S1 Final

FICA taxes are shared by the employee and employer.

• True

• False

The W-4 form is used to calculate and claim withholding allowances.

• True

• False

Individuals are required to file a federal income tax return every year.

• True

• False

The W-2 form is one of the most common forms for filing tax returns.

• True

• False

An expense is tax deductible if it qualifies as a deduction from adjusted gross income.

• True

• False

Taxable income equals gross income plus the standard deduction.

• True

• False

More exemptions will result in higher taxes.

• True

• False

Self-employed people are exempt from federal income tax but not FICA taxes.

• True

• False

Interest is a fee charged by a borrower to a lender for the use of money.

• True

• False

Compound interest is paid on principal and accumulated interest.

• True

• False

Tags

CCSS.HSF-IF.C.8B