Question 1

Pete and Pam are married with four dependent children.Pete and Pam can legally file using which of the following filing statuses?

Accepted Answer

A) married filing separately 
B) married filing jointly 
C) head of household 
D) a or b 
E) a, b, or c 
A) married filing separately 
B) married filing jointly 
C) head of household 
D) a or b 
E) a, b, or c

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Larry is single and his standard deduction for the year is $6,200.He has itemized deductions of $13,000.If he is in the 25% marginal tax bracket,how much tax would he save by using his itemized deductions?

Accepted Answer

($13,000 ?

Question 4

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) $0 
A) $11,000 
B) $3,080 
C) $1,650 
D) $1,100 
E) $0

Question 5

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 6

A tax deduction is more valuable than a tax credit.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

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 9

Your marital status will affect the amount of social security you must pay in a year.

Accepted Answer

A) True 
 B)False

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Tax [avoidance | evasion] involves failure to accurately report income or deductions,and,in extreme cases,a failure to pay taxes altogether.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Tax avoidance is a legal means to minimize tax liabilities.

Accepted Answer

A) True 
 B)False

Question 12

Tax practitioners that are federally licensed are called

Accepted Answer

A) certified public accountants 
B) certified financial planners 
C) tax attorneys 
D) enrolled agents 
E) none of the above. 
A) certified public accountants 
B) certified financial planners 
C) tax attorneys 
D) enrolled agents 
E) none of the above.

Question 13

Pat and Joy are considering contributing $5,000 to their church.This contribution will bring their total itemized deductions to $10,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to their church?

Accepted Answer

A) $0 
B) $150 
C) $300 
D) $500 
E) $1,000 
A) $0 
B) $150 
C) $300 
D) $500 
E) $1,000

Question 14

The tax brackets (rates)and payments for married couples filing separately are now typically close to the same as for joint filers.

Accepted Answer

A) True 
 B)False

Question 15

The federal personal income tax is a progressive tax.

Accepted Answer

A) True 
 B)False

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Dividends received from stocks are known as [passive | portfolio] income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Your income tax withholding is dependent on

Accepted Answer

A) income level and deductions. 
B) deductions and age. 
C) income level and number of withholding allowances. 
D) number of withholding allowances and deductions. 
E) number of withholding allowances and dependents. 
A) income level and deductions. 
B) deductions and age. 
C) income level and number of withholding allowances. 
D) number of withholding allowances and deductions. 
E) number of withholding allowances and dependents.

Question 18

You have no employer provided pension plan; your IRA contributions are treated as

Accepted Answer

A) an adjustment to gross income. 
B) an additional personal exemption. 
C) part of the standard deduction. 
D) an itemized deduction. 
E) a tax credit. 
A) an adjustment to gross income. 
B) an additional personal exemption. 
C) part of the standard deduction. 
D) an itemized deduction. 
E) a tax credit.

Question 19

On which of the following types of income would you normally have income tax withheld?

Accepted Answer

A) Tips 
B) Interest 
C) Dividends 
D) Capital gains 
E) Self-employment income 
A) Tips 
B) Interest 
C) Dividends 
D) Capital gains 
E) Self-employment income

Question 20

____ 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

Pete and Pam are married with four dependent children.Pete and Pam can legally file using which of the following filing statuses?

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

Larry is single and his standard deduction for the year is $6,200.He has itemized deductions of $13,000.If he is in the 25% marginal tax bracket,how much tax would he save by using his 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?

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

A tax deduction is more valuable than a tax credit.

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

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

Your marital status will affect the amount of social security you must pay in a year.

Tax avoidance is a legal means to minimize tax liabilities.

Tax practitioners that are federally licensed are called

Pat and Joy are considering contributing $5,000 to their church.This contribution will bring their total itemized deductions to $10,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to their church?

The tax brackets (rates)and payments for married couples filing separately are now typically close to the same as for joint filers.

The federal personal income tax is a progressive tax.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Dividends received from stocks are known as [passive | portfolio] income.

Your income tax withholding is dependent on

You have no employer provided pension plan; your IRA contributions are treated as

On which of the following types of income would you normally have income tax withheld?

____ would be considered 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

Pete and Pam are married with four dependent children.Pete and Pam can legally file using which of the following filing statuses?

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

Larry is single and his standard deduction for the year is $6,200.He has itemized deductions of $13,000.If he is in the 25% marginal tax bracket,how much tax would he save by using his 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?

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

A tax deduction is more valuable than a tax credit.

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

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

Your marital status will affect the amount of social security you must pay in a year.

Tax avoidance is a legal means to minimize tax liabilities.

Tax practitioners that are federally licensed are called

Pat and Joy are considering contributing $5,000 to their church.This contribution will bring their total itemized deductions to $10,000.Assuming they are in the 15% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to their church?

The tax brackets (rates)and payments for married couples filing separately are now typically close to the same as for joint filers.

The federal personal income tax is a progressive tax.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Dividends received from stocks are known as [passive | portfolio] income.

Your income tax withholding is dependent on

You have no employer provided pension plan; your IRA contributions are treated as

On which of the following types of income would you normally have income tax withheld?

____ would be considered 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