Question 1

The percentage of the last dollar you earn that goes toward your taxes is your

Accepted Answer

A) tax deferral rate. 
B) base tax rate. 
C) average tax rate. 
D) marginal tax rate. 
A) tax deferral rate. 
B) base tax rate. 
C) average tax rate. 
D) marginal tax rate.

Question 2

Samuel's average tax rate for 2014 is closest to which of the following?

Accepted Answer

A) 10% 
B) 15% 
C) 12.5% 
D) 25% 
A) 10% 
B) 15% 
C) 12.5% 
D) 25%

Question 3

You wish to make a charitable contribution of $2,000 to a qualified organization.You are currently in the 28 percent marginal tax bracket.By how much would this contribution lower your tax bill assuming your other itemized deductions exceed the standard deduction?

Accepted Answer

A) $280.00 
B) $560.00 
C) $1,440.00 
D) $2,000.00 
A) $280.00 
B) $560.00 
C) $1,440.00 
D) $2,000.00

Question 4

Describe the four filing status classifications.

Accepted Answer

Married Filing Jointly and Surviving Spo

Question 5

Standard deductions need yearlong record-keeping and thorough and accurate documentation.

Accepted Answer

A) True 
 B)False

Question 6

Tax credits reduce your taxes on a dollar-for-dollar basis.

Accepted Answer

A) True 
 B)False

Question 7

Income on which the payment of taxes is postponed until some future date is called

Accepted Answer

A) tax-delayed. 
B) tax-deferred. 
C) tax-postponed. 
D) tax-tardy. 
A) tax-delayed. 
B) tax-deferred. 
C) tax-postponed. 
D) tax-tardy.

Question 8

What would be the equivalent tax-free yield on a 10% corporate bond if you are in a 25% tax bracket?

Accepted Answer

A) 13.3% 
B) 8.25% 
C) 7.5% 
D) 11.15% 
A) 13.3% 
B) 8.25% 
C) 7.5% 
D) 11.15%

Question 9

If you are self-employed,you have to pay both the employer and the employee portions of FICA for a total of what percent?

Accepted Answer

A) 7.65% 
B) 6.20% 
C) 15.3% 
D) 1.45% 
A) 7.65% 
B) 6.20% 
C) 15.3% 
D) 1.45%

Question 10

For most tax payers,their average tax rate is lower than their marginal tax rate.

Accepted Answer

A) True 
 B)False

Question 11

You purchased 100 shares of I-Tech stock for $40 per share 3 years ago.If you sold those shares today at the current market price of $150 per share,what would be your capital gain on the sale,ignoring all commissions?

Accepted Answer

A) $110 
B) $3,667 
C) $7,333 
D) $11,000 
E) None of the above 
A) $110 
B) $3,667 
C) $7,333 
D) $11,000 
E) None of the above

Question 12

Which indicates the correct order for completing your tax returns?

Accepted Answer

A) Claim exemptions,calculate total tax,subtract deductions,subtract adjustments,determine gross income 
B) Subtract deductions,calculate total tax,claim exemptions,determine gross income,subtract adjustments 
C) Determine gross income,subtract adjustments,subtract deductions,claim exemptions,calculate total tax 
D) None of the above 
A) Claim exemptions,calculate total tax,subtract deductions,subtract adjustments,determine gross income 
B) Subtract deductions,calculate total tax,claim exemptions,determine gross income,subtract adjustments 
C) Determine gross income,subtract adjustments,subtract deductions,claim exemptions,calculate total tax 
D) None of the above

Question 13

Which of the following are permissible itemized tax deductions?

Accepted Answer

A) Medical and dental expenses 
B) Casualty and theft losses 
C) Home mortgage interest 
D) Gifts to charity 
E) All of the above 
A) Medical and dental expenses 
B) Casualty and theft losses 
C) Home mortgage interest 
D) Gifts to charity 
E) All of the above

Question 14

Ashlyn is a single person with no dependents.She normally receives over $1,800 every year for an income tax refund.She is having difficulty paying her monthly bills every month.What tax advice would you give her?

Accepted Answer

A) She should increase her exemptions on her W-4 form at work. 
B) She should pay her estimated taxes every quarter. 
C) She needs to find some more tax deductions. 
D) She needs to file as Head of Household status 
A) She should increase her exemptions on her W-4 form at work. 
B) She should pay her estimated taxes every quarter. 
C) She needs to find some more tax deductions. 
D) She needs to file as Head of Household status

Question 15

If you are unable to file your tax returns by the deadline,you may file form 4868,Application for Automatic Extension of Time,and receive an extension of up to six months

Accepted Answer

A) upon approval. 
B) automatically. 
C) if you meet the IRS requirements. 
D) none of the above 
A) upon approval. 
B) automatically. 
C) if you meet the IRS requirements. 
D) none of the above

Question 16

Which of the following is not allowed as a personal or dependency exemption?

