Tax Form Challenge: How Well Do You Know Your Basic Small Business Tax Forms?

Basic Tax Forms You Should Know

Welcome to Buying a Small Business Quiz!

This quiz will test your knowledge of the basic small business tax forms you should know.

Are you ready to put your knowledge to the test?

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1. What is the purpose of Form W-4 and when should it be filed?

A form for reporting annual income to the IRS, filed at the end of each tax year

A form for reporting business expenses, filed monthly for tax deductions

A form used by employers to track employee attendance, filed weekly for payroll purposes

A form used by employees to indicate their federal tax withholding, filed when starting a new job or when changes occur

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2. What is the purpose of Form SS-4?

A form for reporting personal income tax, filed annually by individuals

A form for registering a new business entity with the state, filed prior to starting operations

A form used to apply for an Employer Identification Number (EIN), filed when starting a business or hiring employees

A form for reporting investment income to the IRS, filed quarterly for tax purposes

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3. What is the purpose of Form W-9?

A form for reporting annual income to the IRS, filed by self-employed individuals

A form for reporting quarterly sales tax to the state revenue department, filed by businesses with taxable sales

A form used to provide taxpayer identification information to businesses paying for services, filed by individuals or entities receiving payments

A form for claiming tax deductions for charitable donations, filed by taxpayers at the end of each tax year

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4. What is the purpose of Form 1099-MISC and when should it be filed?

A form used to report payments made to independent contractors and other non-employees, filed by businesses by January 31st following the tax year

A form for reporting annual income to the IRS, filed by employees of a company

A form for reporting tax deductions for mortgage interest paid, filed by the lender

A form for reporting quarterly estimated tax payments, filed by self-employed individuals

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5. What is the purpose of Form I-9 and when should it be filed?

A form for reporting annual income to the IRS, filed by employees

A form used to verify the identity and employment eligibility of newly hired employees, filed within three days of the employee’s start date

A form for reporting workplace accidents and injuries, filed by employers within 24 hours of the incident

A form for tracking employee attendance, filed by employers on a monthly basis

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6. What is the purpose of Form W-2 and when should it be filed?

A form used to report wages, tips, and other compensation paid to employees, filed by employers by January 31st following the tax year

A form for reporting business expenses to the IRS, filed annually by self-employed individuals

A form for claiming tax credits and deductions, filed by taxpayers at the end of each tax year

A form for reporting quarterly estimated tax payments, filed by individuals with self-employment income

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7. What is the purpose of Form 1065 and when should it be filed?

A form for claiming deductions for mortgage interest and property taxes, filed by homeowners

A form for reporting individual income tax returns, filed by taxpayers

A form for reporting quarterly estimated tax payments, filed by self-employed individuals

A form used to report partnership income and losses, filed by partnerships by the 15th day of the third month following the end of the partnership’s tax year

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8. What is the purpose of Form K-1 in a partnership, and when should it be filed?

Form K-1 is used to report the annual income of a partnership, filed by the partnership on a quarterly basis

Form K-1 is used to report the financial statements of a partnership, filed by each partner individually on an annual basis

Form K-1 is used to report the distributive share of partnership income, deductions, and credits allocated to each partner, filed annually by the partnership

Form K-1 is used to report the expenses incurred by partners in a partnership, filed by each partner on a monthly basis

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9. What is the purpose of Form 1120S, and when should it be filed?

Form 1120S is used to report the annual income, deductions, and tax liability of an S corporation, filed by the corporation by the 15th day of the third month following the end of its tax year

Form 1120S is used to report quarterly sales tax to the state revenue department, filed by S corporations on a quarterly basis

Form 1120S is used to report individual income tax returns, filed by shareholders of S corporations on an annual basis

Form 1120S is used to claim tax credits for energy-efficient investments, filed by businesses engaged in qualified energy projects on an annual basis

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10. What is the purpose of Form 4562, and when should it be filed?

Form 4562 is used to report quarterly estimated tax payments, filed by individuals or businesses throughout the tax year

Form 4562 is used to claim tax credits for research and development expenses, filed by businesses engaged in qualified research activities on an annual basis

Form 4562 is used to report expenses related to employee benefits, filed by employers on a monthly basis

Form 4562 is used to report depreciation and amortization expenses for assets placed in service, filed by individuals or businesses as part of their annual tax return

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11. What is the purpose of Form 8829, and when should it be filed?

Form 8829 is used to report quarterly estimated tax payments, filed by individuals or businesses throughout the tax year

Form 8829 is used to claim tax deductions for business use of a home, filed by self-employed individuals or employees who work from home on an annual basis

Form 8829 is used to report rental income and expenses for investment properties, filed by real estate investors on a monthly basis

Form 8829 is used to report capital gains or losses from the sale of stocks or real estate, filed by individuals or corporations on a quarterly basis

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12. When is it appropriate to use Schedule SE when computing your income taxes?

When you have rental income from a property you own

When you have self-employment income exceeding $400

When you have dividend income from investments

When you have capital gains from the sale of stocks or real estate

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13. When is it appropriate to use either Schedule C or Schedule E when computing income?

Use Schedule C for reporting rental income from real estate properties and Schedule E for reporting self-employment income

Use Schedule C for reporting self-employment income from a business you operate as a sole proprietor and Schedule E for reporting rental income from real estate properties

Use Schedule C for reporting self-employment income from a business you operate as a sole proprietor and Schedule E for reporting rental income from real estate properties or certain other passive income sources

Use Schedule C for reporting rental income from real estate properties and Schedule E for reporting dividend income from investments