Taxes Multiple Choice Test

1. Which of the following are the three largest categories of federal government spending?

2. What does the term withholding mean in reference to your paycheck?

3. When do you start paying taxes?

4. Why is it important to be extremely careful when completing your 1040 form?

5. Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company?

6. 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?

7. Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?

8. When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…

9. Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?

11. What tax 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.

16. Your friend Laila is talking to you about the benefits of tax filing software. Which of the following is true?

17. Which of the following describe what a dependent is for tax purposes?

18. 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...

19. Elaine is an employee. Which of the following steps is she responsible for?

20. Which of the following statements about the W-2 form is TRUE?

21. When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.

22. Akshay worked at a cafe while he was a college senior in Boston, Massachusetts. After graduating in June, he moved back to his home in California and started a full-time job in September. Which of the following statements is true?

23. Out of the following group, who does NOT have to file a tax return?

24. You will need to pay a 15.3% self-employment tax if you earn $1,100 in a year...

25. 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

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