Taxes Test

What is the primary purpose of Form W-4?

• To file your annual tax return

• To report your income to the IRS

• To determine how much federal income tax is withheld from your pay

• To apply for a social security number

What does Step 3 of Form W-4 primarily address?

• It primarily addresses the filing status.
• It primarily addresses the tax credits available.
• It primarily addresses the total income.
• It primarily addresses the number of dependents.

What is the primary purpose of Form W-2?

• To report an employee's annual income to the IRS

• To calculate an employee's tax refund

• To apply for Social Security benefits

• To request a raise from an employer

What is the primary purpose of Form 1040?

• To report business expenses

• To file U.S. individual income tax returns

• To apply for government benefits

• To request a tax refund

 Which of the following is NOT a filing status option on Form 1040?

• Single

• Married filing jointly

• Head of household

• Dependent filing separately

What is the purpose of line 11 on Form 1040?

• To calculate total income

• To report adjusted gross income

• To determine taxable income

• To show total tax owed

Which of the following is NOT included in the "Payments" section of Form 1040?

• Federal income tax withheld

• Estimated tax payments

• Earned income credit

• Capital gains

What information is required for direct deposit of a tax refund?

• Social Security number only

• Bank name and address

• Routing number and account number

• Credit card number

What does the "Third Party Designee" section allow a taxpayer to do?

• Appoint someone to represent them in tax court

• Allow another person to discuss the return with the IRS

• Designate a beneficiary for tax purposes

• Authorize electronic filing of the return

Who is required to file a 1040 form?

• Only individuals who are self-employed.

• Anyone who has earned income in the U.S.

• Only individuals who earn more than $100,000.

• Non-resident aliens only.