Filing Your Taxes

What is the purpose of Form 1040?

• Reports mortgage interest if you own a home.

• Reports tuition payments if you're attending college.

• This form is used to file your taxes.

• Reports money a client paid you for freelance or contract work.

What does Form 1098-T report?

• Interest earned on savings and investments.

• Dividends earned on investments.

• Tuition payments if you're attending college.

• Interest paid on student loans.

Form 1099-MISC is used to report what type of income?

• Dividends earned on investments.

• Interest earned on savings and investments.

• Money a client paid you for freelance or contract work.

• Tuition payments if you're attending college.

Which form reports dividends earned on investments?

• Form 1099-DIV

• Form 1099-INT

• Form 1099-MISC

• Form 1098

What does a deduction represent in the context of taxes?

• A) A penalty added to your taxes

• B) A bonus added to your refund

• C) Money that can be subtracted from your income before taxes are calculated

• D) An additional charge based on your income level

Why does everyone use deductions when calculating taxes?

• A) To increase the amount of taxes owed

• B) To avoid paying taxes altogether

• C) To help save on how much they owe in taxes

• D) Because it is optional and has no real impact

What is the standard deduction amount for single filers?

• $27,700

• $13,850

• $10,000

• $30,000

What is the standard deduction amount for joint (married) filers?

• $13,850

• $25,000

• $27,700

• $30,000

Which of the following statements is true about the standard deduction?

• It is more complicated to file than itemized deductions.

• It is only available for married filers.

• It is used by most taxpayers and is the easiest to file.

• It is a fixed amount regardless of filing status.

What type of deduction allows you to write off certain losses and expenses?

• Standard Deduction

• Itemized Deduction

• Fixed Deduction

• Variable Deduction