Taxes Quiz Review

The gig economy offers

Net Pay is...

What does "withholding" refer to in the context of income taxes?

What is the main goal of redistributive taxation policies?

Gross Pay is...

• the amount of money you are paid after AFTER any taxes are taken out of paycheck

• the amount of money you are paid after BEFORE any taxes are taken out of paycheck

• amount of money in paycheck with bonuses and overtime

• none of these

Withholding too much in taxes will result in:

• owing money during tax season

• allowing the government to borrow your money interest-free

• a higher paycheck

• none of these

Write-offs you are permitted to subtract from your gross income to calculate your taxable income are called:

• dependents

• deductions

• cost of living

• withholding

Net Pay is...

• amount you're paid after all taxes and deductions are taken out of your pay

• amount your'e paid before all taxes and deductions are taken out of your pay

• amount of pay worked for total hours plus overtime

• amount of gross pay plus bonuses

It is necessary to have your W-2 form in order to complete your taxes and submit them to the IRS.

• True

• False

• Depending on certain conditions

• Maybe!

Deductions and credits can ___________ what you owe in taxes each year.

• add to

• lower

• stop

• none of these