Income Tax Basics

Which tax funds many different operations and programs of the federal government?

• Income Tax

• Payroll Tax

• Both A and B

• None of the above

According to the flowchart, taxpayers work as a voting group to elect representatives who will ________.

• Lower taxes

• Represent the majority

• Increase public spending

• Reduce government size

Which of the following is an example of progressive tax in the United States?

• airport tax

• property tax

• sales tax

• income tax

Which of the following would reduce your taxable income?

• claiming a dependent on your W-2

• Having your retirement taken out of your check before taxes is withdrawn (tax diferment)

• Contributing to a "flex" savings account for medical or dental expenses.

• All of these would reduce your taxable income

Business and people pay income taxes. Both are

• regressive taxes

• progressive taxes

• proportional taxes

• personal taxes

Which agency is in charge of collecting taxes and issuing tax returns?

• Federal Bureau of Investigation

• Naval Criminal Investigation Services

• Internal Revenue Services

• Behavioral Analysis Unit

Which of the following forms will you receive each year from your employer to show how much was withheld from your check for taxes and other deductions?

• W-2

• W-4

• 1099

• 1040

Taxes are payments made to the government on a variety of sources. Which of these can be taxed?

• income

• business profits

• general purchase of goods and services

A percentage of money taken from individuals or businesses is referred to as

• property tax

• excise tax

• income tax

• sales tax

Revenue is the money that the government brings in for use on government expenditures. The term used to define the source of revenue is

• tax base

• revenue base

• money base

• money stream