Personal Finance Final Exam

Front

What does "Adjusted Gross Income" refer to in tax terminology?

Back

The income calculated after certain adjustments and deductions

Front

What is the purpose of the "Child and Dependent Care Credit"?

Back

If you paid for childcare or care of a dependent

Front

Which of the following best describes "Earned Income"? Options: Income from investments, Taxable income you make from working, All income including gifts and inheritances, Only the income from self-employment

Back

Taxable income you make from working

Front

What does "Filing Status" determine in the context of tax returns?

Back

The federal tax return has five statuses

Front

What is meant by "Gross Income"?

Back

All the income you’ve received that is not exempt from tax

Front

What is the definition of "gross income"?

Back

All the money that you receive in a year, whether you earn it or otherwise, from every source combined.

Front

Which of the following best describes a "dependent" in the context of filing taxes?

Back

A child, relative, or individual whom a taxpayer can claim on their federal income tax return to receive a dependency exemption.

Front

What does the term "credit" refer to in financial terms?

Back

The amount of money you can deduct directly from your taxes owed.

Front

What does it mean if something "qualifies" in terms of tax terminology?

Back

It meets a required set of criteria to claim a certain status, deduction, exemption, credit, etc.

Front

What is the purpose of the "Special Terms Expiration Alert" section in a credit card statement?

Back

To alert the cardholder about upcoming changes in interest rates