WorksheetsPLAY: Tax Avoidance or Evasion?
Total questions: 10
Worksheet time: 5mins
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
Brooke donates money to a non-profit organization and reports a tax deduction for the amount of her charitable contribution.
Legal - Tax Avoidance
Illegal - Tax Evasion
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
Katie, a small business owner, claims her personal grocery expenses as an operational expense for her business on her tax return.
Legal - Tax Avoidance
Illegal - Tax Evasion
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
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.
Legal - Tax Avoidance
Illegal - Tax Evasion
Alex recently upgraded his home with energy-efficient windows and solar panels. He claims a credit on his tax return, reducing his tax liability.
Legal - Tax Avoidance
Illegal - Tax Evasion
