Exam 4: Planning Your Tax Strategy

Mary Watson bought 20 shares of stock two years ago.She recently sold her stock making a profit of $1,400.Long-term capital gain rates are 15% for her income level.She is in the 22% tax bracket.Her tax on this investment is:

For tax years prior to 2018,a deduction from adjusted gross income for yourself,your spouse,and qualified dependents was termed:

Ms.Nelson is a single mom with three children who live at home.She earned less than $40,000 in 2018.What is the maximum amount of earned income tax credit that she may qualify for?

Which of the following would not be included in gross income?

Taxpayers with high incomes and high amounts of certain deductions may be subject to an additional tax referred to as the ________ tax.

The principal purpose of taxes is to control economic conditions.

State and local governments may impose a personal property tax on the value of automobiles.

Tax-deferred retirement plans are a type of:

Drew Davis earns $4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes.What type of tax is this most likely to be?

Personal property taxes may tax the value of:

Earned income is money received from:

The Tax Cuts and Jobs Act allows owners of a sole proprietor or partnership to deduct up to ________ percent of the income earned by the business from their individual return to arrive at taxable income beginning in 2018.

Taxable income is a result of subtracting adjustments to income and standard (or itemized)deductions from gross income.

A person has $5,000 in medical expenses and an adjusted gross income of $33,000.If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5 percent of adjusted gross income,what would be the amount of the deduction in this situation?

What type of tax is imposed on the value of an individual's property at the time of his or her death?

Capital gains refer to:

Which one of the following is included in gross income?

Elaine's Embroidery Emporium which is run out of Elaine's home is visited by an IRS agent who wants to verify the office expenses Elaine claims are valid.What type of IRS audit is this?

A tax credit of $100 for a person in a 24 percent tax bracket would reduce a person's taxes owed by:

Real estate property taxes are the major source of revenue for local government.