Personal Finance - Unit 1

False, each year

Annual salary refers to the amount of pay to be received each month.

False, not optional

Federal income tax is an optional deduction from your paycheck.

True

Generally, a person cannot claim him or herself as an exemption if he or she is claimed as a dependent on another's tax return.

Answer: 26 52 weeks in a year/2=26

How many times per year are you getting paid if you get paid bi-weekly?

Answer: $2166.67 52,000/12=4,333.33 4,333.33/2=$2,166.67

If my annual pay is $52000, what is my semi-monthly gross pay?

True

In order to estimate your take home pay, you need to factor in the following required deductions; FICA (social security, medicare), state and federal income tax.

False, child support is not taxed

Income that is taxed includes such things as wages, tips, salaries, alimony, and child support.

False

Juan makes $7.25 an hour and works 30 hours a week. His net pay is $217.50

376.23 (7.45*40=298) (7.45*1.5*7=78.23) (298+78.23=376.23)

Kyle earns $7.45 an hour and worked 47 hours this week, what is his gross pay?

Answer: 945.12 472.56*2=945.12

My weekly pay is $472.56, what is my bi-weekly pay?

True

Some types of deductions may be withheld from your paycheck without written consent, for example federal income tax.

Answer: $261 (36*7.25)

Stacy earns $7.25 an hour and she worked for 36 hours, what is her gross pay?

False, 1.5 times the hourly rate

Standard overtime wages are calculated at twice the regular hourly rate.

True

The largest source of revenue is income taxes.

True

To determine your gross pay for a 40 hour work week, you multiply your hourly rate by the number of hours worked.

False, major offense

When comparing tax evasion to a speeding ticket, tax evasion is a minor offense with no penalties.

True

When you purposely do not pay your taxes it is called tax evasion.

April 15

You must file your federal income tax return no later than ____, unless that date falls on a weekend or holiday.

False, does not

Everyone pays the same amount in taxes.

True

A person can be classified as a dependent if they receive half of his or her living expenses from their legal guardian.

True

The amount of money left after all deductions have been subtracted from gross pay is known as net pay.