Quiz about Chapter 6 - Income Taxes

Question 1

A tax based on the amount of money you earn. It is paid to the U.S. Government. Some states have this tax as well.

Accepted Answer

Income tax

Answer

property tax

Answer

sales tax

Answer

payroll

Question 2

The money added to the cost of items and for services. Usually paid when an item is purchased.

Accepted Answer

sales tax

Answer

income tax

Answer

property tax

Answer

payroll tax

Question 3

John buys a candy bar priced at $0.59. After the clerk adds tax, John pays $0.65 cents for the candy bar. What tax did John pay?.

Accepted Answer

sales tax

Answer

income tax

Answer

property tax

Answer

payroll tax

Question 4

Which of these is the smaller amount of money?

Accepted Answer

Net pay

Answer

Gross pay

Question 5

Which of these forms does your employer give you after getting a new job?

Accepted Answer

W-4

Answer

W-2

Answer

Form 1099

Answer

Form 1040EZ

Question 6

The total amount of income you receive is called your

Accepted Answer

gross income.

Answer

weekend income.

Answer

net income.

Answer

taxable income.

Question 7

An employee makes $48,000 per year. How much does he pay annually in Social Security taxes?

Accepted Answer

$2976.00

Answer

$258.33

Answer

$184.52

Answer

$2214.24

Question 8

A self-employed worker makes $7500.00 a month. He pays 7.35% towards a retirement account. How much does he accumulate after 30 years?

Accepted Answer

$198,450.00

Answer

$551.25

Answer

$6,615.00

Answer

Need more information.

Question 9

Required payments to a government are_______________.

Accepted Answer

taxes

Answer

income

Answer

income taxes

Answer

medicare

Question 10

A deduction is

Accepted Answer

money taken out of your income

Answer

gross income

Answer

money added to your income

Answer

net income

Question 11

Martha's net income is $500, if her gross income is $850, how much are her deductions?

Accepted Answer

$350

Answer

-$350

Answer

$500

Answer

$1350

Question 12

Which one is NOT a deduction

Accepted Answer

Sales tax

Answer

Health insurance

Answer

Payroll taxes

Answer

Federal income tax

Question 13

Calculate the tax amount if Mary earns $50 000 in a year and the tax rate is 15%.

Accepted Answer

$7 500

Answer

$42 500

Answer

$57 500

Answer

$1 500

Question 14

Which is a progressive tax?

Accepted Answer

Income tax

Answer

Corporation tax

Answer

VAT

Answer

National insurance

Question 15

The filing status with the highest standard deduction is

Accepted Answer

married filing a joint return

Answer

single

Answer

married filing a separate return

Answer

head of household

Question 16

The form _______tells you how much was taken out of your pay for the year.

Accepted Answer

W-2

Answer

W-4

Answer

1040

Answer

1040EZ

Question 17

To get your refund, which is faster: Direct Deposit or by Mail?

Accepted Answer

Direct Deposit

Answer

Mail

Question 18

What is the filing status for someone who has a child but is not married?

Accepted Answer

Head of Household

Answer

Single

Answer

Super Mom/Dad

Answer

Married -Filing Separate

Question 19

A tax credit is taken

Accepted Answer

as a deduction against tax liability.

Answer

in determination of taxable income.

Answer

on Schedule A as an itemized deduction.

Answer

is only available on Schedule SE - self-employment income.

Question 20

Select three items that can be used as itemized deductions

Accepted Answer

Medical and Dental Expenses

Accepted Answer

Home Mortgage Interest

Accepted Answer

State and Local Taxes

Answer

Personal Food and Rent Expenses

Question 21

When total tax payments are greater than the total tax, taxpayers has a(n)

Accepted Answer

Refund

Answer

Amount Due

Answer

Equal Balance

Answer

Credit

Question 22

When the total tax is greater than the total tax payments, taxpayers has a(an)

Accepted Answer

Amount due

Answer

Refund

Answer

Tax Credit

Answer

Tax Proportion

Question 23

Because federal income tax is a(n)_____, Phil paid federal tax at a higher rate when his wages increased.

