Question 1

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A tax credit could result from [owning a home | adopting a child].

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
-You are single with no dependents,age 30.Based on this information,you [could | could not] use the 1040EZ.

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

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2011.Assuming she does not remarry,in 2012 the only legal filing status for Molly will be

Accepted Answer

A)  single 
B)  married filing separately 
C)  head of household 
D)  qualifying widow 
E)  any of the above 
A)  single 
B)  married filing separately 
C)  head of household 
D)  qualifying widow 
E)  any of the above

Question 4

A declaration of estimated taxes is made by filing

Accepted Answer

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

Question 5

To qualify for the capital gain exclusion on a home sale,the seller must have resided in the residence for ___ of the previous 5 years.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
E)  5 
A)  1 
B)  2 
C)  3 
D)  4 
E)  5

Question 6

Qualifying interest on a student loan can be written off as an itemized deduction.

Accepted Answer

A) True 
 B)False

Question 7

Estimated tax payments must be made by those who do not have taxes deducted from their earnings.

Accepted Answer

A) True 
 B)False

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Your tax filing status [would | would not] be a factor in determining the amount of standard deduction you could take.

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
-Federal income taxation is [progressive | regressive].

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

Dwayne and Gayle were divorced September 29,have not remarried,and have no dependents.Their filing status for the year will each be "married" since they were married for more than half of the year.

Accepted Answer

A) True 
 B)False

Question 11

Marginal tax and average tax rate refer to the same thing.

Accepted Answer

A) True 
 B)False

Question 12

A taxpayer can file for an automatic extension of ___ months.

Accepted Answer

A)  2 
B)  4 
C)  6 
D)  9 
E)  12 
A)  2 
B)  4 
C)  6 
D)  9 
E)  12

Question 13

The Federal personal income tax is a progressive tax.

Accepted Answer

A) True 
 B)False

Question 14

A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments.

Accepted Answer

A) True 
 B)False

Question 15

One's home must typically be owned at least three years to receive the most favorable capital gains treatment.

Accepted Answer

A) True 
 B)False

Question 16

Qualified dividends are taxed at the same rates as long-term capital gains.

Accepted Answer

A) True 
 B)False

Question 17

Murray (age 68,single)just sold his home of 35 years so that he could relocate nearer his grandchildren.He realized a $400,000 capital gain on the home.How much of this gain will Murray have to pay taxes on?

Accepted Answer

A)  $400,000 
B)  $300,000 
C)  $250,000 
D)  $150,000 
E)  $ 0 
A)  $400,000 
B)  $300,000 
C)  $250,000 
D)  $150,000 
E)  $ 0

Question 18

A long-term capital gain,a investment held for more than 6 months,would be taxed at the same rate as earned income.

Accepted Answer

A) True 
 B)False

Question 19

Molly and Justin are considering contributing $5,000 to their favorite,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 this $5,000 to charity?

Accepted Answer

A)  $ 0 
B)  $ 840 
C)  $1,400 
D)  $2,000 
E)  $5,000 
A)  $ 0 
B)  $ 840 
C)  $1,400 
D)  $2,000 
E)  $5,000

Question 20

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-[All | Some] of your medical expenses during the year could be taken as an itemized deduction.

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.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A tax credit could result from [owning a home | adopting a child].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -You are single with no dependents,age 30.Based on this information,you [could | could not] use the 1040EZ.

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2011.Assuming she does not remarry,in 2012 the only legal filing status for Molly will be

A declaration of estimated taxes is made by filing

To qualify for the capital gain exclusion on a home sale,the seller must have resided in the residence for ___ of the previous 5 years.

Qualifying interest on a student loan can be written off as an itemized deduction.

Estimated tax payments must be made by those who do not have taxes deducted from their earnings.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your tax filing status [would | would not] be a factor in determining the amount of standard deduction you could take.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Federal income taxation is [progressive | regressive].

Dwayne and Gayle were divorced September 29,have not remarried,and have no dependents.Their filing status for the year will each be "married" since they were married for more than half of the year.

Marginal tax and average tax rate refer to the same thing.

A taxpayer can file for an automatic extension of ___ months.

The Federal personal income tax is a progressive tax.

A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments.

One's home must typically be owned at least three years to receive the most favorable capital gains treatment.

Qualified dividends are taxed at the same rates as long-term capital gains.

Murray (age 68,single)just sold his home of 35 years so that he could relocate nearer his grandchildren.He realized a $400,000 capital gain on the home.How much of this gain will Murray have to pay taxes on?

A long-term capital gain,a investment held for more than 6 months,would be taxed at the same rate as earned income.

Molly and Justin are considering contributing $5,000 to their favorite,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 this $5,000 to charity?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[All | Some] of your medical expenses during the year could be taken as an itemized deduction.

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 -A tax credit could result from [owning a home | adopting a child].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -You are single with no dependents,age 30.Based on this information,you [could | could not] use the 1040EZ.

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2011.Assuming she does not remarry,in 2012 the only legal filing status for Molly will be

A declaration of estimated taxes is made by filing

To qualify for the capital gain exclusion on a home sale,the seller must have resided in the residence for ___ of the previous 5 years.

Qualifying interest on a student loan can be written off as an itemized deduction.

Estimated tax payments must be made by those who do not have taxes deducted from their earnings.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Your tax filing status [would | would not] be a factor in determining the amount of standard deduction you could take.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Federal income taxation is [progressive | regressive].

Dwayne and Gayle were divorced September 29,have not remarried,and have no dependents.Their filing status for the year will each be "married" since they were married for more than half of the year.

Marginal tax and average tax rate refer to the same thing.

A taxpayer can file for an automatic extension of ___ months.

The Federal personal income tax is a progressive tax.

A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments.

One's home must typically be owned at least three years to receive the most favorable capital gains treatment.

Qualified dividends are taxed at the same rates as long-term capital gains.

Murray (age 68,single)just sold his home of 35 years so that he could relocate nearer his grandchildren.He realized a $400,000 capital gain on the home.How much of this gain will Murray have to pay taxes on?

A long-term capital gain,a investment held for more than 6 months,would be taxed at the same rate as earned income.

Molly and Justin are considering contributing $5,000 to their favorite,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 this $5,000 to charity?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[All | Some] of your medical expenses during the year could be taken as an itemized deduction.

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