Types of Taxes
Social Security and Medicare
1040EZ
Business Taxes
Other
100
What is a tax on earned and unearned income?
Income Tax
100
Currently, what age do you need to reach to retire and receive full benefits?
67
100
As your income increases the amount of taxes you pay ____________.
increases
100
Income for a business using cash basis accounting includes revenue that is _______________________ during the year.
Received
100
Define depreciation.
Property losing value over the course of a number of years.
200
A fee to license a car is what kind of tax?
Property Tax
200
What percentage of earned income funds Social Security?
6.2%
200
The amount of Federal Income Tax withheld from your paycheck is determined by completing which form?
w-4
200
Income for a business using accrual accounting is based on a calculation of what has been _______________ during the year.
earned
200
What are dividends?
A sum of money paid, usually quarterly, by a company to it's shareholders.
300
What are three benefits of taxes?
Defense, Roads, Schools, Police, Fire Departments, Parks, Trails
300
What is Medicare?
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).
300
What is a W-2?
W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck. The form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year.
300
A partnership does not pay taxes, explain how a member of a partnership pays taxes in partnership.
Each partner pays income taxes on their share of the income received from the partnership.
300
List 3 states that do not charge Income tax.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.
400
Give an example of a hidden tax. Explain why it is considered hidden.
Excise tax. Built in to the price of the item.
400
What percentage of earned income funds Medicare?
1.45% from employee 1.45% from employer 2.9% Total
400
Who qualifies to complete a 1040EZ?
Your filing status is single or married filing jointly. You claim no dependents. You do not claim any adjustments to income. You do not claim any credits other than the earned income credit. You, and your spouse if filing a joint return, were under age 65 on January 1, 2016, and not blind at the end of 2015. Your taxable income is less than $100,000. You had only wages, salaries, tips, taxable scholarship and fellowship grants, unemployment and your taxable interest was not over $1,500.
400
Define double taxation.
If an officer of a cooperation is also a shareholder and receives income in the form of a dividend, that income will be taxed twice.
400
Name three states that don't charge sales tax.
Alaska, Delaware, Montana, New Hampshire, and Oregon.
500
What is the main difference between income tax and payroll tax?
Income tax is charged on earned and unearned income. Payroll tax is only charged on earned income.
500
Explain self-employment tax.
instead of 1.45% coming out of your paycheck and your employer matching it; you the self-employed person pay both sides.
500
What is a schedule, as related to taxes?
Additional forms that must be completed when filing taxes.
500
What is workers' compensation?
an insurance which provides protection for employees who may be injured on the job.
500
How are property taxes determined?
a certain percentage of the value of the property.
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