WorksheetsGHS Tax Concepts and Forms Quiz
Total questions: 20
Worksheet time: 10mins
What is the definition of "Exemptions" in the context of taxes?
Taxable income or investment on which no tax is collected.
A tax on the appreciation of an asset.
The annual amount of taxes paid on real property.
A tax levied on the right of an heir to receive property.
Which tax rate applies equally to everyone obligated to pay the tax?
Flat
Progressive
Regressive
Marginal
What is the purpose of Form I-9?
To verify citizenship or authorization to work in the U.S.
To report income on which tax was not withheld
To summarize employee earnings and deductions
To calculate property tax
What is the function of Form W-4?
Withholding allowance form employee fills out for employer
Reports income on which tax was not withheld
Verifies citizenship status
Summarizes employee earnings
What is income tax?
Tax levied on income, both earned and unearned
Tax on the appreciation of an asset
Tax on receipts from sales
Tax on the right of an heir to receive property
What is Social Security tax used for?
To fund the Social Security program
To fund property improvements
To fund inheritance distributions
To fund capital gains
What is the marginal tax rate?
The percentage of an additional dollar of income that is paid in tax
The percentage of total income paid in tax
The percentage of property value paid in tax
The percentage of sales paid in tax
What is a regressive tax?
Households with higher incomes pay a smaller share of their income in tax than households with lower incomes
Households with higher incomes pay a larger share of their income in tax
All households pay the same percentage of income in tax
Only businesses pay the tax
What is tax-deferred income?
Income to be taxed at a later date, such as interest/earnings from a traditional IRA.
Income that is never taxed.
Income taxed immediately upon earning.
Income from a part-time job.
What is a payroll tax?
A tax levied against the amount of wages and salaries paid workers.
A tax on goods and services.
A tax on property ownership.
A tax on investment earnings.
Payroll tax is based on which of the following?
Wages and salaries paid to workers
Investment earnings
Property value
Retirement account balances
Which of the following is NOT included in the definition of taxable income?
Tax credits
Deductions
Earnings
Income
If you contribute to a traditional IRA, what happens to the taxes on your earnings?
They are deferred to a later date.
They are paid immediately.
They are never paid.
They are paid by your employer.
Which of the following best describes the purpose of payroll tax?
To fund government programs through wages and salaries
To tax investment income
To tax property ownership
To tax business profits
Which income is taxed after all deductions but before tax credits?
Taxable income
Adjusted gross income
Payroll tax
Tax-deferred income
Why might someone prefer tax-deferred income?
To delay paying taxes until a later date
To avoid paying taxes entirely
To increase their payroll tax
To reduce their gross income
Which of the following is an example of tax-deferred income?
Earnings from a traditional IRA
Wages from a part-time job
Interest from a savings account
Dividends from stocks
Which of the following would NOT affect your AGI?
Property tax payments
Deductions
Gross income
Retirement contributions
Which form do you fill out prior to employment?
W2
W4
W9
I-13
Tax on the appreciation of an asset such as Stock and Real Estate
Regressive Tax
Marginal Tax
Level Up Tax
Capital Gains Tax
