1. An individual who expects to receive more than $250 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

Group of answer choices

True

False

2. Mark the incorrect answer. Estimated income tax payments

Group of answer choices

A. Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000.

B. If they are inadequate, may result in nondeductible penalties

C. May be based on the amount of the tax liability for the prior year

D. Are made in four installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year.

3. Only self-employed individuals are required to make estimated tax payments.

Group of answer choices

True

False

4. A nondeductible penalty is imposed on underpayments of estimated taxes.

Group of answer choices

True

False

5. The IRS charges a fixed 10% interest rate on underpayments of taxes.

Group of answer choices

True

False

6.

An Extension of Time to File also allows a taxpayer an additonal amount of time to pay without any penalty.

Group of answer choices

True

False

7. The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income.

Group of answer choices

True

False

8. A marriage penalty occurs when a couple pays more taxes by filing a joint tax return than they would have paid had they filed married filing separate returns.

Group of answer choices

True

False

9. Generally, income from an active trade or business is subject to the 3.8% net investment income tax.

Group of answer choices

True

False

10. The kiddie tax does not apply to children over 24 years old at the end of the tax year.

Group of answer choices

True

False

11. Katlyn reported $300 of net income from her sole proprietorship. She is not required to pay self-employment tax.

Group of answer choices

True

False

12. An individual could pay 100% of her tax liability by the due date of her tax return and still be subject to underpayment tax penalties.

Group of answer choices

True

False

13. The taxable income levels in the married filing jointly tax rate schedule are ________ those in the married filing separately schedule.

Group of answer choices

A. double

B. the same as

C. half the amount of

D. none of the choices are correct

14. Which of the following is not true of the extension to file an individual tax return?

Group of answer choices

A. It is granted automatically by the IRS if requested

B. It must be requested by the original due date of the return

C. It extends the due date for the return and associated tax payments beyond the original due date of the tax return

D. The extension is for six months beyond the original due date

15. What is the underpayment penalty rate that taxpayers pay when they underpay their estimated taxes?

Group of answer choices

A. Federal short-term interest rate

B. Federal short-term interest rate plus 3 percentage points

C. Federal long-term interest rate plus 6 percentage points

D. Zero. The government does not pay interest on overpayments

16. An individual could pay 100 percent of her tax liability by the due date of her tax return and still be subject to underpayment tax penalties.

Group of answer choices

true

false

17. The late payment penalty is based on the amount of tax owed and the number of days that the tax is not paid. The maximum amount of the penalty is unlimited.

Group of answer choices

true

false