TAXES
Irma and Dave Cedeno have a potential $2,000 capital gain on stock they have owned 11 months. They are in the 28 percent marginal tax bracket. How much longer would they have to hold this stock to reduce the tax liability on this gain?
1 month and 1 day
Earned income is reported to the recipient on a
W-2 form.
Taxable income is determined by subtracting all but which one of the following from gross income. (This one's hard)
credits
All of a taxpayer's income is subject to federal income taxes.
false
April 25th is the day that your federal income taxes must be filed.
false
If you earn enough extra income to be placed in a higher tax bracket and have a higher marginal tax rate, the new rate will be applied to all of your taxable income.
false
Life insurance benefits received are taxable income.
false
Personal income taxes are paid on all of your income.
false
The money you receive back because you have overpaid your taxes is called a tax return.
false
The tax rate paid on your last dollar of income is called the average tax rate.
false
A tax that requires a higher-income person to pay a higher percentage of his or her income in taxes is called a ____ tax.
progressive
A Health Savings Account (HSA) and a Flexible Spending Account (FSA) are accounts in which you can put money from your work wages or work salary on a pre-tax basis.
true
A long-term capital gain (or loss) occurs when the asset is held for over one year.
true
Bonuses given by employers must be reported to the IRS on your income tax return
true
Each year the tax brackets are adjusted to reduce the effects of inflation.
true
State sales tax is an example of a regressive tax.
true
The Internal Revenue Service is the agency that collects federal income taxes.
true
The amount of the standard deduction depends on one's filing status (meaning whether you are filing as a married couple or individually).
true
The objective in effective tax planning is to legally reduce gross income to the lowest possible taxable income.
true