Exam 14: The Individual Tax Formula

Mrs.Paley died on July 14,2018.Her husband has not remarried.The Paleys' two children,ages 34 and 36,are financially independent.Mr.Paley may file as a surviving spouse in 2018 and 2019.

Last year,Mr.Corbett's AGI was $141,000,and his total tax liability was $33,650.This year,his total tax liability is $35,290.Compute the minimum amount of current year tax that Mr.Corbett had to prepay (withholding and estimated payments)to avoid an underpayment penalty.

In computing taxable income,an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

Mr.Andrews is age 58,legally blind,and files as a single taxpayer.His standard deduction for 2019 is $12,200.

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions less the QBI deduction.

The unextended due date for the individual tax return (Form 1040)is the 15^th day of the third month following the close of the taxable year.

Mr.and Mrs.Luang reported $1,417,900 ordinary taxable income for regular tax purposes and had $139,100 positive AMT adjustments and preferences.Compute their tentative minimum tax.

Mr.and Mrs.Toliver's AGI on their jointly filed return is $339,000.Regardless of the number of their children,the Tolivers are not eligible for a child credit.

Mr.and Mrs.Kay,ages 68 and 66,file a joint return.Mrs.Kay is legally blind.Compute their standard deduction.

Alice is an unmarried individual.She has $182,340 taxable income in 2019.Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Which of the following taxpayers can't use the tax rates for married filing jointly in 2019?

Ms.Kilo is an unmarried individual.She has $219,344 taxable income in 2019.Compute Ms.Kilo's regular tax liability if she files as a single taxpayer and if she files as a surviving spouse.

Which of the following statements regarding the calculation of regular tax liability is false?

Hunter,age 17,is considered a dependent of his parents for tax purposes.This year,Hunter earned $16,000 for appearing in a television commercial.Compute Hunter's standard deduction.

Mr.and Mrs.Eller's AGI last year was $287,300,and their total tax was $70,268.The couple's safe-harbor estimate of current year tax is $77,295.

Mr.and Mrs.Kain reported $80,000 AGI on their joint return.The couple has four dependent children: Beatrice,age 19; Bruce,age 16; Angie,age 11,and Arnold,age 8.Compute the Kains' child tax credit.

For the taxable year in which a married person dies,the widow or widower can file a joint return with the deceased.

An individual must pay the greater of her regular income tax or her alternative minimum tax (AMT)for the year.

Which of the following statements concerning extensions of time to file an individual tax return is true?

Mr.and Mrs.Daniels,ages 45,and 42,had the following income items in 2019: Mr.and Mrs.Daniels have no dependents and claim the standard deduction.Compute their income tax liability on a joint return.