Question 1

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.

Accepted Answer

A) True 
 B)False

Question 2

Mr and Mrs Reece couldn't complete their 2018 Form 1040 before April 15, 2019. They estimate that they will have a $700 balance of tax due with the return. Which of the following statement is true?

Accepted Answer

A)  If the Reeces fail to file their return by April 15, they may opt to request an extension but still will owe penalties to the IRS. 
B)  The Reeces can file an extension request by April 15 to extend the tax payment and filing date for six months without penalty. 
C)  The Reeces can file an extension request by April 15 to extend the filing date for six months without penalty. They must pay the $700 estimated balance of tax due with the extension request. 
D)  None of the above is true. 
A)  If the Reeces fail to file their return by April 15, they may opt to request an extension but still will owe penalties to the IRS. 
B)  The Reeces can file an extension request by April 15 to extend the tax payment and filing date for six months without penalty. 
C)  The Reeces can file an extension request by April 15 to extend the filing date for six months without penalty. They must pay the $700 estimated balance of tax due with the extension request. 
D)  None of the above is true.

Question 3

Mr and Mrs Lansing, who file a joint tax return, have four dependent children under age 17. Which of the following statements is false?

Accepted Answer

A)  If the Lansings' AGI is $77,900, their child credit is $8,000. 
B)  If the Lansings' AGI is $417,300, their child credit is $7,100. 
C)  If the Lansings' AGI is $596,000, their child credit is zero. 
D)  None of the above is false. 
A)  If the Lansings' AGI is $77,900, their child credit is $8,000. 
B)  If the Lansings' AGI is $417,300, their child credit is $7,100. 
C)  If the Lansings' AGI is $596,000, their child credit is zero. 
D)  None of the above is false.

Question 4

Which of the following statements regarding tax payments is true?

Accepted Answer

A)  Sole proprietors must make quarterly estimated payments of income tax, but self-employment tax is not due until the return is filed. 
B)  Sole proprietors must make quarterly estimated payments of self-employment tax, but income tax is not due until the return is filed. 
C)  Sole proprietors must make quarterly estimated payments of income tax and self-employment tax. 
D)  Sole proprietors are not required to pay income tax or self-employment tax until the return is filed. 
A)  Sole proprietors must make quarterly estimated payments of income tax, but self-employment tax is not due until the return is filed. 
B)  Sole proprietors must make quarterly estimated payments of self-employment tax, but income tax is not due until the return is filed. 
C)  Sole proprietors must make quarterly estimated payments of income tax and self-employment tax. 
D)  Sole proprietors are not required to pay income tax or self-employment tax until the return is filed.

Question 5

A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income.

Accepted Answer

A) True 
 B)False

Question 6

Mr and Mrs David file a joint tax return. They have $169,300 taxable income in 2018, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

Accepted Answer

A)  $7,032 
B)  $3,516 
C)  $7,350 
D)  None of the above. 
A)  $7,032 
B)  $3,516 
C)  $7,350 
D)  None of the above.

Question 7

An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements regarding filing status is false?

Accepted Answer

A)  A widow or widower maintaining a home for a dependent child qualifies as surviving spouse for two tax years following the year of the spouse's death. 
B)  Marital status for tax purposes is determined on the last day of the year. 
C)  Any unmarried individual with a dependent child qualifies as head of household. 
D)  An unmarried individual without children or other dependents files as a single taxpayer. 
A)  A widow or widower maintaining a home for a dependent child qualifies as surviving spouse for two tax years following the year of the spouse's death. 
B)  Marital status for tax purposes is determined on the last day of the year. 
C)  Any unmarried individual with a dependent child qualifies as head of household. 
D)  An unmarried individual without children or other dependents files as a single taxpayer.

Question 9

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

Accepted Answer

A)  $24,000 
B)  $27,900 
C)  $25,300 
D)  $26,600 
A)  $24,000 
B)  $27,900 
C)  $25,300 
D)  $26,600

Question 10

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

Accepted Answer

A)  The extension of time to file does not extend the time for payment of tax. 
B)  The extension of time to file is for four months. 
C)  An individual who requests an extension of time to file must provide the IRS with a reasonable explanation. 
D)  The IRS may deny an extension request if the taxpayer fails to provide a reasonable explanation. 
A)  The extension of time to file does not extend the time for payment of tax. 
B)  The extension of time to file is for four months. 
C)  An individual who requests an extension of time to file must provide the IRS with a reasonable explanation. 
D)  The IRS may deny an extension request if the taxpayer fails to provide a reasonable explanation.

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  The rate schedule for calculating regular tax liability depends on the taxpayer's filing status. 
B)  All taxpayer, regardless of the amount of their taxable income, pay a 10% tax on their first bracket of income. 
C)  The individual tax rate schedules are adjusted annually for inflation. 
D)  All of the tax brackets in the single rate schedule are one-half of the brackets in the married-filing-jointly rate schedule. 
A)  The rate schedule for calculating regular tax liability depends on the taxpayer's filing status. 
B)  All taxpayer, regardless of the amount of their taxable income, pay a 10% tax on their first bracket of income. 
C)  The individual tax rate schedules are adjusted annually for inflation. 
D)  All of the tax brackets in the single rate schedule are one-half of the brackets in the married-filing-jointly rate schedule.

