WorksheetsUnit 7 Review (Taxes)
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
What does the term "withholding" mean in reference to your paycheck?
a)
It is the amount of your paycheck that you are NOT being taxed on.
b)
It is how much is being taken out of your paycheck in taxes.
c)
It is how much you are going to owe the government when you file your annual tax return.
d)
It is how much you earn and includes salary, bonus and commissions.
2.
When do you start paying income tax?
a)
When you turn 18
b)
When you make more than the minimum income requirement
c)
When you get a full-time job (part-time does not count)
d)
When you are notified by the IRS that you are required to pay federal income taxes
3.
What is the difference between gross pay and net pay?
a)
Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay.
b)
Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay.
c)
There is no difference between gross and net pay.
4.
What does FICA consist of?
a)
Health Insurance
b)
Social Security & Medicare
c)
Federal & State Taxes
d)
Employer Sponsored Retirement
5.
How do employers figure out how much federal income tax to withhold from your paycheck?
a)
It is set by a federal regulation at 7.65%
b)
It is based on your previous year's tax return
c)
It is based on the information you have provided on your I-9 form
d)
It is based on the information you have provided on your W-4 form
6.
What is the deadline for you to receive your W-2 from your employer?
a)
Within 30 days of hire
b)
Any time you request it in writing
c)
January 31st
d)
April 15th
7.
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 federal and state income taxes?
a)
W-2
b)
W-4
c)
I-9
d)
1040
8.
What tax form am I? I am received when you start a job. You use me to prove that you are eligible to work in the U.S., and you must provide forms of identification when submitting me.
a)
I-9
b)
1099
c)
1040
d)
W-4
9.
Upon completing your 1040, you realize that you owe the IRS $427. Each of the following is a possible way to pay the taxes you owe EXCEPT...
a)
Write a check and mail it to the IRS.
b)
Tell the IRS to take out more taxes next year to pay back the $427.
c)
Use your debit or credit card online or by phone.
d)
Set up a direct payment from your bank account.
10.
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
a)
withholding
b)
direct deposit
c)
deduction
d)
refund
11.
Why should you accurately complete a W-4 form any time you start a new job or change your tax status?
a)
You need a copy of your W-4 to file your tax return annually
b)
Your W-4 determines how much Federal income tax money your employer should withhold
c)
Your W-4 determines your total tax bill at the end of the year
d)
Completing a W-4 will guarantee you receive a large tax refund
12.
Jay filed his taxes and found out he owes money. What is the most reasonable explanation as to why he owes money in taxes?
a)
Not enough money was withheld from his paychecks.
b)
Too much money was withheld from his paychecks.
c)
When filing his taxes, Jay accidentally checked “Married filing jointly” instead of “Single”.
d)
The IRS is asking Jay for a future advance on his possible taxes for next year.
13.
All of the following are factors that impact the amount someone may pay in taxes EXCEPT...
a)
Income
b)
Political party
c)
State
d)
Marital status
14.
Which of the following is the largest source of income for the Federal government?
a)
Payroll tax
b)
Income tax
c)
Corporate tax
d)
Property tax
15.
Which of the statements about the current U.S. tax system is TRUE?
a)
Our current system is described as being a progressive system because it imposes higher rates on those who earn more.
b)
Your friend tells you his marginal tax rate is 22%. That means that he pays 22% on all of his income.
c)
Everyone in the US who makes more than the minimum income requirement pays one flat tax rate.
d)
Our current system is described as being a regressive system because it imposes higher rates on those who earn less.
16.
Which of the following statements about marginal and effective tax rates is TRUE?
a)
Marginal rate is the average tax rate on your entire income, while effective rate is based on your total income and determines what tax bracket you are in.
b)
Marginal rate is based on your total income and determines what tax bracket you are in, while effective rate is the average tax rate on your entire income.
c)
Marginal rate is the total amount of money you paid in taxes last year, while effective rate is the refund amount you received last year.
d)
Marginal rate and effective rate can be used interchangeably, as they mean the same thing.
17.
Who is legally required to file a tax return? (Note: All of the following people can be claimed as a dependent.)
a)
Madison, who earned $350 from her cake business.
b)
Matthew, who received $800 in investment income.
c)
Greg, who earned $1,250 from his part-time job.
d)
Risha, who earned $14,800 from her internship.
18.
When people refer to "Tax Day" they mean...
a)
January 1, the first day of the calendar year
b)
April 15, the typical deadline to file your taxes
c)
December 31, the last day to earn income and have it count toward that tax year
d)
Whatever day your tax refund comes in the mail
19.
A dependent is someone who...
a)
relies on someone else to provide a quarter or less of their financial support.
b)
relies on someone else to provide more than half of their financial support.
c)
is able to fully financially support themself.
d)
provides financial support for someone else.
20.
When you sit down to file your 1040 form, which document(s) should you have in front of you?
a)
W-2 form(s)
b)
W-4 form(s)
c)
I-9 form(s)
d)
Checking account statements from last year
21.
What form do you use to file a tax return with the IRS?
a)
W-2
b)
W-4
c)
1040
d)
I-9
22.
Jack has a part-time job that pays $20/hour and works about 20 hours every month. His withholdings are Social Security (6.2%), Medicare (1.45%), federal income tax (10%) and state income tax (4.25%). What is her net pay?
a)
$312.40
b)
$70.60
c)
$87.60
d)
$140.60
e)
$170.60
23.
Katie made $35,000 in 2024 and takes the standard deduction. How much does she owe in federal taxes?
a)
$2,216.00
b)
10%
c)
12%
d)
$20,400.00
e)
$35,000.00
24.
Jim has a gross income of $106,000 and takes the standard deduction. What is his marginal tax rate?
a)
22%
b)
10%
c)
12%
d)
$14,600.00
e)
$29,200.00
25.
Charlie has a gross income of $62,000 and takes the standard deduction. What is his effective tax rate? Round to nearest hundredth.
a)
11.56%
b)
$5,481.00
c)
$47,400.00
d)
$62,000.00
e)
10.00%
100 %
