Question 1

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

Accepted Answer

A) The extension of time to file does not extend the time for payment of any tax due. 
B) An individual may receive an automatic extension of the filing date without providing any explanation to the IRS. 
C) The extended due date of a calendar-year individual tax return is October 15 of the following year. 
D) An extension request must be filed before the end of the taxable year. 
A) The extension of time to file does not extend the time for payment of any tax due. 
B) An individual may receive an automatic extension of the filing date without providing any explanation to the IRS. 
C) The extended due date of a calendar-year individual tax return is October 15 of the following year. 
D) An extension request must be filed before the end of the taxable year.

Question 2

Samantha died on January 18,2017.Her husband Dave lived by himself until he remarried in 2018.What was Dave's filing status in 2017 and 2018?

Accepted Answer

A) Married filing jointly in 2017; surviving spouse in 2018. 
B) Married filing jointly in 2017; single in 2018. 
C) Surviving spouse in 2017 and 2018. 
D) Surviving spouse in 2017; single in 2018. 
A) Married filing jointly in 2017; surviving spouse in 2018. 
B) Married filing jointly in 2017; single in 2018. 
C) Surviving spouse in 2017 and 2018. 
D) Surviving spouse in 2017; single in 2018.

Question 3

Bill and Afton are married and file a joint tax return.Bill is 67 and Afton is 66,and neither is legally blind.Their standard deduction for 2017 is $15,200.

Accepted Answer

A) True 
 B)False

Question 4

In determining the standard deduction,which of the following statements is true?

Accepted Answer

A) The standard deduction is a function of filing status. 
B) An individual who is both blind and age 65 by the last day of the taxable year is entitled to one additional standard deduction amount. 
C) An individual who is claimed as a dependent on another person's tax return is not allowed a standard deduction. 
D) The standard deduction for a head of household is twice the standard deduction for a single individual. 
A) The standard deduction is a function of filing status. 
B) An individual who is both blind and age 65 by the last day of the taxable year is entitled to one additional standard deduction amount. 
C) An individual who is claimed as a dependent on another person's tax return is not allowed a standard deduction. 
D) The standard deduction for a head of household is twice the standard deduction for a single individual.

Question 5

Determine Mr.Smith's 2017 filing status in each of the following independent cases.
a.Mr.Smith and Mrs.Smith were legally divorced on December 1.Mr.Smith has not remarried and has no dependent children.
b.Mr.Smith and the first Mrs.Smith were legally divorced on February 10.Mr.Smith remarried the second Mrs.Smith on December 5.He has no dependent children.
c.Mrs.Smith dies on June 22.Mr.Smith has not remarried and has no dependent children.
d.Mrs.Smith died on November 1,2015.Mr.Smith has not remarried and maintains a home for one dependent child.
e.Mrs.Smith died on April 3,2016.Mr.Smith has not remarried and has no dependent children.
f.Mr.and Mrs.Smith were legally divorced on September 10,2014.Mr.Smith has not remarried and maintains a home for his two dependent children.

Accepted Answer

a.Single.b.Married filing join

Question 6

Mr.and Mrs.Arlette spent $5,900 for child care for their 12-year-old daughter.Mr.Arlette's earned income was $178,000,Mrs.Arlette's earned income was $33,100,and the AGI on their joint return was $225,200.Calculate their dependent care credit.

Accepted Answer

A) $5,900 
B) $1,180 
C) $600 
D) $0 
A) $5,900 
B) $1,180 
C) $600 
D) $0

Question 7

Mrs.Lincoln was employed by GGH Inc.until October,when he accepted a new position with Murdock Inc.Mrs.Lincoln earned $145,000 compensation from GGH and $36,000 compensation from Murdock.Which of the following statements is false?

Accepted Answer

A) Murdock must withhold Social Security tax from Mrs.Lincoln's $36,000 compensation. 
B) Murdock must withhold Medicare tax from Mrs.Lincoln's $36,000 compensation. 
C) Mrs.Lincoln is entitled to an income tax credit for both excess Social Security tax and excess Medicare tax withheld by her employers this year. 
D) Both GGH and Murdock must pay the full amount of employer payroll tax on the compensation paid to Mrs.Lincoln. 
A) Murdock must withhold Social Security tax from Mrs.Lincoln's $36,000 compensation. 
B) Murdock must withhold Medicare tax from Mrs.Lincoln's $36,000 compensation. 
C) Mrs.Lincoln is entitled to an income tax credit for both excess Social Security tax and excess Medicare tax withheld by her employers this year. 
D) Both GGH and Murdock must pay the full amount of employer payroll tax on the compensation paid to Mrs.Lincoln.

Question 8

Which of the following statements regarding a qualifying child is false?

