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Unit 5 Review

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

The federal government's major source of income is:

a)

coporate income tax

b)

personal income tax

c)

tariffs

d)

sales tax

2.

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 in taxes.

d)

It is how much you earn and includes salary, bonus and commissions.

3.

Eric Wilhelm's tax year ends on December 31. Eric's due date for filing his personal income tax return is:

a)

January 1

b)

February 15

c)

March 15

d)

April 15

4.

The portion of the FICA tax that assists the retired population with their health and hospital care is known as:

a)

Medicare

b)

Medicaid

c)

Retirement benefits

d)

Disability benefit

5.

A characteristic of the W-4 form is:

a)

it is mailed to you by your bank or savings institution

b)

claiming less exemptions decreases your withholdings

c)

you attach a copy to your tax return

d)

claiming less exemptions increases your withholdings

6.

This form is sent by your employer by January 31st to report income and taxes withheld:

a)

Form W-2

b)

Form W-4

c)

Form 1040

d)

Form 1099

7.

The purpose of this form is to tell your employer the number of allowances you are claiming to calculate the amount of tax withholding.

a)

1040

b)

1099

c)

W-2

d)

W-4

8.

This form is sent by a bank to those who earned interest on their savings with a second copy to the IRS.

a)

1040

b)

1099

c)

W-2

d)

W-4

9.

This past year you worked at the Gap, Soldier Field, and Jimmy Johns and earned interest at a Savings Bank. Which document(s) will you need to complete your 1040 tax return?

a)

W-4 form

b)

W-4 and 1099 forms

c)

W-2 and 1099 forms

d)

W-2 forms

10.

Which of the following terms does this definition describe:

Based on marital status and family situation: Determines the rate at which income is taxed: Single, Married filing jointly, Married filing single, Head of Household.

a)

Social Security Tax

b)

Federal Income Tax

c)

Filing Status

d)

Medicare Tax

11.

Which of the following terms does this definition describe:

Monies taken from your paycheck (and your employers) each for retirement funds (6.2%).

a)

Social Security Tax

b)

Federal Income Tax

c)

Filing Status

d)

Medicare Tax

12.

Which of the following terms does this definition describe:

Monies taken from your paycheck that is given to the Federal Government for Federal Services.

a)

Social Security Tax

b)

Federal Income Tax

c)

Filing Status

d)

Medicare Tax

13.

Which of the following terms does this definition describe:

Monies taken from your paycheck (and your employer) for retirement health care services (1.45%).

a)

Social Security Tax

b)

Federal Income Tax

c)

Filing Status

d)

Medicare Tax

14.

A dependent is someone who:

a)

relies on someone else to provide a quarter or less of their financial support

b)

relies on someone else to provide more than half of their financial support.

c)

is able to financially support themselves fully.

d)

provides financial support for someone else.

15.

Which of the following are the three largest categories of federal government spending?

a)

infrastructure (nondefense), defense, and health

b)

health, military, and interest on debt

c)

veterans, infrastructure (nondefense), and education

d)

education, defense, and food/agriculture