1. Cassidy's gross income for the year included salary, $11,400; commission, $17,720; and interest, $540. Her adjustments to income were payments to a retirement plan, $1,000 and 2 exemptions at $4,000 each. Find her taxable income.
a. $29,120
b. $9,000
c. $20,660
d. $24,120
2. Sandy just received her first pay check. Her gross pay was $399.15. She has the following deductions: Social Security tax 6.2%, Medicare tax 1.45%, federal withholding tax $76.56, and state withholding $24.75. What is her take home pay for the week?
a. $131.85
b. $297.84
c. $300.00
d. $267.31
3. Glen worked 40 hours last week at $23.49 per hour. How much did he pay in Social Security taxes for the week? Use the tax rate on page 317 in your textbook.
a. $1.46
b. $939.60
c. $45.00
d. $58.26
4. Jim worked 80 hours over the last two weeks earning $18.48 per hour. How much did he pay in Medicare taxes for the two weeks? Use the tax rate on page 317 in your textbook.
a. $91.67
b. $48.05
c. $21.44
d. $39.95
5. Which of the following statements is false for a person wanting to use and file a Form 1040EZ tax return?
a. Taxable income is less than $100,000.
b. No more than 2 dependents, in addition to the taxpayer plus spouse.
c. Taxable interest is not over $1,500.
d. Filing status is either single or married filing jointly only.
6. Sue's employer withheld $72.50 from her weekly paycheck for federal income taxes. She calculated that the total federal income tax that she owes for the year is $4,219. How much more does she owe?
a. $449.00
b. $3770.00
c. $870.00
d. $72.50