Question 1

Working condition fringes include:

Accepted Answer

A) Professional organization dues paid by the employer. 
B) Bonus earned by the employee. 
C) The use of an employer-provided vehicle for business purposes. 
D) Professional organization dues paid by the employer and the use of an employer-provided vehicle for business purposes. 
A) Professional organization dues paid by the employer. 
B) Bonus earned by the employee. 
C) The use of an employer-provided vehicle for business purposes. 
D) Professional organization dues paid by the employer and the use of an employer-provided vehicle for business purposes.

Question 2

Interest income on Series EE and Series E U.S.Savings Bonds can be reported:

Accepted Answer

A) only at the maturity date of the bond issue. 
B) only on an annual basis. 
C) either at the maturity date or on an annual basis. 
D) No need to report;this type of interest income is always tax-exempt income. 
A) only at the maturity date of the bond issue. 
B) only on an annual basis. 
C) either at the maturity date or on an annual basis. 
D) No need to report;this type of interest income is always tax-exempt income.

Question 3

Almost all individuals use the cash receipts and disbursements method of accounting.

Accepted Answer

A) True 
 B)False

Question 4

A married,filing jointly taxpayer's lower limit of provisional income for social security purposes is:

Accepted Answer

A) $44,000. 
B) $25,000. 
C) $34,000. 
D) $32,000. 
A) $44,000. 
B) $25,000. 
C) $34,000. 
D) $32,000.

Question 5

An individual must complete Schedule B (Forms 1040A or 1040)if the following situation occurs:

Accepted Answer

A) Received interest income of $1,500. 
B) Received dividend income of $1,000. 
C) Received interest income of $100. 
D) Received tax-exempt interest of $700. 
A) Received interest income of $1,500. 
B) Received dividend income of $1,000. 
C) Received interest income of $100. 
D) Received tax-exempt interest of $700.

Question 6

Lisa performed bookkeeping services for Donald charging him $650.Donald agreed that he would pay Lisa's credit card bill for the same amount.Lisa has received an economic benefit and must report $650 in income on her tax return.

Accepted Answer

A) True 
 B)False

Question 7

If a person sells his or her car to a friend for a note receivable,this person has income that needs to be reported.

Accepted Answer

A) True 
 B)False

Question 8

Employer-paid premiums on group-term life insurance in excess of $50,000 coverage are taxable to the employees based on the cost of the excess.

Accepted Answer

A) True 
 B)False

Question 9

Compensation for sickness or injury which is exempt from income includes:

Accepted Answer

A) Unemployment compensation payments. 
B) Damages (other than punitive damages)received as a result of personal physical injuries or sickness. 
C) Wages for sick days paid by an employer. 
D) All of these. 
A) Unemployment compensation payments. 
B) Damages (other than punitive damages)received as a result of personal physical injuries or sickness. 
C) Wages for sick days paid by an employer. 
D) All of these.

Question 10

A taxpayer can exclude from gross income any interest earned on bonds issued by any state,any possession of the United States,any political subdivision of either of the foregoing,or of the District of Columbia as long as these bonds are not issued for private activities.

Accepted Answer

A) True 
 B)False

Question 11

A taxpayer received a 1099-G for 2017 showing $350 of state income tax refund that he received during the year from 2016 state taxes paid.Does the taxpayer have to report the state income tax refund of $350 in 2017?

Accepted Answer

If the taxpayer used the standard deduct

Question 12

Pedro agreed to repair a house for a client and started to work on December 30,2015.On January 2,2017,he completed the job and received payment from the client.Pedro must record the income in:

Accepted Answer

A) 2015. 
B) 2016. 
C) 2017. 
D) Both 2016 and 2017. 
A) 2015. 
B) 2016. 
C) 2017. 
D) Both 2016 and 2017.

Question 13

Income may be realized in the form of:

Accepted Answer

A) Property. 
B) Cash. 
C) Services. 
D) All of these. 
A) Property. 
B) Cash. 
C) Services. 
D) All of these.

Question 14

Jeff owns 250 shares of Coca Cola common stock that have increased in value by $15 each.He must report the increase in income because a transaction has occurred.

Accepted Answer

A) True 
 B)False

Question 15

Constructive receipt means the income is available to or in the control of the taxpayer regardless of whether the taxpayer chooses to utilize the income.

Accepted Answer

A) True 
 B)False

Question 16

What is the tax liability for a taxpayer who is married filing jointly with taxable income of $67,500,that includes a taxable qualified dividend of $1,000? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

Accepted Answer

A) $10,125. 
B) $9,201. 
C) $9,046. 
D) $9,196. 
A) $10,125. 
B) $9,201. 
C) $9,046. 
D) $9,196.

Question 17

Employer-paid premiums on life insurance are not taxable to the employees,unless the coverage is in excess of ________.

