financial stewardship quiz #2

a. estate tax

a tax imposed on the value of a person;s property at the time of death is called a(n)

true

the IRS has made online filing free for millions of tax payers through the free file alliance

c. 5,000

the maximum than an individual can contribute to a Roth IRA each year is

c. income tax

this tax is a major financial planning factor for most people because it is sometimes imposed at the federal, state, and local levels

c. W-2

at the end of the year, employees receive a _______ form that reports annual earning and the amounts deducted for taxes from their employer

false

federal income tax returns must be filled by April 1 of each year

a. total taxes paid = 90,000 - 78,850 = 11,150 x .28 = 3,122 + 16,056 x 25 b. marginal tax rate = 28% =$19,178.25 c. average tax rate = 21.3%

identify the following for an individual w taxable income of $90,000

C = consumer spending

identity each symbol and what is stands for GDP = C + I+ G + X

G = government spending

identity each symbol and what is stands for GDP = C + I+ G + X

GDP = gross domestic producer

identity each symbol and what is stands for GDP = C + I+ G + X

I = investment spending

identity each symbol and what is stands for GDP = C + I+ G + X

X = net export

identity each symbol and what is stands for GDP = C + I+ G + X

e. 2,000

if Diane was in a 28% tax bracket and received a $2,000 tax credit, how much would her taxes be reduced?

b. tax avoidance

if brenda wants to pay her fair share of taxes, no more and no less, she should practice

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