Question 1

You should itemize deductions when total itemized deductions exceed the standard deduction.

Accepted Answer

A) True 
 B)False

Question 2

Shawn earned $65,000.If the total Social Security tax rate is 15.3% then how much was his social security tax? How much would his employer pay in social security taxes for Shawn?

Accepted Answer

Alex paid social sec

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Usually a married couple will pay less income tax if they file [jointly | separately].

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

A capital gain is the result of

Accepted Answer

A)  selling an asset for less than purchase price. 
B)  holding an asset that has appreciated. 
C)  selling an asset at the same price of purchase. 
D)  selling an asset for more than purchase price. 
E)  None of these. 
A)  selling an asset for less than purchase price. 
B)  holding an asset that has appreciated. 
C)  selling an asset at the same price of purchase. 
D)  selling an asset for more than purchase price. 
E)  None of these.

Question 5

A tax audit is a(n)

Accepted Answer

A)  IRS revision of previously filed return. 
B)  IRS attempt to verify accuracy of return. 
C)  IRS charge of illegal action. 
D)  U.S.Tax Court action. 
E)  U.S.Tax Court decision. 
A)  IRS revision of previously filed return. 
B)  IRS attempt to verify accuracy of return. 
C)  IRS charge of illegal action. 
D)  U.S.Tax Court action. 
E)  U.S.Tax Court decision.

Question 6

The Medicare portion of the Social Security tax is paid on 100% of earnings.

Accepted Answer

A) True 
 B)False

Question 7

Itemized deductions are listed on Schedule

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
E)  F. 
A)  A. 
B)  B. 
C)  C. 
D)  D. 
E)  F.

Question 8

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-The terms "tax free" and "tax deferred" [do | do not] mean the same thing.

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

Persons who work for more than one employer in any year will owe more Social Security taxes than if all their income was earned from a single employer.

Accepted Answer

A) True 
 B)False

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Major software providers have online versions for preparing federal taxes which is [free to all tax filers | free to qualified tax filers].

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
-[Alimony | Child support] would be reported as 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 12

The income shifting tax strategy is least effective when income producing gifts are given to persons

Accepted Answer

A)  over age 65. 
B)  over age 50. 
C)  under age 14. 
D)  under age 25. 
E)  Age is not an issue. 
A)  over age 65. 
B)  over age 50. 
C)  under age 14. 
D)  under age 25. 
E)  Age is not an issue.

Question 13

Tax credits reduce your

Accepted Answer

A)  tax liability. 
B)  adjusted gross income. 
C)  tax refund. 
D)  tax withholding. 
E)  taxable income. 
A)  tax liability. 
B)  adjusted gross income. 
C)  tax refund. 
D)  tax withholding. 
E)  taxable income.

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-A tax credit is subtracted from your [taxable income | tax liability].

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

You made an error when you filed your tax return last year.You can correct this error by filing Form

Accepted Answer

A)  1040ES. 
B)  1040X. 
C)  1040E. 
D)  Schedule A. 
E)  Schedule D. 
A)  1040ES. 
B)  1040X. 
C)  1040E. 
D)  Schedule A. 
E)  Schedule D.

Question 16

A couple will usually incur a lower tax liability if they choose "married,filing jointly" rather than "married,filing a separately."

Accepted Answer

A) True 
 B)False

Question 17

From the information given below,determine Steve's gross income for tax purposes:

Accepted Answer

$32,000 +

Question 18

For 2011,each personal exemption reduced taxable income by

Accepted Answer

A)  $2,800 
B)  $3,000 
C)  $3,700 
D)  $3,900 
E)  $4,000 
A)  $2,800 
B)  $3,000 
C)  $3,700 
D)  $3,900 
E)  $4,000

Question 19

State income taxes and real estate taxes are both itemized deduction items.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following state and local taxes are deductible on federal income taxes for those that itemize deductions?

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.

You should itemize deductions when total itemized deductions exceed the standard deduction.

Shawn earned $65,000.If the total Social Security tax rate is 15.3% then how much was his social security tax? How much would his employer pay in social security taxes for Shawn?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Usually a married couple will pay less income tax if they file [jointly | separately].

A capital gain is the result of

A tax audit is a(n)

The Medicare portion of the Social Security tax is paid on 100% of earnings.

Itemized deductions are listed on Schedule

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The terms "tax free" and "tax deferred" [do | do not] mean the same thing.

Persons who work for more than one employer in any year will owe more Social Security taxes than if all their income was earned from a single employer.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Major software providers have online versions for preparing federal taxes which is [free to all tax filers | free to qualified tax filers].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Alimony | Child support] would be reported as taxable income.

The income shifting tax strategy is least effective when income producing gifts are given to persons

Tax credits reduce your

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A tax credit is subtracted from your [taxable income | tax liability].

You made an error when you filed your tax return last year.You can correct this error by filing Form

A couple will usually incur a lower tax liability if they choose "married,filing jointly" rather than "married,filing a separately."

From the information given below,determine Steve's gross income for tax purposes:

For 2011,each personal exemption reduced taxable income by

State income taxes and real estate taxes are both itemized deduction items.

Which of the following state and local taxes are deductible on federal income taxes for those that itemize deductions?

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 should itemize deductions when total itemized deductions exceed the standard deduction.

Shawn earned $65,000.If the total Social Security tax rate is 15.3% then how much was his social security tax? How much would his employer pay in social security taxes for Shawn?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Usually a married couple will pay less income tax if they file [jointly | separately].

A capital gain is the result of

A tax audit is a(n)

The Medicare portion of the Social Security tax is paid on 100% of earnings.

Itemized deductions are listed on Schedule

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The terms "tax free" and "tax deferred" [do | do not] mean the same thing.

Persons who work for more than one employer in any year will owe more Social Security taxes than if all their income was earned from a single employer.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Major software providers have online versions for preparing federal taxes which is [free to all tax filers | free to qualified tax filers].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -[Alimony | Child support] would be reported as taxable income.

The income shifting tax strategy is least effective when income producing gifts are given to persons

Tax credits reduce your

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -A tax credit is subtracted from your [taxable income | tax liability].

You made an error when you filed your tax return last year.You can correct this error by filing Form

A couple will usually incur a lower tax liability if they choose "married,filing jointly" rather than "married,filing a separately."

From the information given below,determine Steve's gross income for tax purposes:

For 2011,each personal exemption reduced taxable income by

State income taxes and real estate taxes are both itemized deduction items.

Which of the following state and local taxes are deductible on federal income taxes for those that itemize deductions?

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