Tax Preparation Tax Forms and Procedures 1 — Questions and Answers
Question 1: What is the standard due date for individual tax returns (Form 1040) for calendar-year taxpayers?
- March 15
- April 1
- April 15 (Correct answer)
- May 1
Correct answer: April 15
Form 1040 is due on April 15 for calendar-year individual taxpayers; if April 15 falls on a weekend or holiday, it shifts to the next business day.
Question 2: Form 4868 grants an automatic extension to file Form 1040 for how many months?
- 3 months
- 4 months
- 6 months (Correct answer)
- 12 months
Correct answer: 6 months
Form 4868 grants an automatic 6-month extension to file (not to pay), extending the filing deadline to October 15.
Question 3: Which form is used to report the additional 10% early withdrawal penalty on retirement account distributions?
- Form 5329 (Correct answer)
- Form 1099-R
- Schedule SE
- Form 8606
Correct answer: Form 5329
Form 5329 is used to calculate and report the 10% additional tax on early distributions from qualified retirement plans.
Question 4: A taxpayer needs to correct an error on a previously filed Form 1040. Which form do they use?
- Form 1040-SR
- Form 1040-X (Correct answer)
- Form 1040-ES
- Form 1040-EZ
Correct answer: Form 1040-X
Form 1040-X, Amended U.S. Individual Income Tax Return, is used to correct errors or make changes to a previously filed return.
Question 5: Which schedule reports capital gains and losses from the sale of investments?
- Schedule A
- Schedule B
- Schedule D (Correct answer)
- Schedule E
Correct answer: Schedule D
Schedule D is used to report capital gains and losses from the sale or exchange of capital assets such as stocks and real estate.
Question 6: Form W-4 is completed by an employee to:
- Report wages to the IRS
- Claim withholding allowances and instruct the employer on withholding (Correct answer)
- Apply for an ITIN
- Report tips to the employer
Correct answer: Claim withholding allowances and instruct the employer on withholding
Form W-4, Employee's Withholding Certificate, tells the employer how much federal income tax to withhold from the employee's paycheck.
Tax Preparation Tax Forms and Procedures 1
What is the standard due date for individual tax returns (Form 1040) for calendar-year taxpayers?