Term
| Every employee should receive a Form W-2, Wage and Tax Statement, from his employer by what date? |
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Definition
| Every employee should receive a Form W-2, Wage and Tax Statement, from his employer by February 1. |
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Term
| TRUE or FALSE: Alimony and separate maintenance payments are included in gross income? |
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Definition
| TRUE. Alimony and separate maintenance payments are included in gross income. |
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Term
| TRUE or FALSE: Certain foster care payments are included in gross income? |
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Definition
| FALSE. Certain foster care payments are NOT included in gross income. |
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Term
| TRUE or FALSE: Certain income from the discharge of indebtedness is included in gross income? |
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Definition
| TRUE and FALSE. Certain income from the discharge of indebtedness is may or may not included in gross income. |
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Term
| TRUE or FALSE: Compensation for personal injuries is included in gross income? |
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Definition
| FALSE. Compensation for personal injuries is NOT included in gross income. |
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Term
| TRUE or FALSE: Compensation for services, including fees, commission, and certain fringe benefits is included in gross income? |
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Definition
| TRUE. Compensation for services, including fees, commission, and certain fringe benefits is included in gross income. |
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Term
| TRUE or FALSE: Disaster relief payments are included in gross income? |
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Definition
| FALSE. Disaster relief payments are NOT included in gross income. |
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Term
| TRUE or FALSE: Distributive share of partnership gross income is included in gross income? |
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Definition
| TRUE. Distributive share of partnership gross income is included in gross income. |
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Term
| TRUE or FALSE: Dividends are included in gross income? |
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Definition
| TRUE. Dividends are included in gross income. |
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Term
| TRUE or FALSE: Federal income tax refunds are included in gross income? |
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Definition
| FALSE. Federal income tax refunds are NOT included in gross income. |
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Term
| TRUE or FALSE: Gains derived from dealings in property are included in gross income? |
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Definition
| TRUE. Gains derived from dealings in property are included in gross income. |
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Term
| TRUE or FALSE: Gifts and inheritances are included in gross income? |
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Definition
| FALSE. Gifts and inheritances are NOT included in gross income. |
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Term
| TRUE or FALSE: Income from an interest in an estate or trust is included in gross income? |
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Definition
| TRUE. Income from an interest in an estate or trust is included in gross income. |
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Term
| TRUE or FALSE: Income from life insurance and endowment contracts is included in gross income? |
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Definition
| TRUE. Income from life insurance and endowment contracts is included in gross income. |
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Term
| TRUE or FALSE: Income in respect of a decendent is included in gross income? |
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Definition
| TRUE. Income in respect of a decendent is included in gross income. |
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Term
| TRUE or FALSE: Interest is included in gross income? |
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Definition
| TRUE. Interest is included in gross income. |
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Term
| TRUE or FALSE: Interest on state and local bonds is included in gross income? |
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Definition
| FALSE. Interest on state and local bonds is NOT included in gross income. |
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Term
| TRUE or FALSE: Life insurance payments, if paid by reason of the death of the insured are included in gross income? |
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Definition
| FALSE. Life insurance payments, if paid by reason of the death of the insured are NOT included in gross income. |
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Term
| TRUE or FALSE: Meals or lodging furnished for the convenience of the employer are included in gross income? |
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Definition
| FALSE. Meals or lodging furnished for the convenience of the employer are NOT included in gross income. |
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Term
| TRUE or FALSE: Net income derived from business is included in gross income? |
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Definition
| TRUE. Net income derived from business is included in gross income. |
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Term
| TRUE or FALSE: Pensions are included in gross income? |
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Definition
| TRUE. Pensions are included in gross income. |
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Term
| TRUE or FALSE: Qualifed scholarships and fellowships are included in gross income? |
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Definition
| FALSE. Qualifed scholarships and fellowships are NOT included in gross income. |
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Term
| TRUE or FALSE: Qualified clergy housing allowances are included in gross income? |
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Definition
| FALSE. Qualified clergy housing allowances are NOT included in gross income. |
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Term
| TRUE or FALSE: Rents are included in gross income? |
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Definition
| TRUE. Rents are included in gross income. |
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Term
| TRUE or FALSE: Royalties are included in gross income? |
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Definition
| TRUE. Royalties are included in gross income. |
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Term
| TRUE or FALSE: The IRS will accept returns with substitute W-2s at any time. |
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Definition
| FALSE. The IRS will not accept returns with substitute W-2s prior to February 15. |
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Term
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Definition
| Tax credits are reductions of tax liability allowed for various purposes to taxpayers who meet the qualifications. Some credits are refundable; that is, the IRS will send the taxpayer a refund for any amount in excess of the tax liability. Some credits are non-refundable, that is, they can only reduce tax liability to zero. Some credits may be carried to other tax years. |
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Term
| What are the two types of gross income? |
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Definition
1. Earned Income
2. Unearned Income |
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Term
| What form is provided to notify the taxpayer of unemployment compensation received? |
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Definition
| If a person received unemployment compensation, they should receive Form 1099-G showing the total amount received during the tax year. |
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Term
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Definition
| Adjusted gross income (AGI) equals gross income less reductions that are allowable, regardless of whether personal deductions are itemized. |
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Term
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Definition
| A Form W-2 is a wage and tax statement. The form is provided to each employee who received payment during the tax year for services perfomred for an employer. |
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Term
| What is adjusted gross income? |
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Definition
| Adjusted gross income (AGI) equals gross income less reductions that are allowable, regardless of whether personal deductions are itemized. |
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Term
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Definition
| An amount ($3650 for 2009) allowed by law as a reduction of income that would otherwise be taxed. |
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Term
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Definition
| Earned income is received for services performed. Some examples are wages, commissions, tips, and, generally farming and other business income. |
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Term
| What is federal income tax withheld? |
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Definition
| Federal income tax withheld is the amount taken out of income by the payer and submitted to the IRS as an advance payment of the taxpayer's federal income tax. |
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Term
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Definition
| Gross income means all world-wide income from whatever source derived, unless specifically excluded from taxation by law. Gross income includes all income realized in any form, whether in money, property, or services. |
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Term
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Definition
| Income is financial gain derived from labor (work), capital (money), or a combination of the two. |
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Term
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Definition
| Tax liability is the amount of total tax due the IRS after any credits and before taking into account any advance payments (withholding, estimated payments, etc) made by the taxpayer. |
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Term
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Definition
| Taxable income is the adjusted gross income less deductions (itemized or standard), less allowable personal and dependent exemption amounts. This term is also used to refer to income that is not exempt or excluded from taxation. |
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Term
| What is the standard deduction? |
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Definition
| The standard deduction is a base amount of income not subject to tax and varies based on the taxpayer's filing status. |
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Term
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Definition
| Unearned income is taxable income that does not meet the definition of earned income. It includes money received for the investment of money or other property, such as interest, dividends, rents, and royalties. It also includes pensions, alimony, unemployment compensation, and other income that is not from performing services. |
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