Taxation Quiz

What is the standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns?

• 1040

• I-9

Which form details all "non-employee" compensation, including for specific jobs like freelancers or contractors?

• 1099

• I-9

What is an inspection of a filer’s tax return by the IRS called?

• Exemption

• Audit

What is the profit from the sale of an asset, such as a stock or a bond, called?

• Interest Income

• Capital Gain

What is the percentage of profits paid by a business to the federal and state government called?

• Excise Tax

• Corporate Income Tax

Who is someone you financially support and can be "claimed" on a tax return to reduce your taxable income?

• Medicaid

• Dependent

What is money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis, called?

• Dividend

• Interest Income

What is any income (wages/salary) that is generated by working called?

• Earned Income

• Capital Gain

What is a tax paid on purchases of a specific good, like gasoline or cigarettes, called?

• Payroll Tax

• Excise Tax

What is the set amount of money, per dependent, you can subtract from your taxable income called?

• Exemption

• Medicaid