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