Exam 1: The Individual Income Tax Return

Oscar and Mary have no dependents and file a joint income tax return for 2018.They have adjusted gross income (all wages)of $140,000 and itemized deductions of $30,000.What is the amount of taxable income that Oscar and Mary must report on their 2018 income tax return?

List two general objectives of the tax code.

Scholarships received by a student may be excluded for purposes of the support test for determining the availability of the dependency exemption.

Determine from the tax table or the tax rate schedule, whichever is appropriate, the amount of the income tax for each of the following taxpayers for 2018. Taxpayer(s) Filing Status Taxable Income Income Tax Macintosh Single \ 35,680 Hindmarsh MFS \ 62,100 Kinney MFJ \ 142,000 Rosenthal H of H \ 91,350 Wilk Single \ 21,130

Electronic filing (e-filing):

If an unmarried taxpayer paid more than half the cost of keeping a home which is the principal place of residence of a nephew, who is not her dependent, she may use the head of household filing status.

Which of the following is not a capital asset?

Fran bought stock in the FCM Corporation 4 years ago at a price of $18,000.She sold it this year for $22,225 and paid her broker $225 from the proceeds of the sale. a.What is Fran's amount realized? b.What is Fran's adjusted basis? c.What is Fran's realized gain or loss? d.What is Fran's recognized gain or loss? e.How much of the gain or loss should be included in her tax return?

Which of the following is not a goal of the tax law?

Partnership income is reported on:

Schedule 1 of Form 1040 is used to report:

Norman and Linda are married taxpayers with taxable income of $126,000 in 2018. a.When you calculate their tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? b.What is their tax liability?

Martin, a 50-year-old single taxpayer, paid the full cost of maintaining his dependent mother in a home for the aged for the entire year.What is the amount of Martin's standard deduction for 2018?

Taxpayers who are blind get the benefit of:

Partnerships:

The two types of dependents are qualifying child or qualifying dependent.

Depending on the amounts of income and other tax information, some individuals may report their income on:

Ronald is 92 years old and in poor health.Clever investing earlier in his life has left him with a sizeable income.He is able to support his son Ed.Ed is 67 years old and a bit "confused," so he lives in a nursing home.Ed's income is less than $2,000.How many dependents should Ronald claim on his tax return?

A dependent that dies during the tax year may still qualify as a dependent.

Which of the following relatives will not satisfy the relationship test for the dependency?