- 1. Tax law refers to the legal rules that govern the assessment and collection of taxes by government authorities. It encompasses a wide range of regulations that dictate how individuals and organizations are required to report their income, deductions, and credits, as well as how taxes are calculated and paid. Tax law also covers the guidelines for tax planning strategies, compliance with tax regulations, and resolving disputes with tax authorities. Understanding tax law is essential for individuals and businesses to ensure compliance and minimize their tax liabilities.
What is the deadline for filing individual federal income tax returns in the United States?
A) April 15
B) May 1
C) March 31
D) June 30
- 2. What type of tax is imposed on assets transferred from a deceased person to their heirs?
A) Property tax
B) Income tax
C) Sales tax
D) Estate tax
- 3. Which of the following is NOT a type of tax-exempt organization under the IRS code?
A) 501(c)(4) organization
B) For-profit corporation
C) 501(c)(3) organization
D) 501(c)(6) organization
- 4. Which tax form is used to request an extension for filing an individual tax return?
A) Form W-4
B) Form 4868
C) Form 1040-X
D) Form 4506-T
- 5. What is the maximum amount of mortgage debt that can be deducted as of 2021?
A) $750,000
B) $500,000
C) $2,000,000
D) $1,000,000
- 6. Which type of tax is calculated as a percentage of the value of property?
A) Excise tax
B) Import tax
C) Flat tax
D) Ad valorem tax
- 7. Which of the following is a refundable tax credit?
A) American Opportunity Tax Credit
B) Earned Income Tax Credit
C) Child Tax Credit
D) Saver's Credit
- 8. What is the standard deduction for a single filer in 2021?
A) $20,000
B) $10,000
C) $12,550
D) $15,000
- 9. What is the term for an amount subtracted directly from the amount of tax owed?
A) Tax penalty
B) Tax liability
C) Tax deduction
D) Tax credit
- 10. What type of tax is imposed on goods and services at the point of sale?
A) Income tax
B) Sales tax
C) Excise tax
D) Property tax
- 11. At what age can an individual start taking penalty-free distributions from a traditional IRA?
A) 59½
B) 60
C) 55
D) 65
- 12. Which type of tax is levied on consumer goods like alcohol, tobacco, and gasoline?
A) Property tax
B) Excise tax
C) Income tax
D) Sales tax
- 13. What tax form is used to report capital gains and losses?
A) Form 8965
B) Form 8857
C) Form 4684
D) Schedule D
- 14. What is the penalty for not filing a federal tax return by the deadline?
A) Late Payment Penalty
B) Failure to File Penalty
C) Tax Evasion Charge
D) Audit Fee
- 15. What is the penalty for withdrawing funds from a traditional IRA before the age of 59 ½?
A) Interest Bonus
B) Early Withdrawal Penalty
C) Tax Refund
D) Disbursement Fee
- 16. What is the penalty for not paying federal taxes owed by the deadline?
A) Penalty Abatement
B) Tax Audit
C) Interest Fee
D) Late Payment Penalty
- 17. Which filing status is for unmarried individuals who provide a home for a qualifying person?
A) Married Filing Jointly
B) Widow(er) with Dependent Child
C) Head of Household
D) Single
- 18. Which of the following is a tax-exempt investment account for education expenses?
A) Roth IRA
B) HSA (Health Savings Account)
C) 401(k)
D) 529 Plan
- 19. What is the tax-advantaged account where individuals can save for medical expenses?
A) HSA (Health Savings Account)
B) 529 Plan
C) 401(k)
D) Roth IRA
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