Personal Finance Ch 3
Taxes on earnings that fund old age, survivor, and disability insurance benefits are called
Social security taxes
At the end of the year, employees receive a ____ form that reports annual earnings and the amounts deducted for taxes from their employers.
W-2
Fees, tips, and bonuses are forms of
earned income
A tax imposed on the value of a person's property at the time of death is called a(n)
estate tax
Federal income tax returns must be filed by April 1 of each year.
false
If your tax payments are less than the amount of income tax you owe, you are entitled to a refund.
false
Individuals are allowed to give money or items of any value to a person without being subject to estate taxes.
false
Income that is not subject to tax is called
tax exempt income
Amounts given for tuition payments or medical expenses are not subject to gift taxes.
true
Interest paid on a home equity loan is not deductible.
false
One of the best tax shelters is owning a car.
false
Using tax software will not save a taxpayer any time when preparing Form 1040.
false
Cash and prizes won on television game shows are subject to both federal and state taxes.
true
Every taxpayer receives at least the standard deduction, a set amount on which no taxes are paid.
true
One of the most frequent filing errors is not signing the return.
true