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Financial Management: Unit 3 Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Taxes are fees that the government ___________ people to pay in order to live and work in their state and the USA.

a)

requires

b)

does not require

2.

You must file your federal and state income taxes by April _____.

a)

25th

b)

1st

c)

15th

3.

What agency is responsible for collecting federal income taxes for the US government?

a)

Internal Revenue Service (IRS)

b)

NC Department of Revenue

c)

NC Department of Agriculture

4.

Which answer below is an example of earned income?

a)

Interest earned on a savings account.

b)

Money earned from working at the mall.

c)

Money received from Social Security.

5.

Which item listed below is not funded by taxes in your community?

a)

public library

b)

community center

c)

fast food restaurant

6.

When you get a job, you will be required to complete a ________ form. This form is usually completed on your first day of work or at an employee training prior to starting work.

a)

W-4

b)

W-2

c)

1040EZ

7.

The __________ form shows how much money you made and how much you paid in taxes from the previous year.

a)

D-400

b)

W-2

c)

W-4

8.

Use the W-2 above to answer question. How much money did Jackson make last year?

a)

$25,304.90

b)

$1,255.60

c)

$7,236.86

9.

Use the W-2 above to answer question. How much did Jackson pay in federal income taxes last year?

a)

$25,304.90

b)

$7,234.86

c)

$1,255.60

10.

Use the W-2 above to answer question. How much did Jackson pay in state income taxes last year?

a)

$1,255.60

b)

$7,236.86

c)

$25,304.90

11.

A _______________ is a person who relies on another person, usually a family member, for financial support.

a)

taxpayer

b)

dependent

c)

community

12.

One way to prepare and file your federal income tax return is online. Filing your taxes online is called ___________ .

a)

government file

b)

e-File

c)

manual file

13.

One benefit of using e-file to prepare and file federal and state income taxes is _________ .

a)

takes longer to complete

b)

increased accuracy in calculations

c)

increased math errors

14.

Taxpayers may prepare and file their tax returns electronically from all of the following except

a)

home

b)

post-office

c)

Authorized e-file provider

15.

The ______ offers free file software for individuals who have an income below $62,000.

a)

schools

b)

IRS

c)

employer

16.

John is single, 20 years old, and makes less than $100,000 a year. He has no children. Which federal tax form should he use?

a)

1040EZ

b)

W-4

c)

W-2

17.

E-filers are issued a Personal Identification Number or ______ allows the taxpayer to "sign" the return electronically.

a)

1040EZ

b)

PIN

c)

D-400

18.

E-file offers direct deposit for _________ refunds.

a)

faster

b)

smaller

c)

increased

19.

The NCDOR e-File for_______and e-File for fee website has a list of approved tax preparation software for participating e-File providers.

a)

fun

b)

free

c)

businesses

20.

John lives in North Carolina, is single, and earns more than $5,500 per year. He should use the ______ form to file your state income taxes.

a)

D-400

b)

1040EZ

c)

W-4