Quiz Understanding the Financial Planning Certification Exam Part 4 Lesson 3
Question 1: What is the maximum amount of the Retirement Savings Contribution Credit for married filing jointly in 2023?
- A) $500
- B) $1,000
- C) $1,500
- D) $2,000
Question 2: What age limit applies to children eligible for the Child and Dependent Care Expenses Credit?
- A) Up to age 16
- B) Up to age 18
- C) Up to age 21
- D) Up to age 13
Question 3: How much is the Child Tax Credit for each qualifying child under the age of 17 in 2023?
- A) $1,500
- B) $1,000
- C) $2,000
- D) $2,500
Question 4: Which of the following expenses is NOT included in the Adoption Credits?
- A) Adoption fees
- B) Attorney fees
- C) Surrogate costs
- D) Court costs
Question 5: What age threshold applies to individuals eligible for the Elderly and Permanently Disabled Credit?
- A) 60 years
- B) 62 years
- C) 65 years
- D) 70 years
Question 6: Which taxpayer can claim the Foreign Tax Credit?
- A) A US citizen working abroad
- B) A non-US citizen working in the US
- C) A US taxpayer paying taxes to a foreign government
- D) A foreign national visiting the US
Question 7: What is the penalty percentage for failure to pay taxes on time?
- A) 0.5% per month
- B) 1% per month
- C) 2% per month
- D) 5% per month
Question 8: Who is qualified to represent a taxpayer before the IRS?
- A) Financial planner
- B) Attorney
- C) Taxpayer’s friend
- D) Neighbor
Question 9: What does tax avoidance mean?
- A) Legally minimizing tax liability
- B) Illegally hiding income from taxation
- C) Avoiding paying taxes altogether
- D) Failing to file tax returns
Question 10: What is the penalty for negligence-related tax issues?
- A) 10% of underpaid amount
- B) 20% of underpaid amount
- C) 30% of underpaid amount
- D) 40% of underpaid amount
Question 11: What is the maximum income phase-out for the Retirement Savings Contribution Credit for married filing jointly in 2023?
- A) $60,000
- B) $70,000
- C) $80,000
- D) $90,000
Question 12: How much is the credit percentage for the Child and Dependent Care Expenses Credit?
- A) 10%
- B) 15%
- C) 20%
- D) 25%
Question 13: What is the phase-out limit for the Child Tax Credit for married filing jointly in 2023?
- A) $300,000
- B) $400,000
- C) $500,000
- D) $600,000
Question 14: What is the penalty percentage for failure to file taxes on time?
- A) 2.5% per month
- B) 3% per month
- C) 4% per month
- D) 5% per month
Question 15: Which expenses are included in the Adoption Credits?
- A) Adoption fees
- B) Surrogate costs
- C) Court costs
- D) Legal fees
Question 16: What is the age limit for individuals eligible for the Elderly and Permanently Disabled Credit?
- A) 60
- B) 62
- C) 65
- D) 70
Question 17: What is the maximum amount of the Child Tax Credit for each qualifying child under the age of 17 in 2023?
- A) $1,500
- B) $1,000
- C) $2,000
- D) $2,500
Question 18: What is the penalty percentage for fraud-related tax issues?
- A) 50% of underpaid amount
- B) 60% of underpaid amount
- C) 70% of underpaid amount
- D) 75% of underpaid amount
Question 19: What is the maximum income phase-out for the Retirement Savings Contribution Credit for single filers in 2023?
- A) $50,000
- B) $60,000
- C) $70,000
- D) $80,000
Question 20: How many times can a taxpayer amend their estimated tax payments?
- A) Once
- B) Twice
- C) Thrice
- D) As many times as needed
Question 17: What type of income does NOT incur self-employment tax?
a) Real estate income
b) 1099 earnings above $600
c) Wages from an S Corp
d) Board of directors fees
Question 18: What is the maximum income limit for Social Security tax under FICA?
a) $100,000
b) $150,000
c) $160,200
d) No limit
Question 19: Which tax is based on net earnings from self-employment?
a) Income tax
b) Sales tax
c) Property tax
d) Self-employment tax
Question 20: What is the primary purpose of FICA tax?
a) Funding education programs
b) Funding Social Security and Medicare programs
c) Funding military programs
d) Funding environmental protection programs
Answer Key:
Answer Key:
1 D) $2,000
2 D) Up to age 13
3 C) $2,000
4 C) Surrogate costs
5 C) 65 years
6 C) A US taxpayer paying taxes to a foreign government
7 A) 0.5% per month
8 B) Attorney
9 A) Legally minimizing tax liability
10 B) 20% of underpaid amount
11 B) $70,000
12 C) 20%
13 B) $400,000
14 D) 5% per month
15 A) Adoption fees
16 C) 65
17 C) $2,000
18 D) 75% of underpaid amount
19 C) $70,000
20 D) As many times as needed
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