Question 1

Fees,tips,and bonuses are forms of

Accepted Answer

A)  Adjusted gross income. 
B)  Earned income. 
C)  Exclusions from income. 
D)  Tax-deferred income. 
E)  Tax-exempt income. 
A)  Adjusted gross income. 
B)  Earned income. 
C)  Exclusions from income. 
D)  Tax-deferred income. 
E)  Tax-exempt income.

Question 2

The IRS has made online filing free for millions of taxpayers through the Free File Alliance.

Accepted Answer

A) True 
 B)False

Question 3

Using the following table,calculate the taxes for an individual with taxable income of $30,000.

Accepted Answer

A)  $850 
B)  $2,125 
C)  $4,075 
D)  $4,500 
E)  $6,025 
A)  $850 
B)  $2,125 
C)  $4,075 
D)  $4,500 
E)  $6,025

Question 4

Which of the following is NOT a tax credit?

Accepted Answer

A)  Adoption tax credit 
B)  Domestic tax credit 
C)  Earned income credit 
D)  Foreign tax credit 
E)  Retirement tax credit 
A)  Adoption tax credit 
B)  Domestic tax credit 
C)  Earned income credit 
D)  Foreign tax credit 
E)  Retirement tax credit

Question 5

Individuals can deduct expenses only in excess of 7.5% of adjusted gross income for

Accepted Answer

A)  Contributions to charitable organizations. 
B)  Mortgage interest. 
C)  Medical and dental expenses. 
D)  Miscellaneous expenses. 
E)  Taxes. 
A)  Contributions to charitable organizations. 
B)  Mortgage interest. 
C)  Medical and dental expenses. 
D)  Miscellaneous expenses. 
E)  Taxes.

Question 6

Identify at least five sections of Form 1040.

Accepted Answer

The following are all sections of Form 1

Question 7

When calculating federal income taxes,"income" includes all of the following categories except

Accepted Answer

A)  Earned income. 
B)  Alimony. 
C)  Investment income. 
D)  Active income. 
E)  Passive income. 
A)  Earned income. 
B)  Alimony. 
C)  Investment income. 
D)  Active income. 
E)  Passive income.

Question 8

At the end of the year,Yvonne received a form from her bank that reported income from her savings.That form is called a

Accepted Answer

A) 1040. 
B) 1099. 
C) W-2. 
D) W-4. 
E) Schedule A. 
A) 1040. 
B) 1099. 
C) W-2. 
D) W-4. 
E) Schedule A.

Question 9

When Marissa completes her taxes,she can include her children,her husband,and herself as exemptions.

Accepted Answer

A) True 
 B)False

Question 10

If Diane was in a 25% tax bracket and received a $1,000 tax credit,by how much would her taxes be reduced?

Accepted Answer

A)  $25 
B)  $50 
C)  $250 
D)  $500 
E)  $1,000 
A)  $25 
B)  $50 
C)  $250 
D)  $500 
E)  $1,000

Question 11

Using the following table,identify the following for an individual with taxable income of $90,000.
a.Total taxes paid.
b.Marginal tax rate.
c.Average tax rate.

Accepted Answer

@#IMG-DLM& Taxes paid = (10% × $8,500)+ {15% × ($3

Question 12

Stephen is planning to file taxes this year.He is married with two dependents.His household salary is relatively low.How should he file his tax forms?
 Why is that method appropriate for him?

Accepted Answer

Student answers may vary.Steph

Question 13

You may be required to make estimated tax payments if

Accepted Answer

A)  You receive a paycheck with taxes withheld. 
B)  You do not have interest income. 
C)  You are married. 
D)  You own a business. 
E)  All of these are correct. 
A)  You receive a paycheck with taxes withheld. 
B)  You do not have interest income. 
C)  You are married. 
D)  You own a business. 
E)  All of these are correct.

Question 14

At the end of the year,employees receive a ____ form that reports annual earnings and the amounts deducted for taxes from their employers.

Accepted Answer

A)  1040 
B)  1099 
C)  W-2 
D)  W-4 
E)  Schedule A 
A)  1040 
B)  1099 
C)  W-2 
D)  W-4 
E)  Schedule A

Question 15

If your taxes due are greater than the amount you had withheld for the year,you should expect a refund after you complete your federal income taxes.

Accepted Answer

A) True 
 B)False

Question 16

Jim is completing his federal income taxes for the year and has identified the amounts listed here.How much can he rightfully deduct?
• AGI: $100,000
• Medical and dental expenses: $7,000
• State income taxes: $7,500
• Mortgage interest: $14,500
• Charitable contributions: $4,000
• Miscellaneous expenses: $5,000

Accepted Answer

Deductions include these amounts: Medica

Question 17

Form 4868 allows a taxpayer to obtain a six-month extension on filing and paying federal taxes without penalty.

