TAXES and INCOME

Front

What is a deduction?

Back

A deduction is money taken out of your income.

Front

What is income tax?

Back

Income tax is a tax based on a percentage of what a person earns for the year.

Front

What type of tax is charged on property ownership?

Back

Property tax is charged on the value of property owned.

Front

What is sales tax?

Back

Sales tax is a tax added to the price of goods and services at the time of purchase.

Front

What is payroll tax?

Back

Payroll tax is a tax that employers withhold from employees' wages to fund social security and Medicare.

Front

If Heather bought an expensive cell phone and Meg bought a less expensive one, who will pay more in sales tax?

Back

Heather will pay more in sales tax.

Front

What is gross income?

Back

Gross income is the total income earned before any deductions.

Front

What is net income?

Back

Net income is the amount of money left after all deductions and taxes have been taken out.

Front

What is the purpose of filing a tax return?

Back

The purpose of filing a tax return is to report income, calculate taxes owed, and claim deductions or credits.

Front

What is a percentage tax?

Back

A percentage tax is a tax that is calculated as a percentage of income or sales.