Understanding Taxes Quiz

What is a tax according to the document?

• A fee charged by the government for purchasing items.

• Money sent to our government to support programs such as the military and education.

• A voluntary contribution to the government.

• A payment required only for people who work more than 40 hours a week.

Why might someone's weekly paycheck be less than expected based on their hourly wage and hours worked?

• Because of deductions for taxes.

• Because they received a bonus.

• Because they worked overtime.

• Because of an accounting error.

What can reduce the amount of income tax an individual has to pay?

• Increasing the number of hours worked.

• Subtracting certain expenses called deductions.

• Paying in a different currency.

• Working only part-time.

How does the number of people supported by a household's income affect income taxes?

• It has no effect on the amount of income tax paid.

• The more people supported, the higher the income tax.

• The more people supported, the lower the income tax due to higher deductions.

• It only affects families with more than five members.

When is federal income tax due each year?

• December 31st.

• April 15th.

• July 4th.

• October 1st.

Which state is mentioned as not having a state income tax?

• California

• Texas

• New York

• Florida

What are the two types of payroll taxes?

• Income tax and Sales tax

• Social Security tax and Medicare tax

• Property tax and Excise tax

• Unemployment insurance and Health insurance

Who pays for Social Security and Medicare taxes?

• Only the employee

• Only the employer

• Both the employer and the employee

• The federal government

What is the purpose of Medicare tax?

• To fund retirement benefits

• To pay for medical services for people 65 years or older

• To provide unemployment insurance

• To support education

What additional payment does an employer make related to payroll taxes?

• Health insurance

• Unemployment insurance

• Sales tax

• Property tax