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PACE Tax Quiz review

Total questions: 34

Worksheet time: 2hrs 32mins

Name
Class
Date
1.

The W-4 form lets...

a)

the government know how much you paid in taxes last year

b)

your employer know how much to withhold from your paycheck

c)

the 3 major credit bureaus know how many dependents you have

d)

you know how much you paid in taxes last year

2.

By claiming "exempt" on the W-4 form...

a)

You are paying all income taxes upfront at the START of the year.

b)

You are requesting an extension to file your taxes

c)

You will NOT have income taxes withheld from your paycheck.

d)

You are paying all income taxes at the END of the calendar year.

3.

When you receive a new job, you are mandated to file a

a)

Complaint

b)

Divorce

c)

W-4

d)

W-2

4.
Also known as take home pay, this is the amount left after all payroll deductions have been taken from the gross income
a)
gross pay
b)
withholdings
c)
net pay
d)
real pay
5.
Which is bigger, gross pay or net pay?
a)
gross pay
b)
net pay
6.

If you claim "zero" on your W-4, what will be the most likely outcome?

(CHOOSE TWO ANSWERS)

a)

More money will be taken out of your paycheck

b)

Less money will be taken out of your paycheck

c)

You will most likely get a refund

d)

You will most likely have to pay taxes at the end of the year

7.

If you claim "three" on your W-4, what will be the most likely outcome?

(CHOOSE TWO ANSWERS)

a)

More money will be taken out of your paycheck

b)

Less money will be taken out of your paycheck

c)

You will most likely get a refund

d)

You will most likely have to pay taxes at the end of the year

8.

Assume that Maxwell and his spouse anticipate earning around $110,000 in combined income this year. Given how he’s completed this W-4 form, how many children under the age of 17 does Maxwell have?

a)

1

b)

2

c)

3

d)

4

9.

How much EXTRA money is Maxwell having held from each paycheck? 

a)

$0

b)

$10

c)

$50

d)

Cannot tell from this form

10.

When Maxwell completes this W-4, who should he submit it to? 

a)

His employer

b)

The IRS

c)

No one - he keeps it for his records

d)

His spouse

11.

When is the deadline to receive your W-2 Wage and Tax Statement?

a)

January 30th

b)

January 31st

c)

April 15th

d)

April 1st

12.

The entire amount of your income or paycheck before any deductions

a)

Net Pay

b)

Gross pay

c)

Income Tax

d)

Social Security Tax

13.
What is Income Tax?
a)
Tax on Earned Income
b)
Tax on Unearned Income
c)
Tax on Earned and Unearned Income
d)
Taxes on the Wages you earn from your Employer
14.
Someone who relies on a taxpayer for financial support, such as a child or a nonworking adult.
a)
dependent
b)
FICA
c)
W-2 form
d)
W-4 form
e)
IRS
15.
money that is subtracted from your gross pay for things like taxes, social security, and insurance
a)
regular pay
b)
deductions
c)
overtime pay
16.

The amount you see on your pay check is your

a)

gross pay

b)

deductions

c)

net pay

d)

status

17.

What is the average rate everyone's wages are taxed for FICA - Social Security?

a)

2%

b)

5%

c)

15%

d)

6.2%

18.

Hope's contribution to her RETIREMENT plan...

a)

is a post-tax contribution on which she pays federal income taxes

b)

is pre-tax and therefore not included in federal income taxes

c)

Is a contribution to her Social Security

d)

is taxed at a rate of 15%

19.

Which of the following jobs is considered a household employee?

a)

Babysitter

b)

Selling lemonade

c)

Designing websites

d)

Gardening neighbor's yard

20.

Stella is 16 years old. She earned $3,500 this year at a local ice cream shop, and another $3,500 in cash babysitting her neighbor’s son. Should she file a tax return?

a)

No because she has earned less than is required by the law.

b)

Yes because everyone has to file a tax return.

c)

Yes so she can receive any taxes withheld that she might get back.

d)

No because she is under 18.

21.

What is the benefit of claiming 0 or 1 withholding allowances on the W-4 form you receive when you start your job?

a)

It will help you with your social security.

b)

If you earn more than the exemption, it will keep you from owing as much tax.

c)

It is required by law.

d)

There is no benefit.

22.

What two taxes will you NOT receive a refund for, even if you file a tax return?

a)

Social security tax

b)

FICA

c)

State tax

d)

Medicare tax

23.

You do not need to pay taxes if you earn income in cash.

a)

True

b)

False

24.

All of the following people can be claimed as a dependent for tax purposes EXCEPT…

a)

A 23 year old college student whose parents pay all of their expenses

b)

A 17 year old high school student with a part-time job whose parents pay for all of their expenses

c)

A 20 year old college student with a paid internship who pays for all of their own expenses

d)

A 25 year old cousin with no job who has lived in your parent/guardian’s house for the last year

25.

You are required to file a tax return in all of the following scenarios EXCEPT…

a)

You made $25,000 working a full-time job

b)

You made $3,000 from investments in the stock market

c)

You were self-employed and made $2,500

d)

You made $9,000 working a part-time job

26.

Income earned from employment or self employment

a)

Wage

b)

Earned Income

c)

Salary

d)

Piecework

27.

Davis is a 17 year old high school student, he lives with his parents. David earned $4,500 at his part-time job. Is this person legally required to file a tax return?

a)

Yes, this person earned income is more than $12,000

b)

No, this person earned income is less than $12,000

c)

Yes, this person unearned income is more than $1,050

d)

No, this person unearned income is less than $1,050

28.

Pauline is a 17 year old high school student who lives with her parents. Pauline earned $500 in interest income from her savings account. Is this person legally required to file a tax return?

a)

Yes, this person earned income is more than $12,000

b)

No, this person earned income is less than $12,000

c)

Yes, this person unearned income is more than $1,050

d)

No, this person unearned income is less than $1,050

e)

Yes, this person self-employment income is more than $400

29.

Rocio is a 17 year old high school student who lives with her parents. Rocio earned $1,250 from dog walking and pet sitting. Is this person legally required to file a tax return?

a)

Yes, this person earned income is more than $12,000

b)

No, this person earned income is less than $12,000

c)

Yes, this person unearned income is more than $1,050

d)

No, this person self-employment income is less than $400

e)

Yes, this person self-employment income is more than $400

30.

Davis is a 17 year old high school student, he lives with his parents. David earned $4,500 at his part-time job. Can this person be claimed as a dependent?

a)

Yes, this person is under 24 and a student.

b)

No, this person is over 18 and not a student.

31.

Darnell is 22 years old, works full-time, and still lives at his parents house. He gives money to his parents to help with house expenses. He earned $31,500 from his job. Can this person be claimed as a dependent?

a)

Yes, this person is under 24 and a student.

b)

No, this person is over 19 and not a student

32.
Free from federal tax withholding
a)
allowance
b)
exempt
c)
withholding
d)
standard deduction
33.

What is this form?

a)

W-2

b)

W-4

c)

Form 1040

34.

Today is the first day of your new job. Place these items in the correct order that they will be completed or received.

a)

W-4

b)

Pay Stub

c)

W-2

d)

File Income tax forms

1)
2)
3)
4)