TAXES

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

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

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 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

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


Ensembles d'études connexes

Physics Test 1 Multiple Choice Questions

View Set

Respuestas de las preguntas 35-55

View Set

Regulation E - Electronic Fund Transfers

View Set

Chapter 55: Digestion of Carbohydrates

View Set