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Income taxes

Total questions: 40

Worksheet time: 24mins

Name
Class
Date
1.

Unearned income is reported on your tax form and taxes must be paid on them.

a)

True

b)

False

2.

Overtime is calculated at 1.5 times an employee's regular rate of pay.

a)

True

b)

False

3.

Employees who are paid biweekly are paid twice a week.

a)

True

b)

False

4.

Employees who are paid semi-monthly receive 26 paychecks per year.

a)

True

b)

False

5.

Tax deductions are calculated as a percentage of net pay.

a)

True

b)

False

6.

Federal law requires employers to pay a minimum wage.

a)

True

b)

False

7.

Social security is the tax that pays for medical insurance for older adults.

a)

True

b)

False

8.

Which form is used to report an employees earnings and taxes paid in a year?

a)

W-2

b)

W-4

c)

I-9

d)

1040

9.

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

10.

What is the deadline for filing personal income tax?

a)

March 15th

b)

April 15th

c)

June 15th

d)

December 15th

11.

In most circumstances, which of the following persons can be claimed as a dependent on a Form W-4? Mark all that apply.

a)

yourself

b)

your spouse

c)

your parents

d)

your children

e)

your pets

12.

What are the four most common taxes that come out of a person’s payroll check?

a)

Federal Income Tax

b)

State Income Tax

c)

City/Local Income Tax

d)

Medicare Tax

e)

Social Security

13.

money or benefits received from the government

a)

Transfer payment

b)

Tax refund

14.

amount returned by the government for overpaid taxes

a)

Transfer payment

b)

Tax refund

15.

pay based on number of hours worked

a)

salary

b)

wages

c)

earned income

d)

unearned income

16.

fixed rate of pay for week, month, or year

a)

wages

b)

commission

c)

tips

d)

salary

17.

withheld from an employee’s wages or salary

a)

disposable income

b)

payroll taxes

c)

workers compensation

d)

earned income

18.

money leftover to spend after paying taxes

a)

disposable income

b)

unearned income

c)

earned income

d)

gross income

19.

Income that has not been worked for such as interest, dividends, or gambling winnings

a)

disposable income

b)

unearned income

c)

earned income

d)

workers compensation

20.

Wages, salary and tips

a)

unearned income

b)

earned income

c)

disposable income

21.

Pays medical and disability benefits to employees injured on the job

a)

unearned income

b)

earned income

c)

workers compensation

d)

Medicare

22.

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

23.

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

a)

Yes

b)

No

24.

The more allowances you claim on your W-4...

a)

The more money is withheld from your paycheck

b)

The less money is withheld from your paycheck

c)

The # of allowances doesn't impact how much $ is withheld

d)

You claim allowances on a W-2, not the W-4

25.

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

26.

Jason is 16 and earned $1450 at his job last summer. Should he file a tax return?

a)

No, because he didn't earn enough.

b)

No, because you have to be 18 and older to file taxes.

c)

Yes, because he may get a refund.

d)

Yes. You must file taxes even if you didn't earn enough.

27.

Which of the following is NOT a way you can file your taxes?

a)

Through a tax professional

b)

Mailing in a paper tax return to the Federal government

c)

Using tax software like TurboTax

d)

Through your employer's HR department

28.

Net Pay

a)

A required payment for the support of a government.

b)

A principle that reflects the worth you place on an idea or action.

c)

A business owner who takes the risk of owning and operating a business.

d)

Your actual take home pay

e)

Your total wages from working

29.

Employees who are paid biweekly are paid twice a month.

a)

True

b)

False

30.
When is a W4 form filled out?
a)
When you file your taxes
b)
When you quit a job
c)
Right before you start a job
31.

Which of the following forms is a summary of what you made & what you paid? Hint: You DON'T fill it out, but it IS needed in order to file your taxes

a)

W2 Form

b)

W4 Form

c)

1040EZ

d)

I9 Form

32.

On the W-4 form, which would give you more money in your pocket per paycheck, a 0 or a 1?

a)

1 withholding

b)

0 withholding

c)

They are the same

33.
The length of time for which an employee’s wages are calculated
a)
payday
b)
pay period
c)
payroll
d)
direct deposit
34.
The formula for calculating overtime pay is
a)
total hours worked X  the employee’s rate of pay per hour.
b)
total hours worked over 40 hours in a week X the employee’s rate of pay per hour X 1.5
c)
total hours worked over 40 hours in a week X the employee’s rate of pay per hour X 1.25
d)
none of the above.
35.

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

36.

entitled to some or all of one's money in a retirement plan when leaving a company

a)

benefit

b)

insurance

c)

bonus

d)

vested

37.

factors on IRS Form W-4 that affect the amount of income tax withholding care called

a)

allowance

b)

dependent

c)

deduction

d)

none of these

38.

someone who is supported by a taxpayer's income

a)

allowance

b)

deduction

c)

dependent

d)

none of these

39.

on a tax return, an amount subtracted directly from the amount of tax owed

a)

itemized deduction

b)

standard deduction

c)

tax credit

d)

none of these

40.

If you are not required to file a income tax return for the year, why would you do it anyway?

a)

to make sure the IRS does not audit you

b)

to see if you would get a refund

c)

for fun

d)

I wouldn't