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Taxes

Total questions: 35

Worksheet time: 33mins

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, in college, & has a job that provides 65% of her support. Is she a dependent?

a)

Yes

b)

No

3.

Jason is 15 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 16 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.

4.

What do you need to file your 1040 form? (hint: choose 2 correct answers)

a)

Your W-2

b)

Your W-4

c)

Your prior year's tax return

d)

Social Security Number

5.

If a teen files a tax return, can the parent still claim him/her as a dependent?

a)

Yes. All teens are dependents until they are 18 years old

b)

No. If a teen files a tax return, he/she cannot be claimed

c)

Yes, as long as the teen meets the dependency requirements

d)

Yes, but the parent has to add the teen's income to theirs

6.

Luisa earned $1,200 at her part-time job, and $500 from babysitting in cash. Which is TRUE?

a)

She will report her total income as $1,700.

b)

She will report her total income as $1,200.

c)

She will report her total income as $500.

d)

Luisa is required to file a tax return.

7.

Which is TRUE if you do not pay your taxes?

a)

You owe twice as much the following year

b)

You're more likely to be approved for low interest loans

c)

You cannot go to jail (but you will be heavily fined)

d)

Your credit score may be impacted

8.

Curtis purchased a new pair of jeans for $18. When Curtis pays for his jeans his total is almost $20 because of taxes. Which type of tax does Curtis pay?

a)

Payroll Tax

b)

Income Tax

c)

Sales Tax

d)

Property Tax

9.

Your parents pay a tax each year of $3500 that is based off the value of your home. Which type of tax do your parents pay each year?

a)

Payroll Tax

b)

Income Tax

c)

Sales Tax

d)

Property Tax

10.

Jason pays taxes each year to the federal government based off his yearly income. These taxes help pay for thinks like roads, bridges, and fire fighters. Which type of tax does Jason pay?

a)

Payroll Tax

b)

Income Tax

c)

Sales Tax

d)

Property Tax

11.
Roads, police, schools, governmental agencies, fire and emergency services are all funded by taxes
a)
true
b)
false
12.
Helps provide retirement income for the elderly and pays disability benefits
a)
medicare
b)
social security
c)
state income tax
d)
federal income tax
13.
A health care program for the elderly and disabled
a)
social security
b)
medicare
c)
state income tax
d)
federal income tax
14.
a tax in which the tax rate increases as the taxable amount increases
a)
progressive
b)
regressive
c)
flat
d)
proportional
15.
A _____________tax may at first appear to be a fair way of taxing citizens because everyone, regardless of income level, pays the same dollar amount. By taking a closer look, it is easy to see that such a tax causes lower-income people to pay a larger share of their income than wealthier people pay
a)
progressive
b)
income
c)
flat
d)
regressive
16.
A _________ tax, also referred to as a flat tax, impacts low-, middle- and high-income earners relatively equally. 
a)
regressive
b)
proportional
c)
income
17.
Federal Income tax is a _______tax
a)
proportional
b)
flat
c)
regressive
d)
progressive
18.

Without taxes our government would not be able to run effectively.

a)

True

b)

False

19.

People who do not pay their taxes are called

a)

Tax evaders

b)

Taxpayers

20.
The standard deduction is an amount that everyone can subtract from their income before they calculate their taxes.
a)
True
b)
False
21.
When revenue exceeds expenses, you have a budget
a)
surplus
b)
deficit
c)
that is balanced
d)
catastrophe
22.
When expenses exceed revenue, you have a budget 
a)
that is balanced
b)
deficit
c)
surplus
d)
misunderstanding
23.

Taxes can be ...

a)

Local

b)

State

c)

National

d)

All are correct

24.

Select the correct answer ...

a)

Tax avoidance is criminal

b)

Tax evasion is legal

c)

Tax avoidance minimizes tax liability without violation of tax rules

d)

Tax avoidance produces penalties

25.

If we want more services from the Government ...

a)

Taxes increase

b)

Taxes decrease

c)

The Government will need less money

d)

All are correct

26.

Classification of taxes ...

a)

Direct - Indirect

b)

Legal - Criminal

c)

Cheap - expensive

d)

All are correct

27.

IRS stands for

a)

Internal Revenge Service

b)

International Revenue System

c)

Internal Revenue Service

d)

Inspection Ravioli Sauce

28.

The official date for when taxes are due

a)

January 15

b)

February 15

c)

March 15

d)

April 15

29.

When filing for taxes, the government will inform you if you receive or pay the government. This is called

a)

Tax write-off

b)

Taxation

c)

Tax profit

d)

Tax return

30.
Salaries and wages represent
a)
Dividend income
b)
interest income
c)
adjustable gross income
d)
earned income
31.

What does the term "withholding" mean in reference to your paycheck?

a)

it is the amount of your paycheck that you are NOT being taxed on

b)

it is how much is being taken out of your paycheck in taxes

c)

it is how much you are going to owe the government when you file your annual tax return

d)

it is how much you earn and includes salary, bonus and commissions

32.

When do you start paying taxes?

a)

when you turn 18

b)

when you get a full-time job (part-time does not count)

c)

when you are notified by the IRS that you are required to pay federal income taxes

d)

when you make more than the minimum income requirement

33.

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a

a)

withholding

b)

direct deposit

c)

deduction

d)

refund

34.

Upon completing your 1040, you realize that you owe the IRS $427. Each of the following is a possible way to pay the taxes you owe EXCEPT

a)

write a check and mail to IRS

b)

tell the IRS to take out more taxes next year to pay back the $427

c)

set up an auto-transfer from your bank account if you e-file

d)

use your debit or credit card online or by phone

35.

Out of the following group, who does NOT have to file a tax return?

a)

Janet, who earned $28,300 but was paid entirely in cash

b)

Max, whose total income from three separate part-time jobs was $9,500

c)

Isaiah, who owns his own business and generated an income of $7,000