Review - Taxes

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

When do you start paying income taxes?

Back

When you make more than the minimum income requirement

Answer explanation

Choose the option that states 'When you make more than the minimum income requirement' as that is when you start paying income taxes.

Front

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.

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

When determining whether you NEED to file a federal tax return, which of the following factors is NOT considered?
- 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

Emma recently filed her 1040 form and discovered she had overpaid her taxes. The amount the government owes her back is called a ________.

Back

refund

Front

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

Back

You can avoid the costs of having to pay a professional, though you may have to pay for e-filing online

Front

What is a "dependent" for tax purposes?

Back

A child or adult that you support financially.

Front

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?

Back

They will owe a payment to the IRS.

Front

Imagine Ethan worked three different part-time jobs last year. Which of the following statements about the W-2 form is TRUE for Ethan's situation? a. A W-2 lists all the money Ethan earned in cash over the last year, b. The total wages Ethan earned from ALL jobs he worked in the previous year appear on ONE W-2 form, c. Ethan needs a separate W-2 form from EACH of his employers in order to file his taxes, d. The W-2 includes information about the interest Ethan earned from his investments

Back

Ethan needs a separate W-2 form from EACH of his employers in order to file his taxes.