Question 1

A head of household taxpayer with a dependent child had wages of $47,200.Which is the simplest form this person can file?

Accepted Answer

A) 1040EZ. 
B) 1040ES. 
C) 1040A. 
D) 1040. 
A) 1040EZ. 
B) 1040ES. 
C) 1040A. 
D) 1040. C

Question 2

A married taxpayer filing separately must show the name,address,and social security number of the spouse on the tax return.

Accepted Answer

A) True 
 B)False  False

Question 3

The IRS can impose a ________ penalty on any portion of understatement of tax that is attributable to fraud.

Accepted Answer

A) 20% 
B) 25% 
C) 75% 
D) 5% 
A) 20% 
B) 25% 
C) 75% 
D) 5% C

Question 4

Severin,who is 20 years old and a full- time student,is claimed by his parent as a dependent.However,in 2017,he earned $5,350.What is the amount of the personal exemption that he can claim on his tax return?

Accepted Answer

A) $4,050. 
B) $1,050. 
C) $0. 
D) $5,400. 
A) $4,050. 
B) $1,050. 
C) $0. 
D) $5,400.

Question 5

Elisa is 21 years of age and a full-time student living with her parents.She had wages of $680 ($75 of income tax withholding)for 2017.Can Elisa claim her exemption on her return even though her parents will claim her as a dependent on their tax return?

Accepted Answer

A) Elisa and her parents can both claim the exemption. 
B) No one can claim the exemption for Elisa. 
C) Yes,Elisa can claim the exemption. 
D) No,Elisa cannot claim the exemption. 
A) Elisa and her parents can both claim the exemption. 
B) No one can claim the exemption for Elisa. 
C) Yes,Elisa can claim the exemption. 
D) No,Elisa cannot claim the exemption.

Question 6

The basic standard deduction in 2017 for a single taxpayer who is 67 years old and not blind is:

Accepted Answer

A) $7,850. 
B) $6,350. 
C) $7,900. 
D) $1,550. 
A) $7,850. 
B) $6,350. 
C) $7,900. 
D) $1,550.

Question 7

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2017?

Accepted Answer

The taxpayer can only claim a

Question 8

John forgot to file his tax return by April 15.He did not file an extension.John finally filed his tax return on June 30 and had a remaining tax liability of $1,500.What is John's failure to file penalty? Assume he made all his payments on time.

Accepted Answer

A) $375. 
B) $225. 
C) $233. 
D) $300. 
A) $375. 
B) $225. 
C) $233. 
D) $300.

Question 9

The standard deduction in 2017 for a married couple,under 65 and not blind,is $12,700.

Accepted Answer

A) True 
 B)False

Question 10

For a qualifying relative to be claimed as a dependent,this person must either be related to the taxpayer,or be a member of the taxpayer's household for the entire year.Select the relative who must be part of the taxpayer's household for the entire year.

Accepted Answer

A) Mother. 
B) Sister. 
C) Cousin. 
D) Son-in-law. 
A) Mother. 
B) Sister. 
C) Cousin. 
D) Son-in-law.

Question 11

Many deductions and credits are determined with reference to adjusted gross income (AGI).

Accepted Answer

A) True 
 B)False

Question 12

The tax tables stop at taxable income of $115,000.

Accepted Answer

A) True 
 B)False

Question 13

If the taxpayer still owes tax after April 15,the IRS assesses interest based on the remaining amount owed.

Accepted Answer

A) True 
 B)False

Question 14

What is the limit on the social security amount for 2017?

Accepted Answer

A) $127,200. 
B) $117,000. 
C) $113,700. 
D) $118,500. 
A) $127,200. 
B) $117,000. 
C) $113,700. 
D) $118,500.

Question 15

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

Accepted Answer

A) 1040A. 
B) 1040. 
C) 1040ES. 
D) 1040EZ. 
A) 1040A. 
B) 1040. 
C) 1040ES. 
D) 1040EZ.

Question 16

George is 21 years of age and a full-time student living with his parents.He had wages of $1,375 ($140 of income tax withholding)for 2017.Can George claim his exemption on his return even though his parents will claim him as a dependent on their tax return?

Accepted Answer

A) No,George cannot claim the exemption. 
B) George and his parents can both claim the exemption. 
C) No one can claim the exemption for George. 
D) Yes,George can claim the exemption. 
A) No,George cannot claim the exemption. 
B) George and his parents can both claim the exemption. 
C) No one can claim the exemption for George. 
D) Yes,George can claim the exemption.

Question 17

The exemption amount is subject to annual adjustment for inflation.

Accepted Answer

A) True 
 B)False

Question 18

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is not part of the four specific tests?

Accepted Answer

A) Relationship test or member of household test. 
B) Age test. 
C) Support test. 
D) Gross income test. 
A) Relationship test or member of household test. 
B) Age test. 
C) Support test. 
D) Gross income test.

