W!se Money Management (Taxes, Cost of Money, Budgeting)

What is gross income?

• An individual's income and receipts from nearly all sources

• Income after taxes and deductions

• Income from investments only

• Income from a single source

Which of the following is considered a mandatory deduction from income?

• Auto Deposit into Savings Accounts

• Charitable Donations

• Federal, State, and/or Local Income Taxes

• Life Insurance

What does FICA stand for in the context of deductions?

• Federal Insurance Contributions Act

• Federal Income Collection Act

• Financial Investment Contributions Act

• Federal Insurance Collection Act

Which of the following is an example of an optional deduction?

• Social Security & Medicare

• Court-mandated child support

• Retirement Investment Accounts (401(k)s, IRAs, etc.)

• Federal Income Taxes

What is a tax?

• A voluntary donation to the government

• Money that government requires people to pay for services

• A fee for using public transportation

• A fine for breaking the law

Which of the following is an example of a direct tax?

• Sales tax

• Income tax

• Value-added tax

• Import duty

Which of the following is a type of tax on income?

• Property Tax

• Sales Tax

• Income Tax

• Inheritance Tax

What type of tax includes excise and "sin" taxes?

• Property Tax

• Sales/Consumption Tax

• Inheritance Tax

• Capital Gains Tax

Which tax is applied to capital gains on assets like stocks?

• Income Tax

• Property Tax

• Capital Gains Tax

• Inheritance Tax

What is another name for the Inheritance Tax?

• Sales Tax

• Death Tax

• Property Tax

• Income Tax