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

When a taxpayer's AGI exceeds certain levels,certain tax benefits are reduced or eliminated.

The taxpayer's spouse died at the beginning of 2013.He has no qualifying child.Which status should the taxpayer select when filing his tax return for 2014?

Most taxpayers make payments to the IRS through income tax withholdings and quarterly estimated tax payments.

What is the amount of the tax liability for a married person filing a separate return and having taxable income of $115,715? All answers should be rounded to the nearest dollar.

The IRS can impose a 75% penalty on any portion of understatement of tax that is attributable to negligence.

Even if the total of the itemized deductions is lower than the standard deduction,a taxpayer should choose to itemize on his or her tax return.

Failure to make required estimated payments will subject the taxpayer to a potential underpayment penalty plus interest.However,if the difference between the tax shown on the return and the amount of tax withheld for wages is less than ______,the taxpayer will not be assessed a penalty.

A qualifying relative must earn less than $______ for the year 2014.

A legally divorced taxpayer maintains a household for himself and maintains a separate household that is the principal place of abode of his dependent widowed mother.What filing status should he use when filing his tax return?

Ed's parents can claim him as a dependent on their tax return.In 2014,his only source of income was $1,050 of interest income received from Global Bank.What is Ed's standard deduction?

How many personal exemptions can the taxpayer claim? What is the amount of the personal exemption for 2014?

A taxpayer is married with a qualifying child (dependent),but she has been living separate from her spouse for the last five months of the year.However,she paid for more than half of the cost of keeping up the household.Her spouse does not want to file jointly.What filing status must she use when filing her tax return? She wants to obtain the maximum legal benefit.

Jane,Joseph and John are supporting their father who lives in a separate apartment.Their contribution towards his support is 10%,35% and 55%,respectively.In a multiple support agreement,who would be entitled to claim the father as a dependent?

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

Severin,who is 20 years old and a full-time student,is claimed by his parent as a dependent.However,in 2014,he earned $5,400.What is the amount of the personal exemption that he can claim on his tax return?

List and describe the five tests that a person must meet to qualify as a qualifying child.

George is 21 years of age and a full-time student living with his parents.He had wages of $1,350 ($130 of income tax withholding)for 2014.Can George claim his exemption on his return even though his parents will claim him as a dependent on their tax return?

The basic standard deduction in 2014 for a taxpayer,69 and not blind,filing head of household is:

What is the amount of the tax liability for a single person having taxable income of $55,300? All answers should be rounded to the nearest dollar.

What is the amount of the tax liability for a head of household person having taxable income of $87,573? All answers should be rounded to the nearest dollar.