Question 1

Anne had earnings from her salary of $40,000 and a contribution to a registered retirement saving plan of $1,500.Anne's' net income would be

Accepted Answer

A) $39,250. 
B) $40,000. 
C) $39,300. 
D) $38,500. 
E) $41,500. 
A) $39,250. 
B) $40,000. 
C) $39,300. 
D) $38,500. 
E) $41,500.

Question 2

Most people pay federal income tax by

Accepted Answer

A) paying the total amount owed by April 15. 
B) filing quarterly tax payments. 
C) having amounts withheld from source. 
D) earning tax credits for various deductions. 
E) cashing in their saving. 
A) paying the total amount owed by April 15. 
B) filing quarterly tax payments. 
C) having amounts withheld from source. 
D) earning tax credits for various deductions. 
E) cashing in their saving.

Question 3

____________ are expenses that a taxpayer is allowed to deduct from total income.

Accepted Answer

A) Exemptions 
B) Exclusions 
C) Deductions 
D) Tax credits 
E) Passive income 
A) Exemptions 
B) Exclusions 
C) Deductions 
D) Tax credits 
E) Passive income

Question 4

What is step 4 in computing taxable income and your tax liability?

Accepted Answer

A) Determine total income 
B) Calculate net income 
C) Calculating taxable income 
D) Calculate federal taxes owing 
E) Calculating Net Federal Taxes 
A) Determine total income 
B) Calculate net income 
C) Calculating taxable income 
D) Calculate federal taxes owing 
E) Calculating Net Federal Taxes

Question 5

Jennifer made $2,000 worth of charitable donations.Her total income is $36,000 and she is in the 22% federal tax bracket.What is her charitable donations tax credit?

Accepted Answer

A) $320 
B) $440 
C) $552 
D) $2,000 
E) $5,760 
A) $320 
B) $440 
C) $552 
D) $2,000 
E) $5,760

Question 6

What is the marginal federal tax rate as of 2016 for an income of $60,000

Accepted Answer

A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33% 
A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33%

Question 7

Money received in the form of dividends or interest is ____________ income.

Accepted Answer

A) business income 
B) earned or employment 
C) excluded 
D) capital gain 
E) investment 
A) business income 
B) earned or employment 
C) excluded 
D) capital gain 
E) investment

Question 8

Which of the following is an example of a tax credit?

Accepted Answer

A) mortgage interest 
B) amounts withheld for social insurance 
C) individual retirement account contributions 
D) caregiver and medical expenses 
E) net business income 
A) mortgage interest 
B) amounts withheld for social insurance 
C) individual retirement account contributions 
D) caregiver and medical expenses 
E) net business income

Question 9

The use of legitimate methods to reduce one's taxes is tax ____________.

Accepted Answer

A) evasion 
B) avoidance 
C) exemptions 
D) deferred techniques 
E) reductions 
A) evasion 
B) avoidance 
C) exemptions 
D) deferred techniques 
E) reductions

Question 10

Chelsea had earnings from her salary of $50,000, interest on savings of $2,000, and a contribution to a registered retirement saving plan of $2,000.Chelsea's net income would be

Accepted Answer

A) $50,000. 
B) $48,000. 
C) $52,000. 
D) $46,000. 
E) $49,500. 
A) $50,000. 
B) $48,000. 
C) $52,000. 
D) $46,000. 
E) $49,500.

Question 11

Richard sold $20,000 worth of stocks that were purchased one year ago for $18,000.He is in a 22% tax bracket.Jack's capital gains taxes are:

Accepted Answer

A) $220. 
B) $440. 
C) $2,000. 
D) $110. 
E) there is no tax on capital gains. 
A) $220. 
B) $440. 
C) $2,000. 
D) $110. 
E) there is no tax on capital gains.

Question 12

Several courses of appeal are available to taxpayers who disagree with a revenue service ruling on their tax return audit.

Accepted Answer

A) True 
 B)False

Question 13

Your province of residency is determined by your residency on what date?

Accepted Answer

A) January 1 
B) Your birthday 
C) April 30 
D) December 31 
E) July 1 
A) January 1 
B) Your birthday 
C) April 30 
D) December 31 
E) July 1

Question 14

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

Accepted Answer

A) True 
 B)False

Question 15

Jack sold $20,000 worth of stocks that were purchased one year ago for $15,000.He is in a 22% tax bracket.Jack's capital gains taxes are:

Accepted Answer

A) $500. 
B) $550. 
C) $1,100. 
D) $2,500. 
E) $4,400. 
A) $500. 
B) $550. 
C) $1,100. 
D) $2,500. 
E) $4,400.

Question 16

Which of the following would result in a reduction of taxable income?

