Module 4 Taxes Test Review

What is the amount of money that you actually take home from your paycheck?

• Net

• Gross

• Taxes

• Deductions

Which form do employers use to calculate the amount of federal income tax to be withheld from your paycheck?

• W-4

• W-2

• Form 1040EZ

• Form 1040A

Money that your employer holds from your paycheck in order to pay the government taxes is called ___________.

• Dependent

• Tax Witholding

• Exempt

• Income

You earn $1,500.00 a month and your employer withholds $450.00 in taxes a month. This is an example of ____________.

• Taxes on property

• Taxes on Earnings

• Taxes on Gifts

• Taxes on Items Purchased

Which of the following payroll deductions may NOT be taken out of every person's paycheck?

• Medicare

• Federal and State Taxes

• Social Security

• Retirement

If you are single with no children and your parents do not claim you on their taxes, how many allowances should you indicate on your W-4 form in order to get the most money back at the end of the year?

• 1

• 2

• 3

• 4

Review the form below to answer the question.  How much, including allowances and additional withholdings, does the taxpayer want withheld?

• 40.00

• 1 allowance + additional $40.00

• 2 allowances + additional $40.00

• 1 allowance

What are taxes based on the sale of electronics or clothing?

• Property Tax

• Sales Tax

• Corporate Taxes

• Excise Tax

What is sales tax?

• Unit tax on goods and services

• Total tax on all goods and services

• Percentage tax on the sales price of many goods

• Tax on items over a certain dollar amount

Which item includes a tax in the price of the good?

• Video Game

• Gasoline

• Food at a restaurant

• A new car