Tax Deductions test

What form is used to file an individual income tax return in the United States?

• Form 1040EZ

• Form 1040

• Form W-2

• Form 1099

Which of the following is NOT a category of itemized deductions on Form 1040?

• Medical and dental expenses

• State and local taxes

• Work-related travel expenses

• Standard deduction

What is the maximum deduction for student loan intersest per year?

• $2050

• $2000

• $2500

• $2550

Which of the following expenses can be itemized on Form 1040?

• Personal living expenses

• Charitable contributions

• Federal income taxes

• Cost of goods sold

To itemize deductions on Form 1040, which schedule must be attached?

• Schedule A

• Schedule B

• Schedule C

• Schedule D

What is the threshold for deducting medical and dental expenses as itemized deductions?

• 7.5% of adjusted gross income

• 10% of adjusted gross income

• 5% of adjusted gross income

• 15% of adjusted gross income

Which of the following is true about itemized deductions vs. standard deductions?

• You can claim both itemized and standard deductions in the same year.

• You should itemize deductions if your total itemized deductions are less than your standard deduction.

• You should itemize deductions if your total itemized deductions are more than your standard deduction.

• Standard deductions are only available to taxpayers over the age of 65.

What is the purpose of the "Qualified Business Income Deduction" on Form 1040?

• To deduct expenses related to rental property income

• To deduct up to 20% of qualified business income from a pass-through entity

• To deduct all personal expenses related to business travel

• To deduct the cost of goods sold for a manufacturing business

Which of the following statements about completing Form 1040 for deductions is FALSE?

• You must decide whether to take the standard deduction or itemize deductions.

• You can change your choice between standard and itemized deductions after filing your return.

• You need to provide documentation for any itemized deductions you claim.

• The IRS may require proof of your deductions if your return is audited.

What is the deadline for filing Form 1040 for most taxpayers?

• April 15

• May 15

• March 15

• July 15