Question 1

An above-the-line deduction reduces both adjusted gross income and taxable income.

Accepted Answer

A) True 
 B)False

Question 2

An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

Accepted Answer

A) True 
 B)False

Question 3

Mr. and Mrs. Luang reported $517,900 ordinary taxable income for regular tax purposes and had $39,100 positive AMT adjustments and preferences. Compute their tentative minimum tax.

Accepted Answer

A) $152,370 
B) $155,960 
C) $144,820 
D) None of the above 
A) $152,370 
B) $155,960 
C) $144,820 
D) None of the above

Question 4

Mr. and Mrs. King's regular tax liability on their joint return was $111,850. Which of the following statements is true?

Accepted Answer

A) If the Kings' tentative minimum tax is $103,300, their total tax liability is $103,300. 
B) If the Kings' tentative minimum tax is $103,300, their total tax liability is $111,850. 
C) If the Kings' tentative minimum tax is $143,800; their total tax liability is $143,800. 
D) Both b.and c.are true. 
A) If the Kings' tentative minimum tax is $103,300, their total tax liability is $103,300. 
B) If the Kings' tentative minimum tax is $103,300, their total tax liability is $111,850. 
C) If the Kings' tentative minimum tax is $143,800; their total tax liability is $143,800. 
D) Both b.and c.are true.

Question 5

A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements concerning the overall limitation on itemized deductions is true?

Accepted Answer

A) The limitation has no effect on a taxpayer's standard deduction. 
B) The limitation can reduce a taxpayer's total itemized deductions to zero. 
C) The limitation applies only to taxpayers with a 39.6% marginal income tax rate. 
D) Statements A, B, and C are false. 
A) The limitation has no effect on a taxpayer's standard deduction. 
B) The limitation can reduce a taxpayer's total itemized deductions to zero. 
C) The limitation applies only to taxpayers with a 39.6% marginal income tax rate. 
D) Statements A, B, and C are false.

Question 7

The earned income credit is available only to low-income taxpayers with dependent children.

Accepted Answer

A) True 
 B)False

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) $1,000 
A) $730 
B) $860 
C) $510 
D) $1,000

Question 9

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 10

Mrs. Paley died on July 14, 2012. Her husband has not remarried. The Paleys' two children, ages 34 and 36, are financially independent. Mr. Paley may file as a surviving spouse in 2013 and 2014.

Accepted Answer

A) True 
 B)False

Question 11

Alice Grim, a single taxpayer, has $219,000 taxable income, which includes a $20,000 capital gain taxed at 15%. Her alternative minimum taxable income in excess of her exemption amount is $237,400. Compute Alice's regular tax, AMT, and total tax.

Accepted Answer

Alice's regular tax is $52,801 = $49,801

Question 12

Mr. and Mrs. Queen provide 90% of the financial support for Mrs. Queen's mother, Doreen, who lives in the couples' home. Doreen's only income this year is a $7,500 taxable pension from her former employer. Mr. and Mrs. Queen can't claim Doreen as a dependent this year.

Accepted Answer

A) True 
 B)False

Question 13

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.

An above-the-line deduction reduces both adjusted gross income and taxable income.

An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

Mr. and Mrs. Luang reported $517,900 ordinary taxable income for regular tax purposes and had $39,100 positive AMT adjustments and preferences. Compute their tentative minimum tax.

Mr. and Mrs. King's regular tax liability on their joint return was $111,850. Which of the following statements is true?

A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income.

Which of the following statements concerning the overall limitation on itemized deductions is true?

The earned income credit is available only to low-income taxpayers with dependent children.

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.

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.

Mrs. Paley died on July 14, 2012. Her husband has not remarried. The Paleys' two children, ages 34 and 36, are financially independent. Mr. Paley may file as a surviving spouse in 2013 and 2014.

Alice Grim, a single taxpayer, has $219,000 taxable income, which includes a $20,000 capital gain taxed at 15%. Her alternative minimum taxable income in excess of her exemption amount is $237,400. Compute Alice's regular tax, AMT, and total tax.

Mr. and Mrs. Queen provide 90% of the financial support for Mrs. Queen's mother, Doreen, who lives in the couples' home. Doreen's only income this year is a $7,500 taxable pension from her former employer. Mr. and Mrs. Queen can't claim Doreen as a dependent this year.

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

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 a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters

Exam 14: The Individual Tax Formula

An above-the-line deduction reduces both adjusted gross income and taxable income.

An extension of the time to file an individual tax return also extends the time to pay any balance of tax due with the return.

Mr. and Mrs. Luang reported $517,900 ordinary taxable income for regular tax purposes and had $39,100 positive AMT adjustments and preferences. Compute their tentative minimum tax.

Mr. and Mrs. King's regular tax liability on their joint return was $111,850. Which of the following statements is true?

A taxpayer who knowingly signs a joint return on which his spouse has failed to report her income is liable for any tax assessments made by the IRS on that income.

Which of the following statements concerning the overall limitation on itemized deductions is true?

The earned income credit is available only to low-income taxpayers with dependent children.

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.

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.

Mrs. Paley died on July 14, 2012. Her husband has not remarried. The Paleys' two children, ages 34 and 36, are financially independent. Mr. Paley may file as a surviving spouse in 2013 and 2014.

Alice Grim, a single taxpayer, has $219,000 taxable income, which includes a $20,000 capital gain taxed at 15%. Her alternative minimum taxable income in excess of her exemption amount is $237,400. Compute Alice's regular tax, AMT, and total tax.

Mr. and Mrs. Queen provide 90% of the financial support for Mrs. Queen's mother, Doreen, who lives in the couples' home. Doreen's only income this year is a $7,500 taxable pension from her former employer. Mr. and Mrs. Queen can't claim Doreen as a dependent this year.

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

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 a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters