Podcast
Questions and Answers
Which of the following is required to report wages on a tax return?
Which of the following is required to report wages on a tax return?
- Employee's name and address
- Employer's name, address, and EIN (correct)
- Employer's phone number
- Employer's email address
What should individuals do if they are paid in cash?
What should individuals do if they are paid in cash?
- Give their earnings to charity
- Ignore their earnings
- Spend all their earnings
- Keep track of their earnings (correct)
How should self-employed individuals report their earnings on a tax return?
How should self-employed individuals report their earnings on a tax return?
- Report total earnings from all sources
- Report only cash earnings
- Report gross earnings
- Report net earnings from self-employment (correct)
How should self-employed individuals report their net earnings?
How should self-employed individuals report their net earnings?
Which form shows the total wages earned during the year?
Which form shows the total wages earned during the year?
What should individuals do with tips received?
What should individuals do with tips received?
How should tips received be reported on a tax return?
How should tips received be reported on a tax return?
Should individuals report other types of income received?
Should individuals report other types of income received?
Who must report income and pay self-employment taxes?
Who must report income and pay self-employment taxes?
What can individuals deduct on Schedule C?
What can individuals deduct on Schedule C?
Can individuals claim a tax credit for childcare expenses?
Can individuals claim a tax credit for childcare expenses?
Can individuals deduct health insurance premiums on Schedule C?
Can individuals deduct health insurance premiums on Schedule C?
What type of retirement plan can individuals contribute to?
What type of retirement plan can individuals contribute to?
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Study Notes
- Wages reported on tax return include salary, bonuses, and commissions.
- Employer's name, address, and EIN are required to report wages.
- Form W-2 shows total wages earned during the year.
- Payroll services provide statements to report wages.
- Self-employed individuals report net earnings from self-employment.
- Tips received should be reported on Form W-2 or Form 4070.
- Other income, such as interest and dividends, should be reported on tax return.
- Cash earnings should be tracked through a daily log or spreadsheet.
- Consult with a tax professional for any questions.
- Reporting wages accurately helps IRS calculate income tax liability.
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