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Taxcyle Quiz Review

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the term for all taxable income you receive, including wages, salaries, and tips?

a)

Tax Credit

b)

Gross Income

c)

Filing Status

d)

Dependent

2.

Which term defines the type of tax return an individual will use, primarily based on marital status?

a)

Filing Status

b)

Taxable Income

c)

Exemption

d)

Audit

3.

What form details all 'non-employee' compensation, including for specific jobs like freelancers or contractors?

a)

W-4

b)

1099

c)

Taxable Income

d)

Filing Status

4.

What is the term for the amount of income used to calculate an individual’s or company’s income tax due?

a)

Taxable Income

b)

Gross Income

c)

Exemption

d)

Filing Status

5.

What is the term for an amount subtracted directly from the tax owed?

a)

Tax Credit

b)

Exemption

c)

Filing Status

d)

Gross Income

6.

Which form is completed by an employee to indicate their tax situation to the employer, who then withholds the corresponding amount of taxes from each paycheck?

a)

W-4

b)

W-2

c)

I-9

d)

1099

7.

Which form is primarily used to report annual wages and taxes withheld from an employee’s paycheck?

a)

W-2

b)

1099

c)

I-9

d)

Taxable Income

8.

What is the term for the total income earned before any deductions or taxes are applied?

a)

Gross Income

b)

Taxable Income

c)

Filing Status

d)

Dependent

9.

Which form is used to report non-employee compensation for freelancers or contractors?

a)

1099

b)

W-4

c)

Tax Credit

d)

Filing Status

10.

What is the term for the process of reviewing a filer’s tax return for accuracy and compliance?

a)

Audit

b)

Tax Credit

c)

Filing Status

d)

Exemption

11.

What is the term for the amount of money subtracted directly from the tax owed, reducing the total tax liability?

a)

Tax Credit

b)

Exemption

c)

Filing Status

d)

Gross Income

12.

Which form is used by employers to verify an employee’s eligibility to work in the United States?

a)

I-9

b)

W-2

c)

1040

d)

Tax Credit

13.

What is the difference between gross pay and net pay?

a)

Net pay is before taxes and deductions are subtracted; Gross pay is your take-home pay

b)

There is no difference between gross pay and net pay

c)

Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay

d)

Net pay and gross pay are calculated the same way

14.

You will need to include all of the following information on a W-4 form EXCEPT…

a)

Name and address

b)

Earned income from previous job

c)

Social Security number

d)

Marital status

15.

You were unable to file your taxes before the April deadline and your application for an extension was approved. What month was your deadline extended to?

a)

May

b)

October

c)

December

d)

January

16.

On a pay stub, the amount of money that is left after withholdings is known as…

a)

Gross pay

b)

Net pay

c)

Annual earnings

d)

Wages and tips

17.

Which of the following statements most accurately describes why it’s important to correctly fill out a W-4 form?

a)

It determines how much money is withheld from your paycheck and can result in under or overpayment of taxes if filled out incorrectly

b)

It is a legally binding contract between you and your employer that determines how much they pay you

c)

If you pay the exact right amount in taxes, you receive a tax credit in the following year

18.

Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?

a)

Military and Education

b)

Health and Veterans’ Benefits

c)

Housing and Transportation

d)

Social Security and Medicare

19.

All of the following people can be claimed as a dependent for tax purposes EXCEPT…

a)

A 23 year old college student whose parents pay all of their expenses

b)

A 17 year old high school student with a part-time job whose parents pay for all of their expenses

c)

A 20 year old college student with a paid internship who pays for all of their own expenses

d)

A 25 year old cousin with no job who has lived in your parent/guardian’s house for the last year

20.

What is the purpose of the self-employment tax (SECA)?

a)

To tax self-employed individuals a greater amount than regular employees since they’re more likely to make health insurance claims

b)

To tax self-employed individuals a lesser amount than regular employees since they generally make less money

c)

To tax self-employed individuals an equivalent amount for Social Security and Medicare since FICA taxes aren’t taken out of their paycheck

d)

To tax self-employed individuals a flat amount since they don’t pay federal or state