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Personal Finance- Chapter 10 Taxes

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Withholdings and Deductions are...

a)

Examples of Deficit Spending

b)

Expenses that are taken out of your paycheck

c)

Categories of a good budget

d)

money that the government gives back to you

2.

The tax on the purchase of goods or services is called...

a)

Consumption Tax

b)

Purchase Tax

c)

Minimum Wage

d)

Income Tax

3.

The money you earn hourly for your time and effort at work:

a)

Wages

b)

Salary

c)

Minimum Wage

d)

Income Tax

4.

What does the Form W-4 estimate?

a)

how much tax you'll owe based on your current situation

b)

how much income you should be making

c)

how much money you will spend in that fiscal year

d)

how many tax returns you need to submit

5.

Every American who earns an income must file a ____ each year

a)

Tax deduction

b)

Paycheck

c)

Tax Extension

d)

Federal tax return

6.

If you work and earn money, you will have to pay taxes.

a)

True

b)

False

7.

When you make ____ money, you will pay ____ in taxes.

a)

More; more

b)

More; less

c)

Less; more

d)

More; same amount

8.

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

a)

with your tax credit card

b)

sales tax

c)

excise tax

d)

income tax

9.

A fixed, annual rate of pay that doesn't change by working more or fewer hours is called...

a)

Salary

b)

Hourly wages

c)

passive income

d)

commission

10.

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

a)

Form W-4

b)

Tax Liability

c)

Federal Tax Return

d)

Tax Bracket

11.

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

a)

Form 1040

b)

Form I-9

c)

Schedule C

d)

Form 1099-DIV

12.

Property tax, inheritance tax, estate tax, and gift tax are all examples of ____

a)

Income Tax

b)

Wealth Tax

c)

Family Tax

d)

Paycheck Tax

13.

There are two general types of taxes. Taxes on the money you ____, and taxes on the money you ____.

a)

Give; Save

b)

Budget; Don't budget

c)

Have; Want

d)

Earn; Spend

14.

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

a)

income tax

b)

sales tax

c)

tax liability

d)

excise tax

15.

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

a)

Passive income

b)

Active income

c)

Salary

d)

Portfolio Income

16.

The deadline for filing your income tax return usually falls on...

a)

April 15

b)

October 13

c)

August 15

d)

July 4

17.

Which of the following is most likely to need the help of a tax professional?

a)

Salaried Workers

b)

Minimum wage Workers

c)

College Graduates

d)

Self-Employed People

18.

Only a few states have inheritance tax, which is...

a)

tax on land, homes, and business property thats paid every year

b)

Requires you to pay tax on an asset you receive when someone passes away

c)

is paid if you sell an inherited gift, like a house

d)

is applied to a gift over $15,000

19.

Net income is also called your ____

a)

Gross Income

b)

Fiscal Year

c)

Discretionary Spending

d)

Take-Home Pay

20.

When you pay taxes on a purchase, the seller gets to keep the money.

a)

True

b)

False

21.

You can produce ____ by buying and selling stocks, bonds, mutual funds, and real estate.

a)

a large income

b)

tax deductions

c)

HSA's

d)

Portfolio/investment income

22.

Those who properly fill out their W-4 Form shouldn't have too much or too little of taxes withheld.

a)

True

b)

False

23.

Using online tax software or hiring a tax professional are both good options depending on your situation.

a)

True

b)

False

24.

Wealth taxes are often dependent on ____, so it's a good idea to understand the tax rules ____.

a)

Your community; of your neighborhood

b)

If you went to trade school; in your particular field of study

c)

Where you live; in your state

d)

Your age; for your generation

25.

Government deficit spending is a good thing because it lowers the amount of taxes that need to be collected.

a)

True

b)

False

26.

Consumption tax pays for things everyone gets to enjoy, like...

a)

A thicker wallet

b)

Parks, Libraries, and zoos

c)

Health insurance premiums

d)

Privare Schools

27.

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

a)

True

b)

False

28.

What is the total tax a person or business has to pay called?

a)

Tax Return

b)

Income Taxes

c)

Tax Day

d)

Tax Liability

29.

Always keep your filed taxes for at least three years in case the IRS decides to ____ your tax return.

a)

Audit

b)

Review

c)

Reject

d)

Submit

30.

Giving to a non profit organization can help lower your taxable income.

a)

True

b)

False