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Income Tax and Paychecks Review

Total questions: 45

Worksheet time: 1hrs 10mins

Name
Class
Date
1.

Liam receives his paycheck and notices a DATE on it. What does this PAY DATE represent?

a)

The day Liam is actually being paid

b)

The date range the paycheck is covering for Liam

c)

The total amount of money Liam made

d)

The amount of money available to Liam

2.

Arjun just started a new job and is trying to understand his paycheck. What does the term 'pay period' refer to?

a)

The day Arjun is actually being paid

b)

The date range Arjun's paycheck is covering

c)

The total amount of money Arjun made

d)

The amount of money available to Arjun

3.

Aria, Olivia, and Scarlett are discussing their part-time jobs. Scarlett asks, 'What is net pay?'

a)

The day Scarlett actually gets her paycheck

b)

The date range Scarlett's paycheck is covering

c)

The total amount of money Scarlett made at her job

d)

The amount of money available to Scarlett AFTER deductions

4.

Noah recently received his pay stub and noticed something confusing on it. What should he do?

a)

Ask his employer for clarification

b)

Ignore it and move on

c)

Complain to his co-workers

d)

Research it on his own

5.

Benjamin recently started a new job and his employer offers health insurance, disability, and retirement benefits. What deductions might be present in his next paycheck?

a)

Federal income tax, state income tax, Medicare, and Social Security

b)

Payments/deductions for Health insurance, disability, retirement, and taxes

c)

Gross pay and net pay

d)

Pay date and pay period

6.

Being paid $76,000 a year is the same as $__________ weekly.

a)

$1461

b)

$2238

c)

$6333

d)

$875

7.

Being paid $3755 monthly is the same as $_________ annually.

a)

$45,060

b)

$15,020

c)

$1,877

d)

$53,275

8.

What are the different components of a pay check?

a)

Hourly rate, annual salary, commission

b)

Gross pay, deductions, net pay, additional earnings or bonuses

c)

Taxes, insurance, retirement savings

d)

Overtime pay, holiday pay, sick pay

9.

What is the purpose of a pay stub?

a)

To show the employee's favorite color

b)

To provide detailed information about an employee's pay

c)

To provide information about company policies

d)

To track employee attendance

10.

What is the difference between gross pay and net pay?

a)

Gross pay is the total earnings before deductions, while net pay is the amount left after all deductions are made.

b)

Gross pay is the amount left after all deductions are made, while net pay is the total earnings before deductions.

c)

Gross pay and net pay are the same.

d)

Gross pay is the amount of money an employee earns per hour, while net pay is the total earnings for the year.

11.

What is the difference between a salary and a wage?

a)

A salary is a fixed amount of money paid to an employee for a set period of time, while a wage is paid based on the number of hours worked.

b)

A salary is paid based on the number of hours worked, while a wage is a fixed amount of money paid to an employee for a set period of time.

c)

A salary and a wage are the same.

d)

A salary is the amount of money an employee earns per hour, while a wage is the total earnings for the year.

12.

Felipe earns 5% commission on his sales at Best Buy. One week his sales totaled $9,650. What was his commission for the week?

a)

$9,167.50

b)

$482.50

c)

$965

d)

$487.50

13.

Randy works 40 hours a week. His regular hourly rate is $23.61. How much does Randy make annually?

a)

$944.40

b)

$11805

c)

$47220

14.
A part-time receptionist earns $6.75 per hour.  If she works 30 hours, how much  will she earn?  
a)
$4.44
b)
$202.50
15.

A form W-2 _____.

a)

arrives monthly

b)

gets completed on your first day of work

c)

is used to file an income tax return

d)

should be shredded after receipt

16.

Income Tax Returns must be filed by _____

a)

April 15

b)

December 31

c)

January 31

d)

June 1

17.
money that is subtracted from your paycheck and given to the federal government to help run the country
a)
Local Tax
b)
State Tax
c)
Federal Tax
18.

Which of the following is not a mandatory deduction?

a)

Federal and state taxes

b)

FICA (Social Security / Medicare)

c)

Healthcare

d)

Local taxes

19.

