Question 1

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Accepted Answer

A) True 
 B)False

Question 2

Cameron Nelson wants to complete his own federal income tax return.He has several questions about the tax form to use and what items should be reported as income.What sources of assistance would you recommend for Cameron?

Accepted Answer

Answers will vary.The IRS offers taxpaye

Question 3

An excise tax is imposed by the federal and state governments on all of the following specific goods,except:

Accepted Answer

A) clothing. 
B) gasoline. 
C) cigarettes. 
D) tires. 
E) air travel. 
A) clothing. 
B) gasoline. 
C) cigarettes. 
D) tires. 
E) air travel.

Question 4

John Williams goes into a local department store and purchases a new suit.He pays $48 in taxes on this purchase.What type of tax is this most likely to be?

Accepted Answer

A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax 
A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax

Question 5

What is the difference between tax-exempt income and tax-deferred income?

Accepted Answer

Tax exempt income is

Question 6

An expense that would be included in the itemized deductions of a taxpayer is:

Accepted Answer

A) personal postage expenses. 
B) life insurance premiums. 
C) real estate property taxes. 
D) retirement plan contributions. 
E) annual interest paid on credit cards. 
A) personal postage expenses. 
B) life insurance premiums. 
C) real estate property taxes. 
D) retirement plan contributions. 
E) annual interest paid on credit cards.

Question 7

Examples of tax credits do not include a/an ________ tax credit.

Accepted Answer

A) energy-savings 
B) adoption 
C) elderly and disabled 
D) credit card 
E) savers 
A) energy-savings 
B) adoption 
C) elderly and disabled 
D) credit card 
E) savers

Question 8

________ may involve an official-looking (but phony)letter or e-mail sent to a taxpayer to trick them into disclosing personal information and bank account numbers by stating that the taxpayer is entitled to a tax refund from the IRS.

Accepted Answer

A) Phishing 
B) Office audits 
C) Field audits 
D) Correspondence audits 
E) Tax solicitations 
A) Phishing 
B) Office audits 
C) Field audits 
D) Correspondence audits 
E) Tax solicitations

Question 9

What sources are available for professional tax assistance?

Accepted Answer

The sources available for professional t

Question 10

Which one of the following would reduce gross income to obtain adjusted gross income?

Accepted Answer

A) IRA contributions 
B) Mortgage interest 
C) Medical expenses 
D) Moving expenses 
E) Charitable contributions 
A) IRA contributions 
B) Mortgage interest 
C) Medical expenses 
D) Moving expenses 
E) Charitable contributions

Question 11

Which one of these investments produces tax-exempt income?

Accepted Answer

A) Real estate 
B) Corporate stock 
C) Retirement plan 
D) Municipal bond 
E) Corporate bond 
A) Real estate 
B) Corporate stock 
C) Retirement plan 
D) Municipal bond 
E) Corporate bond

Question 12

Money received in the form of dividends or interest is classified as ________ income.

Accepted Answer

A) passive 
B) earned 
C) excluded 
D) capital gain 
E) investment 
A) passive 
B) earned 
C) excluded 
D) capital gain 
E) investment

Question 13

Kim Lee is single and earns $32,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes.   Calculate the dollar amount of estimated taxes that Kim owes.

Accepted Answer

A) $3,200.00 
B) $3,649.50 
C) $3,840.00 
D) $7,040.00 
E) $7,680.00 
A) $3,200.00 
B) $3,649.50 
C) $3,840.00 
D) $7,040.00 
E) $7,680.00

Question 14

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

Accepted Answer

A) Roth IRA 
B) Education Savings Account 
C) Keogh Plan 
D) 401(k)Plan 
E) 529 Plan 
A) Roth IRA 
B) Education Savings Account 
C) Keogh Plan 
D) 401(k)Plan 
E) 529 Plan

Question 15

The interest is deductible on your tax return for which of the following?

Accepted Answer

A) Home equity loan 
B) Auto loan 
C) Credit card 
D) Life insurance policy cash value loan 
E) Personal cash loan from a credit union 
A) Home equity loan 
B) Auto loan 
C) Credit card 
D) Life insurance policy cash value loan 
E) Personal cash loan from a credit union

Question 16

Two types of education savings plans are the Coverdell Education Savings Account and the:

Accepted Answer

A) 401(k). 
B) 529 plan. 
C) Keogh plan. 
D) Traditional IRA. 
E) Roth IRA. 
A) 401(k). 
B) 529 plan. 
C) Keogh plan. 
D) Traditional IRA. 
E) Roth IRA.

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Cameron Nelson wants to complete his own federal income tax return.He has several questions about the tax form to use and what items should be reported as income.What sources of assistance would you recommend for Cameron?

An excise tax is imposed by the federal and state governments on all of the following specific goods,except:

John Williams goes into a local department store and purchases a new suit.He pays $48 in taxes on this purchase.What type of tax is this most likely to be?

What is the difference between tax-exempt income and tax-deferred income?

An expense that would be included in the itemized deductions of a taxpayer is:

Examples of tax credits do not include a/an ________ tax credit.

________ may involve an official-looking (but phony)letter or e-mail sent to a taxpayer to trick them into disclosing personal information and bank account numbers by stating that the taxpayer is entitled to a tax refund from the IRS.

What sources are available for professional tax assistance?

Which one of the following would reduce gross income to obtain adjusted gross income?

Which one of these investments produces tax-exempt income?

Money received in the form of dividends or interest is classified as ________ income.

Kim Lee is single and earns $32,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes. Calculate the dollar amount of estimated taxes that Kim owes.

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

The interest is deductible on your tax return for which of the following?

Two types of education savings plans are the Coverdell Education Savings Account and the:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 4: Planning Your Tax Strategy

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Cameron Nelson wants to complete his own federal income tax return.He has several questions about the tax form to use and what items should be reported as income.What sources of assistance would you recommend for Cameron?

An excise tax is imposed by the federal and state governments on all of the following specific goods,except:

John Williams goes into a local department store and purchases a new suit.He pays $48 in taxes on this purchase.What type of tax is this most likely to be?

What is the difference between tax-exempt income and tax-deferred income?

An expense that would be included in the itemized deductions of a taxpayer is:

Examples of tax credits do not include a/an ________ tax credit.

________ may involve an official-looking (but phony)letter or e-mail sent to a taxpayer to trick them into disclosing personal information and bank account numbers by stating that the taxpayer is entitled to a tax refund from the IRS.

What sources are available for professional tax assistance?

Which one of the following would reduce gross income to obtain adjusted gross income?

Which one of these investments produces tax-exempt income?

Money received in the form of dividends or interest is classified as ________ income.

Kim Lee is single and earns $32,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes. Calculate the dollar amount of estimated taxes that Kim owes.

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

The interest is deductible on your tax return for which of the following?

Two types of education savings plans are the Coverdell Education Savings Account and the:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters