Question 1

Which of the following is a reason or reasons for the IRS to audit your tax return?

Accepted Answer

A) You were randomly selected as a matter of routine audits. 
B) You were audited in the past. 
C) There is something suspicious on your return. 
D) You earn a lot of money. 
E) any or all of the above 
A) You were randomly selected as a matter of routine audits. 
B) You were audited in the past. 
C) There is something suspicious on your return. 
D) You earn a lot of money. 
E) any or all of the above

Question 2

According the Keown book,most taxes-about ________ of individual income taxes-are collected through withholding from wages.

Accepted Answer

A) 30 percent 
B) 50 percent 
C) 70 percent 
D) 90 percent 
A) 30 percent 
B) 50 percent 
C) 70 percent 
D) 90 percent

Question 3

Expenditures that are subtracted in an effort to calculate the lowest possible taxable income are called

Accepted Answer

A) exemptions. 
B) deductions. 
C) capital expenses. 
D) fixed expenses. 
A) exemptions. 
B) deductions. 
C) capital expenses. 
D) fixed expenses.

Question 4

Name the categories of filing status.

Accepted Answer

Single status,married filing j

Question 5

Assume that you have a marginal tax rate of 28 percent,a state income tax rate of 4 percent,and have a city income tax rate of 1 percent.The tax for Social Security and Medicare is 7.65 percent.What would be the effective marginal tax rate on your last dollar of earnings?

Accepted Answer

A) 28 percent 
B) 32 percent 
C) 33 percent 
D) 40.65 percent 
E) Cannot determine from the information provided 
A) 28 percent 
B) 32 percent 
C) 33 percent 
D) 40.65 percent 
E) Cannot determine from the information provided

Question 6

Which of the methods listed below is not used by the IRS as a tax collection mechanism?

Accepted Answer

A) Paycheck withholdings 
B) Audits held in your home or office 
C) Quarterly estimated tax payments 
D) Payments sent with your tax return 
E) All of the above are used by the IRS to collect income taxes. 
A) Paycheck withholdings 
B) Audits held in your home or office 
C) Quarterly estimated tax payments 
D) Payments sent with your tax return 
E) All of the above are used by the IRS to collect income taxes.

Question 7

To help Joseph with his tax planning,he should carefully track and maintain records for all of the following expenses during the tax year except

Accepted Answer

A) all expenses for prescribed health care needs that are not covered by insurance. 
B) all job related expenses,especially those that are and are not reimbursed by his employer. 
C) state and local income taxes,real estate taxes,and personal property taxes. 
D) price appreciation,or increases from January 1 to December 31,for the 1,500 shares of stock he owns. 
E) all of the above. 
A) all expenses for prescribed health care needs that are not covered by insurance. 
B) all job related expenses,especially those that are and are not reimbursed by his employer. 
C) state and local income taxes,real estate taxes,and personal property taxes. 
D) price appreciation,or increases from January 1 to December 31,for the 1,500 shares of stock he owns. 
E) all of the above.

Question 8

What form did the Taylors have to use because they won a car?

Accepted Answer

A) 1040EZ 
B) 1040A 
C) 1040 long 
D) W-2 
A) 1040EZ 
B) 1040A 
C) 1040 long 
D) W-2

Question 9

Adjusted gross income is your total gross income adjusted for inflation.

Accepted Answer

A) True 
 B)False

Question 10

Explain the concept of using the standard deduction or using itemized deductions.

Accepted Answer

The alternative to itemizing deductions

Question 11

What is Samuel's gross income for 2014?

Accepted Answer

A) $35,250 
B) $22,500 
C) $39,500 
D) Not enough information to determine 
A) $35,250 
B) $22,500 
C) $39,500 
D) Not enough information to determine

Question 12

If you are an unmarried taxpayer,with at least one child or dependent living with you,your filing status should be

Accepted Answer

A) single. 
B) surviving spouse. 
C) married filing separately. 
D) head of household. 
A) single. 
B) surviving spouse. 
C) married filing separately. 
D) head of household.

Question 13

What are the five general tax strategies in tax planning?

Accepted Answer

-Maximize your deductions.
-Look to capi

Question 14

What are two tax advantages of tax-deferred retirement plans?

Accepted Answer

(1)You don't pay taxes on the money you

Question 15

According the Keown book,most taxes,about 30 percent of individual income taxes,are collected through withholding from wages.

Accepted Answer

A) True 
 B)False

Question 16

Based on Samuel's completed tax return,what advice would you give him to lower his tax liability for 2015?

