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

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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

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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

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When do you start paying income taxes?

After receiving an IRS notification

When you earn above the minimum taxable income

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

It determines if you owe additional taxes or receive a refund

Errors can result in incorrect tax withholding in future paychecks

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

Progressive

Proportional

Proportional

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

1099

W-4

W-2

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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

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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

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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?

$750

$650

$800

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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

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

1099

W-4

I-9

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

Credit

Refund

Withholding

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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

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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 will receive a W-2

Leo can file their own tax return

Leo must pay self-employment tax

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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 must file taxes

Leo will receive a W-2

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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

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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

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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

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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

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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+

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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

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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%

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

National defense

Social Security

Unemployment benefits

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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

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

W-4

1099

W-2