WorksheetsML FBLA Financial Literacy - Taxes
Total questions: 20
Worksheet time: 10mins
What is a tax?
A fee paid to the government
A donation to a charity
A loan from the government
A payment for goods and services
Why do people pay taxes?
To earn money from the government
To support government services like schools and roads
To save for retirement
To buy products from the government
Which of the following is a type of tax that people pay on the income they earn?
Sales tax
Property tax
Income tax
Luxury tax
What is the main purpose of income tax?
To fund social security programs
To fund government programs and services
To help people with personal loans
To reward workers with bonuses
What is the difference between a progressive tax and a regressive tax?
Progressive taxes take a higher percentage from lower incomes
Regressive taxes take a higher percentage from higher incomes
Progressive taxes take a higher percentage from higher incomes
There is no difference between the two
Which of these is an example of a regressive tax?
Income tax
Sales tax
Property tax
Inheritance tax
What is the purpose of Social Security tax?
To fund national defense
To provide financial support for people after retirement
To pay for local government services
To fund education programs
What is payroll tax?
A tax paid on the money you spend in stores
A tax that employees and employers pay to fund social services like Social Security and Medicare
A tax on the purchase of property
A tax on luxury goods
What is a sales tax?
A tax on income earned from a job
A tax added to the price of goods and services at the time of purchase
A tax paid only by businesses
A tax on the wealth of individuals
What is an example of something that might be taxed with a sales tax?
A paycheck
A car purchase
A mortgage payment
A home rent payment
Which of these taxes is collected by the federal government?
Sales tax
Property tax
Income tax
Local tax
What is the tax rate?
The amount of money someone owes in taxes
The percentage at which you are taxed
The date taxes are due
The tax refund you receive
What is an example of a tax deduction?
Money spent on groceries
The amount taken off your taxable income, such as student loan interest
Taxes paid on a car purchase
The extra tax paid for luxury items
What is a tax credit?
Money that reduces the amount of taxes you owe directly
A fee you must pay to the government
Money you receive back as a refund after filing taxes
An amount added to your taxable income
When are federal income taxes typically due?
January 1st
March 15th
April 15th
December 31st
What is a W-2 form?
A form used to report tips and bonuses
A form used to report income earned by employees and the taxes withheld
A form used to report investment income
A form used to request a tax refund
Which of these taxes are usually withheld from your paycheck?
Sales tax
Income tax and payroll tax
Property tax
Capital gains tax
What is the standard deduction?
A fixed amount that reduces your taxable income
A tax refund for low-income earners
The amount of tax you must pay based on your income
The tax rate for high earners
What is the main purpose of property tax?
To fund federal programs
To fund local services like schools and emergency services
To fund healthcare programs
To pay off national debt
What is a tax return?
A payment to the government for unpaid taxes
A form you file with the government to report your income and taxes owed or refunded
A list of tax rates for the year
A statement showing your property tax balance
