PF: Chapter 10 Lesson 4 Filing Your Income Taxes

What is the purpose of filing a federal tax return?

• To calculate tax liability

• To pay taxes owed

• To report income and expenses

• To receive a tax refund

Do high school students earning less than $12,200 have to file a tax return?

• No, they don't earn enough to file

• Yes, to calculate their tax liability

• No, they are exempt from filing

• Yes, to get back any taxes taken out of their paychecks

What is the deadline for filing federal taxes?

• January 31

• February 28

• April 15

• May 31

What is the recommended percentage of income to set aside for taxes when self-employed?

• 20-25%

• 15-20%

• 25-30%

• 10-15%

Which form is commonly used to list income, expenses, and take the standard deduction?

• Form 1040 Schedule C

• Form W-2

• Form 1099-MISC

• Form 1040

What is the purpose of tax credits?

• To lower the tax bill

• To increase tax liability

• To report other income

• To lower taxable income

Which form is used by self-employed individuals to report profits and losses from their businesses?

• Form 1099-MISC

• Form 1040

• Form 1040 Schedule C

• Form W-2

What is the purpose of filing Schedule SE for self-employed individuals?

• To calculate tax liability

• To report other income

• To calculate Social Security taxes

• To claim tax credits

How long should you keep your filed taxes in case of an audit?

• 3 years

• 2 years

• 1 year

• 4 years

What is the recommended option for filing taxes to ensure faster processing?

• Mailing the tax return

• Filing electronically (e-filing)

• Using tax software

• Seeking help from a tax professional