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Personal Finance Chapter 10 - Taxes

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which form is used to calculate how much income tax is withheld from your pay?

a)

Form W-4

b)

Form 1099

c)

Form 1098

d)

Form W-2

2.

____ is your total pay before taxes and withholdings are taken out.

a)

Passive Income

b)

Gross Income

c)

Net Income

d)

Earned Income

3.

What percentage of their income should a self-employed person set aside for taxes?

a)

30-35%

b)

20-25%

c)

15-20%

d)

25 - 30%

4.

What federal payroll tax goes toward Social Security and Medicare?

a)

FACO

b)

FICO

c)

FICA

d)

FOCA

5.

The total amount the U.S. owes to other countries and companies called what?

a)

National tax

b)

National debt

c)

Wealth tax

d)

Deficit spending

6.

April 15 of every year - the usual deadline to file your taxes - is also called what?

a)

Tax Day

b)

Due Day

c)

Equinox Day

d)

Deadline Day

7.

What is the date that employers have to send the W-2 out to employees?

a)

January 30th

b)

February 1st

c)

None of these dates are correct

d)

January 31st

8.

Each year taxpayers submit a(n) ___ to the IRS with the goal of getting as close to zero as possible.

a)

None of the above

b)

W-4

c)

tax return

d)

Form 1099

9.

Due to the 2018 tax reforms, most tax filers can just take the ____ when filing their taxes.

a)

No deductions

b)

Wealth Deduction

c)

Itemize Deductions

d)

Standard Deduction

10.

The taxes you pay for snacks and other items at a gas station are examples of ____.

a)

Sales Tax

b)

Gift Tax

c)

Excise Tax

d)

Estate Tax

11.

The 12-month period used for reporting financial activity is known as a(n) ____.

a)

calendar year

b)

paper asset

c)

fiscal year

d)

None of the above

12.

An example of a(n) ____ is the taxes you pay on the fuel you purchase for your car at a gas station.

a)

Income Tax

b)

Excise Tax

c)

Sales Tax

d)

None of the above

13.

If a long-lost relative or friend were to leave you a lot of money, you might have to pay a(n) ____.

a)

Inheritance Tax

b)

Property Tax

c)

Sales Tax

d)

Consumption Tax

14.

Planning to spend more money than you actually have coming in is called ____.

a)

National Debt

b)

Tax Bracket

c)

Net Income

d)

Deficit Spending

15.

The IRS may conduct a(n) ____ of a person's tax return to check the accuracy of the figures.

a)

Tax Liability

b)

Withholdings

c)

Audit

d)

None of the above

16.

If you work and earn money, you will have to pay taxes.

a)

True

b)

False

17.

A fixed, annual rate of pay that doesn't change by working more or fewer hours is called ___.

a)

Hourly wages

b)

Salary

c)

Commission

d)

Passive Income

18.

Renting out property or selling content on a blog are examples of ___.

a)

Active income

b)

Portfolio income

c)

Passive income

d)

Salary

19.

Using online tax software or hiring a tax professional are both good options depending on your situation.

a)

True

b)

False

20.

Always keep your filed taxes for at least three years in case the IRS decides to ___ your tax return.

a)

Review

b)

Submit

c)

Reject

d)

Audit