Question 1

The maximum official individual income tax rate for 2018 is 39.6 percent, not including the Medicare surtax on net investment income.

Accepted Answer

A) True 
 B)False

Question 2

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Accepted Answer

A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above. 
A) The taxpayer's filing status. 
B) The taxpayer's gross income. 
C) The taxpayer's total itemized deductions. 
D) The availability of the additional standard deduction for taxpayers who are elderly. 
E) None of the above.

Question 3

Eugene and Velma are married.For 2018, Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns.They have no deductions for adjusted gross income.Eugene's itemized deductions are $14,200 and Velma's are $4,000.Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions, what is Eugene's taxable income?

Accepted Answer

A) $10,800 
B) $18,000 
C) $1,000 
D) $21,000 
E) None of the above 
A) $10,800 
B) $18,000 
C) $1,000 
D) $21,000 
E) None of the above

Question 4

Alan, whose wife died in 2016, filed a joint tax return for 2016.He did not remarry and continues to maintain his home in which his four dependent children live.In the preparation of his tax return for 2018, Alan should file as:

Accepted Answer

A) Single 
B) Qualifying widow(er) 
C) Head of household 
D) Married, filing separately 
E) None of the above 
A) Single 
B) Qualifying widow(er) 
C) Head of household 
D) Married, filing separately 
E) None of the above

Question 5

In which of the following situations is the taxpayer not required to file a 2018 income tax return?

Accepted Answer

A) When an individual has a current year income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800. 
C) When the taxpayer is a 35-year-old head of household with wages of $18,800. 
D) When the taxpayer is a 69-year-old widow (spouse died 3 years ago) with wages of $16,500 and no dependents. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $26,000. 
A) When an individual has a current year income tax refund and would like to obtain it. 
B) When the taxpayer is a single 67-year-old with wages of $9,800. 
C) When the taxpayer is a 35-year-old head of household with wages of $18,800. 
D) When the taxpayer is a 69-year-old widow (spouse died 3 years ago) with wages of $16,500 and no dependents. 
E) When the taxpayers are a married couple with both spouses under 65 years old with wages of $26,000.

Question 6

Jill is a 16-year-old child who is claimed as a dependent by her parents.Jill's only income is $1,400 from her bank savings account.What is the amount of Jill's standard deduction for 2018?

Accepted Answer

A) $1,200 
B) $1,050 
C) $4,000 
D) $6,300 
E) None of the above 
A) $1,200 
B) $1,050 
C) $4,000 
D) $6,300 
E) None of the above

Question 7

Match the letter of the filing status to the taxpayers below. Items may be used more than once.
a.Single
b.Married filing a joint return
c.Married filing separate returns
d.Head of household
e.Qualifying widow(er)
f.Married filing joint or married filing separate
-The taxpayer is married, but her husband disappeared with a girlfriend while on vacation in March of the current year.The taxpayer has no dependents.

Accepted Answer

The answer of Match the letter of the filing status...

Question 8

Irma, widowed in 2017, pays all costs related to the home in which she and her unmarried son live.Her son does not qualify as her dependent.What is her filing status for 2018?

Accepted Answer

A) Single 
B) Married, filing separate 
C) Head of household 
D) Qualifying widow(er) 
E) None of the above 
A) Single 
B) Married, filing separate 
C) Head of household 
D) Qualifying widow(er) 
E) None of the above

Question 9

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Accepted Answer

A) The relative must receive less than $4,150 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above. 
A) The relative must receive less than $4,150 of gross income in order to qualify. 
B) The gross income test does not have to be met provided the relative is under age 19 at the end of the tax year. 
C) The gross income test does not have to be met provided the relative is under age 24 at the end of the tax year. 
D) The gross income test does not have to be met provided the relative is a student. 
E) All of the above.

Question 10

Jeri is single and supports her 45-year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment.
a.Can she claim him as a dependent?
b.Can she claim head of household filing status? Why or why not?

Accepted Answer

a.Yes, her son qualifies as a

Question 11

During 2018, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother.His mother was a resident of a home for the aged for the entire year and had no income.What is Murray's filing status for 2018, and how many dependents should he report on his tax return?

Accepted Answer

A) Head of household and 1 dependent 
B) Single and 2 dependents 
C) Head of household and 2 dependents 
D) Single and 1 dependent 
E) None of the above 
A) Head of household and 1 dependent 
B) Single and 2 dependents 
C) Head of household and 2 dependents 
D) Single and 1 dependent 
E) None of the above

Question 12

List each alternative filing status available to unmarried individual taxpayers.

Accepted Answer

Single.Hea

Question 13

A corporation is a reporting entity but not a tax-paying entity.

Accepted Answer

A) True 
 B)False

Question 14

An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.

Accepted Answer

A) True 
 B)False

Question 15

List if a form is used for an individual, a corporation, or a partnership tax return.
a.Form 1065
b.Schedule A, Itemized Deductions
c.Form 1040
d.Form 1120
e.Schedule B, Interest and Dividends

Accepted Answer

a.Partnership
b.Indi

Question 16

What is the difference between the standard deduction and itemized deductions?

