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WorksheetsTC2--MSU Adulting: They Took What? Your First Paycheck and Taxes
Total questions: 10
Worksheet time: 5mins
What is the purpose of federal income tax?
To fund state governments
To fund federal government programs and services
To pay for personal expenses
To pay for local government services
Which of the following is typically withheld from your paycheck?
Federal income tax
State income tax (if applicable)
Social Security and Medicare taxes
All of the above
What is the standard deduction?
A fixed amount that reduces your taxable income
An amount added to your paycheck
A tax credit that increases your refund
A fee charged by the IRS
What is the difference between gross income and net income?
Gross income is after taxes; net income is before taxes
Gross income is before taxes; net income is after taxes
They are the same
Net income is higher than gross income
What is a W-2 form used for?
To report your annual income and taxes withheld
To apply for a job
To claim dependents
To calculate your refund
What is FICA?
A tax credit for low-income individuals
A federal program that provides unemployment benefits
A federal law that sets minimum wage standards
The Federal Insurance Contributions Act, which funds Social Security and Medicare
What is a W-4 form used for?
To report your annual income
To determine how much federal income tax should be withheld from your paycheck
To apply for a tax refund
To report your state income tax
What is the deadline for filing your federal income tax return?
January 1
April 15
June 30
December 31
What is a tax refund?
Money you owe to the IRS
Money the IRS owes you if you overpaid your taxes
Money you receive from your employer
Money you receive for filing your taxes late
Which of the following is a good practice when managing your paycheck and taxes?
Ignoring your pay stubs and tax forms
Keeping track of your income and deductions
Relying solely on your employer to manage your taxes
Avoiding filing your taxes
