Exam 3: Preparing Your Taxes

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] focuses on reducing taxes in ways that are legal and compatible with the intent of Congress.

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. -The major source of revenue for the federal government is [income | Social Security] taxes.

Tax-deferred income is better than tax-free income.

The regular income tax filing deadline is April 1 of each year.

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. -The terms "tax free" and "tax deferred" [do | do not] mean the same thing.

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. -Your tax filing status [would | would not] be a factor in determining the amount of standard deduction you could take.

Local income taxes and local personal property taxes are both itemized deduction items.

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. -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].

Portfolio-related expenses can be written off against passive income.

Molly and Jason were married.Their only "dependent" was Spot,their black standard poodle.Jason died in 2012.Assuming she does not remarry,in 2013 the only legal filing status for Molly will be:

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