WorksheetsTake Charge: Unit 8
Total questions: 35
Worksheet time: 18mins
Mandatory government spending includes which of the following?
Infrastructure and science
Social Security and Medicare
Healthcare and military
Education and agriculture
What does the term withholding mean in reference to your paycheck?
The amount of your paycheck that you are NOT being taxed on
How much you are going to owe the government when you file your annual tax return
How much you earn and includes salary, bonus and commissions
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
When do you start paying income taxes?
When you turn 18
When you get a full-time job (part-time does not count)
When you make more than the minimum income requirement
When you are notified by the IRS that you are required to pay federal income taxes
Why is it important to be extremely careful when completing your 1040 form?
Making a mistake will disqualify you from receiving future refunds
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
Mistakes on your 1040 form make you ineligible for employment during the next year
If your only income is salary paid by your employer, which of these statements about filing your taxes is true?
You need to file your tax return by the end of the calendar year (typically December 31st)
If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return
You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date
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
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?
W-4
W-2
I-9
1040
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
Social Security
Medicare
401(k) contribution
Federal income taxes
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT...
How much income did you earn this year?
What type of income did you earn this year?
What state do you live in?
Are you claimed as a dependent on anyone else's tax return?
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?
$120
$500
$600
$700
Which of the statements about this W-4 is TRUE?
Mr. Khan is filing as married filing jointly
Mr. Khan is requesting for an additional $50 to be withheld from his paycheck
Mr. Khan submitted this W-4 two days after he started working at Little Company Inc.
Mr. Khan’s paycheck will have less money withheld from his paycheck since he is claiming a dependent
Which of the following steps is she responsible for?
Determine how much tax to withhold from her paychecks based on W-4 information
Complete a W-4 form
Send withholding amounts to the federal government
Complete a W-2 form
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
1099
1040
W-4
Which of the following statements about this W-2 form is true?
Avia Consulting will use this W-2 to file their 1040 form James paid state income taxes of $1,189.90
James earned about $117,000 over the year based on the total of their Wages, Social Security wages, and Medicare wages
James paid state income taxes of $1,189.90
James works in the same city that Avia Consulting is based in
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a ________.
withholding
direct deposit
deduction
refund
How much did this person pay towards Medicare in this pay period only?
$5.80
$24.80
$44.50
$52.20
How frequently is this employee paid?
Daily
Every other week
Weekly
Monthly
What was the net (or take-home) pay for this employee for this pay period?
$335.10
$400.00
$2,680.80
$3,200
Your friend Laila is talking to you about the benefits of tax filing websites. Which of the following is true?
Filing your taxes using a website is always free of charge
You are guaranteed a higher refund than if you were to use a paper form or hire a professional
If you owe money to the IRS, you receive a discount if you e-file using a tax filing website
You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online
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...
Jessica is required to file an income tax return
Jessica should expect to receive a W-2 in January
Jessica is required to pay a 15.3% self-employment tax
Jessica can file her own tax return even though her parents are claiming her as a dependent
Which of the following describes what a "dependent" is for tax purposes?
A child or adult that you support financially
Someone who is temporarily disabled
An adult who financially supports you
Someone who is a full-time student under the age of 30
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will receive a refund
They will owe a payment to the IRS
They will be audited
They will be charged with tax evasion
Which of the following statements about the W-2 form is TRUE?
A W-2 lists all the money you earned in cash over the last year
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
You need a separate W-2 form from EACH of your employers in order to file your taxes
The W-2 includes information about the interest you earned from your investments
Akshay worked at a cafe while he was a college senior in Boston, Massachusetts. After graduating in June, he moved back to his home in California and started a full-time job in September. Which of the following statements is true?
Akshay will need to file only a federal tax return
Akshay will need to file a federal tax return and a state tax return for Massachusetts
Akshay will need to file a federal tax return and a state tax return for both Massachusetts and California
Akshay will need to file a federal tax return this year and file state tax returns the following year
All of the following people would be required to file a tax return EXCEPT...
Janet, who earned $28,200 but was paid entirely in cash
Max, whose total income from three separate part-time jobs was $9,500
Isaiah, who owns his own business and generated an income of $7,000
Dani, who is a cafe barista and earned 18,000inwagesand 250 in tips
What will happen if Marquis doesn't file taxes in April?
