Chapter 3 HW Quiz

Fees, tips, and bonuses are forms of: A. passive income B. Earned income C. exclusions from income D. Tax- deferred income E. tax- exempt income

B. Earned income

A tax due on the purchase of gasoline is called a(n): A. estate tax B. excise tax C. income tax D. real estate property tax E. Inheritance tax

B. excise tax

According to Tax Service Warnings, who is responsible for supplying accurate and complete information for completing a tax return? A. professional tax preparer B. IRS enrolled agent C. Taxpayer D. Taxpayer's dependents E. Taxpayer's attorney

C. Taxpayer

At the end of the year, employees receive a ____ form that reports annual earnings and the amounts deducted for taxes from their employers. A. 1040 B. 1099 C. W-2 D. W-4 E. Schedule A

C. W-2

Gross income less adjustments to income equals: A. adjusted gross income B. earned income C. exclusions from income D. tax deferred income E. tax exempt income

A. adjusted gross income

A tax imposed on the value of a person's property at the time of death is called a(n): A. estate tax B. excise tax C. income tax D. real estate property tax E. Sales tax

A. estate tax

The tax that is a major source of revenue for local governments is called a(n): A. estate tax B. gift tax C. Income tax D. Real estate property tax E. Sales tax

D. Real estate property tax

A worker's primary goal should be to: A . pay his or her taxes using estimates for income and deductions B. pay no income taxes C. pay the average tax rate for people working in his or her industry D. pay his or her fair share of taxes while taking advantage of appropriate tax benefits E. pay no taxes of any type

D. pay his or her fair share of taxes while taking advantage of appropriate tax benefits

Income that is not subject to tax is called: A. adjusted gross income B. earned income C. passive income D. tax deferred income E. tax exempt income

D. tax-exempt income

the major sections of Form 1040 include all of the following except: A. filing status and exemptions B. adjustments to income (AGI) C. tax credits D. Signature E. All of these are major sections of Form 1040

E. All of these are major sections of Form 1040