Question 1

If you are in a 25 percent tax bracket then every dollar of your adjusted gross income will be taxed at 25 percent.

Accepted Answer

A) True 
 B)False

Question 2

Social Security is a voluntary insurance program administered by the federal government that provides for you and your family in the event of death,disability,health problems,or retirement.

Accepted Answer

A) True 
 B)False

Question 3

Why are the various tax "credits" such a welcome relief?

Accepted Answer

Tax credits are subtracted directly from

Question 4

Which of the following is an income tax filing status?

Accepted Answer

A) Divorced filing spouse 
B) Married filing jointly and surviving spouses 
C) Head of divorced household 
D) All of the above are income tax filing statuses. 
A) Divorced filing spouse 
B) Married filing jointly and surviving spouses 
C) Head of divorced household 
D) All of the above are income tax filing statuses.

Question 5

Since 1985,tax brackets have changed annually to reflect the increases in the cost of living,otherwise known as?

Accepted Answer

A) Capital Gains 
B) Marginal Brackets 
C) Inflation 
D) Tax-deferred 
A) Capital Gains 
B) Marginal Brackets 
C) Inflation 
D) Tax-deferred

Question 6

Chase Cutter has a marginal tax rate of 33 percent,a state income tax rate of 3.5 percent,and a city income tax rate of 0.5 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) 33 percent 
B) 36.5 percent 
C) 39.6 percent 
D) 44.65 percent 
A) 33 percent 
B) 36.5 percent 
C) 39.6 percent 
D) 44.65 percent

Question 7

Would the $10,000 gift the Taylors received from Chuck's parents be shown as income and taxed?

Accepted Answer

No,because

Question 8

Although Richard and Katarina are a happily married couple,they joke that they could not possibly remarry for at least two years following the year of the death of the other spouse because

Accepted Answer

A) the surviving spouse would lose the tax advantage of married filing jointly status,assuming at least one child was still a dependent and the surviving spouse was paying more than half the cost of keeping up the home. 
B) the surviving spouse would lose the exemption amount for the deceased spouse. 
C) the surviving spouse would have to file as head of household. 
D) neither spouse has sufficient life insurance to provide for the family. 
A) the surviving spouse would lose the tax advantage of married filing jointly status,assuming at least one child was still a dependent and the surviving spouse was paying more than half the cost of keeping up the home. 
B) the surviving spouse would lose the exemption amount for the deceased spouse. 
C) the surviving spouse would have to file as head of household. 
D) neither spouse has sufficient life insurance to provide for the family.

Question 9

Assets you own,including such items as stocks,bonds,or real estate,are commonly termed

Accepted Answer

A) capital assets. 
B) monetary assets. 
C) current assets. 
D) intangible assets. 
A) capital assets. 
B) monetary assets. 
C) current assets. 
D) intangible assets.

Question 10

For 2017,the federal tax code allows an estate valued at up to $5.49 million to be transferred tax free to any heir.If the estate is valued at more than $5.49 million,the amount over $5.49 million will be taxed at

Accepted Answer

A) 25 percent. 
B) 30 percent. 
C) 40 percent. 
D) 55 percent. 
A) 25 percent. 
B) 30 percent. 
C) 40 percent. 
D) 55 percent.

Question 11

Your base income tax liability can be determined by

Accepted Answer

A) using the alternative minimum tax worksheet,aimed at preventing the wealthy from paying little or no taxes. 
B) using the IRS tax tables provided in the instruction booklet. 
C) using the IRS rate schedules for taxable incomes greater than $100,000. 
D) all of the above. 
E) none of the above. 
A) using the alternative minimum tax worksheet,aimed at preventing the wealthy from paying little or no taxes. 
B) using the IRS tax tables provided in the instruction booklet. 
C) using the IRS rate schedules for taxable incomes greater than $100,000. 
D) all of the above. 
E) none of the above.

Question 12

Taxes are collected on a pay-as-you-go basis.

Accepted Answer

A) True 
 B)False

Question 13

In 2017,the IRS audited what percent of all tax returns?

Accepted Answer

A) 2% 
B) 5% 
C) .7% 
D) 8% 
A) 2% 
B) 5% 
C) .7% 
D) 8%

Question 14

Why might someone choose to use itemized deductions instead of taking the standard deduction offered by the IRS?

Accepted Answer

A) It is easier to calculate your itemized deductions versus the standard deduction. 
B) You may have a lower tax liability if you itemize instead of using the standard deduction. 
C) Married taxpayers must use the itemized deductions only. 
D) Most computer tax software automatically itemizes deductions. 
E) both B and C are correct. 
A) It is easier to calculate your itemized deductions versus the standard deduction. 
B) You may have a lower tax liability if you itemize instead of using the standard deduction. 
C) Married taxpayers must use the itemized deductions only. 
D) Most computer tax software automatically itemizes deductions. 
E) both B and C are correct.

Question 15

If you are self-employed,you have to pay both the employer and employee portions of FICA,for a total rate of 20 percent.

Accepted Answer

A) True 
 B)False

Question 16

Which of the statements about audits is true?