Question 13

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 credit.

Accepted Answer

A)  $1,000 
B)  $3,000 
C)  $6,000 
D)  $8,000 
A)  $1,000 
B)  $3,000 
C)  $6,000 
D)  $8,000

Question 14

Alice is an unmarried individual. She has $182,340 taxable income in 2018. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Accepted Answer

A)  Single $40,038; head of household $63,819 
B)  Single $63,819; head of household $38,647 
C)  Single $40,038; head of household $38,647 
D)  None of the above 
A)  Single $40,038; head of household $63,819 
B)  Single $63,819; head of household $38,647 
C)  Single $40,038; head of household $38,647 
D)  None of the above

Question 15

An individual with $700,000 taxable income has the same marginal rate as a single taxpayer or as a head of household.

Accepted Answer

A) True 
 B)False

Question 16

Leon died on August 23, 2016, and his wife Mary has not remarried. Since her husband's death, Mary has maintained a home for her two dependent children, who were ages 7 and 4 when their father died. Which of the following describes Mary's filing status for 2017, 2018, and 2019?

Accepted Answer

A)  Surviving spouse for 2017, 2018, and 2019. 
B)  Surviving spouse for 2017 and 2018; head of household for 2019. 
C)  Head of household for 2017, 2018, and 2019. 
D)  Surviving spouse for 2017; head of household for 2018 and 2019. 
A)  Surviving spouse for 2017, 2018, and 2019. 
B)  Surviving spouse for 2017 and 2018; head of household for 2019. 
C)  Head of household for 2017, 2018, and 2019. 
D)  Surviving spouse for 2017; head of household for 2018 and 2019.

Question 17

Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until October 15 of the following year.

Accepted Answer

A) True 
 B)False

Question 18

Mr Andrews is age 58, legally blind, and files as a single taxpayer. His standard deduction for 2018 is $12,000.

Accepted Answer

A) True 
 B)False

Question 19

The goal of the Section 199A deduction is to lower the effective tax rate on business profit earned by pass through entities.

Accepted Answer

A) True 
 B)False

Question 20

A taxpayer with a non-child dependent may be eligible for the full $2,000 child tax credit provided the taxpayer's AGI does not exceed the phase-out thresholds.

Accepted Answer

A) True 
 B)False

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 Reece couldn't complete their 2018 Form 1040 before April 15, 2019. They estimate that they will have a $700 balance of tax due with the return. Which of the following statement is true?

Mr and Mrs Lansing, who file a joint tax return, have four dependent children under age 17. Which of the following statements is false?

Which of the following statements regarding tax payments is true?

A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income.

Mr and Mrs David file a joint tax return. They have $169,300 taxable income in 2018, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

Which of the following statements regarding filing status is false?

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

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

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.

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

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 credit.

Alice is an unmarried individual. She has $182,340 taxable income in 2018. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

An individual with $700,000 taxable income has the same marginal rate as a single taxpayer or as a head of household.

Leon died on August 23, 2016, and his wife Mary has not remarried. Since her husband's death, Mary has maintained a home for her two dependent children, who were ages 7 and 4 when their father died. Which of the following describes Mary's filing status for 2017, 2018, and 2019?

Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until October 15 of the following year.

Mr Andrews is age 58, legally blind, and files as a single taxpayer. His standard deduction for 2018 is $12,000.

The goal of the Section 199A deduction is to lower the effective tax rate on business profit earned by pass through entities.

A taxpayer with a non-child dependent may be eligible for the full $2,000 child tax credit provided the taxpayer's AGI does not exceed the phase-out thresholds.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes as Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income from Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 14: The Individual Tax Formula

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 Reece couldn't complete their 2018 Form 1040 before April 15, 2019. They estimate that they will have a $700 balance of tax due with the return. Which of the following statement is true?

Mr and Mrs Lansing, who file a joint tax return, have four dependent children under age 17. Which of the following statements is false?

Which of the following statements regarding tax payments is true?

A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income.

Mr and Mrs David file a joint tax return. They have $169,300 taxable income in 2018, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

Which of the following statements regarding filing status is false?

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

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

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.

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

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 credit.

Alice is an unmarried individual. She has $182,340 taxable income in 2018. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

An individual with $700,000 taxable income has the same marginal rate as a single taxpayer or as a head of household.

Leon died on August 23, 2016, and his wife Mary has not remarried. Since her husband's death, Mary has maintained a home for her two dependent children, who were ages 7 and 4 when their father died. Which of the following describes Mary's filing status for 2017, 2018, and 2019?

Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until October 15 of the following year.

Mr Andrews is age 58, legally blind, and files as a single taxpayer. His standard deduction for 2018 is $12,000.

The goal of the Section 199A deduction is to lower the effective tax rate on business profit earned by pass through entities.

A taxpayer with a non-child dependent may be eligible for the full $2,000 child tax credit provided the taxpayer's AGI does not exceed the phase-out thresholds.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes as Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income from Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters