Test Your Taxation Knowledge - An Irresistible Paying Your Taxes Reading Comprehension Quiz!

Property tax is a tax assessed on the value of real estate or personal property. It is commonly levied by local governments and used to fund public services like schools and public safety.

In a progressive tax system, the tax rate increases as the taxpayer's income rises. This approach aims to impose a larger tax burden on higher-income individuals to promote equity.

Payroll tax refers to the taxes withheld from an employee's paycheck by the employer to cover income tax, Social Security, Medicare, and other applicable taxes.

Income tax is primarily collected by the government to finance various public projects, services, and programs, such as infrastructure development, education, healthcare, and defense.

Estate tax is a tax imposed on the transfer of a deceased person's estate to their heirs or beneficiaries. It is based on the total value of the estate and is separate from inheritance tax.

Sales tax is a consumption-based tax imposed on the purchase of specific goods and services. It is usually a percentage of the purchase price and is collected by the seller.

The Federal Insurance Contributions Act (FICA) tax is a payroll tax that funds Social Security and Medicare benefits. It is levied on both employees and employers to support these social insurance programs.

A tax deduction is an expense that is subtracted from a person's or business's total income, reducing the amount of income subject to taxation and ultimately lowering the tax liability.

The acronym "IRS" stands for the Internal Revenue Service, which is the federal agency responsible for collecting taxes and enforcing tax laws in the United States.

A tax credit is a direct reduction of the amount of taxes owed. It is subtracted from the total tax liability, providing a dollar-for-dollar reduction in taxes.