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Worksheets1040, Compensation & Taxes
Total questions: 25
Worksheet time: 19mins
Juanita has a part-time job that pays $12/hour and she works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?
$700
$500
$120
$600
Why should you accurately complete a W-4 form any time you start a new job or change your tax status?
Your W-4 determines your total tax bill at the end of the year.
Completing a W-4 will guarantee you receive a large tax refund.
Your W-4 determines how much Federal income tax money your employer should withhold
You need a copy of your W-4 to file your tax return annually.
Why is it important to be extremely careful when completing your 1040 form?
Mistakes on your 1040 form make you ineligible for employment during the next year
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward.
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government.
Making even one mistake on your federal taxes can result in your being convicted of a crime.
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...
Are you claimed as a dependent on anyone else's tax return?
What type of income did you earn this year?
How much income did you earn this year?
What state do you live in?
All of the following are ways to pay any taxes you owe EXCEPT...
Using your debit or credit card to make an online payment
Use an app or website like PayPal or Venmo
Make a payment directly from your bank account
Sending a check
Which of the following statements about this W-2 is true?
Nikita earned a different amount of money outside of California than she did in California.
Nikita paid state income taxes of $1,535.00.
Nikita earned about $130,000 in 2019 based on the total of her Wages, Social Security wages, and Medicare Wages
Reaadle will use this W-2 to file their 1040 form.
Out of the following group, who does NOT have to file a tax return?
Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips
Janet, who earned $28,000 but was paid entirely in cash
Max, whose total income from three separate part-time jobs was $9,500
Isaiah, who owns his own business and generated income of $17,000
Based on this pay stub below, how much was the paycheck written for?
$383.76
$970.00
$1,556.24
$778.12
When do you start paying taxes?
When you turn 18
When you make more than the minimum income requirement
When you get a full-time job (part-time does not count)
When you are notified by the IRS that you are required to pay federal income taxes
At what point in the hiring process might you be expected to complete forms for taxes, health insurance, and other company benefits?
After you submit your resume but before you interview
Within the first few days of starting your new job
Once they've made you an offer, but before you formally accept the job
After you interview, so they can use the info to help decide whether to hire you
What does the term "withholding" mean in reference to your paycheck?
It is how much you are going to owe the government when you file your annual tax return.
It is how much is being taken out of your paycheck in taxes
It is how much you earn and includes salary, bonus and commissions.
It is the amount of your paycheck that you are NOT being taxed on.
Which statement about filing a tax return is FALSE?
Filing with a tax professional may be good for those people who got a divorce, bought a house, or changed their financial situation in another major way.
Paper filing your tax return is free, but it takes a lot longer to process and get back a refund if you are owed one.
People who are not familiar with filing taxes should not use e-filing software, because there is no access for support if they need it.
Filing with a tax professional is often the method that is most susceptible to scams.
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...
Write a check and mail it to the IRS.
Tell the IRS to take out more taxes next year to pay back the $427.
Use your debit or credit card online or by phone.
Set up an auto-transfer from your bank account if you e-file.
Which form am I? I am received when you start a job. You use me to prove that you are eligible to work in the US, and you must provide forms of identification when submitting me.
I-9
1040
W-4
1099
Which of the following statements about the W-2 form is TRUE?
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form.
You need a separate W-2 form from EACH of your employers in order to file your taxes.
The W-2 includes information about the interest you earned from your investments.
A W-2 lists all of the money you earned in cash over the last year.
Which tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.
W-4
W-2
I-9
1040
How frequently is this employee paid?
Bi-weekly
Daily
Monthly
Weekly
You just graduated from college and have been fortunate to have received two job offers in your chosen field of accounting. Which of these factors would matter in making a decision about which firm to join?
1. Only the salary that each firm is offering
2. A combination of salary and the benefits package that each firm is offering
3. The company's tax rate
4. The city that each firm is located in
5. The career opportunities that each firm offers beyond the entry-level position
1, 4 & 5
1
2, 3, 4 & 5
2, 4 & 5
When people refer to "Tax Day" they mean...
December 31, the last day to earn income and have it count toward that tax year
January 1, the first day of the calendar year
April 15, the deadline to file your taxes
Whatever day your tax refund comes in the mail
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal income taxes?
W-4
W-2
1040
I-9
Marquis earns $2,000 as a cashier at a fast food restaurant during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. Based on how he completed his W-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April?
Nothing will happen, but Marquis will miss out on his potential refund.
The IRS will refund his $200 to his parents.
The IRS will fine Marquis $75 or more for not filing taxes.
The IRS will refund $200 directly to him.
How much did this person pay towards Medicare in this pay period?
$120.28
$28.12
$60.14
$14.06
Jessica worked as a teacher in Louisiana until June of last year. She then moved to Mississippi for her new job as an Assistant Principal and started working in August of last year. Which is TRUE for Jessica?
Jessica will have to file a state tax return for both Louisiana and Mississippi.
Jessica will have to file a state tax return for Louisiana only.
Jessica will have to file her Louisiana tax return THIS year. NEXT year, she will have to file a Mississippi state tax return.
Jessica will have to file a state tax return for Mississippi only.
Elaine is an employee. Which of the following steps is she responsible for?
Send withholding amounts to the federal government
Determine how much tax to withhold based on W-4 information
Complete a W-4
Request a W-2 annually
If you do contract work for a company where you are not an employee, you may receive which tax form in the mail?
W-2
1099
Schedule C
1040
