Question 1

If you have any earned income,you are required to file a tax return.

Accepted Answer

A) True 
 B)False

Question 2

Opening a traditional IRA would allow you to take advantage of tax free earnings.

Accepted Answer

A) True 
 B)False

Question 3

Mr.and Mrs.McMurray have three children ages 3,6,and 12 for which they paid $6,000 in child care expenses this year.Assume the McMurray's tax liability is initially calculated to be $10,000.Then apply a 20% tax credit for child care expenses within limits normally allowed.How much will their final tax liability be?

Accepted Answer

A)  $ 8,000 
B)  $ 8,500 
C)  $ 8,800 
D)  $ 9,040 
E)  $10,000 
A)  $ 8,000 
B)  $ 8,500 
C)  $ 8,800 
D)  $ 9,040 
E)  $10,000

Question 4

The federal personal income tax is a flat tax.

Accepted Answer

A) True 
 B)False

Question 5

Your average tax rate is your:

Accepted Answer

A)  adjusted gross income divided by tax withheld. 
B)  adjusted gross income divided by tax liability. 
C)  tax liability divided by taxable income. 
D)  taxable income divided by tax withheld. 
E)  gross income divided by tax refund. 
A)  adjusted gross income divided by tax withheld. 
B)  adjusted gross income divided by tax liability. 
C)  tax liability divided by taxable income. 
D)  taxable income divided by tax withheld. 
E)  gross income divided by tax refund.

Question 6

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.
-There is a [high | low] chance that one's tax return will be audited in a given year.

Accepted Answer

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

Question 7

Buddy Slaton has only one itemized deduction item,the $3,000 he gave to his church.His standard deduction this year is $6,100,and he is in the 15% marginal tax bracket.How much will his contribution to the church save Buddy in taxes this year?

Accepted Answer

A)  $4,400 
B)  $3,000 
C)  $660 
D)  $450 
E)  $0 
A)  $4,400 
B)  $3,000 
C)  $660 
D)  $450 
E)  $0

Question 8

Itemized deductions are listed on Schedule:

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
E)  F. 
A)  A. 
B)  B. 
C)  C. 
D)  D. 
E)  F.

Question 9

For 2013,each personal exemption reduced adjusted gross income by:

Accepted Answer

A)  $2,800 
B)  $3,000 
C)  $3,700 
D)  $3,900 
E)  $4,000 
A)  $2,800 
B)  $3,000 
C)  $3,700 
D)  $3,900 
E)  $4,000

Question 10

All taxpayers have an equal probability of having their tax returns audited.

Accepted Answer

A) True 
 B)False

Question 11

The federal income tax is:

Accepted Answer

A)  optional. 
B)  regressive. 
C)  progressive. 
D)  flat. 
E)  none of the above 
A)  optional. 
B)  regressive. 
C)  progressive. 
D)  flat. 
E)  none of the above

Question 12

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

Accepted Answer

A) True 
 B)False

Question 13

You should itemize deductions when total itemized deductions exceed the standard deduction.

Accepted Answer

A) True 
 B)False

Question 14

A progressive tax system is one in which:

Accepted Answer

A)  tax rates are directly proportional to the inflation rates. 
B)  higher-income people pay tax at a higher rate than lower-income people. 
C)  tax rates are inversely related to the inflation rates. 
D)  higher-income people pay tax at a lower rate than lower-income people. 
E)  there are no exemptions or deductions from taxable income. 
A)  tax rates are directly proportional to the inflation rates. 
B)  higher-income people pay tax at a higher rate than lower-income people. 
C)  tax rates are inversely related to the inflation rates. 
D)  higher-income people pay tax at a lower rate than lower-income people. 
E)  there are no exemptions or deductions from taxable income.

Question 15

Which of the following is subject to federal income tax?

Accepted Answer

A)  Tax credits Earnings on Roth IRA 
B)  Municipal bond interest 
C)  Child care support 
D)  Alimony received 
E)  All of the above 
A)  Tax credits Earnings on Roth IRA 
B)  Municipal bond interest 
C)  Child care support 
D)  Alimony received 
E)  All of the above

Question 16

Diana sold mutual fund shares she had owned 4 years so that she could use the proceeds to travel across Europe with her son.Diana is in the 35% marginal tax bracket and her capital gains from this sale were $30,000.How much tax would Diana owe on those gains?

