Taxation Quiz 2

What is a W-2 Form used for?

• Reporting freelance income

• Reporting employee's annual wages and taxes withheld

• Reporting investment income

• Reporting business expenses

Which form is used to report income from freelancing and contract work?

• W-2 Form

• 1040 Form

• 1099 Form

• Schedule C

What does a tax bracket represent?

• A fixed tax rate for all income

• A range of income taxed at a particular rate

• A deduction from taxable income

• A type of tax return form

What is Adjusted Gross Income (AGI)?

• Total income before any deductions

• Total income minus specific deductions

• Total income after taxes

• Total income plus bonuses

What is a standard deduction?

• A percentage of income taxed

• A fixed dollar amount reducing taxable income

• A tax credit for low-income individuals

• A penalty for late tax filing

What are itemized deductions?

• Deductions for business expenses

• Eligible expenses reported to decrease taxable income

• A flat rate deduction for all taxpayers

• Deductions for charitable contributions only

What is taxable income?

• Total income before any deductions

• Income after all taxes are paid

• Income used to calculate tax owed

• Income exempt from taxes

What does withholding refer to?

• Income exempt from taxes

• Portion of wages not included in paycheck

• Total income after deductions

• Tax refund amount

What is a tax return?

• A form to report only expenses

• A form to report income, expenses, and tax information

• A form to request a tax audit

• A form to apply for tax credits

What does filing status determine?

• The amount of tax refund

• The type of tax return form used

• The total income before deductions

• The tax rate for all income