Exam 4: Using Tax Concepts for Planning

If you are married and claiming the standard deduction, and gross income is $100,000 and the standard deduction is $24,000, what is your taxable income?

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

If you own stock that has increased in price, it would be best to sell it after you have owned it for at least

Jane purchased General Motors stock for $20,000. Seven years later, in 2015, she sold the stock for $35,000. What is Jane's gain or loss?

You should claim itemized deductions if

Purchasing which of the following items on credit may help reduce your tax bill?

The government usually adjusts itemized deduction amounts annually to account for inflation.

A dollar's worth of tax credits is more valuable than a dollar's worth of deductions.

Interest expense paid on both home loans and car loans is deductible from your income tax.

Sally's adjusted gross income is $38,000. She owns a home and has mortgage interest expense of $9500, charitable contributions of $1500, property tax of $7,000 and interest on her car loan of $2,100. This year she also had medical expenses of $2,000. She is allowed a standard deduction of $12,000. What is Sally's taxable income?

FICA taxes include two components, which consist of

Gross income includes which of the following?

Adjusted gross income is calculated by subtracting

Stephanie, who was divorced in 2015, had filed a joint tax return with her husband in 2014. During 2015, she did not remarry and continued to maintain her home in which her three dependent children lived. In preparation of her 2015 tax return, Stephanie should file as