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Taxes Unit Test

Total questions: 14

Worksheet time: 10mins

Name
Class
Date
1.

When do you start paying income taxes?

a)

When you turn 18

b)

When you make more than the minimum income requirement

c)

When you are notified by the IRS that you are required to pay federal income taxes

2.

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...

a)

What type of income did you earn this year?

b)

What state do you live in?

c)

Are you claimed as a dependent on anyone else's tax return?

3.

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?

a)

Determine how much tax to withhold from her paychecks based on W-4 information

b)

Complete a W-4 form

c)

Send withholding amounts to the federal government

d)

Complete a W-2 form

4.

If you overpaid your taxes and the government owes you money, that is called a

(a)  

5.

Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?

a)

Filing your taxes using a website is always free of charge

b)

You are guaranteed a higher refund than if you were to use a paper form or hire a professional

c)

If you owe money to the IRS, you receive a discount if you e-file use a tax filing website

d)

You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online

6.

Which of the following describes what a "dependent" is for tax purposes?

a)

A child or adult that you support financially

b)

Someone who is temporarily disabled

c)

An adult who financially supports you

d)

Someone who is a full-time student under the age of 30

7.

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?

a)

They will receive a refund

b)

They will owe a payment to the IRS

c)

They will be audited

d)

They will be charged with tax evasion

8.

Which of the following statements about the W-2 form is TRUE?

a)

A W-2 lists all the money you earned in cash over the last year

b)

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form

c)

You need a separate W-2 form from EACH of your employers in order to file your taxes

d)

The W-2 includes information about the interest you earned from your investments

9.

How much did this person pay towards Medicare in this pay period only?

(a)  

10.

What was the net (or take-home) pay for this employee for this pay period?

(a)  

11.

What was the YTD Net Pay?

(a)  

12.

All of the following people would be required to file a tax return EXCEPT...

a)

Max, whose total income from three separate part-time jobs was $9,500

b)

Isaiah, who owns his own business and generated an income of $7,000

c)

Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips

13.

Net pay is ...

a)

income before deductions

b)

income after deductions

c)

income you take home

d)

income with holdings

14.

Your income before taxes are withheld is your (a)   monthly income.