Chapter 6 - Income Taxes

A tax based on the amount of money you earn. It is paid to the U.S. Government. Some states have this tax as well.

• Income tax

• property tax

• sales tax

• payroll

The money added to the cost of items and for services. Usually paid when an item is purchased.

• income tax

• property tax

• sales tax

• payroll tax

John buys a candy bar priced at $0.59. After the clerk adds tax, John pays $0.65 cents for the candy bar. What tax did John pay?.

• income tax

• property tax

• sales tax

• payroll tax

Which of these is the smaller amount of money?

• Gross pay

• Net pay

Which of these forms does your employer give you after getting a new job?

• W-2

• W-4

• Form 1099

• Form 1040EZ

The total amount of income you receive is called your

• weekend income.
• gross income.
• net income.
•  taxable income.

An employee makes $48,000 per year. How much does he pay annually in Social Security taxes?

• $2976.00
• $258.33
• $184.52
• $2214.24

A self-employed worker makes $7500.00 a month. He pays 7.35% towards a retirement account. How much does he accumulate after 30 years?

• $198,450.00
• $551.25
• $6,615.00
• Need more information.

Required payments to a government are_______________. 

• income
• taxes
• income taxes
• medicare

A deduction is

• gross income
• money added to your income
• net income
• money taken out of your income