WorksheetsDeductions review
Total questions: 20
Worksheet time: 3hrs 37mins
Every year, as long as you are earning money, you have to pay _________________ to the government.
nothing
interests
tips
income tax
Your total income is basically any money that _______.
you earn
you pay
you owe
all of answers
The U.S Tax System is called a progressive tax system because _______.
people have the same tax rate
people who earn more money have a higher tax rate
only people who are very rich need to pay income tax
people just pay tax if they want
If you fail to pay your federal income taxes, the U.S government can _______.
ask other people to help you to pay your tax
forgive you
ignore you
punish you (a fine or a prison sentence)
This form , which you get from your employer, tells you how much of your income was withheld for taxes
W-1
W-2
W-3
W-4
When will your employer send you a W-2 form?
When you are laid off
When they offer you a job
By January 31st, the following year
By December 31st of the year filing tax
Lily changed her filing status on last year's tax return, and her standard deduction went up. Which of these could have been the change she made?
"Head of household" to "Single"
"Single" to "Married filing jointly"
"Single" to "Married filing separately"
"Married filing separately" to "Single"
A divorce person must choose which filing status when filing federal income tax return?
Head of household
Married filing jointly
Single
Married filing separately
What does a deduction represent in the context of taxes?
A penalty added to your taxes
A bonus added to your refund
Money that can be subtracted from your income before taxes are calculated
An additional charge based on your income level
Why does everyone use deductions when calculating taxes?
A) To increase the amount of taxes owed
B) To avoid paying taxes altogether
C) To help save on how much they owe in taxes
D) Because it is optional and has no real impact
Which of the following statements is true about the standard deduction?
It is more complicated to file than itemized deductions.
It is only available for married filers.
It is used by most taxpayers and is the easiest to file.
It is a fixed amount regardless of filing status.
What type of deduction allows you to write off certain losses and expenses?
Standard Deduction
Itemized Deduction
Fixed Deduction
Variable Deduction
What does it mean to "write off" in the context of taxes?
To pay additional taxes
To have a loss of income be subtracted from your owed taxes
To ignore financial losses
To invest in stocks and side hustles
Which of the following might require an Itemized Deduction?
Expenses from running a business
Standard living costs
Basic personal expenses
Fixed salary income
What is the main purpose of deductions and exemptions?
To lower the amount of money you pay taxes on
To raise your gross income
To give the IRS your information
To have money withheld from your paycheck
AGI (Adjusted Gross Income) means the same thing as...
Taxable Income
Net Income
Taxes Paid
Salary
Who can claim the standard deduction?
Everyone
People Under 19
Full-time students under 24
65 & older
1. Where does the government get most of its money?
a. It prints money
b. It sells land
c. Taxes
d. It produces products to sell
e. Donations
6. What type of tax takes a percentage of the money you make on a job?
a. Income tax
b. Property tax
c. Sales Tax
d. Social Security tax
e. Medicare tax
A Federal tax form used to list deductions
Schedule B
Schedule A
Tax Credit
Tax Avoidance
