Understanding Tax Forms Quiz

What is the purpose of the W-2 form?

• To report your annual earnings and taxes withheld from your paycheck to the IRS.

• To calculate your state taxes.

• To itemize your deductions.

• To report earnings from self-employment.

Who is required to file a 1040 form?

• Only individuals who are self-employed.

• Anyone who has earned income in the U.S.

• Only individuals who earn more than $100,000.

• Non-resident aliens only.

Which of the following is NOT a tax deduction?

• Mortgage interest.

• Charitable donations.

• Vacation expenses.

• Medical and dental expenses.

What information does a W-2 form include?

• Your filing status and dependents.

• The amount of money you've earned from self-employment.

• The total amount of taxes withheld from your paycheck.

• Your bank account information.

Which form is used by individuals to file their annual income tax returns?

• W-4

• 1040

• W-2

• 1099

What can be deducted on a tax return to reduce taxable income?

• Work clothes and uniforms if required for your job and not suitable for everyday use.

• Commuting expenses to and from work.

• Personal vacations.

• Grocery expenses.

When is the W-2 form typically issued by employers?

• By January 31st of the following year.

• At the end of each quarter.

• By April 15th of the following year.

• Upon the employee's request at any time.

What is the standard deduction for the 2020 tax year for single filers?

• $6,350

• $12,400

• $18,650

• $24,800

Which of the following income is taxable?

• Gift from a family member.

• Life insurance payout upon death.

• Lottery winnings.

• Child support payments.

What does it mean to itemize deductions on a 1040 form?

• To choose the standard deduction.

• To list specific expenses that can be deducted from taxable income.

• To declare all sources of income.

• To calculate the Earned Income Tax Credit.