Question 1

Union dues, fees for tax return preparation, and other miscellaneous expenses are:

Accepted Answer

A)  not deductible. 
B)  fully deductible. 
C)  deductible for self-employed individuals only. 
D)  deductible for people in certain income categories. 
E)  deductible to the extent they exceed two percent of adjusted gross income. 
A)  not deductible. 
B)  fully deductible. 
C)  deductible for self-employed individuals only. 
D)  deductible for people in certain income categories. 
E)  deductible to the extent they exceed two percent of adjusted gross income.

Question 2

A person's filing status is affected by marital status and dependents.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would be deducted from gross income to obtain adjusted gross income?

Accepted Answer

A)  Alimony payments 
B)  Mortgage interest 
C)  Medical expenses 
D)  Foreign income exclusion 
E)  Charitable contributions 
A)  Alimony payments 
B)  Mortgage interest 
C)  Medical expenses 
D)  Foreign income exclusion 
E)  Charitable contributions

Question 4

Estimated quarterly tax payments must be made by people who:

Accepted Answer

A)  are employed in a foreign country. 
B)  receive dividends. 
C)  work for the government. 
D)  do not have adequate amounts withheld from income. 
E)  itemize deductions. 
A)  are employed in a foreign country. 
B)  receive dividends. 
C)  work for the government. 
D)  do not have adequate amounts withheld from income. 
E)  itemize deductions.

Question 5

An exemption affects a person's tax situation by:

Accepted Answer

A)  increasing the standard deduction. 
B)  increasing the taxpayer's marginal tax rate. 
C)  decreasing itemized deductions. 
D)  reducing the taxpayer's taxable income. 
E)  decreasing tax credits. 
A)  increasing the standard deduction. 
B)  increasing the taxpayer's marginal tax rate. 
C)  decreasing itemized deductions. 
D)  reducing the taxpayer's taxable income. 
E)  decreasing tax credits.

Question 6

Al Barkley is single and earns $40,000 in taxable income. He uses the following tax rate schedule to calculate the taxes he owes. What is Al's average tax rate?

Accepted Answer

A)  15.45% 
B)  18.27% 
C)  21.35% 
D)  23.87% 
E)  25.00% 
A)  15.45% 
B)  18.27% 
C)  21.35% 
D)  23.87% 
E)  25.00%

Question 7

A $2,000 deposit to a tax-deferred retirement account for a person in a 25 percent tax bracket would result in a reduced tax bill of:

Accepted Answer

A)  $2,000. 
B)  $1,500. 
C)  $1,200. 
D)  $500. 
E)  $300. 
A)  $2,000. 
B)  $1,500. 
C)  $1,200. 
D)  $500. 
E)  $300.

Question 8

Which form would an individual use who has less than $100,000 in taxable income from wages, salaries, tips, unemployment compensation, interest, or dividends, and who is married and does not itemize deductions?

Accepted Answer

A)  Form 1040X 
B)  Form 1040EZ 
C)  Form 1040A 
D)  Schedule A 
E)  Schedule E 
A)  Form 1040X 
B)  Form 1040EZ 
C)  Form 1040A 
D)  Schedule A 
E)  Schedule E

Question 9

What type of tax is imposed on the value of an individual's property at the time of his or her death?

Accepted Answer

A)  Inheritance 
B)  Excise 
C)  Gift 
D)  Personal property 
E)  Estate 
A)  Inheritance 
B)  Excise 
C)  Gift 
D)  Personal property 
E)  Estate

Question 10

A state may impose a personal property tax.

Accepted Answer

A) True 
 B)False

Question 11

Tax evasion is the use of illegal actions to reduce one's taxes.

Accepted Answer

A) True 
 B)False

Question 12

How is taxable income computed?

Accepted Answer

The answer of How is taxable income computed?...

Question 13

Mr. and Mrs. Keating want to give their son Dudley a total of $24,000. They each write him a check for $12,000 so they won't have to pay any gift tax. This is an example of:

Accepted Answer

A)  fraud. 
B)  tax evasion. 
C)  tax exclusion. 
D)  tax avoidance. 
E)  tax deferred income. 
A)  fraud. 
B)  tax evasion. 
C)  tax exclusion. 
D)  tax avoidance. 
E)  tax deferred income.

Question 14

When a taxpayer's income increases $1,000 and the taxes owed increases from $7,867 to $8,177, the marginal tax rate is ______ percent.

