CPF Chapter 3 Exam Questions and Answers All Correct
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Course
CPF
Institution
CPF
CPF Chapter 3 Exam Questions and Answers All Correct
The tax based on the total tax due divided by taxable income is called the - Answer- Average tax rate
Which of the following is NOT a tax credit? - Answer- Domestic tax credit
Recent tax credits include all of the following except the - A...
CPF Chapter 3 Exam Questions
and Answers All Correct
The tax based on the total tax due divided by taxable income is called the - Answer-
Average tax rate
Which of the following is NOT a tax credit? - Answer- Domestic tax credit
Recent tax credits include all of the following except the - Answer- AMT tax credit.
At the end of the year, Xavier received a form from his employer that reported annual
earnings and the amounts deducted for taxes. That form is called a - Answer- W-2
At the end of the year, Yvonne received a form from her bank that reported income from
her savings. That form is called a - Answer- 1099
At the end of the year, Walter received a form that showed his payments from
independent contracting. That form is called a - Answer- 1099
Penny knows that she needs to file her federal income taxes, but she is unable to do so
by April 15. What form does she need to complete to obtain an automatic six-month
extension? - Answer- 4868
Which of the following is NOT a valid form for filing federal income taxes? - Answer-
1040Z
All of the following can reduce your taxes today except investing in - Answer- A Roth
IRA.
Evan is not concerned about immediate tax benefits but instead wants his investment to
grow in value on a tax-free basis. Which of these would be the best for him to invest in
today? - Answer- A Roth IRA.
Lauren owns her business and is thinking about saving for retirement. She wants to
invest up to 25% of her annual income. Which plan should she use? - Answer- Keogh
plan
An advantage of investing in a 401(k) plan is the - Answer- Possibility of receiving an
employer match on your contributions.
Janet is completing her federal income taxes for the year and has identified the
amounts listed here. How much can she rightfully deduct?
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