Ramsey - Chapter 10 - Lesson 3 (Quiz)

What is a "Tax Return"?

• The total tax a person or business has to pay

• A report that a taxpayer has to submit annually

• The income ranges in which tax rates apply

• The annual deadline for filing your income taxes

What determines the amount of tax withheld from your paycheck?

• Your age

• Your taxable income

• Your Form W-4

• Your marital status

What does the IRS stand for?

• Internal Revenue Service

• International Revenue System

• Income Revenue Service

• Internal Revenue System

Why is it important to know your taxable income?

• To avoid paying taxes

• To determine your tax bracket

• To increase your income

• To reduce your expenses

By when are employers required to provide tax documents to employees?

• End of January

• End of February

• End of March

• End of April

What is the name of the year-end report provided by employers?

• Form W-2

• Form 1040

• Form 1099

• Form 940

How much money in tax refunds goes unclaimed each year according to the IRS?

• Over $1 billion

• Over $500 million

• Over $2 billion

• Over $3 billion

What does a big tax refund indicate about your tax payments?

• You overpaid your taxes

• You underpaid your taxes

• You paid the exact amount

• You didn't pay any taxes

What can be adjusted to avoid owing too much or getting a big refund?

• Form W-4

• Form 1040

• Form 1099

• Form 940

What is the penalty for not filing taxes on time?

• Failure-to-file penalty

• Late payment fee

• Interest charge

• No penalty