Ch. 10 Test

What is the amount you earn before taxes and other payroll deductions?

• Total income
• Take-home pay
• Net income
• Gross income

What is the portion of an employee’s pay held back to cover taxes and other deductions​​​​​​​?

• Withholding
• Deduction
• Retirement
• Bonus

In 1789, _____ _____ wrote the following words in a letter: “In this world nothing can be said to be certain, except death and taxes.”

• Thomas Jefferson
• Alexander Hamilton
• Benjamin Franklin
• George Washington

The short answer is that you’re basically paying to be a citizen of the good ol’ USA. What is the question?

• How much does it cost to be a citizen of the USA?
• What are the benefits of being a citizen of the USA?
• Is it free to become a citizen of the USA?
• Why are you paying taxes?

What is the total tax a person or business has to pay​​​​​​​?

• tax liability

• tax return

• income tax

• state tax

What is a report that a taxpayer has to submit annually to the government and is used to determine a person‘s tax liability?

• Tax Refund Form
• Tax Exemption Application
• Income Tax Return
• Tax Deduction Request

What is the word for the income ranges in which tax rates apply​​​​​​​?

• taxable income

• tax diversion

• tax income

• tax bracket

What is the dollar amount people can subtract from their income before the tax is calculated?

• Personal exemption
• Tax credit
• Tax refund
• Standard deduction

What is a list of all eligible expenses that can be claimed to decrease taxable income​​​​​​​?

• Grocery expenses
• Vacation expenses
• Pet expenses
• itemized deductions

What is an official IRS inspection of a tax return to make sure the income and deductions are accurate?

• Examination
• Review
• Verification
• Audit