Notes

List two ways individuals can reduce their tax burden.: There are many ways, but contributing to a 401(k), making charitable donations, and deducting mortgage interest are three of the ways to reduce a tax burden.
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What is adjusted gross income and why is it important?: Adjusted gross income is total income minus adjustments. It is used to determine a taxpayer's tax.
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What is earned income?: Earned income includes all taxable income and wages from working.
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An employer uses a W-4 form to _____.: Report income
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If Barbara is self-employed, what type of document will she use to file taxes?: 1099-Misc
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If Daniel is ready to file his taxes, and he worked for an employer in the tax year, which of the following will he need?: W-2
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If a taxpayer does not respond to the IRS about owing money, how long will it take the IRS to take further actions to collect the money owed?: 30 days after the notice
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Tim receives a letter from the IRS stating he owes money. Tim is unsure if he can afford the amount owed. What should he do?: contact the IRS to set up a payment arrangement
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Mike finds out that his church is considered tax-exempt. Which of the following statements is correct?: The church does not pay income taxes.
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