Exam 2: Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2014. 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.

A taxpayer who has income that is not subject to withholding is never required to make estimated payments during the year.

A taxpayer who either is 65 or older or blind can claim an additional standard deduction.

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

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.

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

The additional standard deduction amount for a taxpayer who is 65,single and blind is:

Marital status of a taxpayer is determined on the last day of the tax year.

What is the simplest tax return form a taxpayer should file if he or she has only $41,000 in wages and is claiming head of household with a dependent child?

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

A single taxpayer is 43 years old and has wages only of $16,000.Which is the simplest form this person can file?

A taxpayer can qualify for head of household even though his or her parents are living in a separate household from that of the taxpayer (assume all other requirements are met).

What was the amount of the personal exemption for 2014?

Why is the concept of "Adjusted Gross Income (AGI)" important?

A taxpayer can deduct a(an)__________ amount from AGI for each dependent.

A single taxpayer is 35 years old and has only wages of $14,000.Which is the simplest form this person can file?

The accuracy-related penalty applies when negligence or any substantial understatement occurs.

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

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.