Worksheetstaxes definitions
Total questions: 40
Worksheet time: 20mins
Which tax form do individuals use to file their annual income taxes?
W-2
1040
W-4
1099
A 1099 form is used to report income for which type of worker?
Full-time employee
Intern
Self-employed worker
Household employee
A 401(k) is primarily used for:
Paying taxes
Saving for emergencies
Retirement savings
Health insurance
True or False: A deduction increases the amount of taxes you owe.
True
False
Who is most commonly claimed as a dependent?
Employer
Coworker
Child
Customer
Discretionary government spending is decided:
Automatically by law
By Congress each year
By employers
By taxpayers
Earned income comes from:
Investments
Gifts
Working a job
Interest
Employer contributions are best described as:
Employee taxes
Money employees pay
Money employers add to benefits
Personal savings
FICA taxes fund which two programs?
Medicare and Medicaid
Social Security and Medicare
Social Security and unemployment
Education and defense
Gross pay is:
Take-home pay
Pay after taxes
Total pay before deductions
Bonus pay only
A household employee works primarily:
In a factory
In a private home
For the government
Online
The I-9 form is used to:
File taxes
Set up retirement
Verify work eligibility
Request a refund
Income taxes are paid to:
Employers
Banks
Federal and state governments
Insurance companies
Mandatory government spending includes:
Parks
Roads
Social Security
Schools
Medicare mainly provides:
Retirement income
Health insurance
Job training
Education funding
Net pay is best described as:
Total earnings
Pay before taxes
Take-home pay
Bonus income
True or False: Pre-tax deductions lower taxable income.
True
False
A refund occurs when:
You owe taxes
You paid too little
You paid too much
You skip filing
A self-employed person:
Works for one employer
Does not pay taxes
Works for themselves
Receives a W-2
Social Security provides:
Student loans
Retirement income
Business grants
Health insurance only
Unearned income includes:
Wages
Tips
Interest
Salaries
The W-2 form shows:
Taxes owed
Tax refunds
Earnings and withholdings
Retirement savings
The W-4 form tells employers:
Where you live
How much to withhold
Your job title
Your pay rate
Withholding refers to:
Saving money
Paying bills
Taxes taken from paychecks
Bonuses earned
True or False: FICA taxes are optional.
True
False
Which form would a freelancer most likely receive?
W-2
I-9
1099
W-4
Which income is earned income?
Dividends
Interest
Paycheck wages
Stock profits
Employer matching most commonly applies to:
Taxes
401(k) plans
Refunds
Deductions
True or False: Gross pay is always higher than net pay.
True
False
Medicare is funded partly by:
Sales tax
Property tax
Payroll taxes
Student loans
Which spending type is required by law?
Discretionary
Optional
Mandatory
Emergency
A deduction does what to taxable income?
Raises it
Lowers it
Eliminates it
Doubles it
True or False: A dependent usually supports themselves financially.
True
False
Net pay appears:
Before deductions
After deductions
Before gross pay
On a W-4
Which program supports retirees and disabled individuals?
Medicare
FICA
Social Security
Medicaid
Unearned income is received:
By working
Without working
From employers
Hourly
True or False: A refund means you still owe taxes.
True
False
Which form verifies legal ability to work in the U.S.?
W-2
W-4
I-9
1040
Which pay amount is shown before taxes are taken out?
Net pay
Gross pay
Refund
Withholding
True or False: Self-employed workers pay both employee and employer taxes.
True
False
