Wk 30: EOL: TEST Unit 9 Taxes - Tang Xiong | Library

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2

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

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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

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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

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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

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2

Which tax system requires higher earners to pay a higher percentage?

Progressive

Regressive

Proportional

Proportional

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You just started your first job. Which form determines how much tax is withheld from your paycheck?

1099

I-9

W-2

W-4

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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

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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

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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

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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

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2

What tax form verifies work eligibility in the U.S.?

1040

1099

W-4

I-9

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What is it called when you overpay taxes and the government owes you?

Refund

Deduction

Withholding

Credit

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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

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2

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

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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

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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

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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

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2

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

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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

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2

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

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2

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

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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

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Which of the following is an example of discretionary government spending?

Unemployment benefits

National defense

Medicare

Social Security

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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

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2

Which tax form should a freelancer earning $50,000 use?

I-9

1099

W-4

W-2