Taxes Unit Test

Front

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

Back

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

Front

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

Back

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

Front

Which form will determine how much money is withheld from your paycheck for taxes?

Back

W-4

Front

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

Back

401(k) contribution

Front

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?

Back

What state do you live in?

Front

What is Juanita's approximate net pay if she earns $12/hour for 50 hours a month with withholdings of Social Security (6.2%), Medicare (1.45%), and federal income tax (10%)?

Back

$600

Front

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.

Back

Mr. Khan is filing as married filing jointly

Front

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? 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

Back

Complete a W-4 form

Front

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.?

Back

I-9

Front

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 earned about $117,000 over the year based on the total of her 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

Back

James paid state income taxes of $1,189.90