Financial Literacy - Tax Review

What are taxes?

• money earned from employers

• money collected by a government from its citizens for the purpose of operating the government

• money used overseas to protect the nations' citizens

• money that is collected by employers to increase the company's revenue

What is gross pay?

• the amount of money you get to keep an use

• the total amount of money you earn

• the amount of money you pay in taxes

• the total amount of money you have earned all year

What is your take-home/net pay?

• The amount of money you get to keep and use

• The total amount of money you earn

• the amount of money you pay in taxes

• the money collected by the government

Who pays taxes?

• Individuals over 21

• Individuals under the age of 65

• Individuals between the ages of 25 and 80

• Everyone

What are the different types of taxes? More than one answer may apply.

• Sales taxes

• Real estate taxes

• Payroll taxes

• Child taxes

What is sales tax?

• taxes on land owned

• taxes on purchases at a store

• taxes on your paycheck

What is real estate tax?

• Taxes on land owned, based on value of the property, used to fund local schools

• Tax on purchases at a store - imposed by the state

• Taxes on your paycheck, include Federal and State Income taxes and Social Security (FICA)

What are payroll taxes?

• Tax on purchases at a store - imposed by the state

• Taxes on land owned, based on value of the property, used to fund local schools

• Taxes on your paycheck, include Federal and State Income taxes and Social Security (FICA)

What are the two primary sources of employment? Select Two.

• Non-employment

• Self-employed

• Pretend-employment

• Employed by an employer

What is self-employed?

• owns his/her own business and is responsible for paying business taxes?

• Someone who pays employees

• A person who works for an employer