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Unit 4-Taxes Review

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The Federal government spends the most amount of tax money on...

a)

education

b)

science

c)

transportation

d)

health

2.

All of the following are factors that impact the amount someone may pay in taxes EXCEPT...

a)

income

b)

state

c)

marital status

d)

political party

3.

Which of the following is the largest source of income for the Federal government?

a)

payroll tax

b)

corporate tax

c)

property tax

d)

income tax

4.

Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20?

a)

$40.00

b)

$284.79

c)

$315.21

d)

$600.00

5.

What was the TOTAL amount deducted from Hope's latest paycheck?

a)

$600.00

b)

$315.21

c)

$284.79

d)

$90.00

6.

Why should you complete a W-4 form any time you start a new job or change your tax status?

a)

You need a copy of your W-4 to file your tax return annually

b)

Your W-4 determines how much Federal income tax money your employer should withhold

c)

Your W-4 determines your total tax bill at the end of the year

d)

Completing a W-4 will guarantee you receive a large tax refund

7.

Which of the statements about the current U.S. tax system is TRUE?

a)

Your friend tells you his marginal tax rate is 35%. That means that he pays 35% on all of his income.

b)

Everyone in the US who makes more than the minimum income requirement pays one flat tax rate.

c)

Our current system is described as a progressive system because it imposes higher rates on those who earn more.

d)

Our current system is described as a regressive system because it imposes higher rates on those who earn less.

8.

Which person should expect to receive a W-2 form from their employer by January 31, 2021?

a)

Nancy, who has sold handcrafted vases online for the past 5 years

b)

Henry, whose first job started on January 10, 2021

c)

Sally, who did an unpaid internship in summer 2020 for a local newspaper

d)

Sue, who has worked for the same department store for the last 15 years

9.

All of the following information should appear on your W-2 form EXCEPT...

a)

Your name, address, and employer information

b)

Your interest earned on savings and investments

c)

Your wages, tips, and compensation from that particular employer

d)

The amount you paid during the last year for Medicare and Social Security

10.

What were Lily’s gross wages for this period?

a)

$1,722.44

b)

$2,480.17

c)

$14,450

d)

$16,172.44