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Worksheets

Earned Income & Taxes Review

Total questions: 29

Worksheet time: 15mins

Name
Class
Date
1.

True or False: Keeping a log of business expenses is an example of tax avoidance.

a)

True

b)

False

2.

True or False: A taxpayer cannot claim a personal exemption on his or her own tax return when he or she can be claimed as a dependent on another taxpayer's return.

a)

True

b)

False

3.

True or False: The point of the excise tax is to discourage the purchase of goods that do not promote consumers' health.

a)

True

b)

False

4.

True or False: An exemption increases the income that is subject to be taxed.

a)

True

b)

False

5.

True or False: Allowances are additions to the amount of income tax that must be withheld from you paycheck.

a)

True

b)

False

6.

True or False: It is customary for employees to receive three to ten days a year as "sick days" without deductions from pay.

a)

True

b)

False

7.

True or False: The process of negotiating a work contract for union members is called bargaining.

a)

True

b)

False

8.

When preparing a budget, you need to focus mostly on your

a)

Gross income

b)

Net income

c)

Disposable income

d)

Taxable income

9.

Which of the following benefits are employers required by law to provide?

a)

child care

b)

paid vacations

c)

worker's compensation

d)

all of them are correct

10.

Money offered to encourage employees to strive for higher levels of performance is called ___ pay.

a)

bribe

b)

overtime

c)

incentive

d)

benefit

11.

Because the IRS respects the taxpayer;s right to ____, only authorized tax officials cans ee a taxpayer's return.

a)

Appeal

b)

Courteous service

c)

representation

d)

privacy

12.

If a taxpayer disagrees with the IRS about tax liability after an examination or audit, the taxpayer can ask the ____ to review the case.

a)

court

b)

Congress

c)

police

d)

state

13.

Most tax returns are

a)

rejected by the IRS

b)

selected for examination

c)

appealed by taxpayers

d)

accepted as filed

14.

Which of the following is NOT reported on the form W-2?

a)

Wages, tips, and other compensation

b)

Federal income tax withheld

c)

Medicare tax withheld

d)

The number of withholding allowances claimed by the employee on Form W-4

15.

Employers use which form to compute the amount of federal income tax to withhold?

a)

Form W-4

b)

Form W-2

c)

Form 1040EZ

d)

None of these are correct

16.

A progressive tax takes the largest percentage of income from which group?

a)

middle-income

b)

low-income

c)

high-income

d)

no income

17.

What do Social Security taxes pay for?

a)

wages to federal workers and military personnel

b)

support for people who are temporarily unemployed

c)

transportation and training expenses for low-income people

d)

benefits to older citizens and people with certain disabilities

18.

Who pays unemployment taxes?

a)

unemployed people

b)

the federal government

c)

employers

d)

employees

19.

Which of the following are NOT needed at the tax preparer’s office?

a)

pay stub

b)

a list of medical expenses

c)

rental/lease agreement

d)

a list of dependents and social security numbers

20.

What does IRS stand for?

a)

International Revenue Service

b)

Income Revenue Service

c)

Internal Revenue Service

d)

None are correct

21.

Wage and tax Statement

a)

Audit

b)

Overtime

c)

Incentive

d)

W-2

22.

Deadline to file an income tax form.

a)

April 15

b)

June 11

c)

May 25

d)

December 25

23.

Money offered to encourage employees to strive for higher levels of performance is called ______ pay.

a)

Audit

b)

Gross

c)

Overtime

d)

Incentive

24.

A work schedule that fits the normal 40-hour workweek into less than five days is called ______ workweek.

a)

Compressed

b)

Overtime

c)

Incentive

d)

Net Pay

25.

Used to pay for schools, defense and roads.

a)

Gross Pay

b)

Net Pay

c)

Taxes

d)

Incentives

26.

_____ is time worked beyond the regular hours.

a)

Net Pay

b)

Overtime

c)

Gross Pay

d)

Taxes

27.

Take home pay.

a)

Overtime

b)

Compressed

c)

Net Pay

d)

Gross Pay

28.

An examination of a business or individual tax return by the Internal Revenue Service.

a)

Revenue

b)

IRS

c)

Audit

d)

Judgement

29.

The total amount you earn before any deductions are subtracted is called ______ pay.

a)

Overtime

b)

Gross Pay

c)

Net Pay

d)

Withholdings