FICEP ACTUAL TEST SET 2026 PRECISE
SOLUTIONS DELIVERED
⫸ progressive. Ans: A _____ tax requires a taxpayer to pay more tax
as their income increases. (Federal and state income taxes are
examples)
⫸ regressive. Ans: A _____ tax charges the same percentage of the
cost of a good or service, no matter what the taxpayer earns. (Sales
tax, gas taxes, and liquor taxes are examples)
⫸ fees or surcharges. Ans: Sometimes taxes are called _____.
⫸ fee. Ans: A _____ could include the cost of a driver's license or a
hunting license.
⫸ surcharge. Ans: A _____ could be a gasoline tax, tobacco tax, or
liquor tax.
⫸ tax obligations. Ans: Taking care of _____ is as important for a
member's financial well-being as it is to pay their bills on time.
⫸ correspondence. Ans: Any _____ from the IRS should be reviewed
and dealt with as soon as possible.
,⫸ taxpayer advocate service.. Ans: If you have not been able to
resolve a problem with the IRS, seek assistance from the _____.
⫸ tax professional. Ans: Complex tax situations might require
members to hire a _____.
⫸ 70. Ans: _____% of taxpayers may be eligible for free tax filing
assistance.
⫸ filing status. Ans: If members get a large refund, they might want
to change their _____ if the money is needed in their monthly budget.
⫸ costly. Ans: Caution members that using refund anticipation loans
can be a _____ way to get instant access to their refund.
⫸ pay down debt. Ans: The first choice for using a tax refund is to
_____.
⫸ self-employment quarterly taxes. Ans: Other tax authorities that
members must pay attention to are state income tax, property tax, and
_____.
⫸ taxable income. Ans: Examples of _____ are wages, salaries and
tips, interest income, alimony, business income, capital gains,
pensions and annuities, other forms of income, and distributions from
a traditional IRA.
,⫸ non-taxable income. Ans: Examples of ____ are child support
payments, life insurance benefits paid to a beneficiary, gifts and
inheritances from parents, social security benefits, benefits from
welfare, and qualified distributions from roth IRAs.
⫸ filing status. Ans: _____ can make a difference in the taxes paid.
⫸ filing status. Ans: Examples of _____ are single, married filing
jointly, married filing separately, head of household, and qualified
widow or widower with dependent children.
⫸ 401(k) plan. Ans: Saving for retirement can also save taxes by
making contributions to a _____.
⫸ traditional IRA. Ans: If a person is in a 25% income bracket, they
could save 25% of the money they deposit into a _____.
⫸ insurance. Ans: Financial counseling clients can manage some of
the risks in life by having the right types and amounts of _____.
⫸ insurable interest. Ans: An _____ in a car you financed at the credit
union could be held by both you and the credit union.
⫸ risks. Ans: You can make a better choice about insurance coverage
if you evaluate your _____.
, ⫸ umbrella liability policy. Ans: An _____ can give you protection if
someone sues you for an accident on your property.
⫸ deductibles and policy limits. Ans: _____ can help manage the
costs of insurance.
⫸ cobra. Ans: _____ provides the right for an employee that is
terminated or resigns to keep their medical insurance for 18 months if
they pay the cost (full amount of the premium).
⫸ part A. Ans: Medicare _____ is free.
⫸ part B. Ans: Medicare _____ is paid for by the insured.
⫸ auto coverage. Ans: Liability, personal injury or medical coverage,
uninsured or under-insured coverage, comprehensive, collision, and
towing and roadside assistance, and car rental coverage are the seven
types of _____ available to consumers.
⫸ compounding. Ans: The rule of 72, or _____, shows how long it
will take for a person's investment to double. (72 / current interest rate
= number of year required to double original investment)
⫸ liquidity. Ans: _____ is the ability to convert an investment into
cash.
SOLUTIONS DELIVERED
⫸ progressive. Ans: A _____ tax requires a taxpayer to pay more tax
as their income increases. (Federal and state income taxes are
examples)
⫸ regressive. Ans: A _____ tax charges the same percentage of the
cost of a good or service, no matter what the taxpayer earns. (Sales
tax, gas taxes, and liquor taxes are examples)
⫸ fees or surcharges. Ans: Sometimes taxes are called _____.
⫸ fee. Ans: A _____ could include the cost of a driver's license or a
hunting license.
⫸ surcharge. Ans: A _____ could be a gasoline tax, tobacco tax, or
liquor tax.
⫸ tax obligations. Ans: Taking care of _____ is as important for a
member's financial well-being as it is to pay their bills on time.
⫸ correspondence. Ans: Any _____ from the IRS should be reviewed
and dealt with as soon as possible.
,⫸ taxpayer advocate service.. Ans: If you have not been able to
resolve a problem with the IRS, seek assistance from the _____.
⫸ tax professional. Ans: Complex tax situations might require
members to hire a _____.
⫸ 70. Ans: _____% of taxpayers may be eligible for free tax filing
assistance.
⫸ filing status. Ans: If members get a large refund, they might want
to change their _____ if the money is needed in their monthly budget.
⫸ costly. Ans: Caution members that using refund anticipation loans
can be a _____ way to get instant access to their refund.
⫸ pay down debt. Ans: The first choice for using a tax refund is to
_____.
⫸ self-employment quarterly taxes. Ans: Other tax authorities that
members must pay attention to are state income tax, property tax, and
_____.
⫸ taxable income. Ans: Examples of _____ are wages, salaries and
tips, interest income, alimony, business income, capital gains,
pensions and annuities, other forms of income, and distributions from
a traditional IRA.
,⫸ non-taxable income. Ans: Examples of ____ are child support
payments, life insurance benefits paid to a beneficiary, gifts and
inheritances from parents, social security benefits, benefits from
welfare, and qualified distributions from roth IRAs.
⫸ filing status. Ans: _____ can make a difference in the taxes paid.
⫸ filing status. Ans: Examples of _____ are single, married filing
jointly, married filing separately, head of household, and qualified
widow or widower with dependent children.
⫸ 401(k) plan. Ans: Saving for retirement can also save taxes by
making contributions to a _____.
⫸ traditional IRA. Ans: If a person is in a 25% income bracket, they
could save 25% of the money they deposit into a _____.
⫸ insurance. Ans: Financial counseling clients can manage some of
the risks in life by having the right types and amounts of _____.
⫸ insurable interest. Ans: An _____ in a car you financed at the credit
union could be held by both you and the credit union.
⫸ risks. Ans: You can make a better choice about insurance coverage
if you evaluate your _____.
, ⫸ umbrella liability policy. Ans: An _____ can give you protection if
someone sues you for an accident on your property.
⫸ deductibles and policy limits. Ans: _____ can help manage the
costs of insurance.
⫸ cobra. Ans: _____ provides the right for an employee that is
terminated or resigns to keep their medical insurance for 18 months if
they pay the cost (full amount of the premium).
⫸ part A. Ans: Medicare _____ is free.
⫸ part B. Ans: Medicare _____ is paid for by the insured.
⫸ auto coverage. Ans: Liability, personal injury or medical coverage,
uninsured or under-insured coverage, comprehensive, collision, and
towing and roadside assistance, and car rental coverage are the seven
types of _____ available to consumers.
⫸ compounding. Ans: The rule of 72, or _____, shows how long it
will take for a person's investment to double. (72 / current interest rate
= number of year required to double original investment)
⫸ liquidity. Ans: _____ is the ability to convert an investment into
cash.
