Personal Finance Chapter 10 Assessment

Withholdings and deductions are ...

• Examples of deficit spending

• Expenses that are taken out of your paycheck

What does the Form W-4 estimate?

• How much tax you'll owe based on your personal situation.

• How much income you should be making.

The money you earn hourly for your time and effort at work is called your

• Minimum wage

• Wages

• Income tax

• Salary

Every American who earns an income must file a

• Tax deduction

• Paycheck

When you make money, you will pay

• More; more

• More; less

• Less; more

• More; the same amount

If you work and earn money, you will have to pay taxes.

• True

• False

When you buy clothes or check out at the grocery store, you will pay

• With your tax credit card

• Sales tax

• Excise tax

• Income tax

A fixed, annual rate of pay that doesn't change by working more or fewer hours is called

• Salary

• Hourly wages

• Passive income

• Commission

When someone says they need to file their taxes, they're talking about filling out a

• Federal tax return

• Form W-4

• Tax liability

• Tax bracket

What is the main IRS form that most Americans use to file their taxes?

• Form 1040

• Schedule C

• Form 1-9

• Form 1099-DIV