Intuit Tax 1 : Questions With Correct
Solutions (100%)
Anwar calculated his tax liability as $72,600. He has a tax credit of
$1,200. What is his remaining balance?
$71,400
The earned income tax credit is for which workers:
Workers with low to moderate income. The earned income tax credit is for
workers with low to moderate income. For 2022, the earned income credit
ranges from $560 to $6,935 depending on filing status, number of
children, and earned income.
There is a tax credit that covers higher education expenses (for those that
qualify).
True This is true. Credit for qualified education expenses paid for eligible
students for the first four years of higher education up to $2,500 per
eligible student.
Under which of the following circumstances does your employer need to
file a W-2 form?
You are paid a salary in return for your services.
Correctly checked
,You received a non-cash payment of $700 from the employer.
Correctly checked
Medicare tax is withheld from your paychecks.
Correctly checked
You are related to the employer and receive a salary.
Your filing status impacts your tax bracket, credits, standard or itemized
deductions.
True
Look at the W-2 form below and answer the following question.
In Box 6, your employer reports the amount withheld for Medicare tax.
What is the base Medicare withholding rate?
1.45%
Ahmed and his wife Benita work for different companies. In 2022, Ahmed
earned $89,000 and Benita earned $170,000. They jointly contribute
$12,500 to charity every year and have no other itemized deductions. They
have 3 kids ages 9, 6, and 2. They file taxes jointly. The standard deduction
for a married, filing joint for the year is $25,900.
Assuming the couple have no other income and no above-the-line
deductions, what is their taxable income?
233,100
Will and his spouse Gracie work for different companies. In 2020, Will
earned $58,000 and Gracie earned $45,000. They jointly contribute
,$2,500 to charity every year and they have no other itemized deductions.
They have 1 child, age 5.
What status should they file under to earn the maximum deduction?
Married, filing jointly
Muriel made a contribution to her IRA and paid her property taxes.
How would these deductions be treated on her tax return?
The IRA deduction is above the line and property tax is below the line.
What is the difference between a tax credit and a tax deduction?
Tax deductions reduce taxable income and tax credits reduce the amount
of tax due.
Form 1040
The IRS Form 1040 is one of the official documents that U.S. taxpayers
use to file their annual income tax returns. Form 1040 is divided into
sections where taxpayers report their income and deductions to
determine the amount of tax they owe or the refund they can expect to
receive. Depending on the type of income you report, it may be necessary
to attach additional schedules and forms. Form 1040 is the standard
Internal Revenue Service (IRS) form that individual taxpayers use to file
their annual income tax returns. The form contains sections that require
taxpayers to disclose their taxable income for the year to determine
whether additional taxes are owed or whether the filer will receive a tax
refund.
, How many versions of Form 1040 are there?
4 There are now four variations of the 1040 form (1040A and 1040EZ no
longer exist):
Form 1040: This is the one the majority of taxpayers will use to report
income and determine their tax for the year and any refund or additional
tax owed.
Form 1040-SR: This version is for senior taxpayers (age 65 and older).
Form 1040-SR is nearly identical to Form 1040, but is printed using a
larger font and includes a chart for determining the taxpayer's standard
deduction.
Form 1040-NR: This form is for non-U.S. citizens who do not hold a green
card, and it is several pages longer than the other 1040 form versions.
Form 1040-X: This form is for taxpayers who need to make amendments
to their tax return after previously filing a Form 1040.
Form 1040
Form 1040 is what individual taxpayers use to file their taxes with the IRS.
The form determines if additional taxes are due or if the taxpayer will
receive a tax refund.
Personal information, such as name, address, Social Security number,
and the number of dependents, are asked for on Form 1040.
A taxpayer needs to report wages, salary, taxable interest, capital gains,
pensions, Social Security benefits, and other types of income.
Taxpayers may need to file supplemental schedules and forms with their
Form 1040 based on their specific tax situation.
