Question 1

Which of the following is subject to federal income tax?

Accepted Answer

A) The tax credit earnings on a Roth IRA 
B) Municipal bond interest 
C) Child-support payments 
D) Alimony received 
E) Personal exemptions 
A) The tax credit earnings on a Roth IRA 
B) Municipal bond interest 
C) Child-support payments 
D) Alimony received 
E) Personal exemptions

Question 2

A married couple filing a joint return has Ms.Cindy Cook,a CPA,complete their return.The IRS will hold only Ms.Cook responsible for any errors in the filed return.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) they provide more than half of the amount she needs to support herself during the year. 
B) she is under 21. 
C) she makes under $10,000. 
D) she lives at home. 
E) she does not get her Social Security number. 
A) they provide more than half of the amount she needs to support herself during the year. 
B) she is under 21. 
C) she makes under $10,000. 
D) she lives at home. 
E) she does not get her Social Security number.

Question 4

Tax evasion is a legal means to avoid tax liabilities.

Accepted Answer

A) True 
 B)False

Question 5

Christy lives by herself with her dog,Tex.Her filing status should be ____________. ​

Accepted Answer

A) head of household 
B) qualifying widow 
C) single 
D) married filing separately 
A) head of household 
B) qualifying widow 
C) single 
D) married filing separately

Question 6

Russ and Lois got married on December 30.Even though they were single for most part of the year,they can legally file as married filing jointly taxpayers in the year of the wedding.

Accepted Answer

A) True 
 B)False

Question 7

Peter's tax computed as per the tax rate schedule amounts to $2,000,and his tax credits amount to $500.His total tax liability is _____.

Accepted Answer

A) $2,500 
B) $1,500 
C) $3,000 
D) $2,200 
E) $4,000 
A) $2,500 
B) $1,500 
C) $3,000 
D) $2,200 
E) $4,000

Question 8

Tax practitioners who are federally licensed are called:

Accepted Answer

A) certified public accountants. 
B) certified financial planners. 
C) tax attorneys. 
D) enrolled agents. 
E) chartered financial analysts. 
A) certified public accountants. 
B) certified financial planners. 
C) tax attorneys. 
D) enrolled agents. 
E) chartered financial analysts.

Question 9

What is the maximum amount of adoption tax credit available for an individual?

Accepted Answer

A) $10,000 
B) $13,400 
C) 10 percent of the adjusted gross income 
D) 15 percent of the adjusted gross income 
E) $25,000 
A) $10,000 
B) $13,400 
C) 10 percent of the adjusted gross income 
D) 15 percent of the adjusted gross income 
E) $25,000

Question 10

If you are a professional who is likely to receive income that is not subject to withholding,then you are required to _____.

Accepted Answer

A) pay an estimated tax 
B) file an amended return 
C) file an extension 
D) deduct tax credit 
E) calculate itemized deductions 
A) pay an estimated tax 
B) file an amended return 
C) file an extension 
D) deduct tax credit 
E) calculate itemized deductions

Question 11

Mr.and Mrs.Davenport,aged 40 and 38,respectively,have three children aged 3,6,and 13.Their financial details for 2015 are as follows: Adjusted gross income (AGI)- $65,000
Unreimbursed medical expenses - $6,750
The Davenports' claim for itemized deductions for medical expenses is _____.

Accepted Answer

A) $0 
B) $250 
C) 3,500 
D) $2,750 
E) $4,500 
A) $0 
B) $250 
C) 3,500 
D) $2,750 
E) $4,500

Question 12

Molly and Justin are considering contributing $5,000 to a tax-deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing the $5,000 to charity?

Accepted Answer

A) $0 
B) $840 
C) $1,400 
D) $5,600 
E) $5,000 
A) $0 
B) $840 
C) $1,400 
D) $5,600 
E) $5,000

Question 13

A declaration of estimated taxes is made in:

Accepted Answer

A) Schedule B. 
B) Form 1040EZ. 
C) Schedule Z. 
D) Form 1040-ES. 
E) Form 1040 A. 
A) Schedule B. 
B) Form 1040EZ. 
C) Schedule Z. 
D) Form 1040-ES. 
E) Form 1040 A.

Question 14

Personal income taxes are:

Accepted Answer

A) optional. 
B) regressive. 
C) progressive. 
D) deductible. 
E) unconditional. 
A) optional. 
B) regressive. 
C) progressive. 
D) deductible. 
E) unconditional.

Question 15

Molly and Jason were married.Their only dependent was Spot,their black standard poodle.Jason died in 2014.Assuming Molly does not remarry,the only legal filing status for Molly in 2015 will be:

Accepted Answer

A) single. 
B) married filing separately. 
C) head of household. 
D) qualifying widow. 
E) married filing jointly. 
A) single. 
B) married filing separately. 
C) head of household. 
D) qualifying widow. 
E) married filing jointly.

Question 16

Mandi and Thomas were married and had a child aged 7 in 2014.Mandi died in 2014,leaving Thomas a single parent.The most favorable filing status for Thomas in 2015 will be:

Accepted Answer

A) single. 
B) married filing separately. 
C) head of household. 
D) qualifying widower. 
E) married filing jointly. 
A) single. 
B) married filing separately. 
C) head of household. 
D) qualifying widower. 
E) married filing jointly.

Question 17

A tax credit could result from ____________. ​

Accepted Answer

A) owning a home 
B) adopting a child 
C) charitable contributions 
D) investing in municipal bonds 
A) owning a home 
B) adopting a child 
C) charitable contributions 
D) investing in municipal bonds

Question 18

Which of the following private tax preparers are required to pass an exam administered by the Internal Revenue Service (IRS)?

