Federal Taxes

What does the term "Tax Bracket" refer to?

• The total tax that a person or entity has to pay.

• The report that a taxpayer must file annually.

• The income ranges and the tax rates that apply to them.

• The process of determining one's income.

What is "Tax Liability"?

• The process of filing a tax report.

• The income ranges and the tax rates that apply to a taxpayer.

• The total tax that a person or entity (business) has to pay.

• The document that outlines a taxpayer's financial transactions.

What is the purpose of a "Tax Return"?

• To report the total income of a person or entity for the year.

• To determine the tax rates applicable to different income ranges.

• To outline the financial transactions of a taxpayer.

• The report that a taxpayer must file annually which is used to determine their tax liability.

What determines how much you will have to pay in taxes?

• Your employer

• Your W-4

• Your tax bracket

• Your bank balance

What is the range of the percentages for tax brackets?

• 5% to 30%

• 10% to 37%

• 15% to 40%

• 0% to 35%

What is the purpose of your W-4 form?

• To report your annual income

• To determine your tax refund

• To tell your employer how much money to withhold from your paycheck for taxes

• To calculate your taxes owed

How is your tax bill in the Spring determined?

• The amount of money withheld by your W-4 plus your taxes owed

• Your annual income minus your taxes owed

• Your taxes owed minus the amount of money withheld by your W-4

• Your bank balance minus your taxes owed

What can the result of your tax bill calculation be?

• Either a refund or money owed

• Always a refund

• Always money owed

• A loan from the government

What does owing a bunch of money on your taxes imply?

• You have saved enough money throughout the year.

• You have overpaid your taxes.

• You are not holding enough back.

• You have received too many refunds.

What is a W-2 form?

• A form that states your eligibility for employment.

• A form that states who you work for and how much money you made.

• A form that states your tax exemption status.

• A form that states your retirement plan contributions.