Taxes Vocabulary Knowledge

What is the payment called that Logan has to pay to the government based on his earnings?

• A tax imposed by the government on goods and services

• A tax imposed by the government on individuals' earnings or profits

• A tax imposed by the government on property

• A tax imposed by the government on imports

Who is considered a Dependent?

• A person who files their own taxes

• A person who relies on another for financial support

• A person who is self-employed

• A person who is retired

What is the document called that details income and expenses for the year?

• A form submitted to the government detailing income and expenses

• A document showing property ownership

• A receipt for purchased goods

• A certificate of employment

What type of income is a paycheck received every two weeks?

• Income from investments

• Income from gifts

• Money received from working, such as wages or salaries

• Income from selling property

What type of income is a dividend from stocks and interest from a savings account?

• Income from employment

• Income from sources other than employment

• Income from selling goods

• Income from freelance work

What does Filing Status affect?

• The amount of property tax owed

• The classification of a taxpayer's situation on their tax return

• The interest rate on loans

• The eligibility for government grants

Matthew and Daulton are discussing how the government tracks income and benefits. What is the unique number assigned to individuals for this purpose?

• A unique number assigned to track employment history

• A unique number assigned to individuals by the government for tracking income and benefits

• A unique number for bank accounts

• A unique number for credit cards

Doug is reviewing his tax documents and comes across a term he doesn't understand. What is an Exemption?

• A provision that allows certain income to be excluded from taxation

• A penalty for late tax filing

• A bonus for early tax payment

• A fee for tax consultation

Doug is filing his taxes and learns about a tax benefit that can directly reduce the amount he owes. What is this benefit called?

• A penalty for underpayment of taxes

• A dollar-for-dollar reduction in the amount of tax owed

• A fee for tax preparation services

• A bonus for accurate tax filing

What type of account should Matthew consider for retirement income?

• A savings account designed to provide income during retirement

• A checking account for daily expenses

• A loan account for home purchases

• A credit account for travel expenses