Which of the following statements about state and city income taxes is true?
A) State and city income taxes never use a flat tax rate.
B) If you owe federal income tax, you are not responsible for state or city income tax.
C) State and city income tax is based on your federal taxable income.
D) If you live in a city that charges income tax, you will not owe state income tax.
Q. 2Which report must taxpayers file each year to determine if they have paid enough taxes?
A) federal income tax report
B) federal income tax statement
C) federal income tax document
D) federal income tax return
Q. 3Which of the following describes how to calculate an employee's net job benefits?
A) Add the gross pay and the employee benefits.
B) Add the gross pay and the employee benefits and subtract the job expenses.
C) Subtract the job expenses from the employee benefits.
D) Subtract the employee benefits from gross pay.
Q. 4In a graduated tax system,
A) the tax rate stays the same regardless of taxable income.
B) the tax rate gets lower as taxable income gets larger.
C) the tax rate gets higher as taxable income gets smaller.
D) the tax rate gets higher as taxable income gets larger.
Q. 5Which term describes the amount of money on which a person must pay taxes?
A) withholding
B) net income
C) taxable income
D) pension
Quick Reply
