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Paying Your Taxes Reading Quiz
QUESTION 6 of 10: Income tax is:
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a) Tax paid to the state, federal, and local governments based on income earned over the past year.
b) Income distributed to families based on the tax bracket they are in.
c) Tax the government pays to government workers.
d) None of the above.
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Answer:

a) Tax paid to the state, federal, and local governments based on income earned over the past year.

Explanation:

Income tax is the tax imposed on workers by the state or federal government. It is based on a worker's regular pay, for example, a monthly salary or wage. Income tax is usually a percentage of gross income.

Payment of income tax is mandatory. Employers are required to withhold the income tax amount and submit it to the state or federal government.