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WorksheetsCareers and Taxes
Total questions: 20
Worksheet time: 10mins
What is true about the W-4 form?
The government knows how much you paid in taxes last year.
Your employer knows how much to withhold from your paycheck.
You know how much you paid in taxes last year.
All of the above
The more allowances you claim on your W-4...
The more money you will see in your paycheck.
The less money you will see in your paycheck.
The # of allowances has no impact on your paycheck.
You don't claim allowances on a W-4.
Which is TRUE about earned income and unearned income? (Select all that apply.)
Earned income is how much you make from a job.
Earned income is any money you make in interest, dividends, etc.
Unearned income is any money you make in interest, dividends, etc.
Unearned income is how much you make from a job.
Which is TRUE if you do not pay your taxes?
You owe twice as much the following year.
You're more likely to be approved for low interest loans.
You cannot go to jail, but you will be heavily fined.
The Internal Revenue Service can assess penalties and interest.
What is the difference between gross pay and net pay? (Select all that apply.)
Net pay is income after deductions.
Gross pay is income after deductions.
Gross pay is income before deductions.
Net pay is income before deductions.
Which day are income taxes due in the United States?
January 1
April 1
April 15
August 15
Which tax form shows total amount of earned income and taxes withheld for the year?
W-2
W-4
1099-INT
1040
Complete this tax form to determine how much to withhold from your paycheck.
W-2
W-4
1099-INT
1040
If you receive more than one job offer, you should compare the benefits packages, salaries, and other factors to determine which company best meets your needs.
True
False
The average person spends 90,000 hours at work over a lifetime.
True
False
When filing your taxes, you find out that you owe money. What is the reason?
Too much money was withheld from your paychecks.
Not enough money was withheld from your paychecks.
What is the percentage of gross income that goes to your monthly debt payments?
DTI ratio
Benefits
Lifestyle
Cost of living
What is the first recommended step in choosing a career?
Gain experience.
Research your options.
Make a decision.
Complete a self-assessment.
Which of the following financial impacts is describe as the amount needed to cover basic expenses?
Debt-to-income ratio
Lifestyle
Cost of living
Benefits
What is a portion of an employee's wages that is withheld to pay for government programs?
Taxable income
Adjusted gross income
Tax evasion
Payroll taxes
Taxable income is also known as _____.
Gross income
Adjusted gross income
Net income
Deductions
Which of the following factors can potentially decrease one's income?
Obtaining another degree or certificate
Gaining more experience
Switching to another position with less responsibilities
Moving to another city with a higher cost of living
In reference to your paycheck, what does the term "withholding" mean?
It is the amount of your paycheck that you are NOT being taxed on.
It is how much is being taken out of your paycheck in taxes.
It is how much you are going to owe the government when you file your annual tax return.
It is how much you earn and includes salary, bonus and commissions.
Why is it important to be extremely careful when completing your 1040 form?
It determines whether you owe additional taxes or are entitled to receive a refund from the government.
Making even one mistake on your federal taxes can result in your being convicted of a crime.
Completing it incorrectly will result in the wrong amount of taxes withheld from your paychecks.
Mistakes make you ineligible for employment for the following year.
After completing your 1040 form, if you overpaid your taxes and the government owes you money, it is called a/an _____.
withholding
direct deposit
deduction
refund
