Financial Literacy: Taxes Quiz

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax A tax on earned and unearned income

A

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax The specific amount paid for this tax depends on many factors but increases as income increases

A

What is the Social Security program?

A federal government program that helps citizens fund retirement, as well as helps people who have a profound disability, are under the age of 18 & experience the premature death of a parent, or spouse in a family with minor children. Income at retirement (Income for retired people, People with disability, Children who lose parent. 6.2% of earned income.)

How do taxes relate to the principle "You are better off being in a community than by yourself?"

A group of people with common interest and concern for the common good, It would be difficult, individually,to create many of the benefits provided. Taxes are a way that members of a community can provide for the care and protection of each other in a variety of ways. Taxes help fund the creation of roads, public schools, libraries, police and fire departments, military for national security, government safety net programs, recreation (such as parks and trails), and much more. Without taxes, it would be difficult for you to individually create many of the benefits provided by being part of a community. Chances are that you have already benefited from taxes in some way today.

As a person living in the United States you are a taxpayer. What are two benefits you receive from the taxes you pay?

Attending a public school, driving on roads, law enforcement/fire dept/military to keep you safe.

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax Funds the Social Security and Medicare programs

B

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax This tax is determined by a set percentage of earned income

B

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax The fee to license a car is this type of tax

C

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax A tax that is added to the original price of an item purchased in retail stores

D

A. Income Tax B. Payroll Tax C. Property Tax D. Sales Tax E. Excise Tax The tax on airline tickets and gasoline

E

What is the difference between earned and unearned income? Provide at least one example of each type of income

Earned income is from working for pay such as wages or salaries. Unearned income is received from sources other than employment such as the interest from a savings account. Unearned from investments

If an employee owes $250 for payroll taxes, how much will the employer need to pay for payroll taxes?

Employers match their employees payroll tax, so it would be $250.

What is one difference between sales tax and excise tax?

Excise tax is included in the price of an item and sales tax is added to the price of an item. Excise taxes are charged on consumption items (such as gasoline, hotel rooms, alcohol, cigarettes, and airline tickets - varies by state, city, or county. Sales tax is a tax on items purchased in retail stores and varies by state or even by city or county. Sales: all items bought in retail store. Excise: Gas, Hotel , Airline tickets

What are two pieces of property besides an automobile that property taxes may be paid on?

House, land, boat, camper, motorcycle.

What is one difference between income and payroll tax?

Income tax: paid on both earned and unearned income. Payroll tax: paid on only earned income.

What is the Medicare program?

Main purpose is to help pay for health care for senior citizens in the USA. Healthcare at retirement (Healthcare for retirees. 1.45% of earned income.)

What are two items or services that federal income tax helps pay for?

Operations of federal government, Government programs: Education, Defense of nation, and disaster relief. Military and Education