Taxes

Income received from sources other than employment:

• Social Security.

• taxable income.

• unearned income.

• earned income.

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns:

• W4.

• W2.

• 1099.

• 1040.

Employee-claimed exemptions on the W-4 to determine how much of an employee's pay to withhold from his or her paycheck for taxes:

• free exemptions.

• capital gain.

• dividend.

• allowances.

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for:

• earned income.

• corporate income tax.

• dividend.

• capital gain.

Which of the following statements are true about allowances, related to filing of income taxes?

• The less allowances you claim, the more money is withheld from your wages for income taxes

• The more people you need to support (dependents), the more allowances you can claim

• An allowance is a number that corresponds to the amount of tax withheld from your paycheck

• all of these are correct.

A category that defines the type of tax return an individual will use, primarily based on marital status; it also determines the size of your tax brackets and how much of your income is taxed at each rate:

• exemption.

• excise tax.

• filing status.

• dependents.

A percentage of profits paid by a business to the federal and state government:

• discretionary spending.

• earned income.

• unearned income.

• corporate income tax.

A tax paid on purchases of a specific good, like gasoline or cigarettes:

• income tax.

• excise tax.

• exemption tax.

• FICA.

The IRS recommends that you complete a new Form W-4 every time a major life event occurs, such as:

• a spouse gaining or losing a job.

• birth of a child.

• marriage.

• all of these are correct.

You should only receive a Form W-2 if you are:

• an employer.

• an employee.

• a contract worker.

• a tax preparer.