Quiz #2

The IRS has made online filing free for millions of taxpayers through the Free File Alliance. True False

True

GDP = C + I + G + X What does each symbol stand for and ? 1. GDP = ____________________ 2. C = ____________________ 3. I = ____________________ 4. G = ____________________ 5. X = ____________________

1. GDP = Gross Domestic Product 2. C = Consumer Spending 3. I = Investment 4. G = Government 5. X = Net Export Position

A tax imposed on the value of a person's property at the time of death is called a(n) A. Estate tax B. Excise tax C. Income tax D. Real estate tax E. Sales tax

A

Using the table below, identify the following for an individual with taxable income of $90,000. a. Total taxes paid b. Marginal tax rate c. Average tax rate

A.) 90,000 - 78,850 = 11,150 * .28 = 3,122 + 16,056.25 = $19,178.25 B.) 28% C.) 21.31%

If Brenda wants to pay her fair share of taxes, no more and no less, she should practice A. Tax evasion B. Tax avoidance C. Tax elimination D. Tax maximization E. Tax acceleration

B

At the end of the year, employees receive a ____ form that reports annual earnings and the amounts deducted for taxes from their employer. A. 1040 B. 1099 C. W-2 D. W-4 E. Schedule A

C

The maximum than an individual can contribute to a Roth IRA each year is A. $1,000 B. $3,000 C. $5,000 D. $10,000 E. $15,500

C

This tax is a major financial planning factor for most people because it is sometimes imposed at the federal, state, and local levels. A. Estate tax B. Excise tax C. Income tax D. Real estate tax E. Sales tax

C

If Diane was in a 28% tax bracket and received a $2,000 tax credit, how much would her taxes be reduced? A. $28 B. $56 C. $560 D. $1,440 E. $2,000

E

Federal income tax returns must be filed by April 1 of each year. True False

False

If your taxes due are greater than the amount you had withheld for the year, then you should expect a refund after you complete your federal income taxes. True False

False