Topic Test Answers

On your property tax bill, you see the following table.DestinationShare of Your TaxesRoads$241Schools$896Public Safety$154Township$177What percentage of your taxes went to funding public safety?

Which of these can be listed as benefits of filing your tax return online?I. Allows you to claim a larger number of deductionsII. Allows for faster receipt of any refunds dueIII. Allows for greater accuracy when filing

Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____.

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.

Which of the following is considered a purchase tax?

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.

Which of the following is a benefit Social Security does not offer?

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

Who should fill out the W-2 form?

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?

Adam makes $632 gross income per week and has claimed four allowances. According to the table below, what is Adam’s net income after tax withholding?

Tina lives in a state that charges her 4.5% state income tax on her federal taxable income. If her federal taxable income is $61,600, how much does Tina pay in state income tax?

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

If a 6.2% Social Security tax is applied to a maximum wage of $106,800, the maximum amount of Social Security tax that could ever be charged in a single year is:

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

Arthur’s yearly taxable income totals $116,600, and he pays $30,910.66 in federal income tax every year. Approximately what is Arthur’s net federal income tax rate?

Robert and Anne, a married couple filing jointly, have an adjusted gross income of $68,676. They claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. If the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income?

Kathy makes $66,000 per year, and she pays a net federal income tax rate of 18.85%. How much should Kathy expect to pay in taxes every year?

Consider Michelle and Gladys, two neighbors who each earn the same salary. Gladys pays less in federal income taxes than Michelle does. Which of the following is a possible explanation for this?