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Taxes Unit Test Review

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Who primarily uses our tax money? (hint: choose 2 correct answers)

a)

Your employer

b)

The state government

c)

The Federal government

d)

Local Businesses

2.

Our tax money is spent on all of the following EXCEPT:

a)

Social Security

b)

The Military

c)

Private School Education

d)

National Parks

3.

Which of the following is NOT a category in the Federal government's spending?

a)

Mandatory spending

b)

Discretionary spending

c)

Interest on loans issued

d)

Interest on national debt

4.

The W-4 form lets...

a)

the government know how much you paid in taxes last year

b)

your employer know how much to withhold from your paycheck

c)

the 3 major credit bureaus know how many dependents you have

d)

you know how much you paid in taxes last year

5.

Jess is 21, in college, & has a job that provides 65% of her support. Is she a dependent?

a)

Yes

b)

No

6.

What item would you DEFINITELY see on a paystub?

a)

Retirement

b)

Healthcare

c)

Gross Pay

d)

Your occupation/role

7.

Which of the following is FALSE about the W-2 form? (hint: choose 2 correct answers)

a)

The W-2 is sent out in April of every year

b)

It lets you know how much you earned last year

c)

It lets you know how much was withheld from your paychecks

d)

You get 1 W-2 form every year, even if you had multiple jobs

8.

What do you need to file your 1040 form? (hint: choose 2 correct answers)

a)

Your W-2

b)

Your W-4

c)

Your prior year's tax return

d)

Social Security Number

9.

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

a)

infrastructure, defense, science

b)

education, defense, food/agriculture

c)

health, military, interest on debt

d)

military, education, science

10.

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 when you file your annual tax return

d)

it is how much you earn and includes salary, bonus and commissions

11.

Why is it important to be extremely careful when completing your 1040 form?

a)

it determines whether you owe additional taxes or are entitled to receive a refund from the government

b)

making even one mistake on your federal taxes can result in your being convicted of a crime

c)

completing the 1040 form incorrectly will mean the wrong amount of taxes will be withheld form your paychecks going forward

d)

mistakes on your 1040 form make you ineligible for employment during the next year

12.

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 and state income taxes?

a)

W-2

b)

1099

c)

W-4

d)

I-9

13.

What 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.

a)

I-9

b)

1099

c)

1040

d)

W-4

14.

What 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.

a)

1040

b)

I-9

c)

W-4

d)

W-2

15.

Federal Contribution Insurance Act (FICA) are withheld from your paycheck and sent to the government. These are used for (Two answers are to be selected)

a)

Social Security

b)

State

c)

Medicare

d)

Sale

16.

A fixed amount all people are allowed to deduct from their adjusted gross income to reduce their tax liability

a)

Standard Deduction

b)

Itemized Deduction

17.

Which of the following reduces your tax liability dollar for dollar?

a)

Standard Deduction

b)

Tax Credit

c)

Adjusted Gross Income

d)

Pre-tax Contributions

18.

The more money you earn the more taxes you pay is true of what kind of tax system?

a)

Federal Insurance Contribution Act

b)

Progressive Tax

c)

Regressive Tax

d)

Flat Tax

19.

Gross Pay is ___________ taxes and deductions; Net Pay is ___________ taxes and deductions.

a)

BEFORE; AFTER

b)

AFTER; BEFORE

20.

A system in which the tax burden is put on the wealthy.

a)

Federal Insurance Contributions Act

b)

Progressive tax system

c)

Regressive tax system

d)

Flat tax system

21.

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

a)

infrastructure, defense, science

b)

education, defense, food/agriculture

c)

health, military, interest on debt

d)

military, education, science

22.

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 when you file your annual tax return

d)

it is how much you earn and includes salary, bonus and commissions

23.

Why is it important to be extremely careful when completing your 1040 form?

a)

it determines whether you owe additional taxes or are entitled to receive a refund from the government

b)

making even one mistake on your federal taxes can result in your being convicted of a crime

c)

completing the 1040 form incorrectly will mean the wrong amount of taxes will be withheld form your paychecks going forward

d)

mistakes on your 1040 form make you ineligible for employment during the next year

24.

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 and state income taxes?

a)

W-2

b)

1099

c)

W-4

d)

I-9

25.

What 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.

a)

I-9

b)

1099

c)

1040

d)

W-4

26.

What 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.

a)

1040

b)

I-9

c)

W-4

d)

W-2

27.

Federal Contribution Insurance Act (FICA) are withheld from your paycheck and sent to the government. These are used for (Two answers are to be selected)

a)

Social Security

b)

State

c)

Medicare

d)

Sale

28.

A fixed amount all people are allowed to deduct from their adjusted gross income to reduce their tax liability

a)

Standard Deduction

b)

Itemized Deduction

29.

The more money you earn the more taxes you pay is true of what kind of tax system?

a)

Federal Insurance Contribution Act

b)

Progressive Tax

c)

Regressive Tax

d)

Flat Tax

30.

Gross Pay is ___________ taxes and deductions; Net Pay is ___________ taxes and deductions.

a)

BEFORE; AFTER

b)

AFTER; BEFORE