Tax Basics Answers

Stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax. She made arrangements to have 19% of federal income tax withheld for state income tax. On her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. Which of the following statements is true?

Many communities today are concerned with their local government’s ability to appropriately manage the taxes it collects. If a government spends more money on expenditures than it collects in taxes, it may end up with not enough money, called deficit. Which of the following could result in a county government budget in deficit?

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?

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?

Curtis just received 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 statements best describes the effect his raise will have on state income tax withholdings?

According to the chart below, what percentage of Ralph’s expenses are items other than taxes?

According to the graph below, what percent of the Simpsons’ annual expenses is Federal taxes?

Ralph’s current annual income is $32,000. Using the graph shown below, Ralph has calculated that he will have to pay a total of $9,280 in federal taxes this year. Which of the following statements is true?

Which of the following is considered a purchase tax?

For which of the following would not expect to pay an excise tax?

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?

Which of the following is an example of a wealth tax?

Which of the following statements best describes the difference between sales tax and property tax?

What kind of taxes are likely to pay for universities and police?

Social Security and Personal Income tax are called Payroll taxes because _____.