Personal Financial Management Quiz 3

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

T

You are preparing your own tax return. The least costly source for answering your questions would be

IRS 800 numbers.

Tax evasion is a legal means to avoid tax liabilities.

F

The Federal personal income tax is a flat tax.

F

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

F

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

Married filing jointly

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

T

Itemized non-business expenses do not include

life insurance premiums.

Medical and dental expenses may be included as itemized deductions

only in the amount in excess of 7.5% of adjusted gross income.

A capital gain is the result of

selling an asset for more than purchase price.