If you think you have mastered the material in this chapter, take our quiz. Fill in your answers and click “submit.” The correct answers will appear below.

  1. You should decide which tax form to file based on:

    The one you filed last year.
    The one that’s easiest to complete.
    The one that best meets your current tax circumstances.
  2. In figuring your tax bill, you must distinguish between two types of income that are treated differently for taxation purposes. They are:

    Earned and unearned.
    Hourly wages and salary income.
    Employer-paid and self-employment money.
  3. U.S. tax rates are progressive. That means:

    My tax bill will be bigger each year.
    Your tax bill is based on the final rate into which your income ”progresses.”
    Your income is subject to several tax rates.

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