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Paying Taxes Questions and Answers Graded A+
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Exam of 9 pages for the course taxes at taxes (Paying Taxes)
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Paying TaxesMany communities today are concerned with their local government's ability to
appropriately manage the taxes it collects. If a government spends more money on
expenditures than it collects in taxes, it may end up with not enough money, called
deficit. Which of the following could result in a county government budget in deficit? -
answer The county gives all public-school teachers a $2,000 raise without adjusting
taxes.
Ralph's current annual income is $32,000. Using the graph shown below, Ralph has
calculated that he will have to pay a total of $9,280 in federal taxes this year. Which of
the following statements is true? - answer Ralph’s calculation is correct, he will have to
pay $9,280 in federal taxes this year.
Below is a graph of the Murphys' annual expenses. How much will the Murphys' pay in
state/local taxes if their gross annual household income is $85,420? - answer$8542.00
Curtis just recieved a raise at work increasing his salary by $8,500. He knows that an
increase in salary will increase the amount of federal income taxes withheld from his
paycheck. Which of the following statement best describes the effect his raise will have
on state income tax withholdings? - answerState income tax is usually a set percentage
of federal income tax. With an increase in federal he will see an increase in state
withholding.
Oscar has elected to have 23% of his federal income tax withheld as state income tax. If
$154.00 was withheld as federal income tax on his last paycheck, how much will be
withheld from his paycheck for income tax in all? - answer$189.42
If a taxpayer does not have enough taxes withdrawn from her paychecks throughout the
year to equal the total tax she is required to pay that year, she will owe the government
the remaining balance. On the other hand, if the taxpayer has more money withheld for
taxes than she is required to pay that year, she will receive a refund for the difference.
Mary has determined that, based on her annual income of $36,000, her federal income
tax for the year is $5,424. Mary gets paid on a bi-weekly basis, giving her 26 paychecks
throughout the 52 week year.
What is the minimum amount Mary must have withheld from each of her 26 bi-weekly
paychecks in order to avoid owing the federal government at the end of the year. -
answer$208.62
, Which of the following is something you would not expect to see withheld from your
paycheck? - answersales tax
Which of the following is considered a purchase tax? - answerexcise tax
The chart below summarizes Ralph's annual expenses for the upcoming year. Based on
the information in the graph, approximately what percent of his total budget will be for
federal taxes? - answer30%
What is the defining feature of a progressive tax? - answerUnder a progressive tax,
those with more income shoulder more of the tax burden.
For each of the following wages, determine the Social Security tax that would be
withheld. Use $106,800 for maximum taxable earnings.
i. $23,660
ii. $89,000
iii. $166,090 - answeri. $1,466.92
ii. $5,518.00
iii. $6,621.60
Which of the following is a benefit Social Security does not offer? - answerautomobile
insurance
For each of the following wages, determine the Medicare tax that would be withheld.
i. $23,660
ii. $89,000
iii. $166,090 - answeri. $343.07
ii. $1,290.50
iii. $2,408.31
Which of the following statements explains the relationship between Social Security and
Medicare taxes? - answerSocial Security is applied to all wages up to the maximum
taxable earnings. Medicare is applied to all wages without limit.
Calculate the Social Security and Medicare tax that would be applied to an annual
salary of $56,010. - answerSocial Security tax: $3,472.62, Medicare tax: $812.15
Which of the following statements accurately describes the result of a decreasing
worker-per-beneficiary ratio in the Social Security system? - answerFewer taxed
workers than beneficiaries means that more money is being drawn from the system for
the money put in. This leaves a shortage of money in the system making benefits for
future beneficiaries unsure.
Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for
maximum taxable earnings. - answer$9,014.10
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