Chapter 3 preparing your taxes

các câu hỏi trắc nghiệm môn kế hoách tài chính, financial planing, đầy đủ, điểm cao, ôn thi cho final và các bài thi học phần, đại học Hà Nội, FMT, On which of the following types of income would you normally have income tax withheld?, FIP

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Chapter 3 Preparing Your Taxes

Principles of Finance (Trường Đại học Ngoại thương)

Chapter 3 Preparing Your Taxes

Principles of Finance (Trường Đại học Ngoại thương)

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1 The federal personal income tax is a progressive tax.

United States - AK - DISC: Taxes

KEYWORDS: Bloom's: Remembering

2 The federal personal income tax is a flat tax

3 Tax avoidance is legal, tax evasion is illegal

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4 One's marginal tax rate is typically lower than one's average tax rate.

KEYWORDS: Bloom's: Analyzing

5 One's average tax rate is typically lower than one's marginal tax rate

6 If you have any earned income, you are required to file a tax return

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7 The main objective of tax planning is to maximize the amount of money you keep by minimizing the amount of taxes you pay

KEYWORDS: Bloom's: Understanding

8 If you are eligible to receive a tax refund, you will have to file a tax return to get the refund

9 Income tax refunds are automatically sent to those who qualify for refunds no later than April 15

United States - BUSPROG: Analytic skills - BUSPROG: Analytical skills

STATE STANDA United States - KS - DISC: Financial Analysis and Cas - DISC: Financial

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RDS: Analysis and Cash Flows

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

11 Russ and Lois got married December 30 Although they were single for most of the year, they can legally file as married taxpayers in the year of the wedding

12 Dwayne and Gayle were divorced September 29, have not remarried, and have no dependents Their filing status for the year will each be "married" since they were married for more than half of the year

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

14 A spouse and spouse is the only couple combination that can file a joint return

15 The tax brackets (rates) and payments for married couples filing separately are now typically close to the same as for joint filers

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16 The Internal Revenue Service is responsible for making changes to the federal income tax codes

17 Congress considers tax law changes throughout the year

18 Social security taxes are deducted from all wages and salaries earned in a year

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19 Social security taxes are paid on earned income but not on investment income

20 There is no limit on the amount of social security tax withheld annually

21 The Medicare portion of the FICA tax is paid on 100% of earnings

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22 Your marital status will affect the amount of social security you must pay in a year

23 Child support received is included in gross income

24 Alimony received is included in gross income for the receiver and deducted from gross income for the payer

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25 Gifts received from family and friends are included in gross income

26 Gross income minus tax exempt income equals adjusted gross income

27 Dividends received from the stock you own will be taxable income

a True

b Fals

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28 Qualified dividends are taxed at the same rates as long-term capital gains

29 Portfolio-related expenses can be written off against passive income

30 A short-term capital gain would be taxed at the same rate as your salary

a True

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31 A long-term capital gain is taxed at the same rate as ordinary income

32 The sale of your home will rarely result in a taxable capital gain

33 An investment must be owned over one year in order to qualify for long-term capital gains treatment

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34 An investment must be owned over two years in order to qualify for long-term capital gains treatment

35 To receive the most favorable capital gains treatment, a taxpayer must own and occupy a home for at least two of the five years prior to its sale

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36 Adjustments to income will decrease your taxable income.

37 Itemized deductions could include certain taxes, medical expenditures, and home mortgage interest

KEYWORDS: Bloom's: Applying

38 You should itemize deductions when total itemized deductions exceed the standard deduction

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39 You should itemize deductions when total itemized deductions are less than the standard deduction

40 Mortgage interest and paid home property taxes are both itemized deduction items

41 State income taxes and real estate taxes are both itemized deduction items

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42 A tax deduction is more valuable than a tax credit

43 Federal income taxes paid can be deducted the following year

44 Personal exemptions are deductions from AGI based on the number of persons supported by the taxpayer's income

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STATE STANDA

RDS:

United States - KS - DISC: Financial Analysis and Cas - DISC: Financial Analysis and Cash Flows

45 The personal exemption for a student can be taken both by the parent and by the child

46 When a child qualifies as a dependent on her parent's return, the child cannot take a personal exemption for herself

47 The alternative minimum tax is designed to ensure that individuals with many deductions and tax-shelter investments are paying their fair share of taxes

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48 Tax credits are dollar-for-dollar reductions in taxes due

49 Estimated tax payments must be made by those who do not have taxes deducted from their earnings

50 A person with a significant amount of investment income would have a high probability of needing to make estimated tax payments

