Test Your Tax IQ -- Take This Quiz
Two weeks until Tax Day. At this point, you probably know more than you want to about taxes. Or do you?
We've put together a tax quiz with questions supplied by the
Institute of Certified Financial Planners
. Are you up to the challenge? You might be surprised at how much you know -- or don't know -- about one of the most complicated tax systems in the world.
See how your answers stack up against those of other
TSC
readers. Next Tuesday, we'll publish the correct answers. That should leave plenty of time for you to go back and correct your return, if necessary.
Does your tax knowledge put you in audit territory? Or are you smart enough to beat Uncle Sam at his own game? Click the answer below and find out.
What's the last day you can make a deductible contribution to your individual retirement account and have it apply to your 1998 tax year?
A. Dec. 31, 1998
B. Jan. 1, 1999
C. April 15, 1999
D. At the end of automatic extension
Social Security benefits are not taxable.
True
False
Medical expenses must exceed what portion of your adjusted gross income to be deductible?
A. 2%
B. 7.5%
C. 10%
D. 15%
Earnings from tax-free municipal bonds are never subject to federal income tax.
True
False
Federal unemployment income is not subject to federal tax.
True
False
It is better to take a $100 tax credit than a $100 tax deduction.
True
False
If you are 65 years old, up to how much of your long-term care insurance premiums can be treated as medical expense?
A. $210
B. $380
C. $770
D. $2,050
You cannot take the new Hope Scholarship tax credit if your modified adjusted gross income exceeds $100,000.
True
False
The interest paid on which of the following types of personal loans is usually tax deductible?
A. Home Equity
B. Credit card
C. Car
D. Installment
Professional tax preparation and tax planning fees are not tax deductible.
True
False
The minimum age you must begin taxable withdrawals from an employer-sponsored retirement plan such as a 401(k) is:
A. 59 1/2
B. 62
C. 65
D. 70 1/2 or when you retire, whichever is later
The alternative minimum tax does not affect middle-income taxpayers.
True
False
