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Federal Taxation and Credits for Individuals Quiz

#1

What is the filing status for an unmarried individual with no dependents?

Single
Explanation

Filing status for unmarried individuals with no dependents.

#2

Which form is used to report wages, salaries, tips, and other income?

Form W-2
Explanation

Form for reporting various types of income including wages, salaries, and tips.

#3

What is the purpose of Form W-4?

To determine the amount of federal income tax to withhold from an employee's paycheck
Explanation

Form for determining federal income tax withholding from an employee's paycheck; Form W-4.

#4

Which of the following is a tax credit available to help offset the cost of higher education expenses?

Lifetime Learning Credit
Explanation

Tax credit for higher education expenses; Lifetime Learning Credit.

#5

What is the standard deduction for a single taxpayer for the tax year 2023?

$18,800
Explanation

Standard deduction amount for single taxpayers in the tax year 2023.

#6

Which of the following is NOT a refundable tax credit?

Lifetime Learning Credit
Explanation

Non-refundable tax credit; Lifetime Learning Credit.

#7

Which of the following is considered a qualified medical expense for the purpose of Health Savings Accounts (HSAs)?

Prescription drugs
Explanation

Qualified medical expense for HSAs; Prescription drugs.

#8

What is the maximum contribution limit for a Health Savings Account (HSA) for an individual in 2023?

$3,600
Explanation

Maximum contribution limit for an individual's HSA in 2023.

#9

What is the maximum contribution limit for an individual retirement account (IRA) for the tax year 2023?

$6,000
Explanation

Maximum contribution limit for an IRA in the tax year 2023.

#10

What is the penalty for failing to file a tax return by the due date?

10% of the unpaid tax
Explanation

Penalty for late tax return filing; 10% of the unpaid tax.

#11

Which tax credit allows taxpayers to reduce their federal income tax liability for qualified expenses related to the adoption of a child?

Adoption Tax Credit
Explanation

Tax credit for adoption-related expenses; Adoption Tax Credit.

#12

What is the additional tax rate applied to income above a certain threshold for high-income taxpayers?

37%
Explanation

Additional tax rate for high-income taxpayers; 37%.

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