General Tax Questions
True or False: Everyone in the U.S. pays the same tax rate.
A) True
B) False
B) False
What is a tax you pay when you purchase items in a store?
A) Property tax
B) Payroll tax
C) Sales tax
D) Income tax
C) Sales tax
What is a tax refund?
A) Money returned to you if you paid more taxes than owed
B) A fee you pay for filing taxes late
C) The amount of taxes you owe
D) A bonus for filing taxes early
A) Money returned to you if you paid more taxes than owed
If you receive tips at a job, do you need to pay taxes on them?
A) Yes
B) No
A) Yes
True or False: You have to pay taxes on lottery winnings.
A) True
B) False
A) True
What do taxes pay for?
A) Vacations for government employees
B) Private businesses
C) Public services like schools and roads
D) Personal savings accounts
C) Public services like schools and roads
What type of tax is charged on homes, land, or buildings?
A) Property tax
B) Sales tax
C) Payroll tax
D) Federal tax
A) Property tax
What does "net income" mean?
A) Total income before taxes
B) Income left after deductions and taxes
C) The amount you owe in taxes
D) All the income you earned in a year
B) Income left after deductions and taxes
What happens if you don’t pay your taxes?
A) You get a refund anyway.
B) You pay penalties and interest.
C) Your taxes are forgiven.
D) Nothing happens.
B) You pay penalties and interest.
What does the IRS stand for?
A) Internal Revenue System
B) International Revenue Service
C) Internal Revenue Service
D) Individual Revenue System
C) Internal Revenue Service
What is the federal income tax filing deadline?
A) March 15
B) April 15
C) May 15
D) June 15
B) April 15
If you own a business, what tax do you pay on the money your business earns?
A) Sales tax
B) Corporate tax
C) Payroll tax
D) Property tax
B) Corporate tax
What does "gross income" mean?
A) Total income earned before deductions
B) Income after taxes are deducted
C) The amount of taxes you owe
D) Total amount of savings after taxes
A) Total income earned before deductions
What is the IRS's primary role?
A) Collecting taxes and enforcing tax laws
B) Helping taxpayers get refunds
C) Setting state tax rates
D) Providing loans to small businesses
A) Collecting taxes and enforcing tax laws
What state has no sales tax?
A) Texas
B) Oregon
C) Florida
D) Nevada
B) Oregon
What is the purpose of a W-4 form?
A) It helps you file your taxes.
B) It tells your employer how much federal tax to withhold.
C) It calculates your tax refund.
D) It lists your income for the year.
B) It tells your employer how much federal tax to withhold.
What type of tax do you pay on the money you earn from a job?
A) Sales Tax
B) Property Tax
C) Income Tax
D) Estate Tax
C) Income Tax
What is a tax bracket?
A) The amount of taxes owed on specific purchases
B) The range of incomes taxes at a specific rate
C) The total tax you owe for the year
D) The penalty for filing taxes late
B) The range of incomes taxes at a specific rate
What happens if you knowingly fail to pay your taxes and evade payment?
A) You receive a warning letter
B) You may face criminal charges, fines, and imprisonment
C) You lose your ability to file in the future
D) You are permanently barred from refunds
B) You may face criminal charges, fines, and imprisonment
How many states do not have a state income tax?
A) 0
B) 2
C) 6
D) 9
D) 9 (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming)
What is the name of the form you receive from your employer to file taxes?
A) W-4
B) W-9
C) W-2
D) 1040
C) W-2
What is the tax rate for most Social Security deductions?
A) 7.5%
B) 6.2%
C) 5.8%
D) 4.5%
B) 6.2%
What is the standard form most people use to file their federal taxes?
A) 1099
B) 1040
C) W-2
D) W-4
B) 1040
If you fail to pay your taxes by the deadline, what penalty might you face?
A) 1% of unpaid taxes per month, up to 12%
B) 5% of unpaid taxes per month, up to 25%
C) 10% of unpaid taxes, no maximum
D) No penalty unless you owe more than $5,000
B) 5% of unpaid taxes per month, up to 25%
What is the average amount of time the IRS says it takes to complete a basic tax return?
A) 4 hours
B) 8 hours
C) 12 hours
D) 16 hours
B) 8 hours