PFS Tax Planning

Question 1

Which of the following is considered a tax-deferred retirement account?

Accepted Answer

Traditional IRA

Answer

Roth IRA

Answer

Health Savings Account

Answer

Brokerage Account

Question 2

What type of income is typically subject to self-employment tax?

Accepted Answer

Net self-employment income

Answer

Interest income

Answer

Dividend income

Answer

Wages

Question 3

Which deduction can be claimed without itemizing deductions on a federal tax return?

Accepted Answer

Standard deduction

Answer

Mortgage interest

Answer

Charitable contributions

Answer

Medical expenses

Question 4

Which tax strategy helps reduce taxable income by deferring it to a later year?

Accepted Answer

Tax deferral

Answer

Tax credit

Answer

Tax exclusion

Answer

Tax deduction

Question 5

Capital gains are typically taxed lower when assets are held for how long?

Accepted Answer

Over 1 year

Answer

Less than 3 months

Answer

More than 6 months

Answer

Exactly 1 year

Question 6

Which of the following is a refundable tax credit?

Accepted Answer

Earned Income Tax Credit

Answer

Mortgage interest deduction

Answer

Charitable donation deduction

Answer

Medical expense deduction