Accepted Answer

The standard deduction is a flat amount,

Question 17

Steven, age 35 and single, is a commodities broker.His salary for 2018 is $111,500 and he has taxable interest income of $40,000.He has no deductions for adjusted gross income.His itemized deductions are $31,000.Steven does not have any dependents.​
a.What is the amount of his adjusted gross income?
b.What are his allowable itemized deductions?
c.What is his deduction for personal exemptions?
d.What is his taxable income?
e.What is his regular tax liability from the tax rate schedules?

Accepted Answer

a.$151,500 = $111,500 + $40,00

Question 18

Electronically filed tax returns:

Accepted Answer

A) May not be transmitted from a taxpayer's home computer. 
B) Constitute more than 90 percent of the returns filed with the IRS. 
C) Have error rates similar to paper returns. 
D) Offer faster refunds than paper returns. 
A) May not be transmitted from a taxpayer's home computer. 
B) Constitute more than 90 percent of the returns filed with the IRS. 
C) Have error rates similar to paper returns. 
D) Offer faster refunds than paper returns.

Question 19

The IRS:

Accepted Answer

A) requires official tax forms be obtained at the local IRS office. 
B) links to the H & R Block Web site. 
C) provides information on how to choose a stock. 
D) has an app for mobile phones. 
A) requires official tax forms be obtained at the local IRS office. 
B) links to the H & R Block Web site. 
C) provides information on how to choose a stock. 
D) has an app for mobile phones.

Question 20

Taxpayers can download tax forms from the IRS Internet site.

Accepted Answer

A) True 
 B)False

The maximum official individual income tax rate for 2018 is 39.6 percent, not including the Medicare surtax on net investment income.

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Alan, whose wife died in 2016, filed a joint tax return for 2016.He did not remarry and continues to maintain his home in which his four dependent children live.In the preparation of his tax return for 2018, Alan should file as:

In which of the following situations is the taxpayer not required to file a 2018 income tax return?

Jill is a 16-year-old child who is claimed as a dependent by her parents.Jill's only income is $1,400 from her bank savings account.What is the amount of Jill's standard deduction for 2018?

Irma, widowed in 2017, pays all costs related to the home in which she and her unmarried son live.Her son does not qualify as her dependent.What is her filing status for 2018?

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Jeri is single and supports her 45-year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a.Can she claim him as a dependent? b.Can she claim head of household filing status? Why or why not?

During 2018, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother.His mother was a resident of a home for the aged for the entire year and had no income.What is Murray's filing status for 2018, and how many dependents should he report on his tax return?

List each alternative filing status available to unmarried individual taxpayers.

A corporation is a reporting entity but not a tax-paying entity.

An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.

List if a form is used for an individual, a corporation, or a partnership tax return. a.Form 1065 b.Schedule A, Itemized Deductions c.Form 1040 d.Form 1120 e.Schedule B, Interest and Dividends

What is the difference between the standard deduction and itemized deductions?

Electronically filed tax returns:

The IRS:

Taxpayers can download tax forms from the IRS Internet site.

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 1: The Individual Income Tax Return

The maximum official individual income tax rate for 2018 is 39.6 percent, not including the Medicare surtax on net investment income.

All of the following factors are important in determining whether an individual is required to file an income tax return, except:

Alan, whose wife died in 2016, filed a joint tax return for 2016.He did not remarry and continues to maintain his home in which his four dependent children live.In the preparation of his tax return for 2018, Alan should file as:

In which of the following situations is the taxpayer not required to file a 2018 income tax return?

Jill is a 16-year-old child who is claimed as a dependent by her parents.Jill's only income is $1,400 from her bank savings account.What is the amount of Jill's standard deduction for 2018?

Irma, widowed in 2017, pays all costs related to the home in which she and her unmarried son live.Her son does not qualify as her dependent.What is her filing status for 2018?

Which of the following is a true statement with respect to the gross income test for the qualifying relative dependency exemption?

Jeri is single and supports her 45-year-old son who has income of $350 from working in a pumpkin patch during October and lives in his own apartment. a.Can she claim him as a dependent? b.Can she claim head of household filing status? Why or why not?

During 2018, Murray, who is 60 years old and unmarried, provided all of the support of his elderly mother.His mother was a resident of a home for the aged for the entire year and had no income.What is Murray's filing status for 2018, and how many dependents should he report on his tax return?

List each alternative filing status available to unmarried individual taxpayers.

A corporation is a reporting entity but not a tax-paying entity.

An individual, age 22, enrolled on a full-time basis at a trade school, is considered a student for purposes of determining whether a dependency exemption is permitted.

List if a form is used for an individual, a corporation, or a partnership tax return. a.Form 1065 b.Schedule A, Itemized Deductions c.Form 1040 d.Form 1120 e.Schedule B, Interest and Dividends

What is the difference between the standard deduction and itemized deductions?

Electronically filed tax returns:

The IRS:

Taxpayers can download tax forms from the IRS Internet site.

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters