Question 1

All taxpayers may deduct up to $4,000 of higher education tuition expenses.

Accepted Answer

A) True 
 B)False

Question 2

The value of lodging provided to a professor to enable him to live on the campus is excluded from gross income.

Accepted Answer

A) True 
 B)False

Question 3

Steve worked as a tech supervisor for a computer company.In September of this year, he was laid off.He was paid unemployment compensation for the rest of the year totaling $7,000.Which of the following is true?

Accepted Answer

A) Steve will have to report all $7,000 of the unemployment compensation as income. 
B) Steve will have to report $4,600 of the unemployment compensation as income. 
C) Unemployment compensation is never taxable. 
D) As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable. 
E) None of the above is true. 
A) Steve will have to report all $7,000 of the unemployment compensation as income. 
B) Steve will have to report $4,600 of the unemployment compensation as income. 
C) Unemployment compensation is never taxable. 
D) As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable. 
E) None of the above is true.

Question 4

Employer-provided spending accounts:

Accepted Answer

A) May be set up for tax-free vacation savings 
B) Are not allowed for dependent care 
C) Do not require that the employee provide receipts for the expenses incurred 
D) Allow qualifying expenses to be treated as tax-free reductions in the employees' salaries 
A) May be set up for tax-free vacation savings 
B) Are not allowed for dependent care 
C) Do not require that the employee provide receipts for the expenses incurred 
D) Allow qualifying expenses to be treated as tax-free reductions in the employees' salaries

Question 5

In some cases, Social Security benefits may be partially taxable.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would result in life insurance proceeds that are taxable to the recipient?

Accepted Answer

A) A life insurance policy transferred to a creditor in payment of a debt 
B) A life insurance policy in which the insured is the daughter of the taxpayer and the beneficiary is the taxpayer 
C) A life insurance policy transferred by a shareholder to a corporation 
D) A life insurance policy purchased by a taxpayer insuring his or her business partner 
E) A life insurance policy purchased by a corporation insuring an officer. 
A) A life insurance policy transferred to a creditor in payment of a debt 
B) A life insurance policy in which the insured is the daughter of the taxpayer and the beneficiary is the taxpayer 
C) A life insurance policy transferred by a shareholder to a corporation 
D) A life insurance policy purchased by a taxpayer insuring his or her business partner 
E) A life insurance policy purchased by a corporation insuring an officer.

Question 7

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year.
a.Included
b.Excluded
-Alimony from a 2016 divorce

Accepted Answer

The answer of Indicate whether each of the items listed...

Question 8

A taxpayer in the 32 percent tax bracket invests in a City of San Diego bond paying 8 percent interest.What taxable interest rate would provide the same after-tax return?

Accepted Answer

11.76 perc

Question 9

Which of the following amounts must be included in the gross income of the recipient?

Accepted Answer

A) Child support payments 
B) Welfare payments 
C) Gifts 
D) Royalties 
E) All of the above are included in gross income 
A) Child support payments 
B) Welfare payments 
C) Gifts 
D) Royalties 
E) All of the above are included in gross income

Question 10

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year.
a.Included
b.Excluded
-Child support payments

Accepted Answer

The answer of Indicate whether each of the items listed...

Question 11

Which of the following fringe benefits is taxable to the employee receiving the benefit?

Accepted Answer

A) A subscription to a tax journal provided by the employer to a corporation's tax accountant 
B) A small discount on toys granted to the salesperson for a toy store 
C) Incidental use of the company's copier by an office worker 
D) A 15 percent discount on investment real estate granted to the employee of a real estate developer 
E) All of the above are tax-free 
A) A subscription to a tax journal provided by the employer to a corporation's tax accountant 
B) A small discount on toys granted to the salesperson for a toy store 
C) Incidental use of the company's copier by an office worker 
D) A 15 percent discount on investment real estate granted to the employee of a real estate developer 
E) All of the above are tax-free

Question 12

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year.
a.Included
b.Excluded
-Farm income

Accepted Answer

The answer of Indicate whether each of the items listed...

Question 13

Which of the following are not excludable as an employee fringe benefit?

Accepted Answer

A) Employee deductions of $4,200 for dependent childcare expenses 
B) Premiums for up to $50,000 of group term life insurance 
C) An employee discount that permits the sale of merchandise to employees for just over cost 
D) Public transportation costs of $130 per month provided by the employer 
E) All of the above are excludable as an employee fringe benefit 
A) Employee deductions of $4,200 for dependent childcare expenses 
B) Premiums for up to $50,000 of group term life insurance 
C) An employee discount that permits the sale of merchandise to employees for just over cost 
D) Public transportation costs of $130 per month provided by the employer 
E) All of the above are excludable as an employee fringe benefit

Question 14

Martin retired in May 2018.His pension is $1,000 per month from a qualified retirement plan to which he contributed $42,000, and to which his employer contributed $12,000.Martin was 67 when the plan payments started.During 2018, he received 8 months of payment for a total of $8,000 from the plan.
a.Using the simplified method, calculate Martin's taxable income for 2018 from the retirement plan distributions.
b.​If Martin's contributions to the plan had been $25,200, instead of $42,000, using the simplified method, how much taxable income would he have to report in 2018 from the plan distributions?

