Question 1

Social Security taxes are paid on earned income and investment income.

Accepted Answer

A) True 
 B)False

Question 2

Alimony received is included in gross income for the receiver and a tax deduction for the payer.

Accepted Answer

A) True 
 B)False

Question 3

A special tax provision reduced the social security portion for the individual taxpayer in 2011 and 2012 by

Accepted Answer

A)  1.0% 
B)  2.0% 
C)  3.0% 
D)  4.0% 
E)  5.0% 
A)  1.0% 
B)  2.0% 
C)  3.0% 
D)  4.0% 
E)  5.0%

Question 4

Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2011 are as follows:   How much would the Davenports' medical expenses contribute to their total itemized deductions?

Accepted Answer

A)  $ 0 
B)  $ 375 
C)  $3,500 
D)  $2,750 
E)  $4,500 
A)  $ 0 
B)  $ 375 
C)  $3,500 
D)  $2,750 
E)  $4,500

Question 5

The Internal Revenue Service is responsible for writing the federal income tax codes.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

$40,000 +

Question 7

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

Accepted Answer

A)  $ 500 
B)  $1,500 
C)  $2,000 
D)  $2,500 
E)  $3,000 
A)  $ 500 
B)  $1,500 
C)  $2,000 
D)  $2,500 
E)  $3,000

Question 8

The tax year corresponds to the April 15 filing deadline,with a new tax year beginning April 16th.

Accepted Answer

A) True 
 B)False

Question 9

As a single taxpayer with no dependents,one is generally eligible to file as "head of household."

Accepted Answer

A) True 
 B)False

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Dividends received from stocks are known as [passive | portfolio] 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
-The standard or itemized deduction,reduces the taxpayer's [taxable income | taxes due].

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

Itemized deductions could include certain taxes,medical expenditures,and home mortgage interest.

Accepted Answer

A) True 
 B)False

Question 13

____ would be considered taxable income.

Accepted Answer

A)  An inheritance from your grandmother's estate 
B)  A gift from your aunt 
C)  Child support payments 
D)  Alimony received 
E)  A tuition scholarship 
A)  An inheritance from your grandmother's estate 
B)  A gift from your aunt 
C)  Child support payments 
D)  Alimony received 
E)  A tuition scholarship

Question 14

Social security taxes are deducted from all wages and salaries earned in a year.

Accepted Answer

A) True 
 B)False

Question 15

The AMT includes in taxable income certain types of deductions otherwise allowed,such as state and local income and property taxes.

Accepted Answer

A) True 
 B)False

Question 16

One's marginal tax rate is typical lower than one's average tax rate.

Accepted Answer

A) True 
 B)False

Question 17

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-If you ask the IRS a tax question and are given an incorrect answer,[you will still have to pay any additional tax owed | the IRS will forgive any additional 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 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-If you are claimed as a dependent on your parents' tax return,you [may also | may not] claim yourself on your tax return.

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 19

Mortgage interest and paid home property taxes are both itemized deduction items.

Accepted Answer

A) True 
 B)False

Question 20

George,from the previous problem,is single and his standard deduction for the year is $5,800.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized deductions?

Accepted Answer

($12,600 -

Social Security taxes are paid on earned income and investment income.

Alimony received is included in gross income for the receiver and a tax deduction for the payer.

A special tax provision reduced the social security portion for the individual taxpayer in 2011 and 2012 by

Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2011 are as follows: How much would the Davenports' medical expenses contribute to their total itemized deductions?

The Internal Revenue Service is responsible for writing the federal income tax codes.

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

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

The tax year corresponds to the April 15 filing deadline,with a new tax year beginning April 16th.

As a single taxpayer with no dependents,one is generally eligible to file as "head of household."

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Dividends received from stocks are known as [passive | portfolio] income.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The standard or itemized deduction,reduces the taxpayer's [taxable income | taxes due].

Itemized deductions could include certain taxes,medical expenditures,and home mortgage interest.

____ would be considered taxable income.

Social security taxes are deducted from all wages and salaries earned in a year.

The AMT includes in taxable income certain types of deductions otherwise allowed,such as state and local income and property taxes.

One's marginal tax rate is typical lower than one's average tax rate.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If you ask the IRS a tax question and are given an incorrect answer,[you will still have to pay any additional tax owed | the IRS will forgive any additional taxes].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If you are claimed as a dependent on your parents' tax return,you [may also | may not] claim yourself on your tax return.

Mortgage interest and paid home property taxes are both itemized deduction items.

George,from the previous problem,is single and his standard deduction for the year is $5,800.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized 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

Social Security taxes are paid on earned income and investment income.

Alimony received is included in gross income for the receiver and a tax deduction for the payer.

A special tax provision reduced the social security portion for the individual taxpayer in 2011 and 2012 by

Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2011 are as follows: How much would the Davenports' medical expenses contribute to their total itemized deductions?

The Internal Revenue Service is responsible for writing the federal income tax codes.

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

Jamil and Vicki have one child,age 3,for which they paid $2,500 in child care expenses this year.If they are eligible for the 20% dependent care credit plus the child tax credit,how much will these two credits reduce their tax liability?

The tax year corresponds to the April 15 filing deadline,with a new tax year beginning April 16th.

As a single taxpayer with no dependents,one is generally eligible to file as "head of household."

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Dividends received from stocks are known as [passive | portfolio] income.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -The standard or itemized deduction,reduces the taxpayer's [taxable income | taxes due].

Itemized deductions could include certain taxes,medical expenditures,and home mortgage interest.

____ would be considered taxable income.

Social security taxes are deducted from all wages and salaries earned in a year.

The AMT includes in taxable income certain types of deductions otherwise allowed,such as state and local income and property taxes.

One's marginal tax rate is typical lower than one's average tax rate.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If you ask the IRS a tax question and are given an incorrect answer,[you will still have to pay any additional tax owed | the IRS will forgive any additional taxes].

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -If you are claimed as a dependent on your parents' tax return,you [may also | may not] claim yourself on your tax return.

Mortgage interest and paid home property taxes are both itemized deduction items.

George,from the previous problem,is single and his standard deduction for the year is $5,800.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized 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