Question

1. What are three common types of federal taxes? (1.5 points) 2. What are two common types of state taxes? (1.0 points) 3. What is a tax refund? (0.5 points) 4. What is payroll withholding? (0.5 points) 5. What is estimated tax? (0.5 points) 6. What is an IRS audit? (0.5 points) 7. What is a dependent? (0.5 points)

Answer 1

1. What are three common types of federal taxes? (1.5 points) federal income taxes, payroll taxes (Social Security and Medicare) and estate tax

2. What are two common types of state taxes? (1.0 points) Income tax, sales tax

3. What is a tax refund? (0.5 points) A refund ta taxpayer receives after filing a return

4. What is payroll withholding? (0.5 points) payroll taxes (Social Security and Medicare)  

5. What is estimated tax? (0.5 points) Estimated tax is the method used to pay tax on income that is not subject to withholding.

6. What is an IRS audit? (0.5 points)  An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.

7. What is a dependent? (0.5 points) s a person other than the taxpayer or spouse who entitles the taxpayer to claim a dependency exemption. Children are an example of this