Question

tax preparation options
paper
fill out a paper 1040 form and mail it to the irs.
online
use tax preparation software to help complete a 1040 form and send it to the irs electronically.
tax expert
find a tax professional who can help you prepare and file your taxes.

1. based on the information above, which of these is true? epf.ie.2.3

a. filing on paper is still the easiest option for most people, and it is what the irs prefers.
b. using software or a tax expert can add cost, but can reduce the risk of errors especially for complicated returns.
c. you should never file your taxes online because of the risk of identity theft.
d. your income tax bracket determines the method you should use to file.

1. which statement regarding standard vs itemized deductions is not correct?

a. you have a choice which one to use and you want to choose which one is lower.
b. if the standard deduction is more than the itemized deduction, use the standard deduction.
c. both of these can be used to figure out the taxable income on your federal tax return.

1. which of these statements regarding tax returns is not correct?

a. the deadline to file a tax return is april 15th.
b. you are required to file a tax return every year.
c. you only need to file a tax return if you earn less than $100,000 a year.

Explanation:

Question 21

• Option a: The table doesn't say paper filing is easiest or IRS - preferred.
• Option b: Tax software and experts may have costs (e.g., software fees, expert fees) but are more likely to reduce errors, especially for complex returns (e.g., business income, multiple deductions), which is a reasonable statement.
• Option c: The table doesn't mention identity theft risks with online filing, and "never" file online is an extreme and unsubstantiated claim.
• Option d: The table shows filing methods (paper, online, tax expert) and doesn't link them to income tax brackets.

Question 22

• Option a: You choose the deduction (standard or itemized) that is higher (to reduce taxable income more), not lower. So this is incorrect.
• Option b: If standard deduction > itemized, using standard is correct as it reduces taxable income more.
• Option c: Both standard and itemized deductions are used to calculate taxable income (taxable income = adjusted gross income - deduction).

Question 23

• Option a: The tax filing deadline is generally April 15th (for most individuals), so this is correct.
• Option b: In general, most taxpayers are required to file a tax return every year (if they meet income or other criteria), so this is a correct general statement.
• Option c: Filing requirements depend on multiple factors (income level, filing status, age, etc.), not just earning less than $100,000. For example, a high - income earner must file, and a low - income earner may not need to file depending on other factors (e.g., a child with no income doesn't need to file).

Answer:

b. Using software or a tax expert can add cost, but can reduce the risk of errors especially for complicated returns.