Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until October 15 of the following year.

Accepted Answer

A) True 
 B)False

Question 3

Mr. Andrews is age 58, legally blind, and files as a single taxpayer. His standard deduction for 2015 is $6,300.

Accepted Answer

A) True 
 B)False

Question 4

Mr. and Mrs. Cox reported $115,900 AGI on their joint return. The couple has three dependent children under age 17. Compute their child credit.

Accepted Answer

A)  $0 
B)  $2,100 
C)  $2,700 
D)  $3,000 
A)  $0 
B)  $2,100 
C)  $2,700 
D)  $3,000

Question 5

Mr. and Mrs. Arlette spent $5,900 for child care for their 12-year-old daughter. Mr. Arlette's earned income was $178,000, Mrs. Arlette's earned income was $33,100, and the AGI on their joint return was $225,200. Calculate their dependent care credit.

Accepted Answer

A)  $5,900 
B)  $1,180 
C)  $600 
D)  $0 
A)  $5,900 
B)  $1,180 
C)  $600 
D)  $0

Question 6

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 7

Which of the following statements regarding the calculation of regular tax liability is false?

Accepted Answer

A)  The rate schedule for calculating regular tax liability depends on the taxpayer's filing status. 
B)  All taxpayer, regardless of the amount of their taxable income, pay a 10% tax on their first bracket of income. 
C)  The individual tax rate schedules are adjusted annually for inflation. 
D)  The tax brackets in the single rate schedule are one-half of the brackets in the married-filing-jointly rate schedule. 
A)  The rate schedule for calculating regular tax liability depends on the taxpayer's filing status. 
B)  All taxpayer, regardless of the amount of their taxable income, pay a 10% tax on their first bracket of income. 
C)  The individual tax rate schedules are adjusted annually for inflation. 
D)  The tax brackets in the single rate schedule are one-half of the brackets in the married-filing-jointly rate schedule.

Question 8

Ms. Kilo's regular income tax before credits on her Form 1040 is $45,890, and she has a $5,700 minimum tax credit from a previous year. Which of the following statements is true?

Accepted Answer

A)  If Ms. Kilo's tentative minimum tax is $50,500, her total tax liability is $44,800. 
B)  If Ms. Kilo's tentative minimum tax is $42,400, her total tax liability is $40,190. 
C)  If Ms. Kilo's tentative minimum tax is $42,400, her total tax liability is $42,400. 
D)  Both A. and C. are true. 
A)  If Ms. Kilo's tentative minimum tax is $50,500, her total tax liability is $44,800. 
B)  If Ms. Kilo's tentative minimum tax is $42,400, her total tax liability is $40,190. 
C)  If Ms. Kilo's tentative minimum tax is $42,400, her total tax liability is $42,400. 
D)  Both A. and C. are true.

Question 9

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 10

Harry and Sally were married on December 23, 2014. Their income for the entire year is reported on a joint return.

Accepted Answer

A) True 
 B)False

Question 11

Julie, an unmarried individual, lives in a home with her 13-year-old dependent son, Oscar. This year, Julie had the following tax information.   Compute Julie's adjusted gross income (AGI) and taxable income.

Accepted Answer

A)  AGI $97,800; taxable income $69,700 
B)  AGI $97,800; taxable income $76,200 
C)  AGI $91,300; taxable income $66,900 
D)  AGI $91,300; taxable income $69,700 
A)  AGI $97,800; taxable income $69,700 
B)  AGI $97,800; taxable income $76,200 
C)  AGI $91,300; taxable income $66,900 
D)  AGI $91,300; taxable income $69,700

Question 12

Mr. and Mrs. Harvey's tax liability before credits was $1,675. Their income tax withholding was $1,050, and they are entitled to a $1,189 earned income credit. Which of the following statements is true?

Accepted Answer

A)  The Harveys are entitled to a $1,050 tax refund. 
B)  The Harveys are entitled to a $1,189 tax refund. 
C)  The Harveys are entitled to a $564 tax refund. 
D)  The Harveys owe no additional tax but they are not entitled to a refund. 
A)  The Harveys are entitled to a $1,050 tax refund. 
B)  The Harveys are entitled to a $1,189 tax refund. 
C)  The Harveys are entitled to a $564 tax refund. 
D)  The Harveys owe no additional tax but they are not entitled to a refund.

Question 13

Mr. and Mrs. Daniels, ages 45, and 42, had the following income items in 2015:   Mr. and Mrs. Daniels have no dependents and claim the standard deduction. Compute their income tax liability on a joint return.

Accepted Answer

A)  $19,523 
B)  $20,363 
C)  $22,248 
D)  None of the above. 
A)  $19,523 
B)  $20,363 
C)  $22,248 
D)  None of the above.

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

Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until October 15 of the following year.

Mr. Andrews is age 58, legally blind, and files as a single taxpayer. His standard deduction for 2015 is $6,300.

Mr. and Mrs. Cox reported $115,900 AGI on their joint return. The couple has three dependent children under age 17. Compute their child credit.

Mr. and Mrs. Arlette spent $5,900 for child care for their 12-year-old daughter. Mr. Arlette's earned income was $178,000, Mrs. Arlette's earned income was $33,100, and the AGI on their joint return was $225,200. Calculate their dependent care credit.

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 regarding the calculation of regular tax liability is false?

Ms. Kilo's regular income tax before credits on her Form 1040 is $45,890, and she has a $5,700 minimum tax credit from a previous year. 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.

Harry and Sally were married on December 23, 2014. Their income for the entire year is reported on a joint return.

Julie, an unmarried individual, lives in a home with her 13-year-old dependent son, Oscar. This year, Julie had the following tax information. Compute Julie's adjusted gross income (AGI) and taxable income.

Mr. and Mrs. Harvey's tax liability before credits was $1,675. Their income tax withholding was $1,050, and they are entitled to a $1,189 earned income credit. Which of the following statements is true?

Mr. and Mrs. Daniels, ages 45, and 42, had the following income items in 2015: Mr. and Mrs. Daniels have no dependents and claim the standard deduction. Compute their income tax liability on a joint 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

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Exam 14: The Individual Tax Formula

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

Individual taxpayers can obtain an automatic extension of time to file a calendar year Form 1040 until October 15 of the following year.

Mr. Andrews is age 58, legally blind, and files as a single taxpayer. His standard deduction for 2015 is $6,300.

Mr. and Mrs. Cox reported $115,900 AGI on their joint return. The couple has three dependent children under age 17. Compute their child credit.

Mr. and Mrs. Arlette spent $5,900 for child care for their 12-year-old daughter. Mr. Arlette's earned income was $178,000, Mrs. Arlette's earned income was $33,100, and the AGI on their joint return was $225,200. Calculate their dependent care credit.

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 regarding the calculation of regular tax liability is false?

Ms. Kilo's regular income tax before credits on her Form 1040 is $45,890, and she has a $5,700 minimum tax credit from a previous year. 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.

Harry and Sally were married on December 23, 2014. Their income for the entire year is reported on a joint return.

Julie, an unmarried individual, lives in a home with her 13-year-old dependent son, Oscar. This year, Julie had the following tax information. Compute Julie's adjusted gross income (AGI) and taxable income.

Mr. and Mrs. Harvey's tax liability before credits was $1,675. Their income tax withholding was $1,050, and they are entitled to a $1,189 earned income credit. Which of the following statements is true?

Mr. and Mrs. Daniels, ages 45, and 42, had the following income items in 2015: Mr. and Mrs. Daniels have no dependents and claim the standard deduction. Compute their income tax liability on a joint 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