Worksheets3 Income Tax
Total questions: 20
Worksheet time: 1hrs 27mins
1. Federal income taxes are regressive.
True
False
2. Consumption taxes are taxes on goods and services.
True
False
3. On a local level, taxes pay for services such as education, parks, roads, and police, fire, and health departments.
True
False
4. In the United States, all citizens are expected to prepare and file tax returns on their own without being forced to do so by the government.
True
False
5. A tax for which the rate stays the same, regardless of income, is called a
a.
proportional tax.
b.
consumption tax.
c.
regressive tax.
d.
progressive tax.
6. Which of the following is an example of a flat tax?
a.
consumption tax
b.
federal income tax
c.
property tax
d.
sales tax
7. Your filing status on your tax return is based on
a.
your occupation.
b.
your age.
c.
your income.
d.
your marital status.
8. You must file your tax return by this date every year.
a.
January 1
b.
April 15
c.
June 1
d.
December 31
9. Your employer must have your w2 in the mail or given to you by
December 31st
January 1st
January 31st
December 1st
What does the IRS expect you to report as income?
Only wages from formal employment
Only physical goods and not virtual goods
Wages and any other form of earnings including virtual currency gains
Only large transactions over $10,000
11. A tax _____ is an amount subtracted directly from the tax owed.
a.
exemption
b.
credit
c.
deduction
d.
bracket
12. Tax _______are deducted form your taxable income
Dividends
Credits
Income
Deductions
- When do you start paying taxes?
When you turn 18
When you make more than the minimum income requirement
When you get a full-time job
When the IRS tells you to
A tax on money earned from working a job
Sales Tax
Property Tax
Income Tax
Taking payments out of your pay before you receive it.
withholding
tax return
taxable income
personal exemption
What does the term "withholding" mean in reference to your paycheck?
The amount of your paycheck that you are NOT being taxed on
How much you are going to owe the government when you file your annual tax return
How much you earn and includes salary, bonus and commissions
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
What does the IRS expect you to report as income?
Only wages from formal employment
Only physical goods and not virtual goods
Wages and any other form of earnings including virtual currency gains
Only large transactions over $10,000
Which of the following statements best describes the difference between a W-2 and W-4 form?
A W-2 Form is filled out by the employee, while the employer fills out the W-4 form.
A W-2 form and a W-4 form are both filled out by the employer to report an employee’s income to the IRS.
A W-2 form is a summary of annual earnings and taxes withheld provided by the employer, while the employee fills out a W-4 form to determine tax withholding.
A W-2 form and a W-4 form are both used by the employee to file their annual tax return.
20.If you don't file your taxes you can go to prison for
Tax Fault
Tax Evasion
Tax Default
Tax Alignment
