Basics of Taxes

All states have state income tax.

• True
• False

Payroll tax include deductions for the Social Security and Medicare program.

• True
• False

Unearned income could include interest earned from a savings account.

• True
• False

Consumption items such as gas, hotel rooms and airline tickets are often charged an excise tax.

• True
• False

Sales tax is added to the original price of an item.

• True
• False

Taxes are one of the largest expenses for most people.

• True
• False

I can deduct the expenses of looking for my first job.

• True
• False

The amount of federal income tax you pay decreases as you earn more money.

• True
• False

Income tax is paid on only income earned through working from pay.

• True
• False

If an employee has $100 withheld from their paycheck for Social Security and Medicare tax deductions, the employer will contribute $50 for the total paid to be $150.

• True
• False