Chapter 10 Review

Withholdings and deductions are . . .

• Categories of a good budget

• Examples of deficit spending

• Expenses that are taken out of your paycheck

• Money that the government gives back to you

The tax on the purchase of goods or services is called __________________.

• Goods and services tax

• Purchase tax

• Income tax

• Consumption tax

The money you earn hourly for your time and effort at work is called your _____________.

• Wages

• Income tax

• Minimum wage

• Salary

What does the Form W-4 estimate?

• How much income you should be making.

• How many tax returns you need to submit.

• How much tax you'll owe based on your personal situation.

• How much money you'll spend in that fiscal year.

Every American who earns an income must file a __________ each year.

• Federal tax return

• Tax extension

• Tax deduction

• Paycheck

When you make __________ money, you will pay _________ in taxes.

• Less; more

• More; the same amount

• More; more

• More; less

If you work and earn money, you will have to pay taxes.

• True

• False

When you buy clothes or check out at the grocery store, you will pay ________.

• Income tax

• Excise tax

• With your tax credit card

• Sales tax

A fixed, annual rate of pay that doesn't change by working more or fewer hours is called ___________.

• Hourly wages

• Passive income

• Salary

• Commission

When someone says they need to file their taxes, they're talking about filling out a _________.

• Tax bracket

• Form W-4

• Federal tax return

• Tax liability