unit nine review

Question 1

(t/f) FICA tax is paid on the gross income before other taxes are deducted

Answer 1

true

Question 2

(t/f) FICA taxpayers are guaranteed the money they contribute plus interest

Answer 2

false

Question 3

the employee and employer pay an equal amount of FICA tax

Answer 3

true

Question 4

(t/f) Medicare is a social insurance program for qualified recipients funded by the government

Answer 4

true

Question 5

the first united states federal income tax was during the war of 1812

Answer 5

false

Question 6

the fifteenth amendment to the constitution made a federal income tax constitutional

Answer 6

false

Question 7

the ____ form is used by an employer to determine the amount of income taxes are deducted

Answer 7

W-4 form

Question 8

a set amount that is not taxed is called an _______

Answer 8

exemption

Question 9

income tax returns must be submitted by ______ each year

Answer 9

april 15th

Question 10

the _____ form informs an employee of his past year’s wages and income tax withheld

Answer 10

W-2 form

Question 11

the ____ income tax form is used if the taxpayer itemizes

Answer 11

1040

Question 12

income tax is paid on the ______ income

Answer 12

taxable income