| Total amount of money a worker earns in a pay period | gross pay |
| Total amount of money a worker takes home in a pay period | net pay |
| Another term for net pay is | take-home pay |
| What is NOT the main purpose of taxation ? | Retailing |
| Public programs such as nation defense, public schools, Social Security, and fire and police protection are all paid for through | tax revenue |
| A sales tax is sent to the government by | the merchant who sold the item |
| Real estate taxes are calculated based on the | estimated value of the property |
| In general, which type of tax is typically used to fund local schools ? | real estate |
| Federal income taxes, state taxes, and Social Security withholding’s are all | payroll taxes |
| FICA refers to payroll taxes withheld for | Social Security and Medicare |
| Which of the following would LEAST likely be included on an employee’s pay stub ? | the employee’s total tax owed for the year |
| What is the government body that enforces federal tax laws and collects the taxes ? | IRS |
| You would use a 1040 or a 1040EZ to | file a tax return |
| Taxes are figured based on your earnings during which time period | the calendar year |
| The deadline for filing your federal tax return each year is | April 15th |
| A tax paid as part of the purchases price of an item | sales tax |
| The total amount of money an individual takes home during a pay period | net pay |
| Money for the government withheld from an individual’s paycheck | tax |
| Any money collected by a government from its citizens for the purpose of operating the government | payroll tax |
| the total amount of money an individual earns in a pay period | gross pay |
| an annual report of all information related to your income taxes | tax return |
| a tax paid to the government based on the value of the property an individual owns | real estate tax |
| primarily used to fund local schools | real estate taxes |
| include federal and state income taxes | payroll taxes |
| a tax for which taxpayers often receive a separate bill | real estate taxes |
| collected by merchants and sent to the government | sales taxes |
| are not paid in the same way by people who are self employed | payroll taxes |
| imposed by many states but not by the federal government | sales taxes |
| include FICA payments | payroll taxes |
| ____ may be listed as OASDI (Old-Age, Survivors and Disability Insurance) | Medicare and Social Security taxes |
| An employer matches employees’ contributions to ___ and sends the total amount to the government | FICA taxes |
| What provides payments to eligible retirees and people with disabilities | Social Security |
| Medicare is a government ____ program | health insurance |
| In general, the more money a person earns, the ____ they must pay taxes | higher the rate is at which |
| typically a tax of 6.20% of your salary | Social Security |
| a tax of 1.45% of your salary | Medicare |
| the amount of salary taxed is capped at a certain level | Social Security |
| FICA tax | both Social Security and Medicare |
| a government health insurance program | Medicare |
| benefits for older Americans | both Social Security and Medicare |
| Single, head of household, and married filing joint return are all examples of | filing status |
| in general, your applicable tax rate and rules differ depending on which ____ you chose | filing status |
| Most people are considered dependents of their parents or guardians by the IRS until they reach the age of | 18 |
| When your parent or guardian claims you as a dependent on a tax return, they are able to | lower what they owe in taxes |
| The first step in determining the amount of federal tax you owe is | calculating your gross income |
| Shortly after the end of the year, you will receive a ____ form summarizing all of your relevant income and tax withholding information from each employer you worked for during the year | W2 |
| AGI stands for | adjusted gross income |
| A winner of any cash prize, such as those won in a lottery, or game show, totaling over $600 would be best advised to expect a pay about ____ of the prize in taxes | 50% |
| What source of income would NOT be counted as part of an individual’s gross income ? | child support payments reveived |
| The standard deduction is a fixed amount ___ are allowed to deduct from their ____ to reduce their tax liability | all taxpayers; AGI |
| The amount of the standardizes deductions varies according to your ___ and whether you are over or under the age of 65 | filing status |
| Which of the following would you currently LEAST likely be able to claim as an itemized deduction on your federal tax return | money paid in rent |
| Accurate completion of your tax return will show whether you underpaid your taxes and need to pay additional income tax or if you overpaid and will receive a | refund |
| When filing their tax returns, some low income families will receive more money back in the form of a ____ than was withheld from their paychecks | earned income credit |
| figured by taking an individual’s total income and subtracting certain allowable amounts | adjusted gross income |
| a fixed amount anyone is allowed to subtract from their AGI to reduce tax liability | standard deduction |
| a specific expense that can be subtracted from an individual’s AGI to reduce tax liability | itemized deduction |
| the total amount of a person’s income from almost any source | gross income |
| the positive difference between what you sold an asset for and what you paid for it | capital gain |
| Briefly explain the purpose of taxation | run government, schools, services such as police, and fire department |
