POB Chapter 16 Taxes Question Preview (ID: 21886)


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A state or local tax on goods and services that is collected by the seller.
a) gift tax
b) sales tax
c) personal property tax
d) income tax

Tax based on the value of land and buildings; used to pay for schools and local government services.
a) personal property tax
b) real estate property tax
c) excise tax
d) income tax

Tax based on the value of items received from a deceased person.
a) gift tax
b) sales tax
c) estate tax
d) inheritance tax

Tax used to finance retirement and disability benefits.
a) income tax
b) sales tax
c) Social Security tax
d) Medicare tax

Filled out by the employee so that the employer will withhold the correct federal income tax from the employee’s paycheck. 
a) 1090 Form
b) W-2 Form
c) W-4 Form
d) 940 Form

Reports the amount of federal, state and other taxes withheld from the employee’s paycheck. This form is filled out by the EMPLOYER.
a) 1090 Form
b) W-2 Form
c) W-4 Form
d) 940 Form

Medicare tax is _____%
a) 14.5%
b) 1.45%
c) 6.2%
d) 4.5%

Social Security tax is ______%.
a) 14.5%
b) 1.45%
c) 6.2%
d) 4.5%

Annual income tax return filed by citizens or residents of the United States.
a) 1040 Form
b) W-2 Form
c) W-4 Form
d) 940 Form

The due date to file federal income taxes every year is _________.
a) April 1
b) April 15
c) May 1
d) May 15

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