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Income Taxes Quiz

Total questions: 20

Worksheet time: 15mins

Name
Class
Date
1.

Mandatory government spending includes which of the following?

a)

Infrastructure and science

b)

Social Security and Medicare

c)

Healthcare and military

d)

Education and agriculture

2.

What does the term "withholding" mean in reference to your paycheck?

a)

The amount of your paycheck that you are NOT being taxed on

b)

How much you are going to owe the government when you file your annual tax return

c)

How much you earn and includes salary, bonus and commissions

d)

How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement

3.

If your only income is salary paid by your employer, which of these statements about filing your taxes is true?

a)

You need to file your tax return by the end of the calendar year (typically December 31st)

b)

If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

c)

You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date

d)

You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money

4.

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?

a)

W-4

b)

W-2

c)

I-9

d)

1040

5.

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…

a)

How much income did you earn this year?

b)

What type of income did you earn this year?

c)

What state do you live in?

d)

Are you claimed as a dependent on anyone else's tax return?

6.

Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?

a)

$120

b)

$500

c)

$600

d)

$700

7.

Which of the statements about this W-4 is TRUE?

a)

Mr. Khan is filing as married filing jointly

b)

Mr. Khan is requesting for an additional $50 to be withheld from his paycheck

c)

Mr. Khan submitted this W-4 two days after he started working at Little Company Inc.

8.

Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for?

a)

Determine how much tax to withhold from her paychecks based on W-4 information

b)

Complete a W-4 form

c)

Send withholding amounts to the federal government

d)

Complete a W-2 form

9.

Aria just got hired for a new job in the U.S. Her employer asks her to fill out a tax form that requires her to provide identification and proves she is eligible to work in the country. What is the name of this form?

a)

I-9

b)

1099

c)

1040

d)

W-4

10.

James received the W-2 form shown above from Avia Consulting for the 2023 tax year. Which of the following statements about this W-2 form is true?

a)

Avia Consulting will use this W-2 to file their 1040 form

b)

James earned about $117,000 over the year based on the total of her Wages, Social Security wages, and Medicare wages

c)

James paid state income taxes of $1,189.90

d)

James works in the same city that Avia Consulting is based in

11.

Benjamin completed his 1040 form and discovered that he had overpaid his taxes. The government now owes him money. This is called a _________.

a)

refund

b)

penalty

c)

deduction

d)

withholding

12.

Mason receives an earnings statement from his employer, ABC Company, for the pay period 2/19/2021 - 2/25/2021. How frequently is Mason paid?

a)

Daily

b)

Every other week

c)

Weekly

d)

Monthly

13.

Jessica is 16 years old and earned $1,100 through her photography side gig. Her parents can claim her as a dependent on their tax return. All of the following statements are true EXCEPT…

a)

Jessica is required to file an income tax return

b)

Jessica should expect to receive a W-2 in January

c)

Jessica is required to pay a 15.3% self-employment tax

d)

Jessica can file her own tax return even though her parents are claiming her as a dependent

14.

Michael fills out his W-4 in a way that does not withhold enough money to cover his tax obligation. What is the most likely outcome after he files his taxes?

a)

He will receive a refund

b)

He will owe a payment to the IRS

c)

He will be audited

d)

He will be charged with tax evasion

15.

Grace worked for two different companies last year. As she prepares to file her taxes, she wonders about the W-2 forms she needs. Which of the following statements about the W-2 form is TRUE?

a)

A W-2 lists all the money you earned in cash over the last year

b)

The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form

c)

You need a separate W-2 form from EACH of your employers in order to file your taxes

d)

The W-2 includes information about the interest you earned from your investments

16.

Which form summarizes the total amount of taxes withheld from your paycheck during the year?

a)

I-9

b)

1099

c)

W-4

d)

W-2

17.

What is the primary purpose of completing a W-4 form when starting a new job?

a)

To claim tax deductions for the year

b)

To prove your eligibility to work in the U.S.

c)

To determine how much tax your employer should withhold from your paycheck

d)

To report your annual income

18.

Which of the following is considered discretionary government spending?

a)

Medicaid

b)

Social Security

c)

National defense

d)

Medicare

19.

Abigail just started a new job and her employer asks her to fill out a W-4 form. What information does Abigail typically need to provide on this form?

a)

Your annual salary

b)

Your employer's tax ID number

c)

Your Social Security number and filing status

d)

Your previous year's tax return

20.

Which of the following is NOT a reason your employer withholds money from your paycheck?

a)

State income tax (if applicable)

b)

Federal income tax

c)

Social Security and Medicare taxes

d)

Personal savings account deposit