Question: Which describes a type of tax that funds city programs?

progressive tax

federal income tax

local income tax

medicare tax

Answer: Local income tax

Question: If Massachusetts has a sales tax of 6 percent and New Hampshire has no sales tax, how much money can be saved by buying a $1,000 television in New Hampshire?

$6

$16

$60

$600

Answer: $60

Question:

Answer: The most revenue comes from individual and payroll taxes.

Question: The document shows a personal allowances worksheet.

The document asks about dependents because the number can:

affect who pays taxes.

increase overall taxes.

lower overall taxes.

affect when to pay taxes.

Answer: Lower overall taxes.

Question: Sales tax is calculated:

based on the number of items purchased.

using a percentage of the price of an item.

before a sale discount is applied.

as a percentage based on federal law.

Answer: Using a percentage of the price of an item.

Question: The document shows a 1040 form.

The 1040 form is used to collect:

state tax.

local tax.

federal tax.

sales tax.

Answer: Federal tax.

Question: Sales tax is calculated by multiplying the price of an item by the ___ ____.

Answer: Tax rate

Question: The chart shows a sample paycheck stub.

The chart shows that federal and state taxes are:

added to employee pay.

withheld from employee pay.

refunded in employee pay.

filed through employee pay.

Answer: Withheld from employee pay.

Question:

Answer: It helps determine the amount of taxes withheld from an individual’s paycheck.

Question: What types of information does a W-2 form contain? Check all that apply.

how much has been earned

how much sales tax has been paid

how much has been withheld for taxes

how much property tax has been paid

how much additional tax is due

how much withheld tax will be refunded

Answer: How much has been earned

How much has been withheld for taxes