Income Tax Knowledge Test

A progressive income tax scheme is what?

A tax structure that taxes higher incomes more heavily and poorer incomes less heavily

A progressive tax scheme that improves over time

A tax structure that permits investment-related deductions

Correct! Wrong!

The definition of Adjusted Gross Income

Taxable income prior to deductions

Your income after taxes

Taxable income following deductions

Correct! Wrong!

Which of the following is not a method for reducing the amount of capital gains taxes you must pay?

Using short-term investments rather than long-term ones

Using long-term investments rather than short-term ones

Subtracting investment losses from capital gains

Correct! Wrong!

Which of the following is not a qualifying itemized deduction for tax purposes?

Loss from theft

Losses from gambling

Utilities like gas and water are expensive.

Correct! Wrong!

Which of the following could make you more likely to be audited?

An error in mathematics on your tax return

Delivering receipts and explanations before the IRS requests them

A tax return that is neatly and properly filled out

Correct! Wrong!

Which of the following is not an appropriate justification for filing a tax amendment?

You entered the incorrect filing status.

One of your dependents was overlooked.

You erred mathematically.

Correct! Wrong!

The profit is subject to the following conditions if you sell your old Chevrolet for more than you paid:

Capital gain tax

Buyer's tax

Without taxes

Correct! Wrong!

A progressive income tax scheme is what?

The definition of Adjusted Gross Income

Which of the following is not a method for reducing the amount of capital gains taxes you must pay?

Which of the following is not a qualifying itemized deduction for tax purposes?

Which of the following could make you more likely to be audited?

Which of the following is not an appropriate justification for filing a tax amendment?

The profit is subject to the following conditions if you sell your old Chevrolet for more than you paid:

Tax Consulting Test 1

Registered Tax Return Preparer Test

Tax Management Test

A progressive income tax scheme is what?

The definition of Adjusted Gross Income

Which of the following is not a method for reducing the amount of capital gains taxes you must pay?

Which of the following is not a qualifying itemized deduction for tax purposes?

Which of the following could make you more likely to be audited?

Which of the following is not an appropriate justification for filing a tax amendment?

The profit is subject to the following conditions if you sell your old Chevrolet for more than you paid:

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