Tax Basics – Flashcards

If a taxpayer does not have enough taxes withdrawn from her paychecks throughout the year to equal the total tax she is required to pay that year, she will owe the government the remaining balance. On the other hand, if the taxpayer has more money withheld for taxes than she is required to pay that year, she will receive a refund for the difference. Mary has determined that, based on her annual income of $36,000, her federal income tax for the year is $5,424. Mary gets paid on a bi-weekly basis, giving her 26 paychecks throughout the 52 week year. What is the minimum amount Mary must have withheld from each of her 26 bi-weekly paychecks in order to avoid owing the federal government at the end of the year?

Which of the following is considered a purchase tax?

What is the defining feature of a progressive tax?

Based on his salary, Kevin knows that he will have $336.00 withheld from his paycheck for federal income tax. He would like to have approximately $70.00 withheld for state income tax. Which of the following withholding options should he choose for state income tax?

The chart below summarizes Ralph's annual expenses for the upcoming year. Based on the information in the graph, approximately what percent of his total budget will be for federal taxes?

Which of the following is an example of a wealth tax?

According to the chart below, what percentage of Ralph's expenses are items other than taxes?

Below is a graph of the Murphys' annual expenses. How much will the Murphys' pay in state/local taxes if their gross annual household income is $85,420?

For which of the following would not expect to pay an excise tax?

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?

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?

Ralph's current annual income is $32,000. Using the graph shown below, Ralph has calculated that he will have to pay a total of $9,280 in federal taxes this year. Which of the following statements is true?

Which of the following statements best describes the difference between sales tax and property tax?

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?

Social Security and Personal Income tax are called Payroll taxes because _____.

Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government spends more money on expenditures than it collects in taxes, it may end up with not enough money, called deficit. Which of the following could result in a county government budget in deficit?

Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____.

According to the graph below, what percent of the Simpsons' annual expenses is Federal taxes?