personal finance chap 10

The total amount the U.S. owes to other countries and companies is called what? A. National debt B. Deficit spending C. Wealth tax D. National tax

A

Planning to spend more money than you actually have coming in is called ____ .

deficit spending

_____ is money you make from working at your job.

earned income

_____ is money you make from your investments.

portfolio income

The taxes you pay for snacks and other items at a gas station are an example of ____ .

sales tax

Due to recent tax reforms, most tax filers can just take the _____ when filing their taxes.

standard deduction

Each year, taxpayers submit a(n) _____ to the IRS with the goal of getting as close to zero as possible.

tax return

April 15 of every year—the usual deadline to file your taxes—is also called what? A. Deadline Day B. Due Day C. Tax Day D. Equinox Day

C

What percentage of their income should a self-employed person set aside for taxes? A. 15-20% B. 20-25% C. 25-30% D. 30-35%

C

What federal payroll tax goes toward Social Security and Medicare? A. FICO B. FICA C. FACO D. FOCA

B

Which form is used to calculate how much income tax is withheld from your pay? A. Form W-2 B. Form W-4 C. Form 1098 D. Form 1099

B

_________ is your total pay before taxes and withholdings are taken out. A. Net income B. Earned income C. Passive income D. Gross income

D

The IRS may conduct a(n) _____ of a person's tax return to check the accuracy of the figures.

audit

An example of a(n) ____ is the taxes you pay on the fuel you purchase for your car at a gas station.

excise tax

The 12-month period used for reporting financial activity is known as a(n) ____ .

fiscal year

If a long-lost relative or friend were to leave you a lot of money, you might have to pay a(n) ____ .

inheritance tax