Questions and Answers
Which describes a type of tax that funds city programs?
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?
What does the diagram of federal income tax revenue show?
Why does the personal allowances worksheet ask about dependents?
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Sales tax is calculated:
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The 1040 form is used to collect:
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Sales tax is calculated by multiplying the price of an item by the ___ ____.
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The chart shows that federal and state taxes are:
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Which best summarizes the purpose of a W-4 form?
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What types of information does a W-2 form contain? (Check all that apply)
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Which explains a difference between income and taxable income?
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If a new shirt costs $34.99 and the sales tax is $2.10, the sales tax rate is:
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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?
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Which best describes the purpose of a W-2 form?
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In addition to federal income tax, many people also pay:
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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.
