1. What is Adjusted Gross Income?
a) your after-tax income
b) your taxable income after deductions
c) your taxable income before deductions
The correct answer is c) your taxable income before deductions
2. Which of the following does not count as an itemized deduction on your income tax?
a) the cost of utilities like water and gas
b) theft losses
c) gambling losses
The correct answer is a) the cost of utilities like water and gas
3. Which of the following isn't a good reason to file a tax amendment?
a) you made a mathematical error
b) you put down the wrong filing status
c) you forgot to count someone as a dependent
The correct answer is a) you made a mathematical error
4. Which form tells your employer all they need to know about your tax-related allowance information?
a) W-2
b) W-4
c) W-10
The correct answer is b) W-4
5. It was unconstitutional for the U.S. government to levy an income tax before the passage of which amendment?
a) 14th Amendment
b) 16th Amendment
c) 18th Amendment
The correct answer is b) 16th Amendment
6. The proposed FairTax would change the U.S. tax system and instead:
a) institute a national sales tax
b) institute a single income tax rate for all taxpayers
c) would only tax the rich
The correct answer is a) institute a national sales tax
7. Which of the following may increase your chances of getting audited?
a) a clean and clearly filled out tax return
b) a mathematical mistake on your tax return
c) sending explanatory notes and receipts before the IRS asks for them
The correct answer is b) a mathematical mistake on your tax return
8. If you sell your old Chevrolet for more than you paid, the profit is subject to:
a) no taxation
b) capital gains tax
c) seller's tax
The correct answer is b) capital gains tax
9. Which of the following is not a way to lower the amount you pay in capital gains taxes?
a) deducting capital losses from your capital gains
b) taking advantage of short-term rather than long-term investments
c) taking advantage of long-term rather than short-term investments
The correct answer is b) taking advantage of short-term rather than long-term investments
General Awareness: Income Tax Quiz
General Knowledge Quiz. Test your general knowledge and general awareness with our questions and answers on Jagranjosh.com. Multiple choice format with a difficulty level of medium.
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