3.2 Tax Returns Lesson

3.2 Tax Returns Lesson

Multiple Choice

A tax return is...

• Money you get back for working really hard

• a report containing information used to calculate taxes owed by the taxpayer

• The Internal Revenue Service (IRS)

Multiple Choice

Not filing a tax return is a crime.

• True

• False

Multiple Choice

_________________ is the primary source of revenue for the federal government.

• Individual income tax

• sales tax

• food

Multiple Choice

What does voluntary mean?

• Done, given, or acting by force. You do not have a choice.

• Done, given, or acting of one's own free will. By choice.

Multiple Choice

Individuals must file a tax return when...

• their income reaches a level set by the IRS

• they feel like it

• it will happen automatically

Multiple Choice

Filing status is a category that determines which tax form to use and the tax liability. It is based on your...

• job

• marital status

• unemployment

• house

Multiple Choice

The Wage and Tax Statement, which shows a person’s earnings and the amounts of income, is also known as the Form _-_.

• W-2

• 1099

• W-4

Multiple Choice

Unearned income is...

• earnings from sources other than work (ex: lottery winnings, interest, rent income)

• the income received from employment, including self-employment

Multiple Choice

•Taxable income is the amount on which taxes are calculated.

• True

• False

Multiple Choice

__________ is calculated by subtracting adjustments from total income.

• net pay

• gross pay

• adjusted gross income

• taxable income

Multiple Choice

Adjusted gross income is calculated by subtracting adjustments from total income. If your total income was $34,000 and your adjustments are $2,000. What is your adjusted gross income?

• $33,000

• $32,000

• $31,500

Multiple Choice

A tax deduction is....

• an amount of extra taxes to pay

• an amount that is added to adjusted gross income

• an amount that is subtracted from adjusted gross income

Multiple Select

Two types of tax deductions are:

(Choose 2)

• itemized deduction

• income deduction

• tax beak

• standard deduction

Multiple Choice

An amount that a taxpayer can claim for each person who is dependent on that person’s income is called an ________.

• tax break

• exemption

• liability

Multiple Choice

A dependent is...

• an adult individual who pays taxes and takes care of themselves

• someone who is lazy

• an individual who relies on someone else for financial support, such as a child, a spouse, or an elderly parent.

Multiple Choice

Your tax liability is..

• the amount of total tax owed on income for the year.

• the amount of tax income you saved.

• the number of dependents you have.

Open Ended

What information do you think is required for an individual to complete a tax return?