Question 1

Which of the following is not a filing status?

Accepted Answer

A)  Head of household. 
B)  Unmarried. 
C)  Qualifying widow or widower. 
D)  Married filing jointly. 
A)  Head of household. 
B)  Unmarried. 
C)  Qualifying widow or widower. 
D)  Married filing jointly.

Question 2

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2018, Ed and Jane realized the following items of income and expense:
   
They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2018 standard deduction amount for MFJ taxpayers is $24,000.
What is the couple's adjusted gross income?

Accepted Answer

$99,000 se

Question 3

All of the following are tests for determining qualifying child status except the ________.

Accepted Answer

A)  gross income test 
B)  age test 
C)  support test 
D)  residence test 
A)  gross income test 
B)  age test 
C)  support test 
D)  residence test

Question 4

Which of the following statements regarding dependents is True?

Accepted Answer

A)  To qualify as a dependent of another, an individual must be a resident of the United States. 
B)  To qualify as a dependent of another, an individual may not file a joint return with the individual's spouse under any circumstance. 
C)  To qualify as a dependent of another, an individual must have a family relationship with the other person. 
D)  To qualify as a dependent of another, an individual must be either a qualifying child or a qualifying relative of the other person. 
A)  To qualify as a dependent of another, an individual must be a resident of the United States. 
B)  To qualify as a dependent of another, an individual may not file a joint return with the individual's spouse under any circumstance. 
C)  To qualify as a dependent of another, an individual must have a family relationship with the other person. 
D)  To qualify as a dependent of another, an individual must be either a qualifying child or a qualifying relative of the other person.

Question 5

Anna is a 21-year-old full-time college student (she plans on returning home at the end of the school year). Her total support for the year was $34,000 (including $8,000 of tuition). Anna covered $12,000 of her support costs out of her own pocket (from savings, she did not work) and she received an $8,000 scholarship that covered all of her tuition costs. Which of the following statements regarding who is allowed to claim Anna as an exemption is True?

Accepted Answer

A)  Even if Anna's parents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000), they would not be able to claim her as a dependent. 
B)  Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) they would not be able to claim her as a dependent. 
C)  Because she provided more than half her own support, Anna would not qualify as her parents' dependent. 
D)  None of these statements is True. 
A)  Even if Anna's parents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000), they would not be able to claim her as a dependent. 
B)  Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000) they would not be able to claim her as a dependent. 
C)  Because she provided more than half her own support, Anna would not qualify as her parents' dependent. 
D)  None of these statements is True.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding realized income is True?

Accepted Answer

A)  Taxpayers need not include realized income in gross income unless a specific provision of the tax code requires them to do so. 
B)  Realized income requires some type of transaction or exchange with a second party. 
C)  Once income is realized it may not be excluded from gross income. 
D)  None of these statements is True. 
A)  Taxpayers need not include realized income in gross income unless a specific provision of the tax code requires them to do so. 
B)  Realized income requires some type of transaction or exchange with a second party. 
C)  Once income is realized it may not be excluded from gross income. 
D)  None of these statements is True.

Question 8

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

Accepted Answer

A) True 
 B)False

Question 9

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?

Accepted Answer

A)  Married filing separately. 
B)  Single. 
C)  Head of household. 
D)  Qualifying widower. 
A)  Married filing separately. 
B)  Single. 
C)  Head of household. 
D)  Qualifying widower.

Question 10

Mason and his wife Madison have been married for five years. Jaxon, who is 18 years old and unrelated to Mason and Madison, has been living with Mason and Madison for the last two years. In May of year 1, Mason and Madison divorced. Mason and Jaxon stayed in the home and Madison moved out. During year 2, Mason provided all of Jaxon's support and Jaxon lived in the home for all of year 2. Jaxon did not earn any income during year 2. What is Mason's most favorable filing status for year 2?

