SHORT ANSWER
What is the purpose of a federal tax return?
A. It is used to report income and calculate how much federal tax is
owed.
B. When total tax withholdings exceed the tax due.
C. Taxpayers can claim certain amounts of deductions, exemptions,
or other items that are subtracted from gross income to derive taxable
income.
D. The gain would be long-term and taxed at a lower rate.
E. No. Many estates never pay a tax because a certain amount can
pass to heirs without tax. (Money left to surviving spouses is also not
taxed.)
Choose
A
O
B
O
C
O
D
O
E
O
