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Taxes Review

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

What are taxes?

a)

Money paid to the government for no reason.

b)

The cost of living in this country.

c)

The amount of money due to the government as a donation,

2.

Social Security and Medicare taxes are also known as ________ taxes.

a)

FICO

b)

GAAP

c)

FICA

d)

NAFTA

3.

Income taxes are a _________________.

a)

type of tax levied on taxable income by different levels of government.

b)

type of tax for purchases bought withing the US.

c)

type of tax on money earned from selling specific investments.

d)

type of tax placed on any money that a person borrows.

4.

FICA stands for ______________>

a)

Federal Indigenous Consumer Action

b)

Fiscally Independent Consumer Act

c)

Friendly Insurance Contributions Action

d)

Federal Insurance Contributions Act

5.

Which of these is not a filing status in the US?

a)

Married - Filing Separately

b)

Single

c)

Head of Household

d)

Divorced/Separated

e)

Married - Filing Jointly

6.

Social Security and Medicare help all of the following

a)

People of advanced age

b)

People with a disability

c)

Puppies

d)

Survivors

e)

Coworkers

7.

A person who qualifies for a single filing status must be:

a)

Unmarried

b)

Widowed with small children

c)

Divorced

d)

Legally separated

8.

Married couples that file a joint tax return combine which of the following?

a)

deductions and exemptions

b)

income, deductions and exemptions

c)

income and exemptions

d)

income and deductions

9.

People that are married but file separate tax returns must split which of the following?

a)

income, deductions and exemptions

b)

deductions and exemptions

c)

income and deductions

d)

exemptions and income

10.

Head of household tax filers meet which of these conditions?

a)

Pay for everything in regards to their child's life.

b)

Maintain a home and pay for less than half the cost of keeping up the home.

c)

Pay for nothing in their child's life or their own.

d)

Maintain a home and pay for more than half the cost of keeping up the home.

11.

Standard deductions are ________.

a)

set amount of money that is deleted from a person's taxes no matter their filing status.

b)

predetermined amounts of money that are added to a person's taxes based on filing status.

c)

blanket deductions based on a taxpayer's filing status, age and vision.

d)

random amounts of money that are taken from one person's taxes and added to another person's taxes.

12.

Which of these are types of itemized deductions?

a)

Medical expenses

b)

Work expenses

c)

Personal debt

d)

Charitable donations

e)

Property tax value

13.

What is an exemption?

a)

Additional taxes added to tax returns of people with large families.

b)

Deductions from income based on the number of people supported by a person's income.

c)

Money removed from your tax debt based on how many children you have.

d)

Additions to income based on the number of people supported by a person's income.

14.

Itemized deductions are ______________.

a)

Expenses that add to the money you owe to the government.

b)

Income level based lowering of tax debt.

c)

Money earned that pays off all your taxes.

d)

Personal expenditures that can be deducted from taxable income.

15.

Tax credits affect a person's tax liability not their taxable income. True or False

a)

True

b)

False

16.

The IRS is short for _______________.

a)

Internal Review Service

b)

Integral Revenue Search

c)

Internal Revenue Service

17.

What is a tax audit?

a)

Examination by the IRS to validate the accuracy of a given tax return.

b)

Unfair persecution of a person by the federal government.

c)

The government attempting to get more money out of its citizens.

18.

Which of these is a legal way to reduce the taxes you owe to the government?

a)

Tax Deferral

b)

Tax Circumvention

c)

Tax Avoidance

d)

Tax Evasion

19.

Tax evasion is illegal and involves which of these things?

a)

Failing to report income correctly

b)

Failing to pay or file taxes completely

c)

Not paying your tax bill on time

d)

Failing to accurately report deductions

20.

Which of these people has been accused of tax evasion?

a)
b)
c)
d)
e)
21.

Tax deferred income is ________________.

a)

not going to be taxable at any point in the future.

b)

not ours to keep.

c)

not subject to taxes immediately but will be at some point.

d)

does not exist, its a myth.

22.

Which of these is a W2?

a)
b)
c)
23.

Which of these is a W4?

a)
b)
c)
24.

Which of these is the 1040?

a)
b)
c)