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WorksheetsEverfi Final Test (Taxes & Financial Awareness)
Total questions: 75
Worksheet time: 1hrs 15mins
Jaiden, Blake, and Michael are learning about taxes in school. Their teacher asks them which services their taxes help fund and that they benefit from now. Which of the following should they choose?
Public schools, emergency services, and roads
Social Security, investments, and the military
Roads, Social Security, and education
Military, stock market access, and internet
Kiara and Michael are learning about different types of taxes in their social studies class. They want to know which tax provides income for retirees and people with disabilities. Which tax should they learn about?
Social Security tax
Federal income tax
Property tax
State and local taxes
Gabe and Rylan are preparing their taxes and want to understand the difference between a tax deduction and a tax credit. How is a tax deduction different from a tax credit?
Deductions are direct payments to the IRS; credits are refunds.
Deductions reduce your taxable income; credits directly lower what you owe.
Deductions only apply to business expenses; credits only to personal ones.
Deductions are for high-income earners only; credits are for everyone.
Dominik and Kaylee have both kept all their receipts for the year. How should they choose between the standard deduction and itemizing?
Choose the standard deduction because it is more precise.
Pick whichever gives them the larger deduction.
Use itemized deductions since they have their receipts.
Check their tax bracket to decide.
Seth is getting ready to file his taxes this year. What documents should he gather before starting the process?
Spreadsheets showing all your financial accounts
Details of any stocks or bonds purchased last year
Proof of income and receipts for possible deductions
Receipts from every purchase made during the year
Langston just finished his federal return and is expecting a refund. What are the last two steps before he is done?
Have the person claiming him as a dependent sign his return.
Send a copy to his bank and to his guardian.
He must have made a mistake—redo the whole return.
File state taxes and choose a refund method.
Kaylee is considering different types of work. She wants to take on projects for various companies without committing to a single employer long-term. Which option best explains the type of work Kaylee is interested in?
Jobs done remotely from any location
Jobs based on internet data use
Temporary job placements by an agency
Short-term, freelance or contract work
Madison is working as a gig worker, while Logan is a full-time employee at a company. How is tax withholding different for Madison compared to Logan?
Gig workers’ pay does not have taxes withheld.
Gig workers do not pay federal taxes.
Full-time workers have lower tax rates.
Gig workers always pay less in taxes.
Kiara recently started working as a gig worker, driving for a rideshare company. Why does Kiara have to pay taxes every three months?
Employers set payment schedules for workers.
Since no taxes are withheld, quarterly payments help avoid a large bill.
Gig workers don’t receive steady pay, so quarterly is easier.
To combine taxes with union fees.
Jaiden recently learned about the Earned Income Tax Credit (EITC) while preparing his taxes. Why might Jaiden claim the EITC?
So the government can track wage data.
To help improve community funding.
So employers know if they’re paying fairly.
To lower their taxes if they qualify.
Jaiden lives with his aunt all year, and she pays over half of his expenses. What else is required for her to claim him as a dependent?
She must be his legal guardian.
She needs to drive him to school and buy gas.
He must be enrolled full-time in school.
She must provide food and make dinner.
Madison is a working parent who pays for childcare so she can go to her job. What is one benefit Madison could receive by claiming the Child and Dependent Care Tax Credit?
It improves public services like schools and healthcare.
It decreases the overall taxes the household owes.
It helps with applying to college and scholarships.
It makes tax filing quicker and cheaper.
Brayden received stock dividends from a company he invested in. Why are these stock dividends considered taxable income?
They split your stock, doubling your returns.
They are interest you earn on stocks.
They are payments based on how well the company performs.
They are based on dividing your income by your tax rate.
Madison received a form from her bank called IRS Form 1099-INT. What information is reported on this form?
Interest earned from your bank account
Money made from selling stocks or crypto
Dividend payments from a savings account
Total value of all financial accounts
Courtney, Jacob, and Kaylee used crypto to make various transactions throughout the year. What must they report on their taxes?
Selling crypto and using it for purchases.
Everything except when they first bought it.
Only when they made a profit.
Only when they converted it into U.S. dollars.
Abby received a Form 1098-T from her university. What does this form show?
Tuition and educational payments made
Taxes paid on student loans
All your loans and financial aid
A university’s tax-exempt status
Kaylee wants to deduct dorm supplies such as bedding and cookware. Why can’t she?
The items aren’t owned by her college.
They were purchased too long ago.
Her parents paid for them.
They’re not essential for education.
Christopher is a student, makes under $30K, and is a dependent. Can he claim education tax benefits?
Yes, because he is a full-time student.
Yes, if the costs are directly tied to his education.
No, because his parents can claim the credit instead.
No, because he earns too much.