The IRS will refund his $200 directly to him
The IRS will refund his $200 to his parents
The IRS will fine Marquis $75 or more for not filing taxes
Nothing will happen, but Marquis will miss out on his potential refund
Briefly explain the difference between discretionary and mandatory government spending.
Discretionary spending is set each year by Congress through the budget process, while mandatory spending is required by existing laws and entitlement programs regardless of annual budgets.
Mandatory spending is chosen annually by Congress, while discretionary spending is permanently set by law.
Discretionary spending covers entitlement programs like Social Security and Medicare, while mandatory spending funds agencies like the National Park Service.
Mandatory spending only funds defense, while discretionary spending only funds social programs.
What is the deadline to file your tax return, and what can you do if you know you will miss that deadline?
File by April 15 (or the next business day if it falls on a weekend/holiday), and submit an extension request to extend the filing deadline.
File by June 30, and ask the IRS to waive penalties by phone.
File by March 1, and delay payment until next year without an extension.
File by December 31, and no action is needed if you miss it.
Give two reasons why someone would go to a tax professional (rather than using tax filing software or using the paper forms) to file their tax return.
They have complex finances (such as self-employment income, investments, or multiple forms) and want expert guidance.
They want personalized advice to identify eligible deductions and credits.
They want a refund faster because professionals can pay the IRS to speed it up.
They hope to avoid paying any filing fees entirely.
They prefer not to keep any records and want the preparer to do everything without documentation.
Jill is 16 years old and worked at her local grocery store over the summer earning $5,600. Is Jill legally required to file a tax return? If not, should she file anyway?
She is not required because her earned income is below the filing threshold; she should file if taxes were withheld to claim a refund.
She is required to file because anyone with any earnings must file.
She is not required and should never file unless she becomes self‑employed.
She is required to file because she is under 18.
List two things the federal government spends your tax dollars on that you benefit from.
National defense and Medicare
Private company dividends and personal bank accounts
Social Security and student financial aid programs
Professional sports team salaries
Individual retirement accounts managed by the IRS
Do I need to file taxes this year?
You must file if your income is at or above the filing threshold for your status, or if you need to claim a refund of withheld taxes.
Everyone must file a tax return every year regardless of income.
You only need to file if you had a full‑time job.
You only need to file if taxes were withheld from your paycheck, never for other reasons.
If I do, what is the process like?
Gather your tax documents (such as W‑2s/1099s), choose a filing method (e‑file or paper), complete Form 1040 and any state forms, and submit by the deadline.
Call the IRS to verbally report income and wait for a confirmation number.
Mail your last pay stub to the IRS; no forms are required.
Deposit your refund first, then file your return later if requested.
Determine if Alice needs to file taxes this year and explain your reasoning. Context: Alice is a full‑time college student who earned $4000 working at the campus bookstore last calendar year and also earned $11,500 from a part‑time cashier job that began in February.
Yes. Her total earned income is $15,750, which exceeds the filing threshold for a single filer, so she must file.
No. Students are automatically exempt from filing taxes.
No. Income from campus jobs does not count toward filing thresholds.
Yes, but only because she worked two different jobs; income amount does not matter.
Your friend Alice is a full‑time college student, earned $4,000 working at the campus bookstore over two semesters last calendar year, and also got a part‑time job as a cashier in February, earning $11,500. Alice asks, “Do I need to file taxes this year? If I do, what is the process like?” If you conclude that Alice does need to pay taxes, explain what forms she will need, what the deadlines are, and what method you recommend she use to file her taxes.
She should use Form 1040 with her W‑2s, file by April 15 (or the next business day), and e‑file is recommended for speed and accuracy.
She should mail a handwritten letter by March 1; no IRS forms are required.
She should use Form W‑4 to file her taxes by December 31 and must file on paper.
She should only complete a FAFSA form and wait for the IRS to contact her if needed.
Your friend Alice is a full‑time college student, earned 4000 working at the campus bookstore over two semesters last calendar year, and also got a part‑time job as a cashier in February, earning $11,500. Determine if Alice needs to file taxes this year and explain your reasoning.
Yes. Her total income is $15,750, which meets or exceeds the filing threshold for a single filer, so she must file.
No. Because she is a student, she is exempt regardless of income.
No. Earnings below $20,000 are always exempt.
Yes, but only if she itemizes deductions.
