Filing status
A married couple can choose to file two separate tax returns.
Married filing separately
This premium health insurance subsidy that refunds your payments for health insurance premiums.
Premium tax credit (PTC)
Filing your taxes earlier in the year reduces your chances of getting audited.
False; no matter when you file your return, your changes of being audited are the same.
The most misused social security number of all time is 078-05-1120 due to a promotion through Woolworth for wallets in 1938.
Did more or less than 25,000 people report this social security number since 1938?
More; 40,000 people have submitted tax returns using this social security number.
Name the event; the most famous U.S. tax protest happened in December 1773, where colonists dumped 342 chests of tea into the Boston Harbor.
The Boston Tea Party.
In most cases, this status applies if you are not married, but there are some special rules. For example, you must have paid more than half the cost of keeping up a home for yourself and a qualifying person.
Head of household
This credit provides substantial support to low and moderate income working parents, but little support to workers without qualifying children.
Earned income tax credit (EITC)
Mileage driven for volunteer work is tax deductible.
True; any volunteer mileage is deductible
For each $100 collected by the IRS, does it cost taxpayers more or less than $3.00 for them to do this?
Less; each $100 collected costs the IRS about $0.41.
True or false; the Federal Tax Code has more words than The Bible.
True; the bible has 700,000 words, the Federal Tax Code as 3.7 million words.
If you’re married, you and your spouse can file this type of tax return. If your spouse died in 2020, you can often file a joint return for that year.
Married filing jointly
For taxpayers who pay the majority of the care for at least one child under the age of 17.
Child tax credit (CTC)
Gambling losses are deductible on your federal tax return
True; you can deduct a portion of your gambling losses against your gambling winnings.
The error rate for a paper return is 21%.
Is the error rate for an e-filed return more or less than 5%?
Less; the IRS states that the error rate for e-filed returns are 0.5%.
More or less; the IRS is currently sitting on $2 billion in unclaimed tax refunds.
Less; but they are currently sitting on $1.4 billion dollars. Refunds must be claimed within 3 years before they expire.
This status normally applies if you aren’t married. It applies if you are divorced or legally separated under state law.
Single
A tax credit worth up to $14,080 (before phase-outs) in adoption costs per child.
Adoption credit
If you file for a tax extension, your tax payment is delayed as well.
False; tax payments are always due on the date the return is due.
Is the average refund amount for 2013 more or less than $2,500?
More; the IRS issued that among the 118 million tax returns in 2013, the average refund was $2,725.
More or less; 1% of all tax returns are audited.
This status may apply to you if your spouse died during 2018 or 2019 and you have a dependent child. Other conditions also apply.
Qualifying widow(er) with dependent child
Worth up to $2,500 per student and is available for education expenses from your first four years of higher education.
American Opportunity tax credit (AOTC)
There are 7 U.S. states with no personal income tax.
True; these states (Texas, Nevada, Florida, Washington, Alaska, South Dakota, and Wyoming) do not have personal income taxes
Did more or less than 25% of households pay 0% income tax in 2019?
More; according to the IRS, 46.6% of taxpayers paid no income taxes in 2019.
California has the most millionaires with 40,000 Californians reporting over $1 in income.
What northeastern state has the least millionaires?
Vermont; they report less than 300 millionaires.