Accepted Answer

A) 1 percent of individual taxpayers are audited 
B) 23.57 percent of individuals earning between $500,000 and $1 million are audited. 
C) 8.9 percent of individuals earning between $1 million and $5 million are audited. 
D) 27.37 percent of individuals earning more than $10 million are audited. 
A) 1 percent of individual taxpayers are audited 
B) 23.57 percent of individuals earning between $500,000 and $1 million are audited. 
C) 8.9 percent of individuals earning between $1 million and $5 million are audited. 
D) 27.37 percent of individuals earning more than $10 million are audited.

Question 17

A key to calculating your taxes is deciding which Form 1050 to use: 1050EZ,1050A,or 1050.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of filing electronically?

Accepted Answer

A) Faster refunds 
B) Quick electronic confirmation 
C) More accurate returns 
D) All of the above 
A) Faster refunds 
B) Quick electronic confirmation 
C) More accurate returns 
D) All of the above

Question 19

FICA deductions from your paycheck are for which mandatory federal insurance programs?

Accepted Answer

A) Unemployment benefits 
B) Social Security 
C) Medicare 
D) Medicaid 
E) Both B and C 
A) Unemployment benefits 
B) Social Security 
C) Medicare 
D) Medicaid 
E) Both B and C

Question 20

In chapter 4,Dianne Taylor won a 2016 Honda Accord on "The Price is Right" TV show.She has to pay taxes on her prize.The taxes are based on the car's ________ value.

Accepted Answer

A) fair market 
B) residual 
C) manufacturer's suggested retail price 
D) invoice 
A) fair market 
B) residual 
C) manufacturer's suggested retail price 
D) invoice

If you are in a 25 percent tax bracket then every dollar of your adjusted gross income will be taxed at 25 percent.

Social Security is a voluntary insurance program administered by the federal government that provides for you and your family in the event of death,disability,health problems,or retirement.

Why are the various tax "credits" such a welcome relief?

Which of the following is an income tax filing status?

Since 1985,tax brackets have changed annually to reflect the increases in the cost of living,otherwise known as?

Chase Cutter has a marginal tax rate of 33 percent,a state income tax rate of 3.5 percent,and a city income tax rate of 0.5 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?

Would the $10,000 gift the Taylors received from Chuck's parents be shown as income and taxed?

Although Richard and Katarina are a happily married couple,they joke that they could not possibly remarry for at least two years following the year of the death of the other spouse because

Assets you own,including such items as stocks,bonds,or real estate,are commonly termed

For 2017,the federal tax code allows an estate valued at up to $5.49 million to be transferred tax free to any heir.If the estate is valued at more than $5.49 million,the amount over $5.49 million will be taxed at

Your base income tax liability can be determined by

Taxes are collected on a pay-as-you-go basis.

In 2017,the IRS audited what percent of all tax returns?

Why might someone choose to use itemized deductions instead of taking the standard deduction offered by the IRS?

If you are self-employed,you have to pay both the employer and employee portions of FICA,for a total rate of 20 percent.

Which of the statements about audits is true?

A key to calculating your taxes is deciding which Form 1050 to use: 1050EZ,1050A,or 1050.

Which of the following is an advantage of filing electronically?

FICA deductions from your paycheck are for which mandatory federal insurance programs?

In chapter 4,Dianne Taylor won a 2016 Honda Accord on "The Price is Right" TV show.She has to pay taxes on her prize.The taxes are based on the car's ________ value.

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

If you are in a 25 percent tax bracket then every dollar of your adjusted gross income will be taxed at 25 percent.

Social Security is a voluntary insurance program administered by the federal government that provides for you and your family in the event of death,disability,health problems,or retirement.

Why are the various tax "credits" such a welcome relief?

Which of the following is an income tax filing status?

Since 1985,tax brackets have changed annually to reflect the increases in the cost of living,otherwise known as?

Chase Cutter has a marginal tax rate of 33 percent,a state income tax rate of 3.5 percent,and a city income tax rate of 0.5 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?

Would the $10,000 gift the Taylors received from Chuck's parents be shown as income and taxed?

Although Richard and Katarina are a happily married couple,they joke that they could not possibly remarry for at least two years following the year of the death of the other spouse because

Assets you own,including such items as stocks,bonds,or real estate,are commonly termed

For 2017,the federal tax code allows an estate valued at up to $5.49 million to be transferred tax free to any heir.If the estate is valued at more than $5.49 million,the amount over $5.49 million will be taxed at

Your base income tax liability can be determined by

Taxes are collected on a pay-as-you-go basis.

In 2017,the IRS audited what percent of all tax returns?

Why might someone choose to use itemized deductions instead of taking the standard deduction offered by the IRS?

If you are self-employed,you have to pay both the employer and employee portions of FICA,for a total rate of 20 percent.

Which of the statements about audits is true?

A key to calculating your taxes is deciding which Form 1050 to use: 1050EZ,1050A,or 1050.

Which of the following is an advantage of filing electronically?

FICA deductions from your paycheck are for which mandatory federal insurance programs?

In chapter 4,Dianne Taylor won a 2016 Honda Accord on "The Price is Right" TV show.She has to pay taxes on her prize.The taxes are based on the car's ________ value.

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