Accepted Answer

A)  Single. 
B)  Married filing separately. 
C)  Surviving spouse. 
D)  Head of household. 
A)  Single. 
B)  Married filing separately. 
C)  Surviving spouse. 
D)  Head of household.

Question 11

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 12

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 13

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

Accepted Answer

A) True 
 B)False

Question 14

In year 1, Harold Weston's wife died. Since her death, he has maintained a household for their son Frank (age 3), his qualifying child. Which is the most advantageous filing status available to Harold in year 4?

Accepted Answer

A)  Married filing joint. 
B)  Surviving spouse. 
C)  Qualifying widower. 
D)  Head of household. 
A)  Married filing joint. 
B)  Surviving spouse. 
C)  Qualifying widower. 
D)  Head of household.

Question 15

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Accepted Answer

A) True 
 B)False

Question 16

Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

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 17

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 18

The only from AGI deductions are the standard deduction and itemized deductions.

Accepted Answer

A) True 
 B)False

Question 19

In year 1, the Bennetts' 25-year-old daughter, Jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. In previous years, Jane has never worked and her parents have always been able to claim her as a dependent. In year 1, a kind neighbor offers to pay for all of Jane's educational and living expenses. Which of the following statements is most accurate regarding whether Jane's parents would be allowed to claim Jane as a dependent for year 1 assuming the neighbor pays for all of Jane's support?

Accepted Answer

A)  No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative. 
B)  Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child. 
C)  No, Jane is too old to be considered a qualifying child and fails the support test of a qualifying relative. 
D)  Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is a considered a qualifying child of the Bennetts. 
A)  No, Jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative. 
B)  Yes, because she is a full-time student and does not provide more than half of her own support, Jane is considered her parent's qualifying child. 
C)  No, Jane is too old to be considered a qualifying child and fails the support test of a qualifying relative. 
D)  Yes, because she is a student, her absence is considered as "temporary." Consequently she meets the residence test and is a considered a qualifying child of the Bennetts.

Question 20

The Tanakas filed jointly in 2018. Their AGI is $120,000. They reported $10,000 of qualified business income and $26,000 of itemized deductions. They also have two dependent qualifying children. The 2018 standard deduction amount for MFJ taxpayers is $24,000. What is the total amount of from AGI deductions they are allowed to claim on their 2018 tax return?

Accepted Answer

$28,000, computed as follows:
From AGI d

Which of the following is not a filing status?

All of the following are tests for determining qualifying child status except the ________.

Which of the following statements regarding dependents is True?

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

Which of the following statements regarding realized income is True?

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?

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?

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

In year 1, Harold Weston's wife died. Since her death, he has maintained a household for their son Frank (age 3), his qualifying child. Which is the most advantageous filing status available to Harold in year 4?

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

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.

The only from AGI deductions are the standard deduction and itemized deductions.

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

Filters

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

Which of the following is not a filing status?

All of the following are tests for determining qualifying child status except the ________.

Which of the following statements regarding dependents is True?

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

Which of the following statements regarding realized income is True?

The test for a qualifying child includes a gross income restriction while the test for qualifying relative does not.

In June of year 1, Jake's wife Darla died. The couple did not have any children and Jake did not remarry in year 1 or year 2. Which is the most favorable filing status for Jake in year 2?

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?

For purposes of the qualifying child residence test, a child's temporary absence from the taxpayer's home for attending school full-time is counted as though the child lived in the taxpayer's home during the absence.

In year 1, Harold Weston's wife died. Since her death, he has maintained a household for their son Frank (age 3), his qualifying child. Which is the most advantageous filing status available to Harold in year 4?

An individual may never be considered as both a qualifying relative and a qualifying child of the same taxpayer.

Jane is unmarried and has no children, but provides more than half of her mother's financial support. Jane's mother lives in an apartment across town and has a part-time job earning $5,000 a year. Which is the most advantageous filing status available to Jane?

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.

The only from AGI deductions are the standard deduction and itemized deductions.

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

Filters