How many versions of Form 1040 are there?
Solutions (100%)
Anwar calculated his tax liability as $72,600. He has a tax credit of
$1,200. What is his remaining balance?
$71,400
The earned income tax credit is for which workers:
Workers with low to moderate income. The earned income tax credit is for
workers with low to moderate income. For 2022, the earned income credit
ranges from $560 to $6,935 depending on filing status, number of
children, and earned income.
There is a tax credit that covers higher education expenses (for those that
qualify).
True This is true. Credit for qualified education expenses paid for eligible
students for the first four years of higher education up to $2,500 per
eligible student.
Under which of the following circumstances does your employer need to
file a W-2 form?
You are paid a salary in return for your services.
Correctly checked
,You received a non-cash payment of $700 from the employer.
Correctly checked
Medicare tax is withheld from your paychecks.
Correctly checked
You are related to the employer and receive a salary.
Your filing status impacts your tax bracket, credits, standard or itemized
deductions.
True
Look at the W-2 form below and answer the following question.
In Box 6, your employer reports the amount withheld for Medicare tax.
What is the base Medicare withholding rate?
1.45%
Ahmed and his wife Benita work for different companies. In 2022, Ahmed
earned $89,000 and Benita earned $170,000. They jointly contribute
$12,500 to charity every year and have no other itemized deductions. They
have 3 kids ages 9, 6, and 2. They file taxes jointly. The standard deduction
for a married, filing joint for the year is $25,900.
Assuming the couple have no other income and no above-the-line
deductions, what is their taxable income?
233,100
Will and his spouse Gracie work for different companies. In 2020, Will
earned $58,000 and Gracie earned $45,000. They jointly contribute
,$2,500 to charity every year and they have no other itemized deductions.
They have 1 child, age 5.
What status should they file under to earn the maximum deduction?
Married, filing jointly
Muriel made a contribution to her IRA and paid her property taxes.
How would these deductions be treated on her tax return?
The IRA deduction is above the line and property tax is below the line.
What is the difference between a tax credit and a tax deduction?
Tax deductions reduce taxable income and tax credits reduce the amount
of tax due.
Form 1040
The IRS Form 1040 is one of the official documents that U.S. taxpayers
use to file their annual income tax returns. Form 1040 is divided into
sections where taxpayers report their income and deductions to
determine the amount of tax they owe or the refund they can expect to
receive. Depending on the type of income you report, it may be necessary
to attach additional schedules and forms. Form 1040 is the standard
Internal Revenue Service (IRS) form that individual taxpayers use to file
their annual income tax returns. The form contains sections that require
taxpayers to disclose their taxable income for the year to determine
whether additional taxes are owed or whether the filer will receive a tax
refund.
, How many versions of Form 1040 are there?
4 There are now four variations of the 1040 form (1040A and 1040EZ no
longer exist):
Form 1040: This is the one the majority of taxpayers will use to report
income and determine their tax for the year and any refund or additional
tax owed.
Form 1040-SR: This version is for senior taxpayers (age 65 and older).
Form 1040-SR is nearly identical to Form 1040, but is printed using a
larger font and includes a chart for determining the taxpayer's standard
deduction.
Form 1040-NR: This form is for non-U.S. citizens who do not hold a green
card, and it is several pages longer than the other 1040 form versions.
Form 1040-X: This form is for taxpayers who need to make amendments
to their tax return after previously filing a Form 1040.
Form 1040
Form 1040 is what individual taxpayers use to file their taxes with the IRS.
The form determines if additional taxes are due or if the taxpayer will
receive a tax refund.
Personal information, such as name, address, Social Security number,
and the number of dependents, are asked for on Form 1040.
A taxpayer needs to report wages, salary, taxable interest, capital gains,
pensions, Social Security benefits, and other types of income.
Taxpayers may need to file supplemental schedules and forms with their
Form 1040 based on their specific tax situation.
How many versions of Form 1040 are there?