Accepted Answer

A) Yourself 
B) Your 26-year-old child,who lives at home and earns $27,000 a year 
C) Your spouse,if you're filing a joint return 
D) Your 75-year-old grandfather,whom you financially support 
A) Yourself 
B) Your 26-year-old child,who lives at home and earns $27,000 a year 
C) Your spouse,if you're filing a joint return 
D) Your 75-year-old grandfather,whom you financially support

Question 17

If you're in the 15% marginal tax bracket,what is the equivalent taxable yield on an 8% municipal bond?

Accepted Answer

A) 9.41% 
B) 6.96% 
C) 8.15% 
D) 8.70% 
A) 9.41% 
B) 6.96% 
C) 8.15% 
D) 8.70%

Question 18

Name the sources of tax-free income.

Accepted Answer

These sources include interest on munici

Question 19

Strategies for maximizing deductions center on what three tactics?

Accepted Answer

(1)Using tax-deferred retirement program

Question 20

Which factors affect your choice between claiming itemized deductions and the standard deduction?

Accepted Answer

A) Home ownership,as mortgage interest may exceed the standard deduction 
B) More deductible expenses this year than last year,as a result of unforeseen circumstances or planned "bunching" of deductions 
C) Ease and simplicity of filing 
D) Year long recordkeeping to thoroughly and accurately document itemized deductions 
E) All of the above 
A) Home ownership,as mortgage interest may exceed the standard deduction 
B) More deductible expenses this year than last year,as a result of unforeseen circumstances or planned "bunching" of deductions 
C) Ease and simplicity of filing 
D) Year long recordkeeping to thoroughly and accurately document itemized deductions 
E) All of the above

The percentage of the last dollar you earn that goes toward your taxes is your

Samuel's average tax rate for 2014 is closest to which of the following?

You wish to make a charitable contribution of $2,000 to a qualified organization.You are currently in the 28 percent marginal tax bracket.By how much would this contribution lower your tax bill assuming your other itemized deductions exceed the standard deduction?

Describe the four filing status classifications.

Standard deductions need yearlong record-keeping and thorough and accurate documentation.

Tax credits reduce your taxes on a dollar-for-dollar basis.

Income on which the payment of taxes is postponed until some future date is called

What would be the equivalent tax-free yield on a 10% corporate bond if you are in a 25% tax bracket?

If you are self-employed,you have to pay both the employer and the employee portions of FICA for a total of what percent?

For most tax payers,their average tax rate is lower than their marginal tax rate.

You purchased 100 shares of I-Tech stock for $40 per share 3 years ago.If you sold those shares today at the current market price of $150 per share,what would be your capital gain on the sale,ignoring all commissions?

Which indicates the correct order for completing your tax returns?

Which of the following are permissible itemized tax deductions?

Ashlyn is a single person with no dependents.She normally receives over $1,800 every year for an income tax refund.She is having difficulty paying her monthly bills every month.What tax advice would you give her?

If you are unable to file your tax returns by the deadline,you may file form 4868,Application for Automatic Extension of Time,and receive an extension of up to six months

Which of the following is not allowed as a personal or dependency exemption?

If you're in the 15% marginal tax bracket,what is the equivalent taxable yield on an 8% municipal bond?

Name the sources of tax-free income.

Strategies for maximizing deductions center on what three tactics?

Which factors affect your choice between claiming itemized deductions and the standard deduction?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 4: Tax Planning and Strategies

The percentage of the last dollar you earn that goes toward your taxes is your

Samuel's average tax rate for 2014 is closest to which of the following?

You wish to make a charitable contribution of $2,000 to a qualified organization.You are currently in the 28 percent marginal tax bracket.By how much would this contribution lower your tax bill assuming your other itemized deductions exceed the standard deduction?

Describe the four filing status classifications.

Standard deductions need yearlong record-keeping and thorough and accurate documentation.

Tax credits reduce your taxes on a dollar-for-dollar basis.

Income on which the payment of taxes is postponed until some future date is called

What would be the equivalent tax-free yield on a 10% corporate bond if you are in a 25% tax bracket?

If you are self-employed,you have to pay both the employer and the employee portions of FICA for a total of what percent?

For most tax payers,their average tax rate is lower than their marginal tax rate.

You purchased 100 shares of I-Tech stock for $40 per share 3 years ago.If you sold those shares today at the current market price of $150 per share,what would be your capital gain on the sale,ignoring all commissions?

Which indicates the correct order for completing your tax returns?

Which of the following are permissible itemized tax deductions?

Ashlyn is a single person with no dependents.She normally receives over $1,800 every year for an income tax refund.She is having difficulty paying her monthly bills every month.What tax advice would you give her?

If you are unable to file your tax returns by the deadline,you may file form 4868,Application for Automatic Extension of Time,and receive an extension of up to six months

Which of the following is not allowed as a personal or dependency exemption?

If you're in the 15% marginal tax bracket,what is the equivalent taxable yield on an 8% municipal bond?

Name the sources of tax-free income.

Strategies for maximizing deductions center on what three tactics?

Which factors affect your choice between claiming itemized deductions and the standard deduction?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters