Terms in this set (20)
Mauro just won $1,000,000 from the lottery! Despite his excitement in winning a tremendous amount of money, his brother (who is an accountant) warns him not to spend it all at once and hands him this tax rate schedule for single taxpayers.
Before winning the lottery, Mauro's annual income was $34,500. Use the chart to determine Mauro's federal tax before winning the lottery and after winning the lottery.
How much extra does he have to pay in federal taxes because he won the lottery?
According the the chart below, what percentage of the Simpsons' annual expenses is taxes?
Ralph's annual income is about $32,000. Based on his expenses illustrated in the graph below, roughly how much should Ralph expect to pay in taxes this year?
The Murphys' gross annual family income is $120,500. Mr. Murphy referred to the graph shown below and calculated that his family will spend $28,920 on taxes this year. What is wrong with Mr. Murphy's calculation?
He has calculated only federal taxes.
Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government doesn't use all of the tax money it collects in taxes on existing expenditures, it may end up with extra money, called surplus. Which of the following could result in a county government budget in surplus?
The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.
Ralph's annual expenses for the upcoming year are summarized in the chart below. Based on the information in the graph, approximately what percent of his total annual income is Ralph having withheld for taxes?
Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income stax while $122.25 was withheld for federal income tax. She knows that she indicated on her employment paperwork to set her state withholding at 21% of the federal withholding. What should Rhonda be thinking?
The state withholding is too high, too much is being withheld.
Below is a graph of the Murphys' annual expenses. If the Murphys' gross annual household income is $85,420, how much will they pay in federal taxes?
Which of the following statements best describes the relationship between federal and state income taxes?
Federal income tax is based on your annual income while state income tax is generally a specific percentage of federal.
According to the graph below, what percent of the Simpsons' annual expenses is state taxes?
Which of the following statements best describes the difference between sales tax and property tax?
Sales tax is applied to items as they are purchased while property tax is applied to items already owned.
Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____.
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?
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?
21% of federal income tax
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?
State income tax is usually a set percentage of federal income tax. With an increase in federal he will see an increase in state withholding.
According to the chart below, what percentage of Ralph's expenses are items other than taxes?
What kind of taxes are likely to pay for universities and police?
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?
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?
For which of the following would not expect to pay an excise tax?
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