Accepted Answer

A)  15 
B)  20 
C)  25 
D)  28 
E)  31 
A)  15 
B)  20 
C)  25 
D)  28 
E)  31

Question 15

Maryellen Epplin worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her taxable income for the year. This represents a tax:

Accepted Answer

A)  deduction. 
B)  exclusion. 
C)  exemption. 
D)  credit. 
E)  refund. 
A)  deduction. 
B)  exclusion. 
C)  exemption. 
D)  credit. 
E)  refund.

Question 16

A ______ allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs.

Accepted Answer

A)  tax credit 
B)  tax deduction 
C)  flexible spending account 
D)  tax deferred investment 
E)  tax exempt investment 
A)  tax credit 
B)  tax deduction 
C)  flexible spending account 
D)  tax deferred investment 
E)  tax exempt investment

Question 17

The principal purpose of taxes is to control economic conditions.

Accepted Answer

A) True 
 B)False

Question 18

The main purpose of taxes is to:

Accepted Answer

A)  generate revenue for funding government programs. 
B)  reduce the chances of inflation. 
C)  create jobs. 
D)  discourage use of certain goods and services. 
E)  decrease competition from foreign companies. 
A)  generate revenue for funding government programs. 
B)  reduce the chances of inflation. 
C)  create jobs. 
D)  discourage use of certain goods and services. 
E)  decrease competition from foreign companies.

Question 19

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

Accepted Answer

A)  passive 
B)  earned 
C)  excluded 
D)  capital gain 
E)  investment 
A)  passive 
B)  earned 
C)  excluded 
D)  capital gain 
E)  investment

Question 20

Tax avoidance refers to illegal actions to reduce one's taxes.

Accepted Answer

A) True 
 B)False

Union dues, fees for tax return preparation, and other miscellaneous expenses are:

A person's filing status is affected by marital status and dependents.

Which of the following would be deducted from gross income to obtain adjusted gross income?

Estimated quarterly tax payments must be made by people who:

An exemption affects a person's tax situation by:

Al Barkley is single and earns $40,000 in taxable income. He uses the following tax rate schedule to calculate the taxes he owes. What is Al's average tax rate?

A $2,000 deposit to a tax-deferred retirement account for a person in a 25 percent tax bracket would result in a reduced tax bill of:

Which form would an individual use who has less than $100,000 in taxable income from wages, salaries, tips, unemployment compensation, interest, or dividends, and who is married and does not itemize deductions?

What type of tax is imposed on the value of an individual's property at the time of his or her death?

A state may impose a personal property tax.

Tax evasion is the use of illegal actions to reduce one's taxes.

How is taxable income computed?

Mr. and Mrs. Keating want to give their son Dudley a total of $24,000. They each write him a check for $12,000 so they won't have to pay any gift tax. This is an example of:

When a taxpayer's income increases $1,000 and the taxes owed increases from $7,867 to $8,177, the marginal tax rate is ______ percent.

Maryellen Epplin worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her taxable income for the year. This represents a tax:

A ______ allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs.

The principal purpose of taxes is to control economic conditions.

The main purpose of taxes is to:

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

Tax avoidance refers to illegal actions to reduce one's taxes.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 4: Planning Your Tax Strategy

Union dues, fees for tax return preparation, and other miscellaneous expenses are:

A person's filing status is affected by marital status and dependents.

Which of the following would be deducted from gross income to obtain adjusted gross income?

Estimated quarterly tax payments must be made by people who:

An exemption affects a person's tax situation by:

Al Barkley is single and earns $40,000 in taxable income. He uses the following tax rate schedule to calculate the taxes he owes. What is Al's average tax rate?

A $2,000 deposit to a tax-deferred retirement account for a person in a 25 percent tax bracket would result in a reduced tax bill of:

Which form would an individual use who has less than $100,000 in taxable income from wages, salaries, tips, unemployment compensation, interest, or dividends, and who is married and does not itemize deductions?

What type of tax is imposed on the value of an individual's property at the time of his or her death?

A state may impose a personal property tax.

Tax evasion is the use of illegal actions to reduce one's taxes.

How is taxable income computed?

Mr. and Mrs. Keating want to give their son Dudley a total of $24,000. They each write him a check for $12,000 so they won't have to pay any gift tax. This is an example of:

When a taxpayer's income increases $1,000 and the taxes owed increases from $7,867 to $8,177, the marginal tax rate is ______ percent.

Maryellen Epplin worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her taxable income for the year. This represents a tax:

A ______ allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs.

The principal purpose of taxes is to control economic conditions.

The main purpose of taxes is to:

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

Tax avoidance refers to illegal actions to reduce one's taxes.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters