Tax Basics Answers

Which of the following is something you would not expect to see withheld from your paycheck? a.federal income taxb.state income taxc.sales taxd.Social Security

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? a.The government gives $100,000 to build and maintain a new sight-seeing attraction without adjusting existing expenditures.b.The government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures.c.The government gives financial assistance to a neighboring county without adjusting taxes.d.The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.

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? a. $3,559.17 b. $8,542.00 c. $20,500.80 d. $29,897.00 Please select the best answer from the choices provided

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? a. He has calculated only federal taxes. b. He has calculated only state taxes. c. He does not need to include federal taxes. d. He does not need to include state taxes. Please select the best answer from the choices provided

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? a. 6% b. 18% c. 30% d. 36% Please select the best answer from the choices provided

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. Taxable Income Federal Tax $0 - $7,825 10% of amount $7,825.01 - $31,850 $725.50 plus 15% of amount over $7,825 $31,850.01 - $77,100 $4,386.25 plus 25% of amount over $31,850 $77,100.01 - $160,850 $15,698.75 plus 28% of amount over $77,100 $160,850.01 - $349,700 $39,148.75 plus 33% of the amount over $160,850 $349,700.01 and up $101,469.25 plus 35% of amount over $349,700 Using this chart, a taxpayer who makes $58,000 annually (line 3) will have to pay $4,386.25 plus 25% of the difference of 58,000 and 31,850 or 4,386.25 + (0.25)(58,000-31,850) = $10,923.75. 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? a. $5,048.75 b. $336,100.50 c. $341,149.25 d. $676,260.76 Please select the best answer from the choices provided

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? a.The government gives $100,000 to build and maintain a new sight-seeing attraction without adjusting existing expenditures.b.The government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures.c.The government gives financial assistance to a neighboring county without adjusting taxes.d.The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.

According to the graph below, what percent of the Simpsons’ annual expenses is state taxes? a. 10% b. 14% c. 24% d. 34% Please select the best answer from the choices provided

According the the chart below, what percentage of the Simpsons’ annual expenses is taxes? a. 10% b. 14% c. 24% d. 34% Please select the best answer from the choices provided

Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income tax 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? a. The state withholding is correct, the correct amount is being withheld. b. The state withholding is too low, too little is being withheld. c. The state withholding is too high, too much is being withheld. d. She should not have any money withheld by the state since she is having federal taxes withheld. Please select the best answer from the choices provided