taxes: pers fin retake

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a tax audit is an

IRS attempt to verify accuracy of return

for tax purposes, head-of-household refers to

a single individual w dependents

tax credits reduce your ___

tax liablity

the main objective of tax planning is to max. the amt of money you keep my min the amt of taxes you pay

true

you should itemize deductions when total itemized deductions exceed the standard deduction

true

a short-term capital gain, a investment held for more than 12 months, would be taxed at the same rate as earned income

false

gifts received from family and friends are included in gross income

false

marginal tax and average tax refer to the same thing

false

one's marginal tax rate is typical lower than one's average tax rate

false

the irs is responsible for writing the federal income tax codes

false

by filing a tax ext, one does not have to pay his income tax liability until apr 15

false (can turn in after apr 15 without incurring penalties)

the personal exemption for a student can be take by both the parent and by the child

false (common sense ??)

income tax refunds are automatically sent to those who qualify for refunds no later than april 15

false (file extensions)

as a single taxpayer w no dependents, one is generally eligible to file as "head of household"

false (head of household = single w atl one dependent)

a long-term capital gain, a investment held for more than 12 months, would be taxed at the same rate as earned income

false (less)

there is no limit to the amt of ss withheld annually

false (there is a limit)

if you are married, you can legally file a single tax return

false (you're married ?? duh)

the standard deduction is a blanket deduction that depends on the taxpayers

filing status, age, and vision (all of these)

your take-home pay is what you are left w after subtracting withholdings from your ___

gross earnings

the fed govt gets the majority of its revenue from the ___ tax

income

henry is married to lillian, and they have two dependent children. henry can legally file which of the following filing statuses

married filing jointly

you purchased and lived in your home 8 years. now you have received an excellent promotion, but you will have to sell your home and move to another community. the $200,000 capital gain on the home sold will ______

not be taxable because the home was your principal residence

the federal income tax is ____

progressie

____ income is subject to federal taxes

taxable

connie is a 20 year old college student who earned $8000 and spent it all on her support during the year. her parents may claim her as a tax dependent as long as ____

they contribute more than half her support for the year

itemized deductions could include certain taxes, medical expenditures, and home mortgage interest

tre

when a child qualifies as a dependent on her parent's return, the child cannot take a personal exemption for herself

tre

The federal personal income tax is a progressive rate

true

an investment must be owned over one year in order to qualify for long-term capital gains treatment

true

estimated tax payments must be made by those who do not have taxes deducted from their earnings

true

if you are eligible to receive a tax refund you will have to file a tax return to get the refund

true

personal exemptions are tax deductions based on the number of taxpayers and dependents in the taxpayers household

true

tax avoidance is legal, tax evasion is illegal

true


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