Preparing Your 1040 Tax Form - Practice

Who is responsible for providing the W2 form to a company's employees?

• Employees use their final pay stub for the year to find that information

• The employer sends a completed W-2 form to their employees in January

• The IRS sends a completed W-2 form to individuals before April 15th

• There are no set rule requirements; employees must locate this info on their own.

It is not necessary to check your W-2 form for errors. Your employer will always have the correct information.

• TRUE

• FALSE

How can you pay your taxes if you owe money?

• Credit Card

• Debit Card

• Direct payment by check

• All the above

Employers are required to deduct federal income taxes from your paycheck. Which is NOT a paycheck deduction???

• credit card interest

• Medicare

• Social Security

• State income tax

Taxable income is defined as ________.

• a portion of income, AFTER deductions, that is subject to tax

• the TOTAL income earned during the taxable year

• income earned during the year, MINUS Federal income payments

• an individual's monthly take-home pay

Which of the following statements are TRUE???

• Every adult living in the US must file a form 1040 with the IRS

• Federal taxes are due by the end of January every single year

• Federal taxes are due by April 15th no matter what; NO exceptions

• Taxes are due on April 15th by using a 1040 form; extensions may be filed