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The chart shows taxable income.

Question illustration
A
Income is what a person earns, while taxable income reflects deductions subtracted for relevant expenses.
B
Income is what a person earns, while taxable income reflects what is left after paying federal taxes.
C
Income is what a person earns, while taxable income reflects what is left after paying local and state taxes.
D
Income is what a person earns, while taxable income reflects what is received from the IRS in a tax refund.
4

Which describes a type of tax that funds city programs?

A
progressive tax
B
federal income tax
C
local income tax
D
medicare tax
5

withholding amountincome taxtax rate

A
withholding amount
B
income tax
C
tax rate
6

The document shows a personal allowances worksheet.

Question illustration
A
affect who pays taxes.
B
increase overall taxes.
C
lower overall taxes.
D
affect when to pay taxes.
8

Read the scenario.Jamal is passionate about education and believes that everyone should have access to quality learning opportunities. He decides to donate to a local nonprofit organization that provides scholarships to underprivileged students. During tax season, Jamal finds out that his charitable donations impacts his taxes.How does Jamal's charitable donation to the nonprofit organization impact his taxes?

A
The donation reduces Jamal's taxable income, lowering the total amount of owed taxes.
B
The donation does not affect Jamal's taxes at all, as it is not a tax-deductible contribution.
C
The donation increases Jamal's tax refund, as the organization provides him with a tax credit.
D
The donation results in Jamal owing more in taxes, as it is considered additional income.
10

The chart shows a sample paycheck stub.

Question illustration
A
added to employee pay.
B
withheld from employee pay.
C
refunded in employee pay.
D
filed through employee pay.

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