Week 10

Approximately how much does the budget shown by the bar graph above allocate to Agriculture for FY 2019?

$50 Billion

Which of the following deductions that the employee has voluntarily signed up to have deducted? Choose all that apply.

- 401K and other retirement/investment plans - Stock Plan - Union or organizational dues - Health Insurance - Life Insurance

What tax deductions are considered statutory (those mandated by law)?

- Medicare - Social Security - Federal - State

What are some types of taxes that you may pay in your lifetime? Choose all that are correct.

- Property taxes - Income taxes - Social Security taxes - Medicare taxes - Sales taxes

How many allowances did this person choose to claim on this form? (Line 5)

2

How many total allowances did this person list? (Line H)

4

Estate Tax

A Federal Tax on inheritance

Inheritance Tax

A State Tax on inheritance

Tax Credit

A dollar-to-dollar reduction in your actual tax bill

W-2 Form

A form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes

What is a W-4 Form?

A form used by your employer to withhold the correct income tax from your salary

What date indicates the end of the tax year?

December 31

You are not required by law to pay taxes.

False

_________ wages are the amount you are paid for your work before any taxes or benefits are taken out of your paycheck. You will not receive this amount in your bank account.

Gross

Based on the pie chart of Federal Tax Revenue Collections pictured above, what is the largest category that is collected?

Individual income tax and tax withholdings

What is the purpose of the W-4 form?

It is for your employer, so that they can withhold the correct income tax from your salary.

When should you receive your W-2 Form from your employer?

January 31st

A tax deduction is a dollar amount that the IRS allows you to subtract from your adjusted gross income, or AGI, making your taxable income _________________ .

Lower

What withholding status did this person choose?

Married, but withhold at a higher single rate

Paying taxes is a biblical principle. In what book of the Bible does Jesus tell us to render to Caesar what is Caesar's?

Matthew

What are some items that the Federal Government uses citizen tax money to pay for? Choose all that apply.

Medicare Defense Social Security Roads

______ pay is the amount of money you actually get to take home, otherwise known as "take-home pay."

Net

Do the number of allowances a person claims on the W-4 form have to match the number of exemptions that are claimed on their 1040 tax return form?

No, this is simply information your employer needs for withholding purposes.

All of the following people should receive W-2 Forms EXCEPT:

Serena, who is a freelance wedding photographer

Based on the bar graph above that shows spending by the Federal Government, what are the top four categories that require the highest amount of money from the budget?

Social Security Administration Health and Human Services Treasury Defense Military Programs

An Inheritance Tax is a State Tax.

True

Social Security taxes, also known as the "Federal Insurance Contributions Act" tax, provide benefits for retired workers and their dependents and for disabled workers and their dependents.

True

Choose the tax revenue categories that are allocated less than 5% of the budget.

Unemployment taxes Excise taxes Customs taxes

What is the portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state, and local taxes?

Withholding

income tax

a government tax based on a person's personal income

Social Security tax

a government tax used to help fund retirement benefits and disability payments

Proverbs 22:7 says the ___________ is a slave to the __________.

borrower - lender

To determine net pay, you subtract ____________ from _____________.

deductions - gross pay

overtime pay

pay received by a person for work done past their required schedule (usually paid at a higher rate)

regular earnings

pay received for a person's regularly scheduled hours

As a citizen of the United States, you are required to pay _________.

taxes

What two sections make up the "Owe" portion of the pie diagram?

taxes - debt

YTD (year-to-date)

totals for earnings and deductions for the year