FICEP STUDY GUIDE (FINAL) EXAM
QUESTIONS AND ANSWERS (VERIFIED
AND UPDATED)
Operating costs - ANS A tax is defined as a contribution that supports the _____ of a
government.
progressive - ANS A _____ tax requires a taxpayer to pay more tax as their income increases.
(Federal and state income taxes are examples)
regressive - ANS A _____ tax charges the same percentage of the cost of a good or service,
no matter what the taxpayer earns. (Sales tax, gas taxes, and liquor taxes are examples)
fees or surcharges - ANS Sometimes taxes are called _____.
fee - ANS A _____ could include the cost of a driver's license or a hunting license.
surcharge - ANS A _____ could be a gasoline tax, tobacco tax, or liquor tax.
tax obligations - ANS Taking care of _____ is as important for a member's financial well-being
as it is to pay their bills on time.
correspondence - ANS Any _____ from the IRS should be reviewed and dealt with as soon as
possible.
@2026/2027 ALLRIGHTS RESERVED.
,taxpayer advocate service. - ANS If you have not been able to resolve a problem with the IRS,
seek assistance from the _____.
tax professional - ANS Complex tax situations might require members to hire a _____.
70 - ANS _____% of taxpayers may be eligible for free tax filing assistance.
filing status - ANS If members get a large refund, they might want to change their _____ if
the money is needed in their monthly budget.
costly - ANS Caution members that using refund anticipation loans can be a _____ way to get
instant access to their refund.
pay down debt - ANS The first choice for using a tax refund is to _____.
self-employment quarterly taxes - ANS Other tax authorities that members must pay
attention to are state income tax, property tax, and _____.
taxable income - ANS Examples of _____ are wages, salaries and tips, interest income,
alimony, business income, capital gains, pensions and annuities, other forms of income, and
distributions from a traditional IRA.
non-taxable income - ANS Examples of ____ are child support payments, life insurance
benefits paid to a beneficiary, gifts and inheritances from parents, social security benefits,
benefits from welfare, and qualified distributions from roth IRAs.
filing status - ANS _____ can make a difference in the taxes paid.
@2026/2027 ALLRIGHTS RESERVED.
, filing status - ANS Examples of _____ are single, married filing jointly, married filing
separately, head of household, and qualified widow or widower with dependent children.
401(k) plan - ANS Saving for retirement can also save taxes by making contributions to a
_____.
traditional IRA - ANS If a person is in a 25% income bracket, they could save 25% of the
money they deposit into a _____.
insurance - ANS Financial counseling clients can manage some of the risks in life by having
the right types and amounts of _____.
insurable interest - ANS An _____ in a car you financed at the credit union could be held by
both you and the credit union.
risks - ANS You can make a better choice about insurance coverage if you evaluate your
_____.
umbrella liability policy - ANS An _____ can give you protection if someone sues you for an
accident on your property.
deductibles and policy limits - ANS _____ can help manage the costs of insurance.
cobra - ANS _____ provides the right for an employee that is terminated or resigns to keep
their medical insurance for 18 months if they pay the cost (full amount of the premium).
part A - ANS Medicare _____ is free.
part B - ANS Medicare _____ is paid for by the insured.
@2026/2027 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS (VERIFIED
AND UPDATED)
Operating costs - ANS A tax is defined as a contribution that supports the _____ of a
government.
progressive - ANS A _____ tax requires a taxpayer to pay more tax as their income increases.
(Federal and state income taxes are examples)
regressive - ANS A _____ tax charges the same percentage of the cost of a good or service,
no matter what the taxpayer earns. (Sales tax, gas taxes, and liquor taxes are examples)
fees or surcharges - ANS Sometimes taxes are called _____.
fee - ANS A _____ could include the cost of a driver's license or a hunting license.
surcharge - ANS A _____ could be a gasoline tax, tobacco tax, or liquor tax.
tax obligations - ANS Taking care of _____ is as important for a member's financial well-being
as it is to pay their bills on time.
correspondence - ANS Any _____ from the IRS should be reviewed and dealt with as soon as
possible.
@2026/2027 ALLRIGHTS RESERVED.
,taxpayer advocate service. - ANS If you have not been able to resolve a problem with the IRS,
seek assistance from the _____.
tax professional - ANS Complex tax situations might require members to hire a _____.
70 - ANS _____% of taxpayers may be eligible for free tax filing assistance.
filing status - ANS If members get a large refund, they might want to change their _____ if
the money is needed in their monthly budget.
costly - ANS Caution members that using refund anticipation loans can be a _____ way to get
instant access to their refund.
pay down debt - ANS The first choice for using a tax refund is to _____.
self-employment quarterly taxes - ANS Other tax authorities that members must pay
attention to are state income tax, property tax, and _____.
taxable income - ANS Examples of _____ are wages, salaries and tips, interest income,
alimony, business income, capital gains, pensions and annuities, other forms of income, and
distributions from a traditional IRA.
non-taxable income - ANS Examples of ____ are child support payments, life insurance
benefits paid to a beneficiary, gifts and inheritances from parents, social security benefits,
benefits from welfare, and qualified distributions from roth IRAs.
filing status - ANS _____ can make a difference in the taxes paid.
@2026/2027 ALLRIGHTS RESERVED.
, filing status - ANS Examples of _____ are single, married filing jointly, married filing
separately, head of household, and qualified widow or widower with dependent children.
401(k) plan - ANS Saving for retirement can also save taxes by making contributions to a
_____.
traditional IRA - ANS If a person is in a 25% income bracket, they could save 25% of the
money they deposit into a _____.
insurance - ANS Financial counseling clients can manage some of the risks in life by having
the right types and amounts of _____.
insurable interest - ANS An _____ in a car you financed at the credit union could be held by
both you and the credit union.
risks - ANS You can make a better choice about insurance coverage if you evaluate your
_____.
umbrella liability policy - ANS An _____ can give you protection if someone sues you for an
accident on your property.
deductibles and policy limits - ANS _____ can help manage the costs of insurance.
cobra - ANS _____ provides the right for an employee that is terminated or resigns to keep
their medical insurance for 18 months if they pay the cost (full amount of the premium).
part A - ANS Medicare _____ is free.
part B - ANS Medicare _____ is paid for by the insured.
@2026/2027 ALLRIGHTS RESERVED.
