Unit 1 Taxes

Aiden worked at the car wash earning $7,500 in wages and $6,800 in tips. His employer reports his tip income. Aiden should file which form in April to report his income from tips? a: 1099 b: I-9 c: W-4 d: W-2

a: 1099

Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage? a: 401k b: Medicare c: Federal Income Taxes d: Social Security

a: 401k

Charlie gets a job at Costco. Which of the following steps is he responsible for? a: Completing a W-4 and I-9 form. b: Telling the IRS how many hours he works c: Paying his weekly taxes to the government in cash d: Reporting how many Saturdays he works to the government

a: Completing a W-4 and I-9 form.

Mason is 17 years old, a junior in high school, and lives with his parents. He had unearned income of $750. Can his parents claim him as a dependent? Does he have to file a tax return? a: Mason can be claimed as a dependent by his parents and he is not legally required to file a tax return b: Mason can not be claimed as a dependent by his parents and he is not legally required to file a tax return c: Mason can not be claimed as a dependent by his parents and he is legally required to file a tax return d: Mason can be claimed as a dependent by his parents and he is legally required to file a tax return

a: Mason can be claimed as a dependent by his parents and he is not legally required to file a tax return

Out of the following group, who does NOT have to file a tax return? a: Max, whose total income from three separate part-time jobs was $9,500. b: Dani, who is a cafe barista and earned $13,000 in wages and $250 in tips. c: Janet, who earned $28,200 but was paid entirely in cash. d: Isaiah, who owns his own business and generated an income of $7,000.

a: Max, whose total income from three separate part-time jobs was $9,500.

Which of the following describe what a "dependent" is for tax purposes? a: Someone under the age of 19 who you financially support b: Someone who financially supports you c: Someone who is a full-time student under the age of 30 d: Someone who is temporarily disabled

a: Someone under the age of 19 who you financially support

What tax form am I? I am received in January. There is one of me for every employer that you worked for in the previous year. I have information on how much you earned and how much you paid in taxes for the previous calendar year. a: W-2 b: I-9 c: 1099 d: W-4

a: W-2

Which of the following are the three largest categories of federal government spending? a: Infrastructure, Defense, and Science b: Health, Military, and Interest on Debt c: Veterans, Infrastructure, and Education d: Education, Defense, and Food/Agriculture

b: Health, Military, and Interest on Debt

What does the term "withholding" mean in reference to your paycheck? a: It is the amount of your paycheck that you are NOT being taxed on. b: It is how much is being taken out of your paycheck in taxes. c: It is how much you are going to owe the government when you file your annual tax return. d: It is how much you earn and includes salary, bonus, and commissions.

b: It is how much is being taken out of your paycheck in taxes.

Jessica is 24 years old and lives in her own apartment. She earned $48,000 from her salaried position last year. Can she be claimed as a dependent by her parents? Is Jessica legally required to file taxes? a: Jessica can be claimed as a dependent by her parents and she must file a tax return b: Jessica can not be claimed as a dependent by her parents and she must file a tax return c: Jessica can be claimed as a dependent by her parents and she is not legally required to files taxes d: Jessica can not be claimed as a dependent and she does not need to file a tax return

b: Jessica can not be claimed as a dependent by her parents and she must file a tax return

When are you required to file a tax return? a: When you get a full-time job (part-time does not count) b: When you make more than the minimum income requirement c: When you are notified by the IRS that you are required to pay federal income taxes d: When you turn 18

b: When you make more than the minimum income requirement

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company? a: If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return b: You must file your tax return by April 15th of the following year or request an extension by that date c: You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money d: You need to file your tax return by the end of the calendar year (typically December 31st)

b: You must file your tax return by April 15th of the following year or request an extension by that date

Which of the following statements about the W-2 form is TRUE? a: The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form b: You need a separate W-2 form from EACH of your employers in order to file your taxes c: A W-2 lists all the money you earned in cash over the last year d: The W-2 includes information about the interest you earned from your investments

b: You need a separate W-2 form from EACH of your employers in order to file your taxes

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________. a: direct deposit b: refund c: withholding d: deduction

b: refund

What form am I? I am received when you start a job. You use me to prove that you are eligible to work in the U.S., and you must provide forms of identification when submitting me. a: 1099 b: W-4 c: I-9 d: W-2

c: I-9

Upon completing your 1040, you realize that you owe the IRS $427. Each of the following is a possible way to pay the taxes you owe EXCEPT... a: Use your debit or credit card online or by phone. b: Write a check and mail it to the IRS. c: Tell the IRS to take out more taxes next year to pay back the $427. d: Set up an auto-transfer from your bank account if you e-file.

c: Tell the IRS to take out more taxes next year to pay back the $427.

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal and state income taxes? a: I-9 b: W-2 c: W-4 d: 1099

c: W-4

Your friend Laila is talking to you about the benefits of tax filing software. Which of the following is TRUE? a: The software comes with free access to professionals who can help you if you have a question. b: You are guaranteed a higher refund than if you were to use a paper form or hire a professional. c: You can avoid the costs of having to pay a professional, though you may have to pay for the software and/or e-filing online. d: You are 50% less likely to make a mistake when e-filing your taxes than if you were to file them using paper forms.

c: You can avoid the costs of having to pay a professional, though you may have to pay for the software and/or e-filing online.

Marquis is starting a fast food job during his senior year of high school. He lives with his parents and they will claim him as a dependent on their taxes this year. He earns $2000. Based on how he completed his W-4, his employer withheld $200 in federal income taxes from his paychecks. What will happen if Marquis doesn't file taxes in April? a: The IRS will refund his $200 to his parents. b: The IRS will refund his $200 directly to him. c: The IRS will fine Marquis $75 or more for not filing taxes. d: Nothing will happen, but Marquis will miss out on his potential refund.

d: Nothing will happen, but Marquis will miss out on his potential refund.

When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT... a: Are you claimed as a dependent on anyone else's tax return? b: How much income did you earn this year? c: What type of income did you earn this year? d: What state do you live in?

d: What state do you live in?