Question 1

The early withdrawal penalty is a for AGI deduction.Which form can the taxpayer use to claim this benefit?

Accepted Answer

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

Question 2

The standard deduction in 2014 for a married couple,under 65 and not blind,is $12,400.

Accepted Answer

A) True 
 B)False

Question 3

Robin's parents can claim him as a dependent on their tax return.In 2014,his only source of income was a part-time job as a supermarket clerk where he earned $3,200 during the year.What is Robin's standard deduction?

Accepted Answer

A)  $1,000. 
B)  $3,550. 
C)  $3,200. 
D)  $6,200. 
A)  $1,000. 
B)  $3,550. 
C)  $3,200. 
D)  $6,200.

Question 4

On December 31,2014,a taxpayer received the notification that he was legally divorced.However,he lived with his spouse for 8 months during 2014.He has no dependent children.What status should he select when filing his tax return for 2014?

Accepted Answer

A)  Married Filing Separately. 
B)  Head of Household. 
C)  Married Filing Jointly. 
D)  Single. 
A)  Married Filing Separately. 
B)  Head of Household. 
C)  Married Filing Jointly. 
D)  Single.

Question 5

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.What are the three general tests?

Accepted Answer

A)  Relationship test,residency test and gross income test. 
B)  Support test,age test and relationship test. 
C)  Dependent taxpayer test,relationship test and citizen or resident test. 
D)  Dependent taxpayer test,joint return test and citizen or resident test. 
A)  Relationship test,residency test and gross income test. 
B)  Support test,age test and relationship test. 
C)  Dependent taxpayer test,relationship test and citizen or resident test. 
D)  Dependent taxpayer test,joint return test and citizen or resident test.

Question 6

List and describe the four tests that a person must meet to qualify as a qualifying relative.

Accepted Answer

To be a qualifying relative,the person m

Question 7

The taxpayer must provide over ________ of the qualifying relative's support to be able to claim a dependency exemption.

Accepted Answer

A)  49% 
B)  50% 
C)  51% 
D)  75% 
A)  49% 
B)  50% 
C)  51% 
D)  75%

Question 8

What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar.

Accepted Answer

A)  $10,656. 
B)  $9,100. 
C)  $10,663. 
D)  $14,800. 
A)  $10,656. 
B)  $9,100. 
C)  $10,663. 
D)  $14,800.

Question 9

Criminal penalties only apply to:

Accepted Answer

A)  Careless disregard for tax authority. 
B)  Willful failure to file a return. 
C)  Tax evasion. 
D)  Willful failure to file a return and tax evasion. 
A)  Careless disregard for tax authority. 
B)  Willful failure to file a return. 
C)  Tax evasion. 
D)  Willful failure to file a return and tax evasion.

Question 10

What is the amount of the tax liability for a married couple having taxable income of $153,500? All answers should be rounded to the nearest dollar.

Accepted Answer

A)  $38,375. 
B)  $30,227. 
C)  $30,233. 
D)  $23,025. 
A)  $38,375. 
B)  $30,227. 
C)  $30,233. 
D)  $23,025.

Question 11

If a taxpayer's spouse dies during the tax year,the taxpayer must file as a qualifying widow(er).

Accepted Answer

A) True 
 B)False

Question 12

The basic standard deduction in 2014 for a single taxpayer,under 65 and not blind,is:

Accepted Answer

A)  $6,100. 
B)  $3,950. 
C)  $9,100. 
D)  $6,200. 
A)  $6,100. 
B)  $3,950. 
C)  $9,100. 
D)  $6,200.

Question 13

Can Erick,who is a full-time student and earns $1,575 working as a clerk,claim an exemption for himself on his tax return? Assume his parents are claiming him as a dependent.

Accepted Answer

No.If a taxpayer is claimed as

Question 14

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%

Question 15

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

Accepted Answer

The qualifications necessary to file as

Question 16

The basic standard deduction in 2014 for a taxpayer,67 and not blind,filing head of household is:

Accepted Answer

A)  $10,650. 
B)  $7,400. 
C)  $1,550. 
D)  $9,100. 
A)  $10,650. 
B)  $7,400. 
C)  $1,550. 
D)  $9,100.

