Personal Finance ch 3 and 4 Earnings and Taxes

Which of the following is not a form of earned income?

• wages

• commissions

• rental income

• salaries

Eligible workers who work more than ______ hours per week must receive overtime pay at least _____ times their regular hourly rate.

• 30, 2

• 35, 1.5

• 40, 1.5

• 40, 2

Income paid as a percentage of sales made by salesperson is a ______.

• tip

• wage

• bonus

• commission

Income earned by workers who are self-employed is called ______.

• profit

• capital gains

• entrepreneurial income

• gratuity

The Employee’s Withholding Certificate is a federal tax form that is also called the ______.

• Form W-2

• Form W-4

• Form 1040

• Form I-9

A(n) ______ is a report containing information used to calculate taxes owed by the taxpayer.

• tax return

• Form W-2

• audit

• Form W-4

What is the amount on which taxes are calculated?

• net pay

• gross income

• taxable income

• earned income

The _____ is a dollar amount that non-itemizers may subtract from their income before income tax is applied.

• itemized deduction

• taxable deduction

• exempted deduction

• standard deduction

The amount of total tax owed on income for the year is known as a _____.

• tax bill

• tax liability

• tax credit

• income liability

What is the first item you will need to complete on a Form 1040?

• Signature

• Income

• Personal information

• Standard deduction