Income + Taxes
Knowledge
Federal Budget
100
The less money you make, the more taxes are taken out
True or False
False, the LESS money you make, the more you will not be taxed
100
Is your Netflix bill a ______ expeanse.
A. Fixed
B. Recurring
C. Recurring
100
The federal government has a deficit.
TRUE or FALSE
TRUE
200
AN INDIVIDUAL RECEIVES THIS FROM THEIR EMPLOYER, SPECIFYING WAGES & WITHHOLDINGS
A. 1040
B. W-2
C. W-4
C. W-2
200
You are LEGALLY required to file taxes after your earned income passes $14,600
TRUE or FALSE
TRUE
200
The amount of money needed to maintain a certain standard of living (including basic expenses such as housing, food, taxes, and healthcare) is often used to compare how expensive it is to live in one city versus another.
Cost of living
300
THE MAIN FORM AN INDIVIDUAL SENDS TO THE I.R.S. WHEN THEY FILE FEDERAL INCOME TAXES
A. 1040
B. W-2
C. W-4
A. 1040
300
Tori is a 20-year-old college junior who lives with her parents. She has a side gig as a graphic designer, and her net earnings were $2,150. Is Tori legally required to file taxes?
A. No, she still lives with her parents and does not make enough
B. Yes, she is self-employed and made more than the max for self-employed pay
C. No, she is a dependent
D. Yes, she is independent
B. Yes, she is self-employed and made more than the max for self-employed pay
300
The rate at which the price of goods increases and consumer purchasing power decreases over time
Inflation.
400
THIS FORM IS FILLED OUT TO INDICATE PREFERENCES FOR WITHHOLDINGS FOR FEDERAL INCOME TAXES
A. 1040
B. W-2
C. W-4
D. W-4
400
Which bill usually accounts for the largest part of your monthly expenditures?
A. Car loan
B. Rent/house payment
C. Water Bill
D. Electric Bill
B. Rent/House payment
400
What are the three types of taxes?
Progressive tax, regressive tax, and proportional tax.
500
TOTAL INCOME BEFORE TAXES, CONTRIBUTIONS, OR ANY OTHER EXPENSES...INCOME AFTER ALL WITHHOLDINGS; TAKE-HOME PAY
GROSS INCOME; NET INCOME
500
INCOME BASED ON SALES
A. COMMISSION
B. FREELANCE
C. HOURLY WAGE
D. SALARY
A. COMMISSION
500
The branch of the U.S. Treasury Department that collects taxes.
IRS (Internal Revenue Service)
600
How many income tax brackets are currently used?
Seven
600
Reinvesting earned interest back into the principal to
allow money to grow exponentially over time
Compound Interest
600
A high tax that is designed to raise revenue while reducing consumption of a socially undesirable product.
Sin Tax