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WorksheetsTaxes Review
Total questions: 35
Worksheet time: 18mins
The W-4 form lets...
the government know how much you paid in taxes last year
your employer know how much to withhold from your paycheck
the 3 major credit bureaus know how many dependents you have
you know how much you paid in taxes last year
Jess is 21, in college, & has a job that provides 65% of her support. Is she a dependent?
Yes
No
By claiming "exempt" on the W-4 form...
You are paying all income taxes upfront at the START of the year.
You are requesting an extension to file your taxes
You will NOT have income taxes withheld from your paycheck.
You are paying all income taxes at the END of the calendar year.
Which of the following is TRUE about the W-2 form? (hint: choose 2 correct answers)
The W-2 is sent out in April of every year
It lets you know how much you earned last year
It lets you know how much was withheld from your paychecks
You get 1 W-2 form every year, even if you had multiple jobs
What do you need to file your 1040 form? (hint: choose 2 correct answers)
Your W-2
Your W-4
Your prior year's tax return
Social Security Number
Which of the following is NOT a way you can file your taxes?
Through a tax professional
Mailing in a paper tax return to the Federal government
Using tax software like TurboTax
Through your employer's Human Resources department
If a teen files a tax return, can the parent still claim them as a dependent?
No. If a teen files a tax return, they cannot be claimed
Yes, as long as the teen meets the dependency requirements
Yes, but the parent has to add the teen's income to theirs
When do you have to start paying income taxes?
When you turn 18
When you make more than the minimum income requirement
When you get a full-time job (part-time does not count)
When you are notified by the IRS that you are required to pay federal income taxes
Jessie did not meet the minimum income requirement to file a tax return. What is one reason for why she should file a tax return anyway?
She could potentially get a refund for the taxes that were withheld from her paycheck.
She still needs to report her income to the Federal government.
She can qualify for a higher tax refund next year.
She is still legally required to file a tax return even if she does not meet the minimum income requirement to owe taxes.
What is the key difference between Net Pay and Gross Pay?
Net pay is the total amount of money you get BEFORE taxes are deducted.
Gross pay is the total amount of money you get AFTER taxes are deducted.
Net pay is the total amount of money you get AFTER taxes are deducted.
All of the following people would be required to file a tax return EXCEPT…
Will, who earned $28,200 but was paid entirely in cash
Jill, whose total income from three separate part-time jobs was $9,000
Daniel, who owns his own business and generated an income of $7,000
Allie, who is a server and earned $14,500 in wages and $500 in tips
Federal Insurance Contributions Act (FICA) taxes are withheld from your paycheck and sent to the government. These are used for (hint: choose 2 correct answers)
Social Security
State
Medicare
Sales
What is meant by the term "withholding" when referring to your paycheck?
it is the amount of your paycheck that you are NOT being taxed on
it is how much is being taken out of your paycheck for things like taxes, health insurance, and retirement
it is how much you are going to owe the government when you file your annual tax return
it is how much you earn and includes salary, bonus and commissions
Why should you be careful when completing your 1040 form?
it determines whether you owe additional taxes or are entitled to receive a refund from the government
making a mistake will disqualify you from receiving future refunds
completing the 1040 form incorrectly will mean the wrong amount of taxes will be withheld form your paychecks going forward
mistakes on your 1040 form make you ineligible for employment during the next year
When you start a new job, which form do you need to complete that will determine how much money is withheld from your paycheck for federal income tax?
W-2
1099
W-4
I-9
What form am I? I am received when you start a job. You use me to prove that you are eligible to work in the US, and you must provide forms of identification when submitting me.
I-9
1099
1040
W-4
What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year.
1040
I-9
W-4
W-2
What does IRS stand for?
Intergalactic Reporting Station
Internal Revenue Service
International Rescue Supplies
Imaginary Radiation Seeker
What does it mean to claim a dependent on your taxes?
a dog or cat that lives rent free in your home.
a person who relies on someone else financially (i.e. children or the elderly)
a person who is completely independent but lives under your roof.
that you want to adopt the dependent you are claiming.
Which tax form do you use to file your federal tax return in April?
1040
I-9
W-2
W-4
Maria has a job that pays $14/hour and works about 60 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). Which of the following is closest to her monthly net pay?
$120
$500
$600
$700
If you receive a salary from your employer and that is your only income, which of these statements about filing your taxes is true?
You need to file your tax return by the end of the calendar year (typically December 31st)
If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return
You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
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
What paycheck withholding puts money into a retirement investment fund that you will manage?
Social Security
Medicare
401(k) contribution
Federal income taxes
To determine whether you are REQUIRED to file a federal tax return, each of these questions matters EXCEPT…
How much income did you earn this year?
What type of income did you earn this year?
What state do you live in?
Are you claimed as a dependent on anyone else's tax return?
After completing your 1040 form, if you overpaid your taxes and the government owes you money, what is that called?
withholding
direct deposit
deduction
refund
What is a benefit of using a tax filing website?
Filing your taxes using a website is always free of charge
You are guaranteed a higher refund than if you were to use a paper form or hire a professional
If you owe money to the IRS, you receive a discount if you e-file use a tax filing website
You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online
Alice is 17 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…
Alice is required to file an income tax return
Alice should expect to receive a W-2 in January
Alice is required to pay a 15.3% self-employment tax
Alice can file her own tax return even though her parents are claiming her as a dependent
If you fill out your W-4 in a way that does not withhold enough money to cover your tax obligation, what is the most likely outcome after you file your taxes?
You will receive a refund
You will owe a payment to the IRS
You will be audited
You will be charged with tax evasion
Collin worked at a restaurant while he was a college senior in Montana. After graduating in May, he moved back to his home in Arizona and started a job in August. Which of the following statements is true?
Collin will need to file only a federal tax return
Collin will need to file a federal tax return and a state tax return for Montana
Collin will need to file a federal tax return and a state tax return for both Montana and Arizona
Collin will need to file a federal tax return this year and file state returns the following year
Tommy is starting a fast food job during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. He earns $2000. Based on how he completed his W-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Tommy doesn't file taxes in April?
The IRS will refund his $200 directly to him
The IRS will refund his $200 to his parents
The IRS will fine Tommy $75 or more for not filing taxes
Nothing will happen, but Tommy will miss out on his potential refund
What is the main difference between a W-2 and a W-4 form?
A W-2 form is used to apply for jobs, while a W-4 form is used for tax purposes.
A W-2 form is for reporting annual wages and the amount of taxes withheld, while a W-4 form is used to determine the amount of taxes to withhold.
A W-4 form is used to report tips, while a W-2 form is used to report salaries.
There is no difference; they are used interchangeably.
When is the W-2 form typically issued by employers?
By January 31st of the following year.
At the end of each quarter.
By April 15th of the following year.
Upon the employee's request at any time.
