Module 2- Income and Employment

Generally, _____________ you receive, the higher your lifetime earnings will be. a. the less education b. the more education c. the lower the score on standardized tests d. the higher the score on standardized tests

b

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

a

Which of the following statements is true about taxes? a. Taxes pay for schools first responders and roads. b. Taxes pay toll road fees and office buildings. c. Taxes are only collected by the federal government. d. Taxes are only collected by state governments.

a

How does the government pay for roads, schools, and emergency services? a. They are funded through non-profits. b. They are funded through taxes. c. They are funded through charitable donations. d. None of the above

b

If you have to decide to claim a credit or deduction on your taxes which should you take? a. Claim only deductions since credits are charged to you can can result in big bills later. b. Claim all deductions and credits that you are eligible for since they both can reduce your taxes. c. Only claim credits since deductions reduce the amount of money in your tax refund. d. Claim both since they document how much in taxes you have paid.

b

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

c

Generally, the more education you receive, the ________________ will be. a. lower your lifetime earnings b. lower your electricity bills c. higher your food bills d. higher your lifetime earnings

d

Which of the following is NOT a possible tax or deduction that could be withdrawn from your paycheck? a. FICA b. Overtime pay c. Federal income tax d. Contributions to retirement savings

b

Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year. a. W-9 b. 1040 c. W-4 d. W-2

d

Tax preparation software can help prepare and file your taxes by _________. a. making an appointment with a tax expert for you b. posing questions to collect necessary information c. calculating your taxes based on your savings account balance d. providing you with blank tax forms you can fill out

b

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. They include passwords for tax preparation software. d. These forms report income which needs to be used to file taxes.

d

To file your federal and state taxes you ____________ a. can use tax preparation software for federal taxes, but can't for state taxes b. must prepare different forms for each type of government (if your state requires it) c. can use tax preparation software for state taxes, but can't for federal taxes d. must prepare the same tax forms for both

b

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. disability insurance b. FICA c. healthcare insurance d. matching contributions to a retirement account

b

Deductions and credits can _______ what you owe in taxes each year. a. double b. share with others c. reduce d. increase

c

Each year, you must file ____________________. a. your federal, state, county and town taxes b. only your federal taxes since state taxes get filed every other year c. your federal taxes and state taxes if your state requires it d. only your state taxes since federal taxes are filed every four years

c

The W-4 tax form is used to ___________. a. file your tax return. b. determine how much your gross pay should be. c. tell your employer how much federal income tax to withhold from your paychecks to send to the IRS. d. avoid paying income taxes on your paychecks.

c

What is net pay? a. The amount of money you're paid before all taxes and deductions are taken out of your paycheck. b. The amount of pay earned for the total number of hours worked. c. The amount of money you're paid after all taxes and deductions are taken out of your paycheck. d. Your gross pay plus any bonuses.

c

What is the difference between gross and net pay? a. Net pay is a salary and gross pay is from hourly wages. b. 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. d. Gross pay is after taxes are subtracted but net pay is before taxes are taken out.

c

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer. a. allowances b. pensions c. deductions d. benefits

d