Income Taxes

What type of tax takes a percentage of the money you make on a job?

• a. Income tax

• b. Property tax

• c. Sales Tax

• d. Social Security tax

• e. Medicare tax

The federal government levies a tax on personal income to provide for 

• national defense and law enforcement

• veterans and foreign affairs

• social programs like food and housing assistance and college grants

• All answers shown

What is the name of the agency that collects taxes in the United States?

• Secret Service

• Federal Bureau of Investigation

• Internal Revenue Service

• Department of Energy

• Department of the Interior

What is state income tax?

• the tax you pay to state or local government when purchasing an item

• the tax paid to the state government where you live or work based on your income

• the tax that pays for healthcare for people ages 65 and older

• the tax paid to the federal government based on your income

What is the deadline for filing federal income tax forms?

• April 15

• June 30

• September 15

• December 31

What is the deadline for filing federal income tax forms?

• April 15

• June 30

• September 15

• December 31

Which of these things will reduce your tax liability DOLLAR FOR DOLLAR?

• Tax deduction

• Tax credit

• Tax bracket

• Standard deduction

The amount you owe in taxes is calculated based on your

• Taxable income

• Gross income

• Net income

• Adjusted Gross Income

Answer explanation

This is your gross income (minus) adjustments for retirement account contributions

When people refer to "tax day" , they mean...

• January 1, the first day of the year

• January 31, the last day to receive your tax forms

• Whatever day your tax refund comes in the mail

• April 15, the deadline to file taxes

Which of the following things will help lower taxpayeers federal tax bill in 2022?

• Take on a second job

• Itemize her tax deductions

• Contribute to a retirement account like a 401k

• Move to a state without income tax

Answer explanation

There are 3 tax-advantaged Retirement accounts: 401k, IRA (Individual Retirement Account), and HSA (Health Savings Account)