Question 19

What is the amount of the tax liability for a qualifying widow(er)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

Accepted Answer

A) $25,234. 
B) $21,878. 
C) $30,400. 
D) $27,665. 
A) $25,234. 
B) $21,878. 
C) $30,400. 
D) $27,665.

Question 20

Most taxpayers make payments to the IRS through income tax withholdings and quarterly estimated tax payments.

Accepted Answer

A) True 
 B)False

A head of household taxpayer with a dependent child had wages of $47,200.Which is the simplest form this person can file?

A married taxpayer filing separately must show the name,address,and social security number of the spouse on the tax return.

The IRS can impose a ________ penalty on any portion of understatement of tax that is attributable to fraud.

Severin,who is 20 years old and a full- time student,is claimed by his parent as a dependent.However,in 2017,he earned $5,350.What is the amount of the personal exemption that he can claim on his tax return?

Elisa is 21 years of age and a full-time student living with her parents.She had wages of $680 ($75 of income tax withholding)for 2017.Can Elisa claim her exemption on her return even though her parents will claim her as a dependent on their tax return?

The basic standard deduction in 2017 for a single taxpayer who is 67 years old and not blind is:

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2017?

John forgot to file his tax return by April 15.He did not file an extension.John finally filed his tax return on June 30 and had a remaining tax liability of $1,500.What is John's failure to file penalty? Assume he made all his payments on time.

The standard deduction in 2017 for a married couple,under 65 and not blind,is $12,700.

For a qualifying relative to be claimed as a dependent,this person must either be related to the taxpayer,or be a member of the taxpayer's household for the entire year.Select the relative who must be part of the taxpayer's household for the entire year.

Many deductions and credits are determined with reference to adjusted gross income (AGI).

The tax tables stop at taxable income of $115,000.

If the taxpayer still owes tax after April 15,the IRS assesses interest based on the remaining amount owed.

What is the limit on the social security amount for 2017?

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

George is 21 years of age and a full-time student living with his parents.He had wages of $1,375 ($140 of income tax withholding)for 2017.Can George claim his exemption on his return even though his parents will claim him as a dependent on their tax return?

The exemption amount is subject to annual adjustment for inflation.

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is not part of the four specific tests?

What is the amount of the tax liability for a qualifying widow(er)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

Most taxpayers make payments to the IRS through income tax withholdings and quarterly estimated tax payments.

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

Gross Income: Inclusions and Exclusions

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

A head of household taxpayer with a dependent child had wages of $47,200.Which is the simplest form this person can file?

A married taxpayer filing separately must show the name,address,and social security number of the spouse on the tax return.

The IRS can impose a ________ penalty on any portion of understatement of tax that is attributable to fraud.

Severin,who is 20 years old and a full- time student,is claimed by his parent as a dependent.However,in 2017,he earned $5,350.What is the amount of the personal exemption that he can claim on his tax return?

Elisa is 21 years of age and a full-time student living with her parents.She had wages of $680 ($75 of income tax withholding)for 2017.Can Elisa claim her exemption on her return even though her parents will claim her as a dependent on their tax return?

The basic standard deduction in 2017 for a single taxpayer who is 67 years old and not blind is:

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2017?

John forgot to file his tax return by April 15.He did not file an extension.John finally filed his tax return on June 30 and had a remaining tax liability of $1,500.What is John's failure to file penalty? Assume he made all his payments on time.

The standard deduction in 2017 for a married couple,under 65 and not blind,is $12,700.

For a qualifying relative to be claimed as a dependent,this person must either be related to the taxpayer,or be a member of the taxpayer's household for the entire year.Select the relative who must be part of the taxpayer's household for the entire year.

Many deductions and credits are determined with reference to adjusted gross income (AGI).

The tax tables stop at taxable income of $115,000.

If the taxpayer still owes tax after April 15,the IRS assesses interest based on the remaining amount owed.

What is the limit on the social security amount for 2017?

A 37- year-old taxpayer with a dependent child and claiming head of household status has received $21,000 in child support payments and earned wages of $46,000.Which is the simplest form this person can file?

George is 21 years of age and a full-time student living with his parents.He had wages of $1,375 ($140 of income tax withholding)for 2017.Can George claim his exemption on his return even though his parents will claim him as a dependent on their tax return?

The exemption amount is subject to annual adjustment for inflation.

To be a qualifying relative,the taxpayer must meet three general tests and four specific tests.Which one is not part of the four specific tests?

What is the amount of the tax liability for a qualifying widow(er)with a dependent child and having taxable income of $121,600? All answers should be rounded to the nearest dollar.

Most taxpayers make payments to the IRS through income tax withholdings and quarterly estimated tax payments.

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

Gross Income: Inclusions and Exclusions

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