wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

PLAY: Tax Avoidance or Evasion?

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Angie, a software engineer, frequently adjusts her 401(k) contributions, sometimes reaching the maximum annual limit. She claims these contributions as a deduction on her taxes.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

2.

Stephen works as a server at a local restaurant where he receives cash and credit card tips as part of his income. At the end of his shift, he chooses to report his credit card tips, but not his cash tips.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

3.

Brooke donates money to a non-profit organization and reports a tax deduction for the amount of her charitable contribution.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

4.

Jacob, a freelance writer, uses a specific area in his home for his business. He claims a deduction on his tax return for expenses related to this part of his home.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

5.

Katie, a small business owner, claims her personal grocery expenses as an operational expense for her business on her tax return.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

6.

Jimmy has a high-deductible health insurance plan and makes sure to contribute the maximum amount each month in an effort to lower his taxable income.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

7.

Byron and Alexis open a 529 college savings account for their daughter's education. The earnings in this account are not reported on their taxes.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

8.

Kevin donates $10,000 to a charitable organization in addition to volunteering from time to time. He reports the $10,000 donation, plus an additional $5,000 (what he would have made at his job if he wasn’t volunteering) on his taxes.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

9.

Samantha has a variety of investments, including stocks, bonds, and mutual funds. Each year, she receives numerous statements about dividends and capital gains. She meticulously reports her largest gains, while omitting smaller gains or losses because they don’t significantly impact her investment income.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion

10.

Alex recently upgraded his home with energy-efficient windows and solar panels. He claims a credit on his tax return, reducing his tax liability.

a)

Legal - Tax Avoidance

b)

Illegal - Tax Evasion