Question 1

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Accepted Answer

A) True 
 B)False

Question 2

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 3

Match the statements that relate to each other.Note: Choice l.may be used more than once.
a.Not available to 65-year old taxpayer who itemizes.b.Exception for U.S.citizenship or residency test (for dependency exemption purposes).c.Largest basic standard deduction available to a dependent who has no earned income.d.Considered for dependency exemption purposes.e.Qualifies for head of household filing status.f.A child (age 15) who is a dependent and has only earned income.g.Considered in applying gross income test (for dependency exemption purposes).h.Not considered in applying the gross income test (for dependency exemption purposes).i.Unmarried taxpayer who can use the same tax rates as married persons filing jointly.j.Exception to the support test (for dependency exemption purposes).k.A child (age 16) who is a dependent and has only unearned income of $4,500.l.No correct match provided.
-Surviving spouse

Accepted Answer

The answer of Match the statements that relate to each...

Question 4

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

Accepted Answer

A) True 
 B)False

Question 5

Match the statements that relate to each other.Note: Choice l.may be used more than once.
a.Available to a 70-year-old father claimed as a dependent by his son.b.Equal to tax liability divided by taxable income.c.The highest income tax rate applicable to a taxpayer.d.Not eligible for the standard deduction.e.No one qualified taxpayer meets the support test.f.Taxpayer's ex-husband does not qualify.g.A dependent child (age 18) who has only unearned income.h.Highest applicable rate is 39.6%.i.Applicable rate could be as low as 0%.j.Maximum rate is 28%.k.Income from foreign sources is not subject to tax.l.No correct match provided.
-Relationship test (for dependency exemption purposes)

Accepted Answer

The answer of Match the statements that relate to each...

Question 6

Emily,whose husband died in December 2014,maintains a household in which her dependent mother lives.Which (if any) of the following is her filing status for the tax year 2015? (Note: Emily is the executor of her husband's estate. )

Accepted Answer

A) Single 
B) Married,filing separately 
C) Surviving spouse 
D) Head of household 
E) Married,filing jointly 
A) Single 
B) Married,filing separately 
C) Surviving spouse 
D) Head of household 
E) Married,filing jointly

Question 7

Sarah furnishes more than 50% of the support of her son and daughter-in-law who live with her.If the son and daughter-in-law file a joint return,Sarah cannot claim them as dependents.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following characteristics correctly describes the procedure for the phaseout of exemptions?

Accepted Answer

A) The threshold amounts are different and depend on filing status (e.g. ,joint return,single). 
B) The threshold amounts are indexed for inflation each year. 
C) The phaseout procedure is known as a "stealth tax." 
D) For the phaseout procedure to be applied,a taxpayer's AGI must exceed the threshold amount. 
E) All of these. 
A) The threshold amounts are different and depend on filing status (e.g. ,joint return,single). 
B) The threshold amounts are indexed for inflation each year. 
C) The phaseout procedure is known as a "stealth tax." 
D) For the phaseout procedure to be applied,a taxpayer's AGI must exceed the threshold amount. 
E) All of these.

Question 9

Adjusted gross income (AGI) appears at the bottom of page 1 and at the top of page 2 of Form 1040.

Accepted Answer

A) True 
 B)False

Question 10

Which,if any,of the following is a deduction for AGI?

Accepted Answer

A) Contributions to a traditional Individual Retirement Account. 
B) Child support payments. 
C) Funeral expenses. 
D) Loss on the sale of a personal residence. 
E) Medical expenses. 
A) Contributions to a traditional Individual Retirement Account. 
B) Child support payments. 
C) Funeral expenses. 
D) Loss on the sale of a personal residence. 
E) Medical expenses.

Question 11

The filing status of a taxpayer (e.g. ,single,head of household) must be identified before the applicable standard deduction is determined.

Accepted Answer

A) True 
 B)False

Question 12

In order to claim a dependency exemption for other than a qualifying child,a taxpayer must meet the support test.Generally,this is done by furnishing more than 50% of a dependent's support.What exceptions exist,if any,where the support furnished need not be more than 50%?

Accepted Answer

One exception involves the multiple supp

Question 13

Under the income tax formula,a taxpayer must choose between deductions for AGI and the standard deduction.

Accepted Answer

A) True 
 B)False

Question 14

Match the statements that relate to each other.Note: Choice l.may be used more than once.
a.Not available to 65-year old taxpayer who itemizes.b.Exception for U.S.citizenship or residency test (for dependency exemption purposes).c.Largest basic standard deduction available to a dependent who has no earned income.d.Considered for dependency exemption purposes.e.Qualifies for head of household filing status.f.A child (age 15) who is a dependent and has only earned income.g.Considered in applying gross income test (for dependency exemption purposes).h.Not considered in applying the gross income test (for dependency exemption purposes).i.Unmarried taxpayer who can use the same tax rates as married persons filing jointly.j.Exception to the support test (for dependency exemption purposes).k.A child (age 16) who is a dependent and has only unearned income of $4,500.l.No correct match provided.
-Multiple support agreement

Accepted Answer

The answer of Match the statements that relate to each...