Accepted Answer

A) The child must have been alive at least 180 days during the tax year. 
B) The child must be a U.S.citizen or resident of the United States,Canada,or Mexico. 
C) The child must not have provided more than 50% of his or her own financial support during the year. 
D) The child must not have filed a joint return with a spouse unless the return was filed only as a refund claim. 
A) The child must have been alive at least 180 days during the tax year. 
B) The child must be a U.S.citizen or resident of the United States,Canada,or Mexico. 
C) The child must not have provided more than 50% of his or her own financial support during the year. 
D) The child must not have filed a joint return with a spouse unless the return was filed only as a refund claim.

Question 9

An above-the-line deduction reduces both adjusted gross income and taxable income.

Accepted Answer

A) True 
 B)False

Question 10

Lennie and Margo spent $2,800 for child care for their 7-year-old son.Lennie's earned income was $41,000,Margo's earned income was $24,800,and the AGI on their joint return was $71,200.Calculate their dependent care credit.

Accepted Answer

A) $0 
B) $560 
C) $980 
D) $2,800 
A) $0 
B) $560 
C) $980 
D) $2,800

Question 11

Harry and Sally were married on December 23,2017.Their income for the entire year is reported on a joint return.

Accepted Answer

A) True 
 B)False

Question 12

Ruth Anne,a single taxpayer,reported $152,600 alternative minimum taxable income before any exemption on her 2017 Form 1040.Calculate Ruth Anne's AMT exemption.

Accepted Answer

A) $7,975 
B) $45,675 
C) $53,900 
D) None of the above 
A) $7,975 
B) $45,675 
C) $53,900 
D) None of the above

Question 13

Ms.Kilo's regular income tax before credits on her Form 1040 is $45,890,and she has a $5,700 minimum tax credit from a previous year.Which of the following statements is true?

Accepted Answer

A) If Ms.Kilo's tentative minimum tax is $50,500,her total tax liability is $44,800. 
B) If Ms.Kilo's tentative minimum tax is $42,400,her total tax liability is $40,190. 
C) If Ms.Kilo's tentative minimum tax is $42,400,her total tax liability is $42,400. 
D) Both A.and C.are true. 
A) If Ms.Kilo's tentative minimum tax is $50,500,her total tax liability is $44,800. 
B) If Ms.Kilo's tentative minimum tax is $42,400,her total tax liability is $40,190. 
C) If Ms.Kilo's tentative minimum tax is $42,400,her total tax liability is $42,400. 
D) Both A.and C.are true.

Question 14

Which of the following statements describing individual tax deductions is false?

Accepted Answer

A) Individuals can take both above-the-line and the standard deduction in the same year. 
B) Individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the standard deduction. 
C) In a year in which an individual takes the standard deduction,any itemized deductions yield no tax benefit. 
D) Individuals who pay self-employment tax can deduct the tax as an itemized deduction. 
A) Individuals can take both above-the-line and the standard deduction in the same year. 
B) Individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the standard deduction. 
C) In a year in which an individual takes the standard deduction,any itemized deductions yield no tax benefit. 
D) Individuals who pay self-employment tax can deduct the tax as an itemized deduction.

Question 15

In computing taxable income,an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

Accepted Answer

A) True 
 B)False

Question 16

For the taxable year in which a married person dies,the widow or widower can file a joint return with the deceased.

Accepted Answer

A) True 
 B)False

Question 17

Alice is an unmarried individual.She has $182,340 taxable income in 2017.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 $44,037; head of household $39,892 
B) Single $60,172; head of household $41,372 
C) Single $44,037; head of household $41,372 
D) None of the above 
A) Single $44,037; head of household $39,892 
B) Single $60,172; head of household $41,372 
C) Single $44,037; head of household $41,372 
D) None of the above

Question 18

Which of the following statements concerning the overall limitation on itemized deductions is true?

Accepted Answer

A) The limitation can reduce a taxpayer's total itemized deductions to zero. 
B) The limitation has no effect on a taxpayer's standard deduction. 
C) The limitation applies only to taxpayers with a 39.6% marginal income tax rate. 
D) Statements A.,B.,and C.are false. 
A) The limitation can reduce a taxpayer's total itemized deductions to zero. 
B) The limitation has no effect on a taxpayer's standard deduction. 
C) The limitation applies only to taxpayers with a 39.6% marginal income tax rate. 
D) Statements A.,B.,and C.are false.

Question 19

Ms.Dorley's regular tax liability on her Form 1040 is $45,890.Which of the following statements is true?

