WorksheetsChapter 8 lesson 1 & 2
Total questions: 29
Worksheet time: 1hrs 27mins
What is the main idea of filing your federal tax return?
To ensure you receive a refund every year
To make sure the taxes you owe are settled each year, either with a refund or another payment
To pay more taxes than necessary
To avoid paying taxes altogether
What is a Tax Bracket?
A method of filing your taxes
The total tax a person or business has to pay
The income ranges in which tax rates apply
A type of tax return
When is Tax Day, the annual deadline for filing your income taxes?
December 31
April 15
July 4
October 15
What does a Tax Return represent?
A report that details the government's earnings
A document that outlines the taxpayer's income sources
A report that a taxpayer submits annually to the government to determine a person's tax liability
A summary of all the taxes a country collects in a year
According to the chart, what is the tax liability for a single filer who made $60,000 and took the standard deduction of $12,400, ending up with $47,600 of taxable income?
$6,262.00
$3,630.00
$1,644.50
$9,876.00
What is the deadline for filing your tax return for the previous calendar year?
January 31
April 15
December 31
July 15
If you don't file your taxes, what is the minimum failure-to-file penalty?
$100
5% of your unpaid taxes for each month your tax return is late
The total amount of unpaid taxes
$435 or 100% of the taxes you owe, whichever is less
What is the average tax refund in 2019 for 2018 taxes?
$2,732
$3,000
$1,500
$2,500
What can you do to avoid overpaying or underpaying your taxes throughout the year?
File your taxes on the last day
Adjust your Form W-4 correctly
Pay the minimum failure-to-file penalty
Wait for a refund to adjust the amount
Which category of people related to taxes aims to have as little withheld as possible and to keep their money during the year to put it to work?
Those who like getting big refunds every year
Those who don't like filing taxes at all
Those who carefully fill out their Form W-4
Those who pay the minimum failure-to-file penalty
What is Gross Income?
The amount a person owes in taxes at the end of the fiscal year
The amount you earn after taxes and other payroll deductions
The amount you earn before taxes and other payroll deductions
The total amount of debt a country owes to companies and other countries
Which of the following best defines Net Income?
The amount you earn before taxes and other payroll deductions
The amount a person earns after payroll taxes and other deductions are taken out
The smallest amount that employers can legally pay their employees per hour of work
A fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly
What is Deficit Spending?
The total amount of money earned from investments
The amount of tax a country owes to its citizens
Spending more than you earn, funded by borrowing rather than by taxation
The representation of stocks, bonds, currencies, mutual funds, etc., on paper
What is National Debt?
The amount of money saved by the government for future use
The total amount of debt a country owes to companies and other countries
The income generated by the work someone performs
The smallest amount that can be paid to an employee per hour of work
Which type of income requires little to no effort to maintain it?
Earned Income
Wage
Passive Income
Salary
According to the text, what are the two certainties in life mentioned by Benjamin Franklin?
Income and happiness
Death and taxes
Wealth and health
Success and failure
What are the two ways mentioned in the text that you'll personally feel the impact of taxes?
Taxes on the money you earn and taxes on the money you inherit
Taxes on the money you earn and taxes on the money you spend
Taxes on the money you save and taxes on the money you invest
Taxes on the property you own and taxes on the money you earn
How is gross income generally determined?
By the total amount of money you spend in a given pay period
By the total amount of money you save in a given pay period
By the total amount of money you earn in a given pay period
By the total amount of taxes you pay in a given pay period
What term is used to describe the amount of money left in your paycheck after all withholdings or deductions are taken out?
Gross income
Net income
Take-home pay
Disposable income
What has become less common for employers to provide to their employees today?
Direct deposit
Physical paychecks
Electronic transfers
Pay stubs
What type of tax is applied to the goods and services we buy?
Income tax
Property tax
Consumption tax
Inheritance tax
What is the term for the money that's collected in taxes and used by the government?
Tax debt
Tax revenue
Tax expenditure
Tax allowance
According to the pie chart, what percentage of federal spending is mandatory spending?
Which category does the pie chart indicate as the largest expenditure of federal income tax money?
What is the proposed federal budget for fiscal year 2020 according to the text?
$4.8 trillion
$3.8 trillion
$5.1 trillion
$1 trillion
Which of the following is NOT a type of income mentioned in the text?
Earned income
Passive income
Portfolio income
Active income
What is the main characteristic of passive income as described in the text?
Income from working full time
Income from regular employment
Income from activities that do not require active work
Income from government benefits
According to the text, what happens if you withhold too little from your paycheck?
You will receive a larger refund during tax time.
You will owe the government money.
You will be exempt from paying taxes.
You will receive a bonus from your employer.
What is the consequence of stopping work when you rely on earned income?
You continue to earn the same amount of money.
You start receiving passive income.
You stop earning money.
You begin to earn portfolio income.
