Personal Finance - Chapter 3 Quiz Review and Test
A declaration of estimated taxes is made by filing
Form 1040 ES
A tax audit is a(n)
IRS attempt to verify accuracy of return
____ income is subject to federal taxes.
Taxable
The total amount that you owe for income tax in one year is your tax
The total amount that you owe for income tax in one year is your tax
Estimated tax payments must be made by those who do not have taxes deducted from their earnings.
True
Personal exemptions are tax deductions based on the number of taxpayers and dependents in the taxpayer's household.
True
Russ and Lois got married December 30. Since they were single for most of the year, however, they can legally file as married taxpayers in the year of the wedding.
True
Tax avoidance is legal, tax evasion is illegal.
True
The Federal personal income tax is a progressive tax.
True
You have up to three years after mailing your tax return to file an amended tax return (1040X).
True
You should itemize deductions when total itemized deductions exceed the standard deduction.
True
For tax purposes, head-of-household refers to
a single individual with dependents
Which of the following is NOT one of the three basic categories for individual income?
gross income
The federal government gets the majority of its revenue from the ____ tax.
income
Your income tax withholding is dependent on
income level and number of withholding allowances
A ____ would be most likely to have to pay estimated taxes.
self-employed plumber
standard deduction
$3,700
The proper name of the so-called short form is
1040A
You made an error when you filed your tax return last year. You can correct this error by filing Form
1040X
A taxpayer can file for an automatic extension of ___ months.
6
A progressive tax system is one in which higher-income people pay ____ than lower-income people.
A progressive tax system is one in which higher-income people pay ____ than lower-income people.
Pete and Pam are married with four dependent children. Pete and Pam can legally file using which of the following filing statuses?
A. married filling separately B. married filling jointly Answer: a and b
Itemized deductions are listed on Schedule
Schedule A
The federal income tax is
progressive
If you do not wish to itemize deductions, you can use the
standard deduction