1040

• a tax bill

• refund

• nothing

1. Which of the following statements most accurately describes why it’s important to correctly fill out a W-4 form?

• 1. It determines how much money is withheld from your paycheck and can result in under or overpayment of taxes if filled out incorrectly

• 1. It is a legally binding contract between you and your employer that determines how much they pay you

• 1. If you pay the exact right amount in taxes, you receive a tax credit in the following year

• 1. If you underpay your taxes, you’ll be responsible for additional penalties beyond your normal tax obligation