Deck 6: Taxes

Question 1

Either federal unemployment tax or state unemployment tax is paid by an employer, but not both.

Answer 1

False

Question 2

Wen Hung is buying a building to open an alterations business. One building costs $205,000 with a property tax rate of $4.45 per $100 on 60% assessed value. A second building costs $195,000 with a property tax rate of 42 mills per dollar on 75% assessed value. What is the difference in the property tax amounts?

A) $669
B) $875
C) $932
D) $1,125

Answer 2

A

Question 3

Jamika wants to calculate her property taxes. She looks on her tax statement and sees that the tax rate is 47 mills per dollar. How can she calculate her property taxes?

A) Divide 47 by 1,000. Then multiply the market value of her property by the product.
B) Multiply 47 by 1,000. Then multiply the market value of her property by the product.
C) Divide 47 by 1,000. Then multiply the assessed value of her property by the product.
D) Divide the assessed value of her property by 47.

Answer 3

C

Question 4

An individual or couple will choose to itemize their deductions when those deductions are less than the standard deduction.

Question 5

Janet and Pat McGuire are married and file a 1040 jointly. Janet earns $28,000 and Pat earns $18,500 for the year. They have two children. They have earned interest income of $240. Janet contributed $2,000 to her IRA and Pat contributed $1,500 to his. Their itemized deductions are $3,750 in medical and dental expenses, $4,500 in real estate taxes, $7,480 in home mortgage interest, $1,000 in student loan interest, $1,100 in personal property taxes, and $675 in charitable contributions. Together, they had $3,200 withheld for taxes. Use a tax table. Which is true about how much Janet and Pat either owe in taxes or have due as a refund?

A) owe $1,802
B) refund of $1,802
C) owe $1,521
D) refund of $1,521

Question 6

Angela Rodriguez works as a delivery driver. She earned $7,250 during the first quarter. By the end of the second quarter, her total earnings were $14,870. How much federal unemployment tax will her employer owe for her second quarter earnings if the FUTA rate in her state is 0.08%?

A) $0
B) $56
C) $58
D) $580

Question 7

Mary Slovick is buying a house. The first house she considers is assessed for $230,000 and has a property tax rate of $4.25 per $100. A second house has an assessment value of $250,000 and has a property tax rate of 34 mills per dollar. What is the difference in the property tax amounts?

A) $1,275
B) $2,550
C) $8,500
D) $9,775

Question 8

The tax rate on Jennifer's house is 28 mills per dollar. The market value of her house is $185,000 and the assessed value is 75%. How much tax is due?

A) $5,180
B) $3,885
C) $518
D) $389

Question 9

Christina has recently been hired as an account assistant. Which form will Christina's employer require her to complete in order to have the appropriate amount of federal taxes withheld from her wages?

A) 1099-INT
B) 1040EZ
C) W-4
D) W-2

Question 10

The tax rate on the Callahan's house is $2.25 per $100. The market value of their home is $526,000 and the assessed value is 65%. How much tax is due?

A) $11,835.75
B) $8,962.50
C) $7,762.50
D) $7,692.75

Question 11

Which is not considered taxable income?

A) lottery winnings
B) unemployment benefits
C) rents received
D) health savings account deposits

Question 12

The Technology Center had total wages of $316,900 in the first quarter. The SUTA rate in that state is 5.5%. How much state unemployment tax will the company pay if none of its employees reached the maximum amount of $9,000?

A) $4,950.50
B) $15,845.00
C) $17,429.50
D) $174,295.00

Question 13

Jan and Frank Campasio qualify to use a 1040EZ form for their taxes. Their total wages for the year were $59,800. They have no dependents except for themselves. What is their taxable income?

A) $59,800
B) $51,300
C) $41,900
D) $39,800

Question 14

When a taxed is levied, it means that a tax is assessed or collected.

Question 15

A spreadsheet has an employee's adjusted gross income in Cell E2, standard deduction in Cell F2, and exemption allowances in Cell G2. Which of the following is a formula to calculate taxable income?

A) =E2-F2-G2
B) =E2-F2
C) =E2-G2
D) =E2-F2+G2

Question 16

Rebecca Miller's wages for the year were $22,000. She is single and has no dependents besides herself. Rebecca received a 1099-INT that shows interest income of $119. According to her W-2, Rebecca paid $1,100 in federal taxes. She uses a 1040EZ to determine her taxes. Use a tax table to find how much more in taxes Rebecca owes.

A) $459
B) $451
C) $279
D) $218

Question 17

Kathy's house is assessed at $113,000. This year, she owes $6,780 in property taxes. What is her tax rate?

A) 5.50%
B) 5.75%
C) 6.0%
D) 6.5%

Question 18

A low-income worker who qualifies for the EIC, Earned Income Tax Credit, could have a credit that is more than the federal taxes withheld.

Question 19

A property has an assessed value of 80% of its fair market value. If you were writing an Excel formula to calculate the assessed value of the property, what value would be used to multiply by the fair market value?

A) 8
B) 80
C) 0.8
D) 0.08

Question 20

A tax credit and a tax deduction have the same meaning.

Question 21

Raymond and Jackie Davis are married and file a 1040 jointly. Raymond earns $35,000 and Jackie earns $43,400 for the year. They have five children. They have earned interest of $800 and both contributed $3,500 to individual IRAs. Their itemized deductions are $6,281 in medical and dental expenses, $7,290 in real estate taxes, $10,120 in home mortgage interest, $1,150 in student loan interest, and $4,800 in charitable contributions. Calculate Raymond and Jackie's taxable income.

Question 22

Mr. and Mrs. Evans want to buy a house. One house they are considering is assessed for $116,000 and has a property tax rate of 41.2 mill per dollar. A second house is assessed for $125,000 and has a property tax rate of $3.50 per $100. What is the difference in the property tax amounts?

