Page |1
FiCEP Study Guide (Final) Questions and
Correct Answers/ Latest Update / Already
Graded
A tax is defined as a contribution that supports the _____ of a
government.
Ans: operating costs
A _____ tax requires a taxpayer to pay more tax as their income
increases. (Federal and state income taxes are examples)
Ans: progressive
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)
Ans: regressive
Sometimes taxes are called _____.
Ans: fees or surcharges
A _____ could include the cost of a driver's license or a hunting license.
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Ans: fee
A _____ could be a gasoline tax, tobacco tax, or liquor tax.
Ans: surcharge
Taking care of _____ is as important for a member's financial well-
being as it is to pay their bills on time.
Ans: tax obligations
Any _____ from the IRS should be reviewed and dealt with as soon as
possible.
Ans: correspondence
If you have not been able to resolve a problem with the IRS, seek
assistance from the _____.
Ans: taxpayer advocate service.
Complex tax situations might require members to hire a _____.
Ans: tax professional
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_____% of taxpayers may be eligible for free tax filing assistance.
Ans: 70
If members get a large refund, they might want to change their _____
if the money is needed in their monthly budget.
Ans: filing status
Caution members that using refund anticipation loans can be a _____
way to get instant access to their refund.
Ans: costly
The first choice for using a tax refund is to _____.
Ans: pay down debt
Other tax authorities that members must pay attention to are state
income tax, property tax, and _____.
Ans: self-employment quarterly taxes
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.
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Ans: taxable income
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.
Ans: non-taxable income
_____ can make a difference in the taxes paid.
Ans: filing status
Examples of _____ are single, married filing jointly, married filing
separately, head of household, and qualified widow or widower with
dependent children.
Ans: filing status
Saving for retirement can also save taxes by making contributions to a
_____.
Ans: 401(k) plan
All rights reserved © 2025/ 2026 |
FiCEP Study Guide (Final) Questions and
Correct Answers/ Latest Update / Already
Graded
A tax is defined as a contribution that supports the _____ of a
government.
Ans: operating costs
A _____ tax requires a taxpayer to pay more tax as their income
increases. (Federal and state income taxes are examples)
Ans: progressive
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)
Ans: regressive
Sometimes taxes are called _____.
Ans: fees or surcharges
A _____ could include the cost of a driver's license or a hunting license.
All rights reserved © 2025/ 2026 |
, Page |2
Ans: fee
A _____ could be a gasoline tax, tobacco tax, or liquor tax.
Ans: surcharge
Taking care of _____ is as important for a member's financial well-
being as it is to pay their bills on time.
Ans: tax obligations
Any _____ from the IRS should be reviewed and dealt with as soon as
possible.
Ans: correspondence
If you have not been able to resolve a problem with the IRS, seek
assistance from the _____.
Ans: taxpayer advocate service.
Complex tax situations might require members to hire a _____.
Ans: tax professional
All rights reserved © 2025/ 2026 |
, Page |3
_____% of taxpayers may be eligible for free tax filing assistance.
Ans: 70
If members get a large refund, they might want to change their _____
if the money is needed in their monthly budget.
Ans: filing status
Caution members that using refund anticipation loans can be a _____
way to get instant access to their refund.
Ans: costly
The first choice for using a tax refund is to _____.
Ans: pay down debt
Other tax authorities that members must pay attention to are state
income tax, property tax, and _____.
Ans: self-employment quarterly taxes
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.
All rights reserved © 2025/ 2026 |
, Page |4
Ans: taxable income
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.
Ans: non-taxable income
_____ can make a difference in the taxes paid.
Ans: filing status
Examples of _____ are single, married filing jointly, married filing
separately, head of household, and qualified widow or widower with
dependent children.
Ans: filing status
Saving for retirement can also save taxes by making contributions to a
_____.
Ans: 401(k) plan
All rights reserved © 2025/ 2026 |
