Chapter 8 lesson 3

When is the federal income tax filing deadline?

• January 31

• April 15

• October 31

• July 4

What is the purpose of a tax credit?

• To increase taxable income

• To lower tax bill

• To report income and expenses

• To calculate Social Security tax

What is the main form used to list income, expenses, and take the standard deduction?

• Form 1099-DIV

• Form 1040

• Form 1099-INT

• Form 1098

When should you have all your W-2s?

• January 31

• October 31

• July 4

• April 15

What is the purpose of a tax schedule?

• To calculate Social Security tax

• To report mortgage interest

• To report certain types of income or deductions

• To report profits and losses

What is the difference between standard deduction and itemized deduction?

• Standard deduction is a list of eligible expenses, itemized deduction is a dollar amount subtracted from income

• Standard deduction is for self-employed individuals, itemized deduction is for employees

• Standard deduction is a special tax form, itemized deduction is a main tax form

• Standard deduction is a dollar amount subtracted from income, itemized deduction is a list of all eligible expenses

What is the purpose of Form 1099-MISC?

• To report interest earned on savings and investments

• To report amount a client paid for freelance or contract work

• To report profits and losses

• To report mortgage interest

What is the big difference for self-employed people when filing taxes?

• Reporting income on Form 1098-E instead of Form W-2

• Having an employer pay half of FICA taxes

• Filing Schedule SE to figure out Social Security taxes

• Filing Schedule A instead of Form 1040

What is the purpose of keeping filed taxes for at least three years?

• To calculate tax liability

• To report certain types of income or deductions

• To save hundreds on tax bill

• In case of an IRS audit

What is the purpose of e-filing when filing taxes?

• To make the process faster

• To report profits and losses

• To calculate Social Security tax

• To increase tax liability