Tax Deductions for Individuals Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is true of the American Opportunity Credit?

Question 2 2. What is the penalty for using 529 plan earnings for expenses other than qualified higher education costs?

Question 3 3. Which of the following is true if an individual gives another person a gift that exceeds the annual gift tax exemption limit?

Question 4 4. Justin makes $1000 per paycheck. He has a 401(k) plan and his employer has a 3% matching program. Justin decides he'd like to be more aggressive with his contributions, so he decides he's going to contribute 5% per paycheck. How much does this mean his employer will contribute per paycheck?

Question 5 5. What type of pension plan guarantees that the employee will receive a particular amount of benefit once he or she retires, even if the employer's investments don't do well?

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Question 6 6. What is a key difference between pension plans and 401(k) plans?

Question 7 7. Mark and Meredith had a child in 2015, what is the income threshold for a married couple filing jointly to receive the child tax credit?

Question 8 8. Which of the following is NOT a tax benefit when you get married?

Question 9 9. A married couple decides to gift $32,000 to a friend. How much of this is subject to taxes?

Question 10 10. Which of the following best describes an audit of a person's taxes?

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Question 11 11. Which of the following is TRUE of the effect of bankruptcy on taxes?

Question 12 12. Which of the following is necessary for a widow to file jointly as a qualified widow following her spouse's death?

Question 13 13. Which is a way to minimize the tax liability of an estate?

Question 14 14. What is the maximum amount of an estate that a spouse can leave a surviving spouse without paying taxes?

Question 15 15. When does an individual tax exemption pass on to the surviving spouse?

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Question 16 16. How will an increase in your income affect your tax liability?

Question 17 17. The IRS allows a standard deduction if the taxpayer chooses not to itemize. A standard deduction is based on which of the following?

Question 18 18. Choose the MOST CORRECT statement as it relates to home office expenses.

Question 19 19. You currently run an FLP with your spouse; the business is valued at $6,000,000. The combined gift tax credit is $3 million and you can take up to 30 percent discount from the lack of marketability and control. You give the maximum allowed to your son. How much of the remainder is taxable?

Question 20 20. Of the following business types, which could be a Family Limited Partnership (FLP)?

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Question 21 21. What discount is applicable to a gift of an FLP interest?

Question 22 22. According to the IRS, you can deduct qualified medical expenses that exceed _____ percent of your adjusted gross income.

Question 23 23. Medical expenses paid for which of the following people can NOT be deducted from your taxes?

Question 24 24. Which of the following medical purchases is NOT a qualified medical expense that can be deducted?

Question 25 25. Which of the following is true of 529 plans?

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Question 26 26. Alex wants to retire but is not vested. Why is this a bad idea?

Question 27 27. Capital gains tax will not be applied to a sale of a home up to _____ during a divorce.

Question 28 28. Which of the following is TRUE of taxes for a divorced couple?

Question 29 29. The total amount that someone is worth after they die is called:

Question 30 30. Which expenses can be paid with pre-tax dollars from a flexible spending account?

Tax Deductions for Individuals Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 307: Federal Income Taxes  /  Business Courses
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