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Personal Finance - Taxes

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

What are the two components of Payroll Taxes?

a)

Social Security and Medicare

b)

Social Security and Medicaid

c)

Medicare and Medicaid

d)

Payroll and Sales Taxes

2.

Taxes deducted from your paycheck can include all of the following except

a)

state income tax

b)

Sales tax

c)

FICA

d)

Federal Income Tax

3.

Gross Income includes all of the following except

a)

tips

b)

child support payments received

c)

wages

d)

game show winnings

4.

Which of the following is FALSE about the W-2 form? (hint: choose 2 correct answers)

a)

The W-2 is sent out by December 31st of every year

b)

It lets you know how much you earned last year

c)

It lets you know how much was withheld from your paychecks

d)

You get 1 W-2 form every year, even if you had multiple jobs

5.

When you are ready to file for taxes you must have form

a)

W-2

b)

W-6

c)

WD40

d)

W-2484

6.
Which is bigger, gross pay or net pay?
a)
gross pay
b)
net pay
7.

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 federal and state income taxes?

a)

W-2

b)

1099

c)

W-4

d)

I-9

8.

How many months of expenses should be set aside for an emergency fund?

a)

3-6 months

b)

6-12 months

c)

12-18 months

d)

1-3 months

9.

A standard deduction is

a)

Income you receive for upholding good standards.

b)

Is a $1,000 taken off your tax bill to reduce your tax bill.

c)

A fixed amount all people are allowed to deduct from their AGI to reduce their tax liability.

d)

A specific expense or expenses that, under law, can be deducted from income to reduce the amount of income subject to income tax

10.

The purpose of deductions and exemptions is to reduce

a)

Your Adjusted Gross Income (AGI)

b)

Your Net Income

c)

Your Capital Gains

d)

Your Take Home Pay.

11.

A Tax Return is

a)

How much the government returns to you every year.

b)

A formal report to the IRS that contains all the information relative to a person's income taxes for a specific year.

c)

Is a musical group that sings about taxes.

d)

Is a government form used to complain about being over-taxed.

12.

An itemized deduction is

a)

A specific expense that, under tax law, can be deducted from income to reduce the amount of income subject to income.

b)

Items you want to give to the IRS.

c)

A waste of time. Just take the standard deduction.

d)

the same as a standard deduction.

13.

An example of Capital Gains is when

a)

You have an asset that has appreciated in value and you sell it for more than you paid for it.

b)

You sell the Capitol building

c)

You sell your stock for less than you paid for it.

d)

You gain weight after eating at the capital building.

14.

When dealing with taxes, we mainly are discussing what type of "Income"

a)

Gross Income

b)

Net Income

c)

Capital Gains Income

d)

Adjusted Gross Income

15.

The IRS is the

a)

Internal Reading Skill

b)

Implement Revenue Soon

c)

Implement Real Service

d)

Internal Revenue Service

16.

itemized deductions

a)

Items in your closet

b)

Fixed amount all people are allowed to deduct

c)

Specific expenses that can be deducted from income to reduce taxable income

d)

deductions that are in order.

17.

Another name for take-home pay is

a)

Gross Pay

b)

Salary

c)

Net Pay

d)

Income

18.

By law federal tax returns must be filed by what date?

a)

January 1

b)

December 31

c)

May 2nd

d)

April 15th