Question 1

If Madeline is unable to file her federal tax forms by the deadline,what actions should she take?

Accepted Answer

Madeline should take two speci...

Question 2

At the end of the year,Walter received a form that showed his payments from independent contracting.That form is called a

Accepted Answer

A)  1040.
B)  1099.
C)  W-2.
D)  W-4.
E)  Schedule A.F) B) and C)
G) C) and D)

Question 3

The maximum amount (in 2010) that an individual can give another in a year without being subject to federal taxes is

Accepted Answer

A)   All gifts are taxable.
B)   $10,000.
C)   $13,000.
D)   $15,000.
E)   No gifts are taxable.F) C) and D)
G) A) and D)

Question 4

The tax designed to ensure that those who receive tax breaks also pay their fair share of taxes is called the

Accepted Answer

A)   AMT.
B)   Average tax rate.
C)   Income tax rate.
D)   Marginal tax rate.
E)   Total tax rate.F) B) and E)
G) A) and E)

Question 5

Penny knows that she needs to file her federal income taxes,but she is unable to do so by April 15.What form does she need to complete to obtain an automatic six-month extension?

Accepted Answer

A)   1040
B)   1099
C)   4868
D)   W-2
E)   W-4F) B) and E)
G) A) and C)

Question 6

Using the following table,calculate the taxes for an individual with taxable income of $45,000.

Accepted Answer

A)   $6,025
B)   $7,375
C)   $8,625
D)   $20,900
E)   $45,000.F) B) and D)
G) A) and E)

Question 7

Some tax disputes have been escalated to the U.S.Supreme Court.

Accepted Answer

A) True 
 B)False

Question 8

Recent tax credits include all of the following except the

Accepted Answer

A)   Earned income credit.
B)   Foreign tax credit.
C)   Adoption tax credit.
D)   Graduate learning tax credit.
E)   Retirement tax credit.F) A) and B)
G) B) and E)

Question 9

When Paul completes his taxes,he can include all of the following as exemptions except

Accepted Answer

A)   His 12-year-old son.
B)   Himself.
C)   His 22-year-old daughter who is a full-time student.
D)   His wife.
E)   His 20-year-old son who is working full-time and living in an apartment.F) D) and E)
G) A) and D)

Question 10

Nancy is married to Jerry and needs to complete her tax form.They both earn about the same amount of money each year.What filing status would be best for them?

Accepted Answer

A)   Single
B)   Married, filing a joint return
C)   Head of household
D)   Qualifying widow or widower
E)   Married, but filing individuallyF) C) and D)
G) A) and D)

Question 11

Amounts given for tuition payments or medical expenses are not subject to gift taxes.

Accepted Answer

A) True 
 B)False

Question 12

The tax based on the total tax due divided by taxable income is called the

Accepted Answer

A)   AMT.
B)   Average tax rate.
C)   Income tax rate.
D)   Marginal tax rate.
E)   Total tax rate.F) B) and E)
G) A) and B)

Question 13

Contributions to a Keogh or 401(k)are tax-exempt.

Accepted Answer

A) True 
 B)False

Question 14

What is the difference between tax-exempt income and tax-deferred income?

Accepted Answer

Tax-exempt income is never sub...

Question 15

When Tom calculates his taxable income,he should subtract his tax credits from adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 16

A worker's primary goal should be to

Accepted Answer

A)   Pay his or her taxes using estimates for income and deductions.
B)   Pay no income taxes.
C)   Pay the average tax rate for people working in his or her industry.
D)   Pay his or her fair share of taxes while taking advantage of appropriate tax benefits.
E)   Pay no taxes of any type.F) B) and D)
G) A) and B)

Question 17

When you receive an audit notice,you have certain rights.What are some suggestions to follow with an audit?

Accepted Answer

Suggestions include these:
• Decide whet...

Question 18

Federal income tax returns must be filed by April 1 of each year.

Accepted Answer

A) True 
 B)False

Question 19

Shannon is working on her federal income tax form and wants to determine if she should itemize her deductions.She has identified several possible deductions.Which of the following is an acceptable deduction?

Accepted Answer

A)   $10,000 gift to her cousin
B)   Credit card interest
C)   Medical and dental expenses less than 7.5% of AGI
D)   Miscellaneous expenses in excess of 2% of AGI
E)   Moving expenses for a new job that is 25 miles from her old homeF) A) and E)
G) All of the above

Question 20

In 2011,the U.S.federal tax tables included tax rates of

Accepted Answer

A)   0%, 10%, 20%, 30%, 40%, and 50%.
B)   7%, 15%, 30%, 33%, 38%, and 52%.
C)   0%, 25%, 50%, and 75%.
D)   10%, 15%, 25%, 28%, 33%, and 35%.
E)   0%, 5%, 20%, 30%, and 50%.F) A) and E)
G) None of the above

Exam 3: Taxes in Your Financial Plan

In 2011,the U.S.federal tax tables included tax rates of

Correct AnswerverifiedShow Answer

At the end of the year,Walter received a form that showed his payments from independent contracting.That form is called a

Correct AnswerverifiedShow Answer

When Paul completes his taxes,he can include all of the following as exemptions except

Correct AnswerverifiedShow Answer

The tax based on the total tax due divided by taxable income is called the

Correct AnswerverifiedShow Answer

Recent tax credits include all of the following except the

Correct AnswerverifiedShow Answer

What is the difference between tax-exempt income and tax-deferred income?

Correct AnswerverifiedTax-exempt income is never sub...View AnswerShow Answer

Federal income tax returns must be filed by April 1 of each year.

Correct AnswerverifiedShow Answer

Contributions to a Keogh or 401(k)are tax-exempt.

Correct AnswerverifiedShow Answer

The maximum amount (in 2010) that an individual can give another in a year without being subject to federal taxes is

Correct AnswerverifiedShow Answer

Some tax disputes have been escalated to the U.S.Supreme Court.

Correct AnswerverifiedShow Answer

When you receive an audit notice,you have certain rights.What are some suggestions to follow with an audit?

Correct AnswerverifiedSuggestions include these:• Decide whet...View AnswerShow Answer

When Tom calculates his taxable income,he should subtract his tax credits from adjusted gross income.

Correct AnswerverifiedShow Answer

Amounts given for tuition payments or medical expenses are not subject to gift taxes.

Correct AnswerverifiedShow Answer

Penny knows that she needs to file her federal income taxes,but she is unable to do so by April 15.What form does she need to complete to obtain an automatic six-month extension?

Correct AnswerverifiedShow Answer

A worker's primary goal should be to

Correct AnswerverifiedShow Answer

If Madeline is unable to file her federal tax forms by the deadline,what actions should she take?

Correct AnswerverifiedMadeline should take two speci...View AnswerShow Answer

Using the following table,calculate the taxes for an individual with taxable income of $45,000.

Correct AnswerverifiedShow Answer

Nancy is married to Jerry and needs to complete her tax form.They both earn about the same amount of money each year.What filing status would be best for them?

Correct AnswerverifiedShow Answer

Shannon is working on her federal income tax form and wants to determine if she should itemize her deductions.She has identified several possible deductions.Which of the following is an acceptable deduction?

Correct AnswerverifiedShow Answer

The tax designed to ensure that those who receive tax breaks also pay their fair share of taxes is called the

Correct AnswerverifiedShow Answer

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Tax-exempt income is never sub...
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Suggestions include these:
• Decide whet...
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Correct Answer
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Correct Answer
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Madeline should take two speci...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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