Accepted Answer

A) $5,000 
B) $5,250 
C) $51,000 
D) $50,000 
A) $5,000 
B) $5,250 
C) $51,000 
D) $50,000

Question 18

Martin redeemed $3,000 (principal of $2,000 and interest of $1,000)of Series I Savings Bonds to pay qualified higher education expenses.His qualified expenses for the year totaled $2,500 and AGI consists of wages of $20,000.What is the amount of interest that Martin must include in income? (Round interim calculations to three decimal places)

Accepted Answer

A) $0. 
B) $833. 
C) $167. 
D) $1,000. 
A) $0. 
B) $833. 
C) $167. 
D) $1,000.

Question 19

Name three items that are exempt from income under the umbrella of compensation for injuries or sickness.

Accepted Answer

The following items are exempt from inco

Question 20

If an individual owns Series EE bonds,this person must report interest income,i.e. ,the increase in bond value on an annual basis.

Accepted Answer

A) True 
 B)False

Working condition fringes include:

Interest income on Series EE and Series E U.S.Savings Bonds can be reported:

Almost all individuals use the cash receipts and disbursements method of accounting.

A married,filing jointly taxpayer's lower limit of provisional income for social security purposes is:

An individual must complete Schedule B (Forms 1040A or 1040)if the following situation occurs:

Lisa performed bookkeeping services for Donald charging him $650.Donald agreed that he would pay Lisa's credit card bill for the same amount.Lisa has received an economic benefit and must report $650 in income on her tax return.

If a person sells his or her car to a friend for a note receivable,this person has income that needs to be reported.

Employer-paid premiums on group-term life insurance in excess of $50,000 coverage are taxable to the employees based on the cost of the excess.

Compensation for sickness or injury which is exempt from income includes:

A taxpayer can exclude from gross income any interest earned on bonds issued by any state,any possession of the United States,any political subdivision of either of the foregoing,or of the District of Columbia as long as these bonds are not issued for private activities.

A taxpayer received a 1099-G for 2017 showing $350 of state income tax refund that he received during the year from 2016 state taxes paid.Does the taxpayer have to report the state income tax refund of $350 in 2017?

Pedro agreed to repair a house for a client and started to work on December 30,2015.On January 2,2017,he completed the job and received payment from the client.Pedro must record the income in:

Income may be realized in the form of:

Jeff owns 250 shares of Coca Cola common stock that have increased in value by $15 each.He must report the increase in income because a transaction has occurred.

Constructive receipt means the income is available to or in the control of the taxpayer regardless of whether the taxpayer chooses to utilize the income.

What is the tax liability for a taxpayer who is married filing jointly with taxable income of $67,500,that includes a taxable qualified dividend of $1,000? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

Employer-paid premiums on life insurance are not taxable to the employees,unless the coverage is in excess of ________.

Name three items that are exempt from income under the umbrella of compensation for injuries or sickness.

If an individual owns Series EE bonds,this person must report interest income,i.e. ,the increase in bond value on an annual basis.

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters

Exam 3: Gross Income: Inclusions and Exclusions

Working condition fringes include:

Interest income on Series EE and Series E U.S.Savings Bonds can be reported:

Almost all individuals use the cash receipts and disbursements method of accounting.

A married,filing jointly taxpayer's lower limit of provisional income for social security purposes is:

An individual must complete Schedule B (Forms 1040A or 1040)if the following situation occurs:

Lisa performed bookkeeping services for Donald charging him $650.Donald agreed that he would pay Lisa's credit card bill for the same amount.Lisa has received an economic benefit and must report $650 in income on her tax return.

If a person sells his or her car to a friend for a note receivable,this person has income that needs to be reported.

Employer-paid premiums on group-term life insurance in excess of $50,000 coverage are taxable to the employees based on the cost of the excess.

Compensation for sickness or injury which is exempt from income includes:

A taxpayer can exclude from gross income any interest earned on bonds issued by any state,any possession of the United States,any political subdivision of either of the foregoing,or of the District of Columbia as long as these bonds are not issued for private activities.

A taxpayer received a 1099-G for 2017 showing $350 of state income tax refund that he received during the year from 2016 state taxes paid.Does the taxpayer have to report the state income tax refund of $350 in 2017?

Pedro agreed to repair a house for a client and started to work on December 30,2015.On January 2,2017,he completed the job and received payment from the client.Pedro must record the income in:

Income may be realized in the form of:

Jeff owns 250 shares of Coca Cola common stock that have increased in value by $15 each.He must report the increase in income because a transaction has occurred.

Constructive receipt means the income is available to or in the control of the taxpayer regardless of whether the taxpayer chooses to utilize the income.

What is the tax liability for a taxpayer who is married filing jointly with taxable income of $67,500,that includes a taxable qualified dividend of $1,000? All answers should be rounded to the nearest dollar. Use the appropriate Tax Tables or Tax Rate Schedules.

Employer-paid premiums on life insurance are not taxable to the employees,unless the coverage is in excess of ________.

Name three items that are exempt from income under the umbrella of compensation for injuries or sickness.

If an individual owns Series EE bonds,this person must report interest income,i.e. ,the increase in bond value on an annual basis.

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

Filters