Personal Finance - Careers and Taxes

Which of the following statements about taxes is FALSE?

• Not all types of income are taxed; while earned income and passive income are taxed, portfolio income is not taxed.

• Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable), and FICA.

• The primary taxes on consumption are sales tax and excise tax.

• Taxes on wealth and property include property tax, taxes on inheritance, estate taxes and gift taxes.

The process by which we "market" ourselves to others by highlighting personal strengths, interests,unique qualities and identifying goals.

• Personal branding

• Personal selling

After an interview, you should be patient and wait for the employer to contact you so that you don't appear overly eager for the position.

• True

• False

This tax is the main source of revenue for local governments

• Excise tax

• Property tax

The Internal Revenue Service (IRS) is the federal government agency responsible for:

• Keeping the unemployment rate low

• Writing tax laws

• Filling out your forms

• Tax collection and tax law enforcement

Money earned on a regular basis with little or no effort required to maintain it, i.e., rental income from real estate

• Portfolio income

• Passive income

The government relies on taxes to:

• Remind the citizens of the government's power

• Burden the public with an extra expense

• Pay for services such as roads, education and social services

• All of the above

As you acquire more education and work experience, your income and choice of jobs should rise as well.

• True

• False

Taxes paid by anyone who owns property such as land, a home or commercial real estate

• Property taxes

• Estate taxes

Any income that is generated by working

• Passive income

• Earned income