Take Tax Quiz and Win $25
Essex & Associates:: www.essexinc.biz February 7, 2011
A tax quiz:
Should you be doing your own return?
Answer these questions to assess whether it's time to hire a pro
There is a wealth of do-it-yourself tax software out there, and you're hankering to prepare your own tax return. But do you know enough about the tax laws affecting you to do it on your own? Take this 10-question quiz to find out.
You will find instances where you can certainly prepare your own tax return, but you will also learn where having a tax professional can make a big difference in your net taxes or penalties.
1. All my income comes from Social Security, dividends, and interest. According to the IRS, I don't need to file a tax return at all. True or false?
2. I received a scholarship that covered my tuition, room and board at college. None of that is taxable. True or false?
3. I've been smart. Aside from my wages, all my other income is from U.S. bonds and tax-free municipal bonds and bond funds. So none of my investment is taxable. True or false?
4. My baby lived with me all year and I paid well over half her support. But our divorce agreement says her father gets to claim her. And he did pay some of his child support. Do I have to give up her dependency exemption and all the related credits to him? Yes or no?
5. I don't have enough expenses to itemize. But I did pay property taxes on my house and bought a new car. So I can write those costs off along with my standard deduction. True or false?
6. I use my car for business. Since my employer gives $300 per month towards the costs, I don't have to bother taking auto deductions. True or false?
7. All my income comes from wages, and I don't own a house. I can do my own tax return. True or false?
8. I own my own home, a vacation home and a $75,000 motor-home. I am allowed to deduct the interest on all the mortgages and loans. True or false?
9. I refinanced my house when market values skyrocketed. Now the house I bought in 1980 for $120,000 has a mortgage of $350,000. I am allowed to deduct the full mortgage interest. And, no, I didn't add a pool or make any significant improvements, just occasional repairs. True or false?
10. I have family in India. They have a business that I own a piece of, with bank accounts and all the usual business stuff. They pay all the taxes there and I don't even get any of the money right now. It's all there, waiting for me. I am not considered to have a foreign bank account. True or false?
Thanks to my fellow professional Eva Rosenberg for this quiz.
If you answer all 10 questions correctly, I will send you a $25 gift card. Please send responses to my personal email address at email@example.com
Wishing you many happy returns,
Wayne T. Essex Ph.D.
Essex & Associates
Tax, Accounting, HR, Payroll
7501 Paragon Road
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