chapter 12 review

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

taxpayers maintain good records to

-prepare tax returns -identify sources of income -keep track of expenses

what information is included on the form W-2?

-the amount withheld from your paycheck for federal and local taxes -your amount due -your annual earnings -your refund amount

What is the criteria for completing a 1040EZ instead of a 1040 or 1040A?

-under 65 -claim no dependents -income consisted of wages, salaries, and tips are no more than 1500 of taxable interest - taxable income is less than 100,000 you will not itemize deductions

Charlissa is 20 years old and a full-time student. She earned $6,000 in her part-time job. Her parents provided more than half of her support. How many exemptions can Charlissa claim on her tax return?

0

Filing an extension gives you more time to pay any taxes you owe.

False - Extension is an extended deadline for FILING an income tax return.

The amount of federal income tax an employer withholds to send to the IRS depends on your tax credits.

False - allowances

Used to authenticate an electronically transmitted tax return

PIN

tax deduction

an expense that you can subtract from our adjusted gross income to figure your taxable income

What article grants the U.S. Government the power to establish and collect taxes?

article 1

some states collect a personal property tax on______

automobiles

earned income includes__________

bonuses from work

a person must use Form 1040 if he or she is

deducting a medical expense

which option is available for a taxpayer receiving a refund

direct deposit

who completes form W4? and when?

employee and before they can receive a paycheck

which amounts are not included in your gross income?

exclusions

form 1040A is the easiest tax form to complete.

false- 1040EZ is the easiest tax form to complete

an exemption increases the income that is subject to tax

false- an exemption decreases the income that is subject to tax

employees send their payroll taxes directly to the federal government

false- employer send their employee's payroll taxes directly to the federal governement

gross pay is the amount of pay the employee takes home

false- take home pay or Net Income

exclusion

income that is not taxed

withhold

portion of an employee's wages that is not included on his or her paycheck because it is remitted directly to the federal, state, and local tax authorities

Sally has never been married, lives alone, and has paid all the expenses of keeping up a home for herself and no one else. What is Sally's filing status?

single

earnings on a traditional IRA are_____

tax deferred (paid at a later date)

a tax credit is subtracted from

taxes owed

tax liabilty

the total amount of taxes owed

A taxpayer cannot claim a personal exemption on his or her own tax return when he or she can be claimed as a dependent on another taxpayer's return.

true

An estate tax is a federal tax on the value of a person's property at the time of his or her death.

true

The highest standard deduction (the amount of money they set aside and do not tax) amount is associated with the married filing jointly and qualifying widow(er) with dependent child filing statuses.

true

a tax audit is a detailed examination of your tax return by the IRS

true

a taxpayer and his or her spouse can each claim a personal exemption

true

the higher the standard deduction amount, the lower the taxable income

true

the lowest standard deduction amount is associated with the single and married filing desperately filling statuses

true

taxable income

your adjusted gross income less any allowable tax deductions and exmeptions

adjusted gross income

your gross income after calculating certain reductions

If you are self-employed, you must make estimated tax payments to the IRS throughout the year.

True

Employers use which form to compute the amount of federal income tax to withhold?

W-4

exemption

a deduction from adjusted gross income for the taxpayer, the spouse, and qualified dependents

estate tax

a federal tax collected on the value of a person's property at the time of his or her death

income tax return

a form on which a taxpayer reports how much money he or she received from working and other sources, and the exact taxes that are owed

inheritance tax

a state tax collected on the property left by a person to his or her heirs in a will

Mr. and Mrs. Song file a joint return. They have no children or dependents. They cannot be claimed as dependents on any other tax return. How many exemptions can the Songs claim on their joint tax return?

2

social security tax rate is

6.20%

Property tax is the primary source of revenue for the federal government.

FALSE - Income Tax

A taxpayer must provide more than half of a dependent's support to claim him or her on the tax return.

TRUE


Kaugnay na mga set ng pag-aaral

MKTG Unit 3 Practice Questions, Retail Q's Exam 3, RETAIL EXAM #3

View Set

Physical Science Chapter 12 part 2

View Set