Question 1

Michael closed on his new home December 31, 2009 instead of January 1, 2010. As a result, Michael:

Accepted Answer

A)  accelerated tax deductions in 2009. 
B)  accelerated tax deductions in 2010. 
C)  increased his adjusted gross income in 2009. 
D)  decreased his adjusted gross income in 2010. 
E)  decreased tax exemptions in 2009. 
A)  accelerated tax deductions in 2009. 
B)  accelerated tax deductions in 2010. 
C)  increased his adjusted gross income in 2009. 
D)  decreased his adjusted gross income in 2010. 
E)  decreased tax exemptions in 2009.

Question 2

A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is:

Accepted Answer

A)  the standard deduction. 
B)  a tax credit. 
C)  an itemized deduction. 
D)  an exclusion. 
E)  an exemption. 
A)  the standard deduction. 
B)  a tax credit. 
C)  an itemized deduction. 
D)  an exclusion. 
E)  an exemption.

Question 3

For which of the following types of credit plans is the interest tax deductible?

Accepted Answer

A)  Home equity loan 
B)  Auto loan 
C)  Credit card 
D)  Life insurance policy cash value loan 
E)  Personal cash loan from a credit union 
A)  Home equity loan 
B)  Auto loan 
C)  Credit card 
D)  Life insurance policy cash value loan 
E)  Personal cash loan from a credit union

Question 4

A person has $4,000 in medical expenses and an adjusted gross income of $32,000. If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5 percent of adjusted gross income, what would be the amount of the deduction in this situation?

Accepted Answer

A)  $300 
B)  $1,600 
C)  $2,400 
D)  $4,000 
E)  $32,000 
A)  $300 
B)  $1,600 
C)  $2,400 
D)  $4,000 
E)  $32,000

Question 5

A tax on the value of automobiles, boats, or furniture is referred to as:

Accepted Answer

A)  inheritance tax. 
B)  estate tax. 
C)  personal property tax. 
D)  excise tax. 
E)  general sales tax. 
A)  inheritance tax. 
B)  estate tax. 
C)  personal property tax. 
D)  excise tax. 
E)  general sales tax.

Question 6

Why would tax-exempt income provide greater short-term financial benefits than tax-deferred income?

Accepted Answer

The answer of Why would tax-exempt income provide greater short-term...

Question 7

The "head of household" filing status is for people who are:

Accepted Answer

A)  recently divorced. 
B)  the surviving spouse. 
C)  unmarried and have dependent children. 
D)  married but only one spouse has income. 
E)  married and each spouse makes about the same income. 
A)  recently divorced. 
B)  the surviving spouse. 
C)  unmarried and have dependent children. 
D)  married but only one spouse has income. 
E)  married and each spouse makes about the same income.

Question 8

Most people pay federal income tax by:

Accepted Answer

A)  paying the total amount owed on April 15. 
B)  filing quarterly tax payments. 
C)  having amounts withheld from income. 
D)  earning tax credits for various deductions. 
E)  filing the 1040 EZ form. 
A)  paying the total amount owed on April 15. 
B)  filing quarterly tax payments. 
C)  having amounts withheld from income. 
D)  earning tax credits for various deductions. 
E)  filing the 1040 EZ form.

Michael closed on his new home December 31, 2009 instead of January 1, 2010. As a result, Michael:

A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is:

For which of the following types of credit plans is the interest tax deductible?

A person has $4,000 in medical expenses and an adjusted gross income of $32,000. If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5 percent of adjusted gross income, what would be the amount of the deduction in this situation?

A tax on the value of automobiles, boats, or furniture is referred to as:

Why would tax-exempt income provide greater short-term financial benefits than tax-deferred income?

The "head of household" filing status is for people who are:

Most people pay federal income tax by:

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

Michael closed on his new home December 31, 2009 instead of January 1, 2010. As a result, Michael:

A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is:

For which of the following types of credit plans is the interest tax deductible?

A person has $4,000 in medical expenses and an adjusted gross income of $32,000. If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5 percent of adjusted gross income, what would be the amount of the deduction in this situation?

A tax on the value of automobiles, boats, or furniture is referred to as:

Why would tax-exempt income provide greater short-term financial benefits than tax-deferred income?

The "head of household" filing status is for people who are:

Most people pay federal income tax by:

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