Tax Knowledge Quiz

What does the Form W-4 estimate?

• How much tax you'll owe based on your personal situation.

• How much income you should be making.

• How much money you'll spend in that fiscal year.

• How many tax returns you need to submit.

Withholdings and deductions are . . .

• Examples of deficit spending

• Expenses that are taken out of your paycheck

• Categories of a good budget

• Money that the government gives back to you

Net income is also called your (a)   .

When you buy clothes or check out at the grocery store, you will pay _____________.

• Excise Tax

• Income Tax

• Sales Tax

• With your tax credit card

When someone says they need to file their taxes, they're talking about filling out a ________.

• Form W-2

• Tax bracket

• Tax liability form

• Federal tax return

When you buy specific items like cigarettes, alcohol, airline tickets or gas, you will pay _________.

• Excise tax

• Tax liability

• Sales Tax

• Income Tax

What is the main IRS form that most Americans use to file their taxes?

• Form 1040

• Form W-4

• Form W-2

• Form 1099-DIV

Getting a big tax refund is not necessarily a good thing.

• True

• False

Property tax, inheritance tax, estate tax, and gift tax are all examples of __________.

• Family Tax

• Wealth Tax

• Paycheck Tax

• Income Tax

Renting out property or selling content on a blog are examples of ______________.

• Active Income

• Salary

• Passive income

• Portfolio income