What Income Tax Form Does an Employee Use to Report

question 132

Multiple Choice

What income tax form does an employee use to report business expenses that are not reimbursed by an employer under an accountable plan?

• A)Form 2106,Employee Business Expenses
• B)No form,the expenses are not deductible by the employee
• C)Schedule D
• D)Schedule R
• E)Schedule C

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Definitions:

Compounded Annually

Interest on an investment that is calculated once per year, taking into account the interest that has accumulated up to that point.

Compounded Daily

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, with the compound frequency being every day.

Federal Deposit Insurance Corporation

A U.S. government agency that insures deposits in banks and thrift institutions for at least $250,000 per depositor, per bank.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied on a monthly basis.