Personal Finance True or false section
Personal exemptions are tax deductions based on the number of taxpayers and dependents in the taxpayer's household
True
Tax avoidance is legal, tax evasion is illegal.
True
A credit limit refers to the maximum amount the cardholder can owe the issuer at any point in time
False
A long-term capital gain, a investment held for more than 12 months, would be taxed at the same rate as earned income
False
A short-term capital gain, a investment held for more than 12 months, would be taxed at the same rate as earned income
False
As a single taxpayer with no dependents, one is generally eligible to file as "head of household."
False
Credit cards with very low minimum balance requirements are in the consumer's best interest
False
Gift recieved from family and friends are included in gross income
False
If you are married, you can legally file a single tax return
False
Income tax refunds are automatically sent to those who qualify for refunds no later than April 15.
False
It is safe, and often required, to give your social secrurity number as a form of identification when using a credit card
False
Marginal tax and average tax rate refer to the same thing
False
One's marginal tax rate is typical lower than one's average tax rate
False
Paying only the minimum payment each time on a credit card usually enables one to pay off the balance fairly quickly
False
The Internal Revenue Service is responsible for writing the federal income tax codes
False
The personal exemption for a student can be taken both by the parent and by the child
False
There is no limut on the amount of social security withheld annually
False
A credit report is routinely used to predict credit worthiness
True
An investment must be owned over one year in order to qualify for long-term capital gains treatment
True
By filing a tax extension, one does not have to pay his income tax liability until August 15
True
Estimated tax payments must be made by those who do not have taxes deducted from thier earnings
True
Having a checking account tells a creditor that you have some experience in managing your own funds
True
Having arranged and fully repaid a small loan should help improve creditworthiness.
True
If you are eligible to recieve a tax refund, you will have to file a tax return to get the refund
True
Individuals with better credit ratings usually secure higher credit limits
True
The Federal personal income tax is a progressive tax
True
The main objective of tax planning is to maximize the amount of money you keep by minimizing the amount of taxes you pay
True
The most common forms of open account credit are bank credit cards and retail charge cards
True
The purpose of a credit card report is to evaluate the kind of risk you pose to the lender
True
When a child qualifies as a dependent on her parent's return, the child cannot take a personal exemption for herself
True
You should itemize deductions when total itemized deductions exceed the standard deduction.
True
itemized deductions could include certain taxes, medical expenditures, and home mortgage interest
True