EPF Taxes Test - Andrew Grotsky | Library

1

Which of the following is an example of a dependent?

a grandparent who receives a pension and social security

an 8 year old child who attends school

a spouse who works full time

a sister who lived in your guest room for a few weeks while on vacation

1

Taxes for which the rate changes based on income.

Progressive tax

Proportional tax

Excise tax

Regressive tax

1

The total amount of money earned in a given year before anything is taken out is called what?

Gross income

Adjusted gross income

Net Income

Deductions

1

This is a commonly accepted principle of tax fairness that states that individuals with high incomes should pay more taxes than people with low incomes.

Dividend Income Distribution

Ability to Pay Principle

Voluntary Compliance

Congressional Taxation Authority

1

Sales tax on fast food is at a rate of 5%. What type of tax is this?

Progressive Tax

Regressive Tax

Proportional Tax

Finalized Tax

1

In the US it is possible that you will be asked to pay 32% of your income in taxes while your friend only has to pay 22% of their income

True

False

1

A stated amount that you may subtract from adjusted gross income instead of itemizing your deductions

Standard Deduction

Dependent Deduction

Itemized Deduction

Normal Deduction

1

An IRS audit can be triggered by all of the following EXCEPT...

If you file your taxes at the last second on April 15th.

Key information on certain forms does not match properly.

A business partner or investor is audited and found to have acted improperly.

You can be chosen arbitrarily based on a statistical formula.

1

A flat tax where everyone is charged the same percentage of their income.

Regressive Tax

Proportional Tax

Excise Tax

Progressive Tax

2

Failure to pay your taxes on time and correctly can result in which punishment? (SELECT ALL THAT APPLY)

fines

a phone call to your parents

imprisonment

capital punishment

1

Taxes must be filed every year by April 1

True

False

1

The amount you have to pay in income tax is based on

Adjusted gross income

Gross income

Net income

Adjusted Net Income

1

A tax on specific goods such as gas, hotels, utilities, alcohol, etc

Regressive Tax

Progressive Tax

Proportional Tax

Excise Tax

1

What does IRS stand for?

Interest Revenue Service

International Revenue Service

Internal Revenue Serive

5

Match the IRS form to its definition

Draggable item		Corresponding Item
This form comes from your employer and outlines your gross pay, net pay, and all taxes or other deductions taken out each pay period.		W-2
		W-4

1

Federal income taxes are taxed at a rate of 25% for someone making $50,000 and 35% for someone making $400,000. What type of tax is this?

Proportional Tax

Progressive Tax

Regressive Tax

Excise Tax

2

Match the term to its definition

Draggable item		Corresponding Item
Exemptions		Individual expenses the law allows you to subtract from your total gross income at the end of the year to determine the amount that you will pay taxes on when filing your taxes.
Deductions		Selected when you start a job to determine how much tax money will be taken out of your paycheck each pay period.

1

Suppose you got really caught up watching cute kitten videos on YouTube and never filed your taxes last year. This would be called what?

Tax Expemption

Tax Litigation

Tax Excuse

Tax Evasion

1

The DC area has a toll for the express lanes on the beltway. This is an example of

regressive tax

proportional tax

progressive tax

driving tax

1

A person who lives with you and receives more than half of his/her living expenses from you.

dependent

deduction

exemption

liability

1

Which is the largest source of federal government revenue?

Property Tax

Sales Tax

"Sin" Tax

Income Tax

1

Waiters and waitress must claim tips on the job so it is included in their W-2 and is taxable income.

True

False

1

If you made $7,000 in 2021, you dont have to file taxes

True

False

4

Some of the items Federal revenue may be spent on are: (SELECT ALL THAT APPLY)

1

The IRS is in charge of creating new tax laws

True

False

1

The following are all an example of a tax filing status EXCEPT:

single

married fining jointly

single filing separatly

married filing separatly 

4

Some possible tax deductions include: (SELECT ALL THAT APPLY)

1

Some individuals dont HAVE to file taxes, but it could be to their benefit to file them anyway

True

False

1

Types of taxes include all of the following EXCEPT

1

A check from your grandma for you birthday is an example of

earned income

unearned income

1

The IRS enforces tax laws

True

False

3

State and local tax revenue could be spent on the following (SELECT ALL THAT APPLY)

1

Tax brackets are

Levels of income used to determine the percentage of taxes you pay

something to do with March Madness

Used to separate areas of the country who have to pay different amount of taxes

Draggable item		Corresponding Item
This form comes from your employer and outlines your gross pay, net pay, and all taxes or other deductions taken out each pay period.		W-2
Your employer is legally obligated to send you this tax document which summarizes the wages you earned and the taxes you paid by January 31st each year.		W-4
This document is provided to you from any entity you may have received money from other than your employer. It states the money you received so that you can report it on your taxes.		1040
A form you fill out when starting a job that helps determine the amount of taxes taken out of your paychecks.		1099
This is the form used to file taxes and determines whether you will receive a refund or have to pay the government additional taxes for a given year.		paystub