Taxes Test Review

What is the purpose of tariffs?

• To control how many products are exported each month

• To determine how much income tax a person owes if they make less than $50,000 a year

• To control the flow of products that are imported into the United States

• To relieve taxpayers of a portion of the taxes they owe

Estate taxes are collected

• By the local government

• Once a month

• Along with personal property tax

• On the inheritance from a deceased person

Employers must withhold excise taxes from your paycheck.

• True

• False

Examples of public goods are:

• Cars, boats, and RVs

• Roads, schools, and national defense

• Cell phones, tablets, and computers

• Gasoline, food, and clothes

Excise taxes are those taxes collected

• on the sale of tobacco, gasoline, and alcohol

• by December 31 of each year

• on the property purchased, including autos and boats

• by April 15 of each year

People who depend on you financially, like children, are called dependents.

• True

• False

You are not required to file a Form W-4 with your employer when you take a job.

• True

• False

Tax preparers are particularly very busy during every January.

• True

• False

The law that requires workers to contribute to Social Security and Medicare is the Federal Insurance Contributions Act.

• True

• False

Indicating allowances on your W-4 form

• Will increase your net pay

• Will increase your gross pay

• Tells your employer how many vacation days you are allowed

• Tells your employer how much money to withold from yur pay