20. Generally, Form W-4 does not expire. But, if a taxpayer claims which of the following, he or she needs to give his or her a new Form W-4 each year? A. Extra withholding B. Deductions C. Exemption from Federal income tax D. Dependents 21. Emily Smith files her tax return on the basis of a fiscal year. Her records show that she received income in November 2020 and February 2021 from which there was backup withholding ($100 and $50, respectively). Emily takes credit for what amount of backup withholding on her tax return for the fiscal year ending September 30, 2021? A. $0 B. $50 C. $100 D. $150 22. The taxpayer is more likely to need to increase his or her withholding if he or she is married filing jointly and his or her spouse also works. If the taxpayer chooses to increase his or her withholding, he or she should complete the option in Step 2(b) on Form W-4. The taxpayer completes the Multiple Jobs Worksheet on only one Form W-4 to determine withholding. The withholding amount will be most accurate if, after completing the worksheet, the taxpayer enters the result in which of the following ways on Form W-4? A. Divided equally and entered on both taxpayers' Form W-4 B. Entered on the taxpayer's Form W-4 with the highest paying job C. Entered on the taxpayer's Form W-4 with the lowest paying job D. Omitted on the taxpayer's Form W-4 and included in estimated taxes 23. Generally, pension and annuity payments are subject to Federal income tax withholding. However, there is no withholding on any part of a distribution that: A. Is not expected to be includible in the recipient's gross income B. Is the taxable part of payments from an employer pension annuity C. Is the taxable part of payments from an endowment D. Is a payment from an individual retirement arrangement (IRA) 24. Which of the following statements regarding tip income is true? A. If the taxpayer is an indirectly tipped employee (for example, a busser or bartender) he or she is not required to report tips to an employer B. Any tips the taxpayer reported to an employer are to be included in the wages in box 1 (Wages, tips, other compensation) of his or her Form W-2 C. If the only tips a taxpayer receives in a month are charged tips (for example, credit and debit card charges) distributed to him or her by an employer, he or she is not required to report these tips to the employer D. If the only tips a taxpayer receives in a month are cash tips, he or she is not required to report these tips to the employer 25. A Form W-9 - Request for Taxpayer Identification Number and Certification is a formal written request for information only and is used solely for the purpose of confirming which of the following? A. Taxpayer identification number (TIN) B. Backup withholding amount C. Extra withholding amount D. Exemption from withholding 26. All of the following are true regarding the 1099 series forms except: A. Most forms in the 1099 series are not filed with the return B. Most forms in the 1099 series should be furnished to the taxpayer by January 31 C. Any individual who makes reportable transactions, such as paying dividends during the calendar year must file 1099 series forms to report those transactions to the IRS D. Estates and trusts that make reportable transactions during the calendar year are not required to file 1099 series forms