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U2 Federal Income Tax

Total questions: 19

Worksheet time: 28mins

Name
Class
Date
1.

As taxable income decreases, income tax _____.

a)

Decreases

b)

Increases

c)

Remain the same

2.
The ability-to-pay principle states _____.
a)
People with higher incomes should get fewer credits on their tax return
b)
Businesses do not have to file tax returns
c)
People with higher incomes should pay more taxes
d)
People with lower incomes should pay higher taxes
3.

You move up in _____ as your taxable income increases.

a)

tax brackets

b)

credits

c)

refund amount

d)

allowances

4.
 Sales tax is an example of which type of tax?
a)
Regressive
b)
Excise
c)
Proportional
d)
Progressive
5.

On the Roger's year 2022 1040 tax return, Tax Line 24 exceeds Total tax payments Line 33. Does Roger have a refund or amount owed?

a)

owes money to the IRS

b)

should increase his payroll allowances

c)

will get a refund

d)

should increase his salary

6.

William received a letter in the mail from the IRS requesting tax documentation. Which term describes this process?

a)

Audit

b)

Tax evasion

c)

Tax exemption

d)

Proportional tax

7.

Which entity has the power to create or alter federal income tax and tax laws?

a)

Congress

b)

Supreme Court

c)

Internal Revenue Service

d)

State governor

8.
Property tax is an example of which type of tax?
a)
Excise
b)
Progressive
c)
Regressive
d)
Proportional
9.

Which of the following is NOT on the 1040EZ?

a)

Wages, salaries, and tips

b)

Taxable income

c)

Head of the household tax filing status

d)

Earned Income Credit (EIC)

10.

On your tax return, which of the following is EXCLUDED from gross income on a tax return?

a)

Unemployment compensation

b)

Child support you receive

c)

Interest earned on a Certificate of Deposit (CD)

d)

Tips

11.

Your paycheck is largest if you elect which of the following allowances on your Form W4? (Ch2)

a)

4

b)

2

c)

5

d)

3

12.
Income tax is an example of which type of tax?
a)
Proportional
b)
Progressive
c)
Excise
d)
Regresive
13.
Single, Married Filing Joint, and Head of the Household are all examples of___ on a tax return.
a)
filing status
b)
standard deductions
c)
itemized deductions
d)
dependents
14.
By what date must employers mail Wages and Tax Statements to employees?
a)
January 31
b)
April 15
c)
January 1
d)
March 1
15.
Which of the following found on a tax return, REDUCES your tax?
a)
Unemployment compensation
b)
Taxable interest
c)
Tips
d)
Credits
16.
How long should you keep copies of your tax returns and other supporting tax documents?
a)
one year
b)
one month
c)
three years
d)
three months
17.

____ is the deadline to file your tax return.

a)

January 31

b)

January 1

c)

December 31

d)

April 15

18.
Income tax is an example of which type of tax?
a)
Proportional
b)
Progressive
c)
Excise
d)
Regressive
19.

Which of the following is NOT included in gross income (on your tax return)?

a)

Wages

b)

Tips earned as wait staff

c)

Interest earned on savings/ bonds

d)

Alimony you paid