Podcast
Questions and Answers
Which describes a type of tax that funds city programs?
Which describes a type of tax that funds city programs?
- Local income tax (correct)
- Medicare tax
- Progressive tax
- Federal income tax
If Massachusetts has a sales tax of 6 percent and New Hampshire has no sales tax, how much money can be saved by buying a $1,000 television in New Hampshire?
If Massachusetts has a sales tax of 6 percent and New Hampshire has no sales tax, how much money can be saved by buying a $1,000 television in New Hampshire?
- $60 (correct)
- $600
- $16
- $6
What does the diagram of federal income tax revenue show?
What does the diagram of federal income tax revenue show?
- The most revenue comes from payroll and corporate taxes.
- The least revenue comes from payroll and other taxes.
- The least revenue comes from individual and corporate taxes.
- The most revenue comes from individual and payroll taxes. (correct)
Why does the personal allowances worksheet ask about dependents?
Why does the personal allowances worksheet ask about dependents?
Sales tax is calculated:
Sales tax is calculated:
The 1040 form is used to collect:
The 1040 form is used to collect:
Sales tax is calculated by multiplying the price of an item by the ___ ____.
Sales tax is calculated by multiplying the price of an item by the ___ ____.
The chart shows that federal and state taxes are:
The chart shows that federal and state taxes are:
Which best summarizes the purpose of a W-4 form?
Which best summarizes the purpose of a W-4 form?
What types of information does a W-2 form contain? (Check all that apply)
What types of information does a W-2 form contain? (Check all that apply)
Which explains a difference between income and taxable income?
Which explains a difference between income and taxable income?
If a new shirt costs $34.99 and the sales tax is $2.10, the sales tax rate is:
If a new shirt costs $34.99 and the sales tax is $2.10, the sales tax rate is:
If a home is valued at $250,000 and the property tax rate is 2 percent, how much will the owners pay in property taxes?
If a home is valued at $250,000 and the property tax rate is 2 percent, how much will the owners pay in property taxes?
Which best describes the purpose of a W-2 form?
Which best describes the purpose of a W-2 form?
In addition to federal income tax, many people also pay:
In addition to federal income tax, many people also pay:
Study Notes
Types of Taxes
- Local income tax funds city programs.
- Federal tax is collected using the 1040 form.
- Sales tax is calculated based on a percentage of item price.
Tax Savings
- Buying a $1,000 television in New Hampshire saves $60 due to no sales tax compared to Massachusetts' 6% sales tax.
Revenue Sources
- Most federal tax revenue comes from individual and payroll taxes, while corporate taxes contribute less.
Tax Benefits from Dependents
- Reporting dependents on personal allowances can lower overall taxes.
Paycheck Deductions
- Federal and state taxes are withheld from employee pay, impacting net income.
W-4 and W-2 Forms
- A W-4 form helps determine tax withholding from paychecks.
- A W-2 form displays total earnings and taxes withheld during the year.
Taxable Income Calculation
- Taxable income is derived from gross income minus deductions for expenses.
Sales Tax Calculation
- Sales tax is calculated as a percentage of the item price, demonstrated through examples like the related shirt purchase.
Property Tax Example
- Owners of a $250,000 home at a 2% property tax rate pay $5,000 in taxes.
Additional Tax Obligations
- Alongside federal income tax, individuals often pay state income tax.
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Description
This quiz covers various types of taxes, including local, federal, and sales tax, and how they impact individual finances. Learn about tax forms like W-4 and W-2, and explore the benefits of reporting dependents. Test your knowledge on calculating taxable income and understanding paycheck deductions.
