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