Question 1

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

Accepted Answer

A) $25,701. 
B) $31,056. 
C) $18,634. 
D) $25,309. 
A) $25,701. 
B) $31,056. 
C) $18,634. 
D) $25,309.

Question 2

The interest charged by the IRS for the first three months of 2017 was:

Accepted Answer

A) 3%. 
B) 5%. 
C) 4%. 
D) 6%. 
A) 3%. 
B) 5%. 
C) 4%. 
D) 6%.

Question 3

In 2017,the additional standard deduction for a single taxpayer,who is 65 or older and not blind,is $1,200.

Accepted Answer

A) True 
 B)False

Question 4

Can the taxpayer avoid the failure to pay on time penalty by just filing an automatic extension to file his or her tax return?

Accepted Answer

A taxpayer can file an automatic six-mon

Question 5

What qualifications are necessary to file as qualifying widow(er)?

Accepted Answer

The qualifications necessary to file as

Question 6

To qualify for head of household status,a taxpayer must maintain a household that is the principal place of abode of a qualifying person for more than half the year.

Accepted Answer

A) True 
 B)False

Question 7

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2017.
1.Leo and Mary who are under 65 and filing a joint return.They have no dependents.
2.Sergio who is single.
3.Peter who is over 65 and single.
4.Anna who is 38 and filing as head of household with a dependent child.
5.Frank who is 45 and blind and is filing as married filing separately.

Accepted Answer

1.$12,700.
2.$6,350.
3.$7,900

Question 8

Personal exemptions are for the taxpayer and spouse.

Accepted Answer

A) True 
 B)False

Question 9

A qualifying child does not have to meet the support test in order to be claimed as a dependent.

Accepted Answer

A) True 
 B)False

Question 10

A taxpayer is married with a qualifying child (dependent),but she has been living separate from her spouse for the last five months of the year.However,she paid for more than half of the cost of keeping up the household.Her spouse does not want to file jointly.What filing status must she use when filing her tax return? She wants to obtain the maximum legal benefit.

Accepted Answer

A) Single. 
B) Married Filing Separately. 
C) Qualifying Widow(er). 
D) Head of Household. 
A) Single. 
B) Married Filing Separately. 
C) Qualifying Widow(er). 
D) Head of Household.

Question 11

The basic standard deduction in 2017 for a taxpayer,69 and not blind,filing head of household is:

Accepted Answer

A) $6,350. 
B) $9,350. 
C) $10,850. 
D) $10,900. 
A) $6,350. 
B) $9,350. 
C) $10,850. 
D) $10,900.

Question 12

If a married couple files separate returns and one of them itemizes,the other spouse must also itemize.

Accepted Answer

A) True 
 B)False

Question 13

Peter forgot to file his tax return by April 15.He did not file an extension.Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500.What is Peter's failure to file penalty? Assume he made all his payments on time.

Accepted Answer

A) $875. 
B) $525. 
C) $350. 
D) $700. 
A) $875. 
B) $525. 
C) $350. 
D) $700.

Question 14

The failure to file penalty is ________ of the tax shown on the return for each month (or fraction of a month)the tax return is not filed,up to a maximum of 25%.

Accepted Answer

A) 0)25% 
B) 0)5% 
C) 5)0% 
D) 5)5% 
A) 0)25% 
B) 0)5% 
C) 5)0% 
D) 5)5%

Question 15

A couple who is legally married on the last day of the tax year cannot file married filing separately.

Accepted Answer

A) True 
 B)False

Question 16

Which condition listed below is not required for a taxpayer to qualify as a qualifying widow(er)with dependent child?

Accepted Answer

A) The household was the principal place of abode for the entire year of both the taxpayer and his or her child. 
B) Taxpayer must remarry before the end of the tax year in question. 
C) Taxpayer paid more than half the cost of keeping up a household. 
D) Taxpayer was eligible to file a joint return in the year the spouse died. 
A) The household was the principal place of abode for the entire year of both the taxpayer and his or her child. 
B) Taxpayer must remarry before the end of the tax year in question. 
C) Taxpayer paid more than half the cost of keeping up a household. 
D) Taxpayer was eligible to file a joint return in the year the spouse died.

