Personal Finance

a ______ form is used to amend a previously filed tax return

1040X

if you want to amend a previous return, you will need to file a ______ form

1040X

If you are in the 28% tax bracket and owe $20,000 on $100,000 of taxable income, your average tax rate and marginal tax rate would be, respectively:

20% for average and 28% for marginal

Which type of financial institution typically charges higher rates?

Check cashing outlets

_____ banks are organized as corporations, with investors contributing the capital for operations

Commercial

Which of the following is not a deductible tax?

Excuse tax

which of the following would potentially of tax free withdrawals A 1099 B traditional IRA C 401(k) plan D Roth IRA

Roth IRA

_____ 15 is the due date for the third installment for estimated tax

September

True or False: Income tax is paid during the year through withholding from paychecks and/or estimated payments

True

in ______ A third-party tries to settle a grievance through a legally binding process

arbitration

A tax ________ directly reduces taxes owed

credit

Depreciation is the largest _____ Cost of a new vehicle

fixed

Wanda Green wants to take out before your loan to purchase a car. What time of computation would she used to calculate her monthly pay amount

present value of an annual tax deduction r

Estate taxes are calculated on the ____ of a persons property at death.

value

recent tax strategy employed by the government is to allow employees with healthcare FSA's to carry over up to $____ of unused funds

500

when comparing saving accounts rates of return, you should choose one that

beats the rate of inflation

The rate of ______ is the percentage increase in the value of savings as a result of interest earned.

return

Interest income from _____ bonds issued by state and local governments is not subject to federal tax.

municipal

true or false: a tax deduction reduces tax liability directly, dollar for dollar

false. A tax deduction reduces taxes indirectly.

true or false: only cash contributions to qualified charitable organizations are allowed as deduction

false. contributions of property are also allowed as deductions

money market accounts at commercial banks are insured by _______, whereas money market funds are not

federal deposit insurance

which of the following is not an IRS service for tax assistance? A Ernst & Young tax guide B walk in service C publications such as publication 17 D phone hotline

A ernst and young tax guide

benefits of US savings bonds include A lower rates for early redemption B government guarantee C exemption from state and local taxes D low minimum deposit

B government guarantee CExemption from state and local taxes

_______ deductions are expenses a taxpayer is allowed to deduct form adjusted gross income.

Itemized

when taxes are added to a product for each stage in the manufacturing process, this is called

VAT (value added tax)

The stages is that an individual needs to go through based on stages in the family and financial needs is called the

adult life cycle rn

Unlimited warranty covers only certain aspects of the product and requires the buyer to pay part of the costs for

cc c

The simplest type of IRS audit is the _______ audit. This is taken directly from the text

correspondence

A tax _____ is an amount subtracted from adjusted gross income to arrive at taxable income

deduction

A tax ______ reduces taxable income, thereby reducing the tax liability.

deduction

a tax ______ is an amount subtracted from adjusted gross income to arrive at taxable income

deduction. (a tax deduction reduces taxable income)

depositors

depositors

the two parts of interest on an I bond are

fixed rate of interest for the life of the bond inflation rate changes semiannually

the two main types of taxes on wages and salary are federal and state _____ tax and Social Security

income

As of 2020, the IRA contribution limit for workers under age 50 with $6000

true

true or false: if you itemize your deductions, you can deduct contributions made to charities and amount paid for real estate taxes

true

a _______ savings bank is owned by depositors and specialize in savings and mortgages

mutual

All of the following are deposit institutions except A commercial banks B insurance companies C savings and loan associations D credit unions

insurance companies

tax avoidance means using _______ strategies to reduce taxes, while tax ______ involves using illegal means to lower tax liability.

legitimate evasion

A drawback of US savings bonds is

lower rates for early redemption

Which of the following best describes where the home can be a tax shelter

mortgage interest and real estate taxes or text deductible, which helps lower the cost of homeownership.

Which of the following taxes are deductible for the person/family paying them?

real estate property taxes state income taxes

True or False: Income tax is calculated on adjusted gross income less deduction and exemptions

true

savings bond that has an interest rate based on two components is an

I bond

which tool provides options for checking your refund status, requesting tax records, locating free tax prep help, and accessing other interactive tools?

IRS2Go app

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

estate tax

a _____ fund is an account used for savings offered by investment companies

money market

Your ______ income is the basis for computing the amount of tax owed.

taxable

what are the five filing status categories for federal income tax purposes?

single married (filing joint return) married (filing separate) head of household qualifying widow/widower

____ income is the net amount of income, after considering allowable deductions, on which tax is computed

taxable

consumer credit through installment payments became popular in the early part of the 20th century due to:

the popularity of the automobile

the calculation of your total tax due begins by using your taxable income with either tax tables or a tax schedule

true

Taxpayers Pay income taxes either through payroll ______ or through estimated tax _____

withholding payments

if you have made estimated quarterly payments totaling $4000 and your annual taxes owed total $3700 then which of the following is true?

you will receive a refund of $300

which of the following would have tax deductible interest

home mortgage

Family members may only charge interest they would have earned on the money if they had deposited it in a ______ account

savings

A money market fund is a

savings instrument

All but how many states currently have some type of state income tax?

seven

a _____ draft account is an interest-bearing checking account at a credit union

share

A line of credit is a ____-term loan that is approved before the money is actually needed.

short

which of the following is a prearranged loan for a specified amount of money that is accessed with special checks?

a revolving check credit a bank line of credit

an ______ warranty usually writing is created by the seller or manufacturers and has two forms: the full warranty and the limited warranty r is is

expressing your