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51 All taxpayers have an equal probability of having their tax returns audited

52 You have up to three years after mailing your tax return to file an amended tax return (1040X)

53 If your AGI is less than $100,000 and you do not itemize deductions, the IRS will compute your taxes for you

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54 A married couple filing a joint return has Ms Cindy Cook, a CPA, complete their return The IRS will hold only Ms Cook responsible for any errors on the return

55 Marginal tax and average tax rate refer to the same thing

56 If you earn less than $15,000, you probably pay more in social security taxes than in federal income taxes

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57 Opening a traditional IRA would allow you to defer taxes on the earnings

58 Opening a traditional IRA would allow you to take advantage of tax-free earnings

59 Tax-deferred income is better than tax-free income

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60 Municipal bond investments typically provide tax-free interest income

61 Most any wage earner can open an IRA and contribute up to $7,500 of tax-deferred income each year to the account

62 Tax avoidance is a legal means to minimize tax liabilities

a True

b Fals

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63 Tax evasion is a legal means to avoid tax liabilities

64 Persons who work for more than one employer in any year will owe more social security taxes than if all their income was earned from a single employer

65 A taxpayer claiming himself and one dependent had personal exemptions in 2014 amounting to $7,900

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66 The regular income tax filing deadline is April 1 of each year

67 By filing a tax extension, one does not have to pay his income tax liability until October 15

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

69 The standard deduction in 2014 for a single filer was $6,500 and for married persons filing jointly was $13,000

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

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71 You are more likely to have your tax return audited if you have large deductions for meals, travel, and entertainment.

72 The tax year corresponds to the April 15 filing deadline, with a new tax year beginning April 16th.

73 The alternative minimum tax calculation includes in taxable income certain types of deductions otherwise allowed, such as state and local income and property taxes.

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74 The federal government gets the majority of its revenue from the tax.

75 The federal income tax is

76 A progressive tax system is one in which higher-income people pay than lower-income people

a a higher dollar amount in

taxes

b tax at a higher rate

c a lower dollar amount in taxes

d tax at a lower rate

e tax at the same rate

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

78 Pete and Pam are married with four dependent children Pete and Pam can legally file using which of the following filing statuses?

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STATE STANDA

RDS:

United States - KS - DISC: Financial Analysis and Cas - DISC: Financial Analysis and Cash Flows

79 Mandi and Thomas were married and had one child, age 7 Mandi died in 2013 leaving Thomas a single parent In

2014, the most favorable filing status for Thomas would be

80 Molly and Jason were married Their only "dependent" was Spot, their black standard poodle Jason died in 2013 Assuming she does not remarry, in 2014 the only legal filing status for Molly would be

81 For tax purposes, head of household refers to

a the person with the larger income when a couple is filing a joint return

b a single individual with dependents

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c a single individual who owns a home.

d the spouse who has the only income for a couple filing a joint return

e a widow(er) with no dependents but with debts from death of spouse three years

82 Your take-home pay is what you are left with after subtracting withholdings from your

83 income is gross income less tax deductions and payments for insurance and retirement savings

LEARNING OB PFIN.BILL.17.3-1 - LO: 3-1

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84 Your income tax withholding is dependent on

a income level and deductions

b deductions and age

c income level and number of withholding

allowances

d number of withholding allowances and deductions

e number of withholding allowances and dependents

85 The standard deduction is a blanket deduction that depends on the taxpayers

86 In 2014, the total social security tax was

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87 Which of the following is not one of the three basic categories for individual income?

88 Ben and Jack both earned $60,000 this year Ben (age 30) is married with two children, and Jack (age 61) is single with no dependents Which of the following is true regarding the amount of Social Security taxes they will pay?

a They will pay the same amount of Social Security taxes

b Ben will pay less Social Security taxes because he is married

c Ben will pay less Social Security taxes because he has children

d Jack will pay less Social Security taxes because he is single

e Jack will pay less Social Security taxes because he is over age

60

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KEYWORDS: Bloom's: Evaluating

89 income is subject to federal taxes

90 You would typically not include in your gross income.

a wages and salaries

b life insurance death benefit

STATE STANDA United States - KS - DISC: Financial Analysis and Cas - DISC: Financial

Tiêu đề	Preparing Your Taxes
Trường học	Foreign Trade University
Chuyên ngành	Finance
Thể loại	textbook chapter
Năm xuất bản	2023
Thành phố	Hanoi

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Số trang	67
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