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Taxes

Total questions: 25

Worksheet time: 14mins

Name
Class
Date
1.

IRS stands for

a)

Internal Revenge Service

b)

International Revenue System

c)

Internal Revenue Service

d)

Inspection Ravioli Sauce

2.

Money being taxed comes from

a)

Net Pay

b)

Gross Pay

c)

Take Home Pay

d)

Pay Day...the candybar

3.

The official date for when taxes are due

a)

January 15

b)

February 15

c)

March 15

d)

April 15

4.

When you receive a new job, you are mandated to file a

a)

Complaint

b)

Divorce

c)

W-4

d)

W-2

5.

When you are ready to file for taxes you must have form

a)

W-2

b)

W-6

c)

WD40

d)

W-2484

6.

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

7.

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

8.

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

9.

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

10.

When determining whether you need to file a federal tax return, each of these questions matter EXCEPT

a)

what state do you live in?

b)

how much income did you earn this year?

c)

what type of income did you earn this year?

d)

are you claimed as a dependent on anyone else's tax return?

11.

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

12.
a tax in which the tax rate increases as the taxable amount increases
a)
progressive
b)
regressive
c)
flat
d)
proportional
13.
Federal Income tax is a _______tax
a)
proportional
b)
flat
c)
regressive
d)
progressive
14.
Sales tax is a ______ tax
a)
regressive
b)
progressive
15.

Which of the following are ways you can file your taxes?

a)

Online Tax Prep

b)

By phone

c)

On your own (mail in)

d)

With a tax professional

16.

All taxable income you receive, including wages, salaries, and tips. What you earn BEFORE taxes are taken out.

a)

Filing Income

b)

Net Income

c)

Standard Income

d)

Gross Income

17.

Becky made $7,500 last year. She received her w2 in the mail. Does she have to file taxes? If she doesn't have to, why might she want to file anyways?

a)

Becky made over the minimum amount so she must file taxes for the previous year.

b)

Becky does not have to file, but may want to because she could be owed a refund.

c)

Becky does not have to file, but may want to in case she owes the IRS money.

d)

Becky has to file taxes. Everyone has to file regardless of their income amount.

18.

By what date must employers provide, or place in the mail, a wage earner's W-2 statement?

a)

January 1

b)

January 31

c)

April 1

d)

April 15

19.

Income received from sources other than employment.

a)

unearned income

b)

earned income

c)

payroll tax

d)

income tax

20.

Money earned from working for pay.

a)

earned income

b)

unearned income

c)

payroll tax

d)

gross income.

21.

If a teen files a tax return, can the parent still claim him/her as a dependent?

a)

Yes. All teens are dependents until they are 18 years old

b)

No. If a teen files a tax return, he/she cannot be claimed

c)

Yes, as long as the teen meets the dependency requirements

d)

Yes, but the parent has to add the teen's income to theirs

22.
FICA taxes are
a)
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare
b)
U.S. federal payroll taxes imposed on employees only to fund Social Security and Medicare.
c)
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security.
d)
U.S. federal payroll taxes imposed on employers only to fund Social Security and Medicare
23.
Why is Form W-4 completed, and when should a new W-4 be completed? 
a)
It is completed so employers can withhold the correct federal income tax from paychecks.  A new W-4 should be completed each year and when personal / financial situations change.
b)
It is completed only if you are not exempt from taxes due to being a full time student.
c)
It is completed only if you claim the head of household filing status on your return by being unmarried and paying more than 50% of the costs of keeping up a home for yourself and dependents.
d)
It should be completed if you are not a Nonresident Alien. 
24.

Which is the BIGGEST tax that is taken out of your paycheck?

a)

State Income Tax

b)

Federal Income Tax

c)

Social Security Tax

d)

Health Insurance

25.

When you file your taxes, you will use a ________ form.

a)

Timesheet

b)

W2

c)

1040