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PF: Chapter 10 Lesson 2 Taxes on Your Paycheck

Total questions: 7

Worksheet time: 4mins

Name
Class
Date
1.

What are the three kinds of income?

a)

Active income, passive income, and investment income

b)

Salary income, rental income, and portfolio income

c)

Wage income, rental income, and portfolio income

d)

Earned income, passive income, and investment income

2.

Which type of income requires little to no effort to earn?

a)

Earned income

b)

Portfolio income

c)

Passive income

d)

Investment income

3.

What is earned income?

a)

Money earned from investments

b)

Money earned from renting out property

c)

Money earned from selling assets

d)

Money earned by working

4.

What is passive income?

a)

Money earned from investments

b)

Money earned from selling assets

c)

Money earned by working

d)

Money earned from renting out property

5.

What is portfolio income?

a)

Money earned from selling assets

b)

Money earned from renting out property

c)

Money earned by working

d)

Money earned from investments

6.

How is earned income taxed?

a)

At the federal level

b)

At the state level

c)

At the individual level

d)

At the employer level

7.

What form do you need to fill out when starting a job to determine tax withholding?

a)

Form 1040

b)

Form W-4

c)

Form W-2

d)

Form W-9