Personal Finance Managing Income Taxes

An example of income that is not taxable is...

• Lottery winnings are not taxable
• Income from freelance work
• Gifts and life insurance payout

A progressive tax is one that...

• decreases as the taxable amount increases
• remains constant regardless of the taxable amount
• increases as the taxable amount increases

The marginal tax bracket is broken up into this many brackets.

• 5
• 3
• 7

Charity donations will affect your tax contributions by...

• increasing your taxable income and raising the amount of taxes you owe
• having no impact on your tax contributions
• lowering your taxable income and reducing the amount of taxes you owe

The first step in calculating your income taxes is...

• Determining your total income

• Filing your taxes without any documents
• Ignoring the tax deadline

This form is your Wage and Tax Statement, containing all the information you will need to file your taxes.

• A-9

• W-2

• S-42

What is not included as earned income?

• Rental income, royalties, and alimony
• Social Security benefits, pensions, and annuities
• Disability payments

A 1099-DIV is sent out in regards to...

• dividends

• capital gains
• rental income

This is all the money you receive in the form of money, goods, services and property.

• Net income

• Exclusive income

• Gross Income

An example to an adjustment to income is...

• Contributing to a Roth IRA
• Moving expenses

• Purchasing a new car