Exam 1: The Individual Income Tax Return

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 2013 tax return?

Ronald is 92 years old and in poor health.Clever investing earlier in his life has left him with a sizeable income.He is able to support his son Ed.Ed is 67 years old and a bit "confused," so he lives in a nursing home.Ed's income is less than $2,000.How many exemptions should Ronald claim on his tax return?

John,45 years old and unmarried,contributed $1,000 monthly in 2013 to the support of his parents' household.The parents lived alone and their income for 2013 consisted of $500 from dividends and interest.What is John's filing status and how many exemptions should he claim on his 2013 tax return?

Taxpayers can download tax forms from the IRS Internet site.

Depending on the amounts of income and other tax information,some individuals may report their income on:

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Melissa is a 35-year-old single taxpayer with adjusted gross income of $49,000.She uses the standard deduction and has no dependents. a.Calculate Melissa's 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?

Monica is a maid in a San Francisco hotel.Monica received $500 in unreported tips during 2013 and owes Social Security and Medicare taxes on these tips.Her total income for the year,including tips,is $4,500.Is Monica required to file an income tax return for 2013? Why?

Taxpayers who do not qualify for married,head of household,or qualifying widow or widower filing status must file as single.

Robert is a single taxpayer who has AGI of $145,000 in 2013;his taxable income is $122,000.What is his federal tax liability for 2013?

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.

Alexis has a long-term capital loss of $13,000 on the sale of stock in 2013.She has no other capital gains or losses for the year.Her taxable income without this transaction is $60,000.What is her 2013 taxable income considering this capital loss?

Your standard deduction will be $6,100 in 2013 if you are:

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions,whichever is higher.

An unmarried taxpayer who maintains a household for a dependent child and whose spouse died four years ago should file as:

Which of the following taxpayers does not have to file a tax return for 2013?

Electronically filed tax returns:

Nathan is 24 years old and works as an accountant in a salmon cannery in Alaska.His total wages for 2013 were $32,000.Federal income tax of $4,500 was withheld from his wages.His only other income was $210 of interest and he had no deductible expenses. Calculate the income tax due or income tax refund on Nathan's 2013 individual income tax return.Use the tax formula for individuals and show your work.

What is the formula for computing taxable income,as summarized in the text?