Name_______________________Date____________________Period____
Basics of Taxes Quiz
Directions: Please circle the correct letter next to the correct answer below.
1.
Which statement is TRUE about Payroll Taxes?
a. Payroll taxes are paid on both earned and unearned income.
b. Payroll taxes fund different operations and programs of the federal government.
c. Payroll taxes fund the Social Security and Medicare programs.
d. The amount of tax paid depends on many different factors but increases as income
increases.
2. As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she
discovered that she was charged 6% more than the price tag showed for the item. What is this
extra 6% charge most likely to be.
a. An excise tax on the shirt she purchased.
b. Property tax on the shirt she purchased.
c. Income tax on the shirt she purchased.
d. Sales tax on the shirt she purchased.
3. Who is Medicare designed to help?
a. Low income families
b. Single parents
c. Senior Citizens
d. Children of unemployed parents
4. Dane is researching the topic of property taxes for a presentation he is doing in his Personal
Finance class. He has come across the following statements he is considering adding to his
presentation. Which should he EXCLUDE from his presentation because it is not correct?
a. Property taxes are assessed at the same rate for all types of property, including homes,
land and building, regardless of location or whether they are used for business or
personal use.
b. Property taxes are usually charged by state and local governments to pay for local
schools and other services and expenses incurred by these governments.
c. Property taxes are commonly paid on automobiles. This tax usually paid once per year
when the automobile is licensed.
d. Property tax on homes, land and buildings are usually only paid once or twice each year.
5. Which statement is NOT TRUE about property taxes?
a. Property tax is often charged by states or local governments to pay for local schools.
b. The property tax rate is set by the federal governments to pay for local schools.
c. The fee paid to license a vehicle is an example of property tax.
d. Property taxes are most often paid only once or twice each year.
6.
Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets
are called _______________ taxes.
a. Sales
b. Excise
c. Federal Use
d. Property
Matching: Write the correct letter in FRONT of the correct term.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
_____Income tax
_____Community
_____Unearned Income
_____Taxpayer
_____Taxes
_____Sales Tax
_____Excise Tax
_____Property Tax
_____Earned Income
_____Payroll Tax
_____Taxes
a. A group of people with common interests and concern for the common good.
b. Income received from sources other than employment.
c. A tax earned on income
d. A sum of money demanded by a government to support the government itself as well as
a specific facilities or services.
e. Money earned from working for pay.
f. A person who pays a tax to national, state, county or municipal governments.
g. A tax on purchased goods and services.
h. A tax on earned and unearned income.
i. Taxes collected from the seller or retailer and as such often remain “hidden” in the price
of a product or service, rather than being listed separately.
j. A tax on property, such as land, buildings (including homes), and automobiles