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Reduced 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?
National parks and space exploration
Public transportation and military
Social Security and Medicare
What does the term "withholding" mean in reference to your paycheck?
The amount you owe to the IRS at tax time
The total salary, including bonuses and commissions
The amount deducted for taxes, health insurance, and retirement
When do you start paying income taxes?
After receiving an IRS notification
When you earn above the minimum taxable income
At age 18
Why is it important to be careful when completing your 1040 form?
Mistakes can prevent you from future refunds
It determines if you owe additional taxes or receive a refund
Errors can result in incorrect tax withholding in future paychecks
Which tax system requires higher earners to pay a higher percentage?
Progressive
Proportional
Proportional
You just started your first job. Which form determines how much tax is withheld from your paycheck?
1099
W-4
W-2
What correctly defines taxable income?
Always equal to or greater than gross income
The sum of all income earned
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
Your total income
Your state of residence
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?
$750
$650
$800
Which statement about a W-4 form is TRUE?
It is used to file tax returns
It reports yearly earnings
It determines paycheck tax withholding
What tax form verifies work eligibility in the U.S.?
1099
W-4
I-9
What is it called when you overpay taxes and the government owes you?
Credit
Refund
Withholding
Which of these statements about e-filing tax returns is TRUE?
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 will receive a W-2
Leo can file their own tax return
Leo must pay self-employment tax
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 must file taxes
Leo will receive a W-2
What is the difference between tax deductions and tax credits?
Deductions lower taxable income, credits reduce tax owed
Deductions apply to business expenses only
Credits apply to all taxpayers, deductions do not
Which statement about the W-2 form is TRUE?
It includes investment income
You receive one W-2 per employer
It reports all earnings from multiple jobs on one form
Jamie worked in Texas but moved to Oregon in September. What tax return must they file?
Only a federal return
Federal and Oregon state returns
Federal and Texas state returns
What is the difference between tax avoidance and tax evasion?
Avoidance applies to single incomes, evasion to multiple
Avoidance is legal, evasion is illegal
Avoidance is requesting a tax extension, evasion is not filing
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
Their parents get their refund
The IRS fines them $75+
What is the tax deadline, and what happens if you miss it?
June 1; you get automatic leniency
December 31; you cannot file late
April 15; you can request an extension
If someone earns $45,000 annually and falls in a 22% tax bracket, what does that mean?
They owe 22% regardless of deductions
All $45,000 is taxed at 22%
Only a portion is taxed at 22%
Which of the following is an example of discretionary government spending?
National defense
Social Security
Unemployment benefits
What determines whether you should itemize deductions or take the standard deduction?
Which results in the lower taxable income
The standard deduction is always better
Only itemizing is allowed for single filers
Which tax form should a freelancer earning $50,000 use?
W-4
1099
W-2