Exam 3: Preparing Your Taxes

The amount of each personal exemption in 2013 was $3,900.

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

If you do not wish to itemize deductions,you can use the:

Federal income taxes paid can be deducted in the following year.

Tax avoidance is legal,tax evasion is illegal.

Tax preparers must be licensed by either the state or federal government.

The tax rate on capital gains for most people is:

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 common name for Federal Insurance Contributions Act payments is [income tax | social security tax].

A simplified version of the 1040 form for individual income tax if you have taxable income of less than $100,000 and no itemizing deductions is:

Income shifting refers to the process of transferring income from the taxpayer to the IRS.

Alimony received is included in gross income for the receiver and a tax deduction for the payer.

The Medicare portion of the Social Security tax is paid on 100% of earnings.

Opening a traditional IRA would allow you to defer taxes on the earning.

Most major software providers have free online versions for preparing federal taxes for all taxpayers.

Municipal bond investments typically provide tax-free interest income.

Russ and Lois got married on December 30.Even though they were single for most part of the year,they can legally file as married taxpayers in the year of the wedding.

Henry is married to Lillian,and they have two dependent children.Henry can legally file using which of the following filing statuses?

If you are married,you can legally file a single tax return.

Social Security taxes are paid on earned income and investment income.

Child support received is included in gross income.