Unit 2 Earning Income Test Review Fall 2024

Amount of pay earned before any taxes or deductions is called (a)   income

Amount of pay earned after taxes and deductions

(a)  

Which summary income tax form is given to people who earn income through a "normal" job such as working for Apple?

• W2

• 1099

• 1040EZ

• TI-87

What is the purpose of tax forms 1099 and W2?

• Shows summary of income so you can file your taxes

• Tell you how much in taxes you owe

• Calculates Sales Tax for a business you own

• Shows you how much of a refund you should expect

Which tax is paid for by employees and employers and is used to pay for insurance of retired Americans?

(a)  

Which type of worker performs an activity where they make money for on demand work

• Salaried

• Hourly

• Gig

• Social

Which is not an example of a gig economy worker

• Driving for Uber/Uber Eats

• Instacart Shopping

• Selling items on Etsy

• Working for a school district

Which tax is paid when you profit on investments such as stocks, interests, and options contracts?

(a)  

True or false: Long term gains in the stock market are taxed at a lower tax rate than short term gains

• True

• False

Which is a perceived benefit of working immediately after graduating high school?

• High student loans

• Higher income ceiling (you can earn more money)

• Access to an alumni (other college graduates from your college) organization

• Immediate earnings power and savings potential