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WorksheetsTaxes and Income Vocabulary and Definitions
Total questions: 25
Worksheet time: 15mins
Capital gain is defined as:
The profit from the sale of an asset or investment.
The interest earned on a savings account.
The amount of money borrowed from a bank.
The total revenue of a company.
Withholding refers to:
The amount deducted from an employee's wages for taxes
The total salary paid to an employee
The bonus given to an employee
The net salary after all deductions
Compound interest is a method of calculating interest where the interest earned is added to the principal, so that the interest is calculated on the new total in subsequent periods.
Simple interest
Compound interest
Fixed interest
Variable interest
A Dividend in the context of a company's profits is:
a portion of a company's earnings distributed to shareholders.
a type of tax imposed on company profits.
the total revenue generated by a company.
the net profit after all expenses are deducted.
Define Exemption in terms of taxable income.
An exemption is a portion of income that is not subject to tax.
An exemption is a tax rate applied to all income.
An exemption is a penalty for not paying taxes.
An exemption is a tax credit for low-income earners.
The Gig economy is:
a traditional employment model with long-term contracts
a labor market characterized by short-term contracts or freelance work
an economy based on agricultural and industrial sectors
a system where employees work for a single employer for their entire career
The purpose of an I-9 form is to:
Verify the identity and employment authorization of individuals hired for employment in the United States
File taxes with the IRS
Apply for a driver's license
Register to vote
Human capital is defined as:
The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
The physical assets owned by an organization or country.
The financial resources available to an organization or country.
The natural resources available to an organization or country.
A 1040 form is used for:
Filing individual income tax returns in the United States
Applying for a passport
Registering a vehicle
Enrolling in a university
Income tax is a tax levied on the ______ of individuals or businesses by the government.
income
property
sales
inheritance
Interest in financial terms refers to:
The cost of borrowing money or the return on invested funds
A type of insurance policy
A method of calculating taxes
A financial statement
A 1099 form provides information about:
Income received from self-employment, interest, dividends, and government payments
Employment income and tax withheld
Property taxes paid
Charitable donations made
A Dependent in terms of tax returns is:
A person who relies on another for financial support and can be claimed on their tax return.
A person who files their own tax return independently.
A person who is exempt from paying taxes.
A person who is responsible for paying someone else's taxes.
A W-2 form is used for:
reporting an employee's annual wages and the amount of taxes withheld from their paycheck
applying for a new job
filing a complaint against an employer
registering for health insurance
The W-4 form provides what information to an employer?
Employee's tax withholding preferences
Employee's health insurance details
Employee's retirement plan choices
Employee's emergency contact information
Non-income factors are:
factors that do not affect income
factors that affect income
factors related to income
factors that increase income
Opportunity cost is:
The cost of an alternative that must be forgone to pursue a certain action
The monetary cost of a product or service
The cost of production
The cost of labor
A Progressive tax is:
a tax that takes a larger percentage of income from high-income earners than it does from low-income individuals.
a tax that takes a larger percentage of income from low-income individuals than it does from high-income earners.
a tax that takes the same percentage of income from all individuals, regardless of income level.
a tax that is only applied to luxury goods and services.
What is Property tax based on?
Property value
Income level
Number of residents
Age of the property
A Regressive tax is:
A tax that takes a larger percentage of income from high-income earners than from low-income earners
A tax that takes a larger percentage of income from low-income earners than from high-income earners
A tax that takes the same percentage of income from all income earners
A tax that is only applied to luxury goods
Payroll tax is a tax that is typically imposed on which of the following?
Income earned by employees
Goods and services
Property ownership
Capital gains
Sales tax is a type of tax imposed on what?
Income
Property
Goods and services
Capital gains
Social Security is a government program that provides financial assistance to individuals. What does it primarily aim to support?
Healthcare services
Retirement income
Education funding
Business investments
What is the definition of 'income, disability benefits, and survivor benefits'?
What is a 'Standard Deduction'?
A fixed dollar amount that reduces the income you're taxed on
A type of tax credit
An additional tax on luxury items
A penalty for late tax filing
