Question 1

Which of the following statements regarding tax payments is true?

Accepted Answer

A)  Sole proprietors must make quarterly estimated payments of income tax, but self-employment tax is not due until the return is filed. 
B)  Sole proprietors must make quarterly estimated payments of self-employment tax, but income tax is not due until the return is filed. 
C)  Sole proprietors must make quarterly estimated payments of income tax and self-employment tax. 
D)  Sole proprietors are not required to pay income tax or self-employment tax until the return is filed. 
A)  Sole proprietors must make quarterly estimated payments of income tax, but self-employment tax is not due until the return is filed. 
B)  Sole proprietors must make quarterly estimated payments of self-employment tax, but income tax is not due until the return is filed. 
C)  Sole proprietors must make quarterly estimated payments of income tax and self-employment tax. 
D)  Sole proprietors are not required to pay income tax or self-employment tax until the return is filed.

Question 2

Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2012. Compute his regular tax liability.

Accepted Answer

A)  $103,295 
B)  $112,684 
C)  $118,767 
D)  None of the above 
A)  $103,295 
B)  $112,684 
C)  $118,767 
D)  None of the above

Question 3

Which of the following statements concerning extensions of time to file an individual tax return is false?

Accepted Answer

A)  The extension of time to file does not extend the time for payment of any tax due. 
B)  An individual may receive an automatic extension of the filing date without providing any explanation to the IRS. 
C)  The extended due date of a calendar-year individual tax return is October 15 of the following year. 
D)  An extension request must be filed before the end of the taxable year. 
A)  The extension of time to file does not extend the time for payment of any tax due. 
B)  An individual may receive an automatic extension of the filing date without providing any explanation to the IRS. 
C)  The extended due date of a calendar-year individual tax return is October 15 of the following year. 
D)  An extension request must be filed before the end of the taxable year.

Question 4

Jay Blount, 26-years old and a full time student, lives in his parents' home. Although Jay earned $8,400 from a part-time job, his parents provide at least 75% of his financial support. Jay's parents may claim him as a dependent this year.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements concerning extensions of time to file an individual tax return is true?

Accepted Answer

A)  The extension of time to file does not extend the time for payment of tax. 
B)  The extension of time to file is for four months. 
C)  An individual who requests an extension of time to file must provide the IRS with a reasonable explanation. 
D)  The IRS may deny an extension request if the taxpayer fails to provide a reasonable explanation. 
A)  The extension of time to file does not extend the time for payment of tax. 
B)  The extension of time to file is for four months. 
C)  An individual who requests an extension of time to file must provide the IRS with a reasonable explanation. 
D)  The IRS may deny an extension request if the taxpayer fails to provide a reasonable explanation.

Question 6

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 7

Alice is an unmarried individual. She has $182,340 taxable income in 2012. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

Accepted Answer

A)  Single $41,827; head of household $39,892 
B)  Single $60,172; head of household $51,055 
C)  Single $44,700; head of household $42,031 
D)  None of the above 
A)  Single $41,827; head of household $39,892 
B)  Single $60,172; head of household $51,055 
C)  Single $44,700; head of household $42,031 
D)  None of the above

Question 8

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

Accepted Answer

A) True 
 B)False

Question 9

Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in 2012, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

Accepted Answer

A)  $6,370 
B)  $5,698 
C)  $4,900 
D)  None of the above. 
A)  $6,370 
B)  $5,698 
C)  $4,900 
D)  None of the above.

Question 10

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.

Accepted Answer

A) True 
 B)False

Question 11

An itemized deduction doesn't result in any tax savings in a year in which an individual taxpayer takes the standard deduction.

Accepted Answer

A) True 
 B)False

Which of the following statements regarding tax payments is true?

Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2012. Compute his regular tax liability.

Which of the following statements concerning extensions of time to file an individual tax return is false?

Jay Blount, 26-years old and a full time student, lives in his parents' home. Although Jay earned $8,400 from a part-time job, his parents provide at least 75% of his financial support. Jay's parents may claim him as a dependent this year.

Which of the following statements concerning extensions of time to file an individual tax return is true?

Which of the following statements regarding filing status is false?

Alice is an unmarried individual. She has $182,340 taxable income in 2012. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in 2012, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.

An itemized deduction doesn't result in any tax savings in a year in which an individual taxpayer takes the standard deduction.

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

Which of the following statements regarding tax payments is true?

Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2012. Compute his regular tax liability.

Which of the following statements concerning extensions of time to file an individual tax return is false?

Jay Blount, 26-years old and a full time student, lives in his parents' home. Although Jay earned $8,400 from a part-time job, his parents provide at least 75% of his financial support. Jay's parents may claim him as a dependent this year.

Which of the following statements concerning extensions of time to file an individual tax return is true?

Which of the following statements regarding filing status is false?

Alice is an unmarried individual. She has $182,340 taxable income in 2012. Compute Alice's regular tax liability if she files as a single taxpayer and if she files as a head of household.

The standard deduction and exemption amount are not deductible in the computation of alternative minimum taxable income.

Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in 2012, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

An individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions and the exemption amount.

An itemized deduction doesn't result in any tax savings in a year in which an individual taxpayer takes the standard deduction.

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