Question 1

You are preparing your own tax return.The least costly source for answering your questions would be

Accepted Answer

A)  IRS 800 numbers. 
B)  private preparation service. 
C)  tax accountant. 
D)  tax lawyer. 
E)  local post office. 
A)  IRS 800 numbers. 
B)  private preparation service. 
C)  tax accountant. 
D)  tax lawyer. 
E)  local post office.

Question 2

In 2011,the total Social Security tax was

Accepted Answer

A)  6.0%. 
B)  6.75%. 
C)  7.25%. 
D)  11%. 
E)  13.3%. 
A)  6.0%. 
B)  6.75%. 
C)  7.25%. 
D)  11%. 
E)  13.3%.

Question 3

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 4

Molly and Justin are considering contributing $5,000 to their favorite,tax deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to charity?

Accepted Answer

A)  $ 0 
B)  $ 840 
C)  $1,400 
D)  $2,000 
E)  $5,000 
A)  $ 0 
B)  $ 840 
C)  $1,400 
D)  $2,000 
E)  $5,000

Question 5

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2011.Assuming she does not remarry,in 2012 the only legal filing status for Molly will be

Accepted Answer

A)  single 
B)  married filing separately 
C)  head of household 
D)  qualifying widow 
E)  any of the above 
A)  single 
B)  married filing separately 
C)  head of household 
D)  qualifying widow 
E)  any of the above

Question 6

A capital gain is the result of

Accepted Answer

A)  selling an asset for less than purchase price. 
B)  holding an asset that has appreciated. 
C)  selling an asset at the same price of purchase. 
D)  selling an asset for more than purchase price. 
E)  None of these. 
A)  selling an asset for less than purchase price. 
B)  holding an asset that has appreciated. 
C)  selling an asset at the same price of purchase. 
D)  selling an asset for more than purchase price. 
E)  None of these.

Question 7

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.
-When matching Social Security contributions,employers pay [the same | a lesser] amount of Social Security taxes as/than the employee.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

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.
-Christy lives by herself with her dog,Tex.She [can | cannot] use the Head of Household filing status.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

When a child qualifies as a dependent on her parent's return,the child cannot take a personal exemption for herself.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT one of the three basic categories for individual income?

Accepted Answer

A)  active income 
B)  passive income 
C)  gross income 
D)  portfolio income 
A)  active income 
B)  passive income 
C)  gross income 
D)  portfolio income

Question 12

As a single taxpayer with no dependents,one is generally eligible to file as "head of household."

Accepted Answer

A) True 
 B)False

Question 13

You are more likely to have your tax return audited if you work for a for-profit company,compared to a non-profit organization.

Accepted Answer

A) True 
 B)False

Question 14

George,from the previous problem,is single and his standard deduction for the year is $5,800.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized deductions?

Accepted Answer

($12,600 -

Question 15

Your average tax rate is your

Accepted Answer

A)  adjusted gross income divided by tax withheld. 
B)  adjusted gross income divided by tax liability. 
C)  tax liability divided by taxable income. 
D)  taxable income divided by tax withheld. 
E)  gross income divided by tax refund. 
A)  adjusted gross income divided by tax withheld. 
B)  adjusted gross income divided by tax liability. 
C)  tax liability divided by taxable income. 
D)  taxable income divided by tax withheld. 
E)  gross income divided by tax refund.

Question 16

Which of the following offer tax preparation services?

Accepted Answer

A)  National and local tax services 
B)  Certified Public Accountants (CPAs) 
C)  Enrolled Agents (EAs) 
D)  Tax Attorneys 
E)  All of the above can offer tax preparation services 
A)  National and local tax services 
B)  Certified Public Accountants (CPAs) 
C)  Enrolled Agents (EAs) 
D)  Tax Attorneys 
E)  All of the above can offer tax preparation services

Question 17

Dividends received from the stock you own will be taxable income.

Accepted Answer

A) True 
 B)False

Question 18

____ 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 19

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.
-Dividends received from stocks are known as [passive | portfolio] income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Itemized non-business expenses do not include

Accepted Answer

A)  charitable contributions. 
B)  state income taxes. 
C)  residential mortgage interest. 
D)  medical expenses. 
E)  life insurance premiums. 
A)  charitable contributions. 
B)  state income taxes. 
C)  residential mortgage interest. 
D)  medical expenses. 
E)  life insurance premiums.

You are preparing your own tax return.The least costly source for answering your questions would be

In 2011,the total Social Security tax was

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

Molly and Justin are considering contributing $5,000 to their favorite,tax deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to charity?

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2011.Assuming she does not remarry,in 2012 the only legal filing status for Molly will be

A capital gain is the result of

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. -Christy lives by herself with her dog,Tex.She [can | cannot] use the Head of Household filing status.

When a child qualifies as a dependent on her parent's return,the child cannot take a personal exemption for herself.

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

Which of the following is NOT one of the three basic categories for individual income?

As a single taxpayer with no dependents,one is generally eligible to file as "head of household."

You are more likely to have your tax return audited if you work for a for-profit company,compared to a non-profit organization.

George,from the previous problem,is single and his standard deduction for the year is $5,800.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized deductions?

Your average tax rate is your

Which of the following offer tax preparation services?

Dividends received from the stock you own will be taxable income.

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

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. -Dividends received from stocks are known as [passive | portfolio] income.

Itemized non-business expenses do not include

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

You are preparing your own tax return.The least costly source for answering your questions would be

In 2011,the total Social Security tax was

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

Molly and Justin are considering contributing $5,000 to their favorite,tax deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to charity?

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2011.Assuming she does not remarry,in 2012 the only legal filing status for Molly will be

A capital gain is the result of

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. -Christy lives by herself with her dog,Tex.She [can | cannot] use the Head of Household filing status.

When a child qualifies as a dependent on her parent's return,the child cannot take a personal exemption for herself.

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

Which of the following is NOT one of the three basic categories for individual income?

As a single taxpayer with no dependents,one is generally eligible to file as "head of household."

You are more likely to have your tax return audited if you work for a for-profit company,compared to a non-profit organization.

George,from the previous problem,is single and his standard deduction for the year is $5,800.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized deductions?

Your average tax rate is your

Which of the following offer tax preparation services?

Dividends received from the stock you own will be taxable income.

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

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. -Dividends received from stocks are known as [passive | portfolio] income.

Itemized non-business expenses do not include

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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