Local, state, and federal governments affect personal taxes in which of the following ways?

Personal taxes are defined as which of the following and how are they utilized?

Personal Income Tax: Is a ______ tax levied on the income of a person. (Fill in the blank)

Personal Income Tax: Revenues help fund programs and services such as ______, Medicare, schools, roads, national security and the welfare system. (Fill in the blank)

Earned income results from which of the following?

Which of the following is NOT considered earned income?

Which of the following is considered unearned income?

Which of the following is NOT a service funded by local government taxes?

State governments use taxes to deliver public services such as:

Federal governments use taxes to establish and maintain _______ and health programs.

Local governments use taxes to protect citizens against local health emergencies and neighborhood crime.

Which level of government is responsible for providing congressionally mandated programs and disaster relief?

Tax brackets refer to a range of _______ subject to a certain income tax rate.

In a progressive tax system, higher earnings fall into brackets with _______ rates.

Lower incomes fall into tax brackets with relatively low-income tax rates.

How many different tax brackets are included in the tax system described in the passage?

Which of the following is NOT one of the tax bracket percentages listed in the passage?

What is the total amount of tax debt owed by an individual, corporation, or other entity to a taxing authority called?

The Internal Revenue Service (IRS) is mentioned as a taxing authority in the passage.

If there are back taxes—any taxes which remain unpaid from previous years—what happens to them?

What form reports an employee’s annual wages and the amount of taxes withheld from the paycheck?

Which of the following is NOT included in the details provided by a W-2 form?

The W-2 form must be provided to employees on or before ________ of each year.

What is the form used by an individual’s employer to withhold the proper amount of federal income tax from the taxpayer’s paycheck?

What is withholding tax?

To qualify for an EITC payment, a taxpayer must have a valid ________ number.

Which of the following is NOT a criterion to qualify for an EITC payment?

Individual tax returns must be submitted by which date each year?

Form 1040 is used by all employed individuals to file ________.

1040-SR is a version of the tax form for individuals above the age of 65.

Self-employed individuals must pay a self-employment tax made up of a 12.4 percent Social Security tax and a ________ percent Medicare tax on net earnings.

Net earnings for self-employed individuals are found by ________ business expenses from gross income.

Self-employed individuals must use a ________ to report income and expenses to the IRS.

Tax breaks are incentives provided by the government to reduce the amount of tax owed, and they are utilized to encourage certain behaviors or investments. Which of the following best describes tax breaks and their utilization?

The differences between standard and itemized deductions are:

The different forms of tax credits available for taxpayers include:

What is the penalty for failing to file taxes on time?

If a taxpayer continually ignores taxes, which of the following could the IRS do?

A tax break is a savings on a taxpayer’s ________.

What is typically made available to stimulate the economy by increasing the amount of money taxpayers must spend which promote certain types of behaviors, such as purchasing energy-efficient appliances or attending college?

Which of the following is NOT an example of a behavior that can provide tax savings?

Tax deductions are typically expenses which the taxpayer incurs during the year and can be applied against or subtracted from the _______ to figure out how much tax is owed.

If a single filer’s taxable income for the tax year is $75,000, and the individual falls in the 22 percent marginal tax bracket, what is the total tax bill before any deductions?

Tax deductions lower a person’s tax liability by lowering the taxable income.

Tax deductions fall under two categories: _______ deduction and itemized deductions.

The portion of income which is not subject to tax and can be used to reduce a taxpayer's tax bill is called the _______ deduction.

The standard deduction can only be used if the taxpayer does not choose the itemized deduction method of calculating taxable income.

Itemized deduction is the eligible expense individual taxpayers can claim on _______ tax returns which decreases their taxable income.

Which of the following is claimable in place of standard deduction?

Itemized deduction allows the taxpayer to list out all their expenses for the year such as property tax, medical expenses, eligible charity donations, and _______ business expenses.

Taxpayers are allowed to choose between standard deduction and _______ deduction.

Only a taxpayer eligible for the standard deduction can choose it.

Which of the following is NOT eligible to claim the standard deduction?

If the taxpayer is filing as 'married, filing separately', and the taxpayer’s spouse itemizes, can the taxpayer claim the standard deduction?

A tax credit is a tax break which reduces a taxpayer’s tax _______ and has a greater impact than deductions.

If an individual owes $$3,000 to the government and is eligible for a$$ 1,100 tax credit, how much will they have to pay after the credit is applied?

A tax credit reduces the _______ amount of tax owed.

Which of the following is more favorable than a tax deduction or exemption, since it reduces tax liability dollar for dollar?

Tax credits can be granted in several forms. Which of the following is NOT one of them?

Nonrefundable tax credits are items directly deducted from the ______ until the tax liability equals $0.

Nonrefundable tax credits can be carried over to future years if not used.

Which of the following is an example of a refundable tax credit?

Partially refundable tax credits can both decrease ______ and lower tax liability.

If a taxpayer reduces the tax liability to $0 before using the entire portion of a partially refundable tax credit, the remainder may be taken as a ______ credit.

What is a charitable donation?

Charitable donations are commonly in the form of _______.

Which of the following can also be considered a charitable donation?

A gift to a qualified charitable organization may entitle the taxpayer to a charitable contribution deduction against the income tax if the taxpayer _______ deductions.

Most charitable organizations qualify for a charitable contribution _______.

Which of the following is NOT a step in figuring taxes?

Gross taxable income includes which of the following?

Standard deductions are set by the _______.

Positive numbers in your tax calculation mean taxes are owed to the IRS; negative numbers indicate a _______ will be sent from the IRS.