Chapter 1 Review

Using Form 1040, US Individual Income Tax Return, arrange the list below in order from top to bottom as they appear on the form.

1. Filing Status 2. First name and middle initial 3. Spouses social security number 4. Home address 5. State

Larry (37) has a savings account at a local bank. He earned $157 in interest in 2022. He can expect to receive Form ___________ from the bank to file his 2022 tax return.

1099 INT

Mary Thiel is qualified to file as head of household with taxable income of $48,700 using the 2022 Tax Table in the appendix Mary's amount of tax is $________

A. $5,430 B. $5,548 C. $5,436 D. $5,554 D. $5,554

Which of the following is earned income?

A. Dividends B. Graduation gift C. Self-employed business income D. Social Security payments C. Self employed business income

After a return is completed, what are the methods used to submit your return to the IRS? Choose all that apply.

A. E-file B. Email C. U.S. Mail D. Fax A and C- E-file and US Mail

Which of the following statements is correct about interest? Choose all that are correct

A. Total interest of more than $1,500 from all sources, must be reported on schedule B. B. Credit unions often call interest on deposits dividends. C. The amount of a penalty on early withdrawal of savings may be more than the total amount of interest income received by the taxpayer. D. U.S. Savings Bond and other Treasury obligation interest is taxable on the federal return and all state returns. E. Taxpayers will receive a Form 1099-INT, Interest Income, from their financial institution if the total interest is $10 or more. A,B,C,E

John and Christie Shepard are married, and they receive the following income for the year choose all that are considered unearned income

A. Wages: $70,500 B. Interest from the bank savings account: $30 C. Unemployment compensation: $10,000 D. Gift from John's father: $2,000 E. Dividends: $35 F. Christie side gig delivering groceries: $4,500 B,C,D,E

When filing a tax return for a deceased taxpayer, the surviving spouse will need to file form 1310 statement of person claiming refund they were deceased taxpayer to claim a refund.

False

The tax table is used by taxpayers whose taxable incomes are less than $100,000.

True or False True