Question 1

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file form 1040A:

Accepted Answer

A) Salary income. 
B) Joint return status. 
C) Withholding on wages. 
D) Self-employment income. 
A) Salary income. 
B) Joint return status. 
C) Withholding on wages. 
D) Self-employment income.

Question 2

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

Accepted Answer

A) Sister 
B) Adopted child 
C) Aunt 
D) Parent 
E) All of the above satisfy the test 
A) Sister 
B) Adopted child 
C) Aunt 
D) Parent 
E) All of the above satisfy the test

Question 3

All taxpayers may use the tax rate schedule to determine their tax liability.

Accepted Answer

A) True 
 B)False

Question 4

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 $3,900 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 $3,900 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 5

Steven,age 35 and single,is a commodities broker.His salary for 2013 is $110,000 and he has taxable interest income of $40,000.He has no deductions for adjusted gross income.His itemized deductions are $30,000.Steven does not have any dependents.
a.What is the amount of his adjusted gross income?
b.What are his allowable itemized deductions?
c.What is his deduction for personal exemptions?
d.What is his taxable income?
e.What is his regular tax liability from the tax rate schedules?

Accepted Answer

a.$150,000 = $110,000 + $40,00

Question 6

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

Accepted Answer

A) True 
 B)False

Question 7

Curt and Linda were married on December 31,2013.What are their options for filing status for their 2013 taxes?

Accepted Answer

They may file either as marrie

Question 8

Barry is age 45 and a single taxpayer.In 2013,he has gross income of $15,000 and itemized deductions of $6,500.If Barry claims one exemption on his 2013 income tax return,calculate the following amounts:
a.His personal exemption amount
b.Barry's taxable income

Accepted Answer

a.$3,900
b

Question 9

Albert and Louise,ages 66 and 64,respectively,filed a joint return for 2013.They provided all of the support for their blind 19 year-old son,who had no gross income.They also provided the total support of Louise's father,who is a citizen and life-long resident of Peru.How many exemptions may they claim on their 2013 tax return?

Accepted Answer

A) 2 
B) 3 
C) 4 
D) 5 
E) None of the above 
A) 2 
B) 3 
C) 4 
D) 5 
E) None of the above

Question 10

The 0.9 percent ACA Medicare surtax applies to:

Accepted Answer

A) Earned income 
B) Tax exempt income 
C) Gain on the sale of a principal residence 
D) IRA distributions 
A) Earned income 
B) Tax exempt income 
C) Gain on the sale of a principal residence 
D) IRA distributions

Question 11

An individual is a head of household.What is her standard deduction?

Accepted Answer

A) $12,200 
B) $6,100 
C) $14,600 
D) $8,950 
E) None of the above 
A) $12,200 
B) $6,100 
C) $14,600 
D) $8,950 
E) None of the above

Question 12

Internet users can sign on to HYPERLINK "http://www.irs.gov/" http://www.irs.gov/ and:

Accepted Answer

A) Download tax forms and publications. 
B) Find links to other useful IRS pages. 
C) Use a search function to find forms and publications. 
D) All of the above. 
A) Download tax forms and publications. 
B) Find links to other useful IRS pages. 
C) Use a search function to find forms and publications. 
D) All of the above.

Question 13

The IRS:

Accepted Answer

A) has a YouTube video site. 
B) links to the H & R Block Web site. 
C) provides information on how to choose a stock. 
D) has a game page. 
A) has a YouTube video site. 
B) links to the H & R Block Web site. 
C) provides information on how to choose a stock. 
D) has a game page.

Question 14

Eugene and Velma are married.For 2013,Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns and are each entitled to claim one personal exemption.They have no deductions for adjusted gross income.Eugene's itemized deductions are $11,200 and Velma's are $4,000.Assuming Eugene and Velma do not live in a community property state,what is Eugene's taxable income?