Accepted Answer

A) True 
 B)False

Question 18

Describe the calculation for adjusted gross income.

Accepted Answer

Adjusted gross income (AGI)is calculated

Question 19

All citizens of the United States are required to file a federal income tax return if their income falls below a certain level.

Accepted Answer

A) True 
 B)False

Question 20

Janet is completing her federal income taxes for the year and has identified the amounts listed here.How much can she rightfully deduct?
• AGI: $42,000
• Medical and dental expenses: $1,100
• State income taxes: $1,000
• Mortgage interest: $7,000
• Charitable contributions: $1,250

Accepted Answer

A)  $3,350 
B)  $7,000 
C)  $8,250 
D)  $9,250 
E)  $10,350 
A)  $3,350 
B)  $7,000 
C)  $8,250 
D)  $9,250 
E)  $10,350

Fees,tips,and bonuses are forms of

The IRS has made online filing free for millions of taxpayers through the Free File Alliance.

Using the following table,calculate the taxes for an individual with taxable income of $30,000.

Which of the following is NOT a tax credit?

Individuals can deduct expenses only in excess of 7.5% of adjusted gross income for

Identify at least five sections of Form 1040.

When calculating federal income taxes,"income" includes all of the following categories except

At the end of the year,Yvonne received a form from her bank that reported income from her savings.That form is called a

When Marissa completes her taxes,she can include her children,her husband,and herself as exemptions.

If Diane was in a 25% tax bracket and received a $1,000 tax credit,by how much would her taxes be reduced?

Using the following table,identify the following for an individual with taxable income of $90,000. a.Total taxes paid. b.Marginal tax rate. c.Average tax rate.

Stephen is planning to file taxes this year.He is married with two dependents.His household salary is relatively low.How should he file his tax forms? Why is that method appropriate for him?

You may be required to make estimated tax payments if

At the end of the year,employees receive a ____ form that reports annual earnings and the amounts deducted for taxes from their employers.

If your taxes due are greater than the amount you had withheld for the year,you should expect a refund after you complete your federal income taxes.

Form 4868 allows a taxpayer to obtain a six-month extension on filing and paying federal taxes without penalty.

Describe the calculation for adjusted gross income.

All citizens of the United States are required to file a federal income tax return if their income falls below a certain level.

Janet is completing her federal income taxes for the year and has identified the amounts listed here.How much can she rightfully deduct? • AGI: $42,000 • Medical and dental expenses: $1,100 • State income taxes: $1,000 • Mortgage interest: $7,000 • Charitable contributions: $1,250

Personal Financial Planning in Action

Money Management Skills

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 3: Taxes in Your Financial Plan

Fees,tips,and bonuses are forms of

The IRS has made online filing free for millions of taxpayers through the Free File Alliance.

Using the following table,calculate the taxes for an individual with taxable income of $30,000.

Which of the following is NOT a tax credit?

Individuals can deduct expenses only in excess of 7.5% of adjusted gross income for

Identify at least five sections of Form 1040.

When calculating federal income taxes,"income" includes all of the following categories except

At the end of the year,Yvonne received a form from her bank that reported income from her savings.That form is called a

When Marissa completes her taxes,she can include her children,her husband,and herself as exemptions.

If Diane was in a 25% tax bracket and received a $1,000 tax credit,by how much would her taxes be reduced?

Using the following table,identify the following for an individual with taxable income of $90,000. a.Total taxes paid. b.Marginal tax rate. c.Average tax rate.

Stephen is planning to file taxes this year.He is married with two dependents.His household salary is relatively low.How should he file his tax forms? Why is that method appropriate for him?

You may be required to make estimated tax payments if

At the end of the year,employees receive a ____ form that reports annual earnings and the amounts deducted for taxes from their employers.

If your taxes due are greater than the amount you had withheld for the year,you should expect a refund after you complete your federal income taxes.

Form 4868 allows a taxpayer to obtain a six-month extension on filing and paying federal taxes without penalty.

Describe the calculation for adjusted gross income.

All citizens of the United States are required to file a federal income tax return if their income falls below a certain level.

Janet is completing her federal income taxes for the year and has identified the amounts listed here.How much can she rightfully deduct? • AGI: $42,000 • Medical and dental expenses: $1,100 • State income taxes: $1,000 • Mortgage interest: $7,000 • Charitable contributions: $1,250

Personal Financial Planning in Action

Money Management Skills

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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