Chace and Cecile are getting ready to file their taxes for the first time. They are considering using tax software. What is the main advantage of using tax software to file taxes?
It simplifies the process and reduces errors.
It allows you to avoid paying any taxes.
It eliminates the need for any documentation.
It guarantees a larger refund.
Logan is 15 and earned $1,450 at his job last summer. Should he file a tax return?
No, because he didn't earn enough.
No, because you have to be 16 or older to file taxes.
Yes, because he may get a refund.
Yes. You must file taxes even if you didn't earn enough.
Kiara is filling out her tax return and wants to reduce her taxable income. She financially supports her younger brother and is considering claiming him on her tax return. What is the best word to describe someone like her brother, whom she can claim to lower her taxes?
Dependent
Taxpayer
Beneficiary
Claimant
Erick and Kaylee have invested in a company. Every few months, they receive money from the company's profits, which is paid out to them as shareholders. What is the best word to describe this payment?
interest
revenue
capital gain
dividend
Jayda works at a local store and receives a salary for her work. What is the best word to describe the type of income Jayda is earning?
profit income
revenue income
dividend income
earned income
Kaylee receives her monthly paycheck and notices that a certain amount is deducted by the federal and state governments before she gets her take-home pay. What is the best word to match this type of tax?
Property tax
Sales tax
Income tax
Payroll tax
Madison is filing her taxes this year. She does not have enough expenses like medical bills or donations to itemize her deductions. What is the best word to describe the standard dollar amount that reduces her taxable income in this situation?
standard deduction
itemized deduction
tax credit
exemption
Naomi just bought her first car and is considering whether to purchase auto insurance. What is the main purpose of having auto insurance?
To protect yourself against unintentional costs and financial losses.
To be able to legally drive a car with other passengers across the U.S.
To get out of paying any money out of pocket in case you get in an accident.
To elect a cost-saving premium so you can save the most on your policy.
Gabe's car was stolen, and he did not have auto insurance. What would happen in this situation?
Your car loan institution would be responsible for replacing your car.
You would still have to pay off your car loan in full.
The car dealership where you purchased your car would replace it.
You would not be required to pay the remainder of your car loan.
Michael caused a minor accident when he hit another car. Michael's insurance company said he needed to pay $500 before they could pay the claim. What does the $500 most likely refer to in this insurance policy?
His comprehensive insurance
His homeowners insurance
His health care copay
His auto insurance deductible
While driving, Madison accidentally crashes her car into her neighbor's fence, causing damage to the property. What type of car insurance would Madison need to cover the damage to her neighbor's property?
Comprehensive insurance
Bodily injury liability
Property damage liability
Collision insurance
Logan's roof was recently damaged by a hurricane. Luckily, he has homeowners insurance and files a claim that is approved. What will this insurance help him do?
His homeowners insurance will help him pay the costs of his roof repair.
His homeowners insurance will help him start a neighborhood cleanup project.
His homeowners insurance will help cover any damage to his car.
His homeowners insurance will pay 70 percent of his salary for up to 6 months.
Cecile is 25, lives alone in an apartment, and works as a freelance developer. Why should she consider purchasing short-term disability insurance?
So she will have monetary protection in case she is unable to work due to illness or injury.
So she will not have to purchase additional health insurance for work-related injuries.
So she will not have to increase her life insurance coverage over the next 10 years.
So she will have rental reimbursement coverage in case she can no longer afford her apartment.
Brianna is deciding between putting her savings in a regular savings account or a Certificate of Deposit (CD) at her bank. What is a primary reason the bank can offer her a higher interest rate on a CD compared to a regular savings account?
CDs require you to pay a monthly maintenance fee.
You can withdraw your money at any time without penalty.
Your funds are locked in for a specific period, reducing the bank's risk.
The interest is paid out only if you open multiple accounts.
Madison and Steven are both new to earning and saving money. They don't have much money to open an account. The best savings option for them would be (a) .
Kaylee just got her learner's permit and can't wait to buy her first car. She received a large sum of money for her birthday and put it in an account to help it grow. She opened an account that required a large initial deposit, paid a high interest rate, and allowed her easy access to her money. What kind of account did Kaylee open?
Savings Account
Money Market Account (MMA)
Certificate of Deposit (CD)
Checking Account
Kyla just received her first paycheck from her new job. She noticed that some money was taken out before she got paid. What is withholding tax?
Money an employer deducts from an employee's wages to pay to the government.
Money that is used to pay for an employee's health insurance benefits.
Money that is used to contribute to an employee's retirement 401(k) plan.
Money that the employee receives after deductions are taken out of a paycheck.
Abby works as an administrative assistant. Her earnings before taxes are $1,840 biweekly. What does the $1,840 represent?