Accepted Answer

A) $25,000 
B) $13,800 
C) $13,600 
D) $9,900 
E) None of the above 
A) $25,000 
B) $13,800 
C) $13,600 
D) $9,900 
E) None of the above

Question 15

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment.
a.Can she claim him as a dependent?
b.Can she claim head of household filing status? Why or why not?

Accepted Answer

a.Yes,her son qualifies as a d

Question 16

Hansel and Gretel are married taxpayers who file a joint income tax return for 2013.They have no
dependents.On their 2013 income tax return,they have adjusted gross income of $62,000 and total itemized deductions of $4,000.What is their taxable income?

Accepted Answer

$42,000 =

Question 17

Gerald is single and earns $80,000 in dividend income and $180,000 in wage income in 2013.Compute his additional ACA Medicare surtax on net investment income.

Accepted Answer

$2,280 = 3

Question 18

Eugene and Velma are married.For 2013,Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns and are each entitled to claim one personal exemption.They have no deductions for adjusted gross income.Eugene's itemized deductions are $11,200 and Velma's are $4,000.Assuming Eugene and Velma do not live in a community property state,what is Velma's taxable income?

Accepted Answer

A) $14,300 
B) $20,350 
C) $26,000 
D) $22,100 
E) None of the above 
A) $14,300 
B) $20,350 
C) $26,000 
D) $22,100 
E) None of the above

Question 19

A corporation is a reporting entity but not a tax-paying entity.

Accepted Answer

A) True 
 B)False

Question 20

Taxpayers with self-employment income of $400 or more must file a tax return.

Accepted Answer

A) True 
 B)False

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file form 1040A:

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

All taxpayers may use the tax rate schedule to determine their tax liability.

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

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

Curt and Linda were married on December 31,2013.What are their options for filing status for their 2013 taxes?

Barry is age 45 and a single taxpayer.In 2013,he has gross income of $15,000 and itemized deductions of $6,500.If Barry claims one exemption on his 2013 income tax return,calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

The 0.9 percent ACA Medicare surtax applies to:

An individual is a head of household.What is her standard deduction?

Internet users can sign on to HYPERLINK "http://www.irs.gov/" http://www.irs.gov/ and:

The IRS:

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a.Can she claim him as a dependent? b.Can she claim head of household filing status? Why or why not?

Hansel and Gretel are married taxpayers who file a joint income tax return for 2013.They have no dependents.On their 2013 income tax return,they have adjusted gross income of $62,000 and total itemized deductions of $4,000.What is their taxable income?

Gerald is single and earns $80,000 in dividend income and $180,000 in wage income in 2013.Compute his additional ACA Medicare surtax on net investment income.

A corporation is a reporting entity but not a tax-paying entity.

Taxpayers with self-employment income of $400 or more must file a tax return.

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

Form 1040 allows a taxpayer to report which of the following items that are not allowed for taxpayers who file form 1040A:

Which of the following relatives will not satisfy the relationship test for the dependency exemption?

All taxpayers may use the tax rate schedule to determine their tax liability.

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

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

Curt and Linda were married on December 31,2013.What are their options for filing status for their 2013 taxes?

Barry is age 45 and a single taxpayer.In 2013,he has gross income of $15,000 and itemized deductions of $6,500.If Barry claims one exemption on his 2013 income tax return,calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

The 0.9 percent ACA Medicare surtax applies to:

An individual is a head of household.What is her standard deduction?

Internet users can sign on to HYPERLINK "http://www.irs.gov/" http://www.irs.gov/ and:

The IRS:

Jeri is single and supports her 45 year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a.Can she claim him as a dependent? b.Can she claim head of household filing status? Why or why not?

Hansel and Gretel are married taxpayers who file a joint income tax return for 2013.They have no dependents.On their 2013 income tax return,they have adjusted gross income of $62,000 and total itemized deductions of $4,000.What is their taxable income?

Gerald is single and earns $80,000 in dividend income and $180,000 in wage income in 2013.Compute his additional ACA Medicare surtax on net investment income.

A corporation is a reporting entity but not a tax-paying entity.

Taxpayers with self-employment income of $400 or more must file a tax return.

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