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ACCT 2020: Chapters 1-3

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

Stacy determined her tax liability was $8,235. Her employer withheld $7,500 from her paychecks during the year. Stacy's tax return would show:

a)

A refund of $735.

b)

Tax due of $735.

c)

A refund of $7,500.

d)

Tax due of $8,235.

2.

What is the standard deduction for a person filing single in 2025?

a)

$25,900

b)

$15,750

c)

$14,600

d)

$13,850

3.

Jim forgot to file his tax return by April 15. He did not file an extension. Jim finally filed his tax return on June 30 and had a remaining tax liability of $800. What is Jim's failure to file penalty? Assume he made all his payments on time.

a)

$40

b)

$800

c)

$120

d)

$510

4.

In terms of dollars, wage-earning taxpayers will normally pay the majority of their tax liability:

a)

Through withholding from their wages

b)

In the following tax year.

c)

In advance in January.

d)

When they file their tax return.

5.

Employers report wage income to employees on a:

a)

Form 1099-G.

b)

Form W-3.

c)

Form W-2.

d)

Form 1099-E.

6.

To determine dependents, the taxpayer must meet three general tests and five specific tests. What are the three general tests? Check all that apply.

a)

Support Test

b)

Dependent Taxpayer Test

c)

Relationship Test

d)

Citizen or Resident Test

e)

Joint Return Test

7.

The federal income tax is an example of a:

a)

Flat tax structure.

b)

Progressive rate structure.

c)

Regressive rate structure.

d)

Proportional rate structure.

8.

Interest payers (banks, savings and loans, insurance companies, etc.) report interest earnings to taxpayers on a:

a)

Form 1099-DIV

b)

Form W-2 INT

c)

Form 4070

d)

Form 1099-INT

9.

What was the interest charged on assessments by the IRS for the period April to June, 2025?

a)

5%

b)

7%

c)

8%

d)

6%

10.

Employers can reimburse employees up to what amount per year of educational assistance, whether or not job-related.

a)

$5,250

b)

$50,000

c)

$2,500

d)

$5,520