Exam 1: The Individual Income Tax Return

Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:

(Multiple Choice)

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Question 41

Which of the following taxpayers does not have to file a tax return for 2016?

(Multiple Choice)

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Question 42

Taxpayers with self-employment income of $400 or more must file a tax return.

(True/False)

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Question 43

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.

(True/False)

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Question 44

The US federal tax law's sole purpose is to raise revenue.

(True/False)

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Question 45

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

(Multiple Choice)

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Question 46

In which of the following situations is the taxpayer not required to file a 2016 income tax return?

(Multiple Choice)

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Question 47

Distinguish between reporting entities and taxable entities and give examples of each.

(Essay)

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Question 48

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

(True/False)

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Question 49

Which of the following is not considered one of the five basic taxable or reporting entities?

(Multiple Choice)

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Question 50

The maximum official individual income tax rate for 2016 is 39.6 percent, not including the Medicare surtax on net investment income.

(True/False)

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Question 51

An individual is a head of household. What is her standard deduction?

(Multiple Choice)

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Question 52

Alan, whose wife died in 2014, filed a joint tax return for 2014. 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 2016, Alan should file as:

(Multiple Choice)

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Question 53

If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2016.

(True/False)

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Question 54

Calculate the amount of the standard deduction the taxpayers should claim on their 2016 income tax returns.

(Essay)

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Question 55

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

(True/False)

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Question 56

Steven, age 35 and single, is a commodities broker. His salary for 2016 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?

(Essay)

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Question 57

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer's husband died last year. Her 13 year-old dependent daughter lives with her.

(Multiple Choice)

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Question 58

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2016?

(Multiple Choice)

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Question 59

If taxpayers are married and living together at the end of the year, they must file a joint tax return.

(True/False)

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Question 60

Showing 41 - 60 of 128

Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:

Which of the following taxpayers does not have to file a tax return for 2016?

Taxpayers with self-employment income of $400 or more must file a tax return.

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.

The US federal tax law's sole purpose is to raise revenue.

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

In which of the following situations is the taxpayer not required to file a 2016 income tax return?

Distinguish between reporting entities and taxable entities and give examples of each.

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

Which of the following is not considered one of the five basic taxable or reporting entities?

The maximum official individual income tax rate for 2016 is 39.6 percent, not including the Medicare surtax on net investment income.

An individual is a head of household. What is her standard deduction?

Alan, whose wife died in 2014, filed a joint tax return for 2014. 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 2016, Alan should file as:

If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2016.

Calculate the amount of the standard deduction the taxpayers should claim on their 2016 income tax returns.

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer's husband died last year. Her 13 year-old dependent daughter lives with her.

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2016?

If taxpayers are married and living together at the end of the year, they must file a joint tax return.

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 1: The Individual Income Tax Return

Wesley owns and operates the Cheshire Chicken Ranch as a sole proprietorship in Turpid, Nevada. The income from this ranch is $49,000. Wesley wishes to use the easiest possible tax form. He may file:

Which of the following taxpayers does not have to file a tax return for 2016?

Taxpayers with self-employment income of $400 or more must file a tax return.

Most taxpayers may deduct the standard deduction amount or the amount of their itemized deductions, whichever is higher.

The US federal tax law's sole purpose is to raise revenue.​

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

In which of the following situations is the taxpayer not required to file a 2016 income tax return?

Distinguish between reporting entities and taxable entities and give examples of each.

An individual taxpayer with a net capital loss may deduct up to $3,000 per year against ordinary income.

Which of the following is not considered one of the five basic taxable or reporting entities?​

The maximum official individual income tax rate for 2016 is 39.6 percent, not including the Medicare surtax on net investment income.

An individual is a head of household. What is her standard deduction?

Alan, whose wife died in 2014, filed a joint tax return for 2014. 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 2016, Alan should file as:

If a taxpayer's adjusted gross income exceeds certain threshold amounts, he or she may be required to reduce the amount of the otherwise allowable deductions for itemized deductions and personal and dependency exemptions in 2016.

Calculate the amount of the standard deduction the taxpayers should claim on their 2016 income tax returns.

An item is not included in gross income unless the tax law specifies that the item is subject to taxation.

Match the letter of the filing status to the taxpayers below. Items may be used more than once. -The taxpayer's husband died last year. Her 13 year-old dependent daughter lives with her.

John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,200 of wages from a part-time job at the college book store. What is Ann's filing status for 2016?

If taxpayers are married and living together at the end of the year, they must file a joint tax return.

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

The US federal tax law's sole purpose is to raise revenue.

Which of the following is not considered one of the five basic taxable or reporting entities?