Chapter 4 - Taxation of
Individuals, Exemptions, and
Filing Status with correct
questions and answers
usr
[COMPANY NAME] [Company address]
, 1. What is Form 1040? Answer: U.S. Individual Income Tax Return
2. Common For AGI deductions Answer: education expenses (tuition and fees),
HSA acct.
student loan interest
deductible retirement acct.
IRA
alimony pre 2019 divorce decree
Rent and royalty
3. Common From AGI deductions Answer: mortgage interest, state income tax, charitable
contributions (out-
side standard deduction to promote charitable giving)
4. Qualified Business Income Deduction Answer: 20% ( not an itemized deduction)
5. Schedule A Answer: The federal tax schedule for itemized deductions
6. What was the tax reform act of 2018 Answer: significantly increased standardized
deduction
7. Form 1040 (Schedule C) Answer: Used to report income or (loss) from a business operated
or a profession
practiced as a sole proprietor
8. What additions can be added to Standardized Deduction Answer: if you are
blind or over 65
9. What is a form 1065 Answer: Form 1065 is an information return filed b partnerships, that
provides detailed
information about partnership income and expense and indicates the amount and type of each partner's
distributive share of income or loss.
10. What is a schedule K1 Answer: a federal tax document used to report the income,
losses, and dividends for a
business' or financial entity's partners or an S corporation's shareholders
11. IRA vs. Roth IRA Answer: Primary is the IRA. The traditional IRA Answer: $5000 investment in
it. You get to deduct that $5,000 from your income taxes. Then the money compounds tax free. You
then pull the money out and then it is taxed then.
2/
8
Individuals, Exemptions, and
Filing Status with correct
questions and answers
usr
[COMPANY NAME] [Company address]
, 1. What is Form 1040? Answer: U.S. Individual Income Tax Return
2. Common For AGI deductions Answer: education expenses (tuition and fees),
HSA acct.
student loan interest
deductible retirement acct.
IRA
alimony pre 2019 divorce decree
Rent and royalty
3. Common From AGI deductions Answer: mortgage interest, state income tax, charitable
contributions (out-
side standard deduction to promote charitable giving)
4. Qualified Business Income Deduction Answer: 20% ( not an itemized deduction)
5. Schedule A Answer: The federal tax schedule for itemized deductions
6. What was the tax reform act of 2018 Answer: significantly increased standardized
deduction
7. Form 1040 (Schedule C) Answer: Used to report income or (loss) from a business operated
or a profession
practiced as a sole proprietor
8. What additions can be added to Standardized Deduction Answer: if you are
blind or over 65
9. What is a form 1065 Answer: Form 1065 is an information return filed b partnerships, that
provides detailed
information about partnership income and expense and indicates the amount and type of each partner's
distributive share of income or loss.
10. What is a schedule K1 Answer: a federal tax document used to report the income,
losses, and dividends for a
business' or financial entity's partners or an S corporation's shareholders
11. IRA vs. Roth IRA Answer: Primary is the IRA. The traditional IRA Answer: $5000 investment in
it. You get to deduct that $5,000 from your income taxes. Then the money compounds tax free. You
then pull the money out and then it is taxed then.
2/
8
