The Ultimate Managing Your Taxes by Online Banking Quiz

The Ultimate Managing Your Taxes by Online Banking Quiz
Image: ©2009 Jupiterimages Corporation

About This Quiz

Paying your taxes online is a safe, convenient and efficient way to file your tax returns. Software packages walk you through the process with guidelines to follow and caveats to heed, which makes paying Uncle Sam easier than ever. Take this quiz and find out how easy it is to fill out those tax forms.
What is the deadline for filing tax returns in the US?
the ides of March
Apr-11
Apr-15
April 15 is the last date to file tax returns, after which there are penalties for late submissions.

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When doing your taxes online, what is an important criterion to ensure that the Web site is secure?
a valid security certificate
Doing your taxes online is relatively secure as long as the Web site has a valid security certificate and your password is strong.
a large number of users
the advice of a friend

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According to the IRS, how many people filed their taxes online in 2008?
50 million
90 million
In 2008, about 90 million people filed their income taxes online.
100 million

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When doing your taxes online, how do your receipts and written records come into play?
You don’t need them.
With online banking, you don’t need to keep any paper receipts or records. All that information is available on the computer.
You keep them on file in your office.
You send them to your bank.

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How do some banks help prepare you for tax time during the year?
They send you monthly notices to save the date.
They let you tag tax-deductible expenses.
Some banks offer a service that allows you to tag any tax-deductible expenses you build up during the year or one that creates a summary of your annual spending habits.
They provide an ask-the auditor Web site

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What is one of the advantages of filing your taxes online?
You know that your tax return is going to the right place.
Filing your tax returns electronically helps assure they get where they need to go and, if applicable, you’ll receive your refund more quickly.
You can start your own small business by doing it for others.
You can do it any time of year.

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If you’re eligible for a tax refund, how can you find out when you’ll receive it?
You can call the IRS hotline.
You can track it online.
If you want to know when your tax refund will arrive, you can track its progress by computer.
You can go to your bank and ask the manager.

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What is TurboTax?
a software package
TurboTax is a software program that gently guides you through the tax return jungle.
tax-deductible expenses for heat and electricity
tax on luxury items like yachts or sports cars

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What is one of the operational functions that TurboTax performs?
spell checking
calculating
As the TurboTax program calculates the sums you enter, you don’t have to worry about your math skills.
fact checking

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According to the IRS, what is a common factor among people who file their tax returns at the last minute?
They have the least complicated forms to fill out.
They are the first ones to receive their tax refunds.
They make more mistakes on their returns.
More than 20 percent of Americans wait until the last week to file their taxes. As theirs are often the most complicated forms, they tend to make more mistakes in their rush to complete them.

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What is one of the most common errors people make when filling out their tax returns?
They forget to sign it.
One of the most common errors people make is that they neglect to sign the form. This happens most often with people who are in a rush to complete their tax returns at the last minute.
They put in the wrong phone number.
They leave out the section about their dependants.

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What costs the IRS less to process -- an electronic file or one done on paper?
an electronic file
It costs the IRS less to process an e-file than a paper one. An e-file costs them 35 cents, while a paper return costs them $2.87 to process.
one on paper
both the same

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Does the IRS ever make mistakes in its calculations?
never
sometimes
The IRS does make mistakes sometimes, so if they send you a letter saying that you have made a math mistake on your return, make sure to check their calculations as well.
often

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Where can you get information about the latest changes in tax codes?
on the IRS Web site
The easiest way to get information about changes in tax codes is through the IRS Web site (irs.gov). Click on the section called LATEST NEWS to get the most current updates.
on the IRS hotline
at your bank

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In the realm of tax returns, what is Form 1040-X?
a tax return for new immigrants
a tax return for newlyweds
an amended tax return
If you made a mistake on a previous return, you can file an amended income tax return on Form 1040-X. You have three years from the filing initial date in which to submit it.

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Why should you keep a copy of your income tax returns?
because the IRS often loses them
to help you track trends in your income taxes
Your previous tax returns will help you see trends in your income taxes and can help you prepare your returns the next time around.
because the IRS sometimes performs post-filing spot checks

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What do Marcus Schrenker and Mark Vaughan have in common?
They were the co-founders of Marks and Spencer.
They were the lawyers in the Luciano Pavarotti tax evasion case.
They both tried to avoid paying taxes by faking their own death.
British nightclub bouncer Mark Vaughan tried to fake his own death in 2007, while financier Marcus Schrenker tried to get away with it in 2009. Vaughan was apprehended two years later, while authorities caught up with Schrenker within a few days.

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What is phishing?
an e-mail scam to try to gather personal financial information
Phishing is a ploy whereby scam artists claiming to represent the IRS send e-mails to taxpayers to try to gather private financial information about them. Note: The IRS never sends unsolicited e-mails or asks for detailed personal and financial information, so be wary of any such requests, and forward any suspicious e-mails to phishing@irs.gov.
hiding money from the IRS in an offshore bank account
filing a phony income tax return

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Which one of the following is NOT a tax-deductible item?
a charitable donation
medical expenses
a family car
Items such as charitable donations, medical expenses and mortgage interest are some of the costs that are deemed as deductions. If they add up to more than the standard deduction you are granted, they can lower the tax on your income.

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What should you do if you can’t afford to pay all your taxes at tax time?
Take out a loan from the bank.
File an installment agreement request.
If you can’t afford to pay your taxes in one shot, you can file an installment agreement request. Form 9465 lets you outline a payment schedule if you meet a certain set of criteria. You’ll be charged interest and penalties, but it will cost you less than not filing at all.
Don’t file a tax return.

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You Got:
/20
©2009 Jupiterimages Corporation

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