Dave Ramsey Chapter 11 Careers and Taxes Quiz

What are the different types of careers?

• Science, Agriculture, Marketing, Law

• Engineering, Retail, Hospitality, Manufacturing

• Sports, Journalism, Construction, Transportation

• Healthcare, Technology, Finance, Education, Arts

What is income tax?

• A tax imposed on individuals or entities that varies with their respective income or profits.

• A tax imposed on healthcare expenses

• A tax imposed on goods and services

• A tax imposed on property ownership

What are tax deductions?

• Expenses that increase taxable income

• Expenses that can be subtracted from taxable income

• Payments made to the government

• Additional income that is not taxable

Which form is used to file income tax?

• Form 1040

• Form 1099

• Form 1065

• Form W-2

What is the purpose of Form W-2?

• To track employee benefits

• To report wages, tips, and other compensation paid to employees as well as taxes withheld from their paychecks.

• To report employee attendance

• To report employee expenses

Which of the following is a tax credit?

• Child Tax Credit

• Car Tax Credit

• Pet Tax Credit

• Vacation Tax Credit

What is the penalty for not filing income tax?

• There is no penalty for not filing income tax

• The penalty for not filing income tax is a fixed amount

• The penalty for not filing income tax varies

• The penalty for not filing income tax is determined by the taxpayer's income

Which tax form is used to report self-employment income?

• Form 1099-MISC

• Form 1040 Schedule C

• Form 1040EZ

• Form W-2

What is the purpose of Form 1099?

• To report wages, salaries, and tips.

• To report deductions and credits.

• To report expenses and losses.

• To report various types of income other than wages, salaries, and tips.

What is the purpose of Form 941?

• To report property taxes

• To report sales taxes

• To report income taxes

• To report employment taxes