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Taxes (Full Review)

Total questions: 36

Worksheet time: 54mins

Name
Class
Date
1.

Which form is used to file your tax return with the IRS?

a)

W-2

b)

W-4

c)

1099

d)

1040

2.
The amount of money you actually receive after the deductions are taken from your gross income.
a)
Net income
b)
Deductions
c)
Wages
d)
Tax
3.
Total money you earn before taxes and other deductions.
a)
Salary
b)
Net income
c)
Gross income
d)
Wages
4.

This form will be sent to Lily by the end of January. She will use this W-2 form to…

a)

Obtain employment

b)

Receive her paycheck

c)

File her income taxes 

d)

Begin her retirement savings

5.

All of the following employee information is included on a W-2 form EXCEPT...

a)

Employer name and EIN (Employer Identification Number)

b)

Employee’s Social Security Number

c)

Employee’s date of birth

d)

Employee’s current address

6.

When you receive a new job, you are mandated to file a

a)

Complaint

b)

Divorce

c)

W-4

d)

W-2

7.

When you are ready to file for taxes you must have form

a)

W-2

b)

W-6

c)

WD40

d)

W-2484

8.

Jay filed his taxes and found out he owes money. What is the most reasonable explanation as to why he owes money in taxes?

a)

Not enough money was withheld from his paychecks.

b)

Too much money was withheld from his paychecks.

c)

When filing his taxes, Jay accidentally checked “Married filing jointly” instead of “Single”.

d)

The IRS is asking Jay for a future advance on his possible taxes for next year.

9.

The Federal government spends the most amount of tax money on...

a)

Science

b)

Veterans

c)

Education

d)

Health

10.

All of the following are factors that impact the amount someone may pay in taxes EXCEPT...

a)

Income

b)

Political party

c)

State

d)

Marital status

11.

The W-4 form lets...

a)

the government know how much you paid in taxes last year

b)

your employer know how much to withhold from your paycheck

c)

the 3 major credit bureaus know how many dependents you have

d)

you know how much you paid in taxes last year

12.

The more allowances you claim on your W-4...

a)

The more money is withheld from your paycheck

b)

The less money is withheld from your paycheck

c)

The # of allowances doesn't impact how much $ is withheld

d)

You claim allowances on a W-2, not the W-4

13.

Which of the following is NOT a way you can file your taxes?

a)

Through a tax professional

b)

Mailing in a paper tax return to the Federal government

c)

Using tax software like TurboTax

d)

Through your employer's HR department

14.
FICA taxes are
a)
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare
b)
U.S. federal payroll taxes imposed on employees only to fund Social Security and Medicare.
c)
U.S. federal payroll taxes imposed on both employees and employers to fund Social Security.
d)
U.S. federal payroll taxes imposed on employers only to fund Social Security and Medicare
15.
Helps provide retirement income for the elderly and pays disability benefits
a)
medicare
b)
social security
c)
state income tax
d)
federal income tax
16.
A health care program for the elderly and disabled
a)
social security
b)
medicare
c)
state income tax
d)
federal income tax
17.

Incomes up to $10,000 pay 2%; incomes from $10,001 to $20,000 pay 4%; Incomes above $20,000 pay 5%. This is an example of which type of tax?

a)

regressive

b)

progressive

c)

sales tax

d)

property tax

18.
The government agency in charge of collecting tax.
a)
FICA
b)
IRS
c)
NBA
d)
SEC
19.
a tax in which the tax rate increases as the taxable amount increases
a)
progressive
b)
regressive
c)
flat
d)
proportional
20.

The property tax is an example of which type of tax?

a)

Progressive tax

b)

Regressive tax

c)

Proportional (flat) tax

d)

Excise tax

21.

In the United States we have progressive income taxes which means that as taxable income increases, income tax rates ____.

a)

Also increase

b)

Stay the same

c)

Decrease

d)

Depends on other factors

22.

A closer examination of tax returns by the IRS is called ____.

a)

Tax evasion

b)

A tax bracket

c)

An audit

d)

An itemization

23.

Social Security and Medicare make up an employee’s ____ deductions.

a)

Interest

b)

401K

c)

FICA

d)

IRA

24.

Willful failure to pay taxes is a crime known as ____.

a)

Tax evasion

b)

Tax fraud

c)

Voluntary compliance

d)

Auditing

25.

A sales tax is an example of a _______.

a)

Progressive tax

b)

Proportional tax

c)

Regressive tax

d)

Income tax

26.

Which U.S. Department works with the IRS to control our Nation’s Fiscal Policy?

a)

The IRS

b)

The U.S. Treasury Department

c)

The FDIC

d)

The Federal Reserve System (The Fed)

27.

What is the primary purpose of excise taxes?

a)

To tax the income of individuals

b)

To reduce consumption of certain goods

c)

To collect revenue on imported goods

d)

To fund local government projects

28.
Question Image

Match the following

a)

As income increases the percentage of tax paid increases.

1.

Progressive Tax

b)

As income increases the percentage of tax paid decreases.

2.

Regressive Tax

c)

As income changes the percentage of tax paid stays the same.

3.

Proportional Tax.

29.

Match the following

a)

Income Tax

1.

tax on money earned from a job

b)

Sales Tax

2.

Tax paid on items you buy

c)

Property Tax

3.

Tax paid on property you own

30.

In the United States we have progressive income taxes which means that as taxable income increases, income tax rates ____.

a)

Also increase

b)

Stay the same

c)

Decrease

d)

Depends on other factors

31.

Which of the following is NOT an income tax filing status?

a)

Single person

b)

Divorced person

c)

Married person filing joint return

d)

Head of household

32.

A closer examination of tax returns by the IRS is called ____.

a)

Tax evasion

b)

A tax bracket

c)

An audit

d)

An itemization

33.

Social Security and Medicare make up an employee’s ____ deductions.

a)

Interest

b)

401K

c)

FICA

d)

IRA

34.

Which U.S. Department works with the IRS to control our Nation’s Fiscal Policy?

a)

The IRS

b)

The U.S. Treasury Department

c)

The FDIC

d)

The Federal Reserve System (The Fed)

35.

Which U.S. Federal Agency controls our Nation’s Monetary Policy?

a)

The IRS

b)

The U.S. Treasury Department

c)

The FDIC

d)

The Federal Reserve System (The Fed)

36.

Which of the following is the primary source of income for young professionals?

a)

Child support

b)

Dividends

c)

Capital gains

d)

Wages, tips, & salaries