Chapter 2 Review - Net Income

Gross income is:

• the total amount of money you earn

• the amount of money you receive after decuctions are subtracted

• the total amount of money you spend

• sales taxes on items you buy

Net income is:

• the total amount of money you earn

• the amount of money you receive after deductions are subtracted from your gross income

• the amount of money that is taken away in the form of taxes

• the hourly rate of pay

Marco has the following deductions listed.

Federal Income tax: $44

Social Security tax: $23

Medicare tax: $5

Health Insurance: $24

What is the total amount of his deductions?

• $39

• $67

• $91

• $96

Money deducted from a paycheck that the US Goverment uses to pay for the country's needs.

• Federal income tax

• Net pay

• Medicare

• Social Security

A tax structure where those who make more money will pay more money.

• Graduated income tax
• Federal income tax
• Net pay
• Medicare

Government financial assistance to those who need help.

• Social Security
• Graduated income tax
• Federal income tax
• Net pay

Government medical assistance to those who need help.

• Medicare
• Social Security
• Graduated income tax
• Federal income tax

The money that goes into your pocket after taxes.

• Net pay
• Medicare
• Social Security
• Graduated income tax

What is the federal tax owed on a taxable income of $59,475?

• $8943

• $5444

• $9218

What is the income tax owed on a taxable income of $139,622?

• $26,931

• $13,962

• $22,433