Student Question
Student Question of the Week: Income Tax
Student Question: Student Question from: John C. Course: Income Tax Question: I had a quick question about taxpayer return penalties. In the Review Exercise below, I’m getting an answer of $780, but you all are showing an answer of $810. Why isn’t my math adding up? I’m counting 7 months for April to October. Here is…
Read MoreStudent Question of the Week: Fundamentals – Calculator
Student Question from: Susan M.Course: Fundamentals – Calculator Student Question: In example 3 (shown below), why do we use monthly instead of annual for the interest and period of time? Example 3: Bill wants to purchase enough life insurance to provide his family with an inflation-hedged income of $4,000 per month for 25 years. You…
Read MoreStudent Question of the Week: Insurance
Student Question from: Jacky ACourse: Insurance Student Question: It says here that “Most policies will guarantee that the death benefit will never go below the face amount.” I thought that the death benefit and face amount are interchangeable terms. Is the death benefit equal to the face amount plus the cash value? Instructor Response: Very…
Read MoreStudent Question of the Week: Income Tax
Student Question from: Rachael GCourse: Income Tax Student Question: I had a couple questions in regards to tax filing penalties. 1) Since the penalty is calculated from net tax due, what happens when a taxpayer overpaid taxes and gets a refund? How is the penalty calculated? 2) Is the minimum penalty after 60 days on…
Read MoreStudent Question of the Week: Estate Planning – Gift Tax
Student Question: Question: What would happen if a person used the maximum lifetime gift exclusion of $5,120,000 in the year 2012. But the person dies in the year 2015 assuming the limit dropped to a lower amount like 1 or 2 million? The lifetime amount gifted would be higher than the current limit. Instructor Response: Answer: …
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