personal finance week 10 chapter 3

approximately how much does the budget shown by the bar graph above allocate to agriculture for FY 2019?

$50 billion

using the above example of a W-4 tax form for the internal revenue service (IRS), answer the following questions. 1. what is the purpose of the W-4 form? 2. what withholding status did this person choose? 3. how many total allowances did this person list? (Line H) 4. how many allowances did this person choose to claim on this form? (Line 5) 5. do the number of allowances a person claims on the W-4 form have to match the number of exceptions that are claimed on their 1040 tax return form?

1. it is for your employer, so that they can withhold the correct income tax from your salary. 2. married, but withhold at a higher single rate 3. 4 4. 2 5. no, this is simply information your employer needs for withholding purposes

which of the following deductions that the employee has voluntarily signed up to have deducted? choose all that apply.

401K and other retirement/investment plans health insurance stock plan union or organizational dues life insurance

tax credit

a dollar-for-dollar reduction in your actual tax bill

estate tax

a federal tax on inheritance

W-2 form

a form that shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes

income tax

a government tax based on a person's personal income

social security tax

a government tax used to help fund retirement benefits and disability payments

inheritance tax

a state tax on inheritance

proverbs 22:7 says the ______ is a slave to the _________.

borrower lender

what date indicates the end of the tax year?

december 31

to determine net pay, you subtract _______ from _________.

deductions gross pay

you are not required by law to pay taxes.

false

________ wages are the amount you are paid for your work before any taxes or benefits are taken out of your paycheck. you will not receive this amount in your bank account.

gross

based on the pie charts of federal tax revenue collections pictured above, what is the largest category that is collected?

individual income tax and tax withholdings

when should you receive your W-2 form from your employer?

january 31st

a tax deduction is a dollar amount that the IRS allows you to subtract from your adjusted gross income, or AGI, making your taxable income ____________.

lower

paying taxes is a biblical principle. in what book of the bible does jesus tell us to render to caesar what is caesar's?

matthew

_______ pay is the amount of money you are actually get to take home, otherwise known as "take-home pay."

net

overtime pay

pay received by a person for work done past their required schedule (usually paid at a higher rate)

regular earnings

pay received for a person's regularly scheduled hours

what are some types of taxes that you may pay in your lifetime? choose all that are correct.

sales taxes medicare taxes property taxes social security taxes income taxes

all of the following people should receive W-2 forms EXCEPT:

serena, who is a freelance wedding photographer

what are some items that the federal government uses citizen tax money to pay for? (choose all that apply.)

social security medicare roads defense

what tax deductions are considered statutory (those mandated by law)?

state medicare federal social security

as a citizen of the united states, you are required to pay ___________.

taxes

what two sections make up the "owe" portion of the pie diagram?

taxes debt

YTD (year to date)

totals for earnings and deductions for the year

based on the bar graph above that shows spending by the federal government, what are the top four categories that require the highest amount of money from the budget?

treasury health and human services defense military programs social security administration

an inheritance tax is a state tax

true

social security taxes, also known as the "federal insurance contributions act" tax, provide benefits for retired workers and their dependents and for disabled workers and their dependents.

true

choose the tax revenue categories that are allocated less than 5% of the budget.

unemployment taxes customs taxes excise taxes

what is the portion of an employee's wages that is not included in their paycheck because it goes directly to federal, state, and local taxes?

withholding