2.5 Quiz Chapter 3

Daniel Simmons arrived at the following tax information: Gross salary $ 54,250 Interest earnings $ 75 Dividend income $ 140 One personal exemption $ 3,950 Itemized deductions $ 7,000 Adjustments to income $ 850 What amount would he report as taxable income?

$42,665

Adjustments to income include all of the following except

Charity contributions.

When calculating federal income taxes, "gross income" includes all of the following except

Earned Income Taxes

Tanya is a single low-income working parent, and Fred is a single high-income working parent. Because of her status, Tanya, but not Fred, may be eligible for the

Earned income credit

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?

Married, filing a joint return

Taxes on earnings that fund old age, survivor, and disability insurance benefits are called

Social Security Taxes

Joseph needs to complete his income taxes for the year. He has already calculated his adjusted gross income. What does he need to do next?

Subtract his itemized deductions

Income that is taxed at a later date is

Tax-deferred Income

Income that is not subject to tax is called

Tax-exempt income

If $4,323 was withheld during the year and taxes owed were $4,122, would the person owe an additional amount or receive a refund? What is the amount?

The person would receive a refund of $ 201.