WorksheetsFederal Income Taxes
Total questions: 30
Worksheet time: 17mins
Name
Class
Date
1.
Progressive taxes are based on the ability to pay.
a)
True
b)
False
2.
An example of a regressive tax is the property tax.
a)
True
b)
False
3.
Proportional taxes are based on a flat rate that does not change according toincome level.
a)
True
b)
False
4.
Use of a tax preparer absolves you of any responsibility for an error on yourtax return.
a)
True
b)
False
5.
The sole function of the Internal Revenue Service is the collection of income taxes.
a)
True
b)
False
6.
The power to levy taxes rests with the Congress of the United States.
a)
True
b)
False
7.
By designating $3 to go to the Presidential Election Campaign Fund, you areincreasing your tax liability by $3.
a)
True
b)
False
8.
In a graduated tax system, tax rates increase as income increases.
a)
True
b)
False
9.
In the U.S., responsibility for paying income taxes rests with the individual.
a)
True
b)
False
10.
Tax evasion is a serious crime punishable by a fine or imprisonment or both.
a)
True
b)
False
11.
To itemize deductions, you must use the long Form 1040 (Schedule A).
a)
True
b)
False
12.
If you have many deductions, it’s a good idea to take the standard deduction.
a)
True
b)
False
13.
Each exemption claimed by a taxpayer reduces total tax liability.
a)
True
b)
False
14.
Taxable income includes such things as wages, tips, salaries, alimony, andchild support.
a)
True
b)
False
15.
Workers’ compensation and unemployment compensation are not taxable.
a)
True
b)
False
16.
You cannot itemize deductions on Form 1040A.
a)
True
b)
False
17.
Taxpayers should not itemize unless their deductions exceed the standard deduction.
a)
True
b)
False
18.
You must file a tax return to receive a refund of taxes withheld unnecessarily.
a)
True
b)
False
19.
You must use Form 1040 if you received alimony or if your taxable incomeexceeds $50,000.
a)
True
b)
False
20.
The “ability-to-pay principle” is an accepted principle of tax fairness.
a)
True
b)
False
21.
The income tax is an example of which type of tax?
a)
progressive
b)
proportional
c)
regressive
d)
excise
22.
The sales tax is an example of which type of tax?
a)
progressive
b)
proportional
c)
regressive
d)
excise
23.
The property tax is an example of which type of tax?
a)
progressive
b)
proportional
c)
regressive
d)
excise
24.
As taxable income increases, income tax rates
a)
increase
b)
decrease
c)
stay the same
d)
could go either way
25.
A person who lives with you and receives support from you is called a(n)
a)
taxpayer
b)
dependent
c)
tax credit
d)
exemption
26.
You must file your federal income tax return no later than
a)
December 31
b)
January 1
c)
January 31
d)
April 15
27.
According to the U.S. Constitution, the power to tax rests with the
a)
President
b)
Senate
c)
Congress
d)
House Ways and Means Committee
28.
An examination of tax returns by the IRS is called
a)
tax evasion
b)
an audit
c)
a tax bracket
d)
an itemization
29.
Which of the following people must sign a tax return?
a)
the taxpayer
b)
the taxpayer's spouse
c)
the person who prepared the tax return
d)
all of these
30.
Which of the following is not taxable income to be included on a tax return?
a)
tips
b)
alimony
c)
child support
d)
unemployment compensation
100 %
