Which Of The Following Statements Is True About Taxes Everfi (2024)

FAQs

What do taxes pay for Everfi Module 2? ›

Taxes pay for roads and emergency services. 3. Taxes are often used at the federal, state, and local levels.

What do our taxes pay for? Taxes pay for those services like Medicare, Medicaid, the military, the national debt, police and fire protection, public schools, road maintenance, parks, libraries, and safety inspections of food, drugs and other products.

The U.S. tax system is completely progressive. *The federal income tax is progressive but sales, property, and other taxes tend to be regressive.

You can minimize your tax liability by increasing retirement contributions, taking part in employer-sponsored plans, profiting from losses, and donating to charities.

Final answer:

The true statement about taxes is that they pay for schools, government departments, roads, emergency services and are used at federal, state, and local levels, making option 'd) all of the above' correct.

Taxes provide revenue for federal, local, and state governments to fund essential services--defense, highways, police, a justice system--that benefit all citizens, who could not provide such services very effectively for themselves.

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point.

Individual Income Tax

Because of exemptions, deductions, and credits, most individuals do not pay taxes on all of their income.

Make sure that students understand that income and property taxes are paid directly to the government. Other taxes, such as sales tax, are paid indirectly.

The U.S. currently has seven federal income tax brackets, with rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%. If you're one of the lucky few to earn enough to fall into the 37% bracket, that doesn't mean that the entirety of your taxable income will be subject to a 37% tax. Instead, 37% is your top marginal tax rate.

What is the income tax system in the United States is considered a ___________________ tax system? ›

Key Takeaways

Progressive taxes are when the tax rate you pay increases as your taxable income rises. The US federal income tax is progressive, with tax brackets ranging from 10% to 37%. Regressive taxes are when the average tax burden decreases as income increases.

The federal government and most states have income taxes. The rules and rates vary between individual states and the federal system. Federal taxes are progressive, with higher tax rates on higher income levels. Some states have a progressive tax system, while others impose a flat tax rate on all income.

The federal government collects revenue from a variety of sources, including individual income taxes, payroll taxes, corporate income taxes, and excise taxes. It also collects revenue from services like admission to national parks and customs duties. In -1², the federal government collected $.

Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.

To inform your employer of how much federal income tax to withhold from your paychecks.

The amount of money you're paid after all taxes and deductions are taken out of your paycheck. Net pay is NOT __. Your gross pay plus any bonuses.

The three biggest categories of expenditures are: Major health programs, such as Medicare and Medicaid. Social security. Defense and security.

How does the government pay for roads, schools, and emergency services? They are funded through taxes.