Question 1

In which of the following situations is the taxpayer not required to file a 2015 income tax return?

Accepted Answer

A) When an individual has a current year income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800. 
C) When the taxpayer is a 35-year-old head of household with wages of $16,800. 
D) When the taxpayer is a 79-year-old widow with wages of $16,500. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $23,000. 
A) When an individual has a current year income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800. 
C) When the taxpayer is a 35-year-old head of household with wages of $16,800. 
D) When the taxpayer is a 79-year-old widow with wages of $16,500. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $23,000.

Question 2

Nathan is 24 years old and works as an accountant in a salmon cannery in Alaska. His total wages for 2015 were $32,000. Federal income tax of $4,500 was withheld from his wages. His only other income was $260 of interest and he had no deductible expenses.
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Calculate the income tax due or income tax refund on Nathan's 2015 individual income tax return. Use the tax formula for individuals and show your work.

Accepted Answer

The answer of Nathan is 24 years old and works...

Question 3

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Accepted Answer

A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above. 
A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above.

Question 4

Distinguish between reporting entities and taxable entities and give examples of each.

Accepted Answer

A partnership is an example of a reporti

Question 5

Melissa is a 35-year-old single taxpayer with adjusted gross income of $49,600. She uses the standard deduction and has no dependents.
a.Calculate Melissa's 2015 taxable income.Please show your work.
b.When you calculate Melissa's tax liability, are you required to use the tax tables or the tax rate schedules, or does it matter?
c.What is Melissa's tax liability?

Accepted Answer

a. $39,300 = $49,600 - $6,300

Question 6

Electronic filing (e-filing):

Accepted Answer

A) Reduces the chances that the IRS will make mistakes when inputting tax return information. 
B) Generally results in a slower refund. 
C) Can be done only by telephone. 
D) Requires the services of a professional. 
A) Reduces the chances that the IRS will make mistakes when inputting tax return information. 
B) Generally results in a slower refund. 
C) Can be done only by telephone. 
D) Requires the services of a professional.

Question 7

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Accepted Answer

A) True 
 B)False

Question 8

Barry is age 45 and a single taxpayer. In 2015, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2015 income tax return, calculate the following amounts:
a.His personal exemption amount
b.Barry's taxable income

Accepted Answer

The answer of Barry is age 45 and a single...

Question 9

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2015?

Accepted Answer

A) Single 
B) Head of household 
C) Married, filing separately 
D) Qualifying widow(er) 
E) None of the above 
A) Single 
B) Head of household 
C) Married, filing separately 
D) Qualifying widow(er) 
E) None of the above

Question 10

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
-After living together for 6 months, the couple married December 31.

Accepted Answer

A) Single 
B) Married, filing a joint return 
C) Married, filing separate returns 
D) Head of household 
E) Qualifying widow(er)
F)Married, filing joint or married, filing separate 
A) Single 
B) Married, filing a joint return 
C) Married, filing separate returns 
D) Head of household 
E) Qualifying widow(er)
F)Married, filing joint or married, filing separate

Question 11

George, age 67, and Linda, age 60, are married taxpayers with three dependent children. Their adjusted gross income for the 2015 tax year is $142,000. They have itemized deductions of $24,000. Determine the following for their joint tax return for 2015:
a.The number of exemptions
b.Exemption deduction amount
c.The greater of the amount of their standard deduction or their itemized deductions
d.Taxable income

Accepted Answer

The answer of George, age 67, and Linda, age 60,...

Question 12

Brian is 60 years old, single and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father's residence. What is the total standard deduction amount that Brian should claim on his 2015 tax return?

Accepted Answer

A) $9,250 
B) $10,500 
C) $10,800 
D) $13,250 
E) None of the above 
A) $9,250 
B) $10,500 
C) $10,800 
D) $13,250 
E) None of the above

Question 13

Jill is a 16-year-old child who is claimed as a dependent by her parents. Jill's only income is $1,400 from her bank savings account. What is the amount of Jill's standard deduction for 2015?

Accepted Answer

A) $1,200 
B) $1,050 
C) $4,000 
D) $6,300 
E) None of the above 
A) $1,200 
B) $1,050 
C) $4,000 
D) $6,300 
E) None of the above

Question 14

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Accepted Answer

A) The relative must receive less than $4,000 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above. 
A) The relative must receive less than $4,000 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above.

