Paying Your Taxes: Reading Quiz

17 June 2024
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question
The penalty for not paying taxes owed: a)Can't be calculated if you do not file taxes b)Includes penalty fees and interest calculated starting April 15 of the year the taxes are owed c)Can be determined by the Social Security Administration even if withholding is not taken from your paycheck d)Will be $600 plus interest starting April 15 if you do not file a tax return, regardless of the amount of your wages
answer
b)Includes penalty fees and interest calculated starting April 15 of the year the taxes are owed
question
If you want to reduce the amount you pay in taxes each year: a)You should work less hours b)Start contributing to an individual retirement account c)Don't claim any earnings d)All the above
answer
b)Start contributing to an individual retirement account
question
A paycheck has withholding tax taken out: a)If a person earns more than $600 a year b)That is paid to state and federal taxing authorities c)That is automatically refunded to workers even without filing a 1040EZ form d)That is always equal to $9.54
answer
b)That is paid to state and federal taxing authorities
question
The federal government: a)Is the national government of the U.S. that takes in taxes and funds such programs as maintaining interstate highways and the military b)Does not supply Social Security cards c)Is not allowed to tax income
answer
a)Is the national government of the U.S. that takes in taxes and funds such programs as maintaining interstate highways and the military
question
Medicare is a government program funded by tax dollars to: a)Provide health insurance to children b)Provide health insurance to working adults c)Provide hospital insurance for those over 65
answer
c)Provide hospital insurance for those over 65
question
A major payroll tax is called: a)FICA, for Federal Insurance Contributions Act b)SSN, for Social Security Number c)Capital gains tax d)Business tax
answer
a)FICA, for Federal Insurance Contributions Act
question
Tax refunds: a)Occur when a taxpayer's income tax payments, including withholdings, exceed what they owe b)Are distributed to all taxpayers if the government tax receipts exceed its spending c)Come to taxpayers regardless of whether they file an income tax return or not d)Are greater if you file your taxes in January, rather than April
answer
a)Occur when a taxpayer's income tax payments, including withholdings, exceed what they owe
question
To file your taxes online, you must enter: a)A Personal Identification Number b)A driver's license number c)A telephone number d)None of the above
answer
a)A Personal Identification Number
question
Taxes go to pay for the following as what percentage of the GDP: a)Social Security 2.7%, National Defense 11.9%, and Medicare 4.9% b)Social Security 30.1%, National Defense 10.5%, and Medicare 4.2% c)Social Security 4.9%, National Defense 3.1%, and Medicare 2.9% d)Social Security 6.6%, National Defense 5.7%, and Medicare 12.1%
answer
c)Social Security 4.9%, National Defense 3.1%, and Medicare 2.9%
question
True or False. A single working person may claim themselves as a dependent. a)True b)False
answer
b)False