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WorksheetsPF - Theme 5 Taxes review
Total questions: 48
Worksheet time: 24mins
Name
Class
Date
1.
1. The number of dependents claimed on a W-4 form
a)
Allowances
b)
Withholding
2.
the process where employers deduct income taxes from their employee's pay each pay period and forward it to the different levels of government at regular intervals
a)
Allowances
b)
Withholding
3.
the amounts of money, required and voluntary, that are subtracted from an employee's gross pay by their employer
a)
Tax deductions
b)
Payroll deductions
4.
Valid expenses that can be used to reduce the amount of income that an individual must pay income taxes on
a)
Tax deductions
b)
Payroll deductions
5.
A phrase used to describe the approximate day of the year when the average worker has finally earned enough cumulative income to pay all of their taxes for the year
a)
Total tax burden day
b)
tax freedom day
6.
The amount of an individual's pay/income that they must pay income taxes on
a)
Taxable pay/income
b)
Gross income
7.
The total amount of income an individual receives from all sources in one year before deductions and taxes are subtracted
a)
Taxable pay/income
b)
Gross income
8.
The money an individual actually takes home each pay period and is free to spend
a)
Take home/Net pay/income
b)
Gross income
9.
Income received from sources other than employment, such as interest, Retirement accounts, gambling winnings, inheritances, etc
a)
Unearned Income
b)
Earned Income
10.
Income earned from activities such as going to work, including wages, salaries, tips, etc
a)
Unearned Income
b)
Earned Income
11.
taxes paid to various levels of government based on the amount of income an individual or business earns each calendar year.
a)
Income Tax
b)
Occupational Tax
12.
taxes paid by employees to fund the federal program that pays for the health care benefits for eligible retired workers
a)
Medicare Taxes
b)
Social Security Taxes
13.
taxes paid by employees to fund the federal program that provides retirement and disability benefits to eligible retired workers
a)
Medicare Taxes
b)
Social Security Taxes
14.
Federal Income Tax Return
a)
W4
b)
W2
c)
I9
d)
1099
e)
1040
15.
Wage and Tax Statement that shows the total earnings from your employer and the amount of taxes and other deductions withheld from your wages for the year
a)
W4
b)
W2
c)
I9
d)
1099
e)
1040
16.
Federal Employee withholding Allowance Certificate given to employer when hired for them to use to determine the amount of income tax to be withheld from your paycheck
a)
W4
b)
W2
c)
I9
d)
1099
e)
1040
17.
form used for verifying the identity & employment authorization of individuals hired for employment in the US
a)
W4
b)
W2
c)
I9
d)
1099
e)
1040
18.
Miscellaneous Income form that shows income from sources other than normal wages such as interest earned, lottery or gambling winnings, rent received, etc.
a)
W4
b)
W2
c)
I9
d)
1099
e)
1040
19.
multiple digit code that identifies the bank where your account is located
a)
Bank routing number
b)
Bank account number
20.
multiple digit code that identifies your bank account
a)
Bank routing number
b)
Bank account number
21.
The Internal Retirement Service is the government agency responsible for administering, upholding tax laws, and collecting income taxes
a)
true
b)
false
22.
The money you actually get to take home is considerably less than the amount you are paid for the work you do.
a)
true
b)
false
23.
Everyone, regardless of their age, if meet the minimum requirements determined by the tax law, are responsible for paying income taxes
a)
true
b)
false
24.
Only some states or local governments charge income taxes because they have special permission by the IRS.
a)
true
b)
false
25.
If your employer does not withhold the correct amount of taxes from your pay, you will not be required to pay any additional taxes that are owed.
a)
true
b)
false
26.
Unearned income (interest, winnings, investments, etc) is not considered part of gross income and are therefore is not subject to income tax
a)
true
b)
false
27.
The more allowances you claim on a W-4 form, the less money will be withheld in taxes.
a)
true
b)
false
28.
A single person living in NJ, earning $50,000, will have a greater take home pay than a married couple living in NJ, earning $50,000.
a)
true
b)
false
29.
Rules for determining taxable income for State or local income taxes may be different than the rules to determine taxable income for Federal income taxes
a)
true
b)
false
30.
It is possible to receive a refund of all of the taxes withheld from your paycheck
a)
true
b)
false
31.
Social Security and Income Taxes have a maximum amount to be paid each year.
a)
true
b)
false
32.
The average worker in the US will pay about 5-10% of their income in Federal, State, and Local Income taxes
a)
true
b)
false
33.
Our government currently uses a “Pay-as-you-earn” method for collecting taxes which requires employers to deduct income based taxes from their employee's pay whenver the employee chooses and forward it to the different levels of government at regular intervals
a)
true
b)
false
34.
Our federal tax system is a Progressive tax system which requires higher income amounts to be taxed at a lower rate
a)
true
b)
false
35.
Payroll deductions decrease the amount of money you will bring home each pay period
a)
true
b)
false
36.
Tax deductions decrease the amount of money that will be subject to income tax
a)
true
b)
false
37.
Taxable pay is equal to
a)
gross pay - tax deductions
b)
gross pay – payroll deductions
38.
Your take home pay depends on
a)
required payroll deductions
b)
voluntary payroll deductions
c)
Allowances claimed on your W4
d)
all choices
39.
One legal, effective way to reduce the amount of income tax you are required to pay is to claim as many allowances as you want regardless of if you supoort that many people
a)
true
b)
false
40.
Everyone earning above the minimum amount specified each tax year, is required by law to file a tax return by
a)
April 15th of the following year
b)
Jan 31st of the following year
41.
Medical insurance
a)
Required Payroll Deduction
b)
Voluntary Payroll deduction
42.
Income tax
a)
Required Payroll Deduction
b)
Voluntary Payroll deduction
43.
SS tax
a)
Required Payroll Deduction
b)
Voluntary Payroll deduction
44.
401 K contribution
a)
Required Payroll Deduction
b)
Voluntary Payroll deduction
45.
Medicare Tax
a)
Required Payroll Deduction
b)
Voluntary Payroll deduction
46.
SS tax is based on
a)
Gross Pay/Income
b)
Taxable Pay/Income
47.
Medicare Tax is based on
a)
Gross Pay/Income
b)
Taxable Pay/Income
48.
income tax is based on
a)
Gross Pay/Income
b)
Taxable Pay/Income
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