WorksheetsCredit, Taxes and Spending
Total questions: 35
Worksheet time: 35mins
This form will be sent to Lily by the end of January. She will use this W-2 form to…
Obtain employment
Receive her paycheck
File her income taxes
Begin her retirement savings
The official date for when taxes are due
January 15
February 15
March 15
April 15
The Federal government spends the most amount of tax money on...
Science
Veterans
Education
Health
Federal Taxes are paid from your check to the
Employer
U.S. Government
County
State
Which of the following taxes is applied to wages, salaries, dividends, and interest earned?
Corporate Income Tax
Income Tax
Estate Tax
Excise Tax
Local Governments earn the majority of their money from...
Property tax
Sales Tax
Corporate Tax
Fees
A tax rate is applied to an income range, or
Progressive Taxes
Tax Bracket
Other Taxes
Tax Credit
If you paid less than what the IRS thinks you owe in taxes, you have a
Refund
Tax bill
This type of tax is imposed on assets.
Property Taxes
Sales Taxes
Excise Taxes
These taxes are imposed on specific items.
Property Taxes
Sales Taxes
Excise Taxes
The main revenue sources for state and local governments are ____ ____, _____ ____, and ______ passed along from the federal government
Salex Taxes
Property Taxes
Revenue
All of the above
Brandon goes Christmas shopping and spends $1250 on gifts. None of them are tax exempt. If sales taxes in his state are 7.85%, what is the TOTAL cost of his purchases?
$1348.13
$98.13
$1151.87
$1250.00
What is Progressive Tax?
As income increases, your taxes increase
As income increases, you taxes decrease
Regardless of your income, you are taxed a flat rate
What is Regressive Tax?
As income increases, your taxes increase
As income increases, your taxes decrease
Regardless of your income, you are taxed a flat rate
Property Tax is a tax on the value of the ________ and _________.
mortgage
land
What government programs does property tax fund? Select 3 answer choices.
Medicare
Public Schools
Roads/Highways
Police/Fire
What is corporate income tax?
A tax on the products consumers buy
A tax on an individual's income
A tax on the profit earned by corporations
When you purchase a new pair of sneakers valued at $150, but are required to pay $158.50 at the register because there is a tax on the item, which type of tax have you paid?
Corporate taxes
General sales taxes
Individual income taxes
Property taxes
When looking at "discretionary spending" by our Federal Government, which category receives the most funding?
National Defense/ Military
Education
Veterans' Pensions
National Parks
Benjamin confides in Lily and Olivia that he has a low credit score after a financial setback. What is the single best way for Benjamin to improve his score?
Cancel his credit cards
Make on-time payments
Get a car loan
Check his credit score
Zoe is planning to buy a new car and is considering taking a loan. How can her credit score impact this financial situation?
Only consumers like Zoe with high scores can borrow and those with low scores cannot
Consumers like Zoe with low scores get lower interest rates on loans than those with high scores
Zoe's credit score can determine whether she is approved for the car loan and what the interest rate on that loan will be
It generally has no impact on Zoe's financial situation
Liam, Kai, and William are discussing the best way to use a credit card to boost their credit scores. They come up with different strategies. Which strategy will have the greatest impact?
Liam suggests spending up to the full credit limit on the card and paying off the bill in full every month on time
Kai suggests not using more than 30% of the credit limit on the card and paying it off in full every month by the due date
William suggests making the minimum payment required on the credit card every month by the due date
They also consider the option of putting the credit card in a drawer and not using it at all
Aiden is considering applying for multiple credit cards in a week. Ava advises him against it. Which of the following reasons could Ava have given to Aiden that could have a NEGATIVE impact on his credit score?
Paying down balances on your credit card accounts
Paying your bills on-time
Decreasing your utilization of credit
Applying for multiple credit cards in a short period of time (e.g., a week)
Which best describes the Debt Snowball method for paying off debt?
What is the best strategy to improve your credit score?
Take out as many loans as possible
Pay your bills on time and keep your credit utilization low
Close all your credit card accounts
Only use cash for all transactions
Which of the following is an example of a progressive tax?
Federal income tax in the United States
Sales tax
State income tax in some states
Payroll tax
Which of the following is a criticism of proportional taxation?
It benefits high-income earners disproportionately.
It is too complicated to implement.
It does not generate enough revenue.
It disproportionately affects low-income earners.
What is the main argument against regressive taxation?
It does not provide enough revenue for government services.
It takes a larger share of income from those who can least afford it.
It is too complex to administer.
It favors high-income individuals too much.
Income tax and Social Security are examples of ____taxes.
local
state
national
regional
A _____ tax is levied on manufacture and sale of specific items such as gas, alcohol and cigarettes.
property
income
excise
All are correct
