Chapter 3 - Chapter 3 Review Questions True/False 1. 2. 3....

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Chapter 3 Review Questions True/False 1. If you have any earned income, you are required to file a tax return. 2. A husband and wife would be the only couple combination that could file a joint return. 3. Your marital status will affect the amount of social security you must pay in a year. 4. Gifts received from family and friends are included in gross income. 5. The sale of your home will rarely result in a taxable capital gain. 6. You should itemize deductions when total itemized deductions exceed the standard deduction. 7. The alternative minimum tax is an issue only for high-income taxpayers. 8. If your AGI is less than $100,000 and you do not itemize deductions, the IRS will compute your taxes for you. 9. Opening a traditional IRA would allow you to defer taxes on the earning. 10. Persons who work for more than one employer in any year will owe more Social Security taxes than if all their income was earned from a single employer. Multiple Choice 1. The federal government gets the majority of its revenue from the tax. a. sales d. income b. property e. estate c. excise 2. A progressive tax system is one in which higher-income people pay than lower-income people. a.
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This note was uploaded on 08/28/2009 for the course BUS ACG2021 taught by Professor Yost during the Spring '08 term at W. Florida.

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Chapter 3 - Chapter 3 Review Questions True/False 1. 2. 3....

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