Accepted Answer

A)  $10,500 
B)  $ 8,400 
C)  $ 6,000 
D)  $ 4,500 
E)  $ 1,500 
A)  $10,500 
B)  $ 8,400 
C)  $ 6,000 
D)  $ 4,500 
E)  $ 1,500

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

In 2013,the total Social Security tax was:

Accepted Answer

A)  6.0%. 
B)  6.75%. 
C)  7.25%. 
D)  13.4%. 
E)  15.3%. 
A)  6.0%. 
B)  6.75%. 
C)  7.25%. 
D)  13.4%. 
E)  15.3%.

Question 19

Connie is a 20 year old college student who earned $8,000 and spent it all on her support during the year.Her parents may claim her as a tax dependent as long as:

Accepted Answer

A)  they contribute more than half her support for the year. 
B)  she is under 21. 
C)  she makes under $10,000. 
D)  she lives at home. 
E)  all these things are true 
A)  they contribute more than half her support for the year. 
B)  she is under 21. 
C)  she makes under $10,000. 
D)  she lives at home. 
E)  all these things are true

Question 20

An investment must be owned over two years in order to qualify for 0 percent tax on capital gains.

Accepted Answer

A) True 
 B)False

If you have any earned income,you are required to file a tax return.

Opening a traditional IRA would allow you to take advantage of tax free earnings.

The federal personal income tax is a flat tax.

Your average tax rate is your:

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. -There is a [high | low] chance that one's tax return will be audited in a given year.

Buddy Slaton has only one itemized deduction item,the $3,000 he gave to his church.His standard deduction this year is $6,100,and he is in the 15% marginal tax bracket.How much will his contribution to the church save Buddy in taxes this year?

Itemized deductions are listed on Schedule:

For 2013,each personal exemption reduced adjusted gross income by:

All taxpayers have an equal probability of having their tax returns audited.

The federal income tax is:

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

You should itemize deductions when total itemized deductions exceed the standard deduction.

A progressive tax system is one in which:

Which of the following is subject to federal income tax?

Diana sold mutual fund shares she had owned 4 years so that she could use the proceeds to travel across Europe with her son.Diana is in the 35% marginal tax bracket and her capital gains from this sale were $30,000.How much tax would Diana owe on those gains?

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

In 2013,the total Social Security tax was:

Connie is a 20 year old college student who earned $8,000 and spent it all on her support during the year.Her parents may claim her as a tax dependent as long as:

An investment must be owned over two years in order to qualify for 0 percent tax on capital gains.

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

If you have any earned income,you are required to file a tax return.

Opening a traditional IRA would allow you to take advantage of tax free earnings.

The federal personal income tax is a flat tax.

Your average tax rate is your:

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. -There is a [high | low] chance that one's tax return will be audited in a given year.

Buddy Slaton has only one itemized deduction item,the $3,000 he gave to his church.His standard deduction this year is $6,100,and he is in the 15% marginal tax bracket.How much will his contribution to the church save Buddy in taxes this year?

Itemized deductions are listed on Schedule:

For 2013,each personal exemption reduced adjusted gross income by:

All taxpayers have an equal probability of having their tax returns audited.

The federal income tax is:

State income taxes and state sales taxes paid can both be included as itemized deductions in the same tax year.

You should itemize deductions when total itemized deductions exceed the standard deduction.

A progressive tax system is one in which:

Which of the following is subject to federal income tax?

Diana sold mutual fund shares she had owned 4 years so that she could use the proceeds to travel across Europe with her son.Diana is in the 35% marginal tax bracket and her capital gains from this sale were $30,000.How much tax would Diana owe on those gains?

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

In 2013,the total Social Security tax was:

Connie is a 20 year old college student who earned $8,000 and spent it all on her support during the year.Her parents may claim her as a tax dependent as long as:

An investment must be owned over two years in order to qualify for 0 percent tax on capital gains.

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