Chapter 10 Test

Front

Withholdings and deductions are . . .

Back

Expenses that are taken out of your paycheck

Front

What does the Form W-4 estimate?

Back

How much tax you'll owe based on your personal situation.

Front

If you work and earn money, you will have to pay taxes.

Back

True

Front

What is the main IRS form that most Americans use to file their taxes?

Back

Form 1040

Front

Which of the following is most likely to need the help of a tax professional?
Salaried workers, Minimum-wage workers, College graduates, Self-employed people

Back

Self-employed people

Front

Only a few states have inheritance tax, which . . .

Back

Requires you to pay tax on an asset you receive when someone passes away

Front

When you pay taxes on a purchase, the seller gets to keep that money.

Back

True

Front

Those who properly fill out their Form W-4 shouldn't have too much or too little taxes withheld.

Back

True

Front

Using online tax software or hiring a tax professional are both good options depending on your situation.

Back

True

Front

Government deficit spending is a good thing because it lowers the amount of taxes that need to be collected.

Back

True