Exam (elaborations)
Personal Finance - Unit 1. Taxes Questions and Answers Fully Solved
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Personal Finance - Unit 1. Taxes
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Personal Finance - Unit 1. TaxesWhy do we pay taxes? - answer They pay for public services and government spending
that help run our country.
What is the term for:
"Money collected by the government to finance public expenses" - answer taxes
What is the term for:
"Paid by employees to federal and state government. Collected or withheld from one's
paycheck." - answer Income Tax
What is the term for:
"Federal and state taxes that all employers must pay, based on percentage of the
employee's salary, They go to such things as Social Security and Medicare/Medicaid" -
answer Payroll Taxes
What is the term for:
"A percentage of profits paid by a business to the federal and state government" -
answer Corporate Income Tax
What is the term for:
"A tax paid on purchases of a specific good, like gasoline" - answer Excise Tax
What is the term for:
"A tax on property (cash, real estate, stock, or other assets) transferred from deceased
personas to their heirs" - answer Estate Tax
____% of federal spending goes to THREE THINGS:
1:
2:
3: - answer66%
1) Social Security
2) Medicare/Medicaid/etc...
3)Defense
What does FICA stand for?
What percent of these taxes go to:
Social Security -
Medicare - - answerFederal Insurance Contribution Act
6.2%
1.45%
, Who must file a Tax Return:
If you are d________, under the age of ___, and s_____, you must pay taxes if:
- you earned more than $_______
- you receive an ________ income that is more than $_____
- your income was more than the larger of $1,050 or earned income up to $11,850 plus
$_____
______________________________________________________________________
If you are NOT a d________, under the age of ____, and s_____, you must pay taxes
if:
- you earn more than $______
______________________________________________________________________
_
Regardless of dependence status:
- You must pay taxes if your self-employed and earn more than $________
- Contributions to all of your traditional and Roth IRAs (individual Retirement Account)
cannot exceed your taxable compensation, with a maximum of $________ per year for
tax year 2019 - answerdependent, 65, single
$12,200
unearned, $1050
$350
______________________________________________________________________
dependent, 65, single
$12,000
______________________________________________________________________
$400
$6,000
Unless specifically excluded, all _____, ________, ___________, and _______ are
taxable.
All ___ income is taxable and needs to be reported.
_________ report wage and tax information on Form ___, Wage and Tax Statement.
_________ use this form to complete their individual tax returns. - answerwages,
salaries, commissions, and bonuses
tip
Employers, W-2
Employees
How Allowances Affect your Taxes:
Complete the following sentences:
"The more (more/fewer) withholding allowances I take, the more money I will receive in
each paycheck."
"The fewer (more/fewer) withholding allowances I take, the greater the likelihood I will
owe taxes when I file my return.
______________________________________________________________
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