Comprehensive Test No. 3

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| By Lojones
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| Questions: 14
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1. If you receive benefits from a health-care plan provided to you by your employer are any of the benefits received ever taxable?

Explanation

Publication 17; Page 48

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About This Quiz
Comprehensive Test No. 3 - Quiz

COMPREHENSIVE TEST NO. 3 assesses knowledge on employee compensation and tax reporting, focusing on Form W-2, taxable benefits, and disability payments. It is crucial for understanding employer-employee tax... see moreresponsibilities. see less

2. Generally, any interest you receive or that is credited to your account is taxable. Whatform(s) could you possibly receive showing the amount of taxable interest that was credited to an account or received by you during 2014?

Explanation

Publication 17; Page 57

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3. True or False: Dividends are distributions of money, stock, stock rights, other property or services paid to you by a corporation, mutual fund, a partnership, an estate, a trust or an association that is taxed as a corporation.

Explanation

Publication 17; Page 64

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4. What form is used by most corporations and mutual funds to show you the dividends and distributions you received during the year?

Explanation

Publication 17; Page 64

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5. True or False: A client of yours works for a large corporation that is not a public utility company, and the dividends that are credited to him are not paid to him in cash. Rather, they are used automatically by the company to buy additional shares of stock in the company at fair market value. In others words, they are "reinvested". Even though your client does not receive the cash, he is still required to include them on his return in the year credited since they were reinvested.

Explanation

Publication 17; Page 66

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6. True or False: If you perform services other than as an independent contractor, your employer should send you Form W-2 showing the pay you received for your services. Report your pay on line 2 of Form 1040 or 1040A, or line 1 of Form 1040EZ, even if you did not receive a Form W-2.

Explanation

Publication 17; Page 46

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7. You have been an employee of a large corporation for a number of years. You now have an excellent health-care package where your employer pays $350 per month ($4200 per year) toward your health-care plan. How much of the $4200 that your employer paid (considered to be the value of the health-care plan for the tax year) would be included in your income as additional wages for the current tax year?

Explanation

Publication 17; Page 48

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8. If you retired on disability, payments you receive under a plan that is paid for by your employer are taxed as wages until you reach minimum retirement age. These taxable disability payments are reported on line 7 of Form 1040 or Form 1040A until that time. What, generally, is minimum retirement age?

Explanation

Publication 17; Page 52

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9. On what line of Form 1040 would you report taxable disability payments you received during 2014 for amounts you received from the day after you reached minimum retirement age?

Explanation

Publication 17; Page 52

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10. True or False: Allocated tips are tips that your employer will assign to you in addition to the tips you reported for the year if you 1) worked in an establishment that must allocate tips to employees and 2) the tips you reported to your employer were less than your share of 8% of food and drink sales.

Explanation

Publication 17; Page 56

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11. True or False: You must report all cash, check, and debit and credit card tips you received to your employer.

Explanation

Publication 17; Page 55

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12. Check the situation(s) below that would generally require the recipient to include the amount of money or value s/he receives in his/her gross income for federal income tax purposes at the time paid or contributed.

Explanation

Publication 17; Pages 46-66

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13. CHOOSE THE CORRECT ANSWER: What is Form 4137 (Social Security and Medicare Tax on Unreported Tip Income) used for?

Explanation

Publication 17; Page 55

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14. Form W-2, Wage and Tax Statement, is given to employees by their employer showing the pay received for services as well as other items. Check the item(s) below that could also be included on an employee's Form W-2.

Explanation

Publication 17; Pages 46-66

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If you receive benefits from a health-care plan provided to...
Generally, any interest you receive or that is credited to your...
True or False: Dividends are distributions of money, stock, stock...
What form is used by most corporations and mutual funds to show you...
True or False: A client of yours works for a large corporation that is...
True or False: If you perform services other than as an independent...
You have been an employee of a large corporation for a number of...
If you retired on disability, payments you receive under a plan that...
On what line of Form 1040 would you report taxable disability payments...
True or False: Allocated tips are tips that your employer will assign...
True or False: You must report all cash, check, and debit and credit...
Check the situation(s) below that would generally require the...
CHOOSE THE CORRECT ANSWER: What is Form 4137 (Social Security and...
Form W-2, Wage and Tax Statement, is given to employees by their...
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