Her net pay earnings
Her gross pay earnings
The amount she pays for FICA tax
Her standard deduction
Mariah has been working at her company for several years and has a 401(k) retirement plan. What does it mean when the money in Mariah's 401(k) is vested?
Mariah can keep the money her employer contributed, even if she leaves her job.
Mariah will not have investment gains in her employer-sponsored retirement plan.
Mariah will never have to pay taxes on her employer-sponsored retirement plan.
Mariah can withdraw her money at any time without a penalty fee from the IRS.
Caroline just started a new job. She earned $1,900 for two weeks of work, but the amount on her paycheck was only $1,100. What is the most likely reason this occurred?
She did not account for withholding taxes or deductions.
She chose not to fill out a W-4 form when she started her job.
She declined to participate in the company's 401(k) plan.
She declined health insurance coverage.
When Trystian starts a new job, her employer asks her to fill out a W-4 form. Why does Trystian need to complete this form?
To opt in to employer-sponsored benefits such as health insurance
To document how much money should be withheld from your paycheck
To agree to a vesting schedule for the company's 401(k)
To determine your gross pay on your pay stub
Christopher and Kaylee are planning to create a budget for their monthly expenses. What should they prioritize when making their budget?
Future earnings
Career path
Credit report
Needs and wants
Jayda just received her monthly allowance. She wants to manage her money wisely. What does it mean if Jayda decides to "pay herself first"?
Pay down debt before doing any spending.
Put money in your savings account before you pay other expenses.
Split your money according to how much you want to spend on each bill or expense.
Spend your money on your wants before you spend on your needs.
Courtney and Ernesto want to manage their finances better. They are considering using the envelope method, a notebook and pencil, and online budgeting software. These are all tools to:
plan your future
estimate your unexpected expenses
track your spending
lower your current expenses
According to the 50-30-20 rule, 50% of Peter and Ashleigh's income should be spent on (a) .
Mariah wants to start a budget. She plans to use the 50/30/20 method. She is categorizing her expenses. Paying for her insurance should be categorized as (a) .
Your favorite cousin Briar's birthday is coming up, and you would like to gift her some money from your checking account. What is the benefit of gifting money via a check?
It is better because you get to earn interest.
It is safer because you can trace the transaction.
It is faster because the money will be available instantly.
It is cheaper because it has a flat fee per transaction.
Alejandro realized that he had forgotten his wallet when he was about to pay at a store. He only has his smartphone with him. How can he make a payment using money from his checking account?
He can use a mobile payment app with his phone.
He can write a check with his mobile banking app.
He can send his checking account number via text.
He can show a picture of his debit card on his phone.
Using his mobile banking app, Michael can (a) .
Grace wants to deposit a check using her mobile banking app. To do this, she must __________.
check her interest rate
have more than one account
upload pictures of her signed check
mail the check to her financial institution
Anika is at a store and tries to buy groceries with her debit card, but she doesn't have enough money in her checking account. When does overdraft protection help Anika cover her purchase?
when you lose your debit card
when you don't have enough funds
only if you are investing your money
only if you are paying with a mobile payment app
Mia is shopping for a new laptop. She compares prices, reads reviews, and checks for warranties before making a decision. Why should Mia strive to be an informed consumer (a) ?
To make better purchasing decisions
To avoid scams
To save money
To understand product quality
Grace is shopping for clothes online and reads two reviews of a clothing store. Which review should she trust more, and why?
Review A states: “All 5 of the shirts were high quality but small. Order a size up.” (verified purchase)
Review B states: “I love everything from this site. Don’t miss out on their great sales.” (sponsored review)
Review A is more trustworthy because they gave more details about their purchase.
Review A is more trustworthy because it was a verified purchase.
Review B is more trustworthy because they let you know about sales that can save you money.
Review B is more trustworthy because the company spent money paying them to leave a review.
Mia is considering using a credit card to make her purchases. Which of the following statements accurately describes the benefits and risks she should be aware of?
Credit cards come with fraud protection, but credit card numbers can be copied by identity thieves.
While credit cards are accepted almost everywhere, they put you at a higher risk of being overcharged at the register.
Credit cards allow you to pay for items later, but may cause you to miss out on better deals.
Credit cards allow you to spend as much as you want, but are not accepted for most transactions.
Grace and Lily are planning to buy new school supplies. Which of the following are things that skilled consumers like them would do?
Research before buying, buy only from clearance sales, avoid using credit, consider unit prices.
Research before buying, buy only what you need, consider unit prices, choose the best payment method.
Buy only what you need, shop locally, avoid using credit, buy only from clearance sales.
Buy only from clearance sales, pay in cash, consider unit prices, buy only local goods.
Ethan wants to buy a new pair of headphones. What is a good way for him to make an informed decision about his purchase?
Read the product descriptions and reviews online.
Buy the lowest-priced item.
Buy the highest-priced item.
