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Taxes Test Review

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

You want to know how much tax you have had withheld. Which form tells you how much money is withheld from your paycheck for federal and state income taxes?

a)

W-2

b)

W-4

c)

I-9

d)

401(k)

2.

What was the net (or take-home) pay for this employee for this pay period?

a)

250.35

b)

1102.98

c)

1353.33

d)

1502.10

3.

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

a)

The amount of your paycheck you are NOT being taxed on

b)

How much you owe the government when you file your annual tax return

c)

The money taken from your earnings and sent to the IRS to pre-pay your taxes.

d)

How much you earn in salary, bonus and commissions.

4.

How much did this person pay towards Medicare in this pay period only?

a)

19.62

b)

40.82

c)

117.72

d)

244.92

5.

How frequently is this employee paid?

a)

Daily

b)

Weeklyl

c)

Every other week

d)

Monthly

6.

Elaine is an employee. Which of the following must she do?

a)

Contact the IRS to tell them how much withholding she has each pay period.

b)

Calculate and publish her W2

c)

Mail her withholding amounts to the federal government

d)

Review her paystub regularly and notify her employer if she finds a mistake

7.

When must you file a tax return?

a)

When you have income greater than the minimum income requirement

b)

When you turn 18

c)

When you get a full time job (part time doesn't count)

d)

When you're notified by the IRS that it's time to pay

8.

Which of the following statements about this W-2 is true?

a)

Lily's withholdings were $4,768.50

b)

Lily works in the same city that Avia Consulting is based in

c)

Lily earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages

d)

Avia Consulting will use this W-2 to file their 1040 form

9.

Which of the following statements about the W-2 form is TRUE?

a)

A W-2 lists all the money you earned in cash over the last year

b)

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form

c)

You need a separate W-2 form from EACH of your employers in order to file your taxes

d)

The W-2 includes information about the interest you earned from your investments

10.

Which of the following describes a "dependent" for tax purposes?


a)

Someone under the age of 19 who you financially support

b)

Someone who is temporarily disabled

c)

Someone who financially supports you

d)

Someone who is a full time student under the age of 30

11.

Where do you find the amount to enter on line 1, "Wages, salaries, tips, etc," of the form 1040?

a)

It's the net pay on your most recent paycheck

b)

In box 1, "wages tips and other compensation" of the W2

c)

Add up how much you earned in your head

d)

In box 2, Federal income tax withheld, of the W4

12.

What does the Standard Deduction represent?

a)

The amount subtracted from adjusted gross income to find taxable income

b)

The amount of income that is taxed

c)

Total wages, salaries, and tips

d)

The amount of income you pay the IRS

13.

Rohan is 35, single, and can not be claimed as a dependent by anyone. If he uses the Standard Deduction, what is the amount he can deduct on his 2021 return?

a)

The amount entered on Line 1 of his 1040

b)

$350 plus his gross earnings from Line 1 of his 1040

c)

$25,100

d)

$12,550

14.

True or False: Taxes are calculated based on the amount on Line 11, adjusted gross income.

a)

True

b)

False

15.

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 it to the IRS.

b)

Use your debit or credit card online or by phone.

c)

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

d)

Set up a direct payment from your bank account.

16.

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

17.

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

a)

Janet, who earned $28,200 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 $17,000.

d)

Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips.

18.

Marquis is starting a fast food job 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. He earns $2000. 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?

a)

The IRS will refund his $200 directly to him.

b)

The IRS will refund his $200 to his parents.

c)

The IRS will fine Marquis $75 or more for not filing taxes.

d)

Nothing will happen, but Marquis will miss out on his potential refund.