1. Which of the following are withholdings?

a. Federal income taxes, only.

b. Payroll taxes, only.

c. Sales taxes, only.

d. Both federal income and payroll taxes.

7. What filing status would be appropriate for someone who is unmarried and has no dependent children or relatives?

a. Single

b. Married filing jointly

c. Married filing seperately.

d. Head of household

8. Which of the following applies to capital losses?

a. Capital losses occur when you sell investments for a gain.

b. Capital losses can be used to offset similar gains for a tax purposes.

c. Capital losses cannot be used to reduce your tax base.

d. Capital losses only apply to taxpayers with dependent children.

9. Peta- kay is self-employed and has net earnings of $2,000. How much will Peta-Kay owe in self- employment tax?

a. $306.00

b. $282.59

c. $153.71

d. $0

10. An ? represents a dollar- for- dollar reduction in an assessed tax liability.

a. Tax credit.

b. exemption.

c. deduction.

d. negative effective tax rate.

11. Odell is single an has adjusted gross income of $900,000. Last year , he made $12,000 in student loan payments of which $10,940 went to the principal and $1,060 went to interest. With regard to his student loan , Oden will

a. Be able to claim a deduction for $12,000.

b be able to claim a deduction for $10,940.

c. be able to claim a deduction for $1,060

d. not be able to claim a deduction for his student loan interest.