Taxes

Question 1

The total amount of money you have made on a paycheck before any payroll deductions.

Answer 1

Gross pay

Question 2

The total amount of money you have made on a paycheck after any payroll deductions.

Answer 2

Net Pay

Question 3

Form that employers send their employees at the end of the year that contains information regarding earnings that are needed to file for tax returns.

Answer 3

W-2 Form

Question 4

Form that employees give to employers that indicates how much of an employees paycheck is deducted for federal income tax.

Answer 4

W-4 Form

Question 5

A tax on wages, salaries, AND income from savings accounts, stocks, bonds, and rent.

Answer 5

Federal Income Tax

Question 6

How much is deducted from a taxpayers paycheck for federal income tax?

Answer 6

Depends on how much they make per year which determines what tax bracket they are in.

Question 7

A tax that funds programs that aid retired or disabled individuals.

Answer 7

Social Security Tax

Question 8

How much is deducted from a taxpayers paycheck for social security tax?

Answer 8

6.2%

Question 9

A tax that goes to aiding retired individuals with their hospital and medical expenses.

Answer 9

Medicare Tax

Question 10

How much is deducted from a taxpayers paycheck for medicare tax?

Answer 10

1.45%

Question 11

What is a tax that takes the same percentage of income from all income groups?

Answer 11

Proportional Tax

Question 12

What is an examples of a proportional tax?

Answer 12

Medicare Tax

Question 13

What is a tax that takes a larger percent of income from higher income groups than from lower ones?

Answer 13

Progressive Tax

Question 14

What is an example of a progressive tax?

Answer 14

Federal Income Tax

Question 15

What is a tax that takes a larger percent of income from lower income groups than from higher ones?

Answer 15

Regressive Tax

Question 16

What are two examples of a regressive tax?

Answer 16

Sales Tax

Social Security Tax

Question 17

Why is social security tax considered a regressive tax if a percentage is taken out of all paychecks?

Answer 17

It as a cap on how much is contributed.

Maximum contribution is $7,347 ($118,500/year)

Question 18

What is a tax paid on all goods and services at the time of purchase?

Answer 18

Sales Tax

Question 19

Sales tax is the largest source of revenue for which level of government? (local/state/federal)

Answer 19

State Government

Question 20

A tax on a good before it is sold to consumers (i.e. gasoline, liquor)

Answer 20

Excise Tax

Question 21

A tax levied by local government based on the value of the property you own.

Answer 21

Property Tax

Question 22

Property tax is the largest source of revenue for which level of government? (local/state/federal)

Answer 22

Local Government

Question 23

A tax on the transfer of property when a person dies.

Answer 23

Estate Tax

Question 24

A tax on donations of money or wealth and is paid by the person whom makes a gift.

Answer 24

Gift tax

Question 25

What is the maximum amount a person can gift without also paying a gift tax?

Answer 25

$14,000

Question 26

What forms of gifts are not taxable by the gift tax?

Answer 26

Tuition, medical expenses, gifts to spouse, 529 plans

Question 27

What are the three groups eligible for Social Security benefits?

Answer 27

Retired workers
Disabled workers (and families)
widows, widowers

Question 28

What age is considered retired?

Answer 28

65/66

Question 29

What is privatization?

Answer 29

Instead of the government setting money aside for retirement, the taxpayer would set it aside.