Quiz 3 Flashcards
The largest source of taxes for the federal government is the _________.
individual income tax
The government began using the income tax after the ___________ to the Constitution which occurred in 1913.
16th amendment
_______ are the second highest source of federal revenue.
Social insurance taxes
To make it easier for taxpayers and the government, a ________ is taken from a worker’s paycheck.
payroll tax-a-tax
_________ is deducted from a paycheck as a withholding, or money taken from a worker’s pay before the worker receives it.
payroll tax
_______ is the government agency that collects the money for the federal government and administers the federal tax system.
IRS
_______ is a progressive tax based on the ability-to-pay principle of taxation.
federal income tax
Many taxpayers take a _________ or itemize deductions such as interest paid on a home mortgage state and local taxes charitable contributions, and certain portion of medical expenses.
standard deduction
Each year, taxpayers must complete a ________ , a form used to report income and taxes owed to various levels of government.
tax return
Taxes are to be filed by _______ each year.
April 15th
________ a payroll tax that provides coverage for the elderly, the unemployed due to disability, and surviving family members of wage earners who have died.
FICA
________ is also known as social insurance.
FICA
FICA encompasses ________ and _______.
social security and medicare
_________ is a federal program to aid older citizens who have retired, children who have lost a parent or both parents with disabilities.
Social Security
The employer and employee each pay ________ of the employee’s income up to an annual maximum.
6.2%
