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Tax Check In

Total questions: 42

Worksheet time: 43mins

Name
Class
Date
1.

A deduction is

a)

gross income

b)

money added to your income

c)

net income

d)

money taken out of your income

2.
Taxes are - 
a)
Money given to you by the government
b)
Free money to you
c)
Money you must pay to the government
d)
Money in someone's piggy bank
3.

Net income is:

a)

the total amount of money you earn

b)

the amount of money you receive after deductions are subtracted from your gross income

c)

the amount of money that is taken away in the form of taxes

d)

the hourly rate of pay

4.

Gross income is:

a)

the total amount of money you earn

b)

the amount of money you receive after decuctions are subtracted

c)

the total amount of money you spend

d)

sales taxes on items you buy

5.

Which of these is NOT an example of property tax?

a)

Tax paid on the value of a farm a person owns

b)

Tax paid on the value of a piece of land a person owns

c)

Tax paid on the value of a piece of furniture a person owns

d)

Tax paid on the value of a home a person owns

6.
a)

Income Tax

b)

Sales Tax

c)

Payroll Tax

d)

Property Tax

7.

Nick delivers pizza for extra money while he finishes high school. He earns about $60 on a typical night. What kind of tax will Nick have to pay on what he earns delivering pizzas?

a)

Income Tax

b)

Sales Tax

c)

Payroll Tax

d)

Property Tax

8.

David's gross income: $127.25

David's deductions: $25.20

David's net pay: ?

a)

$102.05

b)

$102.45

c)

$112.05

d)

$152.45

9.

A payment from banks or the use of (customers') money.

a)

spending

b)

interest

c)

wealth

d)

checking

10.

What is the name of the document that comes with your paycheck and shows you what you were paid and how much was taken for taxes?

a)

Paystub

b)

Payline

c)

Pay Report

d)

Pay Sheet

11.

Being on a budget means...

a)

You pay bills every month on the due date.

b)

You made a plan of your expenses to be less than or equal to your income.

c)

You are earning enough money to be able to live well.

d)

Your bills are generally paid by every due date.

12.

What is NOT a method to improve your credit score?

a)

Pay all your bills on time.

b)

Maintain your older credit cards.

c)

Keep your credit card balances under 30% of your credit limit.

d)

Always pay in cash and do not get any credit cards.

13.

An example of a need is...

a)

a Florida vacation

b)

a car

c)

room and board

d)

a laptop

14.

It is OK to skip payments on your bills some months, as long as you pay the next month.

a)

True

b)

False

15.

How does a bank make money?

a)

Keep some of the money you deposit in a savings account

b)

Charge interest on loans

c)

Charge a tax for depositing money

d)

Sell lollipops to gullible customers

16.

Which of the following is an example of a fixed expense?

a)

Rent

b)

Food

c)

Credit card bill

d)

Car payment

17.

Jason's salary is $54,000. What is the amount of his net pay after the 25% federal withholding income tax is deducted?

a)

$13,500

b)

$40,500

c)

$67.500

d)

$15,300

18.

An electronic transfer of a payment directly from the bank account of the payer to the recipient's account. An example of this might include having your paycheck automatically added to your checking.

a)

Direct Deposit

b)

Withdrawal

c)

Reconcile

d)

Transaction

19.

A negative balance in a bank account caused by using more money than the account holds.

a)

Overdraft

b)

Endorsement

c)

Minimum Balance

d)

Direct Deposit

20.
goods or services that a person may desire, but that are not essential for life, such as toys, games, or candy
a)
opportunity cost
b)
wants
c)
scarcity
d)
needs
21.

What is Borrowed Money called? *

a)

Interest

b)

Loans

c)

Savings

d)

Investment

22.

What are the Deductions from your earnings called? *

a)

Gross Pay and Interest

b)

Savings

c)

Taxes, FICA, & Social Security

d)

Net Pay

23.

Who collects income tax?

a)

City and State Government

b)

Local Government

c)

City and Federal Government

d)

Federal and State Government

24.

Which form do you use to declare the number of exemptions you wish your tax withholdings to be based on?

a)

1099-MISC

b)

W-2

c)

W-4

d)

Schedule A

25.

Which form do you receive from your employer showing the amount of your wages and the tax withheld?

a)

Schedule A

b)

W-2

c)

W-4

d)

1099-INT

26.

Which income do you use with the tax table?

a)

Adjusted Gross Income

b)

Income from all sources

c)

Taxable Income

d)

Only income from your main job

27.

Who collects property tax?

a)

City and State Government

b)

Local Government

c)

City and Federal Government

d)

Federal and State Government

28.
When is a W4 form filled out?
a)
Right before you file your taxes
b)
When you quit a job
c)
When you start a job
29.
Who is responsible for filling out a W4 form?
a)
You
b)
Your employer
c)
Your Bank
d)
The IRS
30.
Which tax form provides information on how much you have earned in interest on your savings tools, such as savings accounts?
a)
W2
b)
W4
c)
1040
d)
1099-INT
31.

What is the purpose of IRS Form 1040?

a)

Reporting wages to employees

b)

Filing annual income tax returns for individuals

c)

Verifying employment eligibility

d)

Reporting income other than wages

32.

What type of information does a W-4 form provide?

a)

Employee's annual income

b)

Employer's tax liability

c)

Employee's withholding allowances

d)

Employer's business expenses

33.

Which tax form is used to report income other than wages?

a)

1040

b)

W-2

c)

W-4

d)

1099

34.

What is the legal requirement for an individual regarding Form 1040?

a)

Filing annually with the employer

b)

Filing annually with the IRS

c)

Completing upon starting a new job

d)

Providing to employees annually

35.

Who completes an I-9 form?

a)

Only the employer

b)

Only the employee

c)

Both the employer and the employee

d)

The Social Security Administration

36.

Which tax form verifies employment eligibility?

a)

1040

b)

W-2

c)

W-4

d)

I-9

37.

What is the primary purpose of a W-4 form?

a)

Reporting income other than wages

b)

Verifying employment eligibility

c)

Determining the amount of federal income tax withheld from paychecks

d)

Filing annual income tax returns

38.

Deadline for employers to mail W-2s to their employees (either by paper or electronically).

a)

January 1st

b)

January 31st

c)

April 15th

d)

October 15th

39.

Last day to e-file or mail federal and state income tax forms or to request an extension.

a)

December 31st

b)

April 15th

c)

October 15th

d)

January 1st

40.

I am received in January. You get me if you are not an employee, but were paid by a company. You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up. What tax document is this?

a)

1099 Form

b)

1040 Form

c)

W-4 Form

d)

W-2 Form

41.

Deadline for filing federal and state income returns that have received extensions.

a)

December 31st

b)

April 15th

c)

October 15th

d)

January 1st

42.

Which program provides health coverage if you are 65 and older or have a severe disability, no matter your income?

a)

Social Security

b)

Medicare

c)

Medicaid