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?

Which of the following cannot be adjustment(s)to gross income on the 1040 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. -A tax credit could result from [owning a home | adopting a child].

Which of the following is NOT one of the three basic categories for individual income?

You would typically not include _____ in your gross income.

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. -A tax credit is subtracted from your [taxable income | tax liability].

You are preparing your own tax return.The least costly source for answering your questions would be:

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. -Usually a married couple will pay less income tax if they file [jointly | separately].

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. -Federal income taxation is [progressive | regressive].

The personal exemption for a student can be taken both by the parent and by the child.

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. -Christy lives by herself with her dog,Tex.She [can | cannot] use the Head of Household filing status.

Your take-home pay is what you are left with after subtracting withholdings from your:

The standard deduction is a blanket deduction that depends on the taxpayer's:

Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2013 are as follows: How much would the Davenports' medical expenses contribute to their total itemized deductions?

A married couple filing a joint return has Ms.Cindy Cook,a CPA,complete their return.The IRS will hold only Ms.Cook responsible for any errors on the return.

A capital gain on an investment held for more than 12 months would be taxed at the same rate as ordinary income.

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 credits directly reduce a taxpayer's [taxes due | taxable income].

Federal government generates the majority of its revenues from property 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. -A tax credit would result from [an IRA contribution | child care expenses].

Gifts received from family and friends are included in gross income.