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PF - Ch. 3 Taxes Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

To computer your tax liability, turn to the tax tables and look up the amount called

a)

gross income

b)

adjusted gross income

c)

take-home pay

d)

taxable income

2.

Which of these is a form of flat tax?

a)

sales tax

b)

income tax

c)

property tax

d)

excise tax

3.

Tax returns must be file by __________ of the following year.

a)

January 31

b)

April 15

c)

December 31

d)

January 1

4.

As an alternative to itemizing deductions, taxpayers may

a)

file Form 1040EZ

b)

claim the standard deduction

c)

claim more exemptions

d)

file Form 1040A

5.

Student loan interest and tuition can be listed as ______ on Form 1040A.

a)

tax credits

b)

exemptions

c)

adjustments to gross income

d)

taxable income

6.

Money collected by the government from various sources is known as _________.

a)

tax

b)

audit

c)

revenue

d)

alimony

7.

A tax that increases in proportion to increases in income is known as a _________ tax.

a)

proportional

b)

progressive

c)

regressive

8.

Money earned by individuals that is subject to taxation is called ________ income.

a)

gross

b)

gross adjusted

c)

taxable

9.

In order to avoid itemizing deductions, a person may elect to take the _________, which is a flat amount.

a)

standard pay rate

b)

progressive rate

c)

flat rate

d)

standard deduction

10.

Expenses that can be subtracted from gross income are called _____________.

a)

deductions

b)

exemptions

c)

adjustments

11.

A _________ tax allows a higher-income person to pay a lower percentage of income in taxes than a lower-income person.

a)

gross

b)

progressive

c)

regressive

d)

proportional

12.

A type of tax for which the rate stays the same regardless of income is called _________.

a)

proportional

b)

regressive

c)

proportional

13.

The income tax is an example of a progressive tax.

a)

True

b)

False

14.

Money received in the form of wages, tips, salaries, or interest is taxable income.

a)

True

b)

False

15.

A taxpayer's filing status is unrelated to his or her marital status.

a)

True

b)

False