Question 17

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

Accepted Answer

A) 25% 
B) 75% 
C) 50% 
D) 5% 
A) 25% 
B) 75% 
C) 50% 
D) 5%

Question 18

Even though the taxpayer is claimed as a dependent on another tax return,he or she can still receive an exemption amount for himself or herself when filing his or her tax return.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following items would not be considered as support for a dependency exemption?

Accepted Answer

A) shelter. 
B) life insurance premiums. 
C) medical and dental care. 
D) food. 
A) shelter. 
B) life insurance premiums. 
C) medical and dental care. 
D) food.

Question 20

A 36-year-old taxpayer with a dependent child and claiming head of household status has received $29,000 in alimony payments and earned wages of $44,000.Which is the simplest form this person can file?

Accepted Answer

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

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

The interest charged by the IRS for the first three months of 2017 was:

In 2017,the additional standard deduction for a single taxpayer,who is 65 or older and not blind,is $1,200.

Can the taxpayer avoid the failure to pay on time penalty by just filing an automatic extension to file his or her tax return?

What qualifications are necessary to file as qualifying widow(er)?

To qualify for head of household status,a taxpayer must maintain a household that is the principal place of abode of a qualifying person for more than half the year.

Personal exemptions are for the taxpayer and spouse.

A qualifying child does not have to meet the support test in order to be claimed as a dependent.

The basic standard deduction in 2017 for a taxpayer,69 and not blind,filing head of household is:

If a married couple files separate returns and one of them itemizes,the other spouse must also itemize.

Peter forgot to file his tax return by April 15.He did not file an extension.Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500.What is Peter's failure to file penalty? Assume he made all his payments on time.

The failure to file penalty is ________ of the tax shown on the return for each month (or fraction of a month)the tax return is not filed,up to a maximum of 25%.

A couple who is legally married on the last day of the tax year cannot file married filing separately.

Which condition listed below is not required for a taxpayer to qualify as a qualifying widow(er)with dependent child?

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

Even though the taxpayer is claimed as a dependent on another tax return,he or she can still receive an exemption amount for himself or herself when filing his or her tax return.

Which of the following items would not be considered as support for a dependency exemption?

A 36-year-old taxpayer with a dependent child and claiming head of household status has received $29,000 in alimony payments and earned wages of $44,000.Which is the simplest form this person can file?

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

The tax liability for a head of household taxpayer with taxable income of $124,225 is:

The interest charged by the IRS for the first three months of 2017 was:

In 2017,the additional standard deduction for a single taxpayer,who is 65 or older and not blind,is $1,200.

Can the taxpayer avoid the failure to pay on time penalty by just filing an automatic extension to file his or her tax return?

What qualifications are necessary to file as qualifying widow(er)?

To qualify for head of household status,a taxpayer must maintain a household that is the principal place of abode of a qualifying person for more than half the year.

Personal exemptions are for the taxpayer and spouse.

A qualifying child does not have to meet the support test in order to be claimed as a dependent.

The basic standard deduction in 2017 for a taxpayer,69 and not blind,filing head of household is:

If a married couple files separate returns and one of them itemizes,the other spouse must also itemize.

Peter forgot to file his tax return by April 15.He did not file an extension.Peter finally filed his tax return on July 31 and had a remaining tax liability of $3,500.What is Peter's failure to file penalty? Assume he made all his payments on time.

The failure to file penalty is ________ of the tax shown on the return for each month (or fraction of a month)the tax return is not filed,up to a maximum of 25%.

A couple who is legally married on the last day of the tax year cannot file married filing separately.

Which condition listed below is not required for a taxpayer to qualify as a qualifying widow(er)with dependent child?

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

Even though the taxpayer is claimed as a dependent on another tax return,he or she can still receive an exemption amount for himself or herself when filing his or her tax return.

Which of the following items would not be considered as support for a dependency exemption?

A 36-year-old taxpayer with a dependent child and claiming head of household status has received $29,000 in alimony payments and earned wages of $44,000.Which is the simplest form this person can file?

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