Question 1

For tax purposes,head-of-household refers to

Accepted Answer

A)  the person with the larger income when a couple is filing a joint return. 
B)  a single individual with dependents. 
C)  a single individual who owns a home. 
D)  the spouse who has the only income for a couple filing a joint return. 
E)  a widow(er)with no dependents but with debts from death of spouse three years earlier. 
A)  the person with the larger income when a couple is filing a joint return. 
B)  a single individual with dependents. 
C)  a single individual who owns a home. 
D)  the spouse who has the only income for a couple filing a joint return. 
E)  a widow(er)with no dependents but with debts from death of spouse three years earlier.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The form you fill out to give your employer an idea of how much income tax to withhold is called the [W-2 | W-4].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Interest you paid on your [vacation home | stereo] loan could be deducted.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 4

John and Charlotte are considering contributing $1,000 to their church.This contribution will bring their total itemized deductions to $2,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $1,000 to their church?

Accepted Answer

A)  $ 0 
B)  $ 150 
C)  $ 300 
D)  $ 500 
E)  $1,000 
A)  $ 0 
B)  $ 150 
C)  $ 300 
D)  $ 500 
E)  $1,000

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Tax [avoidance | evasion] focuses on reducing taxes in ways that are legal and compatible with the intent of Congress.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 6

On which of the following types of income would you normally have income tax withheld?

Accepted Answer

A)  Tips 
B)  Interest 
C)  Dividends 
D)  Capital gains 
E)  Self-employment income 
A)  Tips 
B)  Interest 
C)  Dividends 
D)  Capital gains 
E)  Self-employment income

Question 7

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Accepted Answer

A) True 
 B)False

Question 8

Income shifting refers to the process of transferring income from the taxpayer to the IRS.

Accepted Answer

A) True 
 B)False

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Gross income minus tax exempt income equals adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 10

Henry is married to Lillian,and they have two dependent children.Henry can legally file using which of the following filing statuses?

Accepted Answer

A)  Single 
B)  Married filing jointly 
C)  Head of household 
D)  Qualifying widow 
E)  Any of the above 
A)  Single 
B)  Married filing jointly 
C)  Head of household 
D)  Qualifying widow 
E)  Any of the above

Question 11

A declaration of estimated taxes is made by filing

Accepted Answer

A)  Schedule B. 
B)  Form 1040 EZ. 
C)  Schedule Z. 
D)  Form 1040 ES. 
E)  Form 1040 A. 
A)  Schedule B. 
B)  Form 1040 EZ. 
C)  Schedule Z. 
D)  Form 1040 ES. 
E)  Form 1040 A.

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The standard or itemized deduction,reduces the taxpayer's [taxable income | taxes due].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

Which of the following cannot be adjustment(s)to gross income on the 1040 form?

Accepted Answer

A)  Health insurance premiums paid by self-employed individuals 
B)  Alimony paid 
C)  Moving expenses 
D)  Traditional IRA contributions 
E)  Child care deductions 
A)  Health insurance premiums paid by self-employed individuals 
B)  Alimony paid 
C)  Moving expenses 
D)  Traditional IRA contributions 
E)  Child care deductions

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Income tax refunds are automatically sent to those who qualify for refunds no later than April 15.

Accepted Answer

A) True 
 B)False

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The Internal Revenue Service is responsible for writing the federal income tax codes.

Accepted Answer

A) True 
 B)False

Question 16

A ____ would be most likely to have to pay estimated taxes.

Accepted Answer

A)  school teacher 
B)  manager for a major industrial firm 
C)  self-employed plumber 
D)  union worker 
E)  corporate attorney 
A)  school teacher 
B)  manager for a major industrial firm 
C)  self-employed plumber 
D)  union worker 
E)  corporate attorney

Question 17

Regarding income tax legislation,which of the following are true statements?

Accepted Answer

A)  The federal income tax law was first outlined in 1900. 
B)  The biggest and most controversial modern tax legislation occurred in 1986. 
C)  The most current tax legislation was passed in 1997. 
D)  Recent tax legislation has greatly simplified the tax filing process. 
E)  All of the above are true statements. 
A)  The federal income tax law was first outlined in 1900. 
B)  The biggest and most controversial modern tax legislation occurred in 1986. 
C)  The most current tax legislation was passed in 1997. 
D)  Recent tax legislation has greatly simplified the tax filing process. 
E)  All of the above are true statements.

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-My son,age 26 and a full-time college student,earned $5,000 last year.He still lives at home,and I provide over 50% of his support.I [can | cannot] claim him as a dependent on my tax return.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 19

If you do not wish to itemize deductions,you can use the

Accepted Answer

A)  pay-as-you-go amount. 
B)  bracket deduction. 
C)  standard deduction. 
D)  exemption. 
E)  withholding allowance. 
A)  pay-as-you-go amount. 
B)  bracket deduction. 
C)  standard deduction. 
D)  exemption. 
E)  withholding allowance.

Question 20

Mortgage interest and paid home property taxes are both itemized deduction items.

Accepted Answer

A) True 
 B)False

For tax purposes,head-of-household refers to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Interest you paid on your [vacation home | stereo] loan could be deducted.

John and Charlotte are considering contributing $1,000 to their church.This contribution will bring their total itemized deductions to $2,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $1,000 to their church?

On which of the following types of income would you normally have income tax withheld?

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Income shifting refers to the process of transferring income from the taxpayer to the IRS.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Gross income minus tax exempt income equals adjusted gross income.

Henry is married to Lillian,and they have two dependent children.Henry can legally file using which of the following filing statuses?

A declaration of estimated taxes is made by filing

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The standard or itemized deduction,reduces the taxpayer's [taxable income | taxes due].

Which of the following cannot be adjustment(s)to gross income on the 1040 form?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The Internal Revenue Service is responsible for writing the federal income tax codes.

A ____ would be most likely to have to pay estimated taxes.

Regarding income tax legislation,which of the following are true statements?

If you do not wish to itemize deductions,you can use the

Mortgage interest and paid home property taxes are both itemized deduction items.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 3: Preparing Your Taxes

For tax purposes,head-of-household refers to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Interest you paid on your [vacation home | stereo] loan could be deducted.

John and Charlotte are considering contributing $1,000 to their church.This contribution will bring their total itemized deductions to $2,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $1,000 to their church?

On which of the following types of income would you normally have income tax withheld?

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Income shifting refers to the process of transferring income from the taxpayer to the IRS.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Gross income minus tax exempt income equals adjusted gross income.

Henry is married to Lillian,and they have two dependent children.Henry can legally file using which of the following filing statuses?

A declaration of estimated taxes is made by filing

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The standard or itemized deduction,reduces the taxpayer's [taxable income | taxes due].

Which of the following cannot be adjustment(s)to gross income on the 1040 form?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The Internal Revenue Service is responsible for writing the federal income tax codes.

A ____ would be most likely to have to pay estimated taxes.

Regarding income tax legislation,which of the following are true statements?

If you do not wish to itemize deductions,you can use the

Mortgage interest and paid home property taxes are both itemized deduction items.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters