Question 1

If a taxpayer does not provide more than half the support of a child,that child cannot qualify as the taxpayer's qualifying child.

Accepted Answer

A) True 
 B)False

Question 2

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

Accepted Answer

A) True 
 B)False

Question 3

The Inouyes filed jointly in 2019.Their AGI is $78,000.They reported $2,000 of qualified business income and $22,000 of itemized deductions.They have two children,one of whom qualifies as their dependent as a qualifying child.The 2019 standard deduction amount for MFJ taxpayers is $24,400.What is the total amount of from AGI deductions they are allowed to claim on their 2019 tax return?

Accepted Answer

$24,800,determined as follows: From AGI

Question 4

When determining whether a child meets the qualifying child support test for the parents,scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

A) True 
 B)False

Question 5

Kabuo and Melinda got married on December 15,Year 1.Kabuo's salary for the year was $54,000,and Melinda's was $62,000.In addition,Kabuo received $250 of interest income,($100 of which was from municipal bonds),and Melinda received $10,000 of alimony from a former spouse (pre-2019 divorce decree).If Kabuo and Melinda choose to file jointly,what is their Year 1 gross income?

Accepted Answer

$126,150,c

Question 6

Tom Suzuki's tax liability for the year is $2,450.He had $2,050 of federal income taxes withheld from his paycheck during the year by his employer and has $2,000 in tax credits.What are Tom's taxes due or tax refund for the year?

Accepted Answer

$1,600 tax

Question 7

Sheri and Jake Woodhouse have one daughter,Emma,who is 16 years old.They also have taken in Emma's friend,Harriet,who has lived with them since February of the current year and is also 16 years of age.The Woodhouses have not legally adopted Harriet but Emma often refers to Harriet as her "sister." The Woodhouses provide all of the support for both girls,and both girls live at the Woodhouse residence.Which of the following statements is true regarding whom Sheri and Jake may claim as dependents for the current year?

Accepted Answer

A) They may claim Emma as a dependent qualifying child but may not claim Harriet as a dependent. 
B) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying child. 
C) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying relative. 
D) None of these statements are true. 
A) They may claim Emma as a dependent qualifying child but may not claim Harriet as a dependent. 
B) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying child. 
C) They may claim Emma as a dependent qualifying child and they may claim Harriet as a dependent qualifying relative. 
D) None of these statements are true.

Question 8

Lydia and John Wickham filed jointly in Year 1.They divorced in Year 2.Late in Year 2,the IRS discovered that the Wickhams underpaid their Year 1 taxes by $2,000.Both Lydia and John worked in Year 1 and received equal income but John had $2,000 less tax withheld than Lydia did.Who is legally liable for the tax underpayment?

Accepted Answer

A) Lydia. 
B) John. 
C) Both Lydia and John. 
D) Neither Lydia nor John. 
A) Lydia. 
B) John. 
C) Both Lydia and John. 
D) Neither Lydia nor John.

Question 9

Which of the following statements regarding tax deductions is false?

Accepted Answer

A) Taxpayers are not entitled to any deductions unless specific provisions in the tax code allow the deductions. 
B) Deductions can be labeled as deductions above the line or deductions below the line. 
C) From AGI deductions tend to be associated with business activities while for AGI deductions tend to be associated with personal activities. 
D) The standard deduction is a from AGI deduction. 
A) Taxpayers are not entitled to any deductions unless specific provisions in the tax code allow the deductions. 
B) Deductions can be labeled as deductions above the line or deductions below the line. 
C) From AGI deductions tend to be associated with business activities while for AGI deductions tend to be associated with personal activities. 
D) The standard deduction is a from AGI deduction.

Question 10

For AGI deductions are commonly referred to as deductions "below the line."

Accepted Answer

A) True 
 B)False

Question 11

When determining whether a child meets the qualifying child support test for the child's grandparents,scholarships earned by the child do not count as self-support provided by the child.

Accepted Answer

A) True 
 B)False

Question 12

Jan is unmarried and has no children,but she provides all of the financial support for her mother,who lives in an apartment across town.Jan's mother qualifies as Jan's dependent.Which is the most advantageous filing status available to Jan?

Accepted Answer

A) Single. 
B) Head of household. 
C) Qualifying individual. 
D) Surviving single. 
A) Single. 
B) Head of household. 
C) Qualifying individual. 
D) Surviving single.

Question 13

Which of the following statements is true?

Accepted Answer

A) Income character determines the tax year in which the income is taxed. 
B) Income character depends on the taxpayer's filing status. 
C) Qualified dividend income is taxed at a lower rate than an equal amount of ordinary income. 
D) A taxpayer selling a capital asset at a gain recognizes ordinary income. 
A) Income character determines the tax year in which the income is taxed. 
B) Income character depends on the taxpayer's filing status. 
C) Qualified dividend income is taxed at a lower rate than an equal amount of ordinary income. 
D) A taxpayer selling a capital asset at a gain recognizes ordinary income.

Question 14

Which of the following is not an itemized deduction?

Accepted Answer

A) Alimony paid. 
B) Medical expenses. 
C) Real estate taxes. 
D) Charitable contributions. 
A) Alimony paid. 
B) Medical expenses. 
C) Real estate taxes. 
D) Charitable contributions.

