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Taxes and Tax Preparation

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Mary Runte

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โˆ™ 2021-11-07 19:34:30
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Cards in this guide (31)
What is a dependent

A qualifying child or qualifying relative.

What are exemptions

they are amount of money that taxpayers claim for themselves, spouses, and any eligible dependents that will reduce their taxable income.

this is for a+ robert was here:p

What is the definition of a shared tax

A tax the state creates and collects.

Which of these healthcare plans allows a person to receive services from any hospital in the country

fee-for-service

Which of these is the best description of an assessment
What type of tax is an income tax

The 16th amendment is a moot point. All it did was to confirm Congress' taxing power concerning income tax as an indirect tax!

Income Tax is an INDIRECT tax. It is NOT a direct tax as others here have suggested. 2 US Supreme Court Cases in 1916 settled this very question. They are:

BRUSHABER v. UNION PACIFIC R. CO., 240 U.S. 1 (1916)

AND

STANTON v. BALTIC MINING CO, 240 U.S. 103 (1916)

The Court said specifically in the Stanton case the following:

" it manifestly disregards the fact that by the previous ruling it was settled that the provisions of the 16th Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirecttaxation to which it inherently belonged, "

And as a side note, most tax professionals do NOT read the law to determine who is liable for the tax. Most tax professionals read IRS publications and just ASSUME anyone who makes money now owes an Income Tax.

IRS Publications are sort of like "New Letters" put out by the IRS to the tax industry, including mostly ALL CPA's and Tax "Professionals". The IRS has a manual available on their website which any one can go read. Here's what THEIR OWN manual says about their own publications:

4.10.7.2.8 (01-01-2006)

IRS Publications

"IRS Publications explain the law in plain language for taxpayers and their advisors. They typically highlight changes in the law, provide examples illustrating Service positions, and include worksheets. Publications are nonbinding on the Service and do not necessarily cover all positions for a given issue. While a good source of general information, publications should not be cited to sustain a position."

The IRS has plainly stated in their OWN manual that Publications are NOT to be cited to sustain positions about the LAW even though that is what all tax professionals do anyway. This is because IRS publications and pamphlets are NOT the law. The IRS has already vindicated themselves from people who WRONGLY use publications like law.

So hopefully this has gotten you on the proper path to actually understanding what the "Income Tax" actually is and especially what it ISN'T!

Which type of insurance is sometimes used to guarantee the payment of a mortgage in case the insured dies

decreasing term insurance...

How much money is taken in federal taxes for every thousand you make

Your employer would be able to give you the percentage amount that would be withheld from your pay for the total of all taxes on the 1000 amount.

Social security, medicare, federal income taxes, state income taxes, local income taxes, etc.

Which of these is an element of limited payment life insurance

this life insurance policy has premium payment for a set number or years....

What is the best definition of taxable income

For Federal income tax purposes, taxable income is the portion of a taxpayer's gross income on which his regular income tax liability (before payments and credits) for the year is based. Income from any given source is taxable, unless the Code specifically says it isn't taxable.

Calculation:

Taxable income starts with gross income, which according to the US Internal Revenue Code, is all income from whatever source derived. Gross income is then reduced by certain adjustments allowed by the IRS (e.g. for student loan interest, alimony paid, and 10 or so other specific items) to get adjusted gross income. Adjusted gross income is then reduced by exemptions (both personal and for any dependents) and itemized deductions (or the standard deduction) to arrive at taxable income.

Which of these is the best definition of gross income

the amount of money you actually earn during a given pay period...

What is the best definition of net income

the amount of paycheck after withholdings

Which of these forms lists how much was paid in state and local taxes

W-2

Which of these can be claimed for individuals or any eligible dependents

Exemptions!!

Which of these is true of an annuity

there are two types of annuities including fixed and variable

Which of these statements describes the elements of a traditional fee-for-service health insurance plan

It is usually the most expensive healthcare choice but offers the most flexibility.

Which of these is an element of whole life insurance

under this type of policy, the insured pays premiums for his or her entire life :)

thankkk emery.s (;

Which is not an example of cash value insurance

Term Insurance

Which of these is the best definition of an allowance as it relates to taxes

A specific amount of money set aside for a certain reason. Like saving up for college.

A special circumstance that permits reductions in your federal tax bill

The same as an employee's salary

The amount of your income for which no taxes need to be paid.

What is an important reason for knowing the approximate difference between your gross pay and your net pay

Knowing the difference will allow you to develop a realistic budget based upon your take-home pay.

Which of these forms lists the amount of medicare taxes that were paid during the year

W-2

Which type of insurance will pay for the loss of the insured's leg or arm

Accidental Death or Dismemberment

did you know people eat toilet paper in prison so they wont starve..........

Which of these statements describes the elements of long term care insurance

They cover the cost of services for a person living in a nursing home or in an assisted living facility.

What is a form 1040EZ

a form completed by the taxpayer and sent to the federal government.

The Social Security tax is 6 2 percent and the Medicare tax is 1 45 percent of your annual income How much would you pay per year to FICA if your annual earnings were 47000

47000 times 7.65 % the amount of FICA would be 3595.50.

Which type of annuity credits an individual with a return that is based on changes in an index

indexed! :)

Which type of tax is collected by a mediating agent and then forwarded to the government

indirect tax

What is a tax table

a form used to calculate the amount of taxes a person must pay based upon income.

Heather earns an annual salary of 46500 with federal income tax of 3200 state income tax of 930 and FICA taxes at 7.65 what will her take-home pay be after paying taxes

7.65% of 46500 is 3557.25. This means:

46500 - 3200 - 930 - 3557.25 = 38812.75

Which of these is a description of allowances

special circumstances that reduce a persons federal tax bill

Variable Annuity Calculator

Variable Annuity Calculator

Contributing to a Variable Annuity creates long term tax-deferred growth. Use this calculator to see how a Variable Annuity might fit into your retirement plan.

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What is a dependent

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Which of these healthcare plans allows a person to receive services from any hospital in the country

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Insurance

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Which of these healthcare plans allows a person to receive services from any hospital in the country

Which type of insurance is sometimes used to guarantee the payment of a mortgage in case the insured dies

How much money is taken in federal taxes for every thousand you make

The face value of which type of insurance is reduced over the life of the policy

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Insurance

23 cards

What does HMO stand for

Managers for which type of employees use the amount of work completed to calculate the wages of an employee

Which of these healthcare plans allows a person to receive services from any hospital in the country

Which type of insurance is sometimes used to guarantee the payment of a mortgage in case the insured dies

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A defined contribution plan is part of which employee benefit

Which term represents budget items that change in value from month to month

Types of questionnaire

What is another term that means withholdings

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How soon after you are denied credit must you receive notice both verbally and by letter

What is disposable income

Are Morgan Stanley money market checking accounts FDIC insured

What is the simplest way to create capital

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