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Managing Taxes and Legal Documents

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

The gasoline tax is a/an _________ tax.

a)

payroll

b)

income

c)

excise

2.

Gasoline tax funds are placed in the ___________ Trust fund.

a)

Defense

b)

Highway

c)

Medicare

3.

A W-2 form is provided by an employer to its employees to help them file their annual taxes.

a)

True

b)

False

4.

How will your family benefit if you purchase health insurance from a federal- or state-facilitated health insurance marketplace?


If you purchase health insurance from a federal- or state-facilitated health insurance marketplace, then you are eligible for a premium tax ___________.

a)

refund

b)

return

c)

credit

d)

deduction

5.

Payroll taxes help fund National Parks and Social Security funds.

a)

True

b)

False

6.

What level are payroll and Social Security taxes levied on consumers and businesses?

a)

Global level

b)

National Level

c)

National and Local level

7.

What level are income taxes, property taxes and sales taxes levied on consumers and businesses?

a)

Global level

b)

National Level

c)

National and Local level

8.

Bob borrows money from a bank to buy a property and retains the document until he has paid off the loan completely.


Match this situation with the contracts or documents that the individuals will sign.

a)

title

b)

will

c)

mortgage agreement

d)

passport

9.

Joseph purchases a vehicle and retains the document until he sells the vehicle.


Match this situation with the contracts or documents that the individuals will sign.

a)

title

b)

will

c)

mortgage agreement

d)

passport

10.

Libby shows this document to prove her identity while she travels abroad.


Match this situation with the contracts or documents that the individuals will sign.

a)

title

b)

will

c)

mortgage agreement

d)

passport

11.

Debby has signed a personal document and has left it with her attorney. In the document, she lists her wishes for her estate on her death.


Match this situation with the contracts or documents that the individuals will sign.

a)

title

b)

will

c)

mortgage agreement

d)

passport

12.

Gross pay minus deductions =

a)

Adjusted Gross Pay

b)

taxable income

c)

savings

d)

disposable income

13.

Adjusted Gross Pay minus tax =

a)

Adjusted Gross Pay

b)

taxable income

c)

savings

d)

disposable income

14.

disposable income minus personal spending=

a)

Adjusted Gross Pay

b)

taxable income

c)

savings

d)

disposable income

15.

taxable income minus taxes=

a)

Adjusted Gross Pay

b)

taxable income

c)

savings

d)

disposable income

16.

What happens if you fail to pay your annual taxes?

a)

you will have to pay twice the amount of taxes the next year

b)

you can file your return the next year

c)

you will have to pay penalty fees or face imprisonment, depending on the severity of nonpayment

d)

you will simply have to pay some penalty fees

17.

Caroline's Adjusted Gross Income (AGI) is $60,000. Due to an emergency, she had to spend $6,500 on medical expenses. Is she eligible for a tax deduction, and if so, how much?

a)

no; she is ineligible for a tax deduction

b)

no; her medical bill is less than 20% of her AGI

c)

yes; a tax deduction on any amount spent above 10% of her AGI

d)

yes; a tax deduction on the entire medical expense

18.

Grace is an accountant who lives in the state of Texas. Which tax is she exempt from?

a)

gasoline tax at the state level

b)

income tax at the national level

c)

inheritance tax at the state level

d)

payroll tax at the national level