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MM Chapter 3.2

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

What is a tax return?

a)

A form used to report income and taxes to the government

b)

A document that lists all your expenses

c)

A receipt for a purchase

d)

A form for applying for a loan

2.

What is a tax credit?

a)

An amount that reduces the tax owed

b)

An amount added to the tax owed

c)

A penalty for late payment

d)

A bonus for early filing

3.

What is the purpose of reporting deductions and credits on a tax return?

a)

To increase taxable income

b)

To reduce taxable income

c)

To calculate state taxes

d)

To determine eligibility for loans

4.

What type of income is typically not included in a tax return?

a)

Salary

b)

Interest income

c)

Dividend income

d)

Gift income

5.

The IRS is responsible for enforcing laws related to which type of tax?

a)

Federal income tax

b)

State income tax

c)

Local sales tax

d)

International trade tax

6.

Which of the following can the IRS not simply take from you?

a)

Your passport

b)

Your bank account

c)

Your driver's license

d)

Your social security number

7.

What does IRS stand for?

a)

International Revenue Service

b)

Internal Revenue Service

c)

Income Revenue Service

d)

Independent Revenue Service

8.

What does the IRS stand for?

a)

Internal Revenue Service

b)

International Revenue Service

c)

Income Revenue Service

d)

Internal Return Service

9.

What can the IRS do if fraud is proven?

a)

Go back as many years as it likes to review returns

b)

Only review the current year's return

c)

Review returns for the past two years

d)

Review returns for the past five years

10.

Which of the following is a source of income that requires voluntary reporting?

a)

Dividends

b)

Tips

c)

Salary

d)

Interest

11.

What is the deadline for filing tax returns in the United States?

a)

April 15

b)

March 15

c)

May 15

d)

June 15

12.

Which filing status applies if you are married and both spouses have income?

a)

Married filing jointly

b)

Single

c)

Head of household

d)

Qualifying widow(er)