My Tax Knowledge

My Tax Knowledge

What Are Taxes?

A sum of money demanded by a government to support
the government itself as well as specific facilities or
services

What is a community?

A group of people with common interests and concern
for the common good

What are the benefits of taxes?

Roads, Libraries, Military for National Security, public
Schools, Police and Fire Departments, Recreation

What is federal income tax?

Federal income tax is a tax levied by the United States
Internal Revenue Service (IRS) on the annual earnings of

individuals, corporations, trusts, and other legal
entities.

What is state income tax?

State Income taxes, which vary by state, are a
percentage of money that you pay to the state
government based on the income you make at your job.

What is a payroll tax?

A payroll tax is a tax that an employer withholds from
an employee's salary and pays to the government on

behalf of employees.

How do employers contribute to payroll taxes?

Payroll taxes help pay for benefits such as Social
Security and Medicare

What is a property tax?

A tax on property, such as land, buildings (including
homes), and motor vehicles

What is a sales tax?
A tax on purchased goods and services

What is an excise tax?

Taxes collected from the seller or retailer and as such
often remain hidden in the price of a product or service

What are the two most important things to know about
taxes?

Taxes collected from the seller or retailer and as such
often remain hidden in the price of a product or service

and the amount of taxes you pay and what you pay
those taxes on will vary depending upon where you live

and your income