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WorksheetsUnit Assessment - Taxes (SC-8.0)
Total questions: 30
Worksheet time: 30mins
Mandatory government spending includes which of the following?
Infrastructure and science
Social Security and Medicare
Healthcare and military
Education and agriculture
What does the term "withholding" mean in reference to your paycheck?
The amount of your paycheck that you are NOT being taxed on
How much you are going to owe the government when you file your annual tax return
How much you earn and includes salary, bonus and commissions
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
When do you start paying income taxes?
When you turn 18
When you get a full-time job (part-time does not count)
When you make more than the minimum income requirement
When you are notified by the IRS that you are required to pay federal income taxes
Why is it important to be extremely careful when completing your 1040 form?
Making a mistake will disqualify you from receiving future refunds
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the gov't
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
Mistakes on your 1040 form make you ineligible for employment during the next year
If your only income is salary paid by your employer, 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
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?
W-4
W-2
I-9
1040
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
Social Security
Medicare
401(k) contribution
Federal income taxes
When determining whether you NEED 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?
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?
$120
$500
$600
$700
Which of the statements about this W-4 is TRUE?
Mr. Khan is filing as married filing jointly
Mr. Khan is requesting for an additional $50 to be withheld from his paycheck
Mr. Khan submitted this W-4 two days after he started working at Little Company Inc.
Mr. Khan’s paycheck will have less money withheld from his paycheck since he is claiming a dependent
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?
Determine how much tax to withhold from her paychecks based on W-4 information
Complete a W-4 form
Send withholding amounts to the federal government
Complete a W-2 form
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
1099
1040
W-4
Which of the following statements about this W-2 form is true?
Avia Consulting will use this W-2 to file their 1040 form
Lily earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages
Lily paid state income taxes of $1,189.90
Lily works in the same city that Avia Consulting is based in
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
withholding
direct deposit
deduction
refund
What was the net (or take-home) pay for this employee for this pay period?
$335.10
$400.00
$2,680.80
$3,200
How much did this person pay towards Medicare in this pay period only?
$5.80
$24.80
$44.50
$52.20
How frequently is this employee paid?
Daily
Every other week
Weekly
Monthly
Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?
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
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…
Jessica is required to file an income tax return
Jessica should expect to receive a W-2 in January
Jessica is required to pay a 15.3% self-employment tax
Jessica can file her own tax return even though her parents are claiming her as a dependent
Which of the following describes what a "dependent" is for tax purposes?
A child or adult that you support financially
Someone who is temporarily disabled
An adult who financially supports you
Someone who is a full-time student under the age of 30
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will receive a refund
They will owe a payment to the IRS
They will be audited
They will be charged with tax evasion
Which of the following statements about the W-2 form is TRUE?
A W-2 lists all the money you earned in cash over the last year
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
You need a separate W-2 form from EACH of your employers in order to file your taxes
The W-2 includes information about the interest you earned from your investments
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?
Akshay will need to file only a federal tax return
Akshay will need to file a federal tax return and a state tax return for Massachusetts
Akshay will need to file a federal tax return and a state tax return for both Massachusetts and California
Akshay will need to file a federal tax return this year and file state returns the following year
All of the following people would be required to file a tax return EXCEPT…
Janet, who earned $28,200 but was paid entirely in cash
Max, whose total income from three separate part-time jobs was $9,500
Isaiah, who owns his own business and generated an income of $7,000
Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips
Marc 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 Marc 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 Marc $75 or more for not filing taxes
Nothing will happen, but Marc will miss out on his potential refund
Let's assume that you are explaining difference between discretionary and mandatory government spending. Select each statement that is TRUE.
Mandatory spending is used to fund programs like Social Security and Medicare. This money comes from a tax-funded trust fund and is a fixed amount that can’t be spent elsewhere.
Discretionary spending can only fund specific categories (like education and national defense). The amount remains constant from year to year.
Mandatory spending comes from a tax-funded trust fund and is a variable (not fixed) amount that can be spent anywhere. It is used to fund programs education and national defense.
Discretionary spending can fund a number of different categories (like education and national defense) that is also funded through federal income taxes but the amount allocated to those categories can change from year to year.
What is the deadline to file your tax return?
The deadline is December 31st of the following year (with the exception of an extension due to holidays, etc.).
The deadline is April 15th of the following year (with the exception of an extension due to holidays, etc.).
The deadline is October 15th of the following year (with the exception of an extension due to holidays, etc.).
What can you do if you know you will miss the deadline to file your tax return?
You can apply for an extension to file your taxes by October 15 of the following year for which you’re filing taxes.
You can skip this year and double-up the following year.
You must go to court to avoid imprisonment for missing the deadline.
Jill is 16 years old and worked at her local grocery store over the summer earning $5,600. Is Jill legally required to file a tax return?
Yes, she earned money; therefore, she must file a tax return (even if she did not meet the minimum income requirement).
No, Jill is not legally required to file a tax return because she did not meet the minimum income requirement to file. However, she should file a tax return because she is likely to get a refund.
Mark each of the things the federal government spends your tax dollars on that you benefit from.
Clean air and water and National Parks
Local police departments
Maintenance of streets and roads
Public libraries
Pet adoption fees
