Question 1

The 3.8 percent ACA Medicare surtax does not apply to:

Accepted Answer

A) Interest 
B) Dividends 
C) Capital gains 
D) Wages 
A) Interest 
B) Dividends 
C) Capital gains 
D) Wages

Question 2

Oscar and Mary have no dependents and file a joint income tax return for 2016. They have adjusted gross income of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2016 income tax return?

Accepted Answer

A) $97,400 
B) $101,900 
C) $102,000 
D) $110,000 
E) $136,000 
A) $97,400 
B) $101,900 
C) $102,000 
D) $110,000 
E) $136,000

Question 3

For each of the following situations, indicate whether the taxpayer(s) is(are) required to file a tax return for 2016. Explain your answer.
a.​
Debra, age 68, and Jerry, age 70, are married and file a joint return.They received $24,000 in interest income from a savings account.
b.Margie is a single taxpayer with wages in 2015 of $8,400 and interest income of $200.
c.​
Janie, age 30, and Scott, age 28, are married and file a joint tax return.They had $17,000 in earnings from wages.
d.​
Kim, age 20, is a single college student who is claimed as a dependent by her parents.She earned $2,000 from a part-time job and has $450 in interest income.
e.​
Stefanie, a 25-year-old single taxpayer, has wages of $1,500, from which $80 of federal income tax was withheld.

Accepted Answer

The answer of For each of the following situations, indicate...

Question 4

Mary is age 33 and a single taxpayer with adjusted gross income for 2016 of $29,400. Mary maintains a home for three dependent children and has itemized deductions of $3,000. Calculate the following amounts for Mary's 2016 income tax return:
a.The number of exemptions claimed
b.Mary's standard or itemized deduction amount
c.Mary's taxable income

Accepted Answer

The answer of Mary is age 33 and a single...

Question 5

Nathan is 24 years old, single, and works as an accountant in a salmon cannery in Alaska. His total wages for 2016 were $32,000. Federal income tax of $4,500 was withheld from his wages. His only other income was $260 of interest and he had no deductible expenses.
​
Calculate the income tax due or income tax refund on Nathan's 2016 individual income tax return. Use the tax formula for individuals and show your work.

Accepted Answer

The answer of Nathan is 24 years old, single, and...

Question 6

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

Accepted Answer

A) True 
 B)False

Question 7

If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.

Accepted Answer

A) True 
 B)False

Question 8

If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Accepted Answer

A) True 
 B)False

Question 9

Hansel and Gretel are married taxpayers who file a joint income tax return for 2016. They have no dependents. On their 2016 income tax return, they have adjusted gross income of $62,000 and total itemized deductions of $4,000. What is their taxable income?

Accepted Answer

$41,300 =

Question 10

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Form 1040A 
B) Form 1065 
C) Form 1120 
D) Form 1041 
A) Form 1040A 
B) Form 1065 
C) Form 1120 
D) Form 1041

Question 12

Which of the following forms may be filed by individual taxpayers?

Accepted Answer

A) Form 1040 
B) Form 1041 
C) Form 1065 
D) Form 1120 
E) None of the above 
A) Form 1040 
B) Form 1041 
C) Form 1065 
D) Form 1120 
E) None of the above

Question 13

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 14

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

Accepted Answer

A) ​Ensuring that all persons pay the same amount of tax. 
B) ​Economic goals such as reduction in unemployment. 
C) ​Social goals such as lowering the cost of adoption. 
D) ​Raise adequate revenue to operate the government. 
A) ​Ensuring that all persons pay the same amount of tax. 
B) ​Economic goals such as reduction in unemployment. 
C) ​Social goals such as lowering the cost of adoption. 
D) ​Raise adequate revenue to operate the government.

Question 15

Amended individual returns are filed on:

Accepted Answer

A) Form 1040X 
B) Form 1120S 
C) Form 1041 
D) Form 1040Amend 
A) Form 1040X 
B) Form 1120S 
C) Form 1041 
D) Form 1040Amend

Question 16

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is correct?

Accepted Answer

A) An individual is a reporting entity but not a taxable entity. 
B) A partnership is a taxable entity and a reporting entity. 
C) A corporation is a reporting entity but not a taxable entity. 
D) A partnership is a reporting entity but not a taxable entity. 
A) An individual is a reporting entity but not a taxable entity. 
B) A partnership is a taxable entity and a reporting entity. 
C) A corporation is a reporting entity but not a taxable entity. 
D) A partnership is a reporting entity but not a taxable entity.

Question 18

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 19

Clay purchased Elm Corporation stock 20 years ago for $10,000. In the current year, he sells the stock for $29,000. What is Clay's gain or loss?

Accepted Answer

A) $19,000 long-term 
B) $19,000 short-term 
C) $19,000 ordinary 
D) $3,000, with the excess carried forward 
E) No gain or loss is recognized on this transaction 
A) $19,000 long-term 
B) $19,000 short-term 
C) $19,000 ordinary 
D) $3,000, with the excess carried forward 
E) No gain or loss is recognized on this transaction

Question 20

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

Accepted Answer

A taxpayer should claim the la

The 3.8 percent ACA Medicare surtax does not apply to:

Oscar and Mary have no dependents and file a joint income tax return for 2016. They have adjusted gross income of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2016 income tax return?

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.

If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Hansel and Gretel are married taxpayers who file a joint income tax return for 2016. They have no dependents. On their 2016 income tax return, they have adjusted gross income of $62,000 and total itemized deductions of $4,000. What is their taxable income?

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

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

Which of the following forms may be filed by individual taxpayers?

Electronically filed tax returns:

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

Amended individual returns are filed on:

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

Which of the following is correct?

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.

Clay purchased Elm Corporation stock 20 years ago for $10,000. In the current year, he sells the stock for $29,000. What is Clay's gain or loss?

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

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

The 3.8 percent ACA Medicare surtax does not apply to:

Oscar and Mary have no dependents and file a joint income tax return for 2016. They have adjusted gross income of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2016 income tax return?

A single taxpayer, who is not a dependent on another's return, not blind and under age 65, with income of $8,750 must file a tax return.

If your spouse dies during the tax year and you do not remarry, you must file as single for the year of death.

If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he or she files a tax return.

Hansel and Gretel are married taxpayers who file a joint income tax return for 2016. They have no dependents. On their 2016 income tax return, they have adjusted gross income of $62,000 and total itemized deductions of $4,000. What is their taxable income?

A dependency exemption may be claimed by the supporting taxpayer in the year of death of a dependent.

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

Which of the following forms may be filed by individual taxpayers?

Electronically filed tax returns:

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

Amended individual returns are filed on:

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income.

Which of the following is correct?

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.

Clay purchased Elm Corporation stock 20 years ago for $10,000. In the current year, he sells the stock for $29,000. What is Clay's gain or loss?

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

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