Question 15

Lebron received $50,000 of compensation from his employer and he received $400 of interest from a municipal bond.What is the amount of Lebron's gross income from these items?

Accepted Answer

A) $0. 
B) $400. 
C) $50,000. 
D) $50,400. 
A) $0. 
B) $400. 
C) $50,000. 
D) $50,400.

Question 16

For purposes of determining filing status,which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year?

Accepted Answer

A) The taxpayer claims a child as a dependent. 
B) The taxpayer pays more than half the costs of maintaining his or her home for the entire year and the home is the principal residence for a dependent qualifying child for more than half the year. 
C) The taxpayer files a tax return separate from the other spouse. 
D) The spouse does not live in the taxpayer's home at all during the year. 
A) The taxpayer claims a child as a dependent. 
B) The taxpayer pays more than half the costs of maintaining his or her home for the entire year and the home is the principal residence for a dependent qualifying child for more than half the year. 
C) The taxpayer files a tax return separate from the other spouse. 
D) The spouse does not live in the taxpayer's home at all during the year.

Question 17

The Dashwoods have calculated their taxable income to be $88,000 for 2019,which includes $2,000 of long-term capital gains.Using the appropriate tax rate schedule,calculate the Dashwoods' income tax liability assuming they are married and file a joint return.

Accepted Answer

$10,937,computed as

Question 18

Taxpayers are allowed to deduct a specific amount for each of their dependents.

Accepted Answer

A) True 
 B)False

Question 19

Anna is a qualifying child of her parents.However,she was recently married.Anna and her husband filed a joint return.If they had filed separately,Anna would have owed no taxes,though her husband would have owed just $5.Because Anna herself owed no taxes,her parents can still claim her as a dependent.

Accepted Answer

A) True 
 B)False

Question 20

The relationship test for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

Accepted Answer

A) True 
 B)False

If a taxpayer does not provide more than half the support of a child,that child cannot qualify as the taxpayer's qualifying child.

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

When determining whether a child meets the qualifying child support test for the parents,scholarships earned by the child do not count as self-support provided by the child.

Tom Suzuki's tax liability for the year is $2,450.He had $2,050 of federal income taxes withheld from his paycheck during the year by his employer and has $2,000 in tax credits.What are Tom's taxes due or tax refund for the year?

Which of the following statements regarding tax deductions is false?

For AGI deductions are commonly referred to as deductions "below the line."

When determining whether a child meets the qualifying child support test for the child's grandparents,scholarships earned by the child do not count as self-support provided by the child.

Jan is unmarried and has no children,but she provides all of the financial support for her mother,who lives in an apartment across town.Jan's mother qualifies as Jan's dependent.Which is the most advantageous filing status available to Jan?

Which of the following statements is true?

Which of the following is not an itemized deduction?

Lebron received $50,000 of compensation from his employer and he received $400 of interest from a municipal bond.What is the amount of Lebron's gross income from these items?

For purposes of determining filing status,which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year?

The Dashwoods have calculated their taxable income to be $88,000 for 2019,which includes $2,000 of long-term capital gains.Using the appropriate tax rate schedule,calculate the Dashwoods' income tax liability assuming they are married and file a joint return.

Taxpayers are allowed to deduct a specific amount for each of their dependents.

The relationship test for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

An Introduction to Tax

Tax Compliance,the Irs,and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income,deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation,reorganization,and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 4: Individual Income Tax Overview,dependents,and Filing Status

If a taxpayer does not provide more than half the support of a child,that child cannot qualify as the taxpayer's qualifying child.

Taxpayers are generally allowed to claim deductions for expenditures unless a specific tax provision indicates the expenditure is not deductible.

When determining whether a child meets the qualifying child support test for the parents,scholarships earned by the child do not count as self-support provided by the child.

Tom Suzuki's tax liability for the year is $2,450.He had $2,050 of federal income taxes withheld from his paycheck during the year by his employer and has $2,000 in tax credits.What are Tom's taxes due or tax refund for the year?

Which of the following statements regarding tax deductions is false?

For AGI deductions are commonly referred to as deductions "below the line."

When determining whether a child meets the qualifying child support test for the child's grandparents,scholarships earned by the child do not count as self-support provided by the child.

Jan is unmarried and has no children,but she provides all of the financial support for her mother,who lives in an apartment across town.Jan's mother qualifies as Jan's dependent.Which is the most advantageous filing status available to Jan?

Which of the following statements is true?

Which of the following is not an itemized deduction?

Lebron received $50,000 of compensation from his employer and he received $400 of interest from a municipal bond.What is the amount of Lebron's gross income from these items?

For purposes of determining filing status,which of the following is not a requirement for a married taxpayer to be treated as unmarried at the end of the year?

The Dashwoods have calculated their taxable income to be $88,000 for 2019,which includes $2,000 of long-term capital gains.Using the appropriate tax rate schedule,calculate the Dashwoods' income tax liability assuming they are married and file a joint return.

Taxpayers are allowed to deduct a specific amount for each of their dependents.

The relationship test for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer.

An Introduction to Tax

Tax Compliance,the Irs,and Tax Authorities

Tax Planning Strategies and Related Limitations

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income,deductions,and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation,reorganization,and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Ustaxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters