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Tax Unit Review

Total questions: 43

Worksheet time: 19mins

Name
Class
Date
1.

For each of the taxes listed, circle who contributes to the tax for the employee. Federal Income Tax:

a)

Employer

b)

Employee

c)

Both Employer & Employee

2.

For each of the taxes listed, circle who contributes to the tax for the employee. Social Security:

a)

Employer

b)

Employee

c)

Both Employer & Employee

3.

For each of the taxes listed, circle who contributes to the tax for the employee. State Income Tax:

a)

Employer

b)

Employee

c)

Both Employer & Employee

4.

For each of the taxes listed, circle who contributes to the tax for the employee. FUTA:

a)

Employer

b)

Employee

c)

Both Employer & Employee

5.

For each of the taxes listed, circle who contributes to the tax for the employee. Medicare:

a)

Employer

b)

Employee

c)

Both Employer & Employee

6.

For each of the taxes listed, circle who contributes to the tax for the employee. SUTA:

a)

Employer

b)

Employee

c)

Both Employer & Employee

7.

The common misconception of marginal tax rates is ___. (Select all that apply)

a)

One is taxed more than they should.

b)

One is taxed on fully at the top bracket your income falls into.

c)

One is taxed on their full earnings.

d)

One is taxed as much as someone making a lot of money.

8.

The W-2 must be postmarked by the employer by (a)   .

9.

The tax rate for social security is (a)   .

10.

The tax rate for medicare is (a)   .

11.

IRS stands for ___.

4 lines
12.

Income taxes are due (a)   .

13.

Tips are subject to tax?

a)

True

b)

False

14.

One does not need any items to complete their income taxes.

a)

True

b)

False

15.

If I make less than the standard deduction I don’t legally have to file taxes.

a)

True

b)

False

16.

If I file exempt on my W-4 I will have federal income tax withheld.

a)

True

b)

False

17.

If I have more than one job I will receive one W-2 from my primary employer.

a)

True

b)

False

18.

The percentage at which taxes are paid on each dollar of income

a)

Tax Rate

b)

Regressive Tax

c)

Progressive Tax

d)

Marginal Tax Rate

19.
  1. A tax system that uses tax brackets to collect a larger percentage from the income of high-income earners than it does from low-income earners

a)

Regressive Tax

b)

Progressive Tax

c)

Progressive Tax

d)

Effective Tax Rate

20.

Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay

a)

Salary

b)

Net Income/Wages

c)

Gross Income/Wages

d)

Payroll Deduction

21.
  1. Taken from the employees payroll before taxes are calculated & withheld.

a)

Gross Wages

b)

Tax Deductions

c)

Tax Credit

d)

Pretax Deductions

22.

Federal unemployment

a)

FUTA

b)

SUTA

c)

Federal Income

d)

State Income

23.

The amount of income that is used to calculate an individual's or a company's income tax due

a)

Tax Bracket

b)

Tax Rate

c)

Taxable Income

d)

Tax Credit

24.
  1. This tax is made up of both medicare and social security taxes

a)

Marginal Tax

b)

Payroll Tax

c)

Income Tax

d)

Effective Tax

25.
  1. A federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare

a)

SUTA

b)

FICA

c)

FUTA

d)

Earned Income

26.

The actual percentage of your taxable income that you end up paying in taxes.

a)

Effective Tax

b)

Marginal Tax

c)

Progressive Tax

d)

Proportional Tax

27.

A court ordered mandatory payroll deduction taken by your employer

a)

Deductions

b)

Payroll Tax

c)

Garnishment

d)

Income Tax

28.

A range of income amounts that are taxed at a particular rate

a)

Tax Bracket

b)

Tax Rate

c)

Tax Credit

d)

Gross Wages

29.

This tax is made up of federal and state taxes

a)

FICA

b)

Income tax

c)

Payroll Tax

d)

Tax return

30.

State unemployment

a)

Social Security

b)

SUTA

c)

FUTA

d)

Medicare

31.
  1. A standardized dollar amount that reduces your taxable income, specifically for individuals who do not receive additional benefit by itemizing their deductions into medical expenses, donations, etc.

a)

Pre-tax deduction

b)

Tax Deduction

c)

Tax Credit

d)

Standard Deduction

32.

an income tax system that levies the same percentage tax to everyone regardless of income.

a)

Regressive Tax

b)

Proportional Tax

c)

Progressive Tax

d)

Income Tax

33.

a type of tax that is assessed regardless of income, in which low- and high-income earners pay the same dollar amount

a)

Regressive Tax

b)

Proportional Tax

c)

Progressive Tax

d)

Income Tax

34.

An annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers

a)
W-9 form
b)
W-4 form
c)
1099 form
d)

Tax Return

35.

Income received from sources other than employment

a)
Secondary income
b)
Unearned income
c)
Passive income
d)
Nonwage income
36.

Any income (wages/salary) that is generated by working

a)
Passive income
b)
Unearned income
c)
Investment income
d)
Earned income
37.

The highest tax bracket that your taxable income falls in.

a)

Marginal Tax Rate

b)
The middle tax bracket that your taxable income falls in.
c)
The average tax bracket that your taxable income falls in.
d)

Effective Tax Rate

38.
  1. An amount subtracted directly from the tax owed

a)

Tax Credit

b)

Tax Deduction

c)

Pre-tax deduction

d)

Tax Rate

39.
  1. Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes

a)
Independent
b)
Self-sufficient
c)
Dependent
d)
Autonomous
40.

Total earnings before payroll taxes and other deductions have been taken out

a)
Net income
b)
Take-home pay
c)
After-tax income
d)
Gross income
41.

An amount that can be subtracted from person's tax liability that lowers their taxable income

a)
Tax deduction
b)
Tax refund
c)
Tax exemption
d)
Tax credit
42.

A government-run insurance program that provides healthcare assistance to elderly and disabled Americans

a)
Obamacare
b)
Social Security
c)
Medicaid
d)
Medicare
43.

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals

a)
Medicaid
b)
Social Security
c)
Medicare
d)
Welfare