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

Robert,Fred and Lucas are supporting their mother who lives in a separate apartment.Their contributions towards her support are 10%,40% and 50%,respectively.In a multiple support agreement,who would be entitled to claim the mother as a dependent?

Mirtha is 21 years of age and a full-time student living by herself.She had wages of $23,000 for 2014.Can Mirtha claim the exemption for herself on her tax return?

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.

What is the amount of the tax liability for a qualifying widow(er)with a dependent child and having taxable income of $18,355? All answers should be rounded to the nearest dollar.

A taxpayer can claim a dependency exemption if the person is a qualifying child or a qualifying relative and the person meets three tests.List the three tests this person must meet.

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

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?

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

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 part of the four specific tests?

For tax purposes,marital status is determined as of the __________ day of the year.

A taxpayer can be claimed as a dependent on another return and still he or she can claim a personal exemption on his or her tax return.

A married couple can file a joint return only if both have earned income.

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?

The tax code defines adjusted gross income (AGI)as gross income minus a list of permitted deductions.

The personal exemption for 2014 is $3,950.

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

The amount of tax liability for a taxpayer depends on many factors,including the filing status of the taxpayer.

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.

To be claimed as a dependent,a person must be a qualifying child or a qualifying relative.