Income and employment

Deductions and credits can _______ what you owe in taxes each year. A. increase B. reduce C. double D. share with others

B. reduce

Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package? A. FICA B. matching contributions to a retirement account C. disability insurance D. healthcare insurance

A. FICA

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck? A. Restaurant tax B. Federal income tax C. FICA D. Contributions to retirement savings

A. Restaurant tax

What do taxes pay for? A. Schools, government departments, roads, and emergency services B. Privately-owned businesses C. Operation of financial institutions D. None of the above

A. Schools, government departments, roads, and emergency services

When you start a new job, you fill out a W-4 form to _________. A. to determine how much federal income tax your employer should withhold from your paychecks. B. file your tax return. C. avoid paying income taxes on your paychecks. D. determine how much your gross pay should be.

A. to determine how much federal income tax your employer should withhold from your paychecks.

Why might preparing taxes be different for people living in different states? A. Everyone must file state taxes but depending on where you live, you may not need to file federal taxes. B. It's not different. All states have the same tax laws. C. Everyone must file federal taxes, but each state has different tax laws. D. State taxes are due January 1st but federal taxes are due April 15th.

C. Everyone must file federal taxes, but each state has different tax laws.

What is the difference between gross and net pay? A. Gross pay is after taxes are subtracted but net pay is before taxes are taken out. B. Net pay is a salary and gross pay is from hourly wages. C. Gross pay is before taxes are subtracted but net pay is after taxes are taken out. D. Gross and net pay are basically the same things.

C. Gross pay is before taxes are subtracted but net pay is after taxes are taken out.

Why is it necessary to have a W-2 or 1099 form when using tax preparation software? A. They show how much you have donated to charities. B. They highlight job performance which can reduce your tax rate. C. These forms report income that needs to be used to file taxes. D. They include passwords for tax preparation software.

C. These forms report income that needs to be used to file taxes.

The W-2 form is a form that tells you _______. A. how much taxes to withhold from your paycheck. B. how much taxes you owe to the federal government. C. how much taxes you've paid in the last year based on how much you've earned. D. how often you will be paid.

C. how much taxes you've paid in the last year based on how much you've earned.

Generally, _____________ you receive, the higher your lifetime earnings will be. A. the lower the score on standardized tests B. the less education C. the more education D. the higher the score on standardized tests

C. the more education