Question 1

What is a tax deduction?

Accepted Answer

An expense that reduces taxable income

Answer

A fee imposed by the government

Answer

An investment that generates tax credits

Answer

Unexpected payment of taxes

Question 2

What is the deadline for filing federal income taxes in the United States?

Accepted Answer

April 15th

Answer

May 1st

Answer

March 31st

Answer

January 1st

Question 3

What is a W-2 form?

Accepted Answer

A form that reports an employee's annual wages and the amount of taxes withheld from their paycheck

Answer

A form to report self-employment income

Answer

A form to request a tax refund

Answer

A form to apply for a job

Question 4

What is the purpose of an IRS Form 1040?

Accepted Answer

To report individual income tax returns

Answer

To calculate sales tax

Answer

To apply for a business license

Answer

To submit payroll taxes

Question 5

What is a tax credit?

Accepted Answer

A dollar-for-dollar reduction in the amount of tax owed

Answer

An extra fee added to your tax bill

Answer

A penalty for late tax payment

Answer

A type of tax deduction

Question 6

What is the standard deduction?

Accepted Answer

A fixed amount that reduces taxable income

Answer

An additional tax payment owed to the government

Answer

An exemption for dependent children

Answer

A penalty for filing taxes late

Question 7

What does the term 'taxable income' refer to?

Accepted Answer

The amount of income subject to taxation after deductions and exemptions

Answer

The total amount of income earned in a year

Answer

The amount of income earned before any deductions are applied

Answer

The amount of income earned from investments

Question 8

What is the difference between a tax credit and a tax deduction?

Accepted Answer

A tax credit directly reduces the amount of tax owed, while a tax deduction reduces taxable income.

Answer

A tax credit reduces taxable income, while a tax deduction directly reduces the amount of tax owed.

Answer

A tax credit and a tax deduction are the same thing.

Answer

A tax credit is for individuals, while a tax deduction is for businesses.

Question 9

What is a tax refund?

Accepted Answer

Money returned to a taxpayer when the tax amount paid exceeds their tax liability

Answer

Additional tax owed to the government

Answer

A penalty for underpaying taxes

Answer

An exemption from paying taxes

Question 10

What is the purpose of Form W-4?

Accepted Answer

To determine the amount of income tax to be withheld from an employee's paycheck

Answer

To request a tax refund

Answer

To report self-employment income

Answer

To apply for a loan

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