Pers Fin Quiz

Earned Income

Comes from working a job and getting paid.

Unearned Income

It is getting money without having to work for it directly.

Income

Money that a person or a business receives in return for working, providing a product or service, or investing capital.

Wealth

Implies money or valuable possessions accumulated by a person during his life.

Earnings

The money you have made.

Gross Pay

The total amount you earn before deductions are subtracted.

Deductions

The amount subtracted from your gross pay.

Allowances

The amount taken out of your paycheck for taxes.

Net Pay

When all deductions are taken out of gross pay.

Employee Benefits

Offered to employees over and above what they receive as a salary

Tax

This is a required payment by a taxpayer, mandated by the government.

IRS

Internal Revenue Service are the ones who collect income taxes and enforce the tax laws.

Tax Bracket

Refers to a range of incomes subject to a certain income tax rate.

Tax Return

This is a form, or form filed, with a tax authority that reports income, expenses, and other pertinent tax information.

Filing Status

This is your tax filing group based on marital status as of the last day of the tax year.

Exemption

It is an amount you can subtract from your income for each person that is dependent on your income in your household.

Tax credit

It is the amount of money a taxpayer can subtract from the taxes they owe, which helps reduce the amount of taxes owed.

What factors can affect employment?

Supply and Demand, Geographic Location, Level of Education, Type of Industry, Union Membership, Productivity, Skill Level, Work Ethic

Listed the sources of unearned income

Birthday Money, Unemployment Benefits, Interest on Savings, Winning a Financial Prize, Allowance, Stock Dividends Paid By Corporations

List some ways you can earn an income.

Working a job, running a business, investing

What are the types of earnings?

Salary, Monthly wages, Overtime, Tips

What are optional deductions from your paycheck?

Health insurance, retirement, flexible spending, dental insurance, life insurance, eye insurance, union fees, etc.

Social Security and Medicare are examples of what

government programs that provide insurance against loss of income and benefits to eligible recipients. Also known as FICA.

What are the types of benefits and incentives?

Sick/ Personal Leave, Paid Vacation and Holidays, Retirement Plans, Medical insurance, Dental and vision coverage, Profit Sharing, Stock Options, Employee Discounts, Bonuses & Incentive Pay

What do tax revenues help finance?

Government activities, including public works and services such as Social Security, Medicare, schools, roads, and other programs.

Who does tax responsibility fall on?

Tax responsibility falls on whoever pays the burden of taxes.

How often do tax laws make you file taxes?

The tax laws require a percentage of taxpayers' earnings to be taken out and submitted to the government yearly. Failure to do so is punishable by law.

List the types of Taxes.

Progressive, Regressive, Proportional, Income Tax, Payroll Tax, Sales Tax, Property Tax, Tariff

Do you need to file federal or state tax

Every year citizens of the United States must file federal and state tax returns.

How can you file taxes ethically and legally?

To file taxes ethically and legally, you must understand all parts of a tax return, and this is filed with the IRS.

What are the options for filing status?

Single, Married Filing A Joint Return (Together), Married Filing Separate Return, Head Of Household (You can do this if you are married or single and provide a home for a dependent), Qualifying Widow(er)

Who can be dependents?

Spouses, children, elderly parents, and disabled relatives.

Do you have to report all o your gross income?

You must report all your gross income on your tax return.

What is the most common form of reporting income

a W-2 form

Should the tax rate be determined before or after deductions

Once all deductions are subtracted, the taxpayer can determine the tax rate of their adjusted gross income

What are examples of a tax credit?

Installing Solar Panels, Adopting A Child, Purchasing an Electric Car, etc.

Can you earn a tax refund. If so, how?

With proper tax preparation, it's possible to prepare yourself financially to make wise decisions and even earn a tax refund at the end of the year.