Accepted Answer

A) portfolio income 
B) tax credits 
C) union dues 
D) business income 
E) earned income 
A) portfolio income 
B) tax credits 
C) union dues 
D) business income 
E) earned income

Question 17

Which of the following would be excluded from total income to obtain net income?

Accepted Answer

A) contributions to RPPs 
B) mortgage interest 
C) child support payments 
D) foreign income exclusion 
E) charitable contributions 
A) contributions to RPPs 
B) mortgage interest 
C) child support payments 
D) foreign income exclusion 
E) charitable contributions

Question 18

Increases in the value of assets since their original purchase date such as: stocks, bonds, and real estate.

Accepted Answer

A) Employment 
B) Net business 
C) Investment 
D) Capital gains 
E) Other 
A) Employment 
B) Net business 
C) Investment 
D) Capital gains 
E) Other

Question 19

How many days after the end of the year are you allowed to still contribute to an RRSP and still claim it for the most recent take year?

Accepted Answer

A) 15 
B) 30 
C) 45 
D) 60 
E) 90 
A) 15 
B) 30 
C) 45 
D) 60 
E) 90

Question 20

Jeffrey is a self-employed carpenter.He bills his clients $60,000 a year.Total business expenses amount to $10,000 a year.His only eligible income tax deduction is $5,000 for an RRSP contribution.If the first $36,000 of taxable income is taxed by the Federal Government at a rate of 15% and levels up to approximately $70,000 are taxed at 22%, what is his federal tax liability before considering tax credits?

Accepted Answer

A) $5,760 
B) $6,750 
C) $7,380 
D) $9,900 
E) $12,500 
A) $5,760 
B) $6,750 
C) $7,380 
D) $9,900 
E) $12,500

Anne had earnings from her salary of $40,000 and a contribution to a registered retirement saving plan of $1,500.Anne's' net income would be

Most people pay federal income tax by

____________ are expenses that a taxpayer is allowed to deduct from total income.

What is step 4 in computing taxable income and your tax liability?

Jennifer made $2,000 worth of charitable donations.Her total income is $36,000 and she is in the 22% federal tax bracket.What is her charitable donations tax credit?

What is the marginal federal tax rate as of 2016 for an income of $60,000

Money received in the form of dividends or interest is ____________ income.

Which of the following is an example of a tax credit?

The use of legitimate methods to reduce one's taxes is tax ____________.

Chelsea had earnings from her salary of $50,000, interest on savings of $2,000, and a contribution to a registered retirement saving plan of $2,000.Chelsea's net income would be

Richard sold $20,000 worth of stocks that were purchased one year ago for $18,000.He is in a 22% tax bracket.Jack's capital gains taxes are:

Several courses of appeal are available to taxpayers who disagree with a revenue service ruling on their tax return audit.

Your province of residency is determined by your residency on what date?

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

Jack sold $20,000 worth of stocks that were purchased one year ago for $15,000.He is in a 22% tax bracket.Jack's capital gains taxes are:

Which of the following would result in a reduction of taxable income?

Which of the following would be excluded from total income to obtain net income?

Increases in the value of assets since their original purchase date such as: stocks, bonds, and real estate.

How many days after the end of the year are you allowed to still contribute to an RRSP and still claim it for the most recent take year?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 3: Planning Your Tax Strategy

Anne had earnings from her salary of $40,000 and a contribution to a registered retirement saving plan of $1,500.Anne's' net income would be

Most people pay federal income tax by

____________ are expenses that a taxpayer is allowed to deduct from total income.

What is step 4 in computing taxable income and your tax liability?

Jennifer made $2,000 worth of charitable donations.Her total income is $36,000 and she is in the 22% federal tax bracket.What is her charitable donations tax credit?

What is the marginal federal tax rate as of 2016 for an income of $60,000

Money received in the form of dividends or interest is ____________ income.

Which of the following is an example of a tax credit?

The use of legitimate methods to reduce one's taxes is tax ____________.

Chelsea had earnings from her salary of $50,000, interest on savings of $2,000, and a contribution to a registered retirement saving plan of $2,000.Chelsea's net income would be

Richard sold $20,000 worth of stocks that were purchased one year ago for $18,000.He is in a 22% tax bracket.Jack's capital gains taxes are:

Several courses of appeal are available to taxpayers who disagree with a revenue service ruling on their tax return audit.

Your province of residency is determined by your residency on what date?

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

Jack sold $20,000 worth of stocks that were purchased one year ago for $15,000.He is in a 22% tax bracket.Jack's capital gains taxes are:

Which of the following would result in a reduction of taxable income?

Which of the following would be excluded from total income to obtain net income?

Increases in the value of assets since their original purchase date such as: stocks, bonds, and real estate.

How many days after the end of the year are you allowed to still contribute to an RRSP and still claim it for the most recent take year?

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters