FiCEP Final: CUNA Review EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Select the statement that correctly describes a progressive tax. - Correct Answers ✅A progressive tax requires people to pay more as they earn more.Pick the statement that best describes a regressive tax. - Correct Answers ✅A regressive tax charges the same tax rate regardless of the taxpayer's income.Why are government fees and surcharges sometimes described as a form of tax? - Correct Answers ✅Because they generate income for the government.Which taxing authorities are worthy of the member's attention? - Correct Answers ✅The member must attend to all tax authorities at all levels of government to maintain their financial well-being.How do taxes impact your personal spending? - Correct Answers ✅Taxes can make personal spending go up or down.
Which is larger: the penalty for failing to pay federal income
taxes on time, or the penalty for failing to file a tax return when taxes are owed? - Correct Answers ✅The penalty for failing to file a tax return is significantly higher. 1 / 4
FiCEP Final: CUNA Review EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) What is the right attitude to take toward taxes to protect your financial well-being? - Correct Answers ✅Taxes are an essential financial responsibility.When is the IRS most likely to impose the maximum penalty on taxpayers? - Correct Answers ✅When they are forced to track down the taxpayer.What is a good rule to follow when dealing with a tax auditor or another issue involving the IRS? - Correct Answers ✅Never assume the IRS is always correct.What is the financial counselor's role in aiding members with complex tax issues? - Correct Answers ✅The counselor provides basic information and refers members to tax programs or tax experts.What happens when taxpayers who file a late return for any or all of the 4 most recent tax years are owed a refund? - Correct Answers ✅No penalty is charged and the taxpayer gets the full refund amount.What tax services are provided by the Volunteer Income Tax Assistance (VITA) program? - Correct Answers ✅Free tax return assistance to low- or moderate-income taxpayers. 2 / 4
FiCEP Final: CUNA Review EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) What benefit is offered when VITA services are combined with credit union programs that encourage taxpayers to open accounts for direct deposit of tax refunds? - Correct Answers ✅Direct deposit reduces the time required to get a refund, which counters the appeal of refund anticipation loans.What is the name of the organization that offers free tax assistance to taxpayers age 60 or older, those with disabilities or special needs, or who qualify for earned income or homestead tax credits? - Correct Answers ✅Tax Counseling for the Elderly (TCE) What percent of tax payers are eligible to use the "Free File Online" service offered as a partnership between the IRS and tax software companies? - Correct Answers ✅70% are eligible When members use tax refunds to pay down debts, which debts should be paid first? - Correct Answers ✅Always pay the debts with high interest rates or that could prompt garnishments.How have education, information, and direct deposit programs impacted taxpayers' use of refund anticipation loans? - Correct Answers ✅The use of refund anticipation loans is decreasing. 3 / 4
FiCEP Final: CUNA Review EXAM
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) What rule of thumb should be used when defining taxable income? - Correct Answers ✅If you benefit financially, you are likely to be taxed for it.Which type of qualified IRA withdrawal is exempt from income tax? - Correct Answers ✅Roth IRA withdrawals are exempt.How do different tax authorities treat items excluded from federal taxable income? - Correct Answers ✅Exclusions vary from state to state.What is the first step for effectively managing income taxes?
- Correct Answers ✅Determining your filing status.
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What should be the goal of managing a taxpayer's income tax withholding? - Correct Answers ✅To maintain cash flow while avoiding a tax bill at filing time.What happens to year-end balances "left over" in Section 125 plans or health savings accounts (HSAs)? - Correct Answers ✅Section 125 balances are forfeited, while HSA balances are rolled over