taxes: pers fin retake
a tax audit is an
IRS attempt to verify accuracy of return
for tax purposes, head-of-household refers to
a single individual w dependents
tax credits reduce your ___
tax liablity
the main objective of tax planning is to max. the amt of money you keep my min the amt of taxes you pay
true
you should itemize deductions when total itemized deductions exceed the standard deduction
true
a short-term capital gain, a investment held for more than 12 months, would be taxed at the same rate as earned income
false
gifts received from family and friends are included in gross income
false
marginal tax and average tax refer to the same thing
false
one's marginal tax rate is typical lower than one's average tax rate
false
the irs is responsible for writing the federal income tax codes
false
by filing a tax ext, one does not have to pay his income tax liability until apr 15
false (can turn in after apr 15 without incurring penalties)
the personal exemption for a student can be take by both the parent and by the child
false (common sense ??)
income tax refunds are automatically sent to those who qualify for refunds no later than april 15
false (file extensions)
as a single taxpayer w no dependents, one is generally eligible to file as "head of household"
false (head of household = single w atl one dependent)
a long-term capital gain, a investment held for more than 12 months, would be taxed at the same rate as earned income
false (less)
there is no limit to the amt of ss withheld annually
false (there is a limit)
if you are married, you can legally file a single tax return
false (you're married ?? duh)
the standard deduction is a blanket deduction that depends on the taxpayers
filing status, age, and vision (all of these)
your take-home pay is what you are left w after subtracting withholdings from your ___
gross earnings
the fed govt gets the majority of its revenue from the ___ tax
income
henry is married to lillian, and they have two dependent children. henry can legally file which of the following filing statuses
married filing jointly
you purchased and lived in your home 8 years. now you have received an excellent promotion, but you will have to sell your home and move to another community. the $200,000 capital gain on the home sold will ______
not be taxable because the home was your principal residence
the federal income tax is ____
progressie
____ income is subject to federal taxes
taxable
connie is a 20 year old college student who earned $8000 and spent it all on her support during the year. her parents may claim her as a tax dependent as long as ____
they contribute more than half her support for the year
itemized deductions could include certain taxes, medical expenditures, and home mortgage interest
tre
when a child qualifies as a dependent on her parent's return, the child cannot take a personal exemption for herself
tre
The federal personal income tax is a progressive rate
true
an investment must be owned over one year in order to qualify for long-term capital gains treatment
true
estimated tax payments must be made by those who do not have taxes deducted from their earnings
true
if you are eligible to receive a tax refund you will have to file a tax return to get the refund
true
personal exemptions are tax deductions based on the number of taxpayers and dependents in the taxpayers household
true
tax avoidance is legal, tax evasion is illegal
true
