Question 1

____ would not be considered taxable income.

Accepted Answer

A)  Child support payments 
B)  Proceedings from an employer retirement plan 
C)  Dividend income 
D)  a and b 
E)  a,b,and c 
A)  Child support payments 
B)  Proceedings from an employer retirement plan 
C)  Dividend income 
D)  a and b 
E)  a,b,and c

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.
-A tax credit would result from [an IRA contribution | child care expenses].

Accepted Answer

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

Question 3

Over 75% of the revenue received by the federal government is from ____ and ____ taxes.

Accepted Answer

A)  sales and income 
B)  income and excise 
C)  Social Security and estate 
D)  estate and sales 
E)  income and Social Security 
A)  sales and income 
B)  income and excise 
C)  Social Security and estate 
D)  estate and sales 
E)  income and Social Security

Question 4

Jamie has taxable income of $45,000.She is single and her tax rates are 10% on the first $7,000 of taxable income,15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder.What is Jamie's tax liability,her marginal tax rate,and her average tax rate? (Show all work. )

Accepted Answer

Tax liability = .10 ($7,300)+

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.
-Social security taxes are paid on earned income but not on investment income.

Accepted Answer

A) True 
 B)False

Question 6

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.
-[Both you and your employer | Only your employer] will make social security contributions based on your wages.

Accepted Answer

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

Question 7

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.
-If you pay a professional to prepare your taxes,any errors on the return will be [your | the preparer's] responsibility.

Accepted Answer

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

Question 8

Federal income taxes paid can be deducted the following year.

Accepted Answer

A) True 
 B)False

Question 9

Tax evasion is a legal means to avoid tax liabilities.

Accepted Answer

A) True 
 B)False

Question 10

You would typically not include ____ in your gross income.

Accepted Answer

A)  wages and salaries 
B)  life insurance death benefit payments 
C)  interest and dividends 
D)  pension income 
E)  gambling winnings 
A)  wages and salaries 
B)  life insurance death benefit payments 
C)  interest and dividends 
D)  pension income 
E)  gambling winnings

Question 11

____ income is gross income less tax deductions and payments for insurance and retirement savings.

Accepted Answer

A)  Take-home 
B)  EBIT 
C)  Adjusted gross 
D)  Taxable 
E)  Tax-exempt 
A)  Take-home 
B)  EBIT 
C)  Adjusted gross 
D)  Taxable 
E)  Tax-exempt

Question 12

You made an error when you filed your tax return last year.You can correct this error by filing Form

Accepted Answer

A)  1040ES. 
B)  1040X. 
C)  1040E. 
D)  Schedule A. 
E)  Schedule D. 
A)  1040ES. 
B)  1040X. 
C)  1040E. 
D)  Schedule A. 
E)  Schedule D.

Question 13

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.
-Dwayne and Gayle were divorced September 29,have not remarried,and have no dependents.Their filing status for the year will each be "married" since they were married for more than half of the year.

Accepted Answer

A) True 
 B)False

Question 14

Estimated tax payments must be made by those who do not have taxes deducted from their earnings.

Accepted Answer

A) True 
 B)False

Question 15

A progressive tax system is one in which higher-income people pay ____ than lower-income people.

Accepted Answer

A)  a higher dollar amount in taxes 
B)  tax at a higher rate 
C)  a lower dollar amount in taxes 
D)  tax at a lower rate 
E)  tax at the same rate 
A)  a higher dollar amount in taxes 
B)  tax at a higher rate 
C)  a lower dollar amount in taxes 
D)  tax at a lower rate 
E)  tax at the same rate

Question 16

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 sale of your home will rarely result in a taxable capital gain.

Accepted Answer

A) True 
 B)False

Question 17

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.
-You are single with no dependents,age 30.Based on this information,you [could | could not] use the 1040EZ.

Accepted Answer

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

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.
-Excise taxes are similar to [real estate | sales] taxes.

Accepted Answer

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

Question 19

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.
-Social Security taxes are paid on earned income and investment income.

Accepted Answer

A) True 
 B)False

Question 20

By filing a tax extension,one does not have to pay his income tax liability until August 15.

Accepted Answer

A) True 
 B)False

____ would not be considered taxable income.

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. -A tax credit would result from [an IRA contribution | child care expenses].

Over 75% of the revenue received by the federal government is from and taxes.

Jamie has taxable income of $45,000.She is single and her tax rates are 10% on the first $7,000 of taxable income,15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder.What is Jamie's tax liability,her marginal tax rate,and her average tax rate? (Show all work. )

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. -Social security taxes are paid on earned income but not on investment income.

Federal income taxes paid can be deducted the following year.

Tax evasion is a legal means to avoid tax liabilities.

You would typically not include ____ in your gross income.

____ income is gross income less tax deductions and payments for insurance and retirement savings.

You made an error when you filed your tax return last year.You can correct this error by filing Form

Estimated tax payments must be made by those who do not have taxes deducted from their earnings.

A progressive tax system is one in which higher-income people pay ____ than lower-income people.

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 sale of your home will rarely result in a taxable capital gain.

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. -Excise taxes are similar to [real estate | sales] taxes.

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. -Social Security taxes are paid on earned income and investment income.

By filing a tax extension,one does not have to pay his income tax liability until August 15.

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

____ would not be considered taxable income.

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. -A tax credit would result from [an IRA contribution | child care expenses].

Over 75% of the revenue received by the federal government is from ____ and ____ taxes.

Jamie has taxable income of $45,000.She is single and her tax rates are 10% on the first $7,000 of taxable income,15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder.What is Jamie's tax liability,her marginal tax rate,and her average tax rate? (Show all work. )

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. -Social security taxes are paid on earned income but not on investment income.

Federal income taxes paid can be deducted the following year.

Tax evasion is a legal means to avoid tax liabilities.

You would typically not include ____ in your gross income.

____ income is gross income less tax deductions and payments for insurance and retirement savings.

You made an error when you filed your tax return last year.You can correct this error by filing Form

Estimated tax payments must be made by those who do not have taxes deducted from their earnings.

A progressive tax system is one in which higher-income people pay ____ than lower-income people.

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 sale of your home will rarely result in a taxable capital gain.

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. -Excise taxes are similar to [real estate | sales] taxes.

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. -Social Security taxes are paid on earned income and investment income.

By filing a tax extension,one does not have to pay his income tax liability until August 15.

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

Over 75% of the revenue received by the federal government is from and taxes.