JA Finance Read pp 9-13 Taxes and Income

What is the main purpose of the IRS?

• To create tax laws

• To enforce tax laws

• To collect sales tax

• To manage state budgets

Which of the following is a type of tax revenue?

• Income tax

• Grocery tax

• Clothing tax

• Entertainment tax

What is withheld from your paycheck to pay taxes?

• Savings

• Tips

• Wages

• Salaries

Who is responsible for enacting tax laws in the United States?

• The President

• The IRS

• U.S. Congress

• State Governors

What must U.S. citizens and residents do annually regarding taxes?

• Pay sales tax

• File income tax forms

• Pay property tax

• Apply for tax exemptions

Which of the following is NOT a source of tax revenue mentioned in the lesson?

• Income

• Sales

• Property

• Inheritance

What happens if you overpay your taxes?

• You receive a refund

• You pay a penalty

• You must file a complaint

• You lose the extra money

What is the term for the money you take home after taxes are deducted?

• Gross income

• Net income

• Total income

• Adjusted income

Which government entity is primarily responsible for collecting federal taxes?

• State Government

• Local Government

• Internal Revenue Service (IRS)

• Department of Treasury

Why is tax knowledge important for personal financial management?

• It helps in avoiding all taxes

• It ensures you pay more taxes

• It helps in understanding the impact of taxes on income

• It allows you to evade taxes legally