Exam 1: The Individual Income Tax Return

Which of the following is not a capital asset?

Mr.and Mrs.Vonce,both age 62,file a joint return for 2013.They provided all the support for their daughter who is 19 years old,legally blind,and who earns no income.Their son,age 21 and a full- time student at a university,had $4,200 of income and provided 70 percent of his own support during 2013.How many exemptions may Mr.and Mrs.Vonce claim on their 2013 tax return?

If a taxpayer's adjusted gross income exceeds certain threshold amounts,he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2013.

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

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

Karen is single and earns wages of $250,000 in 2013.She has no other income.How much is her ACA Medicare surtax on earned income?

Irma,widowed in 2012,pays all costs related to the home in which she and her unmarried son live.Her son does not qualify as her dependent.What is her filing status for 2013?

Wesley owns and operates the Cheshire Chicken Ranch in Turpid,Nevada.The income from this ranch is $49,000.Wesley wishes to use the easiest possible tax form.He may file:

For each of the following situations,indicate whether the taxpayers)isare)required to file a tax return for 2013.Explain your answer. a.Debra,age 68,and Jerry,age 70,are married and file a joint return.They received $24,000 in interest income from a savings account. b.Margie is a single taxpayer with wages in 2013 of $8,400 and interest income of $200. c.Janie,age 30,and Scott,age 28,are married and file a joint tax return.They had $17,000 in earnings from wages. d.Kim,age 20,is a single college student who is claimed as a dependent by her parents.She earned $2,000 from a part-time job and has $450 in interest income. e.Stefanie,a 25-year-old single taxpayer,has wages of $1,500,from which $80 of federal income tax was withheld.

Partnership capital gains and losses are allocated separately to each of the partners.

Norman and Linda are married taxpayers with taxable income of $125,000. a.When you calculate their tax liability are you required to use the tax tables or the tax rate schedules,or does it matter? b.What is their tax liability?

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 $4,000 of wages from a part-time job at the college book store.What is Ann's filing status for 2013?

Amended individual returns are filed on:

Madeline is single and supports her 85-year-old parents who live in a senior home paid for by Madeline and have no income.What is Madeline's filing status and why?

Theodore,age 74,and Maureen,age 59,are married taxpayers with two dependents.Their adjusted gross income for the 2013 tax year is $43,000,and they have itemized deductions of $7,750.Determine the following for Theodore and Maureen's 2013 income tax return: a.The number of exemptions b.The greater of the amount of their standard deduction or their itemized deductions c.Their taxable income

Determine from the tax table or the tax rate schedule,whichever is appropriate,the amount of the income tax for each of the following taxpayers for 2013. Taxpayer(s) Filing Status Taxable Income Macintosh Single \ 35,680 Hindmarsh MFS \ 62,100 Kinney MFJ \ 142,000 Rosenthal H of H \ 91,350 Wilk Single \ 21,130

Taxpayers who are blind get the benefit of:

Which of the following forms may be filed by individual taxpayers?

Oscar and Mary have no dependents and file a joint income tax return for 2013.They have adjusted gross income of $145,000 and itemized deductions of $32,000.What is the amount of taxable income that Oscar and Mary must report on their 2013 income tax return?

A taxpayer who maintains a household with an unmarried child may qualify to file as head of household even if the child is not the taxpayer's dependent.