Preparing your income tax returns can be a confusing, meticulous, and difficult time for you. To compound this stressful situation, you often have to wait in long lines when you visit the big three H&R Block, Jackson Hewitt Tax Services, and/or Liberty Tax Services.
At Jenkins Financial you will find a mobile income tax preparation service with professional tax preparers who are registered with the Internal Revenue Service and must complete comprehensive tax courses before servicing our customers. Our tax professionals will understand your tax situation, address your concerns, and answer all of your questions in the comfort of your own home! We will come to your home or office to complete your tax return, with courteous and friendly service.
We offer federal/state electronic filing, and can provide helpful tax planning tips to help you get the most money back in the shortest amount of time!
Should You Do Your Own Taxes
Do you need help preparing your tax return? Should you try to do it yourself? The following quiz can help give you an idea of how well you understand tax concepts and current tax laws. There are 25 questions, and each is worth four points.
1) Which would you rather have?
A) A credit of $100.00
B) A deductible expense of $100.00
C) A capital gain of $100.00
D) A deductible loss of $100.00
2) The following are always included in your income except:
A) A Bonus of $100.00
B) Alimony received of $100.00
C) Unemployment Compensation of $100.00
D) Social Security payments of $100.00
3) Which of the following is normally not deductible
A) The fair market value of old clothes given to charity
B) Personal credit card interest
C) Job-hunting expenses
D) Tax planning advice
4) Which of the following is normally not decutible?
A) Home equity interest on principal borrowed in excess of $100.00
B) Long distance charges for calls to your investment broker.
C) A subscription to Value Line for investment purposes.
D) Business compensation paid to your children under age 18.
5) Which of the following is not deductible as a medical expense?
A) Life insurance premiums
B) Expense of transportation to physician's appointments
C) Swim club dues when a physician has prescribed swimming to alleviate a medical condition.
D) Whirlpool treatments prescribed for your arthritis
6) If you are self employed
A) You can deduct wages paid to your children over age 14, even if they perform no meaningful work.
B) You can escape Social Security taxes on payments to your children under age 18.
C) You can depreciate the cost of your home office over a 28 year period.
D) You can deduct investment expenses whether or not you itemize deductions.
7) An IRS audit:
A) Can be done on any tax year at any time.
B) May require you to substantiate your deductions.
C) Always takes place at the IRS office.
D) Will never happen to you.
8) The marriage penalty:
A) Is a function of the progressive nature of our tax system.
B) Includes the potential loss of IRA deductions.
C) Both of the above.
9) If you change jobs during the year and have reached the maximum income amount subject to Social Security tax on your first job, you will still have to pay Social Security taxes at your new job. You can claim the excess Social Security tax paid as a credit on your 1040 return.
10) Your medical deduction:
A) Includes home improvements made to accomodate a family member with a physical handicap.
B) Includes travel deductions at 12 cents a mile.
C) Is reduced by 7.5 percent of your adjusted gross income in excess of $100,000.
D) Includes payments for cosmetic surgery.
11) Personal property taxes are deductible if:
A) They are based on either the value or weight of the property.
B) The tax is charged on a yearly basis.
C) The tax is not called a registration fee.
D) The tax paid within 30 days of the end of the year.
12) The IRS will now allow a deduction of interest up to $2,500 a year for repaying
A) Education loans.
B) Credit card debt.
C) Loans to pay taxes.
D) Auto Loans.
13) The amount you pay in "points":
A) Must always be deducted proportionally over the life of the loan.
B) Is never deductible on the refinancing of a home.
C) Is deductible in full in the year of payment if the loan is to acquire your main home.
D) Can never be deducted by a buyer if paind by a seller.
14) If you sell your principal house after living in it for only two years, and you net $150,000 in profit:
A) You oew 15% capital gains tax.
B) You owe 28% capital gains tax.
C) You owe tax at your top marginal rate.
D) You owe nothing.
15) If you rent out your primary home for up to two weeks each year:
A) You owe in come tax on he rental income, minus expenses.
B) You can deduct 1/26th of the cost of operating your home.
C) You must depreciate the house.
D) You do not report income or expenses from the rental.
16) The maximum amount that you can receive for the HOPE Scholarship Credit is:
17) Charitable contributions:
A) Include the original retail cost of clothes given to Goodwill.
B) Imclude medical transportation at 31.5 cents per mile.
C) Include out-of-pocket volunteer expenses for a Boy Scout troop.
D) Require written confirmation from the charity for donations in excess of $200.00
18) A casualty loss:
A) is normally deducted in the year of the loss.
B) must be reduced by all insurance payments unless you paid the insurance premiums.
C) must be reduced by 10% of your adjusted gross income for each loss event.
D) must be reduced, in the aggregate, by $1000.00
19) Which of the following can be taken as an itemized deduction on Schedule A?
A) The broker's commission on a stock sale.
B) IRA or Keogh fees deducted from your account.
C) Job-related expenses.
D) Non-business bad debts.
20) If you sell stock that you have held for at least one year, what is the maximum capital gains rate?
21) A Roth IRA allows you to withdraw funds without paying a tax penalty for which of these reasons:
B) Non-deductible medical premiums.
C) Insurance premiums not paid by your employer.
D) All of the above.
22) The advantage of a Roth IRA over a traditional IRA is that with a Roth IRA:
A) contributions grow tax deferred.
B) you can roll a Roth IRA into a traditional IRA.
C) contributions are not tax deductible.
D) qualified distributions from a Roth IRA are tax free.
23) You may be eligible to make a full of partial Roth IRA contribution if your adjusted gross income on a joint return does not exceed:
24) At age 50 you can never withdraw money from your IRA account without paying an extra 10 percent penalty on what you take out.
25) If you receive an IRS notice that you owe money, you should:
A) write a check immediately.
B) check to be sure the notice is correct before sending in the money.
C) return to sender, marked 'deceased.'
Please send an email to firstname.lastname@example.org Please include TAX QUIZ in the subject line, and please include the number for each question with the letter that corresponds to your answer. Ex. 1)C, 2)A, 3)D, etc. We will correct your quiz within 48 hours or your taxes are done free of charge!