Understanding Taxes and Budgeting

Which of the following best defines income tax?

• A tax paid on the money you earn from working.

• A tax paid when you buy goods or services.

• A tax paid for owning a house or land.

• A tax paid for using public transportation.

What is payroll tax?

• A tax paid on the value of your property.

• A tax taken out of your paycheck by your employer.

• A tax paid when you buy a car.

• A tax paid for using a credit card.

Which of the following is an example of sales tax?

• Paying extra money when you buy a new video game.

• Paying money each year for owning a house.

• Having money taken out of your paycheck.

• Paying a fee to use an ATM.

Tags

CCSS.7.RP.A.3

What is property tax?

• A tax paid on the money you earn.

• A tax paid for owning land or a house.

• A tax paid when you buy clothes.

• A tax paid for using a debit card.

What is the main difference between gross income and net income?

• Gross income is after taxes, net income is before taxes.

• Gross income is before taxes, net income is after taxes.

• Gross income is only from gifts, net income is from work.

• Gross income is always less than net income.

• $600

• $400

• $500

• $100

Tags

CCSS.7.NS.A.3

Which statement is true about net income?

• Net income is the total amount you earn before any deductions.

• Net income is the amount you take home after taxes and deductions.

• Net income is always more than gross income.

• Net income does not include bonuses.

Tags

CCSS.7.RP.A.3

Which of the following is an advantage of using a debit card?

• You can spend more money than you have in your account.

• You do not have to pay interest on purchases.

• You can build your credit score easily.

• You get cash back on every purchase.

What is a disadvantage of using a credit card?

• You must pay the full amount immediately.

• You may have to pay interest if you do not pay the balance in full.

• You cannot use it for online shopping.

• It is not accepted in most stores.

Which payment method allows you to pay bills online quickly and easily?

• Cash

• Electronic payment

• Check

• Money order