Understanding Taxes and Deductions

A W-2 form is used to report (a)   and tax withheld by an employer.

• To report self-employment income
• To report wages and tax withheld by the government
• To apply for a tax refund
• To claim tax deductions

Which of the following is considered a capital gain?

• Income from a salary

• Profit from selling a stock

• Interest earned from a savings account

• A gift received from a relative

What is the purpose of the standardized deduction?

• To reduce taxable income by a fixed amount

• To increase the amount of tax owed

• To report capital gains

• To calculate self-employment tax

Tags

CCSS.7.RP.A.3

Which of the following is an example of an itemized deduction?

• Standard deduction

• Mortgage interest

• Capital gains

• W-2 income

A tax bracket is (a)  

• A form used to report income
• A range of income taxed at a specific range
• A deduction for charitable contributions
• A penalty for late tax filing

Tags

CCSS.7.RP.A.3

Selling an asset for less than its purchase price is called a (a)   .

• Capital gain
• Capital loss
• Tax deduction
• Tax credit

Tags

CCSS.RI.11-12.5

CCSS.RI.8.3

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Which of the following is true about the standardized deduction?

• It varies based on the taxpayer's income

• It is the same for all taxpayers regardless of filing status

• It is a fixed amount that reduces taxable income

• It can only be claimed by self-employed individuals

W-2 forms are typically issued to employees (a)   .

• Monthly
• Quarterly
• Annually
• Biannually

Match the following expenses with their typical inclusion in itemized deductions.

• Not typically included in itemized deductions

• Car Repairs

• Typically included in itemized deductions

• Personal living expenses

• Typically included in itemized deductions

• Charitable contributions

• Not typically included in itemized deduc

• Medical expenses

What happens to your tax rate as you move into a higher tax bracket?

• It decreases based on qualified amount

• It stays the same

• It increases based on qualified amount

• It becomes zero