Exam 4: Using Tax Concepts for Planning

Medicare is a government health insurance program that covers people over age 55 and provides payments to health care providers in case of illness.

In order to claim a tax deduction for a charitable contribution,you must be

Gross income includes all of the following except

Interest income would come from earnings on

Your gross wages are subject to FICA (Federal Insurance Contributions Act)taxes that fund the Social Security system and Medicare.

In 2015,self-employed individuals paid FICA taxes at a rate of

Assume you are still single and have no children,but your two siblings live with you in your home,you should file as

If a stock was purchased for $5,000 in January 2015 and is sold in December 2015 for $3,000,a ________ of $2,000 results.

The ________ is a fixed amount deducted from adjusted gross income to determine taxable income.

The filing status that yields the largest standard deduction per taxpayer is

Determining taxes requires you to address all of the following topics except

Which of the following is not taxable for income tax purposes?

Which of the following is not subject to immediate taxation?

Ralph and Josee have adjusted gross income of $53,000.They have itemized deductions of $18,000 and incurred $2,000 in college expenses for their daughter who is a freshman at a local community college.They file jointly and have three exemptions at $4,000 each.Compute their tax liability for the current year.

All of the following are types of nontaxable income except

A personal exemption can be claimed for the person filing a tax return,for a spouse,and for each dependent.

Which of the following is not a tax credit mentioned in the chapter?

All interest and dividends received by an individual taxpayer are taxable.

Gross income consists of all reportable income from any source.

Which of the following can be deducted from your taxable income even if you do not itemize?