Money and Taxes
Which of the following is not a common feature of a financial institution?
Access to investment products
Why is it important to review your bank statements?
All of the above (Detect errors, fees, avoid overspending)
Which of the following could be a part of a benefits package part of a job?
All of the above (Disability, Health, FICA, retirement)
Which of the financial institutions typically have the highest fees?
Brick and mortar banks
Tax preparation software can help prepare & file your taxes by _____.
Calculating your taxes based on your savings & investment accounts balances
Which of the following is not a possible tax or deduction that could be withdrawn from your paycheck?
Contributions to retirement savings
Deductions and credits can _______ what you owe in taxes each year.
Decrease
Your financial institution can't help you if there's a mistake in your account.
False
Your friend Laila is talking to you about the benefits of tax filing software. Which of the following is true?
Filing your taxes using the software is always free of charge
The amount of money you are paid before all taxes & deductions are taken out of your paycheck is called _____.
Gross pay
Investing is best for
Long term financial goals like paying for retirement
All of the following people would be required to file a tax return except...
Max, whose total income from three separate part-time jobs was $9500.
Savings accounts typically offer more interest than what type of account?
None of the above
Which form will determine how much money is withheld from your paycheck for taxes?
None of the above (W-4)
Which savings account will you earn the least money?
One that earns you simple interest monthly
Which of the following statements about savings accounts is false?
Savings accounts allow an unlimited number of withdrawals
Which of the following is false about taxes?
Taxes pay toll road fees
Why is it necessary to have a W-2 or 1099 form when preparing to file your taxes?
These forms report income which needs to be used to file tax returns
Which of the following statements about check cashing companies is false?
They charge low fees
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
They will be audited
What is the purpose of the W-4 form?
To inform your employer of how much federal income tax to withhold from your paychecks
Your employer sends you a _______ form that tells you how much you've made & how much tax you've paid last year.
W-2
If your income is salary paid by your employer, which of these statements about filing your taxes is true?
You must file your tax return by the deadline. (Typically April 15th)
A mutual fund is _____
a type of investment that invests in a mix of different types of investments
Each year, you must file_____.
your federal taxes and state taxes if your state requires it
Which of the following statements is true about education & lifetime earnings?
Generally, the higher the level of education received means the higher the lifetime earnings.
Mandatory government spending includes which of the following?
All of the above
You are starting your first job and are asked to complete some paperwork. Which form will determine how much money is withheld from your paycheck for taxes?
W-4
When do you have to start paying income taxes?
When you meet the minimum income requirement