#1
Which of the following is a direct tax?
Income tax
ExplanationTax levied directly on individuals or businesses.
#2
What is the deadline for filing individual income tax returns in the United States?
April 15th
ExplanationDeadline for most taxpayers, unless extended.
#3
What is the purpose of Form W-9?
To request taxpayer identification number and certification
ExplanationGathers information for tax reporting.
#4
What is the purpose of Form 941?
To report quarterly payroll taxes
ExplanationDetails employer's quarterly tax liabilities.
#5
Which of the following taxes is typically not imposed at the federal level in the United States?
Sales tax
ExplanationImposed by states, not federal government.
#6
Which of the following is considered a tax deduction in the United States?
Interest on student loans
ExplanationAmount subtracted from taxable income.
#7
What is the purpose of Form W-2?
To report wages and salaries earned by an employee
ExplanationSummarizes income earned and taxes withheld.
#8
Which of the following is NOT a type of tax evasion?
Filing taxes early
ExplanationLegal action, not evasion; meeting obligation ahead.
#9
What is the purpose of Form 1099?
To report interest and dividend income
ExplanationRecords various types of income.
#10
Which of the following is NOT a characteristic of a regressive tax system?
Tax burden decreases as income increases
ExplanationOpposite of regressive tax; burden increases with income.
#11
What is the Alternative Minimum Tax (AMT) designed to prevent?
Excessive use of tax credits and deductions
ExplanationEnsures high-income earners pay a minimum tax.
#12
What is the tax rate for long-term capital gains in the United States for most taxpayers?
20%
ExplanationRate applied to profits from investments held long-term.
#13
Which of the following is NOT a tax-deferred retirement account in the United States?
529 plan
ExplanationPlan for education savings, not retirement.
#14
What is the purpose of the Foreign Account Tax Compliance Act (FATCA)?
To prevent tax evasion through offshore accounts
ExplanationTargets undisclosed foreign accounts.
#15
Which of the following is NOT an allowable tax deduction for individuals in the United States?
Credit card interest
ExplanationInterest on personal debt not deductible.