Question

vocabulary check

1. genas ___ was less than what she expected because of all the taxes that were taken out.
2. matthew had to pay ___ on the car he pur - chased.
3. money collected by the government for the purpose of operating the government is called a ___.
4. if robin multiplied her hourly wage by the number of hours she worked, she would be able to figure her ___.
5. bobbys employer was required to withhold ___ on all the employees at the pizza parlor and pay that amount to the government every quarter.
6. to find out more about paying taxes, horace went to the ___ web site.
7. amanda had to file a ___ before april 15 on her earnings from her job at the gym.
8. colin found out that fica was money withheld and sent to the government that funded _ and _ for retirees.
9. the taxes imposed on milads earnings reflect his ___.
10. the first step for amanda to calculate how much federal tax she owes was to determine her ___. this would be her income from almost any source, especially her job at the gym.
11. dillons dad sold stock for a profit and had to report the ___ on his tax return.
12. amanda needed to calculate her _ and _ for her tax return to determine which method would give her the smallest tax liability.
13. robins mother reminded her that her ___ would not be the same as her gross pay because taxes would be taken out.
14. amandas ___ was figured after she subtracted her allowable amounts, such as moving expenses and student loan interest paid, from her total income.

adjusted gross income
capital gain
gross income
gross pay
internal revenue service
itemized deduction
medicare
net pay
payroll tax
personal income tax
sales tax
social security
standard deduction
take - home pay
tax
tax return

Explanation:

1. After taxes are deducted from earnings, the remaining amount is net pay. So for Gena, it's net pay.
2. A tax on the purchase of a car is a sales tax. So Matthew pays sales tax.
3. Money collected by the government for its operations is called tax.
4. Hourly - wage multiplied by hours worked gives gross pay.
5. Employers withhold payroll tax from employees' pay and pay it to the government.
6. The Internal Revenue Service (IRS) website provides tax - related information.
7. To report earnings for tax purposes, one files a tax return.
8. FICA funds Social Security and Medicare for retirees.
9. Taxes on earnings reflect personal income tax.
10. To calculate federal tax, one first determines gross income which includes income from various sources.
11. Profit from selling stock is reported as capital gain on a tax return.
12. To minimize tax liability, one calculates itemized deductions and standard deduction to see which is more beneficial.
13. Take - home pay is different from gross pay as taxes are deducted from gross pay.
14. After subtracting allowable amounts from total income, one gets adjusted gross income.

Answer:

1. net pay
2. sales tax
3. tax
4. gross pay
5. payroll tax
6. Internal Revenue Service
7. tax return
8. Social Security; Medicare
9. personal income tax
10. gross income
11. capital gain
12. itemized deductions; standard deduction
13. take - home pay
14. adjusted gross income