Chapter 5 Test/ Consumers Ed

Last year Pilar earned $32,000 before taxes working as a police officer. She also earned $9,600 before taxes working part-time on the weekends as a security guard. She had no other income during the year. The $41,800 she earned before taxes is known as what on her tax return?

adjusted gross income

When you are preparing your tax return, what is the total of your income from all sources?

adjusted gross income

Last year Kelly and Matt began placing $100 a week into an interest-bearing savings account at their bank. At the end of the year, the couple has saved $5,200 and had earned $173 interest. What form will the bank provide both the IRS and Kelly and Tom stating the interest earned on their account during the tax year?

1099-INT

What is the number you claim on your W-4 determines the amount of money withheld from you pay?

Allowances

Dwayne must cross a toll bridge every day he drives to work. What tax is the toll an example of?

Benefits received principle

Victor has been attending a plumbing trade school and will graduate next month. Before he graduates, he will pay to take his plumbing certification exam. In paying for the exam and his plumbing certification, what is the type of tax Victor must pay?

Buisness/ license tax

Employers pay twice as much social security and Medicare than each employee does.

False

Gross income is the amount you recieve after withholdings are subtracted from your gross pay

False

Most young people do not qualify to use the simplest of the income tax forms, 1040EZ

False

The IRS will impose a fine on any taxpayer who fails to sign his or her tax return before it it is filed.

False

For nine months Michael and his family have been receiving monthly benefits and payments through social security and mediacare. The money for these benefits is funded through taxation from a federal law. What is this known as?

Federal Insurances Contributions Act

Tien is a single, 20 year-old male with no children and shares an apartment with his best friend. His net income is approximately $15,000 per year. He owns no property or stocks ad has earned only $200 interest on his savings account. Which income tax form would he most likely use to report his taxes to the IRS?

Form 1040 EZ

By January 31 each year every U.S employer must provide each of its employees with a summary of his or her earnings and withholdings. Employees then use and enclose a copy of this form with their tax, forms in reporting their individual taxes. What is this form known as?

Form W-2

What is a form filled out by an employee that provides information needed to determine the proper amount to withhold frim his or her paycheck?

Form W-4

What is the name of the federal agency that collects and monitors income tax?

Internal Revenue services

When Naomi was two months old, her parents contacted the U.S government and received a number that is uniquely hers. Now that Naomi is working, she will need to memorize this number because it identifies her as a taxpayer and keeps track of her earnings and tax records throughout her lifetime. What is this number known as?

Social Security Number

What do employers have to withhold from your paycheck?

Social security taxes

According to the ability to pay principle of taxation, people who have higher incomes should pay a larger share of their income in tax

True

It is financially beneficial to save your money in a bank rather than let your employer withhold more taxes than

True

The federal agency that collects taxes if the Internal Revenue Service,

True

The law that requires workers to contribute to social security and Mediacare is the Federal Insurance Contributions Act.

True

The people whom you support financially, such as children, are dependents

True

Your W-4 helps your employer know how much to withhold from your pay

True

After completin her course work at a buisness college, Yvonne applied for work as an administrative assistant at several companies. She obtained a job with a markeeting research company and totday is her first day on the job. She is scheduled to meet with the Human Resource Manager and complete some additional forms and paperwork. What form will she complete that will provide her new employer with the information it will need to deduct the proper amount of withholdings from her paychecks?

W-4

What do state and local governments regulate?

buisness licenses, building permits, and driver's license

Last year Pete and Courtney earned over $80,000 in adjusted gross income. Earlier in the year the couple relocated to Houston, Texas, as a result of Courtney's promotion. They spent over $7,000 in moving expenses during this relocation process. They can subtract this moving expense from their income before calculating taxes. What is this moving expense known as?

deduction

Nigels mother, Helen, owned about 5,000 acres of lan. When Helen dies, her will stated that each of her three children was to recieve equal shares of this property. What type of tax will Nigel and his brother and sister most likely have to pay upon receipt of Helen's property?

estate tax

What are taxes on property that will be inherited frim a deceased person?

estate taxes

Janette wants to take her family on a vacation to Orlando, where she expects to rent a car. The tax imposed on gasoline and airline travel is called what?

excise tax

What are on the sale of tobacco, gasoline, and alcohol called?

excise tax

What is a specified amount that you can subtract from your income for each person you support before calculating your taxes?

exemption

What is the amount you earn before taxes are withheld?

gross income

If less income is withheld from your pay than is indicated that you owe on the tax table, then what do you with additional taxes?

owe

Last year when Robert's taxable income was $24,000, he paid $1,800 in federal income tax. Robert's neighbor Ronda had a taxable income of $33,000 and paid $3,300 in federal income tax. According to these data, the federal income tax was what last year?

progressive

Kimberly and Ian own a home and as a result pay property taxes. Their son, Noah, recently moved into a two-bedroom apartment with his cousin, Kyle. Each month they pay $625 in rent but no apparent property tax. What is the type of tax Noah's landlord includes in the rent to cover the appartments property tax?

property tax

Thalia recently purchased a hhome. Prior to finalizing the deal, her city government appraised the value of the home and determined the tax she will pay. This tax will be used by local goovernments and school districts. WEhjat is this tax known as?

property tax

Roads, schools, national defense, and the servoices of regulatory agencies are considered to be what?

public goods

If more tax is withheld from your pay than is indicated that you owe on the tax schedule, then what are you owed?

refund

Deanna and Ross both own cars and buy $20 worth of gasoline each week. Deanna earns almost twice as much as Ross. Therefore, the share of her income that she pays for gasoline tax is smaller than the share Ross pays of his. What does the data on the gasoline show?

regressive

Nancy enjoys shopping at her local superstore and often goes there on Saturday to purchase her groceries, children's school supplies, shoes, film, and clothing. What is the type of tax that is added at the checkout to the price of many of the goods she purchases called?

sales tax

Huong has been saving money for a down payment for a new car. She has looked at several different makes and models. She finally located the "car of her dreams" It turns out her dream car is foreign made and quite expensive because it was taxed when it was imported into the U.S. Whatr type of tax is this called?

tariff

What is used to control the flow of products that are imported into the United states? Thhis has been imposed on these products

tariffs

What is a set of forms that taxpayers use to calculate their tax obligation?

tax return

Neil works as a waiter and receives $150 a week in gross income. He earns approximately another $100 a week in tips. His combined pre-tax income is, therefore, $13,000. After exemptions and deductions the fiigure he uses to calculate his taxes is $5,550 . What is this figure known as?

taxable income