Question 1

Married individuals who elect to file separate tax returns may use the single rates to compute their tax.

Accepted Answer

A) True 
 B)False

Question 2

Mr. and Mrs. Upton's marginal tax rate on their joint return is 33%. This year, their itemized deductions totaled $13,800, and their standard deduction (MFJ) was $12,600. Compute their incremental tax savings from their itemized deductions.

Accepted Answer

A)  $0 
B)  $396 
C)  $4,158 
D)  $4,554 
A)  $0 
B)  $396 
C)  $4,158 
D)  $4,554

Question 3

Mr. and Mrs. Eller's AGI last year was $287,300, and their total tax was $70,268. The couple's safe-harbor estimate of current year tax is $77,295.

Accepted Answer

A) True 
 B)False

Question 4

The earned income credit offsets the burden of the federal payroll tax on low-income families and encourages individuals to seek employment rather than to depend on welfare.

Accepted Answer

A) True 
 B)False

Question 5

The unextended due date for the individual tax return (Form 1040) is the 15th day of the third month following the close of the taxable year.

Accepted Answer

A) True 
 B)False

Question 6

Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If the taxable income on their return is $55,300, they are not paying a marriage penalty.

Accepted Answer

A) True 
 B)False

Question 7

Mr. and Mrs. Kay, ages 68 and 66, file a joint return. Mrs. Kay is legally blind. Compute their standard deduction.

Accepted Answer

A)  $12,600 
B)  $16,350 
C)  $15,100 
D)  $17,250 
A)  $12,600 
B)  $16,350 
C)  $15,100 
D)  $17,250

Question 8

Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $510 from babysitting and $220 interest income from a savings account. Compute Melissa's standard deduction.

Accepted Answer

A)  $730 
B)  $860 
C)  $510 
D)  $1,050 
A)  $730 
B)  $860 
C)  $510 
D)  $1,050

Question 9

The majority of individual taxpayers take the standard deduction rather than itemizing.

Accepted Answer

A) True 
 B)False

Question 10

Bill and Afton are married and file a joint tax return. Bill is 67 and Afton is 66, and neither is legally blind. Their standard deduction for 2016 is $15,100.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements regarding filing status is false?

Accepted Answer

A)  A widow or widower maintaining a home for a dependent child qualifies as surviving spouse for two tax years following the year of the spouse's death. 
B)  Marital status for tax purposes is determined on the last day of the year. 
C)  Any unmarried individual with a dependent child qualifies as head of household. 
D)  An unmarried individual without children or other dependents files as a single taxpayer. 
A)  A widow or widower maintaining a home for a dependent child qualifies as surviving spouse for two tax years following the year of the spouse's death. 
B)  Marital status for tax purposes is determined on the last day of the year. 
C)  Any unmarried individual with a dependent child qualifies as head of household. 
D)  An unmarried individual without children or other dependents files as a single taxpayer.

Question 12

Marie, an unmarried taxpayer, is 26 years old. This year, Marie earned $50,000 gross income. Her itemized deductions totaled $5,100. Marie maintained a home for her 12-year-old sister who qualifies as Marie's dependent. Compute Marie's taxable income.

Accepted Answer

A)  $40,900 
B)  $32,750 
C)  $36,900 
D)  None of the above 
A)  $40,900 
B)  $32,750 
C)  $36,900 
D)  None of the above

Question 13

A husband and wife are allowed only one exemption on a jointly filed return.

Accepted Answer

A) True 
 B)False

Married individuals who elect to file separate tax returns may use the single rates to compute their tax.

Mr. and Mrs. Upton's marginal tax rate on their joint return is 33%. This year, their itemized deductions totaled $13,800, and their standard deduction (MFJ) was $12,600. Compute their incremental tax savings from their itemized deductions.

Mr. and Mrs. Eller's AGI last year was $287,300, and their total tax was $70,268. The couple's safe-harbor estimate of current year tax is $77,295.

The earned income credit offsets the burden of the federal payroll tax on low-income families and encourages individuals to seek employment rather than to depend on welfare.

The unextended due date for the individual tax return (Form 1040) is the 15^th day of the third month following the close of the taxable year.

Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If the taxable income on their return is $55,300, they are not paying a marriage penalty.

Mr. and Mrs. Kay, ages 68 and 66, file a joint return. Mrs. Kay is legally blind. Compute their standard deduction.

Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $510 from babysitting and $220 interest income from a savings account. Compute Melissa's standard deduction.

The majority of individual taxpayers take the standard deduction rather than itemizing.

Bill and Afton are married and file a joint tax return. Bill is 67 and Afton is 66, and neither is legally blind. Their standard deduction for 2016 is $15,100.

Which of the following statements regarding filing status is false?

Marie, an unmarried taxpayer, is 26 years old. This year, Marie earned $50,000 gross income. Her itemized deductions totaled $5,100. Marie maintained a home for her 12-year-old sister who qualifies as Marie's dependent. Compute Marie's taxable income.

A husband and wife are allowed only one exemption on a jointly filed return.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 14: The Individual Tax Formula

Married individuals who elect to file separate tax returns may use the single rates to compute their tax.

Mr. and Mrs. Upton's marginal tax rate on their joint return is 33%. This year, their itemized deductions totaled $13,800, and their standard deduction (MFJ) was $12,600. Compute their incremental tax savings from their itemized deductions.

Mr. and Mrs. Eller's AGI last year was $287,300, and their total tax was $70,268. The couple's safe-harbor estimate of current year tax is $77,295.

The earned income credit offsets the burden of the federal payroll tax on low-income families and encourages individuals to seek employment rather than to depend on welfare.

The unextended due date for the individual tax return (Form 1040) is the 15th day of the third month following the close of the taxable year.

Mr. and Mrs. Kline file a joint return on which they claim the standard deduction and two exemptions. If the taxable income on their return is $55,300, they are not paying a marriage penalty.

Mr. and Mrs. Kay, ages 68 and 66, file a joint return. Mrs. Kay is legally blind. Compute their standard deduction.

Melissa, age 16, is claimed as a dependent on her parents' tax return. This year, Melissa earned $510 from babysitting and $220 interest income from a savings account. Compute Melissa's standard deduction.

The majority of individual taxpayers take the standard deduction rather than itemizing.

Bill and Afton are married and file a joint tax return. Bill is 67 and Afton is 66, and neither is legally blind. Their standard deduction for 2016 is $15,100.

Which of the following statements regarding filing status is false?

Marie, an unmarried taxpayer, is 26 years old. This year, Marie earned $50,000 gross income. Her itemized deductions totaled $5,100. Marie maintained a home for her 12-year-old sister who qualifies as Marie's dependent. Compute Marie's taxable income.

A husband and wife are allowed only one exemption on a jointly filed return.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

The unextended due date for the individual tax return (Form 1040) is the 15^th day of the third month following the close of the taxable year.