Exam 3: Preparing Your Taxes

The alternative minimum tax is an issue only for high-income taxpayers.

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. -Federal income taxation is [progressive | regressive].

Itemized deductions could include certain taxes,medical expenditures,and home mortgage interest.

The amount of one personal exemption in 2011 was $3,700.

Social security taxes are deducted from all wages and salaries earned in a year.

All major software providers have online versions for preparing federal taxes. This software is

From the information given below,determine Steve's gross income for tax purposes:

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 will itemize your deductions.You [could | could not] use the 1040A.

The Federal personal income tax is a flat tax.

The standard deduction is a blanket deduction that depends on the taxpayers

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. -My son,age 21,earned $5,000 last year.He still lives at home,and I provide over 50% of his support.I [can | cannot] claim him as a dependent on my tax return if he is a full time college student.

Your take-home pay is what you are left with after subtracting withholdings from your

Mortgage interest and paid home property taxes are both itemized deduction items.

The Federal personal income tax is a progressive tax.

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 marital status [will | will not] have an effect on the amount of social security tax you pay.

Dwayne and Gayle were divorced September 29,have not remarried,and have no dependents.Their filing status for the year will each be "married" since they were married for more than half of the year.

If you have any earned income,you are required to file a tax return.

One's home must typically be owned at least three years to receive the most favorable capital gains treatment.

Connie is a 20 year old college student who earned $8,000 and spent it all on her support during the year.Her parents may claim her as a tax dependent as long as

Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2011 are as follows: How much would the Davenports' medical expenses contribute to their total itemized deductions?