Writing it Off: Test Your Income Tax Knowledge
Whether you're a tax whiz or you farm your return out to the professionals, it's good to know a bit about how to file your taxes. Test your income tax know-how in this quiz.
What is Adjusted Gross Income?
- your after-tax income
- your taxable income after deductions
- your taxable income before deductions
What is a progressive income tax system?
- a tax system that allows deductions on investments
- a tax system that taxes higher income at higher rates and lower income at lower rates
- a tax system that gets better as time goes on
Which of the following doesn't count as an itemized deduction on your income tax?
- the cost of utilities like water and gas
- theft losses
- gambling losses
Which of the following isn't a good reason to file a tax amendment?
- You made a mathematical error.
- You put down the wrong filing status.
- You forgot to count someone as a dependent.
Which form tells your employer all they need to know about your tax-related allowance information?
It was unconstitutional for the U.S. government to levy an income tax before the passage of which amendment?
- 14th Amendment
- 16th Amendment
- 18th Amendment
The proposed Fair Tax would change the U.S. tax system and instead:
- institute a national sales tax
- institute a single income tax rate for all taxpayers
- would only tax the rich
Which of the following may increase your chances of getting audited?
- a clean and clearly filled out tax return
- a mathematical mistake on your tax return
- sending explanatory notes and receipts before the IRS asks for them
If you sell your old Chevrolet for more than you paid, the profit is subject to:
- no taxation
- capital gains tax
- seller's tax
Which of the following is not a way to lower the amount you pay in capital gains taxes?
- deducting capital losses from your capital gains
- taking advantage of short-term rather than long-term investments
- taking advantage of long-term rather than short-term investments
What is the “three of five” test?
- a test to ensure your small business is legit
- a test to avoid paying taxes
- a test to find deductions
Which of the following are NOT needed at the tax preparer’s office?
- medical expenses
- rental agreement/lease
What is the deadline for filing tax forms?
- April 1
- April 15
- April 30
What year was the Office of Commissioner of Internal Revenue established?
What does IRS stand for?
- International Revenue Service
- Internal Revenue Service
- Income Revenue Service
How many tax brackets are used in the United States?
What form do you use to file for an extension?
Which of the following is NOT an itemized deduction that can be included in your taxes?
- state and local income or sales tax paid
- tax penalties
What is a flat tax?
- a tax percentage that depends on how much money you make.
- a national sales tax
- fixed percentage of income
How many states in the United States that do not have an individual income tax?