Taxes (Part 2)

Front

What is the total amount withheld in federal, state, and local taxes for the year?

Back

$12,945.00

Front

What is true about federal income tax?

Back

It is a progressive tax that depends on your income level.

Front

Which tax is the largest source of revenue for the U.S. Government?

Back

Income tax.

Front

When should taxpayers use itemized deductions instead of the standard deduction?

Back

When the itemized deductions total is greater than the standardized deduction.

Front

How much was withheld for local income tax?

Back

$750.00

Front

What is a progressive tax?

Back

A tax that increases as the taxable amount increases, meaning higher earners pay a higher percentage.

Front

What are itemized deductions?

Back

Expenses that taxpayers can deduct from their taxable income to reduce their tax liability.

Front

What is the standard deduction?

Back

A fixed dollar amount that reduces the income on which you are taxed, available to all taxpayers.

Front

What is the purpose of federal income tax?

Back

To fund government services, including Medicare and Social Security.

Front

What is a sin tax?

Back

A tax imposed on goods deemed harmful to society, such as alcohol and tobacco.