Taxes Unit Test

Front

What is the purpose of taxes?

Back

To fund the government to pay for services people want and need.

Front

What is a tax bracket?

Back

A range of income that is taxed at a specific rate.

Front

What is a common misconception about tax brackets?

Back

The tax rate of the highest tax bracket your income falls into is applied to your whole income.

Front

What is a W-2 form used for?

Back

To file income taxes.

Front

What is the deadline for employers to send W-2 forms?

Back

January 31st.

Front

What does the standard deduction do?

Back

Reduces your taxable income.

Front

What are marginal tax rates?

Back

Portions of your income are taxed at different rates.

Front

What is the significance of April 15th in relation to taxes?

Back

It is the deadline for filing income tax returns.

Front

What is taxable income?

Back

The amount of income that is subject to tax after deductions.

Front

What is a tax refund?

Back

Money returned to a taxpayer when they have overpaid their taxes.