Exam 4: Using Tax Concepts for Planning

Lynn and Robert are married and support Lynn's father who has no income,and Robert's mother,who has no income.If Lynn and Robert file a joint return,how many exemptions may they claim?

________ is withheld at a rate of 6.2% on the first $118,500 of your 2015 earnings.

Use the following two columns of items to answer the matching questions below: -dividend

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

Prudent tax planning considers ways to

Taxpayers who are blind get the benefit of

Sally's adjusted gross income is $38,000.She does not own a home,but has charitable contributions of $1,500 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 $6300 and one personal exemption of $4,000.What is Sally's taxable income?

Jerry is divorced and has two children that live with him.What filing status should Jerry claim on his tax return?

Which of the following statements is not true regarding FICA taxes paid?

Students and other taxpayers earning less than $100,000 a year with no dependents are eligible to file the simplest tax return,which is the 1040E-Z.

Which of the following taxes is only paid on the first $118,500 of your salary?

Comment on a large tax refund.Is it a good use of your funds considering present value concepts? Does the government pay you interest? What can you do to change your withholding or recalculate it?

The timing on the sale of an investment asset earning a capital gain makes little or no difference in the amount of taxes that are owed.

Employee contributions to qualified Individual Retirement Accounts (IRAs)and interest paid on student loans are adjusted from gross income to calculate a taxpayer's adjusted gross income.

Which item below cannot be taken as an itemized deduction?

Tax credits amount to the same savings as tax deductions.

In 2001,the tax laws were changed to allow substantial tax benefits for parents who wish to set aside money for their children's future college expenses.

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

You should claim itemized deductions if

A young couple buying a home would usually be better off to take the standard deduction rather than itemizing deductions.