Which of the following is the name of the income statement you should receive from your employer?
If you work for someone else, your employer is obligated to send you a W-2 statement listing the total amount of money you were paid in the tax year, minus any withheld taxes.
True or false: Tips are not recorded as income on W-2 statements.
That's definitely false. Tips count as income and are recorded in box 1, titled "Wages, tips, other compensation."
Which of the following is NOT an acceptable identification number for filing individual income taxes?
You need to have either a Social Security number or an ITIN to file a tax return.
Which of the following people qualifies for a Social Security number?
Many non-U.S. citizens don't qualify for a Social Security number, regardless of immigration status. But they can apply for an individual taxpayer identification number (ITIN) to file a tax return.
True or false: Income earned from a foreign company is not taxable by the Internal Revenue Service (IRS).
Nice try, but the Internal Revenue Service (IRS) taxes all foreign income, unless you're a "bona fide resident" of a foreign country, which qualifies you for a foreign earned income exclusion.
For a divorced couple with children, who is allowed to claim the children as dependents?
Only the custodial parent can claim a child as a dependent, unless the custodial parent releases that right to the divorced spouse.
Which of the following income sources is NOT considered unearned income?
if you receive long-term disability benefits before the minimum retirement age, those count as earned income.
In which of the following situations would the taxpayers owe income tax on Social Security benefits?
Married joint filers who make more than $44,000 will definitely owe income tax on Social Security benefits, but $32,000 is the minimum income required for taxation. Social Security benefits aren't taxed if a person has no other income.
What is the maximum percentage of Social Security benefits that the Internal Revenue Service (IRS) can tax?
Yup, the Feds can tax up to 85 percent of your Social Security benefits. Remind us, where did this money come from in the first place?
True or False: You can deduct the money you paid to prepare last year's taxes from your taxable income.
Yes, you can legally deduct the money you paid last year to your tax preparer from this year's taxable income.
What is the maximum amount you can claim for a non-cash charitable donation without getting the item appraised?
$5,000 sounds like a high limit, but what's really amazing is that the Internal Revenue Service (IRS) only requires that you physically attach an appraisal for contributions over $500,000.
The IRS allows taxpayers to deduct how much money per mile for the business use of their vehicle?
To get that 55.5 cents per mile, you'll have to supply odometer readings. You can also deduct mileage if you use your vehicle for moving or for charitable purposes, although those rates are lower.
What is the amount of the 2011 standard deduction for married joint taxpayers?
If you believe you can prove expenses totaling more than $11,600, then it would be smart to itemize deductions with your tax preparer.
True or false: Acupuncture, abortion and wigs are all included in the list of qualified medical expenses.
The IRS also allows you to deduct expenses from a visit to a Christian Science practitioner.
Which of the following is NOT a qualifying expense for an itemized deduction?
The Internal Revenue Service allows you to deduct interest paid on residential loans and investment interest, but not interest accrued on loans for personal use, which includes most credit card interest.
People who live in a federally designated disaster area are allowed to take special deductions for property loss, clean-up and rebuilding costs. How many "major disaster declarations" did FEMA make in 2011?
Flooding and other damage from hurricane Irene was responsible for disaster areas in 10 states and Puerto Rico.
True or False: To take a deduction on a theft of property or money, you have to provide proof of a conviction.
You don't have to provide proof or arrest or conviction, but you do need to prove ownership and provide information on when the property or money was taken.
In 2008 (the most recent year for statistics), what percentage of income tax filers used a paid tax preparer?
You're not alone. More than half of U.S. taxpayers believe that a paid tax preparer can help them maximize deductions while avoiding an audit.
In 2011, what percentage of American taxpayers received a tax refund?
If you're among the lucky 77 percent this year, you should bring your bank account information to the tax preparer's office so the Internal Revenue Service can make a direct refund deposit into your account.
Which of the following forms of payment is NOT accepted by the Internal Revenue Service (IRS) when filing your tax return?
You can "direct debit" from your bank account by supplying your checking or savings account information, but you can't pay with simply a debit card number.
Don't show up to the tax preparer's office empty-handed. Take our quiz to find out what documents, tax forms, receipts and IDs you'll need before tax day.
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