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Unit 7: Income and Taxes

Total questions: 49

Worksheet time: 27mins

Name
Class
Date
1.

Income from working

a)

Passive Income

b)

Portfolio Income

c)

Earned Income

d)

Investment

2.

Earnings paid to an employee based on an hourly rate. 

a)

Commission

b)

Salary

c)

Wages

d)

Deductions

3.

An employee's fixed agreed yearly income. 

a)

Commission

b)

Salary

c)

Wages

d)

Deductions

4.

Janet makes $78K a year as an entry-level engineer. What type of Earned Income is this?

a)

Commission

b)

Salary

c)

Wages

d)

Deductions

5.
Earnings of a salesperson based on the percentage of goods or services sold.
a)
Salary
b)
Wages
c)
Commission
d)
Deductions
6.
Total money you earn before taxes and other deductions.
a)
Salary
b)
Net income
c)
Gross income
d)
Wages
7.
The amount of money you actually receive after the deductions are taken from your gross income.
a)
Net income
b)
Deductions
c)
Wages
d)
Tax
8.

A deduction is

a)

gross income

b)

money added to your income

c)

net income

d)

money taken out of your income

9.

Gross income is:

a)

the total amount of money you earn

b)

the amount of money you receive after decuctions are subtracted

c)

the total amount of money you spend

d)

sales taxes on items you buy

10.

Louise earns $48,800 a year, how can much does she earn per month?

a)

$90

b)

$406

c)

$4066

d)

$938.46

11.

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

12.

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

a)

Social Security

b)

The Military

c)

Private School Education

d)

National Parks

13.

What item would you DEFINITELY see on a paystub?

a)

Retirement

b)

Healthcare

c)

Gross Pay

d)

Your occupation/role

14.

True or False: All wages, tips, and bonuses are taxable unless specifically excluded.

a)

True

b)

False

15.

Jason is 15 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 16 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.

16.

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

17.

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

18.

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

19.
Which tax form is used  to provide information about your previous year's pay and deductions from that year?
a)
W2
b)
W4
c)
1040A
d)
1099-INT
20.
Who is responsible for providing the W2 form?
a)
You
b)
Your Employer
c)
Your bank
d)
The IRS
21.

consumption tax imposed by the government on the sale of goods and services

a)

Sales tax

b)

Income tax

c)

luxury tax

22.

What form will your employer send you BEFORE January 31st that summarizes your income and taxes withheld

a)

1040

b)

W-4

c)

W-2

23.

What does line 1 represent?

a)

Gross income

b)

Taxes paid

c)

Net income

24.

The standard deduction for someone married and filing jointly is...

a)

$12,550

b)

$18,800

c)

$25,100

25.

Which line represent taxable income?

a)

12a

b)

15

c)

11

26.

You should look at your ___ to find how much taxes were withheld

a)

1040

b)

1099-INT

c)

W-2

27.
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
28.
Required charges of citizens by local, state, and federal governments are called:
a)
charges
b)
taxes
c)
fees
d)
paycheck deductions
29.
Helps provide retirement income for the elderly and pays disability benefits
a)
medicare
b)
social security
c)
state income tax
d)
federal income tax
30.
A health care program for the elderly and disabled
a)
social security
b)
medicare
c)
state income tax
d)
federal income tax
31.
Which is bigger, gross pay or net pay?
a)
gross pay
b)
net pay
32.
A plan of how much money is available and how it will be spent.
a)
budget
b)
profit
c)
inventory
d)
interest
33.

The goal of a budget is _________________.

a)

to spend more than you make

b)

to spend less than you make

34.

Rent and car insurance payments are both which type of expenses?

a)

fixed costs that are needs

b)

fixed costs that are wants

c)

variable costs that are needs

d)

variable costs that are wants

35.

Cory's budget shows a problem. His weekly expenses average $10 more than his earnings. Coryworks 5 days a week and every day on his way to work, he spends $2.50 on hot chocolate. Will cutting out the hot chocolate help Ellis balance his budget?

a)

Yes, and he will have some money left ove

b)

Yes, the amount he saves will balance his budget exactly.

c)

No, Ellis will have to find other places to cut.

36.

What is A on the check?

a)

check number

b)

date check was written

c)

Name and address of the checking account holder

37.

What is B on the check?

a)

bank ID number

b)

date check was written

c)

check number

38.

What is C on the check?

a)

check number

b)

bank ID numbers

c)

amount of check in numbers

39.

What is E on the check?

a)

signature

b)

amount of check in numbers

c)

account number

40.

What is F on the check?

a)

signature

b)

purpose of the check

c)

account number

41.

What is G on the check?

a)

purpose of the check

b)

account number

c)

amount of check in words

42.

What is H on the check?

a)

amount of check in words

b)

company or person being paid

c)

purpose of the check

43.

What is I on the check?

a)

company or person being paid

b)

name and address of the account holder

c)

amount of check in words

44.

What is J on the check?

a)

company or person being paid

b)

name and address of the account holder

c)

date the check is written

45.

What type of tax system has a percentage of income paid in taxes that remains the same for all income levels?

a)

Progressive Tax

b)

Regressive Tax

c)

Proportional Tax

d)

None of the above

46.

Which tax system is characterized by a decreasing percentage of income paid in taxes as income increases?

a)

Progressive Tax

b)

Regressive Tax

c)

Proportional Tax

d)

None of the above

47.

In which tax system does the percentage of income paid in taxes increase as income increases?

a)

Progressive Tax

b)

Regressive Tax

c)

Proportional Tax

d)

None of the above

48.

According to the scenario, why does a regressive tax hurt the teacher more than Jeff Bezos?

a)

Because the teacher has a higher net worth

b)

Because Jeff Bezos has a higher income

c)

Because the teacher makes far less than Jeff Bezos

d)

Because the tax rate is higher for the teacher

49.

In which tax system do the rich bear the burden?

a)

Progressive

b)

Regressive

c)

Progressive

d)

Flat