Tax Day

Your friend Lailia is talking to you about the benifits of tax filing software. Which of the following is true?

• The Software comes with free access to professionals who can help you if you have a question.

• You can avoid the cost of having to pay a professional, though you may have to pay for the software and/or e-filing online.

• You are guaranteed a higher refund than if you were to use a paper form or hire a professional.

• You are 50% less likely to make a mistake when e-filing your taxes than if you were to file them using paper forms.

When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a _____.

• withholding

• direct deposit

• deduction

• refund

Emma and Liam are discussing their finances. Liam mentions a term 'tax deduction'. Emma is unsure about it. Liam explains that a tax deduction is...

• Money you get back for working really hard

• A reduction in tax obligation from a taxpayer's gross income

• The Internal Revenue Service (IRS)

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company?

• You need to file your tax return by the end of the calendar year

• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

• You must file your tax return by April 18th, 2022 or request an extension by that date

• You do not need to pay any income taxes until April 18th, so you should ask your company to wait until after that date to withhold any money

What is Tax Day in the United States?

• April 15th

• April 18th

• April 1st

• April 30th

Which government agency is responsible for collecting taxes in the United States?

• Federal Reserve

• Department of Treasury

• Internal Revenue Service (IRS)

• Social Security Administration

What happens if you miss the Tax Day deadline without filing an extension?

• You receive a refund

• You may face penalties and interest

• Your taxes are automatically filed

• You are exempt from taxes for the year

Which form is commonly used by individuals to file their federal income tax returns in the U.S.?

• Form W-2

• Form 1099

• Form 1040

• Form 4868

What is the purpose of a tax refund?

• To penalize taxpayers

• To return excess taxes paid

• To increase tax liability

• To fund government projects

What is a tax deduction?

• An increase in taxable income

• A reduction in tax obligation

• A penalty for late filing

• A type of tax credit