Financial Literacy: Tax Basics Exam Questions & Answers.
Oscar has elected to have 23% of his federal income tax withheld as state income tax. If $154.00 was withheld as federal income tax on his last paycheck, how much will be withheld from his paycheck for income tax in all?
a.
$35.42
b.
...
Financial Literacy: Tax Basics Exam
Questions & Answers.
Oscar has elected to have 23% of his federal income tax withheld as state income tax. If $154.00 was
withheld as federal income tax on his last paycheck, how much will be withheld from his paycheck for
income tax in all?
a.
$35.42
b.
$118.58
c.
$177.00
d.
$189.42 - CORRECT ANSWER d.
$189.42
Stacy thinks her employer may not be withholding the correct amount from her paychecks for state
income tax. She made arrangements to have 19% of federal income tax withheld for state income tax.
On her last paycheck, the federal withholding was $163.88 and her state income tax withholding was
$24.58. Which of the following statements is true?
a.
Stacy's employer is withholding the correct amount for state income tax.
b.
Stacy's employer is withholding too little for state income tax.
c.
Stacy's employer is withholding too much for state income tax.
d.
Stacy's employer should not be withholding state income tax. - CORRECT ANSWER b.
Stacy's employer is withholding too little for state income tax.
, Curtis just recieved a raise at work increasing his salary by $8,500. He knows that an increase in salary
will increase the amount of federal income taxes withheld from his paycheck. Which of the following
statement best describes the effect his raise will have on state income tax withholdings?
a.
State income tax is unrelated to federal, he will see no change in his state withholding.
b.
Since he is having more withheld for federal, he will have less withheld for state so that he pays the
same amount in the end.
c.
State income tax is usually a set percentage of federal income tax. With an increase in federal he will see
an increase in state withholding.
d.
Since he is making more money, the state government will take advantage of his raise and charge him
more income tax. His state withholding will increase. - CORRECT ANSWER c.
State income tax is usually a set percentage of federal income tax. With an increase in federal he will see
an increase in state withholding.
According to the chart below, what percentage of Ralph's expenses are items other than taxes?
a.
65%
b.
71%
c.
75%
d.
94% - CORRECT ANSWER a.
65%
Which of the following is an example of a wealth tax?
a.
income tax
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