Question 1

You have up to three years after mailing your tax return to file an amended tax return (1040X).

Accepted Answer

A) True 
 B)False

Question 2

Gross income minus tax exempt income equals adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  IRS 800 numbers. 
B)  private preparation service. 
C)  tax accountant. 
D)  tax lawyer. 
E)  local post office. 
A)  IRS 800 numbers. 
B)  private preparation service. 
C)  tax accountant. 
D)  tax lawyer. 
E)  local post office.

Question 4

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Accepted Answer

A) True 
 B)False

Question 5

Itemized non-business expenses do not include

Accepted Answer

A)  charitable contributions. 
B)  state income taxes. 
C)  residential mortgage interest. 
D)  medical expenses. 
E)  life insurance premiums. 
A)  charitable contributions. 
B)  state income taxes. 
C)  residential mortgage interest. 
D)  medical expenses. 
E)  life insurance premiums.

Question 6

There is no limit on the amount of Social Security withheld annually.

Accepted Answer

A) True 
 B)False

Question 7

Mr.and Mrs.Sanborn are retired and have had several medical problems this year.Their financial matters for 2008 are as follows:   How much would the Sanborns' medical expenses contribute to their total itemized deductions?

Accepted Answer

A)  $ 0 
B)  $ 4,875 
C)  $ 7,500 
D)  $ 9,625 
E)  $14,500 
A)  $ 0 
B)  $ 4,875 
C)  $ 7,500 
D)  $ 9,625 
E)  $14,500

Question 8

Federal income taxes paid can be deducted the following year.

Accepted Answer

A) True 
 B)False

Question 9

____ income is gross income less tax deductions and payments for insurance and retirement savings.

Accepted Answer

A)  Take-home 
B)  EBIT 
C)  Adjusted gross 
D)  Taxable 
E)  Tax-exempt 
A)  Take-home 
B)  EBIT 
C)  Adjusted gross 
D)  Taxable 
E)  Tax-exempt

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-When one gives a child an income producing asset,one is [maximizing their deductions | income shifting].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 11

John and Charlotte are considering contributing $1,000 to their church.This contribution will bring their total itemized deductions to $2,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $1,000 to their church?

Accepted Answer

A)  $ 0 
B)  $ 150 
C)  $ 300 
D)  $ 500 
E)  $1,000 
A)  $ 0 
B)  $ 150 
C)  $ 300 
D)  $ 500 
E)  $1,000

Question 12

The amount of one personal exemption in 2011 was $3,700.

Accepted Answer

A) True 
 B)False

Question 13

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Your income tax filing status is determined primarily by your [income | marital] status.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The major source of revenue for the federal government is [income | Social Security] taxes.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 15

The proper name of the so-called short form is

Accepted Answer

A) 	Schedule A. 
B) 	Schedule B. 
C) 	1040. 
D)  1040A. 
E)  1040EZ. 
A) 	Schedule A. 
B) 	Schedule B. 
C) 	1040. 
D)  1040A. 
E)  1040EZ.

Question 16

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Earnings from real estate investments are an example of [active | passive] income.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 17

Typically state governments get most of their tax revenue from

Accepted Answer

A)  property taxes and excise taxes. 
B)  sales taxes and income taxes. 
C)  licensing fees and income taxes. 
D)  excise taxes and sales taxes. 
E)  income taxes and property taxes. 
A)  property taxes and excise taxes. 
B)  sales taxes and income taxes. 
C)  licensing fees and income taxes. 
D)  excise taxes and sales taxes. 
E)  income taxes and property taxes.

Question 18

Over 75% of the revenue received by the federal government is from ____ and ____ taxes.

Accepted Answer

A)  sales and income 
B)  income and excise 
C)  Social Security and estate 
D)  estate and sales 
E)  income and Social Security 
A)  sales and income 
B)  income and excise 
C)  Social Security and estate 
D)  estate and sales 
E)  income and Social Security

Question 19

The total amount that you owe for income tax in one year is your tax

Accepted Answer

A)  withholdings. 
B)  credit. 
C)  rate. 
D)  refund. 
E)  liability. 
A)  withholdings. 
B)  credit. 
C)  rate. 
D)  refund. 
E)  liability.

Question 20

The sale of your home will rarely result in a taxable capital gain.

Accepted Answer

A) True 
 B)False

You have up to three years after mailing your tax return to file an amended tax return (1040X).

Gross income minus tax exempt income equals adjusted gross income.

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

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Itemized non-business expenses do not include

There is no limit on the amount of Social Security withheld annually.

Mr.and Mrs.Sanborn are retired and have had several medical problems this year.Their financial matters for 2008 are as follows: How much would the Sanborns' medical expenses contribute to their total itemized deductions?

Federal income taxes paid can be deducted the following year.

____ income is gross income less tax deductions and payments for insurance and retirement savings.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -When one gives a child an income producing asset,one is [maximizing their deductions | income shifting].

John and Charlotte are considering contributing $1,000 to their church.This contribution will bring their total itemized deductions to $2,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $1,000 to their church?

The amount of one personal exemption in 2011 was $3,700.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your income tax filing status is determined primarily by your [income | marital] status.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The major source of revenue for the federal government is [income | Social Security] taxes.

The proper name of the so-called short form is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Earnings from real estate investments are an example of [active | passive] income.

Typically state governments get most of their tax revenue from

Over 75% of the revenue received by the federal government is from and taxes.

The total amount that you owe for income tax in one year is your tax

The sale of your home will rarely result in a taxable capital gain.

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

Planning for Retirement

Preserving Your Estate

Filters

Exam 3: Preparing Your Taxes

You have up to three years after mailing your tax return to file an amended tax return (1040X).

Gross income minus tax exempt income equals adjusted gross income.

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

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Itemized non-business expenses do not include

There is no limit on the amount of Social Security withheld annually.

Mr.and Mrs.Sanborn are retired and have had several medical problems this year.Their financial matters for 2008 are as follows: How much would the Sanborns' medical expenses contribute to their total itemized deductions?

Federal income taxes paid can be deducted the following year.

____ income is gross income less tax deductions and payments for insurance and retirement savings.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -When one gives a child an income producing asset,one is [maximizing their deductions | income shifting].

John and Charlotte are considering contributing $1,000 to their church.This contribution will bring their total itemized deductions to $2,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $1,000 to their church?

The amount of one personal exemption in 2011 was $3,700.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your income tax filing status is determined primarily by your [income | marital] status.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The major source of revenue for the federal government is [income | Social Security] taxes.

The proper name of the so-called short form is

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Earnings from real estate investments are an example of [active | passive] income.

Typically state governments get most of their tax revenue from

Over 75% of the revenue received by the federal government is from ____ and ____ taxes.

The total amount that you owe for income tax in one year is your tax

The sale of your home will rarely result in a taxable capital gain.

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

Planning for Retirement

Preserving Your Estate

Filters

Over 75% of the revenue received by the federal government is from and taxes.