Taking On Taxes Pretest

Why are FICA Taxes withheld?

To pay Federal taxes.

To pay for State Taxes.

To pay for Social Security and Medicare.

What percentage is withheld from our paychecks to cover Social Security and Medicare taxes in 2022?

5.50%.

7.65%.

6.50%.

The form used to determine your tax withholding amount is called which of the following?

W9

W2

W4

Taxes are not paid to which of the following entities?

Federal Government

State Government

City or county government

Neighborhood association

Taxes may also be collected from pensions, gambling winnings, bonuses, and commissions.

True

False

What is a progressive tax system? Check all that apply.

A system in which people with higher incomes must pay a larger percentage of their income toward income taxes

A system in which people with lower incomes must pay a smaller percentage of their income toward income taxes

A system using tax brackets to identify income ranges that determine how much income tax you're required to pay

Refer to the tax bracket table in the reading. For a 35 year old individual filing single, what percentage would they pay in taxes for income between $10,275 and $41,775?

10%

22%

24%

12%

In order to determine tax rates in your state, you should visit which of the following state offices?

Secretary of state

State agency that administers taxes, often called the department of revenue

State department of Taxation

Federal Internal Revenue Service

You have a taxable income of $30,000. You qualify for the lifetime learner tax credit in the amount of $2000.00 and the energy efficiency tax credit of $200. What is your taxable income if you are a 35 year old individual filing single? Do not use any deductions or the standard deduction for this question.

$2200

$27800.00

$30,000.00

$32200.00

You have a taxable income of $30,000. You qualify for the lifetime learner tax credit in the amount of $2000.00 and the energy efficiency tax credit of $200. You take the standard deduction of $12,950. What is your taxable income if you are a 35 year old individual filing single?

$12,950.00

$14,850

$17,050.00

$27,800.00

You’ll receive a tax refund if

The IRS notifies you that they’ve made a mistake

Your employer withheld more from your paycheck than you owe

You pay a professional to file your tax return

You can get in trouble for not filing a tax return if

You made more than the standard deduction last year

You made less than the standard deduction, but qualified for a tax refund

You were working last year

When should you file a tax return?

When you made more than the standard deduction last year

When you made less than the standard deduction last year and qualified for partially or fully refundable tax credits

What is the name of the form your employer gives you showing your money earned?

W2

W9

W4

1098

For money earned as a contractor, unemployment, or through investments, which forms will you receive?

W9

W2

1099

How long, on average, does it take to complete and file a tax return

11 days

11 hours

11 weeks

How much, on average, does it cost to pay a professional to do your taxes?

$220

$2200

$22

What is a disadvantage of using paper forms to file your tax return?

The forms are inaccessible

An IRS employee needs to manually handle the forms, which will delay your tax refund

Your refund will be smaller

What is an advantage of using online tax preparation software?

You can get your refund faster

Your refund will be bigger

It may be able to scan or import paper forms

What type of tax preparer works at H and R Block?

A Certified Public Accountant

A noncredentialled tax preparer

A tax attorney

An enrolled agent

All Certified Public Accountants are tax experts

True

False

Which tax professionals may be appropriate for complex tax situations? Check all that apply.

Enrolled agents

Certified Public Accountants

Tax Attorneys

Noncredentialled tax preparers

When might you want to hire a noncredentialled tax preparer?

When you have a simple tax situation

When you have a complex tax situation and cost is an issue

When the noncredentialled tax preparer is a close friend

When the noncredentialled tax preparer has passed an IRS certification course

Taking On Taxes Pretest

Quiz Summary

Information

Results

Results

Categories

1. Question

Why are FICA Taxes withheld?

2. Question

What percentage is withheld from our paychecks to cover Social Security and Medicare taxes in 2022?

3. Question

The form used to determine your tax withholding amount is called which of the following?

4. Question

Taxes are not paid to which of the following entities?

5. Question

Taxes may also be collected from pensions, gambling winnings, bonuses, and commissions.

6. Question

What is a progressive tax system? Check all that apply.

7. Question

Refer to the tax bracket table in the reading. For a 35 year old individual filing single, what percentage would they pay in taxes for income between $10,275 and $41,775?

8. Question

In order to determine tax rates in your state, you should visit which of the following state offices?

9. Question

10. Question

You have a taxable income of $30,000. You qualify for the lifetime learner tax credit in the amount of $2000.00 and the energy efficiency tax credit of $200. You take the standard deduction of $12,950. What is your taxable income if you are a 35 year old individual filing single?

11. Question

You’ll receive a tax refund if

12. Question

You can get in trouble for not filing a tax return if

13. Question

When should you file a tax return?

14. Question

What is the name of the form your employer gives you showing your money earned?

15. Question

For money earned as a contractor, unemployment, or through investments, which forms will you receive?

16. Question

How long, on average, does it take to complete and file a tax return

17. Question

How much, on average, does it cost to pay a professional to do your taxes?

18. Question

What is a disadvantage of using paper forms to file your tax return?

19. Question

What is an advantage of using online tax preparation software?

20. Question

What type of tax preparer works at H and R Block?

21. Question

All Certified Public Accountants are tax experts

22. Question

Which tax professionals may be appropriate for complex tax situations? Check all that apply.

23. Question

When might you want to hire a noncredentialled tax preparer?