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Doing Your Taxes!

For James Madison University BUS 200 Personal Finance class.


Watch the following videos and answer the questions below the videos.


1. How to File Taxes - Introduction



1. What is the purpose of taxes?

a) To show how much money we have earned

b) To pay for government expenses

c) To get a refund from the IRS

d) All of the above


2. What forms do you need to gather in order to file your taxes?

a) W-2 form

b) 1099-MISC form

c) 1099-INT form

d) All of the above


3. What form is used to report income received by independent contractors and others who are self-employed?

a) W-2 form

b) 1099-MISC form

c) 1099-INT form

d) 1099-DIV form


4. What form is used to report interest income received from banks, savings and loans, and other financial institutions?

a) W-2 form

b) 1099-MISC form

c) 1099-INT form

d) 1099-DIV form


5. What form is used to report dividends and capital gains distributions received from stocks, mutual funds, and other investments?

a) W-2 form

b) 1099-MISC form

c) 1099-INT form

d) 1099-DIV form


6. What form is used to report interest paid on a qualified student loan?

a) W-2 form

b) 1099-MISC form

c) 1098E form

d) 1099-INT form


7. What is the most common tax filing status for individuals who are unmarried or legally separated on the last day of the year?

a) Single

b) Married Filing Jointly

c) Head of Household

d) Dependent


8. What tax filing status is for married couples who choose to file a joint tax return?

a) Single

b) Married Filing Jointly

c) Head of Household

d) Dependent


9. What tax filing status is for individuals who are unmarried or considered unmarried on the last day of the year, and who have a qualifying person living with them for more than half the year?

a) Single

b) Married Filing Jointly

c) Head of Household

d) Dependent

10. What are some options available to prepare taxes?

a) Tax preparation software

b) Hiring a tax professional

c) Doing it yourself

d) All of the above


2. Completing the Federal Tax form


1. What is Form 1040?

a) A form used to calculate only one's tax refund for the year

b) A federal income tax form used to report income and claim tax deductions or credits to the IRS

c) A form used to report business income

d) None of the above


2. What is the purpose of Form 1040?

a) To report income and claim tax deductions or credits to the IRS

b) To calculate one's tax refund or bill for the year

c) To calculate the taxes you owe, also known as your tax liability

d) All of the above


3. How can you complete the Form 1040?

a) E-filing online

b) Using tax software

c) Downloading the form from the IRS website and completing it by hand

d) All of the above


4. What is taxable income?

a) The amount of income that is not subject to income taxes

b) The amount of money you owe in taxes

c) The amount of income that is subject to income taxes

d) None of the above


5. What information is needed on the top of page one of the Form 1040?

a) Personal information such as name, address, social security number, tax-filing status, and number of tax dependents

b) Income information

c) Tax liability

d) All of the above


6. What is a tax dependent?

a) A person who qualifies for a dependency exemption on a taxpayer's federal income tax return

b) A person who can claim a tax credit

c) A person who has already paid taxes via withholding from paychecks

d) None of the above


7. What is the purpose of page two of the Form 1040?

a) To calculate the taxes you owe, also known as your tax liability

b) To calculate your taxable income

c) To determine your tax bill or refund

d) None of the above


8. If you had multiple sources of income, what forms might you have to report it under?

a) W2 and 1099

b) 1040 and 1099

c) W2 and 1040

d) None of the above


9. How can you reduce your tax liability?

a) By subtracting any tax credits you may be eligible for

b) By paying taxes via withholding from paychecks throughout the year

c) By claiming tax dependents

d) All of the above


10. What does the Form 1040 help you determine?

a) Your tax refund or bill for the year

b) Whether tax credits or withholding taxes covered your tax bill

c) Both a and b

d) None of the above

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