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Worksheets

Taxes

Total questions: 24

Worksheet time: 27mins

Name
Class
Date
1.

Mandatory government spending includes which of the following?

a)

Infrastructure

b)

Social Security and Medicare

c)

Healthcare

d)

Education

2.

When do you start paying income taxes?

a)

At age 18

b)

With a full-time job only

c)

When you earn more than the minimum required income

d)

When the IRS notifies you

3.

Why is it important to be careful when filling out your 1040 form?

a)

A mistake will disqualify you from future refunds

b)

The 1040 form decides if you owe taxes or get a refund

c)

Filling it out wrong will change how much tax is withheld from your paychecks

d)

Mistakes make you ineligible for employment next year

4.

If your only income is salary from your employer, which statement about filing taxes is true?

a)

You need to file your tax return by December 31st.

b)

If your employer withholds federal income taxes, you do not need to file a tax return.

c)

You must file your tax return by April 15th or request an extension by then.

d)

You do not need to pay income taxes until April 15th, so ask your employer to wait to withhold taxes.

5.

Which paycheck withholding puts money into a retirement fund you manage?

a)

Social Security

b)

Medicare

c)

401(k) contribution

d)

Federal income taxes

6.

Which of these does NOT affect whether you need to file a federal tax return?

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?

7.

Juanita earns $12/hour and works 50 hours a month. What is her approximate gross pay?

a)

$120

b)

$500

c)

$600

d)

$700

8.

Juanita earns $600 a month and has $100 withheld for taxes. What is her approximate net pay?

a)

$120

b)

$500

c)

$600

d)

$700

9.

What is Gross pay

a)
Total money without taxes taken out
b)
Total money with taxes taken out
c)
Total money
d)
Yucky money
10.

Which statement about Mr. Khan's W-4 is TRUE?

a)

Mr. Khan is filing as married filing jointly

b)

Mr. Khan is requesting an additional $50 to be withheld

c)

Mr. Khan submitted this W-4 two days after starting work

d)

Mr. Khan will have less money withheld since he is claiming a dependent

11.

Which statement 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 as Avia Consulting

12.

If you overpaid your taxes and the government owes you money, that is called a __________.

a)

withholding

b)

direct deposit

c)

deduction

d)

refund

13.

What was the net pay for this employee for this pay period?

a)

$335.10

b)

$400.00

c)

$2,680.80

d)

$3,200

14.

How much was paid for Medicare in this pay period?

a)

$5.80

b)

$24.80

c)

$44.50

d)

$52.20

15.

How often is the employee paid?

a)

Daily

b)

Every other week

c)

Weekly

d)

Monthly

16.

Which of the following is true about using tax filing websites?

a)

Filing your taxes using a website is always free

b)

You are guaranteed a higher refund than using paper forms or a professional

c)

If you owe money to the IRS, you get a discount for e-filing

d)

You can avoid paying a professional, it's more accurate than doing it by hand, but you may have to pay a fee

17.

What is a "dependent" for tax purposes?

a)

A child or adult you support financially

b)

Someone temporarily disabled

c)

An adult who supports you financially

d)

A full-time student under 30

18.

If a taxpayer fills out their forms incorrectly, what is the most likely outcome after filing their taxes?

a)

They will receive a refund

b)

They will owe a payment to the IRS

c)

They will be audited

d)

They will be charged with tax evasion

19.

Which statement about the W-2 form is TRUE?

a)

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

b)

The total wages from ALL jobs appear on ONE W-2 form

c)

You need a separate W-2 from EACH employer to file taxes

d)

The W-2 includes information about interest from investments

20.

Angel worked in Massachusetts during college and then moved to California for a full-time job. Which of the following statements is true?

a)

Angel will need to file only a federal tax return

b)

Angel will need to file a federal tax return and a state tax return for Massachusetts

c)

Angel will need to file a federal tax return and a state tax return for both Massachusetts and California

d)

Angel will need to file a federal tax return this year and file state returns the following year

21.
Pay before deductions and taxes.
a)
Gross Pay
b)
Net Pay
c)
Hourly Rate
d)
Commission
22.

Which of the following is true with regard to gross pay and net pay?

a)

Net pay is gross pay minus savings.

b)

Gross pay is usually less than net pay.

c)

Net pay is gross pay minus deductions.

d)

Net pay is gross pay plus Social Security contributions.

23.

What is the difference between discretionary and mandatory spending

a)
Discretionary spending can be changed yearly, while mandatory spending is required by law and cannot be easily altered.
b)
Discretionary spending is for essential services, while mandatory spending is for non-essential programs.
c)
Mandatory spending is optional, whereas discretionary spending is required by law.
d)
Discretionary spending is fixed by law, while mandatory spending can be adjusted annually.
24.

What is the deadline to file your tax return, and what can you do if you know you will miss that deadline?

a)
April 1st; submit a late fee if you miss it.
b)
May 15th; request a refund if you file late.
c)
March 31st; pay a penalty if you are late.
d)
April 15th; file for an extension if you will miss it.