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Worksheets

Tax Terms

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

Ava received her paycheck and noticed the gross pay amount.

a)

total amount before deductions and taxes

b)

The amount you make per hour

c)

total amount after deductions and taxes

d)

The amount you owe in taxes

2.

Priya received her paycheck and wants to know her Net Pay

a)

total amount before deductions and taxes

b)

The amount you make per hour

c)

total amount after deductions and taxes

d)

The amount you owe in taxes

3.

1040

a)

Form that you fill out when you start a job

b)

Form that determines your ability to work (citizenship)

c)

Form that shows how much you made the previous year

d)

Form that is used to file your taxes.

4.

I9

a)

Form that you fill out when you start a job

b)

Form that determines your ability to work (citizenship)

c)

Form that shows how much you made the previous year

d)

Form that is used to file your taxes.

5.

W2

a)

Form that you fill out when you start a job

b)

Form that determines your ability to work (citizenship)

c)

Form that you receive that shows your wages for the year

d)

Form that is used to file your taxes.

6.

W4

a)

Form that you fill out when you start a job

b)

Form that determines your ability to work (citizenship)

c)

Form that you receive that shows your wages for the year

d)

Form that is used to file your taxes.

7.

David, who is a college student, relies on his parents for income and care. What is David considered as?

a)

Parent

b)

Dependent

c)

Teacher

d)

Student

8.

Medicare

a)

Program the provides food for low income people

b)

Program that provides medical care for elderly and disabled

c)

Program that provides retirement income to elderly and disabled

d)

Program that lowers the tax rate for retired people.

9.

Michael is planning for his retirement and wants to understand Social Security.

a)

Program the provides food for low income people

b)

Program that provides medical care for elderly and disabled

c)

Program that provides retirement income to elderly and disabled

d)

Program that lowers the tax rate for retired people.

10.

Charlotte is reviewing her paycheck and notices a deduction labeled FICA. What does this deduction fund?

a)

Taxes that help build state schools

b)

Taxes that fund Social Security and Medicare

c)

Taxes that fund state police

11.

Ethan is reviewing his tax return and notices a tax credit. What does this mean?

a)

Amount subtracted from taxes owed

b)

Amount subtracted from your income

c)

Amount that the government owes you if you overpay on taxes.

d)

Amount you pay in taxes each year

12.

Tax Deduction

a)

Amount subtracted from taxes owed

b)

Amount subtracted from your taxable income

c)

Amount that the government owes you if you overpay on taxes.

d)

Amount you pay in taxes each year

13.

Grace received a tax refund.

a)

Amount subtracted from taxes owed

b)

Amount subtracted from your taxable income

c)

Amount that the government owes you if you overpay on taxes.

d)

Amount you pay in taxes each year

14.

What is the purpose of a 401(k) plan?

a)

To provide health insurance for employees

b)

To offer a retirement savings plan for employees

c)

To fund educational expenses for employees' children

d)

To provide unemployment benefits

15.

What is a tax bracket?

a)

A category that determines the amount of tax you owe based on your income

b)

A form you fill out to apply for a tax refund

c)

A deduction you can claim for charitable donations

d)

A penalty for late tax payments

16.

What is the main function of the IRS?

a)

To provide loans to small businesses

b)

To collect taxes and enforce tax laws

c)

To manage the national budget

d)

To regulate the stock market

17.

Which of the statements about the W2 form is true

a)

Avia Consulting will use the W2 to file their 1040

b)

James earned about 117,000 over the year based on her total taxable income

c)

James paid state income tax of $1,189.90

d)

James works in the same city as Avia Consulting

18.

Which was the net pay for this employee for the pay period?

a)

$335.10

b)

$400.00

c)

$2680.80

d)

$3200.00