Tax Returns
Ralph's annual income is about $32,000. Based on his expenses illustrated in the graph below, roughly how much should Ralph expect to pay in taxes this year?
11,200
What percentage of your taxes went to funding public safety? a.10.49% b.12.06% c.11.72% d.8.94%
A
Leigh is the head of a household and earned $43,763 in taxable income this year. Over the course of the year, her employer withheld a total of $6322 for income tax. Based on the table below, what can Leigh expect when her taxes are due? a.Leigh will owe the IRS $379. b.Leigh will owe the IRS $966. c.Leigh will receive a refund of $316. d.Leigh will receive a refund of $558.
C
Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike's total taxable income? a.$72,643 b.$75,479 c.$71,829 d.$66,129
C
Say you are filing as a single taxpayer. You have a gross income of $61,026 and claim two exemptions. You can make a deduction of $2,871 for interest on your mortgage, a deduction of $2,376 for property tax, an adjustment of $3,206 for business losses, an adjustment of $2,575 for contributions to your retirement plan, a deduction of $2,682 for medical expenses, and an adjustment of $2,440 for business expenses. If exemptions are each worth $3,650 and the standard deduction is $5,700, what is your total taxable income? a.$39,805 b.$35,526 c.$37,576 d.$43,276
C
0.05% of all tax returns filed electronically contain errors, but 20% of all tax returns filed manually contain errors. If 3.3 million tax returns are filed each way, how many more manually filed returns containing errors will there be than electronically filed returns containing errors? a.330,825 b.643,500 c.321,750 d.658,350
D
Doug is filing singly. His net taxable income is $80,575. Every week, $304 is withheld from his earnings for income tax. Based on the table below, what can Doug expect when his taxes are due? a.Doug will receive a refund of $123. b.Doug will receive a refund of $2,977. c.Doug will owe an additional $1,125. d.Doug will owe an additional $731
D
Kevin, while calculating his tax adjustments, notes that he can make adjustments of $3,435 for contributions to his retirement plan, $3,393 for business losses, and $1,128 for business expenses. If Kevin's gross income is $45,942, what is his adjusted gross income? a.$53,898 b.$40,242 c.$41,421 d.$37,986
D
Wendy is calculating her tax deductions. She finds that she can deduct $5,522 from medical expenses, $7,240 from charitable donations, and $2,126 from property taxes. What is Wendy's total deduction? a.$5,700 b.$15,104 c.$18,284 d.$14,888
D
Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345.40. What is Andrew's net federal income tax rate? a.8.47% b.15.1% c.11.8% d.9.1%
C
Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income? a.$50,193 b.$41,843 c.$48,403 d.$52,793
C
Chris is calculating his deductions for his tax return. He is filing singly. He can claim $1,813 from property taxes, $1,513 from medical expenses, and $761 from state income tax. The standard deduction for a single filer is $5,700. How does the standard deduction compare to Chris's deductions? a.Chris's deductions are $1,437 better than the standard deduction. b.Chris's deductions are $4,087 better than the standard deduction. c.The standard deduction is $1,613 better than Chris's deductions. d.The standard deduction is $664 better than Chris's deductions.
C
Craig is single and lives alone. He earns a respectable salary, but the bulk of his income comes from his property holdings and stock market investments. Craig is well versed in tax law and has many deductions to claim, hoping to pay the smallest amount possible. Recommend the appropriate 1040 form for Craig. a.1040-EZ b.1040-Plus c.1040 d.1040-A
C
Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government doesn't use all of the tax money it collects in taxes on existing expenditures, it may end up with extra money, called surplus. Which of the following could result in a county government budget in surplus? a.The government gives $100,000 to build and maintain a new sight-seeing attraction without adjusting existing expenditures. b.The government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures. c.The government gives financial assistance to a neighboring county without adjusting taxes. d.The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.
D
Sandy and Alex are married, with no dependents. They wish to file a joint tax return. Both of them work, but their combined salaries only put them at a slightly above-average income. They would also like to deduct interest paid on their student loans. Recommend an appropriate 1040 form for Sandy and Alex to fill out. a.1040 b.1040-EZ c.1040-2 d.1040-A
D
Explain how filing your tax return online can make payments easier.
Filing your tax returns online make payments easier because it allows you to file early and pay later. Filing online avoids loss or delay of your payments and it is paperless. Electronic tax returns allow you to make online payments, which are faster and simpler than paying by check. There is no chance of an electronic payment being lost in the mail. Also, electronic filing allows for the file-now-pay-later system, which can make it simpler to budget for any taxes due.
