Worksheetsmlp0omk 1234c
Total questions: 20
Worksheet time: 15mins
Name
Class
Date
1.
1. Mandatory government spending includes which of the following?
a)
Infrastructure and science
b)
Social Security and Medicare
c)
Healthcare and military
d)
Education and agriculture
2.
2. What does the term "withholding" mean in reference to your paycheck?
a)
The amount of your paycheck that you are NOT being taxed on
b)
How much you are going to owe the government when you file your annual tax return
c)
How much you earn and includes salary, bonus and commissions
d)
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
3.
3. When do you start paying income taxes?
a)
When you turn 18
b)
When you get a full-time job (part-time does not count)
c)
When you make more than the minimum income requirement of $13,850
d)
When you are notified by the IRS that you are required to pay federal income taxes
4.
4. Why is it important to be extremely careful when completing your 1040 form?
a)
Making a mistake will disqualify you from receiving future refunds
b)
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
c)
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
d)
Mistakes on your 1040 form make you ineligible for employment during the next year
5.
5. If your only income is salary paid by your employer, which of these statements about filing your taxes is true?
a)
You need to file your tax return by the end of the calendar year (typically December 31st)
b)
If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return
c)
You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
d)
You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money
6.
6. 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 taxes?
a)
W-4
b)
W-2
c)
I-9
d)
1040
7.
8. When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…
a)
How much income did you earn this year?
b)
What type of income did you earn this year?
c)
What state you grew up in?
d)
Are you claimed as a dependent on anyone else's tax return?
8.
11. Elaine just accepted a new job and is working with the company’s HR department to complete paperwork. Which of the following steps is she responsible for before her first pay check ?
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
9.
12. What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
a)
I-9
b)
1099
c)
1040
d)
W-4
10.
13. Which of the following statements about this W-2 form is true?
a)
Avia Consulting will use this W-2 to file their 1040 form
b)
James earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages
c)
James paid state income taxes of $1,189.90
d)
James works in the same city that Avia Consulting is based in
11.
14. When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
a)
withholding
b)
direct deposit
c)
deduction
d)
refund
12.
15. Question #1 of 3: What was the net (or take-home) pay for this employee for this pay period?
a)
$335.10
b)
$400.00
c)
$2,680.80
d)
$3,200
13.
16. Question #2 of 3: How much did this person pay towards Medicare in this pay period only?
a)
$5.80
b)
$24.80
c)
$44.50
d)
$52.20
14.
17. Question #3 of 3: How frequently is this employee paid?
a)
Daily
b)
Every other week
c)
Weekly
d)
Monthly
15.
18. 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
16.
20. 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
17.
22. 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
18.
24. All of the following people would be required to file a tax return EXCEPT…
a)
Janet, who earned $28,200 but was paid entirely in cash
b)
Max, whose total income from three separate part-time jobs was $9,500
c)
Isaiah, who owns his own business and generated an income of $27,000
d)
Dani, who is a cafe barista and earned $14,000 in wages and $250 in tips
19.
Net pay is ...
a)
income before deductions
b)
income after deductions
c)
income you take home
d)
income with holdings
20.
The total amount of earnings before any deductions are taken out
a)
Gross Pay
b)
Net Pay
c)
After-tax Income
d)
Tax exempt Pay
100 %