Accepted Answer

a.$6,400.$42,000 ÷ 210 (factor

Question 15

Laura and Leon were granted a divorce in 2008.In accordance with the decree, Leon made the following payments to Laura in 2018: Child support payments contingent on the age of the child $\quad \$ 6,000$
Indefinite periodic payments terminating on Laura's death $\quad \$ 4,000$ How much of the payments can he deduct as alimony in 2018?

Accepted Answer

A) $0 
B) $6,000 
C) $10,000 
D) $4,000 
E) None of the above 
A) $0 
B) $6,000 
C) $10,000 
D) $4,000 
E) None of the above

Question 16

A taxpayer in the 33 percent tax bracket invests in a New York City Bond paying 5 percent interest.What taxable interest rate would provide the same after-tax return?

Accepted Answer

7.46% = 5%

Question 17

During the tax year, Thomas and Yolanda received $24,000 in Social Security benefits.The amount of their adjusted gross income for the year was $2,000 and they received no tax-exempt interest income.Calculate the amount of the Social Security benefits that Thomas and Yolanda must include in their gross income for the year.

Accepted Answer

$0.Their modified adjusted gro

Question 18

Karina receives a scholarship of $10,000 to a college.She is also given a job which pays $5,000 a year to help with her expenses.$7,000 of the scholarship is earmarked for tuition and $3,000 is for room and board.How much of the money from the scholarship and the job are taxable to Karina?

Accepted Answer

$8,000.The $5,000 earnings from the job

Question 19

In 2018, what rate would a single taxpayer pay on qualified dividend income:
a.If in the 37 percent bracket?
b.If in the 24 percent bracket?

Accepted Answer

a.20 perce

Question 20

Helga receives a $300,000 life insurance payment when her boyfriend Andy dies.How much of the payment is taxable to Helga?

Accepted Answer

None of the payment is taxable

All taxpayers may deduct up to $4,000 of higher education tuition expenses.

The value of lodging provided to a professor to enable him to live on the campus is excluded from gross income.

Steve worked as a tech supervisor for a computer company.In September of this year, he was laid off.He was paid unemployment compensation for the rest of the year totaling $7,000.Which of the following is true?

Employer-provided spending accounts:

In some cases, Social Security benefits may be partially taxable.

Which of the following would result in life insurance proceeds that are taxable to the recipient?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year. a.Included b.Excluded -Alimony from a 2016 divorce

A taxpayer in the 32 percent tax bracket invests in a City of San Diego bond paying 8 percent interest.What taxable interest rate would provide the same after-tax return?

Which of the following amounts must be included in the gross income of the recipient?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year. a.Included b.Excluded -Child support payments

Which of the following fringe benefits is taxable to the employee receiving the benefit?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year. a.Included b.Excluded -Farm income

Which of the following are not excludable as an employee fringe benefit?

A taxpayer in the 33 percent tax bracket invests in a New York City Bond paying 5 percent interest.What taxable interest rate would provide the same after-tax return?

Karina receives a scholarship of $10,000 to a college.She is also given a job which pays $5,000 a year to help with her expenses.$7,000 of the scholarship is earmarked for tuition and $3,000 is for room and board.How much of the money from the scholarship and the job are taxable to Karina?

In 2018, what rate would a single taxpayer pay on qualified dividend income: a.If in the 37 percent bracket? b.If in the 24 percent bracket?

Helga receives a $300,000 life insurance payment when her boyfriend Andy dies.How much of the payment is taxable to Helga?

The Individual Income Tax Return

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 2: Gross Income and Exclusions

All taxpayers may deduct up to $4,000 of higher education tuition expenses.

The value of lodging provided to a professor to enable him to live on the campus is excluded from gross income.

Steve worked as a tech supervisor for a computer company.In September of this year, he was laid off.He was paid unemployment compensation for the rest of the year totaling $7,000.Which of the following is true?

Employer-provided spending accounts:

In some cases, Social Security benefits may be partially taxable.

Which of the following would result in life insurance proceeds that are taxable to the recipient?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year. a.Included b.Excluded -Alimony from a 2016 divorce

A taxpayer in the 32 percent tax bracket invests in a City of San Diego bond paying 8 percent interest.What taxable interest rate would provide the same after-tax return?

Which of the following amounts must be included in the gross income of the recipient?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year. a.Included b.Excluded -Child support payments

Which of the following fringe benefits is taxable to the employee receiving the benefit?

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2018 tax year. a.Included b.Excluded -Farm income

Which of the following are not excludable as an employee fringe benefit?

A taxpayer in the 33 percent tax bracket invests in a New York City Bond paying 5 percent interest.What taxable interest rate would provide the same after-tax return?

Karina receives a scholarship of $10,000 to a college.She is also given a job which pays $5,000 a year to help with her expenses.$7,000 of the scholarship is earmarked for tuition and $3,000 is for room and board.How much of the money from the scholarship and the job are taxable to Karina?

In 2018, what rate would a single taxpayer pay on qualified dividend income: a.If in the 37 percent bracket? b.If in the 24 percent bracket?

Helga receives a $300,000 life insurance payment when her boyfriend Andy dies.How much of the payment is taxable to Helga?

The Individual Income Tax Return

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