Our federal income tax system is a pay-as-you-go tax. You must pay the tax as you receive the income during the year. In this tax topic you will learn how taxpayers get income withheld from their pay and other income such as pensions, bonuses, commissions, and gambling winnings. However, if no one withholds from your sources of income, you might have to pay estimated taxes such as when the taxpayer is business for himself or herself. A taxpayer may also have to pay estimated taxes on income such as dividends, interest, capital gains, rents, and royalties. In addition, you will learn how to take credit for the withholding on the tax return and calculate the penalties for not paying enough.  

Tax School Homepage

Student Instructions:

Print this page, work on the questions and then submit test by mailing the answer sheet or by completing quiz online.

Instructions to submit quiz online successfully: Step-by-Step check list

Answer Sheet            Quiz Online

Most forms are in Adobe Acrobat PDF format. You will need Adobe Reader to view and print these forms. If you do not already have Adobe Reader installed on your computer, you may download the software for free.

Please use IRS Publication 505, IRS Publication 515 and Form 1040 Instructions (Form 1040 instructions only up to page 98) to complete this tax topic.

Please note: Form 1040 Instructions (Form 1040 instructions only up to page 98) will be used for the rest of the topics in the initial tax preparer certification course. You will be responsible to answer questions from the Form 1040 instructions booklet (up to page 98) on every topic so read it carefully.