WorksheetsTaxes Quiz
Total questions: 18
Worksheet time: 9mins
Mandatory government spending includes which of the following?
Infrastructure and science
Social Security and Medicare
Healthcare and military
Education and agriculture
What does the term "withholding" mean in reference to your paycheck?
The amount of your paycheck that you are NOT being taxed on
How much you are going to owe the government when you file your annual tax return
How much you earn and includes salary, bonus and commissions
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
When are you required to file and pay 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 (Standard Deduction)
When you are notified by the IRS that you are required to pay federal income taxes
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?
W-4
W-2
I-9
1040
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…
How much income did you earn this year?
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?
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
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
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 18,000inwagesand 250 in tips
Marquis is starting a fast food job during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. He earns 2000.BasedonhowhecompletedhisW−4,hisemployerwithheld 200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April?
The IRS will refund his $200 directly to him
The IRS will refund his $200 to his parents
The IRS will fine Marquis $75 or more for not filing taxes
Nothing will happen, but Marquis will miss out on his potential refund
Which of the following best describes a progressive tax system?
All taxpayers pay the same percentage of their income as tax
High-income earners pay a smaller percentage of their income than low-income earners
High-income earners pay a larger percentage of their income than low-income earners
The tax rate decreases as the taxpayer’s income increases
Which statement best describes the difference between gross income and taxable income?
Gross income includes all deductions, while taxable income is income before any deductions
They are the same; both represent the total income an individual earns in a year
Taxable income is always higher than gross income
Gross income is the total income earned, while taxable income is gross income minus deductions and exemptions
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
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
The purpose of taxes is:
To fund government services and public goods
To increase personal wealth
To reduce population
To promote private businesses only
The difference between a W-4 form and a W-2 form is:
A W-4 form is filled out by employees to determine tax withholding, while a W-2 form is provided by employers to report annual wages and taxes withheld.
A W-4 form is provided by employers to report annual wages, while a W-2 form is filled out by employees to determine tax withholding.
Both forms are used by employees to report their annual income.
Both forms are used by employers to determine tax withholding.
Which of the following best summarizes the pros and cons of old-fashioned paper filing, online websites, and hiring a tax professional?
Paper filing is slow but secure; online websites are fast but may have security risks; tax professionals offer expertise but can be costly.
Paper filing is the fastest method; online websites are always free; tax professionals are never helpful.
Paper filing and online websites are both expensive; tax professionals are always the cheapest option.
All three methods are equally secure and cost the same.