Accepted Answer

A) National and local tax services 
B) Certified public accountants (CPAs) 
C) Enrolled agents (EAs) 
D) Tax attorneys 
E) Corporate managers 
A) National and local tax services 
B) Certified public accountants (CPAs) 
C) Enrolled agents (EAs) 
D) Tax attorneys 
E) Corporate managers

Question 19

Diana sold mutual fund shares,which she had owned for 4 years,so that she could use the proceeds to travel across Europe with her son.Diana is in the 35 percent marginal tax bracket,and her capital gains from the sale were $30,000.Diana's tax liability on the gain is _____.

Accepted Answer

A) $10,500 
B) $8,400 
C) $6,000 
D) $4,500 
E) $1,500 
A) $10,500 
B) $8,400 
C) $6,000 
D) $4,500 
E) $1,500

Question 20

You are preparing your own tax return.The least costly source for getting your questions answered would be:

Accepted Answer

A) the IRS office toll-free number. 
B) an enrolled agent. 
C) a tax accountant. 
D) a tax lawyer. 
E) the local post office. 
A) the IRS office toll-free number. 
B) an enrolled agent. 
C) a tax accountant. 
D) a tax lawyer. 
E) the local post office.

Which of the following is subject to federal income tax?

A married couple filing a joint return has Ms.Cindy Cook,a CPA,complete their return.The IRS will hold only Ms.Cook responsible for any errors in the filed return.

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

Tax evasion is a legal means to avoid tax liabilities.

Christy lives by herself with her dog,Tex.Her filing status should be ____________.

Russ and Lois got married on December 30.Even though they were single for most part of the year,they can legally file as married filing jointly taxpayers in the year of the wedding.

Peter's tax computed as per the tax rate schedule amounts to $2,000,and his tax credits amount to $500.His total tax liability is _____.

Tax practitioners who are federally licensed are called:

What is the maximum amount of adoption tax credit available for an individual?

If you are a professional who is likely to receive income that is not subject to withholding,then you are required to _____.

Mr.and Mrs.Davenport,aged 40 and 38,respectively,have three children aged 3,6,and 13.Their financial details for 2015 are as follows: Adjusted gross income (AGI)- $65,000 Unreimbursed medical expenses - $6,750 The Davenports' claim for itemized deductions for medical expenses is _____.

Molly and Justin are considering contributing $5,000 to a tax-deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing the $5,000 to charity?

A declaration of estimated taxes is made in:

Personal income taxes are:

Molly and Jason were married.Their only dependent was Spot,their black standard poodle.Jason died in 2014.Assuming Molly does not remarry,the only legal filing status for Molly in 2015 will be:

Mandi and Thomas were married and had a child aged 7 in 2014.Mandi died in 2014,leaving Thomas a single parent.The most favorable filing status for Thomas in 2015 will be:

A tax credit could result from ____________.

Which of the following private tax preparers are required to pass an exam administered by the Internal Revenue Service (IRS)?

Diana sold mutual fund shares,which she had owned for 4 years,so that she could use the proceeds to travel across Europe with her son.Diana is in the 35 percent marginal tax bracket,and her capital gains from the sale were $30,000.Diana's tax liability on the gain is _____.

You are preparing your own tax return.The least costly source for getting your questions answered would be:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 3: Preparing Your Taxes

Which of the following is subject to federal income tax?

A married couple filing a joint return has Ms.Cindy Cook,a CPA,complete their return.The IRS will hold only Ms.Cook responsible for any errors in the filed return.

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

Tax evasion is a legal means to avoid tax liabilities.

Christy lives by herself with her dog,Tex.Her filing status should be ____________. ​

Russ and Lois got married on December 30.Even though they were single for most part of the year,they can legally file as married filing jointly taxpayers in the year of the wedding.

Peter's tax computed as per the tax rate schedule amounts to $2,000,and his tax credits amount to $500.His total tax liability is _____.

Tax practitioners who are federally licensed are called:

What is the maximum amount of adoption tax credit available for an individual?

If you are a professional who is likely to receive income that is not subject to withholding,then you are required to _____.

Mr.and Mrs.Davenport,aged 40 and 38,respectively,have three children aged 3,6,and 13.Their financial details for 2015 are as follows: Adjusted gross income (AGI)- $65,000 Unreimbursed medical expenses - $6,750 The Davenports' claim for itemized deductions for medical expenses is _____.

Molly and Justin are considering contributing $5,000 to a tax-deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing the $5,000 to charity?

A declaration of estimated taxes is made in:

Personal income taxes are:

Molly and Jason were married.Their only dependent was Spot,their black standard poodle.Jason died in 2014.Assuming Molly does not remarry,the only legal filing status for Molly in 2015 will be:

Mandi and Thomas were married and had a child aged 7 in 2014.Mandi died in 2014,leaving Thomas a single parent.The most favorable filing status for Thomas in 2015 will be:

A tax credit could result from ____________. ​

Which of the following private tax preparers are required to pass an exam administered by the Internal Revenue Service (IRS)?

Diana sold mutual fund shares,which she had owned for 4 years,so that she could use the proceeds to travel across Europe with her son.Diana is in the 35 percent marginal tax bracket,and her capital gains from the sale were $30,000.Diana's tax liability on the gain is _____.

You are preparing your own tax return.The least costly source for getting your questions answered would be:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Christy lives by herself with her dog,Tex.Her filing status should be ____________.

A tax credit could result from ____________.