Federal Taxes Exam Questions with Complete Answers (100% Accurate)

The federal government gets its revenue from taxes. What is a synonym for 'revenue?' _________________. Correct Answer Income No federal estate taxes are paid until the value of the estate exceeds ____________________. Correct Answer 5,000,000 From what type of tax does the federal government get its largest share? Correct Answer Income Tax (47%) Payroll taxes are regressive. What does 'regressive' mean? Correct Answer Tax that takes a smaller % of income as income rises. As painful as it feels to pay income taxes, compared to past tax rates, federal income taxes are low/high? Correct Answer Low Write out the basic tax formula. Correct Answer 1. Total income - deductions (including giving)= taxable income 2. Calculate tax on taxable income (Chart) 3. Subtract prepayments (payments sent in through payroll or directly to IRS) and the total = tax owed or refund. The Federal government gets its revenue from _______? Correct Answer Taxes What are the percentages of the income the government gets from taxes for revenue? Correct Answer 9% Excise, estate and other 11% Corporate income tax 33% Payroll tax 47% Income tax What is Excise tax? Correct Answer Taxes on Tobacco, Alcohol, Firearms What the the "other" taxes? Correct Answer Tariffs, profits on federal lands Who pays estate taxes? Correct Answer Only higher valued estates What taxable portion of the estate is taxed at what %? Correct Answer 35% Who will pay taxes