Exam 3: Preparing Your Taxes

Dwayne and Gayle were divorced on September 29,have not remarried,and have no dependents.Their filing status for the year will each be "married" since they were married for more than half of the year.

Jamie has taxable income of $45,000.She is single and her tax rates are 10% on the first 8,925 of taxable income,15% of the amount over $8,925 up to $36,250 of taxable income and 25% on the remainder.What is Jamie's tax liability,her marginal tax rate,and her average tax rate?

Dividends received from the stock you own will be taxable income.

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

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?

_____ would be considered a part of taxable income.

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

Anyone can legally prepare tax returns and charge a fee for that service.

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

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 itemize your deductions,you [can | cannot] use the 1040A.

Which of the following offer tax preparation services?

If you earn less than $15,000,you probably pay more in social security taxes than in federal income 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 planning is [confined to the first quarter of the year | a year-round activity].

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?

Marginal tax and average tax rate refer to the same thing.

Gross income minus tax exempt income equals adjusted gross income.

You purchased and lived in your home 8 years.Now you have received an excellent promotion,but you will have to sell your home and move to another community.The capital gains on the home sold will:

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

If your adjusted gross income is less than $100,000 and you do not itemize deductions,the IRS will compute your taxes for you.

A declaration of estimated taxes is made by filing: