Taxes Review

Mandatory government spending includes which of the following?

• 1. Infrastructure and science

• 1. Social Security and Medicare

• 1. Healthcare and military

• 1. Education and agriculture

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

• 1. How much you are going to owe the government when you file your annual tax return

• 1. The amount of your paycheck that you are NOT being taxed on

• 1. How much you earn and includes salary, bonus and commissions

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

Why is it important to be extremely careful when completing your 1040 form?

• Mistakes on your 1040 form make you ineligible for employment during the next year

• Making a mistake will disqualify you from receiving future refunds

• The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government

• Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward

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

• 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

• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

• You need to file your tax return by the end of the calendar year (typically December 31st)

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?

• 1. I-9

• 1. W-2

• 1. W-4

• 1. 1040

Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?

• 1. Social Security

• 1. Medicare

• 1. 401(k) contribution

• 1. Federal income taxes

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.?

• 1. I-9

• 1. 1099

• 1. 1040

• 1. W-4

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.

• 1. withholding

• 1. direct deposit

• 1. deduction

• 1. refund

What was the net (or take-home) pay for this employee for this pay period?

• 1. $335.10

• 1. $400.00

• 1. $2,680.80

• 1. $3,200

1. How much did this person pay towards Medicare in this pay period only? 
   

• 1. $44.50

• 1. $52.20

• 1. $5.80

• 1. $24.80