Determining Taxable Income

What is considered as gross income for calculating federal income tax?

• Income from wages and tips only

• Total income for the year from various sources

• Income from unemployment compensation and game-show winnings only

• Income from investments and rental income only

What is adjusted gross income?

• Gross income minus certain allowable amounts

• Gross income minus taxes paid

• Gross income plus certain allowable amounts

• Gross income divided by the number of dependents

Which of the following is an example of an untaxed portion of gross income?

• Contributions to certain retirement accounts

• Dividends from investments

• Profits from a business

• Interest paid on mortgage

What is the benefit of a traditional tax-deferred retirement plan?

• You pay taxes on the money immediately

• You cannot withdraw the money at retirement

• You get to deduct the full amount of your contribution from your gross income

• You have to pay double taxes at retirement

When is the deadline to file your tax return for the calendar year?

• July 4th

• January 15th

• December 31st

• April 15th