11)Which of the following does NOT need to be reported as income for federal income tax purposes?

Tips received

Bonus received from employer

Monetary graduation gifts received

Unemployment insurance payments

12)Your employer offers dental insurance for $620 per year pretax through your employee benefit plan. However, your employer does not contribute toward the cost, and your marginal tax rate will be 24 %. Buying the dental insurance through payroll deduction

will cost you 24% of $620, so the net cost is $769.

will cost you 24 % of $620, so you will save $471.

will save you $149 in taxes, so the net cost is $471.

does not offer any financial advantage to you.

13)Steven contributes $1050 per month into his medical flexible spending account. During the year, he uses the funds for dental work and gets reimbursed the full amount in the account by the end of year. How much did Steven save in annual taxes if he is in the 12% tax bracket?

$6300

$1512

$12600

$1050

14)Richard, age 65, withdraws $12300 for retirement from his Roth IRA this year. How much will he owe in taxes if his current marginal tax rate is 12% and his average tax rate is 9%?

$1476

$0

$1107

$369

15)The U.S. income tax is considered

illegal.

progressive.

regressive.

transgressive.