Taxes- Consumer Management

The government gets most of its money from...

income tax

Taxes fund private schools

False

Tax day is

April 15th

IL State income tax is

proportional

Federal income tax is

progressive

progressive tax

A tax for which the percentage of income paid in taxes increases as income increases

proportional tax

A tax in which the average tax rate is the same at all income levels.

Groceries are taxed less than clothes

true

Tax calculated by the local government and dependent on house / location value

Property tax

The form you fill out when you start a job

W4

The form you receive at the start of the year that summarizes how much you made in total and paid in taxes

W2

Your pay before any deductions or taxes:

gross income

FICA taxes

Based on the Federal Insurance Contributions Act; tax withheld from employees' paychecks for Social Security and Medicare.

Voluntary Compliance

all citizens are expected to prepare and file tax returns of their own accord without force

tax avoidance

the use of legitimate methods to reduce one's taxes

tax evasion

willful failure to pay taxes

1099 INT

reports interest earned in a given year

1099-DIV

Dividends earned on investments during the previous year.

The purpose of a W4 is..?

To estimate how much tax to withhold from your check throughout the year

Why might getting a huge tax refund be bad?

Opportunity Cost- You could have been using/investing that money throughout the year

What steps should someone who is single, young, works one job, and plans to take the standard deduction fil out on their w4?

Steps 1 and 5

What is the IL state tax rate?

4.95%

When are you legally entitled to time and a half

you are paid hourly AND work over 40 hours in a week