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Taxes Personal Finance Review

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

If your only income is salary paid by your employer, which of these statements about filing your taxes is true?

a)

You need to file your tax return by the end of the calendar year (typically December 31st)

b)

If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

c)

You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date

d)

You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money

2.

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…

a)

How much income did you earn this year?

b)

What type of income did you earn this year?

c)

What state do you live in?

d)

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

3.

Juanita has a part-time job that pays $12/hour and 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?

a)

$120

b)

$500

c)

$600

d)

$700

4.

Which of the statements about this W-4 is TRUE?

a)

Mr. Khan is filing as married filing jointly

b)

Mr. Khan is requesting for an additional $50 to be withheld from his paycheck

c)

Mr. Khan submitted this W-4 two days after he started working at Little Company Inc.

d)

Mr. Khan’s paycheck will have less money withheld from his paycheck since he is claiming a dependent

5.

Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for?

a)

Determine how much tax to withhold from her paychecks based on W-4 information

b)

Complete a W-4 form

c)

Send withholding amounts to the federal government

d)

Complete a W-2 form

6.

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

a)

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

b)

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

c)

Lily paid state income taxes of $1,189.90

d)

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

7.

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

a)

$495.00

b)

$744.10

c)

$2,744.10

d)

$3,600

8.

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

a)

$5.80

b)

$24.80

c)

$44.50

d)

$52.20

9.

How frequently is this employee paid?

a)

Daily

b)

Every other week

c)

Weekly

d)

Monthly

10.

Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?

a)

Filing your taxes using a website is always free of charge

b)

You are guaranteed a higher refund than if you were to use a paper form or hire a professional

c)

If you owe money to the IRS, you receive a discount if you e-file use a tax filing website

d)

You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online

11.

Jessica is 16 years old and earned $1,100 through her photography side gig. Her parents can claim her as a dependent on their tax return. All of the following statements are true EXCEPT…  

a)

Jessica is required to file an income tax return

b)

Jessica should expect to receive a W-2 in January

c)

Jessica is required to pay a 15.3% self-employment tax

d)

Jessica can file her own tax return even though her parents are claiming her as a dependent

12.

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

13.

All of the following people would be required to file a tax return EXCEPT…

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 $7,000

d)

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

14.

Akshay worked at a cafe while he was a college senior in Boston, Massachusetts. After graduating in June, he moved back to his home in California and started a full-time job in September. Which of the following statements is true?

a)

Akshay will need to file only a federal tax return

b)

Akshay will need to file a federal tax return and a state tax return for Massachusetts

c)

Akshay will need to file a federal tax return and a state tax return for both Massachusetts and California

d)

Akshay will need to file a federal tax return this year and file state returns the following year