Exam 1: The Individual Income Tax Return

Oscar and Mary have no dependents and file a joint income tax return for 2019. They have adjusted gross income (all wages) of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2019 income tax return?

Roger, age 39, and Lucy, age 37, are married taxpayers who file a joint income tax return for 2019. They have gross income of $26,100. Their deductions for adjusted gross income are $550 and they have itemized deductions of $5,400. If Roger and Lucy have no dependents for 2019, calculate the following amounts: ? a.Their adjusted gross income b.The greater of the amount of their standard deduction or their itemized deductions c.Their taxable income ?

Electronic filing (e-filing):

State two reasons why a person would want to e-file their return instead of mailing it.

The two types of dependents are qualifying child or qualifying dependent.

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

If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew, who is not her dependent, she may use the head of household filing status.

Mr. and Mrs. Vonce, both age 62, file a joint return for 2019. 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 2019. What is the other dependent credit Mr. and Mrs. Vonce may claim on their 2019 tax return?

The head of household tax rates are higher than the rates for a single taxpayer.

An individual, age 22, enrolled on a full-time basis at a college, is considered a student for purposes of determining whether a dependency exemption is permitted.

Which of the following is not a capital asset?

Theodore, age 74, and Maureen, age 59, are married taxpayers with two dependents. Their adjusted gross income for the 2019 tax year is $43,600, and they have itemized deductions of $7,800. Determine the following for Theodore and Maureen's 2019 income tax return: ? a.The greater of the amount of their standard deduction or their itemized deductions b.Their taxable income ?

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

Electronically filed tax returns:

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

George, age 67, and Linda, age 60, are married taxpayers with three dependent children. Their adjusted gross income for the 2019 tax year is $142,000. They have itemized deductions of $24,600. Determine the following for their joint tax return for 2019: ​ a.Exemption deduction amount b.The greater of the amount of their standard deduction or their itemized deductions c.Taxable income ​

Barry is age 45 and a single taxpayer. In 2019, he has gross income of $17,000 and itemized deductions of $6,500. If Barry claims no dependents on his 2019 income tax return, calculate the following amounts: a.His personal exemption amount b.Barry's taxable income

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -After living together for 6 months, the couple married on December 31.

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

A taxpayer with self-employment income of $600 must file a tax return.