Question 23

Alan Glasgow is single and worked two jobs during the year. He earned $13,500 at one job and had $738 in taxes withheld. He worked another job earning $8,729 and had $575 in taxes withheld. Alan deducts $985 in interest on a student loan. He files a 1040A. Use a tax table. What is the tax owed or refund for Alan?

Question 24

When completing a 1040EZ form, use this formula:
_________________ = Total Income - Standard Deduction - Exemptions

Question 25

The Maxwell's house is assessed at $360,500. This year, they owe $11,716.25 in property taxes. What is their tax rate?

Question 26

The tax rate on the Hamilton's house is $50 per $1,000. The market value of their house is $289,000 and the assessed value is 60%. How much tax is due?

Question 27

Calculate the federal unemployment tax due for an employee with gross earnings of $10,450. Use 0.08% up to and including $7,000.

Question 28

Baji earned $5,900 the first quarter. By the end of the second quarter, his total earnings were $10,850. How much state unemployment tax did Baji's employer pay for Baji's second quarter earnings if the SUTA rate is 5.3%?

Question 29

Malcolm qualifies to use a 1040EZ form for his taxes. His total wages for the year were $19,800. He does not claim himself as a dependent because his parents claim him. What is his taxable income?

Question 30

A school district has placed a tax levy on the ballot requesting 6.7 mills because a previous 4.9 mill levy is due to expire. The assessment rate in the district is 60%, and the total market value of property in the district is $768,000,000. How much additional funding will the new levy generate for the school district?

Question 31

For couples who are married filing jointly and that itemize, if the amount itemized is over ________, use the itemized figure. If the itemized deductions are less than this amount, then use the standard deduction.

Question 32

Dubois County needs $15,000,000 to build a new courthouse. The real property in the county is assessed at $469,000,000. What property tax rate is needed to raise $15,000,000? Round to the nearest tenth percent.

Question 33

Marion County is in need of $12,000,000 to replace the sewer system. The real property in the county is assessed at $691,000,000. What property tax rate would be required to raise $12,000,000, rounded to the nearest tenth of a percent?

Question 34

Selina is single with a minor daughter. Besides the standard deduction of $5,450, how much should she deduct from her taxes for exemptions?

Question 35

Mitchell Joseph is married. His wife Jennifer is currently unemployed, and she does not receive unemployment benefits. Mitchell earned $24,500 as a machinist. Mitchell's income tax withholding was $843. Mitchell and Jennifer had $785 in capital gains and $245 in interest income. They jointly file a 1040A when doing their taxes. Using a tax table, determine how much additional tax they owe or what is their refund.

Question 36

_______________ is the additional tax form that must be completed when itemizing deductions.

Question 37

When a number stored in one cell, such as FUTA tax rate, is going to be used in a formula several times in a spreadsheet, an _____________________________ is used so that when the formula is copied to other cells the pointer to the tax rate does not change.

Question 38

The tax rate on the Scanlon's house is 34 mills per dollar. The market value of their house is $92,000 and the assessed value is 80%. How much tax is due?

Question 39

Preston's house is assessed at $145,000. He received a tax assessment for $9,425. What is his tax rate?

Question 40

Alfred works as a cook. The owner of the restaurant where he works is calculating Alfred's FUTA. Alfred's first quarter earnings were $3,950. By the end of the second quarter, Alfred's gross earnings were $8,200. How much FUTA will Alfred's employer pay for the second quarter earnings if the FUTA rate in that state is 2.7%, up to and including $7,000?

Question 41

The assessed value of a property is in Cell B8 of a spreadsheet and the tax rate per $100 of assessed value is in Cell C6. What formula could be entered in Cell F8 to calculate the tax due? Use an absolute cell reference.

Question 43

Who is responsible for paying federal and state unemployment taxes?

Question 44

Jeff and Kathy O'Connor file a 1040 jointly. Jeff earned $39,000 and Kathy earned $13,700 working part time. The O'Connors have four children. Jeff contributed $3,500 to his IRA. They had $5,200 in medical and dental expenses. They paid $4,390 in real estate taxes, $7,260 in mortgage interest, and made $1,500 in charitable contributions. Together they had $1,825 withheld for income tax during the year. Using a tax table, how much additional tax do they owe or what is their refund?

Question 45

A state has a state unemployment tax rate of 5.2%. What is the FUTA rate in that state?

Question 46

Roger Milken had gross earnings of $7,700 the first quarter and also the second quarter. If Roger lives in a state with a SUTA of 6% for gross earnings up to and including $9,000, how much will Roger's employer pay in state unemployment tax the first quarter and the second quarter?

Question 47

Kelly Thomas is single and earned $18,500 as a sales clerk during the year. She paid student loan interest of $719 and contributed $1,800 to an IRA. Her income tax withholding was $575. She files a 1040A when doing her taxes. Using a tax table, determine the additional tax owed or the refund.

Question 48

Pyuish and Vi Kashia file a 1040 jointly. Pyuish earned $37,570 and Vi earned $41,230. The Kashias have three children. Both Pyuish and Vi contributed $2,000 to their IRAs. They had $3,129 in medical and dental expenses. They paid $2,670 in real estate taxes, $1,220 in student loan interest, $4,890 in mortgage interest, and made $3,000 in charitable contributions. What is their taxable income?

Question 49

According to the tax table, what tax is due for a married person filing separately, who has a taxable income of $9,685?

Question 50

Name two ways a SUTA tax rate of 3% could be stored in a cell in Excel to be used in calculations.

Question 51

What tax document is supplied by an employer to an employee which shows the federal taxes, Social Security, and Medicare taxes withheld?