In: Finance
1. Federal income tax returns must be:
A) filled out by hand, typed, or completed electronically.
B) filled out by hand, if not completed electronically.
C) typed if not completed electronically.
2. Based on his taxable income calculation on his tax return, George owes $5610 in federal income taxes for the year. His employer reported to the IRS that it withheld $6510 from his paychecks this year. Which of the following statements is correct?
A) George’s employer will owe a penalty for under withholding.
B) George will not have to file a tax return.
C) George will receive a refund of $900.
D) George owes an additional $900.
Answer :
1. Federal income tax returns must be:
A) filled out by hand, typed, or completed electronically.
B) filled out by hand, if not completed electronically.
C) typed if not completed electronically.
Solution : A) filled out by hand, typed, or completed electronically.
2. Based on his taxable income calculation on his tax return, George owes $5610 in federal income taxes for the year. His employer reported to the IRS that it withheld $6510 from his paychecks this year. Which of the following statements is correct?
A) George’s employer will owe a penalty for under withholding.
B) George will not have to file a tax return.
C) George will receive a refund of $900.
D) George owes an additional $900.
Solution : C) George will receive a refund of $900.