What document am I? 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.

a)

1040

b)

I-9

c)

W-2

d)

W-4

e)

1099

20.

What document am I? 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.

a)

1040

b)

I-9

c)

W-2

d)

W-4

e)

1099

21.

This is a possible sample of what type of form?

a)

W-2

b)

W-4

c)

1040

d)

1099

22.

You can file your taxes all of the following ways, except...

a)

by mail

b)

by phone

c)

digitally/electronically

d)

Through a tax consultant or certified professional

23.

What are 2 things a w-2 form tells you? (check 2)

a)

how much you earned for the year in wages and tips

b)

How much your retirement plan grew in total for the year

c)

A breakdown of what your tax deductions were spent on by the government

d)

how much was withheld (deducted) from your paychecks

24.

What item would you DEFINITELY see on all paystubs?

a)

Retirement Plan

b)

Healthcare Deductions

c)

Gross Pay

d)

Your occupation/role

25.

All of the following services are fully funded by taxes, except...

a)

roads

b)

police

c)

post office

d)

fire departments

e)

all of the options are funded by taxes

26.

What type of tax system does the U.S. primarily use?

a)

Proportional

b)

Flat

c)

Progressive

d)

Regressive

27.

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

28.
How much tip should you leave if you want to tip 23% at Applebee's on a $27.31 bill?
a)
$6.28
b)
$33.59
c)
$21.03
29.

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

30.

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

a)

W-2

b)

W-4

c)

1099

d)

1040

31.

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

32.

What is earned income made up of?

a)

Investments

b)

Wages and salaries

c)

Gifts

d)

Interest from savings

33.

What is the standard deduction?

a)

A set deduction amount that lowers your effective tax rate

b)

A deduction for charitable donations

c)

A deduction for medical expenses

d)

A deduction for educational expenses

34.

Which is better: standard or itemized deduction?

a)

Always standard

b)

Always itemized

c)

Whichever is higher

d)

Whichever is lower

35.

If you are owed a tax refund, how can you receive it?

a)

You won't have to pay taxes the next year.

b)

It will automatically be applied to any credit card debts you have.

c)

You must go pick up your refund at the IRS.

d)

IRS will mail a paper check or you can have the money directly deposited.

36.

What happens if you owe tax money and you can't afford the full amount?

a)
You can file for bankruptcy to avoid paying the tax debt.
b)

You have the option of requesting a payment plan.

c)
You can try to hide your assets to avoid paying the tax debt.
d)
You can ignore the tax bill and hope the IRS doesn't notice.
37.
Single, Married Filing Joint, and Head of the Household are all examples of___ on a tax return.
a)
filing status
b)
standard deductions
c)
itemized deductions
d)
dependents
38.
Which of the following found on a tax return, REDUCES your tax?
a)
Unemployment compensation
b)
Taxable interest
c)
Tips
d)
Credits
39.

____ is the deadline to file your tax return.

a)

January 31

b)

January 1

c)

December 31

d)

April 15

40.

The company or person you work for is called your ...

a)

employee

b)

employer

c)

teacher

41.

Identify TWO examples of taxes deducted from your paycheck.

a)

Federal

b)

Road Taxes

c)

Social Security

d)

Public Safety Tax

42.

Which state has the highest state income tax?

a)

Oregon

b)

California

c)

New York

d)

Hawaii

43.

Ron decides to see what percentage his company is taking out for Federal Taxes. What percentage of his gross pay is the company taking out for Federal Taxes?

a)

0%

b)

22%

c)

6%

d)

14%

44.

Which form comes pre-filled by your employer that you MUST have to fill out your tax form?

a)
b)
c)
d)
45.

Beth found out that she owes money to the IRS after filing her tax return. What is the most reasonable explanation as to why she owes money in taxes?

a)

Too much money was withheld from her paychecks.

b)

Not enough money was withheld from her paychecks.

c)

The IRS is asking Beth for a future advance on her possible taxes for next year.