QUIZ: TAXES

Everyone pays the same amount in federal income taxes.

• True
• False

Bill, who is 23 years old and a full-time college student is considered a dependent.

• True
• False

Social Security is an example of mandatory spending by the federal government.

• True
• False

You pay taxes on earned income only.

• True
• False

In the United States, both businesses and individuals pay income taxes.

• True
• False

Federal Income Taxes are a _________________________ tax (the more income you make, the more tax you are expected to pay).

• flat
• progressive
• proportional
• regressive

All of the following are examples of unearned income EXCEPT _________________________.

• interest
• tips
• dividends
• pension

The W-4 form tells _________________________________________.

• the government how much you paid in taxes last year.
• your employer how much to withhold from your paycheck.
• the 3 major credit bureaus know how many dependents you have.
• you how much you paid in taxes last year.

Your financial institution will send you a __________ form if you earned any interest on your investments or savings accounts for the year.

• 1040
• W-2
• 1099
• W-4

Tax Day is the final due date for filing tax returns and traditionally falls on _______________________________.

• April 15th
• December 31st
• October 15th
• January 1st of the next year