ACCT 2020: Chapters 1-3

Stacy determined her tax liability was $8,235. Her employer withheld $7,500 from her paychecks during the year. Stacy's tax return would show:

• A refund of $735.

• Tax due of $735.

• A refund of $7,500.

• Tax due of $8,235.

What is the standard deduction for a person filing single in 2025?

• $25,900

• $15,750

• $14,600

• $13,850

Jim forgot to file his tax return by April 15. He did not file an extension. Jim finally filed his tax return on June 30 and had a remaining tax liability of $800. What is Jim's failure to file penalty? Assume he made all his payments on time.

• $40

• $800

• $120

• $510

In terms of dollars, wage-earning taxpayers will normally pay the majority of their tax liability:

• Through withholding from their wages

• In the following tax year.

• In advance in January.

• When they file their tax return.

Employers report wage income to employees on a:

• Form 1099-G.

• Form W-3.

• Form W-2.

• Form 1099-E.

To determine dependents, the taxpayer must meet three general tests and five specific tests. What are the three general tests? Check all that apply.

• Support Test

• Dependent Taxpayer Test

• Relationship Test

• Citizen or Resident Test

• Joint Return Test

The federal income tax is an example of a:

• Flat tax structure.

• Progressive rate structure.

• Regressive rate structure.

• Proportional rate structure.

Interest payers (banks, savings and loans, insurance companies, etc.) report interest earnings to taxpayers on a:

• Form 1099-DIV

• Form W-2 INT

• Form 4070

• Form 1099-INT

What was the interest charged on assessments by the IRS for the period April to June, 2025?

• 5%

• 7%

• 8%

• 6%

Employers can reimburse employees up to what amount per year of educational assistance, whether or not job-related.

• $5,250

• $50,000

• $2,500

• $5,520