Minh

4970 Words20 Pages
Chapter 03 Taxes in Your Financial Plan True / False Questions 1. (p. 76) Tax Freedom Day represents the day that the average person works until to pay their taxes each year. TRUE Bloom's: Knowledge Difficulty: Medium Learning Objective: 1 Topic: Tax strategy 2. (p. 78) An example of an excise tax is Social Security. FALSE Social Security is a tax on earnings. Bloom's: Comprehension Difficulty: Easy Learning Objective: 1 Topic: Tax strategy 3. (p. 78) Individuals are allowed to give money or items of any value to a person without being subject to taxes. FALSE The maximum amount that can be gifted without tax implications in 2009 is $13,000. NOTE: This question can be…show more content…
FALSE If taxes withheld are greater than the amount due, then you will receive a refund. Bloom's: Comprehension Difficulty: Medium Learning Objective: 2 Topic: Income taxes 17. (p. 85) Individuals who have high income reported on Form 1099 may be required to pay estimated tax payments. TRUE Bloom's: Knowledge Difficulty: Medium Learning Objective: 2 Topic: Income taxes 18. (p. 85) Federal income tax returns must be filed by April 1 of each year. FALSE Forms must be filed by April 15. Bloom's: Knowledge Difficulty: Easy Learning Objective: 2 Topic: Income taxes 19. (p. 85) Form 4868 allows a taxpayer to obtain a six-month extension on filing and paying federal taxes without penalty. FALSE The extension does not delay the payment liability. Bloom's: Comprehension Difficulty: Medium Learning Objective: 2 Topic: Income taxes 20. (p. 86) All citizens of the United States are required to file a federal income tax return if their income falls below a certain level. FALSE Citizens whose income is above a certain level are required to file. Bloom's: Knowledge Difficulty: Easy Learning Objective: 3 Topic: Filing income taxes 21. (p. 89) Most states do not require state income taxes. FALSE Only seven states do not have a state

More about Minh

Open Document