Income - Lesson Three: Taxes and My Income

Income Tax is:

• a tax on the income of individuals or entities

• a tax on goods and services

• a tax on property ownership

• a tax on financial transactions

Medicare is a:

• government health insurance program for people aged 65 and older

• private health insurance plan

• type of medical treatment

• hospital in the United States

What is Social Security?

• A government program that provides financial assistance to retirees and disabled individuals.

• A type of insurance for private companies.

• A savings account for education expenses.

• A healthcare plan for children.

What are Taxes?

• A type of government revenue

• A form of currency

• A type of investment

• A type of loan

What is the difference between gross income and net income?

• Gross income is the total earnings before deductions, while net income is the earnings after all deductions.

• Gross income is the earnings after all deductions, while net income is the total earnings before deductions.

• Gross income and net income are the same.

• Gross income is only applicable to businesses, while net income is only applicable to individuals.

Which of the following is a main source of tax revenue?

• Income tax

• Sales tax

• Property tax

• All of the above

List two services that are federally supported.

• Social Security, Medicare, national defense, veterans, foreign affairs, interest payments on the national debt, physical, community, and human development programs, social programs, law enforcement, and government administration.

• Public transportation, local schools, state parks, city libraries.

• Private businesses, local restaurants, state fairs, community markets.

• International corporations, private universities, local charities, neighborhood associations.

List two services that are state or city supported.

• Public schools, local libraries, police, jails, courts, local parks and recreation, social services, firefighters, elections, mass transportation.

• Private schools, private clubs, private security, private hospitals.

• International airports, national defense, foreign embassies.

• Space exploration, international trade agreements, national currency production.

Fill in the blank: Property taxes are based on a property's ________.

• value

• location

• age

• size

Khaila is a world renowned TikTok food blogger. Her annual salary, before any deductions, is $188,000. Each year she pays around $8,500 in state income tax. Using the information provided calculate:

Khaila's GMI $__________