1. Chapter 26 Test Review

2. Test
Multiple Choice, T/F, Matching
(2) 1040 forms

3. Question 1 What is Adjusted Gross Income?
 your after-tax income
 your taxable income after deductions
 your taxable income before deductions
C. your taxable income before deductions

4. Question 2
Which form tells your employer all they need to know about your tax-related allowance information?
 W-2
 W-4
 W-10
W-4

5. Question 3
The process by which the expenses of government are paid is called………..
TAXATION

6. Question 4
A _____is a required contribution of money people make to government.
tAX

7. Question 5
The main purpose of taxation is to raise….
revenue

8. Question 6
A tax for which the same rate applies regardless of income
FLAT

9. Question 7
A type of tax commonly paid on such items as gasoline and tires
EXCISE

10. Question 8 What is the deadline for filing tax forms? April 1 April 15
April 15 equals doomsday for many Americans. Don’t fret! You may get an extra day or two if the 15th falls on the weekend.

11. Tax paid on items purchased. Tax paid on salary, wages, and tips.
Income tax
Payroll tax
Sales tax
Excise tax
Estate tax
Inheritance tax
Gift tax
Tax paid on items purchased.
Sales
Tax paid on salary, wages, and tips.
Income
Tax paid by both employee and employer.
Tax paid on such items as tires and gasoline.
Excise

12. Tax taken out of each person’s share of the will.
Income tax
Payroll tax
Sales tax
Excise tax
Estate tax
Inheritance tax
Gift tax
Tax taken out of each person’s share of the will.
Inheritance
Tax paid to support Social Security.
Payroll
Tax paid on money or property given by others.
gift
Tax paid by businesses on their profits.
Income
Tax paid on the value of a deceased person’s property.
Estate

13. Other…. Are Taxes Compulsory or optional?
Are income taxes a Direct or Indirect tax?
Direct more on direct
Does every individual have to pay income taxes? no
Does every corporation have to pay income taxes?

14. Is the federal income tax graduated or flat?
What is 1 reason someone would not be able to use the 1040 form ONLY?

15. Direct Taxes are the taxes that are levied on the income of individuals or organizations. (Income tax, corporate tax, inheritance tax are some instances of direct taxation.)
Indirect taxes are those paid by consumers when they buy goods and services.