Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The highest marginal tax rate is currently [35% | 28%].

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 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The tax year corresponds to the [April 15 filing deadline | calendar year].

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 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Interest you paid on your [car | house] loan could be deducted.

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 4

If you earn less than $15,000,you probably pay more in social security taxes than in federal income taxes.

Accepted Answer

A) True 
 B)False

Question 5

Income tax refunds are automatically sent to those who qualify for refunds no later than April 15.

Accepted Answer

A) True 
 B)False

Question 6

Dividends received from the stock you own will be taxable income.

Accepted Answer

A) True 
 B)False

Question 7

Russ and Lois got married December 30.Since they were single for most of the year,however,they can legally file as married taxpayers in the year of the wedding.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Qualified dividends are taxed at the same rates as [earned income | long-term capital gains].

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 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The lowest marginal tax rate is currently [10% | 35%].

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 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Tax credits directly reduce a taxpayer's [taxes due | taxable 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 11

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Interest you paid on your [vacation home | stereo] loan could be deducted.

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 12

The alternative minimum tax is an issue only for high-income taxpayers.

Accepted Answer

A) True 
 B)False

Question 13

If you have any earned income,you are required to file a tax return.

Accepted Answer

A) True 
 B)False

Question 14

Maria and Ed just sold their home of 20 years so that they could purchase a smaller home.They realized a $400,000 capital gain on the home.How much of this gain will Maria and Ed have to pay taxes on?

Accepted Answer

A)  $400,000 
B)  $300,000 
C)  $250,000 
D)  $100,000 
E)  $ 0 
A)  $400,000 
B)  $300,000 
C)  $250,000 
D)  $100,000 
E)  $ 0

Question 15

The tax rate on capital gains for most people is

Accepted Answer

A)  the same as on regular income. 
B)  dependent on the time the asset was owned. 
C)  dependent on the amount of profit earned. 
D)  higher than the rate on regular income. 
E)  None of these. 
A)  the same as on regular income. 
B)  dependent on the time the asset was owned. 
C)  dependent on the amount of profit earned. 
D)  higher than the rate on regular income. 
E)  None of these.

Question 16

Medical and dental expenses may be included as itemized deductions

Accepted Answer

A)  when they exceed 4% of adjusted gross income. 
B)  up to a maximum of $7,500 per individual per tax year. 
C)  only if they do not exceed 7% of gross income. 
D)  only in the amount in excess of 7.5% of adjusted gross income. 
E)  always. 
A)  when they exceed 4% of adjusted gross income. 
B)  up to a maximum of $7,500 per individual per tax year. 
C)  only if they do not exceed 7% of gross income. 
D)  only in the amount in excess of 7.5% of adjusted gross income. 
E)  always.

Question 17

Tom sold mutual fund shares he had owned 3 years so that he could use the proceeds to return to college.Tom is in the 15% marginal tax bracket and his capital gains from this sale were $11,000.How much tax would Tom owe on those gains?

Accepted Answer

A)  $11,000 
B)  $ 3,080 
C)  $ 1,650 
D)  $ 1,100 
E)  $ 550 
A)  $11,000 
B)  $ 3,080 
C)  $ 1,650 
D)  $ 1,100 
E)  $ 550

Question 18

George has the following expenses that he wants to include as itemized deductions for the year.His adjusted gross income is $60,000.What is the total itemized deduction he can take?

Accepted Answer

The answer of George has the following expenses that he...

Question 19

Which of the following is NOT one of the three basic categories for individual income?

Accepted Answer

A)  active income 
B)  passive income 
C)  gross income 
D)  portfolio income 
A)  active income 
B)  passive income 
C)  gross income 
D)  portfolio income

Question 20

Tax credits are dollar-for-dollar reductions in taxable income.

Accepted Answer

A) True 
 B)False

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The highest marginal tax rate is currently [35% | 28%].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The tax year corresponds to the [April 15 filing deadline | calendar year].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Interest you paid on your [car | house] loan could be deducted.

If you earn less than $15,000,you probably pay more in social security taxes than in federal income taxes.

Income tax refunds are automatically sent to those who qualify for refunds no later than April 15.

Dividends received from the stock you own will be taxable income.

Russ and Lois got married December 30.Since they were single for most of the year,however,they can legally file as married taxpayers in the year of the wedding.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Qualified dividends are taxed at the same rates as [earned income | long-term capital gains].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The lowest marginal tax rate is currently [10% | 35%].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Tax credits directly reduce a taxpayer's [taxes due | taxable income].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Interest you paid on your [vacation home | stereo] loan could be deducted.

The alternative minimum tax is an issue only for high-income taxpayers.

If you have any earned income,you are required to file a tax return.

Maria and Ed just sold their home of 20 years so that they could purchase a smaller home.They realized a $400,000 capital gain on the home.How much of this gain will Maria and Ed have to pay taxes on?

The tax rate on capital gains for most people is

Medical and dental expenses may be included as itemized deductions

Tom sold mutual fund shares he had owned 3 years so that he could use the proceeds to return to college.Tom is in the 15% marginal tax bracket and his capital gains from this sale were $11,000.How much tax would Tom owe on those gains?

George has the following expenses that he wants to include as itemized deductions for the year.His adjusted gross income is $60,000.What is the total itemized deduction he can take?

Which of the following is NOT one of the three basic categories for individual income?

Tax credits are dollar-for-dollar reductions in taxable income.

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

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The highest marginal tax rate is currently [35% | 28%].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The tax year corresponds to the [April 15 filing deadline | calendar year].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Interest you paid on your [car | house] loan could be deducted.

If you earn less than $15,000,you probably pay more in social security taxes than in federal income taxes.

Income tax refunds are automatically sent to those who qualify for refunds no later than April 15.

Dividends received from the stock you own will be taxable income.

Russ and Lois got married December 30.Since they were single for most of the year,however,they can legally file as married taxpayers in the year of the wedding.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Qualified dividends are taxed at the same rates as [earned income | long-term capital gains].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The lowest marginal tax rate is currently [10% | 35%].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Tax credits directly reduce a taxpayer's [taxes due | taxable income].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Interest you paid on your [vacation home | stereo] loan could be deducted.

The alternative minimum tax is an issue only for high-income taxpayers.

If you have any earned income,you are required to file a tax return.

Maria and Ed just sold their home of 20 years so that they could purchase a smaller home.They realized a $400,000 capital gain on the home.How much of this gain will Maria and Ed have to pay taxes on?

The tax rate on capital gains for most people is

Medical and dental expenses may be included as itemized deductions

Tom sold mutual fund shares he had owned 3 years so that he could use the proceeds to return to college.Tom is in the 15% marginal tax bracket and his capital gains from this sale were $11,000.How much tax would Tom owe on those gains?

George has the following expenses that he wants to include as itemized deductions for the year.His adjusted gross income is $60,000.What is the total itemized deduction he can take?

Which of the following is NOT one of the three basic categories for individual income?

Tax credits are dollar-for-dollar reductions in taxable income.

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