WorksheetsTaxes Test
Total questions: 41
Worksheet time: 1hrs 2mins
Name
Class
Date
1.
The Social Security tax rate is
a)
1.45%
b)
6.20%
c)
7.65%
2.
Employees send their payroll taxes directly to the federal government.
a)
True
b)
False
3.
Employers use which form to compute the amount of federal income tax to withhold?
a)
Form W-4
b)
Form W-2
c)
Form 1040EZ
4.
Gross pay is the amount of pay the employee takes home.
a)
True
b)
False
5.
Who completes Form W-4?
a)
Employer
b)
Employee
c)
IRS
6.
The Wage and Tax Statement is also known as:
a)
Form W-2
b)
From 1040EZ
c)
Form W-4
d)
None of the Above
7.
Which of the following is true?
a)
Only tips paid in cash are taxable.
b)
Only tip income reported on W-2 is taxable.
c)
Tip income is not taxable.
d)
All tip income is taxable.
8.
Which of the following is not reported on Form W-2?
a)
Wages tips and other compensation
b)
Federal income tax withheld.
c)
Medicare tax withheld
d)
The number of withholding allowances claimed by the employee on W-4
9.
Is the Relationship Test met by each of the following: a brother, a sister, and a stepchild?
a)
Yes
b)
No
10.
Which person does not meet the Citizen or Resident Test?
a)
A U.S. citizen who lived in Japan for six months
b)
A permanent, full-time resident of Australia
c)
A permanent, full-time resident of Mexico
d)
A permanent, full-time resident of the United States
11.
Which statement is true about the Gross Income Tax?
a)
All dependents must meet the Gross Income Tax.
b)
Gross income includes all taxable and nontaxable income.
c)
Welfare benefits are included in gross income.
d)
Only taxable income is included in gross income.
12.
Select two types of exemptions from the list below.
a)
Personal
b)
Spouse
c)
Taxpayer
d)
Dependency
13.
An exemption increases the income that is subject to tax.
a)
True
b)
False
14.
A taxpayer and his or her spouse can each claim a personal exemption.
a)
True
b)
False
15.
What type of exemption do taxpayers claim for their infant children?
(a)
16.
A taxpayer cannot claim a personal exemption on his or her own tax return when he or she can be claimed as a dependent on another taxpayer's return.
a)
True
b)
False
17.
The highest standard deduction amount is associated with the married filing jointly and qualifying widow(er) with dependent child filing statuses.
a)
True
b)
False
18.
The lowest standard deduction amount is associated with the single and married filing separately filing statuses.
a)
True
b)
False
19.
The standard deduction amount affects the number of exemptions.
a)
True
b)
False
20.
The higher the standard deduction amount, the lower the taxable income.
a)
True
b)
False
21.
A taxpayer who can be claimed as a dependent on another taxpayer's return must claim the standard deduction for his or her filing status.
a)
True
b)
False
22.
True or False? Both the American Opportunity Credit and Lifetime Learning Credit can be claimed if a taxpayer has paid higher education expenses for an eligible student as long as they meet the general requirements.
a)
True
b)
False
23.
Mateo takes part-time classes at a local university. He is now a junior in college. Which credit is he eligible for?
a)
American Opportunity Credit
b)
Lifetime Learning Credit
c)
International Learning Credit
d)
None of the above
24.
Which of the following individuals is eligible for the American Opportunity Credit?
a)
Peter's daughter, a senior who is enrolled part time in the engineering degree program at a local university
b)
Kim, who is taking a part-time photography class at a community college
c)
Paulo, who is taking at least one-half of the normal course load required for the computer science associate's degree program, attending classes the entire school year
d)
None of the above
25.
Bruce and Toni are married and file a joint tax return. Toni is a part-time student at the local community college, earning credits toward an associate degree in nursing. Which credit is Toni eligible for on her tuition and fees?
a)
American Opportunity Credit
b)
Lifetime Learning Credit
c)
George Washington Credit
d)
Both A & B
26.
Interest and dividends are classified as what type of income?
a)
Three or more
b)
Investment
c)
Earned
d)
Tax
27.
Self-employment earnings are classified as what type of income?
a)
Three or more
b)
Investment
c)
Earned
d)
Tax
28.
What is reduced by the earned income credit?
a)
Three or more
b)
Investment
c)
Earned
d)
Tax
29.
The highest earned income credit is for taxpayers with how many qualifying children?
a)
Three or more
b)
Investment
c)
Earned
d)
Tax
30.
Which taxpayer can claim the earned income credit if all other requirements are met?
a)
A U.S. citizen who lived in Canada for the entire year with his child
b)
A taxpayer who uses the married filing a separate return filing status
c)
A taxpayer who earned $5,000 in self-employment income
d)
A taxpayer who does not have a Social Security number
31.
Which person cannot be claimed as a qualifying child?
a)
A 12-year-old stepdaughter who lived with the taxpayer in the United States for more than half of the tax year
b)
A 19-year-old brother and full-time student who lived with the taxpayer in the United States for more than half of the tax year
c)
A 5-year-old sister whose mother is claiming the credit with this child
d)
A 10-year-old foster child, placed by an authorized agency, who is cared for as the taxpayer's own child
32.
The taxpayer can receive the earned income credit even if the taxpayer's tax is zero.
a)
True
b)
False
33.
For the earned income credit, there is no adjusted gross income limit.
a)
True
b)
False
34.
If adjusted gross income is the same, the highest earned income credit is for a taxpayer without a qualifying child.
a)
True
b)
False
35.
The earned income credit reduces the income subject to tax.
a)
Yes
b)
No
36.
Taxpayers maintain good records to:
a)
identify sources of income.
b)
keep track of expenses.
c)
prepare tax returns.
d)
All of the above
37.
Which option is available for a taxpayer receiving a refund?
a)
Direct deposit in the taxpayer's bank account
b)
Direct debit from the taxpayer's bank account
c)
Credit card using a service provider
d)
Money order
38.
A tax refund can be received by direct deposit to a taxpayer's bank account.
a)
True
b)
False
39.
A tax payment can be made by check.
a)
True
b)
False
40.
All taxpayers can make tax payments using a direct debit from their bank account.
a)
True
b)
False
41.
A convenience fee is charged for credit card payments made through a service provider.
a)
True
b)
False
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