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Income & Taxes

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.

The W-4 form lets...

a)

the government know how much you paid in taxes last year

b)

your employer know how much to withhold from your paycheck

c)

the 3 major credit bureaus know how many dependents you have

d)

you know how much you paid in taxes last year

2.

Jess is 21, a part-time college student, & has a job that provides 65% of her support. Is she a dependent?

a)

Yes

b)

No

3.

The more allowances you claim on your W-4...

a)

The more money is withheld from your paycheck

b)

The less money is withheld from your paycheck

c)

The # of allowances doesn't impact how much $ is withheld

d)

You claim allowances on a W-2, not the W-4

4.

Which of the following is FALSE about the W-2 form? (hint: choose 2 correct answers)

a)

The W-2 is sent out in April of every year

b)

It lets you know how much you earned last year

c)

It lets you know how much was withheld from your paychecks

d)

You get 1 W-2 form every year, even if you had multiple jobs

5.

Jason is 16 and earned $1450 at his job last summer. Should he file a tax return?

a)

No, because he didn't earn enough.

b)

No, because you have to be 18 and older to file taxes.

c)

Yes, because he may get a refund.

d)

Yes. You must file taxes even if you didn't earn enough.

6.

Which of the following is NOT a way you can file your taxes?

a)

Through a tax professional

b)

Mailing in a paper tax return to the Federal government

c)

Using tax software like TurboTax

d)

Through your employer's HR department

7.

Net Pay

a)

A required payment for the support of a government.

b)

A principle that reflects the worth you place on an idea or action.

c)

A business owner who takes the risk of owning and operating a business.

d)

Your actual take home pay

e)

Your total wages from working

8.

Employees who are paid biweekly are paid twice a week.

a)

True

b)

False

9.

State law requires employers to pay a minimum wage.

a)

True

b)

False

10.

In most circumstances, which of the following persons can be claimed as a dependent on a Form W-4? Mark all that apply.

a)

yourself

b)

your spouse

c)

your parents

d)

your children

e)

your pets

11.

pay based on number of hours worked is called

a)

salary

b)

wages

c)

earned income

d)

unearned income

12.

a fixed rate of pay for week, month, or year is called

a)

wages

b)

commission

c)

tips

d)

salary

13.
When is a W4 form filled out?
a)
When you file your taxes
b)
When you quit a job
c)

Right when you start a job

14.

Which of the following forms is a summary of what you made & what you paid? Hint: You DON'T fill it out, but it IS needed in order to file your taxes

a)

W2 Form

b)

W4 Form

c)

1040EZ

d)

I9 Form

15.

On the W-4 form, which would give you more money in your pocket per paycheck, a 0 or a 1?

a)

1 withholding

b)

0 withholding

c)

They are the same

16.
Time and a half pay is ...
a)
1.0 x normal rate
b)
1.5 x normal rate
c)
2.0 x normal rate
17.
The length of time for which an employee’s wages are calculated
a)
payday
b)
pay period
c)
payroll
d)
direct deposit
18.
The formula for calculating overtime pay is
a)
total hours worked X  the employee’s rate of pay per hour.
b)
total hours worked over 40 hours in a week X the employee’s rate of pay per hour X 1.5
c)
total hours worked over 40 hours in a week X the employee’s rate of pay per hour X 1.25
d)
none of the above.
19.

A fixed amount all people are allowed to deduct from their adjusted gross income to reduce their tax liability

a)

Standard Deduction

b)

Itemized Deduction

20.

entitled to some or all of one's money in a retirement plan when leaving a company

a)

benefit

b)

insurance

c)

bonus

d)

vested

21.

factors on IRS Form W-4 that affect the amount of income tax withholding care called

a)

allowance

b)

dependent

c)

deduction

d)

none of these

22.

someone who is supported by a taxpayer's income

a)

allowance

b)

deduction

c)

dependent

d)

none of these

23.

on a tax return, an amount subtracted directly from the amount of tax owed

a)

itemized deduction

b)

standard deduction

c)

tax credit

d)

none of these

24.

What is the normal tax day each year (the day income tax returns must be filed by)?

a)

January 31

b)

March 1

c)

April 1

d)

April 15

25.

If you are not required to file a income tax return for the year, why would you do it anyway?

a)

to make sure the IRS does not audit you

b)

to see if you would get a refund

c)

for fun

d)

I wouldn't