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Itemized deductions are recorded on

Schedule A.

Which of the following would qualify a person for an exemption when computing taxable income?

a dependent

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in

adjusted gross income

Which of the following would be deducted from gross income to obtain adjusted gross income?

alimony payments

Kelly Vernon wants her tax return prepared by a government approved tax expert. Which of the following tax preparers should Kelly use?

an enrolled agent

A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is

an exemption

An example of an itemized deduction is

certain job-related travel expenses

Which of the following is an example of a tax credit?

child and dependent care expenses

Money received by an individual for personal effort is ____________ income

earned

Money received by an individual for personal effort is ____________ income.

earned

The Roth IRA differs from the regular IRA in that

earnings on the account are tax free after five years.

What type of tax is imposed on the value of an individual's property at the time of his or her death?

estate

The main purpose of taxes is to

generate revenue for funding government programs

Most people pay federal income tax by

having amounts withheld from income.

Money received in the form of dividends or interest is ____________ income

investment

The Form 1040 is most helpful to a person who

itemizes deductions

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would

owe $375

Earnings from a limited partnership would be an example of ____________ income.

passive

A taxpayer whose spouse recently died is most likely to use the ____________ filing status

qualifying widow or widower

A taxpayer whose spouse recently died is most likely to use the ____________ filing status.

qualifying widow or widower

The ______________ property tax is based on the value of land and buildings.

real estate

An expense that would be included in the itemized deductions of a taxpayer is

real estate property taxes

Parents can reduce their taxes by

using a child-care tax credit.

A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes by

$50.