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Wk 30: EOL: TEST Unit 9 Taxes

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Last updated 23 days ago
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Mandatory government spending includes which of the following?
Social Security and Medicare
National parks and space exploration
Education and small business grants
Public transportation and military
What does the term "withholding" mean in reference to your paycheck?
The portion of your paycheck that is not taxed
The total salary, including bonuses and commissions
The amount deducted for taxes, health insurance, and retirement
The amount you owe to the IRS at tax time
When do you start paying income taxes?
When you earn above the minimum taxable income
After receiving an IRS notification
When you have a full-time job
At age 18
Why is it important to be careful when completing your 1040 form?
Mistakes can prevent you from future refunds
Errors can result in incorrect tax withholding in future paychecks
Mistakes make you ineligible for employment for a year
It determines if you owe additional taxes or receive a refund
Which tax system requires higher earners to pay a higher percentage?
Progressive
Regressive
Proportional
Proportional
You just started your first job. Which form determines how much tax is withheld from your paycheck?
1099
I-9
W-2
W-4
What correctly defines taxable income?
Always equal to or greater than gross income
The sum of all income earned
Includes all personal expenses and investments
Gross income minus deductions and exemptions
When determining if you need to file a federal tax return, which does NOT matter?
Your type of income
Whether you’re claimed as a dependent
Your state of residence
Your total income
Alex earns $15/hour, working 60 hours monthly. Deductions include Social Security (6.2%), Medicare (1.45%), and federal tax (12%). What is their approximate net pay?
$650
$750
$800
$900
Which statement about a W-4 form is TRUE?
It is only for freelancers
It determines paycheck tax withholding
It is used to file tax returns
It reports yearly earnings
What tax form verifies work eligibility in the U.S.?
1040
1099
W-4
I-9
What is it called when you overpay taxes and the government owes you?
Refund
Deduction
Withholding
Credit
Which of these statements about e-filing tax returns is TRUE?
It is always free
It eliminates the need for professional help
It can involve small fees for online filing
It guarantees a higher refund
Leo is 17 and earns $1,200 from tutoring. Their parents claim them as a dependent. Which is NOT true?
Leo must file taxes
Leo can file their own tax return
Leo must pay self-employment tax
Leo will receive a W-2
Leo is 17 and earns $1,200 from tutoring. Their parents claim them as a dependent. Which is NOT true?
Leo can file their own tax return
Leo will receive a W-2
Leo must file taxes
Leo must pay self-employment tax
What is the difference between tax deductions and tax credits?
Credits apply to all taxpayers, deductions do not
They are the same
Deductions lower taxable income, credits reduce tax owed
Deductions apply to business expenses only
Which statement about the W-2 form is TRUE?
It reports all earnings from multiple jobs on one form
It includes investment income
It lists cash earnings
You receive one W-2 per employer
Jamie worked in Texas but moved to Oregon in September. What tax return must they file?
Federal and Texas state returns
Federal, Texas, and Oregon state returns
Only a federal return
Federal and Oregon state returns
What is the difference between tax avoidance and tax evasion?
Avoidance is requesting a tax extension, evasion is not filing
Avoidance applies to single incomes, evasion to multiple
They are the same
Avoidance is legal, evasion is illegal
Jordan, a high school senior, earned $2,200. Their employer withheld $220 in taxes. What happens if they don’t file?
Nothing, but they miss a refund
They get their $220 back automatically
The IRS fines them $75+
Their parents get their refund
What is the tax deadline, and what happens if you miss it?
December 31; you cannot file late
April 15; you can request an extension
April 30; you must pay penalties
June 1; you get automatic leniency
If someone earns $45,000 annually and falls in a 22% tax bracket, what does that mean?
All $45,000 is taxed at 22%
Their tax rate is 22% every year
Only a portion is taxed at 22%
They owe 22% regardless of deductions
Which of the following is an example of discretionary government spending?
Unemployment benefits
National defense
Medicare
Social Security
What determines whether you should itemize deductions or take the standard deduction?
The standard deduction is always better
Only itemizing is allowed for single filers
It depends on your tax credits
Which results in the lower taxable income
Which tax form should a freelancer earning $50,000 use?
I-9
1099
W-4
W-2