MDC chapter 11
True
If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions
False
Employees with two or more jobs or with a spouse who also is employed must complete the
"Two-Earners/Multiple Jobs Worksheet" on Page 2 of Form W-4 to determine the number of withholding allowances
If a husband and wife both work, they must divide their withholding allowances equally on their
W-4 Forms.
False
Qualified moving expenses reimbursed by an employer are not reported as part of the employee's gross income and are therefore not subject to withholding.
Reimbursements of moving expenses are always subject to withholding.
True
The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.
True
If taxpayers fail to provide their bank with an identification number, they are subject to backup withholding on interest payments.
True
Taxpayers with large amounts of deductions may claim extra withholding allowances on their
Form W-4s.
True
A nondeductible penalty is imposed on underpayments of estimated taxes
False
If a taxpayer discovers that his or her original calculation for an estimated tax payment was inaccurate, then the taxpayer should revise the calculation for any remaining estimated payments.
If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.
True
Individual quarterly estimated tax payments are filed with Form 1040-ES.
False
An individual who has estimated tax for the year of $1,000 or more, after subtracting withholding, and whose withholding does not equal or exceed the "required annual payment", must make quarterly estimated payments
An individual who expects to receive more than $500 of income
If an employee does not complete a Form W-4, the employer must withhold tax as if the employee were single with no exemptions
False
Employees with two or more jobs or with a spouse who also is employed must complete the
"Two-Earners/Multiple Jobs Worksheet" on Page 2 of Form W-4 to determine the number of withholding allowances
If a husband and wife both work, they must divide their withholding allowances equally on their
W-4 Forms.
False
Qualified moving expenses reimbursed by an employer are not reported as part of the employee's gross income and are therefore not subject to withholding.
Reimbursements of moving expenses are always subject to withholding.
True
The two most common methods of determining federal income tax withholding are the percentage method and the wage bracket method.
True
If taxpayers fail to provide their bank with an identification number, they are subject to backup withholding on interest payments.
True
Taxpayers with large amounts of deductions may claim extra withholding allowances on their
Form W-4s.
True
A nondeductible penalty is imposed on underpayments of estimated taxes
False
If a taxpayer discovers that his or her original calculation for an estimated tax payment was inaccurate, then the taxpayer should revise the calculation for any remaining estimated payments.
If an individual taxpayer discovers that his or her original estimate for estimated tax payments was inaccurate, the taxpayer should continue to make payments based on the original estimate and pay any additional amount or request any refund when the tax return is filed.
True
Individual quarterly estimated tax payments are filed with Form 1040-ES.
False
An individual who has estimated tax for the year of $1,000 or more, after subtracting withholding, and whose withholding does not equal or exceed the "required annual payment", must make quarterly estimated payments
An individual who expects to receive more than $500 of income