Exam 4: Managing Income Taxes

Judy Hays wants to give $3,200 to the building fund at her local church.Assuming Judy can itemize her deductions,how much will this contribution save her on her federal income taxes if she is in the 28 percent marginal tax bracket?

(Multiple Choice)

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Question 61

Which of the following types of taxes is deductible for federal income tax purposes?

(Multiple Choice)

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Question 62

Which tax form do you use to file an amended tax return for previous year?

(Multiple Choice)

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Question 63

The money you receive back because you have overpaid your taxes is called a tax return.

(True/False)

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Question 64

Which of the following persons is (are) practicing tax avoidance?

(Multiple Choice)

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Question 65

The lifetime learning credit may be claimed for tuition and related expenses only for the first two years of postsecondary school.

(True/False)

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Question 66

Tax-exempt income is most valuable to low-income taxpayers.

(True/False)

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Question 67

Tax avoidance is illegal whereas tax evasion is legal.

(True/False)

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Question 68

Numerous job-related expenses can potentially be deducted from federal income taxes as ____ expenses.

(Multiple Choice)

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Question 69

Tax planning includes eliminating,reducing or deferring income taxes to be paid.

(True/False)

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Question 70

The amount of the standard deduction depends on one's filing status.

(True/False)

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Question 71

Lucy and Max,ages 28 and 30,have earned income of $30,400 and adjusted gross income of $29,500,500.They spent $4,200 on child care for their young son so that they could both work part time and finish their college degrees.Which of the following tax credits could reduce their taxes?

(Multiple Choice)

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(71)

Question 72

Once you determine your gross income you may take several subtractions including adjustments,deductions,exemptions and credits to arrive at your actual taxable income.

(True/False)

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(86)

Question 73

You pay personal taxes on your calculated ____ income.

(Multiple Choice)

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Question 74

Interest income is reported to the recipient on a W-2 form.

(True/False)

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(82)

Question 75

Tax losses are created when deductions generated from an investment (such as depreciation and net investment losses) exceed the income from an investment.

(True/False)

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(87)

Question 76

Each year the tax brackets are adjusted to reduce the effects of inflation.

(True/False)

4.9/5

(68)

Question 77

Tax-deferred compounding refers to the tax-free growth of investments in a tax-deferred account.

(True/False)

4.9/5

(77)

Question 78

Taxes are defined as compulsory charges imposed by a government on its citizens and their property.

(True/False)

5.0/5

(82)

Question 79

The Internal Revenue Service is the agency that collects federal income taxes.

(True/False)

4.8/5

(70)

Question 80

Showing 61 - 80 of 201

Judy Hays wants to give $3,200 to the building fund at her local church.Assuming Judy can itemize her deductions,how much will this contribution save her on her federal income taxes if she is in the 28 percent marginal tax bracket?

Which of the following types of taxes is deductible for federal income tax purposes?

Which tax form do you use to file an amended tax return for previous year?

The money you receive back because you have overpaid your taxes is called a tax return.

Which of the following persons is (are) practicing tax avoidance?

The lifetime learning credit may be claimed for tuition and related expenses only for the first two years of postsecondary school.

Tax-exempt income is most valuable to low-income taxpayers.

Tax avoidance is illegal whereas tax evasion is legal.

Numerous job-related expenses can potentially be deducted from federal income taxes as ____ expenses.

Tax planning includes eliminating,reducing or deferring income taxes to be paid.

The amount of the standard deduction depends on one's filing status.

Lucy and Max,ages 28 and 30,have earned income of $30,400 and adjusted gross income of $29,500,500.They spent $4,200 on child care for their young son so that they could both work part time and finish their college degrees.Which of the following tax credits could reduce their taxes?

Once you determine your gross income you may take several subtractions including adjustments,deductions,exemptions and credits to arrive at your actual taxable income.

You pay personal taxes on your calculated ____ income.

Interest income is reported to the recipient on a W-2 form.

Tax losses are created when deductions generated from an investment (such as depreciation and net investment losses) exceed the income from an investment.

Each year the tax brackets are adjusted to reduce the effects of inflation.

Tax-deferred compounding refers to the tax-free growth of investments in a tax-deferred account.

Taxes are defined as compulsory charges imposed by a government on its citizens and their property.

The Internal Revenue Service is the agency that collects federal income taxes.

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