Exam 4: Planning Your Tax Strategy

Kelly Vernon wants her tax return prepared by a government-approved tax expert.Which of the following tax preparers should Kelly use?

Explain the difference between a short-term capital gain and a long-term capital gain.

In recent years,how many states have not had a general sales tax?

Effective personal tax strategies include:

Which one of the following people is least likely to have to file a federal income tax return?

Tax avoidance refers to the use of illegal actions to reduce one's taxes.

A person who owes total federal income taxes of $3,450 but had total withholdings of $3,125 would:

A drawback of Flexible Spending Accounts is that any account funds must be used to pay for expenses incurred before year's end or the money is lost.

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

An itemized deduction of $800 with a 33 percent tax rate would reduce a person's taxes by:

An office audit requires that a person visit an IRS office to clarify some aspect of his or her tax return.

Michael closed on his new home December 31,2018 instead of January 1,2019.As a result,Michael:

Approximately what percent of tax filers are audited each year?

The pay-as-you-go system requires:

Which of the following is a major source of revenue for local governments?

Although you should generally keep tax records for 3 years from the date you file your return,you may be held responsible for providing back documentation up to:

The standard deduction is a set amount on which no taxes are paid. For 2018,single people receive a standard deduction of:

A taxpayer whose spouse recently died and who has a dependent is most likely to use the ________ filing status.

The interest paid on which type of loan is not tax deductible?

Capital gains refer to profits from the sale of stocks,bonds,or real estate.