Personal Finance Chapter 10
The deadline for filing your income tax return usually falls on _________.
April 15
What is the main IRS form that most Americans use to file their taxes?
Form 1040
Always keep you filed taxes for at least three years in case the IRS decides to ___________ your tax reture.
audit
The tax on the purchase of goods or services is called _____________.
consumption tax
There are two general types of taxes. Taxes on the money you ______ and taxes on the money you _________.
earn ; spend
When you buy specific items like cigaretts, alcohol, airline tickets, or gas, you will pay
excise tax
Withholdings and deductions are...
expenses that are taken out of your paycheck
Government deficit spending is a good thing because it lowers the amount of taxes that need to be collected.
false
When you pay taxes on a purchase, the seller gets to keep that money.
false
Every American who earns an income must file a __________ each year.
federal tax reture
When someone says they need to file their taxes, they're talking about filling out a ________.
federal tax return
What does the Form W-4 estimate?
how much tax you'll owe based on your personal situation
When you make ___________ money, you will pay _____________ taxes.
more ; more
Consumption tax pays for things everyone gets to enjoy, like...
parks, libraries, and zoos
Renting out property or selling content on a blog are examples of ________.
passive income
You can produce __________ by buying and selling stocks, bonds, mutual funds, and real estate.
portfolio/investment income
Only a few states have inheritance tax, which...
requires you to pay tax on an asset you receive when someone passes away
A fixed, annual rate of pay that doesn't change by working more or fewer hours is called _________.
salary
When you buy clothes or check out at the grocery store, you will pay ______
sales tax
Which of the following is most likely to need the help of a tax professional?
self-employed poeple
Net income is also called your ___________.
take-home pay
What is the total tax a perosn or business has to pay called?
tax liability
Getting a big tax refund is not necessarily a good thing.
true
Giving to a non profic organization can help lower your taxable income.
true
If you work and earn money, you will have to pay taxes
true
Those who properly fill out their Form W-4 shouldn't have too much or too little taxes withheld.
true
Using online tax software or hiring a tax professional are both good options dpeending on your situation.
true
The money you earn hourly for your time and effort at work is called your ___________.con
wages
Property tax, inheritance tax, estate tax, and gift tax are all examples of
wealth tax
Wealth taxes are often dependent on _________, so it's a good idea to understand the tax rules ___________.
wehre you live ; in your state