Time for Taxes

Ms. Parvin pays a tax every year because she owns a house. Which term best describes this tax?

• Income Tax

• Sales Tax

• Property Tax

• Payroll Tax

Which of these statements about gross income and net income is true?

• Gross income is a tax on all income that a worker earns, and net income is a tax paid by an employer based on a worker’s wages.

• Gross income is a tax paid by an employer based on a worker’s wages, and net income is a tax on all income that a person earns.

• Gross income is the amount an employee is paid after deductions and taxes, and net income is the total amount an employee earns before deductions.

• Gross income is the total amount an employee earns before deductions are applied, and net income is the amount an employee is paid after deductions and taxes.

Mr. Henderson’s gross income this month equals his gross income for last month. Mr. Henderson’s net income this month is less than his net income last month. Which could explain the change in Mr. Henderson’s net income?

• The local sales tax has increased

• His payroll taxes have decreased

• His property taxes have decreased

• His payroll taxes have increased

Micah wants to purchase 2 comic books for $5 each and a

set of trading cards for $10. He gives the clerk $20. The

clerk said Micah needs money for the tax. Which tax does Micah need to pay?

• Property Tax

• Payroll tax

• Sales Tax

• Income Tax

Shonda earns $8 per hour working at Taco Town. Her paycheck this week is $199 for 30 hours of work. What amount was withheld from Shonda’s paycheck for payroll taxes?

• $240

• $59

• $41

• $161

The Cruz family moves to a house with a higher value. As a result, which of the following will probably happen?

• Their income taxes will increase.

• Their property taxes will increase.

• Their payroll taxes will decrease.

• Their property taxes will decrease.

John and Stan work as nurses in different hospitals. Their paycheck stubs for one pay period are shown below. Based on the paycheck stubs, which is NOT a true statement?

• John’s gross income is $381 less than Stan’s gross income for this pay period.

• Stan’s payroll tax is $29 more than John’s payroll tax for this pay period.

• John’s net income is $123 less than his gross income for this pay period.

• Stan’s net income is $381 more than John’s net income for this pay period.

What type of tax does Lori’s mom pay at the store?

• Payroll tax

• Sales Tax

• Income Tax

• Property Tax

For which of the following might the city use this tax for?

• A football player’s salary

• Social security

• Grocery stores

• Bridge repairs

Lori’s mom forgot to buy oven cleaner, priced at $4.75. She purchases oven cleaner on a different receipt. About how much tax will Lori’s mom pay for the oven cleaner?

• $6.67, because you add $1.92 and $4.75 to find the tax

• $1.92, because you always add $1.92 for tax

• $0.39, because tax on $4.75 is less than tax on $23.26

• $0, because Lori’s mom already paid the tax when she bought the other items