Accepted Answer

Progressive Tax

Answer

Regressive Tax

Answer

Proportional Tax

Answer

Earnings Tax

Question 24

Social Security tax is a progressive tax?

Accepted Answer

False

Answer

True

Question 25

Linda's employer sent her a(n) _____, which summarizes her earnings and the amount withheld from her paychecks.

Accepted Answer

W-2 form

Answer

W-4 form

Answer

I-9 form

Answer

1040 form

Question 26

What's commonly referred to as the most important tax day of the year?

Accepted Answer

April 15

Answer

August 15

Answer

December 30

Answer

June 30

Question 27

Using the attached image, determine the tax for the filing status and taxable income amount single $57,355.

Accepted Answer

$10,138

Answer

$10,125

Answer

$7,684

Answer

$7,676

Question 28

Using the attached image, determine the tax for the filing status and taxable income amount: married filing jointly, $60,625.

Accepted Answer

$8,171

Answer

$10,950

Answer

$8,164

Answer

$8,179

Question 29

Use schedule Z (attached) to answer the following question as Head of Household. Calculate the tax for a head of household whose income is $155,000.

Accepted Answer

$33,834.50

Answer

$26,722.50

Answer

$25,400

Answer

$38,750

Question 30

You will need the information about Cardi for each of the following questions. Be sure to write the correct answer down before moving on to the next problem. Cardi works for Blanck Check Corporation. Her annual salary is $34,500. How much does she pay in Social Security annually?

Accepted Answer

$2,139

Answer

$21.39

Answer

$4,268

Answer

$42.68

Question 31

You will need the information about Cardi for each of the following questions. Be sure to write the correct answer down before moving on to the next problem. Cardi works for Blanck Check Corporation. Her annual salary is $34,500. How much does she pay in Medicare annually?

Accepted Answer

$500.25

Answer

$207,000

Answer

$50.25

Answer

$2,070

Question 32

If Cardi is paid biweekly, what is her biweekly gross pay?

Accepted Answer

$1,326.92

Answer

$2,875.00

Answer

$1,437.50

Answer

$2,653.84

Question 33

If Cardi is taxed at an annual rate of 2.5% for city tax, how much is deducted from her salary per paycheck for the city tax?

Accepted Answer

$33.17

Answer

$862.42

Answer

$86,250

Answer

$3,317

Question 34

Nikki is single with a taxable income for last year of $74,289. Use the tax table attached to determine Nikki's tax.

Accepted Answer

$14,363

Answer

$10,219

Answer

$14,375

Answer

$10,226

Question 35

Nikki is single with a taxable income for last year of $74,289. Her employer withheld $14,000 in federal taxes last year. Recall from #34 that she owes $14,363 in taxes this year. Does Nikki get a refund?

Accepted Answer

no

Answer

yes

Question 36

Nikki is single with a taxable income for last year of $74,289. Nikki owes $14,363 in taxes, but her employer only withheld $14,000 from her. What does she owe?

Accepted Answer

Nikki owes the government $363

Answer

The government owes Nikki $363

Answer

Nikki should get off the grid

Answer

Nikki owes the government $500.

Question 37

Drake had out-of-pocket medical expenses last year. His medical insurance covered 80% of these expenses. The IRS allows medical and dental expense deductions for the mount that exceeds 10% of a taxpayer's adjusted gross income. If Drake's adjusted gross income is $65,000, what is the maximum out-of-pocket expense that he could spend before he is allowed to claim a medical deduction?

Accepted Answer

$6,500

Answer

Drake can always claim all of his medical expenses as deductions.

Answer

$13,000

Answer

Drake can never claim any of his medical expense as a deduction.

Create a free account and access millions of resources

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics