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WorksheetsUnit 5 - Employment & Taxes Study Guide
Total questions: 16
Worksheet time: 8mins
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
When you are notified by the IRS that you are required to pay federal income taxes
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
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
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
Federal income taxes
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...
What type of income did you earn this year?
What state do you live in?
Are you claimed as a dependent on anyone else's tax return?
How much income did you earn this year?
Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for?
Determine how much tax to withhold from her paychecks based on W-4 information
Complete a W-4 form
Send withholding amounts to the federal government
Complete a W-2 form
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
1099
1040
W-4
James paid state income taxes of $2,489.90
True
False
James paid state income taxes of $1,189.90.
True
False
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a .
withholding
direct deposit
deduction
What was the net (or take-home) pay for this employee for this pay period?
$335.10
$400.00
$2,680.80
$3,200
How much did this person pay towards Medicare in this pay period only?
$5.80
$24.80
$44.50
$52.20
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
If you owe money to the IRS, you receive a discount if you e-file use a tax filing website
You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online
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
An adult who financially supports you
Someone who is a full-time student under the age of 30
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 receive a refund
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
The W-2 includes information about the interest you earned from your investments
All of the following people would be required to file a tax return EXCEPT...
Janet, who earned $28,200 but was paid entirely in cash
Max, whose total income from three separate part-time jobs was $9,500
Isaiah, who owns his own business and generated an income of $7,000
Dani, who is a cafe barista and earned 13,000inwagesand 1,250 in tips
