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

What is the amount of the standard deduction for Evelyn who is a full-time student and claimed as a dependent by her parents? She earned $2,700 in wages in 2014.

Lisa is 21 years of age and a full-time student living with her parents.She had wages of $680 ($70 of income tax withholding)for 2014.Can Lisa claim her exemption on her return even though her parents will claim her as a dependent on their tax return?

What is the amount of the personal and dependency exemption for 2014?

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

Can the taxpayer avoid the failure to pay on time penalty by just filing an automatic extension to file his or her tax return? A taxpayer can file an automatic six-month extension of time to file his or her tax return,but this extension will not extend the time to pay the applicable tax.If the taxpayer filing an extension determines that he or she owes additional tax,the payment must accompany the extension request (Form 4868).

What is the amount of the tax liability for a married couple having taxable income of $96,843? All answers should be rounded to the nearest dollar.

The basic standard deduction in 2014 for a single taxpayer who is 67 years old and not blind is:

The IRS can impose a ________ penalty on the tax due on a return where there is negligence.

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

What is the amount of the social security wage limitation for 2014?

A taxpayer may request an automatic seven-month extension of time to file his or her tax return.

Which amount represents the standard deduction for a taxpayer who is single and 68 years of age?

A qualifying relative must be related to the taxpayer (as listed by the IRS),or be a member of the taxpayer's household for the entire year.

The taxpayer's spouse died at the beginning of 2014.He has no qualifying child.Which status should the taxpayer select when filing his tax return?

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.

What is the amount of the tax liability for a head of household person having taxable income of $122,500? All answers should be rounded to the nearest dollar.

A married couple in the process of obtaining a divorce cannot file a joint tax return.

David and Martha were divorced on December 31,2014.Can they file their 2014 income tax return using married filing jointly? Why or Why not? What other filing status choices do they have,if any?

The basic standard deduction in 2014 for a Head of Household taxpayer who is 41 years old and not blind is:

The taxpayer's brother must live with the taxpayer for the entire year to meet the relationship or member of household test under qualifying relatives.