Name:
Date:
Unit 5
Paying Taxes
VOCABULARY CHECK
Directions: Fill in the blank with the correct answer. Please Highlight your answers.
1. Gera’s (?) was less than what she expected because of all the taxes that were taken out.
2. Matthew had to pay (?) on the car he purchased.
3. Money collected by the government for the purpose of operating the government is called a
(?).
4. If Robin multiplied her hourly wage by the number of hours she worked, she would be able to
figure her (?).
5. Bobby’s employer was required to withhold (?) on all the employees at the pizza parlor
and pay that amount to the government every quarter.
6. To find out more about paying taxes, Horace went to the (?) Web site.
7. Amanda had to file a (?) before April 15 on her earnings from her job at the gym.
8. Colin found out that FICA was money withheld and sent to the government that funded (?)
and (?) for retirees.
9. The taxes imposed on Milad’s earnings reflect his (?).
.
10. The first step for Amanda to calculate how much federal tax she owes was to determine her
(?). This would be her income from almost any source, especially her job at the
gym.
11. Dillon’s dad sold stock and had to report the (?) on his tax return.
12. Amanda needed to calculate her (?) and (?) for her tax return to determine which method
would give her the smallest tax liability.
13. Robin’s mother reminded her that her (?) would not be the same as her gross pay because
taxes would be taken out.
14. Amanda’s (?) was figured after she subtracted her allowable amounts, such as moving
expenses and student loan interest paid, from her total income.
(1)Adjusted gross income; (2)Capital gain; (3)Gross income; (4)Gross pay; (5)Internal
Revenue Service; (6)Itemized deduction; (7)Medicare; (8)Net pay; (9)Payroll tax;
(10)Personal income; (11)Sales tax; (12)Social Security; (13)Standard deduction; (14)Takehome pay; (15)Tax; (16)Tax return
UNIT 5
Paying Taxes
CHECK YOUR KNOWLEDGE
Multiple Choice Questions Highlight the correct answer for each of the following.
1. Money collected from individuals and corporations by some branch of the government is
known as (a) __________.
a. tax
b. net pay
c. gross pay
d. fundage
2. A synonym for take-home pay is __________.
a. gross pay
b. tax
c. FICA
d. net pay
3. Payroll taxes can include all of the following except __________.
a. state income tax
b. sales tax
c. federal income tax
d. FICA
4. The federal tax system is carried out by the __________.
a. Internal Revenue Service
b. Federal Deposit Insurance Corporation
c. Federal Taxation Office
d. U.S. Treasury
5. By law federal tax returns must be filed by what date?
a. January 1
b. December 31
c. May 2
d. April 15
6. A(n) __________ formally reports your tax information to the federal government.
a. confirmation letter
b. tax return
c. payroll stub
d. income report
7. Which of the following is not a possible filing status used when filing your federal
income tax return?
a. single
b. head of household
c. siblings filing jointly
d. married filing separate return
8. For tax purposes, if you sell an asset for more than you paid for it, you will have what is
called a(n) __________.
a. capital gain
b. tax deduction
c. tax credit
d. capital loss
9. Gross income includes all of the following except __________.
a. tips
b. child support payments received
c. wages
d. game show winnings
10. Taxes impact all of the following financial decisions except __________.
a. whether to rent or buy
b. where to live
c. investment options
d. the type of clothing to wear