Accepted Answer

A) He should take the computer classes in 2015. 
B) He should sell his stock. 
C) He should increase his contributions to the 401(k)plan at work. 
D) He should get a roommate and claim him as a dependant. 
E) Both A and C are good advice. 
A) He should take the computer classes in 2015. 
B) He should sell his stock. 
C) He should increase his contributions to the 401(k)plan at work. 
D) He should get a roommate and claim him as a dependant. 
E) Both A and C are good advice.

Question 17

The Bosteins

Accepted Answer

A) have no dependents to declare. 
B) should use the married filing separately filing status. 
C) should calculate their taxes itemizing and taking the standard deduction to see which is greater. 
D) none of the above. 
A) have no dependents to declare. 
B) should use the married filing separately filing status. 
C) should calculate their taxes itemizing and taking the standard deduction to see which is greater. 
D) none of the above.

Question 18

What are the benefits of filing taxes electronically?

Accepted Answer

Faster refunds: Direct deposit can speed

Question 19

Contributing $2,000 into a tax-deferred retirement plan in a 28% tax bracket will save

Accepted Answer

A) $70. 
B) $140. 
C) $280. 
D) $560. 
E) It depends on the exemptions and deductions claimed. 
A) $70. 
B) $140. 
C) $280. 
D) $560. 
E) It depends on the exemptions and deductions claimed.

Question 20

The earned income credit serves as a negative income tax and is available to

Accepted Answer

A) anyone with an earned income as opposed to passive income. 
B) low-income taxpayers. 
C) only head of household status filers. 
D) only senior citizens below the poverty line. 
A) anyone with an earned income as opposed to passive income. 
B) low-income taxpayers. 
C) only head of household status filers. 
D) only senior citizens below the poverty line.

Which of the following is a reason or reasons for the IRS to audit your tax return?

According the Keown book,most taxes-about ________ of individual income taxes-are collected through withholding from wages.

Expenditures that are subtracted in an effort to calculate the lowest possible taxable income are called

Name the categories of filing status.

Assume that you have a marginal tax rate of 28 percent,a state income tax rate of 4 percent,and have a city income tax rate of 1 percent.The tax for Social Security and Medicare is 7.65 percent.What would be the effective marginal tax rate on your last dollar of earnings?

Which of the methods listed below is not used by the IRS as a tax collection mechanism?

To help Joseph with his tax planning,he should carefully track and maintain records for all of the following expenses during the tax year except

What form did the Taylors have to use because they won a car?

Adjusted gross income is your total gross income adjusted for inflation.

Explain the concept of using the standard deduction or using itemized deductions.

What is Samuel's gross income for 2014?

If you are an unmarried taxpayer,with at least one child or dependent living with you,your filing status should be

What are the five general tax strategies in tax planning?

What are two tax advantages of tax-deferred retirement plans?

According the Keown book,most taxes,about 30 percent of individual income taxes,are collected through withholding from wages.

Based on Samuel's completed tax return,what advice would you give him to lower his tax liability for 2015?

The Bosteins

What are the benefits of filing taxes electronically?

Contributing $2,000 into a tax-deferred retirement plan in a 28% tax bracket will save

The earned income credit serves as a negative income tax and is available to

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

Which of the following is a reason or reasons for the IRS to audit your tax return?

According the Keown book,most taxes-about ________ of individual income taxes-are collected through withholding from wages.

Expenditures that are subtracted in an effort to calculate the lowest possible taxable income are called

Name the categories of filing status.

Assume that you have a marginal tax rate of 28 percent,a state income tax rate of 4 percent,and have a city income tax rate of 1 percent.The tax for Social Security and Medicare is 7.65 percent.What would be the effective marginal tax rate on your last dollar of earnings?

Which of the methods listed below is not used by the IRS as a tax collection mechanism?

To help Joseph with his tax planning,he should carefully track and maintain records for all of the following expenses during the tax year except

What form did the Taylors have to use because they won a car?

Adjusted gross income is your total gross income adjusted for inflation.

Explain the concept of using the standard deduction or using itemized deductions.

What is Samuel's gross income for 2014?

If you are an unmarried taxpayer,with at least one child or dependent living with you,your filing status should be

What are the five general tax strategies in tax planning?

What are two tax advantages of tax-deferred retirement plans?

According the Keown book,most taxes,about 30 percent of individual income taxes,are collected through withholding from wages.

Based on Samuel's completed tax return,what advice would you give him to lower his tax liability for 2015?

The Bosteins

What are the benefits of filing taxes electronically?

Contributing $2,000 into a tax-deferred retirement plan in a 28% tax bracket will save

The earned income credit serves as a negative income tax and is available to

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