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10.3 #3 do they need to file taxes?

Total questions: 20

Worksheet time: 3hrs 9mins

Name
Class
Date
1.

https://www.1040.com/assets/PDF/Dependents-TY21.pdf

Visit this resource. Who CAN be claimed as a dependent? Select all that apply.

a)
  • 21 years old

  • Lives in Minnesota where he attends college full-time

  • Parents live in Wisconsin and pay for over 50% of his expenses

b)
  • 20 years old

  • Lives in Maine with her parents and works full time

  • Parents don’t contribute anything to her expenses

c)

50 years old

Lives with parents

Gross income is $3,000

This person pays for half of house expenses

d)

22 years old

Lives with stepparent

Attends college full time
Parent pays for over 50% of expenses

2.
  1. https://www.1040.com/assets/PDF/Dependents-TY21.pdf

  2. TRUE or FALSE: Only U.S. citizens can be claimed as a dependent for tax purposes.

a)

True

b)

False, citizens of Canada and Mexico can be claimed

c)

False, citizens of US and Canada can be claimed

d)

False, citizens of England can be claimed

3.

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

6) Open the link to look at requirements for filing taxes. Which of the following people is/are legally required to file a tax return? Select all that apply.

a)

Person A, who can be claimed as a dependent and earned $850 last year but was not self-employed

b)

Person B, who can be claimed as a dependent and earned $14,200

c)

Person C, who cannot be claimed as a dependent and earned $1,500 last year but was not self-employed

d)

Person D, who cannot be claimed as a dependent and earned $15,000 last year

4.

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

The resource mentions that if the IRS owes you a refund, you won’t be penalized if you file your tax return late. How long do you have to file a return to get a refund if you did not have to file taxes?

a)

3 years

b)

1 year

c)

2 years

d)

3 months

e)

7 years

5.

https://docs.google.com/document/d/1TBZZxM67rtFtiVEeVAESo7W4QSBzcypYBNfz6SJ5e9I/edit?usp=sharing

https://docs.google.com/presentation/d/1iSaeKMkaNqjkblx29eDKdQ2JxWaBobT7fbJfI8rGo9o/edit#slide=id.g10553513dae_1_9

When filling out a W-4 form, in what situation would a teen want to claim exemption from federal income taxes being withheld from their paycheck?

a)

They could claim exemption if they don’t expect to earn more than the minimum income threshold to file a tax return.

b)

They won’t have to file a return and wait to get a refund.

c)

They could pay more taxes by claiming an exemption.

d)

They would be able to invest less by paying more taxes that the IRS says they owe.

6.
a)
  • 15.3%

b)
  1. self-employment tax (SECA) = FICA

c)
  1. self-employment tax (SECA) > FICA

d)

7.5%

e)
  1. self-employment tax (SECA) < FICA

8.
a)

Earned income

b)

Unearned income

c)

W-2 tax liability

d)

Active income

e)

Wages

9.
Categorize the following

wages

tips

salary

dividends

interest

rental income

active

passive

earned

unearned

Earned income
Unearned income
Earned or unearned: put in 401(k)
Earned or unearned: alimony
10.

https://www.hrblock.com/w-4-calculator/

If you are getting a new job after you graduate, you will need to fill out a W-4.

How do you figure out your tax withholding on a W-4? Use the calculator. Click Calculate my W-4. Click Single. Yes for head of household. 18. One. 40,000. Biweekly. 0. 0. No. None apply. No dependents. 0 for other credits. Yes for standard deduction. None apply.

What is the minimum you must withhold per pay period to get a refund of $5? Keep the hrblock window open.

a)

$28

b)

$10

c)

$200

d)

$300

e)

$32

11.

https://www.hrblock.com/w-4-calculator/

If you withhold an additional $200 per pay period (click and drag the green dot to $200), what is your estimated refund? Keep the hrblock window open.

a)

$3273

b)

$277

c)

$2237

d)

$3007

e)

$3203

12.

The minimum you need to withhold additionally is $28. Slide the minimum additional withholding per pay period down to $0. What happens to your refund?

a)

$200 refund

b)

owe $527

c)

$327 refund

d)

owe $5

e)

owe $28

13.

Review: Match the following

a)

I-9

1.
  • Proves you are eligible to work here

b)

W-2

2.

Income you got and taxes paid

c)

W-4

3.

Withholding form at start of work

d)

1040

4.

Federal tax form due in April

e)

1099

5.

Income but you were not an employee

14.
  1. When should you receive your W-2 form from your employer? 

a)
  1. Attached to every paystub

b)
  1. By January 1st

c)
  1. By January 31st

d)
  1. By April 15th 

15.

When are federal taxes due every year?

a)

April 15

b)

January 31

c)

January 1

d)

January 29

e)

April 1

16.
Which of the following is true about higher education?
a)
Education is not correlated with salary or unemployment rates.
b)
Everyone should go to college, even if they end up with significant student debt.
c)
When looking for a job, higher education is always more important than work experience.
d)
More education is associated with higher lifetime earning and lower unemployment.
17.
What is the current federal minimum wage for non-tipped workers?
a)
$10.00
b)
$7.25
c)
$15.00
d)
$8.50
18.
Maintaining a safe and professional digital footprint means...
a)
You share on a frequent basis, even if you don’t feel like it.
b)
You post something to your story but delete it after a few minutes.
c)
You create a spam account to post other content.
d)
You post responsibly, remembering what you post may affect you and other people.
19.
Each of the following is a common paycheck deduction EXCEPT...
a)
FICA taxes for Social Security and Medicare
b)
Federal income taxes
c)
Health Insurance Premium
d)
Direct deposit surcharge
20.
If the company you work for offers 401(k) matching, what does the matching refer to?
a)
For every dollar you invest in the plan, your employer also contributes money to the plan
b)
Your paychecks will be divided up evenly, with half going to your checking account and half going to your investment account
c)
Your employer will allow you to invest money at whatever bank you already have a checking account
d)
Your employer assigns you an onsite mentor to help support you with investment decisions