WorksheetsUnderstanding Taxes
Total questions: 9
Worksheet time: 5mins
When do you start paying income taxes?
When you turn 18
When you get a full-time job (part-time does not count)
When you make more than the minimum income requirement
Why is it important to be extremely careful when completing your 1040 form?
Making a mistake will disqualify you from receiving future refunds
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
Mistakes on your 1040 form make you ineligible for employment during the next year
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
Social Security
Medicare
401(k) contribution
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...
How much income did you earn this year?
What type of income did you earn this year?
What state do you live in?
Which of the following describes what a "dependent" is for tax purposes?
A child or adult that you support financially
Someone who is temporarily disabled
Someone who is a full-time student under the age of 30
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a _________.
withholding
direct deposit
refund
Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?
Filing your taxes using a website is always free of charge
You are guaranteed a higher refund than if you were to use a paper form or hire a professional
You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will owe a payment to the IRS
They will be audited
They will be charged with tax evasion
Which of the following statements about the W-2 form is TRUE?
A W-2 lists all the money you earned in cash over the last year
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
You need a separate W-2 form from EACH of your employers in order to file your taxes