Question 15

Alan, whose wife died in 2013, filed a joint tax return for 2013. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2015, Alan should file as:

Accepted Answer

A) Single 
B) Qualifying widow(er) 
C) Head of household 
D) Married, filing separately 
E) None of the above 
A) Single 
B) Qualifying widow(er) 
C) Head of household 
D) Married, filing separately 
E) None of the above

Question 16

The two types of exemptions are the personal exemption and the dependency exemption.

Accepted Answer

A) True 
 B)False

Question 17

Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2015 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

Accepted Answer

A) $18,000 
B) $53,000 
C) $63,000 
D) $77,000 
E) None of the above 
A) $18,000 
B) $53,000 
C) $63,000 
D) $77,000 
E) None of the above

Question 18

Which of the following is not a goal of the tax law?

Accepted Answer

A) Encouraging certain social goals such as contributions to charity. 
B) Encouraging certain economic goals such as a thriving business community. 
C) Encouraging smaller families. 
D) Raising revenue to operate the government. 
E) None of the above are goals of the tax law. 
A) Encouraging certain social goals such as contributions to charity. 
B) Encouraging certain economic goals such as a thriving business community. 
C) Encouraging smaller families. 
D) Raising revenue to operate the government. 
E) None of the above are goals of the tax law.

Question 19

Karl's father, Vronsky, is a 60-year-old Russian citizen who lived in Russia for the full year. Karl supported Vronsky while he looked for work. Vronsky had no income. Can Karl claim Vronsky as a dependent?

Accepted Answer

No. Vronsky cannot be claimed

Question 20

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
-The unmarried taxpayer supports his dependent mother, who lives next door in a separate apartment.

Accepted Answer

A) Single 
B) Married, filing a joint return 
C) Married, filing separate returns 
D) Head of household 
E) Qualifying widow(er)
F)Married, filing joint or married, filing separate 
A) Single 
B) Married, filing a joint return 
C) Married, filing separate returns 
D) Head of household 
E) Qualifying widow(er)
F)Married, filing joint or married, filing separate

In which of the following situations is the taxpayer not required to file a 2015 income tax return?

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Distinguish between reporting entities and taxable entities and give examples of each.

Electronic filing (e-filing):

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Barry is age 45 and a single taxpayer. In 2015, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2015 income tax return, calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2015?

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -After living together for 6 months, the couple married December 31.

Brian is 60 years old, single and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father's residence. What is the total standard deduction amount that Brian should claim on his 2015 tax return?

Jill is a 16-year-old child who is claimed as a dependent by her parents. Jill's only income is $1,400 from her bank savings account. What is the amount of Jill's standard deduction for 2015?

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Alan, whose wife died in 2013, filed a joint tax return for 2013. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2015, Alan should file as:

The two types of exemptions are the personal exemption and the dependency exemption.

Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2015 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

Which of the following is not a goal of the tax law?

Karl's father, Vronsky, is a 60-year-old Russian citizen who lived in Russia for the full year. Karl supported Vronsky while he looked for work. Vronsky had no income. Can Karl claim Vronsky as a dependent?

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The unmarried taxpayer supports his dependent mother, who lives next door in a separate apartment.

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 1: The Individual Income Tax Return

In which of the following situations is the taxpayer not required to file a 2015 income tax return?

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Distinguish between reporting entities and taxable entities and give examples of each.

Electronic filing (e-filing):

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Barry is age 45 and a single taxpayer. In 2015, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims one exemption on his 2015 income tax return, calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2015?

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -After living together for 6 months, the couple married December 31.

Brian is 60 years old, single and legally blind. Brian supports his father, who is 88 years old and blind, by paying the rent and other costs of his father's residence. What is the total standard deduction amount that Brian should claim on his 2015 tax return?

Jill is a 16-year-old child who is claimed as a dependent by her parents. Jill's only income is $1,400 from her bank savings account. What is the amount of Jill's standard deduction for 2015?

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Alan, whose wife died in 2013, filed a joint tax return for 2013. He did not remarry and continues to maintain his home in which his four dependent children live. In the preparation of his tax return for 2015, Alan should file as:

The two types of exemptions are the personal exemption and the dependency exemption.

Bob owns a rental property that he bought several years ago for $250,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2015 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

Which of the following is not a goal of the tax law?

Karl's father, Vronsky, is a 60-year-old Russian citizen who lived in Russia for the full year. Karl supported Vronsky while he looked for work. Vronsky had no income. Can Karl claim Vronsky as a dependent?

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The unmarried taxpayer supports his dependent mother, who lives next door in a separate apartment.

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters