Tax Preparation Tax Withholding and Estimated Taxes 3

Question 1

FICA payroll taxes withheld from an employee's paycheck fund which two federal programs?

Accepted Answer

Social Security and Medicare

Answer

Medicare and Medicaid

Answer

Unemployment Insurance and Workers' Compensation

Answer

Social Security and Medicaid

Question 2

For 2024, the Social Security wage base means that the 6.2% Social Security tax applies only to wages up to what amount?

Accepted Answer

$168,600

Answer

$147,000

Answer

$160,200

Answer

$176,100

Question 3

The Additional Medicare Tax of 0.9% applies to wages and self-employment income above what threshold for single filers?

Accepted Answer

$200,000

Answer

$125,000

Answer

$250,000

Answer

$300,000

Question 4

By what deadline must employers furnish Form W-2 to their employees?

Accepted Answer

January 31

Answer

January 15

Answer

February 15

Answer

February 28

Question 5

Form 941, the Employer's Quarterly Federal Tax Return, is used to report which of the following?

Accepted Answer

Federal income tax withheld plus the employer's and employee's FICA taxes

Answer

Annual business income and deductible expenses

Answer

Estimated tax payments made by the business during the quarter

Answer

Federal unemployment taxes owed under FUTA

Question 6

A taxpayer with highly uneven income — earning most of it in Q3 — can use which method on Form 2210 to potentially reduce their underpayment penalty?

Accepted Answer

Annualized income installment method

Answer

Short method

Answer

Regular method

Answer

Safe harbor exception method

Question 7

If a taxpayer overpays their estimated taxes for the year, what two options are available when filing their return?

Accepted Answer

Receive a refund or apply the overpayment to the following year's estimated taxes

Answer

Carry forward to next year or donate the excess to federal programs

Answer

Request penalty abatement or receive IRS interest on the overpayment

Answer

Apply the excess to state taxes or request a partial refund