Question 1

Elizabeth Gleason just died.At the time of her death the total value of her assets was $150,000.The federal government collected $7,500 in taxes based on this value.What type of tax is this most likely to be?

Accepted Answer

A)  General sales tax
B)  Excise tax
C)  Personal property tax
D)  Income tax
E)  Estate taxF) A) and D)
G) B) and D)

Question 2

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

Accepted Answer

A)  Roth IRA
B)  Education IRA
C)  Keogh Account
D)  401 Plan
E)  SEPF) C) and D)
G) B) and C)

Question 3

Examples of tax credits do not include a/an _______________ tax credit.

Accepted Answer

A)  energy-saving
B)  adoption
C)  elderly and disabled
D)  credit card
E)  saversF) B) and D)
G) B) and C)

Question 4

What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?

Accepted Answer

The 1040 form used by a taxpayer is infl...

Question 5

Two types of education savings plans are the Coverdell Education Savings Account and the:

Accepted Answer

A)  401k.
B)  529 plan.
C)  Keogh plan.
D)  traditional IRA.
E)  Roth IRA.F) C) and E)
G) All of the above

Question 6

The interest paid on which type of loan is not tax deductible?

Accepted Answer

A)  Home equity loan interest
B)  Credit card interest
C)  Mortgage interest for a primary residence
D)  Mortgage interest for a second home
E)  Investment interest up to the amount of investment incomeF) C) and D)
G) A) and C)

Question 7

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

Accepted Answer

A)  adjusted gross income.
B)  taxable income.
C)  earned income.
D)  passive income.
E)  total exclusions.F) B) and D)
G) A) and D)

Question 8

Money received by an individual for personal effort is classified as ______________ income.

Accepted Answer

A)  passive
B)  earned
C)  portfolio
D)  excluded
E)  capital gainsF) A) and B)
G) C) and D)

Question 9

George Washburn had earnings from his salary of $34,000,interest on savings of $800,a contribution to a traditional individual retirement account of $1,500,and dividends from mutual funds of $600.George's adjusted income would be:

Accepted Answer

A)  $33,900.
B)  $34,000.
C)  $34,600.
D)  $34,800.
E)  $35,400.F) C) and D)
G) B) and D)

Question 10

Money received in the form of dividends or interest is classified as ____________ income.

Accepted Answer

A)  passive
B)  earned
C)  excluded
D)  capital gain
E)  investmentF) A) and D)
G) C) and E)

Question 11

To minimize taxes owed,you should do the following if you expect to have a higher tax rate next year:

Accepted Answer

A)  Accelerate deductions into the current year
B)  Delay the receipt of income until next year
C)  Delay deductions until next year
D)  All of these
E)  None of theseF) A) and B)
G) C) and E)

Exam 4: Planning Your Tax Strategy

Money received in the form of dividends or interest is classified as ____________ income.

Correct Answer
verified

The interest paid on which type of loan is not tax deductible?

Correct Answer
verified

Two types of education savings plans are the Coverdell Education Savings Account and the:

Correct Answer
verified

Examples of tax credits do not include a/an _______________ tax credit.

Correct Answer
verified

Money received by an individual for personal effort is classified as ______________ income.

Correct Answer
verified

Elizabeth Gleason just died.At the time of her death the total value of her assets was $150,000.The federal government collected $7,500 in taxes based on this value.What type of tax is this most likely to be?

Correct Answer
verified

To minimize taxes owed,you should do the following if you expect to have a higher tax rate next year:

Correct Answer
verified

George Washburn had earnings from his salary of $34,000,interest on savings of $800,a contribution to a traditional individual retirement account of $1,500,and dividends from mutual funds of $600.George's adjusted income would be:

Correct Answer
verified

What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?

Correct Answer
verified
The 1040 form used by a taxpayer is infl...
View Answer

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

Correct Answer
verified

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

Correct Answer
verified

Exam 4: Planning Your Tax Strategy

Money received in the form of dividends or interest is classified as ____________ income.

Correct AnswerverifiedShow Answer

The interest paid on which type of loan is not tax deductible?

Correct AnswerverifiedShow Answer

Two types of education savings plans are the Coverdell Education Savings Account and the:

Correct AnswerverifiedShow Answer

Examples of tax credits do not include a/an _______________ tax credit.

Correct AnswerverifiedShow Answer

Money received by an individual for personal effort is classified as ______________ income.

Correct AnswerverifiedShow Answer

Elizabeth Gleason just died.At the time of her death the total value of her assets was $150,000.The federal government collected $7,500 in taxes based on this value.What type of tax is this most likely to be?

Correct AnswerverifiedShow Answer

To minimize taxes owed,you should do the following if you expect to have a higher tax rate next year:

Correct AnswerverifiedShow Answer

George Washburn had earnings from his salary of $34,000,interest on savings of $800,a contribution to a traditional individual retirement account of $1,500,and dividends from mutual funds of $600.George's adjusted income would be:

Correct AnswerverifiedShow Answer

What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?

Correct AnswerverifiedThe 1040 form used by a taxpayer is infl...View AnswerShow Answer

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

Correct AnswerverifiedShow Answer

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The 1040 form used by a taxpayer is infl...
View Answer

Correct Answer
verified

Correct Answer
verified