Taxes Review

Sara wants to purchase new equipment for her home office. The sales tax rate that will apply when she makes her purchase is 6%. Here is a list of items she wants to purchase:

• keyboard, $12.99

• mouse, $10.99

• 22-inch monitor, $119.99

• chair, $149.99

• What is her total after taxes?

Mathematical Equivalence

ON

Which phrase refers to the failure to pay legally due taxes?

• tax avoidance

• tax deferrment

• tax evasion

• tax liability

What type of tax are sales tax and excise tax?

• deferred tax

• direct tax

• investment tax

• indirect tax

Which of these is a program or service supported by taxes? (Select all that apply)

• Public education

• Public parks

• Shopping malls

• Social Security

What is the effective tax rate percent for an individual whose taxable income is $120,000 and owes $18,945 in taxes? Round to the nearest tenth.

Mathematical Equivalence

ON

True or False: A nonrefundable tax credit can reduce the amount of taxes owed to zero and it can result in a refund.

• True

• False

Match the following forms to their purpose:

• To claim qualified expenses

• Form 1098

• To file a tax return

• 1099-int

• To report federal income tax withholding

• 1040X

• To report interest income

• W-2

• To file an amended tax return

• 1040