Name: ______
Taxes- Chapter 7 Outline- Pg 141-152, Part 1
1. Give an example of each of the following taxes.
a. Progressive tax-
b. Regressive tax-
c. Proportional tax-
2. What three things can be done from the IRS website?
a. b.
c.
3. List the 5 filing status choices available.
a. b.
c. d.
e.
4. List three types of incomes that are not taxable.
a. b.
c.
5. What do you have to do to get the tax benefits of deductions?
6. List 4 common deductible expenses.
a. b.
c. d.
7. For what reason would you chose to take the standard deduction instead of itemizing?
8. List three allowable tax credits
a. b.
c.
9. What are the three reasons why you would have to file a tax return?
a. b.
c.
10. What is the tax deadline date?
11. What happens if you file your return late?
12. How long should you save your tax records?
(over)
Part 2: Solving problems- Use tax table on pg 158
Question #1- Use the attached 1040EZ form and file a tax return for Tomeka Hunt- pg. 171 #1
Tomeka M. Hunt, 54 Center Street, San Francisco, CA 96214-3627. Her social security number is 541-33-9892. Tomeka is a part-time engineer. She wants $3 to go to the Presidential Election Campaign Fund. She is single and claims only herself as an exemption. Tomeka’s salary is $16,200, plus interest of $155. No one else claims her as a dependent, and she had $3,660 in federal taxes withheld.
Question #2- Use attached 1040 EZ form for Ronald B. Mitchell
Ronald B. Mitchell, 218 SW 82nd Avenue, Portland, Oregon 97262-8645. His social security number is 881-49-3833. Ronald works part-time while attending college but is not being claimed on another person’s return. He earned $10,000 in salary and $450 in tips (shown on W-2). He is single and claims himself as an exemption. He earns $200 interest from savings and show $400 withheld in federal taxes on his W-2. He does not wish to give $3 to the campaign fund.