Buy only from the clearance section.
Kai is deciding which product to buy online. (a) are more reliable because the reviewer isn't being paid for a positive review.
Verified purchaser reviews
Sponsored reviews
Reviews from the manufacturer
Reviews from the company selling the product
Elijah is deciding whether to pay for his groceries with cash or a credit card. What is a risk of using cash?
Paying more for purchases
Not having fraud protection
Not being able to shop in stores
Paying interest on purchases
Which of the following best describes a loan?
A type of insurance coverage for unexpected losses
A borrower promises to repay money to a lender
A government grant for education
A tax deduction for mortgage interest payments
Margo wants to purchase a new car. She doesn’t have enough savings to cover the cost, so she decides to look into loans from her bank. How can taking out a loan help Margo with her car purchase?
It can help by reducing her total amount of debt.
It can help by not requiring any immediate down payment.
It can help by spreading out the expense over time.
It can help by having no impact on her credit score.
Priya is considering taking out a loan to buy a car, while Emma is thinking about getting a loan to pay for a vacation. Which best describes the difference between the types of loans they might get?
Secured loans require collateral; unsecured loans do not.
Secured loans have higher interest rates than unsecured loans.
Secured loans do not appear on your credit report, while unsecured loans are reported.
Secured loans have more flexible payment plans than unsecured loans.
Elliott renovates his home using a loan that requires him to sign over the title to his car if he does not pay as promised. This type of loan is called a (a) .
James is considering taking out a loan to buy a car. He is comparing different loan terms to see how they affect the cost of credit. How do loan terms affect the cost of credit?
Longer loan terms have lower monthly payments and lower interest.
Shorter loan terms have higher monthly payments and lower overall interest.
Loan terms are based on your pay schedule and how often you get paid.
Loan terms only apply to loans with collateral and do not apply to those without collateral.
Aisha needs a loan to finance her latest startup. She wants a loan with the lowest overall interest cost. She is considering a 3-year loan with an 8% fixed interest rate or a 5-year loan with a 6% fixed interest rate. Why would Aisha choose the 3-year loan?
It has a lower total cost.
It has a smaller monthly payment.
It has a lower interest rate.
It has a higher loan amount.
A lender offers Frank a high-interest loan based on his earnings at work. He’ll have to pay it back quickly, within the next month. Frank experienced a (a) type of predatory loan offer.
Emery applies for a loan online to help cover living costs while in college. Later, she notices her payments aren’t impacting the balance much. Looking closer, she finds extra fees in the agreement. Emery experienced a predatory loan offer involving (a) .
Sophia is exploring ways to pay for college. The type of financial aid that is considered "free money" that she doesn't have to pay back is (a) .
What is the main benefit of taking out a federal student loan instead of a private loan?
You can defer paying your loan until 5 years after graduation.
You may qualify for loan forgiveness after you graduate.
You will have a higher interest rate for a federal student loan.
You can pay the principal down faster on a federal student loan.
When do you need to apply for the Free Application for Federal Student Aid (FAFSA)?
The year before college and every year you attend
Two years before college and every year you attend
Once, after you have been accepted into college
Once, after you have completed your first semester
Rosa is getting ready to fill out the FAFSA. She will need the (a) to fill it out.
Individual tax returns
High school transcript
Driving record
Most recent pay slip
Marcus is a high school senior in Atlanta. He plays baseball and is president of the mock trial club. He would like to major in political science in college and become a lawyer. Which of these scholarships would he be qualified to apply for?
City of Atlanta basketball scholarship
Teach for America student scholarship
American Bar Association law scholarship
Literary Bard Society student scholarship
A positive return on investment for education happens when _______________.
your earnings potential is higher than the cost of your education
you calculate earnings after working for one year after college
you attend a public university and do not take out loans
you use federal student loans to attend a private college
If your earnings potential is higher than the cost of your higher education, you will have a _____.
negative return on investment for higher education
neutral return on investment for higher education
positive return on investment, depending on your major
positive return on investment for higher education
(a) is something to consider when trying to get a positive return on investment for higher education.
Jobs and careers that require degrees or certificates generally _____ jobs that require little or no training.
pay about the same amount of money as
pay more money than
have fewer responsibilities than
earn less money than
The total cost of attending a university includes _____ .
tuition, housing, food, books, and other costs
student loans and federal grants
tuition, scholarships, grants, and loans
scholarships, grants, and other forms of financial aid
Carol became an accountant by starting her training at a community college and transferring to a bachelor's degree program at her local public university. How likely is it that she will have a positive ROI?
Very likely, because attending college guarantees a job after graduation.
Not at all likely, because she did not attend a four year college for all four years.
Very likely, because she spent less money the first two years of college and is currently employed.
Not at all likely, because she is not in a profitable career field.