Question 15

Which,if any,of the following is a deduction for AGI?

Accepted Answer

A) State and local sales taxes 
B) Interest on home mortgage 
C) Charitable contributions 
D) Unreimbursed moving expenses of an employee 
E) None of these 
A) State and local sales taxes 
B) Interest on home mortgage 
C) Charitable contributions 
D) Unreimbursed moving expenses of an employee 
E) None of these

Question 16

When the kiddie tax applies,the child need not file an income tax return because the child's income will be reported on the parents' return.

Accepted Answer

A) True 
 B)False

Question 17

Under the Federal income tax formula for individuals,a choice must be made between claiming deductions for AGI and itemized deductions.

Accepted Answer

A) True 
 B)False

Question 18

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

Accepted Answer

A) True 
 B)False

Question 19

Clara,age 68,claims head of household filing status.If she has itemized deductions of $10,500 for 2015,she should not claim the standard deduction.

Accepted Answer

A) True 
 B)False

Question 20

In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?

Accepted Answer

A) In arriving at taxable income,a taxpayer must choose between the standard deduction and deductions from AGI. 
B) In arriving at AGI,personal and dependency exemptions must be subtracted from gross income. 
C) In arriving at taxable income,a taxpayer must choose between the standard deduction and claiming personal and dependency exemptions. 
D) The formula does not apply if a taxpayer elects to claim the standard deduction. 
E) None of these. 
A) In arriving at taxable income,a taxpayer must choose between the standard deduction and deductions from AGI. 
B) In arriving at AGI,personal and dependency exemptions must be subtracted from gross income. 
C) In arriving at taxable income,a taxpayer must choose between the standard deduction and claiming personal and dependency exemptions. 
D) The formula does not apply if a taxpayer elects to claim the standard deduction. 
E) None of these.

Exam 3: Computing the Tax

An individual taxpayer uses a fiscal year of March 1 to February 28.The due date of this taxpayer's Federal income tax return is May 15 of each tax year.

Dan and Donna are husband and wife and file separate returns for the year.If Dan itemizes his deductions from AGI,Donna cannot claim the standard deduction.

The basic and additional standard deductions both are subject to an annual adjustment for inflation.

Emily,whose husband died in December 2014,maintains a household in which her dependent mother lives.Which (if any) of the following is her filing status for the tax year 2015? (Note: Emily is the executor of her husband's estate. )

Sarah furnishes more than 50% of the support of her son and daughter-in-law who live with her.If the son and daughter-in-law file a joint return,Sarah cannot claim them as dependents.

Which of the following characteristics correctly describes the procedure for the phaseout of exemptions?

Adjusted gross income (AGI) appears at the bottom of page 1 and at the top of page 2 of Form 1040.

Which,if any,of the following is a deduction for AGI?

The filing status of a taxpayer (e.g. ,single,head of household) must be identified before the applicable standard deduction is determined.

In order to claim a dependency exemption for other than a qualifying child,a taxpayer must meet the support test.Generally,this is done by furnishing more than 50% of a dependent's support.What exceptions exist,if any,where the support furnished need not be more than 50%?

Under the income tax formula,a taxpayer must choose between deductions for AGI and the standard deduction.

Which,if any,of the following is a deduction for AGI?

When the kiddie tax applies,the child need not file an income tax return because the child's income will be reported on the parents' return.

Under the Federal income tax formula for individuals,a choice must be made between claiming deductions for AGI and itemized deductions.

The additional standard deduction for age and blindness is greater for married taxpayers than for single taxpayers.

Clara,age 68,claims head of household filing status.If she has itemized deductions of $10,500 for 2015,she should not claim the standard deduction.

In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?

An Introduction to Taxation and Understanding the Tax Law

Working With the Tax Law

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, cost Recovery, amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Tax Credits and Payments

Property Transactions: Determination of Gain or Loss, basis Considerations, and Nontaxabl

Property Transactions: Capital Gains and Losses, section 1231 and Recapture Provisions

Alternative Minimum Tax

Accounting Periods and Methods

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Distributions Not in Complete Liquidation

Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations

Partnerships

S Corporations

Exempt Entities

Multistate Corporate Taxation

Taxation of International Transactions

Tax Practice and Ethics

Family Tax Planning

Income Taxation of Trusts and Estates

Filters