Unit 8 Quiz Review

Which amendment allowed for the federal government to collect income taxes?

• 14th

• 19th

• 16th

• 7th

Congress passed a law to collect income tax for those making over $800 to help pay for this war (later repealed)

• Revolutionary War

• Civil War

• War of 1812

• Vietnam War

The government introduced Sales Tax to help pay for the high cost of this war:

• Revolutionary War

• Civil War

• War of 1812

• Vietnam War

You make $89,850 a year. Which tax tier will your income put you in AFTER the standard deduction?

• 10%

• 12%

• 22%

• 24%

You make $55,000 a year. What is the first step to computing the amount of tax you owe?

• Add 5,147 to 55,000

• Calculate 12% of 55,000

• Subtract 13,850 from 55,000

• Find excess over 11,000

You make $55,000 a year. What is the second step to computing the amount of tax you owe?

• 1,100 + .12(41150 - 11000)

• 0.10(41,150)

• 5,147 + .22(55,000-44,725)

• 1,100 + .12(55,000-11,000)

Match the following

• Box 5

• Medicare Wages

• Box 16

• Federal Wages

• Box 1

• State Wages

• Box 18

• Social Security Wages

• Box 3

• Local Wages

Match the following

• Box 2

• State Income Tax

• Box 19

• Federal Income Tax Withheld

• Box 4

• Local Income Tax

• Box 17

• Medicare Tax Withheld

• Box 6

• Social Security Tax Withheld

Match the following

• Need to report dividends received

• 1099-DIV

• Withdrawal money from retirement account

• 1099-INT

• Have interest bearing accounts

• 1099-R

• receive payments from the government

• 1099-B

• Sell stocks, bonds through broker

• 1099-G

You earned 10,000 as a freelance writer and got a 1099-NEC. The company that paid you was required to withhold taxes.

• True

• False