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Unit 5 quiz Personal and Family Finance

Terms in this set (15)

Any alimony income must be included in gross income.
Ava is having trouble calculating her gross income. What tip would be MOST helpful as she sorts through her financial records to try to figure out what to include in her calculations?
excise
Huda wants to buy soda. A 12-pack costs $9.50. She knows that with the local sales tax of $2.00, the total should be $11.50. However, when she gets to the checkout, the total is now $13.00. Which type of tax is Huda MOST likely paying that would explain the extra $1.50?
an adjusted gross income
Whitney made $45,000 at her job last year. This was her gross income. She then subtracted her deductions and her new total came to $41,435. What does this new total represent?
Child support is not included in gross income calculations.
Marisa has gathered a pile of financial documents from the past year showing money she has taken in. She received money from alimony, child support, investment income, and unemployment compensation. She totals it all up to try to determine her gross income, but you know that she is making a mistake. What would you tell Marisa so she can correct her total?
an itemized deduction
Because the Patel family bought a home this year, they are allowed to claim this expense on their tax return. By doing this, their taxable income should be lowered, thus requiring them to pay less taxes. What does this claim BEST demonstrate?
tax audit
Amanda submitted her taxes, but someone from the IRS called her because they want to talk more about her tax return. What is Amanda MOST likely experiencing?
sales
Trevor bought a new pair of jeans, and the price was listed as $50. When he paid for the jeans, the total price was $53.50. The extra $3.50 was for tax. Which type of tax was Trevor most likely paying?
single
Jane is not married and has no children. She is 35 and owns her own home. Under which status is she most likely to file?
They will receive a 1099 form to tell them what they have earned (and paid) on investments.
Khalid and Miriam have made a lot of money from investments this past year, but they aren't sure how much they have already paid in taxes on these investments. They are wondering if the government has kept records for them in any way. What information would you share to help them be more informed?
Prepare his taxes with using an electronic tax program.
Bill wants to prepare his own taxes but wants a bit more guidance. He wants to file taxes without having to spend much money. What is his BEST option for filing taxes?
People are sorted into different tax brackets.
How does the United States implement its progressive tax system?
Raymond will have to pay inheritance tax.
Raymond's grandfather recently passed away. He left Raymond $1,000,000 in his will. Raymond's lawyer tells him not to spend all $1,000,000 because he will owe some of it to the government. Why is this MOST likely true?
Hire someone to prepare her taxes.
Cynthia has had a very complicated financial year. She worries that her tax return will be extremely complicated this year as well. She thinks she will have numerous random deductions and credits that she fears she might miss. What is her BEST option for filing taxes?
real estate property
Daniel and Melissa just bought a new house for $200,000. Each quarter, they now have to pay $4,000 in taxes. Which type of tax are they MOST likely paying because of this purchase?
income
Which type of tax are Social Security tax and Medicare tax considered to be?
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