Read a paycheck and fill in a simple income-tax form

Grade 12 Social Studies Worksheet - Building Confidence

Circle the best answer.

1. Read this first

   Use this

   Cards A to C on reading a paystub (card A is made up; card B uses real rates; card C is in our words). Card A, "A monthly paystub (made up)". Who made it: written for this sheet. Table, columns Line | Amount: gross pay | $3,200.00; federal income tax withheld | $240.00; Social Security tax (6.2 percent of gross pay) | $198.40; Medicare tax (1.45 percent of gross pay) | $46.40; net pay | $2,715.20. Card B, "The employer's side". Who made it: the Internal Revenue Service (irs.gov), read November 14, 2026. Summary in our words, not a quotation: The employer also pays Social Security tax of 6.2 percent and Medicare tax of 1.45 percent on the worker's gross pay. Card C, "Three terms". Who made it: written for this sheet. Summary in our words, not a quotation: Gross pay is pay before anything is taken out. Withholding is money the employer sends to the government for the worker. Net pay is what is left to the worker.

2. 1.

   Esme reads card A. Which statement about the paystub is right?

   • Net pay is $2,470.40: the gross pay less the three tax lines and the employer's share
   • Net pay is $3,200: the paystub lists taxes that the employer pays, not the worker
   • Net pay is $2,960: the $3,200 gross pay less the $240 of income tax withheld
   • Net pay is $2,715.20: the $3,200 gross pay less $484.80 in three tax lines
3. 2.

   Bo checks the Social Security line on card A against its rate. Which reading is right?

   • It is too high: 6.2 percent of $3,200 is $19.84, so the line has a slip
   • It is too low: Social Security tax should be the full 7.65 percent, or $244.80
   • It cannot be checked: the paystub gives no rate for Social Security tax
   • It matches: 6.2 percent of $3,200 is $198.40
4. 3.

   Jun asks whether the $240 withheld equals the income tax the worker owes for the year. What is missing?

   • The worker's taxable income for the whole year, since withholding is an estimate
   • The worker's net pay for the month, which the paystub already gives as $2,715.20
   • The employer's matching Social Security tax, since the employer pays it as well
   • The Medicare tax for the month, since it is part of the tax the worker owes

5. Use this

   Cards A and B on income tax for three workers (card A is real data; card B is made up). Card A, "2026 federal income tax brackets, single filers". Who made it: the Internal Revenue Service (irs.gov), read November 14, 2026. Table, columns Rate | Taxable income over: 10% | $0; 12% | $12,400; 22% | $50,400; 24% | $105,700. Note: each rate applies only to the part of taxable income inside its band. Taxable income is wages less the standard deduction, which is $16,100 for a single filer in 2026. Card B, "Three workers (made up)". Who made it: written for this sheet. Summary in our words, not a quotation: Worker X has wages of $45,000 and files as a single filer. Worker Y has wages of $70,000 and files as a single filer. Worker Y then gets a raise of $1,000.

6. 4.

   Kira reads cards A and B. Which statement about Worker X is right?

   • Taxable income is $45,000, and all of it is taxed at 12 percent, as a single filer
   • Taxable income is $28,900, and all of it is taxed at 12 percent, as the top rate
   • Taxable income is $28,900, and all of it is taxed at 10 percent, the lowest band
   • Taxable income is $28,900; only the part above $12,400 is taxed at 12 percent
7. 5.

   Luz applies card A to Worker Y's taxable income of $53,900. Which statement is right?

   • $3,500 of it, the part below $50,400, is taxed at 22 percent and the rest at 10
   • The whole $53,900 is taxed at 22 percent, since its top dollars sit in that band
   • $3,500 of it, the part above $50,400, is taxed at 22 percent; the rest, lower
   • $53,900 of it is taxed at 12 percent, since Worker Y is a single filer with a deduction
8. 6.

   Worker Y gets the $1,000 raise on card B. Zee applies card A. How is the raise taxed?

   • At 12 percent, so income tax rises by $120
   • At 22 percent, and Worker Y's whole income is retaxed at 22 percent as well
   • It is not taxed, since the standard deduction already covers the raise
   • At 22 percent, so income tax rises by $220

9. Use this

   Cards A and B on withholding and refunds (card A is in our words; card B is made up). Card A, "Withholding and filing". Who made it: written for this sheet. Summary in our words, not a quotation: Employers withhold income tax from each paycheck, using the worker's Form W-4. After the year ends, the worker files a return that works out the tax actually owed. If the amount withheld is more than the tax owed, the difference comes back as a refund. If it is less, the worker owes the difference. Card B, "Three workers (made up)". Who made it: written for this sheet. Table, columns Worker | Withheld in the year | Tax owed: X | $3,000 | $2,700; Y | $3,000 | $3,400; Z | $3,000 | $3,000.

10. 7.

    Tala applies card A to Worker X. What happens when the return is filed?

    • A $300 refund, since $3,000 withheld is more than the $2,700 owed
    • A $2,700 refund, since the refund is the tax that was owed
    • No refund, since the employer already sent the $3,000 to the government
    • X owes $300, since the tax owed is less than the amount withheld
11. 8.

    Noah applies card A to Worker Y. What happens when the return is filed?

    • Y gets a $400 refund, since the tax owed is higher than the amount withheld
    • Y owes nothing, since withholding is the tax and the return cannot change it
    • Y owes $3,400, since the whole tax owed is paid when the return is filed
    • Y owes $400, since the $3,400 of tax owed is more than the $3,000 withheld
12. 9.

    Milo applies card A to Worker Z. What happens when the return is filed?

    • A refund of $3,000, since the full amount withheld is returned when a return is filed
    • Z cannot file, since a return is for workers whose withholding differs from the tax
    • Z owes $3,000, since the whole tax is paid when the return is filed
    • Neither a refund nor a balance due, since $3,000 withheld equals the $3,000 owed
13. 10.

    Ren reads cards A and B. Which claim do the cards support best?

    • Worker X earned an extra $300 from the government, so the refund is a gain
    • Worker X paid $300 less than needed, and the refund covers the shortfall
    • Worker X paid $300 more than needed during the year, and the refund gives it back
    • Worker Y paid $400 less than needed, so Worker X must have paid $400 too much