Taxes Quiz

Question 1

What are your chances of being audited if you made less than $200,000 last year?

A. About 0.1 percent
B. About 5 percent
C. About 1 percent
D. About 2.5 percent

Question 2

If you collected unemployment last year, what amount is nontaxable?

A. The first $1,200
B. It’s all taxable
C. The first $2,400
D. The first $4,800

Question 3

What’s the maximum “catch-up” IRA contribution for people 50 and older?

A. $3,000
B. $5,000
C. $6,000
D. $7,500

Question 4

Which of the following is not considered a good way to avoid an audit?

A. Avoid round numbers
B. Include a written explanation
C. Document your donations
D. Don’t sign your tax return

Question 5

Which IRS tool can tell you whether or not you need to file a return?

A. e-file
B. Interactive Tax Assistant
C. Free File
D. TurboTax

Question 6

Since 1968, AARP TaxAide has helped prepare tax returns free of charge for …

A. Nearly 300 million people
B. Nearly 100 million people
C. Nearly 50 million people
D. Nearly 25 million people

Question 7

What is not a deductible expense from job hunting in your current field?

A. Making copies of your resume
B. New clothing for interviews
C. Travel expenses
D.Employment agency fees

Question 8

Which of these is not one of the audit red flags for the IRS?

A. Income of less than $100,000 per year
B. Home office deduction
C. Large charitable donations
D. Home-buyer tax credit

Question 9

If you made more than $1 million last year, how likely are you to be audited?

A. 3.2 percent
B. 12.8 percent
C. 1.6 percent
D. 6.4 percent

Question 10

By what date must your federal income tax return be postmarked this year?

A. April 17th
B. April 18th
C. April 1st
D. April 14th