Font size
WorksheetsReview 5A: Taxes
Total questions: 39
Worksheet time: 22mins
Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?
Military and Education
Health and Veterans’ Benefits
Housing and Transportation
Social Security and Medicare
On a pay stub, the amount of money that is left after withholdings is known as…
Gross pay
Net pay
Annual earnings
Wages and tips
Which statement best describes discretionary government spending?
A fixed amount of money spent on the same categories every year
The money used to pay for Social Security and Medicare
A changing amount of money spent on different categories each year
Money that you determine how it is spent by the government when you submit your taxes
How frequently does Hope receive a paycheck?
Daily
Weekly
Twice per month
Monthly
Assuming that Hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has Hope had year-to-date (YTD)?
2
3
8
9
Which statement below accurately describes Hope’s gross wages?
Gross wages are calculated by multiplying Hope’s hourly rate by the number of hours she worked
Gross wages are Hope’s fixed salary, which she receives for every pay period
Gross wages are calculated by subtracting all of Hope’s deductions from her gross income
Gross wages are how much Hope has earned over the course of the entire year
What was the largest deduction for this pay period?
FICA Medicare Tax
FICA Social Security Tax
Federal Tax
NC State Tax
Look at the lines that say HEALTH, DENTAL, and RETIREMENT. Which statement below is accurate?
Those lines represent taxes that Hope paid to the Federal government
Those lines represent taxes that Hope paid to the state government
Those lines represent benefits that the employer is paying to Hope in addition to her wages
Those lines represent insurance and retirement plans that Hope funds directly from her paycheck
Hope's contribution to her RETIREMENT plan...
is a post-tax contribution on which she pays federal income taxes
is pre-tax and therefore not included in federal income taxes
is a contribution to her Social Security
is taxed at a rate of 15%
What was the TOTAL amount deducted from Hope's latest paycheck?
$90.00
$284.79
$315.21
$600.00
One of Hope’s coworkers quits, and during the next pay period Hope works 60 hours instead of 40 to help cover the shifts. Which of Hope’s deductions will definitely change as a result?
Her federal tax
Her health
Her dental
Her retirement
Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/20?
$40.00
$284.79
$315.21
$600.00
You recently accepted a new job and your first day is next week. What form will you have to complete before you receive your first paycheck?
W-2
1040
1099
W-4
You were unable to file your taxes before the April deadline and your application for an extension was approved. What month was your deadline extended to?
May
October
December
January
Which of the following statements most accurately describes why it’s important to correctly fill out a W-4 form?
It determines how much money is withheld from your paycheck and can result in under or overpayment of taxes if filled out incorrectly
It is a legally binding contract between you and your employer that determines how much they pay you
If you pay the exact right amount in taxes, you receive a tax credit in the following year
If you underpay your taxes, you’ll be responsible for additional penalties beyond your normal tax obligation
All of the following people can be claimed as a dependent for tax purposes EXCEPT…
A 23 year old college student whose parents pay all of their expenses
A 17 year old high school student with a part-time job whose parents pay for all of their expenses
A 20 year old college student with a paid internship who pays for all of their own expenses
A 25 year old cousin with no job who has lived in your parent/guardian’s house for the last year
You are required to file a tax return in all of the following scenarios EXCEPT…
You made $25,000 working a full-time job
You made $3,000 from investments in the stock market
You were self-employed and made $2,500
You made $9,000 working a part-time job
What is the purpose of the self-employment tax (SECA)?
To tax self-employed individuals a greater amount than regular employees since they’re more likely to make health insurance claims
To tax self-employed individuals a lesser amount than regular employees since they generally make less money
To tax self-employed individuals an equivalent amount for Social Security and Medicare since FICA taxes aren’t taken out of their paycheck
To tax self-employed individuals a flat amount since they don’t pay federal or state
Match the description with the tax form.
I am received in January
There is one of me for every job you work
You can tell how much you earned and how much you paid in taxes by reading me
1040
W-2
W-4
1099
I-9
Match the description with the tax form.
I am received in January
You get me if you are not an employee, but were paid by a company
You can also get me for other types of income, such as gains and losses in brokerage accounts, dividend and interest payments, and more
You probably didn’t get taxes withheld if you got me, so you may have a big tax bill coming up
1040
W-2
W-4
1099
I-9
Match the description with the tax form.
I am completed every April
Anyone can use me
Beware, there is a LOT to fill out
1040
W-2
W-4
1099
I-9
Match the description with the tax form.
I am received whenever you start a job
You list information about yourself and your family on me
I determine how much money gets taken out of each paycheck
1040
W-2
W-4
1099
I-9
Match the description with the tax form.
I am received whenever you start a job
You use me to prove that you are eligible to work in the U.S.
You must provide forms of identification when submitting me
1040
W-2
W-4
1099
I-9
In the year 2008, which group had the largest percentage of filers?
(a)
Which age group represents the highest percentage of taxpayers in 2020?
(a)
Which age group has seen the sharpest increase as a percentage of taxpayers from 2008 to 2020?
(a)
Which two groups have the largest decrease in filers from 2008-2020?
Answer format: 20-25 and 30-35
(a)
Between which two age groups do you see the sharpest increase in the percentage of filers?
Answer format: 20-25 and 30-35
(a)
If you’re looking to pay as little as possible to file your taxes BUT you’re worried about making mistakes, which tax preparation method would be your best option?
Do-it-yourself paper filing
Online tax preparation service
Hiring a tax professional
Requesting the IRS complete your taxes for you
All of the following are found on a W-2 form EXCEPT…
Wages, tips, and other compensation
Federal and state taxes withheld
Sales taxes paid
FICA taxes withheld
Which of the following is the term for a tax rate that increases at higher levels of income?
FICA tax
Sales tax
Flat tax
Progressive tax
This form will be sent to Lily by the end of January. She will use this W-2 form to...
Obtain employment
Receive her paycheck
File her income taxes
Begin her retirement savings
As Lily is completing her 1040 form, what piece of information will she find on a different document rather than on this W-2?
Gross wages earned
Federal income taxes she’s already paid
State income taxes she’s already paid
Income earned from her investments
All of the following employee information is included on a W-2 form EXCEPT...
Employer name and EIN (Employer Identification Number)
Employee’s Social Security Number
Employee’s date of birth
Employee’s current address
Based on this W-2, which of the following statements is TRUE?
Lily is contributing to a 401(k) retirement through her employer
Lily works in the state of Indiana, which does not have an income tax
Lily’s taxable wages are much larger at the federal level than at the state or local level
Lily earned more than $13,850 (which is the standard deduction amount)
What were Lily’s gross wages for this period?
$1,722.44
$2,480.17
$14,450
$16,172.44
Based on the W-2 form provided, what was the largest withholding?
Medicare tax
Federal income tax
State income tax
Social security tax
Based on the W-2 provided, Social Security tax withheld for Lily was __________ of wages and Medicare tax withheld was __________ of wages.
1.3%, 5.5%
6.2%, 1.45%
10%, 10%
28%, 39.8%
Based on the W-2 provided, Lily paid Indiana a state income tax rate of ____.
1.2%
2.9%
3.2%
4.6%