Accepted Answer

A) If Ms.Dorley's tentative minimum tax is $50,700,her total tax liability is $97,590. 
B) If Ms.Dorley's AMT is $6,380,her total tax liability is $52,270. 
C) If Ms.Dorley's AMT is $10,112,her total tax liability is $45,890. 
D) If Ms.Dorley's tentative minimum tax is $38,682,her total tax liability is $38,682. 
A) If Ms.Dorley's tentative minimum tax is $50,700,her total tax liability is $97,590. 
B) If Ms.Dorley's AMT is $6,380,her total tax liability is $52,270. 
C) If Ms.Dorley's AMT is $10,112,her total tax liability is $45,890. 
D) If Ms.Dorley's tentative minimum tax is $38,682,her total tax liability is $38,682.

Question 20

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

Accepted Answer

A) True 
 B)False

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

Samantha died on January 18,2017.Her husband Dave lived by himself until he remarried in 2018.What was Dave's filing status in 2017 and 2018?

Bill and Afton are married and file a joint tax return.Bill is 67 and Afton is 66,and neither is legally blind.Their standard deduction for 2017 is $15,200.

In determining the standard deduction,which of the following statements is true?

Mr.and Mrs.Arlette spent $5,900 for child care for their 12-year-old daughter.Mr.Arlette's earned income was $178,000,Mrs.Arlette's earned income was $33,100,and the AGI on their joint return was $225,200.Calculate their dependent care credit.

Mrs.Lincoln was employed by GGH Inc.until October,when he accepted a new position with Murdock Inc.Mrs.Lincoln earned $145,000 compensation from GGH and $36,000 compensation from Murdock.Which of the following statements is false?

Which of the following statements regarding a qualifying child is false?

An above-the-line deduction reduces both adjusted gross income and taxable income.

Lennie and Margo spent $2,800 for child care for their 7-year-old son.Lennie's earned income was $41,000,Margo's earned income was $24,800,and the AGI on their joint return was $71,200.Calculate their dependent care credit.

Harry and Sally were married on December 23,2017.Their income for the entire year is reported on a joint return.

Ruth Anne,a single taxpayer,reported $152,600 alternative minimum taxable income before any exemption on her 2017 Form 1040.Calculate Ruth Anne's AMT exemption.

Ms.Kilo's regular income tax before credits on her Form 1040 is $45,890,and she has a $5,700 minimum tax credit from a previous year.Which of the following statements is true?

Which of the following statements describing individual tax deductions is false?

In computing taxable income,an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

For the taxable year in which a married person dies,the widow or widower can file a joint return with the deceased.

Alice is an unmarried individual.She has $182,340 taxable income in 2017.Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Which of the following statements concerning the overall limitation on itemized deductions is true?

Ms.Dorley's regular tax liability on her Form 1040 is $45,890.Which of the following statements is true?

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

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, Partnerships, llcs, and S Corporations

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

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Exam 14: The Individual Tax Formula

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

Samantha died on January 18,2017.Her husband Dave lived by himself until he remarried in 2018.What was Dave's filing status in 2017 and 2018?

Bill and Afton are married and file a joint tax return.Bill is 67 and Afton is 66,and neither is legally blind.Their standard deduction for 2017 is $15,200.

In determining the standard deduction,which of the following statements is true?

Mr.and Mrs.Arlette spent $5,900 for child care for their 12-year-old daughter.Mr.Arlette's earned income was $178,000,Mrs.Arlette's earned income was $33,100,and the AGI on their joint return was $225,200.Calculate their dependent care credit.

Mrs.Lincoln was employed by GGH Inc.until October,when he accepted a new position with Murdock Inc.Mrs.Lincoln earned $145,000 compensation from GGH and $36,000 compensation from Murdock.Which of the following statements is false?

Which of the following statements regarding a qualifying child is false?

An above-the-line deduction reduces both adjusted gross income and taxable income.

Lennie and Margo spent $2,800 for child care for their 7-year-old son.Lennie's earned income was $41,000,Margo's earned income was $24,800,and the AGI on their joint return was $71,200.Calculate their dependent care credit.

Harry and Sally were married on December 23,2017.Their income for the entire year is reported on a joint return.

Ruth Anne,a single taxpayer,reported $152,600 alternative minimum taxable income before any exemption on her 2017 Form 1040.Calculate Ruth Anne's AMT exemption.

Ms.Kilo's regular income tax before credits on her Form 1040 is $45,890,and she has a $5,700 minimum tax credit from a previous year.Which of the following statements is true?

Which of the following statements describing individual tax deductions is false?

In computing taxable income,an individual is allowed to deduct both the standard deduction and any itemized deduction for the year.

For the taxable year in which a married person dies,the widow or widower can file a joint return with the deceased.

Alice is an unmarried individual.She has $182,340 taxable income in 2017.Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Which of the following statements concerning the overall limitation on itemized deductions is true?

Ms.Dorley's regular tax liability on her Form 1040 is $45,890.Which of the following statements is true?

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

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, Partnerships, llcs, and S Corporations

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