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Fin Lit (Taxes)

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

In the United States, taxes are collected by the:

a)

IRS

b)

FBI

c)

Supreme Court

d)

President of the US

2.

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns.

a)

W-2

b)

W-4

c)

1040

d)

1099-INT

3.

A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck.

a)

W-2

b)

W-4

c)

1040

d)

1099-INT

4.

Form that an employer must send to an employee (usually in January) and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck

a)

W-2

b)

W-4

c)

1040

d)

1099-INT

5.

Withholding

a)

The portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state and local taxes

b)

A government-run insurance program that provides healthcare assistance to elderly and disabled Americans

c)

A range of income amounts that are taxed at a particular rate

d)

The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay

6.

When it comes to taking taxes out of a person's paycheck, the saying is...

a)

Everyone pays the same amount, no matter how rich or poor.

b)

The more you make, the more they take.

c)

All for one and one for all!

d)

Everyone pays half their paycheck

7.

Stewie had his employer withhold the maximum amount of taxes per paycheck, so Stewie likely overpaid the government for taxes this year, meaning he will _______.

a)

get a refund

b)

owe the government

c)

hire an accountant

d)

go to prison for tax evasion

8.

What is the standard deduction for a single taxpayer with no dependents?

a)

12,550

b)

24,800

c)

18,650

d)

5,000

9.

Which of the following criteria describe a "dependent?"

a)

Is under 19, or under age 24 and a full-time student, or permanently disabled at any age

b)

Lives with you more than 50% of the year

c)

Doesn’t provide more than half of his or her own financial support

d)

all of the above

10.

A W-2 will be sent to Lily by the end of January. She will use this form to...

a)

obtain employment

b)

receive her paycheck

c)

file her taxes

d)

begin her retirement savings account

11.

What document reports interest income?

a)

W-2

b)

W-4

c)

1040

d)

1099-INT

12.

Federal Income Tax

a)

Used to support government programs such as military defense and public services

b)

Any income (wages/salary) that is generated by working

c)

A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes

d)

Summary of the income you earned during the year and all amounts the employer withheld for taxes

13.

Which of these is NOT a tax that would be automatically withheld from your paycheck?

a)

sales tax

b)

federal income tax

c)

state income tax

d)

social security tax

14.

The total amount of money you earn, before taxes and deductions are taken out, is your...

a)

net pay

b)

gross pay

c)

take home pay

d)

taxable income

15.

The money you get to keep from each paycheck, after taxes and other deductions are taken out, is called...

a)

net income

b)

gross income

c)

taxable income

d)

disposable income

16.

Social Security

a)

social insurance system that provides benefits to most Americans who are retired, sick, or too disabled to work, and to families of workers who have died

b)

A business cost that increases or decreases, such as labor

c)

The things you like and enjoy doing

d)

A social insurance program that extends health coverage to almost all Americans age 65 and over

17.

When is Tax Day?

(a)  

18.

What tax forms would you need to complete your taxes? (Select all that apply).

a)

W-2

b)

1040

c)

1099-INT

d)

Driver's License

19.

What is the current tax rate for Social Security?

a)

1.45%

b)

5%

c)

6.2%

d)

7.65%

20.

What is the current tax rate for Medicare?

a)

1.45%

b)

5%

c)

6.2%

d)

7.65%