1) The knowledge of tax laws can help you A) conserve

Question : 1) The knowledge of tax laws can help you A) conserve : 1981141

1) The knowledge of tax laws can help you

A) conserve your income.

B) enhance your investments.

C) protect the transfer of your wealth at your death.

D) All of the above.

2) A branch of the U.S. Treasury Department, called the ________, administers the federal tax system.

A) U.S. Department of Tax

B) Internal Revenue Service

C) U.S. Tax Authority

D) U.S. Department of Collection

3) FICA taxes include two components, which consist of

A) accident and disability insurance.

B) unemployment compensation and disability insurance.

C) retirement and Medicare contributions.

D) old age and unemployment compensation.

4) Which of the following taxes is only paid on the first $102,000 of your salary?

A) Federal Income Tax

B) Social Security Tax

C) Medicare Tax

D) All of the above.

5) Self-employed individuals pay FICA taxes at a rate of

A) 1.45 percent.

B) 7.65 percent.

C) 15.3 percent.

D) 20.9 percent.

6) If you have a salary of $30,000, an IRA deduction of $2,000, a standard deduction of $4,400, and a FICA rate of 7.65 percent, how much did you pay in FICA this year?

A) $1,805

B) $1,958

C) $2,142

D) $2,295

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

A) These taxes fund both Social Security and Medicare

B) Employers are required to match employee FICA contributions

C) All FICA taxes apply to your total income

D) There is a limit on how much of your income will be taxed for Social Security

8) The Tax Relief Act of 2001

A) raised the tax rates for the highest income portion of the population.

B) limits further the ability to contribute to retirement plans tax-free.

C) provided educational incentives to most taxpayers.

D) reduced the childcare credit available to most young families.

9) Determining taxes requires you to address all of the following topics except

A) gross income.

B) daily living expenses.

C) deductions.

D) exemptions.

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Finance 11 Months Ago 29 Views
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