Question 17

In 2014,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 18

Taxable income (TI)is computed after subtracting from adjusted gross income (AGI),the standard deduction or itemized deductions and personal and dependency exemptions.

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)  medical insurance premiums. 
B)  food. 
C)  clothing. 
D)  life insurance premiums. 
A)  medical insurance premiums. 
B)  food. 
C)  clothing. 
D)  life insurance premiums.

Question 20

The interest charged by the IRS for the first three months of 2014 was:

Accepted Answer

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

The early withdrawal penalty is a for AGI deduction.Which form can the taxpayer use to claim this benefit?

The standard deduction in 2014 for a married couple,under 65 and not blind,is $12,400.

Robin's parents can claim him as a dependent on their tax return.In 2014,his only source of income was a part-time job as a supermarket clerk where he earned $3,200 during the year.What is Robin's standard deduction?

On December 31,2014,a taxpayer received the notification that he was legally divorced.However,he lived with his spouse for 8 months during 2014.He has no dependent children.What status should he select when filing his tax return for 2014?

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.What are the three general tests?

List and describe the four tests that a person must meet to qualify as a qualifying relative.

The taxpayer must provide over ________ of the qualifying relative's support to be able to claim a dependency exemption.

What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar.

Criminal penalties only apply to:

What is the amount of the tax liability for a married couple having taxable income of $153,500? All answers should be rounded to the nearest dollar.

If a taxpayer's spouse dies during the tax year,the taxpayer must file as a qualifying widow(er).

The basic standard deduction in 2014 for a single taxpayer,under 65 and not blind,is:

Can Erick,who is a full-time student and earns $1,575 working as a clerk,claim an exemption for himself on his tax return? Assume his parents are claiming him as a dependent.

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

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

The basic standard deduction in 2014 for a taxpayer,67 and not blind,filing head of household is:

In 2014,the additional standard deduction for a single taxpayer,who is 65 or older and not blind,is $1,200.

Taxable income (TI)is computed after subtracting from adjusted gross income (AGI),the standard deduction or itemized deductions and personal and dependency exemptions.

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

The interest charged by the IRS for the first three months of 2014 was:

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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 early withdrawal penalty is a for AGI deduction.Which form can the taxpayer use to claim this benefit?

The standard deduction in 2014 for a married couple,under 65 and not blind,is $12,400.

Robin's parents can claim him as a dependent on their tax return.In 2014,his only source of income was a part-time job as a supermarket clerk where he earned $3,200 during the year.What is Robin's standard deduction?

On December 31,2014,a taxpayer received the notification that he was legally divorced.However,he lived with his spouse for 8 months during 2014.He has no dependent children.What status should he select when filing his tax return for 2014?

To be a qualifying child,the taxpayer must meet three general tests and five specific tests.What are the three general tests?

List and describe the four tests that a person must meet to qualify as a qualifying relative.

The taxpayer must provide over ________ of the qualifying relative's support to be able to claim a dependency exemption.

What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar.

Criminal penalties only apply to:

What is the amount of the tax liability for a married couple having taxable income of $153,500? All answers should be rounded to the nearest dollar.

If a taxpayer's spouse dies during the tax year,the taxpayer must file as a qualifying widow(er).

The basic standard deduction in 2014 for a single taxpayer,under 65 and not blind,is:

Can Erick,who is a full-time student and earns $1,575 working as a clerk,claim an exemption for himself on his tax return? Assume his parents are claiming him as a dependent.

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

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

The basic standard deduction in 2014 for a taxpayer,67 and not blind,filing head of household is:

In 2014,the additional standard deduction for a single taxpayer,who is 65 or older and not blind,is $1,200.

Taxable income (TI)is computed after subtracting from adjusted gross income (AGI),the standard deduction or itemized deductions and personal and dependency exemptions.

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

The interest charged by the IRS for the first three months of 2014 was:

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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