Question 1

You should itemize deductions when total itemized deductions exceed the standard deduction.

Accepted Answer

A) True 
 B)False

Question 2

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 are claimed as a dependent on your parents' tax return,you [may also | may not] claim yourself on your tax return.

Accepted Answer

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

Question 3

The proper name of the so-called short form is

Accepted Answer

A)  Schedule A. 
B)  Schedule B. 
C)  1040. 
D)  1040A. 
E)  1040EZ. 
A)  Schedule A. 
B)  Schedule B. 
C)  1040. 
D)  1040A. 
E)  1040EZ.

Question 4

Most states generate the majority of their revenues from property taxes.

Accepted Answer

A) True 
 B)False

Question 5

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.
-There is a [high | low] chance that one's tax return will be audited in a given year.

Accepted Answer

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

Question 6

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.
-Interest you paid on your [car | house] loan could be deducted.

Accepted Answer

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

Question 7

For 2011,each personal exemption reduced taxable income by

Accepted Answer

A)  $2,800 
B)  $3,000 
C)  $3,700 
D)  $3,900 
E)  $4,000 
A)  $2,800 
B)  $3,000 
C)  $3,700 
D)  $3,900 
E)  $4,000

Question 8

Local governments get most of their tax revenue from

Accepted Answer

A)  property taxes. 
B)  sales taxes. 
C)  licensing fees. 
D)  excise taxes. 
E)  income taxes. 
A)  property taxes. 
B)  sales taxes. 
C)  licensing fees. 
D)  excise taxes. 
E)  income taxes.

Question 9

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 tax year corresponds to the [April 15 filing deadline | calendar year].

Accepted Answer

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

Question 10

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 11

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.
-Major software providers have online versions for preparing federal taxes which is [free to all tax filers | free to qualified tax filers].

Accepted Answer

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

Question 12

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

Accepted Answer

A)  $ 500 
B)  $1,500 
C)  $2,000 
D)  $2,500 
E)  $3,000 
A)  $ 500 
B)  $1,500 
C)  $2,000 
D)  $2,500 
E)  $3,000

Question 13

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 14

You purchased and lived in your home 8 years.Now you have received an excellent promotion,but you will have to sell your home and move to another community.The capital gains on the home sold will

Accepted Answer

A)  be taxable as ordinary income. 
B)  be taxable at the 15% tax bracket. 
C)  be taxable at the appropriate long-term capital gains rate. 
D)  not be taxable because the home was your principal residence. 
E)  not be taxable because this is a job-related move. 
A)  be taxable as ordinary income. 
B)  be taxable at the 15% tax bracket. 
C)  be taxable at the appropriate long-term capital gains rate. 
D)  not be taxable because the home was your principal residence. 
E)  not be taxable because this is a job-related move.

Question 15

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 Choose the word or phrase in [...

Question 16

A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments.

Accepted Answer

A) True 
 B)False

Question 17

Tax evasion is a legal means to avoid tax liabilities.

Accepted Answer

A) True 
 B)False

Question 18

To qualify for the capital gain exclusion on a home sale,the seller must have resided in the residence for ___ of the previous 5 years.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
E)  5 
A)  1 
B)  2 
C)  3 
D)  4 
E)  5

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.
-Your tax filing status [would | would not] be a factor in determining the amount of standard deduction you could take.

Accepted Answer

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

Question 20

An investment must be owned over two years in order to qualify for long-term capital gains treatment.

Accepted Answer

A) True 
 B)False

You should itemize deductions when total itemized deductions exceed the standard deduction.

The proper name of the so-called short form is

Most states generate the majority of their revenues from property taxes.

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. -There is a [high | low] chance that one's tax return will be audited in a given year.

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. -Interest you paid on your [car | house] loan could be deducted.

For 2011,each personal exemption reduced taxable income by

Local governments get most of their tax revenue from

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 tax year corresponds to the [April 15 filing deadline | calendar year].

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

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

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

You purchased and lived in your home 8 years.Now you have received an excellent promotion,but you will have to sell your home and move to another community.The capital gains on the home sold will

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.

A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments.

Tax evasion is a legal means to avoid tax liabilities.

To qualify for the capital gain exclusion on a home sale,the seller must have resided in the residence for ___ of the previous 5 years.

An investment must be owned over two years in order to qualify for long-term capital gains treatment.

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 should itemize deductions when total itemized deductions exceed the standard deduction.

The proper name of the so-called short form is

Most states generate the majority of their revenues from property taxes.

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. -There is a [high | low] chance that one's tax return will be audited in a given year.

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. -Interest you paid on your [car | house] loan could be deducted.

For 2011,each personal exemption reduced taxable income by

Local governments get most of their tax revenue from

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 tax year corresponds to the [April 15 filing deadline | calendar year].

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

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

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

You purchased and lived in your home 8 years.Now you have received an excellent promotion,but you will have to sell your home and move to another community.The capital gains on the home sold will

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.

A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments.

Tax evasion is a legal means to avoid tax liabilities.

To qualify for the capital gain exclusion on a home sale,the seller must have resided in the residence for ___ of the previous 5 years.

An investment must be owned over two years in order to qualify for long-term capital gains treatment.

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