FiCEP Study Guide (Final) with Verified Solutions 2024

FiCEP Study Guide (Final) with Verified Solutions 2024 operating costs - Answer -A tax is defined as a contribution that supports the _____ of a government. progressive - Answer -A _____ tax requires a taxpayer to pay more tax as their income increases. (Federal and state income taxes are examples) regressive - Answer -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 - Answer -Sometimes taxes are called _____. fee - Answer -A _____ could include the cost of a driver's license or a hunting license. surcharge - Answer -A _____ could be a gasoline tax, tobacco tax, or liquor tax. tax obligations - Answer -Taking care of _____ is as important for a member's financial well-being as it is to pay their bills on time. correspondence - Answer -Any _____ from the IRS should be reviewed and dealt with as soon as possible. taxpayer advocate service. - Answer -If you have not been able to resolve a problem with the IRS, seek assistance from the _____. tax professional - Answer -Complex tax situations might require members to hire a _____. 70 - Answer -_____% of taxpayers may be eligible for free tax filing assistance. filing status - Answer -If members get a large refund, they might want to change their _____ if the money is needed in their monthly budget. costly - Answer -Caution members that using refund anticipation loans can be a _____ way to get instant access to their refund. pay down debt - Answer -The first choice for using a tax refund is to _____. self-employment quarterly taxes - Answer -Other tax authorities that members must pay attention to are state income tax, property tax, and _____. taxable income - Answer -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 - Answer -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 - Answer -_____ can make a difference in the taxes paid. filing status - Answer -Examples of _____ are single, married filing jointly, married filing separately, head of household, and qualified widow or widower with dependent children. 401(k) plan - Answer -Saving for retirement can also save taxes by making contributions to a _____. traditional IRA - Answer -If a person is in a 25% income bracket, they could save 25% of the money they deposit into a _____. insurance - Answer -Financial counseling clients can manage some of the risks in life by having the right types and amounts of _____. insurable interest - Answer -An _____ in a car you financed at the credit union could be held by both you and the credit union. risks - Answer -You can make a better choice about insurance coverage if you evaluate your _____. umbrella liability policy - Answer -An _____ can give you protection if someone sues you for an accident on your property