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Taxable Income (Business math)

Total questions: 14

Worksheet time: 10mins

Name
Class
Date
1.

The ____ Amendment to the US Constitution established the income tax.

a)

14th

b)

15th

c)

16th

d)

17th

2.

Which item is NOT considered gross income?

a)

Commissions

b)

Tips

c)

Salaries

d)

Birthday gifts

3.

By law, employers must send all employees their W-2 by the end of January 31st.

a)

True

b)

False

4.

_____ _____ _____ is gross income minus selected government-approved deductions.



(a)  

5.

IRA stands for...

a)

Individual Retainer Account

b)

Individual Retirement Account

c)

Internal Revenue Associates

d)

Internal Retirement Arrangement

6.

Deduction is an adjustment to income that comes _____ the AGI is determined.

a)

before

b)

after

7.

Certain expenses qualify as a deduction and reduce the amount of taxable income is called...

a)

Adjusted Gross Income

b)

Subtracted

c)

Internal Deduction

d)

Itemized Deduction

8.

_______ _______ is a fixed amount that can be claimed instead of listing individual expenses.

(a)  

9.

Tax credit is an amount of money a tax payer is allowed to subtract from the taxes that are owed

a)

True

b)

False

10.

Which is NOT considered a tax credit?

a)

Dependents

b)

Car Insurance

c)

Low Income Earner

d)

American Opportunity Credit

11.

Which filing status is NOT correct?

a)

Divorced

b)

Married Filing Jointly

c)

Head of Household

d)

Married Filing Separately

e)

Widower

12.

Married filing jointly; Combined AGI: $112,742, Standard deduction: single-$5,800 married-$11,600; Tax credits: $9,500.

Find the taxable income.

(a)  

13.

Gross income of $86,440

Income adjustments:

Alimony - $9,025

HSA - $1,200

Find the AGI.



(a)  

14.

What does HSA stand for?

a)

Human Services Accounts

b)

Health Savings Account

c)

Health Savings Association

d)

Handicapped Scuba Association