WorksheetsPF 4-4 Filing Taxes
Total questions: 28
Worksheet time: 17mins
Which best describes Adjusted Gross Income (AGI)?
Wages after employer withholding and benefits
Income left after paying all monthly bills
Total income before any deductions or credits
Total income minus specific eligible deductions
Which statement defines Filing Status for a taxpayer?
A label for the taxpayer’s investment choices
A code for the taxpayer’s employer address
A bank category for savings and loans
A category describing marital and family situation
Form 1040 is primarily used for what purpose?
To apply for a new Social Security card
To file the annual individual income tax return
To request a refund of payroll withholdings
To report only investment income to banks
What is the main function of withholding from a paycheck?
To deduct money for taxes and benefits before pay
To give employees optional savings bonuses
To increase take-home pay through tax credits
To track hours worked for wage calculations
Which example is a tax deduction?
An amount directly cutting taxes owed
An expense subtracted from total income
A penalty added for late filing day
A bonus received from an employer
Which form reports dividends and similar investment distributions?
Form 1099-DIV
Form W-2
Schedule K-1
Form 1099-INT
Which form is used to report interest income from banks?
Form W-2
Form 1099-INT
Form 1099-R
Form 1099-NEC
Form 1099-NEC is used to report which payments?
Distributions from retirement accounts
Interest earned from savings accounts
Employer wages and annual compensation
Payments to non-employees for services
Form 1099-R reports what type of income?
Retirement and pension distributions
Self-employment service payments
Employee wages and salaries
Bank savings account interest
Which statement best describes Form W-2?
A form claiming itemized medical deductions
A form for reporting a partner’s share
A form for filing the annual 1040 tax return
A form showing employee wages and withholding
Which option defines income in a tax context?
Any money earned or received from activity
Only wages earned from a full-time job
Only investment gains from the stock market
Only cash tips received from customers
Itemized deductions are best described as what?
A refund automatically paid at year end
A penalty for underpaying estimated taxes
A fixed dollar amount available to every filer
Specific expenses taxpayers claim to reduce taxable income
What does Schedule K-1 report?
A partner’s share of partnership income and distributions
Interest income paid by financial institutions
An employee’s annual wages and tax withholding
Non-employee compensation received for services
What is the standard deduction?
A credit applied for having dependents
A variable amount based on itemized receipts
A fixed dollar amount reducing taxable income
A direct reduction of taxes owed to zero
Which statement defines a tax credit?
A delay in paying taxes until the next year
An expense subtracted from total annual income
A direct reduction in the amount of taxes owed
A bonus paid to workers by their employers
Tax Day in the United States refers to what?
The deadline to file federal tax returns
The day employers issue annual bonuses
The date states set for sales tax payments
The deadline to open retirement accounts
Which description fits a tax refund?
Money withheld from each regular paycheck
Money returned after paying more than owed
Money credited for making charitable gifts
Money paid when taxes are still owed
A tax return is best described as which item?
A letter sent to employers about wages
A receipt for sales tax on purchases
A set of forms reporting income and taxes
A single form to request a refund only
What is taxable income?
Income not subject to any tax rules
The portion of income that is subject to tax
Total income before any deductions or credits
Only income from salaries and hourly wages
Which two items directly reduce taxable income rather than taxes owed?
Tax credits claimed for education costs
Standard deduction applied to a filer
Itemized deductions for allowed expenses
Tax refund received after overpayment
An 18-year old high school senior who made enough money in the previous year to file their own tax return.
Single
Married Filing Jointly
Head of Household
Married Filing Separately
Qualifying Surviving Spouse
A husband and wife without any children.
Single
Married Filing Jointly
Head of Household
Married Filing Separately
Qualifying Surviving Spouse
A divorced man without any children.
Single
Married Filing Jointly
Head of Household
Married Filing Separately
Qualifying Surviving Spouse
A 45-year old divorced man whose ex-wife has full custody of their two children.
Single
Married Filing Jointly
Head of Household
Married Filing Separately
Qualifying Surviving Spouse
The ex-wife who has custody of their two children.
Single
Married Filing Jointly
Head of Household
Married Filing Separately
Qualifying Surviving Spouse
A tax return is...
Money you get back for working really hard
The Internal Revenue Service (IRS)
a report containing information used to calculate taxes owed by the taxpayer
a report that you give your boss when you start working
Not filing a tax return is a crime.
True
False
Individuals must file a tax return when...
their income reaches a level set by the IRS
it will happen automatically
they feel like it
On Christmas eve
